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Accounts Payable �Version 1.0�� Unit 1: Introduction

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SAP-ERP

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Course Agenda

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Unit 1: Introduction

Unit 2: Master Data

Unit 3: Invoice and Credit Note Processing

Unit 4: Payments

Unit 5: Inquiries

Unit 6: Reporting

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Course Objectives

At the completion of this course, you will be able to:

Understand the Accounts Payable structure within SAP R/3
Understand the Key Concepts and Functionality within the Accounts Payable module
View Vendor Master Records

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Course Objectives (cont.)

At the completion of this course, you will be able to:

Process Vendor Invoices and Credit Notes
Process Vendor Payments
Perform Vendor Inquiries
Reporting Capabilities

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Accounts Payable Easy Access Screen

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Different SAP R/3

Modules – AP module highlighted

Non-purchase order invoice processing

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Materials Management Module

Purchase Orders and Goods Received are all processed on SAP R/3 through the Material Management module within Logistics

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Purchase orders are created in Purchasing

PO related invoices are processed in Logistic Invoice Verification

Good Receipts are created in Inventory Management

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Key Terms

Company Code
Purchasing Organization
Plant
Document Types
Document Structure
Document Flow
SAP R/3 modules

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Company Code: is maintained for every entity where a set of financial statements is required for external purposes.

Purchasing Organization: within a company code is responsible for all the purchasing activities for that company.

Plant: is the operating area or branch within a company. The plant can be used to subdivide a company into production, procurement, quality, or maintenance.

Postings made in Accounts Payable are simultaneously recorded in the General Ledger where different G/L accounts are updated based on the transaction involved.

Document Structure: is the format in which a transaction is recorded on SAP.

Document Flow: is used to trace transactions through the system. It is possible to trace a material from the PO stage of the process right through to the payment stage of the process.

SAP R/3 Modules: each business function is processed through a different module within SAP R/3, for example - Production Planning, Accounts Payable, Warehouse Management are all different modules.

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A/P Module – Document Types

Document Types: Different document types exist in SAP R/3 to cover different business transactions.
In Financial Accounting, there are different document types for the different transactions executed in each module:

Accounts Payable
Accounts Receivable
General Ledger
Asset Accounting

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A/P Module – Document Types (cont.)

In Materials Management, there are different document types for the different transactions executed for:

Goods Received
Goods Shipped to customers
Purchase order related invoices processed

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Standard Document Types for AP

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AP Document Types

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Each Document Type is also assigned a different number range. This also helps a user to identify the source of an entry into accounts.

For example:

Vendor Invoice Doc type KN = Number Range 0190000000 – 0199999999

Every time a KN document is posted, the next available number in this range will be posted as the document number. When an invoice is posted, the user will always know if the document number starts with 19 it was an invoice posted.

For example:

Vendor Payment Doc type KZ = Number Range 1500000000 – 1599999999

Every time a KZ document is posted, the next available number in this range will be posted as the document number. When an payment is posted, the user will always know if the document number starts with 15 then it was an payment posted.

For example:

Goods Receipt Doc type WE = Number Range 5000000000 – 5099999999

Every time a WE document is posted the next available number in this range will be posted as the document number. When a receipt is posted, the user will always know if the document number starts with 50, then it was a receipt was posted against a PO.

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Document Structure

Documents share a data structure consisting of:

Overview
Header
Items

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Overview Data

Header Data

Item Data

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Financial Document Overview

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Line Item Data

Header Data

Overview Data

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Key Concept Process

Three way match concept

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Represents a manual process outside of LIMS

Represents a process within LIMS

1. Purchase Order

2. Goods Receipt

3 FI documents created to record Dr and Cr entries

3. Invoice Receipt

4. Payment

Two way match concept

1. Purchase Order

2. Invoice Receipt

2 FI documents created to record Dr and Cr entries

3. Approval

obtained

4. Payment

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Accounts Payable SAP R/3 Functionality

Summary of:

Vendor Master Data
Transaction Functionality
Inquiries
Reporting

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Vendor Master Data

A Vendor Account on SAP R/3 is known as a Vendor Master Data Record.
The Vendor Master Record stores all purchasing and finance data for vendor.
A Vendor Master Record must exist on SAP R/3 for a vendor before any business activity can occur for Wyeth.

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Vendor Master Data (cont.)

A Vendor Master Record has three views:

A General Data view which provides information on vendor address, telephone number, etc.
A Company Data view which provides details for vendor payments.
A Purchasing Organization Data view which provides details for creating and managing purchase orders.

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The Vendor Master Record holds all relevant information relating to the vendor.

For example:

The Company Code - each vendor is linked to the company code, i.e. the company which purchases from the vendor.

Purchasing Org - again each vendor is linked to the purchasing, i.e. the purchasing org which purchases from the vendor.

Address, telephone, contact details are all maintained for each vendor.

Payment Terms - details of how the vendor account will be settled each period.

Currency - what currency the vendor will invoice and be paid in is maintained.

Vendor A/C Creation:

Both the Finance and the Purchasing views must be set up before any transaction can be processed for a vendor. It is possible to set up both views at the same time or a user from each department can be responsible for their own view, that is a user from finance will set up the finance views and a user from purchasing can set up the purchasing views.

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SAP R/3 Menu Path for Vendor Master Records

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Vendor Master Records

Transaction for both company code and purchasing views

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Initial Vendor Master Record Screen (FK03)

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Vendor Inquiries and Vendor Account Management

SAP R/3 provides multiple transactions for performing vendor account inquiries.

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You can display:

Vendor Balances
Vendor Line Items

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A/C Inquiries and Management Transactions

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Display Line Items and Balances

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Reporting Functionality

SAP R/3 provides multiple standard Accounts Payable Reports.

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SAP R/3 Standard Reports

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Reporting Functionality

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Additional Wyeth custom reports

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Questions and Answers

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