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Author's profile photo Mrinal Kanti Roy

Service order in embedded Transportation Management of S/4HANA 1809 Release

There is a requirement in one of my S/4HANA projects that the business places separate Purchase orders to different vendors for activities like ‘Customs clearance’, ‘Unloading’, ‘Warehousing’ etc when the Goods are transported from a vendor or to a customer. These activities are not carried out by the carrier who usually takes care of transportation.

Explored the concept of Service Orders in embedded TM which seems to be meeting the requirement  and hence thought to share the same in this blog.

Below image displays a typical import scenario with Ocean booking.

Separate service orders can be created on Freight booking or Freight order (depending on the actual scenario) for different services with different vendors. Charges for these  services can be calculated through usual Freight agreement , charge calculation sheet etc. Once the charge calculations are done and services are complete, then the Freight settlement document can be created which can subsequently be transferred for creation of Purchase order / Service entry sheet. Below image shows 2 service orders and also shows that the vendors for these service orders and the carrier (executing the transportation) are different.

These images are from embedded TM of S/4HANA 1809 release. The above scenario is for an import scenario with multi mode transport . It can also be applied for Export or domestic transports as well with embedded TM.

Also like to highlight that

  • This Service order functionality is not part of ‘Basic TM’ and use of Service order in embedded TM needs additional license for ‘Advanced TM’
  • Charge calculation is generally set at stage level for Freight order / booking, however charges for service order is carried out at Header or item level . BADI /SCMTMS/TCC_CALC_LEVEL needs to be implemented for Charge calculation of Service order to default the calculation level to Header or item (depending on the use case).




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      Author's profile photo Jai Muripindi
      Jai Muripindi

      Hello Dear...

      Can you, Please send documentation of transport management !!!

      Actually, in ECC, there is an option to pay the freight charge to the specific freight vendor with reference to the purchase order or ERS.

      But In S4hana, there is no option to pay the freight charge to the specific freight vendor for both Purchase order and ERS.

      Thank you







      Author's profile photo Gonzalo Alvarez Mejias
      Gonzalo Alvarez Mejias

      Hello Mrinal Kanti Roy, do you how can we post these costs with basis license? Into the old LE-TRA module we can calculate aditional cost like custom clearance, unloading, cleaning, etc.

      Best regards & thanks in advance

      Author's profile photo Mrinal Kanti Roy
      Mrinal Kanti Roy
      Blog Post Author

      Hi Gonzalo,

      Simple freight charges / cost can be posted with 'Basic TM' , however complex freight charges like event driven or specific charges for air / ocean need additional license or 'Advanced TM'.



      Author's profile photo Gonzalo Alvarez Mejias
      Gonzalo Alvarez Mejias

      Hi Mrinal Kanti Roy, I don´t think that a cost of unloading or custom clearance was a compex charges, it is the most common scenario in transportation process.



      Author's profile photo Karthick Selvaganapathy
      Karthick Selvaganapathy

      Hi Mrinal, Could there be cases where client wants to create service order for different service providers involved in a ocean shipment, let us say Port Operator ?

      If yes, how SAP will bring service provider value in service order, could you pls put some info on this ?

      I understand that we can have additional agreement party defined in FB and follow on FSD and S PO/SES can be created but can it be somehow handled by service order creation ? What is the difference in both of these 2 options ?

      Kind Regards

      Parveen -Kumar