Introduction
The document has been prepared from the front end perspective of SAP. The purpose of the blog is to solve the confusing situation of the business process where goods are received (MIGO) without the invoice. Also, where invoices are issued in advance (MIRO) before the goods were received. When MIGO occurs, document (WE) is recorded whereas in the case of MIRO, (RE) is recorded.
The accounting treatment of WE is of an asset, whereas for RE is of liability. Both the document types are cleared against each other and when respective WE does not meet with RE or vice versa, liability remains outstanding and asset remains outstated. The balances are then transferred to GR/IR clearing account but over there segregation of WE and RE is not possible. Therefore, in order to categorise it, we need to analyse it.
Step by Step Instructions
2. Enter the G/L account number in the respective field.
3. I have entered the range of all the GR/IR accounts present in the chart of account to check the open items on the key date.
4. Afterwards, see all the open items along with the balances.
5. These are the items which will be cleared against the issued invoices (RE) via automatic clearing (F.13)
6. Enter the parameters for automatic clearing. Mention the respective G/L to clear it alongwith the GR/IR check.
7. Execute it in the test run to look for any errors. It will show the detailed list of open and cleared items.
8. Then run F.13 without test run and see the same results.
Now, comes the time to Analyze GR/IR Clearing Accounts and Display Acquisition Tax. Execute F.19.
9. Enter the parameters and perform postings.
10. Perform the postings through batch input session.
11. The results will be displayed here. Check and then proceed. Only those GR and IR will be displayed here which do not have corresponding document type posted against each other.
12. Go to SM35 and process the batch input session.
13. After selecting the session, process it.
Any errors will be displayed here if any.
14. After the run, document will be generated by the system which can be viewed in FB03.
15. Check the relevant entries.
The entire balance will be transferred and reversed on the next day. GR/IR not yet invoiced account will be debited and GR/IR adjustment account will be credited.
Conclusion
To practice, knowledge of accounting principles and treatments is essential. The open invoices and the goods received document recorded stand alone will be classified according to its nature of account. The functionality of system will assist the user in the way that it will be matched automatically, the user won't have to find it manually. The tiresome job will be avoided.
Do let me know how useful you have found the blog in the comments below.
The document has been prepared from the front end perspective of SAP. The purpose of the blog is to solve the confusing situation of the business process where goods are received (MIGO) without the invoice. Also, where invoices are issued in advance (MIRO) before the goods were received. When MIGO occurs, document (WE) is recorded whereas in the case of MIRO, (RE) is recorded.
The accounting treatment of WE is of an asset, whereas for RE is of liability. Both the document types are cleared against each other and when respective WE does not meet with RE or vice versa, liability remains outstanding and asset remains outstated. The balances are then transferred to GR/IR clearing account but over there segregation of WE and RE is not possible. Therefore, in order to categorise it, we need to analyse it.
Step by Step Instructions
- The first step is to view the G/L Line Item Display - FBL3N or FAGLL03.
2. Enter the G/L account number in the respective field.
3. I have entered the range of all the GR/IR accounts present in the chart of account to check the open items on the key date.
4. Afterwards, see all the open items along with the balances.
5. These are the items which will be cleared against the issued invoices (RE) via automatic clearing (F.13)
6. Enter the parameters for automatic clearing. Mention the respective G/L to clear it alongwith the GR/IR check.
7. Execute it in the test run to look for any errors. It will show the detailed list of open and cleared items.
8. Then run F.13 without test run and see the same results.
Now, comes the time to Analyze GR/IR Clearing Accounts and Display Acquisition Tax. Execute F.19.
9. Enter the parameters and perform postings.
10. Perform the postings through batch input session.
11. The results will be displayed here. Check and then proceed. Only those GR and IR will be displayed here which do not have corresponding document type posted against each other.
12. Go to SM35 and process the batch input session.
13. After selecting the session, process it.
Any errors will be displayed here if any.
14. After the run, document will be generated by the system which can be viewed in FB03.
15. Check the relevant entries.
The entire balance will be transferred and reversed on the next day. GR/IR not yet invoiced account will be debited and GR/IR adjustment account will be credited.
Conclusion
To practice, knowledge of accounting principles and treatments is essential. The open invoices and the goods received document recorded stand alone will be classified according to its nature of account. The functionality of system will assist the user in the way that it will be matched automatically, the user won't have to find it manually. The tiresome job will be avoided.
Do let me know how useful you have found the blog in the comments below.
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