Delivery Cost non-inventory

Dear Friends,
Can you help me with a scenario where I need to have a Delivery Cost Condition type in my MM pricing procedure, which will not hit the inventory, but will be paid to the vendor. So no effect of that value during GR but will effect only in IR.
Do I need to do any setting in Cond Type, Pricing procedure or account determination?
Please suggest.
Regards,
Anubhav

No what u r think is not possible
delivery cost will go to inventory only
no way u can avoid that in std
IF freight value is to be paid to same vendor and he puts that cost in his invoice
eg
basic price 10000
vat                400
freight          100
tot             10500
and u dont what to add freight to materia cost than either dont show freight cond in po or keep it as statical cond
and while doing MITO use GL tabe where u can put this Freight amount in some GL acount.
If freight has to be paied to diffrent vendor other than PO vendor
then pay it by FB60 direct FI
hope this helps

Similar Messages

Loading of delivery cost on inventory in depot

Hi All,
I want post the value of CVD,Additinal duty and custom on inventory in import depot procurement. Same time this should be update in RG23D register. please suggest what should be procedure/customization for this ?
Thanks in advance..
Regards,
Sanjay

Hi,
In case of Depot Purchase, there is not any FI entry generated for Excise Duties.
Of course, there will be RG23D entry in RG23D Register if Plant is declared as Depot in config.
If you are receiving material from any of the plant or vendor then you have to incorporate all the import duties in MM Pricing as Delivery Cost condition to load on inventory.
Create following condition types in M/06 for Import Duties
ZCDB     Basic Customs Duty
ZCV1     CVD
ZECV     Ed Cess on CVD
Z1CV     H&SECess on CVD
ZEBC     ED Cess on BCD
ZSDB     H&SECess on BCD
ZADC     Addnl Duty of Custom
Keep following control data for the above conditions;
Cond. class   A Discount or surcharge
Calculat.type A Percentage
Cond.category B Delivery costs
Plus/minus    A Positive
Accrual indicator as active
Vendor in GR 2 Entry always possible
In M/08, insert the above condition types in MM Calculation Schema of Stock Transport Order OR Normal Vendor Purchase (As per requirement)
And assign Accrual key for all the above condition types. For e.g. FR1 or create new and then assign
In OBYC - Assign GL Account to the above Accrual key For e.g. Import Duty Clearing A/c
1. ME21N - In PO, maintain values against these condition types
2. MIGO - At the time of GR, following entry will get posted
If it is purchase from vendor then;
Stock A/c - Dr - 110
GR/IR Clearing A/c - Cr - 100
Import Duty Clearing A/c - Cr - 10
If it is Stock Transport then;
Stock A/c - Dr - 110 (Receiving Plant)
Stock A/c - Cr - 100 (Supplying Plant)
Import Duty Clearing A/c - Cr - 10 (Supplying Plant)

Delivery cost non editable

Dear All,
After canceling GR after PO , i want to change freight value in PO
but the freight condition is in non editable mode, i try to delete condition but system gives massage
Condition cannot be deleted, even i try to put new condition it gives massage You cannot enter new delivery costs.
Pls help

Hello,
In the condition record definition (SPRO->Materials Management->Purchasing->Conditions->Define Price Determination Process->Define Condition types), you have to set Manual Entries option to C (Manual entry has priority). Then only it becomes editable in PO conditions screen.
Once you have done this, you have to reprice the PO (ME22N) in conditions screen (This will work since you have already reversed the GR).
Thanks,
Venu

What are options for applying non-inventory costs to production orders?

We have a non-inventory costs that need to be assigned to product produced on production orders. There are two processes -make-to-order and make-to-stock.
Currently we use activity rates to apply labor and burden costs to our production. We use separate cost centers where needed to ensure that we have sufficient granularity to our activity rates applied.
We have a few specific issues where we need to understand the options for applying costs -
1) We have freight and duty costs related to inbound raw material that we want to assign to our final product. The amount assigned may be either a specific amount (or a specific amount per model), or a % of the total cost on that production order.
2) We have material on the production order bill of material that is called out by quantity and we are using discrete backflush, however we have found there are issues with the accuracy of the quantities. We want to have this product ordered using KANBAN (bin ordering) and have the value relieved from inventory when the bin is issued to production. The cost on the production order is envisioned to be an average amount for the product - or an average amount by model.
3) We want to have a portion of cost for production scrap included in the cost of each product produced. (similar to freight and duty).
In all cases- the amount can change depending on analysis from accounting regarding freight and duty costs (these fluctuate depending on the cost savings we achieve with combined loads and depending on the amount of out of country sourcing), the scrap amount may change periodically depending on the initiatives to reduce scrap on the production floor, etc.
We currently use three activity types, labor, burden and tooling. It is my understanding that there is a limitation in SAP that keeps us limited to 6 activity types.
My questions are:
Are we limited on activity types? these are an option to apply additional costs, but may not be the best option if we want to change the amount applied based on model or apply as a percentage.
Are there other options for applying costs that we can explore? I want to be sure we take into account the various options available before we start down a specific path.
Thank you in advance for your assistance.

As clarification- we are using standard costing for our raw material. We currently accumulate the incoming freight in a balance sheet account. This is treated as part of our inventory. We have considered using an activity type with a activity added to the BOM to apply the cost to the production order. Then we could use the secondarly cost element data to book an entry to relieve the freight account on the balance sheet.
Because we use standard costing- access to see production order variance is critical and must be maintained in any process we select. We also use COPA reporting- so the costing information must be able to flow to COPA for the specific orders/products/serial numbers.
We are doing make to order (production order / sales order specific combination) but also looking at a make to stock process - so the method to apply costs must take both of these configurations into consideration.
Rajneesh - you mentioned that I am limited to 6 activities in a work center- but does that mean I can have more than 6 activity types in SAP but only 6 activities in a work center/cost center combination?
Thank you.

Picking non inventory items for delivery

hello
Can anyone help us with the following issue :
- in our deliveries we have both inventory items and non inventory items (freight lines, software). Non inventory items have to appear in the same delivery document as the inventory items
- we cannot create those non-inventory items in inventory as they cannot appear in any stocktake
- the picklist doesn't accept to release non-inventory items for picking
Any idea ?
Fabrice

Hi Fabrice,
Just an idea. Will it work if you create the non-inventory items in your item master data as just a sales and purchasing item, but not an inventory item? That way you can include it along with your inventory items without having any impact in your stocks. One issue is that the non-inventory item will not be shown in your pick and pack, but you can print a copy of your sales order as a pick list.
Gavin

Non-delivery costs in TP/VS

What is the logic behind maintaining Non-Delivery Costs in TP/VS Cost Profile? How should you calculate the amount of non-delivery cost? If we do not maintain Non-delivery cost, what are the implications and how it impacts the TPVS planning during optimiser run?

Hi Sunil,
Non-delivery costs specifies the costs fixed for the vendor as the penalty for the non-delivery of goods. This can be equated to loss of sale that would happen if not sold or delivered on time.
For eg, in some scenarios, if there are sample orders to be executed, if those are not supplied on time, it leads to further cancellation of actual order etc.,
These costs are not a real value, but a theoretical value taken into consideration by the Optimizer. You maintain the penalty costs per day, whereas the Optimizer calculates the penalty costs per time unit (seconds) (i.e. it does not round up to full days).
The more important it is that a delivery takes place, the higher the costs you maintain here must be fixed in order to avoid non-delivery.
These costs should be higher than the costs that arise through the transportation of the ordered goods. Otherwise the Optimizer decides that non-delivery is cheaper than delivery and does not generate a shipment. The costs that arise through transportation comprise earliness or delay costs, fixed costs, and the dimension costs (time, stop-offs, distance, quantity) of all means of transport.
Regards
R. Senthil Mareeswaran.

Automatic settlement of delivery costs MRDC for service PO

Hi,
We configured a custom condition type ZCOM (Commission). This condition was assigned to pricing procedure RM0000. This condition is defined as a delivery cost condition with accrual.
PO for non-inventory material:
- Free text item for 10 EA @ $100/EA
- ZCOM condition added at the item level for 10% ($100). Vendor in this condition is different that PO vendor.
- GR for 1 EA
- PO history shows: GR (101) for 1 EA with total value $100. It also shows DCGR for 1 EA in the delivery cost quantity and value $10.
Run automatic delivery cost settlement (MRDC): It created invoice for the freight vendor using the delivery cost amount of $10. In PO history it shows: DCIn for 1 EA in delivery quantity field and amount of $10.
PO for services:
- Free text service for 10 EA @ $100/EA.
- ZCOM condition added at the item level (not at the service level) for 10% (value $100).
- Service entry sheet for 1 EA with value $100
- PO history shows: SEnt for $100. GR (101) for $100. It also shows DCGR for 1 AU in the delivery cost quantity and amount of $10.
Run automatic delivery cost settlement (MRDC): It created invoice for the freight vendor NOT using the delivery cost amount of $10. It created an invoice for the full line item amount of $100. PO history shows: DCIn for 1 AU in delivery quantity field and amount of $100. This is wrong. It should have created the invoice only for $10.
Any help on what is going on it is greatly appreciated.
Thanks and regards, Jose Oyon.

no, SAP does not know this kind of fixed conditions.
even a fixed condition is depended on the quantity, and adjusted to the GR quantity if it differs from PO quantity.

Formatted Search - Calculate GP Base Price for Non Inventory Items

Hi Experts,
On one of our customer's 8.8 PL 15 installation, requirement was to calculate GP for Non Inventory Items (on SO screen). Since SAP does not automatically calculates it we proposed and implemented following solution.
1. Have all Non Inventory Items to be costed at Standard cost so that you can manually enter the cost in the Item Master.
2. Write following formatted search on GP Base Price field so as to calculate the GP Base Price for the Non Inventory Items only. The formatted search must not make any changes to Inventory Items as we want system to calculate the GP automatically (just in case cost changes from SO to Delivery or Invoice).
DECLARE @II AS nVarchar(1)
DECLARE @COST AS Numeric(19,2)
SET @II = (SELECT OITM.InvntItem FROM OITM WHERE OITM.ItemCode = $[RDR1.ItemCode])
SET @COST = (SELECT (OITW.AVGPrice * $[RDR1.NumPerMsr]) FROM OITW WHERE OITW.ItemCode = $[RDR1.ItemCode] AND
OITW.WhsCode = $[RDR1.WhsCode])
IF (@II = 'N')
BEGIN
SELECT @COST
END
3. Formatted search achieves what was originally required however if a user overwrites the Item Code (Inventory Item) in the SO then above formatted search clears the GP Base Price field and sets the GP basis for the item as "Manual". By obverwrite means user first selected item A0001 on line 1 and then entered A0002 on same line i.e. Line 1.
My question here is what is wrong in the formatted search that is resulting in this behaviour.
Any questions please let me know.
Thanks in advance.
Regards
Devinder

Hi Gordon,
Thanks for taking out time to help me however Key requirement here is
Write formatted search on GP Base Price field so as to calculate the GP Base Price for the Non Inventory Items only.
Your query sets the base price for GP Base Price for Inventory Item to ZERO and Base Price By to Manual.
Note that my Formatted search has a problem only when an Inventory Item line is overwritten. I am not sure if this is a problem with SAP itself rather than my query.
Any other ideas please?
Regards
Devinder

Purchasing - A/P Transaction Processing for Services and Non Inventory Item

On of the main areas of concern that businesses have is in the area of Purchasing, Goods Receipts and AP Invoices Processing - There is a requirement that businesses have widely referred to as 3-way matching.
While SAP Business One has this functionality covered quiet well via the following, there is still some need for enhancements so that the application can correctly reflect the AP Accruals:
- Purchase Order processing with Approval Process (if configured)
- Ability to perform Goods Receipts for Services.
- Matching of AP Invoices to Goods Receipts with AP Invoice Approval Process (if configured)
The above transactions serve the 3-way matching quiet well for all purchases however when it comes to accuring for Services that have been provided, the application does not do this. The Goods Receipt transaction processing to acknowledge the service delivery is allowed however the related posting to the allocation account is missing.
The process that is followed by the application is same for Items that have not Inventory Items in Item Master.
As a result of the above, the business have to manually work out what the Accurals for services provided but not invoiced should be.
With little enhancement to the product this shortfall could very easily be overcome.

Hi,
Once there are transactions, we cannot make existing Inventory type item to Non Inventory type item.
Check SAP note:937297 which states as follows :
Symptom
Changing the status of the Inventory Item checkbox (in Item Master Data) for items with inventory transactions and documents, might lead to inaccuracies in the calculations of inventory value.
Other terms
Inventory Item, Non-inventory Item, Item Master Data, Continuous Stock, Perpetual Inventory, Inventory Valuation, 2004, 2005, 2005 A SP01
Reason and Prerequisites
Consulting Note
Solution
The status of an item (Inventory Item/Non-Inventory item as selected in the Inventory Item checkbox in the Item Master Data window), cannot be changed once an A/P, A/R, or Inventory document is posted for the item.
Regards,
Jitin Chawla

Question on uplanned delivery costs need to go to GL account

Hello
I have a question regarding unplanned deliver costs. I am a FI analyst Can you please explain my how I can solve my problem . My user wants unplanned delivery costs to go in to the GL account .
In MM account determination GL account is set up but when I am doing MIRO
. I am putting total amount in amount field and freight costs in unplanned field under detail section.
When I simulate it gives me tax code related warning when I hit enter it credit vendor and debits GR/IR clearing and some debit to inventory account but not to freight account,
Whats the problem. Can someone explain me :
1)     What do I need to do to make it go to GL account ( account is set up but what is tax code related error . how do I fix that,
2)     How does unplanned delivery costs work if I have tax, discount and freight.
3)     Is tax calculated off total amount (inventory + freight) and discount too. How can I prevent that so that my tax is calculated just on inventory amount?
4)     DO I have to put total in amount field (meaning inventory amount + fright ) or not .
I will be grateful if someone can guide me towards right direction. Please give me a detailed answer. How does it work???
Thanks
Kavita Reddy

Hi,
1. If you eant ot post to a differnet GL account the GL tab is there.. there you have to mention the Gl account.. like Fb50.
2. When you put some amount in unplanend delivery cost ..
a. If material is Moving average price then the amount will be debited to inventory account
b. If material is in standard price then it eill go to price differnece account.
3. frieght vendor , discount why not u calculate through pricing schema in PO and after that in MIRP for firght vendor u will have different option..Just check with MM guys..
4.answered in point 1.
Hope it will helps ..
Assign point if helpful
regards
PK

Question on unplanned delivery costs need to go to GL account ????

Hello
I have a question regarding unplanned deliver costs. I am a FI analyst Can you please explain my how I can solve my problem . My user wants unplanned delivery costs to go in to the GL account .
In MM account determination GL account is set up but when I am doing MIRO
. I am putting total amount in amount field and freight costs in unplanned field under detail section.
When I simulate it gives me tax code related warning when I hit enter it credit vendor and debits GR/IR clearing and some debit to inventory account but not to freight account,
Whats the problem. Can someone explain me :
1)     What do I need to do to make it go to GL account ( account is set up but what is tax code related error . how do I fix that,
2)     How does unplanned delivery costs work if I have tax, discount and freight.
3)     Is tax calculated off total amount (inventory + freight) and discount too. How can I prevent that so that my tax is calculated just on inventory amount?
4)     DO I have to put total in amount field (meaning inventory amount + fright ) or not .
I will be grateful if someone can guide me towards right direction. Please give me a detailed answer. How does it work???
Thanks
Kavita Reddy

in standard setting the freight amount gets debit in the stock or inventoy account and gets credit in the fright accoutn at the time fo gr so it means the amount of frieght is gettting invenotrised
now at the time of IV IN MIRO SYSTEM CREDITS THE VENDOR ACCOUNT AND DEBITS THE GR/IR account
if u want to settele the planned delivery cost then select the laout variant for the planned delivery at item level
or in case if u want to make use of the unplanned delivery cost then u r doing the right step
but as u simulate the g/l accounts sytem will debit the inventory or stock account for it rather then frieght account (i belive so )
as the uplanned delivery cost may be getting inventorised that is added to the material price
and as u said u dont want to have tax calulated on the unplanned delivery cost then i suggest u to post it as subsequent debit and there do not make use of the claulate tax option or do the direct posting for the g/l account option

LE-TRA Shipment costs as inbound delivery costs, goods receipt

Hello gurus:
We are facing the following scenario, regarding inbound transportation.
We plan our shipment document and shipment costs, and they feature several items. Each of those items represent a shipping service, which in certain cases be taken on different countries by the same service agent.
That is, we have a service X on country A, with tax indicator 1, and service Y on country B, with tax indicator 2.
Both services would need to be transferred as delivery costs to the purchase order.
According to note 427944, shipment cost value is cumulated by service agent., so that it looks impossible to get the values broken up to the purchase order, which would be the first step to subsequently get the right tax indicators for each item of the shipment.
Even using different condition types on the shipment cost document, system cumulates by service agent and transfers to the first condition found on the purchase order schema.
Has any of you faced similar issue? Any workaround possible?.
Thanks in advance for your valuable help.
David Ramos.
PORCELANOSA MM.
This is the section of note 427944 that indicates the treatment of the shipment costs in the purchase order,
Transfer the shipment costs into the condition types of the purchase order:
The shipment cost value (without tax amounts) is cumulated for all relevant shipment cost documents
for each service agent and transferred to a corresponding condition type of the purchase order item.
Before cumulation, the amounts are first converted into the purchase order currency.
1. A transfer of the values for each condition type (similar to the transfer from a shipment
cost document to the SD billing document) is not supported.
2. If different service agents exist in the shipment cost documents, a corresponding number of
condition lines (with value 0) must be specified in the purchase order item. These can always
belong to the same condition type (in schema 'Manual') or also to different condition types (not
'Manual'):
a) Manual condition lines: If the condition type in the schema of the purchase order is
marked as 'manual', the condition type must be created (with value 0) in the purchase order
item before the goods receipt. If delivery costs are expected from different service agents,
several non-valuated entries must be generated for this condition type. If more condition
lines exist than required, these are then no longer taken into account. If condition lines
are missing, the last service agents are not settled.
- Advantage: You only have to define one condition type for the delivery costs.
- Disadvantage: Each purchase order must be processed manually before the goods receipt.
b) Automatic condition lines: If the condition lines are to be generated automatically for
the delivery costs (the condition type is not flagged as 'Manual' in the schema), the schema
must have enough condition types to settle several service agents. If more condition lines
exist than required, these are then no longer taken into account. If condition lines are
missing, the last service agents are not settled.
- Advantage: The goods receipt can be carried out without manual preparation beforehand in
the purchase order.
- Disadvantage: You must define identical condition types with different names.
Message was edited by: PORCELANOSA MM

Hi,
If you refereed the OSS Note 427944 correctly it explains how the shipment cost can be transferred to delivery cost based on some pre-requisite.
Like the value for PO should be >0
Like the service agent is involved during shipment liability, then there should be cumulative transfer for each value which will update based on shipment cost if PO value is "0".
The shipment cost will be delivered to all delivery items based on weight.
If you want to enhance this then you need to use the enhancement V54KSFRC to update the values as per your requirement.
Rgds,

Delivery cost in scheduling agreement having time dependent condition

Hi experts,
We have one peculiar requirement.
We have palnt at indonesia. We are doing import there from india.
Our requirement is as follows.
1. We should use scheduling agreement with time dependent conditions. Because we want to track the price changes and sometimes we want to retro pricing effect and revaluate it.
2. We want to add importers vat and import tax.
3. But those tax amount should not get added into inventory
4. During MIRO it should get accounted to vendor.
We could succeed this by removing "Time dependend condition" check in document type config.
But our client is definitely required the point no 1.
But when we activate time dependent condition check, during MIRO those conditions are not appearing. But if you remove that check, it is appearing in MIRO accounting.
Can any one suggest suitable solution?
Or SAP MIRO will not permit this scenario?
regards,
K.Sundaresan.

delivery cost will not work if u remove the tick Time dependend condition for SA
SAP MIRO will not permit this scenario
so u will have to decide what is more important to u and act accordingly
Solution will be u ask client what is mor imp for there company
as SAP will not support MIRO for deliver for time dependent condition
I had a talk with SAP on this and they have told that
SAP will not support MIRO for deliver for time dependent condition
AS in Case of imports in india we need to do MIRO before GR
hope this hel;sp

Delivery cost in PO

Hi,
I have create the PO account assigned to cost centre K and it has multiple account assignment.
The distribution is on the basis of quantity and in case of partial invoice it is to be distributed proportionally.
The pricing condition in PO are basic price and freight condition. When I am saving PO the sytem is giving following warning message:
No delivery costs can be posted in case of multiple account assignment
Message no. 06356.
I saved the PO and did GR.As it is multiple account assignment so GR will be non valuated hence no accounting document is generated.
When I am doing MIRO, I selected option goods/service+planned delivery cost.
System is not showing the delivery cost. My basic price was 100 and freight cost was 10 say as an example. In MIRO it is showing only 100 not the freight cost 10 though I have selected the goods/service+planned delivery cost.
When I am simulating the system is showing following warning message:
No delivery costs selected for invoice document
Message no. M8599
Diagnosis
No delivery costs were selected for the invoice document.
Procedure
If delivery costs are contained in the invoice, check that the allocation criteria and invoice type are correct.
Just to check further , in MIRO I selected only the planned delivery cost , then system is giving the following error message:
No delivery costs exist for purchase order 4500000596 00000
Message no. M8014
Diagnosis
You have chosen Delivery costs -> Planned -> By purchase order. This function allows you to process delivery costs which were planned in the puchase order. The purchase order which you are currently processing does not contain any planned delivery costs.
Procedure
Check the purchase order number. If it is correct, you can only post the delivery costs as unplanned delivery costs.
Please help how in the case of multiple account assigned PO we can post the delivery cost in MIRO?

Hello, Anju,
the systems does (well, in this case does not) exactly what is says: "No delivery costs can be posted in case of multiple account assignment".
So either you have to split the one items with multiple account assignment into more items with single account assignment, or you have to use unplanned delivery cost in invoice verification.
If you decide to use the unplanned cost, it can be helpful to activate the "Edit PO Supplement Text in Invoice Verification" function in customizing for LIV, so the buyer can write into defined text in PO "message" for invoicing clerk, that he/she agrees with certain amount of unplanned cost. I know, it's such lousy workaround...
Kind Regards
TomT

Third Party Order Delivery Costs(COGS in Purchasing)

Hello MM/SD Gurus,
We have a Scenario where in its a 3rd Party Order direct shipment Process where the Shipping is done by a Logistics Vendor!
So->PR>PO>Inbound Del->GR->IR>Goods Issue-->Customer Invoice.
Now the Issue we have is Delivery Costs(Freight,Insurance,Duty etc) raised by Logistics vendor are taken as estimated costs during the PO creation with appropriate Condition Types but when at the end of the Month when Actual bill is sent the Prices are to be settled and paid back!!
2)Assuming vendor invoice of $100 and Freight invoice of $10. The accounting entries aare as follows:
Vendor 100-
GIT(Goods in Transit) 100
Fright Forwarder 10-
GIT 10
Since the Stock is Non Valuated here how can Account postings from PO/GR is shown for COGS in SAP.
Understood that COGS is hit when Goods Issue(GI) is done but our need is to account COGS in Purchasing.
Can anybody throw some idea of how to Capture the COGS in PO and post then individually with different G/L accts for Freight,Insurance etc.
Full points guaranteed heheheh! Pls help me with your expert suggestions.
Regards,
Hari'
Singapore

Hi Suraj,
Thankx for your reply and sorry for my delayed reply.
Well your answer is too immature for me to apply since I have already done all those and surpassed those things.
Well to make my question simple I need to account Delivery Costs(Freight,Insurance etc) during GR.Although I have setup all the COnd types in PO Pricing.Now I need to know since GR is Statistical and Goods are in Transit can I account the Delivery Costs into seperate G/L acounts??
It would be great if any of the Forum ppl have already setup capturing of the Delivery Costs in PURCHASING and accounting them into Sepate a/c's. I feel this is Common Scenario in most of the Mfg Org. So knowledge transfer is higly appreciated!!
Rgds,
Hari

Delivery Cost non-inventory

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