loading freight cost on inventory

[Former Member]

Dear All

I am implementing LE .Our client want freight charges to get uploaded on inventory during STO. Will any-one please help me to get rid of this problem , I want urgent solution for this .

Best Regards

Parveen Kumar Thakur

[Former Member]

In your price determination process. In node "Define Schema Determination" check the schema assigned for STO.

Then go to that schema under node "Define calculation schema" check if you have any condition type for Freight condition.

In case if you dont have assign your freight condition type in the schema. Then you will be able to maintain the freight cost against this condition type and it will be loaded to your material cost at the time of GR

[Former Member]

Dear All

Lemme clear my question .When i am not using LE then i do have process where i will be having a condition type of freight at STO type , I shall do delivery(VL10D) against that PO number, PGI and at the time of GR at receiving plant that freight will get uploaded to material which is having price control " V ". Now as I am using LE my freight will be calculated at VI01(freight cost calculation) , there will not be any condition type at PO level . Now i want that(VI01) freight to get uploaded on material .That means some how my VI01 document will be linked to PO and I guess this is possible by doing configuration at " Shipment Cost Item Categories " .Please provide me solution if this can be done or give me any other alternate . I am running late so please do help me.

Best Regards

Parveen Kr Thakur

9309460061

[Former Member]

Hi,

If I understand you correctly, you want to link the costs incurred from Shipment Cost document to your material PO, and you don't want to settle the Shipment Cost to Freight PO, which is generated automatically by the system.

Here is few things you would need to consider doing:

1. You need to configure a pricing condition in the Pricing Schema (in MM) for the cost (i.e. ZFRT). Path: (SPRO-> Materials Mgmt -> Purchasing-> Conditions -> Define Price Determination Process --> Define Condition Type).

2. For the condition type you created in Step #1, ensure that the condition category used is "B" (Delivery Costs) and with that, you will find the checkbox "Copy shp.cost" in Control Data 2. Ensure this checkbox is checked.

Note: Using this indicator you can set the system so that the delivery costs are determined during the goods receipt posting from the existing shipment cost documents.

3. Add this condition type to your Calculation Schema (as how you would normally configure for MM pricing).

4. Then, for the Shipment Cost Item Category you are using, disable the the freight PO generation (as you do not want to settle it separately). You can use setting "Do not generate PO" for this. In this case, the shipment cost is only created for statistical purposes, and are not transferred to FI.

After you have completed the above, ideally your process flow would be this: Create STO --> Create Delivery --> Create Shipment --> Post Goods Issue --> Create Shipment Cost document (it has to be created before GR) --> Post Goods Receipt (at Receiving Plant).

Hope the above helps.

Thanks.

Edited by: Kok Wai Phang on Nov 21, 2011 4:02 PM

[Former Member]

Dear Mr KOK

I appreciate and glad that you revert back with such a helpful answer but would you please tell me that what would be the other settlement entries at shipment cost item category LIKE :

1 ) Cost Dist

2) Acc assigt cat.

3) Origion CO

4) settlement rel. ?

and now against what document i shall do billing to forwarding agent. ? can't i generate PO for forwarding agent simultaneously

Again Thanx a lot for your help.

Best Regards

[Former Member]

Hi,

Apology, I am not clear what do you require from your reply message about those items you have listed. Did you want to understand what they are or did you want to know what configuration settings to maintain for those? Those settings are dependent on your requirements.

1) Cost Distribution - this settings explains the different method possible for apportionment of the cost during settlement (Transfer to CO) - which you can select from Shipment Cost Item, Delivery or Delivery Items.

2) Acct. Assignment Cat. - It allows you to settle the cost to various accounts - used in account determination in tcode OBYC (GBB - > VBR). Where those are setup, the desired account is determined in the shipment cost document.

3) Origin of CO - This is used to determine where the origin of the CO object should be determined from. The selection provides you various sequences, which you can possibly use. It is possible directly through a G/L Account, through the sequence of Delivery, then if not found, it will determine from Order and finally through the sequence of Delivery, Order and G/L Account.

4) Relevant for settlement - In this case, depending on your requirement you can consider the option of settling through a G/L account or through the delivery costs method (which is detailed in "a" and "b" below). Otherwise, the settings commonly used is "X".

And, I am not sure what is your real intention here, but definitely you can generate PO to forwarding agent simultaneously, and then perform MIRO against the forwarding agent/shipment cost document/PO. It depends on your requirement, and in some instances, a company can have an agreement with the customer or vendor that the transportation cost is to be borne by them along with the materials procured or sold.

Hence, there are three possible methods the shipment cost can be handled:

a) The cost is to be included in the PO for the material (which I have just explained above)

b) The cost is to be included in the Billing document for the customer (in the case of Sales scenario)

c) The cost is to be handled separately in a shipment cost document --> Freight PO --> Payment to Forwarding Agent (which is the common practice by many).

Hope the above helps.

Thanks.

[Former Member]

Dear Mr Kok

As in your first reply i did the configuration related to condition type and check the " Copy Shp cost " check-box .

Now my question is what should be the configuration of " shipment cost item category " in this whole process . As I want to load the freight cost on inventory , simultaneously I want PO to be get generated in background against forwarding-agent.

Best Regards

[Former Member]

Hi,

Any specific reasons why you are also triggering a Freight PO to the forwarding agent separately? Based on your settings, you would already have passed on the delivery costs to your PO with the settings you made.

However, if you still require, you can always maintain generate PO for daily, weekly or monthly as you desire, and maintain in the relevant for shipment cost as "Delivery costs". In this case, your Freight PO triggered by the system can be forwarded to the forwarding agent.

Thanks.

[Former Member]

Dear Mr Kok

My apology but i did not get my freight uploaded on inventory at the time of GR. I have done the necessory changes in Pricing schema of MM and in condition type .

Hereby i am sending you the configuration of my shipment cost item category.

Cost dist. = " C "

Acct Assgt Cat. = K

Settlement date = 0001

Origin CO = A

Settlement rel. = X

Generate PO = A

Regards