Invoice verification
Invoice Verification (Logistics Invoice Verification) checks and posts vendor invoices, matching them against the purchase order and goods receipt before the liability is recorded and paid. It is the control gate of procure-to-pay (transaction MIRO).
Invoice verification is the finance-facing end of MM: it creates the AP liability that AP then pays and clears GR/IR.
- When a vendor invoice arrives, invoice verification matches it to the PO (price, terms) and the goods receipt (quantity), the…
- Three-way match: PO vs GR vs invoice.
- Tolerances: allowed price/quantity variances.
- Watch out: Loose tolerances letting through wrong invoices.
What invoice verification does
When a vendor invoice arrives, invoice verification matches it to the PO (price, terms) and the goods receipt (quantity), the three-way match. If it matches within tolerance, it posts the vendor liability (FI-AP) and clears the GR/IR account. If not, it blocks the invoice for review.
Key concepts
- Three-way match: PO vs GR vs invoice.
- Tolerances: allowed price/quantity variances.
- GR/IR clearing: cleared by the invoice posting.
- Blocking & release: invoices held for discrepancies (MRBR).
Integration and control
Invoice verification is the finance-facing end of MM: it creates the AP liability that AP then pays and clears GR/IR. The three-way match and tolerances are a core control against overpaying or paying for goods not received, a key audit and cash-control point.
Common pitfalls
- Loose tolerances letting through wrong invoices.
- Not resolving blocked invoices (payments delayed).
- GR/IR not clearing due to quantity/price mismatches.