[sap-log-mm] Frieght Purchase Orders

Posted by Sap Land Sunday, 25 September 2011 01:20

Posted by manojr
on Sep 25 at 10:58 AM

Hi ,
We have separate Logistics ( Frieght ) and Material Procurement Teams here in our procurement department.

Scenario is as below.
We procure large equipments for our EPC business. Generally equipment supplier and transporter are different. so when material procurement team creates a purchase order, they are not generally aware of transportation costs needed since its MTO scenario where equipment manufacturing might take 5-6 months.

so once vendor confirms that equipment is ready for dispatch, procurement team informs logisitcs team to arrange for transporter to transport equipment to our premises.

Then Logistics team negotiates with transporters and chooses one of them . A transport purchase order against transporter is created which has freight charges and service taxes included .

But now this cost doesn't add to material Value and its giving us wrong valuation of material. So is there any better way to handle this?

Thanks
Manoj

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