Beginning users may don’t understand that SAP provides us 2 types of posting vendor invoice.
1. Invoice with Purchase Order (Invoice with PO)
2. Invoice without Purchase Order (Invoice without PO)
What the different for these 2 types?
The name tells itself. Invoice with PO is a process to post vendor invoice after complete Create Purchase Requisition Create Purchase Order Good Receipts/Service Receipts. It’s a common process of procurement to pay scenario. This is usually happen when company has a deal/contract with supplier to buy service/stock/direct material. On the other hand, Invoice without PO is a beginning process to post vendor invoice by not reference any purchase order. It is normally use for low amount of payment such training expense for 1 days or transportation expense.
Vendor Invoice with Purchase Order in SAP
The beginning area may start from procurement team. Procurement team deals with supplier for purchasing air conditioner. Then, Procurement Requisition (PR) will be generated in system. Once Purchase Requisition is approved, Purchase Order will be created by reference from PR. In this step, procurement team may print out purchase order from system and submit to supplier to confirm orders. Supplier will prepare and deliver goods/service within due date. In this step, procurement team will record Goods Receipt/Service Receipts in SAP. System generates Material Document and Financial Document in the same time.
Financial Document
Debit Material/Expense 10,000 USD
Credit GR/IR Clearing 10,000 USD
After Goods Receipts, supplier will submit invoice to financial team. Vendor Invoice with PO will be performed in this step. System generates Material Document and Financial Document as same as previous step.
Financial Document
Debit GR/IR Clearing 10,000 USD
Debit Input Vat 1,000 USD (Optional)
Credit Vendor 11,000 USD
Process of Vendor Invoice without Purchase Order in SAP
There are few differences between vendor invoice with PO and vendor invoice without PO. Normally, vendor invoice without PO is used for the expense which is not the major expense of company such as sponsorship, training course. The difference in term of technical is invoice without PO is able to record expense into system directly, no need to create approve and go through approval flow. There is no material document generated for this process.
Financial Document
Debit Training Expense 50 USD
Credit Vendor 50 USD
Label: Vendor Invoices in SAP