FI AR PPT

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SAP FI

Accounts Receivable

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Table of Contents

AR Overview

Sub Processes

Master Data

Credit Management

Invoice Processing

Cash Receipting / Payments

Account Analysis / Reconciliation

Periodic Processing

Reporting

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SAP Modules - Overview

Sales &Distribution

SD

MM

PP

QM

PM

HR

FI

CO

AM

PS

OC

IS

MaterialsMgmt.

ProductPlanning

QualityMgmt.

Plant Maint.

HumanResources

FinancialAccounting

Controlling

Fixed AssetMgmt.

ProjectSystem

Office &Comm.

IndustrySolutions

SAP R/3

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FI Financial Accounting Modules

FI - Financial Accounting Modules

FI

Accounts Payable

Cash Management

Special Ledger

LCLegalConsolidation

TMTravelManagement

Asset and InvestmentManagement

General Ledger

Accounts Receivable

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InvoiceProcessing

MasterData /Credit

Management

Accounts

Receivable

CashReceipting /

Payments

AccountAnalysis &

Reconciliation

Reporting

FinancialAccounting

Process decompositions are the starting

point for our process documentation.

They summarise what is involved in a

the AR process at a high level

PeriodicProcessing

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Master Data

Maintenance

Creation 3 Levels General Data (name, address)

Company Data (reconciliation acct, payment term)

Sales Data (SO currency, incoterms)

Change

Block Delete

Account Groups

Intercompany

One-time customers

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Request to

Create

Customer

Account

Change

Customer

Account

Block Customer

Account

Mark Customer

Account for

Deletetion

Mantain Customer

Account

Mantained

CustomerAccount

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CustomerMaster

General data Address

Control data

Marketing

Export data

Contact persons

Company Code data Account Management

Payment Transactions

Correspondence

Insurance

Sales Area data Sales

Shipping

Billing document

Partner functions

Client

230

CompanyCode9100A Ltd

Sales Organization9100

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Customer Master Data contains:

General data Does not depend on the company code or the sales and

distribution organisation

Applies to one business partner for all company codes, and

in all sales areas, and includes: Company name

Address

Telephone number

Data that is unique to a customer, and shared by alldepartments

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Company Code data

Company code data only applies to one company code(Legal business). This data is only relevant to Financial

Accounting.

If you edit a master record, you must specify the

customer number and company code to access thescreens containing company code data.

You can only invoice a Payer (partner function) if youhave entered data in the Financial Accounting view.

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Sales and Distribution data

The data for one customer can differ for each sales area. Thesales area is a combination ofSales Organization,Distribution Channel and Division. Some data is onlyrelevant to Sales and Distribution, and includes:

Pricing data

Delivery priority

Shipping conditions

If you edit a customer master record, you must enter thecustomer number and the sales area in order to access

screens containing sales and distribution data. You can only process sales and distribution transactions, eg:

a sales order, after entering the sales and distribution data fora customer.

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Sales Territory

Bill-to party*

Payer*

Ship-to party*Sold-to party*

Contact personsSales Agent

* mandatory functions

Partner functions

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Sold-toCustomer

Ship-to Customer

One-Time

Customer

0001

0002

CPD

GroupsImplemented

0003

0004

ZAF1

Sold to

Ship to

Payer

One-time

Bill to

Plant / Affiliate

ZSWPSwap Partner

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AccountGroup

PartnerFunction

0001

0002

0003

0004

CPD

ZAF1ZOTR

Z002

Z007

ZSWP

Sold-to

Ship-to

Bill-to

Payer

One-time

Plant / AffiliateSales Territory

International SH

Sales Agent

Swap Partner

NumberRange

0010000000 001999999

0010000000 001999999

0010000000 001999999

0010000000 001999999

0020000000 002999999

0000000001 0000019999A ZZZZZZZZZZ

0010000000 001999999

A ZZZZZZZZZZ

1000000000-1999999999

NumberAssignment

Internal

Internal

Internal

Internal

Internal

ExternalExternal

Internal

External

External

Internal Assignment: SAP assigns a unique number each

time a master record is created External assignment:User creating the master record can

enter their own unique number

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Intercompany

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We use One-timeCustomers Master

Record to avoid large

number of unnecessarymaster data

Every time we enter abusiness transaction, the

systems stores thespecific Master Datainformation separately inthe document

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Blocking / Unblocking For processing at various levels:

Sales order processing

Delivery processing

Billing processing

Credit control reasons

Requires validation

New customer Credit Control

Block / Unblock

Block CustomerMaster record

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Flag for deletion For processing at various levels:

Sales order processing

Delivery processing

Duplication of data

Redundancy of use

Duplication ofcustomer master

Redundantrecords

Flag for deletion

Delete CustomerMaster record

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Delete all areasor data for a specific CC

Prevents SAP from deletingthe general data or company

code and general data

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Pre-requisites for archiving a record:

The account cannot contain any transaction figures

Transaction figures from prior years that have not been archived will

prevent the system from deleting the account master record

The account must be marked for deletion in its master record

No longer used /

created in duplication

SAPDatabase

Extracted from

database

Transferred to

archive system

Flag Placed

In a file

Block

Customermaster

record

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Credit Management can minimize the credit risk by

defining specific credit limits for your customers This is particularly useful if your customers are in

financially unstable industries or companies, or if youconduct business with countries that are politically

unstable You can specify your own automatic credit checks based

on a variety of criteria

You can also specify at which critical points in the sales

and distribution cycle (for example, order entry, delivery,goods issue) the system carries out these checks

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Credit Control Area

A hierarchical unit for managing customer credit limits

A credit control area can include one or more company codes

If a customer is created in several company codes that areassigned to different credit control areas, a separate credit limit is

managed for the customer in each of the different credit controlareas

9400 LatinAmerica

9200 -America

9100 - AsiaPacific

9300 MiddleEast

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CHQ

Overall Credit Limit: $1,000,000

Individual limit: $450,000

9400 94029401 9100 9300 9301

Company Codes

9200

9100 Asia Pacific

Limit: $150,000

9400 Latin America

Limit: $250,000

9300 Middle East

Limit: $450,000

9200 America

Limit: $150,000

Credit Control Areas

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Central Data

Contains information for the current credit limit assigned andmaximum permitted credit limits

Total amount

Individual amount

Status

Credit limit data - Contains information relating to credit limits andpercentage used:

Receivables

Special liabilities

Sales value

Internal data - Contains information relating to the customer riskcategory and blocking a customer for all transactions excludingbilling

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Credit Exposure

The customer's credit exposure may not exceed their credit limit The credit exposure is the total combined value of the following

documents:

Open orders

Open deliveries

Open billing documents Open items (accounts receivable)

Executing automatic credit check in sales orderprocessing

Non-critical fields

Not re-executed for changes made to these fields e.g. Texts

Critical fields:

Re-executed for changes made to critical fields e.g. Payment terms,Price, quantity

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Program Function

RFDKLI10 Customers with missing credit data

This report checks the data for the credit limit for completeness, and produces the corresponding error lists . These can be used to re-

maintain the corresponding definitions manually, or per Batch Input.

RFDKLI20 Reorganization of credit limit for customers

This report enables you to reorganize the credit limit information in the control areas .RFDKLI30 Short overview credit limit

The report lists the central and control area-related data per customer.

RFDKLI40 Overview credit limit

The report provides you with an extensive overview of the customers credit situation.

RFDKLI41 Credit master sheet

The credit master sheet enables you to display and print out the customer master data for a single account, which is needed for the

area of credit management.

RFDKLI42 Early warning list

The early warning list enables you to display and print out customers in credit management, who are viewed as critical customers in the

area of credit checks in SD.RFDKLI43 Master data list

The master data list enables you to display and print out customers credit cards. In particular, you can display information not

contained in the s tandard system, for example, user-defined fields or external data, which you have created with specific add

RFDKLI50 Mass change credit limit data

This report allows quick mass change for master data in credit management .

RFDKLIAB Change display, credit management

With this report, you can display changes for credit management master data for all accounts.

RVKRED06 Checking blocked credit documents

The report checks all blocked documents from credit view. The report is started in the background, and should run after the incoming

payments programs.

RVKRED77 Reorganization credit data SD

The report enables you to reorganize open credit, delivery and billing document values . It is used, for example, when updating errors

occur.

RVKRED08 Checking sales documents which reach the credit horizon

The report checks all sales documents, which reach the dynamic credit check horizon, as new. The report runs periodically, and should

run at the start of a period. The period for the date of the next credit check is proposed from the current date, with

RVKRED09 Checking the credit documents from credit view

Released documents are only checked if the validity period for the release has run out (number days).

RVKRED88 Simulation reorganization credit data SD

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InvoiceProcessing

MasterData /Credit

Management

Accounts

Receivable

CashReceipting /

Payments

AccountAnalysis &

Reconciliation

Reporting

FinancialAccounting

Process decompositions are the starting




PeriodicProcessing

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Invoice Processing

SAP R/3 supports the following transactions:

Sundry Invoice

Credit/Debit Notes

Down Payment

Bill of Exchange Receivable

Parked Documents

Foreign Currency

SD Billing

Inter-company postings

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Sundry Invoice Processing

Create

A/R account

posting

Create

A/R Posting

Fast Entry

Hold an

incomplete

document

Create

A/R posting with

reference

Complete

Posting??No

Posted Entry

Post

Manual Journal

with Clearing

Create

A/R invoice

using a Sample

Document

Create/Display

a Parked

Document

Post/Release

a Parked

Document

Create an

Account

Assignment

Model

Create

Intercompany A/R

Posting

Create

Recurring

Document

Yes

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DocumentSimulation

After entering the document it is

possible: To post it immediately To park the document

To hold the document

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Terms of payment are arrangements made with a Customer governingfinancial settlement with respect to goods supplied and servicesperformed, e.g. cash on delivery, payment within 30 days.

Within payment terms, cash discounts and periods allowed for paymentare defined.

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Document

13 000 00031________________________

Sample Document

92 000 00044________________________

or

Reference _______________

Doc. Number ?

Control Sequence____________ Generate Reverse Posting Enter G/L Account Items Do Not Propose Amounts Display Line Items

Document13 000 00032

________________________

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Special GL Transactions allow the user to post the document to an alternative GLaccount instead of normal Customers reconciliation account,

They are defined in Customizing for Customers and Customers reconciliation accounts.

Customers

reconciliationaccounts

Accounts definedfor Special GLTransactions

Special GLIndicator

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BankAccount

Customers

Account

10

GL DownPayments

101 1

The Customer pays A Ltd a down-payment: $10.000,-

The down payment is booked on Customers account with Special GLindicator

The amount of $10.000,- is shown on Customers account, but on differentGL Account, instead of Customers reconciliation account

10

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To display the transaction posted with Special GL Indicator, markthe relevant field on the Line items display screen.

Dynamic selections may be used to search for different GL

indicators.

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Updating the document flow Creating documents in Financial Accounting

Updating the billing status

Updating the Sales Information System

Updating the credit account

Forwarding data to Profitability Analysis

Printed document / EDI to customer

Invoice

Sales Order

ProcessingInventory

Sourcing

Billing

processing

CustomerPayment

Invoice

Delivery &Shipping

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Debitnote

Debit memorequest

No billing block

Create debit memo

Billingdoc.

Credit noteCredit memorequest

Billing

block Create credit memo

after billing block has

been removed

Billing

doc.

OK

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A2 Ltd.

A Ltd.

A1 Ltd

F110

Inter-coy BillingInvoice (IV)

AR

AR

AP

Inter-coy BillingInvoice (IV)

F110

AP

SD Document

1000001144

HDR Ref:1000001144

SD Document

2000002244

HDR Ref:2000002244

FI Document3000015244

HDR Ref:2000002244

FI Document2000006344

HDR Ref:1000001144

AR header reference=

AP header reference

AR header reference

=AP header reference

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Complete and post later

Display/change/evaluateparked documents

Enter anincomplete

document

No postings take placeParkdocument

Line items

Documents

Post parked documents

MM Customer G/L account

Postings take place

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Parked document: Assigned number (according to document

type)

Document is available for editing for manyusers (depending on the authorizations inthe system)

Held document: Internal document number (defined by the

user)

Document is available for editing only forthe user who created it.

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The parked document may be:

Posted,

Edited,

Saved as completed,

Deleted.

Choose companycode

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Local currency - Functional currency of the company code

Document currency - Currency of the document

Group currency - Alternative currency for group reporting

For every Company Code theres defined a company code currency, ie,

every company code has a local currency.

Every document, posted in different currency than company codecurrency, is processed as a foreign currency document.

Accounting documents can be posted in a foreign currency

The foreign currency is converted to local currency and both are storedin the document along with the exchange rate

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1.

3.

2.

1. Exchange rate can be entered manually,

2. Or derived from Exchange Rates Table

3. System automatically translates the foreign currencyinto CC currency.

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InvoiceProcessing

MasterData /Credit

Management

AccountsReceivable

CashReceipting /

Payments

AccountAnalysis &

Reconciliation

Reporting

FinancialAccounting Process decompositions are the starting




PeriodicProcessing

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Business Transactions included in Process:

Customer Payments Manual Checks

Clear Customer Accounts

Post processing transactions

Inter-company Payments Idocs

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Cheques with

supporting

documents

Group

cheques

by lotsEnter

cheques list.

(by customer)

Reference

invoices paid.

Print

chequeslist

Post

Check whether

postings are correct ?

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Check Deposit List

Customer Account

Incoming checks Account

O.b.) 200,- 200,- (1

1) 200,-

200,- (2

2) 200,-

Bank Account

Postings

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House Bank ID

CustomerMatchode

Postprocessing

method:2 - batch input4 - direct posting(on-line)

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Posting

BatchInput

DirectPosting

Process

Log

Process

Log

Processingtype 2

Processingtype 4

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InvoiceProcessing

MasterData /Credit

Management

AccountsReceivable

CashReceipting /

Payments

AccountAnalysis &

Reconciliation

Reporting

FinancialAccounting Process decompositions are the startingpoint for our process documentation.



PeriodicProcessing

A t A l i / R ili ti

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Account Analysis / Reconciliation


Display Customers account balance and line items

Clear outstanding items on Customers

Post Customers documents with clearing

Perform automatically clearing procedures

Reverse documents

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Account balance displays totals of transactions, per month as well ascumulative values

The report may be printed or saved as a local file

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Line items report displays particular transactions,

It it possible to change the documents directly from this screen,

The report may be printed or saved as a local file

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1 2

3

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1 Customer invoice 46,0002 Customer invoice 20,0003 Customer payment 26,000

Customer ABC Inc.

1 46,000 46,000 3

Customer ABC Inc.

3 20,000 20,000 2

Bank

3 26,000

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Reversal of documents that were cleared before is not possible,

First the clearing operation must be reset.

Display cleared items

Reversal of clearing

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Document entered incorrectly

Document corrected by Reversal: Reverse with a standard

reversal posting

Reverse with a negativeposting

Document re-entered correctly

Balance sheetAssets

Liabilities

Shared equity

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Many documents may be reversed at the same time,

Process may be scheduled to be performed in the background.

Mass ReversalProcedure

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InvoiceProcessing

MasterData /Credit

Management

Accounts

Receivable

CashReceipting /

Payments

AccountAnalysis &

Reconciliation

Reporting





PeriodicProcessing

Period End Processing

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Period End Processing


Dunning

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Customer Open

Items

Customer MasterRecord

DunningProgram

Print DunningNotices

Update

Update

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The dunning run creates a dunning proposal which can be edited,deleted, and recreated as often as necessary.

If desired, the dunning run can directly and automatically be followed bythe printing of dunning notices. The editing of the dunning proposalwould therefore be skipped.

As a general rule, receivables are due at the net due date.

Schedule DunningRun

Check / Edit DunningProposal

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Customer Master

0001

You can prevent customer invoice from dunning. There aretwo ways to to it: You can enter a dunning block in the item (e.g. customer invoice);

then the system puts this item on the blocked items list and thisitems is not included in the dunning notice.

You can enter a dunning block in the customer master. In suchcase the system does issue a dunning notice at all for this account.

DunningBlock

Line ItemsOR

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A Ltd dunning procedure has three dunning levels.

The higher the dunning level the more insistent is thedunning text.

Each item to be dunned gets a dunning level according toits days in arrears.

From one dunning run to another the dunning level can onlybe raised by one, i.e. no dunning level can be skipped.

Dunning Levels

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The print program for the dunning procedure: generates dunning notices,

entersthe dun date and the dunning level into the dunned items(e.g. invoices) and customer master records.

If one-time customers are dunned, the dunning data is onlyupdated in the items.

Dunning notices are printed in a sequence defined by sortcriteria.

Schedule

printout

1

Check Spool Request(s)

2 Print Notices

3

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InvoiceProcessing

MasterData /Credit

Management

Accounts

Receivable

CashReceipting /

Payments

AccountAnalysis &

Reconciliation

Reporting





PeriodicProcessing

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SAP system offers number of reports that help analyzing

entered business transactions: Open Items List

Cleared Items List

Account List

Account Balance List

Customised Reports

Aged Open Items List

Report can be: Printed out directly to the printer,

Saved as a local file (txt format, Excel file etc.)

Sent by e-mail

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2

SAP Menu

Transaction SA38

A user can run the required report in two ways: Directly from The Report Tree,

Using transaction SA38, provided that he/she knows the reportsname

1

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Duedateanalysis

Currencyanalysis

Overdueitems

Evaluation types

- Business Area

- Company code

- Corporate group

Evaluation Views

Variable