The article explains the difference between t-code MIGO and MIRO, the two critical components of the Procure-to-Pay cycle in business. MIGO, or Goods Receipt, deals with the physical receipt of goods and stock management, while MIRO, or Invoice Receipt, focuses on financial validation and vendor invoice processing.
What is MIGO?
MIGO "Material Document," is a key transaction code in SAP (Systems, Applications, and Products) used for Goods Receipt. It is an essential part of the procurement process, involving the physical receipt of goods or materials from a vendor. MIGO is responsible for updating inventory records by increasing stock levels when goods are received.
What is MIRO (Invoice Receipt)?
MIRO, which stands for "Material Invoice Verification," is another vital SAP transaction code within the Procure-to-Pay process. MIRO is primarily used to verify and process vendor invoices. It ensures that invoices accurately reflect the goods or services received and records the corresponding financial transactions.
Key Differences Between MIGO and MIRO:
- MIGO deals with physical goods movement, including receipt, returns, and transfers within the organization.
- MIRO focuses on financial activities, specifically verifying and processing vendor invoices.
- MIGO records the physical receipt of goods and manages stock adjustments.
- MIRO verifies vendor invoice accuracy and creates financial liabilities.
- MIGO is managed by the logistics or warehouse department.
- MIRO is handled by the finance department, responsible for invoice validation and vendor payment records.