Invoice auditing in SAP

Posted by Prof. Dr. Nick Gehrke on Oct 28, 2016 5:30:00 PM

Part V of the series: “Digitization of auditing SAP Purchase Processes”

Today’s blog post introduces three interesting indicators for exposing process shortcomings in the area of invoice auditing.

  1. Digitization of auditing SAP purchase processes
  2. How process auditing is transformed through digitization
  3. Automated auditing of SAP master data
  4. Auditing of purchase orders and goods received
  5. Invoice auditing in SAP
  6. Just pay it twice: auditing payments in SAP
  7. The search for exotic processes
  8. Segregation of Duties in the SAP purchase process
  9. SAP data structure for the purchase to payables process
  10. The end of digitization - professional judgement in procurement

 

Before you proceed reading on the details of the indicators, I would recommend to read the concept of indicators in part 3 of the series first.

Auditing vendor invoice.png
 

Three TOP indicators for vendor invoices

Every indicator is associated with one process, one process area, one audit objective and one risk respectively. In the following, three indicators from the area of vendor invoices will be introduced.

Altogether I have designed and implemented 45 indicators for the purchase process. You can download the details about all purchase indicators here.

 Download

 

 

Very high incoming invoice amount

This indicator is associated with the audit objective of compliance and correctness.

There is the risk that a very high invoice amount was invoiced for a specific vendor.

The criteria for this indicator is:

The document will be marked because it contains a very high invoice amount for a specific vendor. Very high means that the invoice amount is more than six standard deviations above the average invoice amount of the specific vendor. Vendors are only taken into consideration when more than 20 different invoice documents for the specific vendor have been found. The outlier analysis is based on the inequality of Tschebyscheff.

 

Incoming invoice with VAT in corporate group

This indicator is associated with the audit objective of compliance and correctness.

There is the risk that VAT in an incoming invoice has been charged although the transaction was not taxable (VAT group).

The criteria for this indicator is:

The document will be marked when the VAT is charged and the vendor belongs to the corporate group and both, the vendor and the own company are in the same EU country or the supplying country and receiving country are the same (Neglect of VAT group).

 

Invoice cleared before goods received

This indicator is associated with the audit objective of compliance and correctness.

There is the risk that invoice was booked although the services were not rendered.

The criteria for this indicator is:

The document will be marked when the invoice was cleared prior to the posting date of the goods received document.

 

Topics: Purchase, Invoice, SAP, Audit

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