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

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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

Freight cost to be included in the Raw material cost while creating VL31N

Hi all,
We are purchasing raw material from other country. we are paying freight for the imported material.
My requirement is, when doing inbound delivery freight cost has to be included in the raw material cost.
Now its not getting included in the raw material cost.
What are all the necessary steps to be done to include the freight cost into the raw material?
Thanks in advance,
Babu

Hi,
You can create dummy material inmaterial master record.
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Br,
Tushar Patankar

Post freight cost in diff. G/L of the material cost Accnt Cat. E

Hi MM experts,
I created a PO in reference to Sales Order (account assignment E-Trading materials)
In condition I added a custom condizion for freight (SPRO Cond.category B, flag on accruals).
When I received material the freight cost was added in total stock valuation.
Account    Account short text             Amount Trs
174020     STOCK M VENT DIR                 576,03     BSX
319500     FACT/REC                                 476,03-    WRX
171090     Cte pass.stock march               476,03     EIN
171090     Cte pass.stock march               576,03-    EKG
422000     TRANSPORT                             100,00-    Z03
319500     FACT/REC                          100,00     ZMA
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I expect that the result is as follows:
174020     STOCK M VENT DIR                  476,03     BSX
319500     FACT/REC                                 476,03-    WRX
422000     TRANSPORT                             100,00-    Z03
319500     FACT/REC                                 100,00     ZMA
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Thank you very much.
Regards,
Michela

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

Stock Transfer Order - Post freight cost in diff. G/L of the material cost

Hi Friends,
I created PO (stock transfer Plant to plant). In condition I added
standard price and Freight cost. When I received material in
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Edgardo Delgado

Hi
Futher to Imdarpan statement, normally we will have different pricing procedure for STO's for the reason you are mentioning with this procedure for freight you can define acct key & accrual if reqed seperately & while posting respective documents it will not go to material cost it will get accounted in different G/L account.
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Free goods but want to freight cost updation upon GR

Hi,
Scenario:
I have a PO with 20 line items and header freight cost.
There are few more items in PO which are ticked as free goods.
There is a stock of those materials with certain MAP.
Freight condition has been configured as vendor GR so that it gets loaded on materials upon GR.
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Upon GR of this PO,MAPshould get updated with the freight cost for those materials also which have been marked as free goods.
How this can be achieved ?
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manOO

Hi Rang,
Thanks for the feedback.However service PO is out of scope as client do not want to go for servicees.
I could not understand your suggestion
<u>you give PO to frieght vendor for freight value & in remarks you mention reciving as FREE GOODS from vendor xxxxx & do GR load cost to material & pay to freight vendor. (this is not advisible, but one solution for your problem).</u>
I have to receive one material via purchase order as a free item but I need to pay vendor for the freight charges that will be incurred to ship this item along with all the other items in the same PO.
Can you please explain me further as what you mean to say in your post.
I should be able to load these freight cost on all the materials in PO including the material with 'free' indiactor.
In short upon GR MAP should affect with freight cost as there will not be value addition of the material since received as free.
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manOO

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Thanks

Not sure what is the need of cost center on material master when you want to implement Plant maintenance module. Do you have any specific requirement for this?
Ideally cost center will be derived from either functional location/ equipment (equivalent of material master) on to PM work order or notification.
Can you elaborate the requirement?
After all if you wish to go with cost center, then I suggest it should be at plant level as PM requires plant level distribution. You can add up a custom field and give the reference of cost center data element with help of developer.

Freight Cost while Goods Receipt in STO

Dear Experts,
In SAP standard STO process, freight cost calculated while Material issued against STO ( 351/641 movement).
Is there any way possible to calculate the freight at the time of goods receipt instead of at the time of Goods Issue..
Thanks in Advance.

Why do you want it at the time of GR?
Anyways, you can not see or change the freight amount in MIGO. And I don't think there is any other way to post the freight amount other than 351/641 goods issue.

Post freight cost to a different a GL account during 411-K for consignment PO Process

We are planning to implement PO consignment for one of the client.
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For an example if the material cost is $100(PB00) and freight cost is $10(FAR1 - 10%), during 411k it should create two entries one for material cost($100) and the other for freight cost($10) which can be adjusted manually.
We tried by adding freight condition (FRA1) in consignment info record along with PB00 –Gross price and in this case during 411k it is summing both the prices($110) and posting to one GL account and the same settles during MRKO but what we are looking for is how we can split this into $100 and $10 .
I know standard SAP does not support this this during 411k.
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Hi,
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   If you want delivery cost in consignment, you have to go for development. There should be additional entry for delivery costs in RKWA table. I am not sure about the feasibility, but still would like to share the below points:
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   You may refer the note: 165647 - Documentation: Enhancement RMVKON00 (MM-IV) which explains some enhancements related to consignment settlement.
Regards,
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MIRO - Credit memo considering freight costs

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We need to process a Goods Return to the vendor, but the goods has additional costs like Freight.
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How treat that situation where we need to keep the freight costs in the material account ?
Best regards,
Alessandro

hi
in that case, in miro header, there is a tab "details" here u have a option to enter unplanned dlvy cost.. u can enter ur unplanned dkvy cost.
ref the link
http://help.sap.com/saphelp_erp2004/helpdata/en/cb/370d3ae4533072e10000000a11402f/frameset.htm
Edited by: Jayakumar Raju A.S on Aug 17, 2009 3:00 PM

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

How to allocate the freight cost when providing free shipping

We do not charge our customers freight cost. We would like to allocate our freight cost to the product cost of each item sold. Can we allocate our freight cost in the delivery note, then copy the delivery note to the customer invoice and remove the freight? Will this process allocate the freight cost to each item cost on the delivery note, and at the same time not charge the customer for freight? If this process will not work, is there another way to allocate the freight cost to each item on an customer invoice, without charging the customer for freight?
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Wayne

Hi,
It is not possible to post the freight charge to item cost while booking delivery.
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Material need to be re-valuated by selecting the Freight revenue account, so that freight value will be debited to stock and credited to Freight Revenue account.
After doing this you can book delivery and Invoice.
Regards
Ravindran Srinivasan

Full Freight Cost payment to Vendor irrespective of GRN Quantity.

Hi MM Gurus,
I have a requirement where our client have to pay to Vendor for Frieght Value in the first bill (Vendor send many bills based on the GRN quantities) only irrespective of the GRN Quantity.
E.g I have a PO of 100 Qty and the Frieght condition value as 100 INR. Now, We have done partial GRN of 10 Qty only so the INR 10 is inventorized on the material for freight cost during GRN. But we have to pay 100 INR (full amount of Freight Condition) to vendor during MIRO for partial bill of 10 quantities of which we have done GRN.
I have tried doing in MIRO by entering full value 100 INR and 100 Quantity in MIRO for freight Condition but due to tolerance defined in system the invoice goes for block for payment. Actually, the concerned user do not have authorization for the release of blocked invoices (MRBR) and we cannot change the tolerance also because it comes under Audit.
I was thinking whether we do have something in Condition type settings where we can pay full frient cost to vendor in the first bill only irrespective of the Partial GRN?
Please suggest me on this.
Regards,
Neeraj

Hi,
Create a freight vendor separately and assign that condition for th freight vendor in conditions of PO and for that freight vendor do not check the G/Rbased.
In this case after creation of PO you need to do MIRO woth planned delivery cost selection in that screen and then you get a pop up where in you can select your freight venodr and make invoice verifiation for that freignt vendor and later you can go with GR for as much ever quantity as you are in need.In this way it wont effect the freight price with respect to your inward quantity.
Thanks.

Shpmnt Freight Cost varies(extra/short material)

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