The company needs to pay its invoices in order to function properly. It also needs to record vendor invoices and payments in the accounting books and registers. SAP is a help here. Accounts Payable is an important part of SAP Finance.
Let’s look at the process of posting the invoice into SAP Finance. What are the options SAP gives you?
The most obvious way to post an invoice in SAP Finance is to do this manually. This is possibly the simplest way to process invoices. It works almost “out of the box” and requires minimal configuration. There is a range of transaction codes available, depending on the user preferences and company processes. Just a few of them:
If your company uses Purchase order processing, then you may process the invoice against the previously raised Purchase order. It may require PO to be approved and or goods or services to be accepted. It depends on the processes of your company. The whole process of invoice entry through the Purchase order in SAP is called “Logistics Invoice Verification”.
There are 2 transactions you should remember in that area:
IDOC, or intermediate document, is another method to enter vendor invoices into SAP. Of course, vendor invoice process is not the only application of this powerful tool called IDOC. SAP Expert has already mentioned another reason to employ IDOCs.
If you want to go this IDOC route, you need to think about the sources of your data. Several options are available here.
In the case of IDOCs, you have two flavours of the process. They correspond to two types of invoice processing mentioned earlier: Finance and Logistics. Depending on your processes, your IDOC message type can be either FIDCCP02 or INVOIC02.
There are several vendor invoice management (VIM) solutions available on the market. Just to name a couple, Readsoft and Esker.
These VIM solutions vary in the functionality they provide, but just to name a few cornerstones in AP invoice processing:
Similar to IDOCs, these solutions support both Finance and Logistics ways to process invoices.
With this variety of ways to process invoices, it is no wonder that many companies use a combination of them in their systems. Which ones are in use in your SAP implementation?