Continuing with the explanation of the standard Valuation of a Goods Receipt for a Purchase Order - GR/IR amount., we will see now how the indicator for the goods-receipt-based invoice verification influences the process.
We can consider the following example:
We create in ME21N a Purchase Order for 150 PC at 15 EUR/PC. The indicator "GR-based IV" (EKPO-WEBRE) is set under the "Invoice" tab at item detail level:
In MIGO we post the Goods Receipt for this Purchase Order for a partial quantity of 100 PC.
The valuation is carried out according to the Purchase Order Net Value as follows:
Purchase Order Net Value = Ordered quantity x Net Price =150 PC x 15 EUR/PC = 2.250,00 EUR.
Goods Receipt Value = Quantity in the posting x (Purchase Order Net Value / Ordered quantity) = 100 PC x (2.250,00 EUR / 150 PC) = 1.500,00 EUR.
For a Material with Moving Average Price control the following Accounting Document is generated:
We post now an invoice in the transaction MIRO for the total ordered quantity of 150 PC at a different price than the one in the Purchase Order: 5 EUR/PC. This makes a total invoiced value of 750,00 EUR.
The posting to the GR/IR clearing account for this invoice is calculated as follows:
The first 100 PC in the invoice (already received) clear the value that we posted before to the GR/IR clearing account (WRX) with the goods receipt: 1.500,00 EUR.
Then, the remaining 50 PC (not yet received) are valuated according to the value of the invoice: 750,00 EUR for 150 PC:
50 PC x (750,00 EUR / 150 PC) = 250,00 EUR.
The total value of the posting to the GR/IR clearing account for this invoice is 1.500,00 + 250,00 = 1.750,00 EUR:
We post now in MIGO a further Goods Receipt for the remaining quantity of 50 PC. This goods receipt generates the following entries in accounting:
The valuation has been made again according to the Purchase Order Net Value:
Goods Receipt Value = Quantity in the posting x (Purchase Order Net Value / Ordered quantity) = 50 PC x (2.250,00 EUR / 150 PC) = 750,00 EUR.
In the same system we create now a new Purchase Order with exactly the same data. The only difference is that we do NOT set the "GR-based IV" indicator (EKPO-WEBRE) this time.
We post the same follow-on documents against this Purchase Order: First we post in MIGO a partial Goods Receipt for 100 PC, which, again, is valuated according to the Purchase Order Net Value:
Goods Receipt Value = Quantity in the posting x (Purchase Order Net Value / Ordered quantity) = 100 PC x (2.250,00 EUR / 150 PC) = 1.500,00 EUR.
Then in MIRO we post an invoice for the total ordered quantity of 150 PC at a different price than the one in the Purchase Order: 5 EUR/PC, making a total invoiced value of 750,00 EUR.
The posting to the GR/IR clearing account for this invoice is calculated in the same way as before, generating the following entries in accounting:
If we post now in MIGO a further Goods Receipt for the remaining 50 PC, the system will generate the following entries in accounting:
This is, this time the valuation of this second Goods Receipt is totally different from the one we saw in the first case. Here the valuation has been based on the clearing value of the invoice:
Goods Receipt Value
= Quantity in the posting x (Clearing value of invoice - Goods Receipt value) / (Invoiced quantity - Received quantity) =
50 PC x (1.750,00 EUR - 1.500,00 EUR) / (150 PC - 100 PC)) = 250,00 EUR
So the valuation between these two cases is different, depending on whether the "GR-based IV" indicator is set or not:
In the first case we have analyzed here, this indicator "GR-based IV" was set, but it was not used correctly, since we were invoicing quantities not yet delivered.
The process with "Goods Receipt-based Invoice Verification" is usually assuming that the invoice is presented AFTER the goods receipt. The program is building a direct relation between the invoice and the Goods Receipt document (field EKBE-LFBNR). This is visible in ME23N or ME23 when choosing the PO history view 'GR/IR assignment'.
Usually, every new Goods Receipt is a NEW reference object and expects a NEW invoice. So the schema of what happens is as follows:
1. Goods receipt A for quantity 100.
2. Invoice receipt M for quantity 150 -> assigned to A
-> the program expects an additional Goods Receipt of 50 within GR 'A'
Instead, we are posting:
3. Goods receipt B for quantity 50.
Now we have in the Purchase Order history:
reference document A
- GR A for 100, valuated at PO price
- invoice M for 150
reference document B
- GR B for 50, valuated with PO price
The system is now still waiting for a new invoice on goods receipt B.
We have over-invoiced GR A, and not invoiced GR B.
In our specific sample data:
This is the standard behavior. If this is not desired, do not flag the indicator "GR-based IV" or run the process as described below:
With "GR-based IV" the correct process for the second Goods Receipt would be to use the function 'A06 - Subsequent delivery' in MIGO, referring to the material document number of the first goods receipt. By referring to the first goods receipt, the two documents are linked and the second Goods Receipt will relate to the first invoice as well. This way, the Goods Receipt will be valuated using the invoice price and no balances will remain on the GR/IR account.
Following this process, the correct posting would have the following Purchase Order History in the GR/IR Assignment view:
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