SAP Materials Management (MM) Module

City of Portland

PO_Freight Conditions
When buying goods, you can account for the cost of shipping in the purchase order by adding a line for freight to the overall PO, or by using Freight Conditions. Freight Conditions have the advantage of being invisible to the Goods Receiver while being visible to the AP Processor, and can apply to the overall PO, or be different for each line. There is a Conditions tab in the header area, and one in the Item area. This instruction uses Conditions at the item level, but the same steps apply to the header level. If you use Conditions at the header level, the conditions will apply to all lines in the PO equally. To set up Freight Conditions, go to the Conditions tab while creating or maintaining the PO (ME21N or ME22N).

Page 1 of 6

10/9/2009

SAP Materials Management (MM) Module

City of Portland

In the first blank conditions line, click in the CnTy column, then on the drop-down. A list of freight conditions appears:

Select FRA if the freight will be a percentage of the total price. Select FRB1 if the freight will have a fixed value.

Page 2 of 6

10/9/2009

SAP Materials Management (MM) Module

City of Portland

On the Conditions tab in the PO, you will now see a Freight % or a Freight (Value) row. Enter the percentage or the dollar value of shipping in the Amount column.

Page 3 of 6

10/9/2009

SAP Materials Management (MM) Module

City of Portland

When you select Enter, the Conditions tab will insert the freight line among the other conditions:

Page 4 of 6

10/9/2009

SAP Materials Management (MM) Module

City of Portland

Save the PO. Note that the quantity of this PO remains 50.35 USD. The Goods Receiver will see, and receive, only that quantity:

Page 5 of 6

10/9/2009

SAP Materials Management (MM) Module

City of Portland

Your AP processor will have a view in MIRO (called Goods/services items + planned delivery) that will break out the freight condition in a separate line. Payment of goods plus shipping will be allowed. Actual cost of goods will be maintained.

Page 6 of 6

10/9/2009