P2P Audit Reports SRM/MM
The blog talks about 2 types of financial checks which generally measures the effectiveness of a P2P accounting process and helps to keep the books clean as well as assist in forecasting and planning,
1. The PO commitment report: It shows the amount the PO was ordered for and the open items which are not GRd or invoiced. So, for example, a user ordered for 500$ worth of goods or services out of which only 200$ has been GRd and 200$ has been invoiced. Now the open 300$ could be due to:
- The balance amount 300$ is no longer needed in such a case delivery completion indicator should be checked which will change the status of Still to delivered value to 0
- Or the balance amount is needed but has not been actioned for XX months depending on your business requirement you can either ask the requestor to complete the order or mark it as pending
- PO was ordered but is no longer needed. After discussing with the vendors the balance amount should be cleared off and PO should be completed/ Canceled
The check in the system should ensure that the POS is fully consumed if it has been ordered or marked as delivery completion if partial delivery is done and balance amount is no longer needed. The below PO shows the pending amount as 0 and marked as delivery completion X as seen in Figure 448
Figure shows the value of Still to deliv. as 0
This report can be run for specific cost objects like for WBS elements it would be
- Display project Actual Costs CJI3
- Display Project Actual commitment line item CJ15
- Display actual cost for cost center KSB1
- Display commitment line for Cost center KSB2
For split account assignment sometime marking the field delivery completion indicator as X does not really clear off the commitment so for those cases please ensure the Final_invoice indicator is also marked as X in SRM system.
2. The GR/IR imbalance report: This report consists of those Invoices which were posted but they have not been GRd by the requestor hence the payment is not cleared for them. Now, this is a huge issue for the company as these are open payments which can be either of the below reasons:
o Vendor invoice was sent to the requestor and requestor is no longer part of the organization so someone should ensure the PO is checked for completion and invoice is cleared by posting a GR
o Vendor invoice was incorrect due to the Wrong amount, Wrong details like dates etc, was sent as a duplicate, was not itemized correctly and in all such cases the Invoice should be rejected by the requestor which should also update the system
o Vendor invoice was actually all correct, but the requestor delayed the payment and is not cleared even after XX Months so this should be followed up with the requestor as there may be additional charges incurred if the payment terms on the PO are not met. Hence, it is important to clear the accounts payable on the company records.
o There may be another case where the GR was done for $2362 and Invoice only came for $2154 and thus the payments are not made for the balance $208. This action is however on the vendor side as it is with the vendor to send the invoice. I have not really seen the companies targeting to close this proactively form their end as seen in Figure below invoice amount is less than the GR’d Amount.
The standard report which can be used to check the GR/IR imbalance is FBL31N which does the checking on a GL account. If you need a custom report you can combine different tables as below and create your own report to check the open commitments due to GR/IR imbalance.
If the report still does not work as expected as refer below notes from SAP which may be able to help with the issue and you can create custom reports using SAP standard tables
o 1492317 – Incorrect commitments after posting service entry sheet
o 1491430 – Incorrect Commitments for Service Items
o 644032 – Final invoice indicator for commitments
o 204376 – Commitments – valuated GR with a value-based commitment
Thanks for taking out time to read the article.
Read another blog post as mentioned below which talks about existing standard FI reports which can be used for financial reconciliation and analytics
If you have any inputs on how you manage the accounting system in SAP P2P scenario by leveraging best practices please share as comments in the blog.
Thanks for reading and let me know your comments and feedback