Evaluated Receipt Settlement (ERS) in SAP ERP and S4

How to Set Up Evaluated Receipt Settlement (ERS) in SAP ERP and SAP S/4HANA

Evaluated Receipt Settlement (ERS) is a self-billing function within the Invoice Verification process of SAP's Materials Management (MM) module. ERS enables companies to settle goods receipts without waiting for an invoice from the vendor, instead, basing the payment on the purchase order and goods receipt information. This article details the ERS functionality, prerequisites for its use, and its setup process in SAP ERP and SAP S/4HANA.

Key Benefits of ERS

• Automated Settlement: Payments are made based on received goods and purchase orders, eliminating the need for vendor invoices.
• Efficiency: Saves time and reduces errors, making it ideal for trusted vendors and inter-company transactions.
• Credit Memos: Automatically generates credit memos if goods are returned after an ERS invoice has been issued.

ERS Workflow Overview

1. Planned Delivery Costs: Costs associated with delivery can be automatically settled through transactions MRRL or MRDC, streamlining freight and handling cost management.
2. Message Processing (MR90): Standard output types (ERS and ERS6 for EDI) can be configured to send settlement notifications to vendors either immediately or after processing.
3. Reversal Process: ERS invoices can be canceled using MR8M, depending on configuration settings (OMRM). Proper reversals involve canceling the goods receipt rather than the invoice, ensuring consistency.

Prerequisites for ERS Configuration

To use ERS effectively, certain configurations in vendor master data and purchase order items must be set.

1. Vendor Master Setup (Transaction XK02)

• ERS Flag: In the vendor master, set flags to allow automatic settlement:
  • AutoEvalGRSetmt Del.: Allows ERS for deliveries.
  • AutoEvalGRSetmt Ret.: Enables ERS for return items.

2. Purchase Order (PO) Requirements

• ERS Indicator: ERS must be flagged at the PO item level.
• Goods Receipt-Based Invoice Verification (GR-Based IV): Ensures that invoices are based on goods receipts.
• Tax Code: Must be specified for tax calculation.

3. Goods Receipt (GR)

• PO Reference: GR must be linked to a PO with non-estimated pricing.

Configuring ERS for Planned Delivery Costs

1. Transaction OLMR: Specify automatic settlement for planned delivery costs.
2. Freight Vendor: Assign a vendor for freight to automate planned delivery cost settlement in POs.

ERS and Purchasing Integration

When a vendor is flagged for ERS, the system defaults the ERS indicator in new POs. However, this can be overridden if needed. To prevent the ERS default setting, set up an info record marking the material and vendor as not subject to ERS.

Running ERS Transactions

• MRRL: This transaction performs the ERS process, settling goods receipts based on configured criteria. Using the "Test Run" option allows users to review settlements before final posting.
• Background Execution: ERS can be scheduled in the background with program RMMR1MRS, automating routine settlements.

Additional Considerations

For further guidance on specific scenarios and customization:

• Tax Code Derivation: KBA 2758246 provides insights into tax code handling in ERS.
• Output Messaging: SAP Notes 320500 and 129643 cover message record creation and customizing output forms for vendor notifications.
• Goods Receipt Reversal: SAP Note 12791 offers details on handling goods receipt reversals post-invoice creation.

Conclusion

ERS in SAP ERP and SAP S/4HANA enables efficient, automated invoice processing for goods received, providing a valuable tool for managing vendor payments and ensuring streamlined supply chain operations. Proper configuration and adherence to prerequisites ensure that ERS functions seamlessly, providing businesses with a reliable, time-saving solution for their invoice verification needs.