Computing, monitoring, and settling transportation charges have become the most widely used processes in both the shipper and freight forwarding industries. I refer to these processes as charge management. To manage an end-to-end logistics contract (also known as a freight agreement) with the carrier and service provider, some transportation companies turn to the transportation charge management component of SAP Transportation Management (SAP TM).

I focus on various elements of SAP TM charge management and the new features this component provides in SAP TM 9.0 and 9.1. Every new release of SAP TM adds functionalities to the charge management module for various modes of transport, such as rail and air, in addition to ocean and road. I explain the new functionalities added with the new releases along with configuration details necessary to use these functionalities, covering the following topics:

• Freight agreements, charge calculation sheets, rate tables, and scales
• Quick quote functionality specific to air for contract rates
• Minimum-maximum settings on a calculation sheet item
• Rates based on transportation zone
• Functionalities added in SAP TM 9.0 and 9.1

The entire process flow and linkage between charge management and a logistics contract is shown in the process flow diagram in Figure 1.

Figure 1

Process flow of transportation charge management

SAP TM first searches for an agreement based on the business partner and organizational unit. If the document’s calculation date is within the agreement validity date, then the corresponding SAP TM document is chosen and selected. Therefore, finding the correct agreement document is the first step in the entire charge calculation process. Any issue the system faces during this first step affects the charge calculation process.

The agreement document requires items based on which charges are to be calculated. Therefore, the selected agreement can contain more than one line item. The correct agreement item is selected based on the attributes that are maintained both on the line item and in the SAP TM document (e.g., transportation mode, shipping type, stage category, means of transport, or service level).

The system searches for a valid transportation charge calculation sheet (TCCS) for the selected agreement item because in an agreement on a line item level, the TCCS can be manually assigned. The SAP TM document’s attributes have to meet all preconditions (transportation mode, shipping type, stage category, means of transport, or service level) defined in the agreement item for the calculation sheet.

If more than one valid charge calculation sheet is found, the system checks each calculation sheet for valid rates based on the leading charge type. If more than one calculation sheet has a rate maintained for its leading charge type, the system randomly selects one of the valid calculation sheets. Thus, in short, determining a charge calculation sheet in a freight agreement is a prerequisite to triggering the charge calculation process.

For each charge, it is required that the SAP TM system check whether it must be included in the calculation or whether its prerequisites are not met by the respective SAP TM document. In case prerequisites are not maintained, no charges are calculated in the SAP TM business documents and the status is not calculated. It is important to know the dependency and prerequisites based on which charges will be calculated — for example, that a certain charge element should only be applied for a specific trade lane, business partner, or other attributes. All the settings can be displayed when you navigate to the corresponding TCCS sheet.

Finally, for each valid charge element, the system determines a rate value. Depending on master data setup, the rate value is either taken directly from the calculation sheet or from the rate table that is assigned to the charge element.

Scale is an important concept within charge management because the charge calculation and rates defined for various charge types depend on various parameters, such as location, weight, volume, and number of containers. These parameters are set up in SAP TM in the form of scales.

In the next section, I explain some of the elements of the transportation charge management.

Elements of Transportation Charge Management

Based on the process flow shown in Figure 1, the transportation charge management component consists of the following elements: agreements, scales, rate tables, and calculation sheets.

Agreements

An agreement can be legally binding, and it always has a validity period. In the transportation industry the validity date is based on certain legal business documents only, in which a contractual relationship with a service provider from whom you are buying transportation services can be established. Freight agreements are the basis for calculating transportation charges. You use freight agreements to calculate transportation charges billable to you by your carrier.

In SAP TM there are three types of agreements: freight agreements, agreements used for documenting and monitoring customer contracts (called forwarding agreements in SAP TM), and internal agreements that exist between internal organizational units that are used for internal settlement.

The number of business partners involved in a contract can be influenced by the concept of multiple parties in the configuration of an agreement. Because SAP TM is a web user interface-based solution, to define a freight agreement in SAP TM, you execute transaction code NWBC to access the SAP NetWeaver Business Client (NWBC). Select the proper roles in SAP NWBC and then follow menu path SAP Transportation Management > Master Data > Agreements and Service Products > Define Freight Agreement Types. Click the execute icon beside Define Freight Agreement Types.

In the screen that appears (Figure 2), enter a name in the Agr. Type field (e.g., FAG1 for freight agreement). Enter a short description in the Description field, and for my example, select the Multiple Parties check box. Click the save icon to save your data.

Figure 2

Define a freight agreement type

Based on the above setup of the various business parties involved, you can specify the organizational unit and business partners involved.  In the screen that the system displays after you save the data you entered in Figure 2, enter names in the fields under the Organization Unit and Business Partner columns shown in Figure 3. Enter a name in the Agreement Type field and select Valid-From and Valid-To dates by clicking the icon at the end of these fields and selecting a date from the drop-down list. Click the save icon to save your entries.

Figure 3

The freight agreement creation screen

To summarize, an agreement includes contractual data, such as the following:

•           The sales or purchasing organization

•           The ordering party or service provider

•           Terms of payment

•           Validity dates

•           The TCCS

The system determines the agreement based on organization, business partner, validity period, and preconditions. Agreement determination is based mainly on the partner relationship. Therefore, for any agreement creation, the prerequisites are the creation of a purchase or sales organization, business partners, and a TCCS.

For an air freight, a scenario like the one that I describe here triggers the creation of a freight agreement. For example, consider a scenario in which a freight forwarder has successfully secured drafted contracts from several different service providers of airlines and now the freight forwarder is ready to select the service provider of its own choice. Based on the draft contracts, the selection of airline service provider is completed. Now the freight forwarder must enter the freight agreement (contracts) into the system as well as update various objects, such as transportation allocations.

Previously, the logistic service provider (LSP) already completed the rate table and calculation sheet and is now ready to enter the contract into the system. One important point to note is that the freight agreement is valid for both the shipper and the LSP or freight forwarder industry, whereas the forwarding and internal agreements are valid only for the freight forwarder industry.

Scales

A scale in SAP TM is used to define a parameter that then defines a rate. You have the option to create scales directly from rate tables. Each scale stands for one parameter or value on which the transportation costs for various scenarios to be calculated depend (e.g., distance, weight, product type, and incoterm). The scale varies from scenario to scenario.

For example, if a rate depends on distance and weight, you must define a separate scale for distance and for weight. The distance and weight scales are then used to define the rate. To create a scale in SAP TM, execute transaction code NWBC and follow menu path Master Data > Charge Management > Scales. Expand the Scales folder and double-click Create Scale. This action opens the screen shown in Figure 4. Populate the fields as shown and then click the save icon.

Figure 4

The scale creation screen

Rate Tables

Rate tables contain prices for a certain transportation service that is only valid for the period as defined by its validity. A rate is listed in a rate table, and in SAP TM, it is possible to maintain up to nine dimensions in a rate table. Therefore, rate tables contain actual rate values that are required for calculating transportation charges based on these rates. After you define the rates, the settlement process is triggered in SAP ERP Central Component (ECC) and the charge settlement in ECC can be completed. One rate table stands for one rate. During charge calculation, one rate value is read from the rate table dependent on one or multiple parameters.

This value can then be used further for charge calculation according to calculation rules and other settings as defined in the charge calculation sheet. SAP TM also provides the option to generate scales within a rate table. To create a rate table in SAP TM, execute transaction code NWBC and follow menu path User Menu > Master Data > Rate Tables. Expand the Rate Tables folder and double-click Display Rate Table Definition. This action displays the screen shown in Figure 5.

Figure 5

The rate table creation screen

Populate the following fields shown in Figure 5:

• Rate Table: This field is for the rate table number generated and is the unique identifier (e.g., 342).
• Description: In this field you enter a description of the rate table.
• Charge Usage: In the field you select the type of charge usage from a drop-down list (e.g., Customer and Service Provider). The charge can be used for both customer billing and vendor invoicing during forwarding settlement and freight settlement creation.
• Charge type: This field displays the various charges that are used for settlement. The charge type is used for integration with ERP.
• Charge Category: This field is for the category of charge that is populated from charge type definition.
• Charge Subcategory: This field provides further classification of the charge category that is populated from charge type definition.
• Positive/Negative: This field indicates whether the charges are positive or negative. It is populated from charge type definition.
• Value Type: In this field you select an option from a drop-down list

Calculation Sheets

The calculation sheet combines the charge types permitted for a document and the sequence in which the system takes these charge types into account during the calculation. The system uses the calculation sheet to specify which transportation charges to calculate and how to calculate them. This data helps you to bill customers for transportation services and to pay suppliers or carriers for subcontracted transportation services.

The calculation sheet contains line items, and each line item can result in a calculated amount. To create a calculation sheet in SAP TM follow menu path User Menu > Master Data > Charge Management > Calculation Sheets. Expand the Calculation Sheets folder and double-click Create Calculation Sheet. This action displays the screen shown in Figure 6.

Figure 6

The charge calculation sheet creation screen

Click the General Data tab and populate the following fields shown in Figure 6:

• Calculation Sheet: In this field you enter a number that is an identifier that helps you to denote the specific charge calculation sheet you are creating.
• Description: In this field, you enter a description of the charge calculation sheet.
• Charge Usage: This field is important because it identifies for which application the calculation sheet is used (i.e., customers, vendors, both customers and vendors, or neither customers nor vendors).

Note also that in the Items section of Figure 6, you need to enter the items by clicking the Insert button. This item includes the insertion of charge types, such as base freight or fuel surcharge. The items also indicate the level of charge element in the calculation sheet.

You also populate these two fields in the Items section:

• Instruction Type: In this field, you enter the level and rules behind charge calculation. It mainly denotes the correlation between the charge type and indicates whether it represents a total charge or not.
• Charge Type: This field indicates the various charge elements involved.

Based on the above process, charge calculation can be triggered in various ways:

• Manually by clicking the Calculate charges button in various SAP TM business documents, such as a forwarding order, a freight order, or a freight booking
• Automatically via a report for mass charge calculation
• Automatically as soon as a settlement document is generated
• Automatically when recalculating credit memos

If business scenarios and requirements are such that the shipper or LSP wants to model a more sophisticated logic for selecting the correct agreement and calculation sheet, then SAP TM allows you to maintain and assign Business Rule Framework+ (BRF+) rules. Furthermore, SAP TM provides Business Add-Ins (BAdIs) for contract determination. To access these BAdIs, follow menu path SAP Transportation Management > Transportation Management > Business Add-Ins (BAdIs) for Transportation Management > Master Data > Agreements. After you expand the Agreements folder, three BAdIs are listed:

• BAdI: Determination of Duplicate Business Documents
• BAdI: Independent Agreement and Calc. Sheet Determination
• BAdI: Agreement and Calculation Sheet Filter

Click the execute icon beside any of these BAdIs to access them.

Quick Quote Functionality Specific to Air for Contract Rates

Quick quote functionality was introduced from SAP TM 9.0 specific to air scenarios. This functionality was used so that the LSP users can provide an approximate cost of transportation between two locations. Therefore, during the order-taking phase, the quick quote functionality is used to determine the cost of transportation, but later, the logistical data is updated at the time of finalizing the order or during the planning phase. Similarly from TM 9.0, the quick quote functionality can be used for selecting the carrier and checking out the buying rates.

Consider the following business scenario in which this functionality can be used: The customer service executive or the operations or purchasing executive needs to be able to compute and provide a rough estimate of the customer charges, select a carrier, and check out purchase rates based on minimal data. The minimal data required to set up this functionality on the ordering side for a freight forwarder is sales organization, source and destination location, and item details.

On the purchasing side, however, the purchasing organization, carrier, and locations are mandatory. Note that the minimal data used for getting the quick quote functionality is transient in nature and is not stored in any database. Therefore, you cannot generate a forwarding order, freight order, or freight booking from a quick quote.

In Support Package 02 the quick quote functionality has been enhanced to support freight estimates using contract ratings. Therefore, you can calculate unit load device (ULD) or loose cargo charges for general cargo. To determine a quick quote on the selling side (i.e., in a forwarding document) in SAP TM, follow menu path Forwarding Order Management > Charge Estimation > Estimate Forwarding Charges. After you double-click Estimate Forwarding Charges, a pop-up screen appears (Figure 7) in which you click the icon in the Transportation Mode field and select a mode from the drop-down list of options.

Figure 7

The initial screen to estimate forwarding charges

After you select a transportation mode, click the Continue button. This action opens a screen shown in Figure 8 that displays the details for the transportation mode you selected in the pop-up screen in Figure 7.

Figure 8

Mandatory fields to populate to estimate forwarding charges

The charge calculation had various features incorporated from SAP TM 9.0 specific to an air scenario because all flight arrival or departures and various air consolidation features in SAP TM processes should adhere to IATA rules. 

In the screen shown in Figure 8, populate the mandatory fields to estimate charges. These fields include Sales Organization, Source Location, and Destination Location. After you enter information in these fields, click the Calculate Charges button to estimate the charges for the forwarding order.

After you click the Calculate Charges button in Figure 8, click the Charges tab and then click the Insert button to display the item details (Figure 9).

Figure 9

Item details

The minimum and maximum settings functionality is a very common process adopted by many LSPs whereby based on load weight, the LSP expects a certain minimum (min) and maximum (max) amount on the charge calculation. Therefore, if an LSP or a carrier wants to put a min or max limit on a charge calculated in a freight order, freight booking, or forwarding order, then this functionality needs to be triggered within the SAP TM system.

For example, an LSP charges a customer a variable rate of $20 per 2000 KG subject to a minimum of $100 and a maximum of $200. This would simply mean that the LSP expects a minimum revenue of $100 and a maximum of $200 from the load. So in this case, if the load is less than 10,000 KG the LSP expects a min of $100, and if the load weighs more than 20,000 KG the max amount is $200. In the earlier versions of SAP TM (8.0 and 8.1), it was only possible to maintain min-max value in a rate table, but in SAP TM 9.0 and higher, this setting is applicable for a TCCS item for charge types with an instruction type of standard.

Also the min-max functionality should have same currency as the TCCS item rate currency, and it can be set on both absolute and % charge lines. In a TCCS, the charge determination is done manually, and then in that case, the min-max functionality does not work. In order to trigger this functionality the creation of forwarding or freight agreement and other TCCS parameters needs to be done beforehand.

To create a TCCS, execute transaction code NWBC and follow menu path Master Data > Charge Management and Service Product Catalogs > Calculation Sheets > Create Calculation Sheet. In the initial screen (not shown) click the Continue button to display the charge calculation sheet creation screen (Figure 6). To create a TCCS enter a value for the calculation sheet in the Calculation Sheet field, describe the calculation sheet in the Description field, and select an option for charge usage in the Charge Usage field (Figure 6).

In the Items section enter an Item by clicking the Insert button and selecting an item. Enter a line number (you enter this number in the field under the Li… heading in Figure 6), an instruction type (you enter this data in the field under the Instruction Type heading in Figure 6), and a Charge Type. Click the save icon to save the document. Now expand the Items section of the calculation sheet create screen (Figure 6) and double-click the line for the TCCS you just created (in my example it is line 20). This action displays details of the TCCS in the next screen (Figure 10). Now you input the minimum and maximum amount values. For my example, in the Rate tab (Figure 10), a rate amount and calculation rule for this charge type in the TCCS need to be entered so that the functionality works. For my scenario, the rate amount or currency is $20. The calculation rule price unit is 2000, and the unit of measure is kg. The calculation base is GROSS_WEIGHT. Values also need to be entered in the Minimum Amount and Maximum Amount fields (e.g., minimum 100, maximum 200). Click the save icon to save your data.

Figure 10

Display minimum and maximum amounts in the charge calculation sheet

Rates based on transportation zone is an important functionality within SAP TM charge management. The rate computation based on transportation zone was not available in SAP TM 8.0 and 8.1. Locations and transportation zone are the master data in SAP TM. Therefore, a single location can always be present in a multiple transportation zone because when you create a transportation zone, you can add a location postal code or region to a transportation zone. As a result, confusion in charge calculation arises when a single location is mapped to a multiple transportation zone.

Consider the following example: Imagine a shipment is moving from Bonn to Berlin, and location A (Bonn) is mapped to transportation zone 2 (Germany zone TZ-DE) and Bonn zone TZ-BN.

Location B (Berlin) is also mapped to transportation zone 2 (Germany zone TZ-DE) and Berlin zone TZ-BE.  For this scenario, you maintain a rate table as shown in Table 1.

In the earlier versions of SAP TM, based on the combination of the location in the transportation zone and rates maintained in the rate table shown in Table 1, the charge calculation computes an error if you try to use the SAP TM system to determine the rate for transportation between Bonn and Berlin locations. That is because there is no rate value maintained for this combination in the rate table shown in Table 1. However, from SAP TM 9.0 and higher, the charge engine does a multiple comparison and validation until it finds a field in the rate table that matches with the scale items in the corresponding locations. With this feature, the engine first compares the Germany zone with the rate maintained. It then finds none, so it searches with the Berlin zone, finds a rate, and returns that rate. Charge calculation is successfully done.

Also from SAP TM 9.0, SAP introduced the feature of multiple charge line insertion with a single click. This feature enables you to insert multiple lines in the charges tab of a forwarding order, freight order, or freight booking all at once instead of entering lines one by one. This functionality is only available for a manual charge type for which charges are not determined based on rate tables.

Consider an example in which due to an unexpected event (damage to the product), a charge has been levied in a freight settlement document. In the older versions of SAP TM, a charge calculation could not be computed if there was any delay in the execution of certain transportation process in integration with SAP Event Management. However, now in the new version, a charge parameter called delay has been added in the charge calculation process. Therefore, computation of demurrage charges is possible based on the delay in transportation process and this delay is calculated based on number of hours.

In SAP TM 9.0 and higher, SAP added a new option to the SAP TM system named Multiple Charge Lines. This option enables you to insert multiple charge lines of selected charge types into a forwarding order, freight order, or freight booking. To use the multiple charge lines functionality, click the Charges tab in a forwarding order or freight order. In the Charge Items tab of the screen that appears (Figure 11), click the Insert button and from the menu select Multiple Charge Lines.

Figure 11

The charge item overview screen

The system now displays a pop-up screen (Figure 12) that allows you to select multiple charge types by clicking the down arrow at the end of the Charge Type field and selecting an option. After you select the charge types that you want to use, click the save icon. The charges appear in the Charge Items tab of the corresponding forwarding order, freight order, or freight booking.

Figure 12

Method of charge type selection

The charge management component in SAP TM includes various functionalities for rail scenarios, but in this section, I describe the new functionalities (including rail) added when working on various scenarios in SAP TM as part of the charge calculation process.

When a transportation order is arranged and planned, every company or LSP needs to determine the correct parameters or factors based on which the correct charges and price can be calculated for the shipment. The charge computation is determined by various shipment-specific attributes that may not be initially possible to determine in the rate table. Therefore, it is important that all parameters and conditions be taken into consideration while determining price to transport products between various locations.

SAP decided to implement this functionality of charge calculation for shipment condition rather than one based on origin or destination location, weight, volume, and commodity. The charge calculation for shipment condition functionality required complete remodeling of BRF+ conditions, ultimately leading to correct charge calculation in forwarding order, freight order, or freight booking.

Conditions are used to map BRF+ applications. To create a condition execute transaction code NWBC and follow menu path Application Administration > General Settings > Conditions. Click the Create Condition link (Figure 13).

Figure 13

Create a condition

In the initial screen (not shown), enter data for the condition application name, condition type, and condition description. Click the save icon. This action displays the screen shown in Figure 14 in which you create conditions in the BRF+ application (condition type TCM_CALC) that the charge calculation is done based on the mode of transport and equipment group. Based on the condition application type BRF+, a decision table is opened as shown in Figure 10. Enter values based on various parameters maintained in the decision table.

Figure 14

The decision table used during the creation of a condition

You need to go to the rate table. Follow the navigation path and instructions in the “Rate Tables” section. In the screen shown in Figure 15, click the Insert Scale button to input the calculation base as a condition and then click the save icon to save the scale in the rate table. You maintain this condition in the rate table in which one of the dimensions should be CONDITION as shown in Figure 15.

Figure 15

Display the calculation base as CONDITION in the rate table

After the system conditions for mode of transport and equipment group maintained are found, the correct forwarding order is determined for all TRUE conditions. In case all conditions are untrue as per the BRF+ setting, then when you click the charge calculation button, no rates are determined based on conditions maintained. This new functionality helps to trigger the correct freight price determination for various scenarios and for multiple shipment conditions based on user requirements and business scenarios.

To help you understand the collective rate lookup on freight side functionality, consider a scenario that is applicable for a freight forwarding industry. In this scenario, an LSP has placed three orders to a carrier or service provider with different data, such as FO1:50 pieces, FO2:50 pieces, FO3:50 pieces with freight units assigned to a freight order. In SAP TM 8.1, the charge calculation when used for settling the three freight orders was based on an individual freight order.

However, from SAP TM 9.0 and higher, this functionality was extended so that the collective invoice for the three freight orders was determined based on the total number of pieces in the freight order (i.e., 150 pieces and charge computation was based on the overall pieces). To tackle this issue the existing grouping rule for resolution base was extended whereby the grouping rule is assigned to the TCCS line item. Two new flags were added in SAP TM 9.0 for a grouping rule:

• Group across orders
• Fall back required

To assign the grouping rule to the TCCS line item, execute transaction code NWBC and then based on various roles selected, follow menu path Master Data > Charge Management and Service Product Catalogs > Maintain Charge Calculation Rules. In the initial screen that appears, click the Grouping Rules for Resolution Base folder (Figure 16).

Figure 16

Maintain charge calculation rules

In the next screen (Figure 17), enter a description in the Description field and a name in the Group By field. For my example, enter Yes in the Group Across Orders field and No in the Failback Required field. Click the save icon.

Figure 17

Maintain grouping rules for the resolution base

Based on the above entries maintained when collective settlement is triggered from the freight order worklist, the amount computation is captured as a whole for all 150 pieces instead of individual 50 pieces for each freight order.

Synchronization Between Order and Settlement Charges

In older versions of SAP TM, you click the Follow Up button in a freight order, freight booking, or forwarding order to create the freight settlement or forwarding settlement. However, once the goods are received by the consignee, if there were any additional charges incurred such as demurrage, detention, or customs charges, then users used to manually edit the SAP TM business documents and updated freight documents and forwarding order depending on the business scenario. However, the new charges that were added did not update the corresponding settlement document, and the synchronization and consistency between the order and settlement documents were lost.

In SAP TM 9.0 and higher, this issue was resolved. The system can now update the charge amounts in settlement documents as well. To achieve this functionality in the configuration for a settlement profile, a new item was added whereby you need to select the Update Settl. Chrgs From Order (update settling charges from order) check box. To do this execute transaction code SPRO and follow menu path SAP Transportation Management > Transportation Management > Settlement > Define Settlement Profile.  In the screen that appears (Figure 18), select the Update Settl. Chrgs From Order check box and click the save icon.

Figure 18

Create a settlement profile

Agreement Determination Type

Agreement determination type functionality first became available in SAP TM 9.0 whereby a new configuration item was added under the charge profile. Agreement determination requires lot of validation, and with regard to preconditions, it is really difficult to cross-check whether the agreement determined between the sales organization and the business partner was correctly proposed by system. With the new setup in SAP TM 9.0, the system automatically proposes a correct agreement between the business partner and the organizational entity based on various attributes and displays all available agreements at the same time. In case the system finds multiple agreements between the parties concerned, the system uses an algorithm to determine the correct agreement type.

The system used to calculate the final amount for all agreement items once the TCCS was assigned at an item level and then chose those agreement items that had the minimum or maximum amount for charge calculation.

After the entire list of the agreements is available with the minimum or maximum amount, you need to deselect the Eval. All Agreements check box. To complete this step, execute transaction code SPRO and follow menu path SAP Transportation Management > Transportation Management > Basic Functions – Charge Calculation > Basic Settings > Define Charge Profiles.  In the initial screen that appears (Figure 19), deselect the Eval. All Agreements check box and click the save icon. This step enables equal agreement determination to be done randomly in the SAP TM system.

Figure 19

Define a charge profile

When you are creating a freight order or a freight booking document to start the transportation execution process in SAP TM,  there can be multiple source or destination locations specified in the document based on the various items or products to be transported. This is applicable for multi-pickup or multi-drop scenarios. From SAP TM 9.0, you have the functionality whereby based on this multi-location scenario, the system can determine a rate based on locations specified in the item.

Consider the following example: Item A is picked up at location A and dropped at C. The weight of this item is 50 tons, and the rate is $90 per ton.

Similarly, item B is picked up at location B and dropped at D. The weight of this item is 100 tons, and rate is $100 per ton.

With the enhanced functionality, the total charge calculation to transport item A and item B is 90*50+ 100*100=$14,500 because charge calculation at item level was enabled to work both at the item and header levels.

From SAP TM 9.1 you have the option to determine an agreement based on a commodity code because it has been used as an attribute in the item level of an agreement. So assume you have a forwarding order in which package 1 has commodity code type IN with commodity code X, while product 1 within a package has commodity code type IN with commodity code Y.

While creating a forwarding agreement after the TCCS is assigned to the item level, you can either enter the commodity code as the whole code number or use a wild card as shown in Figure 20. Then as per the new functionality, the system compares the commodity code for the package or product with the commodity code of the item details and then selects the relevant agreement item.

Figure 20

The Commodity Codes tab of the forwarding agreement

Enter the forwarding agreement and after inputting all the details at header level, such as organizational data, agreement type, and validity date, go to the item details of the forwarding agreement and input the charge calculation sheet. Click the Insert button to display item details and then click the save icon. After you click the item details of the forwarding agreement, you can view the Commodity Codes tab of the cargo item you entered in the agreement. In this screen you enter the Commodity Code type, Include/Exclude pattern, Range Setting, and Commodity Code From value (Figure 20).

In older versions of SAP TM (SAP TM 8.0 and 8.1), multiple rate hit conversion and calculation occurred only if the rate table had values that held the charges for various parameters and that were not available in the corresponding order documents. This scenario was mostly valid for air scenarios as per International Air Transport Association (IATA) rules. In SAP TM 9.0 and 9.1, the process remains the same, but there is a new parameter added in the SAP TM 9.0 and 9.1 under calculation base. Following the IATA guidelines, every airline industry provider for a freight forwarding industry scenario should have the option to provide an automatic rate even though there can be a single generic entry. LSP users should be able to view the missing dimension details using the multiple rate hit pop-up. So one prerequisite is that the rate table should have a dimension called IATA note.

To create a dimension called IATA note to use as the calculation base, execute transaction code NWBC and follow menu path Master Data > Charge Management > Rate Tables > Create Rate Table Definition. When you create a rate table, after the scales are generated manually, you can select the scale and then enter the calculation base (Figure 21). After you enter the data, click the save icon.

Figure 21

The calculation base used for the IATA note

To insert multiple rates in freight booking specific to an air scenario, execute transaction code NWBC and follow menu path Freight Order Management > Create Air Freight Booking. In the screen that appears, click the Charges tab and click the Multiple Rates button (Figure 22).

Figure 22

Multiple rates in freight booking

This action opens a pop-up screen (Figure 23) that displays the description of the scale items in the multiple rate hit scenario so that you can select the proper rate. After you select the proper rate, click the Continue button and then click the save icon.

Figure 23

Description of scale items for a multiple rate hit scenario

Handling codes are important components that are assigned mainly to commodity codes. Assume that a customer order contains a commodity type Roses=perishables and because the rose flower is very delicate, special handling is required for this commodity. To handle different handling codes, different charges are applicable and this functionality is readily available in the later versions of SAP TM so that all rates in the calculation sheet for multiple handling codes are maintained.

One of the options is to maintain the handling code at the item level for the corresponding TCCS. However, the prerequisite is that the shipment document should also have the handling code at the header level. Note that if multiple handling codes are maintained at the shipment level and the user maintains the rate only for one handling code, then the charge calculation works only for the specified handling code at the item level maintained in TCCS.

To create a TCCS execute transaction code NWBC and follow menu path Master Data > Charge Management and Service Product Catalogs > Calculation Sheets > Create Calculation Sheet. After you incorporate the various charge types into the TCCS, you can select any charge type and then in the details area under Basic Data tab, you can enter the handling code to be used and then click the save icon to save the data (Figure 24).

Figure 24

Maintain the handling code in the TCCS

Handling codes can be maintained as scales in the rate table as well. To maintain handling codes as scales in the rate table, execute transaction code NWBC and follow menu path Freight Order Management > Create Air Freight Booking. In the screen that appears (Figure 25), click the Booking tab. In the Handling Codes section, populate the fields as shown in Figure 25 and click the save icon.

Figure 25

Maintain handling codes in air freight booking

Specific Commodity Code Rate for an Air Scenario

For an air scenario specific to IATA regulations, every commodity type has to be handled differently and hence based on these regulations, there should be a specific commodity rate (SCR) that should be applied differently for various items or commodities when air freight booking is created in SAP TM. Refrigerated and perishable products have different commodity types, so different SCRs should be applied as per IATA regulations. Commodity code type and commodity code should always be specified in air freight booking for the cargo item. Per actual business requirements, SAP TM maintains three different variations of a rate: GCR (general cargo rate), ULD, and SCR (specific commodity rate).

GCRs consider different types of cargo being loaded in the aircraft.

ULDs are the equivalent of containers for an ocean scenario.

SCR-specific commodity rates are applicable for specific commodities. This rate is applicable for both The Air Cargo Tariff and Rules (TACT) maintained by the IATA and contract rating. It is identified by a rate class of C. Note that the commodity rate varies as per weight and is subjected to weight breaks (i.e., the rate reduces as commodity weight increases). The rate class is always printed on the airway bill generated from air freight booking. To complete this step, execute transaction code NWBC and follow menu path Freight Order Management > Create Air Freight Booking. Click the Charges tab and in the Air Waybill Printing field click the icon and select a rate class (e.g., T) from the drop-down list of options (Figure 26). Click the save icon to save your document.

Figure 26

Airway bill printing based on rate class in air freight booking

Note that if the system uses the value T (TACT) rating in that case it uses the commodity code maintained for the cargo in the air freight booking. However, for value C (the contract rate), you do not have the option to enter the rate value for the commodity code in the charges screen. That is because based on the contracted SCR rate for commodity code, the charge determination takes place. The SCR rating can happen in the following way:

There can be automatic calculation procedure designed based on access sequence or the user can manually key in the rate category for the SCR rating on the charge line item in the rate table or the calculation sheet.

Thus, the entire concept of SCR is applicable only from SAP TM 9.0 so that all parameters and regulations pertaining to IATA are met and executed.

SAP TM 9.0 and 9.1 have a couple of new enhancements in the charge management area specific to rail processes because functionality was missing in the older versions. They include stage level calculation with a different invoicing carrier and charge calculation based on a default route. SAP also added new fields in rail business documents and a new resolution base for charge calculation for active and passive vehicle resources.

Stage Level Calculation with Different Invoicing Carrier

Stage level calculation with different invoicing carrier functionality enables you to separate and invoice differently between an executing carrier (the business partner is responsible for the entire transportation of a product for a specific stage) and the invoicing carrier (the business partner invoices the LSP or shipper for the transportation process). In the Stages tab of the freight order for the rail process at every stage, you can maintain a different business partner for invoicing and executing carrier. When charge calculation is computed as part of the freight agreement reference, it is done based on the invoicing carrier.

To complete this step, execute transaction code NWBC and follow menu path Freight Order Management. In the initial screen (not shown), click Create Rail Freight Order. In the next screen (Figure 27), click the Stages tab and then click Executing Carrier to maintain the executing carrier value. Click the save icon to save the document.

Figure 27

Maintain the executing carrier in the rail freight order

Charge Calculation Based on a Default Route

In SAP TM based on rail scenarios, a railway company may subcontract its rail process based on whether cargo is to be picked up from specific customers. Routing and planning functionalities need to work closely with each other. In SAP TM 9.0 and higher, when the routing and planning functionalities are triggered, the system automatically defines its default route based on the master data settings and along with the default route for every stage executing carriers are also determined. Because charge calculation is possible for executing carriers as explained before for a rail scenario, freight agreement, TCCS, and rates are determined based on the default routes populated in the SAP TM business documents.

In the routing and transportation proposal, the total amount of the route along with the freight agreement and invoicing carrier for each route are included. The business user can select an individual or desired route, and based on that, charges are calculated and taken over into the freight order. Figure 28 is a sample of a routing pop-up screen in which both executing and invoicing carrier details are displayed.

Figure 28

Executing and invoicing carrier in the routing tab of rail freight order

To access the screen shown in Figure 28, execute transaction code NWBC and follow menu path Freight Order Management. In the initial screen (not shown), click Create Rail freight order. In the Routing tab of the next screen (Figure 28), click the Amount button and maintain the charge amount values for the executing and invoicing carriers. Click the save icon to save the document.

New Fields Added in the Rail Business Document

Since version 9.1, SAP TM  includes various new fields for rail scenarios related to the calculation base as this is an important component used in charge calculation. Figure 29 shows a highlighted field that has been added. To access this screen, execute transaction code NWBC and follow menu path Freight Order Management Rail > Create Rail Freight Order. In the initial screen (not shown) click Create Rail Freight Order. In the General data tab of the next screen, the railcar count details are specified (Figure 29). Click the save icon to save the document.

Figure 29

Maintain a railcar count for the rail freight order

The Railcar Count depends on the number of cars maintained in the rail freight order.

In the charge calculation sheet, a new calculation base field named NO_OF_RAILCARS (number of railcars) has been added (Figure 30). This field is also visible in the scales maintained in the rate table. To access the screen shown in Figure 30, execute transaction code NWBC and follow menu path Master data > Charge Management and Service Product Catalogs > Calculation sheets > Create calculation sheet. In the initial screen (not shown), maintain the required rates and scale bases. After the required rates and scale bases are maintained, you need  to ensure that for the specific scale, the calculation resolution base for NO_OF_RAIL_CARS is populated manually (Figure 30). Click the save icon to save the document.

Figure 30

The calculation base in the TCCS

The calculation date rule has been added at the TCCS item level so that system allows calculation of various charge types with different calculation dates.

From SAP TM 9.0 onward, a new resolution base Resource was introduced so that resource base charge calculation can be achieved. This was valid and applicable for both active and passive vehicle resources. However, there was no option at that time to selectively charge either active or passive vehicle resources. With SAP TM 9.1 this issue was also resolved by allowing the user to manually input either active (e.g., locomotive) or passive (e.g., railcar) vehicle resources. The introduction of a new resolution base enables the internal and external settlement process to be performed more accurately. To create a passive resource as a calculation resolution base, execute transaction code SPRO and follow menu path Transportation Management > Basic Functions > Charge Calculation >Data Source Binding for Charge Calculation > Define Resolution Bases (Figure 31).

Figure 31

Addition of a new calculation resolution base for a passive resource

To create an active resource as a calculation resolution base, execute transaction code SPRO and follow menu path Transportation Management > Basic Functions > Charge Calculation > Data Source Binding for Charge Calculation > Define Resolution Bases (Figure 32).

Figure 32

Addition of a new calculation resolution base for an active resource