Prerequisite: Goods Receipt (T-Code: MIGO) or Service Entry Sheet (T-Code: ML81N)
MIRO is a transaction code for posting vendor invoice with purchase order. The usage of MIRO is to record vendor invoice. This is generally done after supplier deliver goods/service and submit invoice to company. Both material document and financial document are generated from this step.
Read more about concept of vendor invoice with PO and invoice without PO.
There are 4 types of invoice in MIRO. You will see a list of each type from drop-down list at header of screen.
Let’s see the usage of each transaction type.
1. Invoice
This is a default transaction type to record vendor invoice.
2. Credit Memo
Credit Memo is used to return amount based on quantity. For example, vendor submit invoice 1,000 USD for 5 computers. First time you post MIRO by using type “Invoice” to record vendor invoice 1,000 USD for 5 computers. Then, you found that 2 computers are poor quality and you want to return these 2 computers. Vendor will issue credit note to you. What you have to do is to post MIRO by using transaction type “Credit Memo” to reduce vendor amount with quantity. So, 5 computers will be returned 2 and the net amount that you have to pay to vendor is only for 3 computers.
3. Subsequent Debit
Subsequent Debit is a function to record additional price (price increase). It’s like you buy 5 computers 1,000 USD. First invoice submitted by vendor and record into system with 1,000 USD for 5 computers. Then, debit note 50 USD is issued by vendor for some reasons. If you accept for price increase, you post MIRO with transaction type “Subsequent Debit”. It’s mean that you buy 5 computers for 1,000 + 50 USD.
4. Subsequent Credit
Subsequent Credit is the similar to subsequent debit. But it is used on side of price decrease. Vendor may issue credit note when you found that computers are not perfect quality. Credit note deducts value 50 USD for 5 computers. You have to post MIRO by using transaction type “Subsequent credit” to deduct cost from system. This case, expense was recorded 1,000 – 50 = 950 USD and this is a net amount that you have to pay.
What’s the difference between Credit Memo and Subsequent Credit?
What’s the difference between Invoice and Subsequent Debit?
It’s different in term of quantity. Invoice and Credit Memo means changed of quantity and price while Subsequent Debit and Subsequent Credit mean only price changed.
Label: Vendor Invoice with PO in SAP, How to use MIRO in SAP, Subsequent Debit in SAP, Subsequent Credit in SAP, Credit Memo in SAP, What is difference Credit Memo and Subsequent Credit in SAP, What is Credit Memo in SAP, What is Subsequent Debit and Credit in SAP.