Ask the FI/CO Expert: "How Can You Segregate the Expected Inbound Freight Costs in Manufactured Goods' Standard Cost Estimates?"

  • by Gary Fullmer, Solution Architect, MI6 Solutions
  • May 15, 2002
You can highlight estimated inbound freight costs in a Product Cost Estimate without having to do convoluted workarounds. The solution is the standard R/3 option called "Delivery Costs." Learn what the Delivery Costs option is and how you can activate it.
Key Concept



This month’s "Ask the Expert" column addresses a question that several people have asked one of our regular contributors, Gary Fullmer, product manager at SAP America for the Financials modules. The confusion concerns a Product Costing functionality introduced in release 4.6 called "Delivery Costs."

A number of people have asked me lately, "In a Product Cost Estimate, is it possible to highlight the estimated inbound freight costs for the purchased material components without resorting to crazy workarounds such as putting dummy lines in the Routing and/or Bill of Material (BOM) masters?"

The answer is an unequivocal yes! In fact, as of release 4.6, this is a standard R/3 option called "Delivery Costs."

Gary Fullmer

Gary Fullmer is currently associated with MI6 Solutions as a solution architect. Prior to MI6 Gary recently worked for SAP Labs for 13+ years. While at SAP Labs, he spent his first four years as a CO instructor developing and delivering all CO courses offered in the SAP course catalog. For the next six years, he assumed the role of a FI/CO solution manager, where he focused on interfacing with customers for CO, SEM, and FI solutions. During the remainder of his time with SAP, he worked on SAP General Ledger migration techniques, the SAP IFRS adoption model, and SAP’s enhanced financial closing, and continues to consult on these topics. His educational background includes an MBA from Rensselaer Polytechnic Institute, an MS from Utah State University, and a BS from Utah State University.

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