The shipping point is the central organizational unit in SAP S/4HANA Sales and Distribution responsible for all shipping activities. It is a specific physical location within a delivering plant from which goods are dispatched. All outbound deliveries are processed via a single shipping point. This unit is responsible for scheduling, picking, packing, and goods issue, thereby enabling the processing and monitoring of outbound deliveries. The determination of the correct shipping point is a crucial step in sales order processing to ensure timely delivery.

A. Distribution channel: This defines the channel through which goods and services reach customers (e.g., wholesale, retail) and is not a physical location for shipping.

B. Warehouse number: This is an organizational unit for Warehouse Management (WM/EWM) that manages stock within a warehouse, but it is not the primary unit for organizing the external shipping process.

C. Plant: A plant is a location where goods are stored or produced. While deliveries are shipped from a plant, the shipping point is the more specific organizational unit within the plant that handles the shipping activities.

1. SAP S/4HANA Help Portal

"Shipping Point": "The shipping point is the top level in the organization for shipping. Each outbound delivery is processed by one shipping point." This document explicitly states the function of the shipping point in processing outbound deliveries. (Accessed under SAP S/4HANA -> Sales -> Shipping (LE-SHP) -> Basic Shipping Functions -> Organizational Structures in Shipping).

2. SAP S/4HANA Help Portal

"Organizational Structures in Sales and Distribution": This section details the hierarchy of organizational units. It defines the shipping point as an independent organizational entity responsible for the entire shipping process and is assigned to a plant. This confirms its role as the key unit for shipping. (Accessed under SAP S/4HANA -> Sales -> Basic Functions and Master Data in SD Processing -> Organizational Structures).

3. Magal

S. R.

& Word

J. (2021). Integrated Business Processes with ERP Systems. Wiley. In the chapter on the Fulfillment Process

the text describes the shipping point as the "location in a plant from which outbound deliveries are shipped" and details its role in initiating and managing all shipping-related tasks like creating outbound deliveries and posting goods issue. (Typically found in Chapter 5

Fulfillment Process).