How to bifurcate the price diff as "price diff freight" and "price diff material" at GR and IR both?

[former_member765150]

Hi Experts,

I have a question regarding below scenario:

- Raw material maintained at std. cost (10 INR) and actual costing is active.

- there is freight condition involved in the PO is created for 10 qty. price 11 INR/unit freight 2 INR/unit

At GR

At IR - there is difference in price of Material and freight in invoice its Material 12 INR/unit and freight 4/unit, so entry is like below

Now Price difference account capture the price difference for material and freight both, and we are loosing the visibility of actual freight paid.

and If we handle this using unplanned freight cost to be posted to separate GL (using unplanned freight config ) then it will not be the part of actual costing at ML closing so the actual price for material will not be correct

the requirement here is to track the actual freight and capture it for actual costing, how it can be achieved.

Is there any way to bifurcate the price diff as "price diff freight" and "price diff material" at GR and IR both .

Thanks in Advance

Vikas Pandey

[former_member413592]

Hello Vikas

Please clarify if the freight is inventoried in your scenario. If that’s the case, it should be part of the standard cost. Also who are you paying freight to - the merchandise vendor or a separate freight vendor?

Regards

Anshul

[former_member413592]

Since freight is part of inventory, both freight and material price variance are relevant for actual coating and so a bifurcation may not be necessary. Let me know if this makes sense?

[former_member765150]

Thanks for reply Anshul,

yes, its getting inventoried, and its the part of standard cost, but freight keep on fluctuating for each transaction.

and per freight vendor is concerned, both cases are possible here.

Regards