INVOICE

VARIANCE
IN SAP

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 INVOICE VARIANCE
 When we enter invoice the system proposes the value comes from

purchasing document
 If the value varies from system default price,qty value we have to identify
the reason why price value change
 If variance (actual amount-entered amount) is small , it is not worth
performing extensive research for this reason we set tolerance limit for each
variance
In customizing logistic invoice verification we set tolerance
Quantity variance : - DQ
Price variance :-PP
Po price quantity variance : BR/BW
Date variance : ST
 If invoice value exceed the limit , system automatically block the invoice
We have to release the invoice after finding valid reason MRBR
 Also there are many way to adjust the variance we can see in below
document

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 PRICE VARIANCE
BUSINESS SCENARIO
 Suppose plant A release a purchase order of 40atnos 200 for vendor A.
 Vendor send 40 nos to plant A.
 But vendor mistake he sends invoice of 8900 instead of 8000 we entered
invoice in system
 System check price values with PO and GR
 If not match system check for tolerance, if not in limit system block the
payment
 To solve the block payment we have check valid reason
 If we get valid reason from purchasing team,vendor we have to release
invoice manuallyor we can manually reduce the invoice

ACCOUNTING ENTRIES

GOOD RECEIPTINVOICE
STOCK ACCOUNT8000+900-

GR/IR ACCOUNT8000-8000+

VENDOR 8900-

STEP 1 : SET TOLERANCE LIMIT (TOLERANCE KEY PP)

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 PRICE VARIANCE
BUSINESS SCENARIO
Suppose plant A release a purchase order of 40 nos at 200 for vendor A.
Vendor send 40 nos to plant A.
But vendor mistake he sends invoice of 8900 instead of 8000 we entered
invoice in system

System check price values with PO and GR
If not match system check for tolerance, if not in limit system block the
payment
To solve the block payment we have check valid reason
If we get valid reason from purchasing team,vendor we have to release
invoice manually or we can manually reduce the invoice

ACCOUNTING ENTRIES

GOOD RECEIPT INVOICE

STOCK ACCOUNT8000+900- GR/IR
ACCOUNT8000-8000+ VENDOR 8900-

STEP 1 : SET TOLERANCE LIMIT (TOLERANCE KEY PP)

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STEP 2 : CREATE PURCHASE ORDER

STEP 3 : GOOD RECEIPT

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STEP 4 : INVOICE

Material is blocked for payment to release invoice

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We negotiate with vendor find reason why price diffreence happened after
negotiate if we found valid reason we can release the invoice by tcode MRBR
Also by partial reduction we can post invoice without blocking which means
reducing the part of the invoice that you are not accepted
Credit memo generated for extra price

STEP 5 : INVOICE RELEASE

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 QUANTITY VARIANCE
BUSINESS SCENARIO
 Suppose plant a release a purchase order of 200 nos for vendor
 A. Vendor send 150 nos to plant A.
 But vendor mistake he sends invoice of 180 nos we entered
invoice in system

System check Qty values with PO and GR
 If not match system check for tolerance, if not in limit system
block the payment
To solve the block payment we have to do additional GR of 30
 nos
For this type of scenario price varience concept is used

ACCOUNTING ENTRIES

 GOOD RECEIPTINVOICE GR 2
STOCK ACCOUNT1500+ 300+
GR/IR ACCOUNT1500-1800+
300-
VENDOR 1800-

STEP 1 : SET TOLERANCE LIMIT (TOLERANCE KEY PP)

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STEP 2 : CREATE PURCHASE ORDER

STEP 3 : CREATE GOOD RECEIPT

I have created po 200 nos

Vendor send me 150 nos
But vendor send me 180 nos invoice system will show error

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STEP 4 : CREATE INVOICE

STEP 5 : CREATE GOOD RECEIPT

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STEP 6 : INVOICE BLOCK CHECK

Quantity varience can be adjusted by reduction of invoice

We have to overwrite the qty value with actual invoice price
In accounting entries credit memo will be generated

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 PRICE & QUANTITY VARIANCE
BUSINESS SCENARIO
 Suppose plant a release a purchase order of 5 nos 500 kg ( 50 rs per
kg)for vendor A.
 Vendor send 5 nos to plant A but weight is exceed than required
value
Due to weight changes price is also change when we enter invoice in
 system System block the invoice for payment
We can relase the invoice manually or we can partal reduce the
 invoice
value
ACCOUNTING ENTRIES

GOOD RECEIPTINVOICE
STOCK ACCOUNT2500+200+

GR/IR ACCOUNT2500-2500+

VENDOR 2700-
STEP 1 : SET TOLE RANCE LIMIT (TOLERANCE KEY PP)

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STEP 2 : CREATE PURCHASE ORDER

STEP 3 : CREATE GOOD RECEIPT

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STEP 4 : CREATE INVOICE

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STEP 5 : RELEASE BLOCKED INVOICE

If we didn’t get correct reason to release the invoice we can

overwrite our required value to post invoice without blockthe
by reducing forinvoice
payment

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 DATE VARIANCE

 We have to set tolerance key ST where we maintain value

 For each item system perform the following function
 Amount*(planned delivery date-Invoice Delivery date)
 The system compares the result with absolute upper limit that you define

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THANK YOU

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