Accounts Receivable-I r1

Accounts Receivable [FI-AR] A COMPLETE GUIDE TO
ACCOUNTS RECEIVABLE
PART-I INCLUDES
DEFINATIONS, CUSTOMIZATION STEPS, USER MANUAL TRANSACTION CODES, FAQS
Prepared by S. N. Padhi, ACA Reviewed by: Experienced Consultants

Copyright 2006 www. surya-padhi.net.
Declaration This document is drawn, based upon certain assumption and based upon certain circumstances. This merely reveals the concepts of Internal order customization, planning, budgeting, actual posting and settlement. This document gives only an overview may or may not coincide with others requirement
All rights are reserved. No part of this publication may be reproduced or stored in any retrieval system, or transmitted in any form or by any means electronic or mechanical including photo copying, recording without permission in writing from me
Page 1 of 75 Copyright 2006 www.surya-padhi.net Updated on May 4, 2006
Accounts Receivable [FI-AR]
Before going ahead the customization of Accounts receivable, ensure that we have properly customized the enterprise structure. FI ES is the prerequisites for this customization. To learn how to customize, FI Enterprise structure, refer my eBook on A COMPLETE GUIDE TO ENTERISE STRUCTURE. This eBook is a free downloadable from my website www.suryapadhi.net
This eBook is dedicated to my beloved wife Mrs. Sharmistha Padhi

Features of this eBook
Customization based on SAP 4.7 EE version of IDEA. This document drawn is based upon experienced consultants advice and guidance. The content of this document is prepared keeping in mind the requirement of new entrants to SAP FICO Module. In configuration steps , screen shots has been provided for easy understanding of configuration steps. Every efforts has been made to cover all configuration steps of this SAP FI-AR sub module
INDEX Glossary: ............................................................................................................................... 5 1.1 Customer Account Groups:........................................................................................... 5 1.2 Dunning: ....................................................................................................................... 5 1.3 Dunning Procedures...................................................................................................... 5 1.4 Dunning level................................................................................................................ 5 1.5 Dunning areas: .............................................................................................................. 6 1.6 Open Item Management:............................................................................................... 6 1.7 Grace Days:................................................................................................................... 6 1.8 Reason Codes:............................................................................................................... 6 1.9 Noted Items:.................................................................................................................. 6 1.10 Statistical Posting:......................................................................................................... 6 2 Customization Steps.............................................................................................................. 7 2.1 Customer Master........................................................................................................... 7 2.1.1 Define Account Groups with Screen Layout (Customers) OBD2..................... 7 2.1.2 Create Number Ranges for Customer Accounts XDN1 .................................. 10 2.1.3 Assign Number Ranges to Customer Account Groups - OBXR ........................ 11 2.2 Business Transaction- Outgoing Invoices: ................................................................. 12 2.2.1 Maintain Terms of Payment OBB8 ................................................................. 12 2.2.2 Define Terms of Payment for Installment Payments OBB9............................ 16 2.2.3 Define Cash Discount Base for Outgoing Invoices OB70............................... 16 2.3 Business Transaction Incoming Payments Global Setting ...................................... 17 2.3.1 Define Accounts for Cash Discount Granted OBX1 ....................................... 17 2.3.2 Define Accounts for Overpayments/Underpayments - OBXL........................... 18 2.3.3 Define Reason Codes for Overpayments/Underpayments - OBBE ................... 20 2.3.4 Define Accounts for Payment Differences OBXL ............................................. 22 2.4 Business Transaction Manual Incoming Payments ................................................. 23 2.4.1 Define Tolerance Groups for Employees OBA4 ............................................. 23 2.4.2 Define Tolerances (Customers) OBA3............................................................ 23 2.5 Business Transaction Automatic Incoming Payments - FBZP................................ 27 2.5.1 Set Up All Company Codes for Payment Transactions:..................................... 27 2.5.2 Set Up Paying Company Codes for Payment Transactions:............................... 29 2.5.3 Set Up Payment Methods per Country for Payment Transactions ..................... 30 2.5.4 Set Up Payment Methods per Company Code for Payment Transactions ......... 30 2.5.5 Set Up Bank Determination for Payment Transactions:..................................... 31 2.6 Business Transaction Dunning ................................................................................ 31 2.6.1 Define Dunning Areas OB61........................................................................... 31 2.6.2 Define Dunning Keys OB17............................................................................ 32 2.6.3 Define Dunning Block Reasons OB18 ............................................................ 33 2.6.4 Define Dunning Procedures - FBMP.................................................................. 33 2.7 Business Transaction Down Payment Received...................................................... 41 2.7.1 Define Reconciliation Accounts for Customer Down Payments:....................... 41 2.8 Business Transaction Bills of Exchange.................................................................. 44 2.8.1 Define Alternative Reconcil. Acct for Bills/Exch.Receivable............................ 44 1
Accounts Receivable [FI-AR] 2.8.2 Define Accounts for Bill of Exchange Transactions .......................................... 44 2.8.3 Prepare Bill of Exchange Charges Statement ..................................................... 46 2.8.4 Define Bank Sub accounts .................................................................................. 47 2.9 Business Transaction Interest Calculation:.............................................................. 48 2.9.1 Define Interest Calculation Types: ..................................................................... 48 2.9.2 Define Number Ranges for Interest Forms:........................................................ 49 2.9.3 Prepare Interest on Arrears Calculation:............................................................. 50 2.9.4 Prepare Account Balance Interest Calculation: .................................................. 55 2.9.5 Prepare Special G/L Transaction Interest Calculation:....................................... 57 2.9.6 Maintain Withholding Tax Code for Interest Document.................................... 57 2.9.7 Define Reference Interest Rates: ........................................................................ 57 2.9.8 Define Time-Based Terms:................................................................................. 58 2.9.9 Enter Interest Values:.......................................................................................... 59 2.9.10 A/R: Calculation of Interest on Arrears:............................................................. 60 2.9.11 A/R: Balance Interest Calculation: ..................................................................... 62 2.9.12 Assign Forms for Interest Indicators: ................................................................. 64 2.10 Closing Procedures Foreign Currency Valuation .................................................... 65 2.10.1 Define Depreciation Areas:................................................................................. 65 2.10.2 Define Valuation Methods:................................................................................. 66 2.10.3 Prepare Automatic Posting for Foreign Currency Valuation.............................. 69 2.11 Closing Procedures Reserve for Bad Debts ............................................................. 73 2.11.1 Define Methods................................................................................................... 73 2.11.2 Define Accounts for Reserve for Bad Debt ........................................................ 74
1 1.1
Glossary: Customer Account Groups:
Customer Account group represents a group of customers. The account group ensures that only the relevant screens and fields are displayed and ready for input for each of the customers different partner functions. For example, the address, communication, and bank data fields are omitted for the account group for one-time accounts. The account group controls: Method of Numbering: The type of number assignment used for the account number No. Range Interval: A number interval from which the account number is chosen. The system uses the account number to identify the customer. Field Status: Which fields are displayed when we enter or change customer master data and whether or not an entry must be made in these fields (field status) Type of Customer: Whether the account is a one-time account 1.2 Dunning: Dunning represents the process of sending payment reminder or a dunning notice to remind customer for their outstanding debts. The SAP System allows us to dun business partners automatically. The system duns the open items from business partner accounts in which the overdue items create a debit balance. The dunning program selects the overdue open items, determines the dunning level of the account in question, and creates a dunning notice. It then saves the dunning data determined for the items and accounts affected. We can use the dunning program to dun both customers and vendors. It may be necessary to dun a vendor if he or she has a debit balance as a result of a credit memo. If a customer is also a vendor, we can offset the account balances against one another. 1.3 Dunning Procedures
The dunning procedure controls various parameters that control how the open items of the business partners will be dunned. how dunning is carried out by the system. We can define as many dunning procedures as we like. 1.4 Dunning level
The dunning levels are calculated based on the number of days open items are in arrears. We can also have the system calculate the dunning levels based on the dunning amount or a percentage paid (sales-related dunning level determination).
Accounts Receivable [FI-AR] 1.5 Dunning areas:
A dunning area is an organizational unit within a company code used for the dunning process. A dunning area can be a division or a sales organization. We can assign a dunning area to an open item when we are posting. We can dun items separately by dunning area. 1.6 Open Item Management: Specification that items in an account has to be cleared by other items in the account. The total of the items involved in the clearing transaction must be zero. The account balance is therefore always the total of the open items. Customer and vendor accounts are always managed in this way. This allows us to monitor our outstanding receivables and payables at any time. We have to define open item management for G/L accounts in the master record. 1.7 Grace Days: Number of days by which the payment deadlines may be exceeded when manual payments are made. In the payment entry facilities, the grace days are added to the payment deadlines. This means that the system will accept cash discount deductions and net payments even after the original deadline. If the days in arrears are displayed during open item processing, the system reduces them by the number of grace days. 1.8 Reason Codes: Reason codes are used to segregate different reasons for under payment and over payment on account receivable line items. With reason code , we can define whether the difference should be charged off to G/L account or if a residual posting should be made. 1.9 Noted Items: Special item that does not affect any account balance. When we post a noted item, a document is generated. The item can be displayed via the line item display. Certain noted items are processed by the payment program or dunning program. For example : Down payment request. 1.10 Statistical Posting: The posting of a special G/L transaction where the offsetting entry is made automatically to a specified clearing account (received guarantees of payment for example). Statistical postings create statistical line items only.
Accounts Receivable [FI-AR] 1.11 Reversal Document: Reversal document is an accounting document, which nullify the document, which was posted earlier. We are reversing an accounting document, if we have posted a document with incorrect value or on wrong date or to a wrong account. A document can only be reversed if: It contains no cleared items It contains only customer, vendor, and G/L account items It was posted with Financial Accounting All entered values (such as business area, cost center, and tax code) are still valid If an accounting document is already cleared by another accounting document , then reversal can only be carried out after the clearing is reset. 2 2.1 2.1.1 Customization Steps Customer Master Define Account Groups with Screen Layout (Customers) OBD2 OBD2 IMG Financial Accounting Accounts Receivable and Accounts Payable Customer Account Master Data Preparations for Creating Customer Master Data Define Account Groups with Screen Layout (Customers)
T Code Path
Purpose: In this step, we will create the account groups for customers. We can also define reference account groups for one-time accounts. We can use these to control the fields of the one-time account screen so that, for example, certain fields are displayed as required fields or are hidden. When creating a customer account, we must specify an account group. We can specify a reference account group under "Control" in the "General data" part of a one-time account's master data. If we do not specify a reference account group, then, as previously, all fields of the one-time account screen are ready for input during document entry.
Customization: To carry out the activity, choose one of the above navigation options Select New Entries Update the screen as follows
General data field statuses are valid for customer master records created in this customer account group regardless of company code or sales organization. Company code data field statuses are valid for company code level only. This means that as customer are extended across several company codes, the fields in this section can have different value based on the company code using the customer master. The field stored in the sales data field status are valid for combinations of sales organizations, distributions channels, and divisions. These fields have an impact on the functionality of the SD module.
Double Click on Company code data, we will be taken to following screen, where we have to select fields which are required, optional and will be suppressed
Accounts Receivable [FI-AR] Double click on Account management Select required entry radio button for reconciliation account, as shown below
Press F3, to go the previous screen Double click on Payment transaction Select required entry radio button for terms of payment, as shown below
Click on
to save.
Similarly, we will create another customer group for one time customer and check the check box for one time customer as shown below.
Maintain the field status as maintained for our 1st customer group. Click on to save.
Accounts Receivable [FI-AR] Customization result: In this customization steps, we have created two-account group for customers. Customer group 9991 for regular customer and 9992 for one time customer. We have also maintained field status of customer account groups by making payment terms and reconciliation field status as required entry. 2.1.2 Create Number Ranges for Customer Accounts XDN1 T Code XDN1 Path IMG Financial Accounting Accounts Receivable and Accounts Payable Customer Account Master Data Preparations for Creating Customer Master Data Create Number Ranges for Customer Accounts Purpose: In this activity we will create the number ranges for the customer accounts. To do this, specify the following under a two-character key: A number interval from which the account number for the customer accounts is to be selected The type of number assignment (internal or external number assignment) Allocate the number ranges to the account groups for customers. Customization: To carry out the activity, choose one of the above navigation options Click on change interval icon. We will be taken to a screen, where we will maintain number range for customers Click on to insert new number range interval.
Update the screen as follows
Click on
to insert the above number range.
Similarly follow the above three steps to create another number range. The second number will be as follow
Accounts Receivable [FI-AR] Click on to save.
Customization result: In this customization steps, we have created two-account group number range for customers account groups i.e. number range 98 and 99. 2.1.3 Assign Number Ranges to Customer Account Groups - OBXR T Code OBXR Path IMG Financial Accounting Accounts Receivable and Accounts Payable Customer Account Master Data Preparations for Creating Customer Master Data Assign Number Ranges to Customer Account Groups Purpose: In this step we will assign the number ranges that we have created in the preceding step to the account groups for customers. We can use one number range for several account groups.
Customization: To carry out the activity, choose one of the above navigation options Click on button
Key 9991 customer account group ID for 9991 regular debtors as shown below.
Press enter, we will be taken to customer account group 9991 Key number range ID 98 against customer account group 9991, as shown below
Similarly follow the above steps, to assign the number range 99 to 9992 one-time debtors groups. Click on to save.
Customization result: In this customization steps, we have assigned the number range 98 and 99 created in our previous steps to customer account group 9991 and 9992 respectively. Customer created under this group will be assigned one sequential number out of these number ranges.
Accounts Receivable [FI-AR] 2.2 Business Transaction- Outgoing Invoices:
2.2.1 Maintain Terms of Payment OBB8 T Code OBB8 Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Outgoing Invoices/Credit Memos Maintain Terms of Payment Purpose: In this step, we will define rules with which the system can determine the required terms of payment automatically. The rules are stored under a four-character key. We assign the terms of payment specified to the customers in the master record via the key. The key and the terms determined with it are proposed when entering a document to the customer account. We can override the proposed payment terms , by entering another payment terms at the time of line item entry.
Customization: To carry out the activity, choose one of the above navigation options Click on new entries. Maintain the screen as follows
The description of the fields in the above screen are: Payment Terms: This is payment terms identifier of our payment terms Sales Text: This represents a short text expiation of our payment terms Day Limit: This field is only valid if our terms of payment depend on the day of the month. For Example, an invoice billed on or before the 10th of the month is due on the 25th of the same month, and an invoice billed after the 10th is due on the 5th of the next month. Given example, 10 will be entered in this field because the terms are good until the 10th day of the month. Own Explanation: This field is used to give a details explanation of the payment terms. This field should be used if we want to override the explanation that is automatically generated by the system. The system expiations is shown in the bottom fields. Account Type: This controls represent, to which type of account this payment term is applicable. A single payment term may be used for both customer as well as vendor. In this control we have to select whether the particular payment term will applicable for customer or vendor or both.
Base line date calculation: This is applicable, where the payment terms are depended upon the fixed day of a month. Fixed Day: Calendar day with which the system overwrites the day of the baseline date for payment of the line item. Additional Month: Number of months, which the system adds to the calendar month of the baseline date for payment.
Payment block/Payment Method Default: Block Key: If the terms of payment should propose a block key. The block key takes effect only if the terms of payment key are entered in the customer or vendor master record. If the payment term is inserted in the line item of the document, the block key if not defaulted. Payment Method: The payment method determines how payments are to be made, e.g. by check, bank transfer or bill of exchange. This key will override the payment method entered in business partners master Default Base line date: In this control box we will set what will be our default base line date. There are four options No Defaults: If this indicator set, we have key the base line date at our line item entry level Document Date: If this indicator is set, then the document date will be taken as base line date Posting Date: If this indicator is set, posting date will be the default base line date. Entry Date: If this indicator is set, the entry date is to be proposed in the field "Base date" during document entry. Payment Terms: In this control box we have three options 1. Installment Payment: We have check the radio button for installment payment or 2. Recurring Entries: This indicator controls whether the terms of payment in a recurring entry are to be taken from the customer or vendor master record, if no terms of payment key has been entered in the recurring entry original document 3. Make the setting for due date and cash discount. In this case we can make upto three levels for cash discount and payment due date. Percentage: Enter the percentage rate , that is to be used for the discount. No. of Days: Enter the number of days out from the baseline date for which the percentage discount is valid. Fixed Date: Enter the day of the month the discount ends if we do not want to use the baseline date.
Additional Months: If we want to add month(s) to the baseline date month to determine the length of time the discount is valid, enter the number of additional month(s) in this field. Explanation: The system defaults explanations of the payment terms in this field based of the percentage discount and length of time the discount is valid. An entry in the own expiations field overwrites the system-derived explanation. Click on to save.
Create another new payment terms as shown below for installment payment. In this payment terms we will not define any cash discount % or due date. Check that radio button for installment is checked
Click on
to save.
Customization result: In this customization steps, we have defined a payment terms 9991. This payment terms will be applicable for customers only. The default baseline date for this payment terms is document date that means, due date will be counted from the date of document. We have also customized the cash discount policy as follows 1. if payment made with in 2 days of the document date , cash discount will be 5% of the bill value, 2. if payment made with in 5 days of the document date the cash discount will be 2% 3. How ever the bill is due for payment after 10 days.
Accounts Receivable [FI-AR] 2.2.2 Define Terms of Payment for Installment Payments OBB9 OBB9 IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Outgoing Invoices/Credit Memos Define Terms of Payment for Installment Payments
T Code Path
Purpose: In this step we will determine whether an invoice amount is to be divided into partial amounts with different due dates. For these terms of holdback/retainage payment, we must determine the amount of the holdback/retainage in percent and the terms of payment for each holdback/retainage payment. If we then post an invoice with terms of holdback/retainage payment, the system generates the corresponding number of line items due to our specifications for the holdback/retainage. Customization: To carry out the activity, choose one of the above navigation options Click on New Entries Maintain the screen as follows
Click on
to save.
Payment Terms: Payment terms ID for installment payment Installment: This is installment sequential, this control what will be 1st installment. 2nd installment etc. Percent: This determines how the invoice will be divided into. Pmnt Term: Determines what will be payment term of these installments
Customization result: In this customization steps, we have defined a payment terms 9992 for installment payment. According this payment term payment can be made in 4 equal installment and the payment terms for installment is 9991. 2.2.3 Define Cash Discount Base for Outgoing Invoices OB70 T Code OB70
Accounts Receivable [FI-AR] Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Outgoing Invoices/Credit Memos Define Cash Discount Base for Outgoing Invoices
Purpose: In this step we will determine whether the tax amount is to be taken into consideration in the base amount for calculating the cash discount amount. We will make our specifications per company code. Customization: To carry out the activity, choose one of the above navigation options. Click on Position Button Enter company code 9999 Press Enter Check the check box as follows
Click on
to save.
Customization result: In this customization steps, we have defined cash discount will be granted on gross amount of the invoice / bill. 2.3 Business Transaction Incoming Payments Global Setting
2.3.1 Define Accounts for Cash Discount Granted OBX1 T Code OBX1 Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Incoming Payments Define Accounts for Cash Discount Granted Purpose: In this step, we will define to which account numbers for our cash discount expense amount will be posted. The system posts the cash discount amount to these accounts when clearing open items. Customization: To carry out the activity, choose one of the above navigation options.
GIVE chart of account ID .. 9999 Press Enter, we will be taken to following screen
Click on
to save.
Click on Accounts Select GL Account no 3000000151 from the dropdown box as shown below
Click on
to save.
Customization result: In this customization steps, we have defined account determination for cash discount granted to customer. GL Account 3000000151 will be updated when there is a cash discount. 2.3.2 Define Accounts for Overpayments/Underpayments - OBXL T Code OBXL Path IMG Financial Accounting Accounts Receivable and Accounts Payable
Business Transactions Incoming Payments Define Accounts for

Overpayments/Underpayments Purpose: In this activity we will define the numbers of revenue and expense accounts to which the system posts if the following requirements are fulfilled: There is a difference in payment. The difference can result from an underpayment or an overpayment. The difference is within the tolerance limits for an automatic adjustment posting. The difference cannot be posted via cash discount adjustments. Customization: To carry out the activity, choose one of the above navigation options. Give the chart of account ID .. 9999 Enter, we will be taken to following screen
Click on
to save.
Click on
to save.
Customization result: In this customization steps, we have defined account determination for over payment and under payments. GL Account 3000000152 will be updated when there is a cash discount. 2.3.3 Define Reason Codes for Overpayments/Underpayments - OBBE T Code OBBE Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Incoming Payments Incoming Payments Global Settings Overpayment/Underpayment Define Reason Codes Purpose: In this step, we will define reason codes, per company code, for handling payment differences in the form of (1) Residual items , (2) Partial payments, (3) Postings on account Reason codes come about, for example, if the cash discount period was exceeded, if cash discount was taken when net payment was due or simply if there is a computer error at the customer's. Per reason code, we 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 Customization: To carry out the activity, choose one of the above navigation options. Key Company Code 9999 Press Enter Click on New Entries, update the screen as follows
Reason Code: Key which represents a reason for payment differences. The keys can be freely defined in the system. Short Text: Reason Code short description Long Text: Reason code long description CorrT: Correspondence Type for Reason Code: Type of correspondence, which is to be created with the specified reason code in the case of payment differences. The requirement is that only this reason code occurs in the clearing procedure and that it was agreed that a payment notice is to be created for payment differences (residual item, partial payment, payment on account) for the customer/vendor tolerance group. C: Charge off difference via separate account :Indicator that payment differences with this reason code are charged off via a separate G/L account. The accompanying account is specified in the configuration menu depending on the reason code. D: Disputed item :Indicator which should cause a disputed item from payment differences with this reason code during residual item formation. Disputed items do not raise the total receivables for a customer in the framework of the credit management program. Disputed items can be displayed separately in the line item display and in credit management. In credit reviews, disputed items are not considered against the oldest open items nor against that percentage of open items with a specific number of days in arrears. Do not .: Do not Copy Text : If we set this indicator, the text for the reason code is not copied into the segment text of the residual item or the partial payment. Set the indicator if we want to enter the segment text manually.
Click on
to save.
Customization result:
Accounts Receivable [FI-AR] In this customization steps, we have defined two reason code 01 for short payment and 02 for excess payment. We have also defined these two reason code will be charged off to Profit and loss account. 2.3.4 Define Accounts for Payment Differences OBXL T Code OBXL Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Incoming Payments Incoming Payments Global Settings Overpayment/Underpayment Define Reason Codes Purpose: In this step, we will set the account determination for the reason codes for which payment differences are charged off via a separate G/L account.
Customization: To carry out the activity, choose one of the above navigation options. Key Company Code 9999 Press Enter, we will be taken to following screen
Click on
to save.
Click on
to save.
Customization result: In this customization steps, we have defined account determination for over payment and under payments. GL Account 3000000152 will be updated when there is a over payment / unser payment with this reason code. 2.4 Business Transaction Manual Incoming Payments
2.4.1 Define Tolerance Groups for Employees OBA4 T Code OBA4 Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Incoming Payments Manual Incoming Payments Define tolerance groups for employees Purpose: In this activity, we will define various amount limits for our employees with which we determine: The maximum document amount the employee is authorized to post The maximum amount the employee can enter as a line item in a customer or vendor account The maximum cash discount percentage the employee can grant in a line item The maximum acceptable tolerance for payment differences for the employee. Payment differences are posted automatically within certain tolerance groups. This way the system can post the difference by correcting the cash discount or by posting to a separate expense or revenue account Customization: To carry out the activity, choose one of the above navigation options. This steps has been customized in my free downloadable eBook A complete guide to Enterprises Structure from my website www.surya-padhi.net. 2.4.2 Define Tolerances (Customers) OBA3 T Code OBA3 Path IMG Financial Accounting Accounts Receivable and Accounts Payable
Business Transactions Incoming Payments Manual Incoming Payments Define Tolerances (Customers)
Purpose: In this step, we will specify the tolerances for customers. These tolerances are used for dealing with differences in payment and residual items, which can occur during payment settlement. Specify the tolerances under one or more tolerance groups. Allocate a tolerance group to each customer via the master record. For each tolerance group, specify the following: Tolerances up to which differences in payment are posted automatically to expense or revenue accounts when clearing open items The handling of the terms of payment for residual items, if they are to be posted during clearing Customization: To carry out the activity, choose one of the above navigation options. Click on New Entries Up date the screen as shown
Click on
to save.
The descriptions of the fields of the above screen are Grace Days Due Date: Number of days by which the payment deadlines may be exceeded when manual payments are made. Cash discount Terms displayed: During payment settlement, the items are displayed with the cash discount terms specified here. Permitted Payment Differences: Gain/Amount: Payment differences to our advantage are allowed up to the amount entered here. The amount always refers to the local currency. Payment differences up to the amount entered here are posted automatically by the system as increasing the profit. The system creates line items to show this Gain/Percentage: Differences when settling payments are accepted and posted automatically by the system up to the percentage rate entered here. The percentage rate is only valid if the difference is posted as a gain. The percentage rate is used for the maximum of the debit and credit totals of the items to be cleared. Gain/Adjust Discount By: When clearing payments, any payment differences up to the amount specified here are corrected with the cash discount posting as long as the cash discount amount is large enough for the adjustment. The value we specify here is used for differences that represent a gain. Permitted Payment Differences for Automatic Write Off: Rev./ Amount: Payment differences to our advantage are permitted up to the amount specified here. The amount always refers to the local currency. The system always automatically posts payment differences up to the amount specified here as increasing the profit. The system also creates line items .
Accounts Receivable [FI-AR] Rev./Percentage: The function 'Automatically write-off payment difference with function code AD is an enhancement of the function 'Differences from payment clearing'. As specified in the example, we can define different limits for payment differences in clearing processes. Expenses / Amount: Payment differences to our disadvantage are permitted up to the amount specified here. The amount always refers to the local currency. The system always automatically posts payment differences up to the amount specified here as reducing the profit
Expenses / Percentage: The system accepts and posts differences that arise during payment clearing up to the percentage rate specified here. The percentage rate only applies if the difference is to be posted as an expense. Specification for posting residual items for payment difference: Payment Terms from Invoice: Indicator that the terms of payment are to be transferred from the original item for residual items. In this case, the amount qualifying for cash discount is set in such a way that the relationship between the amount qualifying for cash discount and the line item amount of the original item is also given in the residual item. Only Grant Partial Cash Discount: Indicator that only partial cash discount is granted when clearing an invoice if an outstanding receivable is posted due to an insufficient payment. Fixed Payment Terms: Terms of payment key which is to be transferred to the line item when posting residual items. Dunning Key: The dunning key entered here is put into an automatically generated residual item line. In this way, the maximum dunning level can be specified for residual items, for example. Tolerances for payment advice: Outst. Reciv. Form/ Amount : If the net amount stated in the payment advice note exceeds the net amount of the open item by at least the value given here, then an outstanding receivable for the difference amount is automatically generated. Outst. Reciv. Form/ Percentage: If the net amount stated in the payment advice exceeds the net amount of the open item by at least the percentage rate given here, then an outstanding receivable is generated automatically to the amount of the difference. Outst Payable Form / Amount : If the net amount stated in the payment advice exceeds the net amount of the open item by at least the value given here, then a payable is posted automatically to the amount of the difference from the overpayment. Outst Payable Form / Percentage: If the net amount stated in the payment advice exceeds the net amount of the open item by at least the percentage rate given here, then a payable is posted automatically to the amount of the difference from the overpayment
Customization result: In our above customization step, we have defined upto 6 % of the invoice amount or Rs.10000.00 which ever is less, payment difference will be accepted from customer. Out of above payment difference upto maximum Rs.5000.00 will be adjusted towards cash discount. Out of the residual amount of over payment and under payment upto Rs.2000.00 or 2% of the invoice amount will be adjusted towards expenses or income as amount written off . 2.5 Business Transaction Automatic Incoming Payments - FBZP
2.5.1 Set Up All Company Codes for Payment Transactions: T Code OBVU Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Incoming Payments Automatic Incoming Payments Payment Method/Bank Selection for Payment Program Set Up All Company Codes for Payment Transactions Purpose: In this activity, we will make specifications for all company codes involved in payment transactions. Customization: To carry out the activity, choose one of the above navigation options. Click on New Entries. Maintain the screen as follows
Click on
to save.
The explanations of the fields are Sending company code: The sending company code is the company code that is known to the business partner. When making cross-company code payments, we can specify the sending company code as well as the paying company code for each company code. If the sending company code is different from the paying company code, the system notes the sending company code in the payment transfer medium or payment advice. This note is information for the business partner. Paying company code: In this field we find the company code which processes the payment transactions. Postings to the bank accounts or the bank sub-accounts are made in the company code specified here during automatic payment transactions. Separate payment per business area: If this indicator is set, line items from different business areas are paid separately. Pay meth suppl: Usage of Payment Method Supplements. Means that payments are to be separated in the document according to a preset characteristic.
Tolerance days for payable: Specifies the number of days by which the cash discount periods and period for the due date for net payment may be exceeded. Outgoing Pymt with cash disc form: Minimum Percentage Rate for Payments with Cash Discount. Specifies the lower limit for payments with cash discount deduction. Only items that have a cash discount percentage rate greater than or equal to the one specified here are paid with the cash discount deducted. If the percentage rate is less than the one specified here, payment is made at the due date for net payment. Max cash discount: Vendor Payments Always with Maximum Cash Discount. Means that the maximum cash discount is always to be deducted when automatically paying vendor invoices.Cash discount is also deducted if the payment is made after the predefined period.
Vendor : Spl G/L Transaction to be Paid: All open vendor items that have been entered with one of the specified special G/L indicators are included in the payment. Vendor: SP G/L Trans. For exception list:: All open vendor items that have been entered with one of the special G/L indicators are output in the exception list. Customer: Spl G/L Transaction to be Paid: All open customer items that have been entered with one of the specified special G/L indicators are included in the payment run. Vendor: SP G/L Trans. For exception list:: All open customer items that have been entered with one of the special G/L indicators are output in the exception list. 2.5.2 Set Up Paying Company Codes for Payment Transactions: T Code OBVU Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Incoming Payments Automatic Incoming Payments Payment Method/Bank Selection for Payment Program Set Up Paying Company Codes for Payment Transactions Purpose: In this activity, we make the following specifications for the paying company codes: Data for controlling the payment program Specifications for paying with bills of exchange Forms and sender details for advice notes and EDI accompanying sheets Customization: To carry out the activity, choose one of the above navigation options. We are not configuring any thing here. This has been dealt in A Complete Guide to Accounts payable. For details refer to my website :www.surya-padhi.net
Accounts Receivable [FI-AR] 2.5.3 Set Up Payment Methods per Country for Payment Transactions T Code OBVCU Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Incoming Payments Automatic Incoming Payments Payment Method/Bank Selection for Payment Program Set Up Payment Methods per Country for Payment Transactions Purpose: In this activity, we specify which payment methods are to be used in each country. Customization: To carry out the activity, choose one of the above navigation options. We are not configuring any thing here. This has been dealt in A Complete Guide to Accounts payable. For details refer to my website :www.surya-padhi.net 2.5.4 Set Up Payment Methods per Company Code for Payment Transactions T Code OBVU Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Incoming Payments Automatic Incoming Payments Payment Method/Bank Selection for Payment Program Set Up Payment Methods per Company Code for Payment Transactions
Purpose: In this activity, we specify which payment methods can be used per company code and determine the conditions under which a payment method should be used. Amount limits for payments within which the payment program can select the payment method Specifications for grouping items for payment (such as single payment for marked items) Specifications for foreign/foreign currency payments Specifications for optimizing bank selection Specifications for the form to be used for the payment medium Specifications for issuing payment advice notes
Customization: To carry out the activity, choose one of the above navigation options.
We are not configuring any thing here. This has been dealt in A Complete Guide to Accounts payable. For details refer to my website :www.surya-padhi.net
Accounts Receivable [FI-AR] 2.5.5 Set Up Bank Determination for Payment Transactions: T Code OBVCU Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Incoming Payments Automatic Incoming Payments Payment Method/Bank Selection for Payment Program Set Up Bank Determination for Payment Transactions Purpose: In this activity, we make settings that the payment program uses to select the banks or bank accounts from which payment is to be made. We define the following: Ranking order of banks We specify which house banks are permitted and rank them in a list. Bank accounts For each house bank and payment method (and currency, if required), we specify which bank account is to be used for payments. Available amounts For each account at a house bank, we enter the amounts that are available for the payment run. We enter separate amounts for incoming and outgoing payments. Specifying available amounts enables we to control which bank account is to be used for payments. We can specify the amounts depending on the value date at the bank. Value date We specify how many days elapse between the posting date of the payment run and the value date at the bank, dependent on the payment method, bank account, payment amount, and currency. We can have the system determine the value date, taking into account the bank calendar and any individual arrangements made with the bank. To do so, choose the activity Define Value Date Rules Fees/Charges We define the charges that are printed on the bill of exchange forms (standard practice in Spain).
Customization: To carry out the activity, choose one of the above navigation options. We are not configuring any thing here. This has been dealt in A Complete Guide to Accounts payable. For details refer to my website :www.surya-padhi.net 2.6 Business Transaction Dunning
2.6.1 Define Dunning Areas OB61 T Code OB61 Path IMG Financial Accounting Accounts Receivable and Accounts Payable
Business Transactions Dunning Basic Settings for Dunning Define Dunning Areas
Purpose: In this step, we will define our dunning areas. Dunning areas are used if several organizational units are responsible for carrying out dunning within one company code. These organizational units are referred to as dunning areas. The dunning area can correspond, for example, to a profit center, a distribution channel, a sales organization or a business area. Customization: To carry out the activity, choose one of the above navigation options. Click on New Entries Update the screen as shown
Click on
to save.
Customization result: In this customization steps, we have created two dunning areas 01 for customer group 9991 and dunning area 02 for customer group 9992. . 2.6.2 Define Dunning Keys OB17 T Code OB17 Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Dunning Basic Settings for Dunning Define Dunning Keys Purpose: We will define our dunning keys in this step. With the dunning keys, we can limit the dunning level of an item. Define either instead of or in addition to the dunning key whether the items with a dunning key are to be displayed separately in the dunning letter. Customization: To carry out the activity, choose one of the above navigation options. Click on New Entries Update the screen as shown below
Click on
to save.
Accounts Receivable [FI-AR] Customization result: In this customization steps, we have created one dunning key to limit the dunning at dunning level 2 for certain customer. 2.6.3 Define Dunning Block Reasons OB18 T Code OB18 Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Dunning Basic Settings for Dunning Define Dunning block reasons Purpose: In this step, we will define the reasons for a dunning block under a key. The key can be entered in an item or in the account of a business partner. Blocked items or accounts are not considered for the dunning run. Customization: To carry out the activity, choose one of the above navigation options. Click on New Entries Update the screen as shown below
Click on
to save.
Customization result: In this customization steps, we have created one dunning block reason for blocking the disputed items from being dunned. 2.6.4 Define Dunning Procedures - FBMP T Code FBMP Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Dunning Dunning Procedure Define Dunning Procedures Purpose: In this activity we will enter the settings that control the dunning program by: Specifying the company codes to include in dunning. We will specify these company codes when configuring the dunning program. Setting up the dunning procedure we want to use. Dunning procedures are company code independent. They determine the dunning interval, the grace periods for the due date determination, and the number of dunning levels. We can also set the dunning level at which we want to list all due items from an account in the dunning notice.
Accounts Receivable [FI-AR] Setting the dunning charges. We can either specify a fixed charge or have the system calculate the charge on the basis of a percentage rate we specify. Specifying the net payment due date at which a particular dunning level is reached. Specifying the dunning notice we want to send to our customers. We have to define one or more forms for the notice.
Customization: To carry out the activity, choose one of the above navigation options. Click on New Procedure Maintain the Screen as follows
Click on
to save.
The fields descriptions of the above screen are: Dunning Interval in days: These fields determine at what intervals the allocated accounts are to be dunned for every dunning procedure. During every dunning run, the system then checks whether the run date is at least this number of days since the date of the last dunning run. If this is not the case, then a new dunning notice cannot be created even if new items have become overdue on the account or individual items have changed their dunning level.
No of dunning levels: These fields determine how many time a account will be dunned Beside legal dunning a account may be dunned upto 9 time. Total due items from dunning level: Dunning level from which all the due items in an account are totaled. Min.days in arrears(acct): Days in arrears after which a dunning notice will be sent. Days in arrears which at least one item in this account must have for a dunning notice to be created. These minimum days in arrears have no influence on calculating the days overdue Line item grace periods: Grace periods per line item. Grace periods per line item which are taken into consideration during determination of the due date for the dunning run. An item whose days in arrears are smaller or identical to the grace periods, is taken as not due for that dunning notice. Interest Indicator: Interest calculation indicator for calc. of dunning interest. We enter an interest calculation indicator here if we want dunning interest to be calculated for this account. Standard Transaction Dunning: If this indicator is set, standard transactions - as opposed to special G/L transactions - are included when using this dunning procedure. This should be the default setting. Dun Special GL Transaction: An entry in this field means that special G/L transactions as well as standard transactions are included in the dunning procedure. Ref Dunning Procedure for Text: Dunning procedure, which is used to determine the form names when printing dunning notices. This field simplifies the maintenance of the form names for procedures which have the same number of dunning levels and the same form layout. If this field is left blank, the selected dunning procedure is set automatically. The form names can only be maintained for procedures in which the reference dunning procedure is the same as the dunning procedure.
Besides main screen there are other 5 button is there. Screen behind these buttons needs to be configured. Click on Dunning Levels. Maintain the screen as follows
The above screen is having following fields and meaning thereof. Days in arrears: Minimum number of days in arrears, referring to the due date for net payment, that an item must show in order to reach a certain dunning level. No grace periods are taken into consideration for calculating the days in arrears. Calculate Interest: This indicator determines that interest is to be calculated for documents with the dunning level. Always Dun? Indicates that a dunning notice is still printed even if no change has been made to the dunning proposal since the last dunning run. Print All Items: This indicator determines that all open items are to be printed in the dunning notices that have this dunning level. The dunning level of the dunning notice is the same as the highest dunning level of the items in the notice Payment Deadline: If we wish to enter a payment deadline for payment of the overdue items in the dunning notice, we can enter the number of days here. This number is added to the date of issue of the dunning run and creates the payment deadline.
Accounts Receivable [FI-AR] Always dun in legal dunning Proc.: If a legal dunning procedure has been entered in the customer/vendor master record, a further dunning notice is usually only sent when further account movements have occurred. If we wish to send a dunning notice although no further account movements have occurred, select this indicator. Click on Charges. Enter Currency INR and Enter
Maintain the screen as follows
In this configuration steps, we will define what will be dunning charges at each dunning level. The above screen is having the following fields and meaning there off Dunning Level: Dunning level of the customer/vendor which was reached by the last dunning run. From Dunn.Amt: Total of all overdue items which are printed in a dunning notice. If all open items of an account have been posted in the same currency, then the total is determined in this currency. Otherwise, the local currency is used. Dunn.Charges: The fixed dunning charge in dunning currency can be printed on the dunning notice. If a customer receives several dunning notices (as a result of the dunning notice per dunning area or dunning notice per dunning level setting, or a dunning grouping), the dunning charge is printed on every dunning notice. Dunn. Charge %: Dunning charge in percent. The percentage is multiplied by the total of all overdue items in a dunning notice. The result is the dunning charge in dunning currency.
Accounts Receivable [FI-AR] If the dunning notice only contains items in one currency, this is the dunning currency. If the dunning notice contains items in different currencies, the dunning currency is the local currency. If we have defined a dunning charge as a percentage, a fixed dunning charge cannot be defined at the same time. Click on Minimum Amounts Enter Currency INR and Enter Maintain the screen as follows
Dunn. Level : Dunning level of the customer/vendor which was reached by the last dunning run. Minimum Amount: Minimum amount to be dunned. Minimum amount of the overdue items which is necessary to set a dunning level . If this amount is not reached in a dunning level, then the items in this dunning level are assigned to the next lowest, and the system checks whether a dunning notice can then be created in this dunning level. Min.Percentage: Minimum percentage rate used in editing. Percentage below which the allocated dunning level is not triggered by the system. The minimum percentage is multiplied by the total of all open items on a particular account. A dunning notice is only created at this level if all the items due at this dunning level have reached at least the level determined by the multiplication. Min.amt. for interest: Minimum amount to be reached by interest in order to be identified at this level in dunning notices. Click on Dunning Texts.
Accounts Receivable [FI-AR] Enter Company code 9999 and Enter Maintain the screen as follows
Click on
to save.
Press F3 come back to main screen of Dunning Procedure
Dunning by dunning area: Indicator that determines that dunning notices are to be created separately by dunning area rather than per account for a company code. The updating of dunning data in the master record of the business partner, for example, dunning level and date of the last dunning notice, takes place separately according to dunning areas. Separate dunning notice for each dunning level? :An entry in this field means that a separate dunning notice is created within an account for every dunning level determined. Click on Dunning Texts Enter Company code 9999 and Enter
Dunning level : Dunning level of the customer/vendor which was reached by the last dunning run. Dunning Area : The dunning area represents an organizational entity that is responsible for dunning. The dunning areas represent a sub-structure of the company codes. Form: Key of the form which is to be displayed for the dunning level. The layout of the form is defined in the SAPscript word processing tool using the key specified here. Adv: Indicator for generation of payment advice.
Accounts Receivable [FI-AR] Press F3 to come to main screen Click on to save.
Customization result: In this customization steps, we have maintained various parameter for our dunning procedure as follows: We have defined dunning letter will be send at 10 days interval to every customer. A business partner will be dunned maximum 4 times 2.7 Business Transaction Down Payment Received Advances received from the customers will be tracked by using the Special General Ledger Transactions. When Special General Ledger Transactions are used system will be posting to an alternative Reconciliation account instead of normal reconciliation account, which is assigned in the customer master. In this active Alternative Reconciliation Accounts will be assigned in relation to the Customer Master Reconciliation account. 2.7.1 Define Reconciliation Accounts for Customer Down Payments - OBXR T Code OBXR Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Down Payment Received Define Reconciliation Accounts for Customer Down Payments Purpose: In this step, we will define an account in which the customer down payments or down payment requests are managed in the general ledger. In the case of down payments or down payment requests, the posting is automatically made to this account instead of to the normal receivables account (reconciliation account) Create one GL Account 2000000011 in Current Liabilities Grouping through T Code FS00 for SPL GL Reconciliation account for Down Payment with field status group G031 Create one GL Account 1000000051 in Current Assets Grouping through T Code FS00 for Debtors control Account with field status group G019 Create one GL Account 2000000012 in Current Liabilities Grouping through T Code FS00 for Customers Security Deposit Account with field status group G019
Customization: To carry out the activity, choose one of the above navigation options. We will taken to below screen
Double click on Sp GL Indicator A Enter Company Code .. 9999 and enter
The Field descriptions of the above screen are Recon. Acct : 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 Special G/L Account: The G/L account number to which spl gl transaction will be updated Click on to save.
Similarly maintain relation GL account for down Payment Request Double Click on
Give Chart of account ID 9999 Maintain the screen as follows
Similarly maintain relation GL account for security Deposit from customer Double click on Sp GL Indicator C Enter Company Code .. 9999 and enter
Click on
to save.
Customization result: In this customization steps, we have assigned GL Account no 2000000011 (reconciliation account for down payment) assigned to customer reconciliation GL account 1000000051. Similarly GL Account no 2000000012 (reconciliation account for down payment) assigned to customer reconciliation GL account 1000000051.
2.8
Business Transaction Bills of Exchange - OBYN
2.8.1 Define Alternative Reconcil. Acct for Bills/Exch.Receivable T Code OBYN Path IMG Financial Accounting Bank Accounting Business Transactions Bill of Exchange Transactions Bills of Exchange Receivable Post Bill of Exchange ReceivableDefine Alternative Reconcil.Acct for Bills/Exch. Receivable Purpose: In this activity we will define the accounts in which bill of exchange payments are recorded in the general ledger. When we post bills of exchange, the system will post the entries to these accounts instead of to the normal receivables account (reconciliation account). This way it is possible to keep bills of exchange separate from the normal receivables. A transfer posting for balance sheet purposes is no longer necessary. Customization: To carry out the activity, choose one of the above navigation options. Double Click on Key Chart of Account 9999, Enter
Click on to save. Customization result: In this customization steps, we have assigned GL Account no 1000000054 (reconciliation account for Bills of exchange receivable) assigned to customer reconciliation GL account 1000000051.. 2.8.2 Define Accounts for Bill of Exchange Transactions - OBYH T Code OBYH Path IMG Financial Accounting Bank Accounting Business Transactions Bill of Exchange Transactions Bills of Exchange
Accounts Receivable [FI-AR] Receivable Post Bill of Exchange ReceivableDefine Accounts for Bill of Exchange Transactions Purpose: In this step, we will define the account numbers and the posting keys for automatic postings, which the system makes when posting the payment by bill of exchange and bill of exchange usage. For some transactions (posting a bill of exchange payment request, for example) we only need posting keys. Customization: To carry out the activity, choose one of the above navigation options. Click on Key Chart of Account ID 9999 Maintain the screen as follows
Click on Click on
to save.
Key Chart of Account ID 9999
Save
Click on
Customization result: In this customization steps, we have assigned GL Account no 3000000054 assigned to bank discounting charges. 2.8.3 Prepare Bill of Exchange Charges Statement - SPRO T Code SPRO Path IMG Financial Accounting Bank Accounting Business Transactions Bill of Exchange Transactions Bills of Exchange Receivable Post Bill of Exchange ReceivableDefine Accounts for Bill of Exchange Transactions Purpose: In this step, we will define the default values for the bill of exchange charges dependent on company code. These values are proposed when entering a bill of exchange receivable. These include: Discount percentage rate Collection charges in local currency Tax code for taxes on sales/purchases Bill of exchange tax code Customization: To carry out the activity, choose one of the above navigation options. Click on New Entries Maintain the screen as follows
Click on
to save.
The above screen consists of following fields Company Code: The company code is an organizational unit within financial accounting. Des. Rate: Percentage Rate for Bill of Exch. Disc. with Passed-On Chrgs. When accepting bills of exchange receivable, bank charges can be invoiced to the customer. This includes the discount charges, which are calculated from the percentage rate specified here and the term of the bill of exchange. LC Collection Charges: Charge for bill of exchange collection in local currency. Charges for bill of exchange collection in local currency. This is not necessarily the amount which is actually to be paid, but the amount which is debited to the customer who has paid with a bill of exchange. Tax Code: Tax code for bill of exchange charges. This field contains the corresponding tax code providing that the debit posting of the customer with bill of exchange charges is subject to taxes on sales/purchases. B/e tax code: Bill of exchange tax code. Indicator by which the bill of exchange tax rate is determined. Curr: Currency. Currency key for amounts in the system.
2.8.4 Define Bank Sub accounts - OBYK T Code OBYK Path IMG Financial Accounting Bank Accounting Business Transactions Bill of Exchange Transactions Bills of Exchange Receivable Present Bill of Exchange Receivable at BankDefine Bank Sub accounts Purpose: We will specify the bank sub accounts that display the bill of exchange liability from the point of view of the bank. The bill of exchange liability results from the bill of exchange usage. Customization: To carry out the activity, choose one of the above navigation options. Click on New Entries
Click on
to save.
2.9
Business Transaction Interest Calculation:
2.9.1 Define Interest Calculation Types OB46 T Code OB46 Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Interest Calculation Interest Calculation Global Settings Define Interest Calculation Types Purpose: In this step, we will create our interest indicators and determine whether they are to be used for the line item interest calculation or account balance interest calculation. Customization: To carry out the activity, choose one of the above navigation options. Click on New Entries Update the screen as follows
Click on
to save.
The above screen has following fields: Int. ID : Enter an interest calculation indicator . This interest indicator will be keyed at business partners master for whom we will determine interest. Name: Enter here name of the Interest Calculation indicator. Acct. as intClcInd: Indicator, which determines that the account number is used as an extended interest indicator in the interest terms. Int. Calc. Type: Decides whether the interest indicator participates in the calculation of interest on arrears (per line item) or in the account balance interest calculation (interest scale).
Name: This text appears when fixed values are displayed in the F4 help. It explains the possible input values. Similarly create another Interest ID AB for interest calculation on security deposit. Ensure that interest calculation type should be S (Balance Interest Calculation). In the above step, we have created two interest calculation ID as follows :
Customization result: The interest indicator AA and AB was configured for our company code 9999. AA will be used for overdue account receivable interest calculation. While AB will be used for interest calculation other GL account like bank interest, security deposits 2.9.2 Define Number Ranges for Interest Forms FBN1 T Code FBN1 Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Interest Calculation Interest Calculation Global Settings Define Number Ranges for Interest Forms
Purpose: In this activity we will create number ranges for interest forms by: Specifying an interval of numbers to assign to the interest forms. Selecting the type of number assignment (internal). The system assigns a unique number from the number range interval. Once we post an interest document, the number of the form is stored in the "Reference" field. Customization: To carry out the activity, choose one of the above navigation options. Key Company code 9999 Click on
Click on Maintain the values of the table as follows
Click on Click on
to insert the number range to save.
Customization result In this step we have created the internal number range for interest form IN for year 2005 2.9.3 Prepare Interest on Arrears Calculation OB82 T Code OB82 Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Interest Calculation Interest Calculation Global Settings Prepare Interest on Arrears Calculation
Purpose: In this step we will make general specifications for each interest indicator for the calculation of interest on arrears. To do this, we will make specifications for the selection of items as well as for calculating interest. We can make further specifications as to the subsequent processing of interest, output control and for posting. Customization: To carry out the activity, choose one of the above navigation options. Click on New Entries Maintain the screen as follows
Similarly create another interest indicator for GL balance interest calculation
Click on
to save.
The above screen is having the following fields and the meaning thereof Int. Calc. Indicator: Key for the allocation of the interest terms to the respective accounts. Selection of Items: The radio buttons in this section determines the line on which interest is calculated. The program will try to select all available line items that have become past due since the data of the last interest run based on the parameters selected here, the available entries are as follows: Open and All Cleared Items: The program includes those open items that are posted up to the upper limit of the period. Items that are posted after the upper limit of the period are not included. If the clearing date (posting date of the clearing) is after the upper limit of the period, the program selects the item as an open item.
Accounts Receivable [FI-AR] In addition, the program selects clearing transactions that contain a payment. These are transactions in which open items are cleared by an incoming payment to the bank account. It also includes clearing transactions in which open items are cleared by credit memos, offsetting entries or payments on account. Open Items and Items Cleared with Payment: The program includes those open items that are posted up to the upper limit of the period. Items that are posted after the upper limit of the period are not included. If the clearing date (posting date of the clearing) is after the upper limit of the period, the program selects the item as an open item. In addition to the open items, the program includes only those clearing transactions that contain a payment. This enables we to exclude the credit memos, offsetting entries and payments on account that were not immediately cleared with a receivable during posting. Because the accounts are maintained later, we can prevent an unnecessary increase in the number of items listed in the letter by excluding those transactions. No Open Items All Cleared Items: This option prevents open items from being selected. The program then only includes cleared items. The clearing date (posting date of the clearing) must be within the period of interest calculation. No Open Items - Only Items Cleared with a Payment :This option prevents open items from being selected. The program includes only those cleared items that contain a payment. The clearing date (posting date of the clearing) must be within the period of interest calculation. Calendar type: The calendar type determines how many interest days per month and year are used as a basis for calculating interest on financial investments. The number of days in the year is used as the divisor for the interest rate to calculate the daily interest rate from the annual interest rate. The available options are as follows: - B ( Bank Calendar) : The Bank calendar uses 360 days as the basis for a year and 30 days as the basis for a month. - F ( French Calendar): The French calendar uses 360 days as the basis for a year and the exact number of days in the month as the basis for a month. - G(Gregorian Calendar): The Gregoruan Calendar uses 365 days as the basis for a year and the exact number of days in the month as the basis for a month. - J (Japanese Calendar) The Japanese Calendar uses either 365 or 366 days (depending on leap years) as the basis for year and 30 days as the basis for a month. Transfer days : Transfer days for interest for days overdue. Transfer days are the days required for a payment to go from the payer to the payee (bank run times for payment transfers, for example). We can also include late account maintenance with transfer days. Tolerance days : Tolerance days for calculating interest on arrears. A customer can clear payables which are already due without any interest being calculated. This can occur due to grace days.
Examples (Assume that the grace period= 2 days): 1.) An item is 20 days overdue. If we subtract the two-day grace period, the item is still 18 days overdue. This means that interest will be charged on the item. However, 20 days of interest are calculated Factory Calendar: A factory calendar distinguishes between working days and nonworking days. Calculate interest on items paid before due date: Indicator which means that credit interest is calculated for items paid prior to their due date, provided that the item paid was not subject to a cash discount. Interest is calculated using credit interest rates. Only calculate interest on debit items: Indicator, which means that, in principle, interest is only calculated on debit entries. Otherwise, interest would also be charged to credit items. The credit item would be treated as a debit item; in particular, the same interest rate is applied to both. Reason: If the credit memo is not cleared right away by the invoice, but cleared later, both the invoice and credit memo are "overdue" and consequently balance out in terms of interest.
Calculate using interest calculation numerators: Option to determine first the interest calculation numerators resulting from the amount and the days the system calculates. In the next step, the system then calculates the interest from the interest calculation numerators. Round-off interest calculation numerators (if used): Indicator that means that the interest calculation numerators determined are always rounded off immediately. This is only useful if interest calculation numerators are to be calculated. Function module for other interest calculation: If the interest rate determination is not to be carried out in the standard way (via transaction and business types), we should enter the name of the function module which provides the interest rate determination here. The interface, among other things, is the table structure T_ZSTAB. For further information on the interface, see the sub-routine 'INTEREST_RATES_EX'. Make sure that we do not make any other entries here. Amount Limit: Minimum/maximum amount of interest .If the interest amount calculated per account and currency is larger than the minimum/maximum amount, an interest settlement is created. If the calculated interest amount is smaller than the minimum/maximum amount, no interest settlement is generated. We can thus avoid interest settlements being created for small amounts (if the interest amount is smaller than delivery charges, for example). No interest payment: Select this option if We do not want an interest settlement created when an interest payment is produced. An interest payment is produced if the credit interest
Accounts Receivable [FI-AR] (because of interest calculated on items paid before the due date) is greater than the debit interest. Number range for customizing interest calc.The number range we enter here is used for numbering interest forms. Print posting key text : Indicator which means that the posting key text is output in the line item during interest form output (in field RFDUZI01-ZTEXT). Terms of payment key : Key for defining payment terms composed of cash discount percentages and payment periods. Tax Code: Tax on sales/purchases code The tax code represents a tax category which must be taken into consideration when making a tax return to the tax authorities. Tax codes are unique per country. The tax rate calculation rules and further features are stored in a table for each tax code.
2.9.4 Prepare Account Balance Interest Calculation - SPRO T Code SPRO Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Interest Calculation Interest Calculation Global Settings Prepare Account Balance Interest Calculation Purpose: In this step we will make general specifications for each interest indicator for the account balance interest calculation. These include determination of the period, the interest determination, the subsequent processing of interest, the output control for printing forms as well as the terms of payment. Customization: To carry out the activity, choose one of the above navigation options. Click on New Entries Maintain the screen as follows
Click on
to save.
There are certain new fields in the above screen , these are Intrest Calc. Freq: Interest calculation frequency in months An entry in this field determines the intervals (in months) at which interest is to be calculated automatically for this account (account balance interest calculation). The interest calculation frequency is added to the date of the last interest calculation. Settlement Day: Settlement day for interest calculation of account balance Along with the interest frequency and the key date of the last interest calculation, this determines the upper limit of the interest calculation period to be included in a program run. We can specify a value between 01 and 31. Month end Indicator: Month-end indicator . We use this indicator to stipulate whether, in the "bank calendar" or "Japanese calendar", February 28 is treated as the 28th or the 30th.
2.9.5
Prepare Special G/L Transaction Interest Calculation - SPRO SPRO IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Interest Calculation Interest Calculation Global Settings Prepare Special G/L Transaction Interest Calculation
T Code Path
Purpose: In this step, we will define an alternative interest indicator for special G/L transactions. The specifications only apply to the account balance interest calculation. Customization: To carry out the activity, choose one of the above navigation options. Click on New Entries Maintain the screen as follows
Click on
to save.
2.9.6 Maintain Withholding Tax Code for Interest Document - SPRO T Code SPRO Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Interest Calculation Interest Calculation Global Settings Maintain Withholding Tax Code for Interest Document Purpose: In this activity we will define withholding tax codes for creating interest documents. Customization: To carry out the activity, choose one of the above navigation options. We are not customizing any thing here 2.9.7 Define Reference Interest Rates - OBAC T Code OBAC Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Interest Calculation Interest Calculation Define Reference Interest Rates Purpose: In this step, we will define our reference interest rates by entering a key and a mnemonic name. All other fields are purely informative. Customization: To carry out the activity, choose one of the above navigation options.
Accounts Receivable [FI-AR] We are not customizing any thing here 2.9.8 Define Time-Based Terms OB81 T Code OB81 Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Interest Calculation Interest Calculation Define Time-Based Terms Purpose: In this activity we will specify how the system determines an interest rate for each interest indicator. We can make these settings based on the currency and a validity date. Customization: To carry out the activity, choose one of the above navigation options. Click on New Entries Maintain the screen as follows
Click on
to save.
Int. Cal. Indicator: Enter the Interest Indicator indetifier to which yu wish to assign a reference interest rate. Currency Key: Enter currency key identifier that is to be used in the interest calculation.
Accounts Receivable [FI-AR] Eff. From: Enter the first date this relationship is valid. If in the future wewant to assign the interest indicator to a different reference interest rate, we can create a new record with a valid from date that is later than the valid from date in the first record. Sequential number: If we are calculating interest bases upon account balances instead of line items, we can enter the sequence number that is to be used. This field in combination of with the amount from field., allows we to use more than one interest rate based upon the amount of the account balance and the sequence in which reference interest rates are assigned. If we are using line item interest calculation, always enter 1 in this field. Term: Use the pull-down box on this field o select the appropriate entry. This field determines what the interest indicator / reference interest rate relationship is used for ( credit interest for days overdue , Credit interest for account balances, Debit interest for days overdue, or debit interest for account balances) Ref. Interest Rate: Key under which a reference interest rate is defined. Premium: Percentage rate added to the reference interest rate. Amount from: Amount from which an interest rate is valid. By specifying the amount, an interest rate specification staggered according to amounts is possible. This is currently only implemented for the balance interest calculation. Similarly maintain the interest rate for interest indicator AB
2.9.9 Enter Interest Values OB83 T Code OB83 Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Interest Calculation Interest Calculation Enter Interest Values
Purpose: In this step, we will specify the required interest rates dependent on the date for the reference interest rates. Customization: To carry out the activity, choose one of the above navigation options. We are not customizing any thing here 2.9.10 A/R: Calculation of Interest on Arrears OBV1 T Code OBV1 Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Interest Calculation Interest Posting A/R: Calculation of Interest on Arrears Purpose: In this step, we will define the specifications for posting the interest calculated as interest on arrears. The account determination is carried out via the posting interface of application 1000 (interest on arrears). The following specifications are necessary: Account determination keys and posting details G/L accounts Document type
Customization: To carry out the activity, choose one of the above navigation options. Click on New Entries Maintain the screen as follow
Press Enter to continue Maintain the screen as follows
Click on
to save.
Click on Accounts,
Key Company Code 9999 Maintain the screen as follows
Click on
to save.
Accounts Receivable [FI-AR] Customization results: In this customization steps , we have used standard account symbols 0003 and 1000 for automatic account assignment procedure for interest posting. Account symbol 1000 always represents the customer master record updation, hence it is masked with + . In company code 9999 we have configured account symbol 0003 to map to G/L account 4000000151 (Interest income) . The standard customer debit posting 01 is used to debit customer account and the credit posting key 50 is used to credit the interest income. 2.9.11 A/R: Balance Interest Calculation - OBV3 T Code OBV3 Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Interest Calculation Interest Posting A/R: Balance Interest Calculation Purpose: In this step, we will define the specifications for posting the interest calculated on the customer account balance. The account determination is carried out via the posting interface of application 0005 (customer interest scale). The following specifications are necessary: Account determination keys and posting details G/L accounts Document type
Customization: To carry out the activity, choose one of the above navigation options. Click on New Entries Maintain the screen as follows
Press Enter Maintain the screen as follows
Click on
to save.
Click on accounts
Key Company Code. 99999 Press Enter
Update the screen as follows
Click on
to save.
Customization results: In this customization steps , we have used standard account symbols 0002 and 1000 for automatic account assignment procedure for interest posting. Account symbol 1000 always represents the customer master record updation, hence it is masked with + . In company code 9999 we have configured account symbol 0002 to map to G/L account 4000000151 (Interest Expenses) . The standard customer debit posting 40 is used to debit interest expenses account and the credit posting key 11 is used to credit customer account. 2.9.12 Assign Forms for Interest Indicators - SPRO T Code Path SPRO IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Interest Calculation Interest Print Assign Forms for Interest Indicators
Purpose: In this step, we will specify which form is to be used for the letter on interest on arrears or account balance interest for each interest indicator. The forms defined here are used if no other form is specified when calculating interest. The form we define with SAPscript (see "layout set") consists of a letter and further information for the items or account balances on which interest is calculated. This includes an overview of line items, an interest rate overview and an interest amount overview. Customization: To carry out the activity, choose one of the above navigation options. Click on New Entries Maintain the screen as follows
Click on
to save.
Customization results: In this customization steps , we have used SAP standard form F_DUZI_01 for both interest indicator AA and AB. 2.10 Closing Procedures Foreign Currency Valuation 2.10.1 Define Depreciation Areas SPRO T Code SPRO Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Closing Valuate Define Depreciation Areas Purpose: Closing can be carried out according to various legal regulations by which different valuation principles apply. To be able to take these different valuation approaches into consideration for calculation and posting, we must create valuation areas. These valuation areas are used for:

Foreign currency valuation (SAPF100, RFSBEW00) and Sorted list of receivables/payables (SAPF101)
Click on New Entries
Maintain the screen s given below
The above screen is having the following fields and the meaning there off Valuation: Valuation Area for FI Year-End Closing. Valuation area in FI (for example, HGB or US GAAP) for use in year-end closing operations. Using an alternative valuation area, we can display different valuation approaches and post to different accounts. The valuation result can be stored per document item and the sorted list can be used, for example, for additional closing operations. Note that in the case of the foreign currency valuation, these stored valuation differences cannot be used for calculating the realized exchange rate differences. Crcy. Type: Currency Type and Valuation View. The currency type is a key describing a currency with regard to: Its role within the R/3 System The valuation method with which the amount arose, if we use functions for parallel valuation. Long txt : It is the description of valuation area , which narrates the purpose of this valuation approach
Click on
to save.
2.10.2 Define Valuation Methods - OB59 T Code OB59 Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Closing Valuate Foreign Currency Valuation Define Valuation Methods Purpose: In this activity we define our valuation methods. A valuation method represents a group of specifications that we require for balance and item valuation. We specify the valuation method we require before each valuation run. Customization: To carry out the activity, choose one of the above navigation options.
Click on New Entries
Maintain the screen as given below
Click on
to save.
The above screen is consists of various parameters , which are described below Valuation Method: Cross-chart of accounts unique key for determining a foreign currency valuation method. Description: Name of the valuation method. Valuation Procedures: Lowest value principle: Indicator that the items are valued according to the lowest value principle. The valuation is only displayed if the valuation difference between the local currency amount and the valued amount is negative, that is an exchange rate loss has taken
Accounts Receivable [FI-AR] place. The valuation is calculated per item total. Items with invoice reference are viewed together. Strict lowest value principle: If this field is selected, the item is valued according to the strict lowest value principle. The valuation is only displayed if, as a consequence, the new valuation has a greater devaluation and/or a greater revaluation for credit entries than the previous valuation. The valuation is calculated per item total. Items with the same invoice reference are viewed together. Always evaluate : If we select this procedure, revaluations are also taken into consideration.
Revalue Only: Valuation Method: Revalue Only - Do Not Devalue If we select this method, the system carries out evaluations only. Example: Foreign curr. Local cur. 100 USD 150 DEM Valuation exch.rate 1.6 +10 DEM Revenue 10 DEM -100 USD Valuation exch. rate 1.6 Valuation exch. rate 1.45 -150 DEM (-10 DEM) No valuation due to expense 5 DEM Revenue 5 DEM
Reset Valuation Run: If we select this parameter then the open items are valuated at the acquisition price. This way the valuation difference is set to zero. The old valuation method is reset. The account determination is reversed: The revenue that arises is posted to the expense account. Post per line item: Normally the valuation results are posted in a summarized form. If we select this parameter, a line item is generated for each valuated item in the valuation posting as well as in the adjustment account, such as the expense or revenue account. Document type: This controls , what type of document will be utilized for posting of valuation difference Crop. Group vendor: Evaluate Accounts According to Group Definition. This has the effect that balances are created for several accounts. Customer and vendor accounts are balanced and grouped according to the group to which they belong. G/L accounts are balanced according to the valuation group. During further processing, the group is then viewed as a whole, for example during foreign currency valuation the group balance is used to determine the exchange rate type. Crop. Group Cust: Evaluate Accounts According to Group Definition. This has the effect that balances are created for several accounts. Customer and vendor accounts are balanced and grouped according to the group to which they belong. G/L accounts are balanced
Accounts Receivable [FI-AR] according to the valuation group. During further processing, the group is then viewed as a whole, for example during foreign currency valuation the group balance is used to determine the exchange rate type.
G/L valuation Grp: Evaluate Accounts According to Group Definition. This has the effect that balances are created for several accounts. Customer and vendor accounts are balanced and grouped according to the group to which they belong. G/L accounts are balanced according to the valuation group. During further processing, the group is then viewed as a whole, for example during foreign currency valuation the group balance is used to determine the exchange rate type. Write Extract: Write Sequential File with the Document Changes. If we select this parameter, then the SAPF100 valuation run must be given a file name. A series of information is stored in this file for every valuated line item. The format is determined by the F100FILE structure. This extract is used for separate, non-SAP applications. Exchange Rate Type for Debit Balances: This exchange rate type is used for the valuation of an item if the balance determined is positive. Exchange Rate Type for Credit Balances: This exchange rate type is used for the valuation of an item if the balance determined is negative. Determine exchange rate type from account balance: If we select this field, the account balance/group balance in the relevant foreign currency is used to determine the exchange rate type. Exchange rate type from invoice reference balance: If we select this field, the balance per invoice reference number and currency is considered for the exchange rate type determination. Use exchange hedging: If we select this field, the items are valued at the hedged exchange rate. Minimum Difference for Display in Foreign Currency Valuation : Rounding differences can also arise for hedged or fixed exchange rates. By specifying an absolute amount, we can suppress currency differences up to the selected amount.The specification always refers to the smallest currency unit. 2.10.3 Prepare Automatic Posting for Foreign Currency Valuation- OBV1 T Code OBA1 Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Closing Valuate Foreign Currency Valuation Prepare Automatic Posting for Foreign Currency Valuation
Accounts Receivable [FI-AR] Purpose : In this activity we define the numbers of the accounts to which we want the system to automatically post exchange rate differences when open items and foreign currency balances are valuated. We can also define the expense and revenue accounts to which realized exchange rate differences (that arise when open items are cleared) are posted. The accounts that are posted to when open items are valuated and exchange rate differences are posted can be defined per currency type. Gains from exchange rate fluctuations are then posted to different accounts, depending on whether the gains are in local currency or group currency. When valuating open items the system posts to a balance sheet adjustment account and to an account for exchange rate differences determined during the valuation (these are either revenue or expense items). We define the account numbers accordingly. For the valuation of foreign currency balances we define revenue and expense accounts to which exchange rate differences (determined during the valuation of foreign currency balances) are posted. We define these accounts under a key. We then enter this key in the accounts to be valuated. If the exchange rate differences determined for a group of G/L accounts are posted to the same expense and revenue accounts, enter the same key in the accounts to be valuated. This key is user-defined. We can differentiate the accounts by currency. Exchange gains and losses are then posted to the accounts designated for the currency involved. We must not change our accounts for the valuation posting after the first valuation run has taken place, since the postings can otherwise not be reversed. If we do not want to differentiate the accounts by currency, we require an entry with the currency "blank" (this is the default value). The "exchange rate differences" key in the company code-dependent part of the G/L accounts must also be empty.
Double Click on Click on New Entries Maintain the screen as shown below
Click on
to save.
The field descriptions of the above screen are Chart of Accounts : We have key here the COA ID for which we are making account determination. G/L Account: This field contains the number of the G/L account to which the transaction figures are updated Currency: Currency key for amounts in the system. Currency Type: The currency type is required to be able to transfer amounts between different components of the R/3 System such as Financial Accounting and Controlling (using interfaces). These are the currency types allowed for valuation, sorted lists and other closing operations. Exchange rate difference realized Loss: Local Account for Realized Exchange Rate Losses. Losses resulting from exchange rate fluctuation are posted when clearing open items in foreign currency. Exchange rate difference realized Gain: Account for losses from realized exchange rate fluctuations. Losses resulting from exchange rate fluctuation are posted when clearing open items in foreign currency. Valuation Val. Loss 1 Account for losses from the foreign currency valuation of open items. Valuation Val. Gain 1 Account for gains from the foreign currency valuation of open items. Bal. Sheet Adj. 1 Account to which the receivables and/or payables adjustment is posted during the foreign currency valuation of open items. Translation Loss : Account for posting the translation when clearing open items which are posted in foreign currency. A posting is made to this account if a loss was to be posted previously during a foreign currency valuation in the first valuation area. The amount which was posted as a loss is now posted to this account. The offsetting entry is made to a translation clearing account. Via the translation account, the valuation differences which apply to open items cleared within one period can be seen.
Accounts Receivable [FI-AR] Bal.Shett Adj. Loss : Account for clearing the translation when clearing open items which are posted in foreign currency.. The account is used as a clearing account if a translation which is based on a gain in the first valuation area is posted. Translation Gain : Account for posting the translation when clearing open items which are posted in foreign currency. A posting is made to this account if a gain was to be posted previously during a foreign currency valuation in the first valuation area. The amount which was posted as a gain is now posted to this account. The offsetting entry is made to a translation clearing account. Via the translation account, the valuation differences which apply to open items cleared within one period can be seen. Bal.Sheet Adj. Gain: Account for clearing the translation when clearing open items which are posted in foreign currency. The account is used as a clearing account if a translation which is based on a loss in the first valuation area is posted.
2.11 Closing Procedures Reserve for Bad Debts 2.11.1 Define Methods OBA4 T Code OB04 Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Closing Valuate Reserve for Bad Debt Prepare Define Methods Purpose : In this activity, we define a method for the following postings:
Transfer posting of doubtful receivables The report that carries out the transfer posting automatically determines the receivables to be transferred and transfers them to a special G/L account. The report determines the receivables to be transferred by means of the first period we specify for the method. The special G/L account for doubtful receivables is determined by means of the special G/L method.
Posting the provision for doubtful receivables For each method, enter four further periods in months and a percentage rate. The report that posts the provision for doubtful receivables determines, by means of the period, how high the posted provision amounts are. The report posts the amount to an account for the allocation of funds.
Accounts Receivable [FI-AR] Customization: To carry out the activity, choose one of the above navigation options. Click on New Entries Maintain the screen as given below
Click on
to save.
The above screen contain the following fields Prov: Using the provision method, we determine the timespan by which customer open items are posted to a special G/L account. The method allows the entry of a maximum of four intervals. The percentage rate of the provision to be posted can be determined for each interval. Per: Transfer Posting Period in Months. If a receivable is due longer than the transfer posting period, then the due item is transferred to a special G/L account. We specify the transfer posting period in months. Mo: Here we enter the number of months after the due date of the receivable. If the due date according to the entry is reached or exceeded, a provision is set up with the selected percentage rate. Perc 1,2,3,4 : After the deadline has expired, a provision is set up according to the percentage rate specified here. 2.11.2 Define Accounts for Reserve for Bad Debt - OBXD T Code OBXD Path IMG Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Closing Valuate Reserve for Bad Debt Prepare Define Methods
Purpose: In this activity, we specify the accounts for posting the reserve for bad debt. The report which posts these reserves automatically determines the accounts to be posted to on the basis of our entries in this table. For each reserve method, specify the account for allocation of funds and the reserve account. Customization: To carry out the activity, choose one of the above navigation options. Key Chart of Account ID . 9999
Accounts Receivable [FI-AR] Maintain the screen as follows
Click on
to save.
Click on Account Maintain the screen as shown below
Click on
to save.
With the above steps, we end our configuration of Accounts Receivable. In our next part we will study, rest of the things
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Accounts Receivable [FI-AR] A COMPLETE GUIDE TO

DEFINATIONS, CUSTOMIZATION STEPS, USER MANUAL TRANSACTION CODES, FAQS

Prepared by S. N. Padhi, ACA Reviewed by: Experienced Consultants

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Accounts Receivable [FI-AR]

This eBook is dedicated to my beloved wife Mrs. Sharmistha Padhi

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Accounts Receivable [FI-AR]

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Accounts Receivable [FI-AR]

Glossary: Customer Account Groups:

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Accounts Receivable [FI-AR] 1.5 Dunning areas:

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Accounts Receivable [FI-AR]

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Update the screen as follows

to insert the above number range.

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Accounts Receivable [FI-AR] Click on to save.

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Accounts Receivable [FI-AR] 2.2 Business Transaction- Outgoing Invoices:

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Accounts Receivable [FI-AR]

Accounts Receivable [FI-AR]

Accounts Receivable [FI-AR]

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Accounts Receivable [FI-AR]

Accounts Receivable [FI-AR]

Business Transactions Incoming Payments Define Accounts for

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Accounts Receivable [FI-AR]

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Accounts Receivable [FI-AR]

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Accounts Receivable [FI-AR]

Accounts Receivable [FI-AR]

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Accounts Receivable [FI-AR]

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Accounts Receivable [FI-AR]

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Accounts Receivable [FI-AR]

Accounts Receivable [FI-AR]

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Accounts Receivable [FI-AR]

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Accounts Receivable [FI-AR]

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Accounts Receivable [FI-AR]

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Maintain the screen as follows

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Press F3 come back to main screen of Dunning Procedure

Maintain the screen as follows