CONFIGURATION OF ACCOUNTS PAYABLE

1. Creation of vendor account group: OBD3

2. Creation of vendor number range: XKN1
3. creation of vendor number range to Account Group: OBAS
4. Define tolerance groups for vendor: OBA3
5. Creation of vendor Master: XK01

Creation of vendor account group:

TCODE: OBD3.

In vendor account group we cans se the field status to the account

groups

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Creation of vendor master:

The creation of the new vendor master consist of two phases:-

1. The purchasing department will create the necessary purchasing

data and block the vendor for sales. After qualification process
the vendor is (if approved) unblocked.

2. then the finance department is informed about the new vendor

master and a responsible person will enter the financial data in
the vendor master (e.g. Reconciliation GL account). This phase is
done per company code.

Transaction codes:

1. Vendor Master Creation: XK01

2. Vendor master change: XK02
3. Vendor Master Display: XK03

Vendor Master Creation

Transaction Code: XK01

 Go to Tcode: XK01
 Give company code:
 give account group:
 enter
 give title
 give country
 enter
enter
 give reconciliation account
 give cash Management group
 enter
 give payment terms
 save

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Change of vendor master: XK02
Display of vendor master: XK03

Screen of XK02 AND XK03

SEGMENTS IN VENDOR MASTER:

GENERAL DATA
COMPANY CODE DATA
PURCHASING ORGANIZATION DATA

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Cash Management Group:

In customer/vendor master records, you need to enter the cash

management groups “ to enable the system to transfer data between
customers/vendor accounts and the liquidity forecast.

Cash management groups helps to differentiate customer/vendors

based on certain characteristics such as cash discount and credit
ratings.

[] Clearing with customer:

Using this indicator, during the automatic payment transaction,

clearing made is made with the corresponding customer account.

Procedure:

To use this function in automatic payment transaction you to

configure:-

1. Enter the “CUSTOMER ACCOUNT NUMBER” in “VENDOR MASTER

RECORD”
2. enter the “VENDOR ACCOUNT NUMBER “ In “CUSTOMER MASTER
RECORD”
3. Select the Indicator [] clearing with vendor in customer
master record.

Payment terms:

Transaction code: OBB8

The payment term represents the typical agreements you have with
customers and vendors, which defines how amount will be paid for, the
length of time between base line date and due date, and whether
any cash discounts apply.

 We enter payment terms in the master record of customers and

vendors.

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[] Check Double Invoice

Using [] Check Double Invoice indicator the system checks, whether

the invoice is already entered, if not system process the invoice. Other
wise system display the message “ Invoice already entered”

Payment methods:

Payment method is a method that specifies “how payment is to

made”

Ex:
1. check
2. bills of exchange
3. bank transfer etc..

Alternative Payee:

A vendor may request that payment be made to another party, or

another address. The new payment recipient is known as the
alternative payee.

Payment Block:

Using this field, we can block all invoices for this vendor from being
paid automatically by the payment program.

Ex:
1. = - free for payment
2. P – Payment request
3. R – Invoice verification
4. V - Payment clearing.

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[] Individual payment

Using this indicator, every customer/vendor open items is paid

separately during the automatic payment transactions.

 that means that open items are not grouped together for payment.

Difference between FK01 AND XK01?

1. FK01 is used for maintaining the vendor details at the company

code level & for general data

XK01 Is used for maintaining the vendor details at the company

purchasing org level and general data.

2. using FK01 we can create vendor for the whole company

together.

Using XK01 we can create vendors for each purchasing

organization of the company individual.

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Vendor Invoice Transaction codes:

1. vendor invoice posting: F-43

2. vendor invoice posting with Debit & Credit indicator: FB60
3. Vendor balance display: FK10N
4. vendor line item display: FBL1N
5. Vendor Payment: F-53
6. Vendor Payment through Check: F-58

Purchasing invoice posting: F-43

 Go to Code: F-43
 Give document date:
 Give posting date
 Give document type
 Give period
 Give company code
 Give currency
 Give Posting key: as 31 (vendor credit)
 Give account: as vendor:
 Enter
 Give amount
 Give business area
 Give baseline date
 Give text:
 Give posting key: as 40 (Gl debit)
 Give account as: as Inventory raw material
 Enter
 Give amount: as *
 Give Text: as +
 Give Business Area:
 Simulate and Save

ENTRY:

Inventory Raw material A/C DR

To Vendor Account.

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7. vendor invoice posting with Debit & Credit indicator: FB60

 Fill all the required fields in the above screen simulate and save

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Vendor balance display: FK10N

 Go to Tcode: FK10N
 Give vendor:
 Company code:
 Give Fiscal year:

 Execute

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Vendor line item display: FBL1N

 Go to Tcode: FBL1N
 Give G/L account
 Give company code:
 Execute

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Vendor Payment: F-53

 Go to Tcode: F-53
 Give Document Date:
 Give Posting Date:
 Give Document type:
 Give Period
 Give company code
 Give Currency
 give account: as Bank account
 Give amount
 Give value date
 Give Text
 give account as : Vendor

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 Click on PROCESS OPEN ITEM BUTTON

SIMULATE AND SAVE

ENTRY:

VENDOR A/C DR
TO BANK A/C

VALUE DATE:

A value date is used as an average of the number of days it takes

for payment to clear the bank

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 Partial and Residual Payment:

Partial Payment:

When we make a partial payment against an invoice, the system

leaves original invoice amount and creates a new line item for the
incoming payment.

Note: it keeps both open items and clear items in the system until
entire payment for invoice is made

How to make partial payment

Ex:-
1. Make purchase invoice posting for Rs.1000 through F-43

2. Make vendor payment through F-53

 Fill all required fields in first screen ( note: in first we give

amount as 500)
 Enter
 Click on “PARTIAL PAYMENT” TAB
 Give payment amount as: 500
 simulate and save

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 Go to Tcode : FBL1N To see vendor open items:

 give vendor
 give company code
 execute

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Residual Payment:

When we make a residual payment against an invoice, the system

clears the original invoice with the incoming amount and creates a new
open line item for the remaining outstanding amount.

How to make the residual payment:

Ex:-
3. Make purchase invoice posting for Rs.1000 through F-43

4. Make vendor payment through F-53

 Fill all required fields in first screen ( note: in first we give

amount as 500)
 Enter
 Click on “Residual PAYMENT” TAB
 Give Residual item amount as: (-)500
 Simulate and double click on line item and change the text
 Save

 Go to Tcode : FBL1N To see vendor open items:

 Give vendor
 Give company code
 Execute

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ADVANCE PAYMENT TO VENDOR

CONFIGURATION:

1. Creation of GL Master = “Advance to vendor” : FS00

Account group: current assets

Balance sheet account
Reconciliation: Vendor

2. Link between sundry creditor and advance to vendor: OBYR

Double click on A or down payment on current assets

Give the chart of accounts
Enter
Reconciliation account :Sundry creditors GL account
Special GL account : advance to vendor GL account
Select save button or Ctrl+S

3. Advance Payment posting: F-48

Entry:

Vendor a/c Dr
To Bank a/c

4. Purchase invoice posting: F-43

Entry:

Inventory Raw material A/c

To Vendor A/c

5. Clear vendor down payment : F-54

(in this transaction code system transfer down payment from

special GL to Normal GL)

Entry:

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 6. Clear Vendor Open items: F-44

Entry:

Posting keys used in vendor advance payment:

1. 29 – special GL debit – vendor

2. 39 - special GL credit – Vendor
3. 26 – payment difference debit –vendor
4. 36 – payment difference credit – vendor

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 APP (AUTOMATIC PAYMENT PROGRAM)

Automatic payment program is used for vendor and customer payment

processing.

Transaction codes:

1. Configuration : FBZP
2. APP Run: F150

CONFIGURATION OF APP:

Transaction codes: FBZP

 In transaction code FBZP the system contains 6 buttons

1. All company codes

2. paying company codes
3. payment method country
4. payment method in company code
5. bank determination
6. House bank

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 1. All company codes:

 New entries

Give company code

 Give paying company code
 Save

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2. Paying company code

Here we can give minimum amount for incoming paying, minimum

amount for outgoing payment and forms.

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 3. Payment methods in country:

Country payment methods specify which payment methods( checks,

wire, ACH, Etc) can be used by company codes in a specific country.

The country payment method configuration specifies the general

control parameters for a payment method.

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4, Payment methods in company code

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[] Payment per due day

Activate this field if you want to group together items by payment

date. This features means that only items with the same due date for
vendor will be grouped together for payment. Normally, all items,
regardless of due date for vendors, are grouped together.

The functionality of this field is better explained in the following

example, in which “SKF COMPANY” has six individual line items with
vendor A

DUE DATE AMOUNT PAYMENT

GROUPING
03/02/2013 500 1
19/02/2013 200 3
03/02/2013 700 1
04/02/2013 876 2
03/02/2013 589 1
19/02/2013 250 3

If the payment per due day functionality was activated, there would be
three separate payments to vendor A because six line items are due
on three separate days.

Payment1 (03/02/2013 due date) would in amount Rs. 1789

Payment2 (04/02/2013 due date) would be in the amount of Rs. 876

Payment3 (19/02/203 due date) would be in the amount of Rs.450

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 5. Bank Determination

Bank determination is used to configure the accounts that are to be

used by the house banks you just set up for payment method bank
selection.

 Select company code

 Double click on Ranking Order folder

 Give payment method

 Give currency
 Give rank order
 Give house bank
 Save

 back

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 Select company code
 Double click on Bank accounts folder
 Give house bank
 Give payment method
 Give currency
 Give account ID
 Give Bank sub account
 Save

Bank Sub account:

Enter the G/L account to which the payment posting for the bank
account is to be made. This account should be the clearing account
that should be used by payment method for which you are using the
account.

Value dates:

A value date is used as an average of the number of days it takes for

a payment to clear the bank.

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6. House Banks

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Sending company code:

Sending company code is the company code that is known to the

business partner.

Use:

When making cross company code payments, you can specify the
sending company code. as well as paying company code.

Paying company code:

Paying company code is the one which pays for the open items.

House Banks:

House bank is the bank which your company maintains a bank account
are referred to as house banks.

 Each house bank in a company code is represented in SAP system

by a “BANK ID” and each account maintained with a house bank is
represented by an “Account ID”

Ranking Order:

The ranking order determines which bank should be selected for the
given payment method, if the other form of bank selection fails.

SWIFT Code:

Society for world wide inter bank financial telecommunication

 SWIFT code is used in International payment transactions.

IBAN :

International Bank account number

 Mostly IBAN is used for foreign currency payments.

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Account ID

Each account is maintained with a house bank is represented by an

account Id

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AUTOMATIC PAYMENT PROGRAM PROCESSING

TRANSACTION CODE: F110

 In transaction code F110 THE System have 5 tabs.

1. Status
2. Parameters
3. Free Selection
4. Additional Log
5. Print/data Medium.

FIELDS AND USEAGE OF EACH TAB

1. Status

The status of the payment run is displayed on the status tab.

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 2. Parameters

Fields:

1. Posting date
2. Documents enter Upto
3. Customer items due by
4. company codes
5. Payment methods
6. Next payment date.

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Free Selection

Free Selection tab is used for validate fields.

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Additional log

Required logging types:

1. Due date check

2. Payment Method selection in all cases
3. Payment method selection if not successful
4. Line items of the payment documents.

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Printout/Data medium

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STEPS IN APP

1. Go to Tcode: F110
2. Give run date
3. Give identification
4. Click on Parameters tab
5. Give posting date
6. Give Docs entered upto
7. Give company code
8. Give payment methods
9. Give Next Payment date
10. Give Vendor
11. Click on PRINT OUT/DATA MEDIUM TAB
12. Give variant
13. Save
14. Click on status tab
15. Click on “Proposal button”
16. Select [] Start Immediately
17. Enter
18. Click on status button continuously (upto proposal
created)
19. Click on “PAYMENT RUN BUTTON”
20. Enter
21. Click on “Status” Button upto Payment run has been
created
22. Click on “Print out” Button
23. Change the Job name
24. Enter
25. Goto Transaction code: SP01
26. Give Spool Number
27. Execute
28. check the output.

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Run Date:

The Run Date is used toe identify the parameters and is the date on
which the program is to re run.

The program can also be run, how ever, at an earlier or later date.

Identification:

Identification is used to differentiate several runs with same key date.

Posting date:

Date under which payment document is entered in financial accounting

Docs.entered Upto:

The date up until which open items are to be included in processing

Customer items due by:

Date by which an open customer items must be due for it. To be

included in the payment run.

[] Single Payment

If this indicator set, every customer/vendor open item is paid

separately during automatic payment transactions. This means that
open items are not grouped together for payment.

Value date

A value date is used as an average of the number of days it takes for a

payment to clear the bank.

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Next payment date:

The next payment date is used in APP to recognize the items that are
to be cleared while performing the payment run.

The items which are due before the next payment date, the current
payment run will pay them.

Ex:-

20.1.2013 this date total due – Rs.500000

if you run APP on 15.1.2013 and given the next payment date
20.1.2013 the system will take Rs.500000

Note:
Due dates will set based on payment terms.

Transaction code : OBB8 (PAYMENT TERMS)

[] start immediatly

When you set this flag. The program starts immediately

Proposal:

Proposal is a list of business partners who have open items.

Variant
1. what is the purpose of variant creation in APP? As inputs
changes frequently for APP?

Variant is used to mention payment methods, house banks, check

lots etc..

If we running APP on the basis of these conditions the check will

create.

 you change the variant conditions at the time of APP run also.
In Print out/Data medium tab you can see maintain variant
button. There you can change the existing variant conditions.

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How to configure variant for APP ?

For creating variant for a program first you have to identify the
program assigned to a “ Payment method in country” through
FBZP and use Transaction code SE38 for maintaining the variant

 Go to Se38
 Give Program Name
 Execute
 Fill required fields and
 Save the variant

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HOW TO BLOCK A INVOICE IN APP

1. In APP after creating proposal

2. Click on Create Proposal button
3. select all accounting clerk button
4. enter
5. select the line item ( which you want to block)
6. click on “CHOOSE BUTTON”
7. Click on “Block all” button
8. Give payment block as: A
9. Enter
10. Save
11. go back
12. then continue APP Process
13. system clear all the invoices except blocked invoice

VENDOR ADVANCE THROGH APP

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