Dear Friends:
This blog article will examine “Unplanned delivery costs,” the many approaches that may be used for various business scenarios, and a real-time scenario that demonstrates how to handle unplanned delivery expenses.
Unplanned delivery costs:-
Charges that are directly put in the logistics invoice verification but weren’t known at the time of creating the purchase order (MIRO).
According to the needs of the business, one can select the appropriate approach among 3 ways to submit unanticipated delivery charges: –
1. Unplanned delivery costs field in transaction code – MIRO
2. Direct posting to GL account
3. Subsequent debit posting
1. Unplanned delivery costs field in transaction code – MIRO:-
SAP has created a separate box for entering the unanticipated delivery expenses. You can directly insert the additional expenses in this field. These extra expenses are either allocated among the line items on the invoice (material account) or posted to a different GL account.
The following approach can be used to choose whether to post the extra charges into a different GL account or distribute them among the invoice items:
SPRO – Materials Management – Logistics Invoice Verification – Incoming Invoice – Configure how unplanned delivery costs are posted.
Configure how unplanned delivery costs are posted
Following the aforementioned approach, the appropriate solution can be selected based on the needs of the firm for a company code. view below
Options for Direct posting of unplanned delivery costs
- Distribute among invoice items:- When this option is chosen, the additional costs are distributed among all the invoice items.
- Different GL line:- When this option is chosen, the GL account has to be maintained for automatic account determination under the transaction/event key UPF (unplanned delivery costs) in transaction code – OBYC.
2. Direct posting to GL account:-
It is important to activate direct postings in order to directly deposit the unanticipated delivery expenses to the GL accounts and material accounts. Use the following to enable direct posting to GL accounts and material accounts.
Path – SPRO – Materials Management – Logistics Invoice Verification – Incoming Invoice – Activate direct posting to GL accounts & material accounts.
Activate direct posting to GL accounts and material accounts
After executing, the following options are available:-
- Dir. Posting to GL = Active
- Dir. Posting to material = Active
The two options mentioned above are the second posting option for unforeseen delivery charges. The fees must be manually submitted to specified GL accounts if the direct posting to GL accounts feature is enabled.
3. Subsequent debit posting:-
Within the logistics invoice verification function, it is possible to add more debit amounts to an invoice that has already been posted. With the posted quantity remaining unchanged, this function is used to correct the invoice amounts.
Although the quantity is unaffected, these extra costs have an impact on the value of the earlier bills that were posted. With the consecutive debit feature, you can add more expenses without changing the quantity. For instance, customs fees etc.
Now, lets discuss a real-time scenario.
20 quantities at a cost of 160/- each are the subject of a purchase order. The materials, GR/IR account, and vendor all have the reference number 1000100. The materials are assigned to GL-400102.
Vendor delivers 20 quantity and the goods receipt document is created.
Document 1 :- Goods Receipt
Debit : 400102 – Inventory 3200/-
Credit : 100102 – GR/IR clearing A/c 3200/-
GR/IR – MIGO
Vendor sends the invoice for 20 quantity with the price of 160/- each.
Document 2 :- Invoice Receipt
Debit : 100102 – GR/IR Clearing A/c 3200/-
Credit : 1000100 – Vendor A/c 3200/-
Invoice Receipt – MIRO
Vendor now understands that a $100 surcharge should have been posted.
Let’s look at the postings for each of the possibilities below one at a time as we’ve already spoken about the options that are available to post the unexpected delivery expenses.
Option 1 : – Unplanned delivery costs field – Distribute among invoice items
Complete all required fields after running the MIRO transaction code, then fill the PO reference field with the purchase order number.
Distribute among invoice items – 1
After providing the required information, select Details from the menu, then type the extra expense in the Unplanned Delivery Costs field. Look below.
Distribute among the invoice items – 2
You can now see the simulation result in the screenshot below, where you can actually see how much money was allocated to each invoice item. I’ve got only one thing down here, and it goes entirely to that account.
Distribute among the invoice items – Simulate
Option 1 : – Unplanned delivery costs field – Different GL Line
As indicated below, we must assign the GL account in Automatic account determination utilising transaction code – OBYC against transaction/event key UPF (unplanned delivery charges) in order to post to a distinct GL line as opposed to distributing among the invoice items.
OBYC
Additionally, we must set the posting of unforeseen delivery expenses (path is already mentioned above). You must choose option 2 (different GL line), as shown below, in order to post to a specific GL account.
Options for Different GL line
Enter the required information using transaction code MIRO in the basic data tab, the PO number in the PO reference tab, and the amount in the unexpected delivery cost field under the details tab. To view the posting, simulate the paper.
Different GL simulate
Option 2 :- Direct posting to GL account
Input the relevant information in the basic data page, then, as shown below, enter the GL account and amount under the GL account tab to directly post unanticipated delivery expenses to a GL account.
Direct posting to GL account
To see the posting, simulate the document right now. Costs for unanticipated deliveries are immediately posted to the GL account, as seen below.
Direct GL posting – Simulate
Option 3:- Subsequent Debit posting:-
Additional charges are added to the already posted invoices using subsequent debit without changing the quantity. Go to MIRO and choose subsequent debit under the transaction field as shown below to post the subsequent debit.
Subsequent debit
Enter the relevant information under the basic data tab in the document header after choosing the subsequent debit, then enter the PO number under the PO reference tab as shown below.
Subsequent debit posting
Then, as indicated in the photos below, enter the amount (extra fees) in the unexpected delivery cost area under the details tab.
Subsequent debit posting details tab
The distribution of unscheduled delivery costs to invoice items or other GL accounts will depend on the setup (define how unplanned delivery charges are reported) when you click on simulate. The extra expenses are recorded in a different GL account listed below.
Subsequent debit Simulate
Conclusion:-
Unexpected delivery expenses happen when we don’t have a firm estimate at the time the PO is created. They are instantly entered, as was mentioned previously, in the logistics invoice verification. There are various ways to record unforeseen delivery charges depending on the requirements of the company, and we have discussed them all above.