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SAP Business Fundamentals
Session 3: SAP Finance
AP & AR Overview
December 9, 2011
- 2 - Copyright © 2011 Deloitte Development LLC. All rights reserved.
AgendaCourse Topic Presenters
SAP Finance Overview General SAP and Finance (FI) Overview Introduction to AP & AR Business Concepts
Kelly Snook
FI Master Data Overview Master Data and Organizational Structure
Joshua GladneyTareq Dowla
AP & AR Configuration AP Business Processes and Configuration AR Business Processes and Configuration SAP Standard and Custom Reports
Jessica Riley
Lessons Learned & Business Example Mary-Anne Taylor
Conclusion Integration Points with other SAP Modules Questions Course Evaluation
Jessica Riley
- 3 - Copyright © 2011 Deloitte Development LLC. All rights reserved.
Lesson Objectives
After completing this course, participants should be able to:
Describe the key characteristics of Accounts Payable and Accounts Receivable and their location within SAP modules
Explain the organizational structure and master data as related to the SAP Finance modules
Define the key business processes for Accounts Payable and Accounts Receivable
Demonstrate a basic understanding of how to configure the organizational structure and master data for the FI module
Describe the importance of correctly setting up the master data and core process functionalities for Accounts Payable and Accounts Receivable
Elaborate on the negative business impacts that result from incorrect setup
SAP Finance (FI) Overview
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General SAP Overview – SAP ERP Modules and Components
Group Module
Financial
Financial Accounting (FI)
Controlling (CO)
Logistics
Customer Service (CS)Materials Management (MM)
Project Systems (PS)Industry Solutions (IS)
Plant Maintenance (PM)Production Planning and Control (PP)
Quality Management (QM)Sales and Distribution (SD)
Human resourcesPersonnel Management (PA)
Personnel Time Management (PT)
SAP has several modules and subsequent components.
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SAP FI/CO Overview
FinancialModule
Financial Accounting
(FI)
Accounts Payable
Accounts Receivable
Controlling (CO)
Cost Element Accounting
Cost Center Accounting
Profit Center Accounting
Banks General Ledger
SAP Finance and Controlling has multiple components.
Financial Accounting (FI) is the core module for all accounting and finance processes in SAP
Controlling (CO) or “Managerial Accounting” provides cost and revenue analysis for the purpose of planning, reporting, and monitoring the operations of an enterprise
Assets
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The Accounts Payable (AP) application component records and manages accounting data for all vendors. The enterprise will purchase good and services from a vendor.
The Accounts Receivable (AR) application component records and manages accounting data of all customers. The enterprise will sell good and services to a customer.
Accounts Payable & Accounts Receivable Overview
T-Account: Common accounting form in the shape of the capital letter T.
The left side referred to a debit, a decrease in liability or income to the company.
The right side called a credit, an increase in liability or income.
There is a separate T-account for each item in the ledger.
Demo time!
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AP Business ProcessesManagePayables
GeneratePayments
Send Vendor Correspondence
CreateVendor
There are certain basic activities within the Accounts Payable processes.
Create/Maintain Vendor Account
Create and maintain the vendor master record.
Manage Payables
Create/change invoices, debit memos and credit memos
Calculate tax
Manage returns/cancelations, deductions and payment disputes
Generate Payments
Create payments to vendors Invoices
Send Vendor Correspondence
Create account statements, balance confirmations and other standard letters
- 9 - Copyright © 2011 Deloitte Development LLC. All rights reserved.
AR Business ProcessesProcess SalesOrder/Invoice
ReceivePayment
ProcessPayment
CreateCustomer
Send CustomerCorrespondence
There are certain basic activities within the Accounts Payable processes.
Create and maintain Customer Account
Create and maintain the customer master record
Process Sales Order/Invoice
Create and change receivables: invoices and credit memos
Send Customer Correspondence
Create Invoices, the account statement, and claim letters
Issue dunning letters
Receive Payment
Receive partial, automatic, manual or residual payments
Process Payment
Manual payment processing
Automatic payment processing: lockbox or electronic statement
- 10 - Copyright © 2011 Deloitte Development LLC. All rights reserved.
Common Accounting Terms and DefinitionsAccounts
Receivable
Accounts Payable
Profit & Loss Statement
Fiscal Year
General Ledger
Money owed to the business by another for goods or services sold on credit. Money that the business expects to receive.
Money owed by a business to another for goods or services purchased on credit. Money that the business intends to pay to another.
Financial statement that shows the income and expenses for a business. Also referred to as an “income statement” or “operating statement.”
A 12-month accounting period used by a business.
In double-entry accounting, the central listing of all accounts of a business.
Invoice A bill for the sale of goods or services rendered.
Debit
Credit
In double-entry accounting, a decrease in liability or income accounts or an increase in asset or expense accounts.
In double-entry accounting, an increase in liability or income accounts or a decrease in asset or expense accounts.
Balance Sheet A financial statement that provides a summary of a business’s status based on assets, debts, and net worth at a specific date and time.
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Create/Maintain Customer Account
Process Sales Order/Invoice Send Customer Correspondence Receive Payment Process Payment
Knowledge Check
WHAT IS A “BILL FOR THE SALE OF GOODS OR
SERVICES RENDERED”?Invoice
TRUE OR FALSE? ACCOUNTS PAYABLE MANAGES ACCOUNTING DATA FOR ALL CUSTOMERS?
False! Accounts Payable manages accounting data for all vendors. Accounts Receivable manages account data for all customers.
NAME 2 PROCESSES WITHIN ACCOUNTS RECEIVABLE?
SAP FICO Master Data Overview
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Introduction to Master Data Objects
WHY DO I NEED? In the SAP System, all business transactions are posted to and managed in
accounts. You must create a master record for each account that you require.
The master record contains data that controls how business transactions are recorded and processed by the system. It also includes all the information about a customer or vendor that you need to be able to conduct business with him.
The system can be configured to reflect a company’s organizational structure and has the flexibility to incorporate future changes in that structure.
WHAT IS MASTER DATA? Master data is any information that is considered to play a key role in
the core operation of a business.
Master data may include data about clients and customers, vendors, employees, inventory, suppliers, analytics and more.
Master data is typically shared by multiple users and groups across an organization and stored on different systems.
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Finance (FI)
Materials Management (MM)
Sales & Distribution (SD)
Human Resources (HR)
SAP Enterprise Master Data Organizational Structure
Company Code
Business Area B
Business Area A
Controlling AreaClient
Plant A
Sales Organization
Distribution Channel
Division
Personnel Area A
Personnel Area B
Chart of Accounts
Chart of Depreciation
Credit Controlling Area
Plant B Plant C
Purchasing Org
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FI Master Data Organizational Structure
Company Code A
Company Code B
Business Area A
Business Area B
Business Area C
Business Area D
Chart of Depreciation
Controlling Area
Chart of Accounts
Controlling Area - Credit
Client
Dunning Area
Client a self-contained unit in an SAP system with separate master records and its own set of tables (i.e. SAP Biz Fund Corporation)Controlling Area: an organizational unit within a company, used to represent a closed system for cost accounting. A controlling area may include single or multiple company codes that may use different currencies. These company codes must use the same operative chart of accounts.
Chart of Accounts: A chart of accounts provides a framework for the recording of values to ensure an orderly rendering of accounting data. The chart of accounts contains the account number, the account name, and technical information for each G/L account; which may assigned to one or more company codes.
Chart of Depreciation: An object that contains the defined depreciation areas. It also contains the rules for the evaluation of assets that are valid in a specific country or economic area. Several company codes can work with the same chart of depreciation. The chart of depreciation and the chart of accounts are independent of one another.
Credit Controlling Area: An organizational unit that represents an area responsible for granting & monitoring credit. This org unit is either a single company code or, if credit control is performed across several company codes, multiple company codes. Credit information can be made available per customer within a credit control area.
Company Code: The smallest organizational unit of Financial Accounting for which a complete self-contained set of accounts can be drawn up for purposes of external reporting.
Business Area: An organizational unit of financial accounting that represents a separate area of operations or responsibilities within an organization and to which value changes recorded in Financial Accounting can be allocated.
Dunning Area: An organizational unit within a company code from which dunning (process of notification) is conducted. The dunning procedure is controlled and the dunning notices are sent separately per dunning area. A dunning area can represent the following: Division, Distribution Channel, Sales Organization, Business Area.
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Data Captured under the Customer/Vendor Master Data: Name Address Contact Numbers Classification Payment Methods Dunning Procedure Text (Notes) Document Types
Master Record Data – Customer & Vendor vs. Transaction
Customer Master Data
Vendor Master Data
The master records contain data that controls how business transactions are recorded and processed by the system. It also includes all the information about a customer or vendor that you need to be able to conduct business with them.
Note: You must create a master record in the system for each account that you require.
Transactional Data
Data captured under the Transaction Data: Credit Memo Invoice Transaction GL Line Items
Cost Center Planning Open items for customers Debit transaction
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Knowledge Check
WHAT IS ‘MASTER DATA’?
Master Data is any information that is considered to play a key role in the core operation of a business. (i.e. clients, customers, inventory, suppliers data)
TRUE OR FALSE? ONLY ONE BUSINESS AREA MAY BE ASSIGNED TO A COMPANY CODE.
False! A Business Area may be assigned to 1 or more Company Codes.
NAME 3 TYPES OF INFORMATION CAPTURED IN CUSTOMER/VENDOR MASTER RECORDS!
Examples: Name, Address, Contact Numbers, Classification, Payment Methods, Dunning Procedure, Text (Notes), Document Types
SAP Accounts Payable
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Accounts Payable Concepts
There are certain basic activities within the Accounts Payable processes.
ManagePayables
GeneratePayments
Send Vendor Correspondence
CreateVendor
Manage Payables: Invoices usually are generated through a procurement process. They can also be strictly FI related - meaning they originated in FI.
Generate Payments: Payments can be made via manual check, electronic format, letter of credit or other means, depending on the payment terms and methods agreed to when the vendor record was created. The payment program is a popular means for making vendor payments automatically using settings in the vendor master and program configuration.
Send Vendor Correspondence: Various types of correspondence can be generated, including account statements, balance lists, journals, balance audit trails, and other internal evaluations.
Create Vendor: This involves master data related to conducting business by purchasing a product or service either internally or externally. All business transactions in SAP are posted to, managed by and processed using the data in the master record.
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Accounts Payable Concepts – Create Vendor
The vendor master data governs how transaction data is posted and processed for a vendor. The vendor master record has all the data needed to conduct business. It can also integrate with other SAP modules.
ManagePayables
GeneratePayments
Send Vendor Correspondence
CreateVendor
Each vendor master record has a unique number and contains:
Vendor’s general data (i.e. name, address, language, and phone numbers)
Tax numbers
Bank details
Payment methods
Payment terms
Account control data (i.e. G/L reconciliation account)
Purchasing data (Note: This is required if you implement Materials Management)
C. Code –… P. Org - …C. Code – AB02 P. Org - 1002
General Data - 1000234C. Code –AB01 P. Org - 1001
Vendor Master Record
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Accounts Payable Concepts – Create Vendor
In SAP, we use account groups to classify vendors and determine data requirements. To create a master record, you have to specify an account group. The account group cannot be changed after you create the master record.
Account groups determine:
IMG Customization Path: IMG Logistics - General Business Partner Vendors
T-Code OBD2: This is for creating account groups. You can use account groups to determine field status variations, assign number ranges and more.
T-Code XK01: Use this to create a vendor record in SAP. Some designs call for integration with a master data tool for creating and maintaining vendor records.
The type of number assignment
(external or internal)
Which fields are displayed and
their field status
Whether the account is for
one-time vendors
A number rangefor assigning
account numbers
Demo time!
ManagePayables
GeneratePayments
Send Vendor Correspondence
CreateVendor
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ManagePayables
GeneratePayments
Send Vendor Correspondence
CreateVendor
Accounts Payable Concepts – Manage Payables
There are several key fields that will impact how you pay your vendor, when you pay the vendor and if you pay your vendor.
Payment Method
Payment Term
Payment Block
Using payment methods, you determine the medium in which you will make or receive a payment. T-Code FBZP: This is for setting up the payment program, which includes defining payment methods. IMG Customization Path: IMG Financial Accounting Accounts Receivable and Accounts Payable
Business Transactions Outgoing Payments Automatic Outgoing Payments Payment Method / Bank Selection for Payment Program Set up Payment Methods per Country for Payment Transactions
Using payment terms, you can define rules with which the system can determine the required terms of payment automatically.
T-Code OBB8: This is for creating payment terms. IMG Customization Path: IMG Financial Accounting Accounts Receivable and Accounts Payable
Business Transactions Incoming Invoices/Credit Memos Maintain Terms of Payment
Using payment blocking reasons, you can differentiate why invoices are to be blocked for payment. T-Code OB27: This is for creating payment block reasons. IMG Customization Path: IMG Financial Accounting (New) Accounts Receivable and
Account Payable Business Transactions Outgoing Payments Outgoing Payments Global Settings Payment Block Reasons Define Payment block Reasons
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Accounts Payable Concepts – Manage Payables
If a customer is also a vendor, or vice versa, you can use netting to clear open items. Netting is the process of offsetting the open items of a vendor and customer against each other.
Steps for clearing items between a vendor and customer account:
Create a customer master record for the vendor that is also a customer.
Enter the vendor account number in the customer master record.
Enter the customer account number in the vendor master record.
Select the “Clrg with vend.” and “Clrg with cust.” checkbox in the company code data in both the vendor and customer master records.
ManagePayables
GeneratePayments
Send Vendor Correspondence
CreateVendor
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Accounts Payable Concepts – Generate Payments
Payables are paid with the payment program, which supports all standard payment methods in printed form as well as in electronic form.
ManagePayables
GeneratePayments
Send Vendor Correspondence
CreateVendor
Prerequisite Configuration for Payment Program
House banks and bank accounts Payment methods Payment forms
Features of the Payment Program Handles incoming / outgoing payments Covers country-specific payment
features (i.e. payment method) Clears open items between customers
and vendors Makes inter-company payments Pays/clears any type of open item
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Accounts Payable Concepts – Generate Payments
Payment program configuration involves determining:
ManagePayables
GeneratePayments
Send Vendor Correspondence
CreateVendor
What is to be paid.
To do this, you specify rules according to which the open items are selected and grouped for payment.
What is to
be paid
How the payment is
made
When thepayment iscarried out
From where the payment
is made
To whom the payment is
made
To whom the payment is made.
You specify the payee.
When payment is carried out.
The due date of the open items determines when payment is carried out. However, you can specify the payment deadline in more detail via configuration.
How the payment is made.
You determine rules that are used to select a payment method.
From where the payment is made.
You determine rules that are used to select a bank and a bank account for the payment.
IMG Customization Path: IMG Financial Accounting(New) Accounts Receivable and Accounts Payable Business transactions Outgoing payments Automatic outgoing payments Payment method/Bank selection for payment programT-Code FBZP: This is main location for defining all the settings for the payment program.
Demo time!
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Types of Correspondence
Account Statement – displays all items in a specified period along with the balance carried forward.
Open Item List – displays the open items for a certain key date.
Payment Notices – informs which open items have been cleared with payments.
Internal documents – documents that you print out for your accounting department or another department.
IMG Customization Path: IMG Financial Accounting Financial Accounting global settings Correspondence Define Correspondence Types
T-Codes OB77 & OB78: These are for creating a correspondence type and assigning programs in SAP. There are many types of correspondence within SAP.
Accounts Payable Concepts – Send Vendor Correspondence
Steps for Creating Customer Correspondence
Request the desired correspondence type
System prints the specified correspondence type
The print order is put into the SAP spool system for each company code and correspondence type
ManagePayables
GeneratePayments
Send Vendor Correspondence
CreateVendor
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If Materials Management is in scope, then Logistics Invoice Verification (LIV) will likely be used to verify the content, prices and calculations of incoming invoices. The system updates the data saved in the invoice documents in MM and FI.
You must specify a reconciliation account in every vendor master record so that any postings made to a sub-ledger are also posted to the general ledger. This requires that reconciliation accounts have been created appropriately.
Accounts Payable Design Considerations
In some situations, a vendor may use an alternative payee. This requires that the alternative payee is created as a vendor in SAP. You then enter the master record number of the alternative payee vendor in the master record of the first vendor. When the payment program prepares to make payments to this vendor, it will use the name and address of the alternative payee.
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SAP Standard Reports Overview
FBL1N – Vendor Line Item Display (different sorts / line layouts) Payment List
Check Register
Cashed Checks
List of Vendor Line Items
Open Items – Vendor Due Date Forecast
Vendor List
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Knowledge Check
Account Group determines 4 things for a vendor. Name 2 of the 4.
The type of number assignment (external or internal).
Which fields are displayed and their field status
A number range for assigning account numbers
Whether the account is for one-time vendors
TRUE OR FALSE? House banks, payment methods and payment forms must be configured before the payment program.
True! These items are prerequisite configuration for the payment program.
Checks, wire transfers and electronic data interchange are all examples of what?
Payment methods
SAP Accounts Receivable
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There are certain basic activities within the Accounts Receivable processes.
Accounts Receivable Concepts
Process SalesOrder/Invoice
ReceivePayment
ProcessPayment
CreateCustomer
Send CustomerCorrespondence
Create Customer: This involves master data related to conducting business by selling a product or service either internally or externally. All business transactions in SAP are posted to, managed by and processed using the data in the master record.
Process Sales Order/Invoice: Invoices usually are generated by an SD module sales order. They can also be strictly FI related - meaning they originated in FI, without SD integration.
Send Customer Correspondence: Invoices, the account statement, dunning letters, and claim letters are examples of correspondence that a business can send to a customer.
Receive Payment: Payments can be partial, manual, automatic or residual, depending on the payment terms and methods agreed to when the customer was created.
Process Payment: Payments can be processed and cleared either manually by the AR staff or automatically, such as via lockbox or electronic bank statement.
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There are several aspects to consider when designing customer master details. Most companies will typically group their customers based on how they do business. In SAP, we use account groups to classify customers and determine data requirements.
IMG Customization Path: IMG Logistics - General Business Partner Customers Control Define Account Groups and Field Selection for Customers
T-Code OBD2: This is for creating customer account groups. You can use account groups to determine field status variations, assign number ranges and more.
T-Code XD01: Use this to create a customer record in SAP. Some designs call for integration with a master data tool for creating and maintaining customer records.
Accounts Receivable Concepts – Create Customer
Demo time!
Process SalesOrder/Invoice
ReceivePayment
ProcessPayment
CreateCustomer
Send CustomerCorrespondence
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IMG Customization Path: IMG Financial Accounting Global Settings Document Document Types Define Document Types for Entry View
IMG Customization Path: IMG Financial Accounting Global Settings Document Document Number Ranges Define Document Number Ranges
Accounts Receivable Concepts – Process Sales Order/Invoice
IMG Customization Path: IMG Financial Accounting Global Settings Document Line Item Controls Define Posting Keys
This activity is for creating posting keys, a 2-digit numerical key that determines the account type, debit/credit posting, and entry screen layout of during the entry of line items.
Demo time!
Process SalesOrder/Invoice
ReceivePayment
ProcessPayment
CreateCustomer
Send CustomerCorrespondence
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When creating financial documents, there are 4 special check routines that the system performs automatically for the document header fields and the individual line items. You can also select control totals checks to determine if amounts have been entered correctly.
It is important to note that the document will not post until all the checks have been carried out successfully.
IMG Customization Path: IMG Financial Accounting Financial Accounting global settings Tax on Sales / Purchases Calculation Define tax codes for sales and purchases
IMG Customization Path: IMG Financial Accounting Financial Accounting global settings Tax on Sales / Purchases Posting Assign tax codes for non taxable transactions
T-Code FB70: This is the transaction for creating a customer FI invoice in SAP.
Accounts Receivable Concepts
Demo time!
Process SalesOrder/Invoice
ReceivePayment
ProcessPayment
CreateCustomer
Send CustomerCorrespondence
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The SAP dunning program can be used to automatically send payment reminders to those customers that have overdue items. Use the following attributes to control the dunning program based on company-specific needs and requirements.
Accounts Receivable Concepts – Send Customer Correspondence
Key Dunning TermsDunning Procedure - controls how dunning is carried out
by the system. You can define as many dunning procedures as you like.
Dunning Area - an organizational unit within a company code used for the dunning process.
Dunning Level - calculated based on the number of days open items are in arrears, the dunning amount or a percentage paid.
Dunning Block - prevents the program from dunning the item.
Dunning key - determines if item is restricted from dunning or if it is listed separately in the dunning notice.
Process SalesOrder/Invoice
ReceivePayment
ProcessPayment
CreateCustomer
Send CustomerCorrespondence
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Accounts Receivable Concepts – Receive Payment
Process SalesOrder/Invoice
ReceivePayment
ProcessPayment
CreateCustomer
Send CustomerCorrespondence
Tolerance groups help you define how the system should address payment differences.
Payment differences arise during clearing if a customer has made an underpayment, or has made an unauthorized deduction for cash discount and the difference is within, or exceeds defined tolerance limits. You can configure the system to respond in either of these two ways:
IMG Customization Path: Financial Accounting Account Receivable and Accounts Payable Business Transactions Incoming Payments Manual Incoming Payments
T-Codes OBA3 and OBA4: These are for creating tolerance groups for customers and employees.
Defining the maximum difference amount for which the system should adjust the cash discount. The difference is added to or subtracted from the cash discount.
Defining the maximum amounts or percentages for which the system should automatically post any difference to a separate gain or loss account if the cash discount cannot be adjusted.
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There are many ways to process an incoming payment. Lockbox is a very popular process for this in the United States.
IMG Customization Path: Financial Accounting Bank Accounting Business Transactions Payment Transactions Lockbox
T-Codes OB10, OBAY and OBAX: This is for assigning lockbox to a house bank, setting up the lockbox control parameters and defining posting data for the lockbox program.
T-Codes FLBP and FLB2: These are for executing the main lockbox program.
T-Code FEBA_LOCLBOX: This is to manually post process any items that failed to process automatically
Accounts Receivable Concepts – Process Payment
Process SalesOrder/Invoice
ReceivePayment
ProcessPayment
CreateCustomer
Send CustomerCorrespondence
Steps for Lockbox Program Determine file formats from bank Configure house banks and bank accounts Assign lock box to house bank(s) Define control parameters Setup posting data
Financial Accounting - AR - Incoming Payment /Lock Box
V1D
Acc
ount
s R
ecei
vabl
eA
ccou
nts
Rec
eiva
ble
Checks InCash disc paid
Pmt diff.Customer
Down payment
Eve
ntE
vent Pmt received
from customer to Accounting
4.1Post incoming payment from
customer
1
4.2Incoming
Lockbox Filefrom Bank
Electronic Lockbox with
bank?
Yes
No
4.3Post Lockbox file
Lockbox clearingCash disc paid
Pmt diff.Customer
Down Payment
3
No
Yes
Lockbox Check InLockbox clearing
2
Checks Completely
Applied
Resolve Issues
4.4Post-process
Lockbox
End Process4.5
Run Batch Input to Update Customers
Does YPCC_BANKUPD
session exist?No
Process YPCC_BANKUPD session to update Customer Master
Yes
Financial Accounting - AR - Incoming Payment /Lock Box
V1D
Acc
ou
nts
Re
ceiv
ab
leA
cco
un
ts R
ece
iva
ble
Checks InCash disc paid
Pmt diff.Customer
Down payment
Eve
nt
Eve
nt Pmt received
from customer to Accounting
4.1Post incoming payment from
customer
1
4.2Incoming
Lockbox Filefrom Bank
Electronic Lockbox with
bank?
Yes
No
4.3Post Lockbox file
Lockbox clearingCash disc paid
Pmt diff.Customer
Down Payment
3
No
Yes
Lockbox Check InLockbox clearing
2
Checks Completely
Applied
Resolve Issues
4.4Post-process
Lockbox
End Process4.5
Run Batch Input to Update Customers
Does YPCC_BANKUPD
session exist?No
Process YPCC_BANKUPD session to update Customer Master
Yes
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You can restrict access to master records in order to prevent unauthorized changes from being made. You can setup authorization groups to restrict which users have access to display and/or change master data.
You must specify a reconciliation account in the customer master record so that all postings made to a sub-ledger are also posted to the general ledger. This requires that reconciliation accounts have been created appropriately.
Accounts Receivable Design Considerations
On a project, the AR team will often work with the AP and GL teams to define document types and posting keys. When designing these elements, be sure to maintain consistency. The document type specifies which account types you can post to. The posting key specifies which account types you can post to. A posting key can only be entered for an account type which is permitted for that account type.
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SAP Standard Reports Overview
FBL5N – Customer Line Item Display (different sorts / line layouts)
List of open customer line items
Customer Due Date Forecast
Customer Payment History
Open Item Analysis by balance of overdue items
Customer List
Address List
Display Changes to Customers
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Knowledge Check
What is the dunning program?
The means by which the system can automatically send payment reminders to those customers that have overdue items.
TRUE OR FALSE? A customer invoice can only be created through the Finance module.
False! You can also create a customer sales invoice through the SAP Sales & Distribution (SD) module.
How does a tolerance group deal with an issue of a payment difference?
When you define tolerance limits via a tolerance group, you also specify how the system should post the differences.
Conclusion
End of the Day - Lessons Learned
Organization StructureMaster DataAP & AR Business ProcessesAP & AR ConfigurationSAP Standard ReportsIntegration Points
Questions?
Please complete course evaluation.
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Deloitte ECC 6.0 Sandbox Access Send an email to Business Support Exchange requesting access (username and
password) to the ECC 6.0 Global Sandbox Go to SNET SAP home page to download the latest SAP GUI front end:
http://kx.deloitteresources.com/C15/SAP/default.aspx
Contact Information for Today’s Instructors: Jessica Riley: jesriley@deloitte.com Mary-Anne Taylor: martaylor@deloitte.com Joshua Gladney: jgladney@deloitte.com Tareq Dowla: tdowla@deloitte.com Kelly Snook: ksnook@deloitte.com
Additional Information
Appendix
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Configuration - Defining Organizational Elements Client: SPRO IMG Enterprise Structure Definition Financial Accounting Define Company New Entries
Company code: SPRO IMG Enterprise Structure Definition Financial Accounting Edit, Copy, Delete, Check Company Code Copy, Delete, Check Company Code
Controlling area: SPRO IMG Enterprise Structure Definition Controlling Maintain Controlling Area > Maintain Controlling Area
Configuration – Accounts Payable and Accounts Receivable Elements Account Groups: SPRO IMG Logistics - General Business Partner Customers Control Define Account Groups and Field Selection for
Customers
Payment Program: SPRO IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Outgoing Payments Automatic Outgoing Payments Payment Method / Bank Selection for Payment Program
Payment Terms: SPRO IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Incoming Invoices/Credit Memos Maintain Terms of Payment
Define Correspondence Types: SPRO IMG Financial Accounting Financial Accounting global settings Correspondence Define Correspondence Types
Payment Blocks: SPRO IMG Financial Accounting (New) Accounts Receivable and Account Payable Business Transactions Outgoing Payments Outgoing Payments Global Settings Payment Block Reasons Define Payment block Reasons
Document Types: SPRO IMG Financial Accounting Global Settings Document Document Types
Document Number Ranges: SPRO IMG Financial Accounting Global Settings Document Document Number Ranges Define Document Number Ranges
Posting Keys: SPRO IMG Financial Accounting Global Settings Document Line Item Controls Define Posting Keys
Tax Codes: SPRO IMG Financial Accounting Financial Accounting global settings Tax on Sales / Purchases
Dunning Program: SPRO IMG Financial Accounting (New) → Accounts Receivable and Accounts Payable → Business Transactions → Dunning
Tolerance Groups: SPRO IMG Financial Accounting Account Receivable and Accounts Payable Business Transactions Incoming Payments Manual Incoming Payments
Quick Reference Guide: Configuration
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Important T-Codes in General Finance XK01, XK02, XK03 Create, Change, Display Vendor XD01, XK02,XD03 Create, Change, Display Customer FB02, FB03 Change, Display Document F110 Payment Run F150 Dunning Program FBRA Reset Cleared Items
Important T-Codes in Accounts Payable FBL1N Vendor Line Item Display FB60 Enter Invoice FB65 Enter Credit Memo
Important T-Codes in Accounts Receivable FBL5N Customer Line Item Display FB70 Enter Invoice FB75 Enter Credit Memo FBE1, FBE2, FBE3 Create, Change, Display Payment Advice
Important Transaction Codes
Real Client Business Examples
AP Day to Day
MIRO Post Purchase Order Invoices
FB60 Post AP invoices – Invoices with applicable discounts, Due date/Baseline Dates
FB65 Post Credit memos (return product or damage) – clear invoice or partial with credit memo
Payment Blocks – Third party vendor for freight invoices entered via program and automatically put on block until reconciled with vendor and block removed for payment
Payment via check – Preprinted or laser print Checks mailed in bulk or special handling, via payment method supplement Checks paid in separate currencies from separate banks
Payment via Wire – Bank data in system to automate payments
Real Client Examples – Intercompany Concept
An intercompany process refers to the posting of receivables and payables between affiliated parties and can be any of following:
Intercompany posting within the G/L using cross-company code postings e.g. cross-charges between legal entities
Intercompany posting through FI/CO posting during allocations Intercompany posting through sales order intercompany billing to the G/L for drop
shipment (e.g., an intercompany sales order where the selling company drops shipment)
Intercompany posting through stock transport purchase order for material transfer Manual invoicing between affiliated companies
The system reconciles all of these transactions
between companies during month-end.
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Supported Business Processes
Reconciliation of Open Items at key date Customer/vendor accounts with open item management Company’s within group defined as Customers and Vendors Customer and vendor master data with trading partner information
Reconciliation of GL open items GL accounts with open item management Company’s within group defined as GL accounts Trading partners assigned to GL Master records
Reconciliation of documents according to posting date Reconciliation of GL accounts (IC Revenue and Expenses) Trading partner information posted to documents posted to specific GL accounts
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Intercompany clearing – the process of clearing open intercompany receivables and payables.
Intercompany clearing can be performed via the many different methods:
Intercompany Clearing
Cash settlement
Internal settlement using
In-House Cash
Multi-lateral netting using the
Payment Program
Clearing to long-term receivable / payable account
Intercompany Reconciliation functionality only facilitates reconciliation and does not perform any clearing or payments of intercompany open items. Thus, it is necessary to perform clearing separately from the Intercompany Reconciliation tool.
It is critical that intercompany clearing only be performed on items that have already been reconciled!
To control that only reconciled intercompany is cleared, an enhancement can be used to bridge the gap between Intercompany Reconciliation and the clearing process.
Reconcile Intercompany
Clear Intercompany
Flag items as Reconciled
Enhancement
Select flagged items
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AR Business Scenarios
House bank master records
Lockbox accounts
Lockbox remit-toaddress.
Lockbox Posting parameters
Field Status group setting
Tolerance Group settings
(Optional)
Reason codes (Optional)
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Lockbox posting transaction
Procedure - Enter the processing procedure for payment processing. By default the procedure will be shown as Lockbox. This the same procedure which was defined in transaction code OBAY.
Input record format - Depending on the format supported by the bank, input format is selected which is BAI2 in our example.
Invoice number - This defines the search rule while processing the file. Search can be based on document numbers, reference document numbers or a combination of both.
The rest of the settings will be defaulted. If required, a profit center can be given as an input
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Dunning – Dunning Procedure Example
Account: Customer ABCGrace Period: 4 DaysMinimum Days in Arrears: 8 Days
Due Amt. Status
1) -6 1,500 Not Overdue2) +3 350 Within Grace Period3) +6 800 Within Min. Days in Arrears4) +10 5,400 Overdue 10 Days
Items:
Result:
Items 3 and 4 will be dunned. You will dun Customer ABC for Item 3 because there is another item that is overdue more than the minimum days in arrears. If any item exceeds that specification, all items in the Account are dunned, except for those in the grace period.
If Item 4 did not exist, then item 3 would not be dunned.
Copyright © 2011 Deloitte Development LLC. All rights reserved.
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