What is route-based distance cost in SAP (TM - Transportation Management)?

SAP Term: route-based distance cost

• Component: TM

• Component Name: Transportation Management

• Description: A calculation logic that adds up the expenses for transporting goods from the source location to the destination location via one or more transshipment locations based on the costs per stage.

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• Key Concepts: 
  Route-based distance cost is a feature of SAP Transportation Management (TM) that allows users to calculate the cost of a shipment based on the distance traveled. This cost calculation is based on the route taken by the shipment, taking into account factors such as fuel costs, tolls, and other associated costs. The route-based distance cost feature also allows users to compare different routes and select the most cost-effective option. 
  
  How to use it: 
  To use the route-based distance cost feature in SAP TM, users must first define their transportation network. This includes defining the routes, distances, and associated costs for each route. Once this is done, users can then enter their shipment details into the system and select the route they wish to use. The system will then calculate the total cost of the shipment based on the route chosen. 
  
  Tips & Tricks: 
  When using the route-based distance cost feature in SAP TM, it is important to ensure that all routes and associated costs are up-to-date. This will ensure that users are able to get an accurate cost calculation for their shipments. Additionally, users should also consider other factors such as delivery time when selecting a route, as this may affect the overall cost of the shipment. 
  
  Related Information: 
  For more information on SAP TM and its features, please refer to the official SAP website or contact your local SAP representative. Additionally, there are many online resources available that provide detailed tutorials and guides on how to use SAP TM and its features.