Accounts Payable Process in SAP: Step by Step Guide

Do you find it complex and time-consuming to explore managing accounts payable? Try SAP Accounts Payable to chase away your problems. In this blog post, we will talk about the Accounts Payable Process in SAP and how it can assist you in transforming your business’s financial operations.

The following are ways through which SAP Accounts Payable can:

• Make you have an easy time in processing invoices;
• Help you manage cash flows;
• Enable good vendor relationships;
• Eliminate fraud and mistakes

Let’s explore the benefits and best practices of Accounts Payable Process in SAP here.

The Accounts Payable (AP) process in SAP involves managing and processing the company’s financial obligations to its suppliers. This process ensures timely and accurate payment of invoices, maintains good relationships with vendors, and helps in efficient cash management.

Before we proceed ahead with the process. We will be needing few things

• A Vendor Account
• A General Ledger Account

You can either create a new Vendor Account or use an already created Vendor.

Same goes for the General Ledgers.

Here is a brief overview of the Accounts Payable process in SAP

Creating a Vendor Invoice

To post the vendor invoice we can use the transaction code

FB60

Or

SAP Easy Access → Accounting → Financial Accounting → Accounts Payable → Document Entry → FB60 (Invoice)

In the below screen

You can Fill in the details as given below:

Supplier/Vendor: – The Stationary Spot

Invoice Date: Todays Date

Calculate Tax: <The tax slabs>

Tax Amount: <This will get automatically calculated> V4 V4 (12% Input)
Bus. Place/Sectn: ICA

G/L acct: Purchase – 4000000031

Amount in doc. Curr: The amount – Rs. 1000

Then you click on Calculate tax button and fill the amount from the balance

Click on Simulate

Once you have ensured all the entries.

Click on Save

Now after purchase we need to check and pay the vendor. Here we have considered total amount which is due to be paid.

First, we need to know how much we have to pay to a particular vendor. The screen that displays all the details of a particular vendor is called. “Vendor Line Item Display”

The Tcode to visit Vendor Line Item Display is: FBL1N

This is the first screen of the Vendor Line-Item Display

Enter your Vendor. and choose a proper Line item status.

Here, we have selected “All Items”

Understanding the Three Status Options of Line-Item Displays

In the SAP Vendor Line-Item Display (FBL1N), the three options for line-item status refer to the different types of financial transactions involving a vendor. Here’s a simple explanation of each option:

1. Open Items: The transactions that are still outstanding and have not been settled or paid. For example, if you have received an invoice from a vendor but have not yet made the payment, it will appear as an open item.
2. Cleared Items: The transactions that have been settled. For instance, once you make a payment against an invoice, that invoice will move from open items to cleared items.
3. All Items: This displays both open and cleared items. You can see the complete history of transactions with the vendor, including both outstanding and settled transactions.

This helps in tracking what you owe, what you’ve paid, and getting an overall picture of your transactions with a vendor.

Here we can see in the above screen that the total amount due and total amount paid to this vendor is same. which is ₹3,16,212 Which means there’s no payments outstanding.

So we cannot proceed ahead with this Vendor for our Accounts Payable Process.

How to Select Another Vendor

Press Execute

Here if you see the outstanding balance is ₹ 7,00,000.

In order to process this payment, we need to open F-53

F-53

Enter Outgoing Payments

Fill in all the necessary details as shown below

Press Enter

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Press on the ‘Documents Overview’ button or press ‘Shift + F2’

You can directly press on the save button or double click on the amount to check further details.

Press on Save

Document 1500001114 was posted in company code ICAX

Now we will check our Vendor Line Item Display. To check if the balances are cleared of still outstanding

FBL1N

Execute

All the amounts cleared.

Nothing is due.

In conclusion, the Accounts Payable process in SAP enhances organizational financial operations through automation, improved accuracy, compliance, and real-time monitoring. It reduces manual work, streamlines workflows, and ensures timely payments, leading to cost savings and better vendor relationships.

• Author
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Sanjiv Kumar Giri

Qualification: CA Finalist, B.Com (Hons), AMFI
Profession: Tax Consultant & Financial Planner
Organization: Master Trainer (CA) at “ICA Edu Skills Pvt. Ltd".
Founder: GiRi's Classes & GiRi's Financial Solutions
Author of Book: “10+2 Accountancy”

Mr. Sanjiv Kumar Giri is having more than 15 years of experience in the field of Direct Taxes, GST, and Accounts & Finance.

Linkedin Profile: https://in.linkedin.com/in/sanjiv-giri-02a99292

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