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Introduction - 

In this blog post, you will learn how SAP TM enables you to commission a carrier to transport parcels from a shipping point to several consignees. You can create parcel shipments in SAP TM based on deliveries from an ERP system / S4CORE.

Users can then either select a direct shipment option for the parcel shipment or opt for an automatic option based on the DSO Rule configuration within Freight Unit Type configuration and plan and execute the transportation of shipments to the consignees.

The direct shipment option involves selecting a carrier with the relevant transportation services based on carrier service level (For example Express Delivery, Standard Delivery) while considering the applicable charges.

The case that serves as the basis for the detailed scenario is as follows: the sales assistant receives an urgent request for goods and enters a sales order. Immediately after the material’s availability has been checked and the sales order has been saved, an outbound delivery is created. The process in SAP TM follows the standard document flow for planning and settlement

Solution Approach - 

The following section provides an important configuration step to process the parcel shipment process in SAP TM.


  • Create a Freight Unit Types for Parcel Shipment and DSO setting using the below-mentioned node:

In this setting, the user can opt for automatic determination of the DSO option or determine DSO in the Freight unit manually.

The user should also define the DSO strategy and rules which control how the DSO option is determined apart from the above setting.

DSO DEF - > Determine the DSO option along with carrier assignment. In this option selected user needs to run the report /SCMTMS/DIRECT_SHIPMENT_BATCH or tcode /SCMTMS/DSO_BATCH to convert FU to FO or assign to existing FO.

DSO_RESULT-> after DSO DEF steps are performed system either converts the Freight unit to a Freight order or assigns it to an existing FO if the criteria match for source location, carrier, and pickup Date using the best DSO option available.


– SPRO -> IMG -> Transportation Management -> Planning ->Freight Unit -> Define Freight Unit Type.

Freight Unit Type Configuration



  • Define Freight Order Type using the below-mentioned node:

  • SPRO -> IMG -> Transportation Management -> Freight Order Management -> Freight Order -> Define Freight Order Type.

Freight Order Type


In the above setting important setting is the sequence type of stages which is 08 Star Shaped Based on FU Stages which means it has the same source location and different end customer location. In the case of a parcel manifest, there can be multiple parcels to be delivered to different customers in one freight order.


  • Carrier Selection Setting in planning profile:

Choose the direct shipment option in the carrier selection setting. Assign the same setting in the Freight unit type configuration.

Assign TSPS_DEF planning strategy to choose carrier.

TM Fiori App ->Planning Profile.

Carrier Selection Setting-Planning Profile


  • Master Data - Carrier Service Level in Business Partner using the below-mentioned node:

SAP Easy Access -> BP

Carrier Business Partner BP

  • Master Date - Define Freight Agreement using the Fiori app ->Edit Freight Agreement.

-Create a new Freight Agreement type for Parcel (CEP1 in this case)

-As per the service level there are three calculation sheets which linked to different transit times. Please refer below screenshot. Hence for each service level, there are different transit times. For example, Service Level D1 -> One-day delivery hence transit time is 24:00

Freight Agreement

Freight Agreement Item


  • Master Data - Define Rate table based on weight and service level using the Fiori app Create Rate table Definition.

As per the below screenshot example, Carrier ZCARDHL charges 100 per kg with service level D1-(A Day delivery).

Rate Table based on Weight and Service Level


Testing - 


  • Created Sales Order for Parcel Shipment

Sales Order: 107 - >

The requirement date is 10th Feb 2023 and hence pick up date is 08th Feb ( As per Route determination and shipping condition D2 which is 2 days delivery)

Sales Order 107 Created

  • Created outbound Delivery 80000170 for Parcel Sales Order

HU was created as per packing instructions. (5 CAR in one Box)

Outbound Delivery Created

Handling Unit in Outbound Delivery

  • Once Delivery saves below activities are executed in the background automatically.


Freight Unit 4100000100 Created based on FUBR (Freight Unit Building Rule)->Service level copied from DSO option in Freight unit

Freight Unit Created Auto

Since DSO strategy DSO_RESULT is configured in Freight Unit type configuration, Freight order 6100000652 was created automatically. Carrier already selected in FU as per DSO option.

Freight Order created as per DSO Rules

Charges for Freight order 6100000652 are calculated automatically. >It determines calculation sheet CEP_ZCARDHL_D2 based on the service level mentioned in the Freight agreement item.

Freight Order Charge Calculation_01

Freight Order Charge Calculation_02

Freight Order Charge Calculation_03


  • new Sales order 108 and Delivery 80000171 for new customer ZCUST_VIR were created for the same destination zone (Intrazonal has been defined for a group of customers) and the same pickup date, the new Freight unit for delivery gets assigned to the existing Freight Order.

New Delivery FU assigned

Parcel Details


  • Charges are updated as per the newly updated assignment of the Freight Unit

Charges Updated


  • Post Freight Settlement Document. > in this example first FSD is posted before the second FU gets assigned. Hence two FSDs crated for two Parcel orders within one Freight unit.

FSD created and Posted


This blog post walks you through various steps involved in Parcel shipment using the DSO option.
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