Accounts Receivables

Step 1: - Define Customer A/c Groups (OBD2)

Click on “New Entries”
Account Group : NCDG (Max 4 characters)
Group Name : NCLC Customer Distributors Group
Do not select “One-time account”
One-time account: -
1. This is related to One-time customer. Means only one Customer transaction for whole life
time of business.
2. If we are creating one-time customer a/c, we have to select this One-time a/c field.
Click on “Save”
Create “New Request”
Short description : Accounts Receivables “Enter” & “Save”.

Step 2: - Define Number Range for Customer Account Groups (XDN1)

Click on “Change Intervals”
Click on “Insert Intervals”
Give interval information
Click on “Enter” & “Save”

Step 3: - Assign Number Ranges to Customer Account Groups (OBAR)

Click on “Position”
Account Group : NCDG (NCLC Customer Distributors Group)
Number Range : 29
Click on “Save”

Step 4: - Define Tolerance for Vendors/Customers (OBA3)

Click on “New Entries”
Company Code : NCLC
Tolerance Group : Keep this field as blank
Description : Tolerance for Accounts Receivables
Save & Enter
Step 5: - Define Number Range for Customer Document types (OBA7)
Click on “Position”
Document Type : DA (Customer document)
Double Click on “DA”
Click on “Number Range Information”
Company code : NCLC
Click on “Change Intervals”
Click on “Insert Interval”
Click on “Save”

Step 6: - Create Sundry Debtors GL + Reconciliation A/c (FS00)

Click on “Create new”
GL A/c number : 200020
Company code : NCLC
Go to “Type description” tab
Account Group : Assets
Select “Balance Sheet Account”
Short text : Sundry Debtors A/c
Long text : Sundry Debtors account
Go to “Control Data” tab
Account Currency : INR (Indian Rupees)
Note: - Do not select “Only Balances in Local Currency”
Re-Conciliation A/c Type : Customers (D)
Select “Line item display”
Sort key : 031 (Customer Number)
Go to “Bank/Interest” tab
Field status group : G067 (Re-conciliation accounts)
Enter & Save
Step 7: - Create Sales Revenue Account (FS00)
Copy any Income a/c
Change GL A/c : 300010
Short text : Sales Revenue A/c
Long text : Sales Revenue Account
Enter & Save

Step 8: - Create Customer Master Record (FD01)

Account Group : CSK7 Customer Distributors Group
Customer : Leave this as blank
Company code : NCLC
Click on “Enter”
Name : Jayasree Cement Suppliers.
Fill Full Address & Go to “Payment Transactions”
Bank details
Country : IN
Bank Key : HDFC
Bank A/c no : 5100100100
A/c Holder Name : Jayasree Cement Suppliers
Click on “Company Code data”
Accounting Information
Reconciliation A/c : 200020 (Sundry Debtors)
Sort Key : 031 (Customer Number)
Cash management group : E2 (Domestic Customers)
Click on “Save”
Step 9: - Post Customer Invoice (FB70)
Customer Number : 1000000
Invoice date :
Amount : 1,00,000
GL A/c : 300010 (Customer Revenue a/c)
Amount : 1,00,000 “Enter” & “Save”
Step 10: - Check Customer Open Items (FBL5N)
Execute FBL5N
Customer no from : 1000000 to : 1000001
Company code : CSK7
Click on “Execute”
Step 11: - Check Customer Balances (FD10N)
Customer : 1000000
Company code : CSK7
Fiscal Year : 2021
Click on “Execute”
Step 12: - Post Customer Incoming Payment (F-28)
Document date : Type : Company code : Currency :

Bank data
Account : 200000
Amount : XXXXXXX
Open item selection
Account (Customer) : 1000000
Account type : D (Customer)
Click on “Process Open items”
Select “Line item” & Click on “Save”
Posting Keys: -
01 - Debit Customer
15 - Credit Customer
Step 13: - Change Customer Details (FD02)
Customer : 1000000
Company code : CSK7 press “Enter”
Do changes what is required & Save
To Make Customer Partial Payment (F-28)
Partial Payment: - Incase of partial payment, the original invoice will be shown as open, until it is
fully paid.
Document date : DDMMYYYY
Company code : CSK7
Go to Bank details
Account no : 200000 (HDFC Bank)
Amount : Partial amount (even one rupee also)
Go to “Open item section”
Open item a/c no : 1000000 (Jayasree Cement Suppliers)
Click on “Process Open items”
Go to “Partial Payment” tab
Double click on “Payment Amount cell”
Click on “Simulate” & “Save”

To Make Customer Residual Payment (F-28)

Residual Payment: - The original invoice will be cleared and a new open item will be created for
remaining balance.
Document date : DDMMYYYY
Company code : CSK7
Go to Bank details
Account no : 200000 (HDFC Bank)
Amount : Partial amount (even one rupee also)
Go to “Open item section”
Open item a/c no : 1000000 (Jayasree Cement Suppliers)
Click on “Process Open items”
Go to “Residual Payment” tab
Double click on “Residual Items cell”
Click on “Simulate” & “Save”
Payment Terms: - Terms related to payment agreed between our company and an external party.
It is a four-character code which contains all the payment related conditions
that will applicable to an invoice.

Standard Payment terms: - (Created and provided by SAP)

0001 – Immediately – Same day
NT30 – 30 days
NT60 – 60 days
Ex: - 30 days’ payment term manual creation (0050)
Conditions: -
1. If you pay in 10 days – 3% discount.
2. If you pay in 20 days – 2% discount.
3. Pay within 30 days – No discount.
 To Create a payment term (OBB8) (Already covered in Accounts Payables)
Cash Discounts to Customers Configuration
1. Create Cash Discounts Given Expenses A/c (FS00)
Account : 400003
Company code : CSK7
Account type : Expenses
Sort & Long text : Cash discount given A/c
Select “Only balances in Local Currency”
Select “Line Item Display”
Sort key : 001 (Document date)
Field Status group : G001 (General)
Click on “Save”
2. Assign The Account for Automatic Postings in OBXi for the transaction key SKT.
Chart of Accounts : CSK7
Click on “Save”
Account : 400003 (Cash Discounts given Exp A/c)
Click on “Save”
Ex: - Customer Paid 50,000, if he has 0050 payment term in that open item (cash discount)
Entry is……

40 Bank A/c Dr 48,500

40 Cash Discount given exp a/c Dr 1,500
15 To Customer a/c Cr 50,000
Bank Charges Expenses A/c
While doing F-28 if bank charges need to provide  T code : OBXK  for the
transaction key: BSP; Check for the GL A/c ___________ Pick that GL Account and Post like
this.
Step 1: - Create Bank Charges GL a/c (FS00) (Already created in AP)
Step 2: - FI Configuration - Automatic Postings - Procedures (OBXK) (Already created in AP)
Click on “BSP”
Chart of accounts : NCLC
Account Assignment information
Account no : 400005 (Bank Charges)
Click on “Save”
Ex: - Customer Paid 50,000, if bank charged 300 as bank charges on that, the entry will be….

Installment Payment terms to Customers

1. To create installment payment term (OBB8) (Already created in AP)
2. To Specify Installments in Payment terms (OBB9) (already created in AP)
Ex: - If a customer has an open item wroth 1,00,000
He has to pay 1st installment 50,000 (0001)
2nd installment 30,000 (0050)
3rd installment 20,000 (NT60)
If he pays early he will get discount as per payment terms.
Suppose he paid 80,000 on the invoice day, he will get 50,000 (no discount)
30,000 (900 as discount)
If the item has 500 rupees’ bank charges also, the entry will be
Advances from Customers: -
1. Create Advances from Customers Spl G/L a/c (Liability + Reconciliation) (FS00)
Click on “Create New”
GL A/c number : 100006
Company code : NCLC press “Enter”
Account Group : Liabilities
Select “Balances sheet a/c”
Text : Advances from Customers Special G/L a/c
Control Data
Currency : INR
Don’t Select “Only Balances in Local currency”
Reconciliation a/c Type : D – Customers
Select “Line Item Display”
Sort Key : 031
Field Status group : G067 (Reconciliation a/c)
Click on “Save”
2. Assign the Special G/L a/c in the T.code OBXR by clicking A symbol
Execute OBXR
Click on “A”
Chart of Accounts
Reconciliation a/c : 200020 (Sundry Debtors)
Special G/L A/c : 100006 (Avd from Customers)
Click on “Save”
Two Scenarios: -
A. 100% Down payment: - In case of 100% down payment, customer want goods/services
wroth 50,000, we are asking the customer to pay full value 50,000 as advance.
1. To post Customer down payment (F-29) 50,000- (Spl GL)
Document date : 17.02.2022
Company code : NCLC

Customer Account : 29000000

Special GL indicator : A
Bank a/c : 200000 (HDFC)
Amount : 50,000
Line item 2 amount : *
Click on “Save”
2. To Post customer invoice (FB70) 50,000+ (Normal GL)
Post an invoice 50,000 form customer 29000000 to Sales revenue a/c 300006
3. Match & Clear (F-32)
Account : 29000000
Company code : NCLC
Special GL indicator : A
Select “Normal open item”
Click on “Process open items” & click on “Save”
B. Partial Down Payment: - In case of Partial down payment, if customer wants
goods/services wroth 50,000, we are asking the customer to pay some values (20,000) as
advance.
1. F-29 : Receive Down Payment from Customer : 20,000- (Special GL)
Document date : 18.02.2022
Company code : NCLC
Customer A/c : 29000000
Special GL ind : A
Bank A/c : 200000
Amount : 20,000
Line item 2 amount : *
Click on “Save”
2. FB70 : Post Customer Invoice 50,000+ (Normal GL)
Customer : 29000000
Invoice date : 18.02.2022
Amount : 50,000
GL a/c : 300006 (Sales revenue)
Amount : 50,000
Click on “Save”
3. F-39 : Transfer from Special GL to Normal GL
Document date : 18.02.2022
Company code : NCLC
Customer a/c : 29000000
Click on “Process open item”
Double click in “Transfer posting cell”
Click on “Save”
4. F-28 : Receive Balance payment from Customer : 30,000-
Document date : 18.02.2022
Company code : NCLC
Bank a/c : 200000 (HDFC)
Amount : 30,000
Open item selection
Customer a/c : 29000000
Click on “Process open items”
Click on “Save”
DUNNING PROCEDURE: - It is a correspondence procedure to send reminder letters to the
customers with regard to the overdue items from them.

Note: - No Accounting document is generated for in the process of dunning.

Dunning Levels: - No of Dunning Letters. (As per SAP maximum letters/levels are 9)

Dunning Intervals: - Time gap between letters.

Dunning Grace Days: - The days allowed after due date, before initiating the Dunning Procedure.

Dunning Charges: - Printing charges, Courier charges, etc……

Dunning Text: - Form – Format of Dunning Letter.

Minimum Amount: - It is the minimum limit for an open item, which open item amount is higher
than 1000rs that open item will be taken to Dunning process.

Step 1: - To Create Dunning Procedure : FBMP

Click on “New Procedure”
Dunning Procedure : NCLC
Name : NCLC Dunning Procedure
General data
Dunning interval days : 5
No of Dunning levels : 5
Line item Grace Periods : 3
Select “Standard transaction Dunning”
Click on “Dunning Levels”
Select “Calculate Interest” (from which level do you want charge interest)
Print Parameters
Select “Always Dun?” for all levels
Select “Print all items” for all levels
Click on “Charges”
Currency : INR press “Enter”
Dunning levels Dunning charges
1 100
2 200
3 300
4 400
5 500
Click on “Minimum Amount”
Currency : INR press “Enter”
Dunning levels Minimum Amount
1 1000
2 1000
3 1000
4 1000
5 1000
Click on “Dunning Text”
Company code : NCLC
Account type : Customer
Press “Enter”
Click on “New Company Code”
Company code : NCLC press “Enter”
Select “Dunning by dunning area”
Select “Separate notice per dunning level”
Click on “Save” save in “Accounts Receivables” request prompt
Again click on “Dunning Text”
Company code : NCLC press “Enter”
Dunning Form
1 Dunning from (F150_BE_DUNN_01) select from drop down list
2 Dunning from (F150_BE_DUNN_01)
3 Dunning from (F150_BE_DUNN_01)
4 Dunning from (F150_BE_DUNN_01)
5 Dunning from (F150_BE_DUNN_01)

Press “Enter”
Click on “Back”
Click on “Save” & “Enter”
Step 2: - Assign the Dunning Procedure in the Customer Master Record : FD02
Customer : 29000000
Company code : NCLC
Click on “Company code data”
Go to Correspondence”
Dunning data
Dunning Procedure : NCLC
Click on “Save"
Step 3: - To Run the Dunning Procedure : F150
Run date : 22.02.2022
Identification : 1
Go to “Parameters”
Dunning date : 22.02.2022
Docs posted on : 22.02.2022
Company code : NCLC
Customer : 290000000
Go to “Additional log”
Customer : 290000000
Click on “Save”
Click on “Schedule Dunning Run”
Output device : select your printer
Select “Start immediately”
Select “Dunn.print with scheduling?”
Click on “Schedule”
Keep on pressing “Enter” until status is changed to “Select and Print is complete”
Go to System
Service
Output Control
Click on “Execute”
BAD DEBTS: - Configuration
Step 1: - Create Provision for Doubtful Debts Special Account : FS00
G/L A/c : 100008
Company code : NCLC
Account type : Liabilities
Select “Balance Sheet a/c”
Text : Provision Doubtful Debts Spl G/l account
Control data
Currency : INR
Do not select “Only Balance in local currency”
Recon type : D – Customer
Select “Line item display”
Sort key : 031 (Customer Number)
Field status group : G067 (Reconciliation a/c)
Click on “Save”
Step 2: - Assign the A/c for Automatic Postings in OBXY by clicking “E” Symbol
Click on “E” Symbol
Chart of Accounts : NCLC press “Enter”
Reconciliation a/c : 200005 (Sundry Debtors)
Special GL a/c : 100008 (Provision of Doubtful a/c)
Click on “Save”

Step 3: - Create BAD Debts Expenses A/c : FS00

Copy an expense account
Change A/c number : 4000082
Text : BAD Debts Expense account
Remain all same as other Expense account
Click on “Save”
BAD DEBTS: - Process
 Normal Entry of the Customer
Sub-ledger Entry General Ledger Entry
Customer a/c Dr | Sundry Debtors a/c Dr
To Sales Revenue a/c Cr | To Sales revenue a/c Cr
 To Transfer a Doubtful Debt to Provision : F-30
Sub-ledger Entry General Ledger Entry
Customer a/c Dr | Provision for Doubtful a/c Dr
To Customer a/c Cr | To Sundry Debtors a/c Cr
 If Customer Pays this, To Receive Customer Payment : F-28
Sub-ledger Entry General Ledger Entry
Bank a/c Dr | Bank a/c Dr
To Customer a/c Cr | To Provision for Doubtful a/c Dr
 If Customer Does not pay, To Write off as Bad debt : F-30
Sub-ledger Entry General Ledger Entry
Bad Debts Exp a/c Dr | Bad Debts a/c Dr
To Customer a/c Cr | To Provision for Doubtful a/c Cr

 To Transfer a Doubtful Debt to Provision : F-30

Document date : 23.02.2022
Company code : NCLC

Go to “First line item”

Posting Key : 09 (Spl G/L Debt)
Customer a/c : 29000000000
Special G/L Indi : E
Click on “Choose Open items”
Amount : 1,01,972,60
Due date : Provide item due date.
Click on “Chose Open items”
Company code : NCLC
Customer a/c : 290000000000
Special G/L Indi : E
Click on “Process open items”
Document “Simulate” Sub-ledger
Entry

Document “Simulate” General Ledger

Entry

Click on “Back” & “Save”

  If Customer Pays this, To Receive Customer Payment : F-28
Document date : 23.02.2022
Company code : NCLC
Bank data
Account : 200000
Amount : 101972.60
Open item selection
Account : 2900000000
Special GL Indi : E
Click on “Process Open items” & click on “Save”
 If Customer Does not pay, To Write off as Bad debt : F-30
Document date : 23.02.2022
Company code : NCLC
First line item details
Posting key : 40 (Debit GL)
Account : 400082 (Bad Debts Exp A/c)
Click on “Chose open items”
Amount : 101972.60
Click on “Chose open items”
Company code : NCLC
Customer a/c : 290000000
Special GL Indi : E
Click on “Process open items”
Document “Simulate” Sub-ledger
Entry

Document “Simulate” General Ledger

Entry

Click on “Save”

Bill of Exchange: - It is a Letter of Credit. It is freely transferable document.

 A Customer Open item with payment term NT30
Sub-ledger General ledger
Customer a/c Dr 2,00,000 | Sundry Debtors a/c Dr 2,00,000
To Sales Rev a/c Cr 2,00,000 | To Sales Rev a/c Cr 2,00,000
 Bill of Exchange from Customer : F-36
Sub-ledger General ledger
Customer a/c Dr 2,00,000 | Sundry Debtors B/E Slp Gl a/c Dr
To Customer a/c Cr 2,00,000 | To Sundry Debtors a/c Cr
  Bill Discounting with Bank : F-33
Sub-ledger General ledger
Only General ledger entry | Bank a/c Dr 195000
| Bank Charges a/c Dr 5000
| To HDFC Bill discount Liablity a/c Cr 200000
 If Customer does not pay : Post Outgoing B/E Payment to Bank : F-07
Sub-ledger General ledger
Only General Ledger entry | HDFC Bill discounting Liability a/c Dr 2,00,000
| To HDFC bank a/c Cr 2,00,000
 If Customer Pays: Reverse Bill Liability : F-20
Sub-ledger General ledger
HDFC Bill disc Liab a/c Dr | HDFC Bill disc Liab a/c Dr
To Customer a/c Cr | To Sundry Debtors B/E Spl GL a/c Cr

Bill of Exchange : Configuration

Step 1: - Create Two G/L accounts : FS00
1. Create Sundry Debtors B/E Special G/L account : FS00
GL A/c : 200003
Company code : NCLC
Account type : Asset
Select “Balance sheet a/c”
Text : Sundry Debtors Bill of Exchange Account
Do not Select “Only Balance in Local currency”
Recon a/c type : D (Customers)
Select “Line item Display”
Sort Key : 001 (Posting date)
Field Status grp : G067 (Recon a/c)
Click on “Save”
2. Create HDFC Bill discounting Liability a/c : FS00
GL A/c : 100003
Company code : NCLC
Account type : Liability
Select “Balance sheet a/c”
Text : HDFC Bill discounting account
Select “Only Balance in Local currency”
Select “Open item management”
Select “Line item display”
Sort Key : 001
Field status grp : G001
Select “Post Automatically only”
Step 2: - Assign the accounts for Account Determination
1. Maintain accounting configuration for B/E Special GL : OBYN
Click on “W” (Bill of Exchange receivables)
Chart of Accounts : NCLC press “Enter”
Recon a/c : 200005 (Sundry Debtors)
Special GL A/c : 200003 (Sundry Debtors B/E Special GL a/c)
Click on “Save”
2. Bill of Exchange Usage Bank sub-accounts : OBYK
Usage bank sub-account (HDFC Bill Discounting Liability a/c)
Click on “New Entries”
Chart of Accounts : NCLC
Bank account : 200000
Usage : Discounting
Special GL Indi : W
Customer Recon a/c : 200005 (Sundry Debtors)
Bank sub-a/c Liability : 100003 (HDFC bill disc liab a/c)

 Post a Customer invoice using NT30 payment term : FB70

Customer : 290000000
Invoice date : 24.02.2022
Amount : 200000
GL account : 300006 (Sales Revenue a/c)
Amount : *
Go to “Payment” tab
Payment term : NT30
Click on “Save”
 Bill of Exchange Payment from Customer : F-36
Document date : 24.02.2022
Company code : NCLC
Transaction to be processed
Select “Incoming Payment”
Posting Key : 09 (Spl GL Debit)
Account : 29000000
Special GL Indi : W
Click on “Choose open item”
Amount : 200000
Due date : +30 days to document date (NT30)
Click on “Choose open Items”
Special GL Indi : W
Click on “Process Open items”
Document “Simulate” Sub-ledger view
Click on “Save”
 Post Bill of Exchange Usage : Bill Discounting with Bank : F-33
Document date : 24.02.2022
Company code : NCLC
Posting Details
Bank a/c : 200000
Amount : 195000 (200000-5000(bank charges))
Posting Key : 40 (Debit GL)
Account : 400005 (Bank Charges a/c)
Click on “Select Bill of Exchange”
Amount : 5000 (Bank charges)
Click on Select Bill of Exchange”
Document no : 500016 (B/E document)
Click on “Save”
 Post Outgoing B/E Payment to Bank : F-07 : if customer doesn’t pay
Document date : 24.02.2022
Company code : NCLC
Bank data
Bank a/c : 200000
Amount : 2,00,000
Open item selection
Account : 100003 (HDFC Bill disc liab a/c)
Click on “Process open items”
Click on “Save”
 Reverse Bill Liability : F-20 : If customer pays
Document date : 24.02.2022
Company code : NCLC
Bill of Exchange selection
GL a/c : 200003 (Sundry Debtors Bill of Exchange Spl GL a/c)
Usage : Discounting
Due by : +30 days to Document date (NT30)
Click on “Edit line items”
Command : Select + Set items to active
Click on “Save”