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 Procure-to-Pay for Commodities

 

Technical Data

Technical Name of Business Function

LOG_MM_COMMODITY

Type of Business Function

Enterprise Business Function

Available From

SAP enhancement package 6 for SAP ERP 6.0 (SAP_APPL 606)

Technical Usage

Application Component

Purchasing (MM-PUR), Inventory Management (MM-IM), Logistics Invoice Verification (MM-IV)

Required Business Function

Commodity Pricing Engine: BAdI-Based Formula Handling (LOG_CPE_FA_FE)

Incompatible Business Function

As of SAP enhancement package 6 for SAP ERP 6.0 (SAP_APPL 606), the new business function Procure-to-Pay for Commodities (LOG_MM_COMMODITY) provides you with differential invoicing as a process in the logistics applications of Purchasing, Inventory Management, and Logistics Invoice Verification.

Differential invoicing is a multilevel invoicing process in which a provisional invoice is issued, followed by one or more differential invoices, and then a final invoice.

Differential invoicing facilitates the consideration of differences in price determination, for example, due to the price history during a defined calculation period, or due to the measured batch quality of an item in the invoicing process. Price determination for relevant items can be performed using standard price determination or using the connection to the further developed Commodity Pricing Engine (CPE).

This business function has various influences on the applications Purchasing, Inventory Management, and Logistics Invoice Verification.

1) Purchasing

The purchase order contains the new field Differential Invoicing (on the Invoice tab), with which invoice items are indicated as relevant for differential invoicing. The relevance of document items is determined using a BAdI, which enables you to adapt the relevance determination to suit your own requirements.

2) Inventory Management

In Inventory Management, you can update the batch characteristics based on batch samples when goods are received. For the relevant items, the system performs price determination again, which depends on whether one of the following prerequisites has been met:

  • You have used CPE conditions.

  • You have used a batch with price-relevant characteristics for the goods receipt.

  • You have used CPE conditions and a batch with price-relevant characteristics.

3) Logistics Invoice Verification

In the incoming invoice, the invoice processes for differential invoicing (Provisional Invoice, Differential Invoice, Final Invoice) have been added to the drop down list for the field Process.

The price update of various items in an invoice can cause the invoice amount to increase or decrease. For this, there is the new field Difference Posting, which you can use for differential invoices and final invoices to correct the invoice amount accordingly: If the correction amount is higher, the difference is to be posted as an invoice, if the correction amount is lower, the difference is to be posted as a credit memo.

In the relevant invoice items, the batch used for the goods receipt is displayed in a new field that also permits navigation to the batch cockpit. The difference amount of the item (the calculated difference value between the preceding document and the current invoice) is displayed in an additional field. In the condition display of the relevant items, a difference display at condition level is also available.

To display the new invoice operations clearly, there is a separate layout variant: Differential Invoicing.

Integration

This business function does not provide you with any new standalone applications, but with certain enhancements to the Logistics applications Purchasing, Inventory Management, and Logistics Invoice Verification.

Prerequisites

  • You have installed the following components as of the version mentioned:

    Type of Component

    Component

    Required for the Following Features Only

    Software Component

    SAP_APPL 606

  • To use differential invoicing with condition-based commodity price determination, you have also activated the business function Commodity Pricing Engine: BAdI-Based Formula Handling (LOG_CPE_FA_FE).

Features

Differential Invoicing in Logistics Invoice Verification

Logistics Invoice Verification provides new invoice operations for the document sequence for differential invoicing:

  • Provisional invoice

  • Differential invoice

  • Final invoice

If you select Differential Invoice or Final Invoice as the invoice operation, you can set the relevant difference posting to Invoice or Credit Memo, depending on whether the total amount to be posted is postive or negative.

BAdI-Based Relevance Determination

The relevance of document items with regard to differential invoicing is determined using the BAdI Relevance Determination at Document Item Level (ITEM_RELVANCE_DETERMINATION). You can adapt or supplement the BAdI implementation to suit your own requirements for relevance determination. For the BAdI, see Customizing for Materials Management and choose Start of the navigation path Purchasing Next navigation step Business Add-Ins for Purchasing End of the navigation path. With this business function, the BAdI implementation LOG_PO_COMMODITY_RELEVANCE is installed and activated as the default implementation.

BAdI-Based Invoice Validation

When entering or changing a provisional invoice, differential invoice, or a final invoice, you can use the BAdI Invoice Validation to check the invoice items relevant for differential invoicing and decide whether the invoice document may be posted. For the BAdI, see Customizing for Materials Management and choose Start of the navigation path Logistics Invoice Verification Next navigation step Maintain Customer Exits and Business Add-Ins End of the navigation path.

Integration with the Commodity Pricing Engine

In differential invoicing, you can use the Commodity Pricing Engine (business function Commodity Pricing Engine: BAdI-Based Formula Handling (LOG_CPE_FA_FE)) to calculate the prices of listed commodities. Additional BAdIs for formula handling are also available for this purpose.

More Information

For information about existing restrictions for this business function in the current release version (EHP6), see SAP Note 1584025Information published on SAP site. The restrictions are described in the constraints documentation attached to this SAP Note.

For further information, see Differential Invoicing in Commodity Management.