Frieght cost in PO

Hi All,
Please help to understand the different methods of using frieght cost for PO and it acc entries.
Kindly explain different scenarios and prerequisites of it.
Thanks in advance.
Regards,
Sandhya

Hi,
Freight Cost may be inventoried or can be capture to separate G/L account .
Prerequisites for Freight Cost can be added to inventoried:
If you want freight amount to be captured & added to inventory, then just check your calculation schema in M/08 & check your freight condition type and see No account key & accrual key are assigned{Keep BLANK}.In t.code M/06, go to details & do not select accrual flag in control data 2 TAB & keep BLANK in condition category in control data 1 segment & save.
Now do MIGO , you will freight cost added to inventory cost and entries will be
Stock A/C: Dr
GR/IR Clearing: Cr
Prerequisites for Freight Cost can posted to separate G/L account called Freight G/L account:
If want freight to be captured in a separateG/L account, then just check your calculation schema in M/08 & check your freight condition type and see account key & accrual key are there ( say example account key FRE and accrual key FR1)
Now use t.code M/06, select freight condition type,go to details & select accrual flag in control data 2 TAB & keep B in condition category in contorl data 1 segment save.Again in OBYC , just assign FRE account key with your freight G/L account with your chart of account,valuation class & valuation modifier & save.
Now do MIGO , you will have separate G/L entry for freight and not added to inventory & account entry will be
Stock A/C: Dr
GR/IR Clearing: Cr
Freight Clearing: Cr
Regards,
Biju K

Similar Messages

  • How frieght cost can be incorporated in the price of the material ?

    Hi Friends,
    Requirement is frieght cost should be incorporated in the price of the material .How this should be configured  'Sales Order value greater than equal to 15000,then frieght cost is free '.
    If it is less than 15000,frieght cost levied.How to calculate freight cost?
    One way we found is adding new requirement type or alternate calculation type in the pricing procedure.How far is it correct?My approach is correct or not.
    Some customers picks up the mateials from the warehouse itself.The sales commission caluculation will be different for this kind of orders. How to identify pick up orders without configuring new order type??How to calculate sales commission for these kind of orders?
    Our client is not interested to configure seperate order type.
    Can any body have ideas ,how best can be approached for  this?
    Thanks in advance...VM
    Edited by: vm on Mar 10, 2009 7:48 PM

    Hi VM,
    In the new conidition type created by you for frieght cost you need to make use of scales to maintain pricing based on the quantity.
    Firstly make sure that you have made Calculation Type as 'C' in control data for this condition type.
    Then in VK11 create a new condition record. Click on sclaes for this condition record and maintain the minimum frieght charge that you need to apply based on the order quantity.
    eg: Lets consider the example given by you. For all orders less than 15000 units you need to apply freight charge of 100 USD. So in sclaes you will enter values as follows
    Scale Quantity.........UOM........Rate.........Unit...........Per...........UoM
    .................................GA..........     10............USD.........1...............GA
    15,000.............................................................................................
    Now if an order is created for 15000 GA based on sclaes no rate will be applied. But if an order is created for qty less than 15000 GA a rate of 10 USD per GA will be applied.
    Hope this helps.
    Regards,
    Sajith.

  • How to use frieght cost in intra company STO

    how to use frieght cost in intra company STO

    For Inter company STO, pls follow the below steps.
    1) Create delivering plant as vendor in receiving plant’s company code & sales area – XK01
    2) From the vendor number created in step 1, create Vendor info record for the material that needs to be stock transferred.
    3) Ensure material is extended to both plants
    4) Delivering plant must be assigned to the receiving sales organization
    5) In the Vendor info record, go to MK03 and change the “add purchasing data” to delivering plant.
    6) Create receiving plant as customer in delivering plant’s company code & sales area.
    7) Ensure Purchase organization for the receiving plant is maintained
    8) Go to IMG- Materials Management-Purchasing-Purchase Order-Set up stock transport order ( transaction code:OMGN) and complete all the settings.
    Note:
    Maintain receiving plant / customer number from step 6/ delivering sales area
    Delivering plant/ customer number from step 6/ receiving sales area
    Maintain NLCC replenishment for cross company stock transfer with delivery type NB
    9) ME25- Create Purchase Order from receiving plant
    10) VL10B - Create delivery order from delivering plant’s shipping point with reference to the purchase order number raised in step 9.
    Save.
    11) Go to VL02n & pick /post goods issue for the delivery order number created in step 10
    12) Do VF01 & bill to customer
    In step 8 You have the option of UB type in place of NB
    In step 10 you can also use VL04.
    In step 12 you select F8 type (pro-forma invoice).
    Reward if useful.
    raaj

  • How to consider the frieght cost

    Hi All,
    I want to add my transportation cost (frieght cost) for the PO. Can you please explain different ways to do this.
    Thanks in advance!
    Thanks,
    Jana

    Adding to other replies,do subsequent debit for frieght cost or else you can enter it in unplanned delivery cost for this
    configure it in SPRO > MM>LIV--->Incoming invoice --->How to configure unplanned delivery cost,
    here you have two options 1.Unplanned del. costs to seperate gl accts. 2. Distribute unpl. del. costs to all line items in miro,It all
    depends how your customer/client wants it.

  • Fixed frieght cost with each GR

    Hi ,
    We want to use standard pricing functionality to simulate fixed freight cost during a GR. Let me explain this using an example.
    Suppose I have a two materials in my PO, and I have a group condition at header level for freight amounting to Rs 300.
    Material   ||    Quantity ||           Price  ||    Apportioned freight amount
    Mat 1              100                 1000                  100
    Mat 2              100                 2000                  200
    In standard system,  based on the GR quantity the system will apportion the freight value . In our case we want to always pay the same amount of Rs 300 for each consignment. This value is irrespective of the quantity which we are planning to receive. If we receive a GR for both the items then the system should also apportion the freight values.
    I know we can use shipment costing route to simulate this kind of functionality, but we don't want to use it.
    I would like to know if any one has faced a similar problem and how have they gone about solutioning the same.
    Regards
    Gunjan

    Hello Gunjan Kumar,
    You can create new <b>item condition type</b> for fix frieght charges which will be manual amount. Insert this condition type at the time of creating purchase order and put amount manually as per your wish for each item in purchase order.
    Hope this helps.
    Arif Mansuri
    Reward if answer is helpful.

  • Invoice Verification - Issue/ Documents Posted to Dummy PC ( Frieght Cost)

    HI friends,
    I was observed that Users are posting the freight for indirect PO directly to Freight GL, it goes to Dummy Profit Center. The actual process is Freight cost which is not captured in PO & is with Invoice has to enter in unplanned delivery cost.
    Is it correct
    Venkat

    Ideally, you could plant for a freight amount and create a accrual condition type for freight and plan for materials through MEK1. This will automatically post the freight during goods receipt and post the credit to the accrual account, where you can book the actual freight amount from vendors. This will also help you get a correct PPV.

  • Frieght Cost In STO for Intracompany

    Hi ,
    We want a stock transport order to shift material from one plant to other plant within a company and want to book the freight cost  while receiving the same material at receiving plant .The condition tab is deactivated for posting a sto.and  how to define the freight vendor?.above it no accounting document gets generated by the system while doing GR.
    The prompt response for the same will be highly appreciated please.
    Regards,

    Hi Chandra,
    The Conditions tab will not suppress in the Item details if you create the STO Intra company.The Invoice tab will suppress.
    I think you have not assigned the Schema group for Purchase Organization to your Stock transport order Pricing Procedure RM2000
    First Create the Schema group for Your purchase organization then assign this Schema group for Pur org to your STO Pricing procedure automatically the Conditions tab will displayed in the item details.
    Then you can add the freight value in the conditions tab which will solve your problem.
    If you still find the problem,reply on the same.
    rgds
    Chidanand

  • Frieght cost should not loaded on inventory

    Dear SAPERS,
    We have one scenario that, fright charges should not loaded on Inventory account for that material (means fright cost should not added to material price when price control is MAP)
    I have copied standard FRC1 conditions and added in my pricing procedure and static is marked, in condition accruals also marked.
    Account key FRE and Accruals FR1 is given and G/L accounts maintained OBYC for TE keys also, but fright cost is loading to inventory.
    Pricing procedure:
    15     0     FRB1     Freight (Value)     1                                      FRE     FR1
    16     0     ZFB1     Freight (Value) ACME     1                                 FRE     FR1
    17     0     FRC1     Freight/Quantity     1                                      FRE     FR1
    18     0     ZFC1     Freight/Quty ACME     1                                      FRE     FR1
    Account entries at MIGO
    ACME     1     89          131000     Inventory - Raw Mat     119.20     USD     
    ACME     2     96          211200     Goods Received /Invo     109.20-     USD     
    ACME     3     50          217300     Freight Clearing Acc     10.00-     USD     G/L account assign to FR1 in OBYC
    G/L account 217301 is assigned to FRE in OBYC, but no account entries coming here the fright and materials cost is loading to Inventory account 131000.
    Please suggest how to post fright cost to FRE account.
    Thanks in advance,
    Venkat
    Edited by: Venkat.mm.sap on Mar 15, 2011 2:13 PM

    hi sap gurus,
    very late to reply..but, below is the solution for NON-INVENTORIED FREIGHT CONDTION in MM pricing condition :
    OPTION  1 :
               >>  copy FRA1 std cond to new cond.
               >>  Put condition category - Blank & tick mark accrual.
               >>  Add new cond in pricing procedure. Do not put accrual in pricing proc.
    OPTION  2 :
               >>  copy FRA1 std cond to new cond.
               >>  Put condition category – B & do not tick mark accrual
               >>  Add new cond in pricing procedure & tick mark statistical (Accruals-can/can not be put. No effect)
              >>  You can add Freight vendor in PO as condition category is B
    pls try this & reply.
    Regds,
    nilesh

  • Fixed Value condition type for Frieght cost

    The condition type 'ZFCK' for Freight (Delivery cost) is configured as Fixed value type. Suppose if we release a PO with a material qty of 1000tons with the Delivery cost as $500 value and the vendor supplies only 500tons of material, during MIGO posting, the delivery cost is becoming pro-rated to $250. The delivery cost has to be maintained fixed irrespective of GR qty. How can we achieve this? I didn't find any proper BADI/USer exits for MIGO transaction to modify this value at the time of GR.
    Is there any other way we can update this value to fixed value during IR posting using BADI/User-exits. The Invoice posting is done through an automated process using MIRO.
    Any suggestion for the above issue is highly appreciated.
    Thanks
    Usha

    Hi,
    below are the standard condition types used for freight.  Check in transaction M/06.
    FRA1     Freight %
    FRA2     Freight %
    FRB1     Freight (Value)
    FRB2     Freight (Value)
    FRC1     Freight/Quantity
    FRC2     Freight/Quantity
    Regards
    Seema.

  • Capturing the frieght from service PO to Create cost shipping document

    Dear friends,
    We have got the service agreement with the transporters for transporting materials to our company.
    I created a Service contract. Then i release the Purchase order against the Contarct for the distance he transported. And i do service entry sheet against PO.
    Now material is transported by Transporter. When the material is received at the Gate, a Frieght liability for the transporter shall be created at entry of the Gate itself.
    I tried as below.
    Material PO.
    -Inbound deliveryVL31N.
    ---Create shipping document ---VT01N,
    Complete the Shipping documentVT02N,
    -Create shipment cost documentVi01
    In VI01--fields like PO and service entry sheet are available.(But these are in dispaly mode)
    My problem is that How to link the Service sheet or service PO to these VI01, so that frieght cost of service entry sheet is captured. Asper disatnce transported by transporter, based on agreed price is in contract and released PO/Service entry sheet shall be captured in VI01 so that frieght liability for the transporter can be created.
    How to do this. pl.suggest.
    Regards,
    Ram

    i think you need to:
    1 find out a/c grouping code for your transaction.
    2. then assign g/l a/c to that transaction;s valuation class
    3. you need create pr or po material under that valuation class.

  • Delivery costs on Goods Receipt

    I have a client requirement for delivery costs on a Goods Receipt.  They use large on-going PO's and do partial GR's on them for years.  The PO's are based on outline agreements and the pricing (including the delivery cost) comes from the outline agreement.
    They want to have a flat rate delivery cost on every GR done on that PO.  I have configured a new condition type (ZRB1), copied from FRB1 and have played around with many of the settings.  No matter what I do, it still wants to prorate the delivery. 
    A developer looked at the Goods Receipt transactions and there does not appear to be any user exists where we can override the delivery cost calculation. 
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    Has anyone had a similar requirement and successfully implemented a solution?

    Hi,
    What is the objective for such inclusion of freight in GR.
    Whether material is valuated at standard cost or MAV. If moving avg. price then u can add the frieght cost while doing MIRO also per deliver note.
    Regards
    Prabhat

  • Frieght Incurred at the time of Good reciept but accounted separately in FI

    Hi,
    <b>I have the following scenario. Can you please through some light on this:</b>
    We have received raw material from vendor and accounted.
    I have also incurred Frieght and accounted only in FI.
    It has not come from either MIGO or MIRO.
    But we want to include these frieght costs in product costing.
    How to include these frieght costs in product costing in case of make to stock scenario.
    Regards,
    Haribabu

    Hi Hari
    As a general accting principles, freight should be part of inventory.  Moreover i dont see a possibility to include the freight cost booked separately in PC.
    thanks
    ashok
    assign points for useful suggestion

  • FREIGHT COST TO BE ADDED TO MATERIAL VALUE FOR PRICE CONTROL"S"

    hi,
    How to add the frieght cost to  material cost for the materials with "S" price control While doing MIGO ?
    Edited by: ARITRA MUKHERJEE on Mar 3, 2010 5:07 PM

    Hi
    By stating Price control Indicator  S ,it means that you are valuating your inventory at a standard or Fixed price (As maintainred in the Material master ).Hence your Inventory will be valuated at the standard price no matter what additional expenses you incur
    Regards
    Sandeep

  • How to split Frieght Amount in Purchase Order Document.

    Dear Expert,
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    1. Packing & forward.--500 (Frieght cod is 5)
    2. Transport -
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    Thanks
    Arunraj.

    Hi
    Use POR2 Table in your PLD. Use this in repetative area field and hide the fields visible. use formula to display in other non-repetative field.
    Regards,
    Sudhir B.

  • Table that stores the acurred PO line item freight costs

    Hi there,
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    Thanks

    What are you trying to get. Accrued cost can be taken from the GL account directly, which may have PO reference.
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