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
ME23N — Display Purchase Order
ERS check box is activated by default, if you flag a vendor as ERS vendor.
MRRL is the transaction code to carry out ERS functionality.
In TEST mode
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
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
Click on Document Type in Invoice Verification and in the subsequent screen double click on MRRL transaction code.
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
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
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
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
SPRO –> Material Management –> Logistics – Invoice Verification –> Message Determination –> Assign Forms and Programs
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
After updating the message determination settings correctly, you can post the documents.