Details on Logistic Invoice Verification (MIRO)

                                                     Logistic Invoice Verification

Every organization procures some goods and services to complete the business processes. Once goods are procured from vendor, through GR we place those goods in company premises after that vendor sends invoice (The amount to be paid along with the details of the material is provided by the vendor in the form of a document) to pay for procured goods. Before paying to the vendor we need to check the invoice for correct payment, this process is known as Logistic Invoice Verification.

Before going in depth let us know some basic term you come across during LIV.

1. Posting of Invoice

• It is done after the good receipt (Receiving Goods from vendor)
• The invoice received from the vendor is verified for cost, quality and quantity by the ordering party and then the invoice is posted against purchase order.

Logistics ----Materials Management----Logistic Invoice Verification----Document Entry----Enter Invoice.

T Code: MIRO

Fill all the details as shown in figure like; PO number, total amount, Invoice date, tax if any to calculate. Then click on save. Invoice will be posted for good receipt received.

2. Blocked Invoice

• Sometimes vendor payment may not be done as per invoice received it happens due to few reason like system expect few of the things must be entered in invoice, sometimes there may be variation in PO value and Invoice value etc. this leads to blocking of invoice.
• To avoid this blocking some kind of tolerances must be setup.

Logistics---Materials Management---Logistic Invoice verification---Further Processing----Release Blocked Invoice.

T code: MRBR

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.

3.Evaluated Receipt Settlement (ERS)

·         Good receipt can be settled automatically.

·         Invoice will be posted automatically from the information present in the purchase order and the goods receipt

·         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.

·         There are few settings to be done in Vendor master for ERS 

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.

LogisticsàMaterials ManagementàLogistic Invoice verificationàAutomatic Settlement àEvaluated Receipt Settlement (ERS)

T Code: MRRL

These are one should understand before going to LIV.

Invoice Verification

There are four types of invoice transactions

1. Invoice

2. Credit Memo

3. Subsequent Debit Memo

4. Subsequent Credit Memo

Before learning all above four topics we will set some basic configuration of Logistic invoice verification.

SPROàIMGàMaterial Managementà logistic invoice verificationàIncoming InvoiceàNumber AssignmentàMaintain Number Assignments for Accounting Document

 Tcode: OMR4

 You will get the tab as shown in figure

·         Click on document type

·         You will see next window in which number document type as per posting are created already like AA, CP and RE etc.

·         Let’s select RE Gross Inv. Receipt and click on Details.

·         You will be on next tab as shown in figure. Here you can observe assigned number range is 51 and document type is RE. You can observe there which account types are allowed for posting.

·         Also if you click on net document type then whatever may be discounts with vendor that will be displayed on invoice only and no need will be there to go to payment page for display. 

·         Click on Number Range Information.

·         Put company code and click on intervals 

·         You can observe 51 Number range is created for year 2022.

·         If current year in invoicing document number range is not allowing then you cannot post any invoicing document.

·         If your current year is not available in number range then, you can select number range go to edit and click on insert year.

·         You can put new number range for New Year. And save 

·         Now go back to first tab and click on Document types in Invoice verification.

·         You will observe different entries select MIRO and click on Details tab. 

You Can Check Document Type RE is Assigned to this. Likewise you can check for other transactions also.

Come Back to IMG and go to next step 

SPROàIMGàMaterial Managementà logistic invoice verificationàIncoming InvoiceàNumber AssignmentàMaintain Number Assignments for Logistic Document-àTransaction Assign Number Range.

·      Here RD is for Invoicing and RS is for Cancellation for Invoice

·        No need of Changing 

·        

SPROàIMGàMaterial Managementà logistic invoice verificationàIncoming InvoiceàNumber AssignmentàMaintain Number Assignments for Logistic Document-àMaintain Number Range intervals for Invoicing Documents.

·         Click on Intervals

·         And you will observe the same number range is created for document as you observed in ealier steps.

       ·            If number range is not available in current year then you need to add it by the same procedure as discussed above. 

Now come back

SPROàIMGàMaterial Managementà logistic invoice verificationàIncoming InvoiceàMaintain Default Values for Tax code

Come back our next configuration is for price variance. 

SPROàIMGàMaterial Managementà logistic invoice verificationàIncoming InvoiceàDefine Mail to Purchasing when price variances occur. 

Here what happens many a times there may be variances in Price mentioned in PO and Invoice receipt, this configuration will shoot automatic mail to purchase department that there are variances in price of PO and IR.

Though it is ticked for auto mail you need to create one condition record for this.

·         Tcode NACE

·         You can maintain all output controls over here.

·         Select MR and click on condition record.

·         Select MLPP and go to condition record

·         Put company Code and execute

·         ME means buyer,7 means simple mail and 4 means send immediately you can check it with dropdown

·         Select the row and go to communication 

Next configuration is for Vendor Specific Tolerances.

 SPROàIMGàMaterial Managementà logistic invoice verificationàIncoming Invoiceàconfigure vendor specific tolerances.

·         You Can Check Currency and Negative difference and positive difference as highlighted.

·         You can Enter upper positive difference

·         Also few fields like negative allowance lower limit and small difference can be checked.

·         You can create new entry also

·         It means this will allow us 10% upside and 10% downside during Invoice

Next Configuration is for duplicate invoice check 

SPROàIMGàMaterial Managementà logistic invoice verificationàIncoming InvoiceàSet Check for Duplicate invoices 

Here you can check for duplicate invoice by ticking options available. You can click on all three but better option is to select anyone like if you click for check reference then system will check for already created invoice and it will give error or warning to create duplicate invoice.

Similarly if you click on check invoice date it will check for invoice date and vendor and stops duplicate invoice.

 

1.       INVOICE

 

After filling all basic data required check for payment TAB where you can Obser baseline date which you maintain in Vendor master data. You can select appropriate payment method

Then go to details tab where you will observe configured doc type, currency details.

You can see all contacts in contact tab

And you can write any specific note if you need it.

After this click on simulate and post it

Go to invoice document and click on display you will see all details of invoice created

You can find accounting document by clicking on follow on documents. Double click on accounting document

You can observe transaction keys, respective G/L accounts as shown in figure

So we have created invoice document 1000000042 and accounting document 5100000085 

Table for Invoice document HEADER is BKPF and that for ITEM is BSEG

Table for Accounting document HEADER is RBKP and that for ITEM is RSEG

You can go for Invoice Receipt without GR , now how to create it? 

First create PO with ME21N

Go to invoice tab in ITEM and untick GR-Bsd IV

PO 4500022571 is created

Now go for Invoice Verification

Tcode: MIRO

Fill all basic data and check for message

Simulate and Post the document. Invoice document 1000000043 is created.

Now check in payment tab you will observe payment is block 

The reason is invoice verification. Now go for Invoice Verification

T Code: MIGO

GR is created 5000001458

Now To release blocked Invoice as discussed above

LogisticsàMaterials ManagementàLogistic Invoice verificationàFurther ProcessingàRelease Blocked Invoice.

T code: MRBR

Select invoice row and click on release

After this you will see release status of Invoice.

Now enter MIRO and go to display and check payment tab invoice document will be free for payment.

2. Credit Memo

·         If the quantity and price in invoice is excess then balancing that excess quantity is known as credit memo

Thank you for reading.

UKSAP Organisation