Part IV 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 purchase orders and goods received.

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 you read the concept of indicators in part 3 of the series first.

Three TOP indicators of purchase orders and goods received

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 purchase orders and goods receivedwill be introduced.

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

Items purchased with and without purchasing framework agreements

This indicator is associated with the audit objective of saving opportunities.

There is the risk that various purchasing conditions were applied to a specific material.

The criteria for this indicator is:

The document will be marked when an item has been procured both by a normal purchase order as well as a frame contract related order.

Goods receipts without purchase order

This indicator is associated with the audit objective process standardization.

There is the risk that invoice verification will be hindered due to the absence of a purchase order.

The criteria for this indicator is:

The document will be marked because it is linked to a material document with the movement type 501. 501 means ‘goods receipt without purchase order’.

Purchase orders with changed delivery tolerances

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

There is the risk that PO approval procedures might have been circumvented.

The criteria for this indicator is:

The document will be marked because delivery tolerances have been changed.