Performing Further Automatic Settlements

In supplier consignment, your goods are first delivered by the supplier free of charge. Although the material is in your warehouse, it remains the property of the supplier. The delivery will not be invoiced.

Only after the material has been withdrawn from the supplier consignment stock, the supplier requires payment. You do not expect an invoice from the supplier for the goods withdrawal from consignment stock. Instead, you settle the posted withdrawals yourself according to an agreed period and you send the supplier a notification.

This settlement can be performed periodically in the background.

In contrast to the ERS, no reference is created to the PO of the consignment material when you settle withdrawals from the consignment stock. Instead, the withdrawals from the consignment stock are the basis of the settlement.

You need to fulfill the following prerequisites for the special procurement process of the supplier consignment:

• An account must be specified for the transaction KON (Consignment payables) in Customizing for automatic account determination:

  IMG → Materials Management → Valuation and Account Assignment → Account Determination → Account Determination Without Wizard → Configure Automatic Postings (OMWB)

• The necessary settings for determining a message must exist in Customizing:

  IMG → Materials Management → Logistics Invoice Verification → Message Determination

• There must be a purchasing info record of the info category Consignment for the supplier and material of the consignment process. The price of the consignment material and the tax indicator for the settlement must be specified in this info record.

  (The consignment info record must be created for the standard purchasing organization of the plant. The assignment of the standard purchasing organization of the plant can be found in Customizing under Enterprise Structure → Assignment → Materials Management → Assign standard purchasing organization to plant).

When the postings are made to the liabilities account, the system automatically generates the assignment number from the material document number, as is the case during the settlement. This means that the open items in Financial Accounting (FI) can be balanced.

To settle consignment withdrawals (or pipeline withdrawals), choose Logistics → Materials Management → Logistics Invoice Verification → Automatic Settlement → Consignment and Pipeline Settlement (MRKO), or choose Create Consignment and Pipeline Settlement app in the Fiori launchpad.

Specify which process you want to display or settle in the selection screen. The following options are available as selection criteria:

• Company code
• Supplier
• Plant
• Material
• Document date
• Posting date
• Material document (of the goods withdrawals)
• Withdrawals that are to be taken into account: consignments and/or pipeline withdrawals

You can decide whether to display or settle withdrawals that have not yet been settled. This transaction also allows you to select processes that have already been settled. If you do this, you can select a process according to the document number of the settlement document.

The types of invoicing plans are as follows:

• Periodic invoicing plan:

  For the periodic invoicing plan, the total amount of the PO item is calculated for each due date. This plan can be used for regularly recurring procurement transactions and can be compared to a recurring entry in accounting (for example, rent, leasing, or subscription).

• Partial invoicing plan:

  For the partial invoicing plan, the total value of the PO item is broken down and spread over the individual dates of the invoicing plan. This plan can be used for invoicing high-cost materials or projects involving the procurement of external services that are subject to stage payments (for example, plant construction projects or the invoicing of individual stages of a building project following completion in each case).

  You can also flag due dates in a partial invoicing plan as dates for advance payments. The amounts corresponding to these dates are then not taken into account in the sum total of the invoice items because advance payments are set off against later invoices.

Before you can work with an invoicing plan, the following conditions must be fulfilled:

• The necessary settings for invoicing plans must exist in Customizing.

  IMG → Materials Management → Purchasing → Purchase Order → Invoicing Plan

• The necessary settings for message determination must exist in Customizing.

  IMG → Materials Management → Logistics Invoice Verification → Message Determination

• The indicator for the evaluated receipt settlement (indicator Eval. Receipt Sett..) must be set in the master record of the supplier.

• The invoicing plan item in the PO must have an account assignment and you can expect only a non-valuated GR or no GR. In addition, you must specify a tax code for the settlement in the item.

To automatically settle invoicing plans, choose the Create Invoicing Plan Settlement app in the Fiori launchpad. Or in the backend system, on the Easy Accessscreen, choose Logistics → Materials Management → Logistics Invoice Verification → Automatic Settlement → Invoicing Plan Settlement (MRIS).

In the selection screen, you can use the following criteria to select the invoicing plans to be settled:

• Company code
• Plant
• Supplier
• Purchasing document and document item

You can specify how the invoicing document is created with the following processing options:

• Per supplier
• Per PO
• Per order item

When the settlement run is complete, the system displays a log that lists the invoiced transactions and shows any errors which may have occurred.