SAP Account Receivable

1. Accounts Receivables
   

Sales Order	Captures sales information ( Material, Quantity, Price, Delivery dates)
Delivery Note	Entered based on SO information. It initiates picking and packing associated with delivering material to customer. Each delivery initiates goods issue transaction for recording goods stock change ( COGS Debit and Inventory Credit)
Billing Document	Last document in SD. GL accounts decided based on account determination
Vendor Invoice	Triggered by billing document

1. Define Acct group with screen layout (Customers)
   

• Tcode: OBD2
  
• Explanation:
  
• When creating a customer master need to specify customer account group
  
• Customer account group determine:
  • Customer account number
    
  • Whether the customer number is assigned internally by the system or externally by the user
    
  • Whether it's a onetime account
    
  • Which fields are ready for input when creating & changing customer master (Field status)
    

1. Enter Accounting clerk identification code for customers
   

• Tcode: SPRO – FA – ARAP – CA – MR – Preparation for creating customer master record – Enter accounting clerk identification code
  
• Explanation:
  • Enter identification code (01) & clerk name (Mohit) for a company code (100)
    
  • Code entered in customer master record
    
  • Helpful in evaluation
    

1. Define Industries
   

• Tcode: Tcode: SPRO – FA – ARAP – CA – MR – Preparation for creating customer master record – Define industries
  
• Explanation:
  • Define industry
    
  • Specify what industry a business partner belongs to by entering industry key in customer master record.
    
  • Helpful in evaluation, e.g. generate customer list for a industry
    

1. Sales order to Cash Cycle
   

• Sales Order – Delivery Note – Picking & Packing – Goods Issues (COGS Dr to Inventory Credit) – Billing document (Triggers AR Invoice in FI) – AR Invoice (Customer Dr to Sales Cr, Dunning Letters) – Customer Payments
  

1. Create number range for customer accounts
   

• Tcode: XDN1
  
• Explanation:
  • Can create internal or external number range.
    
  • Internal : System automatically allot the number
    
  • External: User assigns the number in the specified range.
    
  
   

1. Assign number range to Customer Acct group
   

• Tcode: OBAR
  
• Explanation:
  • We assign number ranges created in (XDN1) to customer account group (OBD2). Thus customer number for this customer a/c group can be selected from this range
    

1. Alternative Recon Account for Down Payment: Refer TFIN Notes
   

1. Extending Customers to Other company code
   

• Tcode: FD15
  
• Explanation:
  • Similar to Vendors discussed earlier
    

1. Create customer master record
   

• Create Customer Master : FD01
  
• Display Customer Master : FD03
  
• Display Customer Master : XD03
  
• Display Customer Master : VD03
  
• Display customer Credit Management : FD33
  
• Change customer credit management : FD32
  • Choose the Central data screen and enter the following data:
    • Total amount
      
    • Individual limit
      
    • Currency
      
  • You can enter the central data in any currency you choose, independently of the currencies of the control areas.
    
  • The fields in the section entitled Current credit limit assigned show to what extent (as a percentage) the customer has exhausted the amount of credit granted to him and in which credit control area the maximum individual credit limit has been exhausted to the greatest extent.
    
  • - The Last general info field displays when the last information on the customer was obtained.
    
  • Now access the Customer Credit Management Change: Status screen and enter the individual credit limit for the customer.
    
• Data:
  

Company code	Customer	Recon A/C
1000	3471	140000
1000	T-L69B09	140000

1. Posting a Customer Invoice
   

• Tcode: FB70
  
• Explanation:
  • Allows entering of customer invoices
    
  • If one time customer, required to enter customer name & address also
    

1. Posting a credit memo with ref. to Invoice
   

• Tcode: FB75
  
• Explanation:
  • Business scenario: Customer overcharged & requested refund.
    • Exp/ Sales DR
      
    • To Customer CR
      

1. Posting customer incoming payment manually
   

• Tcode: F-28
  
• Explanation:
  • Post customer incoming payment manually & clear OI
    
  • This transaction allows posting customer payments by referencing against a customer Invoice. This process is known as clearing. Where only a partial payment against customer invoice is received following options exist:
    • Partial Payment: Customer Invoice untouched. Payment on account created with reference to this invoice. In dunning both original unpaid invoice & payments are identified.
      
    • Residual Item: Here SAP system clears the original invoice but creates a new Invoice for the balance payment with reference to the original invoice
      

1. Displaying customer account balances.
   

• Tcode: FD10N
  

1. Displaying and changing line items in a customer account
   

• Tcode : FBL5N
  
• Explanation:
  
  • Report can be exported to excel/ word
    
  • Can display / change line items
    
  • Can set filter to define additional search criteria for documents displayed. E.g. doc type
    
  
  
  
   

1. Manual Clearing
   

• Tcode: F-32
  
• Explanation
  • Some customer invoices & payments received from customers, balance not zero. Use to clear these transactions. Clearing document generated with no real posting
    

1. Clear customer down payment against customer invoice
   

• Tcode: F-39
  
• Explanation:
  • For installment payment of vendor invoice select payment term Z910
    
  • To block 2nd installment : Put payment block in maintain terms of payment of 2nd installment
    

1. Customer Invoices
   

• Park Customer Invoice : FV70
  
• Post parked customer invoice : FBV0
  
• Enter Customer invoice : F-22 / FB70
  • Use this SAP transaction to create a customer invoice or chargeback manually
    
• Post customer incoming payment : F-52
  • Post incoming payments on both customer/ vendor
    
  • Allows to clear OI
    
  • Doc type : DZ ( Customer payment)
    
• Customer down Payment life cycle : << Refer TFIN>>
  

1. Display blocked SD documents
   

• Tcode: VKM1
  
• Table VBUK ( VKM1 display table)
  

1. Customer Dunning Notices
   

• Tcode: FI50
  
• Explanation:
  • << Refer TFIN>>
    
  • A customer does not settle dues on time. Payment reminders to customers are known as dunning notices
    
  • Can send dunning notices to individual customers or a list of customers
    

1. Customer due date analysis
   

• Tcode: S_ALR_87012168
  • Due date analysis of customers (Invoices, credit memos)
    

1. Configure Down Payment Received from customer
   

• Tcode: OBXR / FBKP
  
• Explanation:
  • Refer TFIN
    

1. Reason Codes:
   

• Tcode :OBBE
  
• Tcode: FA – AR/AP – BT – Outgoing Payments – Manual outgoing payments – Overpayments/ Underpayments – Define Reason codes
  
• Map Reason codes to GL Accounts: OBXL
  
• Reason codes table: T053R
  
• Explanation:
  • << Refer TFIN>>
    
  • RC explains the reason for diff between vendor invoice & payment doc amt. diff. Also this diff. amt. gets posted to different G/L accounts based on RC assigned
    
  • 
    DescriptionReason CodeShort text of RCCorrespondence TypeHere we send notice to the customer for short payment. Can specify the type of notice that has to be associated with this RCCharge off diff. via separate a/cIf selected diff. charged off to the GL a/c selected for this RCDDisputed Item
    

1. Define Accounts for payment Differences
   

• Tcode: FA – AR/AP – BT – Outgoing Payments – Manual outgoing payments – Overpayments/ Underpayments – Define Accounts for payment differences
  
• Explanation:
  • If no reason codes only a single entry is required, else separate accounts for various reason codes
    

S_ALR_87009895	VAT Report	Use this SAP transaction to view VAT reporting and to post VAT settlement. Transaction is run at month end after transactions have been completed. When settlement is run the balances of the 11005001 output tax and 22010000 input tax accounts are zeroed out and the balance of each is moved to the 12600000 VAT Settlement account.
SM35	Batch Input Monitoring	Use this SAP transaction to monitor and process batch input sessions to post all the applicable documents and perform all the database updates.

SAP Account Payable

1. Accounts Payable
   

1. Define Acct group with screen layout (Vendors)
   

• Tcode: OBD3
  
• Explanation:
  
• When creating a vendor master need to specify vendor account group
  
• Vendor account group determine:
  • Vendor account number
    
  • vendor number is assigned or externally by the user
    
  • Whether it's a onetime account
    
  • Which fields are ready for input when creating & changing customer master (Field status)
    

1. Enter Accounting clerk identification code for customers
   

• Tcode: SPRO – FA – ARAP – CA – MR – Preparation for creating customer master record – Enter accounting clerk identification code
  
• Data: 01 (Mohit)
  
• Explanation:
  • Enter identification code (01) & clerk name (Mohit) for a company code (100)
    
  • Code entered in customer master record
    
  • Helpful in evaluation
    

1. Define Industries
   

• Tcode: Tcode: SPRO – FA – ARAP – CA – MR – Preparation for creating customer master record – Define industries
  
• Explanation:
  • Define industry
    
  • Specify what industry a business partner belongs to by entering industry key in customer master record.
    
  • Helpful in evaluation, e.g. generate customer list for a industry
    

1. Vendor Match Codes
   

• Tcode: OB50
  
• Path: FA- AR/AP – Vendor a/c – Master Data – Match codes – Maintain match codes for vendor
  
• Explanation:
  • Match codes used to find vendor in the database
    
  • Can define our own match codes
    

1. Extending Vendors to Additional Company codes:
   

• Tcode: FK15 (if same client)
  
• Tcode: FK15 + FK16 (if different client)
  
• Explanation
  • Multiple company code scenarios. Some vendors shared by company codes. Need to extend a vendor say existing in 730 to company code 766
    

1. Define Sensitive fields
   

• Sensitive fields like vendor bank details. Changes to these fields should be confirmed by another user
  
• Confirmation of vendor master changes: FK08 and FK09
  
• Path: FA – AR/AP – Vendor a/c – Master data – Preparation for creating vendor master data
  

1. Payment Block Reasons for Vendor Invoices
   

• Path: FA-AR/AP – BT- OP- OP Global settings – Payment block reasons
  
• Explanation:
  • Vendor invoices can be blocked for payment. Here we define reason for blocking vendor invoices for payment
    
  • To block Invoice : FB02
    
• 
  

1. Payment block on a Vendor invoice by Payment terms
   

• Path: FA – AR/AP – BT – OP – OPGS – Payment block reasons – Define default values for payment block
  

1. Release vendor Invoices blocked for payment
   

• Tcode: MRBR
  

1. Create number range for vendor accts
   

• Tcode: XKN1
  
• Explanation:
  • Can create internal or external number range.
    
  • Internal : System automatically allot the number
    
  • External: User assigns the number in the specified range.
    

1. Assign number range to Vendor Acct group
   

• Tcode: OBAS
  
• Explanation:
  • We assign number ranges created in (XKN1) to vendor account group (OBD3). Thus vendor number for this vendor a/c group can be selected from this range
    

1. Delete Vendor / Customer Master Data
   

• Tcode: OBR2
  
• Explanation:
  • Used to delete customer master data
    
  • Can be deleted only for company codes not flagged as productive
    
  • Can delete customer master record only if no transaction exists in it
    
  
  
  
  
  
   

1. Maintain terms of Payment for vendors and customers
   

• Tcode: SPRO-FA-AR/AP-BT-Out going Invoices-Maintain Terms of Payment
  
• Tcode: OBB8
  
• Explanation:
  • Payment term assign to Vendor master record
    
  • Payment term proposed when entering a vendor document
    
  • E.g.: 60 days, 5% cash discount if paid in 30 days
    
  • Can also define default payment block for some payment terms
    
  
  
  
   

1. Define terms of payment for installment payment
   

• Tcode: OBB9
  
• Tcode: SPRO-FA-AR/AP-BT-Out going Invoices-Maintain Terms of Payment
  
• Explanation:
  • Installment payment to vendor invoice.
    
  • Define three terms of payment in (maintain terms of payment). Now map two of them to one of them in OBB9
    
  
   

1. Define Accts for cash discount taken
   

• Tcode: OBXU
  
• Tcode : SPRO-FA-AR/AP-BT-Out going Invoices-Define cash discount base for outgoing Invoices
  
• Tcode: Cash discount granted: OBXI
  
• Explanation
  • Cash discount received from vendors posted here
    

1. Define Accts for exchange rate diff
   

• Tcode: OB09
  

1. Define Accts for rounding differences
   

• Tcode: OB00
  

1. Define acct for bank charges (vendors)
   

• Tcode: OBXK
  

1. Define acct for payment diff ( manual outgoing)
   

• Tcode: OBXL
  

1. Down Payment Made to vendors
   

• Configure Down Payment made to vendor: OBYR / FBKP
  
• Vendor Down payment Request: F-47
  
• Post Vendor Down Payment: F-48
  
• Post Non PO Vendor invoice : FB60
  
• Clear Vendor Down payment : F-54
  

1. Duplicate Invoice Check
   

• Tcode: SPRO – MM – LIV – Incoming Income – Set check for duplicate Invoice
  

1. Creating a vendor master Record
   

• Create Vendor Master: FK01
  
• Transfer customer/ Vendor master data from source company code to target company code: SE38 - RFBIDE10/RFBIKR10
  
• Display changes to customer / vendor master data: SE38- RFDABL00 or RFKABL00
  
• Find duplicate customer master data: SE38 - RFDKAG00
  
• Find duplicate vendor master data: SE38- RFKKAG00
  
• Create vendor master record centrally : XK01
  
• Change Vendor Master record: XK02
  
• Display Vendor Master record: XK03
  
• Block /Unblock Vendor Master : XK05
  
• Mark vendor for deletion (Deleted by a special program) : XK06
  
• Explanation << Refer TFIN notes>>
  
• Account Group:
  
• While creating customer / vendor we have to provide account group. Account group controls:
  • Number range of the accounts
    
  • Status of the fields in the master records
    
  • If the account is a onetime account
    
• If a customer is also a vendor the APP and the dunning program can clear open items against each other. For this :
  • Enter the vendor account number in the customer account, or vice versa.
    
  • Select the field clearing with customer / vendor
    

Previous Acct	Legacy system acct number
Sort Key	Assignment field value
Tolerance Group	Tolerances with in which this vendor can transact
Payment Method	Method by which this vendor accept payment

1. Post Non PO based Vendor Invoice
   

• Tcode: FB60
  
• Explanation:
  • To post no PO based vendor invoices
    

1. Post Manual Payment to Vendor and not generate payment media (iDoc, check)
   

• Tcode: F-53
  
• Explanation:
  • Vendor outstanding invoices are paid in APP (F110). Some invoice not paid can be paid manually in Tcode F-53
    

1. Displaying Vendor Account balance
   

• Tcode: FK10N
  
• Explanation:
  • To display vendor a/c balance
    

1. Displaying / Releasing Vendor Invoices
   

• Tcode: FBL1N
  
• Explanation:
  • To display vendor a/c line items, Invoices, credit memos, payments etc
    
  • In SAP we can block / release documents for payments
    
  • Block invoice for payment @ FB60. Release invoice for payment FBL1N. Double click invoice - click to change mode - remove payment block
    

1. Automatic Payment Program (Incoming & Outgoing Payments)
   

• Tcode: F110
  
• Explanation:
  
• << Refer TFIN>>
  

I have tested the proposed configuration change, please find below my findings:

Option 1:

Payment Method	House bank	Ranking	Currency	Comments
I	HSB21	1	EUR	For payment method I all EURO payments from HSB21
I	HSB22	2	Blank	For payment method I, all payments other than EURO from HSB22
I	HSB23	3	USD	For payment method I, USD payments from HSB22

1. Define Number Range for Checks
   

• Tcode: FA(N) – AR/ AP – BT – Outgoing Payments – Automatic outgoing payments – Payment Media – Check Management
  
• Explanation:
  • Can think of each check lot as a Check Book
    

1. Manual Clearing of Vendor open Items
   

• Tcode: F-44
  
• Explanation:
  • Manually clear vendor documents ( Invoice, Credit Memos etc)
    
  • Double click & deselect all - Select 2/more documents to be cleared. - Save
    
  • No real posting but a clearing document is created
    

1. Display Purchase Order
   

• Tcode: ME23N
  
• Change PO : ZMMME22 or ME22N
  
• Search for a PO : ME2B
  
  
  

1. PO-based Vendor invoice/credit memo/Planned Delivery Cost
   

• Tcode: MIRO
  
• Explanation:
  
  • You enter the data from the vendor invoice in the system. As you do this, you compare the data with the suggested quantities and values for each item. If differences occur, you make any necessary corrections
    
  • Planned Delivery Costs are costs incurred over and above the cost of the material and include such costs as freight, handling and customs duties. Costs will be classified into categories posted to a separate GL account - Freight and Customs Duties, for example. Planned delivery costs have the advantage that delivery costs are included in the valuation of the material at time of Goods Receipt.
    
  • In PO Reference select: + Planned Delivery cost
    
  • A Credit Memo is received from a trade vendor and the Credit Memo is posted with reference to a Purchase Order and serves as a cancellation of the Invoice Receipt. Posting a credit memo always leads to a debit posting on the vendor account. When you post a credit memo, the total quantity in the purchase order history is reduced by the credit memo quantity.
    
  • Imp: Select Credit Memo on transaction drop down box on top of screen
    
• Display/Change PO-Based Vendor Document : MIR4
  
• Park Invoice: MIR7
  

S_ALR_87009895	VAT Report	Use this SAP transaction to view VAT reporting and to post VAT settlement. Transaction is run at month end after transactions have been completed. When settlement is run the balances of the 11005001 output tax and 22010000 input tax accounts are zeroed out and the balance of each is moved to the 12600000 VAT Settlement account.
SM35	Batch Input Monitoring	Use this SAP transaction to monitor and process batch input sessions to post all the applicable documents and perform all the database updates.