What is goods-receipt-based invoice verification in SAP MM-IV - Invoice Verification?

SAP Term: goods-receipt-based invoice verification

• Component: MM-IV

• Component Name: Invoice Verification

• Description: A procedure in allowing assignment of incoming deliveries and invoices to an item of a purchase order. If goods-receipt-based has been defined for an order item, an invoice for the order item can be entered with reference to a goods receipt document or a delivery note number entered at the time of goods receipt. In the process, a separate invoice item is created for each goods receipt. Checking of price and formal accuracy of the invoice is performed at this item level.

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• Key Concepts: 
  Goods-receipt-based invoice verification is a component of SAP's Materials Management (MM) module. It is used to verify the accuracy of invoices received from vendors. The process involves comparing the goods received with the invoice to ensure that the vendor has charged the correct amount for the goods. This helps to prevent overpayment and fraud.
  
  How to use it: 
  The process begins with the vendor sending an invoice to the company. The company then receives the goods and compares them to the invoice. If there are discrepancies, they can be reported to the vendor and corrected before payment is made. Once all discrepancies have been resolved, the invoice can be approved for payment.
  
  Tips & Tricks: 
  It is important to ensure that all invoices are checked thoroughly before payment is made. This will help to prevent overpayment and fraud. Additionally, it is important to keep accurate records of all invoices and goods received in order to ensure that all discrepancies are identified and resolved quickly.
  
  Related Information: 
  Goods-receipt-based invoice verification is part of SAP's Materials Management (MM) module. Other components of this module include inventory management, purchasing, and materials planning. Additionally, SAP also offers a range of other modules such as Financial Accounting (FI), Human Resources (HR), and Sales & Distribution (SD).