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SAP SD- TM integration

In recent times SAP is continuously enhancing SAP Transportation Management

As many of us know that Transportation is integral part of SAP R/3 as LE-Transportation for shipment and cost calculation. Later SAP came up with some advancement in terms of Advance planner and Optimizer. During 2009 SAP TM emerged as Stand Alone system supporting Service providers such as DHL , LINFOX . By adding shipper business process TM now supports AIR, OCEAN and Land transportation

Now as part of Knowledge sharing, i would like to share the integration between SAP R/3 SD (Sales orders , Deliveries) and SAP TM

SAP ERP integrates with SAP TM mostly in shippers business process where all the Transportation planning and execution phases is handled by SHIPPER ( manufacturer)

Business process:

Let’s assume, customer places an order with the company for a material which has to be delivered to his site. As part of Sales order process we create Sales order in R/3. Now the order has to be integrated to the SAP TM system to initiate the Transportation process for arranging transportation and execution

Now our concentration here is about how R/3 order is integrated to SAP TM and what are the prerequisites from SD stand point

Basic settings in SAP SD

we have a integration configuration inbuilt in R/3 to transfer Sales order , Deliveries and Purchase orders to support both inbound and outbound transportation process

Path:

SPRO–>INTEGRATION OF R/3 WITH OTHER COMPONENTS–>TRANSPORTATION MANAGEMENT–>ORDER INTEGRATION

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1. Control Key:

This is the activity where we define which documents are required to be integrated to SAP TM. Here we have options such as Sales orders, Deliveries, Purchase order. We can choose one among them or combination of them to transfer to SAP TM.

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2. Activate Sales documents

This is the activity where we assign required sales area, along with Sales document type and Shipping conditions. This way we are controlling the document types which are required to be transported. For example if we want only outbound Sales orders to be transported and not Return sales orders to be transported, in this activity we can control

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3. Activate Delivery documents

As we activated Sales order, similar way we can also activate transfer of Delivery documents to SAP TM. This setting has to be activated specific to SHIPPING POINT & DELIVERY TYPE along with the CONTROL KEY

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4. Activate for Purchase order

This step is required if we need to activate Purchase orders or Stock transfer order to be transferred to SAP TM

We can activate PO documents in combination with PURCHASE ORGANIZATION, PURCHASE GROUP , PO TYPE & CONTROL KEY

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Transaction flow

1. Create Sales Order

Create a sales order in VA01 as normal process

2. with all the above integration in place system will create Transportation Requirement in TM which will be used for Planning and execution of Transportation of Physical goods. As part of planning in SAP TM system will populate realistic transportation dates and resource scheduling. Upon which we can plan Delivery in SAP R/3.

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