Process description : Invoice Reduction

Hi
I hope someone can explain the process Invoice Reduction.
I have made a PO for 10 pc of 100 EUR each - total 1000 EUR. I make a GR for the PO.
Then I register an Invoice (MIRO) for 1100 EUR from the vendor and park it because this is wrong.
I change the parked invoice to 1000 EUR and change the Layout to "Invoice reduction" and change the Correction Indicator to "Vendor error: reduce invoice".
This will alow me to post the invoice without any problems.
I have configured the REKL document for creating the print and maintained the condition for the vendor and this do not create any correction document.
I know that when i first park the document the system has not posted it before I change it, but is it not the process??
Can anyone please tell med how to run/trig an invoice reduction document and explain the process?
Thanks in advance
Jesper

You have not actually posted a Invoice reduction as the final invoice is for 1000 Eur only.
Only when you post the invoice to a value that is not proposed by the system Invoice reduction gets actually posted. It is not in anyway linked to the process of keeping the invoice on Parked status before posting it.
The process is as follows:
Allow the system to pick up the values for the invoice in MIRO transaction. Then go to invoice reduction layout. Click on the vendor error as the case may be. Then under the column actual invoice value enter 1100 Eur or any value that is different that what was proposed by the system You have to enter the actual qty and actual value. Only when the actual value columns are filled up invoice reduction posting happens

Similar Messages

Invoice reduction

Hello SAP Guru
Need your help in MIRO related issue.
Scenario is, we are doing invoice verification for an invoice which is of higher amount i.e. vendor has asked for more amount by mistake. We dont reduce the invoice, rather we pass the complete amount by putting the total amount of vendor invoice in amount field. System generates credit memo (vendor debit) for the extra amount. This extra amount is shown in balance field with green light.
Let me tell you what exactly user is doing:
If they receive any invoice with higher amount, they do the usual invoice verification and select invoice as transaction ID and give reference to PO. System suggests the amount as per PO & GR. They simply put the vendor invoice amount in amount field in header and system shows excess amount in balance filed with green light and allow us to post. System credits the vendor with the invoice amount and debits with the excess amount. They dont select invoice reduction as layout nor they give correction ID in MIRO, also they dont make any change in the field (amount / qty as per vendor invoice).
When I am doing the same process for few invoices, system is not allowing me.
vendor specific tolerance group has been defined as given below:
for negative diff :
absolute lower limit
Absolute negative lower acceptance limit 200.00-
% lower limit 4.00%
negative small diff 10.00-
for positive diff :
small diff 5.00
absolute upper limit 50.00
Percentage positive upper acceptance limit 2.00%
for invoice reduction :
Autom. invoice reduction: absolute upper limit 1000000.00
Even for some of invoices, we are not able to post the excess amount.
Please suggest.
Thanks & regards
Manoj Gupta

Hi Ishu
Tnx for your reply. Giving below are the error messages:
1) in one case the error message are
The tax amount must not be greater than the tax base
Message no. FF747
Balance in transaction currency
Message no. F5702
2) in second case the error messages are
Balance in transaction currency
Message no. F5702
Balance not zero: 496.25- debits: 387,468.25 ; credits: 386,972.00
Message no. M8534
Thanks & regards'
Manoj Gupta

Document Type for invoice reduction

Good day, the SAP Library mentioned of invoice reduction due to price variance. We use txn MIRO for invoice verification, following process as in SAP library; when posting error occured No separate type exist for invoice reduction. When adding the Document type for invoice reduction in txnOMR4, I've used KG (Credit memo) also used KA, but these postings (credit note) go to the Goods Received/Invoice Received, is it possible that these credit memo created by the system go against the vendor?

u do not need any separate document type for invioce reduction
what u need to do is select the invoice reduction varaint from layout in miro
system will genrate 2 fi document after posting in miro
1 will be invoice
2 will be creedit memo

Invoice Reduction Invoice Payment Terms - Due Date

Hi gurus,
At the time we apply invoice reduction in MIRO screen, both invoices (regular and reduction) take vendor payemnt terms (for ex Due in 30 dyas). Is it possible to assign the invoice reduction invoice a fix payment term "Due Immediately" via configuration?
Thanks in advance

Hi there,
Im afraid there is no setting that will have the system post different payment terms in the invoice reduction
than what is in the invoice. In MIRO, if you use PO reference to create the IV document, the payment terms are copied from the PO and not from the vendor master. The business reason is, that the PO represents the contract between vendor and customer including the terms of payment. Also check out note 322430 as this gives a good description of the proposal logic for the terms of payment.
I hope this helps,
Best regards,
Adam.

Message no. VN108 in MR90 - Invoice Reduction

Hi,
I cannot print out the invoice reduction form in MR90. I get the message: "No messages for initial processing exist
Message no. VN108" when entering the document number/year/company code with output type REKL.
I had a PO and did MIRO to enter the invoice with price variance. The excess amount went to the invoice reduction clearing account and was posted. When I tried to print out the Invoice Reduction form in MR90, it fails with above message.
I figured that I might have to process the payment so I did F110 and paid the vendor, clearing the open item. I still cannot print out the invoice reduction form in MR90, getting the VN108 message. I double checked all the config and it looks fine. Also have RK payment method for invoice reduction which is a Credit Memo (Invoice Reduction) with the price variance.
Any help on how to print this Complaint Form would be helpful.
Thank you.

After a whole day of playing around .. I finally got it to work. I can output the complaint form but when I execute it. It doesn't show up in the output. Then, I go back and select "Processing Mode" to "Repeat Processing" and it still doesn't show up.
Shouldn't the complaint output show up in "Repeat Processing" ? I also tried all other processing modes too. any advise?

Invoice Reduction-Vendor error: only a higher amount invoiced is allowed

Hi,
I am trying to replicate the "Invoice Reduction" Scenario (for both Price and Quantity Variance scenario).
1) Created a PO for 25 PCE and made GR for 10 PCE (10 USD/PCE).
2) Entering Invoice for 25 PCE and Amount 2500 USD and I have selected correction ID as Vendor Error: Reduce Invoice. So when the document is posted system should generates the Invoice document and Credit memo.
But I am getting the error as mentioned in subject.
Please find below the Error description:
Vendor error: only a higher amount invoiced is allowed
Message no. M8582
Diagnosis
The item amount in the invoice of 100.00 is smaller than the item amount of 2,500.00 suggested by the system.
System response
You currently cannot enter an amount that is smaller than that expected by the system. This would lead to a credit memo for the vendor.
Procedure
You can change the default values to correspond to the invoice and then post the invoice.
Regards,
Hari.

Hi,
Please check if the PO is GR based invoice verification is checked.
since the GR is only done for the partial qty while you enter the invoice and reducing it system is giving the error.
If vendor sends a higher amount /qty when compared to PO you can try for a reduction.
for more information on when and how an invoice reduction need to be done,please check the below link.
http://help.sap.com/erp2005_ehp_04/helpdata/EN/a8/b99284452b11d189430000e829fbbd/frameset.htm
and http://help.sap.com/erp2005_ehp_04/helpdata/EN/d6/36451bca1a4a81b974bb9114e41458/frameset.htm
and
http://help.sap.com/erp2005_ehp_04/helpdata/EN/a8/b9975e452b11d189430000e829fbbd/frameset.htm
Regards,

Invoice Reduction (Debit Memo) Scenario

Here is the processing I'm trying to get to work in SAP. Vendor send us an invoice, we post the invoice in MIRO and the invoice is blocked for payment (the Invoice price > PO Price). Now that the invoice is in blocked status, it is routed to the department that deals w/ discrepancies. They determine that it is a Vendor pricing error, so they send a Debit Memo to the Vendor stating we are posting a credit in the amount they over charged us.
It looks like the Invoice Reduction functionality in MIRO has what we are looking for (printing out the complaint and posting the credit to the account) except we don't know if the Vendor is at fault at the time of Invoice Entry. Is there a way to run Invoice Reduction or post a Debit Memo after the invoice is posted? Also, we have a few Golden Vendors where we won't send a Debit memo and will wait for them to send us a Credit memo before posting to the Vendor account, so the solution will need to take this into account.
As usual, any guidance you can provide will be appreciated.

I agree, you can use the Credit Memo functionality in SAP, but I don't think you can print out a form once the credit memo form to send to the Vendor that states you are taking the debit. It would also be useful if this process was automated. The invoice is blocked, you determine that the Vendor is at fault, the Credit Memo is automatically posted and a Debit Memo is printed out. Anyone aware of any bolt on software that might help?

MIRO post - Invoice Reduction Scenario - Duplicate SPLIT_KEY in RBWS

Hi Experts,
I came across a challenging issue... seeking help from you...
MIRO posting Vendor is Subjected to withholding tax & INVOICE REDUCTION scenario..... As per SAP Invoice Reduction scenarion, MIRO creates Invoice and subsequent debit memo for reduction amount.
When User try to post the LIV document, transaction returns the " Express Termination error " due to Duplicate entries are accumulated for Table RBWS with same SPLIT_KEY (Grouping key for Splitting Vendor line item ) for 2 sets of withholding Tax entries. ST22 system dump happens in FM- MRM_WITHHOLDING_TAXES_SAVE. Couldn't able to find the reason for Duplicate SPLIT_KEY
I Would like to understand significance of SPLIT_KEY in RBWS ? and
Under what circumstance MIRO posting will have different SPLIT_KEY
in RBWS for same MM document ??
Any insight would be great help.
Regards,
Sri

I agree, you can use the Credit Memo functionality in SAP, but I don't think you can print out a form once the credit memo form to send to the Vendor that states you are taking the debit. It would also be useful if this process was automated. The invoice is blocked, you determine that the Vendor is at fault, the Credit Memo is automatically posted and a Debit Memo is printed out. Anyone aware of any bolt on software that might help?

Automatic invoice reduction - MIRO XBLNR1 - Reference field

Hello all,
I've set up the automatic invoice reduction in MIRO due to errors in vendor invoice (with subsequent credit received in paper).
In this process there are two FI documents (A1 for invoice and background A2 for reduction) regarding the original MM document.
The user uses "refence" field in invoice header to relate to the vendors physical document but the field only goes into A1 (BKPF) document and not A2, event with this A2 being background document and in it's master this reference field being mandatory...
How can I put the reference field in A2 as well?
Regards.

Hello,
Procedure for posting the Invoice Reduction :
(1) Enter the T.Code MIRO - Select the Transaction as Invoice only.
(2) Give the reference number ( Example PO Number) for which you want to create an Invoice.
(3) In the Display Variant, Select Invocie Reduction.
(4) Maintain the required details and post the Invocie.
Example: Invoice Reduction due to Quantity Variance:
PO: 100 nos @ 10 EUR/No
GR: 40 nos
Invoice: 40 nos @ 12 EUR/No = 480 EUR
When you enter Invoice,
Order Qty Order Amount Invoiced Qty Invocied Amt
40 400
Select Reduce Invocie in the Display Variant.
Enter the Quantity and Amount stated in the Invocie in the fields Invoice quantity acc. vendor and Invoice amount acc. vendor.
Order Qty Order Amount Invoiced Qty Invocied Amt
40 400 40 480
When you post the Invocie, Purchase order history will be updated as follows:
Quantity Value
Total Delivered 40 400
Total Invoiced 40 400
Accounting Documents:
GR:
Stock Account = 400
GR/IR Clearing Account = 400(-)
Invoice:
Vendor Account = 480(-)
GR/IR Clearing Account = 400(-)
Invoice Reduction Clearing Account = 80(+)
Automatic Credit Memo:
Vendor Account = 80(+)
Invoice Reduction Clearing Account = 80(-)
Regards
Mahesh Naik.

Invoice Reduction: No separate document type exists for invoice reduction

Hi,
I am posting a document for Invoice Reduction and getting the following error message. I have seen the document types in OBA7 T-code. What is the document for Invoice reduction, is it same as Credit memo or different one?
Can you Pls guide me to complete the transaction successfully.
Error Message:
No separate document type exists for invoice reduction
Message no. M8507
Diagnosis
You want to post an invoice that has been reduced. This results in two FI documents being created. You require different document types to process both FI documents correctly.
System response
The invoice cannot be posted.
Procedure
Your system administrator must enter a separate document type for invoice reduction with transaction MIRO in Customizing for Logistics Invoice Verification.
Regards
Hari.

Hi Hari,
Procedure for posting the Invoice Reduction :
(1) Enter the T.Code MIRO - Select the Transaction as Invoice only.
(2) Give the reference number ( Example PO Number) for which you want to create an Invoice.
(3) In the Display Variant, Select Invocie Reduction.
(4) Maintain the required details and post the Invocie.
Example: Invoice Reduction due to Quantity Variance:
PO: 100 nos @ 10 EUR/No
GR: 40 nos
Invoice: 40 nos @ 12 EUR/No = 480 EUR
When you enter Invoice,
Order Qty            Order Amount         Invoiced Qty        Invocied Amt
40                        400
Select Reduce Invocie in the Display Variant.
Enter the Quantity and Amount stated in the Invocie in the fields Invoice quantity acc. vendor and Invoice amount acc. vendor.
Order Qty            Order Amount         Invoiced Qty        Invocied Amt
40                        400                          40                        480
When you post the Invocie, Purchase order history will be updated as follows:
                           Quantity           Value
Total Delivered    40                    400
Total Invoiced     40                     400
Accounting Documents:
GR:
Stock Account = 400
GR/IR Clearing Account = 400(-)
Invoice:
Vendor Account = 480(-)
GR/IR Clearing Account = 400(-)
Invoice Reduction Clearing Account = 80(+)
Automatic Credit Memo:
Vendor Account = 80(+)
Invoice Reduction Clearing Account = 80(-)
Thanks
Sunil.

Invoice reduction report

Hi,
Is there any report where I can get the list of Invoices where Invoice Reduction is used in MIRO
Regards
Sameer

No , there is no standard report,You have to develop the zreport.
Prashant

Error 'Document 1000 0000000001 2014 already assigned' while posting invoice reduction

Hi Gurus,
here is my situation:
I have created sch.agreement,
GR done and posted IR.
Now created credit memo through MIRO to reverse my previous invoice.
then posted IR(consider number as 0000000001) with higher price.
then this invoice was rejected by buyer due to higher price.
now when i am trying to post this invoice through invoice reduction i am getting an error F5-152: 'Document 1000 0000000001 2014 already assigned'.
Please note that here the number range customized as external and user dont want to change it to internal.
So, Please help me to solve this issue ASAP.

Hi Sankar, By looking at your issue, It seems number range has been maintained in such a way where MM Document number = FI Document number where in FI External number range is maintained for RE document type. If this is the case, first check whether Document mentioned above is already generated in FI.(check in FB03) or it is already available in MM.(check in MIR4) By comparing the Number range of FI and MM you can get an idea in which number range problem exists. Then go to that respective internal and change the completed number range by one number so that this mismatch can be set right. But before changing ensure that above said pre-requisites are met. Regards Karthikeyan G

Inbound processing of INVOIC IDOC without PO number and item check

Hi All,
I'm processing an Inbound INVOIC IDOC to create an Intercompany Vendor Invoice against a Purchase order but wish to do process this based on the delivery note number rather than the PO number. The INVOIC IDOC will not contain a reference to the Purchase order and thus the need to process it based on the delivery note number which will be referenced in the Purchase order Goods receipt.
However, when processing the Inbound INVOIC IDOC it is validating that the number in IDOC segment E1EDP02 with QUALF 001 is the purchase order number. In this scenario it won't be and therefore it errors. The delivery note number is in IDOC segment E1EDP02 with QUALF 016.
Could someone please tell me if there is a standard way that we can have this Inbound INVOIC IDOC processing using only the delivery note?. If I manual process in the MIRO transaction I can process an Invoice based on the dleivery note in the Goods receipt so would expect I should be able to do so also with the IDOC processing.
I have noticed that IDOC segment E1EDP19 with QUALF 003 is not being populated and therefore according to the SAP help the IDOC segment E1EDP19 with QUALF 002 holding the Vendor material number is checked. Could this have something to do with it not being able to process the Invoice using only the delivery note number reference?.
Thanks in advance,
Michael

Hi Karen,
According to Note 103051 - EDI: Multiple reference to same purchase order item.
Module IDOC_INPUT_INVOIC_MRM (only as of Release 4.0) for the logistics invoice verification can distinguish different goods receipts by means of the delivery note number. For this purpose, GR-related invoice verification must be active. Please check the note.
Thank you,
Shyam

Invoice Reduction-problems

Hi, to everyone
plz help me how accounting enteries are happening in Invoice Reduction
PO: 100 nos @ 10 INR
GR: 40 nos
Invoice: 40 nos @ 12 INR = 480 INR
how enteries takes place.
thanks

Hi,
check following sap link
[http://help.sap.com/saphelp_470/helpdata/en/a8/b99284452b11d189430000e829fbbd/content.htm]
[http://help.sap.com/saphelp_470/helpdata/en/a8/b9975e452b11d189430000e829fbbd/content.htm]
Regards
Kailas Ugale

Invoice Reduction Issue

Hi Gurus,
I am facing one problem in invoice reduction where solution is required.
If the vendor send the invoice of lesser value, then the value proposed by the system, the system is not permit to enter the invoice, (even if try to enter value 5599.99)
<b>the system is only permitting to enter the invoice of higher amount.</b>
it is throwing following error:
<b>Vendor error: only a higher amount invoiced is allowed
Message no. M8582
Diagnosis
The item amount in the invoice of 5,500.00 is smaller than the item amount of 5,600.00 suggested by the system.
System Response
You currently cannot enter an amount that is smaller than that expected by the system. This would lead to a credit memo for the vendor.
Procedure
You can change the default values to correspond to the invoice and then post the invoice.</b>
pl help
thanks in adavnce
regards
Ramprasad

Hi,
Invoice reduction is only designed to handle the situation where the vendor is asking for MORE than the amiunt due and not LESS.
If the vendor is asking for less than the system has calculated thern simply post the invoice WITHOUT reduction.
Invoice reduction is designed to create a credit memo automatically for the extra amount that the vendor is asking for. There is no credit memo required in this case because they are under invoicing. The system cannot create an additional invoice for the difference, this is not acceptable accounting.
Steve B

Process description : Invoice Reduction

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