1. Accounts Payable Transaction Processing
AP Transaction Processing

2. AP Transaction Processing
Course Objectives
Describe new SAP Accounts Payable terms (pg 4-9)
Give an overview of the AP process and invoice processing (pg 10-32)
Enter an incoming invoice – MIRO (pg 35-36)
Display invoice documents - MIR4/MIR6 (pg 37)
Park incoming invoices/credit memos – FV60/FV65 (pg 38)
Display parked documents/changes – FBV3/FBV5 (pg 39)
AP Transaction Processing

3. Accounts Payable Transaction Processing
Course Overview
Accounts Payable Transaction Processing
Overview
Enter an incoming invoice
Display an invoice document
View a list of invoice documents
Park incoming invoices
Park incoming credit memos
Display parked documents
AP Transaction Processing

4. AP Transaction Processing
New Terms
Vendor Master Record – contains information needed to service a vendor account and is divided into general, company code, and purchasing organization data.
Park a document – You can use document parking to enter and store (park) incomplete documents in the SAP System without carrying out extensive entry checks. Parked documents can be completed, checked, and then posted at a later date. When documents are parked, data is not updated.
Save (Park) as completed – After entering the document you can Save as completed. SAP will make sure all of the appropriate fields are filled in and that the document can be posted but the document will still be parked. The difference between Parking only and Save as complete is Save as complete will hit funds management (only posting will update the G/L).
AP Transaction Processing

5. AP Transaction Processing
New Terms
Header - Contains data that applies to the whole document such as vendor, document date, document type, document number, company code, and posting date.
Line Item - Contains the individual entries or postings (either debit or credit) made to each account. It includes an amount, an account number, the assignment to debits or credits and additional information depending on the transaction to be posted.
Posting Key - A two-digit numeric key that determines the way line items are posted. This key determines several factors including the:
Account type
Type of posting (debit or credit)
AP Transaction Processing

6. AP Transaction Processing
New Terms
Goods Receipt - a document that acknowledges the receipt of a material from a supplier. It is another of three documents in the three-way match that must be recognized in order for a vendor to be paid (along with purchase order and vendor’s invoice).
Service Entry Sheet - a document that acknowledges the receipt of a service from a supplier. It is another of three documents in the three-way match that must be recognized in order for a vendor to be paid (along with purchase order and vendor’s invoice).
AP Transaction Processing

7. AP Transaction Processing
New Terms
Purchase Order - a request from the purchasing organization to a vendor to provide a specified quantity of goods or services within a specified time. It provides the vendor with a reference document to link to the shipping (goods receipt) and invoicing (invoice verification) processes.
Blanket Purchase Order - This type of purchase order does NOT require a goods receipt/service entry sheet against it. It is normally issued for a specified value to be used against incoming invoices for a period of time. Invoices processed against a blanket purchase order will require a signature from the department to authorize payment.
AP Transaction Processing

8. AP Transaction Processing
New Terms
Invoice - A document (bill) prepared by the seller for services or to inform the buyer of the charge for product purchased and shipped by the seller. It includes content, price and quantity of goods.
Invoice Verification (3-way Match) - Invoice verification is the entry and checking of incoming vendor invoices. Vendor invoices are compared with the purchase order and the goods receipt, and are checked for content, price, and quantity.
AP Transaction Processing

9. AP Transaction Processing
AP Process Changes:
The Vendor master will be centrally maintained by the auditors office.
Employee advances and reimbursements will default to HR address.
Documents will be Parked as complete for non PO processed invoices and posted but blocked for payment for PO processed invoices regardless of where entered.
Invoices will be entered at source and parked as complete or posted with a payment block until the Accounts Payable auditors review for completeness, correctness, and posts or releases payment block to allow payment to be made.
AP Transaction Processing

10. Components of FI & CO The “Top” book of financial records Ledger
Manages vendor invoices
Manages responsibility accounting
The “Top” book of financial records
Manages customer billing
Manages fixed assets and depreciation
Accounts
Receivable FI
Controlling
Payable
Asset
Accounting CO
General
Ledger
AP Transaction Processing

11. What Goes Where HR/Materials Other Financial Modules
Management Modules
Other Financial Modules
FI Module
ACCOUNTS
RECEIVABLE
PAYABLE
ASSETS
FUNDS MANAGEMENT
PAYROLL
CONTROLLING
PURCHASING
GRANTS
MANAGEMENT
INVENTORY
MANAGEMENT
FI: FI represents the Financial General Ledger, Accounts Payable & Accounts Receivable sub-modules. It is primarily used for external financial statement reporting, vendor payments & credit/collection, & receivables management activities.
CO: CO represents the Controlling module. It is used for internal management reporting and planning. This module consists of primary cost elements (accounts); secondary cost elements (used to allocate costs); cost centers; internal orders (including Plant Maintenance orders); projects & WBS elements (work breakdown structure) elements (from Project SAP module); profit centers & profitability analysis.
Profit centers are updated from cost centers, internal orders, plant maintenance orders, and WBS elements.
Revenues from FI are posted directly to profit centers.
Profit centers can be grouped to facilitate reporting requirements.
Profit centers will be used for business unit profit & loss reporting.
Primary cost elements: These elements in CO correspond to the expense accounts in FI.
Secondary cost elements: These elements are unique to CO and are used to transfer costs among cost objects (internal orders, cost centers, Plant Maintenance orders, WBS elements, etc.).
Cost centers and internal orders can be grouped to facilitate reporting requirements and planning.
Costs can be transferred from cost centers to WBS elements, and other cost centers via distributions or assessments (using percentage splits, fixed amounts, statistical posting [such as meters read, etc.) Distributions move costs from one cost element to the same cost element in another cost objective. Assessments move cost from one cost objective to another cost objective using secondary cost element.
AP Transaction Processing

12. AP Transaction Processing
What is Master Data?
G/L Accounts
Customer Master
Vendor Master
Bank Master
Asset Master
Cost Centers
Internal Orders
Master Records
2000
1999
1998
Is shared across functional areas
A “Template” for transactional data
Master Data records remain in the central database over an extended period of time to be shared across modules and to eliminate data redundancy.
You need to create master data before transactions can be performed because it is the basis for all SAP R/3 transactions and every SAP R/3 transaction directly and indirectly uses one or several parts of a master record.
Core source of information
Common data basis for...
Accounting
Materials Management
Sales and Distribution
Centralized and application specific maintenance
Different views for organization-specific data
Provides default data for transactions used by all modules within SAP R/3
AP Transaction Processing

13. AP Transaction Processing
Vendor Master Record
General data
Company
code data
Purchasing org.
data
Vendor Name Vendor Address
Accounting info.
Payment terms
Purchasing data
AP Transaction Processing

14. AP Transaction Processing
Vendor Master Record
-G/L reconciliation account
-Withholding tax
-Reference data
-Default data for tax reports
Vendor Contact Info
Vendor Master Record
Accounting Info
Record invoices
Manage payables
Create purchase orders
Manage purchase orders
Vendor Address
Accounting/Purchasing
Process
AP Transaction Processing

15. Accounts Payable Cycle (Invoices processed against a PO)
1. Obtain Goods/Services.
2. Enter Invoice Document referencing the PO.
10. Payment generated.
9. Invoice is released and available for payment.
3. 3 way match (invoice verification).
Match Fails
Successful Match
8. Audit reviews the listing of blocked documents.
4. Document is parked.
(Control Point)
7. Post the invoice document with a payment block to AP Audit for review.
5. Parked documents are reviewed with assistance of buyer and requisitioner.
(Control Point)
6. Corrections are made to the invoice document or to the purchase order.
AP Transaction Processing

16. Accounts Payable - Business Process Overview
The Accounts Payable (A/P) application component records and manages accounting data for all vendors.
It is tightly integrated with the procurement, delivery and processing of vendor invoices.
For PO based billing, the transaction flow of a vendor relationship starts with the purchase requisition and purchase order, followed by goods receipt and subsequent invoice receipt, and ends with the payment of the vendor invoice.
AP Transaction Processing

17. Invoice Verification process occurs within MIRO.
Process Flow -
Invoice Verification
Purchase Order
Goods Receipt
Invoice Receipt ?
Purchase Order
Invoice Receipt
(IR)
Goods Receipt
(GR)
3-way
match:
Purchase order
Goods receipt/ Service Entry Sheet
Invoice
Payment
Accounts Payable
(Control Point)
Invoice Verification process occurs within MIRO.
AP Transaction Processing

18. Invoice Payment: 2-Way Match (For Blanket Purchase Orders)
Invoice Receipt ?
Purchase Order
Invoice Receipt
(IR)
2-way
Match
PAYMENT
Accounts Payable
Purchasing Group
Note: All 2-way match invoices require a physical signature on them prior to
payment being made.
AP Transaction Processing

19. Accounts Payable - Business Process Overview
When the invoice is entered against a vendor sub-ledger account, it has a corresponding impact in the general ledger. It is also matched against both the purchase order and the goods receipt to confirm the quantity and value.
If the invoice is incorrect, it is parked pending resolution of problem. If it matches the expected quantity and amount, it is posted with payment block pending AP Audit review.
AP Transaction Processing

20. Accounts Payable - Business Process Overview
Balance lists, journals, balance audit trails, and other internal evaluations are available for documenting transactions in A/P.
Business transactions include entries such as general ledger journals, customer invoices, and vendor payments. In A/P, the emphasis is on vendor transactions. Each transaction will create a document with a unique number and will provide a complete audit trail.
AP Transaction Processing

21. Accounts Payable - Business Process Overview
Definitions
A document generally consists of a document header and at least two line items. While a document may have multiple line items, it must have a balanced entry.
The document header contains data that identifies a document and applies to the entire document. For example, vendor, document date, document type, document number, company code, posting date, period, etc.
AP Transaction Processing

22. Accounts Payable - Business Process Overview
Definitions
The line items generally include an amount, an account number, credit or debit assignment, and additional details specific to the transaction being posted.
There are two types of documents: Original documents – for example, receipts, invoices, checks, bank statements. Processing documents – accounting documents, sample documents, recurring entry documents, which are primarily used to simplify document entry.
AP Transaction Processing

23. AP Transaction Processing
Document Types
A document type represents a key that is used to classify accounting documents and distinguishes between business transactions to be posted. The document type is entered in the document header and applies to the whole document.
(Customer View)
AP Transaction Processing

24. AP Transaction Processing
Document Types
Accounts
Payable
Definitions
Document types help manage accounting documents and are located on the header portion of every document.
The document type is used to distinguish between different business transactions and to control document number assignment.
Some transactions will automatically default to a document type. For other transactions, you will be required to enter a document type.
AP Transaction Processing

25. AP/AR Document Types/Ranges
Description
Doc Type
Start Doc # Range
End Doc # Range
Asset posting AA
Customer document reversal DA
Customer credit memo DG
Customer invoice DR
Vendor document reversal KA
Vendor credit memo KG
Vendor invoice KR
Vendor payment (Payment through F-58) KZ
Invoice - gross RE
Goods receipt WE
Recurring Customer Invoice ZI
Recurring Vendor Invoice ZL
Payment Posting ZP
AP Transaction Processing

26. Vendor Invoice Information
You will enter some invoice data, while other information is copied from the purchase order, purchase order history, and tax configuration.
Acme Brick
39 Second St.
Fort Worth, TX 76102
ABC Corporation Invoice # 9567
672 Lancaster Ave.
Dallas, TX /03/04
Concerning your purchase order of 04/06/04, we delivered the following goods:
VGE-raw 1 10,000 pcs. $ 2,500
VGE-sem lbs. $ 1,500
_________
$ 4,000
plus 8.75% TAX $
$ 4,560_ _
Payable within a period of 20 days from date of invoice. 2% cash discount for payment within 10 days. Account no Nord Lb (code ). AW
Vendor
Reference (Invoice Number)
Document date
Purchase order
Amount per item
Invoice items
Material
Tax amount
Quantities
Invoiced amount
Unit of measure
Tax rate
Terms of payment
Bank data
AP Transaction Processing

27. AP Transaction Processing
Invoice Processing
When invoices have been received from a vendor referencing a Purchase Order number, those invoices are to be entered against that Purchase Order.
A 3-way match between the Purchase Order values and quantities and the Goods Receipt quantities is made with the invoice quantities/values.
AP Transaction Processing

28. Invoice Processing (cont)
Documents are to be completed (posted) within a reasonable time frame to ensure that the vendor account activity is accurately maintained.
When credit memos are received referencing a Purchase Order, the same 3-way-match procedure is followed. However the match is between the Purchase Order and the quantities/values invoiced to date with those on the credit Memo.
AP Transaction Processing

29. AP Transaction Processing
Posting an Invoice
Invoice
(relating to
purchase
order)
When an invoice is posted, an accounting document is created. Appropriate transactions are posted to the general ledger.
Post A B XX XX
Material Master Record
Moving average price Value
Purch. order history
Goods receipts
Invoices
Doc. No xxx Vendor GR/IR
The material master record and purchase order history are updated when the invoice is posted.
AP Transaction Processing

30. Process to Park & Post Park as Complete for review and FM posting
Complete parked document
Control Point
Post parked documents (individually or in mass) to make available for payment processing and hit the GL
Accounting personnel
Park incomplete invoice/credit memo
Accounts Payable Manager or Auditor
Accounting personnel
AP Transaction Processing

31. AP Transaction Processing
Document Parking
You can use document parking to enter and store (park) incomplete documents in the SAP System without carrying out extensive entry checks.
Parked documents can be completed, checked, and then posted at a later date. Parked documents receive a document number. When documents are parked, data is not updated.
AP Transaction Processing

32. AP Transaction Processing
Document Parking (cont.)
You can display parked documents in the document journal or in the line item display.
Data in parked documents is deleted when posted. When documents are posted to an account, the system automatically updates the account balance.
AP Transaction Processing

33. AP Transaction Processing
Document Parking (cont.)
Save (Park) as completed – After entering the document you can Save as completed. SAP will make sure all of the appropriate fields are filled in and that the document can be posted but the document will still be parked.
The difference between Parking only and Save as complete is Save as complete will hit funds management (only posting will update the G/L).
Only when the parked document is posted will a financial document be created. Audit will review and post documents making the document available for payment.
AP Transaction Processing

34. Parked Document Transactions
You can do the following to Parked documents:
Post FBV0
Post (used by AP Audit as another method to Post invoices after review) ZRNAP827
Display FBV3
Display Changes FBV5
AP Transaction Processing

35. AP Transaction Processing
Enter Invoice (MIRO)
MIRO is used to enter an invoice or credit memo.
It is used for invoices with a PO.
Select invoice or credit memo.
Click here to enter multiple purchase orders.
Enter the Purchase Order Number to the right of “Purchase Order/Scheduling Agreement”.
AP Transaction Processing

36. Enter Invoice (MIRO) (cont)
The indicator will turn green when the document is complete and a balance between the debits and credits is achieved. The Balance field will also show $0.00.
Select the line items and individual goods Receipts on the Purchase Order that relate to the invoice items.
Information will be entered on the Basic data and Payment tabs. Review the data on the contacts and Note tabs.
AP Transaction Processing

37. Display Invoice Document (MIR4)
MIR4 may be used to display or change an invoice/credit memo posted in Logistics Invoice Verification.
A review of the invoice may be needed to ensure the accuracy of documents or to resolve variances in quantity or price.
(MIR6 may be used to list invoice documents.)
AP Transaction Processing

38. Park Vendor Invoice (FV60)
FV60 is used to Park/Save as complete an incoming invoice. Vendor invoices will normally be entered “Save as complete”.
FV60 is used for invoices without a PO.
The Park Vendor Invoice screen is divided into 2 sections:
Vendor Data - The tabs at the top are for vendor related input.
General Ledger Data - The bottom of the screen is for input to G/L accounts.
FV65 is similar to FV60, except it is used to park incoming credit memos.
AP Transaction Processing

39. Display Parked Document (FBV3)
FBV3 may be used to display a parked document.
Click on the Document Header button to view fields in the document header.
Double-click on a line to display the details for the line item.
FBV5 is used to display changes made to a parked document.
AP Transaction Processing

40. Process Triggers and Outputs
Prerequisite
Trigger
Output
Enter an incoming invoice (MIRO)
An invoice or credit Memo has been received from a vendor referencing a Purchase Order number.
Purchase Order for the invoice is known.
Posted or Parked Document
Display an invoice document (MIR4)
You need to know:
The document number
The document number fiscal year
Need to display/change an invoice or credit memo.
 Displayed or changed invoice document
View a list of invoice documents (MIR6)
You must know the document type to be listed.
You must know the document status of the document to be listed.
 Need to display an invoice document.
 Invoice document listing
AP Transaction Processing

41. Process Triggers and Outputs (cont.)
Prerequisite
Trigger
Output
Park incoming invoices (FV60)
Receipt of vendor invoice.
 Invoice is received with complete information and entered into SAP.
Parked document saved as complete
Park incoming credit memos (FV65)
Receipt of a credit memo from a vendor (or)
Request to create a credit memo to offset an invoice posted incorrectly.
 A credit memo from vendor for overcharge or damaged goods are received and entered.
Parked credit memo saved as complete
Display Parked Document (FBV3)
Document must be open and parked, not posted.
Desire to display a parked document.
Display of parked document
View a list of parked document changes (FBV5)
Changes must have been made to a parked document
Desire to view changes made to a parked document
Display of changes made to a parked document
AP Transaction Processing

42. AP Transaction Processing
Summary
You should now be able to:
Describe new SAP Accounts Payable terms
Give an overview of the AP process and invoice processing
Describe the following processes:
Enter an incoming invoice
Display an invoice document
View a list of invoice documents
Park incoming invoices
Park incoming credit memos
Display parked documents
AP Transaction Processing

43. Accessing Training Materials
All TITAN training materials for Phase II are stored on the Tarrant County website
This website is accessed through your Internet Explorer from any computer that has internet access; you do not have to be on the Tarrant County network. The URL for direct link to the Training Materials website is:
Set up this website as a favorite in your web browser for quick future access
Enter the URL above in the address
field in your browser
When you reach the website, go to
Favorites>Add to Favorites in the
Browser menu
A pop-up window will be displayed with
a default name for the site. Click OK.
To access this site in the future, just
click on the Favorites item in the menu
and highlight the name for the website.
You will go directly to the website.
AP Transaction Processing

44. Accessing Training Materials (cont’d)
Review the instruction page to see how to use the website
Click on the Courseware link at the top of the Instruction page
A Listing of Courses will be displayed
Click on the Course Title to see a general description of the content of the course or
Click on one of the buttons beside the Course Title to go directly to either the Overview, Quick Reference Cards, or Tutorials
These training materials will be available for your use and reference at any time
AP Transaction Processing

45. AP Transaction Processing
Running Tutorials
An additional learning tool is being provided with the Phase II SAP implementation -- Tutorials
Tutorials are simulations of the SAP system that take you through a transaction step-by-step in a mock SAP environment.
These can be viewed in two ways:
As a movie that takes you through the transaction in a demonstration, or
As an interactive, hands-on practice session that stops on each screen and directs you to make entries in fields or take actions per instructions provided by the wizard and in the bubbles
Tutorials are provided with each course in the Finance and Purchasing training
A list of the tutorials is provided at the end of each course.
Go to the Training Materials website to access and run these tutorials. Detailed instructions are provided on the website
Happy Tutoring!!
AP Transaction Processing

46. AP Transaction Processing
Training Sandbox
An SAP environment (Training Sandbox) where you can practice your skills in a real instance of SAP will be available after June 18
The sandbox can be accessed through the standard logon process discussed in Lesson 2 of the SAP Basic Navigation course
The only differences are:
Highlight the Training environment on the Logon pad (TRN)
Enter 520 in the Client field
Click logon
Enter the same User Id and Password you are assigned for Production
Feel free to practice any of the tasks in the basic navigation course and any of the transactions included in other courses you take. Use the Quick Reference Cards to walk you through the transactions.
AP Transaction Processing

47. AP Transaction Processing
Additional Help 1
Review the on-line help in SAP 2
Review your training materials and notes. 3
Ask your peers or super user for assistance.
AP Transaction Processing

48. AP Transaction Processing
Tarrant County Help
Problems with running tutorials?
Training Mailbox –
After utilizing the various methods of help on the previous page, if you still have questions or problems or
If you have problems at any time with accessing SAP, printing, computer or network problems, etc.
Contact the Tarrant County IT Help Desk at
AP Transaction Processing

49. Accounts Payable Transaction Processing
CONGRATULATIONS! You have completed the course review.
Now you are ready to view the SAP Tutorials and use the Quick Reference Cards for the related transactions.
Tutorials for this course include:
Enter an incoming invoice (MIRO)
Park incoming invoices (FV60)
AP Transaction Processing