Invoice Verification vs. Logisitics Invoice Verification

Does anyone know the main difference between the old Invoice Verification functioanlity and the new Logistics Invoice Verification functionality in MM?

An LIV posting results in two documents, one for MM and one for Accounting. Conventional IV posting only results in one accounting document.

We implemented LIV just a couple of years ago and find it much faster than Conventional because of the background job processing. It is true that you could manually enter each invoice in LIV and it wouldn't seem that much different. But with batch processing, we enter 4 fields of information in the MIRA screen and run the RMBABG00 program every 1/2 hour to process all the items. If everything matches, it sets up the accounting document with less entry. It also allows the invoice to be entered prior to receipt. Then when the item is finally received and it matches it will be paid.

Be aware you now have to have to add a task of someone monitoring all the invoices that don't match but we feel in the long run we have still saved half of the entry time from entering each invoice online individually in conventional.

Logistics Invoice Verification was developed to take into account requirements (distributing MM and FI, managing mass data) that were technically not possible in the conventional Invoice Verification component.

Certain functions that were possible in conventional Invoice Verification have deliberately been omitted in Logistics Invoice Verification. It is not possible, for example, to post invoices directly to a material or a G/L account without any other reference.

Other functions, on the other hand, have not yet been implemented. Consignment withdrawals, for example, are settled in conventional Invoice Verification.

The following functions in conventional Invoice Verification are not possible in Logistics Invoice Verification:

- Verification of invoices with no reference in the system to a purchase order or a goods receipt
- Posting directly to a G/L account, asset or material
- Changing the account assignment in the purchase order
- Simulation of documents

Some new functions are only possible in Logistics Invoice Verification, including:
- Unlimited multiple selection
- Manual invoice reduction
- Automatic invoice reduction
- Invoice verification in the background
- Verification of invoices with instalment conditions
- Posting across company codes

You can use the conventional Invoice Verification component and Logistics Invoice Verification along side each other. You could, for example, post all invoices with a system reference in Logistics Invoice Verification and those without in conventional Invoice Verification.

Copy Vendor Code Master from One Company Code to Another

You have 2 options:-

1. Create a batch input session that can be executed in the same client.

2. Create an external file that can be executed in the other client.

FK15 - Transfer Vendor Master Data from Source Company Code: Send

FK16 - Transfer Vendor Master Data from Source Company Code: Receive

Print cheques thru F-58 (post & print) option

Print cheques where there are no open items or invoices e.g. advance payment to vendor or some one time party, where no open item exists.

When you complete the transaction F-58, go to transaction code FBZ5 and give the document number which you generate using F-58.

Automatic Exchange Gain/Loss for Vendor

To configure the automatic exchange gain/loss general ledger account determination :-

• OBA1
• Double Click on Exchange rate difference in open items
• Double Click on the General Ledger account
• Enter the accounts for vendors for the differences
• Realized Loss
• Realized Gain
• Valuation Loss 1
• Valuation Gain 1
• Valuation Balance Sheet adjustment 1
• Translation Loss
• Translation Balance Sheet adjustment loss
• Translation Gain
• Translation Balance Sheet adjustment gain

Accounts may be entered for balance sheet adjustment accounts to segregate Revaluation entries for vendor and debtor.

Clearing in Local Currency

Effect of clearing in Local currency :-

Purchase USD 1000 at 1 USD = 2 XXD. The accounting entry in Local Currency is

Purchase account Dr 2000
Vendor account CR 2000

Paid when the exchange rate is 1 USD = 1.8 XXD. In this case, the party is supposed to pay local currency equivalent to Foreign Currency and in this case will be 1800 XXD. When he pays XXD 1800, the following accounting entries area passed :-

Vendor account DR 2000
Bank account CR 1800
Gain on Foreign Currency fluctuation CR 200

At the time of clearing, the system expects the amount to be at the present exchange rates and the difference is posted to the Foreign Currency rate differences account. If this differences are not required or the payment in local currency is expected to be paid at the exchange rates prevailing at the time of sale/purchase transaction took place, then there is a facility in company code Global settings screen to elimate the differences. In this case and in the above example the receipt would be XXD 2000. The differences are not recorded.

To set the clearing in local currency :-

• OBY6 - Company code Global data
• Double click your Company code
• Tick the no ex. rate diff. when clearing in loc. curr

Check the clearing of GR/IR account

I check the unclear documents as follows:

1. Check your settings for program SAPF124 in transaction OB74

2. When executing program SAPF124, tick the "GR/IR account special process" flag and select "Detailed list with error
log"when running SAPF124. Review the log to see why the GRIRs are not clearing

3. Run transaction MR11 in "Prepare list" mode to see why the GR IR's are not clearing.

Payment Terms Plus No. of days/Months

OME2 / OBB8 - Define Terms of Payment

Create a new Payment Term or Copy an existing one and call it say "EX45"
Give it a 'Sales text' - appears on sales invoice if you will use it for Customers
Select applicable for Vendors and/or Customer - tick boxes
Leave 'Baseline date Calculations' blank
Choose 'Document Date' as default for 'Calculation of Baseline Date' - radio button
Leave payment block / payment default blank - unless you wish to have defaults applicable for this payment term only
In the 'Payment Terms' Section - on the 'Term 1' line leave everything blank except put 45 in the 'No/days' column

This means that when you choose this payment term, the baseline date is adopted from the document date and the due date is
equal to baseline date PLUS 45 days.

Terms of Payment

Customer payment time-frame allowed and the discounts amount given for early payment if any.

Day Limit - e.g. if you enter 15

An invoice date on or before the 15th of the month are payable on the last day of the next month

An invoice date after the 15th of the month are payable on the 15th of the month after the next month.

If a customer is also a vendor

You can have the payment program and the dunning program clear customer and vendor open items. You can also select the vendor line items, when you display the customer line items for this account.
Before you can clear between a customer and vendor account, you must:

1. Create a customer master record for the vendor that is also a customer.
2. Enter the vendor account number in the Vendor field in the control section of the general data in the customer master record.
3. Enter the customer account number in the Customer field in the control section of the general data in the vendor master record.
4. Click in the box next to the Clrg with vend. field or Clrg with cust. field (this field will appear in the Automatic Components payment transactions section, only after Vendor field in the control section have been keyed) in the company code data in both the customer and vendor master records. In this way, each company code can decide separately whether it wants to clear the customer with the vendor.

Reused common GL Account Posting (transaction F-02)

Certain GL Account Posting might be repeated, you can do a copy of the posting entry and only key in the amount that are always different.

e.g. Dr 12345 100
Dr 45678 50
Cr 98765 150

Steps:-

• go to transaction FKMT - Account Assignment Model
• Key in the Act Assignment mode e.g. XYZ - Names related to the Entry
• Click Goto -> Line items
• Key in the DR/CR enteris. company code, GL account, TX, BA, Cost Center etc.
• Save

During G/L Account Posting - F-02

• Click the Act Assignment model button

Filled in the Act Assignment mode Names and hit enter to update the entries

Configure the Monthly fixed amount payment

Recurring Document such as fixed phone charges

FBD1 - Enter Recurring Entry
Page 1
Recurring entry run
First run on - when you want to start the recurring entry posting
Last run on - when you want to stop this recurring payment
Interval in months - weekly or monthly payment
Run date - which days you want it to post e.g. 28th of every month

Document header information
Document type Currency/rate
Reference document
Document header text

First line item
Key the entry e.g. Dr/Cr key, General Ledger Code

Continue the rest such as Amount......

At the end of the month, you have to run F.14 - Create Posting Documents from Recurring Documents
Menu steps: Accounting - Financial Accounting - Accounts Payable - Periodic processing - Recurring enteris - Proceed

General Selections
Calculation period e.g. XX.XX.XXXX

Output Control
User name

You need to used SM35 to Process the Batch Input Session. Check the session log for the Accounting Document Numbers.

How To Run Automatic Payment

Procedure on how to run automatic payment. Just follow these steps and you will be fine.

Automatic Payment program ( /nF110)
Db Inventory 100
Cr Vendor 100

Db Vendor 100
Cr Cash Clearing A/c 100

Db Cash Clearing A/c 100
Cr Bank A/c 100

1. To create a Cash clearing GL Account(A/c no. 113104) in (/nFS00)
- Make sure you check Open Item Manage and Line item Manage.

2. Goto /nF110
- in the Menu, Environment -> Maintain Config
then you will see:
- All company codes
- Paying company codes
- Payment methods in Country
- Payment methods in Company code
- Bank Determination
- House Banks

Do no changes for the All company codes, Paying comapany codes and Payment methods in country.

In the Payment methods in comapny code give your companies Address in the Form View field.

Then go to House Banks.

Give your Company Code and hit enter
Select the company code 3000 with Currency as USD and copy it give your own.

House bank:

Hit enter and then say copy all and then give your:
- Account ID
- Bank account Number (9 digits) :
- G/L account no:(cash account 113100)

Then save it and you will get 1 entries copied.

Select Bank Determination and then give your compnay Code and then select
- Ranking order with Pmt Type C and Currency USD , then change the House Bank from 3000 to your House bank no.
- Bank Account select 3000 C USD 3000 113101 and then copy it and give your information
vp02 C USD VP02 113104
and save it

-Available Amounts select 3000 3000 5 USD
999999 9999999 and then copy it to
vp02 vp02 5 USD
999999 9999999
and save it

Ignore Value date and Expense/Charges.

Next Step is to create Check Lot

Goto /nf110
Enviroment -> Check information -> Number Ranges

Give your information
Paying Comapany code:
House Bank:
Account ID:

and then click on change icon(pencile icon)
then click on create, give the following information
Lot Number:001
Check Number:
To:

Short Info:

and save it.

and next is to go to /nse38 and give the program name RFFOUS_C

Note:
RFFOUS_C(to remember, US-Check) is the one you compied in Payment Methods in country under the Environment -> Main Config

Then check on variant and click on change give your variant(VP02) and select copy from CHECK to your variant
(VP02)
and then click on change
and give the following information:
Program run date: (blank)
Identification Feature:(blank)

Paying Comapany Code: VP02
House Bank:VP02
Account ID: VP02
Check lot number:001

Printer: LP01 and check Print Immediately
give Number of sample printouts : 0
and then click on variant Attributes (give your own variant) then save it

Now give /nf110

Rundate:09/21/2006
identification:vp02

In the parameter tab,
Company code Pmt method Next P/date
VP02 C 09/30/2006

Vendor: 1 to 999999

In the Additional Log tab,

select check

Due date check
Pmnt methoed selection if not succesfull
Line items of hte payment documents

In the print out/data medium tab,

Program Variant
RFFOUS_C VP02

and then save it
and then go to status tab and you will see parameters have been
entered.

then click on proposal,
start date: check start immediatly
start time:

and then execute it

Hit enter key till you get started, running and created.

Go to edit -> proposal -> Proposal List

See whether your proposal is been executed without errors.

Note:
If there is error goto edit -> Proposal -> delete proposal.
Not due ones are not payed.

and then go back
and then click on payment run and execute it with start immediatly hit enter till it is 2 generated and 2 completed.

Then click on Printout execute it and then give your Job name(change the last ? to 1) in the status bar you will see your job name to be scheduled.

Make sure the payments are don in /nfb02
giving the document number(2000000000) and make sure
2000000000 ZP (amount)
2000000001 ZP (amount)

Then go to /nsp02, to see the print outs preview.

Its all done.

Fixing of Limit for Auto Payment Programme

Is there any provision in SAP to Fix the Allocation of Amount for the Auto Payment programmes. If so, please
describe about the same.

Anand Kumar

Use tcode OBVCU, here you can enter amont to be available for the payment program.

Kittu

Thanks for your Information.

I understand this code relates to the technical people it seems, can you please let me know more about this code and process for fixing the same.

Anand Kumar

This settings should be made by the functional consultant and not technical team, by OBVCU, you get the screen where you can click your company code and then click bank determination, here you can allocate amount for outgoing and incoming
payments for each bank. I believe that you are referring to amount to be available to payment program. If you are talking about something else, please let me know.

Kittu

Thanks for the information that you have shared with the group.

Is it possible that, when a co has say 3 banks and in the ranking order for auto payment run, can we assign max amount for each bank to pay and if the limits are reached the payment is from the next bank. If possible how to do this.

Siddharth

Yah you can rank the 3 House Banks of your Company and then max limit for each Bank. Thereby one after another based on the max limit set the payments will automatically be made.

The procedue for doing the above customisation is as follows: -

1) SPRO-FA-AR&AP-Business Transactions-Outgoing Payments-Automatic Outgoing Payments-Payment Method/ Bank selection for payment program-Setup Bank Determination for Payment transactions

2) Select your Company Code

3) Double click Ranking Order

4) Select New Entries Button

Payment Method Curre Rank Order House Bank
C INR 1 ICICI
C INR 2 HDFC
C INR 3 SBI

5) Double Click Bank Accounts
Select new entries button
House Bank Pay.Method Curr Acct ID Bank Sub Acct
ICICI C INR ICICI1 200101
HDFC C INR HDFC1 200102
SBI C INR SBI1 200103
Then Save

6)Double click Available Amounts
Select new entries button
House Bank Acct ID Days Curr Availability Outgoing Payment
ICICI ICICI1 999 INR 500000
HDFC HDFC1 999 INR 800000
SBI SBI1 999 INR 600000
Save

I hope I am clear. If any doubts pls get back.

Ashok

Thanks a lot for the information. It works.

FBL1 - Display Vendor Line Items - Configure the line item settings

• 07F4 - Choose line items selection criteria
• O7Z3 - Define line layouts
• O7R1 - Define total variants

How to Void a Cheque/Check?

Accounting->Financial Accounting->Accounts Payable->Environment->Check information->Void-> Unused checks / Issue checks / Cancel payments

A cheque was generated for a vendor, but was voided because the amount is wrong. A new cheque is generated, but again it
was wrongly created. So, it needs to be voided but there is an error message during cancellation of this payment "Voided cheque cannot be processed".

When you void a cheque/checks you have to reverse and reset the payment document.

Accounting->Financial Accounting->Accounts Payable->Document->Reset Cleared items

After reversing, the payment documents becomes an open items (unfinished transactions) to be clear.

Then re-process the payment.ac

Assign the Vendor Number Range

XKN1 - Assign the number range to the Vendor Account Group

After creating the number range, you need to assign it to a Vendor Group with OBAS.

Now, the different vendor group numbering will not overwrite each other.

What is a Vender Account Group?

Usually, company use different Vendor group for different categories of vendor. Each group can be separated as regular or irregualr vendors or one-time vendors.

Each vendor master can have different fields set as required, optional or suppressed.

Start transaction OBD3 to configure the Vendor Account Group for :-

• General data - Valid for vendor master irregardless of the company code used.
• Company code data - Valid at company code level only.
• Purchasing data - Mainly for MM.

Control the Vendor Master Fields

You can control the Vendor Master display of fields in transaction code OBD3. You will need to set this for each Vendor Account Group.

For example, if you does not want to checked for duplicate invoices: Vendor #, Reference #. Date.. in the system.

Goto transaction OBD3,
double click on the Vendor Account Group,
double click on the Company code data
double click on the Payment Transactions
Change the Double invoice validation field to required or optional.

Enter Invoice for Purchase Order

4.6c

MIRO - Enter Invoice

To change the Tax Amount

• Click the Tax Button
• Untick the Calculate Tax
• Change the Tax Amount and ignore the warning for the differences

How is Park Invoice Different from other Invoice

How is park invoice differ from other invoice?

Ashish

In Park document, enter the invoice data. It does not matter if:

- Your entries are complete or incomplete
- The balance of the document is zero or not

The system does not carry out any checks, as you can correct or add more information to a parked document later on.

In two scenerio, Invoice document will be parked.

1. An employee is interrupted or clarify certain issues when entering an invoice. He or she can park the document and continue processing it later on with save at that stage without entering data twice.

2. Organizational process is in such a way that one employee parks invoices without checking them. Another employee then performs invoice verification and posts the parked documents, possibly after changing them

There is difference between Document "Park" and "Hold".

Hope it cleared the concept.

Rahul

Is it possible to make the parking function automatic?

My client wants Invoices to be parked automatically after entering . It should not be available for payment.

Later on another person looks at all parked invoices, verify and release the same for payment run.

Mitesh V. Desai

I could not understand you a means of Automatic function. Duroing invoice entry you use /nMIRO or /nMRHR transaction code and for Invoice parking /nMIR7.

You can use Invoice verification in the background as customizing IMG-MM-LIV-define Automatic staus change.

Rahul

My client’s requirement is very straight forward but I am not having the correct solution.

Client wants to enter invoice through MIRO which should be always parked on saving and not available for payment.

Later on another person looks at all parked invoices and release it for payment manually.

Do you have any solution for this ?

Will you please let me know the detailed configuration settings for Invoice verification in the background as customizing
IMG-MM-LIV-define Automatic staus change ?

Mitesh V. Desai

Here is solution for your client's specific requirement.

1.Use TR "MIRO" for entering Invoice at first stage. Then click for "HOLD". It will create invoice document no.

2.Use TR "MIRO", Click on "Show Worklist". Search created invoice document no. in "Held Documents" which will be under held invoice below "Worklist" .

3.Select that held invoice document and double click on it and "Simulate" as regular after checking (e.g. other person).

4.Then Post/save it. After posting, refresh which will result that invoice document under held category is disappered.

It will give what required by your clients as Document holding and posting through MIRO. He can prepare so many documents under HOLD condition and post it later as and when required after editing or approving.

Configure the Payment Program

FBZP - Maintain Payment Program

ALL COMPANY CODE - Set your company code to be avaliable to the payment program.

PAYING COMPANY CODE DATA - The company code used for payment.

PAYMENT METHOD IN COUNTRY - Payment by checks, Bank transfer etc.

PAYMENT METHOD IN COMPANY CODE - Futher details of payment method.

BANK DETERMINATION - Bank to used

HOUSE BANK - Bank accounts used by company