RFQ/Invoice verification /Duplicate IR/GR and PO Based IV in SAP MM

RFQ/Invoice verification /Duplicate IR/GR and PO Based IV in SAP MM

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Invoice verification:

We will be doing all the end to end process in MM, whereas what ever we do final thing is payment to the vendor, and to make that happen in a right way. We need to process the steps below.

In the process invoice, there may be different scenarios that payment got to vendor but material quality is failed and in this case a credit memo should be issued and if we are paying extra charges like toll tax and road tax then after the PO creation then we will use Unplanned/Planned delivery cost to pay to the vendor.

When we have multiple invoices whenever there is an increase in price then vendor will be sending the extra invoice along with the original invoice, in that case we are posting the extra invoices as subsequent debit/Credit, if suppose you got to know that we paid extra to vendor then we will post the balance amount as subsequent credit.

If the vendor is paying extra amount, then Subsequent credit

If we are paying extra cost to the vendor with invoice, then subsequent debit will use.

We can see all the invoices payment status in T-code FBL1N- we can see whether payment has been done to vendor or not.

If FBL1N is green for that invoice then payment has been done, I mean payment is released to vendor or not.

Note:

Scenarios: whenever we receive goods to plant MIGO will be posted.

100 EA has been posted, now system will allow to post MIRO for quantity 100 with respect to MIGO

Lets think for same order there is an price change – June month price is 50 and July month price is 40, if PO is created in June but invoice postings done in July then we already paid to vendor but we got to know we paid extra then we can request a credit note from the vendor for remaining 10.

In the same scenario, June month price is 50 and July month is 60, then we paid less amount to the vendor, so there is a subsequent debit will happen to the vendor from our side.

It’s like after paying to the vendor, we got to know we paid extra or less then subsequent debit/credit will come into picture with extra invoice from vendor.

Credit Memo:

Suppose we have created a PO with 100 quantity and vendor gets delivered to plant and MIGO and MIRO has been posted, now we got to know in that 100, 25 are misplaced and needs to be returned to vendor.

Then we should to movement type 121 for 25 and needs to raise the credit note from the vendor.

MIRO should be posted with quantity 25 and equivalent price for that.

Subsequent Credit:

Subsequent debit it’s a type of invoice issued to supplier, whereas when there is a price change for that month and there is no change in PO with respect to quantity.

Eg: If you have a contract, Purchase orders will be created with respect to contract and every contract will be having certain price and every month it may change as per the bidding process.

If the invoice is posted for certain price and quantity and even the MIGO is done before itself, now price we have received the new prices for the month again but GR and IR has been done, now we can post the extra amount as subsequent debit credit, where vendor will be paid to company.

Credit memo will be created only if the goods are damaged or less quantity delivered, kindly know the difference between both.

Procedure: Open MIRO and select the posting as subsequent credit and maintain the quantity and price and post accordingly.

We can see this posting in PO-Purchase order history and now there will be some price difference between GR/IR/PO, so system will check for the tolerance and block the invoice if the price is not within the tolerance.

Subsequent Debit:

As I said the same scenario above, if the price in the PO is increased after payment or GR/IR postings then we need to pay the extra amount to the vendor for that we can post subsequent debit.

Even these postings we can see in purchase order history and if there is price increase above the tolerance level, then payment will get blocked and need to resolve by APAY team by manual release after the approvals.

Planned and Unplanned costs

Planned costs:

Planned costs will be defined by the supplier, whereas it will be specified in the Quote, Statement of work and invoice, when any goods are procured to plant then in quote, they will be mentioning the planned costs for delivery costs/road tax/toll fee.

Any price that mentioned after discussion of RFQ, then the costs are called as planned costs.

We canned maintain the planned costs in the PO as FRA1 and FRA2, then while posting MIGO it will not impact but while posting MIRO it will show as 2 lines with planned costs and material costs.

If the prices in the GR/IR/PO is not matching, then invoice will be blocked for price or quantity and these will be released manually.

Unplanned costs:

Any costs that’s not mentioned in the Quote and PO will be considered as Unplanned costs and these costs needs to be approved by the stakeholders before closing the PO.

Once we receive invoice that will contain the extra costs, in that case we will take approvals and mention to the APAY team to process the invoice then APAY team will updated the extra costs in MIRO directly.

Details tab- Unplanned delivery costs.

RFQ-Request for Quotation Process in SAP

Request for Quotation: Every organization to fulfill there daily activities they need to procure relevant materials which can be used for production activities and all these materials will be supplied by the vendor and each and every vendor cannot supply to particular organization and each and every organization will have specified vendors and if not they will select the vendor through RFQ process.

Concept: when organization wants to procure certain materials then RFQ process will come into picture, we will send the requirement to vendor like material, Quantity and delivery time.

While sending the RFQ we will maintain the deadline to submit the RFQ by which vendor needs to submit the RFQ prices with lead time and by that we will select the vendor.

Process:

ME41- When we know the requirement of the material, then we can process the RFQ through ME41, Enter RFQ type- we would like to go for bidding with the vendors are selection of vendors, If for RFQ select the type as AN.

Enter the RFQ data and deadline date with purchase organization, purchase group and plant/Delivery date. Once everything is filled then we can enter to next fields.

Again, enter the start and end date along with deadline with collective number.

Collective number will be maintained with material number, because if we forgot any data to pull RFQ’s then we can enter the material and check how many RFQ’s are available for one material and enter to go next screen.

Here maintains the material, required quantity with delivery date required along with storage location data, now go to header and maintain the vendor details like vendor number and address.

Maintain the output in the item overview screen, so that once RFQ is saved automatically request will be sent to vendor to perform his activity.

If required repeat the same step to go to header vendor address and maintain the other vendor address, so that automatically one more RFQ will be created with same data and sent to vendor automatically.

Note: once you maintain the other vendor don’t forget to change the output, so that there will be no confusion on vendor reaching RFQ.

 We will send normally RFQ to maximum 3 vendors as per the requirement and needs to select one from that.

ME47- Maintain the price for RFQ

Vendor will reply to RFQ through email or by ticket-if they have tool, if they reply all the details in email, we need to update the prices in ME47 for that vendor, so that it will be easy to compare the prices.

As we already maintained the deadline date, the vendor will provide all the prices before deadline and we can maintain those in RFQ through ME47.

ME49- Comparison of RFQ’s

After maintaining the prices in RFQ, the system will show the ranking in ME49 as 1,2,3

We can select the vendor as per the rankings given by SAP and needs to process as per the purchasing process.

ME9A

We will create RFQ for bidding and vendor selection, whatever we create we need to send some copy’s to higher management. We need to achieve that by ME9A, where we can take the printout and check whether it’s a rejected vendor or selected one in future.

Rejection letter to vendor:

Once the vendor selection has been done, then we need to send the rejection letters to other vendors by opening the screen ME49, compare the prices and double click on the vendor which you want to send the rejection letter. It will take you to the screen of ME41 and there you can find the rejection indicator just check and save the RFQ.

The rejection letter will be sent to vendor automatically.

GR Based invoice and PO based Invoice

GR based invoice is maintained in the vendor master, because anything related to invoice will be maintained in vendor master because its related to payment where it should link to vendor master record for functioning.

GR based, even name mentions GR-required to post the invoice. Invoice can’t be posted without GR; Invoice will go to blocked state if they are posting IV first then GR.

We can make this setting in the material master -purchasing field view.

This is the normal process where everyone will follow to pay the invoice and it is also called as 3-way match, where PO-GR-IR needs to be matched to get the payment done to vendor.

PO Based invoice

Here we will uncheck the GR based invoice, where now system will accept the IR without GR. System will accept the IR in MIRO before posting GR.

Many organizations that they will procure import, so they need to pay the customs while receiving the material from other countries, so in this case we need to pay the customs first before delivering goods.

In this case IR needs to be posted before posting GR, for this reason we are unchecking the GR based invoice, so that system will accept the IR.

Duplicate Invoice check

We all know finally vendor should get paid for the materials and for that they need to send the invoices and APAY team need to upload that to SAP with invoice number, whereas few scenarios for services we have multiple invoices like blanket PO and some other scenarios.

In those cases, we can see some multiple invoices coming with same number but APAY tram will upload all the invoices, some case one vendor will have many PO’s and they may mismatch the invoices with 1 PO number multiple invoices. For this all scenarios we have option for duplicate invoices check in SAP vendor master.

Vendor can have check that system will always check for duplicate invoices

Process: we need to do the backend settings for MIRO to come this possible.

Step:1

SPRO  

            Materials Management

                                    Invoice verification

                                                            Define attributes of system messages

Maintain the number 108-which will be for invoice system messages

Online -E and Batch- E and E is for Error.

Step 2:

SPRO  

            Materials Management

                                    Invoice verification

                                                Configure Automatic posting

                                                                             Incoming Invoices

                                                                                                Check for Duplicate invoices

Select the company code—check company code, check reference, check invoice date

Step 3:

In vendor master we need to maintain the double check tab inn payment transactions account view, so that for this vendor the settings will work.

We can maintain all the vendors these settings, so that it will work for all the vendors.