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ERS — Evaluated Receipt Settlement is the process of settling goods receipt automatically. The Vendor Invoices are posted automatically(without actually receiving from the vendor) in the system based on the information in the purchase order and goods receipt. The settlement documents are sent automatically to the vendor in print, email or fax form.

Before implementing ERS, there must be an agreement with the vendor about ERS process and applicable conditions.

Advantages of ERS:

  • Purchase Orders can be closed quickly
  • No price and quantity variances in Invoice Verification
  • No need to receive invoice from vendor
  • Communication errors can be avoided

The following are the pre-requisites for implementing ERS:

  • In the vendor master data, the indicators for evaluated receipt settlement must be activated.
  • A Confirmation is expected for the purchase order
  • GR – IR Indicators and ERS Indicators should be activated in the PO
  • Tax code must be maintained in the PO item

XK02 — Change Vendor

XK03 -- display vendor.png

ME23N — Display Purchase Order

ME23N 1.PNG

ERS check box is activated by default, if you flag a vendor as ERS vendor.

ME23N -- GR.PNG

MRRL is the transaction code to carry out ERS functionality.

MRRL.PNG

In TEST mode

  In Test Mode.PNG

The Postable column is updated with ‘X’, if there are no errors in posting an invoice. It implies that invoice can be posted. If there are any issues with goods receipt or configuration, the relevant error message is displayed  in the Info Text Column.

In PRODUCTION mode

     

      In Production mode.PNG

You can view the document by clicking the document numbers in the above screen.

5000000013 — Material Document

5105600113 — Invoice Document posted in MM

40004 — Invoice Document posted in FI

The invoice is posted for relevant PO item by determining the prices entered in PO, terms of payment, tax information and delivery quantity entered in goods receipt.

Important Configuration Steps for ERS:

Maintain Number Ranges for Accounting Documents

SPRO –> Material Management –> Logistics Invoice Verification –> Incoming Invoice –> Number Assignment –> Maintain Number Assignment for Accounting Documents

Transaction Code — OMR4

Number Ranges for Accounting Docs.PNG

Click on Document Type in Invoice Verification and in the subsequent screen double click on MRRL transaction code.

Acc doc number range.PNG

Acc Doc number range 1.PNG

In the above screen, we maintain the document type for ERS. Now maintain number ranges for document type RE and number range 51.

Maintain Number Ranges for Logistics Documents

SPRO –> Material Management –> Logistics Invoice Verification –> Incoming Invoice –> Number Assignment –> Maintain Number Assignment for Logistics Documents –> Maintain Number Range Interval for Invoice Documents

Transaction Code — OMRJ

No Range for Logistics Docs.PNG

Create a number range and assign it to transaction RD and RS in the below path

SPRO –> Material Management –> Logistics Invoice Verification –> Incoming Invoice –> Number Assignment –> Maintain Number Assignment for Logistics Documents –> Transaction – Assign Number Range

Table/View — V_T003R

Transaction - No Range.PNG

Once the Invoice is posted, the settlement documents are sent to vendor automatically in print, email or fax form. The below mentioned Message Determination configuration is required for this action.

SPRO –> Material Management –> Logistics – Invoice Verification –> Message Determination –> Maintain Message Types

Message Determination 1.PNG

Here the program that the system calls up to process the output, form routine and the form are updated.

SPRO –> Material Management –> Logistics — Invoice Verification –> Message Determination –> Maintain Conditions

Maintain Condition.PNG

SPRO –> Material Management –> Logistics – Invoice Verification –> Message Determination –> Assign Forms and Programs

   Assign Forms and Programs.PNG

If the message determination configuration(like message condition) is not maintained correctly, below error message is shown up, when you run MRRL transaction.

ERS settlement: No message was found for partner 200005/company code ZPRA

     Error Message.PNG

After updating the message determination settings correctly, you can post the documents.

       Test Run.PNG

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16 Comments

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    1. Mehmet Ozgur Unal

      helpful document , thanks…

      I want to add some details.

      *You can use ERS , only with account assignment is defined in PO.

      * To create invoices automatically, you can define Ers a batch job. Program RMMR1MRS…

      Also, you can benefit from invoicing plan functionality.

      INVOICING PLANS

      *Periodic invoicing plan : iv is generated monthly,yearly and so on.

      *Patial invoicing plan : iv is generated based on progress of work.

      Customization:

      Maintain Periodic Invoicing plan Types:

      Sap Img * MM * Purchasing * PO * Invoicing Plan * IV plan types * Maintain periodic iv plan types

      Enter: Starting date – End date – Horizon in tehe origin of general data seciton.

      In the invoice data : suggestion for dates section, select periodic invoice date to determine the next billing date.

      Maintain Partial Invoicing plan types

      Sap Img- MM-Purchasing-PO-Invoicing Plan-IV plan types

      In this step , you define the partial invoicing plan types by specifying the relevant control data.After data , you have to configure maintain date id.

      Process Step :

      *Create Po, document type FO (Framework order) is used for Po’s with invoice plans.Select the account assignment K. If you want to select the Gr indicator in Po,you must select the nonvaluated goods receipt indicator as well.

      Note: Invoicing plan functionality doesnt work with valuated goods receipt.

      Click on th Invoicing Plan button located on the invoice tab of the item details.System will propose invoice schedules from created customizing.

      *Execute MRIS (Invoicing Plan Settlement) ; enter company code,Plant,Vendor.You can check the invoice status on the invoicing plan tab of Po. Billing status C stands for completely processed.

      *Batch RMMR1MIS will create autamatically.

      M.Ozgur Unal

      (0) 
  1. Lakshmi Kumari Sama

    Hi Prashanth,

    Nice presentation and you have explained in a clear & simple manner even a beginner can understand easily 🙂

    Expecting more documents from your end and keep sharing.

    Thanks & Regards,

    Lakshmi S

    (0) 

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