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ERS settlement

raghavendra_praveen
Active Contributor
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130

I have ticked ERS for a vendor in vendor master. If i tick it there, will it(ERS tick under invoice tab) be appearing in the PO which is raised on that vendor.

The invoice for that PO is different from MIRO?.

Please explain the process of ERS settlement.

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Answers (1)

Answers (1)

Former Member
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Hi,

If you tick the ERS flag in the vendor master and have not set it differently in the info record, then yes, it will be carried on to the PO.

ERS is self billing and so it does not change the invoice because there will not be one to enter.

You run the ERS settlement program (in the Logistics Invoice verification menu) and this looks for POs that have been received (with the ERS flag set on).

The system then basically multiplies the GR qty times the PO price and automatically creates an invoice (just the same as if it had been manually keyed by MIRO). this invoice automatically passes the three way matching check (because the system entered the details that it would check against if the invoice was keyed manually into MIRO).

The invoice is therefore cleared for payment and paid in the next relevant payment run.

Steve B

raghavendra_praveen
Active Contributor
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Hi,

It is clear.

But this ERS settlement (ERS invoice) has any thing to do with the plant and the company code mentioned in the purchase order?

And do we need to tick the GR based IV and Invoice receipt and untick the Final invoice under invoice tab (item details).

Former Member
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Hi

These are the <u>prerequisites for ERS</u>

Evaluated receipt settlement must be flagged in the purchase order item.

The vendor must be flagged as being subject to ERS in the vendor master record.

The goods receipt must refer to a purchase order.

Goods-receipt-based Invoice Verification must be defined for the purchase order item.

A tax code must have been maintained in the purchase order item.

The order price of the materials may not be an estimated price.

Message determination For ERS has to be dine

<u>ERS has the following advantages</u>

Purchasing transactions are closed more quickly.

Communication errors are avoided.

There are no price and quantity variances in Invoice Verification

Thanks & Regards,

Sridhar.G

Former Member
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Hi,

The bers settlement uses the Company code from the purchase order to determine the correct accounts etc.

The GR based IV flag should only be set if the system demands it. (which it will do in this situation)

The final invoice flag will be blank anyway, leave it this way (If you set it this means that you don't want any more invoices to be posted for this item)

Steve B