What is Shipping Point Determination in SAP?

Shipping Point Determination is a process in SAP where a shipping point (the physical location from where goods are shipped) is automatically assigned to a sales order. The determination involves three key components:

    • Shipping Conditions: Defined in the customer master, indicating how the customer prefers the goods to be shipped.
    • Loading Group: Found in the material master, representing the nature of the goods in terms of loading requirements.
    • Plant: The physical location where the goods are manufactured or stored.

In SAP, Shipping Point Determination is a critical process, facilitated by the T-Code OVL2. This process is essential for automatically identifying the appropriate shipping point in a sales document.

Shipping Point =Shipping Conditions + Loading Group + Plant

How to find / Modify Shipping Condition in SAP ?

To modify the Shipping Conditions, a key component in this process, the T-Code XD02 is utilised. This transaction code allows for the updating of the Customer Master data. Shipping Condition is within the Customer Master, under the Sales Area Data, there’s a dedicated tab for Shipping where these conditions are defined.

How to find / Modify Shipping Condition in SAP ?

How to find Loading Group in SAP?

Similarly, to find / modify the loading group in SAP, use the T-Code MM02 . This plays a vital role in adjusting the Loading Group in the Material Master. This adjustment is made in the Sales General/Plant Data section. The Loading Group is an integral part of the shipping point determination equation, as it represents the characteristics of the goods concerning their loading requirements.

How to find Loading Group in SAP?

In certain scenarios, the Plant data is manually inputted in the sales document. The Plant is a key factor in the Shipping Point Determination equation, representing the physical location from which the goods are dispatched.

For instance, if we combine Plant ZHYD with Shipping Condition 01 and Loading Group 0001, the Shipping Point would be ZHYD.

How Shipping point Determination is Done in SAP?

Understanding and effectively utilizing these T-Codes for Shipping Point Determination is vital for SAP users. It ensures precise and efficient determination of shipping points, which is crucial for the streamlined management of shipping and logistics in a business.