Microsoft Word - 06 Unit.doc

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Variances and Blocking Reasons

Types of Variances

Quantity Variance

Price Variance

Blocking due to Quality Inspection

Blocking due to Amount

Tolerances

Blocking Invoices Manually

Stochastic Blocking

Contents:

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Variances Without

Reference to an Item

Basic Invoice Verification

Procedure

Taxes, Cash Discounts,

and Foreign Currency

Variances and

Blocking Reasons

Invoice Reduction

Introduction to

Invoice Verification

Invoices for POs with

Account Assignment

Delivery Costs

Subsequent

Debits/Credits

Invoices Without

Reference to POs

WWW

+ XXXX
+ YYY
= ZZZZ

Customs

+ XX
= ZZ

WWW

+ XXXX
= ZZZZ

WWW

+ XXXX
+ YYY
= ZZZZ

WWW

+ XXXX
+ YYY
= ZZZZ

Variances and Blocking Reasons: Course Overview

Diagram

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One of your vendors sometimes sends an invoice
for a higher amount than that agreed upon in the
purchase order. Sometimes, the vendor might
include the entire quantity on the invoice, although
you have not yet received all the goods. You need
to to test invoice blocking to ensure that you do
not pay the vendor until these differences have
been corrected.
You will also check which accounts the system
makes postings to when there are variances.

Variances and Blocking Reasons: Business Scenario

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Goods receipt

Document

no. 5100012345

created

Post

Purchase order

Invoice

Purchase
order

Invoices with Variances

Warning: variance!

Document

no. 5100012345

created

Post

Tolerances

10%

Warning: variance!

Blocked for

payment

The system checks every invoice item for variances.

You set tolerance limits for each variance type in Customizing for Invoice Verification.

If the variance is not within the tolerance limits, the system displays a message to this effect.

If an upper tolerance limit is exceeded in an invoice item, the system blocks payment of the entire
invoice when you post it.

If an invoice is blocked for payment, the field "Payment block" is filled in the vendor line item in the
FI document. (The field "Payment block" is only filled in the MM document if you enter a manual
payment block there.)

You must release a blocked invoice in a separate step before it can be paid.

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Goods receipt

Quantity

Invoice

50 pcs

GR 40

Price

Goods receipt

10 pcs = 230g

Date

Invoice

5.00 UNI/pc.

Invoice

= 200 g

10 pcs at

20.00 UNI/g

Purchase order

price quantity

Planned
delivery date

May 21

Invoice

10 pcs

= 250 g

April 11

10 pcs

= 250 g

Invoice

Variances

6.00 UNI/pc.

The R/3 System makes the following checks for each invoice item:

Quantity variance

It compares the difference between the delivered quantity and the quantity already invoiced with

the invoice quantity.

Price variance

It compares the purchase order price with the invoice price (invoice value / quantity).

Purchase order price quantity variance

Goods receipt before invoice receipt

The following ratios are compared: goods receipt quantity (in purchase order price units) / goods

receipt quantity (in purchase order units), invoice quantity (in purchase order price units) / invoice
quantity (in purchase order units).

Invoice receipt before goods receipt

The following ratios are compared: purchase order quantity (in purchase order price units) /

purchase order quantity (in purchase order units), invoice quantity (in purchase order price units) /
invoice quantity (in purchase order units).

Date variance

The R/3 System compares the planned delivery date to the invoice entry date.

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Goods receipt

Invoice

Goods receipt

Invoice

Goods receipt

at a later time

Stock account
GR/IR account
Vendor

500 +
500 -

800 +
800 -

300 +
300 -

Goods receipt

50 pcs

100 pcs at
10.00 UNI/pc.

80 pcs at
10.00 UNI/pc.
= 800 UNI

Quantity Variance

The invoice quantity is larger than the goods receipt quantity. When you post the invoice, a balance
is created on the GR/IR clearing account.

You expect another goods receipt. The GR/IR clearing account is cleared when you post this goods
receipt.

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Goods receipt

Invoice

Stock account
GR/IR account
Vendor account
Price differences

130 +
130 -

130 +
124 -

100 pcs

100 pcs at
1.30 UNI/pc.

Invoice

100 pcs at
1.24 UNI/pc.
= 124 UNI

Price control

6 -

Price Variance

When price variances occur, the account movements differ depending on how the material is
valuated.

There are two types of price control:

S – standard price

V – moving average price (MAP)

If the invoice is received after the goods receipt, the following occurs, depending on the price control
used:

In the case of a material subject to standard price control, the R/3 System posts the price variance

to a price difference account.

In the case of a material subject to moving average price control, the R/3 System posts the price

variance to the stock account if there is sufficient stock coverage. This changes the moving
average price.

If the invoice is received before the goods receipt, the R/3 System posts the price variance to the
GR/IR clearing account. It posts the price variance to the price difference account or stock account
only when the goods receipt is posted.

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Material with standard price of 1.20 UNI/pc.
Stock: 100 pcs

Purchase order: 100

pcs at 1.30 UNI/pc.

Goods receipt for this purchase order: 100 pcs
Invoice: 100 pcs at 1.24 UNI/pc. = 124.00 UNI

Stock account
GR/IR account
Vendor account
Price diff. expense
Price diff. revenue

120 +

130 -

10 +

130 +

124 -

6 -

Goods
receipt

Invoice

Material master record

Stock

Value

Standard

price

100

200

120

240

1.20

Price Variance: Material with Standard Price

The R/3 System posts the price variance to a price difference account.

The material price remains unchanged both at goods receipt and invoice receipt.

The moving average price, which is included in the material master record for statistical purposes,
changes by the amount of the variance.

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Material with moving average price of 1.20 UNI/pc.
Stock: 100 pcs

Purchase order: 100 pcs at 1.30 UNI/pc.
Goods receipt for this purchase order: 100 pcs
Invoice: 100 pcs at 1.24 UNI/pc. = 124.00 UNI

Stock account
GR/IR account
Vendor account

130 +

130 -

6 -

130 +

124 -

Goods
receipt

Invoice

Material master record

Stock

Value

MAP

100

200

120

250

244

1.20

1.25

1.22

Price Variance: Material with Moving Average Price

The R/3 System posts the price variance to the stock account.

The material price changes:

If there is insufficient stock coverage for the invoice quantity, the R/3 System posts the price

variance to a price difference account.

If there is stock coverage for only part of the invoice quantity, the R/3 System distributes the price

variance proportionally between the stock account and the price difference account.

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Quantity and Price Variance

Goods receipt

Invoice

Stock account
GR/IR account
Vendor account
Price differences

170 +
170 -

110 +
110 -

80 pcs

100 pcs at
2.00 UNI/pc.

Invoice

50 pcs at
2.20 UNI/pc.
= 110 UNI

Invoice

6 +
104 +
110 -

Invoice

50 pcs at
2.20 UNI/pc.
= 110 UNI

If the invoice is posted before the goods receipt, the R/3 System posts the invoice value to the GR/IR
clearing account. This is cleared at goods receipt – the system makes the offsetting entry to the stock
account in the case of a material subject to moving average price control.

If the invoice is posted before the goods receipt and the goods receipt quantity is greater than the
invoice quantity, the quantity that has already been invoiced is valuated at the invoice price – the
quantity that has not been invoiced is valuated at the purchase order price.

If the quantity in an invoice is greater than the goods receipt quantity, the R/3 System clears the
GR/IR clearing account for the part of the invoice quantity that has already been delivered and posts
a price difference to either the stock account or a price differences account, depending on the price
control used. It posts the invoice value for the part of the invoice quantity that has not been delivered
to the GR/IR clearing account.

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Goods receipt
Material A

Invoice

Material A

Inspection
lot

Rejected

Invoice

Material A

Invoice

Material A

Blocked due to

quality inspection

Inspection
lot

Usage

decision

Subject to GR check
with invoice block

Inspection
lot

Accepted

Blocked due to

quality inspection

Usage

decision

Inspection
lot

Blocking due to Quality Inspection

In the material master record of a material, you define:

If a goods receipt for a material is subject to inspection

In this case, an inspection lot is created for every goods receipt for this material.

If an invoice should be blocked due to quality inspection

In this case, an inspection lot without a usage decision or a rejected inspection lot leads to the R/3
System blocking the invoice.

The R/3 System sets blocking reason I (quality) for an item in the following cases:

Goods-receipt-based invoice verification – The invoice is blocked if no usage decision has been

made about the inspection lot for the goods receipt concerned or if the inspection lot has been
rejected.

No goods-receipt-based invoice verification – The invoice is blocked if no usage decision has been

made for any inspection lot for the purchase order item or if the inspection lot has been rejected.

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Customizing

Amount tolerance limit
Upper limit

1500

blocked

4300

Invoice

Material A 1000
Material B 1700
Material C 1600

Blocking due to Amount

You can activate the amount check in Customizing for Invoice Verification. For each company code,
you can set a tolerance limit for the amount check for each individual item.

In Customizing for Invoice Verification, you can also define which purchase orders you want the
checks to be performed for (according to the item category and the goods receipt indicator).

If an invoice item exceeds the set tolerance, the item is given blocking reason O (other). The entire
invoice is blocked for payment.

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Tolerances

1000

UNI

above value

above

10.00

20.00 %

5.00 %

Tolerances for:

Company code

Amounts in

Absolute lower limit

No check

Check limits

Absolute upper limit

No check

Check limits

Percentage lower limit

No check

Check limits

Percentage upper limit

No check

Check limits

You define tolerances in Customizing for:

Quantity variances

Price variances

Purchase order price quantity variances

Schedule variances

The R/3 System checks the following value in the case of quantity variance:

Purchase order price x quantity variance

The greater the purchase order price, the lower the tolerated quantity variance.

The R/3 System checks the following value in the case of schedule variance:

Invoice value x days variance

The greater the invoice value, the lower the tolerated schedule variance.

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Material Quantity Amount Ma Purchase order Item
R244-11 100 4000 4151599003 20
R262-10 40 2000 4151599003 50

Manual Blocking

Invoice

for PO 4151599003
100 pcs R244-11 4000.00
40 pcs R266-10 2000.00

Item list

Payment method _______
Payment block _____

Basic data

Details

At item level

At header level

Payment

You can block each individual invoice item manually, regardless of whether it is blocked for other
reasons or not.

You set the manual block on the item list.

You can also set a payment block directly on the header screen area, on the tab page "Payment",
without reference to a particular item. In this case, the system posts the field "Payment block" in the
MM document and the FI document with the payment block entered.

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Block

Invoice value

50%

100%

Threshold value

1000

2000

3000

Invoice

Material A 500
Material B 1000

1500

Stochastic Blocking

Invoices that do not contain a blocking reason can be blocked stochastically (that is, at random).

You set a threshold value and a percentage in Customizing.

If the invoice value is greater than or equal to the threshold value, the probability of a block is

equal to the percentage.

If the invoice value is smaller than the threshold value, the R/3 System calculates the probability

on a proportional basis.

If an invoice is blocked stochastically, the R/3 System sets the payment block in the vendor line item
in the FI document. The individual items do not contain a blocking indicator.

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Variances and Blocking Reasons:

Exercises

Unit: Variances and Blocking Reasons

At the end of this exercise, you will be able to:
• Enter invoices with variances
• Compare the postings for stock materials subject to standard

price control and moving average price control

One vendor sometimes sends an invoice for a higher amount than
agreed upon in the purchase order. Although you have not yet
received all the goods relating to one item, the vendor might
include the entire quantity on the invoice. You need to test
invoice blocking to be sure that the vendor is not paid until the
differences have been corrected. You display the account
movements to see which accounts the R/3 System posts to when
there are variances.

1-1

You receive the following invoice from your supplier. Enter the invoice information
and note the default values that the R/3 System suggests.

INVOICE

Sapsota Company Limited

Vendor T-L15A##

Invoice date: (today’s date)
Invoice 5003##
This invoice refers to your purchase order number 41515051##

T-M15A##

Slugs for cast iron
spiral casings

50 pcs

500 UNI

T-M15B##

Flat gaskets

50 pcs

1100 UNI

T-M15C##

Packing gaskets

50 pcs

1000 UNI

2600

UNI

Tax:

10% tax

260 UNI

Total due:

2860 UNI

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1-1-1 Enter the invoice using Logistics Invoice Verification.

1-1-2 On

the

Item list screen, change the items to match the invoice. As you

change the suggested values, fill in the table.

Purchase order
item

Quantity or price
variance?

Message

1-1-3 Why is there no warning message during the quantity check for the third

item?
______________________________________________________

1-1-4 How do you know that the invoice is blocked for payment?

______________________________________________________

1-1-5 Simulate the postings.

OPTIONAL: Fill in the table.

Item

Account

Amount

001

002

003

004

005

006

Post the document.
Invoice number: ________________________________________

1-1-6 Display the document. How can you tell if it is blocked? How can you find

out which lines are affected?
______________________________________________________
______________________________________________________

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1-2

A second invoice arrives for the purchase order. Which tolerance limits are
exceeded?

INVOICE

Sapsota Company Limited

Vendor T-L15A##

Invoice date: (today’s date)
Invoice 5004##
This invoice refers to your purchase order number 41515051##

T-M15A##

Slugs for cast iron
spiral casings

50 pcs

400 UNI

T-M15B##

Flat gaskets

50 pcs

1100 UNI

T-M15C##

Packing gaskets

100 pcs

2500 UNI

4000

UNI

Taxable:

10% tax

400 UNI

Total due:

4400 UNI

1-2-1 Enter the invoice using Logistics Invoice Verification. Change the items to

match the invoice. As you change the suggested values, fill in the table.

Purchase order
item

Quantity or price
variance?

Message

010

020

030

1-2-2 What color is the traffic light icon? What does that mean?

______________________________________________________
______________________________________________________

1-2-3 Simulate the document. Which postings are made? Can you explain the

postings for the third purchase order item, invoice lines 005 and 006?
______________________________________________________
______________________________________________________
______________________________________________________

OPTIONAL: Fill in the table.

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Item

Account

Amount

001

002

003

004

005

006

007

Post the document. Is it blocked for payment? ____________
Invoice number: ______________________________________

1-3

You receive an invoice in which the items match those that the R/3 System
proposes. However, you realize that the invoice contains some materials for which
there have recently been a lot of complaints. How can you ensure that the invoice is
nevertheless blocked for payment?
____________________________________________________________
____________________________________________________________

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Variances and Blocking Reasons:

Solutions

Unit: Variances and Blocking Reasons

1-1

Logistics

→ Materials Management → Logistics Invoice Verification →

Document Entry

→ Enter Invoice

1-1-1 You enter the following data on the Basic data tab page:

Field name or data type

Values

Document date

<today’s date>

Reference 5003##

Amount 2860

Tax amount

260

Enter the purchase order number as the allocation:

Field name or data type

Values

Purchase order/scheduling agreement

41515051##

1-1-2 On the item list, change the suggested quantities and values to match the

invoice. When you confirm your entries by choosing Enter, the system
checks the quantity and price of each item. The system collects the
messages in the error log. Choose Messages. The following messages
appear:

Purchase order
item

Quantity or price
variance?

Message

Quantity

Delivered quantity is zero

20 Price Price

too

low

30 Quantity

----

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1-1-3 Customizing is configured in such a way that the system does not check in

the case of a quantity shortfall.

1-1-4 The traffic light icon is yellow, which means that the system will block the

invoice for payment.

1-1-5 If you choose Simulate, a window appears in which you see the account

movements that will take place when the invoice is posted.

Item

Account

Amount

001

Vendor account

2860 -

002

GR/IR clearing account

500

003

GR/IR clearing account

2500

004

Stock account

1400 -

005

GR/IR clearing account

1000

006 Tax

account

260

You choose Post to post the document. A message appears displaying the
document number.

1-1-6 The invoice block is located in the vendor line item of the accounting

document, the field Payment block is filled with R. The invoice document in
Materials Management shows which items have caused the block.
You can display the invoice document as follows:

Logistics

→ Materials Management → Logistics Invoice Verification →

Document Entry

→ Display Invoice

choosing

Goto

→ Follow-on documents

and then double-clicking the

accounting document, the accounting document appears. When you double-
click the first line, the item data appears. You can see there that the field
Payment block is filled.

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1-2

Logistics

→ Materials Management → Logistics Invoice Verification →

Document Entry

→ Enter Invoice

1-2-1 You enter the following data on the Basic data tab page:

Field name or data type

Values

Document date

<today’s date>

Reference 5004##

Amount 4400

Tax amount

400

Enter the purchase order number as the allocation:

Field name or data type

Values

Purchase order/scheduling agreement

41515051##

1-2-2 On the item list, change the suggested quantities and values to match the

Order item

Quantity or price
variance?

Message

010

Quantity and price

Delivered quantity
is zero
Price too low

020 Price

Price

too

low

030

Quantity and price

Invoice quantity
greater than GR
quantity
Price too high

1-2-3 The traffic light icon is yellow, which means that the system will block the

invoice for payment.

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1-2-4 When you choose Simulate, a dialog box appears in which you see the

account movements that will take place when the invoice is posted.

Item

Account

Amount

001

Vendor account

4400 -

002

GR/IR clearing account

400

003

GR/IR clearing account

2500

004

Stock account

1400 -

005

GR/IR clearing account

2150

006 Stock

account

350

007 Tax

account

400

The postings in lines 005 and 006 are for the invoice item for the packing
gaskets. The system suggested 70 pieces for this item and you changed it to
100 pieces. The suggested value for the 70 pieces was 1400 UNI. (That is
the exact value that is to be cleared for the 70 pieces on the GR/IR clearing
account.) You must post 750 UNI to the GR/IR clearing account for the 30
pieces that have not yet been delivered. Therefore, the system posts 1400
UNI + 750 UNI = 2150 UNI to the GR/IR clearing account.
You must debit the stock for the 70 pieces that have been delivered, since
the invoice contains a price increase (25 UNI/piece instead of 20 UNI/
piece). Therefore, the system posts 70 pieces x 5 UNI/piece = 350 UNI to
the stock account.
You choose Post to post the document. A message appears displaying the
document number.
The system blocks the invoice for payment.

1-3

There are two ways for you to block an invoice directly:

You can fill in the field Payment block directly on the tab page Payment. Then the
system blocks the invoice without reference to a particular item.
On the item list, you can select the column Ma (manual block) in one or more
items. The items contain a blocking indicator and the system blocks the invoice for
payment when you post it. (You may have to switch to the display variant All
information to be able to select the column. If you want to regularly use this option
for blocking, we recommend that you define a layout in which the column Ma is
visible without you needing to scroll across.)

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Invoice Reduction: Course Overview Diagram

Variances Without

Reference to an Item

Basic Invoice Verification

Procedure

Taxes, Cash Discounts,

and Foreign Currency

Variances and

Blocking Reasons

Invoice Reduction

Introduction to

Invoice Verification

Invoices for POs with

Account Assignment

Delivery Costs

Subsequent

Debits/Credits

Invoices Without

Reference to POs

WWW

+ XXXX
+ YYY
= ZZZZ

Customs

+ XX
= ZZ

WWW

+ XXXX
= ZZZZ

WWW

+ XXXX
+ YYY
= ZZZZ

WWW

+ XXXX
+ YYY
= ZZZZ

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Your company recently implemented SAP R/3 and
must define the standard procedure for invoice
verification.

Occasionally, one of your company’s vendors
makes an obvious error. In such cases, you want to
use the automatic invoice reduction function. You
want to check the accounting documents that are
created when this happens.

Invoice Reduction: Business Scenario

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Delivery

Item list

Suggested quantity/value

Invoice quantity/value

X 4151599211

70 pcs

700 UNI

100 pcs 1000 UNI

70 pcs

Accounting document

Credit memo for 300 UNI

Accounting document

Invoice for 1000 UNI

Accounting document

Materials Management

70 pcs 700 UNI

Purchase
order
4151599211
100 pcs
10 UNI/pc.

Invoice

100 pcs
1000 UNI

Reducing Invoices

There is a special display variant of the item list for invoice reduction. You enter the invoice
quantities or values that differ to the quantities or values suggested by the R/3 System separately on
this list. (You can enter data in these fields only when you have flagged the item as Vendor error:
reduce invoice).

When you post a reduced invoice, the R/3 System creates two accounting documents:

The first document contains the invoice postings for the actual quantities and values. The second
document contains a credit memo for the difference between the actual invoiced quantities and
values and the suggested quantities and values.

Therefore, with invoice reduction, you do not actually reduce an invoice. Instead, you also post a
credit memo for the amount of the reduction. The amount payable to the vendor is the value of the
invoice reduced by the credit memo amount.

The invoice document is listed in the purchase order history with the suggested quantity as the
invoice quantity.

When you post an invoice reduction, the R/3 System creates a message record. You can use this to
generate a letter of complaint (notification of credit memo posting) to the vendor.

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Purchase order: 100 pcs at 10.00 UNI/pc.
Goods receipt for this purchase order: 70 pcs
Invoice: 100 pcs at 10.00 UNI/pc. = 1000.00 UNI

10% Tax

= 100.00 UNI
= 1100.00 UNI

Stock account
GR/IR account
Vendor account
Input tax
Clearing account for
invoice reduction

330 +
30 -
300 -

700 +
1100 -
100 +
300 +

700 +
700 -

Credit

memo

Goods receipt

Invoice

Account Movements with Invoice Reduction

When you reduce invoices, the system creates an invoice and a credit memo simultaneously.

The item amount entered in the invoice that you create is distributed in the following way: The
system only posts the amount shown in the suggested data to the GR/IR clearing account. It posts the
remainder to a clearing account for vendor invoice reduction.

The creation of the credit memo clears the clearing account for vendor invoice reductions. The
offsetting entry is made to the vendor account.

The system makes the tax posting in the invoice based on the item amount entered. The credit memo
corrects the tax posting.

Together, the invoice and the credit memo create the liability, resulting from the suggested data.

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Item list

Suggested quantity/value

Invoice quantity/value

X 4151599212

70 pcs

700 UNI

100 pcs 1200 UNI

100 pcs

1000 UNI

Purchase
order
4151599212
100 pcs
10 UNI/pc.

Delivery

70 pcs

Accounting document

Credit memo for 200 UNI

Accounting document

Invoice for 1200 UNI

Invoice document

Materials Management

100 pcs 1000 UNI

Partial Reduction: Price Variance

Invoice

100 pcs
1200 UNI

You can accept variances partially. In this case, you reduce only the part of the invoice that you have
not accepted.

The above invoice contains variances in the quantity and the price. If you accept the quantity
variance, you must overwrite the suggested quantity with the actual quantity in the invoice.
Accordingly, you must also overwrite the suggested amount with the correct amount for the quantity
entered. You then reduce the invoice by the difference between the actual invoice value and the
“suggested value” entered.

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Purchase order: 100 pcs at 10.00 UNI/pc.
Goods receipt for this purchase order: 70 pcs
Invoice: 100 pcs at 12.00 UNI/pc. = 1200.00 UNI

10% Tax

= 120.00 UNI
= 1320.00 UNI

Stock account
GR/IR account
Vendor account
Input tax
Clearing account for
invoice reduction

220 +
20 -
200 -

1000 +
1320 -
120 +
200 +

700 +
700 -

Goods receipt

Invoice

Credit

memo

Account Movements with Invoice Reduction

When you reduce invoices, the system creates an invoice and a credit memo simultaneously.

Since you have accepted the quantity variance, the system posts 1000 UNI to the GR/IR clearing
account (the system expects another goods receipt for 30 pieces). The 200 UNI difference between
the invoice amount and the amount to be posted to the GR/IR clearing account is posted to a clearing
account for vendor invoice reduction.

The creation of the credit memo clears the clearing account for vendor invoice reductions. The
offsetting entry is made to the vendor account.

The tax posting in the invoice is based on the item amount entered. The credit memo corrects the tax
posting. In Customizing you can define whether the system should correct the tax in the original
document.

Together, the invoice and the credit memo create the liability, resulting from the changes made to the
data suggested by the system.

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Purchase
order
4151599213
100 pcs
10 UNI/pc.

Delivery

Item list

Suggested quantity/value

Invoice quantity/value

X 4151599213

70 pcs

700 UNI

100 pcs 1200 UNI

840 UNI

70 pcs

Accounting document

Credit memo for 360 UNI

Accounting document

Invoice for 1200 UNI

Partial Reduction: Quantity Variance

Invoice

100 pcs
1200 UNI

Invoice document

Materials Management

70 pcs 840 UNI

You can accept variances partially. In this case, you reduce only the part of the invoice that you have
not accepted.

The above invoice contains variances in the quantity and the price. If you accept the price variance,
you must overwrite the suggested value with the product of the suggested quantity multiplied by the
actual invoice price. You then reduce the invoice by the difference between the actual invoice value
and the “suggested value” entered.

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Purchase order: 100 pcs at 10.00 UNI/pc.
Goods receipt for this purchase order: 70 pcs
Invoice: 100 pcs at 12.00 UNI/pc.

= 1200.00 UNI

10% tax

= 120.00 UNI
= 1320.00 UNI

Stock account
GR/IR account
Vendor account
Input tax
Clearing account for
invoice reduction

396 +
36 -
360 -

140 +
700 +
1320 -
120 +
360 +

700 +
700 -

Goods receipt

Invoice

Credit memo

Account Movements with Invoice Reduction

When you reduce invoices, the R/3 System creates an invoice and a credit memo simultaneously.

Since you have accepted the price variance, the GR/IR clearing account in the invoice is cleared and
the price difference is debited to the stock account. The 360 UNI difference between these two
amounts and the invoice amount is posted to a clearing account for vendor invoice reductions.

The creation of the credit memo clears the clearing account for vendor invoice reductions. The
offsetting entry is made to the vendor account.

The tax posting in the invoice is based on the item amount entered. The credit memo corrects the tax
posting.

Together, the invoice and the credit memo create the liability, resulting from the changes made to the
data suggested by the R/3 System.

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Invoice Reduction:

Exercises

Unit: Invoice Reduction

At the end of this exercise, you will be able to:
• “reduce” the invoice automatically in the case of invoice

variances, by posting an invoice and a credit memo at the same
time

For certain vendors, your company pays only the purchase order
value when there are minor variances. Occasionally, when it’s an
obvious vendor error, you need to reduce an item manually. You
want to check the accounting documents that are created.

1-1

The vendor sent you the following invoice. Post the invoice in Logistics Invoice
Verification. You noticed that there was an obvious data error, so you use invoice
reduction to correct it.

INVOICE

Sapsota Company Limited

Vendor T-L15A##

Invoice date:

(today’s date)

Invoice 5004##
This invoice refers to your purchase order number 41515061##

T-M15A##

Slugs for cast iron
spiral casings

10 pcs

100 UNI

T-M15B##

Flat gaskets

20 pcs

1060 UNI

T-M15C##

Packing gaskets

80 pcs

1640 UNI

T-M15D##

Lantern rings

10 pcs

40 UNI

Tax:

10% tax

284 UNI

Total due:

3124 UNI

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1-1-1 Enter the basic data and allocate the invoice.

1-1-2 The invoice value is larger than expected in two items. Enter the invoice so

that the system automatically reduces it when you post it. Change the item
list display variant to do this.

1-1-3 Simulate the document.

OPTIONAL: Fill in the table.

Item

Account

Amount

001

002

003

004

005

006

007

008

009

010

011

Post the document.
Invoice number: _________________________________________

Display the invoice, purchase order history, and accounting documents.

1-1-4 How does invoice reduction affect the purchase order history?

______________________________________________________

1-1-5 How many accounting documents are there?

______________________________________________________
Why?
______________________________________________________
______________________________________________________

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Invoice Reduction:

Solutions

Unit: Invoice Reduction

1-1

Logistics

→ Materials Management → Logistics Invoice Verification →

Document Entry

→ Enter Invoice

1-1-1 You enter the following data on the Basic data tab page:

Field name or data type

Values

Document date

<today’s date>

Reference 5004##

Amount 3124

Tax amount

284

Enter the purchase order number as the allocation:

Field name or data type

Values

Purchase order/scheduling
agreement

41515061##

1-1-2 On the item list, the system proposes lower values for the second and third

items than specified in the invoice. You choose the Invoice reduction
display variant.
You change the correction indicator for the second item to correct it.

Field name or data type

Values

Correction ID

Vendor error: reduce invoice

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The system fills the columns Invoice quantity and Invoice amount with the
same values as the fields Quantity and Amount. Then you change the
invoice amount.

Field name or data type

Values

FC invoice amount

1060

You change the third item accordingly.
In the fourth item, the invoice amount is smaller than the proposed value.
Therefore you do not change the correction indicator here and enter the
variance directly in the Amount column.

Field name or data type

Values

Amount 40

You choose Enter to confirm your changes.

1-1-3 When you choose Simulate, a dialog box appears in which you see the

account movements that will take place when the invoice is posted.

Item

Account

Amount

001

Vendor account

3124 -

002

GR/IR clearing account

100

003

GR/IR clearing account

1000

004

GR/IR clearing account

1600

005

GR/IR clearing account

100

006

Stock account

10 -

007 Tax

account

284

008 Clearing

invoice

reduction

100

009 Vendor

account

110

010

Clearing invoice reduction

100 -

011

Tax account

10 -

You choose Post to post the document. A message appears displaying the
document number.

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1-1-4 You can display the invoice document as follows:

Logistics

→ Materials Management → Logistics

Invoice Verification

→ Document Entry → Display Invoice

If you position the cursor on a purchase order number and choose

Environment

→ Display PO history

, the purchase order history appears

for the item. In purchase order items 20 and 30, in which you reduced the
invoice, the system lists only the actual amount accepted. You cannot see
that the vendor asked for a higher amount. The price variance entered in
item 40 is visible.

1-1-5 When you choose

Environment

→ Follow-on documents

from the

document display screen (see 1-1-4), a dialog box appears in which the
follow-on documents are listed. The system displays two accounting
documents: an invoice document and a credit memo document. When you
double-click one of the accounting documents, that document appears.

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Post invoices when there is a difference between
the item total that the R/3 System expects and the
actual invoice total within acceptable tolerance
limits

Reduce invoices in Logistics Invoice Verification
without reference to an item

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

Variances Without Reference to an Item: Objectives

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Variance Without Reference to an Item: Course

Overview Diagram

Variances Without

Reference to an Item

Basic Invoice Verification

Procedure

Taxes, Cash Discounts,

and Foreign Currency

Variances and

Blocking Reasons

Invoice Reduction

Introduction to

Invoice Verification

Invoices for POs with

Account Assignment

Delivery Costs

Subsequent

Debits/Credits

Invoices Without

Reference to POs

WWW

+ XXXX
+ YYY
= ZZZZ

Customs

+ XX
= ZZ

WWW

+ XXXX
= ZZZZ

WWW

+ XXXX
+ YYY
= ZZZZ

WWW

+ XXXX
+ YYY
= ZZZZ

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Invoice

for purchase order 45123
Item 1 10 pcs 1 000 UNI
Item 2 20 pcs 800 UNI
…

…

Item 100 15 pcs 900 UNI

Total 100 493 UNI

Item list

Default quantity Value

X 45123 0001

10 pcs

1000 UNI

X 45123 0002

20 pcs

800 UNI

X 45123 0003 …

…

X 45123 0100

15 pcs

900 UNI

Total

100 483 UNI

Stock accounts
GR/IR accounts
Vendor account
Clearing account for
Invoice reduction

100493 -
10 +

Invoice

100483 +

10 +
10 -

Account movements

Credit

memo

Total-Based Invoice Reduction

With total-based invoice reduction, the R/3 System creates two accounting documents when you
post the invoice:

The first document contains the invoice postings with the suggested quantities and values, changed if
necessary, and an additional posting to a clearing account. The second document contains a credit
memo, which creates the offsetting entry to the clearing account.

Therefore, with invoice reduction, you do not actually reduce an invoice. Instead, by posting a credit
memo for the amount of the reduction, the amount payable to the vendor is the value of the invoice
reduced by the credit memo amount.

When you post an invoice reduction, the R/3 System creates a message record. You can use this to
generate a letter of complaint (notification of credit memo posting) to the vendor. In contrast to
manual invoice reduction, you cannot inform the vendor of the “cause”, because the R/3 System does
not actually determine this.

In Customizing, you can allocate each vendor to a tolerance group for Logistics Invoice Verification.
For each tolerance group, you set a limit up to which invoices can be automatically reduced without
reference to a particular item.

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Invoice

for purchase order 45123
Item 1 10 pcs 1 000 UNI
Item 2 20 pcs 800 UNI
…

…

Item 100 15 pcs 900 UNI

Total 100 485 UNI

Item list

Suggested quantity Value

X 45123 0001

10 pcs

1 000 UNI

X 45123 0002

20 pcs

800 UNI

X 45123 0003 …

…

X 45123 0100

15 pcs

900 UNI

Total

100 483 UNI

Stock accounts
GR/IR accounts
Vendor account
Small differences

100485 -
2 +

Invoice

100483 +

Account movements

Total-Based Acceptance

When the R/3 System accepts a difference between the item total it expects and the item total in the
actual invoice, it posts the difference to a non-operating expense or revenue account.

In Customizing, you set the maximum permitted difference for which the R/3 System can make a
difference posting.

In conventional Invoice Verification, you set a tolerance range for the small price difference for

each company code.

In Logistics Invoice Verification, you assign each vendor to a tolerance group. You set a tolerance

range for the difference for each tolerance group. (If you do not allocate a vendor to a tolerance
group, the R/3 System uses the same tolerance range as in conventional Invoice Verification.)

In conventional Invoice Verification, the R/3 System cannot create a difference if you have it
calculate the tax amounts using the function Calculate tax.

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Vendor-Specific Tolerances

Expected invoice value

Balance too
large:
Invoice cannot
be posted

Balance too large:
Invoice cannot
be posted

Small
differences

Negative differences

Positive differences

Acceptance

Invoice
reduction

The system first checks whether the variance falls within the small difference.

If there is a positive difference that is greater than the small difference, then the system checks
whether it falls within the defined invoice reduction limit. If the invoice reduction limits are set to
“do not check“, the system compares the variance with the acceptance limits.

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Invoice

for purchase order 45123
Item 1 10 pcs 1 000 UNI
Item 2 20 pcs 800 UNI
…

…

Item 100 15 pcs 900 UNI

Total 100, 495 UNI

Item list

Default quantity Value

X 45123 0001

10 pcs

1000 UNI

X 45123 0002

20 pcs

800 UNI

X 45123 0003 …

…

X 45123 0100

15 pcs

900 UNI

Total 100,483 UNI

Stock accounts
GR/IR accounts
Vendor account
Small differences

100495 -
12 +

Invoice

100483 +

Account movements

Manual Acceptance

Document

no. 5100012345

created

Accept and post

Edit

If a difference is greater than the tolerances you have defined, then the system shows the balance.
The traffic light is red.

You can use Edit

→

Accept and post to post the document. The system posts the difference to a

small differences account.

The function Accept and post is linked to the authorization object M_RECH_AKZ.

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Post invoices when there is a difference between
the item total that the system expects and the
actual invoice total within acceptable tolerance
limits

Reduce invoices in Logistics Invoice Verification
without reference to an item

You are now able to:

Variance Without Reference to an Item: Summary

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Variances Without Reference to an Item:

Exercises

Unit: Variances Without Reference to an Item

At the end of this exercise, you will be able to:
• Post an invoice despite differences, because the difference lies

within the tolerance limits set

For certain vendors, your company pays only the purchase order
value when there are variances that cannot be assigned. You want
to check the accounting documents that are created.

1-1

Your vendor, Sapsota Company, accepts payment of invoices at the purchase order
price if the difference is within a value of 50 UNI.

1-1-1 Change the vendor master record. Assign tolerance group 515 to the vendor.

1-1-2 The item amounts are missing in the following invoice. Enter this invoice in

Logistics Invoice Verification.

INVOICE

Sapsota Company Limited

Vendor T-L15A##

Invoice date: (today’s date)
Invoice 6002##
This invoice refers to your purchase order number 41515071##
T-M15A##

Slugs for cast iron spiral casings

10 pcs

T-M15B##

Flat gaskets

10 pcs

T-M15C##

Packing gaskets

10 pcs

T-M15D## Lantern

rings

pcs

Total

880

UNI

Tax

10% tax

88 UNI

Total due:

968 UNI

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1-1-3 Leave the proposed values on the item list unchanged. How large is the

difference? Can you save the invoice despite the difference?
______________________________________________________

1-1-4 Simulate the document.

OPTIONAL: Fill in the table.

Item

Account

Amount

001

002

003

004

005

006

007

008

Post the invoice.
Invoice number: _________________________________________
Display the invoice, purchase order history, and accounting documents.

1-1-5 How does invoice reduction affect the purchase order history?

______________________________________________________

1-1-6 How many accounting documents are there?

______________________________________________________

Why?

______________________________________________________
______________________________________________________

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Variances Without Reference to an Item:

Solutions

Unit: Variances Without Reference to an Item

1-1-1

Logistics

→ Materials Management → Purchasing → Master Data

→ Vendor → Central → Change

Field name or data type

Values

Vendor T-L15A##

Company code

1000

the

Company code data area, you select Payment transactions. The

Payment Transactions screen appears. You enter the following data in the
Invoice verification area:

Field name or data type

Values

Tolerance group

515

You save your entry.

1-1-2

Logistics

→ Materials Management → Logistics Invoice Verification →

Document Entry

→ Enter Invoice

You enter the following data on the Basic data tab page:

Field name or data type

Values

Document date

<today’s date>

Reference 6002##

Amount 968

Tax amount

Enter the purchase order number as the allocation:

Field name or data type

Values

Purchase order/scheduling
agreement

41515071##

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1-1-3 After you have matched up the invoice, the R/3 System displays a balance

of 30.00 UNI, however the traffic light icon is green, which means that you
can post the invoice.

1-1-4 When you choose Simulate, a dialog box appears in which you see the

account movements that will take place when the invoice is posted.

Item

Account

Amount

001

Vendor account

968 -

002

GR/IR clearing account

100

003

GR/IR clearing account

500

004

GR/IR clearing account

200

005

GR/IR clearing account

006 Tax

account

007 Clearing

invoice

reduction

008 Vendor

account

009

Clearing invoice reduction

30 -

010

Tax account

3 -

You choose Post to post the document. A message appears displaying the
document number.

1-1-5 You can display the invoice document as follows:

Logistics

→ Materials Management → Logistics

Invoice Verification

→ Document Entry → Display Invoice

If you position the cursor on a purchase order number and choose

Goto

→

Display PO history

, the purchase order history appears for the item. You

cannot see the invoice reduction in the purchase order history.

1-1-6 When you choose

Environment

→ Follow-on documents

from the

document display screen (see 1-1-5), a dialog box appears in which the
follow-on documents are listed. The R/3 System displays two accounting
documents: an invoice document and a credit memo document. When you
double-click one of the accounting documents, that document appears.

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Invoices for POs with Account Assignment

Enter Invoices for POs with Account Assignment

Posting Logic for Invoices for POs with Account
Assignment

Invoices Relating to a Blanket Purchase Order

Contents:

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Enter invoices for purchase order with account
assignment and change the planned account
assignments

Enter invoices relating to a blanket purchase
order

Trace the resulting account movements

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

Invoices for POs with Account Assignment: Unit

Objectives

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Invoices for Purchase Orders with Account

Assignment: Course Overview Diagram

Variances Without

Reference to an Item

Basic Invoice Verification

Procedure

Taxes, Cash Discounts,

and Foreign Currency

Variances and

Blocking Reasons

Invoice Reduction

Introduction to

Invoice Verification

Invoices for POs with

Account Assignment

Delivery Costs

Subsequent

Debits/Credits

Invoices Without

Reference to POs

WWW

+ XXXX
+ YYY
= ZZZZ

Customs

+ XX
= ZZ

WWW

+ XXXX
= ZZZZ

WWW

+ XXXX
+ YYY
= ZZZZ

WWW

+ XXXX
+ YYY
= ZZZZ

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Purchase Orders with Account Assignment

Cost center 1

Cost center 2

Item
2010

Material
Folders

Quantity
300

1
2

Folders
Folders

100
200

Account assignments

cost ctr 1
cost ctr 2

PO with account
assignment

We need

200 folders!

We need

100 folders!

The buyer can assign a purchase order to one or more cost objects.

In the case of a purchase order item that is assigned to an account, a "current account assignment" is
set up for each account assignment.

The system cannot derive the account assignment from the incoming invoice. When you enter the
invoice, the system proposes the individual "current account assignment".

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Customizing

Goods receipt

GR non-valuated

Invoice receipt X

Account assignment X

changeable at IR

Asset

Cost center

Project

Order

Sales order

Account assignment

category

Account

assignment to

Purchase order
item

Account assignment

category

Types of Account Assignment

You can create an account assignment for a purchase order to various objects.

You use the account assignment category to define the type of account assignment.

The account assignment category controls:

If you can post a goods receipt

If you can post an invoice receipt

If you cannot post a goods receipt, the R/3 System suggests the difference between the purchase
order quantity and the invoiced quantity in Invoice Verification.

In Invoice Verification, the R/3 System suggests the account assignment defined in the purchase
order.
You can change the account assignment, provided that the following two conditions are fulfilled:

Changing the account assignment is defined for the respective account assignment category in

Customizing

No valuated goods receipts are defined for the purchase order

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Purchasing

transaction item

Account assignment

category

Account Assignment Categories

Screen sequence

IR for item

Account grouping

Consumption posting

Non-valuated GR

GR for item

Acct assgt can be changed at IR

Acct assgt can be changed after GR/IR

Description

The account assignment category is used for each item of a purchasing document.

You can specify the account assignment categories that are allowed for the individual item
categories.

The account grouping code for the account assignment category allows you to have the R/3 System
suggest a consumption account number when you enter a purchasing document item subject to
account assignment.
You specify this account number when you make the settings for the automatic postings for the
transaction Offsetting entry for inventory posting (GBB).

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Non-valuated
goods receipt
or
No goods receipt

Valuated
goods receipt

Goods receipt

Purchase
order

Invoice

Goods receipt

Invoice

Consumption acct
GR/IR account
Vendor

500 +
500 -

50 +
500 +
550 -

50 pcs

100 pcs at
10.00 UNI/pc.
Acct assignment:
400000 cost ctr 1

50 pcs at
11 UNI/pc.
= 550 UNI

Goods receipt

Invoice

Consumption acct
GR/IR account
Vendor

550 +

550 -

Account Movements for POs with Acct Assignment

If a valuated goods receipt is defined for a purchase order with account assignment, the R/3 System
debits the consumption account at goods receipt. The offsetting entry is made to the GR/IR clearing
account and cleared by the invoice. The R/3 System debits or credits price variances to the
consumption account.

If no goods receipt or only a non-valuated goods receipt is defined for a purchase order with account
assignment, the posting to the consumption account occurs directly in the invoice.

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Limit
exceeded!

12.31.

Purchase
order
Validity period:

01.01.-12.31.

Value limit:

150 000 UNI

01.01.

...

750

20 750

148 000

Date/
Value

Invoice

01.15.

20 000 UNI
CCtr 789

Invoice

12.03.

8 000 UNI
CCtr 456

Invoice

12.20.

10 000 UNI
CCtr 765

Invoice

01.15.

3 000 UNI
CCtr 789

Validity
period
exceeded!

Invoice

01.10.

750 UNI
CCtr 123

Invoices for Blanket Purchase Orders

In Purchasing, you can create blanket purchase orders. Each blanket purchase order has a validity
period, during which invoices for this purchase order can be posted. It also has a value that the total
invoiced quantity must not exceed.

In Customizing, you can set tolerance limits for the limit and the validity period. If the invoice
exceeds the upper tolerance limit for the value, the R/3 System blocks the invoice due to price
variance. If the invoice exceeds the upper tolerance limit for the validity period, the R/3 System
blocks the invoice due to schedule variance.

When you enter an invoice for a blanket purchase order, you can enter as many account assignments
as you require, along with the relevant amounts.

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Invoices for POs with Account Assignment:

Summary

Enter invoices for a purchase order with account
assignment and change the planned account
assignments

Enter invoices relating to a blanket purchase
order

Trace the resulting account movements

You are now able to:

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Invoices for POs with Account Assignment:

Exercises

Unit: Invoices for POs with Account Assignment

At the end of this exercise, you will be able to:
• Enter an invoice for non-stock materials and change the

postings

• Enter the invoice item accounts and invoice amounts for a

blanket purchase order for office supplies

Many items are intended for departmental use or charged to
projects, production orders, or plant maintenance. How can you
trace the account assignments?
A goods receipt is not required for non-stock materials. The R/3
System matches data from the purchase order and invoice only.

1-1

This invoice arrived without a purchase order number for items without material
numbers. You search for the purchase order number and verify the cost centers that
were assigned before posting the invoice.

INVOICE

Sapsota Company Limited

Vendor T-L15A##

Invoice date: (today’s date)
Invoice 7001##

40 pcs

80 UNI

100 pcs

50 UNI

Folders
Pencils
Documentation

1 pc.

40 UNI

Tax:

10% tax

17 UNI

Total due:

187 UNI

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1-1-1 Enter the basic data. Search for the purchase order number using the

information specified in the invoice.
Purchase order number: __________________________________

1-1-2 In

Invoice Verification, how can you see that this is a purchase order with

account assignment? Can you change the cost centers? Which ones? Why?
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________

1-1-3 Simulate the document.

OPTIONAL: Fill in the table.

Item

Account

Amount

001

002

003

004

005

006

007

Post the invoice.
Invoice number: _______________________________________

1-1-4 OPTIONAL: Display the document.

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1-2

You have a blanket purchase order that is used for office supplies. An invoice for
last month’s supplies arrives.

INVOICE

Sapsota Company Limited

Vendor T-L15A##

Invoice date: (today’s date)
Invoice 7002##
This invoice refers to your purchase order number 41515082##

Office supplies – miscellaneous

1400 UNI

Copy paper – cases

2400 UNI

3800

UNI

Tax

10% tax

380 UNI

Total due:

4180 UNI

1-2-1 Enter the basic data and allocate the invoice.

1-2-2 Assign the first line to account 476000 with 700 UNI to cost center 1000

and 700 UNI to cost center 4200. Assign the second line to account 477000
and cost center 1000.

1-2-3 Simulate the document. OPTIONAL: Fill in the table.

Item

Account

Amount

001

002

003

004

005

006

007

008

Post the invoice when the balance is zero.
Invoice number: _______________________________________

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Invoices for POs with Account Assignment:

Solutions

Unit: Invoices for POs with Account Assignment

1-1

Logistics

→ Materials Management → Logistics Invoice Verification →

Document Entry

→ Enter Invoice

1-1-1 You enter the following data on the Basic data tab page:

Field name or data type

Values

Document date

<today’s date>

Reference 7001##

Amount 187

Tax amount

Since no purchase order reference is specified in the invoice, you search for
the purchase order using input help for the allocation Purchase
order/scheduling agreement. A window appears in which you can narrow
down the search. You enter the following data:

Field name or data type

Values

Vendor T-L15A##

When you choose Execute, a list of purchase orders appears. When you
choose

Edit

→ Display items → For all documents

, a list of the materials

ordered in the individual items appears. Purchase order 41515081## is
obviously the purchase order that the invoice refers to. You select the
purchase order and choose Adopt. The system copies the selected purchase
order to the invoice verification screen. You choose Enter to make the
allocation.

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9-16

1-1-2 The account assignment category is displayed in column A (account

assignment). You can change the account assignment if no valuated goods
receipts are defined for the purchase order and you are allowed to change
the account assignment for the account assignment category (Customizing
setting). You can change the account assignment for the first and third
items.

1-1-3 When you choose Simulate, a dialog box appears in which you see the

account movements that will take place when the invoice is posted.

Item

Account

Amount

001

Vendor account

187 -

002

GR/IR clearing account

003

Consumption account

004

GR/IR clearing account

005

GR/IR clearing account

006

Consumption account

007

Tax account

(The zero lines displayed on the GR/IR clearing account are suppressed at
the time of posting.)
You choose Post to post the document. A message appears displaying the
document number.

1-1-4 You can display the invoice document as follows:

Logistics

→ Materials Management → Logistics

Invoice Verification

→ Document Entry → Display Invoice

1-2

Logistics

→ Materials Management → Logistics Invoice Verification →

Document Entry

→ Enter Invoice

1-2-1 You enter the following data on the Basic data tab page:

Field name or data type

Values

Document date

<today’s date>

Reference 7002##

Amount 4180

Tax amount

380

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9-17

You enter the purchase order number as the allocation:

Field name or data type

Values

Purchase order/scheduling
agreement

41515082##

1-2-2 On the item list, you click Multiple account assignment for item 10. A

window appears in which you can enter the account assignment. You enter
the following data:

Field name or data type

Values

Amount 700

G/L account

476000

Cost center

1000

And in the next line:

Field name or data type

Values

Amount 700

G/L account

476000

Cost center

4200

Tax code

Select the second item and choose Adopt.
On the item list, you click Multiple account assignment for item 20. A
window appears in which you can enter the account assignment. You enter
the following data:

Field name or data type

Values

Amount 2400

G/L account

477000

Cost center

1000

Choose Adopt.

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9-18

1-2-3 When you choose Simulate, a dialog box appears in which you see the

account movements that will take place when the invoice is posted.

Item

Account

Amount

001

Vendor account

4180 -

002

GR/IR clearing account

003

Consumption account

700

004

GR/IR clearing account

005

Consumption account

700

006

GR/IR clearing account

007

Consumption account

2400

008

Tax account

380

(The zero lines displayed on the GR/IR clearing account are suppressed at
the time of posting.)
You choose Post to post the document. A message appears displaying the
document number.

1-2-4 You can display the purchase order as follows:

Logistics

→ Materials Management → Purchasing → Purchase order

→ Display

In the item details on the Limits tab page, you can display the value invoiced
so far.

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10-3



SAP AG 1999

Delivery Costs: Course Overview Diagram

Variances Without

Reference to an Item

Basic Invoice Verification

Procedure

Taxes, Cash Discounts,

and Foreign Currency

Variances and

Blocking Reasons

Invoice Reduction

Introduction to

Invoice Verification

Invoices for POs with

Account Assignment

Delivery Costs

Subsequent

Debits/Credits

Invoices Without

Reference to POs

WWW

+ XXXX
+ YYY
= ZZZZ

Customs

+ XX
= ZZ

WWW

+ XXXX
= ZZZZ

WWW

+ XXXX
+ YYY
= ZZZZ

WWW

+ XXXX
+ YYY
= ZZZZ

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10-5



SAP AG 1999

Delivery costs

4500012345

100 pcs

1000 UNI

Freight

2 UNI/pc.

4500023456

100 pcs

1000 UNI

Freight

none

Planned

Unplanned

Invoice for
purchase order 4500012345

100 pcs 1000 UNI
Freight 200 UNI

1200 UNI

Invoice for
purchase order 4500023456

100 pcs 1000 UNI
Freight 50 UNI

1050 UNI

Delivery Costs

Delivery costs can be divided into:

Planned delivery costs

Unplanned delivery costs

Planned delivery costs are entered at item level in the purchase order.

Unplanned costs are entered at invoice receipt.

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10-6



SAP AG 1999

Purchase
order

Planned delivery costs

Freight

Customs

Quantity-dependent

amount

Percentage

of goods value

Fixed amount

Freight

forwarding

Customs

Planned Delivery Costs

Planned delivery costs can be divided into:

Freight costs

Customs

Delivery costs can be invoiced in the following ways:

Fixed amount, independent of scope of supply

Quantity-dependent amount

Percentage of value of goods to be delivered

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

SAP AG 1999

Purchase order: 100 pcs at 1.30 UNI/pc.
Planned delivery costs:

Freight

0.10 UNI/pc.

Customs duty

6.00 UNI

Goods

receipt

Invoice

Goods receipt for this purchase order: 100 pcs
Invoice: 100 pcs at 1.30 UNI/pc.

= 130 UNI

plus Freight 0.10 UNI/pc.

= 10 UNI

Customs duty

= 6 UNI

146 UNI

Account Movements with Planned Delivery Costs

Stock account
GR/IR account
Vendor account
Freight clearing
Customs clearing

146 +
130 -

10 -
6 -

130 +
146 -
10 +
6 +

For planned delivery costs, the R/3 System makes postings to a clearing account at goods receipt.
There are separate accounts for costs of different origins.

These postings are cleared when the invoice is posted.

If the delivery costs in the invoice differ from the planned delivery costs, the R/3 System posts the
differences in the same way as it posts normal price and quantity variances.

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10-8



SAP AG 1999

Price

variance

Customizing

Reference to

purchase order

automatic

Posting to

separate G/L account

Distribution to

invoice items

Invoice

Delivery
costs

Unplanned Delivery Costs

In Customizing for Invoice Verification, you configure whether the R/3 System is to distribute
unplanned delivery costs among the items or post the costs to a separate G/L account.

If the R/3 System distributes unplanned delivery costs among the items, it treats them in the same
way as price differences. However, it does not check the price after distributing the delivery costs.

If the R/3 System distributes unplanned delivery costs among the items, it does not list them
separately in the purchase order history. They are only included in the invoiced value.

If the R/3 System posts unplanned delivery costs to a separate G/L account, they do not appear in the
purchase order history.

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10-9



SAP AG 1999

Purchase order

Material A 100 pcs at 10 UNI/pc.

Material B 50 pcs at 40 UNI/pc.

Distribution of delivery

costs
Material A 50 UNI

Material B 100 UNI

1000:2000

1:2

Invoice

04.20.

Material A

80 pcs -- 800 UNI

Material B

20 pcs -- 800 UNI

Invoice

04.28.

Distribution of Unplanned Delivery Costs

Material A

20 pcs -- 200 UNI

Material B

30 pcs -- 1200 UNI

Delivery costs

150 UNI

The R/3 System apportions unplanned delivery costs to the items in proportion to the total value
invoiced so far and the values in the current invoice.

If the R/3 System is to distribute unplanned delivery costs to the invoice items, you can post an
invoice solely for delivery costs only if you have already posted an invoice.

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10-10



SAP AG 1999

Purchase order:
100 pcs of mat. A at 10 UNI/pc.
50 pcs of mat. B at 40 UNI/pc.

1000 +
1000 -
2000 +
2000 -

50 +
1000 +
100 +
2000 +

3150 -

Goods

receipt

Invoice

Stock acct for mat. A
GR/IR account
Stock acct for mat. B
GR/IR account
Vendor account
Separate G/L account

Account Movements with Unplanned Delivery Costs

Goods receipt for PO:
100 pcs of material A
50 pcs of material B

Invoice for this purchase order:
100 pcs of material A at 10 UNI/pc. = 1000 UNI
50 pcs of material B at 40 UNI/pc. = 2000 UNI

plus Freight

= 120 UNI

Customs duty

= 30 UNI

3150 UNI

1000 +

2000 +

3150 -

150 +

Invoice

Customizing

In the case of unplanned delivery costs, the costs are not split according to their origin.

The way in which the R/3 System posts unplanned delivery costs depends on the settings in
Customizing.

If unplanned costs are apportioned among the purchase order items, the offsetting entry is made to
the respective stock account or cost account for the individual items, or to a price differences
account.

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10-12

Delivery Costs:

Exercises

Unit: Delivery Costs

At the end of this exercise, you will be able to:
• Enter planned freight costs on an invoice
• Enter unplanned delivery costs that are apportioned to the

items

Some of your freight charges are specified in the purchase order.
More often, delivery costs are calculated and included only on the
invoice. You need to test both possibilities.

1-1

This invoice includes purchase order items and freight costs. The freight costs were
already planned in the purchase order.

INVOICE

Sapsota Company Limited

Vendor T-L15A##

Invoice date:

(today’s date)

Invoice 8001##
This invoice refers to your purchase order number 41515091##

T-M15A##

Slugs for cast iron
spiral casings

100 pcs

1000 UNI

T-M15C##

Packing gaskets

100 pcs

5000 UNI

Freight charges:

Slugs for cast iron

spiral casings

100 pcs

150 UNI

Packing gaskets

100 pcs

300 UNI

6450

UNI

Tax:

10% tax

645 UNI

Total due:

7095 UNI

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10-13

1-1-1 Enter this invoice in Logistics Invoice Verification. How can you specify

that the R/3 System is to settle delivery costs items?
______________________________________________________

1-1-2 On the item list, how can you identify which items are delivery costs items?

______________________________________________________

1-1-3 Which delivery costs items does the R/3 System propose?

Item

Text

Quantity
proposed

Value

The delivery costs contain variances. Correct the proposed values. How
does the R/3 System react to the changes?
______________________________________________________
______________________________________________________

1-1-4 Simulate the invoice. Which postings are made?

Item

Account

Amount

001

002

003

004

005

006

007

008

Post the invoice.
Invoice number: _________________________________________

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10-14

1-1-5 Display the invoice and the purchase order history. How are the delivery

costs labeled?
______________________________________________________
______________________________________________________
______________________________________________________

1-2

In this invoice, the vendor added the freight costs.

INVOICE

Sapsota Company Limited

Vendor T-L15A##

Invoice date:

(today’s date)

Invoice 8002##
This invoice refers to your purchase order number 41515092##

T-M15B##

Flat gaskets

100 pcs

5000 UNI

T-M15C##

Packing gaskets

50 pcs

1000 UNI

Freight (flat rate)

440 UNI

6440

UNI

Tax:

10% tax

644 UNI

Total due:

7084 UNI

1-2-1 Enter this invoice in Logistics Invoice Verification. The freight costs are

unplanned delivery costs.

1-2-2 Where do you enter unplanned delivery costs?

______________________________________________________

1-2-3 What does the way in which the R/3 System posts unplanned delivery costs

depend on?
______________________________________________________

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10-15

1-2-4 Simulate the invoice. How does the R/3 System apportion the delivery

costs?

OPTIONAL: Fill in the table.

Item

Account

Amount

001

002

003

004

005

006

007

008

Post the invoice.
Invoice number: _________________________________________

1-2-5 Display the PO history. Are the unplanned costs displayed?

______________________________________________________
______________________________________________________
______________________________________________________

1-3

A forwarding agent sends an invoice for unplanned delivery costs.

INVOICE

Spedition Gruber

Vendor T-L15C##

Invoice date:

(today’s date)

Invoice 3001##
This invoice refers to your purchase order number 41515093##

Additional delivery costs – Rush order

180 UNI

Tax:

10% tax

18 UNI

Total due:

198 UNI

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10-16

1-3-1 Enter the invoice as a subsequent debit due to unplanned delivery costs.

1-3-2 Note that the invoicing party is different to the order vendor. Where do you

enter the different invoicing party?

1-3-3 Under what conditions can you post an invoice for delivery costs only using

unplanned delivery costs? Must you have entered a goods receipt?
______________________________________________________
______________________________________________________

1-3-4 Simulate the document.

OPTIONAL: Fill in the table.

Item

Account

Amount

001

002

003

004

005

006

007

008

Post the invoice.
Invoice number: _________________________________________

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10-17

Delivery Costs:

Solutions

Unit: Delivery Costs

1-1

Logistics

→ Materials Management → Logistics Invoice Verification →

Document Entry

→ Enter Invoice

1-1-1 You enter the following data on the Basic data tab page:

Field name or data type

Values

Document date

<today’s date>

Reference 8001##

Amount 7095

Tax amount

645

You enter the purchase order number as the allocation:

Field name or data type

Values

Purchase order/scheduling agreement

41515091##

Choose More allocation criteria and in the next window, select
Goods/Service items + planned delivery costs. Choose Adopt.

1-1-2 On the item list, the system suggests the purchase order items and the

planned delivery costs. You can identify this from the text.

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10-18

1-1-3 The system proposes the following delivery costs items:

Item

Text

Quantity
proposed

Value

Freight/quantity
Customs

100
100

100
10

Freight %

100

500

You deselect the customs item and change the proposed amounts for the
freight items. When you confirm your changes by choosing Enter, the
system checks the price of the freight items. If there is a variance that lies
outside the permitted tolerance limit, the system blocks the invoice for
payment.

1-1-4 When you choose Simulate, a dialog box appears in which you see the

account movements that will take place when the invoice is posted.

Item

Account

Amount

001

Vendor account

7095 -

002

GR/IR clearing account

1000

003

GR/IR clearing account

5000

004

Freight clearing account

100

005

Stock account

006

Freight clearing account

500

007

Stock account

200 -

008

Tax account

645

You choose Post to post the document. A message appears displaying the
document number.

1-1-5 You can display the invoice document as follows:

Logistics

→ Materials Management → Logistics

Invoice Verification

→ Document Entry → Display Invoice

If you position the cursor on a purchase order number and choose

Environment

→ Display PO history

, the purchase order history appears

for the item. The planned delivery costs are listed separately.

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10-19

1-2

Logistics

→

Materials Management

→

Logistics Invoice Verification

→

Document

Entry

→

Enter Invoice

1-2-1 Enter the following data on the Basic data tab page:

Field name or data type

Values

Document date

<today’s date>

Reference 8002##

Amount 7084

Tax amount

644

You enter the purchase order number as the allocation:

Field name or data type

Values

Purchase order/scheduling agreement

41515092##

You enter the unplanned delivery costs on the Details tab page:

Field name or data type

Values

Unpl. del. csts

440

1-2-3 In Customizing, you can configure whether the system is to apportion

planned delivery costs among the invoice items, or post them in a separate
posting line.

1-2-4 When you choose Simulate, a dialog box appears in which you see the

account movements that will take place when the invoice is posted.

Item

Account

Amount

001

Vendor account

7084 -

002

GR/IR clearing account

5000

003

Stock account

400 -

004

GR/IR clearing account

1000

005

Stock account

006 Tax

account

644

The system apportions the delivery costs using the ratio 10 : 1, because:
For item 20, 5,000 UNI has already been invoiced, and in the current
invoice, another 5,000 UNI is invoiced, making a total of 10,000 UNI. For

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10-20

item 30, no invoice has been entered so far, and in the current invoice 1,000
UNI is invoiced.
You choose Post to post the document. A message appears displaying the
document number.

1-2-5 You can display the invoice document as follows:

Logistics

→ Materials Management → Logistics

Invoice Verification

→ Document Entry → Display Invoice

If you position the cursor on a purchase order number and choose

Environment

→ Display PO history

, the purchase order history appears

for the item. The unplanned delivery costs are not listed as a separate item,
you cannot differentiate between them and price differences.

1-3

Logistics

→ Materials Management → Logistics Invoice Verification →

Document Entry

→ Enter Invoice

1-3-1 You enter an invoice that contains only unplanned delivery costs as a

subsequent debit.

Field name or data type

Values

Transaction Subsequent

debit

You enter the following data on the Basic data tab page:

Field name or data type

Values

Document date

<today’s date>

Reference 8003##

Amount 198

Tax amount

You enter the purchase order number as the allocation:

Field name or data type

Values

Purchase order/scheduling agreement

41515093##

When you choose Enter, the system makes the allocation. Select all items
on the item list.
You enter the unplanned delivery costs on the Details tab page:

Field name or data type

Values

Unpl. del. csts

180

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10-21

1-3-2 In the vendor data, you see that the proposed vendor does not match the

invoicing party. You enter the different invoicing party on the Details tab
page:

Field name or data type

Values

Inv. party

T-L15C##

1-3-3 You can only post invoices containing only delivery costs with reference to

a purchase order if you have already posted an invoice for the purchase
order.

1-3-4 When you choose Simulate, a dialog box appears in which you see the

account movements that will take place when the invoice is posted.

Item

Account

Amount

001

Vendor account

198 -

002

GR/IR clearing account

003

Stock account

004

GR/IR clearing account

005

Stock account

006

GR/IR clearing account

007

Stock account

008

Tax account

(The zero lines displayed on the GR/IR clearing account are suppressed at
the time of posting.)