LE-TRA Overview

Logistics Execution
The Logistics Execution (LE) component models the logistics processes in a company. It
covers the entire process chain from the vendor through the company warehouse,
production facilities, and distribution centers to the customer.
The LE processes include:
The goods receipt process: Goods pickup from the vendor and put away in the
company's warehouse.
The goods issue process: Picking the goods and delivering them to the customer.
Internal warehouse processes such as posting change, stock transfer, and inventory.
The shipment process: Inbound and outbound shipments, and shipment cost calculation
and settlement.

Transportation
A shipment represents a physical goods movement between two or more locations. [in
Business]
Transportation is a essential element in Logistic chain
Affects both incoming and outgoing goods
Transportation costs also play an essential role in calculation in price of a product, thus
necessary to keep transportation costs low
Transportation is carried out through Shipment Documents [in SAP]

Organizational structure - Shipping

Transportation planning point

Company code
Company code

Transportationplanning
planningpoint
point
Transportation

Plant
Plant

Storage
Storage location
location

Shipping
Shippingpoint
point

Warehouse
Warehousenumber
number

Loading
point
Loading
point

Transportation planning point

A group of employees responsible for organizing transportation activities - what

to ship, when to ship, how to ship, where to ship

Each shipment has to be assigned to a specific transportation planning point for
carrying out the transportation planning

What to Ship???

How to Ship???
Shipping Document
with all the details

Where to Ship???

When to Ship???

Transportation planning point

We can have Transportation Planning Point according to our companys needs, for
example,
- according to geographical location or
- mode of transport.
Road

How many
Transportation
planning point
should I have??

Sea

United
States
Department
of
Transportation

Transportation planning point

Transportation planning point is created in transaction OVXT or menu path: IMG Enterprise
Structure Definition Logistic Execution Maintain Transportation Planning point
Assign Transportation point to a company code
This assignment is relevant for shipment costing and settlement only.

Shipping point determination

Route
Route is a fundamental basis to create and plan shipments in SAP
Route is Pathway from goods/ services departure point to its destination point
The route determines the itinerary and the means of transport in shipping
It also carries very essential information such as Vandor, transportation relevance, Transit
time etc
System determines Route in a sales document which can be copied to Delivery document
and further in a Shipment document.

Route determination

Route controls
When route is determined, lot of information is determined for the shipment document
Route maintenance and route determination maintenance is carried out under path: IMG>
Logistic Execution> Transportation> Basic Transport functions> Routes

Outbound delivery and shipment

Transportation and Transportation cost

Shipment - Terms to understand

Transportation connection point

Stages
Legs
Routes

The information contained in this document is proprietary. Copyright 2014 Capgemini. All rights reserved.

21

Transportation connection point

A connection point can be one of the following:
an airport or a harbor
a border crossing
a railway station
a load transfer point

Jamshedpur
Factory
Truck
Shipping
point

JNPT
Navi Mumbai
Sea port

Sea

Rotterdam
Sea port
NL

Dresden
Rail

Transportation Connection point

DE
factory
Customer

Stages
Stages contain information about geographical factors for a shipment
Can be a Load transfer point, Border Crossing point or Legs
Load transfer points: The point where a shipment is unloaded from one means of transport
and loaded onto another.
Border crossing points: The point where a shipment crosses the border.
Leg: A beginning point and end point is defined

Legs

Shipment Legs
Shipment leg is formed with connection between beginning point and end point.
The following can be beginning points or end points:
Transportation connection point (train station or port, for example)
Shipping point (or loading point)
Plant (or storage location)
Customer location (may include customers unloading point)
Vendor loading point
Freely-definable address

Stages Legs Types of Legs

Preliminary leg (if legs departure point = Delivery Departure point)
Subsequent leg (if legs destination point = Delivery Destination point)
Main leg (if leg has both departure point and destination point)
Direct leg (if the leg links the delivery departure point directly to the delivery
destination; and there are no more items to deliver)
Return leg (if the leg links the delivery destination to the depot - where it has
started from)

Load Transfer Points

Jamshedpur
Factory
Shipping point

Truck

Preliminary Leg

JNPT
Navi Mumbai

Load Transfer Points

Sea

Main Leg

Rotterdam
Sea Port
Netherlands

Rail

Dresden
Factory
location
Germany

Sub sequent Leg

Types of Shipment
Based on the different forms of transportation, the shipments can be categorized
as below
Individual shipment
Collective shipment
Multimodal transport/ Transportation chain

Individual Shipment
Individual shipment: (Shipment type 0001 provided by SAP)
An individual shipment includesOne or more deliveries
One point of departure
One destination
One mode of transport

Collective Shipment
Collective shipment: (Shipment type 0002 provided by SAP)
A collective (or milk-run) shipment includes
One or more deliveries
Several points of departure
Several destinations
One mode of transport

Delivery 2 (to
WalMart)

Delivery 2

Delivery 1

Delivery 1
(to K Mart)

Main Leg

Subsequent Leg

Delivery 2

Transportation Chain
Transportation chain/ Multi-modal transport: (Shipment type 0004,0005,0006 provided
by SAP)
A transportation chain is useful if you are dealing with deliveries that will be
transported using multiple modes of transportation (and are thus processed by
different departments at the transportation planning point).
One or more deliveries
Several points of departure
Several points of destination
More than one modes of transport

Business Scenario - Transportation Chain

Customer Berlin

Shipment
Document 1

Shipment
Document 2

Shipment
Document 3

Business Scenario - Transportation Chain

Customer Berlin

Shipment
Document 1

Business Scenario - Transportation Chain- Challenges Ahead

If you want to depict a transportation chain within a single shipment document, you must also
accept the limited functions available to you.
Reason: Almost all shipment document functions refer to the document as a whole:
Outputs can only be printed for the entire document, not for individual legs
Shipping units (Pallets, Container, etc) can only be created for the entire document, not for
individual legs
The same is valid for texts, deadlines in general, etc.

Determination of Legs
1: Leg determination according to ITINERARY (as per the order of deliveries in the
shipment document)

DeliveryShipping Point
Customer's Destination
1

Cincinnati

Denver

Cincinnati

Dallas

New York

Harrisburg

Delivery 1
and 2

Cincinnati

Truck

Preliminary Leg

New York

Delivery
1,2 and 3

Truck

Main Leg

Delivery 2
and 3

Denver

Truck

Subsequent Leg

Delivery 3

Dallas

Truck

Harrisb
urg

Subsequent Leg

Determination of Legs
2: A type of leg determination in which a preliminary leg is created for each starting
point and a subsequent leg is created for each destination point.
This type of leg determination is used for transporting deliveries that are to be sent by

sea in a group, but originate from different shipping points or are to be transported to
different ship-to parties.

Delivery 2

Washing
ton

Delivery 1
and 3

Preliminary Leg

Shipping
Delivery Point
1

Customer's
Destination

New York

Berlin

Washington

Dresden

New York

Delivery
1,2 and 3

Main Leg

Delivery 2

Dresden

Berlin

Delivery
1,2 and 3

Subsequent Leg

Delivery
1,2 and 3

Delivery 1
and 3

Subsequent Leg

Determination of Legs
3: A type of leg determination in which a preliminary leg and a subsequent leg are
created for each delivery. This leg determination type is used for transporting
extensive amounts of goods that must be distributed among multiple deliveries
because one delivery would not offer enough capacity.

Shipping Customer's
DeliveryPoint
Destination
1

Delivery 2

New York
2

Preliminary Leg

New York

Delivery 1
and 2

Main Leg

Delivery 1

Berlin

Washingt

on

Delivery 1

Dresden

Dresden

Delivery 1
and 2

Delivery
1,2

Subsequent Leg

Delivery 2

Subsequent Leg

Determination of Legs
4: Same as 1; but shipping type for Preliminary and subsequent legs are changeable
in the shipment document
0: Only determine assignment of deliveries to the stages For documents in which
such a complex situation exists that it is necessary to generate the legs manually. To
reduce the maintenance effort, you can at least determine the assignment of delivery
notes to stages.

Blank: No leg determination For documents in which legs are not relevant (Ex:
Empty shipments)

LE-TRA Training | 09.10-09-2015, Mumbai

The information contained in this document is proprietary. Copyright 2014 Capgemini. All rights reserved.

38

Determination of Legs - Manual Changes

We can manually add the stages with the stages which are determined automatically
We can specify the different Mode of transport, service provider details, Inco terms for
the stages newly entered

Transportation relevance - Control

For carrying out transportation following should be relevant for transportation
- Delivery type
- Delivery item category
- Route

This is done under menu path: IMG> Logistic Execution> Transportation>

Shipments> Maintain Transportation relevance

Controlling shipments: IMG Shipment Document Type

Completion type
Process control
Service level
Leg indicator
Shipping type
Leg determination type
Copying data
Output determination

Text determination
Default Values

Menu Path: IMG> Logistic Execution> Transportation> Shipments> Define Shipment ty

Shipment document - structure

The shipment document header contains data that applies to the whole document such as
shipment type, transportation planning point, route, deadlines, and status information.
The shipment document item contains inbound or outbound deliveries in inbound or
outbound shipment respectively

Identifying the status of the shipment

Red - Planning is completed. Shipment status planned

Yellow - Activities in Plant. Loading start & end
Green - Processing/Shipment is completed

Identifying the status of the shipment

A shipment can have various statuses which uniquely

identifies what activity still needs to be done, and what
activity has been completed
Planned Shipments Planning is complete
Check - in Vehicle arrives at the Plant
Start Load Loading goods into the Vehicle begins
End Load Goods are fully loaded into Vehicle
Shipment Completion Necessary documents are created
(like Bill of Lading, material safety data sheets) and will be
issued to the respective persons

Creating Shipment documents

Manual Creation
Manual creation using planning proposal (use of planning profile)
Automatic creation using collective processing - online & background
Interfaced to an external transportation planning system (ex: SAP APO, LEO - an ORTEC
product)
Transactions used for creating shipments are
- VT01N - Single Document
- VT04 - Collective Processing
- VT07 - Collective Processing in Background

Planning profile

To create shipments and fill with default data (used during collective processing)
Program: RV56TRGN (all the profiles are variants of this program)

RV56TRSP

RV56TRTR

Activity Profile
For each status completion, we can decide an Activity profile
Activity profile determines the activities carried out when a specific status is set
for the shipment document
Activity profile is accessed and maintained under menu path: IMG> Logistics
Execution> Transportation> Shipments> Define and assign activities profile
Program: RV56ABST (all the activities are variants of this program)

Activity Profile

Standard Reports available in SAP

Utilization report - VT14- displays shipments that are not utilized to full capacity

Transport Execution Monitor - VT20 - helps the transportation planner can react
quickly to situations and also have a complete overview of the overall status of all
planned shipments.

Salient Features in SAP

Will be able to select deliveries with specific criteria to attach in a shipment (screen info for
delivery selection)
Shall capture the Tender Status (Rejected by Forwarding Agent, Accepted by FA with
conditions, Offer Cancelled, etc)
Delivery may be split up into two or more shipments if they do not fit on to one truck
Will be able to update Forwarding agent/ transportation planning department with a maximum
price which you can offer for a shipment while tendering
Will be able to see the estimated costs for a shipment once it is fully planned
Will be able to quickly adjust the transportation plan by changing the mode of transport, the
LSP, and even the route if necessary
Will be able to keep track of changes made in the shipment document
Will be able to copy the details (like Forwarding Agent, Route, Shipping type, Deadlines) from
delivery into Shipment document automatically
Will be able to maintain translation according to the business needs for Routes, Connection
points, Stages, etc

Shipment processing - Summary

Shipment Costing

What it is?? -

Why should I pay???

Shipment Costing - Prerequisites

Have my shipment has a service

Have my shipment agent???
has a service
agent???

Have my shipment attained the

minimum
status???
Have my
shipment
attained the
minimum status???

Is my shipment relevant for

Is myshipment
shipmentcosting???
relevant for
shipment costing???

Shipment Costing - steps involved

Shipment Cost document structure

Shipment cost document - Structure

Shipment cost items either refer to a shipment header or shipment stages
An shipment cost item can refer to Shipment header as insurance charges are
for complete shipment
An item can refer to shipment stages as load transfer charges could be
charged to each Load transfer point (Stage)
These functions are controlled through shipment cost item category.

Shipment
Header
Header

Shipment cost Item

Shipment
ShipmentShipment cost Item 2
Stage
Stage
1 1
Shipment
Shipment
Stage
Stage
2 2

Shipment cost Item 2

Factors deciding shipment costs

Factors which decide Shipment Costing
Transportation planning point
Service agents - Service agent group (attached to vendor master)
Truck, Ship, Plane - Shipping type procedure group [T_72]
Leg, Border Crossing point, Customs - Item determination group [T_71]
Menu: SPRO - LE - Transportation - Shipment Costs - Pricing - Pricing Control - Define And Assign
Pricing Procedures

Shipment Costing - Pricing - Calculation Base

Some of the factors which can act as a Calculation Base to carry out Pricing
Geographical information (Point of departure and destination - Legs) and the
distance to be travelled and the Weight loaded
Handling Units (Carton packaging, Pallets)
Delivery (To whom we deliver the goods)
Delivery Items

Settling Shipment cost - How can we do in SAP???

The settlement of shipment costs with the service agent is carried out per shipment
cost item.
This Settlement includes two major activities
Assignment and forwarding of the shipment costs to FI and cost accounting for
creation of accruals and posting of payables
Automatic settlement using the self-billing procedure or manual settlement with the
transportation service agent

Shipment cost settlement

Shipment cost settlement - account determination

G/L account Determination for Inventory Posting with GBB Transaction and
VBR General Modifier Key (T Code: OBYC)
G/L account Determination with WRX Transaction

Shipment cost settlement - Determining PO

Factors which need to consider for settling shipment costs
Plant, Purchasing organization, Purchasing group
Service agents
Transportation planning point

Integration: MM should have created a purchase order with the vendor

Pre-requisite:

Service agents [from Shipment item]

Purchasing organization [from item detail: Service procurement]

Purchasing group [from item detail: Service procurement]
Plant [from item detail: Service procurement]
Item category [Service - D]

Freight Cost Estimate - A feature in SAP

Helps transportation planner to simulate Shipment Costs during Shipment
Processing
The planner can change shipment data such as the forwarding agent, shipping
conditions, mode of transport, and can calculate his shipment costs on the basis of
this data.

Billing Shipment costs to the customer in SAP - Feature in SAP

- The shipment costs that are billed to the customer are based on the actual shipment costs.
- The shipment costs appear as an additional entry in the customer billing document.

Billing Shipment costs to the customer in SAP - Feature in SAP

Delivery to billing copy control: VTFL (keep price source as F - Shipment costs)
Ensure the shipment condition type exists in SD Pricing procedure
Map the LE condition type to SD condition type in T_VC (in case of custom conditions)
Map the condition tables if we have access sequence assigned to the condition type

Simulate Shipment costs at the order level - Feature in SAP

- for example, to determine whether transport by lorry or by train would be cheaper
or how much more it would cost to send by express delivery rather than by
standard transport.

Thank You