Unit 3: Invoice and Credit Note Processing

SAP-ERP

Accounts Payable
Version 1.0

Unit 3: Invoice and Credit Note Processing

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 Unit 3: Invoice and Credit Note Processing

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

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 Unit 3: Invoice and Credit Note Processing

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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 Unit 3: Invoice and Credit Note Processing

Transaction Codes

Finance module- Non-Purchase order related invoices

 AP Invoice Entry FB60
 AP Credit Memo Entry FB65
 Note: Credit memo via FB60 if triggering workflow
 Document Change FB02
 Document Display FB03
 Document Reverse FB08

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 Unit 3: Invoice and Credit Note Processing

Key Terms

 2 Way- Match Concept

 3 Way-Match Concept
 Logistics Invoice Verification

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 Unit 3: Invoice and Credit Note Processing

SAP R/3 Process

1. Purchase made
from vendor

Materials Management Module

Purchase Yes 2. Process PO related 3. Invoice verified
Order related vendor documents against PO and GR
or approval obtained
No
4. Process non-PO
related vendor documents Finance Module

5. Internal controls
used in verification

Represents a process within LIMS

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Represents a manual process outside of LIMS
 Unit 3: Invoice and Credit Note Processing

In Summary – PO Related Invoices

3 Way Match Concept

5. FI documents
1. Purchase 2. Goods 3. Invoice
4. Payment created to record
Order Receipt Receipt
Dr and Cr entries

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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 Unit 3: Invoice and Credit Note Processing

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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 Unit 3: Invoice and Credit Note Processing

SAP Accounts Payable Module Screen –

Non-PO Invoice and Credit Note Processing

Non-PO Invoice
Entry Transactions

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 Unit 3: Invoice and Credit Note Processing

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 10
 Unit 3: Invoice and Credit Note Processing

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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 Unit 3: Invoice and Credit Note Processing

SAP Accounts Payable Module Screen – PO

Invoice and Credit Note Processing

Invoice Verification
Transactions

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 Unit 3: Invoice and Credit Note Processing

PO Related Invoice – Displaying PO (ME23N)

PO History tab
allows you to see
any goods
receipts, invoices
posted

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 Unit 3: Invoice and Credit Note Processing

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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 Unit 3: Invoice and Credit Note Processing

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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 Unit 3: Invoice and Credit Note Processing

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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 Unit 3: Invoice and Credit Note Processing

PO Related Invoice – LIV – Simulation

Provides overview of the Acctg doc to be posted

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 Unit 3: Invoice and Credit Note Processing

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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 Unit 3: Invoice and Credit Note Processing

Other Accounts Payable Processing

Functions
 Reverse a Document
 Display Documents

 Change Documents

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 Unit 3: Invoice and Credit Note Processing

Transactions for Additional Functionality

Display Change
Transactions

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 Unit 3: Invoice and Credit Note Processing

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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 Unit 3: Invoice and Credit Note Processing

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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 Unit 3: Invoice and Credit Note Processing

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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 Unit 3: Invoice and Credit Note Processing

Display Documents Posted

 It is possible to display a list of transactions for a particular
user, date range, and/or doc type.
 Transaction FB03 (select list will bring up this screen):

Possible
Selection
Screen

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 Unit 3: Invoice and Credit Note Processing

Unit Recap

 Non-PO related invoice and credit memo processing

 PO related invoice and credit memo processing
 Additional Processing Functionality

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 Unit 3: Invoice and Credit Note Processing

Questions and Answers

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