Quality Based Invoice

Quality Based Invoice
Applies to:
SAP 4.6 C and later releases. For more information, visit the Manufacturing homepage.
Summary
This article discusses the business process of paying the vendor based on the quality of the goods delivered.
For instance, after the milk is been delivered from vendor it is be under quality check and based on the fat
content of the milk the price will be calculated for vendor payment.
Author: Kaushik Choudhury

Company: Tata Consultancy Services
th
Created on: 15 April, 2011
Author Bio
SAP Functional Consultant working primarily in production planning & control (PPC) & quality
management (QM) area predominately for FMCG business. Worked on diverse flavors of projects
viz. Implementation, Production Support & Enhancements, Upgrade etc. Previously, worked in
production planning & shop floor control in Aerospace sector.
Specialties: SCM - APO (SNP), SAP Production Planning, and Quality Management
SAP COMMUNITY NETWORK SDN - sdn.sap.com | BPX - bpx.sap.com | BOC - boc.sap.com | UAC - uac.sap.com
© 2011 SAP AG 1
Table of Contents
Quality Based Invoice – Overview ...................................................................................................................... 3
Baseline Configuration and Master Data ............................................................................................................ 3
End to End Template Scenario of Quality Based Invoice ................................................................................... 6
Purchasing ...................................................................................................................................................... 6
Quality Inspection............................................................................................................................................ 7
Related Content .................................................................................................................................................. 9
Disclaimer and Liability Notice .......................................................................................................................... 10
© 2011 SAP AG 2
Quality Based Invoice – Overview

In real life often we come across business scenario where vendor has shipped the product which is not cent
percent inline with the expected quality but at the same time it can be used and there is no need to send it
back or reject it completely . In such cases obviously customer will revaluate the sub-standard product price
based on the actual attribute of the product received and pay to vendor accordingly. Quality based invoicing
concept helps to practice this in SAP.
Baseline Configuration and Master Data

Pre-requisite: QM in procurement is been implemented .Stock will only be posted from QI to unrestricted
after the are result recorded and usage decision.
Material master
In the material master maintain the Batch-specific material unit of measure (proportion/prod. unit)
Purchasing info record: In the Purchasing info record maintain the target price of the characteristics for
which planned value is maintained in the material master. In the screen shot below it is maintained
© 2011 SAP AG 3
25 EUR per 1000 %S. Please note that %S is custom unit maintained in SAP to measure and record the
value of the product attribute.
Custom Function Module: Bespoke function module to call a standard BAPI, BAPI_PO_CHANGE, to amend
the PO line item .It will update the PO pricing based on the result recorded. This function module will be
assigned to the follow up action.
Follow Up Action: Maintain the Follow up action in the configuration (T code: OQV1) and assign the custom
function module to it.
If the indicator Sync Updt checkbox is set then the dialog transaction and follow-up action are updated
synchronously.
Selection Set: In the selection set attach the follow up action with the UD code. This is will trigger the
processing of the function module (assigned to the follow up action) whenever UD code is taken during the
usage decision of the inspection lot.
© 2011 SAP AG 4
Appendix:
Select the check box ‘Block invoice‘ in the configuration of Control key for QM in procurement to prevent
automatic payment of the invoice when the UD is not been taken for the inspection lot or lot is rejected. Also
select the ‘message mode’ to Defect.
Assign the QM control key configured (in earlier step) to the material master , QM view. This will ensure that
unless UD is been taken for the lot and it is not rejected invoice cannot be processed.
© 2011 SAP AG 5
End to End Template Scenario of Quality Based Invoice

Purchasing
A purchase order is raised to procure the material from vendor. In real life generally the material is planned
through MRP engine or APO and purchase requisitions are converted to Purchase order.
Stock is received against the Purchase order.
© 2011 SAP AG 6
Quality Inspection
Goods receipt will trigger the inspection lot and place the stock in stock type quality (Inspection type -01
should be active for the material to perform quality based invoice)
The quality of the stock is checked and then result is recorded for the inspection lot .In the result recording
the attributes which decides the quality of the product and which further evaluates the price of the stock is
recoded in SAP .
© 2011 SAP AG 7
Usage decision is been taken as per the results recorded for the stock.
Based on the UD code the follow up action is triggered (based on the configuration done in the selected set
as explained earlier) on the save of usage decision.
Follow up action calls the function module which recalculates the price as per the result recorded for the
Inspection lot . Recalculated price update the price in the purchase order. This is the way the purchase order
price is recalculated based on the result recorded/quality of the stock received from the vendor.
© 2011 SAP AG 8
Related Content
Batch Specific UoM
Follow Up Action after UD
For more information, visit the Manufacturing homepage.
© 2011 SAP AG 9
Disclaimer and Liability Notice

This document may discuss sample coding or other information that does not include SAP official interfaces and therefore is not
supported by SAP. Changes made based on this information are not supported and can be overwritten during an upgrade.
SAP will not be held liable for any damages caused by using or misusing the information, code or methods suggested in this document,
and anyone using these methods does so at his/her own risk.
SAP offers no guarantees and assumes no responsibility or liability of any type with respect to the content of this technical article or
code sample, including any liability resulting from incompatibility between the content within this document and the materials and
services offered by SAP. You agree that you will not hold, or seek to hold, SAP responsible or liable with respect to the content of this
document.
© 2011 SAP AG 10

Quality Based Invoice - PDF PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Quality Based Invoice - PDF PDF

Uploaded by

Copyright:

Available Formats

Author: Kaushik Choudhury

Quality Based Invoice – Overview

Baseline Configuration and Master Data

End to End Template Scenario of Quality Based Invoice

Stock is received against the Purchase order.

Disclaimer and Liability Notice

You might also like