From the course: SAP Transportation Management Overview

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Charge calculation components

Charge calculation components

- [Narrator] This next lesson is about TM and charge calculation, basically how TM captures or calculates freight cost associated with a freight transaction. I should emphasize that this is just scratching the surface. TM SAP has huge amounts of functionality in charge management that we can't begin to cover in an overview course such as this. But, hopefully, this will just give you the basics. So, here are the key objects, if you will. This is all about freight cost, how to calculate freight cost. And, core objects in TM basically are agreements that-- think of that as your contract with the carrier. So this is TM's-- SAP TM's representation of your carrier contract. And in that freight agreement is something that's a little bit tougher to grasp, something called a transportation charge calculation sheet. Think of that as your structure of calculation, or maybe what a freight invoice looks like. It includes line haul and fuel, maybe a summary and a total. And maybe where some of…

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