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Document on Evaluated Receipt Settlement

Rakesh Singh Chauhan is an employee of Infosys Limited. He has total experience of 11 years in the area of SAP-SD, Internet Sales, SAP-VMS, fit-gap assessment etc. He is PMP certified and at present shouldering the responsibility of Project Manager for an Automotive Giant. Dinakar Hindupur is now an employee of Infosys Limited. He has total 8.3 years of experience out of which near about 6.3 years experience in the area of SAP consulting in procure to pay and order to cash process. As a part of Domain experience he has worked in procurement department in a manufacturing firm for 2 years.

Table of Contents

Definition & Purpose: 3

Advantages of ERS & Prerequisites: 4

Step by Step Process flow in SAP: 5

Related Content 12

Disclaimer and Liability Notice: 13

 

Definition & Purpose:

In Evaluated Receipt Settlement (ERS), you have an agreement with the vendor that they do not create an invoice for an ordering transaction and instead, the system posts the invoice document automatically on the basis of the data in the purchase order and goods receipts.

Purpose of ERS:

ERS to be implemented when you and your vendor have a clear agreement on the conditions used and you regularly update the purchase orders in the system.

The system determines the invoice amount from the prices entered in the order, the terms of payment, the tax information and the delivery quantity entered in the goods receipt.

You can settle goods receipts directly without receiving an invoice from the vendor. The system can generate the corresponding invoices and post them and a vendor invoice is no longer required. You can automatically send the settlement documents created to the vendors.

Evaluated Receipt Settlement (ERS) is particularly suitable for creating settlement documents at regular intervals.

 

Advantages of ERS & Prerequisites:

Advantages:

·         Purchasing transactions are closed more quickly.

·         Communication errors are avoided.

·         There are no price and quantity variances in Invoice Verification

Prerequisites:

·         The vendor must be flagged as being subject to ERS in the vendor master record

·         Evaluated receipt settlement must be flagged in the purchase order item.

·         The goods receipt must refer to a purchase order.

·         Goods-receipt-based Invoice Verification must be defined for the purchase order item.

·         A tax code must have been maintained in the purchase order item.

·         The order price of the materials may not be an estimated price.

                      

Step by Step Process flow in SAP:

1)    Go to transaction  XK01 (Create vendor): While creating vendor for ERS its mandatory to check the boxes “AutoEvalGRStmtDel” and “AutoEvalGRSetmtRet” in control data available in the purchasing data tab of vendor master.

Purchasing data in XK01

2)    Go to ME21N transaction and create the PO with above created vendor 15422405.

If you flag a vendor as being subject to ERS, the system sets the ERS indicator as a default in each item when you create a purchase order for the vendor. As shown, in the invoice tab of PO the ERS and GR-Bsd IV checks are defaulted from vendor master. You can prevent this happening for certain vendors by flagging the info record for the material and the vendor as not being subject to ERS.

It’s mandatory to enter the tax code too.

          

3)    Go to MIGO transaction and make the GR for the PO

The material document 5000276730 is posted for the PO.

4)    Next step is to carry out invoice posting through ERS. Go to transaction MRRL

The following criteria to narrow down selection of the transactions to be settled:

      • Company code
      • Plant
      • Goods receipt posting date
      • Goods receipt document
      • Fiscal year of the goods receipt
      • Vendor
      • Purchase order and order item

Enter the vendor number in the field vendor as shown.

When you click on test mode, system can issue a list of goods receipts that can be settled and goods receipts that cannot be settled.

To Carry out posting remove the tick from check box “test” and execute the transaction

After execution the invoice document number and the FI document number are generated.

The invoice document 5105650512 is posted.

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