Logistics Invoice Verification (MIRO)

Purpose

Use this procedure to enter an invoice / credit note or Subsequent Credit/Debit into SAP to match against the purchase order.

Use this transaction to Amend / Change or Delete "Hold" or "Park" documents.

Use this transaction to Display Invoices / Credit Notes and Subsequent documents.

Use this transaction to Reverse an existing Invoice / Credit or Subsequent Document.

Trigger

All purchases made by the University of Leeds must have a valid purchase order within the SAP system.

Goods receipt details must also be entered on receipt of the supply to enable the following procedure to work effectively. It is this goods receipt action that will debit the department.

The invoice can only be posted onto the account if sufficient goods receipt details remain against the order.

When an invoice is received for goods / services supplied, the department responsible will post the document into SAP. This action will immediately affect the accounts. The invoice verification process is conducted jointly between the Resource Centre and Central Finance. Invoices are 'posted' in SAP, using transaction MIRO, by the Resource Centre. Central accounts payable then release the documents and make payment by BACS or cheque.

Prerequisites

• A valid SAP purchase order.

• Goods receipt note against the relevant purchase order.

• Only Held or Parked documents can be changed or deleted.

Menu Path

Use the following menu path to begin this transaction:

• Select go to the Invoice Verification screen.

Transaction Code

Additional Information

VAT Only invoices need to be processed by Juliet Smith (Tax A/c Finance), who can be contacted on ext.36031.

Procedure

1. Perform one of the following:

If	Go To
You want to enter an invoice	Step 2
You want to enter a credit Memo and you have the invoice on your desk	Step 43
You want to enter a credit memo and the invoice it relates to has been sent to AP	Step 52
You want to enter planned delivery costs	Step 24
You want to enter unplanned delivery costs	Step 31
You want to enter an early payment discount	Step 39
You want to record construction industry tax	Step 65
Troubleshooting when Debits are greater than Credits	Step 63
Troubleshooting when Credits are greater than Debits	Step 64
MM Numbering Structure	Step 75
SAP Document Numbering Structure	Step 76
Multiple Account Assignment	Step 42
Multiple Purchase Order Numbers on Invoice or Credit Memo	Step 41
You want to Change / Delete a Held or Parked document	Step 77
You want to display an existing Invoice document	Step 78
You want to Reverse an existing Invoice Document	Step 79

2. Start the transaction using the menu path or transaction code MIRO.

Enter Incoming Invoice: Company Code UNIV

3. Check the Transaction box has Invoice selected.

4. As required, complete the following fields:

• Transaction

• Invoice date

• Reference

• Amount

• Tax Amount

• Tax Code

• Calculate Tax

• Purchase order

• Text

5. Click on Enter

Invoice Verification

After selecting the Purchase order number and clicking on Enter

, SAP retrieves the purchase order and displays Header / Vendor information and Line item information.

6. Click on the

header tab.

Header Data - Basic Information

7. Most fields were completed earlier in the Basic Data Tab from the Transaction select the type of transaction to be completed. Click on

for a full list.

• Invoice - An initial invoice.

• Credit Memo - A FULL credit against a previously entered invoice.

• Subsequent Debit - An invoice to be entered after an invoice and credit have entered previously.

• Subsequent Credit - A credit received which is for individual items and not the full invoice entered previously.

8. As required, review the following fields:

• Paymt terms

• Baseline date

• Company code

9. Click on the

header tab.

Header Data - Payment Tab

10. As required, complete/review the following fields:

• Baseline Dt

• Pmnt terms

• Days

• Discount

• Pmnt meth.

• Pmnt meth.sup.

• Pmnt block

• Inv. Ref

11. Click on the

header tab.

Header Data - Details

12. As required, complete/review the following fields:

• Unpl. Del.csts

• Currency

• Doc Type

• Inv. Party

• Inv. recpt date

• Assignment

• G/L account

• Header texts

13. Click on the

header tab.

Header Details - Tax

14. As required, complete/review the following fields:

• Tax doc.currency

• Tax code

15. Click on

header tab.

Header Details - Amount Split

This tab is only used when the vendor comes under the Inland Revenue Construction Industry tax scheme. For further details on the use of this tab refer to step 66 .

16. Click on

header tab.

Click on

to move past the

message.

Header Details - Contacts

Displays contact details for individuals responsible for the various transactions.

17. Click on the

header tab.

Header Details - Note

Enter any relevant text here. Text entered here will appear on the vendor line entry. NB: If the remittance is to be sent via an internal department you must enter the relevant department in this field and prefix with a *. The first 7 digits will be printed on the remittance to ensure that Accounts Payable can recognize and forward it to the correct department.

It is possible to load a local file into the Note section. Text / Files from word can be imported into SAP using the

icon.

Vendor Information

Header Details - Vendor Information

Details from the Vendor Master record are shown in the Vendor Header section of the screen.

Example: Vendor master number 0000100020

Example: Vendor address details Guilbert Niceday LTD

It is possible to view the Vendor master record directly from this screen by selecting the detail icon

. For more detailed information on Vendor Master Record Display please see training documentation for Transaction XK03.

It is also possible to view the Display Vendor Line Items: Transaction FBL1N by selecting the list icon

. For more detailed information on Display Vendor Line items please see training documentation for Transaction FBL1N.

Line Item Section

Line Item Overview Section

This screen shows the line items on the purchase order number entered. The table shows particular details relevant to each individual item. The line items highlighted in yellow are those items which are eligible for invoices to post against them. If a line item is highlighted in yellow and does not appear on the invoice deselect it using the indent button on the left.

Use the drop down menu to select various display variants. Each will show relevant information regarding each individual line item.

Drop Down List

18. As required, complete/review the following fields:

• Item

• Amount

• S

• Quantity

• Un

• Invoice processed

• Purchase order

• PO

• Text

• Tax Code

• SU

• BR

• A

• Account Assignment

• Service

• G/L Account

• Business area

• Cost Centre

• WBS Element

• Order

There are numerous fields displayed on the ALL information variant and many are not relevant to UoL. Below are descriptions of the additional fields that may be of use.

19. As required, complete/review the following fields:

• Order Quantity

• Net Order Price

• Net Price

• Received

• Delivery date

• Created by

20. Click on Go Back

Invoice Verification

21. Check

. This means the Debits = Credits, the document balances and can now be posted.

Note the purchase order actually contains 2 line items but only one has any quantity goods receipted against therefore the invoice only relates to line item 1.

22. To post the invoice click on Save

23. The system will display the message "

The SAP Logistics Invoice Verification (61 series) document number must be entered on the top right hand corner of the invoice in GREEN ink.

Result

You have now posted the invoice on the vendor account.

Comments

This invoice is now on the vendor account awaiting payment - but it is blocked for payment. Invoices are released on the system for payment by Accounts Payable once the batch with the paper invoice is received and checked.

Delivery Costs

In SAP there are two types of delivery costs:

• Planned - These costs are known when the purchase order is raised and are added to the conditions of the purchase order.

• Unplanned - These costs are not known about when the order is raised and are only included on receipt of the invoice.

24. Follow the procedure for inputting an invoice, enter all the relevant Header information and the purchase order number and click on Enter

Invoice Verification - Planned Delivery Costs

Note the above balance is incorrect by �6.00.

25. To check to see if the purchase order contained planned delivery costs, select the drop down to select Goods / Services and Planned Delivery (as shown on the previous screen).

26. Click on Enter

Planned Delivery Costs - Item details

27. The planned delivery costs have now been included as invoice line items on the item overview section. The warning message Cancel

shows that a tax code must be entered against the freight line item before continuing.

28. Enter a tax code and click on Enter

. Then check the balance before trying to post the invoice.

29. The traffic light should give the green light

if all the information is correct therefore debits = credits and the invoice can now be posted.

30. Click on Save

Unplanned Delivery costs

• Unplanned - These costs are not known about when the order is raised and are only included on receipt of the invoice.

31. Follow the procedure for inputting an invoice. Enter all the relevant Header information and the purchase order number.

32. Click on Enter

33. To check to see if the purchase order contained planned delivery costs, select the drop down to select Goods / Services and Planned Delivery (as shown on the screen).

34. Click on Enter

Invoice Verification

If no freight charges were planned on the purchase order then no extra line items are entered onto the invoice.

35. Select the

Tab on the Header section and enter the NET delivery costs charged, in the Unpl. Del. Csts field.

36. Click on Enter

Details Tab

37. The traffic light should give the green light

if all the information is correct therefore debits = credits and the invoice can now be posted.

38. Click on Save

to post the invoice.

Early Payment Discounts

Many suppliers offer a cash discount if the invoice is settled in full within a certain timescales. It is extremely beneficial for the University to take advantage of these discounts wherever possible.

VAT rules state that Value Added Tax (VAT) should be calculated on the NET value of the invoice AFTER early payment discount has been deducted, even if this discount is not claimed. This means that the discount element of the invoice is zero rated for VAT purposes.

Example: Goods to the value of �100 would normally have �17.50 VAT added giving the gross amount as �117.50

BUT If 5% early payment discount was offered the VAT would be �16.63 calculated as follows:-

Net Value	VAT rate	VAT Charged
�95.00 @	17.5% =	�16.63
�5.00 @	0.00% =	� 0.00

Giving the gross amount of the invoice as �116.63. Then if the discount is claimed the University will pay �111.63 (�116.63 - �5.00 discount).

When entering the invoice in SAP the discount amount or percentage offered is entered in the Header details section under the Payment Tab. Note that the discount entered here will be deducted from the final payment to the supplier even if the terms of the discount are not met unless you follow the instructions detailed below.

Early Payment discount when discount terms can't be met. If early payment discount should not be claimed the document should be entered as though the discount will be taken. When the invoice is forwarded to Accounts Payable send a memo to Accounts Payable giving details of the invoice including the SAP 61 document number and details of the Cost Object(s) to be charged with the lost discount. The Accounts Payable manager will then edit the relevant payment proposal to ensure that the discount is not taken.

Early Payment Discount - Header details - Payment Tab

39. When entering an early payment discount change the Pmnt term to reflect the changes to the payment terms in order to be eligible for the discount.

40. Enter the discount amount into the discount field.

When receiving a discount ensure that the calculate Tax check box Checkbox Selected

is not selected on the Tax Tab - in order for manual entry of the Tax amount.

Multiple Purchase Order Numbers on Invoice or Credit Memo

This process is used when multiple Purchase Orders are quoted on an individual Invoice.

41. Enter the header information on the details tab as normal. When entering the Purchase Order number click on

this displays a multiple entry box

Reference to Purchase Orders

41.1 Enter the multiple order numbers quoted on the invoice click

and then

The multiple purchase order line items will now be displayed in the item overview table.

Multiple Account Assignment on an Invoice or Credit Memo

This process is used when line items on a purchase order are being paid for by more than one account number.

• The Purchase Order will have the account numbers already entered against the appropriate line item at Invoice Verification this account split must be verified.

42. When entering an invoice where the Purchase order line item has a multiple account the Invoice will not balance. This is due to the multiple accounts. Therefore select the Display variant "All Information" and find the Account Assignment column. Click on the Yellow arrow.

42.1 The following pop up screen will appear

Multiple Account Assignment for Item 000001 Computer

This shows the account information for the individual item.

42.2 Check the amounts split are reasonable and select

then

42.3 Process the remaining line items and post the invoice when completed.

Entering a Credit Memo

The following outlines the process for entering a credit memo in SAP.

• If you have an invoice on your desk that corresponds to the credit memo then follow process 1.

• If you DO NOT have an invoice on your desk for the credit memo then follow process 2.

Prerequisites

• A valid SAP purchase order.

• Goods receipt note against the relevant purchase order.

• An invoice against the relevant purchase order.

Menu Path

Use the following menu path to begin this transaction:

• Select go to the Invoice Verification screen.

Transaction Code

Process One

• If you have an invoice on your desk that corresponds to the credit memo then follow this process.

Basic Data Tab

Ensure Credit Memo is selected in the Transaction box.

43. Enter the relevant details into the Basic data tab.

• Document date

• Reference

• Amount

• Tax amount

• Tax Code

• Calculate Tax

• Purchase order

44. Once the relevant fields are completed, click on Enter

After selecting the purchase order number and clicking Enter

SAP retrieves the purchase order and displays Header, Vendor and line item information.

45. Click on the

tab.

Payment Tab

46. In the "Invoice Reference" field (Inv.ref) type the 61-document number from the original invoice document. When you next click on Enter

a warning message at the bottom of the screen is displayed "

Invoice Verification - Payment tab

47. You can now continue processing as normal.

Invoice Verification - Entering a Credit Memo

48. Check that the details on the screen relate to the credit memo being entered. Ensure that the correct line items are selected, the amounts and quantity are correct.

49. If all the details are correct and the credit balances, the status will show

. The credit note can now be posted by clicking on Save

50. The system will now give you a 61 document number for the credit note,

. Write the 61 document number in green ink on the top right hand side of the hardcopy credit note.

51. When batching your credit memo to send to Accounts Payable, please separate the credit notes and include in that batch the invoices to which the credit notes relate, where possible.

Result

You have completed 'how to enter a credit memo using process 1' and posted a credit on a vendor account.

Entering a Credit Process 2

Use this process when you DO NOT have the original invoice document on your desk.

Menu Path

Use the following menu path to begin this transaction:

• Select to go to the Invoice Verification screen.

Transaction Code

Invoice Verification

Ensure that the "Credit Memo" or "subsequent credit" transaction is selected in the Transaction box.

52. Enter the relevant details into the Basic data tab

• Invoice Date

• Reference

• Amount

• Tax amount

• Tax Code

• Calculate Tax

• Purchase Order

53. Once the relevant fields are completed, click on Enter

After selecting the purchase order number and clicking Enter

SAP retrieves the purchase order and displays Header, Vendor and line item information.

54. Click on

tab.

Payment Tab - Entering a Credit memo

55. In the "payment block" field (Pmnt block), click on the

button to access the dropdown list and select "Invoice Verification".

56. You can now continue processing the credit note.

Invoice Verification - Entering a Credit Memo

57. Check that the details on the screen relate to the credit memo being entered. Ensure that the correct line items are selected, the amounts and quantity are correct.

58. If all the details are correct and the credit balances, the status will show

59. Click on Save

to post the credit note.

60. The system will now give you a 61 document number for the credit note,

. Write the 61 document number in GREEN ink on the top right hand side of the hardcopy credit note.

61. When batching your credit memo to send to Accounts Payable, please separate the credit notes and include in that batch the invoices to which the credit notes relate, where possible.

Entering a Subsequent Debit / credit

Subsequent Debit - Use this transaction when an invoice is received after an invoice and credit have already been posted against the line items on the Purchase Order

Subsequent Credit - when a partial credit has been received and not a full credit memo.

62. When entering a Subsequent Debit or Credit the amount field will be blank (as the system cannot predict the value of the debit / credit) Enter the net amount of the debit / credit and highlight the line item and process the invoice / credit as normal.

Invoice Verification

Result

You have completed 'how to enter a credit memo using process 2' and have posted the credit on the Vendor account.

Check Balance Troubleshooting

Check Balance result shows debits are greater than credits.

63. Perform one of the following:

If	Then
Net (ex vat) value of the invoice has been input rather than the gross (inc vat).	Amend the amount entered against line item 1.
Transposition of figures when inputting	Check input and amend where necessary.
Unit cost charged on invoice is less than unit cost on purchase order	Forward query sheet to purchase order point for investigation.
Wrong goods receipt detail selected for matching against the invoice	Cancel input and try again.
Quantity invoiced less than quantity entered on goods receipt	* Check that the correct goods receipt line item(s) have been selected for matching. * Check that the unit of supply on the goods receipt and invoice correspond. * If the above checks prove correct send query form to purchase order point.
Delivery costs included on invoice not entered in SAP	Enter Unplanned delivery costs.
Early payment discount is shown on invoice but not included when input into SAP	If the early payment is to be claimed enter the detail on the "Payment" tab.
VAT calculated by SAP Different to VAT on suppliers Invoice	Deselect the Calculate Tax option and manually enter the VAT charged by the supplier in the Tax amount field

Check balance result shows credit greater than debits.

64. Perform one of the following:

If	Then
Incorrect VAT code used when raising the purchase order e.g. I0 (vat not charged) used instead of I2 (vat charged not reclaimable etc).	Compare the VAT code against the line item with the VAT code on the invoice. If the line item shows that the VAT is not charged then change the VAT code in the dropdown.
Transposition of figures when inputting	Check input and amend where necessary.
Unit cost charged on invoice is greater than unit cost on purchase order.	Forward the query sheet to the purchase order point for investigation.
Wrong goods receipt detail selected for matching against the invoice.	Cancel input and try again.
Quantity invoiced more than quantity entered on goods receipt.	* Check the correct goods receipt line item(s) have been selected for matching. * Check the unit of supply on the goods receipt and invoice correspond. * If the above checks prove correct send query to the purchase order point.
Check if Invoice is already entered under accounting document 51xxxxxxxxx	*Check that the invoice being entered is not a duplicate invoice by looking at the Purchase Order history for the Purchase Order or look at Vendor line items and search for the invoice reference.
VAT calculated by SAP Different to VAT on suppliers Invoice	Deselect the Calculate Tax option and manually enter the VAT charged by the supplier in the Tax amount field

Construction Tax

The Inland Revenue Construction Industry Scheme applies to vendors used primarily by Estate Services. To distinguish these vendors from regular vendors the vendor number will start with a '6'. If you are using a vendor whose number begins with a '6' then you should refer to Estate Services. For further information contact Alan Vaughan in Estate Services on 5932.

In some instances you may require the services of one of these vendors where the work is not subject to construction industry tax, in these cases follow steps 65 to 69

If you are using a vendor for services that are subject to construction industry tax, then you should consult with Estate Services in the first instance. To enter an invoice that is subject to construction industry tax, follow steps 70 to 74

• CIS4. CIS4 holders are required to show their net charge split between labour and other elements and should have tax deducted at the rate of income tax, but only on the labour element of included activities excluding VAT therefore care should be taken to ensure the correct amount is entered in the W.tax base field. Warning: if the W.tax base field is left blank SAP assumes the whole invoice is subject to tax resulting in a reduced payment being made to the vendor.

• CIS5 and 6. Tax is not deducted from CIS5 and 6 holders and the requirement is to report gross payments to the Inland Revenue including labour and materials, hence, there is no need to specify the labour element separately. Note: The CIS5 and 6 certificates have an expiry date, which is input on the master record. If the certificate has expired when entering an invoice you will get an error message which will not allow you to post the invoice until a valid certificate date has been entered in the master record.

65. When using a vendor which would normally be subject to construction industry tax but, for this particular invoice they are not, enter the header details and purchase order number for the invoice as per usual.

66. Click on the

tab in the header details section of the MIRO screen. You will see the following screen:

Invoice Verification

67. As required, complete/review the following fields:

• W/tax exempt

Warning: If the W.tax b/at and W/tax exempt fields are left blank SAP assumes the whole invoice is subject to tax.

If the whole invoice is exempt from VAT, enter the gross amount in the W/tax exempt field.

If part of the invoice is subject to withholding tax, enter the NET amount of the labour element in the W.tax b/at field.

Doing nothing will result in SAP deducting income tax from the whole invoice.

68. Click on Save

to save the invoice once you are happy that all information is correct. You will see the following message:

Invoice Verification

69. Click on

to move past this message. The system will display the invoice document number at the bottom of the screen. You have now saved the invoice.

70. When using a vendor who is subject to construction industry tax, follow these steps: Enter the header details and purchase order number for the invoice as per usual.

71. Click on the

tab in the header details section.

Amount split tab

72. As required, complete/review the following fields:

• Amount

• Pmnt...

• Pmnt t...

• W/tax i...

• W/tax b/at

• W/tax exempt

W/tax b/at and W/tax exempt fields. If both of these fields are left blank for CIS5 and CIS6 vendors the system will report on the whole value of the invoice, or in the case of CIS4 it will deduct tax from the whole value of the invoice resulting in reduced payment to the supplier.

73. Click on Save

to save the invoice once you are happy that all information is correct. The following message appears.

Invoice Verification

74. Click on

to move past this message. The system will display the invoice document number at the bottom of the screen. You have now saved the invoice.

MM Numbering Structure

75. As required, review the following information:

• Vendor Accounts

Numbering Range	Description
100000 - 199999	External Traders
300000 - 399999	Factoring Companies
400000 - 499999	External Expenses
500000 - 599999	Staff & Student Payments
899990 - 899999	One time vendors - Student refunds
900000 - 909999	External Vendor Ordering Address
999999	Internal Market vendor
2 Digit alpha codes	Internal Ordering Address

SAP Document Numbering Structure

76. As required, review the information:

Activity	Notes
1000000 - 1999999	Purchase Requisition document
4500000000 - 4599999999	Purchase order document
5000000 - 5999999	Goods Receipt document
61000000 - 61999999	Logistics Invoice Verification document
1900000000 - 199999999	Invoice document (Accounts Payable)
1700000000 - 179999999	Accounts Payable Credit / Reversal
2000000000 - 299999999	Payment / clearing document

Change / Delete Invoice Documents

77. The following procedure is used only to amend / change or delete an existing Held or Parked documents.

77.1 Select the

to list the documents that can be changed or deleted. The documents are listed into three categories - Held Documents, Parked Documents and Docs complete for posting, as shown by the screen below.

Alternatively, use the button

and enter the document number and the year.

Enter Incoming Invoice: Company Code UNIV

77.2 Double click the document to select it and make the desired changes.

Only Parked or Held documents can be Changed or Deleted.

Edit Held Invoice Document 6100215585 2004

77.3 To Post the document follow the Menu path

77.4 To delete the Parked or Held Document, follow the Menu Path

Display an Invoice document.

Invoice Documents are Invoices, credit Notes, Subsequent Invoices and Subsequent Credit notes. Follow the procedure below to display an invoice.

78. To display an Invoice or Credit Document, select the icon

Enter Incoming Invoice: Company Code UNIV

78.1 Enter the Invoice Doc. Number and the Fiscal year and click on

Reverse an Invoice Document

Follow the below procedure to reverse an existing Invoice document. Invoice documents represent - Invoices, Credit Notes and Subsequent Documents.

79. To Reverse an existing Invoice document, click on

and enter the Invoice Doc. Number and the fiscal year. Follow the menu path

Transaction MR8M can also be used to Cancel or Reverse an existing invoice document.

Result

You have completed transactions within MIRO.

Comments

In SAP R/4 Enterprise 4.7, the MIRO functionality has been considerably enhanced. SAP R/3 4.6B transactions such as MR2M, MR3M and MR5M no longer exist and have been incorporated within MIRO.