This document provides an overview of invoice and credit note processing in SAP Accounts Payable. It discusses the key differences between processing purchase order (PO) related and non-PO related invoices and credit memos. For PO related documents, it describes the 3-way matching process known as logistics invoice verification. It also reviews functions for reversing documents, changing documents, and displaying posted documents.

1. Accounts Payable
Version 1.0
Unit 3: Invoice and Credit Note
Processing

2. Course Agenda
Unit 1: Introduction
Unit 2: Master Data
Unit 3: Invoice and Credit Note Processing
Unit 4: Payments
Unit 5: Inquiries
Unit 6: Reporting
Unit 7: Vendor Reconciliation
Here comes your footer FI: Accounts Payable 2

3. Unit Objectives
At the completion of this unit, you will be able to:
 Understand non-Purchase Order and Purchase Order related
invoice and Credit Memo processing.
 Perform non-Purchase Order related invoice and Credit Memo
processing
 Perform purchase invoice processing through Logistics Invoice
Verification
Here comes your footer FI: Accounts Payable Page 3 3

4. Key Terms
 2 Way- Match Concept
 3 Way-Match Concept
 Logistics Invoice Verification
Here comes your footer FI: Accounts Payable Page 4 4

5. SAP R/3 Process
Represents a process within LIMS
Represents a manual process outside of LIMS
Here comes your footer FI: Accounts Payable Page 5 5

6. In Summary – PO Related Invoices
3 Way Match Concept
Two way match concept
1. Purchase 2. Invoice 3. Approval 4. Payment
Order Receipt obtained
2 FI documents created to record Dr and Cr
entries
Here comes your footer FI: Accounts Payable Page 6 6

7. Non-PO Related Invoices and Credit Memos
 Invoices and Credit Memos not requiring a Purchase Order are
entered directly into SAP through the Accounts Payable
module.
 Approvals:
- Can be approved before they are entered into SAP R/3.
- Can be entered and blocked for payment then trigger non-PO
workflow
 Examples of purchases that do not require a Purchase Order
are:
- Utilities
- Contributions
 Note: See Admin Policy 601
Here comes your footer FI: Accounts Payable Page 7 7

8. SAP Accounts Payable Module Screen –
Non-PO Invoice and Credit Note Processing
Non-PO Invoice
Entry Transactions
Here comes your footer FI: Accounts Payable Page 8 8

9. Non-PO Invoice Entry (FB60)
Note: May need to set
your editing options to
make document type
visible
Net doc type: Invoice amount less the
discount posts to the expense
account
Gross doc type: Full amount posts to
expense account; discount taken
will post to cash discount account
during payment run 9
Here comes your footer FI: Accounts Payable Page 9

10. PO Related Invoices and Credit Memos
 Invoices requiring a purchase order are entered into the
Materials Management module of SAP R/3 through Logistics
Invoice Verification in order to verify them against the Purchase
Order (PO) and the Goods Receipts (GR).
 In SAP R/3, 3-way matching process is known as Invoice
Verification.
 Invoices which fall outside the price/quantity tolerances are
blocked from payment.
10
Here comes your footer FI: Accounts Payable Page 10

11. SAP Accounts Payable Module Screen – PO Invoice and
Credit Note Processing
Invoice Verification
Transactions
11
Here comes your footer FI: Accounts Payable Page 11

12. PO Related Invoice – Displaying PO (ME23N)
PO History tab
allows you to see
any goods
receipts, invoices
posted
12
Here comes your footer FI: Accounts Payable Page 12

13. PO Related Invoice – Entry via LIV (MIRO)
Selecting calculate tax tells the
system to determine amount,
versus you entering it directly
Entry of PO number results in
lines below being populated.
Accounting treatment is derived
from PO.
13
Here comes your footer FI: Accounts Payable Page 13

14. PO Related Invoice – LIV – Details Tab
Freight charges can be
entered via the
Unplanned Delivery Costs If remit-to information is
incorrect, use Inv. Party
to select correct vendor
14
Here comes your footer FI: Accounts Payable Page 14

15. PO Related Invoice – LIV – Payment Tab
Note: remember to check the
payment terms after selecting a new
remit-to vendor, as this may have
changed the terms originally
defaulted form the PO
15
Here comes your footer FI: Accounts Payable Page 15

16. PO Related Invoice – LIV – Simulation
Provides overview of the Acctg doc to be posted
Here comes your footer FI: Accounts Payable 16

17. Logistics Invoice Verification
 Invoice Verification is the process of entering and checking
vendor invoices. The invoices are verified against the Purchase
Order and Goods Receipt or an approval is obtained.
 In SAP R/3, 3-way matching process is known as Invoice
Verification.
 Credit memos with reference to a PO are posted to the MM
module through the invoice verification process also.
 Matching Process:
Vendor Goods
Vendor
Invoice = Purchase = Receipt or
Order Approval
17
Here comes your footer FI: Accounts Payable Page 17

18. Other Accounts Payable Processing Functions
 Reverse a Document
 Display Documents
 Change Documents
18
Here comes your footer FI: Accounts Payable Page 18

19. Transactions for Additional Functionality
Display Change
Transactions
19
Here comes your footer FI: Accounts Payable Page 19

20. Reversing Vendor Invoices
 If documents are entered incorrectly, they can be reversed.
 Reversing open invoices prevents the invoice from any further
processing.
 An invoice may be reversed if the invoice has not been
selected for payment or a check has not been generated
through the payment program.
 The invoice must be reversed through the module in which it
was posted.
- Non-PO Invoices - posted in FI/AP, must be reversed in FI/AP.
- PO Invoices - posted in MM/LIV, must be reversed in MM/LIV.
20
Here comes your footer FI: Accounts Payable Page 20

21. Reversing Documents – Transaction Codes
FI/AP Reversal Transactions MM/LIV Reversal Transactions
Note: Currently auto-clear program
does not work for MR8M
reversals; must clear manually
via F-44
21
Here comes your footer FI: Accounts Payable Page 21

22. Change/Display Documents
 It is possible to change certain fields on a posted invoice or
credit note
- Reference field
- Payment Terms
- Text fields
 Similar to reversing a document, an invoice posted in FI/AP is
changed in the FI/AP module and an invoice posted in MM/LIV
is changed in MM /LIV.
22
Here comes your footer FI: Accounts Payable Page 22

23. Display Documents Posted
 It is possible to display a list of transactions for a particular
user, date range, and/or doc type.
 Transaction FB03 (select list will bring up this screen):
Possible
Selection
Screen
23
Here comes your footer FI: Accounts Payable Page 23

24. Questions and Answers
24
Here comes your footer FI: Accounts Payable Page 24