# Landed cost in SAP MM: planned and unplanned delivery costs > Source: https://netray.co/erp-help/landed-cost-in-sap-mm-delivery-costs-gr-ir > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: ERP Help ## Short answer SAP MM handles landed cost through delivery cost conditions. Planned delivery costs are conditions on the purchase order (flagged as delivery costs) that are accrued at goods receipt and settled with the freight invoice. Unplanned delivery costs are entered in MIRO when the invoice arrives. How they hit inventory value depends on the price control of the material. ## Kind how-to ## System sap ## Erp SAP ECC / S/4HANA ## Module MM / Purchasing and Invoice Verification ## Query landed cost in sap mm ## Alternate Queries - sap mm planned delivery costs - sap mm unplanned delivery costs - freight and duty cost in purchase order sap ## Applies To SAP ECC 6.0 and S/4HANA on-premise; newer S/4HANA releases also offer extended landed cost functions ## Steps ### Set up and post landed cost for a purchase **Items:** Decide which costs are landed: freight, insurance, customs duty, handling. Create or reuse condition types such as FRA1 or FRB1 for freight in the purchasing calculation schema, and mark delivery cost condition types appropriately in customizing. In the purchase order (ME21N), add the delivery cost condition on the item conditions tab, or maintain it in the vendor info record, so it is planned. Post the goods receipt in MIGO. The material is valued at purchase price plus the planned delivery cost under moving average price (V), with a GR/IR credit for the planned amount. When the vendor invoice for the goods arrives, post it in MIRO. Match the goods price against the receipt. For a separate freight or duty invoice from another vendor, post it in MIRO with reference to the same PO using the delivery cost vendor and the planned cost item. If the cost was not planned, use the unplanned delivery costs option in MIRO and choose to allocate it to the material or distribute it across items. Review the valuation and the GR/IR account with MR11 or the GR/IR reports; confirm the stock value and price difference postings. ## Sections ### Planned versus unplanned delivery costs **Body:** Planned delivery costs are known when you create the order. They are conditions on the item, accrued at goods receipt, so inventory is valued at the full landed price from the start. When the freight invoice is posted, it clears the accrual, and any difference between plan and actual becomes a price difference or is adjusted into stock depending on valuation. Unplanned delivery costs arrive on the invoice without a PO condition. In MIRO you can add them on the unplanned delivery costs tab and choose whether they are distributed to the items by quantity or value. They are posted to the material or to an account depending on the settings in invoice verification customizing. ### Effect on valuation: standard versus moving average price **Body:** For a material with moving average price, delivery costs increase the stock value and thereby change the price. For standard price, the delivery cost does not alter the standard price; the difference goes to a price difference account, and the variance shows up in the period. This is why finance and purchasing should agree early whether landed cost is capitalised into the price or expensed through variances. The accounting entries are driven by transaction keys in automatic account determination (OBYC): BSX for the stock account, WRX for GR/IR clearing, PRD or UMB for price differences, and FR1 or FRL for freight provision in the standard keys. Confirm the exact keys with your finance configuration because they are often customised. **Code:** - OBYC transaction keys (typical): BSX stock, WRX GR/IR, PRD price difference, FR1 freight provision, FR2 freight clearing - MIRO: Details > Unplanned delivery costs tab; Planned delivery costs: post a separate invoice referencing the PO ### Import duty and customs **Body:** For imports, duty is often posted as a separate invoice from a customs broker and referenced to the purchase order as a delivery cost. If your process requires exact duty per shipment, build the duty as its own condition type and keep the broker as a separate vendor on the item, so the cost can be settled independently of the goods vendor. Where you need a full cost build-up across many shipments, SAP provides extended landed cost functionality in newer S/4HANA releases that works with the import process. Check the release documentation and whether it is licensed and activated before designing around it. ## Pitfalls - Booking freight directly to an expense account and bypassing inventory, which understates cost of goods. - Using standard price and expecting freight to raise the price. - Posting freight against the wrong PO item, which misstates GR/IR for that line. - Leaving a planned cost on the PO that never gets invoiced, leaving an open GR/IR balance. - Assuming OBYC keys are standard without checking your configuration. ## Ai Angle A grounded assistant can read PO conditions, goods receipt documents and open GR/IR items and explain where a freight cost went, which items are carrying an uninvoiced accrual and how much price difference a material built up. It queries your SAP data on-prem, read-only, and leaves any correction postings to finance users. ## Faq ### What is the difference between planned and unplanned delivery costs? **Answer:** Planned delivery costs are conditions on the purchase order and are accrued at goods receipt. Unplanned delivery costs appear first on the invoice and are entered during invoice verification in MIRO. Both can be allocated to the material value. ### Does freight change the standard price? **Answer:** No. With standard price the delivery cost is not added to the price. The difference goes to a price difference account. Under moving average price, delivery costs increase the stock value and change the average price. ### How do I post a separate freight invoice in SAP? **Answer:** Use MIRO and reference the purchase order, selecting the delivery cost item when the cost was planned. If it was not planned, use the unplanned delivery costs option and allocate the amount to the items on the invoice. ### Is there a landed cost transaction in SAP? **Answer:** Classic MM has no single landed cost transaction; it is built from conditions and invoice verification. Newer S/4HANA releases include dedicated landed cost functionality, which depends on release and activation. ## Search terms landed cost in sap mm, sap mm delivery costs, planned delivery costs sap, unplanned delivery costs miro, sap freight cost purchase order, sap import duty posting, gr/ir freight sap, sap landed cost s/4hana --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json