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Introduction:

What we want to do today is give a basic review of the MR11 and point out reasons why this transaction can be very helpful to you in monitoring your Purchase Orders.  For instance:
-      How are you going to know when invoices have been entered against your GR's?
-      How will you know if an invoice has been entered BEFORE you have done the GR?
-      I might mention at this point that this situation will become more common.  With the pressure the offices are under to get their invoices in for payment, they are not going to have time to contact you on an individual basis asking you to verify delivery of a good/service and do the GR so they can do the invoice.
-      Is there a way that you can get a quick overview of how your entire agency's PO's look at one time?
This is where the MR11 transaction comes in quite handy.

MR11

 

Overview

NOTE

  1. For inventory Purchase Orders, please see additional instructions at the end of this document. 
  2. The MR11 transaction deals with quantity issues.  It's the quantity of GR's and IR's that drive this transaction.  Both Valuated and Non-Valuated PO's are included in the reports.

 Trigger:
 1.    You've to find out number of your blocked invoices is getting pretty high, and the suggested reason has to do with GR issues: 
You need a report that will list all of your PO's and show the total number of GR's entered compared to the number of IR's entered.
q  If the goods/services have been received and a GR was entered but no invoice has been processed yet, you will see it in the report generated by MR11.
o    This is particularly important when the GR entered is very old.  We are at the fiscal year closing.  By running this transaction looking specifically for this situation, if there are any, you will see them in your report.
q  If an invoice has been entered against one of your PO's before you had time to get the good/service verified and the GR entered, you will see it in the report generated by MR11.
o    This is particularly important when the IR entered is very old.  We are at the fiscal year closing.  By running this transaction looking specifically for this situation, if there are any, you will see them in your report.
q  If a PO has an unusually large discrepancy between the total GR's and IR's, you will see this while reviewing the MR11.
2.    A discrepancy (quantity) occurred between Goods Receipt (GR) and Invoice Receipt (IR). MR11 deals with quantity differences, not dollars.
This needs to be cleared. Examples of situations where this occurs are:
q  If the goods have been received, the vendor hasn't invoiced for the goods and won't be invoicing (the vendor has gone out of business). Use MR11
o    Remember the GR/IR account is a clearing account allowing you to post an expense when you receive a good/service.  Paying for that good/service offsets the GR.  If the vendor doesn't invoice, that GR will never go away.  Of course, we get the free goods!!
q  An invoice with reference to a Purchase Order was paid through accounts payable FI (as a direct) instead of procurement. Use MR11
q  The goods were received and sent back to the vendor for poor quality. The vendor was accidentally paid and we will not be reimbursed due to bankruptcy of the vendor.  Use MR11
Please Note:  These are examples of the kinds of situations and it is not necessary that same screen shots are available in the document that may require the use of MR11 to make a correction to the PO.  This should only be done after other options for correcting PO issues have proven unsuccessful.  Using this transaction should only be done at the request of IES & Comptrollers'.
q  Quantity ordered = 100 ea. at a unit price of $1.00, receive quantity of 97 ea. at a unit price of $1.00.  If the remaining balance of 3 ea. will not be shipped, purchaser needs to reduce the open quantity on the purchase order to reflect the actual amount received.  DO NOT Use MR11
 o    The point here is that the PO should reflect the activity of what happened as closely as possible. At 97, for all practical purposes, the PO has been completely satisfied.
o    By reducing the line item to 97 total, a GR for the last 3 items can not be accidentally done.
o    Reducing the line item to 97 leave a good audit trail for any audits that may be done at a later date.
Maintenance of the GR/IR Clearing account should be done regularly. It's recommended to be done weekly for both IR surplus and GR surplus. Run IR surplus with movement up to today. For GR (delivery) surplus, run maintenance with movement one or two months old.
NOTE:  During the normal business flow of the documents, 99% of your Purchase Orders will show up on the GR/IR at some time and should NOT be cleared. Nothing should be done to them through MR11.  When the normal business process is completed, the document will no longer have a discrepancy between the GR and IR, and will not be on the list when you run MR11.

Business Process Procedure Overview

. The Goods Receipt/Invoice Receipt clearing account has a discrepancy for either price or quantity.  The result is an entry in GR/IR account.  This procedure details how to clear outstanding entries in the GR/IR account.

Procedure Steps

1.1.       Access transaction by:

Via Menus

Logistics>Materials Management>Logistics Invoice Verification>GR/IR Account Maintenance>Maintain GR/IR Clearing Account

Via Transaction Code

MR11

The screen "Maintain GR/IR Clearing Account" will display.

See screen shot below.
If any corrective action is taken, this will be the posting date.

Always uncheck
 Note that you can generate this report for either GR surplus or IR surplus, or BOTH.

1.2.       On screen "Maintain GR/IR Clearing Account", ONLY enter information in the BOLDED fields as specified in the table below:

Field Name

Description
R/O/C
User Action and Values
Comments

Company Code

TWC1

R

Defaults

 

Posting Date

Date which is used when entering the document in Financial Accounting or Controlling

R

Defaults to 'Today's date'
- Leave as is

 

Reference

An example would be vendor's own invoice number

O

Enter Reference - something that will help define in a search

 

Doc. Header text

Text pertaining to the document as a whole

O

Enter text - information that would be helpful as in an audit trail

 

Doc. Header text

Text pertaining to the document as a whole

O

Enter text - information that would be helpful as in an audit trail

 

Vendor

Vendor number

O

Enter Vendor number

Can search on a range

Freight vendor

Vendor who delivered goods

O

N/A

 

Purch. Organization

Purchasing organization number

R

Enter purchasing organization number

Can search on a range -

Purchasing Group

Purchasing Group number

O*

Enter Purchasing Group or use match code

Can search on a range -*Depending on Business area running GR/IR for, may want to fill in one or the other.

Plant

Plant number

O*

Enter Plant number

Can search on a range - *Depending on Business area running GR/IR for, may want to fill in one or the other.

Purchasing Document

Purchase Order number

O

Enter PO number

Can search on a range

Item

A number that uniquely identifies an item on a Purchasing document

O

Enter Item number

Can search on a range

Purchase Order date

Date purchasing document was created

O

Recommend enter the dates to cover the entire fiscal year. OR Enter date document was created if using to limit search

Can search on a range

Purch. Doc. Category

Identifier allowing differentiation between types purchasing documents

O

Leave blank

 

Order type

Identifier allowing differentiation between the types of PO's

O

Enter PO type or Leave blank and analyze all PO's

Recommend Leave blank and analyze all PO's

Delivery Surplus

Indicator used to select purchase orders with a delivered quantity that exceeds the invoiced quantity.

R

Select either 'Delivery Surplus' or 'Invoice Surplus' or both entries.

Otherwise known as GR surplus

Invoice Surplus

Selection of all purchase orders with an invoiced quantity, which is larger than the quantity delivered.

R

Select either 'Delivery Surplus' or 'Invoice Surplus' or both entries

 

GR/IR clearing account

Indicator used to select purchase order items in which a quantity differences still exist between the goods receipt and invoice receipt postings

O

Set indicator to select

 

Delivery cost accounts

Indicator used to select purchase order items in which a quantity differences for planned delivery costs (freight) still exist between the goods receipt and invoice receipt postings

O

Set indicator to select

 

ERS purchase orders

Indicator used to settle with regard to PO or scheduling agreement items involving this vendor using Evaluated Receipt Settlement (ERS)

O

DO NOT Select this indicator
Don't run MR11 on the Correctional Industries PO's - This will cause problems with the ERS process

ERS is being used on all PO's used to buy from Correctional Industries

Last movement before key date

Date where the last goods movement was before date

R

Defaults to today's date

 

Qty var. less than/equal to

The difference between the quantity delivered and quantity invoiced

O***

It's recommended to keep this field blank. Enter the percentage amount difference to be used for selection criteria - * select either quantity variance or value variance

 

Value variance less than/=to

Value variance between goods receipt value and invoice receipt value

O***

It's recommended to keep this field blank. Enter the value variance to be used for selection criteria - * select either quantity variance or value variance

 

Automatic clearance

Set indicator to automatically clear accounts

O

NEVER run with the option selected

Never automatically clear - prepare a list and review before clearing

Prepare list

Set indicator to prepare a list of accounts balances available for clearing

O

Set indicator to select

Prepare a list and review before clearing

Layout

Determines the list format

O

N/A

 

(Note:  On above table, in column "R/O/C"; "R" = Required, "O" = Optional, "C" = Conditional)
NOTE: The table above gives detail information on every field available to use in the criteria for selection of the transaction MR11. The bolded fields are the recommended minimum information to be entered to run a listing of the PO's that affect the GR/IR.
If needed due to volume, you may enter additional criteria to limit the selection.

1.2.1.  After entering information, click on the execute (F8) button, as shown below.

Lists of purchasing documents, which meet criteria selected and have GR/IR account balances will be displayed, as shown below.
  
 

From the screen "'Maintain GR/IR Clearing Account" that has the List of Purchase Order Items' you should view the Purchase Order before clearing the GR/IR account. Select the Purchase Order, and click on the View Purchase Order button as shown above.

The Purchase Order will be displayed, as shown below

    

1.3.       If the outstanding GR/IR will never occur, the document should be cleared. To post a clearing, On screen "Maintain GR/IR Clearing Account" that has the List of Purchase Order Items', select the line item(s) to be cleared and click on the Post button to Post Clearing.

1.4.       When clearing posts, on screen "Maintain GR/IR Clearing Account", a log will be created detailing the GR/IR clearing account posting and a document number will be issued. As shown below.

    
Instructions for Inventory Purchase Orders:
When clearing out your inventory purchase order via MR11, additional steps need to occur to keep the moving average price correct in SAP.

  1. Run transaction MR11 to obtain listing of all Purchase Orders having open GR/IR.
  2. Research listing of Purchase Orders and verify GR/IR needs cleared out.
  3. Identify the Inventory Purchase Orders (account assignment is blank).
  4. Clear the Purchase Order through transaction MR11 - maintain GR/IR clearing                                    account (directions above).  A log will be created displaying a GR/IR Clearing Account document number for each Purchase Order.
  5. Retain the clearing account document number for the Inventory Purchase Orders cleared through MR11 and forward the clearing document number to Barbara.
  6. IPA will perform revaluation of the material's moving average price.
  7. Completion of these steps will clear the Purchase Orders through GR/IR,

      Maintain proper account assignments, and correct the moving average price.


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1 Comment

  1. Thanks for sharing the tips on how to use this transaction!