One of our clients is required to include tariffs for the part cost setup. From the manufacturing side, currently, this is configured as follows: (In IFS Cloud 22R2)
- A new cost bucket is created to accommodate the tariff requirement.
- A new cost element is defined for Tariffs, and the defined cost bucket is connected
- After creating the supplier for the purchase part, delivery overhead details are added on the Delivery Overheads tab.
- Then, the part cost is calculated, and using the cost roll-up, the cost of the part, now including the tariff, is updated to Cost set 1.
Next, a purchase order with this part (which has a tariff as a delivery overhead) is created, and once the goods are received, the postings below are created.
Purchase Order Amount - $175 (The part with tariff overhead is connected)
- M1 (Debit) - 175.00
- M10 (Credit) - 175.00
The tariff amount to be added to this transaction is $50; for that, the below postings are created:
- M1 (Debit) - $50
- M57 - Delivery Overhead (Credit) - $50
The system event triggered for this is DELIV-OH - Delivery Overhead, which matches the triggered debit and credit postings.
Could you please explain the logic behind the M57 Posting Type and how it explains the above transaction, in which an overhead transaction is credited (decreased) to an account?
Your valuable support and guidance are greatly appreciated!
