Welcome to the Efficient eLearning S A P training series. In this video we'll be
cancelling an invoice, that was posted against a purchase order, using transaction MR8M
and here's our list of topics.
First up we'll confirm where transaction code MR8M fits in the procure to pay process.
We'll then review the scenarios where a document requires reversal.
In order to manufacture a reversal scenario we'll post
a duplicate PO invoice using transaction MIRO.
We'll then cancel the duplicate invoice using transaction MR8M.
As you'll see the vendor line items for the duplicate invoice and the invoice cancellation
are not automatically cleared against each other. With cancellation of PO invoices there's
an additional step to manually clear the FI documents using transaction F-44 (to avoid
the documents being included in the payment run and appearing on the vendor remittance advice).
The vendor line item display (transaction FBL1N)
can then be refreshed to demonstrate the impact of the manual clearing.
Let's begin with where transaction MR8M fits in the procure-to-pay process.
Transaction MR8M is used to cancel PO invoices and credit memos - that is,
invoices and credit memos posted against a purchase order.
Consequently, the procurement steps in the procure to pay process (create purchase requisition,
approve purchase requisition, convert purchase requisition to purchase order
and post goods receipt) should have already been completed - as is the case in this example.
Transaction MR8M sits within the "Post Vendor Invoice" step
and is completed by the accounts payable department.
Okay, so we've established where transaction MR8M fits in the procure-to-pay process.
Now let's discuss the scenarios where a document requires reversal. The most common usage of
transaction MR8M is reversing invoices and credit memos, posted against a purchase order, that:
are duplicate documents (that is, the same document has been posted more than once);
are documents posted against the wrong company code;
are documents posted against the wrong purchase order;
or, are documents posted with any other incorrect details
that cannot be changed on a posted document.
In this video we'll post a duplicate invoice against a purchase order and
then use transaction MR8M to cancel the invoice document.
On the left of screen is the original invoice we posted in a previous video for transaction MIRO
(Post Vendor Invoice Against a Purchase Order). On the right of screen is transaction
MIRO pre-populated with the same invoice details with one exception - I've added an
extra zero to the invoice number to allow the invoice to be incorrectly posted a second time.
As the balance of the invoice is zero, and there are no error messages,
we can now click the "Post" button to post the vendor invoice.
Note the internal S A P document number for the invoice at the bottom of the screen.
Also note the text indicating the invoice is blocked for payment.
Click the "Back" arrow to return to the S A P main menu.
Now the invoice has been posted we can view it on the vendor line item display (transaction FBL1N).
In the S A P menu navigate to folder "Accounting",
"Financial Accounting",
"Accounts Payable",
and "Account".
Now double-click on transaction FBL1N (Vendor Line Item Display).
Some values have defaulted into the vendor account and company code fields.
I know the company code, so that's definitely correct. However, I don't know the vendor code
so I'll search for it just to be sure. Click the drop-down list to the right of the "Vendor" field.
Click in the "Name" field, type XYZ asterisk and then click the "Start Search" button.
Then double-click on the desired entry.
We can now choose a "Line Item Selection". There are three choices: "Open Items";
"Cleared Items";
and "All Items".
I'd like to see both open items and cleared items so I'll choose "All Items".
Now we move down to the "Type" section.
Both invoices and credit memos are normal items which is the default selection.
So I'll leave this section as it is. I can now click the "Execute" button to run the report.
This is the original invoice
and this is the duplicate we just processed.
Double-click on the duplicate entry and click the "Call Up Document Overview" button.
If you wish to see the original document posting (that is, the logistics invoice document)
choose menu option: Environment >> Document Environment >> Original Document.
Note the following field values - "Invoice Document Number" and "Fiscal Year".
We'll need these two values when cancelling the invoice document in transaction MR8M.
Now click the green "Back" arrow twice to return to the vendor line item display.
We'll leave this screen open in S A P so that,
once we've cancelled the invoice document in transaction MR8M,
we can return to the report and refresh the list to see the impact of the cancellation.
Navigate to folder: "Logistics";
"Materials Management";
"Logistics Invoice Verification";
and "Further Processing".
Now double-click on transaction MR8M (Cancel Invoice Document).
As we've just displayed the invoice document to be cancelled the invoice document number
and the fiscal year fields are automatically populated with these values.
If either of these fields are blank populate the fields with the relevant document number
and fiscal year from the previous screen.
Click in the "Reversal Reason" field and click the drop-down list to the right.
As our duplicate invoice was posted in the current
period we'll choose reason 01 (Reversal in Current Period).
You can specify a posting date for the invoice document cancellation. However, if you leave the
field blank it will simply default to the posting date on the original document being cancelled.
It's always a good idea to display the document before reversal (just to
make sure you are reversing the correct document).
Click the "Display Document" button to view the invoice document.
Once you are satisfied it's the correct document
click the green "Back" arrow to return to the previous screen.
You can now click the "Reverse" button to post the cancellation.
Note the internal S A P document number for the cancellation document at the bottom of the screen.
Also note the message about manually clearing the line items.
Now click the "Back" arrow to return to the S A P main menu.
Now if we return to the vendor line item display and choose menu option
"List >> Refresh" you can now see the cancellation document.
As you can see both the duplicate invoice and the cancellation are open items.
Note the accounting document numbers for these two entries.
In the next step we'll manually clear these line items against each other.
In the S A P menu navigate to folder "Accounting";
"Financial Accounting";
"Accounts Payable";
and "Account".
Now double-click on transaction F-44 (Clear Vendor).
Click the drop-down list to the right of the "Account" field.
Click in the "Name" field, type XYZ asterisk and then click the "Start Search" button.
Now double-click on the desired entry.
The "Clearing Date" defaults to the current date. So we can leave that as it is -
and the period field defaults based on the clearing date.
Ensure the correct company code and currency have
been selected then move down to the "Open Item Selection".
In this example we'll be clearing standard open items (that is, line items that do not
represent a special GL transaction) - so I'll leave this as the default selection.
The "Additional Selections" allow us to filter the documents to be cleared.
An important note - in the unlikely event that all open items for the vendor require manual clearing
you can leave the additional selections section as the default value (that is, "None"). However,
the more likely scenario is that you will have a selection of documents to be cleared.
In this example we have two document numbers that have to be cleared against
each other so I'll choose the "Document Number" radio button.
Now click the "Process Open Items" button to continue.
Enter the document numbers for the duplicate invoice and the
cancellation in the "From" field and then click the "Process Open Items" button.
By default the selected documents are activated (that is, the documents are
selected to be cleared). This is indicated by the different font colour for these values.
As you can see there are no difference postings. This is because the duplicate
invoice and the invoice cancellation are of equal and opposite value.
Click the "Post" button to clear the vendor line items.
Note the message at the bottom of the screen with the S A P document number for the clearing.
Now click the "Back" arrow to return to the S A P main menu.
If we return to the vendor line item display one last time and choose menu option "List >> Refresh"
you can now see that the duplicate invoice and the cancellation document are cleared items.
Consequently, both the duplicate invoice and the cancellation document will not be picked up in the
payment run and will not appear on the vendor remittance advice that's sent to the vendor.
That's everything covered for this video. Remember to "Like" the video and subscribe to
the channel if you'd like to be notified when new videos are uploaded. Thanks for watching.