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Invoice reference in accounts payable documents

Introduction

In financial accounting documents, the fields invoice reference (REBZG), fiscal year (REBZJ) and line item (REBZZ) are available for incoming and outgoing documents. These fields are important to avoid duplicate or incorrect outgoing payments. In this blog the use of these important fields in accounts payable is discussed.

Use of invoice reference fields

In the standard system the field is used for:

  1. Credit memos which refer to a particular invoice item
    The terms of payment are copied from the cross-referenced invoice item into the item currently being processed. This ensures that items due on the same date are paid together by automatic payment.
  2. Subsequent invoices for an invoice item
    The terms of payment are copied from the cross-referenced invoice item into the item currently being processed. This ensures that items due on the same date are paid together by automatic payment.
  3. Partial payments for an invoice item
  4. Partial clearings of down payments

A special rule applies to credit memos which have a ‘V’ in this field. The due date is determined in the same way as for an invoice whereas if the field is empty (containing neither a document number nor a ‘V’) the due date is the baseline date for payment.

Additionally the invoice reference can also be used for clearing invoices.

In the following paragraphs the use of the invoice reference fields is documented using examples.

 

Credit memos which refer to a particular invoice item

When linking an invoice at time of posting the credit note by entering fields for the fields invoice reference (REBZG), fiscal year (REBZJ) and line item (REBZZ) in Accounts Payable (FI-AP) or invoice reference (REBZG) and fiscal year (REBZJ) in Logistic Invoice Verification (MM-LIV), the payment parameters are copied from the invoice.

Example in Accounts Payable (FI-AP)

In the vendor credit note the invoice is linked using invoice reference fields.

The result is that the original invoice and credit note are always paid together in the automatic payment program avoiding incorrect payments.

 

Subsequent invoices for an invoice item

When linking an invoice at time of posting subsequent invoice by entering fields for the fields invoice reference (REBZG), fiscal year (REBZJ) and line item (REBZZ) in Accounts Payable (FI-AP) or invoice reference (REBZG) and fiscal year (REBZJ) in Logistic Invoice Verification (MM-LIV), the payment parameters are copied from the invoice.

Example in Logistic Invoice Verification (MM-LIV)

In the vendor subsequent invoice the original invoice is linked using invoice reference fields.

In the financial accounting document, the link is established automatically.

 

The result is that the two invoices are always paid together in the automatic payment program.

 

Partial payments for an invoice item

When posting a partial payment in Accounts Payables (FI-AP), the invoice reference is stored in the vendor line of the payment.

The result is that the two documents are always paid together in the automatic payment program avoiding incorrect payments.

 

Invoice reference blank or ‘V’ in credit notes

For credit notes, for which the field invoice reference is not filled, the due date is the baseline date for payment. If a ‘V’ is entered in the field invoice reference, the due date is determined in the same way as for an invoice.

 

Conclusion

The invoice reference fields are important when paying vendor invoices to ensure that items due on the same date are paid together by automatic payment. Additionally these fields are also useful when clearing invoices.

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