This document provides an overview of invoice and credit note processing in SAP Accounts Payable. It discusses the key differences between processing purchase order (PO) related and non-PO related invoices and credit memos. For PO related documents, it describes the 3-way matching process known as logistics invoice verification. It also reviews functions for reversing documents, changing documents, and displaying posted documents.
2. Course Agenda
Unit 1: Introduction
Unit 2: Master Data
Unit 3: Invoice and Credit Note Processing
Unit 4: Payments
Unit 5: Inquiries
Unit 6: Reporting
Unit 7: Vendor Reconciliation
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3. Unit Objectives
At the completion of this unit, you will be able to:
Understand non-Purchase Order and Purchase Order related
invoice and Credit Memo processing.
Perform non-Purchase Order related invoice and Credit Memo
processing
Perform purchase invoice processing through Logistics Invoice
Verification
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4. Key Terms
2 Way- Match Concept
3 Way-Match Concept
Logistics Invoice Verification
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5. SAP R/3 Process
Represents a process within LIMS
Represents a manual process outside of LIMS
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6. In Summary – PO Related Invoices
3 Way Match Concept
Two way match concept
1. Purchase 2. Invoice 3. Approval 4. Payment
Order Receipt obtained
2 FI documents created to record Dr and Cr
entries
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7. Non-PO Related Invoices and Credit Memos
Invoices and Credit Memos not requiring a Purchase Order are
entered directly into SAP through the Accounts Payable
module.
Approvals:
- Can be approved before they are entered into SAP R/3.
- Can be entered and blocked for payment then trigger non-PO
workflow
Examples of purchases that do not require a Purchase Order
are:
- Utilities
- Contributions
Note: See Admin Policy 601
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8. SAP Accounts Payable Module Screen –
Non-PO Invoice and Credit Note Processing
Non-PO Invoice
Entry Transactions
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9. Non-PO Invoice Entry (FB60)
Note: May need to set
your editing options to
make document type
visible
Net doc type: Invoice amount less the
discount posts to the expense
account
Gross doc type: Full amount posts to
expense account; discount taken
will post to cash discount account
during payment run 9
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10. PO Related Invoices and Credit Memos
Invoices requiring a purchase order are entered into the
Materials Management module of SAP R/3 through Logistics
Invoice Verification in order to verify them against the Purchase
Order (PO) and the Goods Receipts (GR).
In SAP R/3, 3-way matching process is known as Invoice
Verification.
Invoices which fall outside the price/quantity tolerances are
blocked from payment.
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11. SAP Accounts Payable Module Screen – PO Invoice and
Credit Note Processing
Invoice Verification
Transactions
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12. PO Related Invoice – Displaying PO (ME23N)
PO History tab
allows you to see
any goods
receipts, invoices
posted
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13. PO Related Invoice – Entry via LIV (MIRO)
Selecting calculate tax tells the
system to determine amount,
versus you entering it directly
Entry of PO number results in
lines below being populated.
Accounting treatment is derived
from PO.
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14. PO Related Invoice – LIV – Details Tab
Freight charges can be
entered via the
Unplanned Delivery Costs If remit-to information is
incorrect, use Inv. Party
to select correct vendor
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15. PO Related Invoice – LIV – Payment Tab
Note: remember to check the
payment terms after selecting a new
remit-to vendor, as this may have
changed the terms originally
defaulted form the PO
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16. PO Related Invoice – LIV – Simulation
Provides overview of the Acctg doc to be posted
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17. Logistics Invoice Verification
Invoice Verification is the process of entering and checking
vendor invoices. The invoices are verified against the Purchase
Order and Goods Receipt or an approval is obtained.
In SAP R/3, 3-way matching process is known as Invoice
Verification.
Credit memos with reference to a PO are posted to the MM
module through the invoice verification process also.
Matching Process:
Vendor Goods
Vendor
Invoice = Purchase = Receipt or
Order Approval
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18. Other Accounts Payable Processing Functions
Reverse a Document
Display Documents
Change Documents
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19. Transactions for Additional Functionality
Display Change
Transactions
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20. Reversing Vendor Invoices
If documents are entered incorrectly, they can be reversed.
Reversing open invoices prevents the invoice from any further
processing.
An invoice may be reversed if the invoice has not been
selected for payment or a check has not been generated
through the payment program.
The invoice must be reversed through the module in which it
was posted.
- Non-PO Invoices - posted in FI/AP, must be reversed in FI/AP.
- PO Invoices - posted in MM/LIV, must be reversed in MM/LIV.
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21. Reversing Documents – Transaction Codes
FI/AP Reversal Transactions MM/LIV Reversal Transactions
Note: Currently auto-clear program
does not work for MR8M
reversals; must clear manually
via F-44
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22. Change/Display Documents
It is possible to change certain fields on a posted invoice or
credit note
- Reference field
- Payment Terms
- Text fields
Similar to reversing a document, an invoice posted in FI/AP is
changed in the FI/AP module and an invoice posted in MM/LIV
is changed in MM /LIV.
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23. Display Documents Posted
It is possible to display a list of transactions for a particular
user, date range, and/or doc type.
Transaction FB03 (select list will bring up this screen):
Possible
Selection
Screen
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