SAP Implementation
Business Blueprint
S2-030 – FICO Account Payable
© SAP 2007 / Page 2
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
© SAP 2008 / Page 3
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
© SAP 2008 / Page 4
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.
© SAP 2008 / Page 5
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.
© SAP 2008 / Page 6
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
© SAP 2008 / Page 7
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
© SAP 2008 / Page 8
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
© SAP 2008 / Page 9
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
A021 21 days after monthly statement
A030 30 days after monthly statement
A045 45 days after monthly statement
A060 60 days after monthly statement
C015 15 days after job confirmation
C021 21 days after job confirmation
C030 30 days after job confirmation
C045 45 days after job confirmation
C060 60 days after job confirmation
© SAP 2008 / Page 10
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
© SAP 2008 / Page 11
(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
© SAP 2008 / Page 12
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
© SAP 2008 / Page 13
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
BJS2 BOC BJS BKCHCNBJ110 CN821 CNY 824318959608092001BOC RMB
824318959608092001
BJS2 BOC BJS BKCHCNBJ110 CN811 CNY 815518959608092001BOC RMB
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
© SAP 2008 / Page 14
Bank Master
Bank Account ID (Continued)Company
CodeBank Name (short key)
Bank Country
Bank KeyAccount
IDCurrency Bank A/C No. Description
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
© SAP 2008 / Page 15
Bank Master
Bank Account ID (Continued)Company
CodeBank Name (short key)
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
HKG1 HSBC HKG HSBCHKHHHKH US198 USD 198201170838HSBC USD
198201170838
HKG1 HSBC HKG HSBCHKHHHKH EU198 EUR 198201170838HSBC EUR
198201170838
HKG3 HSBC HKG HSBCHKHHHKH HK631 HKD 636408338001HSBC HKD
636408338001
HKG3 HSBC HKG HSBCHKHHHKH US634 USD 636408338274HSBC USD
636408338274
HKG3 HSBC HKG HSBCHKHHHKH EU635 EUR 636408338275HSBC EUR
636408338275
HKG4 HSBC HKG HSBCHKHHHKH HK191 HKD 198245599001HSBC HKD
198245599001
NBG2 BOC NGB BKCHCNBJ92A CN811 CNY 810030964008091001BOC RMB
810030964008091001
NBG2 BOC NGB BKCHCNBJ92A US814 USD 810030964008095014BOC USD
810030964008095014
© SAP 2008 / Page 16
Bank Master
Bank Account ID (Continued)
Company Code
Bank Name (short key)
Bank Country
Bank KeyAccount
IDCurrency Bank A/C No. Description
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
© SAP 2008 / Page 17
Bank Master
Bank Account ID (Continued)
Company Code
Bank Name (short key)
Bank Country
Bank KeyAccount
IDCurrency Bank A/C No. Description
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
© SAP 2008 / Page 18
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.
© SAP 2008 / Page 19
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.
© SAP 2008 / Page 20
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
© SAP 2008 / Page 21
Account Payable Processing
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
© SAP 2008 / Page 22
Account Payable Processing
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.
© SAP 2008 / Page 23
Account Payable Processing
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
© SAP 2008 / Page 24
Account Payable Processing
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.
© SAP 2008 / Page 25
Account Payable Processing
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.
© SAP 2008 / Page 26
© SAP 2007 / Page 26
Manual Payment
Account Payable Processing
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
© SAP 2008 / Page 27
© SAP 2007 / Page 27
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
Account Payable Processing
Generate Text file for HSBCnetGenerate Text file for HSBCnet
OROR
© SAP 2008 / Page 28
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.
© SAP 2008 / Page 29
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
© SAP 2008 / Page 30
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.
Copyright 2009 SAP AG. All Rights Reserved
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.
Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.
Microsoft, Windows, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation.
IBM, DB2, DB2 Universal Database, OS/2, Parallel Sysplex, MVS/ESA, AIX, S/390, AS/400, OS/390, OS/400, iSeries, pSeries, xSeries, zSeries, z/OS, AFP, Intelligent Miner, WebSphere, Netfinity, Tivoli, and Informix are trademarks or registered trademarks of IBM Corporation in the United States and/or other countries.
Oracle is a registered trademark of Oracle Corporation.
UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.
Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc.
HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachusetts Institute of Technology.
Java is a registered trademark of Sun Microsystems, Inc.
JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape.
MaxDB is a trademark of MySQL AB, Sweden.
SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.
The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior written permission of SAP AG.
This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP® product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice.
SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement.
SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence.
The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in these materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages
© SAP 2007 / Page 31
Top Related