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Different freight scenarios and copy freight condition from delivery to billing document.


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.

  1. Freight is being paid to vendor/transporter and you don’t have transportation module implemented. You also create accrual/clearing entry for this.
  2. 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.
  3. 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.
  4. Company has it’s own transportation vehicles and it doesn’t pay freight to any vendor but calculates and charges this separately to customer.
  5. 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.

Configuration steps.

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.

Continued here. . .


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  • Dear Moazzam sir

    Always what ever you have posted in scn Forum it is very very useful to all Members

    Very Good Document You have shared and It is very Interested , some days back You remaber i have asked same question At that time only You have replied very Good  🙂

    But one small doubt plz let me know

    You have mentioned some settings in V/06 as you said

    That is Frieght condition type right ? HD00 & KF00?

    Am i corect

    Plz let me know

    Positive/negative feedback will help me to improve next documents.

    I like Your Attitude Even You are One of the top contributer In scn Forum you are asking As A common Member ( new member )

    Keep it up sir we have to learn so many thing from You Aport From SD

    Thanks a lot

    But tell me one Thing we can mainatain Frieght condion Types in the sales order level also insted of maintaineing in delivery level Right ?

    Thanks a lot sir

    • Hi Venu

      Thank you nice words.

      We can use HD00 condition or its copy but I have used a condition with accrual settings. My purpose is to create accrual entry at the time of SD invoice and finance guys will pay this amount to vendors. This is because of two reasons. No 1 is accounting rule i.e. expense should be posted in same period and 2nd one is that we can not credit vendor in SD invoice so we have to make clearing entry and credit vendor after posting SD invoice.


  • Dear MoazzaM,

    Thanks for the wonderful document. But I need your help, I wanted to actually try this out and so did follow your steps exactly as you mentioned. But, the freight condition added in delivery is not getting picked up in the billing doc. I have attached a few screen shots for your reference, please let me know the mistake I have done.

    In V/06 I created a new condition type (copy of HD00). Maintained the following:

    Condition Class: A

    Calculation Type: D (As I would like to calculate the freight on the weight)

    Condition Category: Freight

    Checked Header Condition

    I checked the Accruals in Control Data 2.

    I created a new pricing procedure and added only this condition type. Checked manual entry and also assigned an Acc Key (HRF). Below is a snapshot.

    I assigned this pricing procedure to the delivery type as you have mentioned.

    In copy control I maintained Pricing Source to E for the delivery to billing type I am using..

    I then created a SO and the delivery doc. I added the newly created condition type in the delivery header saved and did the PGI. When I create the billing doc in VF01 and I checked the header and item, I don't see the delivery Pricing procedure getting picked up and so the freight condition created during delivery not getting populated in the invoice.

    What could have possibly gone wrong? Request if you could please help.



  • Hey MoazzaM,

    I have got the error sorted, but I am not sure if I am correct. I am now able to see this freight that is added in the delivery getting populated in the billing document.

    I initially had not maintained this new condition type HF00 in the pricing procedure assigned for the Sales Order/Billing Doc (based on the Doc PP). I had only created it in the pricing procedure assigned to the delivery type. I maintained the same condition type in that pricing procedure as well. Now, the value added in the delivery is getting picked up in the invoice as well as the accounting document.



  • Hi Moazzam,

    could you please also explain the account determination for the condition type. Are you assigning any account key and accrual key for this condition type in the PP. I don't see that in the screen shot u have attached. I presume it should be done in the PP assigned to the SO/Billing doc. Though this condition type behaves as a statistical condition the posting still happens to the accounting, if I am not wrong this is achieved by checking the accruals option in the control data of the condition type.

    please clarify.



    • Hi

      Yes I have assigned account key and accrual account key for this condition in Billing document PP. With this system posts it in FI. No need to maintain any account key in delivery PP.


  • Hi MoazzaM,

    I had another scenario with this freight condition type. My company insists on as minimal manual intervention as possible for pricing. Given the situation, my doubt is:

    I still get to know about the freight only during the delivery process, but I want the system to automatically pick it up during delivery and not manual entered. How can I achieve this? I do understand that for automatic determination of the value, I need an access sequence and also need to create condition records, but doing this, the values gets picked up in the SO itself which I don't want.

    Please clarify.



    • Hi

      You can have condition table with fields from delivery document. Using these fields maintain condition record and system will pick that in delivery and copy that in billing. No need to fetch record in sale order. You can use route, shipping type or any other fields as per your requirement.


  • Hi MoazzaM,

    As usual a great article... thanks for it. I have one doubt, when we create a liability for freight (transportation) vendor -  then how can the accounting hit for that particular vendor (if we are paying him)? will we be doing it by creating transporter as vendor in partner functions?



    • Hi Hussain

      In this document I have explained how to enter freight in delivery document and copy that in billing and then post in FI as accrual. This will create a payable liability which finance AP department would pay later. There will be vendor master record for transporter and they will pay freight charges against vendor invoice through MIRO. This payment and SD billing will not have any link.


      • hi nazeem

        nice document ,

        but one main setting  is missing at pricing procedure

        at V/08

        Transaction-specific pricing procedure,

        Pricing procedure transaction-specific indicator

        activate check mark this other wise system not transfer shipping cost  to billing


          Thank you for your feedback. I have never heard the name you called me with 😛 and I think if someone has this name that could be some female 🙂

          The indicator you are talking about works for shipment document. When we copy shipment cost from shipment cost document to billing document at that time this indicator needs to be considered and marked. I am copying condition value from delivery document to billing and in this copying value this indicator has nothing to do. This is my opinion. Could you please check and see how your system reacts?


      • Hi MoazzaM,

        Ok, got it! so the transporter will be like any other vendor to the company. I would like to know your opinion on having the transporter defined as a vendor in partner function.

        thanks & regards,


        • Hi Hussain

          Still if you assign vendor as a prtner function in customer master data you have to post vendor invoice through MIRO and there will be no link in SD and MM document flow. You can only use some text field to build some link in SD and MM documents.


  • Hi MoazzaM,

    Very nice document with good explanation.Thanks for sharing such a good document by investing your valuable time.Where can i check the remaining documents created by you.Is there any link to check ??.



    • Hi Pavan

      Thank you for nice words. You can go to my profile and click on Content tab. There you can see all documents/blogs I have shared on SCN.


  • Hi Moazzam,

    Thanks a lot for this document !!!

    Understood the different method of freight calculation delivery to billing. But in our business requirement, freight has to be calculated after the billing (or) invoice. Is this possible.. 😕

    Please help me out !!!

    Thanks in advance 😐

  • Hi,

    I have a doubt,can we have different pricing procedure from Sales Order and delivery document.??

    As you have maintained freight condition type in delivery note PP.

    So in order to reflect the same PP in Billing ,we need to define copy control in such a way??

    Is that you maintained same PP for sales & Delivery documents??

    • Hi

      Delivery pricing procedure can be different for sale order, delivery and billing but in my scenario I have same for sale order and billing. Created separate only for delivery.


        • Hi

          shipment cost document has different pricing procedure. I am confused what you really want to ask. Could you please be more clear about your doubt and question?


          • I was bit confused .

            So in the copy control you have made Price source as E.So the Invoice gets the price copied from Delivery i.e what ever Pricing Procedure maintained in delivery is copied to Invoice.???

          • There some pre-requisites for it which I already explained in details in document. Condition type should be same and copy control settings etc.

            Whatever pricing procedure is not copied. It is only condition types which are copied to billing document pricing.


  • Hi very interesting topic and detailled information

    I wonder if in scenario 1 when you post the accrual and later enter vendor invoice from Miro

    we could have the same profit segment in the freight P&L accruals and in the freight variance posting from vendor invoice entry - versus posting to a cost center .

    Way back in early 2000 we did a Z program to generate the PO and use a profit segment ( the Freight GL account - cost element are defined to have profit segment required  from field status group)


    Regards and thanks for sharing your experience


  • Hi Moazzam,

    Thanks for the nice blog. Could you let me know how is the PO created in scenario 1 ? As in how is the freight owner paid ?

    Also whats the trade off between scenario 1 and scenario 2 . why should customer go for scenario 2 at all because it calls for lot of customiziation.



  • Hi Moazzam,

    Thanks for the nice blog. Could also share how a PO is created in scenario 1.

    Also please share the trade off between scenario 1 and scenario 2. Why should the customer go for  scenario 2 because it calls for lot of customizing.



    • Hi


      In scenario one PO is created manually in MM. There is no link of that PO with SD. In scenario 2 it is required to do all the configuration as in transportation module this is necessary. Please read SAP help documents on this.




    Hi MoazzaM, thanks for sharing.
    I have a  similar case. Manual condition for freight is beeing passed to billing.

    Now checking @delivery I do not get any entry for delivery in KONV. Are you familiar with this issue? any hint will be appreciated. Cheers, Enrique

  • Hi MozzamM, Great document ..We appreciate a lot.

    I got one interview question last week : How do we handle freight without using purchase order condition or any condition type in delivery/purchase order ? Basically without using condition type in pricing is their a way to handle freight ?

    • Hi

      Thanks for appreciating but I don't see any other option to handle freight apart from entering it in some condition type either in delivery/billing or PO.  If no condition type would be used then this would be directly posted in FI through JV.



  • Hi Moazzam,

    Thanks for the clear documentation. I have few questions in terms of processing the Shipment cost. Hope you can advise.

    My scenario is that, I have three forwarding agents & I am determining the forwarding agent in the delivery based on the route picked up(through enhancement) .  Also, for each forwarding agent, postings has to happen to different GL account.  I have only one shipment cost type.

    This means, when the shipment cost is created for vendor X, i need to post in A GL,for vendor Y, GL account B has to hit. To meet this requirement, i will have three different shipment cost item categories with different valuation class and assign to the shipment cost type .

    Question now is that, is it possible in SAP Standard to have Vendor X alone picked up in Shipment cost when my shipment has vendor X & vendor Y should be there in the shipment cost when the shipment has forwarding agent Y. Currently, both the item category gets picked up in the shipment cost document.


    Thanks for your advise



  • Hi Moazzam,

    One of our Client has a business scenario like explained in Point 1:

    1. Freight is being paid to vendor/transporter and you don’t have transportation module implemented.

    But this is in the case of Stock Transfer Orders(Intra /Inter company Code Scenario’s), business case little differ from standard STO Freight handling process.

    In Standard, Freight can be handled in STO at the time of creating STO PO itself we can include the actual freight Condition and it’s value we will maintained and this freight can be captured & Inventorized at the time of ‘POST GOODS ISSUE'(@PGI Level-VL02N).

    But, in our client business scenario – Actual Freight can be known at the time of OBD-Outbound Delivery Level-(VL10D) depending on the Truck capacity,(when Truck arrives in customer’s premises/location)—>(i.e.,Actual Freight not known at the time of PO Creation level).

    Pain Point:

    Here Pain Point is that ‘whatever the Value which is maintained in the freight condition type at the time of STO PO Creation, that value only system will capture and post it to inventory/Stock G/L Account at the time of PGI(VL02N), and these values can be captured in our standard stock reports – like MB5B.

    Can you please give your valuable inputs/suggestions how we can map these kind of scenario in the system to capture by keeping below points in mind?

    • the ‘Freight Value should be Inventorized & Actual Freight Value will be known after the OBD(VL10D) creation(Not after STO PO Creation).
    • Should be captured in Inventory Reports(like MB5B).

                               Thanks in Advance.


    Lingaiah Gugulothu.

  • Hello,

    I am very new in SAP and I m hoping you will enlighten my mind ?

    We are selling reconditioned used machines from our stock and most of the time we organizate the shipment (a 3rd party vendor is payed by us) from us to customer , and invoice this freight transportation + used machine price.

    what is the diference between transportation freight added as condition when we issue the invoice or as an item in Sales order beside the used machine?

    Thank you