SES reversal and related issue

Question

Hello,
ECC 6.0. Here is my situation. Please help!
-We have a service PO for $1000. (Commitment $1000 was created)
-We did a service entry sheet for $1000. (Commitment for $1000 was reduced.)
-GR document got created automatically for $1000.
-Did invoice for $500.
Now i wanted to reverse everything---since i wanted to enter the SES for $500.
-Therefore, i reversed invoice.
-Then i went in and reversed service entry sheet for the entire amount ($1000)
-The GR document got reversed for just $500.WHY?
I need the entire $1000 to be eliminated from the GR document so that i can start from the beginning.
Please assist!!!
Trey

Answer 1

Hi Trey,
You are right, now im getting your results!
The reason is because of Gr Based IV. When you use GR based IV for services, and then you put partial amount in MIRO, the accounting entries get screwed up.
For example,
After Acceptance,
Debit Expense   1000
     Credit GR/IR       1000
Invoice Receipt,
Debit GR/IR        1000
      Credit Vendor     500
      Credit Expense   500
Now cancel Invoice Receipt,
Debit Vendor       500
        Credit  GR/IR     500
If you count the math, the reversal didnt reverse everything properly, therefore its giving you the wrong account balance. In this case, theres still a balance:
Debit   GR/IR       500
         Credit Expense  500
This is why when you cancel acceptance, it is only reversing 500, because system assumes that you have done invoice for the other half.. well thats what i think.
To fix the issue, please go to vendor master (XK02) --> purchasing view, then tick on Service Based Inv. Ver.
By doing this, whenever you create Service PO, the Service Based Inv. will be automatically checked.
Difference when you check on Service Based Inv, during MIRO screen you can actually see the breakdown service lines. Without it, it will only appear as 1 line in MIRO eventhough you have 10 service lines.
Another thing, when you perform MIRO transaction with partial, please distribute the price and quantity proportionately.
E.g. if service is 10$ for 1 HR
and invoice is actually 5,
so in MIRO make it 5$ and 0.5 HR. (This is if you are expecting the balance service to be performed later).
If no services are to be performed later, reverse GR and then make the new GR = Inv.
Hope this helps.