Advance on Freight Condition

[Former Member]

Hi,

While creating a purchase order if we have to process down payment then we mention DP % either at header or line item level. Through ME2DP then we can create DP request. For freight we have created a condition so the freight cost is added to material through condition type.

Issue is we have a different freight vendor and we need to give advance to the freight vendor.

Please suggest how advance can be processed on the freight condition as for advance system applies DP% on the net amount of the PO and does not consider the value for advance.

Any thoughts how it can be achieved? Kindly note that we don't want to process advance directly in Finance.

Regards,

Darsh

[pardhreddyc · Accepted solution]

Dear,

Did you link your freight vendor to the freight condition? if so you can process using transaction F-48 and you can link the purchase order.

Kindly check this.

Regards,

Pardhu

[Former Member · Accepted solution]

Dear Pardhu,

Yes we can do that however the problem is it will consume the amount of the main item.

For example material price is 12,00,000. Advance at line item level is 10%. So the total advance amount will be 1,20,000 that we need to pay to the main vendor.

If we give advance to freight vendor (let's say 15,000) then the advance limit of main vendor will reduce to 1,05,000.

Any suggestion to tackle this. An in built check has been applied where user cannot process more than specified percentage (here 10%). Also, if we increase the advance percentage from 10 to 12%  then we are at risk of giving more advance to the main vendor.

Regards,

[pardhreddyc · Accepted solution]

Dear,

In this case you can process with out linking the P.O , but assign the P.O number in header text so that you can see it in FBL1N data.But you need to put some logic to validate the P.O for the freight vendor advance payment.

At the time of invoice you can check these documents.

Hope this may help you little bit.

Regards,

Pardhu