Monitor Accrual Postings
Using the Monitor Accrual Postings - Freight Documents app, you can monitor your freight orders and freight bookings to post accruals. You can confirm a freight order / booking for accruals posting. The confirmation confirms that the charges for a freight document are a correct reflection of the planned costs to be paid to the carrier. In a second step you post the transportation costs to Financial Accounting.
The system sets the posting status to
Posted when the posting is successful or to
Posting Failed if it encounters errors during posting. In the Errors view, you can show the list of freight documents that have a posting status of
Posting Failed. In the Posted view, you can see the list of freight documents that have a posting status of
The Monitor Accrual Postings - Freight Documents app allows you to perform the following tasks:
Confirm transportation costs for posting to financial accounting for accruals
View freight documents that are successfully posted to financial accounting
Cancel postings for freight documents that are successfully posted to financial accounting
Monitor freight documents that have errors when you post them to financial accounting
Display the errors that the system encountered when it posted your freight documents
Post or cancel posting for freight documents for which the system encountered errors during posting
In a freight order or freight booking, charge calculation results are stored in a hierarchical table on the Charges tab. The charge items and charge lines in the hierarchical table correspond to the level at which the system determines the freight agreement and calculation sheets. The system specifies various attributes corresponding to the charge lines and thereby allows you to analyze which and how charges have been calculated.
In the posting process the system creates a service purchase order (PO) and service entry sheet (SES) in MM for carrier settlement and at the same time the system also posts the freight cost to material valuation for an inbound process or expense for an outbound process.
If you receive invoices with unplanned costs associated with freight orders, you can capture the same in the invoice document for the business user to be able to review the invoice and be able to do the further processing associated with the invoice (i.e. review the unplanned costs in the invoice, approve or reject the invoice or perform invoice reduction and post the invoice to financial). However, you cannot change or delete an existing invoiced charge.
You can add an independent freight charge for a freight document and carrier or service provider combination, even after you have verified the existing charges in an invoice. You can subsequently confirm the newly-added freight charge for posting accruals. However, you cannot change or delete an existing invoiced charge. Also, you cannot include a dependent charge for a charge that is already invoice verified.
Watch the simulation Settle Freight Order to learn more about the system-related activities.
For the carrier settlement, the invoice received from the carrier is finally verified against the costs calculated in the freight document, or for the carriers, that agreed to the automated invoice settlement - you can use the Evaluated Receipt Settlement (ERS) scenario. A credit memo can be issued for the carrier in this scenario:
- Invoice verification:
As soon as the carrier invoice is received, the accounts payable accountant can post it with reference to the freight order. The expected transportation costs calculated in the freight order are compared with the amounts of the carrier invoice. Blocked invoices (due to discrepancies) can be released by the purchase manager using a workflow.
In the invoice verification process, the verification is done against the following references:
- Reference document category: Freight Order
- Freight order: <Freight Order Number>
Another option to locate the freight order is to use the search help and enter the carrier.
When the carrier invoice is created, the posting status in the freight order changes from
- Evaluated receipt settlement (ERS):
For carriers that have agreed to the automated invoice settlement, the ERS scenario is used where a credit memo is issued.
The Accounts Payable Accountant (Freight Cost) can post an invoice for a freight document and carrier or logistics service provider combination at the level of a charge element. They can review the amounts and quantities associated with a freight charge element during invoice processing. When they post an invoice for any charge, the system changes the posting status of the freight charge to Invoice Verified. For a price variance, the system automatically distributes the price difference at the level of logistics document and delivery item in the freight document. The system creates a freight cost allocation document for a price variance in a freight invoice. It then automatically posts the price difference to an expense or material account depending on the business scenario. You will automatically get a price variance when you enter an unplanned freight cost for an invoice. This price variance is managed similar to price variances of planned costs. Note, that the system doesn’t update the freight document with the unplanned freight charge.
Configuration for Freight Settlement
In the area of freight settlement there are two configuration activities:
- Assign MM integration settings to charge types
In this configuration step, you assign a valuation class, an account assignment category, and a condition type to a charge type. The system uses this assignment when it creates a service product from a charge type. The valuation class helps in the account determination process when you post freight cost accruals.
- Assign default plant for company code
In this configuration step, you specify a default plant for a company code. When you post a transportation cost, the system creates a service purchase order and a service entry sheet to pass the cost to Financials. When you have a freight order that combines deliveries out of multiple plants belonging to the same company code, the system requires the default plant information to create the service purchase order item.