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

SAP Term: route-based settlement

• Component: TM

• Component Name: Transportation Management

• Description: A setting in the forwarding agreement that enables the system to use a transportation chain with one or more pickups and deliveries as the basis for creating a single forwarding settlement document for one or more forwarding orders. All the forwarding orders are included in one freight order or freight booking. A route-based settlement can accommodate the following business situations: Multiple pickup and single delivery Single pickup and multiple delivery Multiple pickup and multiple delivery Predefined start and end

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• Key Concepts: 
  Route-based settlement is a feature of SAP Transportation Management (TM) that allows for the automatic settlement of freight costs based on the route taken by a shipment. This feature enables companies to accurately calculate and settle freight costs in a timely manner, without manual intervention. 
  
  How to use it: 
  Route-based settlement can be used to automatically calculate and settle freight costs based on the route taken by a shipment. The feature allows users to define the routes and associated costs, and then automatically calculate the cost of each shipment based on the route taken. This eliminates the need for manual calculations and ensures accurate and timely settlement of freight costs. 
  
  Tips & Tricks: 
  When using route-based settlement, it is important to ensure that all routes are accurately defined and that all associated costs are up-to-date. This will ensure that the cost calculations are accurate and that there are no discrepancies between the actual cost of a shipment and the amount settled. 
  
  Related Information: 
  For more information on route-based settlement in SAP TM, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SAP_TM/9.6/en-US/f8d7f3c2b7a14e8f9a7d3c2b3e5f9a1d.html