Unit 4

Accounts Receivable

Many of the concepts we will cover in accounts receivable were introduced in the Accounts
Payable unit, such as account groups and posting to a subledger account using both the Enjoy
and the Complex posting screens. In addition to seeing how many of the concepts we learned
in the Accounts Payable unit apply to accounts receivable, we will be introduced to some new
tasks, such as applying cash from customers and sending them correspondence, including
dunning letters. Also, we will see how the sales order process works from the sales and
distribution perspective and how FI documents are created automatically during the delivery
and billing steps. Finally, we will see how credit to customers is managed in the SAP system.

Lesson: Customer Master Data

Task 1: Create a customer list
Create a customer list for company code 1000. Afterwards, create a list of all customers in
account group KUNA.

1. Create a list of all customers in company code 1000.

2. Use a dynamic selection to create a list of all customers in account group KUNA.

Task 2: Maintain customer master records

The Becker company of Berlin- Harmsdorf (Postal code 134##) called IDES to inform IDES
of a change to the company's address. The Becker employee does not know the customer
number at IDES. However, the customer number can be queried via the customer's postal code.
1. Use Find (binoculars to left of customer field) to search for customer by its postal code.
Write down the number of the customer account.
2. Enter the changes.
Becker is also a customer of IDES Canada. Do you need to send the changes to Canada
so that the accounting department there has the most current information?

Task 3: Track changes

So that changes to master records can be tracked, a change document is created for every
change made, recording the exact changes made.

1. Display the change document for the changes you just made to the master record
Customer##. What information is contained in the change document?

Task 4: Display changes to multiple accounts

To see what changes were made to all customer accounts today, execute the related program.
 1. Run the report that displays changes to customer master records.

Task 5: Create a new customer in Company Code 1000

IDES has a new customer. Create the new customer master record. The code for the new master
record is New##. The code is not assigned automatically, but entered manually by you. Use
Customer## as a reference when creating the new record. The system uses the account group
(KUNA: general customers) of the reference customer. Therefore, you should not need to fill
in the Account group field.

1. Create New## in Company Code 1000. Use the Customer## in Company Code 1000
as a reference. Fill in a name and an address of your choice. Choose the reconciliation
account for the customers. Choose a term of payment that requires immediate payment
with no discounts.

Lesson: Daily Accounting Transactions in Customers

Task 1: Make and check changes to documents
Becker from Berlin (Customer##) claims that the 5000 EUR invoice for order 800000##, which
it received recently from the IDES sales organization, contains incorrect payment terms.
Instead of the usual 3 percent cash discount for payments within 14 days, the terms stated are
payment due upon receipt. After speaking to the sales organization, you determine that the
wrong terms were entered and the customer should receive the normal cash discount.

1. IDES has configured its system so that the order number is always displayed in the
Assignment field of the customer document. Select the invoice using this field and
change the payment terms to ZB01. This is an invoice for 5000 EUR.

Task 2: Track changes

Check whether the system created a change document for the changes you just made.

1. Display your changes by linking to them from the display of your document.

Task 3: Create an AR invoice using the Enjoy screen (optional)

IDES has just sold some goods to your new customer, NEW##. Create an invoice for 500 EUR
using the Enjoy screen in AR.
1. Create the 500 EUR invoice for NEW##. Use account 800200 as the offset account.
Use tax code 0O (output tax training 0%). Simulate and add text to the document before
posting it.

Task 4: Create an AR invoice using the complex posting screen (optional)

Although most invoices are created through the Sales Order Management process, invoices can
be created in accounting. These invoices are not related to a sales order. They can be created
using either the Enjoy or Complex screens in AR. In this exercise, you will create a new invoice
using the Complex screen.

1. Create a 700 EUR invoice using today's date for your new customer, NEW##. Use the
Complex screen and credit account 800200, revenue. Use tax code 0O (output tax
training 0%). Display the overview of your transaction before posting it.

Task 5: Post manual incoming payment with difference

Customers receives a check and payment information saying that Becker ## (Customer##) is
only paying 80 percent of a 5,000 EUR invoice amount, since the order was incomplete.
Therefore, the check was made out for only 4,000 EUR.

1. Post the incoming payment.

Post the 4,000 EUR check to Incoming payment account 113108. Use today's date for
the document and posting dates and create a residual item for the payment difference.
Record the document number.

Task 6: Check customer accounts

Check whether the open item for 5,000 EUR was actually cleared and whether a residual item
was created.

1. Display all the line items of Customer## to see if the invoice cleared and if a residual
item was created for the difference.

Task 7: Run automatic dunning (optional)

IDES uses the dunning program, to remind customers of overdue payments on items. Most of
the dunning parameters are saved in so-called dunning procedures, which have to be entered
in the customer master record so that the account can be dunned. IDES runs the dunning
program every week.

1. Check master records.

2. Create a dunning run and maintain the parameters.
3. Create a dunning proposal.
4. Customers clerks print out the dunning selection and check the dunning proposal before
the actual dunning run takes place. This helps prevent the sending of incorrect dunning
notices. You can also change the dunning proposal. For example, items from the
dunning run can be removed or the dunning frequency can be reduced.
5. After the dunning proposal has been checked and approved, start the actual dunning
notice printout. It creates the dunning notices and enters the dunning data (dunning
level and dunning date) in the master record and documents.
 6. Update the status by choosing Enter until the dunning run has been completed and the
postings are created.
7. Go to the output controller to view the automatically-created dunning notice.
8. Check the customer account.
Check whether the dunning run updated the dunning data in the master record of
Customer##.

Task 8: Print account statements

Many customers would like a monthly statement from IDES in order to check their records.
This needs to be indicated in the master records of these customers and a special program has
to be started every month. The program selects these customers and creates an account
statement for them.

1. Check whether this setting has been made for customer Becker Berlin (Customer##)
so that Becker gets a monthly account statement. If not, make this setting. Also, change
the language in the address screen of the master record to the language of your country,
if you have not already done so in the optional dunning exercise.
2. In order to print monthly statements, a program has to be started once a month. It selects
the master records with the entry 2 (monthly account statement) and requests the
account statements. The account statements can be printed directly after the request is
made or at a later time.
3. Send the account statements directly to printer LP01 and check the output assignment.

Task 9: Use the Customers Information System

The AR Information System is an additional reporting tool in FI. It does not access the entire
database, but only a preselected dataset.

1. Creating a preselected dataset (optional, as your instructor may run this program for the
whole class).
2. Due-date analysis using the customer information system.
Using the customer information system, create a due-date analysis for company code
1000 per business area.

Task 10: Account analysis

Use the account analysis to check the payment history of Customer##. From the account
analysis, drill down to your payment document and check the header of the document to see
that you created it.

1. Navigate to your payment document for EUR 4,000. Then check the document
overview and the document header.
Lesson: Integration with Sales Order Management
Task 1: Carry out a sales process
The sales organization in Frankfurt (1000) receives a purchase order from the company Becker
## (Customer##). The company orders two pumps, model Cast steel IDESNORM 170-230.
The material has the material number P-109. The purchase order has the number 12## and is
dated today.
1. Create the sales order as a standard order and write down its number. The distribution
channel used is Final customer sales. The division is Cross-division sales. The
customer has requested that delivery be made one week from today.

Task 2: Create outbound delivery

On the customer’s requested delivery date, shipping point 1000 creates the outbound delivery,
the goods are taken from the warehouse (picking), and the goods issue is posted. Carry out this
process.

1. Create the outbound delivery.

2. Pick the delivery by creating a transfer order for warehouse management.
The goods are in the Hamburg warehouse (010). The process should be system-guided.
3. Write down the transfer order number.
4. Go back to the outbound delivery and post the goods issue. Choose Environment →
Document flow to find out the number of the goods issue delivery document.
5. Write down the goods issue:delivery document number.
6. View the goods issue delivery document. From here, go to the accompanying
accounting document and write down the accounting transaction.

Task 3: Bill the customer

The customer must now be charged for the delivery. Bill the customer for the delivery. Then
write down the billing document number.
1. Create the billing document.
2. Display the billing document on the screen and from here, go to the accompanying
accounting document. What information does the accounting transaction contain?

Task 4: Transfer the billing document information to AR

Check that the billing document can be viewed from the customer’s line items.

1. Display the line items of Customer## as of one week from today.

2. From the line items, drill down on the document with document type RV. Branch to the
original document.
 3. From the original billing document, branch to the display of the document flow to see
the documents in the sales order process. What is the status of each document?

Lesson: Credit Management

Task 1: List customers with missing credit data
Credit management master data must be maintained for each customer in order for the
automatic credit control to work. To ensure that this is not forgotten, the credit department runs
a program every day that lists all the customers for whom credit management master data has
not yet been maintained.

1. Start this program for company code 1000. You will find Customer## among the listed
master records.

Task 2: Maintain credit management master data

Maintain the credit management master data for Customer##.

1. Central data
Assign a maximum total limit of 1,000,000 EUR for all credit control areas, and a
maximum limit of 500,000 EUR for each individual credit control area.
2. Data for credit control area 1000
The customer should have a credit limit of 200,000 EUR for credit control area 1000.
Assign the customer to the risk category for customers with low risk (001), and also to
the relevant credit representative group (001).

Task 3: Create a large order

Customer## gives the sales organization Frankfurt (1000) an unusually large order for 50
pumps, model Cast steel IDESNORM 170–230 (material P-109). The purchase order has the
number 13## and is from yesterday.

1. Create the sales order as a standard order. The distribution channel used is Final
customer sales. The division is Cross-division sales. The customer has requested that
delivery be made one week after the purchase order date. Save the sales order.
2. The dynamic credit check reports that the credit limit has been exceeded! Choose
Enter past this message to save the order. Write down the sales order number.

Task 4: Display and release a blocked SD document

The credit department runs a program twice every day that lists all SD documents that have
been blocked as a result of credit checks.

Start this program for the credit representative group for customers with low risk in credit
control area 1000.

1. Run the Blocked SD documents report. Select display variant 001.

 2. Release the order.
By calling the customer, you establish that the customer now wishes to make IDES AG
his main supplier of pumps, and that this order is only the first of many.

Task 5: Raise the credit limit

IDES decides to raise the credit limit to the maximum allowed.
1. Increase the credit limit to 500,000 in credit control area 1000 for the new major
customer, Customer##.

Lesson: Closing Operations in Customers

Task 1: Complete value adjustments for receivables
IDES wants to make a 5 percent adjustment on all foreign receivables that are overdue by more
than 30 days at the time the adjustment is made. A value adjustment key was set up in
configuration and must be entered into the master record of all foreign customers.

1. Check whether valuation adjustment keyAB has been entered in the master record of
customer Foreign##. If not, enter it.

Task 2: Start a valuation run

As part of closing procedures, a valuation run must be started in order to carry out the valuation
adjustment.

1. Use today's date as the run date and your business area, BA##, as the identification.
2. The key date is the last day of the previous month. Use the valuation method Individual
value adjustment. Use the last day of the previous month as the posting date and the
first day of the current month as the reversal date. The document type is SB. Remember
to set the indicator to generate postings.
3. Enter Foreign## in the Selection Options screen.
4. Start the valuation run.
5. Display the valuation list. Two items should have been selected, one of which should
have been reduced in value. A value adjustment is not yet necessary for the other item
because it is not 30 days past due.
6. Transfer the valuation to FI.
7. Check whether the postings were made by looking at the balances of account 142100
(allowance for doubtful accounts) in company code 1000 in business area BA##.
8. If no balance exists in this account for your business area, check your batch jobs to see
if job F107–AC010## exists. This job is created when the batch job did not process
automatically. Process this batch job with the selection Display errors. Correct any
errors to finish processing the job, then re-check the balance of account 142100.
Task 3: Optional (only works if the customer NEW## has been created and posted): Run
the balance carry forward program
At the end of each year, the balance carry forward program is run for balance sheet accounts.
The balances from previous years show up in the first row of the balance report.

1. Check the balance for customer New## for the following year. Then, run the balance
carry forward program for the following year for New##. Re-check the balance in the
customer account again for the following year to verify that the balance from the current
year has been carried forward.