Lesson 2 of 6
TM deployment and licensing options
10 min
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Two choices shape a TM project: where TM runs (embedded in the same S/4HANA system as sales and logistics, or side-by-side on a separate S/4HANA instance) and which scope is used (basic or advanced). They are independent: embedded TM can run basic or advanced scope.
Embedded or side-by-side
| Aspect | Embedded TM | Side-by-side TM |
|---|---|---|
| Where it runs | Inside the S/4HANA system that holds orders and deliveries | In a separate S/4HANA instance dedicated to TM |
| Integration | Direct, no middleware; documents link in the document flow | Messages between systems (SOAP services), as with a central TM hub |
| Fits when | One ERP, transport planned per company, simpler landscape | Several ERP systems feed one TM, or TM must be isolated from ERP releases |
| Contoso choice | Yes: one S/4HANA system (CMP), three shipping points | Not needed |
Deployment options for TM in S/4HANA.
Basic and advanced scope
SAP describes two functional scopes. The basic scope (earlier called Basic Shipping) contains the functions that correspond to LE-TRA and is covered by the S/4HANA license: freight units, freight orders, manual planning in the transportation cockpit, carrier selection and tendering, charge calculation, freight settlement and cost distribution, and dangerous goods checks. The advanced scope (earlier called Advanced Shipping) needs an additional license and adds engine-based and logistics-service-provider functions, for example optimizer-based planning, load planning, strategic freight procurement and forwarding orders for freight forwarders. The exact split moves between releases; SAP's feature scope description for S/4HANA 2025 and your contract are the references.
- Does Contoso plan transport only for its own sales and replenishment?Yes → shipper scenario · No (sells transport) → advanced, forwarding orders
- Does the plan need an optimizer for vehicle routing or loads?Yes → advanced scope · No → basic scope with manual or rule-based planning
- Does more than one ERP system feed transport planning?Yes → consider side-by-side · No → embedded
Contoso's decision
Derek's team plans about 1,100 outbound and replenishment truckloads a month with two contracted carriers on fixed lanes (illustrative course data). They do not run a fleet, do not sell transport, and do not need route optimization. Embedded TM with basic scope covers the LE-TRA functions they use and adds tendering by EDI, which Midwest Freightways asked for. Advanced scope stays an option for a later phase, if the Mexican acquisition adds cross-border lanes that need optimization.
What embedded means for the landscape
Embedded TM is configured and transported like any other S/4HANA application: Customizing and master data templates are built in CMD, tested in CMQ client 100 and imported into CMP in Luis's release windows. There is no extra TM system to install, patch or refresh, which is a real saving in a landscape that already has CMD, CMQ, CMP and the optional CMR. The carrier side is different: carrier EDI runs through SAP Integration Suite (CMC_DEV, CMC_TEST, CMC_PROD), so every carrier needs a test partner and an agreement before integration testing can start.
In SAP S/4HANA Cloud Public Edition, transportation management is also available in the cloud ERP, with scope items for freight planning and settlement; check the scope item list and the feature scope for your Public Edition release if a subsidiary runs there.
Questions to settle before build
| Question | Why it matters for testing | Contoso answer |
|---|---|---|
| Which documents are TM-relevant? | Defines which flows need freight units and end-to-end cases | Customer deliveries from 1710 and 1720; stock transport orders to 1810 |
| Order-based or delivery-based per flow? | Changes when planning and tests can start | Delivery-based outbound, order-based replenishment |
| Who settles freight and how? | Defines accrual and invoice test cases | FSD daily; MIRO for Keystone, ERS for Midwest |
| Which carriers by which channel? | Defines B2B test partners | Midwest by EDI, Keystone by email tender |
| Which advanced features, if any? | License and scope of test | None in phase one |
Design questions that shape both the build and the test plan.
What would you do?
A consultant proposes switching on optimizer-based planning "because it is in the system anyway". Contoso licensed the basic scope. What should Derek do?
- Embedded TM runs inside the ERP system; side-by-side suits several ERP systems or isolation needs.
- Basic scope covers LE-TRA-like functions and is in the S/4HANA license; advanced needs an extra license.
- Check the feature scope description for your release; the split moves.
- Contoso: embedded, basic, shipper scenario.
Check your understanding · not graded
Lesson check
1. When is side-by-side TM typically chosen?
2. Which scope corresponds to LE-TRA functions and is covered by the S/4HANA license?
3. Which function is an example of advanced scope?
4. Why did Contoso choose embedded TM?