What indicators are required for evaluated receipt settlement (ERS)?

Evaluated Receipt Settlement (ERS) is a process in procurement that allows for the automatic creation of invoices based on goods receipts, thereby reducing the need for manual invoice processing. For ERS to be implemented successfully, certain conditions must be met in the purchase order.

One of the primary requirements is that the goods receipt-based invoice verification must be enabled in the purchase order. This means that the system will automatically take the information from the goods receipt (when materials are delivered) to create the invoice, allowing for seamless and efficient accounting processes without requiring a manual entry for the invoice. This approach minimizes errors and streamlines the procurement and invoicing workflow, promoting efficiency in the purchase-to-pay cycle.

Other options, such as manual invoice checks and adjustments in reporting, do not directly facilitate the ERS mechanism as they do not pertain to the automatic process of generating invoices based on the goods receipt. Supplier performance evaluations, while important in a procurement context, are more related to assessing supplier reliability and quality rather than functioning as a prerequisite for ERS. Thus, the requirement of having goods receipt-based invoice verification directly aligns with the operational framework of Evaluated Receipt Settlement, which is why this is the correct choice.