Scope of the Blog: Show The purpose of the blog is to provide the overview of three way match Functionality & how SAP configuration can be utilized to achieve three way match functionality. SAP Three way match is one of the most common Purchase to Pay Business Process for Direct Materials (Stock Items) which exists across all industries. SAP Three-way match overview:
Configuration for Three-way Match The Configuration for Three way match is done in the Following path is done in the following path. SPRO-> Materials Management-> Logistics Invoice Verification-> Invoice Block-> Set Tolerance Limits Configuration for Quantity Variance (Q): Tolerance Key DW: Tolerance Key DW blocks the Invoice when there is no corresponding GR for a line item of a PO. It prevents the invoice to be paid immediately to vendor. Example: PO Qty -100 Vendor Provides Invoice first for 100 Qty . GR is Posted after few days of invoice Posting Result: As soon as the invoice is posted in the system the invoice gets blocked due to DW tolerance key & doesn’t allow the system to pay the invoice immediately. The Blocked invoice appears in MRBR report & Buyer of the Purchase order takes the suitable Decision to ensure three way match.  Tolerance Key DQ : Tolerance Key DQ Blocks invoice when there is Quantity discrepancy Example: DQ tolerance Config-5% PO Qty-100 GR Qty-100 Invoice Qty-150 Result: Since the invoice quantity is higher than the PO quantity the invoice gets blocked due to DQ tolerance Key. The Blocked invoice appears in MRBR report & Buyer corrects the discrepancy by taking suitable organisational decisions. Configuration for Price Variance (P) Tolerance Key PP: Tolerance Key PP compares the price between purchase order & invoice with the Tolerance limit specified in the configuration. Example: PP tolerance in Config-200 $ PO Price -1000$ Qty-1 GR-Qty1 Invoice Price- 1400 $ Result: Invoice is blocked since the Invoice price is higher than the PO price (More than Tolerance Specified.) The blocked invoice appears in MRBR report & Buyer corrects the discrepancy by taking suitable decisions. Configuration for Order Price Quantity (OPQ) SAP provides two Tolerance Keys ToleranceKey BR (IR before GR) & Tolerance Key BW (GR before IR) to address the order price quantity scenarios. Tolerance Key BR (IR before GR) : Invoice gets blocked if the Order Price Quantity variation is more than the value specified in configuration. The system compares the ratio between quantities invoiced in order price quantity units: quantity invoiced in order units Vs quantity ordered in order price quantity units: quantity ordered in orderunits
MRBR (Program RM08RELEASE)Report This report is run by Buyer of the Purchase order (Purchasing group wise) to verify the list of invoices blocked due to Quantity & Price variance for a given company code.
This program doesnot remove the block if the discrepancy is not resolved.The best practice is to run this report in background by company code so that the program removes the block automatically after the corrective action taken by Buyer. What is a 3A three-way match is the process of comparing the purchase order; the goods receipt note and the supplier's invoice before approving a supplier's invoice for payment. A 3-way match helps in determining whether the invoice should be paid partly or in its entirety.
What are the 3 documents required to process a purchase order payable?There are three documents that are integral for managing payments through accounts payable: invoices, order receipts, and purchase orders.
How do you do a 3Three-way match is the process of comparing the purchase order, invoice and goods receipt to make sure they match before approving the invoice for payment. If they match, the supplier's invoice will be approved for payment. A 3-way match helps decide if an invoice should be paid partly or in full.
What is a 3A three-way matching is the process of matching purchase orders (PO), goods receipt note, and the supplier's invoice to eliminate fraud, save money, and maintain adequate records for the audit trail. Three-way matching is usually done before issuing payment to the supplier post delivery.
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Which documents are needed to complete the 3 way match in procurement transactions note there are 3 correct answers to this question?
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