What is standard calculation method in SAP TM - Transportation Management?

SAP Term: standard calculation method

• Component: TM

• Component Name: Transportation Management

• Description: The typical process the system uses to determine transportation charges. The system calculates the charges based on the specified rate, calculation rule, and actual weight. If you do not specify a calculation method type, the system uses the standard calculation method. &Example& The rate is USD 10 and the calculation rule specifies that the rate is for every 100 kg. The weight is 1800 kg, so the system calculates the transportation charges as USD 180 1800 kg/100 kg * USD 10.

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• Key Concepts: 
  Standard calculation method is a feature of SAP Transportation Management (TM) that allows users to define the cost calculation logic for transportation services. It enables users to define the cost components, such as distance, weight, volume, and other factors, that are used to calculate the cost of a shipment. The standard calculation method also allows users to define the cost calculation logic for different types of transportation services, such as air freight, ocean freight, and road freight. 
  
  How to use it: 
  To use the standard calculation method in SAP TM, users must first define the cost components that will be used in the cost calculation. This can be done by creating a cost component structure in the system. Once the cost components have been defined, users can then create a standard calculation method and assign it to a transportation service. The standard calculation method will then be used to calculate the cost of the shipment based on the cost components that have been defined. 
  
  Tips & Tricks: 
  When creating a standard calculation method in SAP TM, it is important to ensure that all of the necessary cost components have been included in the cost component structure. This will ensure that all of the relevant costs are taken into account when calculating the cost of a shipment. Additionally, it is important to ensure that all of the necessary parameters are set correctly when creating a standard calculation method. This will ensure that the correct costs are calculated for each shipment. 
  
  Related Information: 
  For more information about using standard calculation methods in SAP TM, please refer to SAP Help documentation or contact your local SAP support team. Additionally, there are many online resources available that provide detailed information about using standard calculation methods in SAP TM.