Document Trade Costs for Sales, Purchase, and Transfer documents

Document trade costs are applied at the header level of a sales order, affecting the entire order rather than being tied to specific sales lines. For example, transport costs can be added as a fixed amount that applies to the total order, covering all items within that order. This allows for more straightforward cost management when dealing with expenses that impact the entire shipment or transaction rather than individual items.

When releasing sales or purchase documents without predefined trade costs, the system can automatically assign these costs based on the trade plan rates. To enable this, ensure the Assign Trade Plan Costs in Sales Doc and Assign Trade Plan Costs in Purchase Doc fields are set to Ask on the Trade Management Setup page.

This functionality applies only to Trade Plans where the Applies-to field is set to Header. When activated, any existing lines on the Document Trade Costs page are removed, and new costs are assigned accordingly. This process also triggers when you change the sell-to customer on a sales document or the buy-from vendor on a purchase document.

1. In the Trade Plan No. field, select the required trade plan that should be applied to the order.
   The corresponding description of the trade plan is updated in the Description field.

2. In the Currency Code field, select the currency in which the rates for the trade plan are defined.
   If the prices in a sales or purchase document are listed in a different currency than the one specified in the trade plan, the system will automatically recalculate the rates to match the document’s currency code.

3. In the Calculation Type field, select the calculation type that should be applied. This field defines the calculation method applied to the order lines:

   • Amount per Order – The specified rate(s) in the trade plan applies for each order. A fixed amount that is specified in the Trade Plan Costs is used. When this option is selected, the Amount field becomes editable.
   • Percentage of Order Amount – The specified rate(s) applies as a percentage of the order amount. A percentage of the total order amount is used. When this option is selected, the Percentage field becomes editable.

4. In the Percentage field, enter the required percentage of the order amount that should be applied as costs. This only applies when the Calculation Type field is set to Percentage of Order Amount.

5. In the Amount field, enter the amount to be applied as a cost to the entire order. This is only applicable when the Calculation Type field is set to Amount per Order.

6. In the Allocation Method field, select the required option from the dropdown. This setting determines how the cost is distributed across multiple document lines when applicable.

7. Select the Accrual Posted checkbox to indicate whether a part of the shipment or receipt has been posted. Once selected, you cannot change or delete the accruals. In the Trade Partner No. and Trade Partner Name fields, you can view the number and name of the trade partner linked to the trade accrual.

It is possible to add costs to the whole order instead of one line. This applies to the following pages:

• Sales Order
• Sales Return Order
• Purchase Order
• Purchase Return Order
• Transfer Order

Trade costs get posted for the different documents on the following triggers:

• Sales Line: Trade costs are posted upon posting the sales line for invoice or credit memo.
• Purchase Line: Trade costs are posted upon posting the purchase line for receipt or shipment.
• Sales Order: Trade costs are posted upon posting the sales (return) order for shipment or receipt.
• Purchase Order: Trade costs are posted upon posting the purchase (return) order for receipt or shipment.
• Transfer Order: Trade costs are posted upon posting the transfer order for receipt.

Access document trade costs with catch weight items

When you post a sales order partially or fully with document trade costs at the header level, the system calculates the trade costs for the posted sales shipment and generates corresponding value entries.

For catch weight items, the system updates the amount based on the item’s weight. Ensure the sales order includes the necessary items and quantities.

1. Open the Sales Order page.
2. Fill out the necessary field values such as item number, quantity, quantity to ship, and weight quantity to handle and item tracking details.
3. Verify that the document trade costs are added at the header level. To do so, navigate to the action bar and select Order > Document Trade Costs.
4. On the action bar, select Actions > Functions > Update Catch Weight Item Unit Price.
   The system updates the unit price of the catch weight item based on the weight quantity to invoice on the item tracking lines for that item. The unit price is calculated from the price set on the sales price list for that item.
5. Post the sales order for Ship.
6. Open the Posted Sales Shipment page.
7. On the action bar, select Related > Shipment > Document Trade Costs.

In the Amount field, you can view the amount applied as cost for the entire order.

This is calculated based on the rate defined on the Document Trade Costs page associated with the sales order.

When the Calculation Type is set as Amount per Order, you can enter the required amount in the Amount field.

In this scenario, the system calculates the Amount field value on the Posted Sales Document Trade Costs page based on the specified amount for the order on the Document Trade Costs page. If the order is partially posted, the amount is calculated based on the shipped quantity, and the remaining amount is left for the remaining lines on the order.

Allocate trade costs by weight

The system efficiently manages trade costs when posting sales orders with document trade costs at the header level, particularly for catch weight items. It calculates trade costs based on the item’s weight and distributes these costs across multiple lines and lot numbers on the sales order.

After posting the sales order with the allocation method set to Amount, the system calculates the unit price and amount for each line according to the item’s weight. Once the posting is complete, you can view the generated value entries for the sales shipment.

1. Open the related Posted Sales Shipment page.
2. On the action bar, select Find Entries.
   The Find Entries page opens.
3. On the Related Entries field, select Value Entry.
   The Value Entries page opens.
   You can view the generated value entries for the sales shipment.

In the Cost Amount field in value entries, you can view the exact cost, representing the item charge assigned to the outbound document. Based on weight distribution, the system creates value entries for the trade costs associated with each lot number.

The system handles trade costs consistently across various scenarios, similar to the process described above:

• Sales Orders:

  • Full or partial shipments (with or without document trade lines)

• Sales Return Orders:

  • Full or partial receipts (with or without document trade lines)

In each scenario, the system calculates and allocates trade costs based on the item’s weight, ensuring accurate cost distribution and consistent financial reporting.