Freight Cost Allocation in SAP TM Integration with Financial area of SAP.
One topic always come up in the Implementation of SAP TM is how SAP TM handle the integration with financial area of SAP. SAP TM uses SAP S/4 HANAs LO Settlement Management module for distributed freight cost posting.
The topic in this blog will get inside how the Cost allocation of the Freight is setup for Shipper scenarios. * No Forwarding Order involved in this scenario*
The Cost allocation is based on the Cost distribution in the Freight Document (Basically where cost distribution is enabled in the Freight Document types).
Once the FSD is posted the overall freight costs are posted to SAP Materials Management (MM)
where a purchase order and a service entry sheet (SES) are created.
In parallel the distributed freight costs from the FSD are transferred to the settlement management posting engine in SAP S/4 for posting to the responsible cost collector based on the scenarios of SD or MM documents.
The cost of Transport is using these follow Key account in SES-MIRO and Settlement Document (ABD).
In TM side first you need to map the Charge types as relevant for processing the settlement management document for processing the distributed freight cost posting to Financial Accounting (FI).
Settlement – Freight Settlement – Integration for Settlement Posting – Mapping for Cost Distribution- Assign Transportation Charge Types to Condition Types
The Condition WT01 is the standard used for this process which is map in the Purchase Condition Type.
This follow customizing is used to setup the definition how the Cost allocation is setup for FI (General Ledger, G/Account, material Account).
Settlement- Freight Settlement – Integration for Settlement Posting – Mapping for Cost Distribution – Posting Using Settlement Management – Basic Settings for Creation of Settlement Management Docs
Based on the source document you defined which type of the process for want to allocation G/L account/ Material account.
In the Transaction WLFLTM2 we can open the Settlement Document searching by the Freight document Number, etc.
The Document is created based on the Cost distribution of the FSD once is settle from TM side with the Materials and Cost, based on the cost distribution:
This sample we have 2 material and each line have the cost open item 1 we can see the Condition type that was mapping with in TM side WT01.
In case of inbound freight cost posting, the VBD setup picks up the freight clearing entry based on the account key maintained in the pricing schema The inventory posting account is determined by the material and its attributes and determine whether it is posted to BSX or PRD.
For outbound freight cost posting, the settlement document picks up both the accounts from the pricing schema. The freight clearing account is picked up from the account key accrual field, and the freight expense account from the accounting key.
For outbound freight cost posting, if the freight cost components are to be posted to different GL accounts, then map TM charge types to both the condition types (which are SAP MM conditions) and the account posting keys that were set up for the settlement document type.
*Note in the tab Account assignment the values of FI objects you see is derived from the SD/MM documents that you can see in tab Basic Data B.
This document once is release to accounting will determine the FI objects are defined for the Key account / FI Objects in the Tab Account Assignment to FI document.
You can simulate before releasing it to check which FI objects will be used in the FI documents.
In case you need to develop you can use the follow BadI:
Settlement- Freight Settlement- Integration for Settlement Posting -Mapping for Cost Distribution – Posting Using Settlement Management – Business Add-Ins (BAdIs)
Additional BadI under :
Logistics – General -Settlement Managementà – System Enhancements – Business Add-Ins (BAdIs):
BAdI: Enhancements for Release to Financial Accounting – New
BAdI: Enhancements for Account Determination – New
Hope this help you!