Accounts Payable(AP). ....................

End to End AP Process
The Accounts Payable (AP) process flow in SAP is a critical component of the Financial Accounting (FI) module. It involves managing the company's obligations to suppliers and vendors for goods and services received. Below is a detailed overview of the typical AP process flow in SAP

The Accounts Payable process flow in SAP is a comprehensive and systematic approach to managing vendor transactions, ensuring accurate financial reporting, and maintaining strong vendor relationships. By following these steps, organizations can effectively manage their payables, optimize cash flow, and ensure compliance with financial regulations. Understanding this process is essential for finance professionals working with SAP to manage accounts payable functions efficiently.

1. SAP FI Accounts Payable(AP)

2. Table of content Overview Sub Process Master data Invoice processing Payments Periodic processing Reporting

3. Overview Accounts Payable is  a submodule of SAP FI used to manage and record Accounting data for all the vendors . It handles vendor invoices, payments and other activities. Any postings made in Accounts Payable is updated in General Ledger as well.

4. Process flow Configuration: Define vendor account groups Maintain number ranges for vendors Assign number ranges to vendor account groups Define tolerance group for vendor/customer BP configuration: Define BP roles Define number ranges Define groupings and assign number ranges Master data synchronization: Set BP role category for direction BP to vendor Define BP role for direction vendor to BP Define number assignment for direction BP to vendor BP master creation Create GL account (Reconciliation account) Create BP master

5. Master data Account group will be maintained at 3 segments Genera Data Company code data Purchase Org data Create Change Block Delete

6. Master data: Structure General data Address Control data Payment transaction Company code data Account management Payment transactions Correspondence Purchase Organization Purchasing data Partner functions Client 100 Company code XXXX Purchasing Org: XXXX

7. Master data: Account groups Domestic vendors Import vendors Inter-Company vendors Foreign vendors One-time vendors

8. Invoice processing Business transactions included in in process: Sundry Invoice Credit memo Down payment ( Spl GL) Foreign currency Cancel/reverse document Clearing/transferring

9. Invoice posting: FB60

10. Terms of payment

11. Payment: F-53

12. Payment types Standard payment Partial payment Residual payment WH tax

13. Partial payment Vs Residual Payment Partial Payment: In Partial method system keeps/leaves the original invoice document as an open item until the full invoice payment is made Residual payment: In Residual method the system clears the original invoice document first and generate separate line item for the residual amount and show in the open item status

14. Vendor down payment Special GL indicators: F- Down payment request A- Down payment G- Security R- Retention

15. Post vendor down payment: F-47

16. Post vendor down payment: F-48

17. Posting in foreign currency -> For every company code there’s a company code currency -> Document is posted other than company code currency is processed as foreign currency

18. Vendor invoice credit memo Where goods are returned due to damaged of where the invoice was booked with higher amount to reduce the invoice value T code: FB65

19. Invoice reference field: Original invoice document number Due date= Base line date + No of days payment term key