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Remove Freight in MIGO

Dec 07, 2017 at 04:43 AM

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Former Member

Dear Guru(s),

I have a query regarding freight in MIGO level.

My client have a requirement to input 2 kind of freights in PO level, but when vendor delivery the goods to warehouse, only 1 freight applied. Meaning when warehouse accept the goods, they need to decide which freigh that already used to deliver the goods.

Information in PO:

Information in MIGO:

Is there any ways to remove FRC1 in second line without changing the Purchase Order?

Any suggestion?

Thank you,

Kind regards,

Agnes

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migo.jpg (62.7 kB)
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3 Answers

Dibyendu Patra Dec 07, 2017 at 05:07 AM
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Doesn't it violate vendor's terms and conditions ?

When you create purchase order, you have entered the both delivery cost conditions, that means that is decided by vendor and you are agreed that vendor will be charged two delivery costs for the purchase order. Now if you decide to pay only one delivery cost, then purchase order has to modified, else you have data inconsistency in PO and goods receipt. It is not possible to change these details during goods receipt. But I have still one question, does it make sense to enter same condition type with two values in PO condition?

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Former Member

Hi Dibyendu,

In this case, we have an agreement with the vendor that we mentioned to use 2 kind of transportations (Land and Sea). For example we need to order sparepart from other country and mention 2 kind of freights in purchase order.
In any ways, the weather is not so good and the vendor need to deliver the sparepart via land instead of via sea.

When the warehouse receipt the sparepart, they will choose the freight in MIGO. Because only the warehouse person know which transportation used.

Yes, you can repeat condition type in PO item level. Vendor will charge 1 delivery cost only.

We can not modify the purchase order, because it will different with agreement.

Any other suggestions?

Thank you.

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Purchase order is a legal document to vendor. There should not be any difference between agreement of purchase order and goods receipt. Even the delivery cost is finalized in purchase order level only, this is how system is designed and that is the reason there are no option to change the delivery cost during goods receipt, it will always follow the details from purchase order.

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Former Member
Dibyendu Patra

Hi Dibyendu,

I already said that to the client, but they still insist with the requirement.

Anyways, thanks for answering.

Regards,

Agnes

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Jürgen L
Dec 07, 2017 at 08:54 AM
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That is a poor business case as it is unknown how much the material costs, another vendor could potentially be cheaper.

Certainly the vendor knows within hours (maybe a few days) after the order from where he is going to delivery, as he needs to plan his activities as well. So your buyer could request this information in an order confirmation or latest with an advanced shipping notification, which gives him still time to adjust the PO before a receipt is done.

We have similar cases when we procure from global vendors, but this is not effecting the price, we get the agreed price no matter from where it is delivered. But for European trade reporting (INTRASTAT) we have to know the dispatch country, which means we need to add a partner role GS in the PO, and this also requires a change of the PO if it is not known at the time of order creation

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Jürgen L
Dec 07, 2017 at 07:17 AM
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MIGO does not allow to change a freight, that's just a fact, any change to that would be a modification.

I assume that your receivers were able to take such decision in the legacy system, most receivers I worked with around the globe would neither have the information to make such decision nor would they have the rights to change the purchase order.

Why is the buyer not able to make the right entry when he creates the PO?

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Former Member

Hi Jurgen,

In this case, freight cost is conditional. During the transaction, buyer and vendor can not decide which transportation that will be used.

I agree with you, the receiver shouldn't changed any price condition during MIGO.

This is just an unique case.

Thank you,

Agnes

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