Function documentationPurchase Orders Relevant to Differential Invoicing

 

The differential invoicing process mainly takes place in Logistics Invoice Verification. However, the process starts in Purchasing with a purchase order. As the central purchasing document, the purchase order contains the information about which purchase order items are relevant for differential invoicing in the subsequent logistics invoice verification.

Prerequisites

The system ensures that the Differential Invoicing field only has the value Relevant for the purchase order item if, for example, no particular processing methods such as evaluated receipt settlement, an invoicing plan, or a returns purchase order exist.

For more information about the prerequisites, see Differential Invoicing in the Commodity Procurement Process, and for information about restrictions, see Differential Invoicing in Commodity Management.

Features

Differential Invoicing Field

You can use the Business Add-In BAdI: Relevance Determination at Document Item Level to determine and check criteria that the system uses when flagging a purchase order item as relevant for differential invoicing. For the BAdI, see Customizing for Materials Management, under Start of the navigation path Purchasing Next navigation step Business Add-Ins for Purchasing Next navigation step BAdI: Relevance Determination at Document Item Level End of the navigation path.

When determining whether differential invoicing is relevant for a commodity, the default implementation LOG_PO_COMMODITY_RELEVANCE checks the Differential Invoicing field in the purchasing info record belonging to the purchase order item:

  • If you have set the value Relevant, the system flags the purchase order item as Relevant.

  • If you have set the value Not Relevant, or if no purchasing info record is available, the system flags the purchase order item as Not Relevant.

Purchase Order with Items that are Relevant and Not Relevant for Differential Invoicing

You can create a purchase order containing some items that are relevant to differential invoicing and some that are not.

Note Note

In the case of a return delivery, you must create a separate purchase order with a corresponding returns item.

End of the note.
Display in Purchase Order History

In a differential invoice and a final invoice, assuming the latter has a predecessor invoice document, the system displays both the current item and the item in the predecessor invoice document (two-line display for each goods receipt item or purchasing item that an invoice refers to). In an additional field the system displays the difference between the two items ([current amount] minus [previous amount]).

In the purchase order history the system combines the current and previous item and calculates the quantity and amount as follows:

  • Quantity = [current quantity] minus [previous quantity]

  • Amount = [current amount] minus [previous amount]

Display with multiple account assignment

In the purchase order history, each account assignment for an invoice item its displayed on its own line. Here too, the system calculates the quantity and value based on the difference.

Units for Purchase Order Quantity and Purchase Order Price Quantity

Typically, price determination in the commodity business is based on rates quoted on a commodity exchange, and refers to the quality of the goods ordered. In the case of materials subject to batch management requirements, certain characteristics (for example protein or fat content in agricultural products, or metal content in mining) can be used to measure quality.

Pricing in differential invoicing determines the respective current quantity and thereby the net price of the material from the current portion of the relevant element of the batch. So it can do this, the units of measure within a purchase order item must be set up as follows:

  • In the item overview there must be batch-unspecific base units of measure for order unit and purchase order price unit, for example TO (Ton) or M3 (Cubic Meter).

  • On the Conditions tab of the detail data, there must be batch-specific material units of measure, for example TCU (Ton of Copper), for which the calculation from the base unit of measure is defined in the material data (under Additional Data, Units of Measure tab), for example 10000 TO equals 3001 TCU).

Example Example

In the material master, you have specified the following conversion for your material subject to batch management requirements: 10000 TO equals 3001 TCU.

The material quantity of the purchase order item should be 80000 TO, and it consists of the components copper, gold, and silver. For copper, the conversion gives a quantity of 24008 TCU.

You can set up the calculation schema in such a way that the three metal prices are taken from the commodity exchange rates for each batch-specific material unit of measure (for example for copper: 8224.50 USD (US Dollars) per TCU, therefore for 24008 TCU, 197,453,796 USD in total). The total of all the metals to be paid for constitutes the net price.

If you reduce the batch characteristic for the copper component at goods receipt based on quality information, the system uses this information to determine the current conversion from the base unit of measure into the batch-characteristic-based material unit of measure for copper (for example 10000 TO now equates to 2937 TCU). It then recalculates the amount for copper and the total net price.

In the purchase order history you can call up the condition display with the calculation details for the goods receipt directly. For the invoice documents for differential invoicing, you must navigate from the purchase order history into the individual documents and call up the condition display from there.

End of the example.
Subpostings

In goods-receipt-based invoice verification for a purchase order item, you can post several goods receipts with different batch numbers, and use differential invoicing for each batch received.

In the incoming invoice, the system displays the invoice items waiting to be posted for the invoice type of the procedure (Provisional Invoice, Differential Invoice, or Final Invoice), and, for example, for the purchase order entered. You can remove items manually and post the remaining items to an invoice document.