This flowchart illustrates a sample “To-Be” Invoice Verification process in SAP from a real implementation project, detailing the sequence of steps required to ensure that invoices are correctly verified and processed. Here’s a breakdown of the process:

1. Invoice Receipt: The process begins with the receipt of invoices by different teams – SCM Team (Material), SSC Team (Services), and respective user departments in case of non-P.O. based invoices.
2. Invoice Processing: The invoices are categorized into PO Based (Material) and Non-PO Based (Services). For PO Based invoices, the GR is done at the material receipt warehouse, and the physical invoice is uploaded in SAP. For Non-PO Based invoices, the invoice details are captured if they are Pearl workflow compliant.
3. Invoice Validation and Approval:
   • The SSC team validates the invoice details in SAP. If the validation is not okay, they communicate with the respective user for correction. If the validation is okay, the process moves to check the eligibility of invoices for input tax credit.
   • If the invoices are eligible for input tax credit, the applicability of the reverse charge mechanism is checked. If applicable, the SSC Team flags such invoices in the system if required. If not applicable, the invoice booking is checked for being within 60 days from the end of the financial year.
   • If the invoice booking is within the time limit, the invoice is processed for approval. If an exceptional approval workflow is required, it goes through that process. Otherwise, a Service Entry (SE) is created, and the invoice is parked in SAP. The SSC Team then posts the invoice in SAP.

The flowchart covers different scenarios, such as PO or Non-PO purchases, reverse charge applicability, and timelines for payment of GST under reverse charge.