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Introduction to Invoice Verification

Contents:
Invoice Verification as Part of Materials Management Invoice Verification Tasks Posting an Invoice Account Movements Price Control

SAP AG 1999

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Introduction to Invoice Verification: Ob ectives

At t#e conclusion of t#is unit- )ou "ill be able to: !emonstrate "#ere t#e Invoice Verification com$onent is located "it#in t#e %&' ()stem *ist "#ic# tasks are $erformed using t#is com$onent +,$lain "#ic# u$dates occur as a result of an invoice being $osted *ist "#ic# account movements occur as a result of $osting a sim$le invoice

SAP AG 1999

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Course Overvie" !iagram

Introduction to Invoice Verification

Variances .it#out %eference to an Item Invoices for POs "it# Account Assignment

/asic Invoice Verification Procedure Ta,es- Cas# !iscountsand 0oreign Currenc)

!eliver) Costs

Customs

Variances and /locking %easons

.... 2 3333 2 444 5 6666

(ubse1uent !ebits&Credits

.... 2 3333 5 6666

... 2 33 5 66

Invoice %eduction

Credit Memos and %eversals

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Introduction to Invoice Verification

4our com$an) receives a large volume of vendor invoices ever) da). T#e invoice data is based on t#e $urc#ase orders for stock or non8stock materials re1uested and s#i$$ed to )our com$an). 4ou "ant to revie" t#e t)$e of information t#at t#e vendors send.

SAP AG 1999

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MM Overvie"
Materials $lanning +,ternal Procurement Purc#asing Internal Procurement Production

Invoice Verification

Inventor) Management
:oods issue

Master !ata
Materials Batches Vendors G/L acco nts ! sto"ers #areho ses $ $

Invoice recei$t

:oods recei$t

Transfer $osting

Internal and e,ternal accounting

SAP AG 1999

(ales and distribution

The Invoice Verification component is part of Materials Management. The main task of the Invoice Verification component is to complete the procedure of materials procurement by posting the vendor invoice and to pass on information concerning the invoice to Financial Accounting and subsequent applications. Invoices that do not originate in materials procurement can also be processed.

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Invoice Verification +nvironment

Purc#ase order Purc#ase order #istor) !eliver) costs Material master Vendor master Invoice Verification

:&* accounts Assets 0I Invoice document 0urt#er documents Cost centers Pro ects Orders

MM Invoice document

SAP AG 1999

Invoice Verification is not an isolated component within the R/3 System. It operates in con unction with the Purchasing and Inventory Management components. Invoice Verification accesses data located in preceding application areas. !or each incoming invoice" Invoice Verification creates an ## invoice document and an !I invoice document $in conventional Invoice Verification" the system creates only an !I document%. The invoice document updates data in& Materials Management Financial Accounting In addition" further documents can be created automatically in application areas that follow.

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Invoice Verification

'n(oice
Vendor Vendor invoice

P rchase order

'n(oice (eri)ication
Invoice verification = 5 :oods recei$t

O$en vendor items

SAP AG 1999

'ou can post an incoming invoice with reference to a purchase order" a service" or a goods receipt. The R/3 System suggests the invoice items according to the reference entered ( the corresponding account postings are carried out automatically. )fter the invoice has been posted" the document appears as an open item on the vendor account $payment proposal list%.

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Invoice %ecei$t

Invoice

+!I

+%( +eli(er,

Invoice Verification de$artment %&' ()stem

Invoicing $lan %ent

*easing
SAP AG 1999

Invoices can be posted in the R/3 System in several different ways. The company receives invoices by post" then an employee enters and posts them. The company receives invoices via electronic transfer and the R/3 System posts them automatically $if the information transferred matches that e*pected by the R/3 System%. The R/3 System creates invoices using settlement programs that run at regular intervals $evaluated receipt settlement" invoicing plan" consignment settlement%.

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Posting an Invoice

Invoice for $urc#ase order Posting

A
33

:%&I% account Vendor account

/
33

!oc. no. 91@@@12' Vendor :%&I% 1@@ 8 1@@ 2

Material master MAP Value

Purc#ase order #istor) :oods recei$ts !o"n $a)ments Invoices

SAP AG 1999

+hen an invoice is posted" the following occurs& The R/3 System posts the individual line items to the appropriate accounts. It creates an ## invoice document and an !I document. It updates the purchase order history. It updates the material master" if necessary.

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Account Movements

Purc#ase order: 9@ $cs at 2.@@ ABI&$c. :oods recei$t for t#is $urc#ase order: 9@ $cs Invoice: 9@ $cs at 2.@@ ABI&$c.

:oods recei$t

Invoice

(tock account :%&I% account Vendor

1@@ 2 1@@ 8

1@@ 2 1@@ 8

SAP AG 1999

+hen goods are received" the R/3 System debits the stock account and posts the offsetting entry to the ,R/IR clearing account. In the case of material with a moving average price" the R/3 System posts the stock account with the value of the net order price multiplied by the quantity of goods received. In the case of material with a standard price" the R/3 System posts the stock account with the value of the standard price multiplied by the quantity of goods received. The R/3 System posts the difference to an account for e*penses or revenue from price differences.

+hen the invoice is posted" the ,R/IR clearing account is cleared and the vendor account is credited.

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Price Control
Material master record Price control V Total 1uantit) 9@ Total value 1@@.@@ Price 2.@@ :% 11@ 2 11@ 8 I% 11@ 2 11@ 8 (tock account :%&I% clearing account Vendor account Price difference account Material master record

PO: 9@ $cs at 2.2@ ABI&$c. :oods recei$t: 9@ $cs Invoice: 9@ $cs at 2.2@ ABI&$c.
:% 1@@ 2 11@ 8 1@ 2

Price control ( Total 1uantit) 9@ Total value 1@@.@@ Price 2.@@ I% 11@ 2 11@ 8

Moving average $rice

Total 1uantit) 1@@ Total value 21@.@@ Price 2.1@
SAP AG 1999

(tandard $rice
Total 1uantit) 1@@ Total value 2@@.@@ Price 2.@@

In the material master record of each material" you define how the material is to be valuated. There are two types of price control& Standard price #oving average price +hen a material is valuated at a moving average price" the price changes in line with the delivered costs. If the purchase order price or the invoice price varies from the price in the material master record" the R/3 System posts the difference to the stock account if there is stock coverage for the invoice quantity. )s a result" the value and the price of the material change. +hen a material is valuated at a standard price" the R/3 System posts differences between the purchase order price or the invoice price and the price in the material master record to a price difference account. )s a result" the price in the material master record remains constant.

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Invoice Verification Procedure

Conventional Invoice Verification

!irect $osting to material and :&* account

*ogistics Invoice Verification

+istri/ +istri/ ted ted s,ste"s s,ste"s 0nli"ited 0nli"ited " " lti1le lti1le selection selection Postin2 Postin2 lo2ic lo2ic Variances Variances and and /loc3in2 /loc3in2 reasons reasons 'n(oice 'n(oice Veri)ication Veri)ication in in the the /ac32ro /ac32ro nd nd 'n(oice 'n(oice red red ction ction

Preliminar) $osting

...

...

SAP AG 1999

There are two types of Invoice -erification& .ogistics Invoice -erification /onventional Invoice -erification .ogistics Invoice -erification was developed to take into account requirements that were technically not possible with conventional Invoice -erification. These include& The processing of 0mass data1 The distribution of #aterials #anagement and !inancial )ccounting on different systems /onventional Invoice -erification and .ogistics Invoice -erification differ in the scope of functions offered. 'ou can use conventional Invoice -erification and .ogistics Invoice -erification alongside each other. .ogistics Invoice -erification will replace conventional Invoice -erification completely. 2ew functions are developed in .ogistics Invoice -erification only.

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Introduction to Invoice Verification: (ummar)

4ou are no" able to: !emonstrate "#ere t#e Invoice Verification com$onent is located "it#in t#e %&' ()stem *ist "#ic# tasks are $erformed using t#is com$onent +,$lain "#ic# u$dates occur as a result of an invoice being $osted *ist "#ic# account movements occur as a result of $osting a sim$le invoice

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