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Billing Process in SAP Yard Logistics

Services 07/11/2023

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What is Yard Billing?

The value of a business is not only in its workflow or operations but also in its ERP system's ability to record and generate revenue with accurate billing. Billing and recording transactions ensure accurate financial reporting. It allows for properly tracking revenue and expenses associated with supply chain operations. Recording transactions also help track the movement of goods within the warehouse or yard. It enables accurate inventory management by updating stock levels, tracking product locations, and monitoring the flow of goods. This information is vital for maintaining optimal inventory levels, preventing stockouts, and reducing carrying costs. Proper billing and transaction recording facilitate efficient order processing and fulfillment. By accurately capturing sales and shipment details, it becomes easier to track orders, monitor delivery timelines, and ensure timely and accurate invoicing.

Billing Process in SAP Yard Logistics

SAP Yard Logistics collects the necessary data to generate invoices for all yard tasks to the appropriate parties. All billable activities occurring in the yard must be charged for. This is facilitated by integrating SAP YL with SAP Extended Warehouse Management and SAP Transportation Management.

Planning for the yard begins with SAP TM, where freight orders arriving and leaving are converted to yard orders containing information on related yard activities such as asset movement, cleaning, and weighing. Each activity type can be mapped to an appropriate warehouse process type in SAP EWM.

Mapping of SAP YL tasks to warehouse tasks in SAP EWM

The yard number is related to the warehouse number, meaning that each yard task for an asset in the yard has a corresponding warehouse task in SAP EWM, which is logged for the TU. When a task with all the activities is carried out in the yard, it generates corresponding warehouse tasks for each activity of the TU.

Every completed and confirmed yard task relevant for billing is billed—a report within SAP EWM called 'Warehouse Task Snapshot' gives a periodic billing overview. This report with measurement services will bill each task to its respective customer based on the agreed-upon rate. The rate is derived from the agreement maintained in the SAP TM Agreement Management System, which is then distributed to SAP EWM to initiate warehouse billing measurements. The billing data is transferred to SAP TM for charge calculation or can be directly invoiced in SAP ERP.

Charge calculation in SAP TM / Invoicing in SAP ERP

Freight agreements can be used to calculate the charge for the carrier, and all yard activities related to the shipper can be invoiced through warehousing billing. The forwarding agreement includes the price that has been negotiated with the customer.

Activity Based Billing

SAP YL makes Activity-based billing possible, whereby yard activities are classified and given unique billing rates. For instance, the cost of storing products could be assessed differently from the cost of loading or unloading. Organizations may accurately bill consumers and capture the full cost of yard operations by setting up activity-based billing rates.

Automated Billing Processes

The billing procedures are automated using SAP YL, lowering manual labor and decreasing mistakes. The system gathers pertinent data, such as activity time, equipment usage, and resource consumption, to produce invoices based on established billing criteria. By automating the process, tedious human calculations are no longer necessary and correct billing is guaranteed.

Benefits of SAP YL Yard Billing

  • Organizations may guarantee accurate billing based on actual yard operations by utilizing the yard billing features of SAP YL. It delivers accurate and clear bills, avoiding billing inconsistencies and raising customer satisfaction.
  • Organizations can achieve cost transparency using SAP YL to get insights into yard operations expenses. Businesses may find inefficient areas and take proactive steps to improve yard processes, tracking activities and resources, resulting in cost savings.
  • Organizations may efficiently manage their cash flow and revenue sources with SAP YL yard billing. The system produces bills on time, shortening billing cycles and facilitating rapid payment collection. This improved financial control increases the stability and profitability of the company as a whole.
  • Organizations can acquire better insights into yard operations using SAP YL’s powerful reporting and analytics capabilities. Businesses can enhance yard performance by analyzing billing data to find patterns, assess KPIs and make data-driven decisions.

With SAP YL yard billing, businesses have a strong tool to automate and streamline their yard management procedures. Organizations can improve cost transparency, strengthen financial management, and provide consumers with accurate bills by precisely recording and billing yard operations. By adhering to best practices and utilizing SAP YL billing capabilities, firms can streamline their yard operations, reduce manual labor and acquire insightful data through reporting and analytics. Adopting SAP YL yard billing is crucial to delivering improved customer satisfaction and obtaining operational excellence in logistics and supply chain.

ArchLynk's extensive expertise in yard logistics positions us as a trusted partner for businesses seeking to optimize their operations and maximize yard logistics capabilities. By harnessing the power of SAP Yard Logistics (YL), we enable organizations to unlock several business benefits. From streamlined yard management and enhanced visibility to improved efficiency and reduced costs, SAP YL offers a comprehensive solution to address the complex challenges of yard logistics. Speak to an expert to learn more.

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Related Content

Blog - Digitizing Yard with SAP YL

CLICK HERE

Discovery Workshop - Yard Logisitcs

REGISTER HERE

Blog - Streamlining Yard Operations and Enhancing Visibility

CLICK HERE

SAP Extended Warehouse Management

DOWNLOAD NOW

Warehouse Billing

LISTEN NOW

Speak to an Expert

CLICK HERE

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