What is destination-based distance cost in SAP TM - Transportation Management?

SAP Term: destination-based distance cost

• Component: TM

• Component Name: Transportation Management

• Description: A calculation logic whereby the distances from the source location to the destination location, including all transshipment locations, are totaled and multiplied by a cost factor. The cost factor forms part of the direct transportation lane between the source location and the destination location and is based on the geographical location of the destination. The probability of the destination location of one transport being the source location for the next transport determines the amount of the cost factor.

Smart SAP Assistant

• Key Concepts: 
  Destination-based distance cost is a feature of SAP Transportation Management (TM) that allows users to calculate the cost of transportation based on the distance between two locations. This feature takes into account the cost of fuel, tolls, and other factors to provide an accurate estimate of the cost of transportation. 
  
  How to use it: 
  To use destination-based distance cost in SAP TM, users must first enter the origin and destination locations. The system will then calculate the distance between the two locations and use this information to estimate the cost of transportation. The user can then adjust the cost based on any additional factors, such as fuel costs or tolls. 
  
  Tips & Tricks: 
  When using destination-based distance cost in SAP TM, it is important to ensure that all relevant factors are taken into account. This includes fuel costs, tolls, and any other costs associated with transportation. Additionally, it is important to keep track of any changes in these costs over time, as they can have a significant impact on the overall cost of transportation. 
  
  Related Information: 
  For more information about destination-based distance cost in SAP TM, please refer to the official SAP documentation. Additionally, there are many online resources available that provide detailed information about this feature and how to use it effectively.