This document provides an overview of key functions in the accounts receivable module in SAP, including: 1) Editing options and defaults that can be set for open item processing and credit management. 2) Customer line item management and open item management, including displaying line items and balances. 3) Processing open items by clearing customers, posting with clearing, or posting incoming payments manually. 4) Handling bank returned payments and resetting cleared items. 5) Posting transactions without clearing, for transfers or other receivables.

1. Accounts Receivable Version 1.0 Unit 4: Accounts Receivable Function SAP-ERP

2. Course Agenda Topic 1: Introduction Topic 2: Customer Master Topic 3: SAP Documents Topic 4: Accounts Receivable Functions Topic 5: Financial Transactions, EFT and Lockbox

3. Unit Objectives Set editing options - user defaults and line layouts Perform account and line item management Processing open items Apply payments (Manual) Handle bank rejected payments (NSFs) After completing this unit, you will be able to...

4. Order to Cash Process Order Placed Via Phone Mail, Fax Order Processed Post Goods Issued Accounting Document AR Credit Review Delivery Creates Billing Invoice Payment Received Collections Cleared Order Released Order Blocked Credit dept. Reviews Order Refer to Credit Management Procedures

5. Key Terms Assignment Baseline Date Document Type Payment Reference Posting Keys

6. Key Terms cont’d Activate cash discount Activate items SD Payment advice

7. Editing Options & Defaults (FB00) Editing Options Open item processing line layout defaults Credit Management line layout defaults Functional open item processing defaults Parameter IDs Defaults values of fields that are often used Line layout defaults & default variants via reports Fields within the main report screen allows you to default certain line layouts and sorting defaults

8. Editing Options & Defaults (FB00)

9. Customer Line Item Management There are multiple transactions that facilitate customer account management These transactions focus on the following: Displaying line item information (using line layouts) Changing customer line items Tagging items w/ reason codes Utilizing text for messages

10. Open Item Management Multiple line layouts of customer open items Open items of an account can only be cleared with an identical offsetting amount to the account Search capabilities: Partial document search Document type search Due date search Documents by company code Document amount search

11. Display Customer Balances (FD10N) A balance for one customer balance or multiple customers across multiple company codes can be viewed for a fiscal year. Double click on the period to see the individual documents that make up the balance.

12. Display Customer Line Items (FBL5N) The line items represent: Customer invoices Credit memos All other postings made to change or correct the customer account balance Different line layouts can be utilized for account management of open items The line layout functionality provides added filtering and sorting capabilities for arranging customer data on the SAP screens

13. Display Customer Line Items (FBL5N) From the “Account” menu you can list the Customer Line Items: Open Items Cleared Items All Items You can also display the items for more than one customer account cross-company code.

14. Display Customer Line Items (FBL5N) Select Radio button to view: Open Items or Cleared Items or All Items Click to see more field selections available

15. Display Customer Line Items (FBL5N) Double click on the line item to display the document.

16. Change Customer Line Items (FB02) Line items can be changed within the customer’s open item list Mass changes to reason code, text, assignment, etc, can be done directly from the list by choosing certain items or all Different line layouts can be utilized for account management of open items Only a few fields can be changed

17. Processing Open Items Processing open items involves selecting the items to be cleared An open item can be processed via: Clear Customer (F-32) Post w.clearing (F-30) Incoming payment (F-28) EFT Lockbox

18. Processing Open Items There are three types of screen layouts for processing open items: Standard Residual Partial payment Difference posting in the payment information section requires a reason code.

19. Clear Customer Line item (F-32) Cash credit and credit memos can be used to offset deductions and or debit items Clear customer is utilized to perform manual clearing of accounts receivable items

20. This process is used to clear open items automatically in Accounts Receivable This method of clearing requires the system to find exact matches on dollar amounts & assignment fields The open items are cleared when the system locates identical offsetting amounts within the same account with the same assignment & the total of all items with same amount & assignment = 0. A batch job runs nightly for automatic clearing This process clears multiple debits and credits Automatic Clearing

21. Post with Clearing (F-30) This process can be utilized for : Payment transfers Open item transfers Bad Debt Write off Once all line items have been entered into a document, the document may be posted When posted, the system automatically updates the appropriate account balances Clear the items using processing open items

22. Post Payments Manually (F-28) Payments are processed manually via post incoming payment function: Payment is deposited into bank Payment advice is provided Payment is posted using incoming payment path U.S. notes This process is only used for wire transfers and bank adjustments in Wyeth’s favor The payment advice comes from the bank

23. Payment Application Process Apply to open items Apply partial payment Balance handled? Apply a full payment Apply payment with difference reason code specifying overpayment Refund? Payment amount Item cleared after appropriate resolution (cr. memo / write-off) Customer line item cleared Item cleared when all payments received and payment is due Payment application start Payment amount is greater than line item Payment amount is less than amount of line item No Yes Change reason code (triggers AP payment) AP payment sent via AR check run Payment equals line item amount Customer makes additional payment Deduction resolution required

24. Post Incoming Payments (F-28) Customer number GL account number could be the actual cash account or a holding account Example: selecting open items by invoice number Additional Selections helps to limit the open items presented

25. Post Incoming Payments – Partial Payment Overview of customer open items after partial payment

26. Residual payment amount Post Incoming Payments – Residual Payment Reason code Note: With residual payment, original invoice will be removed from open items list and new item for residual amount will be created

27. Manage Bank Return of Customer Payment Customer payment returned Open items on account? Transfer without Clearing F-21 and change doc type to DZ Post outgoing Payments F-31 Payment amount debited Credit dept. will pursue customer payment No Yes

28. Reset Cleared Items (FBRA) Resetting cleared line items is required when a payment has been used to clear the wrong line items on an account Resetting the cleared line items re-opens the line items and allows the payment to be applied to the correct line item Line items can be reset during the period the payment was applied Reversal and resetting correspondence can be processed while resetting cleared items

29. Post without Clearing (F-21) This process can be utilized for : Transferring open items Transferring payment items Posting other receivables to an account without any open items Once all line items have been entered into a document, the document may be posted When posted, the system automatically updates the appropriate account balances

30. Unit Recap You should now be able to: Set editing options - user defaults and line layouts Understand & research customer open items Apply credits against debits (posting on-account cash) Handle bank rejected payments (NSFs) Apply payments

31. Questions and Answers