Invoicing Participant Guide

SABRE
PROJECT
SPRING
INVOICE PROCESSING

Accounts Payable Invoicing
Page 2 of 43
Table of Contents
Using this Guide..................................................................................................................................3
Lesson 1: FI-AP Overview .....................................................................................4
Lesson 1 Objectives...........................................................................................................................4
Integration of Materials Management (MM) and Accounts Payable (AP) ......................................................6
Vendor Master Data Exercise ...................................................................................................................8
Lesson 2 Exercise 1 – Display Vendor Master Data (XK03) .....................................................................8
Lesson 3: Non-PO Invoice Processing................................................................9
Lesson 3 Objectives...........................................................................................................................9
Non-PO Invoice Process ..........................................................................................................................9
Processing Non-PO Invoices, Credit Memos and Recurring Entries ............................................................9
Lesson 3 Exercise 1 – Accounting Editing Options (FB00).....................................................................10
Lesson 3 Exercise 2 – Post Invoice Document (FB60) ..........................................................................11
Lesson 3 Exercise 3 – Store Document with Invoice (FB02) ..................................................................12
Lesson 3 Exercise 4 – View Stored Document......................................................................................13
Lesson 3 Exercise 5 – Post Invoice Document (FB60) ..........................................................................13
Lesson 3 Exercise 6 – Vendor Line Item Display (FBL1H) .....................................................................15
Lesson 3 Exercise 7 – Post a Vendor Credit Memo (FB60)....................................................................15
Lesson 3 Exercise 8 – Vendor Line Item Display...................................................................................16
Lesson 3 Exercise 9 – Display Document – FB03 ................................................................................17
Lesson 3 Exercise 10 – Create Recurring Entry – FBD1 Demo only ......................................................17
Lesson 3 Exercise 11 – Change Recurring Entries – FBD2 – Demo Only .............................................18
Lesson 3 Exercise 12 – Display Changes to Recurring Entries – FBD4 – Demo Only .............................19
Lesson 3 Exercise 13 – List Recurring Entries – F.15 – Demo only .......................................................20
Lesson 3 Exercise 14 – Create Posting Documents from Recurring Entries – F.14 – Demo only .............20
Lesson 4: PO Invoice Processing ......................................................................23
Lesson 4 Objectives.........................................................................................................................23
Logistics Invoice Verification (LIV) ...........................................................................................................23
Process for entering PO Invoices ............................................................................................................24
Lesson 4 Exercise 1 – Enter Invoice for PO (MIRO) No Variance...........................................................25
Lesson 4 Exercise 2 – Display a Vendor Invoice (MIR4) ........................................................................25
Lesson 4 Exercise 3 – PO Invoice (MIRO) with Variance .......................................................................26
Lesson 4 Exercise 4 – Enter Invoice for two POs (MIR0) ......................................................................27
Lesson 4 Exercise 5 – Enter PO Vendor Credit Memo (MIR0) ..............................................................27
Lesson 4 Exercise 6 – Cancel a Vendor Invoice (MR8M) – Demo only ...................................................28
Lesson 4 Exercise 7 – Release Blocked Invoices (MRBR) – Demo only .................................................29
Lesson 4 Exercise 8 – Display Purchase Order (ME23N) – Demo only...................................................29
Lesson 4 Exercise 9 – Display List of Purchase Orders (ME2L)- Demo only ...........................................30
Lesson 5: AP Reporting & Analysis...................................................................31
Lesson 5 Objectives.........................................................................................................................31
Reporting Terminology ...........................................................................................................................31
General Reporting Workflow ...................................................................................................................32
Report Execution ...................................................................................................................................33
Report Analysis......................................................................................................................................34
Reporting Exercises ...............................................................................................................................35
Lesson 5 Exercise 1 – Vendor Line Item Display (FBL1H) .....................................................................35
Lesson 5 Exercise 2 – Vendor Balance Display (FK10N) .......................................................................38
Lesson 5 Exercise 3 – Additional Vendor Reports .................................................................................39
Quick Reference Guides......................................................................................40
AP Report Matrix...............................................................................................................................40

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Accounts Payable (AP) Introduction
The following topics are covered in this guide:
 FI-AP Overview
 Vendor Master Data
 PO Invoice Processing
 Non-PO Invoice Processing
 Payment Processing
 AP Reporting & Analysis
After completing this course, you will be able to:
 Explain the FI-AP structure and process in SAP
 Determine vendor master data requirements
 Post PO related invoices and credit memos
 Post non-PO related invoices and credit memos
 Process automatic payments and review check processing transactions
 Evaluate and analyze vendor accounts
Prerequisites for taking this course are:
 Complete the SAP Basic Navigation course
Using this Guide
This guide is designed to provide you with:
 Information regarding the listed topics
 Exercises to practice what you learn
 Quick reference guides to assist you while doing your job in SAP
Use this guide in a classroom setting to follow along with the instructor and add notes wherever needed. You can
also use this guide in a self-paced manner to review how to perform the listed tasks learned in class.

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LESSON 1: FI-AP OVERVIEW
Lesson 1 Objectives
After completing this lesson, you will be able to:
 Describe the organizational structure of Sabre in SAP and the elements that make up the structure
 Define common SAP terms used in Accounts Payable (AP)
 Explain SAP concepts used in Finance and AP
 Explain the integration of Materials Management (MM) with AP including and master data
Organizational Structure in SAP
The organizational structure is designed to carry out business transactions necessary to provide services to
vendors, procure goods/services from vendors, perform maintenance on equipment, and perform financial
accounting postings to carryout reporting.
The Controlling Area is the Top level and is called 022
The Chart of Accounts is next level and is SUSA
The Profit Centers are the next level and are valid for all company codes
The Cost Centers are by company code
+
Controlling Area -
022
Profit Center
XXXX
Company
Code 4001
Cost Center
XXXX
Cost Center
XXXX
Company
Code XXXX
Cost Center
XXXX
Cost Center
XXXX
Company
Code XXXX
Profit Center
XXXX
Company
Code XXXX
Company
Code XXXX
Cost Center
XXXX
Chart of
Accounts &
Cost/Revenue
Elements

Page 5 of 43
Term Definition
Company Code Company Code is the highest organizational unit in Financial Accounting
that represents a business organization for which a complete self-
contained set of accounts can be drawn upon for purposes of external
and internal reporting.
Controlling Area The Controlling Area is an organizational unit within an institution
representing a reporting entity for internal cost accounting purposes.
Sabre has one (1) Controlling Area which is 022.
Plant Place where materials are produced, or goods and services are
provided. There is one plant for each company code which is the same
as the company code. (Company code 4001 and Plant 4001)
Purchasing Organization A Purchasing Organization procures materials and services, negotiates
conditions of purchase with vendors, and is responsible for such
transactions. Sabre has one Purchasing Organization.
Sales Organization Entity responsible for selling materials and services and negotiating
pricing.
Distribution Channel Channel through which saleable materials or services reach customers.
Sabre will use a common distribution channel, 00, for most contracts and
materials.
Division At Sabre, Division is used to establish responsibility for profits.
Table 1: Organizational Structure Terminology

Page 6 of 43
SAP Concepts in Financial Accounting (FI)
Several important SAP concepts are important to FI.
Master data is data objects that are fairly static, centrally located and shared across the entire sy stem.
Figure 2: Master Data Examples
The Document Principle is used throughout the system.
o Each completed transaction creates a document in SAP.
o Each document has a document type.
o Document types are used to identify and differentiate business transactions. Document types
control the posting account type (vendor, customer or G/L) and assign the document number.
o Each document type is assigned to a number range – these categorize documents, helping you
to identify the origin of the documents.
o All documents can be traced to the user ID, transaction code, and time of entry.
o All document numbers are automatically assigned by SAP.
Document
Type
Description Number Range
SA G/L document 32xxxxxxxx
WE Goods Receipt MIGO 24xxxxxxxx
KR Vendor Invoice 44xxxxxxxx
KG Vendor credit (debit memo) – non PO related 41xxxxxxxx
RE Vendor Invoice PO related (MIRO) 21xxxxxxxx
Table 2: Commonly Used Document Types & Number Ranges
Integration of MaterialsManagement (MM) and Accounts Payable (AP)
AP receives invoices for purchases of goods and services involving a purchase order (PO). AP uses a function of
MM called Logistics Invoice Verification (LIV) to validate the invoice amount against the amount of the PO and the
goods receipt (GR).
A vendor master record is required for purchase order. For purchases from a vendor with which business may not
frequently be conducted, a “one-time” vendor master can be used in place of a complete vendor master data
record.
Master Data
Financial Vendor Customer Material

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Term Definition
AP Accounts Payable
PO Purchase Order
GR Goods Receipt
IR Invoice Receipt
MM Materials Management module in SAP
Master Data Master data is data that remains unchanged over a period of time.
Master data is information that is always needed in the same way.
Account Group An account group is used to classify the type of vendor and to assign the
number series for the vendor master data account.
Vendor Master The vendor master stores business information about a vendor and
includes the data necessary for processing purchase orders, goods
receipts, vendor invoicing and vendor payments.
Payment Term The period (in days) by which the vendor expects Sabre to pay. The
payment term may include a discount.
Reconciliation Accounts Reconciliation accounts are GL balance sheet accounts set up to capture
and control postings made to sub-ledger (customer and vendor)
accounts. They are the highest level GL accounts. Postings made to the
sub-ledger accounts automatically create postings in the associated
reconciliation (GL) account so the G/L reconciliation accounts are always
in balance with the associated sub-ledger accounts. Reconciliation
accounts cannot be posted to by journal entry.
Tolerance Tolerance defines how the settlement of the differences from the original
purchase order, goods receipt, invoice and the vendor payment are to be
handled by the system.
Logistics Invoice Verification (LIV) LIV is an SAP function that matches purchasing and invoicing
documents. A “3-way match” compares the original PO to the goods
receipt (GR) and the vendor invoice. A “2-way” match compares the
original PO to the vendor invoice. In either case, matching items can be
paid immediately and items with discrepancies must be researched to
determine the cause and appropriate corrective action.
Automatic Payment Program The automatic payment program in SAP is a mechanism to schedule
payments to multiple vendors simultaneously.
Table 3: Accounts Payable Terminology

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Vendor Master Data Exercise
Lesson 2 Exercise 1 – Display Vendor Master Data (XK03)
Scenario: A vendor has had a change of address and you need to review the data in a vendor master
record to be sure the change has been made.
Transaction Code XK03
Complete the following field(s): Required Data
Vendor 1002122
Company Code 4001
Select the General and Company code
views
Answer the following questions.
What is the vendor’s name?
Preview the way the vendor’s address will
print on documents.
Is a bank set up for electronic payments for
this vendor?
What Reconciliation Account is assigned to
this vendor and what is the significance of
this account?
What Payment Terms are set for this
vendor?
Is the Check Double Invoice indicator
selected for this vendor?
What Payment Method(s) are used for this
vendor?
Return to the main menu using /N

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LESSON 3: NON-PO INVOICE PROCESSING
Lesson 3 Objectives
 Explain the process for posting non-PO invoices
 Post non-PO invoices
 Post credit memos related to non-PO invoices
 Reverse non-PO invoices
 Create recurring entry documents
Non-PO Invoice Process
At Sabre most AP invoices will be uploaded via an Excel worksheet. There are transactions to do manual entries
as well but even one entry can be done through the upload program and is the preferred method at Sabre.
Figure 3: Non-PO Invoice Process Flow
Processing Non-PO Invoices, Credit Memos and Recurring Entries
Expenses that do not require a purchase order are posted by the AP Processor. Samples of these invoices are:
 Services
 Rent
Receive
Invoice
Enter
Invoice
FB60
Post
Invoice
FB60
Research
and
Resolve
Automatic
Payment
Run
F110
Correctly
Coded?
Yes
No
Yes

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 Utilities
These invoices are posted using transaction FB60
 A vendor master must exist prior to invoice entry and all required fields must be completed. The line item
entries allow the user to specify to which account the expense should accumulate.
 On the Basic data tab there are required fields of entry. This tab contains Header information that affects
the entire entry.
 Line items must have several fields entered for balancing to occur.
 GL account must be entered.
 Cost objects such as Cost Center may be required as well based on the GL account.
 The system assumes a credit to the vendor for invoices and therefore defaults all GL line items to debit.
 The system assumes a debit to the vendor for credit memos and therefore defaults all GL line items to
credit.
 Once all required data is complete and the entry balances, the indicator light next to the Bal. field will turn
green.
 If document data is incomplete or the entries do not balance, the indicator light next to the Bal. field will be
red.
o Green light means the invoice/credit memo meets all requirements for posting (debits = credits).
o Red light means the invoice/credit memo does not meet the requirements for posting.
 Recurring entries are used to automatically execute transactions that occur on a regular periodic basis
with postings to the same accounts, for the same amounts for the same frequency. For example, Sabre
will use recurring entries in AP for some vendors who have invoices that are the same each month
 Recurring entries are processed by setting up an entry, creating a posting document and posting the
recurring entry. The process looks as follows.
Figure 4: Recurring Entry Posting Process
Post Vendor Invoices and Credit Memos Exercises
Create stored
documentsof
recurringentries
FBD1
Execute listof
storedrecurring
documentsF.15
Execute the
recurringentries
F.14
Run the batch
sessionatmonth
endSM35
Lesson 3 Exercise 1 – Accounting Editing Options (FB00)
Scenario: It is possible to set up options that are specific to you.
Transaction Code FB00

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Lesson 3 Exercise 2 – Post Invoice Document (FB60)
Scenario: An invoice has been received for services and you need to post it in the system.
Company Code
Data Sheet (This will be your Company code for all
exercises)
Vendor
Data Sheet (This will be your vendor for all exercises in
Lesson 3)
Invoice date Today’s date
Reference
3.2 XX
(XX = participant number assigned by instructor)
(This is only for training- will use vendor invoice number
after go-live)
Amount 450
G/L acct 5301103
Amount 450
When entering invoices for a vendor the Vendor Invoice Number is entered in the Reference field. To
enable look up by the vendor invoice number you need activate the Reference field.
Choose the Doc. Display tab
Put a checkmark in the Reference no. field
When looking up a vendor’s invoice you can enter it in the reference field. You must enter either a
Document number or a Reference no. but not both.
When entering payments or clearing for Vendors all items are automatically selected as available for
payment. To have the items not selected you change it to Initially Inactive.
Choose the Open items tab
Put a checkmark in the Select items initially inactive
When entering payments or clearing a vendor account, you just double click on the item you want to
process.

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Cost Center
Data Sheet (Use this Cost Center for all exercises for all
exercises in Lesson 3)
Choose simulate to view the proposed posting
Post the document and write the document
number to the right.
Document
#_____________________________________
Lesson 3 Exercise 3 – Store Document with Invoice (FB02)
Scenario: An invoice has been posted for services and you need to attach associated documentation. You
first must scan the document and then attach the scanned image. The document must be a PDF.
Document Number From exercise 3.2
Company Code Your company code
Fiscal Year
Current fiscal year
Choose enter
Choose Services for Object
Choose Create –> Store Business Document
Choose Non-PO Invoice
Use the down arrow and choose Desktop
Choose attachment by double clicking on it
You will get a message that the document was
successfully stored
Enter
Use /N to return to the main menu

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Scenario: An invoice has been received for the Telephone expenses. The expenses belong to 4 different
cost centers so you will need to enter 4 line items to post the invoice.
Company Code Your Company Code
Vendor Your Vendor
Reference
3.5 XX
Lesson 3 Exercise 4 – View Stored Document
Scenario: An invoice has been posted for services and documentation attached. View the attachment
Document Number From exercise 3.3
Company Code Data Sheet
Fiscal Year
Current fiscal year
Choose enter
Choose Services for Object
Choose Attachment list
View attachment by double clicking on it

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Amount $1600.00
G/L acct 7120140
Amount $400.00
Cost Center Your Cost Center
Using the same G/L account enter 3 more
line items for 3 different Cost Centers for
the same amount. Look up Cost Centers
to use
$400.00
Post the document and write the document
Document
#_____________________________________

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Lesson 3 Exercise 6 – Vendor Line Item Display (FBL1H)
Scenario: After posting an entry, verify the effect on the vendor’s account using the Vendor Line Item
Display report.
In this exercise you will run the Vendor Line Item Display to review posted items.
Transaction Code FBL1H
Vendor Your vendor
Open items Selected
Execute the report.
What is the vendor’s outstanding balance?
Highlight row by clicking on the box to the
left
Choose Call Line Item Report
Do you see your document in the list?
Double-click on your document.
How many days until payment is due for the
invoice you posted?
Go back to previous screen
Leave the report open for future use.
Lesson 3 Exercise 7 – Post a Vendor Credit Memo (FB60)
Scenario: The person who requested the purchase for the invoice you just posted has negotiated a discount
of by 10% for the items they bought. A credit memo needs to be issued to reflect the adjustment to the
vendor’s account.
Transactn Choose Credit Memo

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Lesson 3 Exercise 7 – Post a Vendor Credit Memo (FB60)
Vendor Your vendor
Reference
3.7 XX
Amount $45.00
G/L acct 7120140
Amount $45.00
Simulate the entries.
Save the document as completed and write
the document number to the right.
Document
#_____________________________________
Lesson 3 Exercise 8 – Vendor Line Item Display
Scenario: You want to make sure the credit memo processed correctly.
In this exercise you will return to the session containing the Vendor Line Item Display and refresh the data to
review open items.
Select Menu  List  Refresh
Do you see your credit memo in the list?

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Lesson 3 Exercise 9 – Display Document – FB03
Scenario: You want to verify that you posted all the invoices you received for a day. You enter selection
criteria for one day and then when you get the list you enable the reference field in the displayed list to
match the Reference field to the vendor invoices.
Choose Document list
Posting date Today’s date
Choose Own documents only
Execute
Press enter to bypass warning message if
one occurs
Choose Layout
Find Reference in the Column Set on the
right and highlight it
Using the arrow to move Reference to the
list of Displayed Columns on the left
Click on Save layout
Click the green checkmark to return to the
list of entries
Check the list to be sure all your documents
from today are listed
Lesson 3 Exercise 10 – Create Recurring Entry – FBD1 Demo only
Scenario: You have entries that are the same each month so you create a template for these entries.
Transaction Code FBD1

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Lesson 3 Exercise 10 – Create Recurring Entry – FBD1 Demo only
First run on Today’s date
Last run on Yesterday’s date plus one year
Interval in months 1
Document Type KR
Reference
3.10 XX
PstKy 31 (Vendor invoice)
Account (vendor) Your Vendor
Enter
Amount 3000
PstKy 40 (Debit)
Account 7120140
Enter
Amount 3000
Save your entry and record the number to
the right
Document
#_____________________________________
Return to main menu using /N
Lesson 3 Exercise 11 – Change Recurring Entries – FBD2 – Demo Only
Scenario: You entered the wrong date for the recurring entry and need to change it.

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Lesson 3 Exercise 11 – Change Recurring Entries – FBD2 – Demo Only
Document Number 9300000001
Fiscal Year Current
Enter
Goto  Recurring Entry Data
Last run on Add one year to the date
Save your changes and return to main
menu
Lesson 3 Exercise 12 – Display Changes to Recurring Entries – FBD4 –
Demo Only
Scenario: You want to review changes made to a recurring entry.
Company Code 4001
Document Number 9300000001
Fiscal Year Current
Enter
Double click on Changed On
What date was it changed?
Enter
Return to the previous screen
Double click on Last run on
What change was made?
Old is what is was changed from and New
is what it was changed to.

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Lesson 3 Exercise 13 – List Recurring Entries – F.15 – Demo only
Scenario: You want to see a list of recurring entries.
Transaction Code F.15
Document Number Leave Blank
Fiscal Year Current
Enter
Review the list of recurring entries
Is the one just created on the list?
Return to main menu
Lesson 3 Exercise 14 – Create Posting Documents from Recurring Entries –
F.14 – Demo only
Scenario: As part of the monthly closing, posting documents need to be created from recurring entry
documents
Transaction Code F.14
Document Number
Your Recurring Entry document number
(If you leave blank you will process everybody’s)
Fiscal Year Current fiscal year
Settlement Period 1st
day of month to last day of month
Choose execute

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Lesson 3 Exercise 14 – Create Posting Documents from Recurring Entries –
F.14 – Demo only
You will get a message Session SAPF120 was created
Enter /NSM35 in the command field
Highlight your job by clicking to the left of it
Choose Process
Highlight Background and click on process
You will get a message that job has been
transferred to background processing
One job has been transferred to background
processing
View own documents in FB03
See exercise 3.9 for steps
Write down the document number
Lesson 3 Exercise 15 – Reverse Document Posting (FB08)
Scenario: You realize the entry was entered incorrectly and you need to reverse it
Document Number Your document number posted in Exercise 3.2
Reversal Reason 01
Display the document prior to reversal.
Post the reversal and write the document
Document #: _________________________--
Display the document using FB03.
Choose Display Document Header
What is listed as an associated document
(Reverse doc, for field)?
Review the Header of the original document.

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Lesson 3 Exercise 15 – Reverse Document Posting (FB08)
What is listed as the associated document
(Reversed by field)?
Return to the main menu
Lesson 3 Exercise 16 – Reverse Intercompany Document (FBU8) – Demo Only
Scenario: You posted a document in error and need to reverse it
Transaction Code FBU8
Cross-cc Doc Number 3200000000402216
Fiscal Year Current
Reversal Reason. 01
Click enter
Documents for both company codes will be
listed
You will get a message Intercompany transaction can be reversed
Place a checkmark in the box to the left of each
document
Post
You will get a document number for each
Company Code
You will get a message Intercompany transaction completely reversed

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LESSON 4: PO INVOICE PROCESSING
Lesson 4 Objectives
 Explain Logistics Invoice Verification (LIV) for PO invoice processing
 Process PO invoices using the 3-way match
 Reverse PO invoices
 Review the GR/IR account
Logistics Invoice Verification (LIV)
Invoices are verified against the purchase order and goods receipts to create a 3-way match.
LIV functions to compare the data and provide a means to post and pay the invoice when all data matches or post
the invoice and block it from being paid if data does not match.
 Entering the PO number on the invoice screen automatically retrieves:
o Vendor
o All open GR items for the PO
 Variance tolerance is set up when items do not match to facilitate posting if meeting the criteria.
 If goods are not received the Accounts Payable processor will inform purchasing and hold the invoice
pending resolution.
Variance Tolerance
Tolerance settings in the system dictate when an invoice that does not match the PO/GR can be posted and paid.
The only valid situation that does not automatically block the invoice for payment is when the IR quantity equals
the GR quantity (zero tolerance). Price Variance – The system checks price per item and overall invoice amount.
o If the price per item or the total invoice is less than the price tolerance of the Vendor PO invoice
will posted as “free for payment” status.
o If the price per item or the total invoice meets or exceeds the price tolerance the Vendor PO
invoice will post with a “blocked for payment” status. Contact Purchasing for resolution
 Quantity Variance - 0 and 0.00% tolerances
o If IR quantity is less than GR quantity, then the invoice will be posted as “free for payment” status.
o If IR quantity is greater than GR quantity, the Accounts Payable processor will notify purchasing
of the discrepancy.

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Process for entering PO Invoices
The process for entering an invoice related to a PO is as follows:
1. The AP Processor receives an invoice and enters the data into SAP using transaction code MIRO. Data
from the PO is automatically added to the MIRO screen.
2. The AP Processor compares the invoice to the data from the PO/GR and determines if there is a match:
a. If GR is complete and all values match, the invoice is posted as “free for payment”.
b. If GR is complete but values do not match, the invoice is posted and automatically “blocked for
payment” (information message is displayed at the bottom of the screen). The AP Processor
notifies Purchasing of the blocked invoice. Purchasing reviews blocked invoice documents using
transaction code MRBR.
c. If GR is not complete the AP Processor contacts the requisitioner to clarify the status and rectify
the situation.
Figure 5: FI-AP PO Invoices Process Flow
Receive
Invoice
Automatic
Payment
Run
F110
Enter
Invoice
MIRO
Post
Invoice
MIRO
Yes
Within
Tolerance
Limit?
Send to
Purchasing for
Resolution
Corrected PO or
GR or Invoice
Post Invoice
No

Page 25 of 43
PO Invoices
Lesson 4 Exercise 1 – Enter Invoice for PO (MIRO) No Variance
Scenario: You have received an invoice related to a PO. The invoice needs to be entered into SAP so the
vendor will be paid
Note to Instructor: A lot of the invoices are for the same vendor so the participants
may get a message “Check if Invoice was already entered” Instruct the participants
to press enter to bypass message.
Transaction Code MIRO
Reference
4.1 XX
Amount From Data Sheet
PO From Data Sheet
Enter
The GR information will default in
Post the invoice and write the document
Document #
________________________________
Lesson 4 Exercise 2 – Display a Vendor Invoice (MIR4)
Scenario: Display an invoice for a vendor
Transaction Code MIR4
Invoice Document No. From exercise 4.1
Fiscal Year Current Fiscal Year
Choose Display Document
Double click on the Purchase Order

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Lesson 4 Exercise 2 – Display a Vendor Invoice (MIR4)
Who is the vendor for your Purchase
Order?
What is the Material number
Choose the Account Assignment tab
What is the Cost Center?
What is the G/L Acct?
Return to the main menu using /N
Lesson 4 Exercise 3 – PO Invoice (MIRO) with Variance
Scenario: You have received an invoice related to a PO. The invoice is for a larger than the GR because the
goods were only partially received.
In this exercise you will enter the PO invoice and compare the invoice data to the PO data.
Transaction Code MIRO
Reference
4.3XX
Amount From Data Sheet
PO From Data Sheet
Change the amount above to match the
Goods Receipt
Simulate the entry to view how the
document will post.
Document #
________________________________

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Lesson 4 Exercise 3 – PO Invoice (MIRO) with Variance
What message do you receive?
Lesson 4 Exercise 4 – Enter Invoice for two POs (MIR0)
Scenario: You have received an invoice from a vendor for two purchase orders.
In this exercise you will post one invoice for two purchase orders
Reference
4.4XX
Amount Total of two Purchase Orders From Data Sheet
Choose Multiple Assignment
Enter Purchase order numbers From Data Sheet
Choose Adopt
Document # _______________________
Use FBL1H – Vendor Line Item Display to
view the vendor’s account and answer the
following questions.
Lesson 4 Exercise 5 – Enter PO Vendor Credit Memo (MIR0)
Scenario: You have received the credit memo from the vendor for the missing items for a PO. The credit
memo needs to be entered into SAP to reduce the open balance due to the vendor.
In this exercise you will post a PO credit memo and review the entries on the PO.

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Lesson 4 Exercise 5 – Enter PO Vendor Credit Memo (MIR0)
Transaction Choose Credit Memo
Reference
4.5XX
Amount 2500
PO From exercise 4.3
Enter
Post the credit memo and write the
document number to the right.
Document # _______________________
Lesson 4 Exercise 6 – Cancel a Vendor Invoice (MR8M) – Demo only
Scenario: You entered and invoice against the wrong PO and need to cancel it.
Transaction Code MR8M
Invoice Document No. From exercise 4.1
Fiscal Year Current Fiscal Year
Reversal Reason 01
Choose Save to reverse
Write the document number to the right. Document # _______________________

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Lesson 4 Exercise 7 – Release Blocked Invoices (MRBR) – Demo only
Scenario: You entered and invoice against the wrong PO and need to cancel it.
Transaction Code MRBR
Release Manually Choose
Blocked Due to Variances Choose
Execute
Select Blocked invoice by clicking to the left of
the line
Choose Release
The invoice is released
Lesson 4 Exercise 8 – Display Purchase Order (ME23N) – Demo only
Scenario: Viewing the Purchase Order history for a purchase order will show whether the goods have been
received and whether the invoice has been entered
Transaction Code ME23N
Purchase Order The last purchase you processed will default
Choose other Purchase order to display a
different Purchase order
Pur. Order 4600000129
Choose the Purchase Order History tab
Have the goods been received?

Page 30 of 43
Lesson 4 Exercise 8 – Display Purchase Order (ME23N) – Demo only
Has the invoice been processed?
Has there been a credit memo applied?
Lesson 4 Exercise 9 – Display List of Purchase Orders (ME2L)- Demo only
Scenario: You want to view Purchase Orders that have not been invoiced.
Transaction Code ME2L
Vendor Your Vendor
Scope of LIst BEST (Purchase Orders)
Execute
Purchase Order 4600000000
Still to be delivered 0 (fully received)
Still to be invoiced 0 (fully invoiced)
Purchase Order 4600000001
Still to be delivered 45 (not received)
Still to be invoiced 45 (not invoiced)

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LESSON 5: AP REPORTING & ANALYSIS
Lesson 5 Objectives
 Describe report terms and types of reports
 Explain report functionality
 Execute and analyze SAP reports
Reporting Terminology
The following terms are common to reporting in SAP.
Term Definition
Possible Entries
Search
A comparison search which enables the location of database records to be found by
entering information contained in the record.
Possible Entries An SAP function used to display valid input values for a specific field.
Selection Criteria  Data used to narrow the report results.
Multiple Selections  Allows for the inclusion or exclusion of specific data or ranges of data.
Selection Variant  A set of selection criteria values that have been entered and saved.
Layout Variant  A set of report results layout characteristics that have been defined and saved.
Table 4: Reporting Terminology

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General Reporting Workflow
Figure 6: Reporting Workflow
Drill Down
Filter Line Items
Sort and Group
Sum and Subtotal
Apply Layout Variant
Use a favorite
Enter Selection Criteria
Use Dynamic Selection
Apply Screen Variants
Navigate to
Initial Screen
Set Up Initial Screen
And Execute
Work with
Output

Page 33 of 43
Report Execution
Reports in SAP are called up using either a transaction code, menu path or report tree. Selection criteria are
added to refine the report results. Different types of reports are available throughout the system.
Report Type Description
ABAP ABAP is coding the language in which SAP programming is written. These reports
provide only the requested data and very limited additional functionality.
List Display (ALV) ALV stands for ABAP List Viewer. These reports typically provide data in a spreadsheet
type layout, some of which operate similar to a spreadsheet. Controls on the results
screen permit some “customization” of the results display by allowing columns to be
added/removed, data to be filtered, totaled, subtotaled, sorted, download to a
spreadsheet and data to be “drilled” into to reveal additional information.
Custom Custom reports are developed when standard SAP reports do not provide the exact data
required to analyze the business. These reports typically mimic an existing SAP report
and will have similar functionality as the original from which it was copied.
Table 5: Reporting Types
Selection Criteria
SAP uses selection criteria to determine the information to be included in a report. Adding selection criteria helps
to refine the report results to include only the requested information. Many reports allow you to limit or expand
selections based on available fields. If no selection criteria are entered, the report will include everything available
(for the report) and may take a long time to process.
Many fields on selection screens provide the ability to search for the required data using the Possible Entries
Search function. This is handy when you do not know, or are not sure of the data to be entered.
Dynamic Selections
Dynamic selections are available on many selection screens to allow for further filtering of report results. This
function provides the ability to add more fields for selection criteria. If a field you need to report on is not on the
initial selection screen, look for dynamic selections to see if the field is listed. If the field is listed, it can easily be
added as selection criteria.
Multiple Selections
Multiple selections allow you to add individual items and ranges of items or exclude individual items or ranges of
items. Additional features are included to allow you to further define the selections. Possible Entries Searches are
also available for many fields that allow for multiple selections.
Selection Options
Selection options are operators that provide additional ways to filter a field.
Selection Variants
Selection variants allow you to save the selection criteria for future use. By saving the selections as a variant, they
can be called up any time you need to run the report using the same selections. Modifications to the selections
are permitted for all fields.

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Figure 7: Report Initial Screen
Report Analysis
Reports are analyzed using several methods. Various tools are available within report results to change the layout
to suit analysis needs. Some reports, do not offer any additional functionality.
Report Analysis Features
Feature Description
Drill-down Report Access to additional data or reports is provided through on-screen icons, buttons and by
double-clicking line items.
Filter Apply factors to limit displayed data based on available data within a column and restrict
values that do not meet the specified parameters from the display.
Sort  Rearrange data in a column in ascending or descending order.
Total  Automatically add a grand total to a numeric column.
Subtotal  Automatically subtotal a column based on the column values.
Freeze Panes  Keep the header row of the report stationary while scrolling through the
remaining data.
Optimize Columns  Automatically adjust the width of all columns to fit up to the longest data string
within the column and remove any leading spaces.
Change Layout  Add or remove columns to allow more accurate analysis.
Select Layout  Change the default layout showing the report results to another layout.
Layout Variant  Save changes to a layout for future use.

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Table 6: Report Analysis Features
Report Output
Reports can be:
 Displayed on screen
 Printed in hard copy or saved electronically to PDF
 Exported to Excel
Reporting Exercises
Scenario: You need to analyze the line items on a vendor’s account.
In this exercise you will set up selection data to run the Vendor Line Item Display report using
various selection criteria and save a selection variant. Once you run the report, you will change the
report layout and review original posting documents and other available data.
Transaction Code FBL5H
Set up the initial screen with the following
data.
Account
ALL of the vendors you have worked with in this
course using the single value Multiple Selections
option
All items Selected
Posting date This month
Type
Normal items
Layout 1SAP
Save the selections as a variant Goto  VariantsSave as Variant
Variant Name
AP01-XX
(XX = Your participant number as assigned by
instructor)
Description
AP Class Variant XX
instructor)

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Use your variant for the report Goto  VariantsGet
Double click on your variant
Execute
Highlight row by clicking on the box to the
left
Choose Call Line Item Report
Choose Layout
Add columns
Net due date
Reference
Remove column Assignment
Save the Layout
Layout
/AP01-XX
instructor)
Description
AP Class Layout XX
instructor)
Exit the report and return to selection
screen.
Select your Selection Variant and add your
Layout Variant to the selection screen and
save your Selection Variant.
Overwrite the initial settings
Return to the SAP Easy Access screen.
Get your Selection Variant and answer the
following questions.
Did all of your selections default into the
selection screen?
Can you make any changes to the
selections on the screen?

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How can you quickly reset any changes
back to the original Selection Variant?
Execute the report and answer the following
questions.
Did the layout come in with your settings?
Can you make additional changes using the
reporting tools?
How can you quickly reset any changes
back to the original Layout Variant?
Double-click any line item and describe
what you see.
Return to the report results and review the
Account master data.
Exit the report.

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Lesson 5 Exercise 2 – Vendor Balance Display (FK10N)
Scenario: You need to analyze the balance of a vendor’s account.
In this exercise you will review a vendor’s balance and display related line items using drill-down
functionality.
Transaction Code FK10N
Set up the initial screen with the following data.
Account One of the vendors you have worked with in this course
Fiscal year This year
What is the vendor’s current balance?
What is the vendor’s Debit balance?
What is the vendor’s Credit balance?
Display the line items for this vendor and apply
your Layout Variant to the results.
Exit the report.

Page 39 of 43
Lesson 5 Exercise 3 – Additional Vendor Reports
Scenario: You need to analyze a vendor’s account.
In this exercise you will run the remaining reports in the AP Report Matrix and answer questions regarding
each report.
Transaction Code Various
Set up the initial screen with the following data.
Run the Due Date Analysis for Open Items for
one of your vendors and answer the following
questions.
Describe what happens when you double-click
on each of the items listed in the Navigation
panel on the report.
Run the List of Vendor Line Items Report for
one of your vendors and answer the following
questions.
How are the results in this report different from
the Vendor Line Item Display report?
Run the remaining reports in the AP Report
Matrix and answer the following questions.
List the reports that you will use daily and how
you think you will use them.

Page 40 of 43
QUICK REFERENCE GUIDES
AP Report Matrix
Transaction Code
& Report Title
Suggested Selection
Criteria & Other
Information
Business Purpose/Report Usage
AP Reports
FB03 – Document List The Documents List can be
accessed using:
 FB02 - Change Document
 FB03 – Display Document
Use to open
the report initial screen.
Common selection criteria used:
 Company Code
 Fiscal Year
 Entered by (Will default to
username of person running
report but can be deleted
altogether or changed to a
specific SAP username)
This report is for Finance documents only to
display AP, non-PO invoices.
Posted documents are items that are posted to
the vendor and GL accounts.
This report is used to display a list of all
documents that are approved and posted.
Special features include:
 Drill down to actual posted document
 Changes to posted documents are permitted
with security authorization for limited fields such
as text and date fields
 Additional columns can be added but selection
is somewhat limited; columns can also be
removed
MIR4 – Display
Invoice Document
 Invoice Document number
 Fiscal Year
This report is for Logistics Invoice Verification
(LIV), PO-related invoices only.
This transaction is used to review the original
posting document and related FI postings for a
PO invoice. FI postings can be accessed using
the Follow-on Documents… feature.
MIR5 – Display List of
Invoice Documents
 Invoice Document number
 Fiscal Year
 User
 Company Code
 Document Date
 Posting Date
 Origin and Status indicators for
Entry Type and Invoice Status
This report is for Logistics Invoice Verification
(LIV), PO-related invoices only.
This report is used to review PO invoices based
on the type of entry and posting status. Selections
in the Origin and Status section of the initial
screen are available to control the report results.
Review a list of posted and cancelled invoices
with the ability to drill-down to the original posting
document.
After drill-down to the original posting document,
FI postings can be accessed using the Follow-on
Documents… feature.
MR11 – Maintain
GR/IR Clearing
Account
 Company Code
 Purchase Order Date
 Surplus Types selection
(Delivery and/or Invoice)
This report is used to determine items that will not
automatically clear.
These are items where:
 GR has been posted and the invoice has not
(Delivery surplus)
 Invoice has been posted but the GR has not
(Invoice surplus)
The report can be used to post clearing to GR/IR
clearing and Delivery Costs Accounts.

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S_ALR_87012077 –
Accounts Payable Info
System
Select evaluations from a report
tree by Company Code or
various other objects from
various menu items and sub-
menu items:
 Due date analysis
 Currency analysis
 Overdue items
After a selection is made, report
results are provided in a dynamic
display with drill-down
capabilities.
Due date analysis – This report is used to analyze
all due in one report. Drill-down functionality
allows analysis of individual vendor items.
Currency analysis – This report is used to analyze
payables in foreign currencies. Drill-down
functionality allows for analysis of individual
vendor items.
Overdue items – This report is used to analyze all
overdue payables to determine days in arrears.
Drill-down functionality allows for display of actual
posting document.
S_ALR_87012093 -
Vendor Business
 Vendor account
 Company Code
 Reporting periods
 Fiscal Year
This report is used to review purchases during a
specified time period as well as identify vendors
with no activity during a specified time period
(“Accounts with no purchases” selection).
Master Data Reports
S_ALR_87012086 -
Vendor List
 Vendor account
 Company Code
 Further selections narrow the
report results
This report is used to review fields on vendor
master records for accuracy and completeness.
The Further selections can be used to review only
the item(s) selected rather than reviewing all fields.
S_ALR_87012087 –
List of vendor
addresses
 Vendor account
 Output format selections
change the way report results
are displayed
This report is used to review the addresses on
vendor accounts.
S_ALR_87012089 -
Display Changes to
Vendors
 Vendor account
 Changed On
 Changed By
 Further selections can be
made to narrow the results by
master data views
This report is used to review changes made to
vendor master records.
S_ALR_87012090 -
Display/Confirm
Critical Vendor
Changes
 Vendor account
 Company Code
 Make selections based on
confirmation types
This report is used to review whether or not a
vendor master record has been confirmed or
refused. Confirmation of vendors in the list can be
completed from within the report by selecting a
vendor record and drilling-down to the Confirm
Change Vendor transaction (FK08).
Vendor Account Detail Reports
FBL1N – Vendor Line
Item Display
 Vendor account
 Company Code
 Select either Open items,
Cleared items, or Both
 Select Normal
.
This report is used to review line item postings and
original posting documents on the account. It can
be used to determine accuracy of invoicing and
payments. The report is often used to troubleshoot
customer/vendor inquiries. Results provide a list of
all line items on selected vendor accounts.
Special features include:
 Drill down to actual posting documents
 Display account master data
 Display payment information

Page 42 of 43
 Change layout to include or delete columns,
change order of columns, sort data, and filter
data
 Create layout variant of report results and enter
on initial screen in order to have report results
viewed immediately in the format of the layout
variant
S_ALR_87012078 -
Due Date Analysis for
Open Items
 Vendor account
 Company Code
 Open items at key date
This drilldown report is used to evaluate the due
dates for vendor open items.
The report is dynamic in nature, meaning that you
are able to select items in the Navigation column
and change the display to focus only on those
items.
The center portion of the report provides a
summary of the open items.
The bottom portion of the report provides a
summary of the Due, Not due and Total open
items by Daily interval.
S_ALR_87012103 -
List of Vendor Line
Items
 Vendor account
 Company Code
 Select either Open items,
Cleared items, or Both
 Select Normal
This report is used to display a list of line items on
a vendor account including the name and address
of the vendor.
The report does not have any drill-down
functionality, however fields can be
added/removed as needed.
S_ALR_87012084 -
Open Items - Vendor
Due Date Forecast
 Vendor account
 Company Code
 Select Normal and/or Noted
item type
 Column I due in
 Column II due in
This report is used to display vendor open items by
the number of days in which they are due net per
company code. This report forecasts the due dates
of open items. It does not include open items that
are overdue.
The sorted totals of all vendors selected are
aggregated and displayed on a summary by
selecting "Summary sheet only".
The system calculates the number of days in
which an item is due by subtracting its due date
from the key date. Grace days that are used in
clearing payments manually are not used in this
report.
S_ALR_87012085 -
Vendor Payment
History with OI Sorted
List
 Vendor account
 Company Code
 Fiscal Year
 Select Normal and/or Noted
item type
 Output control settings are
used to determine the data
displayed including settings
for sorting and Due Date
ranges
This report is used to determine, as accurately as
possible, the current payment status for vendors
requiring special attention.
1099 Reports

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S_P00_07000134 -
Generic Withholding
Tax Reporting - 1099
Annual Reporting
 Process Type (various US
1099 reports)
 Output Group (how the results
are output)
 Country Key
 Reporting Period
 Additional selections can be
made to further narrow the
report results
This report is used to create 1099 reports for tax
reporting purposes.
Check Processing Reports
S_P99_41000101 -
Check Register
 Paying company code
 House bank
 Account ID
This report is used to review a list of all checks in
the check register for the selected bank.
S_P99_41000099 -
Payment List
 Program run date
 Identification feature
This report is used after a Payment Proposal has
been created to review the list of items that will be
included in the Payment Run. Selection criteria
requires the date of the payment proposal and the
identification code used at the time of creation.
FCHN - Check
Register
 Paying company code
 House bank
 Account ID
This report is used to review a list of all checks in
the check register for the selected bank.

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