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4? SAP TM TCM is extremely flexible (however, flexibility requires also some complexity)? Example: enable to consider weather or any other customer specific attribute as an influencing factor for the

calculation

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6Transportation charge calculation (TCC) is the component within TM which is responsible for determining theexpected cost for a given transportation scenario. The cost calculation request can come from the followingbusiness objects:

?Order entry including Quotation?Transportation Planning?Shipment processing?InvoicingBased on the request the TCC determines and returns the calculated charges in the form of DOTransportationCharges. During the calculation process, as a first step the TCC determines the Freight Agreement toget information about the contract between the transport service provider (TSP) and a customer or supplier. Basedon the determined freight agreement the calculation sheets (procedure) are determined using the logistics inputparameters (like weight, distance, mode of transport etc.). The charge calculation then evaluates the calculationsheets to determine the final cost by applying agreed rules of calculation (e.g. break-weight, bulkiness. exclusionsetc.),

Profitability calculation component essentially offers services using which profit allocation between various partiescan be performed.

?The key focus of this design is the remodelling of the charge calculation component of the TM 7.0. From afunctional perspective, all the functional requirements that were supported by TM 7.0 would be supported by theTM 8.0 charge calculation component. This would comprise of:

?Charge calculation services for order, invoicing and planning including integration with ERP. This wouldcomprise of calculation of the charges based on the calculation sheets including rate tables, conditions andreturning the charge calculation results in the form of the DO TransportationCharges and services to aggregatethese charges for ERP integration purposes.

?Profitability calculation services (estimated and actual) for the Transportation Request. This would involvecomparing the revenue for the TransportationRequest against the costs incurred in the TransportationOrders,

7? As to the Transportation Charge Processing Request, there is additional information in the appendix.? The node structure of the BO Freight Invoice Request includes a lot of information of the assigned shipment

request/ order (shipment item, stages, resources, activities), according to the EDIFACT IFTFCC message.In addition to IFTCC, an invoice request can contain several freight requests/ orders.

? The message which is sent to ERP for billing and invoice verification is modeled based on the BO FreightInvoice Request, as its information could be the basis for e.g. the accounting and account assignment in ERP.

? The former terms Billing (debit) and Settlement (credit) where renamed due to the SAP wide harmonization(PIC-Process).Customer Freight Invoice Request represents Billing (debit) (Forwarding Settlement Document)Supplier Freight Invoice Request represents Settlement (credit) (Freight Settlement Document)

8? Freight Agreement determination:? Usage code (customer / service provider)? Contractor (Sales Org or Purchasing Org) ensures proper organizational unit is able to use the rate? Contracting Party defines for which business partner (customer / service provider) the agreement is

valid

? Additional preconditions may be defined

? Flexible definition of additional preconditions? Forward navigation for all objects

? OrgView for Charge calculation: this would be a new business object proposed in TM8.0 which captures theoragnizational aspects relevant for the charge calculation.

9? Examples of rates and calculation methods:?Weight / Volume rates?Break weight calculation?Volumetric rate calculation (Bulkiness factors)?Distance rates?Freight all kind / Commodity rates?Various origin / destination point classifications such as point-to-point, point-to-zip, point-to-state, zip-to-

zip and state-to-state?Rates based on Equipment (container type / size) or packaging class?Minimum, Maximum rates?Handling charges?Terminal handling, cross docking costs, loading / unloading, empty handling, document handling, AMS

filing, Canal Due, security surcharge, etc.?Surcharges?Bunker adjustment, Currency adjustment, Congestion, Demurrage, Night time deliveries, Notification

charge, Hazardous surcharge, Waiting time, Feeder Costs, low tide surcharge, port congestion, etc.?Toll calculation?Taxes?Discounts

? Rates can have up to nine scales.

? Rates can be exported to XML file and changed. They can then be uploading back into TM.Mass upload of rates should be possible in future TM releases.

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PLEASE NOTE THAT THE USE OF TEMPLATES ARE OPTIONAL AND THE MASTER DATA CREATION/ UPDATION WOULD BE POSSIBLE WITHOUT TEMPLATES AS WELL !!

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? Different options are possible. Calculate for truck transport 1 Truck Fee (FCLscenario) does not consider if truck is full or not. For this situation the besteresolution base is Root. Calculation base could be distance.

? LTL charge for each pallet on the truck. Charge the number of quare meters, numberof pallets/distance (rate)

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In the calculation engine, first the Freight Agreement (FA) is determined that is valid. Information can be added,like Notes, Attachments and Services. Also several details are available, but per FA a validity period is mandatory!In a FA a Calculation Sheet (TCCS) is assigned, the content of the TCCS is visible in the lower part of the screen.Note: not visible in this screenshot.

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? The Transportation Charge Calculation Sheet can consist of more than one line. It can be either a ChargeElement and or another TCCS. In this example there are two Charge Elements.

? The Calculation Resolution Base, calculation base code are shown.

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? You can define that the rate will not be calculated automatically. It will be available for manual input.? You even can created your own rate determination rule.? Instead of referencering a rate table, you can also just set a fixed amount for the rate, e.g. 100 EUR

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? This Rate consists of 2 scales.? In the rate table the following parameters are available:

? Validity period (you can add a validity line and maintain the rates without release it)? Life Cycle Status? Currency? Rounding Profile

? t is also possible to upload your rates via an excel file.

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? Several parameters defines the behavior a scale:?Scale Base?Scale Type?UoM?Scale Values

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? The process example is regarding a standard German tarif used in transportation. From location to locationcosts (haus-haus-entgelte). Dimensions are distance and weight in the example.

? Spediteur Sammelgut Verkehr means Carrier Load Traffic

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? In TCM it is also possible to add additional costs. In the example Sammelgut there are costs described foradditional work (Nebengebuhren) like , we gonna show this as well.

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? The first step is to define the scales. In this slide the scale for distance is shown, the scale base, type and UoMare mandatory fields. In the calculation type you can choose between Absolute and Relative. You also create ascale for Weight.

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? In the Rate table the scales Weight and Distance are combined. The result is the costs in the table in the samestructure as in the Sammelgut table.

? You can download and upload the rates via the excel integration, but of course you are free to add it manuallyyourself ?

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? The first step is to define the scales.

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? Additional costs can be added to a TCCS. In this case the Advice Fee is an additional cost that doesnt have ascale and rate table, nevertheless this is now always charged in via a TCCS.

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? The Freight Agreement is connected to a TCCS and as you can see the costs (Freight charge and the AdviceFee) used in the TCCS assigned are visible in the FA.

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