SAP Central Invoice Management

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In this blog, I would like to highlight the recent changes introduced by SAP for Invoice Management.

The previous Invoicing Solution included in the scope item Invoice Processing by OpenText (‏1LE‏) has been deprecated. The scope item 1LE is only available for customers who have licensed it already.  Also, for those customers, the scope item will be deprecated upon the next license renewal.

The new scope item recommended for SAP S/4HANA Cloud, public edition is Invoice Processing with SAP Central Invoice Management (4N6). The scope item is excluded from default activation and it requires licenses for additional products.

The SAP Central Invoice Management solution is a compound of 2 modules:

• SAP Central Invoice Management


• SAP Central Invoice Management, inbound processing module

SAP Central Invoice Management on SAP Business Technology Platform (BTP) provides a unified solution for receiving and managing supplier invoices, with connection to multiple systems, such as SAP S/4HANA Cloud systems.

The SAP Central Invoice Management, inbound processing module enables the processing of invoices across multiple inbound channels. Currently, native optical character recognition (OCR) capabilities are available through the Document Information Extraction business service or partner offerings through an API. These OCR capabilities enable touchless, automated handling of paper-based and PDF e-mail invoices.

The module enables streamlining the processing of both PO-based and non-PO invoices and prioritizes the payment of specific invoices.

Below are the steps on how the solution will look when being executed in SAP S/4HANA Cloud, public edition:

 

1. App “Upload Supplier Invoices Centrally” will be launched and the user will input the company code and provide a description of the upload,

 

3. The invoices will be selected for upload

4. Once the upload is completed, the related draft invoices are created in Central Invoice Management and each of them will be assigned a central invoice ID:

5. The invoices are being checked in the background, OCR extracts the supplier information and sends it to the connected systems.


6. The connected systems will run a background verification job for PO-based invoices. The PO  invoices will either be automatically posted or will require some manual adjustments.

Non-PO invoices will either be parked ( they can be edited via "Advanced Edit " action) or saved as completed (with "Submit" user action or via the automatic submission by the solution after the OCR extraction).

7. App “ Manage Supplier Invoices Centrally” will be launched to check the status of the uploaded invoices:

There are 3 possible statuses:

• Posted: the background verification job didn’t raise any errors and the invoices were posted successfully


• With errors: you can click the Open Invoice button that will open the draft and you can correct the errors


• Drafts: some fields are incorrect or missing; You need to click on the invoice number to be redirected to Central Invoice Management where you can add the missing data and resubmit the invoice. Upon resubmission, the invoice will go via the background job verification again in the connected systems

 

Please refer to the following resources for the SAP Central Invoice Management solution:

Overview of SAP Central Invoice Management

SAP Central Invoice Management with SAP S/4HANA Cloud, public edition (webinar-Login to Learning HUB...

SAP Central Invoice Management- Documentation

 

Enjoy reading and keep sharing knowledge! 🙂