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Invoice for Local contract.

Former Member
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The process in ECC system 1) create a contract 2) Create Release Order 3) Post the invoice against Release order, we won't be able to post the invoice against the contract .

In SRM system , is it possible to post the invoice against the local contract with out creating follow on purchase order. Request feedback from SRM experts

Regards

Mani

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Dear Mani,

As we know that contracts are the agreements for future supply and we can not show contract as an asset like inventory (As no goods has been delivered) neither it is a liability until the PO is created and goods delivered.

So in the books of accounts if we create invoice against contract we can not show it on balance sheet.

Therefore, it is not possible to raise the invoice against contract you will have to have PO for the same.

Assign points if answered.

Regards, Ravi

Former Member
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Thanks for info. I fully agree with you in AP point of view

I am hearing from some of the SRM collegues that it is possible in SRM . Hence I would like to know from SRM experts whether they have any experience in their projects

Regards

Mani

Answers (2)

Answers (2)

Former Member
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Well, then you post it!

The invoice could then go through a workflow (or the IMS if you will use that for exception handling) and then posted to your backend.

The advantage of assigning contracts to AP invoices without PO reference is that you can capture the spend for these AP invoices and then make follow ups in BW(If you use that).

Don't know if that answers your questions?

cheers,

Kristoffer

Former Member
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Hi thanks,

In this case on what basis, financial postings will happen in background. While creating Invoices In SRM , What will be financial entries.

In general , the entries are

Vendor(-)

GR/IR clearing(+)

What will be the entries in FI for the invoice creation

Regards

Mani

Former Member
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Dear Mani,

Accounting entries will be created base on the document entry. It is pure FI Invoice Posting.

Thanks,

Amit

Former Member
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Hi Mani,

I have been able to assigned a local contract in SRM when creating an invoice (In BBPIV03) without PO reference. However, you have to assign the contract to each invoice item.

Does that answer your question?

br,

Kristoffer

Former Member
0 Kudos

Thanks Kristoffer.

The process steps are

1) Create Local contract

2) create the Inovice against the Local contract

3) then what is the next process step.

could you please explain more about the process . thanks in advance

Regards

Mani

Message was edited by:

Manikanda Ilango S.