Understanding Vendor Invoice Management in SAP

What is Vendor Invoice Management (VIM) VIM is an Opentext Opentext OpenText Documentum is an information management platform , named after the company Documentum that originally developed the software suite. https://en.wikipedia.org › wiki › OpenText OpenText – Wikipedia product which is embedded in the SAP ERP system . It optimises and simplifies the process of receiving, validating, managing, routing and monitoring of vendor invoices and facilitates easy collaboration with stakeholders within the Procure to Pay process.

What is Vendor Invoice Management in SAP?

The VIM workflow process follows a set of standard steps, including validating metadata, checking for duplicates, applying business rules, and posting for payment.

The SAP database is used to validate the metadata or index data. If the validation process fails, it will trigger an exception.

The verified metadata is utilized to verify if the newly received invoice has already been recorded. In case there is a suspicion that the new invoice might be a duplicate of any existing one, it will trigger an exception.

Invoice pre-processing involves the application of business rules to identify any further exceptions that need to be addressed before the invoice can be posted.

During business blue print sessions, swimlane diagrams are created to represent the finalized to-be process. The VIM Baseline Configuration includes a workflow schema as an example of such a process swimlane that is provided.

Understanding Vendor Invoice Management in SAP

Similar to any other solution, Vendor Invoice Management (VIM) consists of specific operational procedures. VIM enhances and streamlines the procedure of receiving, handling, and overseeing invoices for both staff members in charge and vendors involved.

  • The invoice comes via email, fax or paper.
  • It is scanned first.
  • After that, it goes to the archive server where that invoice is automatically archived for documentation and that document is stored and identified by a unique 30-digit alphanumeric number.
  • This document is sent to and stored in SAP VIM and identified by a 12-digit hexadecimal number called the DP number.
  • It sends that document to the ICC server to extract the data in the invoice. Vendor number, currency, registration date, address, etc. After extracting all data such as from this document, it sends it back to SAP VIM.
  • For extraction of data on the invoice, it sends that document to the ICC server. Once it extracts whole data such as vendor number, currency, posting date, address etc., from that document it sends it back to SAP VIM.
  • When there are no exceptions, the invoice is sent via BAPI via MIRO.
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Vendor Invoice Management (VIM) in SAP incorporates an Early Archiving process, which involves receiving the initial invoice, scanning it, and storing it on the archive server. During this process, a DP number is generated for the document. VIM utilizes early archiving to initiate the generation of a DP number as soon as the invoice reaches the Archive Server.

Benefits of Vendor Invoice Management in SAP

VIM includes communication with the vendor, requests for additional information, manual routing, providing and monitoring update reports, among many resolution efforts. Let’s briefly touch on the benefits of VIM for the development and continuation of business processes.

– Reduce the time taken to process invoices and improve operational efficiency.

– Enhance return on investment (ROI) and save costs.

– Decrease cycle times for invoice processing.

– Boost productivity levels.

– Save money by reducing manual data entry and switching tasks.

– Establish a scalable foundation for managing vendor invoices.

Understanding SAP invoice management

SAP Invoice Management by Opentext digitalizes and automates accounts payable processes. Manage and speed invoice processing and workflows and support compliance with national and international regulations. Streamline invoices, order confirmations, and delivery notes. Accelerate processes and leverage machine learning.

Understanding SAP Vendor Invoices

Vendor Invoice Management in SAP is a system that helps companies manage and process invoices from their vendors. When a company purchases items on credit, they receive vendor invoices which need to be recorded and paid. This management system allows for efficient handling of these invoices.

One important aspect of Vendor Invoice Management is the ability to track and clear payments made to vendors. In SAP, there are specific tables like BSAD (Cleared Items for Customers) where documents that have been paid or cleared are stored. This helps keep track of all transactions and ensures accurate financial records.

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Another key feature is the management of open items for vendors, which are tracked in tables like BSID (Open Items for Customers). These open items represent outstanding payments that need to be settled with the vendor. The Vendor Invoice Management system allows companies to easily monitor these open items and ensure timely payment processing.

In simple terms, Vendor Invoice Management in SAP enables businesses to effectively handle vendor invoices by providing tools for recording, tracking, and paying them. It ensures proper financial record-keeping by storing information about cleared payments as well as outstanding balances owed to vendors. By using this system, companies can streamline their invoice processing workflows and maintain good relationships with their suppliers through timely payment settlements.

What does the vendor invoice management system entail?

An integral part of SAP, Vendor Invoice Management for SAP® Solutions includes pre-configured rules, roles and actions to fully automate invoice receipt and posting. Vendor Invoice Management for SAP® Solutions goes beyond finance to cover order confirmations, delivery notes, sales orders and remittance.

The purpose of vim in SAP

SAP Invoice Management by OpenText (VIM) is a comprehensive solution designed to automate the processing of purchase invoices. It caters specifically to large enterprises and shared service centers within corporate groups, where the volume of financial documents processed can reach tens of thousands per month.

Understanding invoice management

Also known as invoice processing, invoice management is the method by which companies track and pay supplier invoices. At its most simple, the process involves receiving an invoice from a third party, validating it as legitimate, paying the supplier, and noting the payment in company records.

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The purpose of managing invoices

Vendor Invoice Management in SAP refers to the management and processing of invoices received from vendors or suppliers. It is also known as invoice processing, which involves several steps such as validating the legitimacy of an invoice, making payments to the supplier, and recording the payment for future reference. This process ensures efficient handling of invoices and streamlines financial transactions between businesses and their vendors/suppliers.

Key features of Vendor Invoice Management in SAP include:

1. Invoice Receipt: Businesses receive invoices electronically or through physical copies from their vendors/suppliers.

2. Validation: The system validates the authenticity and accuracy of each invoice by checking various parameters such as vendor details, purchase order information, pricing agreements, etc.

3. Approval Workflow: Invoices are routed through a predefined approval workflow based on specific criteria like amount thresholds or departmental approvals.

4. Payment Processing: Once approved, payments are processed either manually or automatically using electronic payment methods like bank transfers or checks.

7. Reporting and Analytics: The system provides comprehensive reporting capabilities that enable businesses to analyze spending patterns, track outstanding payments, monitor vendor performance metrics, etc., helping them make informed decisions regarding procurement processes.

By implementing Vendor Invoice Management in SAP effectively, businesses can streamline their accounts payable processes while ensuring compliance with regulatory requirements and improving overall efficiency in managing vendor invoices.