By

Pooja Kumbar

SAP FICO
HENRY HARVIN
INTERNSHIP

Project 3
“ACCOUNTS RECEIVABLE”
 INDEX
SL CONTENTS PAGE
NO NO
1 Introduction to Accounts Receivable 1

2 Create Customer Account Groups 2

3 Create Number Ranges for Customer Accounts 5

4 Assign Number Ranges to Customer Account Groups 6

5 Define Tolerances Group for Customer 7

6 Customer Payment Terms 9

7 Create Customer Master Record 11

8 Dunning Procedure Configuration 15

9 Summary Tables of Account Receivable 20

 ACCOUNTS RECEIVABLE
INTRODUCTION
Accounts Receivable is a submodule of SAP FI used to manage and record Accounting data
for all the customers. It handles customer invoices, approvals, payments, and other allied activities.
Any postings made in Accounts Receivable is updated in General Ledger G/L as well. The
Accounts Receivable submodule has tons of reports and forecasting features to track
customer/vendor outstanding and payments.
The chief processes covered in the sub-module are

• Maintain Master Data

• Credit Management
• Invoice Processing
• Cash Receipts and Payments
• Accounts Analysis and Reconciliation
• Reports
 ➢ CREATE CUSTOMER ACCOUNT GROUPS
MEANING OF CUSTOMER ACCOUNT GROUPS
The account group is a classifying feature within customer master records. The account group
determines in which number range the customer account number should be. Whether the number is
assigned by the user or by the system, which specification are necessary or possible in the master record.
In this, we are going to configure the following customer account groups in SAP.

Group Name

TK01 Domestic Customers

TK02 Export Customers

TK03 One-Time Customers

STEPS TO CREATE CUSTOMER ACCOUNT GROUPS

We can define a Company in SAP FICO by using:

• Navigation Path: SPRO – SAP Reference IMG – Financial Accounting (New) – Accounts Receivable
and Accounts Payable – Customer – Master Data – Preparation for Creating Customer Master Data
– Define Account Groups with Screen Layout (Customers)
• Transaction Code: OBD2
Step 1) Enter Transaction code “OBD2” in the command field and enter to continue. As shown in
the below image.

Step 2) on change view “customer account groups” overview screen, click on new entries button to
define new customer account groups in SAP as per the company requirements.
Step 3) On new entries customer account groups screen, update the following details.
• Account group: – Update the key that identifies the customer’s account group in SAP. You
are allowed to enter up to 4 alpha numeric digits.
• Description: – Update the description of account group.

Click on save button, choose customize request and save the configured data.

Step 4) Now double click on “General Data” option. General data is all related to common
information of the customers.

Now double click on the subgroups and set the field status of the fields as the optional, suppressed,
required and display.
After maintaining the field status fields for customer accounts general data, return to main screen
by pressing function F3 key or back button.

Step 5) Now double click on company code data and double click on subgroups of company code for
maintaining the field status of the fields of company code as optional, suppress, required and
display.
• Make the Reconciliation account as required entry.
• Choose other field as suppress or required entry or optional entry or display as per the
company requirement.

Click on save button to save the data.

Step 6) Now double click on sales data for maintaining the field status group related to SAP SD data.
Double click on subgroups of sales data and make fields as optional, required, display as per the
requirements.

Click on save button and save the configured customer account groups details.
 ➢ CREATE NUMBER RANGES FOR CUSTOMER ACCOUNTS
In this configuration activity we can maintain number ranges for customer master data which
later we are able to use for assigning them to account groups. You can have either externally or
internally assigned number ranges.

STEPS TO CREATE NUMBER RANGES FOR CUSTOMER ACCOUNTS

We can define a Company in SAP FICO by using:

• Navigation Path: SPRO – SAP Reference IMG – Financial Accounting (New) – Accounts Receivable
and Accounts Payable – Customer Accounts – Master Data – Preparation for creating customer
master data – Create number ranges for customer accounts
• Transaction Code: XDN1
Step 1) Enter Transaction code “XDN1” in the command field and enter to continue. As shown in the
below image.

Step 2) On range maintenance customers screen, click on intervals button for maintaining the
number ranges for customer account groups in SAP.

Step 3) Click on “+” (insert interval) button.

Step 4) Now update the following details.

• No: – Update the two digits key that defines the customer accounts number range intervals
serial number.
• From No: – Enter the starting number range interval.
• To Number: – Enter the last number of customer accounts number range.
• Ext: – This is an optional configuration, if you want to choose this number range interval as
external assignments select the check box.

Click on save button and save the configured details.

 ➢ ASSIGN NUMBER RANGES TO CUSTOMER ACCOUNT GROUPS
After the creation customer accounts groups and number ranges for customer accounts, the
next step is the assignment of number ranges to customer account groups. You can assign one
number range interval to one or more customer account groups.

STEPS TO ASSIGN NUMBER RANGES TO CUSTOMER ACCOUNT GROUPS

We can define a Company in SAP FICO by using:

• Navigation Path: SPRO – SAP Reference IMG – Financial Accounting (New) – Accounts Receivable
and Accounts Payable – Customer Accounts Master Data – Preparations for creating customer
master data – Assign number ranges to customer account groups
• Transaction Code: OBAR
Step 1) Enter Transaction code “OBAR” in the command field and enter to continue. As shown in
the below image.

Step 2) On change view “Assign Customer Acct Groups –> Number Range overview screen, click on
position button and enter customer account group key in the given field. So, the customer account
group key displays on top of the screen.

Step 3) Now update the customer account group number range interval “TK” in the field number
range as shown below.

Click on save button to save the details.

Step 4) Now you are prompted for customizing request number, choose the request and save the
assigned details.
 ➢ DEFINE TOLERANCES GROUP FOR CUSTOMER
MEANING OF TOLERANCES GROUP FOR CUSTOMER
Tolerance group enables the users to process transaction with the payment difference of
gain or loss that defined as per tolerance group for customers and vendors in SAP.
We can define the tolerance group as a set of assigned authorization of users using the SAP
ERP software. The tolerance group helps in specifying the group of accounting clerks to determine
the amounts granted to post. It is also responsible for setting up the limits for employees and
considers the highest amount an employee allowed posting items in a consumer or a vendor
account.

STEPS TO DEFINE TOLERANCES GROUP FOR CUSTOMER

We can define a Company in SAP FICO by using:

• Navigation Path: SPRO – SAP Reference IMG – Financial Accounting (New) – Accounts Receivable
and Accounts Payable – Business Transactions – Outgoing Payments – Manual Outgoing Payments
– Define Tolerances for Customers or Vendors.
• Transaction Code: OBA3
Step 1) Enter Transaction code “OBA3” in the command field and enter to continue. As shown in the
below image.

Step 2) On change view Customers/Vendors tolerances overview screen, click on “New Entries”
button to define new tolerance groups for vendors and customers as per the requirements.

Step 3) On new entries customer and vendor tolerances screen, update the following details.
1. Company Code: – Update the company code for which you would like to define tolerance
groups.
2. Tolerance group: – It is not required to update the tolerance group key, just update the
description text of tolerance group.
3. Permitted payment difference: – Update the payment differences of gain & loss with amount
and percentage i.e., 500 percentage and 1% adjustment by 100.
This means the user can process the business transaction with the payment difference of 500 with
gain or loss of 1 percentage. The SAP system doesn’t allow to process the transaction above the
payment differences amount.

After maintaining all the required details of customer and vendor tolerances, click on save button
and save the implemented tolerance group details.
 ➢ CUSTOMER PAYMENT TERMS
MEANING OF COMPANY IN SAP FICO
Terms of payment / Payment terms are used in SAP to establish the conditions between
business partner and organization to settle the payment of invoices. The conditions define the
invoice payment due date as per baseline date and the cash discount percentage offered for early
invoice payment.

STEPS TO DEFINE CUSTOMER PAYMENT TERMS

We can define a Company in SAP FICO by using:

• Navigation Path: SPRO – SAP Reference IMG – Financial Accounting (New) – Accounts Receivable
and Accounts Payable – Business Transactions – Master Data – Maintain Terms of Payment
• Transaction Code: OBB8
Step 1) Enter Transaction code “OBB8” in the command field and enter to continue. As shown in the
below image.

Step 2) On change view “terms of payment” overview screen, click on new entries button to create
new payment terms in SAP as per organizational requirements.

Step 3) On new entries payment terms screen, update the following details.
1. Payt Terms – Update the four digits key that identifies as terms of payment in SAP – TP06
2. Sales Text – Update the description name of payment terms as 10%-10days, 5%-25 days, 45
days due net.
3. Account Type – Choose the account type that the payment term is applicable for. If this
payment term if for vendor accounts, choose vendor option or for customer accounts choose
customer option. Choose both account type to use this payment terms for both customer
and vendor accounts.
4. Default for baseline data – Choose the baseline date based on the requirements and the
possible entries are No default, posting date, document date and entry date.
5. Payment Terms – Update the details of percentage, No. of days.
6. Explanation – After you update the payment terms, the system automatically generates
details information terms of payment.
After maintaining all the required details, click on save button and save the configured terms of
payment details in SAP.
 ➢ CREATE CUSTOMER MASTER RECORD
MEANING OF CUSTOMER MASTER RECORD
Both financial accounting module (SAP FI) and sales & distribution module (SAP SD)
uses customer master record in SAP. The customer master database contains the information about
the customers and this information is stored in individual customer master records in SAP. For each
customer we must specify a number and maintain corresponding details of customer.

The data in customer master records enables to control how the transactions data is to be
posted and processed for a customer. Master records are divided into the following areas.
• General data
• Company code data
• Sales area data

STEPS TO CREATE CUSTOMER MASTER RECORD

We can define a Company in SAP FICO by using:

• Navigation Path: SPRO – SAP Reference IMG – Accounting – Financial Accounting – Accounts
Receivable – Master Records – Maintain Centrally – VD01
• Transaction Code: VD01, XD01
Step 1) Enter Transaction code “VD01” in the command field and enter to continue. As shown in the
below image.

Step 2) The initial screen of customer create appears, update the following details.

Account group – It controls view and fields, specify the customer account group key.

Customer – You can keep this field as blank, so the system automatically generates the customer
number on basis of customer number range interval.

Company Code – Update the company code with which customer executes business transactions.

Sales Org – Specify the sales organization code with which the customer executed the sales
transactions.

Dist_Channel – Specify the distribution channel code with which the customer executes the sales
transactions.

Division – Update the division code with which the customer executes the sales transactions.
Step 3) On create customer: general data screen, update the following details.

Address – Update customer title, name of customer, address details and communication details like
mail id, telephone number, fax number, etc.

Marketing – Update the required details of customer like customer classification, industry type, etc.
Unloading Points – Specifies the location at which the goods are to be unloaded for the customer.

Step 4) Click on sales area data and update the following details.
Sales – Under this sales area, update the required details of sales order, Price group, customer price
procedure, customer hierarchy, etc.
Shipping – Under shipping update delivery priority, shipping conditions, delivery plant, etc.

After updating all the details for customer master data, click on save button and save the details.
Now you get a successful message as
 ➢ DUNNING PROCEDURE CONFIGURATION
MEANING OF DUNNING IN SAP FICO
Dunning is the process of Correspondence with the Customer/Vendor about pending bills (in sap
as we call it open items). In SAP we can schedule the Dunning Process and maintain different
Dunning Levels for Dunning run. The Dunning process involves the following steps:
1. Entering Parameters in the dunning program. The parameters of old dunning run can be
copied, and dates can be adjusted.
2. The Dunning run selects the accounts, examines them for overdue items, checks if they
must be dunned, and assigns dunning levels to them. All dunning data is stored in a
dunning proposal.
3. The Dunning Proposal can be edited, deleted, and recreated as often as necessary until
the dunning clerk is satisfied with the result.
4. If desired, this step can be skipped, and the dunning run can be followed directly by the
printout of dunning notices.
5. In One Click, Dunning notices are printed, and dunning data is updated in the master
records and associated documents.

STEPS TO DEFINE DUNNING PROCEDURE

We can define a Company in SAP FICO by using:

• Navigation Path: SPRO – SAP Reference IMG – Financial Accounting (New) – Accounts Receivable
and Accounts Payable – Business Transactions – Dunning – Basic Setting for Dunning – Define
Dunning Areas
• Transaction Code: F150
Step 1) Enter Transaction code “F150” in the command field and enter to continue. As shown in the
below image.
Step 2) In the next screen, Enter the Following
1. Enter the Dunning run date
2. Enter the Dunning run Identification

Step 3) In the Parameters Tab

1. Enter the Dunning Date
2. Enter the Date up to which the documents for dunning are to be considered
3. Enter the Company Code for dunning
4. Enter customers and vendors to be dunned

Step 4) Save the Dunning Parameters

Step 5) Schedule the Dunning run by pressing the Schedule button

Step 6) In the next screen select the printer to print the dunning notices generated
Step 7) In the next screen schedule the time of dunning run

Step 8) Check the Status of the Dunning run

Step 9) We can check the Dunning Notice in Spool Requests

SUMMARY TABLE OF ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE IN SAP FICO S/4 HANA

STEPS CONFIGURATIONS PATH TRANSACTION

CODE
Step 1 Create Customer SPRO – SAP Reference IMG – Financial OBD2
Accounts Groups Accounting (New) – Accounts Receivable
and Accounts Payable – Customer – Master
Data – Preparation for Creating Customer
Master Data – Define Account Groups with
Screen Layout (Customers)
Step 2 Create Number SPRO – SAP Reference IMG – Financial XDN1
Ranges for Accounting (New) – Accounts Receivable
Customer Accounts and Accounts Payable – Customer Accounts
– Master data – Preparation for Creating
Customer Master Data – Create Number
Ranges for Customer Accounts
Step 3 Assign Number With SPRO – SAP Reference IMG – Financial OBAR
Ranges to Customer Accounting (New) – Accounts Receivable
Account Groups and Accounts Payable – Customer Accounts
Master Data – Preparation for Creating
Customer Master Data – Assign Number
Ranges to Customer Account Groups
Step 4 Define Tolerances SPRO – SAP Reference IMG – Financial OBA3
Group for Customer Accounting (New) – Accounts Receivable
and Accounts Payable – Business
Transactions – Outgoing Payments –
Manual Outgoing Payments – Define
Tolerances for Customers or Vendors
Step 5 Customer Payments SPRO – SAP Reference IMG – Financial OBB8
Terms Accounting (New) – Accounts Receivable
and Accounts Payable – Business
Transactions – Master Data – Maintain
Terms of Payment
Step 6 Create Customer SPRO – SAP Reference IMG – Accounting – VD01, XD01
Master Record Financial Accounting – Accounts Receivable
– Master Records – Maintain Centrally –
VD01
Step 7 Dunning Procedure SPRO _SAP Reference IMG – Financial F150
Configuration Accounting (New) – Accounts Receivable
and Accounts Payable – Business
Transactions – Dunning – Basic Setting for
Dunning – Define Dunning Areas