Page 1 Freight Self Billing System & TRP-RTS 1 Freight Self Billing System & TRP-RTS Central freight accounting March 2014 Table of contents FOREWORD 2 The Business Processes 3 Principles

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Freight Self Billing System & TRP-RTS

Central freight accounting March 2014

Table of contents FOREWORD .................................................................................... 2

The Business Processes ............................................................... 3

Principles ..................................................................... 3

Handling at Service Provider .......................................................... 5

Special Cases .............................................................. 8

Handling at BMW ......................................................... 10

Shipment cost settlement .............................................................. 11

Auditing the transport data EDI ..................................... 11

Cost settlements on the SAP FMP ............................... 11

Communication ............................................................................... 12

Supplier – Service provider .......................................... 12

Service provider – BMW ............................................... 13

BMW Service Providers ................................................ 17

Time limits in the freight self-billing system ................................ 18

Definitions ........................................................................................ 20

Bordero ........................................................................ 20

Bordero position ........................................................... 20

Packages for the Bordero Position .............................. 21

Texts for the Bordero Position ..................................... 21

Delivery Note ............................................................... 22

Main transport run ........................................................ 22

Collection/distribution ................................................... 22

Abbreviations .................................................................................... 24

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FOREWORD

In the automobile industry, the integration of processes within and between the companies involved is advancing all the time. In the process chains between the automobile manufacturers, their suppliers and service providers, the rapid reliable and low-cost exchange of the ever-increasing flow of information and its uniform further handling is becoming more and more important. The area service providers of BMW AG are obliged by contract to always participate in the freight self billing system. Payment of the shipments in the freight credit memo process is determined separately after checking the conditions. The aim of this booklet is to give our service providers the information required for successfully adapting their processes and systems for Bordero handling including the use of the BMW software Transport – Record and Transmission System (TRP-RTS). The freight self-billing system is designed to improve the quality and efficiency of processes for both the service providers and BMW, with the following major advantages for both parties: • Shipment cost settlement is only based on the transport data. • Closing of the communication chain – consistent use of key terms and data from the service providers via BMW and back to

the service providers. This opens up new possibilities for automated processing, especially for the service providers. • Reduction and optimization in the flow and handling of documents. • Availability of additional information for the handling and settlement of consignments. • Reduction in claims and corrections because the service provider is already provided with the basic data for its freight

charges via EDI.

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THE BUSINESS PROCESSES

PRINCIPLES

Consignments to the BMW Group Within the framework of the freight self billing system, the transports are changed to Bordero handling with reference to the document and data flow. Bordero handling means that the handling between the service provider and consignee BMW should be carried out with the Bordero sheet and the transport data is provided electronically by the service provider. The transport documents created by the supplier, such as the VDA 4922 forwarding order or the VDA 4939 consignment document, form the basis for the transport handling, creation of the Bordero sheets and EDI transport data. Based on this document, the handling of the arrival of goods including the shipment cost settlement and damage handling is carried out by using and receipting the Bordero sheet. Consignments from the BMW Group The EDI transport data is based on the transport document created by the consigner. Delivery and receipt can be recorded on the original document. All consignments for a journey are collected by the service provider on a Bordero. There are four fundamental variants • handling at base • in-transit handling • emergency handling of received goods • emergency handling of shipment

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These four variants can be distinguished by the type of documents, the mode of receipting and the time when the data was provided. The logic of the Bordero is the same for all handling procedures. The Bordero sheet and data describe the complete cargo carried by a vehicle on a particular transport run. The Bordero no. is therefore the term that links the cargo, even when this is destined for more than one consignee or consignee location (plants, etc.). The structure of the Bordero data mirrors the information needed for the shipment handling and shipment cost settlement. It is very much based on the VDA forwarding order 4922 . In addition to this, it enables the service provider to send its own key terms or remarks relating to shipment handling or communication and freight auditing. The communication chain is closed by returning these key terms and data in the shipment cost settlement account, thus opening up new possibilities of processing especially for the service provider.

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HANDLING AT SERVICE PROVIDER Base handling In this case, the individual shipments of the consignors pass through a base (terminal) of the service provider, where they are either transshipped or remain on the original vehicle.

Procedure

1. The consignor (usually the supplier) sends the dispatch advice (by telephone, fax, etc.) 2. The service provider plans the various shipments 3. Collection process • The consignor prepares the delivery notes and a forwarding order for each consignment. A consignor can hold several

shipments available for each shipment (see also definition of Bordero position). • The driver is given the accompanying documents (delivery note or EDI-WBS, VDA forwarding order) for the respective

shipment and receipts acceptance of the shipment for the consignor. 4. Handling at the forwarding agent’s base. • The individual consignments are assembled for shipment to the consignee or have already been loaded on the vehicle for

consolidated shipment. • The data of all the consignments destined for BMW on one vehicle are recorded on the basis of the VDA forwarding orders

and consolidated under one Bordero number. • A very important aspect here is "document-compliant recording" of the transport documents; i.e. the content of the transport

document must always be entered and any deviations from the actual transport document must always be documented in the form of additional text information (see also “Special cases”).

• Once the goods have been loaded, the Bordero sheet can be printed out and the Bordero data can be provided for BMW. Exception

If, after leaving the base, the vehicle also loads other consignments for BMW, the data must only be sent by EDI when it is complete (see also In-transit handling).

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In-transit handling In this case the individual shipments do not or not all shipments pass through any of the bases of the service providers. They are carried directly to the consignee on the vehicle by which they are collected. The Bordero data is sent by EDI after the shipments have been delivered on the basis of the receipted documents. Procedure 1. The consignor (usually the supplier) sends the dispatch advice (by telephone, fax, etc.) 2. The service provider plans the various shipments 3. Collection process • The consignor prepares the delivery notes and a forwarding order or consignment document for each consignment. A

consignor can hold several shipments available for each shipment (see also definition of Bordero position). • The driver is given the accompanying documents (delivery note or EDI-WBS, VDA forwarding order, consignment document)

for the respective shipment and receipts acceptance of the shipment for the consignor. 4. The driver prepares the Bordero sheet by hand, using forms carried with him on the basis of the transport documents. • It is very important that the papers for the complete cargo all have the same Bordero no. • The requirements for manual production of the Bordero sheet are described in the booklet “Guide on the support of the driver“ 5. BMW handles the receipt of the incoming goods on the basis of the manual Bordero sheet. The shipments are received in the

same order as on the in-transit Bordero. 6. The service provider receives the receipted papers, which are then recorded at the base. The resulting Bordero data is then

transmitted to BMW within the agreed time limit after receiving the goods. If, in exceptional cases, BMW gives a waybill number even though a Bordero sheet is available, then the waybill number must

be sent by EDI instead of the position no.

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Emergency Handling The procedure for emergency handling must be carried out if the forwarding agent does not have a Bordero sheet with him or if the Bordero sheet does not meet the requirements. The Bordero data is transmitted by EDI after the shipments have been delivered on the basis of the receipted papers.

Emergency handling of BMW Incoming Consignments In these cases, handling is done on the basis of the supplier’s transport documents. Consequently, the transport documents are paginated with the BMW waybill number and also bear the BMW-receipt. The receipted transport documents form the basis for the service provider to prepare the transport data EDI. However, instead of the Bordero position number the BMW waybill number must be transmitted as the key term for the consignment.

Emergency handling of BMW Consignments In these cases, handling is done on the basis of the transport documents of BMW. The transport documents are the basis for the service provider to prepare the transport data EDI. However, instead of the Bordero position number the BMW waybill number must be transmitted as the key term for the consignment.

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SPECIAL CASES

1. Handling of cargoes containing items for more than one consignee location (plants) or unloading point

These cargo items must be grouped both on the paper and in the EDI data under the same Bordero number. The Bordero sheet must be sorted in such a way, that the cargo items for one consignee location or unloading point are

shown consecutively. A new page must be started for each different consignee location or unloading point (see also the section "Bordero sheet").

2. Handling of cargoes that are not destined for BMW or are not relevant

Only the cargo items relevant for BMW must be shown in the Bordero sheet and data.

3. Split consignments, subsequent deliveries at BMW goods receiving dept.

Consignments and cargoes must be planned in such a way that no consignments are split; in other words, the principle applies "Delivery of one consignment on one vehicle only!"

The few exceptional cases are to be dealt with as follows:

First Bordero

• The complete shipment is described on the Bordero sheet and in the Bordero EDI (i.e. in conformity with the transport or consignment document).

• The text for the relevant Bordero position contains reference to goods that were not loaded (e.g. "Note: 3 pallets of type 3100419 could not be loaded").

Second Bordero (= later partial delivery)

• The Bordero position describes the goods actually delivered later, i.e. in the above example the 3 pallets of type 3100419. • Goods category "DG". • Delivery term code corresponding to the first delivery.

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• The text for the Bordero position contains the remark "Note: Later partial delivery under Bordero Snnnnnnnnnn Bordero position zzz" (Snnnnnnnnnn stands for the number of the first Bordero and zzz for its position)

4. Split shipments in the BMW shipment

If the goods for a BMW delivery note cannot be loaded on a truck, then the shipping point gives the original delivery note with the first delivery. The quantity and weight is reduced to the actual quantity loaded. The other partial deliveries are sent with copies of the delivery note. The transport data is recorded for the first shipment with the delivery note number and for the other shipments with a position number assigned by TRP-RTS. The number of the delivery note must be recorded as a reference in the text.

5. Dangerous goods shipments

In the case of dangerous goods shipments, the dangerous goods class (see Value tables) must be entered in the fields “Goods category”. The dangerous goods classification and information must be entered in accordance with the legal regulations in the field “Text for Bordero position”.

.

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HANDLING AT BMW

Handling of incoming goods with Bordero sheet The handling is done on the basis of the Bordero sheets and the delivery notes or EDI-accompanying documents. Each receiving office groups all the items of a cargo by recording the service provider and the Bordero no. Cargoes for more than one consignee location (e.g. Plant 18 and 24) are grouped in this way. The individual shipments are allocated via the Bordero position no. The forwarding orders for the individual consignments are no longer provided with a waybill number, and they are only referred to for clarification in the event of problem cases. The Bordero sheet is also the basis for the physical incoming goods control receipting and for the handling of damage claims. The receipted Bordero sheets and forwarding orders are forwarded internally for freight auditing.

Emergency handling of received goods If no Bordero paper is submitted to the receiving office, the goods are received on the basis of the accompanying forwarding orders or consignment documents. If there is no Bordero sheet complying with the requirements, the receiving office marks the Bordero sheet as invalid and the goods are received on the basis of the forwarding orders or consignment documents. The transport/consignment documents are assigned a BMW waybill no. which is then recorded instead of the Bordero position no. and must be subsequently sent via EDI. If the Bordero number is also missing, BMW allocates one of its own internal Bordero numbers which, however, is of no importance for the Bordero data EDI.

Emergency handling of consignments The BMW shipping point notifies about the shipments to be collected. During the acceptance of the shipments, the service provider is given the corresponding transport documents. In the case of a different loading point, the forwarding agent must notify the second shipping point that he has already loaded at another plant. The transport documents form the basis of the transport data EDI. The BMW shipping document is recorded instead of the position number.

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SHIPMENT COST SETTLEMENT

AUDITING THE TRANSPORT DATA EDI

All transports carried out by contract service providers are handled on the basis of the Bordero data provided by the service providers via EDI and the receipted Bordero sheets or transport documents (emergency handling). The data is checked for plausibility by comparing it with the BMW incoming goods data, machine audits and, where necessary, by manual intervention. Reference is only normally made to the transport documents in order to clarify any discrepancies. After approval by the freight audit, the goods are accounted for and communicated via the settlement log. Cost settlement and self-billing for transport data EDI The cost settlement of transports and the creation of self-billing are handled centrally on a SAP server. The SAP FMP high availability and data security ensure that the cost settlements are correct and on schedule. The data is archived and stored in revision-proof form.

COST SETTLEMENTS ON THE SAP FMP

Cost settlements are processed based on vehicles on the Bordero level. A Bordero consists of one to n shipments, a shipment can in turn contain n positions for different pallets. A Bordero forms the basis for optimized cost settlement variants. Loading meters, point loads, and volumes can be determined on the basis of the master data. To determine the chargeable weight the gross and volume weights are compared depending on the specifications in the master data.

Differences must be made between the following

• individual cost settlement per shipment • freight optimization and recording per Bordero • daily cost settlement (“inter-Bordero”)

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Freight is recorded for shipments on the same day from the same consigner to the same consignee with consideration e.g. to delivery term codes or goods/empties. The cost settlement is controlled by the master data maintained at BMW.

COMMUNICATION

SUPPLIER – SERVICE PROVIDER

The adjustment to Bordero handling does not have any direct influence on the handling between the supplier and the service provider. The transport request or dispatch advice is transmitted as before. Handing over of the forwarding orders via EDI is not prerequisite for Bordero handling. The handing over of the consignment and confirmation of its receipt are still carried out by means of the forwarding agent contract or the corresponding transport document.

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SERVICE PROVIDER – BMW

Transport data The transport data is transmitted to BMW by the program TRP-RTS.

TRP-RTS transfer list The web site www.trp-rts.net features the submenu “Transfer-Überblick” (“Transfer Overview”) in the INFOS menu. The forwarding agent can use this aid to pursue the course of his transmitted transfer files and so gain information as to when which data transfers are received and processed further at BMW. The web site’s log-in procedure means that the logged-on user (supplier number for the forwarding agent) can view only his own transfers. The data is updated overnight. The “Transfer-Überblick” (“Transfer Overview”) submenu shows the range of choices the logged-on forwarding agent (user) has. “Alle Tage” (All Days) shows all transfers accepted from the logged-on user. “Ein Tag” (One Day) followed by the affected date shows the transfers on this date: The respective time stamps allow no conclusions on the completeness of data in the BMW Group’s TRP-RTS or host system.

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The fields Lieferantennummer: Supplier number – logged-on user ID Transfer Sped.: Transfer forwarding agent – date and time when the transfer was created by the forwarding agent. Import BMW: Date and time when the affected transfer was read into the BMW Group’s TRP-RTS system. Host BMW: Date and time when the affected transfer was transferred internally from the TRP-RTS system to the

BMW Group’s host system. The Borderos are finally processed on the host system.

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Correction of the transport data – EDI No automatic correction procedure is ever provided. If EDI data previously submitted must be changed, this is only possible in agreement with the BMW Freight Audit Dept. This enables the EDI data to be readjusted manually to the Bordero previously received. Without this intervention, the EDI data is not included in the BMW in-house system and is therefore not processed either.

Releasing and correcting logs of the shipment cost settlement A report from the service provider is required for each settlement log. This report is made on the basis of the forms RWC and COR. • RWC: Released for archiving the settlement log without correction. • COR: Correction report on all Bordero numbers that have to be corrected within a settlement log and at the same time all Borderos not listed are released for archiving. Release without correction (RWC) With the release without correction report the service provider confirms the full recording and correct settlement of all shipment data. The settlement log is archived on the basis of this release report and cannot be corrected automatically any more. Correction report (COR) The correction report lists all the Bordero numbers which were not credited correctly according to the service provider. All Borderos listed in the report are debited with the same settlement log number as the credit previously made. The Borderos specified are then corrected, recalculated and reimbursed with a newly generated number in a new shipment cost settlement. A reason possibly required for non-corrected settlements is provided via the settlement log as a text for the Bordero position. There are only two error sources which can trigger a correction.

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In most cases it is caused by incorrect or missing shipment data and is only caused in exceptional cases by incorrect or missing parameters in the settlement part. • A change to the shipment data must be explained in a way that can be logically reconstructed. Documents such as a receipt,

delivery note, purchase order etc. might be necessary in order to do this. • If the settlement is incorrect despite the availability of correct and complete shipment data, then the source of the error is

caused by the settlement parameters stored. This could be due to pallet dimensions, the determination of the distance or the conditions of settlement.

The purpose of the following list is to provide support for a detailed correction report. All possible error causes and their effects on the shipment cost settlement are listed here. Information concerning the COR and RWC documentation The service provider is given an Excel file containing two worksheets with the above-mentioned correction forms for each order. The correction report can be e-mailed as an Excel file. The file name should contain the package number only, e.g. 8300099999.

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BMW SERVICE PROVIDERS

Settlement log Besides specific accounting information the settlement log includes all the main input data transmitted by the service provider via Bordero EDI for shipment cost settlement purposes. A very important aspect of this is the feedback facilitated by the consistently used key terms, opening up new possibilities for automated processing. Provision of settlement logs and data on the internet The settlement log and a separate list of all Borderos with the sums for the settlement log are provided for the service provider on the INTERNET. Access requires a connection to the internet via a customary World Wide Web (WWW) browser, e.g. Netscape Navigator or Microsoft Internet Explorer. The BMW Group Transport Logistics is found at the following address:

http://extkom.bmw.com/trp/ The homepage can be viewed only when you have logged on with your user ID and password. This ensures that only you, and no other user, can access the data affecting your company. A description of the procedure, the user ID and the password for your company can be obtained in a written request to [email protected].

Self billing and payment Once the settlement log has been provided, BMW prepares an account document which is automatically posted to the service provider over night.

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TIME LIMITS IN THE FREIGHT SELF-BILLING SYSTEM X = payment target

X

X days: X + 85

Payment target (days)

0

transport / Bordero date start of "payment target" time limit

Bordero data EDI specified time (payment target minus payment) / 2

for correct and complete transfer of Bordero data for a service day

EDI processing and settlement specified time (payment target minus payment) / 2 minus 0.1

for settling the Bordero data

Payment time needed for calculation, provision on the internet

and payment of settlement record

Correction process (fixed)

0 1

42 84 85

creation of settlement record start of "correction handling" time limit

correction report from SP 42 days' time (fixed) for service provider to check the AP and to send the COR/RWC report

correction processing at BMW 42 days' time (fixed) for BMW AG to process, cancel and debit the corrections

archiving of settlement data settlement data deleted following debit ing of the cancelled Borderos

Exceeding the time limits displaces all of the following processes to the right.

Processing ahead of the time limits has no effect on the following processes.

Correction process (fixed)

85

Payment target based on contract

Days:

(X minus 7) / 2 7

42 42

(X minus 7) / 2 minus 0,1

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Example for 35 days’ payment target

35 120

Payment target

0

14 28 35

transport / Bordero date start of the "payment target" time limit

Bordero data EDI 14 days' time for the correct and complete transfer of Bordero data for a service day

EDI processing and settlement 14 days' time for settling the Bordero data

payment 7 days' time for paying the settlement record

Correction handling

0 1

42 84 85

creation of settlement record start of "correction handling" time limit

correction report from SP 42 days' time for service provider to check the settlement record and send the COR report

correction processing at BMW 42 days's time for BMW AG to process, cancel, and debit the corrections

archiving of settlement data settlement data deleted following debiting of cancelled Borderos

Exceeding the time limits displaces all following processes to the right.

Processing ahead of the time limits has no effect on the following processes.

Correction handling

8535

Payment target

714 14

42 42

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DEFINITIONS

BORDERO

In the relationship between service provider and consignee, the Bordero takes over the function which had formerly been carried out by forwarding orders. This paper forms the basis for the electronic transmission of the Bordero data (Bordero EDI). One Bordero groups all the consignments carried on one vehicle on one transport journey (usually the main transport run) relevant for BMW (i.e. BMW is the consignee or at least the payer of the freight). It therefore groups all the consignments for different consignee locations (plants, etc.). Vehicles in this context are trucks, rail wagons, pallets and interchangeable platforms. In the case of interchangeable bodies, which are transported in pairs, one pair constitutes one vehicle (see e.g. truck and trailer handling). The Bordero is identified by the key details of forwarding agent no., forwarding agent enumeration and Bordero number. Example: The shipments from suppliers A, B and C are destined for plants 1.1 Munich and 2.4 Dingolfing and are transported on

the same vehicle for the main transport run; they have the same Bordero number. The Bordero sheet comes in two variants.

• The Bordero prepared automatically during the base handling • The Bordero prepared manually during the in-transit handling

BORDERO POSITION

A Bordero position corresponds to one consignment. The shipment comprises all the cargo items (goods, pallets, etc.) which are sent from a consignor (usually a supplier) to a consignee location (consignee’s office with own address). There is normally only one consignment per transport (consignor to consignee location).

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In cases in which important attributes of the various cargo items do not match, it is necessary to form several consignments. Thus, for example, it is necessary to form a separate consignment for the items of a specific type of dangerous goods. The cargo items of a consignment are described by the consignor on a forwarding order. The forwarding order is the basis for creating the Bordero sheet and Bordero EDI. The Bordero position number is used for identifying the consignment within the Bordero, i.e. the Bordero position.

PACKAGES FOR THE BORDERO POSITION

These are the packages (pallets) relevant for the loading, transport and unloading processes, i.e. these packages are handled and are relevant for purposes of cargo space calculation and shipment cost settlement. At least one specification must be made per package type within any one Bordero position. However, if several package markings (= package number or markings on labels) and/or statements of contents are made, several data sets per package type can be sent. A package is identified for the Bordero position by the package number and a serial number. The latter should not be sent by electronic data interchange: the EDI structure allows multiple transmissions of segments with the same package numbers.

TEXTS FOR THE BORDERO POSITION

These texts are used for the documentation and transmission of additional unformatted information. They contain: • References to split consignments • Notices of damage • Specifications of package dimensions in exceptional cases with pallets that have no master data and no agreed terms. This

information is used to review the plausibility of the loading figures given for these. • Dangerous goods classification and dangerous goods information

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DELIVERY NOTE

The delivery note groups the goods of a consignment that relate to exactly one order. The delivery note numbers in the Bordero position are used for referencing the delivery note information of the supplier. A delivery note is clearly identified by the supplier number and delivery note.

MAIN TRANSPORT RUN

This is the calculated route over which all the shipments on a vehicle are transported. In practice, the route actually taken need not agree with the theoretically most economical main transport run.

COLLECTION/DISTRIBUTION

This is the delivery from the consignor to the main outgoing transport point or the distribution from the main transport terminal to the consignee. Collection/distribution bundles all shipments with the same consignor/consignee.

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Index

Base handling 5

Bordero

Position number 7

Bordero data 6

Structure 4

Bordero handling

Principles 3

Bordero sheet 3

Bordero number 5

Bordero sheet 3, 8

Manual 6

Collection process 5, 6

Damage handling 3

Delivery note 5, 6

Dispatch advice 5, 6

Emergency handling 7

Forwarding order 5, 6

Freight auditing 4

Handling at base 3

In-transit handling 3, 6

Preparation of document 4

Receipting 4, 7

Transport handling 3

VDA forwarding order 4, 12

Waybill number 7

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ABBREVIATIONS

AD accompanying document CD consignment document VDA 4939 COR “Correction Report” form EDI electronic data interchange FO forwarding order VDA 4922 FSBS freight self-billing system

IG incoming goods MTR main transport run RWC “Release Without Correction” form SP service provider ST service traffic TD transport document

TRP-RTS Transport Record and Transmission System VDA Verband der Automobilindutrie e.V. [German Association of

Automotive Industries]