Accounts Receivable in SAP FICO

Accounts Receivable

Define Customer Account Groups and Number ranges
Define Customer Tolerance
Creation of GL Reconciliation Accounts
Creation of Customer Master Records
Post Invoice
Customer Receipt Posting
Bill of Exchange
Dunning
Business Process b/w SD and FI Modules

Customer Account Groups

Definition:
The account group is a classifying feature within customer master records. The account group determines:

o in which number range the customer account number should be;
o whether the number is assigned by the user or by the system;
o which specifications are necessary or possible in the master record.


Define Customer Account Groups
Menu Path: IMG – Financial Accounting – Accounts Receivable & Accounts Payable – Customer Accounts –Master Data – Preparation for creating Customer Master Data – Define Account groups with Screen Layout
T Code : OBD2



Steps:
Click ‘New Entries’
1. Enter 4 Digit Code
2. Enter Name of the Group
3. SAVE the settings

Number Ranges for Customer Account Groups

Definition:

Identifies a number range interval within an object or sub object.

A unique number is assigned to each business partner master record. You can use this
number to access the master record, or to refer to the business partner when processing
business transactions.

A number range can be valid for more than one account group.

You can use the number range to assign different numbers to a head office and subsidiaries.
The number for a business partner master record can be assigned in one of the following
ways:

Externally: You assign the number. In this case, you define a number range that allows for
alphanumerical number assignment. The system checks whether the number you enter is
unique and within the number range defined by the account group.

Internally: The system assigns a consecutive number automatically from a number range
defined by the account group.


Create Number Ranges for Vendor Account Groups
Menu Path: IMG – Financial Accounting – Accounts Receivable & Accounts Payable – Customer Accounts –Master Data – Preparation for creating Customer Master Data – Create Number range for Customer account groups
T Code : XDN1


Steps:
1. Click ‘Change Interval’
2. Click ‘Insert Interval’
3. Enter Sl No.
4. Enter ‘From Number’
5. Enter ‘To Number’
6. Select this box, If youwant External numbering
7. Save the settings



Assign Number Ranges to Vendor Account Groups

Menu Path: IMG – Financial Accounting – Accounts Receivable & Accounts Payable – Customer Accounts –Master Data – Preparation for creating Customer Master Data – Assign Number range for Customer account groups
T Code : SPRO

Steps:
1. Click ‘Position’
2. Enter A/c group
3. Enter Number range
4. Save the settings

Customer Tolerance Group

Definition:

Freely definable group code for customers and vendors, or G/L accounts. Tolerance groups are unique within a company code.

Each tolerance group contains settings that affect cash discount and payment difference processing. These settings become effective during payment entry.

You can use the tolerance level to set a percentage or absolute tolerated difference between the transmitted value and the open value. If the difference exceeds the tolerance limit, a new open item is created. The system compares the value transmitted with the value that is still
open in the internal invoice for the delivery. You can set tolerance limits at delivery and/or item level (material.) If the tolerance limit is not violated, no new open item is created.


Define Vendor Tolerance Group
Menu Path: IMG – Financial Accounting – Accounts Receivable & Accounts Payable – Business Transactions –Open Item Clearing – Clearing Differences - Define Tolerances for Customers / Vendors
T Code : OBA3

Steps:
1. Enter Co. Code
2. Enter Group name
3. Enter Amount
4. Enter Percentage
5. SAVE the settings

Customer Recon Account

Definition:

The reconciliation account ensures the integration of a Sub ledger account into the general ledger.

When you post items to a subsidiary ledger, the system automatically posts the same data to the general ledger. Each subsidiary ledger has one or more reconciliation accounts in the general ledger.

We can’t use reconciliation account for direct posting

Create GL A/c for Customer Recon Account (Step 1)
Menu Path: Easy Access – Accounting – Financial Accounting – General Ledger - Master Records –Individual Processing – Create Centrally
T Code : FS00


Steps:
1. Enter GL A/c Code
2. Enter Co. Code
3. Select A/c group
4. Select P&L or B/S
5. Enter Short Text
6. Enter Long Text
7. Click ‘Control Data’



Create GL A/c for Customer Recon Account (Step 2)
Menu Path: Easy Access – Accounting – Financial Accounting – General Ledger - Master Records –Individual Processing – Create Centrally
T Code : FS00


Steps:
1. Enter Currency
2. Select Line Item
3. Enter Sort Key
4. Select Recon A/c (If necessary)
5. Click ‘Create/Bank/Interest’



Create GL A/c for Customer Recon Account (Step 3)
Menu Path: Easy Access – Accounting – Financial Accounting – General Ledger - Master Records –Individual Processing – Create Centrally
T Code : FS00

Steps:
1. Enter Field Status group
2. SAVE the settings


Segment wise fields in Customer Master Creation

1. General Data:


Address
Communication
Control
Marketing
Payment Transactions
Unloading Points
Contact person
Foreign Trade

2. Company Code Data:

Account management
Payment Transactions
Correspondence
Insurance
Withholding Tax data

3. Sales Data:

Purchasing Data
Partner Usage
Add. Purchase Data

Create Customer Master Records (Step 1)
Menu Path: Easy Access – Accounting – Financial Accounting – Accounts Receivable – Master Records - Create
T Code : FD01
Steps:
1. Enter Co. Code
2. Enter Group name
3. Click ‘Execute’


Create Customer Master Records (Step 2)
Menu Path: Easy Access – Accounting – Financial Accounting – Accounts Receivable – Master Records - Create
T Code : FD01



Steps:
1. Select Title
2. Enter Vendor Name
3. Enter Search term
4. Enter Address
5. Enter Country Code
6. Enter language
7. Click ‘Control Data’


Create Customer Master Records (Step 3)
Menu Path: Easy Access – Accounting – Financial Accounting – Accounts Receivable – Master Records - Create
T Code : FD01


Steps:
1. If the Customer is also a Vendor then enter Vendor Code
2. Click ‘Pmt transactions'


Create Customer Master Records (Step 4)
Menu Path: Easy Access – Accounting – Financial Accounting – Accounts Receivable – Master Records - Create
T Code : FD01


Steps:
1. Enter Bank Details
2. Click ‘Marketing’


Create Customer Master Records (Step 5)
Menu Path: Easy Access – Accounting – Financial Accounting – Accounts Receivable – Master Records - Create
T Code : FD01


Steps:
1. Enter required fields
2. Click ‘Unloading points’


Create Customer Master Records (Step 6)
Menu Path: Easy Access – Accounting – Financial Accounting – Accounts Receivable – Master Records - Create
T Code : FD01


Steps:
1. Enter required fields
2. Click ‘Export data’

Create Customer Master Records (Step 7)
Menu Path: Easy Access – Accounting – Financial Accounting – Accounts Receivable – Master Records - Create
T Code : FD01


Steps:
1. Enter required fields
2. Click ‘Contact person’

Create Customer Master Records (Step 8)
Menu Path: Easy Access – Accounting – Financial Accounting – Accounts Receivable – Master Records - Create
T Code : FD01


Steps:
1. Enter required fields
2. Click ‘Co. code data’


Create Customer Master Records (Step 9)
Menu Path: Easy Access – Accounting – Financial Accounting – Accounts Receivable – Master Records - Create
T Code : FD01


Steps:
1. Enter ‘Recon A/c’
2. Click ‘Pmt transactions’


Create Customer Master Records (Step 10)
Menu Path: Easy Access – Accounting – Financial Accounting – Accounts Receivable – Master Records - Create
T Code : FD01


Steps:
1. Enter ‘Pmt terms’
2. Enter Tolerance group
3. Click ‘Correspondance’


Create Customer Master Records (Step 11)
Menu Path: Easy Access – Accounting – Financial Accounting – Accounts Receivable – Master Records - Create
T Code : FD01


Steps:
1. Enter ‘Dunning procedure’
2. Click ‘Insurance’

Create Customer Master Records (Step 12)
Menu Path: Easy Access – Accounting – Financial Accounting – Accounts Receivable – Master Records - Create
T Code : FD01


Steps:
1. Enter ‘Insurance details’
2. SAVE the settings

Create Customer Master Records (Step 13)
Menu Path: Easy Access – Accounting – Financial Accounting – Accounts Receivable – Master Records - Create
T Code : FD01

Steps:
1. Message will appear along with SAP generated internal Customer Number

Payment Terms for vendor

Definition:

Key for defining payment terms composed of cash discount percentages and payment periods.

It is used in sales orders, purchase orders, and invoices. Terms of payment provide information for:

o Cash management
o Dunning procedures
o Payment transactions

Define Payment Terms for vendor
Menu Path: IMG – Financial Accounting – Accounts Receivable & Accounts Payable – Business Transactions –Outgoing Invoice/Credit memo – Maintain Terms of Payment
T Code : OBB8

Steps:
1. Enter 4 digit Code
2. Select Vendor and Customer
3. Enter Percentage
4. Enter No. of days
5. Select, if interest calculation is required
6. SAVE the settings



Assign Payment Terms to Customer Master
Menu Path: Easy Access – Accounting – Financial Accounting – Accounts Receivable – Master Records - Change
T Code : FD02

Steps:
1. Enter Customer Code
2. Enter Co. code
3. Click ‘Execute’
4. Click ‘Pmt transaction’ in Co. code data
5. Enter Pmt Terms’
6. SAVE the settings

Alternative Recon Account

Definition:

The reconciliation account in G/L accounting is the account which is updated parallel to the sub ledger account for normal postings (for example, invoice or payment).

For special postings (for example, down payment or bill of exchange), this account is replaced by another account (for example, 'down payments received' instead of 'receivables').

The replacement takes place due to the special G/L indicator which you must specify for these types of postings.

Define alternative recon a/c for Down Payments
Menu Path: IMG – Financial Accounting – Accounts Receivable & Accounts Payable – Business Transactions – Down payment received – Define alternative recon a/c for Customer Down payments
T Code : OBXR

Steps:
1. Double click ‘A’
2. Enter Chart of Accounts
3. Enter Customer ReconGL A/c (S.Drs)
4. Enter Advance from Customers GL A/c
5. SAVE the settings

Automatic Posting

Definition:

When you post special G/L transactions, the system generates automatic postings.

To make automatic postings, the system requires specifications on the accounts to post to and the posting keys to use.

This information is also already defined in the standard system. You need only make changes if you do not use the standard chart of accounts or if you want to use other account numbers, posting keys or account determination rules. You must also decide which automatic postings you want to have carried out.

Assign Automatic Posting
Menu Path:

T Code : FBKP
Steps:
1. Click ‘Automatic postings’
2. Click ‘Cash disc. And pmt differences’
3. Click ‘Cash disc. Exp’
4. Enter Chart of A/c
5. Click ‘Save’ button
5. Enter GL A/c
6. SAVE the settings

Dunning Procedure

Definition:

The process of automatically notifying and requesting payment from customers with past due invoices.

A pre-defined procedure specifying how customers or vendors are dunned.

For each procedure, the user defines

o Number of dunning levels
o Dunning frequency
o Amount limits
o Texts for the dunning notices

Dunning (Reminder)

1. Dunning Area
2. Dunning Procedure
3. Dunning Levels
4. Dunning Text
5. Dunning Charges
6. Minimum Amount for Dunning
7. Dunning Forms

Assign Dunning Procedure to Customer

Define Dunning Area
Menu Path: IMG – Financial Accounting – Accounts Receivable & Accounts Payable – Business Transactions –Dunning – Basic settings for dunning – Define Dunning Area
T Code : OB61

Steps:
Click ‘New Entries’
1. Enter ‘Co. Code’
2. Enter ‘Dunning Area’
3. Enter ‘Text’
4. SAVE the settings



Define Dunning Procedure (Step 1)
Menu Path: IMG – Financial Accounting – Accounts Receivable & Accounts Payable – Business Transactions –Dunning – Dunning Procedure - Define Dunning Procedure
T Code : OB61


Steps:
Click ‘New Procedure’
1. Enter ‘Dunn. procedure’
2. Enter ‘Procedure Name’
3. Enter ‘Dunning Interval’
4. Enter ‘Dunning levels’
5. Enter ‘Min days’
6. Enter ‘Interest Indicator
7. Select ‘Std transaction dunning’
8. Enter ‘Ref Dunning procedure for Texts’
9. Click ‘Dunning Levels’




Define Dunning Procedure (Step 2)
Menu Path: IMG – Financial Accounting – Accounts Receivable & Accounts Payable – Business Transactions – Dunning – Dunning Procedure - Define Dunning Procedure
T Code : OB61

Steps:
1. Select ‘Calculate interest’ fields
2. Click ‘Back’ Arrow


Define Dunning Procedure (Step 3)
Menu Path: IMG – Financial Accounting – Accounts Receivable & Accounts Payable – Business Transactions – Dunning – Dunning Procedure - Define Dunning Procedure
T Code : OB61

Steps:
- Click ‘Charges’
- Enter ‘Currency’
1. Enter ‘Dunning levels’
2. Enter ‘Dunning Charges’
3. Click ‘Back’ Arrow



Define Dunning Procedure (Step 4)
Menu Path: IMG – Financial Accounting – Accounts Receivable & Accounts Payable – Business Transactions –Dunning – Dunning Procedure - Define Dunning Procedure
T Code : OB61

Steps:
- Click ‘Min Amounts’
- Enter ‘Currency’
1. Enter ‘Dunning levels’
2. Enter ‘Min Amount’
3. Click ‘Back’ Arrow



Define Dunning Procedure (Step 5)
Menu Path: IMG – Financial Accounting – Accounts Receivable & Accounts Payable – Business Transactions –Dunning – Dunning Procedure - Define Dunning Procedure
T Code : OB61

Steps:
- Click ‘Dunning Text’
- Enter ‘Co. Code’
- Click ‘New Co. code’
- Enter ‘Co. Code’
1. Select ‘Dunning by dunning area’
2. Select ‘Separate notice per dunning level’
3. SAVE the settings



Define Dunning Procedure (Step 6)
Menu Path: IMG – Financial Accounting – Accounts Receivable & Accounts Payable – Business Transactions – Dunning – Dunning Procedure - Define Dunning Procedure
T Code : OB61

Steps:
- Click ‘Dunning Text’
- Enter ‘Co. Code’
1. Enter ‘Dunning levels’
2. Enter ‘Dunning Forms’
3. Click ‘Back’ arrow
- SAVE the settings



Assign Dunning Procedure to Customer Master
Menu Path: Easy Access – Accounting – Financial Accounting – Accounts Receivable – Master Records - Change
T Code : FD02

Steps:
- Enter Customer Code
- Enter Co. Code
- Click ‘Execute’
1. Click ‘Co. Code data’
2. Click ‘Correspondence’
3. Enter ‘Dunning Procedure’
4. SAVE the settings

Bill of Exchange

Definition:

Bills of exchange are handled as special G/L transactions in the SAP System. These transactions are thus maintained independently of other transactions in the subsidiary ledger and are posted to a special G/L account in the general ledger. This affords you an overview of bills of exchange receivable and bills of exchange payable at any stage.

Transfer postings are not usually necessary to display these items on the balance sheet.


Define Alternative Recon A/c for Bill of Exchange
Menu Path: IMG – Financial Accounting – Bank Accounting - Business Transactions – Bill of Exchange Transactions –Bill of Exchange Receivable – Post Bill of Exchange receivable – Define Alternative recon a/c for Bill of Exchange
T Code : OBYN

Steps:
- Double click ‘W’ - BoE
- Enter ‘Chart of A/c’
1. Enter ‘S.Drs Recon GL A/c’
2. Enter ‘Sp GL ‘Bill of Exchange A/c’
3. SAVE the settings

Define Bank Sub-Account

Menu Path: IMG – Financial Accounting – Bank Accounting - Business Transactions – Bill of Exchange Transactions – Bill of Exchange Receivable – Post Bill of Exchange receivable at Bank – Define Bank Sub Account
T Code : OBYK

Steps:
- Click ‘New Entries’
1. Enter ‘Chart of A/c’
2. Enter ‘Bank Gl A/c’
3. Enter ‘Usage’
4. Enter ‘Sp GL code’
5. Enter ‘S.Drs GL Code’
6. Enter ‘Bills Disc GL’
7. SAVE the settings


GL Master Records to be created in AR

ASSETS

Debtors (Recon) A/c
Bill of Exchange (Recon) A/c

INCOME

Sales Accounts

LIABILITIES

Advance from Customers
Bills Discounting (Automatic)

EXPENSES

Cash Discount Allowed
Bank Charges

Configurations testing – End user part

Post Sales Invoice
Post Receipt from Customers
Advance receipt posting
Post Bill of Exchange
Post Bills Discounting
Dunning Run


Customer Invoice Posting
Menu Path: Easy Access – Accounting – Financial Accounting – Accounts Receivable – Document Entry - Invoice
T Code : FB70

Steps:
1. Enter Customer Code,
Invoice date, Posting date.
2. Enter ‘Amount’
3. Enter ‘Text’
4. Enter ‘GL Code’
5. Select Dr / Cr
6. Enter ‘Amount’
7. Simulate and Post the document



Customer Receipt Posting
Menu Path: Easy Access – Accounting – Financial Accounting – Accounts Receivable – Document Entry – Incoming payment
T Code : F-28


Steps:
1. Enter Doc date, post date, Doc type, Period Company code and Currency
2. Enter ‘Bank GL A/c’
3. Enter ‘Amount’
4. Enter ‘Customer Code’
5. Click ‘Process open Items’
6. Select ‘Invoice’
7. Simulate and Post


Customer Down Payment Posting

Menu Path: Easy Access – Accounting – Financial Accounting – Accounts Receivable – Document Entry –Down payment – Down payment
T Code : F-29


Steps:
1. Enter Doc date, post date, Doc type, Period Company code and Currency
2. Enter ‘Customer Code’
3. Enter ‘Sp GL indicator’
4. Enter ‘Bank GL A/c’
5. Enter ‘Amount’
6. Press ‘Enter’
7. Enter ‘Amount’
8. Post the document


Post Bill of Exchange (Step 1)

Menu Path: Easy Access – Accounting – Financial Accounting – Accounts Receivable – Document Entry –Bill of Exchange – Payment
T Code : F-36


Steps:
1. Enter Doc date, post date, Doc type, Period Company code and Currency
2. Select ‘Incoming pmt’
3. Enter ‘Post key’
4. Enter ‘Customer Code’
5. Enter ‘Spl GL indicator’
6. Press ‘Enter’


Post Bill of Exchange (Step 2)

Menu Path: Easy Access – Accounting – Financial Accounting – Accounts Receivable – Document Entry – Bill of Exchange – Payment
T Code : F-36


Steps:
1. Enter Doc date, post date, Doc type, Period Company code and Currency
2. Select ‘Incoming pmt’
3. Enter ‘Post key’
4. Enter ‘Customer Code’
5. Enter ‘Spl GL indicator’
6. Press ‘Enter’

Post Bills Discounting (Step 1)

Menu Path: Easy Access – Accounting – Financial Accounting – Accounts Receivable – Document Entry –Bill of Exchange – Discounting
T Code : F-33


Steps:
1. Enter Doc date, post date, Doc type, Period Company code and Currency
2. Select ‘Usage’
3. Enter ‘Bank GL code’
4. Enter ‘Amount’
5. Enter ‘Post key’ (40)
6. Enter ‘Bank Charge GL’
- Press ‘Enter’

Post Bills Discounting (Step 2)
Menu Path: Easy Access – Accounting – Financial Accounting – Accounts Receivable – Document Entry –Bill of Exchange – Discounting
T Code : F-33


Steps:
1. Enter ‘Amount’
2. Click ‘Select bill of exchange’


Post Bills Discounting (Step 3)
Menu Path: Easy Access – Accounting – Financial Accounting – Accounts Receivable – Document Entry –Bill of Exchange – Discounting
T Code : F-33


Steps:
1. Enter Bill of Exchange Doc No.
2. SAVE the document

Customer Receipt Posting

1. Receipt after Due date (F-28)
2. Receipt before Due date (F-28)
3. Advance Receipt (F-29)