Service PO but ticked is GR-based IV

[Former Member]

hi Experts,

We have just shifted from all item PO's regardless if it is a service or not, to proper classification of requisition. Service PO's are now provided to service suppliers and material PO to material suppliers. However in Service PO issued what is ticked is GR-based IV and not S-based IV. The issue now is this, Upon posting of an invoice that is less than the value of the GR, the system creates a credit entry back to WBS. Considering that the amount of the GR has already been expense for that period, the Credit entry now requires us to make an accrual at the end of the period.

GR amount is 1 million

Invoice amount is 100 thousand

Upon posting of the invoice, the entry posting provided is wrong:

DR GRIR for 1 million

   CR WBS GL            900 thousand

   CR vendor account   100 thousand

Suppose what is ticked on PO is S-based IV, will it provide the above entry in-posting invoice? Or the entry will be different as the posting will now be on the Service Entry level.

Thank you,

Frank

[BijayKumarBarik]

Hi,

For service PO - you need to have service entry sheet(SES) and release those SES which creates material document with 101 movement type- By selection of both, GR -based IV and S-based IV are the better control of 3-ways match with regards to logistic process.

Better keep selection of two check boxes(GR-based IV and S-based IV) in vendor master where you can creates the service PO for those vendor.

Regards,

Biju K

[former_member233510]

Hi Yuri,

The accounting entries mentioned by you is not wrong. It is the standard behaviour when you post invoice with amount less than the goods receipt (Service acceptance ) amount.

Suppose what is ticked on PO is S-based IV, will it provide the above entry in-posting invoice? 

Yes, the accounting entries will be,

Vendor account  -  Credit - 100,000

WBS account    -  Credit - 10,00,000

GR/IR account  -  Debit  -  900,000

Or the entry will be different as the posting will now be on the Service Entry level.

No.

Note:

1)  If you set S-based invoice indicator, for further postings the system will not propose the balance since the system process invoice based on the accepted service entry sheets.

2) If you not set the S-based invoice indicator, the system proposes balance amount for invoice posting (900,000) and upon posting, the accounting entries will be,

Vendor account - Credit - 900,000

WBS account -   Debit - 900,000

BR, Rosh.

[sudeep_a]

please check a recent thread and see whether this clarifies your query.

Regards,

Sudeep.