Managing Invoices

After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Explain the integration of invoice verification with accounting

Current Process Step

The next business process step in procurement is invoice management.

Select the business process steps listed below, to learn more about the selected scope items:

Invoice Verification Environment

Having processed the goods received for our purchase orders, we need to understand the need for invoice verification and the process to follow. As our company receives invoices from several vendors, we will have a look at how we can process invoices from multiple suppliers in MM.

Usually, the process Invoice posting takes place in Finance. Logistics Invoice Verification is part of SAP S/4HANA Sourcing and Procurement. Logistics Invoice Verification checks incoming invoices for accuracy with regards to content, price, and accounting. The check occurs at the end of the logistics chain that comprises purchasing, inventory management, and invoice verification

The main task of Logistics Invoice Verification is to complete the procedure of materials procurement by posting the supplier invoice and passing on the invoice information to Financial Accounting (FI) and subsequent applications.

Logistics Invoice Verification is not an isolated component in the SAP system. It operates in conjunction with the purchasing and inventory management components and accesses data located in these application areas.

You can post an incoming invoice with reference to a PO, a GR, or a service entry. The system suggests the invoice items according to the reference entered, and the corresponding account postings are carried out automatically.

For each incoming invoice, Logistics Invoice Verification creates an MM invoice document and an FI accounting document (also known as an invoice document). These accounting documents record the updates in Materials Management and Financial Accounting.

Invoice Receipt

We’ll have a closer look at the topic. Please start with the interaction below, to learn more:

Posting an invoice has the following effects in the system:

  • The amounts of the individual items are posted to the appropriate accounts.
  • An MM invoice document and an FI document are created
  • The PO history is updated
  • If necessary, the material master is updated

As we have heard already in the goods movement postings there is an impact of the price control to the accounting postings.

How to Post an Invoice

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