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Author's profile photo Leandro Nascimento

LE-TRA – Config Guide for Shipment & Shipment Cost Document – Part II

This blog post is a continuation of:

LE-TRA – Config Guide for Shipment & Shipment Cost Document – Part I

As I mentioned in this post’s Part I, I wrote this configuration guide for Logistics Execution Transportation (LE-TRA) sometime ago and I decided to share with this community. The whole post was divided in 3 Parts due to a SCN number of Images limitation (maximum 20 images per post). Between Parts I, II and III, the posts are more focused on freight payments and Shipment Cost Document.

I divided this blog post in 3 parts:

I. Transportation – Shipment

II. Transportation Shipment Cost Document (this post is covering part II)

III. Transportation – Shipment Cost Document (Cont.)

I hope you enjoy reading as much as I enjoyed writing and I hope you find this helpful. If you like it, I appreciate you rating this blog post.

Index / Content

Part I

  1. SAP Language
  2. Transportation – Shipment
  3. Master Data
  4. Maintain Transportation Planning Point
  5. Define Routes
  6. Define Modes of Transport
  7. Define Shipping Type
  8. Defining Transportation Connection Point
  9. Defining Transportation Zones
  10. Define Transportation Groups
  11. Setting up Weight Groups
  12. Define Routes and Assigning Routes
  13. Definition of routes
  14. Maintain Stages for all Routes
  15. Determining Routes
  16. Route Determination in Sales Order
  17. Configuration of Shipments
  18. Maintain Transportation Relevance
  19. Set Up Transportation Planning Points
  20. Define Shipment Type

Part II (this post is covering part II)

  1. Transportation – Shipment Cost Document
  2. Shipment Cost Document Structure
  3. Define Date Rules
  4. Define and Assign Tariff Zones
  5. Define and Assign Activity Profile
  6. Define Shipment Cost types
  7. Define Item Categories:
  8. Assign Shipment Cost Type and item categories
  9. Maintain Shipment cost relevance and default for shipment cost type
  10. Define shipment cost relevance for shipment type
  11. Pricing

Part III

  1. Define and assign shipping type procedure group
  2. Define and assign item procedure group
  3. Define Service Agent Procedure Group for Shipment Costs
  4. Maintain Price Procedure
  5. Define Pricing Procedure Determination for Shipment Costs
  6. Maintain Condition Type
  7. Settlement
  8. Assign Purchasing Data
  9. Account Determination
  10. Group Together Valuation Areas
  11. Define Valuation Classes
  12. Automatic G/L account Determination
  13. Automatic determination of CO assignments
  14. Business Process Procedure
  15. Create transportation condition records
  16. Create Delivery Document
  17. Create Shipment Document
  18. Creating Shipment Cost Document & Cost Settlement
  19. Effects of Shipment cost settlement and related documents
  20. User-Exits
  21. BADIs

Transportation – Shipment Cost Document

Before we move to the Shipment Cost Document (aka SCD or Shipment Cost) configuration, let’s briefly discuss the role that this document plays in Transportation.

The shipment Cost Document is created in reference to a Shipment Document where one or more stages are relevant for Shipment Costs.

When the Shipment Cost Document Item is assigned to an item category that is relevant for settlement, you can take advantage of additional features that includes freight cost calculation, accrual and invoice payments.

Usually, you have the freight rates agreed with your logistics service agents and those rates can be maintained upfront in the system and calculated using the pricing and conditions functionality. If rates are maintained in the system, they will be calculated regardless the item category been relevant for settlement or not, but with the item been relevant for settlement you can forward the shipment rates for FI/CO (GR/IR accrual, Cost elements assignments, purchase order and service entry sheet posting, Invoice verification and etc).

The reference to the shipment cost calculation is the shipment document, but the rates that are calculated based on the condition and pricing procedure are stored in the shipment cost document.

Shipment Cost Document Structure

The Shipment Cost Document is composed by: Header, Item and Sub-item.

  • The header as you can imagine, contains data that is valid to the whole document and items, such as processing status, who created or changed the document, what is the document’s reference (the shipment number) and etc. The header also brings the Shipment Cost Document Type, which you can define to each type different processing rules and settlement procedures. See more below how to do that at Define Shipment Cost types section.

  • The item(s) contain data required to the freight calculation like who is the service agent, the invoice presenter, the pricing date used for calculation, settlement date, item status and etc.  See more below how to configure it at Define Item Categories section. The items will refer to the header, of course, but they are also assigned to a specific Shipment’s stage. That helps for example when you have to charge certain costs that refers to the whole shipment or charges that refers only to a certain shipment leg (see section Assign Shipment Cost Type and item categories for more details).

  • The sub-item(s) is where price is assigned. The sum or all sub-items will determine the total cost of the shipment. The cost is calculated via Condition Records using condition types. The condition types can vary their characteristics to cover your business needs, where you can define the calculation base per whole leg’s weight for example or based on the Handling Unit/Shipping Unit (pallets, trucks, container and etc.). You can also use scales to meet the prices agreed with your service agent.

Define Date Rules

Here you create “Date Rules”. They are used to determine what are the dates to be taken in consideration when a shipment is created, to the Pricing Date, Settlement Date. Since you may have different Shipment Item Types (Item Categories), they may have different rules to the dates, if so, you can create different rules here and assign them to the Shipment Item Type.The dates will come from Shipment’s deadlines dates (either actual or planned dates).




SPRO > Logistics Execution > Transportation > Shipments Costs > Basic Functions > Define Date Rules











Define and Assign Tariff Zones

Here is where you will inform the tariff zones along with their respective postal codes areas assigning to the tariff zones for each transportation planning point. You can use the Tariff Zones in the shipment cost calculation, based on a region (defined by a set of Postal Codes) assigned to a given Freight Agent.




SPRO > Logistics Execution > Transportation > Shipments Costs > Basic Functions > Define and Assign Tariff Zones




Define and Assign Activity Profile

The profiles are very useful to calculate shipment cost document during the sales order creation to allow have an estimated freight amount.




SPRO > Logistics Execution > Transportation > Shipments Costs > Define And Assign Activity Profiles



Profiles are assigned based on Shipment Type and you can define different profiles depending on the Shipment’s status.


Define Shipment Cost types

In many businesses situations, it is common to have different needs for settlement procedures to the shipments. To handle those different needs, you can create different Shipment Types and assign them to their respective shipment types.




SPRO > Logistics Execution > Transportation > Shipments Costs > Shipment Cost Document > Shipment Cost Types and Item Categories



The Shipment Cost type allows define what number range is going to be used, what is the status that the shipment’s deadlines needs to reach to allow the SCD creation. It is my personal suggestion that makes more sense to define that the Shipment must be in status 6 – Shipment Started, until a Shipment Cost Document can be created. That guarantees that the Freight document (SCD) will only be created if the Goods really left the plant. This last one is controlled via Ov.stat. Shipmt indicator.



Define Item Categories

The Item Categories (shipment cost item types) contains settings for calculation and settlement of a shipment’s stage/leg.




SPRO > Logistics Execution > Transportation > Shipments Costs > Shipment Cost Document > Shipment Cost Types and Item Categories



In the box Calculation you can define the Date Rules (see more above about date rules) that will be used to pick the pricing date. You will also be able to define a partner function that the item category will be allowed to use for and the item determination group, which plays an important role in the pricing automatic determination.


In the box Settlement you will see the following:

Cost Distribution > Cost distribution CO


This is to define in what level the cost distribution of shipment costs will be allocated during account assignment and document posting.

The following levels are possible to select:

  1. Shipment cost item
  2. Delivery
  3. Delivery item

You will be able to restrict the level of cost distribution using the field Origin of CO in this same configuration screen.

If you intend to use COPA (profitability analysis) it is important to know that the Cost distribution B (Delivery) or C (delivery item) must be selected, so the Profitability Object can pull the data from Delivery or Delivery Item, since the Shipment Cost (A) do not hold data that is used to the CO-PA Characteristics.

Account Assignment Category


The account assignment category is the cost collector that will be used (for example:cost center, Profit Segment, Account Number and etc). Note that even if you use for example the Profitability Segment, the costs will still be posted “statistically” to cost center, and it will be available to read in the cost center’s report S_ALR_87013611. The available options are:

9              Unknown

A             Asset

B             MTS prod./sales ord.

C             Sales order

D             Indiv.cust./project

E             Ind. cust. w. KD-CO

F              Order

G             MTS prod./project

K             Cost center

M            Ind. cust. w/o KD-CO

N             Network

P              Project

Q             Proj. make-to-order

T             All new aux.acc.***.

U             Unknown

X             All aux.acct.assgts.

Z             Profitability Segmen

Settlement Date


Once again, check the Date Rules explained more above. Here you will assign one of the Date Rules you have created and this is the date that will be taken in consideration for “settlement” which is the accounting posting date (to the GR/IR accrual document)

Origin of CO assignments


The options that you can select for Origin of the CO assignments are: A – General ledger account, B – Sequence: Delivery, Sales Order or C – Sequence: Delivery, order, G/L account. In case you use profitability segment, it is recommended to select “C” so you can have the Sales Order and Delivery Document information flowing to CO-PA characteristics.

Relevant for settlement


Here is where you indicate if the shipment cost item is relevant or not for “settlement” (posting the GR/IR accrual). If you want to have the system creating PO’s automatically with subsequent GR/IR accruals, Service Entry Sheet, all behind the scene, automatically, you must select X here.

Purchase Order Generation


At the time that the shipment cost is posted (transferred), SAP can create a PO (or assign an existing PO depending on the configuration). Here are the options you can select: Field in Blank – Do not generate purchase order / A – Generate purchase order for validity period of 1 day / B – Generate purchase order for validity period of 1 week / C – Generate purchase order for validity period of 1 month.

Item Categories

Create as many as you need or use the standard delivered. Here is one example of what I had to do:

YE01       Add cost Outbnd

YO01      Out Frt Truck

YO02      Out Frt Rail

YO03      Out Frt InlndWter

YO04      Out Frt Ocean

YO05      Out Frt Air Cargo

YO06      Out Frt Air Pssng

YO07      Out Frt Others

Y002       General costs

Y003       Insurance

Y004       Cleaning

Y005       Load transfer

Y006       Customs

YFOR     Forwarder Cost

YIAD      Inbound Add Csts

YINB      Inbound Frt Csts

YINT       Interco. Freight

Assign Shipment Cost Type and item categories




SPRO > Logistics Execution > Transportation > Shipments Costs > Shipment Cost Document > Shipment Cost Types and Item Categories




To each Shipment Cost Type, you need to do the proper assignments of Item Categories to specify when and how those item types will be pulled into the Shipment Cost Document. You also assign the Valuation Class, which plays an important role in the G/L account determination.

The Rec.indic. is directly tied to the stage type (in the shipment) and depending on the stage type (if it is based on Shipment Header, Shipment Leg, Load Transfer point and etc.) you assign what is the correct Item Type/Item Category to be used in the shipment cost document.

You can also select if to that shipment type, a given item category will be automatically assigned or if manual assignment is allowed, or even if the item category can shows twice in the same document.

Maintain Shipment cost relevance and default for shipment cost type




SPRO > Logistics Execution > Transportation > Shipments Costs > Shipment Cost Document > Shipment Cost Relevance and Default for Shipment Cost



Here is where you will assign the shipment cost types to the respective shipment types:



Define shipment cost relevance for shipment type




SPRO > Logistics Execution > Transportation > Shipments Costs > Shipment Cost Document > Shipment Cost Relevance and Default for Shipment Cost



In this configuration you will indicate in what level the shipment cost needs to be calculated.For example, if to a given shipment type you select “leg” that indicates that the shipment stage is relevant for shipment costing but not the shipment header. You can’t “post” your shipment cost document to be ready to finance if the Shipment type is not relevant for shipment cost.



Before you create a SCD, you must have the pricing procedures assignment with their respective set of conditions and to have rates maintained for those conditions. If rates are not maintained, the document will still be created (with 0.00 amount) but not transferred/posted. The whole Shipment cost calculation is based on the SAP Condition Technique. The Picture below shows how the Condition Technique operates.


The condition technique, condition types, scales, pricing procedures and their main characteristics follows the same concept of pricing procedure for other SAP documents. We will not spend much time here on this topic as there are many other sources for that. Later I will work on some examples and explanation for this topic and update it here.

This is the end of the Part II. Transportation – Shipment Cost Document. Check here the Part I. Transportation – Shipment and here the Part III. Transportation – Shipment Cost Document (Cont.)

If you liked, please, rate this blog. Thank you.

Leandro da Pia Nascimento

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      Author's profile photo Former Member
      Former Member

      It is Very Good Informative in LE-TRA

      Author's profile photo Former Member
      Former Member

      Hi Leonardo,

      thank you very much for the very detailed explanation.

      I would like to ask a question regarding condition types. Should all the condition types in pricing procedure have the same calc base?

      So when I check subitems.. these conditions with calc base delivery item are inactive on delivery level. And another way around.


      Cond type1 (freight rate) - Cacl base Delivery

      Cond type2 (VAT) - calc base Delivery Item.


      When I check on delivery level in the shipment cost document, Cond Type 1 is active, Cond type 2 is inactive, eventhough its calculated. Total amount does not include VAT.

      When I check on Delivery Item level, Cond Type1 is inactive, Cond Type2 is active, but because it should be calculated based ont Cond Type1, which is inactive here, Cond Type2 is 0.

      So Eventually the total shipment cost does not include VAT.

      Is it a standard system behavior?

      Thank you!


      Author's profile photo Leandro Nascimento
      Leandro Nascimento
      Blog Post Author

      Former Member

      Not necessarily the same Calculation Base, I use Handling Unit in most of the freight rates, but I group them by Shipping Material types. Some times I have a mix on my pricing procedure. You have to check in the pricing analysis why Condition 2 is inactive while condition 1 is active. You have the pre-requisites and formulas in the pricing procedure to adjust the behavior of the conditions as well.

      Author's profile photo Denis Vieira da Silva
      Denis Vieira da Silva

      Bom Dia, Leandro
      tudo Bem?

      Excelente post.

      Estou tentando criar um processo de custo de frete para centro de custo classificação contábil "K", porem sem mexer na configuração standard do SAP, na categoria "U".  Realizei toda a configuração, porem ainda tenho problemas no momento da geração da P.O. Eu preciso criar uma P.O para centro de custo, sem a necessidade de folha de serviço, e sem derivação para CO-PA. Porem quando estou gerando o pedido, e em tempo de debugue, estou preenchendo os campos KNTTP = "K", e SAKTO = Conta razão, e KOSTL = centro de custo, o sistema apresenta uma mensagem de erro, que não foi possível determina a conta razão.

      Nesse caso, eu teria que fazer um ponto Z, saindo do processo Standard, e chamando a BAPI_PO_CREATE1?

      Preciso dessa ajuda, pois não queria sair desenvolvendo sem saber se é realmente a unica opção.






      Author's profile photo Kapil Sharma
      Kapil Sharma


      we required only service PO should be created and not the service entry sheet.

      since we are taking care of it from supplier portal.

      So is this Possible ? what is way ?

      Author's profile photo Leandro Nascimento
      Leandro Nascimento
      Blog Post Author

      The SES is a piece of the accrual process. You can do an accrual for freight without the SES.

      If you want to look a way to suppress the SES, I would recommend to look one of the User Exits or BADI's below:



      • V54B0001 Shipment costing: Configure pricing
      • V54B0003 Shipment Costs Calculation: Determine Rate Type and Cur
      • V54B0004 Shipment Cost Calculation: Determine Status
      • V54C0001 Shipment costing: Description(s) shipment cost item(s)
      • V54C0002 Shipment costing: Create shipment cost sub-items
      • V54C0003 Shipment Costs Processing: Determine Invoicing Party
      • V54C0004 Shipment Costs Processing: Determine Loc. for Tax Invoi
      • V54D0001 Shipment Costing: Determining the Tax Countries
      • V54KSFRC Determining the factors for apportionment of shipment c
      • V54P0001 Extended Function Codes for Shipment Cost Information
      • V54U0001 Shipment cost processing: Check whether changes made
      • V54U0002 Check shipment costs for completion
      • V54U0003 Specification of shipment cost number
      • V54U0004 Formatting for update of new objects (shipment costs)
      • V54U0005 Updating new objects in shipment cost processing
      • V54U0006 Shipment Purchase Order - Header Data Supply
      • V54U0007 Shipment Purchase Order - Item Data Supply



      • BADI_SCD_ACCTG Call During Shipment Cost Account Assignment
      • BADI_SCD_CREATE When Generating a Shipment Costs Document
      • BADI_SCD_CREATE_CHCK For Checks When Creating a Shipment Costs Document
      • BADI_SCD_PO_SELECT Call for the Purchase Order Item Determination
      • BADI_SCD_PROCESS_CHK For Checks During Shipment Costs Processing
      • BADI_SCD_SAVE When Saving Shipment Costs Documents
      • BADI_SCD_TRANSFER For Transferring Shipment Cost Items
      Author's profile photo Braj Shrivastava
      Braj Shrivastava

      Most complete document I found till date on Shipment cost...Thanks for sharing knowledge with everyone.

      Author's profile photo Sudhanshu Sharma
      Sudhanshu Sharma

      This is not a document but Bible of SD Shipment process. Thank you !

      Author's profile photo sameer kumar
      sameer kumar
      • We have a commercial need to settle the shipment cost under the Freight PO.
        According to the current configuration, we are receiving costs from non-SAP systems and updating them in the shipment cost document with different conditions, and the costs are co-solidated in the shipment level posted cost into the FO.
        Now, the business is requesting that any additional charges sent from no sap to sap be reflected in the separate condition cost in the shipment level, such as base price one condition and additional driver charges in one condition level. The shipment cost and condition values should be reflected in the FO level as well.
        Could you please tell me how to accomplish this?