What is invoice verification in SAP MM?

Answer 1

Invoice Verification in SAP MM is the process of checking and posting the vendor’s invoice against the Purchase Order and Goods Receipt to ensure that the payment is correct.

Key Idea

In SAP MM, invoice verification confirms that:

The price in the invoice matches the Purchase Order (PO)

The quantity matches the Goods Receipt (GR)

The amount to be paid to the vendor is correct

This process is also called Three-Way Matching.

Three-Way Matching

Invoice verification compares:

Purchase Order (PO) – what was ordered

Goods Receipt (GR) – what was received

Invoice – what the vendor billed

If all three match, the invoice can be posted for payment.

Main Functions of Invoice Verification

Verifies vendor invoices

Checks price and quantity differences

Posts the invoice to accounting

Updates vendor liability

Allows payment processing

Common Transaction Code

MIRO – Enter Vendor Invoice

✅ Example:

A company orders 100 laptops through a purchase order.

After receiving the laptops (Goods Receipt), the vendor sends an invoice.

SAP checks whether the PO, GR, and invoice details match before approving payment.