Shipment - Hints and Limitations
Defining Handling Unit Structure
Loading of Handling Units to Consolidated Shipment
Shipment Completion and Delivery
Delivery Confirm Customer Order
A shipment is defined as a dispatch of goods from one party to another, where the receiver ID, delivery address, ship-via, delivery terms, and shipment type are the common denominators for all the source lines (eg. customer order lines or shipment order lines). One shipment ID can contain a number of source lines from different sources, as long as the sender, sender address, receiver, receiver address, ship-via, delivery terms, and shipment type are the same on all the lines. Thus, a shipment can be useful if you want to handle several sources with outbound logistic requirements (eg. Shipment Order) as one unit and dispatch the goods to one address. The shipment facilitates one single point of entry, handling, and delivery of a shipment, including printing of all necessary shipment documents.
First a shipment is initiated and source lines are connected to the shipment manually or automatically. When a source line is connected to a shipment, the remaining quantity to be delivered is assigned to the shipment as a shipment line. The quantity of a source line can be connected to several shipments in parallel in order to handle a limited transport capacity, a backorder situation where you want to prepare the next delivery in advance, a customer requiring a certain delivery schedule etc. In other words, a shipment line is a subset of the quantity of a source line. Then the shipment process consists of main activities needed in order to proceed with the shipment. In the shipment process, the shipment can have the Preliminary, Completed or Closed status. In the table below you can see all the main activities in the shipment process and the status of the shipment as the main flow proceeds:
| Main Activity | Shipment Status |
| Reserve | Preliminary |
| Create Pick List | Preliminary |
| Print Pick List | Preliminary |
| Report Picking | Preliminary |
| Complete | Completed |
| Deliver | Completed |
| Undo Delivery | Completed |
| Close | Closed |
When a shipment is initiated, it assumes the Preliminary status. At this stage, you can make a modification, a reservation, create a pick list, print the pick list and pick the report for the shipment. When a shipment is in the Preliminary status, you can make a transition to the Completed status, when packed and ready for delivery. You should note however, that it is also possible to change what is to be delivered by converting a shipment in the Completed status back to a Preliminary status, as long as the shipment has not been delivered. The final stage of a shipment is when it reaches the Closed status. At this point, further changes to most of the content of the shipment is not allowed and it is considered final and ready for invoicing.
In addition to the main activities, the shipment process also consists of a set of optional activities that you can perform if needed. This includes printing of documents, packing of goods into handling unit structure, connection to a consolidated shipment etc. These optional activities can be performed at any stage of the shipment process. For example, they can be performed in an early stage in order to prepare the shipment and its documents in advance. If changes to the shipment occur later, the optional activity can be performed again until considered as final.
The shipment type of the shipment is essential to control how the shipment process is executed. The shipping process of the company determines how the shipment type should be defined to get a streamlined and effective process. For instance, the shipment type controls:
The shipment type to use is decided by the source that connects to the shipment. When the source is customer order, defined shipment types can be entered as a default per site, per customer delivery address or per supply chain relation. A default shipment type defined per supply chain relation has the highest priority, then per customer delivery address and lastly per site. The default shipment type is retrieved when you enter a customer order or a shipment, but you can manually enter another shipment type if needed. Basically, the control of the progress is handed over from the order type of the customer order to the shipment type as soon as a shipment is created. When the source is Purchase Receipt Return or Supplier Material, defined shipment type can be entered as default per supplier delivery address. The default shipment type is retrieved by the relevant shipment line when you enter a receipt return or a supplier material line (purchase component line with Deliver with Customer Order option set to false).
Optionally, it is possible to initiate a consolidated shipment and manually connect shipments that have not been delivered yet or automatically if enabled in the shipment type according to defined consolidation rules. The consolidated shipment represents one departure of several shipments from the specified site, to each of the delivery addresses of the connected shipments. All the activities in the shipment process, apart from report picking, can then be executed from the consolidated shipment. The benefits with the consolidated shipment are:
The shipment process allows for much flexibility in the outbound logistic process, and thereby facilitates the following:
As mentioned earlier, a shipment type must be defined to run the shipment process. Apart from that, there is no basic data requirements as such prior to using the shipment function. However, it will be useful to note the following:
Among the basic shipment information such as the ship-via, delivery terms, and forward agent ID, default values are retrieved from the receiver's delivery address specified on the shipment when it is initiated. You can modify these default values, but note that if the address details, ship-via and delivery terms are modified after lines have been connected to the shipment, this will not be automatically updated in the connected source lines.
With regard to attaching parts to handling unit structure, you should note that it is not a must for a shipment to have a handling unit structure. However, to enable attaching shipment lines or automatic packing into a handling unit structure, the following must be maintained in advance:
- On the Part Basic Data/Storage Requirement Groups/Capacity tab, define the maximum quantity per handling unit type and part unit of measure for the group of parts.
- On the Part Catalog/Handling Unit Capacity tab, define the maximum quantity per handling unit type and part unit of measure for the part.
- In the Parts per Handling Unit page, define the maximum quantity per part and part unit of measure for the handling unit.
A shipment process enables proactive shipment planning and re-planning. The process enables you to create preliminary shipments, containing quantities from source lines in different statuses from various sources (eg. customer orders, shipment orders, purchase receipt return, repair RMAs, supplier material and project deliverables), and then you can work with the connected quantities as shipment lines. The shipment process as detailed above will generally include a number of activities and different stages. The shipment type of the shipment, controls if the activities in the the shipment process should be performed manually or automatically. In addition, the shipment type controls whether or not any optional activities should be performed automatically in the shipment flow. The process also enables the possibility to manually or automatically connect several shipments to a consolidated shipment as long as the shipment is not delivered.
In order to initiate a shipment, you need to first enter the receiver, site, and delivery address. If the receiver type is customer, with this initial information, other information such as delivery terms, ship-via, and the forward agent ID connected to the customer is automatically included in the shipment. If the receiver type is supplier, with this initial information, other information such as delivery terms, ship via, and the forward agent ID connected to the supplier is automatically included in the shipment. The default fetching of the initial information is done in the same way as it is done in respective source reference type.
A source line can be connected automatically to a shipment, if the receiver, site, delivery address, ship-via, delivery terms and shipment type is the same, if the shipment status is Preliminary, the shipment is not blocked for automatic connection of source lines and the consolidation parameters defined in the shipment type is the same. Automatic connection to shipment can be be triggered in different ways for different source reference types:
In addition it is possible to connect from the Available Lines for Shipments page, using the same automatic connection rules mentioned above i.e. considering consolidation rules, potential creation of consolidated shipment. It is the same if you use the Create Shipment Line command for project deliverables shipment plans.
This is defined in the Shipment Type, which is defaulted into each source line according to rules defined i each source reference types. As an example Purchase Receipt Return and Supplier Material, get this defaulted from the supplier's default delivery address, Outbound Address Information. The shipment type can be changed manually.
When you initiate a shipment manually, you begin by creating a shipment header in which the receiver, site, and delivery address is entered. To connect there must be a remaining quantity that is still to be delivered for the source line i.e. what is already delivered and what is already connected for delivery on shipments must be less than the source quantity. Then there are specific condition for each source reference type, e.g. for customer order lines the status must be in the Released, Reserved, Picked, or Partially Delivered.
You should note that at this stage, it is already possible to print preliminary documents such as delivery notes and consignment notes. However, before a handling unit structure has been defined for the shipment, these documents will not be complete. Defining a handling unit structure can be done automatically or manually. When executed automatically, each handling unit is cross-referenced against one or several shipment lines. When created manually the shipment lines are manually connected to the handling unit structure, or chosen not to be connected at all. The ability to automatically generate a handling unit structure enables an accurate weight and volume calculation of each container. It also provides the ability to track and trace individual containers and their exact contents in terms of quantity, part number, source line, and lot/batch number and serial number. You can make modifications to the automatically created handling unit structure by adding, deleting, or moving handling units within the structure as desired, and also by modifying the calculated weight and volumes.
In addition, it is also possible to initiate a consolidated shipment and manually or automatically connect shipments not delivered yet. The consolidated shipment represents one departure of several shipments from the specified site, to each of the delivery addresses of the connected shipments. All the activities in the shipment process, apart from report picking, can then be executed from the consolidated shipment. When executed from the consolidated shipment all activities that prepare the shipments for loading are sorted in load sequence order while the activities more related to unloading are sorted in reversed load sequence order e.g. sorting of delivery notes.
Once a source line is connected to a shipment, the Reserve and Create Pick List command in the shipment header can be used to reserve all shipment lines and create pick list(s). Once the pick list is created, and picking is performed, you can proceed to report picking or to report picking with differences using the right mouse button options in the shipment header. With this approach, it is possible to prepare a shipment at an early stage, and to prepare documents.
In general when connected to shipment all activities such as defining a handling unit structure, delivery, and printing of shipment documents must all be performed in the shipment. However, reservation and report picking is still possible to perform in the normal processes i.e. those available in the Handling Reservation and Picking process, e.g. batch job for reservation, batch job for creation of consolidated pick list, printing pick list and report picking.
Defining a handling unit structure is not a must for a shipment. However if there is a need, defining a structure can be done automatically or manually, and each handling unit is cross-referenced against one or several order lines connected to the shipment. The ability to define a handling unit structure enables an accurate weight and volume calculation of each container. It also provides the ability to track and trace individual containers and their exact contents in terms of quantity, part numbers, source order lines, and lot/batch numbers. You can make modifications to the automatically created handling unit structure by adding, deleting, or moving handling units within the structure as desired.
You can print the following documents from a shipment. You must note that each of these documents can be printed at various stages in the shipment process, but they will not be final until the shipment is closed.
Note that all of these documents are optional activities that can be printed automatically in the shipment flow depending on the shipment type.
If you print preliminary documents before a handling unit structure has been defined for the shipment, these documents will not be complete.
The loading to the transport vehicle is needed in order to be able to deliver. Optionally, this can be handled in the application. For more information: Loading of Handling Units to Consolidated Shipment
When the shipment is packed and ready for delivery, the shipment should acquire the Completed status. This means that no more parts should be included in or excluded from the shipment and the handling unit structure is fixed. If you want to change anything, you should turn the shipment back to the Preliminary status.
If a shipment is connected to a consolidated shipment the delivery must be executed from the consolidated shipment for all connected shipments since it is considered as one departure.
You can send and resend a dispatch advice manually, once the delivery of the shipment is done. You need to configure the DESADV as a message, and enable automatic sending if desired. This is done differently for different source reference types. For example for customer order this is achieved, if you maintain the parameter as DESADV on the customer, on the Customer/Message Setup tab. Furthermore, if you wish to automatically send a dispatch note, you should enable the Send Dispatch Advice Automatically option on the Customer/Sales/Message Defaults tab.
It is also possible to Send Freight Booking Message automatically when added as optional event to the Shipment Type or manually by using command in shipment header. Note: This command is available for any shipment status, except cancelled.
Transport planner /warehouse worker can determine whether the tracking information and charges have been received through the ‘Freight Information Received’ indicator. This freight information message is sent by freight provider and it includes Shipment ID, Forwarder details, Freight provider, Freight terms, External carrier details, Tracking ID and tracking URL, Freight currency, Freight cost, Freight HU details and etc.
If you need to do changes to the shipment even after delivery, it is possible to Undo Delivery.This will reverse the delivery to Completed status and then you can do Undo Complete and make changes as needed.
Note that if used Shipment Type has been configured to enable Automatic Receipt of a Shipment Order, the delivery will automatically trigger a receipt of the Shipment Order.
Tax Document is used to report taxes for goods movements between sites within the same company using a shipment. For source ref type Shipment Order or Internal Customer Order, when the shipment is completed, you can create an Outgoing Tax Document. This can be done manually or automatically depending on the shipment type. To be able to create the Outgoing Tax Document Create Tax Document option in Company/Tax Control/Supply Chain tab must be enabled.
In order to have an Official Document Number attached to the Outgoing Tax Document, relevant basic data needs to be setup on the Official Document Number Component page and Company/Invoice/General/Official Document Number Generation should be Automatic or Manual.
Closure of the shipment can be automatic or manual, depending on the shipment type. The shipment being closed means that the goods have left the sender, and no further changes to the content of the shipment is allowed. The only activities still allowed when a shipment is closed, is to create shipment invoice (for source ref type customer order), send or resend the dispatch advice, print shipment documents, transport labels.
For source ref type customer orders, when the shipment is closed, you can create and print an invoice for the shipment. This can be done manually or automatically depending on the shipment type. To create the invoice per shipment is optional. A normal or collective invoice can be created in the normal way if required.
The purpose of delivery confirming an order is to confirm the customer's acceptance of a shipment prior to it being invoiced. Depending on the agreement a company has with its customers, the following scenarios are possible:
Delivery confirmation is performed as soon as goods are shipped. No interaction is required from the user.
This is usually performed by a responsible sales person. The customer notifies the seller that the shipment has been received and is accepted, which is followed by confirming acceptance.
Delivery confirmation is performed via data received in an incoming message.
Available Lines for
Shipments
Batch
Create Shipment Invoices
Consolidated
Shipment
Create Shipment
Invoices
Customer Order
Deliver Customer
Orders
Distribution Order
Report Picking
of Pick List Lines
Report Picking of
Pick Lists
Shipment
Shipment Lines
Shipments
Site to
Customer Supply Chain Parameters
Site to Site
Supply Chain Parameters
Handle Picking
Shipment Delivery
Create Shipment
Deliver Shipment