Free goods but want to freight cost updation upon GR

[Former Member]

Hi,

Scenario:

I have a PO with 20 line items and header freight cost.

There are few more items in PO which are ticked as free goods.

There is a stock of those materials with certain MAP.

Freight condition has been configured as vendor GR so that it gets loaded on materials upon GR.

Requirement is that

Upon GR of this PO,MAPshould get updated with the freight cost for those materials also which have been marked as free goods.

How this can be achieved ?

Regards,

manOO

[Former Member]

HI sapjuly,

The MAP will get affected / Chagned only when you buy and pay the vendor.

It makes more sense to update MAP when you buy mateiral. In case of Free goods, you are getting it free so the MAP should not get udated. On the other hand, Once you sell the material the MAP will get audjusted to FG stock.

Please reward if useful.

Thx,

MJ

[Former Member]

Hi MJ,

I agree to what you say.However this could very well be the requirement that someone receiving the items as free goods in a shipmentt but still he has to pay the freight cost which is defined as header condition.

My question is how can we load this freight cost on the materials which have been marked as free goods ?

In normal situation if we have configured header freight condition with a tick as Vendor GR,then at the time of GR, it loads this freight on the materials in that PO proportionately except for the items with free goods ticked in a PO.

How can I load the freight cost on these items(with free goods ticked in PO) also.

Thanks in advance.

Regards,

manOO

[Former Member]

Hi

If this is the case you give PO to frieght vendor for freight value & in remarks you mention reciving as FREE GOODS from vendor xxxxx & do GR load cost to material & pay to freight vendor. (this is not advisible, but one solution for your problem).

Other way post directly to vendor in FI where it doesn't upload to material cost.

In more way is to have a service entry sheet to freight vendor for tracking but here also it won't get loaded to material cost.

when you are using MAP it will get added to material cost, but whereas it is free of cost & this freight payment has to be caputred as PURCHASE OVERHEAD (since it is an expense) which i feel should be routed via SERVICE ENTRY SHEET.

Regards

Rang

[Former Member]

Hi Rang,

Thanks for the feedback.However service PO is out of scope as client do not want to go for servicees.

I could not understand your suggestion

<u>you give PO to frieght vendor for freight value & in remarks you mention reciving as FREE GOODS from vendor xxxxx & do GR load cost to material & pay to freight vendor. (this is not advisible, but one solution for your problem).</u>

I have to receive one material via purchase order as a free item but I need to pay vendor for the freight charges that will be incurred to ship this item along with all the other items in the same PO.

Can you please explain me further as what you mean to say in your post.

I should be able to load these freight cost on all the materials in PO including the material with 'free' indiactor.

In short upon GR MAP should affect with freight cost as there will not be value addition of the material since received as free.

Please suggest.

Thanks in advance

Regards,

manOO