Accounts Payable & APP(Accounts

Payment Program)
By
VenkateshBabu SreeRama
9030221020
 Accounts Payable Definition
• It is the process where the organization pay to there vendors,
For which they have received goods or services from vendors
and it is also called as P2P(Procure 2 Pay).

• Generally the accounts payable is presented under current

liabilities in the balance sheet and it is represented as
negative cash flow for the organization. Accounts payable are
often referred to as payables.

• As said above accounts payable is under current liabilities in

balance sheet, So the validity for such liability to be fulfilled
less than year.
General Process of Accounts Payable

Vendor
Purchase Request
Purchase order
Goods & Invoice Receipt
Invoice Verification
Payment(Accounts Payable)
Terms Used In AP(Accounts Payable)

1.Vendor
2.Discount
3.Advance
4.Bank(Check deposit or
Check issue) etc.
 Accounts Payable Process In SAP(FI)
• SAP Stands for Systems and Products in Data
processing

• Main object of this presentation is to explain

the process of Accounts Payable through ERP
SAP(FI)
Steps Involved in Accounts Payable process –
SAP FI & T.CODES
1.Creation of vendor accounts groups – OBD3
in this step we create vendor groups like One time vendor, External
Vendor & Internal Vendor

2.Creation of account number ranges for the vendors – XKN1

Example :
20 200000 200100
21 200101 200200
22 200201 200300
*deselect External/Internal option in the screen

3. Assign Vendor number ranges to vendor account groups - OBAS

Example :
Vendor Account Group Number range
One time vendor AML1 20
Internal vendor AML2 21
External Vendor AML3 22
4. Creation of Sundry Creditors & Material Purchase Gl
A/C’s (FS00)
• 1.Creation of Sundry creditors GL from liabilities group and it is
Reconciliation Account(Vendors Recon Type A/C).

• Definition of Reconciliation Account : In simplest way, recon acct can be

defines as it is a link between sub ledger and G/L and direct posting
cannot be done to recon acct.

• 2.Creation of Material purchase GL A/C, It is normal general ledger and it

is used to post material transactions and it is created from current assets
or assets account group.
 5. Vendor Master Data - XK01
In this step we need to create vendor mater data for
the vendor account groups and assign the sundry
creditors account to vendors.

Example : AML3 – External Vendor Group, AML2 –

Internal Vendor Group & AML1 – Onetime Vendor
Group

6. Define the Document types & Number Ranges –

OBA7 or FBN12
After creation of vendor master data, We need to
define document types and it’s number ranges,
Generally vendor document types are follows
KR – Vendor Invoice – 19
KZ – Vendor Payment – 15
KA – Vendor Document - 17
 Postings
Before posting, need to know the posting keys of
vendor
31 – Debit
25 – Credit
To view Vendor line Item – FBL1N
Posting can be as follows :
1.Normal posting – F - 43 or Fb60
2.Advance posting – F - 48
3.Discount & Installment & Tax Posting – F– 43
4.Outgoing Payment - F – 53 &
5.5. APP(Automatic Payment Program) – FBZP,
To run APP – F110
1.Normal Posting – F - 43
Entry :
40 Dr Material Purchase A/c xxxx
31 CR To Vendor A/c xxxx
Normal Clearing - F – 53
25Dr Vendor A/c xxxx
50 Cr To Cash A/c xxxx
 2. Advance Posting
Before posting advance, Create a Advance GL
from asset account group and select recon a/c
type vendor.

After creating advance GL, Link sundry debtor to

advance from vendor – OBYR.

Type T – code OBYR in search and double click

on K – A(Down Payment) and enter chart of
accounts : xxxx, There enter sundry ledger GL&
advance GL and save.
 A) Advance Posting – F – 48

Select special indicator A(Advance), After entering

vendor number in the screen.

Entry : 29 A Dr Vendor A/c

Cr Cash A/c

Check vendor line item – FBL1N, enter vendor

number and select normal items
message : No open items to display and
deselect normal items and select special G/L
transactions, There we can find Advance
posting.
Next post a normal invoice(F – 43) with the same amount, for
which we have given advance to the vendor

40 Dr Material purchase A/c

31 Cr To Vendor A/c

Now go to vendor line(FBL1N) item select normal item, There

you will find normal item as open along with special
transactions(Advance) open.
Transfer Advance SPL GL item to Normal GL item for clearing
– F – 54

Dr 26 Vendor A/C xxxx

CR 39A Vendor A/C xxxx

Later check vendor line item, there will be no open item in

special transactions and both spl and normal item will be
updated in normal open item.
 Final step in advance
posting, go to clear
vendor F – 44 and enter
vendor number and just
save and there will be no
items to display, It is
only clearing enter.
B)Installment Posting – F - 43
Use previous created installment payment term T
– code : OBB8 and at the time of posting in the
above T – code, change the payment term
from{0001(Payable Immediately due net) to
AMLI(payment created in OBB8)}.
Entry :
40 Dr Material posting A/c
31 Cr vendor A/c
31 Cr Vendor A/c
31 Cr Vendor A/c
31 Cr Vendor A/c
31 Cr Vendor A/c
C) Tax Posting(Input Tax) – F - 43
Before tax posting create a Input tax normal GL
from expences account group(FS00) and Tax term
in (OBYZ or OBQ3) and assign tax procedure to
country(OBBG), Create tax code in (FTXP).
Go to OB40, Double click on VST(Transaction Key)
and there we need to assign our input tax GL for
automatic posting and save.
Entry :
40 Dr Material Purchase A/c
40 Dr Input Tax A/c
31 Cr Vendor A/c
D) Discount Posting – F - 43
Create discount received normal GL(FS00) and go to
OBXU assign cash discount received GL for automatic
posting.

Post invoice(F-43) and change the payment term

from{0001(Payable immediately due net) to discount
term created in OBB8(AML4, AML5, AML6,AML7 &
AML8)} and the discount will be updated depending
upon the posting date as posting date has been
selected under baseline date at the time of creating
discount term and discount will be reflected at the
time of payment made.
 Entry :
F-43 :
40 Dr Material Purchase A/c xxx
31 Cr Vendor A/c xxx

F – 53(out going payment with discount)

25 Dr Vendor A/c
50 Cr Discount Received A/c
50 Cr Cash A/c
APP(Automatic Payment
Program)- FBZP
Before configure APP create house
bank(Fl12) and below sub ledgers in
FS00 :
1.Hdfc main bank GL
2.Check Issue A/c
3.Check Deposit A/c.
APP(Automatic Payment Program) - FBZP
In APP there are 6 steps :
1.Payment method in country
2.payment method per company code
3.Paying company code
4.Set up all company codes
5.Bank determination
6.Assign payment term to vendor XK02
and post normal invoice in F - 43
 Run APP – F110
Below are the steps involved at the time of APP run :
1.Set Parameters
2.Additional Log
3.proposal(select Immediately and enter)
4.Edit proposal(we can change or no need to change any
thing just save)
5.Payment run(Start Immediately)
6.print data medium, Select maintain variants(Just change
identification) and fill other details and select variants
attribute just change the identification and save
7.Print out(change job number and remove ? Mark and
enter anythig)
8.Select system tab in menu bar, select services next select
output control.
9.Select F8(execute), There you will be find 3 documents
Special scenarios in APP :
1.Advance Payment In APP
2.Partial Payment In APP
3.Discount Scenario in APP
 Screen Shots of various T – codes
involved in the above presentation
APP(Automatic Payment
Program)
Screen Shot
Thank You