Charge Calculation

Charge calculation in SAP TM connects the operational freight order with the commercial conditions agreed with a carrier or logistics provider. It applies charge types, rates, scales and calculation logic to the actual transportation movement so the business can understand what the service should cost.

From movement to price

A transportation charge can depend on distance, weight, volume, number of stops, route, equipment type, fuel surcharges, accessorial services or minimum charges. SAP TM must combine those commercial rules with the data on the freight order.

Selected system guidance

Calculation sheets define which charge types apply and how they are evaluated. Rate tables and scales provide the commercial values. Agreements and validity periods determine which pricing conditions are available for a specific carrier, route and date. The technical setup must reflect the actual contract rather than an abstract example.

Why charge errors appear late

• An agreement is missing, expired or assigned incorrectly
• Validity periods overlap or leave gaps
• The wrong scale base or unit of measure is used
• Charge-relevant freight-order data is incomplete
• The calculation sheet does not reflect the carrier contract
• Testing uses isolated rates rather than realistic transportation scenarios

Charge calculation and settlement are different

Charge calculation determines what the transportation service should cost. Freight settlement turns the approved amount into settlement documents and connects it with purchasing and finance. Many apparent settlement errors therefore originate earlier in charge master data or calculation logic.

Continue the process chain

Sources and further reading

• SAP TM Freight Settlement Explained — Deborah Born, Espresso Tutorials
• Freight Settlement in SAP TM
• Deborah Born — Master Content Index

Written by Deborah Born, Principal SAP S/4HANA Transportation Management consultant and author of SAP TM Freight Settlement Explained.