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Author's profile photo Michael Haase

Incoterm location in freight unit stage building of SAP TM

Dear friends of SAP TM,

In this blog post,  we already talked about the assignment of incoterm locations in SD, MM and LE to ‘real’ locations in SAP TM.  In the example, we have seen that an additional stop had been created for the incoterm location:

Now, we will take a closer look at the necessary settings in customizing to enable (or disable) this adding of a stop in freight unit stage building.

The main setting influencing this behavior is the so-called Incoterm Location Stage Building Rule in the Logistics Integration Profile:

Basically, this setting decides during TM integration whether stages in freight units are built from and to the incoterm location and whether they are planning relevant or not.

In total, we have six different values for this setting. As they might be a bit hard to understand, let’s make an example. We assume, we have incoterm EXW (Ex Works) and we create a sales order to deliver some goods from a plant to a customer, whereas the goods are to be picked up at a distribution center.

Here, you can see the six different values of the Incoterm Location Stage Building Rule and how the stages are built when integrating the sales order with TM:

So you see, depending on the Incoterm Location Stage Building Rule, the stage building differs and thus does the transportation planning. In other words…you choose the Logistics Integration Profile per sales document type/distribution channel and decide thereby with the selected Incoterm Location Stage Building Rule if you want to plan the whole transport or only the part from or to the incoterm location. Similarly of course when integrating documents from MM and LE.

Means…when you miss a stage in your created freight units, first check those settings before blaming the system or some innocent ABAP developers 🙂

I hope this gives a bit insight in stage building regarding incoterm locations.

Any feedback is appreciated!

Best regards,

Michael

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      6 Comments
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      Author's profile photo Valentijn Van Driessen
      Valentijn Van Driessen

      Thanks Michael!

       

      Is there actually a difference between "Two active stages - Type 1" and "Two active stages - Type 2" ?

      Author's profile photo Michael Haase
      Michael Haase
      Blog Post Author

      Hi Valentijn,

      Thanks for your comment!

      According to my experiences and what the application help of the field tells there is no difference regarding stage building.

      Best regards,

      Michael

      Author's profile photo Abhijit Maulik
      Abhijit Maulik

      Hi Michael,

       

      Thanks for clear explanation on this? When we have more than 2 stages, is that also through incoterm?

       

      Regards,

      Abhijit

      Author's profile photo Michael Haase
      Michael Haase
      Blog Post Author

      Hi Abhijt,

      No, this can't be through an incoterm location. The usage of an incoterm location can lead only to at most one more stage.

      Best regards,

      Michael

      Author's profile photo Adi Mogilevsky
      Adi Mogilevsky

      Which configuration should I choose if in my scenario once order started the Customer A could cancel the Sales Order mid way of my Freight order execution and I would like to save time and re assign the same Freight order to another Customer B?

      my question is - should I reverse back all BIL LE SD documents or is there any other smart way to TM to complete such a switch ?

      we call it Diversion from Customer A to Customer B. More complicated scenario is that I could divert if from Customer B (external customer) to Customer C (internal Customer)

      Author's profile photo Michael Haase
      Michael Haase
      Blog Post Author

      Hi Adi,

      I guess this is independent from the topic of incoterm location and stage building which is discussed here, right?

      I can't tell you right away how to handle this as this requires some deeper analysis of the scenario, sorry.

      Best regards,

      Michael