Invoice Verification for SAP R/3 Stephen Birchall
Contents Preface
........................................... ........................................................... ................
5
................................ Acknowledgments ................................
5
2.2
Delivery Charges ( Planned and .......................................... Unplanned ) ..........................................
21
Difference Between Planned and
1
What is Invoice Verification? Verification? 1.1
1.2 1.3
.......... ............... .....
7
Unplanned Delivery Charges ................
21
............................... High-Level Process ...............................
7
...................................... A Third Option ......................................
22
..................................... The Main Steps .....................................
7
Planned Delivery Charges ....................
22
............... ..... Capturing the Invoice Details ..........
8
Posting Planned Delivery Charges in
............. ... The Use of Invoice Verification ..........
8
............................... Invoice Verification ...............................
24
.......... Processing Mismatched Invoices ..........
9
............... ..... Unplanned Delivery Charges ..........
25
............ .. Handling Mismatched Invoices ..........
10
..................................... A Third Option .....................................
26
....... Mismatches During Input ( MIRO ) .......
10
............................................. Tolerances .............................................
26
Processing Blocked Invoices ................
12
.......................... Why Have Tolerances? ..........................
26
..... What Kind of Tolerances are There? .....
26
2.3
Using Workflow when Mismatches
2
.................................................... ........ Occur ............................................
12
................................. Special Tolerances .................................
27
......................................... Using MRBR .........................................
12
.................................. Other Tolerances ..................................
27
Automatic invoice release ....................
13
Configuring the Tolerances ...................
27
1.4
.................................... Parking Invoices ....................................
14
Error Messages Resulting from
1.5
.......... Workflow in Invoice Verification ..........
15
............................................. Tolerances .............................................
28
1.6
............................................... Summary ...............................................
16
.... ERS ( Evaluated Receipt Settlement ) ....
28
.......................... How Does ERS Work? ..........................
28
How Safe is the Process? ......................
28
Specific Functions in Detail 2.1 2.1
..................
2.4
17
The Goods Receipt-Based Invoice .......... Verification ( GR- Based IV ) Flag ..........
ERS for Inter- or Intra-Company 17
What Does the GR-Based IV
............................................... .. Scenarios .............................................
28
.................................... The ERS Process ....................................
29 29
............ The ERS Settlement Transaction ..........
29
................................. Invoice Reduction .................................
30 30
............................................... Flag Do? ...............................................
17
.......... The Risks of Setting the Flag Off ..........
18
........... The Risks of Setting the Flag On .........
18
...... What Does Invoice Reduction Do? ......
30
............................................. On Vs. Off .............................................
19
............ ... The Invoice-Reduction Process .........
30
............................. How the Flag Works .............................
19
The Financial Posting of the Difference
31
Entering an Invoice for a Purchase Order with the Flag Set On ..................
2.5
2.6 20
Entering an Invoice for a Purchase Order that Has the Flag Set Off .....................
20
.......................... Where is the Flag Set? ..........................
21
Pipeline and Consignment Stock ............................................ Settlement ............................................
32
............................... Consignment Stock ...............................
32
....................................... Pipeline Stock .......................................
33
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1
Contents
2.7
...................................... Invoicing Plans ......................................
33
....................................... Running F110 .......................................
49
........................ Periodic Invoicing Plans ........................
33
.......................... The F110S Transaction ..........................
49
.......................... Partial Invoicing Plans ..........................
34 34
............................................... .... Summary ...........................................
49
.............. .... How Does the Process Work? ..........
34
4
Invoice Verification Relating to ...................................... Invoicing Plans ......................................
35
Basic Configuration for Invoicing 2.8
2.9
Configuration
.............................................. ..............................................
51
4.1 4.1
.............................. Basic Configuration. ..............................
51
4.2
Define the Attributes of System
...................................................... ......... Plans .............................................
35
.............................................. Messages ..............................................
52
............ .. Subsequent Debits and Credits ..........
35
.... How to Configure System Messages ....
53
Posting a Subsequent Credit ................
35
4.3
.......................... Define Tax Jurisdiction ..........................
54 54
Posting a Subsequent Debit .................
36
4.4
............. .... Configure Automatic Postings .........
54
....................... Posting a Normal Credit .......................
36
............................. Account Assignment .............................
55 55
........................... Purchase-Order Texts ...........................
37
............................................. Simulation .............................................
59
.................................. The Basic Process ..................................
37
............... ....... .. The G/L Accounts Function ..........
60
.................................. Incoming Invoice ..................................
60 60
An Example of How to Use this 2.10
3.7
4.5
............................................... .. Function .............................................
38
............................. Number Assignment .............................
61
............................................... .. Summary .............................................
38
.... Tax Treatment in Invoice Reduction ....
62
Maintain Default Values for
3
Financial Aspects of Invoice .................................................. ..... Verification .............................................
39
Configure How Exchange- Rate
3.1 3.1
.............................................. .. Overview ............................................
39
......................... Differences are Treated .........................
3.2
..... Automatic Account Determination .....
39
Configure How Unplanned Delivery
3.3
The Goods Received/Invoice Received .................................. Clearing Account ..................................
............................................. Tax Codes .............................................
................................... Costs are Posted ................................... ............................... Invoice Verification ............................... ........................... Price Variances Occur ...........................
3.4
3.5
42
Tax Processing Within
............................................ Tolerances ............................................
63
Maintain Bar-Code Entry ......................
63
............................... Invoice Verification ...............................
43
.... G/L Accounts and Material Account ....
64
.......................... The Calculate Tax Flag ..........................
44 44
.............. ........ .... Maintain Item-List Variants ..........
64
... The Tax Tab in the MIRO Transaction ...
44
.......................................... Aggregation ..........................................
64
.................................. Define Start Logo ..................................
65 65
......... Set Check for Duplicate Invoices .........
65
4.6
................................ Document Parking ................................
65 65
4.7
....................................... Invoice Block .......................................
65
Moving Average Price/ 45
The Difference Between Standard
2
63 63
Activate Direct Posting to
....................................... Standard Price .......................................
3.6
63 63
Configure Vendor-Specific
41
Regular Maintenance of the .................................. Clearing Account ..................................
62 62
Define Mail to Purchasing When
40 40
Using MR11 to Manage the ....................... GR/IR Clearing Account .......................
62 62
Edit PO Supplement Text Text in
40 40
Sample Scenarios of the Use of the ....................... GR/IR Clearing Account .......................
62
................................... Pricing and MAP ...................................
45
Advantages of Each Option ..................
45
Determine Payment Block ....................
66
................................. The Payment Run .................................
46 46
.............................. Set Tolerance Limits ..............................
66 66
................................ The Parameter Tab ................................
46 46
............................. Item Amount Check .............................
68 68
The Free Selection Tab
........................ ........................
48 48
.................................. Stochastic Blocks ..................................
68 68
......................... The Additional Log tab .........................
48 48
4.8
............ Clearing-Account Maintenance ..........
69
............. ... The Printout/data medium tab ..........
48
4.9
....... Invoice Verification in Background .......
69
© Galileo Press 2006. All rights reserved.
Contents
4.10
Electronic Data Interchange .................
69
4.11
Message Determination .......................
69
4.12
.......................... Define Document Life ..........................
70
4.13
............... ....... Authorization Management. ..........
70
4.14 4.14
Maintain Customer Exits and Business Add-Ins .................................
70
4.15
..... Logistics Invoice Verification: Index .....
70
4.16
............................................... .. Summary .............................................
70
.......................................... .............................................................. ....................
71
Index
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3
Preface
There are many organizations that have implemented
Whether you are about to implement the invoice veri-
SAP and suffered from problems and confusion relat-
fication function, or you have already done so, you will
ing to the invoice verification functionality. Many of the
find this book informative, even if you don’t believe you
implementations I have seen get it very wrong and the
are having any problems with the functionality.
result is a function that is seen as inefficient, complex and time consuming. This does not have to be the case. If you spend time understanding exactly what the SAP
Acknowledgments
functionality is trying to achieve and how to use the stan-
This book is dedicated to my grandchildren: Stephen,
dard functionality to the fullest, you will reduce the risk
Harvey, Rupinder, Balvinder, George, and one more
of problems and find that the functionality is better than
who's on the way. To my precious wife Joan, and to all
it appears to be initially.
of our children, who constantly make me so glad to be a
This book begins by explaining the basic process in a
part of their lives. And to all of my colleagues, who have
non-technical manner. Other chapters focus on the func-
endured my terrible sense of humor. I would also like
tionality in detail and show how to configure each option
to thank my editor, editor, Jawahara Saidullah, for the help and
to obtain the maximum benefits. It shows the many use-
occasional crack of the whip that helped me complete
ful features available that are often overlooked and it
the book.
explains some common misconceptions about certain options that are available and guides you to the correct choices.
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5
1 What is Invoice Verification?
Invoice verification allows you to capture the details of
important to include as few steps as possible in the pro-
vendor invoices. If the details of an invoice match the
cess, considering that the process of handling payments
expected details that are specified by any related pur-
does not in itself add value to the company or to the
chase order and goods receipts, the invoice can be
vendor.
automatically made available for payment. Unmatched invoices are excluded from the payment run and need
The Main Steps
to be investigated and released before payments can be
The main steps included in the process are:
made. If this process is overly complex or conducted inef-
The capture of the vendor’s invoice details
ficiently, payments made to vendors will be late. Possi-
The matching of those details to the details that we
ble consequences of this include a loss of cash discounts
believe to be correct
and even losing the vendor account and having purchase
The investigation of any mismatches
orders rejected by the vendor.
The release for payment of matched invoices
The accounting entries involved ( including taxes and
It is essential, therefore, to understand the basic pro-
delivery costs )
cess of invoice verification before you design or modify it. The standard process provided by SAP is very likely
The details recorded for audit purposes
suitable for most businesses, though this may not appear to be the case at first. The standard process has many
It is important to keep these steps to a minimum and the
configuration options and is normally more than flexible
SAP processes do achieve this. Additional steps are coun-
enough to cater to the needs of an invoice-verification
ter-productive ter-productive and add little li ttle or no additional value.
department. You You are most likely to succeed if you adopt
Capture and matching occur i n one transaction ( transtrans-
the standard SAP process, rather than trying to alter
action MIRO ). This also includes the automatic release
the SAP process to fit your current functionality. Most
for payment if the match is successful. Figure 1.1 shows
problems are caused by a misunderstanding of the stan-
the main screen of the MIRO transaction.
dard SAP Invoice Verification process, process, and this leads to a
The handling of mismatched invoices occurs in transac-
design that is a compromise. So we will start with a high-
tion MRBR, MRBR, which also includes the release for payment if
level view of the process.
the invoice is successfully matched. Figure 1.2 1.2 shows the main selection screen of the MRBR transaction
1.1
High-Level Process
The accounting entries are updated when the values are posted ( in both transactions ), as are the records of
The main aim of any invoice-verification process is to
events for audit or inquiry purposes. Effectively these two
ensure that vendors are paid the correct amount at the
transactions are the main steps involved. The only other
right time ( not too late l ate but also not too early ). The pro-
transactions needed to manage the process are inquiry or
cess should have a high incidence i ncidence of first-time matching,
cancellation transactions. If you have built your process
to ensure that as little time as possible is spent trying to
to include more steps than this, you may be adding extra
manually match invoices that appear to be incorrect. It is
complexity for little or no extra value.
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7
1 What is Invoice Verification?
Transaction Screen Figure 1.1 Main MIRO Transaction
Capturing the Invoice Details This step uses transaction MIRO and is the main step in the process. If the details on the invoice match the details of what we believe to be owed to the vendor, then this transaction completes the process and passes the details to the payment run to ensure that the vendor is paid at the correct time. No further steps are required if the invoice matches here. While this is an important transaction, it does not need to be carried out only by senior financial staff. This is a common misconception. The Use of Invoice Verification This transaction is designed to be used by any member of the financial staff, however junior that person may be. The reason for this becomes clear when you see exactly what this transaction is doing. Its main purpose is simply Figure 1.2 Main MRBR Transaction Selection Screen
to capture the details from the invoice sent in by the vendor, even though it appears to do much more than this.
8
© Galileo Press 2006. All rights reserved.
1.1 1.1 High-Level Process
Figure 1.3 Sample Completed MIRO Screen
Figure 1.3 shows the MIRO main screen with the details
cess as a method of capturing the invoice details, with
completed.
the rest happening automatically. If the invoice matches,
The system will then use those details to attempt a match against what we believe the vendor is entitled to;
then it is passed for payment. If it does not match, the details are still captured but the payment is blocked. blocked.
only if this matches will a payment be proposed. Figure 1.4 shows the traffic light icon and zero balance that indi-
Processing Mismatched Invoices
cate that the invoice match is successful.
The standard way of managing mismatched or blocked invoices in SAP is to use transaction MRBR. MRBR . Mismatched invoices are those where the details on the invoice do not match the details expected according to the purchase
Traffic-Light Icon and Zero-Balance Indicating Successful Figure 1.4 Traffic-Light Invoice Match
order. This transaction lists all of the invoices that have been blocked for payment. payment. It gives full details of what is blocked, what value is involved, why it has been blocked,
Some people assume that selected finance staff should
when, and by whom. Figure 1.5 shows a typical list of
use this transaction only because the operator can change
mismatched invoices displayed using transaction MRBR.
details on the screen to match the details on the vendor’s
If investigation shows the vendor’s details were cor-
invoice. This occurs when the operator is entering the
rect, then the details of the purchase order or goods
details and the vendor is i s asking for more ( or less ) than
receipt should be corrected so that the invoice details
the amount we believe is due. But if you remember that
match. MRBR will automatically release that invoice for
this transaction is really just capturing the details from the
payment once the reasons for the block are no longer
invoice, then you realize that changing the details is not
valid, but only if you schedule MRBR as a regular job to
actually authorizing any payment. In fact, this transac-
release all invoices that no longer mismatch.
tion doesn’t even require human input; it can be carried
If the blocks are still valid—that is, if we disagree
out using scanning equipment and appropriate software
with the vendor’s details—then the invoice can remain
( in fact several organizations already use this method to
blocked for as long as required, or until a credit note has
enter invoices into SAP ). So you must think of this pro-
been posted. If, in certain unusual circumstances, the
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9
1 What is Invoice Verification?
Figure 1.5 MRBR List Screen Showing Mismatched Invoices
vendor’s invoice details are correct but we cannot change
When posting an invoice, the system will fill in most
the purchase order or goods receipt details to ensure a
of the data for you. The data normally is taken from the
match, we can use MRBR to remove blocks manually
purchase order referenced in the purchase order field on
and release invoices even though they do not match. For
the main screen of transaction MIRO, MIRO , and so this may
this reason, MRBR is a transaction that must be limited
not match the actual details from the invoice. This means
to selected people in the business. These must be peo-
that when the system adds up the line items and com-
ple with authority to write a company check, as they are
pares the result against the total value you entered in
effectively paying a vendor for something that we have
the Amount field of the basic data tab, it will not add up
indicated that we do not owe them for.
mathematically. To post the invoice, you must make sure that the
1.2
Handling Mismatched Invoices
value of the line items adds up to the Amount field value ( with taxes considered ). This means that you will have to
There are two main situations in which you have to deal
change the quantities and values that the system has pro-
with mismatched invoices. These are:
posed in order to match the quantities and values speci-
During input ( in MIRO )
After the input of the invoice
fied on the vendor’s invoice. Figure 1.6 shows the MIRO main screen with the Amount field entered and the line details proposed by the system, based on data taken from
Mismatches During Input ( MIRO ) The MIRO transaction performs two main checks:
the referenced purchase order. order. This is where some people mistakenly get the idea
The first ensures that the details entered add up
that changing these values is somehow authorizing the
mathematically.
payment. payment. In reality, it is simply ensuring that the system
The second checks to see if the invoice i nvoice should be
knows the details of the invoice so that a match can be
blocked or made available for payment.
attempted. Think of it this way: If the system did not try to help by filling in the expected quantities and values,
The second check relies on the majority of the configu-
then you would have to enter them manually every time.
rable invoice tolerances. tolerances. After all, a mathematical check
All that is happening is that the system is trying to save
is not meant to deliver approximate results. Having said
time for you by filling in what it thinks the invoice should
this, there is one tolerance that relates to the first check,
contain. So changing these values is not authorizing pay-
and is known as the manage-small-differences manage-small-differences tolerance. tolerance.
ment, merely indicating what the vendor is asking for.
This is designed to control the allowed rounding errors
The second check is where the main tolerances play a
( mainly during tax calculations ). So, if the documents
part. If the differences dif ferences are within the tolerances, then the
mathematically match within the configured tolerance,
invoice is posted and the payment is not blocked. blocked .
the system can then accept this as a rounding error and
If the differences are outside the tolerances, then the
allow the process to continue to the next stage, where
invoice is still posted but the payment is blocked. So tol-
the remainder of the invoice tolerances can be checked.
erances really only control whether the payment is to be
10
© Galileo Press 2006. All rights reserved.
1.3 Processing Pro cessing Blocked Invoices
blocked; they do not control whether the invoice can
the VAT is 350, but the value from the purchase order
be posted ( apart from the rounding tolerance, i.e. small
( price multiplied by un-invoiced receipts ) does not add
differences ). Figure 1.7 shows an invoice that does not
up to this value. Therefore, Therefore, the invoice cannot be posted
balance mathematically. The invoice total is 2,350 and
because of this mathematical discrepancy.
Figure 1.6 MIRO Screen Showing Data Obtained from Referenced Purchase Order
Figure 1.7 Invoice Failing Mathematical Check
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1 What is Invoice Verification?
1.3
Processing Blocked Invoices
When an invoice has been blocked for payment due to a
Caution: Only use MRBR to process blocked invoices, to avoid corrupting the data used by MRBR.
mismatch that is outside the invoice tolerances, all that is different from an invoice that has not been blocked for
Using Workflow when Mismatches Occur
payment is the setting of the payment blocking flags. flags . Fig-
Someone will have to investigate when an invoice is
ure 1.8 1.8 shows an invoice invoic e with a payment-bloc payment-blocking king flag ( In
blocked during MIRO, but how are they informed that
this case an R to indicate an invoice-verification block ).
there is a problem and what caused it? Many organiza-
The financial postings are the same. The value is still shown
tions simply photocopy the invoice and pass it to the
as an open item on the vendor account, account , so any effect
appropriate department with a handwritten explanation
on the moving average price ( or price variance account )
of the problem. This works well enough if the volumes of
will still occur, even if the document is blocked. The only
invoices that are posted are low and only a few people
action that is required to process blocked invoices is to
are involved in the investigations. This keeps it simple
decide if the blocks should be removed. There are two
and is often the best way.
ways to remove the blocks, both using transaction MRBR These are:
However, if the volumes are large and/or many people are involved in the investigations, then a more sophisti-
Manually, Manually, by indicating which block or blocks are to
cated solution is required. This is where workflow plays a
be removed
very useful part in the process. MIRO can trigger a work-
Automatically, Automatically, by running MRBR with the automatic
flow message ( normally an SAPmail or email message
release flag set on
that can be formatted to suit your needs ) to an appropriate user whenever a mismatch occurs. This is normally a request to correct a price or complete a g oods receipt to make the details match the invoice. The usual response to these messages is to carry out the change or to reply stating that the details are correct and the vendor’s invoice should not be paid. This is a standard option in SAP and requires minimal configuration and setup, ideally with the help of your workflow consultant. Using MRBR MRBR should be checked regularly, and this transaction should be seen as the sole transaction for managing the release of blocked invoices. invoices. You can list blocked invoices
Figure 1.8 Payment-Blocking Flag
by vendor, vendor, by date, by purchasing group, group , or by user, among other criteria. The system will then display the
Many people make the mistake of simply removing the
blocked invoices that match the selection options, and
blocks using a financial transaction such as FBL1N. FBL1N . This
you will then be able to release invoices manually. manually. Figure
removes the flag and allows a payment to be made,
1.10 shows an example of the screen used to manually
but it does not process the blocked record properly, so
manage blocked invoices.
the items still appear in the blocked invoice transaction
This should only be necessary when you do not wish to
( MRBR ) even after they have been released. Figure 1.9
change the purchase order to correct the price or when
shows the FBL1N screen that should not be used to man-
you wish to pay for the items even though a receipt may
ually release invoices.
not be have been fully posted. To To release an invoice, you can either select individual blocking reasons ( quantity, quantity,
12
© Galileo Press 2006. All rights reserved.
1.4 Parking Invoices
Figure 1.9 Initial FBL1N Transaction Screen
Figure 1.10 Mismatched Invoices Displayed Within Transaction MRBR
price, date, etc. ) and remove the block, or simply release
because the goods receipt has not yet been posted and
the whole invoice.
then the goods receipt is posted, the invoice will not be automatically released for payment. However you can
Note: You cannot release part of an invoice for pay-
use transaction MRBR in a scheduled job with the flag
ment. The invoice is either blocked or available for
Release automatically set on, and this will then release all
payment in total.
invoices where the blocking reason is no longer relevant. This will then act the same as an automatic release, but
Automatic invoice release
will only release when the job has run. Ideally, this should
There is actually no setting for automatic invoice release
be at least once a day. Figure 1.11 shows the position of
for payment as such. If you have an invoice that is blocked
the flag on the initial screen of transaction MRBR.
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13
1 What is Invoice Verification?
There are two main ways to park an invoice. The most common is to decide partway through posting an invoice that you wish to exit and save your work done so far without processing the invoice. To do this, you can use the menu option Edit > Switch to Document Parking. Parking. This will allow you to save the work you have done so far without the document being posted. The other option is to start off by using the Invoice Parking function directly, instead of MIRO, using transaction MIR7. MIR7. This is used in situations where you know that you will not want to process the invoice at this stage. Figure 1.11 Release Automatically Flag in MRBR Initial Screen
Figure 1.12 shows the initial screen of the MIR7 invoiceparking transaction. Note how similar this is to the MIRO
1.4 Parking Invoices
screen. This is where some implementations misuse the func-
The Invoice Parking functionality provided by SAP has a
tion. Sometimes people interpret the Invoice Parking
very specific purpose, and if you are using it for this pur-
function as an integral step in the process. It does appear
pose then it functions well. If, on the other hand, you are
that all invoices could be posted as parked first, and then
using the parking process as a specific step in the nor-
someone else ( perhaps someone more senior ) could
mal processing of invoices, then you may find that it is
process the parked invoice into a fully processed invoice.
not designed for this purpose and you may experience
This can be done, and I have seen it used in this way in
problems.
some implementations, but you have to keep in mind
The function has been provided to address situations
that it was not designed to be used in this way and so is
where, for whatever reason, the user does not wish to
unlikely to function in the way you hoped. In the imple-
complete the invoice-verification transaction but wishes
mentations I have seen, parking was excessive because of
to keep the data entered so far. This This is ideal if a complex
overuse of the goods receipt-based invoice verification
invoice is being processed and there is not enough time
flag ( covered in detail in Section 2.1 ).
to complete the transaction. The data entered so far can be parked and returned to at a later stage.
Transaction Figure 1.12 Initial Screen of the MIR7 Transaction
14
© Galileo Press 2006. All rights reserved.
For instance, you can view and monitor parked invoices using transaction MIR6, MIR6 , the Invoice Overview
1.5 Workflow in Invoice Verification
function, but there is no ideal transaction that ensures
The workflow function can be used throughout the
that all parked documents are processed in a timely fash-
SAP functionality and is not restricted to certain events
ion. This can result in some invoices being overlooked.
or transactions. However, you will find that in some stan-
This is not a failing of the SAP system, but occurs because
dard transactions SAP has integrated basic workflow
this is not the purpose of the function. Figure 1.13 shows
functionality. Invoice verification is one example of this.
you how to view or manage parked invoices with trans-
SAP has a pre-defined workflow template WS20000397,
action MIR6.
specifically for the management of mismatched invoices. invoices.
Some implementations then tie in workflow functions
The standard workflow function in invoice verification
to manage the processing of parked invoices, and this
is designed to be used to send a workflow message ( there
adds to the complexity. complexity.
is no specific layout for this message; you can word and
However, if the whole Invoice Verification function is
format it as required ) via email or SAPmail to a user The
fully understood, then you are unlikely to find any benefit from using it in this way. The incorrect use of the GR
user would be informed that the invoice did not match
based Invoice verification flag often leads to a need to
Full details of the purchase order can be included in the
park far more invoices than necessary.
message, and further processing can be carried out within
and be told if it was due to a price or quantity variance .
the message ( to go to the purchase-order purchase-order change function or the goods-receipt function, directly from within the message ). This function can be very useful when several people are responsible for purchase orders and goods receipts. If staff requirement are low, then it may be easier to just send a photocopy of the invoice in the internal post with the details of the problem. The workflow process can be configured to use various methods of determining to whom the message should be sent. It could be the user who created the purchase order, the requisitioner, requisitioner, or the person responsible for posting goods receipts at the plant or storage location on the purchase order. If there are complicated rules to be followed, then this can be achieved by basic Advanced Business Application Programming Programming ( ABAP ABAP ) coding. ABAP is SAP’s programming language. All in all, the workflow function is seen as being very Figure 1.13 MIR6 Transaction Used to Display and Manage Parked Invoices
useful. It should be considered not only a user-friendly function, but also a good method of ensuring that mismatches are handled quickly and by the appropriate
1.5 Workflow in Invoice Verification
person, without the possibility of omissions due to lost paperwork, or other issues.
Workflow is a very useful tool within SAP. Some people
As for developing workflow solutions in other areas
describe it as event-triggered messaging, but I prefer to
of invoice verification, or anywhere else in SAP, I have a
refer to it as event-triggered events. Basically, you can
word of warning. The functionality offered by workflow
use workflow to send a message when an event occurs,
can dramatically improve many processes, and it can be
or you can trigger an action or another transaction transaction when
used to make the system capable of other very useful
an event occurs.
functions, but it does have an overhead and that is the technical maintenance. This is a small price to pay, but
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1 What is Invoice Verification?
it has to be considered when determining if workflow is
ageable, but the biggest problem with workflow is that it
appropriate.
is so useful that many areas can benefit from its use. This
It is possible for f or workflow records to occasionally have technical problems, and this may result in the message
can result in delays during implementations due to the additional design, building, and testing involved.
not being received or processed by the user. This will leave an unprocessed record that has to be resolved by someone with significant workflow skills. If you multiply
1.6 Summary
this possibility by the number of messages that are trans-
Invoice verification in SAP is a solid and efficient process.
mitted, then this problem-resolution can become almost
But do try wherever possible to use the standard SAP
a full-time task.
functionality as covered in this chapter. This will ensure
Other problems, such as unexpected combinations of
that you gain maximum benefits for the least effort.
data, can also result in unprocessed messages. Thus, the
In Chapter 2, we will be looking at the functionality
more workflow you use the more need you will have for
in more detail, and this should enable you to design an
appropriate support when it goes wrong. This is all man-
invoice-verification process to suit your needs.
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© Galileo Press 2006. All rights reserved.
Index
A
B
ABAP 15 account assignment 55, 56 account assignment assignment category category 22 account check 59 account configuration 58 accounting documents 61 accounting processes 54 accounting view 45, 59 59 account modifier 58, 59 59 account numbers 54 actual payment payment date date 61 additional charges charges 26, 36 additional invoice 26 additional lines on the invoice invoice 64 additional Log 48 aggregation 64 allocations 22 allowed invoice interval on the purchase order 67 amount field 36 amount for item with with order reference reference 67 amount for item without order reference 66 amount of blanket blanket purchase order 67 Application area 59 archiving 70 authorization 70 authorized 28 authorizing the payment payment 10 automatic account determination determi nation 22, 31, 39, 55 automatic clearance 42 automatic credit credit note 62, 63 automatic date date calculations 35 automatic invoice reduction tolerance tolerance 63 automatic invoice release release 13 automatic payment 66 automatic postings 31 automatic release 19
BACS 47 balances 24 bar Code 63 basic data 10 Basic data tab 31, 44 batch job 19 batch runs 52 bill-of-lading 19 blanket purchase order time limit exceeded 67 blocked 9, 10, 19, 24, 24, 26, 28, 29, 30, 40, 41, 65 blocked for payment 9, 17, 17, 18, 60 blocked invoices 12 blocking flags 12, 39 blocking reasons 12 block parked invoices 65 BOMs 33 bulk materials 42
C calculate tax 44 calculate taxes taxes automatically automatically 62 Calculate tax flag 36, 44 cash-flow 27 cash discounts 61 chart of accounts 57, 57, 59 check-limit flag 63 check for Duplicate Invoices 65 check of Referenced G/L Accounts 59 city 54 clearing account 31, 40, 42, 69 clearing document 43 clear manually 42 company code 26, 27, 27, 43, 46, 55, 59, 60, 62, 63, 65, 66, 68, 69, 70 complaint document 62 complex invoice 14 condition types 22, 23, 24
Configure Automatic Automatic Postings Postings 52 consignment stocks 32 correction ID 30 credit note 9, 30, 31, 31, 35, 36, 41, 41, 62 credits 58 Customs 21, 39
D dates 26 date variance 68 deadlines 47 Debit/Credit 58 debits 58 default codes 44 default tax codes codes 62 Define Attributes of System Messages Messages 52 define tax jurisdiction 54 delivery delive ry 19, 20, 21, 24 delivery-note delive ry-note 17, 17, 19 delivery delive ry charges 21, 22, 24, 25, 36 delivery costs costs 24, 45 delivery date date 26, 68 delivery note 64 delivery surplus 42 delivery tab 34 different tax tax codes 44 Direct Posting to G/L Accounts and Material Account 64 discounts 47 document types 61, 63, 69
E early payment to a vendor 68 EDI 69 email 12, 15, 63 error-message 28, 52 ERS 19, 28, 32, 32, 42, 43 exceed amount, quantity quantity variance 67 exchange rate 47
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Index
exchange rate rate differences differences 62 exchange rate table table 62 exclude items due for payment 48 exclude values 48
F F110 46, 49 F110S 46, 49 FBL1N 12 Financial Accounting Accounting menu menu 52 financial postings postings 12, 39, 42 form small differences automatically 27, 27, 67 free Selection 48 freight 21, 22, 39, 42 freight provisions 54 full payment payment run 49
G G/L account account 55, 58, 59 G/L account account number 56, 58 general-ledger general-l edger account 25, 31, 31, 39, 59 general ledger 39, 54 54 general modification 58 goods-receipt 15, 23, 29, 32, 32, 35, 45, 46, 60 goods-receipt-based goods-receipt-based invoice verification 17 goods-receipt/invoice-receipt goods-receipt/invoice-receipt clearing account 39 goods-receipt flag 34 goods receipt 9, 12, 13, 17, 17, 18, 19, 20, 24, 28, 41 goods receipt-based invoice verification 14 goods receipt/invoice receipt (GR/IR) clearing 54 goods receipt/invoice receipt (GR/IR) clearing accounts 25 goods receipt/invoice receipt clearing account 40 GR (Goods Receipt) flag 68 GR-based IV flag 18, 20, 40 GR/IR clearing account 40, 41, 41, 43, 58 GR based IV flag 19, 20 GR flag 35 group similar plants plants 56
H Handling Mismatched Mismatched Invoices Invoices 10 header conditions 24 header delivery delivery costs costs 24 header text 38 header text text types 63 help-text 51
I identification code 46 IMG 52 IMG Projects 52 Info Record 21, 29, 32, 33 “information” message 54 input mode 59 input of material number number 59 input of valuation class 59 insurance 21 inter- or intra-company intra-company purchases purchases 28 invoice-relevant notes 38 Invoice amount acc. to vendor vendor 31 invoice overview 14 Invoice qty acc. acc. to vendor 31 invoice quantity 27 invoice reduction 30, 62, 63 invoices posted in the background background 69 invoice surplus 42 Invoice tab 34, 43 43 invoice tolerances 10 invoice value 28 Invoice Verification Verification text 38 invoicing plan 34 item category 68 item conditions 24 item List Variants 64 item text 37
L last movement before before key date 42 layout of the line display display 64 leases 33 liability account 32 line items 10 Logistics Invoice Invoice Verification Verification 52
M Maintain Number Assignments for Accounting Documents 61
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Maintain Variants Variants for Aggregation Aggregation List 64 manage small small differences differences 44 manage small small differences tolerance tolerance 10 manual blocks 66 MAP 27, 27, 30, 32, 36, 43, 45, 46, 52, 59, 68 matched invoice 39 material 21, 64 material document 20 material master 45 material master record (Accounting View) 22, 56 material price 21 materials-management materials-management postings postings 39 material types 56 maximum cah discount discount 70 memos 37 message-determination message-determination configuration configuration 63 Message Determination 69 message number 53 messages 52 MIGO 19, 24 MIR6 14 MIR7 14 MIRO 7, 8, 10, 29, 43 mismatch 12, 30, 30, 65 mismatched invoices 9, 15 modifications 70 movement type 58 moving average average price 12, 25 Moving average average price variance variance 68 Moving average average variance variance 27 MR11 41, 43 MRBR 7, 9, 12, 19, 30, 69 MRIS 34, 35 MRKO 32, 33 MRRL 29 multiple companies 46 multiple company company codes codes 65 multiple tax tax codes codes 44
N net 45 net price 35 net proposal 45 next payment payment run run 47 No ERS flag 29 non-invoiced receipts receipts 40, 42 non-valuated receipt 34 notifiable texts texts 38, 63 63
Index
notifiable text text window 38 number ranges 61
O open account account item 70 open item 12, 32 Options 59 output type 29 overcharge 30, 44, 66 overpaid 18, 26, 28 overpayments 66
P paid on on time 18 parameter tab 46 park 18, 20, 69 partial delivery 40 partial invoicing invoicing plans 33 partial payments 33 payment 24, 27, 27, 39 payment block 65 payment differences 70 payment logs 48 payment methods 46 payment run 8, 29, 46, 47, 47, 61 payment run date 46 payment schedule 35 payment terms terms 28, 30, 61 Percentage Percentage OPUn variance with IR before GR 67 periodic invoice plans 33, 35 pipeline liabilities 33 pipeline materials materials 32, 33 planned delivery charges charges 21, 21, 22, 25 planned delivery cost cost 67 plant 15, 54, 55, 55, 56, 58, 58, 59 posting date 30 postings 39 price calculation calculation schema schema 24 price control 45 price differences 44 prices 26 price variance 36, 39, 54, 62, 62, 63, 67 price variance, estimated price 67 price variance account account 12, 32, 43, 45, 46 pricing conditions 21 pricing scales 24 printout/data medium 48 print program 48
profit and loss 45 proposal flag 49 proposal run 49 proposed payments 49 purchase order 9, 10, 12, 15, 17, 17, 19, 20, 21, 23, 24, 25, 27, 28, 32, 33, 37, 43 purchase order header 37, 37, 38 purchase order header header text 38 purchase order history history 36 purchase order price price 18 purchase order reference reference 37 purchase prices 45 purchasing configuration 24 purchasing data 29 purchasing group 12
Q Qty Var. Var. Less Than/Equal To 42 quantity 20, 21 quantity invoiced 40 quantity received received 28, 40 quantity variance variance 15, 19 quantity variance when when GR qty = zero 67
R random block 68 rate type M 47 RE 61 receipt 22, 39 reference 46 reference document 19 reference document number number 65 regular payments 33 release automatically 13 released 21 release invoices 10, 12 12 rentals 33 requisitioner 15 RN (net) 61 rounding 11 rounding errors 10, 27, 27, 44 royalty and and license payments 33 rules 57, 57, 58 rules of accounting 54
S SAP help 70 SAP Invoice Verification Verification process process 7 SAPmail 12, 15, 15, 63
SAP Reference Implementation Guide Guide 52 scanning 9 schedule the payment run 46 scheduling the payment run as a batch job 49 self-billing 19, 32, 32, 35 Set Item Amount Check 68 settlement program program 29, 32 set value payments 33 simulate postings 59 simulation 55, 58, 59, 60 small differences 11, 26 small differences differences account account 63 small variances 42 spot check 68 SPRO 51 staged payments payments 33, 34 stages 34 standard accounts accounts postings postings 39 standard messages 53 standard price price 43, 45, 59 Start Logo 65 status 69 status screen 49 status tab 49 stochastic block 68 stock account 22, 25, 26, 32, 32, 36, 39, 40, 41, 43, 45, 46 storage location 15 subsequent credit 35 subsequent debit 26, 35, 36 summarized invoices 17 summary reports 49 switching off a message message 52
T tax 19, 27, 27, 31, 31, 43, 62 tax accounts 39 tax amount 44 tax calculations 10 tax code 43, 44, 62, 62, 69 Tax Jurisdiction Jurisdi ction 52 tax procedures 43 test mode 35 test runs 48 text element 38 three-way matching matchi ng 17, 17, 18, 19, 22, 24, 26, 28 tolerance 27 tolerance group group 63, 70
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Index
tolerance keys 27 tolerance limits 66 tolerance percentage percentage and/or value 63 tolerances 10, 20, 26, 63, 65 65 too early 26 total value 18 traffic light 9 transaction/event key 56, 58, 59 transaction event key 31
U undercharged 44 unmatched invoice 39 unplanned delivery charges charges 25, 26, 36 36
74 © Galileo Press 2006. All rights reserved.
unplanned delivery costs costs 21, 21, 62 VAT 27, 29 upper and lower limits for percentage and VAT code 43 value 66 vendor 12 user exits 70 Vendor-Specific Tolerances 63 Vendor-Tolerance Vendor-Tolerance Group 63 vendor account 12, 32, 39, 40 V vendor master record 29, 63 vendors invoice invoice number 65 valuation area group group 55, 56, 58, 59, 59, 60 valuation class 55, 56, 58, 58, 59 valuation modifier modifier 55, 58 58 value-only h credit credit 36 value only invoice 36 Value Variance Less Than/= To To 42 Var. Var. from condition conditi on value 67 variances 25
W warning message 27, 27, 52 workflow 12, 15 write-offs 39 WRX 58
