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planned delivery cost & sub-sequent settlements

hi ,

what is meant by planned delivery cost ?

what is meant by sub-sequent settlements ?

when they are useful in MM

regards

Former Member
Former Member replied

Hi

<b>Planned delivery costs</b> are the costs agreed with the vendor or goods supplier before the purchase order is created. You enter these as conditions in the purchase order.

Planned delivery costs can be differentiated as follows:

Origin of Costs

Freight charges

Customs charges

Calculation of Costs

Fixed amount, irrespective of delivered quantity

Quantity-dependent amount

<b>Subsequent adjustment</b>

In sub contracting scenario After the subcontractor had delivered the ordered material , you post the goods receipt to the subcontract PO. The system determines the necessary components for each purchase order item and creates for each component a goods issue item with the quantity that was determined in the purchase order

If the vendor informs you after these postings that a greater or smaller quantity of the subcontracting components was actually consumed than planned in the purchase order, you must post a subsequent adjustment to correct the component consumption.

If the component is a by-product, you must post the corrected by-product receipt (excess receipt) or by-product issue (short receipt)

Similary there is a subsequent credit / debit carried out when an additional invoice or credit memo is received for a transaction that has already been invoiced in LIV process

Thanks & regards

Kishore

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