Typical Accounts Receivable Journal Entries

To record a sale to an account customer

Account Debit Credit
Accounts receivable XXX
Revenue XXX

To receive a cash payment from an account customer

Account Debit Credit
Cash XXX
Accounts receivable XXX

A credit note is issued to a customer

Account Debit Credit
Revenue XXX
Accounts receivable XXX

To write off an accounts receivable as a bad debt

Account Debit Credit
Bad debt expense XXX
Accounts receivable XXX

To set up an allowance for doubtful debts

Account Debit Credit
Bad debt expense XXX
Allowance for doubtful debts XXX

To use the allowance for doubtful debts to write off an accounts receivable
Account Debit Credit
Allowance for doubtful debts XXX
Accounts receivable XXX

To record cash received after an accounts receivable has been written off
Account Debit Credit
Cash XXX
Accounts receivable XXX
Accounts receivable XXX
Allowance for doubtful debts XXX
Accounts Payable Entries
Receiving

Inventory account A/C DR

Inv AP Accrual A/C

While delivering items to Sub Inventory

Material A/c Dr
Receiving INV A/c

While crat invoice in AP

Inventory AP accrual A/C …………DR
Accounts Payables OR liability A/c

While making Payment

Liability A/c Dr
Cash clearing A/c

While reconcile payments

cash clearing A/C DR
Cash A/c

All the above entries are for P2P Cycle

Entries in Accounts payable process:

Inventry A/c Dr
To GR / IR A /c
( Being Goods received)

GR / IR A /c Dr
To Vendor A /c
( Being invoice received)

Vendor A /c Dr
To Bank A /c
( Being payment made )
ACCOUNTS PAYABLE NOTES

What are Golden Rules of Account?

In Personal Account Debit the Receiver

Credit the Giver
In Real Account Debit what comes in
Credit What goes out
In Nominal Account Debit the Expenses /Losses
Credit the income/gain

What is Account Payable?

Accounts payable is a file or account sub-ledger that records amounts that a

person or company owes to suppliers, but has not paid yet (a form of debt),
sometimes referred as trade payables. When an invoice is received, it is added
to the file, and then removed when it is paid. Thus, the A/P is a form of credit
that suppliers offer to their customers by allowing them to pay for a product or
service after it has already been received.
Example: Company Purchase some materials on credit basis, the Credit
period is span of one month. So until made payment to Vendor, it is treated as
dues in Accounts Payable in balance sheet.  

What are the teams in Accounts Payable?

Indexing/ sorting – Sorting team will sort the invoice according MM vendor
invoice, finance vendor invoice, Service vendor invoice, and Employee vendor
invoice, date of invoice, vendor Name.

Invoice posting team – invoice posting  team Posting the vendor invoices, if

they found any wrong (quantity mismatch, amount mismatch, or both , any
require field is missing or not visible proper like invoice no., vendor name etc
then they post the invoice as park document.
Query handling Team – Query handling team release the Parking invoice by
solving the query & post that Invoice.

Payment Team – This team is responsible for all types Vendor payment –
Normal Payment, Advance payment, payment request.

Vendor Reconciliation team: The team is responsible for confirmation the

vendor dues by reconcile vendor payment history in system & Vendor
Statement. If they found any dues still to be paid, they raised supplementary
payment or if they found any overpayment or duplicate payment against
duplicate invoice posting by user they raised credit memo to recovery of over
payment or they adjusted the over payment in next payment once confirmed
for superior/manager.

& another responsible to handle the TDS transactions from top to bottom like
submitting the tds amount in the bank on line, Bank challan receipt number
update & TDS raised to vendor

What is Purchase Order?

Purchase order is a commercial document which is issued by the purchaser to

the seller for ordering goods or serves. Purchase order creates legal agreement
between purchaser and the seller.
It contains
Name of the supplier
Description * specification of material
Quantity ordered
Date & place of delivery

What are Types of Purchase Order?

Standard Purchase order: This PO is created for one-time purchase of material.

Blanket Purchase Order: In this PO delivery schedule are not known clearly.

Contract Purchase Order: In this PO material required are not specified.      

Planned Purchase Order: It is a long term agreement purchase Order. In this

PO it specifies materials, estimated costs, and tentative delivery schedules
What do you mean by four way matching, three Way Matching, and two way
matching?

2-ways- we will compare 2 documents - match Purchase order with Invoice

Whatever you have ordered for the PO we will make the payment for the
suppliers in 2-way (we will compare two documents PO and Invoice).
Example: Suppose we had given PO for 100 items, for that we will receive
invoice for 100 items. So that we will make payment for that 100 items.

3-Way matching - we will compare 3 documents - Purchase Order + Goods

receipt +Invoice

Example: Suppose we have ordered 100 items in Purchase Order. But we had
received only 80 items, but we had received invoice for 100 items. So, we will
make payment for only 80 items

4-Way we will compare 4 documents – Purchase Order + Inspection + Goods

Receipt + Invoice+

Example: Suppose we have 100 items in Purchase Order .Suppers send us 80

items we will do inspection on those items whatever we have received, IF 10
items got damaged. Finally, we are going to make payment to the 70 items
only.

What is Down payment Process flow?

This Fundamental is used to give advance payment to vendor to receive the

goods. If it is declared that material receives against advance payment in
purchase order, in this situation purchase department Notified that give down
payment to vendor by create down payment request. The finance Department
is converted down payment request to down payment made on respective due
date.
Sap process like :

Down payment Request f-47 (it many times created by purchase department &
infirm to finance department to pay the down payment on that due date)

Down payment Made – f-48 (if down payment request is exit first release that
or if not make down payment directly)
Down Payment Cleared – f-54 (Cleared the Down payment Against Invoice
number, once vendor invoice posted in the system)

What kind of error can be occurred during Document Posting?

Error of commission – this is happened when in invoice quoted amount is 560

and user entered 650 so it is an error of commission.

Error of omission – you totally omitted that invoice in system.

Duplicate invoice posting – if double time invoice posted in the system by give
different invoice/reference number.

To avoid this kind of an error you have to create doubt, if you posted same
vendor’s invoice recently.

Who is indenter?

Indenter is a person who raised the Requirement to procure material.

Example: A manager in finance department needs 2 Printers to purchase. He

will infirm to Purchase Department regarding printer. In this case indenter is
manager.   

What is Procurement to pay or accounts payable or purchase Process

flow with Journal entry?
Material Requisition Planning                                                 T.CODE

Material Requisition                                                               ME51N

Purchaser raised Shortlisted vendors                                       ME21N
 Goods Receipts - Raw Material A/c                   Dr. 500        MIGO
                                    To GR/IR Clearing A/c  Cr. 500
Invoice Receipt       - GR/IR Clearing A/c           Dr. 500        MIRO
                                    To Vendor A/c              Cr. 500

Vendor Payment - Vendor A/c                           Dr. 500         F-53/F-58/F110

                    To Outgoing  Bank Clearing  A/c   Cr. 500
What are the Sub parts in Accounts Payable in sap?

Vendor invoice Posting

Release Park invoice
Vendor Payment
Reporting
Vendor Reconciliation

What is sap?

Sap is an ERP (Enterprise Recourse Planning). The acronym of SAP is System

Application & Product in Data Process.

What is ERP?

Enterprise Resource Planning system is a fully integrated business

management system covering functional areas of an enterprise like Logistics,
Production, Finance, Accounting, Sales and Human resources etc. It organizes
and integrates Operation processes and information flows to make optimum
use of resources such as men, material, money and machine. ERP is a global,
tightly integrated closed loop business solution package and is multifaceted
ERP promises one database, one application and one user interface for the
entire enterprise. ERP system enhances a manufacturer ability to accurately
schedule production, fully utilize capacity, reduce inventory, and meet
promised shipping dates.

What is Company?

Company represents a group. Means it is used for consolidating individual

Company codes.
Example: Reliance Group is company
Reliance Auto mobile, Reliance Perotrolium , Reliance Telecom, Reliance
Insurance, Reliance Multimedia are individual Company codes.

What is Company code?

It represents by four digits alpha numeric keys. It is separate legal entity for
which all financial Statements are drawn like Balance Sheet, Profit & loss
Accounts, cash flow statements , Funds flow statements etc.
What is Business area?

Four digits code (Business area) represents a segment/Responsibility of the

Organization for Which Separate financial Statements are Prepared. It can be
divided by Location wise, Product line wise, segment wise.
Example: For company code 1000 (Reliance Auto) has five location Pune,
Mumbai, Kolkata, bang lore, Delhi branches are different business areas.

What is Fiscal year Variant?

Fiscal/financial year is a combination of 12 months periods. Which stats from

April to March of every year. In sap system there are two types of period one is
regular posting periods of 12 months & special periods of 4 months for the
purpose of accounts adjustment at year end.

What is Document type?

Document types are used to differentiate the business transactions and to

manage how document are stored. Accounts Payable Document types are:

KA = Vendor Document
KG = Vendor Credit Memo
KR = Vendor Invoice
RE = MM Vendor Invoice
KZ = Vendor payment
SA = GL A/C Document

What is Account type?

Accounts Types are used to identification of relevant category like A- Asset, K-

vendor, D-Debtor, M-Material, S- General ledger

What is posting keys?

The posting key controls how the line item is entered and processed
Which side of an account can be posted to whether Dr. Side or Cr. Side?
Which type of account can be posted to A- Asset, K-vendor, D-Debtor,
M-Material, and S- General Ledger?                                                                    
40 G/L account debit posting
50 G/L account credit posting
 01       Customer invoice
11       Customer credit memo
21       Vendor credit memo
25 Vendor payment
31 Vendor Invoice
 P Transaction vendor Debit PK Transaction   vendor  Credit
K
21 Credit memo                  31 Invoice                                           
22 Reverse invoice              32 Reverse credit memo                       
24 Other receivables           34 Other payables                                
25 Outgoing payment          35 Incoming payment                           
26 Payment difference        36 Payment difference                          
27 Clearing  37 Other clearing                                  
28 Payment clearing           38 Other clearing                                  
29 Special G/L credit 39 Special G/L credit

What is Reconciliation Account?

Reconciliation Account is ledger account, which is updated through Sub-ledger

account. We could not post directly into reconciliation. All individual Vendors
are Sub-ledger accounts.

Example: Vendor Reconciliation account is a Ledger & Ram, Hari, Gopals,

Sudam accounts are sub ledger accounts. When post the Ram’s invoice. Ram
sub-ledger is updated as open item dues as well as Vendor Reconciliation
account is update through RAM. If post all vendors’ invoice then reflection will
be as below

Vendor Recon. Acct =Ram dues+ Hari’s dues + Gopals Dues + Sudam’s dues
1000 = 100+200+500+200

What are the Special Gl indicators used in sap?

Special GL indicators are used to identify the special transaction. This reflects in
vendor line item report under Special GL indicator column.

F- Down Payment Request

J- Simple Payment Request
A-Down payment made
w- Bill of exchange Payment
G- Bank Guarantee.
L – Letter of Credit Payment.
What is noted Item?

When you note down something to be paid in future that is Called as Noted
item. Noted item has no effect in books of accounts. Transactions like Down
payment request, payment request, and bill of exchange payment until
release, letter of credit until release.
It is displayed in vendor line item report under Special GL indicator column.

What are Special Gl transactions?

Apart from normal transaction like invoice posting & simple vendor payment
are called special gl transactions. Example Down payment made.

What is line item?

Line item that provides a detailed information about the document like
amounts, posting date, due date, dues, not dues, over dues, open item or
cleared item etc.

What is open item?

Items are identified by Red colour which represents as dues/not dues not paid
yet to vendor

What is cleared item?

Items are indentified by Green Corlour Square button which represents

payment has been made to vendor.

Difference between partial & Residual payment?

Partial Payment Residual payment
In partial payment, partial amount Here you also make partial payment to
can be paid & this document will vendor but one thing is that Residual
reflect in open item in vendor line item amount is generated a new open
item report until full settlement the item with new document number.
dues. Example : Vendor dues 1000
Example : Vendor dues 1000 Partial payment = 400 is paid
Partial amount paid 400 Remain Residual item amount = 600
System response dues is 600 but will be created as open
400 & 1000 will appear you in red item  automatically by system
colour open item. So 400 will be cleared & displayed in
 When you paid remain 600 then cleared item. 600 will be displayed in
total it will be displayed in cleared open item.
item.

Difference between Hold Document & Parked Document?

Holding Document Parking Document
Holding Document is hold by Parking document is created with
temporary number whatever given by internal number range
user.
Holding document is only Parking document can viewed &
viewed/changed by user changed by anyone
Hold Document in SAP means  It is for SAP Park Document means for
short term and is being used when longer period and is generally used
SAP transaction Debit  or Credit is for internal purpose.  Till approval
uncertain and generally its is used for take place etc. after this SAP parked
external purpose for document posted in SAP.
example  Advance from
unknown  customer etc.

Difference between vendor invoice posting by transaction code screen FB60

& F-43?
FB60 SCREEN F-43 SCREEN
Single screen data entry Multiple screen date entry
Automatic document type, Manually enter Document type, Posting
posting key updated by the key in the system.
system.

Difference between vendor Payment posting by transaction code F-53 VS F-

58 VS APP
F-53 F-58 F110 APP
Multiple payment posting Multiple payment posting Multiple payment
Manually manually with Form print Automatically with form
printing by set parameter in
APP.

What do you mean by posting date, Document date, Value date, clearing
date & Base line Date?
Posting date Doc. Date Value date Clearing Date Base line date
On which date invoice quoted Use full for Bank Clearing date is To calculate all
document is date is document auto updated Due dates with
posted into Date to be filled once payment reference to
system in document Date made or cleared payment terms.
 field the document.

What is APP? 

APP is nothing but Automatic Payment Program is used to make huge payment
to huge number of Vendors at a time, where system clears the vendor
accounts & prints the Check, Payment advice & payment summery
automatically. The transaction code to run the APP is F110.

How payment is executed through APP?

Set the Parameter >>> Give proposal  Edit proposal if any need to edit

>>> payment run >>>print the forms.
You launch transaction F110 and specify parameters for the selection of items
to be paid. Then you run Proposal Run which creates Payments Proposal. This
proposal is analyzed by Treasury / Accountants / somebody else and then it is
approved immediately or with some corrections. After that you run Productive
Run. At this moment postings are done (or not done – see separately). When
Productive Run is finished, you can create payment file or paper payment
documents for the bank and/or payment recipients.

Terminology in APP
 set the Parameter – set the payment parameter to executed the app where
run date, identification code, company code, Payment method, next run date
& vendor code are compulsory  to filled up.
Give proposal to run – you give Proposal to system to consider invoices for
payment as per your set parameter. If any invoice with red color those need to
be release by edit proposal.
Edit Proposal: here you release the invoice for payment by avoid the payment
block, assign payment method, House bank by reallocation functionality.
Run payment: at last once clarified proposal you make payment by press
payment run button.
Free selection tab: it is help full if management wants payment to be made by
document type wise, posting date wise, profit center wise or any other aspect
wise. You can specify by assign respective value in these fields.
 Additional Log: You can define criteria for an additional log. If you call up the
log later on, the system displays the processing logic of the payment program
in appropriate detail. Before doing anything, you should read the note under
Checking the Log in "Creating the Payment Proposal".
The following processing steps can be logged.
Due date check
Payment method selection in all cases
Payment method selection if not successful
Payment document items
Procedure
For the additional log, choose the Additional log tab on the Automatic Payment
Transactions screen. Click next to the corresponding option and enter the
account numbers of the vendors or customers.
Next payment run date: This date is needed in order to check the due date of
payables. If an item is already overdue on the date of the next payment run, or
would lose cash discount, the system pays the item in this payment run. In real
time most of companies are run app in every fortnightly. Run schedule is in-
between 1st  and 15th. You run app on 1st date of the month and two items has
due date on 3rd and 5th of the month, it will be overdue on next payment
run (15th  date ) or some item are falls under cash discount due date 31th , then if
you keep 31st  date in NEXT RUN DATE field, system pays these item in this
payment run and you get cash discount benefits.  

Invoice under Exceptions:

When executing the  automatic payment program (F110 transaction), a

proposal run must always be carried out in SAP system  first. The proposal list
will sometimes include exceptions or it is displayed with red color error button.

Common exceptions are:

SAP Invoice contains payment block. To pay this invoice, remove the payment
block when editing the proposal list (unless the payment block is one which
cannot be edited during payment proposal) or remove payment block via FB02
for each SAP invoice.

Payment method in vendor master/invoice is different from the one specified

in the payment program parameter. To pay this invoice, allocate the payment
method in the parameter of the payment run to this invoice while editing the
proposal list.

Vendor master does not contain information specified as mandatory in the

payment method in the parameter of the SAPÂ payment program. For
example, depending on the payment method configuration for the country,
certain fields such as city or PO Box must be populated in the vendor master.
In this case, delete the proposal run, make the necessary changes in the
vendor master and execute the proposal run again.

Typically, Â payment program pays due invoices in full. To cater for partial
payment via automatic payment program, payment request will be used
(optional). Down payments to staff and vendor can also be made via the
automatic payment program if down payment request was posted.

If  foreign currency invoice is paid via  automatic payment run, the relevant
exchange rate type should be selected in the payment run parameter.
Exchange rate gain/loss on making the payment will be automatically posted to
the relevant profit and loss account based on the reconciliation account of the
vendor.

The  payment method specified in the parameter of the payment program

determines the bank account and the GL account used to make the payment.
Also, depending on the payment method, cheques, other forms and payment
files will be generated.

What is Vendor Reconciliation? 

It is Month end activities once Full accounts payment process is completed by

payment to vendor. The vendor reconciliation team reconciles payment by
matching Vendor statement with system payment history. They confirm
whether any dues to be paid if any, they raise supplementary or any amount to
be collect from vendor by raise credit memo.   

Country India version (CIN): Indian taxation & withholding

tax (TDS)

What is TDS/withholding tax & its process Flow?

TDS (Tax Deducted at Source) is deducted at source of vendor’s income. We

can Charge TDS when we receive Govt. specified services from vendor & that
person should eligible as per Govt. slab incomes.TDS can be deducted at the
time of payment to vendor or vendor invoice processing which is ever is
earlier.  

What are the Section codes, percentage rates & Slab rates in TDS?
Follow the link: http://finotax.com/itax/tds0910.htm

All forms related TDS:

Follow the below link: http://taxworry.com/new-form-16-form-16a-form-24g-
form-27d-notified-download-now/

What are due dates for TDS payment

Due Date Table for TDS and TCS quarterly returns: Quarter       
Form 24Q Form 26Q Form 27Q Form 27EQ
First July 15th July 15th July 14th July 15th
Second October 15th October 15th October 14th October 15th
Third January 15th January 15th January 14th January 15th
Fourth May 15th May 15th May 15th May 15th

Tax deducted by company         

Time to deposit TDS (due date to deposit tds) Rule 30
1              tax deductible in March                                                                                30th April of
next year  
2              other months & tax on perquisites opted to
            be deposited by employer                                                 7th of next month
     
Note: Assessing officer, with prior approval of Joint commission, may permit quarterly payment of
TDS under following sections

Section Description quarter of Financial year date of

ended on payment
192 salary    30th June 7th
st
(1   qtr) July                

194A                TDS on interest other than 3th September 7th October

securities (2n qtr)
194D TDS on insurance commission 31st December 7th January
rd
(3  qtr)
194H                TDS on commission 31st March 30th April
th
(4  qtr)
Note:TDS is to be deposited online mode only through Debit card or Interenet banking Mode, except
in case of Book adjustment by Govt Offices

AP JOURNAL ENTRY
ACCOUNTS PAYALBE JOUNAL ENTRIES - For Procurement/Purchase of
Material                                                                                                                                                                    
T.CODE
During GOODS RECEIPT at Store                                                                             MIGO
Raw Material Stock                                    Dr.            1000
GR/IR clearing                     Cr.            1000
During Excise Invoice Credit                                                                                                J1INEX         
Cenvat Account                             Dr.            200
Cenvat Clearing                  Cr.            200
During Invoice Verification                                                                                                    MIRO    
Cenvat Clearing                             Dr.            200
  GR/IR Clearing                             Dr.            1000
Vendor Payable                                    Cr.            1200

RETUREN GOODS TO VENDOR (CREDIT MEMO)                                                  FB65

VENDOR A/C                                                            DR.          5000

TO RAW MATERIAL A/C                 CR.           5000

FINANCE VENDOR INVOICE POSTING                                                       FB60/F-43/FV60

Rent Invoice, Office Stationary Purchase invoice ,Professional Fees (Charted

Accountant) ,Postage & telegram Charges invoice, Telephone Charges invoice Electric
Charges invoice, Sub-contractor Service charges invoice, mobile bill

TELEPHONE CHARGES                                   DR.           2500

TO VENDOR A/C                                 CR.           2500                                                            

TDS ACCOUNTING ENTIRY WITH ADVANCE TO VENDOR                    F-47/F-48

                                                    
VENDOR A/C                                          DR.          10000
                  TO OUT GOINGING BANK            CR.          9900
                  TO TDS A/C                                             CR.           100
                
WITH INVOICE POSTING                                                                                                         FB60/F-43/
FV60
                                  
RENT A/C                                                                   DR.          20000
                  TO VENDOR A/C                                 CR.           19900
                  TO TDS A/C                                             CR.           100

AP STEP BY STEP TRAINING

CREATE VENDOR MASTER DATA  –  FK01 FUNCTIONALLY (FINANCE VENDOR)  &  XK01-
CENTRALLY (MATERIAL MANAGEMENT VENDOR)

FINANCE RELATED TRANSACTION

STEP 1 – INVOICE POSTING & PAYMENT

VENDOR INVOICE POSTING FB60 OR F-43
DISPLAY DOCUMENT – FB03
DISPLAY VENDOR LINE ITEM – FBL1N
DISPAY VENDOR TRANSACTION FIGURE – FK10N
VENDOR PAYMENT – F-53/F-58(WITH CHECK PRINTING/PAYMENT ADVICE/PAYMENT
SUMMARY)

STEP 2 – PARK INVOICE & POST PARK INVOICE & PAYMENT

VENDOR INVOCE PARKING FV60 OR F-41

POST  PARKING VENDOR INVOCE FBV0 & FV60
DISPLAY DOCUMENT – FB03
DISPLAY VENDOR LINE ITEM – FBL1N
DISPAY VENDOR TRANSACTION FIGURE – FK10N
VENDOR PAYMENT – F-53/F-58(WITH CHECK PRINTING/PAYMENT ADVICE/PAYMENT
SUMMARY)

STEP 3- REVERSE OPEN ITEM DOCUMENT FB08

STEP 4 – REVERSE CLEARED ITEM DOCUMENT FBRA

STEP 5- DOWN PAYEMENT

CREAT DOWN PAYMENT REQUEST – F-47 FBL1N WITH NOTED ITEM

RELEASE DOWN PAYEMNT REFERENCE TO DOWN PAYEMNT REQUEST – F-48  FBL1N WITH

SPECIAL GL TRANSACTION

POSTING VENDOR INVOICE – FB60 FBL1N WITH NOTED ITEM,SPECIAL GL TRANSACTION,

NORMAL ITEM

ADJUST DOWN PAYEMNT WITH VENDOR INVOICE – F-54  (GIVE VENDOR INVOICE (KR) NUMBER)
– FBL1N WITH ALL ITEMS.

REST AMOUNT PAID (VENDOR PAYMENT) – F-53/F-58  FBL1N WITH ALL ITEM CRITATIA.

STEP 6 - PAYMENT WITH CASH DISCOUNT RECEIVED.

CREAT DOWN PAYMENT REQUEST – F-47 FBL1N WITH NOTED ITEM

RELEASE DOWN PAYEMNT REFERENCE TO DOWN PAYEMNT REQUEST – F-48  FBL1N WITH

SPECIAL GL TRANSACTION

POSTING VENDOR INVOICE – FB60 FBL1N WITH NOTED ITEM,SPECIAL GL TRANSACTION,

NORMAL ITEM

ADJUST DOWN PAYEMNT WITH VENDOR INVOICE – F-54  (GIVE VENDOR INVOICE (KR) NUMBER)
– FBL1N WITH ALL ITEMS.

REST AMOUNT PAID & RECEIVED CASH DISCOUNT (VENDOR PAYMENT) – F-53/F-58  FBL1N
WITH ALL ITEM CRITATIA.
STEP 7- PARTIAL PAYMENT & RESIDUAL PAYMENT

F-53/F-58AT THE PAYMENT SELECT PARTIAL PAYMENT TAB GIVE PARTIAL AMOUNT IN ACTIVE
FIELD. THEN SIMULATE & SAVE. – FBL1N

STEP 8– PAYMENT WITH AUTOMATIC PAYMENT PROGRAM.

VENDOR INVOICE POSTING FB60 OR F-43

DISPLAY DOCUMENT – FB03

DISPLAY VENDOR LINE ITEM – FBL1N

DISPAY VENDOR TRANSACTION FIGURE – FK10N

VENDOR PAYMENT – F110 (WITH CHECK PRINTING/PAYMENT ADVICE/PAYMENT SUMMARY

WITH AUTOMATIC)
                                                                                
STEP 9 – TRANSFER WITH CLEARING

EXAMPLE YOU WRONGLY CREDIT A VENOR. F-51

STEP 10 – WITH HOLING TAX ADJUSTMENT

CREAT DOWN PAYMENT REQUEST – F-47 FBL1N WITH NOTED ITEM(OF RS- 10000)

RELEASE DOWN PAYEMNT REFERENCE TO DOWN PAYEMNT REQUEST – F-48  FBL1N WITH

SPECIAL GL TRANSACTION (OF RS. 10000)

POSTING VENDOR INVOICE – FB60 FBL1N WITH NOTED ITEM,SPECIAL GL TRANSACTION,

NORMAL ITEM (OF RS. 20,000 BUT W.TAX AMOUNT 10000 & DELETE TAX CODE FOR PAYMENT
POSTING)

ADJUST DOWN PAYEMNT WITH VENDOR INVOICE – F-54  (GIVE VENDOR INVOICE (KR) NUMBER)
– FBL1N WITH ALL ITEMS.

REST AMOUNT PAID (VENDOR PAYMENT) – F-53/F-58  FBL1N WITH ALL ITEM CRITATIA.
CREAT TDS CHALL FOR PAYIN TDS AMOUNT – J1INCHLN

BANK RECEIPT UPDATE – J1INBANK

TDS CERTIFICATE PRINT – J1INCERT

REPRINT TDS CERTFICATE – J1INREP

QUATERLLY RETURN – J1INQEFILE

TDS STATUS - J1INMIS

MATERIAL MANAGEMENT RELATED TRANSACTION

CREATE MM VENDOR BY T.CODE XK01

STEP 11 – PO CREATE, CHANGE & DISPLAY

CREATE PURCHASER ORDER – ME21N

CHANGE/DISPLAY – ME22N/ME23N

STEP 12 – GOODS RECEIPT & DISPLAY

GOODS RECEIPT –MIGO

DISPLAY GOODS RECEIPT DOCUMTN MB03

STEP 13 – LOGISTIC INOICE VERIFICATION & PAYEMENT

LOGISTIC INOICE VERIFICATION - MIRO

DISPLAY MM INVOICE DOCUMENT – MIR4
DISPLAY VENDOR LINE ITEM – FBL1N
DISPAY VENDOR TRANSACTION FIGURE – FK10N
VENDOR PAYMENT – F-53/F-58(WITH CHECK PRINTING/PAYMENT ADVICE/PAYMENT
SUMMARY)

AP LOGICAL QUESTING

If in invoice Po number is Mentioned, then Which T.code you will be used to

Process that Invoice?

Ans :We can directly post the invoice by using t.code FB60 if goods receipt is
not required. Example: service invoice.

We can use MIRO if it is GR base invoice.

What is WBS Element?

It is nothing but work break down structure, it represents that goods are taken
for specific project where budgetary control is applied. So you have to entered
WBS code number during Invoice posting like cost center.

How you will know whether down payment or payment request has made to
vendor not?
Ans : (FBL1N) In vendor line item there is a column of special general ledger
indicators are displayed. A- Down payment made, F- down payment request
(noted item)

Whether the invoice is against the PO or Non PO it should go to the concern

department's head for the approval

Finance will check if the purchases are budgeted for both (PO & Non PO) and if
Non PO then finance will ask for the reasons and GM approval to process the
payment

If the invoice itself does not have the complete details then it is better to
reject the invoice and ask the supplier to provide the invoice with full details
and supporting.

What is the difference between Consigner and Consignee?

Consigner is the person who is the owner of the goods and who deliver the
goods to the consignee.
Consignee is the person who receives the goods and he just possesses the
goods and not the owner.

What steps would you take before approving an invoice for payment?

The following are the important steps one should take before approving the
payment.

 Refer the Purchase Order issued.

Refer the Goods Received Note (GRN) for having received goods / service as
mentioned in the P.O

 Refer the terms and conditions for making the payment (any credit period)

 Check the bank balance before approve the invoice for payment

The most critical part of AP process is "verification" of goods / services as per

invoice. Whether it is thru' certification of the concerned team which has
raised the PO or by confirmation of the Stores Department having received the
material - depending on the nature of invoice - it is important for a Payables
team member to look into this before starting to vet the other aspects of the
invoice.
What the situation we parked the document?

Information required for posting the invoice document is missing in the invoice
document and you do not want to have to enter again the data already
entered
 The balance is not zero
 The following updates are to take place:
 Log of document changes
Informative purchase order history
 Data for advance tax returns
 Index for checking for duplicate invoices
 Vendor open items
 Vendor open items for parked documents 
When you Save Invoice Documents as Complete?
 You create an invoice document in document parking. Choose Save as
complete to do this. Before saving the data, the system performs consistency
checks. In the event of errors, the data is not saved, but is presented for
correction instead. Subsequently, you can still change, delete, or post
Documents complete for posting.

 Use Save as complete if:

 No more changes are to be made to the invoice document
 The balance is zero
 The invoice document is to be parked for posting but not posted yet

Can we specify payment method in open items? Is it done in invoice?

A: Payment method is specified in several places in SAP system:

Vendor master record. You can specify several payment methods in there, and
APP will automatically select the best one.
Directly in the invoice.\
In the payment terms, and then this value will be inherited into the invoice.
Payment method in the invoice has a priority over the payment method in
vendor master record.

Why do I have Vendors and Customers on the selection screens of APP? What
is a relation between Customers and Payment program which is used for
outgoing payments?
A: First of all, we can pay Customers too. For example, refunds or returns of
down payments. Second, APP can be also used for payments collection. For
example, direct debits.

That’s why customers are pretty much on their place in APP.

Can we make Down payment to vendor in APP?

Ans: yes, first create Payment Request by using T.code F-47, that request can
be converted in to down payment in APP.

Can we make Partial payment to vendor in APP?

Ans : No, Only full amount of invoice (bill to bill) is consider for payment in
APP.

Can you verify the Logistic invoice before to goods Receipt?

Yes, if the case is Import purchase.

What are the prior activities to post an invoice?

All required filled are entered correctly

System should response Green signal  
Debit & Credit should equal
Simulate the transaction - check Journal entry, check document header data –
posting date, reference no., document date, company code, document type &
currencies.

How many vendors you handled in your company?

Ans : I Was handled around 100 vendors in terms of Reconciliation.

Is there any daily target for posting the Invoice?

Ans : yes, Every individual has daily target of 60 invoices to post.

If I assign Payment term 0001, 0002, 0003, 0004 & baseline date is today,
then tell me about all the due dates. (1 st due date, 2nd Due date, 3Rd due date
or Net due date)

AP TRANSACTION CODES
VENDOR MASTER DATA (FINANCE) VENDOR MASTER (MM)
FK01      Create Vendor master XK01      Create Vendor master (Centrally)
FK02      Change Vendor Master XK02      Change Vendor Master
FK03      Display Vendor Master XK03      Display Vendor Centrally
FK04      Display Vendor Master Changes XK05      Block Vendor Master
FK05      Block/Unblock vendor master XK06      Mark Vendor for Deletion

FINANCE INVOICE POSTING LOGISTIC INVOICE POSTING (MM)

FB60      Post Invoice Receipt MIRO    Enter Vendor Invoice
FBV0      Post Parked Document MIR4     Process Invoice Docs
FB65      Post Credit Memo MIR6     Invoice Overview
FBV4      Change Parked Document MIR7     Park an Invoice
FBV5      Display Changes Parked Docs MR8M Cancel Invoice Document
FV60      Park Incoming Invoices MRBR    Block and Release Invoice
FV65      Park Incoming Credit Memo MRKO   Consignment and Pipeline Settlement
OTHERS MRRL    ERS with LIV
F-51      Transfer with clearing
F-55     Statistical Posting
F-57     Noted item
DOCUMENT MANAGEMENT VENDOR ACCOUNT MANGEMENT
FB02      Change Document FBL1N   Vendor line item Display
FB03      Display Document FK10N   Vendor transaction figure report
MIR4     Display MIRO Document
MB03    Display MIGO Document CHEQUE MANAGEMENT
FB09      Change Line items
Print Check for Payment
REVERSE Document FBZ5
Reprint Check FCH7
FB08     Reverse Open item Reverse Check Payment FCH8
F.80      Mass Reverse Void Checks FCH3
FBRA    Reverse clearing item Void Issued Check FCH9
Delete Manual Checks FCHF
PRINT OUTPUT Delete Voided Checks FCHE
FBZ5   PRINT PAYMENT TERMS
Display Check Information FCH1
Display Payment Document Checks FCH2
Renumber Checks FCH4
Change Check Information/Cash
Check FCH6
Online Cashed Checks FCHR
Change Check/Payment Assignment FCHT
Cashed Checks S_ALR_87012119
Check Register S_P99_41000101
Check Lots S_P99_41000102
OUTGOING PAYEMENT TDS TRANSACTION
F110       Automatic In Out Payment J1INCHLN    REMITANCE TDS CHALLAN
F-47       Vendor Down payment Request J1INREV      Reverse Challan
F-48       Post Vendor Down payment J1INBANK    Update Bank Challan Number
F-53       Manual Outgoing Payment J1INCERT     TDS Certificate Print
F-58       Manual Outgoing Payment (Print forms) J1INREP       TDS Certificate Reprint
F-54       Clear Vendor Down payment J1INCANC    TDS Certificate Cancel
F-59       Outgoing Payment Request J1INJV          Post Vendor JV
FB60      Hold Vendor Document J1INQEFILE  TDS Quarterly Return
FBL1N   Release for Payment J1INMIS       TDS Status information
J1INPP         Update Business Place & Section code Manually

BILL OF EXCHANGE ACCOUNT CLEARING

F-40      Bill of Exchange Payable F.13 Automatic Account Clearing
F-42 Internal Transfer without Clearing
F-44 Manual Clearing
F-51 Internal Transfer with Clearing
REPORTING (VENDOR) REPORT (ACCOUNTS PAYABLE)
F.40        Vendor Master Accounts List S_ALR_87012078 - Due Date Analysis for Open Items
S_ALR_87012103 - List of Vendor Line Items
Vendor Account Analysis S_ALR_87012083 - List of Vendor Open Items for Printing
S_ALR_87012084 - Open Items - Vendor Due Date Forecast
F.45        Create Vendor Evaluation S_ALR_87012085 - Vendor Payment History with OI Sorted
F.46        Display Vendor Evaluation List
FBL1N   Vendor Line Items S_ALR_87012104 - List of Cleared Vendor Items for Printing
FK10N   Vendor Account Balance S_ALR_87012105 - List of Down Payments Open On Key
OBAK    Select Vendor Evaluation Date – Vendors
OBAO    Specify Data Volume for Vendor
Evaluation S_ALR_87012077 - Vendor Information System
S_ALR_87012082 - Vendor Balances in Local Currency
Vendor Correspondence S_ALR_87012079 - Transaction Figures: Account Balance
S_ALR_87012081 - Transaction Figures: Sales
F.18        Vendor Balance Confirmation
F.61        Print Correspondence S_P99_41000099 - Payment List
F.63        Delete Requests S_P99_41000101 - Check Register
F.64        Maintain Request S_ALR_87012119 - Cashed Checks
FB12      Vendor Correspondence Request S_P99_41000102 - Number Ranges for Checks

S_ALR_87012086 - Vendor List

CONTACT US
All ides are welcome..........Please Addressed your information to below Email ID or you may
direct call me by using below number. 

MR. ALOK SAMANTARAY

SAP FICO Consultant, MBA finance, B.Com 
Mob : +91-9830542454
Email : [email protected] 
INDIA
INTERVIEW QUESTION

Organization structure
1.       Organization structure
a.       What is company?
b.      What is Company code?
c.       What is Business area
d.      Why you are not assigning business area to company code?
e.      What is plant & why you assign plant to company code?
f.        Where you assign business area in Profit center?
g.       What is different between profit center & business area?
h.      What is Profit center?
i.        What is Segment? It’s uses.
j.        What is Cost center?
k.       What is Controlling Area?

. Financial Accounting Global setting

a.       What is field status group? Its importance?
b.      What is fiscal year & its types/ uses?
c.       What is posting periods variant?
d.      What is open & closing posting variant?
e.      What is real time integration with co and its configuration?
f.        What is parallel accounting fundamental?
g.       What is leading ledger?
h.      What is Non leading ledger?
i.        What are document types & its controls?
j.        What do mean by document in entry view?
k.       What do mean by document in ledger view?
l.         What is posting key? What does it control?
m.    Where you create the document change rules for document header, line item?
n.      What is authorization in every TOOL NODE
1General ledger
a.       What is chart of accounts?
b.      How many chart of account is assign to company code? Can I assign group chart of account
to company code?
c.       What is Gl account?
d.      What is t.code to copy Gl for chart of account & company code – OBY7/OBY2
e.      What is financial statement version?
f.        What is document splitting & its type?
g.       Where do you configure for manual accrual?

1. Currency setting
a.       Types of Currency in sap system?
b.      What is a usage of index currency?
c.       What is a usage of hard currency?
d.      What is direct quotation & direct Quotation?
e.      What is currency ratio?
f.        What is exchange rate type?
1.    At time of creation of GL which fields are important?
ANS – ACCOUNT GROUP, PL OR BS, DESCRIPTION, CURRENCY, TAX CATEGORY, WITHOUT TAX
ALLOWED, OIM, LID, SORT KEY, FSG, PAM, CFS RELETED.

1.       What is account group? While creation of GL account if I need field one should be
mandatory then how it should be done?
2.       Document processing
a.       What is the base line date? Where we make default base line date?
b.      If base line date is considered as the due date? Then what is due date?
c.       What is partial & residual payment?
d.      What is external number range & what is internal number range?

1.       How pricing procedure is determined in SD & what will be accounting flow in FI?
2.       What is a payment term?
It is a SLA with business partner to settle the dues.
0001c- immediate due
002 – 14 days 3%, 30 days 2%, net due 45 days.

3.       What is validation & substitution?

4.       Tell me the procurement life cycle?
5.       Gl master – Questions
a.       What is an account manage only balance in local currency?
b.      What is alternative Account Number?
c.       What is an account managed in external system?
d.      What is Open Item Management?
e.      What is Line Item Display?
f.        What is sort key?
g.       What field status group
h.      What is Post automatically
6.       Company code At Global parameter?
a.       Company code is productive
b.      What is Negative posting allowed?
c.       What is tax base is net value?
d.      What is discount base is net value?
e.      What is default value date option?
f.          
7.       TDS – QUSTION
a.       What is TDS?
b.      Tell procedure of withholding tax?        
c.       What is different between w.tax type & w.tax code?
d.      What is different between classic w.tax types & extended w. tax?
e.      If party is 20% is exempted how you will configured?
f.        TDS Journal entry?
g.       TDS configuration steps?
h.      TDS adjustments
8.       CIN
a.       What is different between taxinj & taxinn?
1.       Accounts payable
a.       How many accounts group & reconciliation account you have created in your project?
b.      Accrual & Defferal?
c.       APP
                                                              i.      What are the uses of additional log in app?

                                                            ii.      What is free selection tab in app?

                                                          iii.      What is next run date in app?

                                                           iv.      Can we make Down payment through App?

2.       Accounts Receivable
a.       What dunning?  Explain the dunning procedure?
b.       
3.       Cash & Bank Accounting
a.       Cash journal Configuration?
b.      Manual Bank Reconciliation configuration?
c.       Electronic Bank Reconciliation configuration? 
4.       Asset Accounting
a.       What is chart of depreciation?
b.      What is Depreciation Area?
c.       What is account determination?
d.      What is asset Class?
e.      What is multilevel method?
f.        What is period control method?
g.       What is Depreciation key?
h.      How AUC is settled?
i.         
5.       FI-MM Integration
a.       What is valuation area?
b.      What is valuation grouping Code?
c.       What is general/account modifier?
d.      What is Valuation class?
e.      What is Material Type?
f.        What is event/transaction key?
g.       What is automatic account determination?
h.      Can we do MiRO before MIGO?
i.        What is procurement cycle?
j.        What the movement types are used mostly?
k.        
6.       Controlling
a.       Controlling organization
                                                              i.      What is controlling area?

                                                            ii.      What is cover version?

                                                          iii.      What are Number Range & What are the groups are important for FI &

CO Posting.
b.      Cost element
                                                              i.      What is cost element account?

                                                            ii.      What is primary cost element?

                                                          iii.      What is primary revenue element?

                                                           iv.      What is secondary cost element?

                                                             v.      What is secondary revenue element?
                                                           vi.      What is external cost element & internal cost element?

                                                         vii.      What is reconciliation ledger?

c.       Cost center
                                                              i.      What is cost center?

                                                            ii.      What do you mean by cost object?

                                                          iii.      What is statistical key figure?

                                                           iv.      What is activity type?

                                                             v.      What is distribution?

                                                           vi.      What is assessment through SKF OR Activity type?

                                                         vii.      What is direct active & indirect activity?

                                                       viii.      What is assessment?

                                                           ix.      What is the t.code to repost the line item?

                                                             x.      What is the t.code to repost the cost?

                                                           xi.      Can we do budgeting through Cost center wise?

                                                         xii.      Can we do fund commitment & commitments through cost center?

                                                       xiii.      What is dependent cost & what is independent cost?

a.       Internal order
                                                             i.      What is internal order?

                                                            ii.      What is order type?

                                                          iii.      What is Allocation structure?

                                                           iv.      What is real order?

                                                             v.      What is statistical order?

                                                           vi.      What is settlement profile?

                                                         vii.      What is statistical order? Can I create a budgetary control on statistical

order?
b.      Profit center
                                                              i.      What is profit center

                                                            ii.      Differ between profit center & cost center?

                                                          iii.       

What are closing activities?

 What are yearend actives?

  What  were issues get in support project

1.       Logical Questions?

a.       Client has 3 locations like A, B, C what you will suggest for Profit center & on which basis
profit center is decided?
b.      Why plant is assign to company code & if plant is abroad then?
c.       How COA is transported to development server to production server & Gl balance is
uploaded in production server?
d.      If company code has 3 plant, 2 are within India (fiscal yearV3), 1 is abroad (fiscal year KR) &
branch office in USA (Fiscal year K9). All plants & branch office is used Asset.
Q-     How we can manage in asset accounting for different fiscal year for above scenario? 
e.      Scenario: If Dep. Key is wrongly configured & 6 month deprecation has been charged.
                                                              i.      Now client suggests that change depreciation percentage/key & charge

depreciation again from six month with different percentage .How it is possible?
f.          What you can /can’t move from dev. Server to testing server and production server?
g.       Doc:
h.      What are additional configurations after implementation of the project?
i.        What the major zreports?
j.        On which profit center would be decided?
k.       What is purpose to revaluate the asset at year end?
l.        In AFAB- Dep. Run what is repeat mode, & restart mode & unplanned mode?
m.    How many accounts group?
n.      What is item cost?
o.      For “xyz” goods have paid excise of Rs. 30. Now government announced 20% relaxation on
basic excise duty for this product or vice versa. How it can be adjusted. (Item cost).
                                                              i.      If there have 1000 material then