Microsoft Word - 00 Unit.doc



SAP AG 2002

No part of this publication may be reproduced or transmitted in
any form or for any purpose without the express permission of
SAP AG. The information contained herein may be changed
without prior notice.

Copyright

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respective companies.



SAP AG 2002

Target Audience

Participants

Application consultants who are responsible for
introducing procurement with mySAP SCM

User notes

These training materials are not a teach-yourself program. They complement the explanations
provided by your course instructor. Space is provided on each page for you to note down additional
information.

There may not be sufficient time during the course to complete all the exercises. The exercises
provide additional examples that are covered during the course. You can also work through these
examples in your own time to increase your understanding of the topics.

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SAP AG 2002

Course Invoice Verification

Course Mini Case Study

Course Customizing Valuation

and Account
Assignment

Course ASAP

Course Overview

Course Inventory Management

Course Physical Inventory

Course Customizing Inventory

Management

Preface

TSCM 52: Content

This Consultant Training contains different courses each discussing a specific topic.

Each single course is divided into different units.

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Course Content: Inventory Management

Unit

Course Overview

Unit

Goods Receipts

Unit

Reservations and Goods Issues

Unit

Stock Transfers/Transfer Postings

Unit

Special Inventory Management Features

Unit

Consignment

Appendix: Pipeline Processing

This Consultant Training contains different courses each discussing a specific topic.

Each single course is divided into different units.

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Course Content: Physical Inventory

Unit

Course Overview

Unit

Physical Inventory Management

Unit

Cycle Counting

Unit

Inventory Sampling

This Consultant Training contains different courses each discussing a specific topic.

Each single course is divided into different units.

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Course Content: Customizing Inventory Management

Unit

Course Overview

Unit

MM Organizational Levels

Unit Inventory Management

Unit

Master Data in Materials Management

This Consultant Training contains different courses each discussing a specific topic.

Each single course is divided into different units.

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Unit Course Overview
Unit

Introduction to Invoice
Verification

Unit

Basic Invoice Verification
Procedure

Unit

Taxes, Cash Discounts,
and Foreign Currency

Unit

Variances and Blocking
Reasons

Unit

Invoice Reduction

Unit

Variances Without
Reference to an Item

Unit

Invoices for POs with
Account Assignment

Unit

Delivery Costs

Unit Subsequent Debits/Credits
Unit

Invoices Without Reference
to Purchase Orders

Unit

Document Parking

Unit

Credit Memos and
Reversals

Unit

Releasing Blocked Invoices

Unit

Invoice verification in the
Background

Unit

Automated Processing

Unit

GR/IR Account
Maintenance

Unit

Customizing

Course Content: Invoice Verification

This Consultant Training contains different courses each discussing a specific topic.

Each single course is divided into different units.

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Unit Course Overview
Unit

Introduction to Invoice
Verification

Unit

Basic Invoice Verification
Procedure

Unit

Taxes, Cash Discounts,
and Foreign Currency

Unit

Variances and Blocking
Reasons

Unit

Invoice Reduction

Unit

Variances Without
Reference to an Item

Unit

Invoices for POs with
Account Assignment

Unit

Delivery Costs

Unit Subsequent Debits/Credits
Unit

Invoices Without Reference
to Purchase Orders

Unit

Document Parking

Unit

Credit Memos and
Reversals

Unit

Releasing Blocked Invoices

Unit

Invoice verification in the
Background

Unit

Automated Processing

Unit

GR/IR Account
Maintenance

Unit

Customizing

Course Content: Invoice Verification

This Consultant Training contains different courses each discussing a specific topic.

Each single course is divided into different units.

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

Enter invoices for inventory and non-inventory
items

Describe the updates and account postings that
result

Modify cash discount terms and tax information

Set tolerances for price, quantity, and amounts,
and release blocked invoices

Enter planned and unplanned delivery costs

Course Objectives (1)

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

Post invoices in the background

Adjust values with subsequent debits and credits
or with invoice reduction postings

Process evaluated receipt settlements

Maintain the GR/IR clearing account

Configure the Invoice Verification functions

Course Objectives (2)

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Variances Without

Reference to an Item

Course Overview Diagram (1)

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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Course Overview Diagram (2)

Automated

Processing

Document Parking

GR/IR Account

Maintenance

Invoice Verification in

the Background

Automated

Processing

Releasing Blocked

Invoices

Customizing for

Invoice Verification

XXXX

+ YY

= ZZZ

Credit Memos and

Reversals

Conclusion

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Introduction to Invoice Verification: 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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Materials
planning

Invoice

Verification

Internal and external

accounting

Sales and
distribution

Master Data

Materials
Batches
Vendors
G/L accounts
Customers
Warehouses
.
.

Goods receipt

Transfer

posting

Goods

issue

Invoice

receipt

Inventory Management

Internal Procurement

Production

External Procurement

Purchasing

MM Overview

The Invoice Verification component is part of Materials Management.

The main task of the Invoice Verification component is to complete the procedure of materials
procurement by posting the vendor invoice and to pass on information concerning the invoice to
Financial Accounting and subsequent applications.

Invoices that do not originate in materials procurement can also be processed.

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Purchase order

Invoice

Verification

Purchase order

history

Delivery

costs

Material master

Vendor

master

Further

documents

G/L accounts

Assets

Cost centers

Projects

Orders

Invoice Verification Environment

invoice

document

invoice

document

Invoice Verification is not an isolated component within the R/3 System. It operates in conjunction
with the Purchasing and Inventory Management components.

Invoice Verification accesses data located in preceding application areas.

For each incoming invoice, Invoice Verification creates an MM invoice document and an FI invoice
document.

The invoice document updates data in:

Materials Management

Financial Accounting

In addition, further documents can be created automatically in application areas that follow.

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Vendor invoice

Invoice verification

Open vendor items

Invoice

verification

Vendor

Purchase
order

Goods

receipt

Invoice Verification

You can post an incoming invoice with reference to a purchase order, a service, or a goods receipt.

The R/3 System suggests the invoice items according to the reference entered – the corresponding
account postings are carried out automatically.

After the invoice has been posted, the document appears as an open item on the vendor account
(payment proposal list).

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Invoicing plan

EDI

Invoice Receipt

SAP System

Delivery

User Department

Invoice Verification

Rent

Leasing

ERS

Invoice

Consignment

Internet

XML

Invoices can be posted in the R/3 System in several different ways.

The company receives invoices by post, then an employee enters and posts them.

The company receives invoices via electronic transfer and the system posts them automatically (if
the information transferred matches that expected by the system).

The system creates invoices using settlement programs that run at regular intervals (evaluated receipt
settlement, invoicing plan, consignment settlement).

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Invoice

for purchase
order

Doc. no. 51000123

Vendor

100 -

GR/IR

100 +

Material master

MAP
Value

Purchase order history

Goods receipts
Down payments
Invoices

Posting

GR/IR account

Vendor account

Posting an Invoice

When an invoice is posted, the following occurs:

The R/3 System posts the individual line items to the appropriate accounts.

It creates an MM invoice document and an FI document.

It updates the purchase order history.

It updates the material master, if necessary.

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Purchase order

50 pcs at 2.00 UNI/pc.

Goods receipt for this purchase order:

50 pcs

Invoice

50 pcs at 2.00 UNI/pc.

Goods

receipt

Invoice

Account Movements

Stock account
GR/IR account
Vendor

100 +
100 -

When goods are received, the R/3 System debits the stock account and posts the offsetting entry to
the GR/IR clearing account.

In the case of material with a moving average price, the R/3 System posts the stock account with

the value of the net order price multiplied by the quantity of goods received.

In the case of material with a standard price, the R/3 System posts the stock account with the value

of the standard price multiplied by the quantity of goods received. The R/3 System posts the
difference to an account for expenses or revenue from price differences.

When the invoice is posted, the GR/IR clearing account is cleared and the vendor account is credited.

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PO:

50 pcs at 2.20 UNI/pc.

Goods receipt:

50 pcs

Invoice

50 pcs at 2.20 UNI/pc.

Stock account
GR/IR clearing account
Vendor account
Price difference account

Price control V
Total quantity 50
Total value 100.00
Price 2.00

Material master record

Price control    S
Total quantity 50
Total value    100.00
Price      2.00

110 +

110 -

110 +

110 -

100 +

110 -

10 +

110 +

110 -

Total quantity 100
Total value 210.00
Price 2.10

Total quantity 100
Total value 200.00
Price 2.00

Material master record

Standard price

Moving average

price

Price Control

In the material master record of each material, you define how the material is to be valuated.

There are two types of price control:

Standard price

Moving average price

When a material is valuated at a moving average price, the price changes in line with the delivered
costs. If the purchase order price or the invoice price varies from the price in the material master
record, the R/3 System posts the difference to the stock account if there is stock coverage for the
invoice quantity. As a result, the value and the price of the material change.

When a material is valuated at a standard price, the R/3 System posts differences between the
purchase order price or the invoice price and the price in the material master record to a price
difference account. As a result, the price in the material master record remains constant.

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Basic Invoice Verification Procedure: 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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SAP AG 1999

Rogers & Hart
415 Walnut Street
Philadelphia PA 19101

03.05.

SAP America

701 Lee Road
Wayne PA 19087

Invoice no. 1266/33
Re: Your purchase order 4151599001 dated 24.04
We have supplied you with the following goods:

Bearings

50 pcs

1 000.00 UNI

Supports

8 pcs

800.00 UNI

1 800.00 UNI

10% Tax

180.00 UNI

1 980.00 UNI

Payable within 20 days of invoice date,
2% cash discount if payment received within 10 days.
Account 11223344 Bank of California (bank code 300 210 55)

R H

Invoice items

Material

Quantity

Unit of measure

Terms of payment

Amount per item

Tax amount

Tax rate

Invoicing party

Document date

Purchase order

Currency

Addressee

Bank information

Reference

Invoice amount

Information in an Invoice

The user must enter the following information:

Document date, purchase order number

Invoice amount, tax amount, terms of payment (if necessary)

The following information is copied from the purchase order:

Vendor, terms of payment (if defined there), currency

Invoice items

The following information is derived from the purchase order history:

Quantity, amount

The following information is proposed based on the R/3 System settings:

Rate at which tax is calculated

The bank information is stored in the vendor master record.

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Logistics Invoice Verification: Initial Screen

Vendor data

PO structure

Invoice

items

Header

Allocation

Balance

Transaction

Worklist

The screen for entering invoices is divided as follows:

In the Transaction area, you define whether you want to enter an invoice or a credit memo.

The Header area is divided into various tab pages. You enter the document date, the invoice amount
and the tax information here.

In the Allocation area, you enter the number of the document that the invoice refers to (such as a
purchase order number, a delivery note number, a bill of lading number).

In the Invoice items area, the system suggests the invoice items that are ready to be invoiced.

In the Vendor data area, the system displays the name, address, and bank information for the
vendor, once you have matched up the invoice. You can change the data from this screen.

In the Balance area, the system displays the current balance. A traffic light icon indicates whether
the invoice can be posted or not.

In the PO structure area, the system displays the purchase order history for the allocation entered.
You can hide this screen area, if you do not need it. In place of the PO structure, you can display a
brief description of the Invoice Verification functions.

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Basic Invoice Verification Procedure: Allocation

Purchase order/

sched. agreement

Delivery note

Bill of lading

Service

entry sheet

Invoice

refers
to a:

Goods/

delivery costs

Vendor

Multiple

references

Deliveries/

returns

Plants

Further

allocation criteria

Vendor

An invoice can refer to various objects, such as a purchase order or a delivery note.

An invoice for delivery costs can refer to a bill of lading.

An invoice for a service can refer to a service entry sheet.

All deliveries or services provided by a vendor can be settled in a single invoice.

You can choose More allocation criteria to enter additional objects (purchase orders, delivery notes,
and so on) or to enter more search criteria.

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Basic Invoice Verification Procedure: Item List

Sort

Search

Delete items

not selected

Change

layout

PO
4151599002
4151599002
4151599002
4151599002
4151599005
4151599005

Item
0010
0020
0030
0040
0010
0020

PO price
25.00
60.00
18.00
25.00
35.50
22.00

Material
CF499d
RP433a
AC123c
CC487d
EG801j
CP093e

Quantity
40
10

Amount

1000.00

600.00

1000.00

440.00

Tax

10%

9
9

Layout Purchase order

Purch. Order

On the item list, the system suggests all purchase order items that match the allocation and that are
ready to be settled.

There are various layouts for the item list, which enable you to see the item data that is important for
you. You can define new layouts in Customizing for Invoice Verification.

You can sort the item list on a particular column.

You can search for particular terms in the item list.

You can delete the items that are not selected to make the item list easier to read.

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Purchase
order

4151599002
100 pcs
GR-based IV

Selection via

goods receipt/

delivery note

Delivery note AX123
50 pcs

Selection via

purchase order

Delivery 3

Delivery 2

Delivery 1

Delivery note AX456
40 pcs

Delivery note AX789
10 pcs

Invoice

for purch. order
4151599002

40 pcs

Item list

4151599002

100 pcs

Purchase-Order-Based Invoice Verification

When purchase-order-based Invoice Verification has been defined, all items in the purchase order are
presented on the item list.

The suggested quantity is the difference between the total delivered quantity and the total invoiced
quantity.

When you enter an invoice and match it using the delivery note number, the R/3 System looks for the
corresponding purchase order item and then proceeds in the same way as when you enter an invoice
using the purchase order number.

If there are several goods receipts and invoices for a purchase order item, the purchase order history
does not tell you which invoice came from which vendor.

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Item list

4151599003 40 pcs

Item list

4151599003 50 pcs
4151599003 40 pcs
4151599003 10 pcs

Delivery note BX123
50 pcs

Delivery 2

Delivery 1

Delivery note BX456
40 pcs

Delivery note BX789
10 pcs

Delivery 3

Invoice

for purch. order
4151599003
Del. note
BX456

40 pcs

Purchase
order

4151599003
100 pcs
GR-based IVX

Selection via

delivery note

Selection via

purchase order

Goods-Receipt-Based Invoice Verification

9
9
9

Goods-receipt-based Invoice Verification must be defined in the purchase order.

When you work with goods-receipt-based Invoice Verification, each goods receipt is settled
separately.
Goods receipts and invoices are matched in the purchase order history.

When you work with goods-receipt-based Invoice Verification, it is not possible to post an invoice
before the first goods receipt.

When you work with goods-receipt-based Invoice Verification, the invoice quantity should not be
greater than the actual delivered quantity. However, it is possible to post a larger invoice amount.
You cannot “reassign” invoices from one goods receipt to another.

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Invoice

for purchase
order

Note last setting

Communication

with vendor

Error log

Simulate
postings

Environment

information

Hold document

Search for

allocation

Other Functions

Before posting the invoice, you can simulate the postings to be made.

If the wrong reference is given in the invoice, you can search for possible matches using the F4 help
function (purchase orders by vendor and so on).

You can display various information about the environment for the current session, for example, the
purchase order history, purchase order, processors to date for the purchasing transactions, or material
data.

You can communicate directly with the vendor while entering the invoice.

You can “hold” the data entered for an invoice in a temporary MM document. You can change and
post a held document at a later time.

Error log – The R/3 System collects error messages in a log.

The R/3 System notes the last control data used and suggests them again the next time that the user
logs on. This data includes transaction, header tab page, allocation, item list display variant, and
show/hide PO structure.

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Exercise Data Sheet

Key to Icons in Exercises and Solutions

Exercises

Solutions

Course Objectives

Business Scenario

Hints and Tips

Warning or Caution

Data Used in Exercises
Type of Data

Data in Training System

Company code

1000

Vendor

T-L15A##
T-L15B##
T-L15C##
T-L15D##

Materials T-M15A##

T-M15B##
T-M15C##
T-M15D##
T-M15E##

Tax rate 0%

Tax rate 10%

Tax rate 5%

G/L account

400000

GR/IR clearing account

191100

Cost center

T-L##

Currency UNI

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Basic Invoice Verification Procedure:

Exercises

Unit: Basic Invoice Verification Procedure

At the end of this exercise, you will be able to:
• Post a simple invoice in Logistics Invoice Verification
• Compare goods-receipt-based invoice verification with

purchase-order-based invoice verification

Your company wants to learn about entering invoices in Logistics
Invoice Verification. The company also wants to decide whether
to implement goods-receipt-based invoice verification.

1-1

You receive an invoice from Sapsota Company Limited. Enter the invoice in
Logistics Invoice Verification.

INVOICE

Sapsota Company Limited Vendor T-L15A##
Invoice date: (today’s date)
Invoice 2003##
This invoice refers to your purchase order number 41515031##

T-M15C##

Packing gaskets

100 pcs

2000 UNI

T-M15D##

Lantern rings

50 pcs

250 UNI

Tax:

10% tax

225 UNI

Total due:

2475 UNI

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

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1-1-2 On the item list, the system proposes a number of items with quantities and

values. Display the PO structure to analyze the purchase order history for
the individual item. Fill in the following table.

Current invoice

Purchase order history

Order item

Proposed
amount

Proposed
quantity

GR
quantities

Invoice
quantities

1-1-3 If necessary, correct the proposed values until there are no differences.

1-1-4 Simulate the postings that will take place. Fill in the table.

Item

Account

Amount

001

002

003

004

005

006

007

008

Post the document.
Invoice number: _________________________________________

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1-2

This invoice refers to several delivery notes. You want to post it using Logistics
Invoice Verification.

INVOICE

Sapsota Company Limited Vendor T-L15A##
Invoice date: (today’s date)
Invoice 2004##
This invoice refers to your delivery notes 30R3## and 58E4##

T-M15A##

Slugs for cast iron
spiral casings

10 pcs

100 UNI

T-M15B##

Flat gaskets

20 pcs

1000 UNI

T-M15C## Packing

gaskets

20 pcs

400 UNI

Tax:

10%

tax

150

UNI

Total due:

1650 UNI

1-2-1 Enter the basic data and allocate the invoice. Choose the More allocation

criteria arrow to enter the delivery note numbers.

1-2-2 On

the

Item List, the system proposes a number of items with quantities and

values. Display the purchase order history for all items and fill in the table
below:

Current invoice

Purchase order history

Purchase
order/PO
item

Proposed
amount

Proposed
quantity

GR
quantities

Invoice
quantities

41515032##
/10

41515032##
/20

41515033##
/10

1-2-3 Why does the system not propose all quantities received for the goods-

receipt-based invoice verification items?
______________________________________________________
______________________________________________________

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1-2-4 If necessary, correct the proposed values until there are no differences.

1-2-5 Simulate the postings that will take place. Fill in the table.

Item

Account

Amount

001

002

003

004

Post the document.
Invoice number: _________________________________________

1-2-6 Describe

the

differences between goods-receipt-based invoice verification

and purchase-order-based invoice verification.
______________________________________________________
______________________________________________________
______________________________________________________

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1-3

You receive the following invoice and enter it in Logistics Invoice Verification.

INVOICE

Sapsota Company Limited Vendor T-L15A##
Invoice date: (today’s date)
Invoice 3001##
This invoice refers to your purchase order number 41515034##

T-M15A##

Slugs for cast iron
spiral casings

100 pcs

900 UNI

T-M15C##

Packing gaskets

20 pcs

400 UNI

T-M15D##

Lantern rings

100 pcs

300 UNI

Tax:

10% tax

320 UNI

Total due:

19200 UNI

1-3-1 Enter the basic data and allocate the invoice.

1-3-2 On the item list, the system proposes a number of items with quantities and

values. You establish that there are obviously differences. What direct
support does the system give you to find out the reasons?
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________

1-3-3 Since you cannot contact anyone about this invoice at the moment, you

choose Hold.

Invoice number: _________________________________________

1-3-4 What happens when you hold an invoice? How can you display a held

document? Does the system display held documents in the purchase order
history? How can you reprocess the document? Is there an accounting
document?
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________

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Basic Invoice Verification Procedure:

Solutions

Unit: Basic Invoice Verification Procedure

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 2003##

Amount 2475

Tax amount

225

Enter the purchase order number as the allocation:

Field name or data type

Values

Purchase order/scheduling
agreement

41515031##

1-1-2 The R/3 System proposes the purchase order items with the quantities and

values to be invoiced. When you choose Show PO structure, you can
display the transactions that have already been posted for the purchase order
items.

Current invoice

Purchase order history

Order item

Proposed
amount

Proposed
quantity

GR
quantities

Invoice
quantities

1000

100

2000

100

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4-21

1-1-3 Since the invoice does not contain item 10, which the R/3 System has

proposed, you delete the selection of that item in the relevant selection field.
Since the invoice contains item 40, which the system has not proposed, you
enter the following data for this item:

Field name or data type

Values

Quantity 100

Amount 250

You choose Enter to confirm your changes.
The R/3 System checks the quantity for item 40. If necessary, you receive a
warning message informing you that the delivered quantity is zero. You
acknowledge this message by choosing Enter.

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

2475 -

002

GR/IR clearing account

2000

003

GR/IR clearing account

250

004 Tax

account

225

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

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4-22

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 2004##

Amount 1650

Tax amount

150

Then you change the allocation from Purchase order/scheduling agreement
to Delivery note and choose More allocation criteria.

Field name or data type

Values

Delivery note

30R3##

Delivery note

58E4##

1-2-2 The system proposes the purchase order items with the quantities and values

to be invoiced. When you choose Show PO structure, you can display the
transactions that have already been posted for the purchase order items.

Current invoice

Purchase order history

Purchase
order/PO
item

Proposed
amount

Proposed
quantity

GR
quantities

Invoice
quantities

41515032##/
10

100

20 + 10

41515032##/
20

1000

20 + 20

41515033##/
10

1400

20 + 50

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4-23

1-2-3 Since goods-receipt-based invoice verification is defined for both items of

purchase order 41515032## and you have entered the delivery note numbers
as the allocation, the system does not propose other goods receipts for these
items.
Since goods-receipt-based invoice verification is not defined for purchase
order 41515033##, the system proposes the total of all goods receipts.

1-2-4 You change the proposed values in purchase order 41515033##.

Field name or data type

Values

Quantity 20

Amount 400

You choose Enter to confirm your changes.

1-2-5 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

1650 -

002

GR/IR clearing account

100

003

GR/IR clearing account

1000

004

GR/IR clearing account

400

005 Tax

account

150

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

1-2-6 The differences between goods-receipt-based invoice verification and

purchase-order-based invoice verification:
In goods-receipt-based invoice verification, there is a clear allocation of
invoice items to individual deliveries.
In goods-receipt-based invoice verification, it is not possible to enter an
invoice before the first goods receipt.

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4-24

1-3

Logistics

→ Materials Management → Logistics Invoice Verification →

Document Entry

→ Enter Invoice

1-3-1 You enter the following data on the Basic data tab page:

Field name or data type

Values

Document date

<today’s date>

Reference 3001##

Amount 3520

Tax amount

320

Enter the purchase order number as the allocation:

Field name or data type

Values

Purchase order/scheduling
agreement

41515034##

1-3-2 The following functions are available for analyzing the variances:

Display the purchase order history by choosing Show PO structure
Display the purchase order by double-clicking the purchase order number
Display the internal contacts on the Contacts tab page
Contact the vendor

1-3-3 When you choose Hold, the system saves a document containing the data

entered so far. A message appears displaying the document number.

1-3-4 When you hold a document, the system creates an MM document in which

the data entered is saved.
The system does not display held documents in the purchase order history.
You can display and continue processing a held document by choosing

Logistics

→ Materials Management → Logistics Invoice

Verification

→ Further Processing → Invoice Overview.

There is no accounting document for a held document.

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5-3



SAP AG 1999

Taxes, Cash Discounts, and Foreign Currency:

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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5-5



SAP AG 1999

Tax authorities

A A

Customer

Vendor

Material value

+ Input tax

Material value

+ Output tax

Tax payable

Company

Sales Tax

The value added to goods results from the difference between the purchase price and the sales price.
An example of value-added tax, more commonly referred to in the USA as sales tax, would be the
amount the State adds on top of the sales price.

Sales tax can be divided into input tax and output tax.

The difference between output tax and input tax is the tax payable, which must be paid to the tax
authorities.

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5-6



SAP AG 1999

Entering Tax Data

Invoice

Material A

1000

Material B

2000

Material C

4000

5% tax

150

10% tax

400

7750

Basic data

Amount

7550

Tax amount

400

Tax code 1I

Calculate tax

Tax data

Tax

Base

amount code

amount

400

4000

150

3000

Purchase order item
G/L account
Last used tax code

Customizing

Item list

Material

Amount

Tax code

1000

2000

4000

Tax data

A tax code is defined for each tax rate in Customizing for Financial Accounting. This tax code
defines how the R/3 System calculates the tax and how it is to post the tax.

You enter the tax rates and tax amounts specified in the invoice in the header screen area when you
enter the invoice. If the tax amounts are not specified in the invoice, you select Calculate tax. The
R/3 System then calculates the tax amounts.

Each tax-relevant item is allocated a tax code. The R/3 System reads the relevant tax code for each
item from the purchase order or from the account to be posted to. If it cannot determine a tax code
for an item, the R/3 System uses the one that was last used.

The item tax codes are displayed in the item list and can be changed there, if necessary.

The R/3 System calculates the tax base for each tax code from the amounts and tax codes of the
individual items.

It verifies the tax data when you simulate or post an invoice. You can make corrections and changes
on the tab page Taxes.

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5-7



SAP AG 1999

Payment

Terms of Payment

Purchase order header
TERMS OF DELIVERY AND PAYMENT
Terms of payment 0003

Payment in

10 days 3%

Payment in

20 days 2%

Payment in

30 days net

Purchase order

Invoice

Basic data

Amount
Tax amount

Tax code

Terms of payt

10 days 3%, 20 days 2%,

30 net

Display

Baseline date _______
Cash discount amount ______
Terms of payt 0003 10 days 3%

20 days 2%
30 days net

Change

Details

Basic data

Details

Payment

The system contains keys that represent terms of payment, for example:

ZB01

within 14 days: 5% cash discount

within 21 days: 3% cash discount
within 40 days: no deduction

When you enter an invoice, the system suggests the terms of payment in the purchase order. You can
change these default values.

In Invoice Verification, you can enter terms of payment or a fixed cash discount amount.

You can define installment conditions in Customizing for Financial Accounting. If you enter an
installment condition in Invoice Verification, the system creates a separate vendor line in the
accounting document for each installment at the time of posting.

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5-8



SAP AG 1999

Post invoice

Material/costs

Payment program

Non-operating result

Posting gross

Posting net

Post invoice

Material/costs

Invoice

Total

100

% disc. 3

Invoice

Total

100

% disc. 3

Posting Gross/Net

There are two ways of posting the cash discount amount:

Gross

If you post the gross amount of an invoice, the R/3 System ignores the cash discount amount when

you enter the invoice; it posts the cash discount amount to a “cash discount” account at the time of
payment. Therefore, the cash discount amount is not credited to the stock or cost account.

Net

If you post the net amount of an invoice, the R/3 System posts the cash discount amount from a

cash discount clearing account to the stock or cost account. The cash discount clearing account is
cleared at the time of payment.

Whether an invoice is posted gross or net depends on the document type.

You define the document types in Customizing for Invoice Verification. For each document type,
you indicate whether postings should be made gross or net. You also set the type of document that
the R/3 System suggests when an invoice is entered.

When you are entering invoices, you can change the document type on the tab page Extras.

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5-9



SAP AG 1999

Purchase order: 5 pcs at 20.00 UNI/pc.
Goods receipt for this purchase order: 5 pcs
Invoice: 5 pcs at 20.00 UNI/pc.

= 100.00 UNI

10% tax

= 10.00 UNI
= 110.00 UNI

less 5% cash discount

= 5.50 UNI
104.50 UNI

Stock account
GR/IR account
Vendor account
Input tax
Bank
Non-operating result

110 +
0.50 -
104.50 -
5 -

100 +
110 -
10 +

100 +
100 -

Goods receipt

Invoice

FI payment

Account Movements: Gross Posting

The R/3 System ignores the cash discount amount when posting the invoice.

The cash discount amount is posted at the time of payment:

The cash discount amount for the net invoice value is posted as a non-operating result.

A cash discount difference is created as a result of the input tax. The R/3 System therefore corrects

the input tax posted, so that the tax amount is the tax on the net value of the invoice.

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5-10



SAP AG 1999

Purchase order: 5 pcs at 20.00 UNI/pc.
Goods receipt for this purchase order: 5 pcs
Invoice: 5 pcs at 20.00 UNI/pc.

= 100.00 UNI

10% tax

= 10.00 UNI
= 110.00 UNI

less 5% cash discount = 5.50 UNI

104.50 UNI

Stock account
GR/IR account
Vendor account
Input tax
Bank
Cash discount
clearing account

5 -
100 +
110 -
10 +

5 +

100 +
100 -

110 +
0.50 -
104.50 -

5 -

Goods receipt

Invoice

FI payment

Account Movements: Net Posting

The cash discount amount is already taken into account when the invoice is posted.

The cash discount amount is posted to a cash discount clearing account. This is cleared at the time of
payment.

The offsetting entry for the posting to the cash discount clearing account is made to the stock
account, except in the following cases:

If the material is subject to standard price control, the R/3 System posts the difference to a price

difference account.

If the material is subject to moving average price control and there is insufficient stock coverage,

the R/3 System posts to the stock account only the amount for which stock coverage is available. It
posts the remainder to a price difference account.

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5-11



SAP AG 1999

Invoices in a Foreign Currency

Purchase order
10 pcs at $63/pc.
Ex. rate M2
Fixed ex. rate

Conversion using current ex. rate

Conversion using PO ex. rate

Invoice

10 pcs
at $63/pc.
= $630

Local currency

10 pcs

315 UNI

M1.8

350 UNI

300 UNI

M2.1

UNI

PO currency

Exchange rate differences

Invoice

10 pcs
at $63/pc.
= $630

10 pcs

PO ex. rate

Current ex. rate

Current ex. rate

entered ex. rate

In the case of a purchase order in a foreign currency, you can use a fixed exchange rate. If this is the
case, the R/3 System uses this exchange rate to convert the foreign currency to the local currency at
goods receipt and at invoice receipt.

If the exchange rate is not fixed in the purchase order, the R/3 System uses the current exchange rate
to convert the foreign currency to the local currency at goods receipt. In Invoice Verification, it also
suggests the current exchange rate, but you can change it.

If the exchange rate is not fixed in the purchase order, exchange rate differences can occur as a result
of using different exchange rates. Exchange rate differences are actually the same as price
differences. The way that the R/3 System posts exchange rate differences depends on the settings in
Customizing for Invoice Verification.

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5-13

Taxes, Cash Discounts, and Foreign Currency

Exercises

Unit: Taxes, Cash Discounts, and Foreign Currency

At the end of this exercise, you will be able to:
•  Enter and change tax data
•  Enter and change cash discount information
•  Post gross or net of cash discounts
•  Post an invoice in foreign currency

There are several factors that affect the total amount of an invoice.
Your company must follow local tax regulations. You often have
to enter tax codes if they were not entered in the purchase order.
Your company would like to deduct cash discounts whenever
possible. You can enter or change the vendor early-payment
discount.

1 -1

You receive an invoice containing several tax rates.

INVOICE

Sapsota Company Limited Vendor T-L15A##
Invoice date:

(today’s date)

Invoice 4001##
This invoice refers to your purchase order number 41515041##

T-M15A##

Slugs for cast iron
spiral casings

100 pcs

1000 UNI

T-M15B##

Flat gaskets

20 pcs

1000 UNI

T-M15C## Packing

gaskets

150 pcs

3000 UNI

5000

UNI

Tax:

10% Tax items

1, 3

400 UNI

Tax:

5% Tax items 2, 3

50 UNI

Total due:

5450 UNI

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5-14

1-1-1 Enter this invoice in Logistics Invoice Verification.

1-1-2 Did the system propose tax codes for the invoice?

______________________________________________

________

1-1-3 Display the purchase order. Were tax codes defined for each item?

______________________________________________________

1-1-4 If required, correct the tax rates on the item list.

1-1-5 Simulate the postings that will take place.

OPTIONAL: Fill in the table.

Item

Account

Amount

001

002

003

004

005

006

Post the document.
Invoice number: _________________________________________

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5-15

1-2

This invoice arrived with different payment terms than usual for the supplier. You
would like to post the document net to take advantage of the discount immediately.

INVOICE

Sapsota Company Limited Vendor T-L15A##
Invoice date: (today’s date)
Invoice 4002##
This invoice refers to your purchase order number 41515042##

T-M15A##

Slugs for cast iron
spiral casings

20 pcs

200 UNI

T-M15B##

Flat gaskets

30 pcs

1500 UNI

T-M15E##

HD brake system

10 pcs

600 UNI

2300

UNI

Tax:

10% tax

230 UNI

Total due:

2530 UNI

Payable within 10 days with 3% cash discount, payable within 15 days
with 2% cash discount, payable net within 60 days

1-2-1 Enter this invoice net in Logistics Invoice Verification. Check the default

document type and change it to Net invoice receipt, if necessary.

1-2-2 Check the terms of payment and change them, if necessary.

1-2-3 Before you simulate the postings, answer the following questions: How does

the system post the cash discounts? Does the valuation of the material affect
the postings?
______________________________________________________

______________________________________________________

1-2-4 Which discount percentage does the system use in the calculation?

______________________________________________________

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5-16

1-2-5

Simulate the postings that will take place.

OPTIONAL: Fill in the table.

Item

Account

Amount

001

002

003

004

005

006

007

008

009

Post the document.
Invoice number: _________________________________________

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5-17

1-3

This invoice refers to a purchase order in foreign currency. You want to post the
document gross.

INVOICE

ECD, Forster City

Vendor T-L15D##

Invoice date: (today’s date)
Invoice 4003##
This invoice refers to your purchase order number 41515043##

T-M15A##

Slugs for cast iron
spiral casings

20 pcs

120 USD

T-M15B##

Flat gaskets

10 pcs

200 USD

320

USD

Tax: not subject to tax

1-3-1 Enter this invoice in Logistics Invoice Verification. Leave the field

Currency blank to start with. Which currency does the system propose once
you have allocated the invoice?
______________________________________________________

1-3-2 Which exchange rate is specified in the purchase order? Check if the goods

receipt was posted using this exchange rate.
______________________________________________________

1-3-3 Can you change the exchange rate in Invoice Verification?

______________________________________________________

1-3-4 Simulate the document. Display the document simulation in the local

currency and the document currency.

Item

Account

Amount in
UNI

Document
currency

001

002

003

004

005

Post the document.
Invoice number: _________________________________________

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5-18

Taxes, Cash Discounts, and Foreign Currency:

Solutions

Unit: Taxes, Cash Discounts, and Foreign Currency

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 4001##

Amount 5450

You choose the Tax tab page and enter the tax information:

Field name or data type

Values

Tax amount

400

Tax code

10% input tax

Tax amount

Tax code

5 % input tax

You enter the purchase order number as the allocation:

Field name or data type

Values

Purchase order/scheduling agreement

41515041##

You check the items that the system proposes on the item list.

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5-19

1-1-2 On

the

Basic data tab page, the system proposes the tax code defined in

Customizing.
On the item list, the system proposes 10% input tax for all items.

1-1-3 You branch to the display of the purchase order item by double-clicking the

purchase order number on the item list. On the Invoice tab page, you can see
which tax code was preplanned. When you choose Back, you return to
Invoice Verification. Ten percent input tax was planned in all the items.

1-1-4 You change the tax code for the second item to 5% input tax on the item list.

1-1-5 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

5450 -

002

GR/IR clearing account

1000

003

GR/IR clearing account

1000

004

GR/IR clearing account

3000

005 Tax

account

400

006 Tax

account

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

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5-20

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 4002##

Amount 2530

Tax amount

230

You enter the purchase order number as the allocation:

Field name or data type

Values

Purchase order/scheduling agreement

41515042##

On the Details tab page, you verify the document type and change it to a net
document type, if necessary.
You check the items that the system proposes on the item list.

1-2-2 The system displays the terms of payment on the Basic data tab page. To

change the terms of payment, you go to the Payment tab page and enter the
days and percentages specified in the invoice.

1-2-3 If the material in an item is subject to valuation at a moving average price,

the system credits the stock account for the material with the amount of the
cash discount revenue for the item. This changes the moving average price
of the material.

1-2-4 The system uses the first percentage rate to calculate the cash discount.

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5-21

1-2-5 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

2530 -

002

GR/IR clearing account

200

003

Stock account

6 -

004

GR/IR clearing account

1500

005

Stock account

45 -

006

GR/IR clearing account

600

007

Price difference account

18 -

008 Tax

account

230

009

Cash discount clearing
account

The system credits the stock account for the first two materials. It posts the
amount of the cash discount to a price differences account for the third
material, which is subject to valuation at a standard price.

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

1-3

Logistics

→ Materials Management → Logistics Invoice Verification →

Document Entry

→ Enter Invoice

1-3-1 You enter the following data on the Basic data tab page:

Field name or data type

Values

Document date

<today’s date>

Reference 4003##

Amount 320

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5-22

You enter the purchase order number as the allocation:

Field name or data type

Values

Purchase order/scheduling agreement

41515043##

The system proposes the currency planned in the purchase order: USD.

1-3-2 You reach the display of the purchase order item by double-clicking the

purchase order number on the item list.

You see in the purchase order header that the planned exchange rate is
1.8875.
You see in the purchase order history for item 10 that the goods receipt was
posted with a value of 120.00 USD and 226.50 UNI in local currency, so the
exchange rate was 1.8875.

1-3-3 You can display the exchange rate on the Details tab page. You can change

the exchange rate, if it has not been fixed in the purchase order header.

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.
When the balance of the document is zero, you can display the account
movements in local currency (and in other currencies, if available) by
choosing Change display currency.

Item

Account

Amount in
UNI

Document
currency

001

Vendor account

640

320 -

002 GR/IR

clearing

account

226.50 120

003

Stock account

13.50

004 GR/IR

clearing

account

377.50 200

005 Stock

account 22.50