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    SAP MM - 23 v Invoice Verification

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    Sunil Yadav

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    © All Rights Reserved
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    SAP MM - 23 v Invoice Verification

    Uploaded by

    Sunil Yadav
    1 views8 pages

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    PDF, TXT or read online from Scribd

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    Copyright:

    © All Rights Reserved
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    Download as pdf or txt
    1 views8 pages

    SAP MM - 23 v Invoice Verification

    Uploaded by

    Sunil Yadav

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Page 1 of 8

    SAP MM - Invoice Verification


    Every organization acquires goods or services to complete its business needs. Once goods
    are procured from a vendor and placed in company’s premises through goods receipt, we
    need to pay to the vendor for the acquired goods and services. The amount to be paid
    along with the details of the material is provided by the vendor in the form of a document
    that is known as the invoice. Before paying to the vendor, we need to verify the invoice.
    This process of verifying the invoice before making a payment is known as invoice
    verification. The key points to note about invoice verification are as follows −

    Invoice verification marks the end of procurement, after purchase order and goods
    receipt.

    Invoice posting updates all the related documents in financials and accounting.

    Blocked invoice that vary from actual invoice can be processed through invoice
    verification.

    One normally comes across the following terms in invoice verification −

    Posting of Invoice

    Blocked Invoice

    Evaluated Receipt Settlement(ERS)

    Posting of Invoice
    Posting of invoice is done after having received the goods from the vendor and after
    having completed the goods receipt. The invoice received from a vendor is verified against
    cost, quantity, and quality by the ordering party, and then the invoice is posted against
    that purchase order.

    This is the phase where the vendor (seller) is paid from the company and reconciliation of
    the invoice and PO is accomplished. Follow the steps given below to post an invoice.

    Path to Post Invoice

    Logistics ⇒ Materials Management ⇒ Logistic Invoice Verification ⇒ Document Entry ⇒


    Enter Invoice

    TCode: MIRO

    Step 1 − On the SAP Menu screen, select Enter Invoice by following the above path.

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    Step 2 − Fill in all the necessary details such as invoice posting date, amount that is paid
    to the vendor along with the quantity for which the amount is paid. Click on Save. Invoice
    is now posted for the goods receipt.

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    Blocked Invoice
    Sometimes the accounting department may not be able to pay a vendor as per the invoice
    raised. This may happen in the following scenario. You try to post an invoice, however the
    system expects certain default value against the purchase order or the goods receipt and
    the posted invoice differs from the default value. This may lead to invoice blocking. Invoice
    blocking is caused due to −

    Variance in amount at item level


    Variance in quantity at item level

    It is difficult to analyze small variances in invoice. So, tolerance limits are set up in the
    system and if the variance in the invoice is within the tolerance limit, then the system
    accepts the invoice. If the variance exceeds the tolerance limit, then it may lead to invoice
    blocking. In such cases, we need to manually unblock or release the blocked invoice if it
    has to be processed. Follow the steps given below to unblock an invoice.

    Path to Release Blocked Invoice

    Logistics ⇒ Materials Management ⇒ Logistic Invoice verification ⇒ Further Processing ⇒


    Release Blocked Invoice

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    TCode: MRBR

    Step 1 − On the SAP Menu screen, select Release Blocked Invoices by following the above
    path.

    Step 2 − Provide necessary details such as company code, invoice document number,
    vendor, posting date, and purchasing group. Then click the execute button. The blocked
    invoice will be released.

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    Evaluated Receipt Settlement


    Evaluated Receipt Settlement (ERS) is an easy method of settling goods receipt
    automatically. If the ordering party has agreed with the vendor on all financial terms and
    condition, then it need not verify the invoice. Invoice will be posted automatically from the
    information present in the purchase order and the goods receipt. Given below are the
    advantages of having an ERS −

    Purchase orders can be settled and closed quickly.


    It reduces human efforts, as there is no need to verify the invoice.

    Amount and quantity variances in invoice can be avoided with the help of ERS.

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    To implement ERS, some mandatory settings are to be done in the vendor master.

    Go to XK02 (Change mode of vendor master).

    Select Control data tab.

    Check the AutoEvalGRSetmt Del. and AutoEvalGRSetmt Ret box.

    Click on Save. Now the particular vendor is enabled for ERS.

    Follow the steps given below to create an ERS.

    Path to Create ERS


    Logistics ⇒ Materials Management ⇒ Logistic Invoice verification ⇒ Automatic Settlement
    ⇒ Evaluated Receipt Settlement (ERS)

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    TCode: MRRL

    Step 1 − On the SAP Menu screen, select Evaluated Receipt Settlement (ERS) by following
    the above path.

    Step 2 − Fill in all the necessary details such as company code, plant, goods receipt
    document number and date, vendor, and purchasing document. Click on Save. ERS will be
    created for the corresponding purchase order and goods receipt.

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