What is stochastic blocking in SAP MM-IV - Invoice Verification?

SAP Term: stochastic blocking

• Component: MM-IV

• Component Name: Invoice Verification

• Description: A procedure for checking incoming invoices. In stochastic blocking, the system blocks invoices for payment on a random basis. The higher the invoice value, the higher the probability of it being stochastically blocked.

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• Key Concepts: 
  Stochastic blocking is a feature of SAP's Invoice Verification component of Materials Management (MM-IV). It is used to reduce the risk of incorrect payments by blocking invoices that have a high probability of being incorrect. This is done by using statistical methods to identify invoices that are likely to be incorrect and blocking them from being processed. 
  
  How to use it: 
  Stochastic blocking can be enabled in the SAP system by setting up a rule in the Invoice Verification component. This rule will define the criteria for which invoices should be blocked. Once the rule is set up, any invoices that meet the criteria will be blocked from being processed. 
  
  Tips & Tricks: 
  When setting up a stochastic blocking rule, it is important to ensure that the criteria are set correctly. If the criteria are too strict, then legitimate invoices may be blocked, resulting in delays in payment. On the other hand, if the criteria are too lax, then incorrect invoices may slip through and be processed, resulting in incorrect payments. 
  
  Related Information: 
  For more information on stochastic blocking and how to set up a rule in SAP's Invoice Verification component, please refer to SAP's official documentation on Materials Management (MM-IV).