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The document outlines the agenda for Day 2 of an SAP FI bootcamp training. It includes reviewing concepts covered on Day 1 and then providing overviews of general ledger period end closing and reporting, bank accounting, accounts receivable key concepts and configuration, and accounts receivable reporting. Exercises are included for participants to practice creating recurring entries and processing them, as well as accessing sample reports.

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Copyright © 2007 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Copyright © 2007 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Day 2 SAP Financial Accounting (FI) Bootcamp
2 Agenda – Day 2 • Review of Day 1 • General Ledger – Period End Closing & Reporting • Bank Accounting – House Bank/s • Accounts Receivable – Key Concepts • Accounts Receivable – Organisation Structure • Accounts Receivable – Master Data • Accounts Receivable – Configuration • Accounts Receivable – Business Transactions • Accounts Receivable – Reporting and Conversion Tips
3 • We covered the following topics on Day 1: – Financial Accounting – General Ledger – Master Data – Enterprise Structure – General Ledger – Business Transactions & Open and Cleared Items Review of Day 1
4 • Review of Day 1 • General Ledger – Period End Closing & Reporting • Bank Accounting – House Bank/s • Accounts Receivable – Key Concepts • Accounts Receivable – Organisation Structure • Accounts Receivable – Master Data • Accounts Receivable – Configuration • Accounts Receivable – Business Transactions • Accounts Receivable – Reporting and Conversion Tip Agenda – Day 2
5 • Month End Closing – Open/close posting period – GR/IR accounts automatic clearing – Record accrual/deferral – Recurring Document Entries – Bank reconciliation – Foreign currency revaluation • Year End Activity – Balance carried forward (for Year end closing) – Document Number Range (for Year end closing) • Reporting – Month End Closing – Reporting General Ledger – Period End Closing & Reporting
6 • After period end closing, all transactions for the period/month is completed and periodic reporting; i.e., financial statements, statutory reporting, internal reporting, can be produced • No accounting postings could be made to the closed period Month End Closing
7 • Key month end and year end activities: – Open/close posting period – GR/IR accounts automatic clearing – Record accrual/deferral – Recurring Document Entries – Bank reconciliation – Foreign currency revaluation – Balance carried forward (for Year end closing) – Document Number Range (for Year end closing) Month end closing should be seen as integrated activities between all FI sub-modules, Controlling module (e.g., cost allocation & closing), and other modules. Comprehensive step by step and detailed schedule need to be defined and followed by the business Month End Closing (cont.)
8 • Open/close period is done per variant and account types. One variant can be used for more than one company code • Period setup for account type ‘+’ all will override all other account types • Posting period can be made available for limited set of users using the authorization group Month End Activities: Open/Close Posting Period
9 • There are two set of periods that can be open at the same time – In the example below, the current period was January 2007. However, posting period 13/2007 – 16/2007 was still open for adjustment postings; e.g., based on audit/tax issues Variant Account type (A, D, K, M, S, +) Month End Activities: Open/Close Posting Period (cont.)
10 • To match goods receipts with their corresponding invoice and there by reconciling the Goods Receipt/Invoice Receipt (GR/IR) account Goods receipt: Dr. Inventory Cr. GR/IR Invoice verification: Dr. GR/IR Cr. A/P automatically cleared Month End Activities: GR/IR Account Automatic Clearing
11 • Tcode FBS1 • An accrual represents current period revenue or expense for unrecorded transactions • A deferral delays represents previously recorded revenue or expense • Can be posted with account assignment model or posted with reference function • Accruals/deferrals are reversed in a later period, as they are often caused by posting delays from other sources. Month End Activities: Record Accrual/Deferral
12 • Recurring documents represent entries posting to same set of accounts, repeatedly, for multiple periods. • Transaction postings for expenses like rental expenses, where the tenure, amount and the GL accounts are fixed, can be repeated automatically using recurring document entries • A recurring document therefore represents a template for repeating the same entry for several periods. Recurring document does not impact the books of accounts until posted to the GL • Recurring document programme, when executed, posts an accounting document; The values, accounts etc. for the document are based on the recurring document template. Month End Activities: Recurring Document Entries
13 • In most cases, each bank account will have a corresponding bank clearing account • Before being verified against actual bank statement, all postings should be made to a bank clearing account. • It allows clear understanding of which processes have cleared the bank (i.e. have been fully completed) and which ones are in process – i.e. check sent out, but not yet cashed. • It can be used to further segment the information being posted to the bank account; e.g., same bank account but different payment method Month End Activities: Bank Reconciliation
14 • Bank Account: actual bank account that is reconciled with bank statement • Bank reconciliation matches entries in bank clearing account against actual bank statement and journal transaction into the bank account – Manual bank reconciliation: User manually clears each bank clearing open items and journal entries to the bank account – Automatic bank reconciliation: Bank statement from the bank is uploaded into the system and the system automatically post the reconciliation journal Month End Activities: Bank Reconciliation (cont.)
15 • Transaction, local or company code currency, Group currency • Exchange rates are used to make conversions at the time of document entry • Foreign currency revaluation - At month end, transactions recorded in foreign currency needs to be adjusted according to the end of month exchange rate - The system defaults to using exchange rate type “M”. If a different rate is required it can be set up in configuration - Adjustment for open vendor items, open customer items, loan, and deposit accounts will be posted to unrealized gain/loss foreign exchange account. These entries will be reversed in the next period - Foreign currency gains/losses are not realised until the money comes out/in of the bank account Month End Activities: Currencies and Foreign Currency Revaluation
16 • Revaluation of foreign currency bank accounts will incur a realized gain/loss that is posted to the foreign exchange gain/loss account. These entries will not be reversed in the next period • It is required for US GAAP and other accounting standards • Tcode F.05 (Classic GL) Month End Activities: Currencies and Foreign Currency Revaluation (cont.)
17 • Balance Sheet, customer and vendor accounts are carried forward to the same accounts • Profit & Loss accounts are carried forward to retain earnings account's) as specified in the configuration. The P&L accounts balance is 0 in the new year As noted before, year end closing should be seen as integrated activities between all FI sub-modules, Controlling module (e.g., cost allocation & closing), and other modules. Comprehensive step by step and detailed schedule need to be defined and followed by the business Year End Activities: Balance Carried Forward
18 • It is a common practice to use Year-dependent document number ranges for accounting document • As part of the year end process, document number ranges have to be defined for the next fiscal year. • Analysis of the document number status reflects the usage of the document number range in a fiscal year. • Accordingly the document ranges for the new fiscal year can be defined. It can be copied from the previous year and modified if required. Year End Activities: Document Number Ranges
19 • Refer to System Walkthroughs 2.1 & 2.2 – Period End Closing in your Faculty Guide. − Open/Close Posting Period (OB52) − GR/IR Automatic Clearing (F.13) − Record Accrual/Deferral (FBS1, F.81) − Recurring Document (FBD1, F.14) − Document Number Ranges System Walkthroughs 2.1 & 2.2 – Period End Closing
20 • Refer to Exercise 2.1 – Create Recurring Entry in your Participant Workbook – Your task is to create a template and run a recurring entry Exercise 2.1 – Create Recurring Entry
21 • Refer to Exercise 2.2 – Process Recurring Entry in your Participant Workbook –Your task is to run a recurring entry that was created previously Exercise 2.2 – Process Recurring Entry
22 • Reporting – Accessed from Information Systems folder and can be executed at any given time – User needs to enter selection criteria at selection screen before executing the report (e.g., account number, vendor number, posting date, etc.) – SAP provides the following facilities to ease report generating process: • Save to local file (text, Excel, HTML format) • Variant  user defined set of criteria at selection screen that can be saved and retrieved • Dynamic Selection  to add field(s) as selection criteria • Multiple Selection  to include/exclude certain values from the selection criteria Closing and Reporting
23 • Balance Sheet and Profit & Loss  The format of the financial statements is determined by the Financial Statement Version (FSV) that is defined in the configuration – transaction OB58  Financial Statement Version contains Heading and Sub- heading and GL account range  This is one sample of many reports available GL account range Closing and Reporting (cont.)
24 • Refer to System Walkthrough 2.3 – Reporting in your Faculty Guide. – Display Chart of Accounts (S_ALR_87012326) – GL Account Balance (S_ALR_87012277) – GL Account Line Items (S_ALR_87012282) – Balance Sheet and Profit & Loss (S_ALR_87012284) – Define Financial Statement Version (OB58) *note this is just a sample of reports that are delivered System Walkthrough 2.3 – Reporting
25 • Refer to Exercise 2.3 – Display Chart of Accounts in your Participant Workbook – Your task is to display the chart of accounts Exercise 2.3 – Display Chart of Accounts
26 • Refer to Exercise 2.4 – GL Account Balances Report in your Participant Workbook – Your task is to access the GL Account Balances Report screen Exercise 2.4 – GL Account Balances Report
27 • Refer to Exercise 2.5 – GL Account Balance Display in your Participant Workbook – Your task is to access the GL Account Balance Display screen Exercise 2.5 – GL Account Balance Display
28 • Refer to Exercise 2.6 – GL Account Line Items Report in your Participant Workbook – Your task is to display the GL Account Line Items Report Exercise 2.6 – GL Account Line Items Report
29 • Refer to Exercise 2.7 – Generate Balance Sheet/Profit and Loss Statement in your Participant Workbook – Your task is to run the Balance Sheet/Profit and Loss Statement reports Exercise 2.7 – Generate Balance Sheet/Profit and Loss Statement
30 • Refer to Exercise 2.8 – Leading Ledger & Non- Leading Ledger posting in your Participant Workbook – Your task is to post transactions in all ledgers and local ledgers and display the transactions Exercise 2.8 – Leading Ledger & Non-Leading Ledger posting
31 • Refer to Exercise 2.9 – New GL Reporting versus Classic GL Reporting, in your Participant Workbook – Your task is to run the reports and view the differences in features Exercise 2.9 – New GL Reporting versus Classic GL Reporting
32 Questions
33 Agenda – Day 2 • Review of Day 1 • General Ledger – Period End Closing & Reporting • Bank Accounting – House Bank/s • Accounts Receivable – Key Concepts • Accounts Receivable – Organisation Structure • Accounts Receivable – Master Data • Accounts Receivable – Configuration • Accounts Receivable – Business Transactions • Accounts Receivable – Reporting and Conversion Tip
34 • Each bank that a company uses for incoming and outgoing payments is set up as a house bank and bank account in SAP • Each house bank of a company code is represented by a bank ID in the SAP system, every account at a house bank by an account ID • The house bank account master record contains the house bank ID, unique account number, Bank GL account House Bank Such as: Westpac Bank Account Bank Account House Bank/s & Bank Account
35 House Bank/s & Bank Account (cont.) • The GL account for the specified bank account is to be managed in the same currency as the account at the bank • For domestic banks, you should enter the bank number in the "bank key" field and for foreign banks, you should enter the SWIFT code in this field • An appropriate Bank Account GL Structure must be formed to use the flexibility of SAP • An strategic Bank Account GL structure helps in determining how much confirmed cash, floating cash out, and floating cash in there is on a particular day
36 EFT Clearing Account GL acct # 113102 Check Clearing Account GL acct # 113101 Bank Account (Confirmed Cash) GL acct #113100 Vendor Account 2 Vendor Account 1 Back Account Representation
37 • The house bank master record is created and changed in configuration (SPRO), it can also be changed from the SAP menu (next slide) • The house bank account master record can only be changed from configuration • House bank is dependent on company code • House bank is represented by alphanumeric character whose length can be up to 5 • Lockbox configuration is not required for Australia, 3rd party collect funds and deposit into bank account Configuration – House Bank/s
38 Configuration – House Bank/s (cont.)
39 • The bank master record for Business Partners (Vendors, Customers, Employees) is created and changed from the SAP Menu • The bank master record for Business Partner can also be created while creating vendor and customer record at the time of entering bank details • Bank master records can be created in the Business Partner master record; however, in a live system authorizations should not allow the Business Partner Master Record creator to also create Bank Master Records (separation of duties – Sarbanes Oxley Control) Bank Master Records
40 Create Bank Master Records
41 Bank Accounts • In a house bank we can have number of bank accounts (e.g., current account, foreign exchange account, term deposit account) • Each bank account is identified by a house bank ID and a specific account ID • The GL accounts which needs to be entered in bank account details has always to be a GL account for confirmed cash account not clearing account • While creating GL master record for the confirmed cash account, the house bank ID and account ID needs to be entered in bank details in company code (on the tab Create/Bank /Interest). Relevant to cash flow box should be checked
42 Create Bank Accounts Screen 1 Screen 2
43 System Walkthrough 2.4 – Display House Bank • Refer to Walkthrough 2.4 – Display House Bank in your Faculty Guide. –Display House Bank
44 System Walkthrough 2.5 – Create House Bank • Refer to Walkthrough 2.5 – Create House Bank in your Participant Workbook. –Create House Bank –Create GL account and assign to new House Bank/Account ID
45 Questions
46 Agenda – Day 2 • Review of Day 1 • General Ledger – Period End Closing & Reporting • Bank Accounting – House Bank/s • Accounts Receivable – Key Concepts • Accounts Receivable – Organisation Structure • Accounts Receivable – Master Data • Accounts Receivable – Configuration • Accounts Receivable – Business Transactions • Accounts Receivable – Reporting and Conversion Tips
47 • Order to Cash Overview • Purpose • Sub Ledger • Customer Master Data • Invoice / Credit Memo • Credit Management • Head Office • Alternate Payer Key Concepts
48 Inventory Sourcing Delivery Billing Sales Order Processing Pre-Sales Activities Decrease Inventory AR Invoice Customer Payment Credit Check Dr. COGS Cr. Material Dr. Customer Cr. Sales FI/CO SD No FI posting Dr. Bank Cr. Customer CO: Profit Centre assignment (default from material being sold) Order to Cash Process Overview
49 • Accounts Receivable records accounting data for all customers who have master data. The accounting data includes: sales, credits, payments, adjustments • Standard Reports provide many views of the Accounts Receivable data for management of the amounts owing. They can be used for day to day reporting and for month end procedures • AR can provide key information to help with Credit Management and liquidity planning, through its link to Cash Management module Accounts Receivable – Purpose
50 • The Accounts Receivable Sub Ledger is made up of the customer accounts • All postings in the Accounts Receivable Sub Ledger are recorded directly in the General Ledger to a reconciliation account. A reconciliation account can only have postings made to it by the sub ledger, no direct postings can be made • The reconciliation account is stored in the customer’s company code master data • A special general ledger indicator is used to update other reconciliation accounts, for down payments, and bills of exchange Sub Ledger
51 • Special GL indicator can be used to record customer transactions to different reconciliation account, such as: – Down payments – Bills of exchange – Guarantees – Reserves for bad debts – Security deposits – Additional transactions can be defined by the user, such as employee advances / loans etc • Posting key for special GL transactions are: – 09 – Debit Customer – 19 – Credit Customer Define the Special GL Indicator in the configuration and specify the indicator upon posting Special GL Indicator
52 Special GL Indicator (cont.)
53 • Customer master data (records) are used by both the accounting (FI-AR) and the sales (SD) departments of an organisation • By storing Customer Master Data centrally, it can be accessed throughout the organisation and avoids the need to enter information twice. It also avoids inconsistencies in master data by maintaining it centrally. If the address of one of your customers is changed, for example, you only have to enter this change once, and your accounting and sales departments will always have up-to-date information Customer Master Data
54 • There are 3 views of Customer Master Data: – General data • The general area includes the customer's name, address, language, and telephone data • This data applies to every company code and sales organisation – Company code data • This data is specific to an individual company code. Company code data includes the reconciliation account number, payment terms, and dunning procedure – Sales data • This data is relevant to the sales organisations and distribution channels of your company. Sales data includes data on order processing, shipping, and billing • SD module needs to be implemented for this to be activated Customer Master Data (cont.)
55 • Invoice – Is an accounting document (a request for payment) for goods or services provided to a customer entered via transaction FB70 (or F-22) – Debits the customers account (posting key 01) • Credit Memo – Is an accounting document reducing the amount to be paid by a customer due to the return of goods, dispute with goods or services, etc. entered via transaction FB75 (or F-27) – Credits the customers account (posting key 11) – Invoices and credit memos can also be created automatically based on integration with SD Posting Key Extract Invoice/Credit Memo
56 Credit Management (1 of 3) • Credit management allows a company to minimize credit risk by defining a credit limit for customers – If both Accounts Receivable (FI-AR) and Sales and Distribution (SD) modules are implemented, the system can be customized to check on the customer’s credit limit. This can be done one or multiple points during the Sales and Distribution process (point of order, delivery, goods issue) – If the SAP Accounts Receivable (FI-AR) module is used to manage receivables, but a non-SAP system manages sales and distribution, credit management can be used. When an invoice is posted in Accounts Receivable the system can check whether the amount exceeds the credit limit
57 • Credit management structure includes: – Credit Control Areas: an organisational unit representing the area where customer credit is provided and monitored. The organisational unit can either be a single (de-centralized) or several company codes (centralized), depending on how credit is managed – Risk Category: determines which checks the system should carry out when processing orders in Sales and Distribution (SAP or non-SAP) Credit Management (2 of 3)
58 • Credit management structure also includes: – Credit Representative Groups: credit management employees can be assigned to a credit representative group. The credit representative group can be used as a selection criterion for evaluations and release functions – Customer Group: groups of customers can be defined in accordance with the company’s needs. An example would be to group customers by industry, country, or other criteria that help to carry out credit management more effectively Credit Management (3 of 3)
59 Head Office (1 of 3) • Customers could place orders locally via their branch, but pay invoices centrally from head office. This can be represented with head office and branch accounts. • An invoice can be entered for goods delivered to a branch, but have the system automatically post the invoice to the head office account. The system records the customer account number of the branch in the document. The payment is collected from the head office account. As a result, you can collect payments from several branches in one step.
60 Head Office (2 of 3) • The head office and branch accounts are created, displayed, changed, deleted, and blocked like all other customer master records. • To link a branch account to the head office account, the account number of the head office account is entered in the Head office field in the customer master record (Account Management Tab) of the branch account.
61 • You can only use a customer account as a head office if it is not a one-time account or branch account. • Branch accounts and head office accounts must belong to the same company code. • Dunning is only executed for the head office account. • Credit is maintained at the head office level. • Customer statements are generated at the head office level. Head Office (3 of 3)
62 • An Alternative Payer (customer number) is defined in the master record of the customer who created the invoices. • Automatic payments/receipts are made using the banks of the alternative payer account, rather than the original customer. • The alternative payer must have a customer master record. • Authorization to deduct from the alternative payers account must be received. Alternative Payer (1 of 6)
63 • The alternative payer can be specified in the general and the company code area of the customer master data. – If you specify an alternative payer in the general data, that alternative payer is valid for the customer in all company codes. – If you specify an alternative payer in both areas, the specification in the company code area takes precedence. Alternative Payer (2 of 6)
64 • The payer may need to be entered in the document. In this case, the option can be selected in the general data area. When you enter a document, there is a field on the screen in which you can enter an alternative payer. If this field is selected, the system displays a screen for the payer’s master data. • You can only use a customer account as an alternative payer if it is not a one-time account. Alternative Payer (3 of 6)
65 • Alternative payer and customer accounts do not have to belong to the same company code. • The following business processes are managed at the customer who created the invoices and NOT at the alternative payer level: dunning, credit, customer statements. Alternative Payer (4 of 6)
66 Alternative Payer (5 of 6) Enter Alternative Payer account number Payment document – Alternative Payer details included
67 Alternative Payer (6 of 6) • Note: If the SAP Sales & Distribution Module is implemented, the alternative payer can be handled by the Customer Account Group: Payer. • Other Customer Account Groups can be used for the following SD Partner functions: – Sold-to party – Ship-to party – Payer – Sales prospect – One-time customer
68 Your Experiences • Have you been involved in the implementation of an Accounts Receivable application? • If you have been involved, what were the key challenges?
69 Questions
70 Agenda – Day 2 • Review of Day 1 • General Ledger – Period End Closing & Reporting • Bank Accounting – House Bank/s • Accounts Receivable – Key Concepts • Accounts Receivable – Organisation Structure • Accounts Receivable – Master Data • Accounts Receivable – Configuration • Accounts Receivable – Business Transactions • Accounts Receivable – Reporting and Conversion Tips
71 Organisation Data – Credit Control Area • Credit control area is an organisational unit that represents an area responsible for granting and monitoring credit . • This organisational unit is either a single company code or, if credit control is performed across several company codes, multiple company codes. Credit information can be made available per customer within a credit control area.
72 Organisation Data – Sales Area • Sales Area is a combination of Sales Organisation, Distribution Channel and Division: – Sales Organisation is responsible for selling materials and services – Distribution Channel is a channel through which saleable materials or services reach customers. It includes wholesale, retail, and direct sales. You can assign a distribution channel to one or more sales organisations – Division is an organisational unit based on responsibility for sales or profits from saleable materials or services
73 Organisation Data – Sales Area (cont.) Client 1000 2000 3000 10 20 10 10 01 02 01 02 01 02 01 = Sales area Sales Organization Distribution Channel Division
74 Questions
75 Agenda – Day 2 • Review of Day 1 • General Ledger – Period End Closing & Reporting • Bank Accounting – House Bank/s • Accounts Receivable – Key Concepts • Accounts Receivable – Organisation Structure • Accounts Receivable – Master Data • Accounts Receivable – Configuration • Accounts Receivable – Business Transactions • Accounts Receivable – Reporting and Conversion Tips
76 Customer Master – General Data • This data applies to every sales organisation and company code.
77 Customer Master – Company Code Data • This data is specific to an individual company code.
78 Customer Master – Sales Area Data • This data is specific to a Sales Area and provides details for ordering, shipping and billing.
79 • Why is the customer master data maintained in 3 areas? – In an organisation, there are two company codes that do business with the same customer. The general data, such as the address, is stored in the general area. Both company codes use this data for communication with the customer. Each company code maintains data for financial accounting (such as the reconciliation account) and for their business relationship with the customer (such as payment terms) in their own company code area. The sales area data provides the details for ordering, shipping and billing the customer – The Sales and Distribution (SD) module is required to enter the sales data and to print invoices Customer Master Data (1 of 4)
80 • Examples of how the master data specifications are used: – Values in the master data are default values when you post items to the account; e.g., payment terms are defaulted during document entry – For processing business transactions; e.g., interest calculations, dunning – Account control data, such as the number of the GL reconciliation account, head office – Users can be prevented from accessing an account by setting up authorization groups Customer Master Data (2 of 4)
81 • Examples of how the master data specifications are used (cont.): – For internal management of the account an Accounting clerk can be assigned – For communication with the customer; e.g., the address, telephone and fax numbers, contact personnel – Cash Flow forecasting within the Treasury module uses the Cash Management Group, which defines the type of payer group the customer belongs to Customer Master Data (3 of 4)
82 GL Account: • Reconciliation Account • Groups type of receivables; e.g., domestic, foreign, subsidiaries. • Customer creator must be aware of how to assign the reconciliation account to provide the accurate view of the postings Customer Master Data (4 of 4)
83 • The Accounting Clerk Identification Code is entered in a customer’s master data. • The accounting clerk performs AR finance duties and may also be responsible for debt recovery from the customer. The ID is used to sort dunning. • The Accounting Clerk can also be defined as the Credit Rep Group. Accounting Clerk
84 • The account group is a grouping of properties that controls the creation of master records. • The account group controls the number range for the vendor master records. (Each vendor master is identified with a unique account number.) • Account group also controls if the number range is externally assigned or internally assigned. • Account group controls the field status of the vendor master maintenance – If the field entry is Suppressed/Required/Optional/Display. Customer Master Data – Account Group
85 • Refer to System Walkthrough 2.6 - Configuration in your Faculty Guide. – Define Account groups with Screen Layout (customers) – Create Number Ranges for customer accounts – Assign Number Ranges to customer account groups – Enter Accounting Clerk Identification Codes System Walkthrough 2.6 – Configuration
86 • Refer to System Walkthrough 2.7 - Master Data Maintenance in your Faculty Guide. – Display customer without Sales Org View – Display customer with Sales Org View System Walkthrough 2.7 – Master Data Maintenance
87 • Refer to Exercise 2.10 - Create Customer in your Participant Workbook. − Your first task is to create a customer − Next display the customer Exercise 2.10 – Create Customer
88 • Refer to Exercise 2.11 - Change Customer Record in your Participant Workbook. − Your task is to change the customer record Exercise 2.11 – Change Customer Record
89 Questions
90 Agenda – Day 2 • Review of Day 1 • General Ledger – Period End Closing & Reporting • Bank Accounting – House Bank/s • Accounts Receivable – Key Concepts • Accounts Receivable – Organisation Structure • Accounts Receivable – Master Data • Accounts Receivable – Configuration • Accounts Receivable – Business Transactions • Accounts Receivable – Reporting and Conversion Tips
91 Business Transactions Configuration • We will review the configuration of: – Payment terms – Reason codes – Default accounts assignment – Define tolerances for customers – Dunning – Interest calculation – Credit management
92 Payment Terms • Terms of payment involves discount amount and the related time frame sent to the customer. • The terms of payment configuration is same for both AR and AP. • The same terms of payment can be used for both AR and AP. • Installment payment system can also be defined as Payment Terms.
93 System Walkthrough 2.8 – Payment Terms • Refer to System Walkthrough 2.8 – Payment Terms in your Faculty Guide. −Terms of Payment −Installment Payment Terms
94 Reason Codes • Reason codes are defined to handle the payment differences in the form of: – Residual items – Partial payments – Postings on account • Per reason code, you can determine: – In which company code it is valid – Which correspondence type (payment notice to the customer) is connected to it – Short text and long text of the reason code • You can set the C indicator to charge off the differences for each reason code and D indicator for disputed item.
95 System Walkthrough 2.9 – Reason Codes • Refer to System Walkthrough 2.9 - Reason Codes in your Faculty Guide. –Display the Reason Codes and Payment Differences
96 • Default account assignment is configured for Cash Discount Granted, Exchange Rate Difference, Rounding Difference & Bank Charges (Customers). • For the above default account assignments, the following needs to be done: – Ensure that the GL Account for the above account assignment is created in the Chart of Accounts – Ensure the new accounts are an Expense account, not a Cost of Sales account – The above expenses account is created as cost element in Controlling Area – Default Cost Centre must be set up via transaction OKB9 Default Account Assignment
97 System Walkthrough 2.10 – Default Account Assignment • Refer to System Walkthrough 2.10 – Default Account Assignment in your Faculty Guide. –Define Accounts for Cash Discount Granted (Tcode OBXI) –Define Accounts for Exchange Rate Differences (Tcode OB09) –Define Account for Rounding Differences (Tcode OB00) –Define Accounts for Bank Charges (Customers) (Tcode OBXK)
98 • The tolerances are used for dealing with payment differences and residual items that may arise when payment clearing is carried out. • You specify the tolerances in one or more tolerance groups and assign a tolerance group to each customer/vendor using the master record. • In case of no tolerance: – Ensures payments equate to invoices – Must have manual journals entered to account for the write-off differences – Provides control, as a conscious decision has to be made to allow the customer to underpay Tolerances for Customers
99 • A tolerance group can be set for specific customers. • If a tolerance group is set up, you must also configure OBA4 – Tolerance for Employees (Users) with the same tolerance parameters to authorise them to post the allowable difference Tolerances for Customers (cont.)
100 System Walkthrough 2.11 – Tolerances for Customers • Refer to System Walkthrough 2.11 – Tolerances for Customers in your Faculty Guide. –Define Tolerances for Customer –Define Tolerances Group for Employees –Assign Users to the Tolerance Groups
101 • Dunning – Selects open items that are due – Sends letter/s to customers to remind them to pay • Dunning area – Dunning areas are used if several organisational units are responsible for carrying out dunning within one company code – These organisational units are referred to as dunning areas. The dunning area can correspond to a profit centre, a distribution channel, a sales organisation or a business area Dunning (1 of 3)
102 Dunning (2 of 3) • Dunning procedure –Set of dunning levels with different parameters for each level –A customer is assigned to a dunning procedure in their customer master data • Dunning level –Allows different strength of dunning letters to be sent, which depends on how overdue the invoice is • Dunning letter is created in a form
103 • Dunning run – Calculates overdue status for each invoice – Assigns a dunning level depending on the procedure that has been assigned to a particular customer – Prints out dunning letters that will be addressed to each customer – strength of these dunning letters will be based on the dunning level of the invoice Dunning (3 of 3)
104 Dunning Configuration (1 of 4) • Dunning program configuration is divided into the following categories: – Dunning procedure defines: • The key for the dunning procedure to be used • A description of the dunning procedure • Dunning interval in days • Minimum days in arrear (account) after which a dunning notice will be sent • Grace period per line item • Interest calculation indicator for calculation of dunning interest
105 Dunning Configuration (2 of 4) – Dunning Level: For each dunning procedure define the following under the tab dunning level: • Minimum number of days, referring to the due date of net payment to reach a certain dunning level. • If interest is to be calculated • Print parameters • If you wish to get dunning notice although no further account movement occurred
106 Dunning Configuration (3 of 4) – Charges: For each dunning procedure define the following: • Dunning charges, depending on the dunning level • dunning charges can be either a fixed amount or a percentage of the dunned amount • A minimum amount for the dunning charges can be set
107 Dunning Configuration (4 of 4) – Minimum Amount: For each dunning process define: • Minimum amount or percentage of the overdue items to reach a dunning level. • Minimum amount to be reached in order to calculate interest per dunning level – Dunning Text: For each dunning process, maintain the name of the form that will be used at each level
108 System Walkthrough 2.12 – Dunning Configuration • Refer to System Walkthrough 2.12 – Dunning Configuration in your Faculty Guide. –Display a Dunning Configuration
109 • Does the company calculate interest on overdue payments? – No  This configuration is not required – Yes  Continue • Be aware: setting up the interest calculation in SAP is a complicated process • Define the interest process: – How often is interest calculated? – What is the formula? – What are the journal implications? – Will the interest be recorded against one profit centre or against multiple? Interest Calculation
110 Interest Calculation (cont.) • SAP provides two types of interest calculation: –Balance interest calculation is applied to the entire balance of a GL or customer account, applying a particular interest rate for a specified period of time –Interest on arrear is applied to individual item in accounts receivable or accounts payable. A certain interest rate is applied to the items that are still open or unpaid at a specified date
111 • Refer to System Walkthrough 2.13 – Interest Calculation in your Faculty Guide. –Define interest calculation types –Prepare interest on arrears calculation –Define reference interest rates –Define time based terms –Enter interest values –Calculation of interest on arrears System Walkthrough 2.13 – Interest Calculation
112 Credit Management Configuration • In Credit Management Configuration, we will review the creation of: – Credit Control Areas – Credit Representative Groups – Risk Categories • And we will review Automatic Credit Control, which is configured in the Sales and Distribution Configuration
113 • Credit Control Areas are defined in the Enterprise Structure Configuration and assigned to company codes in the Credit Management Configuration Credit Control Areas 1 2 3
114 System Walkthrough 2.14 – Credit Management • Refer to System Walkthrough 2.14 – Credit Management in your Faculty Guide. –Credit control area
115 • Classifies the risk level of a customer • Risk categories are assigned to each credit control area • Parameters are set based on the risk category and credit control area to set conditions which will block sales to a customer, e.g. number of outstanding invoices; day of oldest open invoice (from document date) Risk Categories
116 • Risk categories are configurable: – Create as many as required – Define the parameters for each risk category and credit control area combination; it is best not to overcomplicate parameters – Category examples: • X01 New Customer: Tighten Parameters • H01 High Risk • M01 Medium Risk • L01 Low Risk: Loosen Parameters Risk Categories (cont.)
117 • What is a credit representative group? – Could be a collective of people or individual clerk – Point of contact between credit department and customer – Manages debt recovery for a specific customer – Credit reps are responsible for collecting monies from customers in their credit rep group Credit Representative Groups
118 • Used in credit management reports – To follow up outstanding amounts – Makes it easier to identify amounts owing and who is responsible for collecting these amounts Credit Representative Groups (cont.)
119 • Automatic Credit Control is defined in the Sales and Distribution Configuration using the combination of the Credit Control Area and Risk Category Automatic Credit Control
120 Questions
121 Agenda – Day 2 • Review of Day 1 • General Ledger – Period End Closing & Reporting • Bank Accounting – House Bank/s • Accounts Receivable – Key Concepts • Accounts Receivable – Organisation Structure • Accounts Receivable – Master Data • Accounts Receivable – Configuration • Accounts Receivable – Business Transactions • Accounts Receivable – Reporting and Conversion Tips
122 Business Transactions – Invoice Press enter to see which fields you have missed entering – a message will appear to advise fields missing An invoice is an accounting document (request for payment) for goods or services provided to a customer.
123 Credit Memo • A credit memo is an accounting document reducing the amount to be paid by a customer due to the return of goods, dispute with goods or services, etc.
124 • Refer to System Walkthrough 2.15 – Customer Invoice in your Faculty Guide. − Customer Invoice − Credit Memo System Walkthrough 2.15 – Customer Invoice
125 Dunning Run Process Dunning Process
126 System Walkthrough 2.16 – Dunning • Refer to System Walkthrough 2.16 – Dunning in your Faculty Guide. –Dunning procedure (F1500)
127 Exercise 2.12 – Create Invoice with Cash Payment Terms • Refer to Exercise 2.12 - Create Invoice with Cash Payment Terms in your Participant Workbook. –Your task is to create an invoice with cash payment terms
128 Exercise 2.13 – Create Invoice with 30-Day Payment Terms • Refer to Exercise 2.13 - Create Invoice with 30-Day Payment Terms in your Participant Workbook. –Your task is to create an invoice with 30-day payment terms
129 Exercise 2.14 – Reverse an Invoice • Refer to Exercise 2.14 - Reverse an Invoice in your Participant Workbook. –Your task is to reverse an invoice
130 Exercise 2.15 – Execute Dunning Procedure • Refer to Exercise 2.15 – Execute Dunning Procedure in your Participant Workbook. –Your task is to create a dunning run for your customer (refer to Dunning in Configuration section)
131 Exercise 2.16 – Create a Partial Credit Memo • Refer to Exercise 2.16 – Create a Partial Credit Memo in your Participant Workbook. –Your task is to create a Credit Memo for part of the cash payment terms invoice
132 • Payments are entered into SAP using transaction F-28 • Both full and partial payments can be accounted for Enter payment From customer F-28 Fully Paid? Standard Clearing F-28 Required Clearing? Residual Clearing F-28 No No Yes Yes Cash/Cheque Receipt From Customer Partial Clearing F-28 View result FBL5N YCUSTSTAT View result FBL5N YCUSTSTAT View result FBL5N YCUSTSTAT Entering Payments
133 Payment Clearing • An incoming payment should be cleared off against an invoice as soon as possible via F-28 – However, if a follow-up is required, the payment can be cleared later via F-32 • Payments are initially posted to the bank clearing account – When the EBS is loaded, open items in the bank clearing account need to be cleared via transaction F-03 Invoice 1000 1000 Payment Payment 1000 1000 EBS Load EBS Load 1000 Customer Account Bank Clearing Bank Account
134 • Refer to System Walkthrough 2.17 – Payments in your Faculty Guide. – Apply partial payment System Walkthrough 2.17 – Payments
135 • Refer to System Walkthrough 2.18 – Clearing of Open Items in your Faculty Guide. − Clear the open invoice, credit memo and partial payment documents System Walkthrough 2.18 – Clearing of Open Items
136 • Refer to Exercise 2.17 – Apply Incoming Manual Partial Payments in your Participant Workbook. –Your task is to apply incoming manual partial payments Exercise 2.17 – Apply Incoming Manual Partial Payments
137 • Refer to Exercise 2.18 - Clear Open Items in your Participant Workbook. –Your task is to clear open items Exercise 2.18 – Clear Open Items
138 Questions
139 Agenda – Day 2 • Review of Day 1 • General Ledger – Period End Closing & Reporting • Bank Accounting – House Bank/s • Accounts Receivable – Key Concepts • Accounts Receivable – Organisation Structure • Accounts Receivable – Master Data • Accounts Receivable – Configuration • Accounts Receivable – Business Transactions • Accounts Receivable – Reporting and Conversion Tips
140 Customer – Reporting • Key reports used for FI-AR include: – Line Item display of customer accounts – Customer account balances – Due date/Ageing Analysis
141 • Refer to System Walkthrough 2.19 – Reports in your Faculty Guide. − Display reports System Walkthrough 2.19 – Reports
142 • Refer to Exercise 2.19 - Display Account Balances in your Participant Workbook. – Your task is to display and browse account balances Exercise 2.19 – Display Account Balances
143 • Refer to Exercise 2.20 - Browse Account Line Items in your Participant Workbook. – Your task is to Browse Account Line Items Exercise 2.20 – Browse Account Line Items
144 • Refer to Exercise 2.21 – Generate AR Reports in your Participant Workbook. – Your task is to use your customer to execute different Accounts Receivable Reports Exercise 2.21 – Generate AR Reports
145 • If the Sales & Distribution (S&D) module is used, customers will generally be given an SAP-specific customer number (internally assigned) • If a legacy S&D system is used, the number will generally be externally assigned; however, this assignment will depend on where the customer is created (for example, in the legacy system or SAP) – A customer cross reference should be created as part of the conversion process Customer Master Conversion
146 • Cleansing is vital: – Address details need to be validated e.g., post codes and other required address fields as necessary – Confirm all customers to be converted. Usually a legacy system will contain a large number of obsolete or replicated customers which need to be cleansed – Street fields to be used in a consistent manner, which is an important consideration for form design • Determine conversion method – dependent on number of customers and skill level of team Customer Master Conversion (cont.)
147 • A/R open items need to be converted into the SAP system. The aging of converted documents needs to be correct: – Easier to set the payment terms to cash (0 days) – therefore, the baseline date is the due date – More difficult to assign the appropriate payment terms to the document • Conversion data map needs to be created to define which legacy fields will be converted and where they map to in SAP. Data constraints on field lengths and validated fields need to be considered Open Items Conversion
148 • All open items converted must be associated to a valid SAP Customer Master (using criteria listed above) • Following the open item conversion, a follow-up check to confirm that total of A/R open items is equal to value in the legacy system ledger account(s) should be conducted • Ideally, regardless of method for conversion, the number of open items to be converted should be minimized and managed Open Items Conversion (cont.)
149 Questions
150 1. Where are the three views of Customer Master Data? 2. What is the difference between a bank master record, a house bank and a business partner bank master record? 3. How are both sets of data created and changed? 4. Explain how to run the GL Account Balances Report. Knowledge Check
151 End of Day 2 Q & A
152 • General Ledger – Period End Closing & Reporting – Month End Closing – Year End Activity – Reporting • Bank Accounting Concepts and Transactions – House Bank & Bank Accounts – Bank Account Representation in SAP – Bank Master Creation • Bank Key • House Bank • Account ID End of Day 2 Lessons Learned (1 of 5)
153 • Accounts Receivable – Concepts and Organisation Structure – Order to Cash Process – Purpose of Accounts Receivable – Organisation Units and their inter-linkages • SD Organisation Units - Sales Area • Credit Management - Credit Control Area, Risk Category, Credit Representative groups • FI Organisation Units – Company code, Accounting Clerk End of Day 2 Lessons Learned (2 of 5)
154 • Accounts Receivable – Customer Master – Account Groups – Screen layouts, Number Ranges – Alternative Payer – Head office vs. Branch office – Reconciliation Account – Master data - General segment, Company code segment, and Sales Area segment – Master Data Maintenance End of Day 2 Lessons Learned (3 of 5)
155 • Accounts Receivable – Business Transactions – Payment Terms – Account Assignment for Automatic Postings – Dunning Process – Invoice Processing and Payments – Credit management and credit limits for customers • Accounts Receivable – Information System – Customer Balances report – Customer Line item reports – Trial Balance/Aging reports • AR Conversion – Useful Tips End of Day 2 Lessons Learned (4 of 5)
156 • Accounts Receivable – Business Transactions – Payment Terms – Account Assignment for Automatic Postings – Dunning Process – Invoice Processing and Payments End of Day 2 Lessons Learned (5 of 5)

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sap-fi-bootcamp-training-day2.ppt

  • 1. Copyright © 2007 Accenture All Rights Reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Copyright © 2007 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Day 2 SAP Financial Accounting (FI) Bootcamp
  • 2. 2 Agenda – Day 2 • Review of Day 1 • General Ledger – Period End Closing & Reporting • Bank Accounting – House Bank/s • Accounts Receivable – Key Concepts • Accounts Receivable – Organisation Structure • Accounts Receivable – Master Data • Accounts Receivable – Configuration • Accounts Receivable – Business Transactions • Accounts Receivable – Reporting and Conversion Tips
  • 3. 3 • We covered the following topics on Day 1: – Financial Accounting – General Ledger – Master Data – Enterprise Structure – General Ledger – Business Transactions & Open and Cleared Items Review of Day 1
  • 4. 4 • Review of Day 1 • General Ledger – Period End Closing & Reporting • Bank Accounting – House Bank/s • Accounts Receivable – Key Concepts • Accounts Receivable – Organisation Structure • Accounts Receivable – Master Data • Accounts Receivable – Configuration • Accounts Receivable – Business Transactions • Accounts Receivable – Reporting and Conversion Tip Agenda – Day 2
  • 5. 5 • Month End Closing – Open/close posting period – GR/IR accounts automatic clearing – Record accrual/deferral – Recurring Document Entries – Bank reconciliation – Foreign currency revaluation • Year End Activity – Balance carried forward (for Year end closing) – Document Number Range (for Year end closing) • Reporting – Month End Closing – Reporting General Ledger – Period End Closing & Reporting
  • 6. 6 • After period end closing, all transactions for the period/month is completed and periodic reporting; i.e., financial statements, statutory reporting, internal reporting, can be produced • No accounting postings could be made to the closed period Month End Closing
  • 7. 7 • Key month end and year end activities: – Open/close posting period – GR/IR accounts automatic clearing – Record accrual/deferral – Recurring Document Entries – Bank reconciliation – Foreign currency revaluation – Balance carried forward (for Year end closing) – Document Number Range (for Year end closing) Month end closing should be seen as integrated activities between all FI sub-modules, Controlling module (e.g., cost allocation & closing), and other modules. Comprehensive step by step and detailed schedule need to be defined and followed by the business Month End Closing (cont.)
  • 8. 8 • Open/close period is done per variant and account types. One variant can be used for more than one company code • Period setup for account type ‘+’ all will override all other account types • Posting period can be made available for limited set of users using the authorization group Month End Activities: Open/Close Posting Period
  • 9. 9 • There are two set of periods that can be open at the same time – In the example below, the current period was January 2007. However, posting period 13/2007 – 16/2007 was still open for adjustment postings; e.g., based on audit/tax issues Variant Account type (A, D, K, M, S, +) Month End Activities: Open/Close Posting Period (cont.)
  • 10. 10 • To match goods receipts with their corresponding invoice and there by reconciling the Goods Receipt/Invoice Receipt (GR/IR) account Goods receipt: Dr. Inventory Cr. GR/IR Invoice verification: Dr. GR/IR Cr. A/P automatically cleared Month End Activities: GR/IR Account Automatic Clearing
  • 11. 11 • Tcode FBS1 • An accrual represents current period revenue or expense for unrecorded transactions • A deferral delays represents previously recorded revenue or expense • Can be posted with account assignment model or posted with reference function • Accruals/deferrals are reversed in a later period, as they are often caused by posting delays from other sources. Month End Activities: Record Accrual/Deferral
  • 12. 12 • Recurring documents represent entries posting to same set of accounts, repeatedly, for multiple periods. • Transaction postings for expenses like rental expenses, where the tenure, amount and the GL accounts are fixed, can be repeated automatically using recurring document entries • A recurring document therefore represents a template for repeating the same entry for several periods. Recurring document does not impact the books of accounts until posted to the GL • Recurring document programme, when executed, posts an accounting document; The values, accounts etc. for the document are based on the recurring document template. Month End Activities: Recurring Document Entries
  • 13. 13 • In most cases, each bank account will have a corresponding bank clearing account • Before being verified against actual bank statement, all postings should be made to a bank clearing account. • It allows clear understanding of which processes have cleared the bank (i.e. have been fully completed) and which ones are in process – i.e. check sent out, but not yet cashed. • It can be used to further segment the information being posted to the bank account; e.g., same bank account but different payment method Month End Activities: Bank Reconciliation
  • 14. 14 • Bank Account: actual bank account that is reconciled with bank statement • Bank reconciliation matches entries in bank clearing account against actual bank statement and journal transaction into the bank account – Manual bank reconciliation: User manually clears each bank clearing open items and journal entries to the bank account – Automatic bank reconciliation: Bank statement from the bank is uploaded into the system and the system automatically post the reconciliation journal Month End Activities: Bank Reconciliation (cont.)
  • 15. 15 • Transaction, local or company code currency, Group currency • Exchange rates are used to make conversions at the time of document entry • Foreign currency revaluation - At month end, transactions recorded in foreign currency needs to be adjusted according to the end of month exchange rate - The system defaults to using exchange rate type “M”. If a different rate is required it can be set up in configuration - Adjustment for open vendor items, open customer items, loan, and deposit accounts will be posted to unrealized gain/loss foreign exchange account. These entries will be reversed in the next period - Foreign currency gains/losses are not realised until the money comes out/in of the bank account Month End Activities: Currencies and Foreign Currency Revaluation
  • 16. 16 • Revaluation of foreign currency bank accounts will incur a realized gain/loss that is posted to the foreign exchange gain/loss account. These entries will not be reversed in the next period • It is required for US GAAP and other accounting standards • Tcode F.05 (Classic GL) Month End Activities: Currencies and Foreign Currency Revaluation (cont.)
  • 17. 17 • Balance Sheet, customer and vendor accounts are carried forward to the same accounts • Profit & Loss accounts are carried forward to retain earnings account's) as specified in the configuration. The P&L accounts balance is 0 in the new year As noted before, year end closing should be seen as integrated activities between all FI sub-modules, Controlling module (e.g., cost allocation & closing), and other modules. Comprehensive step by step and detailed schedule need to be defined and followed by the business Year End Activities: Balance Carried Forward
  • 18. 18 • It is a common practice to use Year-dependent document number ranges for accounting document • As part of the year end process, document number ranges have to be defined for the next fiscal year. • Analysis of the document number status reflects the usage of the document number range in a fiscal year. • Accordingly the document ranges for the new fiscal year can be defined. It can be copied from the previous year and modified if required. Year End Activities: Document Number Ranges
  • 19. 19 • Refer to System Walkthroughs 2.1 & 2.2 – Period End Closing in your Faculty Guide. − Open/Close Posting Period (OB52) − GR/IR Automatic Clearing (F.13) − Record Accrual/Deferral (FBS1, F.81) − Recurring Document (FBD1, F.14) − Document Number Ranges System Walkthroughs 2.1 & 2.2 – Period End Closing
  • 20. 20 • Refer to Exercise 2.1 – Create Recurring Entry in your Participant Workbook – Your task is to create a template and run a recurring entry Exercise 2.1 – Create Recurring Entry
  • 21. 21 • Refer to Exercise 2.2 – Process Recurring Entry in your Participant Workbook –Your task is to run a recurring entry that was created previously Exercise 2.2 – Process Recurring Entry
  • 22. 22 • Reporting – Accessed from Information Systems folder and can be executed at any given time – User needs to enter selection criteria at selection screen before executing the report (e.g., account number, vendor number, posting date, etc.) – SAP provides the following facilities to ease report generating process: • Save to local file (text, Excel, HTML format) • Variant  user defined set of criteria at selection screen that can be saved and retrieved • Dynamic Selection  to add field(s) as selection criteria • Multiple Selection  to include/exclude certain values from the selection criteria Closing and Reporting
  • 23. 23 • Balance Sheet and Profit & Loss  The format of the financial statements is determined by the Financial Statement Version (FSV) that is defined in the configuration – transaction OB58  Financial Statement Version contains Heading and Sub- heading and GL account range  This is one sample of many reports available GL account range Closing and Reporting (cont.)
  • 24. 24 • Refer to System Walkthrough 2.3 – Reporting in your Faculty Guide. – Display Chart of Accounts (S_ALR_87012326) – GL Account Balance (S_ALR_87012277) – GL Account Line Items (S_ALR_87012282) – Balance Sheet and Profit & Loss (S_ALR_87012284) – Define Financial Statement Version (OB58) *note this is just a sample of reports that are delivered System Walkthrough 2.3 – Reporting
  • 25. 25 • Refer to Exercise 2.3 – Display Chart of Accounts in your Participant Workbook – Your task is to display the chart of accounts Exercise 2.3 – Display Chart of Accounts
  • 26. 26 • Refer to Exercise 2.4 – GL Account Balances Report in your Participant Workbook – Your task is to access the GL Account Balances Report screen Exercise 2.4 – GL Account Balances Report
  • 27. 27 • Refer to Exercise 2.5 – GL Account Balance Display in your Participant Workbook – Your task is to access the GL Account Balance Display screen Exercise 2.5 – GL Account Balance Display
  • 28. 28 • Refer to Exercise 2.6 – GL Account Line Items Report in your Participant Workbook – Your task is to display the GL Account Line Items Report Exercise 2.6 – GL Account Line Items Report
  • 29. 29 • Refer to Exercise 2.7 – Generate Balance Sheet/Profit and Loss Statement in your Participant Workbook – Your task is to run the Balance Sheet/Profit and Loss Statement reports Exercise 2.7 – Generate Balance Sheet/Profit and Loss Statement
  • 30. 30 • Refer to Exercise 2.8 – Leading Ledger & Non- Leading Ledger posting in your Participant Workbook – Your task is to post transactions in all ledgers and local ledgers and display the transactions Exercise 2.8 – Leading Ledger & Non-Leading Ledger posting
  • 31. 31 • Refer to Exercise 2.9 – New GL Reporting versus Classic GL Reporting, in your Participant Workbook – Your task is to run the reports and view the differences in features Exercise 2.9 – New GL Reporting versus Classic GL Reporting
  • 33. 33 Agenda – Day 2 • Review of Day 1 • General Ledger – Period End Closing & Reporting • Bank Accounting – House Bank/s • Accounts Receivable – Key Concepts • Accounts Receivable – Organisation Structure • Accounts Receivable – Master Data • Accounts Receivable – Configuration • Accounts Receivable – Business Transactions • Accounts Receivable – Reporting and Conversion Tip
  • 34. 34 • Each bank that a company uses for incoming and outgoing payments is set up as a house bank and bank account in SAP • Each house bank of a company code is represented by a bank ID in the SAP system, every account at a house bank by an account ID • The house bank account master record contains the house bank ID, unique account number, Bank GL account House Bank Such as: Westpac Bank Account Bank Account House Bank/s & Bank Account
  • 35. 35 House Bank/s & Bank Account (cont.) • The GL account for the specified bank account is to be managed in the same currency as the account at the bank • For domestic banks, you should enter the bank number in the "bank key" field and for foreign banks, you should enter the SWIFT code in this field • An appropriate Bank Account GL Structure must be formed to use the flexibility of SAP • An strategic Bank Account GL structure helps in determining how much confirmed cash, floating cash out, and floating cash in there is on a particular day
  • 36. 36 EFT Clearing Account GL acct # 113102 Check Clearing Account GL acct # 113101 Bank Account (Confirmed Cash) GL acct #113100 Vendor Account 2 Vendor Account 1 Back Account Representation
  • 37. 37 • The house bank master record is created and changed in configuration (SPRO), it can also be changed from the SAP menu (next slide) • The house bank account master record can only be changed from configuration • House bank is dependent on company code • House bank is represented by alphanumeric character whose length can be up to 5 • Lockbox configuration is not required for Australia, 3rd party collect funds and deposit into bank account Configuration – House Bank/s
  • 38. 38 Configuration – House Bank/s (cont.)
  • 39. 39 • The bank master record for Business Partners (Vendors, Customers, Employees) is created and changed from the SAP Menu • The bank master record for Business Partner can also be created while creating vendor and customer record at the time of entering bank details • Bank master records can be created in the Business Partner master record; however, in a live system authorizations should not allow the Business Partner Master Record creator to also create Bank Master Records (separation of duties – Sarbanes Oxley Control) Bank Master Records
  • 41. 41 Bank Accounts • In a house bank we can have number of bank accounts (e.g., current account, foreign exchange account, term deposit account) • Each bank account is identified by a house bank ID and a specific account ID • The GL accounts which needs to be entered in bank account details has always to be a GL account for confirmed cash account not clearing account • While creating GL master record for the confirmed cash account, the house bank ID and account ID needs to be entered in bank details in company code (on the tab Create/Bank /Interest). Relevant to cash flow box should be checked
  • 43. 43 System Walkthrough 2.4 – Display House Bank • Refer to Walkthrough 2.4 – Display House Bank in your Faculty Guide. –Display House Bank
  • 44. 44 System Walkthrough 2.5 – Create House Bank • Refer to Walkthrough 2.5 – Create House Bank in your Participant Workbook. –Create House Bank –Create GL account and assign to new House Bank/Account ID
  • 46. 46 Agenda – Day 2 • Review of Day 1 • General Ledger – Period End Closing & Reporting • Bank Accounting – House Bank/s • Accounts Receivable – Key Concepts • Accounts Receivable – Organisation Structure • Accounts Receivable – Master Data • Accounts Receivable – Configuration • Accounts Receivable – Business Transactions • Accounts Receivable – Reporting and Conversion Tips
  • 47. 47 • Order to Cash Overview • Purpose • Sub Ledger • Customer Master Data • Invoice / Credit Memo • Credit Management • Head Office • Alternate Payer Key Concepts
  • 48. 48 Inventory Sourcing Delivery Billing Sales Order Processing Pre-Sales Activities Decrease Inventory AR Invoice Customer Payment Credit Check Dr. COGS Cr. Material Dr. Customer Cr. Sales FI/CO SD No FI posting Dr. Bank Cr. Customer CO: Profit Centre assignment (default from material being sold) Order to Cash Process Overview
  • 49. 49 • Accounts Receivable records accounting data for all customers who have master data. The accounting data includes: sales, credits, payments, adjustments • Standard Reports provide many views of the Accounts Receivable data for management of the amounts owing. They can be used for day to day reporting and for month end procedures • AR can provide key information to help with Credit Management and liquidity planning, through its link to Cash Management module Accounts Receivable – Purpose
  • 50. 50 • The Accounts Receivable Sub Ledger is made up of the customer accounts • All postings in the Accounts Receivable Sub Ledger are recorded directly in the General Ledger to a reconciliation account. A reconciliation account can only have postings made to it by the sub ledger, no direct postings can be made • The reconciliation account is stored in the customer’s company code master data • A special general ledger indicator is used to update other reconciliation accounts, for down payments, and bills of exchange Sub Ledger
  • 51. 51 • Special GL indicator can be used to record customer transactions to different reconciliation account, such as: – Down payments – Bills of exchange – Guarantees – Reserves for bad debts – Security deposits – Additional transactions can be defined by the user, such as employee advances / loans etc • Posting key for special GL transactions are: – 09 – Debit Customer – 19 – Credit Customer Define the Special GL Indicator in the configuration and specify the indicator upon posting Special GL Indicator
  • 53. 53 • Customer master data (records) are used by both the accounting (FI-AR) and the sales (SD) departments of an organisation • By storing Customer Master Data centrally, it can be accessed throughout the organisation and avoids the need to enter information twice. It also avoids inconsistencies in master data by maintaining it centrally. If the address of one of your customers is changed, for example, you only have to enter this change once, and your accounting and sales departments will always have up-to-date information Customer Master Data
  • 54. 54 • There are 3 views of Customer Master Data: – General data • The general area includes the customer's name, address, language, and telephone data • This data applies to every company code and sales organisation – Company code data • This data is specific to an individual company code. Company code data includes the reconciliation account number, payment terms, and dunning procedure – Sales data • This data is relevant to the sales organisations and distribution channels of your company. Sales data includes data on order processing, shipping, and billing • SD module needs to be implemented for this to be activated Customer Master Data (cont.)
  • 55. 55 • Invoice – Is an accounting document (a request for payment) for goods or services provided to a customer entered via transaction FB70 (or F-22) – Debits the customers account (posting key 01) • Credit Memo – Is an accounting document reducing the amount to be paid by a customer due to the return of goods, dispute with goods or services, etc. entered via transaction FB75 (or F-27) – Credits the customers account (posting key 11) – Invoices and credit memos can also be created automatically based on integration with SD Posting Key Extract Invoice/Credit Memo
  • 56. 56 Credit Management (1 of 3) • Credit management allows a company to minimize credit risk by defining a credit limit for customers – If both Accounts Receivable (FI-AR) and Sales and Distribution (SD) modules are implemented, the system can be customized to check on the customer’s credit limit. This can be done one or multiple points during the Sales and Distribution process (point of order, delivery, goods issue) – If the SAP Accounts Receivable (FI-AR) module is used to manage receivables, but a non-SAP system manages sales and distribution, credit management can be used. When an invoice is posted in Accounts Receivable the system can check whether the amount exceeds the credit limit
  • 57. 57 • Credit management structure includes: – Credit Control Areas: an organisational unit representing the area where customer credit is provided and monitored. The organisational unit can either be a single (de-centralized) or several company codes (centralized), depending on how credit is managed – Risk Category: determines which checks the system should carry out when processing orders in Sales and Distribution (SAP or non-SAP) Credit Management (2 of 3)
  • 58. 58 • Credit management structure also includes: – Credit Representative Groups: credit management employees can be assigned to a credit representative group. The credit representative group can be used as a selection criterion for evaluations and release functions – Customer Group: groups of customers can be defined in accordance with the company’s needs. An example would be to group customers by industry, country, or other criteria that help to carry out credit management more effectively Credit Management (3 of 3)
  • 59. 59 Head Office (1 of 3) • Customers could place orders locally via their branch, but pay invoices centrally from head office. This can be represented with head office and branch accounts. • An invoice can be entered for goods delivered to a branch, but have the system automatically post the invoice to the head office account. The system records the customer account number of the branch in the document. The payment is collected from the head office account. As a result, you can collect payments from several branches in one step.
  • 60. 60 Head Office (2 of 3) • The head office and branch accounts are created, displayed, changed, deleted, and blocked like all other customer master records. • To link a branch account to the head office account, the account number of the head office account is entered in the Head office field in the customer master record (Account Management Tab) of the branch account.
  • 61. 61 • You can only use a customer account as a head office if it is not a one-time account or branch account. • Branch accounts and head office accounts must belong to the same company code. • Dunning is only executed for the head office account. • Credit is maintained at the head office level. • Customer statements are generated at the head office level. Head Office (3 of 3)
  • 62. 62 • An Alternative Payer (customer number) is defined in the master record of the customer who created the invoices. • Automatic payments/receipts are made using the banks of the alternative payer account, rather than the original customer. • The alternative payer must have a customer master record. • Authorization to deduct from the alternative payers account must be received. Alternative Payer (1 of 6)
  • 63. 63 • The alternative payer can be specified in the general and the company code area of the customer master data. – If you specify an alternative payer in the general data, that alternative payer is valid for the customer in all company codes. – If you specify an alternative payer in both areas, the specification in the company code area takes precedence. Alternative Payer (2 of 6)
  • 64. 64 • The payer may need to be entered in the document. In this case, the option can be selected in the general data area. When you enter a document, there is a field on the screen in which you can enter an alternative payer. If this field is selected, the system displays a screen for the payer’s master data. • You can only use a customer account as an alternative payer if it is not a one-time account. Alternative Payer (3 of 6)
  • 65. 65 • Alternative payer and customer accounts do not have to belong to the same company code. • The following business processes are managed at the customer who created the invoices and NOT at the alternative payer level: dunning, credit, customer statements. Alternative Payer (4 of 6)
  • 66. 66 Alternative Payer (5 of 6) Enter Alternative Payer account number Payment document – Alternative Payer details included
  • 67. 67 Alternative Payer (6 of 6) • Note: If the SAP Sales & Distribution Module is implemented, the alternative payer can be handled by the Customer Account Group: Payer. • Other Customer Account Groups can be used for the following SD Partner functions: – Sold-to party – Ship-to party – Payer – Sales prospect – One-time customer
  • 68. 68 Your Experiences • Have you been involved in the implementation of an Accounts Receivable application? • If you have been involved, what were the key challenges?
  • 70. 70 Agenda – Day 2 • Review of Day 1 • General Ledger – Period End Closing & Reporting • Bank Accounting – House Bank/s • Accounts Receivable – Key Concepts • Accounts Receivable – Organisation Structure • Accounts Receivable – Master Data • Accounts Receivable – Configuration • Accounts Receivable – Business Transactions • Accounts Receivable – Reporting and Conversion Tips
  • 71. 71 Organisation Data – Credit Control Area • Credit control area is an organisational unit that represents an area responsible for granting and monitoring credit . • This organisational unit is either a single company code or, if credit control is performed across several company codes, multiple company codes. Credit information can be made available per customer within a credit control area.
  • 72. 72 Organisation Data – Sales Area • Sales Area is a combination of Sales Organisation, Distribution Channel and Division: – Sales Organisation is responsible for selling materials and services – Distribution Channel is a channel through which saleable materials or services reach customers. It includes wholesale, retail, and direct sales. You can assign a distribution channel to one or more sales organisations – Division is an organisational unit based on responsibility for sales or profits from saleable materials or services
  • 73. 73 Organisation Data – Sales Area (cont.) Client 1000 2000 3000 10 20 10 10 01 02 01 02 01 02 01 = Sales area Sales Organization Distribution Channel Division
  • 75. 75 Agenda – Day 2 • Review of Day 1 • General Ledger – Period End Closing & Reporting • Bank Accounting – House Bank/s • Accounts Receivable – Key Concepts • Accounts Receivable – Organisation Structure • Accounts Receivable – Master Data • Accounts Receivable – Configuration • Accounts Receivable – Business Transactions • Accounts Receivable – Reporting and Conversion Tips
  • 76. 76 Customer Master – General Data • This data applies to every sales organisation and company code.
  • 77. 77 Customer Master – Company Code Data • This data is specific to an individual company code.
  • 78. 78 Customer Master – Sales Area Data • This data is specific to a Sales Area and provides details for ordering, shipping and billing.
  • 79. 79 • Why is the customer master data maintained in 3 areas? – In an organisation, there are two company codes that do business with the same customer. The general data, such as the address, is stored in the general area. Both company codes use this data for communication with the customer. Each company code maintains data for financial accounting (such as the reconciliation account) and for their business relationship with the customer (such as payment terms) in their own company code area. The sales area data provides the details for ordering, shipping and billing the customer – The Sales and Distribution (SD) module is required to enter the sales data and to print invoices Customer Master Data (1 of 4)
  • 80. 80 • Examples of how the master data specifications are used: – Values in the master data are default values when you post items to the account; e.g., payment terms are defaulted during document entry – For processing business transactions; e.g., interest calculations, dunning – Account control data, such as the number of the GL reconciliation account, head office – Users can be prevented from accessing an account by setting up authorization groups Customer Master Data (2 of 4)
  • 81. 81 • Examples of how the master data specifications are used (cont.): – For internal management of the account an Accounting clerk can be assigned – For communication with the customer; e.g., the address, telephone and fax numbers, contact personnel – Cash Flow forecasting within the Treasury module uses the Cash Management Group, which defines the type of payer group the customer belongs to Customer Master Data (3 of 4)
  • 82. 82 GL Account: • Reconciliation Account • Groups type of receivables; e.g., domestic, foreign, subsidiaries. • Customer creator must be aware of how to assign the reconciliation account to provide the accurate view of the postings Customer Master Data (4 of 4)
  • 83. 83 • The Accounting Clerk Identification Code is entered in a customer’s master data. • The accounting clerk performs AR finance duties and may also be responsible for debt recovery from the customer. The ID is used to sort dunning. • The Accounting Clerk can also be defined as the Credit Rep Group. Accounting Clerk
  • 84. 84 • The account group is a grouping of properties that controls the creation of master records. • The account group controls the number range for the vendor master records. (Each vendor master is identified with a unique account number.) • Account group also controls if the number range is externally assigned or internally assigned. • Account group controls the field status of the vendor master maintenance – If the field entry is Suppressed/Required/Optional/Display. Customer Master Data – Account Group
  • 85. 85 • Refer to System Walkthrough 2.6 - Configuration in your Faculty Guide. – Define Account groups with Screen Layout (customers) – Create Number Ranges for customer accounts – Assign Number Ranges to customer account groups – Enter Accounting Clerk Identification Codes System Walkthrough 2.6 – Configuration
  • 86. 86 • Refer to System Walkthrough 2.7 - Master Data Maintenance in your Faculty Guide. – Display customer without Sales Org View – Display customer with Sales Org View System Walkthrough 2.7 – Master Data Maintenance
  • 87. 87 • Refer to Exercise 2.10 - Create Customer in your Participant Workbook. − Your first task is to create a customer − Next display the customer Exercise 2.10 – Create Customer
  • 88. 88 • Refer to Exercise 2.11 - Change Customer Record in your Participant Workbook. − Your task is to change the customer record Exercise 2.11 – Change Customer Record
  • 90. 90 Agenda – Day 2 • Review of Day 1 • General Ledger – Period End Closing & Reporting • Bank Accounting – House Bank/s • Accounts Receivable – Key Concepts • Accounts Receivable – Organisation Structure • Accounts Receivable – Master Data • Accounts Receivable – Configuration • Accounts Receivable – Business Transactions • Accounts Receivable – Reporting and Conversion Tips
  • 91. 91 Business Transactions Configuration • We will review the configuration of: – Payment terms – Reason codes – Default accounts assignment – Define tolerances for customers – Dunning – Interest calculation – Credit management
  • 92. 92 Payment Terms • Terms of payment involves discount amount and the related time frame sent to the customer. • The terms of payment configuration is same for both AR and AP. • The same terms of payment can be used for both AR and AP. • Installment payment system can also be defined as Payment Terms.
  • 93. 93 System Walkthrough 2.8 – Payment Terms • Refer to System Walkthrough 2.8 – Payment Terms in your Faculty Guide. −Terms of Payment −Installment Payment Terms
  • 94. 94 Reason Codes • Reason codes are defined to handle the payment differences in the form of: – Residual items – Partial payments – Postings on account • Per reason code, you can determine: – In which company code it is valid – Which correspondence type (payment notice to the customer) is connected to it – Short text and long text of the reason code • You can set the C indicator to charge off the differences for each reason code and D indicator for disputed item.
  • 95. 95 System Walkthrough 2.9 – Reason Codes • Refer to System Walkthrough 2.9 - Reason Codes in your Faculty Guide. –Display the Reason Codes and Payment Differences
  • 96. 96 • Default account assignment is configured for Cash Discount Granted, Exchange Rate Difference, Rounding Difference & Bank Charges (Customers). • For the above default account assignments, the following needs to be done: – Ensure that the GL Account for the above account assignment is created in the Chart of Accounts – Ensure the new accounts are an Expense account, not a Cost of Sales account – The above expenses account is created as cost element in Controlling Area – Default Cost Centre must be set up via transaction OKB9 Default Account Assignment
  • 97. 97 System Walkthrough 2.10 – Default Account Assignment • Refer to System Walkthrough 2.10 – Default Account Assignment in your Faculty Guide. –Define Accounts for Cash Discount Granted (Tcode OBXI) –Define Accounts for Exchange Rate Differences (Tcode OB09) –Define Account for Rounding Differences (Tcode OB00) –Define Accounts for Bank Charges (Customers) (Tcode OBXK)
  • 98. 98 • The tolerances are used for dealing with payment differences and residual items that may arise when payment clearing is carried out. • You specify the tolerances in one or more tolerance groups and assign a tolerance group to each customer/vendor using the master record. • In case of no tolerance: – Ensures payments equate to invoices – Must have manual journals entered to account for the write-off differences – Provides control, as a conscious decision has to be made to allow the customer to underpay Tolerances for Customers
  • 99. 99 • A tolerance group can be set for specific customers. • If a tolerance group is set up, you must also configure OBA4 – Tolerance for Employees (Users) with the same tolerance parameters to authorise them to post the allowable difference Tolerances for Customers (cont.)
  • 100. 100 System Walkthrough 2.11 – Tolerances for Customers • Refer to System Walkthrough 2.11 – Tolerances for Customers in your Faculty Guide. –Define Tolerances for Customer –Define Tolerances Group for Employees –Assign Users to the Tolerance Groups
  • 101. 101 • Dunning – Selects open items that are due – Sends letter/s to customers to remind them to pay • Dunning area – Dunning areas are used if several organisational units are responsible for carrying out dunning within one company code – These organisational units are referred to as dunning areas. The dunning area can correspond to a profit centre, a distribution channel, a sales organisation or a business area Dunning (1 of 3)
  • 102. 102 Dunning (2 of 3) • Dunning procedure –Set of dunning levels with different parameters for each level –A customer is assigned to a dunning procedure in their customer master data • Dunning level –Allows different strength of dunning letters to be sent, which depends on how overdue the invoice is • Dunning letter is created in a form
  • 103. 103 • Dunning run – Calculates overdue status for each invoice – Assigns a dunning level depending on the procedure that has been assigned to a particular customer – Prints out dunning letters that will be addressed to each customer – strength of these dunning letters will be based on the dunning level of the invoice Dunning (3 of 3)
  • 104. 104 Dunning Configuration (1 of 4) • Dunning program configuration is divided into the following categories: – Dunning procedure defines: • The key for the dunning procedure to be used • A description of the dunning procedure • Dunning interval in days • Minimum days in arrear (account) after which a dunning notice will be sent • Grace period per line item • Interest calculation indicator for calculation of dunning interest
  • 105. 105 Dunning Configuration (2 of 4) – Dunning Level: For each dunning procedure define the following under the tab dunning level: • Minimum number of days, referring to the due date of net payment to reach a certain dunning level. • If interest is to be calculated • Print parameters • If you wish to get dunning notice although no further account movement occurred
  • 106. 106 Dunning Configuration (3 of 4) – Charges: For each dunning procedure define the following: • Dunning charges, depending on the dunning level • dunning charges can be either a fixed amount or a percentage of the dunned amount • A minimum amount for the dunning charges can be set
  • 107. 107 Dunning Configuration (4 of 4) – Minimum Amount: For each dunning process define: • Minimum amount or percentage of the overdue items to reach a dunning level. • Minimum amount to be reached in order to calculate interest per dunning level – Dunning Text: For each dunning process, maintain the name of the form that will be used at each level
  • 108. 108 System Walkthrough 2.12 – Dunning Configuration • Refer to System Walkthrough 2.12 – Dunning Configuration in your Faculty Guide. –Display a Dunning Configuration
  • 109. 109 • Does the company calculate interest on overdue payments? – No  This configuration is not required – Yes  Continue • Be aware: setting up the interest calculation in SAP is a complicated process • Define the interest process: – How often is interest calculated? – What is the formula? – What are the journal implications? – Will the interest be recorded against one profit centre or against multiple? Interest Calculation
  • 110. 110 Interest Calculation (cont.) • SAP provides two types of interest calculation: –Balance interest calculation is applied to the entire balance of a GL or customer account, applying a particular interest rate for a specified period of time –Interest on arrear is applied to individual item in accounts receivable or accounts payable. A certain interest rate is applied to the items that are still open or unpaid at a specified date
  • 111. 111 • Refer to System Walkthrough 2.13 – Interest Calculation in your Faculty Guide. –Define interest calculation types –Prepare interest on arrears calculation –Define reference interest rates –Define time based terms –Enter interest values –Calculation of interest on arrears System Walkthrough 2.13 – Interest Calculation
  • 112. 112 Credit Management Configuration • In Credit Management Configuration, we will review the creation of: – Credit Control Areas – Credit Representative Groups – Risk Categories • And we will review Automatic Credit Control, which is configured in the Sales and Distribution Configuration
  • 113. 113 • Credit Control Areas are defined in the Enterprise Structure Configuration and assigned to company codes in the Credit Management Configuration Credit Control Areas 1 2 3
  • 114. 114 System Walkthrough 2.14 – Credit Management • Refer to System Walkthrough 2.14 – Credit Management in your Faculty Guide. –Credit control area
  • 115. 115 • Classifies the risk level of a customer • Risk categories are assigned to each credit control area • Parameters are set based on the risk category and credit control area to set conditions which will block sales to a customer, e.g. number of outstanding invoices; day of oldest open invoice (from document date) Risk Categories
  • 116. 116 • Risk categories are configurable: – Create as many as required – Define the parameters for each risk category and credit control area combination; it is best not to overcomplicate parameters – Category examples: • X01 New Customer: Tighten Parameters • H01 High Risk • M01 Medium Risk • L01 Low Risk: Loosen Parameters Risk Categories (cont.)
  • 117. 117 • What is a credit representative group? – Could be a collective of people or individual clerk – Point of contact between credit department and customer – Manages debt recovery for a specific customer – Credit reps are responsible for collecting monies from customers in their credit rep group Credit Representative Groups
  • 118. 118 • Used in credit management reports – To follow up outstanding amounts – Makes it easier to identify amounts owing and who is responsible for collecting these amounts Credit Representative Groups (cont.)
  • 119. 119 • Automatic Credit Control is defined in the Sales and Distribution Configuration using the combination of the Credit Control Area and Risk Category Automatic Credit Control
  • 121. 121 Agenda – Day 2 • Review of Day 1 • General Ledger – Period End Closing & Reporting • Bank Accounting – House Bank/s • Accounts Receivable – Key Concepts • Accounts Receivable – Organisation Structure • Accounts Receivable – Master Data • Accounts Receivable – Configuration • Accounts Receivable – Business Transactions • Accounts Receivable – Reporting and Conversion Tips
  • 122. 122 Business Transactions – Invoice Press enter to see which fields you have missed entering – a message will appear to advise fields missing An invoice is an accounting document (request for payment) for goods or services provided to a customer.
  • 123. 123 Credit Memo • A credit memo is an accounting document reducing the amount to be paid by a customer due to the return of goods, dispute with goods or services, etc.
  • 124. 124 • Refer to System Walkthrough 2.15 – Customer Invoice in your Faculty Guide. − Customer Invoice − Credit Memo System Walkthrough 2.15 – Customer Invoice
  • 126. 126 System Walkthrough 2.16 – Dunning • Refer to System Walkthrough 2.16 – Dunning in your Faculty Guide. –Dunning procedure (F1500)
  • 127. 127 Exercise 2.12 – Create Invoice with Cash Payment Terms • Refer to Exercise 2.12 - Create Invoice with Cash Payment Terms in your Participant Workbook. –Your task is to create an invoice with cash payment terms
  • 128. 128 Exercise 2.13 – Create Invoice with 30-Day Payment Terms • Refer to Exercise 2.13 - Create Invoice with 30-Day Payment Terms in your Participant Workbook. –Your task is to create an invoice with 30-day payment terms
  • 129. 129 Exercise 2.14 – Reverse an Invoice • Refer to Exercise 2.14 - Reverse an Invoice in your Participant Workbook. –Your task is to reverse an invoice
  • 130. 130 Exercise 2.15 – Execute Dunning Procedure • Refer to Exercise 2.15 – Execute Dunning Procedure in your Participant Workbook. –Your task is to create a dunning run for your customer (refer to Dunning in Configuration section)
  • 131. 131 Exercise 2.16 – Create a Partial Credit Memo • Refer to Exercise 2.16 – Create a Partial Credit Memo in your Participant Workbook. –Your task is to create a Credit Memo for part of the cash payment terms invoice
  • 132. 132 • Payments are entered into SAP using transaction F-28 • Both full and partial payments can be accounted for Enter payment From customer F-28 Fully Paid? Standard Clearing F-28 Required Clearing? Residual Clearing F-28 No No Yes Yes Cash/Cheque Receipt From Customer Partial Clearing F-28 View result FBL5N YCUSTSTAT View result FBL5N YCUSTSTAT View result FBL5N YCUSTSTAT Entering Payments
  • 133. 133 Payment Clearing • An incoming payment should be cleared off against an invoice as soon as possible via F-28 – However, if a follow-up is required, the payment can be cleared later via F-32 • Payments are initially posted to the bank clearing account – When the EBS is loaded, open items in the bank clearing account need to be cleared via transaction F-03 Invoice 1000 1000 Payment Payment 1000 1000 EBS Load EBS Load 1000 Customer Account Bank Clearing Bank Account
  • 134. 134 • Refer to System Walkthrough 2.17 – Payments in your Faculty Guide. – Apply partial payment System Walkthrough 2.17 – Payments
  • 135. 135 • Refer to System Walkthrough 2.18 – Clearing of Open Items in your Faculty Guide. − Clear the open invoice, credit memo and partial payment documents System Walkthrough 2.18 – Clearing of Open Items
  • 136. 136 • Refer to Exercise 2.17 – Apply Incoming Manual Partial Payments in your Participant Workbook. –Your task is to apply incoming manual partial payments Exercise 2.17 – Apply Incoming Manual Partial Payments
  • 137. 137 • Refer to Exercise 2.18 - Clear Open Items in your Participant Workbook. –Your task is to clear open items Exercise 2.18 – Clear Open Items
  • 139. 139 Agenda – Day 2 • Review of Day 1 • General Ledger – Period End Closing & Reporting • Bank Accounting – House Bank/s • Accounts Receivable – Key Concepts • Accounts Receivable – Organisation Structure • Accounts Receivable – Master Data • Accounts Receivable – Configuration • Accounts Receivable – Business Transactions • Accounts Receivable – Reporting and Conversion Tips
  • 140. 140 Customer – Reporting • Key reports used for FI-AR include: – Line Item display of customer accounts – Customer account balances – Due date/Ageing Analysis
  • 141. 141 • Refer to System Walkthrough 2.19 – Reports in your Faculty Guide. − Display reports System Walkthrough 2.19 – Reports
  • 142. 142 • Refer to Exercise 2.19 - Display Account Balances in your Participant Workbook. – Your task is to display and browse account balances Exercise 2.19 – Display Account Balances
  • 143. 143 • Refer to Exercise 2.20 - Browse Account Line Items in your Participant Workbook. – Your task is to Browse Account Line Items Exercise 2.20 – Browse Account Line Items
  • 144. 144 • Refer to Exercise 2.21 – Generate AR Reports in your Participant Workbook. – Your task is to use your customer to execute different Accounts Receivable Reports Exercise 2.21 – Generate AR Reports
  • 145. 145 • If the Sales & Distribution (S&D) module is used, customers will generally be given an SAP-specific customer number (internally assigned) • If a legacy S&D system is used, the number will generally be externally assigned; however, this assignment will depend on where the customer is created (for example, in the legacy system or SAP) – A customer cross reference should be created as part of the conversion process Customer Master Conversion
  • 146. 146 • Cleansing is vital: – Address details need to be validated e.g., post codes and other required address fields as necessary – Confirm all customers to be converted. Usually a legacy system will contain a large number of obsolete or replicated customers which need to be cleansed – Street fields to be used in a consistent manner, which is an important consideration for form design • Determine conversion method – dependent on number of customers and skill level of team Customer Master Conversion (cont.)
  • 147. 147 • A/R open items need to be converted into the SAP system. The aging of converted documents needs to be correct: – Easier to set the payment terms to cash (0 days) – therefore, the baseline date is the due date – More difficult to assign the appropriate payment terms to the document • Conversion data map needs to be created to define which legacy fields will be converted and where they map to in SAP. Data constraints on field lengths and validated fields need to be considered Open Items Conversion
  • 148. 148 • All open items converted must be associated to a valid SAP Customer Master (using criteria listed above) • Following the open item conversion, a follow-up check to confirm that total of A/R open items is equal to value in the legacy system ledger account(s) should be conducted • Ideally, regardless of method for conversion, the number of open items to be converted should be minimized and managed Open Items Conversion (cont.)
  • 150. 150 1. Where are the three views of Customer Master Data? 2. What is the difference between a bank master record, a house bank and a business partner bank master record? 3. How are both sets of data created and changed? 4. Explain how to run the GL Account Balances Report. Knowledge Check
  • 151. 151 End of Day 2 Q & A
  • 152. 152 • General Ledger – Period End Closing & Reporting – Month End Closing – Year End Activity – Reporting • Bank Accounting Concepts and Transactions – House Bank & Bank Accounts – Bank Account Representation in SAP – Bank Master Creation • Bank Key • House Bank • Account ID End of Day 2 Lessons Learned (1 of 5)
  • 153. 153 • Accounts Receivable – Concepts and Organisation Structure – Order to Cash Process – Purpose of Accounts Receivable – Organisation Units and their inter-linkages • SD Organisation Units - Sales Area • Credit Management - Credit Control Area, Risk Category, Credit Representative groups • FI Organisation Units – Company code, Accounting Clerk End of Day 2 Lessons Learned (2 of 5)
  • 154. 154 • Accounts Receivable – Customer Master – Account Groups – Screen layouts, Number Ranges – Alternative Payer – Head office vs. Branch office – Reconciliation Account – Master data - General segment, Company code segment, and Sales Area segment – Master Data Maintenance End of Day 2 Lessons Learned (3 of 5)
  • 155. 155 • Accounts Receivable – Business Transactions – Payment Terms – Account Assignment for Automatic Postings – Dunning Process – Invoice Processing and Payments – Credit management and credit limits for customers • Accounts Receivable – Information System – Customer Balances report – Customer Line item reports – Trial Balance/Aging reports • AR Conversion – Useful Tips End of Day 2 Lessons Learned (4 of 5)
  • 156. 156 • Accounts Receivable – Business Transactions – Payment Terms – Account Assignment for Automatic Postings – Dunning Process – Invoice Processing and Payments End of Day 2 Lessons Learned (5 of 5)

Editor's Notes