Procurement Three Way Match Process

** A cost centre is where on the budget

Step 1: Raising a Shopping Cart money is to be spent from
(usually two letters followed by 4 numbers
Create Shopping Cart e.g. SP1000)
A general ledger code determines on what
Assign cost centre(s)** and general e.g. 43202 - stationery
ledger code(s)** to items in the cart Do not assign to codes starting 6 as these are
income codes not expenditure codes

Requires Cart Sent To

Y
Approval? Approver

N (Self Approved) Rejected Cart

Approved? N Returned to
Originator
Y
Purchase Order
Produced

Approver makes a
change on the cart
A COMMITMENT is posted
on the Budget against the Changed cart sent back
cost centre(s)/ general ledger to approver
code(s) assigned when the Cart is returned to the
cart was created originator
(R/3 Budget Report:
s_alr_87013620)

Change to the cart is

accepted by the
originator
Procurement Three Way Match Process Goods/services are
Step 2: Goods Receipting received

Create a confirmation
Has the FULL order
N Y against the purchase
been received?
order

An item(s) has been

discontinued and will not N
be received The commitment becomes an
Not all items have been ACTUAL on the Budget against
received- these items the cost centre(s)/ general ledger
If only some of the ordered
are due to follow on a code(s) assigned when the cart
items have been delivered
separate delivery was created
and no more are expected
(R/3 Budget Report:
e.g. 5 of the same item
Is the discontinued item s_alr_87013620)
ordered and only 3 sent
N on a separate line on its own on
and no more to follow -
the purchase order? GOODS RECEIPT THE ITEMS YOU
change the quantity on the
confirmations screen to HAVE RECEIVED
reflect what was received Untick the line item(s) not received and/
and tick Last Delivery or change the quantity of items received
Y THIS MUST REFLECT WHAT HAS
BEEN RECEIVED
Change the purchase
order and delete the
discontinued line Post this
confirmation

The item(s) that have been confirmed (goods receipted)

The commitment for the discontinued will now show as an ACTUAL on the budget.
item(s) will be removed from the budget The outstanding items will remain as a COMMITMENT
(R/3 Budget Report: s_alr_87013620) (R/3 Budget Report: s_alr_87013620)
Procurement Three Way Match Process
Step 3: Invoicing
Invoice received
N order been invoiced and the
Not all items listed
On the Invoice Entry screen,
un-tick the original purchase
order lines that have not been
charged for on this invoice
On the Invoice Entry screen change the
The un-ticked lines will remain
on the Invoice Entry screen-
once an invoice(s) for the rest of
the purchase order arrive, post
as normal
The vendor sends a partial credit
for the overcharged amount only
Enter the partial credit into
transaction FV65 in R/3
The actual amount will be updated on the budget
to reflect an amount has been credited back
(R/3 Budget Report: s_alr_87013620)
Post the invoice- ensure that
the invoice date is correct
Y
The invoice will be paid to the
vendor (assigned on the
Has the full purchase original shopping cart) 28 days
after the invoice date
prices are the same as the original
purchase order? If prices have changed from the
original purchase order, these
changes will be reflected on the
N ACTUAL budget figure
The prices differ (R/3 Budget Report:
s_alr_87013620)
Y
prices and Post the invoice as normal
The invoice will be sent back to
the approver in R/3 to re-
Y approve
SAP Automatic Check:
Do the changed prices exceed Approver Re-
the price tolerance? Approves?
N
Approver rejects price
increase- originator
contacts vendor to re-
Post the credit note in the portal to cancel
negotiate prices the original invoice.
N
The cart originator should then go into the
R/3 Workflow inbox to send a note to the
Y approver- “dispute resolved”
Vendor sends credit
note for full amount and The approver can then release the original
invoice for payment in the R/3 inbox (as the
issues new invoice?
credit will cancel it out)