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    Herald Gangcuangco
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    This document provides information about accounts payable in SAP, including: - Accounts payable is a sub ledger used for all purchases when materials management is not implemented, and for services where TDS is deducted when materials management is implemented. - SAP passes an internal entry to the sundry creditors reconciliation account when an inventory purchase entry is made to match the trial balance. - Basic settings for accounts payable include creating vendor account groups, number ranges, tolerance groups, GL accounts, vendor masters, and document types. - House banks are created at the branch level with account IDs. - Advance payments to vendors are handled by linking the sundry creditors and advances to vendors accounts, with

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    This document provides information about accounts payable in SAP, including: - Accounts payable is a sub ledger used for all purchases when materials management is not implemented, and for services where TDS is deducted when materials management is implemented. - SAP passes an internal entry to the sundry creditors reconciliation account when an inventory purchase entry is made to match the trial balance. - Basic settings for accounts payable include creating vendor account groups, number ranges, tolerance groups, GL accounts, vendor masters, and document types. - House banks are created at the branch level with account IDs. - Advance payments to vendors are handled by linking the sundry creditors and advances to vendors accounts, with

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
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    74 views4 pages

    Accounts Payables 3 Documents

    Uploaded by

    Herald Gangcuangco
    This document provides information about accounts payable in SAP, including: - Accounts payable is a sub ledger used for all purchases when materials management is not implemented, and for services where TDS is deducted when materials management is implemented. - SAP passes an internal entry to the sundry creditors reconciliation account when an inventory purchase entry is made to match the trial balance. - Basic settings for accounts payable include creating vendor account groups, number ranges, tolerance groups, GL accounts, vendor masters, and document types. - House banks are created at the branch level with account IDs. - Advance payments to vendors are handled by linking the sundry creditors and advances to vendors accounts, with

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
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    of 4

    ACCOUNTS PAYABLE

    This is a Sub Ledger (Subsidiary Ledger). When Material Management (MM) is not
    implemented, this is used for all Purchases i.e., Material purchases as well as for services.
    When Material Management Module is implemented this is used for Services, where TDS is
    to be deducted. Ex: - Legal & Professional Charges, Job work Charges.

    In Normal Accounting for Raw Material Purchases accounting entry would be like below:
    Purchases A/c Dr
    To Party A/c (Supplier Account) Cr
    Where as in SAP Entry would be like below:-
    Inventory Raw Material A/c Dr (General Ledger) To
    Party A/c (Supplier Account) Cr (Subsidiary Ledger)

    If the Entry will be like above, Trial Balance will not match as in Trial Balance only
    Balances of General Ledgers will affect but not the Subsidiary ledgers. To overcome this
    problem, SAP automatically passes one more entry internally as and when we pass the first
    entry.

    SAP passes Internal Entry to Sundry Creditors RM A/c (General Ledger) which is a Recon
    Account or Control Account. If I want to see, one party account we can go to party account.
    If I want to see all sub ledgers, we can go to Sundry Creditors RM a/c

    Basic Settings for Accounts Payable:


    1 Creation of Vendor A/c Groups
    A) FI Vendors B) MM Vendors
    (Service Parties) (Material Suppliers)
    ↓ ↓
    Specify Recon A/c Required Specify Recon A/c Required
    Entry Field Entry Field

    2 Create Number Range for Vendor Account


    3 Assign No Range Group to Vendor Account Group
    4 Create Tolerance Group for Vendor Account
    5 Creation of 2 GL Masters
    A) Inventory RM Under Current Assets & Loans and Advances
    B) Sundry Creditors for RM Under Liabilities & Provisions
    6 Creation of Vendor Masters
    7 Document Types and Number Ranges
    KR----> endor Invoice
    KZ----> Vendor Payment
    KA----> Vendor Document for Transfer / Reversals

    8 Posting Keys 31 Vendor Credit


    25 Vendor Debit

    V
    HOUSE BANKS:-
    Scenario 1:
    SBI Main Branch
    ↓
    A/c Ids C. A/c 1 C. A/c 2 C. A/c 3

    Scenario 2:
    SBI Main Branch SBI Begum pet
    Bank St. Hyd Branch Hyd
    ↓ ↓
    Current A/c #1 Current A/c #1
    1 House Bank 1 House Bank
    1 A/c Id 1 A/c Id
    House Banks will be created Branch wise

    (In Normal English Cheque= In SAP Check)

    Advance Payment to Vendors


    (Down Payment to Vendors)
    Steps:
    1 Creation of GL Master " Advances to Vendors" under Current Assets , Loans & Adv
    2 Link Between Sundry Creditors & Advance to Vendors

    Sundry Creditors Advances to Vendors


    (Reconciliation Account) (Alternative Reconciliation Account ↙
    ↘ or Special GL A/c)
    A
    (Advance - Special GL Indicator)
    A/c # 100501 (Sundry Creditor Inventory Raw Materials A/c)
    A/c # 200150 (Advances to Vendors A/c)

    At the time of Making Payment, we know the purpose wither it is advance or


    against Bill. If payment is made against Bill Number, as we assigned A/c# 100501
    in Creditor Account 4400001, it will update the A/c # 100501.
    If we are making payment as advance, while at the time of payment against
    Creditor A/c 4400001, we mention "A" for advance. System automatically
    updates A/c # 200150 (Advances for Vendors Account) instead of Account #
    100501 (Sundry Creditors Inventory Raw Materials Account)

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