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MIRO Process (Invoice Verification) in SAP MM

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385 views2 pages

MIRO Process (Invoice Verification) in SAP MM

Uploaded by

praful
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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MIRO Process (Invoice Verification) in SAP MM

1. Overview of MIRO Process


The MIRO (Material Invoice Receipt) process in SAP MM is used to verify and post
vendor invoices against goods receipt (GR) and purchase order (PO) entries. It is
a key component of the procurement and payment process in SAP, ensuring that
the organization only pays for goods and services that have been received and
meet the terms of the purchase order.
When a vendor sends an invoice, it is compared to the goods receipt and
purchase order to ensure the amounts and quantities match. If discrepancies are
found, they are handled before the invoice is posted.

Steps in the MIRO Process


1. Prerequisites for MIRO
o A Purchase Order (PO) must be created for the procurement of
goods or services.
o The Goods Receipt (GR) for the PO should be posted before
processing the invoice (except in cases of service procurement).
o The Vendor Invoice should be received from the supplier, and it
must reference the correct PO and GR.
2. MIRO Transaction Overview
o Transaction Code: MIRO (Enter Incoming Invoice)

o Invoice Verification: This is the process of checking that the


invoiced amount matches the PO and GR before the invoice can be
posted.

MIRO Process Flow


Step 1: Access MIRO (Invoice Verification)
1. Transaction Code: MIRO
2. In the MIRO screen, enter the Invoice Type (such as Invoice for regular
invoices, or Credit Memo for returns).
3. Enter the Vendor Number and the Invoice Date as received from the
vendor.
4. Enter the Invoice Amount, which may differ from the original PO amount
if there are price adjustments or other factors.
Step 2: Invoice Data Entry
1. Reference PO Number: The Purchase Order number should be
entered, which is the basis for the invoice verification.

Classification: Internal
o The system will automatically fetch the relevant data from the PO,
such as materials, quantities, and agreed prices.
2. Invoice Amount: Enter the invoice amount as per the vendor's invoice.
This may vary from the original PO if there are price adjustments,
discounts, or other agreements with the vendor.
3. Check Invoice Items: The system will display the PO items along with
their quantities and prices. Verify that the invoice corresponds to the
quantities and prices of the received goods (GR).
Step 3: Verify Goods Receipt (GR) and PO Information
1. Goods Receipt (GR) Match: The system will automatically check if a
Goods Receipt (GR) has been posted for the corresponding PO items.
The quantities received will be compared to the quantities invoiced.
o If the quantities match, the system will allow the invoice to be
posted.
o If there are discrepancies in quantity or value, the user may need to
resolve them, either by adjusting the invoice or handling the
discrepancy through communication with the vendor.
2. Price and Quantity Verification: Ensure that the price, taxes, and
discount terms are correct. If there are any changes in pricing (e.g.,
negotiated discounts), these should be reflected in the invoice.
Step 4: Post the Invoice
 After verifying the details, click on Post to officially post the invoice. The
system will create the accounting entries automatically:
o Debit to Inventory/Expense Account: The value of the goods or
services received is posted as a debit in the relevant inventory or
expense account.
o Credit to Accounts Payable: The accounts payable is credited,
representing the liability towards the vendor.
Step 5: Handling Discrepancies (If Any)
1. Invoice Block: If there are discrepancies between the GR and the invoice,
the system can block the invoice from being posted.
o The most common reasons for a block include mismatched
quantities or prices, or missing GR entries.
o You can resolve the discrepancy by contacting the vendor or
correcting the PO or GR.
2. Invoice Verification with Partial Payment: If only a portion of the
goods or services has been delivered, or if the invoice value differs from
the PO, you can post a partial invoice or payment. The system will handle
partial receipts accordingly.

Classification: Internal

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