SAP Implementation Business Blueprint S2-030 – FICO Account Payable.

SAP Implementation

Business Blueprint

S2-030 – FICO Account Payable

© SAP 2007 /

This document describes the major design concepts for Accounts Payable. The account payable application component records and administers the accounting data of vendors and this also constitutes an integral part of CMC “Cargo Management Control” System.

Postings made in SAP Account Payable (A/P) are simultaneously recorded in the General Ledger (G/L) where different G/L accounts (Reconciliation Account) are updated based on the transaction involved. The system contains due date forecasts and other standard reports that we can use to monitor vendor accounts open and cleared items.

Sections: - Vendor Master Bank Master Account Payable Processing Period End Closing

Introduction

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Table of contents

Vendor Master Master record Vendor account group General Master Data Fields Payment term Payment method

Bank Master Bank Key Bank account ID Check Management Bank Sub Accounts

Account Payable Processing Vendor Invoice / Credit Memo Advance payment to Vendor Outgoing payment

Period End Closing Open item foreign currency revaluation A/P balance carry forward

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Vendor Master

Master Record

Business transactions are posted to accounts and managed using those accounts. You must create a master record for each account that you require. The master record controls how business transactions are recorded and processed by the system.

Data in vendor master records controls how transaction data is posted and processed for a vendor. The vendor master record also contains all the data you require to do business with your vendors. In OTEL, trade vendor master records have to maintained by CPAdmin in CMC system, and it will be created automatically in SAP system through an interface program. Account department is responsible for the creation of employee and non-trade vendor records. These vendor records are classified by different vendor account groups in SAP.

By storing vendor master data centrally and sharing it throughout your organization, you only need to enter it once. You can prevent inconsistencies in master data by maintaining it centrally. If one of your vendors changes their address, you only have to enter this change once.

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Vendor Master

Master Record

Information of the Vendor Master is maintained in the following data views:

General data view

Data that applies to every company code such as the vendor’s name, address and telephone data.

Company code data view

Data that is specific to a company code such as the reconciliation account number, payment method and payment terms.

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Vendor Master

Vendor Account Group

When creating vendor master records, the account group is entered on the initial create screen. It uses to control the number range and the appearance of the company code segment of vendor account.

For the number range, it control whether the number is assigned by system automatically or manual assign. Overlap number range is not allowed. Below is the list of account group in OTEL.

Vendor Account Group Group Name

Number Range (From)

Number Range (To)

Internal/External Number assignment

TRV Trade Vendor 1 999999 External Assignment

TVI Vendor – Inter company 1 999999 External Assignment

TVR Vendor – Related Company 1 999999 External Assignment

TVA Vendor – Associated Company 1 999999 External Assignment

TVJ Vendor – Joint Venture 1 999999 External Assignment

NTV Non-Trade Vendor 3000000 3999999 Internal Assignment

EMP Employee 8000000 8999999 Internal Assignment

OTV One-time Vendor 9000000 9000000 Internal Assignment

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In the General Data view of the vendor master, the following major master data information are being highlighted.

Trading Partner Trading partner field (i.e. affiliate company code) is a mandatory entry field for inter-company customer account. When you post to this vendor account, the company ID is transferred to the line item.

Customer account For the business partner who belong to both your customer and vendor, the vendor number is used by the payment and dunning programs for clearing open items. For line item display, link to the vendor line items is established using this number.

Clearing with customer Interlink between vendor and customer and offset payment will be used

Vendor Master

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In the Company Code Specific, the following major master data information are being highlighted.

Reconciliation AccountThe reconciliation account in G/L accounting is the account which is updated parallel to the sub-ledger account for normal postings.

Tax Number / Business Registration NumberTo store Business Registration (BR) number of vendors.

Previous Vendor Account NumberIf you renumber customers and/or vendors when implementing the FI System, you can store the previous master record number in this field.

Vendor Master

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Vendor Master

Payment Term

Key for defining payment terms composed of cash discount % and payment periods.

In SAP, payment terms are used to define baseline date for due date calculation.

Payment Terms Description

N000 Due Immediately

N015 Net 15 days

N030 Net 30 days

N045 Net 45 days

N060 Net 60 days

A015 15 days after monthly statement





C015 15 days after job confirmation





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Vendor Master

Payment Method

The payment method will be used for payment program to determine the different kind of payment. The payment method can be specify in the vendor master or document item, if you do specify a particular payment method in the item to be paid, this specification has priority over the specifications in the master record.

Payment Method Code Description

C Computer Printed Cheque

U Manual Cheque

A Autopay

D Bank Draft

T Telegraphic transfer

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(1) Bank Key(2) House Bank and Account ID

You have to enter bank master data for every bank used in the system (such as house banks and banks of customers and vendors.

Bank Master

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Bank Master

Bank Key

List of bank key which to be defined in OTEL system: (sample)Bank Name (short key) Bank Country Bank Key

BOC BJS BKCHCNBJ110CCB BJS PCBCCNBJBJXICBC CAN To be confirmedBOC CAN BKCHCNBJ400ICBC CAN ICBKCNBJGDG

CNCB DLC 　　 To be confirmedBOC DLC BKCHCNBJ810

HANGS HKG 　　 To be confirmedHSBC HKG HSBCHKHHHKHBOC NGB BKCHCNBJ92ABOC SHA BKCHCNBJ300CEB SHA EVERCNBJSH1CCB SHA PCBCCNBJSHYGDB SHA 　　 To be confirmedBOC SHE BKCHCNBJ82ABOC SZX 　　 To be confirmedCCB SZX PCBCCNBJSZXHXB TAO 　　 To be confirmedBOC TAO 　　 To be confirmed

CMBC TAO 　　 To be confirmedCBB TSN 　　 To be confirmedBOC TSN BKCHCNBJ200BOC XMN BKCHCNBJ73ACIB XMN FJIBCNBA260

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Bank Master

Bank Account ID

The following account ID will be defined in OTEL system: (sample)Company

CodeBank Name (short key)

Bank Country

Bank KeyAccount

IDCurrency Bank A/C No. Description

SAP G/L Account

BJS2 BOC BJS BKCHCNBJ110 US804 USD 808618959608092014BOC USD

808618959608092014

BJS2 BOC BJS BKCHCNBJ110 CN801 CNY 808618959608092001BOC RMB

808618959608092001


824318959608092001


815518959608092001

BJS2 CCB BJS PCBCCNBJBJX CN111 CNY 11001020100053003321CCB RMB

11001020100053003321

CAN1 ICBC CAN To be confirmed　 CN360 CNY 3602054301033980000ICBC RMB

3602054301033980000

CAN2 BOC CAN BKCHCNBJ400 CN850 CNY 850755454908091000BOC RMB

850755454908091000

CAN2 BOC CAN BKCHCNBJ400 US850 USD 850755454908093000BOC USD

850755454908093000

CAN2 ICBC CAN ICBKCNBJGDG CN369 CNY 3602054319200017309ICBC RMB

3602054319200017309

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Bank Master

Bank Account ID (Continued)Company


Bank Country

Bank KeyAccount


SAP G/L Account

CAN2 ICBC CAN ICBKCNBJGDG US364 USD 3602004409214008084ICBC USD

3602004409214008084

DLC1 CNCB DLC To be confirmed　 CN728 CNY 7211410182400063328CNCB RMB

7211410182400063328

DLC2 BOC DLC BKCHCNBJ810 US274 USD 27486708094014BOC USD

27486708094014

DLC2 BOC DLC BKCHCNBJ810 CN271 CNY 27486708091001BOC RMB

27486708091001

HKG1 HANGS HKG To be confirmed HK233 HKD 235542917883HANGS HKD

235542917883

HKG1 HSBC HKG HSBCHKHHHKH EU195 EUR 198200495275 HSBC EUR 198200495275

HKG1 HSBC HKG HSBCHKHHHKH SG190 SGD 198200495280 HSBC SGD 198200495280

HKG1 HSBC HKG HSBCHKHHHKH HK631 HKD 636393993001 HSBC HKD 636393993001

HKG1 HSBC HKG HSBCHKHHHKH US634 USD 6363939930274HSBC USD

6363939930274

HKG1 HSBC HKG HSBCHKHHHKH EU635 EUR 6363939930275HSBC EUR

6363939930275

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Bank Master

Bank Account ID (Continued)Company


Bank Country

Bank Key Account ID Currency Bank A/C No. DescriptionSAP G/L Account

HKG1 HSBC HKG HSBCHKHHHKH SG630 SGD 6363939930280HSBC SGD

6363939930280

HKG1 HSBC HKG HSBCHKHHHKH HK198 HKD 198201170838HSBC HKD

198201170838


198201170838


198201170838


636408338001


636408338274


636408338275


198245599001

NBG2 BOC NGB BKCHCNBJ92A CN811 CNY 810030964008091001BOC RMB

810030964008091001

NBG2 BOC NGB BKCHCNBJ92A US814 USD 810030964008095014BOC USD

810030964008095014

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Bank Master

Bank Account ID (Continued)

Company Code

Bank Name (short key)

Bank Country

Bank KeyAccount


SAP G/L Account

SHA1 BOC SHA BKCHCNBJ300 CN041 CNY0440368001079696080

91001BOC RMB

044036800107969608091001

SHA2 CEB SHA EVERCNBJSH1 CN364 CNY 36510188000005414CEB RMB

36510188000005414

SHA2 CEB SHA EVERCNBJSH1 US367 USD 36511488000004287CEB USD

36511488000004287

SHA2 CCB SHA PCBCCNBJSHY CN319 CNY3100153688805905248

9CCB RMB

31001536888059052489

SHA2 CCB SHA PCBCCNBJSHY CN313 CNY3100150700005001348

3CCB RMB

31001507000050013483

SHA3 GDB SHA To be confirmed CN160 CNY 1650125150001910 GDB RMB 1650125150001910

SHE2 BOC SHE BKCHCNBJ82A CN831 CNY 830528417008091001BOC RMB

830528417008091001

SZX1 BOC SZX To be confirmed CN476 CNY 476699801880982816BOC RMB

476699801880982816

SZX2 CCB SZX PCBCCNBJSZX US446 USD4421480030022010014

6CCB USD

44214800300220100146

SZX2 CCB SZX PCBCCNBJSZX CN448 CNY4420150420005250208

8CCB RMB

44201504200052502088

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Bank Master

Bank Account ID (Continued)

Company Code

Bank Name (short key)

Bank Country

Bank KeyAccount


SAP G/L Account

TAO2 HXB TAO To be confirmed　 CN466 CNY46712000018391000257

16HXB RMB

4671200001839100025716

TAO2 BOC TAO To be confirmed US384 USD 381001693358091014BOC USD

381001693358091014

TAO2 CMBC TAO To be confirmed CN376 CNY 3701014180001226CMBC RMB

3701014180001226

TSN1 CBB TSN To be confirmed CN200 CNY 2000033987000160CBB RMB

2000033987000160

TSN2 CBB TSN To be confirmed CN202 CNY 2000052428000182CBB RMB

2000052428000182

TSN2 BOC TSN BKCHCNBJ200 US804 USD 800113312608093014BOC USD

800113312608093014

XMN2 BOC XMN BKCHCNBJ73A CN841 CNY 840009010008091001BOC RMB

840009010008091001

XMN2 BOC XMN BKCHCNBJ73A US844 USD 840009010008093014BOC USD

840009010008093014

XMN2 CIB XMN FJIBCNBA260 CN126 CNY 129920100100143966CIB RMB

129920100100143966

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Bank Master

Check Management

Check management is used in cases where, when issuing your checks, you do not want to use the payment document number as the check number, but a different numbering method instead.

The check management functions help you to manage both pre-numbered checks and those checks assigned numbers from your own number ranges. The function includes create, change, display and void.

To use this function, OTEL has to maintain the check lots according to the company code, house bank and account ID. The check lots will be defined in the system before system go-live.

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Bank Master

Bank Sub Accounts

Using bank sub-accounts, you can reconcile the balance of the account at your bank with the balance of your corresponding G/L account.

The sub-accounts ensure that all incoming and outgoing payments are only posted to the G/L bank account when the money is actually debited from/credited to your bank account. Incoming and outgoing payments are posted to the main G/L bank account once you receive and enter the account statement from your bank.

OTEL will use TT / Cheque Number as the key for matching for clearing purpose.

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Vendor Invoice / Credit Memo from FI-AP Module

Non-trade Invoices / Credit Memo can be posted to the system by Enjoy Transaction function provided in Accounts Payable.

During the invoice entry,Dr. Expenses / Balance sheet account

Cr. Vendor During the credit memo entry,

Dr. VendorCr. Expenses /

Balance sheet account

The vendors’ invoice number must be specified in the Reference field during the invoice posting. The following document types will be used for vendor transaction in SAP.

Account Payable Processing

SAP Document Type Description

KR Vendor Invoice

KG Vendor Credit Memo

KZ Vendor Payment

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Advance Payment To Vendor

Advance payment is posted in the SAP using the Special GL Indicator. For advance payment with by cheque, the system can be able to generate the physical check.

Separate G/L Account and Special G/L Indicator “A” have to be defined for advance to supplier as shown as below. By using this special G/L indicator, the transaction will record in vendor sub-ledger as special item and post into alternative reconciliation account instead of account payable control account.

Standard Special G/L Indicator

Description Alternative Reconciliation Account

A Trade Deposit Paid 20503001

E Cash Advance to Employee 20504002

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Outgoing Payment

Automatic payment process starts with the auto-payment run on vendors invoices. System will propose the vendors transactions that due for payment and it can be edited before the payment posted by the system. No partial payment is allowed for auto-payment that is the SAP standard.

For automatic payment process, different output will be generated by the SAP system based on the payment method. For all payment, the system will generate only the payment summary while for cheques payment, the system can create the physical cheques in addition to the summary.

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Outgoing Payment (continue)

Advance payment without clearing can be captured in payment proposal as exceptional item. You can select those advance payment item for off-setting the invoice amount by de-selecting the payment block.

You can set payment block reason to the vendor open items in such a way that manual payment is prevented in addition to payment via the payment program.

List of Payment block reason:

– Unknown invoice

– Invoice verification– Requested by other Department– Others

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Outgoing Payment

The manual payment, posting with clearing concept will be used, by entering the document line items and then select the open items that are to be cleared. Once the total amount of selected open items equals the amount of entered line items, the system clears the open items by creating one or more offsetting entries. This is mainly used for the ad-hoc transaction, which processed based on transactional basis. It can be processed with or without forms being printed. The forms are the physical cheques issued for vendors.

In OTEL, both automatic payment and manual payment will be used.

No tolerance is accepted for both gain and loss on payment differences in OTEL.

If a vendor is also a customer at the same time, you can offset the open items payables and receivables against each other. As a result of credit balance, a payment is due.

The G/L account, Exchange Rate Gain / Loss - 84025001, will be used to capture the realized exchange rate differences automatically when clearing open items.

The G/L account, Bank Charges - 85001100, will be used to capture the bank charges. The system posts the charges amount you specify for a bank item when settling payment to these accounts.

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Outgoing Payment – Partial Payment

SAP provides the flexibility in accepting any partial payment in two methods, Partial Payment and Residual Payment.

Partial payment will keep the original invoice line item open until the full amount has been cleared, mean while a new line item will be created for the paid amount.

Residual payment will clear the original invoice and a new line item with the unpaid amount will be created to replace of the original.

Both methods are available in the system, the partial payment will be more appropriate to use according to the current practice in OTEL.

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Manual Payment


Prepare outgoing payment

T-code: F-58 (Payment

with/without print form)

Prepare outgoing payment

T-code: F-58 (Payment

with/without print form)

Urgent Check Or

Invoice due forpayment

Post payment document

Post payment document

Is it partial payment ?

Clear the open line item &

enter the partial payment amount

Clear the open line item &

enter the partial payment amount

Select and clear vendor open

line item

Select and clear vendor open

line item

Yes

No Print out physical check

Check and approve payment

document

Check and approve payment

document

Reject and require Void the Cheque?

No

Yes

EndEnd

StartStart

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Execute SAP payment run program

(T-code F110)AutomaticPayment

Transactions

Execute SAP payment run program

(T-code F110)AutomaticPayment

Transactions

Vendor Invoice due for payment

Generate Payment Proposal

Execute actual “Post” payment by authorized

person

Execute actual “Post” payment by authorized

person

Check Payment Proposal

Print out proposal log for approval

Check and review byAuthorized person

Print out physicalcheque

Automatic Payment Run Process


Generate Text file for HSBCnetGenerate Text file for HSBCnet

OROR

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Period-End Closing

Open Item Foreign Currency Revaluation

In order to create your financial statements, you have to carry out a foreign currency valuation for vendor open item in foreign currency.

All open items in foreign currency are valuated as part of the foreign currency valuation:

The individual open items of an account in foreign currency form the basis of the valuation, that is, every open item of an account in foreign currency is valuated individually.

The total difference from all the open items in an account is posted to a financial statement adjustment account. The account therefore retains its original balance.

The exchange rate profit or loss from the valuation is posted to a separate expense or revenue account for exchange rate differences as an offsetting posting.

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Period-End Closing

Open Item Foreign Currency Revaluation

Below is the account assignment of foreign currency revaluation: -

AP Reconciliation Account

Reconciliation Account DescriptionRealized

Exchange Difference

Unrealized Exchange Difference

Balance sheet Adjustment

Account

40101001 Trade Vendor - 3rd parties 84023001 62010005　 40101900

40101002 Trade Vendor - Inter Group Company 84023001 62010005 40101900

40101003 Trade Vendor - Related Company 84023001 62010005 40101900

40101004 Trade Vendor – Associates 84023001 62010005 40101900

40101005 Trade Vendor - Joint Venture 84023001 62010005 40101900

40101006 Non Trade Vendor 84023001 62010005 40101900

40101007 One Time Vendor 84023001 62010005 40101900

40101008 Employee 84023001 62010005 40101900

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Period-End Closing

A/P Balance Carried Forward

This program calculates the balance carried forward for vendors.

The balances of the previous year are carried forward to the new year. When you carry forward the balances for vendor at the end of a fiscal year, the system automatically update the balances when you post values to the previous year. The system uses an indicator to determine whether the balances have been carried forward. Once this has been done, the balance is automatically carried forward whenever a posting is made, even when a posting is made to the previous year. It is therefore not necessary to execute the balance carry forward again.

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SAP Implementation Business Blueprint S2-030 – FICO Account Payable.

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Transcript of SAP Implementation Business Blueprint S2-030 – FICO Account Payable.