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Evaluated Receipt Settlement (ERS)

Procedure for settling goods receipts automatically. When you use Evaluated Receipt Settlement (ERS), you have an agreement with the vendor that they do not create an invoice for an ordering transaction. Instead, the system posts the invoice document automatically on the basis of the data in the purchase order and goods receipts. We recommend that you only implement ERS when you and your vendor have a clear agreement on the conditions used and you regularly update the purchase orders in the system. The system determines the invoice amount for this ordering transaction from the prices entered in the order, the terms of payment, the tax information and the delivery quantity entered in the goods receipt.

You can settle goods receipts directly without receiving an invoice from the vendor. The system can generate the corresponding invoices and post them. A vendor invoice is no longer required. Advantages: Purchasing transactions are closed more quickly. Communication errors are avoided. There are no price and quantity variances in Invoice Verification.

Disadvantages: Planned delivery costs cannot be processed using ERS. Transaction is based on the conditions maintained in PO & GR data Data cannot be edited during ERS transaction. Transaction is posted in the background based on the PO terms & conditions, tax code etc.

Evaluated receipt settlement must be flagged in the purchase order item. The vendor must be flagged as being subject to ERS in the vendor master record. The goods receipt must refer to a purchase order. Goods-receipt-based Invoice Verification must be defined for the purchase order item. A tax code must have been maintained in the purchase order item. The order price of the materials may not be an estimated price.

Process Flow
Evaluated Receipt Settlement is carried out as follows: 1. Select transactions that can be settled a. You define which transactions the system processes and the restrictions according to which the system is to create documents. b. The system posts invoice documents for the open goods receipts. c. The system creates a log of the invoices that were settled and those that were not settled.

Carrying Out ERS

1. Choose Logistics Invoice Verification Automatic Settlement Evaluated Receipt
Settlement (ERS). The selection screen appears. 2. You can use the following criteria to narrow down selection of the transactions to be settled: Company code Plant Goods receipt posting date Goods receipt document Fiscal year of the goods receipt Vendor Purchase order and order item

3. You can define the selection criteria for the invoice documents by: 4. Choose Delivery Purchase order Purchase order item Goods receipt document Credit memo Invoice Currency


The system issues a log for Evaluated Receipt Settlement, which displays the following: o Settled

In line with your selection criteria, the system displays all the order items that were settled (or if you are working in test mode, which would have been settled). Could not be settled In line with your selection criteria, the system displays all order items for which ERS is defined but could not be settled. It also lists the reasons. If the system reports being unable to invoice a transaction, you should exclude the transaction from ERS to avoid it being included in the log the next time ERS is run. Select the item and choose Exclude from ERS.