In Invoice Verification - as in other applications - the SAP system often needs to retrieve stored data, change this data where necessary, or add new information.

Depending on the type of information, the data in the SAP system is stored in different master records (such as the material master record or the vendor master record). The central storage of data prevents redundancy. It also guarantees that the most up-to-date information from the different departments (Material Requirements Planning, Purchasing, Inventory Management, Quality Management, and Invoice Verification) is available for the other areas at all times.

The key data required for Invoice Verification is:

• Master data and
• Transaction data

If an invoice contains a cash discount and taxes, more tax is posted with the invoice than should be, as the cash discount is not taken into account. This happens regardless of whether the invoice is posted as a gross or as a net amount. Upon payment by Accounting, the tax amount is adjusted automatically, i.e. the tax amount for the cash discount is credited to the input tax account.

Master data is permanent data on objects, such as materials, in the SAP system. Every object is given a unique number by which it can be identified in the system.

Material data is information on the materials bought or produced in the company. This includes the material number, material name, units of measure, stock data, overdelivery and underdelivery tolerances, reminder keys, price control data, and prices. Material data is maintained by different departments in the Materials Management area.

Vendor data provides information on the suppliers a company deals with. Vendor data includes the address, bank data, possibly also the name of the bank head office, the currency of the vendor, as well as the terms of payment and delivery. Vendor data is maintained by the Purchasing and Accounting departments.

Accounting data is used to define G/L accounts. It includes the account name, the account type, the currency in which the account is managed, information as to whether an account may be posted to directly and which financial budget it is allocated to. The accounting data is maintained in the Financial Accounting component.

Transaction data records transactions or events in the SAP system. Whenever you post a purchase order, scheduling agreement, goods receipt, or invoice, the system automatically creates a document. The document data of a transaction depends on the application area the transaction belongs to. Every document receives a document number through which it can be clearly identified.

A purchasing document contains information such as the vendor number, the purchase order date, the terms of delivery, the material number and the order quantity.

A material document is created when a goods receipt is posted. It includes the posting date, the quantity delivered, and perhaps also the delivery note number and the purchase order number the goods receipt refers to. The material document records quantity changes.

An accounting document is created when a valuated goods receipt or an invoice is posted. It contains details of the individual postings with the account number, posting key and the amount. The accounting document records changes in value.