Professional Documents
Culture Documents
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The system uses balance confirmations, journals, balance audit trails, and other
valuations in documenting transactions in Accounts Payable Accounting. For
deadline analyses, the system:
revalues foreign currency items
determines those vendors with debit balances
lists the calculated balance amounts by their remaining terms
Accounts Payable Accounting covers the firm's disclosure obligations under
appropriate accounting principles. It also serves as an information source for
optimizing purchases. Moreover, the system's direct link to the cash management and forecasting system is a valuable tool for liquidity planning.
Representing One-time
Transactions
For vendors you use occasionally, the system comes with one-time accounts.
This allows you to manage these vendors using a minimum of computer
space. These one-time accounts contain only the most necessary control
information (such as the reconciliation account). Address and bank data are
provided when invoices or credit memos are posted. Information specific to
the vendor is derived from the invoice or credit memo itself. Consequently, a
one-time vendor master record can be used for more than one vendor.
Vendor master records are also used to represent divisions of labor that differ from one vendor branch to the next. Accounting and incoming payment
functions can be centrally combined for vendors with several branch offices
who have autonomous selling authority.
By linking a branch account with a head office account, each posting to the
branch account is automatically posted to the head office. The branch ac-
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count number is stored in the document. This allows you to perform analyses and maintain correspondence both centrally and locally.
You can indicate an account number for an alternative payee in the vendor
record. Payments are made to the address indicated or through the bank
details for this vendor account.
Alternative Payee
Affiliated Companies
The vendor master record is the flexible, data-based way of managing business
relationships with vendors. The vendor master record's flexible design is also
well-suited for special needs (such as one-time transactions).
Structure
Each master record contains three data categories. They help you represent
various organizational structures within a given operation:
General Data:
Data that applies equally to each company code and purchasing
organization within a company.
Company Code Data:
Data that reflects the firm's specific arrangements with the vendor.
Purchasing Organization Data:
Data that varies from one company's purchasing organization to another.
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The vendor master record's format helps assure that vendor data used by the
purchasing and accounting departments are consistent and non-redundant.
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Data Entry
A copy function allows you to incorporate master record data into a new
master record. You can also copy a group of master records from one
company code to another.
You determine which fields can be subsequently changed. Authorizations,
for example, are used to prevent accidental changes to the reconciliation
account. You can always access an area you want to change (such as
payment data only). Since the system logs all changes made, you can see an
overview of the change history at any time.
Changing Data
The display feature also allows you to access only those areas that interest
you. You can go from the display to the change feature, as well as call up
another master record to display or change.
Displaying Data
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The user interface, which can be customized, allows you to process and
manage master data quickly and easily.
What function does the vendor master record serve?
The data contained in the vendor master record (linkage to the general ledger,
business partner information) forms the basis of the Accounts Payable Accounting system. Moreover, the vendor master record is the link between the
R/3 System's purchasing and accounting functions. Its special characteristics
allow you to represent particular accounting interrelationships.
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Invoices can also be scanned into the system using the ArchiveLink interface.
Invoices are forwarded to the appropriate accounting person for verification
purposes.
Besides the accounting document described above, the system also comes
with other documents, such as recurring entries and sample documents.
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Recurring Entries
The system allows you to create recurring entry documents for accounting
transactions that occur in fixed time intervals and for the same amount (such
as rent invoices). These documents have no accounting effect when created.
They are only incorporated into the accounting system when executed.
Recurring entry documents contain all information needed for posting
purposes. This information includes data that indicates the term and the
payment interval for posting generation. Appropriate posting documents are
automatically generated by the system.
Sample Documents
Sample documents are used for postings performed at different time intervals
or which are otherwise not identical from posting to posting. These documents
are used as templates during document entry. The only things that need to be
corrected are amount and date information. Other information contained in
the sample document can also be changed. You can also use an existing
accounting document as a template instead of a sample document.
Entry Aids
The system has a number of functions to help you enter invoices and credit
memos, assuring efficient document entry. These aids include:
setting default values based on previous actions, for example, from the
account master record or the user master record
maintaining data that remains constant over the course of several entry
processes
fast entry for simple invoices and credit memos
flexible search feature for accounts and cost centers
customization of processing options
The account assignment model feature allows you to enter invoices and
credit memos quickly and safely. This applies to cases where you have to
make the same extensive account assignments (such as dividing amounts
among several company codes, accounts or cost centers). Account assignment models are document entry templates and contain any number of
general ledger account items. In contrast to sample documents, general
ledger account items contained in the account assignment model need not be
complete. Data is changed, supplemented or deleted during document entry
as required. You can also establish fixed distribution ratios in account
assignment models. You only have to enter the total amount and the system
will apportion the total among the various line items contained in the model.
The system immediately checks all entries and suggests corrections if there is
an error. A built-in control feature prevents you from accidentally entering
invoices twice. The system also maintains control totals at various levels,
checking to assure that invoices are entered completely and error free.
Editing Incomplete
Documents
The system also lets you save documents at any time if the entry process is
interrupted. You may continue editing the document where you left off at a
later time.
The system provides a preliminary document entry feature you can use when
an invoice cannot be entered completely. An example of this is an invoice that
lacks an account assignment or an invoice that needs to be reviewed.
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There are a number of different scenarios that can take place before preliminary invoice entry, involving various people.
For example, a document can be temporarily entered by an accounting
person, then forwarded to the responsible party at the cost center level for
payment release. The document is returned to the accounting person for
completion. The document is then presented to the responsible party for
release of the total amount. The document is released and the posting made.
Accounting
EDI
Limits
Entry
Purchasing
ice
Invo
Account
Assignment
Authorization Paths
Release
Posting
Payment
Tracking System
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are distributed among various company codes. The entry process is the same
as that used for entering documents within a company code.
The balance need not be zero for all items entered for each company code.
However, the total balance for all items must be zero.
When the transaction is posted, the system automatically creates line items for
payables and receivables arising between company codes. It also generates a
separate document for each company code involved. Along with a document
number, all documents are assigned a joint transaction number. The number is
used to portray the overall transaction at any time.
Currencies
You can enter all documents in whatever currency you want. A local currency
is assigned to each company code. You can indicate up to two additional
currencies. These "parallel" currencies are treated and updated in the same
manner as similar local currencies.
The system stores the document amounts in the document, local, and
parallel currencies. The system converts documents from local to document
currency. It uses the exchange rate from the exchange rate table or the rate
entered by you during posting. Alternatively, the system can be set up to
allow entry of certain amounts only in the document currency, or in both the
local and document currency.
The system performs a general check on whether the document balance is zero in
both the local as well as in the document currency. Any rounding differences
that result from the currency conversion are corrected automatically.
Net Procedure
"Net posting" means that the cash discount is taken into account when the
vendor invoice is entered. The system automatically reduces the expense or
materials account by the cash discount amount. It also generates an additional
line item to eliminate the cash discount. For invoices paid using the payment
program, the system reconciles the cash discount for the invoice posted. It uses
the net procedure with the cash discount rate in effect when payment is made.
Any difference between the cash discount originally calculated and the cash
discount actually used is posted to a separate expense account.
This procedure correctly values the acquired current and fixed assets,
and/or the resulting expense. The procedure avoids cash discount amounts
that must later be reposted, for instance, to a fixed asset account.
There is no difference between the gross and net procedure as far as document
entry is concerned. Just as with invoices posted using the gross procedure, you
can make subsequent changes to the cash discount terms in the document or
payment proposal. In both cases, you enter the gross values. The system corrects
the line items and automatically creates the posting to the clearing account.
Both procedures can be employed in the system side-by-side.
Credit Memos
When due, credit memos are automatically set off through the payment
program as soon as they are posted to the system. The payment program
automatically offsets invoice-related credit memos against the respective
invoice. Where credit memos cannot be offset, the vendor can be requested
to make payment using the dunning program.
Payments
The payment program creates vendor down payments based on down
payment requests entered into the system. These requests contain all information necessary for the down payment. Requests also contain a due date
before which the down payment must be made. The down payment request is
stored as a document. The document does not update the account balances.
You can display individual requests, all requests for a given vendor or all
entered requests at any time.
Down Payments
The down payments themselves are generated automatically. At the time the
closing invoice is posted, the system indicates any down payments made.
After the incoming invoice has been posted, any down payments made are
offset against the invoice either in full or in part. The payment program
ultimately regulates the invoice amount minus any credited down payments.
Down payments are reflected in the vendor or general ledger account for
down payments made either as a gross (including sales tax) or as a net
amount (excluding sales tax). In both cases, the balance sheet correctly
reflects the net value.
Automatic payment transaction management clearly represents the greatest
advantage to SAP's Accounts Payable Accounting system. The system also
supports manual payment settlement (such as debit memo procedures by
the vendor). This process is described in the chapter entitled "Accounts
Receivable Accounting."
Payments
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Payment Program's
Control Strategy
An item due for payment is determined from the terms of payment and the
cash discount base amount stored when the invoice was entered into the
system. The SAP R/3 System distinguishes between multi-tiered payment
terms (cash discount terms). This includes up to two cash discount and one
net payment deadline. You enter payment terms either as a set deadline
period (such as a 3% discount within 14 days) or as a set date (such as by the
15th of the following month).
The system generally pays as late as possible without losing any applicable
cash discounts. It calculates the item due date, assuring that the highest cash
discount is taken. The system also allows flexible customization of a control
strategy using system settings to support your company's specific payment
transaction needs.
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Payment Methods
Bank Selection
Both the various bank details for each vendor as well as the house bank for the
company code play a role in this selection process. The payment program
determines:
the house bank appropriate for the payment
the optimal vendor bank (in the case of wire transfers)
The system determines the house bank based on a priority control. This
control takes into account the amounts deposited with the bank each time.
The house bank is chosen based on the payee's place of business (by ZIP
code) or without regard to the vendor's bank details. This feature allows you
to optimize payment flows from an interest point-of-view. Alternatively, you
can indicate the bank to be used either in the vendor master record or in the
document.
The system prints the corresponding forms or creates a disk for data
medium exchange for the last step of the payment run. It provides payment
forms used by particular banks or countries. In addition, the SAPscript (SAP
word processing) feature allows you to create new forms as needed or
modify existing forms.
For data medium exchange, the system creates a file containing all payment
information which meets the banking rules for the country in question. Data
can be transferred to a PC and saved to a disk.
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The data media management function supports the management of those data
media created during payment transactions. You can produce an overview of
the most important data for each data medium. This includes:
payment run ID
the house bank
the clearing center
the calculated amount
You can also display the documents contained in the data medium, as well
as output its contents to the screen or printer.
Check Management
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Alternative Payees
All Payments:
In this case, you should enter the alternative payee's account number in
the general data for the vendor master record.
All Payments for a Given Company Code:
The appropriate specification should be entered in the master record
data specific to the company code.
Payments for Particular Invoices:
You must enter the necessary information when entering the document.
You can also make subsequent changes to the posted document. The
system must explicitly permit the entry of an alternative payee in the
vendor master record.
The SAP system also supports payment transactions involving multiple
company codes. You can combine company codes into groups, to which a
controlling company code is assigned. All due items for the company codes
involved are processed together and a single payment made. The system
generates several documents for each payment:
Payment Transactions
Involving Multiple Company
Codes
You can also handle payment receipts automatically. The system supports
various debit memo procedures as well as bill of exchange procedures
customary in some countries (bill of exchange requests, bank notes). Although
these procedures are predominantly used in R/3 Accounts Receivable
Accounting, they can be used in R/3 Accounts Payable Accounting as well.
Where procedures are used that require collection authorization, the master
record indicates the banks for which the collection authorization applies.
Payment Receipt
Currencies
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Exchange rate differences that arise between the time of invoice receipt and
the payment disbursement can be posted automatically.
Financial Calendar
The financial calendar allows you to schedule periodically recurring jobs (such
as payment runs) in the financial accounting system. You can also assign them
to the responsible employee for timely processing. The employee will then be
notified at the prescribed time.
This function gives authorized employees an overview of the status of
payment runs. It also allows them to follow and check payment runs
performed in the past.
Automated payment transactions pay open and due payables at the optimal
time (check terms), taking into account payment conditions defined by
individual companies. The system supports payments (with or without cash
discount) using general payment procedures (such as checks, wire transfers,
bills of exchange). It also supports payment methods unique to particular
countries (forms, data medium exchange).
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Special Transactions
The posting of accounting transactions (invoices, credit memos, payments to the
vendor account) also results in simultaneous changes to the associated general
ledger account for trade accounts payable. This general ledger account is labeled
as a reconciliation account and entered in the vendor's master record.
For a number of particular accounting transactions, the system updates an
alternative general ledger account. This is the case for:
down payments made
notes payable obligations
These special transactions are noted in the R/3 System using a special
general ledger indicator. A number of special general ledger transactions can
be entered into the system. Some examples include:
down payment requests
setting off down payments
notes payable
You process special general ledger transactions either together with the
vendor's remaining items or separately. Each user can easily add special
transactions to the system.
The system has appropriate features for special accounting transactions in R/3 FI
Accounts Payable Accounting (down payments, bills of exchange, guarantees).
These features assure the balance sheet's accuracy.
How are accounting transactions represented in R/3 FI Accounts Payable
Accounting?
The system provides optimal support for entering accounting transactions
that are not processed automatically. This allows you to manage day-to-day
business both quickly and error free.
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You can display individual documents using document numbers and the
company code. The R/3 System also has easy-to-use search functions that
give you quick access to the desired documents.
You can display transactions involving multiple company codes through the
transaction number. This number is the same for all documents involved in
the transaction. An overview displays the associated documents and line
items. You can also use all document display functions at this stage.
Account Balance
The account balance shows an overview of transaction figures for each given
period, divided into debits and credits. You can easily view sales by period.
You can also view special sales for the fiscal year (down payments, bills of
exchange obligations). You can immediately branch to the items displayed
on this screen.
Line Items
You can customize the line item display the way you like or need. This
allows you to limit the extent of the items to a more manageable amount
according to certain criteria.
You can display either individual items or total summaries. For example,
you can total all items for each business area, further broken down by period
and document type. You can define any totals variants. These variants are
incorporated into the display.
You can also format the item list according to your needs. If you define
various display variants, you can alternate between them when displaying
items. You can also sort the item list by criteria you select (amount, currency,
posting date). Moreover, the system comes with search features which allow
you to display portions of the list. By using these features you can display:
all items for a posting period
all items at the indicated currency
all items above a certain amount
You can also display line items for more than one company code. This option is
particularly useful when payments are made that involve multiple company
codes. If several vendors belong to a consolidated group of companies, you can
display an overview of open items for all associated vendors. If the vendor is also
a customer, a combined display allows you to show both debit and credit items.
The following features assure that you can easily track all accounting transactions for a given vendor account:
totals
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Document Changes
The system has various features that support changes to documents already
entered. You can make changes in the following ways:
by calling up the individual document
by editing the documents associated with transactions involving
multiple transactions
by requesting a list of all documents for a given vendor and changing
selected documents from the list
by requesting a list of all documents for a given vendor and making
mass changes to particular fields (such as the "payment release" field)
These features are just as easy to use as the display features. Certain data
that has already been used to update account balance cannot be changed
later. This may include account numbers, amounts, and control records. For
systems where the financial accounting module is integrated with other
components, there will be other fields that cannot be changed. For example,
you will no longer be able to make subsequent changes to cost centers for a
document if the system also uses the cost center accounting module.
You can determine whether and under what conditions the majority of the
fields can be changed. For example, you could specify that changes may be
made to payment terms as long as no payment has been made. You could
also specify that changes can only be made to particular account assignments
if the posting period in which the document was posted is still open.
All document changes are listed and can be displayed in list form as well.
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Correspondence
The system offers various ways to analyze vendor accounts. For example,
you can generate the following correspondence types:
account statements and open-item lists in letter form
general letters
account confirmations
document extracts
interest settlements
The system allows you to automatically generate correspondence at particular
intervals or for particular occasions. All correspondence is created in the
language of your business partner.
General Letters
Individual letters allow you to enter individual text when the correspondence
is generated. This text is stored separately. The system automatically determines vendor information, such as the address. You enter individual letters
just as you would text.
The standard letter feature uses predefined text. To use it, you need only
request the standard letter for the vendor whose account you are processing.
The system automatically determines vendor information, such as the
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address. You would send a standard letter to a vendor when there has been
a change in accounting staff.
The document extract feature allows you to notify the vendor about a
specific line item (such as a credit memo). You can establish which line items
may be selected in the system.
Document Extracts
Account Confirmations
Internal Documents
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Reporting
Although you can perform many valuations on-line, you may need to
produce hard copies of certain reports- even in R/3 FI Accounts Payable
Accounting. This might be due to the quantity of the data to be analyzed.
You may also want to print out a hard copy or microfiche some reports.
The reporting capability is generally set up so that you can run all reports
on-line. You send output either to the screen or to a printer. If you send
output to a printer, you can store the lists in a temporary file and decide
whether and where the output should be physically sent later.
Vendor Analyses
The system comes with reports that document the vendors' items. For
example, you can write an open-item list for the closing date of your choice
(provided the items are still available in the system). There are also analyses
that include open-item lists that allow you to define the reporting range.
Accounts
Due to memory constraints, you are not be able to keep all items in the
system for an indefinite period of time after they have cleared. To document
all account items without having to include archived data as well, the system
stores these items separately from the documents. These records only
contain information contained in the vendor rows. In addition, these records
are sorted with cleared items at the beginning of each account. Clearing
transactions are sorted by clearance date and clearing document number so
you can always follow the clearing transaction. Those items remaining open
at the closing date are listed at the end of each account. These records
generate reconciliation totals for each account and reconciliation account.
This allows you to reconcile with other parts of the accounting system.
How is the R/3 FI reporting feature structured?
The system gives you a number of ways to analyze vendor data. These
analyses aid in both processing and managing vendor information. You can
also print out these analyses.
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