Case study 4B Transportation management - PART 2

Exercise #5 Process outbound shipments

Objective: Manage an outbound shipment and a consolidated shipment

The logistics manager at USMF, would like to process an outbound shipment for Desert Wholesales.

This involves receiving and confirming the sales order, reserving stock for the order, and creating an outbound transportation load.

In addition, Desert Wholesales wants to add another line to their sales order.

They requested that both sales order lines arrive in one consolidated load.

You have been asked to help creating the consolidated load and confirming it.

You need do the following:

• Initiate an outbound shipment.

• Create a consolidated shipment. >[!NOTE] There's an exclusion on sales orders lesser than $10,000 for all customers. The sales order may provide an informational message that the order amount may be less than or equal to the sales order exclusion amount in the sales order rule and will not be sent to credit management. Before the execution of this task, view blocking rules and exclusion rules on the Credit and collections > Setup > Credit management setup > Blocking rules page.

Initiating an Outbound Shipment

You have been asked to confirm a sales order for Desert Wholesales, reserve stock for the order, and create an outbound transportation load.

Receive and confirm the sales order

1. Open Sales and marketing > Customers > All customers.  

2. In the list of customers, select the line for account US-007.

3. In the action pane, select the Sell tab.

4. In the New group, select Sales order.

5. In the Sales order form, expand the Sales order lines FastTab, if not expanded already.

6. In the existing sales order line, in the Item number field, enter A0001.

7. In the Quantity field, enter 5.

8. In the Site field, enter 6.

9. In the Warehouse field, enter 62.

10. In the Unit price field, enter 15.  

11. In the action pane, select Save.

12. In the action pane, select the Sell tab.

13. In the Generate area, select Confirm sales order.

14. Confirm the information on the Confirm sales order form and select OK.

15. Select OK to post without printing.

Reserve stock for the order

1. In the Sales order details form, select the order line in the Sales order lines FastTab.

2. Select the Inventory drop-down arrow and select Reservation.

3. In the Reservation form, in the Reservation field, enter 5.

4. In the action pane, select Reserve lot.

5. Close the form.

Create an outbound transportation load

1. In the Sales order details form, select the Warehouse tab in the action pane.

2. In the Loads area, select Load planning workbench.

3. In the Sales lines tab, select the line for your current sales order.

4. In the action pane, select Supply and demand.

5. In the Add area, select To new load.

6. In the Load template assignment form, select Stnd Load Template from the Load template ID drop-down menu.

7. Select OK.

8. Select OK to confirm exceeding capacity.

Creating a Consolidated Shipment

Desert Wholesales wants to add another line to their sales order. They request that both sales order lines arrive in one consolidated load. You have been tasked with creating the consolidated load and confirming it.

Set up parameters for consolidated shipments

1. Open Transportation management > Setup > Transportation management parameters.

2. Select the General tab.

3. In the In transit planning FastTab, set the In transit planning slider to Yes.

4. Close the form.

Add a new line to a sales order

1. Open Accounts receivable > Orders > All sales orders.

2. Select the current sales order for Desert Wholesales.

3. In the Sales order details form, in the Sales order lines FastTab, select Add line.

4. In the Item number field, enter A0002.

5. In the Quantity field, enter 5.

6. For Site, select 5.

7. In the action pane, select the Sell tab.

8. In the Generate area, select Confirm sales order.

9. Confirm the information on the Confirm sales order form and select OK.

10. Select OK to post without printing.

Reserve stock for the order

1. In the Sales order details form, select one of the order lines in the Sales order lines FastTab.

2. Select the Inventory drop-down arrow and select Reservation.

3. In the Reservation form, in the Reservation field, enter 5.

4. In the action pane, select Reserve lot.

5. Close the form.

Create and confirm a new outbound load

1. In the Sales order details form, select the Warehouse tab in the action pane.

2. In the Loads area, select Load planning workbench.

3. In the Sales lines tab, select a line for your current sales order.

4. In the action pane, select Supply and demand.

5. In the Add area, select To new load.

6. In the Load template assignment form, select Stnd Load Template from the Load template ID drop-down menu.

7. Select OK.

8. Select OK to confirm exceeding capacity.

Add hub consolidation and rate both loads

1. In the Load planning workbench, select the first load you created in the Loads tab.

2. Select Hub consolidation in the Transportation drop-down menu.

3. In the Override location form, select the Hub drop-down arrow and select Los Angeles.

4. Select OK.

5. Select the load line in the Loads tab.

6. Select Rate route workbench from the Rating and routing drop-down menu.

7. In the Rate route workbench, select Route with rate in the action pane.

8. In the Route Results FastTab, select route guide Wh 61 to Cust 003 004 019.

9. Select Assign.

10. Close the Routes form and the Rate route workbench.

11. Repeat steps 1–10 for the second load.

Create the consolidated load

1. In the Transportation request lines tab, select both lines.

2. In the action pane, select the Supply and demand tab.

3. In the Add area, select To new load.

4. In the Load template assignment form, select Stnd Load Template from the Load template ID drop-down menu.

5. Select OK.

6. Select OK to confirm exceeding capacity.

   The consolidated load may take several minutes to appear in the Loads tab.

Rate the consolidated load

1. In the Loads tab, select the consolidated load line.

2. Select Rate route workbench from the Rating and routing drop-down menu.

3. In the Rate route workbench, select Route with rate in the action pane.

4. In the Route Results FastTab, select route guide Wh 61 to Cust 003 004 019.

5. Select Assign.

6. Close the Routes form and the Rate route workbench.

Confirm the consolidated load shipment

1. On the Load planning workbench, in the Loads tab, select the consolidated load line.

2. Select Outbound load in the Ship and receive drop-down menu.

Exercise #6 Configure freight reconciliation (Bonus)

Objective: Configure and manage freight reconciliation.

You were asked to help the logistics manager at USMF, to setup the system for Desert Wholesales for freight reconciliation.

You will need to do the following:

• Create the freight reconciliation reason code for overtime.

• Verify that the fright bill type is configured.

• Create a freight bill type assignment for the truck carrier service.

• Create a billing group named Duties.

• Create an audit master for overtime.

Create a freight reconciliation reason code for Overtime

1. Open Transportation management > Setup > Freight reconciliation > Reconciliation reasons.

2. Select New.

3. Type OT in the Reconciliation reason code field.

4. Type Overtime in the Description field.

5. Type 211650 in the Debit account field.

6. Select the Pay the freight vendor check box.

7. Close the form.

Verify the Freight bill type is configured

1. Open Transportation management > Setup > Freight reconciliation > Freight bill type.

2. Select the TL Freight bill type.

3. Verify the Engine assembly field is populated.

4. Verify that two records exist, one for Billing group ID and one for External code.

5. Close the form.

Create a freight bill type assignment for the Truck Carrier service

1. Open Transportation management > Setup > Freight reconciliation > Freight bill type assignments.

2. Select New.

3. Select None in the Direction field.

4. Select Ground in the Mode field.

5. Select TruckCarrier in the Shipping carrier field.

6. Select TL in the Freight bill type field.

7. Close the form.

Create a billing group named Duties

1. Open Transportation management > Setup > Freight reconciliation > Billing Group.

2. Select New.

3. Type Duties in the Billing group field.

4. Type Duties in the Name field.

5. Close the form.

Create an audit master for overtime

1. Open Transportation management > Setup > Freight reconciliation > Audit master.

2. Select New.

3. Enter Overtime in the Audit master ID field.

4. Select TruckCarrier in the Shipping carrier field.

5. Select TL in the Freight bill type field.

6. In the Result FastTab, select OT in the Overpayment reason code field.

7. Select Damage claim in the Underpayment reason code field.

8. Close the form.

Congratulations!

You have successfully completed this Lab. Click Next to advance to the next Lab.