Atlas Finance Accounts Payable Training up to date as of R3.4 P7 2014

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SAP contains a report to list purchase orders by vendor to compare

goods receipt quantities against invoice receipt quantities thus

showing the variance between the two and the amount sitting on

GRIR.

This report should be used in conjunction with analysis carried out in

the G/L to investigate uncleared items on GRIR accounts.

The report is a good tool to identify where old supplier invoices are

either outstanding and also where goods receipts have perhaps not

been entered

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Use this report to check goods and invoice receipts when the purchasing

documents show some discrepancy

Drill down is available to review the individual documents (goods receipt,

purchase order/service entry, or invoice)

Those items in red should be investigated, where the Invoiced quantity >

Received quantity. This means that budgets have not yet been charged for

amounts

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Information Systems>General Report Selection>Materials

Management>Inventory Management

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The GRIR account only relates to quantity booked for the goods receipt and

the invoice

Any quantity differences between Goods Receipt and Invoice Receipt need

to be cleared from the GRIR account

A process for GRIR clearing should be designed by Units but the account

should be checked EVERY Period. This process should include the

following items as examples:

Who is responsible for clearing the GRIR?

Who is responsible for highlighting GRIR difference?

When will GRIR clearing take place each Period?

Is there a certain age of item where the GRIR will be cleared

automatically?

How is regular checking of the GRIR account built into the AP Role?

This slide shows an example where a goods receipt has been posted

but there is no invoice

The PO is for a quantity of 5 and this quantity can be seen on the GR

on the Purchase Order History tab

The screenshots come from MR11 and ME23N

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If this good receipt was perhaps done in error it can be cleared

through GRIR Maintenance referred to as Account Maintenance in

the system

Account Maintenance posts a KP document and can be seen in the

PO history tab. In this view there will be no value just a quantity

booking

When account maintenance takes place in the scenario where the

goods receipt is greater than the invoice the following posting takes

place in FI:

DR GRIR Account

CR P&L expense account (this is dependent on the type of PO

and the account assignment

In Controlling the P&L Expense CR will also be posted to a Cost

Centre or an alternative object depending on the account assignment

of the PO

Effectively this posting reverses the GR posting to overcome the

delivery surplus

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This slide shows a more complicated scenario where there are

multiple invoices and goods receipts

In this case a quantity of 12 has been goods receipted and a quantity

of 4 has been invoiced

The quantity difference on the GRIR account is therefore 8

The screenshots come from MR11 and ME23N

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If account maintenance was to take place against this PO what would

happen:

What document type would be posted?

What quantity would be posted?

What value would be posted?

Which account would be debited?

Which account would be credited?

Why?

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This slide shows the posting that takes place based on the example

shown on the previous slides

When the GRIR clearing is posted the same postings take place in

FI:

DR GRIR Account for quantity of 8 and a value of 2,640

CR P&L expense account for quantity of 8 and a value of 2,640

In controlling this is also posted to a Cost Centre, which is

determined by the account assignment on the PO

To answer the questions on the previous slide:

What document type would be posted? KP

What quantity would be posted? 8

What value would be posted? 2640

Which account would be debited? GRIR

Which account would be credited? P&L Expense

Why? Effectively the P&L has been overcharged

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This slide shows an example where an invoices has been posted but

the PO is awaiting a goods receipt

The PO is for a quantity of 1 and this quantity can be seen on the

invoice posting on the Purchase Order History tab

The screenshots come from MR11 and ME23N

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In order to effectively post a goods receipt and clear the GRIR

account, Account Maintenance can be carried out

Account Maintenance posts a KP document and can be seen in the

PO history tab. In this view there will be no value just a quantity

booking

When account maintenance takes place in the scenario where the

invoice is greater than the goods receipt the following posting takes

place in FI:

CR GRIR Account

DR P&L expense account (this is dependent on the type of PO

and the account assignment

In Controlling the P&L Expense DR will also be posted to a Cost

Centre or an alternative object depending on the account assignment

of the PO

Effectively this posting creates a GR posting to overcome the invoice

surplus

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Account Maintenance is posted using MR11

This should be used when there is an outstanding balance in the GRIR

account and it will cannot be automatically cleared

MR11 reads the MM purchase order history table (EKBE) to allow

maintenance of the GRIR account

The PO history table stores all of the events which have occurred to the

PO/Schedule Agreement during its life including the two most important

events: goods receipt and invoice receipt

GRIR maintenance is another type of event in the purchase order history

GRIR maintenance is used to complete the purchase order history only if

there are quantity (not amount) differences in the purchase order

Any GRIR imbalance stemming from quantity difference between PO and

Invoice can be cleared through MR11 if:

The quantity received is larger than the quantity invoiced and no more

invoices are to be received

The quantity invoiced is larger than the quantity received and no more

goods are to be received

Goods have been received, but invoice has been yet to received and no

invoice is expected any more

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Logistics>Materials Management>Logistics Invoice Verification>GRIR

Account Maintenance

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If an account maintenance posting is posted in error with MR11 and needs

to be cancelled transaction MR11SHOW can be used

When the document is reversed:

The account maintenance document is cancelled

The account maintenance document is updated in the purchase order

history

As a result, the original difference on the GRIR clearing account is

restored

The GRIR clearing account will need to be cleared again by means of more

goods receipts, invoices or by clearing it manually again

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Logistics>Materials Management>Logistics Invoice Verification>GRIR

Account Maintenance

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There are two ways to enter an AP invoice into SAP, the selection of which

is dependent on whether the invoice relates to a PO or not.

PO Related can be posted using:

Park Logistics Invoice Verification - MIR7

Logistics Invoice Verification MIRO

Non-PO Related can be posted using:

Park Vendor Invoice - FV60

Vendor Invoice Posting - FB60

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Invoice postings without reference to a PO should only happen in a few exceptional circumstances Normal business process requires that purchases are made using purchase orders to maintain the appropriate controls FI postings can therefore only made in a few exceptions for example:

Government Mandatory Payments Purchasing Card spend at allowed levels in allowed categories Invoices approved by auxiliary systems where the approval process has been signed off by Finance and limited to:

- Travel Expenses - Payroll - Trade Expenditure, - Serengeti Legal Expenses

These exceptions are highlighted in the AP golden Process Section

P-150-150

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Preliminary posting or parking allows Users to enter data and store it without posting it. This allows you time to ensure that the analysis for the charge is correct. A document is parked when a user cannot finish the document (invoice or credit memo) or needs to gather further information before posting the document

Parking a document assigns a document number to the transaction without updating the account transactions or totals Parked documents can have any field on the document changed or updated, which allows for another user to verify that the right accounts were being used, etc. Parked documents can be changed as often as required When no further changes are required, it is possible to post the parked document. Only then does the system carry out the normal account movements and make the necessary updates

When a parked document is posted, the document number does not change.

document it is simply suspended and no accounting or other update takes place. Held documents are assigned a manual document reference. The advantage of parking documents is that you can evaluate the data in the documents online for reporting purposes from the moment they are parked, rather than having to wait until they have been completed and posted. The preliminary posting function can be of great advantage if:

Users are interrupted when entering an invoice, this saves duplicate data entry Users wish to clear up some questions before you post an invoice. Users wish to split the invoice authorisation process. One employee can, for example, park an invoice without checking it, while another carries out the actual checks and posts the document after making any necessary corrections Depending on the G/L account it may require a cost object assignment e.g.; Cost Centre, Internal order

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To post a parked document, select the parked document from the list of

documents, then the parked transaction is displayed.

To make changes and re-park the document, types the changes and select

the Save as Completed button.

To post the document, select the Post button. Once the document is posted,

the amounts are update the account balances.

A posted document has the same document number as the parked

document.

Select the Simulate button to see the entire document before posting.

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Accounting>Financial Accounting>Accounts Payable>Document

Entry>Document Parking

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Accounting>Financial Accounting>Accounts Payable>Document

Entry>Document Parking

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FBV3 can be used to display one or many documents.

If the document number, company code, and year of the parked document

is known, select Enter to open the document for completion

If the document number of the parked document is not know, select the List

button and use the search criteria. This search report is used to find the

document number of the parked document

From the list of parked documents, users can review, alter, and post each

document individually.

To display a document double click to move to the Display Parked

Document screen FV60.

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Accounting>Financial Accounting>Accounts Payable>

Document>Parked Documents

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FBV0 can be used to post one or many documents.

If the document number, company code, and year of the parked document

is known, select Enter to open the document for completion.

If the document number of the parked document is not know, select the List

button and use the search criteria.

The search report is used to find the document number of the parked

document

Status of the document can be checked using the Check icon status then

appears in the status column

Parked documents can be highlighted/selected to be posted

From the list of parked documents, Users can review, alter, and post each

document individually.

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Accounting>Financial Accounting>Accounts Payable>

Document>Parked Documents

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Transaction Select either Invoice or Credit Memo to indicate the type of transaction. Header:

Basic Data tab fields: Company Code - SAP remembers the last used company code; you must verify this field. If the wrong company code is displayed, select the Company Code button or use the menu path: Edit > Change Company Code and type the new company code.

Vendor The organization that sent the invoice. Invoice date determine the payment due date for this invoice. The Automatic Payment program uses the Invoice Date field to determine which payment run the invoice will be included in. Posting Date - Determines the period to post the invoice to and defaults to system date (required). Reference Amount The total amount of the invoice including taxes into this field. Currency This field is not labeled but is to the right of the Amount field. Indicate the currency that the payment is to be issued in. Tax amount The amount of the taxes for this invoice. Tax code This field is not labeled, but is to the right of the Tax Amount field. The tax code controls whether or not the item is to be taxed and at what rate. For VAT type taxes, the tax code entered assists in calculating the tax amount and control where it is posted in the GL. Text Enter a description of the invoice. Details tab fields: Exchange Rate enter a specific exchange rate for foreign currency journal entries. Leave blank to default the rate from the exchange rate table. Translation Date used to select a specific exchange rate from the exchange rate table. Calculate Tax - select this check box to have taxes calculated automatically at the time of posting. Line Item Fields: Status (first column) indicates the status of the line. A checkmark ( ) the line is ok. G/L Acct The General Ledger account to use in recording the expense portion for the vendor invoice. Debit/Credit Indicator This determines how the item posts to the expense account. For AP invoices, the default is debit. When entering a credit memo, the default is credit. Amount The amount for this line (required). SAP enters an amount to balance the entry Tax Code - Use this field to indicate if the transaction is tax relevant. Required only if a tax category has been specified for the

Tax Jurisdiction - This field represents how the taxes are calculated for the US by indicating the state and local tax areas (optional). Value Date - used for Foreign Currency valuation date (optional). Text This field is used to enter an explanation of the line entry about the transaction. This helps when trying to follow an auditing trail at a later date.

Type + to copy the last text entered. Additional Accounting Information Cost Center, Internal Order, or Profitability Segment fields are to be completed as required.

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Payment tab fields: Baseline date this date is used with the payment terms to calculate the due date. Due on This date is a function of the baseline date and payment terms and controls when this invoice will be paid by the Automatic Payment program. Payment terms Payment terms are agreed upon with the vendor and entered into the vendor master record. However, this field can be overwritten and new one time payment terms entered that are only good for this document. Payment Method A code to indicate the form the payment is to be issued. If a vendor accepts multiple forms of payment (check, wire, etc.) then a particular method can be selected for this item. If the field is blank, the vendor is paid based on a valid payment run using a payment method acceptable to the vendor. For example if the vendor can be paid by check or wire and this field is left blank, the payment run that is run first (check or wires) will pick up the item and pay it. Payment Method Supplement This field controls the grouping of payments into specific categories that may have additional checks assigned to it. For example, a company could want checks over $100,000 to be printed separately from lesser amount checks so they can be routed for an additional signature. Payment block Select this field to prevent payment of this invoice. A payment block must be removed from an invoice before it can be paid.

Details tab fields: G/L the reconciliation account for this vendor. This is the GL account where the transaction figures are recorded. The other fields on this tab are not used at this time.

Tax tab fields: Tax doc currency The amount of the tax on the invoice that was entered on the Basic Data tab. This tab allows the user to actually divide the tax amount over multiple line items of an invoice (provided they have the same tax code). Tax code The tax code that was specified on the Basic Data tab.

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Notes tab fields: Item Long text A free-form text area for additional information about the invoice. The text fields on the Basic Data tab, and the Line Item tab are limited in the number of characters that can be entered. More text can be entered here, including text which has been cut and pasted from Word.

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If this message appears, the user review the indicated document number

and verify that the invoice is not being entered again.

There is an internal review mechanism to warn a user invoice entry matches

with an existing entry

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When an FI invoice is posted the following posting takes place in FI:

CR AP Reconciliation Account 953001

DR P&L Expense

In Controlling the P&L expense posting will be against a controlling

object such as a Cost Centre, IO or WBS

The CR against the AP reconciliation account is simultaneously

posted to the AP subledger

An FI invoice has a document type of KN

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It is possible to enter an invoice (or a credit memo) without posting it and simply

"park" it. The system does not in this case make any postings

A parked document can be changed as often as required. When data is added or

changed, the changes are noted by the system. When no further changes are

required, it is possible to post the parked document. Only then does the system

carry out the normal account movements and make the necessary updates

Once the documents are posted GL Accounts and Vendor Line Items are updated

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Accounting>Financial Accounting>Accounts Payable>Document Entry

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Mass upload of FI invoices

Mars Add Ons>Finance>Accounts Payable

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When an FI credit memo is posted the following posting takes place

in FI:

CR P&L Expense

DR AP Reconciliation Account 953001

In Controlling the P&L expense posting will be against a controlling

object such as a Cost Centre, IO or WBS

The DR against the AP reconciliation account is simultaneously

posted to the AP subledger

An FI Credit memo has a document type of KG

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Accounting>Financial Accounting>Accounts Payable>Document Entry

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Accounting>Financial Accounting>Accounts Payable>Account

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Posted documents are completed documents that have a document number

and that update the transaction figures and account amounts in SAP

Only a few fields can be changed of a posted document

Need the document number, company code, and year; can search for

document number by Document Type (Vendor Invoice) and/or user ID

To view the original document, select the menu path: Environment >

Document environment > Original document

To view additional accounting documents, select the menu path:

Environment > Document environment > Accounting documents

To edit the Document Header, choose Extras > Document Header > Goto >

Document header.

You can only change two Document Header fields: Reference and

Document header text.

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Accounting>Financial Accounting>Accounts Payable>Document

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If an invoice is posted that has a blocking reason, the field Payment block is filled

in the vendor line item of the invoice document. Financial Accounting is then

unable to settle the invoice

A blocked invoice must be released for payment in a separate step, possibly after

verifying with the purchasing department or vendor

In this step, the payment block A is deleted using FB02

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Accounting>Financial Accounting>Accounts Payable>Document

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See the before and after field values for a specific document

Must know company code, year, and document number (no list button)

Use the Display a Document (FB03) screen to find the document number

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Accounting>Financial Accounting>Accounts Payable>Document

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The document type classifies the accounting documents. It is noted in the

document header.

The document type specifies the following, among other things:

Which account types can be posted in a document

Whether cash discounts are to be taken into account (for vendor

postings). The cash discount percentage rate is managed in the general

terms of payment in the vendor or customer master in Financial

Accounting.

Documents can be viewed, sorted and archived by document type.

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Once an entry has been posted in the system, the only way to change

critical fields, is to reverse the document

The system generates a reversing document that posts the proper reversing

debit and credit amounts.

If you do not make an entry in the Reverse document posting date field or

Reverse Document Posting Period field, the system uses today's date or the

current posting period.

The program generates a list of all the documents which can or cannot be

reversed or have already been reversed.

The period of the original document must be open to post a reversing

document. If the period is not open, you can overwrite the Posting Date field

using a date in the current period.

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Accounting>Financial Accounting>Accounts

Payable>Document>Reverse

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After the invoice has been posted, the document appears as an open item on the

vendor account

This means that the open item, once it becomes due for payment, can be picked

for the payment proposal list and the subsequent payment run

The payment run therefore:

Selects invoices for payment based on the payment terms in the vendor

master or purchase order

Generates payment for released invoices.

Updates accounting information

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The payment program has the following functions:

Automatically selects the open items to be paid and the exceptions, such as

blocked items

Creates payment lists and logs

Carries out payment using the proposal list.

There are 3 steps in the Payment Program Flow:

1. Proposal Run

The proposal run checks the accounts and documents specified in the

parameters for due items

The proposal list reviews Vendor open items that are due to be paid and

proposes them for the payment run

2. Payment Run

The payment run includes only the open items contained in the proposal

list.

The payment program posts documents

3. Generation of payment transfer medium:

The payment program provides the data for the form printout and for

creating the data carriers, the payment advice notes and the payment

summaries.

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Before the payment program can be used the following items need to be defined:

Vendor bank accounts details The required payment methods are completed on the Vendor Master Data The necessary payment forms are set up

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The payment proposal is run first, in order to generate proposal data that can be

edited before the actual payment run.

The proposal can be executed by the AP Clerk

The payment proposal can be run in the background or immediately.

The following parameters need to be entered for the payment proposal. The

parameters represent the selection criteria of the vendors to be paid:

Run Date = today's date

Identification = Payment Run ID usually includes the day

The payment status shows you the current state of the payment proposal job.

Document entered to = the date in which you want to pay vendors up to

Company Code = Company Code to be included in the payment run

Payment Methods = payment methods to be included in the proposal list

Next posting date = next payment run

Vendors Vendor to be included in the payment proposal

The Document Entered To field and the Next P/Date field determine which

invoices are selected for payment by the proposal run

The due date of the items is always determined via the baseline date and the

terms of payment in the open items.

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To create the proposal run click on the proposal button The proposal run:

Checks the accounts and documents specified in the parameters for due items Groups due items for payment Selects the relevant payment methods, house banks, and partner banks

The box that follows shows that the payment proposal can be started immediately If the Create Payment Medium check box is not displayed, the Printout/Data Medium tab was not completed during the Parameters step. Press the Enter key and to receive two messages: Parameters have been entered and Proposal is running. Continue to press the Enter key or select the Status button to monitor the status of the payment proposal. When the message Payment Proposal has been created displays, the proposal is completed. The main screen of the Automatic Payment Transactions program is the Status screen. It indicates the status of each step: not yet started, created, in process, or completed. The first step involves maintaining the parameters, additional log values, and payment medium values.

The selection criteria fields on are on the Parameters tab. The parameters define which vendors and invoices the payment program includes in the automatic payment run. The Additional Log tab allows you to determine what information is printed on the log. The log is useful in troubleshooting why an invoice was or was not selected for a specific payment run. The Printout/Data Medium tab is used to specify the specific print program variants for the payment printout portion of this process.

Parameters tab key fields: Run Date The date on which the payments process is to be run (required). Identification - A user-defined identifier, typically your initials for the payment run (required).

Additional Log key fields: Select the Due Date check box - List all invoices for the due date check Select the Payment Method Selection In All Cases check box Lists all invoices that are selected based on the payment method of the payment run; this check box is usually only used when testing the payment run Select the Payment Method Selection If Not Successful check box Lists invoices that will not be paid in this proposal run because of the payment method of the payment run Select the Line Items Of The Payment Documents check box - All posted documents in the log are printed with the items Type in the account numbers for the vendors or customers that you want displayed in the log.

Data Medium tab key fields: For the payment programs indicate the variants specific for the company code. To view the variant, click the variant name and then click the MAINTAIN VARIANTS button

Indicates printer, paying company code, payment method, etc.

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When the payment proposal is created, the system creates the proposal list detailing the payments proposed. In addition to the proposal list the exception list can be displayed, which displays blocked items and all open items which the payment program did not propose for payment Any required editing can then take place The Payment proposal should be reviewed and checked to ensure the payments are appropriate

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