Internal Settlement Management

You can send an internal settlement document from an internal organization in your company to another internal organization to recover costs incurred in delivering transportation services for a forwarding order.

If the organizations involved belong to the same company code, the settlement is an intracompany settlement. If the organizations belong to different company codes, the settlement is an intercompany settlement.

Prerequisites

You have specified an internal settlement rule in Customizing for Transportation Management under Forwarding Order Management Define Stage Type Sequence for Movement Types . A stage in a forwarding order must reach the execution status you specify here before you can create and edit internal settlements.
For internal settlements (both intracompany and intercompany settlements), you must have an internal agreement in place between the purchasing organization (forwarding house) of the freight order or freight booking that is executing the stage, and the sales organization in the forwarding order.
You have specified the all the relevant internal settlement prerequisites (see Internal Settlement).

Activities

Determining the Appropriate Agreement

You perform planning on a forwarding order to finalize its execution. The forwarding order contains a breakdown of the stages you require to fulfill the order. Based on this breakdown, the system calculates the charges for the order. When it calculates charges it determines the appropriate internal agreement to use to perform the calculation.

Manually Creating an Internal Settlement Document

You can manually create an internal settlement document in the Forwarding Orders for Internal Settlement screen by selecting the following business documents:

Appropriate freight order or freight booking
Appropriate forwarding order in the details area of the screen. The freight order or freight booking executes this forwarding order

The system checks the following information in the forwarding order:

Purchasing organization of the freight order or freight booking executing the stage
Sales organization of the overall forwarding order

Depending on the internal organizations that are involved, the system creates internal settlements that are either intercompany or intracompany settlements.

Creating Multiple Internal Settlement Documents

You can also create multiple internal settlement documents using the Mass Creation of Forwarding Settlement Documents report, and selecting a category of Internal Settlement Document. To access the report, in SAP NetWeaver Business Client, choose Start of the navigation path Application Administration Next navigation step Background Reports Create Forwarding Settlement Documents End of the navigation path .

Working with Forwarding Orders for Internal Settlement

You can display all the freight orders or freight bookings that contain forwarding orders that must be settled internally in the Forwarding Orders for Internal Settlement screen. The purchasing organization of the freight order or freight booking has settled with the carrier. The sales organization in the forwarding order has sold the transportation service to a customer. Now the purchasing organization needs to recover the costs of providing the transportation service from the sales organization.

The system displays the freight orders and freight bookings from the viewpoint of the purchasing organization. When you choose an individual line item that contains a freight order or freight booking in the worklist, the system displays the associated forwarding orders under the worklist.

Specifying a Forwarding House

You must specify the purchasing organization of the freight order or freight booking that is executing the stage as a forwarding house. The forwarding house acts as the organization in the internal agreement. The business partner of the sales organization in the forwarding order acts as the business partner in the agreement, and is treated as a customer of the forwarding house.

Example

A sales organization receives a forwarding order from a customer. The sales organization delegates the execution of the main carriage to an internal organization. This internal execution organization uses an internal settlement document to bill the sales organization that received the forwarding order, to recover the costs of executing the main carriage.

In Customizing, you have specified an internal settlement rule of In Execution in the Define Stage Type Sequence for Movement Types Customizing activity. When the execution status of the freight booking that executes the main carriage goes to In Execution, the main carriage of the forwarding order is ready for internal settlement. You can create the internal settlement document in the following ways:

Manually from the Forwarding Orders for Internal Settlement screen
Automatically, using the batch program

If the internal organization that executed the main carriage belongs to the same company code as the sales organization that received the forwarding order, the system creates an intracompany settlement. If the organizations belong to different company codes, the system creates intercompany settlements.

More Information

Subject	See
Using internal settlement documents to settle the costs of providing internal resources	Internal Settlement for Resources
Role and structure of an agreement	Agreement
Using forwarding settlements	Forwarding Settlement
Using cost distribution for logistics service providers (LSPs)	Cost Distribution for LSPs