Ap ar questions

Accounts Receivable and Accounts Payable

At what level are the customer and vendor codes stored in SAP?

The customer and vendor code are at the client level. That means any

company code can use the customer and vendor code by extending the

company code view.

How are Vendor Invoice payments made?

Vendor payments can be made in the following manner:

Manual payments without the use of any output medium like cheques

etc.

Automatic Payment program through cheques, Wire transfers, DME etc.

How do you configure the automatic payment program?

The following are the steps for configuring the automatic payment

program:-

Step 1 Set up the following:

Co. code for Payment transaction

Define sending and paying company code.

Tolerance days for payable

Minimum % for cash discount

Maximum cash discount

Special GL transactions to be paid


Paying company code for payment transaction

Minimum amount for outgoing payment

No exchange rate diff

Separate payment for each ref

Bill/exch payment

Form for payment advice


Payment method per country

Whether Outgoing payment

Check or bank transfer or B/E

Whether allowed for personnel payment

Required master data

Doc types

Payment medium programs

Currencies allowed


Payment method per company code for payment transactions

Set up per payment method and co. code

The minimum and maximum amount.

Whether payment per due day

Bank optimization by bank group or by postal code or no

optimization

Whether Foreign currency allowed

Customer/Vendor bank abroad allowed

Attach the payment form check

Whether payment advice required


Bank Determination for Payment Transactions

Rank the house banks as per the following

Payment method, currency and give them ranking nos

Set up house bank sub account (GL code)

Available amounts for each bank

House bank, account id, currency, available amount

Value date specification

Where do you attach the check payment form?

It is attached to the payment method per company code.

Where are Payment terms for customer master maintained?

Payment terms for customer master can be maintained at two places i.e.

in the accounting view and the sales view of the vendor master record.

Which is the payment term which actually gets defaulted when the

transaction is posted for the customer (accounting view or the sales

view)?

The payment term in the accounting view of the customer master comes

into picture if the transaction originates from the FI module. If an FI

invoice is posted (FB70) to the customer, then the payment terms is

defaulted from the accounting view of the customer master.

The payment term in the sales view of the customer master comes into

picture if the transaction originates from the SD module. A sales order is

created in the SD module. The payment terms are defaulted in the sales

order from the sales view of the customer master.

Where are Payment terms for vendor master maintained?

Payment terms for Vendor master can be maintained at two places i.e. in

the accounting view and the purchasing view.

Which is the payment term which actually gets defaulted in

transaction (accounting view or purchasing view)?

The payment term in the accounting view of the vendor master comes

into picture if the transaction originates from the FI module. If an FI

invoice is posted (FB60) to the Vendor, then the payment terms is

defaulted from the accounting view of the vendor master.

The payment term in the purchasing view of the vendor master comes

into picture if the transaction originates from the MM module. A

purchase order is created in the MM module. The payment terms are

defaulted in the purchase order from the purchasing view of the vendor

master.

Explain the entire process of Invoice verification from GR to Invoice

verification in SAP with accounting entries?

These are the following steps:

A goods receipt in SAP for a purchased material is prepared referring a

purchase order.

When the goods receipt is posted in SAP the accounting entry passed is:-

Inventory account Debit

GR/IR account credit

A GR/IR (which is Goods receipt/Invoice receipt) is a provision account

which provides for the liability for the purchase. The rates for the

valuation of the material are picked up from the purchase order.

When the invoice is booked in the system through Logistics invoice

verification the entry passed is as follows:-

GR/IR account debit

Vendor credit

How are Tolerances for Invoice verification defined?

The following are instances of tolerances that can be defined for Logistic

Invoice Verification.

c. Small Differences

d. Moving Average Price variances

e. Quantity variances

f. Price variances

Based on the client requirement, the transaction can be “Blocked” or

Posted with a “Warning” in the event of the Tolerances being exceeded.

Tolerances are nothing but the differences between invoice amount and

payment amount or differences between goods receipt amount and

invoice amount which is acceptable to the client.

Can we change the reconciliation account in the vendor master?

Yes. Reconciliation account can be changed in the vendor master

provided that the authority to change has been configured. Normally we

should not change the reconciliation account.

What is the impact on the old balance when the reconciliation

account in the vendor master is changed?

Any change you make to the reconciliation account is prospective and

not retrospective. The old items and balances do not reflect the new

account only the new transactions reflect the account.

There is an advance given by the customer which lies in a special GL

account indicator A. Will this advance amount be considered for

credit check?

It depends on the configuration setting in the special GL indicator A. If

the “Relevant to credit limit” indicator is switched on in the Special GL

indicator A the advances will be relevant for credit check, otherwise it will

not be relevant.

In payment term configuration what are the options available for

setting a default baseline date?

There are 4 options available:-

1) No default

2) Posting date

3) Document date

4) Entry date

What is generally configured in the payment term as a default for

baseline date?

Generally document date is configured in the payment term as a default

for base line date.

How do you configure a special GL indicator for Customer?

You can use an existing special GL indicator ID or create a new one.

After creating a special GL indicator id, update the chart of accounts and

the Reconciliation account. Also as a last step you need to update the

special GL code.

The special GL code should also be marked as a Reconciliation account.

Switch on the relevant for credit limit and commitment warning

indicators in the master record.

Question 1: Additional Log What is the additional log in the AP payment program andhow can it be used for troubleshooting ? A:The additional log is an important setting whenperforming a payment run. The amount of informationstored in the log can be selected

How can you link customer and vendor master records and what is the purpose of doing so ? A:On the customer master there is a field “vendor” andlikewise on the vendor master there is a field “customer”.By entering these master data numbers, a link can becreated between the AP/AR subledgers for use in thepayment program, dunning routine and the clearing of open items.For example in the payment program, if a specific businesspartner is your vendor but also your customer, linking theirmaster records together will allow the open AR invoices to be offset against the outstanding AP invoices

PAYMENT TERM:

What are terms of payments and where are they stored ? A:Payment terms are created in configuration anddetermine the payment due date for customer/vendorinvoices.They are stored on the customer/vendor master record andare pulled through onto the customer/vendor invoicepostings. The due date derived via the payment can bechanged on each individual invoice if requiredQ u e s t i o n 4 : B a s e l i n e D a t e What is meant by a “baseline date” in SAP AR and AP ? A:The baseline date is the date from which the paymentterms (specified in IMG transaction OBB) apply Usually this is the document date on the invoice but canalso be the date of entry or posting date from the ledger

ONE TIME VENDOR:

What are one-time vendors ? A:In certain industries (especially where there are a high volume of cash transactions), it is not practical to createnew master records for every vendor trading partner.One-time vendors allow for a dummy vendor code to beused on invoice entry and the information which isnormally stored in the vendor master (payment terms,address etc) , is keyed on the invoice itself

AP VENDOR GROUP:

What factors should be considered when configuring an Accounts Payable Vendor Group? A:The following are determined by the creation of a new AP vendor group (transaction OBD3)•

Whether the vendors in this group are one-time vendors – i.e. no master record is created but theaddress and payments details are entered againsteach invoice to this vendor• Field status group – which fields on the vendormaster are suppressed, optional or mandatory when creating vendors belonging to this group Additionally the vendor number ranges defined intransaction XKN1 need to be assigned to your vendoraccount groups in transaction OBAS. The decisionneeds to be made whether to assign an externalnumber range (where the user chooses the masterrecord number) or an internal number range (systemassigned)

PAYMENT RUN:

Name the standard stages of the SAP Payment Run. A:The following steps are usually performed during thepayment run• Entering of parameters (company codes, paymentmethods, vendor accounts etc)• Proposal Scheduling – the system proposes list of invoices to be paid• Payment booking – the booking of the actualpayments into the ledger• Printing of payment forms (cheques etc) Variations on the above may be found in different SAPcustomers, but the interviewer will be looking for the basissteps above

PAYMENT METOHDS:

What is the purpose of payment methods and where arethey stored? A:Generally payment methods are one digitalphanumeric identifiers that indicate the type of paymentsmade to vendors or received from customers.There are many standard delivered SAP entries for eachcountry

ELECTRONIC BANKING:

Explain briefly how you can import electronic bank statements into SAP. A:A text file is received from the bank which is thenuploaded into the SAP system. The file contains details of the company’s bank movements e.g. cheques, bank interest, bank charges, cash receipts etc. Depending on thesystem configuration SAP will attempt to book thesetransactions automatically to the correct accounts to avoidthe need for manual entries by SAP users. Any postings which the system cannot derive automatically can be booked through “post-processing

AUUONTS RECEVABILE:

RECEDUAL PAYMENT:

In Accounts Receivable, what’s the difference between the‘residual payment’ and ‘part payment’ methods of allocating cash ? A:These are the two methods for allocating partialpayments from customers. As an example, lets say invoice A123 exists for 100$ and acustomer pays 60$. With partial payment, the 60$ simply offsets the invoiceleaving a remaining balance of 40$ With residual payment, invoice A123 is cleared for the full value 100$ and a new invoice line item is booked for theremaining balance of 40$

Correspondence TYPES:

What are correspondence types in AR/AP ? A:Correspondence types are different outputs which can be printed and sent to your business partners basedaround either customer vendor or GL information.Popular correspondence types include customerstatements, payment notices and line items lists. Withinthe most common AP/AR functions (such as ‘Display vendor line items’ below there is the option to generatecorrespondence requests. At the end of the working day these can be printed together as a batch and sent out

DUNNING:

What is “dunning” in SAP ? A:Dunning is the process by which payment chasingletters are issued to customers. SAP can determine whichcustomers should receive the letters and for which overdueitems.Different letters can be printed in SAP depending on how far overdue the payment is; from a simple reminder to alegal letter.The dunning level on the customer master indicates whichletter has been issued to the customer

REASON CODE:

What are “reason codes” used for in the AccountsReceivable module and what are the factors to beconsidered in their configuration? A:Reason codes are tags which can be assigned to explainunder/overpayments during the allocation of incomingcustomer payments. They should not be confused with‘void reason codes’ used when outgoing checks aregenerated.During configuration the following are determined• Whether the items booked with these reason codes areto be flagged as disputed items for the purposes of credit management (disputed items do not increase acustomer credit exposure)• The type of correspondence (if any) to be generated forthis reason code as a result of the under/over payment• Whether a separate line item should be created tocharge off the payment differences to a separate G/Laccount.

RATE FACTORS:

What are exchange rate “factors” ?

A:Exchange Rate factors are the relationships betweenone currency and another to which an exchange rate isapplied.For example you may define the Indonesia Rupiah to US$factor as 10000 : 1Combined with an exchange rate of 0.95 this would equateto 9500 IDR to 1 USD

PARKING DOCUMENTS:

What is document parking and why is it important whenconsideration internal control procedures and “segregationof duties” ? A:Parking is a SAP term which means a posting(AP/AR/GL) can be temporarily saved (possibly withincomplete information) without hitting the affectedledger(s). A separate person can then release the posting tothe ledger when required.This is useful for example if junior staff are to initially enter the invoices, before their supervisor checks it and books it to the ledger. Another popular use is when entering GL journals withmany hundreds of line items. The document can be part-saved allowing for completion at a later date

DOCUMENT CURRENCY:

Explain the document currency (WRBTR) and localcurrency fields (DMBTR) when posting a document in SAPFI. A:On the document header, the currency key is entered.If this is different from the entity currency (or localcurrency), an equivalent amount in local currency iscalculated automatically by the system and stored in thefield “local currency”. It is possible however to overwritethe system proposed value in this field manually.If the local amount is manually overwritten, and thedifference between the implied exchange rate is sufficiently different to the rate used by the system, a warning or errormessage is displayed (depending on system configuration)

GR/IR ACCOUNT CLEARING:

Explain what is meant by GR/IR clearing A:Goods receipts from the MM module typically generate entries such as• Debit Stock, Credit GR/IR clearingThis indicates an increase in stock and a pending entry to be cleared once the invoice from the vendor arrives. At month end there will be a need to accrue thosepurchases received but not yet invoiced hence the reasonfor the account named ‘Good Received / Invoice Received’Typically the balance on this account at month endindicates the value of goods received but not invoiced.Once the invoice is received the corresponding entry is booked.• Credit Vendor, Debit GR/IR These opposite entries to the GR/IR need to be clearedagainst each other. (This account is managed on an openitem basis). Using the F.19 transaction this can be doneautomatically by using the PO and line item number storedin the assignment field

Career

Ap ar questions