The Accounts Receivable application component records and administers accounting data of all customers. It is also an internal part of Sales Management.
All postings in Accounting Receivable are also recorded directly in the General Ledger. Different G/L accounts are updated depending on the transaction involved (for ex: Receivables, Down payments, and Bill of exchange). The system contains a range of tools that you can use to monitor open items, such as account analysis,alarm reports,due date lists, and a flexible dunning program. The correspondence linked to these tools can be individually formulated to suit your requirements. This is also the case for payment notices,balance confirmations,account statements, and interest calculations, incoming payments can be assigned to due receivables using user-friendly screen functions or by electronic means such as EDI and Data telecommunications.
The payment program can automatically cay out direct debiting and down payments.
There are a range of tools available for documenting the transactions that occur in accounts receivable, including balance lists, journals, balance audit trails, and other standard reports. When drawing up financial statements, the items in foreign currency are revalued, customers who are also vendors are listed, and the balances on the accounts are sorted by remaining life.
Accounts receivable is not only one of the branches of accounting that forms the basis of adequate and orderly accounting. it also provides the data required for effective credit management, (as a result of its close integration with the sales and distribution component), as well as important information for the optimization of liquidity planning, (Through its link to cash management).
To process receivables-related dispute cases, for Ex: Payment reductions, you can use the components SAP Dispute Management.
⇒ Customer Debit: 01
⇒ Customer Credit: 15
⇒ Sundry Debtors Bill of Exchange debit: 09
⇒ Sundry Debtors Bill of Exchange credit: 19
DR- Customer Invoice
DZ- Customer Payment
DA- Customer Document ( Transfers/Reversals)
AR- (Customer Accounts) is a Subsidiary Ledger of sundry debtors & sundry debtors is a reconciliation account under Current assets.
Basic settings for Accounts Receivables:
1) Creation of Customer A/c Groups like FI Customers and SD Customers with Reconciliation Account Field mandatory – OBD2
2) Creation of number ranges for Customer Accounts – XDN1
3) Assign Number Ranges to Customer Account Groups – OBAR
4) Creation of GL Master
⇒ Sundry Debtors – FS00
⇒ Sales Accounts – FS00
5) Creation of Customer Master – XD01
6) Document types and Number Ranges for KR, KZ & KA – OBA7
7) Customer Invoice Posting – F-22 & FB70
8) Display The Customer Line items – FBL5N
Step by Step:
Create an Invoice: Document Header
Create an Invoice: Notes
Create an invoice : complete line item and park
Post an parked invoice:
Post an invoice : approver viewing attachment
Display an invoice
Print an invoice : request the printing
Print an invoice
Enter an invoice using the upload program
• Credit Memo to be processed needs two individuals
– Credit Memo Processor and Credit Memo Approver
• Park (FV75) – Post (FBV0)
– Credit Memo Processor will not have access to the POST transaction
•One single Dunning Procedure LAUSD
–This will trigger a Dunning notice for over due items for one (1) day.
•An Aging Report is available
• Write Off
– Write-off will go directly in the Customer Account.
– There is no allowance for Bad Debts set-up
– Entry is just a reversal of the original invoice
– If a customer subsequently pays a written-off invoice, District will reinstate the invoice and then record the payment against a reinstated receivable
– If payment is received in the following fiscal year, record as revenue.
– If material a review by the District controller is required.
• Write off and Recovery will be noted under document type DW
• Receipt Process
• For Cash in County transaction –PeopleSoft to SAP Interface
–Create Manual Check Deposits: Perform this procedure whenever there is cash or check received on hand.
•Under Or Over Payment
–Situation 1 –Invoice is for $500. Received $499 underpayment. Collect the $499, do not send the check back. Credit the customer for $499 and doa partial payment against the $500 invoice. Do not issue a $1 write-off at this time.
–Situation 2 –Invoice is for $900. Received $901 overpayment. Collect the $900, do not send the check back. Credit the customer for $901 and apply $900 to the invoice of the $900. Do not issue a $1 Refund at this time.
Create Customer Invoice FB70
Booking Customer Invoices F-22
Incoming customer payment F028
Credit Memo FB75
Credit Memo-General F-27
Payment Fast Entry FB-26
Park/Edit Invoice FV70
Invoice Parking-General F-64
Request Down payment F-37
Down Payment F-29
Clearing Down Payment F-39
Request Bill of Exchange FBW1
Payment Request F-59
Create Payment Advice FBE1
Clearing Open Line items in the GL Account F-03
Refund of Advance to Customer F-31/F-18
Clear Customer Invoice with Advances F-32
Reversal of Noted Entries FB08
Payment Advice Overview S_ALR_87012201
Customer Payment Advice S_ALR_87012200
Payment Advice Overview (Header and Item Data) S_ALR_87012203
Customer Payment Advice S_ALR_87012202
Bill of Exchange List S_ALR_87012208
Extended Bill of Exchange List with ABAP List Viewer S_ALR_87012209
Generic Withholding Tax Reporting S_P00_07000134
If you have any questions make a comment and write your Doubt, I ll try to clear it 🙂