5Accounts Payable Business Partners All supplier and/or all customer roles must be defined for a business partnerBuyFromSoldToShipFromShipToBusinessPartnerSupplierRolesCustomerRolesInvoiceFromInvoiceFromInvoiceToInvoiceToAccounts Payable Business PartnersPayToPayToPayByPayBy
6Accounts Payable Supplier Information Supplier Buy-From:BP StatusLanguageAreaLine of BusinessAddressOrder DiscountPurchase OfficeTerms of DeliverySupplier Invoice-From:BP StatusLanguageAddressCurrencyFinancial Supplier GroupStatement MethodTerms of PaymentPayment MethodSupplier Ship-From:BP StatusLanguageAddressWarehouseSupplier Pay-To:BP StatusLanguageAddressCurrencyBP BankAccounts Payable Supplier Information
7Accounts Payable Financial Supplier Groups Business PartnerAccounts Payable Financial Supplier GroupsFinancial Supplier GroupLedger Accounts
8Accounts Payable Financial Supplier Groups Financial Supplier Group Information:Control AccountCurrency Profit & LossPayment DifferencesDiscountsLate Payment SurchargesInvoice ReceiptsAnticipated PaymentsPrice DifferencesUnallocated PaymentsAdvance PaymentsOthersAccounts Payable Financial Supplier Groups
9Accounts Payable Purchase Order Steps Print Purchase OrderPN4Print Good Rec. NoteMaintain ReceiptsPrint ClaimsMaintain ApprovalsPrint Storage ListPrint Return NotesAccounts Payable Purchase Order StepsPrint Purchase Inv.Process DeliveredPurchase Orders
10Accounts Payable Cost Invoices Purpose: To process invoices for (non-inventory) items that were purchased without a purchase order.No longer separate Transaction Type in LN.Process Flow:Maintain TransactionPurchase Invoice HeaderPurchase Invoice LinesOptional:- Change terms of payment.- Attach payment schedule,then create transactionsfrom schedule.- Change authorization data.
11Accounts Payable Purchase Order Matching Receive and Authorize InvoiceRegister (Voucher) InvoicePurchase Invoice Matching:Automatic or Manual*Booking DifferenceApprove Price DifferenceApprove Invoice for PaymentOptional
12Accounts Payable Keywords ReceivedInvoice has been entered in “Maintain Received Purchase Invoices” sessionRegisteredInvoice can be a batch in “Maintain Transactions” session. Ledger accounts will then be assigned.MatchedInvoice has been matched to Purchase Order and/or Receipt in “Match/Approve Purchase Invoices with Orders” or “Match Receipts” sessions.ApprovedInvoice has been approved (authorized) in “Approve Purchase Invoices” sessionCanceledInvoice has been canceled in “Maintain Received Purchase Invoices” sessionAccounts Payable Keywords
13Accounts Payable Order Matching Differences Booking Difference:An additional invoiced amount.Recorded as an add-on cost.Enter G/L account and dimension code.For example, freight, insurance, and so on.Price Difference:A true Purchase Price Variance (PPV).The invoiced price is different than the PO price.G/L account price variance (within tolerances).G/L account result (outside tolerances).
14Finance Training Agenda – Accounts Payable Master Data
15Accounts Payable – Master Data Parameters Default Aging AnalysisTransaction Types for Currency DifferencesFinancial Customer GroupsProcurement CardsMatching CodesAccounts Payable – Master Data Parameters
17Finance Training Agenda – Accounts Payable Processing
18Accounts Payable – Processing Procurement Cards Procurement Card processing is focused on corporate houses, where the products are purchased using a corporate Procurement Card.The buyer is not necessarily a regular buyer of goods in the organization
19Accounts Payable – Processing Procurement Cards ManuallyManuallyElectronicallyElectronicallyPurchase RequisitionHoliday Inn hotel EUR 850Lufthansa EUR 1.400Holiday Inn hotel EUR 850Lufthansa EUR 1.400EUR 2.250MatchManuallyAutomatically
21Accounts Payable - Processing Received Invoices Purpose:To optionally preregister invoices without generating financial transactions and opening A/P items.Also includes authorization by different employees/departments for further A/P processing.
24Accounts Payable - Processing Assign Credit Notes to Invoices NowLaterOriginal InvoiceTransaction TypeOne Credit Noteto One InvoiceOne Credit Noteto Many InvoicesReduces the OpenBalance of the Invoice
33Finance Training Agenda – Cash Management OverviewMaster DataParametersPayment AuthorizationsBank Relations & MethodsCheck MasterElectronic Bank StatementsIRS 1099 ReportingProcessingPayments to SuppliersReceive Payments
34Finance Training Agenda – Accounts Payable Cash ManagementOverview
35Cash Management Remittance based on cash application Facilitates quick data entryDoes not restrict user with data consistency checksChecks are done when applying the remittance adviceReduction of cash application lead timeOptions to easily handle:Short paymentsOver payments
36Cash Management Uninterrupted supplier payment process Select Invoices for PaymentPayment Batch X1Uninterrupted Payment ProcessPayment CreatedFinancial PostingException ErrorPayment Batch X2
37Cash Management Uninterrupted payment/receipt process Payment Process DefaultsDevicesStarting CheckSenders IdentityFile IdentificationDevice for PaymentsPayment Process Defaultsby Bank/Payment Method
38Cash Management Uninterrupted payment process Error report during Payment ProcessDisplay of all exception errors per payment batch
39Cash Management Accounting for anticipated payments Check RunAtBank ReconciliationCheck received bySupplier and presented to Supplier’s BankCheck mailedCheck clears your BankL E D G E R E N T R I E SAnticipatedPaymentsCashClearingDebit CreditDebit CreditAnticipatedPaymentsCashClearingDebit CreditAccountsPayableCash
40Finance Training Agenda – Accounts Payable Cash ManagementMaster Data
41Cash Management – Master Data Parameters Payments by Company GroupSelect Only Finalized InvoicesPayment Differences Tolerances
42Cash Management – Master Data Payment Authorizations Used to limit check writing to selected user along with putting limits on size of payment.
43Cash Management – Master Data Payment / Receipt Methods Separate Methods for:ReceiptsPayments – ChecksPayments – ACHChecks Printing:Multiple ChecksSingle Check w/RemittanceSingle Check with overflowto Remittance.
44Cash Management – Master Data Check Master By Payment MethodCheck Status:Not UsedTest PrintVoidDamagedAnticipatedRejectedPaid
45Cash Management – Master Data Check Master ReasonsCan be Addedto PaymentsValid for 1099-MISCYes / No
46Finance Training Agenda Cash ManagementProcessing
47Cash Management – Processing Supplier Payments Based on Payment BatchesCreated by session and modifiable.Supplier total can not be negative.Can be used for EFT or ChecksUse separate batches for EFT and ChecksUse different payment Methods.Payments can be easily voided or rejected until cleared.Payments not in GLD until Posted.Automated clearing available with Bank Electronic file.Requires set up of EBS import specifications.Still requires manual processing for problem checks.
49Cash Management – Processing Select Invoices for Payment Create Batch to payMay be modifiedNot SelectedPrints a report of invoices NOT selected.Helpful Hint:You should print the “Not Selected” report to see what is still open.
50Cash Management – Processing Payment Advice Ability to modify Payment Batch before paying invoices.
51Cash Management – Processing Process Payments Compose PaymentAssign Banks to PaymentAudit PaymentsCreate Payment OrdersChecksACHPrint Remittance LettersPost Payments to GLDBy Payment Batch
52Cash Management – Processing IRS 1099 Reporting Generates output for filing1099s with IRSCan be either:PaperElectronic
53Cash Management – Processing Customer Payments Manual process uses same session as Journal VouchersUses “Cash” Transaction TypeNormally uses a “Checksums” for batch.Automated process available with Bank Electronic file.Requires set up of EBS import specifications.Used with LockboxesStill requires manual processing for unmatched receipts.
54Cash Management – Processing Customer Payments Physical Receipt of Cash, Check, etc.Manual Receipts$DirectDebitDirect DebitsORCancel Open InvoicesAdvance ReceiptsReceipts not specificallyAllocated to Open InvoicesNon-BP Related remittance forSundry Sales (Trans postedDirectly to GL)Business Partner’s bank is automatically charged for a selected sales invoice
55Cash Management – Processing Customer Payments To process manual bank reconciliation entries, available Transaction Types in the Bank Transactions (tfcmg2100m000) session include:Receipt Transaction - The Bank transaction type to process customer receipts and payments for credit notesState Bank & TrustS T A T E M E N T7/12/99 $DepositsChecks7/18/99 $7/23/99 $7/30/99 $7/01/997/06/997/07/997/08/997/09/99$$$$$$325432325438325447325448325449svc chg
56Cash Management – Processing Customer Payments Journal - The Bank transaction type to process charges directly to the general ledger (e.g., bank costs, bank service charges, and other sundry charges)Receipt Reconciliation - The Bank transaction type to process anticipated receipts actually received by the bankUnallocated Receipt - The Bank transaction type to process an unallocated receipt not linked to an invoice. These amounts can be assigned to open entries now (Assign Adv./Unall. Receipt under Specific), or at any later dateUnallocated Receipt - The Bank transaction type to process an unallocated receipt not linked to an invoice. These amounts can be assigned to open entries now (Assign Adv./Unall. Receipt under Specific), or at any later date
57Cash Management – Processing Customer Payments Unallocated and advance receipts:Create open cash amounts on the partners account afterthey have been reconciled to the bank statement.Advance receipt:Tax can be calculate tax on Advance Receipt.Unallocated receipt:Tax can NOT be calculated on Unallocated Receipt.Choosing which type of receipt to create depends on the businesssituation and the local tax legislation requirements.