SAP Knowledge Base Article - Public

3755099 - Inventory and Freight Posted to a Single GL During Goods Receipt

Symptom

When creating a Purchase Order, the tax condition type ABC does not include freight costs in its calculation base. The tax is only calculated on the material net value, excluding any freight amounts, which does not meet the business requirement of taxing the total cost.
 

Environment

 SAP S/4HANA Cloud Public Edition

Reproducing the Issue

  1. Create a new Purchase Order 
  2. Enter material, quantity, and unit price
  3. Check the tax condition ABC in the Condition tab
  4. Observe that the Cond.Basis (Tax Base) only includes the material net value, not the freight amount
  5. Even if freight is later added manually to an existing PO, the tax calculation may not update automatically without re-pricing

Cause

 
  1. The ABC condition type has the Accrual checkbox enabled at the condition type level. Depend on standard SAP tax calculation logic, SAP only considers non-statistical conditions when calculating the net value for tax purposes. Accrual related conditions are automatically treated as statistical even if not marked.
  2. From condition type ABC configuration, ABC has manual =x (Manual only), meaning it will never appear automatically in a PO. It must be added manually by the user.
  3. If the user not manually add ZFRB to the PO, the freight amount is not present in the pricing procedure at all. Therefore, it cannot be included in the tax base calculation, even if all other pricing configurations are correct.

Resolution

Configure automatic condition determination to avoid manual entry:

1. Open SSCUI 103399 Define Condition Types
2. Select condition type ABC and click Edit
3. Assign an appropriate access sequence 
4. Remove the Manual only indicator if automatic determination is desired
5. Ensure that the identified condition type is not accrual and not statistical



Keywords

goods receipt, MIGO, freight, delivery costs, pricing procedure, condition type, account key, posting, tax calculation , KBA , FI-LOC-MM-IN , India (aka XX-CSC-IN-MM) , MM-PUR-GF-PR-2CL , Price Determination (Public Cloud) , Problem

Product

SAP S/4HANA Cloud Public Edition all versions