101
FOUNDATIONUnderstand the transportation lifecycle

TM 101 · PROCESS OVERVIEW

How does Transportation Management work?

Basic TM turns transportation-relevant demand into a feasible transport plan, physical execution evidence, expected freight cost, and settlement. The mental model is simple: Demand -> Plan -> Execute -> Cost -> Settle.

Transportation Management flow

From delivery-based demand to settled carrier cost

  1. 01

    Business demand What must move?

    Delivery-based transportation demand enters TM with source references, locations, quantities, and dates.

    Creates Transportation demand / DTR

  2. 02

    Freight unit What can be planned?

    FUBR turns transportation demand into Freight Units that can be split, grouped, planned, and traced back to the source.

    Creates Plannable freight demand

  3. 03

    Freight order / booking How can it move?

    Planning assigns compatible Freight Units to a feasible Freight Order with route, schedule, resources, equipment, capacity, stops, and carrier assignment. Where a release or mode uses booking terminology, keep it as document vocabulary rather than a tendering lesson.

    Creates Freight Order plan

  4. 04

    Execution events Did movement happen?

    Warehouse, delivery, loading, departure, arrival, PGI, GR, and event evidence prove whether the physical movement followed the plan.

    Creates Physical and event evidence

  5. 05

    Settlement How does cost reach finance?

    Freight agreements, rates, charge calculation, FSD, and purchasing follow-on evidence support supplier invoice verification and FI integration.

    Creates Settlement and accounting evidence

TRANSPORTATION EVIDENCE

Trace demand into freight settlement

This lens answers a different question from the lifecycle above: what evidence proves the result at each ownership boundary?

DEMANDWhich delivery-based requirement, locations, dates, and quantities created the transport need?
PLANWhich freight unit, freight order, route, capacity, and carrier assignment made the movement feasible?
EXECUTIONWhich loading, departure, arrival, delivery, warehouse, and event evidence proves what happened?
SETTLEMENTDo charges, service entry, invoice verification, accounting, and exceptions agree?
CONTINUE TO TM 202Explore the Basic TM capabilities

Open the object model, demand, master data, planning, execution, and settlement questions.

Open TM capabilities
Official SAP referencesSAP Help - Creation and Editing of Freight Units SAP Help - Freight Settlement Document