During a goods receipt for an inbound delivery, the system takes delivery costs from corresponding shipment cost documents into account. Shipment costs as delivery costs are used to determine the value of the expense of transport and therefore the correct transfer in the entry of goods. You can integrate the planning and execution of the inbound shipment to the concepts of delivery cost.

Consider a business scenario in which a purchase order (PO) for one material has the value of $1,000. During a goods receipt for an inbound delivery, the system takes the delivery costs from corresponding shipment cost documents into account. In my example, the cost of planning and execution of the transport that delivered the material is $200 (Figure 1). I explain how to include this cost in the materials management (MM) goods receipt.

Figure 1

An example of the process flow during the development of a goods receipt for an inbound delivery

Transportation processing delivery costs can be considered for both standard POs and stock transfer orders. The determined shipment costs are not directly transferred to the accounting department, but are included in the materials management (MM) goods (inbound delivery) receipt document. They are added to the respective material (FI and Controlling [CO]). This scenario is relevant for a company’s internal shipments or for inbound shipments that are picked up from the vendor.

Shipment costs of this kind are not included in the PO. Therefore, the system does not display these costs on the item category view of the PO. The system copies these costs during the goods receipt posting (Figure 2). The shipment cost processing is carried out as if you had entered them in the PO item.

Figure 2

Process flow of shipment cost as a delivery cost

In general, such shipment costs are treated as planned delivery costs in PO processsing. I walk you through the following steps that are necessary to set up shipment costs as delivery costs:

• Prerequisite steps
• Enter a condition type in a PO
• Create an inbound delivery
• Create an inbound shipment
• Create inbound shipment costs
• Post the goods receipt and display the document account

Prerequisite Steps

For the processes shown in Figure 2, you need to complete the following steps in the customizing settings:

1. Define the condition type (PO)
2. Enter values in the calculation schema for the corresponding condition type
3. Define shipment cost item categories (shipment costs)
4. Distribute the shipment cost to items

Step 1. Define the condition type (PO). Execute transaction code SPRO and follow menu path Materials Management > Purchasing > Conditions > Define Price Determination Process > Define Condition Types (Figure 3).

Figure 3

Condition types for freight value

Click Condition Type FRB1 and then click the detail (magnifying glass) icon, which takes you to Figure 4.

Figure 4

The Cond. category (condition category) field for delivery costs

In the Control data 1 section of the next screen (Figure 4), you define a new condition type for the delivery costs from the shipment cost document. Enter FRB1 (the standard condition type) in the Condit. type field. In the Cond.category field enter B (delivery costs).

Scroll down to the Control data 2 section of the condition type (Figure 5). Select the Accruals and Copy shp. Costs check boxes. You need to select these check boxes to determine the accounting document and to copy the values from the document of transport in the SAP system.

Figure 5

Settings in Control data 2

You enter a value in the Scale basis field to enable the system to interpret a pricing scale in a condition. For example, the scale can be based on quantity, weight, or volume. For my example, enter the value B (value scale).

Step 2. Enter values in the calculation schema for the corresponding condition type. Execute transaction code SPRO and follow menu path > Purchasing > Conditions > Define Price Determination Process > Define calculation schema (Figure 6).

Figure 6

The condition type in the calculation schema

For my example, use schema RM0000. Expand the Schemas folder and select the Control data subfolder. Select Schema RM0000. Double-click the icon beside the Control data folder (Figure 6).

The condition type in the schema of the PO needs to be marked as manual or automatic (Figure 7). To make the condition type manual, select the check boxes under the Manual column.

Figure 7

Select settings in the Manual, Statistics, AccKey, and Accruals fields in the procedure scheme

You also need to select the check box under the Statistics column. The default values in the AccKey (account key) and Accruals fields are FRE and FR1, respectively (Figure 7). The account key enables the system to post amounts to certain types of revenue accounts. For example, the system can post freight charges (generated by the freight pricing condition) to the relevant freight revenue account.

The system posts amounts to revenue accounts based on the parameters and settings of account determination defined for the company in the parameters of SAP MM. The condition type must be created with value 0 in the purchase order item before the goods receipt.

Step 3. Define shipment cost item categories (Shipment Costs). Execute transaction code SPRO and follow menu path > Logistics Execution > Transportation > Shipment Costs > Shipment Cost Document > Shipment Cost Types and Item Categories.

In the screen that appears (Figure 8), select the Define item categories folder. Click the Settlement rel. (relevant for settlement) field, and in the pop-up screen that appears, select A (relevant for settlement [delivery costs]). The values in the Settlement rel. field specify whether the shipment cost item is relevant for settlement delivery costs (A) or a G/L account (X).

Figure 8

Define an item category

In the Item category field, enter a value (e.g., 0001 for Transportation costs). You also need to populate the following fields shown in Figure 8:

• Pricing date: In this field you enter a value that acts as a rule that directs the system to determine the automatic proposal for the pricing date when an item is created. The available options are: 0001 Stage end (act/plan), 0002 Stage end (actual), 0003 Stage start (act./plan), and 0004 Stage start (act.).
• Settlement date: In this field, you enter a value that acts as a rule that directs the system to determine the automatic proposal for the settlement date when an item is created. The available options are: 0001 Stage end (act/plan) / 0002 Stage end (actual) / 0003 Stage start (act./plan) / 0004 Stage start (act.)
• Cost dist. (cost distribution): In this field you enter a value that shows the level of cost apportionment of shipment costs during account assignment. The options are C (delivery item) or B (delivery). When forwarding the shipment costs to Financial Accounting (FI) and Controlling (CO), you can determine the level at which costs are to be forwarded. Independent of the calculation basis, you can apportion costs at a more detailed (delivery item) or combine them at a more general level (Delivery).
• Generate PO: In this field, you enter a value that shows the frequency of generation of a PO. Leave this field blank because you do not want to generate a PO as it does not apply to this article.

Figure 9

Shipment status

Consider the following example. When used with other criteria, the distribute cost (enhancement V54KSFRC) value of the document (shipment cost) is $100.

If the weights of the individual delivery items differ considerably from each other (for example, a delivery item number 10 with 1 Kg and delivery item number 20 with 200 Kg), by distributing the value of the document shipment cost ($100) the value item number 10 applicable is 0 USD. In these circumstances you may need a different criterion than weight (for example, distributed by volume). You can make these distributions using program V54KSFRC. I recommend that you use program V54KSFRC if you want the distribution of the cost (shipment cost) in the delivery for productto be realized by a criterion different from the weight. For example, for volume or dimensions.

Enter a Condition Type in a PO

After you finish configuring the prerequisite settings, proceed to the created documents (Purchase Order). To enter a condition type in a PO, execute transaction code ME21N (Created Purchase Order) and follow menu path SAP menu > Logistics > Materials Management > Purchasing > Purchase Order > Create. In the screen that appears (Figure 10), enter a number of the supplier in the Vendor field. Select the Org. Data tab and populate the Purch. Org., Purch. Group, and Company Code fields. Enter details about the item in the Item field and click the Conditions tab. Click the insert condition type icon. Insert the condition type FRB1 Freight (Value) in the row in the lower section of Figure 10. The condition type is a statistical type. The condition type must be created with the value 0.

Figure 10

Enter a condition type

The creation of the inbound delivery depends on the Conf. Control field. You need to insert the option 0004 Inbound Delivery. The shipment costs as delivery cost is always needed for the document of delivery. To complete this step, click the item details icon and then select the Confirmations tab (Figure 11). In the Conf. Control field, select 0004 Inbound Delivery. To save the document, click Menu in the top left section of Figure 11 and then go to Purchase Order > Save.

Figure 11

Confirmation control

Create an Inbound Delivery

To create an inbound delivery, execute transaction code VL31N (Create Inbound Delivery) and follow menu path Logistics > Materials Management > Purchasing > Purchase Order > Inbound Delivery. In the screen that appears (Figure 12) enter the purchase document in the Purchase Order field. In the Delivery date field, you can insert the delivery date registered in the document purchase order or some top date.

Figure 12

Create inbound delivery

After you press Enter, the details of the Inbound Delivery document appear in the next screen (Figure 13).

Figure 13

The Error Log and Incompleteness options indicate the required fields to complete for creating an inbound delivery

Confirm the quantity received in the Delivery quantity field. Enter the date of receipt of goods in the Delivery date field. After you enter the values, download the document by following menu path Inbound Delivery > Save. The system then displays a log that shows you the inbound delivery that was created (Figure 13).

The configuration of the document of inbound delivery can change in every company. If necessary, enter additional fields. The Error Log and Incompleteness options indicate the required fields to complete for creating an inbound delivery.

The log indicates incomplete fields. The log system shows you that you need additional values (Figure 13). To validate the Incompleteness log click Menu > Edit > Incompleteness.

Create an Inbound Shipment

To create an inbound shipment, execute transaction code VT01N and follow menu path Logistics > Logistics Execution > Transportation > Transportation Planning. This action displays the screen shown in Figure 14. When you create shipments, you can choose deliveries according to certain selection criteria and then assign them to the new shipment. For my example, enter 0001 City 1 in the TransportPlanningPt (transportation planning point) field. In the Shipment Type field, select 0010 Inbound Shipment from the drop-down list of options. Click the Deliveries button, and in the pop-up screen enter a delivery date in the Inbound delivery field for the document you created in the “Create an Inbound Delivery” section (e.g., 29.9.2015 and 00:00).

Figure 14

Create an inbound shipment

Figure 15

The overall status of the inbound shipment cost calculation

Create Inbound Shipment Costs

To create inbound shipment costs, execute transaction code VI01 and follow menu path Logistics > Logistics Execution > Transportation > Shipment Costs > Create. In the screen that appears (Figure 16), select Standard SD-shipment from the drop-down list of options in the Shipment category field.

Figure 16

Create shipment costs

In the Shipment Number field enter a value (e.g., 1670). Enter 0001 Standard in the Ship. cost type (shipment cost type) field. In the Pricing date field, enter the current date if this field is empty. After you enter all the values, press the Enter key to display the screen shown in Figure 17.

Figure 17

Create inbound shipment costs

The values or prices in the shipment cost can be determined automatically or manually. For this example, I use the manual method. Click the item details icon (Figure 17).

Click the condition icon (Figure 18).

Figure 18

The condition icon

In the next screen (Figure 19), enter FB00 in the row under the Cn Ty (condition type) column and Freight Class in the row under the Name column. Enter the value 3,600.00 in the field under the Amount colum.

Figure 19

Enter a condition type and name

Post the Goods Receipt and Display the Document Account

To post the goods receipt, execute transaction code VL32N (Inbound Delivery). In the screen that appears (Figure 20), click the Post Goods Receipt button. Another option is to follow menu path Edit > Post Goods Receipt. After you post the goods receipt, the accounting document is created.

Figure 20

Post the goods receipt

To display the accounting document generated, execute transaction code VT33N. In the screen that appears (Figure 21), click the document flow icon. In the pop-up screen, click the Display document button.

Figure 21

Display the goods receipt

In the next screen (Figure 22), click the Accounting Documents... button.

Figure 22

Display accounting documents

Figure 23

Display the accounting documents

Diony J. Ruiz R.

Diony J. Ruiz R. is an SAP architect and senior consultant at Group Intellego. He has 12 years’ experience in SAP Sales and Distribution and SCE (Supply Chain Execution), Logistic Execution (LE), transportation, and warehouse management picking. He has additional knowledge in SAP MM (Materials Management).

He has worked in industries such as manufacturing, pharmaceuticals, logistics, third-party logistics distribution, services, public government, chemical, maritime and customs, metallurgy, automotive, and mining industries.

His roles have included SAP Consultant Specialist, Project Leader, and Area Leader.

He is an SAP Certified Professional.

You may contact the author at dionyruiz@gmail.com. If you have comments about this article or publication, or would like to submit an article idea, please contact the editor.