Sap. ap dilip sadh


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SAP Account payable overview by Dilip Sadh

Kabeer consulting, Inc
Think Tree Technologies, Inc

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Sap. ap dilip sadh

  1. 1. Outgoing Payment Processing ●Outgoing Payment Processing is the final step in the Procurement Cycle. The system employs an automated Payment Program which provides full functionality for processing Vendor payments. ●Chapter Objectives – Describe the input data needed to configure the Payment Program. – Discuss cash discount strategies. – Execute the Payment Program. Think Tree Technologies, Inc.
  2. 2. Payment Program Overview Configuration Online Parameters Master Open Items Record Payment Proposal Run Process Proposal Data Proposal Payment Run Payment Data Print Program Payment Media Check Payment Payment Bank Transfer Advice Summary Think Tree Technologies, Inc.
  3. 3. Payment Program Input Data Master Online Record Configuration Parameters Open Items • Address • Payment Program • Payment Date • Cash Discount • Account Control fields • Select Open Items • Select Accounts • Bank Details • Payment Method • Select Bank(s) • Select Company • Account Mgmt. Codes • Payment Block • Payment Method • Paymt. Transaction • Minimum Amounts • Next Payment Date • Specific Bank • Automatic Paymt. • Available Amounts • Transactions • Block Reason Think Tree Technologies, Inc.
  4. 4. Input Data Master Record Address Bank Account(s) Alternative Payee Master Record Complete? Payment Terms Payment Methods Payment Block Clear with Customer Our bank + Invoice Open Items Payment Term to Pay? Payment Block Payment Method Payment Think Tree Technologies, Inc.
  5. 5. Payment Program - Control Levels Company Codes All Company Codes Paying Company Codes Payment Methods Country Company Code Ranking Order Banks Amounts Accounts Think Tree Technologies, Inc.
  6. 6. Company Code ParametersAll Company Codes Cash Discount Strategies Think Tree Technologies, Inc.
  7. 7. Cash Discount Strategies Cash Discount will only be taken if the applicable cash discount exceeds the percentage.Maximum Cash Discount will always be taken. Due Dates are not considered. Think Tree Technologies, Inc.
  8. 8. Company Code ParametersPaying Company Codes Think Tree Technologies, Inc.
  9. 9. Payment Method in Country Think Tree Technologies, Inc.
  10. 10. Payment Method in CountryPayables •Check •Bill of Exchange •Bank of Transfer (domestic + foreign) •Postal Bank Transfer •Check / Bill of Exchange •Group Clearing (between Company Codes)Receivables •Bank Collection •Bank Direct Deposit •Request for Bill of Exchange •Bill of Exchange •Refund by Bank Transactions •Refund by Check Think Tree Technologies, Inc.
  11. 11. Payment Methods inCompany Code Think Tree Technologies, Inc.
  12. 12. Payment Methods inCompany Code - Form Data Think Tree Technologies, Inc.
  13. 13. Bank Ranking Order Think Tree Technologies, Inc.
  14. 14. Available Amounts Think Tree Technologies, Inc.
  15. 15. G/L Account Assignment forBank Accounts Company Code Name of Company 1000 Boots - R - Us . .House Payment Currency Account G/L Clear Charge BusABank Method ID Account Account Type10000 B 10000 G/L Account 000110000 C 10000 G/L Account 0002 . . . . . . . .20000 B 20000 G/L Account20000 C 20000 G/L Account20000 D 20001 G/L Account Think Tree Technologies, Inc.
  16. 16. Payment Currency Euro Payment Program Open items JPY AUD USD SEK ARS It is possible to process payments that contain an alternative payment currency (i.e., a currency other than the invoice currency) Think Tree Technologies, Inc.
  17. 17. Payment Blocking Reasons Think Tree Technologies, Inc.
  18. 18. Automatic Line ItemExample: Payment Program Think Tree Technologies, Inc.
  19. 19. Automatic Line ItemExample: Cash Discount Received Office Supplies 1 2000 Accounts Payable Fuji Bank 2 2000 2000 1 1940 2 Cash Discount Received Automatic Line Item 60 2 1. Invoice 2000 (Payment Term: 3% Cash Discount)2 2. Cash Disc. 60 3. Payment 1940 Think Tree Technologies, Inc.
  20. 20. Automatic Line ItemsExample: Cash Discount Received Cash Discount Received - SKE Chart of Accounts 1000 Process SKE Account 700210 Rules Posting Keys Account Assignment Depends on: Posting Key Debit / Credit Debit 40 Tax Code Credit 50 Think Tree Technologies, Inc.
  21. 21. Maintaining Parameters Payment Run Date 05/27/YY Identification xyz Posting Date 05/27/YY Document Entered Until 05/26/YY Company Codes Payment Next Posting Additional Method Date Log 1000 US 06/14/YY TRACE Vendors (from/to) Customers (from/to) 1 9999 1 9999 Think Tree Technologies, Inc.
  22. 22. Payment Proposal Run Payment Run Date 05/27 Identification xyz Start date 06/06 Start time HH:MM:SS Start immediately Status Proposal is released Proposal is running Payment Proposal has been created Think Tree Technologies, Inc.
  23. 23. Intermediary Banks: Solution Intermediary Vendor Bank Bank(s) Own Bank Payment Program● Companies have the option to specify not only the banks at the start and at the end of the payment cycle (House bank and the business partner bank) but also the banks via which the payment should be made in between.● The payment program can determine a predefined combination of intermediary banks for each payment Think Tree Technologies, Inc.
  24. 24. Payment Proposal Data Proposal Data Process Display Display Proposal Log List Exceptions Payment List Amounts by Business Areas List of Blocked • Due date check Accounts/Items • Select Payment Method Amounts by Countries • Payment Records Amounts by Currencies Amounts by Payment Methods Amounts by Banks Think Tree Technologies, Inc.
  25. 25. Payment Run Payment Run Date 05/27 Identification xyz Status _________________________________ Parameters have been entered. Payment proposal has been created. Schedule Payment Start date 06/06 Start time HH:MM:SS Start immediately Status _________________________________ Parameters have been entered Payment proposal has been created Payment run has been released ( Payment run is in process ) Payment run has been carried out: 1 generated, 1 completed Payments have been posted Think Tree Technologies, Inc.
  26. 26. Payment Media Payment Data Print Program Report RFFOUS_C Check Payment Payment Advice Summary Bank Transfer Think Tree Technologies, Inc.
  27. 27. Check Form Structure HEADER PAGE ADDRESS INFO Your account at vendor MAIN Text Heading Line items Total CARRYFWD Amount to carry forward CHECK/CHECKADD Voided or Valid Think Tree Technologies, Inc.
  28. 28. Outgoing Payment Program ChapterSummaryKey Terms – Outgoing Payment Program – Payment Method – Payment Block – Paying Company Code – Sending Company Code – Optimization by Bank Group – Optimization by Postal Code – Variant Think Tree Technologies, Inc.
  29. 29. Outgoing Payment Program ChapterSummaryKey Terms – Payment Currency – Intermediary Bank – Bank Chain Think Tree Technologies, Inc.
  30. 30. Appendix 1.Alternate Payment Currencies The automatic payment program can create payments for documents in any desired payment currency. Local CurrencyTransaction Currency Payment Currency Payment Amount (optional) Think Tree Technologies, Inc.
  31. 31. Appendix 1.Alternate Payment Currencies TC= BRL, LC= MXN, PC= USD Vendor 1750 BRL Vendor line item: Entering (10000 Altern pymt currency: USD MXN) Altern pymt amount : $1000 Warning/ Error: Currency translation: Payment amount differs by 2% BRL->MXN: 5.714 from calculated amount: + 1750 * 5.714 * 0.102 = $1,019.49 Table of exchange rates: M: MXN → USD = 0.102 Think Tree Technologies, Inc.
  32. 32. Appendix 1.Alternate Payment Currencies Transaction currency Local currency Payment currency EXCHANGE RATES BRL MXN USDVendor 1 750 10 000 1 000 BRL:MXN > 0.175:1 MXN:USD > 10:1invoicePayment 1 750 9 500 1 000 BRL:MXN > 0.2:1 MXN:USD > 9.5:1 MXN 8 750 Value of the open item at the current exchange rate 1750 / 0.2 MXN 1 250 exch. MXN 750 rate diff. gain underpmt loss MXN 500 GAIN Think Tree Technologies, Inc.
  33. 33. Appendix 2. Intermediary Banks and BankChains - Activities1. DEFINE SCENARIO (general, business partner specific)2. ACTIVATE SCENARIO3. DEFINE A BANK CHAIN A) General bank chain - independently of a business partner’s bank details - in IMG OR B) Partner Specific - on the application side House bank Business partner (customers and vendors) Cash management carry over Think Tree Technologies, Inc.
  34. 34. Appendix 2. Intermediary Banks and BankChains - Scenarios Scenario Description Gen. Search Rec. Search 0001 No bank chain determination 0002 Sender oriented 0003 Receiver bank oriented 0004 Receiver oriented Account no./ recipient General search: specific search: Find bank chain using key fields: Find bank chain using key fields: bank country bank country, and bank key and bank key bank account number Customizing Application Think Tree Technologies, Inc.
  35. 35. Appendix 2. Intermediary Banks and BankChains - ScenariosExample:Scenario 0002, Business partner specific search, sender bank is house bank Scenari Ranking Sender bank Recip. Bank ctry Rec. Bank Pmt.Curr. o 0002 0 0002 1Payment program run Output Currenc Bank ctry. sender Bank key sender y 1st step: 10020030 UNI DE Search with key: sender bank (bank ctry and UNI - key) Pmnt. Currency : UNI and payment currency. House Bank ctry : DE Bank chain assignment: House Bank key : (if not successful) 10020030 2nd step: Correspondence banks Vendor : Vendor 1 Search with key “payment No. Category Corr. country Corr. Bank key Corr. Bank acct. ctry: DE currency” Vendor bank:12345678 1 1 DE 40050060 86746352 bank acct. no: 87654320 Think Tree Technologies, Inc.
  36. 36. Appendix 2. Intermediary Banks and BankChains - Scenario 1 HB1 HB2 HB3Explanation: CB 1 CB 2 CB 3HB = House BankCB = Correspondence BankBPB = Business Partner Bank BPBs = Payment direction Think Tree Technologies, Inc.
  37. 37. Appendix 2. Intermediary Banks and BankChains - Scenario II HB CB 1 CB 2 CB 3Explanation:HB = House BankCB = Correspondence Bank BPB 1 BPB 2 BPB 3BPB = Business Partner Bank = Payment direction Think Tree Technologies, Inc.