MM Invoice Verification and Material Valuation

7/31/2019 MM Invoice Verification and Material Valuation

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© Copyright 1998 SAP AG. All rights reserved.

No part of this brochure may be reproduced or transmitted in any form or for any purpose withoutthe express permission of SAP AG. The information contained herein may be changed withoutprior notice.

SAP AG further does not warrant the accuracy or completeness of the information, text, graphics,links, or other items contained within these materials. SAP AG shall not be liable for any special,indirect, incidental, or consequential damages, including without limitation, lost revenues or lostprofits, which may result from the use of these materials. The information in this documentation issubject to change without notice and does not represent a commitment on the part of SAP AG forthe future.

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Team SAP™, BAPI™, Management Cockpit™ are registered or unregistered trademarks of SAPAG.

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Reference Search..................................................................................................................... 20Selecting Several Transactions ................................................................................................ 21Displaying The Document Overview ........................................................................................ 22Displaying Item Screen............................................................................................................. 23Adjusting an Item...................................................................................................................... 24Simulating Document ............................................................................................................... 25Subsequently Selecting Transactions ...................................................................................... 26

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Parking a Document ................................................................................................................. 28

Displaying a Parked Document ................................................................................................ 29Changing a Parked Document ................................................................................................. 30Posting a Parked Document..................................................................................................... 31

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Posting to a G/L Account.......................................................................................................... 33Posting to a Material Account................................................................................................... 34Posting to a Fixed-Asset Account ............................................................................................ 35

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Example: Distribution among Invoice Items ............................................................................. 46Example: Separate Posting Lines ............................................................................................ 47Example: Sales Tax Not Charged ............................................................................................ 48

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Posting as a Gross Amount...................................................................................................... 53




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Posting as a Net Amount.......................................................................................................... 54

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3XUFKDVH$FFRXQW0DQDJHPHQW Material With Moving Average Price ........................................................................................ 58Material With Standard Price.................................................................................................... 59

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Quantity Variance ..................................................................................................................... 65

Quantity Variance: Checking an Invoice ............................................................................. 66

Quantity Variance: Account Movements ............................................................................. 67

Price Variance .......................................................................................................................... 68

Price Variance: Checking an Invoice .................................................................................. 69

Price Variance: Account Movements .................................................................................. 70

Example: Material with a Standard Price....................................................................... 71

Example: Material with Moving Average Price with Sufficient Stock Coverage ............ 72

Example: Material with Moving Average Price with Insufficient Stock Coverage.......... 73

Quantity and Price Variance ............................................................................................... 74

Quantity and Price Variance: Checking an Invoice........................................................ 75

Quantity and Price Variance: Account Movements ....................................................... 76

Variance in Order Price Quantity.............................................................................................. 77

Variance in Order Price Quantity: Checking an Invoice...................................................... 78

Variance in Order Price Quantity: Account Movements...................................................... 79

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Clearing the GR/IR Clearing Account....................................................................................... 81Account Maintenance with Quantity Variances: Account Movements..................................... 82

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Variances in an Invoice Item .................................................................................................... 85Amount of an Invoice Item........................................................................................................ 87Stochastic Block ....................................................................................................................... 88Manual Block ............................................................................................................................ 89Tolerances................................................................................................................................ 90Validity of the Block .................................................................................................................. 91


Selecting Invoices For Processing ........................................................................................... 93

Selection Criteria ................................................................................................................. 94Processing................................................................................................................................ 95

Settings................................................................................................................................ 96

Processing the List of Invoices............................................................................................ 97

Changing Settings.......................................................................................................... 98

Sorting............................................................................................................................ 99

Searching ..................................................................................................................... 100

Switching to Totals Display .......................................................................................... 101

Displaying Details......................................................................................................... 102

Switching to Item Display............................................................................................. 103




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Canceling Individual Blocking Reasons ....................................................................... 104

Releasing Invoices ................................................................................................................. 105

Individual Release ............................................................................................................. 106Collective Release............................................................................................................. 107

Automatic Release ............................................................................................................ 108

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Posting Credit Memos With Reference in the System ........................................................... 112Credit Memos: Account Movements ...................................................................................... 113

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Referencing Planned Delivery Costs...................................................................................... 122Example: Planned Delivery Costs .......................................................................................... 123Posting Planned Delivery Costs ............................................................................................. 124

Goods Invoice With Planned Delivery Costs..................................................................... 125

Invoice for Delivery Costs Only......................................................................................... 126

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Example: Distributing Unplanned Delivery Costs................................................................... 128Posting Unplanned Delivery Costs With Order Reference..................................................... 129

Goods Invoice Including Unplanned Delivery Costs ......................................................... 130Invoice for Unplanned Delivery Costs Only....................................................................... 131

Posting Unplanned Delivery Costs Without Order Reference................................................ 132

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Account Movements When Posting Delivery Costs ............................................................... 134Clearing Planned Delivery Costs............................................................................................ 135

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Invoices for Purchase Orders With Account Assignment: Default Values ............................. 138Displaying and Changing Account Assignments.................................................................... 139Invoices for Purchase Orders With Account Assignment: Account Movements.................... 140

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Subsequent Debits/Credits: Examples................................................................................... 142Posting Subsequent Debit/Credits ......................................................................................... 143Subsequent Debits/Credits: Account Movements .................................................................. 144

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Entering Invoices in Foreign Currency ................................................................................... 146Exchange Rate Differences.................................................................................................... 148Exchange Rate Rounding Differences ................................................................................... 149

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Displaying Consignment/Pipeline Withdrawals ...................................................................... 154




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Settling Consignment/Pipeline Withdrawals........................................................................... 155Consignment Settlement: Account Movements ..................................................................... 156

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Selecting Transactions ........................................................................................................... 162Processing the Log................................................................................................................. 163

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The SAP system is made up of several components linked together so that different departmentswithin a company can cooperate with one another.

The Invoice Verification component is part of the Materials Management (MM) system. Itprovides the link between the Materials Management component and the Financial Accounting,Controlling, and Asset Accounting components.

Invoice Verification in Materials Management serves the following purposes:

• It completes the materials procurement process - which starts with the purchaserequisition, continues with purchasing and goods receipt and ends with the invoicereceipt

• It allows invoices that do not originate in materials procurement (for example,

services, expenses, course costs, etc.) to be processed

• It allows credit memos to be processed, either as invoice cancellations or discounts

Invoice Verification does not handle the payment or the analysis of invoices. The informationrequired for these processes is passed on to other departments.

Invoice Verification tasks include:

• Entering invoices and credit memos that have been received

• Checking the accuracy of invoices with respect to contents, prices, and arithmetic

• Executing the account postings resulting from an invoice

• Updating certain data in the SAP system, for example, open items and material prices

• Checking invoices that were blocked because they varied too greatly from thepurchase order

The high degree of integration in the SAP system allows these tasks to be carried out smoothlyand efficiently.





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Each invoice contains various items of information. To post an invoice, you must enter thisinformation into the system. If an invoice refers to an existing transaction, certain items ofinformation will already be available in the system. The system proposes this information asdefault data so that you only need to compare it and, if necessary, correct any possiblevariances.

If an invoice refers to a purchase order, for example, you only need to enter the number of thepurchase order. The system selects the right transaction and proposes data from the purchaseorder, including the vendor, material, quantity ordered, terms of delivery, terms of payment. Youcan, of course, overwrite this default data if there are variances. You can display the purchaseorder history to see, for example, which quantities have been delivered and how much hasalready been invoiced.

If there are variances between the purchase order or goods receipt and the invoice, the system

will issue a warning on the screen. If the variances are within the preset tolerance limits, thesystem will allow the invoice to be posted but will automatically block it for payment. The invoicemust then be released in a separate step. If the variances are not within the tolerances, thesystem will not allow the invoice to be posted.

When the invoice is entered, the system also finds the relevant account. Automatic postings forsales tax, cash discount clearing, and price variances are also generated and the posting recordsdisplayed. If a balance is created, the user is required to make corrections, as an invoice canonly be posted if the balance equals zero.

As soon as the invoice is posted, certain data, such as the average price of the material orderedand the purchase order history, is updated in the system.

The invoice posting completes Invoice Verification. The data necessary for the invoice to be paid

is now contained in the system. The accounting department can retrieve the data and make theappropriate payments with the aid of the Financial Accounting component.





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As a rule, an invoice refers to a transaction for which the issuing party requests payment. InvoiceVerification differs depending on the type of invoice involved:

• Invoices based on purchase orders

With purchase-order-based Invoice Verification, all the items of a purchase order canbe settled together, regardless of whether an item has been received in severalpartial deliveries. All the deliveries are totaled and posted as one item.

• Invoices based on goods receipt

With goods-receipt-based Invoice Verification, each individual goods receipt isinvoiced separately.

• Invoices without an order reference

When there is no reference to a purchase order, it is possible to post the transactiondirectly to a material account, a G/L account, or an asset account.




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In Invoice Verification - as in other applications - the SAP system often needs to retrieve storeddata, change this data where necessary, or add new information.

Depending on the type of information, the data in the SAP system is stored in different masterrecords (such as the material master record or the vendor master record). The central storage ofdata prevents redundancy. It also guarantees that the most up-to-date information from thedifferent departments (Material Requirements Planning, Purchasing, Inventory Management,Quality Management, and Invoice Verification) is available for the other areas at all times.

The key data required for Invoice Verification is:

• Master data and

• Transaction data

If an invoice contains a cash discount and taxes, more tax is posted with the invoice than shouldbe, as the cash discount is not taken into account. This happens regardless of whether theinvoice is posted as a gross or as a net amount. Upon payment by Accounting, the tax amount isadjusted automatically, i.e. the tax amount for the cash discount is credited to the input taxaccount.

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Master data is permanent data on objects, such as materials, in the SAP system. Every object isgiven a unique number by which it can be identified in the system.

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Material data is information on the materials bought or produced in the company. This includesthe material number, material name, units of measure, stock data, overdelivery and underdeliverytolerances, reminder keys, price control data, and prices. Material data is maintained by differentdepartments in the Materials Management area.

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Vendor data provides information on the suppliers a company deals with. Vendor data includesthe address, bank data, possibly also the name of the bank head office, the currency of thevendor, as well as the terms of payment and delivery. Vendor data is maintained by thePurchasing and Accounting departments.

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Accounting data is used to define G/L accounts. It includes the account name, the account type,the currency in which the account is managed, information as to whether an account may beposted to directly and which financial budget it is allocated to. The accounting data is maintainedin the Financial Accounting component.

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Transaction data records transactions or events in the SAP system. Whenever you post apurchase order, scheduling agreement, goods receipt, or invoice, the system automaticallycreates a document. The document data of a transaction depends on the application area thetransaction belongs to. Every document receives a document number through which it can beclearly identified.




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A purchasing document contains information such as the vendor number, the purchase orderdate, the terms of delivery, the material number and the order quantity.

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A material document is created when a goods receipt is posted. It includes the posting date, thequantity delivered, and perhaps also the delivery note number and the purchase order numberthe goods receipt refers to. The material document records quantity changes.

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An accounting document is created when a valuated goods receipt or an invoice is posted. Itcontains details of the individual postings with the account number, posting key and the amount.The accounting document records changes in value.




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An invoice contains various information, such as:

• Who issued the invoice?

• Which transaction does the invoice refer to?

• How much tax do you have to pay?

If the invoice refers to a particular transaction, the system will automatically retrieve informationpertaining to the transaction and propose values on the screen for you to check. Information thatcan be retrieved includes:

• Terms of payment

• Quantities to be invoiced

• The amounts the system expects per item

If the vendor’s invoice contains different details, you can overwrite the data proposed. Thesystem checks whether your entries are permissible and will display a warning or other messageif anything is incorrect.

The information known to the SAP system and the fields in which you can enter new informationfrom the invoice are located on different screens.




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In Invoice Verification you pass through a series of screens where you can enter informationcontained in the invoice. The first three screens are:

• The initial screen

This contains general data, such as the company code, currency, invoice reference.

• The vendor screen

This contains data on the vendor, the terms of payment, taxes.

• The selection screen

This lists the items of the transaction specified on the initial screen. The layout of theselection screen depends on whether the invoice is based on a purchase order or agoods receipt.

− Invoice Based on a Purchase Order

All the purchase order items are listed. The quantity that is still to be billed (i.e.the difference between the quantity delivered and the quantity invoiced so far)appears as a default in the 4XDQWLW\ column. The amount proposed by the systemis the product of this quantity and the price from the purchase order.

− Invoice Based on a Goods Receipt

Goods-receipt-based invoice verification must have been defined in the purchaseorder. If the *5,9 field on the item screen in the purchase order is not selected,the goods receipt cannot be settled in this way.

There are two ways of finding the correct transaction in goods-receipt-basedInvoice Verification:

You can enter a delivery note number or a GR document number and the systemwill list the items for the goods receipts on the selection screen;

Or you can enter a purchase order number and the system will list all theindividual goods receipts for the purchase order on the selection screen.




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2UGHU5HIHUHQFHTo check an invoice that refers to a purchase order or a goods receipt, proceed as follows:

1. From the Invoice Verification screen, choose 'RFXPHQWHQWU\ →(QWHULQYRLFH. The

initial screen appears.

2. Enter the required data in the sections 'RFXPHQWKHDGHU and 6HOHFW .

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The date you enter must be within the allowed posting period defined in FinancialAccounting.

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Only make an entry in this field if the invoice document number is not to beassigned by the system. Your system administrator has defined whether thedocument number should be assigned by the user or by the system.

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There are two standard document types in the standard system:

5( The invoice is posted gross

51 The invoice is posted net

(See also Cash Discount Clearing [Page 52])

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In the &XUUHQF\ field, enter the code for the currency in which the invoice wasissued.

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Here you enter the transaction to which the invoice refers, for example, in the3XUFKDVHRUGHU field, enter the purchase order number.

3. Press to display the vendor screen.

4. Enter the required data in the vendor screen.

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Enter the gross invoice amount.

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Enter the tax amount stated on the invoice.

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The tax code indicates the tax type and the percentage rate.

5. To proceed to the selection screen, press ENTER. All items are listed here. The itemsfor which invoices are still outstanding have already been selected by the system. If aselected item is not listed in the invoice, delete the check mark.




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If an invoice has a large number of items, it can be useful to work with the selectionfunctions. These are found in the menu (GLW →6HOHFWLRQIXQFWLRQV. This allows you

to select blocks, select all items or delete check marks.6. From the menu bar, select 'RFXPHQW →3RVW . The system now checks two things:

• Do any quantity or price variances exist for an item? (See also Invoices withVariances [Page 60])

• Does the balance equal zero? If not, you have to correct the document (See alsoAdjusting an Item [Page 24]).

If there are no variances and the balance equals zero, the system posts thedocument. You automatically return to the initial screen. The system confirms theposting and displays the document number in the system.





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There are some additional functions available in the SAP Invoice Verification component thatmay be helpful to you when checking an invoice:

• Reference Search [Page 20]

If the reference number is stated incorrectly in the invoice or not given at all, the SAPsystem helps you to allocate it.

• Selecting Several Transactions [Page 21]

You can check an invoice that refers to several transactions in the system in onestep.

• Displaying The Document Overview [Page 22]

You can display an overview of the invoice items already entered.

• Displaying Item Screen [Page 23]

You can display detailed information on an item.

• Adjusting an Item [Page 24]

You can make corrections to the entries in the overview list or the individual items.

• Simulating Document [Page 25]

You can simulate the posting of the invoice. In addition to the posting lines, thesystem displays what the credit, debit and balance figures for this posting would be.

• Subsequently Selecting Transactions [Page 26]

You can include other transactions in an invoice at any time.

• Preliminary Posting [Page 27]

You can enter an invoice and “park” it without posting it. A parked document can bechanged and posted later on.




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If the purchase order number and/or goods receipt number to which the invoice refers arespecified incorrectly or not at all on an invoice, the system cannot find the transaction. To helpyou find the reference yourself, the system can list all the purchase orders for a vendor ormaterial.

1. In the initial screen, position the cursor on the 3XUFKDVHRUGHU field. Select)3RVVLEOHHQWULHV A pop-up window is displayed in which you can decide whetheryou want to generate a list of purchase orders for a vendor or material.

2. Select a vendor or material. A screen is displayed in which you can enter the vendoror material and further information from the invoice, for example, the plant or deliverydate.

3. Enter the vendor or material. You can limit the list of the purchase orders by making

further entries. Choose3URJUDP→

([HFXWH to generate a list of the relevantpurchase orders with information on how much has already been delivered andinvoiced.

4. You can select a purchase order directly from this list. To do this, position the cursoron the required purchase order and choose 6HOHFWGRFXPHQW . The system selects thepurchase order and proceeds to the vendor screen.

It is also possible to search using delivery notes or goods receipt documents by positioning thecursor and pressing F4 to obtain possible entries.




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If an invoice refers to different purchase orders or goods receipts, you can select the items to beprocessed in one step.

1. From the Invoice Verification screen, choose (GLW →0XOWLSOHVHOHFWLRQ. The systemdisplays a window in which you can select a number of transactions.

2. Enter the transactions to which the invoice refers.

When making entries in the multiple selection screen, please note the following:

a) If you have already entered a single selection, the system will copy this entry overinto the Multiple Selection screen. You can, however, overwrite this entry.

b) Only one entry is allowed in each line, that is, either the purchase order, the GRdocument, or the delivery note.

c) The purchase order in the first line determines the vendor to which the invoicerefers. If another vendor is specified in the purchase order, this vendor is replacedby the vendor in the first line and the system issues a message saying so.

d) If you enter a GR document or delivery note for a transaction for which goods-receipt-based invoice verification has not been defined, the system will ignoreyour entry and will not propose this transaction for selection.

3. To proceed to the vendor screen, press ENTER.




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From the menu bar, select *RWR→'RFXPHQWRYHUYLHZ. The system lists the items entered upto now in the document overview. The first item indicates the vendor to be credited and theamount. The other items are the items selected, each one listed with the corresponding quantityand amount.




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You can display detailed information on an individual item by calling up the item screen. To go tothe item screen, proceed as follows:

• If you are on the selection screen

Position the cursor on the selection field of the item you wish to go to and choose (GLW

→&KRRVH.

• If you are on the document overview screen

Position the cursor on the number of the line required and choose (GLW →&KRRVH.

From the menu bar choose *RWR to proceed to other item screens or return to the documentoverview.




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As long as the invoice has not been posted, you can adjust an item:

• On the document overview screen

• On the item screen

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1. From the menu bar, choose (GLW →2YHUYLHZ → $GMXVWPHQWRQRII . You can nowmake entries in the 4XDQWLW\ and $PRXQW columns.

2. Overwrite the quantities and amounts.

3. From the menu bar, choose (GLW →2YHUYLHZ → $GMXVWPHQWRQRII to reach the

document overview screen. The system first checks your changes and may thenproceed to an item screen to issue a warning message:

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You can proceed to the item screen of the item you want to adjust and overwrite the amount andthe quantity.

Position the cursor on the number of the line required and choose (GLW →&KRRVH.




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When you post an invoice, the SAP system does not automatically display the document created.However, you can already see what the document will look like before you post it by choosing'RFXPHQW →6LPXODWH from the menu bar. The system lists the individual posting lines thatneed to be posted. A line is displayed at the end giving information on how large the debit, credit,and balance will be.




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If you are processing an invoice and find that you have not yet selected a particular transaction towhich the invoice refers, you can select this transaction subsequently. To do this, proceed fromthe document overview screen as follows:

1. From the menu bar, choose (GLW →1HZLWHP→3XUFKDVHRUGHURr (GLW →1HZ

LWHP →*RRGVUHFHLSW

A window appears in which you can make a selection.

2. Enter the required information, i.e. the purchase order number, the goods receiptdocument number or the delivery note number.

3. To proceed to the corresponding selection screen, press ENTER. Select the requireditems.

4. Choose *RWR →'RFXPHQWRYHUYLHZ and you will see that the system has includedthe further item(s) you selected in the overview.

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If you are processing an invoice and have forgotten to select one or more order items, these canbe selected subsequently. From the document overview, proceed as follows:

1. From the menu bar, choose *RWR → 2SHQRUGHULWHP.

The selection screen is displayed. Only the items which you did not previously selectare displayed.

2. Select the desired items.

3. Choose *RWR→'RFXPHQWRYHUYLHZ to return to the document overview which nowincludes the new items.




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You can enter an invoice (or a credit memo) without posting it and simply “park” it.

To park an invoice or a credit memo, you enter the data in the system and save it in a document.The system does not, however, make any postings.

A parked document can be changed as often as you like. When data is added or changed, thechanges are noted by the system. When no further changes are required, you can then post theparked document. Only then does the system carry out the normal account movements andmake the necessary updates.

The preliminary posting function can be of great advantage if:

• You are interrupted when entering an invoice. You can park the document andcontinue processing it later on. This saves you time having to enter the data twice.

• You wish to clear up some questions before you post an invoice. You can park thedocument and continue processing it later on.

• You wish to split the Invoice Verification process. One employee can, for example,park an invoice without checking it, while another carries out the actual checks andposts the document after making any necessary corrections.

You can park invoices that reference both purchase orders and goods receipts as well asinvoices with no reference in the system.

Preliminary posting comprises the following four functions:

• Parking a Document [Page 28]

• Displaying a Parked Document [Page 29]

• Changing a Parked Document [Page 30]

• Posting a Parked Document [Page 31]

When you park a document or change a parked document, neither substitutionnor validation is supported. The system only carries out these functions after youactually post a parked document.




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To park a document, proceed as follows:

1. From the Invoice Verification initial screen, choose 3UHOLPLQDU\SRVWLQJ →3DUN Yougo through the same screens as for entering an invoice.

2. Enter the required data on the individual screens. It does not matter if

a) your entries are incomplete

b) the balance of the document is not zero

The system does not carry out any checks, as a parked document can be correctedlater on.

3. Save the document. The initial screen appears and the document number created isdisplayed.

In addition to moving directly to Preliminary posting, you can also go from the 'RFXPHQW

RYHUYLHZ to Preliminary posting by choosing the function 'RFXPHQW →6ZLWFKWRSUHOLPSVW . Thesystem holds the data you have entered and switches to the document overview screen of the3DUNGRFXPHQW function. You cannot switch back to (QWHULQYRLFH To post an invoice, you firsthave to save your data and then post the parked document.




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To display a parked document, proceed as follows:

1. From the Invoice Verification screen, choose 3UHOLPLQDU\SRVWLQJ →'LVSOD\ . Ascreen appears in which you can enter the document number.

2. Enter the desired document number. Press ENTER to go to the document overviewscreen. From here you can branch to the individual items.

3. If you wish to see the changes that have been made to the document, choose ([WUDV→'RFXPHQWFKDQJHV from the document overview screen




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To change individual items of a parked document or to create new ones, proceed as follows:

1. From the Invoice Verification screen, choose 3UHOLPLQDU\SRVWLQJ →&KDQJH. Thescreen appears in which you can enter the document number.

2. Enter the desired document number. Press ENTER to go to the 'RFXPHQWRYHUYLHZ .

3. You can branch into the individual item screens to make changes or additions. Youcan also create new line items via (GLW →1HZLWHP→ or *RWR→2SHQLWHPV

4. Save the document. The initial screen appears in which you can change the nextparked document.

&KDQJLQJWKHGRFXPHQWKHDGHU To change data in the header of a document, proceed as follows:


Enter the desired document number and choose &KDQJHGRFKHDGHU The documentheader appears.

3. Enter your changes and save the document.

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If you do not want to process a parked document any further, it is better to delete it. Proceed as

follows:


2. Enter the desired document number and choose 'HOHWH The system deletes thedocument and issues a message saying so.




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To post a parked document, proceed as follows:

1. From the Invoice Verification screen, choose 3UHOLPLQDU\SRVWLQJ →3RVWSDUNHG

GRFXPHQW . The screen appears in which you can enter the document number.

2. Enter the desired document number. Press ENTER to go to the 'RFXPHQWRYHUYLHZ .

3. Check the items, if necessary, and choose 3RVW .

The system will now check whether the data is complete and whether the balance iszero.

a) If the balance is zero, the parked document is posted and the system issues amessage saying so.

b) If the balance is not zero, the system issues a message asking you to change theparked document. To see the changes required, choose ([WUDV→0HVVDJHV.




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2UGHU5HIHUHQFHIn Invoice Verification you can also post invoices that do not refer to a purchase order or adelivery. A typical example of this is a bill for expenses.

As in the case of an invoice with a reference, you first need to fill out the data required in theinitial screen and vendor screen. Unlike invoices with a reference, however, you do not receive aselection screen because the system does not have any order or goods receipt transaction forthis invoice. So the system does not know which accounts will be affected by the offsetting entryfor the vendor line item. Therefore, you must specify which accounts the amounts are to beposted to. In the SAP system there are three account types available:

• G/L account

• Material account

• Fixed-asset account

You can also combine these accounts by generating the relevant posting lines one after theother.

To enter an invoice without a reference in the system, proceed as follows:

1. From the Invoice Verification screen, choose 'RFXPHQWHQWU\ →(QWHULQYRLFH. Theinitial screen appears.

2. Enter the document header data in the initial screen. In the 6HOHFW area enter thenumber of the invoicing party in the field 9HQGRU . Press to go to the vendorscreen.

When you enter an invoice with no reference, you may find that the vendor hasnot been entered in the system. In this case you can post to a one-time account.For further information, see alsoInvoices from One-Time Vendors [Page 152].

3. Fill out the vendor screen. Press to go to the document overview screen. Thisnow contains the vendor line you created.

4. Enter the offsetting account.

a) Posting to a G/L Account [Page 33]

b) Posting to a Material Account [Page 34]

c) Posting to a Fixed-Asset Account [Page 35]

5. Post the document.




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To create a posting line to a G/L account, carry out the following steps:

1. From the document overview screen, choose (GLW →1HZLWHP →*/DFFRXQW Awindow appears in which you must enter the following:

a) G/L account

b) Credit or debit posting

2. Press to go to the G/L account screen.

3. In the G/L account screen enter the amount and the account assignment data (e.g.the cost center).

4. When you press the system checks whether the account can be posted todirectly. If so, the document overview screen appears. The system has now createdthe relevant G/L account lines.




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To create a posting line to a material account, carry out the following steps:

1. From the document overview screen, choose (GLW →1HZLWHP →0DWHULDO Awindow appears in which you must enter the following:

a) Material number

b) Plant

c) Valuation type, if applicable

d) Credit or debit posting

2. Press to go to the material screen.

3. Fill out the material screen.

4. Press to go to the document overview. The system has now created therelevant material lines.




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To create a posting line to a fixed-asset account, carry out the following steps.

1. From the document overview, choose (GLW →1HZLWHP → $VVHW A window appearsin which you must enter the following:

a) Fixed asset

b) Asset sub-number

c) Credit or debit posting

2. Press to go to the asset screen.

3. Fill out the asset screen.

4. Press to go to the document overview. The system has now created the

relevant asset line.





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When you post an invoice, the system carries out the account movements and updates thefollowing (See also Account Movements When Posting Invoices [Page 49]):

• The system generates a Financial Accounting document that displays the accountsinvolved in the posting and the amounts posted to these accounts.

• The system creates a purchase order statistic for each item in the purchase order.Each posted invoice is included in this file. In this way, it is possible to display acurrent overview of the purchase order history at any time.

• The moving average price is updated in the material master record if the price of theinvoice deviates from the purchase order price (See alsoPrice Variance: AccountMovements [Page 70]).

• If the invoiced price differs from the price in the purchase order for a material withmoving average price control, the value of the stock is updated in the material masterrecord. (See also Price Variance: Account Movements [Page 70]).




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The cash discount agreements for a vendor can be stored in the vendor master record. They canthen be copied from the purchase order, where they can be changed.

When you enter an invoice, the agreements (from the purchase order, if available, otherwise fromthe vendor master record) are displayed as default values on the vendor screen in the section3D\PHQWFRQWURO . These values can be overwritten.

The following fields also have to be filled out:

• %DVHOLQHGDWH

This field specifies the starting date from which the days for the terms of payment arevalid. The date proposed by the system can be changed, if required.

•

'LVFRXQWEDVHIf the amount qualifying for cash discount is different from the invoiced amount, youmust enter the correct amount here.

• 'LVFRXQWDPRXQW

In this field you can enter a fixed amount which the vendor in the invoice grants as acash discount. If you fill out this field, the system will ignore the displayed terms ofpayment.

• 7HUPVRISD\PHQW

In this field, the system displays a key for the terms of payment, if any are stored inthe system. These agreements come from the purchase order or from the vendor

master record. To the right of the screen, the system displays the actual terms, that is,the period in which cash discount is to be granted, the percentage discount, and thedate on which the invoice is payable net. Both the key for the terms of payment andthe values belonging to the key can be overwritten.

If no values are proposed, you can either enter a key or the days and percentagerates.





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There are two ways of posting the cash discount amounts:

• 3RVWLQJWKHJURVVDPRXQW

If you post the gross amount of an invoice, the system will ignore the cash discountamount when you enter the invoice data. The cash discount amount is posted to aseparate income account when payment is later made.

• 3RVWLQJWKHQHWDPRXQW

If you post the net amount of an invoice, the cash discount amount is credited directlyto the account to which the costs are posted. For example, if you are posting anamount to a cost center, only the invoice amount minus the cash discount amount isposted to the cost center.

You specify the way in which cash discount is to be cleared on the initial screen in InvoiceVerification in the field'RFXPHQWW\SH. In the standard system, there are two document types:

5( Gross posting

51 Net posting

You will find further information and examples on cash discount clearing in Cash DiscountClearing [Page 52].





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Sometimes an item in an invoice may be excluded from cash discount.

If you post an invoice containing such items as a gross amount, that is, to a separate account, itdoes not matter to which items cash discount applies.

If, however, you post the invoice as a net figure, you must indicate to the system which items areto be excluded from cash discount so that the system can distribute the cash discount amountcorrectly. Therefore, on the individual item screens you should select those items to be excluded.

Starting from the 'RFXPHQW2YHUYLHZ screen, proceed as follows:

1. Position the cursor on the line item for which no cash discount is granted. Select (GLW →6HOHFW . The item screen appears.

2. On the item screen, select the field :LWKRXWFDVKGLVFRXQW

3. Choose *RWR from the menu bar to proceed to the other items or return to thedocument overview.

The items that you have selected in the field :LWKRXWFDVKGLVFRXQW will not be included when thecash discount amount is distributed among the items.




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As a rule, incoming invoices include sales tax. This is specified either as a percentage rate or asa set amount. This must be entered together with the general invoice data. The relevant postingsare made automatically by the system.

You enter the tax information contained in the invoice in the following fields:

• 7D[DPRXQW

In this field you enter the amount of the tax contained in the invoice.

• 7D[FRGH

The tax code is a key that specifies the tax type and the tax percentage. The systemallows only the tax codes defined by your system administrator.

• &DOFXODWHWD[

If the tax amount is not specified explicitly in the invoice, the system can calculate thetax amount itself.

Your system administrator can determine how many tax amounts and codes can be entered inthe vendor screen by making the appropriate settings in the Customizing system of InvoiceVerification.

The tax code entered for an item can be changed on the item screen (unless the tax code iscontained in the G/L account).

The system uses the tax code and the amounts on the individual items to determine the tax basefor each tax code. When you choose 6LPXODWH or 3RVWthe system checks whether the tax

amounts are correct and asks you to make any necessary corrections.




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1. On the vendor screen fill out the fields 7D[DPRXQW and 7D[FRGH. You can overwriteany tax codes proposed by the system, if required.

If the tax amounts are not specified in the invoice, leave the field 7D[DPRXQW blankand select the field &DOFXODWHWD[.

If the invoice contains more tax rates than you can enter on the vendor screen, enterthe amounts and tax codes for which there is space and leave the others until later.

If the vendor screen contains tax rates that do not appear on the invoice, delete thetax codes that are not relevant.

2. When an invoice refers to a purchase order, select the relevant items from theselection screen. The system automatically retrieves the tax code valid for each itemfrom the purchase order. If no tax code has been entered in the purchase order, the

system retrieves the last one used or - if none is available - the first tax code enteredas a default in the Customizing system

When an invoice does not refer to a purchase order, enter further items manually. Thetax code is contained on the individual screens (material screen, G/L account screenor fixed-asset screen). If a tax code is contained in a particular G/L account, thesystem displays this and you cannot overwrite it. Otherwise the system proposes thelast tax code used or - if none is available- the first tax code entered as a default inthe Customizing system, which you can then overwrite.

3. From the document overview screen, choose ([WUDV→7D[HV.

The screen containing tax data appears, including

a) all the tax codes contained in the session, both from the vendor screen and theindividual items.

b) all tax amounts you entered on the vendor screen

c) the tax base for each tax code

You can correct the tax amounts. If you did not enter all the tax amounts and taxcodes on the vendor screen, the missing tax codes (but not the amounts) contained inthe items are displayed. You have to enter the relevant amounts. The system doesnot perform any checks here. Only when you 6LPXODWH or 3RVW does the system checkthe consistency of the tax amount, tax code and base amount.

You cannot change the tax base directly. If this is wrong, then the amount or the taxcode has probably been entered wrongly in the item. To make a correction, you must

branch from the document overview screen to the item concerned.Choose &RQWLQXHto return to the document overview screen.

4. When you choose 6LPXODWH or 3RVW the system checks whether the correct taxamount has been entered for every tax code. If an entry is wrong, the system displaysthe tax data screen and issues a message indicating what the correct amount shouldbe.

You can acknowledge this amount by pressing Enter. If you chose 6LPXODWH you goto the document verification screen: if you chose 3RVW the document is posted andyou return to the initial screen.




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If you wish to change the tax data, first choose &DQFHO . The document overviewscreen appears. You can call up the tax data again by choosing ([WUDV→7D[HV

You can now make any changes required in the 7D[DPRXQW column.




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Which taxes are to be paid and how they are to be posted in the system depends on the taxregulations defined by law in the country of the company concerned. The postings made arecontrolled by the tax code. A distinction is made between the following:

• Deductible taxes

• Non-deductible taxes

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Input tax is paid to the vendor, who passes this on to the tax authorities. The offsetting entry forthe tax payment is posted to a separate input tax account. On the basis of this account and thesales tax account, Financial Accounting can calculate the difference between the tax receivedand tax paid and pay the amount to the appropriate tax authority.

The system creates a line for every tax code you enter. If various line items have the same taxcode, the tax postings are summed up.

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There are three different ways of processing non-deductible taxes:

• Distribution among invoice items

With this processing method, you post the invoice and tax amounts to the vendoraccount. The taxes are distributed among the G/L account line items and totaled ineach case as a net value.

Example: Distribution among Invoice Items [Page 46]

• Separate posting lines

With this processing method, you post the invoice amount and the tax amount to thevendor account. The offsetting entry is split: the offsetting entry for the invoice amountis posted to the stock account, and the offsetting entry for the tax amount is posted toseparate tax accounts.

Example: Separate Posting Lines [Page 47]

• Sales tax not charged

In this case, the invoice does not contain any taxes. The tax is determined by the taxcode entered. You do not enter a tax amount. The tax expense is either distributed

among the invoice items or posted separately. The offsetting entry is posted toseparate tax accounts.

Example: Sales Tax Not Charged [Page 48]

In all three cases, the tax can be defined on multiple levels. The postings to the individual levelscan be distributed to different accounts.

The procedure, tax records, and the accounts to be posted are controlled via the tax code; youcan maintain the settings in the Customizing system of Financial Accounting.




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Consider an invoice for a purchase order where the goods have already been received (the sametax code applies to both items):

Material A 1000

Material B 3000

Total 4000

5 % tax 1 200

2 % tax 2 80

1 % tax 3 40

Total 4320

In the vendor screen, enter 4320 in the field $PRXQW , 320 in the field 7D[, and the tax code in thefield 7D[FRGH. On the document verification screen the system displays how the taxes areposted:

Postings:

Vendor account 4320

GR/IR clearing account 1000

Stock account A 80


Stock account B 240




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Consider an invoice for a purchase order where the goods have already been received (the sametax code applies to both items):

Material A 1000

Material B 3000

Total 4000

5 % tax 1 200

2 % tax 2 80

1 % tax 3 40

Total 4320

On the vendor screen, enter into the field $PRXQW , 320 into the field 7D[, and the tax codeinto the field 7D[FRGH. On the document check screen, the system displays how the taxes areposted:

Postings:

Vendor account 4320



Tax account 1 200

Tax account 2 80

Tax account 3 40

The postings are similar to those for deductible tax, with the difference that deductible tax doesnot provide for multiple levels.




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Invoice for a purchase order where the goods have already been received:

Material A 1000

Material B 3000

Total 4000

On the vendor screen, enter 4000 into the field $PRXQW . On the individual item screens, enter thetax amount and the tax code, for example, for Item 1 = 3% tax and for Item 2 = 5% tax. On thedocument verification screen, the system shows how the taxes are posted:

Postings:

Vendor account 4000

GR/IR account 1000

Stock account A 30

Tax account 1 30


Stock account B 150

Tax account 2 150





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When you post an invoice, the system selects the accounts to be posted. Account assignment isbased partly on your entries when you create an invoice and partly on information stored in thesystem.

• Your entries provide the following information:

− Is the invoice posted as a net or as a gross amount?

− Which vendor account must be posted?

− Which G/L accounts must be posted?

− Which amounts must be posted?

• The material master record provides the following information:

− Which valuation class does the material belong to?

− What type of price control is the material subject to?

− Which account must be posted for the material?

− Is the stock available smaller than the quantity invoiced?

• Posted documents provide the following information:

− What is the purchase order price?

− Has there been a goods receipt for the purchase order?

To post invoices correctly, your system administrator must define the accounts in the chart ofaccounts and the actions to be taken for the different postings when the SAP system is being

installed in your company.

The SAP accounts are defined in a chart of accounts. The following accounts are particularlyimportant for Invoice Verification:

• The vendor account

For each vendor there is a separate account in the sub-ledger to which all amountsconcerning this vendor are posted. A posting to the vendor account is not the sameas a payment. Payment is only executed when the Financial Accounting departmentposts the vendor’s payment to a bank account, for example.

• The stock account

In the SAP system, there is no separate account for each material. Instead, differentmaterials with similar features are grouped together in a common account (forexample, raw materials, acids). The account relevant for a material is defined in thesystem when the material master record is created.

• The GR/IR clearing account

The GR/IR clearing account is an intermediate account between the warehouse stocksheet account and the vendor account. At goods receipt, the net invoice amountexpected is posted from the stock account to the GR/IR clearing account. This postingis then cleared by an offsetting entry on the vendor account at invoice receipt.




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The following example shows a simple type of invoice posting.

Balance sheet acct.

GR / IR account

Vendor

100 +

100 -

Invoice

100 -

100 +

Goodsreceipt

Purchase order : 50 pcs a $ 2.00 / pcGoods receipt for this purchase order: 50 pcsInvoice : 50 pcs a $ 2.00 / pc = $ 100.00

When you post the goods receipt, the system executes the following accountpostings: The value of the delivery (net order price x quantity of goods received)is credited to the warehouse stock account. The GR/IR clearing account isdebited with this amount. When the invoice is posted, the GR/IR clearing accountis cleared and the vendor account is credited.





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As a rule, the cash discount agreements are already defined in the purchase order. When youenter an invoice, these agreements are displayed as default values on the vendor screen in thesection 3D\PHQWFRQWURO . However, they can be overwritten.

6HHDOVR Entering Cash Discount Data [Page 38].

The cash discount amount can be posted in two ways: the amount is either used for the non-operating result or it is credited to the cost object (for example, the warehouse stock account orthe cost center).

How the cash discount amount is posted depends on the document type with which the invoice isposted. In the standard system, there are two document types:

• Document type 5( : Gross posting

The cash discount amount is not included in the invoice posting and is credited to theG/L account "non-operating result" upon payment of the invoice.

• Document type 51: Net posting

The cash discount amount is cleared when the invoice is posted. This procedure isrecommended only if the cash discount amount can be credited to the G/L accountdirectly. In the case of postings to a stock account, the material must be valuatedusing the moving average price, When material has a standard price, variances suchas cash discounts are posted to a separate price difference account. Therefore, as inthe case of gross posting, these differences are included in the non-operating result.

When you enter an invoice you define on the initial screen whether the invoice is to be posted asa gross or net amount.

Posting as a Gross Amount [Page 53]

Posting as a Net Amount [Page 54]




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To post an invoice as a gross amount, a document type that defines posting as a gross amountmust be entered on the initial screen into the field 'RFXPHQWW\SH. In the standard system, this isdocument type 5(.

When you post the invoice, the cash discount amount is first ignored. Only later when thepayment program is run by the Financial Accounting department is the cash discount amountcredited to the account "non-operating result" and debited to the vendor account. The input taxaccount is also adjusted accordingly.

The following example shows how to post an invoice as a gross amount.

Purchase order : 50 pcs a $ 2.00 / pcGoods receipt for this purchase order : 50 pcsInvoice : 50 pcs a $ 2.00 / pc

:

=15 % VAT =

less 5 % cash discount =

$100.00$15.00

$115.00$5.75

$109.25

Balance sheet acct.

GR / IR account

Vendor account

Input VAT

Bank

Non-operating result

Goodsreceipt

100 +

100 -

Invoice

15

115 -

+

100 +

Payment

+

-

-

0.75

109.25

115

-5

If an invoice contains a cash discount and taxes, more tax is posted with the

invoice than should be, as the cash discount is not taken into account. Thishappens regardless of whether the invoice is posted as a gross or as a netamount. Upon payment by Accounting, the tax amount is adjusted automatically,i.e. the tax amount for the cash discount is credited to the input tax account.

In the example above, the input tax account is debited with $15 when the invoiceis posted. However, only $95 (100 - 5%) is to be taxed. Therefore, the tax to bepaid is 15% of $95 = $14.25. The difference of $0.75 is credited to the input taxaccount when the invoice is paid.




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To post an invoice as a net amount, a document type that defines posting as a net amount mustbe entered on the initial screen into the field 'RFXPHQWW\SH. In the standard system, this isdocument type 51.

The cash discount amount expected is already taken into consideration when the invoice isposted. This amount is posted to a cash discount clearing account. The type of price controldefined for the material determines which offsetting account is posted when the stock account isposted.

• Material with a moving average priceThe cash discount amount is credited to the stock account and debited to the cashdiscount clearing account.

•

Material with standard priceThe cash discount amount is credited to the account "Income from price differences"and debited to the cash discount clearing account.

The following example shows a net posting for a material with a moving average price.

Purchase order : 50 pcs a $ 2.00 / pcGoods receipt for this purchase orderInvoice : 50 pcs a $ 2.00 pc

: 50 pcs=

15 % VAT =

less 5 % cash discount =

$100.00$15.00

$115.00$5.75

$109.25

Balance sheet acct.

GR / IR account

Vendor account

Input VAT

Bank

Cash discount

Goodsreceipt

100 +

100 -

Invoice

15

115 -

+

100 +

Payment

clearing account

5 -

5 +

+

-

-

-

0.75

109.25

115

5

If an invoice contains a cash discount and taxes, more tax is posted with the invoice than shouldbe, as the cash discount is not taken into account. This happens regardless of whether theinvoice is posted as a gross or as a net amount. Upon payment by Accounting, the tax amount isadjusted automatically, i.e. the tax amount for the cash discount is credited to the input taxaccount.




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In our example, the input tax account is debited with $15 when the invoice is posted. However,only $95 (100 - 5%) is to be taxed. Therefore, the tax to be paid is 15% of $95 = $14.25 The

difference, $0.75, is credited to the input tax account when the invoice is paid.

It is also possible to post the goods receipt as a net value. In this case when aninvoice is entered, the GR/IR clearing account is cleared and the vendor accountcredited.




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An invoice can only be posted if the balance is zero. It is very time-consuming to determine thereasons and change the individual items if the balance is not zero. So if there is only a slightdifference between the debit and credit amounts, you can enter a new item to clear thedifference.

This can occur automatically for small differences. In the Customizing system of InvoiceVerification you can maintain a tolerance limit for small differences; if the difference is within thetolerance limits, the system automatically generates a posting line that posts the difference to anon-operating expense or income account.

You order 1 kilogram of a material costing $10.87. The invoice you receive

contains a typing error:1 KG Material SE-1000 = 10.78

When entering the invoice, you enter the amount 10.78 on the vendor screen.You could change the proposed amount from 10.87 to 10.78 on the selectionscreen for order items (see also Price Variance [Page 68]). This would, however,have an effect on the price update. If you do not want this, you must settle thedifference of 0.09 in the document overview screen. The system automaticallycreates a posting line in the document check that clears the difference.

The line created automatically by the system posts the difference on the expense account forsmall differences. The balance is therefore zero and the document can be posted.

If you select the field &DOFXODWHWD[ when entering the tax information, it is notpossible to automatically clear small differences. When a small balance occurs,the system does not automatically create a posting line but issues an errormessage about the balance.




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Some countries require companies to manage purchase accounts to document the value atwhich externally procured materials are posted.

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In Customizing for Invoice Verification you can activate purchase account management on acompany code basis. If you activate it for a company code, you must create the requiredaccounts.

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Purchase accounts can be updated in two ways:

• at the receipt value

In this case the exact amount posted at goods receipt or at invoice receipt is postedto the purchase account.

In Invoice Verification the system only posts to the stock account - and therefore tothe purchase account and to the purchase offsetting account - if the invoice itemmeets the following conditions (compare Price Variance [Page 68] :

− A price variance has occurred

− A material is subject to moving average price control and

− Stock exists for the material

− at the delivered (cost) value

In this case the exact amount posted at goods receipt to the GR/IR clearing accountis posted to the purchase account.

In Invoice Verification the system only posts to the purchase account if a pricedifference has occurred. The difference is posted to the stock account or to a pricedifference account. The sum of these two postings is posted to the purchase account.

Similar to the purchase account, a freight account exists for documenting delivery costs that havebeen posted for externally procured materials.

In Customizing for Valuation, your system administrator defines on a company codebasis whether purchase account management is active. If purchase account

management is active, the additional postings are carried out automatically by thesystem.

Material With Moving Average Price [Page 58]

Material With Standard Price [Page 59]




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Material A is subject to moving average price control

Purchase order: 100 pieces material A at $10.00 /pieceplanned freight costs $200

Goods receipt: 100 pieces

Invoice: 100 pieces material A at $ 11 /pieceplus freight costs

$ 1100$ 250$ 1350

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Stock account 1200 + 150 +

GR/IR clearing account 1000 - 1000 +

Freight clearing 200 - 200 +

Vendor account 1350 -

Purchase account 1000 + 100 +

Freight account (purchasing) 200 + 50 +

Purchase offsetting account 1200 - 150 -




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Material A is subject to standard price control: $ 9. 00 /piece

Purchase order: 100 pieces material A at $ 10.00 /pieceplanned freight costs $ 200


Invoice: 100 pieces material A at $11 /pieceplus freight costs

$ 1100$ 250$ 1350


Stock account 900 +


Freight clearing 200 - 200 +

Expense from price difference 100 + 100 +


Purchase account 900 +

Freight account (purchasing) 200 + 50 +

Purchase offsetting account 900 -

In the above example, the posting to the purchase account is made based on the receipt value.

Based on the delivered value, 100 would have been posted to the purchase account at goodsreceipt and 100 at invoice receipt.





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Four different types of variances are possible:

• Quantity variance

The quantity specified in the invoice is different from the quantity delivered and thequantity invoiced so far.

([DPSOH 100 pieces ordered at $10 per piece

50 pieces delivered

0 pieces already invoiced

Invoice arrives for $800 for 80 pieces

•

Price varianceThe price specified in the invoice is different from the price specified in the purchaseorder.

([DPSOH100 pieces ordered at $1.30 per piece

100 pieces delivered



• Quantity and price variance

Here we have a variance in both quantity and price.

([DPSOH 100 pieces ordered at $10 per piece

60 pieces delivered



• Variance in order price quantity

If the unit in which a material is priced is different from the unit in which a material isordered, the quantity of a material ordered is referred to as the order price quantity(for example, the purchase order is issued for pieces, but the price is in $ per kg). Ifyou have a purchase order with an order price quantity, there must be a conversionfactor between the price unit and the quantity unit. If the conversion factor in theinvoice is different from the conversion factor at goods receipt, there is a variance inorder price quantity. If the invoice is received before the goods, the conversion factorin the invoice is compared with that of the purchase order.

([DPSOH 100 pieces (= 250 kg) ordered at $20 per kg

100 pieces delivered (= 240 kg)


Invoice arrives for $5200 for 100 pieces (= 260 kg)

Thus, the conversion factor of the order price quantity and the order quantity is




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in the purchase order: 2.5 kg per piece

at goods receipt: 2.4 kg per piecein the invoice: 2.6 kg per piece




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Variances are allowed within certain tolerance limits. These are set by your system administrator.Each time a variance occurs, the system checks whether it is within the defined tolerance limit.

If the variance is outside the tolerance limit, the system displays this in a warning message. If youdo not adjust your entries, you can still post the invoice. If, however, the upper tolerance limit isexceeded, the system automatically blocks the invoice for payment. The invoice can then only bepaid by Financial Accounting after the invoice has been released in a separate step.

If the variance is within the tolerance limit, the system accepts the entry. In this case, there is noneed for a warning message or a payment block.





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Invoices with variances are checked in the same way as invoices without variances. Proceed asfollows:

1. Choose 'RFXPHQWHQWU\ →Enter invoice.

2. Fill out the initial screen.

3. To proceed to the vendor screen, press ENTER. Make the necessary entries.

4. To proceed to the selection screen, press ENTER. Here, the system selects all itemsfor which an invoice is outstanding and proposes an amount and a quantity for eachof these items. If the invoice differs, you can overwrite the proposed values.

If no invoice is outstanding for an item, the system will not propose the amount or thequantity. However, you can still enter values in these fields, but you must select the

item if you want it to be included in the document.

5. After you have chosen*RWR→'RFXPHQWRYHUYLHZ , the system can now check

whether your entries have resulted in variances in the selected items. There are twopossibilities:

a) if the variance for an item is within the tolerance limits, the system accepts yourchange and processes the item as if there were no variance

b) if the variance is outside the tolerance limits, the order item screen for this itemappears and a message is displayed. You can now change the 4XDQWLW\ and $PRXQW fields again.

If there are variances for several items and these variances are outside the tolerancelimits, the system displays the item screen of the first line item. Each time you pressENTER, you proceed to the next item screen.

6. When you are on the last item screen, press ENTER to proceed to the documentoverview screen.

7. To post the document, choose'RFXPHQW→3RVW . The system nows returns to the

initial screen.

If the variance is outside the tolerance limits, you receive a message stating that thedocument was posted but is blocked for payment.




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The difference between the quantity delivered and the quantity invoiced for goods received on apurchase order is the open quantity. A quantity variance exists if the quantity you are enteringfrom the invoice does not match this open quantity.

The SAP system allows the following quantity variances:

• In purchase-order-based Invoice Verification:

The quantity listed in the invoice can be larger or smaller than the quantity still to beinvoiced. If it is smaller, a further invoice for the remaining quantity is expected. If it islarger, a further goods receipt will be expected for the extra quantity charged.

• In goods-receipt-based Invoice Verification:

When goods-receipt-based Invoice Verification is active, an invoice can only beposted when at least one goods receipt hsa been posted for the order item. In thestandard system, the quantity invoiced cannot be larger than the quantity expected bythe system for invoicing, since further invoices can be received for a goods receipt,but not further goods receipts. You can, however, configure the message as awarning, thus allowing you to post the invoice.

Quantity Variance: Checking an Invoice [Page 66]

Quantity Variance: Account Movements [Page 67]




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An invoice of $800 for 80 pieces is entered for a purchase order.

In the selection screen, the system indicates that only 50 pieces are to be invoiced in the amountof $500 for this purchase order. These values need to be changed.

1. In the selection screen, overwrite the specified values in the $PRXQW and4XDQWLW\ fields.

2. To proceed to the item screen, choose *RWR→'RFXPHQWRYHUYLHZ . The system

displays a message indicating that the quantity invoiced is larger than the quantity ofgoods received.

3. If you want to post the document despite the variance, you acknowledge the warningmessage by pressing ENTER. The document overview screen appears.

4. To post the invoice, choose'RFXPHQW→3RVW . You return to the initial screen andreceive one of the following messages:

a) If the quantity variance does not exceed the upper tolerance limit:

Document no. ...... created

b) If the quantity variance exceeds the upper tolerance limit:

Document no. ...... created; blocked for payment




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As in the case of invoices without variances, the invoice amount is posted from the GR/IRaccount to the vendor account. The following is taken into account:

• If the quantity invoiced is larger than the quantity received, you expect that the extraquantity invoiced will still be delivered.

• If the quantity received is larger than the quantity invoiced, you expect a further invoiceto arrive.

When the goods or invoice are received, a balance is cleared on the GR/IR account.

The following graphic shows the account postings for a quantity variance where the quantityinvoiced is larger than the quantity of goods received.

800 +

800 -

500 +

500 -

Balance sheet

GR/IR account

Vendor acct.

Invoice

300 +

300 -

Goodsreceipt at

later timeGoods receipt

Goods receipt

50 pcs

Invoice

80 pcsa $10.00= $800.00

Purchase

100 pcsa $10.00

Goods receipt

account

order

If there is no further invoice or goods receipt, the GR/IR account balance will not be clearedautomatically. In order to do this manually, the GR/IR account must be maintained at regularintervals (see also Account Maintenance with Quantity Variances [Page 80]).




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A price variance occurs if a different price per unit of measure results from the quantity invoicedand the amount invoiced.

Price Variance: Checking an Invoice [Page 69]

Price Variance: Account Movements [Page 70]




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An invoice is entered for a purchase order. The invoice contains the following item:

100 pieces SE-5000 at $1.24 per piece = $124

The selection screen indicates that an invoice is due for this purchase order for 100 pieces at$130 per piece. The purchase order price proposed by the system is $1.30 per piece. So youneed to change the amount.

To enter the invoice, proceed as follows:

1. In the selection screen, overwrite the value specified in the $PRXQW field.

2. To proceed to the order item screen, choose *RWR→'RFXPHQWRYHUYLHZ . The

system displays the following message:

Price too low: Tolerance limit exceeded by ....

3. If you want to post the document despite the variance, acknowledge the warningmessage by pressing ENTER. The document overview screen appears..

4. To post the invoice, choose 'RFXPHQW→3RVW . You return to the initial screen and

receive one of the following messages:

a) If the price variance does not exceed the upper tolerance limit:


b) If the price variance exceeds the tolerance limit:

Document no. ...... created; blocked for payment




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When price variances occur, the type of price control defined in the material master determineshow the difference is posted. (See also 0DWHULDO9DOXDWLRQ in Materials Management).

There are two types of price control in the SAP system:

• 6WDQGDUGSULFH

If a material is invoiced on the basis of a standard price, the value of the material isalways calculated using a fixed price stored in the material master record. Whenmaterial is received, the value of the receipt is calculated from the price in the materialmaster. Variances are posted to a SULFHGLIIHUHQFHDFFRXQW at the time of goods orinvoice receipt.

Example: Material with a Standard Price [Page 71]

• 0RYLQJ$YHUDJH3ULFH

The price of a material changes with moving average price control. It is calculated bydividing the current total value by the current total quantity of the material. It changesif the material price differs from the delivered price at goods or invoice receipt.Variances are posted to theVWRFNDFFRXQW with one exception: if the stock ofmaterial is less than the amount stated in the invoice because of a withdrawal thattook place between goods receipt and invoice receipt, then the price variance for themissing quantity is posted to a price difference account.

Example: Material with Moving Average Price with Sufficient Stock Coverage [Page72]

Example: Material with Moving Average Price with Insufficient Stock Coverage [Page

73]




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Purchase order :Goods receipt for this purchase order :Invoice

:

100 pcs a $ 1.24 / pc100 pcs

: = $ 124.00

100 pcs a $ 1.30 / pc

Stock : 100 pcsMaterial with standard price $ 1.20 / pc

Stock Value Standard

price

100200200

120240240

1,201,201,20

Goodsreceipt

Invoice

120 +130 -

10 +

130 +

6 -

124 -

Material master recordBalance sheet acct.

Expenses from price diff.

GR / IR accountVendor account

Income from price diff.

The GR/IR account is cleared at the time of invoice receipt. The variance between the purchaseorder and invoice is posted as follows:

• If the invoice value is greater than the value of goods ordered, the variance is postedto an expense account.

• If the invoice value is less than the value of goods ordered, the variance is posted toan income account.

Thus, the value of the material and the price do not change when an invoice is received.




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6XIILFLHQW6WRFN&RYHUDJH

Purchase order : 100 pcs a $ 1.30 / pc

Goods receipt for this purchase order :Invoice 100 pcs a $1.24 / pc

100 pcs: = $124.00

Stock : 100 pcsMaterial with MAP of $ 1.20 / pc

Material master record

Balance sheet acct.GR / IR accountVendor account

130 -130 + 6 -

124 -130 +

Goodsreceipt

Invoice

Stock Value MAP

100200200

120250244

1,201,251,22

The GR/IR account is cleared at invoice receipt. Variances between the purchase order and theinvoice are posted to the stock account. As a result, the value of the material and, therefore, themoving average price change automatically.

If the stock of a material is less than the quantity specified in the invoice because of a withdrawalthat took place between goods receipt and invoice receipt, the stock account is only debited or

credited for the actual stock. The remaining amount is posted to a price difference account.




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,QVXIILFLHQW6WRFN&RYHUDJH

Purchase order : 100 pcs a $ 1.30 / pcStock : 100 pcsMaterial with MAP of $ 1.20 / pc

Invoice 100 pcs a $ 1.40 / pc: = $140.00Goods withdrawal: 120 pcsGoods receipt for this purchase order : 100 pcs

Stock Value MAP

Material master record

100200

8080

120250100108

1,201,251,251,35

Goodsreceipt

Invoice

Balance sheet acct.Cost center

Goodswithdrawal

+100 pcs with value of

-120 pcs with value of

150150 -

+

130130 +

-8 +

130 +

140 -2 +

$130.00

$150.00

Balance sheet acct.

Vendor accountGR/IR account

Income from price diff.Expenses from price diff.

Since only 80 pieces of the material are in stock at the time of invoice receipt, the price differenceis debited to the material for 80 pieces only. This means

80 pieces * $0.10 per piece (price difference) = $ 8.00.

The remaining variance (20 pieces * $0.10 per piece = $2) is posted to the account "Expensesfrom Price Differences".




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Quantity and price variances occur when an invoice not only contains a different quantity fromthe one still to be invoiced, but also a different price basis from that specified in the purchaseorder.

Quantity and Price Variance: Checking an Invoice [Page 75]

Quantity and Price Variance: Account Movements [Page 76]




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An invoice is entered for a purchase order:

100 pieces SE-2000 at $11 per piece = $1100

The selection screen indicates that an invoice is due for only 60 pieces with a value of $600. Thepurchase order price is only $10 per piece. Therefore, you need to change the amount and thequantity.

1. In the selection screen, you overwrite the values specified in the $PRXQW and4XDQWLW\ fields.

To proceed to the order item screen, choose*RWR→'RFXPHQWRYHUYLHZ . The

system displays a message indicating that the quantity invoiced is larger than thequantity received.

If you want to post the document despite the variance, you acknowledge the warningmessage by pressing ENTER. The following message is displayed in the order itemscreen:

Price too high: Tolerance limit exceeded by ...

4. You can also acknowledge the message by pressing ENTER. If you do so, the systemgoes to the document overview screen.

5. To post the invoice, choose'RFXPHQW→3RVW . You proceed to the initial screen and


a) If the quantity and price variances do not exceed the upper tolerance limit:


b) If the quantity and price variances exceed the upper tolerance limit:

'RFXPHQWQRFUHDWHGEORFNHGIRUSD\PHQW




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The account movements made when quantity and price variances occur depend on the pricecontrol type defined in the material master record, as is the case for regular price variances.

The following example is based on a material with a moving average price:

Purchase order : 100 pcs a $ 10.00 / pcGoods receipt for this purchase order : 60 pcsInvoice : 100 pcs a $ 11.00 / pc = $1,100.00

Goodsreceipt Invoice


600 +600 -

1100 -

(*) 60 +1040 + -

440 +440

Goods receiptat later time

Since the material was debited at goods receipt using the purchase order price (that is, $600instead of $660), it must be debited with an additional $60 in Invoice Verification. The GR/IRaccount will be cleared later when the expected goods receipt of 40 pieces at $440 arrives. Theoffsetting entry is then posted to the stock account.

For the posting selected with an asterisk (*), the following must be considered:

•

In the case of a material with a moving average price, the stock account can only bedebited or credited in accordance with the actual stock balance. If the material stockavailable is less than the quantity invoiced, the stock account is only debited orcredited with the invoice difference for the actual stock balance (stock balance * pricedifference). The remaining amount is posted to a price difference account (PriceVariance).

• For a material with a standard price, this posting would be made to the account"Expenses from Price Differences".




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The unit in which a material is priced in a purchase order is called the order price unit.

100 pieces of a material are ordered, each at $20 a kg. In this case, "pc" (piece)is the order unit, and "kg" (kilogram) is the order price unit (OPUn). With this typeof purchase order, the conversion factor for piece and kilogram must also bespecified so that the system can convert quantities of one unit of measure into theother. For example:4 pieces equal 10 kg.

A variance in order price quantity applies in the following cases:

•

Invoice receipt after goods receiptThe ratioinvoiced quantity in OPUn : invoiced quantity in order unitsdeviates from the ratioquantity of goods received in OPUn : quantity of goods received in order units.

• Invoice receipt before goods receipt

The ratioinvoiced quantity in OPUn : invoiced quantity in order unitsdeviates from the ratioquantity ordered in OPUn : quantity ordered in order units

Variance in Order Price Quantity: Checking an Invoice [Page 78]

Variance in Order Price Quantity: Account Movements [Page 79]




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An invoice is entered for a purchase order. The invoice specifies $5200 for 100 pieces = 260 kg.

The selection screen indicates that a total of 100 pieces has already been received for thispurchase order. As a result of the information in the purchase order, the system proposes $4800as the amount invoiced. You therefore need to change the amount.

1. You overwrite the value specified in the $PRXQW field on the selection screen.

2. Choose *RWR→'RFXPHQWRYHUYLHZ . The order item screen appears.

The corrected amount is copied into this screen.240 kg are proposed from the purchase order as the order price quantity. Theproposed value in the selection screen was calculated on the basis of this quantityand the net price. Since the price, not the quantity, was changed there, the systemnow issues a message indicating a price variance.

3. Overwrite the value in the 4XDQWLW\238Q field.

4. After you have pressed ENTER, the following message is displayed in the item screen:

Order price quantity exceeded by ....

5. You can acknowledge the message by pressing ENTER. The purchase order displayscreen appears.

6. To post the invoice, choose'RFXPHQW→3RVW . You return to the initial screen and


a) If the variance in order price quantity does not exceed the upper tolerance limit:


b) If the variance in order price quantity exceeds the upper tolerance limit:

'RFXPHQWQRFUHDWHGEORFNHGIRUSD\PHQW




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The account movements for variances in order price quantity are the same as for regular pricevariances. The variances are posted either to the stock account, or to one of the accounts"Income from Price Differences" / "Expenses from Price Differences", depending on the pricecontrol type defined in the material master record.

The following example is based on a material with a moving average price:

Goodsreceipt

Invoice


4800 +4800 -

40048005200

++-

Purchase orderGoods receiptInvoice

: 100 pcs a $ 20.00 / kg

260 kg a $ 20.00 / kg: = $5,200.00: 100 pcs with weight of 240 kg





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Quantity differences between goods receipt and invoice receipt for a purchase order result in abalance in the GR/IR clearing account.

• If the quantity invoiced is larger than the quantity received, then further goods receiptsthat will clear the balance are expected for this purchase order.

• If the quantity of goods received is larger than the quantity invoiced, then furtherinvoices that will clear this balance are expected for this purchase order.

If no more goods are to be received or invoiced, the balance must be cleared by the user.

This can be done in different ways:

• You can return the extra goods to the vendor

• You can cancel the invoice (see also Credit Memos and Canceling Invoice Documents[Page 109]).

• You can clear the GR/IR clearing account directly.

Clearing the GR/IR Clearing Account [Page 81]

Account Maintenance with Quantity Variances: Account Movements [Page 82]




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As a rule, the GR/IR account is cleared either periodically or at the end of the fiscal year.

In order to clear the GR/IR account, proceed as follows:

1. From the Invoice Verification screen, choose )XUWKHUSURFHVVLQJ→0DLQWDLQ*5,5

DFFRXQW . The initial screen of Account Maintenance appears.

2. Enter the document header data of the clearing document on the initial screen.

Then decide how you want to select the transactions for which you want to postdifferences.

3. Choose ([HFXWH.

a) If you choose to clear the balance automatically, the system executes the clearingentry when you press ENTER and returns to the initial screen with the followingmessage:

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b) If you selected 3UHSDUHOLVW the selection screen appears.

If you do not want to have the clearing entry executed automatically, proceed asfollows:

4. On the selection screen, the individual purchase orders that have quantity variancesare now listed as per your selection.

Select the order items which you want to clear.

5. Clear the GR/IR clearing account for the selected purchase orders by choosing (GLW

→&OHDU . The system returns to the initial screen and displays a message indicatingthat a document was created.




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0RYHPHQWVThe offsetting entry to clear the GR/IR account is the same as the posting made when you enteran invoice for a purchase order.

• Material with moving average price

The GR/IR account is cleared against the stock account if no stock coverage exists. Ifthe material stock is smaller than the quantity to be cleared, the actual existing stockis debited/credited proportionally. The rest is posted to an expense or incomeaccount.

• Material with standard price

The offsetting entry is made to an expense or income account.

• Purchase orders assigned to an account

The offsetting entry is made to the cost or fixed asset account to which the invoicewas posted.





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When an invoice is blocked, Financial Accounting cannot pay the invoice. The invoice must firstbe released in a separate step before it can be processed.

An invoice can be blocked for payment due to one of the following reasons:

• Variances in an Invoice Item [Page 85]

• Amount of an Invoice Item [Page 87]

• Stochastic Block [Page 88]

• Manual Block [Page 89]

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When an invoice is blocked, the period in which the vendor grants a cash discount may endbefore the invoice is released. In this case, blocking the invoice would be a disadvantage, sincethe payment program cannot deduct the cash discount. To avoid this, you can update thebaseline date for payment when you release the invoice, so that the cash discount periods canbe shifted forwards.




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When you enter an invoice, the system proposes certain values from the purchase order orgoods receipt. If the invoice item differs from the default values, you must determine the reasonfor the variance by contacting the purchasing or goods receipt department or the vendor.

It is too time-consuming to investigate very small variances. So tolerance limits can be defined inthe system. If variances in an invoice item are within these limits, they are accepted by thesystem.

If a tolerance limit is exceeded, you receive a system message. You can still post the invoice butit will be DXWRPDWLFDOO\ blocked for payment if it exceeds the upper tolerance limit (see alsoTolerances [Page 90]).

If the invoice is blocked, all the items are blocked. Even if the invoice only displays variances inone item, the whole invoice is blocked for payment.

If you post an invoice with a blocking reason, the system carries out two steps:

• The account postings resulting from the invoice are made.

• In the vendor item, the system enters an 5 in the field 3D\PHQWEORFN so that FinancialAccounting cannot make payment for the invoice.

The following blocking reasons exist for variances in invoice items (the relevant blocking indicatoris specified in parentheses):

• 4XDQWLW\YDULDQFH 0

A quantity variance exists if the invoiced quantity is larger than the difference betweenthe quantities delivered and those already invoiced. In the SAP System, a quantity

variance is treated differently depending on the amount of the variance. The productof the order price and the variance quantity is used as the basis for determiningwhether the invoice is to be blocked. Lower priced items are permitted relatively largequantity differences, whereas more expensive items are allowed only very smalldifferences.

• 3ULFHYDULDQFH3

A price variance exists if the invoiced price (invoiced amount divided by the invoicedquantity) is not the same as the net order price.

• 9DULDQFHLQRUGHUSULFHTXDQWLW\*

A variance in order price quantity exists if the ratio between the order price quantity

and the order quantity in the invoice differs from the ratio specified at goods receipt(or if it differs from the ratio in the purchase order, if no goods receipt has takenplace).

• 6FKHGXOHYDULDQFH7

A schedule variance exists if the date of invoice entry is before the delivery datespecified in the purchase order. In the SAP system, schedule variances are treateddifferently depending on the value of the invoice items. The product of the invoiceitem value and the number of days variance is used as a basis for determiningwhether the invoice is to be blocked. In this way, relatively large schedule variancesare allowed for lower value items, whereas only very small schedule variances are





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permitted for high value invoice items (When an invoice refers to a schedulingagreement, the system does not check for a schedule variance, since there is no

clearly fixed delivery date in a scheduling agreement.).

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If a material is defined as being relevant for quality management, goods receipts forthis material are posted to stock in quality inspection. Invoices for the material areblocked until the inspection has been successfully completed.

If more than one goods receipts is posted for an order item, an inspection is carriedout for every goods receipt. A distinction is made between two different scenarios inInvoice Verification:

• Goods-receipt-based Invoice Verification has been defined in the purchase order:

The invoice is blocked if the inspection has not been completed for the goods

receipt.• No goods-receipt-based Invoice Verification has been defined in the purchase order:

The invoice is blocked if any goods receipts are still in quality inspection. If aninvoice is posted before the goods are received, it cannot be blocked for qualityinspection.

When Quality Management is active, we recommend you work with goods-receipt-based Invoice Verification. In addition to the fact that invoices are only blocked thatpertain to the exact goods receipt, this also ensures that an invoice cannot be postedbefore the goods receipt and subsequently before the quality inspection has takenplace.

An invoice containing a blocking indicator is blocked for payment until you release it. (See also

Validity of the Block [Page 91].)




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If an invoice item is entered with a large amount, it is advisable to initially block this invoice tocheck the amount, especially in the case of invoices that do not refer to a purchase order.

Items that are blocked due to the amount have the blocking reason 2WKHUYDULDQFHV6.

In the Customizing system of Invoice Verification you can maintain the following settings:

• Whether the invoiced amount should be checked

• The purchase orders in which an invoice item should be checked for its amount,depending on item category and goods receipt indicator of the order item.

You can determine the amount above which an item is to be blocked using the tolerance limits.Different tolerance limits can be set depending on whether the invoice items are entered with or

without reference to a purchase order.




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In addition to the automatic blocking of invoices due to variances or the amount, invoices canalso be blocked at random using the stochastic blocking procedure. A stochastic block is used tomake sample checks. If the stochastic block is active and you post an invoice that is not subjectto any other blocking reason, it can be randomly selected for blocking.

In the Customizing system of Invoice Verification you can make the following settings:

• Whether stochastic blocking is active

• The degree of probability of a block. You can set a threshold value and a percentagefor this.

− if the value of the invoice is larger than or the same as the threshold value, thedegree of probability that the invoice will be blocked is the same as the setpercentage.

− if the value of the invoice is smaller than the threshold value, the degree ofprobability that the invoice will be blocked is calculated in proportion to the setpercentage.

If the threshold value is $1000 and the percentage 50%, the degree of probabilitythat an invoice over $1000 will be blocked is 50%, whereas the degree ofprobability for an invoice over $500 is 25%. If you want the degree of probability

to be the same for all the invoices, you must set the threshold value to zero.

Stochastic blocking is not carried out on item level, but for the whole invoice. If a stochastic blockis set when you post the invoice, the system automatically sets an 5 in the field 3D\PHQWEORFN on the vendor item screen; the individual items do not contain a blocking indicator.




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In addition to the automatic blocking of invoices, you can also PDQXDOO\block invoices. You havetwo options when you enter the invoice:

• You can block an invoice by entering an 5 on the field 3D\PHQWEORFN on the vendorscreen.

• You can block invoices that refer to a purchase order by selecting the field0DQEORFNUHDVQ When you post the invoice, an 5 is automatically set by the systemin the field 3D\PHQWEORFN in the vendor item. Manually blocked items are allocatedthe blocking reason 0DQXDOEORFN4.




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If an invoice only displays very small variances, they are accepted by the system. A smallvariance will fall within set tolerance limits. These tolerance limits can be defined by your systemadministrator.

Tolerances are used not only to define limits for variances but also to determine the amountabove which an invoice should be blocked. You can set different limits depending on whether theinvoice item refers to a purchase order.

You can set a maximum of four limits for each tolerance (see the following example).

Tolerance for price variance: estimated price

Lower limitAbsolute Do not check

Check limit X Value $20. 00

Percentage Do not check

Check limit X 25 %

8SSHUOLPLW

Absolute Do not check

Check limit X Value $10.00

Percentage Do not check

Check limit X 10 %

The above table displays the tolerance limits for price variances for an estimated price. If thepurchasing department flags the order price as an estimated price in the purchase order, thetolerance limits are checked at goods receipt. Both a percentage and an absolute variance areset for the upper and lower limits. If one of these limits is exceeded, you receive a warningmessage. If one of the upper limits is exceeded, the invoice is blocked for payment when it isposted.

If you generally do not want to block an invoice item on the basis of a particular variance, youmust set all the tolerance limits to 'RQRWFKHFN

If you want to block an invoice item on the basis of a particular variance in all cases, set the

upper limits to zero.




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In the case of quantity, price, and schedule variances, the invoice may still be blocked althoughthe blocking reason is no longer valid (see the following examples). The system does notautomatically release the invoice. Every blocked invoice remains blocked until you release it in aseparate step.

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For a purchase order for 100 pieces, 80 pieces are delivered and 100 pieces areinvoiced. The invoice is entered and blocked for payment. The next day, theremaining 20 pieces are delivered. The blocking reason is, therefore, no longervalid. However, you must first release the invoice before it can be paid.

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The goods receipt and invoice receipt for a purchase order both take place on thefirst of the month, although the delivery date was planned for the 25th of themonth. The invoice is blocked for payment. On 25th of the month the blockingreason is no longer valid. However, you must first release the invoice before itcan be paid.

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An invoice is blocked due to price variance. After consulting the vendor, the buyerchanges the order price. The blocking reason is no longer valid. However, youmust first release the invoice before it can be paid.

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An invoice is blocked due to quality inspection. If the result of the inspection ispositive, the inspection process is complete. The blocking reason is no longervalid. However, you must first release the invoice before it can be paid.





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Before you can pay a blocked invoice, you must release it in a separate step.

You must cancel the blocking indicator that was set when the invoice was posted. Since thewhole invoiced amount is to be paid and not individual invoice items, the blocking indicator is setin the vendor line. In this way, all the items of a blocked invoice can only be released at the sametime.

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The procedure for releasing invoices for payment can be divided into three steps:

• Selecting Invoices For Processing [Page 93]

• Processing the List of Invoices [Page 97]

• Releasing Invoices [Page 105]




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From the Invoice Verification screen, choose, )XUWKHUSURFHVVLQJ → 5HOHDVHLQYRLFHV. The initialscreen for releasing invoices is displayed. You can enter the following:

• Selection Criteria [Page 94] according to which you wish to process invoices

• How Processing [Page 95] should be carried out

• The Settings [Page 96] according to which the invoices / items should be listed (youcan change these later in processing the list)




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In the top part of the screen, you enter the criteria according to which the blocked invoices are tobe listed. In addition to the &RPSDQ\FRGH and )LVFDO\HDU , the following selection criteria areavailable:

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• If you enter a vendor, the system searches for all the blocked invoices for this vendoronly.

• If you do not specify a vendor, the system searches for all the blocked invoices for allvendors. Please note that this option can be very time-consuming.

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If you enter a purchasing group, the selection of invoices is limited to those which refer to apurchase order for the specified purchasing group. Please note that an invoice can refer toseveral purchase orders. In this case, all the items in the invoice are listed, even if only one of theitems refers to a purchase order issued by the specified purchasing group.

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If this field is selected, the system takes all the existing blocking reasons into account.

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If you select this field, a window appears in which you can select one or more blocking reasons.The system then only searches for invoices which do not contain items with other blockingreasons only.

An invoice is blocked due to the following reasons:

Blocking reason Quantity Price Schedule

Item 1 X X

Item 2 X X

Item 3 X X

If you only select the blocking reason ‘Quantity’, the invoice will not appear in thelist for processing, since items 2 and 3 only display other blocking reasons. If youonly select the blocking reason ‘Price’, the invoice is included in the list for

processing. The invoice is also included in the list if you select both the blockingreason Quantity and the blocking reason Schedule

With this method, the system always displays all the blocked items in an invoice even when youselect individual blocking reasons.

You cannot directly select invoices that have been blocked manually or stochastically on thevendor screen. These invoices are only included in the list if you select $OOEORFNLQJUHDVRQV.




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3URFHVVLQJ

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Invoices with blocking reasons that are no longer valid can be automatically released forpayment. If you select this field, the system searches for all the invoices with blocking reasonsthat are no longer valid and automatically releases them.

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To block an invoice and investigate the blocking reason is time-consuming. The period in whichcash discount is granted could expire before the invoice is released. If the vendor is responsiblefor the block, you can shift the payment period forward. You can change the baseline date forpayment so that the payment program can still deduct the agreed cash discount.

When you release the invoice and this field is selected, a window appears in which you can enterthe new baseline date for payment.




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In the lower part of the initial screen you can select the settings for listing blocked invoices.

In the SAP System certain standard settings have already been made. Your system administratorcan make additional settings. These determine how the list generated by the system isstructured.

You can later change the settings you select on the initial screen when the system displays thelist.

The system displays the current settings on the initial screen. If you want to change them,choose the following from the menu bar:

• 6HWWLQJV → /LQHOD\RXW

This determines how the individual lines should be structured.

A window appears in which the settings for the line layout are displayed. In thestandard system they are:

− Document number - Purchase order

− Vendor - Document number

• 6HWWLQJV → 7RWDOVYDULDQW

You can determine how the invoices are totaled.

A window appears in which the possible totals variants are displayed; in the standardsystem they are:

−

Document number− Vendor

• 6HWWLQJV → /LVWEHJLQVZLWK

You can determine whether you want to display the individual invoice items or thetotals first. A window appears in which you can select between

− Invoice items and

− Totals

If you select a new setting, the system changes the display in the section 6HWWLQJV




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3URFHVVLQJWKH/LVWRI,QYRLFHV

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After you have selected the invoices for processing, press ENTER to display the list of invoiceswhich meet the selection criteria. Please note the following:

• Canceled invoices are not included in the list

• If you selected the invoice items setting, the vendor line and relevant items aredisplayed for each invoice.

• If only the vendor item is displayed for an invoice, this can be either because:

• the invoice has been given a stochastic block

• the invoice was manually blocked on the vendor screen.

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There are many options available for changing the layout of the listed invoices so that the systempresents you with an overview of the information which you consider most important.

The functions for changing the list layout depend on whether you are currently in the item displayor totals display:

• The item display supports:

− Changing Settings [Page 98]

−

Sorting [Page 99]− Searching [Page 100]

− Switching to Item Display [Page 103]

• The totals display supports:

− Displaying Details [Page 102]

− Switching to Item Display [Page 103]

You can cancel individual blocking reasons in the item display.

Canceling Individual Blocking Reasons [Page 104]




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To change the list layout, choose 6HWWLQJV from the menu bar. You can define how the lines arelaid out and also add or remove fields in the list.




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In the item display you can arrange the lines according to different criteria. Note where the cursoris, since the function is dependent on the cursor position:

• 7KHFXUVRULVQRWRQDQLWHPOLQH

If you choose (GLW → 6RUW , a window appears in which you can determine the sort

criteria and their sequence. To determine the sequence, enter , and in the fields.When you press ENTER, the system arranges the list in this sequence.

• 7KHFXUVRULVRQDQLWHPOLQH

If you choose (GLW → 6RUW , the system arranges the invoice items according to the

information in the column on which the cursor is positioned.




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In the item display, you can limit the list to certain characteristics. Note where the cursor is, sincethe function is dependent on the cursor position:


If you choose (GLW → Find, a window appears in which you can select a maximum of

three search fields. When you press ENTER, a window appears in which you enter thesearch criteria for the individual fields. When you press ENTER, the system displays alist of items which meet the search criteria.


When you choose (GLW → )LQG , the system uses the column on which the cursor is

positioned as the search field. A window appears in which you enter the searchcriteria. When you press ENTER, the system displays a list of items which meet thesearch criteria.




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6ZLWFKLQJWR7RWDOV'LVSOD\

If you are in the item display and want to switch to the totals display, choose (GLW → 7RWDO . Notewhere the cursor is, since the function is dependent on the cursor position:


A window appears which contains different totals variants for selection. When youpress ENTER, the system displays the corresponding totals display.


The system totals the invoice items for the column on which the cursor is positioned.

For example:

The cursor is positioned on an invoice item in the column'D\V and you choose (GLW

→ 7RWDO . The system searches for all the documents which have the same number of

days in the blocking reason; at the end of each group is the total value.




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If you want to find out more information about a line in the totals display, position the cursor onthe line and choose (GLW → 'HWDLOV.

• If you totaled according to document numbers, the system displays the section that isrelevant to the invoice from the item display.

• If you totaled according to vendors, the system displays the blocked invoices for thisvendor.




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If you are on the totals display and you want to switch to the item display, choose *RWR →,QYRLFHLWHPV.




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When you process a blocked invoice item, it is possible to cancel individual blocking reasons.This could be useful in the following cases:

• An invoice contains several blocking reasons. The time required to investigate eachreason can differ. If a particular blocking reason is no longer valid, you can cancel it,without this affecting the other blocking reasons.

• In your company, different employees may be responsible for processing individualblocking reasons. Your system administrator can authorize different employees toprocess different blocking reasons. Each employee can, therefore, cancel theblocking reasons for which he or she has authorization.

When you cancel the last blocking reason in an invoice, the system automatically releases theinvoice.

To cancel a blocking reason, proceed as follows:

1. From the Invoice Verification screen, choose )XUWKHUSURFHVVLQJ → 5HOHDVHLQYRLFHV.

The initial screen for releasing invoices is displayed.

2. On the initial screen you must determine:

a) which invoices are to be selected

b) whether the baseline date for payment should be changed

c) the settings for the list. The blocking reason to be canceled must be displayed inthe list.

When you press ENTER, the system displays the list of invoices.

3. Position the cursor on the blocking reason for the relevant invoice item and choose

,QYRLFHLWHP → &DQFHOEORFNLQJUHDVRQ.

The system removes the blocking indicator and checks whether this is the lastblocking reason for the invoice.

If there are other blocking reasons in this or other items in the invoice, you receive amessage indicating that the selected blocking reason has been deleted.

If no other blocking reasons exist in this or other items in the invoice, the systemreleases the invoice. You receive a message indicating that the invoice has beenreleased.




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There are three ways to release invoices:

• Individual Release [Page 106]

• Collective Release [Page 107]

• Automatic Release [Page 108]

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When you release an invoice, the system cancels the blocking indicator in the invoice document.In the vendor line, the 5 in the field 3D\PHQWEORFN is deleted.

After you have successfully released an invoice, you cannot immediately see from the invoice

document that the invoice was once blocked for payment. You can, however, display the blockingreasons for individual items in the document by positioning the cursor on the original document or

on the item screen and selecting ([WUDV → %ORFNLQJUHDVRQV. A window appears with the

blocking reasons for this item. The blocking reasons are not deleted and they can still bedisplayed even when the invoice has been released. If the blocking reasons are still valid, theitem screen will display %ORFNHG; .




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To release individual invoices, proceed as follows:






c) which settings should be selected for the list.

When you press ENTER, the system displays the list of invoices.

3. Process the list.

Since you cannot release an invoice on item level, you must switch to the totals

display. Make sure the cursor is not positioned on an item line and choose (GLW →

7RWDO .

A window appears in which the totals variants are listed. ,WLVRQO\SRVVLEOHWRUHOHDVHDQLQYRLFHIRUWKHWRWDOVYDULDQWVGHILQHGIRUWKHVWDQGDUGV\VWHP'RFXPHQWWRWDOVDQG9HQGRUWRWDOV

4. Select a totals variant ('RFXPHQWWRWDO or 9HQGRUWRWDO ). The system displays thetotaled list.

5. Position the cursor on a line and choose ,QYRLFHLWHP → 6DYHUHOHDVH.

If you specified on the initial screen that you want to change the baseline date for

payment, see step 6, if not continue with step 7.

6. A window appears in which you enter the new baseline date for payment. Today’sdate is proposed by the system. You can change the date if you want and then pressENTER.

7. The system releases the invoice (or invoices in the case of totaling according tovendors) on which the cursor is positioned. You receive a message indicating thenumber of invoices that were released.

The released lines are displayed in a different color. This is useful when you want torelease different invoices one after the other.

8. If you want to release other invoices, repeat step 5.




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To release several invoices together, proceed as follows:






c) the layout of the list

When you press ENTER the system displays the list of invoices.

3. Process the list.

Since you cannot release invoices on item level, you must switch to the totals display.

Make sure that the cursor is not on an item line and choose (GLW → 7RWDO .

A window appears in which the totals variants are listed. ,WLVRQO\SRVVLEOHWRUHOHDVHDQLQYRLFHIRUWKHWRWDOVYDULDQWVGHILQHGIRUWKHVWDQGDUGV\VWHP'RFXPHQWWRWDOVDQG9HQGRUWRWDOV

A window appears in which the totals variants are listed.

4. Select a totals variant ('RFXPHQWWRWDO or 9HQGRUWRWDO ). The system displays thetotaled list.

5. Choose (GLW → &ROOHFWLYHUHOHDVH. The system displays all the listed lines. By

positioning the cursor and selecting (GLW → $FWLYDWHGHDFWLYDWH, you can activate

individual lines or deactivate active lines. You can also activate or deactivate all thelines.

6. After you have activated the lines you want, choose ,QYRLFHLWHP → 6DYHUHOHDVH.

If you specified on the initial screen that you want to change the baseline date forpayment, see step 7, if not continue with step 8.

7. A window appears in which you enter the new baseline date for payment. Today’sdate is proposed by the system. You can change the date if you wish and then pressENTER.

8. The system releases the invoices in the active lines. You receive a messageindicating how many invoices have been released.

The released invoices are not deleted from the list but they are deactivated andcannot be reactivated.




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It is only possible to automatically release invoices blocked due to quantity, price, or schedulevariance if their blocking reasons are no longer valid.

These types of invoice do not usually require further processing and can be releasedautomatically. Proceed as follows:



2. Enter data on the initial screen. Select the field 5HOHDVHDXWRPDWLFDOO\in the section3URFHVVLQJ . The system then ignores your entries in the section %ORFNLQJUHDVRQV.

3. When you press ENTER, the system releases the invoices that meet your selectioncriteria and for which the blocking reason is no longer valid. If you specified on theinitial screen that you want to change the baseline date for payment, a windowappears in which you can enter the new date. When you press ENTER again, theinvoices are released. The system displays a list of the released invoices and issuesa message indicating how many invoices were released.

You can run the release program, 5005 in the background. Let yoursystem administrator know which variants of this program are to be created andwhich jobs have to be defined.





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&UHGLW0HPRV:LWK5HIHUHQFHLQWKH6\VWHP>3DJH@

3RVWLQJ&UHGLW0HPRV:LWK5HIHUHQFHLQWKH6\VWHP>3DJH@

&UHGLW0HPRV$FFRXQW0RYHPHQWV>3DJH@

&UHGLW0HPRV:LWKRXW5HIHUHQFHLQWKH6\VWHP>3DJH@

&DQFHOLQJ,QYRLFH'RFXPHQWV>3DJH@

3RVWLQJD5HYHUVDO'RFXPHQW>3DJH@

&DQFHOLQJ,QYRLFH'RFXPHQWV$FFRXQW0RYHPHQWV>3DJH@




&UHGLW0HPRV

-XQH

&UHGLW0HPRV

The term credit memo always refers to a credit memo IURP the vendor. Therefore, posting acredit memo always leads to a debit posting to the vendor account.

As in the case of invoices, credit memos can refer to purchase orders or goods receipts.

If such a reference exists, the system automatically determines the accounts to which the creditmemo is to be posted.

To enter a credit memo into the system, you process the same screens as for invoice entry. Twotypes of credit memos are possible:

• Credit memos that refer to a purchase order or goods receipt

• Credit memos that do not refer to a transaction.

Credit Memos With Reference in the System [Page 111]

Credit Memos Without Reference in the System [Page 115]





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When a credit memo refers to a goods receipt or a purchase order, the following must beconsidered:

• The credit memo can only be based on a quantity that does not exceed the quantityinvoiced to date. If you enter a larger quantity, the system displays an error messageindicating that the reversal quantity is larger than the quantity invoiced to date.

• If you enter a credit memo for the exact quantity invoiced so far, the system expectsyou to credit the entire invoiced amount as well (otherwise you could have a stockvalue for a material, but no stock). If you do not enter the amount that has beeninvoiced so far, the system automatically replaces your entry and proceeds to theorder item screen. A warning message informs you that your entry has beenchanged.

• If you enter a credit memo for a smaller quantity than that invoiced to date, theamount of the credit memo cannot be larger than the amount invoiced so far. If youenter a larger amount, the system displays an error message.

• The system does not check whether your entries in the columns $PRXQW and 4XDQWLW\ correspond to the purchase order price or invoice price.

• The purchase order history is updated when the credit memo is posted. The quantityinvoiced is reduced by the credit memo quantity. (If the quantity invoiced should notbe reduced, you must post the credit memo as a subsequent credit. See alsoSubsequent Debits/Credits [Page 141].

Posting Credit Memos With Reference in the System [Page 112]

Credit Memos: Account Movements [Page 113]




3RVWLQJ&UHGLW0HPRV:LWK5HIHUHQFHLQWKH6\VWHP

-XQH

3RVWLQJ&UHGLW0HPRV:LWK5HIHUHQFHLQWKH6\VWHP

To post a credit memo that refers to a goods receipt or an invoice receipt in the system, proceedas follows:

1. From the Invoice Verification screen, choose 'RFXPHQWHQWU\ → (QWHUFUHGLWPHPR.

The initial screen is displayed. In the section &RQWURO , the field &UHGLWPHPR isselected.

2. On the initial screen, enter a purchase order or goods receipt in the section 6HOHFW .

3. When you press ENTER, the vendor screen is displayed. Enter the gross amount to becredited into the field $PRXQW .

4. When you press ENTER, the system displays the selection screen for all the purchaseorders or goods receipt documents you specified on the initial screen. In the columns $PRXQW and 4XDQWLW\ , the system proposes the value and quantity invoiced to date. Inthe first column all the items with default values that are not equal to zero areselected. Check the selections and, if necessary, deselect items that are not affectedby the credit memo. Check the default values: If you correct the columns $PRXQW and4XDQWLW\ , you must adhere to the rules listed in Credit Memos With Reference in theSystem [Page 111]. If you do not adhere to the rules, the system displays the itemscreen and you receive a message asking you to correct your entries.

5. When you choose ,QYRLFH → 3RVW , you can post the credit memo provided the

balance is zero.




&UHGLW0HPRV$FFRXQW0RYHPHQWV

-XQH


In the SAP System a credit memo reverses an invoice entry. In the same way as the systemassumes that a corresponding goods receipt took place or is to take place for an invoice, thesystem assumes that a credit memo represents the reversal of a goods receipt. The credit memois settled using the GR/IR clearing account.

The account postings made for a credit memo depend on the goods receipts and invoicesalready posted.

The account postings are made according to the following rules:

• When determining the account postings, the system considers the following:

− the credit memo amount

− the total amount posted to the GR/IR clearing account when the invoices were

entered (FOHDULQJYDOXH)

− the total amount posted to the GR/IR clearing account when the goods receiptswere posted (*5YDOXH)

− the credit memo quantity

− the total quantity invoiced (,5TXDQWLW\)

− the total quantity delivered (*5TXDQWLW\)

• If the IR quantity is larger than the GR quantity, the credit memo quantity is dividedinto the quantity that is covered by the excess invoice quantity and the remainingcredit memo quantity.

In the case of the quantity that is covered by the excess invoice quantity, the followingvalue is calculated:

4XDQWLW\FOHDULQJYDOXH*5YDOXH,5TXDQWLW\*5TXDQWLW\

The following value is calculated for the remaining credit memo quantity:

4XDQWLW\*5YDOXH*5TXDQWLW\

The total of these values is posted to the GR/IR clearing account.

• If the IR quantity does not exceed the GR quantity, the following value is calculatedfor the credit memo quantity:

4XDQWLW\*5YDOXH*5TXDQWLW\

This value is posted to the GR/IR clearing account.

• The credit memo amount is posted to the vendor account.

• If the credit memo amount varies from the GR/IR posting, the difference is posted tothe stock account or a price difference account, depending on the price controldefined for the material.





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The following example shows the account postings made when you post a creditmemo after several goods and invoice receipts for a material with moving

average price control.

Order: 100 pieces at $11Goods receipt: 80 piecesInvoice: 60 pieces at $12/pieceInvoice: 40 pieces at $13.70/pieceGoods receipt: 10 piecesCredit memo $720 for 60 pieces

Vendor accountGR/IR accountStock account

Vendor accountGR/IR account

Stock account

880 -880 +

720 -660 +60 +

720 +702 -

18 -

548 -494 +54 +

137 -137 +

Postings

Posting

Creditmemo

10 *1154 - 1017

100 - 90= 137

*501017

90= 565

702

Goodsreceipt

Invoice Invoice Goodsreceipt

At the first goods receipt, $880 is posted to the GR/IR clearing account. Thecorresponding amount for 60 pieces is cleared with the first invoice. When thesecond invoice is entered, the GR/IR account still contains $220 for 20 pieces.This is cleared and the remaining 20 pieces are posted with the invoice price; 20x 13.70 = $274. The next goods receipt is also valuated with the invoice price of$13.70/piece.

When you post the credit memo, there is still an excess invoice quantity of 10

pieces. This is multiplied by the difference between the clearing value (660 + 494= 1154) and the GR value (880 + 137 = 1017) and then divided by the differencebetween the IR quantity (100) and the GR quantity (90). The remaining creditmemo quantity of 50 pieces is multiplied by the GR value and then divided by theGR quantity. The result is the amount that is posted to the GR/IR clearing accountwhen you post the credit memo.

After you post the credit memo, there is a balance of $565 on the GR/IR clearingaccount. This means that the system still expects an invoice for a goods receipt of50 pieces. When the invoice is posted, the balance is then cleared.





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Credit memos without reference to a purchase order or goods receipt are posted in exactly thesame way as invoices without reference (see also Checking Invoices Without Goods Receipt orPurchase Order Reference [Page 32]):

• First you create the vendor line item.

• Then you create the offsetting entry in

− the G/L account

− the stock account

− the fixed-asset account

3RVWLQJFUHGLWPHPRVZLWKRXWUHIHUHQFHLQWKHV\VWHP

To post a credit memo without reference to a purchase order or goods receipt, proceed asfollows :

1. From the Invoice Verification screen, choose 'RFXPHQWHQWU\→(QWHUFUHGLWPHPR .

You proceed to the initial screen. In the section &RQWURO , the field &UHGLWPHPR isselected.

2. On the initial screen, specify the vendor who sent the credit memo to you in thesection 6HOHFW .

3. After you have pressed ENTER, the system proceeds to the vendor screen where youenter the gross amount to be credited in the field $PRXQW .

4. After you have pressed ENTER, the document overview is displayed. This screen only

lists the vendor line item you created.

5. When you choose (GLW→1HZLWHP→, you can now post the offsetting entry. This

procedure is explained in detail in Checking Invoices Without Goods Receipt orPurchase Order Reference [Page 32].





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Invoice documents, including both invoices and credit memos, can be automatically canceled.Note the following:

• If an invoice is canceled, the system automatically creates a credit memo.

• If a credit memo is canceled, the system automatically creates an invoice.

The system copies the amount and quantity for the credit memo/invoice from the invoice/creditmemo to be canceled. In this way, variances between the invoice and credit memo or creditmemo and invoice are avoided.

Every invoice document can be canceled, unless it has already been canceled or it is itself areversal document. This can be determined in the document header. The field &DQFHOHGZLWKdetermines with which document an invoice/credit memo was canceled or to which document the

reversal document refers.

Posting a Reversal Document [Page 117]

Canceling Invoice Documents: Account Movements [Page 118]





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To cancel an invoice, you must post a reversal document. Proceed as follows:

1. From the Invoice Verification screen, choose )XUWKHUSURFHVVLQJ → &DQFHO . The

initial screen is displayed.

2. Enter data in the fields 'RFXPHQWQXPEHU&RPSDQ\FRGHand )LVFDO\HDU .

3. When you choose 'RFXPHQW → 'LVSOD\ , you can display the items for the document

to be canceled. With F3 = Back you return to the initial screen.

4. When you choose 'RFXPHQW → 3RVWUHYHUVDOGRF, the system automatically posts

the credit memo/invoice. You receive the following message:

Document no. nn created

The system checks an invoice that is created when a credit memo is reversed for possiblevariances. The invoice could be blocked for payment. If this is the case, you will receive amessage.





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When the system cancels an invoice/credit memo, it simply tries to reverse the postings.However, this is not always possible. For example, if an invoice is canceled in which a material isdebited, the postings can only be reversed if there is sufficient stock of the material when youcancel the invoice. If there is not sufficient material stock, the reverse posting is proportionallydistributed; the amount covered by the stock is posted to the stock account, the remainingamount to the price difference account.

When you cancel an invoice/credit memo that refers to a purchase order, it is not possible toexactly reverse the original account postings if another invoice was subsequently posted with adifferent price.




'HOLYHU\&RVWV

-XQH

'HOLYHU\&RVWV

7\SHVRI'HOLYHU\&RVWV>3DJH@

3ODQQHG'HOLYHU\&RVWV>3DJH@

5HIHUHQFLQJ3ODQQHG'HOLYHU\&RVWV>3DJH@

3RVWLQJ3ODQQHG'HOLYHU\&RVWV>3DJH@

8QSODQQHG'HOLYHU\&RVWV>3DJH@

3RVWLQJ8QSODQQHG'HOLYHU\&RVWV:LWK2UGHU5HIHUHQFH>3DJH@

3RVWLQJ8QSODQQHG'HOLYHU\&RVWV:LWKRXW2UGHU5HIHUHQFH>3DJH@

$FFRXQW0RYHPHQWV:KHQ3RVWLQJ'HOLYHU\&RVWV>3DJH@





-XQH


In the SAP System, there are two types of delivery costs:

• 3ODQQHGGHOLYHU\FRVWV are entered in the purchase order. Provisions are set up forthe relevant costs at goods receipt. The delivery costs posted at goods receipt can bereferenced at invoice entry.

• 8QSODQQHGGHOLYHU\FRVWV are only entered when the invoice is entered. No provisionis made at goods receipt.

Planned delivery costs have the advantage that the delivery costs are included in the valuation ofthe material (or, in the case of a purchase order with account assignment, the account object canbe debited) at goods receipt. Subsequent debits when the invoice is entered are then only madeif the delivery costs in the invoice vary from the planned delivery costs.

Planned Delivery Costs [Page 121]

Unplanned Delivery Costs [Page 127]





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Planned delivery costs are delivery costs agreed upon with the vendor, a carrier or a customsoffice before the purchase order is created and are entered when the purchase order is entered.

Planned delivery costs can be divided up according to the following criteria:

• Origin of costs

− freight costs

− customs duty

Your system administrator can define further origin types using the conditionsfunctionality in the Customizing system of Purchasing.

• Calculation of costs

− fixed amount, independent of delivered quantity

− quantity-dependent amount

− percentage value of goods delivered.

Planned delivery costs are automatically posted to a clearing account when you enter the goodsreceipt. Each origin type has its own clearing account. When you post the invoice for thesedelivery costs, the corresponding clearing accounts are settled.

In Invoice Verification, it is possible to list all the planned delivery costs for either a purchaseorder, a vendor, or a bill of lading. You can copy the relevant items from this list into thedocument.

You do not have to specify a certain vendor for planned delivery costs. When you plan the

delivery costs in a purchase order, you can enter a vendor (for example, a freight supplier or acustoms office). In Invoice Verification, however, the delivery costs can be posted to anotherinvoicing party.

Planned delivery costs are entered on the purchase order for each item. At invoice receipt, theyare allocated to the relevant items.

In addition to planned delivery costs, the buyer can set up provisions formiscellaneous delivery costs for an order item. These provisions areautomatically posted at goods receipt in the same way as planned delivery costs.However, unlike planned delivery costs, they cannot be referenced when theinvoice is entered. Invoices for these costs must be posted as unplanned deliverycosts.

Referencing Planned Delivery Costs [Page 122]

Posting Planned Delivery Costs [Page 124]




5HIHUHQFLQJ3ODQQHG'HOLYHU\&RVWV

-XQH

5HIHUHQFLQJ3ODQQHG'HOLYHU\&RVWV

The amount of planned delivery costs is posted to a special clearing account at goods receipt. Sothat this item can be cleared at invoice receipt, it is important to establish the link to the postingwhen an invoice contains planned delivery costs.

6HOHFWLRQRSWLRQV

There are three procedures for referencing planned delivery costs:

• Delivery costs for a purchase order

All planned delivery costs for the specified purchase order are listed.

• Delivery costs for a vendor

All planned delivery costs for the specified vendor are listed. You can limit theselection by entering a date. The list then only contains the delivery costs incurredafter the specified date.

• Delivery costs for a bill of lading

When goods are received, an external bill of lading number can be entered in the %LOO RIODGLQJ field. You can refer to this number when clearing delivery costs. The systemthen lists all the delivery costs for one bill of lading.

'HIDXOWYDOXHV

The default values for delivery costs differ depending on the purchase order history:

•

If no goods receipt took place for the purchase order

A list is displayed of the planned delivery costs without any quantities or values, sincenothing is as yet expected for invoicing.

• If a goods receipt took place for the purchase order

The planned delivery costs are proposed as follows:

The quantity for which delivery costs have not yet been invoiced is proposed as theinvoiced quantity. The resulting value is also proposed.

The proposed values can be overwritten. However, the system then checks whether resultingquantity or price variances are within the set tolerance limits. The system issues warningmessages if the variances are too large. If the upper tolerance limits are exceeded, the invoice is

blocked for payment.Example: Planned Delivery Costs [Page 123]




([DPSOH3ODQQHG'HOLYHU\&RVWV

-XQH

([DPSOH3ODQQHG'HOLYHU\&RVWV

Ordered: 100 KG at $10/KG with following delivery costs:

fixed amount $50

quantity-dependent amount $0.20/KG

percentage value of goods delivered 3%

1 st goods receipt: 30 KG, 2nd goods receipt: 50 KG

If the invoice refers to the delivery costs in the purchase order, the system proposes the followingamounts and quantities:

$PRXQW ,QYRLFHGTXDQWLW\

40 $ 80 KG (40 $ = 50 $ * 80 KG/100 KG)

16 $ 80 KG (16 $ = 0,20 $/KG * 80 KG)

24 $ 80 KG (24 $ = 3% from 800 $)

Since no delivery costs have been posted so far, the system proposes the total quantity of goodsreceived to date.




3RVWLQJ3ODQQHG'HOLYHU\&RVWV

-XQH

3RVWLQJ3ODQQHG'HOLYHU\&RVWV

How to post delivery costs depends on the type of invoice you are processing:

• Goods Invoice With Planned Delivery Costs [Page 125]

• Invoice for Delivery Costs Only [Page 126]




*RRGV,QYRLFH:LWK3ODQQHG'HOLYHU\&RVWV

-XQH

*RRGV,QYRLFH:LWK3ODQQHG'HOLYHU\&RVWV

To post a goods invoice including delivery costs, proceed as follows:

1. From the menu bar, select'RFXPHQWHQWU\→(QWHULQYRLFH. The initial screen is

displayed.


Enter the purchase order or goods receipt/delivery note to which the invoice refers inthe section6HOHFW

Press ENTER to display the vendor screen.

3. Fill out the vendor screen.

Press ENTER to display the selection screen.

4. Select the items that are listed in the invoice.

To proceed to the overview screen, choose*RWR→'RFXPHQWRYHUYLHZ .

5. Process the delivery costs. Choose (GLW → 'HOLYHU\FRVWV → 3ODQQHG → %\

SXUFKDVHRUGHU and enter the order number in the window.

When you press ENTER, a window is displayed in which the planned delivery costs arelisted.

Compare the delivery costs in the invoice with the planned delivery costs:

a) If the delivery costs of the invoice are not included in the list, they are unplanned.In this case, proceed to Unplanned Delivery Costs [Page 127].

b) If the delivery costs from the invoice are planned delivery costs, proceed asfollows:

6. Select the relevant delivery costs. Check the quantity and amount and, if necessary,change the proposed values. Choose Copy.

7. If you have made changes the system checks whether the resulting quantity or pricevariances are within the set tolerance limits. For each variance, the system displays awindow with a warning message. You can override the warning by selecting Continue

or you can correct your entries by selecting New entry. After the last message, youreach the document overview.

8. Choose 'RFXPHQW → 3RVW to post the document.




,QYRLFHIRU'HOLYHU\&RVWV2QO\

-XQH

,QYRLFHIRU'HOLYHU\&RVWV2QO\

To post an invoice containing delivery costs only, proceed as follows:

1. From the menu bar choose 'RFXPHQWHQWU\→(QWHULQYRLFH. You proceed to the

initial screen.


In the section 6HOHFW , enter the number of the invoicing party into the field9HQGRU



4. Now process the delivery costs. To do this, call up the planned delivery costs:

a) If the delivery costs refer to a purchase order, choose(GLW→'HOLYHU\FRVWV→

3ODQQHG→%\SXUFKDVHRUGHU and then enter the purchase order number in the

following window.

b) If the delivery costs refer to a bill of lading, choose(GLW→'HOLYHU\FRVWV→

3ODQQHG→ %\ELOORIODGLQJ and then enter the number of the bill of lading in the

following window.

c) If the delivery costs do not refer to a purchase order and no bill of lading is

specified, choose (GLW → 'HOLYHU\FRVWV → 3ODQQHG → %\YHQGRU and then enter

a date in the following window after which the delivery costs have been incurred.

When you press ENTER a window is displayed with a list of the planned freight costsand customs duty that the vendor can still invoice - referring to the purchase order or

bill of lading, if applicable.

Compare the delivery costs in the invoice with the planned delivery costs:

d) If the delivery costs in the invoice are not included in the list, they are unplannedsee alsoUnplanned Delivery Costs [Page 127].

e) If the delivery costs in the invoice are planned delivery costs, proceed as follows:

5. Select the relevant delivery costs. Check the quantity and amount and, if necessary,change the default values. Choose Copy.

6. If you have made changes, the system checks whether the resulting quantity andprice variances are within the set tolerance limits. For each variance, a window isdisplayed with a warning. You can override this message by selecting Continue or you

can correct your entries by selecting New entry. After the last message, you reach thedocument overview.

7. Choose 'RFXPHQW → 3RVWto post the document.





-XQH


Unplanned delivery costs are delivery costs that were not agreed upon in the purchase order andare not entered until the invoice is received. The following possibilities exist:

• Unplanned delivery costs refer to a purchase order, but have not been entered in thepurchase order.

If unplanned delivery costs refer to a purchase order, the system can determine theaccounts to which the costs must be posted from the purchase order. If there areseveral items in the purchase order, the system automatically distributes the costs onthe basis of the total values already invoiced.

Example: Distributing Unplanned Delivery Costs [Page 128]

• Unplanned delivery costs do not refer to a purchase order.

When you enter an invoice for delivery costs that do not refer to a purchase order, thesystem cannot allocate the costs and you have to tell it which accounts the deliverycosts should be posted to.

− if you know the material for which the delivery costs were incurred, you can debitthe costs directly to the material stock.

− if you do not know the material, you can post the costs to a G/L account. In thestandard system, there is a special G/L account for unplanned delivery costs thatcannot be allocated to any specific account.

Posting Unplanned Delivery Costs With Order Reference [Page 129]

Posting Unplanned Delivery Costs Without Order Reference [Page 132]




([DPSOH'LVWULEXWLQJ8QSODQQHG'HOLYHU\&RVWV

-XQH

([DPSOH'LVWULEXWLQJ8QSODQQHG'HOLYHU\&RVWV

Ordered:

100 pieces of material A at $20100 pieces of material B at $10

1st goods receipt

50 pieces of material A

1st invoice

50 pieces of material A at $20 = $1000

2nd goods receipt

50 St. Material A

80 pieces of material B2nd invoice

50 pieces of material A at $20 = $100050 pieces of material B at $10 = $ 500$XQSODQQHGGHOLYHU\FRVWV

The delivery costs are distributed to the individual items in proportion to theHQWLUH valueinvoiced. The total value invoiced is the total of all the values invoiced so far and the value of thepresent invoice already entered into the system.

In this case, there is a distribution in the ratio of 2000:500 = 4:1. $80 of the delivery costs are,therefore, allocated to material A, and $20 to material B.

If you want to distribute the costs differently, you cannot post them as deliverycosts. In this case, you must enter the costs as a subsequent debit.




3RVWLQJ8QSODQQHG'HOLYHU\&RVWV:LWK2UGHU5HIHUHQFH

-XQH

3RVWLQJ8QSODQQHG'HOLYHU\&RVWV:LWK2UGHU5HIHUHQFH

How you post unplanned delivery costs depends on the type of invoice you are processing:

• Goods Invoice Including Unplanned Delivery Costs [Page 130]

• Invoice for Unplanned Delivery Costs Only [Page 131]




*RRGV,QYRLFH,QFOXGLQJ8QSODQQHG'HOLYHU\&RVWV

-XQH

*RRGV,QYRLFH,QFOXGLQJ8QSODQQHG'HOLYHU\&RVWV

To post a goods invoice including delivery costs, proceed as follows:

1. From the menu bar choose'RFXPHQWHQWU\→(QWHULQYRLFH. The initial screen is

displayed.


Now enter the purchase order or the goods receipt/delivery note to which the invoicerefers in the section6HOHFW



Press ENTER to display the selection screen.

4. Select the items listed in the invoice.

To proceed to the overview screen, choose*RWR→'RFXPHQWRYHUYLHZ .

5. If you know for sure that the delivery costs are unplanned, read on under point 7. Ifyou are not absolutely certain, you should check whether the delivery costs areplanned. A list of the planned freight charges and customs costs be displayed by

selecting(GLW→'HOLYHU\FRVWV→3ODQQHG→ %\SXUFKDVHRUGHU .

Compare the delivery costs of the invoice with the planned delivery costs:

a) If you can copy over the planned delivery costs, proceed to Planned DeliveryCosts [Page 121].

b) If the delivery costs from the invoice are unplanned delivery costs, proceed as

follows:

6. Choose &DQFHO to leave the list of planned delivery costs.

7. Choose(GLW→'HOLYHU\FRVWV→8QSODQQHG to display a window where you can

enter the amount of the delivery costs. Press ENTER to display the documentoverview.

8. Choose 'RFXPHQW→6LPXODWH to determine which amounts were distributed to the

individual items. The following message appears:

'HOLYHU\FRVWVZLOOEHDSSRUWLRQHG

This message is confirmed by pressing ENTER and the document check is displayed.

9. To post the document, choose'RFXPHQW→3RVW .




,QYRLFHIRU8QSODQQHG'HOLYHU\&RVWV2QO\

-XQH

,QYRLFHIRU8QSODQQHG'HOLYHU\&RVWV2QO\

In the case of an invoice containing only the delivery costs for a purchase order (with unplanneddelivery costs), invoices must have already been entered for this purchase order; otherwise, thetotal values invoiced would be zero and, as a result, distribution of the delivery costs would notbe possible.

To post an invoice for delivery costs only, proceed as follows:

1. From the menu bar choose 'RFXPHQWHQWU\→(QWHULQYRLFH. The initial screen

appears.


Enter the number of the purchase order in the section6HOHFW



To proceed to the selection screen, press ENTER.

4. On the selection screen you select the items the delivery costs refer to. Set thecolumns$PRXQW and 4XDQWLW\ to zero for these items.

To proceed to the overview screen, choose*RWR →'RFXPHQWRYHUYLHZ.

5. If you know for sure that the delivery costs are unplanned, read on under point 7. Ifyou are not absolutely certain, you should check whether the delivery costs areplanned. To receive a list of the planned freight charges and customs costs, choose

(GLW →'HOLYHU\FRVWV →3ODQQHG→%\SXUFKDVHRUGHU .

Compare the delivery costs of the invoice with the planned delivery costs:a) If you can copy over the planned delivery costs, proceed to Planned Delivery

Costs [Page 121].

b) If the delivery costs in the invoice are unplanned delivery costs, proceed asfollows:

6. Choose&DQFHO to leave the list of the planned delivery costs.

7. Choose(GLW→'HOLYHU\FRVWV→8QSODQQHG . A window appears, in which you can

enter the amount of delivery costs. Press ENTER to display the document overview.

8. To see which amounts were distributed to the individual items, choose'RFXPHQW→

6LPXODWH. You receive the following message:

'HOLYHU\FRVWVZLOOEHDSSRUWLRQHG

If you confirm this message by pressing ENTER, you proceed to the document check.

9. To post the document, choose'RFXPHQW→3RVW




3RVWLQJ8QSODQQHG'HOLYHU\&RVWV:LWKRXW2UGHU5HIHUHQFH

-XQH

3RVWLQJ8QSODQQHG'HOLYHU\&RVWV:LWKRXW2UGHU

5HIHUHQFHTo post an invoice for delivery costs that cannot be allocated to a purchase order, proceed asfollows:

1. From the menu bar choose 'RFXPHQWHQWU\→(QWHULQYRLFH. The initial screen

appears.


In the section6HOHFW , enter the number of the invoicing party in the field9HQGRU .

To proceed to the vendor screen, press ENTER.


4. Select (GLW →1HZLWHP → ...

... →0DWHULDO , if you want to debit the costs to a material. A window appears, in which

you must enter the material number.

... →*/DFFRXQW , if you want to post the costs to a G/L account. A window appears,

in which you must enter the G/L account.

5. Fill out the window.

Press ENTER to display:

a) the material screen, if you debit the costs to a material.

b) the G/L account screen, if you debit the costs to a G/L account.

6. Depending on the processing type you select, fill out the material screen or the G/L

account screen. Choose *RWR →'RFXPHQWRYHUYLHZ to display the document

overview.

7. Choose 'RFXPHQW →3RVW to post the document.





-XQH


For unplanned delivery costs, a posting is made to the stock account of the material or to a G/Laccount when the invoice is posted. Here the costs cannot be split according to origin.

Purchase order :

Goods receipt for this purchase order:

100 pcs a $ 1.30 / pc

100 pcs

Planned delivery costs : None

Invoice 100 pcs a $ 1.30 / pc: ==

=

$130.00$10.00

$146.00

plus freight $ 0.10 / pcCustoms $6.00

Goodsreceipt

Balance sheet acct.

GR / IR account

Vendor account

Freight clearing

Customs clearing

130 +

130 -

Invoice

146 -

130 +

16 +(*)

In the case of materials valuated at a standard price or in the event of insufficient stock coverage,the posting marked with an asterisk (*) in the graphic above is made to a price differenceaccount.




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The postings for delivery costs differ depending whether the delivery costs are planned or not.

• For planned delivery costs, a posting from the stock account to a special clearingaccount, (such as a freight clearing account or a customs clearing account) is carriedout at goods receipt. This clearing account is then cleared when the delivery costs aresettled (this procedure is the same as that for offsetting the goods receipt and invoicereceipt to the GR/IR clearing account).

• For unplanned delivery costs, subsequent debits are posted with the invoice.

Clearing Planned Delivery Costs [Page 135]

Settlement of Unplanned Delivery Costs [Page 133]




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For planned delivery costs, the amounts are posted to clearing accounts at goods receipt,depending on the origin of the costs. The accounts involved are:

• Freight clearing account

• Customs clearing account

These postings are cleared when the delivery costs are settled.

Goodsreceipt

Balance sheet acct.GR / IR account

Vendor account

Freight clearing

Customs clearing

146 +130 -

Invoice

146 -

130 +

10

6

-

-

10

6

+

+

Purchase order

Goods receipt for this purchase order : 100 pcs

100 pcs a $ 1.30 / pc:Planned delivery costs :

Invoice 100 pcs a $ 1.30 / pc: ==

=

$130.00$10.00

$146.00

plus freight $ 0.10 / pcCustoms $6.00

Freight $ 0.10 / pc

Customs $ 6.00





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When a purchase order is created, the buyer can assign each order item to an account. Thefollowing must be specified:

• The account assignment category, for example, account assignment to a cost center,to an asset, etc.

• The number of the account to be debited

• The number of the cost center, asset, etc. to be debited

• Whether a goods receipt or an invoice receipt is expected for this purchase order

• Whether goods receipt is to be valuated or not

An item can be allocated to several account objects. For this type of multiple accountassignment, the buyer must also specify:

• How the order quantity should be distributed among the individual account assignmentobjects

• How the amount of an invoice for partial delivery should be distributed

As a rule, you cannot tell from an invoice whether it refers to an assigned purchase order. Onlyafter you have filled in the initial screen and the vendor screen can you see on the selectionscreen whether the purchase order includes account assignments.

The system creates an account assignment item for each account assignment.

Invoices for Purchase Orders With Account Assignment: Default Values [Page 138]Displaying and Changing Account Assignments [Page 139]

Invoices for Purchase Orders With Account Assignment: Account Movements [Page 140]




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$VVLJQPHQW'HIDXOW9DOXHVThe quantity defaulted by the system is the difference between the quantity delivered and thequantity already invoiced. The value results from the net order price.

For an item with multiple account assignment, please note the following:In the account assignment, the buyer determines which quantities are to be proposed for aninvoice for a partial delivery. The two options are:

• Distribution on a quantity basis, one assignment after the other

• Distribution proportional to the planned distribution

Ordered 100 pieces

Account assignment item 01 40 pieces

Account assignment item 02 60 pieces

Goods receipt 60 pieces

Proposed quantity for invoice entry:

quantity based proportional

Account assignment item 01 40 pieces 24 pieces

Account assignment item 02 20 pieces 36 pieces




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There are two ways you can display and in certain cases change the account assignment data inthe purchase order:

• Account assignments for all items

This function is only possible from the selection screen. Choose (GLW → 2YHUYLHZ →

/LVWIRUP.

The selection screen now has a new format. The system now displays the G/Laccount, plus the cost center, order, project, or asset for each item.

If you choose (GLW → 2YHUYLHZ → /LVWIRUP, the original selection screen format is

displayed. On this screen you can overwrite proposed values and quantities.

• Account assignment for an item

This function is possible in the selection screen, the document correction screen, andthe item screen. Position the cursor on the item line on the selection screen or the

document correction screenand choose ([WUDV → $FFRXQWDVVLJQPHQW .

A window appears with the account assignment data for the selected item.

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Whether the account assignment can be changed depends on two factors:

• Account assignment category

In the Customizing system of Purchasing you can determine for each accountassignment category whether users in Invoice Verification are allowed to changeaccount assignment data.

• Goods receipt indicator

In the purchase order you determine for each item whether a goods receipt can beposted for the purchase order and whether the goods receipt is to be valuated. Theaccount assignment cannot be changed if the goods receipt is valuated, i.e. it canonly be changed if no goods receipt takes place or the goods receipt is not valuated.

A change in account assignment only affects the postings for the invoice you are currentlyentering. The account assignments entered in the purchase order remain valid and are proposedas defaults when a further invoice is entered.




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$VVLJQPHQW$FFRXQW0RYHPHQWVThe account movements made when a purchase order with account assignment is posteddepend on whether the goods receipt was valuated or, if the invoice is entered before the goodsreceipt, will be valuated:

• If the goods receipt is valuated

At goods receipt a posting is made to the GR/IR clearing account. This amount will becleared when the invoice is posted.

• If the goods receipt is unvaluated

At invoice receipt the offsetting entry against the vendor posting is made directly to

the account specified in the purchase order (or the account specified in InvoiceVerification if the account assignment is changed).





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A subsequent debit/credit must be posted if a further invoice or credit memo is received after atransaction has been settled.

Subsequent Debits/Credits: Examples [Page 142]

When you post an invoice/credit memo as a subsequent debit/credit, please note the following:

• Each subsequent debit/credit is included in the purchase order history.

• When you post a subsequent debit/credit, the value of the order is updated, but notthe quantity. The invoiced quantity does not change.

• You can define subsequent debit/credit indicators to distinguish between differentreasons for subsequent debits/credits. For each indicator you determine the following:

− whether a price check should be made for the subsequent debit/credit

− the short text displayed in the purchase order history for the subsequentdebit/credit.

In the standard system there are two indicators:

− ; Subsequent debit/credit: general

− 6 Subsequent debit/credit: freight carrier

If your company requires a finer division, this can be defined by your systemadministrator in the Customizing system.

• When you enter a subsequent debit/credit, select the indicator in the field 6XEVHTXHQW

GHELWFUHGLW . You can select the indicator on two different screens:

− on the initial screen. The indicator will then be copied into all the order items.

− on the item screen of the item to which the subsequent debit/credit refers.

• The maximum quantity you can subsequently debit or credit is the quantity that hasalready been invoiced. It is not possible to post a subsequent debit before an invoice.

• If a price check is to be carried out by the system for a subsequent debit, the valueinvoiced to date plus the value of the subsequent debit is compared with theestimated value on the basis of the purchase order. The price check takes intoaccount the tolerance limits. If a price variance exceeds one of the upper tolerancelimits, the subsequent debit is blocked for payment.

Posting Subsequent Debit/Credits [Page 143]

Subsequent Debits/Credits: Account Movements [Page 144]





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Purchase order: 100 pieces of Material A at $10/pc


1st invoice:

50 pieces at $10/pc. = $500

2nd invoice

Unforeseen costs: $50 for 50 pieces

If you do not post the second invoice as a subsequent debit, the system would assume that youhave received another invoice for the purchase order (you would, however, receive warningmessages due to quantity and price variances). If you post it as an invoice, the quantity updatefor the purchase order would be incorrect; the system would update the invoiced quantity to 100pieces.

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Purchase order: 100 pieces of Material A at $10/pc.


1st invoice:

30 pieces at $10/pc = $300

2nd invoice:

20 pieces at $11/pc = $220

Credit memo:

Invoice amount too high by: $20 for 20 pieces

If you did not post the credit memo as a subsequent credit, the system would assume that youare entering a credit memo to cancel an invoice document. If you post it, the quantity updatewould be incorrect; the system would update the quantity invoiced to 30 pieces.




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To post a subsequent debit/credit, proceed as follows:

1. Fill out the initial screen. In the section6HOHFW , specify the purchase order to which thesubsequent debit/credit refers. Enter the indicator for the type of subsequentdebit/credit in question in the 6XEVHTXHQWGHELWFUHGLW field. To proceed to the vendorscreen, press ENTER.

2. Fill out the vendor screen. Press ENTER to display the selection screen. The orderitems are listed. The 4XDQWLW\ column contains the previously invoiced quantity; the9DOXH column is empty.. All the items are selected.

3. For those items to which the subsequent debit/credit applies, enter the amount and, ifnecessary, correct the quantity. Select the items that are affected by the subsequentdebit/credit.

4. After you have chosen*RWR →'RFXPHQWRYHUYLHZ , the system checks whether price

variances are caused by the subsequent debit/credit. If this is the case, youautomatically proceed to each individual item screen where there is a price variance.By pressing ENTER, you proceed from one item screen to the next and from the lastscreen to the document overview.

5. Choose 'RFXPHQW →3RVW to post the document, provided the balance equals zero.

The procedure described above applies to invoices/credit memos for which allitems are subsequent debits/credits. In the case of invoices/credit memos whichcontain normal items as well as subsequent debits/credits, first enter theinvoice/credit memo as a normal invoice/credit memo, that is, do not select thefield 6XEVHTXHQWGHELWFUHGLW on the initial screen. When you reach the documentoverview, branch to the item screens for the items which represent subsequentdebits/credits and enter the relevant subsequent debit/credit indicator.




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The account postings for a subsequent debit/credit depend on the quantity to which thesubsequent debit/credit applies:

• If the quantity of the subsequent debit/credit is smaller than or the same as thequantity delivered, the system tries to post the subsequent debit/credit to the stockaccount. If the material is valuated with a standard price or if there is insufficient stockcoverage for the quantity to be debited or credited, no posting can be made to thestock account. In this case, the posting is made to a price difference account.

• If the quantity of the subsequent debit/credit is larger than the quantity delivered, thesystem distributes the relevant amount proportionally. The part of the subsequentdebit/credit that does not have a goods receipt is posted to the GR/IR clearingaccount. The remaining amount is posted to the stock account - or in the case of

standard price control or insufficient stock coverage - to a price difference account.

The following example illustrates the accounts movements made for an invoicewhich is posted as a subsequent debit.

Goodsreceipt

Invoice Subsequentdebit

Stock account

GR/IR account

Vendor account

500 +

500 -

50 +

720 +

770 -

75 +

30 +

105 -

Purchase order: 100 pieces at $10/pc


Invoice: 70 pieces at $11/pc = $770

Invoice: $105 for 70 pieces (Subsequent debit)





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An invoice in foreign currency exists if the currency in the invoice is different from the currencydefined in your company code.

The system automatically translates the amounts entered in foreign currency to local currency.The following settings have to be maintained:

• The currency in which you enter the invoice must be defined in the system.

• An exchange rate between the foreign currency entered and the local currency mustbe entered. Different exchange rates can be defined for different periods.

Entering Invoices in Foreign Currency [Page 146]

Exchange Rate Differences [Page 148]

Exchange Rate Rounding Differences [Page 149]




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To enter an invoice in foreign currency, proceed as follows:

1. Fill out the initial screen. Enter the currency and the exchange rate in the followingfields:

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Enter the relevant currency key here. You can only enter currencies for which acurrency key is defined in the system. The system compares your entry with thepurchase order. If a fixed exchange rate has been entered in the purchase order, thesystem ignores your entry and uses the order currency.

([FKDQJHUDWH

You can enter an exchange rate in this field. The system compares your entry

a) with the purchase orderif a fixed exchange rate was entered there. In this case, the system overwritesyour entry and displays a message.

b) with the exchange rate stored in the system

The system displays a warning message if the variance is outside certaintolerance limits.

If you do not fill out the ([FKDQJHUDWH field, the system applies the stored exchangerate, taking into consideration the translation date that you enter into the 7UDQVODWLRQGDWH field.

7UDQVODWLRQGDWH

Here you can enter the date to be used for translating the amounts. If you do not fillout the 7UDQVODWLRQGDWH field, the system automatically sets the current date.

2. After you have pressed ENTER, the system proceeds to the vendor screen. Here, thecurrency of the amount and the cash discount base has already been changed to theforeign currency.

3. After you have filled out the vendor screen, you proceed to the selection screen bypressing ENTER. Here, the system proposes the amount in foreign currency in the $PRXQW column for each item. This amount is based on the exchange rate youdefined in the initial screen. Select the items you want to edit.

4. To proceed to the document overview, choose*RWR →'RFXPHQWRYHUYLHZ . The

system now checks whether there are variances.

When the system checks for price variances, it translates the amount tolerances intothe foreign currency. If there are variances, the system goes to the order item screenin question and issues a warning message requesting you to correct your entry.

5. If the balance is zero, you can choose 3RVW→'RFXPHQW

When you post the invoice, the amounts in the invoice document are displayed bothin your local currency and in the foreign currency.

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If you enter a document in foreign currency, the foreign currency is displayed on all screens,including the document overview and document check. From the'RFXPHQWFKHFN screen you

can also simulate the document in your local currency. To do this, choose(GLW →2YHUYLHZ →6ZLWFKFXUUHQF\ . The document is then displayed in local currency. If you return to the documentoverview from the document check, the system automatically changes back to the foreign

currency display. If you choose(GLW →2YHUYLHZ →6ZLWFKFXUUHQF\ within the document check,

the document is displayed in foreign currency again.




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If a purchase order is entered in foreign currency, translation from foreign currency into localcurrency has already been carried out when the goods receipt is posted. If you enter the invoicefor the purchase order in the foreign currency, it can lead to exchange rate differences betweenthe goods receipt and the invoice receipt. When you enter the invoice, a warning message isdisplayed on the initial screen. You can override this warning message by pressing ENTER andthen post the invoice.

In this case, the transaction is handled as a normal price variance:

• If the material is managed with a standard price, the variances are posted to anexchange rate difference account.

• If the material is managed with a moving average price, the stock account is debitedor credited automatically.

Material A with standard price control 10 $Material B with moving average price control

3XUFKDVHRUGHU 10 pcs material A at 10 SFR/pc10 pcs material B at 20 SFR/pc

Goods receipt (exchange rate 1.2)10 pcs material A10 pcs material B

Invoice (exchange rate 1.3)

10 pcs material A at 10 SFR/pc = 100 SFR (=130 $)

10 pcs material B at 20 SFR/pc = 200 SFR (=260 $)

= 300 SFR (=390 $)


Stock account 100 +


Price difference account 20 +Exchange rate difference 10 +

Stock account B 240 + 20 +






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For each invoice in foreign currency, the amounts are translated into local currency during theposting. Due to rounding off of amounts in each individual posting line, exchange rate roundingdifferences can occur.

Exchange rate rounding differences are posted to an expense account or an income account.During the document check, the system displays a posting line for the corresponding account.The amount 0.00 is posted in the foreign currency. Only when the translation into local currencytakes place are the differences posted to this account.





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An invoice has a different payee if the invoice payment is not to be credited to the invoicing partydefined in the purchase order. In the SAP system, this procedure is controlled in two ways:

• The different payee is known when the invoice is posted

The invoice is posted to another vendor account. The payment program thenaccesses this account. A vendor master record must be maintained for the differentpayee.

• The different payee is known only at the time of payment by the payment program inFinancial Accounting.

The invoice is posted to the account of the vendor with whom the purchase order wasplaced. The payment program executes the posting from this vendor to the bank

account of the different payee. In this case, you are not required to create a vendormaster record for the different payee.

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If you do not want to post an invoice to the account of the invoicing party defined in the purchaseorder, there are two options available:

• Automatic replacement by a head office

To post an invoice to a head office:

− a vendor master record must be created for the head office

− the head office must be entered in the vendor master record of the invoicing party

defined in the purchase order.

If you now enter a purchase order for a vendor with a head office on the initial screenin the section6HOHFW , the system replaces the vendor by the head office. You receivea message indicating that the vendor has been replaced by the head office and youproceed automatically to the vendor screen of the head office.

• Manual replacement when entering an invoice

If you want to post an invoice to a different vendor account than the one specified inthe purchase order, you must enter the purchase order number in the field 3XUFKDVHRUGHUDQG the actual invoicing party in the field 9HQGRU on the initial screen. Amessage appears, indicating that the vendor in the purchase order has been replacedby the vendor you entered. The vendor screen of the vendor entered appears.

If the invoice you are processing does not specify that the invoicing party is not thesame as the invoicing party defined in the purchase order, you only enter thepurchase order on the initial screen. The vendor screen for the vendor in thepurchase order is displayed. You cannot change the vendor here. You must return tothe initial screen and enter the order number in the field 3XUFKDVHRUGHU and theactual invoicing party in the field 9HQGRU .

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If you want to post an invoice to the account of the vendor from the purchase order, but thepayment should be made to a third party, this must be allowed in the vendor master record of the





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vendor in question. For this purpose, the 3D\HHLQGRFXPHQWfield must be selected. If this is thecase, the system proposes the 'LIIHUHQWSD\HH field on the vendor screen when you enter the

invoice. If you select this field, the system branches to a screen in which you enter the data of thedifferent payee. Afterwards, you automatically return to the selection screen to continueprocessing.





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One-time vendors are vendors that supply your company only once or very rarely. It is notrecommended to set up master records for these vendors in the system since access to this datais no longer or rarely needed after the original transaction. It would be too time-consuming tocontinue to maintain this data.

Therefore, summary accounts are set up for one-time vendors. These accounts are also referredto as one-time accounts.

Since these accounts are used for several vendors, no vendor-specific data can be defined in themaster record for the account. Therefore, data such as address, salesperson, bank data, and soon, must be entered in Purchasing or Invoice Verification.

Invoices from one-time vendors are posted like normal invoices, with the following exceptions:

• Between the initial screen and the vendor screen, you see a screen for the addressand bank data of the vendor. You must enter the appropriate data from the invoice on

this screen. If you post an invoice with a reference, some of the fields such as thevendor address, will have already been filled out when the purchase order wasentered.

• If you post an invoice without a reference, you must decide which one-time accountyou want to post to. Enter the number of this account on the initial screen in the9HQGRU field.





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Consignment goods are stored within your company but belong to a vendor. The vendor suppliesthese goods so that they are available to you at any time, but does not charge you for them. Onlywhen you have withdrawn stock does payment become due for the quantities used.

A pipeline material is a material which flows directly from a pipeline (such as an oil pipeline), apipe (such as a water pipe), or any other type of line (such as an electricity connection) into theproduction process. Every time material is consumed, payment is due for the liability.

You do not receive invoices from the vendor for consignment materials or materials withdrawnfrom the pipeline, but settle the withdrawals posted yourself and send the vendor a statement.You can settle pipeline and consignment liabilities periodically in the background.

Consignment settlement is integrated with message determination, allowing your to define alayout set for settlement in Customizing. Whenever you run the settlement program, the system

generates a message record that fills the layout set. Depending on how your system isconfigured, you can either send the form directly to the vendor when you post or at a later point.

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Displaying Consignment/Pipeline Withdrawals [Page 154]

Settling Consignment/Pipeline Withdrawals [Page 155]

Consignment Settlement: Account Movements [Page 156]




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To display consignment/pipeline withdrawals, proceed as follows:

1. Choose )XUWKHUSURFHVVLQJ →6HWWOHFRQVSLSHOLDEV. The selection screen is

displayed

2. Enter the criteria according to which the consignment/pipeline withdrawals are to belisted. You can narrow down your selection to company code, vendor, plant, material,document date, posting date, and material document (of withdrawal).

Define whether you only want to display consignment transactions, pipelinetransactions or both.

In the 3URFHVVLQJ screen box, select 'LVSOD\ .

In the 'LVSOD\RSWLRQV screen box, define whether you want to display withdrawalsthat have been settled or those not yet settled. You can further limit the selection ofsettled withdrawals to certain invoice documents.

3. Choose 3URJUDP →([HFXWH.

5HVXOW

A list is displayed of the withdrawals and (if you selected 6HWWOHGZLWKGUDZDOV) the respectiveinvoices.

Settlement of consignment and pipeline withdrawals has changed considerably for Release 4.0.As a result, the list of results does not include withdrawals posted before Release 4.0. To displaythese withdrawals, run report RMVKON90, which corresponds to the previous report for settlingwithdrawals prior to 4.0




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To settle consignment/pipeline withdrawals, proceed as follows:

1. Choose )XUWKHUSURFHVVLQJ →6HWWOHFRQVSLSHOLDEV. The screen for selecting

liabilities from consignment stores is displayed

2. Enter the selection criteria for determining the consignment/pipeline withdrawals youwant to settle. You can narrow down your selection to company code, vendor, plant,material, document date, posting date, and material document (of withdrawal).

Define whether you only want to settle consignment transactions, pipelinetransactions or both.

In the 3URFHVVLQJ screen box, select 6HWWOH.

In the 'LVSOD\RSWLRQV screen box, define whether you want to display withdrawalsthat have been settled or those not yet settled. You can further limit the selection ofsettled withdrawals to certain invoice documents.

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The system generates an invoice document in line with your selection for every company code,vendor and currency and displays a list of the settled withdrawals.

The system also generates a message record. This allows you to print a letter of consignment forinforming the vendor or send it directly by fax.

Settlement of consignment and pipeline withdrawals has changed considerablyfor Release 4.0. As a result, the list of results does not include withdrawals postedbefore Release 4.0. To display these withdrawals, run report RMVKON90, whichcorresponds to the previous report for settling withdrawals prior to 4.0




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When you settle consignment withdrawals, the liabilities created on withdrawal are cleared. Theoffsetting entry is posted to the vendor account.

The system determines which taxes are to be posted for each item from the consignmentor pipeline information record.

You carry in stock material A from vendor X in your consignment stores at aconsignment price of $ 10 per piece. When you withdraw 100 pieces forconsumption and then settle the consignment withdrawal, the system makes thefollowing postings:

:LWKGUDZDO &RQVLJQPHQWVHWWOHPHQW

Consumption account 1000 +

Consignment liabilities 1000 - 1000 +


Tax account 150 +

When the system posts to the liabilities account, it generates the allocation number automaticallyfrom the material document number and the item number both during the withdrawal itself andduring settlement. This enables the open items to be cleared in Financial Accounting.




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Invoices or credit memos received by EDI that refer to a transaction in the system can be enteredautomatically in Invoice Verification. Two procedures are possible:

• The invoice/credit memo is parked using the preliminary posting function and laterposted after checking by the accounts payable clerk.

• The invoice/credit memo is posted directly if no error occurs.

Invoices/credit memos received by EDI that do not refer to a transaction in the system cannot beentered automatically in Invoice Verification. This can only be done in Financial Accounting.

Your system administrator makes the following settings in the Customizing system of FinancialAccounting:

• The rules according to which EDI invoices are entered in the system

• Who should be informed when EDI invoices are received

How EDI invoices are processed in Invoice Verification depends on whether they are parked ordirectly posted:

• If invoices are parked

You create a list of all the parked documents and process the list.

• If invoices are directly posted

You only have to intervene if errors occur which prevent the invoice from beingposted. There can be two types of error:

− The system settings relevant to the business partner have not been properlymaintained.

You have to correct these settings together with the system administrator. Onceyou have done this, the document can be posted automatically.

− The data received contains errors.

You have to contact the issuer of the invoice and ask for a new invoice to be sent.




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Evaluated Receipt Settlement (ERS) allows you to settle goods receipts without receiving aninvoice.

Based on the order price specified in the purchase order and the quantity entered on the goodsreceipt, the system can determine the correct invoice amount. The system also obtains taxinformation and terms of payment from the purchase order. This information allows the system tosettle without having to process a vendor invoice.

The Evaluated Receipt Settlement (ERS) function has the following advantages:

• Reduction of steps involved in the purchasing/receipt/invoice/payment cycle

• Reduction of clerical errors

• Elimination of price and quantity variances in the Invoice Verification process

The system maintains a log of ERS transactions. This log can be printed out and sent to thevendor as an indication of settlement.




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The Evaluated Receipt Settlement function can only be used for goods that have been orderedon a purchase order. Only purchase orders with a known, exact price at the time of issue shouldbe settled with ERS. Purchase orders issued without an exact price must continue to be settledmanually.

In view of the above, the creator of the purchase order has the options of:

• Flagging the vendor in the vendor master record as being subject to ERS

• Flagging a purchasing information record as being non-ERS (this can be done only ifthe vendor is subject to ERS)

• Flagging a particular line item within a purchase order as being ERS-relevant (this canonly be done if the vendor is subject to ERS)

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If the vendor is subject to ERS, the system will automatically set all line items as being ERS-relevant. The ERS indicator can be removed for any particular line item.

The system will not set the ERS indicator on an item if the purchasing information record hasbeen flagged as non-ERS.




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Evaluated Receipt Settlement (ERS) is carried out in two steps:

• Selecting Transactions [Page 162]

• Processing the Log [Page 163]

The Evaluated Receipt Settlement program, 500556can be run in thebackground. Let your system administrator know which variants of this programare to be created and which jobs have to be defined.




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When you run the Evaluated Receipt Settlement program, there are three criteria that must bemaintained:

• Transaction criteria

You can select by:

− Posting date of the goods receipts

− Vendor

− Company code

− Purchase order and order item

− Goods receipt document number

− Fiscal year

• Invoice criteria

One invoice document can be created:

− per vendor

− per purchase order

− per order item

− per goods receipt document (only if goods-receipt-based invoice verification hasbeen defined)

• Test modeIn test mode the system does not make any postings. We recommend you run testmode to find out:

− ERS transactions due for settlement

− ERS transactions that cannot be settled automatically due to errors or incompleteinformation




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The Evaluated Receipt Settlement programcreates a log of:

• Transactions that were settled

The system displays all the order items which were settled (or which would have beensettled if operating in test mode) based on the selection parameters.

• Transactions that were not settled

The system displays all the order items which were NOT settled (or which would havebeen settled if operating in test mode) based on the selection parameters. Thesystem also displays the reason why an item was not able to be settled. Possiblereasons include:

Reason 1RWD[ code entered in the order item.Solution Change the purchase order by entering a tax code on the item.

Reason An invoice has been entered manually for this item.

Solution This line item cannot be processed by ERS. Once a manual invoice hasbeen posted for a line item, the line item cannot be settled with ERS. Toremove this item from the error report, run ERS in test mode, select theitem and choose ([FOXGHIURP(56 Other line items on the same purchaseorder may only be settled with ERS if one invoice per line item has beenselected.






1. From the Invoice Verification menu, choose )XUWKHUSURFHVVLQJ →([HFXWH(56The selection screen appears.

2. Enter the selection parameters. If you only wish a test run, select the field 7HVWPRGH.

3. Choose 3URJUDP →([HFXWH

A log of the Evaluated Receipt Settlement run is displayed.