AOI_SAP_FICO_Accounts Payable_Training Presentation_2

1

SAP End-User Training

Accounts Payable AccountingOverview and Invoice Processing

2

Welcome…

• Introductions

• Housekeeping

• Course Objectives

• Finance Overview

• Course Material

• What’s Next?

• Course Review

3

Introductions

• Name

• Department

• History with AOI

• Class expectations

4

Prerequisites

• Prior to attending this course, you should have completed the following:

• SAP Basic Navigation

5

Be mentally engaged

Assume best intentions when dealing with conflict

Remain open minded

Respect each others time – including punctuality, scheduling and communication

Be respectful in our use of electronics

One person speaks at a time – with the attention of all

Offer input; everyone has value to add

Understand what is being said, or ask for clarification

No side conversations; it’s distracting and excluding

Leave mental baggage at the door

Enforce all ground rules

Share all relevant information within the allotted time and “park” other ideas for later

Be Positive!

Ground Rules

6

Course Components

• Concepts

• Demonstrations

• Exercises

• Task support

• Work instructions

• Context sensitive help

• Participant guides

• Evaluation

7

Course Agenda

• Overview

• Invoice Processing

• Purchase Order Invoices

• Non-Purchase Order Invoices

• Credit Memos

• Payments

• Analysis and Reporting

• Approximate course time: 2 days

8

Project Overview

Back OfficeShop Floor

SCOPE OF PROJECT

Finished Good Inventory ManagementSales – Order to Cash cycle

LogisticsFinance / Accounting

TreasuryTax

ConsolidationPlanning

Raw Material ProcurementReceivingBlending

ProcessingQuality Control

Costing

Aug 08 Oct 08 Dec 08 May 09 Aug 09

US UK & Brazil Argentina &

Guatemala

Asia & Africa

Europe

9

Project Overview (cont.)

SAP Modules

10

Finance Overview

Finance

Financial Accounting

(FI)

Controlling (CO)

AccountsPayable

Banks

AccountsReceivable

GeneralLedger

Cost CenterAccounting

Cost ElementAccounting

Profit CenterAccounting

Other

ModulesOther

Modules

11

Learning Objectives

Upon completion of this course, you should have an understanding of:

• The Accounts Payable process and how it is integrated with other business processes in SAP

• Vendor master data overview

• How to process invoices and credit memos

• AOI’s practice of processing payments

• How to execute applicable AOI transactions in SAP Accounts Payable

• How to review and analyze different Accounts Payable reports

12

Benefits of SAP AP Process

• Vendor master• Master data that is all on the same system will prevent duplication of data entry

and reduce errors

• Vendor master data can be specific to each company code

• Invoice processing• Invoice documents can be parked or held for later editing and posting

• Payments• Automatic payment program will pay open vendor invoices automatically based

on their due date

• You can also issue manual payments

• Check Management• Checks are easy to manage in the centralized system. You can void, reissue,

delete, stop payment, display check information, and more.

13

Changing Processes

Current Process Future Process with SAP

New vendors can be set-up on demand, as needed.

Vendor master data will be maintained centrally. New vendor set-up will require a request and will need to go through proper approvals.

Not all purchased goods and services currently require a purchase order.

All purchases of goods and services will require a purchase order. They will also require a goods receipt. The incoming vendor invoice will match against the PO and GR. These invoices will not need to go through approvals.

All payments do not go through AP. Some departments pay cash or cut their own checks.

All Payments will go through AP

14

Finance Overview

15

Terminology

• Vendor master• Vendor data that includes addresses, payment details, and account balances

of all vendors with which AOI conducts business.

• They will be centrally maintained to prevent duplication

• Chart of accounts (COA)

• A framework of GL accounts for the recording of values to ensure an orderly rendering of accounting data

• Fiscal period

• A period as defined by the financial calendar

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Terminology (cont.)

• Company code

• Smallest organizational unit of external accounting for which complete reporting can be performed within the AOI chart of accounts

• Previously referred to as a Financial Entity

• Document

• Representation of an accounting document or entry in the SAP system

• Each posting is stored in the form of a document

• Each document has a document number to uniquely identify it

• The term document can refer to invoices, payments, general ledger journal entries, credit memos, etc.

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• Balance Sheet• Income Statement• Cash Flow

• Cost Center Reports• Sales & Profit Analysis

CO

FIExternal

Requirements

InternalRequirements

Financials vs. Controlling

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Components of the Financial (FI) Module

• General Ledger Accounting

• Accounts Payable

• Accounts Receivable

• Treasury

• Asset Accounting

• Consolidations

19

FI Account Integration

Subledgerautomaticallyupdates G/L

Generate standardreports

GeneralLedger

ARSubledger

Fixed AssetsSubledger

APSubledger

Invoices

ManualPostings

ReverseDocuments

HeldDocuments

AutomaticPostings

AOIFinancial

Statements

Account inquiry

Display balances & line items

Posted vendorinvoices update the

subledger

20

SAP breaks the GL Account structure into 3 different fields:

• Company Code: • 4 digits • Formerly called Financial Entity

• GL Account: • 7 digits

• New GL Accounts will begin with same numbering system as Adage. (ex. 6… = SG&A expense)

• Cost Center: • 10 alphanumeric characters• Represents the department that is responsible for the cost

1010 6424000 10103601US

Company Code

GL Account

Cost Center

New GL Account Structure

21

SAP Accounts Payable Overview

Create Vendor Master Data

Process Invoices

Process Payments

Generate Reports

22

Master Data

23

What is Master Data?

• Master data is any information that is considered to play a key role in the core operation of a business.

• It may include data about vendors, materials, customers, banks, general ledger accounts, inventory, suppliers, analytics and more.

• Master data is shared by all AOI groups across the organization and is stored on one system.

MasterData

AP

TR

GL

MM

AR

OTC

24

Who Will Enter Master Data?

• Master data entry will now be centralized. There are only a few employees with access to enter master data.

• New master data records will go through a creation process that includes a request form and approvals.

• This new process will:

• Streamline data entry

• Avoid duplicates

• Ensure better data quality

• Improve business control and compliance

25

Vendor Master Records:10 Key Points

1. Vendor is a business partner to whom payables are due as a result of goods and/or services received

2. Business transactions are posted and managed in vendor accounts

3. Vendor master must be created first before transactions can be posted to the vendor account

4. Vendor numbers can be assigned internally or externally

5. A vendor can be used by different company codes

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6. SAP will be the central repository for all Vendor Master records

7. Vendor Master is used by Purchasing and Accounting

8. Information is stored in views (General, Purchasing and Accounting)

9. Most changes to vendor records are made real-time with the exception of sensitive data such as bank information which must be confirmed by another party.

10. A new vendor can be created by reference to an existing vendor – this speeds up data entry and creates consistency of data in the system

Vendor Master Records:10 Key Points (Cont’d)

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Vendor Master Data Views

General View Accounting View

Name and address

Bank data

Tax info

Contact person

Reconciliation account

Payment terms

Payment method

Purchasing View

Order currency

Incoterms

Partner functions

• General View applies across company codes and purchasing organizations

• Accounting Views apply to specific company codes

• Purchasing View apply to specific purchasing organizations

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Payment Terms

• The due date for an invoice is calculated based on the document date and the payment terms

• The payment terms from the vendor master defaults for an invoice unless manually changed at the time of creating the purchase order or at the time of invoice entry

• The date for payment using the automated payment program can be changed by either changing the payment terms in the invoice or by running the payment program with different parameters

• Payment terms are configured to handle discounts

• Examples of some payment terms that will be used:• Net Due Immediately

• Net Due in 30 Days

• 10% Discount when paid within 15 days, Net Due in 30 Days

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Vendor Creation / Maintenance Process

3.04.02 – Procure to Pay

PTP 2 Vendor Master

Maste

r D

ata

A

dm

inis

trato

rM

aste

r D

ata

A

dm

inis

trato

rR

equis

itio

ner

Requis

itio

ner

Event

Event

Requirement for a new Vendor MasterRequirement for a new Vendor Master

Request new Vendor MasterRequest new

Vendor Master

Does Vendor Master exist in Plant?

Does Vendor Master exist in Plant?

Does Vendor Master exist in SAP?

Does Vendor Master exist in SAP?

No

No Further Action Required

No Further Action Required

Yes

Extend Vendor Master to required

Purchasing Organization

Extend Vendor Master to required

Purchasing Organization

Yes

Advise Requisitioner

Advise Requisitioner

Create Vendor Master

Create Vendor Master

No

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Display Vendor Record – XK03

• Perform this task when you need to look up a vendor record.

• You can look up their address, payment terms, etc.

• Most users in the accounts payable process will be able to view vendor master data

Demonstration

TaskExercise

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Tax

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US Tax in SAP Accounts Payable

• Taxes are applicable to most AP transactions

• G/L account master record determines if a tax code is required for the transaction

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Types of Tax Codes

• Tax code

• Indicates the type of tax and the amount of tax for an invoice

• Can be set at the header level for the entire document or changed at the individual line item level

Tax Code Description

I0 AP Sales Tax - Exempt

I1 AP Sales Tax - Taxable - Distributed to Line Items

U0 AP Use Tax - Exempt

U1 AP Use Tax - Taxable - Self Assessed

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Tax Jurisdiction Codes

• Tax jurisdiction code (TJC)

• Used to determine the tax authorities to be paid

• AOI will be using 2 US Tax Jurisdiction Codes

• NC0100000 – North Carolina with County Tax

• VA0100000 – Virginia with County Tax

• Pick the appropriate Tax Jurisdiction Code based on the state where the goods/services were provided and invoiced

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Invoice Entry and ManagementNon-Purchase Order

Invoices

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Key Terms and Definitions – Invoices

Term Definition

• Invoice

• Credit memo

• Request by vendor for payment of materials or services that have been provided

• Obtained from the vendor and entered into SAP when materials are returned to or were not received from the vendor

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Invoice Management• When an invoice is received and entered into SAP, an

SAP invoice document is generated

• There are three types of invoice documents:

• FI/Non-PO Invoice• Invoice, no purchase order (PO), no goods receipt (GR)

• Used for items such as rent and utilities

• PO/GR Invoice• Invoice, PO, and GR (3-way match)

• Used for purchased materials or services

• Blanket PO Invoice• Invoice, PO, and no GR

• Has a set limit for amount and date range

• Ex. Office supplies: $10,000 budgeted for 3 months

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Non-PO Invoice Process

Financial Accounting - AP -Manual Invoice/Credit Memo

V1AAc

coun

ts P

ayab

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coun

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2Vendor

Expense / Accrual

2Vendor

Expense / Accrual

AP S

uper

viso

rAP

Sup

ervi

sor

Even

tEv

ent Non-PO related

Vendor Invoice is received

Non-PO related Vendor Invoice is

received

4.1Enter Vendor

Invoice

4.1Enter Vendor

Invoice

Approve invoice /

credit memo

Approve invoice /

credit memo

4.2Enter Vendor Credit Memo

4.2Enter Vendor Credit Memo

1Expense / Accrual

Vendor

1Expense / Accrual

Vendor

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FB60 – Enter non-PO Invoice

Header Data:

• Vendor

• Invoice Date

• Reference (Vendor’s invoice #)

• Amount

• Tax Code

Line Item Data:

• GL Account

• Cost Center

• Line item amount

• TJC

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Simulating and Posting Invoices

The save button will post an invoice.

Simulating allows you to preview the financial

document before posting

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Enter Vendor Invoice Without Reference to a PO - FB60

• Perform this procedure when you want to enter an Accounts Payable vendor invoice that does not require a purchase order.

• Record the document number (SAP invoice number) that displays at the end of this transaction on the source document for future reference.

Demonstration

TaskExercise

42

Hold or Edit Invoice

• Temporarily stored document

• Does not update or post to any accounts

• You give the document an ID for holding

• Change or delete as needed

• Look up your held documents by turning your document tree on

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Reverse an Invoice (FB08)

• When reversing an invoice, a reason for reversal must be declared

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Invoice Entry and Management

Purchase Order Invoices

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Procure-to-Pay (Purchasing) Process

Requirement Determination – Purchase Requisition Created

Vendor Determination

Requisition Approval

Goods Receipt

Invoice Verification

Purchase Order Generation & Approval

Payment Processing

Karl Einstein

Bank transfer 9,500Date

Request for Quotes (RFQ)

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Invoice Processing – PO Invoices

Denotes Task Performed in SAP

Invoice received

Invoice received

A/P Clerk enters invoice

A/P Clerk enters invoice

Investigate/ resolve issues

Investigate/ resolve issues

Post invoice

document

Unblock invoice as required

Perform payment process

Perform payment process

SAP performs 3-way match

SAP performs 3-way match

Payment block invoice as required

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MIRO – Enter PO Invoice

Header Data:

• Vendor

• Invoice Date

• Reference (Vendor’s invoice #)

• Amount

• Tax Code

• PO Number

Line Item Data:

• PO Line item amount and quantity

• GL Account

• Cost Center

48

Purchase Order Based Invoice Processing

• Incoming invoices are verified in terms of their amount, prices, and quantity

• The invoice verification also handles credit memos either as invoice reversals or return deliveries.

• The purchase order has already been approved, so the invoice does not require approvals.

• If the invoice matches the purchase order price and goods receipt quantity, the invoice will automatically go to the payment queue.

• If the invoice differs from the PO price and GR quantity, the invoice will be blocked for payment.

49

Blocking Vendor Invoices

• Invoices are blocked for payment when:

• There is a variance between the item price on the purchase order and the item price on the vendor invoice

• There is a variance between the item quantity that has been received on the Goods Receipt and the item quantity that is being invoiced from the vendor

• There is a large variance in the moving average price of a material

• Tolerances

• A small variance may be allowed between the Invoice, PO, and GR price and quantity

• These allowed variances are called tolerances

• If the difference falls within the tolerance, the invoice will still go for payment

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Price Block Example

•PO item price is $10

•Invoiced item price is $11

•Quantity invoiced = 50

•Price absolute limit (tolerance) = $10

•Price percent limit (tolerance) = 0%

•($11-$10) = $1 < $10 tolerance limit

•($11-$10)/$10 = 10% ≥ 0% tolerance limit BLOCKED!

51

Unblocking Invoices

There are 3 ways to unblock an invoice:

1. Receive a credit memo• If there is a price or quantity difference, the vendor can send you a credit memo.

• You will then enter the corrective credit memo against the PO, GR, and Invoice

• If the credit memo corrects all of the discrepancies, it will unblock the invoice and send it through to payment

2. Fix/Enter the GR• If there is no Goods Receipt for the material, it must be entered before AOI will pay the

invoice.

• If the GR is entered for the incorrect quantity, it will need to be corrected.

• If we have not received all of the goods that they are invoicing us for, the invoice will remain on payment block until all of the goods have been received.

3. Change the PO and send it back through approvals• If there is a price difference that is being accepted by AOI, the Purchase Order needs to be

corrected

• After the PO is corrected with the price on the invoice, it will go back through approvals.

• Once the prices match and it has been approved, the invoice will go for payment

52

Enter Vendor Invoice with PO - MIRO

• Use this transaction to enter an invoice with reference to a purchase order (PO).

• Perform this procedure when a supplier’s invoice is received.

• Record the document number that displays at the end of this transaction for reference.

Demonstration

TaskExercise

53

View and Release Blocked Invoice - MRBR

• Perform this procedure when an invoice was created but was blocked for payment through either automatic or manual blocking methods.

• Each invoice will be reviewed after block. Steps will be taken to correct the PO, GR or Invoice.

• All Purchase Orders that are updated will go through the approval process again. Invoices cannot be released while the PO has been changed and not approved.

• Once a PO has been fixed to match the invoice, the invoice will automatically release for payment.

Demonstration

54

Display Invoice List – MIR5 / MIR6

• Use this report to pull up a list of PO based invoices

• There are many search fields to choose from, based on your specific criteria

Demonstration

TaskExercise

55

Evaluated Receipt Settlement - MRRL

• ERS invoices will be generated for vendors with whom there is an agreement in which AOI creates the invoice rather than the vendor

• Partners agree to supplier payment upon confirmation of arrival of goods, making the invoice redundant.

• Taxes and payment terms are automatically calculated from the purchase order.

56

Consignment Settlement - MRKO

• Consignment Material is stored at your company premises but belongs to a vendor. The vendor supplies these goods so that they are available to you at any time, but does not initially invoice you for the goods. Only when you have withdrawn stock does payment become due for the quantities used.

• Removing material from consignment stores or transferring material to your company’s own stock results in liabilities towards the vendor. You should settle these liabilities at regular intervals.

• Consignment materials are settled without the vendor issuing an invoice, as the vendor company is unable to track withdrawals directly. The vendor can only manage its consignment stock by taking deliveries and payments into account.

• You do not expect an invoice from the vendor for goods withdrawals from consignment stocks or a pipeline. Instead you settle posted withdrawals and return deliveries yourself and send the vendor a statement of the settlement. You can perform this settlement periodically in the background. Invoices and credit memos can be involved

• You can initiate payment for consignment withdrawals using MRKO

57

Invoicing Plan Settlement – MRIS

• The invoicing plan is a utility allowing you to specify when and for which amount you wish to create invoices.

• The creation of the invoice is independent of the receipt of the goods or the service (service entry).

58

Invoicing Plan Settlement - MRIS

• Use this transaction to run the invoicing plan settlement

Demonstration

TaskExercise

59

Credit Memos

60

Accounts Payable Credit Memo

2. Check amount is reduced by amount of credit memo

Check

SAPSAP

1. Received from vendor and entered by AP to process debit adjustments to vendor accounts

AP Credit Memo

SAPSAP

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Purchase Order Credit Memo

PO Credit Memo 1. Received from vendor and

entered by AP to process against GR and PO-verified invoices SAPSAP

Return2. Physical return

or rejection can be processed

Check3. Check amount is

reduced by amount of credit memoSAPSAP

62

Types of Credit Memos

• Accounts Payable Credit Memo (FB65)• Makes debit adjustment to vendor account

• Used to apply a credit when no PO exists (AP invoice)

• Entered in AP module of SAP

• Ex. Overcharge

• Purchase Order Credit Memo (MIRO)• Makes debit adjustment to vendor account

• Used to apply a credit when PO exists

• Entered in Purchasing module of SAP

• Ex. Price adjustments or returns

63

Enter Vendor Credit Memo without Reference to a PO - FB65

• Use this transaction to post a credit memo from a vendor for overcharged or damaged items without reference to a purchase order.

• A vendor credit memo is a reversal of all or part of a vendor invoice.

• When an invoice is cancelled, the system automatically creates a credit memo.

• Once posted, the credit memo is applied against the vendor account balance, and is subsequently removed from future payments.

Demonstration

TaskExercise

64

Process Recurring Entry (FBD1)

• This will be used to process an invoice requiring payment at the same time interval for the same amount, without having the invoice.

• Ex. Rent due on the first of every month

65

Helpful Hints

• Record the SAP document number on the source document (credit memo, invoice) for reference purposes

• Remember that you can always use match codes to look up numbers and codes that you can’t remember

• All “create” transactions generate a unique electronic SAP document number

• Look up a vendor record if the vendor number is unknown by using SAP’s search functions. Search for the vendor master record using vendor’s name or address

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Payments

67

Outgoing Payment Processing

ManualPaymentManual

PaymentPaymentProgramPaymentProgram

Vendor A Vendor A Vendor B Vendor C

InvoiceIn

Check ACH

InvoiceInInvoiceInInvoice

Wire

68

Automatic Payment Program – The Four P’s (and sometimes an E)

Parameters

Proposal Run

Edit Proposal (Optional)

Defines which accounts and items the payment program will include in the automatic payment run

• System checks the accounts and documents specified in the parameters for due items

• Groups items for payment

• Selects relevant payment methods and banks

Provides the opportunity to check the results and make edits BEFORE the payment program is run (e.g., block an invoice for payment).

Payment Run

• Posts payment documents

• Clears open items

• Prepares data for printing of payment media

PrintGenerates payment media (checks, files for ACH, files for third parties to print checks, etc.)

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Payment Processing

Schedule Payment Run

Print Checks

Create Payment Parameters

Generate Payment Proposal

Review and Edit Payment Proposal

70

Payment Parameters

• Specification of parameters enables SAP to select open items to be paid

• Payment run parameters consist of:

• Vendor accounts

• Payment method and bank

• Company Codes

• Next run date

• Posting date

• Select items for payment

• Payment medium (checks, etc.)

71

Payment Proposal

• The payment proposal allows you to review the details of the vendors and items that will be paid during the payment run

• Exceptions are listed in the proposal log

• Exceptions are items that are not included in the proposal because the item or account is blocked

• Incorrectly posted invoices should be reversed and reentered correctly

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Payment Run

• Payment run is planned after processing of the payment proposal

• Payment run can be carried out immediately or scheduled for batch processing

• Payment is posted by payment method• Each payment method is posted to a specified account assignment

• SAP posts payments to the general ledger bank account specified for each payment method

• SAP simultaneously posts the payment to the vendor account

73

Payment ProcessingV1C

Financial Accounting – AP – Outgoing Payment

Trea

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Acc

ount

s P

ayab

le S

uper

viso

rE

vent Periodic invoice

review neededPeriodic payment

to vendors

4.2Select invoices

to be paid

Invoice authorized

Resolve Issues

4.1Review blocked

invoices

4.5Post payments

4.1Release invoice

BankVendor

Vendor Down PaymentCash Discount

Print checks / payment subs

4.3Review & (un)block

Invoices for pmtas needed

End Process

YES

NO

4.4Review & Approve Payment Proposal

Payment Proposal Errors and Warning Messages

• Blocked Items• Vendor master record is blocked for payment

• Invoice is blocked for payment

• If w/out PO reference invoice, the invoice is manually blocked

• If with PO reference invoice, a variance exists between PO, GR, and Invoice

• Item is blocked, lost discount imminent

• Item is blocked and cash discount deadline is about to expire

• No payment possible because debit balance exists• Vendor account has a net debit balance

• Payment methods for this run are not specified in master record or invoice item

• Occurs when an invoice is to be paid via one method, payment run covers a different method. Ex: check invoices will appear with this message in the EDI payment run. Ignore this messages as they will be resolved in the appropriate payment run.

• No valid payment method found• If automatic or electronic payment, no bank data is available

• If Check, no address data is available

75

Create Automatic Payment - F110

• Use this transaction to:

• Execute the payment program

• Generate a payment proposal, as necessary

• Print checks for the payment run (actual check printing is performed by using T-Code SP01)

• The following items must exist in the system:

• House banks

• Accounts at house banks

• Required payment methods

• Payment formsDemonstration

76

Post Outgoing Payment (F-53)

• Used to post manual payments that don’t go through the normal payment run procedure

• Ex. The bank that the payment is coming from does not use the normal channels

• Run by selecting vendor account open items

Demonstration

TaskExercise

77

Down Payments

78

Vendor Down Payment Process

Financial Accounting - Vendor down Payment

V1B

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Vendor requires a down payment

Vendor requires a down payment

4.3Enter down

payment request

4.3Enter down

payment request

Purchase OrderPurchase Order

4.7V1C

Financial AccountingAP - Outgoing Payment

4.7V1C

Financial AccountingAP - Outgoing Payment

Periodic AP Outgoing

Payment

Periodic AP Outgoing

Payment

4.2Approve Purchase

Order

4.2Approve Purchase

Order

4.4Post Down

Payment Using Payment Program

4.4Post Down

Payment Using Payment Program

4.6Enter Vendor

Invoice

4.6Enter Vendor

Invoice

4.1Create Purchase

Order

4.1Create Purchase

Order

4.5Receive Goods

from Vendor to PO

4.5Receive Goods

from Vendor to PO

79

Down Payments ProcessCreate a down payment request

Post the down payment manually or by the payment program

5000 5000

Post the corresponding closing invoice

60000 60000

Clear the down payment with the closing invoice

5000 5000

Pay final invoice

55000 55000

Vendor Acct - Down Payment Request

Vendor Account - Down Payment Vendor Acct - AP

Vendor Acct - APBank Account - Check Clearing

Vendor Acct - AP Expense GL Account

Bank Account - Check Clearing

Vendor Account - Down Payment

F-47

F110

FB60

F-54

F110

No Acct. Entry

80

Process Down Payment Request - F-47

• Down payment requests will automatically get picked up by the payment run to generate a payment to the vendor.

• It pays the down payment based on the due date specified in the request.

• Down payment requests can be tied to a purchase order.

Demonstration

TaskExercise

81

Pay the Down Payment to Vendor – F110

Demonstration

• Now that the down payment request has been made, we will pay the down payment amount to the vendor

• The automatic payment program will pick up this down payment based on the due date entered on the request

82

Enter AP Invoice After Down Payment – FB60

• When the full vendor invoice is entered, a message like this will appear to alert you that a down payment already exists on the vendor account:

• Use the same data from the first FB60 Exercise

Demonstration

TaskExercise

83

Clear Vendor Down Payment – F-54

• Now the invoice will be cleared against the down payment, and only the balance will be paid

Demonstration

TaskExercise

84

Pay the Final Amount to Vendor – F110

Demonstration

• We have paid the vendor for the down payment

• We have received a final invoice from the vendor

• We have cleared the down payment against the invoice

• Now we will pay the final amount due to the vendor. This amount will be the amount of the final invoice minus the down payment amount.

• Ex. Down payment amount: $1000Final invoice amount: $5000Final payment to vendor: $4000

85

Reporting

86

Reporting in Accounts Payable

• Accounts Payable reports are grouped into general categories:

• Aging reports

• Payment proposals

• Check registers

• Due date forecasts

• Vendor account statements

• Withholding Tax (1099)

87

Types of AP Reports

• Aging Report• Details vendor account open items and the length of time the items have

remained open

• Used for internal analysis of vendor activity

• Payment Proposal• Lists open items that are due for payment

• Check Register• Lists all check information stored in the system for each bank account

• Due Date Forecast• Projects open items due for payment in future periods

• Vendor Account Statement• May be formatted to be sent to a vendor or analyzed internally

88

Display Vendor Balance and Vendor Line Items Transactions

89

A few key AP reports

Report Name T-Code Brief Description

Vendor Business S_ALR_87012093 Amount Purchased by Vendor

Vendor Account Balances S_ALR_87012079Account balances - Can drilldown from company code to vendor to document

Display Vendor Balance in Local Currency S_ALR_87012082 Converts to user's local currency

List of Vendor Line Items FBL1N Can view by open, cleared, or all items

Display Vendor Account Balances FK10N Displays grid of vendor balances

AP Aging Report S_ALR_87012078 Display Due Date Analysis for Open Items

Open Down Payments S_ALR_87012105 List of Down Payments Open on Key Date

Cashed Checks Report S_ALR_87012119 Reports what issued checks have been cashed

Check Register FCHN Displays list of checks issued

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Display Vendor Line Item (FBL1N)

• Use this transaction to research and/or modify a specific vendor’s activity.

• This transaction allows you to:

• Narrow the search for open or cleared items

• Narrow by company code

• Search for a vendor’s line items by document number, invoice reference number, etc.

Demonstration

TaskExercise

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Display Account Balances(S_ALR_87012079)

• This exercise will show the drilldown capabilities of the SAP reporting tools

• Use this report to display account balances by company code or vendor

Demonstration

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Display Due Date Analysis for Open Items (S_ALR_87012078)

• aka Aging Report

• Use this transaction to analyze vendor open items by due dates with the option of fine-tuning your selection parameters.

Demonstration

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Withholding Tax Reporting

• Form: S_P00_07000134

• Variant: SAP&US_1099MIS

• 1099 Listings: S_ALR_87012143

• By vendor: S_P00_09000447

Demonstration

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Learning Objectives Review

• The Accounts Payable process and how it is integrated with other business processes in SAP

• Vendor master data key points:• All vendor master data will be entered centrally and stored in SAP

• Vendors will be used by AP and purchasing

Create Vendor

Master Data

Process Invoices

Process Payments

Generate Reports

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Learning Objectives Review

• The three different types of invoices

• Non-PO Invoice

• Invoice that is not tied to a purchase order or goods receipt.

• Used for items such as rent and utilities

• PO/GR Invoice

• Invoice that is tied to and verified against a PO and GR

• Used for purchased materials or services

• Blanket PO Invoice

• Invoice that is tied to a blanket PO with no GR

• Has a set limit for amount and date range

• Ex. Office supplies: $10,000 budgeted for 3 months

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Learning Objectives Review

• The process for handling credit memos

• Accounts Payable Credit Memo – FB65

• Makes debit adjustment to vendor account

• Used to apply a credit when no PO exists (AP invoice)

• Ex. Overcharge

• Purchase Order Credit Memo - MIRO

• Makes debit adjustment to vendor account

• Used to apply a credit when PO exists

• Ex. Price adjustments or returns

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Learning Objectives Review

• AOI’s practice of processing payments

Schedule Payment Run

Print Checks

Create Payment Parameters

Generate Payment Proposal

Review and Edit Payment Proposal

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Learning Objectives Review

• The tasks involved in down payments

• F-47 – Create down payment request – tie to purchase order

• F110 – Post the down payment and pay the vendor through the payment program

• FB60 – Receive and enter corresponding final invoice

• F-54 – Clear the down payment against the closing invoice

• F110 – Pay final invoice. Amount of down payment will be deducted.

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End of Course Knowledge Check

1. Name the 3 types of vendor invoices.

2. Give an example of a non-purchase order invoice.

3. What are the 3 components of a 3-way match for invoice processing?

4. Which code is used to determine the appropriate tax authorities that need to be paid on an invoice? (Hint: In the US, this refers to the state: NC or VA)

5. What are the 5 steps of a vendor down payment?

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Knowledge Check - Answers

1. Non-Purchase Order Invoice, Purchase Order/Goods Receipt Invoice, Blanket Purchase Order Invoice

2. Usually bills fall into this category: utilities, water, phone, rent, etc.

3. Purchase Order, Goods Receipt, and Invoice

4. The Tax Jurisdiction Code

5. The 5 steps are:

1. Enter Down Payment Request – F-47

2. Pay Down Payment to the Vendor – F110

3. Receive and Enter Final Invoice – FB60

4. Clear Down Payment – F-54

5. Pay Final Invoice Minus Down Payment Amount – F110

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Where can I find Help?

3 Steps to Follow:

1. Context Sensitive Help in SAPAOI Help in SAP will take you directly to the work instruction for the t-code that you need help with. See next slide.

2. Super-usersSuper-users will be identified from each department or location to help you with your daily tasks after go-live.

3. Help Desk Submit Help Desk Ticket to local IS Help Desk via phone or e-mail

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Context Sensitive Help in SAP

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Questions and Answers

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