Freight Agreement is a contract between a Purchaser and transport service provider for example: Carrier. The agreed rates are maintained in the Freight Agreement which is later used during charge calculation to determine the rates based on the service provided by the carrier.

In this blog post, I will describe how to set up a basic freight agreement in the SAP S/4HANA Cloud.

First login as “transportation_mgr” and go the app “Manage Freight Agreements”.

The “Manage Freight Agreements” worklist is displayed.

Click Create button, a new page opens where enter the agreement type and click continue and the Freight Agreement Page will be displayed.

In the General Data tab, maintain following details:

• Enter Description in the Basic Data
• In the Involved Parties, maintain the Purchasing Organization, Carrier.
• In the Details section, enter Valid-From Date, Valid To Date, Document Currency.
• In the General Terms, enter Main Transportation Mode, Shipping Type.

In the Items tab, insert new item.

Once the new item is inserted, click “Add Calculation Sheet”. A calculation sheet gets added and now click “Display Calculation Sheet” to maintain the rate lines.

In the Calculation Sheet page, insert new line. In the newly created line maintain the charge type maintain either flat rate and currency or maintain Rate Table. Please refer to blog post on “How to create Rate Table in SAP S/4HANA Cloud?“.

Click Back and you will be back in the Agreement General Data tab. Click Release to release the agreement.

The Agreement Status should be Released. Save the document

Note: If the Agreement is not in Released Status, the Freight Agreement will not be determined for Charge Calculation in the Freight Order to calculate Transportation Costs.

Summary:

You should be able to create Freight Agreement in SAP S/4HANA Cloud.