sap business fundamental-fico ar-ap configuration

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


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


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.


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


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!


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


Create account statements, balance confirmations and other standard letters


AR Business ProcessesProcess SalesOrder/Invoice

ReceivePayment

ProcessPayment

CreateCustomer

Send CustomerCorrespondence


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


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.


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


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.


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


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.


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


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


Accounts Payable Concepts


ManagePayables

GeneratePayments


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.


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


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


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


CreateVendor


ManagePayables

GeneratePayments


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


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


CreateVendor


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


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


Accounts Payable Concepts – Generate Payments

Payment program configuration involves determining:

ManagePayables

GeneratePayments


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!


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


CreateVendor


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.


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


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


There are certain basic activities within the Accounts Receivable processes.

Accounts Receivable Concepts

Process SalesOrder/Invoice

ReceivePayment

ProcessPayment

CreateCustomer


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.


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!


ReceivePayment

ProcessPayment

CreateCustomer



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!


ReceivePayment

ProcessPayment

CreateCustomer



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!


ReceivePayment

ProcessPayment

CreateCustomer



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.


ReceivePayment

ProcessPayment

CreateCustomer



Accounts Receivable Concepts – Receive Payment


ReceivePayment

ProcessPayment

CreateCustomer


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.


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


ReceivePayment

ProcessPayment

CreateCustomer


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


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.


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


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.


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: [email protected] Mary-Anne Taylor: [email protected] Joshua Gladney: [email protected] Tareq Dowla: [email protected] Kelly Snook: [email protected]

Additional Information

mailto:[email protected]

http://kx.deloitteresources.com/C15/SAP/default.aspx






Appendix


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


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.

http://www.canstockphoto.com/file_view.php?id=2259039


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

http://www.canstockphoto.com/file_view.php?id=3790137


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


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)


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


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.

sap business fundamental-fico ar-ap configuration

Documents