SAP Financial Accounting Configuration Steps - Lesson 05 : Accounts Receivable

SAP FICO Accounts Receivable Configuration Steps

Step 01 : Creation of Customer Account Group
Step 02 : Create Number Ranges for Customers
Step 03 : Assign Number Ranges to Customer Accounts
Step 04 : Define Tolerance Group for Customer
Step 05 : Creation of G/L Reconciliation Accounts (Debtor)
Step 06 : Creation of Customer Master Record
Step 07 : Document Types and Number Ranges
Step 08 : Bill of Exchange
Step 09 : Dunning

Step 01 :  How to Create Customer Account Group in SAP

Let us learn how to config Customer Account Groups.

Example

Path : SPRO -> Financial Accounting -> Accounts Receivable and Accounts Payable -> Customer Accounts -> Master Data -> Preparations for Creation Customer Master Data -> Define Account Groups with Screen Layout (Customers)

T Code : OBD2

Step 01 : Enter T Code SPRO in command feild and enter.

Step 02 : Go to the above mentioned path.

Step 03 : Click on New Entries.

Step 04 : Update data as follows

Account Group  - Enter four digit customer account group code.

Meaning - Enter the description of customer account group code.

Now select company code data and select Account Management.

Select Reconciliation account as Required Entry.

Step 05: Save entered data.

Proceed all the steps to create other two customer account groups.

RESULT

Step 02 : How to create Number Ranges to Account Groups                                                            

Under this topic you will learn how to create number ranges for above created customer account  groups.                                                                                                                                                

Path : SPRO -> Financial Accounting -> Accounts Receivable and Accounts Payable -> Customer Accounts -> Master Data -> Preparations for Creating Customer Master Data ->      Create Number     Ranges for Customer Accounts

T Code : XDN1                                                                                                                                     

                                                                                                            

Step 01 : Enter SPRO on command field and enter and follow with below path.

Step 02 : Click on change intervals

Step 03 : Enter below details in next screen

No - Enter the number that you are going to identify the customer account group

From Number -Enter starting number in customer account group number range

To Number - Enter the finishing number in customer account group number range

External Assignment - Tick , if required external number assignment

Step 04 : Select save button . Ignore the Waring message and enter. Proceed the same step for created all customer account groups

RESULT

Step 03 :  Assign Number Range to Customer Account Group

Under this topic assign number ranges created on step 02 to customer account groups created on step 01.

Path : SPRO -> Financail Accounting -> Accounts Receivable and Accounts Payable -> Customer Accounts -> Master Data -> Preaprations for Creating Customer Master Data -> Assign Number Ranges to Customer Account Groups

Step 01 : Enter SPRO and go to above path.

Step 02 : Click on Position. Enter Account group in Pop up window and enter.

Step 03 : Enter the number range and click on Save button. 

RESULT 

Step 04 : Define Tolerance Group for Customers

This is very important in SAP System because tolerance deals with the difference of payments of customers.

Path : SPRO -> Financial Accounting -> Accounts Receivable and Accounts Payable -> Business Transactions -> Incoming Payments -> Manual 

T Code : OBA3

Step 01 : Go to mentioned path. 

Step 02 : Click on new entries.

Step 03 : Enter details as follows.

Company Code - Code created for the company

Tolerance Group - Keep this blank and enter the description only

Permitted Payment Differences - Enter the permitted gain or loss amount and percentage

Step 04 : Click on Save button.

RESULT

Step 05 : Creation of GL Reconciliation Accounts

Path : SPRO -> Financial Accounting -> General Ledger Accounting (New)-> Master Data -> G/L Accounts -> G/L Account Creation and Processing -> Edit G/L Account ( Individual Processing) -> Edit G/L Account Centrally

T code :  FS00

Step 01 : Go to below path.

Step 02 : Enter below two details and click on create icon.

G/L Account - Enter the relevant G/L account

Company Code - Enter the relevant Company Code

Click on create icon.

Step 03 : Enter below details in "Type/Description" tab.

Account Group - Select the relevant Account Group.

Tick the Statement Type.

Short Text - Enter the G/L account short text.

G/L Acct Long Text  - Enter the G/L account long text.

Go to Control Data tab.

Step 04 : Enter below details in Control Data tab.

Account currency - Enter the relevant account currency.

Recon. account for acct type - Update as customers

Tick on Line item display.

Sort Key - Update as 031

Go to tab Create/bank/interest

Step 05 :  Select field status group as G067 (Reconciliation accounts ).

Step 06 : Now click on Save.

Step 06 : Creation of Customer Master Record

Path : Accounting -> Financial Accounting -> Accounts Receivable -> Master Records -> Create

T code : FD01

Step 01 : Go to T code FD01

Step 02 : Click on Account group overview button and select the relevant Account group. Then enter the company code and click on continue.

Step 03 : In  Address Tab enter required details.

Step 04 : Click on Company Code Data.

Step 05 : Under Account Management Tab, enter Recon. account.

Step 06 : Under Payment Transaction, Update with Terms of payment and Payment methods.

Step 07 :  Under Correspondence tab, update with Dunn.Procedure.

Step 08 : Click on Save

RESULT

Step 07 :  Document Types and Number Ranges

Document Types

When we take document types, they are defining at client level so they are applicable for all company codes. This document types are used to identifying accounting document types  and controls account types for allowed for posting such as Customer, Vendor , Assets, Material and Normal GL Account.

Now we will see the document Types with reference to customer.

Path : SPRO -> Financial Accounting -> Financial Accounting Global Settings -> Document -> Document Header -> Define Document Types 

Step 01 : Click on New Entries

Step 02 : Update with following data as required.

Document Type - Enter two digit code

Number Range - Enter relevant number range

Reverse Document Type - Enter relevant reverse document type key

Account types allowed - Select relevant account types for the document type

Control data - Select relevant control data for document type

Step 03 : Once update the data, click save.

Step 04 : After saving the document type update the description.

Number Ranges

Path : SPRO ->Financial Accounting -> Financial Accounting Global Settings -> Document -> Document Number Ranges -> Define Document Number Rages

T code : FBN1

Step 01 : Go to the above mentioned path.

Step 02 :In Range Maintenance: Accounting document screen enter the company code and then click on Edit Intervals.

Step 03 : Click on insert icon.

Step 04 : Update with following data.

No - Enter two digit number

Year  - Enter the year

From Number - Enter the starting number of number range assigned

To Number - Enter the ending number of number range assigned

Step 05 : Then click on save button.

Step 08 :  Bill of Exchange

Bill of Exchange act as short term credit to customer.

This configuration includes three main steps.

1. Create new G/L accounts : Customer Bill Of Exchange Account and Bank Bill Discounting Account
2. Link between standard reconciliation and Customer Bill of Exchange Accounts
3. Define Bank Subaccountt

Step 01 :Create New G/L Accounts

Path : SPRO -> Financial Accounting (New) -> General Ledger Accounting (New) -> Master Data ->  G/L Accounts -> G/L Account Creation and Processing -> Edit G/L Account (Individual Processing ) -> Edit G/L Account centrally

T Code : FS00

Step a : Enter G/L Account number and Company code to create customer bill exchange account. Then click on create icon.

Step b:  Tick on relevant type of Chart of Accounts and update account group as Assets, enter the short and long description. Then Save.

Step c : Go to FS00. Give relevant G/L Account and Company code to create bank bill discounting account. Now Click on Create icon.

Step d: Enter the COA type as Balance sheet account, Update the account group as Laibilities and enter both short text and long text.

Step 02: Link between standard reconciliation and customer bill of exchange

Path : Financial Accounting –> Bank Accounting –>Business Transactions –> Bill of Exchange Transactions –>Bill of Exchange Receivable – >Post Bill of Exchange Receivable –>Define Alternative Reconciliation Account for Bills/ Exchange Receivables

T Code : OBYN

Step a : Go to T Code OBYN. Double click on the Special G/L Indicator W Bill of exchange receivable.

Step b:  Now link the AR reconciliation account and the customer bill of exchange account number created on previous step.  Then click on Save icon.

Step 03 :Define Bank Sub account

Path : Financial Accounting – Bank Accounting – Business Transactions – Bill of Exchange Transactions – Bill of Exchange Receivable – Present Bill of Exchange Receivable at Bank – Define Bank Sub accounts

T Code : OBYK

Step a : Go to T code OBYK and click on New Entries.

Step b : Update following details and click on Save.

Chart of Accounts - Update with the COA created.

Bank Account - Enter the relevant Bank Account.

Usage - Select as Discounting

Special GL Indicator - Select as W

Customer Rec. Account -  Enter the standard customer rec acc

Bank sub account for liabilities -Enter the bank bill discounting account created on first step.

Step 08 :  Dunning

Purpose of Dunning in SAP is to remind the outstanding payment to customer. When customer forgot the payments for outstanding invoice within the payment due date it generates a dunning letter.

Define Dunning Areas

Path : Financial Accounting (New) -> Accounts Receivable and Accounts Payable -> Business Transactions -> Dunning -> Define Dunning Areas

T Code : OB61

Step 01: Go to above path.

Step 02 : click on New Entries

Step 03 : Enter the Company Code and the Text as follows

Step 04 : Now click on save ignoring the warning message.

Define Dunning Procedure

Path : Financial Accounting(New) -> Accounts Receivable and Accounts Payable -> Business Transactions -> Dunning -> Dunning Procedure -> Define Dunning Procedure

T code :  FBMP

Step 01 : Go to above path.

Step 02 : Click on new procedure.

Step 03 : Update with following details

Dunn.Procedure - Enter code for Dunning Procedure

Name - Enter description for the dunning procedure

Under General Data enter the required details.

Step 04 :  Now click on Dunning texts. When the new pop up screen appears enter  the company codes and select correct account type. 

Step 05: Click on New Company Code

Step 06 : In popup screen enter company code and continue.

Step 07 : On "Maintain Dunning Procedure: Company code data" screen tick on separate notice per dunning level and Save.

Step 08 : Again in "Overview" screen click on Dunning levels.

Step 09 : Update with following data

Days in arrears/interest - Update according to business requirement

Print Parameters - Tick in relevant print parameters

Step 10 : Click on Charges and in pop up screen enter the currency 

Step 11 : In "Maintain Dunning Procedure: Charges" screen update as follows.

Dunning Level - Enter the dunning level

From Dunning Amount - Enter the from dunning amount

Dunning Charge - Enter the dunning charge

Step 12 : Then click on minimum amounts and update the currency in pop up screen.

Step 13:  In Minimum amount screen enter the Dunning level and Minimum amount 

Step 14 : Then click on Dunning text and update with company code and the relevant account type and click on continue

Step 15 : On "Maintain Dunning Procedure: Dunning texts" update with the dunning procedure from drop down list

Steps 16 :  Once updated dunning procedure click on back button

Step 17 : Then it will return to the " Maintain Dunning Procedure: Overview"  screen. Now click on Save.