How to set-up Rail Rule 11 in SAP S/4HANA Cloud?

Rule 11” is a special process in North American rail industries which leads to multiple invoices for the same rail freight order, even though one carrier is receiving the actual order other Rail carriers involved in the transport for one or multiple stages can send invoices for stages they executed or even for stages they did not execute themselves.

Since S/4HANA CE2111, the Rail Rule 11 feature is available for the rail industries. In this blog post, I would be explaining on how to set-up Rail Rule 11 in SAP S/4HANA Cloud.

Steps:

Master Data and Customizations:

  • Create Charge type with a leading charge type. Go To: SPRO -> Transportation Management -> Basic Functions -> Charge Calculation -> Basic Settings -> Define Charge Types and select the leading charge type flag for the base rate charge type.
  • Create Rate Table, please refer to the blog post “How to create Rate Table in SAP S/4HANA Cloud?“.
  • Maintain the rate table in an Agreement, please refer to the blog post on “How to create an Agreement in SAP S/4HANA Cloud?“. Maintain different agreements for each carriers

Scenario Set-up:

First Create a Rail freight order for that please refer to my previous blog post “How to Create Rail Freight Order in SAP S/4HANA CE?“. As Rule 11 feature gets enabled when you have multiple stages with different executing carriers, you need to set-up the multiple stages.

Login as dispatcher and go to “Manage Freight Orders” app. Search for the Rail Freight order and go to details. In the Rail Freight Order, go to stages tab and click on intermediate stop to insert an intermediate stop. Enter the location details.

Select the appropriate “Stage Invoicing Carrier Level“. This determines the carrier to selected for executing each stage. If the “Stage Invoicing Carrier Level” is “Stage” then you have to manually enter the executing carrier and the same is updated in the Invoicing Carrier field.

If  “Stage Invoicing Carrier Level” is “Header“, the carrier maintained at the header is determined. “Stage Invoicing Carrier Level” is “No settlement” then it signifies no need to settle for the particular stage. In my example, the first stage is executed by the header carrier, 2nd stage is executed by stage level carrier.

Please note, In the S/4HANA Cloud, we do not have automatic stage carriers determination based on the default route, therefore you need to manually enter the executing carrier.

Once the carrier is assigned and the Rail Freight Order is saved, the Agreement at the 2nd stage should be visible as “Stage Invoicing Carrier Level” is Stage.

The charges calculated is visible in the “Charges” tab. There should be two Charge Items created for each stage where Agreement is determined for the respective Carriers maintained in the stages. The Posting Status will be “Not Ready for Posting“.

Perform the Delivery creation, Goods issue and Check-In and Check-Out of the Vehicle. The Posting Status will get set to “Ready for Posting“.

Login as “Transportation_mgr” and select the app “Monitor Accrual Posting“. Search for the relevant Rail Freight Order.

Under the “For Confirmation” tab, should be able to see Rail Freight Order with amount settled for each carriers.

Get into the details of the Rail Freight Order, you will be able to view two line items which is created for each executing carriers. The Posting Status is set to “Ready for Confirmation

Go to the Cost Distribution tab and check the distributed cost at the delivery item level.

Click “Confirm for Posting”, a pop-up window with respective executing carriers of the stage is displayed. You can either select one of the line items to get posted or you can select both and post them together.

Once the posting is successful, you should be able to view it in the tab “Posted“.

Check the details of the Rail Freight Order a Service Entry Sheet should be created.

Check the Posting Status in the Summary tab, Charges tab, should be set “Posted“.

Summary:

Now, you should be able to set-up basic Rule 11 scenario in S/4HANA Cloud.