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Sap ar dilip sadh


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SAP Account Payable

By Dilip Sadh

Think Tree technologies
Kabeer Consulting , Inc

Published in: Technology
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Sap ar dilip sadh

  1. 1. Sales Cycle & Documents • Sales is a component of the Sales & Distribution module that supports the sale, delivery, and billing of materials and/or services to the customers of the organization. • In keeping with the system’s Document Principle, the steps in the Sales Cycle are represented by various documents, which are produced in the Sales & Distribution and Financial Accounting modules. • Chapter Objectives – Provide an overview of how the system supports an integrated Sales Cycle and a description of the purpose and functionality of each document created in the system in support of the Sales Cycle. Think Tree Technologies, Inc.
  2. 2. 17.1Sales Cycle A/R Cash Sales Order X X (SD) Credit Check Inquiry / Quotation Receive Payment (FI) Delivery Note Credit Check (SD) Authorization to Ship Invoice Sent Goods Issue FI Billing Document Credit Check (MM) FI (SD) Inventory COGS A/R Sales Revenue X X X X Think Tree Technologies, Inc.
  3. 3. 17.2 Sales DocumentsInquiryQuotationSales OrderCredit & Debit Memo Requests Think Tree Technologies, Inc.
  4. 4. Inquiry Customer Seller ? Inquiry Think Tree Technologies, Inc.
  5. 5. Quotation Inquiry Quotation Customer Think Tree Technologies, Inc.
  6. 6. Sales Order Price Sales Order Delivery Quantity Dates Think Tree Technologies, Inc.
  7. 7. Delivery Note Delivery Note • Initiates Shipping Activities • Forms the basis for Goods Issue & Billing Think Tree Technologies, Inc.
  8. 8. Goods Issue Sales Order Stock Goods Issue Delivery Billing Quotation Due List Order Inventory COGS Updated X X Think Tree Technologies, Inc.
  9. 9. Billing Document Delivery Billing A/R Sales Revenue Note Document X X Accounting Document Invoice Customer Think Tree Technologies, Inc.
  10. 10. Incoming Payment Accts. Receivable Cash Receipt of payment Think Tree Technologies, Inc.
  11. 11. 17.3Accounts Receivable inthe Sales Cycle FI Accounts Receivable (A/R) Create Customer Display Customer Incoming Master Account Balances Payment Records Processing Credit Display / Change Dunning Management Customer Line Items Think Tree Technologies, Inc.
  12. 12. Sales Cycle A/R Cash Sales Order X X (SD) Credit Check Inquiry / Quotation Receive Payment (FI) Delivery Note Credit Check (SD) Authorization to Ship Invoice Sent Goods Issue FI Billing Document Credit Check (MM) FI (SD) Inventory COGS A/R Sales Revenue X X X X Think Tree Technologies, Inc.
  13. 13. Sales Cycle & Documents ChapterSummaryKey Terms – Sales Cycle – Sales Documents – Inquiry – Quotation – Sales Order Think Tree Technologies, Inc.
  14. 14. Sales Cycle & Documents ChapterSummaryKey Terms – Shipping Documents – Delivery Note – Goods Issue – Movement Type – Billing Document Think Tree Technologies, Inc.
  15. 15. Chapter 18Automatic Account Assignment • To ensure a real-time, integrated Sales Cycle, the system contains functionality which will automatically determine the proper General Ledger Accounts to be posted to when a Goods Issue and a Billing Document is created. • Chapter Objectives – Gain an understanding of the configuration used in automatic account assignment for Accounting Documents created in the Sales Cycle. Think Tree Technologies, Inc.
  16. 16. Material AccountAssignment Overview Goods Issue Account Assignment Area Inventory COGS X X Think Tree Technologies, Inc.
  17. 17. What is Valuation? Stock Stock Material Value Quantity Price $120 = 4 Pieces x $30 / Piece $120 4 Pcs. $30 / Pc. Think Tree Technologies, Inc.
  18. 18. Selecting the Valuation Level Valuation Level Valuation Area is a Valuation Level is Plant Company Code Think Tree Technologies, Inc.
  19. 19. Accounting Data in the MaterialMaster 1 Raw Material Valuation Class Finished Product Standard or Moving 2 Price Control Average Price Current, Previous 3 Price Month, Previous Year, Future Think Tree Technologies, Inc.
  20. 20. Valuation Grouping Code Case 1: Valuation Area = Company Code Valuation Company Chart of Grouping Code Accounts Code 0001 0001 0002 GKR 0002 0003 0003 0004 IKR Think Tree Technologies, Inc.
  21. 21. Valuation Grouping Code Case 2: Valuation Area = Plant Valuation Valuation Company Chart of Grouping Area Code Accounts Code 0001 0001 0001 0002 0002 GKR 0002 0003 0003 0004 0003 0005 0004 IKR Think Tree Technologies, Inc.
  22. 22. Linking a Material Type to a ValuationClass Account Valuation Material Type Category Class Reference FERT 0001 7900 3000 HALB 3010 HAWA 0002 3020 ROH1 0003 3030 3040 ROH2 3100 ROH3 0004 3200 Think Tree Technologies, Inc.
  23. 23. Transaction / Event(Process) Keys BSX - Inventory Posting GBB - Offsetting Entry to the Stock Posting Think Tree Technologies, Inc.
  24. 24. How Does the System Find the RelevantG/L Accounts?1 5 Chart of Valuation Accounts Class 550000 2310002 81000 140000 4Transaction Key Account Grouping (Process Key) (Account Modifier) 3 Valuation Grouping Code Think Tree Technologies, Inc.
  25. 25. Performing a Simulation of the AccountAssignment Movement Type: 231 Plant: CSPL Material: RES-A Plant CSPL Material RES-A Movement Type 231 Valuation Chart of Valuation Value Grouping Code Accounts Class String Posting Strings: Transaction Key G/L Acct - Dr. G/L Acct. - Cr. BSX 300000 300000 GBB 191100 191100 Think Tree Technologies, Inc.
  26. 26. Revenue AccountAssignment Overview Billing Document ACCOUNT ASSIGNMENT CRITERIA A/R Sales X X Think Tree Technologies, Inc.
  27. 27. Interface to Financial Accounting SD FI Billing Accounting Document Billing Accounting Document Posting Block Release Think Tree Technologies, Inc.
  28. 28. Account Assignment Criteria in the BillingDocument Billing Document Company Code Chart of Accounts Sales Organization Assigned to Customer Account Payer Master Record Assignment Group Material Account Material Master Record Assignment Group Account Key Pricing Procedure Price 100.00 ERL Discount 10.00 ERS G/L Account Account Key ERL = Revenue ERS = Sales Deduction Think Tree Technologies, Inc.
  29. 29. Revenue Account Determination Acct. Determination Billing Document Type Procedure KOFI Item 10 Sales Condition Type: KOFI Deduction Price $10 Access Sequence: KOFI Discount (10%) $1 1 Condition Tables Specific 1. Charts of Sales Account Key Customer Material Accounts Organization Acct. Group Acct. Group 2. Charts of Sales Account Key Customer Accounts Organization Acct. Group 3. Charts of Sales Account Key Material Accounts Organization Acct. Group 4. Charts of Sales Account Key Accounts Organization 5. Charts of Sales Accounts Organization Records for Condition Type KOFI Account No valid record exists General Valid record exists (search ends) Sales Deduction Think Tree Technologies, Inc.
  30. 30. Automatic Account Assignment ChapterSummaryKey Terms – Valuation Area – Valuation Class – Valuation Grouping Code – Account Category Reference – Transaction / Event Key (Process Key) – Account Modification code – Account Determination Procedure Think Tree Technologies, Inc.
  31. 31. Automatic Account Assignment ChapterSummaryKey Terms – Condition Type – Access Sequence – Condition Tables – Account Assignment Group (Customer) – Account Assignment Group (Material) – Account Key Think Tree Technologies, Inc.
  32. 32. Chapter 19Credit Management • Credit Management is the process of establishing customer credit limits, establishing credit checking policies and monitoring Customers against those criteria. It is configured in both the Financial Accounting (FI) and Sales & Distribution (SD) modules. • Chapter Objectives – Provide an understanding of how credit limits are set and maintained for customers. – Provide an understanding of the hierarchical relationships between Credit Control Area, Company Code, and Customer. – Identify and understand the functionality of monitoring credit limits for Customers using Automated Credit Checking in FI and SD. Think Tree Technologies, Inc.
  33. 33. Credit Management Used to Set and Control Credit Limits for Customers Customer Customer Sales Rep. Sales Order Check Customer • Accept Order Credit • Accept Order / Credit Check Block Delivery Limits Customer • Refuse Order Credit Information Think Tree Technologies, Inc.
  34. 34. Credit Control Area Credit Company Client Control Customer Area Code Client Example: PepsiCo. Credit Control Area Credit Control Area CCAA CCBB Company Code Company Code Company Code 123 456 999 Customer A Customer B Customer A Customer C Customer A Think Tree Technologies, Inc.
  35. 35. 19.1Defining a Credit Control Area Step 1: Define a Credit Control Area Think Tree Technologies, Inc.
  36. 36. 19.1Defining a Credit Control Area Step 2: Assign Company Codes to the Credit Control Area Think Tree Technologies, Inc.
  37. 37. 19.2Assigning Credit LimitsPer Customer 2 levels of credit limit: • Globally across all Credit Control Areas • Per Credit Control AreaExample:Customer A Global Limit: $2,000,000.00 Credit Control Area Limit: $500,000.00 Client PepsiCo. CCAA < = $ 500,000.00 Credit Control Area Credit Control Area CCCH < = $ 500,000.00 CCAA CCCH Company Code Company Code CCAA + 123 999 CCCH < = $ 2,000,000.00 Customer A Customer A Think Tree Technologies, Inc.
  38. 38. Maintaining Credit LimitsPer Customer Total limit already assigned across all Credit Control Areas Highest limit already assigned for an individual Credit Control Area Maximum sum amount Maximum amount that can be assigned that can be assigned across all Credit per Credit Control Area Control Areas Think Tree Technologies, Inc.
  39. 39. Monitoring Credit Limitsfor Customer Special G/L Receivables Transactions such from sales as down payment Open Sales Orders, Deliveries and Billing Docs. Total receivables, Special G/L Trans. and outstanding Postings: Increase these amounts order value Clearings: Decrease these amounts Think Tree Technologies, Inc.
  42. 42. Dynamic Credit Check Static Dynamic Component Component OPEN DELIVERY DOCUMENTS + OPEN SALES DOCUMENT OPEN BILLING DOCUMENTS + WITHIN HORIZON + OPEN ITEMS (A/R) Credit Exposure Think Tree Technologies, Inc.
  44. 44. 19.5 Automated Credit CheckingConfiguration in FI Credit Control Areas (CCA) Customer Credit Management Area EURO Europe CCCS North America Customer : 6 Credit Control Area : EURO Risk Categories Risk Category : R02 RO1 High Risk Credit RO2 Medium Risk Representative Group : 001 RO3 Low Risk Credit Limit : 10,000 USD Credit Representative Groups Credit Representative 001 Europe 002 North America Part Func. Pers.No. Mail KB 012 Jones Think Tree Technologies, Inc.
  45. 45. Automated Credit Checking Configurationin SD Document Credit Groups Item Categories 01 Sales Order Active 02 Delivery TAN X 03 Goods Issue AGN Yes Sales Document Types OR D = Automated . Check . . Factors influencing credit: Credit + Risk + Document Control Category Credit Area Group Think Tree Technologies, Inc.
  46. 46. 19.6Reviewing and Releasing Credit Holds Credit Control Area CCXX Blocked SD Orders Credit Rep Group USCredit Account Order Credit Value Risk StatusCustomer A 351 1000.00 Medium Dynamic ChkCustomer X 567 200.00 High Dynamic ChkCustomer Y 595 50000.00 Low Static Chk Release the order(s) Think Tree Technologies, Inc.
  47. 47. 19.7 Risk Management Risk Management Credit Management Payment Cards Static/Dynamic + Letters of Credit Checks Export Credit Manual Checks Insurance Sales Order 101 Sold-to #6 Letter of Credit 3. System performs a credit Net value $1000 for customer 6 check against remaining $400 of the sales order. XYZ 10 500 of $600 ABC 20 5001. At sales order entry, the 2. The system determines thatsytem determines what types of letters of credit are allowed andpayment guarantees are allowed finds one for this customer valuedfor the payer and document type. at $600. Think Tree Technologies, Inc.
  48. 48. 19.8 Credit Control AreaDetermination Options First A User Exit at the Header Level Order of checks for determining Billing View of the Payer Master Record the Credit Control Area The Sales Area of the transaction Company Code of the Sales Organization Last Think Tree Technologies, Inc.
  49. 49. 19.9 Early Warning List Creates a report on customers who are likely to become critical The Early Warning List derives its information from the A/R Summary. It is necessary to run the A/R Summary on a timely basis to ensure up to date information. Management can use the results of these reports to determine a course of action on clients. Automatic actions can also be set in customizing. Think Tree Technologies, Inc.
  50. 50. 19.10 A/R Summary in distributed and non-distributed systems Report: RFCMCRCV SD FI Creating SD - Documents Report:Non distributed Distributed RFDKLI42systems: systems: Creates CHECK CHECK CHECK a) perfor- a) A/R Summary mance+ b)perfor- b) mance? Actual Data via RFC Think Tree Technologies, Inc.
  51. 51. 19.11AR Summary ● It contains all credit information for an account in compact form ● Can be used for SD credit checks both in distributed and non-distributed credit management ● Increases efficiency in non- distributed systems as repeated read of open items is avoided Preliminary settings are done here. Think Tree Technologies, Inc.
  52. 52. 19.12 AR Summary - Aging Settings A/R Summary aging settings in SDA/R Summary aging settings in A/R Think Tree Technologies, Inc.
  53. 53. Credit Management Chapter SummaryKey Terms – Credit Management – Credit Control Area – Credit Limit – Automated Credit Checking – Static Credit Checking – Dynamic Credit Checking – Risk Category Think Tree Technologies, Inc.
  54. 54. Credit Management Chapter SummaryKey Terms – Document Credit Group – Risk Management – Early Warning List – A/R Summary Think Tree Technologies, Inc.
  55. 55. Chapter 20Incoming Payment Processing • The receipt of payment from a customer is the final step in the integrated Sales Cycle. The system provides full functionality for processing customer payments, clearing open items in the Customer Account and resolving any payment differences. • Chapter Objectives – Provide an understanding of how the system processes incoming payments. – Provide an understanding of how the system processes payment differences. – Provide an understanding of Payment Advice functionality and its uses. Think Tree Technologies, Inc.
  56. 56. 20.1 Post Incoming Customer Payment Defaulted Mandatory Dates Information: Document Type Bank Account & (for payment) Amount paid Account Type (for Customer) Customer Account Think Tree Technologies, Inc.
  57. 57. Entering the Customer PaymentParameters for Open Item Selection Think Tree Technologies, Inc.
  58. 58. 20.2.Selecting Open Items to Be ClearedActivated Open ItemEntered & Assigned Amount Think Tree Technologies, Inc.
  59. 59. 20.3.Partial Payment / ResidualPaymentIf a payment amount doesn’t match the open item amount, it can be processed as a partial payment or residual payment. Partial Payment • Leaves original invoice intact (full amount) • Credits the Customer Account for the payment amount • No items are cleared Residual Payment • Clears the original invoice • Creates a new invoice for the remaining amount • The new invoice has a new Document Date and Baseline Date; although it is changeable Think Tree Technologies, Inc.
  60. 60. 20.4.Payment Advice Structure: Header Date Amount Currency Documents: 1/27/98 700 USD Doc. # Amount Cur. Item 1 123 100 USD Amount Cur. Doc. # 456 500 DEM 100 USD 123 Match 789 200 USD 999 600 USD Item 2 Amount Cur. Doc. # 627 235 SFR Usually by 600 USD 999 Document ... Number Invoices Payments Think Tree Technologies, Inc.
  61. 61. Sending and ReceivingPayment Advices Customer: Receives Goods Sends Payment Execute Payment Payment Cleared Program Advice Documents Generate Clear Seller: Receives Payment Sends Goods Think Tree Technologies, Inc.
  62. 62. Types of Payment Advices Types delivered with the system: EDI Account Bank Statement Lockbox Manual Think Tree Technologies, Inc.
  63. 63. 20.5Automatic Handling ofPayment Differences How to Handle the Difference: Write off to a G/L Expense Account Payment (Charge Off Indicator is set) Difference Reason Or Detected Code Generation of a New Item (Charge Off Indicator is not set) Think Tree Technologies, Inc.
  64. 64. 20.6 Lockbox Processing Bank: Checks Lockbox Payment Cleared File Advice Documents (Format) Database BAI: Bank Administration Institute A Payment Advice is created for each check. Think Tree Technologies, Inc.
  65. 65. Lockbox Processing Key Reports: RFEBLBT1: Generates pre-programmed test data (for internal use only) RFEBLB00: Imports data into lockbox processing RFEBLB20: BAI format processing RFEBBU00: Post account statement / check deposit listing Key Tables: T049A: Destination and origin definition (“Who”) T049B: Format definition (of EDI, BAI, etc.) (“How”) T049C: Evaluation of Autocash Tapes (creation date and time) (output - results) T049L: Link to House Bank table for Lockbox Master Think Tree Technologies, Inc.
  66. 66. 20.7.Interest Calculation ● The R/3 Interest Calculation program calculates and books interest on customer/vendor accounts in arrears resulting from items that are not yet paid or were paid too late. ● User definable correspondence for the recipient is generated specifying the details of the transaction. ● Configuration options determine timing and rates of interest. Think Tree Technologies, Inc.
  67. 67. Chapter 20 - Incoming PaymentProcessing Chapter SummaryKey Terms: – Clearing – Partial Payment – Residual Payment – Payment Advice – Reason Code – Lockbox Processing Think Tree Technologies, Inc.
  68. 68. Chapter 21Dunning •Dunning is the process of notifying customers that an unpaid obligation has become past due. •Chapter Objectives – Understand the functionality and configuration of a Dunning Procedure and how it is executed in the Dunning Program. – Understand the Organizational Structure of Dunning Levels within a given Dunning Program and how parameters can be set for each of them. – Understand how to send dunning correspondence to customers and vendors through Dunning Letters. – Run the Dunning Program. Think Tree Technologies, Inc.
  69. 69. 21.Dunning Organizational Structure related to Dunning: Client CLAA Company Code Company Code CCAA CCBB Dunning Area Dunning Area Dunning Area DA01 DA01 DA02The Dunning Area is an optional unit in the Organizational Structure usedto group Customers / Vendors for dunning. Each Dunning Area can representdifferent dunning policies or Organizational Units responsible for dunning. Think Tree Technologies, Inc.
  70. 70. 21.1Dunning Run -OverviewRun dateIdentificationStatusMaintain Parameters Parameters enteredSchedule dunning runDunning Run has finishedChange dunning noticesDunning data has been changedStart dunning printoutPrinting of dunning notices has been terminated Think Tree Technologies, Inc.
  71. 71. 21.2.Dunning Program Configuration The Dunning Procedure contains the configuration of a Dunning Program. The Dunning Procedures can be tied to Dunning Areas or to a Customer / Vendor master record. Dunning Procedure Dunning Program Configuration Execution Dunning Minimum Dunning Dunning Levels Amounts Charges Texts Basic Parameters of the Dunning Procedure Think Tree Technologies, Inc.
  72. 72. 21.2Assigning the Dunning Procedurein the Master Record •Master Record •Company Code Data •Correspondence Tab Think Tree Technologies, Inc.
  73. 73. 21.2Configuring the Dunning Procedure Frequency for running Days in arrears after which a Dunning Notice will be sent Items that are overdue less or equal to the grace period will not be dunned (works like a bonus period) Grace Period Minimum Days in Arrears # Days in Arrears 0 1 2 3 4 5 6 7 8 9 10 11 12 Think Tree Technologies, Inc.
  74. 74. 21.2.Selecting Open Items to be Dunned Grace Period: 4 Days Minimum Days in Arrears: 8 Days Items: Due Amt. Status 1) -6 1,500 Not Overdue 2) +3 350 Within Grace Period 3) +6 800 Within Min. Days in Arrears 4) +10 5,400 Overdue 10 Days Result: Items 3 and 4 will be dunned. You will dun the account for Item 3 because there is another item that is overdue more than the minimum days in arrears. If Item 4 did not exist, then item 3 would not be dunned. Think Tree Technologies, Inc.
  75. 75. 21.2. Dunning Levels Think Tree Technologies, Inc.
  76. 76. 21.2Minimum Amounts Minimum Amounts define an overdue threshold of the total Account Balance, which must be exceeded to reach a Dunning Level. • Minimum Amount Dunning Level • Minimum Percentage • Minimum Amount for InterestExample:Total Account Balance: USD 25,000,00Configuration of Dunning Level 1: Min. Amount = USD 15.00 and Min. Percentage = 5%Dunning Balance Level 1: USD 500.00Will be dunned? No, because USD 500.00 >= Min. Amount but USD 500.00 < Min. % Think Tree Technologies, Inc.
  77. 77. 21.2.Dunning Charges For each Dunning Level, it is possible to define an amount to be charged if the minimum amount for dunning is exceeded. A Dunning Charge is used to cover the postage and handling of Dunning Letters. Dunning Charge: Static amount to be charged Dunning Level Dunning Charge %: Percentage to be applied to the total of all overdue items in the Account to determine the Dunning Charge Think Tree Technologies, Inc.
  78. 78. 21.2.Dunning Texts Dunning Dunning Level Form A form is set up using SAPScript and can be shared by more than one Dunning Level. Think Tree Technologies, Inc.
  79. 79. 21.3 Parameters for the dunning run The Dunning Program examines the open items of a Customer / Vendor and, if overdue items exist, produces the appropriate notice. Dunning Date Documents Date Company Code, Range of Customer / Vendor Numbers Think Tree Technologies, Inc.
  80. 80. 21.3 Parameters for the dunning run It’s possible to create an additional log to analyze the dunning run. A range of customer and vendor accounts has to be specified Think Tree Technologies, Inc.
  81. 81. 21.4.Selecting the Dunning Level Overdue Old New Level = Item Level Old Level + 1 The Dunning Letter Think Tree Technologies, Inc.
  82. 82. 21.4. The dunning run Dunning can be started at a specific date and time or it can be started immediately. Dunning notices can be created immediately after the dunning run. If this parameter is set it is no longer possible to change the dunning proposal manually or to delete it. Think Tree Technologies, Inc.
  83. 83. 21.4The dunning run Dunning Block Reasons are used to block a Customer / Vendor or an item from being dunned. The user specifies the Dunning Block Identification and a Description. Dunning Keys are used to mark items that should not trigger a higher Dunning Level. The user specifies the Dunning Key Identification and the Maximum Level that can be triggered. Think Tree Technologies, Inc.
  84. 84. 21.4. The dunning RunDunning run can be divide in to three steps:1. The program checks which accounts shall be considered in the dunning run according to the parameters and configuration.2. The system checks which line items are overdue in the selected accounts and which dunning level should be applied.3. The system checks whether payments have to be dunned for an account and ,if so,which dunning level should be used. Think Tree Technologies, Inc.
  85. 85. 21.5. Editing the dunning proposal Dunning itemsAccounting Document AccountOverview ItemsDunning data Items Item 1Dunning dataDunning data Dunning Level Item 1 Dunn BlockAccountClerk Customer CorrespondenceDunning Area Item2Dunning Level ….Dunn Block Company code Dunning data Correspondence Think Tree Technologies, Inc.
  86. 86. 21.6. Printing dunning notices This image cannot currently be display ed. • A payment coupon may be attached to a dunning letter or account statement. • Payment coupons can also be printed in a separate spool on dedicated forms. Think Tree Technologies, Inc.
  87. 87. 21.6Cross Company Code Dunning This feature enables users to create one dunning notice that covers business partners that exist in different company codes. Likewise, data that would normally be spread over several company codes (and hence several correspondence letters) can now be grouped into one correspondence letter. Think Tree Technologies, Inc.
  88. 88. Sending Correspondence to Customers /Vendors Pre-Defined Action Trigger Correspondence Think Tree Technologies, Inc.
  89. 89. Chapter 21 - DunningChapter SummaryKey Terms: – Dunning – Dunning Area – Dunning Procedure – Grace Period – Dunning Level – Minimum Amount – Dunning Charge Think Tree Technologies, Inc.
  90. 90. Chapter 21 - DunningChapter SummaryKey Terms: – Dunning Letter – Dunning Program – Dunning Block Reason – Dunning Keys Think Tree Technologies, Inc.