1. At what level are the Customer & Vendor code stored in SAP?
The customer and Vendor code are at the client level. That means any company code can use the customer and Vendor code by extending the company code View.
2. How are vendor invoice payment made?
Manual payments without the use of any output medium like cheques etc
Automatic payment programme through cheques, Wire transfers, DME etc
3. How do you configure the Automatic payment program?
The following are the step to configure Automatic payment program
Co Code for payment transaction
- Define sending and paying Company Code.
- Tolerance days for payable
- Minimum % for cash discount
- Special GL transactions to be paid
Paying company code for payment transaction
- Minimum amount for outgoing payment
- No exchange rate diff
- Separate payment for each ref
- Bill /Exch payment
- Form for payment advice
Payment method per company
- Whether outgoing payment
- Check or Bank transfer or B/E
- Whether allowed for personal payment
- Required master data
- Doc Types
- Payment medium programs
- Currencies allowed
Payment method per company code for payment transactions
- Set up per payment method and Co.Code
- The minimum and maximum amount
- Whether payment per due day
Bank Optimization by bank group or by postal code or no optimization
- Whether Foreign currency allowed
- Customer/Vendor bank abroad allowed
- Attach the payment form check
- Whether payment advice required
Bank determination for Payment Transactions
Rank the house banks as per the following
- Payment Method, Currency and give them ranking no’s
- Setup house bank sub account (GL Code)
- Available amounts for each bank
- House Bank, Account id, Currency, Available amount
- Value date specification
4. Where do you attach the check payment form?
It is attached to the payment method per Company code.
Payment terms for customer master can be maintained at two places i.e. accounting view and The sale view.
5. Which is the payment term which actually gets defaulted in transaction?
The payment term in the accounting view of the customer master comes into picture if the transaction originates from the FI module. If an FI invoice is posted (FB70) to the customer,then the payment terms is defaulted from the accounting view of the Customer master.
The payment term in the sales view of the customer master comes into picture if the transaction originates from the SD module. A sales order is created in the SD module. The payment terms are defaulted in the sales order from the sales view of the Customer master.
Payment terms for Vendor master can be maintained at two places i.e. Accounting view & the Purchasing view
6. Which is the payment term which actually gets defaulted in transaction?
The payment term in the accounting view of the Vendor master comes into picture if the transaction originates from the FI module. If an FI invoice is posted (FB60) to the customer,then the payment terms is defaulted from the accounting view of the Vendor master.
The payment term in the sales view of the customer master comes into picture if the transaction originates from the MM module. A sales order is created in the MM module.
The payment terms are defaulted in the Purchase order from the Purchasing view of the Vendor Master.
7. Explain the entire process of Invoice verification from GR to Invoice verification in SAP with accounting entries?
A goods receipt in SAP for purchased material is prepared referring a Purchase Order.
When goods receipt is posted in SAP the accounting entry passed is:
Debit Inventory A/c
Credit GR/IR A/c
A GR/IR A/c is a provision a/c which provides for the liability of the purchase. The rates for the valuation of the material are picked up from the Purchase order.
When the invoice is booked in the system through Logistics invoice verification the entry passed is as follows:
Debit GR/IR A/c
8. How the Tolerances for Invoice verification defined?
The following are the instances of tolerances that can be defined for Logistics Invoice Verification.
- Small Differences
- Moving Average Price variances
- Quantity variances
- Price variances
Based on the client requirement, the transaction can be “BLOCKED” or Posted with a “Warning” in the event of the Tolerance being exceeded.
Tolerances are nothing but the differences between Invoice amount and Payment amount which is acceptable to the client.
9. How we can change the Reco account in the Vendor Master? If so, and how? What is the impact on the old balances?
Reconciliation account can be changed in the Vendor master provided that authority to change has been configured. Also any change you make to the reconciliation account is prospective and not retrospective. The old items & balances do not reflect the new account only the new transactions reflect the account.