Purchase order-based invoices are associated with one or more purchase orders. This type of invoice can be created:
- By suppliers in their SAP Business Network account by performing a PO flip. It converts the PO into an invoice by transferring all relevant PO data to the invoice and enforces buyer business rule validation.
- By the Accounts Payable department of the customer when they receive paper PO-based invoices from suppliers not on SAP Business Network. Users need to link the electronic PO with the invoice and enter all taxes, charges or discounts manually.
Rules for adding taxes and charges to invoices
By default, when you create a PO-based invoice in your SAP Ariba invoicing solution, the taxes on the purchase order are not copied to the invoice. You need to apply taxes on the invoice manually based on the paper invoice received from the supplier. SAP Ariba can configure your site to copy tax, charge, and discount information from the purchase order.
Here are some general rules to keep in mind when adding taxes manually to an invoice:
Taxes - You can add taxes either at the header level or at the line-item level but not at both. At the line-item level, you can add taxes either using multiple tax types or using a single tax code. However, you need to use a common way of applying taxes on all line items. That is, you cannot apply tax types on some line items and tax codes on others.
Charges - You can add charges on invoices at the header level and at the line-item level but you cannot add the same charge type at both the header and line-item level. For example, if you add a shipping charge at the header level, you cannot add any shipping charge at the line-item level.
Withholding taxes - You can add withholding taxes on invoices either at the header level or at the line-item level but not at both. At the line-item level, you can add withholding taxes either using multiple tax types or using a single tax code. However, you need to use a common way of adding withholding taxes on all line items. That is, you cannot add tax types on some line items and tax codes on others.
Discount - You can add a single discount either at the header level or at the line-item level but not at both. The discount amount must be a negative number
For more information on handling taxes, please review the Creating and Managing Invoices and the Invoicing and Payment Process guide.