Shipment Costing Tracks Freight Expenses with Improved Accuracy

  • by Hasan Yakisan, Senior LES Consultant, Enowa Consulting
  • September 14, 2011
SAP shipment costing functionality available within standard SAP Transportation Management can help you track, manage, and reduce transportation costs more efficiently. See how to effectively manage shipment cost estimates during order entry and shipment costing during transportation processing. This functionality enables you to get an accurate view of your company’s transportation costs and is helpful when determining how to achieve additional cost savings for your organization.
Key Concept
Using transportation planning and shipment costing, you can accurately determine the transportation and freight costs of your company. You can also allocate and settle these costs to the correct accounts. Shipment costing allows you to accurately calculate the freight expenses and can also be used during customer billing to allocate the correct amount to the customer’s invoice.

SAP ERP transportation planning and shipment costing offers extensive functionality to manage freight- and transportation-related expenses. It enables companies to control and track freight expenses within their own SAP ERP system rather than through legacy systems or third-party services that many companies have used to manage and keep track of transportation cost and expenses.

SAP ERP shipment costing functionality with the appropriate shipment costing types and procedures can calculate and capture the freight expenses of your company. These freight expenses can then be passed on to your customers or built into your base freight charge calculations. Shipment cost expenses can be settled via the materials management (MM) purchasing process. The system can automatically generate a purchase order for the service performed by your freight vendor and then post the receipt of the service against the purchase order, generating an accrual of the expenses.

I primarily focus on shipment costing during the sales and shipping process to show how you can manage and track these expenses within your own SAP ERP system. The use of this functionality not only offers more control, but also presents access to real-time data about your transportation costs. Additionally, the fact that more detailed freight expenses are available within the SAP system can provide your organization the option to analyze and evaluate these expenses as well as improve profitability analysis. 

Hasan Yakisan

Hasan Yakisan is a senior SAP LES consultant with more than 17 years of SAP implementation experience. During his career, he has focused on helping his customers optimize their logistics business processes by designing SAP solutions for highly complex logistics business requirements to maximize and enhance the functionality of the SAP R/3 product, and has been providing new solutions within the logistics area.

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