Shipment Cost Document Currency conversion for PO Item Delivery Cost
Shipment cost incurred can be loaded to inventory cost during posting of GRN either from inbound delivery or MIGO. In such cases , delivery cost entered in the shipment cost document can be in a currency that is different from company code currency and PO currency.
Eg : Material PO in SGD , Company code currency : EUR and delivery cost (Freight forwarder currency) is booked in USD.
In such cases , delivery cost is calculated using the following logic,
- Delivery cost is converted to PO currency (in the above example , USD --> SGD)
- Total cost (Material Cost + Delivery Cost ) is converted to Company code currency (SGD --> EUR) and entries are posted
Sample Accounting entry
Dr : Inventory Account
Cr : GR/IR Clearing account
Cr : Freight Clearing account.
For the above scenario to work the following prerequisite should be meet.
1. Exchange rate should be fixed in PO.
2. Forward and backward exchange rate should be maintained in OBBS.
if the above prerequisites are not meet , delivery cost is ignored and only material cost is booked during GRN.
* If the currency in the shipment cost document is identical to
* the local currency, we use 'CONVERT_TO_FOREIGN_CURRENCY'. This
* is necessary, because later in form routine 'BETB_ERGAENZEN'
* (LEINRF2N), betb-kwert (=l_vtfkla-netwr) is converted back to
* local currency. The fixed rate must be used, otherwise we would
* have a difference in the local amout (PO history) and the value
* in the shipment cost document.
Functional Module : SD_SCD_PO_ITEM_DELIVERY_COSTS
Manage Folder Structure
This document is only for registered users
Please register with us for reading this documentation.
This document is part of paid documentation. Please get it touch with us for accessing this document.