Andean Trading Company

Trade Co Project
Accounts Payable Workshop Preparation

April 9th , 2010

Accounts Payable
Workshop Objective

 Discuss the functionality of Accounts Payable with respect to

Master Data and Posting of Transactions.
 Agenda

Account payable
 Vendor Master Record
 Vendor Account Groups
 Payment Methods
 Terms of Payment
 Vendor Invoice Processing
 Invoice Verification
• By MM functionality
• Within FI
 Exchange rate difference Management
 Foreign Currency Valuation
 Down Payment
 Automatic Payment
 Manual Payment
 Vendor Payment Clearing
 Reports
 Vendor Master Data
 The Vendor Master record contains data that controls how
business transactions are recorded and processed by the system.
It also includes all the information about a vendor that you need to
be able to conduct business with him or her.

 General Data:-
-Basic information such as company address, phone,
etc.,
 Company Code:-
- Individual account information concerning the
Vendor
 Purchasing Organization Data:-
- Information on request for quotation, purchase
orders and invoice verification

4
Vendor Groups

 Vendor Account Group is a classifying feature within Vendor

Master Records. It helps in determining:
 The Number Interval for the Account Number of the Vendor,
 Whether the number is assigned by the user or by the
system,
 Which specifications are necessary and/or possible in the
Master Record.

Sl.No. Account Group Account Group Description

1 ZF01 Domestic Vendors
2 ZF01 Foreign Vendors
3 ZE01 Employees
 Payment Methods

• The Payment Method in the Vendor Master controls the automatic

payment program and determines the form or payment carrier
(such as cheque or bank transfer) of payment for a line item.
• Following are some of the example of Payment Methods are in
Trading Company:

Payment Methods Description

C Check
T Transfer
 Terms of Payment
• Payment terms primarily define payment periods. They are used
in invoices to provide information for cash management.
• Terms of payment include settings for the payment terms, the day
limit, the baseline date for payment, and installment payments.
Baseline date determines the date from which payment terms will
be calculated. Payment terms will be defined in system and will
maintain in Vendor Master.

Terms of Payment Description

WNA1 Payable immediately due net
WN10 Payable within 10 days
WN25 Payable within 25 days
 Invoice Verification: Integration with
MM
 Invoice verification:
Completes the procedure of materials procurement from the
purchase requisition through purchasing up to goods receipt

 Invoices are verified by matching them a purchase order and goods

receipt

 In case of mismatching the invoice is blocked for payment.

 For correct invoice balance are posted to the General Ledger and to
Cost Accounting.
 Valuated Good Receipt

Accounting treatment of Stock Item Purchasing

Goods receipt rise accrual and increases stock in value and

quantity updating MAP.

Posting Invoice with the corresponding Purchase Order/Goods

Receipt won’t cause economic effects (except for variations in
quantity and price) since it clears the previous accrual.
MM Invoice MM
Good Receipt Verification and
Posting

Stock (322000) GR/IR (Accrual 408000) Vendor

100 100 100 100

1
2
Invoice Variances

PO

Purchase
Invoice order

Goods receipt

Tolerances

10% 10%

Warning: variance! Warning: variance!

Post Post

Document Document
no. 5100012345 no. 5100012345
created created
Blocked
for payment

 If an upper tolerance limit is exceeded in an invoice item

(according to PO Price) SAP System blocks payment of the
entire invoice when you post it.
 Non-Purchase Order Invoice
Processing

 This is a process where non-purchase order invoice/debit or

credit note received from vendor for purchases of goods or
services.
 Non-purchase order incoming invoice processing covers:
 Invoice received from vendor
 Debit note received from vendor
 Credit note received from vendor (Debit note issued

to Vendor)
 Invoice Approval Process within FI-
AP
The invoice approval process will be supported by the SAP ‘Park
Document’ functionality:
 At first level the responsible dept. (PCD) will park the invoice
entering header data plus vendor information (code, amount,
payment)
 The parked document will be printed and attached to the
supporting documentation (original invoice, PO, service/good
receipt)

 At second level the accounting dept. will add the cost

element/cost object in the parked doc.; the completed parked
doc will be printed and attached to the supporting
documentation

 The accounting department will make the required adjustments

in parked document (i.e. disputed amounts, down payment,
payment terms, etc.) and finally post the parked document.
 Outgoing Payment
 It is process where cheque, bank draft, payments orders and
other outgoing payment instruments are recorded in the system.
 Payment processing covers: -
-Automatic payment
-Manual Payment
 Ad-hoc payment (Manual Cheque)
 Payment to foreign currency vendor
 Automatic Payment

 Payment program configuration

- Company code
-Banks
-Posting date
- Methods of payment
- Next payment run
 Creating and editing payment proposal
-Proposal Payment
-Edit Proposal Payment
-Changes to the Payment

 Executing the Payment Run

 Print the Payment
 Vendor Payment Blocking

 Blocking vendor for posting

 Blocking vendor for payment
 Blocking a vendor document for payment
 Foreign Currency Valuation

• Basically Valuation process is necessary if Vendor and

Customer accounts contain open items in a foreign currency.
The amount of these open items were translated into the local
currency at the time.
•
Reporting
 For master data reporting, the following standard reports are
available in SAP:

 -Vendor list
 -Display changes to Vendor
 -Display/Confirm critical Vendor Changes

 For transactional data:

 -Vendor balance
 - Transaction figures
 - Open Items
 - Due Date Analysis
 -Aging Reports
Thank You!