PUBLIC

Document Version: 2311 – 2024-01

Invoicing and Payment Process Guide

SAP Ariba Buying and Invoicing
SAP Ariba Invoice Management
© 2023 SAP SE or an SAP affiliate company. All rights reserved.

SAP Ariba Contract Invoicing

THE BEST RUN

Content

Invoicing and Payment Process Guide. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Invoicing and Payment Workflow in SAP Ariba Solutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Advance Payment Workflow. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Contract-Based Invoicing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
SAP Business Network-Validated Contract Invoicing Workflow. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Services Invoicing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Services Invoicing Workflow in SAP Ariba Solutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Comparison of Services Invoicing Features in SAP Ariba Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Service Orders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Service Sheets and Service Sheet Validation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Service Invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Invoicing Process for Brazil. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Workflow for the Invoicing Process for Brazil. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Invoicing Process for Japan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Sample Currency Information File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Sample Tax Type File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Sample Tax Type Map File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Sample Tax Code LookUps. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Sample Tax Code Lookup Field Map. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Sample Supplier Tax Registration Number File. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Italy SDI Invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Workflow for SDI Invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Adding an Approval Rule for SDI Invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31

Evaluated Receipt Settlement and Automatic Invoicing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Source of Data for Automatically-Generated Invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Evaluated Receipt Settlement Workflow. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Non-PO Invoicing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

ERP Invoice Copies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Invoice Cancellation by Suppliers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36

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 Taxes on Invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Charges and Discounts on Invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

PO-Based Defaulting of Taxes, Charges, and Discounts on Manual Invoices. . . . . . . . . . . . . . . . . . 41

Price-Adjustment Debits and Credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Invoicing Workflow for Price-Adjustment Debits and Credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Enablement of Price Adjustment Debits and Credits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Non-PO Invoices for One-Time Vendors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

Workflows for One-Time Vendor Non-PO Invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
One-Time Vendors in SAP Ariba Solutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Invoices from SAP Central Invoice Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Creating an Approval Rule for Invoices from SAP Central Invoice Management. . . . . . . . . . . . . . . . . . . . 63

Invoice Reconciliation Processes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

Automatic Reconciliation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Re-Reconciliation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
Auto-Reconciliation of Invoices When Full Credit Is Received. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .69
Two-Way Invoice Matching in SAP Ariba Invoice Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Tax and Charge Exception Calculations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
Supplier Bank Details Processing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
Goods Receipt-Based Invoice Verification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Workflow for Goods Receipt-Based Invoice Verification in SAP Ariba Buying and Invoicing . . . . . . . . . 75
Workflow for Goods Receipt-Based Invoice Verification in SAP Ariba Invoice Management . . . . . . . . . 79
Workflows for Goods Receipt-Based Invoice Verification Without Ship Notice IDs. . . . . . . . . . . . . . . .82

Payment Processes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
External System Payment Model. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
Invoices from Subcontractors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Payment Terms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Discount Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
Discount Process with OK-to-Pay File Integration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
Discount Process with for CXML Integration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

Payment Document Status Flow. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .92

Invoice and Invoice Reconciliation Status Flow. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .95

Advance Payment Status Flow. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

SAP Ariba-Controlled Parameters for Creating and Managing Invoices. . . . . . . . . . . . . . . . . . . . 101

Self-Service Site Configuration Parameters for Creating and Managing Invoices. . . . . . . . . . . . . 106

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 Allow editing of taxes and charges on invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
Generate invoices for evaluated receipt settlement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107
Enable evaluated receipt settlement and automatic invoicing for service items . . . . . . . . . . . . . . . 108
Apply account determination rules to ERS invoices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
Generate short invoice numbers for ERS invoices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
Empty Reference Date field for contract punch-in items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
Support price-adjustment credit and debit memos . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110
Get latest catalog prices for contract-based invoices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
Allow split accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
Allow export and import of accounting distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
Copy tax codes from invoice to IR document . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
Commodity code for non-catalog invoice line items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
Allow invoice number reuse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
Send attachments associated with documents to ERP system . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
Default Requester for Invoices from Invoice API. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115

SAP Ariba-Controlled Parameters for Reconciling Invoices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117

Self-Service Site Configuration Parameters for Reconciling Invoices. . . . . . . . . . . . . . . . . . . . . . .121

Include accounting info for charge lines in IR cXML . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
Invoice exception types for accrued tax payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
Generate default withholding tax at the header level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
Always display Reject button for IRs in Approving . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
Require reason codes for invoice rejection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Prevent dispute of invoices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Prevent acceptance of specific invoice exceptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Require comments to supplier for invoice rejection. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
Require invoice reconciliation in the ERP system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
Remit To on invoice reconciliations is from invoice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
Enable goods receipt-based invoice verification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
Match receipts to invoices without ship notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
Allow edits to matched quantity in receipt matching . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130
Days to delay creating an IR document . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
Third-party tax calculation for buying and invoicing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
Enhanced third-party tax calculation for invoicing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
Enhanced warnings for force actions on invoices and payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
Use receipt unit price to validate invoice unit price. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133

SAP Ariba-Controlled Parameters for Managing Payment Documents. . . . . . . . . . . . . . . . . . . . . 135

Self-Service Site Configuration Parameters for Managing Payment Documents. . . . . . . . . . . . . . 138

Process tax accrual payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .138

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 ERP errors that trigger auto-resend of documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138

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Invoicing and Payment Process Guide

This guide is for SAP Ariba buyer users and administrators seeking a general understanding of workflows and
processes for invoices and payments.

Buyers process invoices from suppliers in order to pay for goods and services.

This guide applies to:

• SAP Ariba Buying and Invoicing

• SAP Ariba Invoice Management
• SAP Ariba Contract Invoicing

Related Guides

Creating and Managing Invoices

Reconciling Invoices

Managing Payment Documents

Invoicing Data Import and Administration Guide

Tax and Charge Configuration

Managing Contract Compliance

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6 PUBLIC Invoicing and Payment Process Guide
Invoicing and Payment Workflow in SAP Ariba
Solutions

Although your company's specific invoice workflow depends on your site's configuration and your company's
business processes, SAP Ariba invoicing solutions SAP Ariba Buying and Invoicing and SAP Ariba Invoice
Management support a common general process.

1. Depending on your site enablement options and the invoice process flow configured for your site, an invoice is
created:
• In your external ERP system and loaded into your SAP Ariba solution through SAP Business Network. This
option is only available if your solution includes SAP Ariba Invoice Management.
• By the supplier on SAP Business Network and transmitted to your SAP Ariba solution.
• Manually by a user in your site using a paper invoice sent by a supplier.
• Manually by a supplier punching into your site from their SAP Business Network account to create a
contract-based invoice.
• By an invoice conversion service (ICS) provider that converts paper invoices to electronic format and
sends them through SAP Business Network to your site.
• Automatically by SAP Ariba Buying and Invoicing for procurement transactions from supplier locations
that are enabled for Evaluated Receipt Settlement (ERS) and automatic invoicing.
When an invoice is submitted in any of these ways, your SAP Ariba invoicing solution creates an approvable
invoice document.
2. When the invoice is approved, two associated approvable documents are automatically created:
• An invoice reconciliation (IR) document, which invoice exception handlers use to resolve any discrepancies
between the invoice, associated orders or contracts, and receipts, to validate accounting and other
information.
• A payment request document, which is used to generate a payment once the invoice is reconciled.
3. If any advance payments have been made for the purchase orders corresponding to the invoice, a payment
manager is added to the approval flow of the invoice reconciliation document. The payment manager adjusts
these advance payments against the invoice.
4. The automatic reconciliation processor tries to match the IR to existing purchase orders, contracts, and
receipts, and then validates them according to your site's configuration. At this point, one of the following two
processes occurs:
• If there are no discrepancies in the IR, or if the discrepancies are within your company's pre-configured
tolerances, the IR is sent directly to the responsible group or person for approval to pay the supplier.
• If there are unacceptable discrepancies in the IR, they are displayed as exceptions on the IR document and
must be manually reconciled. One or more exception handlers resolve exceptions, and the IR is sent to the
responsible group or person for approval to pay the supplier.
If your site is configured to handle final approval of the IR, the invoice moves to Reconciled status at this point.
If your site is configured to send the IR for final reconciliation and approval in your ERP system, the invoice
moves to Reconciling status until that final approval is received.
5. After the invoice is reconciled, the payment is scheduled through the payment request.

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Related Information

Invoice and Invoice Reconciliation Status Flow [page 95]

Payment Document Status Flow [page 92]
Advance Payment Status Flow [page 99]

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Advance Payment Workflow

The following steps explain the workflow for advance payments. SAP Ariba Buying and Invoicing can be configured
to support header-level and line-level advance payments.

1. A user creates a requisition for material items. A purchase order is generated after the requisition is fully
approved.
2. A payment agent or payment manager creates and submits an advance payment document for the purchase
order. The status of the advance payment document changes from Composing to Submitted.
3. SAP Ariba Buying and Invoicing generates an approval flow for the advance payment document if the approval
process for advance payments is enabled.
4. Approvers approve the advance payment document. The status of the advance payment document changes to
Approved.
5. The approved advance payment document is exported to the external systems in one of the following ways:
• SAP Ariba Buying and Invoicing exports the advance payment documents to external systems using the
web services channel.
• A customer administrator exports the advance payment documents to a CSV file, which is used to import
the advance payment documents into the external systems.
6. SAP Ariba Buying and Invoicing receives the ERP payment request ID for the exported advance payment
documents, in one of the following ways:
• The external system sends the payment request IDs to SAP Ariba Buying and Invoicing using the web
services channel.
• The customer administrator imports advance payment IDs generated by the external system, using CSV
files.
The status of the advance payment documents changes to Paying.
7. The external system processes the payment and sends the remittance information to SAP Ariba Buying and
Invoicing.
8. SAP Ariba Buying and Invoicing changes the status of the advance payment document to Paid when the entire
payment is made for it. (For line-level advance payments, the status changes to Paid when the payment is
processed for all line items on the advance payment document.)
Alternatively, if the site is not integrated with an external system, the payment manager manually marks an
advance payment in Approved or Paying state as Paid by clicking the Force Pay button on the advance
payment page.
9. The supplier sends an invoice to the buyer.
10. SAP Ariba Buying and Invoicing generates an invoice reconciliation document for the invoice.
11. The payment manager adjusts the advance payment amount against the invoice amount in the invoice
reconciliation document.
12. The invoice manager reconciles the invoice.
13. SAP Ariba Buying and Invoicing generates a payment request for the reconciled invoice. This payment request
file has information about the advance payments adjusted against the invoice.
The amount of the payment request is the total approved invoice amount, not the total invoice amount minus
the advance payment. The ERP system handles the deduction when processing the payment. Also, payment
requests on the invoice Reference tab don't indicate the use of advance payments.
14. The system exports the payment request to the external system for payment processing.

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Line-item credit memos and advance payments

If the supplier sends a line-item credit memo against an invoice that was adjusted for an advance payment, SAP
Ariba Buying and Invoicing doesn't reverse the adjustment. There are no accumulator adjustments for advance
payments. Accumulators on invoices, credit memos, and IR documents have nothing to do with advance payments.

Related Information

Advance Payment Status Flow [page 99]

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Contract-Based Invoicing

In contract-based invoicing, suppliers punch into your SAP Ariba invoicing solution to create invoices based on the
contracts you have with them.

In contract-based invoicing, suppliers create invoices from no release item-level, commodity-level, customer
catalog-level, or supplier-level contract by punching into your site from SAP Business Network. Your site must
be configured to allow contract-based invoicing. If it is, suppliers use the contract-based invoicing workflow to
create an invoice for all contracts except for blanket purchase orders that do not allow contract invoicing.

When suppliers create contract-based invoices, they can enter an optional email address in the Sold To Email
Address field. This address is used to set the Requester (On Behalf Of) on the invoice and invoice reconciliation
documents. This field is validated, and suppliers cannot submit an invoice with an invalid Sold To Email Address
value.

There are two different ways suppliers can create contract-based invoices, and the method they use depends on
your site's configuration:

• In collaborative invoicing, suppliers punch into your site from SAP Business Network to create the invoice.
• In SAP Business Network-validated contract invoicing, suppliers create the invoice in their SAP Business
Network accounts and punch into your site only to retrieve the contract and add contract lines.

Contract-Based Invoicing from Blanket Purchase Orders

Suppliers can create contract-based invoices against blanket purchase order contracts in some cases.

With blanket purchase order contracts (BPOs), contract agents must specify the Allow invoicing against the
contract option in order to allow contract-based invoicing. If this option is not specified, suppliers can create
invoices using PO-Flip (purchase order-to-invoice flip) on SAP Business Network for no-release order item-level
BPOs. For no-release order supplier-, commodity-, or customer catalog-level BPOs, they must create a non-PO
invoice on SAP Business Network and provide the contract ID as a reference.

SAP Business Network-Validated Contract Invoicing Workflow [page 11]

SAP Business Network-Validated Contract Invoicing

Workflow
In SAP Business Network-validated contract invoicing, suppliers create invoices on SAP Business Network but
punch into the SAP Ariba invoicing solution to retrieve the contract and add items.

The following general steps describe the supplier workflow for SAP Business Network-validated contract invoicing,
which must be enabled in your site.

• Suppliers initiate the contract-based invoice creation from SAP Business Network by selecting the customer
for which they are creating the invoice.

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• SAP Business Network automatically transfers the supplier to your invoicing site, where the supplier selects
the contract and enters the invoice number, invoice date, and the Sold To Email Address (email of the person
who requested the goods or services). Depending on the contract specifications, the Sold To Email Address
might be defaulted from the contact person on the contract.
• The supplier user is then returned to their familiar Create Invoice page to enter additional invoice header
information.
• To add items to the invoice, the supplier is again transferred to your site to select the items from the customer
catalog. If allowed, they can also add non-catalog items.
• Depending on the contract configuration, the supplier might enter accounting information.
• The invoice line items are validated against the contract line items, and the contract's pricing terms are
applied. If any discrepancies are found, the supplier receives an error message prompting them to correct the
information.
• The supplier is returned to SAP Business Network.
• If the supplier needs to make changes to any of the line items on the invoice, they are transferred back to your
site.
• If allowed by your SAP Business Network business rules, the supplier can change the unit price on the invoice.
This effectively overrides the pricing terms defined in the contract for the items. For example, if a customer
catalog-level contract is defined with a 10% discount for all items, and the supplier changes the unit price of an
item on the invoice, that price will be the final price used on the invoice. Depending on your invoice exceptions
configuration and tolerance settings, this situation might lead to an invoice exception that will require an
exception handler to resolve the discrepancy before the invoice can be approved for payment.
• On SAP Business Network, the supplier completes the invoice by adding other header fields and adds any
comments, attachments, tax, shipping documents, or special handling line items either at the invoice header
or at the line item level.
• Before the supplier submits the invoice, they can always return to your site to retrieve additional items, change
a contract header field such as the Sold To Email Address, or edit or delete existing line items on the invoice.
• When the supplier submits the invoice, SAP Business Network validates it against the invoicing business rules
set in your SAP Business Network account, adds a digital signature if required, and sends it to your site for
reconciliation.

Parent topic: Contract-Based Invoicing [page 11]

Invoicing and Payment Process Guide

12 PUBLIC Contract-Based Invoicing
Services Invoicing

Services invoicing is a set of features and a workflow that allow your company to track, manage, and approve how
suppliers fulfill and invoice orders for services.

Services Invoicing Workflow in SAP Ariba Solutions [page 13]

Comparison of Services Invoicing Features in SAP Ariba Solutions [page 14]

Service Orders [page 17]

Service Sheets and Service Sheet Validation [page 19]

Service Invoices [page 20]

Services Invoicing Workflow in SAP Ariba Solutions

The services invoicing workflow involves the following general steps between the buyer and supplier.

1. Depending on the SAP Ariba solution, one of the following buyer actions apply:
• (SAP Ariba Invoice Management) The buyer sends an approved purchase order with at least one service
line (a line that requires a service sheet) from an integrated ERP system to SAP Business Network.
SAP Business Network receives the order, sends it to the supplier, and sends a copy order to SAP Ariba
Invoice Management. The copy order triggers updates to accumulators on any associated contracts.
• (SAP Ariba Buying and Invoicing) The buyer creates a service requisition for a service item (an item that
requires a service sheet). After the requisition is fully approved, SAP Ariba Buying and Invoicing sends an
approved purchase order to the supplier.
2. On the SAP Business Network, the supplier optionally confirms the purchase order and then creates a service
sheet for it. The supplier can add items to the service sheet in the following circumstances:
• If your site is configured for supplier punchin, the supplier can punch in to add contract/catalog items. If
your site allows it, the supplier can also add non-catalog items in the service sheet shopping cart during
punchin. Your site might also allow suppliers to edit accounting information for those items.
• If your site is not configured for supplier punchin, but your SAP Business Network buyer account business
rule settings allow it, the supplier can add ad hoc items to the service sheet on the SAP Business Network.
3. On the SAP Business Network, the supplier submits the service sheet and, if it passes validation, it enters the
approval flow.
4. If necessary, the approvers in the approval flow edit accounting information for service sheet lines and approve
the service sheet.
5. (If approval in an external ERP system is not required) Approvers approve the service sheet and the status
of the service sheet changes to Processed. The SAP Ariba solution sends a status update to SAP Business
Network.
6. (If approval in an external ERP system is required) One of the following actions is applicable:
• (For SAP Ariba Buying and Invoicing) After approval, SAP Ariba Buying and Invoicing sends the approved
service sheet to the ERP system for external approval and the status of the service sheet changes to
Awaiting External Approval. After approval in the ERP system, the status of the service sheet changes to
Processed and SAP Ariba Buying and Invoicing sends a status update to SAP Business Network.

Invoicing and Payment Process Guide

Services Invoicing PUBLIC 13
 • (For SAP Ariba Invoice Management) After approval, SAP Ariba Invoice Managementsends the service
sheet to the external ERP system for external approval and the status of the service sheet changes to
Awaiting External Approval. The ERP system sends a status update to SAP Business Network, which
sends the status update back to Ariba Invoice Professional. The service sheet status is then Processed.
7. On SAP Business Network, the supplier invoices one or more approved service sheets. SAP Business Network
sends the invoice to the SAP Ariba invoicing solution, where the invoice follows the regular invoicing and
payment process [page 7].

If a service sheet is rejected at any point before it is fully approved, either during validation or by an approver in the
SAP Ariba solution or the external ERP system, the supplier can edit and resubmit the rejected service sheet on the
SAP Business Network using a different service sheet number. At that point, the SAP Business Network sends the
service sheet back to the SAP Ariba solution and it enters the validation and approval process again.

Parent topic: Services Invoicing [page 13]

Related Information

Comparison of Services Invoicing Features in SAP Ariba Solutions [page 14]

Service Orders [page 17]
Service Sheets and Service Sheet Validation [page 19]
Service Invoices [page 20]
Invoice and Invoice Reconciliation Status Flow [page 95]

Comparison of Services Invoicing Features in SAP

Ariba Solutions
SAP Ariba Buying and Invoicing and SAP Ariba Invoice Management support supplier punchin and full service sheet
validation and approval, while SAP Ariba Contract Invoicing supports supplier punchin and more limited validation
for service sheet creation.

Services invoicing includes item matching between orders, customer catalogs and contracts; order accumulation
against contracts; and service sheet accumulation against orders. These features keep orders and invoices within
contract limits, within budget, and using contract pricing.

The following table briefly describes the different services invoicing features provided by each SAP Ariba solution:

SAP Ariba Buying and Invoic-

ing and SAP Ariba Invoice
Feature SAP Ariba Contract Invoicing Management Notes

Service orders

Invoicing and Payment Process Guide

14 PUBLIC Services Invoicing
 SAP Ariba Buying and Invoic-
ing and SAP Ariba Invoice
Feature SAP Ariba Contract Invoicing Management Notes

Support for service orders X X For SAP Ariba Invoice Man-

with planned or unplanned agement, service orders are
service lines always created in integrated
ERP systems

Service Sheets

Support for service sheets X X Service sheet tolerances and

rules are set in the SAP Busi-
ness Network buyer account

Suppliers can add non-catalog X X Set using configuration pa-

(unplanned) items to service rameters in the SAP Ariba in-
sheets via punchin from SAP voicing solution
Business Network

Suppliers can add file attach- X X Service sheet rules are set
ments to service sheets in the SAP Business Network
buyer account and a site con-
figuration parameter is ena-
bled for the SAP Ariba solu-
tion.

Service sheet price validation X X

against matching contracts
and customer catalogs

Service sheet quantity and X X Set using transaction rules

amount tolerances for plan- in the SAP Business Network
ned items buyer account

Service sheet price tolerances X X Set using transaction rules

for planned items on service in the SAP Business Network
purchase orders buyer account

Service sheet price tolerances X X Set using configuration pa-

for unplanned items added rameters in the SAP Ariba sol-
from contracts or customer ution
catalogs

Invoicing and Payment Process Guide

Services Invoicing PUBLIC 15
 SAP Ariba Buying and Invoic-
ing and SAP Ariba Invoice
Feature SAP Ariba Contract Invoicing Management Notes

Workflow routing (including X

email notifications) for:

• Service sheet approvals

to accounts payable or
business users
• Expired contracts
• Invalid commodity codes
or units of measure on
service sheets

Invoices

Suppliers can submit contract X X Validation for automated sup-

invoices (including contract pliers in SAP Ariba Contract
validation for automated sup- Invoicing is through contract
pliers) exceptions set to auto-reject

Suppliers can submit contract X X Validation for automated sup-

invoices based on blanket pur- pliers in SAP Ariba Contract
chase orders (including con- Invoicing is through contract
tract validation for automated exceptions set to auto-reject
suppliers)

Suppliers can submit service X X

invoices created from service
sheets

Buyers can submit contract- X

based invoices

Workflow routing (including X

email notifications) for:

• Invoice exception types

against purchase orders
• Invoice exceptions to ac-
counts payable and busi-
ness users
• Invoice approvals to ac-
counts payable or busi-
ness users

Other

Invoicing and Payment Process Guide

16 PUBLIC Services Invoicing
 SAP Ariba Buying and Invoic-
ing and SAP Ariba Invoice
Feature SAP Ariba Contract Invoicing Management Notes

Analytical reporting, including X

prepackaged and custom re-
ports

Field Engineer, Field Service X

Administrator, Service Sheet
Editor, and Reporting
Manager global user groups

Data import task for importing X X

contracts as CSV files

Accounting master data and X

default accounting

Support for multi-ERP config- X X Requires additional SAP Ariba

urations services

Parent topic: Services Invoicing [page 13]

Related Information

Services Invoicing Workflow in SAP Ariba Solutions [page 13]

Service Orders [page 17]
Service Sheets and Service Sheet Validation [page 19]
Service Invoices [page 20]
Contract-Based Invoicing [page 11]
Non-PO Invoicing [page 34]

Service Orders
Service orders are purchase orders that include at least one line that requires a service sheet.

Service orders have special characteristics such as maximum amounts, contract matching, and planned or
unplanned service lines.

Invoicing and Payment Process Guide

Services Invoicing PUBLIC 17
Maximum Amounts for Service Order Lines

Service orders can include a maximum amount at the line level. Maximum amounts are budgeting tools that allow
suppliers to exceed the regular line amount by a specific amount (if the maximum amount is higher than the line
amount), or can enforce the line amount (if the maximum amount is the same as the line amount). Maximum
amounts are always hidden from suppliers on SAP Business Network but are visible to members of the Field
Engineer group in your SAP Ariba Buying and Invoicing solution. Suppliers are not able to submit service sheets
that exceed a line's maximum amount.

 Note

(If your site is not enabled for external approvals for service sheets) For service orders that do not include a
maximum amount for a line item, SAP Ariba Buying and Invoicing considers the order line-item amount as the
maximum amount to determine whether suppliers can submit service sheets.

Contract Matching for Service Orders

SAP Ariba Buying and Invoicing matches service orders only to associated contracts, determine whether or not
order line items match existing customer catalogs for the contract, and identify them as customer catalog or
non-catalog items.

Planned and Unplanned Service Order Lines

Service lines can be planned, meaning that they describe specific pieces of work and have set quantities and
amounts. For service orders associated with a release contracts, all planned lines that match the contract
accumulate against that contract at the header and line level.

Service lines can also be unplanned, meaning that they have a mandatory minimum amount but are otherwise
open-ended. For unplanned lines, all accumulation against purchase order limits are calculated based on subtotals;
there is no checking on unit price or quantities.

 Note

You can enable the Validate service sheet maximum amount limit against unplanned items
only (Application.ServiceSheet.SupportServiceOrdersMaxAmountForUnplannedItemsOnly)
parameter to validate the service sheet maximum amount limit against unplanned service items only. For
more information, see Validate service sheet maximum amount limit against unplanned items only.

Parent topic: Services Invoicing [page 13]

Related Information

Services Invoicing Workflow in SAP Ariba Solutions [page 13]

Invoicing and Payment Process Guide

18 PUBLIC Services Invoicing
Comparison of Services Invoicing Features in SAP Ariba Solutions [page 14]
Service Sheets and Service Sheet Validation [page 19]
Service Invoices [page 20]

Service Sheets and Service Sheet Validation

A service sheet is a document that suppliers performing a service create in order to describe that service. After a
supplier submits a service sheet, it is validated and must be approved in the SAP Ariba solution or an integrated
ERP system.

Suppliers can only invoice service orders based on approved service sheets.

SAP Ariba Buying and Invoicing and SAP Ariba Invoice Management solutions support full validation and approval
of service sheets. SAP Ariba Contract Invoicing only validates service sheets for contract and customer catalog
pricing. SAP Ariba invoicing solutions automatically reject service sheets during validation for the following
reasons:

• The associated order does not exist, or does exist but is in a state other than Ordered or Ordered with Errors.
• The service sheet includes an item from a contract but the price exceeds configured tolerances for the contract
or customer catalog price.
• The service sheet references a different contract than the associated order.
• The release contract associated with the order has expired after the order was made but before the service
sheet was submitted, or the release contract associated with the service sheet has expired after the item was
added to the service sheet but before it was submitted. In SAP Ariba Procurement solutions, you can configure
contract exceptions to route the service sheet to exception managers for handling rather than automatically
rejecting it.
• The service sheet contains non-catalog items and your site is not configured to allow suppliers to add non-
catalog items to service sheets.
• The service sheet is not associated with a contract but contains a customer catalog item, and the price is
higher than tolerances configured for the catalog price.

Parent topic: Services Invoicing [page 13]

Related Information

Services Invoicing Workflow in SAP Ariba Solutions [page 13]

Comparison of Services Invoicing Features in SAP Ariba Solutions [page 14]
Service Orders [page 17]
Service Invoices [page 20]

Invoicing and Payment Process Guide

Services Invoicing PUBLIC 19
Service Invoices
Service invoices are based on approved service sheets for service orders and there must be at least one approved
service sheet.

Typically, suppliers create service invoices in their SAP Business Network accounts and submit those invoices
through SAP Business Network, but users can also create service invoices directly in the SAP Ariba invoicing
solution.

After a service invoice is approved, the SAP Ariba invoicing solution creates an invoice reconciliation document for
the invoice and the invoice reconciliation document moves through the reconciliation process defined for invoices
in your site.

Parent topic: Services Invoicing [page 13]

Related Information

Services Invoicing Workflow in SAP Ariba Solutions [page 13]

Comparison of Services Invoicing Features in SAP Ariba Solutions [page 14]
Service Orders [page 17]
Service Sheets and Service Sheet Validation [page 19]

Invoicing and Payment Process Guide

20 PUBLIC Services Invoicing
Invoicing Process for Brazil

The invoicing process for Brazil enables buyers in Brazil to view invoices in their standard SEFAZ-approved formats
and to export invoice attachments to the external systems. It also enables buyers to view correction information
received for invoices.

Brazilian tax authority Secretaria da Fazenda (SEFAZ) mandates legal compliance on all commercial transactions
between suppliers and buyers. SEFAZ also mandates the use of defined standard electronic invoices to standardize
the transaction documents used between the tax authority and the tax payers (suppliers and buyers).

To enable buyers to adhere to SEFAZ's requirements, SAP Ariba provides the following invoicing capabilities to
buyers in Brazil:

• View the following types of electronic invoices:

• Nota Fiscal Eletrônica (NFe): Goods invoice
• Conhecimento de Transporte (CTe): Shipping, handling, and transportation invoice
• Nota Fiscal de Serviço Eletrônica (NFSe): Services invoice
• View the following invoice attachments:
• XML: The SEFAZ-approved electronic invoice in XML format is attached to the invoice and invoice
reconciliation document.
• PDF: This is a human-readable, simplified representation of a Brazilian electronic invoice and contains
essential transaction details such as sender, recipient and numeric barcode. The PDF format of an
NFe is called Documento Auxiliar do Nota Fiscal Eletrônica (DANFe), that for a CTe is
called Documento Auxiliar do Conhecimento de Transporte (DACTe), while that for an NFSe
is called Documento Auxiliar do Nota Fiscal de Serviço Eletrônica (DANFSe). This format is
displayed as an attachment as well as a thumbnail in the invoice and invoice reconciliation document.
• Receive an email notification when an electronic invoice addendum, known as Carta de Correção
Eletrônica (CCe), is received for the invoice. The correction letter describes some auxiliary changes
(changes that do not alter the tax, quantity or total amount) required to the submitted invoice. This email
notification is sent to the requester of the invoice. If the requester's information is not available, the notification
is sent to the Invoice Administrator and Invoice Manager groups.
• View the change description extracted from the CCe in the Invoice Addendum section in invoice and invoice
reconciliation documents.
• View the XML file for the CCe and other attachments sent for the CCe in the Invoice Addendum section in
invoice and invoice reconciliation documents.
• Export the invoice attachments to the external system, as part of the payment requests generated for the
reconciled invoice. This is supported only for the Web Services channel.

Related Information

Workflow for the Invoicing Process for Brazil [page 22]

Invoicing and Payment Process Guide

Invoicing Process for Brazil PUBLIC 21
Workflow for the Invoicing Process for Brazil

The workflow for the electronic invoicing process of Brazil is very similar to the general invoicing workflow. Some
additional steps are required to adhere to SEFAZ's invoicing requirements and to handle correction letters received
for invoices.

Workflow for Invoice Attachments

The following steps describe the workflow for viewing electronic invoices and their attachments:

1. SAP Business Network sends an invoice along with its SEFAZ-approved XML and PDF formats attached to it to
the buyer's external ERP system.
2. Users can review the attachments in the Attachments section. The PDF format is also displayed as a
thumbnail in the header section of the invoice.
3. After the invoice is approved, the invoice reconciliation document for the invoice is generated and the invoice
attachments is copied to the invoice reconciliation document.
4. Users who have the required permissions resolve the invoice exceptions, if any, and reconcile the invoice.
5. The SAP Ariba invoicing solution generates a payment request for the reconciled invoice.
6. The payment request along with the invoice attachments is exported to the external system for payment.

Workflow for Correction Letters

The following steps describe the workflow for correction letters received for invoices:

1. Suppliers submit a correction letter (CCe) for an invoice to SAP Business Network. The CCe can contain two
attachments – the original CCe in its XML format and the CCe in its PDF format. Though the CCe contains
a description of the changes required to the invoice, the invoice itself does not get modified when a CCe is
received.
2. SAP Business Network extracts the change description from the CCe and creates a notification request
document in cXML format. This notification request contains the original XML format of the CCe as an
attachment and any other attachments that are part of the CCe.
3. SAP Business Network sends this notification request to the SAP Ariba invoicing solution.
4. The SAP Ariba invoicing solution extracts the change description and attachments from the notification
request and displays them in the Invoice Addendum section of the invoice.
5. The SAP Ariba invoicing solution sends an email notification to the requester of the invoice. If the requester's
contact information is not available, an email is sent to the Invoice Administrator and Invoice Manager
groups.
6. The SAP Ariba invoicing solution generates an invoice reconciliation document for the invoice. The invoice
addendum is copied to the invoice reconciliation document.
7. Users who have the required permissions resolve the invoice exceptions, if any, and reconcile the invoice.
8. The SAP Ariba invoicing solution generates a payment request for the reconciled invoice.

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22 PUBLIC Workflow for the Invoicing Process for Brazil
 9. The payment request along with all the invoice attachments is exported to the external system for payment.
The invoice attachments exported to the external system include the attachments of the CCe.

For information on viewing invoice attachments and addendums, see Finding Invoices.

Related Information

Invoicing and Payment Workflow in SAP Ariba Solutions [page 7]

Invoicing Process for Brazil [page 21]

Invoicing and Payment Process Guide

Workflow for the Invoicing Process for Brazil PUBLIC 23
Invoicing Process for Japan

The tax authority in Japan will follow a new invoicing method called as TEKIKAKU SEIKYUSHO TOU HOZON
HOUSHIKI, and it is effective October 1, 2023. SAP Ariba Buying and Invoicing now provides an enhanced method
for tax calculation to support the new invoicing method in Japan. Thus, invoices created in both these systems
will have the tax summarization calculated at the header level during invoice creation. The tax rounding (round up,
round half-up, round down) occurs only once per tax rate in a single invoice.

Supplier organizations need to register with the tax authority in Japan. The tax authority issues a unique ID for
each supplier called as Tax Registration Number. This Tax Registration Number enables the buyers and suppliers
using the SAP Ariba Buying and Invoicing systems to continue business transactions and identify the business
transactions with qualified invoices to claim VAT returns.

During invoice creation, the tax summarization of the taxes captured at the line level are displayed at the header
level. Individual items in the invoice are grouped based on the tax type.

For example, in an invoice, the tax rate for the first two line items is SalesTax_8% and the tax rate for the next two
line items is SalesTax_10. The tax summarization displays two header level tax lines for the four line items. Each line
indicates the calculation based on each tax type.

Suppliers who are registered with the Japanese tax authority will have a Tax Registration Number. The SAP Ariba
Buying and Invoicing system qualifies a supplier as a qualified supplier if the Tax Registration Number is displayed
on the invoice. Ensure that you as a buyer update the supplier master data into the system.

Prerequisite

• Buyer Prerequisite
• The parameter EnableJapanConsumptionTax
( Application.Procure.EnableJapanConsumptionTax ) must be set to Yes. This parameter is self-
service.
• If you are using SAP ERP, then the tax codes used in the ERP system and SAP Ariba Buying and Invoicing
system must be the same. For more information, see SAP Note 3067001 . If you are using additional
tax codes in your ERP system based on the purchase to differentiate your purchases between a Qualified
Supplier and a nonqualified supplier, then you need to create a custom field named Qualified Supplier
in SAP Ariba Buying and Invoicing to switch tax code automatically based on the record existence/
non-existence in Supplier Tax Registration Number master and then you need to update the following
configuration files into the system for transactions.

 Note

Contact your SAP Ariba administrator to import the configuration files.

• CurrencyInfo.csv, click here [page 27] to view a sample file.

• TaxType.csv, click here [page 27] to view a sample file.
• TaxTypeMap.csv, click here [page 28] to view a sample file.

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24 PUBLIC Invoicing Process for Japan
 • TaxCodeLookup.csv, click here [page 28] to view a sample file. You need to have one additional
customization column in the TaxCodeLookUp file to identify the qualified supplier.
• TaxCodeLookupFieldMapping.csv, click here [page 29] to view a sample file.

 Note

If you do not want to differentiate your transaction with a Qualified Supplier and a nonqualified supplier,
you do not need to update the configuration files.

• The tax type has unique tax rates. Ensure that the tax type and tax rates are preconfigured in the SAP Ariba
Buying and Invoicing system.
• You must have a custom field created in the system to identify a qualified and a non-qualified supplier. For
more information, contact your SAP Customer Success Partner or you can create the custom field as
mentioned below.

 Note

Incase of a non-qualified supplier, you do not need to create the custom field.

For documentation purpose, the custom field is named as Qualified Supplier. You can customize the name
of the field as required.
• Supplier GST ID - In a PO-FLIP scenario, the value of this field is copied from the invoice document
sent from the supplier.
In ERS and paper invoice scenario, the value of this field is copied from the Supplier Tax Registration
master data in SAP Ariba Buying and Invoicing. In this case, you can populate the supplier's Tax
Registration Number by selecting the supplier contact details. You can edit the value in this field only
when using the paper invoice scenario.
The Supplier GST ID field is available under the Header Information GST Details section
of the invoice creation page once you enable the parameter EnableJapanConsumptionTax
( Application.Procure.EnableJapanConsumptionTax ).
• Qualified Supplier - This custom field appears in all the line items. The system displays Yes if the
supplier Tax Registration Number exists in the SellerTaxRegistrationNumber field. Else, the system
displays No.

Restrictions

• SAP Ariba restricts adding different tax rates for the same tax type at the header level by default. Review the
prerequisites to configure tax type and rate for header level usage.

Workflow of Invoices

The following description explains how the taxes are handled in the SAP Ariba Buying and Invoicing system.

• Scenario 1 - Paper / Self-billing invoices

You need to copy all the tax details from the paper invoice into the system and then add the header level taxes
manually.

Invoicing and Payment Process Guide

Invoicing Process for Japan PUBLIC 25
• Scenario 2 - ERS invoices
The system summarizes the tax calculations automatically at the header level and the taxes are group based
on the tax type.

 Note

The tax type have unique tax rates.

• Scenario 3 - Invoices originating from SAP Business Network

The summary of the taxes of a SAP Business Network invoice gets copied to header level taxes on the SAP
Ariba Buying and Invoicing invoice.

Overview of User Interface Changes

Once you enable the parameter EnableJapanConsumptionTax

( Application.Procure.EnableJapanConsumptionTax ), the following fields are displayed:

• Seller Tax Registration Number - Displays the Tax Registration Number of the supplier on the Requisition
creation page.

• Supplier GST ID - Displays the Tax Registration Number of the supplier on the Invoice creation page under the
Header Information GST Details section.

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26 PUBLIC Invoicing Process for Japan
Contact your Designated Support Contacts (DSCs) to submit a ticket/case in SAP Ariba Connect or SAP for me
to Ariba Product Support to make the Seller Tax Registration Number field visible on the line-item level of PR, PO,
Invoice, and Invoice reconciliation documents. This field displays the Tax Registration Number copied from the
supplier Tax Registration master data in SAP Ariba Buying and Invoicing system for ERS and on the invoice creation
page. The Seller Tax Registration Number field will be overwritten by the Supplier GST ID value for Invoices created
in SAP Business Network.

Related Links

• Tax Invoicing in Japan in SAP Business Network.

Sample Currency Information File

The following table lists the fields in the CurrencyInfo.csv file:

AmountPrecision PricePrecision Rounding TaxRounding Currency Precision

0 0 ROUNDFLOOR ROUNDFLOOR JPY 0

Sample Tax Type File

The table below describes the fields in the TaxType.csv file required to create tax components or to add taxes to
invoices. This file can be used for all variants.

Invoicing and Payment Process Guide

Invoicing Process for Japan PUBLIC 27
UniqueName Name Category

SalesTax_8 SalesTax 8 percent 2

SalesTax_10 SalesTax 10 percent 2

Sample Tax Type Map File

The table below describes the fields in the TaxTypeMap.csv file required to successfully exchange purchase orders
and invoices between SAP Ariba Buying and Invoicing and SAP Business Network. This file can be used for all
variants.

Name TaxLineType

SalesTax_8 SalesTax_8

SalesTax_10 SalesTax_10

Sample Tax Code LookUps

The table below describes the fields in the TaxCodeLookup.csv file required to import tax code lookups for Japan.
Additional customizable fields can be added to this file.

Commodity- ShipFrom- ShipToCoun- TaxCode- cus_Quali-

Code Country try Country TaxCode IsAccrual Rank fiedSupplier

007 JP JP JP V6 No 1 No

007 JP JP JP J2 No 2 Yes

017 JP JP JP V6 No 1 No

017 JP JP JP J2 No 2 Yes

R1133 JP JP JP V6 No 1 No

R1133 JP JP JP J2 No 2 Yes

004 JP JP JP V2 No 1 No

004 JP JP JP J1 No 2 Yes

Invoicing and Payment Process Guide

28 PUBLIC Invoicing Process for Japan
 Commodity- ShipFrom- ShipToCoun- TaxCode- cus_Quali-
Code Country try Country TaxCode IsAccrual Rank fiedSupplier

00105 JP JP JP V2 No 1 No

00105 JP JP JP J1 No 2 Yes

00305 JP JP JP V2 No 1 No

00305 JP JP JP J1 No 2 Yes

00707 JP JP JP V2 No 1 No

00707 JP JP JP J1 No 2 Yes

Sample Tax Code Lookup Field Map

The table below describes the fields in the TaxCodeLookupFieldMapping.csv file required to import tax code lookup
field maps. This file can be used for all ERP systems.

FieldName DottedFieldPath LineItemType

cus_QualifiedSupplier cus_QualifiedSupplier ariba.purchasing.core.ReqLi

neItem

cus_QualifiedSupplier cus_QualifiedSupplier ariba.invoicing.core.Invoic

eLineItem

cus_QualifiedSupplier cus_QualifiedSupplier ariba.invoicing.core.Invoic

eReconciliationLineItem

Sample Supplier Tax Registration Number File

The following table lists the fields in the SupplierTaxRegistration.csv file.

Country Supplier TaxRegistrationNumber

JP SU_INTERNAL6932 JPJWOODMAN926

JP 0000000101 JPJCN9260R001

Invoicing and Payment Process Guide

Invoicing Process for Japan PUBLIC 29
Italy SDI Invoices

SAP Ariba Buying and Invoicing and SAP Ariba Invoice Management can be configured to allow Accounts Payable
(AP) to edit Italy SDI invoices before the invoice reconciliation document is created. Authorized users can edit
invoice header details and can add items, allowances, charges, taxes and tax amounts, and withholding tax. In
addition, to facilitate accounting, administrators can assign a default requester for SDI invoices that don't have one
already.

Members of the following groups can edit submitted SDI invoices: Invoice Administrator, Invoice Agent, Invoice
Editor, Invoice Manager, Invoice Specialist.

Workflow for SDI Invoices [page 30]

Adding an Approval Rule for SDI Invoices [page 31]

Workflow for SDI Invoices

This high-level workflow for Italy SDI invoices starts with the supplier submitting the invoice and ends with the
creation of the invoice reconciliation (IR) document.

The workflow assumes the following:

• The administrator has configured a default requester for SDI invoices that don't have a requester specified.
• The invoice approval process routes invoices from Italy to approvers who can edit SDI invoices as needed.

1. The supplier from Italy submits an invoice to SDI.

2. SDI sends the FatturaPA XML document to TrustWeaver, which converts it to cXML format.
3. cXML document is sent to SAP Business Network.
4. SAP Business Network sends the following:
• cXML invoice that SAP Business Network received from Trust Weaver
• The FatturaPA XML invoice that SDI sent to TrustWeaver and TrustWeaver sent toSAP Business Network
• The SDI delivery receipt
• A PDF file of the invoice, generated in one of the following ways:
• By TrustWeaver, based on the FatturaPA XML that TrustWeaver received from SDI
• By SAP Business Network, based on the cXML that SAP Business Network received from TrustWeaver
5. If no requester is specified, the invoicing solution adds a default requester, and adds the purchasing unit or
business unit based on the default requester.
6. The invoicing solution routes the invoice to an approver who can edit invoices.
7. The approver opens the invoice, views the attachment, edits the invoice as needed, and submits the invoice.
8. When the invoice is fully approved, an IR document is created.
9. From this point onward, the invoicing process continues as usual.

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Related Information

Adding an Approval Rule for SDI Invoices [page 31]

Adding an Approval Rule for SDI Invoices

You can configure your invoice approval process to route SDI invoices to users who can edit them.

Prerequisites

Members of the Customer Administrator or Invoice Administrator group can perform this task.

Context

You add an approval rule with a Field Match condition based on the TaxInvoiceFormat field of the invoice.

Procedure

1. From the dashboard, choose Manage Approval Processes .

2. Find the approval process for invoices, open it, and click Edit.
3. Add an approval rule.
4. In the Condition section, create a Field Match condition.
5. Select the field to use.

For SDI invoices, use the Invoice.TaxInvoiceFormat field.

6. Select the value to match.

For SDI invoices, enter FPR as the value to match.

7. In the Action section of the approval process editor, define the approvers to add for SDI invoices.
8. Save, check in, and activate the approval process.

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Evaluated Receipt Settlement and Automatic
Invoicing

The evaluated receipt settlement (ERS) feature enables buyers to settle goods receipts without receiving invoices
from suppliers. This helps to reduce invoice variances and close purchasing transactions more quickly.

This feature is supported in SAP Ariba Buying and Invoicing.

The ERS feature enables automatic creation of invoices after goods receipt transactions are fully approved. SAP
Ariba Buying and Invoicing creates invoices using the information on purchase orders, no-release order contracts,
and goods receipts. This reduces invoice variances and makes the invoicing process more efficient by ensuring that
invoices are based on goods received.

SAP Ariba Buying and Invoicing also creates partial invoices if goods are received in batches. For example, if a
buyer ordered 15 items and received 10 items, SAP Ariba Buying and Invoicing creates an invoice for 10 items. SAP
Ariba Buying and Invoicing creates another invoice after the remaining five items are received at a later date. For
transactions pertaining to returned goods and receipt adjustments using negative quantities, SAP Ariba Buying
and Invoicing creates credit memos.

When ERS is enabled for no-release order contracts, SAP Ariba Buying and Invoicing creates invoices for recurring
and fixed fee payments for items, such as rents and advances on specific dates, based on the payment frequency
and billing dates configured on the contracts. For details about ERS for no-release contracts, look for the topic
about automatic creation of contract-based invoices for evaluated receipt settlement, in the guide Managing
Contract Compliance.

ERS is controlled by the site configuration parameter Generate invoices for evaluated receipt
settlement(Application.Procure.EnableERS) (enabled for self-service).

Contracts That Consist a Mix of ERS and Non-ERS Items

Your site might allow users to create manual invoices for non-ERS items and automatic invoices for ERS items for
contracts that consist a mix of ERS and non-ERS items. This capability is controlled by a feature toggle that SAP
Ariba sets.

Source of Data for Automatically-Generated Invoices

The SAP Ariba Buying and Invoicing generates invoices using the information in the following documents:

• Purchase orders: The SAP Ariba Buying and Invoicing inherits information, such as price, tax codes, charges,
and payment terms, that are specified for line items on purchase orders. All taxes for invoices are generated
automatically from receipts that are based on taxes specified on the associated purchase orders. Allowances
for invoices that are generated automatically from receipts are also associated with the information on the
purchase orders.

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32 PUBLIC Evaluated Receipt Settlement and Automatic Invoicing
• No-release order contracts: Similar to purchase orders, the SAP Ariba Buying and Invoicing inherits
information such as price, tax codes, and payment terms that are specified for each line item on the contract.
In addition, invoices for recurring and fixed fee payments are automatically created based on the pricing terms
and dates that you schedule on the contracts.
• Goods receipts: The quantity value on the receipt is copied automatically to the invoice.

Evaluated Receipt Settlement Workflow

The following is a high-level workflow for automatic creation of invoices when line items on purchase orders and
no-release order contracts are marked for ERS transactions:

1. A preparer creates a requisition or a contract request for items that need to be procured from ERS-approved
suppliers.
(For contract requests) The preparer configures the Fixed and Recurring Fees details to specify the date at
which items are delivered and the frequency at which services are rendered.
2. SAP Ariba Buying and Invoicing includes a member of the Purchasing Manager or the Contract Manager
group as an approver in the approval flow.
3. The Purchasing Manager or Contract Manager group approver performs the following actions:
1. (For contract requests) Edits the details for fixed and recurring fee items to ensure that the Auto Invoice
field is set to Yes.
2. Edits the details for each line item on the requisition or the contract request to ensure that the ERS
Allowed field is set to Yes, and then approves the requisition or contract request.
4. Other approvers identified in the approval flow approve the requisition or contract request.
5. SAP Ariba Buying and Invoicing creates a purchase order or a no-release order contract.
6. The supplier receives the order and ships the items to the buyer.
7. The buyer receives the items and approves the receipt transactions.
8. (For material items) Depending on the quantity of items received, SAP Ariba Buying and Invoicing generates
invoices and credit memos with reference to the receipt:
• If items are fully received, SAP Ariba Buying and Invoicing automatically creates an invoice and the
transaction is passed for payment.
• For items received in batches, SAP Ariba Buying and Invoicing automatically creates separate invoices for
each batch based on the accepted quantity of items, and the invoices are passed for payment.
• For line items on a receipt with negative values for the amount accepted, SAP Ariba Buying and Invoicing
automatically creates a line-item credit memo.
9. (For fixed and recurring fee items on no-release order contracts) Depending on the frequency and billing
date specified on the contract, SAP Ariba Buying and Invoicing automatically creates an invoice for fixed and
recurring fee items on the scheduled date.

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Non-PO Invoicing

Non-PO invoices are invoices that are not based on a purchase order. If suppliers send paper invoices, invoice entry
users create electronic non-PO invoices in the SAP Ariba invoicing solution. If your business rules allow, suppliers
can also create non-PO invoices in SAP Business Network.

Users in your site create non-PO invoices by clicking Create Non-PO Invoice on the dashboard. SAP Ariba
invoicing solutions always treat these invoices as non-PO invoices.

Suppliers create non-PO invoices using the Create Non-PO Invoice task in their SAP Business Network accounts
to submit an invoice through SAP Business Network. However, your SAP Ariba invoicing solution treats these
invoices as non-PO invoices or PO-based invoices depending on the values the supplier enters in the following
fields:

• Sales Order # only: treated as a non-PO invoice

• Customer Order #:
• Treated as a non-PO invoice if the value in the Customer Order # field does not match an existing
purchase order on SAP Business Network.
• Treated as a PO-based invoice if the value in the Customer Order # field matches an existing purchase
order on SAP Business Network.
• Contract # (valid or invalid): treated as a contract-based invoice. If the contract ID is invalid, the invoice
triggers an Invoice Unmatched exception.

 Note

SAP Business Network requires suppliers to enter an email address (Sold To) only if they enter a value in the
Sales Order # field. If suppliers submit an invoice with an invalid Customer Order # value and without a valid
email address, your SAP Ariba invoicing solution auto-rejects the invoice by default.

In analytical reports on invoices, when suppliers submit an invoice throughSAP Business Network with no specific
order information (the Sales Order #, Customer Order #, and Contract # fields are all blank), that invoice has the
Invoice Type of Non-PO. If the supplier submits an invoice with a Customer Order # value that does not match an
existing purchase order on SAP Business Network, that invoice has the Invoice Type of Customer Order.

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34 PUBLIC Non-PO Invoicing
ERP Invoice Copies

ERP invoice copies are information-only copies of invoices that are processed and reconciled in an external ERP
system, sent to SAP Business Network, and copied to SAP Ariba Invoice Management so that you can see all of
your company's invoicing activity in it.

ERP invoice copies are always information-only. The ERP system is always the source of truth for ERP invoice
copies, including status updates. They do not have any approval flows or reconciliation activities in SAP Ariba
Invoice Management. However, by providing information about invoice activity in integrated ERP systems, they
allow you to see and run reports on invoices across all of your company's invoicing activity in SAP Ariba Invoice
Management. ERP invoice copies are matched to related contracts, purchase orders, and payments, which are
linked from the ERP invoice copy's Invoice page.

ERP invoice copies are automatically approved when they are received and are not editable. You can print and
add attachments and comments to ERP invoice copies and their corresponding invoice reconciliations. You cannot
perform any other actions on them.

You can search for ERP invoice copies by choosing ERP Invoice Copy on the Invoice Origin Type search filter.

 Note

Invoices from SAP Fieldglass are considered ERP invoice copies, but their origin type is Fieldglass Invoice
Copy.

You can't copy ERP invoice copies (including SAP Fieldglass invoices) from search results. In addition, the invoice
page for ERP invoice copies doesn't include the Copy button.

In analytical reports, the Invoice Origin Type field shows ERP Invoice Copy for ERP invoice copies and
Unclassified for all other invoices.

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Invoice Cancellation by Suppliers

Suppliers can request to cancel invoices that are sent through SAP Business Network.

A cancel invoice request is an approvable document that changes the status of the corresponding invoice
reconciliation document, the original invoice, and the payment request. Suppliers can submit cancel invoice
requests if the invoice is still in the process of being reconciled (the status of the corresponding invoice
reconciliation is Reconciling). They cannot cancel invoices that have already been reconciled (the status of the
corresponding invoice reconciliation is Reconciled).

The cancel invoice request, as an approvable document, must also go through an approval process; the invoice is
not canceled until approval of the request is final. During the approval process, the status of the original invoice
document and the corresponding invoice reconciliation are both Canceling. If the cancel invoice request is finally
approved, the invoice is successfully canceled, the associated invoice, IR, and payment request all change status to
Canceled and all purchase order and contract accumulators associated with the original invoice are reversed. If the
cancel invoice request is rejected, there is no change to invoice, invoice reconciliation, or payment request status
or to accumulators, and the SAP Ariba invoicing solution sends an update to SAP Business Network so that the
invoice status there is no longer Canceled.

Related Information

Invoice and Invoice Reconciliation Status Flow [page 95]

Cancellation of Approved Invoices in the ERP System

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36 PUBLIC Invoice Cancellation by Suppliers
Taxes on Invoices

SAP Ariba invoicing solutions support indirect taxes and withholding taxes on invoices.

Indirect and Withholding Taxes

Indirect Taxes: Indirect taxes are taxes levied on goods or services, paid by the buyer to the supplier who in turn
pays them to the tax authorities. Examples of indirect taxes are Value Added Tax (VAT), sales tax, and excise duty.
Indirect taxes are added to the invoice amount.

Withholding Taxes: In certain countries/regions, withholding tax is required for self-employed suppliers and is
generally paid by the buying organization to the state or federal government tax authorities on behalf of the
supplier. The tax percentage rate or tax amount must be entered as a negative number on invoices and a positive
number on credit memos.

If an invoice contains indirect taxes and withholding taxes, the invoice summary displays the indirect tax amount
and withholding tax amount separately; however, the total tax amount excludes withholding tax. The Payable to
Supplier value is calculated by deducting the withholding tax amount from the gross amount of the invoice.

Taxes on Invoices Received from SAP Business Network

When SAP Business Network sends an invoice containing taxes to the SAP Ariba invoicing solution, the tax types
applied on the invoice in SAP Business Network are replaced by the tax types defined in the SAP Ariba invoicing
solution based on the tax type mappings defined. If a tax type on the invoice cannot be mapped to a tax type
defined in the SAP Ariba invoicing solution, the tax type is set to a default tax type defined for the site.

Taxes on Invoices Created in SAP Ariba Invoicing Solutions

By default, when you create a PO-based invoice in your SAP Ariba invoicing solution, the taxes on the purchase
order are not copied to the invoice. You need to apply taxes on the invoice manually based on the paper invoice
received from the supplier. SAP Ariba can configure your site to copy tax, charge, and discount information
from the purchase order by enabling feature SINV-6818: PO-based defaulting of taxes, charges, and discounts on
manual invoices.

You can apply indirect and withholding taxes on invoices either at the header level or at the line-item level, but
not at both. For example, if you apply a withholding tax on the invoice at the header level, you cannot apply any
withholding taxes at the line-item level, but you can still apply indirect taxes at the line-item level.

At the header-level, you can apply taxes using only tax types. At the line-item level, you can apply taxes using both
tax types and tax codes, provided you use the same way of applying taxes for all line items; that is, you cannot apply
tax types on some line items and tax codes on others. If you use tax codes, you can apply up to one indirect tax

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Taxes on Invoices PUBLIC 37
code and one withholding tax code on a line item. If you use tax types, though you can apply multiple tax types at
the header level or on a line item, you cannot apply the same tax type more than once. For withholding tax types,
you must specify a negative tax amount. This withholding tax amount is deducted from the invoice amount and
tracked separately in the payment request generated for the invoice.

When invoices are sent to SAP Business Network, the tax types on the invoices are replaced by the tax types used
in SAP Business Network based on the tax type mappings defined.

VAT Compliance and Support for 0% VAT Rate

Invoices sent through SAP Business Network can contain VAT details at the header and line-item level. VAT
information is displayed in the VAT Details area of invoice headers and in line item details. Invoices that contain
VAT taxes might be also be digitally signed. You can view digital signatures by clicking View Certificate in the
header.

Suppliers who submit invoices on SAP Business Network can indicate that a VAT rate is zero rated or exempt
using the Exempt Detail field. Zero rated goods or services are taxable, but the tax rate is 0%. Exempt goods and
services are exempt from taxation.

Your SAP Business Network buyer account administrator can make the Exempt Detail field mandatory or optional
for suppliers using the Require explanation for zero-rate VAT invoice rule in your SAP Business Network buyer
account. When this rule is enabled, suppliers are forced to provide a reason for a 0% VAT rate. The Exempt Detail
field is not available for reporting.

Buyer-Payable Taxes

SAP Ariba uses the term buyer-payable tax for item taxes that the buyer pays directly to tax authorities. Depending
on the situation, buyer-payable taxes can also be referred to as direct-pay taxes, self-assessed taxes, or use taxes.

Buyers and suppliers typically have an understanding of the situations in which an item tax is a buyer-payable tax.
Often, the buyer's ship-to location determines this. Suppliers don't usually invoice for taxes the buyer pays directly
because buyers don't owe suppliers for them.

On sites using Enhanced third-party tax calculation for invoicing

(Application.Procure.EnhancedTaxCalculationInExternalSystems), the tax calculation engine
determines whether a tax is a buyer-payable tax during invoice reconciliation. Buyers accrue buyer-payable taxes.

For details about buyer-payable taxes, see the Tax and Charge Configuration guide.

Related Information

Tax and Charge Exception Calculations [page 70]

PO-Based Defaulting of Taxes, Charges, and Discounts on Manual Invoices [page 41]
Invoices from SAP Central Invoice Management [page 61]

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38 PUBLIC Taxes on Invoices
Charges and Discounts on Invoices

SAP Ariba invoicing solutions support charges and discounts on invoices at the header level as well as at the
line-item level.

Charges and Discounts on Invoices Received from SAP Business Network

When an invoice containing charges is received from SAP Business Network, the charge types applied on the
invoice are replaced by the charge types defined in the SAP Ariba invoicing solution based on the charge type
mappings defined. If a charge type applied on the invoice is not mapped to any charge type in the SAP Ariba
invoicing solution, the default charge type Other Charges is used with the SAP Business Network charge type
appended to it. For example, if a charge of type Priority Delivery is applied on the invoice in SAP Business Network
and this charge type is not mapped to any charge type in the SAP Ariba invoicing solution, then the charge type for
the charge is displayed as Other Charges - Priority Delivery.

Discounts are applied to invoices in SAP Business Network either as discounts or as allowances with type as
discount. In both cases, the SAP Ariba invoicing solution consumes the applied discount as a discount. The SAP
Ariba invoicing solution rejects an invoice if multiple discounts or allowances are applied on a line item or at the
header level in an invoice.

Charges and Discounts on Invoices Created in SAP Ariba Invoicing Solutions

By default, when you create a PO-based invoice in your SAP Ariba invoicing solution, the charges and discounts
on the purchase order are not copied to the invoice and you need to apply them manually based on the paper
invoice received from the supplier. SAP Ariba can configure your site to copy tax, charge, and discount information
from the purchase order by enabling feature SINV-6818: PO-based defaulting of taxes, charges, and discounts on
manual invoices.

You can apply charges on invoices using the standard shipping and handling charge types as well as the charge
types defined by the customer administrator. You cannot apply the same charge type on the invoice at both the
header and line-item level. When invoices are sent to SAP Business Network, the charge types applied on the
invoices are replaced by the charge types used in SAP Business Network based on the charge type mappings
defined.

You can apply only one discount on an invoice at the header or on a line item. You must specify the discount as a
negative amount to deduct it from the invoice amount.

Related Information

PO-Based Defaulting of Taxes, Charges, and Discounts on Manual Invoices [page 41]

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Charges and Discounts on Invoices PUBLIC 39
Allowances in Invoice Reconciliation Documents from Merged Sites

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40 PUBLIC Charges and Discounts on Invoices
PO-Based Defaulting of Taxes, Charges, and
Discounts on Manual Invoices

SAP Ariba Buying and Invoicing sites can include PO-based defaulting of tax, charge, and discount information.
Users entering invoices don't have to enter all tax, charge, and discount information manually.

With this feature, the tax, charge, and discount information for the line items is copied from the purchase order.
To enable this feature, have your Designated Support Contact (DSC) submit a Service Request (SR). An SAP Ariba
Support representative will follow up to complete the request by turning on feature SINV-6818.

 Note

This feature pertains to invoices the buyer enters on behalf of a supplier. For PO-based invoices submitted by
suppliers, the behavior depends on how your SAP Business Network account is configured. A business rule you
set in your SAP Business Network buyer account controls if tax information is copied from the order to the
invoice, or if suppliers must manually add taxes to the invoice. The name of that rule is Copy tax from purchase
order to standard invoice.

Prerequisites

Is for sites that support adding taxes, charges, and discounting to requisitions and purchase orders. This capability
is controlled by the site parameter Application.Procure.EnableTaxesChargesAndDiscount, which SAP
Ariba sets for you.

Restrictions

• This feature doesn't apply to invoices for POs that include service lines.
• The charge type is copied from the PO to the invoice, but the default charge amount on the invoice is always 0.
Users fill it in manually.

Basic Workflow

1. A buyer user creates a requisition with tax, charge, and discount lines.
2. After the requisition is approved, the SAP Ariba solution creates the PO and sends it to the supplier.
3. The supplier sends the goods and sends a paper invoice to the buyer.
4. A buyer user creates a PO-based invoice on behalf of the supplier and selects the appropriate PO or POs.
5. The SAP Ariba solution copies the tax, charge, and discount information for each PO line onto the invoice:
• Tax lines, with tax code, tax component, and tax amount

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 • Charge lines, with charge type (for example, shipping) and an amount of 0 (zero)

 Note

The buyer user fills in the charge amount on the invoice. It's not copied from the order.

• Discount lines, with the discount amount

6. The buyer user edits the invoice as needed and submits the invoice.

How Defaulting Works When There Are Multiple Invoices (Partial Invoicing)

• Taxes: The default amount is based on the quantity remaining for the line item and the tax rate associated with
the tax code. "Quantity remaining" is the quantity that isn't already invoiced and reconciled.
• Discounts: The default amount is based on the discount amount remaining. "Amount remaining" is the amount
that isn't already invoiced and reconciled.
• Charges: The default amount is always 0 on the invoice.

For example, a PO line item has the following quantity and tax, charge, and discount lines:

1. A buyer user creates an invoice on behalf of the supplier and selects the PO.
2. The tax and discount amounts are copied from the PO. The default charge amount on the invoice is $0 USD.

3. The buyer user edits the tax, charge, and discount lines on the invoice as follows:

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42 PUBLIC PO-Based Defaulting of Taxes, Charges, and Discounts on Manual Invoices
4. The buyer user fills in the rest of the invoice and submits it.
5. The invoice lines are reconciled.
6. A buyer user creates another invoice and adds the same PO.
7. On the new invoice, the default quantity and the default amounts for the tax, charge, and discount lines are as
follows:

8. The buyer user fills in the rest of the invoice and submits it.

What if POs Change Before the Invoice Is Submitted?

When a manual invoice is still in Composing state, and an associated PO changes, the taxes, charges, and
discounts on the invoice are not updated automatically. Any manual edits made on the invoice are preserved.

If a user creates an invoice but doesn't submit it right away, they can choose the PO again on the Invoice Entry
page. The latest values are copied from the PO to the invoice, replacing existing values. This ensures that the tax,
charge, and discount information is in sync with the latest PO.

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Price-Adjustment Debits and Credits

Buyers can reconcile line-item price adjustments from suppliers. Buyers can also enter price-adjustment debit and
credit memos on behalf of suppliers.

A price adjustment results in a line-level debit memo or line-item credit memo against the original invoice. The
line-item quantity on a price adjustment is the same as the line-item quantity on the original invoice.

In SAP ERP, price adjustments are represented as subsequent debits and subsequent credits.

Type of price adjustment Invoice Type

Price reduction Line-Item Credit Memo

Price increase Line-Item Debit Memo

Once the price adjustment from the supplier is reconciled and approved in the SAP Ariba solution (often with no
intervention from the buyer), it's sent to the external ERP system.

Figure 1: Example: Price-Adjustment Credit Memo

SAP Ariba Buying and Invoicing and SAP Ariba Invoice Management support matching and exception handling for
price-adjustment debit and credit memos.

The workflow supports all types of invoice lines on PO-based invoices, non-PO invoices, and contract-based
invoices.

 Note

SAP ERP doesn't support price adjustments for non-PO or contract-based invoices. Price-adjustment
documents in SAP ERP (referred to as subsequent debits and credits) are always against purchase orders.

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44 PUBLIC Price-Adjustment Debits and Credits
In reporting:

• Reports for invoices and invoice reconciliation documents include a Price Adjustment field for line-item debit
memos and line-item credit memos to indicate whether they're price adjustments.
• Reports for invoices and invoice reconciliation documents include an Invoice Purpose field, which shows the
invoice document type (standard, credit memo, line-item credit memo, or line-item debit memo).

Prerequisites

To allow suppliers to submit price-adjustment credit memos and debit memos through SAP Business Network, in
your SAP Business Network account, check the following General Invoice Rules on the Default Transaction Rules
page:

• Allow suppliers to send line-item credit memo

• Price Adjustment
• Allow suppliers to send line-item debit memo
• Price Adjustment

Buyers and suppliers that use their own cXML-enabled applications must upgrade to cXML 1.2.034 or later to
support attributes added to the cXML standard.

Integration with External ERP Systems

In order for the ERP system to process the documents as price adjustments, it must be configured to process the
price adjustment indicator and invoice type information included in the document.

Integration with external ERPs other than SAP ERP requires custom work.

Buyers integrated with SAP ERP using SAP Business Suite Add-On for SAP Business Network integration must
have release SP15 or later.

Buyers integrated with SAP ERP using SAP Ariba Cloud Integration Gateway must have SAP Ariba Cloud
Integration Gateway release 2018.09 or later for support of price-adjustment debits and credits.

If your external ERP system is SAP ERP:

• This feature works with existing adapters without additional mapping.

• Price-adjustment debit memos become subsequent debits in the ERP system, and price-adjustment credit
memos become subsequent credits.
• Price adjustments are supported for PO-based invoices only.

Invoicing Workflow for Price-Adjustment Debits and Credits [page 46]

Enablement of Price Adjustment Debits and Credits [page 48]

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Price-Adjustment Debits and Credits PUBLIC 45
Invoicing Workflow for Price-Adjustment Debits and
Credits
This diagram shows a high-level workflow for price-adjustment debit and credit memos. More detailed steps follow.

Figure 2: High-Level Workflow for Price-Adjustment Debit Memos and Price-Adjustment Credit Memos

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46 PUBLIC Price-Adjustment Debits and Credits
1. After sending an invoice, the supplier realizes the price of one of the items needs to be adjusted.
2. The supplier creates one of the following against a line in the original invoice:
• For a reduction in the price of an item, a line-item credit memo marked as a price adjustment
• For an increase in the price of an item, a line-item debit memo marked as a price adjustment
The supplier specifies the change in price, not the new price.
• For price-adjustment credit memos, the change in price is a negative number because the price is reduced.
• For price-adjustment debit memos, the change in price is a positive number.
The quantity for the item is the same as the invoiced quantity. The SAP Ariba solution applies the price
adjustment to the full quantity of the invoiced item.

 Note

Buyers can enter price-adjustment debit and credit memos in cases where the supplier sends a paper-
based price adjustment.

3. Upon receiving the price-adjustment debit or credit memo, the SAP Ariba solution creates an invoice
reconciliation document for the price adjustment.
4. The SAP Ariba solution checks the status of the original invoice.
• If the IR for the original invoice has a status of Paying, Paid, or Paying Failed, the price-adjustment debit
or credit memo is reconciled. Amount accumulators are updated on the order and contract (and on the
goods receipt in sites that use goods receipt-based invoice verification).
Price-adjustment credit memos are automatically approved. Exceptions might be raised on a price-
adjustment debit memo. Price-adjustment debit memos are automatically approved as long as the change
in price doesn't raise a price exception.
• If the IR for the original invoice does not have a status of Paying, Paid, or Paying Failed, an exception
is raised on the price-adjustment debit or credit memo to prevent it from being sent to the ERP system
before the ERP system receives the invoice. This exception can be cleared in two ways: by approving the
original invoice or by rejecting the price-adjustment debit or credit memo.
If the original invoice is in Reconciling status, it’s re-reconciled based on the change in price. Previously
existing price exceptions might be cleared as a result of a price-adjustment credit memo.

 Note

For line-item credit memos, individual lines are accumulated even if the Credit Memo References
Unapproved Invoice Reconciliation exception is raised, because the exception occurs at the header
level, not the line level. This makes it possible for lines on the credit memo to clear exceptions on the
original IR. For example, suppose an IR has a price variance exception, and a line-item credit memo
brings the price down within the tolerance. In this case, the exception on the original invoice is cleared
even though the credit memo won't be fully processed until the ERP system receives the invoice.

5. Ariba sends the price-adjustment debit or credit memo to the external ERP system.

 Note

If your external ERP system is SAP ERP, this feature works with existing adapters without additional
mapping. Price-adjustment debit memos become subsequent debits. Price-adjustment credit memos
become subsequent credits. Subsequent debits and credits in SAP are always against purchase orders.
Therefore, you can't use price adjustments for non-PO invoices and contract invoices if your external ERP
system is SAP ERP.

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Prices Used in Reconciling Invoice Documents

The following table describes the prices used in reconciling the invoice documents involved with price adjustments.

Invoice document type Price used for reconciliation

Original invoice Price of line item on original invoice + price-adjustment credit

This facilitates clearning of price exceptions on the original

invoice. For example:

Price on the order = $10

Tolerance = 10%
Price on the invoice = $12, more than tolerance allows, excep-
tion raised on invoice
Price-adjustment credit = -$1, exception is cleared because $11
is within tolerance

Price-adjustment credit The value in the Price Change field

Price-adjustment debit Price of line item on original invoice + line-item debit

For example:

Price on the order = $10

Price on the invoice = $10
Price tolerance = 10%
Price-adjustment debit = $2
Price adjustment price = $12, more than tolerance allows
Price exception is raised on price-adjustment debit memo

Disputing Price Variance Exceptions

Disputing price variance exceptions doesn't consider price adjustments. The flow works differently from how some
users expect it to. For example, suppose:

• The price on the PO is 10 USD.

• The price on the invoice is 13 USD.
• A line-item credit memo has a price adjustment of -2 USD.

In this scenario, the original IR had a PO price variance (with the setting Field Path To Validate set to
PriceIncludingReferencedInvoiceAdjustments) because the expected price = 10 USD and the invoice
price = 11 USD (13 USD minus 2 USD). If a user disputes the exception and chooses Accept Expected Price, the
price is set to 10 USD. The price-adjustment credit memo isn't considered.

Enablement of Price Adjustment Debits and Credits

Some of the functionality for this feature is controlled by site configuration parameters.

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48 PUBLIC Price-Adjustment Debits and Credits
• Self-service parameters can be changed by your administrator in Ariba Administrator under Intelligent
Configuration Manager Manage Configurations .
• Parameters and other options that are not self-service are set by SAP Ariba and require a case to be submitted.

To enable price adjustment debits and credits, set the following parameter to Yes:
Application.Invoicing.EnableLineItemPriceAdjustmentInvoices (enabled for self-service)
Specifies whether the invoicing solution accepts and reconciles price-adjustment line-
item credit memos and line-item debit memos from SAP Business Network. In addition,
specifies whether buyers can manually enter line-item price-adjustment invoices. When this
parameter is enabled, users entering line-item credit memos can choose between a price
adjustment and a quantity adjustment.

To support reconciliation of price-adjustment credit memos, the following parameter must be set to No:
Application.Invoicing.SkipLineCreditMemoExceptions (set by SAP Ariba Support)
This legacy parameter specifies whether line-level credit memos raise exceptions during
invoice reconciliation. Administrators can now configure this functionality themselves in the
Invoice Exception Types UI. To fully enable customer configuration:

• Set Application.Invoicing.LineCreditMemoExceptions to No.

• Add all categories to
Application.Invoicing.LineCreditMemoExceptionLineCategories.
• Configure the desired behavior in the Invoice Exception Types UI in Ariba
Administrator.

 Note

When Application.Invoicing.SkipLineCreditMemoExceptions is set to No, customer administrators

can still prevent specific exceptions on line-item credit memos by using the Apply to Specific Invoice Types
field of the exception type.

To prevent people from accepting a price-adjustment debit or credit when the original invoice
has not been approved, add the exception types CreditMemoReferencesUnapprovedInvoice and
DebitMemoReferencesUnapprovedInvoice to the following parameter:
Application.Invoicing.DisallowAcceptOnExceptionTypes (enabled for self-service)

This parameter removes the Accept Invoice option from the Action menu in the invoice
reconciliation user interface for the invoice exception types you specify in a comma-
separated list. Enter the exact unique name of the invoice exception types for which to
remove the Accept Invoice option on the Action menu. Example: POPriceVariance.

By removing the option to accept the information provided by suppliers on their invoices
for certain invoice exception, you can enforce that you only pay for what was ordered. Note
that certain geographies require that invoices are paid in full or rejected if there are possible
invoice errors.

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Non-PO Invoices for One-Time Vendors

SAP Ariba Buying and Invoicing sites integrated with SAP ERP support one-time vendor invoices.

Buyers sometimes make one-time purchases from suppliers that aren't in their established list of suppliers. For
example:

• A department manager might purchase a cake from a local baker or rent bicycles for a team outing.
• A buyer might use a temporary supplier if the usual supplier can't provide the required goods.

With one-time vendor support, when a supplier sends the invoice for such a one-time purchase, Accounts Payable
(AP) can enter and process the non-PO invoice without adding a new supplier record to their master data. All the
payment information is stored directly on the invoice.

This feature is for non-PO invoices entered by the buyer's AP department and for paper invoices converted via
the buyer's invoice conversion service (also known as SAP Ariba Open ICS). The feature is supported on sites
integrated with SAP ERP.

For information about configuring your site to support one-time vendor invoices, see Non-PO Invoices for One-
Time Vendors in Invoicing Data Import and Administration Guide.

Workflows for One-Time Vendor Non-PO Invoices [page 51]

One-Time Vendors in SAP Ariba Solutions [page 57]

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Workflows for One-Time Vendor Non-PO Invoices
The following diagrams and steps explain the process for one-time vendor, non-PO invoices either entered by the
buyer or sent from a buyer's invoice conversion service (SAP Ariba Open ICS).

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 Figure 3: Typical One-Time Vendor Invoice Flow

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52 PUBLIC Non-PO Invoices for One-Time Vendors
Workflow for Invoices Entered by the Buyer

1. A member of the Customer Administrator group works with SAP Ariba to configure the site to support
one-time vendor, non-PO invoices.
This includes configuring the one-time vendor, adding users to a group that allows editing of payment
information on an invoice, modifying the invoice approval process, and working with SAP Ariba to determine
which fields are used for supplier validation and which fields are mandatory for each payment method.
2. A user creates a non-PO invoice and selects the one-time vendor option, which allows the user to fill in the
supplier information.
The user can enter payment information if authorized to do so.
3. The user submits the invoice for approval.
4. The SAP Ariba solution validates the invoice, checking the following:
• Whether the maximum number of invoices allowed has already been reached for the specified supplier
• Whether supplier information or payment information on the invoice has been used for previous one-time
vendor invoices, and if so, whether the specified supplier name is consistent with the name on previous
invoices
• Whether the supplier invoice number has already been used for the specified supplier
5. When invoice submission is complete, the approval flow is generated.
6. If the user who created the invoice didn't enter payment information, an approver in the appropriate group
does so and resubmits the invoice. Then, the SAP Ariba solution validates whether supplier or payment
information on the invoice has been used for previous one-time vendor invoices, and if so, whether the
specified supplier name is consistent with the name on previous invoices.
7. The invoice is approved.
8. The invoice reconciliation (IR) document is created.
9. The IR document is reconciled and approved.
10. In SAP Ariba Buying and Invoicing, a payment request is created and exported to the ERP system for payment.
Exported payment requests include the supplier and payment information.
11. The ERP system receives the payment information and pays the supplier.
12. The ERP system sends remittance information to SAP Ariba.

Workflow for ICS Invoices

1. A member of the Customer Administrator group configures the site to support one-time vendor, non-PO
invoices. This includes configuring the one-time vendor, adding users to a group that allows editing of payment
information on an invoice, and modifying the invoice approval process.
2. The buyer informs the ICS provider about the one-time vendor invoice process and gives the ICS provider the
necessary information (one-time vendor IDs, cXML information).
3. ICS provider receives paper invoice from supplier, creates cXML invoice, and sends it to SAP Business Network.
4. SAP Business Network matches the invoice to the correct one-time vendor and sends the invoice to the SAP
Ariba solution.
5. The SAP Ariba solution validates the invoice, checking the following:
• Whether the maximum number of invoices allowed has already been reached for the specified supplier
• Whether supplier or payment information on the invoice has been used for previous one-time vendor
invoices, and if so, whether the specified supplier name is consistent with the name on previous invoices

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 • Whether the supplier invoice number has already been used for the specified supplier
6. If the invoice has validation errors, the status becomes Submitted With Errors, and it's routed to the invoice
conversion specialist. The invoice conversion specialist corrects any errors.
7. The invoice is approved and continues through the flow in the same way as a paper invoice.

Examples

The examples in this section are based on the following setup.

Supplier configuration:

• One-time vendor name: One-off Expenses

• Unique identifier for suppliers on one-time vendor invoices: supplier VAT ID.
• Maximum number of invoices per supplier: 2. Additional invoices display a warning.

User configuration:

• Three invoice entry users: A, B, and C.

User A can't add payment information to a one-time vendor invoice.
Users B and C can add payment information to a one-time vendor invoice.
• One invoice conversion specialist to resolve ICS invoice errors: C (also an invoice entry user).
• One invoice manager: D.

Approval process configuration:

• An approval rule for one-time vendor invoices adds members of the group Edit One Time Vendor Invoice
Payment Information if the preparer isn't authorized to enter payment information.
• An approval rule for one-time vendor invoices adds the Invoice Manager group for invoices with a total amount
of $500 USD or more.
• An approval rule adds the invoice conversion specialist for ICS invoices with a status of Submitted With Errors.

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54 PUBLIC Non-PO Invoices for One-Time Vendors
Example: Basic Paper Invoice

1. User A creates invoice 01 for supplier Bakery Z with VAT ID DE123456789 without specifying payment
information. The invoice amount is $300 USD.
2. The invoice is routed to user B for payment information and approval.
3. User B opens invoice 01, adds payment information, and approves the invoice.
4. Invoice 01 is fully approved, and the resulting IR document is approved.
5. Payment information is sent to the ERP system, which pays the supplier.

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Example: ICS Invoice

1. ICS provider sends invoice 02 via ICS cXML for supplier Bakery W with the same VAT ID as in invoice 01. The
invoice amount is $250 USD.
2. Because the VAT ID is the same as with invoice 01 but the supplier name is different, the invoice is routed to
user C (invoice conversion specialist) to check the supplier name.
3. User C opens the invoice 02 and sees a message that a previously submitted invoice has the same supplier ID
information but a different name.
4. User C changes the name to Bakery Z and approves invoice 02.
5. Invoice 01 is fully approved, and the resulting IR document is approved.
6. Payment information is sent to the ERP system, which pays the supplier.

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56 PUBLIC Non-PO Invoices for One-Time Vendors
Example: Paper Invoice That Exceeds the Maximum Number of Invoices Allowed

1. User A creates invoice 03 for Bakery Z with VAT ID DE123456789. The invoice amount is $600.
2. User A receives a warning that the maximum number of invoices has been exceeded for the specified VAT ID.
3. User A submits the invoice.
4. Invoice 03 is routed to user B for payment information and approval.
5. User B opens invoice 03, adds payment information, and approves invoice 03.
6. Invoice 03 is routed to user D (invoice manager) for approval due to the large amount.
7. User D approves the invoice.
8. Invoice 03 is fully approved, and the resulting IR document is approved.
9. Payment information is sent to the ERP system, which pays the supplier.

One-Time Vendors in SAP Ariba Solutions

In SAP Ariba solutions, a one-time vendor is a special type of supplier record. It's for a group of suppliers with
whom you conduct business only once or rarely.

The typical process for one-time vendor invoices is to have a type of vendor record specifically for one-time
vendor invoices (for example, a vendor record called "One-time Expenses," or several vendors for different types
of expenses, such as "Catering" and "Charitable Donations"). A one-time vendor record represents an account
from which the ERP system pays one-time vendor invoices. When the invoice entry user creates an invoice and
checks the one-time vendor option, additional fields let the user choose the type of one-time vendor and enter the
actual supplier name and payment information. The supplier and payment information is used for payments and

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remittances as well as reporting, and the invoice is registered against the one-time vendor record. The invoice can
then be routed for approval if required.

Figure 4: One-Time Vendor Invoices and Payments

In SAP Ariba, one-time vendors don't reference supplier-specific master data such as supplier name and payment
information. Instead, users enter the supplier details directly on the invoice.

The one-time vendor record contains an ID that enables invoices to be routed to the appropriate one-time vendor
account in your ERP system. One-time vendors are not actual suppliers. The suppliers aren't aware that the buyer
is processing their invoices using SAP Ariba. They're just sending invoices and getting paid.

The ERP system, SAP Business Network, and SAP Ariba Buying and Invoicing must all have corresponding one-
time vendor information for one-time vendor invoices and payments to flow correctly.

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Supplier export from SAP Ariba Buying and Invoicing includes one-time vendor records.

Table 1: Regular Suppliers Versus the Individual Suppliers Listed on One-Time Vendor Invoices

Regular supplier Supplier on one-time vendor invoice

A record for the supplier exists in the Yes No

buyer's ERP system master data and
SAP Ariba solution as part of master data

Buyer's SAP Business Network account Yes No

has a record for the supplier

Buyer has an SAP Business Network Yes No

trading relationship with the supplier

Suppliers can be notified automatically Yes No

when invoices are rejected

Payment information (for example, Remit Yes No

To addresses, bank information) is mas- Payment information for the supplier ex-
ter data associated with the supplier ists only on the invoice.

Payment information is included in pay- Yes Yes

ment exports from the SAP Ariba solu-
Payment information comes from the Payment information comes from the in-
tion so the ERP system can pay the sup-
supplier record. voice fields.
plier

Invoice information can be included in re- Yes Yes

ports

Related Information

Configuration Overview for One-Time Vendor Invoicing

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Configuring a One-Time Vendor in SAP Ariba Buying and Invoicing
Configuring SAP Business Network to Support One-Time Vendor ICS Invoices

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60 PUBLIC Non-PO Invoices for One-Time Vendors
Invoices from SAP Central Invoice Management

If your SAP Ariba site is integrated with SAP Central Invoice Management, you can receive and process invoices
from SAP Central Invoice Management.

 Note

For information about how to integrate an SAP Ariba site with SAP Central Invoice Management, see the SAP
Central Invoice Management documentation on the SAP Help Portal.

Workflow

1. An invoice is created in SAP Central Invoice Management through an upload or from an email.
2. Invoice invoice goes through the document information extraction process in SAP Central Invoice
Management.
3. The invoice is sent to the SAP Ariba solution using an API. (The invoice doesn't go through the tax and account
determination process in SAP Central Invoice Management.)

 Note

The API used in this scenario is an internal SAP Ariba API called the Invoice Management API.

4. A corresponding invoice is created in the SAP Ariba solution based on the invoice data received.
Line items are created as non-catalog items.
If errors occur when the invoice is created, they're listed on the History tab with Invoice API Error in the Action
column.
5. Additional data is filled in based on site configuration parameters, defaulting options, and supplier matching.
6. The invoice is submitted and has a status as follows:
• If there are no validation errors, the invoice has a status of Submitted.
• If the invoice has invalid or missing data based on the requirements of the SAP Ariba site, the status is
Submitted with Errors.
7. The invoice, when opened, shows a message informing the user that the invoice was generated automatically
and suggesting a verification of the information.
The Invoice Submission Method field contains either Uploaded or Email.
8. The invoice goes through the approval flow. Authorized users compare the invoice with the information in the
attached image or invoice file, updating the invoice as needed.

Tax Calculation

Keep the following in mind regarding invoices from SAP Central Invoice Management:

• Invoices from SAP Central Invoice Management don't include a field for the taxable amount in the information
sent by the API. In the SAP Ariba solution, the tax amount is calculated in based on line item amount.

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 This differs from the way taxes are calculated in SAP Central Invoice Management, where the tax amount is
calculated based on the tax percentage of the taxable amount.
• On invoices from SAP Central Invoice Management header-level taxes aren't reflected at the line level as they
are with regular SAP Ariba invoices.

Approval Process

We recommend that you update your invoice approval process to add an approver for invoices from SAP Central
Invoice Management. The approver can compare the electronic invoice with the invoice attachment and ensure
that the tax type and other fields are correct. For information, see Creating an Approval Rule for Invoices from SAP
Central Invoice Management [page 63].

Configuration Options

We recommend setting the following parameters:

• Specify a user in the parameter Default requester for invoices from invoice API
(Application.Invoicing.InvoiceAPI.DefaultRequesterUniqueName). Requester information isn't
extracted in the document information extraction process in SAP Central Invoice Management. Configuring
a default requester can help with auto-filling accounting information on the invoice.
• Set a default commodity code for noncatalog line items using the parameter Commodity code for noncatalog
invoice line items (Application.Invoicing.InvoiceCreationDefaultLineItemCommodityCode).
• Set the parameter Application.Approvable.MaxAttachmentSize to at least 20 MB.
Invoices sent from SAP Central Invoice Management to SAP Ariba have a maximum size of 20 MB.
This parameter is controlled by SAP Ariba. Setting it requires submitting case (service request) to SAP Ariba
Support.
• Make sure Application.Invoicing.ViewableInvoiceAttachmentExtensions includes all the formats
supported in SAP Central Invoice Management: PDF, PNG, JPEG, and TIFF.
This parameter is controlled by SAP Ariba. Setting it requires submitting a case (service request) to SAP Ariba
Support.
• If your site uses the advanced currency precision and rounding feature, consider aligning
your site with the precision and rounding used in SAP Central Invoice Management. Currency
precision and rounding are controlled by the Enable advanced currency precision and rounding
(Application.Base.AdvancedCurrencyPrecisionHandling).

The following parameter doesn't apply to invoices from SAP Central Invoice Management:
Application.Invoicing.EnableTaxesOnShippingAndHandlingItems (set by SAP Ariba Support).

Restrictions

• PO-based invoices aren't supported. PO-based invoices from SAP Central Invoice Management are treated as
non-PO invoices in the SAP Ariba solution.

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62 PUBLIC Invoices from SAP Central Invoice Management
• Credit memos aren't supported. Credit memos from SAP Central Invoice Management are treated as regular
invoices (with negative amounts) in the SAP Ariba solution.

 Note

In SAP Central Invoice Management, credit memos uploaded with a negative amount show a positive
amount when viewed in the Manage Supplier Invoices Centrally app. When you view the corresponding
invoices in the SAP Ariba solution, they have negative amounts. The discrepancy between positive and
negative amounts is noted on the History tab.

Related Information

Advanced Currency Precision and Rounding

Creating an Approval Rule for Invoices from SAP Central Invoice Management [page 63]
Default Requester for Invoices from Invoice API [page 115]
Commodity code for non-catalog invoice line items [page 113]

Creating an Approval Rule for Invoices from SAP

Central Invoice Management
You can add an approver for invoices loaded from another system into your SAP Ariba solution by an internal
invoice management API, for example, invoices from SAP Central Invoice Management. Approvers can compare
the newly created electronic invoice with the invoice image and ensure that the tax type and other fields are
correct.

Prerequisites

Members of the Customer Administrator or Invoicing Administrator group can manage approval processes for
invoicing.

This procedure assumes you're familiar with managing approval processes.

Context

With invoices from other systems, it's especially important for the approver to check and update the tax type. Tax
types differ from one system to another. Also, some information can change due to the defaulting configured in the
SAP Ariba site.

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  Note

The API used in this scenario is an internal SAP Ariba API called the Invoice Management API.

Procedure

1. Choose Manage Approval Processes .

2. Find and open the approval process you want to edit, and choose Edit in the approval process editor.
3. In the Approval Process Diagram section, add an approval rule, filling in a rule title and description.
4. In the Condition section, add a Field Match condition.

5. Choose Select Select Field .

The Select Field popup opens.

6. Scroll to find one of the following fields, and click Select for the field you want to use:

Option Description

LoadedFrom To define an approver to handle all invoices from SAP Central

Invoice Management.

InvoiceSubmissionMethod To define separate approvers based on how the invoice was

created in SAP Central Invoice Management, that is, whether
the invoice came from an email or from an upload.

7. From the second Select button, choose Select Value.

8. In the Value field, enter one of the following.

• If your condition is based on the LoadedFrom field, enter 11.

The value 11 represents invoices that were uploaded by the API.

• If your condition is based on the InvoiceSubmissionMethod field, enter Upload or Email.

Enter Upload for invoices uploaded into SAP Central Invoice Management:

Or enter Email for invoices created in SAP Central Invoice Management from an emailed invoice:

9. (Optional) To apply the rule only to invoices with validation errors, in the Condition section, add another Field
Match condition.
a. Select the HasValidationError field.
b. From the second Select button, choose Select Value.

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 c. In the Value window, select True.
The following example shows a condition to capture invoices that were loaded using the API and have at least
one validation error.

10. Add an action for the approval rule.

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Invoice Reconciliation Processes

Here's a list of topics that provide overviews of various processes related to invoice reconciliation.

Automatic Reconciliation [page 66]

Re-Reconciliation [page 68]

Auto-Reconciliation of Invoices When Full Credit Is Received [page 69]

Two-Way Invoice Matching in SAP Ariba Invoice Management [page 69]

Tax and Charge Exception Calculations [page 70]

Supplier Bank Details Processing [page 72]

Goods Receipt-Based Invoice Verification [page 74]

Automatic Reconciliation
Automatic reconciliation determines whether an invoice is automatically accepted, automatically rejected, or
routed to exception handlers and approvers for further processing.

Your SAP Ariba invoicing solution automatically reconciles invoices as the first part of the reconciliation process.
Automatic reconciliation consists of the following steps:

Step 1: Match

The matching process links each invoice reconciliation document (IR) to one or more orders or contracts and links
each item on the IR to one or more line items on those orders or contracts.

Step 2: Determine Whether to Validate or Skip

The automatic reconciliation process determines whether the validation of the IR can be skipped. Validation is
skipped if the total amount of the invoice is below a specified threshold amount. In the default configuration, the
skip amount is set to 5, which represents an amount in the default currency for your site.

 Note

The skip amount does not apply to credit memos. Your site might also be configured to skip exceptions in
line-level credit memos entirely.

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Step 3: Validate

Invoices that are not skipped during Step 2 are validated. During validation, invoice line item and amount values
are compared to the corresponding line item and amount values on the associated purchase order or contract (or
the receipt, in the case of goods receipt-based invoice verification), and discrepancies trigger invoice exceptions.
The approval rules for IRs configured in your site are executed to draw an approval graph and route the IR to the
appropriate exception handlers and approvers.

Step 4: Determine Whether to Auto-Accept

Invoices are automatically accepted if the header amount is less than a specified threshold amount or less than
a specified percentage of the original order. Auto-accepted invoices are automatically reconciled, and your site's
auto-acceptance configuration is based on your organization's business processes and policies for allocating
resources to manually reconcile invoices that meet certain criteria for importance. In the default configuration,
the auto-accept amount is set to 10, which represents an amount in the default currency for your site, and the
auto-accept percentage is set to 15.

For example, suppose you have a $100 purchase order that has not yet been invoiced, and an IR for $11, which
represents slightly more than 9% of the order amount. Since the auto-accept percentage is 15%, the invoice is
automatically reconciled.

 Note

Credit memos are never considered for auto-acceptance.

Step 5: Determine Whether to Auto-Reject

Invoices are automatically rejected if an invoice exception is triggered which is defined for automatic rejection. For
example, in the default configuration, the Invalid Invoice Date exception causes an invoice to be auto-rejected. An
Invalid Invoice Date exception is triggered if the invoice date is earlier than the associated purchase order date.

Auto-rejected invoices are sent back to the supplier with the status Rejected. Suppliers on SAP Business Network
can resubmit rejected invoices there after correcting errors. Depending on your site's configuration, resubmitted
invoices might use the same invoice number of a new unique invoice number. Resubmitted invoices re-enter the
invoicing process at the beginning.

 Note

Credit memos are never considered for auto-rejection.

If your site supports invoice rejection reason codes, for auto-rejected invoices, the rejection reason code is set to
AutoRejection.

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Step 6: Notify Exception Handlers/Approvers

If the invoice is not auto-rejected, the IR enters the approval process configured for your site. IRs show a status
of Reconciling until they are fully reconciled. Your site's approval rules determine whether or not the IR requires
manual approval, even if no exceptions are raised. They also determine which exception handlers are assigned to
manually resolve different types of exceptions.

Related Information

Re-Reconciliation [page 68]

SAP Ariba-Controlled Parameters for Reconciling Invoices [page 117]

Re-Reconciliation
Re-reconciliation updates an invoice reconciliation (IR) document whenever you receive against an outstanding
order or contract.

Unless your site is configured to prohibit re-reconciliation (determined by site configuration parameters that SAP
Ariba sets), IR documents are automatically re-reconciled whenever you receive against an outstanding order or
contract. An order or contract might have hundreds of unreconciled IRs; re-reconciliation allows to automatically
update those IRs to clear exceptions as new data comes in so that invoice handlers only have to resolve exceptions
that are valid at the time of reconciliation.

Updates to reconciled accumulators don't trigger re-reconciliation of IRs.

Updates to invoice exception types don't trigger automatic re-reconciliation, either. Members of the Invoice
Adminstrator and Customer Adminstrator groups can manually re-reconcile an invoice against the latest invoice
exception types using the Update Exceptions button.

The following example demonstrates the re-reconciliation process:

1. An order contains one line item with a quantity of 100.

2. The supplier creates an invoice (INV-1) against the order with a quantity of 20. No receipts have been submitted
yet.
3. The supplier creates a second invoice (INV-2) with a quantity of 30.
At this point, both IR documents have the following PO Received Quantity Variance exceptions:
• INV-1 shows PO Received Quantity Variance - The invoice item's quantity, 20, is greater than the order
item's received quantity, 0.
• INV-2 shows PO Received Quantity Variance - The invoice item's quantity, 30, is greater than the order
item's received quantity, 0.
4. 21 items are received against the order, which causes re-reconciliation of the two IR documents associated with
the order.
Now, both IRs have the following updated PO Received Quantity Variance exceptions:
• INV-1 shows the PO Received Quantity Variance exception as cleared.

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 • INV-2 shows PO Received Quantity Variance - The invoice item's quantity, 30, is greater than the order
item's received quantity, 21.

If your site does not allow re-reconciliation, the original exceptions in Step 3 of the example continue to show on the
IRs even as more items are received against the order.

Related Information

Automatic Reconciliation [page 66]

Auto-Reconciliation of Invoices When Full Credit Is Received [page 69]

Auto-Reconciliation of Invoices When Full Credit Is

Received
If you receive a line-item credit memo for the full quantity of an invoice, any exceptions on the IR document are
accepted automatically.

This is because line-item credit memos for the full invoiced quantity serve the purpose of reversing the invoice.
Automatically accepting the exceptions on the IR document prevents users from having to resolve them manually.

Only a single line-item credit memo fully reverses invoice. If two line-item credit memos are received for the same
invoice, and the second line-item credit memo has a credited quantity that is the full quantity of the invoice, any
exceptions on the invoice must be resolved manually.

 Note

If the Ignore Auto Accept option is enabled for an invoice exception type, exceptions of that type are not
accepted automatically, even if a line-item credit memo for the invoiced quantity is received.

Two-Way Invoice Matching in SAP Ariba Invoice

Management
Two-way matching between invoices and purchase orders allows you to reconcile invoices for items that do not
require a receipt.

The default matching in invoice reconciliation is between invoice, purchase order, and receipt. However, many
ERPs allow a two-way match between invoices and associated orders for line items that do not require a receipt.
These ERP systems typically include an indicator on purchase order lines that specifies whether or not receiving is
required for those lines (in SAP ERP, the indicator is the GR Based IV check box).

If you want to use two-way matching, your site must be configured to map the ReceivingType extrinsic in the
cXML OrderRequest document to the Purchase Order page in your site. If a line item's ReceivingType is set to

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4, it does not require a receipt and the invoice can be reconciled with two-way matching to the order only. If a line
item's ReceivingType is set to any value other than 4, including a blank, it requires a receipt and reconciliation
requires three-way matching between invoice, purchase order, and receipt.

On the Order Details page for purchase order lines with ReceivingType set to 4, the Receipt Required field is set
to No.

 Note

Some ERP systems indicate whether or not a receipt is required at the header level rather than the line level.
If this is the case for your integrated ERP system, the custom mapping of ReceivingType to the Purchase
Order page in your site must include a way to set the receipt required indicator at the line level in keeping with
your company's business practices and needs.

Tax and Charge Exception Calculations

Invoice tax exceptions are generated in the invoice reconciliation document in the following cases:

• Tax amounts specified on the purchase order and invoice do not match.
• The tax amounts on the invoice do not match the tax amounts calculated using the tax tables and tax code
lookup.
• The tax amount on the invoice is a buyer-payable tax. This case
applies only to sites using Enhanced third-party tax calculation for invoicing
(Application.Procure.EnableTaxCalculationInExternalSystems).

Tax Exceptions for Indirect Taxes

Two invoice exception types are used to capture variances in the tax amounts of purchase orders and invoices. The
PO Tax Amount Variance invoice exception type captures the variances in the header-level tax amounts, while the
PO Line Tax Amount Variance invoice exception type captures the variances in the line-level tax amounts. You can
only accept the invoice tax amounts to resolve these exceptions. These invoice exception types are available only in
SAP Ariba Buying and Invoicing.

The Under Tax Variance and Over Tax Variance invoice exception types capture variances in the tax amounts
specified on invoices and those calculated using the tax tables. These invoice exception types validate the amounts
against tolerances defined in your configuration.

The Tax Calculation Failed invoice exception type flags cases where the system cannot calculate the applicable
taxes based on the tax code lookup and tax tables. This invoice exception type validates the amounts against
tolerances defined in your configuration. Exceptions use a percentage tolerance. Absolute tolerances are not
appropriate for this exception type.

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Tax Exceptions for Withholding Taxes

Tax exceptions for withholding taxes are generated only when the withholding tax amount on the invoice does not
match the calculated withholding tax amount.

The Withholding Tax - Under Tax Variance and Withholding Tax - Over Tax Variance invoice exception types
capture variances in the withholding tax amounts specified in invoices and those calculated using the tax tables.
The Withholding Tax Calculation Failed invoice exception type flags cases where the system cannot calculate the
withholding tax based on the tax code lookup and tax tables. To resolve the Withholding Tax Calculation Failed
exception, you need to update your tax code lookup and recalculate taxes on the invoice reconciliation document. If
the tax code lookup has the correct tax data, it means that a withholding tax is not applicable on the invoice. in such
cases, you can reject the invoice reconciliation. These invoice exception types are available in SAP Ariba Buying and
Invoicing and SAP Ariba Invoice Management.

As withholding taxes are entered as negative numbers on invoices, the system considers their absolute amounts
when calculating tax variance exceptions. For example, if the withholding tax amount specified on an invoice is -20
and the expected tax amount is -30, the Withholding Tax - Under Tax Variance exception is generated.

Withholding taxes are calculated at either the header level or the line-item level as explained in the table below.

Withholding taxes are auto-generated in invoice reconcilia-

Invoice has withholding taxes at... tion at...

Header level Header level

Line-item level Line-item level

Neither Header or line-item level based on a site configuration parame-

ter

Buyer-Payable Tax Exceptions

The Buyer Payable Tax exception applies only to sites using Enhanced third-party tax calculation for invoicing
(Application.Procure.EnhancedTaxCalculationInExternalSystems). The exception means that the
third-party tax calculation engine marked the tax as a buyer-payable tax.

Buyer-payable taxes are tax lines the buyer pays directly to tax authorities rather than paying the supplier. The
amount owed to the supplier is 0. The calculated buyer-payable tax is accrued.

For more information, see the Tax and Charge Configuration topics.

Charge Exceptions

Charge exceptions are generated in invoice reconciliation documents when the charge amounts specified on
purchase orders and invoices do not match.

Two invoice exception types are used to capture variances in the charge amounts of purchase orders and invoices.
The PO Charge Amount Variance invoice exception type captures the variances in the header-level charge

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amounts, while the PO Line Charge Amount Variance invoice exception type captures the variances in the
line-level charge amounts. You can only accept the invoice charge amounts to resolve these exceptions. These
invoice exception types are available only in SAP Ariba Buying and Invoicing.

Related Information

Taxes on Invoices [page 37]

Charges and Discounts on Invoices [page 39]

Supplier Bank Details Processing

Suppliers can send updated bank details in cXML invoices over the SAP Business Network to your SAP
Ariba invoicing solution. Your site can be configured to receive these details and process them during invoice
reconciliation. The details can also be included in approved and reconciled invoices transmitted to SAP Business
Network.

To configure this functionality for you site, have your Designated Support Contact (DSC) log a Service
Request (SR). SAP Ariba Support will follow up to complete the request by setting the parameter
Application.Invoicing.SupportSupplierBankInfoOnInvoices.

The following bank details can be processed in your SAP Ariba solution:

• Bank ID Type
• Bank ID
• Bank Account ID
• Bank Account Type
• IBAN
• Branch Name
• Account Name

By default, the same bank details that are received in the incoming cXML invoices are included in the outgoing
reconciled invoices. However, if a user edits the remittance location during the invoice reconciliation process, then
the bank details associated with the selected remittance location (if available in the SAP Ariba solution) take
precedence and are updated in the outgoing invoices. If bank details associated with the selected remittance
location are not available, then no bank details are included in the outgoing reconciled invoices.

This feature helps the SAP Ariba solution find the correct remittance location. Following are more details about the
processing of bank details if Application.Invoicing.SupportSupplierBankInfoOnInvoices is set to Yes:

• If the supplier SAP Business Network account has one payment method configured in their remittance
information, the corresponding invoice created in the SAP Ariba solution uses the payment method and
receiving bank information from the cXML invoice.
• If there's no remittance information configured in the supplier's SAP Business Network account, the SAP Ariba
solution uses default values for the payment method and receiving bank on the invoice. To get the default
values, the SAP Ariba solution finds the first remittance location of the supplier location, and then finds the

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 payment method with the smallest rank of all payment methods defined for that remittance location. This
capability only works if the payment method is ACH or Wire.
• The SAP Ariba solution uses the following additional fields to look up right Remit To address: ABA Routing
number, Swift ID, iBanID, Account ID.
• For IR documents, if there's no matching remittance location in the SAP Ariba solution, the remittance location
on the invoice is used.
See also the self-service parameter Application.Invoicing.RemittanceLocationUsingRemitToId,
Remit To on invoice reconciliations is from invoice.
• If an invoice from SAP Business Network doesn't have a remittance location, it's not rejected in the SAP Ariba
solution.

Data import and export tasks that import invoicing and payment data include the following fields that specify bank
details:

• iBanID
• BranchName
• AccountName

The following table lists the data import tasks and the associated CSV files that contain these fields:

Data Import/Export Task CSV File(s)

Import Supplier Bank Payment Locations SupplierPaymentBankLocation.csv

Export Supplier Bank Payment Locations

Import Remittance Location Data (Consolidated File) RemittanceLocationConsolidated.csv

Export Remittance Location Data (Consolidated File)

Import Buyer Bank Payment Locations BuyerPaymentBankLocation.csv

Export Buyer Bank Payment Locations

Import Remittances Remittance.csv

 Note RemittanceDetails.csv

Export of the bank details fields is currently supported

only when using File channel. You cannot export these
fields using Web services.

Related Information

Remit To on invoice reconciliations is from invoice [page 127]

Supplier Location Matching on Invoices

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Goods Receipt-Based Invoice Verification
SAP Ariba Buying and Invoicing and SAP Ariba Invoice Management support invoice verification based on goods
receipts.

This feature is for businesses that require invoices for certain goods to be based on the price and quantity at
the time of shipping the goods rather than when the purchase order was placed. Goods receipt-based invoice
verification supports a delivery-based invoicing process, where suppliers create invoices based on ship notices,
and invoice quantities and prices are reconciled against receipts. Buyers can create multiple receipts for one ship
notice, so each invoice line can reference multiple receipts.

Optionally, you can enable users to edit the matched quantities when manually matching receipts to invoice lines.
By default, the system determines matched quantities, and they're not editable.

There are two ways receipts are matched to invoice lines:

• Using ship notice IDs. Goods receipt-based invoice verification uses the ship notice ID on the invoice and the
receipts as the common key to match receipts to invoice lines. This ID can be a ship notice, delivery note,
or other unique identifier of the shipment. Suppliers can create one ship notice for multiple shipments using
different shipping options, and you might create multiple receipts, so each invoice line can reference multiple
receipts.
• In the absence of ship notice IDs, match invoices to receipts based on the purchase order they reference.

Workflow for Goods Receipt-Based Invoice Verification in SAP Ariba Buying and Invoicing [page 75]

Workflow for Goods Receipt-Based Invoice Verification in SAP Ariba Invoice Management [page 79]

Workflows for Goods Receipt-Based Invoice Verification Without Ship Notice IDs [page 82]

Related Information

Configuring goods receipt-based invoice verification

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Workflow for Goods Receipt-Based Invoice Verification in
SAP Ariba Buying and Invoicing
The diagram shows a high-level workflow of the goods receipt-based invoice verification process. More detailed
steps follow.

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 Figure 5: High-Level Workflow of Goods Receipt-Based Invoice Verification in SAP Ariba Buying and Invoicing

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 1. A customer administrator configures some suppliers for goods receipt-based invoicing. This setting is for
supplier locations.
2. The buyer creates a requisition in SAP Ariba Buying and Invoicing.
Each requisition line item includes the field Goods Receipt-based Invoice Verification. The value of this field
(Yes or No) is copied from the supplier location. Users can't edit this field.
3. The buyer submits the requisition, which goes through the approval process. When the requisition is approved,
an order is generated and sent to SAP Business Network.
Purchase orders exported to external ERP systems include a field to indicate whether the supplier is configured
for goods receipt-based invoice verification.
4. SAP Business Network receives the order and sends it to the supplier.
5. On SAP Business Network, the supplier optionally confirms the purchase order.
6. The supplier ships the ordered items. The supplier might also send a ship notice with reference to the order.
7. A receiving agent receives the items in SAP Ariba Buying and Invoicing, specifying an ID for the shipment in
the Ship Notice field of the receipt header. The ID can be a ship notice ID, delivery note, or other shipment
identifier.
8. For each receipt item marked for goods receipt-based invoice verification, the value in the Ship Notice field is
copied to the receipt line.
9. The supplier invoices the buyer in one of the following ways:
• By creating an invoice manually in their SAP Business Network account. SAP Business Network validates
the invoice based on configured business rules. After the invoice passes validation, it's sent to SAP Ariba
Buying and Invoicing.
• By creating an invoice in their invoicing back-end system and sending it to the buyer through SAP Business
Network as a cXML or EDI invoice. SAP Business Network validates the invoice based on configured
business rules. After the invoice passes validation, it's sent to SAP Ariba Buying and Invoicing.
• By sending a paper invoice to the buyer, who then enters the invoice as an electronic copy into SAP Ariba
Buying and Invoicing. A Receipts chooser on the invoice lets buyers choose the receipts the invoice applies
to.
10. When an electronic invoice arrives from the supplier, SAP Ariba Buying and Invoicing checks whether at least
one associated receipt exists.
If an associated receipt exists, SAP Ariba Buying and Invoicing creates an invoice reconciliation (IR)
document. (This step might be delayed if your site is configured with a delay period using the parameter
Application.Invoicing.DaysToDelayIRCreation.)
If no associated receipts exist, and if a reconciliation delay period is configured, the invoice status is set to
Awaiting Receipts until one of the following has occurred:
• A receipt is created in SAP Ariba Buying and Invoicing.
• The invoice reconciliation delay period has expired.
• An invoice administrator has manually started the reconciliation process for the invoice.
11. SAP Ariba Buying and Invoicing creates an IR document and verifies the following for any invoice line where the
associated order line indicates that goods receipt-based verification is required:
• The quantity of items on the invoice and the receipts match within the defined tolerance limits.
• The unit price of items on the invoice and the receipts match within the defined tolerance limits.
• The amount for items on the invoice and the receipts match within the defined tolerance limits.
12. Invoice agents reconcile exceptions in SAP Ariba Buying and Invoicing. Receiving managers can reconcile
exceptions related to missing receipt references, receipt quantity variances, and missing shipment references.
If no matching receipts are found based on the Ship Notice field, the invoice line items can be manually
matched to available receipts for the order. One reason that SAP Ariba Buying and Invoicing might not find

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 associated receipts is because of user error, where an incorrect shipment identifier was entered on the receipts
or the invoice.
13. When the IR document is approved, SAP Ariba Buying and Invoicing sends a payment request, including
associated receipt references, to the external ERP system for payment.

Returns and Line-Item Credit Memos

Returns are processed as negative receipts that are linked to an existing receipt. When SAP Ariba Buying and
Invoicing receives a return, it recalculates the Available Qty for the original receipt. For example, if receipt R1 has a
quantity of 10 boxes, and the receiving agent rejected 2 boxes, the available quantity for R1 now is 8.

Line-item credit memos include a reference to the original invoice, which means any receipts attached to the
original invoice are used when matching the credit memo. Line-item credit memos affect goods receipts as follows:

• The invoiced quantity, or allocated quantity, decrements based on a negative quantity in the line-item credit
memo.
• The available quantity increments.

Overallocation and Underallocation of Receipts to Invoice Lines

SAP Ariba Invoice Management handles overallocation and underallocation of available receipts to invoice lines as
follows:

• If the exception handler selects more receipts than required based on the invoiced quantity, SAP Ariba Buying
and Invoicing drops any overallocated receipts. If the last receipt in the list leads to a greater total received
quantity than the invoiced quantity, SAP Ariba Buying and Invoicing matches only the required quantity. The
remaining (not matched) quantity is available for allocation to other invoices.
• If the exception handler selects fewer receipts than required to match the invoice quantity, SAP Ariba Buying
and Invoicing accepts the underallocation after confirmation by the user and generates a Receipt Quantity
Variance exception. Subsequent exception handlers can then either add additional matching receipts, or
resolve the exception by accepting the invoiced quantity.

Related Information

Workflows for Goods Receipt-Based Invoice Verification Without Ship Notice IDs [page 82]

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78 PUBLIC Invoice Reconciliation Processes
Workflow for Goods Receipt-Based Invoice Verification in
SAP Ariba Invoice Management
The diagram shows a high-level workflow of the basic goods receipt-based invoice verification process. More
detailed steps follow.

Figure 6: High-Level Workflow of Goods Receipt-Based Invoice Verification

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1. The buyer sends an approved purchase order for one or more items from an integrated ERP system to SAP
Business Network.
2. SAP Business Network receives the order, sends it to the supplier, and sends a copy of the order to SAP Ariba
Invoice Management.
3. On SAP Business Network, the supplier optionally confirms the purchase order.
4. The supplier ships the ordered items and sends a ship notice with reference to the order.
5. The buyer receives the items in the ERP system, and the ERP system sends a copy of the receipt to SAP Ariba
Invoice Management. The copy of the receipt must include the ship notice number, which might be manually
entered by the receiving agents.
6. The supplier invoices the buyer by using one of the following options:
• By creating an invoice manually in their SAP Business Network account. In this case, the business rules
ensure that suppliers can only invoice for shipped quantities when creating the invoice from the purchase
order. The rules also ensure that the invoice includes the ship notice reference. After the invoice passes the
SAP Business Network validation, it's sent to SAP Ariba Invoice Management.
• By creating an invoice in their invoicing backend system and sending it to the buyer via SAP Business
Network as a cXML or EDI invoice. SAP Business Network validates the invoice based on the business
rules. For example, if the supplier referenced an incorrect ship notice on the invoice or if the ship notice ID
is missing, SAP Business Network rejects the invoice.
• By sending a paper invoice to the buyer, who then enters the invoice as an electronic copy into SAP Ariba
Invoice Management. After the invoice is approved, an invoice copy is sent to the suppliers to allow them to
track the invoice and payment approval process.
7. SAP Ariba Invoice Management checks if at least one associated receipt exists for the invoice.
If an associated receipt exists, SAP Ariba Invoice Management creates an invoice reconciliation document
(unless your site is configured with a delay period using the parameter Days to delay creating an IR
document( Application.Invoicing.DaysToDelayIRCreation).
If no associated receipts exist, and if a reconciliation delay period is configured, the invoice is set to the status
Awaiting Receipts until one of the following has occurred:
• SAP Ariba Invoice Management has received one or more applicable receipts from the ERP system.
• The invoice reconciliation delay period has expired.
• An invoice administrator has manually started the reconciliation process for the invoice.

 Note

As with all status changes, the change from Submitted to Awaiting Receipts might take some time,
depending on how many documents your site is processing.

8. SAP Ariba Invoice Management creates an invoice reconciliation document and verifies the following for any
invoice line where the associated order line indicates that goods receipt-based verification is required:
• The quantity of items on the invoice and the receipts match within the defined tolerance limits.
• The unit price of items on the invoice and the receipts match within the defined tolerance limits.
9. Invoice agents reconcile exceptions in SAP Ariba Invoice Management. If matching receipts based on the ship
notice ID can't be found, invoice agents can manually match the line item on the invoice to available receipts
for the order. One reason that SAP Ariba Invoice Management might not find associated receipts is because of
user error, where the incorrect ship notice ID was entered on the receipts or the invoice.
10. SAP Ariba Invoice Management includes a member of the Receiving Manager group to reconcile exceptions
related to missing receipt references, receipt quantity variances, and missing ship notice references.
11. SAP Ariba Invoice Management sends the invoice reconciliation to the external ERP system. In the ERP system,
the invoice reconciliation lines are split based on matching receipt lines (multiple InvoiceDetailOrder
segments for each line item on the invoice reconciliation).

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 Line-level ship notice information isn't included for items marked for goods receipt-based invoice verification.
12. If no external approval of the invoice reconciliation is required, the invoice is approved for payment in SAP
Ariba Invoice Management, an invoice status update is sent to the supplier on SAP Business Network, and SAP
Business Network sends the approved invoice to the ERP system.
If external approval of the invoice reconciliation is required, a user in the ERP system reconciles any exceptions
and approves the invoice reconciliation there. The ERP system then sends the status update to SAP Business
Network, which updates the invoice status for suppliers and sends the status update to SAP Ariba Invoice
Management.

Returns and Line Item Credit Memos

Returns are processed as negative receipts that are linked to an existing receipt. When SAP Ariba Invoice
Management receives a return, it recalculates the Available Qty for the original receipt. For example, if receipt
R1 has a quantity of 10 boxes, and the receiving agent rejected 2 boxes, the available quantity for R1 now is 8.

Line item credit memos include a reference to the original invoice, which means any receipts attached to the
original invoice are used when matching the credit memo. Line item credit memos affect goods receipts as follows:

• The invoiced quantity, or allocated quantity, decrements based on a negative quantity in the line item credit
memo.
• The available quantity increments.

Overallocation and Underallocation of Receipts to Invoice Lines

SAP Ariba Invoice Management handles overallocation and underallocation of available receipts to invoice lines as
follows:

• If the exception handler selects more receipts than required based on the invoiced quantity, SAP Ariba Invoice
Management drops any overallocated receipts. If the last receipt in the list leads to a greater total received
quantity than the invoiced quantity, SAP Ariba Invoice Management matches only the required quantity. The
remaining (not matched) quantity is available for allocation to other invoices.
• If the exception handler selects fewer receipts than required to match the invoice quantity, SAP Ariba Invoice
Management accepts the underallocation after confirmation by the user and generates a Receipt Quantity
Variance exception. Subsequent exception handlers can then either add additional matching receipts, or
resolve the exception by accepting the invoiced quantity.

Related Information

Workflows for Goods Receipt-Based Invoice Verification Without Ship Notice IDs [page 82]

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Workflows for Goods Receipt-Based Invoice Verification
Without Ship Notice IDs

The following workflows illustrate how invoices are matched to receipts when the invoice doesn't include a ship
notice ID.

These workflows apply to sites that allow invoices without ship notice IDs to be automatically matched to receipts
based on purchase order. The SAP Ariba solution matches the invoice to the receipt for the same purchase order.
If there are multiple available receipts, they are picked in the ascending order based on when the receipts were
created.

Basic Flow

1. The buyer sends the supplier an order for items marked for goods receipt-based invoice verification.
2. The buyer receives the items and creates a receipt that includes a ship notice ID.
3. The supplier sends an invoice for the items.
4. The SAP Ariba solution checks the invoice for a ship notice ID.
5. If the invoice doesn't include a ship notice ID, the SAP Ariba solution looks for a receipt for the purchase order
that's referenced on the invoice, and matches the invoice to that receipt.
6. The SAP Ariba solution raises quantity variance or price variance exceptions as appropriate.

When the Invoice Comes in Before the Receipt Is Created

In this workflow, the buyer manually matches additional receipts to the invoice to resolve the exception. If a
quantity variance exception is raised after the invoice is matched to receipts for the same PO, the only way to
resolve it is to manually match any additional receipts to the invoice.

1. The buyer sends the supplier an order for items marked for goods receipt-based invoice verification.
2. The supplier sends an invoice for the items. The invoice doesn't include a ship notice ID.
3. Upon receiving the invoice, the SAP Ariba solution looks for but doesn't find a matching receipt.
4. The SAP Ariba solution raises a Matching Receipt Not Found exception against the invoice because the
receipt doesn't exist yet.
5. The buyer creates a receipt for the order. The receipt includes a ship notice ID.
6. The SAP Ariba solution matches the invoice to the receipt and clears the Matching Receipt Not Found
exception.

When There Are Multiple Receipts for the Purchase Order That's Referenced on the Invoice

1. The buyer sends the supplier an order for an item marked for goods receipt-based invoice verification. The
quantity of the item is 100.
2. The buyer receives 20 of the items and creates a receipt. The receipt includes a ship notice ID.

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 3. The buyer receives 20 more of the items and creates a receipt. The receipt includes a ship notice ID. (The ship
notice ID can be either the same as or different from the one on the previous receipt.)
4. The supplier sends an invoice for 30 of the items. The invoice doesn't include a ship notice ID.
5. The SAP Ariba solution matches the invoice to both receipts, matching a quantity of 20 for the first receipt and
a quantity of 10 for the second receipt.

When a Quantity Variance Exception Is Raised After the Invoice Is Matched to Receipts for the
Same Purchase Order

1. The buyer sends the supplier an order for an item marked for goods receipt-based invoice verification. The
quantity of the item is 100.
2. The buyer receives 20 of the items and creates a receipt. The receipt includes a ship notice ID.
3. The supplier sends an invoice for 30 of the items. The invoice doesn't include a ship notice ID.
4. The SAP Ariba solution matches the invoice to the receipt.
5. A Receipt Quantity Variance exception is raised.
6. The buyer receives 20 more of the items and creates a receipt. The receipt includes a ship notice ID. (The ship
notice ID can be either the same as or different from the one on the previous receipt.)
7. The SAP Ariba solution continues to match the invoice to the first receipt only. It doesn't automatically match
the invoice to the second receipt. The invoice reconciliation document still has a Receipt Quantity Variance
exception.
8. The buyer manually matches the second receipt to the invoice.
9. The SAP Ariba solution clears the Receipt Quantity Variance exception.

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Payment Processes

Here's a list of topics that provide overviews of various processes related to the payment of invoices.

External System Payment Model [page 84]

Invoices from Subcontractors [page 85]

Payment Terms [page 87]

Discount Management [page 89]

External System Payment Model

Payment models determine where payments are scheduled. SAP Ariba supports the External System payment
model, which means payments are scheduled and processed through an external ERP system.

The previously available Ariba Pay payment model option is no longer available to customers who are not already
using it.

The payment process consists of the following phases:

• The payment scheduling phase, in which you review and finalize a payment request
• The payment settlement phase, in which the actual payment is executed

In the external system payment model, initial scheduling of payments occurs in the SAP Ariba invoicing solution,
but the final payment scheduling and payment processing occurs in the external system. The following steps
describe the payment process for external system payments:

1. The SAP Ariba invoicing solution initially schedules the payment based on the payment terms [page 87]
defined in the invoice.
2. SAP Ariba Invoice Management sends invoices approved for payment through your SAP Business Network
account in cXML format to your external ERP system. SAP Ariba Buying and Invoicing send approved invoices
in OK-to-Pay files to the external system.
3. The external system creates a matching invoice record and schedules the payment.
4. Remittance information is imported from the external system into your SAP Ariba solution , and the invoice
reconciliation is marked Paid after the remittance data is received and the clearance period defined for the
payment method has passed for all payment (remittance) transactions associated with the invoice.

When the external system creates a matching invoice record, it sends an update back to SAP Ariba, where the
invoice reconciliation is updated with the external system invoice ID. Your external system can submit payment
request updates and remittance information through the payment integration toolkit to SAP Business Network to
ensure that payment-related information is synchronized between SAP Business Network, your SAP Ariba invoicing
solution, and the external system.

When an IR is approved, the associated payment request status changes to Scheduled. If you get back payment
remittance data from your external system, the system then generates a payment transaction with a status of
Paid. If the data indicates that the invoice was not paid in full (underpayment), the system creates a new payment

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request document for you to track and process payment of the outstanding balance. The ID of the new payment
request is the same as the original payment request, plus a suffix, such as -1.

Underpayments and overpayments are noted on the History tab of the IR document.

If the payment is canceled by the external system, when that cancellation data is received, a payment transaction
with the status Cancelled is created in the SAP Ariba invoicing solution.

If your external system fails to create an associated invoice for the payment, the payment request remains in
Scheduled status and the IR status changes to Push Failed. The History tab of the payment also notes that the
push has failed.

Payments for advance payment documents in SAP Ariba Buying and Invoicing

The payment process for advance payment documents is similar to that of invoices. Approved advance payments
are exported to the external system for payment processing, using the web services or file channel. The status
of the advance payment document changes to Paying when the external system sends an acknowledgment for
the advance payment document. The external system then processes the payment and sends the remittance
information. The status of the advance payment document changes to Paid when remittance information is
received for its entire amount.

Related Information

Payment Document Status Flow [page 92]

Advance Payment Workflow [page 9]
Advance Payment Status Flow [page 99]

Invoices from Subcontractors

Businesses in some regions are required to categorize their suppliers as subcontractors to ensure timely
payments of the orders placed with such suppliers. To ensure that subcontractors are paid on time, invoices from
subcontractors have payment schedules tied to the date of delivery.

If your site supports subcontractor information on receipts, the Date Delivered field from the receipt is used to
calculate payment due date. The Date Delivered field is shown on the payment request.

The following parameters control support for subcontractor information in the procurement process:

• Identify purchase orders for subcontractors

(Application.Procure.EnableSupplierAsSubContractor)
• Include subcontracting details in receipts
(Application.Procure.EnableSubcontractingForReceiving)

When buyers receive an item from a supplier marked as a subcontractor, they fill in the Date Delivered field on the
receipt. That date is then used to calculate the payment schedule.

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Payment Processes PUBLIC 85
If a receipt has multiple items with different delivery dates, the payment request uses the earliest delivery date.
More specifically, the payment request uses the earliest date of all approved receipts and their receipt items
(including rejected items) at the time the invoice reconciliation (IR) document was fully reconciled and approved.
This is the case regardless of which PO items are on the invoice.

If the buyer reconciles and approves an invoice from a subcontractor before receiving the items, the payment
schedule is determined in the same way as for non-subcontractor invoices. Receipts approved after an invoice has
been reconciled and approved don't affect the payment schedule.

 Restriction

Subcontractor information is not supported for summary (or multi-PO) invoices. A summary invoice is
an invoice associated with multiple purchase orders. The payment schedule for multi-PO invoices from
subcontractors is not based on delivery date.

 Example

Payment flow for a receipt with multiple delivery dates

1. A purchase order contains Item 1 and Item 2.

2. On the receipt, Date Delivered for Item 1 is July 3, 2020. Date Delivered for Item 2 is August 15, 2020.
3. The supplier sends an invoice for one or both items.
4. The IR document is reconciled and approved.
5. On the payment request, the Date Delivered is July 3, 2020, the earliest delivery date of both items.

 Example

Payment flow for items received after the first invoice is reconciled and approved

1. A purchase order contains Item 1, Item 2, and Item 3.

2. The receipt has multiple delivery dates:
• Date Delivered for Item 1 is October 2, 2020.
• Date Delivered for Item 2 is October 11, 2020.
• Item 3 hasn't been received yet.
3. The supplier invoices for one or two of the items.
4. The IR document is reconciled and approved.
5. On the payment request, the Date Delivered is October 2, 2020, the earliest delivery date on the receipt.
6. Item 3 is received. On the receipt, Date Delivered for Item 3 is September 30, 2020.
7. The supplier sends a second invoice for the order. The IR document is reconciled and approved.
8. On the payment request for the second invoice, Date Delivered is September 30, 2020.

Related Information

Subcontractor Information for Suppliers on Requisitions

Receipts for Orders from Subcontractors

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86 PUBLIC Payment Processes
Payment Terms
Payment terms specify when a supplier must be paid for an invoice and define any discounts available for early
payment.

An administrator configures payment terms in your site. They are stored with supplier information and appear on
purchase orders, invoices, and IRs. Payment terms typically include:

• A unique ID, such as PT1

• A title, such as Net 45, 2%/30, 3%/20
• A description that can indicate the number of days within which the payment must be made and related
information, such as discounts offered for early payments or other incentives

For example, you might see payment terms displayed as:

ID PT1

Title Net 45, 2%/30, 3%/20

Description Net amount due in 45 days, 2% discount if paid in 30 days, 3%

discount if paid in 20 days

Terms Pay in days Discount

45 0%
30 2%
20 3%

The system compares payment terms that appear on invoices with payment terms defined in the
related purchase order or contract. If the payment terms do not match, the system creates an
invoice exception that must be reconciled. (If you want to avoid these exceptions and enforce
the payment terms on the PO or contract, you can have SAP Ariba set the site parameter
Application.Invoicing.InvoiceTypesThatOverridePaymentTerms.)

 Caution

All payment terms are assumed to be NET payment terms and are displayed as such to suppliers on SAP
Business Network. Support for non-NET payment terms, such as EOM payment terms, can be configured
through a customization project.

 Note

In the default configuration, only standard line items (not additional charges such as taxes or shipping) are
included when payment discounts are calculated. Your site might be configured to include additional line item
types in discount calculations.

If the default payment terms at the header level of the initial purchase order to be updated when the
subsequent version of the purchase order is created, enable the Update default payment terms at the
header level of the initial purchase order when the subsequent version of the purchase order is created
(Application.Purchasing.UpdateDefaultPaymentTermsOnPOHeader) parameter to prevent the mismatch
in the payment terms between the initial and subsequent versions of the purchase orders. For more information,
see .

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Payment Date and Due Date Calculations

Payment date and due date are calculated based on your site's configuration and the payment terms on the
invoice.

The payment terms on the invoice and the payment policy configuration for your site determine the payment date
and the due date for a payment request. The payment date determines when the payment is processed, taking
into account any available discounts, and the due date determines the last day the payment can be made without
becoming overdue.

The following settings control payment date and due date calculations:

• Your payment policy configuration: take maximum discount, take no discount, or take applicable discount
• Your site's configuration: by default the effective date for the payment due date calculations is the invoice
reconciliation approval date, but your site might use the invoice delivery date or due date instead.

The following examples demonstrate how the due date and payment date are calculated based on the payment
terms and system configurations.

Example: No Discount, Effective Date Is Approval Date

Payment terms are Net 30, no discount, and the invoice reconciliation is approved on June 1.

In this example, the payment date and the due date are set to July 1.

Example: No Discount, Effective Date Is Delivery Date

Payment terms are Net 30, no discount, and the item is delivered on June 1.

In this example, the payment date and the due date are set to July 1.

If there are multiple items on the receipt with different delivery dates, the earliest delivery date is used as the
effective date.

Example: Take Maximum Discount, Effective Date Is Approval Date

The payment terms are Net 30 days, 20 days 2%, 15 days 3%. The invoice reconciliation is approved on June 1.

In this example, the due date is set to July 1, the payment date is June 16, and the discount applied to the payment
is 3%.

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88 PUBLIC Payment Processes
Example: Take Applicable Discount, Effective Date Is Invoice Date

The payment terms are Net 30 days, 20 days 2%, 15 days 3%. The invoice date is May 15. the invoice reconciliation
is approved on June 1.

In this example, the due date is July 1, the payment date is June 4, and the discount applied to the payment is 2%.

Example: Take No Discount, Effective Date Is Approval Date

The payment terms are Net 30 days, 20 days 2%, 15 days 3%. The invoice date is May 15. The invoice reconciliation
is approved on June 1.

In this example, the due date and the payment date are set to July 1 and no discount is applied.

Example: Take No Discount, Effective Date Is Invoice Date

The payment terms are Net 30 days, 20 days 2%, 15 days 3%. The invoice date is May 15. The invoice reconciliation
is approved on June 1.

In this example, the due date and the payment date is set to June 14 and no discount is applied.

Related Information

SAP Ariba-Controlled Parameters for Managing Payment Documents [page 135]

SAP Ariba-Controlled Parameters for Creating and Managing Invoices [page 101]
Invoices from Subcontractors [page 85]

Discount Management
Discount management allows you and your suppliers to agree to early payment in exchange for discounts.

Discount management is a process that allows you and your suppliers to request or offer early payment in
exchange for discounts from the supplier. Early payment can be initiated by your organization and offered to
selected or all suppliers, or by the supplier.

In order to take advantage of discount options, your external system must be configured to flag payment proposals
for early discount, and your SAP Business Network account must be enabled and configured for discount
management.

Discount management requires ERP integration using the payment integration toolkit. The discount management
process flow depends on the features enabled in your site and the integration options you have implemented. Ariba
provides the following options:

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Payment Processes PUBLIC 89
• Integration using the Payment Request file (OK-to-pay file) generated in SAP Ariba Procurement solutions. If
your site is configured for SAP Ariba Buying and Invoicing only, then this is the only integration option.
• Integration through cXML. If your site is configured for SAP Ariba Invoice Management only, then this is the
only integration option.

Discount Process with OK-to-Pay File Integration [page 90]

Discount Process with for CXML Integration [page 91]

Discount Process with OK-to-Pay File Integration

The following steps describe the discount management process in sites with payment request file (OK-to-pay file)
integration:

1. After an invoice is fully reconciled and approved, your SAP Ariba invoicing solution sends a payment request
(payment proposal) to SAP Business Network.
2. The payment request file (OK-to-pay file) is exported from your SAP Ariba invoicing solution and imported into
an external ERP system.
3. Depending on the ERP implementation, payment managers review the payment requests in the external
ERP system and flag invoices allowed for discounting, or invoices are automatically selected for discount
management in the ERP.
4. When the payment request is created in the ERP, and every time the payment request is updated in the ERP,
a payment request update operation is sent to SAP Business Network from the ERP through the payment
integration toolkit. Payment requests that are allowed for dynamic discounting have the cXML extrinsic
element immediatepay set to yes in the PaymentProposalRequest document you send to SAP Business
Network.
5. When SAP Business Network detects that an invoice is allowed for early payment, it sends email notifications
to alert the supplier (if buyer-initiated) or the payment manager in your organization (if supplier-initiated) to
reject or accept the offer. Discount negotiations are managed entirely on SAP Business Network.
6. Once the offer is accepted, a payment request download operation is sent to the ERP from SAP Business
Network through the payment integration toolkit.

 Note

Neither the updated nor the negotiated payment proposals will be available in your SAP Ariba invoicing
solution.

7. After the payment has been made in the ERP, the payment remittance transactions are sent to SAP Business
Network through the payment integration toolkit.
8. SAP Business Network sends the payment remittance information to your SAP Ariba invoicing solution.

Related Information

Discount Management [page 89]

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90 PUBLIC Payment Processes
Discount Process with for CXML Integration
The following steps describe the discount management process in sites with cXML integration:

1. After an invoice is fully reconciled and approved, the SAP Ariba solution sends an invoice status update to SAP
Business Network.
2. The cXML invoice is downloaded from SAP Business Network to the external ERP through an adapter, which
creates a payment proposal (payment request) in the ERP.
3. Depending on the ERP implementation, payment managers review the payment requests in the external ERP
system and flag payment requests allowed or discounting or payment requests are automatically selected for
discount management in the ERP. Payment requests that are allowed for dynamic discounting have the cXML
extrinsic element immediatepay set to yes in the PaymentProposalRequest document you send to SAP
Business Network.
4. The adapter pulls the payment proposals (Pay Me Now for invoices proposed for early payment) from the
ERP and sends them to SAP Business Network, which creates a new payment proposal transaction on SAP
Business Network.
5. When SAP Business Network detects that an invoice is allowed for early payment, it sends email notifications
to alert the supplier (if buyer-initiated) or the payment manager in your organization (if supplier-initiated) to
reject or accept the offer. Discount negotiations are managed entirely on SAP Business Network.
6. Once the offer is accepted, a payment proposal update operation is sent to the external system from SAP
Business Network through the adapter and the payment request is updated in the SAP Ariba solution. Users
can view the payment requests, but they cannot update them.
7. After the payment has been made in the ERP, the payment remittance transactions are sent to SAP Business
Network through the payment integration toolkit (the payment integration toolkit allows submitting payment
batch information, which is not available if payment remittance information is transmitted through an adapter.)
8. SAP Business Network sends the payment remittance information to your SAP Ariba invoicing solution.

Related Information

Discount Management [page 89]

Invoicing and Payment Process Guide

Payment Processes PUBLIC 91
Payment Document Status Flow

Your invoicing solution updates the status of payment documents at various points in the invoice reconciliation and
payment process.

The status flow described in the following table is for the External Pay payment model only.

SAP Business Network

Invoice Reconciliation Payment Request Sta- Payment Transaction routing status/invoice

Activity (IR) Status tus Status status

An invoice is approved Reconciling Processing n/a Acknowledged/Sent

Reconcile an invoice Reconciling -> Processing n/a Acknowledged/Sent

reconciliation (IR) docu- Approving
ment

An IR document is ap- Paying Scheduled n/a Acknowledged/

proved Approved

Approve an IR (IR sent Approving -> Awaiting Processing n/a Acknowledged/

External Reconciliation
to ERP for additional Approved
reconciliation or appro-
val. Not applicable in
SAP Ariba Buying and
Invoicing-only sites)

ERP fails to create in- Awaiting External Processing n/a Acknowledged/

Reconciliation -> Push
voice reconciliation (not Approved
Failed
applicable in SAP Ariba
Buying and Invoicing-
only sites)

ERP fails to create Paying -> Push Failed Processing n/a Acknowledged/
invoice for scheduled Approved
payment (SAP Ariba In-
voice Management)

ERP fails to create Paying -> Paying Failed Sending Acknowledged/

invoice for scheduled
Approved
payment (SAP Ariba
Buying and Invoicing-
only sites that use the
Asynchronous or Direct
Push payment request
sending option)

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92 PUBLIC Payment Document Status Flow
 SAP Business Network

Invoice Reconciliation Payment Request Sta- Payment Transaction routing status/invoice

Activity (IR) Status tus Status status

ERP reconciles IR and Awaiting External Processing -> n/a Acknowledged/

sends Invoice Status Reconciliation -> Scheduled
Approved
Update Request (SUR) Paying
(not applicable in SAP
Ariba Buying and In-
voicing-only sites)

ERP moves reconciled Paying -> Awaiting Processing -> n/a n/a
invoice back to Process- External Reconciliation Scheduled
ing in the ERP (invoice
in SAP Ariba Invoice
Management is an ERP
invoice copy) (SAP ERP
and Oracle ERP only)

(Optional and depend- Paying Scheduled n/a Acknowledged/

ing on your site's con- Approved
figuration) SAP Busi-
ness Network receives
a payment proposal re-
quest update from the
ERP system

Payment remittance Paying Scheduled -> Paying Paid Acknowledged/Paid

data is received

Payment clearance pe- Paying -> Paid Paying -> Paid Paid -> Cleared Acknowledged/Paid
riod has passed (de-
pending on your site's
configuration, either the
clearance period is
specified per payment
method or your site
receives a payment re-
mittance update with
status Cleared through
SAP Business Network)

Deny a cancel invoice Canceling -> Processing n/a Acknowledged/Sent

Reconciling

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Payment Document Status Flow PUBLIC 93
 SAP Business Network

Invoice Reconciliation Payment Request Sta- Payment Transaction routing status/invoice

Activity (IR) Status tus Status status

Invoice is canceled or Paying or Paying Failed Paying->Rejected n/a Acknowledged/

reversed in ERP system -> Rejected Rejected
Payment requests can
while the IR document
also be rejected
is in Paying or Paying
when they have a
Failed status
status of On Hold,
Sending, Scheduling,
or Scheduled.

ERP cancels invoice Paid -> Paying -> Paid->Rejected Paying

while the IR document Rejected
is in Paid status

ERP cancels invoice (in- Paying ->Rejected Rejected n/a

voice in SAP Ariba In-
voice Management is an
ERP invoice copy) (SAP
ERP and Oracle ERP
only)

Related Information

External System Payment Model [page 84]

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94 PUBLIC Payment Document Status Flow
Invoice and Invoice Reconciliation Status Flow

Your SAP Ariba invoicing solution updates the status of invoice and invoice reconciliation documents, and
associated payment requests, at different stages of the invoice and invoice reconciliation workflow.

SAP Business Network

Invoice reconciliation Payment request sta- routing status/invoice
Activity Invoice status status tus status

Receive an invoice from Submitted n/a n/a Acknowledged/Sent

the ERP

Create an invoice in Submitted n/a n/a n/a

your SAP Ariba solution

Receive an invoice from Submitted or n/a n/a Acknowledged/Sent

SAP Business Network Submitted with Errors
(not sent by an invoice (if there are validation
conversion service) errors, for example, due
to policies configured in
the SAP Ariba solution)

Receive an invoice that Submitted or n/a n/a Depends on the situa-

was sent to SAP Busi- Submitted with Errors tion. See Invoice Valida-
ness Network by an in- (if there are validation tion and Exception Han-
voice conversion serv- errors, for example, in- dling on SAP Business
ice (ICS) complete or image-only Network.
invoices)

Import an external Submitted or n/a n/a n/a

cXML invoice using an Submitted with Errors
HTTP API (if there are validation
errors)

Receive an invoice from Submitted or n/a n/a n/a

SAP Central Invoice
Submitted with Errors
Management through
(if there are validation
an API
errors, for example, in-
complete or image-only
invoices)

Receive an information- Loaded n/a n/a n/a

only invoice from SAP
Business Network 1

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Invoice and Invoice Reconciliation Status Flow PUBLIC 95
 SAP Business Network
Invoice reconciliation Payment request sta- routing status/invoice
Activity Invoice status status tus status

Approve an invoice Submitted -> Reconciling Processing Acknowledged/ Sent

Approved -> (CC
Invoice to AN 2) ->
Reconciling

Reconcile an invoice Reconciling Reconciling -> Processing Acknowledged/Sent

reconciliation (IR) Approving

Reject an IR Reconciling -> Rejected n/a Acknowledged/

Reconciled Rejected

Receive a cancel invoice Loaded -> Canceling Reconciling -> n/a Acknowledged/Sent
from SAP Business Net- Canceling
work

Approve a cancel in- Canceling -> Canceled Canceling -> Canceled n/a n/a
voice

Deny a cancel invoice Canceling -> Canceling -> Processing Acknowledged/Sent

Reconciling Reconciling

Invoice is automatically Submitted -> Canceled n/a n/a Acknowledged/

canceled after the Canceled
corresponding service
sheet is rejected.

Approve an IR (no addi- Reconciling -> Approving -> Approved Processing -> Acknowledged/
tional external ERP rec- Reconciled -> Paying Scheduled Approved
onciliation required)

(For sites that use

the Default payment re-
quest sending option)

Approve an IR (no addi- Reconciling -> Approving -> Approved Processing -> Sending Acknowledged/
tional external ERP rec- Reconciled -> Paying -> Scheduled Approved
onciliation required)

(SAP Ariba Buying and

Invoicing-only sites that
are configured to use
the Asynchronous or
Direct Push payment
request sending option)

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96 PUBLIC Invoice and Invoice Reconciliation Status Flow
 SAP Business Network
Invoice reconciliation Payment request sta- routing status/invoice
Activity Invoice status status tus status

ERP fails to create Reconciled Paying -> Push Failed Processing Acknowledged/
invoice for scheduled Approved
payment (SAP Ariba In-
voice Management)

ERP fails to create Reconciled Paying -> Paying Failed Sending Acknowledged/
invoice for scheduled Approved
payment (SAP Ariba
Buying and Invoicing-
only sites that use
the Asynchronous or
Direct Push payment
request sending option)

Approve an IR (IR sent Reconciling Approving -> Awaiting Processing Acknowledged/Sent

to ERP for additional External Reconciliation
reconciliation or appro-
val. Not applicable in
SAP Ariba Buying and
Invoicing-only sites)

ERP fails to create in- Reconciling Awaiting External Processing Acknowledged/

voice reconciliation (not Reconciliation -> Push Approved
applicable in SAP Ariba Failed
Buying and Invoicing-
only sites)

ERP reconciles IR and Reconciling -> Awaiting External Processing -> Acknowledged/
sends Invoice Status Reconciled Reconciliation -> Scheduled Approved
Update Request (SUR) Paying
(not applicable in SAP
Ariba Buying and In-
voicing-only sites)

ERP cancels invoice (in- Reconciled Paying -> Canceled Canceled n/a
voice in SAP Ariba In-
voice Management is an
ERP invoice copy) (SAP
ERP and Oracle ERP
only)3

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Invoice and Invoice Reconciliation Status Flow PUBLIC 97
 SAP Business Network
Invoice reconciliation Payment request sta- routing status/invoice
Activity Invoice status status tus status

ERP moves reconciled Reconciled -> Paying -> Awaiting Processing n/a
invoice back to Process- Reconciling External Reconciliation
ing in the ERP (invoice
in SAP Ariba Invoice
Management is an ERP
invoice copy) (SAP ERP
and Oracle ERP only)3

ERP cancels invoice Reconciled -> Rejected Paying or Paying Failed Paying -> Rejected Acknowledged/
while the IR document -> Rejected Rejected
is in Paying or Paying
(Rejected automatically
Failed status
in SAP Ariba Invoice
Management. In SAP
Ariba Buying and In-
voicing, rejected when
Force Reject button is
clicked.)

ERP cancels payment Reconciled -> Paying Paid -> Paying Paying n/a

transaction while the IR

document is in Paid sta-
tus

1Information-only invoices can only be submitted by suppliers through SAP Business Network. Typically, a supplier
will cancel an information-only invoice after submitting a final invoice.
2The CC Invoice to AN status applies only for invoices created manually in your invoicing solution on behalf of a
supplier who is enabled on SAP Business Network. The supplier can view the CC invoice and track its status on SAP
Business Network.
3ERP invoice copies are information-only copies of invoices that are managed and reconciled entirely in the external
ERP system. Each ERP invoice copy has a corresponding information-only invoice reconciliation. Neither document
is editable. ERP invoice copies are only available in sites enabled for SAP Ariba Invoice Management and for SAP
Fieldglass invoices in SAP Ariba Buying solutions integrated with SAP Fieldglass .

Related Information

Forced Reconciliation of CC Invoices

Invoice Reconciliation for Documents in Paying or Paying Failed Status
Invoice Reconciliation for Documents in Rejecting Status
Invoice Reconciliation for Documents Awaiting External Reconciliation
Invoice Reconciliation for Documents in Approved Status

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98 PUBLIC Invoice and Invoice Reconciliation Status Flow
Advance Payment Status Flow

The status of an advance payment document is updated at different stages of its workflow.

Action Status

Create an advance payment Composing

Submit the advance payment Composing to Submitted

Approve the advance payment Submitted to Approved

Export the advance payments to the ERP system Approved

Errors received from the ERP system Approved to Composing

Cancel an advance payment in the Approved state. Approved to Canceling

Receive the acknowledgment for an advance payment from the Approved to Paying
ERP system

Receive the remittance information from ERP system Paying to Paid

Force pay an approved advance payment if an acknowledg- Approved to Paid

ment is not received from ERP system

One of the following actions apply: Paying to Paid

• Receive the remittance information for all line items on an

advance payment from the ERP system.
• Force pay an advance payment in the Paying state if re-
mittance information is not received from the ERP system.

Cancel an advance payment in Approved state Approved to Canceling

One of the following actions apply: Canceling to Canceled

• Receive the acknowledgment for a cancelled advance pay-

ment from the ERP system.
• Force cancel an advance payment in the Cancelling state
an acknowledgment for the cancelled advance payment is
not received.

Force cancel an advance payment in Canceling state if ac- Canceling to Canceled

knowledgment is not received for the cancelled advance pay-
ment

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Advance Payment Status Flow PUBLIC 99
Action Status

Remittance information for an advance payment has been re- Canceling > Paying > Paid
ceived from the ERP system, while the advance payment is
marked for cancellation.

Cancel invoice while the IR document is in Paid status. Paid > Paying

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100 PUBLIC Advance Payment Status Flow
SAP Ariba-Controlled Parameters for Creating
and Managing Invoices

Some of the functionality for supplier contacts is controlled by configuration options that SAP Ariba Support sets
for you. These parameters apply to SAP Ariba Buying and Invoicing and SAP Ariba Invoice Management.

Application.Invoicing.AdaptAmountFromANForAmountBasedReceivingWithAdvancedPricing (set by SAP

Ariba Support)
Ensures that the item amount is calculated correctly for items with advanced pricing and
amount-based receiving on invoices from SAP Business Network. This parameter affects
items with both of the following:

• Advanced pricing details (also known as PBQ)

• Amount-based receiving

For example, a quantity-based service item might have advanced pricing to show how the
price is calculated, and amount-based receiving because the item is provided as a service.
When set to Yes, this parameter adapts the item amount calculation to compensate for the
fact that SAP Business Network always sends quantity = 1 for items with amount-based
receiving.
Application.Invoicing.AdjustSplitAllocationOnQtyChange (set by SAP Ariba Support)
For invoice line items split by quantity and amount, this parameter determines whether split
allocations adjust proportionately to reflect quantity changes. This parameter is for invoices
entered by the buyer when lines are split by quantity and amount. If this parameter is set to
Yes, when a user changes the quantity of a line item, the split quantities are automatically
adjusted in a way that maintains the original split proportions. For example, suppose an
item quantity of 10 is split 3 ways into 4, 2, and 4. If the item quantity changes to 5, and this
parameter is set to Yes, the splits become 2, 1, and 2. If this parameter is set to No, when a
user changes the quantity of a line item, the split quantities doesn't change. The user has to
update the allocation manually.
Application.Invoicing.IgnoreZeroLineShipping (set by SAP Ariba Support)
This parameter specifies whether zero amount line level shipping lines are allowed on cXML
invoices. When this parameter is set to Yes, zero amount shipping lines are not created at
the line level. When set to No, zero shipping lines are retained. Ariba Support can also set
the parameter to No to retain zero amount shipping lines in IRs. The default value for this
parameter is Yes.
Application.Contract.MasterAgreement.AllowCollaborativeInvoicing (set by SAP Ariba
Support)
This parameter specifies whether suppliers on SAP Business Network can punch in to
your invoicing solution to create invoices against no-release-order contracts directly in your
invoicing solution. The default setting is No. When this parameter is set to Yes, contract
agents can override the value on the contract request (allow invoicing against contract).
This field is only displayed for contracts where Release Required is set to No.
Application.Invoicing.AllowReusingInvoiceNumberAcrossCalendarYear (set by SAP Ariba Support)

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SAP Ariba-Controlled Parameters for Creating and Managing Invoices PUBLIC 101
 Specifies whether supplier invoice numbers from the previous year can
be reused in a new year. The yearly end date is determined by
the supplier location's fiscal year. This parameter applies to invoices
that have one of the statuses listed in the self-service parameter
Application.Invoice.AllowReusingInvoiceNumber. This parameter is ignored if
the parameter Application.Base.AribaNetworkOrganizationSyncOption (set by
SAP Ariba) is set to NoSync or if the fiscal year end date is missing for the supplier on SAP
Business Network.
Application.Invoicing.UseSupplierLocationFromOrderOnInvoice (set by SAP Ariba Support)
Specifies whether PO-based invoices always use the supplier location of the matching
order. If this parameter is set to Yes, the supplier location on the matching order overrides
any user edits to supplier location on the invoice. If this parameter is set to No, users' edits
to the supplier location on the invoice are retained.
Application.Invoicing.AllowSupplierToCreateCompliantContractInvoice (set by SAP Ariba Support)
This parameter specifies whether or not suppliers can create a contract invoice in their SAP
Business Network account and punch into the invoicing solution from SAP Ariba to retrieve
the contract and add items. The invoice is validated according to SAP Business Network
country/region-based rules and buyer-specified contract pricing. The default setting is Yes
for sites enabled on or after Release 12s2.
Application.Invoicing.AllowLegalEntityCodeAtSplitLevel (set by SAP Ariba Support)
This parameter specifies whether or not line-level accounting distributions on invoices
include the Company Code field in SAP-integrated sites. If enabled, the Company Code
field does not show at the header level of the invoice; it shows at the line level instead. The
default setting is No.
Application.Invoicing.AutoInvoiceLineCreation
Enables the automatic creation of invoice line items from the PO details or receipt
information in ICS invoices. Setting this parameter to Yes allows customers to submit
electronic invoices that do not contain any line item information to SAP Business Network.
By default, this parameter is set to No.
Application.Invoicing.Enabled (set by SAP Ariba Support)
Determines whether the site includes functionality for viewing and reconciling invoices.
When set to Yes, authorized users can view and reconcile invoices. When set to No, users
cannot view or reconcile invoices.

 Note

This parameter does not control the ability to create or edit invoices. That is controlled
by group membership.

Application.Invoicing.EnableTaxesOnShippingAndHandlingItems (set by SAP Ariba Support)

This parameter specifies whether or not users can add shipping and special handling lines
on invoices and specify taxes for those lines. When this parameter is set to Yes, the Add
Shipping Item and Add Special Handling Item buttons appear on the Add Items page
when users are creating invoices. To add taxes to a shipping or special handling line, the
user selects Add Taxes at Line Level, which causes the Add Taxes button to appear next to
each line. The default setting is No.

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  Restriction

Taxes cannot be added to charges at header-level.

Application.Invoicing.CalculateTaxesOnNetAmount (set by SAP Ariba Support)

Specifies whether line-level discounts are taken into account when percentage taxes
are calculated on invoices. This parameter does not apply to invoice reconciliation (IR)
documents.

• When set to Yes, percentage taxes are calculated on the invoice net amount (the invoice
base amount minus the discount). The taxable amount includes the discount.
• When set to No, percentage taxes are calculated on the invoice base amount.

Application.Invoicing.UseTLCTaxEngine (set by SAP Ariba Support)

This parameter is used to specify if you want to use the enhanced tax computation engine
or a third-party tax calculation engine for taxes applied on invoices.

 Note

If Application.Invoicing.CopyTaxCodesFromInvoiceToIR is set to Yes, the tax

code on an invoice tax line is copied to the corresponding IR tax line regardless of
whether the site is using the enhanced tax computation engine.

Application.Procure.EnableAccountingForWithholdingTaxInInvoiceAndIR (set by SAP Ariba Support)

This parameter specifies whether users can manage accounting information for
withholding taxes on invoices and invoice reconciliation documents. If set to Yes, users
can perform tasks, such as configure accounting splits for withholding taxes and mass edit
tax accounting information for withholding taxes.

The default value of this parameter is No.

 Note

To manage withholding taxes on invoices and invoice reconciliation documents, the

Application.Invoicing.UseTLCTaxEngine parameter must be enabled.

Application.Invoicing.SkipAmount (set by SAP Ariba Support)

This parameter specifies a threshold amount below which the system skips validation of
an invoice. The value represents an amount in the default currency. This parameter is used
by the invoice validation rules in the default configuration. If a site's configuration defines
custom validation rules, they might or might not use this parameter. The default value is 5.

 Note

By default, validation of credit memos is never skipped. If an invoice has a negative

amount (and therefore is a credit memo), it always raises an invoice exception. If the
parameter Application.Invoicing.SkipLineCreditMemoExceptions is set to
Yes, only header-level credit memos raise exceptions.

Application.Settlement.PaymentRequestSendMethodOption (set by SAP Ariba Support)

This parameter specifies a method for sending payment requests, which in turn defines
whether or not the status of invoice reconciliation and payment request documents in your

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 invoicing solution depends on the success or failure of invoices in integrated ERP systems.
The following values are valid settings for this parameter:

• Default: the default value for the parameter. In this case, the status of the invoice
reconciliation and payment request in your invoicing solution does not change based on
the success or failure of the invoice in the ERP system. You must use this setting if you
export payment requests using SAP Integration Suite, managed gateway (formerly SAP
Ariba Cloud Integration Gateway).
• Asynchronous Push: the recommended setting for sites that use file-based
integration between SAP Ariba Buying and Invoicing and the ERP system. In this case,
the status of the invoice reconciliation and payment request in SAP Ariba Buying and
Invoicing changes based on the success or failure of the invoice in the ERP system. This
value is not applicable to SAP Ariba Invoice Management.
• DirectPush: the recommended setting for sites that use web services-based
integration between SAP Ariba Buying and Invoicing and the ERP system. In this case,
the status of the invoice reconciliation and payment request in SAP Ariba Buying and
Invoicing changes based on the success or failure of the invoice in the ERP system. This
value is not applicable to SAP Ariba Invoice Management.

Application.Invoicing.InvoiceTypesThatOverridePaymentTerms (set by SAP Ariba Support)

Specifies the types of cXML invoices for which the payment terms are always defaulted
from the invoice source (the PO or contract, depending on the type of invoice). The
payment terms passed in the cXML are ignored for such invoices. Valid values for this
parameter are POInvoice and ContractInvoice. The default value is empty list.

This parameter enables buyers to enforce that the payment term they specified for a PO or
contract is the payment term that ends up on invoices related to that PO or contract. If the
supplier specifies a different payment term on the invoice, it's overridden by the payment
term the buyer specified for the PO or contract. When this parameter isn't set, if an invoice
from the supplier contains payment terms that differ from those in the PO or contract, an
exception is raised.
Application.Invoicing.MaxInvoiceAttachmentPagesToPNG (set by SAP Ariba Support)
This parameter specifies the maximum number of pages of an attachment file on the
Invoice Entry page that can be converted to PNG format when users choose to view the
attachment. By default, this value is set to 15.
Application.Invoicing.AttachmentsInApprovalNotifications (set by SAP Ariba Support)

Determines whether users can receive attachments in email approval notifications for
invoice reconciliation documents, cancel invoice requests, and invoices. Setting this
parameter to Yes adds the checkbox Exclude attachments from approval notifications
to invoice-related email notification preferences. By default, attachments are included. If
attachments total more than 10MB, no attachments are included.

Setting this parameter to Yes may affect email approval performance.

This parameter is applicable when the parameter

Application.Base.EmailApprovalEnabled is set to Yes.
Application.Invoicing.EnforcePurchaseOrgSupplierValidation (set by SAP Ariba Support)
This parameter specifies whether or not the supplier field in invoices and invoice
reconciliations is validated against the list of suppliers associated with the invoice
purchasing organization. This parameter is only applicable for sites integrated with SAP.

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104 PUBLIC SAP Ariba-Controlled Parameters for Creating and Managing Invoices
 When this parameter is set to Yes, the search for suppliers when creating an invoice or
invoice reconciliation is filtered, so that the list includes only suppliers associated with the
same invoice purchasing organization as the user viewing the list.
Application.Invoicing.AllowOneTimeVendorInvoices (set by SAP Ariba Support)
Enables the one-time vendor invoicing feature, which allows buyers to enter invoices for
infrequent or one-time vendors that don't have a supplier record in the SAP Ariba solution.
Buyers can also receive one-time vendor invoices via SAP Ariba invoice conversion services
(ICS). When this parameter is set to Yes:

• Customers can configure the one-time vendor invoicing feature, with the help of SAP
Ariba.
• The invoice entry page for non-PO invoices includes fields for creating one-time vendor
invoices.

Application.Invoicing.RespectEditabilityForCopyAccounting (set by SAP Ariba Support)

Determines whether copying line item accounting depends on field editability conditions
such as group membership. If set to Yes, when the user clicks Copy Accounting, the
system checks the editability of the split accounting fields and only copies the values if the
editability conditions are met.
Application.Invoicing.SupportSupplierBankInfoOnInvoices (set by SAP Ariba Support)
Determines whether the SAP Ariba solution processes the supplier bank details in cXML
invoices (in the payment method extrinsic) and whether the supplier bank details in cXML
invoices from SAP Business Network are used on invoice reconciliation (IR) documents.
Setting this parameter to Yes helps the SAP Ariba solution find the correct remittance
location.
Suppliers might send updated bank details in cXML invoices over SAP Business Network.
This parameter applies to cXML invoices transmitted between SAP Business Network
and the SAP Ariba invoicing solution. It's most likely to pertain to SAP Ariba Invoice
Management sites and merged sites that include both SAP Ariba Invoice Management and
SAP Ariba Buying and Invoicing.
If this parameter is set to No, the SAP Ariba solution doesn't process updated bank
details in invoices sent by suppliers. Supplier-specified bank details are not included in
the reconciled invoices sent to SAP Business Network for payment processing.
If this parameter is set to Yes, the following bank details can be received and processed
during the invoice reconciliation process and are included in the reconciled invoices sent to
SAP Business Network:

• Bank ID Type
• Bank ID
• Bank Account ID
• Bank Account Type
• IBAN
• Branch Name
• Account Name

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Self-Service Site Configuration Parameters for
Creating and Managing Invoices

Allow editing of taxes and charges on invoices [page 106]

Generate invoices for evaluated receipt settlement [page 107]

Enable evaluated receipt settlement and automatic invoicing for service items [page 108]

Apply account determination rules to ERS invoices [page 108]

Generate short invoice numbers for ERS invoices [page 109]

Empty Reference Date field for contract punch-in items [page 110]

Support price-adjustment credit and debit memos [page 110]

Get latest catalog prices for contract-based invoices [page 111]

Allow split accounting [page 111]

Allow export and import of accounting distribution [page 112]

Copy tax codes from invoice to IR document [page 113]

Commodity code for non-catalog invoice line items [page 113]

Allow invoice number reuse [page 114]

Send attachments associated with documents to ERP system [page 115]

Default Requester for Invoices from Invoice API [page 115]

Allow editing of taxes and charges on invoices

Specifies whether users can add, edit, and delete taxes and charges on invoices from SAP Business Network.
Setting this parameter to No prevents editing taxes and charges on all SAP Business Network invoices except Italy
SDI invoices and invoices sent by an invoice conversion service (ICS).

ID Application.Invoicing.AllowEditingTaxesAndChargesOnAribaNetworkInvoices

Name Allow editing of taxes and charges on invoices

Default value No

This parameter provides a way to handle invoices from suppliers who can't provide accurate tax information.
For example, some buying organizations enter withholding taxes manually on invoices from certain geographical
locations.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

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Related Information

Intelligent Configuration Manager administration

Parameter Management in Intelligent Configuration Manager

Generate invoices for evaluated receipt settlement

Determines whether invoices are automatically generated from approved receipts for suppliers that are configured
for evaluated receipt settlement (ERS).

ID Application.Procure.EnableERS

Name Generate invoices for evaluated receipt settlement

Default value No

The evaluated receipt settlement (ERS) feature enables buyers to settle goods receipts without receiving invoices
from suppliers. This helps to reduce invoice variances and close purchasing transactions more quickly.

• If this parameter is set to Yes, invoices are automatically created when receipts are fully approved (SAP Ariba
Buying and Invoicing) or imported from the external system (SAP Ariba Invoice Management).
Also, the ERSAllowed flag becomes available in the SupplierLocation.csv (legacy supplier import) and
SupplierLocationConsolidated.csv import files to allow buyers to configure suppliers for ERS.
• If this parameter is set to No, invoices must be created manually from approved receipts.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Parameters

To enable ERS for service items, in addition to the Application.Procure.EnableERS parameter, set the
following parameter to Yes:

Enable evaluated receipt settlement and automatic invoicing for service items,
Application.Procure.EnableERSForServiceItems

If your site uses approvable details determination rules, see also the parameter Apply account determination rules
to ERS invoices [page 108], Application.Invoicing.ApplyApprovableDeterminationRulesToERS.

Contracts That Consist a Mix of ERS and Non-ERS Items

Manual invoicing is supported on contracts that have a mix of ERS and non-ERS items. To have your site configured
to support manual invoicing against contracts with a mix of ERS and non-ERS items, have your Designated Support
Contact (DSC) file a Service Request (SR). SAP Ariba Support will follow up to complete the request by turning on
feature SINV-8138.

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Related Information

Enable evaluated receipt settlement and automatic invoicing for service items [page 108]
Intelligent Configuration Manager Administration
Parameter Management in Intelligent Configuration Manager

Enable evaluated receipt settlement and automatic

invoicing for service items
Determines whether invoices are generated automatically from approved service sheets for suppliers
that are configured for Evaluated Receipt Settlement (ERS). This parameter is effective only if the
Application.Procure.EnableERS parameter is set to Yes.

ID Application.Procure.EnableERSForServiceItems

Name Enable evaluated receipt settlement and automatic invoicing for service items

Default value No

If both this parameter and the Application.Procure.EnableERS parameter is set to Yes, invoices are created
automatically when service sheets are fully approved (SAP Ariba Buying and Invoicing) or imported from external
systems (SAP Ariba Invoice Management). In addition, users can create correction service sheets with reference to
invoiced service sheets for ERS items or a mix of ERS and non-ERS items.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Generate invoices for evaluated receipt settlement [page 107]

Intelligent Configuration Manager administration
Parameter Management in Intelligent Configuration Manager

Apply account determination rules to ERS invoices

On sites that use approvable details determination rules (advanced defaulting based on lookup tables, line-item
fields, and expressions), specifies whether the rules apply to invoices generated automatically through the
evaluated receipt settlement (ERS) feature.

ID Application.Invoicing.ApplyApprovableDeterminationRulesToERS

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Name Apply account determination rules to ERS invoices

Default value No

This parameter applies to sites that use both of the following features:

• Evaluated receipt settlement

• Advanced defaulting based on lookup tables, line-item fields, and expressions. This advanced defaulting is a
way to determine the accounting values for each accounting field in an approvable.

Possible values for this parameter are Yes and No.

• When set to Yes, the account defaulting set by your approvable details determination rules rules is applied to
ERS invoices.
• When set to No, the rules do not apply to ERS invoices.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Generate invoices for evaluated receipt settlement [page 107]

Enable SAP ERP evaluated receipt settlement (ERS)
Enable evaluated receipt settlement and automatic invoicing for service items [page 108]
Intelligent Configuration Manager Administration
Advanced Defaulting Based on Lookup Tables, Line-Item Fields, and Expressions
Parameter Management in Intelligent Configuration Manager

Generate short invoice numbers for ERS invoices

Specifies how to generate invoice numbers for ERS invoices, which affects their length. By default, invoice numbers
for scheduled fee invoices are created by combining the unique IDs of the receipt and the invoice, such as:
RCXXXXINVYYYY. If this parameter is set to Yes, the invoice numbers are based on receipt unique ID only, such as:
RCXXXX.

ID Application.Invoicing.GenerateERSInvoiceNumberByReceiptIDOnly

Name Generate short invoice numbers for ERS invoices

Default value No

If your ERP system requires short invoice numbers, you can set this parameter to Yes.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

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Related Information

Generate short invoice numbers for ERS fee invoices

Intelligent Configuration Manager administration
Parameter Management in Intelligent Configuration Manager

Empty Reference Date field for contract punch-in

items
When suppliers punch in to the customer catalog to add line items to an invoice, determines whether the
Reference Date field is empty by default. If set to No, the Reference Date field is set to the current date.

ID Application.Invoicing.DefaultEmptyReferenceDateForContractPunchInLineIte
ms

Name Empty Reference Date field for contract punch-in items

Default value No

When set to , suppliers must set the reference date manually.

We recommend customizing your SAP Business Network account to validate reference dates before invoice
submission.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Intelligent Configuration Manager administration

Parameter Management in Intelligent Configuration Manager

Support price-adjustment credit and debit memos

Specifies whether your site accepts and reconciles price-adjustment line-item credit memos and line-item debit
memos from SAP Business Network and whether buyers can enter line-item price-adjustment invoices. When set
to Yes, users entering line-item credit memos choose between a price adjustment and a quantity adjustment.

ID Application.Invoicing.EnableLineItemPriceAdjustmentInvoices

Name Support price-adjustment credit and debit memos

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Default value No

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Prevent acceptance of specific invoice exceptions [page 125]

Intelligent Configuration Manager administration
Price-Adjustment Debits and Credits [page 44]
Parameter Management in Intelligent Configuration Manager

Get latest catalog prices for contract-based invoices

Determines whether contract-based invoices get pricing for items from the current customer catalog or from the
contract. If set to Yes, when a contract-based invoice is created, the invoice gets the latest item prices from the
customer catalog. If set to No, the invoice uses the prices set in the contract.

ID Application.Invoicing.RepriceItemsForContractBasedInvoices

Name Get latest catalog prices for contract-based invoices

Default value No

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Intelligent Configuration Manager administration

Parameter Management in Intelligent Configuration Manager

Allow split accounting

Enables or disables split accounting on line item level. If set to Yes, users can create accounting distributions at the
line level in requisitions, service sheets, invoices, and invoice reconciliation documents.

ID Application.Approvable.AllowSplitAccounting

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Name Allow split accounting

Default value Yes

This parameter doesn't apply to non-PO invoices created in guided buying.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Intelligent Configuration Manager administration

Parameter Management in Intelligent Configuration Manager

Allow export and import of accounting distribution

Determines whether export and import of accounting distributions is allowed on requisitions, service sheets,
invoices, and invoice reconciliations.

ID Application.Procure.AllowAccountingExportAndImport

Name Allow export and import of accounting distribution

Default value No

Possible values for this parameter are Yes and No.

• If set to Yes, users authorized to edit a document can export the accounting distributions from the document
to an Excel file to edit or add accounting distributions offline, and then import the edited file to update the
accounting information on the document.
• If set to No, users cannot import or export accounting distributions on documents.

This parameter is applicable for sites enabled for split accounting, which is controlled by the parameter Allow split
accounting, Application.Approvable.AllowSplitAccounting.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Intelligent Configuration Manager administration

Parameter Management in Intelligent Configuration Manager

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Copy tax codes from invoice to IR document
Determines whether the tax codes for tax lines on invoice reconciliation (IR) documents originate from the
corresponding tax line on the invoice.

ID Application.Invoicing.CopyTaxCodesFromInvoiceToIR

Name Copy tax codes from invoice to IR document

Default value No

Possible values for this parameter are Yes and No.

• If set to Yes, the tax code on an invoice tax line is copied to the corresponding IR tax line. If there's no valid tax
code that matches the invoice line, tax calculation fails on the IR.
If an invoice tax line has no tax code specified, the tax code for the IR is determined by a tax code lookup.
• If set to No (the default), the tax code on the IR might be different from that on the invoice. The tax code is
calculated using a lookup. The lookup used depends on which tax computation engine your site is using, as
determined by Application.Invoicing.UseTLCTaxEngine.

 Note

If the tax code on an IR is different from what’s expected, it might be because the site’s tax configuration needs
correcting. Address any tax configuration issues before you consider setting this parameter to Yes.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Intelligent Configuration Manager Administration

Parameter Management in Intelligent Configuration Manager

Commodity code for non-catalog invoice line items

Specifies the default commodity code value for non-catalog line items on invoices. Accounting values associated
with the commodity code are also set for the non-catalog line items. The commodity code must be a valid value for
the system commodity code domain set for your site.

ID Application.Invoicing.InvoiceCreationDefaultLineItemCommodityCode

Name Commodity code for non-catalog invoice line items

Default value Not applicable

This parameter applies to any invoice sent from SAP Business Network or created manually that includes non-
catalog line items.

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If the value of this parameter is blank, users must enter a valid commodity code for non-catalog line items on
invoices.

When a non-PO, PO-based, or contract-based invoice line uses the default commodity code defined by this
parameter, the header-level line accounting value gets its default value from the commodity export map entry
(CEME) settings, unless your site is configured to prevent that behavior. This behavior is controlled by feature
toggle CDN-13865, Prevent Header Level Charges Accounting Defaulting From CEME.

The system commodity code domain for your site is set by the parameter
Application.ClassificationCode.SystemCommodityCodeDomainName, which is set by SAP Ariba.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Intelligent Configuration Manager administration

Parameter Management in Intelligent Configuration Manager

Allow invoice number reuse

Determines whether users can reuse invoice numbers for failed, canceled, denied, and rejected invoices. Specify
the statuses for which you allow invoice number reuse. Valid values are: Failed, Canceled, Denied, Rejected.

ID Application.Invoicing.AllowReusingInvoiceNumber

Name Allow invoice number reuse

Default value An empty list

This parameter pertains to the Supplier Invoice Number field on invoices received from the supplier through SAP
Business Network.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

A related parameter allows the reuse of invoice numbers from the previous year:

Application.Invoicing.AllowReusingInvoiceNumberAcrossCalendarYear (set by SAP Ariba Support)

Specifies whether supplier invoice numbers from the previous year can
be reused in a new year. The yearly end date is determined by
the supplier location's fiscal year. This parameter applies to invoices
that have one of the statuses listed in the self-service parameter
Application.Invoice.AllowReusingInvoiceNumber. This parameter is ignored if
the parameter Application.Base.AribaNetworkOrganizationSyncOption (set by
SAP Ariba) is set to NoSync or if the fiscal year end date is missing for the supplier on SAP
Business Network.

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Related Information

Case-insensitive matching for payment updates

Intelligent Configuration Manager Administration
Parameter Management in Intelligent Configuration Manager

Send attachments associated with documents to ERP

system
Determines whether attachments associated with documents are sent to the ERP system.

ID Application.Procure.AllowAttachmentToERP

Name Send attachments associated with documents to ERP system

Default value No

If set to Yes, when documents, such as service sheets or invoices are sent to the external ERP system for
reconciliation action, file attachments associated with those documents are also sent to the external system.

If set to No, file attachments are not included when the associated documents are sent to the extenal system.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Intelligent Configuration Manager administration

Parameter Management in Intelligent Configuration Manager

Default Requester for Invoices from Invoice API

Specifies a default requester for invoices created through an invoice management API. Enter a valid username. The
requester is used in determining the default purchasing unit or business unit on the invoice. If you don't set this
parameter, the requester value is AribaSystem.

ID Application.Invoicing.InvoiceAPI.DefaultRequesterUniqueName

Name Default requester for invoices from invoice API

Default value Not applicable

This parameter is applicable to invoices from SAP Central Invoice Management.

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The requester of an invoice is the user specified in the On Behalf Of field. Configuring a default requester can
help with auto-filling accounting information on the invoice. Users with the appropriate permissions can change the
requester as needed.

 Note

The API used to create invoices based on invoices from SAP Central Invoice Management is an internal SAP
Ariba API called the Invoice Management API.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Intelligent Configuration Manager Administration

Parameter Management in Intelligent Configuration Manager
Invoices from SAP Central Invoice Management [page 61]

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SAP Ariba-Controlled Parameters for
Reconciling Invoices

Some of the functionality for supplier contacts is controlled by configuration options that SAP Ariba Support sets
for you. These parameters apply to SAP Ariba Buying and Invoicing and SAP Ariba Invoice Management.
Application.Invoicing.RequireApprovalOnSequentialNodeWithSameApprover (set by SAP Ariba Support)
On invoice reconciliation (IR) documents, determines the behavior of the approval flow
when a user who's in two subsequent approval group nodes edits the IR and approves
it on behalf of the first group. This parameter is applicable when the edit rule Edit With
Resubmit is enabled. For example, suppose the approval flow includes Group A and
Group B in sequential approval nodes, and user 1 belongs to both groups. When User 1
approves on behalf of Group A, the approval node for Group B either requires approval or is
automatically approved, depending on how this parameter is set.
Application.Invoicing.InvoiceEntryAllowEditLineDescription (set by SAP Ariba Support)
This parameter controls whether or not users are allowed to edit item descriptions on
PO-based invoices. The default setting is No.
Application.Invoicing.AllowLegalEntityCodeAtSplitLevel (set by SAP Ariba Support)
This parameter specifies whether or not line-level accounting distributions on invoices
include the Company Code field in SAP-integrated sites. If enabled, the Company Code
field does not show at the header level of the invoice; it shows at the line level instead. The
default setting is No.
Application.Invoicing.AutoAcceptAmount (set by SAP Ariba Support)
This parameter specifies a threshold for auto-accepting invoice reconciliation documents
based on the total amount of the IR. If the IR amount is less than or equal to the value
specified in this parameter, the reconciliation engine auto-accepts the IR. The value for this
parameter is an amount in the default currency. The default value is 10.
Application.Invoicing.AutoAcceptPercentage (set by SAP Ariba Support)
This parameter specifies a threshold for auto-accepting invoice reconciliation documents
based on the total amount of the IR as a percentage of the total amount left to invoice on
the associated purchase order. The value of this parameter is a decimal value, such as .10.
The default value is .15, meaning that the reconciliation engine auto-accepts an IR if its total
is 15% or less of the amount left to invoice on the purchase order amount.
Application.Invoicing.SkipAmount (set by SAP Ariba Support)
This parameter specifies a threshold amount below which the system skips validation of
an invoice. The value represents an amount in the default currency. This parameter is used
by the invoice validation rules in the default configuration. If a site's configuration defines
custom validation rules, they might or might not use this parameter. The default value is 5.

 Note

By default, validation of credit memos is never skipped. If an invoice has a negative

amount (and therefore is a credit memo), it always raises an invoice exception. If the

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 parameter Application.Invoicing.SkipLineCreditMemoExceptions is set to
Yes, only header-level credit memos raise exceptions.

Application.Invoicing.SkipLineCreditMemoExceptions (set by SAP Ariba Support)

This legacy parameter specifies whether line-level credit memos raise exceptions during
invoice reconciliation. Administrators can now configure this functionality themselves in the
Invoice Exception Types UI. To fully enable customer configuration:

• Set Application.Invoicing.LineCreditMemoExceptions to No.

• Add all categories to
Application.Invoicing.LineCreditMemoExceptionLineCategories.
• Configure the desired behavior in the Invoice Exception Types UI in Ariba
Administrator.

Application.Invoicing.LineCreditMemoExceptionLineCategories (set by SAP Ariba Support)

This legacy parameter specifies which categories of line items are
validated for exceptions in line-item credit memos. It's applicable if legacy
parameter Application.Invoicing.SkipLineCreditMemoExceptions is set to No.
Administrators can now configure this functionality themselves in the Invoice Exception
Types UI. To fully enable customer configuration:

• Set Application.Invoicing.SkipLineCreditMemoExceptions to No.

• Add all categories to
Application.Invoicing.LineCreditMemoExceptionLineCategories. Valid
values (not case sensitive): RegularLine, HandlingCharge, SpecialCharge,
Discount, FreightCharge, TaxCharge, WHTTax
• Configure the desired behavior in the Invoice Exception Types UI in Ariba
Administrator.

Application.Invoicing.UseTLCTaxEngine (set by SAP Ariba Support)

This parameter is used to specify if you want to use the enhanced tax computation engine
or a third-party tax calculation engine for taxes applied on invoices.

 Note

If Application.Invoicing.CopyTaxCodesFromInvoiceToIR is set to Yes, the tax

code on an invoice tax line is copied to the corresponding IR tax line regardless of
whether the site is using the enhanced tax computation engine.

Application.Invoicing.RejectRequiresNoMoreApprovals (set by SAP Ariba Support)

This parameter specifies whether or not invoice reconciliation document approvers are
deactivated after one approver rejects the IR. When this parameter is set to Yes, IR
documents are finally rejected when any approver used the Reject button. When this
parameter is set to No, rejected IRs must be approved (in other words, an approver
must approver the rejection) before it is finally rejected, and the Cancel Reject button
is available. The default value is Yes.
Application.Invoicing.DisableRereconciliationOfRelatedIRsForContract (set by SAP Ariba Support)
This parameter specifies whether or not related invoice reconciliations are automatically
re-reconciled when contract accumulators are updated. When this parameter is set to No,
updates to accumulators in contracts trigger re-reconciliations of related IRs based on
those updated. The default value is No.

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Application.Invoicing.DisableRereconciliationOfRelatedIRsForOrder (set by SAP Ariba Support)
This parameter specifies whether or not related invoice reconciliations are automatically
re-reconciled when purchase order accumulators are updated. When this parameter is set
to No, updates to accumulators in puchase orders trigger re-reconciliations of related IRs
based on those updates. The default value is No.
Application.Invoicing.EnableTaxesOnShippingAndHandlingItems (set by SAP Ariba Support)
This parameter specifies whether or not users can add shipping and special handling lines
on invoices and specify taxes for those lines. When this parameter is set to Yes, the Add
Shipping Item and Add Special Handling Item buttons appear on the Add Items page
when users are creating invoices. To add taxes to a shipping or special handling line, the
user selects Add Taxes at Line Level, which causes the Add Taxes button to appear next to
each line. The default setting is No.

 Restriction

Taxes cannot be added to charges at header-level.

Application.Procure.EnableAccountingForWithholdingTaxInInvoiceAndIR (set by SAP Ariba Support)

This parameter specifies whether users can manage accounting information for
withholding taxes on invoices and invoice reconciliation documents. If set to Yes, users
can perform tasks, such as configure accounting splits for withholding taxes and mass edit
tax accounting information for withholding taxes.

The default value of this parameter is No.

 Note

To manage withholding taxes on invoices and invoice reconciliation documents, the

Application.Invoicing.UseTLCTaxEngine parameter must be enabled.

Application.Invoicing.EnableEnhancedManualMatch (set by SAP Ariba Support)

This parameter specifies whether the enhanced user interface for manual matching of
invoice lines with order or contract lines is enabled.

The default value of this parameter is Yes.

Application.Invoicing.MaxInvoiceAttachmentPagesToPNG (set by SAP Ariba Support)
This parameter specifies the maximum number of pages of an attachment file on the
Invoice Entry page that can be converted to PNG format when users choose to view the
attachment. By default, this value is set to 15.
Application.Budget.EnableFundsManagement (set by SAP Ariba Support)
(Applicable for sites integrated with SAP ERP) The
Application.Budget.EnableFundsManagement parameter specifies whether the Get
Funds Management Details option is visible on requisitions and invoice reconciliation
documents.

When set to Yes, the Get Funds Management Details option is available on requisitions
and invoice reconciliation documents. When users select this option, Funds Management
account assignment fields are populated with relevant accounting information fetched from
the external ERP system.

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 When set to No, the Get Funds Management Details option is not visible on requisitions
and invoice reconciliation documents.

The default value for this parameter is No.

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120 PUBLIC SAP Ariba-Controlled Parameters for Reconciling Invoices
Self-Service Site Configuration Parameters for
Reconciling Invoices

Include accounting info for charge lines in IR cXML [page 121]

Invoice exception types for accrued tax payments [page 122]

Generate default withholding tax at the header level [page 123]

Always display Reject button for IRs in Approving [page 123]

Require reason codes for invoice rejection [page 124]

Prevent dispute of invoices [page 124]

Prevent acceptance of specific invoice exceptions [page 125]

Require comments to supplier for invoice rejection [page 126]

Require invoice reconciliation in the ERP system [page 127]

Remit To on invoice reconciliations is from invoice [page 127]

Enable goods receipt-based invoice verification [page 129]

Match receipts to invoices without ship notices [page 129]

Allow edits to matched quantity in receipt matching [page 130]

Days to delay creating an IR document [page 131]

Third-party tax calculation for buying and invoicing [page 132]

Enhanced third-party tax calculation for invoicing [page 132]

Enhanced warnings for force actions on invoices and payments [page 133]

Use receipt unit price to validate invoice unit price [page 133]

Include accounting info for charge lines in IR cXML

Determines whether accounting information is included in tax, shipping, special handling, and discount lines in
the exported cXML for invoice reconciliation (IR) documents. When set to Yes, accounting information for invoice
charge lines is included cXML invoice exports from sites that send IR documents to SAP Business Network.

ID Application.Invoicing.AccountingOnChargeLinesInIRCXML

Name Include accounting info for charge lines in IR cXML

Default value No

This parameter is applicable for sites that route invoice reconciliation (IR) documents to SAP Business Network.
That functionality is controlled by the parameter Application.Invoicing.SendIRToAN, which SAP Ariba sets
for you. To change the setting of Application.Invoicing.SendIRToAN, have your Designated Support Contact
(DSC) submit a Service Request (SR).

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A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Intelligent Configuration Manager administration

Parameter Management in Intelligent Configuration Manager

Invoice exception types for accrued tax payments

Lists unique names of the invoice exception types for which accrued tax payments are tracked in payment
requests. Applicable on sites that process payments for tax accrual, set by the parameter Process tax accrual
payments, Application.Invoicing.ProcessPaymentsForTaxAccrual.

ID Application.Invoicing.TaxAccrualExceptions

Name Invoice exception types for accrued tax payments

Default value UnderTaxVariance,AccrualTaxVariance

The parameter value is a comma-separated list of strings, each of which represents the unique internal identifier of
an invoice exception type in the site. Enter the unique name of the invoice exception types that trigger tracking of
accrual taxes.

To get the unique internal identifiers of the preloaded invoice exception types, either export the invoice exception
types from your site or see the Invoicing Default Data worksheet in the Reference Data Workbooks.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Process tax accrual payments [page 138]

Intelligent Configuration Manager administration
Parameter Management in Intelligent Configuration Manager

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122 PUBLIC Self-Service Site Configuration Parameters for Reconciling Invoices
Generate default withholding tax at the header level
By default, computed withholding taxes are added at the header level of invoice reconciliation documents. If this
parameter is set to No, withholding taxes are added at the line level instead. This parameter is applicable if the
parameter Application.Invoicing.UseTLCTaxEngine is set to Yes.

ID Application.Invoicing.DefaultWithholdingTaxOnIRHeader

Name Generate default withholding tax at the header level

Default value No

The parameter Application.Invoicing.UseTLCTaxEngine, which SAP Ariba sets for you, specifies whether
to use the enhanced tax computation engine or a third-party tax calculation engine for taxes applied on invoices. To
change the setting, have your Designated Support Contact (DSC) submit a Service Request (SR).

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Intelligent Configuration Manager administration

Parameter Management in Intelligent Configuration Manager

Always display Reject button for IRs in Approving

Specifies whether the Reject button on invoice reconciliation documents is available to all users or only to invoice
exception handlers and members of the Invoice Manager group. This parameter affects the Exceptions tab of
invoice reconciliation documents in Approving status.

ID Application.Invoicing.AlwaysDisplayRejectButtonForIRsInApproving

Name Always display Reject button for IRs in Approving

Default value No

Possible values for this parameter are Yes and No.

• When set to Yes, the Reject button on invoice reconciliation documents is available to all users.
• When set to No, the Reject button is only available for exception handlers and members of the Invoice
Manager group.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

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Related Information

Intelligent Configuration Manager administration

Parameter Management in Intelligent Configuration Manager

Require reason codes for invoice rejection

Specifies whether users must select one or more reason codes from a list of custom-defined options when
rejecting an invoice during invoice reconciliation. The rejection reason is visible to suppliers.

ID Application.Invoicing.UseInvoiceRejectionReasonCodes

Name Require reason codes for invoice rejection

Default value No

For information about configuring rejection reason codes for invoices, see Rejection Reason Codes for Invoices.

If you configure rejection reason codes for invoices, you might want to make comments to suppliers
optional. To do so, set the following parameter to No: Require comments to supplier for invoice rejection,
Application.Invoicing.SupplierRejectionCommentsRequired.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Require comments to supplier for invoice rejection [page 126]

Intelligent Configuration Manager administration
Parameter Management in Intelligent Configuration Manager

Prevent dispute of invoices

Determines whether to hide the Accept Expected option on the Action menu of invoice reconciliation documents.
If the option is hidden, invoice exception handlers can't dispute invoices. They must either accept the information
on the invoice or reject the entire invoice.

ID Application.Invoicing.DisallowDispute

Name Prevent dispute of invoices

Default value No

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124 PUBLIC Self-Service Site Configuration Parameters for Reconciling Invoices
The Accept Expected action indicates that the approver does not agree to pay the amount specified on the invoice.
Instead, the approver agrees to pay ("accepts") the amount specified on the associated reference document, such
as the purchase order, contract, or receipt, or the amount calculated by the tax calculation engine.

 Note

This parameter is provided for European sites. European regulations require that invoices be rejected entirely or
paid in full. The Accept Expected action allows "short pay" on invoices, which violates this regulation.

Possible values for this parameter are Yes and No.

• When this parameter is set to No, invoice exception handlers can dispute the information on invoices by
choosing the Accept Expected action when resolving an exception.
• When this parameter is set to Yes, the Action menu for invoice exceptions doesn't include an Accept Expected
option.
• To prevent dispute for an individual exception type, set this parameter to No, and set the Prevent Invoice
Dispute option for the exception type in Ariba Administrator.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Prevent acceptance of specific invoice exceptions [page 125]

Intelligent Configuration Manager administration
Parameter Management in Intelligent Configuration Manager

Prevent acceptance of specific invoice exceptions

Prevents users from accepting specific types of invoice exceptions by hiding the Accept Invoice actions for those
exceptions. Enter the unique names of exception types.

ID Application.Invoicing.DisallowAcceptOnExceptionTypes

Name Prevent acceptance of specific invoice exceptions

Default value Empty list

This parameter removes the Accept Invoice option from the Action menu in the invoice reconciliation user
interface for the invoice exception types you specify. By removing the option to accept the information provided by
suppliers on their invoices for specific invoice exceptions, you can enforce that you only pay for what was ordered.

The parameter value is a comma-separated list of strings, each of which represents the unique internal identifier of
an invoice exception type in the site. Enter the unique name of the invoice exception types for which to remove the
Accept Invoice option. For example: POPriceVariance.

 Note

Certain countries/regions require that invoices are paid in full or rejected if there are possible invoice errors.

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To get the unique internal identifiers of the preloaded invoice exception types, either export the invoice exception
types from your site or see the Invoicing Default Data worksheet in the Reference Data Workbooks.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Prevent dispute of invoices [page 124]

Intelligent Configuration Manager Administration
Parameter Management in Intelligent Configuration Manager

Require comments to supplier for invoice rejection

Specifies whether an approver must add comments to the supplier when rejecting an invoice reconciliation
document.

ID Application.Invoicing.SupplierRejectionCommentsRequired

Name Require comments to supplier for invoice rejection

Default value No

When set to Yes, the approver must enter comments that are visible to the supplier. Comments can be entered
in the Comments field in the user interface or, in sites enabled for email approvals, in the space provided in the
message body of an email notification.

If you configure rejection reason codes for invoices, you might want to make comments to suppliers optional.

The following points pertain to comments submitted through email approval:

• If the parameter is set to Yes, and a user has opted to receive email notifications in compact text format, when
the user enters a comment while rejecting the IR in email, those comments are treated as comments to the
supplier and meet the requirement.
• If the parameter is set to No, and a user has opted to receive email notifications in compact text format, when
the user enters a comment while rejecting the IR in email, those comments are treated as internal.
• If the parameter is set to Yes and a user has not opted to receive email notifications in compact text format, the
user must enter a comment in the Comments to Supplier field to meet the requirement.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Require reason codes for invoice rejection [page 124]

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126 PUBLIC Self-Service Site Configuration Parameters for Reconciling Invoices
Intelligent Configuration Manager administration
Parameter Management in Intelligent Configuration Manager

Require invoice reconciliation in the ERP system

Specifies whether invoices require a final reconciliation step in your ERP system before they can progress to Paying
status. This parameter applies to SAP Ariba Invoice Management.

ID Application.Invoicing.ExternalReconciliationEnabled

Name Require invoice reconciliation in the ERP system

Default value Yes

Possible values for this parameter are Yes and No.

• When set to Yes, and an invoice reconciliation document is finally approved, the status changes to Awaiting
External Reconciliation instead of Paying.
• When set to No, and an invoice reconciliation document is finally approved, the status changes to Paying.

If your invoices require reconciliation in the ERP system, the following additional parameter must be set to Yes:
Application.Invoicing.SendIRtoAN. SAP Ariba sets this parameter for you.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Intelligent Configuration Manager administration

Parameter Management in Intelligent Configuration Manager

Remit To on invoice reconciliations is from invoice

Determines whether the default Remit To address on invoice reconciliation (IR) documents is the
Remit To address on the invoice or the first Remit To address found for the supplier. This
parameter applies to sites that process supplier bank details in invoices during invoice reconciliation
(Application.Invoicing.SupportSupplierBankInfoOnInvoices is set to Yes).

ID Application.Invoicing.RemittanceLocationUsingRemitToId

Name Remit To on invoice reconciliations is from invoice

Default value No

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This parameter applies to cXML invoices transmitted between SAP Business Network and the SAP Ariba invoicing
solution, as with SAP Ariba Invoice Management sites and merged sites that include both SAP Ariba Buying and
Invoicing and SAP Ariba Invoice Management.

In sites that process bank details in invoices, if the invoice doesn't have a payment method specified, and
there are multiple Remit To addresses configured for the supplier location, the parameter Remit To on invoice
reconciliations is from invoice works as follows:

• If set to Yes, IR documents use the Remit To address on the invoice.

• If set to No, IR documents use the first remittance address of the supplier location.

Your site uses the following bank information to find the right Remit To address, adding only the IDs or numbers
and omitting fields such as account type and branch name: ABA routing number, Swift ID, iBan ID, account ID.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Parameter

Application.Invoicing.SupportSupplierBankInfoOnInvoices (set by SAP Ariba Support)

Determines whether the SAP Ariba solution processes the supplier bank details in cXML
invoices (in the payment method extrinsic) and whether the supplier bank details in cXML
invoices from SAP Business Network are used on invoice reconciliation (IR) documents.
Setting this parameter to Yes helps the SAP Ariba solution find the correct remittance
location.
Suppliers might send updated bank details in cXML invoices over SAP Business Network.
This parameter applies to cXML invoices transmitted between SAP Business Network
and the SAP Ariba invoicing solution. It's most likely to pertain to SAP Ariba Invoice
Management sites and merged sites that include both SAP Ariba Invoice Management and
SAP Ariba Buying and Invoicing.
If this parameter is set to No, the SAP Ariba solution doesn't process updated bank
details in invoices sent by suppliers. Supplier-specified bank details are not included in
the reconciled invoices sent to SAP Business Network for payment processing.
If this parameter is set to Yes, the following bank details can be received and processed
during the invoice reconciliation process and are included in the reconciled invoices sent to
SAP Business Network:

• Bank ID Type
• Bank ID
• Bank Account ID
• Bank Account Type
• IBAN
• Branch Name
• Account Name

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128 PUBLIC Self-Service Site Configuration Parameters for Reconciling Invoices
Related Information

Intelligent Configuration Manager administration

Parameter Management in Intelligent Configuration Manager

Enable goods receipt-based invoice verification

Specifies whether goods receipt-based invoice verification is enabled. If set to Yes, for order lines that require
receipt-based invoice verification, invoice quantities and prices are reconciled against receipts.

ID Application.Procure.EnableGRBasedInvoice

Name Enable goods receipt-based invoice verification

Default value No

When this parameter is enabled, the parameter Application.Procure.EnablePriceDateControl (Use

receipt unit price to validate invoice unit price) must also be set to Yes to ensure that the invoicing solution
verifies the prices for line items on invoices based on the prices specified for the items on the associated receipts.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Goods Receipt-Based Invoice Verification [page 74]

Match receipts to invoices without ship notices [page 129]
Intelligent Configuration Manager Administration
Allow edits to matched quantity in receipt matching [page 130]
Parameter Management in Intelligent Configuration Manager

Match receipts to invoices without ship notices

On sites enabled for goods receipt-based invoice verification, determines whether invoices must include ship notice
IDs in order to be matched to receipts automatically.

ID Application.Invoicing.MatchReceiptToInvoiceWithoutShipNotice

Name Match receipts to invoices without ship notices

Default value No

Possible values for this parameter are Yes and No.

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• When set to Yes:
• Invoices without ship notice IDs are matched to goods receipts based on purchase order.
• Invoices with ship notice IDs are matched to goods receipts that have the same ship notice ID as the
invoice.
• When set to No, automatic matching of invoices to receipts is based solely on ship notice ID. Invoices without a
ship notice ID are not matched to receipts.

This parameter is applicable if the following parameter is set to Yes: Enable goods receipt-based invoice
verification, Application.Procure.EnableGRBasedInvoice.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Enable goods receipt-based invoice verification [page 129]

Intelligent Configuration Manager Administration
Parameter Management in Intelligent Configuration Manager

Allow edits to matched quantity in receipt matching

Determines if users can edit the matched quantity when manually matching receipts to invoice lines.

ID Application.Invoicing.AllowMatchedReceiptQuantityEdit

Name Allow edits to matched quantity in receipt matching

Default value No

Some accounts payable departments need the ability to choose specific quantities from multiple receipts when
matching receipts to invoice lines. When this parameter is set to Yes, the system determines the default matched
quantity, but users can change the value.

The values entered for matched quantity are validated as follows. If the user tries to submit invalid changes, an
error message appears.

• The total matched quantity for all matched receipts must be less than or equal to the invoice quantity.
If the total matched quantity is less than the invoice quantity, there's an informational warning, but the user
can still proceed.

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130 PUBLIC Self-Service Site Configuration Parameters for Reconciling Invoices
 • The matched quantity for a receipt must be 0 or more.
• The matched quantity for a receipt must not exceed the receipt's available quantity.

When this parameter is set to No, the system determines the matched quantity, and users can't change the value.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Match receipts to invoices without ship notices [page 129]

Enable goods receipt-based invoice verification [page 129]
Intelligent Configuration Manager Administration
Parameter Management in Intelligent Configuration Manager

Days to delay creating an IR document

In sites enabled for goods receipt-based invoice verification, specifies the number of days to delay the creation of
the invoice reconciliation (IR) document after an invoice has been approved if the supporting documents haven't
arrived yet. Set this parameter to prevent premature invoice exceptions due to missing receipts.

ID Application.Invoicing.DaysToDelayIRCreatio
n

Name Days to delay creating an IR document

Default value 0

When a goods receipt-based invoice is approved in the SAP Ariba solution, and receipts are still outstanding,
the invoice remains in Awaiting Receipts status during the delay period. The invoice reconciliation document is
created within 6 hours after the specified number of days has elapsed.

Members of the Invoice Administrator group can manually start the reconciliation process during the delay period.

This parameter is applicable if the following parameter is set to Yes: Enable goods receipt-based invoice
verification, Application.Procure.EnableGRBasedInvoice.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Enable goods receipt-based invoice verification [page 129]

Intelligent Configuration Manager Administration
Parameter Management in Intelligent Configuration Manager

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Third-party tax calculation for buying and invoicing
Specifies if your site is integrated with a third-party tax calculation engine to calculate taxes for approvable
documents such as requisitions and invoice reconciliations. If set to Yes, taxes are calculated when tax
managers initiate tax calculation for the documents or when users submit the documents for approval. If
set to Yes, you can set another parameter to turn on enhanced third-party tax calculation for invoicing,
Application.Procure.EnhancedTaxCalculationInExternalSystems.

ID Application.Procure.EnableTaxCalculationInExternalSystems

Name Third-party tax calculation for buying and invoicing

Default value No

If you set this parameter to Yes, we recommend that the parameter

Application.Procure.EnableTaxesChargesAndDiscount be set to Yes to ensure that taxes
for requisitions are calculated in the third-party tax calculation engine. SAP Ariba sets
Application.Procure.EnableTaxesChargesAndDiscount for you.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Intelligent Configuration Manager Administration

Enhanced third-party tax calculation for invoicing [page 132]
Third-Party Tax Calculation Overview
Parameter Management in Intelligent Configuration Manager

Enhanced third-party tax calculation for invoicing

On sites integrated with a third-party tax calculation engine, specifies if tax calculation includes enhanced tax
information for reconciliation and payment processes. Enhancements include improved handling of summary and
granular tax details, buyer-payable taxes, and accrual taxes. Applicable if Third-party tax calculation for buying
and invoicing (Application.Procure.EnableTaxCalculationInExternalSystems) is set to Yes.

ID Application.Procure.EnhancedTaxCalculationInExternalSystems

Name Enhanced third-party tax calculation for invoicing

Default value No

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

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132 PUBLIC Self-Service Site Configuration Parameters for Reconciling Invoices
Related Information

Intelligent Configuration Manager Administration

Third-party tax calculation for buying and invoicing [page 132]
Third-Party Tax Calculation Overview
Enhanced Third-Party Tax Calculation for Invoices
Parameter Management in Intelligent Configuration Manager

Enhanced warnings for force actions on invoices and

payments
Determines whether to show enhanced warnings when users force an invoice or payment document to the next
status. Enhanced warnings explain that the force action doesn't send the document to any other system, such as
SAP Business Network or the ERP system. It only changes the document status.

ID Application.Approvable.EnableEnhancedWarningsForForceInvoiceAndPaymentAc
tions

Name Enhanced warnings for force actions on invoices and payments

Default value Yes

This parameter applies to the following actions: Force Reconcile on invoices, Force Pay and Force Reject
on invoice reconciliations, Force Send on payment requests, and Force Pay and Force Cancel on payment
transactions and advance payments.

If this parameter is set to Yes, the enhanced warnings are displayed.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Intelligent Configuration Manager Administration

Parameter Management in Intelligent Configuration Manager

Use receipt unit price to validate invoice unit price

Determines whether the SAP Ariba solution uses the unit price on the receipt for price verification on invoices.

ID Application.Procure.EnablePriceDateControl

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Name Use receipt unit price to validate invoice unit price

Default value No

When this parameter is set to Yes, for invoice items that reference an order item marked as Ship Notice Required,
the SAP Ariba solution compares the price on the invoice with the price on the receipt, not the order. For sites that
use goods receipt-based invoice verification, the recommended setting is Yes.

To enable goods receipt-based invoice verification, you must also set the parameter Enable goods receipt-based
invoice verification (Application.Procure.EnableGRBasedInvoice) to Yes.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Enable goods receipt-based invoice verification [page 129]

Intelligent Configuration Manager Administration
Receipt Dispute for Variance Exceptions
Parameter Management in Intelligent Configuration Manager

Invoicing and Payment Process Guide

134 PUBLIC Self-Service Site Configuration Parameters for Reconciling Invoices
SAP Ariba-Controlled Parameters for Managing
Payment Documents

Some of the functionality for managing payment documents is controlled by configuration options that SAP
Ariba Support sets for you. These parameters apply to SAP Ariba Buying and Invoicing and SAP Ariba Invoice
Management.
Application.Invoicing.ShowInvoiceAndPaymentsToRequisitionCreator (set by SAP Ariba Support)
This parameter specifies whether or not requisition requesters and preparers can view
related invoices and payments on the requisition's Summary tab. When this parameter is
set to Yes, requisition requesters and preparers can click the order number link for each
requisition line item, and then click the Invoice and Payment tabs on the order to view
related invoices and payments. The default setting is No.
Application.Invoicing.ShowPaymentsToInvoiceCreator (set by SAP Ariba Support)
This parameter specifies whether or not invoice requesters and preparers can view related
payments. When this parameter is set to Yes, invoice requesters and preparers can view
related payments on the Payment tabs of the Order and Invoice pages. The default setting
is No.
Application.Settlement.DynamicDiscountsEnabled (set by SAP Ariba Support)
This parameter specifies whether or not the discounting capability is enabled in a site.
Discounting capabilities enable buyers to pay suppliers early in exchange for discounts. The
default value is No.

 Note

This parameter only affects suppliers that send payment requests through SAP
Business Network. Suppliers that use the External System payment model can use
dynamic discounting if discount management is enabled for them in the buyer's SAP
Business Network account, regardless of the setting for this parameter.

Application.Settlement.LocalPaymentModelSupported
This parameter determines whether the local payment model is supported. A local payment
model sends the reconciled invoice to SAP Business Network to be processed, not to the
buyer's external ERP system.
When this parameter is set to Yes, the Pay Via dropdown in searches for invoice
reconciliation documents includes the value Local. (Pay Via means payment model.) Also,
if a payment doesn't include a supplier or supplier location, then Pay Via is set to Local in
that payment.
If a supplier location for the payment is configured with a local payment model, this
parameter has no effect. The reconciled invoice is sent to SAP Business Network for
processing.
The default value of this parameter No.
Application.Settlement.PaymentDiscountSelectionPolicy (set by SAP Ariba Support)

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 This parameter specifies one of a set of predefined discount policies for payments. The
value must be one of the following keys:

• TakeDiscountNone, which selects the payment schedule corresponding to the net

term, with no discounts applied.
• TakeDiscountMaximum, which selects the payment schedule that offers the largest
discount.
• TakeDiscountApplicable, which selects a payment schedule based on the
transaction date, using the best discount that is available for the given transaction
date.
The default value is TakeDiscountMaximum.

Application.Settlement.PaymentTermsLineTypeCategories (set by SAP Ariba Support)

This parameter defines which line types are to be considered when evaluating payment
discounts. For example, you might choose to exclude tax items or shipping charges when
calculating payment discounts. The value is a comma-separated list of integers, where each
integer represents a standard line category. The default value is 1. Valid integer values are:

• 1 - Procurement line items

• 2 - Tax charges
• 4 - Freight charges
• 8 - Handling charges
• 16 - Special charges
• 32 - Discounts

Application.Settlement.PaymentModel (set by SAP Ariba Support)

This parameter specifies the preferred payment model for the site. For new sites, the
External Pay payment model is the only supported option. In the default configuration,
this parameter is set to ExternalPay. There is no default value.

 Note

The payment model specified with the AribaPay setting is deprecated and will be
de-supported in a future release; it is only available in older implementations of SAP
Ariba Invoice Management and SAP Ariba Buying and Invoicing.

Payment models can also be associated with specific suppliers (in

the SupplierSupplement.csv file) and supplier locations (in the
SupplierLocationSupplement.csv file).

Application.Settlement.PaymentRequestSendMethodOption (set by SAP Ariba Support)

This parameter specifies a method for sending payment requests, which in turn defines
whether or not the status of invoice reconciliation and payment request documents in your
invoicing solution depends on the success or failure of invoices in integrated ERP systems.
The following values are valid settings for this parameter:

• Default: the default value for the parameter. In this case, the status of the invoice
reconciliation and payment request in your invoicing solution does not change based on
the success or failure of the invoice in the ERP system. You must use this setting if you
export payment requests using SAP Integration Suite, managed gateway (formerly SAP
Ariba Cloud Integration Gateway).

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136 PUBLIC SAP Ariba-Controlled Parameters for Managing Payment Documents
 • Asynchronous Push: the recommended setting for sites that use file-based
integration between SAP Ariba Buying and Invoicing and the ERP system. In this case,
the status of the invoice reconciliation and payment request in SAP Ariba Buying and
Invoicing changes based on the success or failure of the invoice in the ERP system. This
value is not applicable to SAP Ariba Invoice Management.
• DirectPush: the recommended setting for sites that use web services-based
integration between SAP Ariba Buying and Invoicing and the ERP system. In this case,
the status of the invoice reconciliation and payment request in SAP Ariba Buying and
Invoicing changes based on the success or failure of the invoice in the ERP system. This
value is not applicable to SAP Ariba Invoice Management.

Application.Settlement.EnableAdvancePayment (set by SAP Ariba Support)

This parameter enables or disables the functionality to create advance payments. By
default, this parameter is disabled. For SAP Ariba Buying and Invoicing, also enable the
enhanced invoicing user interface to adjust advance payments against invoices.
Application.Settlement.EnableAdvancePaymentForCopyOrders (set by SAP Ariba Support)

This parameter specifies whether users can create advance payments for copy orders.

The default value of this parameter is No.

Application.Settlement.TransactionPush.AdvancePayment.Enabled (set by SAP Ariba Support)

This parameter specifies whether the site should push advance payment documents to a
pending queue for export. Advance payments documents are exported to a CSV file only
if this parameter is enabled. This parameter does not affect the web services export of
advance payments.

By default, this parameter is enabled.

Application.Settlement.TransactionPush.AdvancePayment.Statuses (set by SAP Ariba Support)

This parameter enables you to specify a list of status strings that, upon status change,
will cause an advance payment to be queued for export. For example, if the value of this
parameter is set to Submitted, Approved, Canceling, an advance payment document will get
queued for export when its status changes to Submitted, Approved, or Canceling.

The default value of this parameter is Approved and Canceling.

Application.Invoicing.AllowExportingTaxSplitAccountings (set by SAP Ariba Support)
In SAP variants, specifies whether tax line split accounting is included in exported
payment requests. When set to Yes, split accounting information for all tax lines in the
invoice reconciliation document is included. This parameter applies to the following export
tasks: Export Payment Requests, Export Payment Requests with Advance Payments,
Export Payment Requests Asynchronously, Export Payment Requests with Receipts
Asynchronously. It’s also applicable to sites using SAP Integration Suite, managed gateway
for spend management and SAP Business Network.

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Self-Service Site Configuration Parameters for
Managing Payment Documents

Process tax accrual payments [page 138]

ERP errors that trigger auto-resend of documents [page 138]

Process tax accrual payments

When set to Yes, tax difference is accrued for invoice exceptions listed in the parameter Invoice exception types
for accrued tax payments (Application.Invoicing.TaxAccrualExceptions) if the computed tax amount
is more than invoice tax, and the invoice exception handler disputes the invoice tax amount by accepting the
expected tax amount. Payment request documents contain accrual tax amounts.

ID Application.Invoicing.ProcessPaymentsForTaxAccrual

Name Process tax accrual payments

Default value Yes

When set to No, tax difference is not accrued.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Intelligent Configuration Manager administration

Parameter Management in Intelligent Configuration Manager

ERP errors that trigger auto-resend of documents

Lists the ERP errors for which you want the SAP Ariba solution to try resending documents automatically. For
example, if sending a payment to the ERP system causes ERP error 123, and error 123 is in this list, the payment is
automatically resent. Add the errors using IDs from the ErrorNumber or ErrorCode element of the WSDL.

ID Application.Invoicing.ERPErrorsThatTriggerAutoResend

Name ERP errors that trigger auto-resend of documents

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138 PUBLIC Self-Service Site Configuration Parameters for Managing Payment Documents
Default value Empty list

Typically, this parameter is used for errors that are quickly resolved in the ERP system, such as temporary push
errors. When the ERP system sends an error that's in this list, SAP Ariba Buying and Invoicing tries resending the
payment request for up to 5 tries.

Payment requests that currently have an error are listed on a Failed Payments tab of the Payments page (under
Manage Payments ). To see the error code, open the payment request and check the ERP Error Code field.

For SAP variants, the errors are identified in the WSDL by ErrorNumber. For other ERP systems, the errors are
identified by ErrorCode.

 Note

This feature uses web services to transfer information to and from the ERP system. This feature doesn't
support the OK-to-pay file.

A member of the Customer Administrator group sets this parameter in the Intelligent Configuration Manager
workspace.

Related Information

Intelligent Configuration Manager administration

Parameter Management in Intelligent Configuration Manager

Invoicing and Payment Process Guide

Self-Service Site Configuration Parameters for Managing Payment Documents PUBLIC 139
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Invoicing and Payment Process Guide
Important Disclaimers and Legal Information PUBLIC 141
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U.S. Patent Nos. 6,199,050; 6,216,114; 6,223,167; 6,230,146; 6,230,147;
6,285,989; 6,408,283; 6,499,018; 6,564,192; 6,871,191; 6,952,682;
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Other Ariba product solutions are protected by one or more of the

following patents:

U.S. Patent Nos. 6,199,050, 6,216,114, 6,223,167, 6,230,146, 6,230,147,

6,285,989, 6,408,283, 6,499,018, 6,564,192, 6,584,451, 6,606,603,
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