Post Invoices Automatically with ERS

  • by Martin Ullmann, President, DAP Consulting
  • March 15, 2003
The evaluated receipt settlement (ERS) lets your R/3 system post vendor invoices automatically without internal paper flow or manual verification steps. The author says that his company recently implemented ERS at a large public service organization. The task of posting approximately 100 daily invoices, which formerly required two full-time employees, now is completed in one hour per day.

Wouldn’t it be nice to let your R/3 system post vendor invoices automatically without any internal paper flow or manual verification steps? This is exactly the functionality of evaluated receipt settlement (ERS).

It reduces the number of invoices entered manually. (See, "Understanding ERS" below) With manual posting, you have to keep reposting recurring items such as rent or materials invoices from main suppliers. ERS allows you to post them automatically based on data in the purchase order and the goods receipt documents.

If an invoice is already posted and goods are returned, the system automatically posts a credit memo during the next ERS run (as of Release 4.6).

Reasonable people can disagree about what kinds of purchasing are suited to automated postings, and which aren’t. Based on my experience, the processes outlined in Table 1 (purchasing services) and Table 2 (purchasing contracted goods) rarely have any variances in quantity or price, and thus are suited to ERS.

My company recently implemented ERS at a large public service organization. The task of posting approximately 100 daily invoices, which formerly required two full-time employees, now is completed in one hour per day. In addition to saving staff time, the company considered these factors in deciding to implement ERS:

Martin Ullmann

Martin Ullmann is president of DAP Consulting, which specializes in public sector industries. He has more than 12 years of experience with SAP R/3. His main area of expertise lies in the FI/CO
area, with focus on new components, integration, enhancements, and business process improvements.

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