This flowchart portrays the process for handling invoices associated with purchase orders (PO) within SAP, involving the Accounts Payable (AP) department and the Person in Charge (PIC). Here’s a step-by-step breakdown:

Parking Invoice Process Steps in SAP in detail:

1. Document Verification: The AP officer starts by verifying the vendor document. This includes checking if the invoice, debit note, or credit note is correct and valid.
2. Invoice Detail Entry: Using transaction code MIR7, the AP officer enters invoice details into the system. This data includes invoice date, posting date, invoice amount, tax information, payment terms, and withholding tax details. The document is initially saved with a ‘Park’ status. This ‘Park’ status means the invoice is saved in the system but does not yet update the General Ledger (G/L).
3. Document Transfer to PIC: After parking the document, the AP officer sends the vendor invoice and supporting documents to the Person In Charge (PIC).
4. PO Matching by PIC: The PIC receives the invoice and matches it against the relevant Purchase Order (PO). This matching is also done using transaction code MIR7. The system displays charge item amounts from the PO as suggestions. If there are differences between the PO and invoice amounts for specific items, the PIC overwrites the PO amount with the invoice amount. Explanations for these differences are added in the ‘Note’ tab. Notes are not editable after posting.
5. Document Transfer to Accounting: Once the PIC completes the PO matching and sets the document status to ‘Park complete’, they send the vendor invoice and supporting documents to the Accounting department.
6. Invoice Status Review: Both AP officers and Management Accounting officers can monitor the invoice processing status using the invoice status report (transaction code MIR5). This allows them to track invoices and follow up on PO matching progress by the PIC.
7. Invoice Posting: The AP officer posts the invoice to finalize the process. This step, done via transaction code MIRO, updates the accounting system and automatically generates accounting entries and documents.
   • Accounting Entry:
     • Debit Goods Received/Invoice Received (GR/IR) or Expense Account
     • Debit Input VAT/Deferred VAT
     • Credit Vendor Account
     • (Potentially Credit Expense Account in some scenarios)

   The system generates two document types: a logistic invoice document and an accounting (FI) document. The system also checks for variance tolerances. If the variance exceeds the set tolerance, the invoice is automatically marked as ‘Blocked for payment’.

   • If not blocked: The invoice proceeds to the payment process when due.
   • If blocked: The process moves to step 8 for approval.
8. Block Notification: If an invoice is blocked for payment due to variance, the AP officer informs an authorized person for approval.
9. Variance Verification: The authorized person reviews the blocked invoice using transaction code MRBR. They verify the variance and communicate with the PIC to understand the reason for the discrepancy or to check the invoice’s correctness.
   • If invoice is correct: Proceed to step 10 to release the payment block.
   • If invoice is incorrect: Proceed to step 11 to contact the vendor.
10. Block Release: If the authorized person confirms the invoice is acceptable despite the variance, they release the payment block in MRBR. This allows the invoice to be paid.
11. Vendor Contact: If the invoice is incorrect, the AP officer or PIC contacts the vendor to resolve the issue.
12. Debit/Credit Note Request: If the invoice error cannot be resolved by cancellation, the vendor is asked to send a debit note or credit note to correct the original invoice. The process then restarts from step 1 with the new debit or credit note document.
13. Document Reversal: If the vendor cancels the incorrect invoice, the AP officer reverses the posted invoice document in the system using transaction code MR8M. The system requires a reversal reason and automatically posts reversal accounting entries and documents.

This flowchart details a standard process for managing vendor invoices with PO matching, ensuring accuracy and control in accounts payable operations.