Accounts Payable:

Topics
- Master data
- Special gl transactions
- Payment terms
- Credit memo
- Tolerance diff postings
- House bank
- App
- Dunning
- Fi-mm cycle (with flow in mm – doc generated in mm and fi)
- Fi-sd cycle (with flow in mm – doc generated in mm and fi)
- Taxation.
- Foreign currency valuation

1. What is configuration settings required to post vendor transactions

Ans. We need to create –

1. basic settings for vendor master creation :
* create account group with screen layout,
* define Number ranges for account group,
* assign no. ranges and define tolerances for vendor/customer.
2. vendor master creation (XK01/ FK01)
3. post transactions. (F-43)

2. What is vendor master data?

Ans. The vendor master contains information about the vendors that supply an
enterprise. This information is stored in individual vendor master records. A vendor
master record contains the vendor’s name and address, as well as data such as:

 Names of important contact persons (sales staff)

 Terms of payment
 The currency used for ordering from the vendor
 vendors are generally creditors (accounts payable), contains accounting
information, such as the relevant control account (reconciliation account) in
the general ledger.

the vendor master record is maintained by both Accounting and Purchasing.

3. How is the Vendor Master Record Structured?

Vendor master records contain important data of your vendors. You can also store
data in the vendor master record that applies to certain specific organizational levels
(e.g. company code, purchasing organization, plant) within your enterprise.

The vendor master record consists of three areas:

1. General data

Data that applies equally to each company code within your enterprise
(address, telephone number, language in which you communicate with your
vendor, etc.).

2. Company code data

Data kept at company code level (payment transaction data or number of

control account, for example).

3. Purchasing data

Data that is of importance with regard to your enterprise’s purchasing

activities and which is kept at purchasing organization level (such as contact
person or terms of delivery).

The following Data Retention Levels of particular relevance to the

wholesale/retail trade exist below the "purchasing organization" level:

 Vendor Sub-Range (VSR)

 Plant
 Vendor sub-range/plant

In addition to the data applicable to a specific purchasing organization, you

can maintain purchasing data or partner roles for a certain plant or vendor
sub-range (terms of payment or Incoterms, for example) that differ from that at
the purchasing organization level. Data specific to sub-levels that varies from
that stored for the higher-level purchasing organization in this way is referred
to simply as different data.

For more information, refer to the sections Maintaining Different Data, Partner
Roles in Purchasing, and Vendor Sub-Range in Purchasing.

4. What is the Function of the Account Group?

Ans. The account group determines, for example, that only those screens and
fields of the vendor master record that are needed for the relevant role of your
business partner.

The account group determines:

 The type of number assignment and the number range from which the
account number used by the system to identify the vendor is assigned
  Whether or not a one-time vendor is involved

 Which data retention levels below the purchasing organization are allowed
(for example, vendor sub-range)

 Which partner determination schemas are valid

The account group for One-Time-Accounts causes the address,

communication, and bank data fields to be suppressed during creation and
maintenance of a vendor master record. You must then enter this information
later on, at the time you create a purchasing document.

5. How are the Vendor Master Records Numbered?

Ans. Each vendor master record is assigned a unique number (the vendor's
account number used by Financial Accounting). You need this number to call up
the master record or to enter purchase orders. A vendor has the same account
number in all company codes.

The type of number assignment and the number range are determined through
the account group that you enter when you create a master record.

The number can be assigned internally by the system or by the user (i.e.
externally) when a master record is created. For external number assignment,
alphanumeric numbers are also allowed.

6. What is the difference main ledger and subledger?

Ans. It is the general ledger which is the main ledger.- reconciliation account
The total of the transactions in the subledger roll up into the general ledger. For example, a
subledger may be accounts receivable, or accounts payable, or fixed asset transactions

7. What is one time vendor?

Ans. A one-time vendor is a vendor with which you will have a very temporary relationship.
You can use a one-time vendor more than once, but one-time vendors are most often used for
one or two transactions.

When you enter an invoice for a one-time vendor, you leave the vendor number field blank
and select the One-time special form action. The application automatically assigns a vendor
number. When you enter the invoice, the One-Time Vendor subform displays. Use the
subform to type the one-time vendor name and address.

Example

You might hire a caterer for a special corporate celebration. You will want to pay the catering
company's invoice in the Accounts Payable application, but it's not worth defining the
company as a regular vendor if you will never receive another invoice from them. The
advantages of using a one-time vendor are:
  You don't invest time setting up a vendor that you won't use again.
 You can identify and purge one-time vendor records easily.

8. How do you specify vendor is a one time vendor ?

Ans . refer above ans.

9. Which no.ranges u assign for one time vendor?

Ans. Separate account group for one time vendors maintained.

10. Why do specify reconciliation account in vendor master?

Ans. SAP financial accounting has several sub ledgers, including accounts receivable,
accounts payable and asset accounting. An account is maintained for each customer,
vendor or asset in the sub ledger. When preparing financial statements the details of these
individual accounts are not necessary. Instead, every asset, customer or vendor account is
linked to a certain SAP reconciliation account, also known as a control account/main
ledger/general ledger. Each SAP reconciliation account is used to reconcile the sub
ledgers with the general ledger. SAP reconciliation accounts are reported on the financial
statements. The SAP general ledger is linked to the sub ledgers. For every transaction
posted in the sub ledger, the same value will be updated to the corresponding
reconciliation account.

For example, reconciliation account 160000 is used for trade vendors. Let’s assume we
have vendor A with account 36. If we post an invoice of $2000 to vendor A, account
36 will be debited for $2000 and the reconciliation account 160000 will also be debited
automatically for $2000.

11. What are the segments available to create vendor master

Ans. Refer 88 ans.

12. What is special gl transactions?

Ans. A business enterprise wishes to see certain business in its sub ledgers
separately unlike its routine transaction. They want certain identification to those
transactions so as to filter them from the lot with ease. The reason for identification
could be important. The transactions could be down payments, individual value
adjustments and so on.
How does Special G/L functionality work?
 
SAP has a concept of reconciliation accounts where in each sub ledger has a GL
Account known as a reconciliation account maintained in its master data. The
Reconciliation Account field can be found in the company code segment of the
customer/vendor record. Transactions posted in the sub ledgers are also posted to
the reconciliation Account. The aim is to have the values reflect in the Financial
Statements through General Ledgers. To determine the balances of the Account
Payables and Account Receivables the reconciliation Account can be displayed
instead of searching for the values in the sub ledger.
 
Special G/L Transactions are transactions in the Accounts Payables and Accounts
Receivables, which are, displayed separately In the general ledger and the sub
ledgers. Transactions in the sub ledgers are linked to the general ledger by the
reconciliation account defined in the sub ledger master record, If the sub ledger
account assignments are made using a special G/L indicator, the postings are made
on an alternative Reconciliation Account (Special G/L Account) to allow these
transactions to be displayed separately.
 
Special G/L Transactions Classes:
As per SAP the special G/L transaction can be roughly divided as per their main
purpose into three classes:
 
 Down Payments
 Bills of Exchange
 Other Transactions
 
Transactions in connection with down payments: The SAP System provides
special pre configured programs and entry screens for the administration of
requested, received and used down payments for AR and AP sub ledgers. These
are integrated with dunning and payment programs, which is a big advantage so as
to track, and post, without having the DP of each customer/vendor.
 
Transactions in connection with Bills Of Exchange: Bills of Exchange are used
to deal with country-specific particularities. The SAP system contains special pre
configured programs and screens and the transaction codes are available for BOE in
AR and AP.
 
 
Other Transactions: There are other transactions also available in special GL
transaction in the menu under the Others like Guarantees, individual value
adjustments etc.
 
Types of Special G/L Transactions:
 
 Automatic Offsetting Entry (Statistical).
 Noted Item
 Free Offsetting Entry
 
 Automatic Offsetting Entry (Statistical):
1. These entries are always made on the same offsetting account. To
simplify the posting procedure
2. The number of the account for the offsetting entry is defined in
customizing. Hence the offsetting is made automatically by the system.
3. When open items are cleared system clears the offsetting account
automatically.
4. These transactions are called statistical postings as they are in the notes
of Financial Statements.
 
 Noted Item:
1. Noted item are Special G/L Transactions with informational character,
which only remind the user about due payments or payments to be made.
2. They are not displayed in GL.
3. Only one line item is created when a noted item is created
4. No offsetting entry is made.
5. No zero balance check is made.
6. Payment Program and dunning program also consider noted item for
further processing.
7. Noted items are open items
8. Always activate line item display for these accounts.
9. No Transaction figures are updated in Noted Items.

 Free offsetting entry

1. Special G/L transactions defined as free offsetting entries create proper
postings in the General Ledger.
2. The Alternative reconciliation account is debited or credited automatically
depending on the type of posting. The user must enter the G/L account
while making the entry.
3. Usually a part of financial statement.
4. Posting with freely enterable/selectable offsetting account.

13. What is credit memo?

Ans. A credit memo document issued to a customer by a seller which reduces the seller's
accounts receivable and its net sales. May be due to damaged goods. A debit memo is a
transaction that reduces Amounts Payable to a vendor because; you send damaged goods
back to your vendor.

14. What is the relation of invoice reference with credit memo?

Ans. A credit Memo without an Invoice Reference is always due on the Baseline Date. As a
result, it is due immediately at baseline date.

Summary:

1. Credit Memo with Invoice Reference have the same Terms of Payment and Baseline Date
as the Invoice.

2. For the Credit Memo without Reference to an Invoice, there are 2 methods available for
choosing the due Date :

Even if you enter payment terms in credit memo, it wont consider .

To make Credit Memo is due based on the Payment Terms. For this, you must enter the
Indicator "V" in the Credit Memo Field BSEG-REBZG "Invoice Ref", in addition to the
specified Payment Method.

15. Explain payment terms with cash discount and installment payments?

Ans. Terms of payment are rules agreed with your business partners. Cash discounts are
reductions to payments made within a specified time period. Installment payments are
payments with limited amounts based on conditions

16. What is payment block?

Ans. A ‘Payment Block’ prevents you from paying an open item of a vendor. The
payment block is entered in the ‘Payment Block’ field in a vendor master record or
directly in the open line item. Use the payment Payment Block Reasons.’ You may
use the SAP delivered payment block indicators (A, B, I, R, etc.) or create your own.

17. How do u release blocked invoice for postings?

Ans. An invoice request is blocked for payment until its manually released. You can release
the invoice by using t-code MRBR.

18. Who is an alternate payee?

Ans. Alternative payee is the party to whom you will be making payments on behalf of
the original vendor. The payment program can make payment to a vendor other
than the one to which the invoice was posted. Payment is made to an alternative
payee, which must be specified in the master record.

You can specify an alternative payee in the general data area and in the
company code data area. The alternative payee specified in the general data
area is used by every company code. If you specify an alternative payee in both
areas, the specification in the company code area has priority.

To always make vender payments to an alternative payee, proceed as follows:

1. Create a vendor master record for the alternative payee. Block this account
against posting.
2. Specify the account number of the alternative payee in the Alternative payee
field within the payment transactions section of the vendor master record.

When making payments for this vendor, the payment program will always
access the name and address of the alternative payee.

In some instances it may be better to specify a payee in the document. To do

this, you have to activate this function by selecting the Payee in document
indicator in the general data area. When you enter documents for this
account, the system displays a field in which you can enter an alternative
payee.
 The system always uses the payee which is most specific. This means that
when you enter a payee in a document, it has priority over payees specified in
the master record.

19. What is trading partner concept?

Ans. Trading partner is your business partner within Group with whom you are doing
business.

In order to identify Inter Company transactions Trading partner field is used.

You need to define all the Group Companies as company in SAP and all the defined
Companies will be available for selection in Trading partner field.

Trading partner can be defaulted in GL, Customer or Vendor Master. If you need you can
populate trading partner at Document level too by doing settings in Document Type Master in
T Code OBA7.

Trading partner is normally used to control (payment/transaction) vendor/customer business

with the group. Something like group/inter group business. You have to go to master record.
for eg, in customer master, go to CONTROL DATA tab so see Acccount Control, in which
you have provide trading partner number/reference.

Using Trading partner, the inter company transactions gets eliminated in the consolidation.

20. What is dual check in master records?

Ans. In SAP there is an inbuilt check for ensuring that duplicate invoices are not posted.

The check can be achieved by a combination of the following:

 Vendor Master data maintained with Indicator for duplicate invoices and credit
memos checked
 Message to be displayed on entering a duplicate invoice should be maintained as –
Error Message Type
 Additional parameters configured in SPRO to control the fields to be checked in case
of Logistics Invoice Verification
 Making the Reference document number field as a mandatory field for all the
document types used for posting vendor invoices
 Maintain the field – Check Flag for Double Invoices and Credit Memos (LFB1-
REPRF), as mandatory, for the account groups being used for vendors

Duplicate Invoice Check – Relationship with Invoice Type:

The Duplicate Invoice check carried out by the system will depend upon whether the invoice
is a:

 FI Document or
 Logistics Invoice document
Process Flow of Duplicate Invoice Check depending upon Invoice Type:

Fields checked in case of Logistics Invoice Verifiaction:

In case of Logistics Invoice, the following six fields would be checked to identify duplicate
invoices in standard SAP:

 Company Code
 Vendor
 Currency
 Gross Invoice Amount
 Reference document number
 Invoice Date

Out of the above fields, there is an option available to skip the checking of any of the
following three fields while trying to identify duplicate invoices:

 Company Code
 Reference document number
 Invoice Date

This can be acheived by carrying out the requisite configuration in the transaction –
OMRDC.

Whether the duplicate invoice checks would consider the fields Company Code, Reference
Document Number and Invoice Date would depend upon whether these fields are configured
as activated or deactivated in OMRDC.

Description Transaction Code

Set Check for Duplicate Invoices OMRDC

Screenshot of Duplicate Invoice Check Configuration:

Fields checked in case of FI Invoices:

The fields to be checked to identify duplicate invoices in the case of FI invoices depend upon
whether the reference document number is filled or not.

Reference document number is NOT filled up:

In the cases where the reference document number field is not filled up, the following fields
would be checked to identify duplicate invoices:

 Company Code
 Vendor
 Currency
 Invoice Date
 Amount in document currency
Reference document number is filled up:

In the cases where the reference document number field is filled up, the following fields
would be checked to identify duplicate invoices:

 Company Code
 Vendor
 Currency
 Invoice Date
 Reference document number

Illustration of Duplicate Invoice Check:

SAP Configuration – Define the field Double invoice validation as mandatory field:

Maintaining the field status of the field – Double invoice validation as a required entry field
will ensure that whenever a vendor master is created the field Check Flag for Double
Invoices or Credit Memos in the Payment Data tab of the company code segment of the
vendor master is always checked.

Master data – Maintain Vendor Master:

SAP Configuration – Maintain Document Type:

Maintain the field – Reference Document Number (XBLNR) in all the document types used
for posting vendor invoices as requiring an entry while posting invoices.

This will make the user mandatorily enter a Vendor Invoice number in the field. This will aid
in the process of duplicate invoice check in the system.

Reference document number field marked as mandatory:

21. Tolerance difference postings

Ans. Tolerance is the Minor differences between the Invoice amount and the amount
received from the customers/amount paid to the vendors. If the difference is within the
tolerance range, the system automatically generates a difference line on a neutral
income/expense account for small differences for invoices with debit/credit differences when
posting the invoice.

22. House bank

Ans. The house banks of your company are the banks that your company has an account with.
You can use them to process payment transactions.

In the SAP system, house banks have the following characteristics:

 They are assigned to company codes.

 Each company code can have multiple house banks.

  Each house bank of a company code is represented by a bank ID.

 Every account at a house bank is represented by an account ID.

In the SAP system, you use the bank ID and the account ID to specify bank details. Bank ID
and account ID are used, for example, for automatic payment transactions to determine the
bank details for payment.

Each company code can have multiple house banks. Each house bank of a company code is
represented by a bank ID.

23. You have four house banks. The end user has to use the third bank (rank order) only
for check payments. Can you make payments through the third house bank? If so, how
is it possible?

Ans. Customize the priority as 1 for the third house bank. Otherwise, while posting the
invoice, you can specify the house bank from which you intend to make the payment

24. Explain briefly how you can import electronic bank statements into SAP.
Ans. A text file is received from the bank which is then uploaded into the SAP system.
The file contains details of the company’s bank movements e.g. cheques, bank interest,
bank charges, cash receipts etc. Depending on the system configuration SAP will attempt
to book these
transactions automatically to the correct accounts to avoid the need for manual entries
by SAP users. Any postings which the system cannot derive automatically can be booked
through “post-processing”
25. How is Bank Reconciliation handled in SAP?
Ans. The bank reco typically follows the below procedure:
First, the payment made to a Vendor is posted to an interim bank clearing account.
Subsequently, while performing reconciliation, an entry is posted to the Main Bank
account. You can do bank reconciliation either manually or electronically.

26. How do you configure check deposit?

Ans. The following are the steps for configuring check deposit:-
Step1: Create account symbols for the main bank and incoming check account.
Step2: Assign accounts to account symbols
Step3: Create keys for posting rules
Step4: Define posting rules
Step5: Create business transactions and assign posting rule
Step6: Define variant for check deposit

27. What is the clearing basis for check deposit?

 Ans. In the variant for check deposit we need to set up the following
a) fields document number ( which is the invoice number),
b) amount
c) Short description of the customer.
The document number and the invoice amount acts as the clearing basis.

28. How do you configure manual bank statement?

The following are the steps for configuring manual bank statement:-
Step1: Create account symbols for the main bank and the sub accounts
Step2: Assign accounts to account symbols
Step3: Create keys for posting rules
Step4: Define posting rules
Step5: Create business transaction and assign posting rule
Step6: Define variant for Manual Bank statement

29. How do you configure Electronic bank statement

The steps for Electronic Bank Statement are the same except for couple of more additional
steps which you will see down below
Step1: Create account symbols for the main bank and the sub accounts
Step2: Assign accounts to account symbols
Step3: Create keys for posting rules
Step4: Define posting rules
Step5: Create transaction type
Step6: Assign external transaction type to posting rules
Step7: Assign Bank accounts to Transaction types

30. What is a house bank?  What information does it contain?

Ans. A house bank refers to the bank a company uses for receivables and/or payments.  It is
any bank with which your company code does business.  Each house bank contains a
company’s bank accounts.  It also contains a bank key that defines address and control data
for the bank.  The house bank establishes a link between the various G/L cash accounts and
the actual bank accounts.

31. How does data enter the bank directory?

Ans. Automatically, if master data exists for the Bank Directory on tape or disk. ).  Data can
also be manually entered when creating a customer or vendor master record, a one-time
account, or by directly creating an account.

32. What is the relationship between a bank account and a G/L account master record?
Ans. A G/L account master record must be created for each bank account.   The house bank
and account ID must be entered in the GL account master record to ensure the accounting
transactions involving the bank account will be reflected in the general ledger.

33. Where are bank master records created in SAP?

Ans. Unlike customer, and vendor master records, the bank master records may be
maintained on the configuration side in SAP.  They are also created on the application side in
the Banking and Treasury sections.

34. What does the Bank Directory contain?

Ans. The Bank Directory contains complete details about each house bank.

35. Describe the purpose of the Bank Key.

Ans. The Bank Key is a unique country-specific code.  The system uses a combination of the
Country Code/Bank Key to identify the house bank.

36. Describe the Account ID.

Ans. Each of the bank accounts created within a house bank must be assigned a unique freely
definable five-character Account ID.  The Account ID is used for the payment program
specifications and in the account master records to make a reference to the bank account.

37. What is IBAN Number in SAP? What does it works?

Ans. IBAN stands for "International bank account number" while creating bank accounts
in FICO we can use this . Most of the time IBAN is used for foreign currency payments
time.

38. What is automatic payment program?

Ans. Automatic Payment Program(APP) serves the purpose payment to a vendor invoices
automatically. APP is used to find out due/overdue invoices and to process a list of customer
and vendor invoices to make payments in one go.

39. Define parameters in app?

Ans. Before you can start the payment run, you first have to enter the payment
parameters. You use these payment parameters to define when, for which period,
which company code, which business partners, and so on should be considered by
the payment program.

40. What is free selection tab?

Ans. Free selection tab in F110 is to "include" or exclude the values in your payment
proposal. When you press F4 or drop down list in this tab, you get Document, Vendor master
record, Customer master record. Select the relevant field, then fill the field values.

If you select "Exclude values", those values will be excluded, otherwise they will be
included. You cannot select more than 3 fields.

41. Define additional log tab? And how can it be used in trouble shooting

Ans. In this TAB you can select the logs you want the system to create if there are any errors
or for all items even if there are no errors. If the results of the program is not what you
expected, then you can read the log to understand the reason why the program did not select
what you wanted.

42. if I enter 1 - 9999999 in the parameters and the same value in the additional log, the log
will only be for those accounts that are being processed, right?
Ans. Proposal/Payment Log is generated for all the vendors on 'parameters' tab
(whether paid or not paid), which are also on Additional Log tab.
Case 1: Vendors in Parameter 1-1000 and in Additional Log 1-9999: Additional Log will
be created for Vendors 1-1000.
Case 2: Vendors in Parameter 1-9999 and in Additional Log 1-1000: Additional Log will
be created for Vendors 1-1000.

43. Automatic Payment Program: F110_Purpose of Vendor number ranges

in Additional log tab

Ans. This document explains the purpose of maintaining “Vendor Number Ranges” while
maintaining parameters in F110 in the “Additional Log” tab and the difference it can make if
the same is not maintained.

SAP FI supporting team receives few tickets on Automatic Payment program (SAP
Transaction Code-F110), reporting that there are few invoice line items in the Payment
Proposal falls into exception with error codes (for e.g. 001,003,006,007,16 & 98). There are
nearly 63 error codes defined in SAP, and the error codes 007 is very generic and difficult to
identify the reason for those invoice line items that falls into exception.  The error message
instructs to refer to the job log, but still the log messages are very deceptive.
Error! Filename not specified.

Error! Filename not specified.

   

What is missing?

When the BU/user executes Automatic Payment Program, usually the parameters/options in
the “Additional log” section were ignored, because users were not trained to understand the
benefit of maintaining the parameters in the “Additional log” section.

Case 1: When Vendor number range in Additional Log tab is not maintained

Error! Filename not specified.

Error! Filename not specified.

Case 2: When Vendor number range in Additional Log tab is maintained

If the “Vendor Number ranges” are not maintained in the F110 “Additional Log” section,

1. Affects Consultants Productivity– When the “Vendor Number Ranges” are not
maintained in the F110 Additional Log section and if particular invoice line items is
missing some information as per the configuration in SAP, then the system throws the
error messages and 007 is not very clear. Once the ticket is assigned to the respective
 FICO Consultant, then the same scenario needs to be replicated in the Quality system.
Sometimes the same vendor and related master data settings will be missing in
Quality. In such cases, Consultants need to create a similar vendor with the same
settings as in Production system and replicate the invoice line items. It may consume
much time depends on the source of invoice/Down Payment Request (e.g. whether the
invoice/down payment requests are received from core FI module or through MM
Module via Purchase Orders).
2. User’s knowledge is not enhanced– If the users were trained to maintain the “Vendor
Number Ranges” in the F110 transaction, then the error can be corrected by the user,
unless if there is any configuration/setting is required in IMG.

Proposed Solution:

The “Vendor Number Ranges” in the F110 “Additional Log” field to be made mandatory, so
that BU/User cannot create the Proposal and the system throws the error message, instructing
to maintain “Vendor Number Ranges”.

44. Define print/date medium tab?

Ans. Print/data medium TAB - Here you supply the program variant for all the payment
methods you are using. For e.g. in US if you use the 'Check' payment method, then in this
TAB you supply the variant for the RFFOUS_C program. If you are using EDI payment
method then a variant for the program RFFOEDI1 has to be supplied in this TAB.

45. What is the significance of next date of payment run

Ans. 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.

The general rule for receivables is that they cannot be paid until the baseline date for payment
has been reached. Such items are paid on or after the baseline date for payment, regardless of
when the next payment run is scheduled for.

46. What is status tab?

Ans. Status TAB - Once you enter all the information in the above 4 TAB's you will come to
the status TAB.

Initial status will be 'No Parameters have been entered'

Before you run the program, the status would be 'Parameters have been defined'.

After you run the proposal the status will change to 'Payment proposal has been created'.

After you run the Payment run the status will change to 'Payment run has been carried out.
Posting orders: 10 generated, 10 completed'.
Thus the status tells you in what stage of the Payment program you are in.

Please note that the buttons you see here is dynamic. Based on the status the button will
appear or disappear. But all the functionalities which these buttons offer can also be selected
using the dropdown list appearing at the top of the screen.

47. What is payment proposal?

Ans. The proposal does not make the actual payments by posting documents but shows a
simulation of the payment run. The proposal can then be edited if required before making the
actual payments. The actual payment run will include only the payments selected in the
proposal. This is very useful if certain adjustments need to be made manually while making
payments.

The proposal will show the vendors and customers which were selected for payments. The
vendors and customers for which the payment run can be carried out are shown in green and
the ones for which some errors exist is shown in red. Double clicking the vendors or
customers shows the documents and line items that have been selected to be included in the
payment run. The total incoming or outgoing payments are also displayed in the proposal run.

48. What happen if you exist payment proposal in between?

Ans.

49. What happens after payment run?

Ans. Once the payment run is completed the log can be seen to find which documents have
been posted by the automatic payment program. The payment log displays the documents
posted, the accounts which have been posted to and the amounts that have been posted by the
automatic payment program. The payment log also shows the payment method used to make
the payment and the house bank that will be used for transferring the funds.

50. How can you link customer and vendor master records? What is the purpose of
doing so?

Ans. if a specific business partner is your vendor but also your customer, linking their master
records together will allow the open AR invoices to be offset against the outstanding AP
invoices.

On the customer master there is a field “vendor” and likewise on the vendor master there is a
field “customer”. By entering these master data numbers, a link can be created between the
AP/AR subledgers for use in the payment program, dunning routine and the clearing of open
items.
51. How can we block, a particular payment term for a particular vendor.
Ans. We have Two Mothods for Vendor Block in APP 1. Vendor Creation : Block under
Automation Payment Transaction 2.APP Run : Edit Proposal Button in APP.

52. I run my app and I printed my check and after that I find that I made a mistake of wrong
payment to related vendor…. now what can I do…. can I stop app.. And can I stop payment
and can I delete proposal and payment in app???? And can I run new app towards new
vendor.
Ans. You will not be able to delete proposal after payment run. If you want to delete
proposal then, First you have to manually reset & reverse the posting generated FBRA.
Second, You have to delete payment run from EDIT > PAYMENT > DELETE OUTPUT.
Third and then you will be able to delete proposal EDIT > PROPOSAL > DELETE. For e.g.
It is like you have executed the third step and then you want to reverse the second step. So,
you have to reverse or delete the third step and then you will be able to delete the second step.

53. I have two companies one is parent company & another sister company. Both
companies have same vendors & customers. Can I assign dunning procedure for both
companies?
ANS. U have to assign a dunning procedure seperately for each customer and vendor in
their respective master record in company code level. And then select company codes
both parant and sister concern. then select cust and vend in parameter maintain.

54. Name the standard stages of the sap payment run?

Ans. Giving parameters, payment proposal, payment run.

55. . Can anyone suggest me how the payment method will play role while selecting the
open items into payment proposal?

Ans. All the open item in the automatic payment run are selected on the basis of
parameter Docs entered up to date and Posting Date of the next Payment Run

56. If we give payment method 'X' in the run then will all the open items with payment
method X (open item/Master data)only get selected in the payment proposal when they
are due or all the due open items are get selected in the proposal with red color light
and the open items with payment method 'X' will be in green light.

Ans. All the open items due or in other words if an item is already overdue on the date of
the next payment run, or would lose cash discount, the system consider or pick item in
proposal. If system find payment method (for e.g.. X) in master data or item data in marks
item as green in proposal otherwise it mark it as exceptional item which cannot be paid
until you assign payment method manually.

57. Where should I look for the configuration for getting selected the due open items basing
on the payment method, not all the due open items?
 Ans. System will pick all the due open item within the range of next payment run.

58. Explain briefly how you can import electronic bank statements into sap

Ans. Normally, you receive the statement files using software in accordance with the
Banking Communication Standard (BCS), which calls the bank and retrieves the files by data
transfer. Banks in almost all countries sell this software for data transfer, and provide training
in using it. Data transfer with banks usually occurs on a contractual basis.

After importing you can upload bank statement in t-code : FF.5

59. What is the difference between residual payment and partial payment?

Ans. Partial payment in SAP is a payment that is posted to an account without any open
items being cleared. When posting, the system marks the document number of the original
open item in the line item for the partial payment.

The original open item and the partial payment remain open. The system stores the document
number, fiscal year and number of the line item from the invoice in the partial payment. This
information can be found in the Payment for field.

Thus it is possible to refer to the original open item from the partial payment in SAP. When
posting for the remaining amount of the invoice, both the partial payment and the invoice are
to be manually cleared. However the disadvantage in this system is that the system would
allow payments in excess of the open item and no control is possible in SAP.

Residual item : when a payment is made for less than the actual amount outstanding.
In case of partial payment, all line items will remain as open items. With a residual payment,
the system will clear an invoice with payment and create a new open item for the differential
amount.

60. What is accounts payable?

Ans. When a company purchases goods on credit which needs to be paid back in a short
period of time, it is known as Accounts Payable.

61. Describe purchase cycle?

Ans. Purchasing is the act of buying the goods and services that a company needs to operate
and/or manufacture products. Purchasing procedures are “the series of activities designed to
obtain products of the right quality and quantity at the right price and time and from the right
source.―

62. What is purchase requisition?

Ans. Document generated by a user department or storeroom-personnel to notify the

purchasing department of items it needs to order, their quantity, and the timeframe. It may
also contain the authorization to proceed with the purchase. Also called purchase request or
requisition.

For example, if my office needs office supplies for the sales department, a Purchase
Requisition is created.

63. What is a purchase order?

Ans. Purchase order is a legally binding document between a supplier and a buyer. It
details the items the buyer agrees to purchase quantity at a certain price.

For example, My office wants to buy office supplies from a vendor. In this case, a Purchase
Order is raised and shared with the vendor.

64. What is PO History?

Ans. PO history tab page, the system displays the history of receipts of goods and
invoices relating to the PO. If you double-click on a document number, you can
display the material document or the accounting document.

65. Will the FI documents be created with the purchase order?

Ans. No

66. What happens when you post goods receipt?

Ans. A goods receipt has the following results in the system:

Creation of a Material Document
When you post a goods receipt, the system automatically creates a material
document which serves as proof of the goods movement.
You can display the material document (see Displaying a Material Document ).

Creation of an Accounting Document

Parallel to the material document, the system creates an accounting document. The
accounting document contains the posting lines (for the corresponding accounts)
that are necessary for the movement.
From the screen displaying the material document, you can display the accounting
document .

67. Explain invoice verification?

Ans. invoice verification is done via MIRO transaction.

Logistics invoice verification is the final step in procure to pay cycle. It begins with
the vendor submitting the invoice for the goods sold. The Accounts Payable group,
after receiving the invoice from the vendor, enters it in SAP. Based on the Purchase
Order details, Goods Receipt, invoice data and configuration settings, the system
prompts the user with messages. The user then takes one of the following action:
• Park / Save the invoice
• Post the invoice.

68. How do you deal with tax when u post a goods receipt?

Ans.

69. Explain FI-MM Integration. (purchase to pay cycle)? Briefly.

Ans: SAP system triggers accounts to use for different materials. This is controlled some
parameters like.

1. Chart of Accounts
2. Valuation Grouping Code
3. Transaction/Event Key
4. Account Grouping
5. Valuation Class

Chart of Accounts

The first parameter influencing automatic determination of accounts is the chart of accounts.
SAP determines the chart of accounts based on the plant mentioned in an MM transaction.
Each plant is assigned to a particular company code (transaction OX18) and each company
code uses a particular chart of accounts (transaction OB62). This is how SAP knows which
chart of accounts should be used for account determination.

Valuation Grouping Code

Valuation grouping code enables us to customize account determination according to

different valuation areas. Valuation grouping codes enable us to combine several valuation
areas for the purpose of account determination (transaction OMWD).

Valuation area is nothing but valuation level, where material are valuated. In sap, It is
possible to have valuation level at company code or plant level. Depending on valuation
level, either company codes or plants will be used as valuation areas.

So, valuation areas assigned to the same valuation grouping code will be treated in the same
way during account determination and will correspond to the same G/L account.

Valuation grouping code simplifies maintenance of customizing because you don’t need to
enter the same account determination settings for individual valuation areas. If you would
like to use valuation grouping code, it first must activated in transaction OMWM.
Transaction/Event Key

(Transaction key is a predefined keys given by sap. For we assign gl accounts in OBYC.

This information is enough for 3 years level. Above it give below expl.)

Next parameter is related to MM transaction and details of the goods movement. It is called
transaction/event key and its determination depends on another parameter called posting
value string (sometime it is also called value string or posting string). Posting value string
indicates a posting rule that always contains the same account assignment characteristics for a
certain transaction or event. SAP uses the following criteria to determine posting string for
values:

 Movement type
 Special stock indicator
 Value update
 Quantity update
 Movement indicator
 Consumption posting indicator

You cannot modify or add new posting value strings because they are standard and
maintained by SAP. You can check which posting strings correspond to which movement
types and other criteria in transaction OMWN.
Posting Value Strings in OMWN Transaction

Several transaction/event keys are assigned to each posting value string. You can check table
T156W to see full details of the assignments or you can also get a glimpse of the assignments
in transaction OMWN by double clicking on a relevant line in the table shown above.

Transaction/Event Keys and Value Strings in Table T156W (Use SE16N Transaction to
Browse Tables)
Transaction/event keys are also predefined and you cannot modify them. They are used for
internal processing by SAP.

General valuation Modifier :

There are cases when postings corresponding to the same transaction/event key must be
further divided

EG: During Goods issue, offsetting G/L is determined from transaction key GBB. If business wants to
post to different G/Ls for goods issue for cost centers (Movement type 201) and good issues to orders
(Movement type 261) for the same material and plant, Account modifier can help here. To understand
this better, let us go to t-code OMWN where we define the transaction key and account modification
for the movement type.

Transaction key which we see in OBYC is determined based on the movement type

When material document is posted with these movement types, offsetting account is determined from
transaction key GBB based on account modifier and valuation class.

From below screenshot, you can see that, different offsetting G/L account can be determined for the
same transaction key and valuation class.

By Default, Standard SAP defines account modification keys for below transaction keys.

 GBB (offsetting entry for inventory posting)

 PRD (price differences)

 KON (consignment liabilities)

Modifiers for GBB

For the transaction/event GBB (offsetting entry for inventory posting), the following account groupings have
already been assigned to the relevant movement types:

 AUF: for goods receipts for production orders with account assignment
 BSA: for initial entries of stock balances
 INV: for expense/revenue from inventory differences
 VAX: for goods issues for sales orders without account assignment object
 VAY: for goods issues for sales orders with account assignment object
 VBO: for consumption from stock of material provided to vendor
 VBR: for internal goods issues (e.g., for cost center)
 VKA: for consumption for sales order without SD
 VNG: for scrapping/destruction
 VQP: for sampling
 ZOB: for goods receipts without purchase orders
 ZOF: for goods receipts without production orders
Modifiers for PRD

 PRF: for goods receipts for production orders

 PRA: for goods issues and other goods movements

Modifiers for KON

 if you also activate account grouping for transaction/event KON (consignment liabilities)

- PIP: for pipeline liabilities

Valuation Class
Valuation class is defined for the combination of plant and material (In Accounting 1 view of material
master).

Valuation class allows posting of stock values of

1.     Materials of same material type to different G/L account (Different valuation class is assigned in
different plants for the same material)

2.     Materials of different material type to same G/L account (Same valuation class is assigned to
materials of different material type)

Note: G/L accounts can be defined at valuation class level along with other parameters.

Quick snap of MM-FI Integration process:

When we do material posting for a valuated material, below flow happens.

1. Movement type and other attributes like special stock indicator, movement indicator etc are
determined based on business transaction like goods receipt for PO, production order etc.(OMWN).
This is defined by standard SAP.

2. Transaction key/event and account modifier is identified based on movement type and other
standard attributes in step 1 (OMWN)

3. Valuation grouping code activation is checked from OMWM

4. If active, for the given valuation area, valuation grouping code is identified from OMWD

5. For the identified transaction or event, check if valuation grouping code is active or not in OBYC
(Click the rules button for the transaction key)

6. Valuation class is determined from material master.

7. Based on the above identified attributes, select the G/L account from OBYC.
If system can’t find any account for the found attributes, stock posting can’t be done and system
through clear error stating for which combination of attributes, G/L account is missing. Such errors are
mostly seen during go live/while posting to new materials due to missing G/L account maintenance or
due to incorrect valuation class in material master data.

Now you know the process, here is the short cut to find out G/L.

Account determination details are stored in table T030. If you want to know based on what details
XXX account is determined, simply give that G/L in T030 table in field KONTS. This gives the possible
combination of entries where this G/L is assigned. We can further drill down based on the filtered
entries.

pawan ans: “Every material master record has various views such as basic view,
sales view, accounting view etc. In this Accounting view, there is a field called
Valuation Class. This Valuation class field, together with movement type determines
which GL accts are to be posted. This is the key link for FI-MM integration.

Every material movement in SAP happens w.r.t Movement types. Such as goods
issue, goods receipt or goods scrapped etc. “

Implementation project :

70. What is PRD Account?

71. What is GBB

72. What is gr/ir clearing/

Ans. Postings to the GR/IR clearing account occur in the case of goods and invoice receipts against purchase
orders. You must set the Balances in local currency only indicator for the GR/IR clearing account to enable the
open items to be cleared.

73. What are automatic postings?

Ans. Postings are made to G/L accounts automatically. Example: Stock account, Consumption account,
depreciation entries, foreign valuation difference entries.

74. Explain briefly how the sales and distribution modules creates accounts
receivable line items for invoice postings?

Ans: pawan ans: Fi-sd integration

Every billing document that is generated in sd module will have a corresponding fi

entry generated.

Now, customer master record is picked up from customer master, all we need to
configure is revenue account.
We configure revenue account, as part of account determination through access
sequence.

There are 4-5 combinations of access sequence

a) Customer account assignment group
b) material account assignment group
c) chart of accounts
d) account key
e)

systems looks for this combination of access sequence to determine the revenue
account based on our configuration settings. In this way fi-sd integration happens.

75. Explain batch input sessions? where they are used in fi/co and terms background
and foreground processing
76. What is dunning?
77. What is done maintained in dunning procedure
78. How many dunning levels can be maintained?
79.
80. Explain sales cycle in sap
81. What is payment advice?
82. What is dunning area?
83. What is correspondence and types?
84. What are reason codes?
85. Explain configuration of taxation
86. Explain bills of exchange process
87. What are exchange rate?
88. What do you mean by Net Postings?
89. Explain the Various Reference methods?
90. What is the Document Change Rule?
91. Differentiate between Account Assignment Model, Recurring Entries and Sample
Document?
92. What is a Line Item?
93. Differentiate between the Parking and the Holding of Documents?
94.  What is clearing?
95. Explain Reversal of Documents in SAP?
96. What is Fast Entry?
97. How do You Create GL Account Master Data?
98. What is Collective Processing of GL Accounts?
99. What is Individual Processing of GL Accounts?
100. Is it Possible to Change an Existing B/S GL A/C to the P&L Type?
101.  Why doesn’t the System allow you to Change the Tax Category in a Version?
102.  How do You Perform Annual Closing in SAP?
103.  Explain Managerial Closing?
104. What are the support tickets given in SAP fico module? please give some examples.

Support tickets are basically the problems that arise in day to day usage of SAP.
So any sap fico consultant who is resolving the day to day production issues is actually
supporting the tickets.
105.