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There is a requirement in one of my S/4HANA projects that the business places separate Purchase orders to different vendors for activities like ‘Customs clearance’, ‘Unloading’, ‘Warehousing’ etc when the Goods are transported from a vendor or to a customer. These activities are not carried out by the carrier who usually takes care of transportation.

Explored the concept of Service Orders in embedded TM which seems to be meeting the requirement  and hence thought to share the same in this blog.

Below image displays a typical import scenario with Ocean booking.

Separate service orders can be created on Freight booking or Freight order (depending on the actual scenario) for different services with different vendors. Charges for these  services can be calculated through usual Freight agreement , charge calculation sheet etc. Once the charge calculations are done and services are complete, then the Freight settlement document can be created which can subsequently be transferred for creation of Purchase order / Service entry sheet. Below image shows 2 service orders and also shows that the vendors for these service orders and the carrier (executing the transportation) are different.

These images are from embedded TM of S/4HANA 1809 release. The above scenario is for an import scenario with multi mode transport . It can also be applied for Export or domestic transports as well with embedded TM.

Also like to highlight that

  • This Service order functionality is not part of ‘Basic TM’ and use of Service order in embedded TM needs additional license for ‘Advanced TM’

  • Charge calculation is generally set at stage level for Freight order / booking, however charges for service order is carried out at Header or item level . BADI /SCMTMS/TCC_CALC_LEVEL needs to be implemented for Charge calculation of Service order to default the calculation level to Header or item (depending on the use case).



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