Supplier Invoice Processing Enterprise Service
Enterprise Service Operations
Credit Memo Create Request
With reference to evaluated receipt settlement, this service creates a credit memo for the supplier in the customer’s system as soon as the goods receipt or service entry is confirmed. more… With reference to evaluated receipt settlement, this service creates a credit memo for the supplier as soon as the goods receipt or service entry is confirmed. Evaluated receipt settlement is an agreement between between the vendor (creditor) and the buyer that the vendor does not issue invoices for purchasing transactions. Instead, the invoice document (credit memo) is posted automatically in the buying entity’s system on the basis of data from the purchase order and goods receipts.
Incoming Invoice Create Request Confirmation
This service creates incoming invoices and credit memos during the invoice verification process. An invoice represents a liability of the company to the invoicing party.
Supplier Invoice Change Request Response
This retrieves the inventory valuation price of a product/material.
Supplier Invoice Confirmation
This service confirms the receipt of an invoice to the supplier.
Supplier Invoice Information
After another service has checked if a supplier invoice exists in the system in duplicate, this service gives information if this supplier invoice has been accepted or cancelled.
Supplier Invoice Release Request Response
This service releases the invoice of a supplier for further processing.
Supplier Invoice Request
A Supplier Invoice Request is a legally binding notice about accounts receivable or accounts payable for delivered goods or provided services – typically a request that payment be made for these goods or services.
Supplier Invoice Request Response
Service operation to create a Supplier Invoice
Commonly Used Domains in Supplier Invoice Processing for ITSM Practice:
- Invoice Verification and Validation: Ensuring accuracy, completeness, and compliance with policies and contracts.
- Invoice Processing and Approval Workflows: Managing routing, approvals, holds, and exceptions for timely payments.
- Integration with Procurement Systems: Linking invoice data to purchase orders, receipts, and contracts for seamless reconciliation.
- Payment Processing and Reconciliation: Handling payments, managing cash flow, and ensuring accurate financial records.
- Reporting and Analytics: Tracking key metrics, identifying trends, and supporting continuous improvement.
Use Case for ITSM Solution Delivery in SAP S/4HANA:
Scenario: A company aims to automate and streamline its supplier invoice processing to reduce processing time, improve accuracy, and enhance visibility.
- Implement SAP S/4HANA Supplier Invoice Processing module:
- Leverage features like automated invoice capture, validation, routing, and approval workflows.
- Integrate with procurement and financial systems for seamless data exchange.
- Establish ITSM processes:
- Define clear roles and responsibilities for invoice processing.
- Implement a standardized incident and problem management process for invoice-related issues.
- Track key metrics to measure performance and identify areas for improvement.
- Integrate with ITSM tools:
- Use a service desk for invoice inquiries and support.
- Utilize knowledge management tools to share best practices and troubleshooting tips.
- Integrate with change management processes for system updates and enhancements.
- Reduced processing time and costs
- Improved accuracy and compliance
- Enhanced visibility and control
- Better decision-making with data-driven insights
- Strengthened supplier relationships
Here’s the use case workflow:
|Automate and streamline supplier invoice processing
|Accounts Payable (AP) staff, Procurement staff, Finance staff, IT staff
|Reduce processing time, improve accuracy, enhance visibility, and control of supplier invoice processing
|SAP S/4HANA implemented, ITSM processes in place
|Supplier submits an invoice
|1. Invoice received electronically or manually.
2. Invoice data captured and validated.
3. Invoice routed for approval based on pre-defined rules.
4. Approvers review and approve or reject the invoice.
5. Approved invoices scheduled for payment.
6. Payments processed and reconciled.
7. Invoice status updated and notifications sent to relevant parties.
|– Invoice requires clarification or additional information.
– Invoice is rejected for payment.
– Payment is delayed or disputed.
|Invoice processed and paid (or rejected), records updated, audit trail maintained.
|– Faster processing times
– Reduced errors and improved accuracy
– Enhanced visibility and control
– Better compliance with policies and regulations
– Improved supplier relationships
– Cost savings
|Measures of Success
|– Reduction in invoice processing time
– Decrease in invoice errors and discrepancies
– Increase in on-time payment rates
– Improved user satisfaction with the process
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