B.

Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

ACCOUNTS RECEIVABLE

1
uploaded by http://www.sapdocs.info/
B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

2
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

INTRODUCTION

The AR and AP acts as a sub ledger to FI- GL for managing the balances of Customers and
Vendors. The AR and AP components store all the information and balance details for
each customer and vendor.

The components of FI-AR are closely integrated with components of SD (Sale and
Distribution Module) and MM (Material Management Module) which, when properly
configured, support an automated SAP Sales Cycle.

The FI-AR sub-module in SAP contains the following features:

 A component to control customer credit exposure (Credit Management)

 A reporting function to monitor customer activity

 Incoming Payment processing (electronic or manual payment)

 A component to monitor past due customer invoices (Dunning)

Data is updated from AR and AP in real time to the FI-GL module. Most of the Data in AP
module is obtained from the Materials Management (MM) module. Similarly most of the
Data in AR module is obtained from the Sales and Distribution module.

3
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

Basic settings for Accounts Receivable:

a. Creation of customer Accounts groups:
FI – Customers – assets sales, scrap sale parties
SD – Customers – products sales
b. Define No. ranges for customers Accounts:
c. Assign No. ranges to customer accounts groups
d. Creation of 2 G/L Accounts
i. Sundry Debtors  Under Current assets, loans & advances
ii. Sales Accounts – Under sales account
e. Creation of customer master
f. Document types and No. ranges
Dr – Customer Invoices
DZ – Customer Payment
DA – Customer document for transfers/reversals

4
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

1. Creation of Customer Account Groups T.code: OBD2

SPRO  Financial Accounting  Accounts receivable and Accounts payable  Customer Accounts  Master data 
Preparation for creating customer master data  Define accounts groups with screen lay out (Customers)
When creating a customer account, you must specify an account group.

We use the account group to determine:

 The interval for the account numbers
 Whether the number is assigned internally by the system or externally by the user
(type of number assignment)
 Whether it is a one-time account
 Which fields are ready for input or must be filled when creating and changing
master records (field status)

Select New Entries button

Double click on company code data; it will take you to next screen

Double click on Account Management; it will take you to next screen

5
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

Here we have to select as Reconciliation Account is required entry.

Save.

2. Create No Ranges for Customer Account Groups XDN1

SPRO  Financial Accounting  Accounts receivable and Accounts payable  Customer Accounts  Master data 
Preparation for creating customer master data  Create Number Ranges for Customer Accounts
In this activity you create the number ranges for the customer accounts. To do this,
specify the following under a two-character key:
 A number interval from which the account number for the customer accounts is
to be selected
 The type of number assignment (internal or external number assignment)

In this screen you will notice that there is no company code selection. The customer
number is created at a client level. This means that the same customer number can be
extended by more than one company code.

6
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

Step 1 – Double click Change Intervals Button

Then it goes to next screen

Step 2 – Double click Insert Interval

Then Maintain Number Ranges

Save

3. Assign No Ranges to Customer Account Groups OBAR

SPRO  Financial Accounting  Accounts receivable and Accounts payable  Customer Accounts  Master data 
Assign No Ranges to Customer Account Groups
In this step we assign Number Range to Account Group.

7
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

4. Creation of GL Accounts FS00

G/L Account No: 200110 – Sundry Debtors
Step 1

Step 2

Step 3

8
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

Save
2) G/L Account No: 300000 – Sales Account

Save

9
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

4. Define Document Number Ranges T.code: OBA7/FBN1

SPRO  Financial Accounting  Financial Accounting Global Setting  Document  Document Header  Define Document Types.

Step 1

Double Click Change Intervals Tab, it will take us to next screen

Step 2

Double Click Insert Interval and enter the number ranges

Save.
Number Year From Number To Number Doc Type
18 2009 400001 500000 DR
14 2009 500001 600000 DZ
16 2009 600001 700000 DA

We create the number ranges for documents. For each number range we specify:

· A number interval from which document numbers are selected

· The type of number assignment (Internal or External)

10
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

5. Define Tolerance Groups for Customers OBA3

IMG  Financial Accounting  Accounts receivable/Payable  Business Transactions  Open Item Clearing 
Clearing Differences  Define Tolerances for Customers/Vendors
Step 1 – Click New Entries

Step 2 – Enter the Require Parameters

Note: The above Tolerance Group shall be applicable by default for both Vendors and
Customers under company code 1000.

11
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

6. Creation of Customer Master Data XD01

Accounting  Financial Accounting  Accounts receivable  Master records  maintain centrally  create
Step 1

Select the correct Account Group and press Enter

Step 2

Then Select Control Data

12
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

Step 3

In this step if the customer and Vendor is the same party we can enter the vendor
details here.

Step 4 – In this step Click the Company Code Data it takes us to Account
Updation Tabs

Step 5

Then Click Payment Transaction Tab

13
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

Step 6

Then Click Save

Step 7

When we click the save button system has created the Customer Account
Number: 1000000-Honeywell India.

14
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

6. Post of Sales Invoice F-22

Accounting  Financial Accounting  Accounts receivable  Document Entry  Invoice General

Posting Key: 01 – Debit

Posting Key: 50 – Credit

Posting Entry:

Honeywell Account Dr 10,000/- (posting Key: 01)

To Sales Account Cr 10,000/- (Posting Key: 50)

Step 1

Customer Account
Click Enter, it will take us to next screen

Step 2

Click Enter, it will take us to next screen

15
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

Step 3

Click Save and it will generate a posting document.

Step 4
Invoice Document 400001 has been generated.

7. How to View Customer Account FBL5N

Accounting  Financial Accounting  Accounts receivable Accounts Display/Change line items

Step 1

Step 2
16
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

8. Incoming Payment F-28

Accounting  Financial Accounting  Accounts receivable Document Entry  Incoming Payment

Step 1

Once we enter the required Data we have to click the PROCESS OPEN ITEMS
TAB, It will take us to next screen

17
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

Step 2: In this step it will strike off the open item against Inv.no:400001 in
Step 6 and when saving it and will generate the clearing document number.

9. View Customer Account FBL5N

Accounting  Financial Accounting  Accounts receivable Accounts Display/Change line items

Step 1

Step 2

It will now show the Balance Zero.

18
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

Customer Advance Payments

1) Creation of GL Account:100502-Advance from Customer under
Liabilities Account Group.
2) Link between Sundry Debtors and Advance from Customers.
3) Advance receipt posting.
4) View the Customer Balance
5) Sales Invoice Posting.
6) View the Customer Balance
7) Transfer of Advance from Special GL Account to Normal by clearing Special
General Ledger Account
8) View the Customer Balance
9) Clearing of Normal Items
10) View the Customer Balance.

1. Creation of GL Account FS00

G/L Account No: 100502 – Advance from Customers
Step 1

Step 2

19
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

Step 3

Save.

2. Link between Sundry Debtors and Advance from Customers

OBXR
SPRO Financial accountingaccount receivable and accounts payableBusiness transactionsDown
payment receiveddefine reconciliation account for customer down payment

Step 1

Double Clink on “A”, it will take you to next screen

Step 2: Enter Chart of Accounts 1000 and click enter, it will take us to next
screen

Step 3

20
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

Save.

3. Advance Receipt Posting F-29

Accounting financial accountingaccount receivable Document Entry Down payment

21
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

4. View Customer Account FBL5N

Accounting  Financial Accounting  Accounts receivable Accounts Display/Change line items

5. Post of Sales Invoice F-22

Accounting  Financial Accounting  Accounts receivable  Document Entry  Invoice General

Posting Key: 01 – Debit

Posting Key: 50 – Credit

Posting Entry:

Honeywell Account Dr 10,000/- (posting Key: 01)

To Sales Account Cr 10,000/- (Posting Key: 50)

22
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

Press Enter

Press Enter

23
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

6. View Customer Account FBL5N

Accounting  Financial Accounting  Accounts receivable Accounts Display/Change line items

24
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

7. Clear Customer Down Payment F-39

Accounting  Financial Accounting  Accounts receivable Document Entrydown Payment Clearing
Transfer of Advance from Special GL Account to Normal GL Account by Clearing Special G/L Accounts

25
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

8. View Customer Account FBL5N

Accounting  Financial Accounting  Accounts receivable Accounts Display/Change line items

26
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

9. Incoming Payment F-28

Accounting  Financial Accounting  Accounts receivable Document Entry  Incoming Payment

27
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

10. View Customer Account Balance FBL5N

Accounting  Financial Accounting  Accounts receivable Accounts Display/Change line items

28
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

11. General Information of Customer

ACCOUNTS RECEIVABLE Table Name
Customer master KNA1
Customer / company KNB1
Cleared items BSAD
Customer Open items BSID
Customer sales data KNVV
Bank details KNBK
Customer hierarchy KNVH
Customer partners KNVP
Shipment data for customer KNVS
Contact persons KNVK
Customer master tax indicator KNVI

29
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

CREDIT MANAGEMENT

30
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

It concerns with setting Credit Limits on Customers.

The system can automatically block deliveries (or give a warning message) in case of
Customers who have exceeded their credit limit.

Note: The configurations setting for Credit Management are performed by both SD
and FI Consultants. Here we discuss FI Settings only.

Credit Control Area

It’s an organization unit that is responsible for granting and monitoring Credit. We
set the Credit limits for Customers and monitor the same at the Credit control Area
level.

Credit control can be performed at:

A) Company Code Level

In this case we assign each Company code to a separate credit control
area.

B) Cross Company Code Level.

In this we assign multiple company codes to given credit control area.

Available Credit
It is the limit up to which we can accept the sales orders from a customer
based on credit limit.

31
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

1. Define Credit Control Area OB45

SPRO  Enterprise Structure Definition Financial Accounting  Define Credit Controlling
Area

Click and update the following.

Click Save .

Risk Category:
This provides a way to group customers with a similar credit rating ( Credit Risk).

Representative Group:
It represents the credit manger (who is an employee of your organization) who has
been assigned to a given customer account.

2. Assign Company code to Credit control Area OB38

SPRO  Enterprise Structure Assignment Financial Accounting  Assign Company code to
Credit Control Area

Save
3. Create Risk Categories OB01
SPRO  Financial Accounting Accounts Receivable and Accounts Payable Credit
Management  Credit Control Account  Define Risk Categories

32
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

Click and update the following.

Click Save .

4. Define Credit Limit for Customer FD32

Accounting  Financial Accounting Accounts Receivable Credit Management  Master
Data  Change

Press Enter

33
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

Total Amount: This represents the overall credit limit for customer may receive
across all credit controlling Areas.

Individual Limit: This amount represents the maximum credit limit for the
customer may receive with in a Credit controlling Area.

Click Next Screen , it will take us to next screen

Click Save .

34
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

5. Check Customer Balances FBL5N

Accounting  Financial Accounting  Accounts receivable Accounts Display/Change line
items

Click Execute

Now we see the customer Balance is 30000/- and we have given the credit limit for
the customer is 40,000/-

35
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

6. Post of Sales Invoice F-22

Accounting  Financial Accounting  Accounts receivable  Document Entry 
Invoice General

Press Enter

Press Enter, it gives the warning message

Note: We can configure the settings such that system gives an error
message wherever the credit limit is exceeded.

Again Press Enter, it takes us to next screen

36
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

Save

Note: As we have not implemented SD Module, it is not possible system to

throw error message when the credit limit is exceeded for the customer.

We can do the setting to throw error message in SD Module as follows.

SPRO  Sales & Distribution  Basic Functions  Credit Management Risk

Management Credit Management Risk Management Settings  Credit Management
 Define Automatic Credit Control OVA8

37
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

DUNNING

38
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

Dunning is a Germany word which means a “reminder to the party”.

Some times your business partner may fall behind payments. Then you can send
them a payment remainder or a dunning notice to remind them about their
outstanding debts

We can configure Dunning Procedure to customers as well as vendors. The system

Dun Open items from a customer or vendor in which the overdue item has created a
debit balanced.

Let us now go through the steps involved in Configuring Dunning.

1. Define Dunning Area OB61

SPRO  Financial Accounting  Accounts receivable & Account Payable Business Transactions Dunning
Basic Setting for Dunning  Define Dunning Areas

Dunning areas are used if several organizational units are responsible for carrying
out dunning within a company code. These organizational units are represented by
dunning areas in the SAP system. Dunning areas can correspond to a division, a
distribution channel, a sales organization or a business area. The dunning procedure
is controlled and the dunning notices are sent separately per dunning area.

The use of dunning area is optional.

Step 1

Click

Step 2

Save.

2. Define Dunning Procedure FBMP

SPRO  Financial Accounting  Accounts receivable & Account Payable Business Transactions Dunning
Dunning Procedure  Define Dunning Procedures.

Here we enter the settings that control the dunning program

Dunning procedures are company code independent. They determine the dunning
interval, the grace periods for the due date determination, and the number of
dunning levels.

We are configuring the dunning program for items which are in arrears for 30 days. We
do not want any interest to be calculated.

Dunning Intervals: It defines the minimum time gap between the dunning notices.

39
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

No of Dunning Levels: A Dunning Level signifies the degree of politeness to be

incorporated in a Dunning notice. A Dunning Level defines the number of overdue
days corresponding to a line item before it is dunned at a given Dunning Level.

Ex:
Dunning Level Degree of Politeness Dunning Level Interval
(No of days overdue)

DL”1” Most Polite 7-14 Days

DL”2” Less Polite 15-21 Days
DL”3” Slightly threatening 22-28 Days

Minimum days in arrears: Days in arrears after which a dunning notice will be
sent.
Ex: We have accepted the Terms of Payment with in 30 days with customer but we
have not received the payment as per terms. In that case it will generate the
Dunning notice (Payment Reminder) to Customer.

Grace Period: The Grace period is subtracted from the number of days overdue in
order to determine the Dunning Level.

Ex: Days over due = 16 days Grace Period: 3 days

Therefore, no of overdue days for determining Dunning Level= 16-3=13 days.
Therefore from the table above, DL=1

40
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

Step 1

Click New Procedure

Step 2

Update the following

41
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

Step 3

Click on

For dunning levels we assign the number of days in arrears so that the next letter is
printed which is worded differently

Step 3

Click on

Update the following

42
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

Step 4

Click on button, so it will go to the following screen.

Press Enter

Step 5

Double Click on Dunning Texts button. The following window

will appears

43
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

Press Enter or

Now press on Back button , so it will take to 1st screen , now press on

save .

Step 4

Click Environment  Company code data

44
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

Click on

Click on

3. Assign Dunning Procedure to Customer Master Records

XD02
Accounting  Financial Accounting  Accounts receivable  Master records  maintain centrally  create

In the customer Master Data we need to update the Dunning Procedure.

45
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

4. Post of Sales Invoice F-22

Accounting  Financial Accounting  Accounts receivable  Document Entry  Invoice General

46
uploaded by http://www.sapdocs.info/
B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

47
uploaded by http://www.sapdocs.info/
B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

48
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

One more transaction

49
uploaded by http://www.sapdocs.info/
B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

50
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

Save

51
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

5. View Customer Account FBL5N

Accounting  Financial Accounting  Accounts receivable Accounts Display/Change line items

52
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

6. Execute Dunning F150

Accounting  Financial Accounting  Accounts receivable Periodic Processing Dunning

Click on

53
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

Click on

Click Back

Click on

Click

54
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

Click on

Press Enter till Dun. Selection Complete

55
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

Click on

Click Continue button or Enter

56
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

Now Click Back and Click on Dunning Printout

57
uploaded by http://www.sapdocs.info/
B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

58
uploaded by http://www.sapdocs.info/
 B.Madhusudhan Rao SAP FICO TRAINING –Accounts Receivable

Click on

59
uploaded by http://www.sapdocs.info/