Freight costs per PO

Hi gurus,
is it possible to automatically determine freight costs on header level of a PO?
I can enter freight costs on item level (condition types FRA1, FRB1 etc.) and create condition records for them in info records.
But on header level, none of the condition types mentioned above is allowed. Am I missing something or do I have to create new condition types (similar to ZB00) to be able to enter freight costs on header level (e.g. 100$ per PO, regardless how many items it contains)?
I would also like to create condition records for those freight costs for each vendor.
Thank you
Alicia

Hi,
You can mark the existing freight conditions as "Header condition" in M/06 and also active the "Group Condition" indicator to distribute it proportionately among the PO line items.
Also you can assign the access sequence of Vendor (Standard is 0006) and maintain condition record in MEK1.
All the above changes can be done in a new condition type also by copying the standard one if you don't want to hamper SAP standard settings.

Similar Messages

Freight Cost Per Kilometer

Dear All,
Plz give me some idea about how to calculate and determine freight cost per kilometer in shipping cost document.
Thanks & Regards,
PM

You should be able to achieve this by making use of the route determination functionlity in LE (logistics execution).
When you define a route and its different stages (if applicable) you can assign a predetermined distance that is measure in KM.
In pricing determination you then use a condition type for freight that is distance dependant or simply with calculation type = quantity . You may create an access sequence that reads the distance from the route in the document to derive the rate per km for that route which you would have maintained in the condition records.

Freight costs per KG when PO order is in PC, how to solve?

Hi,
My client want to make use of a condition type in the purchase calculation sheet which covers the freight costs per KG. The case is that we also order per PC. How to solve this problem? Which condition type can I use for freight costs per kg?
Thank you in advance,
Eric van Zundert.

Hi,
Which condition type can I use in the PO for this purpose?
Thank you all,
Regards,
Eric van Zundert

Freight cost per meter (load lenght)

Dear All,
I try to define shipping cost calculation by length(in meter) in a transportation project
I have managed a condition type (multi-dimentional) with calculation base 'C : Handling Units'
2 scales, one for the transportation zone destination and another one for the length of loading for this condtion type
1 condition record
The deliveries are packed (HUM), all the dimensions are managed in the material records.
There is no packaging in the shipment document, only in the delivery.
The shipment cost find the condtion record, but set the condition value to zero, because in the scale the condition base value is set to zero.
It seems that there is no conversion in meter for the entry.
Not sure to be really clear, but ask me if you want more explanation.
Need your help, I don't know any more where looking for
Thanks in advance
Stephane

answered

Tracking freight cost shipment to shipment

Hi ;
how to track the freight cost for shipment to shipment while creating the inbound delivery transaction . is there any report represent the freight cost per shipment(inbound delivery).
Regards

Hi,
Check VI11, VI12
Thanks & Regards,

Reducing the Freight cost on material value for undelivered material

Hi Experts,
Summary : The material supplier vendor needs to be paid for full quantity of material. The freight transport is allowed an under tolearance of 0.5% on the material to be supplied. If the delivered material quantity breaches the 0.5% under tolerance then amount at 1.5 times the cost of material for the shortage is to be deducted from the transporter. A dummy GR will have to be prepared for the undelivered quantity for which we do not want the freight cost to be loaded. The details scenario is mentioned below :-
We have to make a Purchase Order with material code say ABC for procured of some material. Suppose we make a Purchase Order for 100 nos. at a Unit Price of Say Rs. 10/- for Material Code ABC on say Vendor M/s XYZ. A freight condition is maintained in the Conditions Tab and suppose the Freight is Rs. 10 per unit of the material.
While preparing the Goods Receipt through MIGO, in the Freight Tab we select say freight vendor say M/s PQR against the freight condition and post the goods receipt.
While doing Invoice Processing in MIRO, when we enter the combination of Purchase Order and Planned Delivery Cost the system will populate the vendor codes of both the supplier of material and the transporter. On selecting the transporter the freight amount will populate against which the invoice of the tranporter can be processed.
In the Vendor Master of M/s XYZ GR-Based Invoice Verification is activated.
The vendor is allowed an under tolerance of 0.5% (i.e. the vendor should deliver at least 99.50 nos. of the Purchase Order). If the vendor delivers 99.50 or more then there will be no deduction in the freight charges.
But suppose the vendor delivers only 99.4 nos. of the quantity. Then we will prepare the GRIR for 99.4 nos.only. But while processing the MIRO we need to deduct 1.5 times the value of the material from the freight amount for the shortshipped quantity, i.e.
0.1 no (99.5 u2013 99.4) X Rs. 10/- * 1.5 = Rs. 1.5 are to be deducted from the final payment from the freight amount of the transporter.
The material supplier will have to be paid in full 100 nos. of quantity and will raise an invoice for 100 nos. A dummy GRIR for the 0.6 nos. of undelivered material will have to be prepared for processing the invoice for the 100 nos. of the material supplier and a dummy issue for 0.6 nos. of undelivered material will be prepared to remove them from the system.
Hence the freight cost for this 0.6 nos. of undelivered material will also go into the cost of the material and increase the MAP by that amount. Also the goods issue Cost will also have the effect of the freight cost.
We do not want to load the freight cost for the undelivered material in the value of the material.
Can any one please suggest a solution for the same.
Thanks in advance.
AJ.

Hi
A PO Will be raised for full quantity of material say 100 nos.
The material supplier vendor needs to be paid for full quantity of material.
A freight vendor is maintained at the time of GR for material against the freight condition maintained in the Po.
The freight vendor facilitates the delivery of the material from the vendor to the purchaser for which he is given an under tolerance limit of 0.5%. Any delivery below this tolerance limit, freight amount to the effect of 1.5 times the per unit rate of material x short fall below 0.5% tolerance will be deducted from the freight amount.
A dummy grir will have to be prepared for the short delivered quantity for processing the invoice for the full quantity of the purchase order, as the vendor is going to raise the invoice for full purchase order quantity. The client does not want to load the freight cost of the undelivered quantity on the material value as it will wrongly show the MAP of the material. This shortshipped material will be issued to remove it from the system and the stock will remain for the delivered quantity only. The vendor is subject to gr based invoice verification.
Please suggest a solution.
Thanks in advance.
AJ
The freight transport is allowed an under tolearance of 0.5% on the material to be supplied. If the delivered material quantity breaches the 0.5% under tolerance then amount at 1.5 times the cost of material for the shortage is to be deducted from the transporter. A dummy GR will have to be prepared for the undelivered quantity for which we do not want the freight cost to be loaded.

Reducing freight cost for undelivered material

Hi Experts,
Summary : The material supplier vendor needs to be paid for full quantity of material. The freight transport is allowed an under tolearance of 0.5% on the material to be supplied. If the delivered material quantity breaches the 0.5% under tolerance then amount at 1.5 times the cost of material for the shortage is to be deducted from the transporter. A dummy GR will have to be prepared for the undelivered quantity for which we do not want the freight cost to be loaded. The details scenario is mentioned below :-
We have to make a Purchase Order with material code say ABC for procured of some material. Suppose we make a Purchase Order for 100 nos. at a Unit Price of Say Rs. 10/- for Material Code ABC on say Vendor M/s XYZ. A freight condition is maintained in the Conditions Tab and suppose the Freight is Rs. 10 per unit of the material.
While preparing the Goods Receipt through MIGO, in the Freight Tab we select say freight vendor say M/s PQR against the freight condition and post the goods receipt.
While doing Invoice Processing in MIRO, when we enter the combination of Purchase Order and Planned Delivery Cost the system will populate the vendor codes of both the supplier of material and the transporter. On selecting the transporter the freight amount will populate against which the invoice of the tranporter can be processed.
In the Vendor Master of M/s XYZ GR-Based Invoice Verification is activated.
The vendor is allowed an under tolerance of 0.5% (i.e. the vendor should deliver at least 99.50 nos. of the Purchase Order). If the vendor delivers 99.50 or more then there will be no deduction in the freight charges.
But suppose the vendor delivers only 99.4 nos. of the quantity. Then we will prepare the GRIR for 99.4 nos.only. But while processing the MIRO we need to deduct 1.5 times the value of the material from the freight amount for the shortshipped quantity, i.e.
0.1 no (99.5 u2013 99.4) X Rs. 10/- * 1.5 = Rs. 1.5 are to be deducted from the final payment from the freight amount of the transporter.
The material supplier will have to be paid in full 100 nos. of quantity and will raise an invoice for 100 nos. A dummy GRIR for the 0.6 nos. of undelivered material will have to be prepared for processing the invoice for the 100 nos. of the material supplier and a dummy issue for 0.6 nos. of undelivered material will be prepared to remove them from the system.
Hence the freight cost for this 0.6 nos. of undelivered material will also go into the cost of the material and increase the MAP by that amount. Also the goods issue Cost will also have the effect of the freight cost.
We do not want to load the freight cost for the undelivered material in the value of the material.
Can any one please suggest a solution for the same.
Thanks in advance.
AJ.

answered

Inbound Logistics: What are the best options to capture freight costs?

We attempted to implement a freight payables solution which was built on Inbound Deliveries> Inbound Shipments> Inbound Shipment Cost Documents. The PO line items were flagged with a conf.control key which made the above inbound documents relevant.
Very long story short, we had to remove this functionality because of two major issues:
1.     The Inbound Deliveries were created with incorrect quantities some of the time. When the Inbound Deliveries were created with incorrect quantity those errors caused major problems (e.g., over accrual of freight cost to the tune of several millions of dollars!!!).
2.     Also, when the Inbound Deliveries were created with incorrect quantity MRP went berserk (e.g., when the IB delivery has the wrong quantity that shows up in MD04 and the planners are left scratching their heads wondering why the supplier is shipping so much or so little).
I wonu2019t get into the details of how the Inbound Deliveries were being created but suffice to say they were manually entered by the supplier without the benefit of an EDI transaction- it was more of a manual entry- hence the data accuracy problem.
The point of this post is to gain feedback from other customers who have implemented an inbound freight payables solution with success & understand what processes were used to make your project successful.
For example, if I had a u201Cwish listu201D Iu2019d request the following:
1.     The IB delivery document type Iu2019d like to use should be non-MRP relevant. This will eliminate the confusion that occurred when planners run MD04 and see all of the shipment notifications. Also, if the MIGO_GR transaction is used to receive the POu2019s, they will see the quantities on the PO, not on the IB delivery. This would be good for us from a business continuity stand point. However, if the IB delivery is not MRP relevant, than your GR does not accrue the freight cost defined on the SCD which short circuits the entire point of having these documents.
u2022     Q: Have you had any success implementing an IB freight solution with minimum impact to planning / inventory / operations?
2.     As mentioned above, the data accuracy of the IB delivery was problematic. Because of this issue we have changed our thinking so that we would require a EDI ASN to be sent from our supplier to our SAP system. Using EDI we feel that greater accuracy would be obtained since the quantities defined would map to what is being picked or at least aligned with what we would expect to be invoiced for. The problem is we donu2019t know how EDI capable our suppliers are.
u2022     Q: Has anyone had success implementing this with your suppliers on a large scale?
3.     Are there other inbound freight payment solutions that Iu2019m not thinking about u2013 custom or other that you have implemented & can share some of the specifics about? Iu2019d enjoy hearing about them. Since we are re-thinking what we implemented Iu2019m open to any suggestions.
Thanks so much for your time!
Rich Wortmann

Chandra,
Thank you for your reply. I'm aware of the freight condition approach you suggest & the ability to define the carrier in the freight condition.
We explored this functionality in the past. The problem/limitations we've experienced were as follows:
1. Essentially you have to know your freight cost & the carrier by PO line item at the time the PO is created. Both of these variables we typically cannot predict in our environment.
2. We have a lot of situations where the PO is considered a u201Cblanketu201D where it will remain open for a month up to a year. Knowing the entire freight cost for these PO's once they are created is impossible to predict so to support the freight conditions we would have to change our business process which would be a big effort for our organization.
3. Our suppliers ship product based on multiple PO's / PO lines, again it is impossible to predict what the per unit freight cost would be at the time a PO is generated.
These factors are what led us to the IB delivery solution which handles each one of these scenarios quite well provided you have good data when the IB delivery is created.
Regarding your second post: Thanks! This information is helpful.
Sincerely,
Rich Wortmann

Service PO with Freight Cost

Hi Experts,
Please let me know the possible solution for the below scenario:
We have created a Service PO (no service master data), service cost per qty is 5000 and freight cost is Rs. 500 (entered in the condition type).
Ex. Sending a Roll for clean and coating to the service vendor.
Once we received the serviced material we accept it in ML81M. Here the problem is only Service cost will come when service entry sheet accepted, could let me know how to arrive the freight cost also at service acceptance or any other method to do the same.
YJ

Hi,
this is not possible,you have to create separate line item for same,
check foolwoing SAP Note:
Hi,
Delivery cost not suppostr in service entree sheet
SAP Note 381030 - Delivery costs in service
Symptom
When you reset the acceptance of services performed and when you reverse invoices for service orders, the delivery costs are not posted back 1:1.
Other terms
ML81N, reversal, freight, freight costs, delivery costs, service.
Solution
Delivery costs are generally not supported in external services management and in case of blanket purchase orders, item category D or B. Instead of representing delivery costs via conditions, in case of service documents, freight costs and other, SAP recommends to add in additional service lines.
Regards
Kailas ugale

Report on Shipment/Freight Costs

Dear Forum,
We are following the process whereby the Shipment/Freight costs are included in the POs as conditions. At the time of Goods Receipt, as per the standard procedure, the Shipment/Freight Costs are loaded on to the materal costs of the Inventories received. Now there is a requirement to monitor the Shipment/Freight Costs and a report is required to be generated which would give the material costs as well as the Shipment/Freight costs. How can we generate the same?
Your help would be highly appreciated.
Regards

>
raj n wrote:
> Dear Forum,
>
> We are following the process whereby the Shipment/Freight costs are included in the POs as conditions. At the time of Goods Receipt, as per the standard procedure, the Shipment/Freight Costs are loaded on to the materal costs of the Inventories received. Now there is a requirement to monitor the Shipment/Freight Costs and a report is required to be generated which would give the material costs as well as the Shipment/Freight costs. How can we generate the same?
>
> Your help would be highly appreciated.
>
> Regards
You can use MB51(Amount in LC,101 mvmt type) for material cost.
Find shipment / freight cost using FBL3N report for required g/l account.

MM Planned Freight Costs with

Dear friend
Does anyone could guide me to setting up the freight costs by condition FRB1 to ECC put the value of condition as part of costs of material !
Could you explain the behavior of MIRO(Accounting posting) with main item together with planned freight costs !
We need to understand how the SAP input the freight costs into the main item.
best regards,
Ale

Hi Aless,
U have to inventorise freight condition
This can be done by assigning accrual key in m/06
in condition mark tick as accrual..
Other than the Basic price all other condition types can be inventories. for this u have to do the following. at M/08 ( Pricing Procedure) You have to Flag Statistical Indicator(S) and you should give appropriate Account key and Accurals key( exampl FR1, FRE for Freight) and at M/06( condition type) for particular condition type u have to Flag Accurals an control data 2. If u do all the 4 then any condition type can be inventorised as per the business requiredment.

Tracking freight costs by customer - options?

I have had a request as to how to track profitability by customer. This is to include freight. The freight price to the customer is included in the material unit prices, but the costs are billed separately. Currently there is no link (other than via cost centre booked on Purchase Invoice) between the cost of the freight and the income.
I would like to know what options there are available to link freight costs to a customer, sales order or sales contract.
ECC modules: MM, SD, FI, CO, HRM, BW

Ok, thanks for your reply.
But the problem is that all costs item categories have the same configuration, all are availabe to create PO per month. So I don´t know why many PO are created, what logic SAP is using to create many PO to the same vendor.
Can you explain me that ? Or it would be a MM issue ?
Thanks a lot.
Renato

Shpmnt Freight Cost varies(extra/short material)

Hello,
We have recently implemented Shipment freight cost for Inbound Shipments. Shipment cost is calulated based on weight.
The issue we are facing is:
If In an Inbd/delivery there are two HU and each having 100 cartons(total shipment 200 cartons) and weight is 1000Kg per HU, so assmue total cost of the entire shipment (two HUs) is 2000 USD.
Shipment cost document is created and enter the cost as 2000 USD for entire shipment.
Now While PGR for first HU (inbound delivery) we found that qty is 110 car inplace of 100 cartons,
System calculate the Freight cost as 1100 USD and while PGR of the 2nd HU(inbound delivery) we found the correct qty 100 cartons and system calculate the freight cost as 1000 USD.
The problem is actual shipment cost is 2000 USD whereas system is calculating 2100 USD.....
Has anybody this issue earlier, please share your experience....
Regards,
JPS

Hi Michela,
This is possible by adding one more condition type with blank condition category and negative value in plus/minus field.
please refer the following wiki which gives step by step configuration.
Appreciate if it is useful
http://wiki.sdn.sap.com/wiki/display/ERPLO/PostingplanneddeliverycosttoNon-inventoryaccount
Edited by: Raja Ramasamy on Apr 14, 2010 7:20 PM

Manufacturing cost per unit

Hi.. Experts.
My client is in producing Perfumes (Process manufacturing- chemical Industry) and Production wants to know the cost of per unit manufactured in the plant/plants and explains this in form of the following points.
To arrive at manufacturing cost per unit we need to know
1) Per Unit cost of materials inclusive of transport (Raw & packaging material)
2) Conversion cost per unit which will include
a) Energy & other utilities expenses
b) Labor cost per unit (days wages of all in production / units produced)
c) Cost of quality--- including testing outside and chemicals used for testing in plant plus salary per day of people engaged in testing in q.c department.
d) Cost of administration-- employees engaged as well as office expenses like telephone,transport
Please consult me how to configure the above requirements in sap business one.
Regards
Rakhi

hi raakshit
The first point is where would u like to capture these records if its at the time of production order the it is easy
u can create UDF for all related items u have mentioned and fill the value manually and then in the production order either u can write the value manually or u can run A FMS which will sum up all the value and also the value of BoM ITEMS and would reflect in the total field
or if u wana add it in teh sales order i.e u want to show it at the time of sales then u can add all the items in the freight setup
Hope this would suffice your concern.
Regards,
Manish
Edited by: manish.malik on Jul 22, 2010 2:35 PM

Shipment cost per ton

HI,
My user requirement is to see shipment cost per ton at present we are using shipment cost as total amount for the shipment
How to achieve this what are the settings we have to do in condition background.
Your reply is most valuable
Regards,
MH

Dear Mohammed,
What is the unit of measure for the material? is it TON? Are you maintaining the weight at the sales order level?
if you are using the UOM as ton then u can change the freight condition type to quantity from Fixed amount. This will solve the issue.
If you are using a different UOM for sales and weight is maintained at the sales order or delivery level then change the frieght condition type from fixed amount to weight or use any condition type which calculates based on the weight.
Fized amount is normally at the shipment cost item level and Ton should always be at the delivery item level. So change the shipment item category on how exactly the cost needs to be distributed.
Please revert for any further clarification.
Thanks and Regards,
Pavan P.

Freight costs per PO

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