Understanding Accounts Payable in SAP

This article brings you a deeper understanding of accounts payable in SAP. It focuses on the principles of accounting- accounts payable as well as the SAP sub-ledger and some of the different methods of posting transactions.

When dealing with the sub ledger accounts, you consider the accounts payable (vendors) and the accounts receivable (customers.) in the general ledger, you only consider the total amount of money payable that is recorded in the financial statements. You put into consideration accounts payable for all the particulars affecting the business transactions. These particulars include the likes of invoices, cash outflow records as well as the credit memos. This means that you will have to make sure that you document all the transactions in your business. This is because the goods receipts are used to justify all the invoice payments. Thus, proper documentation of these receipts means you will have a proper invoice payment.

The FI-AP is one very vital component. This is because it keeps track and monitors all the accounts and data of the vendors. Moreover, it also plays a central role in the purchasing system as the purchase orders, invoices and deliveries are managed according to the vendors. It is also important during the updating of the vendors.

The FI-AP also plays a very important role of ensuring that all the legal obligations are followed to the letter. It does this by managing the safety keeping of fulfilled records which are important for consistent and reliable accounting. Besides this, this FI-AP serves as the source of information for the optimal purchasing policy. It also serves to support the liquidity plan of the firm. This is because it is involved in the integration with management of cash as well as forecasting of the business organization. It thus becomes a central player in the due date forecasting and accounts analysis of the business firm.

This payment program processes and settles payments due automatically and closes those accounts after payment as a sign of the settled payments. For you to keep proper accounts of these payments, you need to use several records such as journals, account balance, balance audit trails as well as other standard reports. To get the date valuations, you are supposed to evaluate foreign currency records and items as well as know the vendors who are on the debit side. You then go on and have the balances scanned for the remaining records so as to get a reliable and correct figure.

Accounts payable effectively manages all your vendors, the vendors’ deliveries, the payments, the invoices as well as the payments. SAP is very efficient in payments as it is compatible with all methods of standard payment such as bank transfers, checks, which can be both in electronic and printed form. It supports payments even those that have been made fully automatic through the use of this payment program. What’s more? You don’t have to worry about the update of this FI G/L as it is ever updated and the postings are made in FI A-P.

SAP is therefore a good and efficient way to have your payments done in. This article explains how SAP works in collaboration with other programs such as FI-AP. Thus, you now have a deep insight of accounts payable in SAP.
 

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Marissa Hart is the Lead Author & Editor ShareMe. ShareMe is a blog focused on SharePoint Online. SharePoint Online delivers the powerful features of SharePoint without the associated overhead of managing the infrastructure.