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Former Member

Charging delivery fees

Hi,

It's a common practice to charge delivery fees in case of pharmacy wholesale distribution.It depends on the number of orders placed during the day before the cut off time period. It needs to be invoiced to customer either through invoicing process or through debit notes.

I wanted to understand what is the best practice for handling delivery fees in SAP. It cannot be in the sales order. Should it be put in the invoice directly or raising debit memo is the best option

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2 Answers

  • Oct 26, 2017 at 07:01 PM

    Best practice is definitely not to have a fee based on the number of orders. It just doesn't make any sense IMHO. I can understand if someone wants to charge a fee based on distance, urgency, weight or some kind of special handling (e.g. a gift wrap or uncommon size/shape). That is justified by additional handling or shipping cost. But number of orders... Why? What's the logic here? Would you charge a fee based on too few or too many orders? Neither makes sense, sorry.

    I believe the best solution here would be to just sit down and evaluate your business process. How much revenue it actually brings vs. causing inconvenience to the customers and technical difficulties in SAP? How much revenue would change if you used a different process?

    All other, more reasonable scenarios (like the ones mentioned above) for additional fees have already been covered on SCN, I believe. I'm afraid in this case you might be searching for a best practice solution to a bad practice process.

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    • Former Member Veselina Peykova

      I agree with this approach what you suggested and it really needs improvement from a business process perspective rather than finding solution in SAP for a bad process. One last thing that came up while reviewing the solution is that, SAP provides an option to redetermine prices at the time of invoice creation. Will this not negate the whole purpose of having a non transparent pricing if SAP itself allows re determination at the time of invoice creation? one can redetermine prices and taxes at the time of invoice creation !! There must be a specific reason for this i am sure, but i am not able to relate it with an example !

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    Former Member
    Oct 26, 2017 at 05:46 PM

    Hi,

    Both options are OK. It all depends how the business wants the scenario mapped. Creating a debit memo increases the process.

    Thanks.

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    • Former Member

      Problem is the logic for calculation is complicated. Hence wondering if we need to disturb the standard invoice process v/s custom build solution.