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Have you ever find yourself struggling to include Freight Costs from Purchasing Info Records when performing Cost Estimate for Raw Materials? In this blog, you will see how to perform step-by-step configuration to make that possible in SAP S/4HANA Cloud.


1. Set conditions into the PIR

1.1 Go to app "Change Purchasing Info Record" fulfill the parameters and press enter:

Figure 1: Change Info Record App


1.2 Go to Conditions:

FIgure 2: Conditions


1.3 In the conditions tab, add the Freight/Value 1 and the Amount:

Figure 3: Inclusion of Freight



2. Customizing (Manage Your Solution / CBC)

2.1 Go to "Manage Your Solution" or CBC and access the SSCUI/Configuration Activity "Define Origin Groups". There, you will add the Freight and Lending Cost Origin Group.

Figure 4: Define Origin Groups


2.2 The next step is to assign the Condition Types to Origin Groups. Please note that you must assign all Conditions you are using, in this case, FVA1and PPR0. Also, you must assign for all Valuation Variants you may need. Origin group for the gross price condition type PPR0 can be left initial.

Figure 5: Assign Condition Types


2.3 Assign Cost Elements to Cost Components. For that, there is the possibility for general assignment to Cost Component Group, using SSCUI/Configuration Activity "Define Cost Component Structure". In the following example, all Condition Types assigned to Origin Group YFC are assigned to Cost Component Group 104:

Figure 6: Define Cost Components



3. Configure Material Valuation for PIR

3.1 Access the SSCUI/Configuration Activity "Define Costing Variants", select the Costing Variant you are using and click Details:

Figure 7: Define Costing Variants


3.2 Go to Valuation Variant and check which Valuation Variant is being used:

Figure 8: Check Valuation Variant


3.3 Then you can access SSCUI/Configuration Activity "Define Valuation Variants per Plant", select the Valuation Variant for the Plant you are using and click details:

Figure 9: Valuation per Plant


3.4 Under the Material Valuation tab you must assign "Price from Purchasing Info Records" as first Priority for Strategy Sequence. As Sub-Strategy, only ‘Quotation Price via Condition Table’ or ‘Purchase Order Price via Condition Table’ will consider the Condition Types:

Figure 10: Material Valuation


After you have concluded all the steps above, you can access the app "Create Cost Estimate" and check that the Freight Costs are already included in Costing:

Figure 11: Cost Estimate


The purpose of this blog post is to present you with the possibility to add Freight/Delivery costs in the Cost Estimate. In addition to that, you can find more information in SAP Help Portal page: Material Cost Estimates, you can also follow other contents for SAP S/4HANA Cloud for Finance.


Please feel free to leave your comments or questions. You can also make suggestions if you want me to write about another topic related to Controlling for SAP S/4HANA Cloud.


Hope you find this article helpful