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 .

Individual account information concerning the Vendor  Purchasing Organization Data:.Vendor Master Data The Vendor Master record contains data that controls how business transactions are recorded and processed by the system. phone. It also includes all the information about a vendor that you need to be able to conduct business with him or her. purchase orders and invoice verification 4 .. etc. Company Code:.Information on request for quotation. General Data:-Basic information such as company address.

It helps in determining:  The Number Interval for the Account Number of the Vendor.  Which specifications are necessary and/or possible in the Master Record. 1 2 3 Account Group ZF01 ZF01 ZE01 Account Group Description Domestic Vendors Foreign Vendors Employees .No. Sl.Vendor Groups  Vendor Account Group is a classifying feature within Vendor Master Records.  Whether the number is assigned by the user or by the system.

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 C T Description Check Transfer .

Terms of Payment ‡ Payment terms primarily define payment periods. and installment payments. the baseline date for payment. Payment terms will be defined in system and will maintain in Vendor Master. Terms of Payment WNA1 WN10 WN25 Description Payable immediately due net Payable within 10 days Payable within 25 days . They are used in invoices to provide information for cash management. the day limit. ‡ Terms of payment include settings for the payment terms. Baseline date determines the date from which payment terms will be calculated.

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.

MM Good Receipt Stock (322000) GR/IR (Accrual 408000) Invoice Verification and Posting Vendor MM 100 1 100 100 2 100 . 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.Valuated Good Receipt Accounting treatment of Stock Item Purchasing Goods receipt rise accrual and increases stock in value and quantity updating MAP.

. 5100012345 created Document no.Invoice Variances PO Invoice Purchase order Goods receipt Tolerances 10% 10% Warning: variance! Post Warning: variance! Post Document no. 5100012345 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 incoming invoice processing covers:  Invoice received from vendor  Debit note received from vendor  Credit note received from vendor (Debit note issued to Vendor) .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.

PO. etc.) and finally post the parked document. service/good receipt)  At second level the accounting dept. payment terms. (PCD) will park the invoice entering header data plus vendor information (code.e. down payment. payment)  The parked document will be printed and attached to the supporting documentation (original invoice. . 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.Invoice Approval Process within FIAP The invoice approval process will be supported by the SAP µPark Document¶ functionality:  At first level the responsible dept. amount. disputed amounts.. will add the cost element/cost object in the parked doc.

Outgoing Payment  It is process where cheque. bank draft.  Payment processing covers: -Automatic payment -Manual Payment  Ad-hoc payment (Manual Cheque)  Payment to foreign currency vendor . payments orders and other outgoing payment instruments are recorded in the system.

Company code -Banks -Posting date .Next payment run Creating and editing payment proposal -Proposal Payment -Edit Proposal Payment -Changes to the Payment Executing the Payment Run Print the Payment .Automatic Payment Payment program configuration .Methods of payment .

Vendor Payment Blocking Blocking vendor for posting Blocking vendor for payment Blocking a vendor document for payment .

‡ . The amount of these open items were translated into the local currency at the time.Foreign Currency Valuation ‡ Basically Valuation process is necessary if Vendor and Customer accounts contain open items in a foreign currency.

the following standard reports are available in SAP:    -Vendor list -Display changes to Vendor -Display/Confirm critical Vendor Changes  For transactional data:  -Vendor balance  .Open Items  .Transaction figures  .Due Date Analysis  -Aging Reports .Reporting  For master data reporting.

Thank You! .

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