Intra Company Stock transfer issue

[atif_farooq]

Hi:

Our client is having transportation management module for dealing with the costs related to freights based on defined routes,rates etc. I would explain my scenario as under

Transportation management is in use.

Two plants,Plant A and Plant B

Mat 1000 is FERT and has standard  price100 . it needs to be transferred to Plant B from Plant A.

Plant B makes STO.

Plant A creates shipment document in which freight value 10  is given in the freight condition type.

On Outbound delivery order, system creates financial document

Stock Dr (Plant B) 100

Stock Cr (Plant A) 100

Freight PO is auto created by system and during service entry sheet following accounting entries are generated

Freight expense Dr 10

Freight Clearing Cr 10

In plant B upon receiving GR there will be no financial entry.

and later on it is invoiced and paid. These freight expenses are not added anywhere to material cost during shipment. We can well replace Freight expense with Stock account here but still see PGI has already been done above. I am thinking of ways to solve above come out on resolution on above scenario, additive costs option is there but i am not sure if they will be really useful in this particular scenario. Please guide me if there is any standard solution to above issue.

Regards

[udo_werner]

Hi Atif,

as of SAP TM 9.0 there is a means to enter the inbound freight costs from TM into ERP material valuation via the agency billing document.

The process is documented here:

http://help.sap.com/erp2005_ehp_06_hana/helpdata/en/8a/0c5d09a7794ae6938f9c8184f4251f/content.htm

and here

Cost Distribution for Shippers - Settlement - SAP Library

I hope that helps,  best regards,  Udo

[atif_farooq]

Hi Udo:

Thank you for the useful link but i guess this is not possible within the boundaries of SAP ECC.

Regards

[udo_werner]

that's correct, but you said "Our client is having transportation management module", so I assumed that would be SAP TM.

[Former Member]

Hi Atif,

If you have ML/Actual Costing active you can achive your requirement via capitalised Shipment Costing.

Reagrds,

Szymon

[ajaycwa1981]

Hi Atif

Saw your comment on the POD document, but was tied up and could not respond

You have 2 options here

1. Make the price control V in Plant B and it can inventorize the 10 on Stock value, provided you include it in the pricing Procedure

2. With Price control S - You can use the Additive cost or Costing sheet to add up the 10 to the Standard cost of 100 that would be fetched from Plant A

Br. Ajay M

[atif_farooq]

Hi Ajay:

Thank you for your reply, well its client requirement to update the cost of product as soon as outbound delivery order is created. Stock transfer was at 100, freight cost was 10 in shipping document . Stock got debited with reference to Recv plant and credited with refer to Sending plant at 100 . Freight service entry sheet and  invoicing is done later on so how in this case system can update standard of material in receiving plant exactly at the time of GRN, is some of kind enhancement required for doing . Additive cost approach will update standard cost at the end of month upon SCE execution. Please guide.

Regards

[ajaycwa1981]

Hi

You can release SCE at the begining of the month.. Nothing stops us from doing that

Once SCE is released in Plant B to be 110, every STO will hit below entry

Stock (Plant B) Dr. 110

Stock (Plant A) Cr. 100

Stock (Plant B) Cr 10 (Inventory revaluation - UMB or something else in OBYC)

Br Ajay M

[atif_farooq]

Hi Ajay:

Let me brief you the client requirement because i think i am unable to communicate the issue properly. Let us say we have two plants

Plant A (Sender) Location A

Plant B (Receiver) Location B

Goods are sent from plant A to B on various days during the month, freight cost to carry them from Plant A to Plant B also varies. Its client requirement to update the standard cost inclusive of freight cost as contained in shipment document for the material in the receiving plant right at the time GRN is done in Plant B against STO created in Plant A although no financial document is generated during GRN since entry is already posted . Freight will always be expenses out in freight PO service entry sheet. Additive cost option updates the cost of inventory for freight related cost once in a month i-e on SCE execution. I am not sure if this is achievable in standard.

Thanks

[udo_werner]

Hi Atif,

normally that would be achieved by having a freight condition in the PO against the other plant. In that case the GR posts the stock entry as well as the freight, and the freight would be added to the inventory value in case of a V-price, or posted as material price differences in case of S-price.

To be honest I do'nt know about the integration of the service entry sheet from LES with planned delivery cost in a STO. Ideally the service entry sheet would clear the freight accruals made during the GR as a MIRO for delivery costs would do.

best regards,   Udo