Freight capitalization for STO process using shipment cost document

[moazzam_ali]

Dear MM experts

I have been testing and trying to charge freight to material using transportation module. I know how to do it in simple STO process without SCD (shipment cost document) but I am not able to do it with SCD.

I have searched and tried every link I found on SCN. Unfortunately there are many open threads and non of them is answered or giving complete solution. For example I have tried this link where Ajit Kumar has explained the scenario in detail I am but unable to achieve my result. I have also tried other links and SAP note 427944 as well.

Now what thing confusing me is accounting entries and documents/steps where these accounting entries will be posted.

My current process is like this in plant to plant transfer under same company code

STO > OBD > Shipment Document > PGI > Accouting Entry with 641 movement type. Material account debit and same account credit. > Shipment Cost document > GR with 101 without any accounting entry > Transfer freight cost to FI using Freight Service PO determination > Accounting Entry Freight Outward Expense Debit and Freight Clearing Account Credit > MIRO > Accounting Entry Freight Clearing Debit and Vendor Credit

As you can see we are booking freight as an expense and not charging to material. Now what I want is that freight should be charged to material. If I am sending material from plant P000 to plant P201 under same comapny code then freight charges should be added in material cost in plant P201.

I have done FRB1 condition type with accrual and copy shipment cost tick mark and other stuff suggested in all those threads but it is not working.

My requirement is to understand the points where and what accounting entries will be created as per my new scenario which is same as old one except one difference which is to charge freight to material instead of booking expense in freight service PO.

Lets take an example that material cost price is 100 and freight charges is 50. Now as per old threads at the time of GR against OBD system will create accounting document with 150 debiting the stock in plant P201. What about credit? If we have added freight here then what about 2nd accounting entry in my first scenario in which freight expense is debited and clearing account is credited? Could anyone please explain accounting entries and points where these entries will be posted?

Another thing is that is it only possible with moving average price to charge freight to material or can we do this with standard price as well using some standard or customized solution?

Detailed and easy to understand answer will be highly appreciated.

Thank$

[ajitkumar · Accepted solution]

for bringing freight cost to material thru shipment costs, you may have to use item category ( tcode T_56) A, ( relevant for settlement delivery costs ).

you have to have a delivery cost condtition in the PO with no values maintained in the PO. in the condition, control data 2 checkmark copy to shipment costs.

once you calculate the shipment cost and then do GR, the value can be seen in MSEG delivery cost.

[moazzam_ali · Accepted solution]

Hi Ajit

Thank you for coming here as I was expecting you

I have done all these settings but these are not working. There is no accounting document at the time of GR. I hope you have read my whole requirement. Is it possible? If yes then let me know what I am missing? I have done all settings you have told in this and in the link I have reffered in my earlier post.

Thank$

[ajitkumar · Accepted solution]

We are not using relevant to del costs in the business process. I have done it as a part of test, that too for inbound transport. I have recreated the scene for stock transfer and the value is del cost is appearing in the FI document, provided you do the shipment costs before you do PGI,

In Vt01N , do not carryout shipment completion. you do all the rest. Calculate shipment cost and then do that. you will find the del cost added in the 641 doc.

If still not coming pl revert the item category and shipment cost settings

[joao_sousa2 · Accepted solution]

The cost is added to the material during goods issue, not goods receipt. This means the cost document must be created before PGI.

Make sure you create an enhancement that checks if the freight cost document is created before allowing the PGI because the standard doesn't validate it, and if you create the cost document afterwards, nothing happens.

[former_member182575 · Accepted solution]

You need a userexit or Z program that checks the shipment documents and executes the BAPI for MR22.  Though the issue ypu have is Plant to Plant so there is no FI interface open for you to change.

Regards

Waza

[joao_sousa2 · Accepted solution]

You need a userexit or Z program that checks the shipment documents and executes the BAPI for MR22

I'm sorry but you don't. SAP standard does what he wants to do with no development.

The only development I recommend is validating if the freight cost document is created before allowing the posting of the goods issue to prevent user errors.

Though the issue ypu have is Plant to Plant so there is no FI interface open for you to change.

I'm sorry but this is also incorrect. A plant to plant STO can have a condition document where you can add several costs, which then appear in the financial document generated during goods issue.

[moazzam_ali · Accepted solution]

Joao Sousathank you and you are absolutely right. I am testing this and will update soon my findings.

Thank$

[moazzam_ali · Accepted solution]

Hi Ajit Kumar

I have tested this and its working fine. For pricing control V accounting document is as follows.

And for S it is like this.

Can we have same behavior with both materials (with S and V)? I want former accounting document for both materials.

Moreover I want to add two delivery orders in one shipment. One of them is from sale order and one is from STO. One of them would be transfered to FI throught automatically created PO and for STO we will MIRO that w.r.t STO. We can have two different item categories in shipment cost document and we can control settlement relevant field there. For sale order it will be X and and for STO it will be A.

Is this process ok? Can we achieve this? I am trying but I dont know how and why system is creating 6 line items in SCD for one shipment document having two deliveries with one line item each.

Thank$

[ajitkumar · Accepted solution]

for standard costs, i suppose this is standard since the inventory is valuated at the maintained price for the material at both sides

i dont know whether 2  differnt types ( x and a )  are possible

In VT01n the selection criteria is shipment type, if you look at the configuration assign shipment cost to shipment, you can assign only one shipment cost type to shipment type.

I dont know whether we can assign multiple item categories to same  shipment cost item

[udo_werner · Accepted solution]

It is absolutely impossible to post to inventory (BSX) for a S-price material something that is not standard price times quantity. When your S-price is 100 and you post a GR of one piece the posting on BSX MUST be 100. Adding 50 for freight on BSX would create an inconsistency. That is why you see the difference between S- and V-price materials above, and that will always stay like that. If you want to activate the freight costs into inventory in such a case for S-price materials you would have to use material ledger, that would collect the 50 as price differences and would activate them on the inventory account after the end of the period.

best regards,  Udo

[moazzam_ali · Accepted solution]

Hi Ajit

I am testing this and will update once I get some results.

[former_member183155]

Hi Moazzam ;

Firstly, you can benefit Badi/s in package VTRA which is given belowed.

Secondly , i think that  shipping method --> create sto with delivery --> create shipment document and shipment cost document (problem is starting so system will be create PO and service entry sheet automatically , can you try shipment document is non-related with cost document.

Thirdly , you can post invoices charge to material with miro , if you success to direct freight costs to stock account (BSX).

Also , you can benefit doc. sap behaviours for Std price/ Map -->

I hope , you can manage your process ; for me standart way is the best.

Regards.

M.Ozgur Unal

[former_member748874]

Hi All,

I tried the above process but i am not able to load the freight cost on the material. I have done all the said settings above. Is their any settings in any of the copy control.

Scenario - STO - Replenishment Delivery - Shipment - Shipment Cost - PGI  - MIGO.

At the time of PGI the entry what i can see is For ex

Inventory Out - 100

Inventory In - 100

but nowhere Freight is loaded on to the material.

Please let me know where i am lacking

I have done the following settings

In Item Categories - Set the indicator for settlement as 'A'

Same ZFRB conditon type created both in MM side and Shipment Pricing Procedure side.

In ZFRB in MM side, Copy Shipment Cost calc is checked.

Addded ZFRB in PO with 0 value.

Thanks

[atif_farooq]

Dear Moazzam:

Having gone through your detailed thread, i think your requirement can be fulfilled through additive cost feature in Product costing which has been specially designed to deal with these kinds of instances. Please have a look at the following thread and let me know if the suffice your requirement. Between i am not costing expert so might be CO consultant will properly guide you to route this process correctly .

https://help.sap.com/saphelp_46c/helpdata/en/7e/cb81fa43a311d189ee0000e81ddfac/content.htm

Thanks

Atif Farooq

[moazzam_ali]

Hi Atif

The solution which you have suggested is not the client's requirement. It might fulfill the requirement but they want it to be done through shipment cost document. Thank you for sharing and I will also test this. It can be a new learning for me.

Thank$

[raviraj_sharma]

From what I know,  The Shipment cost document  created against a Outbound shipment, will always be expensed.

To load the shipment cost to the Material, it must be included in the STO as a Planned delivery cost.

If you work with Inbound deliveries, you can still use Shipment costing procedure,  In this case you will make a shipment document against an Inbound delivery.

This document would be helpful in Inbound transportation.

http://www.sdn.sap.com/irj/scn/go/portal/prtroot/docs/library/uuid/70fbd5dc-8f5f-2910-2085-c658dc145...  

[moazzam_ali]

Hi Raviraj

Thank you for sharing your views. I have already seen this document and from this document I assumed that if it is possible for inbound deliveries then it must be possible for OBD as well. I tried everything but it didn't work. Now I just want to make sure that is it really impossible to cover this with shipment process? It is a general requirement and SAP should have some solution for this.

I am waiting for some confirmation that it is not possible. If it is not possible with this way then there must be some alternate solution. Do you have any other idea how to achieve this or should we use normal STO process without shipment for freight capitalization?

Thank$

[raviraj_sharma]

Im pretty sure its not possible  to load costs to Inventory via Outbound shipment cost documents.

AlLternate solution was teh one I shared regarding inbound delivery for the Sto.

One simple way would be to  Add planned delivery cost condition in the STO  .(In this case you can still work with outbound shipments and shipment cost documents, just  dont Transfer the Shipment cost documents , use it for calculation.)This calculate value you can Post in MIRO  for the Sto delivery condition.