Accounts Payable Accounting

Overview and Invoice Processing

SAP End-User Training

1
Welcome…

• Introductions

• Housekeeping

• Course Objectives

• Finance Overview

• Course Material

• What’s Next?

• Course Review

2
Introductions

• Name

• Department

• History with AOI

• Class expectations

3
Prerequisites

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

following:
• SAP Basic Navigation

4
Ground Rules
 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!

5
Course Components

• Concepts

• Demonstrations

• Exercises

• Task support
• Work instructions
• Context sensitive help
• Participant guides

• Evaluation

6
Course Agenda

• Overview

• Invoice Processing
• Purchase Order Invoices
• Non-Purchase Order Invoices
• Credit Memos

• Payments

• Analysis and Reporting

• Approximate course time: 2 days

7
Project Overview
SCOPE OF PROJECT

Shop Floor Back Office

Finished Good Inventory Management

Raw Material Procurement
Sales – Order to Cash cycle
Receiving
Logistics
Blending
Finance / Accounting
Processing
Treasury
Quality Control
Tax
Costing
Consolidation
Planning

Aug 08 Oct 08 Dec 08 May 09 Aug 09

US UK & Brazil Argentina Asia & Europe

& Africa
Guatemala

8
Project Overview (cont.)
SAP Modules

9
Finance Overview

Other
Other
Modules
Finance
Modules

Financial Controlling
Accounting (CO)
(FI)

Accounts Cost Element Cost Center Profit Center

Banks
Payable Accounting Accounting Accounting

Accounts General
Receivable Ledger

10
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

11
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.

12
Changing Processes
Current Process
New vendors can be set-up on
demand, as needed.
Not all purchased goods and services
currently require a purchase order.
All payments do not go through AP.
Some departments pay cash or cut
their own checks.
Future Process with SAP
Vendor master data will be maintained
centrally. New vendor set-up will
require a request and will need to go
through proper approvals.
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 will go through AP
13
Finance Overview

14
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

15
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.

16
Financials vs. Controlling

External
FI Requirements
• Balance Sheet
• Income Statement
• Cash Flow

Internal
CO Requirements
• Cost Center Reports
• Sales & Profit Analysis

17
Components of the Financial (FI) Module

• General Ledger Accounting

• Accounts Payable

• Accounts Receivable

• Treasury

• Asset Accounting

• Consolidations

18
FI Account Integration
Generate standard
reports

AOI

Subledger General Financial

Statements
automatically Ledger
updates G/L

AR Fixed Assets AP
Subledger Subledger Subledger
Posted vendor
invoices update the
Account inquiry subledger
Invoices
Display balances & line items

Automatic Manual Reverse Held

Postings Postings Documents Documents

19
New GL Account Structure
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 GL Cost
Code Account Center
20
SAP Accounts Payable Overview

Create Vendor Process

Master Data Invoices

Process
Generate Reports
Payments

21
Master Data

22
What is Master Data?

• Master data is any information

that is considered to play a key
role in the core operation of a
business. AP

• It may include data about

vendors, materials, customers, TR AR
banks, general ledger accounts,
inventory, suppliers, analytics
and more. Master
Data
• Master data is shared by all AOI
groups across the organization GL OTC
and is stored on one system.

MM

23
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

24
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

25
Vendor Master Records:
10 Key Points (Cont’d)
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

26
Vendor Master Data Views

General View Accounting View Purchasing View

Name and Reconciliation Order currency

address account
Incoterms
Bank data Payment terms
Partner
Tax info Payment functions
method
Contact
person

• General View applies across company codes and purchasing

organizations

• Accounting Views apply to specific company codes

• Purchasing View apply to specific purchasing organizations

27
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

28
 Vendor Creation / Maintenance Process
PTP 2 Vendor Master
3.04.02 – Procure to Pay

Requirement for a
new Vendor Master
Event
Requisitioner

Request new No Further Advise

Yes
Vendor Master Action Required Requisitioner

Extend Vendor
Master to
Administrator

Does Vendor Master Does Vendor Master Create Vendor

Master Data

No Yes required
exist in Plant? exist in SAP? Master
Purchasing
Organization

No

29
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 Task
Exercise

30
Tax

31
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

32
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

33
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

34
Invoice Entry and
Management
Non-Purchase Order
Invoices

35
Key Terms and Definitions – Invoices

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

• Credit memo • Obtained from the vendor and

entered into SAP when
materials are returned to or
were not received from the
vendor
36
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

37
Non-PO Invoice Process
V1A
Financial Accounting - AP -Manual Invoice/Credit Memo

Non-PO related
Event

Vendor Invoice is
received
AP Supervisor

Approve
invoice /
credit memo

4.1 4.2
Enter Vendor Enter Vendor
Invoice Credit Memo
Accounts Payable

1 2
Expense / Accrual Vendor
Vendor Expense / Accrual

38
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

39
Simulating and Posting Invoices

The save button will

post an invoice.

Simulating allows you to

preview the financial
document before posting

40
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 Task
Exercise

41
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

42
Reverse an Invoice (FB08)

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

declared

43
Invoice Entry and
Management
Purchase Order Invoices

44
Procure-to-Pay (Purchasing) Process

Karl Einstein Date

Bank transfer 9,500

Requirement Determination –
Payment Processing Purchase Requisition Created

Requisition Approval
Invoice Verification

Request for Quotes (RFQ)

Goods Receipt
Vendor Determination
Purchase Order
Generation &
Approval

45
Invoice Processing – PO Invoices

Post
Invoice A/P Clerk
Invoice A/P Clerk invoice
received enters invoice
received enters invoice document

SAP Payment Investigate/

SAP Investigate/
performs 3- block invoice resolve
performs 3- resolve
way match as required issues
way match issues

Unblock Perform
invoice as Perform
payment
required payment
process
process

Denotes Task Performed in SAP

46
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

47
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.

48
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

49
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!

50
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

51
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 Task
Exercise

52
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

53
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 Task
Exercise

54
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.

55
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

56
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).

57
Invoicing Plan Settlement - MRIS

• Use this transaction to run the invoicing plan settlement

Demonstration Task
Exercise

58
Credit Memos

59
Accounts Payable Credit Memo

AP Credit Memo
1. Received from

A P
vendor and entered

S
by AP to process
debit adjustments to
vendor accounts

Check

P
2. Check amount is

SA reduced by
amount of credit
memo

60
Purchase Order Credit Memo

PO Credit Memo
1. Received from vendor and
entered by AP to process
SAP against GR and PO-verified
invoices

Return Check
3. Check amount is
2. Physical return
or rejection can reduced by
amount of credit
SAP
be processed
memo

61
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

62
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 Task
Exercise

63
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

64
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

65
Payments

66
Outgoing Payment Processing

Vendor A Vendor A Vendor B Vendor C

Invoice In Invoice In Invoice In Invoice

Manual Payment
Payment Program

Check Wire ACH

67
Automatic Payment Program –
The Four P’s (and sometimes an E)

Parameters 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

Proposal Run • Groups items for payment

• Selects relevant payment methods and banks

Provides the opportunity to check the results and make

Edit Proposal (Optional) edits BEFORE the payment program is run (e.g., block an
invoice for payment).

• Posts payment documents

Payment Run • Clears open items

• Prepares data for printing of payment media

Print Generates payment media (checks, files for ACH, files for
third parties to print checks, etc.)
68
Payment Processing

Generate
Create Payment
Payment
Parameters
Proposal

Review and Edit

Schedule
Payment Print Checks
Payment Run
Proposal

69
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.)

70
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

71
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

72
Payment Processing
V1C
Financial Accounting – AP – Outgoing Payment
Event

Periodic invoice Periodic payment

review needed to vendors

4.1
Invoice 4.1
Review blocked YES
authorized Release invoice
invoices
Accounts Payable Supervisor

Resolve
NO
Issues

Print checks /
payment subs

4.3
4.2
4.5 Review & (un)block
End Process Select invoices
Post payments Invoices for pmt
to be paid
as needed

Bank
Vendor
Vendor Down Payment
Cash Discount
Treasury

4.4
Review & Approve
Payment Proposal

73
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
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 forms
Demonstration

75
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 Task
Exercise

76
Down Payments

77
Vendor Down Payment Process
V1B
Financial Accounting - Vendor down Payment

Periodic
Event

Vendor requires a
AP Outgoing
down payment
Payment

4.2 Purchase Order

Buyer

Approve Purchase
Order
Accounts Payable

4.4
4.1 4.3 4.7
Post Down 4.6
Create Purchase Enter down V1C
Payment Using Enter Vendor
Order payment request Financial Accounting
Payment Program Invoice
AP - Outgoing Payment
Warehouse

4.5
Clerk

Receive Goods
from Vendor to PO

78
 Down Payments
F-47 Create a down payment request
Process
Vendor Acct - Down
Payment Request
No Acct. Entry

F110 Post the down payment manually or by the payment program

Vendor Account - Bank Account -
Down Payment Check Clearing
5000 5000

FB60 Post the corresponding closing invoice

Vendor Acct - AP Expense GL Account

60000 60000

F-54 Clear the down payment with the closing invoice

Vendor Account -
Down Payment Vendor Acct - AP
5000 5000

F110 Pay final invoice

Bank Account -
Vendor Acct - AP Check Clearing
55000 79 55000
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 Task
Exercise

80
Pay the Down Payment to Vendor – F110

• 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

Demonstration

81
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 Task
Exercise

82
Clear Vendor Down Payment – F-54

• Now the invoice will be cleared against the down

payment, and only the balance will be paid

Demonstration Task
Exercise

83
Pay the Final Amount to Vendor – F110

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

Demonstration

84
Reporting

85
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)

86
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

87
Display Vendor Balance and Vendor Line Items
Transactions

88
A few key AP reports

Report Name T-Code Brief Description

Vendor Business S_ALR_87012093 Amount Purchased by Vendor

Account balances - Can drilldown from company
Vendor Account Balances S_ALR_87012079 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 Task
Exercise

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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

Create
Process
Vendor
Invoices
Master Data

Process Generate
Payments Reports

• 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

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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

Generate
Create Payment
Payment
Parameters
Proposal

Review and Edit

Schedule
Payment Print Checks
Payment Run
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

100
Where can I find Help?

3 Steps to Follow:

1. Context Sensitive Help in SAP

AOI 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-users
Super-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

102
Questions and Answers

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