http://www.checklist20.com/bestpractices.htmlSAP Procurement Audit Checklisthttp://www.checklist20.com/bestpractices.html#cid=166&cn=SAP Procurement&tid=435&tn=Validate the process to reconcile accounts payable with goods and services received.There is no validation of accounts payable and invoices can't be matched with corresponding purchase orders. Unauthorized access to accoutns payable leads to breach of data security ...  View More]]>http://www.checklist20.com/bestpractices.html#cid=166&cn=SAP Procurement&tid=440&tn=Verify Outstanding purchase orders are reviewed periodically and appropriate action is taken . Some purchase orders never get fulfilled which could lead to major issues. ...  View More]]>http://www.checklist20.com/bestpractices.html#cid=166&cn=SAP Procurement&tid=444&tn=Confirm System parameters are set per management rules for defective goods handling process.Unauthorized personnel have access to blocked invoices. Invoices that should be blocked due to defective products get cleared and paid. Vendors who consistently provide defective materials are not blocked from sourcing list. ...  View More]]>http://www.checklist20.com/bestpractices.html#cid=166&cn=SAP Procurement&tid=443&tn= Verify Disbursements are accurate and timely for goods and service received.Payment is made for an unauthorized purchase order or for defective products. Wrong suppliers are credited for the goods received. Inaccurate or untimely payments are made for goods received. ...  View More]]>http://www.checklist20.com/bestpractices.html#cid=166&cn=SAP Procurement&tid=442&tn=Ensure Credit notes and adjustments are created accurately, completely and recorded timely. Unauthorized persons make  changes to credit notes/ vendor accounts. Credit notes are created inaccurately or not within agreed service level agreement. ...  View More]]>http://www.checklist20.com/bestpractices.html#cid=166&cn=SAP Procurement&tid=436&tn=Verify the process to reconcile receipts with no matching purchase order or different quantity.With no process to investigates unmatched quantites on purchase orders and invoices the downstream accounting steps can t be completed and system cant complete the purchase order cycle. ...  View More]]>http://www.checklist20.com/bestpractices.html#cid=166&cn=SAP Procurement&tid=429&tn=Verify Release strategy implemented in system is as designed and agreed by managementRelease strategy differs from management policy and company policy is  violated while issuing purchase orders. Purchase orders get blocked for random reasons which are not supported by management. Even with valid reasons to block purchase ord ...  View More]]>http://www.checklist20.com/bestpractices.html#cid=166&cn=SAP Procurement&tid=441&tn= Confirm a centrally maintained exchange table is maintained and foreign currency translations are based on this value.  Accurate exchange rates are not used when processing invoices leading to incorrect payments. Exchange tables data is not centrally maintained and subprocesses across business don't  use same data to process their function ...  View More]]>http://www.checklist20.com/bestpractices.html#cid=166&cn=SAP Procurement&tid=439&tn=Ensure GR/IR account balances are executed and reviewed periodicallyAccounting doesn't get done properly and downstream documents are incorrect or not processed at all. ...  View More]]>http://www.checklist20.com/bestpractices.html#cid=166&cn=SAP Procurement&tid=438&tn=Validate system is configured with quantity and price tolerance limitsWith no tolerance limits for quantity or price the system can verify invoices and hence further processing can't be completed. ...  View More]]>http://www.checklist20.com/bestpractices.html#cid=166&cn=SAP Procurement&tid=437&tn=Verify a three way match to ensure validity and accuracy of accounts payable is performed.The accounts payable don't match vendor invoices or purchase orders. Due to unrestricted access accounts payable get changed by unauthorized personnel compromising data security of accounts payable. ...  View More]]>http://www.checklist20.com/bestpractices.html#cid=166&cn=SAP Procurement&tid=424&tn=Follow conventions to create master data to avoid duplicates and data is stored in correct and consistent mannerFollowing agreed conventions when creating master data avoids duplicates. Purchase orders will be based on only one set of master data. ...  View More]]>http://www.checklist20.com/bestpractices.html#cid=166&cn=SAP Procurement&tid=434&tn=Verify Account Posting process is well defined , accurate and restrict access to only authorized personnel.Accounting is not complete, as per agreed process and not within stipulated agreed time. Security of accounting data is breached as unauthorized personnel have access to it. ...  View More]]>http://www.checklist20.com/bestpractices.html#cid=166&cn=SAP Procurement&tid=421&tn=Validate that access to master data is controlled and secured.Master data in SAP system is the most current information which leads to creation of purchase orders, pricing, agreements, vendor contracts,  service contracts and other key business documents. So, master data access including update and &nbs ...  View More]]>http://www.checklist20.com/bestpractices.html#cid=166&cn=SAP Procurement&tid=423&tn=Ensure that configurable control setting are in accordance with management intentionsAccuracy, completeness and validity of data is compromised when control settings are not set  per agreed rules. ...  View More]]>http://www.checklist20.com/bestpractices.html#cid=166&cn=SAP Procurement&tid=422&tn=Verify access to create and change vendor pricing master data is restricted to authorized individuals.Breach of security and or unauthorized changes to vendor pricing data change might cause overpaying the vendors and financial implication. In addition, not having checks and balances to ensure only authorized personnel have access to master data c ...  View More]]>http://www.checklist20.com/bestpractices.html#cid=166&cn=SAP Procurement&tid=433&tn=A valid agreed process exists for identification, return of defective goods, blocking of invoice and getting credit for such goods.Defective goods are not inspected and get mixed with general inventory. This can lead to quality issues. The defective good don't get returned and invoice gets paid increasing cost of materials. No credit is obtained  for defective material&n ...  View More]]>http://www.checklist20.com/bestpractices.html#cid=166&cn=SAP Procurement&tid=432&tn=Order entry data is transferred completely and accurately to shipping and invoicing documents and only authorized personnel have access.Vital data changes leads to mismatching purchase orders and shipping /invoicing documents leading to breakdown in ordering process. There is no way to validate correct quantities/ prices. Breach of Security and data when unauthorized personnel hav ...  View More]]>http://www.checklist20.com/bestpractices.html#cid=166&cn=SAP Procurement&tid=431&tn= Process to handle receipts with out purchase is clear and agreed upon. Process for quantity more that purchase order is also clear and agreReceipts are processed even when there is no purchase order attached to it. Good or services received are more than required leading to higher cost of goods sold and higher costs. ...  View More]]>http://www.checklist20.com/bestpractices.html#cid=166&cn=SAP Procurement&tid=430&tn= Process to fulfill purchase order is consistent and management reviews regularly any delay in fulfillment or breakdown of purchasing procesThere are multiple processes of purchase order fulfillment leading to uncertainty and no confidence in the process. Due to lack of review some orders fall through cracks and can lead to major manufacturing issues and backorders. ...  View More]]>http://www.checklist20.com/bestpractices.html#cid=166&cn=SAP Procurement&tid=428&tn=SAP ERP system contains a source list for all materials and allows those materials to be procured from approved vendors only.With no approved vendor list for materials,  purchase orders may go any vendor and there is no quality control over materials. Opportunities to develop vendor relationship gets lost leading to unreliable and uneconomical purchasing. ...  View More]]>http://www.checklist20.com/bestpractices.html#cid=166&cn=SAP Procurement&tid=427&tn=Restrict access to create, change, or cancel purchase requisitions, purchase orders, and outline agreements to authorized personnel onlyBreach of security and or unauthorized changes to vendor pricing data change might cause accounting errors. Vendor relationships can strained due to such errors. ...  View More]]>http://www.checklist20.com/bestpractices.html#cid=166&cn=SAP Procurement&tid=426&tn= Purchase orders are handled as per agreed valid process and are processed completely and on time.All orders are not processed in exactly same way due to lack of a valid accurate process. There is delay in processing of some purchase orders due to lack of standards. ...  View More]]>http://www.checklist20.com/bestpractices.html#cid=166&cn=SAP Procurement&tid=425&tn=Periodically review inventory master data for accuracy and pertinence.Inventory levels shown in system are inaccurate and not relevant if not reviewed periodically. ...  View More]]>