Gross Invoice Posting (RE) V - S Net Invoice Posting (RN) - SAP Blogs

12/7/2017 Gross Invoice Posting (RE) v/s Net Invoice Posting (RN) | SAP Blogs
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Gross Invoice Posting (RE) v/s Net Invoice

Posting (RN)
July 19, 2013 | 3,976 Views |
Satish Babu
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MM (Materials Management)
SAP ERP | enterprise resource planning | gross invoice | net invoice | re | rn | sap erp logistics materials management | terms of
payment
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Hi Friends,
https://blogs.sap.com/2013/07/19/gross-invoice-posting-re-vs-net-invoice-posting-rn/ 1/24
In this document Im going to explain about Gross Invoice Posting (RE) V/S
Net Invoice Posting (RN) in detail.
Gross Invoice Posting:
In Gross invoice posting system will ignore the cash discount at the time of
invoice posting and posts the cash discount at the time of payment.
Net Invoice Posting:
In Net invoice system will consider the cash discount at the time of invoice
posting and post the cash discount amount in to cash discount in to cash
discount G/L account at the time of payment.
Before going in to detail about this topic first we have to understand Cash
discounts
What is Cash Discount?
Cash Discount is a discount given on total amount of invoice posted, in those

cases when payment is made within a stipulated period.
This cash discount is determined by payment terms entered in the purchase

order for example.
Configuration path to define Payment terms:
SPRO > Materials Management> Purchasing> Vendor Master> Define

terms of payment.
As shown below you will enter the cash discount granted in percentage if you
make payment within specified days from baseline date selected.
In SAP LIV this gross invoice posting and net invoice posting is controlled by
the definition of invoice document type as shown below.
Transaction code OBF4
RE Gross Invoice Posting
RN Net Invoice Posting
Gross Invoice Doc.type: RE
Example1: Gross Invoice Posting
Create a PO via., ME21N as shown below by entering payment terms in

header invoice tab of PO. tax code is mandatory to work with payment terms.
carry out goods receipt w.r.t Purchase order in transaction code MIGO.
The below are the postings at time of GR in accounting document.
Do Invoice posting w.r.t Purchase order in transaction MIRO.
Observe the baseline date filled as per the setting in terms of payment.
Check the document type in details tab and select Gross Invoice receipt doc.
type RE
The below is simulation screen in invoice posting and observe only vendor
account and GR/IR clearing account as cash discount is not considered in
gross invoice posting
Below is the accounting document and postings at LIV.
Gross invoice doc. type, system ignores cash discount at the time of
Invoice posting.
Gross Invoice Settlement or outgoing payment to vendor
Transaction code F-53
Observe the cash discount is 3% applied as per the terms of payment from
payment base line date.
Gross invoice doc. type, system posts cash discount at the time of payment.
Below is the posting and accounting document generated at the time of

payment.
Example2: Net Invoice Posting
Definition of Net Invoice Doc. Type: RN
Create a PO via., ME21N as shown below by entering payment terms in

header invoice tab of PO. tax code is mandatory to work with payment terms.
carryout Goods receipt w.r.t. Purchase order for Net invoice posting.
do Invoice posting w.r.t. Purchase order.
in detail tab of MIRO select document type Net Invoice Doc. Type: RN
In Net invoice doc. type system will post the cash discount at the time of
Invoice posting itself.
Note: if the material is Moving average price (V) controlled then the discount
amount is credited from stock account if sufficient stock exists for that material
and debited to discount clearing account.
If the material is standard price (S) controlled then the discount is credited to
gain from price difference account and debited to discount clearing account.
account postings are as shown below
Net Invoice Settlement or outgoing payment to vendor
Transaction code F-53
if the payment is made later period than invoice posting then the discount
actually applicable on payment date will be considered and the discount
amount reduced is debited to discount loss account and total discount
amount is credited to cash discount clearing account as shown below.
-End of Document
Thanks for reading and please rate the document and share your feedback
and reviews.
Regards
Satish
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27 Comments
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Nagendra m
August 17, 2013 at 6:51 am
VERY KEEN PRESENTATION AND VALUABLE INFORMATION FOR FRESHERS LIKE

US.
Mehmet Ozgur Unal
August 17, 2013 at 1:35 pm
very helpful doc.
Sanjeet Kumar Yadav
August 17, 2013 at 2:53 pm
Its nice for beginning level. thanks a lot.
Satish Babu Post author
August 17, 2013 at 3:17 pm
Hi Nagendra, Mehmet & Sanjeeb,
Thanks for the feedback and appreciation.
Regards
Satish
Amala Srinivasa Rao
August 19, 2013 at 6:48 am
Appreciable effort !!!
Nazeer Shaik
August 22, 2013 at 9:56 am
Good job buddy..:)
Bisweswar Sahu
August 22, 2013 at 1:26 pm
Thanks Budy. This is what I was searching some days ago.
Regards,
Bisweswar
August 22, 2013 at 6:59 pm
HI Srinivas, Nazeer, Bisweswar,
Thank You all For the feed back:)
Regrds
Satish
Naresh Krishnamoorthy
August 23, 2013 at 6:17 am
Good OneMany Thanks.
Best Regards,
Naresh K.
August 23, 2013 at 12:53 pm
HI Naresh,
Thanks for the feedback..
Regards
Satish
Udaya SN
September 1, 2013 at 8:52 am
very nice..
kj
September 1, 2013 at 8:54 pm
well explained.. nice document
Neil Huang
Excellent work.
Khushi Mughal
Hi Satish,
There are always some great efforts by you.
Thanks for posting.
Kind regards,
Khushi
Hi Khushi,
Thank You very Much for Your appreciation
Regards
Satish
Ganapathy Subramanian Nandhi
Very well explained.
Hi Ganapathi,
Thank You very much for the feedback..
Regards
Satish
kush kumar
Very Nice doc. Thanks a lot for sharing this valuable information.
HI Kush Kumar
Thank You very much for the feedback
Regards
Satish
Mohsin Abbasi
October 3, 2013 at 7:13 pm
Hi Babu,
Very Informative Document.
Best Regards
Mohsin Abbasi
Aranganathan Chandran
October 15, 2013 at 3:52 pm
Good one . Thanks.
Shiva Vasireddy
October 20, 2013 at 8:27 am
Thanks for sharing.
Arturo Schuler
March 27, 2014 at 9:12 pm
Thank you for sharing Satish, very useful.
One question:
I am implementing with Net Amount and it is working properly in Logistics (I followed

your SPRO steps, customizing in OBXA, OBCP, OBA7 (RE and ES) and OBXV), but at
time of Payment (F110, F-53, etc.) we are having the following issue:
If the Vendor is subject to a Withholding Tax, and during MIRO I specified that an
specific item is not eligible for Cash Discount, then during the payment run the system is
calculating the W/tax base amnt as if all items of Invoice are eligible to Cash Discount
Example:
We entered an invoice (through MIRO with PO) for a total of 51,000 usd that have two
items:
1.- 50,000 usd
2.- 1,000 usd
During MIRO we specified that only item 1 (50,000 usd) is eligible to a Cash Discount
that would be of 3%.
Cash discount is being calculated correctly with an amount of 1,500 usd (3% of 50,000).
But during the Payment Run (F110) the Withholding Tax Base Amount calculated by the
system is 49,470 usd (51,000 usd (51,000*3%)).
As during in MIRO the item 2 (1,000 usd) was entered specifying it is W/o Cash Discount
then the expected result should be:
A Withholding Tax Base Amount of 49,500 usd (51,000 (50,000*3%)) instead of the
49,470 usd.
Sorry to write it here, I already opened a discussion (Withholding Tax Base Amount
calculated as if all items of Invoice are eligible to Cash Discount) but havent found any
solution.
Thanks and Regards,
adwait bachuwar
March 28, 2014 at 4:03 am
Hi,
Nice document explaining about different document types. I never knew about Cash
Discounts but now i have better idea. Thanks to you.
Chaitanya Budime
March 31, 2014 at 8:16 pm
Hello,
Thanks for the explanation, its very informative. We are using Net Invoice Posting (RN)
and document of type RN is not allowing us to create multiple vendor items in the
accounting document- Error M8688. Is there is any way to handle this scenario.
Thanks,
Chandu.
Vincent Ong
August 11, 2014 at 12:31 pm
Nice, been wondering about it for sometime now. Thanks for clearing that up
SunilKumar Kundeti
May 2, 2017 at 3:53 am
Good job bro:)
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12/7/2017 Gross Invoice Posting (RE) v/s Net Invoice Posting (RN) | SAP Blogs

Gross Invoice Posting (RE) v/s Net Invoice

Gross Invoice Posting:

Net Invoice Posting:

What is Cash Discount?

Cash Discount is a discount given on total amount of invoice posted, in those

This cash discount is determined by payment terms entered in the purchase

Configuration path to define Payment terms:

SPRO > Materials Management> Purchasing> Vendor Master> Define

Transaction code OBF4

RE Gross Invoice Posting

RN Net Invoice Posting

Gross Invoice Doc.type: RE

Example1: Gross Invoice Posting

Create a PO via., ME21N as shown below by entering payment terms in

The below are the postings at time of GR in accounting document.

Do Invoice posting w.r.t Purchase order in transaction MIRO.

Below is the accounting document and postings at LIV.

Gross Invoice Settlement or outgoing payment to vendor

Transaction code F-53

Below is the posting and accounting document generated at the time of

Example2: Net Invoice Posting

Definition of Net Invoice Doc. Type: RN

Create a PO via., ME21N as shown below by entering payment terms in

do Invoice posting w.r.t. Purchase order.

account postings are as shown below

Net Invoice Settlement or outgoing payment to vendor

Transaction code F-53

August 17, 2013 at 6:51 am

VERY KEEN PRESENTATION AND VALUABLE INFORMATION FOR FRESHERS LIKE

Mehmet Ozgur Unal

August 17, 2013 at 1:35 pm

very helpful doc.

Sanjeet Kumar Yadav

August 17, 2013 at 2:53 pm

Its nice for beginning level. thanks a lot.

Satish Babu Post author

August 17, 2013 at 3:17 pm

Hi Nagendra, Mehmet & Sanjeeb,

Thanks for the feedback and appreciation.

Amala Srinivasa Rao

August 19, 2013 at 6:48 am

Appreciable effort !!!

August 22, 2013 at 9:56 am

Good job buddy..:)

August 22, 2013 at 1:26 pm

Thanks Budy. This is what I was searching some days ago.

Satish Babu Post author

August 22, 2013 at 6:59 pm

HI Srinivas, Nazeer, Bisweswar,

Thank You all For the feed back:)

August 23, 2013 at 6:17 am

Good OneMany Thanks.

Satish Babu Post author

August 23, 2013 at 12:53 pm

Thanks for the feedback..

September 1, 2013 at 8:52 am

September 1, 2013 at 8:54 pm

well explained.. nice document

September 12, 2013 at 9:41 am

September 17, 2013 at 2:30 am

There are always some great efforts by you.

Thanks for posting.