cancel
Showing results for 
Search instead for 
Did you mean: 

Cost allocation

Former Member
0 Kudos

Dear Expert,

We are working on the LSP scenario and have question on how cost allocation happens in ECC when the revenue and cost data is moved from SAP TM. Understanding is that Revenue data is moved through Forwarding settlement document and Cost data is moved through Freight Settlement document. Is this understanding correct. If yes, then what is the basis and how cost allocation will happens in ECC.

Thanks in advance

Thanks & Regards

Punit

Accepted Solutions (0)

Answers (1)

Answers (1)

Mrinal_K_Roy
Active Contributor
0 Kudos

Hi Punit,

In LSP scenario, data is moved from TM to ECC as below

  • Revenue : through Forwarding settlement doc (FWSD) as you stated
  • Cost : can be moved through Internal settlement document . Charge type in FO / FB shall be 'Internal'. Allocation in ECC happens through CO posting

With regards,

Mrinal

Former Member
0 Kudos

Hi Mrinal,

Thanks for the reply.

In case if the same forwarding house (which is used for creating forwarding order) has performed the transportation service, then the cost will be moved through freight settlement. Because in this case there will no internal settlement document. Is this understanding correct.

Thanks & Regards

Punit

Mrinal_K_Roy
Active Contributor
0 Kudos

Hi Punit,

There is no cost object like Sales order , delivery or material in ECC for a typical forwarding house / LSP. If they want to allocate cost for their own fleets from one dept to another dept or so , then that is an internal cost (i.e not FI Cost) and hence needs to be settled through internal settlement (i.e not by freight settlement).

With regards,

Mrinal