Integration of Schedule agreement with embedded Transportation management (TM ) in S/4HANA 1909 Release
Schedule agreement (of SAP Material management) is used by several industries and very common with some industries like automobile. It is an agreement with a vendor to supply specific quantity of material/s at regular intervals (weekly or monthly). This schedule agreement helps the purchaser (manufacturer) to procure materials when needed (thereby reducing the inventory) and also eliminates the requirement to place multiple purchase orders to the vendor (thereby reducing overheads as well).
Prior to 1909 release, it was not possible to plan the transport for the delivery schedules (from MM schedule agreement) with embedded Transportation management ( TM) in S/4HANA. Possibility of transportation planning in embedded TM for MM Schedule lines was a major demand / requirement for several customers and that has now been fulfilled by SAP with its S/4HANA 1909 release.
My present blog is to describe the process for MM schedule agreement / lines with embedded TM, relevant SAP screen shots and important configurations & synchronization program.
A typical process flow for MM schedule agreement with embedded TM is depicted in below image. The demand / requirement for a material is first forecast (planned) and subsequently an agreement is created with a vendor for supply of the material at regular intervals at an agreed price. Subsequent MRP runs create / update delivery schedules of the schedule agreement (SA). Freight units (FU) are created in embedded TM. Transport of the material is then planned and a freight order (FO) is created in embedded TM. In real life many a time, the date planned in MRP may not be feasible to be met with date planned after transport planning for several business reasons. If there is a change in date in FO w.r.t the date planned in MRP, then the same gets updated in FU automatically (depending on settings) and in SA (through a synchronization program). Supplier is subsequently intimated / updated of the updated schedule.
Refer the below images encircled with (1),(2),(3),(4),(5),(6) for relevant SAP transactions / documents to correlate with the process steps as encircled (1),(2),(3),(4),(5),(6) in above image. Note that MRP planned the delivery for the month of April on 29th April which was updated in FU on its creation. Delivery date has subsequently been planned / decided as 20th April’2020 in FO after transport planning and this date 20th April’2020 subsequently got updated in FU and also in SA.
Now, like to highlight the important configuration , synchronization program and some insights for this flow in embedded TM in S/4HANA 1909 release.
- Schedule agreement type needs to be configured with purchase organization, purchase group , control key and relevant logistic integration profile in IMG path IMG->Transportation management->Integration->Logistic integration->Internal TM component integration->Define transportation-relevance of purchasing documents.
- Date from FO does not get updated to delivery schedule in SA automatically. Program /SCMTMS/TM_SAG_PLANNING_SYNC needs to be executed to update the delivery schedule dates from FO to SA as in below image.
- It may be observed that the schedule delivery date in SA is not getting updated after running the synchronization program though there is a difference between the date in delivery schedule after MRP and the date planned in FO in embedded TM. One of the reasons may be that MRP has set the dates in SA delivery schedule as ‘Fixed’ as shown in below image. And in that case, date in SA does not get updated.
Refer the SAP note 2088322 regarding the firming of schedule agreement and also the settings of MRP type (in OMDQ) to map the relevant business process.
This blog is based on my personal observation and insights. Will appreciate your feedback / comments.
A few days back I had a discussion with a well known automotive company about MM and eWM. They were not aware of it and tood me that I had no clue...
Thx you made my day.
Thank you for the insightful blog post. According to SAP Note 2813859 - SAP S/4HANA 1909 Supply Chain for Transportation Management - Release information:
Creation of Freight Units out of Scheduling Agreements (outbound) is only supported for side-by-side scenarios, but not yet for system internal processing
Is this information incorrect? S/4HANA 1909 Embedded TM does support this now?
My present blog talks about MM Schedule agreement i.e not outbound (SD) agreements (which are still not integrated to embedded TM ) . Hense, the note 2813859 is very right.
Hope , I am able to clarify.
Pretty cool feature, thanks for explaining it so well!
Nice Blog and Insightful. Thanks