3-Way Match and the GR Based

IV flag
Hi folks,

I'm using SAP in finance for the last 6 months. I have recently requested that
the ""GR Based IV flag"" be removed from all vendors in the vendor master.
The goal was to allow us to enter invoices without the goods receipt (GR).
When we enter an invoice w/out the GR it gets automatically blocked for
quantity discrepancy (tolerance on qty is set to zero). My current dilemma is
that I am hearing from consultants that because I have turned off the ""GR
Based IV flag"" I have in fact eliminated the 3-way match. I don't agree with
the rationale and my counter argument is:
1. If the ""GR Based IV flag"" is on then the 3 way match is at the GR level
2. If the ""GR Based IV flag"" is off then the 3 way match is at the line
summary level.
Either way you have a 3 way match. It seems that some folks are getting hung
up on ""semantics"". Assuming that a 3-way match mean a specific GR must
be linked to a specific Invoice & PO.

How can I untangle this misconception? In ideas that I can use to try to
demonstrate the 3 way match is still on regardless of the ""GR Based IV
flag""?

Thanks for your help,

Alberto

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AC
Alberto Centeno
 
asked 12 years ago
 
updated 8 months ago
11 Answers | Add an answer
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Your understanding is correct. By turning off GR Based IV flag does not

mean that the 3 way match will not occur. 3 way match does occurs as part
of standard SAP functionality, the flag enables ensuring that invoices is
matched to a GR at a detailed line item level. Also GR based IV flag can
be turned off or on also at PIR & PO level

"AlbertoCenteno via sap-acct" <sap-acct@groups.ittoolbox.com>

07/12/2008 05:42 AM
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Subject
[sap-acct] 3-Way Match and the GR Based IV flag
Hi folks,
I'm using SAP in finance for the last 6 months. I have recently requested
that the "GR Based IV flag" be removed from all vendors in the vendor
master. The goal was to allow us to enter invoices without the goods
receipt (GR). When we enter an invoice w/out the GR it gets automatically
blocked for quantity discrepancy (tolerance on qty is set to zero). My
current dilemma is that I am hearing from consultants that because I have
turned off the "GR Based IV flag" I have in fact eliminated the 3-way
match. I don't agree with the rationale and my counter argument is:
1. If the "GR Based IV flag" is on then the 3 way match is at the GR level
2. If the "GR Based IV flag" is off then the 3 way match is at the line
summary level.
Either way you have a 3 way match. It seems that some folks are getting
hung up on "semantics". Assuming that a 3-way match mean a specific GR
must be linked to a specific Invoice & PO.
How can I untangle this misconception? In ideas that I can use to try to
demonstrate the 3 way match is still on regardless of the "GR Based IV
flag"?
Thanks for your help,
Alberto
AJ
Aman Joshi
 
12 years ago
reply to this
1

Alberto,

I see there are quite a few replies to your question, but I'm tempted to answer it as this
is my area of expertise :)

GR-based IV flag makes sure that you can post the invoice only after the GR is posted.
So, if you turn off the GR-IV flag, you can post the invoice. But it would be blocked for a
qty variance (as there is no GR). If you want to pay these invoices even before posting
the GR, you'd have to unblock these invoices in transaction MRBR by deleting the
quantity block.
There are couple of ways to avoid the invoices posted before GRs from getting blocked.
These include changing certain configuration.

Cheers,
Mat
M
manthena
 
12 years ago
reply to this

It is meant to work something like this:-

Your purchasing oragnisation places an purchase order with a vendor; your storeman
checks and receipts the goods when the vendor delivers them; accounts receives an
invoice from the vendor and checks the quantity and price against the purchase order
and that the goods have been received in good condition. If everything is OK the vendor
gets paid.

In my humble opinion you have a major financial control problem if you've changed your
system so that there is no check your company has actually received the goods before
processing a vendor invoice for payment. If your stores department are being slow at
receipting goods that is where management resources need to be deployed.
JW
James Wilson
 
12 years ago
reply to this

Hi Alberto,
Have this "GR Based IV flag" tick in the purchase order rather than in the
vendor master, this will help solve your problem.
NV-SAP

varadhan narasimhan
 
12 years ago
reply to this

hi ,
Dont remove the GR based IV flag as it will help you to book a bill very easily aga that
GRN no , But if you want to book a bill then every time you have to change to Qty and
value as per GRN of that bill while doing MIRO transaction.This will not block the bill
from payment purpose.

---
RR
Rajesh Ranjan
 
12 years ago
reply to this

Hi Mat
Could you able let us know the configuration that need to be done to post the invoice
without GR and invoice not getting blocked for quantity?

Thanks

Auroar
GS
gobi suppiah
 
12 years ago
reply to this

To post invoice without GR you will need to turn off the GR Based IV flag
at the Vendor Master, PIR and PO level. There is also the configuration
around Account Assignment categories that governs whether a GR is required
for the item at the time of IR. This config path is SPRO---> Material
Management ----> Purchasing ------> Account Assignment----> Maintain
Account Assignment Categories.

"auroar via sap-acct" <sap-acct@groups.ittoolbox.com>

07/22/2008 09:46 AM
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RE:[sap-acct] 3-Way Match and the GR Based IV flag
Hi Mat
Could you able let us know the configuration that need to be done to post
the invoice without GR and invoice not getting blocked for quantity?
Thanks
Auroar
AJ
Aman Joshi
 
12 years ago
reply to this

Hi,

3 way match happends irrespective of fact PO is GR based inovie or not. The 3 way
match happens at the line item level.
S
satchidanand_t
 
11 years ago
reply to this

hi,
where we can set GR -IV flag in venor master
regards
sajeev
SS
sajeev s
 
11 years ago
reply to this
It's in the purchasing data view at the vendor master. If you don't see it, chances are the
field is suppressed for the account group.
N
nomi4hire
 
9 years ago
reply to this
Your statement is correct, the 3 way match does occur, it is just a summary
by line. So if you have an iv qnty of 10 and 2 GR = 10, the iv will become
available for payment.

Regards,
Irene