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Process documentation Shipment Cost Settlement with Service Agent 

Purpose

The settlement of shipment costs with the service agent is carried out per shipment cost item.

Settlement includes:

  • Assignment and forwarding of the shipment costs to FI and cost accounting for creation of accruals and posting of payables
  • Automatic settlement using the self-billing procedure or manual settlement with the transportation service agent

Prerequisites

You can only carry out settlement for shipment cost items that have already been calculated.

The necessary settings in Customizing must also be made. This includes maintaining the account assignment category or the settings for G/L account determination. You can make these settings in the IMG under Logistics Execution

® Transportation ® Shipment costs ® Settlement.

Process Flow

  1. Account assignment
  2. During account assignment, the system carries out the two following functions simultaneously:

      • G/L account determination

    First the system determines the correct G/L account in FI for every individual shipment cost item.

      • Assignments for cost accounting

    The system also determines the accounts in cost accounting. Account assignment can be carried out at several levels, depending on how closely you want to monitor costs.

    1. Release or transfer to financial accounting

    After account assignment, you can start transferring to financial accounting. This phase involves two stages that can be carried out either consecutively or simultaneously. See also

    Transferring Shipment Costs to Accounting.
      • Purchase order determination

    Transfer to accounting for the creation of accruals requires a service entry. Every service entry sheet is based on a purchase order. This purchase order must first be created in purchasing for the service agent. The first stage in the transfer involves the system determining these purchase orders according to certain settings.

    If several possible purchase orders were selected, the system sorts them according to the following criteria:

          • According to date type (ascending)
          • According to validity period start date (descending)
          • According to validity period end date (ascending)
          • According to purchase order number (ascending)
          • According to purchase order item number (ascending)

     

      • Creating the service entry sheet and creating accruals

    The second stage in the transfer involves creating the service entry sheet that refers to a purchase order. Acceptance of services performed is posted and an accounting document is created in FI for creation of accruals. The system creates further subsequent documents in FI.

    1. Invoice creation
      • Self-billing procedure (Evaluated Receipt Settlement procedure -ERS)

    Using this procedure, you can settle the shipment costs with the service agent without having to receive an invoice. You can select between several settlement periods. You transfer the shipment costs that were calculated to Accounting.

    I IInvoice verification is carried out by the service agent. If the service agent finds errors, you can post these as subsequent debits.

    – Manual invoice check

    When the service agent receives the invoices, you can also carry out an invoice check manually and create the invoices manually.

    The following figure illustrates the settlement process:

     

    This graphic is explained in the accompanying text

     

    See also:

    G/L Account Determination

    Assignments for Cost Accounting

    Purchase Order Determination

    Creation of Accruals

    Self-billing Procedure

    Manual Invoice Verification

     

     

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