why PO need to create after Shipment costing.

[Former Member]

Hi..

Normally we are doing the SO followed by Delivery. After that we are doing the shipment and shipment costing.After shipment costing we are genarating the PO (to the forarding agent).

My question is what is the necessity to create a PO ? I need clarification on this.

Regards

Jyothi.

[Former Member · Accepted solution]

How would you settle the costs if you do not create the PO.

When do so the system automatically creates PO and LIV directly so the Liability is generated in SAP which is to be given to the forwarded agents in monetary terms.

However if there is some arrangment which does not require any paymnets to be given to the forwarding agents then probably settlement would not be necessary.

Is this what you required?

Thanks !

A S

[former_member182609]

The PO is nothing but your are paying amount to vendor provided service against your shipment.If your shipment is not cost related this process is not required.Once you created shipping cost you need to settle amount to forwarding agent.So this is a process to make the payment to vendor.

[Former Member]

How would you settle the costs if you do not create the PO.

When do so the system automatically creates PO and LIV directly so the Liability is generated in SAP which is to be given to the forwarded agents in monetary terms.

However if there is some arrangment which does not require any paymnets to be given to the forwarding agents then probably settlement would not be necessary.

Is this what you required?

Thanks !

A S