Quantity Variance in Invoice Verification

Dear All
I have a requirement where the system should display error in Invoice Verification if the quantity exceeds Goods Receipt quantity however there should be seperate treatment.
ie.If the quantity variance upto 5 percent is allowed for raw material but for spares material no variance is allowed.
Can we have the tolerances configured for material type.
Regards

Hi,
configure the tolerance key DQ for the quantity variance.
Regards,
velu

Similar Messages

Quantity Tolerance in Invoice Verification

All,
I have an issue in Direct Trading flow. PO qty received at 10,500, sales order qty 10,500, billing document 10,500 and invoice qty at 10,500.05. The system is not allowing me to close the sales order due to the weight discrepancy in logistics invoice.
Is there any customizing available to set a quantity tolerance in Invoice Verification (as the one existing for Amount)?
I tried to check final invoice in the invoice tab of my PO but it did not work : sales order is still "Being processed".
Thanks in advance,
Laure

hi,
Your question is little confusing...Do you wanna check the duplicate invoice check...then check SPRO settings here:SPRO >> MM >> LIV >> Check for duplicate invoices...
If you want to have the tolerances applied then check here:
SPRO>> MM >> LIV >> Incoming invoice >> set up vendor specific tolerances...but remember that this will be in terms of amount with respect to that quantity...so if the tolerance is 0% then the amount shd be exactly same...otherwise the system will block the invoice for qty variance...
Hope it helps..
Regards
Priyanka.P

Quantity variance in Invoice Vs. Three way match in PO

Hi Experts,
I am not able to find any differrence between quantity variance Vs. Three way match in PO.
For example in our purchase orders for all the items we are having Two way match (PO-Inv, GR-Bsd Inv is not checked) but we have defined quantity varaince in Invoice. So when we are trying to post invoice for purchase order item for which goods reciept is not performed, system is blocking the invoice due to quantity variance.
So i think if you have quantity variance at invoice level then system is going to check whether goods reciept is perfromed or not regardless of Two way or three way match.
Please advise if my understanding above is correct.
My second question is as we can define two way/three way match at various level (Supplier, Inforecord etc.). Is there anyway that i can define that quantity variance in Invoice should be for certain material groups only.
Please advise.
Regards,
Kamal

hi,
when you set the qty variance, and try to post the invoice just after the PO, the system will show a message at IR ie. " Quantity delivered is Zero"...
this message is warning message...
The system will block the invoice item when the doc is posted, depending on how the tolerance key DW is set(Qty variance to Gr qty = zero)...
Hope it helps..
Regards
Priyanka.P

Moving average price variance in Invoice verification

Hello,
I set in sys that the moving average of price variance will be check in tolerance of x% (lower & upper limit) BUT the system ignore it , when I save an Invoice (MIRO) with price that change the moving average price for more than X% the invoice was saved with no W/E massage . I set all massages that seams to be relevant with E but nothing was happened .
What is the way to set the system that in Invoice verification stage it will check the moving average price variance and give an alert or will not let the invoice to be post ???
Best Regards
Idit

Hi,
You can block Invoices using transaction code OMC0
(a) Use Tolerancy Key VP for your company code
(b) Fill-up Lower and Upper check tolerance limit %
When a stock posting line is created as a result of an invoice item, the system calculates the new moving average price that results from the posting. It compares the percentage variance of the new moving average price to the old price using the percentage tolerance limits defined.
Bye,
Muralidhara

Block Invoice verification as per quality result

Hello,
I made GRN , lot gets generated. not cleared by quality.
still I can do the invoice verification.
Can I restrict this ? so i can not pass invoice before quality results and only ok quantity has to appear for invoice verification.
If such facility is available kindly advice.
Regards,
santosh joshi

Dear Santhosh Joshi,
Check in IMG (Transaction SPRO) under :
Materials Management -> Logistics Invoice Verification -> Invoice Block
You can implement a proper BAdi/Enhancement if you cannot configure your scenario:
BAdi:
BAdI MRM_RELEASE_CHECK for additional checks before invoices are released, in other words, you can restrict the list of invoices to be released by defining your own criteria.
The following SAP enhancements are available for maintaining the customer exits in Invoice Verification:
MM08R001        ERS (conventional Invoice Verification)
MM08R002        Tolerance checks
MRMH0001        ERS (Logistics Invoice Verification)
MRMH0002        EDI invoice receipt (Logistics Invoice Verification)
MRMH0003        Revaluation (Logistics Invoice Verification)
When processing an invoice, the R/3 System checks each item for variances between the invoice and the purchase order or goods receipt. The different types of variances are defined in tolerance keys.
The system uses the following tolerance keys to check for variances:
AN: Amount for item without order reference
If you activate the item amount check, the system checks every line item in an invoice with no order reference against the absolute upper limit defnied.
AP: Amount for item with order reference
If you activate the item amount check, the system checks specific line items in an invoice with order reference against the absolute upper limit defined. Which invoice items are checked depends on how you configure the item amount check.
BD: Form small differences automatically
The system checks the balance of the invoice against the absolute upper limit defined. If the upper limit is not exceeded, the system automatically creates a posting line called Expense/Income from Small Differences, making the balance zero and allowing the system to post the document.
BR: Percentage OPUn variance (IR before GR)
The system calculates the percentage variance between the following ratios: quantity invoiced in order price quantity units : quantity invoiced in order units and quantity ordered in order price quantity units : quantity ordered in order units. The system compares the variance with the upper and lower percentage tolerance limits.
BW: Percentage OPUn variance (GR before IR)
The system calculates the percentage variance between the following ratios: quantity invoiced in order price quantity units: quantity invoiced in order units and goods receipt quantity in order price quantity units : goods receipt quantity in order units. The system compares the variance with the upper and lower percentage limits defnied.
DQ: Exceed amount: quantity variance
If a goods receipt has been defined for an order item and a goods receipt has already been posted, the system multiplies the net order price by (quantity invoiced - (total quantity delivered - total quantity invoiced)).
If no goods receipt has been defined, the system multiplies the net order price by (quantity invoiced - (quantity ordered - total quantity invoiced)).
The system compares the outcome with the absolute upper and lower limits defined.
This allows relatively high quantity variances for invoice items for small amounts, but only small quantity variances for invoice items for larger amoutns.
You can also configure percentage limits for the quantity variance check. In this case, the system calculates the percentage variance from the expected quantity, irrespective of the order price, and compares the outcome with the percentage limits configured.
The system also carries out a quantity variance check for planned delivery costs.
DW: Quantity variance when GR quantity = zero
If a goods receipt is defined for an order item but none has as yet been posted, the system multiplies the net order price by (quantity invoiced + total quantity invoiced so far).
The system then compares the outcome with the absolute upper tolerance limit defined.
If you have not maintained tolerance key DW for your company code, the system blocks an invoice for which no goods receipt has been posted yet. If you want to prevent this block, then set the tolerance limits for your company code for tolerance key DW to Do not check.
KW: Variance from condition value
The system calculates the amount by which each delivery costs item varies from the product of quantity invoiced * planned delivery costs/ planned quantity. It compares the variance with the upper and lower limits defined (absolute limits and percentage limits).
LA: Amount of blanket purchase order
The system calculates the sum of the value invoiced so far for the order item and the value of the current invoice and compares it with the value limit of the purchase order. It then compares the difference with the upper percentage and absolute tolerances defined.
LD: Blanket purchase order time limit exceeded
The system determines the number of days by which the invoice is outside the planned time interval. If the posting date of the invoice is before the validity period, the system calculates the number of days between the posting date and the start of the validity period. If the posting date of the invoice is after the validity period, the system calculates the number of days between the posting date and the end of the validity period. The system compares the number of days with the with the absolute upper limit defined.
PP: Price variance
The system determines by how much each invoice item varies from the product of quantity invoiced * order price. It then compares the variance with the upper and lower limits defined (absolute limits and percentage limits).
When posting a subsequent debit/credit, the system first checks if a price check has been defined for subsequent debits/credits. If so, the system calculates the difference between (value of subsequent debit/credit + value invoiced so far) / quantity invoiced so far * quantity to be debited/credited and the product of the quantity to be debited/credited * order price and compares this with the upper
and lower tolerance limits (absolute limits and percentage limits).
ST: Date variance (value x days)
The system calculates for each item the product of amount * (scheduled delivery date - date invoice entered) and compares this product with the absolute upper limit defined. This allows relatively high schedule variances for invoice items for small amounts, but only small schedule variances for invoice items for large amounts.
VP: Moving average price variance
When a stock posting line is created as a result of an invoice item, the system calculates the new moving average price that results from the posting. It compares the percentage variance of the new moving average price to the old price using the percentage tolerance limits defined.
Hope this will resolve your issue.
Regards,
Naveen.

MRBR release invoices automatically quantity variance

For a purchase order item there are several good receipts
and several invoices. Although the quantity of the goods receipt is smaller than the quantity invoiced, the quantity of goods received is bigger than the first invoice. So the first invoice should be released automatically. However no invoice is released!
Is this how SAP works standard, or can I customize this somewhere?
Example:
quantity received: 100 + 100 = 200
quantity invoiced:
invoice 1:   100
invoice 2:   200
total    :   300

Hello,
The GR-based IV flag is not on for the item. Thank you for your answer, but is does not help me.
I believe there is no solution for this problem.
This is the way how SAP works. At the moment an invoice is posted the systems checks the quantity invoiced and received (and other checks). If something is wrong the invoice gets a block at that moment. Later with the automatically release of invoices the systems checks if the quantity variance still exists.
With tolerance limit DQ the system checks for all invoices with a block if the total quantity invoiced is less or equal to the total quantity received. So the system does not check only the quantity of the invoice with a block.
If you change the limit of tolerance limit DQ to 5000 euro to many invoices will be released, also invoices that should keep a block.
For example:
quantity received: 3
quantity invoiced: 3+3= 6.(both invoices had a block, because DQ absolute limit was zero).
After raising the limit to 5000 euro, both invoices were released, which is wrong!
It is logical that DQ should have a low limit. SAP only tries to relase the invoices with block. There also can be invoices without block.
For example:
quantity received: 3 - 3 + 3 = 3
quantity invoiced: 3 (block)
          +3 (no block)= 6.
The invoice with block should not be released. SAP only knows this when SAP does a check of the total quantity invoiced and received.

Invoice blocked for price variance or quantity variance

Dear friends,
In case if in the PO, either there is a price difference between GR and IR or a quantity difference between GR and IR, then does the invoice posted stays automatically in a "blocked" status??
If not, then can we manually do some configuration to make this possible? The intention is that such invoices(with price variance or quantity variance) should remain in blocked status and should not be picked for payment in F110 run.
Please advise asap.
Rgds,
Kunal Vichare.

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http://www.sapfans.com/forums/viewtopic.php?f=6&t=324521
http://www.sapfans.com/forums/viewtopic.php?f=6&t=336490

Quantity Variance block for Invoice

Hi All,
In one scenario I have ordered 27,000KG Materials for 90 per 1000 KG.I did the GR for whole quanity( 27,000 ).
But while doing Invoice I booked for 27 KG as quantity and amount as 2430. Instead of 27,000 KG i did booked Invoice for 27KG with the total amount.Invoice got block with reason price variance.
Here my question is why system is only blocked for price variance ? it should have blocked for Quantity varaince why it is not?
I maintained l tolerance key (DQ) for Quantity variance with higher & low limits.Still it is not blocked with quantity reason.
I have noticed that it is blocking invoice with quantity variance when I entered more quantity than delivered quantity.But why it is happening when I entered less quantity.Can any one explain what could be the reason.
Thanks in advance.
Regards,
Srikanth P.

The lower tolerances generally don't produce a block. They are warning or informational only.
You don't really want a block either. If 100kg are received as 2 x 50kg but you only get an invoice for 50 but at the correct price, you don't want a block. You simply expect another invoice for 50kg.
Regards,
Nick

During invoice verification- error "Invoice Quantity exceeds GR quantity".

Dear friends,
Myclientisfacing a problem during invoice verification(invoice quantity exceeds GR quantity).
user created PO withtwo line items. in first line item he used account assignment K (cost center) for cable purchase. and inthe second line item he used account assignment category -K and item category -D for cableinstallation charges. foe firat line item he created GR(migo) and for the secondlineitem being service he did service entry sheet(ML81N). while doing invoice verification they got the error "Invoice Quantity exceeds GR quantity". so we tried to post the first lineitemand it was successfully posted.while doing invoice verification for second line item it is throwing "Invoice Quantity exceeds GR quantity".
please help me in this to solve the issue.
Thanksin advance.
Regards,
william

Hi,
Please check that if your second line item which happened to be service line item as you have mentioned have the service base invoice verification checked in the invoice tab of second line item (line item detail level). If so the you need to post your service entry sheet after releasing it. System will generate a 101 movement material document in the back ground.
Hope it helps.
BR

GR-Based Invoice Verification

I am having problems with the GR-Based Invoice Verification flag in the POs.
Basically what I need is for the system to not allow me to post invoices over the good receipted quantity. I manage to get that control switching on the "GR-Based IV" flag in the PO, but at the cost of having to set the GR reference whenever I make an invoice.
Is there someway in which I could post invoices in the system without making reference to the good receipt material document number while keeping the check that does not allow me to invoice over the total GR amount?
Thanks

Hi,
you have to set the tolerance limit for the Invoce Verification for the respective Comapany Code.
goto, IMG - Material management - Logistice Invoice verification - Invoice Block - Set Tolerance limits (OMR6)
Set upper and Lower limits as zero.
BW: Percentage OPUn variance (GR before IR)
The system calculates the percentage variance between the following ratios: quantity invoiced in order price quantity units: quantity invoiced in order units and goods receipt quantity in order price quantity units : goods receipt quantity in order units. The system compares the variance with the upper and lower percentage limits defined.
Regards,
Pravin

Tolerance keys & Message No. configuration for invoice verification

Hi Consultants,
I need to configure the tolerance limits for scheduling agreements Which should prevent :
accounts payable from posting invoices beyond a scheduling agreements validity end date.
Accounts payable from posting invoices when the quantity invoiced is above the quantity ordered on the scheduling agreement.
for this cofiguration can some body help me what are all the tolerance keys should be maintained and what are all the message No. should be configured in warning for invoice verification.
with regards
GNK

Hi,
Go to OMR6 for the company code set the tolerance limit for the tolerance key
DQ -Quantity Variance
PP --Price Variance
ST- Date
G.Ganesh Kumar

How to post Freight Charge in INbound INVOIC Idoc? (MM Invoice Verif)

Hi Folks,
Would like to post an inbound invoice(810) IDoc that has multiple line items that may or may not have variances(quantity, price, etc.). MM Logistics Invoice verification is the process used for posting our invoices for raw materials. We would like for the line item variances to continue to post to the PPV account. Our problem is freight. Freight in this instance is in the header of the IDOC(segment E1EDK05). For example, we create a purchase order with 3 line items for $100.00 each totaling $300.00 for the purchase order. We receive an EDI Invoice for $345.00 which contains a $45.00 charge in the header for freight. We would like for the freight to be posted to the appropriate account. Currently the $45.00 difference in P/O total and Invoice total is being posted to the PPV account. Your helpis appreciated!
What if Freight charge is populated as Line item in the inbound invoic idoc. Will the inbound program allow this kind of posting??
Throw some light experts.
Thanks,
Matt
Edited by: Creasy Matthew on Aug 16, 2009 6:25 PM
Edited by: Creasy Matthew on Aug 16, 2009 6:25 PM

Yes, you can include the freight cost in line item as well but that would not be advisable. Why don't you include Fright Cost in your pricing procedure ??? Do check the following link
How to account freight in purchase order

Need to do invoice verification even PO price is zero due to 3rd party sale

Dear friends,
AR complained he is not be able to do invoice with message " Billing quantity is zero"
After diagnosis, I found out it's a third party sales order..followed by Purchase order, becasue materials are free stock, thus PO has no unit cost..,after we issue GR, our AP can't to invoice verification (MIRO) due to PO priced is zero, which cause AR is not be able to invoice.
I temporarily solve the problem by reverse the GR, addn cost in PO, followed GR(MIGO) and IR (MIRO), at MIRO I adjust GL to offset the balance to price variance, in this way ,we don't need to actually pay vendor. Then AR is able to do invoice
My question is If there is any way that enable me to invoice verification even if PO price is zero to enable further customer invoice for third party sales process.
Your advice will be deeply appreciated.
Thanks,
Linda
Edited by: Linda Gao on Jun 29, 2011 8:33 PM

A real 3rd party order does not need a goods receipt.
it only needs an invoice receipt which in turn enables billing to the customer.
As a free of charge delivery is usually not billed, this process is not possible in SAP without modification.
compare OSS Note 498162 - FAQ: Third-party order processing in purchasing:
1. Question:
Why is a free of charge third-party item not possible?
Answer:
In the standard system it is not planned to generate a free of charge item during third-party order processing, here an invoice receipt is required. The invoice receipt updates the purchase order history.Without this update, there is no confirmation stating that the order was delivered.This is controlled by item category table T163 and indicators REPOS and REPOV here.If you want to use free of charge items for 'Third-party', you have to set field REPOV for item category 5 to ' ' in table T163.You have to carry out the changes with Transaction SE16.This is a modification.

Order price quantity variance

Hi
What are the restrictions that can be maintained for order price and quantity variance?
Regards

Hi,
Go to SPRO > MM > Purchasing > Purchase Order > Set Tolerance Limits for Price Variance (It will be considered during PO)
The standard SAP System supplied contains the following tolerance keys:
o   PE   Price variance, Purchasing
    -   Tolerance limit for system message no. 207. This message appears
        if the specified effective price exceeds the predefined
        tolerances when compared with the material price.
o   SE   Maximum cash discount deduction, Purchasing
    -   Tolerance limit for system message no. 231. This is a warning
        message, which appears when the specified cash discount
        percentage exceeds the predefined tolerances.
Go to SPRO > MM > Inventory Management and Physical Inventory > Goods Receipt > Set Tolerance Limits
o   B1 ( order price quantity variance with error message)
o   B2 (order price quantity variance with warning):
o   VP (variance from moving average price)
Go to SPRO > MM > Logistics Invoice Verification > Invoice Block > Set Tolerance Limits
BR   Percentage OPUn variance (IR before GR)
BW   Percentage OPUn variance (GR before IR)
DQ   Exceed amount: quantity variance
DW   Quantity variance when GR qty = zero
PP   Price variance
PS   Price variance: estimated price

Invoice Verification tolerance price varience

Hi All,
I have set Invoice verification tolerance key PP upper limit 5 % and value 5 in customizing.
I have also set message M8082 and M8083 as error message in customizing.
My requirement is to limit user from posting invoice above 5 % of GRN Amount.
The message customizing is working fine for value (M8082) however I cannot get message M8083 for % of invoice amount tolerance.
I want message M8083 to be triggered at invoice verification which is not happening.

Hi,
If the price in an order item is marked as an estimated price, for this item, the system calculates the difference between the invoice value and the product of quantity invoiced * order price and compares the variance with the upper and lower tolerance limits defined
Please confirm your PO should have following check on condition control tab
and maintain the Tolerance key PS for upper and lower % limits, system first go through Val. check and then % tolerance limit check,
then you will get the message M8083
Sohaib Mahmood wrote:
My requirement is to limit user from posting invoice above 5 % of GRN Amount.
The message customizing is working fine for value (M8082) however I cannot get message M8083 for % of invoice amount tolerance.
I want message M8083 to be triggered at invoice verification which is not happening.
if you want to limit the user from posting the invoice by 5% tolerance, then maintain PP tolerance key,
you will get the message M8082 this will solve your purpose,
If your business demand for estimated price variance then maintain PS tolerance key you will get the message M8083
Thanks
Message was edited by: k j

Quantity Variance in Invoice Verification

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