Logistics Invoice Verification

MM: Conventional Invoice Verification Vs Logistics Invoice Verification
Applies to:
ERP Upgrade 4.6C (or) earlier Version to ECC, Material Management (MM) Logistics Invoice Verification. For more information, visit the Enterprise Resource Planning homepage.
Summary
Invoice Verification is one of the important links between MM and FI. In earlier days, Conventional Invoice verification used to be followed where there is no invoice document is involved for Invoice verification process. In Logistics Invoice Verification, an Invoice document gets created and in the background, FI document is posted which is more user-friendly for user to understand the Invoices / Credit memos processing for Vendor. In this article, Configuration, scenarios implementation, and custom modifications in MIRO is explained in detail when Invoice verification is migrated from Conventional Invoice Verification to Logistics Invoice Verification in SAP. In SAP Materials Management, Logistics Invoice Verification (LIV) has the below features: LIV completes the material procurement process, which started with the purchase requisition and/or purchase orderand resulted in a material goods receipt. LIV allows invoices that do not originate in materials procurement (such as services, miscellaneous expenses) to be processed. LIV processes credit memos, either as invoice reversals or return deliveries. LIV can perform invoice verification in background. Authors: Janakiram Katakam
Company: Intelligroup Inc Created on: 18 Nov 2010
Author Bio
Janakiram Katakam has over 14 years of experience in Supply Chain Management. He is a Senior Business Consultant with 7+ years of experience in PP/PP-PI/MM/WM/SNP Implementations / Upgrades and technical Support. He has delivered on many complex projects in Energy Sector, Pharmaceuticals and Consumer Products Industies.
SAP DEVELOPER NETWORK | sdn.sap.com 2010 SAP AG
BUSINESS PROCESS EXPERT COMMUNITY | bpx.sap.com 1
Table of Contents
Introduction to Invoice Verification ...................................................................................................................... 3 Terminology ........................................................................................................................................................ 3 Conventional Invoice Verification ....................................................................................................................... 4 Logistics Invoice verification ............................................................................................................................... 4 Basic Configurations for Logistics Invoice Verification Implementation: ............................................................ 5 Invoice Document Number Range .................................................................................................................. 5 Assign Number Range to Invoice Transaction: .............................................................................................. 5 Posting to Directly G/L account and Material a/c: ........................................................................................... 6 Convention Invoice Verification Scenarios demonstration: ................................................................................ 6 Logistics Invoice verification Scenarios demonstration: ..................................................................................... 8 Posting Invoice against Purchase Order / Delivery Note: ............................................................................... 9 Posting Invoice / Credit Memo against G/L Account directly ........................................................................ 10 Posting Invoice / Credit Memo against Material directly ............................................................................... 10 Typical Upgrade Custom Modifications in MIRO: ............................................................................................. 11 Related Content ................................................................................................................................................ 12 Disclaimer and Liability Notice .......................................................................................................................... 13
Introduction to Invoice Verification

Until SAP 4.6C, conventional invoice verification is available using transaction MRHR where only FI document gets generated. From SAP 4.7 Version, it is mandatory to implement Logistics Invoice verification (LIV) where Invoice Document as well as Finance document will be posted. Some of the important differences between conventional invoice verification and Logistics Invoice verification (LIV) are described below:
Conventional Invoice verification Transaction - MRHR Only FI document is posted Posts Invoice / Credit memo / Subsequent debit memo / subsequent credit memo Procurement and FI should be implemented in SAP Invoice Verification in background is not possible it is cumbersome to execute the multiple Pos , Direct postings to G/L account, Direct postings to Material together in single invoice
Logistics Invoice Verification Transaction - MIRO Both Invoice and FI documents are posted Posts Invoice / Credit memo / Subsequent debit memo / subsequent credit memo Procurement and Finance can be implemented , even if, they are available in different systems Invoice Verification in background is possible it is user-friendly to execute the multiple Pos , Direct postings to G/L account, Direct postings to Material together in single Invoice
Terminology
Invoice: Vendor Invoice is posted against the Purchase Order for Goods received to enable the Finance department to pay to vendor. In this case, FI document is posted such that GR/IR clearing account is debited and Vendor account is credited. Credit Memo: Credit memo is reversal of Invoice. Vendor credit memo is posted against the Purchase Order for Goods received to enable the Finance department to receive back from vendor. In this case, FI document is posted such that GR/IR clearing account is credited and Vendor account is debited. Subsequent debit memo: it is additional invoice posted to pay vendor against same purchase Order for which already Invoice is already posted. In this case, FI document is posted such that GR/IR clearing account is credited and Vendor account is debited. Subsequent credit memo: it is a credit memo posted to reverse payment to vendor partially against same purchase Order for which already Invoice (or) credit memo is already posted. In this case, FI document is posted such that GR/IR clearing account is credited and Vendor account is debited. Transaction: During vendor Invoice Posting Transaction as Invoice need to be used. For Vendor Invoice Reversal, Transaction as Credit Memo option needs to be used. Subsequent debit and Subsequent credit options are used for subsequent debit or credit memos. Balance: System displays Balance amount by considering the debit and credit amounts entered in MIRO upon simulation of Invoice data. Invoice Date: Date of Original Invoice. This Date will be copied into Baseline Date to calculate the Due date as per Payment Terms. Posting Date: Posting date is defaulted to Current Date. Based on posting date, system posts the FI document entries into respective Months. Reference: Optional Field which can be used for Vendor Invoice reference text Amount: The Amount to be invoiced for Vendor
Currency: Currency value gets copied from PO (or) user can manually enter for direct G/L account and Material postings. Tax Amount: it can be derived from Tax Code by checking the Calculate Tax check box (or) enter the tax amount manually. Payment Terms: Payment Terms get copied from PO into MIRO whenever Goods/Service Items or Goods/Service items + planned delivery costs options are chosen. User can manually change the Payment Term also. Due on: Due date gets calculated based on Base Line Date and Payment terms. (Due Date = Base line date + No of Days from Payment term). Pmnt Block: User can choose the appropriate Payment Block. If High/Low amounts are posted during Invoice posting, system automatically blocks the invoice. Subsequently, blocked invoice needs to be released before FI clearing. InvoiceRef: This field is used for Invoice cancellation through credit memo by copying the due date from prior posted invoice by placing V in this field. Exch Rate: For Company Code currency Invoice postings, System defaults 1.00000 as Exchange Rate. For Non-Local Currency Invoice Postings, system defaults TCURR Exchange Rate which can be changeable, prior to copying the PO line items into PO. Vendor: Vendor get copied from PO during vendor Invoice and Credit Memo posting. For Direct Postings to G/L account (or) Material, Vendor needs to be manually entered. Vendor Address and Bank account details are displayed. Assignment: Assignment is a Text field which gets displayed in FI Document. Header Text: Header Text is a Text field which gets displayed in FI document.
Conventional Invoice Verification

In the convention invoice verification, where there is no invoice document get generated and only FI Document gets generated for payment processing. MRHR is the transaction used for conventional invoice posting. In order to post the subsequent debit memo and subsequent credit memo, Sub cred/deb indicator to be chosen. MRHR transaction is executed through multiple screens and user needs to enter data through various screens and more confusing when many postings are executed through single invoice. No separate configuration required for conventional invoice posting.
Logistics Invoice verification

In the Logistics Invoice verification, there is an intermediate document as Invoice document will be created between Material Document and FI document so that it is possible to use external systems also to post the invoices in SAP. Transaction MIRO is used for logistics invoice verification and it has a single screen where all the tabs are provided for header data as well as items data to post the invoices for vendor and/or G/L account and/or Material simultaneously. MIRO is very user friendly transaction compared to MRHR Additional functions available with Logistics Invoice verification compared to Conventional Invoice verification are: 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.
Basic Configurations for Logistics Invoice Verification Implementation:

In Order to implement the Logistics Invoice verification, Invoice document Number range need to be assigned for Invoices as well as credit memos.
Invoice Document Number Range Manu Path: SPRO > Material Management > Logistics Invoice verification > Incoming Invoice > Number Assignment > maintain Number Assignment for Logistics Documents > Maintain Number Range Intervals for Invoice Documents Transaction: OMRJ
Invoice Document Number range 01 is maintained with year 9999 which is applicable for all previous years i.e., that is applicable for current year also (ex: 2010 year). Assign Number Range to Invoice Transaction: Manu Path: SPRO > Material Management > Logistics Invoice verification > Incoming Invoice > Number Assignment > maintain Number Assignment for Logistics Documents > Transactions Assign Number Range
Number Range 01 assigned to Transactions RD (Invoice Posting) and RS (Invoice reversal posting). It means Continuous numbers will be used for both Invoice posting and Invoice Reversals.
Posting to Directly G/L account and Material a/c: Manu Path: SPRO > Material Management > Logistics Invoice verification > Incoming Invoice > Activate Direct Posting to G/L Accounts and Material Accounts
By checking check boxes Dir. Posting to G/L acct= active and Dir. Posting to matl = active, G/L account and Material tabs will be enabled to post the miscellaneous expenses directly to G/L account and Material in MIRO Transaction.
Convention Invoice Verification Scenarios demonstration:

The below described scenarios will help in understanding the execution mapping of Invoice, Credit Memo as well as subsequent debit memo and subsequent credit memos in conventional Invoice verification
From the MRHR Initial Screen, user needs to be select appropriate option to post the different invoices as mentioned below Invoice Posting scenario Invoice Credit Memo Subsequent debit memo Subsequent credit memo X X Invoice radio Button X X X X Credit memo radio button Sub deb/cred. Indicator
Example: For Posting the Subsequent debit memo, user needs to choose Invoice option as well as sub deb/cred indicator For Direct Postings to G/L Account and Material for any miscellaneous expenses, User needs to select the options accordingly in subsequent screens to post debit (or) credit to G/L Account / Material accordingly. As MRHR is screen- based transaction, it becomes cumbersome for user to track and post the different invoices accordingly. Below screen describes posting the direct debit posting to G/L Account. In this case, vendor is credited and G/L account is debited in FI document.
Below MRHR screen describes the direct debit posting to Material. In this case, vendor is credited and Material account is debited in FI document.
Logistics Invoice verification Scenarios demonstration:

Logistics Invoice Verification (LIV) is executed through transaction MIRO. MIRO is very user-friendly transaction where different options such as Invoice / Credit memo / Subsequent debit memo / subsequent credit memo from Transaction field chosen as below.
Invoice Header data is entered through various tabs below the Transaction field.
Basic data tab Invoice date, Posting date, Amount, calculate tax... etc are entered Payment tab Payment term details for Invoice are copied from Purchase Order / Manually entered Details Tab: vendor details are copied (or) manually entered. Tax tab; tax details are copied from Purchase Order Contacts and Note tabs are additional tabs to have additional information of vendor and Invoice details Posting Invoice against Purchase Order / Delivery Note:
PO Reference Tab is mainly used for posting the Invoice / credit memos against Purchase Order, delivery Note and bill of Lading etc for goods/service items (Material purchase costs) and/or Planned delivery costs (direct purchase expenses). Single Invoice can be posted for multiple purchase orders as well. Posting Invoice / Credit Memo against G/L Account directly G/L Account tab: Direct posting to G/L account can be executed to pay the vendor for any miscellaneous purchase expenses
Posting Invoice / Credit Memo against Material directly
Direct postings to Material account can be executed to post the vendor additional expenses to Material Stock accounts. In MIRO, Single Invoice can be posted in three tabs i.e, PO Reference tab, G/L Account tab and Material Tab also simultaneously to post the Invoices for Purchase Order, G/L account and Material accounts.
Typical Upgrade Custom Modifications in MIRO:

As users are acquainted with MRHR for Business Processes at any client, screen flows, Variants, it is expected to have MIRO for custom modifications. Transaction: In MRHR, by default Invoice option chosen. In the case of MIRO, Transaction Option (Invoice / Credit memo / subsequent debit memo / subsequent credit memo) is chosen based on previous Invoice posting for the same user. If Invoice option to be displayed always, SAP Code enhancement need to be done. Similarly, fields to be modified for Reference Document Category (PO reference Tab) and Indicator: Goods Items/Delivery Costs/Both (PO reference Tab), if required. Currency: Currency is always defaulted with company code currency in MRHR. In the case of MIRO, Currency gets copied from PO for Posting Invoice with reference to PO. For Direct Invoices postings with G/L account (or) Material, user need to be enters Currency manually. If company code currency to be defaulted always, SAP Code modification to be done accordingly. Material and Plant in G/L account tab: In MRHR, Material and Plant fields are entered for identifying the FI documents posted to Material/ Plant. In the case of MIRO, Material and Plant fields are hidden as they are not applicable when direct invoices posted to G/L account. If Material and plant need to be made available, then accordingly, SAP code modification need to be done. If these fields (Material and Plant) are required to be made mandatory and fields settings to be done accordingly. Fields Attributes Modification: if Fields Labels to be changed in MIRO in accordance with MRHR, SAP Code modification need to be done. Ex: In MIRO, Vendor is identified by field Inv. Party in Details tab. So, Inv. Party can be changed to Vendor. Similarly, Fields Lengths will be modified as per user requirements. Screen variant configuration: For MIRO G/L Account Tab has many fields and need a custom layout, if specific fields are required in specific sequence. In this case, Program SAPLFSKB and Screen 0100 will be used. Transaction: SHD0 Enter MIRO for Transaction Code Enter the any Screen Variant Name Program - SAPLFSKB Screen No 0100 Click on Create button Enter the input values for execution of transaction and system populates the layout and make the fields which are not required make them as Invisible and save the variant Similarly, the fields layouts can be created for PO reference tab. If required.
Related Content
www.help.sap.com Materials Management (MM) Logistics Invoice Verification (MM-IV-LIV) For more information, visit the Enterprise Resource Planning homepage.
Disclaimer and Liability Notice

This document may discuss sample coding or other information that does not include SAP official interfaces and therefore is not supported by SAP. Changes made based on this information are not supported and can be overwritten during an upgrade. SAP will not be held liable for any damages caused by using or misusing the information, code or methods suggested in this document, and anyone using these methods does so at his/her own risk. SAP offers no guarantees and assumes no responsibility or liability of any type with respect to the content of this technical article or code sample, including any liability resulting from incompatibility between the content within this document and the materials and services offered by SAP. You agree that you will not hold, or seek to hold, SAP responsible or liable with respect to the content of this document.

Logistics Invoice Verification

Uploaded by

Copyright:

Available Formats

Logistics Invoice Verification

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Logistics Invoice Verification

Uploaded by

Copyright:

Available Formats

MM: Conventional Invoice Verification Vs Logistics Invoice Verification

Company: Intelligroup Inc Created on: 18 Nov 2010

SAP DEVELOPER NETWORK | sdn.sap.com 2010 SAP AG

BUSINESS PROCESS EXPERT COMMUNITY | bpx.sap.com 1

MM: Conventional Invoice Verification Vs Logistics Invoice Verification

SAP DEVELOPER NETWORK | sdn.sap.com 2010 SAP AG

BUSINESS PROCESS EXPERT COMMUNITY | bpx.sap.com 2

MM: Conventional Invoice Verification Vs Logistics Invoice Verification

Introduction to Invoice Verification

SAP DEVELOPER NETWORK | sdn.sap.com 2010 SAP AG

BUSINESS PROCESS EXPERT COMMUNITY | bpx.sap.com 3

MM: Conventional Invoice Verification Vs Logistics Invoice Verification

Conventional Invoice Verification