Heinz Forsthuber, Jörg Siebert

SAP ERP Financials User’s Guide

®

Bonn �
Boston
Contents at a Glance

1 Overview ..........................................................................................19

2 General Ledger Accounting ......................................................39

3 Accounts Payable Accounting ............................................. 105

4 Accounts Receivable Accounting ....................................... 163

5 Asset Accounting ...................................................................... 261

6 Bank Accounting ....................................................................... 323

7 Closing Operations .................................................................. 383

A Basic Principles of the SAP System .................................. 533

B Glossary . ..................................................................................... 555

C Menu Paths .................................................................................. 563

D Sample Closing Procedure Document ............................... 573

E Additional Sources of Information ...................................... 577

F The Authors ................................................................................. 579

Contents

Introduction ................................................................................. 15

1 Overview ....................................................................... 19

1.1 Reports and Transaction Codes ...................................... 20

1.2 Real-Time Processing and the Document Principle ......... 21
1.3 SAP R/3 Replaces SAP R/2 ............................................. 22
1.4 Integration .................................................................... 26
1.5 SAP ERP Replaces SAP R/3 ............................................ 26
1.6 New Features in SAP ERP Financials (Release 6.0) ......... 29
1.6.1 Release Upgrade ................................................. 32
1.6.2 Enhancement Package ......................................... 33
1.6.3 Maintenance Strategy ......................................... 35
1.7 Conclusion .................................................................... 36

..........................................2GeneralLedgerAccounting 39

2.1 Basic Principles .............................................................. 39

2.1.1 Cost and Activity Accounting .............................. 40
2.1.2 Objectives of General Ledger Accounting ............ 41
2.1.3 Configuring the System ....................................... 41
2.1.4 Client .................................................................. 42
2.1.5 Chart of Accounts ............................................... 42
2.1.6 Company Code ................................................... 42
2.1.7 Business Area ...................................................... 43
2.1.8 Profit Center ....................................................... 43
2.1.9 Controlling Area .................................................. 44
2.2 FI-GL Component .......................................................... 45
2.3 Master Data .................................................................. 47
2.3.1 Setting Up G/L Account Master Data .................. 48
2.3.2 Maintaining G/L Accounts of Chart of Accounts
Segment ............................................................. 49
2.3.3 Maintaining G/L Accounts of Company Code
Segment ............................................................. 53

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2.3.4 Changing G/L Account Master Data .................... 59

2.3.5 Blocking G/L Accounts ........................................ 62
2.4 Documents in the SAP System ....................................... 63
2.4.1 Document Layout ............................................... 63
2.4.2 Document Header ............................................... 64
2.4.3 Document Type ................................................... 66
2.4.4 Document Items ................................................. 69
2.4.5 Posting Key ......................................................... 71
2.4.6 Special G/L Indicator ........................................... 73
2.5 Document Entry ............................................................ 74
2.5.1 Entering G/L Account Postings ............................ 74
2.5.2 Entry Tools .......................................................... 78
2.6 New General Ledger in SAP ERP Financials .................... 84
2.6.1 Overview ............................................................ 84
2.6.2 Evaluation Report for Accenture GmbH ............... 90
2.7 Evaluations in General Ledger Accounting ..................... 98
2.7.1 Journal ................................................................ 98
2.7.2 Balance Sheet ..................................................... 101
2.8 Conclusion .................................................................... 103

......................................3AccountsPayableAccounting 105

3.1 Business Principles ......................................................... 105

3.2 FI-AP Software Component ........................................... 106
3.3 Master Data .................................................................. 106
3.3.1 Structure of the Vendor Master Data ................... 106
3.3.2 Creating a Vendor Account ................................. 108
3.3.3 Blocking a Vendor Account ................................. 116
3.4 One-Time Vendor .......................................................... 117
3.5 Overview of the Integrated Business Transaction ........... 119
3.6 Entering Incoming Invoices ............................................ 122
3.6.1 General Posting ................................................... 122
3.6.2 Single-Screen Transaction in FI ............................ 125
3.6.3 Fast Data Entry .................................................... 126
3.6.4 Invoice Verification in MM .................................. 128
3.7 Automated Payment Transactions .................................. 130
3.7.1 Payment Methods in SAP Systems ....................... 131
3.7.2 Payment Block Reasons ....................................... 132
3.7.3 Accessing the Payment Program .......................... 133

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3.7.4 Payment Proposal ............................................. 138

3.7.5 Executing the Payment Run .............................. 144
3.8 Manual Outgoing Payments .......................................... 146
3.8.1 Complete Clearing ............................................ 146
3.8.2 Residual Items .................................................. 149
3.8.3 Partial Payment ................................................. 152
3.9 Evaluations in Accounts Payable Accounting .................. 154
3.9.1 Confirmation of Critical Modifications ............... 154
3.9.2 Open Item Due Date Analysis ........................... 156
3.9.3 Vendor Information System ............................... 158
3.10 Conclusion .................................................................... 161

.................................4AccountsReceivableAccounting 163

4.1 Business Principles ......................................................... 163

4.2 FI-AR Component ......................................................... 165
4.3 Master Data .................................................................. 166
4.3.1 Creating a Customer Account ............................ 167
4.3.2 Blocking a Customer Account ........................... 179
4.3.3 Archiving of Customer Master Records .............. 180
4.4 Overview of the Integrated Business Transaction ........... 182
4.5 Monitoring Credit Lines with SAP Credit
Management ................................................................. 185
4.6 Customer Interaction with SAP Biller Direct ................... 193
4.7 Clarifying Payment Deductions with SAP Dispute
Management ................................................................. 200
4.8 Dunning Procedure by Telephone with SAP Collections
Management ................................................................. 209
4.9 Dunning Procedure by Mail ........................................... 217
4.9.1 Introduction to the Dunning Program ............... 218
4.9.2 Maintaining Parameters .................................... 219
4.9.3 Creating the Dunning Proposal ......................... 224
4.9.4 Processing the Dunning Proposal ...................... 226
4.9.5 Printing Dunning Letters ................................... 232
4.10 Evaluations in Accounts Receivable ............................... 236
4.10.1 Customer List .................................................... 236
4.10.2 Customer Balances ............................................ 239
4.10.3 Customer Payment History ................................ 241
4.10.4 Accounts Receivable Info System ...................... 243

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4.10.5 SAP Credit Management ................................... 254

4.10.6 SAP Dispute Management ................................ 255
4.10.7 SAP Collections Management ........................... 258
4.11 Conclusion .................................................................... 259

..........................................................5AssetAccounting 261

5.1 Business Principles ......................................................... 261

5.2 The SAP Software Component FI-AA ............................. 262
5.2.1 Chart of Accounts and Chart of Depreciation .... 263
5.2.2 Depreciation Area ............................................. 264
5.2.3 Valuation Parameters ........................................ 266
5.2.4 Value Transfer to General Ledger ....................... 267
5.2.5 Derived Depreciation Areas .............................. 268
5.2.6 Integration into Controlling ............................... 268
5.2.7 Integration Considerations ................................ 269
5.3 Master Data .................................................................. 271
5.3.1 Group Level: Asset Class ................................... 272
5.3.2 Asset-Related Level: Group Asset and
Subnumber ....................................................... 274
5.3.3 Creating Asset Master Records .......................... 275
5.3.4 Changing an Asset Master Record ..................... 282
5.3.5 The Asset Subnumber ....................................... 284
5.3.6 Blocking an Asset Master Record ...................... 285
5.4 Asset Transactions ......................................................... 287
5.4.1 Transaction Types for Asset Transactions ............ 287
5.4.2 Document Types for Asset Acquisition .............. 288
5.4.3 Posting an Asset Acquisition ............................. 288
5.4.4 FI-AA with Integrated Accounts Payable
Accounting Without a Purchase Order
Reference ......................................................... 289
5.4.5 FI-AA Without Integrated Accounts Payable
Accounting and Without a Purchase Order
Reference ......................................................... 295
5.4.6 Acquisition in MM with Integrated Accounts
Payable Accounting and a Purchase Order
Reference ......................................................... 297
5.4.7 Depreciation ..................................................... 301
5.4.8 Asset Retirement .............................................. 305

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5.4.9 Asset Transfer .................................................... 310

5.5 Evaluations in Asset Accounting .................................... 314
5.5.1 Asset Balance ...................................................... 314
5.5.2 Directory of Unposted Assets .............................. 316
5.6 Effects of New General Ledger on FI‑AA ........................ 318
5.6.1 Use of Delta Depreciation Area for Parallel
Financial Reporting ............................................. 318
5.6.2 Better Support for the Gross Procedure ............... 320
5.7 Conclusion .................................................................... 321

6 Bank Accounting .......................................................... 323

6.1 Business Principles ......................................................... 323

6.2 The FI-BL Component ................................................... 324
6.3 Master Data .................................................................. 324
6.4 Consequences of Introducing SEPA ................................ 328
6.5 Payment Transactions and Bank Communication ............ 332
6.5.1 Incoming Payments ............................................. 332
6.5.2 Outgoing Payments ............................................. 336
6.5.3 Bank Communication .......................................... 341
6.6 Processing Bank Statements .......................................... 351
6.7 Cash Journal .................................................................. 359
6.8 Check Deposit Transaction ............................................. 369
6.9 Evaluations in Bank Accounting ..................................... 376
6.9.1 Liquidity Forecast ................................................ 376
6.9.2 Check Register .................................................... 380
6.10 Conclusion .................................................................... 382

7 Closing Operations ....................................................... 383

7.1 Basic Business Principles ................................................ 383

7.2 Management of Parked Documents ............................... 386
7.3 Automatic Maintenance of the GR/IR Account .............. 389
7.4 Transfer of Salaries and Wages ....................................... 397
7.5 Provisions ...................................................................... 401
7.6 Periodic Accruals and Deferrals ...................................... 409
7.6.1 Recurring Entry Documents ................................. 410
7.6.2 Accrual Engine .................................................... 415
7.7 Asset Accounting ........................................................... 421

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7.7.1 Assets Under Construction (AuCs) ....................... 422

7.7.2 Asset Inventory ................................................... 430
7.7.3 Depreciation Posting Run .................................... 436
7.7.4 Asset History Sheet ............................................. 450
7.8 Value Adjustments ........................................................ 453
7.8.1 Individual Value Adjustments .............................. 453
7.8.2 Flat-Rate Value Adjustment ................................. 457
7.9 Foreign Currency Valuation ............................................ 465
7.10 Interest Calculation ....................................................... 474
7.11 Reconciliation Measures ................................................ 479
7.11.1 Manual Checking of Postings ............................... 479
7.11.2 Technical Reconciliation of Transaction Figures .... 483
7.12 Intercompany Reconciliation ......................................... 486
7.13 Reclassification .............................................................. 498
7.14 Balance Confirmations ................................................... 504
7.15 Period Control ............................................................... 511
7.16 Tax on Sales and Purchases ............................................ 515
7.17 Balance Carryforward ..................................................... 523
7.18 Conclusion .................................................................... 529

.........................................................................Appendices 531

A Basic Principles of the SAP System .......................................... 533

A.1 Operating SAP ERP ........................................................ 533
A.2 Introduction .................................................................. 533
A.3 Logon ............................................................................ 534
A.3.1 Password Rules ................................................... 535
A.4 Logon Procedures .......................................................... 536
A.5 User Interface ................................................................ 536
A.6 Navigation ..................................................................... 538
A.6.1 Navigation via the Menu ..................................... 538
A.6.2 Navigation via Transaction Codes ........................ 539
A.6.3 Favorites Maintenance ........................................ 541
A.6.4 Navigation via the Toolbar .................................. 543
A.7 Data Entry ..................................................................... 543
A.8 User Settings ................................................................. 544
A.8.1 User Interface Settings ........................................ 544
A.8.2 Options ............................................................... 545
A.8.3 Personal Data ...................................................... 547

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A.9 Message Types .................................................................... 551

A.10 Sessions ................................................................................ 552
A.11 Storing Data ........................................................................... 553
A.12 The SAP Library .................................................................... 553
A.13 The SAP Glossary ................................................................. 553
A.14 Logoff ..................................................................................... 554
B Glossary .......................................................................................... 555
C Menu Paths . ................................................................................... 563
C.1 Chapter 2—General Ledger Accounting ............................ 563
C.2 Chapter 3—Accounts Payable Accounting . ...................... 563
C.3 Chapter 4—Accounts Receivable Accounting ................... 565
C.4 Chapter 5—Asset Accounting ............................................. 566
C.5 Chapter 6—Bank Accounting .............................................. 567
C.6 Chapter 7—Closing Operations .......................................... 568
D Sample Closing Procedure Document .......................................... 573
E Additional Sources of Information ................................................. 577
F The Authors ..................................................................................... 579

Index ...................................................................................................... 583

13
 Accounts Payable manages payables. This chapter describes
the points of contact between SAP ERP Financials and the
purchas-ing department. It also details how to perform efficient
postings. Information on standard evaluations and the automatic
payment run rounds off the chapter.

3 Accounts Payable Accounting

This chapter explains the basic business principles of accounts payable

accounting, describes the SAP subledger, FI-AP (Accounts Payable), and
then details various posting procedures, such as the various options for
entering incoming invoices. It introduces four alternative transactions for
entering documents, namely, general posting, fast data entry, single-
screen transaction, and integrated invoice verification. If the incoming
invoices are available in the SAP system, the program provides different
options for the payment run for paying vendor invoices in an optimal
manner. The main new feature in Release ERP 6.0 is accounts payable
accounting in the context of payment transactions and bank communi-
cation. For more details, refer to Chapter 6, Bank Accounting. Reporting
ensures transparency for the presentation of the essential information in
sample reports for critical master data changes, open items, due date
analyses, and in the accounts payable information system.

3.1 Business Principles

For subledger accounts you differentiate between vendor accounts or vendors Accounts payable
and customer accounts or customers. In contrast to general led-ger management as
a continuous
accounting, in which you only manage the total of payables for the financial
business process
statement, you use Accounts Payable Accounting to manage all details
regarding business transactions, such as invoices, credit memos, and
outgoing payments. The interaction between the purchasing depart-ment and
accounts payable accounting assumes a significant role here. At

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3    Accounts Payable Accounting

a very early stage, purchase requisitions or purchase orders lay the foun-
dation for successful invoice verifications. You also have to ensure a cor-
rect documentation of the goods receipt, because it is used as the basis
for releases for payments of invoices. The FI-AP component keeps and
manages account-based data of all vendors. Furthermore, it is an integral
part of the purchasing system. Purchase orders, deliveries, and invoices
are managed based on vendors and update vendor evaluations.

3.2 FI-AP Software Component

Features FI-AP (accounts payable accounting) ensures that legal obligations to keep
records are fulfilled for reliable accounting but also serves as the information
source for an optimal purchasing policy and supports the enterprise’s liquidity
planning owing to the direct integration with cash management and
forecasting. Account analyses, due date forecasts, and further standard
reports are available for the open item management. You can customize the
correspondence according to the individual require-ments of your enterprise.
The payment program automatically pays due payables and closes the
corresponding items. To document the processes in accounts payable, you
can use account balances, journals, balance audit trails, and numerous
standard reports. For key date valuations you revaluate foreign currency
items, determine vendors on the debit side, and scan the balances
established this way for remaining terms.

3.3 Master Data

This section focuses on the vendor master record. The data contained
therein is required for handling business transactions in the accounting
area and in the purchasing area.

3.3.1 Structure of the Vendor Master Data

Division of the The master data of vendors is made up of three parts. The general data is
master record into maintained at the client level. This data is available for all company codes.
three parts
At this level, you specify the name of the subledger account in subledger
accounting, the tax number, and the bank details. Data that is important

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 Master Data 3.3

for individual company codes is specified in the company code area. This
includes the account number of the reconciliation account in the general
ledger, the terms of payment, and the settings for the dunning proce-dure.
Figure 3.1 shows the basic structure of a vendor account.

Vendor
Master Data

General
Data

Company Code
Data

Purchasing
Data

Figure 3.1 Structure of the Vendor Account

For the integrated use with the MM module (materials management ), you
are provided with additional fields for the vendor master record. These
fields contain information that you require to handle business transactions
in the purchasing component. In this area, you enter data on requests, on
purchase orders, and for invoice verifications. This data can vary in each
defined purchasing area and is only used by applica-tions of the MM
module. This data includes conditions (for example, purchase order
currency, terms of payment, or minimum purchase order value), sales
data (sales person including telephone number), and control parameters.

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3.3.2 Creating a Vendor Account

You create vendor master records by selecting the menu path Account-
ing • Financial Accounting • Accounts Payable • Create Master Data
(Transaction FK01).

Central/ Alternatively, you can enter the general data and the company code data
decentralized separately. However, you can enter and display the purchasing data
maintenance of the
within the vendor menu in the Central Maintenance only. In contrast to the
master record
maintenance of the customer accounts, the system doesn’t open a dialog
box but navigates you to an initial screen (see Figure 3.2). Here, you can
enter the account number of the vendor and the company code. When
you create a vendor account, you must also specify an account group,
which controls the internal and external number assignment when
creating the master record.

Figure 3.2 Maintaining a Vendor Account—Initial Screen

When you press the [Enter] key, the SAP system displays the screen
shown in Figure 3.3.

EE Name and Street Address

The reports and correspondence in the SAP system access this
address data. Depending on the report, it then appears in the address
and salutation of correspondence or in the report lists.

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 Master Data 3.3

Figure 3.3 Maintaining a Vendor Account—Address Data

EE Search Terms
In this field, you can enter a freely selectable term that is used for the
search for master records with the matchcode. To ensure that the field
is filled uniformly, it is recommended that you specify rules. For the
standard matchcode, this is the primary key with which you can search
for master records most rapidly.
EE Language (Communication)
Here, you define the language in which the correspondence is writ-ten.

EE Account control (Customer)

If a business partner is both a vendor and a customer, you’re provided Clearing processes
with the option to have the system clear receivables and payables auto- with vendors that
are also customers
matically (automatic payment program or dunning). In this case, you must
enter the account number of the customer in the vendor master

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3 Accounts Payable Accounting

record and vice versa (see Figure 3.4). If these fields are filled, the sys-
tem displays the Clearing field in the account management for the data of
the company code. Clearing is not possible until this field is activated. In
the example, the vendor is also a customer. Here, a link to customer
account 1000 including subsequent clearing was selected. The effects of
this become particularly obvious in Section 3.7, Automated Payment
Transactions.

Figure 3.4 Maintaining a Vendor Account—Control Data

Payment If you press [Enter], the system takes you to next entry screen (see Fig-ure
transaction 3.5):
settings
EE Bank Details
If the automatic payment program is supposed to consider a vendor,
you need to enter the bank details. For automatic debits, the corre-
sponding field must also be selected.

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 Master Data 3.3

EE Alternative payee
If you enter the account number of the vendor here, all payments are
made using the bank details of this business partner (bank transfers,
automatic debit, credit memos). This field exists in the general part, in
the company code area, and at the document level. The specification
that is more detailed applies (from the general area to document level).

EE Bank type
If you define multiple bank details in a vendor master record, you can
differentiate them by means of any four-digit abbreviation (partner bank
type). If you want to pay an open item using specific bank details of the
vendor, you must define the corresponding abbreviation in the line
item. The payment program of the SAP system then controls the
specified bank details of the vendor.
EE IBAN
In many cases, you can determine the IBAN from the bank key and
account number. Because this procedure is not necessarily unique, you
should always verify it. Chapter 6, Bank Accounting, provides more
information on the IBAN and SEPA.

Figure 3.5 Maintaining a Vendor Account—Payment Transactions

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3 Accounts Payable Accounting

When you press [Enter], the system navigates you to the maintenance of
the company code area of the vendor account—to the account manage-
ment data first (see Figure 3.6):

EE Reconciliation account
Each posting to an account of subledger accounting automatically cre-
ates an entry to the general ledger. This integration is ensured through
the reconciliation account. The field status group in the master record
of the reconciliation account specifies the screen layout for document
entry. The items of the vendor’s account are managed in the currency
of the reconciliation account.
EE Sort key
You use sort keys to display line items. Usually, the SAP system sorts
the documents in the line item display based on the content of the
Assignment field in the document. This sort key controls how the
Assignment field is automatically filled during document entry if it is not
populated with a value from another source.
EE Authorization
In this field, you can specify who receives change or read authoriza-tion
for this account.

Figure 3.6 Maintaining a Vendor Account—Account Management (Accounting)

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 Master Data 3.3

When you press [Enter], the system takes you to the settings for the pay-
ment transactions in financial accounting. The system now displays the
screen shown in Figure 3.7.

EE Payment terms
This key is used for orders, purchase orders, and invoices and pro-
vides information about dunning and payment transactions. The value
entered here is used as a default value for the document entry.
EE Tolerance group
To map different rights for the processing of business transactions, you
can assign accounting clerks to so-called tolerance groups. You make
specifications for the granting of cash discounts and for the han-dling of
payment differences for each tolerance group. This entry affects
dunning and the entry of payment transactions. For manual closing, the
payment differences are accepted by the system up to the defined
tolerance, and the items are closed.

Figure 3.7 Maintaining a Vendor Account—Payment Transactions (Accounting)

EE Checking double invoices

If you select this field, the system checks, when a document is entered
for this vendor account, whether the invoice or credit memo has already
been entered. This check is supposed to prevent users enter-

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ing invoices or credit memos twice by mistake. Depending on the

content of the Reference document header field, the system checks
whether there is a document in the SAP system that corresponds to the
following content:
EE If the Reference field in the document header is empty, there has to
be a document in the SAP system that contains the same values in
the Company Code, Vendor, Currency, Document Date, and
Amount in Document Currency document fields.
EE Otherwise, the company code, vendor, currency, document date,
and reference number have to be identical.
EE Payment methods
Here, you can find the payment methods that are allowed for this
vendor if the automatic payment program is used. If a payment method
for the incoming payment is entered here, for instance, B (bank direct
debit) or A (automatic debit), this business partner is not considered in
dunning.
EE Payment block
An entry in this field causes a block of the account for payment trans-
actions. In the automatic payment program, the block is effective if it is
set either in the master record or in the document. If the block is set in
the master record, all open items of this customer are trans-ferred to
the exception list. The * blocking key (asterisk) causes the system to
ignore all open items of the account; the + key (plus) causes the
system to ignore all open items for which no payment method has been
explicitly specified in the document.
EE Individual payment
This checkbox determines that all open items of this vendor are paid or
collected separately. This prevents multiple open items clearing jointly
with one payment medium.

Dunning vendors When you press [Enter], the system takes you to next entry screen (see
Figure 3.8). You can also dun vendors. This is particularly useful if the
payables are less than the receivables.

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 Master Data 3.3

Figure 3.8 Maintaining a Vendor Account—Correspondence (Accounting)

EE Dunning Procedure
If this business partner is supposed to be considered in the automatic
dunning procedure, you must define a dunning procedure here. The
entry is used as a default value for the document entry.
EE Dunning block
If you select this field, this business partner is not included in the
dunning proposal of the automatic dunning program.
EE Dunning level
This field is usually set by the dunning program. In exceptional cases,
you can change the dunning level manually. The dunning level influ-
ences the next dunning run. If the dunning level is 0, the system uses
the specified minimum number of days to calculate the days in arrears;
for all other dunning levels, the system uses the grace days. The days
in arrears define the date for the next dunning run of this account.
EE Dunning clerk
The specified name is printed on the dunning notices. The dunning
clerk does not have to be identical to the accounting clerk.
EE Accounting clerk
The name that corresponds to the defined ID appears on all corre-

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3 Accounts Payable Accounting

spondence documents sent to the business partner. Additionally, it is

printed on the dunning notices, if the Dunning clerk field is not filled.

With these specifications, two of three possible parts of the vendor mas-
ter data are maintained at the client and company code level. If a vendor
account is no longer supposed to be used, various blocking mechanisms
are available.

3.3.3 Blocking a Vendor Account

Central block The master record of a vendor contains multiple fields for blocking the
account. This makes it possible to centrally block an account for account-
ing and purchasing. For accounting, you have the option to block the
account in one or more company codes. A dunning or payment block can
be set at the company code level. You can set and undo the block-ing
indicator in the subledger at any time. Figure 3.9 illustrates a central
block, which is available under the menu path Accounting • Financial
Accounting • Accounts Payable • Central Maintenance • Master Data •
Block/Unblock menu path (Transaction XK05).

Figure 3.9 Maintaining a Vendor Account—Blocking

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 One-Time Vendor   3.4

For vendors, you can set posting blocks and purchasing blocks. The block
for quality reasons differentiates again between blocks for purchase
orders; for requests and purchase orders; for purchase orders, requests,
and goods receipt; and for source determinations and total blocks.

In addition to the options for defining master data for accounts pay-able
and blocking it at any time, an option for one-time vendors is also
available.

3.4 One-Time Vendor

The SAP system provides a special master record type for one-time or One-time vendor
sporadic vendors. In contrast to the “regular” master records (customers
and vendors), this master record does not contain specific data of the
business partner, such as the address and bank details. This information
is entered separately during document entry. When posting to a one-time
account, the system automatically navigates to a master data screen
where you can enter the specific data of the business partner (see Figure
3.10). Master records for one-time accounts are stored separately in a
specific account group. The system hides the specific fields of the busi-
ness partner when the master data is entered (see Figure 3.11).

If you decide to use one-time accounts, you should create multiple one-
time accounts, because the large volume of postings to a one-time
account can easily lead to confusion. In this case, you should group the
business partners according to defined criteria (first letter, area, indus-try).
These criteria assume a particular role, because it is critical for post-ings
or clearings to quickly find the appropriate account of the business partner
and the corresponding item.

You maintain one-time accounts the same way you maintain customer or Limited
vendor accounts. The open items can be dunned using the dunning functionality

program and processed using the payment program. The functionality of

these special accounts is only limited in some aspects. For example,
clearing is not possible for a customer that is also a vendor. Once you’ve
defined the basis with the master data and clarified the use of one-time
vendors, it is time to have a look at an integrated business transaction in
accounts payable accounting.

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3 Accounts Payable Accounting

Figure 3.10 Personal Data in a One-Time

Document

Figure 3.11 Master Record of a One-Time Account

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 Overview of the Integrated Business Transaction   3.5

3.5 Overview of the Integrated Business Transaction

Accounts payable in the context of integrated business transactions usu-

ally concerns the individual steps from purchase orders to outgoing pay-
ments (purchase to pay). Integration also means that the information flow
involves different departments. This example includes the depart-ments of
purchasing, accounts payable accounting, controlling, and trea-sury.
Figure 3.12 illustrates the various departments at four levels.

Controlling Purchase Purchase Provision

Requisition Order Actual
Actual
Commitment Commitment

Purchasing Purchase Purchase Goods Invoice

Requisition Order Receipt Verification/
Document Parking

General Ledger Vendor/

Accounting Cashed
GR/IR Clearing Release/ Payment
Checks
Account G/L

Treasury Cash Cash Cash Cash Electronic

Forecast Forecast Forecast Item Banking

Figure 3.12 Integrated Business Transaction Purchase to Pay

Ordering Process
The ordering process in this example starts with a purchase requisition. Purchase
Before you can generate a purchase order for the vendor, this internal requisition

approval process ensures clarity and transparency. The purchase requisi-

tion defines exactly at which price goods or services may be ordered, and
an approval of the purchase requisition requires a dual-control or three-
control principle. This early implementation facilitates later invoice ver-
ifications. Additionally, the purchase requisition enables the involved
departments, controlling and treasury, to obtain an overview of the
expected expenses or cash outflows.

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Goods Receipt
GR/IR account If goods have been received for this purchase order, the goods receipt is
not only based on quantities but also documents the exact value of the
goods for the purchase order. If no vendor invoice that corresponds to the
goods receipt is available at the end of the month, this value serves as the
basis for accrual and deferral postings. You can find a detailed description
in Chapter 7, Section 7.3, Automatic Maintenance of the GR/IR Account.

Incoming Invoice
Processing of incoming invoices is one of the traditional areas in accounts
payable accounting. Services are usually documented in paper form and
sent by post: “No posting without document.” This statement referred to
paper documents in the past. Longer legally stipulated retention periods
and the demand for more comfortable options to access archived docu-
ments ruled out microfilming. Today, enterprises store a scanned, optical
image of the original document. Up until recently, this scanning process
was performed quite late in the process, but now a lot of enterprises per-
form it at the beginning of the process chain. The benefit of this is addi-
tional transparency and an acceleration in processing, which means that
cash discounts are no longer lost thanks to timely processing and pay-
ment. However, the implementation of this requires a central inbox for
incoming invoices. Once the invoices have been scanned, they find their
way through the enterprise as optical documents via the workflow.

OCR In addition to the implementation of a central inbox and an early scan-ning

process, the optical recognition and interpretation of paper invoices is the
next step on your way to an optimized process. Owing to the performance
of today’s computers, OCR (optical character recognition) allows for
default account assignment of the accounting document. Provided that
the system finds the corresponding purchase order for the invoice and
provided that there are no price differences or quan-tity variances, the
system can automatically post the document in the background.

EDI If a large invoice volume is involved, the transfer of invoice data via EDI
(electronic data interchange) including a subsequent printout of the col-

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lective invoice has become established as a process. These are one-to-

one connections between customers and vendors. In some industries, for
example, in the automotive industry, this procedure is already widely
used. Summarized, you can distinguish between the following types of
processing incoming invoices:

EE Manual processing with late scanning

EE Manual processing with early scanning, so that an optical image is
provided for the workflow in the enterprise
EE Automatic processing and early scanning via OCR, which also creates
default account assignments in addition to the optical image
EE Automatic processing where large invoice volumes are transferred via
EDI

Payment
If goods and invoices have been received and the invoice verification has
a positive result, the automatic payment program is responsible for
making the payments at the optimal time. The payment run includes the
planned liquid funds (see Chapter 6, Section 6.5, Payment Transactions
and Bank Communication) and cash discounts and due dates for net pay-
ments of invoices. Because the accounts payable accountant is involved
in this process, the following sections discuss the manual and automatic
payment transactions.

Cashed Checks
Cashed checks enable specific evaluations. You can evaluate when and
whether vendors cashed the received checks and even indicate this as an
average value in the master record.

In integrated SAP ERP systems, it is always advantageous to consider the

entire business process. The task area of an accounts payable accountant
has critical connections to other departments in your enterprise.

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3.6 Entering Incoming Invoices

You can use several transactions to post incoming invoices in the SAP
system. For example, you can enter an incoming invoice in the SAP sys-
tem either in the logistics area in the MM module or within the account-ing
area in the FI-AP component.

3.6.1 General Posting

The general FI-AP posting transaction has basically been provided since
the days of the R/2 system (formerly Transaction TB01). The menu path
in SAP ERP is Accounting • Financial Accounting • Accounts Payable
• Other Postings • General Invoice (Transaction FB01).

The most important fields for entering a document header are the
following:

EE Document Type and Currency/Rate

Depending on the business transaction
EE Company Code
Of the respective enterprise
EE Document Date
Relevant date of the process
EE Posting Date
Date for updating the accounts
EE Reference according to external specification
Usually invoice number of the vendor
The first two entries for a document item (posting key and account
number) define the relevant account and posting side (debit or credit). In
Figure 3.13, these are posting key 31 (credit posting to a vendor account)
and the corresponding account number of the vendor in the SAP system.

Required entry Pressing [Enter] takes you to the next screen (see Figure 3.14). The ven-
fields dor’s payables account controls the selection of the fields for the entry
screen and their ready-for-input status. For entering a vendor item you

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require other fields than for entering a G/L account item. In this exam-ple,
the Business Area field has the Mandatory Entry field status.

Figure 3.13 Incoming Invoice—Initial Screen

Figure 3.14 Incoming Invoice—Vendor Item

After you have entered the vendor item , first enter the posting key of the
document item, which is 40 in this example (debit posting to a G/L
account), and the corresponding account. When you press [Enter], the
system takes you to next screen (see Figure 3.15).

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Figure 3.15 Incoming Invoice—G/L Account Item

You can display the document item, which has been automatically gener-
ated by the SAP system, via the menu path Document • Simulate.

Figure 3.16 Incoming Invoice—Document Display

Figure 3.16 shows the posting from the example, which the system gen-
erates after you click on the Save button. The G/L accounts involved are a
material stock account for goods receipt, the “payables” account

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for invoice receipt, and the typical interim account, “GR/IR clearing
account,” which is usually directly cleared when the invoice receipt is
entered. In addition to Transaction FB01, the SAP system provides you
with further options.

3.6.2 Single-Screen Transaction in FI

Since Release 4.6, accounts payable accounting has provided a new

entry option. In contrast to the general posting, this concept is supposed
to simplify the entry process by displaying all information in one screen.
Furthermore, information, such as posting key, document type, selec-tion
of the tax key, and so on, is predefined and hidden. You can find the new
“single-screen transaction” via the menu path Accounting • Financial
Accounting • Accounts Payable • Posting • Invoice (Trans-action FB60).

Figure 3.17 Incoming Invoice—Single-Screen Transaction

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The tabs contain the following functions:

EE Basic data
This refers to general document data.
EE Payment
Here, you specify data for the payment transactions.
EE Tax
If the invoice contains multiple tax codes and the tax amounts are
supposed to be copied from the invoice, you can enter them here.
EE Details
Here, you specify additional fields for the business partner line, such as
assignment number and business area.
EE Notes
You can define additional notes for the open item. The system assigns
the text to the receivable or payable and not to the complete docu-
ment.
EE Local currency
This tabs appears if postings are made in a foreign currency or if paral-
lel currencies exist in the company code.

Changing the Transactions

If an accounting document is supposed to include multiple vendor items,
you must change to the traditional entry process using the menu path
Environ-ment • Complex Posting. Now you can enter additional vendor
items in the footer. However, you cannot return to the single-screen
transaction from this “complex posting.”

A simplification of the posting transaction provides many benefits for

users who sometimes have to enter incoming invoices in the SAP sys-
tem. When speed is relevant, the fast data entry provides considerable
advantages.

3.6.3 Fast Data Entry

You can find this transaction in the menu path Accounting • Financial
Accounting • Accounts Payable • Posting • IR/GU Fast Entry • Invoice

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(Transaction FB10). This entry option is solely designed to enable a fast

data entry via the keyboard. The system hides information or input fields
that are not absolutely necessary. The predefined settings shown in Fig-
ure 3.18 are configured by the accounts payable accountant at the begin-
ning of a work day and thus don’t have to be made again.

Figure 3.18 Fast Data Entry—Predefined Settings

Pressing [Enter] takes you to next screen, the actual fast entry screen.
Figure 3.19 shows a screen that is populated with a minimum of infor-
mation. You can easily access all field information using the Tab key. The
system displays the vendor item first and then offsetting items including
additional account assignments.

Number of Offsetting Items

The number of offsetting items is not limited to six lines. If they are filled
with values, you can use the Page Down key for scrolling. In total, 999 line
items are available.

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Figure 3.19 Fast Data Entry—Entering Items

The entry transactions described so far, that is, general posting (Transac-
tion FB01), single-screen transaction (FB60), or fast data entry (Transac-
tion FB10), can only be used to a limited extent; the entry transaction in
the MM logistics module may close this gap.

3.6.4 Invoice Verification in MM

In different enterprises, different departments may be responsible for the
logistical invoice verification. This business function can be provided
either in the purchasing department or in accounts payable accounting. In
SAP ERP, the required transaction and the menu path are defined in the
MM module: Logistics • Materials Management • Invoice Verifica-tion •
Document Entry • Add Incoming Invoice (Transaction MIRO).

Particularly if an invoice refers to a previously created purchase order

(with purchase order reference), you can quickly decide on posting and
subsequent payment. Transaction MIRO supports you in identifying price
differences and quantity variances between the purchase order and the
invoice. Furthermore, the system sets payment blocks automatically in
defined cases. This can make sense in the following cases, for example:

EE No goods receipt is available for the invoice receipt.

EE An invoice amount, for example, that is larger than $10,000, has to be
checked by two persons.
EE Spot checks are carried out, for example, for each tenth invoice.

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The example in Figure 3.20 shows an invoice receipt with purchase order
reference. When you enter purchase order number 4500018601, you
need to enter additional information on the amount and quantity.

Figure 3.20 MM—Adding an Incoming Invoice

The Simulate button enables a simulation of the future posting proce-

dure, which is illustrated in Figure 3.21. G/L account 191100 (GR/IR
clearing, external procurement) is posted on the debit side, and the pay-
ables of the vendor account are posted on the credit side.

Figure 3.21 MM—Simulating a Document

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Once incoming invoices have been entered in the SAP system, you can
start the payment process for paying the vendor.

3.7 Automated Payment Transactions

The payment transaction concept refers to the processing of the incoming

and outgoing payments of an enterprise. This specifically includes:

EE Incoming payments via debit memos

EE Outgoing payments via bank transfers or checks
EE Incoming checks with manual check preposting
EE Incoming payments via bank transfers, returned debit memos, and
returned checks

Accounting and You can structure the payment transactions in an enterprise accord-ing to
process view various aspects and issues and separate the individual processes. You
distinguish between the accounting view and the process view. The
accounting view—as usual—differentiates between incoming pay-ments
and outgoing payments. The process view, in contrast, differenti-ates
between incoming and outgoing payment processes. The outgoing
process is usually triggered via a payment run by your company, and the
corresponding information (bank, account, amount, and so on) is defined
by the SAP system and passed on to third parties. This includes bank
transfers and outgoing checks to third parties (outgoing payments) but
also debit memos that are collected by third parties (incoming pay-ments).
The incoming process instead is triggered by third parties, and the
corresponding information is provided from the outside (banks, ven-dors,
customers). This includes bank transfers and incoming checks by third
parties (incoming payments) but also debit memos that you collect from
third parties (outgoing payments). Consequently, SAP’s automatic
payment program manages the outgoing payments of an enterprise but
also processes the outgoing payment process and thus includes both out-
going payments and incoming payments (debit memos). In this context,
the payment program has the following functions:

EE Selection of the due and open items

EE Posting of payment documents (accounting documents)

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 Automated Payment Transactions   3.7

EE Generation of payment lists and logs

EE Generation of payment media (check forms, payment advice notes)

Before you can execute Transaction F110 for the payment program, you
need to implement some basic settings.

3.7.1 Payment Methods in SAP Systems

A payment method in the SAP system defines which procedure (check,

bank transfer, bill of exchange, and so on) is used for payment. The spec-
ifications for a payment method are made during the system configura-
tion at two levels. There are basic settings that depend on the country;
that is, settings for “US” (United States) apply to all company codes with
headquarters in the United States. In addition, there are checks that you
can define individually for each company code and enterprise.

Maintaining the Payment Methods in the Master Record and/or in

an Open Item
You can define payment methods in the master record of a business
partner and in individual items. If you have specified a payment method in
the open item, it overwrites the specification in the master record. A
payment method that is entered in the open item doesn’t have to be
included in the master record. However, the payment method of a payment
run must always be defined either in the master record or in the open item
to have the system include the item in this payment run.

Which specifications from the master record of the business partner are Payment method:
inevitably required is defined for each country. If one of the neces-sary Check (C)

specifications is not provided in the master record, you cannot use this
payment method. For the C payment method (Check), a complete
address must be maintained in the master record. Otherwise, the C pay-
ment method is not valid for this business partner. Furthermore, under
which conditions this payment method can be used is defined in the
individual company codes for each payment method. The following also
applies here: If one required condition is not met, you cannot use this
payment for the respective open item. These defined checks affect the
following specifications:

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EE Minimum and maximum amounts

EE Allowed business partners abroad (country code in the master record)

EE Allowed bank details abroad (country code in the bank master record)

EE Allowed foreign currency

The payment program only selects the payment method for which you
specify a minimum or maximum amount if the payment amount doesn’t
fall below the minimum amount and doesn’t exceed the maximum
amount.

Exception to the Rule

Minimum and maximum amounts don’t apply if the payment method is ex-
plicitly indicated in the open item. In this case, the defined payment method
is also used even if the payment amount falls below the minimum amount
or exceeds the maximum amount.

A brief look at the exception list is sufficient to determine whether a

condition that was met was the cause for not including an item in the
proposal list. The following section now discusses the payment block
reasons.

3.7.2 Payment Block Reasons

A payment block is an indicator that you can use to block accounts or

individual items for payment. The system indicates the payment block in
the master record of the business partner or in the document item. The
standard SAP system provides numerous block reasons, which map why
no payment is supposed to be made in this specific case.

A due open item may be included in the exception list for several rea-
sons. A brief look at the exception list is sufficient to determine why an
item is not included in the proposal list.

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 Automated Payment Transactions 3.7

Note in the Log of the Proposal List

If a payment block is set, the system displays the error message “Account
blocked for payment” or “Item blocked for payment” in the exception list for
the corresponding open item.

You can remove or set payment blocks during the processing of the pay-
ment proposal. However, you cannot remove and set all payment blocks
in a proposal. The restrictions for the respective block reason are defined
in Customizing. For the example in Figure 3.22, it is specified that the V
payment block cannot be removed during the processing of the payment
proposal. If the block reason “ ” (Free for payment) is not selected, the
account cannot be manually blocked in the payment run.

Figure 3.22 Using the Payment Block Reasons

If you have implemented the basic settings for the payment methods and
payment block reasons, you can access the payment program.

3.7.3 Accessing the Payment Program

You access the initial screen of the payment program via the menu path
Accounting • Financial Accounting • Accounts Payable • Periodic
Processing • Pay (Transaction F110).

First, enter the date of the payment run and an identification feature. You
can add a sequential number to the identification feature to distinguish
between different runs on the same date.

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ID and bank The example illustrated in Figure 3.23 displays 01/12/2008 as the day of
communication the execution and the ID of the person responsible, that is, JS2. The
Identification field is provided with a new function and meaning in the
context of bank communication. For detailed information, refer to Chap-ter
6, Bank Accounting.

Figure 3.23 Initial Screen of the Payment Program

To enter the parameters and navigate to the respective tab. You have to
specify the complete company codes (four digits) and separate them by a
comma. In addition to single values, you can enter intervals. No blanks
are allowed between the defined company codes or intervals. The
required payment methods must be indicated without any separa-tors.
The posting date of the next payment must run to check the due date of
the payables. If an item is due on the date of the next payment run, it will
be paid in this payment run. Receivables (debit memos) can generally not
be paid before the baseline date for payment. They are paid once the due
date is reached or expired, independent of when the next payment run is
supposed to be executed. You additionally have to enter the vendors or
customers that the SAP system is supposed to include in this payment
run. This can be done in single values or intervals. The parameters
illustrated in Figure 3.24 consider all posting documents until 01/12/2008
in company code 1000. The payment run is supposed to clear the
payables using a payment document with 01/12/2008 as the posting date.
All due payables of a vendor are supposed to be paid via check or bank
transfer. 10/12/2008 is defined as the date for the next

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payment run; that is, the system selects all items with a due date for net
payment before this date.

Figure 3.24 Parameters of a Payment Run

The Free selection tab navigates you to the entry of further selection cri-
teria. Here, you can define fields at the document level or from the mas-
ter records of the business partners as additional selection criteria . You
enter the name of the database field in the Field Name field. The system
supports the search process for the corresponding field name with the [F4]
search help. If you select the Exclude values field, this payment run
doesn’t include the documents with the corresponding criterion. The
setting in Figure 3.25 doesn’t define any restrictions.

In the payment run, you can define restrictions for the additional log. The
log displays the processing logic of the payment program with the
corresponding level of detail (see Figure 3.26).

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Figure 3.25 Free Selection

Figure 3.26 Additional Log

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 Automated Payment Transactions   3.7

Additional logs should only be used in exceptional cases. The corre-

sponding tab displays the details of the additional log. The system only
creates an additional log for the payment run if at least one of the fol-
lowing checkboxes is selected:

EE Due date check

Defines that the due date check is logged for open items.
EE Payment method selection in all cases
Ensures that the selection of all payment methods and all banks is
documented in the log. You can then use the log to trace the proce-
dure for the payment method selection.
EE Payment method selection if not successful
Defines that the attempted selection of the payment method and banks
is only documented in the log if no allowed payment method or bank
has been found. The log enables you to identify whether cor-rections
have to be implemented in the master record of the business partner or
in the configuration of the payment program.
EE Line items of the payment documents
Ensures that the log outputs all posted documents including the cor-
responding items. In the case of payment proposals, the document
items that the system would generate for the following payment are
output.

The Printout/Data Medium Tab navigates you to the configuration of the

print output of proposal lists, release lists, and checks. For each pay-ment
method, there is a payment medium program that enables you to print
payment forms (see Figure 3.27).

These settings must be saved with the Save button. Then, navigate to the
Status tab. It displays the status message “Parameters have been
entered” (see Figure 3.28).

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Figure 3.27 Output and Data Media Tab

Figure 3.28 Status Message “Parameters have been Entered”

Once all parameters have been entered, you can schedule the payment
proposal.

3.7.4 Payment Proposal

Based on the defined parameters, the SAP system determines the out-
standing payments for the vendor or customer. Here, the generated pay-

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 Automated Payment Transactions 3.7

ment proposal is the first step. For this purpose, click on the
button. The Schedule Proposal dialog box opens (see Figure 3.29).

Figure 3.29 Schedule Proposal Dialog Box

When you select the Start immediately option and press [Enter], the
processing is performed in the foreground. You can retrieve data of this
payment run using the proposal list, which stores a wealth of informa-tion,
for example, an overview of all payments and line items.

At the end of this list, you can find a list of the payment amounts, sorted
by the following criteria:

EE Business areas
EE Countries
EE Currencies
EE Payment methods
EE Banks

The two-level procedure with a proposal list to be processed and a subse-

quent generation of the data medium can also be shortened, if required.
Then, the system generates the payment medium directly without using a
proposal list. The following example illustrates the two-level proce-

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dure. Here, the proposal list is processed first, and then the payment
medium is generated. The status message in Figure 3.30 indicates that
the proposal run created a payment proposal.

Figure 3.30 Status Message “Payment Proposal has been Created”

You can edit the payment proposal via the button.

Task sharing per The system now displays the Accounting clerk dialog box (see Figure
accounting clerk 3.31). If you select All accounting clerks, the system selects all payments
of a payment proposal run for processing. To only process the payments
of the payment proposal that are assigned to a specific accounting clerk,
select the Selected accounting clerk option and enter the correspond-ing
ID. If you want to process all payments that aren’t assigned to an
accounting clerk, select the Selected Accounting Clerk option and don’t
enter any ID.

Task Sharing
Particularly if a large number of vendors and customers are included in a pay-ment
proposal list, it makes sense to use the selection of accounting clerks to enable task
sharing. A prerequisite is that the respective accounting clerks are also stored in the
master data of the subledger account.

If you press the [Enter] key, the system takes you to the overview of the
payment run. The first level displays a list of the individual payment media
and exceptions for each business partner.

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 Automated Payment Transactions 3.7

Figure 3.31 Dialog Box for Selecting the Accounting Clerks

The example shown in Figure 3.32 is not that complex. It refers to the
enterprise, Testcompany, which is not supposed to be paid. The payment
volume of the proposal run is €0.

Figure 3.32 Level of the Individual Payment Media and Exceptions

You can view the corresponding open item if you double-click on a row Clearing of
within the exceptions. At the business partner level, you can see in Fig- customers/
vendors
ure 3.33 that the Testcompany example involves the clearing process of
vendor 2000000030 and customer 1000, that is, from a vendor that is also
a customer.

When you double-click on a line item, the system provides information on Removing the
why this item has been included in the exception list. You can remove payment block

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the payment block here. Then, the item would be included in the actual
payment run. Note that there are also payment blocks that you cannot
remove in the payment proposal.

Figure 3.33 Exception Level of a Business Partner

Temporary Payment Blocks

By double-clicking the line item, you can navigate to the payment informa-
tion of this document item. You can set a payment block or change the
pay-ment method. If you set the payment block , the corresponding open
item is not paid during this payment run. This modification applies to the
specified payment run only. You change neither the original document nor
the master record of the business partner. That means the next payment
run considers this item again.

In the example, the payment proposal determines the balance from

receivables and payables and identifies the exception documented in
Figure 3.34. The payment cannot be made, because in total a debit bal-
ance, that is, a receivable, exists.

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 Automated Payment Transactions 3.7

However, the button enables you to pay the selected item

nevertheless. For this purpose, manually define a payment method
including bank data, analogous to Figure 3.35. In the example, the sys-
tem is supposed to generate a check from bank account 1000 GIRO of
house bank 1000 DEUTSCHE BANK.

Figure 3.34 Exception in the Payment Proposal List

Figure 3.35 Defining Payment Method and Bank Data

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After the changes have been saved, the updated payment proposal list
provides the corresponding information. In the example shown in Figure
3.36, this is the second row, with an amount of €550,000 that has to be
paid. The debit balance in the first row, which is not supposed to be paid,
is then increased by this value.

Figure 3.36 Updated Payment Proposal List

When the processing of the payment proposal list has been completed,
clearing entries and payment media can be generated.

3.7.5 Executing the Payment Run

After you have processed the proposal list, you can schedule the payment
run using the button. The amount of €550,000 is cleared in
the vendor account with an automatically generated payment document.
Accordingly, the status message illustrated in Figure 3.37 changes.

You start the printing of a check by performing an additional manual

step, that is, clicking the button. The clearing transaction is
documented through clearing document 2000000052 in the vendor line
item list shown in Figure 3.38.

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 Automated Payment Transactions 3.7

Figure 3.37 Status Message

Figure 3.38 Vendor Line Item List

Parallel Process
The SAP system creates the clearing document and payment medium in
par-allel and independently of each other. You should consider this aspect
par-ticularly when you reconfigure the payment run. If the Customizing is
set incorrectly, the system may clear items on the credit side without
generating a payment medium subsequently.

In addition to the automated payment run, you can also trigger the pro-
cess manually.

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3.8 Manual Outgoing Payments

The basis of manual outgoing payments are usually payables that exist in
the SAP system. In individual cases, advance payments can also be
made without posted payables. This is referred to as a payments on
account . You access the initial screen of outgoing payments via the menu
path Accounting • Financial Accounting • Accounts Payable • Posting •
Outgoing Payments • Post (Transaction F-53).

Chapter 6, Section 6.5.2, Outgoing Payments, describes in detail similar

business transactions in the context of manually created checks or ad-hoc
payments. The following sections further discuss the complete clearing,
residual item, and partial payment posting procedures. The examples are
based on payables of €11,000 including an input tax of €1,000.

3.8.1 Complete Clearing

For complete clearings, the SAP system generates the screen shown in
Figure 3.39. In the initial screen of the Enter Outgoing Payments transac-
tion, you enter the document header as usual. The input in the Clearing
text field appears for the clearing item in the vendor account. Compared
to the previous document entry, the bank data is new.

Figure 3.39 Outgoing Payments—Initial Screen

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The outgoing payments are implemented through one of the defined Outgoing
house banks. The SAP system maps transactions in this bank account in payments through
the house bank
a G/L account. You can enter the corresponding G/L account number in
the Account field in the Bank data area. You then have to specify the
payment amount and additional data. Additional selections enables you to
include additional selection criteria (amount, document number, and so
on).

The system supports you in specifying the offsetting entry in the ven-dor
account. Consequently, you only need to enter the vendor account and
the K account type (vendor). The SAP system supports you with a list of
the open items that are supposed to be assigned. When you press the [¢]
key, the system opens the next screen, which displays the exist-ing open
items selected by the system in the account (see Figure 3.40). Depending
on the setting in the editing options, you have to assign the corresponding
open items by double-clicking on the payment amount fields. The
example in Figure 3.41 shows the assignment of an open item with an
amount of the outgoing payments of €11,000. The 2% cash dis-count is
not used here.

Figure 3.40 Outgoing Payments—Selecting the Open Items

The entered amount and the assigned amount are identical in the exam- Simulating
ple. Therefore, the document can be posted. You can call the document documents

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overview of the outgoing payments using the Document Overview but-ton.

Only the entered item of the outgoing payments is displayed. You can
view the vendor item, which has been automatically generated by the
system, via the menu path Document • Simulate.

Figure 3.41 Outgoing Payments—Document Overview

Postings in the The objects involved are a vendor from the FI-AP component and the
SAP system general ledger from the FI-GL component. First, the “enter incoming
invoice” activity leads to a credit entry for the “vendor” SAP object. The
SAP system created an automatic entry to the reconciliation account
defined in the vendor master record. The system posted the document
and simultaneously closed the open item with the outgoing payment. The
“payables” G/L account is not cleared, because the SAP system only
stored the balance of the reconciliation account . The actual clearing pro-
cess takes place for the “vendor ” SAP object. The corresponding offset-
ting entry is posted in the G/L account that is defined in the initial screen
(see Figure 3.39). Both documents are linked to each other through a 10-
digit clearing number (in this example, this is the document number of the
payment), as you can see in Figure 3.42.

Tolerance limits for Differences that exceed the tolerance limits for postings may occur in the
difference postings payment transaction. These limits are the tolerances defined by the
accounting clerks and business partners in the SAP system during the
system configuration. This could have been done for several reasons, for
example, because a partial amount was paid (as in the example in the
following section).

148
 Manual Outgoing Payments 3.8

Figure 3.42 Line Item Display after Outgoing Payments

When processing the open items, the following options are available in
such cases:

EE Posting as a residual item

For residual item formations , the system closes the original open item
and simultaneously generates a new open item with the remaining
amount.
EE Posting as a partial payment
In this case, the original open item is not cleared. The SAP system
posts the payment with an invoice reference. For this purpose, it enters
the invoice number in the Invoice Reference field of the pay-ment
items.

3.8.2 Residual Items

In contrast to complete clearings, here a payment amount exists below

the open item. The transaction is nearly the same as for the payment of
the total amount described in Section 3.8.1, Complete Clearing. The ini-
tial screen is populated as shown in Figure 3.43.

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3 Accounts Payable Accounting

Figure 3.43 Outgoing Payments—Initial Screen for the Residual Item Formation

When you press [Enter], the system navigates you to the list of the
selected items. From the processing of the open items, you must go to the
Residual Items tab. In the Residual Items column, you enter the amount
of the residual item . Alternatively, you can copy the remain-ing amount
calculated by the system by double-clicking on the Residual Items field.

In the example, an outgoing payment of €10,500 leads to a residual item

of €280. This is due to the proportionally accepted cash discount amount.

You can either first simulate or directly post the document. However, in
both cases the system outputs the message that the item of the residual
item still has to be corrected. For residual items, the SAP system requires
you to make an entry in the text field of the document item (required entry
field).

150
 Manual Outgoing Payments 3.8

Figure 3.44 Residual Item for Outgoing Payments—List of the Selected Items

Figure 3.45 Outgoing Payments—Residual Item Screen

Then, you can post the document. Figure 3.46 shows the process in the
line item display. The original open item has been cleared, and the sys-
tem has generated a new residual item.

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3 Accounts Payable Accounting

Figure 3.46 Residual Item for Outgoing Payments—Document Overview

In addition to the complete clearing and the described residual item for-
mation, there are further options for posting outgoing payments.

3.8.3 Partial Payment

Differences may occur in a payment transaction for several reasons, for

example, owing to the payment of a partial amount. When processing the
open items, the user can post the outgoing payments as partial pay-ments
in such cases. For partial payments, the original open item is kept, and
the system posts the payment to the vendor account and links it internally
with the open item. To enter a partial payment, you follow the same menu
path as for the residual item formation or for the payment of the total
amount of an invoice. You populate the initial screen in the same way as
for a residual item formation.

Pressing the [Enter] key takes you to the next screen. Now, you first have
to assign the respective invoices to outgoing payment. This can be done
by double-clicking on the corresponding field in the amount column of the
displayed item list (see Figure 3.47). Then, select the Partial Payment tab
(see Figure 3.48).

In the Payment amount column, you enter the amount of the partial pay-
ment. Alternatively, you can double-click on an amount to copy it. Figure
3.49 shows this process in the line item display.

152
 Manual Outgoing Payments 3.8

Figure 3.47 Partial Payment for Outgoing Payments

Figure 3.48 Outgoing Payments—Partial Payment Screen

Figure 3.49 Line Items after a Partial Payment

153
3    Accounts Payable Accounting

The two items are indicated as open and linked to each other with iden-
tical content in the Assignment field. You can evaluate manual or auto-
mated outgoing payment postings—independently of whether they are
implemented as complete clearings, residual items, or partial payments—
with reports in SAP ERP.

3.9 Evaluations in Accounts Payable Accounting

SAP ERP and SAP NetWeaver BW provide a wide range of predefined

evaluations. The information on the following pages merely represents
examples and is only a fraction of the many possibilities available. The
transparency of the due payables enables you to avoid expensive vendor
credits by making the payments including deductions of cash discounts in
time. Of course, a basic prerequisite for this is a sufficient liquidity of the
enterprise. However, before it comes to the payment you must ensure
that the payee is correct.

3.9.1 Confirmation of Critical Modifications

Risk management Of course, an enterprise generally trusts its employees. However, risk
management is supposed to identify and classify risks and initiate pos-
sible countermeasures. Issues in the context of payments need to be
monitored particularly carefully. For example, not every accounting clerk
is authorized to create or modify vendor master data. The same also
applies to the execution of the actual payment program and the sub-
sequent transfer of the payment medium to the bank. Task sharing in the
entire business process is useful here and reduces the possibility of
fraudulent actions.

In this context, SAP ERP provides several alternatives of security

checking principles requiring at least two persons. For example,
Transaction FK09 via the menu path Accounting • Financial Accounting •
Accounts Payable • Master Data • Confirmation of Change • List requires a
confirmation of a second person when defined “sensitive” fields in the
vendor master record are modified. The SAP system blocks the vendor
for payment until the modifications have been confirmed. The selection

154
 Evaluations in Accounts Payable Accounting 3.9

screen shown in Figure 3.50 enables you to select the vendors that still
need to be confirmed.

Figure 3.50 Displaying/Confirming Critical Modifications

When you click on the button, the system executes the selection run
and displays the results list from Figure 3.51.

Figure 3.51 Overview of Critical Modifications

This list indicates that numerous master record changes still have to be
confirmed. The confirmation date indicates the date from which this
process step is pending.

155
3 Accounts Payable Accounting

Bank and Account Number

Information on the bank or account number is particularly well suited to
impose a security checking principle requiring at least two persons. How-
ever, because this data is maintained at the client level and because
multiple company codes in the SAP system may share the master data,
you have to pay attention to potential interactions. For example, if an
accounting clerk who is responsible for enterprise A changes the bank
details of a vendor, this modification causes a temporary payment block for
all other company codes at the client level.

The example in Figure 3.52 shows the detailed status of a master record
that has not been confirmed yet. The Changes to Sensitive Fields but-ton
displays the details before and after the modification of the master record.
Based on this information, the modification can be confirmed or rejected.

Figure 3.52 Confirming Details

In addition to maintaining vendor master data, you can also list payables
in the open item due date analysis listed according to different blocks.

3.9.2 Open Item Due Date Analysis

This analysis is supposed to map the payables structure of an enterprise
in sorted lists within periods. This enables you to view the expected
outgoing liquidity in advance. The menu path Accounting • Financial
Accounting • Accounts Payable • Information System • Reports for
Accounts Payable Accounting • Vendor Items • Open Items Due Date
Analysis first takes you to a selection of the company codes that are
supposed to be considered on a freely selectable key date. In the exam-
ple in Figure 3.53, the payables of company code 1000 that exist on
04/10/2008 are supposed to be selected.

156
 Evaluations in Accounts Payable Accounting 3.9

Figure 3.53 Selection for the Open Item Due Date Analysis

The result of this selection is illustrated in Figure 3.54. The drill-down Analysis of the
report shows a sorted list with intervals of 30 days on the selected key liquidity
requirement
date. The result includes payables that are already due (past) or items
that will be due in the future (not due). This indicates that a considerable
liquidity requirement of about €2 million already exists for a short-term
period of 0 to 30 days.

Figure 3.54 Performing a Due Date Analysis

157
3 Accounts Payable Accounting

You can better analyze these values using the navigation within the drill-
down report. Figure 3.55 illustrates a drill-down to the payables that are
due to vendor 1000 (C.E.B. Berlin). Here, the screen is nearly identical to
the general overview, because the major part of the payables is due
within 0 to 30 days.

Figure 3.55 Drill-Down to a Vendor

At this point it is useful to navigate to the line items of the vendor using
the report-to-report interface to view at invoice level whether this huge
amount is made up of multiple items or to view the underlying deliver-ies
and services. If this flexible and versatile report is not sufficient, you can
also use the vendor information system.

3.9.3 Vendor Information System

The vendor information system is a kind of data cube that is filled with up-
to-date information at regular intervals. You can view, rotate, and

158
 Evaluations in Accounts Payable Accounting 3.9

turn this cube from different perspectives. Consequently, the evalua-tions

that are stored and structured according to topics in this cube are
considerably well suited for analyses. In the SAP system, you can access
the vendor information system via the menu path Accounting • Finan-cial
Accounting • Accounts Payable • Information System • Tools • Show
Evaluation.

The data cube of the vendor information system is static and always
refers to a specific point in time. Via the menu bar entry, Extras • Day/
Time On, you can display the creation time. The evaluations don’t con-
sider the posting procedures after this point in time. You therefore need to
perform updates at regular intervals. The following sections describe the
due date analysis as an example from the three evaluations shown in
Figure 3.56.

Figure 3.56 Overview of the Vendor Information System

You can access the due date analysis via the following views:

EE Company code
EE Business area
EE Country

159
3 Accounts Payable Accounting

EE Planning group
EE Reconciliation account

The fixed, defined data cube provides these dimensions as standard eval-
uations. The example that is illustrated in Figure 3.57 uses the company
code as the display format.

A list of the company codes that exist in the system including the respec-
tive payments that are currently due or will be due in the future maps the
structures and may indicate faulty processes within a group with
worldwide operations.

Figure 3.57 Due Date Analysis per Company Code

160
 Conclusion
3.1
0

If the due (to be paid) proportion of the total open item balance is dispro-
portionally high, this may be due to a poorly structured invoice receipt
process. Figure 3.58 illustrates an example of a demo system in which the
total open item balance is due as of company code IDES Australia. This is
based on the fact that no new incoming invoices with a date of required
payment are entered in this test company code, and outgoing payments
are not made for older invoices. In contrast, some items are not yet due
for the second company code on top, Company 1000. With a double-click
you can navigate to the display shown in Figure 3.58. This view allows for
analyses per vendor and provides subsequent drill-down options to the
vendor’s line items.

Overall, the evaluations for critical master record modifications, the open
item due date analysis, or the vendor information system provide useful
support for the daily work of the accounts payable accountant.

Figure 3.58 Due Date Analysis of the Vendors in a Company Code

3.10 Conclusion

The core process of accounts payable accounting includes efficient data

entry and posting of incoming invoices. Depending on in which depart-

161
3    Accounts Payable Accounting

ment this process step is performed and depending on the structure of the
invoices, different SAP transactions are used. The next process step
involves manual or automated outgoing payments. In particular, the two-
level procedure with the proposal run enables you to obtain a good
overview of the outstanding invoices. The necessary evaluations that
provide transparency for future liquidity requirements for outgoing
payments round off accounts payable accounting.

162
Index

A Account type, 66, 147, 288, 555

allowed, 66
Account Accrual, 409
dun, 224 Accrual/deferral posting, 555
select, 224 Accrual Engine, 29, 409, 415, 569
Account assignment, 287 Accrual object
automatic, 555 create, 416
Account assignment category A, 297 define, 416
Account assignment model, 78, 79, 80, display, 418
555 group, 418
create, 80 Accruals and deferrals, 101
entry screen, 81 deferred expenses, 101
select, 82 prepaid expenses, 101
Account control, 170 Accumulated depreciation account, 46
Account currency, 54 Acquisition and production costs (APCs),
Account determination, 272, 276, 296, 446
438 Acquisition posting, 289, 293
Account determination key, 45 Activity type, 555
Account group, 47, 50, 168, 555 Additional account assignment, 46, 70,
Accounting, 39, 40 Accounting 74, 456, 555
area Address data, 547
external, 39 Ad hoc payment, 340
internal, 39 Adjustment account, 469
Accounting clerk, 148 Advance payments, 146
Accounting data, 41 Advance return for tax on sales/
Accounting document, 126 purchases, 517, 522
Account maintenance, 49 Alternative payer, 171
Account management, 172 Amount, 69, 70
Account number, 42, 69, 70, 75, 122 Amount insured, 178
alternative, 56 Append PDF, 204
Accounts payable accounting, 72, 105, Application toolbar, 538
106, 125, 148 Approval
evaluation, 154 overview, 347
evaluations, 564 Approval level, 346
master data, 563 Asset, 269, 270
Accounts receivable accounting, 45, 71, decrease in value, 301
163, 166 invoice receipt, 299
evaluation, 236 reference date, 291
evaluations, 566 transfer, 310
master data, 565 Asset accounting, 45, 72, 261, 262, 263,
Accounts Receivable Info System, 243 450
Account stock, 63 business transactions, 287, 567

581
Index

evaluations, 567 Authorization management, 49

master data, 566 Automatic entry to reconciliation
Asset Accounting account, 99, 148 Availability
business transactions, 287 check, 186
closing, 421
evaluation, 314
Asset acquisition, 45, 288, 290, 293 B
clearing account, 295 integrated
with FI-AP, 289 integrated with Balance carryforward, 523, 526, 556,
MM, 297 572
Asset balance, 314, 315 Balance confirmation, 504
Asset class, 271, 272, 276, 555 Balance display, 524
Asset Explorer, 293, 429 Balance interest calculation, 57
planned value, 305 Balance sheet, 47, 101,
posted value, 305 Balance sheet account, 47, 51, 100,
Asset history sheet, 450 Balance sheet account valuation, 556
Asset history sheet group, 287 Balance sheet adjustment, 556
Asset inventory, 30, 430, 432 Balance sheet item, 41, 271
Asset master data Balance sheet key date, 101
change, 282 Balance sheet preparation, 453
similar assets, 280 Balance sheet supplement, 500
time-dependent data, 277 Balance sheet version, 271
Asset master record, 275, 293 Bank
block, 285 create, 327
create, 275 Bank accounting, 323, 324, 567
insurance, 279 evaluations, 568
multiple creation, 281 master data, 567
origin, 279 Bank charge, 357
Asset number, 290 Bank charges, 359
Asset retirement, 305 Bank data
complete or partial retirement, 305 manual transfer, 326, 328, 330
with or without a customer, 305 with Bank master data, 556 Bank
or without revenue, 305 selection, 354
Assets, 101, 383 Bank statement
Asset subnumber, 274, 284 automation, 357
Asset to vendor, 289 import, 352
Asset transaction, 287, 437 process, 332, 351
enter, 302, 449 processing, 568
Asset transfer, 310 Bank statement monitor, 351
Asset under construction (AuC), 270, Bank type, 171
272, 301, 422, 571 Assignment, 66 Baseline date, 556
Batch input session, 372, 413, 520
Assignment field, 555 Batch monitoring, 344 Billing, 183
Audit trail, 401
Authorization, 173 Bill of exchange, 556
Authorization concept, 533 Black list, 192
Authorization group, 515 Blocked orders, 192

582
 Index

Blocking key, 174, 177 Check deposit transaction, 369, 568

Book depreciation, 263 Checklist, 509
Books of original entry, 98 Check posting, 356
Branch account, 556 Check register, 380
Business area, 39, 43, 556 Check view, 340
Business area balance sheet, 312 Claims, 383
Business partner, 148 Clearing, 556
Business partner’s bank information, automatic, 392
329 Clearing account, 296
Business success, 44 Clearing document, 346
Business to Business (B2B), 165 Clearing number, 148
Business to Consumer (B2C), 165 Clearing text, 146
Business transaction, 63 Clerk
select, 362 accounting, 115, 177
dunning, 115, 177
Client, 39, 42, 166, 534, 536, 557
C Client-server model, 22
Closing operations, 383, 568
Calculation of depreciation, 266 Closing procedure document, 573
Capital, 101 Collection group, 259
Capital and reserves, 101 Collection strategy, 209
Capital investment order, 270 Collective processing, 60
Capitalization, 298 Command field, 537, 540, 552
Capitalization amount, 288 Commitment, 298
Cash discount amount, 288 Communication with authorities, 521
Cash document, 74 Company code, 39, 42, 68, 166, 263,
Cash journal, 359, 369, 568 connection 557
to the general ledger, 362 select, 360 Company code segment, 53
Complaint, 200
Cash management and forecast, 377 Complete clearing, 146
Cash receipt, 184 Computer and telecom integration (CTI),
Catch-up method, 450 214
Central block, 179 Confirmation printout, 365
Change document, 53 Consolidated financial statements, 85
Change documents, 282 Contract accounting, 165
Change in depreciation, 268 Control, 44
Chart of accounts, 40, 42, 43, 100, , Controlling, 39, 40, 44, 46, 269
263, 556 Controlling area, 39, 42, 44
operating, 559 CO object, 46, 269 Copying
Chart of accounts area, 48 procedure, 99 Correspondence, 106,
Chart of accounts list, 42 Chart 166, 175, 557 Cost accounting, 44,
of accounts segment, 49 Chart 262, 268
of depreciation, 263, 266 Cost and activity accounting, 39, 40, 42
Check, 369 Cost budget, 44
country specifics, 370 Cost center, 44, 268, 557
Check deposit list, 372 Cost center manager, 430
edit, 371 Cost element, 557

583
Index

primary, 46, 560 Customer payment history, 241

secondary, 561 Customizing, 41
Cost-of-sales accounting, 93
Costs, 46
Country-specific chart of accounts, 557 D
Credit agency, 189
Credit exposure, 191 Data medium
Credit limit check, 185 send, 350
Credit limit utilization, 254 Day in arrear, 242
Credit line Days sales outstanding (DSO), 164, 185,
monitor, 185, 254, 565 244
Credit manager, 190 Debit memo procedure, 166
Credit profile, 188 Decrease in value, 46
Critical modification, 154 Deductible, 178
Currency, 64, 66 Deduction of cash discount, 154, 288
Currency analysis, 249 Defaults, 548
country, 250 Default values, 547, 549
customer, 250 Deferral, 409 Deferred
Currency key, 59 income, 384 Deletion
Current assets, 101, 383 flag, 181
Customer, 105, 163, 165 Delta depreciation area, 318
create, 168 Depreciation, 46, 265, 267, 269, 301,
valuation, 212 422, 423
Customer account, 167 cost-accounting, 269
Customer analysis, 257 ordinary, 301
Customer balances, 239 ordinary depreciation, 436
Customer contact unplanned, 301, 436
create, 217 Depreciation area, 46, 263, 264, 265,
Customer invoice, 333 266, 267, 269, 280, 287, 438
enter, 333 derived, 268
Customer line item display, 454 real, 268
Customer list, 236 Depreciation costs, 270
Customer master data Depreciation key, 263, 293
address data, 169 Depreciation parameters, 450
bank details, 171 Depreciation posting run, 30, 436, 570
branch, 173 in the background, 443
central maintenance, 167 printer, 443 schedule,
clearing with vendor, 170 444
head office, 173 Depreciation values, 267
language, 170 Detailed payment list, 345
maintenance, 167 Digital signature, 349
terms of payment, 173 Directory of unposted assets, 316
Customer master record, 222 Display field, 544
archive, 180 Disposition of funds, 383
block, 179 Dispute case, 198, 200
Customer number, 168 credit memo, 206

584
 Index

display, 203 Dunning level, 176, 177, 209, 218, 235

log function, 204 Dunning notice, 176
notes, 204 change, 228
overview, 255 Dunning print, 220, 225, 232
residual item, 207 Dunning printout, 235
Document, 63 Dunning procedure, 175, 176, 209, 218
country-specific requirements, 388 Dunning procedure by mail, 217 Dunning
display, 76, 355 procedure by telephone, 184, 209, 565
parked, 386, 559, 568
post, 76, 124 storage, Dunning program, 175, 218, 220
66 accounting clerk, 226
Document change rule, 557 additional log, 229
Document currency, 77 basic data, 220
Document date, 65 block reasons, 229
Document entry, 74 error handling, 231
Document flow, 388 initial screen, 219
Document header, 64 print, 234
Document header text, 65 selection criteria, 221
Document item, 69, 71, 122, 124 Dunning proposal, 177, 218, 223, 224,
Document layout, 63 225, 227
Document management, 64 change, 228
Document number, 63, 66, 68, 74 changes, 229
Document overview, 148, 399 create, 224
Document principle, 21, 40, 63, 557 delete, 231
Document split list, 224
receivables posting, 88 process, 226
Document splitting, 87 Dunning run, 220, 221
Document type, 64, 66, 67, 74, 288, log, 231
290, 557 Dunning selection, 225
Down payment, 177, 287
Down payment request, 63, 177
Drill-down reporting, 557 E
DSO analysis, 244
Due date analysis, 156, 161 Easy Access menu, 540, 544
Dunning, 166, 558 Editing options, 78, 147
worklist, 210 Electronic bill presentment and payment
Dunning block, 177 (EBPP), 197
block reasons, 229 Electronic data interchange (EDI), 193
temporary, 229 Electronic dunning, 235
Dunning date, 220, 235 Electronic record, 200
Dunning flow, 219 Electronic tax return for tax on sales/
Dunning frequency, 176 purchases, 30
Dunning interest, 233 E message type, 552
Dunning interval, 176, 218 End-of-day processing, 21
Dunning letter, 218, 220, 232 End of fiscal year, 47
print, 232 Enhancement package, 33, 93
sample print, 232 Enjoy transaction, 74, 76, 78, 125, 126

585
Index

Enter available amounts for payment Flat-rate value adjustment, 457

program, 332 manual, 457
Enterprise asset management (EAM), Foreign currency, 126
269, 279 Foreign currency document, 251
Entry tool, 78 Foreign currency table, 467
Equipment Management, 279 Foreign currency valuation, 465, 571
Equivalence number, 80 Four-column journal, 100
Error message, 552 Functional area, 558
Error session, 21 Funds utilization, 101
European Credit Transfer (ECT), 328
European Direct Debit (EDD), 328
Evaluation, 236 G
Evaluations
Bank Accounting, 376 General ledger, 39, 41, 45, 46, 47, 148,
Exception list, 132, 141, 177 267, 563
Exchange rate, 64 evaluations, 98, 563
Exchange rate effects, 249 master data, 563
Exchange rate maintenance, 30 German Commercial Code (HGB), 262
Exchange rate type, 558 German GAAP, 92
Expense account posting, 74 G/L account, 47, 124, 147, 325
account currency, 54 archive,
62
F block, 62
change, 59
Fast close, 383, 384 line item display, 55
Fast data entry, 77, 78 maintain, 49
Favorites, 541 managing open items, 60
Fictitious posting, 505 open item management, 55
Field help, 549, 550 G/L account document, 74
Field history, 546 G/L account fast entry, 558
Field information G/L accounting, 40
dynamic, 412 G/L account item, 123
Field status, 558 enter, 374
Field status group, 57 G/L account master data, 48
File Display, 350 change, 59
Financial Accounting, 19, 28, 39, 40, G/L account master record, 42, 558 G/L
46, 64 account posting, 72, 74, 75, 76, 99, 402
Financial statement, 383, 404
Financial statement version, 558 enter, 75
assets side, 58 Glossary, 553
liabilities side, 59 Goods issue, 45, 183
Financial Supply Chain Management Goods issue/outgoing invoices, 45
(FSCM), 28, 185 Goods movement, 46
Fixed asset, 264 Goods receipt, 124, 298
Fixed assets, 101, 261, 383 non-valuated, 299
structuring, 272 valuated, 298

586
 Index

Goods receipt/invoice receipt, 45 Input help, 402

Governance, Risk, and Compliance Input tax, 515, 559
(GRC), 28 Insolvency, 454
Grace days, 176, 218 Institution number, 178
Graphical user interface (GUI), 22 Insurance, 177
GR/IR account, 45 Intangible asset, 262
GR/IR clearing account, 125, 389, 555, Integration, 26, 40, 262, 269, 289
558, 569 information, 27
Gross procedure, 288, 320 persons, 26
Group, 558 processes, 27
Group account number, 51 Intercompany reconciliation, 29, 486,
Group asset, 271, 274 571
Group chart of accounts, 558 Interest, 269, 438
Interest calculation, 474, 571
Interest calculation frequency, 57
H Interest calculation indicator, 57
Interest indicator, 57
Harmonization, 91 Internal activity, 426
Header data Internal audit, 381
enter, 334, 338 Internal order, 559
Hold data, 544 International Accounting Standards
House bank, 147, 324 (IAS), 262
process, 325 International Bank Account Number
HRPAY document, 398 (IBAN), 329
Inventory number, 276 Investment
center, 44 Investment framework, 44
I Investment Management (IM), 270
Investment support measure, 263, 287
IAS, 263 Invoice receipt, 298
IBAN, 329
enter, 331 Invoice verification, 299, 559
IFRS, 85, 261, 386, 401 Item
I message type, 552 dun, 224
Incoming invoice, 122, 123, 124, 125 enter, 371
enter, 148
simulate, 300
Incoming invoices J
enter, 564
Incoming orders, 182 Journal, 98, 100
Incoming payment, 166 four-column journal, 100
Incoming payments, 130, 332 multiple-column journal, 100
Index series, 438 single-column journal, 99
Indirect quotation, 467 three-column journal, 99
Individual value adjustment, 453 two-column journal, 99
flat rate, 457 Journalizing, 41
Information, 552 Journal sheet, 100

587
Index

K Mode, 537, 543

Module, 533
Key, 168
Key date valuation, 394
N
L Net worth tax, 279
New fiscal year, 47
Leasing management, 280 New general ledger, 29, 47, 84, 318
Liabilities, 101, overview, 84
Liabilities and owner’s equity, 383 Noted item, 559
Line items, 55 Notes, 126
Liquidity, 324, 332 Note to payee, 355
Liquidity forecast, 376 Number assignment, 49
Local currency, 560 Number range, 68, 74, 288, 559
Local GAAP, 318
Lockbox processing, 559
Logoff, 554 O
Logon procedure, 536
Logon screen, 534, 536 OI management, 390, 559
Loss, 100 OI valuation, 559
Loss on receivables, 164 One-time account, 117, 167, 559
Low-value assets, 272 One-time vendor, 117
Online integration, 266
Opening balance, 101
M Open item, 156
Open items
Main asset number, 271 process, 336
Maintaining G/L account, 49, 53 Operating concern, 559
Maintenance language, 52 Optional entry field, 544
Manual clearing, 392 Order
Master data, 25, 47, 106, 166, 271, 324 create, 186
archive, 62 Organizational structures, 262
credit management, 189 Origin of funds, 101
Material number, 46 Outgoing payments, 130, 146, 148, 152,
Materials management, 45, 72, 107, 336
148, 262, 289, 390 bank data, 146
Material stock account, 46, 124 document header, 146
Material withdrawal, 46 enter, 146
Menu bar, 537 initial screen, 146
Menu tree, 538, 541 manual, 146
Messages, 538, 551 selection criteria, 147
Mickey Mouse model, 93 Output tax, 515, 559
Microsoft Excel, 23 Outside capital, 101, 384
Microsoft Office integration, 23 Overdue item, 247
Minimum number of days in arrears, 176 Overhead Cost Management, 25

588
 Index

P Payments
final approval, 349
Parallel accounting, 386 merge, 343
Parallel financial reporting, 85, 92, 318 Payment term, 69, 74
Parameters, 549 Payment transactions, 126, 130, 171,
Partial amount, 148, 152 173, 332, 564, 567
Partial payment, 149, 152 accounting view, 130
Partial transfer, 312 Partner differences, 148
bank type, 111, 171 process view, 130
Passwords, 535 Payables, Payroll posting document, 399
105, 124, 146 Payables Payroll results, 397
account, 122 Payment, 147, Performance, 484
148, 149, 166 Period control, 511, 572
withhold, 347 Period control method, 293
Payment amount, 147, 152 Periodic accruals/deferrals, 409
Payment block, 132, 142, 174 Periodic posting run for APC values, 30
Payment by check, 336 Personal value range, 290
Payment deduction, 200 P&L account, 47, 100,
clarify, 565 Planning, 39, 44
Payment differences, 334 Plant maintenance, 269
Payment history, 173 P&L profit and loss statement, 47
Payment method, 114, 131, 132, 142, P&L statement account, 51
174 Portal role, 345
Payment monitoring, 344 Posting, 63
Payment on account, 146, 335 cross-company code, 557
Payment process manual check, 479
outgoing, 130 Posting a parked document, 387
Payment program, 106, 130, 133, 166, Posting code currency, 560
332, 560 Posting date, 65
access, 133 Posting items, 64
additional log, 135, 137 Posting key, 66, 69, 70, 71, 72, 73, 74,
amounts, 132 75, 122, 123, 560
block reasons, 132 customer, 71
determining the due date, 134 vendor, 72
free selections, 135 output, general ledger, 72
137 Posting list, 420
parameter, 134 Posting method, 353
payment forms, 137 Posting period, 65
payment medium program, 137 block, 485
proposal list, 139 Posting period variant, 560
selection criteria, 135 Posting to asset balance sheet
Payment proposal account periodic, 267
accounting clerk, 140 Postprocessing
process, 133 bank charges, 357
schedule, 138 bank selection, 354
Payment request, 177 check posting, 356
Payment run, 135, 140, 144, 342 completed, 359

589
Index

overview, 355 Reconciliation account, 45, 47, 55, 60,

procedure, 352 112, 148, 172, 296, 456, 560
Prepaid/deferred items, 384 Reconciliation measure, 479, 571
Prepaid expenses, 384 Recurring entry, 560
Principle of dual control, 346, 349 Recurring entry document, 409, 410,
Principles 413, 569
generally accepted principles of create, 410
computer-assisted accounting Reference, 66
systems (GAPCAS), 64 Reference date, 293
Probabilities of occurrence, 401 Reference document, 560
Process cost, 164 Replacement value, 438
Product costing, 25 Report
Production order, 46 RAGITT00, 20
Production planning, 46 RFBILA00, 20
Profit, 100 RFBILA10, 85
Profitability Analysis, 25 SAPF124, 296
Profitability segment, 560 SAPF181, 288, 320
Profit and loss statement (P&L), 41, 47 Reporting, 516
Profit center, 43, 44, 560 Report Painter, 406, 408, 561
Promise to pay, 215 Reports, 544
Proposal list, 224 Report tree, 561
Proposal run, 224, 463 Report variant, 561
Provision, 401 Required entry field, 544
Provision history sheet, 404, 408 Reserves for special depreciation, 268
Provision posting, 86 Residual item, 149, 150
Prudence concept, 453 Residual item formation, 149, 152
Purchase order, 297, 298, 299 Resources, 383
Purchasing, 107 Retained earnings account, 527
Purchasing organization, 560 Revaluation, 438 Reversal
Purchasing process, 45 posting, 366
Reversal reason
select, 367
Q Revision information, 400
Risk class, 212
Quantity management, 277 Run schedule, 410
Runtime environment, 27

R
S
Rating, 189
Real-time processing, 19, 21, 40, 41 Sales, 185
Receivable Sales order, 100, 186
process, 213 create, 186
Receivables management, 30, 164, 184 Sales organization, 561
Receivable valuation, 384 Sales process, 45
Reclassification, 498, 572 Sample account, 50

590
 Index

Sample charts of depreciation, 263 Special G/L transaction, 73, 176, 455
Sample posting, 464 Special ledger, 96
SAP application menu, 23 Special period, 561
SAP authorization concept, 386 Start of fiscal year, 47
SAP Bank Communication Management, Statistics, 39, 40
30, 324, 341, 568 Status bar, 538, 543, 545
SAP Biller Direct, 193 Status change history, 349
SAP Collections Management, 209, 258 Stockholders’ equity, 384
SAP component, 24 Store, 553
SAP Controlling, 25, 28, 268, 442 Structuring fixed assets, 271
SAP Credit Management, 185, 254 Subaccount, 325
SAP Dispute Management, 255 Subcomponent, 533
SAP ERP, 26 Subledger, 47, 263
SAP ERP 6.0 Subledger account, 99, 105, 163, 378
maintenance strategy, 35 Subnumbers, 271
new features, 29 Summarization, 441
release upgrade, 32 Summary data, 63
SAP ERP Financials, SWIFT code, 327, 561
27 SAP ERP HCM, System configuration, 41, 266
397 SAP Library, 553 System messages, 545
SAP NetWeaver, 26 System status, 34
SAP NetWeaver BI, 102, 236, 376
SAP R/2, 22
SAP R/3, 22, 26, 85 T
SAP RF, 19
SAP Treasury and Risk Management, 28 Tab page, 24
SD, 166 Tangible fixed asset, 261
Seasonal business, 191 Target asset, 312
Segment balance sheet, 89 Tax category, 59
Segment information, 87 Tax code, 126, 561
Self-service, 30, 195 Tax depreciation, 263
Sending asset, 312 Tax on sales/purchases, 515, 572
SEPA, 323, 328 Tax on sales/purchases group, 517
Session, 552 Tax payable account, 518
Set data, 544 TCODE, 540
Settlement rule, 426 Term of payment, 173, 561
Single-column journal, 98 Three-column journal, 99
Single document posting, 40 Title bar, 537
Single payment, 175 Tolerance, 148
Single-screen transaction, 74, 76 group, 113, 173
Small subledger accounting, 360 limits, 148
Smoothing method, 450 Toolbar, 536, 537, 543
Solution Browser, 31 Transaction
Sort key, 56, 172 ABZON, 295, 436
Source of funds, 383 AS01, 275
Special G/L indicator, 73, 561 AS02, 282

591
Index

AS11, 284 Transaction code, 20, 539 Transaction

BIC, 327 currency, 466, 562 Transaction data,
BNK_APP, 346, 349 271 Transaction figure, 41, 483
BNK_MONI, 348 Transaction type, 263, 287, 291, 303,
BNL_MONI, 344 404
F-02, 74, 78, 82
F-28, 333 Transaction type group, 287
F-58, 337 Transfer, 310
F-91, 296 salaries and wages, 397
F110, 131, 342 Transfer variant, 312
FB01, 20, 122, 125, 128 Treasury, 324
FB02, 20
FB03, 21, 397
FB10, 127, 128 U
FB50, 77, 85
FB50L, 85 UK-GAAP, 92
FB60, 128, 336 Underpayment, 334
FB70, 333 Update info system, 252
FBCJ, 369 User, 533, 534, 535
FD01, 21 User interface, 536
FD02, 21 User master record, 534, 536, 544, 545,
FD03, 21 546
FEBA_BANK_STATEMENT, 353 U.S. GAAP, 303, 307, 318, 386, 401
FF_5, 351 Utilization of funds, 101
FF68, 370
FIBHU, 325
FIBLFFP, 340 V
FK01, 21
FK02, 21, 328 Valuation, 264, 562
FK03, 21 parallel, 264
FK09, 154 Valuation parameters, 266
FTE_BSM, 351 Valuation run, 460
GRR2, 407 execute, 463
GRR3, 407 maintain parameters, 461
KS01, 21 release, 462
KS02, 21 selection, 462
KS03, 21 Value adjustment, 453, 458, 570
MIRO, 128 Value date, 374
OB53, 527 Value flows, 45
OB_GLACC12, 60 Vendor, 106, 148
RFBILA10, 405 Vendor account, 122, 146, 152
SAPF101, 499 create, 108
SAPFGVTR, 526 Vendor information system, 158, 159
SM30, 330 Vendor invoice, 424
SM35, 373 Vendor item, 122, 123, 126, 148
TB01, 122 Vendor master data, 106
VA01, 186 address data, 108

592
 Index

authorizations, 112 W message type, 552

bank details, 110 Working capital, 164
clearing with customer, 110 Worklist, 30, 562
language, 109
Vendor master record, 45, 562
block, 116 X
blocking key, 114
dunning block, 115 XML payment format, 328
dunning level, 115
dunning procedure, 115
payment terms, 113 Y
Vendor net procedure, 288, 562
Year-end closing, 384

W
Warning message, 552
Window dressing, 208

593