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SAP – Sales and Distribution – Shipping – Lesson 15

SAP – Sales and Distribution – Shipping – Lesson 15

 

Previous Lesson

 

What is Shipping ?

Shipping component in system begins from Outbound delivery creation and supports a lot of functions. The important one’s are:

  • Picking
  • Packing deliveries
  • Processing Goods Issue

Following graphic illustrates shipping activities.

Shipping

Shipping involves activities like Picking, Packing and Goods Issue.

Picking

  • Picking process involves taking goods from physical storage location and transferring to picking area based on the pick list information, where it would be further processed for packing.
  • Picking information on exact quantity is then fed back in system on delivery.
  • Picking would be relevant for all materials except materials which are created for services.
  • Material is stored in plant in a storage location. In a delivery, to pick the material, storage location should get determined.
  • Storage location determination – Rules are defined so that different criteria can be used.

Picking location determination rules

  • MALA – Based on Plant and Shipping point. Storage condition can be additional criterion. Storage condition specifies requirements like refrigeration or high value materials requiring safe storage location.
  • RETA – Based on Plant and situation. This is used in Retail scenario.
  • MALA is mostly used as storage location determination rule.

Picking from storage location can be done using MM-WM, warehouse management function or can be done manually in the delivery

Packing

Packing is integral part of shipping. When delivery is being processed, delivery items can be selected for packing and assigned to handling units.

  • This functionality enables provision of packing information of delivery items to customer & helps in unloading.
  • This also helps in updating information on stock of packaging materials for organization, also allows for representation of multiple levels of packaging.
  • Like items packed in box, which is loaded on pallets and then on to truck.
  • Items are packed into ‘Handling Units’ (HU’s). Initially empty handling units are created in packing screen of delivery into which the materials are packed & information on weights and volumes are fed into it.
  • In Standard system material type for packaging materials is “VERP’.
  • The packaging materials can be added in delivery as an additional item created w/o reference to sales order.
  • Provisions are also made in standard system settings to process returnable packaging materials to cater to industry requirements.

Goods Issue

Immediately after goods leave company, goods issue for the materials needs to be posted in system.

Goods issue has following effect in system:

  • Warehouse stock of material is reduced by delivery quantity.
  • Value changes are posted to Balance sheet account in inventory management.
  • Requirements are reduced by equivalent of delivery quantity.
  • Serial number is updated.
  • Goods Issue posting is recorded in document flow.
  • Updates Billing due index for further creation of billing documents.

Goods issue is processed using following options:

  • Goods Issue posting for Individual outbound deliveries
  • Collective goods issue processing for multiple outbound deliveries in foreground mode.
  • Collective goods issue processing for multiple outbound deliveries in background mode.

Integration exists between the MM and FI modules to automatically post to relevant balance sheet accounts based on the movement type and transaction. For standard outbound delivery processing movement type ‘601’ is used.

Graphical representation of Goods Issue effect of material in delivery on system.

Goods Issue

 

Define Shipping point

This configuration setting enables to define the shipping point for goods issue to the customer.

Instructions

Menu Path: Logistics execution –> Shipping –> Basic shipping functions

Shipping point

Click clip_image002

Shipping Conditions

Shipping condition normally represents way or priority with which delivery is to be shipped. Shipping condition can differ based on customer, therefore it is maintained in the customer master (Sold-to party)

Shipping condition is determined in the sales document as per customer master of sold-to party but if a shipping condition is maintained for sales document type then the later takes precedence.

Example – for return orders, you can set shipping condition so that it is used always irrespective of customer master and thus determines same shipping point for all return orders.

Shipping Conditions

Define Shipping Conditions by sales document

This configuration setting enables to define the shipping conditions by sales document.

Instructions

Menu Path: Logistics execution –> Shipping –> Basic shipping functions

Shipping Conditions

Click clip_image005

Shipping Conditions

As in the example above, Rush order can always have shipping condition “10” – immediately.

Define Loading Groups

This configuration setting enables to define the loading group. Instructions

Menu Path: Logistics execution –> Shipping –> Basic shipping functions

Loading Groups

Click clip_image007

Loading Groups

It groups types of loading equipment's. Certain materials like heavy steel plates would require crane whereas auto components like axels would require forklift for loading.

As these equipment's may no be available in all shipping points, therefore this is also an important factor in determining shipping point.

It is maintained in material master – sales: general / plant data.

Loading Groups

Assign Shipping Points

This configuration setting enables to define the shipping point. Instructions

Menu Path: Logistics execution –> Shipping –> Basic shipping functions

Shipping Points

Click clip_image010

Shipping Points

As seen in the configuration above, shipping condition 02, loading group 0001 and plant 1000 determine shipping point 1000.

Determine Picking Location

This configuration setting enables to define the picking location.

Instructions Menu Path: Logistics execution –> Shipping –> Picking

To determine storage location for picking in the delivery,

following configuration is done

Determine Picking location

Some materials may not be relevant for Picking like service materials.

Click clip_image013

Determine Picking location

Define Picking Rules

For picking location determination, different rules can be set and can be assigned to delivery type.

Instructions

Menu Path: Logistics execution –> Shipping –> Picking –> Determine Picking Location

Picking rules

image

image

Picking rules

MALA rule: Picking location can be determined on the basis of shipping point, delivering plant and storage condition.

RETA rule: Picking location can be determined on the basis of delivering plant, situation and storage condition. This is used in Retail scenario

Mostly, MALA is used as rule for picking location determination.

Picking Location

Define Storage Condition

This configuration setting enables to define storage condition. Instructions

Menu Path: Logistics execution –> Shipping –> Picking –> Determine Picking Location

Storage condition

 

Click on clip_image020

Storage condition

Storage condition


Effect of this configuration Storage condition is defined in the Material master.

Define Packing Control

This configuration setting enables to define packing control.

Instructions Menu Path: IMG –> Logistics execution –> Shipping –> Packing

packing control

 

Need for packing can be controlled through item category Click Packing control by item category

packing control

packing control

Configuration for allowed packaging materials for a material is as below.

Define Material group for packaging materials

This configuration setting enables to define material group for packaging materials

Instructions Menu Path: IMG –> Logistics execution –> Shipping –> Packing

Material group for packaging materials

Click clip_image026

This material group is entered in the material master of product.

Material group for packaging materials

Define Packaging Material Types

This configuration setting enables to define packaging material types

Instructions Menu Path: IMG –> Logistics execution –> Shipping –> Packing

Packaging Material Types

Click clip_image028

Packaging Material Types

Define Allowed Packaging Materials

This configuration setting enables to define allowed packaging materials

Instructions Menu Path: IMG –> Logistics execution –> Shipping –> Packing

Packaging Materials

Click clip_image030

Packaging Materials

Example - With this configuration, product, which is having material group M010 in its master, can be packed only with

packing materials of packaging material types, V010, V020 and V060.

For packing in delivery, internally handling unit number is created.

Define Number Range for Handling Units

This configuration setting enables to define number range for handling units

Instructions Menu Path: IMG –> Logistics execution –> Shipping –> Packing

Number Range for Handling Units

Number range configuration for the same is as below.

clip_image033

Number Range for Handling Units

Click on clip_image035to maintain number range.

Item category group for packaging materials is VERP. Standard delivery item category is ZDLP

For post goods issue, configuration is done as part of MM and FI modules.

 

Shipping

Let us create sales order

Shipping

Click clip_image004

On the next screen, enter customer, requested delivery date and material as below.

Shipping

clip_image007[4]Click

Message displayed at the bottom of the screen.

clip_image008[7]

Let us check shipping point determined in the sales order.

Shipping

1000 is the shipping point determined.

Shipping point, 02 (standard) from sold-to party record of customer 1321, plant 1000 and loading group, 0001 (crane) determines

Delivery and Picking

Transaction code – VL01N

Enter shipping point, date for delivery creation and order number

Picking location

Click clip_image011[7]

Picking location

Picking location determined is 0001. Storage condition of P-102

Picking location

Picking location determination as per MALA rule

Picking location

 

Picking can be done manually if it is not warehouse managed by adding quantity in clip_image016 field.

P-102 is warehouse managed, therefore pick quantity column is greyed out. It will require transfer order to pick material from warehouse.

Menu path

clip_image017[4]

clip_image019[7]

clip_image020[4]

Click “Yes”

Delivery and transfer order are created

transfer order

Select “1 – include picking quantities in deliveries” in Adopt pick

quantity field and Click clip_image024

Click on – Generate TO item

Generate TO item

Click clip_image007[5]

Message of transfer order creation is displayed as below

transfer order

Packing

Transaction code – VL02N

Packing

 

clip_image033[7]

 

Packing

It shows picking status as “fully picked”

Menu path for packing

Packing

Packing

Click “Allowed Packaging material”

It lists allowed packaging materials for P-102.

packaging materials

Select PK-104. It belongs to packaging material type, V010, which is allowed for material group of packing materials, M010 (As per material master – sales / general plant data of P-102)

packaging materials

Handling unit number gets generated as per configuration.

Select both the materials and click clip_image043

Handling unit

P-102 does not now appear in “Material to be packed” section

Total weight (415 kg) is the sum of weight of packing material, PK- 104(135 KG) and material, P-102(280 KG). The weights for packing and material to be delivered are copied from material master.

Example: weight of PK-104

Tare weight (135 kg) is the gross weight of PK-104 Loading weight (280 kg) is the gross weight of P-102

Double click on handling unit line and detailed data is displayed.

Click clip_image046

Delivery is saved and material document (MM) is created

Handling unit

Display document flow for the sales order 10647 Transaction code – VA03

With goods issue, inventory and accounting is updated.

Cancellation of goods issue is possible

reverse goods issue

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