What is transportation charge type in SAP TM - Transportation Management?

SAP Term: transportation charge type

• Component: TM

• Component Name: Transportation Management

• Description: The classification of a charge line that plays an important role in how the system calculates the transportation charges for the charge line, for example, a base rate, surcharge, or discount. A charge type can result in a positive or negative value for a charge line. You can also specify whether a charge type can be an amount or a percentage value.

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• Key Concepts: 
  Transportation charge type is a feature of SAP Transportation Management (TM) that allows users to define different types of charges associated with transportation activities. This includes charges for freight, fuel, tolls, and other related costs. The charge types are used to calculate the total cost of a shipment and can be used to compare different transportation options. 
  
  How to use it: 
  Transportation charge types are created in the TM system and can be assigned to different transportation activities. When creating a shipment, users can select the appropriate charge type for each activity and the system will calculate the total cost of the shipment based on the charge types selected. 
  
  Tips & Tricks: 
  When creating transportation charge types, it is important to consider all potential costs associated with a shipment. This includes not only direct costs such as freight and fuel, but also indirect costs such as tolls and taxes. It is also important to consider any discounts or special rates that may be available for certain shipments. 
  
  Related Information: 
   SAP Transportation Management (TM) is a comprehensive solution for managing all aspects of transportation activities, from planning and scheduling to execution and invoicing. It provides users with powerful tools for optimizing transportation costs and improving customer service levels.