Determination of Tariff Zones in Shipping

Dear All,
Can anyone explain how tariff zones are determined & whats its role in Shipment cost pricing?
Regards,

Hi LakshmiPathi,
Thanks for the response.
Please note that I have maintained postal codes in my Shipping point also in my customer master.
For the combination of TP Point, Service agent, Shipping type & Country I have made the following assignment.
I have given my shipping point Postal code in both the Postal code columns of Tarff zone assignment (say Tariff) & my customer master Postal code in both the Postal code columns of Tariff zone assignment (say Tariff1).
Now I have maintained the condition records in TK11 for the combination of Depart. Tariff zone/Destn.Tariff zone/Service Agent i.e. Tariff/Tariff1/Service Agent
But my condition record value is not getting determined & when I simulate my shipment cost I am getting the following error message.
Shipment costs not yet calculated
Shipment costs item 000001 w/ ref. to doc. $0001 item 0001
Message no. VY104
Goods types directory could not be determined
Message no. VW803
Please help to reolve this issue.
Regards,

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    HI Dave,
    Thanks for the response.
    Please note that I have maintained postal codes in my Shipping point also in my customer master.
    For the combination of TP Point, Service agent, Shipping type & Country I have made the following assignment.
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    Please help to reolve this issue.
    Regards,

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    Regards

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