In today's blog post I will show the necessary SAP® data and analysis steps to compare the purchase order value with the total invoice receipt amount.
Usually the invoice receipt amount should match the purchase order amount –or at least, those amounts should not differ too much. For example, if one laptop has been ordered with a net value of 1,000.00 €, an invoice with an amount of 1,000.00 € is expected accordingly (if the same article which has been ordered got delivered).
However, there may be reasons for discrepancies: There could be unplanned additional delivery costs which have not been entered when the PO was created, but now are stated on the vendors’ invoice. Another reason may be the simple fact that the invoice has been entered incorrectly when booking the invoice receipt (a typo for example) or the vendor created the invoice wrongly.
In SAP®, tolerance limits on PO line item level can be set up (percentages for example which will be accepted by the system automatically). However, if those limits are exceeded, they sometimes can just be accepted by the users if he is able to override them, or even the “unlimited overdelivery” flag could be in place.
Because of such scenarios it can be very interesting to compare the total invoice receipt value with the original purchase order value, like shown in this blog post.
In the same way you could include the goods receipts values to compare all three process steps in one single table.
A very quick but important analysis to identify too high invoice receipts from vendors. The main trick is to consider the fact of multiple invoice receipts (including credit notes or reversed invoices, which have to be deducted). A final tip - not only for this analysis - keep the currency of the amounts in mind, and be careful not to compare values of different currencies without adjusting them first.
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