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 Detection Method: Round Invoice Amounts Above Threshold for Vendor

 

You can use this method to detect vendors for whom there is a high percentage of invoices with rounded amounts, such as 1000.00 or 10,000.00. For this method, you specify the following:

  • The minimum percentage of invoices that must be rounded in order to be relevant for a fraud alert

  • The number of trailing digits that must be 0 to qualify an amount as rounded

  • The minimum threshold for the amount of a rounded invoice

An alert is triggered for a vendor if all of the threshold conditions are met

Logic

Relevant detection objects are restricted to those with table BSEG field VBUND = initial (not intercompany) and account type KOART = K.

The execution procedure first converts the threshold amount from the input parameters into the currency of the invoice item. It then determines how many invoices have rounded amounts as a percentage of all invoices. If this percentage exceeds the threshold for a vendor, then the method returns those rounded invoices that exceed the minimum amount in the input parameters.

Investigation and Detection Object Types

Investigation object type: FRA_VEND (Vendor)

Detection object type: FRA_VEINVI (Vendor Invoice Item)

ERP Tables Used

  • BKPF: Accounting Document Header

  • BSEG: Accounting Document Segment

SAP HANA Procedures for Detection Methods

Procedure Category

Procedure Name

Procedure Type

Package

Selection

PR_VENDOR_ROUND_INVOICE_AMOUNT_SELE

SQLScript Procedure

sap.hana-app.fra.suite.pur.dt.vendor.invoiceitem.se

Execution

PR_VENDOR_ROUND_INVOICE_AMOUNT_EXEC

SQLScript Procedure

sap.hana-app.fra.suite.pur.dt.vendor.invoiceitem.ex

Additional Information

PR_VENDOR_ROUND_INVOICE_AMOUNT_ADDINF

SQLScript Procedure

sap.hana-app.fra.suite.pur.dt.vendor.invoiceitem.ai
Detection Method Parameters

  • NUMBER_OF_DIGITS: The number of trailing digits to the left of the decimal sign in the invoice amount that must be “0” to qualify as a rounded amount. Digits after the decimal sign must always be zero.

    Example: If NUMBER_OF_DIGITS = 3, then 1000,00 is counted as a rounded amount. 1000,34 would not be counted as a rounded amount.

  • THRESHOLD_AMOUNT: The minimum amount of rounded invoices that should be reported as irregular by the detection method.

  • THRESHOLD_CURRENCY: The currency in which THRESHOLD_AMOUNT is denominated, so that amounts can be converted for comparison.

  • INVOICE_SHARE: Minimum percentage of rounded invoices. Invoices above THRESHOLD_AMOUNT are returned as suspicious only if the percentage of rounded invoices as a percentage of all invoices exceeds the INVOICE_SHARE threshold.

Alert Messages

  • Message ID FRA_INTERNAL_AUDIT, message number 108, Invoice item &1, from vendor &2, has a round amount: &3 &4

Variable &1 is the concatenation of the document and item numbers of the invoice, variable &2 is the name of the vendor, variable &3 is the amount of a rounded invoice, variable &4 is the currency.