What is 'profitability calculation' in SAP TM - Transportation Management?

profitability calculation - Overview

• Component: TM

• Component Name: Transportation Management

• Description: The calculation of the profitability of a shipment request.

profitability calculation - Details

• 
  Key Concepts: 
  Profitability calculation in SAP Transportation Management (TM) is a process of analyzing the cost and revenue associated with a transportation activity. It helps to identify the profitability of a particular shipment or route, and can be used to optimize transportation costs. 
  
  How to use it: 
  Profitability calculation in SAP TM is done by entering the cost and revenue associated with a shipment or route into the system. The system then calculates the profitability of the shipment or route based on the data entered. This information can then be used to optimize transportation costs and improve efficiency. 
  
  Tips & Tricks: 
  When entering cost and revenue data into SAP TM for profitability calculation, it is important to ensure that all relevant data is included. This includes not only the cost of transportation, but also any additional costs such as fuel, tolls, taxes, etc. Additionally, it is important to ensure that all revenue associated with the shipment or route is included in the calculation. 
  
  Related Information: 
  SAP TM also provides other features such as route optimization, freight rate management, and freight audit & payment. These features can be used in conjunction with profitability calculation to further optimize transportation costs and improve efficiency.