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S4611
Basic Transportation Management
in SAP S/4HANA

.
.
PARTICIPANT HANDBOOK
INSTRUCTOR-LED TRAINING
.
Course Version: 26
Course Duration: 2 Day(s)
Material Number: 50165406

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Contents

vii Course Overview

1 Unit 1: Transportation Management as Part of SAP S/4HANA Enterprise

Management

3 Lesson: Describing SAP S/4HANA Enterprise Management:

Motivation and Overview
7 Lesson: Explaining Basic and Advanced Transportation
Management (TM)
13 Lesson: Using Worklists in TM

19 Unit 2: Master Data for Logistical Processes

21 Lesson: Explaining Organizational Units

25 Lesson: Creating Business Partners
27 Lesson: Creating the Transportation Network

39 Unit 3: Creation of Transportation Requirements

41 Lesson: Defining Transportation Relevance

53 Lesson: Creating Freight Units
59 Lesson: Defining Conditions

67 Unit 4: Transportation Planning

69 Lesson: Creating Freight Orders and Freight Bookings

81 Lesson: Subcontracting to Carriers

89 Unit 5: Transportation Execution

91 Lesson: Describing Freight and Transport Execution

95 Lesson: Creating (Print) Freight Documents
101 Lesson: Exploring Warehouse Integrations

113 Unit 6: Settle Transportation Charges and Distribute Costs

115 Lesson: Describing Charge Calculation Master Data

127 Lesson: Calculating Transportation Charges
131 Lesson: Settling Transportation Charges with Carriers
139 Lesson: Distributing Transportation Costs

149 Unit 7: Outlook – Advanced Transportation

151 Lesson: Describing Advanced Transportation Management

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Course Overview

TARGET AUDIENCE
This course is intended for the following audiences:
● Project Manager
● Project Stakeholder
● Application Consultant
● Industry / Business Analyst Consultant
● Business User
● Business Analyst

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UNIT 1 Transportation Management as

Part of SAP S/4HANA
Enterprise Management

Lesson 1
Describing SAP S/4HANA Enterprise Management: Motivation and Overview 3

Lesson 2
Explaining Basic and Advanced Transportation Management (TM) 7

Lesson 3
Using Worklists in TM 13

UNIT OBJECTIVES

● Explain the motivation behind SAP S/4HANA Enterprise Management

● Describe the main components of SAP S/4HANA Enterprise Management
● Explain how LE-TRA relates to basic shipping
● Describe the differences between basic shipping and advanced transportation
management
● Describe the screen layout of worklists
● Create a query to filter transportation requirements

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Unit 1: Transportation Management as Part of SAP S/4HANA Enterprise Management

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Unit 1
Lesson 1
Describing SAP S/4HANA Enterprise
Management: Motivation and Overview

LESSON OBJECTIVES
After completing this lesson, you will be able to:
● Explain the motivation behind SAP S/4HANA Enterprise Management
● Describe the main components of SAP S/4HANA Enterprise Management

Motivation Behind SAP S/4HANA

As your enterprise plans to implement SAP S/4HANA, you want to get some insights into the
new SAP S/4HANA Enterprise Management logistic solution.
There has been an exponential growth of digital information (social, mobile, and big data), an
increase of globalization and the spread of business networks, and the Internet of Things.
These changes have resulted in more complex business processes, more complex
organizations, and more complex software solutions. The exponential proliferation of mobile
devices, social media, cloud technologies, and the staggering amounts of data they generate,
have transformed the way we live and work.
Machine learning (ML) is the study of algorithms and statistical models that computer
systems use to progressively improve their performance on a specific task. Machine learning
algorithms build a mathematical model of sample data, known as "training data", in order to
make predictions or decisions without being explicitly programmed to perform the task.
Artificial intelligence (AI) is an area of computer science that emphasizes the creation of
intelligent machines that work and react like humans. Some of the activities that computers
with artificial intelligence are designed for include:
● Speech recognition
● Learning
● Planning
● Problem solving

These advancements have improved our lives and provided us with greater opportunities for
innovation than ever before. The world may be getting smarter, but it is not getting any easier.

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Unit 1: Transportation Management as Part of SAP S/4HANA Enterprise Management

SAP Strategy - Deliver the Intelligent Enterprise

Figure 1: SAP Strategy - Deliver the Intelligent Enterprise

As the figure, SAP Strategy – Deliver the Intelligent Enterprise, shows, the digital value
network starts with a digital core, which interconnects all aspects of the value network in real
time to drive business outcomes. The digital core gives companies a new platform for core
business processes and bring together business processes with analytics in real time. This
enables a smarter, faster, and simpler enterprise, which includes connecting every aspect of
internal operations. It also enables real-time processes.
SAP is heading in the direction of Machine Learning and the Intelligent Enterprise. Machine
learning technologies are critical to empowering this vision of the Intelligent Enterprise. By
embedding algorithms directly into multiple SAP systems, we can continuously learn and
adapt to new data as it comes in, without a user having to be involved.
The information is presented to knowledge workers in the transaction screens they are
familiar with, but are enhanced with new information to make them more effective at their job.
Not only is SAP delivering these types of embedded self-adapting algorithms into all our core
applications, we are making it possible for our customers to customize these models or
deliver entirely new models of their own with SAP Predictive Analytics, application edition.
This entire value chain, including the core, is digitized, and serves as the platform for
innovation and business process automation.

The Next Generation Business Suite

SAP S/4HANA is a new product. With SAP S/4HANA, we are building on the success of the
SAP Business Suite, powered by SAP HANA, with a completely new and reimagined suite.
SAP S/4HANA runs on SAP HANA and provides simplicity. For example, a simplified data
model with no indexes, no aggregates, no redundancies. It also promotes innovations. For
example, open in-memory platform for advanced applications predicting, recommending, and
simulating.
SAP S/4HANA is natively designed with SAP Fiori UX, and offers an integrated user
experience with modern usability and instant insight on any device (role-based), a maximum
of three steps to complete a job, mobile-first, consistent experience across lines of business
(LoB).

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Lesson: Describing SAP S/4HANA Enterprise Management: Motivation and Overview

SAP S/4HANA is natively connected to the Internet of Things and business networks for real-
time collaboration in the networked economy. It is natively engineered, providing a choice of
deployment options (on-premise, cloud, and hybrid). It is also natively born for easy adoption.
For example, guided configuration and easy on-boarding, from the discovery of the solution
through cloud trials to deployment with preconfigured best practices.

The Evolution of the SAP S/4HANA Architecture

Figure 2: The Evolution of the SAP S/4HANA Architecture

In SAP S/4HANA Finance 1503, the Unified General Ledger (U-GL) was introduced. It brings
together the once-separate components - Financial Accounting (FI) and Controlling (CO) -
into one pool of relevant business data. This single source of truth collects all accounting-
relevant transactions and makes them available to all relevant application components:
Financial Accounting (General Ledger), Controlling, Asset Accounting, and Material Ledger.
With SAP S/4HANA 1511, the optimized data model for logistics with Business Partners (BP)
and Material Ledger (ML) was introduced.
With SAP S/4HANA 1610, Extended Warehouse Management (EWM), Production Planning
and Detailed Scheduling (PP/DS) where embedded and advanced ATP (aATP) was
developed.
With SAP S/4HANA 1709, Transportation Management (TM) was embedded and Commercial
Project Management (CPM), Portfolio & Project Management (PPM) and Financial Closing
Cockpit (FCC) were added.
With SAP S/4HANA 1809, Group Reporting (GRep), Sales Force Automation, Central
Procurement (CPro) (central requisitioning was available as of 1709; 1809 adds central
contract and central purchasing) were added.

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Unit 1: Transportation Management as Part of SAP S/4HANA Enterprise Management

Main Components of SAP S/4HANA

SAP S/4HANA Enterprise Management Lines of Business

Figure 3: SAPS/4HANA Enterprise Management Lines of Business

At the center of SAP S/4HANA Suite is SAP S/4HANA Enterprise Management, which has
been built by simplifying the SAP ERP solution and reintegrating and simplifying portions of
the SAP Business Suite products, such as SAP SRM, CRM, and SCM into this core. SAP
S/4HANA Enterprise Management is available on premise and in the cloud, with different
licensing and subscription models.
The SAP S/4HANA Suite is completed by the integration of dedicated Lines of Business (LoB)
and industry solutions natively into SAP S/4HANA Enterprise Management. These solutions
can be cloud-based, like SAP SuccessFactors, or delivered on-premise as well (for example,
SAP Transportation Management), depending on the market need.

LESSON SUMMARY
You should now be able to:
● Explain the motivation behind SAP S/4HANA Enterprise Management
● Describe the main components of SAP S/4HANA Enterprise Management

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Unit 1
Lesson 2
Explaining Basic and Advanced Transportation
Management (TM)

LESSON OBJECTIVES
After completing this lesson, you will be able to:
● Explain how LE-TRA relates to basic shipping
● Describe the differences between basic shipping and advanced transportation
management

Transportation Management
Logistics Execution provided you with functions for the entire logistic processing (warehouse
management, shipping processes, and transportation processes) available to you as part of
SAP Enterprise Resource Planning (SAP ERP).

Figure 4: Shipments in Logistics Execution

Transportation (or shipment) is an essential element in the logistics chain. It affects both
incoming and outgoing goods. Effective transportation planning and processing ensure that
shipments are dispatched without delay and arrive on schedule. Transportation costs play an

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Unit 1: Transportation Management as Part of SAP S/4HANA Enterprise Management

essential role in the calculation of the price of a product. It is important to keep these
transportation costs to a minimum so that the price of a product remains competitive.
Efficient transportation planning and processing helps to keep these costs down.
Effective transportation processing is required so that deliveries are shipped on time and are
received on schedule at the customer's site. SAP ECC provides essential functions for
transportation and shipment cost processing for goods issues and goods receipts.
Inbound shipments are an integral part of the process chain in Procurement and are
processed based on inbound deliveries.
The basis of the procurement process is the purchase order. This is followed by confirmation
of the delivery by the vendor. The inbound delivery is created with reference to the purchase
order. The inbound delivery is the basis for creating the inbound shipment, that is, the
shipment of the ordered goods from the vendor to the company's plant. Goods receipt is then
posted. Invoice verification completes the purchasing process.
Outbound shipments are part of the Sales and Distribution (SD) process and are processed
based on outbound deliveries. The basis of the Sales and Distribution process is the sales
order. The subsequent document is the outbound delivery, which documents the shipping of
the goods. The outbound delivery is the basis for creating the outbound shipment, that is, the
shipment of the goods from the company's plant to the customer. Goods issue is then posted
and the invoice is created.

Figure 5: Comparison of Document Flow: LE-TRA vs. TM

Differences between LE-TRA compared to basic TM become obvious by looking at the

simplified document flow. In the SAP ERP system the process starts with the purchase order,
sales order, or a stock transfer order, and creating out of this an inbound delivery or an
outbound delivery. These deliveries are grouped together on a shipment. The shipment is the
execution document. In the LE-TRA world, it's used for communicating with carriers or for
customs. Afterwards, you do the carrier invoice verification based on the shipment cost
document, based on information from the shipment. In TM, there are many more documents,
but there are reasons why we have these documents. At the beginning, there are purchase
order, sales order, stock transfer order, or even a scheduling agreement. These document
can also be integrated to TM. This is the order-based integration. This is only part of the
advanced license. Then there is the delivery, which is integrated to TM, similar to the LE-TRA
process. Deliveries create freight units in TM, and then this freight unit is planned. The freight

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Lesson: Explaining Basic and Advanced Transportation Management (TM)

units then are consolidated together on a freight order and also onconsignments
(consignment order are only available with the advanced license). The freight order is used for
the execution. Later on, you have the freight settlement document, which is used for the
carrier invoice and the invoice verification. The EWM integration is based on the delivery and
also the freight unit and the freight order.

Basic Shipping - LE-TRA and TM

Figure 6: Basic Shipping - LE-TRA and TM

Software component LE-TRA that provided transportation-related content in SAP ECC is part
of the compatibility scope (SAP Note 2269324 – Compatibility Scope Matrix for SAP
S/4HANA on-premise). That means, its code line is kept within SAP S/4HANA Enterprise
Management until end of 2030. The functionality offered from this component is called basic
shipping.
From SAP S/4HANA 1709, Transportation Management becomes part of S/4HANA
Enterprise Management. It offers much more comprehensive and sophisticated functionality
in the domain of transportation. Use of its advanced functions require an additional license.
However, it can also be used with limited scope, that is, offering the same capabilities that
have been offered by LE-TRA. Use within this limited scope does not require a specific license.

Note:
Before release 2020, the solution capability name Basic Shipping has been used
not only for the LE-TRA functionality but as well for the base variant of SAP
S/4HANA TM. With the release 2020 the solution capability has been renamed to
Transportation Management.

Both technical solution capabilities – Basic Shipping and Transportation Management - are
independent from each other and can be used in parallel on the same SAP S/4HANA
database instance. They have no data exchange and no integration within the shipping
process.
This course will explain the (new) Transportation Management.

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Unit 1: Transportation Management as Part of SAP S/4HANA Enterprise Management

Basic Shipping is a defined collection of business processes relevant for shipping within SAP
S/4HANA Enterprise Management. The processes can be implemented with SAP S/4HANA
Release 1511 with LE-TRA and used until end of life of the compatibility scope. The main
functions of LE-TRA will be eventually replaced with the Transportation Management
functions within SAP S/4HANA Enterprise Management. Due to the development of the
freight processes in Transportation Management, the functions might have been realized
differently than they did in LE-TRA. It is planned that the processes can be implemented with
selected functions of SAP S/4HANA TM.
Both technical applications are independent of each other and can then be used next to each
other on the same SAP S/4HANA database instance. They have no data exchange /
integration within the shipping process. Long term the collection of transportation
management processes will only be realized by using selected functions of SAP S/4HANA
TM. The shipment from LE-TRA will be replaced by the freight order from TM.

Comparison of Basic Shipping and Advanced Transportation

Figure 7: Comparison of Basic Shipping and Advanced Transportation

Advanced TM addresses not only the shipping industries, but also freight forwarders. It allows
early planning based on orders (sales orders, purchase orders, MM scheduling agreements)
in addition to planning based on deliveries (outbound and inbound), which is the only option in
basic shipping / transportation management. Combined planning of inbound and outbound
deliveries within one freight order is allowed in the advanced transportation management
option. Sophisticated planning and optimization options in the domain of vehicle scheduling
and routing, carrier selection, load consolidation and load planning are key differentiators
between advanced transportation management and basic shipping / transportation
management.
SAP note 3065464 provides a comprehensive overview on which objects and functions are
part of the (basic) Transportation Management scope and which require an additional licence
(Advanced Transportation Management).
When you are implementing SAP S/4HANA TM, you want to understand whether you are
using functionality which needs the additional Advanced TM license. In order to support this
request, a report has been created. The report, which can be called via transaction /SCMTMS/
AUDIT, will deliver a good indication of your current implementation concerning the usage of

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Lesson: Explaining Basic and Advanced Transportation Management (TM)

main features in Transportation Management - for basic or advanced Transportation

Management. SAP note 3289248 provides the latest version of this report.
There is also a tool available helping to analyze the usage of an LE-TRA installation and how to
migrate it to S/4HANA TM. This tool is available via SAP note 3097186.

Transportation Management - Overview

Figure 8: Transportation Management - Overview

Transportation Management offers functionalities in the following domains:

● Order Management
● Transportation Planning
● Transportation Execution
● Freight Costing and Settlement
● Analytics and Reporting

Best Practice Scenarios

Best Practices have been defined for the implementation of transportation management
scenarios. The following notes describe the details:
● 2535942 - SAP Best Practices for S/4HANA Supply Chain for Transportation Management
1709 on premise
● 2849554 - SAP Best Practices for S/4HANA Supply Chain for Transportation
Management 1809
● 2970208 - SAP Best Practices for S/4HANA Supply Chain for Transportation
Management 1909

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Unit 1: Transportation Management as Part of SAP S/4HANA Enterprise Management

End-2-End Process Demonstration

End-to-End Demonstration

Figure 9: Transportation Management - Process Flow

A typical transportation process starts with “Order Management”. Order management is the
process of creating a transportation requirement. Transportation requirements can be
outbound or inbound deliveries. In a second step, these transportation requirements are
planned. Transportation management offers manual planning functions. Different aspects of
planning supported by SAP TM are means-of-transport selection (for example, rail vs. road)
and carrier selection. Once the planning process is finished, SAP TM supports also the
execution of transports. Execution includes document creation (print or electronic, like
waybills), track and trace integration as well as warehouse integration (SAP EWM integration
via advanced shipping and receiving). If you do not operate an own fleet, you need to make
sure, that the external carrier is paid for his services. SAP TM allows you to maintain freight
agreements, calculation sheets, and rate tables to accurately define real carrier costs, which
can be used for charge calculation, but also for settlement processes after the transport has
been executed. Analytics and reporting functionalities complete the available functional
scope of SAP TM.

LESSON SUMMARY
You should now be able to:
● Explain how LE-TRA relates to basic shipping
● Describe the differences between basic shipping and advanced transportation
management

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