Defining Configuration Settings

Processing rules are used to automate system behavior for certain business processes. They automate certain business decisions and therefore reduce manual intervention, save time and minimize errors. For certain topics in SAP Logistics Management, you define the conditions under which automated processes are used.

As a general approach, you decide which process you want to automate. For that process, you need to add a rule set. The rules set provides a certain set of input and output parameters with which you define one or more rules.

Following are the processing rules that can be used to automate the business processes:

• Carrier Determination: Define conditions to automate the carrier determination for transportation requests or consignment orders. With CARRIER_DETN_V1 rule set, you can determine the appropriate carrier for a transportation request or a consignment order based on specific logistical attributes. These rule sets are invoked during the carrier determination process.
• Processing Variant Determination: Define conditions to automate the determination of a processing variant for your business processes. With PROCESSING_VARIANT_DETERMINATION_RULE rule set, you can define the processing variants that you want to apply. Processing variants control how transportation and warehousing processes are run, for example, to automate processes and reduce manual steps.
• Consolidation Cutoff Determination: Define conditions to automate when the consolidation cutoff is done in transportation planning. With CONSOLIDATION_CUTOFF_SCHEDULE_DET_V1 rule set, you can define which consolidation cutoff is used. A consolidation cutoff is a weekly recurring deadline after which the consolidation phase for a consignment ends and no additional transportation requests can be assigned.
• Normalized Unit of Measure Determination: Define conditions to automate the determination of unit of measure that is used as normalized unit of measure, that is, a unit into which all other units are to be converted into. With NORMALIZED_UNIT_OF_MEASURE_DETERMINATION rule set, you can define which normalized unit of measure is used. This unit allows the comparison of different packaging materials within a scenario. With this rule set, the various units of measure for packaging materials are converted to a standard unit of measure to facilitate comparison.
• External ID Determination for Shipper: Define conditions to automate the determination of external IDs for shippers when integrating with SAP Business Network Freight Collaboration. With SHIPPER_EXT_IDENTIFICATION_V1 rule set, you can automate the determination of external IDs for shippers to enable integration of SAP Logistics Management with other systems/platforms (such as SAP Business Network Freight Collaboration and CEP service providers). The identity is determined based on the company code and connected system type.
• Tendering Template Determination: Define conditions to automate the determination of the tendering template when integrating with SAP Business Network Freight Collaboration. With TENDERING_TEMPLATE_BUSINESS_RULE_SET_V1 rule set, you can determine the tendering template to be used during the freight tendering process. This template is a form of master data that standardizes and automates the tendering process.
• Label Format Determination: Define conditions to automate the determination of the format of the shipping labels received from Parcel/CEP service providers. With LABEL_FORMAT_DETERMINATION_V1 rule set, you can automate the determination of the format of the shipping labels received from CEP service providers. The format is determined based on the display IDs of carrier, print form, packing work center, and warehouse.
• Print Queue Determination: Define conditions to automate the determination of the printer used to print labels at a packing work center. With PWC_PRINT_QUEUE_DETERMINATION rule set, you can define the determination of the printer for label printing at your packing work centers.
• Charge Type Determination: Define conditions to automate the determination of charge types received from external system such as SAP Business Network Freight Collaboration.

  With TENDER_QUOTE_CHARGE_DETERMINATION_V1 rule set, you can automate the determination of appropriate charge type to capture the charge amount in the freight quotation. These rules are used when the external system (SAP Business Network Freight Collaboration or CEP service provider) does not transmit charge amounts at the charge type level. The charge type is determined based on the connected system type.

1. Understanding Processing Variants

   Processing variants are the core control mechanism for outbound operations in SAP Logistics Managenemt. They manage both transportation and warehousing processes, determining when and how shipments (referred to as consignments) are built.

   • Customization: You can use predefined variants provided by SAP or create your own in the Configure Shipping Processes app to tailor operations to specific business needs.
   • Automation: If multiple variants are used, business rules (specifically PROCESSING_VARIANT_DETERMINATION_RULE) should be defined to automate which variant the system selects for a specific delivery.
2. Core Shipping Scenarios

   SAP provides four primary shipping processes that serve as templates for processing variants:

   Scenario	Key Characteristics	Consignment Timing
   /SAP/No_Shipping	Used for warehouse-only activities (picking, packing, staging). Ideal for Incoterms EXW or FCA where the customer handles transport.	N/A (No transport planning).
   /SAP/Parcel	Designed for courier, express, and parcel (CEP) providers. Requires a mandatory packing step.	Built when the packer requests label printing.
   /SAP/LTL	For "Less Than Truckload" shipments with regular carrier pickups that do not require advance planning.	Built after loading is completed to group deliveries to the same destination.
   /SAP/Direct_LTL	Carriers deliver directly to the destination without transshipment. Supports freight tendering via SAP Business Network.	Created immediately upon transportation request; triggers carrier determination right away.

3. Advanced Feature: Consolidation Cutoff

   A Consolidation Cutoff is a recurring deadline used with LTL or Direct LTL processes. It defines a point in time after which no more transportation requests can be added to a specific consignment.

   • Logic: The system uses business rule CONSOLIDATION_CUTOFF_SCHEDULE_DET_V1 to determine the cutoff relative to the Transportation Planning Date (TDDAT) from the S/4HANA delivery.
   • Execution: A scheduled job runs every 15 minutes to check if a cutoff has been reached; once reached, the consignment is closed and carrier determination is triggered.
   • Impact: If a cutoff is enabled for LTL, consignments are built as soon as transportation requests are created, rather than waiting until after loading.
4. Setup Prerequisites

   To successfully run outbound processes, several foundational steps must be completed:

   • Basic Integration: You must integrate with SAP S/4HANA Cloud Private Edition and set up a warehouse layout and output management for printing.
   • Scenario-Specific Requirements:
     • Parcel: Requires integration with a carrier solution provider and the setup of the LABEL_FORMAT_DETERMINATION_V1 rule.
     • LTL: Requires pickup schedules to be maintained in the Manage Pickup Schedules app.
     • Direct LTL: Often requires technical integration with SAP Business Network Freight Collaboration for tendering and the SHIPPER_EXT_IDENTIFICATION_V1 rule.
   Note

   Once a processing variant is created, it cannot be edited. If no business rules are defined, the system will use the variant designated as the "default" in the configuration settings.

   Configuring (Outbound) Warehouse Processes in SAP Logistics Management

   To avoid manual maintenance of staging bin and receiving bin, the app Configure Warehouse Processes lets you configure key storage bins for specific warehouse processes in a single warehouse:

   • Assign or change the staging bin used to plan picking tasks for outbound processes. The assigned staging bin will be taken as destination of the picking warehouse tasks. Note: in case goods shall be packed at a packing work center, make sure to assign the same bin to a packing work center.
   • Assign or change the goods receipt bin used to temporarily hold stock for inbound processes. This bin will be taken for the goods receipt posting.
   • Understand the predefined SAP processes:
     • /SAP/PICK (Direct Pick): Pick goods to a staging bin (no packing).
     • /SAP/GOODS_RECEIPT: Place received goods into a planned receipt bin before storage.

   Use this app to optimize your warehouse process flow and support efficient and automatic picking warehouse task creation.

In this unit, you gained a comprehensive understanding of how to integrate various external systems with SAP Logistics Management, including S/4HANA Private Cloud and Business Networks for Logistics. The lessons also covered integration with essential external services such as printing and parcel providers. In addition, you explored the fundamental business configuration steps required to set up and operate SAP Logistics Management effectively within an enterprise environment.