Explain ‘Invoice Verification’ (IV) in SAP?

Answer

Invoice Verification’ involves:

1. Validating the accuracy of the invoices (quantity, value, etc.).

2. Checking for ‘blocked’ invoices (which vary to a great extent from that of the PO).

3. Matching of invoices received from vendors with that of the Purchase Order/ Goods

Receipt. At this point in time, the PO History is updated for the corresponding PO Line

Item(s) of the matched invoice.

4. Passing of matched invoices to the FI module. The system posts the following entries:

Debit: GR/IR Clearing Account

Credit: Vendor a/c (Accounts Payable open line item)

Credit: GL Reconciliation Account

The different scenarios in invoice verification include:

4. GR-based Invoice Verification indicator is not set in the PO detail screen:

Although this setting enables you to post the invoice referenced to a PO prior to

making a GR, the system will block the invoice for payment (this kind of posting

results in a Quantity Variance as there has not been a GR).

5. GR-based Invoice Verification indicator is set in the PO detail screen: When the

PO number is referenced the system brings up all the unmatched items of GR in

the selection screen. You will not be able to post the invoice for its full value, unless]

the PO has been fully received.

Please click on the question to find the answer

1. Explain the ‘Account Payables’ Sub module?

2. What Documents Result from ‘Procurement Processes’?

3. Describe a Purchase Cycle?

4.What is a ‘Purchase Requisition’ (PR)?
 5.What is a ‘Request for Quotation’ (RFQ)?

6.What is an ‘Outline Agreement’?

7.What is a ‘Contract’?

8.What is a ‘Release Order’?

9.What isa ‘Scheduling Agreement’?

10.  What is a ‘Quotation?

11.  What is a ‘Purchase Order’ (PO)?

12.What is a ‘PO History’?

13.  Will the FI Document be Created with the Purchase Order (PO)?

14.  Explain FI-MM Integration ?

15.  What Happens, in SAP, when You Post a ‘Goods Receipt’?

17.  How do You Deal with ‘Tax’ when You Post an Invoice?

18.What ‘Variances’ do You come Across in Invoice Verification?

19.  Outline ‘Vendor Payments’ in the SAP System?

20.  Explain ‘Automatic Payment Program?

21.  Explain ‘Automatic Payment Program’ Configuration?

22.  How do You Execute an ‘Automatic Payment Program’?

23.Can You Pay a Vendor in a Currency Other than the Invoice Currency?

24.  What is a ‘Payment Block’?

25.  How do You Release ‘Blocked Invoices for Payments’?

26.  What is the ‘Account Assignment Category’?

27.  What is a ‘Credit Memo’?

28.  What are ‘Special GL Transactions’?

29.Differentiate ‘Free Offsetting Entry’ from a ‘Statistical Posting?

30.  What is a ‘Noted Item’?

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