Accounts Payable

Atlas Finance Accounts Payable Training up to date as of R3.4 P7 2014

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SAP contains a report to list purchase orders by vendor to compare

goods receipt quantities against invoice receipt quantities thus
showing the variance between the two and the amount sitting on
GRIR.
This report should be used in conjunction with analysis carried out in
the G/L to investigate uncleared items on GRIR accounts.
The report is a good tool to identify where old supplier invoices are
either outstanding and also where goods receipts have perhaps not
been entered

Accounts Payable

Use this report to check goods and invoice receipts when the purchasing
documents show some discrepancy
Drill down is available to review the individual documents (goods receipt,
purchase order/service entry, or invoice)
Those items in red should be investigated, where the Invoiced quantity >
Received quantity. This means that budgets have not yet been charged for
amounts

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Information Systems>General Report Selection>Materials

Management>Inventory Management

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The GRIR account only relates to quantity booked for the goods receipt and
the invoice
Any quantity differences between Goods Receipt and Invoice Receipt need
to be cleared from the GRIR account
A process for GRIR clearing should be designed by Units but the account
should be checked EVERY Period. This process should include the
following items as examples:
Who is responsible for clearing the GRIR?
Who is responsible for highlighting GRIR difference?
When will GRIR clearing take place each Period?
Is there a certain age of item where the GRIR will be cleared
automatically?
How is regular checking of the GRIR account built into the AP Role?

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This slide shows an example where a goods receipt has been posted
but there is no invoice
The PO is for a quantity of 5 and this quantity can be seen on the GR
on the Purchase Order History tab
The screenshots come from MR11 and ME23N

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If this good receipt was perhaps done in error it can be cleared

through GRIR Maintenance referred to as Account Maintenance in
the system
Account Maintenance posts a KP document and can be seen in the
PO history tab. In this view there will be no value just a quantity
booking
When account maintenance takes place in the scenario where the
goods receipt is greater than the invoice the following posting takes
place in FI:
DR GRIR Account
CR P&L expense account (this is dependent on the type of PO
and the account assignment
In Controlling the P&L Expense CR will also be posted to a Cost
Centre or an alternative object depending on the account assignment
of the PO
Effectively this posting reverses the GR posting to overcome the
delivery surplus

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This slide shows a more complicated scenario where there are

multiple invoices and goods receipts
In this case a quantity of 12 has been goods receipted and a quantity
of 4 has been invoiced
The quantity difference on the GRIR account is therefore 8
The screenshots come from MR11 and ME23N

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If account maintenance was to take place against this PO what would

happen:

What document type would be posted?

What quantity would be posted?

What value would be posted?

Which account would be debited?

Which account would be credited?

Why?

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This slide shows the posting that takes place based on the example
shown on the previous slides
When the GRIR clearing is posted the same postings take place in
FI:
DR GRIR Account for quantity of 8 and a value of 2,640
CR P&L expense account for quantity of 8 and a value of 2,640
In controlling this is also posted to a Cost Centre, which is
determined by the account assignment on the PO
To answer the questions on the previous slide:

What document type would be posted? KP

What quantity would be posted? 8

What value would be posted? 2640

Which account would be debited? GRIR

Which account would be credited? P&L Expense

Why? Effectively the P&L has been overcharged

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This slide shows an example where an invoices has been posted but
the PO is awaiting a goods receipt
The PO is for a quantity of 1 and this quantity can be seen on the
invoice posting on the Purchase Order History tab
The screenshots come from MR11 and ME23N

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In order to effectively post a goods receipt and clear the GRIR

account, Account Maintenance can be carried out
Account Maintenance posts a KP document and can be seen in the
PO history tab. In this view there will be no value just a quantity
booking
When account maintenance takes place in the scenario where the
invoice is greater than the goods receipt the following posting takes
place in FI:
CR GRIR Account
DR P&L expense account (this is dependent on the type of PO
and the account assignment
In Controlling the P&L Expense DR will also be posted to a Cost
Centre or an alternative object depending on the account assignment
of the PO
Effectively this posting creates a GR posting to overcome the invoice
surplus

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Account Maintenance is posted using MR11

This should be used when there is an outstanding balance in the GRIR
account and it will cannot be automatically cleared
MR11 reads the MM purchase order history table (EKBE) to allow
maintenance of the GRIR account
The PO history table stores all of the events which have occurred to the
PO/Schedule Agreement during its life including the two most important
events: goods receipt and invoice receipt
GRIR maintenance is another type of event in the purchase order history
GRIR maintenance is used to complete the purchase order history only if
there are quantity (not amount) differences in the purchase order
Any GRIR imbalance stemming from quantity difference between PO and
Invoice can be cleared through MR11 if:
The quantity received is larger than the quantity invoiced and no more
invoices are to be received
The quantity invoiced is larger than the quantity received and no more
goods are to be received
Goods have been received, but invoice has been yet to received and no
invoice is expected any more

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Logistics>Materials Management>Logistics Invoice Verification>GRIR

Account Maintenance

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If an account maintenance posting is posted in error with MR11 and needs

to be cancelled transaction MR11SHOW can be used
When the document is reversed:
The account maintenance document is cancelled
The account maintenance document is updated in the purchase order
history
As a result, the original difference on the GRIR clearing account is
restored
The GRIR clearing account will need to be cleared again by means of more
goods receipts, invoices or by clearing it manually again

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Logistics>Materials Management>Logistics Invoice Verification>GRIR

Account Maintenance

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There are two ways to enter an AP invoice into SAP, the selection of which
is dependent on whether the invoice relates to a PO or not.
PO Related can be posted using:
Park Logistics Invoice Verification - MIR7
Logistics Invoice Verification MIRO
Non-PO Related can be posted using:
Park Vendor Invoice - FV60
Vendor Invoice Posting - FB60

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Invoice postings without reference to a PO should only happen in a

few exceptional circumstances
Normal business process requires that purchases are made using
purchase orders to maintain the appropriate controls
FI postings can therefore only made in a few exceptions for example:
Government Mandatory Payments
Purchasing Card spend at allowed levels in allowed categories
Invoices approved by auxiliary systems where the approval
process has been signed off by Finance and limited to:
- Travel Expenses
- Payroll
- Trade Expenditure,
- Serengeti Legal Expenses
These exceptions are highlighted in the AP golden Process Section
P-150-150

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Preliminary posting or parking allows Users to enter data and store it without posting it. This
allows you time to ensure that the analysis for the charge is correct.
A document is parked when a user cannot finish the document (invoice or credit memo) or
needs to gather further information before posting the document
Parking a document assigns a document number to the transaction without updating the
account transactions or totals
Parked documents can have any field on the document changed or updated, which allows
for another user to verify that the right accounts were being used, etc. Parked documents
can be changed as often as required
When no further changes are required, it is possible to post the parked document. Only
then does the system carry out the normal account movements and make the necessary
updates
Parked documents must be posted in order to update the accounts balance
When a parked document is posted, the document number does not change.
Parking a document should not be confused with holding a document. If you hold a
document it is simply suspended and no accounting or other update takes place. Held
documents are assigned a manual document reference.
The advantage of parking documents is that you can evaluate the data in the documents
online for reporting purposes from the moment they are parked, rather than having to wait
until they have been completed and posted.
The preliminary posting function can be of great advantage if:
Users are interrupted when entering an invoice, this saves duplicate data entry
Users wish to clear up some questions before you post an invoice.
Users wish to split the invoice authorisation process. One employee can, for
example, park an invoice without checking it, while another carries out the actual
checks and posts the document after making any necessary corrections
Depending on the G/L account it may require a cost object assignment e.g.; Cost
Centre, Internal order

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To post a parked document, select the parked document from the list of
documents, then the parked transaction is displayed.
To make changes and re-park the document, types the changes and select
the Save as Completed button.
To post the document, select the Post button. Once the document is posted,
the amounts are update the account balances.
A posted document has the same document number as the parked
document.
Select the Simulate button to see the entire document before posting.

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Accounting>Financial Accounting>Accounts Payable>Document

Entry>Document Parking

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Accounting>Financial Accounting>Accounts Payable>Document

Entry>Document Parking

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FBV3 can be used to display one or many documents.

If the document number, company code, and year of the parked document
is known, select Enter to open the document for completion
If the document number of the parked document is not know, select the List
button and use the search criteria. This search report is used to find the
document number of the parked document
From the list of parked documents, users can review, alter, and post each
document individually.
To display a document double click to move to the Display Parked
Document screen FV60.

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Accounting>Financial Accounting>Accounts Payable>

Document>Parked Documents

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FBV0 can be used to post one or many documents.

If the document number, company code, and year of the parked document
is known, select Enter to open the document for completion.
If the document number of the parked document is not know, select the List
button and use the search criteria.
The search report is used to find the document number of the parked
document
Status of the document can be checked using the Check icon status then
appears in the status column
Parked documents can be highlighted/selected to be posted
From the list of parked documents, Users can review, alter, and post each
document individually.

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Accounting>Financial Accounting>Accounts Payable>

Document>Parked Documents

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Transaction Select either Invoice or Credit Memo to indicate the type of transaction.
Header:

Basic Data tab fields:

Company Code - SAP remembers the last used company code; you must verify this field.

If the wrong company code is displayed, select the Company Code button or use the menu path: Edit > Change Company
Code and type the new company code.
Vendor The organization that sent the invoice.
Invoice date The date on the invoice. This date, in conjunction with the vendors payment terms (on the vendor master)
determine the payment due date for this invoice. The Automatic Payment program uses the Invoice Date field to determine which
payment run the invoice will be included in.
Posting Date - Determines the period to post the invoice to and defaults to system date (required).
Reference The vendors invoice number is entered in this field (required).
Amount The total amount of the invoice including taxes into this field.
Currency This field is not labeled but is to the right of the Amount field. Indicate the currency that the payment is to be issued in.
Tax amount The amount of the taxes for this invoice.
Tax code This field is not labeled, but is to the right of the Tax Amount field. The tax code controls whether or not the item is to
be taxed and at what rate. For VAT type taxes, the tax code entered assists in calculating the tax amount and control where it is
posted in the GL.
Text Enter a description of the invoice.
Details tab fields:
Exchange Rate enter a specific exchange rate for foreign currency journal entries. Leave blank to default the rate from the
exchange rate table.
Translation Date used to select a specific exchange rate from the exchange rate table.
Calculate Tax - select this check box to have taxes calculated automatically at the time of posting.
Line Item Fields:
Status (first column) indicates the status of the line. A checkmark () the line is ok.
G/L Acct The General Ledger account to use in recording the expense portion for the vendor invoice.
Debit/Credit Indicator This determines how the item posts to the expense account. For AP invoices, the default is debit. When
entering a credit memo, the default is credit.
Amount The amount for this line (required). SAP enters an amount to balance the entry
Tax Code - Use this field to indicate if the transaction is tax relevant. Required only if a tax category has been specified for the
vendors master record (optional).
Tax Jurisdiction - This field represents how the taxes are calculated for the US by indicating the state and local tax areas
(optional).
Value Date - used for Foreign Currency valuation date (optional).
Text This field is used to enter an explanation of the line entry about the transaction. This helps when trying to follow an auditing
trail at a later date.

Type + to copy the last text entered.

Additional Accounting Information Cost Center, Internal Order, or Profitability Segment fields are to be completed as required.

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Payment tab fields:

Baseline date this date is used with the payment terms to calculate the due
date.
Due on This date is a function of the baseline date and payment terms and
controls when this invoice will be paid by the Automatic Payment program.
Payment terms Payment terms are agreed upon with the vendor and entered
into the vendor master record. However, this field can be overwritten and new
one time payment terms entered that are only good for this document.
Payment Method A code to indicate the form the payment is to be issued. If a
vendor accepts multiple forms of payment (check, wire, etc.) then a particular
method can be selected for this item. If the field is blank, the vendor is paid
based on a valid payment run using a payment method acceptable to the
vendor. For example if the vendor can be paid by check or wire and this field is
left blank, the payment run that is run first (check or wires) will pick up the item
and pay it.
Payment Method Supplement This field controls the grouping of payments
into specific categories that may have additional checks assigned to it. For
example, a company could want checks over $100,000 to be printed separately
from lesser amount checks so they can be routed for an additional signature.
Payment block Select this field to prevent payment of this invoice. A payment
block must be removed from an invoice before it can be paid.
Details tab fields:
G/L the reconciliation account for this vendor. This is the GL account where
the transaction figures are recorded.
The other fields on this tab are not used at this time.
Tax tab fields:
Tax doc currency The amount of the tax on the invoice that was entered on
the Basic Data tab. This tab allows the user to actually divide the tax amount
over multiple line items of an invoice (provided they have the same tax code).
Tax code The tax code that was specified on the Basic Data tab.

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Notes tab fields:

Item Long text A free-form text area for additional information about the
invoice. The text fields on the Basic Data tab, and the Line Item tab are limited
in the number of characters that can be entered. More text can be entered
here, including text which has been cut and pasted from Word.

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If this message appears, the user review the indicated document number
and verify that the invoice is not being entered again.
There is an internal review mechanism to warn a user invoice entry matches
with an existing entry

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When an FI invoice is posted the following posting takes place in FI:

CR AP Reconciliation Account 953001
DR P&L Expense
In Controlling the P&L expense posting will be against a controlling
object such as a Cost Centre, IO or WBS
The CR against the AP reconciliation account is simultaneously
posted to the AP subledger
An FI invoice has a document type of KN

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Accounts Payable

It is possible to enter an invoice (or a credit memo) without posting it and simply
"park" it. The system does not in this case make any postings
A parked document can be changed as often as required. When data is added or
changed, the changes are noted by the system. When no further changes are
required, it is possible to post the parked document. Only then does the system
carry out the normal account movements and make the necessary updates
Once the documents are posted GL Accounts and Vendor Line Items are updated

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Accounting>Financial Accounting>Accounts Payable>Document

Entry

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Mass upload of FI invoices

Mars Add Ons>Finance>Accounts Payable

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When an FI credit memo is posted the following posting takes place

in FI:
CR P&L Expense
DR AP Reconciliation Account 953001
In Controlling the P&L expense posting will be against a controlling
object such as a Cost Centre, IO or WBS
The DR against the AP reconciliation account is simultaneously
posted to the AP subledger
An FI Credit memo has a document type of KG

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Accounting>Financial Accounting>Accounts Payable>Document

Entry

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Accounting>Financial Accounting>Accounts Payable>Account

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Posted documents are completed documents that have a document number

and that update the transaction figures and account amounts in SAP
Only a few fields can be changed of a posted document
Need the document number, company code, and year; can search for
document number by Document Type (Vendor Invoice) and/or user ID
To view the original document, select the menu path: Environment >
Document environment > Original document
To view additional accounting documents, select the menu path:
Environment > Document environment > Accounting documents
To edit the Document Header, choose Extras > Document Header > Goto >
Document header.
You can only change two Document Header fields: Reference and
Document header text.

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Accounting>Financial Accounting>Accounts Payable>Document

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If an invoice is posted that has a blocking reason, the field Payment block is filled
in the vendor line item of the invoice document. Financial Accounting is then
unable to settle the invoice
A blocked invoice must be released for payment in a separate step, possibly after
verifying with the purchasing department or vendor
In this step, the payment block A is deleted using FB02

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Accounting>Financial Accounting>Accounts Payable>Document

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See the before and after field values for a specific document
Must know company code, year, and document number (no list button)
Use the Display a Document (FB03) screen to find the document number

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Accounting>Financial Accounting>Accounts Payable>Document

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The document type classifies the accounting documents. It is noted in the

document header.
The document type specifies the following, among other things:
Which account types can be posted in a document
Whether cash discounts are to be taken into account (for vendor
postings). The cash discount percentage rate is managed in the general
terms of payment in the vendor or customer master in Financial
Accounting.
Documents can be viewed, sorted and archived by document type.

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Once an entry has been posted in the system, the only way to change
critical fields, is to reverse the document
The system generates a reversing document that posts the proper reversing
debit and credit amounts.
If you do not make an entry in the Reverse document posting date field or
Reverse Document Posting Period field, the system uses today's date or the
current posting period.
The program generates a list of all the documents which can or cannot be
reversed or have already been reversed.
The period of the original document must be open to post a reversing
document. If the period is not open, you can overwrite the Posting Date field
using a date in the current period.

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Accounting>Financial Accounting>Accounts
Payable>Document>Reverse

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After the invoice has been posted, the document appears as an open item on the
vendor account
This means that the open item, once it becomes due for payment, can be picked
for the payment proposal list and the subsequent payment run
The payment run therefore:
Selects invoices for payment based on the payment terms in the vendor
master or purchase order
Generates payment for released invoices.
Updates accounting information

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The payment program has the following functions:

Automatically selects the open items to be paid and the exceptions, such as
blocked items
Creates payment lists and logs
Carries out payment using the proposal list.
There are 3 steps in the Payment Program Flow:
1. Proposal Run
The proposal run checks the accounts and documents specified in the
parameters for due items
The proposal list reviews Vendor open items that are due to be paid and
proposes them for the payment run
2. Payment Run
The payment run includes only the open items contained in the proposal
list.
The payment program posts documents
3. Generation of payment transfer medium:
The payment program provides the data for the form printout and for
creating the data carriers, the payment advice notes and the payment
summaries.

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Before the payment program can be used the following items need to
be defined:
Vendor bank accounts details
The required payment methods are completed on the Vendor
Master Data
The necessary payment forms are set up

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The payment proposal is run first, in order to generate proposal data that can be
edited before the actual payment run.
The proposal can be executed by the AP Clerk
The payment proposal can be run in the background or immediately.
The following parameters need to be entered for the payment proposal. The
parameters represent the selection criteria of the vendors to be paid:
Run Date = today's date
Identification = Payment Run ID usually includes the day
The payment status shows you the current state of the payment proposal job.
Document entered to = the date in which you want to pay vendors up to
Company Code = Company Code to be included in the payment run
Payment Methods = payment methods to be included in the proposal list
Next posting date = next payment run
Vendors Vendor to be included in the payment proposal
The Document Entered To field and the Next P/Date field determine which
invoices are selected for payment by the proposal run
The due date of the items is always determined via the baseline date and the
terms of payment in the open items.

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To create the proposal run click on the proposal button

The proposal run:
Checks the accounts and documents specified in the parameters for due items
Groups due items for payment
Selects the relevant payment methods, house banks, and partner banks
The box that follows shows that the payment proposal can be started immediately
If the Create Payment Medium check box is not displayed, the Printout/Data Medium tab was not completed
during the Parameters step.
Press the Enter key and to receive two messages: Parameters have been entered and Proposal is running.
Continue to press the Enter key or select the Status button to monitor the status of the payment proposal. When
the message Payment Proposal has been created displays, the proposal is completed.
The main screen of the Automatic Payment Transactions program is the Status screen. It indicates the status of
each step: not yet started, created, in process, or completed.
The first step involves maintaining the parameters, additional log values, and payment medium values.
The selection criteria fields on are on the Parameters tab. The parameters define which vendors and
invoices the payment program includes in the automatic payment run.
The Additional Log tab allows you to determine what information is printed on the log. The log is
useful in troubleshooting why an invoice was or was not selected for a specific payment run.
The Printout/Data Medium tab is used to specify the specific print program variants for the payment
printout portion of this process.
Parameters tab key fields:
Run Date The date on which the payments process is to be run (required).
Identification - A user-defined identifier, typically your initials for the payment run (required).
Additional Log key fields:
Select the Due Date check box - List all invoices for the due date check
Select the Payment Method Selection In All Cases check box Lists all invoices that are selected
based on the payment method of the payment run; this check box is usually only used when testing the
payment run
Select the Payment Method Selection If Not Successful check box Lists invoices that will not be paid
in this proposal run because of the payment method of the payment run
Select the Line Items Of The Payment Documents check box - All posted documents in the log are
printed with the items
Type in the account numbers for the vendors or customers that you want displayed in the log.
Data Medium tab key fields:
For the payment programs indicate the variants specific for the company code.
To view the variant, click the variant name and then click the MAINTAIN VARIANTS button
Indicates printer, paying company code, payment method, etc.

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When the payment proposal is created, the system creates the

proposal list detailing the payments proposed.
In addition to the proposal list the exception list can be displayed,
which displays blocked items and all open items which the payment
program did not propose for payment
Any required editing can then take place
The Payment proposal should be reviewed and checked to ensure
the payments are appropriate

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The logs of the payment proposal can be run and reviewed as part of
ongoing AP maintenance to ensure that invoices are unblocked in a timely
manner

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It is possible to make changes when editing the payment proposal

The following items can be changed:
- Payment method
- Bank details
- Items paid - adding payment blocks
All changes made affect only the payment proposal
No changes should be made to the source documents and the
payment block should not be released. Releasing the payment block
should only take place after the standard approval process take place

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The Payment Porposal can be checked and edited

To review the proposal, select Edit > Proposal > Display Proposal
The Payment Type icon indicates, by vendor, the items which will be paid in
the Payment Proposal/Run
The Exception Type icon indicates, by vendor, the items which will not be
paid in the Payment Proposal/Run
To open exception items, double click exception vendor row
To view error message, double click exception item
If the Proposal Run is not correct, delete it, change the parameters, and rerun the proposal run
To delete the proposal, select Edit > Proposal > Delete

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Once the payment proposal has been accepted the payment run can
be scheduled
During the payment run, the system:
Create and posts the payment documents.
Matches the payment document to the open item and clears the
open items. Each open item is marked as paid/closed.
Prepares the data for the printing of payment media.
The payment log is created showing the list of payments made by the
run
Several programs are used in creating the payments:
The payment program creates the payment documents and
prepares the data for printing the forms
Various payment medium programs use the data prepared by the
payment program to create forms or files for the data media
During the payment proposal run, the accounts of the selected
vendors are locked until the payment process is completed for this
proposal run. Any selected vendors are excluded from any other
payment proposal runs to avoid duplicate payments

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When the payment run is completed the following posting in made in

FI:
DR AP reconciliation account 953001
CR Bank Account
In Controlling the credit against the Bank account is posted the a
generic profit centre in PCA
The AP Subledger is debited as the Vendor is simultaneously posted
to at the same time as the AP reconciliation account
This effectively clears the open item on the Vendor
A Payment Run uses document type ZP

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The Payment Program uses documents (open items) and Master data
(Vendor/Customer Records) information to generation various datasets including:
REGUH - Data on the payee or payment method is, for example, to be found in
REGUH.
REGUP - Information from the individual documents is to be found in REGUP.
REGUD - The complete bank data and the amount specifications are to be found
in REGUD.
The print program creates the payment media, payment advice notes as well as the
payment summary from the information contained in REGUH, REGUP, and REGUD.
Information can also be taken from the payment tables
The payment media can include:
The payment media (checks) are printed.
IDocs are generated for EDI.
The payment data is sent to DME administration

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An invoice will not be selected for the Payment Proposal or Payment Run if:
It has been selected by another proposal run
It has been manually fully cleared
It has been blocked for payment
If the vendor has been blocked for payment

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By default Credit memos are due immediately for payment

If the amount due from the vendor (credit memos) is greater than the
amount owed to the vendor (invoices), the invoices will not be paid via
payment run - this occurs even if the invoices are due
For the payment run to pay the due invoices without taking the credit memo
into account:
Block the credit memo
Run the payment run to pay the due invoices
Unblock the credit memos for the next payment run, if applicable

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Accounting>Financial Accounting>Accounts Payable>Periodic

Processing

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ERS stands for Evaluated Receipt Settlement

This is the procedure used for settling goods receipts automatically
without waiting to receive an invoice from the vendor
Instead, the system posts the invoice document automatically on the
basis of the data in the PO and GR.
This means that a Vendor invoice is no longer required and invoice
variances are eliminated
Settlement documents created can automatically be sent to the
vendors for verification
The invoice amount is determined from the prices entered in the
order, the terms of payment, the tax information and the delivery
quantity entered in the goods receipt

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ERS should only be used when we have a clear agreement on the

conditions with the vendor.
It can be used where there is a regular flow of goods such as:
- Raw materials
- Packaging materials
- Logistics Costs
POs in the system can be regularly updated
Credit memos can also be created using ERS: if an invoice has
already been posted for a goods receipt and goods have since been
returned, the system automatically generates a credit memo for the
returned quantity during the next ERS run.

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There are certain pre-requisites for ERS to take place:

The Vendor must agree to the conditions for ERS
The Vendor Master record must be flagged as ERS: The system
then sets the ERS indicator as a default in each item when a PO
is created for the Vendor

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Other pre-requisites include:

Goods-receipt-based Invoice Verification must be defined for the
PO item
The order price of the materials may not be an estimated price
A tax code must have been maintained in the PO item
Output Type and Layout must be defined for the company code
How often the self bill invoice documents will be created should
be defined. The unit should decide at implementation how often
the batch job will execute to create the self billing invoice
document. It should not exceed 7 days which is the life cycle of
the service PO document

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The screenshot on the slide shows the evaluated receipt settlement

posting
The following options can be set for the creation of invoice
documents:
One invoice document per vendor
One invoice document per purchase order
One invoice document per purchase order item
One invoice document per goods receipt document

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Logistics>Materials Management>Logistics Invoice

Verification>Automatic Settlement

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This slide shows an example of the output generated by selfbilling

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Logistics>Materials Management>Logistics Invoice

Verification>Further Processing

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Consignment Materials are stored at Mars premises but actually

belong to a Vendor
The Vendor supplies these goods so that they are available at any
time, but does not initially invoice for the goods.
Mars only take ownership when the goods are called off to the factory
Consignment selfbilling is used to carry out the generation of selfbilling documents to represent supplier invoices for consignment
stock once it has been withdrawn from consignment stock held by the
Vendor.

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Accounts Payable

Only when materials have been withdrawn from stock to be used

does payment become due for the quantities used.
Mars do not expect vendor invoices for goods withdrawn from
consignment stocks. Instead posted withdrawals are settled and a
statement of the settlement is sent to the Vendor as a consignment
self bill invoice
A 501k movement is used to move stock from the Supplier to the
Warehouse. At this point it is still consignment stock under the
ownership of the Vendor
Once a 901k movement is complete (101k may also be used if POs
are used for consignment) this brings the stock into Mars Ownership
This stock is then ready for consumption in the factory

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When consignment stock is issued to Mars stock, the system makes

a posting based on the consignment price
In FI the following posting takes place:
DR Stock
CR Consignment Vendor Control account 953020
The document type used is WA

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When the consignment withdrawals are settled, the liability created at

the time of the withdrawal is cleared
In FI the following postings is made:
DR Consignment Vendor Control account 953020
CR AP reconciliation Account 953001
Once the AP reconciliation account 953001 is posted to there is a
simultaneously posting to the AP subledger against the Vendor
The stock posting is also posted to PCA using the Profit Centre
contained in the Material Master Record
The document type posted is RE

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This screen shows the result of the consignment settlement process

It shows in the information text column that a document has been
created

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Logistics>Materials Management>Logistics Invoice

Verification>Automatic Settlement

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This slide shows an example of the output generated by consignment

selfbilling process

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Not on SAP menu

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Accounts Payable

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Accounts Payable

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Accounts Payable

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The requirement for downpayments is becoming more common, especially for

capital purchases.
A down payment is a payment on account before the business transaction is
concluded.
Down payments are often used for short or medium-term financing. For example,
a down payment may be used if a manufacturer is unable to finance the production
of goods alone because of a long production period. Down payments will generally
be made before production begins or after partial completion.
Down payments must not be balanced with other receivables or payables and
must be displayed separately on the balance sheet. On the balance sheet, down
payments made are displayed on the assets side and down payments received on
the liabilities side.
Once the goods or services for which the down payment was made have been
received, payment for the final settlement will be cleared either manually or using
the payment program. The down payment will then no longer be displayed as
such.
After the invoice amount outstanding has been paid, it can be cleared taking into
account the down payment.
The process for downpaymetns is as follows:
1. Create a Down Payment Request (F-47) to indicate the need for
advance payment (optional)
2. The downpayment can be paid in two ways:
- Using the Payment Program F110
- Directly through F-48, in this case F-47 is not required

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3. Payment for the down payment is issued to the Vendor

4. The Vendor sends a closing invoice for the activity and this is entered
into the system
5. The downpayment should be cleared against the invoice using F-54
6. The final payment settlement is processed

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A Down payment request does not update the GL, instead when a down
payment request is posted the system records the line item in a special G/L
account.
Via this account, an overview of all down payments due at any time can be
seen.
It also impacts Treasury regarding Cash Flow and Liquidity Forecast reports
To enter the down payment request the following information is required:
Vendor account
Amount
Target Special GL indicator - This will correspond to the down payment
later in the cycle. This specification cannot be changed later. This value
determines which type of account (vendor, fixed assets, or project) can
be used when entering the down payment request.
Due date - used as the baseline date for cash discounts and payment
terms.
There is not an offsetting entry to the downpayment request and it does not
appear on the PO

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Accounts Payable

Accounting>Financial Accounting>Accounts Payable> Document

Entry>Down Payment

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A Down payment request does not need to exist before creating a down
payment
Posting a Down Payment to a Down Payment Request:
To post a down payment made against a down payment request,
select the down payment request during the posting of the down
payment.
The system only needs the Vendor's account number, bank account
number, and special G/L indicator to complete the posting.
The system takes all other data, such as amount or tax code, from
the down payment request.
To post a Down Payment without reference to a Down Payment Request
the down payment can be posted directly.
All necessary data including the vendor's account number, the bank
account number, the special G/L indicator, amount, and due date are
entered.

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Accounts Payable

Accounting>Financial Accounting>Accounts Payable> Document

Entry>Down Payment

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Accounts Payable

The down payment can be cleared against the paid invoice in 2 ways:
Manually using F-54 - transfers down payment to the payables account
and takes account of this transfer when posting the payment
Automatically using the payment run (F110), matching down payment
with the invoice when the outgoing payment is made
Clearing the downpayment transfers the amount from the Alternative
Reconciliation account to the Vendors reconciliation account
A document number for the cleared vendor down payment is displayed after
saving.

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Accounting>Financial Accounting>Accounts Payable> Document

Entry>Down Payment

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Accounts Payable

A report is available to display a list of open down payments of a specific

date, by special G/L reconciliation account
The special G/L Accounts indicate the general ledger account for the
corresponding alternative reconciliation account

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Accounts Payable

Accounting>Financial Accounting>Accounts Payable>Information

System>Reports for Accounts Payable Accounting>Vendors: Items

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Accounts Payable

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Accounts Payable

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Accounts Payable

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Accounts Payable

Accounts Payable Period Closing process is required to:

- Recognize all vendor liabilities
- Clear open items
- Transfer values to different modules
- Revalue open items in foreign currency

If these AP processes are not completed there is the risk that:

- Balance sheet and P&L Statements are incorrect
- Incorrect values are extracted to FPPS and HFM
- Liabilities may be understated

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Accounts Payable

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Most Units have a cut off at Period Close for invoice processing.
After this time no further invoices in the period will be process
This is normally Wednesday or Thursday of Week 4
Budgetholders should be aware of the cutover to drive some accountability
and to ensure that all their invoices are processed or accrued as necessary.
This cut off also ensures that Finance Analysts in different areas can begin
to check postings move mispostings and have earlier visibility of outstanding
accruals

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Accounts Payable

Parked documents must be reviewed at Period Close to:

Check if they can be posted
Check if they should be deleted
Check if they are still outstanding and require an accrual
To display Parked Invoices use the following transactions:
PO Invoices MIR5
Non PO Invoices FBV3

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General Ledger

GL accounts that require clearing are called open item managed accounts.
The Open Item Management check box on the GL account master record
must be selected.
For accounts that have Post Automatic only flagged in their GL account
master data the automatic clearing program is the only way to perform
clearing for these accounts.
Open items are incomplete transactions, such as an invoice for which goods
or services have not yet been received or a goods receipt that is awaiting an
invoice
In order for an open item transaction to be considered complete, the
transaction must be cleared. A transaction is considered cleared when an
offset value is posted to it, so that the resulting balance of the items is zero
Examples of posting with clearing depicted above:
A goods receipt is posted to the GRIR account. This is regarded as an
open item, because at this point the corresponding invoice has not been
received
The invoice is received and the Goods Receipt set off against it
The transaction is now cleared and the resulting balance is zero
There is an impact to performance if items are not cleared (reporting &
inability to archive data)
GRIR accounts should be cleared each Period

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Automatic Clearing is performed by a program that analyzes the individual

open items in a G/L account and finds the corresponding open items
To do this successfully, the open items must share some common data,
which is usually stored in the Assignment field
The information in this field must match exactly and the values of the items
must net to zero in order for the program to attempt to clear the items
together

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Use this procedure to automatically clear items on GRIR accounts

If matching entries are found that net to 0 the items are marked as cleared
When clearing, the program inserts a clearing document number and a
clearing date into the line items
Any quantity differences that remain on the GRIR account will need to be
posted using MR11.

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Accounts Payable

Run daily to clear customer, vendor, and G/L accounts (particularly GRIR
clearing accounts) open items
Selects all accounts described by value quantities for which there are debit
and credit postings
Clearing is only carried out if the balance in local currency is zero
The system automatically clears them and creates clearing documents
The system will not clear items that balance in another currency
If clearing needs to be performed in a currency that is different from your
local currency you may need to use transaction F13E where you can specify
the clearing currency in order to clear transactions
The date of clearing is the date specified in the clearing parameters; the
default is todays date
When the program is running, all the accounts for which clearing can be
carried out are blocked
They are released again after the completion of clearing
After clearing, a clearing document number is given
This clearing may be processed in General Accounting rather than AP

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General Ledger

There are pre-defined criteria used when doing automatic clearing:

Vendor accounts = purchasing document
G/L accounts = assignment field
If the balance, in local currency, of the items within a group are zero-valued,
the system automatically clears them and creates clearing documents
If multiple currencies exist, use transaction F13E and specify the clearing
currency in order to clear transactions.

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Accounts Payable

Accounting>Financial Accounting>General Ledger>Periodic

Processing>Automatic Clearing

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Accounts Payable

Accounting>Financial Accounting>General Ledger>Periodic

Processing>Automatic Clearing

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Accounts Payable

GRIR accounts should be reclassified for accounting closing purposes

The entries should be reclassified so that credits (goods receipts awaiting
invoice) and debits (invoices for goods not yet received) are not netting off
in the GRIR accounts.
Entries are reclassified as follows:
- Goods delivered, but not invoiced
- Goods invoiced, but not delivered
All open items in the GRIR accounts that do not balance out to zero are
adjusted

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Accounts Payable

GRIR credit balances represent items that have been goods receipted but
not yet invoiced
These should be classified as a liability on the Balance Sheet
When the GRIR reclassification transaction is run the following postings
take place in FI:
DR GRIR Adj 953078 this is a manual entry account
CR Goods not yet invoices 953081
In PCA the Profit centre from Material Master or the cost centre is used
depending on the type of PO involved

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GRIR debit balances represent items that have been invoiced but not yet
goods receipted
These should be classified as a other current assets on the Balance Sheet
When the GRIR reclassification transaction is run the following postings
take place in FI:
CR GRIR Adj 953078 this is a manual entry account
DR Goods not yet delivered 913081
In PCA the Profit centre from Material Master or the cost centre is used
depending on the type of PO involved

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This slide gives an example of the process

At period close there is a overall credit of 5000 on the GRIR account which
represent delivered but not yet invoiced. As the balances of goods receipts
(credits) and invoices (debits) do not balance they cannot be cleared
When the GRIR reclassification transaction is executed at Period Close:
10000 is debited to the GRIR adjustment account and then credited to
the goods not yet invoiced account as a liability
5000 is debited to the invoiced not yet delivered account and then
credited to the GRIR adjustment account as other current assets
These journals are automatically posted
This reclassification may be processed in General Accounting rather than
AP

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Accounts Payable

Accounting>Financial Accounting>General Ledger>Periodic

Processing>Closing>Reclassify

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Accounts Payable

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General Ledger

Before creating financial statements, Receivables and Payables must be

classified according to their type - Receivable or Payable - so they can be
displayed correctly
Adjustment postings are necessary under following circumstances to restate
a customers or vendors account balance to the proper side of the balance
sheet:
Customer accounts with credit balances - display as a payable
Vendor accounts with debit balances - display as a receivable
The system generates a list of key date-based open items per business
partner
If, at the key date, a given business partner is a customer with a credit
balance or a vendor with a debit balance, the open items are displayed in
local currency per reconciliation account and company code. In addition, the
total amount to be reclassified is displayed at the end of the list
On the basis of these amounts reclassification postings are made to the
general ledger
For every transfer posting created, a reverse posting is also created in the
session. For customer or vendor reconciliation accounts, postings are also
made to an adjustment account. For Vendors with the reconciliation account
953001 accounts 913008 (A/P to A/R Regrouping < 12 months) and 953041
(A/P Regrouping Correction Account) will be used for the reclassifying entry
The posting list displays the postings that have been entered in the batch

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Accounts Payable

input session.
This transaction will not be executed by AP but the team should be aware
that it takes place

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Accounts Payable

Accounting>Financial Accounting>Accounts Payable>Periodic

Processing>Closing>Reclassify

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Accounts Payable

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Controlling Period-End Course

Balance sheet items denominated in foreign currency need to be revalued

each period to accurately reflect economic value
Foreign currency revaluation revalues the foreign currency open items and
foreign currency account balances and:
Calculates difference between local currency value at the time of entry
and as at Period Close
Creates a posting to a revaluation adjustment account (953010); no
posting to the reconciliation
If processing is successful, a list of the items to be reevaluated is displayed
Use Foreign Currency Revaluation (F.05) for open item account valuation
and adjustment postings
F.05 is normally run on Monday of Week 1 by General Accounting
Although not run by AP it is important to know what activities takes place
against Vendors

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Controlling Period-End Course

3 postings are made in foreign currency at 3 different posting rates:

Debit posting of 1000
This posting is at 1.6 giving a local currency posting of 1600
Credit posting of 100
This posting is at 1.5 giving a local currency posting of 150
Debit posting of 2000
This posting is at 1.4 giving a local currency posting of 2800
Total balance in foreign currency is 2900 and in local currency 4250
At Period Close the valuation rate is 1.3
Using this rate the foreign currency balance is recalculated to local currency
- 2900 *1.3 = 3770
This is then compared to the total balance in local currency of 4250
This difference of 480 in local currency is then posted to an adjustment
account and the exchange rate gains or losses account

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Accounts Payable

Accounting>Financial Accounting>General Ledger>Periodic

Processing>Closing>Valuate

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Accounts Payable

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Controlling Period-End Course

Some Balance Sheet accounts are not assigned to cost objects during
postings therefore not all entries are transferred to Profit Center Accounting
PCA
AP Balance Sheet accounts (reconciliation account for example 953001)
are not transferred at the time of posting and require further processing in
PCA
AP accounts are transferred to PCA using 1KEK - PCA: Transfer AR/AP
1KEK is often run by the General Accounting Team but it is important for AP
to be aware of this process as well
Business Segment Profit center is determined by either:
Material on the AP invoice
Cost Center on the outstanding AP invoice

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Accounts Payable

Accounting>Controlling>Profit Centre Accounting>Actual

Postings>Period End Closing

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Accounts Payable

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Accounts Payable

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Accounts Payable

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Accounts Payable

The Account Balance display provides a list of the debits, credit and overall
balance for a Vendor by Period
Double clicking into any of the fields gives line item display information for
that balance
Double clicking again will take users to the Source Document
Line layouts in these lists can be set up to provide information important to
the Unit. Users can include additional fields in the layout or choose a
different layout variant.
There is also a Special G/L tab which shows the debits or credits made to
the Vendor. The downpayment items are kept separate from the standard
line time for accounting purposes.

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Accounts Payable

Accounting>Financial Accounting>Accounts Payable>Account

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Accounts Payable

One of the most widely used report is Display Vendor Line Items
This allows Users to view Vendor:
Open items unpaid items which are open as at the date indicated in the
Open at Key Date field
Cleared Items - paid items as of the date indicated in the Open at Key
Date field. Use the Clearing Date fields to indicate a date range for
viewing paid items.
All items both paid and unpaid items as of the date range indicated in
the Posting Date fields.
Allows the ability to view the following types of items against the Vendor:
Normal Items
Special GL Transactions
Noted Items
Parked Items
The report includes the following useful columns which can be used to
analyse a Vendor Account:
Status Column - Indicates whether the item is open (unpaid), cleared
(paid), or parked (not posted).
Due Date Column and symbol - Indicates if the invoice is due to be paid:
overdue (late), due, or not due
Line Item drill down - Double click on a line item to drill down to the original
SAP invoice document.

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Accounting>Financial Accounting>Accounts Payable>Account

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Accounts Payable

These reports are useful to show Purchase Order by different criteria

including:
Vendor Number
Material Number
Account Assignment such as Cost Centre or IO
Project/WBS Element
The reposts also show the remaining amount to be delivered and invoiced
against the PO

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Accounts Payable

ME2L, ME2M - Logistics>Material Management>Purchasing>Purchase

Order>List Displays
ME2K, ME2J - Logistics>Material Management>Purchasing>Purchase
Order>List Displays>By Account Assignment

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Accounts Payable

Creates a list of invoices based on entry type selection criteria including:

EDI
BAPI
ERS
Invoicing Plan
Held/Parked
The report output format uses List Viewer functions to sort, filter, total, and
export report results

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Accounts Payable

Logistics>Materials Management>Logistics Invoice

Verification>Further Processing

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Accounts Payable

There is also a BW report that shows the age of the AP open balance per
Vendor
The report is split into the following age brackets:
1-30 days
31-60 days
61-90 days
91-120 days
121+ days
The overall Vendor open balance is split between these age brackets
The report can be found by typing AP Aging in the BW search function

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Accounts Payable

Other useful reports include:

Open Item Due Date Forecast - S_ALR_87012084
Shows open items due in 8 days, in 30 days and over 30 days
Vendor Balances - S_ALR_87012082
Shows balance by reconciliation account which can be compared to
the Trial balance for reconciliation purposes
Shows movements for a period of time
Vendor Business - S_ALR_87012083
Shows Vendor, reconciliation account, Vendor Address, Purchases
by posting date
Vendor List - S_ALR_87012086
Vendor Master Data information
Invoice Numbers Allocated Twice - S_ALR_87012341
Shows any duplicate invoices posted

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Accounts Payable

Who should create and change Vendor Master data - by the central Data
Administrator CVT or Regional Master data team
The distinction between a PO and FO:
PO = specific one off purchase
FO = recurring where one factor is uncertain

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How to reclassify the GRIR accounts Reposts balances to Assets and

Liabilities
What does ERS stand for Evaluated receipt settlement

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Accounts Payable

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Accounts Payable

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