CHAPTER 11: ACCOUNTS

PAYABLE CONFIGURATION
1. Introduction:
The Accounts Payable application component records and manages
accounting data for all vendors. It is also an integral part of the
purchasing system:
Deliveries and invoices are managed according to vendors. The
system automatically triggers postings in response to the operative
transactions. Payables are paid with the payment program. The
payment program supports all standard payment methods (such as
checks and transfers) in printed form as well as in electronic form
(data medium exchange on disk and electronic data interchange). This
program also covers country-specific payment methods.
Postings made in Accounts Payable are simultaneously recorded in
the General Ledger where different G/L accounts are updated based
on the transaction involved (payables and down payments, for
example). The system contains due date forecasts and other standard
reports that you can use to help you monitor open items.
You can design balance confirmations, account statements, and other
forms of reports to suit your requirements in business
correspondence with vendors.
1.1 Creation of GL Account required for Accounts
Payables :
Before starting the configuration of Accounts Payables, let us create
GL accounts required for Accounts Payables. Go to transaction FS00
and create below GL accounts.
2 Configuration Settings
The FI-AP module is implemented for the following company codes:
1009 – ABC Electronics Inc.
2.1 Define Accounts Groups (Vendors)
Via Menus IMG Financial Accounting (New)
Accounts receivable and Accounts payable
Vendor Accounts Master data
Preparations for creating Vendor master
data Define Accounts Groups with
screen layout (Vendors)
Via Transaction Code OBD3
2.2 Create number ranges for Vendor Accounts:
Via Menus IMG Financial Accounting (New)
Accounts receivable and Accounts payable
Vendor Accounts Master data
Preparations for creating vendor master
data Create number ranges for vendor
Accounts
Via Transaction Code XKN1

2.3 Assign Number ranges to Vendor account groups:

Via Menus IMG Financial Accounting (New)
Accounts receivable and Accounts
payable Vendor Accounts Master
data Preparations for creating
Vendor master data Assign number
ranges to Vendor account groups
Via Transaction Code OBAS
2.4 Define Account Cash Discount Taken:
Via Menus IMG Financial Accounting (New)
Accounts receivable and Accounts payable
Business Transactions Outgoing
Payments Outgoing Payments Global
settings Define Accounts for Cash
Discount Taken
Via Transaction Code OBXU

2.5 Define Reconciliation Account for Down payments

made:
Via Menus IMG Financial Accounting (New)
Accounts receivable and Accounts
payable Business Transactions
Down Payments Made Define
Reconciliation Accounts for Down
Payments Made
Via Transaction Code OBYR
2.6 Define Payment Block Reasons :
Via Menus IMG Financial Accounting (New)
Accounts receivable and Accounts
payable Business Transactions
Outgoing Payments Outgoing
Payments Global Settings Define
Payment Block Reasons
Via Transaction Code OB27

3. Vendor Master Data creation:

Via Menus Accounting Financial Accounting
Accounts Payable Master records
Create
Via Transaction Code FK01 /XK01
Reconciliation account:
It is the link between GL and AP sub ledger. It is always a required
field
Sort Key:
When we display the FBL1N report, by default the report is sorted
based on the sort key in the master data. It can be posting date,
document date, document number etc.
Payment terms:
Whether a payment should be made immediately or within
30/60/90 days is designed through payment terms.
Payment block:
For some reasons, if we do not want to make payment to a Vendor,
put a block here.