Configuring Improper Invoice Processing 

Use

To prepare the system for improper invoicing, complete the work described below.

Prerequisites

You have:

·        Configured and activated the Prompt Payment Act feature in your SAP system

·        Defined the document types you require in Materials Management (MM) and/or Financials (FI)

Procedure

Proceed as follows:

...

       1.      In the Prompt Payment Act (PPA) part of the Implementation Guide (IMG), choose Improper Invoices  ®Maintain Reason Codes for Improper Invoices.

The Display View “Required Information for Invoice”: Overview screen appears.

       2.      Make the following entries:

¡        Document type

¡        Two character identifier for the reason(s) you want to create

¡        Descriptive text of up to 50 characters for each new reason

       3.      Save your entries.

       4.      You now need to specify the number of days within which a newly received invoice must be notified to the vendor as defective. To do this, stay in the PPA part of the IMG and choose Assign Payment Term to Material Group.

       5.      For the material group in question, enter the relevant number of notification days.

Failure to observe this number means that the actual number of days taken to notify a vendor is deducted from the number of days calculated using the PPA until payment is due.

For example, you specify five days in the notification period and the PPA calculation means that payment is due in 26 days. However, you take seven days to notify the vendor that the invoice is defective. The two additional days are deducted from the 26 day due period, meaning that payment is due within 24 days of the baseline date.

       6.      Save your entries.

Result

Customizing is complete. You can now process improper invoices in the SAP System.