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

Similar Messages

Two Way or Three way matching invoice

Hi Gurus,
Can you please tell me what does two way, three way invoice matching mean???
What is the use and impact of two way or three way invoce matching concept??
Thank You

Two way matching is
Invoice quantities and values for a supplier matched against the original purchase order quantity and values for the same supplier
Usually used for consumable purchasing
Three way matching is
Invoice quantities and values for a supplier matched against the original purchase order quantity and values for the supplier against a goods receipt posting made by your company
Usually used for stock purchasing

Three way matches

I need to check configuration setting to check if three way matches have been activated for
1) Vendor Order, Good Receipt and Payment to Vendor
2) Customer Order, Customer Invoice and Customer Payment
How do I do check this, what is the path.

Hi
For vendors check ME23n---Display PO
MIGO-- Goods receipt
MIRO--Invoice reciept
Regards
Aravind

Three way matching: the ultimate solution

All,
I've been looking for the ultimate solution and answer with regard to three way matching and how to make sure that it is always in place.
Up to now I used to rely on the GR based IV flag in the PO in combination with tolerance limits and MRBR for MIRO.
Lately the option if the GR and the IR indicator in the PO popped up but this leaves me with a couple of questions:
How do we know for sure that the goods receipt are always linked to the PO? (otherwise this will leave me a bunch of invoices I won't be paying)
How do we know for sure that all the invoices are linked to the PO? (Since MIRO provides me other options as well)
How do I know for sure that the invoice are blocked based on the right propositions? (I guess the tolerance limits but I really want to be sure this time)
How do I know for sure that the unblocking is done timely and is valid?
What's the impact of the document types in this story and how can I manage these best?
What it basically comes down to is that I'm more than happy to believe that setting the GR and the IR indicator in the PO is sufficient in combination with tolerance limits but I would appreciate it when somebody is able to talk me through the three way matching logic in SAP and the configuration impact.
Hopefully somebody can help me out.
Regs,
Paul

With regards to GR, if you are doing a 101 movement type Goods Receipt, it requires either a PO or a Production order to receive against. Receipts without a PO, 501's, 561's,etc should be restricted in the system. In most SAP implementations, the receiving department can usually just use the 101 (receipt against a PO) or a 102 (reversal) and 122 (return to vendor). So you should be pretty secure the receipts (if being done) are done against a PO.
I do not remember the table, but there was a table (at least in 4.7) that restricted the ability to do 2-way match (not allowed). You can also set the fields on the PO as required "GR-based IV"(WEBRE) and "IR Required" (REPOS field) to make sure it is required to have an IR and GR-based IV. GR Required indicator (WEBRE) should also be required if 3-way is ALWAYS happening.
I hope this helps?

Question for GR IR functionality - audit requirement (three-way) match

Hello,
I have a question in regards to three way match functionality in SAP (matching of PO, GR and IR). Auditors asked us if GR-IV indicator is checked for every PO, and for our company this indicator cannot be checked for every PO due to drop shipments, LC terms, etc. However, AP is ensuring that GR document is posted prior to posting IR for all POs. In this case, even though GR-IV indicator is not checked at PO item level, does SAP enforce automatic three way matching based on the tolerance key set (DQ and PP), or does SAP not perform three way match since the GR-IV indicator was not set in the first place?
Please share some insight. Thank you.

Hi,
As you know three ways match related to PO-GR-IV but in your case you want pay drop shipments and LC terms to vendor where you need two way match which is with PO-IV. The disadvantage in two way match, you never know whether the whole PO amount is delivered or not in your system (in real scenario). For two way match, select those vendors in t.code:XK02 and do not select check box of “GR-Based Inv. Verif.” in Control data segment in Purchasing data view & then save.
Now create a new PO and go for directly invoice verification WRT new PO.
For more refer threeway match details
SAP Threeway Match Functionality & configuration
Regards,
Biju K

How to enforce a three way match

Hi,
We are using SRM 5.0, ECC 6.0, ECS, Invocing in SRM. We are trying to enforce the three way match in SRM, so that the users should be able to enter the invoice but it should not be posted in to ECC until the Confirmation/GR is posted against that PO.
We tried setting the GR-based-IV flag on the vendor master, but this is not letting the user submit the invoice against the unconfirmed PO. Please share any ideas to achieving this.
Thanks in Advance,
Sree

Do you use Invoice Management System? Found some useful information in this link.
http://www.ies.state.pa.us/srm/lib/srm/2006_05_26_srm_007.pdf
We post invoices directly in R/3. The invoice goes into blocked status till the confirmation is received for the PO. When the confirmation is received, the 3-way match is complete and invoice gets posted.
Regards,
Suren

Three way match inter company Stock transfer orders

Hello All ,
     For Inter company Stock transfer orders our client for is planning to copy the net value from the billing document to Invoice receipt and Good receipt. Having that said , the PO price will be different from good receipt and invoice receipt. What will it be having the effect on Three way match.
Thanks in advance

Thanks for the input . I have one more quick question
At my client PO condition Type is ZSTO and Billing Condition type is ZV01 , both value are maintained in table.
One process they want to check where ZSTO is not equal to ZV01 as per example below.
1 .P O Price based on ZSTO = 450
2. Good Issue (based on material standard   xyz)
3. Billing document based on ZV01 = 350
4. Invoice receipt ?
5. Good receipt ?
Can you please let me know what would be the IR Price and GR price and if the IR and GR value is 350 will it effect 3 way match .
Thanks in Advance

Three-Way Match

We currently use three-way match as a standard AP process. A recent change has required a number of suppliers to be paid before actual goods receipt.
What is the best practice for the scenario where invoice needs to be paid ahead of physical goods receipt?
Can configuration be done to have match compare inbound delivery instead of goods receipt?
Regards,
JG

Hi Jeff,
SAP also has a prepayment process. Here are links to the SAP Help information on this process.
[PrePayment|http://help.sap.com/erp2005_ehp_04/helpdata/EN/29/6eec40a600e015e10000000a114b1d/frameset.htm]
[Entering Invoices|http://help.sap.com/erp2005_ehp_04/helpdata/EN/29/6eec40a600e015e10000000a114b1d/content.htm]
[Posting Prepaid Logistics Invoices|http://help.sap.com/erp2005_ehp_04/helpdata/EN/29/6eec40a600e015e10000000a114b1d/frameset.htm]
In the off chance you sometime do not plan to enter goods receipts or the order document would be considered a "blanket" type order, you could always use the standard functionality of Framework Orders (FO purchase order type) which only expect invoices.
SDN Link:[Framework Order|Framework Order]
Regards

How do I receipt for goods received? I have already created my PO. Learning the three way match process.

How do I receipt for goods received? I have already created my PO. Learning the three way match process. Navigations would be good.
Thank You!

Please visit following link.
Procure to Pay (p2p) R12 - erpSchools

MRBR not releasing invoice despite 3-way match

I have a PO with quantity 100. Then a GR was posted for quantity of 50. Then an invoice was posted for quantity 100. Invoice was blocked due to quantity variance beyond tolerance. Now another GR was posted with quantity 50. Now there is a 3-way match, I ran MRBR for the original invoice and selected auto release option. System is not releasing the block.
Anybody has any thoughts?

Check whether there are any payment runs/proposals that are already created for this vendors.
Also try to go to the accounting documents/invoices ( FB03) and try to remove the posting blocks manually over there.
Hope that helps..
Thanks,
Nandita

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

Three way match for Service PO

Is it possible to do 3-way match on Invoices for Service PO.
I am able to do 3 way match on Invoice for goods PO, but when I create Invoice for Service PO it does not check the Service confirmation.
Example for Service PO of 100$ when Service confirmation is done for 40$, I am able to process Invoice in R/3 for 100$ instead of 40$ for which confirmation has been done.
I am SRM 4.00 ECC 5.0 with ECS.
Thanks
Venkatesh

Hi Venkatesh,
We are also having a similar requirement. We need 3 way match for service PO's in R/3 in Extended Classic scenario.
I have couple of questions for you
1. Are you able to trigger service entry sheet in SAP backend from the Service confirmation in SRM?Is this happening in standard automatically when you create and save the confirmation?
2. When the service entry sheet is created in backend (replicated from SRM), does the GR also get created automatically?
3. Were you able to fix your issue with 3 way match and able to do ERS for Service PO's?
Regards,
Srivatsan

3 way match of invoice in SAP for legacy PO

My client is using legacy system for purchasing direct materials. SAP FI has been implemented. Customer like to carryout indirect purchasing (consumables - text purchase & MRO items) directly in SAP and hence we are configuring minimum org structure. When we suggested about 3 way match of invoices to customer for indirect purchases, customer expressed interest to carryout 3 way match for direct purchases as well in SAP. Please note that direct materials are procured in legacy system.
Customer query : Is it possible to carry out 3 way matching of invoices in SAP without material master & inventory management for direct purchases happening in legacy system. If so, please explain the solution and its pros and cons. Please share your experiences and lessons learned on similar requirement.. Also suggest alternate solutions..... Thanks for your time and help.

a three way match is matching quantity and price from purchase order, goods receipt and invoice receipt .
If all documents are done in SAP, then SAP will do this match when you enter the invoice
But if you procure in a external system and use only SAP-FI to post and pay invoices, then you cannot have a automatic 3way match. In that case the 3way match must be done manually by the accountant.

Table for 2way,3way matching .query to generate invoice with 2 ways matchin

hi
table for 2way,3way matching .query to generate invoice with 2 ways matching
plz help me
thanks

Hello John, I put the (1,2,3) list in the query to show it works with multiple invoices.
You should comment out the conditions:
select a.invoice_no, b.child, sum(a.amount) from invoice_detail a,
select
child,
decode (instr(scbp,'.'),0,scbp,
substr(scbp, 1, instr(scbp,'.') -1)
) starting_child
from (
select ltrim(sys_connect_by_path(child,'.'),'.') scbp,
child from
element_relation
start with child in (select element_id from invoice_detail /* where invoice_no in (1,2,3) */)
connect by child = prior parent
) b
where a.element_id = b.starting_child
/* and a.invoice_no in (1,2,3) */
group by a.invoice_no,b.child
order by 1,2to show it works for all invoices
regards, Tony

3 way match between PO/GR/IR per line item

Hi..
I'm having an issue with 3 way match between PO/GR/IR. I want to this on line item level. As standard, SAP will compare line items based on line item numbers when doing the match (at least for quantity match). However, this is not possible since the vendors don't always use the line items in the PO (send to them) to create the invoice. And sometimes they simply leave out the line item number. However, the material number is always on the PO, GR and IR. Is it possible to do the 3 way match per line item using the material number as the unique identifier?
Kind regards
hundvov

hi
Three Way Match
Yes, Three Way Match Means PO -> GR -> IV
For this, You need to Put Tick mark against GR Based IR in Purchase Order Item Detail Invoice Tab and Vendor Master Purchasing Tab.
Once This Purchase Order is Saved. You cannot do / System will not allow you IR Until you make Goods Receipt for the Purchase Order.
The same applies to External Services.
http://sap.ittoolbox.com/groups/technical-functional/sap-log-mm/sap-3-way-match-configuration-1639406
http://sap.ittoolbox.com/groups/technical-functional/sap-log-mm/3-way-invoice-match-1381773
regrds
kunal

Quantity variance in Invoice Vs. Three way match in PO

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