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11Maxim Confidential

Accounts Receivable(Trade and Non-Trade)

Maxim ERP




Training Overview Training Overview

Ground RulesGround RulesHousekeepingHousekeeping

Learning ToolsLearning Tools

Course IntroductionCourse Introduction




Getting Started

• Welcome and introductions

• Logistics

– Feel free to ask questions

– Keep discussions at class level

– Don’t leave this class confused




Sign the attendance

sheet

Silence cell phones

and pagers

Check E-mail during

breaks ONLY

Do not work on computers duringinstructor presentations

Minimize side

conversations

Ground Rules




Housekeeping – Logistics

Help manage

activities by startingand stopping on time

Actively listen and participate in

presentations

A break will be taken

[approx] every 2 hrs.Feel free to

ask questions

Restroom andExit locations




Course Description

• This course is intended to equip the Accounts

Receivable Clerk and Accounts ReceivableSupervisor with the necessary skills and

knowledge to perform Accounts Receivable-

relevant processes in SAP.




Prerequisites

• Prior to this course, you should have

attended: – SAP Basics and Navigation




Course Objectives• Upon completion of this course, you will be

able to:

– Describe the overall Receivables process utilizedby Maxim

– Describe the benefits of using SAP in the

Receivables process – Identify the critical terms used in Receivables

processing

– Discuss the difference between master data andtransactional data

– List advantages of using Master Data




Course Objectives (continued)

– Discuss the benefits of using an integrated system

– Describe the inputs to and outputs from

Receivables with other SAP modules

– Process Customer Invoices and Credit Memos

– Describe the integration of SD Documents and AR

– Release Blocked SD Documents – Display Customer Balances and Line Items

– Reverse Documents

– Reset Cleared Items




Evaluations

• In order to be certified and given access to

SAP, you must successfully:

– Complete each exercise




Accounts Receivable Accounts Receivable

Overview Overview Module 1Module 1




Course Map

Accounts ReceivableAccounts Receivable

Incoming Payments and Credit MemosIncoming Payments and Credit Memos

Accounts Receivable OverviewAccounts Receivable Overview

Account MaintenanceAccount Maintenance

SummarySummary

BillingBilling

Sales Documents and ARSales Documents and AR




Module Objectives

• Upon completion of this module, you will beable to:

– Describe the overall Receivables process utilizedby Maxim

– Describe the benefits of using SAP in the

Receivables process – Identify the critical terms used in Receivables

processing







Module Objectives (continued)


– Compare the key changes in the SAP AccountsReceivable process from current process

– Identify critical terms used in Receivables

processing

– Describe the inputs to and outputs fromReceivables with other SAP modules

– Display a Customer Master Record




Benefits of SAP Accounts Receivable

• The Accounts Receivable module is utilized to record andadminister the financial accounting transactions involving

customers. Characteristics of the AR module include: – Real-time integration with the General Ledger

– Integrates with the Sales and Distribution as a part of theOrder to Cash process

– Offers a component to control customer credit exposure(Credit management)

– Handles both electronic and manual incoming paymentprocessing

– Provides a component to monitor past due customersinvoices (with automatic dunning)

– Contains reporting functionality to monitor customer activity




Accounts Receivable Business Process Definition

• The Accounts Receivable module is themodule that records and administers the

financial accounting transactions involving

customers.



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Types of Payments• Full payment

• Partial payment

• Payment with residual items

• Prepayment



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Full Payment• When a customer pays the full amount of an

invoice:

– The payment and invoice are cleared from thecustomer account

– The payment is posted and line items are cleared

against the payment



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Partial Payment• The partial payment is applied as an open

item

• The payment remains open on account untilapplied against the designated line item

• Posting a partial payment:

– Is an alternative to opening a residual item withdifferences between payment and invoice

– Retains both the invoice and partial payment open

on account in original form until invoice is paid infull



2020

Payment with Residual Items• Based on the customer remittance advice, the

payment and line items are cleared

• A residual item is created for the difference

• Posting a residual item:

– Clears the invoice and payment

– Creates a new receivable



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Prepayments• Certain customers are required to prepay

before ordered goods are been shipped



2222

Applying a Payment• Payments can be entered into SAP through

the Payment Fast Entry screen

– Enter payment document header information

– Enter payment details (invoice and accountnumber)

– Select open items to which payment applies – Clear open items against payment



2323

Accounts Receivable Process Flow



2424

Accounts Receivable Integration

Accounts Receivable

Master Data General Ledger

Distribution

Warehouse

Management

Sales



2525

SAP Accounts Receivable Process

Create

Sales Order

Dispatch

delivery

note

Goods

dispatch

(goods issue)

Create

billing

document

Post it to

reconciliation

account

Send

invoice

Produce or

purchase

material

Quotation

Financial

Accounting

Sales &Distribution

Book in

customer

sub ledger

Receive

payment

Clearing




Key Changes – Accounts Receivable

Before SAP

Downloaded bank statements could not reconcile topayments posted

Credit/Debit memos are not integrated with SD

Billing Document Two partner functions: Bill-to and Ship-To






Legacy

New Terms and Concepts

SAP

Sold-toBill-to




Accounts Receivable TerminologySAP Term Definition

Credit Memo A sales document created on the basis of a customercomplaint. This reduces receivables in FI Accounting.

Debit Memo A sales document created on the basis of a customercomplaint. This increases receivables in FIAccounting.

Pro FormaInvoice

An invoice created on paper for exported goods toprovide the customs authorities with evidence of thecost of the goods.




Accounts Receivable Terminology(continued)

SAP Term Definition

Chart ofAccounts

The directory of all the valid General Ledger (G/L)accounts. Maxim uses X standard chart of accounts,called XXXX for all valid company codes. A G/Laccount can be defined for a company code only if itis already defined in the chart of accounts.

Company

Code

Independent accounting unit; in most cases is a legal

entity.

Clearing

Document

Document created to clear open items in an account.




Accounts Receivable Terminology (continued)

SAP Term Definition

CustomerMasterRecord

Record used to track and maintain

information regarding a customer andcontrol how data is posted and processedfor a customer.

Baseline

Date

Date used to control aging of receivables.

PaymentTerms

Arrangements with partners regarding

amount of time to pay and any discountsthat are available.




Accounts Receivable Terminology (continued)

SAP Term Definition

Open Item An invoice or credit memo which still has

not been paid or cleared.

ClearedItem

Item that is no longer open because it hasbeen paid or closed.




The Benefits of an Integrated System

• Master Data Records can beaccessed by other end-users

working within differentmodules immediately afterdata is entered into SAP.

• Invalid or incorrectinformation entered into SAPwill have the sameimmediate effect as validinformation

• Backing out of information

becomes more complex andwidespread in an integratedenvironment

SDSDMMMM

PMPMHRHR

COCOAMAM

PSPSWFWF

ISIS

FIFI

PPPP

QMQM SAP ECCSAP ECCSAP ECC




Master Data

• Master Data: Static data which represents things,rather than events (which is transaction data).

Master Data

Master Data: Material master,vendor master

• General Ledger Master Record

• Vendor Master Record

• Customer Master Record




Master Data Types

• All SAP end-users useMaster Data in someway

• The types of MasterData you use dependon the transactions you

are responsible forcompleting

• Some of the types ofAR Master Data used at

Maxim include:

Vendor

Master

Material

Master

GeneralLedger

Accounts

Customer

Master




Provides consistentand accurate, up-to

date information

Benefits of using Master Data

Data is centrally

located

Data is entered oncein the SAP system

Eliminates dataredundancy

Increases dataintegrity

Data is accessed byall parts of the

business, whichsupports integratedbusiness processes

Master Data typicallyremains unchangedover a reasonably

long period of time

Each piece of MasterData is stored as a

record in SAPMaster DataMaster DataMaster Data

Provides consistentand accurate, up-to

date information

Increases dataintegrity




Master Data vs. Transactional Data

• Master Data is data that remains relatively

static static regardless of what other functions maybe performed in the SAP system

– For example: Material Master or Vendor Master

information – Addresses, Telephone Numbers,Units of Measure, Units of Issue




Master Data vs. Transactional Data (continued)

• Transactional Data is data that is relatively

dynamic dynamic , and changes according to the

transaction and business process beingperformed

– For example: The quantity of goods received on a

Goods Receipt, the processing date of atransaction, the dollar amount of a PurchaseOrder.



3939

Customer Master Records

General Data (Client Level)

Company Code Data Sales Data

• Address and Communication

• Account Control

• Bank Details

• Account Management• Payment Data• Automatic Payment Transactions

• Sales Order Data• Pricing/Statistics• Shipping, Delivery and Billing Data• Payment Terms

• Partner Functions

• Customer Master Records are organized into data screens (views)

that contain information specific to the different functions in a company

• Three types of data can be maintained in the Customer Master Record:

– General Data

– Company Code Data

– Sales Data



4040

Sold-to Party: KMG

Address

Partner Functions

Banking Data

Customer Master

Address

Banking Data

Partner Functions

Customer Master Records – Master record that serves as a

central data repository for allinformation regarding Maxim’sbusiness partners

– Organized according to partner

functions:

• Ship-to: Customer whoreceives the goods/services

• Sold-to: Customer who

places the order for thegood/services

• Bill-to: Customer whoreceives the invoice for the

goods/services• Payer: Customer who pays

for the goods/services



4141

Proposing Order Data from Master Data• Data from master

records isautomatically copied

into sales documents

• Certain data fields (forexample, payment

terms) are copiedfrom the relevantpartner functions (forexample, payer)

• Customer-materialinfo master data takesprecedence overmaterial master data

Sold-to party: ABCSold-to party: ABC

Pricing

IncotermsShipping conditions

Terms of paymentsCredit limit check

Ship-to addressGoods receiving hoursTax

Payer: LMNPayer: LMN

Ship-to: XYZShip-to: XYZ



4242

Display Customer Master Record

• Information needed for Display Customer:

– Customer Number – Company Code




Demo 1.1: Display Customer – FD03

• Display Customer.

• Use the work instruction step titled:“FD03 Display Customer” toperform this transaction. This is a

demonstration

only. Watch as the

instructor shows you how to complete the

task in SAP.






Knowledge Check – Accounts ReceivableOverview

1. True or False. A Customer Master Record

serves as a central data repository for allinformation regarding Maxim’s business

partners.

TRUE




Module Summary• You should be able to:

– Describe the overall Receivables process utilized

by Maxim – Describe the benefits of using SAP in the

Receivables process

– Identify the critical terms used in Receivablesprocessing







Module Summary (continued)

• You should be able to:

– Compare the key changes in the SAP Accounts

Receivable process from current process – Identify critical terms used in Receivables

processing

– Describe the inputs to and outputs fromReceivables with other SAP modules

– Display a Customer Master Record




Incoming PaymentsIncoming Payments

and Credit Memosand Credit MemosModule 2Module 2




Course Map





SummarySummary

BillingBilling






5151

Lockbox Customer Payments

• The Lockbox functionality allows for a bank to send customer paymentdata in a file that is in turn imported to process customer payments.

This process attempts to determine where to apply the payment andwill post directly against an invoice or customer account. If SAP can't

determine the customer, it posts to a specific clearing account in orderto be resolved.



5252

Incoming Payments/Cash Application

Payments may be manually

entered from (not currentprocess):

- Checks

- Bank Statements

Electronic payments (such aswire, EDI, credit card, lockbox)will also post in SAP

Payments can be posted infull, partial, or residual

Write-offs and adjustments willalso take place in SAP

The Incoming Payments/Cash Application processfocuses on the posting of customer payments in SAP.




Demo 2.1: Create Customer Invoice –FB70

• Create Customer Invoice.

• Use the work instruction step titled:“FB70 Create Customer Invoice” toperform this transaction. This is a

demonstration

only. Watch as the instructor shows you how to complete the

task in SAP.




Exercise 2.1: Create Customer Invoice –FB70


• Use the work instruction titled:“FD10N Display CustomerBalance” to perform this

transaction.

This is an independent

exercise. Complete

the exercise prior to moving to the next

module.



5555

Credit Memos

• A Credit Memo is a posting that reduces the

balance of receivables or payables

A customer may be issued aA customer may be issued a

credit memo for reasonscredit memo for reasons

such as inadequate goods,such as inadequate goods,

overpayment, etc.overpayment, etc.




Demo 2.2: Create Customer Credit Memo –FB75

• Create Customer Credit Memo.

• Use the work instruction step titled:“FB75 Create Customer CreditMemo” to perform this transaction. This is a

demonstration


task in SAP.



C t A t Cl i



5858

Customer Account Clearing

• Clearing is the process of converting open itemsto closed items

– Clearing matches open items with documents that

offset the open item

M l Cl i (F 32)



5959

Manual Clearing (F-32)

• This transaction is used to clear transactionson a customer’s accounts receivable balanceaccording customer’s payment advice

• No header information can be changed on thistransaction such as

– Currency

– Posting Date

• Use this transaction when:

– The cash application user needs to clear checks

placed on an account against an invoice

– To clear credit memos against deductions on anA/R account

Manual Clearing



6060

Open items are in fact unfinished transactions.For example, a customer invoice that has

not been settled remains in the customeraccount as an open item until it is paid.

Customer

2,000.003,000.00

5,000.00

Can be cleared

Manual Clearing

Invoice 1

Invoice 2

Payment forInvoices 1 and 2

D 2 3 Cl C t F 32




Demo 2.3: Clear Customer – F-32

• Clear Customer.

• Use the work instruction step titled:“F-32 Clear Customer” to performthis transaction. This is a

demonstration


task in SAP.

E i 2 3 Cl C t F 32




Exercise 2.3: Clear Customer – F-32

• Clear Customer.

• Use the work instruction titled: “F-32Clear Customer” to perform thistransaction.


exercise. Complete


module.

D 2 4 C t C t I i




Demo 2.4: Create Customer Invoice –FB70 (for UK process)


• Use the work instruction step titled:“FB70 Create Customer Invoice” toperform this transaction. This is a

demonstration


task in SAP.

E i 2 4 C t C t I i




Exercise 2.4: Create Customer Invoice -FB70 (for UK process)


• Use the work instruction titled:“FB70 Create Customer Invoice” toperform this transaction.


exercise. Complete


module.

Demo 2 5: Post Incoming Payment F 28




Demo 2.5: Post Incoming Payment – F-28(UK process only)

• Post Incoming Payment.

• Use the work instruction step titled:“F-28 Post Incoming Payment” toperform this transaction. This is a

demonstration


task in SAP.

Exercise 2 5: Post Incoming Payment F 28




Exercise 2.5: Post Incoming Payment – F-28(UK process only)

• Post Incoming Payment.

• Use the work instruction titled: “F-28Post Incoming Payment” to performthis transaction.


exercise. Complete


module.

Knowledge Check – Incoming Payments




Knowledge Check Incoming Payments

and Credit Memos

1. True or False. Payments can be posted in full,partial, or residual.

TRUE

2. True or False. Clearing matches open items

with documents that offset the open item.TRUE




Module Summary• You should be able to:

– Describe how Maxim will process Incoming

Payments – Process Incoming Payments and Credit Memos to

Customer Accounts

– Manually Clear a Customer Account




BillingBillingModule 3Module 3




Course Map





SummarySummary

BillingBilling






Business Process



7373

Business Process

• In SAP, the term Billing is used broadly to describeInvoices, Credit Memo, Debit Memo or Cancellationdocuments

• Billing occurs at the final stage of the Sales andDistribution module

• Billing documents will interface to the Finance module

to produce Accounting documents• Billing document is organized into header and line

items

– As an example, the header level contains Finance fields such as

the Payer, Billing date, Terms of Payment and Documentcurrency

– The item level contains the Material, Billed quantity, Weightsand Pricing Elements



Types of Billing Document



7575

yp g

Delivery RelatedBilling

Order RelatedBilling

Billing RelatedBilling

Order

Delivery

Invoice

1

Credit Memo

Request

Credit

Memo

2A

Order RelatedBilling

Debit MemoRequest

DebitMemo

2B

InvoiceCancellation

DocumentX3





Order Related Billing



7878

Order Related Billing

• A Credit or Debit Note Request can be raisedfor in-store credits e.g. product damaged instore, etc. Consequently, the Billingdocument will be created based oninformation from the Credit or Debit Note(Sales Order) document

Credit Note

Request

Credit Note

(Billing Document)





Manual Invoice Creation



8181

Although billing in SAP is automated process, invoices can be created

manually.



Exercise 3.1: Create Billing Document –




VF01

• Create Billing Document.

• Use the work instruction titled:“VF01 Create Billing Document” toperform this transaction.


exercise. Complete

the exercise prior to moving to the next module.





Exercise 3.2: Log of Collective Run –




V.21 (UK process only)

Log of Collective Run.

• Use the work instruction titled:

“V.21 Log of Collective Run” toperform this transaction. This is an

independent

exercise. Complete

the exercise prior to moving to the next module.







Demo 3.4: Output from Billing – VF31




• Print/Re-Print Billing Document.

• Use the work instruction step titled:“VF31 Output from Billing” toperform this transaction. This is a

demonstration


task in SAP.





Demo 3.5: List of Billing Documents – VF05




• List of Billing Documents.

• Use the work instruction step titled:“VF05 List of Billing Documents ” toperform this transaction. This is a

demonstration


task in SAP.



Billing Due List: VF04

• When processing the billing due list you do not



9595

• When processing the billing due list, you do notneed to enter the individual documents to beinvoiced

• Instead, the system lists the documents to beinvoiced on the basis of the selection criteriayou enter

– It can also combine several deliveries in one invoice

Note: AR can use the Billing Due List to look at what

shipments have not been invoiced.

Billing Due List: VF04 (Continued)

• You can run the Billing Due List by any



9696

• You can run the Billing Due List by anycombination of the following selection criteria:

– Billing Date(s)

– Billing Type(s)

– Sales Document Number(s)

– Sales Organization

– Distribution Channel(s) – Division(s)

– Shipping Point(s)

– Sold-To Party(s)



Example of Billing Due List

Th Billi D Li t



9898

The Billing Due Listcontains all items (salesdocuments) that are readyfor billing.

You can select individualsales documents from thelist or process the entirelist.



Exercise 3.6: Maintain Billing Due List –

VF04




VF04

Maintain Billing Due List.

• Use the work instruction titled:

“VF04 Maintain Billing Due List” toperform this transaction. This is an

independent

exercise. Complete


module.





Exercise 3.7: Cancel Billing Document –

VF11




VF11

• Cancel Billing Document.

• Use the work instruction titled:“VF11 Cancel Billing Document” toperform this transaction.


exercise. Complete


module.

Knowledge Check – Billing

1. True or False Billing Document is a generic




1. True or False. Billing Document is a genericterm for invoices, credit and debit memos, andcancellation documents.

TRUE

2. True or False. There are two types of billing:

Order-Related and Delivery Related.TRUE





Course Map








SummarySummary

BillingBilling


Module Objectives

• U l ti f thi d l ill b





– Describe the integration between Sales andAccounts Receivable

– Display a Sales Order

– Review a List of Blocked SD Documents – Release a Blocked SD Documents

– Create a Credit Memo Request

















Credit Memo Requests

• A credit memo request is a sales document used in complaintsprocessing to request credit for a customer



117117

processing to request credit for a customer.

• Use: If the price calculated for the customer was too high (for

example, with the wrong scaled prices or because a discount wasforgotten), you can create a credit memo request. The credit memorequest can be automatically blocked for checking. Once it has beenapproved, you can remove the block.The system uses the credit memo request to create a credit memo.

• Structure: A credit memo request is another type of salesdocument like a standard order. A credit memo request starts thebilling process.









Module Summary

• You should be able to:




– Describe the integration between Sales andAccounts Receivable

– Display a Sales Order

– Review a List of Blocked SD Documents

– Release a Blocked SD Documents

– Create a Credit Memo Request




Account Account Maintenance Maintenance

Module 5Module 5

Course Map

A t R i bl








SummarySummary

BillingBilling










Exercise 5.2: Display Customer Line Items

– FBL5N• Display Customer Line Items.




sp ay Custo e e te s

• Use the work instruction titled:“FBL5N Display Customer LineItems” to perform this transaction.


exercise. Complete

the exercise prior to

moving to the next module.







Reset Clearing

• Although clearing is an automated process, there are someinstances in which manual clearing may be performed (i.e. in thecase of a Transfer Posting of closed receivable line items).



133133

• However, before manual clearing can be performed, the clearing

variant must be reset. This will break the link between the cleareddebits and credits, opening them up again so that they can be re-cleared against other items.



Exercise 5.4: Reset Clearing – FBRA

• Reset Clearing.




•Use the work instruction titled:“FBRA Reset Clearing” to performthis transaction.


exercise. Complete

the exercise prior to

moving to the next module.






Summary Summary

Course Map

Accounts Receivable

Accounts Receivable







SummarySummary

BillingBilling








Remember to practice!!

• SAP Sandbox Clients will be availablef ll i thi l




following this class

• Your SAP Sandbox ID and password

– Your log-on I.D.s

– Password: initpass

• Help Desk: Use your local number

PROCEED

TO

SANDBOX

Post Go-Live Support

• Access SAP Maxim Help for context-sensitivework instructions



143143

work instructions.

– Use Maxim Help before utilizing the other helpoptions.

• MAXIMERP-Help Web site

• Key Users

• Technical Support