Freight Settlement Document Reversal

Freight Settlement Document A document that is sent to SAP ERP requesting the verification of an invoice received from a supplier or carrier. When the invoice is received, SAP ERP checks it against the data from the freight settlement document. If you perform evaluated receipt settlement, the automatically generated invoice is based on the data from the freight settlement document. You can use the freight settlement document (FSD) to enter the data for transportation invoicing and forward it to SAP ERP for invoice verification. The transportation charges are calculated in SAP Transportation Management (SAP TM) on the basis of a freight order, service order, or freight booking. After an SAP NetWeaver® Exchange Infrastructure (XI) message is sent to SAP ERP, the actual invoice verification takes place in SAP ERP. You can create an individual FSD for one freight order, service order, or freight booking. You can create a collective FSD for multiple freight orders or freight bookings. You can also create multiple FSDs at the same time.

Structure The FSD data is taken from the business documents (for example, freight orders). However, y ou can still change some of the data. The FSD contains the following tab pages: General Data The system displays general data, such as the following: o Settlement document type o Invoice date o Purchasing organization o Payment terms o Net amount o Document currency o The invoice amount verified by SAP ERP You can change some of the data, such as the invoice date and payment terms. Business Partner  The system displays the invoicing party and payee by default. You can use business partner determination to specify how the system assigns business par tners to freight settlement documents. Charges The system displays the transportation char ges determined by the transportation charge for each FSD item. The FSD item could be either a business document (that is, freight order, service order, or freight booking) or individual i tems of the business document, depending on the calculation level settings in the calculation profile. For more information about the calculation profile, see Customizing for Transportation Management  under  under Basic Functions Charge Calculation Basic Settings Define Calculation Profile . In the case of collective FSDs, FSDs, the system shows the total amount for all the freight orders and freight bookings assigned to the FSD. You can change this data. Orders The system displays the list of b usiness documents or business document items that are being settled with this FSD, depending on the calculation level settings in the calculation profile. Document Flow  The system displays the predecessor and successor business documents as a document flow, including the corresponding SAP ERP documents, such as the purchase order (PO), service entry sheet (SES), or invoice. You can a ccess both the SAP TM and SAP ERP business documents if there is a trusted relationship between the SAP TM and SAP ERP systems and your user exists in both systems. For information about accessing a remote SAP ERP system from SAP TM, see 5.11 Remote Systems. The life cycle status indicates the current stage of the FSD i n the business process. Important life cycle stat uses are listed in the following table: 

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Life Cycle Status

Description

Ready for Accruals

The FSD is ready for you to transfer to accruals in SAP ERP.

Transferred for Accruals

You transferred transferred the FSD FSD to SAP ERP and the status in SAP ERP is not yet known.

 Accruals Posted  Posted 

The SAP ERP system successfully created the PO and SES.

Life Cycle Status

Description

Invoice Verified in SAP ERP

At least one invoice has been posted against the FSD in SAP ERP.

Cancellation Requested in SAP ERP

You requested the cancellation of the FSD and SAP TM is waiting fo r the corresponding PO and SES to be canceled in SAP ERP.

Canceled 

You canceled the FSD and SAP ERP automatically canceled the PO and SES.

Reversal Requested in SAP ERP

You requested the reversal of the FSD in SAP ERP and the status in SAP ERP is not yet known.

Reversed in SAP ERP

The SAP ERP system successfully reversed the FSD in SAP ERP. SAP ERP successfully created an SES in the PO. It automatically enabled the returns indicator in the SES.

Credit Memo Created in SAP ERP

The SAP ERP system posted a c redit memo against the reversed FSD to reverse the accruals posting.

The confirmation status is used primarily to track the integration of SAP TM with SAP ERP, and indicates the result of the last integration interaction between SAP TM and SAP ERP. Important confirmation statuses are listed in the following table: Confirmation Status

Description

Not Transferred to SAP ERP

The FSD is not yet transferred to SAP ERP for accruals posting.

Confirmation from SAP ERP

SAP ERP successfully created the PO.

 Accruals Failed 

SAP ERP failed to create the PO or SES.

Cancellation Failed 

SAP ERP failed to cancel the PO or SES.

No Confirmation from SAP ERP

You transferred the FSD to SAP ERP and the status in SAP ERP is not yet known.

Reversal Failed

SAP ERP failed to reverse the accrual posting. You should try to reverse the FSD again later.

Integration The FSD is integrated with a number of other components in SAP TM, for example: Freight Order Management You can start the generation of an FSD from a freight order, service order, or freight booking. Charge Management and Service Product Catalogs The system calculates the transportation charges based on the setup of master data objects in the Charge Management and Service Product Catalogs component, for example calculation sheets. Agreement Management The system can use the freight agreement to in clude master data objects for tr ansportation charges in the order process, such as calculation sheets or rate tables. 

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More Information Freight Settlement Charge Calculation Business Partner Determination

Freight Settlement In SAP Transportation Management (SAP TM), you ca n perform freight settlement with your suppliers or carriers by creating a freight settlement document and sending it to SAP ERP. SAP ERP uses the settlement document to create a purchase order and a service entry sheet (SES). The SES is the basis for invoice verification in SAP ERP.

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Types of settlement document and number range intervals In Customizing, you have defined freight settlement document ty pes as well as default types and number range intervals. For more information, see Customizing for Transportation Management  under Settlement  Freight Settlement  . SAP ERP settings If you use SAP ERP, you have created a service master record to assign to transportation charge types. For more information, see SAP Library for SAP ERP on SAP Help Portal at http://help.sap.com/erp under SAP Central Component . Select an SAP enhancement package for SAP ERP 6.0. In SAP Library, choose SAP ERP Central Component  Logistics Materials Management (MM) External Services Management (MM-SRV) Master Records from the ESM View  Service Master Record  . In Customizing, you have also made the following settings: o Defined category and subcategory codes o Defined and assigned transportation charge types o Mapped organizational units For more information, in SAP ERP see Customizing for Integration with Other SAP Components  under Transportation Management  Invoice Integration Invoicing . Process controller In Customizing, you have set up the process controller for use with settlement documents. For example, if you want to use a strategy to create or preprocess settlement documents differently than the standard way, you can define your own strategy using the process controller and assign it to a specific service. For more information, see Customizing for Transportation Management  under Settlement  Configure Process Controller for Settlement  . Master data for charge management You have set up the master data in the Charge Management component. The system automatically calculates the transportation charges based on this master data. For more information, see Charge Calculation. Business partner determination You have the option of specifying a business partner determination profile, to enable the system to automatically assign business partners to a settlement document. For more information, see Customizing for Transportation Management  under Master Data Business Partners Define Partner Determination Profiles . Note The system includes the invoicing party, carrier, and payee in the settlement document by default. The system does not transfer business partners other than the invoicing party and the payee to SAP ERP, even if you enable additional parties in SAP ERP. Business document The system contains one or more freight orders, service orders, or freight bookings.

Process 1. You create the freight settlement document. Note the following system features: o You can create an individual settlement document for one freight order, service order, or freight booking, or a collective settlement document for multiple freight orders, service orders, or freight bookings. You can access the freight orders, service orders, or freight bookings from your personal worklist, in the relevant document overview, or in the Freight Settlement Overview . The system automatically creates the settlement document on the basis of the data in the freight orders, service orders, or freight bookings and calculates the transportation charges. You can create multiple freight settlement documents using the Mass Creation of Freight Settlement Documents function. To open the function, in SAP NetWeaver Business Client choose  Application Administration Background Reports Create Freight Settlement Documents . For more information, see Creation and Transfer of Freight Settlement Documents.

You can create settlement documents for individual stages in freight orders that contain nonlinear stages. This means you can create a settlement document for each pairing of a source location and destination location. For more information, see Freight Orders with NonLinear Stages. o You can create separate freight settlement documents for each of the invoicing carriers in a rail freight order, where you have a different invoicing carrier for each stage in the order. This feature gives you the flexibility to work with rule 11 business situations in North America. In rule 11 situations, the header carrier receives the order from the customer and can execute one or more of the stages. The header carrier is the carrier you specify in the General Data Transportation screen area of the freight order. The invoicing carrier is the carrier who bills the customer for the shipment. This is the carrier you specify at stage level in the rail freight order. For more information on rail freight orders, see Rail Transportation . You can create a settlement document for each additional agreement party if you have an o existing freight order or freight booking that contains one or more additional agreement parties. For more information, see Additional Agreement Parties. o The system uses certain criteria to divide settlements when you choose to create a collective settlement document. This can result in the system creating more than one settlement. For more information, see Split Criteria in Settlement Document Creation. o The system settles a parcel freight order in the same way as it settles a standard freight order. For more information on parcel freight orders, see Parcel Shipment. o When you create a freight settlement document, by default the system uses today’s date as the invoice date. You have the following options to manually override the system default: Implement BAdI: Determination of Invoice Date for Freight Settlement Documents . The system uses the settings you specify in thi s BAdI to determine the invoice creation date. For more information, see Customizing for Transportation Management  under Business Add-Ins (BAdIs) for Transportation Management  Settlement  Freight Settlement  . Enter an invoice date in the Mass Creation of Freight Settlement Documents background processing function. The system uses the date you specify in this background function as the invoice creation date if you have not specified a rule in the BAdI. 2. You review the settlement document details for consistency. You can review the settlement document details to check they are accurate, and you can update some of the data as needed. After you save any changes you make, you can check the consistency of the settlement document. If the automatic consistency check is successful, the system changes the consistency status of the settlement document to Consistent  and the life cycle status of the settlement document to Ready for Accruals . 3. You transfer the settlement document to SAP ERP to post accruals. Note the following system features: o SAP TM sends the settlement document to SAP ERP when you choose Save and Transfer . SAP TM transfers the settlement information, including the source location and destination location information for each stage in the settlement, to SAP ERP. The location information enables SAP ERP to determine different tax rates for different locations or countries. For more information, see Request Transportation Order Invoicing Preparation . o SAP ERP creates a purchase order and an SES and releases the SES to book accruals to accounting. The SES serves as the basis for invoice verification in SAP ERP. o When you transfer a settlement document to SAP ERP, you cannot change the settlement document until you have received a confirmation from SAP ERP. o In SAP TM, you can have multi ple charge types in a charge i tem. As standard, SAP ERP creates a billing item for a charge item, and applies tax to the billing item. If you need the flexibility to apply tax to individual charge types in a charge item, you must specify the settings in the following Customizing activities in Customizing for Transportation Management  under Settlement  Tax  : Define Tax for Countries You can define the countries in which you apply tax. o

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Define Tax for Charges You can define tax settings fo r the charge categories, charge subcategories, and charge types that you use in a country. You can use charge categories and charge subcategories to specify tax settings for a group of charge types in one step. Thi s avoids the need to specify tax settings for a large number of individual charge types. 4. SAP ERP confirms the accrual creation. Note the following conditions in the system: o If SAP ERP creates the accrual s, SAP TM receives a confirmation message from SAP ERP, and SAP TM updates the settlement document status to  Accruals Posted . o If SAP ERP does not create t he accruals and communicates errors back to SAP TM, the life cycle status of the settlement document changes back t o In Process and the confirmation status changes to  Accruals Failed . 5. SAP ERP verifies the expected invoice against the actual invoice. Note the following system features: o SAP ERP bases the expected invoice on the SES. If SAP ERP successfully verifies the a ctual invoice against the expected invoice, SAP ERP notifies SAP TM by updati ng the settlement document with the invoice ID and a ctual amounts. SAP TM updates the life cy cle status of the settlement document to Invoice verified in SAP ERP . o SAP ERP bases the automatically generated invoice on the data from t he settlement document, if you perform evaluated receipt settlement. 

Note You cannot cancel the settlement document when the invoice is posted against the settlement document in SAP ERP and the settlement document has a life cycle status of Invoice verified in ERP. You can cancel the settlement document at any other time in the process. If you do this, SAP ERP automatically cancels the accruals. When the accruals are canceled, the settlement document has the status Canceled . If SAP ERP cannot cancel the accruals, you cannot cancel the settlement document. Changes After You Post Accruals You can include certain changes in your freight costs after you post accruals in SAP ERP. You can use the following steps to make your changes: Add or change charge amounts directly in the existing freight order o If the new or changed amount results in the invoicing status of the freight order changing to Partially Invoiced , you can create a new freight settlement document to send the changed amounts to SAP ERP. o If the new or changed amount results in the invoicing status of the freight order changing to Over Invoiced , you can create a credit memo in SAP TM to send the changed amounts to SAP ERP. o If you do not want to create a new settlement document or credit memo, you can cancel the existing settlement document provided the life cycle status of the settlement document is not Invoice Verified in SAP ERP. You can then create a new settlement document that contains the complete amount including the changes. When you transfer the credit memo or the new settlement document to SAP ERP, SAP ERP creates a new purchase order and SES. Change charge amounts directly in t he freight settlement document, provided the life cycle stat us of the settlement document is not Invoice Verified in SAP ERP . When you transfer the settlement document to SAP ERP, SAP ERP cancels the existing purchase order and SES and creat es a new purchase order and SES. Reversing a Freight Settlement Document In your business you are a requester of transportation services, such as a shipper, and you have a close working relationship with a provider of transportation services, such as a carrier. You have enabled a selfbilling (evaluated receipts settlement) process with a particular service provider. You automatically pay the service provider according to the charge details in your freight order. Occasionally you can have the following business scenario: 1. Your carrier started to execute your transportation request. 2. You accrued the freight cost in SAP ERP. 

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3. You created a self-billing invoice to update the open item in your accounts payable. Then your carrier encounters some unplanned issues. For example, the carrier does not deliver a particular transportation service due to some exceptions, or there is an incorrect pricing date in SAP TM. You need to reverse the freight settlement document in SAP TM, and when you transfer the r eversal to SAP ERP, you need to reverse the a ssociated purchase order, service entry sheet (SES), and accruals posting in SAP ERP. You need SAP ERP to then create the self-billing invoice. This posts a credit memo that reverses the selfbilling invoice that SAP ERP created earlier. You can only reverse the freight settlement document when it is in the stat us Invoice Verified in SAP ERP . If the freight settlement document is not in this status, you can cancel the freight settlement document. The following table describes the steps you must take to reverse the freight settlement document: System Action Result Life Cycle Status in SAP TM SAP TM You choose Reverse SAP TM sends a reversal Reversal Requested in message to SAP ERP. Document in the freight SAP ERP settlement document. SAP ERP System creates an SES in The freight settlement Reversed in SAP ERP which it automatically document is reversed in enables the returns SAP ERP. indicator. SAP ERP You run transaction SAP ERP creates a credit Credit Memo Created in SAP ERP memo to reverse the MRRL (Evaluated Receipt accruals posting for the Settlement (ERS) with freight settlement Logistics Invoice document. Verification). Under the Transportation Management  screen area, you enter the relevant SAP TM freight order number. SAP TM updates the invoicing status of the relevant freight order to Not Invoiced , and you can create a new freight settlement document for the freight order.

More Information Subject Enable the system to determine the business partners that you use in different business document types Consolidate goods from different suppliers for one consignee before the main carriage, and load the goods into one container. Invoice integration with SAP ERP

Invoice verification in SAP ERP

Self-billing in SAP ERP

More Information Business Partner Determination Buyer's Consolidation

SAP Help Portal at http://help.sap.com/erp under SAP Central Component . Select an SAP enhancement package for SAP ERP 6.0. In SAP Library, choose SAP ERP Central Component  Logistics Logistics — General (LO) Integration of SAP ERP with SAP Transportation Management  . SAP Help Portal at http://help.sap.com/erp under SAP Central Component . Select an SAP enhancement package for SAP ERP 6.0. In SAP Library, choose SAP ERP Central Component  Logistics Materials Management (MM) Logistics Invoice Verification (MM-IV) . SAP Help Portal at http://help.sap.com/erp. In SAP Library, choose SAP ERP Central Component -> Logistics -> Materials Management (MM) -> Logistics Invoice Verification (MM-IV) -> Logistics Invoice Verification (MM-IV-LIV) -> Automatic Settlements ->

Evaluated Receipt Settlement (ERS).