SAP Conventional Versus Logistic Invoice Verification

Can any one let me know the basic difference between Logistics invoice verification and normal / conventional invoice verification?

MRHR for other goods receipts.

Logistics Invoice Verification [MIRO] was developed to take into account requirements that were technically not possible in the conventional Invoice Verification component, such as distributing MM and FI to separate systems.

All the functions in conventional Invoice Verification are available in Logistics Invoice Verification. If required, you can use conventional Invoice Verification and Logistics Invoice Verification alongside each other.

The following functions in conventional Invoice Verification are not possible in Logistics Invoice Verification:
1. Verification of invoices with no reference in the system to a purchase order or a goods receipt.
2. Posting directly to a G/L account, asset or material
3. Changing the account assignment in the purchase order
4. Simulation of documents

Some new functions are only possible in Logistics Invoice Verification :
1. Unlimited multiple selection
2. Manual invoice reduction
3. Automatic invoice reduction
4. Invoice verification in the background
5. Verification of invoices with installment conditions.
6. Posting across company codes.

Two more things to note :-
1. Even though LIV can do posting across company codes it cannot do this if there is a variance.
2. LIV cannot operate when the PO is for a 'one time vendor'. These one time vendor purchase
orders can only be matched using conventional invoice verification.

Finally, Points 1 and 2 are possible in LIV but you need to change the configuration to allow posting direct to GL account.

Please refer to :-
IMG : Material Management -> Logistics Invoice Verification -> Incoming Invoice ->
Activate Direct posting to G/L Accounts and material Accounts

SAP Important Accounts for Invoice Verification

When you post an invoice, the system selects the accounts to be posted. Account assignment is based partly on your entries when you create an invoice and partly on information stored in the system.

Your entries provide the following information:
- Is the invoice posted as a net or as a gross amount?
- Which vendor account must be posted?
- Which G/L accounts must be posted?
- Which amounts must be posted?

The material master record provides the following information:
- Which valuation class does the material belong to?
- What type of price control is the material subject to?
- Which account must be posted for the material?
- Is the stock available smaller than the quantity invoiced?

Posted documents provide the following information:
- What is the purchase order price?
- Has there been a goods receipt for the purchase order?
- To post invoices correctly, your system administrator must define the accounts in the chart of accounts and the actions to be taken for the different postings when the SAP system is being installed in your company.

The SAP accounts are defined in a chart of accounts. The following accounts are particularly important for Invoice Verification:

Vendor Accounts
There is a separate account in the sub-ledger for each vendor that all amounts concerning this vendor are posted to . Making a posting to the vendor account is not the same as making a payment; payment is only made when the Financial Accounting department posts the vendor's payment to a bank account.

Stock Accounts
In the R/3 System, you do not set up a separate account for each material. Instead, different materials with similar features are grouped together in a common account (for example, raw materials: acids). The account relevant for a material is defined in the material master record when a material is created. The system only posts to the stock account when a price difference occurs for an invoice.

GR/IR Clearing Accounts
The GR/IR clearing account is an "intermediate" account between the stock account and the vendor account. At goods receipt, the net invoice amount expected is posted to the stock account. The offsetting entry is posted to the GR/IR clearing account. This posting is then cleared by an offsetting entry on the vendor account at invoice receipt.

Tax Accounts
The system makes postings to special tax accounts when invoices include tax.

Price Differences Accounts
Price differences have to be posted to a price difference s account if price differences have occurred in an invoice and when invoices are posted net and no posting can be made to the stock account.

Cash Discount Clearing Account
When you post an invoice net, the cash discount amount is taken into account in the invoice, it reduces the value of the items; the offsetting posting is made to the cash discount clearing account, which is then cleared when payment is made.

Freight Clearing Account
The stock account is debited with the planned delivery costs at goods receipt and the system makes the offsetting posting to a freight clearing account. This posting is then cleared by an offsetting entry to the vendor account at invoice receipt.

SAP No tax information during consignment Settlement

Finance will received this SAP Error Message when they tried to do a consignment settlement without the relevant consignment vendor info record:

No tax information found

Message no. M8 732

Diagnosis
For the system to settle withdrawals, the tax information has to be available. No tax information could, however, be found. This can have one of the following reasons:

Plant XX has no purchasing organization assigned to it.
Plant XX has more than one purchasing organization assigned to it, but no standard organization.
For vendor 0000099099 and material ABCDEFGHIJK in plant ZZ and purchasing organization ALL, no tax code has been entered in the consignment/ pipeline information record.

System Response
The system is unable to settle withdrawals.

Procedure
Check the plant-to-purchasing-organization assignments in Customizing and make any necessary changes.

Plant -> Purchasing organisation

Plant -> Standard purchasing organization

Check the relevant purchasing information record and maintain the tax code if missing. Settle the withdrawals again

To be able to settle any consignment withdrawals, an info records have to be created by the purchaser.

In MRKO where the error message is display, click the material documents. In the material documents, click the Partner tabstrips and you will be able to see the consignment vendor code.

Check ME13 to ensure that the consignment info record for the vendor have been created.

If it have not been created, the user have to input it with transaction ME11.

Could you also please, check the following:
1. Check the consignment info record is active in tr: OMEV.

2. A consignment info record exist with the control indicator entered there (tax code).

3. Determine the purchasing organization to read the info record.
- Determination via the plant of the withdrawal (TA: OX17): several purchasing organizations can result from this.
- If no purchasing organization can be found, you cannot settle the withdrawal.
- If exactly one purchasing organization is found, this organization is used to determine the info record.
- If several purchasing organizations are determined, the info record is determined with the standard purchasing organization

The cause might lie with the selection criteria in tr MRKO.
If only company code and plant are entered, the system lists all the pending consignment liabilites between the vendor and the plant.
If there exist more than one info records between the vendor and the the plant and one of the info records contains no tax code, the system issues error message M8 732 'No tax information found' to every line item including the one with tax code maintained in the info record.
But if you enter the consignment material or material document you need to settle on the selection screen, the system
will settle the vendor consignment liabilites successfully provided that tax code is maintained in the info record. It is the system logic.

Hope above information can help you to clarify this issue.

SAP Notes Reference:
140675 - Consignment: Determination of tax code transition
350450 - MRKO: List display
139792 - MRKO:Tax indicat via consignmt info rec. as of 4.0

Consignment Process - Settlement

I am having a problem with consignment settlement.

While trying to settle the consignment in MRKO, I am getting the following error message:

Consignmnt settlement: No message was found for partner 123/company code 1000.

Is there any message indicator which needs to be turned on?

You can goto tcode MRM1, specify the condition type = "KONS" for consignment and Company code = 1000

Remember not to specify the partner in the condition record.

Then proceed to MRKO to do your consignment settlement.

I did what you suggested and now I am able to settle the consignment.

I am able to see the invoice document that is created.

Thanks once again for the help!

SAP Use of Invoice Plan in SAP

What is significance of invoice plan and how do we configure in R/3?

Through the use of Invoicing Plan for leasing agreements and such like, you aims to considerably reduce the manual data entry effort in the purchasing and invoice verification (A/P) department.

The invoicing plan enables you to schedule the desired dates for the creation of invoices relating to the planned procurement of materials or services independently of the actual receipt of the goods or actual performance of the services. It lists the dates on which you wish to create and then pay the invoices.

You can have the system create the invoices automatically on the basis of the data in the purchase order, thereby triggering payment of the vendor. It is also possible to enter the invoice for an invoicing plan manually. It is recommended that the invoice shall be created via Logistics Invoice Verification ---> Automatic Settlement --->Invoicing Plan Settlement. This
transaction can also run in the background.

Following are necessary customizings and preconditions for using the Invoicing Plan functionality in SAP -

1) You must maintain the settings in Customizing for purchasing (for example, invoicing plan type, date categories, date descriptions, and date sequence proposals). The related path is IMG ---> Material Management ---> Purchasing ---> Purchase Order ---> Invoicing Plan ......

2) The Purchasing document with FO Document Type (Framework Order) must be used. This document type requires that a validity period be entered in the PO header. This specification is adopted in the invoicing plan, provided that this has been predefined in Customizing for the relevant invoicing plan type.

3) The purchase order item must have an account assignment.

4) The Logistics Invoice Verification must be used.

5) The vendor must have agreed to use the automatic invoice creation facility (since we will use automatic settlement to create the invoice). In this case, the 'AutoEvalGRSetmtDel.' indicator must be flagged in the vendor master record.

Furthermore, once Purchase Order is created with order type FO, ensure that the indicators for GR/IR control have been set correctly on the item detail screen. The Goods Receipt indicator may only be set in combination with the Goods Receipt Non-Valuated indicator. The Invoice indicator must be set. For the automatic creation of invoices, the ERS (Evaluated Receipt Settlement) indicator must be also set. A further prerequisite for automatic settlement is that a tax code must be entered in the purchase order.