What is execution-based settlement in SAP TM - Transportation Management?

SAP Term: execution-based settlement

• Component: TM

• Component Name: Transportation Management

• Description: A process of invoicing charges, where forwarding orders are not rated and invoiced individually, but are invoiced based on how the forwarding orders are actually executed in the transportation process. Examples of execution-based settlement are route-based settlement, trailer-based settlement, and settlement for forwarding orders in a buyer’s consolidation.

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• Key Concepts: 
  Execution-based settlement in SAP Transportation Management (TM) is a process that allows for the automatic settlement of freight costs based on actual shipment execution data. This process eliminates the need for manual entry of freight costs and ensures that all costs are accurately accounted for. 
  
  How to use it: 
  Execution-based settlement in SAP TM is enabled by setting up a settlement profile in the system. This profile defines the criteria for how the freight costs should be calculated and settled. Once the profile is set up, the system will automatically calculate and settle the freight costs based on the actual shipment execution data. 
  
  Tips & Tricks: 
  When setting up an execution-based settlement profile, it is important to ensure that all relevant criteria are taken into account. This includes factors such as shipment weight, distance, and mode of transport. Additionally, it is important to ensure that all relevant cost components are included in the settlement profile. 
  
  Related Information: 
  For more information on execution-based settlement in SAP TM, please refer to the official SAP documentation at https://help.sap.com/viewer/product/SAP_TM/9.6/en-US.