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Author's profile photo Mehmet Ozgur Unal

Planned & unplanned delivery costs

I read a lot of threads about delivery cost problem. When i watched tv , i decided to write a document.

In my opinion , if i describe details planned and unplanned delivery costs with their account determinations , everyone have a basic guide.

I hope that it will be clear and helpful

*****

This document contains two examples like planned&unpanned delivery cost.

Related Oss Notes :

187694 – Error V1631 when header conditions created

196884 – Error V1631 for creation of header conditions (II)

620926 – V1631; no new delivery costs

720191 – Conditions not modifiable after invoice receipt

117486 – Change the freight vendor in freight condition

549408 – Conditions modifiable after invoice receipt

2008812 – Delivery cost in STOs cannot be added/deleted after GR

457511 – FAQ: Purchase order change and goods receipt in purchasing

1854121 – Incorect settlement of planned delivery costs

 

Planned Delivery Cost

When the goods receipt is posted , the stock is valuated at total procurement cost ( Material + Freight )

Postings are  made to special clearing accounts (such as the freight clearing account). These entries are then cleared when the incoming invoice is posted.

If material has standart price , stock account will be valuated with standart price.

If material has map , stock account will be valuated with total procurement cost ( po unit price*quantity + freight cost )

Example for standart price – planned delivery cost

We have a meterial 2090 with 100 pc in stock , standart price 10 eur/pc.

I will procure to stock additional 100 pc with planned delivery cost.

*Po has unit price 12 euro , it will cause price differences with delivery cost….
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**MM document , stock account be valued with stanadart price , GR/IR -1200 eur with Po price ,

**Price difference account calculated after posting of   material and freight costs be posted -1200-200 = -1400 = +1000 +400

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Fi document : Vendor account be valuated -1428 euro ( material  cost with tax )

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**Vendor account be valuated -238 euro ( freight cost with tax )

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After that , i have 200 pc stock with 2000 euro amount so it is valuated with standart price.

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Unplanned Delivery Cost

Miro – You can be used subsequent debit to post unplanned delivery costs.

Moving Avarege Price

When the goods receipt is posted,stock is valuated with po unit price* migo quantity. The offsetting entry is posted to the GR/IR clearing account.

Incoming invoice is posted, the GR/IR clearing account is cleared at the order price.

The resulting difference between order and unplanned costs is posted to the stock account. Total value of the stock changes, the total quantity remains the same. This causes the moving average price to be redetermined.

Standart Price

When the goods receipt is posted, stock is valuated with the product of quantity times standard price. Any differences procurement costs are posted to a price difference account. The offsetting entry  is posted to the GR/IR clearing account.

When the incoming invoice is posted, GR/IR clearing account is cleared at the order price. Difference between order and invoice price due to the unplanned costs is posted to price differences account.

Example – Moving Avarege Price with Unplanned delivery cost

Material 2088 have not stock with map.

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*** Po

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**Migo

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** Miro – material cost

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** Unplanned delivery cost with subsequent debit

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If you want to post unplanned delivery cost to different gl , it is possible with belowed configuration steps.

Advised by Raja Ramasamy.

Spro –> MM –> Logistic Invoice Verification –> Incoming Invoice –> Configure how unplanned delivery costs are posted

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There are 3 options belowed. I choose ‘Different G/L line.

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For G/L account determination , we have to run OBYC tcode. UPF transaction is related with unplanned delivery costs.

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Add a related G/L Account for automatic account determination.

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Regards.

M.Ozgur Unal

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      38 Comments
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      Author's profile photo Mehmet Ozgur Unal
      Mehmet Ozgur Unal
      Blog Post Author

      Hi Mr.Jurgen ;

      I revised document with your advises.

      Regards.

      M.Ozgur Unal

      Author's profile photo Mohsin Abbasi
      Mohsin Abbasi

      Hi Ozgur,

      Nice one.............. 🙂

      Best Regards

      Mohsin Abbasi

      Author's profile photo Mehmet Ozgur Unal
      Mehmet Ozgur Unal
      Blog Post Author

      Thanks Mr.Mohsin

      Author's profile photo Basar Ozgur Kahraman
      Basar Ozgur Kahraman

      Hi Ozgur,

      Nice blog, keep going!!

      Regards

      Basar Ozgur

      Author's profile photo Mehmet Ozgur Unal
      Mehmet Ozgur Unal
      Blog Post Author

      Thanks Mr.Ozgur

      Regards

      Author's profile photo ' MoazzaM '
      ' MoazzaM '

      It can be benificial for users like me who are trying to learn MM 🙂

      Thank$

      Author's profile photo Mehmet Ozgur Unal
      Mehmet Ozgur Unal
      Blog Post Author

      Hi MoazzaM ,

      It is nice to see you in MM Network. I hope that i will spend time in SD forum.

      Regards.

      M.Ozgur Unal

      Author's profile photo Former Member
      Former Member

      What if planned delivery cost is invoiced before GR and the value is different from PO?

      Author's profile photo Former Member
      Former Member

      In this case GR will be valuated with IR price.

      Author's profile photo Mehmet Ozgur Unal
      Mehmet Ozgur Unal
      Blog Post Author

      Hi Raja ;

      You are right , i will add this option whn i have spare time.

      Regards.

      M.Ozgur Unal

      Author's profile photo Mehmet Ozgur Unal
      Mehmet Ozgur Unal
      Blog Post Author

      Hi Liak Chye Kang ;

      If you post your delivery costs with planned method , you can post planned delivery cost before good receipt but i hope that you want to ask difference value control.

      A lot of people advise ' Cancellation of good receipts and revise your condition price' but i advise you ' Control differences with M8 system message reference --> M8 messages for incoming invoices with tolerances

      Regards.

      M.Ozgur Unal

      Author's profile photo Former Member
      Former Member

      Unplanned delivery cost can be posted to different g/l account other than stock/price difference account using IMG configuration. You didn't discuss that option here.

      Author's profile photo Mehmet Ozgur Unal
      Mehmet Ozgur Unal
      Blog Post Author

      Revised...

      Author's profile photo Prabhakaran Mohan
      Prabhakaran Mohan

      Good Documentation, with screen shots, make it easy to understand.

      Author's profile photo Mehmet Ozgur Unal
      Mehmet Ozgur Unal
      Blog Post Author

      thanks Prabhakaran M , i hop that someone benefit from document.

      Author's profile photo Former Member
      Former Member

      Dear Mehmet, thank you for your blog 🙂

      So, please, explain me one thing about planned delivery costs.

      Situation is following

      I have in PO some planned delivery costs (DC) in the header, and I should increase the total value of each material in PO on these DC, because some invoices (not all of them) for planned DC will come too late and we don't want to wait them. Material ledger is active. We have materials with standard price and map.

      Price in PO item is without any DC.

      So what is the best way to increase the value of materials n PO on planned delivery costs after goods receipt?

      Thank you

      Author's profile photo Mehmet Ozgur Unal
      Mehmet Ozgur Unal
      Blog Post Author

      Hi Don Z ;

      I revised document for your situation.

      Regards.

      M.Ozgur Unal

      Author's profile photo Former Member
      Former Member

      Hi Mehmet,

      Thank you for your answer.

      Could you describe or show the screenshot of customizing for freight cost condition type? Which operation codes and corresponding G/L accounts do you use for this freight condition type?

      Author's profile photo Mehmet Ozgur Unal
      Mehmet Ozgur Unal
      Blog Post Author

      Hi Don Z ;

      You can benefit from standart MM Customizing path.

      Spro --> MM --> Conditions

      Related tcodes : M/05 , M/06 , M/07, M/08

      Regards.

      M.Ozgur Unal

      Author's profile photo Former Member
      Former Member

      Hi Mehmet,

      For the first look I have in my system all the costomizings, but I don not understand why I do not have the posting to a price difference account (PRD) during GR? I have only transaction keys Credit FR3+ Debit FRE posting lines.

      For example:

      PO item net price = 100, quantity = 200, standard price of material = 80, Freight = 2.000.

      I have the following postings for transaction keys:

      Debit BSX = 20.000 (ok)

      Credit WRX = 16.000 (ok)

      Credit PRD = 4.000 (ok)

      And these lines also from the freight condition:

      Credit FR3 = 2.000 (accruals from freight condition, some GR/IR account) (?)

      Debit FRE = 2.000  (account key from freight condition, some GR/IR account) (?)

      Why not PRD for freight?

      Author's profile photo Mehmet Ozgur Unal
      Mehmet Ozgur Unal
      Blog Post Author

      Hi Don Z ;

      Please create a discussion related with your last question .

      Regards.

      M.Ozgur Unal

      Author's profile photo Former Member
      Former Member
      Author's profile photo Former Member
      Former Member

      Hi,

      Nice Document, thank you for sharing.

      Author's profile photo Mehmet Ozgur Unal
      Mehmet Ozgur Unal
      Blog Post Author

      Hi HHC MM ;

      Thanks a lot .

      Regards.

      M.Ozgur Unal

      Author's profile photo raghavendra sai
      raghavendra sai

      this is a good one

      Author's profile photo Mehmet Ozgur Unal
      Mehmet Ozgur Unal
      Blog Post Author

      Hi raghavendra sai ;

      Nice to meet you ..

      Regards.

      M.Ozgur Unal

      Author's profile photo Former Member
      Former Member

      Good document. 🙂

      Author's profile photo Mehmet Ozgur Unal
      Mehmet Ozgur Unal
      Blog Post Author
      Author's profile photo Shiva Vasireddy
      Shiva Vasireddy

      Good posting

      Thank you for sharing

      Author's profile photo Mehmet Ozgur Unal
      Mehmet Ozgur Unal
      Blog Post Author
      Author's profile photo Former Member
      Former Member

      Nice Document with Clear Explanation. Thanks for your Sharing....

      Author's profile photo Raghavendra M
      Raghavendra M

      Nice Document..Easy to Understand.. Thanks a lot...

      Author's profile photo Sudhakar Chaganti
      Sudhakar Chaganti

      Good document

      Regards

      Sudhakar

      Author's profile photo Former Member
      Former Member

      Hi All,

      Have a small doubt. I am trying to learn Sap MM, but i am working as an end user. We used to add unplanned freight charges for the PO without Account Assignment (Stock POs). We will be always requesting GR team to reverse GR and then we will amend freight charges to PO( adding freight charges to material cost ). Do we have any other way to solve this.

      Regards

      Meenu

      Author's profile photo Yebing He
      Yebing He

      Hi Meenu,

      "subsequently debit"  will be useful to your suituation

      Author's profile photo harthik chintala
      harthik chintala

      sir,i have a doubt... how come u levy INPUT TAX on both material as well as frieght???

      what if i dont want to levy input tax on frieght

      Author's profile photo Amer Jamal Khan
      Amer Jamal Khan

      Thanks Mehmet.

      Author's profile photo Saurabh Patil
      Saurabh Patil

      Mehmet Ozgur Unal

      Nice document.

      I have a suggestion.

      In example – ‘** Unplanned delivery cost with subsequent debit’, you showed the screenshots for separate GL account rather than material account and you have written about its config part in the later part of this blog.

      This confuses the 1st time reader since the person expects inventory account to be hit in subsequent debit rather than separate UPF gl account. please bring this portion after you explained the config steps for Separate account.