Invoice verification in SAP system

Invoice verification in SAP system

The SAP system is composed of several components, so different departments in a company can cooperate with each other.
Invoice verification is part of the material management (MM) system. It connects material management and financial accounting, cost control, and asset management.
The invoice verification of the material management module serves the following purposes:

• It completes the entire process of material procurement-material procurement starts from the procurement application, followed by procurement and receipt, and ends with receipt of the invoice.
• It allows you to process invoices that are not purchased based on materials (such as service charges, other expenses, process fees, and so on ).
• It allows you to process credit creden., either by canceling an invoice or by downgrading it.

Invoice verification does not process or analyze the invoice. The information to be processed is transmitted to other departments.
Invoice verification tasks include:

• Enter the received invoice and credit credential.
• Check invoice content, price, and calculation accuracy.
• Execute account accounting for an invoice
• Update some data in the SAP system, such as unsettled items and material prices.
• Check the invoices that are frozen because of the large discrepancy with the purchase order.

High Integration of the SAP system allows these tasks to be performed smoothly and efficiently.
 

Invoice verification process

Each invoice contains different information items. Bill an invoice and you must send the information to the computer. If an invoice reflects an existing transaction, some information is saved in the system. The system recommends that you compare the missing data and make any modifications as needed.
If the invoice is based on a purchase order, you only need to enter the purchase order number. The system selects the correct transactions and extracts data from the purchase order, including suppliers, materials, quantity ordered, terms of supply, and terms of payment. Of course, if there is a change, you can modify the missing data. You can display the history of the purchase order, for example, how many goods have arrived and how many invoices have been issued.

If there are changes in the purchase order or receipt and invoice, the system will issue a warning on the screen. If the change is within the preset range of permitted, the system will allow the invoice to be recorded, but will automatically freeze it to be paid. The invoice must be approved in a separate step. If the change is not within the permitted range, the system will not allow the invoice to be recorded.
When the invoice is entered, the system will find the corresponding account. The system will automatically generate sales tax, cash discount liquidation and price differences, and these accounting records are displayed. If the balance exists, the user must correct it because the invoice can be recorded only when the balance is zero.
As long as the invoice is recorded, some data is updated in the system, such as the average price of the purchased item and the history of the purchase order.

Invoice accounting has completed invoice verification. The data to be paid in the invoice is included in the system. The accounting department can read the data and make appropriate payments with the assistance of the financial accounting department.

 

Invoice verification type

As a rule, an invoice indicates a transaction, and the sender of the transaction requires payment. Invoice verification varies according to the types of invoices involved:

• Invoice Based on purchase order

Based on the invoice verification of a purchase order, all items of an order can be processed together, regardless of whether a project is received in several partial receipts. All receipts are collected and recorded as a project.

• Receipt-based invoice

Based on the invoice verification of receipt, each individual receipt is invoiced separately

• Invoice without order

If there is no purchase order for reference, you can directly log the transaction into a material account, a general ledger account, or an asset account.

 

Data in the SAP system

In invoice verification-like in other applications-the SAP system often needs to read stored data, which can be modified or added as needed.
According to the information type, data is stored in different master records of the SAP system (such as material master records or supplier master records ). Data center storage avoids data redundancy. It also ensures that information from different departments (material demand planning, procurement, inventory management, quality management and invoice verification) is updated in a timely manner and can be obtained by other departments at any time.
Key data required for invoice verification is:

• Primary data
• Transaction data

If an invoice contains cash discounts and taxes, the invoice will be recorded in more taxes than should be recorded due to the absence of cash discounts. Whether the invoice is recorded as a gross value or a net worth value, it will occur. After the accounting payment, the tax value is automatically adjusted, that is, the cash discount tax is recorded in the input tax account.

Primary data

Primary data is permanent data about objects in the SAP system, such as materials. Each object has a unique sequence number that can be identified in the system.

Material Data

Material data reflects the company's purchased or produced materials. It includes the item number, item name, measurement unit, storage date, out-of-stock and supply shortage range, and reminderCodePrice Control Data and price grid. Material Data is jointly maintained by different departments in the material management field.

Supplier Data

Supplier Data provides information about suppliers that communicate with the company. Supplier Data includes addresses, bank data, names of Bank headquarters, currencies used by suppliers, and payment and delivery terms. Supplier Data is maintained by the procurement and accounting departments.

Accounting Data

Accounting data is used to define general ledger accounts. It includes the account name, Account type,
Currency used by account management, whether an account can be directly recorded and
The Information allocated to the financial budget. The accounting data is maintained in the financial accounting module.

Transaction data

Transaction data records transactions and events in the SAP system. At any time, when you charge a purchase order, supply time agreement, receipt, or distribution, the system automatically generates a credential. The data of a transaction credential depends on the application field of the transaction. Each credential has a credential number, which can be clearly identified.

Purchase credential

A purchase certificate contains the supplier serial number, purchase order date, delivery terms, material number, and order quantity.

Material credential

When the receipt is recorded, a material credential is generated. It contains the billing date, the number of deliveries, and the invoice number and purchase order number that should be referenced in the receipt. The material creden。 record a change in quantity.

Accounting credential

When an estimate is received and an allocation is recorded, an accounting credential is generated. It contains detailed individual accounting information, such as the accounting account, accounting code and quantity. Accounting creden。 record changes in numerical form.