14 Replies Latest reply: Oct 15, 2012 11:57 PM by Mary Danam RSS

Configuration to Add Freight Cost to Purchase Orders

Cecilio Cruz II
Currently Being Moderated

HI Experts,

 

I'd like to know how to configure adding the Freight Cost for a Certain Company Code, Vendor and Material into the Purchase Order Line Item. Also it should be reflected into the Line Item Amount and Header Amount.

 

Thanks for you input.

  • Re: Configuration to Add Freight Cost to Purchase Orders
    Bijay Kumar Barik
    Currently Being Moderated

    Hi,

    Freight Cost  can be added to inventoried or taken to separate G/L account but not added  a Certain Company Code, Vendor and Material

     

    Setting 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}  there

     

    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.

     

    Setting 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 go to Condition type in 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.

     

    NOTE:

    Active "G/L account' & " Material " TABs in the MIRO screen to post COST by selecting two check boxes of "Direct posting to G/L account=active" & "Direct Posting to Material=active" & then save, in the following path

     

    SPRO> Material Management>Logistics Invoice Verification->Incoming Invoice->Activate Direct Posting to G/L Accounts and Material Account

     

    Regards,

     

    Biju K

    • Re: Configuration to Add Freight Cost to Purchase Orders
      Mohamed Haris
      Currently Being Moderated

      My business wants Freight to post seperate GL not add to Inventy . Please help me solve this .

    • Re: Configuration to Add Freight Cost to Purchase Orders
      Asif Nakhuda
      Currently Being Moderated

      Dear Mr. Barik

       

      I have gone through your reply related to posting Freight Cost to separate GL. We have a similar requirement to post delivery cost to a separate GL, the difference being that the material is of Pipeline nature and we are maintaining Pricing Schema conditions in the Purchase Info Records. The details of our scenario are as under;

       

      We have configured a pricing procedure ZLPLM for pipeline material having a gross price and a delivery cost. The requirement is to post the delivery cost to a separate GL. For this an Account Key ZC1 has also been created. PIR has been created for the requisite conditions in schema. On processing of material document against Process Order for pipeline material (movement type 261P), it has been observed that the consumption posting (total cost of both the conditions) is hitting the GL defined in GBB/VBR for the material (w.r.t. valuation class) instead of partial amount (delivery cost) hitting the GL defined in the Account Key against the condition in Pricing Schema.


      Appreciate your advice for resolving this discrepancy.

    • Re: Configuration to Add Freight Cost to Purchase Orders
      Mary Danam
      Currently Being Moderated

      Hello Gurus,

       

      We have inter-company stock transfers with the issue that the moving average unit cost in the material master of the receiving company code includes the mark-up, and does not reflect the TRUE moving average cost?

       

      Scenario:

       

      All the inter-company STO's have a Markup of 5%. (Markup condition type defined: ZIMU)

       

      The material is maintained in two plants says Plant A and Plant B. We know that the difference in material cost is PPV. The client want us to show true PPV

       

      Company A sells to Company B

      MAUC in Company A = $100

      MAUC in the material master of Company B = $110

      PPV = $100 ($110-$100)

       

      All our intercompany STO's have a 5% markup

       

      Currently, during Goods Receipt the entry is posted:

       

      Inventory a/c Dr.

      To GR/ IR a/c Cr.

      To PPV a/c Cr. (net of ppv and markup)

       

      The client wants to see the True PPV (Split of Markup and PPV) and the desired entry is:

       

      Inventory a/c Dr.

      To GR/ IR a/c Cr.

      To PPV a/c Cr.

      To Markup a/c Cr.

       

      Tried couple of config. settings but could not get the desired results:

       

      1. Defined a Transaction key: ZFI

      2. Defined Pricing Condition for Markup: ZIMU(Pls note: In control data I haven't assigned the condition category and haven't checked accruals in Control data)

      3. Pricing Schema (ZM2001):

       

      Steps—Count--- Cond.type-------Descrip----------------------From---------To-------XXXXX--------Account key----------Accural key

      10----------0----------ZICC--------------Internal Cost---------------------------------------------------------------------------------------------------

      20----------0----------ZIMU-------------IC Markup----------------------------------------------------------------------ZFI------------------------------

      30----------0-----------------------------------------------------------------------------------------------------------------------------------------------------

      100-------10----------FRB1------------Freight (Value)------------------------------------------------------------FRE--------------------FR1----

      100-------20----------FRC1------------Freight/ Quantity-------------------------------------------------------- FRE--------------------FR1--

      200--------0-------------------------------Delivery Costs----------------100-------------------------------------------------------------------------

      300--------0-------------------------------Effective Value----------------------------------------------------------------------------------------------

      400--------0---------GRWR------------Statistical Value-------------10--------------30---------------------------------------------------------

      500--------0-------------------------------PPV-------------------------------20-------------20---------------------------------------------------------

       

      4. Automatic posting procedure settings: (OBYC)

         In Transaction Key: (PRD) Accounts are based on:Debit/ Cerdit [X]

                                                                                    General Modification [X]

      General Mod.                       Debit             Credit

                                                  530000           530000

      PRA                                     530000           530000

      PRF                                     530050           530050

      PRU                                     530000           530000

      ZFI                                       530005           530005

       

       

      *Cost Element 530000 (G/L Price Variance)

      ** Cost Element 530005 (IC Markup)

       

      Please guide what am I missing here...!

  • Re: Configuration to Add Freight Cost to Purchase Orders
    Cecilio Cruz II
    Currently Being Moderated

    thanks @Bijay, I checked the system and it's already set last first implementation for this Freight Cost. But what about adding it in the Purchase Order? Should it be reflecting there?

    • Re: Configuration to Add Freight Cost to Purchase Orders
      Ajit Kumar
      Currently Being Moderated

      In the purchase order item condition tab click the drop down list for conditions and choose the freight condition that suit your need and add value. Manual conditions have to be called for the first time. subsequently it will default for the material vendor combination.

      if it is an automatic condition maintain the condition table in MEK1 for the condition. then the value will come in the PO automatically

    • Re: Configuration to Add Freight Cost to Purchase Orders
      Bijay Kumar Barik
      Currently Being Moderated

      Hi,

       

      what do you mean by  adding it in the Purchase Order? are you talking about again Freight Cost!

       

      If Freight Cost is there in PO in term of condition type(for Freight), then it will reflect Freight G/L account or  inventory account as per your setting or requirement.(read my above answer

       

      Purchase Order is  a committed document, once created & released, then reached vendor and now how you can add Freight Cost ,!

      If Freight Cost not there in PO & need to accounted, then in this case , you can capture directly in MIRO for a separate Freight G/L account by activating:

       

      Active "G/L account' & " Material " TAB in the MIRO screen to post COST by selecting check boxes of "Direct posting to G/L account=active" & then save, in the following path

       

      SPRO> Material Management>Logistics Invoice Verification->Incoming Invoice->Activate Direct Posting to G/L Accounts and Material Account

       

      Regards,

       

      Biju K

      • Re: Configuration to Add Freight Cost to Purchase Orders
        Cecilio Cruz II
        Currently Being Moderated

        Hi @Biju K, I appreciate the answer but it's already configured in the system. And I think we are not on the same page here. They have already the option to add manually the Freight Cost into MIRO by GL Account or to Purchase Order by Condition Type FRA1. And it is working fine only that the users wants to have it reflected automatically in their Purchase Orders.

         

        So I need to know how is it configured to have this Freight Cost automatically be reflected into the Purchase Order Line Item Conditions Tab. If there is a way where the condition table should be maintained in standard for a certain Key Fields (like Purch Org, Material, etc) then that's the best way or any standard suggestions to make this possible is also okay.

        • Re: Configuration to Add Freight Cost to Purchase Orders
          Ajit Kumar
          Currently Being Moderated

          if you  want the freight cost to come automatically, you have to find out the unique conditions with defines the cost. for e.g if the freight varies based on material, plant, etc. once you know that you can find which table suits your need . you can check the available tables in m/04 . if none of the tables suit your requirement you can create table  in m/03.

          if you are using a predefined table, check in access sequences where this table is defined. otherwise create an access sequence or enter the created table in an existing access sequence. the lower access number will be accessed first. if you are using 2 tables this will be important. you can do this thro SPRO> purchasing >conditions

          once the access is defined enter this in the condition using m/06 and make the condition automatic entry. then remove the condition from pricing schema and reenter it. at the same level.

          maintain the table using MEK1 for the condition.

          when you create the PO the condition value

    • Re: Configuration to Add Freight Cost to Purchase Orders
      Manish Jain
      Currently Being Moderated

      Hi,

       

      Go to M/08 and assign the new condition in your pricing procedure.

       

      If you want to bring it to the PO already created, in ME22N go to condition tab and click on update below the conditions and select carry out new pricing procedure.

       

      Regards,

       

      Manish Jain

  • Re: Configuration to Add Freight Cost to Purchase Orders
    Cecilio Cruz II
    Currently Being Moderated

    Thanks, I saw in MEK1, a custom condition type ZG01 - Markup Delv Plant, with Key Combinations: Price List/Mat Grp and Sales Org/Dist Channel/Mat Grp. How can I check the configuration? As they wanted to include Freight Cost Automatically in their Purchase Orders.