Purchase Order Cycle in SAP

Logistics Invoice Verification

-Logistics invoice Verification is part of Material Management

-It checks Vendor incoming Invoices for accuracy(Content, Price, Accuracy)
-Post Vendor invoice
-It Creates MM and FI Invoice Document.
-Post Invoice WRT purchase Order, Goods Receipt or service.

Different ways to Post Invoice

-Manual Entry -Vendor Sends Courier by invoice or with Material. Company employee enter and post
the invoice
-Automatic Posting - invoices are transferred electronically in IDOC format via EDI
-Settlement Programs - Evaluated Receipt & Consignment Settlement
-Enterprise Buyer - Is a component in mySAP SRM solution, Once can enter invoice and transmit to
System

Effects of Invoice Posting

System creates MM and FI documents

System Update PO history
System Posts the Amounts to Appropriate books of accounts--After Goods Receipt , system debits
stock account and post offsetting entry to GR/IR clearing account.
After invoice posting GR/IR account gets cleared and vendor account credited.

In case of a material which has a MAP then the Stock account is posted with a value of net order
price multiply by quantity of materiel actually received. In this case system posts the difference to the
account of the expense or revenue from the price difference. And this Standard Price are Moving
average Price we can maintain at the creation of Material Master in Accounting 1 View.