Freight not to be loaded on the Material Cost in Purchase Order

[Former Member]

Hi,

For Purchase Order, we want to configure a scenario where in we want the freight not to be loaded on the Material Cost.

Where need to change in the configuration do achieve the same.

Please guide.

Regards,

PK

[Former Member · Accepted solution]

HI PK,

Go to Tcode M/08 > Select your Schema-> NOw here in front of your freight condition, mainatin Account key and accurals.

Now create a fresh PO.

Do the GR, now here you can see that freight charges wont be incorporated in the material cost.

Hope this helps.

Rgds.

Utsav

[Former Member · Accepted solution]

Thanks Utsav for the reply.

The current configuration for freight is:

AccKey: BLANK

Accruals: FR1

The FI Documents are :

MIGO:

24340000 Paper Stock 650 BSX

13110100 GR/IR-ext proc 600.00- WRX

13112400 Freight Clearing A/c 50.00- FR1

MIRO:

13000600 Ghatge Patil Transports Ltd. / 560027 Bangalore 650.00-

13110100 GR/IR-clearing - ext procurement - Dom 600

13112400 Freight Clearing A/c 50

What should I maintain in AccKey (FR1 or someting else)

And what would be the FI Documents if we do the changes

Please guide.

Regards,

PK

[Former Member · Accepted solution]

HI,

Maintain Account key as FR1 in your Schema.

Now go to OBYC, under transaction event key FR1, maintain the G/L account.

Take help of FInance team for creating G/L account.

Rgds

Utsav

Edited by: Utsav.agra on Aug 17, 2010 2:04 PM

[Former Member · Accepted solution]

Hi Utsav,

I have maintained FR1 both in Account Key & Accruals.

The G/L assigned to FR1 in OBYC is 13112400 Freight Clearing A/c, (Account Group is CULB - Current Liabilities, and the nature is BALANCE SHEET)

Still the frieght amount is getting loaded on the Material

The documents are:

MIGO

24340000 Paper Stock 650.00

13110100 GR/IR-ext proc 600.00-

13112400 Freight Clearing A/c 50.00-

MIRO

PK01 Local Vendor 650.00-

13110100 GR/IR-ext proc 600.00

13112400 Freight Clearing A/c 50.00

The condition type ZFR1 Freight - Value is created as below:

Cond. class A Discount or surcharge

Calculat.type B Fixed amount

Cond.category B Delivery costs

Accruals in control data 2 - checked.

Please help.

Regards,

[pardeep_malik · Accepted solution]

HI PK,

1. New condition type to be created by copying the standard condition type FRA1/FRB1/FRC1

New condition type ZFR1 created by copying FRA1 - M/06.Accrual flagged in this condition type same as FRA1 and Condition category of the new condition type should be Blank and maintain X-Negative value in the plus/minus field. Accrual must be flagged.

2.New account key ZR1 created

OLME -- >conditions -- >Define pricing Determination process -- >Define Transaction/Event keys

3.Assign this condition type to pricing procedure - M/08 .Also assign transaction key ZR1 .

80	1	FRA1	Freight %	70	   	X						FR1
80	2	ZRA1	Freight  in spl GL	70	   	X					FRE	ZR1

4.GL account maintained in OBYC for this new account key -ZR1

Maintain same conditions for FRA1 and ZFR1.

5. Goods receipt debits freight amount to separate account

Inventory Acct - 100 Dr

GR/IR - 100 Cr

Frght Clr Acct - 20 Cr

Frieght payable - 20 Dr

6. At the time of MIRO

Vendor - 120 cr

GR/IR - 100 Dr

Frght Clr actt - 20 Dr

Hope Help U !

Regards,

Pardeep Malik

[Former Member · Accepted solution]

Pardeep,

I have the same type situation where I need to hit vendor in GR for late devery discounts. I tried setting up your Freight scneario just as a test and I cannot get it to post to a vendor. I set up OBYC for ZR1 to point to vendor recon account and I get an error message in MIGO "Account 2110.0000 for trans./event key ZR1 is a K control account"

All I can seem to do is point OBYC to GR/IR or other expense accounts. can you explain what I may be missing.

Thanks

Mike

[Former Member · Accepted solution]

What release are you on?

[BijayKumarBarik]

Hi,

In t.code: M/06, select your freight condition type & select in condition category B for delivery cost or F for fright cost & save. So that freight cost is not added to inventory. In Calculation Schema ( M/08) for freight condition type maintain acct .key & accu. Key.

Regards,

Biju K

[Former Member]

you need to change in calculation schema. maintian acuural key for fright so it will go to separe GL account