Purchase To Pay Or (Procure-to-Pay (PTP) Flow - SAP MM Module - Page III.


After the vendor delivered the material/service, it will send the invoice to the person responsible in the company. Invoice is a formal document issued by a vendor to the company to request the payment for the material or service that the vendor has already provide to the company according to the terms of payment agreed in the PO.

Invoice verification is simply a method of capturing the details from the vendor’s invoice.

If the details of the invoice match the expected details specified by any related purchase order (PO) and goods receipt (GR), the invoice can be made available for processing of payment.

Unmatched invoices are excluded from the payment run and need to be investigated and released before payments can be made. Possible consequences of this include a loss of cash discounts, having purchase orders rejected by the vendor, and even losing the vendor account.

Important steps involved are:

  • The capture of the vendor’s invoice details.
  • The matching of those details to the details that we believe to be correct.
  • The investigation of any mismatches.
  • The release for payment of matched invoices.
  • The accounting entries involved (including taxes and delivery costs.
  • The details recorded for audit purposes.

The handling of mismatched invoices occurs in transaction code MRBR, which also includes the release for payment if the invoice is successfully matched.

7) VENDOR PAYMENT (FI) - Account payable - Transaction Code - FB60:

Once the invoice verification is done and cleared, invoice receipt is prepared.

After the Invoice Receipt (IR) transaction has been posted, the vendor’s account payable will increase and the company must process the payment to that vendor as stated in the terms of payment of the PO. The payment transaction will be performed in FI module through transaction code FB60. After the payment has been posted, the vendor’s account payable will be debited and the cash or bank account will be credited.

... Previous Page (Page II).


1) Introduction To SAP MM Module (Material Management).

2) SAP MM - Important Transaction Codes, Table Links & Flows.

3) Purchase To Pay Or (Procure-to-Pay (PTP) Flow - SAP MM Module - Page I.

4) Purchase To Pay Or (Procure-to-Pay (PTP) Flow - SAP MM Module - Page II.

5) Purchase To Pay Or (Procure-to-Pay (PTP) Flow - SAP MM Module - Page III.

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