Incoterm and partner

[Former Member]

Hi,

Can anyone explain the relationship between incoterm and partner function(carrier)?is it only linked to carrier? For eg: if I choose a 2 day ground for incoterm, and I have a carrier partner function & I maintain a condition type KF00 for freight with access sequence incoterms, so i guess this will be triggered in delivery and the freight will be calculated but how will the system know that the freight charge was applied by carrier partner function and invoice needs to be sent from carrier to Bill to during invoice? I guess invoice cannot be sent from carrier, since i am charging the customer for freight, and later the carrier will charge me.

[Former Member · Accepted solution]

Hi,

This is with reference to your above question, please note that if freight is being charged by the company to the customer directly ( Not dependent on Carrier/Service Agent) then KF00 condition type in the pricing procedure is sufficient for including freight charges.

However, if price is dependent on the carrier (i.e. Service Agent) and the same is billed from the service agent to the customer via the company then transportation module comes into play. All relevant settings have to be made;

IMG-> Logistics Execution-> Transportation

All shipment documents as well as shipment cost documents have to be configured. The pricing procedure in the shipment cost document will determine the price or cost of transportation.

The sales cycle will be as under;

Sales Order-> Delivery Doc-> Picking/Packing(if relevant)-> Shipment Document(With Planning Proposal PGI is done in background)-> Shipment Cost Document->Release to Billing on Shipment Completion (Automatic P.O. creation)-> Service Entry Sheet-> Invoice Verification

Kindly go through the notes available on SAP Library [ht

tp://help.sap.com/saphelp_47x200/helpdata/en/d5/2285347860ea35e10000009b38f83b/frameset.htm]

Hope the same was helpful, kindly award points if so.

Regards,

Vinu