SAP MM KB

Invoice verification in SAP MM (transaction MIRO) is the final step in the procurement cycle, where vendor invoices are matched against Purchase Orders (PO) and Goods Receipts (GR). Invoices can get blocked for payment due to various discrepancies, leading to delays in vendor payments and reconciliation issues.

Symptoms:

• Invoice posted in MIRO but remains blocked for payment.
• Error message "Balance not zero" during invoice entry.
• "Quantity invoiced exceeds quantity received" or "Price variance too high" warnings/errors.
• Invoice appears in transaction MRBR (Release Blocked Invoices).
• Vendor inquiries about delayed payments.

Root Causes:

• Price Variance: Invoice price differs from PO price beyond defined tolerance limits.
• Quantity Variance: Invoiced quantity differs from received quantity (GR) beyond tolerance limits.
• Missing Goods Receipt: Invoice received before the corresponding goods receipt has been posted.
• Manual Block: Invoice manually blocked by a user.
• Stochastic Block: Invoice randomly selected for block based on system configuration.
• Date Issues: Posting date or document date outside allowed ranges.

Solution Steps:

1. Identify the Block Reason:

   The first step is to determine why the invoice is blocked.

   • Use transaction MRBR (Release Blocked Invoices). Enter the company code, vendor, or invoice number.
   • The system will display the reason for the block (e.g., price variance, quantity variance, manual block, stochastic block).

2. Resolve Price Variance Blocks:

   If the block is due to price variance (e.g., "PP" block):

   • Compare the invoice price with the PO price (ME23N).
   • Check the price tolerance limits configured in OMR6 (Set Tolerance Limits). If the variance is within acceptable business limits but outside system tolerance, the tolerance limits might need adjustment (consult with a functional consultant).
   • If the invoice price is genuinely incorrect, contact the vendor for a credit memo or corrected invoice.
   • If the variance is acceptable, you can manually release the invoice in MRBR (with proper authorization) or adjust the PO price (if not yet received/invoiced).

3. Resolve Quantity Variance Blocks:

   If the block is due to quantity variance (e.g., "DQ" or "SQ" block):

   • Compare the invoiced quantity with the goods receipt quantity (MIGO document, ME23N PO history).
   • Ensure all goods have been received and the GR has been posted correctly. If not, post the missing GR.
   • Check the quantity tolerance limits in OMR6.
   • If the quantity discrepancy is legitimate, contact the vendor for a corrected invoice or adjust the PO/GR (if business process allows).
   • Release the invoice in MRBR once the quantity discrepancy is resolved or deemed acceptable.

4. Handle Missing Goods Receipt Blocks:

   If the invoice is blocked because the GR has not been posted:

   • Post the goods receipt for the corresponding Purchase Order using MIGO.
   • Once the GR is posted, the invoice should automatically be released or can be released via MRBR.

5. Release Manual/Stochastic Blocks:

   If the invoice was manually blocked or blocked stochastically:

   • These blocks can typically be released directly in MRBR by an authorized user after reviewing the invoice.

6. "Balance not zero" Error:

   This error means the debit and credit sides of the invoice entry do not balance.

   • Double-check all amounts, quantities, and tax codes entered in MIRO.
   • Ensure the correct PO and GR are referenced.
   • Verify that the tax calculation is correct.

Prevention:

• Implement clear processes for goods receipt and invoice processing.
• Ensure timely posting of goods receipts.
• Regularly review and adjust tolerance limits in OMR6 to align with business practices.
• Train users on proper MIRO entry and common blocking reasons.
• Utilize automated invoice processing solutions where possible to minimize manual errors.

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