Accounts Payable Processing in SAP

The application component in financial accounting is accounts payable and accounts receivables. The longevity of an organization more or less will depend on their abilities to manage the accounts payable and receivables of the organization. There is no organization without these words. Hence these components have significant role in finance module. Similarly even in sap also the same was dealt accurately. While taking up the project we must understand the various business processes involved in this area.

Furthermore we have to discuss with the company team regarding their terms and conditions while coming into a contract for either supply of goods or sale of goods. We must have thorough knowledge in dealing with accounts payable and accounts receivables functionality. Generally the sundry creditors are called accounts payable in sap environment and sundry debtors are called accounts receivables.

Accounts Payable Processing in SAP

In that process first we understand the functionalists involved in accounts payable. The accounts payable accounting is called as Sub Ledger Accounting. Because the business transactions are carried out in the individual accounts of the Vendor Accounts. However the updating will be taken in both the individual vendor accounts and balance sheet accounts.

The real time updating will be done through the settings made in general ledger master while creation of account. Hence these accounts payable account is called as Reconciliation account. The reconciliation will be done in real time automatically only. No manual intervention is required. To take the customization of various activities we have to understand how the purchase of raw material will be done in the organization.

In the process of configuration we first segregate the all vendors into different groups. Because we have to identify them easily. There may be vendors in respect of supply of raw materials and extending services. We make them as different, to identify them correctly. Hence the first configuration of accounts payable concept is

To Define Vendor Groups with Screen Layout (Vendors)

Path: SPRO-RIMG-FA-accounts receivable and accounts payable –vendor accounts-master data-preparations for creating vendor master data-define Account groups with screen layout (vendors)

Transaction Code: OBD3

• Click on New Entries Button
• Give 4 character code numbers for the account group: 200M
• Give the description: material vendor group: 2006
• Save it.

To set the field status for vendor master record double clicks on general Data. Ensure all the fields are optional again double click on company code data ensure all the fields are optional only.

The general data is common for all organization units and all company codes dealing with the vendor. The company code data is specifically has to be maintained within the company code. In the same manner the purchasing organization details are also independent purchasing organisation.

We have to set separately with the vendor. However, these are all inter linked and treated as master data maintenance at centrally. If any vendor is not connected with the purchasing organization, we need not define purchasing organization data. However vice versa is not possible.

Also See: What is Cross Company Code Clearing Accounts in SAP?