How to Handle Freight Charges at GR in SAP MM (When Paid Directly to the Lorry Driver)

Let’s say you’ve issued a Purchase Order (PO) for 20 tons of goods. But instead of receiving everything in one go, the delivery happens in two parts:
  • GR1: 10 tons + ₹1,000 freight (paid to lorry driver)
  • GR2: 10 tons + ₹1,500 freight (again, paid to lorry driver)
The freight is not billed by your material vendor and can't be planned in advance—you only know the amount when the truck shows up. Plus, the vendor's invoice arrives 10 to 15 days later, so you want to account for the freight costs immediately, without delaying invoice verification (LIV).

Best Solutions: Real, Working SAP MM Options

Option 1: Create a Separate Service PO for the Freight Vendor

This is the cleanest and most auditable way.

Steps:

1. Create a standard PO for your material (20 tons).
2. As and when the lorry arrives, create a new service PO for the freight service (Rs. 1000 / Rs. 1500).
3. Post the GR normally for the materials.
4. Use F-47 and F-48 to post down payment and actual payment to the lorry driver.
5. Do Invoice Verification (MIRO):
  • First for the material vendor (Goods/Service items only).
  • Then for the freight vendor (choose Planned Delivery Cost to input exact value).
Why it's great: Keeps freight billing separate and matches actuals. Works even if the freight changes per truckload.

Option 2: Use MIRO – Planned Delivery Cost During LIV

Sometimes you don’t need a separate PO. You can handle it all during invoice verification.

Steps:

1. Post GR as usual.
2. In MIRO:
  • Choose “Goods/Services + Planned Delivery Cost”.
  • Enter the freight charges manually in the second line item.
  • Set the invoice party as the lorry driver or freight service provider.
Bonus Tip: This only works well if you're okay with freight cost being capitalized or absorbed into material valuation.

Option 3: Unplanned Delivery Cost Entry in MIRO

This is the fastest, though least transparent option.

Steps:

1. After GR, go to MIRO.
2. Enter the invoice for the material vendor.
3. Use the "Unplanned Delivery Cost" field to plug in the actual freight.
4. The cost will be absorbed into the material cost or posted to a price difference account.
When to use: If you're in a rush and okay with freight cost being bundled into material cost without showing it explicitly.

Option 4: Subsequent Debit for Freight Costs

This one's great if you've already done GR and material invoice, and now want to account for freight after the fact.

Steps:

1. Create PO for material vendor (no freight planned).
2. GR the goods.
3. Do LIV for the material vendor.
4. Use Subsequent Debit in MIRO:
  • Change the invoicing party to the lorry driver.
  • Enter the exact freight cost.
When to use: When freight cost wasn't known at the time of initial LIV.

Real-Life Scenario Recap

Action: GR of material — Vendor Type: Material Vendor — Tool: MIGO — Comment: Standard Goods Receipt
Action: Freight payment (Rs 1000) — Vendor Type: Lorry Driver — Tool: F-47/F-48 — Comment: Down Payment
Action: Invoice for material — Vendor Type: Material Vendor — Tool: MIRO — Comment: Select “Goods/Service items”
Action: Invoice for freight — Vendor Type: Lorry Driver — Tool: MIRO — Comment: Select “Planned Delivery Cost”

Pro Tips

  • Keep the freight vendor (lorry driver) master data ready in the system. Mark them as a service vendor if needed.
  • Use internal freight condition types (like FRA1) in PO for better traceability—even with dummy values.
  • Use account assignment category 'K' (Cost Center) if freight isn't related to inventory value.
  • For frequent freight scenarios, build a freight framework PO and draw from it as needed.

Final Thoughts

When your freight isn't planned in the PO and is paid directly to the transporter, SAP gives you flexibility. Whether it’s a service PO, planned delivery cost during MIRO, or subsequent debit, the trick is picking the method that suits your organization’s auditability, accounting practices, and operational speed.

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