Creating Invoices Automatically

Objective

After completing this lesson, you will be able to automatically generate invoices using Evaluated Receipt Settlement (ERS)

Introduction

The following video introduces the last step in an automated procurement process: the Evaluated Receipt Settlement (ERS).

Evaluated Receipt Settlement Features

Another step toward automation is Evaluated Receipt Settlement (ERS).

If you want to use ERS, you must agree with the supplier not to send invoices for your purchase orders. Instead, you let the system automatically create invoices based on the goods receipts. In the case of ERS, this invoice represents a credit memo to the supplier. You can send a message to the supplier informing them of the settlement of their deliveries. 

The graphic shows the ERS process: the supplier does not send invoices for your purchase order. Instead, you have the system automatically create an invoice based on the goods receipt. The invoice is created based on the data from the purchase order and the associated goods receipt.

The invoice is created based on the data in the purchase order and the related goods receipt. The system calculates the amount to be paid to the supplier using the following data: 

  • Delivery quantity from the goods receipts that have not yet been settled (using the purchase order history of the purchase order item)

  • Purchase order price from the purchase order item

  • Tax information from the purchase order item

  • Terms of payment from the purchase order header data

Prerequisites for Evaluated Receipt Settlement

The graphic shows the prerequisites for the Goods Receipt Settlement.

The following prerequisites must be met before you can automatically settle goods receipts for a supplier:

  • The indicator for automatic goods receipt settlement (Evaluated Receipt Settlement indicator) must be set in the supplier master record.

  • A payment terms key must be entered in the header data of the purchase order. You can enter a default value for the terms of payment in the supplier master record in the purchasing organization data.

  • The following indicators must be set in the purchase order item:

    • Evaluated Receipt Settlement indicator: This indicator is defaulted in the purchase order item and can only be maintained if it is already set in the supplier master record.

    • Goods-Receipt-Based Invoice Verification indicator: This indicator can be derived from the purchasing organization data in the supplier master record or from the purchasing info record.

    • Tax Code : The tax code can be set manually in the purchase order item. The tax code can also be transferred from the source of supply into the purchase order.

The following demo shows the prerequisites for automatic goods receipt settlement.

DemoStart Demo

Automatic Goods Receipt Settlement

In the following demo, you will learn how to perform automatic goods receipt settlement using the Create Evaluated Receipt Settlement app.

DemoStart Demo

Post the Goods Receipt for the Purchase Order

Note

To perform this exercise, use the S4HANA T41 Fiori Launchpad.

If a value in the exercise contains ##, replace the ## characters with the number assigned to you.

The ordered oil drain screws have been delivered. Post the goods receipt for this material with reference to the according purchase order.

Prerequisites

Prerequisite for this exercise: A purchase requisition was created according to exercise 11 "Run MRP using the Check Material Coverage App" and a purchase order was created according to exercise 12 "Create a Purchase Order Automatically".

Steps

  1. The quantity of material F500-## (Oil drain screw incl. sealing ring ##) ordered by the supplier S4515-2## has been delivered in full. Enter the goods receipt with reference to the corresponding purchase order.

    Post the goods receipt using the following information:

    Purchase order

    < PO number from the "Create a Purchase Order Automatically" exercise>

    Delivery note04DN##
    Document date

    <Today's date>

    MaterialF500-##
    Quantity500 PC
    Storage location0001

    1. On the SAP Fiori Launchpad, choose the Goods Receipt Processing tile group and start the Post Goods Receipt for Purchasing Document app.

    2. Enter your PO number from the "Create a Purchase Order Automatically" exercise.

      If you do not know your PO number from exercise 12, search for purchase orders for supplier S4515-2##.

      To do this, proceed as follows:

      • Click on the input help on the right side of the Purchasing Document field.
      • On the Select: Purchasing Document window, enter the supplier number S4515-2## in the Search field and choose Go.
      • From the search result, select the item with material F500-##.

    3. On the Post Goods Receipt for Purchasing Document window, enter 04DN## in the Delivery Note field.

    4. In the Items section, select Material 0001 as Storage Location.

    5. Choose Post.

      A success message is displayed with the number of the posted material document.

      Choose ok, to close the Success message.

    6. To leave the app, choose (Navigate to Home).

  2. Display the stock/requirements list for material F500-## again.

    Which MRP elements are now displayed and what is the available stock for the material?

    1. On the SAP Fiori launchpad, choose the MRP tile group, and start the Check Material Coverage app.

    2. In the Find Material dialog window enter MaterialF500-## and press Enter.

      The Plant and the Shortage Definition are then proposed automatically.

    3. Choose OK.

      After the goods receipt, only the MRP element Stock with an available quantity of 500 pieces is displayed.

    4. To leave the app, choose (Navigate to Home).

Execute Evaluated Receipt Settlement

Note

To perform this exercise, use the S4HANA T41 Fiori Launchpad.

If a value in the exercise contains ##, replace the ## characters with the number assigned to you.

With the supplier Abbott Supplies Inc. (S4515-2##), it has been agreed that the goods deliveries are settled automatically. As a result, the supplier does not have to issue an invoice.

Prerequisites

Prerequisite for this exercise: Exercises 11 "Run MRP using the Check Material Coverage App", 12 "Create a Purchase Order Automatically", and 13 "Post the Goods Receipt for the Purchase Order" have been performed.

Task 1: Check prerequisites for Evaluated Receipt Settlement

If you want to use an automatic goods receipt settlement for a supplier, certain prerequisites must be fulfilled in the supplier master record and in the purchase orders.

Steps

  1. Make sure that the following indicators are set for supplier S4515-2## for purchasing organization 101C.

    • Indicator for evaluated receipt settlement (not the indicator "Automatic Evaluated Receipt Settlement", which is only relevant for return items)
    • Indicator for GR-based invoice verification

    To do so, use the Manage Supplier Master Data app.

    1. On the SAP Fiori launchpad, choose the Supplier and BP tile group, and start the Manage Supplier Master Data app.

    2. In the filter section (header section) enter S4515-2## in the Business Partner field and choose Go.

      A row with the supplier is displayed.

    3. To display the supplier master record, choose the arrow at the right of the row.

    4. On the Supplier window, choose the Purchasing Organizations tab page.

    5. Change the layout for the table in the Purchasing Organizations section.

      • Choose (Settings) at the top right of the table.
      • In the View Settings dialog window, mark the checkboxes for Evaluated Receipt Settlement and GR-Based Inv. Verif..
      • Choose OK.

      Now you can see in the table, that both indicators are set for the supplier.

    6. To leave the app, choose (Navigate to Home).

  2. For the purchase order you created in the exercise "Create a Purchase Order Automatically", make sure that the following indicators or values are maintained in the PO item:

    • Indicator for goods-receipt-based invoice verification
    • Indicator for evaluated receipt settlement
    • Tax code

    Use the Manage Purchase Orders app.

    1. On the SAP Fiori launchpad, choose the Purchase Order Processing tile group, and start the Manage Purchase Orders app.

    2. In the filter section, enter your purchase order number (or your supplier S4515-2##) and choose Go.

    3. Choose the arrow to the right of the line with you purchase order.

    4. On the Purchase Order window, choose the Items tab page and then choose the arrow to the right of the item line.

    5. On the Purchase Order Item window, choose the Process Control tab page.

      In this section, you can see that the indicators Evaluated Receipt Settlement and Goods-Receipt-Based Invoice Verification are set (value Yes).

    6. Choose the Tax tab page.

      In this section, you can see that a Tax Code10% Input Tax (Training) is maintained for the PO item.

    7. To leave the app, choose (Navigate to Home).

Task 2: Execute Evaluated Receipt Settlement

Once all prerequisites have been fulfilled, execute ERS for supplier S4515-2##.

Steps

  1. Settle the goods receipts entered for supplier S4515-2## in company code 1010. A separate invoice should be created for each purchase order. First make sure in test mode that you have made the correct selection. Then carry out the automatic settlement.

    After that, you can optionally open the automatically created invoice and display the data.

    1. On the SAP Fiori launchpad, choose the Supplier Invoice Processing tile group, and start the Create Evaluated Receipt Settlement app.

    2. Enter the following data on the initial screen:

      Company Code

      1010

      SupplierS4515-2##
      Document Selection2 (Document Selection per Purchase Order)
      Test Runmark checkbox

    3. Choose Execute.

    4. One item should be selected for settlement. You can see from the Postable column on the left-hand that the item is postable.

    5. Choose Cancel.

    6. Deselect the Test Run checkbox and choose Execute to carry out the settlement.

      The selected item has now been settled. You can see the invoice document number in the column Inv. Doc. No. The column FI Doc. shows the corresponding financial document.

    7. To display the invoice, choose the number of the invoice in the column Inv. Doc. No.

      Check invoice data like supplier, tax code, PO reference, material and quantity. These values should match the values of the previous exercises.

    8. To leave the app, choose (Navigate to Home).

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