MIRO & MIGO

[Former Member]

Hi All.

Can anyone please explain wt is MIRO &MIGO.

What difference between these two.

Thanks in advance

Deepak

[Former Member · Accepted solution]

This is the entire process of logistics. MIGO AND MIRO would be steps 5 and step 6.

Regards

Step 1 Generating purchase requisition( PP-MM involved)

Step 2 Making inquiries (MM)

Step 3 Raising purchase order (MM)

Step 4 Release of purchase order ( MM)

Step 5 Goods received from vendor ( MM and FI )

Entry will be

Raw Material Inventory a/c Dr.

GR/IR clearing a/c Cr.

Step 6 Invoice verification and quality assurance (FI and MM)

Entry will be

GR/IR clearing a/c Dr

Vendor a/c Cr

Step 7 Goods issued for consumption(MM, FI and PP)

Entry will be

Raw material consumption a/c Dr

Raw material inventory account Cr

Step 8 Production receipt( FI, MM & PP)

Entry will be

Finished goods inventory a/c Dr

Change in stock Cr

Step 9 Finished goods delivered to customer(MM, SD & FI)

Entry will be

Change in stock Dr

Finished goods inventory a/c Cr

Step 10 Raising invoice on customers( SD & FI)

Customers a/c Dr

Sales a/c Cr

Step 11 Receipt of payment from customers( Same as SD-FI integration)

[Former Member · Accepted solution]

Hi Jose,

thanks a lot for ur reply & so nice explanation.

Please clear my doubt here that

1) whether these both MIRO & MIGO relates to FI person.

2) In MIRO & MIGO what is the exact role of FI person

Thanks a lot again

[Former Member · Accepted solution]

DEEPAK

That would depend in the company organization.

In some cases the financial clerck would be responsible for loading the invoice into the system(that is MIRO), in others the FI person woud only check the amounts. The same in case of MIGO.

I think the most imortant relation between FI person and this transactions are the accounts that MIGO and MIRO use, cause Fi person have to validate the amounts.

Regards

[Former Member · Accepted solution]

Hi Jose,

but i hope so that in every case MIGO will be done by FI person.

Please correct me if i m wrong.

[Former Member · Accepted solution]

Hi Deepark,

MIGO must be assigned to MM person and MIRO to the FI person, it's an internal control.

so you must have different roles for each of these transactions.

Regards

[Former Member · Accepted solution]

Hi Jose:

You have given good explaination of MIGO & MIRO.

Could you please explain in step 8 and Step 9 what type of account (Asset/Liablity) account is "Change in Stock". I don't understand why that account will be Debited when you deliver the goods to customer?

Thanks

Bimal

[Former Member · Accepted solution]

Hi

I need a help from u. how to do bulk invoice verification and auto posting .

get points thanks

Regards

Geeta