3 way match of invoice in SAP for legacy PO
My client is using legacy system for purchasing direct materials. SAP FI has been implemented. Customer like to carryout indirect purchasing (consumables - text purchase & MRO items) directly in SAP and hence we are configuring minimum org structure. When we suggested about 3 way match of invoices to customer for indirect purchases, customer expressed interest to carryout 3 way match for direct purchases as well in SAP. Please note that direct materials are procured in legacy system.
Customer query : Is it possible to carry out 3 way matching of invoices in SAP without material master & inventory management for direct purchases happening in legacy system. If so, please explain the solution and its pros and cons. Please share your experiences and lessons learned on similar requirement.. Also suggest alternate solutions..... Thanks for your time and help.
a three way match is matching quantity and price from purchase order, goods receipt and invoice receipt .
If all documents are done in SAP, then SAP will do this match when you enter the invoice
But if you procure in a external system and use only SAP-FI to post and pay invoices, then you cannot have a automatic 3way match. In that case the 3way match must be done manually by the accountant.
Similar Messages
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Three way match for Service PO
Is it possible to do 3-way match on Invoices for Service PO.
I am able to do 3 way match on Invoice for goods PO, but when I create Invoice for Service PO it does not check the Service confirmation.
Example for Service PO of 100$ when Service confirmation is done for 40$, I am able to process Invoice in R/3 for 100$ instead of 40$ for which confirmation has been done.
I am SRM 4.00 ECC 5.0 with ECS.
Thanks
VenkateshHi Venkatesh,
We are also having a similar requirement. We need 3 way match for service PO's in R/3 in Extended Classic scenario.
I have couple of questions for you
1. Are you able to trigger service entry sheet in SAP backend from the Service confirmation in SRM?Is this happening in standard automatically when you create and save the confirmation?
2. When the service entry sheet is created in backend (replicated from SRM), does the GR also get created automatically?
3. Were you able to fix your issue with 3 way match and able to do ERS for Service PO's?
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Srivatsan -
Two Way or Three way matching invoice
Hi Gurus,
Can you please tell me what does two way, three way invoice matching mean???
What is the use and impact of two way or three way invoce matching concept??
Thank YouTwo way matching is
Invoice quantities and values for a supplier matched against the original purchase order quantity and values for the same supplier
Usually used for consumable purchasing
Three way matching is
Invoice quantities and values for a supplier matched against the original purchase order quantity and values for the supplier against a goods receipt posting made by your company
Usually used for stock purchasing -
3 way match between PO/GR/IR per line item
Hi..
I'm having an issue with 3 way match between PO/GR/IR. I want to this on line item level. As standard, SAP will compare line items based on line item numbers when doing the match (at least for quantity match). However, this is not possible since the vendors don't always use the line items in the PO (send to them) to create the invoice. And sometimes they simply leave out the line item number. However, the material number is always on the PO, GR and IR. Is it possible to do the 3 way match per line item using the material number as the unique identifier?
Kind regards
hundvovhi
Three Way Match
Yes, Three Way Match Means PO -> GR -> IV
For this, You need to Put Tick mark against GR Based IR in Purchase Order Item Detail Invoice Tab and Vendor Master Purchasing Tab.
Once This Purchase Order is Saved. You cannot do / System will not allow you IR Until you make Goods Receipt for the Purchase Order.
The same applies to External Services.
http://sap.ittoolbox.com/groups/technical-functional/sap-log-mm/sap-3-way-match-configuration-1639406
http://sap.ittoolbox.com/groups/technical-functional/sap-log-mm/3-way-invoice-match-1381773
regrds
kunal -
Three way match inter company Stock transfer orders
Hello All ,
For Inter company Stock transfer orders our client for is planning to copy the net value from the billing document to Invoice receipt and Good receipt. Having that said , the PO price will be different from good receipt and invoice receipt. What will it be having the effect on Three way match.
Thanks in advanceThanks for the input . I have one more quick question
At my client PO condition Type is ZSTO and Billing Condition type is ZV01 , both value are maintained in table.
One process they want to check where ZSTO is not equal to ZV01 as per example below.
1 .P O Price based on ZSTO = 450
2. Good Issue (based on material standard xyz)
3. Billing document based on ZV01 = 350
4. Invoice receipt ?
5. Good receipt ?
Can you please let me know what would be the IR Price and GR price and if the IR and GR value is 350 will it effect 3 way match .
Thanks in Advance -
Is it mandatory to perform PO receiving for a 2 way matching Invoices in 12.0.6?
Requirement :
Supplier would send everyday some files with respect to the quantity delivered..This delivery would be ad hc and without against any PO#...Invoicing needs to go via a PO.
Solution porposed :
a) Create a Inventory Org for that specific vendor
b) Create Misc receipts for the items sent based on the file received
c) Create a 2 way match PO
b) Create an Invoice and pay the vendor.
Let me know if you see any loopholes with this solution.
Thanks in advance!2 way matching in any version is between Qty Ord and Qty Billd.
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How to maintain a check for 3 way match(PO, GR, Invoice) in SRM
How to maintain/configure a check for 3 way match(PO, GR, Invoice) in SRM
Hi Sam,
Please use a Limit cart and select the radiobutton "Confirmation and Invoice" which will need a GR/Confirmation before Invoice on a PO.
Please reward points if the hint is helpful.
Thanks & Regards,
Venkat -
Does SAP system provide 3 way matching report from PO up to payment in AP
Dear expert,
Would like to seek for your help to advise, does SAP system provide 3 way matching report from PO up to payment in AP with the following information?
Vendor Number
Vendor Name
AP Document Number
AP Document Date
Payment Document Number
Payment Document Date
Payment Amount
PO reference Number and Date
Item Description
Please help.
Regards,
KHHi Atif,
Thank you for the prompt reply, however I have a few question to seek for your advise as below:
a)I would like to know does SAP system have any standard report which have the information of 3 way matching report from PO up to payment in AP module?
b) I have find one report using T-code:FBl1N (vendor line item) is able to display the report with information of invoice,payment and there is one field purchasing document in the report however this field do not have any po number refer to the invoice.
I would like to know what the field purchasing document mean for (i.e what are the information capture on the column purchasing document)?
Please help.
Regards,
KH -
Question for GR IR functionality - audit requirement (three-way) match
Hello,
I have a question in regards to three way match functionality in SAP (matching of PO, GR and IR). Auditors asked us if GR-IV indicator is checked for every PO, and for our company this indicator cannot be checked for every PO due to drop shipments, LC terms, etc. However, AP is ensuring that GR document is posted prior to posting IR for all POs. In this case, even though GR-IV indicator is not checked at PO item level, does SAP enforce automatic three way matching based on the tolerance key set (DQ and PP), or does SAP not perform three way match since the GR-IV indicator was not set in the first place?
Please share some insight. Thank you.Hi,
As you know three ways match related to PO-GR-IV but in your case you want pay drop shipments and LC terms to vendor where you need two way match which is with PO-IV. The disadvantage in two way match, you never know whether the whole PO amount is delivered or not in your system (in real scenario). For two way match, select those vendors in t.code:XK02 and do not select check box of “GR-Based Inv. Verif.” in Control data segment in Purchasing data view & then save.
Now create a new PO and go for directly invoice verification WRT new PO.
For more refer threeway match details
SAP Threeway Match Functionality & configuration
Regards,
Biju K -
2 Way Match - PO and Invoice (no goods receipt)
Dear Gurus,
We need to Implement the 2 Way Match process between the Invoice and the PO i.e. perform the Match once invoice has been recorded. The condition is invoice value should be less than $500. This means supplier will be paid irrespective of a goods receipt for a PO line. The goods receipt can happen later to close a PO line.
Please see below examples which will fall under this criteria.
PO # A
Line # 1 - Qty = 10 - PO unit Price = 100 - PO Total = 1000
Inv Qty = 4 - Inv line Total = 400 - Inv Grand total = 400
PO # B
Line # 1 - Qty = 5 - PO unit Price = 80 - PO Total = 400
Inv Qty = 5 - Inv line Total = 400 - Inv Grand total = 400
PO # 3
Line # 1 - Qty = 5 - PO unit Price = 100 - PO Total = 500
Line # 2 - Qty = 10 - PO unit Price = 10 - PO Total = 1000
PO total = 1500
Invoice Line # 1 - Inv Qty = 5 - Inv line Total = 400 - Inv Grand total = 400
Can these be achived by some setups?
Is there a way by which we can achieve this?
Thanks for your response in advance.Hi Venkat,
Thanks for the swift response.
In fact we will be doing GR but at a later date. The object is to not held the vendor invoice and payment (esp. for small amt) just bcoz goods reception not done. Understand your concern that GR/IR might cause an issue. -
Quantity variance in Invoice Vs. Three way match in PO
Hi Experts,
I am not able to find any differrence between quantity variance Vs. Three way match in PO.
For example in our purchase orders for all the items we are having Two way match (PO-Inv, GR-Bsd Inv is not checked) but we have defined quantity varaince in Invoice. So when we are trying to post invoice for purchase order item for which goods reciept is not performed, system is blocking the invoice due to quantity variance.
So i think if you have quantity variance at invoice level then system is going to check whether goods reciept is perfromed or not regardless of Two way or three way match.
Please advise if my understanding above is correct.
My second question is as we can define two way/three way match at various level (Supplier, Inforecord etc.). Is there anyway that i can define that quantity variance in Invoice should be for certain material groups only.
Please advise.
Regards,
Kamalhi,
when you set the qty variance, and try to post the invoice just after the PO, the system will show a message at IR ie. " Quantity delivered is Zero"...
this message is warning message...
The system will block the invoice item when the doc is posted, depending on how the tolerance key DW is set(Qty variance to Gr qty = zero)...
Hope it helps..
Regards
Priyanka.P -
Legacy Trial Balance - best way to get totals into SAP
Hi Folks,
I have a query relating to the data migration of Finance items.
What is the best process for updating the new SAP system with the legacy trial balance?
Do you journal in the Opening Trial Balance posting sub ledger items to a Data Load account?
Load the AR / AP sub ledger items via the standard load routine RFBIBL00 which will in the case of customers Debit the customer account and Credit the Data Load Account / Vendors Credit the Vendor and Debit the Data Load Account.
Could anyone please give me a step by step guide as to how to go about this?
ThanksHi,
The upload of GL Balances have to split into several steps:
1. Normal GL Accounts: In this case line items are not required and totals are to be updated in SAP. This can be done using GL fast entry if the number is not too high.
2. Open Item Managed GL Accounts: All the open line items are required to be uploaded in SAP from Legacy in order to clear them. Hence, a LSMW / BDC program has to be developed to upload the line items.
3. Customer & Vendor Open Items: All open line items in Customer and Vendor Accounts have to be brought in into SAP. For this also a LSMW / BDC program needs to be developed and upload the line items.
4. Asset Accounting: In case asset accounting is implemented the individual balances of each asset (Gross Value and Accumulated Depreciation) have to be uploaded using transaction AS91. For this also you need to develop a LSMW / BDC program. Further, you also need to update the GL Accounts related to Asset Accounts with totals for each asset class T.Code OASV.
5. Further, material values are also to be updated - Material wise and this should tie with the GL Balance.
In addition, one more point to be noted is the use of Dummy / Conversion accounts for bringing in data from legacy to SAP. It is better to create five or six conversion accounts like for Assets, Liabilities, Revenue, Expenses, Materials etc. The sum of all these conversion accounts should be ZERO after completing the conversion. This way the reconciliation will become easy.
Thanks
Murali. -
3-Way Match with Multiple Invoices
This may be a basic Oracle iProcurement functionality question, but i have been unable to get a good answer. Any information will be greatly appreciated.
I am currently using Oracle 11i iProcurement.
The problem I am having is I am unable to perform a 3-way Match in the system on purchase orders that will use multiple invoices. Our vendors require a tiered payment structure (i.e. 50% due up front before shipment, 30% due when item has reached shipment destination, and 10% due after our engineers have inspected the shipment).
We have been currently using a 2-way match for all of our purchase orders because when we apply the first invoice against the PO (50%), the PO will automatically close before we can receipt the goods against the purchase order.
Our Invoice Receipt Close % Tolerance and Invoice Close % Tolerance are set at 0%.
Our goal is to receipt the first 50% against the purchase order, have the PO remain open, and receipt the goods in Oracle after the 2nd or 3rd invoice application against the PO.
Thanks in advance.
Edited by: user13053863 on Apr 28, 2010 2:44 PMHmm, an interesting situation. What are the quantities on your purchase orders? Are they almost always a quantity of 1? Payables should only close a purchase order when quantity billed and quantity received is GT or equal to the quantity ordered. So if you order a quantity of 10, you could match for quantity 5 on the first invoice, quantity 3 for the second invoice, and quantity 2 for the final invoice. But since you don't receive the quantity until the 3rd invoice, you cannot match on receipts, so that would be a problem.
Maybe you need to approach this from a different angle? Maybe you should look at the prepayments ability in Payables. Typically Prepayments will be charged to a Prepayment Account (asset). Say you have a purchase order for $10,000. You prepay $5,000 up front, so basically Debit Prepayment 5,000 and Credit Cash 5,000. Same for the next prepayment level - $3,000. Then you get the ordered material received. So you want to do an invoice for $10,000. Match the invoice to the purchase order. Apply the prepayments to the purchase order. Thus you get an entry something like Debit Inventory $10,000, Credit Prepayments $8,000, and Credit Cash $2,000.
From an accounting perspecitive, you don't show the prepayments in inventory until received, but do show a prepayment asset. Which is reflecting what you really are doing I think.
I have never worked for anyone who has had to do prepayments, but this is an area that you may wish to investigate as a possible solution for your situation. Good luck.
John Dickey -
MRBR not releasing invoice despite 3-way match
I have a PO with quantity 100. Then a GR was posted for quantity of 50. Then an invoice was posted for quantity 100. Invoice was blocked due to quantity variance beyond tolerance. Now another GR was posted with quantity 50. Now there is a 3-way match, I ran MRBR for the original invoice and selected auto release option. System is not releasing the block.
Anybody has any thoughts?Check whether there are any payment runs/proposals that are already created for this vendors.
Also try to go to the accounting documents/invoices ( FB03) and try to remove the posting blocks manually over there.
Hope that helps..
Thanks,
Nandita -
Query of 3 Way match ( Invoice-Receipt)
Hi All,
Can Someone please give me Matching Invoice Query (AP) / Steps for 3-way matching. I have requirement wherein I have to match Invoice with Receipt but I don't know how should i do that through coding or required steps.
As I know I know below conditions are required for 3 way match but dont know how should I get all these individual data from AP tables.
Invoice price <= Purchase order price
Quantity billed <= Quantity Ordered
Quantity billed <= Quantity received
Can you please help me to get this information.
Thanks.I have prepared queries based on d 3-way match functionality .. Can some one please verify this, if I am missing anything here -
-- Invoice price <= Purchase order price
SELECT sum((NVL(poll.quantity, 0) - NVL(poll.quantity_cancelled, 0)) *
NVL(pol.unit_price, 0)) "PO PRICE",
sum(apd.quantity_invoiced * apd.unit_price) "INVOICE PRICE"
FROM po_headers_all poh,
po_lines_all pol,
po_line_locations_all poll,
po_distributions_all pd,
ap_invoice_distributions_all apd
WHERE poh.po_header_id = pol.po_header_id AND
pol.po_line_id = poll.po_line_id AND
poll.po_header_id = pol.po_header_id AND
poh.authorization_status = 'APPROVED' AND
poh.type_lookup_code = 'STANDARD' AND
NVL(poh.cancel_flag, 'N') = 'N' AND POL.ITEM_ID IS NOT NULL AND
apd.unit_price < pol.unit_price AND
-- AND NVL (poll.quantity, 0) > (NVL (poll.Quantity_received,0) + NVL (poll.Quantity_cancelled,0))
poll.inspection_required_flag = 'N' AND
poll.receipt_required_flag = 'Y' and
pd.po_header_id = poh.po_header_id(+) AND
poll.po_header_id = pd.po_header_id AND
pd.po_line_id = pol.po_line_id AND
pd.line_location_id = poll.line_location_id AND
apd.po_distribution_id = pd.po_distribution_id AND
POH.po_header_id = ? AND apd.po_distribution_id is not null
-- Quantity billed <= Quantity Ordered
SELECT sum(pd.quantity_ordered) "Quantity Ordered",
sum(pd.quantity_billed) "Quantity Billed"
--sum(apd.quantity_invoiced) "Quantity billed"
FROM po_headers_all poh,
po_lines_all pol,
po_line_locations_all poll,
po_distributions_all pd,
ap_invoice_distributions_all apd
WHERE poh.po_header_id = pol.po_header_id AND
pol.po_line_id = poll.po_line_id AND
poll.po_header_id = pol.po_header_id AND
poh.authorization_status = 'APPROVED' AND
poh.type_lookup_code = 'STANDARD' AND
NVL(poh.cancel_flag, 'N') = 'N' AND POL.ITEM_ID IS NOT NULL AND
apd.unit_price < pol.unit_price
-- AND NVL (poll.quantity, 0) > (NVL (poll.Quantity_received,0) + NVL (poll.Quantity_cancelled,0))
and POH.po_header_id = ? and poll.inspection_required_flag = 'N' AND
poll.receipt_required_flag = 'Y' and
pd.po_header_id = poh.po_header_id(+) AND
poll.po_header_id = pd.po_header_id AND
pd.po_line_id = pol.po_line_id AND
pd.line_location_id = poll.line_location_id and
apd.po_distribution_id = pd.po_distribution_id and
apd.po_distribution_id is not null
--Quantity billed <= Quantity received
SELECT sum(rsl.QUANTITY_RECEIVED) "Quantity received"
from rcv_transactions rct,
rcv_shipment_headers rsh,
rcv_shipment_lines rsl,
po_lines pol,
po_line_locations pll
where rct.po_line_location_id = pll.line_location_id and
rct.po_line_id = pol.po_line_id and
nvl(pol.order_type_lookup_code, 'QUANTITY') NOT IN
('RATE', 'FIXED PRICE') and
rct.shipment_line_id = rsl.shipment_line_id and
rsl.shipment_header_id = rsh.shipment_header_id and
transaction_type = 'RECEIVE' and pol.po_header_id = ?
order by rct.transaction_id
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