SHIPPING POINTS

Why Is a Shipping Point Configured?

In the SAP system, a Shipping Point is the physical location from which a product is sent to the customer. This can be a factory, warehouse, logistics center, or an outsourced distribution point. In order for SAP to initiate the delivery process, every delivery must be assigned to a shipping point.If a shipping point is not configured, the system cannot create a delivery, and therefore the sales order process cannot be completed. For this reason, defining a shipping point in SAP and ensuring that the system can determine it automatically is of critical importance.

Logic of Shipping Point Determination

This diagram shows how the SAP system determines the shipping point. The system considers the following three pieces of information:

1. Shipping Condition → Comes from the customer master data (e.g., standard delivery, express delivery, etc.).

2. Loading Group → Comes from the material master data (e.g., manual loading, loading with forklift).

3. Plant → Refers to the location (factory or warehouse) where the material in the order is stored.

The combination of these three elements allows SAP to automatically determine the appropriate shipping point.

Functional Contribution: Thanks to this configuration, SAP does not prompt the user to enter a shipping point during order creation; it automatically selects the appropriate one. This speeds up processes and helps prevent errors.

This visual illustrates how multiple plants can be connected to one or more shipping points:

• Each plant can work with one or more shipping points.

• A single shipping point can handle deliveries from multiple plants.

• Warehouses, logistics centers, or third-party logistics providers can also serve as shipping points.

Functional Contribution:Thanks to this flexibility, companies can consolidate complex logistics networks within SAP. For example:

• The Ankara plant can ship small products from one shipping point and large products from another.

• The Istanbul warehouse can ship products coming from both the Istanbul production facility and the Kocaeli facility.

Now, let's walk through this process step by step.

Step 1: Define Shipping Point

SPRO → SAP Reference IMG → Enterprise Structure → Definition → Logistics Execution → Define shipping point

Select "New Entries".

The field opened from this window determines the source from which the system will retrieve the loading time when creating a delivery. This information directly affects the calculation of the delivery date.

• Empty: No loading time determination: If this field is left blank, the system does not calculate loading time. No additional time is added when determining the delivery date. This option is suitable for simple or non-time-critical processes.

• A: Route dependent: The loading time is determined based on defined routes. A loading time must be specified for each route. This is suitable for detailed logistics operations where routes vary.

• B: Route independent: The loading time is retrieved from a central definition, regardless of the route. Even if the route structure is used, loading time is not linked to it.

• C: Default from shipping point: The loading time is taken directly from the values defined in the shipping point. This is generally the most preferred method. It allows the system to operate using a fixed and directly accessible source. In this case, the system considers the "Loading Time (Days/Hours)" information defined in the shipping point.

Loading time refers to the time required to load the packed goods onto the truck. For example:

• If the products are packed on May 12,

• And the loading time is 1 day,

• Then the shipment will be dispatched on May 13.I've set the loading time to 1 day.

Pick/Pack Time is the time needed to pick and pack the items from the warehouse for the order. For example:

• Order date: May 10

• Pick/Pack time: 2 days

• Earliest delivery date: May 12I've also set the pick/pack time to 1 day.

Factory Calendar defines the working days of the shipping point, including weekends and public holidays. For example:

• Pick time: 1 day

• Loading time: 1 day

• May 18 (Saturday) → picking

• May 19 (Sunday) → holiday

• Loading happens on May 20 (Monday)

Now, click Save. On the address information screen that appears, fill in the required fields and click the green checkmark to exit.

Step 2: Assign Shipping Point to Plant

SPRO → SAP Reference IMG → Enterprise Structure → Assignment → Logistics Execution → Assign shipping point to plant

In this step, you link the previously defined shipping point to a specific plant. This assignment enables the SAP system to recognize which shipping points are available for use with each plant during the delivery process.

To add a shipping point to the MOYA plant:

• Select the MOYA plant from the list.

• Click Assign.

• Choose the shipping point you previously created.

• Then click Save and exit.

This completes the assignment of the shipping point to the MOYA plant.

Step 3: Define Shipping Conditions

SPRO → SAP Reference IMG → Logistics Execution → Shipping → Basic Shipping Functions → Shipping Point and Goods Receiving Point Determination → Define Shipping Conditions

In this step, you create or modify Shipping Conditions, which represent the delivery expectations of the customer—such as standard delivery, express delivery, etc. These conditions are usually assigned in the customer master record and are a key input in the automatic shipping point determination process.

By selecting New Entries, you can define the shipping condition.

Step 4: Define Shipping Conditions by Sales Document Type

SPRO → SAP Reference IMG → Logistics Execution → Shipping → Basic Shipping Functions → Shipping Point and Goods Receiving Point Determination → Define Shipping Conditions by Sales Document Type

In this step, you assign the previously defined Shipping Conditions to specific Sales Document Types. This ensures that when a sales document (such as a sales order) is created, the correct shipping condition is automatically applied, facilitating the proper determination of the shipping point.

Let's assign the shipping condition we created to our Sales Document Type. After defining it, click Save and exit.

Step 5: Define Loading Groups

SPRO → SAP Reference IMG → Logistics Execution → Shipping → Basic Shipping Functions → Shipping Point and Goods Receiving Point Determination → Define Loading Groups

In this step, you define Loading Groups, which specify the type of loading required for materials (e.g., manual loading, forklift loading, etc.). These loading groups are associated with the material master data and are crucial in the determination of the shipping point.

Step 6: Set Up Storage-Location-Dependent Shipping Point Determination

SPRO → SAP Reference IMG → Logistics Execution → Shipping → Basic Shipping Functions → Shipping Point and Goods Receiving Point Determination → Set Up Storage-Location-Dependent Shipping Point Determination → Assign Shipping Points

In this step, you define how shipping points are determined based on the storage location. This allows the system to assign the correct shipping point based on where the material is stored within the plant. After setting this up, the system will automatically select the appropriate shipping point depending on the storage location of the goods in the warehouse or plant.

By clicking New Entries, you will link the shipping condition, loading group, plant, and shipping point together. This ensures that all these elements are properly assigned and integrated for automatic shipping point determination during the sales order process. After making the necessary entries, click Save to confirm and exit.

Step 7: Assign Loading Group to Material

The loading group is assigned to the material under the Sales: General/Plant tab.

To do this:

• Use T-Code: MM01 (to create a material) or MM02 (to change an existing material).

• In the material master, navigate to the Sales: General/Plant tab.

• Enter the appropriate Loading Group for the material.

This assignment ensures that the system can use the loading group when determining the shipping point for that material.

Step 8: Shipping Condition in Sales Order Type

T-Code: VOV8

Since we have set up shipping point determination, you will automatically see the shipping condition applied to your sales order type. In this step, you can verify that the shipping condition is correctly assigned to the sales document type. This ensures that, when a sales order is created, the correct shipping condition is automatically determined based on the configuration you've made.

Step 9: Assign Shipping Condition to Customer

T-Code: BP

1. Go to the BP (Business Partner) transaction.

2. Select the FLCU01 Customer role for the customer.

3. Navigate to the Sales and Distribution section.

4. Under the Shipping tab, enter the appropriate Shipping Condition for the customer.

This step ensures that the customer master data has the correct shipping condition, which will be used when processing sales orders.

Step 10: Create Sales Order

T-Code: VA01

1. In the VA01 transaction, create a new sales order.

2. When you reach the item data, go to the Schedule Line tab.

3. In the Confirmed Quantity field for the delivery date of May 12th, you will see the confirmed product quantity as 1.

This confirms that the system has properly determined the delivery date and quantity for the item based on your configuration and settings.

• Delivery Date (12.05.2025): This is the date when the order is planned to be delivered to the customer.

• Material Available Date (Mat.Av.Dt.) (08.05.2025): This is the date when the system knows the material is physically available and ready to be shipped.

• Loading Date (09.05.2025): This is the date when the product will be loaded onto the truck at the shipping point.

The reason these dates are set as such is due to the 1-day loading and packing time you defined when configuring the shipping point. May 9th is a Thursday, and loading occurs the next day (Friday). Because of the weekend in between, the delivery date is moved to May 12th (Monday).

CONCLUSION

Shipping point configuration is essential for the smooth operation of the process from order to delivery. Thanks to this setup, the system can correctly determine which product will be shipped, from where, and how. Properly defined shipping points ensure that delivery schedules are consistent and streamline daily operations. This step provides clarity to the system's functionality and helps prevent unnecessary disruptions.