Shipment Costs as Delivery Costs 

Use

Regarding transportation processing, delivery costs can be considered for both standard purchase orders and stock transfer orders. The determined shipment costs are not directly transferred to the accounting department, but are included in the MM goods receipt document and added to the respective material. This scenario is relevant for company-internal shipments or for inbound shipments that are picked up from the vendor since the customer might get better conditions from his carriers.

The business process could be as follows:

●      Entering the standard purchase order with shipping notification

●      Editing the delivery from the delivery due list (VL32)

●      Generating an inbound shipment with the delivery

●      Creating the shipment cost document on the basis of the shipment

●      Posting the goods receipt with reference to the inbound delivery

Prerequisites

To add the shipment costs to the delivery costs in the case of incoming shipments, the following Customizing settings are required:

●      Shipment cost item categories

Under the Shipment cost types and item categories activity, set the Relevant for costing field to A = Relevant for calculating delivery costs (Delivery costs). This results in the shipment costs not being transferred directly into accounting. The accounting is done via the purchasing functionality for delivery costs.

●      Conditions in the purchase order

Under the Define condition types activity, set the Condition Category field to B = Delivery costs. In addition, select the Copy shp. costs field. The system only shows this field, if you have chosen delivery costs as condition category. In the purchase order, you have to enter the condition type in the item category section. However, you do not enter a value since this value will be determined by the shipment cost document and will then be automatically transferred to the goods receipt document.

●      Goods receipt

To find the relevant shipment cost documents, it is important to know the respective inbound deliveries. Therefore for incoming goods this must relate to confirmation-related goods receipts. Under the Set up confirmation control activity, select the GR-relevant and GR assignment fields for the appropriate confirmation control key (which is then entered in the purchase order).

Features

Further information can be found in Purchasing Delivery costs.

Example

The following shows an example of shipment costs being included in material costs. These shipment costs are shown as delivery costs.

      Purchase order: Material 4711, 200 pcs, DEM 20 per piece

Inbound delivery 1: 100 pcs (Date 1)

Inbound delivery 2: 100 pcs (Date 2)

Shipment 1 with inbound delivery 1: Costs DEM 250

 

Goods receipt for inbound delivery 1 – 100 pcs

 

Material costs          2000 DEM

Shipment costs         250 DEM

 

Overall costs posted

to the material account   2250 DEM

 

Unit costs that are included

In the material master     22,50 DEM

The assumption is that the stock included 50 pcs with unit costs of DEM 18.00 before this goods receipt was posted. After the goods receipt the stock would now include 150 pcs with costs of DEM 21.00 per piece:

50 pcs/ DEM 18.00        =    DEM   900.00

100 pcs/ DEM 22.50      =    DEM   2250.00

Total                                   =    DEM   3150.00  :   150 pcs = DEM 21.00/pc.

If the system had not found any shipment costs, the costs would amount to DEM 19.33 per pc.:

      50 pcs/ DEM 18.00        =    DEM   900.00

100 pcs/ DEM 20.00      =    DEM   2000.00

Total                       =    DEM   2900.00  :   150 pcs = DEM 19.33/pc.

Shipment costs of this kind are not included in the purchase order. Therefore, the system does not display these costs on the item category view of the purchase order.

 The system copies these costs during the goods receipt posting. The shipment cost processing  is carried out as if you had entered them in the purchase order item.

In general, such shipment costs are treated as planned delivery costs in purchase order processsing.