Account Receivable

 Account Receivable deals with Customer Activities and controls all customer
accounting data.
 The AR process starts when a company sells a good or service and includes payment
terms, discounts or credit guidelines in an invoice to the customer. When payments
arrive, receipts need to be returned and the payment needs to be recorded.
 All postings in Accounts Receivable are recorded directly in the General Ledger.
 Different G/L accounts are updated based on the transaction like receivables
(Customer Invoice), Customer Payment, down payments, bills of exchange, Customer
Approval etc., involved.
 Account Receivable is similar configuration of Account Payable in SAP

For Accounts Receivable technicians, the following T-codes are

FB70 Post Customer Invoice in Single Screen

F-28 Customer invoice posting in Double Screen
FB75 Customer Credit memo posting in Single Screen
F-41 Customer Credit memo posting in Double Screen
F-53 Customer outgoing Payment
FD01 Create Customer Master Data
 What are the steps involved Account Receivable in SAP

1. Define Account Group with Screen Layout(Customer) OBD2

2. Create Number Ranges for Customer Accounts XDN1
3. Assign Number Ranges to Customer Account Groups OBAR
4. Define Tolerance (Customer) OBA3
5. Define Document types for Entry View OBA7
6. Define Document types for Entry View In a Ledger
7. Define Document types for General Ledger View In a Ledger
8. Define Document Number Ranges for Entry View In a Ledger
9. Define Document Number Ranges for General Ledger View In a
Ledger
10.Create Customer Reconciliation GL Account FS00
11.Create Customer Master data FD01

Configurations for Account Receivable in IMG Screen SAP

1. Define Accounts Groups with Screen Layout(Customer) OBD2

SPRO--> Financial Accounting (New) --> Accounts Receivable and Accounts Payable --> Customer
Accounts --> Master Data --> Preparations for Creating Customer Master Data --> Define Account
Groups with Screen Layout (Customers)
A Customer account group is a classifying feature of customer master records
in SAP ERP. It determines the following:
 Interval from which a unique number is assigned to a vendor
 Whether the number is assigned by the user (external number
assignment) or by the system (internal number assignment)
Creation of Customer Group:

For IMDC - IM Domestic Customers

The below fields keep it as mandatory, While creating Reconciliation GL accounts in FS00 for these
account group, These fields are mandatory to enter
Go Back and Select Payment Transaction

Similar way we have to create a Domestic, Foreign, Service, Inventory, One time Customers

For Foreign Customer

For Inventory Customer

For Service Customers

One Time Customer

 Account groups created for Account Receivable in SAP

2. Create Number Ranges for Customer Accounts XDN1

SPRO--> Financial Accounting (New) --> Accounts Receivable and Accounts Payable --> Customer
Accounts --> Master Data --> Preparations for Creating Customer Master Data -->Create Number
Ranges for Customer Accounts

 A number interval from which the account number for the Customer accounts is to be
selected.
 The type of number assignments (Internal/ External).

Here Define Number Ranges for customer Account groups (Domestic, Foreign, onetime, Service,
Inventory customer)
 3. Assign Number Ranges to Customer Groups OBAE
SPRO--> Financial Accounting (New) --> Accounts Receivable and Accounts Payable --> Customer
Accounts --> Master Data --> Preparations for Creating Customer Master Data --> Assign Number
Ranges to Customer Account Groups

 Assign one number ranges to one or more Customer account groups in SAP as per
organization requirements. Based on the number range assignment, the unique
number is assigned to a Customer account

 Here Assign Number Ranges to customer Account groups (Domestic, Foreign, onetime,
Service, Inventory customer)

4. Define Tolerance (Vendors) OBA3

SPRO --> Financial Accounting (New) --> Accounts Receivable and Accounts Payable --> Business
Transactions --> Outgoing Payments --> Manual Outgoing Payments --> Define Tolerances (Vendors)

 Tolerance group enables the users to process transaction with the payment
difference of gain or loss that defined as per tolerance group for customers and
vendors in SAP.

Creation of Vendor Tolerance for Company Code IM10

Creation of Customer Tolerance for Company Code IM20

 On new entries customer and vendor tolerances screen, update the following
details.
1. Company Code: – Update the company code for which you would like to define tolerance
groups.
2. Tolerance group: – It is not required to update the tolerance group key, just update the
description text of tolerance group.
3. Permitted payment difference: – Update the payment differences of gain & loss with
amount and percentage i.e 10 percentage and 1.

5. Define Document Types for Entry View OBA7 Already available

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document -->
Document Types -->Define Document Types for Entry View (Already Existed.... No need to
create)

Document Number range Document type Description

Type already exists in
SAP
DA 12 Customer Document
DG 16 Customer Credit Memo
DR 18 Customer Invoice
DZ 14 Customer Payment

The document type is a key that is used to classify accounting documents and distinguish
between business transactions to be posted. The document type is entered in the document
header and applies to the whole document.

The document type has the following purposes:

  Differentiating between business transactions. Since the document type is shown for
every line item, you can always tell what type of business transaction is involved. You
can also use the document type for evaluation purposes.
 Controlling the posting to account types (vendor, customer, or G/L accounts). The
document type determines which account types that particular document can be
posted to.
 Assigning document numbers. A number range is assigned to every document type.
The original documents from one number range should be stored together.

DZ Customer payment

DG Customer credit memo

DN Customer net invoice and credit memo

DR Customer invoice

6. Define Document Types for Entry View in a Ledger

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document -->
Define Document Types for Entry View in a Ledger

Define separate document types for documents in the entry view for those ledgers that are
used as the representative ledger in a ledger group.
 7. Define Document Types for General Ledger View in a Ledger
SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document --
>Define Document Types for General Ledger View

Here For Account standard types (IAS, US-GAAP ,IFRS ) maintained customer Document
types

 For the leading ledger, the document in the entry view corresponds to the
document in the general ledger view. Consequently, need to define separate
document types for documents in the general ledger view.

 For non-leading ledgers , you only need to define separate document types for
documents in the general ledger view if the fiscal year variant of the non-leading
ledger differs from the fiscal year variant of the leading ledger in a given company
code.
 8. Define Document Number Ranges for Entry View FBN1
SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document --
>Document Number Ranges --> Documents in Entry View--> Define Document Number Ranges for
Entry View
DA 12 2022 1200000000 1209999999
DZ 14 2022 1400000000 1409999999
DG 16 2022 1600000000 1609999999
DR 18 2022 1800000000 1809999999

9. Define Document Number Ranges for General Ledger View

SPRO --> Financial Accounting (New) --> Financial Accounting Global Settings (New) --> Document -->
Document Number Ranges --> Documents in General Ledger View --> Define Document Number
Ranges for General Ledger View
10. Create Customer Reconciliation GL Account FS00
SAP Menu--> Accounting--> Financial Accounting--> General Ledger--> Master Records--> GL
Accounts --> Individual Processing--> Centrally

A reconciliation account in every Customer master record. Settings made

in a reconciliation account also affect the customer accounts:

 Use the reconciliation account to configure the screens for posting

items to vendor accounts. Using the reconciliation account could, for
example, hide the fields for exchange rate hedges if these types of
transaction are not made. For more information, see the documentation
on Document Posting .

 Use the reconciliation account to specify which currencies can use in

posting to the corresponding Customer accounts

Creation of "Domestic Customer A/c"

Creation of "Foreign Customer A/c" Copy form 230000
Creation of "Inventory Customer A/c" Copy form 230000

Creation of "Service Customer A/c" Copy form 230000

Creation of "One time Customer A/c" Copy form 230000

One time Customer

 We use One-time Customer's Master Record to avoid large number of unnecessary master
data
 Every time we enter a business transaction, the systems stores the specific Master Data
information separately in the document
 The Accounts are created Under Sundry Debtor Account Group

For Creation Customer data and Accounting entry postings are 2 types

1. Master Data
2. Transactional Data

 In the SAP System, all business transactions are posted to and managed in accounts. Master
record must be created for each account that require. The master record contains data that
controls how business transactions are recorded and processed by the system.
 It includes all the information about a customer that requires the information to do business
with him. Both accounting (FI-AR) and sales (SD) departments in the organization use
customer master records.
 The customer master data stored centrally enables the data accessed by the organization.
Storing data centrally avoids need of entering the information twice and inconsistencies in it.
1. Create Customer Master - Pavan & Co FD01
Enter all details and click on SAVE button

Change Customer FD02

After creation of customer, weather need to change all details go to FD02

 Changes are reflected, see the display changes FD03

Block Customer FD05

 A customer account can be blocked in Accounts Receivable so that postings are no longer
made to that account. The customer account should be blocked before customer master
record marking for deletion

Checking of Blocked Customer for Posting of Invoice FB70

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable --> Document Entry -->
Invoice
Un-Block Customer FD05
SAP Menu -->Accounting -->Financial Accounting -->Accounts Receivable -->Master Records--
>Block/Unblock

Account Receivable Postings

1. Post Customer Invoice in Single Screen FB70

2. Customer invoice posting in Double Screen F-22
3. Customer Credit memo posting in Single Screen FB75
4. Customer Credit memo posting in Double Screen F-27
5. Customer outgoing Payment F-28
 Journal Entry - Accounts Receivable
Commission Received from the customer Pavan &CO
Customer Invoice

Pavan &Co A/C Dr 100000

To Commissin Received A/C Cr 100000

Customer Payment
Cash A/C Dr 75000

To Pavan &Co A/C Cr 75000

Customer not paying the amount

this case
Customer Credit Memo

Commission received A/C Dr 25000

To Pavan &Co A/C Cr 25000

Commission Received from the customer Pavan &CO

Enter the transaction FB70 in the SAP commander field

Enter Customer, GL Account, Amount and all Required fields in

this screen

Then Click on Simulate button

Click on Save button. Document will be created

2. Customer Payment F-28
SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable --> Document Entry -->
Incoming Payments
3. Customer Line Item Report : FBL5N
SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable -->Account-->
Display/Change Line Items

4. Customer Credit Memo FB75

SAP Menu --> Accounting --> Financial Accounting --> Accounts Receivable --> Document Entry --
>Credit Memo

5. Customer Line Item Report : FBL5N

SAP Menu --> Accounting --> Financial Accounting -->Accounts Receivable-->Account -->
Display/Change Line Items