Why does each line item of a PO show up on SAP instead of just the total of the PO, plus shipping and handling charges?
• A: SAP looks at individual line items because PO line items can be set up in three different ways: 1) GR (good receipts) for the item is turned ON (this is the standard setting) – this means that Central Receiving can receive the items and cost centers are charged on receipt of these items into the system. 2) GR for the item is turned OFF (e.g. services) – this means that Central Receiving cannot receive the items and cost centers are charged upon invoicing. 3) GR non-valuated (multiple cost centers to be charged on one line item) – this means Central Receiving can receive the items on the system, but cost centers are charged upon invoicing. If the shipping and handling charges are known up front, they will show up as a separate line item on the PO (with GR turned off).
