How to do Forwarding agent settlement without activating shipment?

[Former Member]

Hi Experts,

We have below scenario

Example

A = Company

B= Transporter

C= Customer

Customer places the order with the company for 100 bags of cement. For shipping the cement Company takes the service of Transporter to ship the bags to the customer .

Company invoice the customer and pays the freight to transporter

As there is no shipment activated in the scenario

What I have done

1) I have created a partner function as Forwarding Agent in the customer master

2) And my sales cycle is running fine (Sales orde-Delivery-Billing) partner function as Forwarding Agent flowing correctly

My question is how I will settle the forwarding agents payment of freight? (Which transaction codes involved)

Is it possible to settle the forwarding agent without activating the shipment??

Need your help in this scenario

Thanks

Krushnakumar Rathi

[former_member183879 · Accepted solution]

Hi,

Ideally speaking you have to enable shipment cost in order to settle the cost to the transporter.

However if you decide not to enable this, you have to do this by means of MM process.

The forwarding agent should be created as a vendor in MM.

Once in a month, you have to calculate the total freight to be paid to him by finding out the summation of the freight condition type in the sales invoices.

Now create a PO and mention a service (use a material number to represent the service). For this PO, you can trigger automatic GR/Confirmation of Service and creation of logistics invoice with the value of the freight charges.

Towards this LInvoice, you can settle the amount to the forwarding agent.

The second way can be by means of credit memos in SD

Create a Credit Memo request using forwarding agent as the payer (in this case you have to create the forwarding agent as a customer account group)

The CMR should have the value of the condition type as the frieght value of the invoice in which the frieght is charged to the customer

Based on this CMR, create the Credit memo and pay the money to the forwarding agent. So the cycle will look like this.

SO Creation by Customer (Freight charge will be included in SO pricing)

Delivery to customer

Invoice sent to customer (with freight value charged to the customer)

Payment received from customer

Raise a Credit Memo request using the forwarding agent as the payer

Include the freight valueof the invoice in teh credit memo

Create the Credit Memo with reference to the CMR

Now do the payment to the forwarding agent.

[Former Member · Accepted solution]

Thanks for your answer Snavaneetha

"The forwarding agent should be created as a vendor in MM.

Once in a month, you have to calculate the total freight to be paid to him by finding out the summation of the freight condition type in the sales invoices"

Hi Snavaneetha,

What if I am charging more freight to customer then I am paying to Trasporter?

In that case I need to create 2 condition type or how I will map it??

Thansk

Krushnakumar Rathi

[former_member183879 · Accepted solution]

You can charge more to the customer than what you are paying to the forwarder. You can use only one condition type or two condition types. It really doesnt matter. But if the customer asks you why he is charged under 2 headings for freight you should be able to answer!. So the better way will be to use only one condition type with a mark up which only the business knows.!!

You can find out the amount to be paid to the forwarding agent by finding out the values of the specific condition type created during a particular period from the table KONV. In this table , you can find out the value of the condition type for sales orders or invoices. You can create a report for this purpose and use this report instead to calculate the value monthwise. Your developer can help you much on this.

[Former Member · Accepted solution]

Hi Snavaneetha

Yes this solution seems good, but one clarification what is mark up means, it is some statistical condition type added on base value of the goods??

Thanks

Krushnakumar Rathi

[former_member183879 · Accepted solution]

Hi,

Mark up is nothing but a percentage of profit you make on a sale. So if you want to make 10% markup on your freight, instead of 100 you will give the freight charge as 110

[Former Member]

Thanks

[reazuddin_md]

Apart from the suggestions given above, There is another way to do,

- Once Invoice is created, through enhancement create Invoice to Vendor ( Tx:FB60) which has to run subsequently after the invoice with the freight amount available in Billing

- flow the Invoice no in "Reference" field for future reference for tracking

- Either you can use this for direct settlement or while creating park the invoice & later when actual settlement takes place you can clear the parked invoice.

Regarding tracking, there are many ways to handle either through reference / vendor no / report etc..,

Hope it adds info,

Regards,

Reazuddin MD

[Former Member]

Dear Mr. Rathi

If you are not using shipment and shipment cost then the solution is to create a service PO for the transporter, then service entry sheet and later invoice verification with MIRO.

To link these documents, You can use user exit MV45AFZZ, userexit_save_document prepare. Where a service PO screen can be called at the time of save.

Thanks

Shuktiz