As we know that the Invoice Verification is a sub-component of MM and it has its integration with other sub-component of MM Module such as Purchasing and Inventory Management. Since SAP R/3 is an integrated system and information/Data flows from one application to other. Due to availability of integration utility within MM-FI, Postings are made to G/L accounts automatically in the case of Invoice Verification and Inventory Management transactions relevant to Financial and Cost Accounting.
The following accounts are important for Invoice Verification:
We must maintain a separate account in the sub-ledger for each vendor that all amounts concerning this vendor are posted to. Normally this activity is being carried out by FI consultant. Making a posting to the vendor account is not the same as making a payment; payment is only made when the Financial Accounting department posts the vendor’s payment to a bank account.
Stock Accounts (BSX)
Here we grouped together different materials with similar features are in a common account via valuation class. The account relevant for a material is defined in the material master record when a material is created via valuation class. The system only posts to the stock account when a price difference occurs for an invoice.
GR/IR Clearing Accounts (WRX)
An “intermediate” account between the stock account and the vendor account. At goods receipt, the net invoice amount expected is posted to the stock account. The offsetting entry is posted to the GR/IR clearing account. This posting is then cleared by an offsetting entry on the vendor account at invoice receipt.
Price Differences Accounts (PRD)
Under both the price control (S or V), there may be cases of Price differences while posting invoice, we need to post these differences in appropriate account categorized by SAP as Price Difference Accounts (PRD). Price difference can be posted as gain or losses to the business as a result of a particular transaction.
Cash Discount Clearing Account
As per the business requirement we may need to post an invoice as net, the cash discount amount is taken into account in the invoice, it reduces the value of the items; Hence we need cash discount clearing account to post the offsetting posting entry in SAP R/3. This account is cleared when payment is made to vendor.
Freight Clearing Account (FR1)
If we have made up provision in pricing procedures for freight as a planned delivery cost then we need to debit the respective stock account with the planned delivery costs at the time of goods receipt. At the time of Goods Receipt the system makes the offsetting posting to a freight clearing account. At the time of posting invoice this entry is cleared.
Also See: Material Master Data – Overview
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