on 2021 Aug 09 12:20 PM
Hi Experts,
while configuring the Organizational structure in Transportation Management
1.Is defining the Organizational unit function company is mandatory.
2.If we do not maintain the organizational unit function company , what would be the impact.
3.Could you please provide insights on this.
Regards
Praveenraj
Request clarification before answering.
Hi Praveenraj,
there is no direct impact if you do not configure the org structures, but I always use them and let me say what it can be used for:
In my view, the most critical usage of the org structure in TM is selection and grouping. Say you are in an international company with 10 countries, then it often makes sense to use the country as purchasin g organisation because you want to show only freight units of a certain country in the cockpit.
Within the countries, there may be further transportation relevant groups, such as inbound and inbound or local departure plants. if that is the case, you can use the purchase group or planning and exec orgs and groups to represent that.
At the end, the user in france can easily find his freight order and/or freight unit by entering the org structure into the search window and you can easily build different selection profiles, so that the french user sees only the French FUs and FOs and the German user sees only the German FUs.
here comes the next advantage of org structures in TM: Later on , you will want to build authorization roles such as French TM Planner, German TM Planner, Indian TM Planner. if you org structures comprise the departure country, you can use it to build your authorization profiles/roles. Then, you can assign these roles to your cockpit profiles in PLS.As a result, the French planner will see only the profiles that are relevant to him.
Finally, it makes a big difference in freight cost calculation: if you will pre-calculate the transport cost within the FO or FB, you need to have a purchase organisation and assign the charge profile to it in PPOME. This decides whether charges are calculated in Euro or US dollars. the pruchase organisation needs to be assigned to your freight agreement and to the freight booking/order, else the agreement cannot be assigned to the freight order and charges cannot be calculated. Another good reason to make Purchase orgs by country. Often , freight costs are managed by country centrally. Different carriers for different countries. But, you can also assign several purchase orgs to the same agreement (if you allow it by agreement type) and thus allow the same agreement for different organisations.
If you are in s/4 Hana embedded, you need to be careful here. Normally, Purchas org in TM and ECC can be different, but in s/4 Hana, you need to be able to assign them. In my experience, the Purch org in MM is often also by country in big organisations, but better check it.. you can build a TM purchase org specifically too. it is ok to have a different one as long as you can assign an MM purchase org.
To default the org structures, use condition /scmtms/*EORG*. its critical to use the external ID. This external id never changes between the systems whereas the internal id does. Therefore, you need to overwrite the internal number with an external one in PPOCE. You can default the org structure based on departure or arrival location and many other criteria (DAD).
In summary, it is good practise to use the org structures to group your freight units and freight orders in a way that the transport organisation of the company is structured: If you do not use them, you will have to use enhancements to group your FUs/FOs and that is not necessary. without purchase org, no charge calculation. You have French and German planners and inbound and outbound planners or planners in Berlin and Munich. Then, this should be reflected in your org structures. Always keep in kind that users have to have good and easy ways to find their specific documents in the system and find out how they need to search. Use the purchase org as the country and make the purchase groups as local entities within this country. Use P&E Org and group as Inbound and outbound or distinguish FTL and LTL or bulk and packed. Ask your logistics experts how they are grouped as dispatchers. This will provide the org structures that you need.
Hope it helps.
Petra
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Hi Petra,
Thanks for the detailed explanation.
Regards
Praveenraj
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