scm515 study notes

Unit 1: Basic Invoice Verification Procedure

Lesson 1: Introduction to Invoice Verification

SCM515-Invoice Verification

 

 

When goods are received, the system debits the stock account and posts the offsetting entry to the GR/IR clearing account.

l  In the case of material with a moving average price, the stock account is posted with the value of the net order price multiplied by the quantity of goods received.

l  In the case of material with a standard price, the stock account is posted with the value of the standard price multiplied by the quantity of goods received. The system posts the difference to an account for Expenses or Revenue from Price Differences.

When the invoice is posted, the GR/IR clearing account is cleared and the vendor account is credited.

The two types of price control differ in the way they handle price differences that may arise from goods receipts or invoice receipts:

l  When a material is valuated at a moving average price, the price changes in line with the delivered costs. If the purchase order price or the invoice price varies from the price in the material master record, the difference is posted to the stock account if there is stock coverage for the invoice quantity. As a result, the total value and therefore the valuation price of the material change.

l  When a material is valuated at a standard price, differences between the purchase order price or invoice price and the price in the material master record are posted to a price difference account. As a result, the price in the material master record remains constant.

 

Lesson 2: Basic Invoice Verification Procedure

 

Transaction_code	Description	Memos
MIRO	Enter invoice
MIR7	Park invoice
MR8M	Cancel invoice
MIR6	Invoice overview
MRRL	Evaluated receipt settlement
MRNB	Revaluation
MIRS	Invoicing Plan
RMBABG00	Invoice verification in the background

 

 

Lesson 3: Document Parking

Lesson 4: Taxes, Cash Discounts, and Foreign Currency

There are two ways of posting the cash discount amount: gross posting and net posting.

l  Gross: If you post the gross amount of an invoice, the system ignores the cash discount amount when you enter the invoice; it posts the cash discount amount to a Cash Discount account at the time of payment. Therefore, the cash discount amount is not credited to the stock or cost account.

l  Net: If you post the net amount of an invoice, the system posts the cash discount amount from a cash discount clearing account to the stock or cost account. This means the system only posts the amount reduced by the cash discount amount to the stock account/costs account. The cash discount clearing account is cleared at the time of payment.

Net Posting: The offsetting posting to the cash discount clearing account is dependent on the price control of the material:

1.        If the material is managed with a standard price, the cash discount is credited to the price difference account.

2.        If the material is managed with a moving average price, the cash discount is credited to the stock account. I f there is no stock coverage, then only a part, for which the stock coverage exists, is posted to the stock account. It posts the remainder to the price difference account.

When the payment is made, the input tax posted in the invoice is corrected.

Foreign Currency Handling

       If you enter an invoice in a foreign currency, the following settings must have been made in the system:

1.        You must have defined the currency you are using to enter the invoice.

2.        You must have configured an exchange rate for the given currency and the local currency in customizing. You can define different exchange rates for different time periods.

For a purchase order in a foreign currency, the buyer can decide whether the rate is fixed or not. The buyer set the relevant indicator in the purchase order header, on the Delivery/Invoice tab pages.

1.        If this rate is fixed, the system uses the exchange rate from the purchase order to convert the foreign currency to the local currency at goods receipt and at invoice receipt.

2.        If this rate is not fixed, the system uses the current exchange rate to convert the foreign currency to the local currency at goods receipt. In Invoice Verification, the system also suggests the current exchange rate as the exchange factor, but you can c