Chapter 23 Invoice Verification

Invoice Verification is the part of the Materials Management Module that processes invoices from vendors by creating them in the system and matching them to Procurement Documents. Chapter Objectives Discuss the purpose of Invoice Verification. Discuss the details of each step in the Invoice Verification process. Discuss the integration points between the Materials Management and Financial Accounting modules in the Invoice Verification process.

4.6fi_23.1

Invoice Verification

Invoice Verification Environment

Materials Management Financial Accounting

PO Open Items Goods Receipt

Invoice

Invoice Verification

4.6fi_23.2

Invoice Verification

Information from an Invoice

Vendor Document Date Purchase Order Invoice Items Material Currency Quantities Unit of Measure Tax Amount Bank Data
4.6fi_23.3

Company Code

Amount per Item

Invoiced Amount

Terms of Payment
Invoice Verification

Entering Taxes on the Invoice

Tax Details Amount Tax Button Tax Code

4.6fi_23.4

Invoice Verification

Posting a Vendor Invoice

Invoice For Purchase Order GR / IR Account

Post
A xx B xx

Vendor Account

Client 010
Material Master Stock value

l sib e s Po pdat U

Invoice e Verification

GR/IR 200

Vendor 200-

Invoice Document #5100000028

Purchase Order History Invoice Data
4.6fi_23.5

Vendor A/C $200GR/IR A/C $200+

Invoice Verification

Account Postings
Purchase Order Qty. = 50 Pcs. $2 / Pc.

Goods Receipt Qty. = 50 Pcs.

Invoice Qty. = 50 Pcs. $2 / Pc.

Stock A/C 100

4.6fi_23.6

GR/IR 100 100

Vendor A/C 100

Invoice Verification

Invoice Verification
GR-based IV not selected
Standard PO
Item 10 Quantity 100 Net. Price 2

Goods Receipt

Invoice 200 $ 100 Qty.

50

Qty.

Inv. Receipt Final Invoice GR-based IV

Warning: Quantity invoiced greater than goods receipt quantity Warning: Document no. 5100000000 created (blocked for payment)

Invoice Verification
PO #

Item 10 100

Qty.

50
Invoice Verification

4.6fi_23.7

Invoice Verification
GR-based IV selected
Standard PO
Item 10 Quantity 100 Net. Price 2

Goods Receipt

Invoice 200 $ 100 Qty.

50

Qty.

Inv. Receipt Final Invoice GR-based IV

Error: Quantity invoiced greater than goods receipt quantity

Invoice Verification
PO #

Item 10 100

Qty.

50
Invoice Verification

4.6fi_23.8

Variances
Qty
25 Invoice GR P O 20 10

$ Price

20

Invoice

Date
P O Dec. 25

Invoice Dec. 1

4.6fi_23.9

Invoice Verification

Quantity Variance Example

Purchase Order 50 Pcs. @ $2 / Pc. Goods Receipt Qty. = 50 Pcs. Invoice Qty. = 100 Pcs. @ $2.00 each

Stock A/C 100+

GR / IR 100200+

Vendor A/C 200-

4.6fi_23.10

Invoice Verification

Tolerance Configuration
Quantity Variance when GR = zero

Price Variance

4.6fi_23.11

Invoice Verification

Blocking Invoices
Purchase Order 50 pcs. @ $2 / pc. Goods Receipt Qty. = 50 pcs. Invoice 50 pcs @ $5 / pc.

Quantity Price

50

50 <>

50
Error

50 x 2 = 100

50 x 5 = 250

Invoice is BLOCKED for payment (Price Variance)

4.6fi_23.12 Invoice Verification

Releasing Blocked Invoices

4.6fi_23.13

Invoice Verification

Automatic Release
100 pcs. Or der

50 pcs.
IR>GR Delive red Invoice 100 Pcs.

Invoice Blocked for Payment

50 pcs.
Delive red

X
Automatic Release

Payment Program can settle the Invoice

4.6fi_23.14

Invoice Verification

Manual Release
Blocks Item Q P D G M O I 001 003 004 X X X X X X

Document

select

51000072 51000137 51000263

release
------ ---F ---------orma-----Usage - t ------- -Form---a UAagwed -- alu slloe t V es Allowe d Valu es -- - ----

pay

4.6fi_23.15

Invoice Verification

Subsequent Debit / Credit

Purchase Order 100 pcs.@ $2 / pc. GR Qty. = 50 pcs. Credit Note PO# 50 pcs. @ $0.05- / pc. GR Qty. = 50 pcs. Invoice #1 50 pcs. @ $2 / pc. Invoice #2 50 pcs. @ $2.05 / pc. Invoice Verification Settled OK

Invoice Verification Sub. Deb / Cred

Stock A/C 2.50 Vendor A/C 2.50

4.6fi_23.16

P.O. History GR #1 50 pcs. GR #2 50 pcs. IR #1 50 pcs. IR #2 50 pcs. SC #1 50 pcs. 100 pcs.

$100.00 $102.50 -$ 2.50 $200.00

Invoice Verification

Credit Memos
Purchase Order 50 pcs. @ $2 / pc. Invoice Goods Receipt Qty. = 50 pcs. 25 pcs @ $2 / pc. 25 pcs @ $2.10 / pc.

Credit memos are issued when goods are returned or a price adjustment is needed.

Credit

Price Adjustment

Return all Goods

25 pcs @ $0.10 / pc.

Credit 25 pcs @ $2 / pc. 25 pcs @ $2.10 / pc.

4.6fi_23.17

Invoice Verification

Invoice Verification Chapter Summary

Key Terms Invoice Verification GR / IR Clearing Accounttion Quantity Variance Price Variance Schedule Date Variance Payment Block Credit Memo

4.6fi_23.18

Invoice Verification