Freight Handling

[Former Member]

Dear All,

How to Handle Freight at Actual.

Scenario - While Creating Purchase Order, Purchaser does not have any Information regarding the Frieght.

So when he receives invoice he gets the Details and he enters in the Inoice Under "Unplanned Cost".

Is this the correct way or is there any other way to work on this.

Regards

Amey Kulkarni

[Former Member · Accepted solution]

hI,

Your scenario is not correct because the freight cost is not added to material cost during invoice entry time 'unplanned cost' booking.

Correct way to book freight cost are as follows :

1) if freight cost claimed by PO vendor along with their invoice and then PO should be amendment for freight cost enter in PO in the freight condition and then SAVE the PO. After release the PO, now doing MIGO the freight cost added into material cost and also posted into separate GL as freight cost.

2) If freight cost claimed by other vendor (non PO vendor), after received freight invoice to be open for the particular PO in ME22N and then added freight cost in PO amendment. The freight vendor code to be updated in the particular PO header menu > Conditions tab-> freight condition selected and then below condition details button (mirror icon button) selected and opened new window screen bottom vendor code to be changed as freight vendor code. After that MIGO doing freight added into material cost and then MIRO doing the freight cost to be posted into freight vendor account.

The above 2 methods are correct way to book freight because freight cost also added into material cost.

Hope, it is very useful for you,

Regards,

K.Rajendran

[raviraj_sharma]

In the Freight Condition type in PO, ask user to maintain some realistic (PlanneD) cost for freight.

Then at time of MIRO, you can select Option "goods /service +Delivery costs " or only "delivery costs" (depends if freight and goods vendor is same or not ) and enter the actual value as per invoice .

One thing to note here is that if actual value is different from planned value , system to post the difference to inventory or PRD depending on the Price control of the material and also on the stock present at time of Invoice.

[Former Member]

@Ravi

Thanks 4 the reply.

But the issue is they dont want to enter in the PO, if they enter the realistic value it will affect the MAP also.

They only want to enter when the actual invoice copy is received

[raviraj_sharma]

Entering realistiic value will affect MAP, and also entering the correct value at time of MIRO will correct it , so I really dont see the problem here, this is the way Most companies are handling freight (which is not known exactly at time of ordering) .

Ammendment of the PO just before GRN as suggested by above poster is also one way you can treat it, but it leas to a lot of inconvenience and manual intervention . also in case you have release strategy in place then that will be affected as well.