SAP FI

Accounts Payable
Table of contents

 AP Overview
 Sub Processes
Master Data
Invoice Processing
Payments / Disbursements
Account Analysis / Reconciliation
Periodic Processing
Reporting
SAP Modules - Overview

SD FI
Sales & Financial
Distribution Accounting

MM CO
Materials Controlling
Mgmt.
PP AM
Product Fixed Asset
Planning Mgmt.

QM
SAP PS
Quality
Mgmt. R/3 Project
System
PM OC
Plant Maint. Office &
Comm.
HR IS
Human Industry
Resources Solutions
 FI – Financial Accounting
Modules
FI - Financial Accounting Modules

General Ledger

Special Ledger
Accounts Receivable

Legal Accounts Payable

Consolidation
LC FI
Travel TM
Management Cash Management

Asset and Investment

Management
Accounts Payable Process
Overview

Financial  Process decompositions are

Accountin
g the starting point for process
documentation.
 They summarise what is
involved in a the AP process
at a high level
Accounts
Payable

Master Invoice Payments Account Periodi Reporti

Data Process / Analysis c ng
ing Disburse & Process
•Sundry ments Reconcili ing
•Logisti ation
cs
Master Data

 Maintenance
• Creation 3 Levels
• General Data (name, address)
• Company Data (reconciliation acct, payment
term)
• Purchasing Data (PO currency, incoterms)
• Change
• Block
• Delete
 Account Groups
 Intercompany
 One-time vendors
Master Data: Structure

Client  General data

230 • Address
• Control data Vendor
• Payment Master
Transactions

Comp
 Company Code
any data
Code • Account
9100 A Management
Ltd. • Payment
Transactions
• Correspondence

Purchasing
Organization:  Purchasing
9100 A Organization
Purch.Org.
• Purchasing Data
• Partner functions
Master Data: Account Groups

Local Groups
Vendors Implemented

GEV

OTV

AFV
One-Time
Vendor
0005

Foreign
Vendors
SWV
Master Data: Number Ranges

Groups
Implemented Number
Ranges

GEV 01 0000100000
0005 0000299999

02 0000300000
OTV 0000399999

03 0000400000
AFV 0000499999

ZZ 1000000000
SWV 1999999999
Master Data: Blocking a Vendor

 Vendor
master record
can be
blocked in the
following
areas:
• Posting
block,
• Purchasing
block
 In addition
user may
specify
reason for
blocking
Master Data: Mark for Deletion

 All data in this

master record is
to be deleted.
 Deletion is done
by archiving
program,
provided that
there is no
dependent data
on vendor
account.
Master Data: Intercompany
Master Data: One-time Vendor

 We use One-time
Vendor 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
Accounts Payable Process
Overview

Financial  Process decompositions are

Accountin
g the starting point for process
documentation.
 They summarise what is
involved in a the AP process
at a high level
Accounts
Payable

Master Invoice Payments Account Periodi Reporti

Data Process / Analysis c ng
ing Disburse & Process
•Sundry ments Reconcili ing
•Logisti ation
cs
Invoice Processing

Business Transactions included in Process:

 Sundry
• Invoice
• Credit Memo
• Down Payment (Special G/L)
• Foreign Currency
• Cancel/Reverse Document
• Inter-company (Idoc’s)
Document Entry – Basic Data

Enter company
code

Screen
Tab

 All required data on one screen,

 A user can use “tabs” to switch between
sub-screens
 Posting a document

O
R

Docume
nt
Simulati
on
Parked doc. vs. Held doc.

 Park document:
• Assigned number
(according to document
type)
• Available for many users
(depending on
authorizations in the
system)

 Held document:
• Internal document
number (defined by the
user)
• Available only for the user
who created it.
Processing of Parked
Documents
Save the
document

 The parked
document
may be:
 Posted,
 Edited,
 Saved as Edit your
complete document
d,
 Deleted.
Special GL Transactions:
Definition

Special GL
Indicator

Vendors’
reconciliation Accounts
accounts defined for
Special GL
Transactions

 Special GL Transactions allow the user to post the

document to an alternative GL account instead of
“normal” Vendor reconciliation account,
 They are defined in Customizing for Vendor and
Customer reconciliation accounts,
 Customer / Vendor account balances are not affected.
Posting a Down Payment

Vendor GL
Accoun Bank Down
t Accoun Paymen
t ts
1 1 10
10
10

 A Ltd pays the vendor a down-payment: $10.000,-

 The down payment is booked on Vendor account with
a Special GL indicator
 The amount of $10.000,- is shown on Vendor account,
but on different GL Account, instead of Vendor
reconciliation account
Display of Special GL
Transactions

Transaction
code: FBL1N -
Line item
Display

 To display the transaction posted with Special GL

Indicator, mark the relevant field on the “Line
items display” screen.
 “Dynamic selections” may be used to search for
different GL indicators.
Posting in Foreign Currency

 For every Company Code there’s defined a

company code currency,
 Every document, posted in different currency
than CC currency, is processed as a foreign
currency document.
Posting in Foreign Currency (2)

Document header Exchange rates

Currency/rate USD 43.5

Amount 1,000
Translation date 08.15.05 USD INR 43.60
09.30.05
09.30.05 USD INR 43.50

Line items

Amount FC: 1,000.00

USD
Amount LC:
43500 INR
Posting in Foreign Currency (3)

1.

2.

3.

1. Exchange rate can be entered manually,

2. Or derived from “Exchange Rates Table”
3. System automatically translates the
foreign currency into CC currency.
 Reverse an AP document

Document entered
incorrectly
Balance sheet
Assets

Liabilities
Document corrected by
Reversal:
Shared equity Reverse with a
standard reversal
posting
Reverse with a
negative posting

Document re-entered
correctly
Mass Reversal of Documents

Mass
Reversal
Procedure

 Many documents may be reversed at the same time,

 Process may be scheduled to be performed in the
background.
Inter-company Processing

Inter-coy Billing
AR header Invoice (IV)
reference SD Document
= 2000002244 A Ltd

AP header
reference HDR Ref:
2000002244
AP

AR
Inter-coy Billing
Invoice (IV)
SD Document
1000001144 A1 Ltd
F110

HDR Ref: FI Document

1000001144 3000015244
AP
HDR Ref:
2000002244

AR

A2 Ltd F110
FI Document
2000006344
AR header
HDR Ref: reference
1000001144 =
AP header
reference
Invoice Processing continued…

Business Transactions included in Process:

 Logistics
• Invoice Receipt
• Overview
• Subsequent DR’s / CR’s
• Delivery Costs (Planned / Unplanned)
• Credit Memo
• Evaluated Receipt Settlement (ERS)
• Consignment / Pipeline Settlement
Procurement Cycle

Purchase
requisition

8 1
Payment Determinati
processi on
Invoice ng of reqmts.

Purchase Quotation
order
10
10
720 2 20
Invoice Source
verificati determinati
on on

Good
s 6 3 Vendor
recei selecti
pt on
Purchase
order
10
PO20
PO processi
monitori
5 4 ng
ng
Accounting Entries

Cost Element Object GR/IR Acc. Payable

1. 2. 1. 3. 2.

Bank Clearing AccountBank

1. Goods received.

2. Invoice received. 4. 3. 4.

3. Vendor paid.

4. Bank account credited/charged

Invoice Verification (Three Way
Matching)

Master data

Invoice Invoice
verification docum
ent Paym
Invoice ent
progr
am

Check Discrepancies

Purch Goods
ase receipt
order
 Display Purchase Order

 Purchase orders are the actual requests

for a vendor or a plant within A Ltd. to
deliver materials and or services based
on predefined agreements (e.g. contract
or quotation). Use TCode ME23N to
display PO.
Purchase
Purchase
Requisitio
Purchase
nRequisitio
Purchase
nRequisitio Purchase
Purchase
10 nRequisitio
Purchase Order
10 nRequisitio
20
10 nRequisitio
20
30 10 n
20 10
30 10
20
30 10 20
20
30
20
30
30 Vendor
30

Source
Assignment
A Vendor Invoice

 The user must enter the following

data:
• document date, purchase order
number
• invoiced amount, terms of payment (if
necessary)
 The following items are copied
from the purchase order:
• vendor, terms of payment, invoice
items
 The following items are transferred
from the purchase order history:
• quantity, amount
• account determination.
 The bank information is stored in
the vendor master record.
Parking a Vendor Invoice

 You can park or hold an invoice before posting it.

When you save the document, the system
creates an unposted document that only contains
the data on the initial screen such as the gross
invoice amount, tax amount, terms of payment
and allocation, but no item data.
 Later you can use the “Invoice overview” function
to change and post the parked / held document
Subsequent Debit / Credit

1 Invoice
for PO
100 pcs - 300
456 INR
100 pcs
300 INR

2 Invoice
PO History

for PO
456 150 pcs - 450
50 pcs 150 INR
INR

3 Invoice
for PO
456
Subsequent 150 pcs - 480
costs
50 pcs 30 INR
INR
Subsequent Debit / Credit -
Posting Rules
 When you post a subsequent debit/credit, the
invoice amount is posted to the vendor account.
 If the quantity to be subsequently debited or credited
has already been delivered, the system makes the
offsetting entry to the stock account or the price
difference account, depending on the type of price
control used. For purchase order items with account
assignment, the system makes the offsetting entry to
the cost account.
 If the quantity to be subsequently debited or credited
has not yet been delivered, the R/3 System makes
the posting to the GR/IR clearing account. When
you post the goods receipt, the system debits/credits
the stock account or the price difference account,
depending on the price control used. (Note:
Generally always GR based IV followed)
Delivery Costs

Purchas Purchas
e order e order
123 456
100 pcs 10 100 pcs 10
INR INR
Freight 1 Freight -
INR/pc
Delivery
costs

Unplanned costs
Delivery
100 pcs 100 pcs
1000 INR 1000 INR
Freight 100 Freight 100
INR INR

Total: 1100 Total: 1100

INR INR

 Delivery costs can be

divided into:
• Planned delivery costs
• Unplanned delivery costs
Planned Delivery Costs -
Postings
Invoice with
reference to the
PO

MIRO

Accounting
Document

 For planned delivery costs, the postings are made to

a clearing account at goods receipt. There are
separate accounts for costs of different origins.
 If the delivery costs in the invoice differ from the
planned delivery costs, the differences are posted in
the same way as for normal price and quantity
variances.
Unplanned Delivery Costs -
Postings

MIRO

Accounting
Document
Credit Memo

Purchas
e order
123 Credit
Memo
100 pcs 10
INR/pc 80 pcs 800 30 pcs 300
INR INR

Goods Receipt:
50 pcs

Purchas
e order Subsequen
123 t Credit

100 pcs 10
INR/pc 50 pcs 800 50 pcs 300
INR INR
Evaluated Receipt Settlement

 In Evaluated Receipt Settlement (ERS),

goods receipts are settled (posted) directly
without the vendor having to issue an
invoice.
 To generate vendor invoice the system
uses information from the purchase order
and the goods receipt.
 The following prerequisites must be met to
use ERS functionality:
• The goods receipt must refer to a purchase
order.
• Goods-receipt-based Invoice Verification must
be defined for the purchase order item.
• The order price of the materials may not be an
estimated price
• The Vendor master record must be flagged as
being subject to ERS.
Evaluated Receipt Settlement
(2)

Purchase
Order Goods Vendor
Receipt Invoice

Purchas
e Order

10
20
30

 Goods receipts are settled automatically.

 The system posts the invoice document
automatically on the basis of the data in the
purchase order and goods receipts.
 This way you can eliminate invoice
variances.
Pipeline Settlement

Bill of Goods Vendor

Materials Receipts Invoice

PIPE PIPE Dt
Material Material Accruals

10 10
Ct
20 20 Vendor
30 30

 A Ltd. have pipeline materials as part of

their Bill of Material,
 There’s no invoice from the vendor for
goods withdrawals,
 Instead, A Ltd. will settle posted
withdrawals, issue a statement of the
settlement and send it the vendor.
Accounts Payable Process
Overview

Financial  Process decompositions are

Accountin
g the starting point for process
documentation.
 They summarise what is
involved in a the AP process
at a high level
Accounts
Payable

Master Invoice Payments Account Periodi Reporti

Data Process / Analysis c ng
ing Disburse & Process
•Sundry ments Reconcili ing
•Logisti ation
cs
Payments / Disbursements

Business Transactions included in Process:

 Manual payments
 Automatic Payment Run
 Outgoing Payments
• Reports
 Inter-company Payments
• IDoc’s (REMADV)
Manual outgoing payment

Open items

 This transaction is being used to post vendor

outgoing payments that have not been cleared
by the automatic payment program,
 All data on one screen, no posting keys required.
 Automated Outgoing Pay.-
Activity Flow
Invoices, Credit
Memos,
Payment Automatic Create Pay. Run &
Yes Schedule
Requests Payment Run maintain
Proposal
No Parameters

Post Outgoing Proposal

Payment With List
Printout

Checks /
Transfer Edit Proposal
Approval

Send transfers Propos

to Banks and/or al
checks to Approv
Vendors al

Schedule
Payment

Print Payment
Medium
Automatic Payment Process

Invoices
or
payment
requests
are
entered
Payment
Open invoices are
documents
analysed
are printed

Invoices are
Invoices are paid proposed for
payment

Payments are Payments are

approved modified
 Payment Program Steps

Maintain Parameters

Parameters are entered

Schedule Proposal

Payment proposals are created

Edit Proposal

Payment proposals are edited

Schedule Payments

Payment run is carried out

Schedule Printing
 Inputs to the Payment Program

Master Data Invoice

Payment
Program

Selection Parameters
Online Parameters
Maintaining Payment
Parameters

Identifies each
individual payment
run

Status of the
payment run
Payment Program Parameters
Which
company
codes are
included?

Which payment
methods?

Who’s
being paid?
When is the
next run?
Proposal List

Discount
List of Vendors Amounts
s/
included in the included in
Exceptio
run proposal
ns

Line
Items Curren
Payment cy
Method Bank
details
Exception List

 Items that cannot

be paid are
detailed on the
exception list
 Possible reasons:
• Invoice is blocked
• Invalid data in the
master record
• Invalid payment
method
• Invalid house bank
• Payment amount is
less than the
Exception minimum amount
List! specified for
Payment payment
Items • Not enough money
...
... in the house bank
per configuration
Total
Edit Payment Proposals

Payments Items Changing line items

Payment Payment Line Item 1
Payment Items
Payment Payment block
Method Item 1
Payment
Payment Discount
House Item 2
Method
Payment
Bank
Payment Item 3
House
Amount
Method
Payment
Bank
Payment ...
...
House
Amount
Method
Payment Reallocate
Bank
Payment
...
House
Amount
Method
Payment
Bank
Payment
...
House
Amount
Method
Payment
Bank
Payment Change payment
...
House Create new
Amount
Method
Account
Bank payment or Line Item 1
...
House
Amount
Amount allocate item to
Bank Payment method
... existing
Amount Method
Payment
... payment House Bank
House Bank
Due Date
...
Schedule Proposals

Choose this option

Schedule a - OR
to start
start time -
immediately
 Payment Runs

Clear paid open

items

Post payments to Post related postings

general ledger for tax, discounts

Payment
Run

Post related postings

Supply print program
for exchange rate
with necessary data
differences
Printing Schedule - Checks

 AP Department employee
creates and posts payment
run,
 Checks & payment advices
are printed

Enter
Variant &
print
checks
Print Program - Bank Transfer

AP Department employee

creates and posts payment run,
Payment files & payment
advices are generated / printed

Enter
variant
Print Program - Bank Transfer

1. AP clerk
creates and
posts
payment run,
2. AP manager
creates
electronic
payment
documents
3. Data is
downloaded
to a local file.

Create a local file - electronic pay.

medium
Payment Program - Reports

List of Spool
Requests

 Payment program generates several

different outputs (like DME files, error logs,
payment proposal list, payment settlement
list etc.)
 You can access those reports directly from
Payment program menus or from AP/AR
information system.
 Some of the reports payment program
generates automatically and you can
access them from the spool (transaction
SP02 or SP01).
Payment Run - Print a List

Choose the relevant

function from the
main menu

Payment Settlement
List
Accounts Payable Process
Overview

Financial  Process decompositions are

Accountin
g the starting point for process
documentation.
 They summarise what is
involved in a the AP process
at a high level
Accounts
Payable

Master Invoice Payments Account Periodi Reporti

Data Process / Analysis c ng
ing Disburse & Process
•Sundry ments Reconcili ing
•Logisti ation
cs
Account Analysis /
Reconciliation
Business Transactions included in Process:
Accounts Balance
•Line Item display

Account Clearing
•Internal Post with Clearing
•Clearing with Customer
Display Account Balance

 Account balance displays totals of transactions,

per month as well as cumulative values
 The report may be printed or saved as a local file
Display Account Line items

 “Line items” report displays particular

transactions,
 It it possible to change the documents directly
from this screen,
 The report may be printed or saved as a local file
Open Item Clearing

2 1
Open item Januar
Febru account
1 2 ary
34567 1 2 3y4 5 6 7

8 91011121314 2,0 5,0 8 91011121314

16171819202122 00 00 16171819202122
3,000
23242526272829 23242526272829

293031 293031

Invoice Goods receipt

Can be
cleared

3
Clearing
Post with
an
clearing
account
Clearing Open Items Manually

1 Invoice 1000
2 Credit memo 1000

?
Clearing account

1 1000 1000 2
Automatic Clearing Program

Accounts

xxxxxx xxxxxx xxxxxx xxxxxx

--
-- --
-- --
-- --
-- --
-- --
-- --
-- --
--
--
-- --
-- --
-- --
-- --
-- --
-- --
-- --
--
--
-- --
-- --
-- --
-- --
-- --
-- --
-- --
--
--
-- --
-- --
-- --
-- --
-- --
-- --
-- --
--
--
-- --
-- --
-- --
-- --
-- --
-- --
-- --
--

Automatic
clearing
program

Recon acc. 160000 Recon acc. 160100

Clearin Clearin
g
Ref no. Amount docume
Ref no. Amount g
docume
nt nt
5287 5000 - 16978 1500 -
5287 7000 - 16978 3200 -
5287 12000 + 16978 4700 +

Ref no. Amount Clearin Ref no. Amount

Clearin
g g
425 2500 - docume 9624 7500 -
docume
nt nt
425 2500+ 9624 7500+
The Clearing Document

Open Item Account

40000
10000
Clearin
50000 20000 g
docume
nt

Amounts can be
cleared
Clearing: Vendor and Customer

1 Customer invoice 46,000

2 Vendor invoice 20,000
3 Customer payment 26,000

Customer ABC Inc. Vendor ABC Inc.

1 46,000 46,000 3 3 20,000 20,000 2

Bank

3 26,000
Reversal of Clearing

Display of cleared items

Reversal of clearing

 Reversal of documents that have been cleared

before is not possible,
 First the clearing operation must be reset and
then you can reverse a document.
Accounts Payable Process
Overview

Financial  Process decompositions are

Accountin
g the starting point for process
documentation.
 They summarise what is
involved in a the AP process
at a high level
Accounts
Payable

Master Invoice Payments Account Periodi Reporti

Data Process / Analysis c ng
ing Disburse & Process
•Sundry ments Reconcili ing
•Logisti ation
cs
Periodic Processing

Business Transactions included in Process:

LIV invoice variances
•Invoice differences
•Blocked invoices
•Tolerances (not configured)
GR/IR Account Maintenance
Vendor Correspondence
•Standard Letters
•Balance Confirmation
Invoice Variances (AP-MM
integration)

Quantity

Price
Goods Vendor
Receipt Purchase Invoice
order price
quantity

Date

 The system carries out the following checks

for each invoice item:
• Quantity variance
• Price variance
• Purchase order price quantity variance
• Date variance
 GR/IR Account Movements

Purchas Good Invoice

e order s
Recei
pt
97 pcs
100 pcs 100 pcs @ 10.00 USD
@ 10.00 USD

GR / IR
Goods Invoi
Account
Receipt ce
Maintenance

Stock 1,000 30 -
account +
GR / IR 1,000 970 + 30 +
account -
Vendor 970 -
Account
 GR/IR Quantity Variances

Invoice
Purchas Good
e order s
Recei 80 pcs
pt @ 10.00 USD
100 pcs 50 pcs
@ 10.00 USD
Good
s
Recei
pt
30 pcs

 The GR/IR clearing account is cleared for a purchase order

item when the delivered quantity and the invoice quantity
are the same.
 In this example the invoice quantity is greater than the
delivered quantity, the system expects another goods
receipt.
 GR/IR Quantity Variances (2)

Invoice
#1
Purchas Good
e order s
Recei 97 pcs
pt @ 10.00 USD
100 pcs 100 pcs
@ 10.00 USD
Invoice
#2

3 pcs
@ 10.00 USD

 In this example the delivered quantity is greater than

the invoice quantity, the system expects another
invoice.
 Any differences in the GR/IR clearing account must be
cleared. If the differences are not cleared by another
goods receipt (or a return delivery) or by an invoice (or
a credit memo), the GR/IR clearing account must be
maintained manually.
Releasing Blocked Invoices

 An invoice is blocked for payment when

you post it, because the Payment block
indicator is selected in the vendor line item
of the invoice document. Financial
Accounting is then unable to pay the
invoice.
 A blocked invoice can be released for
payment in a separate step. This deletes
the payment block.
 An invoice is also blocked when the
variance between goods receipt and an
invoice exceeds tolerance limits.
 The invoice will not be blocked if the
variance is within certain tolerance limits.
Releasing Blocked Invoices (2)

Make
selection

Define
processing

Automatic Manual
release release

 The blocked invoices can be released.

 In the time between the blocking and
releasing of an invoice, the cash discount
period could expire. When you release an
invoice, you have the opportunity to change
the baseline date for payment.
 You can define whether you want to release
the invoices manually or automatically via
the field Automatic release.
Tolerances

 In every company code there defined tolerances for:

• Quantity variance
• Price variance
• Purchase order price quantity variance
• Date variance
 In the case of quantity variance the system checks
purchase order price vs. quantity variance (the
greater the purchase order price, the lower the
tolerated quantity variance)
 In the case of schedule variance the system checks
invoice value vs. days variance (the greater the
invoice value, the lower the tolerated schedule
variance).
Requesting Correspondence

Correspondence request

Mass request Individual Individual

selection request request
program manual automatic
Periodic account statement

Internal documents

Open item list

Standard letter

Bill of exchange
Account statement settlement

Individual
corresponde Payment notice
nce

Corre-
spond
-ence
reque
sts

Trigger report

Print programs
Balance confirmation

Letter to the
Vendor
Vendor Reply
to the Sender
200.00
-
Open items

354.00
126.20
-
…….

 This function enables you to create and

print letters to the Vendors for checking the
open items.
 System prints also a necessary reply form,
so a Vendor can confirm the outstanding
items or specify the differences.
Correspondence: Output Type

Printer

Email
Fax
Accounts Payable Process
Overview

Financial  Process decompositions are

Accountin
g the starting point for process
documentation.
 They summarise what is
involved in a the AP process
at a high level
Accounts
Payable

Master Invoice Payments Account Month Reporti

Data Process / Analysis End ng
ing Disburse & Process
•Sundry ments Reconcili ing
•Logisti ation
cs
Reporting

Business Transactions included in Process:

Standard Reports
•Open Items List
•Cleared Items List
•Account List
•Account Balance List
•Vendor Evaluations
Customised Reports
•Aged Open Items List
Accessing Reports

SAP Menu

Transaction
SA38

 A user can run the required report in two

ways:
• Directly from “The Report Tree”,
• Using transaction SA38, provided that he/she
knows the report’s name
Report Variant

1) Enter the
2 required criteria
on the selection
screen

1
2) Click “Save”
button

3) Enter the
3 variant’s name
Report Execution

Report
Execution

Selection of Report
Parameters

Dynamic
Variant Selection
selection

 A report can be executed directly or

scheduled in the background
Accounts Payable Evaluations

Evaluation
Views
- Corporate

Variable
group
- Company
code
- Business
Area
Due date analysis

Currency analysis

Overdue items

Evaluation types