3579444 - How is the Freight distributed in a Sales Order and the Corresponding Invoice

You created a Sales Order with multiple Items and different quantities and added a Freight.

You would like to know how the Freight is distributed among the Items in the Sales Order and the Invoice created for the Sales Order. 

SAP Business ByDesign

The Freight of Sales Documents is distributed to the Items based on their Net Price. So, each Item will take a certain amount of the Freight, and when adding these together it should get the Header Level Freight value.

To explain this in an example:

The Sales Order has 3 line items:

Line Item 10 has the quantity of 2 ea and the Net Value of 100.00 EUR

Line Item 20 has the quantity of 1 ea and the Net Value of 100.00 EUR

Line Item 20 has the quantity of 1 ea and the Net Value of 300.00 EUR

You added a Freight in the Sales Order with 120.00 EUR

The distribution of the Freight for each line item is as follows:

Line Item 10 with 24.00 EUR (120.00 EUR/500.00 EUR*100.00 EUR)

Line Item 20 with 24.00 EUR (120.00 EUR/500.00 EUR*100.00 EUR)

Line Item 30 with 72.00 EUR (120.00 EUR/500.00 EUR*300.00 EUR)

Scenario 1 - The full quantity is not delivered and invoiced:

If only 1 ea instead of the full quantity of 2 ea is delivered for Sales Order Line Item 10 the system will divide the assigned Freight on the Sales Order by the quantity.

This means that when the Outbound Delivery for Sales Order Line Item 10 with the quantity 1 ea is invoiced, the Freight Amount on the Invoice will be 60.00 EUR and the Price Component Value of the Freight will be 12.00 EUR

Scenario 2 – a line item in the Sales Order is cancelled:

Sales Order Line Item 20 was cancelled and only Sales Order Line Item 10 and 30 were delivered with the full quantity.

Depending on when the Item in the Sales Order was cancelled the Freight on the Invoice is as follows:

a) If the Sales Order Line Item 20 was cancelled before any other item was invoiced, the Freight in the Invoice when the Outbound Delivery for Sales Order Line Item 10 and 30 (with the full quantity) is as follows:

Freight Amount on the Invoice will be 120.00 EUR and the Price Component Value of the Freight will be 96.00 EUR

b) If the Sales Order Line Item 20 was cancelled after the other items were invoiced, the Freight in the Invoice when the Outbound Delivery for Sales Order Line Item 10 and 30 (with the full quantity) is as follows:

Freight Amount on the Invoice will be 120.00 EUR and the Price Component Value of the Freight will be 120.00 EUR

Scenario 3 – a line item in the Sales Order is cancelled, the cancellation was removed later:

The process of Scenario 2 a) was followed and the Reason for Rejection was removed for Sales Order Line Item 20 after the other items were invoiced (Invoice was released).

Freight Amount on the Invoice will be 120.00 EUR and the Price Component Value of the Freight will be 24.00 EUR

The process of Scenario 2 b) was followed and the Reason for Rejection was removed for Sales Order Line Item 20 after the other items were invoiced (Invoice was released).

Freight Amount on the Invoice will be 0.00 EUR and the Price Component Value of the Freight will be 0.00 EUR since the full Freight Amount was already allocated to the previous invoice.

Please Note: 

Freight and Other Charges are also subject to tax.

When these header level price components are added, the tax amount is distributed across the items and taxed according to the Tax Code maintained for the Item.

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Sales Order, Freight, Item, Invoice, Tax Calculation, Tax Code, mismatch, different,  , KBA , SRD-CRM-INV , Customer Invoicing , AP-PRC-PC , Calculation , Problem