How-toSAP ECC / S/4HANAMM / Purchasing and Invoice Verification

Landed cost in SAP MM: planned and unplanned delivery costs

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landed cost in sap mm

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sap mm planned delivery costs
sap mm unplanned delivery costs
freight and duty cost in purchase order sap

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.

Applies to: SAP ECC 6.0 and S/4HANA on-premise; newer S/4HANA releases also offer extended landed cost functions

Set up and post landed cost for a purchase

1Decide 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.
2In 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.
3Post 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.
4When the vendor invoice for the goods arrives, post it in MIRO. Match the goods price against the receipt.
5For 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.
6If 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.
7Review the valuation and the GR/IR account with MR11 or the GR/IR reports; confirm the stock value and price difference postings.

Planned versus unplanned delivery costs

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

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.

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

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.

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SAP MM Transaction Codes Reference

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Searchable list of the SAP MM transaction codes consultants and buyers use daily, grouped by purchasing, inventory, invoice verification and MRP.

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T-code	Area	What it does	Note
ME51N	Requisition	Create purchase requisition	Fiori: Create Purchase Requisition
ME52N	Requisition	Change purchase requisition
ME53N	Requisition	Display purchase requisition
ME54N	Requisition	Release (approve) purchase requisition	Used with a requisition release strategy
ME5A	Requisition	List display of purchase requisitions
ME57	Requisition	Assign and process requisitions	Assign a source before ordering
ME59N	Requisition	Automatic generation of POs from requisitions	Needs source of supply and auto PO flag
ME21N	Purchase order	Create purchase order	Fiori: Manage Purchase Orders
ME22N	Purchase order	Change purchase order
ME23N	Purchase order	Display purchase order
ME29N	Purchase order	Release purchase order	Individual release for a PO release strategy
ME28	Purchase order	Release purchase orders collectively
ME2M	PO reporting	Purchase orders by material	Selection by scope of list
ME2L	PO reporting	Purchase orders by vendor
ME2N	PO reporting	Purchase orders by PO number
ME80FN	PO reporting	General analysis of purchasing documents	ALV based, flexible selection
ME2O	Subcontracting	Subcontracting stock monitoring	Components provided to the vendor
ME31K	Outline agreement	Create contract
ME32K	Outline agreement	Change contract
ME33K	Outline agreement	Display contract
ME31L	Outline agreement	Create scheduling agreement
ME41	Sourcing	Create request for quotation
ME47	Sourcing	Maintain quotation
ME49	Sourcing	Price comparison list	Compares quotations for an RFQ
ME01	Sourcing	Maintain source list	Table EORD
ME03	Sourcing	Display source list
ME11	Info record	Create purchasing info record	Tables EINA and EINE
ME12	Info record	Change purchasing info record
ME13	Info record	Display purchasing info record
MM01	Material master	Create material	S/4HANA: material number up to 40 characters
MM02	Material master	Change material
MM03	Material master	Display material
MM60	Material master	Material list
MMSC	Material master	Create storage location for a material in one step	Collective creation of storage location views
MIGO	Inventory	Goods movement: goods receipt, goods issue, transfer posting	Replaces the older MB01, MB1A, MB1B, MB1C
MMBE	Inventory	Stock overview for a material	Plant, storage location, batch, special stock
MB51	Inventory	Material document list	Reads material documents
MB52	Inventory	Warehouse stocks of material	Includes valuated stock value
MB5B	Inventory	Stocks for posting date	Historical stock on a past date
MB03	Inventory	Display material document
MI01	Physical inventory	Create physical inventory document
MI04	Physical inventory	Enter inventory count with document reference
MI07	Physical inventory	Post inventory differences	Posts differences to stock and accounting
MI20	Physical inventory	List of inventory differences	Review before MI07
MIBC	Physical inventory	ABC analysis for cycle counting	Assigns cycle counting indicators
MIRO	Invoice verification	Enter incoming invoice	Logistics invoice verification
MIR7	Invoice verification	Park invoice	Save without posting
MIR4	Invoice verification	Display invoice document	Tables RBKP and RSEG
MIR6	Invoice verification	Invoice overview
MR8M	Invoice verification	Cancel invoice document
MRBR	Invoice verification	Release blocked invoices	Invoices blocked by tolerance or manual block
MR11	Invoice verification	GR/IR account maintenance	Clears GR/IR differences
MRKO	Invoice verification	Consignment and pipeline settlement
MD01N	MRP	MRP Live run (total planning)	HANA optimized; MD01 is the classic run
MD02	MRP	Single-item, multi-level planning
MD03	MRP	Single-item, single-level planning
MD04	MRP	Stock/requirements list	Current view of supply and demand
MD05	MRP	MRP list	Result of the last MRP run
MD06	MRP	MRP list collective display
MD07	MRP	Stock/requirements list collective display
MD61	MRP	Create planned independent requirements
MMPV	Period close	Close period for materials	Sets the posting period for inventory
OMJJ	Customizing	Customize movement types	Movement types are table T156

Search by code or keyword. Availability differs by release: several classic transactions are replaced by Fiori apps or marked obsolete in S/4HANA, so confirm in your own system with SE93 or the SAP Fiori apps reference library.

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Common 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.

How an ERP-grounded AI assistant handles this

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.

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Frequently asked questions

What is the difference between planned and unplanned delivery costs?

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?

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?

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?

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.

How-to

SAP MM price determination: pricing procedure, condition types and fixing wrong PO prices

In SAP MM the purchase price comes from condition records, read in the order set by the calculation schema (standard RM0000), which the system assigns using the purchasing organization, vendor schema group and plant. PB00 is the gross price condition type. A wrong price in ME21N is usually a missing or outdated info record or condition, or the wrong schema.

How-to

SAP GR/IR clearing account balance: reconcile with MB5S and clear with MR11

The GR/IR clearing account holds the value of goods received but not yet invoiced, and invoices not yet matched with receipts. It should trend to zero per PO item. Reconcile it with MB5S, find the PO items that are stuck, and clear true differences with MR11 or automatic clearing in F.13, after correcting the cause.

How-to

SAP MIRO: invoice blocked for price variance, and how to release it in MRBR

MIRO blocks an invoice for payment when its price or quantity differs from the PO or goods receipt by more than the tolerance limits defined in OMR6. The invoice posts, but it carries a payment block reason (R for price) until someone releases it in MRBR or corrects the underlying data. Release only after confirming which side is wrong.

How-to

Dynamics 365 Supply Chain Landed Cost: Voyages, Charges and Allocation

Landed cost in Dynamics 365 Supply Chain Management lets you add freight, duty, insurance and similar costs to the inventory cost of imported goods. You group purchase lines into a voyage, attach shipping containers, add costs from charges codes, and the system allocates those costs back to the received items so item cost reflects the true cost to land them.

Error fix

SAP M7 021: Deficit of SL Stock Quantity

M7 021 fires during a goods issue, delivery, or confirmation when SAP checks the unrestricted-use (SL) stock for the exact plant, storage location and batch combination and finds less than what you are trying to post out. Fix the entry (batch, storage location, quantity) first; only enable negative stock or downgrade the message to a warning if the business genuinely needs to post ahead of a receipt.

Error fix

SAP IDoc Status 51: Application Document Not Posted

Status 51 tells you the IDoc reached the application layer and failed to post, but the status text itself is not the error - the real cause sits in the status record's long text or the linked application log. Fix the underlying data or configuration, then reprocess the IDoc through BD87 rather than editing the status.

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SAP MM Transaction Codes ReferenceSearchable list of the SAP MM transaction codes consultants and buyers use daily, grouped by purchasing, inventory, invoice verification and MRP.

Landed cost in SAP MM: planned and unplanned delivery costs

Set up and post landed cost for a purchase

Planned versus unplanned delivery costs

Effect on valuation: standard versus moving average price

Import duty and customs

Ask SAP in plain English

Common pitfalls

How an ERP-grounded AI assistant handles this

Frequently asked questions

Related

SAP MM price determination: pricing procedure, condition types and fixing wrong PO prices

SAP GR/IR clearing account balance: reconcile with MB5S and clear with MR11

SAP MIRO: invoice blocked for price variance, and how to release it in MRBR

Dynamics 365 Supply Chain Landed Cost: Voyages, Charges and Allocation

SAP M7 021: Deficit of SL Stock Quantity

SAP IDoc Status 51: Application Document Not Posted

AI for SAP S/4HANA, Running On-Prem or in Your Private Cloud

Stuck on SAP ECC / S/4HANA?

Keep exploring

Free tools

ERP fixes and how-tos

Ask SAP in plain English