AP Invoice & Credit Note Processing

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Unit 3: Invoice and Credit Note Processing

SAP-ERP

Accounts Payable Version 1.0


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Course Agenda

Unit 1: Introduction

Unit 2: Master Data


Unit 4: Payments

Unit 5: Inquiries

Unit 6: Reporting

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Unit Objectives

At the completion of this unit, you will be able to:

Understand non-Purchase Order and Purchase Order related invoice and Credit Memo processing.

Perform non-Purchase Order related invoice and Credit Memo processing

Perform purchase invoice processing through Logistics Invoice Verification

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Transaction Codes

Finance module- Non-Purchase order related invoices

AP Invoice Entry FB60

AP Credit Memo Entry FB65 Note: Credit memo via FB60 if triggering workflow

Document Change FB02

Document Display FB03

Document Reverse FB08

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Key Terms

2 Way- Match Concept

3 Way-Match Concept

Logistics Invoice Verification

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Purchase Order related

2. Process PO related vendor documents

4. Process non-PO related vendor documents

Yes

No

Materials Management Module

Finance Module

1. Purchase made from vendor

5. Internal controls used in verification

3. Invoice verified against PO and GR or approval obtained

SAP R/3 Process

Represents a manual process outside of LIMS

Represents a process within LIMS

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In Summary – PO Related Invoices

2. Goods Receipt

4. Payment1. Purchase

Order

5. FI documents created to record Dr and Cr entries

3. Invoice Receipt

3 Way Match Concept

Two way match concept

1. Purchase Order

2. Invoice Receipt

2 FI documents created to record Dr and Cr entries

3. Approval obtained

4. Payment

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Non-PO Related Invoices and Credit Memos

Invoices and Credit Memos not requiring a Purchase Order are entered directly into SAP through the Accounts Payable module.

Approvals: Can be approved before they are entered into SAP R/3. Can be entered and blocked for payment then trigger non-PO

workflow Examples of purchases that do not require a Purchase Order

are: Utilities Contributions

Note: See Admin Policy 601

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SAP Accounts Payable Module Screen –Non-PO Invoice and Credit Note Processing

Non-PO Invoice Entry Transactions

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Non-PO Invoice Entry (FB60)

Note: May need to set your editing options to make document type

visible

Net doc type: Invoice amount less the discount posts to the expense account

Gross doc type: Full amount posts to expense account; discount taken will post to cash discount account during payment run

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PO Related Invoices and Credit Memos

Invoices requiring a purchase order are entered into the Materials Management module of SAP R/3 through Logistics Invoice Verification in order to verify them against the Purchase Order (PO) and the Goods Receipts (GR).

In SAP R/3, 3-way matching process is known as Invoice Verification.

Invoices which fall outside the price/quantity tolerances are blocked from payment.

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SAP Accounts Payable Module Screen – PO Invoice and Credit Note Processing

Invoice Verification Transactions

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PO Related Invoice – Displaying PO (ME23N)

PO History tab allows you to see

any goods receipts, invoices

posted

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PO Related Invoice – Entry via LIV (MIRO)

Selecting calculate tax tells the system to determine amount, versus you entering it directly

Entry of PO number results in lines below being populated.

Accounting treatment is derived from PO.

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PO Related Invoice – LIV – Details Tab

Freight charges can be entered via the

Unplanned Delivery Costs If remit-to information is incorrect, use Inv. Party to select correct vendor

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PO Related Invoice – LIV – Payment Tab

Note: remember to check the payment terms after selecting a new

remit-to vendor, as this may have changed the terms originally

defaulted form the PO

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PO Related Invoice – LIV – Simulation

Provides overview of the Acctg doc to be posted

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Logistics Invoice Verification

Invoice Verification is the process of entering and checking vendor invoices. The invoices are verified against the Purchase Order and Goods Receipt or an approval is obtained.

In SAP R/3, 3-way matching process is known as Invoice Verification.

Credit memos with reference to a PO are posted to the MM module through the invoice verification process also.

Matching Process:

Vendor Invoice

Vendor Purchase

Order

Goods Receipt or Approval

= =

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Other Accounts Payable Processing Functions

Reverse a Document

Display Documents

Change Documents

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Transactions for Additional Functionality

Display Change Transactions

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Reversing Vendor Invoices

If documents are entered incorrectly, they can be reversed.

Reversing open invoices prevents the invoice from any further processing.

An invoice may be reversed if the invoice has not been selected for payment or a check has not been generated through the payment program.

The invoice must be reversed through the module in which it was posted.

Non-PO Invoices - posted in FI/AP, must be reversed in FI/AP. PO Invoices - posted in MM/LIV, must be reversed in MM/LIV.

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Reversing Documents – Transaction CodesFI/AP Reversal Transactions MM/LIV Reversal Transactions

Note: Currently auto-clear program does not work for MR8M reversals; must clear manually via F-44

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Change/Display Documents

It is possible to change certain fields on a posted invoice or credit note

Reference field Payment Terms Text fields

Similar to reversing a document, an invoice posted in FI/AP is changed in the FI/AP module and an invoice posted in MM/LIV is changed in MM /LIV.

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Display Documents Posted

It is possible to display a list of transactions for a particular user, date range, and/or doc type.

Transaction FB03 (select list will bring up this screen):

Possible Selection Screen

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Unit Recap

Non-PO related invoice and credit memo processing

PO related invoice and credit memo processing

Additional Processing Functionality

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Questions and Answers