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Logistics Invoice Verification:

Logistics Invoice Verification is a part of Materials Management (MM). It is situated at the end of the logistics supply chain that includes Purchasing, Inventory Management, and Invoice Verification.

  • It is in Logistics Invoice Verification that incoming invoices are verified in terms of their content, prices and arithmetic. When the invoice is posted, the invoice data is saved in the system.
  •  The system updates the data saved in the invoice documents in Materials Management and Financial Accounting.

In Materials Management, Logistics Invoice Verification has the following features:

  • It completes the material procurement process, which started with the purchase requisition and resulted in a goods receipt.
  • It allows invoices that do not originate in materials procurement (such as services, expenses, course costs) to be processed.
  • It allows credit memos to be processed, either as invoice reversals or return deliveries.


  • Invoice Verification Online:

You receive an invoice and enter the information contained in it in the system, comparing the data (such as quantities and values) suggested by the system with that in the invoice and making any necessary corrections. You then post the invoice. In the SAP System, a distinction is made between the following types of invoices:

  • Invoices with purchase order reference:

All the items in a purchase order can be settled. With purchase-order-based Invoice Verification, all the items of a purchase order can be settled together, regardless of whether an item has been received in several partial deliveries.


The Accounting Entities are:

KBS - (CR)

WRX - (DR)

  • Invoices with goods receipt reference:

Each goods receipt is settled separately.

  • Invoices without purchase order reference:

Invoices can be posted directly to G/L accounts or material accounts.

A subsequent debit/Credit exists when an additional invoice or credit memo is received for a transaction that has been already invoiced.

When you post an invoice or a credit memo as a subsequent debit/credit, you should note the following:

  • The system records every subsequent debit/credit in the purchase order history.
  • By posting a subsequent debit/credit, the system updates the ordering transaction on a value basis but not on a quantity basis. The quantity invoiced therefore does not change, but the total value invoiced does.
  • The maximum quantity you can subsequently debit, or credit is the quantity that has already been invoiced. It is not possible to post a subsequent debit before an invoice. The system does not check the quantity delivered. A subsequent debit/credit cannot be blocked due to quantity variance.

If you are entering invoices or credit memos containing both standard items and subsequent debits/credits, you have the following options:

  • If the invoice consists mainly of subsequent debit/credit items, you choose the transaction Subsequent debit and deselect the field Subsequent debit/credit for the items that are not subsequent debits.
  • If the invoice consists mainly of standard items, you choose the transaction Invoice and select the field Subsequent debit/credit for the items that are subsequently debited.
  • If you want the system to carry out a price check for a subsequent debit, it compares the value invoiced to date plus the value of the subsequent debit with the expected value based on the purchase order. The system takes tolerance limits into account when carrying out the price check. If a price variance exceeds one of the upper tolerance limits, the subsequent debit is blocked for payment.

Credit Memo:

A credit memo is the complete reversal of invoice. Credit memo means charging money from vendor.

  • When we reverse/cancel the invoice then the system will post a credit memo.

For Example, you have received the goods and identified all the goods or some of the goods are damaged, and you are returning the goods back to the vendor. We will create a credit memo for the goods amount equal to the return goods.

Here I returned 2 materials to the Vendor and ask to pay money to those materials.


The Accounting Entities are

KBS - (DR)

WRX - (CR)

Subsequent Credit:

When we want to collect or receive an extra amount from the vendor after the invoice is posted then we need to raise subsequent credit memo.

  • For example, if any material is damaged or vendor charges extra amount as per agreement then we can raise the subsequent memo.


The Accounting Entities are:

KBS - (DR)

PRD - (CR)

Sub sequent Debit:

If we can pay any extra amount to the vendor, the vendor can raise the sub sequent debit memo.

  • For example, increase of the material after agreement or increase of tax while transportation the vendor raise the subsequent debit memo to the customer to pay the extra amount.


The Accounting Entities are:

KBS - (CR)

PRD - (DR)

  • The system records every subsequent debit/credit in the purchase order history tab.


Planned Cost:

The cost which is planned while creating PO itself is known as planned cost.

Create PO:

While creating the PO In the Condition Tab we can maintain the Planned Cost by selecting the condition type.

Select the condition type in Line Item Click on condition details icon maintain to Vendor.


Next, we can do Goods w.r.t to PO.

The Accounting Entities are:

BSX – (DB)

WRX – (CR)

FR1 – (CR)



The Accounting Entities for MIRO

KBS - (CR)

WRX - (DR)


The Accounting Entities for Planned cost are:

KBS - (CR)

FR1 - (DR)


Unplanned Cost:

The cost which are not planned while creating PO itself is known as unplanned cost.

We can maintain the Unplanned cost while doing the Invoice Verification.

In the Details Tab we can maintain the unplanned delivery cost and tax code.



If we cannot maintain these setting while in invoice Verification

The Accounting Entities are

KBS, WRX & BSX will trigger.

If we Maintain the setting in the Place of BSX the UPF will trigger.


The Accounting Entities are:

KBS - (CR)

WRX - (DR)

UPF - (DR)

 Transaction Codes in Logistics Invoice Verification (MM-IV-LIV)



Document Entry


Enter Invoice


Park Invoice


Enter Invoices for Invoice Verification in the Background

Further Processing


Display Invoice Document


Cancel Invoice Document


Release Blocked Invoices


Invoice Overview


Output Messages

Automatic Settlement


Evaluated Receipt Settlement (ERS)


Consignment and Pipeline Settlement


Invoicing Plan Settlement



GR/IR Account Maintenance


Maintain GR/IR Clearing Account


Display/Cancel Account Maintenance Document



Create Archive


Delete Documents


Display Archived Document


Manage Archive

Evaluated Receipt Settlement

ERS — Evaluated Receipt Settlement is the process of settling goods receipt automatically. The Vendor Invoices are posted automatically (without actually receiving from the vendor) in the system based on the information in the purchase order and goods receipt. The settlement documents are sent automatically to the vendor in print, email or fax form.

Before implementing ERS, there must be an agreement with the vendor about ERS process and applicable conditions.

Advantages of ERS:

  • Purchase Orders can be closed quickly.
  • No price and quantity variances in Invoice Verification.
  • No need to receive invoice from vendor.
  • Communication errors can be avoided.

The following are the pre-requisites for implementing ERS:

  • In the vendor master data, the indicators for evaluated receipt settlement must be activated.
  • Confirmation is expected for the purchase order.
  • GR – IR Indicators and ERS Indicators should be activated in the PO
  • Tax code must be maintained in the PO item

Important Configuration Steps for ERS:

Maintain Number Ranges for Accounting Documents:

SPRO –> Material Management –> Logistics Invoice Verification –> Incoming Invoice –> Number Assignment –> Maintain Number Assignment for Accounting Documents

Transaction Code — OMR4


Click on document type, the initial screen appears


Select RE Document type

Click on the number ranges for document type in FI



Assign the number range to the document type RE


Click on Document Type in Invoice Verification and in the subsequent screen double click on MRRL transaction code.



Maintain Number Ranges for Logistics Documents:

SPRO –> Material Management –> Logistics Invoice Verification –> Incoming Invoice –> Number Assignment –> Maintain Number Assignment for Logistics Documents –> Maintain Number Range Interval for Invoice Documents

Transaction Code — OMRJ


Create a number range and assign it to transaction RD and RS in the below path:

SPRO –> Material Management –> Logistics Invoice Verification –> Incoming Invoice –> Number Assignment –> Maintain Number Assignment for Logistics Documents –> Transaction – Assign Number Range


Once the Invoice is posted, the settlement documents are sent to vendor automatically in print, email or fax form. The below mentioned Message Determination configuration is required for this action.

SPRO –> Material Management –> Logistics – Invoice Verification –> Message Determination –> Maintain Message Types


Here the program that the system calls up to process the output, form routine and the form are updated.

SPRO –> Material Management –> Logistics — Invoice Verification –> Message Determination –> Maintain Conditions


SPRO –> Material Management –> Logistics – Invoice Verification –> Message Determination –> Assign Forms and Programs


Here I create a vendor with number 200004 by activating the ERS related tabs.


Here I create a Po with number 409 for ERS. The ERS tab automatically selected because we activated while in creating vendor.


Next, we can do Good Receipt with respect to Purchase order


Now we can Evaluate Settlement through MRRL the initial screen may appear like this





The Accounting Entities are:

KBS - (CR)

sssWRX - (DR)

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