Creating Invoices Automatically

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

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 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

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.

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