Blanket/Framework Purchase Orders & MIRO

[Former Member]

We are investigating the usage of Blanket Purchase orders for our contracts department and the users are quite happy with what they can do with this. As the PO could last up to 2 years for the length of a contract together with an unknown exact amount, details are placed in the "Limits" section for pricing. For example, for "skip hire", they might put 10000GBP in the "expected value" field and this becomes the PO price.

However when an invoice for the first hire comes in e.g. 100GBP, we process MIRO as we have always done but message M8534 comes up saying the balance is not zero and in this case it never will be most of the time. The price on the PO line detail shown is also shown as zero in MIRO.

I guess I;m missing something simple that needs to be set on the accounts side to handle this aspect of the Blanket PO but I cannot find exactly what this is so far.

Could someone please advise on how to get invoice verification handled over the period of a blanket PO such as this.

Thanks

Jim

[Former Member]

In MIRO click on the account assignment tab in the line item & enter the Value there.

In the account assignment tab you can put the Value of the service or goods procured.

Now enter the amount as per the balance shown & post the invoice

Edited by: Kishore Kumar Chiluka on Apr 23, 2008 11:10 AM

[Former Member]

Thank you very much for the quick reply - that was much appreciated. That method was never used by Accounts so far but it seems to work fine and I'll setup some formal testing because of that to confirm this.

One more query though.. On reading about blanket POs and their expected values I got the impression that if the value was exceeded a message or some other notification would be made during the invoice verification process. When I was testing what you told me, I took one PO over the expected value but no messages came about and it was only through looking at the PO detail itself that I could discover invoicing was higher than the estimated value. Does something else need to be done to kick out such a message when this happens?

Best Regards

Jim

[Former Member]

Go to OMR6 Trxn & set Tolerance Limits for PP "Price variance"

and also LA--Amount of blanket purchase order

[Former Member]

Hi

You can set tolerance limits in transaction OMR6 at company code level for tolerance key LA: Amount of blanket purchase order.

The system calculates the sum of the value invoiced so far for the order item and the value of the current invoice and compares it with the value limit of the purchase order. It then compares the difference with the upper percentage and absolute tolerances defined.

You need to define the upper limit in value & % basis.

& configure the message M8 -278 as error in OMRM.

This will solve your problem. The user will not be able to invoice more than the limit. If you want the invoice to get blocked for payment you can configure the error as warning.

Thanks & Regards

Kishore

[Former Member]

Hi Kishore

Once again, many thanks for helping me progress this quickly.

I tried setting M278 in OMRM but it wouldn't let. However, I found M298 so did you mean that one?

I've tried setting a % value in there via OMR6 and set the message itself to warning level as the "expected value" figure is not always correct so invoices could be valid even if the value has been exceeded (although the PO expected value and limit will probably be changed as the contract progresses and more exact values become apparent). But so far that message has not appeared despite the Invoice value taking the total value beyond the expected value by more than the % value I set.

Best regards

Jim

[Former Member]

Hi again Kishore,

I'm afraid I need a little bit more assistance if you don't mind. I'm not progressing the appearance of a message at all so I've obviously not set the tolerances up properly but cannot see where.

As mentioned, in OMR6 section 'LA', I've set a tolerance of 10% for testing purposes but haven't updated the absolute side at all i.e. it is blank because the values used could vary enormously depending upon contract size and the button "do not check" is still ticked for that option.

So as I understand it, if invoices are received via MIRO and that total exceeds the "expected value" + 10% of the PO then a message should appear in MIRO at this point. But currently it's just accepting all invoices without any message at all.

I know I can't be too far away from the solution but I must admit I've found no clues in all the detail I've read so far.

Thanks in advance

Regards

Jim

[Former Member]

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