This flowchart depicts a process for creating a purchase order (PO) based invoice in SAP S/4HANA for import procurement.
Key Process Flow steps shown in Flowchart;
- Purchase Order Creation: The purchase department creates a purchase order (PO) for the required goods with delivery conditions such as custom, freight, and CHA (Custom House Agent):
- Advance Payment or Custom Payment: If applicable, an advance payment can be made to the supplier. This can be done against an LC (Letter of Credit) or against a bank. Or a custom payment is performed through MIRO (Invoice Receipt)
- Goods Receipt (GR): Upon receiving the goods, the store department performs a GR against the PO.
- Invoice Receipt and Verification: The supplier sends the invoice for the delivered goods. The account department verifies the invoice against the PO and GR for a three-way match (quantity, price, description).
The flowchart emphasizes the importance of matching the PO, GR, and invoice to ensure accurate accounting records, especially when dealing with import transactions. It also highlights how accounting entries are affected by transactions in SAP.
