FICO

Accounts Payable and

Receivable Processes in
S/4HANA

Hemantha Jakka
FICO-Consultant
 "Streamlining Accounts Payable and
Receivable Processes in S/4HANA"
In today's rapidly evolving business landscape, optimizing financial processes is crucial for
maintaining agility and competitiveness. With SAP S/4HANA Finance, organizations can
achieve significant efficiencies in their Accounts Payable (AP) and Accounts Receivable (AR)
operations.

❖ Accounts Payable: (Vendor)

• Real-time processing: With SAP S/4HANA's in-memory computing capabilities, AP
teams can process invoices in real-time, reducing cycle times and enhancing vendor
relationships.
• Automation: Leveraging intelligent automation and machine learning, repetitive tasks
such as invoice matching and approval workflows can be automated, freeing up valuable
time for strategic activities.
• Enhanced visibility: S/4HANA provides end-to-end visibility into AP processes,
enabling proactive management of cash flow, accruals, and payment terms.

In ECC--- Vendor Material, I will Create Directly IN S/4HANA---- We need to create BP (Business Partner)
Vendor master Vendor or Supplier
Vendor groups with Screen layout
Number Link with Vendor group BP Vendor or supplier

1.BP groups with Screen layout 1.Vendor groups with Screen layout
2. Create number ranges 2. Create number ranges
3. Number link with BP Group 3. Number Link with Vendor group

Link with BP vs Vendor Group

Steps for creating a new BP grouping

1.Create a BP grouping ---- T-code-BUCF

Path: - Cross application components--SAP Business partner ---Basic settings--Number range &
groupings--define number ranges

2.Define number ranges for BP

3.Assign the number ranges

Prepared By
J. Hemantha Sesha sai
4.Create vendor account groups
Path: -SPRO--IMG--Financial Accounting--Accounts receivable and Accounts payable --Supplier
accounts--master data--Preparations for creating supplier master data--define Account groups with screen
layout(vendors)

5.Create number ranges for Vendor account groups

6.Assign number ranges to vendor account groups

7.Assign vendor account groups to BP groupings -----T code - V_ TBC001

Path: - Cross-Application Components -Master Data Synchronization- -Customer/Vendor
Integration-Business Partner Settings—setting for vendor integration-field Assignment
For Vendor Integration—Assign keys---Define Number Assignment for Direction BP to Vendor

8.Create Business partner---- T code –BP

After creating BP, we need to create GL Accounts like 1. Tolerance Difference---OBXU
2. Discount received----OBXL
3. Bank charges----OBXK
And Assing their Particular Accounts

❖ Create Payment Terms---OBB8

1. Immediate
2. 30 Days Due
3. 45Days Due
4. 60 Days Due
5. Over all Due-30 with Discount Options
10 Days ---5%
20 Days ---2% (11th Day to 20th)
21 to 30 Days---No Discount
6. Fixed – 15+1 Additional Month Next Month 15th
Entire month Transaction
01.10.2023 15.11.2023
10.10.2023 15.11.2023
25.10.2023 15.11.2023
01.11.2023 15.11.2023
12.12.2023 15.11.2023

7. Fixed—31+1 Additional Month Next Month End Due Date

Entire Month transaction
01.10.2023 30.11.2023
10.10.2023 30.11.2023
25.10.2023 30.11.2023
01.11.2023 30.11.2023
12.12.2023 30.11.2023

Prepared By
J. Hemantha Sesha sai
 8. Day Limit Max—31
It split as two conditions
1st to 15th between Transaction due date – Month End
16th to 31st between Transaction due date next month 15th
01.10.2023 31.10.2023
10.10.2023 31.10.2023
17.10.2023 15.11.2023
29.10.2023 15.11.2023

9. Instalment Payment Terms

01.01.2023 Invoice date – 100000
30%Payment in 30 days-due-31.01.2023
30%payment in 60 days-due-02.03.2023
40% Payment in 90 days-due-01.04.2023

Instalment ----OBB8
Assignment of Installation -----OBB9

10. Instalment Payment

30% Payment in 30 Days 30 Days due
30% Payment in 60 days 60 Days due
40% Payment in 90 days 90 Days due

❖ House Bank – FIORI

House Bank is Mandatory to make an invoice for Vendor & Customer

Bank Key (IFSC)

Account ID (Bank Account) There 3 info together we call as House Bank
GL Account

1. Each branch wise we need to create One House Bank

2. Bank Key is different from branch – Either same bank or different bank
3. Each House Bank – Can have Multiple account (Acct Id)
4. Each Bank account number is Nothing but Acct ID
5. For all House Bank s we can use 3 GL accounts

GL Accounts for House Bank

1. Main Bank acct ---- House Bank
2. Outgoing Acct ---- Sub Acct or Clearing Acct or BRS Clearing
3. Incoming acct ----- Sub Acct or Clearing Acct or BRS Clearing

Why we are using 3 GL accts House Bank:

1. Vendor Invoice
Expense A/C ----- Dr 10000
Vendor A/C ------Cr 10000

Prepared By
J. Hemantha Sesha sai
 2. Payment to Vendor
Vendor A/C------Dr 10000
Outgoing a/c ----Cr 10000

3. Bank Statement received

Outgoing a/c ----Dr 10000
Main Bank a/c ----Cr 10000

ECC S4HANA House Bank Creation Fiori App

GUI Bank Key: T code: FI01 Option 1 Option 2:
GUI House Bank name: FI12 GUI Bank Key: T code: FI01 Complete House Bank Setup
Acct ID, Bank acct & GL GUI House Bank name: FI12 Bank Key
Fiori Acct Id, Bank acct & GL House Bank name
Acct ID, Bank acct & GL

❖ Posting

1. Business Partner BP (Vendor or Supplier)

2. Vendor Invoice FB60
3. Payment against Vendor F-53
4. Invoice FB60
5. Change Invoice Fb02

1. Payment we can modify at any point time

• Vendor master
• White Posting Invoice
• After posting Invoice
2. In PB (Vendor) we can have Two payment terms in one vendor – company
code segment & Purchase Org.seg
3. Comp.code Segment Payment terms It derived to FI invoice FB60
4. Purchase Org.segment Payment terms It derived to FI-MM Invoice - MIRO

Prepared By
J. Hemantha Sesha sai
 ❖ Accounts Receivable: (Customer)

• Accelerated cash collection: S/4HANA's streamlined AR processes enable faster invoice

issuance, automated reminders, and seamless reconciliation, leading to improved cash flow
and working capital management.
• Customer insights: By integrating customer data from various sources, S/4HANA empowers
AR teams with actionable insights for personalized collections strategies and credit risk
management.
• Efficient dispute resolution: Advanced analytics capabilities in S/4HANA enable proactive
identification of billing discrepancies and disputes, facilitating timely resolution and
minimizing revenue leakage.

BP (Customer Partner) Customer

BP (Business Partner) Creating BP Automatically Customer

1. BP Groups
2. Number Ranges BP
3. BP Group Vs Number Ranges
4. Customer Group ---- OBD2
5. Number Ranges of Customer
6. Customer Group Vs Number Ranges
7. BP Vs Customer Need to give relation
8. Tolarance Group Already Created (Vendor & customer)
9. Reconciliation Accounts
10. FCV – Basic Set up ---- OBA1
11. Additional GL account

❖ Posting

1. Customer Invoice FB70

2. Incoming Payment F-28
3. Credit memo FB75
4. Report FBL5N

Prepared By
J. Hemantha Sesha sai
 ❖ Down payment:
Downpayment is nothing but Advance Payment

Special GL Transactions Special GL Keys

Downpayment – (Current Asset) A

Downpayment – (fixed Asset)
Downpayment – Request F

❖ Payment
Downpayment F-29
Invoice F-70
Special to Normal F-39
Clear F-32

❖ Key Benefits:

• Cost savings: By eliminating manual tasks and reducing error rates,

organizations can achieve significant cost savings in AP and AR operations.
• Improved compliance: S/4HANA's robust controls and audit trails ensure
compliance with regulatory requirements and internal policies.
• Enhanced stakeholder experience: With faster processing times and improved
accuracy, both vendors and customers experience higher satisfaction levels,
driving stronger relationships and loyalty.

Conclusion:
Embracing SAP S/4HANA Finance for Accounts Payable and Receivable processes isn't just about
efficiency—it's about transforming financial operations to become more agile, strategic, and
customer-centric. Let's unlock the full potential of S/4HANA together!

Prepared By
J. Hemantha Sesha sai