sap fico (ap) procurement cycle process

SAP FICO (AP) Procurement Cycle Process.

Prerequisites to be done:

• 1.Business area creation in FI-GL• 2. GL account creation for Inventory a/c in FI-

GL• 3. Vendor Group and Master data creation in

FI-AP• 4.House Bank Creation in FI-AP

Procurement Cycle in FI-AP.

• Step 1. Purchase Requisition in MM Module• Step 2. Purchase Order in MM Module• Step 3. Goods Receipt/ Invoice Receipt in MM

Module• Step 4. Invoice posting• Step 5. Vendor payment Posting

Purchase Requisition:

• The purchase requisition in the internal document and identifies a demand for a product in within the company. It can be created both manually and automatically. There is no accounting document generated, since it is a document of request raised internally.

Purchase Order:

• Purchase order is the order raised by the company to the vendors to place an order as required from the PR. It is a legal contract between the buyer and the vendor.

GR/IR Account:

• GR/IR account is the provisional account for recording the transaction. For Instance ; if goods delivered first and invoice received latter or may be the case where the invoice is received first and goods delivered latter. In the above case the transaction is recorded in the GR/IR account and subsequently the invoice is recorded when received.

When GR/IR account is posted the account entry,

• Inventory A/c ---------------Dr

• GR/IR A/c ------------------------Cr

Vendor Invoice recording: When Invoice is posted the account entry,T-Code : FB60

• GR/IR A/c --------------------Dr

• Vendor A/c --------------------Cr

Payment made : When Payment made in FI the account entry,T-Code F-53

• Vendor A/c -------------------Dr

• Bank Clearing A/c -----------------Cr

• SAP FICO (AR)Sales Cycle Process.

Prerequisites to be done:

• 1.Business area creation in FI-GL• 2. GL account creation for sales a/c in FI-GL• 3. Customer Group and Master data creation

in FI-AR• 4.House Bank Creation in FI-AP

Sales Cycle in FI-AR.

• Step 1. Sales order SD Module• Step 2. Goods Receipt/ Invoice Receipt • Step 3. Sales Invoice recording • Step 4. Payment Received recording in FI

module

Sales order:

• SO contains the information like Customer name, Product, Quantity and so on as ordered by the customer.

GR/IR Account:

• GR/IR account is the provisional account for recording the transaction. For Instance ; if goods delivered first and invoice received latter or may be the case where the invoice is received first and goods delivered latter. In the above case the transaction is recorded in the GR/IR account and subsequently the invoice is recorded when received.

When GR/IR account is posted the account entry,• GR/IR A/c ---------------Dr

• Cost of Goods Sold A/c----------Cr

Invoice Recording: T-Code : FB70

• Sales/Revenue A/c -------Dr

• Customer A/c ----------------Cr

Payment received:T-Code : F-28

• Bank Clearing A/c ---------Dr

• Customer A/c --------------Cr