SAP FI FAQs – Invoice Verification

1.    Invoice verification provides a link between which modules?

Invoice verification provides a link between Materials Management and the Financial Accounting, Controlling and Asset Accounting modules.

2.    What are the two ways to enter taxes on invoices?

(a)    Manually enter it in the Tax field
(b)    Leave the Tax Amount field blank and turn on the Calculate Tax indicator to have the system calculate the tax based on the Tax Code.

3.    When a Vendor invoice is posted in the system, what 5 things happen?

•    An Invoice Receipt document is created
•    The Material Master record is updated when appropriate.
•    The Purchase Order History is updated when appropriate.
•    Entries are posted to the appropriate General Ledger Accounts
•    The Vendor account (Sub-ledger) is updated.

4.    When the Vendor Invoice is posted which accounts are effected?

A debit is posted to the GR/IR Clearing Account and a credit is posted to the Vendor Account.  At the same time, a credit is posted to the appropriate General Ledger Reconciliation Account (i.e., A/P account) assigned to the Vendor.

5.    What are the four types of variances in Invoice Verification?

•    Quantity Variance
•    Price Variance
•    Order Price Quantity Variance
•    Schedule Variance

6.    What are subsequent debit/credit memos?

Subsequent debit/credit memos are used to process additional invoices or credit memo(s) received from a vendor after the (Purchase Order) transaction has been settled (paid).