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subsequent settlement "Urgent"

Hi folks ,

a). Can anyone explain subsequent settlement process in brief and how its done in SAP?

b). Also please explain business volume ??.

whats business volume comparison ?

Points for helpful answers 😊

Regards

Kumar

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    author's profile photo Former Member
    Former Member
    Posted on Dec 07, 2007 at 12:46 PM

    Dear Kumar,

    Subsequent settlement is big subject in SAP , however I will give you brief idea.

    Subsequent settlement is normally done in following ways

    1) Subsequent Debit or Credit.

    a) This is done in case there is change in total value of invoice of PO item ( Value difference)

    b) Total Invoice Qty remain unchanged

    c) Only value base transaction takes place & not Qty based

    d) if the cost are incurred - Enter subsequent Debit in MIRO screen

    e) If credit memo is received from vendor enter subsequent credit in MIRO

    f) System suggest only entire invoice Qty & not value

    g)Maximum Qty that can be debited / credited is less or equal to invoiced amount.

    h)cannot refer to particular invoice

    i) List separately in PO history

    J) If Qty is already delivered thae system makes offset entry in stock A/c , Price difference or consumption account as applicable

    k) If qty is not red. then system makes offset entry in GRIR A/C & when good are delivered system post amount to respective stock Accounts.

    2) Invoice Reduction

    a)If invoice shows a variance when compared to expected Qty or expected value & you don't want to accept difference you can reduce invoice.

    b) There is special display in item list for invoice reduction in MIRO

    c) When you post reduction invoice document two Accounting documents are generated one actual value & qty as per invoice posting & another one is credit memo for difference between actual Qty

    I hope above explanation will give you brief idea how it works.

    If useful please reward points,

    Vivek Maitra

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  • Posted on Dec 07, 2007 at 12:54 PM

    Hi,

    Purpose

    Subsequent Settlement allows the one-time or periodic settlement of conditions that are valid subsequently. Its functions can be used in connection with your vendors for invoices in purchasing.

    For example, if you agree with a vendor that certain conditions will not be factored into each invoice, but only at the end of a certain time period, and perhaps only if a certain volume is reached, you can save this arrangement in your system. The system updates the relevant values and calculates the conditions at the determined point(s) in time. Use this process when you and your vendor have agreed to conditions that are to be settled at a later date.

    Process Flow

    1)Creation of Arrangements

    2)Order and Goods Receipt

    3)Invoice Verification

    4)Updating of Business Volume

    5)Interim Settlement

    6)Partial Settlement

    7)Final Settlement

    Hope this finds useful.

    Regards,

    Vengat

    Reward if it is the process is OK

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  • Posted on Dec 08, 2007 at 10:39 AM

    subsequent settelment is used in case of GR BASED IV in migo if u have marked the grbased iv check box in purchase order

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  • Posted on Dec 12, 2007 at 04:34 AM

    Refer the answer given by Vengata Raghavan.

    This term is used in case of subcontractying.

    Through MB04 or Migo you can adjust components provided to vendor.

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 09, 2008 at 04:00 PM

    The business volume is updated accordingly to billing, po or Goods receipt.

    If the agreement date is latter than the last billing you have to run transaction MEBA to search in the system Backwards for billings made before the agreement.

    Having done that than you are able to run MEB4 and adjust business volume.

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