EVALUATED RECEIPT SETTLEMENT (ERS):

It is an agreement between the vendor and the company. Instead of creating invoices for these vendors who supply on a regular basis, the company settles their account once a month. The system recognizes the ERS vendor through the vendor master record – purchase org data where the ERS related fields are checked.

Also make sure these three fields under the invoice tab of the item detail are active.

Invoice ReceiptERSGR-Bsd IV This means the system identifies the PO based on the GR based invoice verification to create invoices automatically.

This works on two way match. Po and GR against the usual procedure of three way match which is PO, GR, IR.

Steps involved in ERS Procedure:

Create a Purchase order ME21N. (It will be a straight forward PO).Release the Purchase Order. ME29NRecord the Goods receipt MIGO (Material Document is posted)(For normal PO’s, we have to raise an invoice using MIRO and do the payment. For ERS related PO’s, invoice is created automatically by the system on a periodic basis by running the settlement using MRRL transaction.Once you run the MRRL transaction, the system settles all the POS and creates invoices for those POS.Once the FI documents are posted, these POs will not appear in the next MRRL run.

Please find the screen shots for all the above steps:

ME21N Creation of a purchase order:

ME29N Release Purchase Order:

MIGO Record Goods Receipt:

Check the box ITEM OK. And save.

Material Document 5000000230 is posted. Go to Mb03 to check this material document.

Settle ERS Pos, Go to MRRL

First run it on the test mode without unchecking the test run Check box.

As you can see, the FI doc is not updated. Once you uncheck the test run, the system will create the FI document.

Let us run it real.

Now you can see that the FI document is created.

Go to FB03 to check the FI document.

After this step, you can do the payment to the vendor using F110.

CONSIGNEMNT :

Creation of Purchase Order ME21N:

Release the Purchase Order ME29N:

TO Record Goods Receipt: MIGO

Please note that the storage location is taken as the place where the stock is stored.Although SMO1 belongs to Client, this stock will not be counted into Client’s inventory.When we issue goods for consumption we will use this as the from location and the DCO1 where the actual consumption happens as the receiving Storage Location.

Material document is posted.

There are two ways that a consignment works. We can either directly receive materials from vendor stock for consumption or we can bring the stock into our inventory and then consume.

We use MB1A when we directly consume from vendor’s stock account. For this we use movement type 201 K.

The present example is using the scenario when the stock is transferred into our stock for consumption later. (Not so common)

For this go to MB1B to record the goods receipt.

Here for consignment we have to use movement type 411 and Special stock type K to record the goods receipt.

Press enter after entering the movement type, stock type, plant and storage Location. Please note that storage location should be the place from where we are picking the stock. We could take from vendor’s storage location or we can keep it in our storage and not count it as our inventory. In that case we can put the temporary storage location where the stock is stored. Here it is SM01.(Storage Location of the client)The following screen appears:

Feed in the vendor number, material code, quantity and unit and the receiving storage location which is Supplier Managed Storage Location.

Now the next step is to settle the consignment pos.

Go to MRKO transaction.

First run this transaction with Display option checked.

Now do the actual run by unchecking the display option and selecting the Settle option,

Go to Fbo3 to check the FI document.

Vendor Set up for ERS and Consignment

Xk03, Purchasing data screen

Control Data, See that the these three fileds are checked.

GR Based Inv VerificationAutoEvalGRSetment retAcknowledgement required