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TimPengajarSAPSTMIKMikroskil
1
Overview
Introducevendormasterrecord Introducevendormasterrecord
Introducesomeofthedailyactivitiesthatareperformed in
accountspayable(AP),suchascreatinginvoicesandcreditmemos,
creating recurringdocuments,andexecutingtherecurring
documentprogram
Introduce thewaysofprocessingpayments
Introduce theintegrationpoints withmaterialsmanagementand
theorganizationalelementsthatareapplicableto materials theorganizationalelementsthatareapplicableto materials
management
Introduce closingactivitiesnecessary topreparefinancial
statementsinaccountspayable,suchasforeigncurrency valuation
2
Objectives
Aftercompletingthisunit,youllbeableto:
Createalistofvendors
Maintainvendormasterrecordsinaccounting
Describetheroleofanaccountgroup
PostvendorinvoicesandcreditmemosinFI
Createarecurringdocumentandexecutetherecurringentriesprogram
Postamanualoutgoingpaymentandprintacheque
Runtheautomaticpaymentprogram
Checkaccountbalances lineitems anddocuments Checkaccountbalances,lineitems,anddocuments
DescribethemostimportantorganizationalunitsinMaterialManagement
DescribeandtrackthebasicpurchasingprocessinMaterialManagement and
describeitseffectsinFinancialAccounting
Printbalanceconfirmations
Revalueforeigncurrencyopenitems
Regroupaccountspayableaccordingtoduedate
3
Contents
VendorMasterRecords VendorMasterRecords
DailyAccountingTransactionsinAccountsPayable
IntegrationwithMaterialsManagement
ClosingOperationsinAccountsPayable
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LessonOverview
Reviewanexistingvendormasterrecordandcreateanewvendor Reviewanexistingvendormasterrecordandcreateanewvendor
masterrecordintheSAPsystem
Examinehowtheaccount groupcontrolstheappearanceand
numberingofvendormasterrecords
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Objectives
Aftercompletingthislesson,youllbeableto: Aftercompletingthislesson,you llbeableto:
Createalistofvendors
Maintainvendormasterrecordsinaccounting
Describetheroleofanaccountgroup
7
VendorAccount
AswithG/Laccounts,vendoraccountsaremadeupoftwoareas: AswithG/Laccounts,vendoraccountsaremadeupoftwoareas:
Avendoraccountisdefinedforallcompanycodesattheclientlevel.
Generaldata,suchasthevendor'snameandaddress,isstoredhere.
Postingscannotbemadetotheaccountforacompanycodeuntil
company codespecificsettingshavebeencreated.Thesesettingsrefer
onlyto therelevantcompanycodeandincludedetails,suchasagreed
payment conditionsorreconciliationaccount.
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VendorAccountinFinancial
Accounting
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InitialScreentoDisplayAVendor
MasterRecord
10
AccountGroups
Vendoraccountscanbedividedintovariousaccountgroupsinthe g p
samewayas G/Laccounts,sothattheycanbeorganizedandmanaged
moreeasily
However, theaccountgroupcontrolsthescreenlayoutofallareasofthe
vendormaster record,notjustthecompanycodedataasisthecasewithG/L
accountgroups
Theaccountsinanaccountgroupusuallyhavesimilarcharacteristics
For example,user couldhaveoneaccountgroupfordomesticvendors,one
for vendors abroad,oneforaffiliatedvendors,andoneforonetimevendors
Numberrangesareassignedtoaccountgroups Numberrangesareassignedtoaccountgroups
Thesenumberrangesareusually internalwherethesystemassignsuser a
numberwhenuser savethevendormaster record
However,somenumberrangesareexternal
Withexternalnumberranges, user fillinthevendornumbermanuallywhen
creatingthevendormasterrecord
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AccountGroupsforVendors
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LessonOverview
Discussindetaildailytransactionswithaccountspayable (AP) Discussindetaildailytransactionswithaccountspayable (AP)
Explain invoicetransaction
Howto setuptherecurringentryprogram
Study multiplewaystoprocess paymentsinmySAPERPFinancials
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Objectives
Aftercompletingthislesson,youllbeableto: Aftercompletingthislesson,you llbeableto:
PostvendorinvoicesandcreditmemosinFI
Createarecurringdocumentandexecutetherecurringentries
program
Postamanualoutgoingpaymentandprintacheque
Runtheautomaticpaymentprogram
Checkaccountbalances,lineitems,anddocuments Checkaccountbalances,lineitems,anddocuments
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AccountPayableAccounting
Organizationsusesubledgers totrackmoneyowedtoindividual g g y
vendors
Subledgers arenotpartofthegeneralledger,butinsteadare
associatedwithspecial accountsinthegeneralledgerknownas
reconciliationaccounts
Inaccounts payableaccounting,theaccountspayablesubledger
consistsofindividualvendor accounts
Thesubledgeraccountnumberiscreatedwhenthevendormaster
recordiscreated
Thevendormasterrecordandthevendorsubledgeraccount sharethe Thevendormasterrecordandthevendorsubledgeraccount sharethe
sameaccountnumber
Theassociatedreconciliationaccountis ageneralledgeraccountthat
isdesignatedasthereconciliationaccount
The associationbetweenthevendoraccountandthereconciliation
accountis establishedinthedefinitionofthevendormasterrecord
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ScenarioExample
IntheGBIgeneralledger,account#300700,accountspayablereconciliation, isthedesignated
account
ConsiderascenarioinwhichGBI purchasesofficesuppliesfromthreevendors
Eachvendorhasadesignated vendoraccountnumberthatisalsothesubledgeraccountnumber
Thepurchases areasfollows:$2,000fromVendor1,$1,000fromVendor2,and$4,000 fromVendor
3
Further,GBImakesthesepurchasesoncreditandthenpays thevendorsatalaterdateviaacheck
Asillustratedinfigure,Steps13 recordthepurchasesfromeachvendor
Eachpurchaseresultsinadebitto thesuppliesexpenseaccountandacredittotheappropriate
vendoraccount
Postingstothevendoraccountsareautomaticallypostedtothereconciliation account accounts Postingstothevendoraccountsareautomaticallypostedtothereconciliation account,accounts
payablereconciliation,asindicatedbythearrows
Notethat theAPreconciliationaccountdoesnottrackthedetailsofeachtransaction; rather,it
maintainsonlythetotalvalues
Payments,recordedinSteps46, resultinacreditpostingtothebankaccountandadebitposting
totheappropriate vendoraccount
Again,thesedebitpostingsarealsoautomaticallymade tothereconciliationaccount,accounts
payablereconciliation
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ScenarioExample
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Invoice/CreditMemoEntry
User caneasilycreateandpostavendorinvoicesorcreditmemosusing aone
i
y p g
screentransaction
ThistypeofinvoiceentereddirectlyinA/Pisa miscellaneousinvoice,without
referencetoapurchaseorder
TheA/Pentry screenisdividedintothefollowingareas:
Worktemplates
Here,user canselectscreenvariants,accountassignmenttemplates,orheld documentsas
references
Headerandvendordata
Documentheaderandvendorlineitemdataisenteredhere
G/Laccountitems
TheG/Llineitemsforthedocumentareenteredhere TheG/Llineitemsforthedocumentareenteredhere
Informationarea
Thedocumentbalanceandinformationaboutthevendorisdisplayedhere
Thistransactioncanalsobeusedtocreatedocumentsinaforeigncurrency
Theforeigncurrencyamountistranslatedintolocalcurrencyusingdefinedexchange
rates
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EnjoyInvoice/CreditMemoEntry
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EnjoyVendorInvoiceScreen
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AccountAssignment
Whenacompanypurchasesmaterialsforconsumption,the Whenacompanypurchasesmaterialsforconsumption,the
transactionmustidentify theaccountassignmentobjecttobe
chargedforthepurchaseaswellasthe generalledgeraccountsto
bedebitedandcredited
Anaccountassignment objectidentifiesthebearerofthecostof
thepurchaseandistheentityfor whichthematerialswere
purchased
E.g. Whenacompanypurchases officesuppliesforthemarketing
department,itdebitsaconsumption account,suchasthesupplies
expenseaccountinthegeneralledger,andit chargesthemarketing p g g , g g
departmentcostcenterforthepurchase
Acostcenterisacostobjectusedtoaccumulatecostsfora
department
Inthe aboveexample,theaccountassignmentobjectisthecostcenter
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AccountAssignment
Companiesalsousethepurchasingprocesstoacquireassets,such Companiesalsousethepurchasingprocesstoacquireassets,such
ascars,andtoobtain materialsneededtosupportprocessessuch
asproduction,fulfillment, andenterpriseassetmanagementand
projectssuchasconstructinganewfactory
Thespecificaccountingdataneededaredeterminedbythe
account assignmentcategory
Thetypicalaccountassignmentcategoriesare describedbelow
alongwiththeaccountingdataspecifically,theaccount
assignmentobjecttobechargedandthegeneralledgeraccount
numberthat arerequiredforeachcategory
Thelettersinparenthesesarethecodesused inSAPERP
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AccountAssignment
Asset(A) ( )
Acompanyusesthiscategorywhenitacquiresafixed asset,suchasacaror
land
Thevalueof fixedassetsistrackedinseparatesubledgeraccountswith
corresponding assetmasterrecords
Whenassetsarepurchasedusinga purchaseorder, theaccountassignment
objecttobeincludedinthepurchaseorder istheassetmasterrecord
Order (F)
Companiesusethiscategorywhentheypurchasematerials fordifferent
typesoforders
Anexampleofanorderisa productionorderthatwillbeusedtoproduce
anothermaterial
Whenacompanypurchasesmaterialsforanorder,itmustinclude theorder
number(theaccountassignmentobject)andageneral ledgeraccount
numberinthepurchaseorder
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AccountAssignment
CostCenter (K) CostCenter (K)
Whenacompanypurchasesmaterials(e.g. supplies)forconsumption,
thenthepurchaseordermustinclude boththecostcentertobecharged
(theaccountassignmentobject) andtheappropriategeneralledger
expenseaccountnumber(e.g. suppliesexpense)
SalesOrder (C)
Whenthepurchaseisassociatedwithaspecific salesorder(whichispart
ofthefulfillmentprocess),thenthe salesordernumberandageneral
ledgeraccountnumbermustbe provided g p
Project (P)
Whenthepurchaseisrelatedtoaproject,thenthe projectnumberanda
generalledgeraccountnumbermustbe specified
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COAccountAssignmentLogic
Whenenteringanexpenseitemforanoperatingexpense,user Whenenteringanexpenseitemforanoperatingexpense,user
mustalsoenter acostaccountingrelevantassignment,suchasa
costcenterorinternalorder
Thismeansthatwhentheitemisposted,documentsarecreatedin
Management AccountingandAccounting
AprimarycostelementmustexistfortheG/L accountinorderfor
thistohappen
TheManagementAccountingdocumentposts thecosts
correspondingtotheexpensetotheManagementAccounting
b object
User canpostcostsandrevenuesinCOeitherasrealpostingsor
statisticalpostings:
User cansettlerealpostingswithotherCOobjects
Statisticalpostingsareonlyforinformationpurposes
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COAccountAssignmentLogic
Theaccountassignmentobjectitselfcaneitherbearealorastatistical g j
object
For example,aninternalorderisdefinedasrealorstatisticalwhenitis
created
Areal ordercanonlybeexecutedwithrealpostings,andastatistical
orderonlywith statisticalpostings
Costcentersareanexceptiontothis
Acostcenterisalwaysa realobject,butuser canmakestatisticalorreal
postingstothem
TopostcostsinCO,user needtoidentifythecorrespondingrealCO
t i t bj ti th d t(f l account assignmentobjectinthesourcedocument(forexample,a
vendorinvoice)
Only onerealobjectcanbeassignedtoeachdocumentiteminthe
sourcedocument
Additionalstatisticalobjectscanbeenteredorderivedfromthe
system
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COAccountAssignmentLogic
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TheRecurringEntryProgram
User canusetherecurringentryprogramforpostingsthatare User canusetherecurringentryprogramforpostingsthatare
repeatedatregular intervals,suchasrentpaymentsandpayments
offeesandpropertytaxes
With thisprogram,thenecessarydocumentsaregenerated
automatically
Recurringbusinesstransactionsmustbestoredinthesystemas
recurringentry originaldocumentsforthistobepossible
Eachrecurringentryoriginaldocument containsthedateofthe Eachrecurringentryoriginaldocument containsthedateofthe
firstandlastpostings,thefrequencyatwhichpostingshouldbe
made,andthedateofthenextplannedposting.
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TheRecurringEntryProgram
Therecurringentryprogrammustbestartedatregularintervals Therecurringentryprogrammustbestartedatregularintervals
withinaspecified period
Theprogramselectsallrecurringentryoriginaldocumentsinwhich
the dateofthenextpostingfallswithinthespecifiedperiod,and
thengenerates abatchinputsession
Whenthebatchinputsessionisrun,anaccountingdocumentthat
corresponds totheoriginaldocumentisposted,andthedateofthe
nextpostingisupdatedin theoriginalrecurringentrydocument
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TheRecurringEntryProgram
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ElementsofthePayment
Transaction
Allpaymenttransactionsincludetheelementsshowninthefigure Allpaymenttransactionsincludetheelementsshowninthefigure
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OverviewoftheAutomatic
PaymentProgram
Apaymenttransactioncanbecarriedouteithermanuallyor Apaymenttransactioncanbecarriedouteithermanuallyor
automaticallyusing thepaymentprogram
Thestandardsystemcontainscommonpaymentmethodsand
correspondingforms thathavebeendefinedseparatelyforeach
country
Thepaymentprogramwasdevelopedfortheinternational
paymenttransactions betweenvendorsandcustomers
Thisprogramcanbeusedforincomingand outgoingpayments Thisprogramcanbeusedforincomingand outgoingpayments
However,itismorecommonlyusedforoutgoingpayments
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OverviewoftheAutomatic
PaymentProgram
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AutomaticPaymentProgram
Parameters
Automaticpaymentconsistsofseveralsteps Automaticpaymentconsistsofseveralsteps
Thefirststepismaintainingtheparameters
User usetheparameterstodefine whichaccountsanditemsthe
paymentprogramistoincludeintheautomatic paymentrun
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Parameters
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ProposalRun
Thesecondstepofthepaymentprogramistheproposalrun Thesecondstepofthepaymentprogramistheproposalrun
Duringtheproposal run,thesystemdoesthefollowing:
Checkstheaccountsanddocumentsspecifiedintheparametersfordue
items
Groupsitemsdueforpayment
Selectstherelevantpaymentmethods,housebanks,andpartnerbanks
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ProposalRun
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EditProposal
Thethirdstepofthepaymentprograminvolvescheckingand Thethirdstepofthepaymentprograminvolvescheckingand
editingthe paymentproposal
Thisstepcanbeomitted,butuser areadvisedtocheckthat the
dataisaccuratebeforeactuallyrunningthepaymentprogram
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EditProposal
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PaymentRun
Thefourthstepofthepaymentprogramistheactualpaymentrun Thefourthstepofthepaymentprogramistheactualpaymentrun
Duringthepaymentrun,thesystemdoesthefollowing:
Postspaymentdocuments
Clearsopenitems
Preparesdatafortheprintingofpaymentmedia
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PaymentRun
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PrintPaymentMedia
Thefinalstepofthepaymentrunisprinting Thefinalstepofthepaymentrunisprinting
Paymentmediaaregeneratedinthisstep,whichmeansthatone
ofthefollowing occurs:
Paymentmedia,suchascheques,areprinted
IDocsaregeneratedfortheelectronicdatainterface(EDI)
Adatafileiscreatedaspartofthedatamediumexchange
Thesystemcomesstandardwithpaymentmediaprogramsfor
manycountries andmanypaymentmethods. manycountries andmanypaymentmethods.
ThepaymentprogramRFFOD__S isactivatedinordertoprintcheques
inGermany
IntheUSA,theprogramRFFOUS_Cisused
Notethatthepaymentprogramnamecontainsthecodefor thecountry
andforthepaymentmethod
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PrintPaymentMedia
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AutomaticPaymentProgram
User canskipthepaymentproposalandexecutethepaymentrun User canskipthepaymentproposalandexecutethepaymentrun
directly
Inthis case,businesstransactionsthatbalancetheopenitemsare
posteddirectlyafter enteringtheparameters
Also,user cancombinethepaymentrunstepwiththe payment
mediastepbyenteringavariantforthepaymentmediaprogramin
the Printout/datamediumtabbeforerunningthepayment
program
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LessonOverview
Showhowasimplepurchaseorderiscreated Showhowasimplepurchaseorderiscreated
Dealwiththegoodsreceiptandtheinvoiceverificationin the
MaterialsManagement
DiscussintegrationwithFinancial Accountingforgoodsreceiptand
invoiceverificationinthepurchasingprocess
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Objectives
Aftercompletingthislesson,youllbeableto: Aftercompletingthislesson,you llbeableto:
DescribethemostimportantorganizationalunitsinMaterial
Management
DescribeandtrackthebasicpurchasingprocessinMaterial
Management anddescribeitseffectsinFinancialAccounting
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Plant
Thecentralorganizationalobjectinlogisticsistheplant Thecentralorganizationalobjectinlogisticsistheplant
Aplantisanoperating areaorbranchwithinacompany
Aplantcanbeacentraldeliverywarehouse, aregionalsalesoffice,
amanufacturingfacility,acorporateheadquarters,ora
maintenanceplant
Aplantmustbeassignedtoasinglecompanycode
However, oneormoreplantscanbeassignedtothesamecompanycode
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Plant
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Purchasing
Purchasingfortheplantsiscompletedbythepurchasing Purchasingfortheplantsiscompletedbythepurchasing
organization
A purchasingorganizationisanorganizationalelementthat
negotiatesconditionsof purchasewithvendorsforoneormore
plants
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Purchasing
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PurchasingDataintheVendor
MasterRecord
InorderfortheprocurementprocesstobeusedinMaterials p p
Management foravendor,thevendormasterrecordofthatvendor
musthaveathirdpart: thepurchasingdata
Thepurchasingdataisspecifictoasinglepurchasing organization,just
likethecompanycodedataofthemasterrecordisspecifictoa single
companycode
InthesamewaythatseveralCompanyCodesegmentsof thevendor
masterrecordcanexist,therecanbeseveralpurchasedatasegments
ofthevendormasterrecord
h d d h h f f Everypurchasedatasegmentpresentsdata,which arespecificfor
exactlyonepurchaseorganization.
User canaccesspurchasingdataofvendormasterrecordsinaccounts
payable accountingwiththetransactionCentralmaintenance
(TransactioncodeXK01 toXK03)
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PurchasingDataintheVendor
MasterRecord
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VendorMasterRecord
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VendorMasterRecord
Generaldata includethevendorsname,address,andcommunication information
h h df b suchasphoneandfaxnumbers
Thesedataaredefinedattheclient levelandareconsistentacrossallcompanycodesand
purchasingorganizations intheenterprise(client)
Generaldataarecommontothepurchasing andaccountingdepartmentsandcanbe
maintainedbyeitherdepartment
Accountingdata includetaxrelateddata,bankdata,andpaymentterms and
methods
Thesedataaredefinedatthecompanycodelevel and arerelevanttoallpurchasing
transactionsinthecompanycode
Theaccounting departmentwilltypicallycompletethissegmentofthevendormaster
Accountingdatamustalsospecifythereconciliationaccountinthegeneral ledger
Avendoraccountis a subledgeraccount andthatthereconciliation accountidentifies theaccounts
bl h l l d d h h d
g
payableaccountin thegeneralledgerassociatedwiththevendor
If thevendor supplies multiple companies (company codes)within theenterprise, then thedata very likely
willvary foreachcompany
Thereconciliation accountwillbedifferentif eachcompany uses a differentchartof accounts andgeneral
ledgeraccounts
Bankdataandpaymenttermsmayvaryaswell
Thus, accounting data are maintainedseparately foreachcompany codewithwhichthevendor had
dealings
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VendorMasterRecord
Purchasingdata includevarioustermsrelatedtodetermining Purchasingdata includevarioustermsrelatedtodetermining
prices,creatingandcommunicatingpurchaseorders,verifying
invoices, andotherstepsinvolvedinexecutingpurchaseswiththe
vendor
Thepurchasing departmentwilltypicallycompletethissegment
Purchasingdata aredefinedatthepurchasingorganizationalleveland
areapplicableonly tothatorganization
fanenterprisehasmultiplepurchasingorganizations thatdealwiththe
vendor,thenitmustmaintainseparatedataforeachone p
Forexample,deliveryandpaymenttermsmayvaryfordifferent
purchasing organizations
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ProcurementCycle
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ProcurementCycle
Demanddetermination: e a d dete at o
Thedepartmentresponsiblecanregisterarequirement formaterials
manuallyviaapurchaseordertoPurchasing
Determiningthesourceofsupply:
Thepurchaserresponsibleissupported bythesystemindetermining
possiblesourcesofsupply
Onepossibilityfor determiningthesourceofsupplyiscreatingqueries
andsubsequentlyentering thequotations
Furthermore,user canaccesspurchaseordersandconditionsthat
alreadyexistinthesystem alreadyexistinthesystem
Supplierselection:
Comparingthepricesinthedifferentquotationsmakes selecting
supplierseasier
Lettersofrejectioncanbesentautomatically
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ProcurementCycle
Purchaseorderhandling: g
Whencreatingpurchaseorders,thesystemprovides user intheentryprocess
Purchaseordermonitoring:
Thepurchasercanmonitortheprocessingstatus ofthepurchaseorderinthe
system
Forexample,hecandeterminewhetherthe goodsortheinvoicehavebeen
receivedforthecorrespondingpurchaseorder item
Dunningprocessesarealsosupported
Goodsreceipt:
Thesystemcheckstheamountofgoodsreceivedagainstthe purchaseorder
quantity quantity
Invoiceverification:
Thevendorinvoicesarecheckedtoseeiftheaccounting andthecontentare
correct
Paymentprocessing:
ThevendorpaymentisusuallydoneintheFinancial Accounting
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PostingProcurementTransactions
Thethreestepverification,commonlyreferredtoasthethreeway
f
p , y y
match,is thestandardprocedureforpostingprocurement
transactionsinMM
The procedurecontainsthreesteps:
Purchaseorder:
CreateapurchaseorderinMaterialsManagement
Donotmakeanypostingsin FinancialAccounting
Goodsreceipt:
Toupdatethereceiptofinventoryorconsumablematerial, generateamaterial
documentinMaterialsManagement(MM)
Atthesame time,createadocumentinFinancialAccounting(FI)thatpoststhevalue
f th d t th h di t d bit dth d i t/i i of thegoodstothemerchandiseaccountasadebitandthegoodsreceipt/invoice
receipttotheclearingaccount(GR/IR)asacreditinthegeneralledger
Invoiceverification:
PostavendorinvoiceinMaterialsManagement(MM) usinginvoiceverification
Thisautomaticallygeneratesadocumentin FinancialAccounting(FI)
Theaccountingdocumentcontainstheinvoice amountthatgetspostedtotheGR/IR
account(debit)andthevendoraccount (credit)
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PostingProcurementTransactions
Thelasttwostepscanbecompletedinreverseorder,dependingon Thelasttwostepscanbecompletedinreverseorder,dependingon
theorder thegoodsandtheinvoicearereceived
Thegoodsreceipt/invoice receiptclearingaccountensuresthat
goodswere receivedforeachinvoice,andviceversa
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ThreeStepVerification(Standard)
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InvoiceVerification
Whenacompanyreceivesavendorinvoice,itverifiesthatthe invoiceisaccurate Whenacompanyreceivesavendorinvoice,itverifiesthatthe invoiceisaccurate
beforeitmakespayment
Themostcommonmethod ofinvoiceverificationisathreewaymatchbetweenthe
purchaseorder,the goodsreceiptordeliverydocument,andtheinvoice
Theobjectiveistoensure thatthequantitiesandpriceinallthreedocumentsare
consistent
Analternative isatwowaymatchbetweenapurchaseorderandthegoodsreceipt
document
Thismethodisnotverycommon,anditrequiresahighdegreeoftrust and
cooperationbetweenpartners
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DataNeededforInvoice
Verification
Thedataobtainedfromtheinvoiceincludethevendornumber, invoicedate,invoice Thedataobtainedfromtheinvoiceincludethevendornumber, invoicedate,invoice
quantity,andinvoiceamount
Thedatafromthepurchase orderincludevendornumber,materials,quantities,and
price
Finally, thematerialsandquantitiesreceivedareobtainedfromthematerial
document createdduringthegoodsreceiptstep
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DataNeededforInvoice
Verification
Thedataobtainedfromtheinvoiceincludethevendornumber, invoicedate,invoice Thedataobtainedfromtheinvoiceincludethevendornumber, invoicedate,invoice
quantity,andinvoiceamount
Thedatafromthepurchase orderincludevendornumber,materials,quantities,and
price
Finally, thematerialsandquantitiesreceivedareobtainedfromthematerial
document createdduringthegoodsreceiptstep
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TasksWithinInvoiceVerification
Tocompletethisstep,theuserwillprovidethedatafromtheinvoice(vendor, date, p p, p ( , ,
andamount)andthepurchaseordernumber
Thesystemwillthen retrievealltheneededdatafromthepurchaseorder(vendor,
materials, quantities,andprice)
Itwillalsoretrievethegoodsreceiptdataforthepurchase order
Theuserwillverifythatthedataarecorrectand,iftheyare,will approvetheinvoice
Occasionally,therewillbediscrepanciesamongthethree setsofdata
Forexample,thequantitydeliveredorpricemayvarysomewhat
Whetherthesediscrepanciesareacceptablewilldependontheorganizations purchasingand Whetherthesediscrepanciesareacceptablewilldependontheorganization s purchasingand
accountingpolicies,whicharespecifiedinthematerialmaster orothermasterdatainthe
formofover andundertolerances
Ifthediscrepancies arewithintolerances,thentheinvoiceisapprovedforpayment
Ifnot, thentheinvoicewillbeblocked,andfurtheractionfromtheaccountingor
purchasingdepartmentwillberequiredbeforeitcanbereleased
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OutcomesfromInvoice
Verification
Invoiceverificationhasanimpactonthegeneral ledger
E.g.GBIplacedapurchaseorderfor500tshirtsfromSpyGear.TheMiamiplantreceived
theSpyGear shipmentof5boxesof100tshirts(500total).SpyGearsentGBIaninvoice
for500tshirts.Further,thepriceinthepurchaseorderandinvoicearethe same.Thus,
GBIcanmakeathreewaymatchbetweenthe500unitsitordered for$15each,the500
unitsitreceived,andthe500unitsitwasinvoicedfor $15each
Thenextfigureillustratesthedataforthe example
Specifically,a debitof$7,500ispostedtotheGR/IRaccount,andthevendoraccountis creditedby
thesameamount
Becausethevendoraccountisasubledger account,anautomaticcreditpostingisalsomadetothe
correspondingreconciliation accountinthegeneralledgertheaccountspayablereconciliation
account
Acorrespondingfinancialaccountingdocumentiscreated
In addition aninvoicedocumentiscreated In addition,aninvoicedocumentiscreated
Thepurchaseorderhistoryisalsoupdated,andalinktotheinvoice documentisadded
Finally,iftheinvoicepriceisdifferentfromtheprice inthepurchaseorder,thenthematerialmaster
mustbeupdatedtoreflect thisdiscrepancy,ifthemovingaveragepriceisusedforpricecontrol
Recall thatwhenagoodsreceiptisrecorded,thequantity,value,andmovingaverage priceare
updatedinthematerialmaster
Whenaninvoiceisreceived andthepriceisdifferentfromtheonelistedinthepurchaseorder,the
material valueandmovingaveragepricemustbeadjustedtoreflectthenew values
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FinancialImpactofInvoice
Verification
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PaymentProcessing
Payment istriggeredbythereceiptand verificationofaninvoice Payment istriggeredbythereceiptand verificationofaninvoice
Paymentscanbemademanuallyorautomaticallyviaapayment
program
Typically,anorganizationwillhaveanumberofinvoicestopay,and
the mostcommonmethodistoexecuteapaymentprogram
periodically,suchas dailyorweekly
Theprogramwillretrieveallauthorizedinvoicesoveraspecified
timeframeandautomaticallycreatepayments
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DataNeededforVendorPayment
Datafrom theinvoiceincludethedate,thevendornumber,andtheinvoice , ,
amount
In addition,paymentterms,method,andaddressareobtainedfromthe
vendor master
Thedatesoftheinvoicesarecomparedwiththepaymenttermsand thedate
ofthenextscheduledrunofthepaymentprograminordertodetermine which
invoicesaredueforpayment
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TaskswithinVendorPayment
Processingpaymentinvolvesseveralsteps:selectingapaymentmethodand abank,deciding
whichinvoicesarereadyforpayment calculatingpayment amounts postingthepayment whichinvoicesarereadyforpayment,calculatingpayment amounts,postingthepayment
documents,andprintingthepaymentmedium
Whenmakingpaymentsmanually,theuserwillselectthepaymentmethod andthebankand
willprovidethevendornumberandtheamountofthepayment
Thesystemwillthendisplayalistofopeninvoicesforthatvendor
The userwillnextselecttheinvoicesthataretobepaid
Anyapplicablediscounts basedonpaymenttermsarethenapplied
Forexample, if thepaymenttermis2%/10 Net30 andpaymentisbeingmadewithinthe10days
specifiedinthe terms,thesystemwillapplya2%discount
Oncethepaymentispostedin thegeneralledger,theactualpaymentcanbesent
If i d l i ll h ill i ll d h Ifpaymentismadeelectronically,thesystemwillautomaticallysendthepayment
Ifitistobemadeviaa printedcheck,theuserwillprintandsendthechecktothevendor
Ifthecompanyhasanautomatedpaymentprogram,thentheprogramwillretrieveandprocess
alloftheinvoicesthataredueforpaymentusingthe parametersspecifiedinthepayment
program
Userstypicallybecomeinvolved onlyifthereareexceptionsthatrequirespecialresolution
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OutcomesfromVendorPayment
Oneobviousoutcomeofthisstepispaymenttothevendor,either Oneobviousoutcomeofthisstepispaymenttothevendor,either
electronically orviaacheck
Appropriategeneralledgeraccountsarealsoupdated anda
correspondingfinancialaccountingdocumentis created
Thebankaccountiscreditedbytheamountof thepayment,andthe
vendoraccountisdebited,asistheassociatedaccounts payable
reconciliationaccount
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FinancialImpactofVendor
Payment
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PurchaseOrder
Apurchaseorderisacommunicationsenttoa vendorinwhichacompany Apurchaseorderisacommunicationsenttoa vendorinwhichacompany
commitstopurchasingthespecifiedmaterials underthestatedterms
Apurchaseorderistypicallycreatedwithreference toarequisition,an
RFQ,aquotation,orapreviouslycreatedpurchaseorder
Whenreference documentsareusedtocreateapurchaseorder,then
muchofthenecessary dataiscopiedfromthesedocuments
Inaddition,apurchaseordercanbecreated withoutreferencetoany
document
Inthiscase,allthenecessarydataare enteredmanually
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DatainAPurchaseOrder
Apurchaseorderincludesdatafromavarietyofsources p y
Besidesthesourcedocuments,datafromseveralmasterrecords,suchas material
master,vendormaster,inforecords,andconditions,arealsoincluded
Inaddition,datafromspecificagreementsandcontractswiththeselectedvendor
canbeincorporated
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DatainAPurchaseOrder
Mostofthedatainapurchaserequisitionareincludedin the Mostofthedatainapurchaserequisitionareincludedin the
purchaseorder
Inaddition,thepurchaseorderwillcontainotherdata depending
onhowtheorderiscreatedandwhichreferencedocumentsare
used
E.g.Materialcharacteristicssuchasweightareincludedfromthe
materialmaster.Vendordata,suchascommunicationmethod,contact
person, andaddress,areincludedfromthevendormasterorquotation.
Pricingdata, paymentterms,andIncotermsareincludedfromthe
quotation,purchasing inforecord,otherconditionrecords,orspecific
contractsandagreements withvendors,dependingonhowtheprocess
isconfiguredateachcompany.
Ifthenecessarydataarenotavailablefromareferencedocument,
then theusermustprovidethisinformationmanuallywhenheor
sheiscreatingthe purchaseorder
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PurchaseOrderScreen
ThePurchaseOrderScreenhasseveralsubdivisions: ThePurchaseOrderScreenhasseveralsubdivisions:
typeofdocumentandvendor
headerdata
positiondetails
itemdetail
Theheaderincludesdatasuchasthepurchaseordernumber,vendor,
currency,dates,andpayment terms
Thesedataapplytotheentiredocument,includingalllineitems
Theitemdetailssectionincludesdataspecifictoeachiteminthepurchase e te deta s sect o c udes data spec c to eac te t e pu c ase
order,suchasthematerialnumber,description,quantity,deliverydate,
and price
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PurchaseOrderScreen
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LessonOverview
Learnhowtorunbalanceconfirmationsforvendors Learnhowtorunbalanceconfirmationsforvendors
Describe theforeigncurrencyvaluationprogramforopenvendor
items
Learn functionforRegroupingreceivables andpayablestogroup
accountspayableonthebalancesheetbased ontheirremaining
life
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Objectives
Aftercompletingthislesson,youllbeableto: Aftercompletingthislesson,you llbeableto:
Printbalanceconfirmations
Revalueforeigncurrencyopenitems
Regroupaccountspayableaccordingtoduedate
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AccountsPayableClosing
Operations
Yearendclosingcanbedividedintotwomainsections: g
Legalrequirements(proceduresrequiredbythegovernmentauthorities)
Technicalandorganizationalrequirements(proceduresthataretechnically
requiredorneededtosupporttheaccountingorganization)
AC010 onlyfocuseson thelegalrequirements
Atthebeginningofthefiscalyear,thebalancecarryforwardprogram
isrun, carryingforwardthebalancesofthevendoraccountstothenext
fiscalyear
Thepostingperiodsoftheoldfiscalyearareblockedandthespecial
periodsfor closingpostingsforfiscalyearendadjustmentsareopened p g p g y j p
Afterwards,thebalanceswithselectedvendorsareconfirmed,the
foreigncurrency documentsarevaluated,andtheaccountspayable
areregroupedaccordingto remaininglife(requiredonlyincertain
countries)
Oncecomplete,thespecialperiodscanbeclosed
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AccountsPayableClosing
Operations
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BalanceConfirmations
Theprogramforcreatingbalanceconfirmationsalsocreatesreply Theprogramforcreatingbalanceconfirmationsalsocreatesreply
requestsfora freelydefinablenumberofvendors,areconciliation
list,andaresultstable
The balanceconfirmationsandreplyrequestsaresenttothe
vendors;thelistsare usedasacontrolmeasure
Thevendorscheckthebalanceinformationtheyreceiveandsend
theirreplies tothecontrolcenterauditdepartment,which
comparesthereplieswiththe reconciliationlistandentersthe
resultsintheresultstable
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BalanceConfirmations
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ForeignCurrencyValuation
Aforeigncurrencyvaluationisnecessaryifvendoraccountscontains g y y
open itemsinaforeigncurrency
Theamountsoftheseopenitemsweretranslatedinto thelocal
currencyatthetimetheywereenteredusingtheexchangeratewhich
wasvalidonthepostingdate
Theexchangerateisprobablydifferentatthetimeofclosing,and
openitemsneed tobevaluatedagain
Aprogramvaluatestheopenitemsusingthenewexchange rateand
entersthevaluationdifferenceinthevaluatedlineitems
Italsocreates thevaluationpostings:
Debit:Expensefromforeign currencyvaluation;Credit:Balancesheet
adjustmentaccount
Debit:Balancesheetadjustmentaccount;Credit:Revenuefromforeign
currencyvaluation
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ForeignCurrencyValuation
Avaluationcan notbemadebypostingtothepayableaccount, Avaluationcan notbemadebypostingtothepayableaccount,
sincereconciliation accountscannotbedirectlypostedto
Forthisreason,postingsappearinan adjustmentaccount,whichis
displayedinthebalancesheetitemoftheassociated reconciliation
account
Avaluationmethoddetermineshowtheindividuallineitemsare
valuated
This hastobesetupinconjunctionwiththecountryspecificvaluation
regulations regulations
It defines,forexample,whetherthelowestvalueprinciple,thestrict
lowestvalue principle,orageneralprinciple(alsowithrevenuefromthe
valuation)istobe usedforvaluation
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ForeignCurrencyValuation
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RegroupingAccountsPayable
Accountspayableandreceivablehavetobelistedseparatelyinthe Accountspayableandreceivablehavetobelistedseparatelyinthe
balancesheet
Sinceitispossibleforsomevendorstohaveadebitbalance,these
accountsneed tobechangedtovendorswithadebitbalanceprior
tocreatingthefinancial statements
Inmanycountries,itisalsonecessarytogroupaccountspayablein
thebalance sheetbasedontheirremaininglife
Bothregroupingsarecarriedoutusingaspecialprogram Bothregroupingsarecarriedoutusingaspecialprogram
Atthesametime,these regroupingsareremovedonthefirstday
ofthenextperiod,sinceregroupings arenotnecessaryfordaily
processing
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RegroupingAccountsPayable
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RegroupingAccountsPayable
Thediagramshowshowreceivableswithlongremainingterms Thediagramshowshowreceivableswithlongremainingterms
werepostedto adjustmentaccountsseparately,sothatthe
balancesheetcouldbeprepared
Additionally,vendorswithadebitbalanceareregrouped
Anadjustmentaccount isusedastheoffsettingaccounthereas
well,sinceadjustmentscannotbeposted directlytoa
reconciliationaccount
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Note
Theforeigncurrencyvaluation,aswellastheregrouping,canbe Theforeigncurrencyvaluation,aswellastheregrouping,canbe
completedindifferentwaystomeetvariouslegalrequirements
The resultsarethenpostedtovariousaccountsthatareusedbydifferent
financialstatementversions
Theregroupingprogramisalsousedwhenthereconciliation
accountofavendorhasbeenchangedduringtheyear
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