Logistics cost to be loaded on the purchased material

[vkpandey]

Hi,

We are implementing S/4 HANA embedded TM in our land scape. So far Outbound logisctis movement is concerned, as of now it seems to be fine. But in the inbound logistics process, we have a show stopper. It may affect our decsion to implement TM for inbound logistics process.

The brief of the issue faced -

We are procuring raw materials / consumables / packing materials etc from out suppliers. We want to implement TM for inbound process.

PO (ME21N)> Inbound delivery(VL31N) > [Freight unit > Freight Order > Freight settlement document > (NWBC)] Service PO +Service entry sheet(Automatically created) ]> Logistics invoice verification(MIRO) > Vendor Payment(F-53)

Now the concern is that suppose 10 qunatity of material MAT1 has been purchased. The purchase price is 125 INR / unit. Total logistics cost for this purchase is 315 INR.

So during GR, the total material cost should be - (10 * 125) + 315 = 1250 + 315 = 1565 INR. So effective landing price should be 1565 INR for 10 units of MAT1, or 156,50 INR / unit of MAT1. In other words, the inbound logistics cost should be loaded on the material.

Does SAP S/4 HANA embedded TM supports it? If yes, then please suggest how to do it? If no, then what is the alternative solution or workaround?

Thanks & Regards

Piyush Ranpura

[former_member630696]

Hi Piyush,

You need to activate Cost Distribution functionality in SAP TM.

Define Cost Distribution at item level. Assign the Cost Distribution profile to FO/FSD type.

Configure Agency Business Document settings in ERP

Once all the necessary settings is performed, when you post FSD, system will distribute the cost to each material and update Material Valuation Accordingly.

Refer below link for more information

https://help.sap.com/doc/saphelp_tm90/9.0/en-US/5b/5d73be618b4574ac8c9352045fa220/content.htm?no_cac...

https://help.sap.com/doc/saphelp_tm90/9.0/en-US/79/d0f8ff05c84ac18a24f124542269d3/content.htm?no_cac...

Regards,

Guruprasad