6 thoughts on “If the material Price is 100 INR per 1EA and the Quantity is 10 EA. And, the Freight amount is 200 INR. Then what are accounting entries during Goods Receipt?”

1. Hello Sir,

   What if we don’t want to load freight charges on material inventory, mean in our configuration we have ticked the checkbox of Accruals for FR1 key. So in this case also BSX will be debited as 1200 or 1000 ?

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   • You can check the process when you don’t load on non-inventory

     Click to access delivery-cost-on-non-inventory.pdf

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     • Thanks a lot for Great Information Sir..

       I have one more doubt, what is difference between Freight clearing and Freight provision, and where we should use Freight clearing key and where Freight provision key?

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     • Freight Clearing account is like GR/IR Clearing. When the freight amount is loaded on Material or consumption account, that amount will be credited on clearing account during GR.

       Freight Provision is like Stock/Consumption account where the amount will be loaded which may be used very less as we mostly load the freight amount on Stock. You can check the below blog where I used Freight Provision. This will give clarity.

       Delivery cost on Non Inventory account in SAP Inventory Management by Ganesh Padala

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2. Thanks for Reply Sir..For Great Information..

   I have two more doubts:

   1. Can we set accrual key with Discount condition types like R000, R001, R002?
   2. What is the difference between Freight clearing and freight provisions?

   Thanks in Advance!

   Warm Regards,

   Rahul Chauhan

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   • 1. No need. Technically you can do but business process wise it is not needed mostly. Logically if you see that Discount is always linked to Material amount and mainly it is not a delivery cost so not needed.
     2. You can check the below example.

     Freight Clearing account is like GR/IR Clearing. When the freight amount is loaded on Material or consumption account, that amount will be credited on clearing account during GR.

     Freight Provision is like Stock/Consumption account where the amount will be loaded which may be used very less as we mostly load the freight amount on Stock. You can check the below blog where I used Freight Provision. This will give clarity.

     Delivery cost on Non Inventory account in SAP Inventory Management by Ganesh Padala

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