ACCOUNTS PAYABLE

What does SAP

stand for?
SAP stands for Systems, Applications, and
Products in data processing.

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 What is SAP?
 It is a business software package
designed to integrate all areas of a
business.
 It provides end-to-end solutions for financials,
manufacturing, logistics, distribution, etc.
 All business processes are executed in one SAP
system and sharing common information with
everyone.

What is SAP S/4 HANA?

In the year 2010, a new version of SAP Hana has
been released. SAP Hana (High-Performance
Analytic Application) is a memory computing
database. The latest version of Hana is SAP S4
Hana 2021.

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 What is SAP FICO?
SAP FICO Stands for FI (Financial Accounting) and CO
(Controlling).
The ‘FI (Financial Accounting)’ records, collects, and processes financial transactions or
information on a real-time basis to provide the necessary inputs for external (statutory)
reporting purposes. SAP CO plays an important role for the management decision-making
purpose and for the internal reporting purpose.

Types of Projects in SAP

The different types of projects in SAP that are involved are: -
1) Implementation / Development Project
2) Support & Maintenance Project
3) Roll Out Project
4) Upgradation Project/ Migration Project
5) Enhancement Project

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 Types of Modules in SAP

 FI – Financial Accounting
 CO – Controlling
 AA - Asset Accounting
 SD – Sales & Distribution
 MM – Material Management
 PP – Production Planning
 QM – Quality Management
 PM – Plant Maintenance
 PS – Project Systems
 HR – Human Resources
 WR – Warehouse Management
 CRM – Customer Relationship
Management

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 DRONE VIEW OF PROJECT

ONE CREATE VENDOR ACCOUNT GROUPS

TWO CREATE NUMBER RANGES FOR VENDOR ACCOUNTS
THREE ASSIGN THE NUMBER RANGES TO VENDOR ACOUNT GROUPS
FOUR CREATE SUNDRY CREDITORS ACCOUNT
FIVE DEFINE TOLERANCES GROUP FOR VENDORS
SIX VENDOR PAYMENT TERMS
SEVEN CREATE VENDOR MASTER DATA
EIGHT AUTOMATIC PAYMENT PROGRAM

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 ONE - CREATE VENDOR ACCOUNT GROUPS

IMG MENU PATH

IMG > FINANCIAL ACCOUNTING –> ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE –> VENDOR
ACCOUNTS –> MASTER DATA –> PREPARATION FOR CREATING VENDOR MASTER DATA –> DEFINE
ACCOUNT GROUPS WITH SCREEN LAYOUT (VENDORS).

TRANSACTION CODE
OBD3

CONFIGURATION

GROUP NAME
A001 DOMESTIC VENDORS
A002 IMPORT VENDORS
A003 ONE TIME VENDORS

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 STEP - 1
First Select New entries to create a new vendor account group

STEP - 2
Then Update the following data
 Account Group: - Enter four digits Vendor Account group code
 Description: – Enter the name of the Vendor account group.

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Select Company code data under field status and select Account management under a group.

STEP –3

Select Save Icon to save the configured

settings. Create Vendor account groups
for A001, A002, A003.
Select Reconciliation account as required entry Thus, Vendor account groups are successfully
configured in the SAP system.

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 TWO - CREATE NUMBER RANGES FOR VENDOR ACCOUNTS
 After creation of vendor account groups, the next is maintaining number range intervals for vendor accounts in SAP. The
Vendor account number range intervals can be maintained with internal assignment or external assignment.
 Internal assignment enables the system generate the vendor account automatically during creation of vendor accounts in
SAP.
 External assignment enables the user to assign the vendor account number during creation of accounts.

IMG MENU PATH

IMG > FINANCIAL ACCOUNTING –> ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE –> VENDOR ACCOUNTS
–> MASTER DATA –> PREPARATION FOR CREATING VENDOR MASTER DATA –> CREATE NUMBER RANGES FOR
VENDOR ACCOUNT
TRANSACTION CODE
XKN1

STEP – 1
Select Change interval for creating number ranges for Vendor accounts

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 STEP – 2
Select “Insert Interval”

STEP – 3
Update the following information and Enter
1. No:- Enter NO that you want to identify the vendor accounts number range
2. From Number:- Enter from number of vendor number range
3. To number:- Enter to number of vendor number range

Ext :- Select EXT box if you want External numbering

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Select Save and ignore the warning message.
 THREE - ASSIGN THE NUMBER RANGES TO VENDOR ACOUNT GROUPS
After defining vendor account groups and number range intervals for vendor accounts in SAP, the next
configuration step is the assignment of number ranges to vendor account groups in the SAP system.
It is a mandatory configuration step when you are creating the customer accounts as per account
groups, and the system generates a number for vendor account as per this number range intervals.

IMG MENU PATH

IMG > FINANCIAL ACCOUNTING –> ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE –> VENDOR
ACCOUNTS –> MASTER DATA –> PREPARATION FOR CREATING VENDOR MASTER DATA –> ASSIGN NUMBER
RANGES TO VENDOR ACCOUNT GROUPS

TRANSACTION CODE
OBAS
STEP – 1
Select Position

Now update the vendor account group that you want to assign number ranges and press enter.

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STEP – 2
Update Number range key in the number range field

Click on the save icon to save the configured setting.

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 FOUR - CREATE SUNDRY CREDITORS ACCOUNT
IMG MENU PATH
IMG > FINANCIAL ACCOUNTING –> G/L ACCOUNTING –> GL ACCOUNTS
–> MASTER DATA–> PREPARATIONS –> GL ACCOUNT CREATION AND PROCESSING –> EDIT G/L ACCOUNT
TRANSACTION CODE
FS00
STEP – 1
In the Edit G/L Account Centrally screen, Update the following details
1. Enter G/L Account
2. Update Company Code
3. Click on Create Icon

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 STEP – 2
In the Next screen, update the following data
1. Account Group:- Update Account Group of GL Account
2. Select P&L Statement account or Balance sheet account
3. Short text: - Enter the short text of G/L
4. G/L long text: - Enter a detailed description of the GL account

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 STEP – 3
Click on Control data and update the following data.
1. Account Currency: – Update Account currency of GL Account
2. Reconciliation Account for account type: Select reconciliation account type (we are creating GL Account for Sundry
Creditors, so we selected vendors)
3. Account Management in company code: Select Appropriate Account Management i.e., open item management or
Line-item display
4. Sort Key: Update sort key

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STEP – 4

Click on Create/ Bank /Interest and enter the following data Enter the Reconciliation accounts field status group
and enter.

Click on the Save icon to save the configured GL Account

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 FIVE - DEFINE TOLERANCES GROUP FOR VENDORS
IMG MENU PATH
IMG > FINANCIAL ACCOUNTING –> ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE > BUSINESS TRANSACTIONS
> OUTGOING PAYMENTS > MANUAL OUTGOING PAYMENTS > DEFINE TOLERANCES (VENDORS)

TRANSACTION CODE
OBA3

STEP – 1
Click on “New Entries” to define tolerance group for customers and vendors.

Update the following data

1. Company code: – Enter your company code
2. Tolerance group: – Keep blank tolerance group field and update the description of tolerance
3. Permitted Payment differences: – Enter amount and percent for gain and loss i.e. 100 inr or 5% whichever is lower.
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Click on save icon to save the configured data.

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 SIX - VENDOR PAYMENT TERMS
Terms of Payment are using for vendor and customer invoice payments with a conditions of cash discount allows within a
period of payment, due date for payment, baseline date, etc.
Payment terms: If the payment is made within 14 days – 5% discount, or within 20 days – 2% discount, net due 30 days.
IMG MENU PATH
IMG > FINANCIAL ACCOUNTING –> ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE > BUSINESS
TRANSACTIONS > INCOMING INVOICES / CREDIT MEMOS >> MAINTAIN TERMS OF PAYMENT
TRANSACTION CODE
OBB8
STEP – 1
You can get the payment term configuration screen by IMG path or by entering t-code OBB8
Click on “New entries” to create new payment terms

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 STEP – 2
In new entries screen, enter the following fields
1. Payment terms: Enter four digits payment term key.
2. Sales text: Enter a short description of payment term key and text limit is 30 characters.
3. Own explanation: This field is used to give a detail explanation of payment term key. It will be overriding the
explanation that is automatically generated by the system.
4. Customer: Select this option if the payment term to be used for Customer accounts (accounts receivable).
5. Vendor: Select this option if the payment term to be used for Vendor accounts (accounts payable).
6. Block key: If select appropriate block key to block certain activities like payment block, payment clearing etc.
7. Select appropriate base line date calculation option from the list.
8. Percentage: Enter the discount percentage rate.
9. No of Days: Enter the no of days from base line date for which the discount percentage rate is valid.
10. Fixed rate: If you don’t want to use base line date, enter the days of month that the discount ends.
11. Explanation: Detailed explanation automatically generated by the system

Select save button to save the configured data.

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 SEVEN - CREATE VENDOR MASTER DATA
Creation of SAP Vendor Master data for material suppliers and services is documented in the SAP MM module.
IMG MENU PATH
IMG > FINANCIAL ACCOUNTING –> ACCOUNTS PAYABLE > MASTER RECORDS > MAINTAIN CENTRALLY >
CREATE/CHANGE/DISPLAY
TRANSACTION CODE
XK01 – CREATE
XK02 – CHANGE
XK03 – DISPAY

STEP - 1
Update the following fields and press enter.

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1. Company code: - Company Code identifying a separate legal entity for which a separate set of accounts is maintained for
the purpose of external reporting. Update the company code for which company you are going to create vendor code.
2. Purchasing Organization: - Organizational unit within Logistics, subdividing an enterprise according to the
requirements of Purchasing. Update the Purchasing organization code.
3. Account group: - Code used to determine the classification of the vendor account groups.
STEP – 2
Create Vendor: Address Screen
Update the Vendor Address in detail and press enter

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STEP – 3
Next screen update vendor control information and press enter

STEP – 4
In the next screen, update bank details of the vendor

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STEP – 5
Create Vendor: Accounting information Accounting
Reconciliation Account: – Vendor Reconciliation account is the G/L account for a group of vendors in the SAP FI-AP
module. Enter Sundry creditors GL account in reconciliation account filed. The account must be defined as a reconciliation
account for vendors.

Click on the Save icon to save configured vendor master record.

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 EIGHT - AUTOMATIC PAYMENT PROGRAM
The Automatic Payment Program in SAP FI is used to identify the due and overdue items and process a huge list of
vendor invoices and customer invoices to make payments in a single time.
APP helps in fetching all the due and overdue invoices for a wide range of Vendors and Customers and makes the payment
possible before the net due date, which in turn earns a good reputation to the organization
Automatic Payment Program Configuration Steps: -
The steps involved in the Configuration of Automatic Outgoing Payment- Program are
1. All Company Codes
2. Paying Company Codes
3. Payment methods in-country
4. Payment methods in Company code
5. Bank Determination
6. House Bank

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IMG MENU PATH
IMG > FINANCIAL ACCOUNTING –> ACCOUNTS RECEIVABLES AND ACCOUNTS PAYABLE -> BUSINESS
TRANSACTIONS -> OUTGOING PAYMENTS -> AUTOMATIC OUTGOING PAYMENTS ->
PAYMENT METHOD/BANK SELECTION FOR PAYMENT PROGRAM
TRANSACTION CODE
FBZP
STEP – 1
All Company Codes: -
Select New Entries

Enter company code in the ‘company code’ field and in the ‘Paying company code’ field, check the payment method supplier
and Maximum cash discounts box and click on the save icon.

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 STEP – 2

Paying Company Codes: -

Select Paying Company Codes and click on ‘New Entries
1. Enter paying company code
2. Maintain the incoming or outgoing payments
3. No exchange rate postings are generated by APP when you check this box
4. The invoices and the credit memos with the same reference can be settled with one payment if this option is
selected
5. Bill of Exchange payment request, check/bill of exchange procedure can be used when it is checked.

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Setting for the Bill of Exchange to be maintained when it is checked.

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 STEP – 3
Payment methods in-country: -
Click position and select the Country ‘IN’ as the Company code currency is INR, and the list of payment methods
available/permitted for the Country ‘IN’ will be displayed. We can create a new method if required.
Click on ‘New Entries’
1. Enter country’s name, select payment method, and update the description
2. Select payment method for incoming or outgoing payments.
3. Select the appropriate option in payment method classification and select the check box for ‘Allowed for personal payments.

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 STEP – 4
Payment methods in Company code: -
Select ‘Payment Methods in Company Code’ button, click on ‘New Entries’
1. Enter company code and select payment method C
2. Select ‘No optimization’ for Bank selection control
3. Update the minimum amount and maximum amount for Amount limits
4. Update F110_PRENUM_CHCK’. In the form data type.’
5. Enter the details ‘Drawer on the form’ field and click on save

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 STEP – 5
Bank Determination: -
1. Select the Paying Company code AD06 and Click on Bank Accounts Button
2. Select ranking order and give the payment method ranking order for the company code
3. Click on New Entries Button and Enter the below values to create Bank Accounts

STEP – 6
House Bank: -
House Bank provides the information about the Bank through which the Company makes payments to
Vendors/Customers.
Click on the New Entries button and update the house bank key and house bank data information,
Now Select the House Bank, click on new entries, and enter the Account ID and description, Bank Account Number.
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