Why it matters for manufacturers
- Freight, pallets and surcharges come on the bill, but not on the order.
- Receiving is done at the plant dock, often by a different person from whoever raised the order, so the goods receipt is the only proof of what came in.
For manufacturers in S/4HANA
- Plan freight and customs on the PO item with the delivery cost conditions: a fixed amount, an amount by quantity or a percentage of goods value. The cost goes into material value at goods receipt.
- The freight or customs supplier can be a different invoicing party. Enter it in the Inv. Party field on the Details tab when you invoice.
- A bill with delivery costs that were not on the PO is an unplanned delivery cost. Enter it on the Unplanned Delivery Costs tab of Create Supplier Invoice. By default it spreads across the invoice items by value.
- For repeat consumables where the supplier agrees not to invoice, Create Evaluated Receipt Settlement posts the invoice from the goods receipt and the PO price.
What S/4HANA does on its own
S/4HANA matches a supplier invoice to the PO item and, where goods receipt based invoice verification is set, to the goods receipt. SAP proposes the open PO items and quantities. If the difference is outside the tolerance limits, the invoice posts but is blocked for payment until someone releases it.
- Tolerances set in configuration.
Service items match against service entry sheets.
What you need and the setup steps: PO matching for S/4HANA.
Example
Example Steel Distribution sends invoice 9902 for a purchase order of 12 tonne of steel plate. The plant booked in 8 tonne on Tuesday and 3 tonne on Friday.
| Line | Amount | What the check finds |
|---|---|---|
| Steel plate 10 mm, 11 tonne invoiced | $15,400.00 | Receipts show 11 tonne, so quantity agrees |
| Pallets and strapping | $120.00 | Not on the order |
| Steel plate, 1 tonne invoiced early | $1,400.00 | Not yet received |
In S/4HANA the 11 tonne passes against the two receipts. The unreceived tonne and the pallet fee are held until the plant confirms receipt or the buyer adds a code.
Common mistakes
- Booking in goods by order quantity, not what came off the truck, so the match always passes.
- Treating pallet and freight lines as errors instead of landed cost.
Step-by-step guides for S/4HANA
- How to match a supplier invoice to a purchase order in S/4HANA
- How to handle a partial delivery against a purchase order in S/4HANA
- How to set a price tolerance on purchase order matching in S/4HANA
What Pulsify adds
Pulsify matches each bill line to a purchase order line and flags extra quantity, a different price or lines not on the purchase order. Pulsify connects to S/4HANA. We set up the connection for you. More about PO matching in Pulsify or Pulsify for manufacturers.
More help
- PO matching in SYSPRO for manufacturers
- PO matching in Business Central for manufacturers
- PO matching in Dynamics 365 Finance for manufacturers
- Supplier price checks in S/4HANA for manufacturers
- Invoice approvals in S/4HANA for manufacturers
- Multi-entity accounts payable in S/4HANA for manufacturers
- Duplicate invoice checks in S/4HANA for manufacturers
- All S/4HANA how-to guides
Sources
Last checked 2026-10-19.
- learning.sap.com/courses/invoice-verification-in-sap-s-4hana/entering-delivery-costs-1
- learning.sap.com/courses/business-processes-in-sap-s-4hana-sourcing-procurement/creating-invoices-automatically-using-evaluated-receipt-settlement
- learning.sap.com/courses/implementing-sap-s-4hana-cloud-public-edition-sourcing-and-procurement/outlining-automated-invoice-settlement_cc9f7a3a-71af-42eb-83c1-71f78f4a10fe
- www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/tax-invoices
Common questions
How does S/4HANA handle freight that was not on a manufacturer's PO?
Enter it as an unplanned delivery cost on the invoice. It spreads across the invoiced items by value, or posts to a separate G/L account if Customizing says so. Planned freight is set on the PO item instead.
How does a manufacturer match raw materials delivered in parts?
Match each bill to the goods receipt lines booked in so far. The balance stays open on the order. This stops you paying for material that has not reached the plant.
Is three way match built into S/4HANA?
Yes. Invoice verification compares the invoice with the PO item and, for goods receipt based items, with the goods receipt. Gaps outside the tolerance limits block the invoice for payment.
Pulsify setup guides
Want this done for you?
Book a call to see how Pulsify handles PO matching in S/4HANA for manufacturers.