Managing Supplier Invoices and Line Items


After completing this lesson, you will be able to:

  • Manage supplier open and cleared items
  • Reverse and reset supplier postings

Analyze Supplier Accounts

Jennifer has already been processing a huge number of supplier invoices. When she enters them in the system, she realizes that she can have an overview of all invoices for a particular supplier on this supplier’s account in the Manage Supplier Line Items app. However, Jennifer has also heard from colleagues that it may be useful to start the analysis of a vendor with the transaction figures/balances.

You can input the filter criteria such as the Supplier, Company Code, and Fiscal Year. If you would like to compare Fiscal Years later, you can fill in the Comparison Fiscal Year.

The first tab of the app displays the balances for the chosen supplier/s. Columns two and three list the Credit and Debit Values for each posting period, followed by a column showing the balances. To conduct a thorough analysis of a posting period (for example August), it is essential to determine which specific postings influenced the Debit and Credit values for that timeframe. Selecting the value in the Debit column for this posting period directs you to the individual postings accounting for that value.

To view all postings from one posting period at once and save time, select the balance value for the posting period.

Altering the layout by switching the view, for instance, from Standard to SAP-Clearing Data, is an option. Keep in mind that your project team may have crafted specific views for your organization.

Additional features of this app include the ability to modify the view, navigate to the Journal Entry by selecting the document’s blue number, edit the Line item, generate correspondence, block or unblock the line item for Payment, and create individual payments.

Importing the line items list or altering the settings, for instance, to display different fields, is also possible.

Manage Supplier Line Items

Now let's take a closer look to the apps Display Supplier Balances and Manage Supplier Line Items. Learn how to analyze supplier balances and line items by watching the following video.

Manage Supplier Line Items

Practice yourself using the interactive simulation to view the balances and supplier line items for your supplier by using the SAP Fiori apps Display Supplier Balances and Manage Supplier Line Items..

Open/Cleared Items and Clearing

When Jennifer views the supplier line items, she notices that some of them have red status and are classified as open, while the others have green status and are classified as cleared.

Jennifer figures that whenever a new supplier invoice is recorded in the system, it receives an open status. This status will remain that way, until an offsetting posting is made. In case of an invoice, an offsetting posting is payment. So, once we pay this invoice, its status will be changed to cleared.

To learn more about open and cleared statuses in SAP S/4HANA Finance - supplier accounts- select the play button of the following video.

Usually, an open item can be cleared once a payment is made. However, there is also a different situation, where financial accountants perform housekeeping on existing accounts. In this case, open items may be cleared via manual clearing.

Manual clearing would mean that Jennifer looks at existing supplier accounts and matches the line items that could be cleared. For example, matching existing open invoices with existing credit memos.

Learn how to clear supplier accounts and verify cleared items by watching the following video. Improve your skills in finance!

Clear Supplier Account

Practice yourself using the SAP Fiori apps Clear Outgoing Payments – Manual Clearing..

Reverse Supplier Invoices and Reset Cleared Items

By this point of time, Jennifer is very proficient in entering incoming supplier invoices. But what would happen if she suddenly noticed that one of the invoices has been entered incorrectly? And it affects fields that cannot be changed in a posted document?

What is possible is to reverse this invoice. This would create an additional journal entry that would offset and clear the original invoice that has not been entered correctly.

When it comes to already cleared items, Jennifer would first need to reset the clearing and then reverse the invoice. It's not possible to reverse a document that contains items that have already been cleared.

To fully cancel a vendor invoice, you can start with the Manage Supplier Line Items App. Select the Journal Entry Number and choose the Manage Journal Entries - New version link.

Select the Reversal Reason, input the Posting Date, and then select Reverse. A confirmation message, Journal entry was reversed, will display. The Journal Entry is now counteracted by the Journal Entry of the reversal.

The header displays the Reversal Reason. The Related Document tab provides a comprehensive overview of the transaction.

Note: The document has to be in an open status (not cleared) to allow direct reversal.

You are interested in reversing supplier invoices? Click the play button of the following video!

You are interested in resetting cleared items? Click the play button of the following video!

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