Logistic Invoice Verification

Every organization procures some goods and services to complete the business processes. Once goods
are procured from vendor, through GR we place those goods in company premises after that vendor
sends invoice (The amount to be paid along with the details of the material is provided by the vendor
in the form of a document) to pay for procured goods. Before paying to the vendor we need to check
the invoice for correct payment, this process is known as Logistic Invoice Verification.
Before going in depth let us know some basic term you come across during LIV.

1. Posting of Invoice
 It is done after the good receipt (Receiving Goods from vendor)
 The invoice received from the vendor is verified for cost, quality and quantity by the
ordering party and then the invoice is posted against purchase order.
LogisticsMaterials ManagementLogistic Invoice Verification Document
EntryEnter Invoice.
T Code: MIRO
Fill all the details as shown in
figure like; PO number, total
amount, Invoice date, tax if
any to calculate. Then click
MIRO on save. Invoice will be
posted for good receipt
received.

2. Blocked Invoice
 Sometimes vendor payment may not be done as per invoice received it happens due to
few reason like system expect few of the things must be entered in invoice, sometimes
there may be variation in PO value and Invoice value etc. this leads to blocking of
invoice.
 To avoid this blocking some kind of tolerances must be setup.
LogisticsMaterials ManagementLogistic Invoice verificationFurther
ProcessingRelease Blocked Invoice.
T code: MRBR

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 Provide necessary details such
as company code, invoice
document number, vendor,
posting date, and purchasing
MRBR group. Then click the execute
button. The blocked invoice
will be released.

3. Evaluated Receipt Settlement (ERS)

 Good receipt can be settled automatically.
 Invoice will be posted automatically from the information present in the purchase order and the
goods receipt
 It reduces human efforts as there is no need to verify the invoice.
 Amount and quantity variances in invoice can be avoided with the help of ERS.
 There are few settings to be done in Vendor master for ERS
Go to XK02 (Change mode of vendor master).
Select Control data tab.
Check the AutoEvalGRSetmt Del. and AutoEvalGRSetmt Ret box.
Click on Save. Now the particular vendor is enabled for ERS.

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LogisticsMaterials ManagementLogistic Invoice verificationAutomatic Settlement
Evaluated Receipt Settlement (ERS)
T Code: MRRL

These are one should understand

MRRL
before going to LIV.

Invoice Verification
There are four types of invoice transactions
1. Invoice
2. Credit Memo
3. Subsequent Debit Memo
4. Subsequent Credit Memo

Before learning all above four topics we will set some basic configuration of Logistic invoice
verification.
SPROIMGMaterial Management logistic invoice verificationIncoming InvoiceNumber
AssignmentMaintain Number Assignments for Accounting Document
Tcode: OMR4
You will get the tab as shown in figure

 Click on document type

 You will see next window in which number document type as per posting are created already
like AA, CP and RE etc.
 Let’s select RE Gross Inv. Receipt and click on Details.
 You will be on next tab as shown in figure. Here you can observe assigned number range is
51 and document type is RE. You can observe there which account types are allowed for
posting.
 Also if you click on net document type then whatever may be discounts with vendor that will
be displayed on invoice only and no need will be there to go to payment page for display.

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 Select RE and
Go to Details

 Click on Number Range

Information.
 put company code and click on
intervals

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  You can observe 51 Number
range is created for year 2022.
 If current year in invoicing
document number range is not allowing
then you cannot post any invoicing
document.
 If your current year is not
available in number range then, you can
select number range go to edit and click
on insert year.
 You can put new number range
for New Year. And save

 Now go back to first tab

and click on Document types in
Invoice verification.
 You will observe different
entries select MIRO and click
on Details tab.

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  You Can Check
Document Type RE is
Assigned to this. Likewise
you can check for other
transactions also.

Come Back to IMG and go to next step

SPROIMGMaterial Management logistic invoice verificationIncoming InvoiceNumber

AssignmentMaintain Number Assignments for Logistic Document-Transaction Assign Number
Range

 Here RD is for Invoicing and RS is for Cancellation for Invoice

 No need of Changing

SPROIMGMaterial Management logistic invoice verificationIncoming InvoiceNumber

AssignmentMaintain Number Assignments for Logistic Document-Maintain Number Range
intervals for Invoicing Documents.

 Click on Intervals
 And you will observe the same number range is created for document as you observed in ealier
steps.
 If number range is not available in current year then you need to add it by the same procedure
as discussed above.
Now come back
SPROIMGMaterial Management logistic invoice verificationIncoming InvoiceMaintain
Default Values for Tax code

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 You will observe
same tax code in
MIRO Tab but it
will be in editable
form if you need
you can change it.

Come back our next configuration is for price variance.

SPROIMGMaterial Management logistic invoice verificationIncoming InvoiceDefine
Mail to Purchasing when price variances occur.
Here what happens many a times there may be variances in Price mentioned in PO and Invoice receipt,
this configuration will shoot automatic mail to purchase department that there are variances in price of
PO and IR.

Though it is ticked for auto mail you need to create one condition record for this.

 Tcode NACE
 You can maintain all output controls over here.
 Select MR and click on condition record.
 Select MLPP and go to condition record
 Put company Code and execute
 ME means buyer,7 means simple mail and 4
means send immediately you can check it with
dropdown
 Select the row and go to communication

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Next configuration is for Vendor Specific Tolerances.
SPROIMGMaterial Management logistic invoice verificationIncoming Invoiceconfigure
vendor specific tolerances.

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  You Can Check Currency and
Negative difference and positive difference
as highlighted.
 You can Enter upper positive
difference
 Also few fields like negative
allowance lower limit and small difference
can be checked.
 You can create new entry also
 It means this will allow us 10%
upside and 10% downside during Invoice

Next Configuration is for duplicate invoice check

SPROIMGMaterial Management logistic invoice verificationIncoming InvoiceSet Check
for Duplicate invoices
Here you can check for duplicate invoice by ticking options available. You can click on all three but
better option is to select anyone like if you click for check reference then system will check for
already created invoice and it will give error or warning to create duplicate invoice.
Similarly if you click on check invoice date it will check for invoice date and vendor and stops
duplicate invoice.

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 1. INVOICE

Fill All Details

1. Invoice Date:Date on
which Invoice is created
2. Amount: Net amount in
PO
3. Calculate tax: It will
calculate tax on net
amount
4. Purchase
order/Schedulling
agreement

After filling all basic data required check for payment TAB where you can obser baseline date which
you maintains in Vendor master data.You can select appropriate payment method

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Then go to details tab where you will observe configured doc type, currency details

TAX Tab

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You can see all contacts in contact tab
And you can write any specific note if you need it.
After this click on simulate and post it
Go to invoice document and click on display you will see all details of invoice created

You can find accounting document by clicking on follow on documents. Double click on accounting
document
You can observe transaction keys, respective G/L
accounts as shown in figure

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So we have created invoice document 1000000042 and accounting document 5100000085
Table for Invoice document HEADER is BKPF and that for ITEM is BSEG
Table for Accounting document HEADER is RBKP and that for ITEM is RSEG

You can go for Invoice Receipt without GR , now how to create it?
First create PO with ME21N
Go to invoice tab in ITEM and untick GR-Bsd IV
PO 4500022571 is created

Now go for Invoice Verification

Tcode: MIRO
Fill all basic data and check for message

Simulate and Post the document. Invoice document 1000000043 is created.

Now check in payment tab you will observe payment is block
The reason is invoice
verification. Now go
for Invoice
Verification
T Code: MIGO
GR is created
5000001458
Now To release blocked Invoice as discussed above

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LogisticsMaterials ManagementLogistic Invoice verificationFurther ProcessingRelease
Blocked Invoice.
T code: MRBR
Select invoice row and click on release

After this you will see release status of Invoice

Now enter MIRO and go to display and check payment tab invoice document will be free for payment.

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 2. Credit Memo
 If the quantity and price in invoice is excess then balancing that excess quantity is known as
credit memo

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