Shippimg Point in Order to Cash Business Process

Syed Faizan Ahmed Zaidi Assignment No: 5

16704

ERP Systems Designs and Implementation

Shipping Point in Order-to-Cash Business Process

Shipping point:

 An organizational unit in Logistics that performs shipping processing.

 The shipping point is the part of the company responsible for the type of shipping, the necessary shipping materials and the means of transport.

Shipping points are independent organizational entities within which processing and monitoring of the deliveries as well as goods issue is carried out. A delivery is processed by one shipping point only.

Criteria for Proposing a Shipping Point

A shipping point can be determined for each order item. How the shipping point is determined depends on three factors:

* The shipping conditions from the customer master record (Shipping screen)

For example, it might have been agreed with the customer that the goods are to be delivered as soon as possible.

* The loading group from the material master record (Sales/Plant Data screen)

You could, for example, specify a loading group that defines that the goods must always be loaded with a crane or a forklift.

* The delivering plant

This plant is determined per order item either from the customer master record or from the material master record. However, you can also enter it manually for each order item. For more information on determining the delivering plant, refer to the section

The following figure shows how the shipping point is determined using the data listed above.

Changing a Shipping Point

You are still able to change the shipping point proposed by the system in the sales order within specified limits. If you enter a shipping point that is not valid, you will receive the following error message from the system: "Shipping point is not available for this activity."

If the shipping point cannot be determined because, for example, the delivering plant could not be found in the sales order, an entry is made in the...