Introduction and Improvement

• For Freight Settlement Integration, Company Code and Plant are mandatory entities for the integration to Financial process.
• Till S/4HANA 1909, the company code is determined only during the Freight Settlement Posting. Plant in the Service Purchase Order created during Freight Settlement integration determines the Company Code. The Plant in the Service Purchase Order is determined from the Freight Settlement Document Type configuration.
• Overriding of the Plant in the Service Purchase Order requires BAdI or Enhancements.

Business Case

• Freight Settlement for a Global Company with multiple Company Codes or Plants.
• The modelling requires the same number of Freight Settlement Document Type as the number of Company codes which is not Optimal.
• Implementation of BAdI is required in most cases with multiple company codes.

New Feature with S/4HANA 2020

• Procuring Company Code in the Freight Document to capture the company code responsible for the Freight Cost.
• Determination of Procuring Company Code linked to Purchasing Organization or other cases (Centralized Purchasing) with manual entry within the Freight Documents.
• Introduction of additional Subcontracting checks in the Freight Document type customizing drives the company code determination and performs the required checks within the Freight Document Processing.

Subcontracting Check in Freight Order Type

• Procuring Company Code in the Freight Documents are taken over to the Freight Settlement Document and Posting Process.
• Plant for the Freight Settlement Document is taken over from the underlying transactions (Orders and Deliveries) if they are all unique, else defaulted using a new customization.
• Procuring Company Code in the Freight Documents are taken over to the Freight Settlement Document and Posting Process.
• Plant for the Freight Settlement Document is taken over from the underlying transactions (Orders and Deliveries) if they are all unique, else defaulted using a new customization.

Original Company Code in Freight Unit (FU)

• Original Company Code or Paying Company Code is available at Stage level for all the relevant requirement – Freight Unit / Transportation Units.
• Subcontracting Check: Drives the Procuring Company Code determination within the Freight Order. In addition, the Procuring Company Code on the Freight Order Header and Original Company Code from Freight Unit will be checked (for match) based on new setting “Subcontract. Checks” within Freight Order Type customizing.

Assign Default Plant for Company Code

Procuring Company Code in TM

• Procuring Company Code as an entity in Freight Documents and Freight Settlement Document.
• Procuring Company Code in the Freight Document is derived from the Company Code to which the Purchasing Organization is assigned in the Organization Hierarchy, else it must be entered manually (e.g., Central Purchasing).
• Procuring Company Code in the Freight Settlement Document is taken over from the Freight Document.

Procuring Company Code from FO and FSD

Procuring Company Code determination during Settlement Posting

Settlement Posting would follow the below access sequence regards to Procuring Company Code determination

1) Procuring Company Code available at Freight Settlement Document Header (New)

2) Procuring Company Code of the Plant which is maintained in the FSD Type Integration Customization (AS-IS)

Plant Determination during Settlement Process

Settlement Posting would follow the below access sequence regards to Plant determination :-

1) Plant maintained at FSD Type Customization will be used to determine the Plant and Procuring Company Code (AS IS).

Assign Purchasing Information for Posting

2) Plant is taken over from the underlying transactions (Orders and Deliveries) if they are all unique, else defaulted using a new customizing (New).

Assign Default Plant for Company Code

Note: The stages of the Freight Units (FU) and Transportation Units (TU) would hold the Original Procuring Company Code and Plant from documents in ERP.

Subcontracting check in Freight Document Type

• Values, Description and Behavior of “Subcontracting Checks” setting:
  • “BLANK” – No Additional Checks (Default)
    • • No automatic determination of Procuring Company Code on the Freight Order Header
      • No check (for match) between Procuring Company Code (from Freight Order Header) and Original Company Code of the Freight Unit
      • Procuring Company Code is not mandatory for the Freight Settlement Document creation (This is the behavior as before S/4HANA 1909)
  • “B” – Basic Additional Checks
    • • Automatic determination of Procuring Company Code on the Freight Order Header
      • Procuring Company Code on the FO Header becomes mandatory for Freight Settlement Document Creation
      • Procuring Company Code (from Freight Order Header) and Original Company Code of the Freight Unit is checked for match (This is new behavior)

Customizing for assigning Default Plant for Company Code

Assignment of Default Plant for Company Code

Scenarios to illustrate the usage of the Procuring Company Code 

Scenario – I) Freight Order with Freight Units from One Company Code TK01 and One Plant TKP1 with below configurations:-

• Configuration : Assign Purchasing Information for Posting

Assign Purchasing Information for Posting

• Configuration : Assign Default Plant for Company Code

Assign Default Plant for Company Code

Details from the Freight Unit

Details from Freight Unit

Freight Order and Freight Settlement Document has been created. Details from Freight Settlement Document and Service Purchase Order.

Document Flow

Plant details from Service Purchase Order

Scenario – II) Freight Order with Freight Units from One Company Code and Multiple Plants

Below Freight Order has been created for multiple plants TKP1 and TKP2 belonging to same company code TK01.

Freight Order for Freight Units from different Plants

Freight Settlement Document has been created and posted.

Document Flow

Details from the Service Purchase Order : Freight Settlement Document Posting created the Service Purchase Order with Plant maintained as Default Plant for Company Code

Plant Details from Service Purchase Order

Benefits from New Feature

• Offers enhanced and systematic handing of Procuring Company Code Determination in the Freight Document
• For Shipper scenario, the Plant determination during the Freight Settlement Document Posting is enhanced in order to derive the same underlying transaction (transaction based)
• Eliminates the necessity of setting up multiple Freight Settlement Document types for each company code
• Eliminates need of implementing the BAdIs to derive Company Code using Plant during Settlement Posting