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Multimode transport for procurement

Former Member
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Hi friends. I am a MM consultant. I need your opinion on the folowing issue.

The client requirement is as follows.

1. They procure coals and ore from mines and ports. For this the Transport of raw material is a significant process in their business. The transport is arranged by the client (and not by their vendor).

2. Often multimode transport is used..like sea, then rail, then road.

3. Separate full fledged PO need to be given to the transporters.

4. Service tax and other relevant taxes are applicable on the transport activities.

5. All these transport cost need to be inventorised (to load on the material procured).

6. A number of other requirements exist due to which I am not willing to use Delivery condition (like FRB1) in main PO and use transporter number for this condition to map this scenario.

I am thinking of using the transportation module to map the scenario. That means

PO -> Inbound delivery -> Shipping -> GR w.r.t. the inbound delivery

My question is

1. Will the cost of transportation be loaded on the material if I use the above cycle?

2. Can I use the above cycle if WM (or lean WM) is not implemented?

Thanks in advance.

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Answers (2)

Answers (2)

Former Member
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You can implement transportation module without WM.

1)Maintain routes in the configuration.

2)Create a delivery document and aginst a delivery document create a shipment document.

3)Create a service PO with value limit on the frieght vendor.Mention all the suitable conditions on it.maintain delivery date in month in the service PO.this way u can use 1 service PO for entire month.

4) Create a shipment cost document against shipment document .

5) here you can specify transportation cost in the condition tab.

6)Check indicator "transfer" to transfer the cost

7) Once the cost is transferred a service entry sheet will be created automatically.

8)Do invoice by MIRO against service PO to pay to the transporter

.

philippe_marque
Active Participant
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Hi,

The transportation module is the best way to match multi-leg transports.

You can put the cost of the transports if you know the costs before the GR of the goods.

-> when you enter the costs of the transport and send them to FI/CO, a PO for each carrier is populated with a service entry sheet.

You don't need WM or lean WM.

Rgds,

Philippe