From sales point of view there are different processes that how you are managing your freight. If you are delivering some physical goods by using some vehicle and paying its transportation cost to vednor then you can have various options or requirements that how this freight should be calculated and posted. It depends on management decision and their requirement that how do they want you to configure this in system. I am listing down some scenarios and in this document I am going to explain most simplest one and after this I’ll move on to others in next documents.
- Freight is being paid to vendor/transporter and you don’t have transportation module implemented. You also create accrual/clearing entry for this.
- Freight is being paid to vendor and you have transportation module implemented. You calculate freight automatically and post it to FI. Company pays this freight and bears the expense.
- Freight is being paid to vendor and you have transportation module implemented. You calculate freight automatically and post it to FI. Comapny doens’t pay this freight but charges to customers.
- Company has it’s own transportation vehicles and it doesn’t pay freight to any vendor but calculates and charges this separately to customer.
- Company pays freight to vendor and charge this freight to material price in plant to plant transfer under same company code. This freight is calculated in shipment cost document automatically.
There could be many other scenarios but by following these and by following the configuration which I am going to explain in these you would be able to cover up most of the scenarios.
In this document I’ll be covering point number one only which is how to enter freight in delivery document and copy this to billing and post in FI with accrual entry. This accrual entry will be debiting freight expense and crediting freight payable liability which will be debited later on when we will pay to vendor.
While explaining these steps I assume that you are familiar with basic configuration steps and prcesses.
Create separate pricing procedure in V/08 with only one condition in it i.e. Freight Expense. This freight expense is basically an accrual condition and you have marked it as accrual in V/06 under control data 2. Condition class A and calculation type is C. This is manual condition and no need to maintain any access sequence. If you want to make it automatic then use access sequence and maintain condition record.
Assign this pricing procedure to your delivery type. For delivery types we can’t determine pricing procedure like we do for orders or billing documents.
Now maintain E in pricing source for copy control from delivery to billing document in VTFL Tcode.
Configuration is completed and you can now test your scenario. I am listing down the steps that I did for its testing.
Created sale order with VA01.
Created delivery order with VL01N and entered freight charges at header level in delivery document because this freight is for complete delivery document.
Created invoice in VF01 and here you can see that freight charges have been copied from DO to billing document.
Posted invoice to FI with VF02 and in accounting document you can view that freight expense is with debit entry and freight accrual is with credit.
This is how we control freight with most simplest and easiest way. I will continue this document by explaining key points in other scenarios I have listed above. If you have some other scenario which I have not covered in these 5 listed scenarios then I would appreciate if you share that in comments section and I will try my level best to cover that too in this document.
Positive/negative feedback will help me to improve next documents.