Vendor Invoice Posting

Hello, everyone! In today’s session of SAP FICO, we’ll learn about accounts payable. We’ll see the different transaction codes used for accounts, and the import process in SAP FICO. Before moving ahead with this session, let us summarize what we have learned from our masters and transactions session. So in the master session we have seen how to create vendor master code, customer master codes, then creation of primary cost elements, secondary cost elements, what general ledger accounts are, and how to extend those GL accounts, then what allocation cost element is. Then we have seen asset master codes, then what are different asset sub number codes. And finally we have seen on how to create bank master key and house bank keys. Also in transactions we have seen how to book and display journal voucher. Then how to book and reverse the accrual or deferal documents, then we have seen individual reversal and mass reversal. We have seen how to create a sample document, display a sample document and how to pass the entries to a sample document. Also we have learned about booking recurring entries and how to post the recurring entries in SAP FICO. So, these were the topics which we have covered in our masters and transaction session.

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Now in today’s session, that is Accounts Payable, we’ll cover the course content which is vendor invoice posting using transaction code FB60 or F43.

Then we’ll see about vendor credit memo posting, that is using transaction code FB65 or F41, vendor invoice payment using transaction code F53 or F58. Then we’ll see advance payments to the vendors, that is using transaction code F48, clearing the down payment using transaction code F54. Then we’ll see memorandum entries or noted items using transaction code F57. And finally we’ll learn about the import process in SAP FICO with an example. So, these are the topics which we’ll be covering through our accounts payable session.

 

Now let us see the first part, that is the accounts payable part. Now under that, first we’ll cover how to do a vendor invoice posting. Now here in vendor invoice posting we’ll use a transaction code FB16 or we can use the shown SAP menu path.

Here we have to decide on the company code in which the invoice needs to be posted and the currency involved. Now the two main things which need to be taken care of is the company code in which the invoice needs to be posted and the other is the currency which is involved. Now both these things are decided by the client and once we get a go ahead from the client we can create an appropriate vendor invoice, and we can post that invoice. Now one can also specify the currency conversion rate that needs to be adopted for the transaction. Now here currency conversion rate is used if the currency is not yet decided, like if we are posting an invoice for Germany and we have created the currency for invoice using INR that is for India, then with the help of a currency conversion rate we can convert the currency from India to Germany. So this is how the currency conversion rate acts. In the reference field enter the invoice number of the vendor invoice and enter the corresponding text. Now here once we enter the FB60 transaction code, we get a screen where we have to enter the vendor invoice number and the corresponding description to it.

So this is how we get a screen for the vendor invoice. Here in this example we have an invoice created for vendor KJ14821. Now here this particular vendor has the address details, this bank account details and the bank number details. Now here when we print an invoice we need to take care of the line items. So, here this is the line item which is created for this particular invoice. Here we need to take care of the amount which is entered for that particular GL account and the cost center. So, these are the details which are mandatory for a particular invoice. Now here by default the above screen for TDS deduction comes up. So here in the above screen we have TDS deduction which is there for tax. TDS is applicable on invoicing or payment whichever is earlier. Now we remove the TDS code against the payment line as this indicates a TDS deduction at the time of the payment. As we all know that the tax are deducted at the time of the payment, so we’ll remove the TDS codes against the payment line.

So here against the payment line we have made a TDS deduction. So here we’ll remove the tick, so here the Calculate Tax is unchecked. Next, if manual adjustments need to be made, the base amount and corresponding TDS amount need to be specified. This is of particular importance in cases when TDS has been deducted on the advance payment. So here we’ll enter the net amount so that TDS gets deducted on the reduced amount. This is how TDS amount is deducted from the payment, that is the amount which is paid to the employee.

The light next to the tabs reflects the balance in the document currency. Now in the previous screen we have seen that we get an indicator on the right hand side/ Now here this indicator indicates that this particular invoice is ready for posting and all the details are correct. So, here the red light indicates balance does not equal to 0 that is posting is not possible. Yellow indicates that it is unchecked status, that is it is in the initial status and posting cannot be carried out. And green signal indicates that the balance is equal to 0, that means that the posting can be carried out. So as I have explained that green signal indicates that the posting can be done for that particular invoice. So, it checks for all the conditions and all the things which are to be mandatory placed in that particular invoice. Now here we can define how we want the debit and credit indicator to appear in the editing options. So, by using the editing options we can mention the debit and credit indicators. And finally we’ll click on the Simulate option and then a document overview will appear in which we can select various options for data preparation. So, here we can simply click on document and then go to Simulate option or we can click the icon which is there on the screen. So then we can get a document overview where we can select options for data preparations.

Now here this is the document overview once we click on the Simulate option. Now here it will give us an overview where we can select the entries which are require. So here we’ll check for the entries which we have entered, if the entry is okay then we’ll save those entries and the document number will be generated. So, this is how we’ll create a vendor invoice.