726 bb configguide en in

EHP3 for SAP ERP 6.0

September 2009

English

726: Invoice Verification

SAP AGDietmarr-Hopp-Allee 1669190 WalldorfGermany

Building Block Configuration Guide

SAP Best Practices 726: Invoice Verification: Configuration Guide

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Example

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Type Style Description

Example text Words or characters that appear on the screen. These include field names, screen titles, pushbuttons as well as menu names, paths and options.

Cross-references to other documentation.

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<Example text> Variable user entry. Pointed brackets indicate that you replace these words and characters with appropriate entries.

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Contents

1 Introduction................................................................................................................................. 5

2 Preconditions.............................................................................................................................. 5

2.1 Invoice Verification............................................................................................................5

3 Configuration............................................................................................................................... 5

3.1 Setting Tolerance Limits....................................................................................................5

3.2 Maintaining Vendor-Specific Tolerances............................................................................8

3.3 Maintaining Vendor Master Records..................................................................................9

3.4 Maintaining Document Type for Invoice Reduction...........................................................10

3.5 Maintaining Document Type for Revaluation....................................................................11

3.6 Tax Defaults in Invoice Verification..................................................................................11

3.7 Tax Treatment in Invoice Reduction.................................................................................12

3.8 Mail to Purchasing Organization for Price Changes..........................................................13

3.9 Setting RA Document Type as Internal Number Range....................................................13

3.10 Maintaining Condition Records for Input Tax....................................................................13

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Invoice Verification

1 IntroductionThis scenario involves the following processes:

Invoice Verification

Logistics Invoice Verification is part of Materials Management (MM). At the end of the supply chain, which comprises purchasing, inventory management, and invoice verification, invoice verification is used to check the incoming invoice to ensure that it is correct with regard to content, price, and quantity. When the invoice is posted, the invoice data is saved in the system. The system updates the saved invoice document data in Materials Management and Accounting. Logistics Invoice Verification is closely related to the associated SAP components Financial Accounting (FI) and Controlling (CO). It forwards invoice payment and analysis data to these components.

2 PreconditionsBefore you start installing this building block, you must install prerequisite building blocks. For more information, see the building block prerequisite matrix (Prerequisites_Matrix_[xx]_EN_IN.xls; the placeholder [xx] depends on the SAP Best Practices version you use, for example, Retail refers to the SAP Best Practices for Retail Package: Prerequisites_Matrix_RET_EN_IN.xls). This document can be found on the SAP Best Practices documentation DVD in the folder..\BBLibrary\General\.

2.1 Invoice VerificationYou need to make the following settings to carry out Logistics Invoice Verification.

Maintain tolerance limits

Maintain vendor-dependent tolerances

Maintain vendor master records

Maintain message conditions for outputting messages.

3 Configuration

3.1 Setting Tolerance Limits

UseIn this step, you define the tolerance limits for each tolerance key in each company code.

When an incoming invoice is processed, the system checks for each item whether the invoice differs in any way from the purchase order or goods receipt. You can define the types of discrepancy using tolerance keys.

The following tolerance keys carry out their respective tolerance checks:

AN: Amount for item without order reference

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If you activate the item amount check, the system checks every line item in an invoice with no order reference against the absolute upper limit defined.

AP: Amount for item with order reference

If you activate the item amount check, the system checks specific line items in an invoice with order reference against the absolute upper limit defined. Which invoice items are checked depends on how you configure the item amount check.

BD: Form small differences automatically

The system checks the balance of the invoice against the absolute upper limit defined. If the upper limit is not exceeded, the system automatically creates a posting line called Expense / Income from Small Differences, making the balance zero and allowing the system to post the document.

BR: Percentage OPUn Variance (IR before GR)

The system calculates the percentage variance between the following ratios: quantity invoiced in order price quantity units : quantity ordered in order units. The system compares the variance upper and lower percentage tolerance limits.

BW: Percentage OPUn Variance (GR before IR)

The system calculates the percentage variance between the following ratios: quantity invoiced in order price quantity units: quantity invoiced in order units and goods receipt quantity in order price quantity units : goods receipt quantity in order units. The system compares the variance with the upper and lower percentage limits defined.

DQ: Exceed amount: quantity variance

If a goods receipt has been defined for an order item and a goods receipt has already been posted, the system multiplies the net order price by (quantity invoiced – (total quantity delivered – total quantity invoiced)).

If no goods receipt has been defined, the system multiplies the net by (quantity invoiced – (quantity ordered – total quantity invoiced)).

The system compares the outcome with the absolute upper and lower limits defined.

This allows relatively high quantity variances for invoice items for small amounts, but only small quantity variances for invoice items for larger amounts.

You can also configure percentage limits for the quantity variance check. In this case, the system calculates the percentage variance from the expected quantity, irrespective of the purchase order price and compares this with the percentage limits defined.

The system also carries out a for planned delivery costs.

DW: Quantity variance when GR qty = zero

If a goods receipt is defined for an order item but none has as yet been posted, the system multiplies the net order price by (quantity invoice + total quantity invoiced so far).

The system then compares the outcome with the absolute upper limit defined.

If you have not maintained tolerance key DW for your company code, the system blocks an invoices for which no goods receipts has yet been posted. If you want to prevent this block, set the tolerance limits for your company code for tolerance key DW to 'Do not check'.

KW: Var. from condition value

The system calculates the amount by which each delivery cost item varies from the product of quantity invoice * planned delivery costs / planned quantity. It compares the variance with the upper and lower limits defined (absolute limits and percentage limits).

LA: Amount of blanket purchase order

The system calculates the sum of the value invoiced so far for the order item and the value of the current invoice and compares it with the value limit of the purchase order. It then compares the difference with the upper percentage and absolute tolerances defined.

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LD: Blanket PO time limit exceeded

The system determines the number of days by which the invoice is outside the planned time interval. If the posting date of the invoice is before the validity period, the system calculates the number of days between the posting date and the start of the validity period. If the posting date of the invoice is after the validity period, the system calculates the number of days between the posting date and the end of the validity period. The system compares the number of days with the absolute upper limit defined.

PP: Price variance

The system determines by how much each invoice item varies from the product of quantity invoiced X order price. It then compares the variance with the upper and lower limits defined (absolute limits and percentage limits).

When posting a subsequent debit/credit, the system first checks if a price check has been defined for subsequent debit/credits. If so, the system calculates the difference between (value of subsequent debit/credit + value invoiced so far) / quantity invoiced so far * quantity to be debited/credited and the product of the quantity to be debited/credited * order price and compares this with the upper and lower tolerance limits (absolute limits and percentage limits).

PS: Price variance: estimated price

If the price in an order item is marked as an estimated price, for this item, the system calculates the difference between the invoice value and the product of quantity invoiced * order price and compares the variance with the upper and lower tolerance limits defined (absolute limits and percentage limits).

When posting a subsequent debit/credit, the system first checks if a price check has been defined for subsequent debit/credits. If so, the system calculates the difference between (value of subsequent debit/credit + value invoiced so far) / quantity invoiced so far * quantity to be debited/credited and the product of the quantity to be debited/credited * order price and compares this with the upper and lower tolerance limits (absolute limits and percentage limits).

ST: Date variance (value x days)

The system calculates for each item the product of amount * (scheduled delivery date – date invoice entered) and compares this product with the absolute upper limit defined. This allows relatively high schedule variances for invoice items for small amounts, but only small schedule variances for invoice items for large amounts.

VP: Moving average price variance

When a stock posting line is created as a result of an invoice item, the system calculate the new moving average price that results from the posting. It compares the percentage of the new moving average price to the old price using the percentage tolerance limits defined.

Variances are allowed within predefined tolerance limits. If a variance exceeds a tolerance limit, however, the system issues a message informing the user. If an upper limit is exceeded (except BD and VP), the invoice is blocked for payment when you post it. You must then release the invoice in a separate step. If the tolerance limit for BD is breached, the system cannot post the invoice.

Note that if you set all limits for a tolerance key to 'Do not check', the system does not check that tolerance limit. Therefore any variance would be accepted. This does not make sense particularly in the case of the tolerance key 'Form small differences automatically'.

Procedure

This procedure is only for educational and reference purpose. The data is already maintained in the standard customizing, no additional activities are required.

1. Access the activity using one of the following navigation options:

Transaction code OMR6

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IMG menu Materials Management Logistics Invoice Verification Invoice Block Set Tolerance Limits

2. Select the key you require (company code / tolerance key)

3. Choose Details.

4. Choose Check limit.

5. Make the following entries:

CoCd

TIKy Lower limit

Absolut

Check

Upper limit

Absolut

Check

Lower limit

Absolut

No Check

Upper limit

Absolut

No check

Lower limit

%

Check

Upper limit

%

Check

Lower limit

%

No Check

Upper limit

%

No check

1000 AN X

1000 AP X

1000 BD 1.75

1000 BR 20,00 10,00

1000 BW 5,00 5,00

1000 DQ 93.1 X 5,00 5,00

1000 DW 1750

1000 KW 358.05 358.05 5,00 5,00

1000 PP 93.1 93.1 10,00 10,00

1000 PS X X 10,00 X

1000 ST 17500

1000 VP X X

6. Choose Save.

3.2 Maintaining Vendor-Specific Tolerances

UseIn this step, you define tolerance groups in each company code, which can be assigned to each vendor in the vendor master record.

Procedure1. Access the activity using one of the following navigation options:

Transaction code SPRO

IMG menu Materials Management Logistics Invoice Verification Incoming Invoices Configure Vendor-Specific Tolerances

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2. Select the key you require (company code / tolerance group).

3. Choose Details or choose New Entries.

4. Set the Check limit indicator for the required limits with the associated limit value.

Sample settings:

Automatic acceptance of positive / negative differences

When you post invoices with debit/credit differences, the system automatically creates a difference line for a neutral expense or revenue account based on small differences that lie within the tolerance area.

Absolute lower limit: 7000.00 -

Percentage lower limit: 4.00 %

Negative small difference: 350.00 -

Positive small difference: 175.00

Absolute upper limit: 1750.00

Percentage upper limit: 2.00 %

Automatic invoice reduction

IF THE DIFFERENCE IS WITHIN THIS TOLERANCE RANGE, THE SYSTEM POSTS THE DIFFERENCE TO A CLEARING ACCOUNT AND GENERATES A CREDIT MEMO IN A SECOND DOCUMENT TO CLEAR THIS.

Absolute upper limit: 1400.00

Percentage upper limit: 5.00 %

Once you have maintained the tolerance group, you have to assign it to the vendor (see 3.3 "Maintaining Vendor Master Records").

3.3 Maintaining Vendor Master Records

UseTo carry out invoice verification, you have to make certain settings in the vendor master record.

To carry out automatic goods receipt settlement, set the "AutoEvalGRSetmt Del." indicator in the vendor master record.

To carry out revaluations, set the "Revaluation allowed" indicator in the vendor master record.

You have to maintain the tolerance group in the vendor master record for the "vendor-specific tolerances".


Transaction code XK02

IMG menu Retailing Master Data Vendor Data Edit Vendors Vendor Change Central

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2. In the file of Vendor, enter Vendor 1.

3. In the file of Company code, enter 1000.

4. In the file of Purch.Organization, enter 1000.

5. In the file of Company code data: select the Payment transaction indicator.

6. In the file of Purchasing organization data: select the Purchasing data indicator.

7. Choose Enter.

Payment transaction:

To be able to use the vendor-specific tolerances for this vendor, maintain the tolerance group in the vendor master record.

In the field of Invoice verification enter Tolerance Group 0001.

Purchasing Data

To carry out automatic invoice verification, set the AutoEvalGRSetmt Del. indicator.

To carry out revaluations, set the Revaluation allowed indicator.

3.4 Maintaining Document Type for Invoice Reduction

UseThe ECC System creates documents in Financial Accounting when incoming invoices are posted and groups together these documents using document types.

In this step, you:

Define the document types

Assign each document type to a number range

Assign document types to the Logistics Invoice Verification transactions



IMG menu Materials Management Logistics Invoice Verification Incoming Invoice Number Assignment Maintain Number Assignments for Accounting Documents

2. Choose Document Type, and create new entry for Document type RK (Invoice reduction)

3. Choose Document Types In Invoice Verification, and choose Transaction MIRO

4. Enter RK in the field of Document type invoice reduction.


Document type RK

Number range 51

Reverse doc. type RK

6. Account types allowed: Assets

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endor

rticle

/L account

7. Assign document type RK to transaction MIRO

Doc.Type invoice reduction RK.

3.5 Maintaining Document Type for Revaluation

UseThe ECC System creates documents in Financial Accounting when incoming invoices are posted and groups together these documents using document types.

In this step, you:

Define the document types

Assign each document type to a number range

Assign document types to the Logistics Invoice Verification transactions



IMG menu Materials Management Logistics Invoice Verification Incoming Invoice Number Assignment Maintain Number Assignments for Accounting Documents

2. Choose Document Type, and create new entry for Document type NB (Revaluation)

3. Choose Document Types In Invoice Verification, and choose transaction MRNB

4. Enter NB in the field of Document type.


Document type NB

Number range : 51

6. Account types allowed: Assets

Vendor

Article

G/L account

7. Assign document type NB to transaction MRNB

Document type NB.

3.6 Tax Defaults in Invoice Verification

Use

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In this step, you define for each company code which tax code(s) the SAP System suggests when you enter incoming invoices.



IMG menu Materials Management Logistics Invoice Verification Incoming Invoice Maintain Default Values for Tax Codes

2. Create a new entry for your Company Code (here 1000).

Company Code 1000

Defaults, domestic

Tax code V0

3. Choose Save.

3.7 Tax Treatment in Invoice Reduction

UseIn this step, you can configure how taxes are to be posted for invoice reduction.

The system creates two accounting documents for invoice reduction. The first document (original document) contains the invoice data sent by the vendor. The second document (complaint document) contains information about the invoice reduction.

If the tax reduction is carried out in the complaint document , the taxes in the original document correspond to those in the vendor invoice. The tax amount for the invoice reduction is credited in the complaint document.

If the tax reduction is carried out in the original document , the taxes in the original document are reduced by the tax amount for the invoice reduction. In this case, the complaint document does not contain any tax postings. This procedure is particularly recommended if you have the system calculate the taxes automatically.



IMG menu Materials Management Logistics Invoice Verification Incoming Invoice Tax Treatment in Invoice Reduction


Company Code 1000

Tax for Invoice reduction „Tax reduction in complaint document“.

3. Choose Save.

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3.8 Mail to Purchasing Organization for Price Changes

UseIn this step, you configure for each company code if the system is to automatically inform the buyer via e-mail about price variances.



IMG menu Materials Management Logistics Invoice Verification Incoming Invoice Define Mail to Purchasing When Price Variances Occur


3. In the field of Company Code, enter 1000.

4. Choose Save.

3.9 Setting RA Document Type as Internal Number Range

Procedure 1. Access the activity using one of the following navigation options:


IMG menu Financial Accounting (NEW) Financial Accounting Global Settings (New) Document Document Number Ranges Documents in Entry View Define Document Number Ranges for Entry View

2. On the Number Ranges For Accounting Documents screen, make the following entry:

Field name Description User action and values Note

Company Code 1000

3. Choose Change Intervals.

4. On the Maintain Number Range Intervals screen, choose Insert Interval.

5. In the Insert Interval dialog box, make the following entries: (After each entry choose Insert. Then again choose Insert Interval.)

No To Fiscal Year From No. To No. External

51 9999 5100000000 5199999999

6. Choose Save.

3.10 Maintaining Condition Records for Input Tax

Procedure

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1. Access the activity using the following navigation option:

Transaction code FV11

2. Maintain input tax master using the following data:

Condition type Country Tax code

MWVS IN TU

MWVS IN V0

MWVS IN VC

3. Choose Save.

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