ShipERP

General overview

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General Overview........................................................................................................................................3
Navigation...............................................................................................................................................3
Shipment Types.......................................................................................................................................4
Small Parcel.........................................................................................................................................4
Expedited Air Freight...........................................................................................................................4
LTL.......................................................................................................................................................4
International shipment and documentation required.............................................................................5
Sap incoterm and ShipERP billing options...............................................................................................6
Partner type and definition.....................................................................................................................7
Prerequisites................................................................................................................................................8
Setup User Parameters (SU3)..................................................................................................................8
Setup Favorites........................................................................................................................................8
DeliveryProcessing......................................................................................................................................9
ShipERP screen on ShipERP additional Data tab......................................................................................9
Carrier determination............................................................................................................................10
Billing Type............................................................................................................................................11
Rate quote.............................................................................................................................................14
More Options........................................................................................................................................16
Freight Condition...................................................................................................................................17
Analysis..............................................................................................................................................18

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General Overview
ShipERP is a fully integrated shipping solution designed within the SAP ERP system which
performs real-time carrier determination, rate quoting, issuance of tracking numbers and label
printing while adhering to the SAP Best Practices of Sales and Distribution. This completely
configurable solution provides the shipping company the ability to rapidly ship products during
the pick/pack/ship process as well as electively adjusting shipping services on the fly.

Navigation

Back you to the previous Screen

Exits you out of the current transaction

Cancels the current transaction

Save Document

Creates new Session

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Shipment Types

Small Parcel
A parcel is a package bearing barcoded label with name and address of the recipient in order to be
routed through the services of the postal service or by express package delivery service to the recipient
and could be tracked all the stages until the reception by the final recipient

The size can range from a standard mail package to a box large enough to protect what you send, up to
a size that can be transported in a wheelbarrow. Parcel carriers usually handle small packages and
freight that can be broken down into units less than 150 pounds (68 kg).

These types of shipments will be processed in ShipERP Small Parcel shipment screen. A 4 x 6
shipping label from the carrier (e.g. UPS) will be printed.

Below are some examples of the carrier / services for these types of shipments

Carrier Code Services

FDXG Ground
FDXE Express (Air)
UPS Ground & Express (Air)
DHL Express (Air)

Expedited Air Freight

Expedited Air freight shipments are heavy shipments that are usually over a 150 LB. These types
of shipments should be processed in the small parcel shipment screen. A 4 x 6 shipping label
should be printed.

Below are some examples of the carrier / services for these types of shipments

Carrier Code Services

FDXE HW Air Freight
UPGA Supply Chain

LTL
Less than truckload shipping (LTL) is the transportation of relatively small freight. LTL
shipments typically weigh between 151 and 20,000 lb while TL are typically between 26 and 53
feet and require a substantial amount of freight to make such transportation economical. The
main advantage to using an LTL carrier is that a shipment may be transported for a fraction of
the cost of hiring an entire truck and trailer for an exclusive shipment. A number of accessory
services are available from LTL carriers. These optional services include liftgate service at pickup
or delivery, residential (also known as "non-commercial") service at pickup or delivery, inside

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delivery, notification prior to delivery, freeze protection, and others. These services are usually
billed at a predetermined flat fee or for a weight based surcharge calculated as a rate per
pound or per hundredweight.

These types of shipments will be processed via the ShipERP Planning screen. A pallet label and
BOL will be printed.

Below are some examples of the carrier

Carrier Code Services

SAIA LTL
R&L LTL
FXFE FedEx LTL
UPGF UPS LTL

ShipERP station small parcel vs LTL

/erpis/shiperpn is the transaction that will be used to process both small parcel and LTL shipment once
the same have been fully picked and moved to the shipping area, from now on we will call it as a
Shipping station.

The station shall physically identify a specific location inside the warehouse/shipping area where the
deliveries are located and are ready to be picked up by the carrier.

Each shipping point/plant will have at least two different station set up in ShipERP, one for small parcel
and one for LTL. Each station will have in turn a profile assigned. The profile contain in ShipErp specific
rules, for example:

1. For the LTL shipment it specifies what shipment document type within SAP needs to be used in
background mode when the delivery are going to be planned.
2. For the small parcel it specified that the post good issue (decreasing of the stock from the
warehouse and close the delivery/posting account document) should be automatically posted
for the delivery.

If a user is dedicated to process always and only small parcel shipment, it can possible to default both
the station and profile so that it will not be required to select each time what to use from the drop down
list.

International shipment and documentation required

Documents required for International shipments

Commercial Invoice

The Commercial Invoice is the foundation of all other documents required for international shipping.
Information provided on other international shipping documents, including the air waybill or shipping

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label, must correspond with the Commercial Invoice. The Commercial Invoice is a document between a
seller (exporter) and a buyer (importer) with complete listing and description of goods. It’s prepared by
the exporter and is required by the foreign buyer to prove ownership and arrange for payment.

Certificate of Origin

The Certificate of Origin is a signed declaration from the manufacturer of the goods indicating that the
goods are of Canadian origin and meets the requirements of a free trade agreement.

NAFTA Certificate of Origin

A NAFTA Certificate of Origin is a trilaterally agreed upon form used by Canada, Mexico, and the United
States to certify that goods qualify for the preferential tariff treatment accorded by NAFTA.

Sap incoterm and ShipERP billing options

Billing option scenarios

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Most of the carriers offer several billing options so customers have the flexibility to choose the payment
method.

Bill Shipper (Prepaid) - carrier bills shipping charges to the shipper's account number.
Bill Receiver (Collect) - carrier bills shipping charges to the receiver of goods (I,e consignee).
Bill Third Party (3rd Party) - carrier bills shipping charges to a party other than the shipper or receiver.
The third party must have a valid carrier account number and must have agreed to accept the charges.

Shipper of the goods can also use Prepaid and add billing option (PPAID&ADD) – ships on behalf of its
own account because he has better rates with the carrier and will add the freight charges to the
customer invoice.

Duty and taxed for international shipment

Customs Duty is a tariff or tax imposed on goods when transported across international borders. The
purpose of Customs Duty is to protect each country's economy, residents, jobs, environment, etc., by
controlling the flow of goods, especially restrictive and prohibited goods, into and out of the country.

ShipERP will only specify if duty and taxes will be ppaid, collect or third party based on the incoterm that
Coesia will provide. Any condition will be updated.

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Partner type and definition

Forwarding agent: a person, agency, or enterprise engaged in the collection, shipment, and delivery of
goods.

Freight forwarder: a person whose business is to act as an agent on behalf of the shipper to arrange
transportation services. A freight forwarder frequently makes the booking reservation. In the United
States freight forwarders are licensed by the FMC as Ocean Transportation Intermediaries and are only
designated freight forwarders for export shipments. Non-Vessel-Operating Common Carrier (NVOCC).

It could be possible to have the scenario where both the forwarding agent and freight forwarder will be
used.

Forwarding agent will pick the material and ship through the border, the freight forwarder will pick up
the materials from the border and ship to final destination.

Customs Broker: person or firm, licensed by the treasury department of their country when required,
engaged in entering and clearing goods through Customs for a client (importer).

Prerequisites

Setup User Parameters (SU3)

Setting user parameters sets user defaults on specific fields and screens. Below are the
parameters used by ShipERP

 /ERPIS/PROFILE – Sets default profile

 /ERPIS/SHIPSTATION –Sets default station
 /ERPIS/SKIPLOGIN – Skips login screen and goes directly to small parcel screen or default
screen (optional)

Go to t-code SU3, parameters tab. Enter parameters as required.

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Setup Favorites
Setting favorites helps manage often used transactions

 /ERPIS/SHIPERPN – ShipERP
 /ERPIS/EEI – AES Direct Filing
 /ERPIS/AESRPT – AES Direct status Report

DeliveryProcessing

ShipERP screen on ShipERP additional Data tab

Go to Delivery -> Header -> ShipERP additional data

Carrier and service selection will be determined based on the forwarding agent
maintained in the customer master and copy over
into the sales order and delivery.

If not forwarding agent is found, the following

generic rule will apply: UPS ground for small parcel
and YRC for LTL shipment.

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 Billing option ID will be determent based on the incoterm from the
customer master and copy over in the sales order
and delivery.

3RD/COLL account if billing option is determined as collect a new

screen will appear below the billing option ID. The
3rd party or collect account needs to be entered for
collect shipment with FedEx and UPS. For UPS Zip
code and country is required and can be
maintained in ShipERP table to have the automatic
determination during delivery creation.

Freight Forwarder When the check box is checked and the freight forwarder
partner is maintained in the customer master and copied
into the sales order and delivery, it will be used for the
shipment and will be displayed in ShipErp station as th ship
to destination. The check box can be manually set in the
delivery or will be copied over from the sales order if the
flag for the freight forwarder is checked in customer
master.

Single rate quote will perform rate quote call based on the selected carrier.

Will perform Rate quote call to all available carriers set up

in the system and only the services that can be delivered
by this date and destination will show up.

Manual selection flags if this flag is selected means that the automatic ShipERP
determination for carrier/service and/or billing option was
manually selected by the user in the delivery.

Carrier determination
Carrier will be determent based on the forwarding agent maintained in the customer master if
available, otherwise UPS ground will be defaulted for small parcel shipment and YRC for LTL. In
order to check what carrier is selected go to ShipERP additional data tab on header level, carrier
and service will be in designated fields.

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In order to manually override the carrier in the delivery, simply select the carrier to be used and
available in the drop down list (black arrow pointing down available for both carrier code and
carrier service fields. If carrier was manually selected, manual selected, manual selection flag
will be set.

Billing Type

Billing type will be defined based on the incoterm available in the sales order (copied over from
the customer master). If the flag for PPAID&Add is selected means that the customer is going to
be charged for the freight cost.

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If Add flag was manually changed – warning flag will appear

When shipping collect or 3rd party with UPS or FedEx, collect will be populated based on the
customer. If there is no account available for customer account needs to be entered in the
delivery or at a time of shipment in ShipERP station. ShipERP will validate the account against
the carrier at a time of processing of the shipment.

 Maintain 3rd party/COLL accounts on Sold To/Ship To customer master on ShipERP

Additional Data
Go to Change Customer (transaction VD02) – ShipERP Additional Data

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Choose option to maintain account by Sold To or Ship To partner.

Click on the selected table and following screen will appear.

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Click “New Entries” and add appropriate information by Reference Shipping Points (Please see
App A for list of reference shipping points).

For UPS account #, zip code and county associated with this account needs to be maintained.

If account was entered by sales rep at a time of order creation, manual selection (3 rd/COL Acct)
flag will be set.

Rate quote

First icon for shop estimated rate will show the rate quote for the selected carrier

The second icon will show the rate of all the carriers

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Hit “Shop Estimate Rates”

All available services of the entire carrier available to the destination address will show up on
the popup.

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To choose the desired carrier double clicks on the carrier line or simply click on cancel.

If another carrier is selected in the rate quote both rate quote selection and manual selection
for the carrier will be flagged.

Carrier and service on ShipERP tab will change accordingly.

More Options
Carrier Options (i.e. Saturday Delivery, Return Service, Flat Bed) can be maintained in the
delivery.

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Click the "More Options" button

All the carrier options are displayed

Note: Different carriers will have different options

Freight Condition
New Freight conditions ZFRT and ZFRS (for statistical purpose) will appear in the condition tab
of the delivery after the delivery has been fully processed in ShipERP station.

ZFRT will be populated only if the billing option is PPAID AND ADD and the customer will be
charged. The amount retrieved back from the carrier will be the listed rate.

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ZFRS will be populated for statistical purpose - for both PPAID AND PPAID AND ADD billing
option - and the amount displayed and retrieved back from the carrier will be the discounted
rate.

Analysis
The Analysis button gives visibility into the determination rules of ShipERP. Basically, it tells why
ShipERP chose a carrier and it points you to the exact condition table that was used to
determine the carrier. The analysis button is available in the Delivery and ShipERP transactions.

Click the analysis button

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In this example, Carrier Determination started at condition table /ERPIS/H014 and eventually
found a match in table /ERPIS/H013. Table /ERPIS/H013 tells ShipERP to use EXLA (LTL).

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