The SAP S/4 integration for freight cost distribution processing occurs in the following stages:
Integration for Freight Cost Processing
- Transfer the transportation costs as "delivery costs" for the material (inbound scenario).
Have the transportation costs flow to material valuation.
- Post the transportation costs back at the level of the sales order/CO-PA/CO objects that are responsible for the shipment costs (outbound scenario).
Post all the freight costs at the level of sales order or other controlling object, or CO-PA to track the costs associated with the shipment.
Freight Order Distribution: Based Upon Weight
In the example in the figure, there is a freight order with three charge codes: Basic Freight (5000 USD), BAF (500 USD), and CAF (-125 USD).
Each delivery consists of only one item with the weight specified as 5000 KG for Delivery 1, 10000 KG for Delivery 2, and 7000 KG for Delivery 3. The distribution is performed based on the weight for each charge type. The total weight of the freight order is 22000 KG.
To perform the calculation, you first calculate what percentage of the total weight that each delivery represents. Then, you multiply the percentage by the costs.
The cost distribution is calculated as follows:
Delivery 1
% of Total Weight = 5000/22000 * 100 = 22.7%
Basic Freight = 5000 * 22.7/100 = 1135.00 USD
BAF = 500 *22.7/100 = 113.50 USD
CAF = -125 USD * 22.7/100 = -28.38 USD
Delivery 2
% of Total Weight = 10000/22000 * 100 = 45.5%
Basic Freight = 5000 * 45.5/100 = 2275.00 USD
BAF = 500 * 45.5/100 = 227.50 USD
CAF = -125 USD * 45.5/100 = -56.88 USD
Delivery 3
% of Total Weight = 7000/22000 * 100 = 31.8%
Basic Freight = 5000 * 31.8% = 1590.00 USD
BAF = 500 * 31.8% = 159.00 USD
CAF = -125 USD * 31.8% = -39.75 USD
Analyze Postings for FSD and Settlement Management
The figure shows the posting for the outbound deliveries. The documents that are created include financial accounting for the G/L, controlling document for the cost center-related postings, and profitability analysis.
To check if all amounts and postings are correct, you can access the Service Entry Sheet of the respective Purchase Order (Step 6a) for the freight costs postings and the Settlement Management Document for the distributed amounts and postings (Step 6b).
To access the Settlement Doc overview and the accounting documents, in the SAP Fiori launchpad, go to Settlement → Display Cost Distribution Documents or use the backend transaction WLFLTM2.
Here you can enter the freight settlement document (FSD) ID and execute.
In the Overview of Freight Cost Allocation Documents screen, in the Freight Cost Allocation Documents section, click the document number to open it.
Review the data in the Basic Data and Flexible Overview tabs.
In the case of cost distribution for an outbound scenario, you can look onto the CO-PA profitability segment. Here you can monitor the assignment of the distributed costs to the sales order item and the respective customer assigned to the order. This provides an overview of the revenue to transportation costs relationship for the respective order.
In the case of cost distribution for an inbound scenario, the distributed costs get posted into material valuation and are assigned to the respective order material price analysis. You can access the detailed distributed amount on material level:
To access the price analysis for the respective material, note the material number from the Settlement Doc overview and go to transaction MM03. Enter the material number, click Select View(s) → Accounting 1→enter the plant the material is assigned to. In the Accounting 1 tab of the material, click the button "Mat. Price Analysis". The "Prices details view" depicts the overview of the inventory and price development for the material, which also shows the distributed freight costs of the settlement document overview.