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 Detection Method: Customer Invoice Irregularities (Split Invoice)

 

You can use this detection method to detect smurfing, that is, the split-payments of invoices. This method evaluates the selected invoice items related to a particular customer to check that payments are not split into many small payments instead of one larger payment that is greater than a threshold specified by the user.

In general the method adds up small payments, as defined by a maximum amount parameter, during a specified period of time. If the sum of payments exceeds a specified threshold, then an alert is raised. The method is restricted to invoice items with posting keys Reverse Invoice, Credit Invoice, Invoice, Reverse Credit Memo (‘01’ OR ‘02’ OR ‘11’ OR ‘12’), which are not intercompany, and which have the account type Customer.

Logic

The execution procedure first converts the THRESHOLD_SINGLE parameter to the currency of the company code, so that the threshold may be applied to invoice item amounts. Then all line items that have an amount smaller than the THRESHOLD_SINGLE parameter and that have the correct posting key are selected and converted to the currency of the THRESHOLD_SUM parameter (THRESHOLD_SUM_CURRENCY parameter).

These line items are then summed up and aggregated by customer, whereby credits are added to the sum, debits are subtracted.

If the sum of all relevant invoices related to this customer is greater than the THRESHOLD_SUM limit on the sum of the invoices, then the invoice items of the customer are suspicious and an alert is raised.

The Risk Amount is defined as the sum of the amounts of the selected invoice items of the customer.

Investigation and Detection Object Types

Investigation object type: FRA_CUST (Customer)

Detection object type: FRA_CUINVI (Customer Invoice Item)

ERP Tables Used
  • BKPF: Accounting Document Header

  • BSEG: Accounting Document Segment

  • RSEG: Document Item: Incoming Invoice

  • Tables for currency conversion (TCURV… ) These tables are replicated as part of the standard default replication, if you are using the Internal Audit business content and SAP LT data replication. The complete list of currency conversion tables is listed in the Installation Guide at http://help.sap.com/fraInformation published on SAP site.

Procedures for Detection Methods

Procedure Category

Procedure Name

Procedure Type

Package

Selection

PR_CUST_SPLIT_INVOICE_SELE

SQLScript Procedure

sap.hana-app.fra.suite.ord.dt.customer.invoiceitem.se

Execution

PR_CUST_SPLIT_INVOICE_EXEC

SQLScript Procedure

sap.hana-app.fra.suite.ord.dt.customer.invoiceitem.ex

Additional Information

PR_CUST_SPLIT_INVOICE_SELE

SQLScript Procedure

sap.hana-app.fra.suite.ord.dt.customer.invoiceitem.ai

Detection Method Parameters
  • THRESHOLD_SINGLE: The maximum amount of an invoice item that is to be processed by this detection rule. If the invoice item amount exceeds this threshold, then the invoice item is ignored for detection purposes. All amounts (threshold and invoice item amounts) are converted into the currency of the company code in order to compare the amounts in the same currency.

  • THRESHOLD_SINGLE_CURRENCY: The currency of the threshold single amount.

  • THRESHOLD_SUM: The alert threshold for the sum of the invoice items of a customer. If the sum of the invoice items for the customer is lower than this threshold, then the invoice items are deemed not to be suspicious. All amounts are converted into the currency of the company code in order to compare the amounts in the same currency.

  • THRESHOLD_SUM_CURRENCY: The currency of the threshold sum amount.

Alert Messages
  • Message ID FRA_INTERNAL_AUDIT, message number 085; The sum of invoices &1 &2 exceeds the given limit of &3 &4 for the sum