Freight settlement and carrier invoicing processing

Once the PGI is initiated, the carrier will deliver the goods to the customer and will send the proof of delivery to the shipper/manufacturer. The next step in the process is to pay the carrier for the shipment and settle the charges. Figure 11.37 shows the freight settlement and carrier invoice process:

Figure 11.37 – Freight settlement and carrier invoicing process

Let's go through this process step by step:

1. A sales order is created in CRM; it replicates to the SAP ERP system. The same sales order is then replicated to the SAP TM system.
2. An order-based transportation requirement is generated (process considering OTR-based planning).
3. A freight unit is generated from the OTR document and the freight order is planned thereafter.
4. Once the delivery and shipment are processed from the freight order and the transportation charges are calculated appropriately in the freight...