Tushar Waghmare’s Post

🌐 What I Learned About Streamlining Accounts Payable with SAP In my experience working in Accounts Payable (AP), one thing that has truly stood out is the power of SAP to transform the way we manage invoices and payments. When I first encountered SAP, I quickly realized it wasn’t just about data entry or transaction recording—it was about optimizing the entire AP workflow. 🔑 Here’s What I’ve Learned: 1. Automation Changes the Game: SAP automates so many routine tasks—from invoice capture to payment approvals. I used to spend hours manually checking invoices, but with SAP, this process became much smoother, and errors dropped significantly. 2. Real-Time Insights:Having access to real-time financial data was a game-changer for me. SAP’s reporting tools allowed me to stay on top of cash flow and make more informed decisions, especially during tight month-end close cycles. 3. Integrated Systems: I saw firsthand how SAP’s integration with procurement and general ledger made it easier to track transactions across the board. No more cross-referencing spreadsheets—the system did the heavy lifting! 4. Vendor Management: SAP made vendor communication seamless. I could easily track invoices, handle disputes, and ensure payments were made on time, which really strengthened our vendor relationships. 5. Compliance and Audit Readiness: SAP’s built-in compliance features also simplified audit preparations, which used to be a headache. It was reassuring to know that all our processes aligned with regulations and industry standards. 📈 My Takeaway: Implementing SAP for Accounts Payable isn’t just about technology—it’s about efficiency, accuracy, and gaining control over the financial workflow. It has made a noticeable impact on the way I manage AP. #AccountsPayable #SAP #FinanceJourney #ERP #Automation #DigitalFinance #APEfficiency

lUnderstanding Downpayments in Accounts Payable (AP) #Finance #Accounts Payable #SAP A downpayment in AP is a partial advance payment made to a supplier before goods or services are delivered. This payment secures the commitment, aids in cash flow management, and ensures resources are available, especially with large projects or international suppliers. *We need RQF form *We need Approval from Higher manager cash pro *we need a proforma invoice for our elase supporting documents Here's an example of how Downpayments work in SAP A company needs customized machinery worth $100,000. The supplier requires a 30% downpayment to begin production, amounting to $30,000. Here's how SAP handles this: Steps for Downpayment Posting: 1. Create Downpayment Request (F-47) This request reserves the amount in the system. Entry: Debit: Downpayment Account - $30,000, Credit: Vendor Account - $30,000 2. Process Downpayment Payment (F-48) After approval, AP makes the payment to the supplier. Entry: Debit: Vendor Account - $30,000, Credit: Bank Account - $30,000 3. Post Vendor Invoice for Balance (MIRO) Once goods are received, the remaining $70,000 is recorded. Entry: Debit: Asset Account - $100,000, Credit: Vendor Account - $100,000 4. Clear Downpayment Against Final Invoice (F-54) This clears the downpayment in the final invoice. Entry: Debit: Vendor Account - $30,000, Credit: Downpayment Account - $30,000 IP User Responsibilities Post-Posting: 1. Reconciliation: Ensure all payments match vendor records. 2. Documentation: Maintain downpayment request, payment, and invoice details. 3. Track Payment Schedule: Monitor remaining project payments and ensure cash flows align. 4. Review Compliance: Verify approvals are in line with company policies. 5. Vendor Balance Review: Ensure accurate downpayment balances for financial reporting. By effectively managing these tasks, the IP user ensures accurate books and proper vendor positioning. #Downpayment #Accounting #Finance #Ap

F110 payment processing in accounts payable F110 is a crucial payment processing transaction in SAP Accounts Payable. Let's break down the process for a beginner: F110 Payment Processing in SAP Accounts Payable: 1. Transaction Code F110: F110 is a standard SAP transaction used for automatic payment processing. It streamlines the payment of open invoices to vendors. 2. Payment Run Parameters: Begin by entering the necessary payment run parameters, such as company code, payment method, and payment date. Specify the payment run type (e.g., manual, automatic) and the identification of the payment run. 3. Selection Criteria: Define the selection criteria for invoices to be included in the payment run. This can include criteria like due date, company code, vendor, and document type. 4. Proposal Run: Execute the proposal run to identify invoices that meet the selection criteria. The system proposes a list of open items eligible for payment based on your criteria. 5. Payment Proposal: Review the payment proposal to ensure accuracy. The proposal includes details like vendor name, invoice amount, and proposed payment date. 6. Edit Payment Proposal: If needed, edit the payment proposal to exclude certain invoices or adjust payment amounts. This step allows for manual intervention before finalizing the payments. 7. Payment Run: Once satisfied with the payment proposal, execute the payment run. The system generates payment documents and updates the accounting records. 8. Payment Medium Workbench (PMW): In F110, the PMW is used to create a payment medium file. This file contains payment details and is often used for electronic fund transfers. 9. Printing of Payment Media: If printing checks or payment advice is required, this step involves generating and printing these documents. 10. Post Processing: Key Considerations: F110 ensures efficiency by automating payment processes, reducing manual efforts. It supports various payment methods, including checks, electronic transfers, and more. Configurations, such as payment methods and house banks, influence F110 functionality. Benefits: F110 enhances accuracy, reduces manual errors, and improves payment process transparency. It aids in meeting payment deadlines and strengthens vendor relationships. In summary, F110 in SAP Accounts Payable is a robust tool for automating the payment process, promoting efficiency, and ensuring accurate and timely payments to vendors. #accountspayable #paymentprocessing #sapfico #invoiceprocessing #p2p #ap #financeandaccounting

Here’s a concise overview of each SAP T-Code related to Accounts Payable, focusing on their purpose and key steps: ### **Invoice Processing:** 1. **FB60: Enter Incoming Invoices**   - **Use:** Record non-PO vendor invoices.   - **Steps:** Enter vendor, amount, dates, attach docs, post. 2. **FB65: Enter Credit Memos**   - **Use:** Record credit memos from vendors.   - **Steps:** Enter vendor, credit type, amount, post. 3. **FB70: Post Invoice**   - **Use:** Post customer-related invoices or internal expenses.   - **Steps:** Input account info, amount, post. 4. **MIRO: Enter Invoice**   - **Use:** Link invoices to purchase orders.   - **Steps:** Enter PO number, verify amounts, post. ### **Payment Proposal:** 5. **F110: Payment Proposal**   - **Use:** Automate payment proposals for multiple vendors.   - **Steps:** Select method, dates, review, execute, confirm. 6. **F111: Payment Proposal for Vendor**   - **Use:** Generate proposals for specific vendors.   - **Steps:** Enter vendor, review amounts, execute, confirm. ### **Reports:** 7. **S_ALR_87009772: Vendor Line Items**   - **Use:** View vendor line item details.   - **Steps:** Set filters, execute. 8. **S_ALR_87009773: Vendor Account Balance**   - **Use:** Check vendor balances.   - **Steps:** Input criteria, execute. 9. **FBL1N: Vendor Line Items**   - **Use:** Detailed list of vendor transactions.   - **Steps:** Enter vendor number, set period, execute. 10. **FBL3N: Vendor Account Balance**   - **Use:** Summarize vendor account balances.   - **Steps:** Input vendor info, execute. 11. **FBL5N: Vendor Open Items**   - **Use:** List all outstanding vendor items.   - **Steps:** Enter vendor number, execute. ### **Additional T-Codes:** 12. **XK02: Vendor Master Data**   - **Use:** Create or update vendor data.   - **Steps:** Enter info, save changes. 13. **XK03: Display Vendor Master Data**   - **Use:** View vendor information.   - **Steps:** Enter vendor number, review. 14. **FBL7N: Payment History**   - **Use:** Historical payment records for vendors.   - **Steps:** Enter vendor info, execute. 15. **FBL9N: Vendor Account Statement**   - **Use:** Summary of vendor activity.   - **Steps:** Enter vendor details, execute.

Running reports in SAP can be complicated, especially for AP teams. In this article, we examine SAP AP reports and explore why third-party integrations can be a better alternative for accounts payable automation and reporting.

📚 Let's look at the accounting entries used in the Procure-to-Pay (P2P) process and how they're documented at each stage. 📊 1️⃣ Purchase Requisition (PR) 📝: A request made by departments stating a need for specific goods or services. ✖ No accounting entries are made at this time. 2️⃣ Purchase Order (PO) 🛒: A purchase order is an agreement to purchase products or services from a supplier. ✖Usually, no accounting entries are created at this stage. 3️⃣ Goods Receipt (GR) 📦: When goods are received, a goods receipt is created in the system to record the receipt of goods or services. ✔ Accounting Entry: Debit Inventory account Credit Goods Receipt/Invoice Receipt (GRIR) Clearing account 4️⃣ Invoice Receipt (IR) 🧾: When the vendor invoice is received, it is entered into the system. ✔ Accounting Entry: Debit Goods Receipt/Invoice Receipt (GRIR) Clearing account Credit Vendor account 5️⃣ Payment 💸: When an invoice is due, payment is processed. ✔ Accounting Entry: Debit Vendor account Credit Bank account These are the basic accounting entries involved in the SAP Procure-to-Pay process. 💬Please let me know if I missed anything 👍🔄 Give this post a thumbs up & repost #AP #P2P #Accountspayable #Entries #Accounting #SAP #GR #PO

📈 Understanding the Procurement -to-Pay (P2P) Accounting entries 🛒 Just came across this insightful post on P2P Accounting entries ! Take a look to enhance your procurement documentation and ensure efficient, cost-effective , accurate sourcing. 🏷️ through the article is specifically for Financial professional working on SAP, same is also very crucial for any retailer whose responsibility includes working as or with people in buying, Replenishment, Supply chain, finance or related profiles. #Procurement #SupplyChain #BusinessEfficiency #StrategicSourcing

Procure-to-pay (P2P) Accounting Entries 1. Purchase Requisition (PR): - No accounting entries are made at this stage. It's a request generated by departments indicating their need for certain goods or services. 2. Purchase Order (PO): - When a purchase order is created, it's a commitment to buy goods or services from a vendor. No accounting entries are made at this point. 3. Goods Receipt (GR): When goods are received, a goods receipt is created in the system to record the receipt of goods or services. Accounting entry: - Debit Inventory or Expense account Credit Goods Receipt/Invoice receipt account (Clearing account) 4. Invoice Receipt (IR): When the vendor invoice is received, it is entered into the system. -✓ Accounting entry: Debit Goods Receipt/Invoice receipt account (Clearing account) Credit Vendor 5. Payment: - When the invoice is due for payment, a payment is processed. ✓ Accounting entry: - Debit Vendor Credit Bank These are the basic accounting entries involved in the SAP Procure-to-Pay process. #P2P #PTPentries #accounting #purchaseorder #financeandaccounting #F&A

Main step for Account Payable configuration #SAPS4HANA #SAPFI

Running reports in SAP can be complicated, especially for AP teams. In this article, we examine SAP AP reports and explore why third-party integrations can be a better alternative for accounts payable automation and reporting.