SAP ERP

Procurement -- Invoice Management

The following business goals and objectives can be achieved through the implementation of these processes:

Reducing Operating Costs & Increasing Efficiency

•   Reduce administration, improve business processes

The logistics invoice verification checks incoming invoices for correctness in terms of their content, prices, and arithmetic, thus defining the basis for the payment run. The price and conditions are compared to the conditions in the purchase order, or the invoiced quantity is compared to the received quantity. If differences exceed customized limits, the invoice is blocked for payment automatically. Tax calculation and settlement of delivery costs are also integrated. You can park invoices if you want to involve several persons or departments in the invoice verification process. Workflow features help to control this process.

Invoices that have been blocked can be released for payment using a monitor function. The automated release of invoices for which the blocking reasons have been clarified is also possible. Workflow features support the release process.

ERS is a procedure for generating and settling invoices automatically. Using Evaluated Receipt Settlement (ERS) means that you have an agreement with your suppliers that they do not create invoices for ordering transactions, but you post them yourself based on the information contained in purchase orders, goods receipt and service entry documents.Thus, ERS has the following advantages:

• Purchasing transactions are closed more quickly.
• Communication errors are avoided.
• There are no price and quantity variances in Invoice Verification.

The invoicing plan is a utility allowing you to specify when and for which amount you wish to create invoices. The creation of the invoice is independent of the receipt of the goods or the service (service entry).

In agreement with your vendor, you can have invoices created automatically on the basis of invoicing plan data and initiate their payment. In this case, the system employs the Evaluated Receipt Settlement (ERS) process.

Configuration Variants

SAP Invoice Management by Open Text is an application integrated in SAP ERP application and and the SAP NetWeaver technology platform to streamline Accounts Payable (AP) operations. It optimizes and simplifies the process of creating, managing, monitoring and routing purchase orders and invoices for AP personnel and vendors. Invoices are processed more efficiently and quickly; problem invoices are automatically routed for problem resolution, approval and payment.

To further strengthen procurement of unplanned services a direct reference in Invoice to contract and limit Purchase order will be enabled for correct invoice verification. This will drive compliance for unplanned services and increase transparency of contract usage, which would lead to better prices in the future.

Invoice with Contract Reference; in this scenario the ERP invoice is directly created with reference to a (central) contract. The selection of services or materials happens only during creation of the invoice because there is no other preceding document involved.

Limit PO and Invoice with Contract Reference; the process starts with a limit PO which contains a reference to a (central) contract. Again the actual services or consumption materials are specified during invoice creation.

Independent Limit PO and Invoice with Contract Reference; as a variant of the process described above the limit PO does not necessarily have to have a relationship to the contract. Assignment to limit PO and to the contract finally takes places during invoice creation.

Invoice with Contract Reference Based on SUS Purchase Order; the scenario involves a SUS for processing the limit PO and the service entry sheet. The products of the central contract was which created in advance were transferred to the MDM catalog. The products in the catalog still have a reference to the original contract.