Organization structure in SAP TM ( Transportation Management)

Updated: Dec 8, 2020

TM (Transportation Management) is the system designed for transporting the goods from one place to another and so SAP TM has new and modified business model and also easy to maintain.

Organizational units in TM-

Organizational units in SAP TM maintained independently of SAP ERP and organizational structure can be different that SAP ERP.


Organizational units are used to represent the structure of the company with respect to transportation.




A company structured based on different point of views- Requirement/Sales , Planning, Execution and Settlement and on the basis of these functions organizational units maintained.

All the relevant business processes in SAP TM mapped in organizational units.

Organizational units used to allocate cost and revenue to different groups within company like profit and cost centers.

Settlements are processed in Organizational units - Intracompany or Intercompany

Organizational units also determined the responsibilities and responsible persons like for example perform approval and data authorization.

SAP TM organizational units used to represent the structure of the company with respect to transportation processes and also structure in SAP TM is flexible.




Organization units perform the following different organization functions -

  1. Requirement/Sales

  2. Purchasing

  3. Execution  

  4. Settlement




Organizational units in SAP TM divided on the basis of these functions.

Company code- The company code in TM is used transportation charge management for invoicing and charging and it is different than SAP ERP company code

Sales organization-Sales organization perform activities from sales side like organizing the Shipment transportation and hence it indicates in forwarding documents and It is used for creation of forwarding order types , forwarding quotation types and order based and delivery based transportation requirements.

Purchasing organizations- They are used for planning and execution and decided on  freight booking types, freight order types , freight unit types

Planning and execution organization- Planning and execution organizational structures are responsible for planning and executing freight orders and and it is used in TM standalone only and plays important role in transportation planning.




Forwarding House- Forwarding house is organizational unit that combines the function of sales organization, purchasing organization and planning and execution and plays important role as LSP (logistic service providers) scenario.


Configuration of organizational structure -


Create -PPOCE

Change- PPOME

Display -PPOSE


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