Hi


Reversal of Invoice (Credit Memo) hit Price difference account in case of multiple Invoice booked against a Purchase order and logic, how system is calculating GR/IR clearing account at the time of Credit Memo.



When the account movements are determined, the following items are taken into account:

-Credit Memo Quantity

-Credit Memo Amount


Invoice Quantity Greater than Goods Receipt Quantity


Invoice Surplus and Remaining Credit Memo Quantity


Calculation for posting in FI document for

Excess Invoice Quantity = IR reversal Qty  * (Total GR Amount  – Total LIV Amount ) / (total GR Qty – total IR Qty )


Remaining Credit Memo Quantity = IR reversal Qty  * (Total GR Amount) / (Total GR Qty)



The sum of these values is posted to the GR/IR clearing account. The credit memo amount is posted to the vendor account.


Tables to be refered for calculation

Total GR Qty = EKBE-MENGE with VGABE = 1

Total GR Amount  = EKBE-DMBTR with VGABE = 1

Total LIV Amount = EKBE-AREWR with VGABE =2

Total LIV Qty = EKBE-MENGE with VGABE = 2

In case of Delivery cost refer EKBZ table.


Note: The system will not necessarily reverse the exact amounts, It depends on several factors: goods-receipt-based invoice verification, service based, any changes to the fields, etc.When you cancel an invoice, the system posts a credit memo for the data in the invoice. The postings are made in accordance with the creditmemo posting logic. This means that the postings in the invoice are not necessarily reversed. This is especially the case when an invoice is to be cancelled for a purchase order for which several invoices have already been posted. GR-Based IV does not play a role in case of delivery cost.


Invoice Quantity Smaller than Goods Receipt Quantity

If the invoice quantity is smaller than the goods receipt quantity, the following values are calculated for the credit memo quantity.

This value is posted to the GR/IR clearing account.

The credit memo amount is posted to the vendor account.


Note: If the credit memo amount is different to the posting to the GR/IR clearing account, the difference is posted to the stock account or a price difference account, depending on the price control defined for the material.



Example: Material with MAP

Purchase Order with 100 Pc @ $11.00/Pc. (PO Based Invoice Verification)

Goods Receipt 80 Pc.

Accounting Entries

Stock Dr. – $800

GR/IR Cr. – $800

(Off setting entry posted to GR/IR Clearing Account)

GR/IR to be cleared can be viewed in MB5S.

First Invoice

Invoice amount $720 for 60 Pc & New Price Per Pc. $12.

Vendor Cr.  –  $720

GR/IR Dr.  –  $600

Stock Dr.  –  $120 (If enough stock coverage) OR

Price Difference Dr. – $120

Here GR/IR Account is cleared for 60 Pc and amount $600. Remaining GR/IR to be cleared is $200.

Note: The invoice is different to the purchase order price. The difference between the purchase order value and the invoice value is posted to the stock account if there is sufficient stock coverage.

Second Invoice

Invoice Amount $548 for remaining 40 Pc. & New Price Per Pc. $13.70

Vendor Cr.  – $ 548

GR/IR Dr.  – $ 494

Stock Dr.  – $ 54 (If enough stock coverage) OR

Price Difference Dr.  – $54

Another Goods Receipt

Goods receipt Qty * Invoice Price

10 Pc. X $13.70 pc = $137.00


Off setting posted to GR/IR Clearing Account


Credit Memo


Calculation for GR/IR Clearing Account

Note: The total of the excess invoice quantity and the remaining credit memo quantity is posted to the GR/IR clearing account. The credit memo amount is posted to the vendor account. The credit memo amount is different to the posting to the GR/IR clearing account. The system posts the difference to the stock account if there is sufficient stock coverage.


Second example (GR Based Invoice Verification)


PO Qty = 100 Pc & $10/Pc


GRN = 50 Pc

Accounting Entries

Stock Dr. – $500

GR/IR Cr. – $500


First Invoice = 50 Pc

Accounting Entries

Vendor Cr.  – $500

GR/IR Dr. – $500


Second Invoice = 10 Pc with $11/Pc

Accounting Entries

Vendor Cr.  – $110

GR/IR Dr. – $110


Third Invoice = 10 Pc with $12/Pc

Accounting Entries

Vendor Cr.  – $120

GR/IR Dr. – $120

Credit Memo for Third Invoice Qty = 10 Pc

Accounting Entries

Vendor Cr.  – $120

GR/IR Dr. – $115

Price Difference Account Dr. – $5.0 (System will hit PRD account even if there is sufficient stock coverage)




Service PO


Service PO for 10 Qty with $100 Net Price per Qty


Service Entry Sheet for 8 Qty = $800

Accounting entries in GRN

Service Account Dr. – $800

GR/IR Clearing account Cr. – $800

Invoice for amount $500

Accounting entries

Vendor Cr. – $500

GR/IR Clearing account Dr. – $800

Service Account Cr. – $300

Credit Memo

Accounting entries

Vendor Dr. – $500

GR/IR Clearing account Cr. – $500

Service Entry sheet reversed with Qty 8 = $800

Accounting entries in GRN

Service Account Cr. – $500

GR/IR Clearing account Dr. – $500

Note: When you see Purchase order history, it will show you wrong amount for Goods receipt.

SAP KBAs

1609927 – MR8M / Credit Memo postings

 

46564 – Cancelling/reversing an invoice/credit memo: Posting logic

127832Invoice verifcation: Price differnces w/ credt memo

323607Invoice reversal for services

SAP HELP LIBRARY


Postings for Credit Memos – Logistics Invoice Verification (MM-IV-LIV) – SAP Library


 

Thankx to all

Kaushal Sharma

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10 Comments

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  1. sap earth

    Hi Kaushal,

    So for the last scenario of service PO where the wrong amount for goods receipt, what shall we do about it? we have a similar case as well.

    example,

    1 – SES posted for 100,000 USD

    2 – invoice posted for 100,000 USD

    3 – credit memo posted for 100,000 USD

    4 – invoice posted again for 90,000 USD

    5 – credit memo posted for 90,000 USD

    6 – the SES was reversed at 90,000 USD instead of the correct 100,000 USD and we have a 10,000 USD showing.

    what we can do to remove this 10,000 USD, and post the correct SES value(90,000) again?

    is there anyway to remove the 10,000 USD? what’s the alternatives to resolve for such scenarios?

    thanks alot.

    (0) 
    1. Kaushal Sharma Post author

      Hi SAP Earth,

      If you will see the accounting impact in FI transaction, there is nothing wrong with the same but when you will see accounting impact in MM trasaction it will show you wrong.

      10,000 USD will remain there in PO history. You can cancel SES and post the correct invoice amount.

      (0) 
      1. sap earth

        hi Kaushal,

        many thanks for the fast response.

        yes the 10,000 is still showing in PO GR history after i cancelled the initial SES.

        now if i post back the SES with 90,000 USD, the total GR price will be 100,000 USD incl the 10,000 USD surplus earlier.

        it will be like below in PO history.

        GR

        90,000 USD

        10,000 USD

        total 100,000 USD

        invoice

        90,000 USD

        SES

        90,000 USD

        will there be any audit issue on this on the extra 10,000 USD hanging around?

        is there no way to remove this 10,000 USD in the PO history-GR amount?

        thanks.

        (0) 
        1. Kaushal Sharma Post author

          Hi SAP Earth,

          There is no audit issue on the extra 10,000 USD hanging around, as your account is financially settled. You can check GL balances. There is no way to remove 10,000 USD from PO history.

          (0) 

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