What is invoicing carrier in SAP TM - Transportation Management?

SAP Term: invoicing carrier

• Component: TM

• Component Name: Transportation Management

• Description: The logistics service provider who is responsible for the freight agreement with a customer and the settlement of the freight charges for a full transport, or for one or more stages in a transport. The term invoicing carrier was introduced with rule 11 rail scenarios in North America, where some stages of a freight order can be executed by carriers who are different from the carrier who received the order. In a rule 11 scenario, the execution carrier is responsible for settling with the customer. For example, in North America, a rail carrier receives a freight order to move a container from the west cost to the east coast. The main rail carrier engages another rail carrier to transport the last on-carriage stage of the order. The main carrier settles with the customer for the pre-carriage and main carriage stages, the on-carriage carrier settles with the customer for the on-carriage stage. The main carrier is the invoicing carrier for the pre-carriage and main carriage stages, t

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• Key Concepts: 
  Invoicing carrier is a term used in SAP Transportation Management (TM). It is a carrier that is responsible for invoicing the customer for the services provided. The invoicing carrier is usually the same as the transportation carrier, but it can also be a third-party provider. 
  
  How to use it: 
  In SAP TM, the invoicing carrier is specified in the shipment document. This information is used to determine who will be responsible for invoicing the customer for the services provided. The invoicing carrier can be changed at any time during the shipment process. 
  
  Tips & Tricks: 
  When specifying an invoicing carrier, make sure that it is the same as the transportation carrier. This will ensure that all charges are billed correctly and that there are no discrepancies between the two carriers. 
  
  Related Information: 
  Invoicing carriers are also used in other SAP modules such as Materials Management (MM) and Sales and Distribution (SD). In MM, they are used to determine who will be responsible for invoicing the customer for goods purchased. In SD, they are used to determine who will be responsible for invoicing the customer for services rendered.