Maximizing SAP ERP Financials Accounts Receivable

Manish Patel is a senior SAP professional with close to 20 years of experience in the IT industry. After graduating from Bombay University, Manish worked at an Indian software company on various financials projects in Asia Pacific. During his tenure at this company, he gained experience as a finance lead responsible for implementing the company's indigenously developed ERP system. After forming his solid foundation at this company in the various areas of software development and project management, he started his career as an SAP consultant. Over last 15 years, he has worked on variety of SAP projects in number of different industries. He has also conducted several successful SAP trainings at various training locations of SAP America. This breadth of assignments honed his abilities to successfully perform different roles in an SAP project ranging from system configuration to project management. He is also the author of a best selling book SAP Account Determination published by SAP Press, targeted at the technical and consulting SAP community. The book explores vital design elements that carry out automatic determination of GL accounts from business transactions in various SAP components. Manish enjoys working through the challenges and complexities that are inherent in implementation of such an enterprise wide system. He understands that experiences and aftereffects of such implementations can range from justifiably thrilling to maddeningly frustrating. Hence, he thrives in contributing to ease transition of SAP users into the new, integrated world of SAP.

Preface 19
Customer Master Data 25
1.1 Organization of Customer Master Data 25
1.2 General Data View 29
1.2.1 Address 30
1.2.2 Control Data 33
1.2.3 Payment Transactions 36
1.2.4 Marketing 38
1.2.5 Unloading Points 39
1.2.6 Export Data 39
1.2.7 Contact Person 40
1.3 Company Code Data View 41
1.3.1 Account Management 42
1.3.2 Payment Transactions 45
1.3.3 Correspondence 48
1.3.4 Insurance 51
1.4 Sales Data View 52
1.4.1 Sales 52
1.4.2 Shipping 55
1.4.3 Billing Documents 57
1.4.4 Partner Functions 60
1.5 Transactions 61
1.5.1 Master Data Maintenance 61
1.5.2 Change Management 62
1.5.3 Customer Block and Deletion Indicators 63
1.5.4 Reports 65
1.6 Configuration Activities 65
1.6.1 Customer Account Groups 65
1.6.2 Customer Number Range 67
1.6.3 Customer Master Texts 67
1.6.4 Customer Message Control 68
1.7 Technical Reference 69
1.7.1 SAP Notes 69
1.7.2 Authorization Objects 70
1.7.3 Tables and Structures 71
1.8 Enhancements and Modifications 72
1.8.1 Enhancements 72
1.8.2 Business Add-Ins (BAdIs) 72
1.8.3 BAPIs 73
1.9 Summary 74
2 Accounts Receivable Transactions 75
2.1 Basic Concepts 75
2.1.1 Ledger 76
2.1.2 Document Type 76
2.1.3 Document Number 78
2.1.4 Document Dates 79
2.1.5 Posting Period 80
2.1.6 Posting Key 81
2.2 AR Transactions General Interface 83
2.2.1 Initial Screen 83
2.2.2 Subsequent Screens 85
2.2.3 Field Status Group 86
2.3 AR Transactions Enjoy Interface 87
2.3.1 Document Header 88
2.3.2 Document Line Items 89
2.3.3 Layout Management 91
2.4 Other AR Transactions 92
2.4.1 Maintain Payment Terms 92
2.4.2 Document Change, Display 95
2.4.3 Document Reversal 96
2.4.4 Post with Reference 97
2.4.5 Customer Line Items (FBL5N) 98
2.5 Document-Processing Aids 99
2.5.1 Validation/Substitutions 99
2.5.2 Document Parking 101
2.5.3 Account Assignment Models 102
2.5.4 Recurring Entries 104
2.5.5 List of Transactions 106
2.6 Technical Reference 107
2.6.1 SAP Notes 107
2.6.2 Authorization Objects 108
2.6.3 Tables and Structures 109
2.7 Enhancements and Modifications 110
2.7.1 Business Transaction Events (BTE) 110
2.7.2 Business Add-Ins (BAdIs) 111
2.7.3 BAPIs 112
2.8 Summary 113
3 Customer Billing 115
3.1 Master Data and Pricing Procedures 116
3.1.1 Organizational Structure 116
3.1.2 Master Data 118
3.1.3 Pricing Procedures 122
3.2 Billing Types 124
3.2.1 Billing Type Configuration 124
3.2.2 Billing Type Determination 130
3.2.3 Billing Type Relevance 131
3.3 Other Configuration 133
3.3.1 GL Account Determination 134
3.3.2 Cost Center Assignment 137
3.3.3 Dunning Area Assignment 138
3.3.4 Output Determination 140
3.4 Billing Transactions 141
3.4.1 Processing Billing Documents 142
3.4.2 Cancellation of Billing Documents 147
3.4.3 Blocked Billing Documents 148
3.4.4 Document Flow 151
3.4.5 Transaction List 153
3.5 Technical Reference 154
3.5.1 SAP Notes 154
3.5.2 Authorization Objects 155
3.5.3 Tables and Structures 156
3.6 Enhancements and Modifications 156
3.6.1 Business Transaction Events (BTE) 157
3.6.2 Enhancements 157
3.6.3 Business Add-Ins (BAdIs) 158
3.6.4 BAPIs 159
3.7 Summary 160
4 Additional Billing Functionality 161
4.1 Down Payments 161
4.1.1 AR Down Payments 162
4.1.2 SD Down Payments 165
4.2 Billing Plans 166
4.2.1 Periodic Billing Plan 167
4.2.2 Milestone Billing Plan 171
4.2.3 Using Billing Plans 174
4.3 Resource-Related Billing 177
4.3.1 DIP Profile Configuration 178
4.3.2 Using Resource-Related Billing 183
4.4 Retroactive Billing 186
4.4.1 Retro Billing Process 186
4.4.2 Primary and Secondary Documents 188
4.5 Other Scenarios 190
4.5.1 POD Process 190
4.5.2 Intercompany Billing 192
4.5.3 Pro Forma Invoices 193
4.5.4 Billing Third-Party Orders 194
4.5.5 Consignment Billing 195
4.5.6 Cash on Delivery Process 197
4.5.7 Free-of-Charge Items 198
4.5.8 List of Transactions 199
4.6 Technical Reference 200
4.6.1 SAP Notes 200
4.6.2 Authorization Objects 201
4.6.3 Tables and Structures 202
4.7 Enhancements and Modifications 203
4.7.1 Enhancements 203
4.7.2 Business Add-Ins (BAdIs) 204
4.8 Summary 205
5 Incoming Payments 207
5.1 Entering Basic Information 208
5.1.1 Document Header Data 208
5.1.2 Bank Data 209
5.2 Selecting Open Items 210
5.2.1 Automatic Selection 211
5.2.2 Selecting Multiple Accounts 212
5.2.3 Additional Selections 213
5.2.4 Selection Based on a Payment Advice 214
5.3 Processing Open items 214
5.3.1 Selection Controls 215
5.3.2 Discount Processing 217
5.3.3 Partial Payments 218
5.3.4 Residual Items 219
5.4 Payment Differences 220
5.4.1 Post to a Customer Account 221
5.4.2 Post to a GL Account 222
5.4.3 Underpayment/Overpayment 223
5.5 Using Reason Codes 224
5.5.1 Definition of Reason Codes 224
5.5.2 Using Reason Codes 226
5.6 Simulate and Post 227
5.7 Additional Transactions 229
5.7.1 Incoming Payment Fast Entry 229
5.7.2 Payment Advice Processing 230
5.7.3 Transfer with Clearing 232
5.7.4 Reporting 233
5.7.5 List of Transactions 234
5.8 Technical Reference 234
5.8.1 SAP Notes 234
5.8.2 Authorization Objects 235
5.8.3 Tables and Structures 236
5.9 Enhancements and Modifications 237
5.9.1 Business Transaction Events (BTEs) 237
5.9.2 Business Add-Ins (BAdIs) 237
5.9.3 Enhancements 238
5.10 Summary 238
6 Dunning 239
6.1 Dunning Parameters 239
6.1.1 Dunning Area 240
6.1.2 Dunning Level 240
6.1.3 Dunning Grouping Key 241
6.1.4 Dunning Clerk 242
6.1.5 Dunning Key 243
6.1.6 Dunning Block 243
6.2 Dunning Procedure 244
6.2.1 Overview Screen 245
6.2.2 Dunning Levels 246
6.2.3 Minimum Amounts 248
6.2.4 Dunning Charges 249
6.2.5 Special GL Indicators 250
6.2.6 Dunning Texts 251
6.2.7 Dunning Notice 252
6.3 Dunning Run 253
6.3.1 Parameter Maintenance 253
6.3.2 Creating a Dunning Proposal 255
6.3.3 Changing a Dunning Proposal 256
6.3.4 Print Dunning Notices 257
6.4 Transactions 258
6.4.1 Dunning Data in Customer Master (FD02) 258
6.4.2 Legal Dunning 260
6.4.3 Individual Dunning Notices 261
6.4.4 Interest Calculation 262
6.4.5 Reporting 262
6.4.6 List of Transactions 264
6.5 Technical Reference 264
6.5.1 SAP Notes 264
6.5.2 Authorization Objects 265
6.5.3 Tables and Structures 266
6.6 Enhancements and Modifications 267
6.6.1 Business Transaction Events (BTE) 267
6.6.2 Enhancements 269
6.7 Summary 269
7 Credit Management 271
7.1 Credit Management Setup 271
7.1.1 Credit Control Area 272
7.1.2 Organization of Credit Data 274
7.1.3 Maintenance of Credit Limits 276
7.1.4 Other Credit Management Data 278
7.1.5 Credit Account 282
7.2 Simple Credit Check 283
7.3 Advanced Credit Management 284
7.3.1 Types of Credit Checks 285
7.3.2 Document Control 287
7.3.3 Credit Tolerances 287
7.3.4 Seasonal Factors 288
7.4 Processing Credit Blocks 288
7.4.1 Types of Information Available 289
7.4.2 Credit Blocks Display 289
7.4.3 Subsequent Actions 292
7.4.4 ABC Analysis 292
7.5 Transactions 293
7.5.1 Texts for Credit Management Texts (V.32) 294
7.5.2 Rebuild Credit Management Data (F.28) 294
7.5.3 Reorganization of Credit Management Data 295
7.5.4 A/R Summary 296
7.5.5 Posting Without Credit Check (AKOF) 296
7.5.6 Reporting 297
7.5.7 List of Transactions 298
7.6 Technical Reference 299
7.6.1 SAP Notes 299
7.6.2 Authorization Objects 300
7.6.3 Tables and Structures 301
7.7 Enhancements and Modifications 301
7.7.1 Business Transaction Events (BTE) 301
7.7.2 Enhancements 303
7.8 Summary 303
8 Tax Processing 305
8.1 Concepts and Configuration 306
8.1.1 Tax Procedure 306
8.1.2 Account Keys 308
8.1.3 Tax Codes 309
8.1.4 Tax Relevancy of Master Data 311
8.2 Tax Calculations 313
8.2.1 Tax Calculations in FI Documents 313
8.2.2 Tax Calculation in Sales Documents 315
8.2.3 Tax Exemptions 316
8.3 Tax Reporting 318
8.3.1 Line Item Reports 318
8.3.2 Tax Reports 319
8.3.3 Tax Returns 319
8.4 External Tax Software 321
8.4.1 Configuration 321
8.4.2 Processing 322
8.4.3 Reporting 323
8.5 Other Functionalities 324
8.5.1 GL Tax Accounts 324
8.5.2 Plants Abroad 325
8.5.3 List of Transactions 326
8.6 Technical Reference 327
8.6.1 SAP Notes 328
8.6.2 Authorization Objects 329
8.6.3 Tables and Structures 329
8.7 Enhancements and Modifications 330
8.7.1 Business Transaction Events (BTE) 330
8.7.2 Enhancements 331
8.7.3 Business Add-Ins (BAdIs) 332
8.7.4 BAPI 334
8.8 Summary 334
9 Revenue Recognition 335
9.1 Standard Revenue Recognition 336
9.1.1 Account Assignment Groups 336
9.1.2 GL Account Determination 337
9.2 Revenue Recognition Parameters 339
9.2.1 SD Item Categories 339
9.2.2 Revenue Recognition 341
9.2.3 Accrual Period Start 341
9.2.4 Revenue Distribution 342
9.2.5 Revenue Event 342
9.3 Time-Related Revenue Recognition 343
9.3.1 Time-Related Revenue Recognition Without a Billing Plan 344
9.3.2 Time-Related Revenue Recognition with a Periodic Billing Plan 344
9.3.3 Time-Related Revenue Recognition with a Milestone Billing Plan 345
9.4 Service-Related Revenue Recognition 346
9.4.1 Service-Related Revenue Recognition by Incoming Invoice 346
9.4.2 Service-Related Revenue Recognition by Proof of Delivery 347
9.4.3 Service-Related Revenue Recognition by Customer Acceptance Date 348
9.4.4 Service-Related Revenue Recognition by Customer-Specific Event 348
9.5 Transactions 349
9.5.1 Timing of Revenue Recognition 350
9.5.2 Processing Revenue List (VF44) 351
9.5.3 Revenue Cancellations (VF46) 354
9.5.4 Reporting and Monitoring 356
9.5.5 Adjustments and Corrections 357
9.5.6 List of Transactions 360
9.5.7 Implementation Considerations 361
9.6 Technical Reference 361
9.6.1 SAP Notes 361
9.6.2 Authorizations 363
9.6.3 Tables and Structures 363
9.7 Enhancements and Modifications 364
9.7.1 Business Transaction Events (BTE) 364
9.7.2 Business Add-Ins (BAdIs) 366
9.8 Summary 367
10 Periodic Processing 369
10.1 Month-End Processing 369
10.1.1 Outgoing Payments 370
10.1.2 Automatic Clearing 372
10.1.3 Accrual Processing 377
10.1.4 Foreign Currency Revaluation 383
10.1.5 Open/Close Posting Periods 386
10.2 Interest Calculation 387
10.2.1 Interest Indicators 388
10.2.2 Interest Terms 390
10.2.3 Posting and Printing 392
10.2.4 Interest Processing 393
10.3 Correspondence 395
10.3.1 Correspondence Types 395
10.3.2 Requesting Correspondence Types 397
10.3.3 Customer Statements 400
10.4 Year-End Processing 401
10.4.1 Balance Confirmation 402
10.4.2 Balance Carry Forward 405
10.5 Technical Reference 407
10.5.1 List of Transactions 407
10.5.2 SAP Notes 408
10.5.3 Authorizations 409
10.5.4 Tables and Structures 410
10.6 Enhancements and Modifications 411
10.6.1 Business Transaction Events (BTE) 411
10.6.2 Enhancements 412
10.6.3 Business Add-Ins (BAdIs) 412
10.7 Summary 413
11 Accounts Receivable Reporting 415
11.1 Line Item Display 415
11.1.1 Selection Variants 418
11.1.2 Layout Management 420
11.2 Standard Reports 422
11.2.1 Standard AR Reports 423
11.2.2 Customer Master List 425
11.2.3 AR Aging Report 426
11.2.4 Standard SD Reports 429
11.3 Drill-Down Reports 431
11.3.1 Form Definition 432
11.3.2 Report Definition 433
11.4 AR Evaluations 434
11.5 SAP Queries 437
11.5.1 User Groups 437
11.5.2 InfoSets 438
11.5.3 Queries 440
11.6 Technical Reference 442
11.6.1 SAP Notes 442
11.6.2 Authorizations 443
11.6.3 Tables and Structures 444
11.7 Enhancements and Modifications 445
11.7.1 Business Transaction Events (BTE) 445
11.7.2 Enhancements 446
11.8 Summary 446
12 Financial Supply Chain Management Overview 447
12.1 Credit Management 448
12.1.1 Organizational Structure 448
12.1.2 Credit Scoring 449
12.1.3 Credit Exposure Check 450
12.1.4 Comparison of functionality 452
12.2 Dispute Management 454
12.2.1 Dispute Case and Role Assignment 454
12.2.2 Processing a Dispute Case 456
12.2.3 Integration of Dispute Management 458
12.3 Collections Management 459
12.3.1 Collection Strategies 459
12.3.2 Collections Work Lists 461
12.3.3 Collections Activities 462
12.3.4 Collections Management Integration 463
12.4 Conclusion 464
Appendices 467
A Technical Overview 469
A.1 Enhancements 469
A.2 Business Transaction Event (BTE) 474
A.3 Business Add-Ins (BAdIs) 479
A.4 Business APIs (BAPIs) 483
B SAP Authorizations 487
B.1 Authorization Objects 488
B.2 Profile Generator 491
B.3 Authorization Roles 495
B.4 List of Transactions 497
The Author 499
Index 501