Invoices with Different Payee

 An invoice has a different payee if the invoice payment is not to be credited to the invoicing party specified in the purchase order. In the SAP System, this procedure is controlled in two ways:

Ø  The different payee is already taken into account when the invoice is posted.

The invoice is posted to the vendor account for the different invoicing party. The payment program then accesses this account. A vendor master record must have been maintained for the different invoicing party.

Ø  The different payee is only taken into account when the payment program runs.

The invoice is posted to the account of the vendor with whom the purchase order was placed. The payment program then makes the posting from this vendor to the bank account of the different payee. In this case, we do not have to create a vendor master record for the different payee.

Posting to the Different Payee’s Account

To post an invoice to the account of an invoicing party different to the one specified in the purchase order, proceed as follows:

Automatic replacement of the vendor, for example, replacing a branch office with the head office

To post an invoice to a head office account:

Ø  A vendor master record must have been created for the head office

Ø  The head office must be entered on the Accounting information view in the vendor master record of the invoicing party specified in the purchase order.

If a head office is maintained in the vendor master record, the account number of the branch is displayed in the header data after you create and allocate the invoice. The payment program uses the vendor for the head office and the branch office, in this case it makes the posting to the head office account.

Manual replacement when entering an invoice

If we have to post an invoice to a vendor account different to the one specified in the purchase order, we enter the Different invoicing party on the Details tab page in the invoice header and choose  to confirm our entries. The system adopts the different invoicing party in the Vendor data . In the Allocation screen area, enter the document number to which the invoice refers.

If there is no indication in the invoice that the invoicing party is different to the one specified in the purchase order, we only enter the document number in the Allocation screen area. In the Vendor data , the system adopts the invoicing party specified in the purchase order. If we subsequently want to change the invoicing party, we enter the Different invoicing party in the Header and  choose  . The system copies the last-used invoicing party.

Note: Note that when entering a different invoicing party, the terms of payment from the underlying purchase order item are valid.

Posting to the Account of the Vendor in the Purchase Order

If we want to post an invoice to the account of the vendor in the purchase order, but the payment is intended for a third party, you enter the allowed payee on the Payment transactions view in the vendor master record.

To do this, select the Individual spec. field in the Different payee in document frame and choose Allowed payee .

Fiori APP ID MR11 - Clear GR/IR Clearing Account

 MR11 app we can clear the goods receipt and invoice receipt clearing account.

 If quantity differences exist between goods receipt and invoice receipt for a purchase order, then a balance results on the goods receipt and invoice receipt (GR/IR) clearing account.

If the quantity invoiced is larger than the quantity received, the system expects further goods receipts for this purchase order to clear the balance.

If the quantity received is larger than the quantity invoiced, the system expects further invoices for this purchase order to clear the balance.

we can also clear differences for delivery costs.

Key Features

Ø  Select the transactions for which we want to post the differences.

Ø  Clear the balance manually, if no more goods or invoices are to be received. This can be done in different ways:

Ø  We can cancel the invoice and post a corrected invoice or a credit memo for the surplus posted quantity.

Ø  We can clear the GR/IR clearing account manually.

Ø  Maintain GR/IR Account Movements: The offsetting entry to clear the GR/IR account is the same as the posting made when we enter an invoice for a purchase order.

Ø  Material with Moving Average Price (MAP)

The GR/IR account is cleared against the stock account, unless no stock coverage exists. If the material stock is smaller than the quantity to be cleared, only the actual stock quantity is debited or credited proportionally. The remaining amount is posted to a price difference account.

Ø  Material with Standard Price

The offsetting entry is posted to a price difference account.

Ø  Purchase Orders Assigned to an Account

The offsetting entry is made to the cost or fixed asset account shown in the account assignments in the purchase order.

Integration of Transportation Management

The integration of Transportation Management enables us to use the reference document category Freight Order in the supplier invoice. A freight order refers to a purchase order with lean service items. we can select the Transportation Management indicator in the Origin section.

For the Purchasing Document field, we can select the search view Service Purchasing Documents per Freight Order. This search view contains specific fields, for example, Supplier, Source Location, Destination Location, Departure Date, Arrival Date, and Freight Order.

On the hit list, we can choose Change Layout and then select specific columns, for example Source Location.

How to maintain the GR/IR Clearing Account

The GR/IR clearing account is usually cleared at the end of a period or fiscal year for those order items that no further goods receipts or invoices are expected for.

1.    Choose various selection criteria for the transactions for which we want to post the differences.

2.    Choose Execute.

3.    On the selection screen, the individual purchase order items that have quantity variances are displayed.

4.    Select the order items that we want to clear.

5.    Clear the GR/IR clearing account for the selected purchase orders by choosing Post.

Stock Types supported in S/4 HANA

  

                       Stock type is the term used in SAP to designate the disposition or usability of the stock for materials planning and execution purposes.

 

There are 4 main stock types supported in SAP S/4HANA:

 

1.    Unrestricted use stock

2.    Quality inspection stock

3.    Blocked stock

4.    Customer returns stock

 

Unrestricted Use Stock:

                 The unrestricted use stock type is used to designate inventory quantities that are free to be considered for materials planning or execution purposes, such as deliveries to customers or consumption for production. Unrestricted use stocks can be freely transferred between plants and storage locations.

 

Quality Inspection Stock:

                The quality inspection (QI) stock type is used for identifying quantities of goods that are undergoing processing by the quality department at the current time. QI stocks are considered available from a materials planning point of view. However, these stocks can't be shipped to a customer or consumed internally until a decision has been made about their usability.

 

Ø  The QI stock can be transferred between storage locations in a plant but can't be transferred between plants.

 

Ø  QI stocks may be under the control of the Quality Management (QM) module.

Ø  If QM is active for that material in that plant, then Quality Management processes control the postings of material into and out of the QI stock type.

 

Ø  If QM isn't active for that material in that plant, then transfer postings are used to post stocks out of QI stock into unrestricted use stock.

 

Blocked Stock:

                   The blocked stock type is used when a material becomes unusable for planning and execution purposes. Blocked stocks generally aren't considered during materials planning.

 

Ø  Blocked stocks can't be used for fulfilling customer or production demands.

Ø  Blocked stocks can be transferred between storage locations within a plant.

 

Ø  Note that unrestricted use, quality inspection, and blocked stocks are considered valuated stocks if the stock type assigned to the material is valuated in the valuation area assigned to the plant.

 

Customer Returns Stock:

                           The customer returns stock type is a less commonly used stock type. It can be used to manage goods that have been delivered back into a storage location from a customer when a decision hasn't been made as to whether the goods will be accepted back into stock.

 

Ø  Customer returns stock is always non valuated stock.

Ø  Once a decision is made to accept the goods, a transfer posting from customer returns to either unrestricted use, quality inspection, or blocked stock is made. This transfer posting posts the quantities into valuated stock and creates an accounting document.

Special Stocks & Ownership:

 In SAP S/4HANA system are owned by the enterprise and are reflected in the appropriate stock accounts in Financial Accounting.

However, it's possible to represent stocks that are owned by an external party in the system.

Special stock indicators are used to represent these ownership scenarios in Inventory Management.

 

Each special stock has a unique one-letter identifier in the database.

 

The following are examples of special stocks that are owned by the enterprise and

physically stored at an external location:

 Ø  Component stocks provided to supplier for subcontracting (special stock 0)

 Ø  Finished goods consigned to a customer (special stock W)

  Ø  Returnable transport packaging at customer (special stock V)

Note that these special stocks can be in either unrestricted use or quality inspection stock types.

 The following are examples of special stocks owned by an external party and physically stored in a plant and storage location:

 Ø  Supplier consignment stock (special stock K)

Ø    Supplier-owned returnable transport packaging (special stock M)

S/4 HANA Fiori Apps for Analysis and Reports | Sourcing and Procurement (MM)

Here I am providing some blogposts links from different authors for the Fiori Apps information for Reporting/Analysis in the area of Inventory Management.

• • List with 16 SAP S/4 HANA Fiori Apps for Analysis and Reports | Sourcing and Procurement (MM)
  • List with 9 SAP S/4 HANA Fiori Apps for Analysis and Reports | INVENTORY (MM)

S/4 HANA Major changes in PTP Area

 S/4 HANA Major changes in MM Area 

Material Master :

• The first change is material master field length earlier it was 18 character in ECC now it has changed to 40 characters in S/4HANA.
• However, it is switched off by default. The length of the material is 40 character meaning technically material length take on to 40 characters but by default, it is not set to 40 characters.
• But when we use interface to communicate like sales order, purchase order using IDOC or any other mechanism. SAP is still using old 18-character material length. That is because BAPI and all the system that is built and place are basically with 18 characters. For a functional consultant, the definition of material is 40 character but when it comes to interface, the external system does not know what is the definition of material.

Vendor Master

• Vendor Master Transactions : In S/4 HANA we maintain Business Partner through the  SAP Fiori app. Transactions related to Vendor Master transactions like XK01, XK03, MK01, FK01 are made obsolete in S/4 HANA
• Customer vs. vendor to Business Partner. SAP ECC maintains separate customer and vendor files, even in those cases where an organization partners with a company for both functions. S/4HANA combines common data structure elements into a Business Partner record.

Tables:

Inventory management is reduced from 26+ tables to a single table, MATDOC (Material Document line item).

In S/4HANA pricing table “KONV” is replaced by a new table “PRCD_ELEMENTS”.

MATDOC table now contains both header and item data for material documents. Hybrid tables (e.g. MARC, MARD, etc.) still exist, but they only hold master data information. All stock information displayed during a select on those tables is calculated on the fly. The MATDOC_EXTRACT table is used to speed up the summarization of MATDOC table during the on-the-fly calculation of stock figures:

Major Changes in Transactions:

• Restructuring of transactions - Few transactions are made obsolete such as MB01, MB02...MB05, MB0A, MB11, 1A....MBSU. They have been replaced by Fiori apps for the better user experience and improved performance and less load on data bases.
• We Can use MIGO for Goods Movements.
  

MRP:

MRP in ECC is run through batch jobs and during off peak hours. However, there is no need of batch job in S4H and MRP can now be run in real time with HANA.

MRP can be run on plant and MRP area level, but not on storage location level.

In ECC , Storage location can either be excluded from MRP or planned separately . SAP recommends to use MRP area  with MRP type (ND in case of exclusion or VB for re-order point planning) for those scenarios at storage location level. MRP with subcontracting has also been simplified.

Output management:

ECC message determination through table NAST is replaced by Business rule framework plus (BRF +) and target architecture is based on Adobe document server and Adobe forms only.

 

LSMW / LTMC:

LTMC is a newer version/ enhanced version of LSMW

• LSMW – Legacy System Migration workbench
• LTMC – Landscape Transformation Migration Cockpit

For the Master/Transactional data transformation, we used to use LSMW from legacy systems like ECC, any other ERP or tally, whatever data like a cost center, profit center, bank, G/L account, BP.

When we have more data, we cannot do this one by one manually– so we use a tool like LSMW in past.

And now we have an enhanced version called LTMC.

LSMW Vs LTMC: