change Account determination for free of charge shipping goods

[Former Member]

Hi SD experts,

We have a business process such as shipping goods to customer free of charge and no billing occured afterward.

Currently according to our MM account assignment setting, following account entry occur when we post goods issue.

_______________________

COGS 100  |  Inventory 100

But since there is no billing happens in the subsequent process, billing qty will not be transfered to COPA, this generates the gap between

FI COGS account balance and COPA COGS balance.

Also it does not make any sense to post COGS for transaction which is not actually billed.  Therefore, we are considering to change the current account assignment configuration by adding new movement type and make it mandatry to assign cost center for sales expense (not manufacturing expense).

Here is my requirement, but no idea how to do it since I am not goods at SD configuration.

1.  When this free of charge shipping occured from SD delivery transaction, I would like to automatically change the movement type (not 601)

    then would like to post other expense account not COGS account.

___________________________________

Other Expense 100   |      Inventory 100

2.  To avoid mistake, I would like to automatically derive cost center for sales expense when this new movement type is selected.

Please give me step by step configuration for fullfill this user requirement.  (Also please give me IMG path where I need to change in detail)

Thanks for your kindly help in advance!

[Former Member · Accepted solution]

Hi Jiro,

I think to resolve your issue with COPA. Create a billing document against that free of charge delivery document with 100% discount. then it will book into your expense.

For this use Item Category similar to TANN, and in Pricing procedure keep Condition type similar to R100.

Hope this will help you.

Regards,

Yogesh

[Former Member · Accepted solution]

Hi, Yogesh,

Thank you for your reply.

Yes 0 billing is one of the option, but we do not prefere this approach from Fi perspective view.

Could you kindly give me the solution with account determination change?

[Former Member · Accepted solution]

Billing Zero is not that you have to give 100% discount on product price. You can give it on VPRS.

Then from FI perspective it would be Expense book as on Internal price.

Hope this will help you.

Regards,

Yogesh

[Former Member · Accepted solution]

Hi Yogesh,

How you can give 100 % discount on a statistical condition and what will be your invoice value since they  ?

There  are different ways of handing free items in SAP. For you if you don't want to create an invoice -

1) create a FOC order ( new order type)

2) put an incompletion procedure to assign internal order mandatory.

3) Item category not relavant for billing .

So.. Order- delivery - Goods issue. Cost will be booked against the cost center.

Thanks,

Rupak

[Former Member · Accepted solution]

ummm...  but Yogesh, delivery already create the accounting journal like COGS / Inventory already.

My issue is this posing. 

[Former Member · Accepted solution]

Rupak,

>So.. Order- delivery - Goods issue. Cost will be booked against the cost center.

Yes, This is what I want.  But I need to also change the account assignment not to post COGS when PGI document created.  I think we already have doc type ZS3 for free of charge which is not relavant for billing. 

Can you tell me how to change the account determination when free of charge delivery occurs?

Can we change the movement type depending on delivery document type or item category?

Also is there any good way to automatically derive the cost center the cost should be booked?

Thanks

[Former Member · Accepted solution]

Hi Rupak,

VPRS is only react as Statistical in nature when we made it there is no hard thumb rule that VPRS has to react in that way only.

For doing this we can create a pricing procedure only for such kind of sales. and in this pricing procedure keep VPRS as non-statistical in nature and calculate R100 on VPRS.

Regards,

Yogesh

[Former Member · Accepted solution]

Hi Jiro,

But where it is hitting in expense. and how can u bifurcate this type of sales in FI

Regards,

Yogesh

[Former Member · Accepted solution]

Hi Yogesh,

I want expense to be charged in cost center and GL account to be "Other Expense" not COGS.

For this particular transaction, I want the movement type for delivery to be different than 601.

As i googled, movement type for delivery can be controlled by scheduled line category in SO.  So now I want to define new schduled line category say "ZP" and assign the movement type like Z99 (New one) in t-code VOV6.  But now, I am wondering how to automatically derive scheduled line cateogry ZP when I create the SO for this free of charge process.  Any idea???

[Former Member · Accepted solution]

You can determine a new schedule line category based on item category (through customisation ). And give a different movement type in the schedule line category defination.

You can derive a default cost center based on Order reason ( in sales order). The cost center can be assigned to the order reason in customising . So whenever you assign the particular order reason that cost center will be picked , however you will always have the option to change it in the order .

[Former Member · Accepted solution]

Yogesh ,

What about the price in the invoice since they don't want a zero invoice ?

Thanks.

[Former Member · Accepted solution]

scheduled line is determined based on item category , so create a new item category for the order type and first do the customisation for the item category determination . Check SD customisation settings under sales- sale document

[Lakshmipathi · Accepted solution]

If you dont want the inventory posting to happen in the standard way, you create a new movement type in OMJJ by copying the standard 601.  There double click on the tab "Account Grouping" so that a screen will appear.  There whatever changes you make under the tab Account modification, system will post the value accordingly.  Consult with your MM / FI colleagues, do the changes as required and test for the outcome.

G. Lakshmipathi

[Former Member · Accepted solution]

Hi G Lakshmipathi

Thank you for your advice.  Yes that was what I have done now.

I copied Movement type 601 and 602 to create Z61 and Z62.  Also created new account modification key so that OBYC assignment cannot be overrapped. 

Thanks!

[Former Member · Accepted solution]

Hi Rupak,

I actually configured as you mentioned.  Now, When I create the sales order with order type ZS3, the combination of Item category and MRP type automatically derived the scheduled line category which automatically also derive my new movement type Z61.  Now can you give me a light for order reason to derive the cost center automatically in detail?  Step by step configuration with menu path would be highly appreciated.

[Former Member · Accepted solution]

I found that assigning cost center to order reason can be done from tcode OVF3.