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116 CHAPTER 4 The Procurement Process

Tasks
To complete this step, the user will provide the data from the invoice (ven-
dor, date, and amount) and the purchase order number. The system will then
retrieve all the needed data from the purchase order (vendor, materials,
quantities, and price). It will also retrieve the goods receipt data for the pur-
chase order. The user will verify that the data are correct and, if they are, will
approve the invoice. Occasionally, there will be discrepancies among the three
sets of data. For example, the quantity delivered or price may vary somewhat.
Whether these discrepancies are acceptable will depend on the organization’s
purchasing and accounting policies, which are specifi ed in the material master
or other master data in the form of over- and under-tolerances. If the discrep-
ancies are within tolerances, then the invoice is approved for payment. If not,
then the invoice will be blocked, and further action from the accounting or
purchasing department will be required before it can be released.

Outcomes
As you can see in Figure 4-28, invoice verifi cation has an impact on the gen-
eral ledger. The fi gure illustrates the data for our example. Specifi cally, a
debit of $7,500 is posted to the GR/IR account, and the vendor account is
credited by the same amount. Because the vendor account is a subledger
account, an automatic credit posting is also made to the corresponding rec-
onciliation account in the general ledger—the accounts payable reconcilia-
tion account. A corresponding fi nancial accounting document is created. In
addition, an invoice document is created.

Figure 4-28: Financial impact of invoice verifi cation

The purchase order history is also updated, and a link to the invoice
document is added. Finally, if the invoice price is different from the price

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