Approving purchase invoices

To approve purchase invoices

If the unassigned amount of an invoice is zero or within the tolerances, the invoice is fully matched and you can approve the invoice.

To approve the invoice, select the invoice and on the appropriate menu, click Approve in one of these sessions:

Purchase Invoice Entry (tfacp2600m000)
Process Purchase Invoices (tfacp2107m000)

When the invoice is approved successfully, the invoice receives the status Approved and LN creates several entries in the General Ledger. If the invoice is blocked, LN asks whether the hold reason can be removed.

To approve invoices for payment

In addition to approving the invoices for processing, you can separately approve purchase invoices and costs invoices for payment. In the ACP Parameters (tfacp0100m000) session, you can select the types of invoices for which payment approval is required.

If payment approval is required, an authorized user must approve the purchase invoice in the Authorize Purchase Invoices (tfacp1142m000) session. Only invoices that are approved for payment can be selected in the Select Invoices for Payment (tfcmg1220m000) session of the Cash Management module.

For more information, refer to Payment authorization in Accounts Payable .

To approve price differences and additional costs

When you try to approve an invoice, LN checks if there is any difference between the order amount and the invoice amount. Before you can complete the approval, you must process the differences:

Price differences caused by a changed price per unit or by a difference between the currency exchange rates on the order date and the invoice date. If the price difference exceeds the tolerance margins, an authorized employee must approve the price difference before you can approve the invoice.
Additional costs, such as freight costs, that were not included in the order. To create an additional costs transaction, click Add Costs on the appropriate menu of the Process Purchase Invoices (tfacp2107m000) session. The Matched Purchase Invoice/Statement Line Transactions (tfacp1133s000) is started, with which you can create a transaction for these additional costs.

If the price difference exceeds the tolerance margins, an authorized employee must approve the price difference before you can approve the invoice.

For more information, refer to Authorization of price differences and additional costs.

To update the item's purchase price

After approval, the latest purchase price and the average purchase price for the matched receipt lines or the matched order lines are updated in for the ordered item in the Item - Purchase session.

To prevent the item's purchase price from being updated:

Select the order line record in the Match Purchase Order Lines (tfacp2541m000) session.