What is SAP R/3 Architecture?

SAP is a 3-tier architecture and also called as a R/3 Architecture. In SAP R/3, R is called as ‘Real-Time’ and 3 represents as a “Three Tier Architecture”.

The arrangement of systems or layers is called as SAP Architecture. SAP is a Real time 3 tier architecture.

SAP R/3 Architecture consists of 3 layers i.e.

1. Presentation Layer
2. Application Layer &
3. Database layer

Let’s discuss briefly about all the layers of the SAP Architecture.

Presentation Layer:

Presentation Layer is the user interface i.e screen display. The user-interface can be through the SAP GUI Application, Web browser, Fiori, etc.

• Example of presentation Layer: SAP GUI, Fiori, browser, etc.

When the user inputs the data on the presentation layer, it communicates with the application layer based on the request from presentation layer and displays the results on the presentation layer that results from the application layer.

So, It is an environment where the users sent the request and as per the sent request the presentation layer displays the results.

For Example: The user is trying to extract the vendor reports through the FBL1n.

• On SAP GUI screen (Presentation Layer), the user executed the transaction code “FBL1n”
• Based on the user request, the presentation layer interacts with the application layer.
• Now the application layer interacts with the database layer, and the database layer sends the data back to application layer and application layer send the data to the presentation layer
• Now the data of FBL1n report displays on the GUI screen.

Application Layer:

Application layer is also called as software layer. It is middle layer of the SAP R/3 Architecture.

The application layer communicates with the database layer and retrieve’s the data from the database as per the user request and process the data to the presentation layer.

• ABAP Programs are executed application layer
• The dispatcher component at application layer assign the tasks/process to the work processors.
• The Work processors execute the program

The different components in the application layer are as follows:

• Dispatcher
• Gateway
• Work process

Database Layer:

The database layer is layer where all the data is stored. The data is stored in the form of tables. Each table consists of multiple rows and columns.

• SAP supports various databases like SAP Hana, Oracle, MSSQL, etc.
• Now SAP S4HANA supports only HANA Database (HDB).

Different Types of Architecture

The latest SAP Architecture is R/3 – Three tier Architecture. Earlier, there different types of architecture. The following are the different types of architectures

1. SAP R/1  Architecture
2. SAP R/2 Architecture
3. SAP R/3 Architecture

1-Tier Architecture (SAP R/1)

• In this single tier architecture, all the layers (presentation layer, application layer & database layer) exists in the same system.

Two-Tier Architecture (SAP R/2)

• In the 2-tier architecture,  presentation layer exist in different system and application layer & database layer in another system.

Three Tier Architecture (SAP R/3)

• In this R/3 Architecture, there is a separate system for each layer.

It is mandatory that every SAP consultant and end user that working on SAP system should understand the different of Data in SAP that actually exists. In this SAP S4 Hana tutorial, we have given an overview of types of SAP Data with a detailed explanation and examples.

Types of Data in SAP S4 Hana

We have the different types of data available in the SAP system, and

1. Configuration Data/ Customization data
2. Master Data
3. Transaction Data

Configuration Data

Configuration Data is the table data where the consultants do the configuration in the Implementation Guide screen. All the consultants will do the configuration from the SAP IMG screen (SPRO Transaction Code).

• When you change the configuration data from the SAP Implementation Screen, the data is get saved in a Transport Request (TR)
• As per the system landscape, the data moves from one system to another system through the TR.

Examples of Configuration Data

• Organization Structure
• Global parameters
• House Bank
• Automatic Payment program (FBZP)
• Pricing Procedure

Master Data: Master data is the core data that exists for the longer period of time and but changes very rarely. The Master Data are created based on the configuration data.

• G/L Master data
• Supplier Master data
• Customer Master data
• Bank Master Data

For example:

• To post a vendor invoice, the vendor master records are required, where the vendor master records consist of complete details of the supplier such as Address details, Payment details, Bank account details, etc.
• To post a customer invoice,  customer master data must be available in the system.

Transactional Data: The transaction data is the data where the users post the day-to-day business transactions. The transactional data is created based on the configuration data & master data. The transaction data is alway changing and increasing the records continously as per the business process. The transactional data are executed by the end-users.

Examples of Transactional Data:

• Purchase Orders
• Sales orders
• Customer Invoices
• Vendor Invoices
• Incoming Payments
• Outgoing Payments.

What is Installment Payment Terms in SAP

Installment payment terms in SAP determine the due dates of invoices as per the installment dates. The system splits the document line items according to the due dates with the installment payment terms. The payment terms are configured at the client level, so any supplier or customer master record can use the payment terms.

Scenario: The business has a requirement for vendor payment in 3 installments i.e.

• 40% 1st installment in 20 Days
• 30% – 2nd Installment in 45 Days
• 30% – 3rd Installment in 60 Days.

As per this scenario, we need to configure the installment payment terms in SAP and assign them to the supplier master record under the company vendor payment transaction segment level.

To configure this Installment terms of payment, you need to maintain the following steps:

• Creation of Main Terms of Payment
• Create terms of payment as per the installments
• Assign the installment terms of payment to the Main payment terms.

As per the below image, we are going to configure the following installment payment terms

• A004 – Installment Payment Terms
• A001 -40% 1st Installment Due in 20 Days
• A001 -30% 1st Installment Due on 45 Days
• A001 -50% 1st Installment Due on 60 Days

The main difference between the normal payment terms key and installment payment terms key is that in the installment payment terms configuration, you need to activate the option as Installment Payment. So the system can determine the A004 is for installment payment.

Creation of Main Payment terms – A004

Step 1: Execute the SAP transaction code “OBB8”

Step 2: From the change view “terms of payment” screen click on the new entries button

Step 3: On new entries of the terms of payment screen, enter the following details

• Payment Terms: Enter the payment terms key: A001
• Own Explanation: Enter the complete descriptive text for the A004: Payment Terms
• Account Type: As per our scenario, this payment term is applicable for vendors only, so check the vendor option only under the account type
• Document Date: Select the document date radio button for the default baseline date. Based on the baseline date, the due date is calculated.
• Installment Payments – Activate the installment payments options under the payment terms tab. This option should be activated for the main payment terms key A004 only.

After maintaining the A004 Terms of Payment Key, the next step you need to maintain the payment terms as per the installments

Step 4: Create Installment Payment Terms – A001, A002 & A003.

Payment Terms A001 – 40% 1st Installment Due in 20 Days

On the Terms of Payment overview screen, click on the “New Entries” Button.

On the new entries screen, Update the following Details

• Payment Terms: Enter the installment payment terms key: A001
• Account Type: Select the account type
• Baseline Date: Select the baseline date as the “document date”
• Payment Terms: Update the percentage and no of days details. As per the scenario, 1st installment is 40% of the total amount and the due date is on before 20 days. So we maintained the percentage as 40 in Percentage and  20 in No of days.
• Click on the save button to save the A001 Payment Terms

Payment Terms A002 – 30% 2nd Installment Due in 45 Days

Similarly, create the 2nd installment Payment Term A002 with the percentage as 30 & No of days as 30.

Payment Terms A002 – 30% 3rd Installment Due in 45 Days

Similarly, create the 3rd Installment Payment Term A003 with the percentage as 30 & No of days as 60.

Click on the save button to save the details.

Define Terms of Payment for Installment Payment: OBB9

After maintaining the main payment term key and the installment terms of payment key, the next step is to link the installment payment terms key A001, A002 & A003 to the maintain terms of payment key A004.

Step 5: Execute Tcode OBB9.

Step 6: On the change view “Terms of Payment for Holdback/Retainage” overview screen, click on the “New Entries” button.

Step 7: On the new entries screen, update the following details

• Terms of Payment: Enter the main payment terms key i.e. A004
• Installment: Enter the installment numbers. As per the scenario, we have entered 1 for A001, 2 for A002, and 3 for A003. So the system determines the installment
• Percentage: Enter the percentage that is applicable for the installment.
• Payment Term: Enter the installment payment terms key, so the installment payment term will be linked to the main payment terms.

Click on the save button and save the details in the SAP S4 Hana system.

Cash Discount in SAP

Cash Discount in SAP refers to the percentage of discount provided on the sales or purchase under the payment terms if the invoice amount is paid before the due date.

• Due dates on customers’ or vendors’ invoices are determined based on the payment terms.
• The cash discounts are configured in the terms of payment (payment terms) with the percentage of discount granted if the invoice amount is paid within the due.
• date.
• The payment term is assigned in the Vendor Master Record under the Vendor Payment transactions or when you are posting the invoice you can assign the payment term key directly here. It overrides the payment terms at the invoice level.
• The system posts the cash discount amount automatically based on the configuration in the system

As per terms of payment Z101 – Due Date within 30 Days & 2% Cash Discount Provided if paid within 15 days.

For example:

• On 29.01.2024 vendor invoice with the amount of 1000$ was posted with the payment terms: Z101
• As per the Payment terms, the due date of the invoice was: 28.02.2024
• If the invoice was paid before 15 days of the due, the 2% discount i.e 20$ on 1000$.
• If the invoice is paid after 15 days of the document date i.e. on or before of 30 days, no discount will be applied during the payment and the full amount of 1000$ to be paid to the vendors.

Account Entries with Cash Discount

Accounts Payable: Vendor Invoice

Vendor A/C                                     – Dr
Bank Clearing A/C                      – Cr
Cash Discount Received A/C –  Cr.

Types of Cash Discount Clearing in SAP

Types of cash discount clearing are

• Gross Posting
• Net Posting.

The document type (T-Code OBA7) RE is used for Gross Posting and Document type RN is used for Net Posting.

Process Steps to Post the Cash Discount

Before you process the cash discount for the vendor invoice, make sure you have completed the following steps

• Maintain Terms of Payment
• Creation of Cash Discount G/L Account
• Account Determination of Cash Discount for automatic postings
• FI Tolerance for Users

As per our scenario, we are going to post the cash discount invoice through the Automatic Payment Run (F110).

Step 1: Post the vendor invoice in SAP using Tc0de FB60. We have posted the following vendor invoice using Tcode FB60 with the payment term: Z101 (2% Discount if paid within 15 days, 30 days due net).

• After updating the required details at the document header and Line Item level, navigate to the Payment Tab and update the payment terms to Z101.
• The system automatically calculates the due date and cash discounts based on the payment terms that you have assigned to the invoice,

Step 2: After posting the vendor invoice, the next step is to make the payment to the vendor invoice. The payment can be processed with

• Manual Outgoing Payment: F-53 or
• Automatic Payment Run: F110

As per our scenario, we are going to clear this invoice through the F110 tcode i.e. Automatic Payment Run.

• Execute T-code: F110

Step 3: Navigate to Parameters and update the required details

• Note: Make sure you have selected the Next Posting Date as “After 15 days of document”. As per our scenario, we have selected the date as “20.02.224” so the system picks this open invoice for payment.
• Navigate to Additional Log and activate the required details.

Step 4: Click on “Proposal Run” select “Start Immediately” and press enter to continue.

Step 5: Click on the payment run tab and again click on “Start Immediately” and press enter to continue.

Now you can see under status as “Posting orders: 1 Generated, 1 Completed“.

Step 6: After clicking on the payment status, the system displays the complete payment log. As per the below screenshot

• Document 1006002 company code ABC1 currency USD payment method B
• Cash Discount “50” was automatically posted in SAP.

Step 7: To view the posted payment document# 1006002, execute FB03 tcode and enter the Document Number 1006002, Company Code: ABC1, and fiscal year.

• As per display document: 1006002, the discount amount of 50 USD has been posted to the G/L account: 400010 (as per Account Determination of Cash Discount for automatic postings)

Account Determination for Cash Discount in SAP

When the cash discount is applied during the customer’s and vendor invoice payments, the cash discount amount is automatically posted to the respective G/L accounts based on the configuration of account determination for cash discounts in SAP S4 Hana.

• The cash discount on vendor invoices is posted to the cash discount received (SKE) transaction.
• The cash discount on customer invoices is posted to the cash discount expenses (SKT) transaction.

The cash discount received from vendors is an income to the business and where the cash discount is given to the customers are expenses to the business. The following are the important configuration steps that are to be done for the cash discount process

• Define Accounts for Cash Discount Taken
• Define Accounts for Cash Discount Granted.

Define Accounts for Cash Discount Taken

Before assigning G/L accounts for cash discount account determination, make sure you have created cash discount G/L accounts.

Step 1: Execute the Tcode OBXU in the SAP command field

Step 2:  Enter the operational chart of accounts key “ABCD” and enter

Step 3: On the configuration Accounting Maintain – Automatic Posts rules screen, Click on the save button to save the details.

Step 4: Now enter the Cash Discount Received G/L account: 400010 under the account assignment and click on the save button to save the details.

Define Accounts for Cash Discount Given- Expense

The cash discounts that are provided to the customers are treated as the expenses account and the cash discount expenses G/L account is assigned in the OBXI Tcode.

Step 1: Execute Tcode “OBXI” in the command field enter.

Step 2: Enter the chart of accounts: ABCD and press enter to continue.

Step 3: After the chart of accounts assignment, click on the save button

Step 4: On the cash discount expenses account assignment screen, enter the cash discount expenses G/L account: 300010

Click on the save button and save the configured Account Determination for Cash Discount in SAP S4 Hana.

• During the payments, the system automatically posts the cash discount amount and posts the amount to the Cash discount received or cash discount expenses account.
• For vendor invoices, the cash discount amount is posted to the SKE cash discounts received transaction.
• For customer invoices, the cash discount amount is posted as the expense account for SKT transactions.

How to Create Cash Discount G/L Accounts

In the SAP S4 Hana, the cash discount G/L accounts are created with the G/L account type the “P Primary Cost or Revenue”. We are creating the following cash discount G/L accounts for the purpose of cash discount received and paid.

Creation of G/L Account: 400010 : Cash Discount Received

Step 1: Execute the tcode “FS00”

Step 2: Update the following details:

1. Enter the G/L Account: 400010
2. Company Code: ABC1
3. Click on Create.

Step 3: Type/Description: Update the following details

1. G/L Account Type
2. G/L Account Group
3. P&L Statement account type
4. Description

Step 4: Navigate to control data and update the following details

1. Posting Without Tax allowed – Activate this check option, so the system allows you to post the transaction without entering the tax code.
2. Sort Key: Enter the Sort key from the list
3. CElem Category: Enter the cost element category as 01 (Primary Costs/ Costs-Reducing Revenue).

Step 5: Navigate to “Create/Bank/Interest” and update the following details

• Field status group: Update the field status group as YB01 / GB01.

Click on the save button and save the G/L account: 400010 in SAP S4 Hana.

Create Cash G/L Account: 300010 – Discount Expense

Step 1: Execute Transaction Code “FS00”

Step 2: Give the G/L account: 300010 and Company Code: ABC1, and then click on the “Create” button

Step 3: Update the following details

• G/L Account type
• Account Group
• Description – Short text and G/L account long text.

Step 4: Navigate to control data, and update the following details for the discount expense account.

1. Tax Category: Update as * (all tax types allowed)
2. Posting without tax allowed: Activate without the tax allowed
3. Sort Key: Update the sort key: 001
4. Cost Element Category: Update the key: 01

Step 5: Navigate to Create/Bank/Interest and update the field status group: YB01/GB01.

Click on the save button and save the created G/L: 300010 Cash Discount Expense Account in SAP S4 Hana.

How to Change Documents in SAP

Once an Invoice document has been posted, you can’t delete the posted documents. SAP allows you to change and update some fields on posted documents. The Following fields can be updated in the posted document

• Document Header Text
• Reference
• Assignment
• Payment Terms

The system won’t allow you to change the following fields

• Document Data
• Posting Date
• Amount

Scenario: You have posted the document with the incorrect amount, now the document has to be updated with the correct values.

• You are not allowed to modify the amount values once the document is posted.
• To rectify this issue, you need to reverse the document in SAP, this is the only solution in SAP.
• When the document is reversed, the line items are reversed i.e. Debit Line item will be converted to Credit, and the Credit Line Item converted to Debit.
• Now the original document values become zero.

Solution: Reverse the Original Document and Post the document in SAP with the correct amount.

How to Change an Invoice Document in SAP – Document Header

In our previous tutorial, we have a posted G/L document in SAP with an amount value of  6000 USD. Let’s update this invoice document as per our scenario.

• Each FI document has two levels i.e. Document Header and Line Item
• You can update the details at the document header and line item level.

Step 1: Execute Tcode “FB03”

Step 2: On the display document: Initial screen, enter the

• Document Number
• Company Code and
• Fiscal Year

Step 3: Now the document displays as per the specified document number.

To Edit a document a header level

• Click on “Edit Icon”
• Click on the Header icon

Step 4: Now the system opens the document header screen. You are allowed to change the details of text fields only

• Document Header Text
• Reference.

Update the required details, press enter or click on the continue icon to update the details.

Change Document in SAP – Line Item Level

Step 5: Click on the line item that you want to update the details.

Step 6: As per the below image, the text field and assignment fields are opened to update the details, and the remaining fields are greyed out.

• Update the text field, as per our scenario we have updated the text field to “Test G/L Document”
• After changing the required details, click on the save icon to save the updated details in the SAP S4 Hana system.

What is Automatic Payment Run in SAP (F110)

The automatic payment program determines what you have to pay, when you have to pay, and how you should pay through the payment rules that are configured in the Automatic Payment Program Configuration.

Every small, medium, or big organization processes various transactions and makes payments to the suppliers as per the payment terms. It will be easy to make the payment manually for a few invoices, but if there are bulk invoices it is not easy to make the payment manually.

Automatic Payment Run allows you to find the invoices which are due and which are partially cleared. It picks all the all due invoices and clears the open items.

The Automatic Payment Run in SAP process starts with the selection of open line items of vendors and clears those items based on the terms of payments, The Automatic Payment Program process steps are as follows

1. Maintain Parameters
2. Start the Proposal Run
3. Edit the Proposal
4. Start the Payment Run
5. Schedule the Print.

Before you test the Automatic Payment Program, make sure you completed the following settings

• Creation of Bank G/L account
• Creation of a Bank Account
• Configuration of Automatic Payment Program
• Define number ranges for payment documents
• Update Vendor Payment Transactions – Payment Terms & Payment Method
• Post Vendor Invoices

How to Execute Automatic Payment Run in SAP S4 Hana

Scenario: Clear all the open invoices of Vendor: 6001001 through the SAP F110 payment run

We have two non-PO vendor invoices with amount values of $6000 & $5000. We will clear these documents through the SAP F110 transaction automatic payment run.

The Payment run can be executed from the SAP GUI and Fiori also. Based on the organizational requirement, you can process payment run via GUI or Fiori application.

Step 1: Execute the transaction code “F110”

Step 2: On “Automatic Payment Transactions” status, update the following details

• Run Date: Enter the run date as today’s date. The run date is the date on which date the payment run is processed.
• Identification: You can provide any identification ID

SAP F110: Payment Parameters

Step 3: After maintaining the Run Date and Identification details, navigate to the parameter Tab and update the following details

• Posting Date: Enter the posting date of the payment run. By default posting date will be the current data
• Document Entered Up to: Based on this date, the system picks all the open invoices that are entered before this date.
• Company Code: Enter the list of company codes that you want to include in the invoices for payment: ABC1
• Payment Method: Enter the payment method key: B
• Next posting Date: It refers to the date when you again run the Payment Run. Based on the next posting date, the system picks all the open items that are due on or before this next posting date.
• Supplier: Enter the list of suppliers that you want to clear the invoices. For testing purposes, we have selected Vendor account number#6001001

Step 4: After maintaining the parameter, navigate to Free Selection.

• You can ignore this option if you want to select all the invoices as per the parameters updated.
• Under the free selection option, you can select the specific document numbers for the payment.

Step 5: Navigation to Additional Log and activate the required logging type.

• Due Date check
• Payment method selection in all cases
• Line items of the payment documents

After maintaining all the required parameters, click on the save button. Now a message displays as a “Details have been saved for the run on 18.01.24 RUN1.

Payment Proposal

Step 6: Navigate to the Status tab and under the status, you can check as “Parameters have been entered.

Now Click on the “Proposal“ option.

Under the schedule proposal, select “Start Immediately”

Successfully, a payment proposal has been created.

Step 7: Click on “Display Proposal” to view the payments and exceptions.

On display payment proposal: payments, it displays the list of payments and exceptions.

Based on the parameters, the system displays the list of documents that are included. Click on the Supplier to view the complete list of documents that are included in this payment run.

Now it displays the list of open items.

SAP F110: Payment Run

Step 8: Go back to the main screen, under the automatic payment transaction status screen

Click on the Payment Run option

The payment run can be scheduled as per the date and time. As per our scenario, we need to execute the payment run immediately. Click on the option “Start Immediately”

Step 9: Click on refresh status (Shift+F2). Under the status, you can observe as

• A payment run has been carried out and
• Posting order: 1 generated 1 completed.

To view the complete payment log, click on the option “Payment” log

Now the system displays the Job log entries of the payment run. As per the payment log, document# 1006000 was posted.

Successfully automatic payment run F110 has cleared the open invoices of the vendor as per the given parameters. Single payment was executed with a amount of 11,000 USD (6,000 +5,000).

You can view the posted payment document- 1006000.

• Execute tcode FB03
• Enter Document number – 100600
• Company Code: ABC1
• Fiscal Year: 2024
• Press enter

Payment document display

Accounting Entries at the Payment Run:

Vendor A/C  – Dr
Bank Clearing A/C  – Cr

Successfully Vendor account is cleared and the Bank clearing account is open status. At EBS, the Bank clearing account item will be cleared.

Vendor Creation in SAP

In SAP ECC, the vendor is created using the code XK01 or FK01. Now in SAP S4 Hana the vendor creation is possible only through the tcode BP (Business Partner).

In this SAP Hana tutorial, you will learn how to create a vendor in SAP S4 Hana using the transaction code “BP”.

• The creation of suppliers/customers are only through the BP transaction code, so in S4Hana the vendors are created as Business Partner
• The tcode XK01 and FK01 are absolute in SAP S4 Hana. When you execute this tcode XK01 in S4 Hana, it will redirect to the BP transaction screen.
• Business Partners can created as employee, Organization and Group.
• Two account numbers are created i.e. 1 for Business Partner and 1 for Vendor Account. You can maintain the same number range intervals for both Business partner and vendor master records as per the requirement.
• Vendor mas

In SAP S4 Hana, before you create a vendor you need to complete all the required Customer/Vendor Integration (CVI).

• Creation of Vendor Account Group
• Define number ranges for vendor account group
• Assign number ranges to vendor account group
• Define number ranges for Business Partner
• Define BP group and Assign number ranges
• Customer/ Vendor Integration
• Create a Reconciliation G/L Account for the vendor

How to Create a Vendor in SAP S4 Hana

Vendor Master Records are created at three segment levels

• General –  With BP Role: 00000 (General)
• Company code – BP Role: FLVN00 (Supplier Financial Accounting)
• Purchasing – BP Role: FLVN01 (Supplier)

Step 1: Execute Tcode “BP” from the SAP Easy Access screen.

Step 2: Click on “Organization” as vendors are created as an Organization

Step 3: Initially, we need to create a BP with a General segment.

• Create in BP Role: Select the BP Role as 000000 Business Partner (Gen)
• Grouping: Select the BP grouping, in our case we have selected BP grouping as A001: Domestic Supplier
• Address: Update the required address details such as
  • Name
  • Search Terms
  • Standard Address
  • Communication Details

Step 4: After updating the address details, navigate to the Payment Transaction Tab.

• Vendor Payment Transactions details are used during the Automatic Payment Run. The Bank details of the vendor must be maintained.
• Update the bank details of the supplier.

Click on the save icon to save the created Business Partner details.

Successfully Business Partner has been created at the General Data Level. The next step is the BP has to be extended to the Vendor.

Step 5: Click on “Change Icon” and select the BP role as “FLVN00″

Step 6: On the new role supplier (Financial Accounting), click on “Company Code”

Step 7: Enter the company code and press enter to continue

Step 8: Under the vendor account management, update the update the vendor reconciliation account: 200101

Step 9: Navigate to Vendor: Payment Transactions and update the following details

• Payment Terms: Update the payment terms that is applicable to this vendor account. We have assigned: Z102 (due within 3 days)
• Payment Method: Update the payment method: B

Click on the “Save” icon to save the vendor creation in the SAP S4 Hana system.

Vendor Invoices in SAP

In this SAP S4 Hana tutorial, you will learn how to post Non-Purchase Order (PO)  vendor invoices using the FB60 tcode in SAP.

• We use FB60 Tcode to post the Non-PO vendor Invoices
• To post PO vendor invoices, we use the transaction code “MIRO”
• Once you post the PO/Non-PO invoices, the vendor invoices will be shown as open items under the Vendor line item report (FBL1n)
• This vendor open items can be cleared using the manual payment process (F-53) or automatic payment run (F110)
• Once you clear the vendor invoice, the clear item shown under the cleared items in the report with a green signal
• Each FI document has two levels – Document Header and Line Item

What are the accounting entries for vendor Invoice

Accounting Entries are:

Expenses A/C –    Dr
Vendor A/C  –          Cr

Accounting Entries of PO Invoices

GR/IR Clearing A/C – Dr
Vendor A/C               –    Cr

Account Entries at Payment

Vendor A/C  – Dr
Bank Clearing A/C – Cr

How to post Non PO vendor invoices in SAP using Tcode FB60

FB60 Tcode: Execute Tcode FB60 in SAP command field

Step 2:

On the document header vendor invoice, update all the required details

• Vendor Account Number
• Reference details
• Invoice Date
• Amount
• Text

Line Item Level

• Expense G/L Account
• Amount
• Cost Center
• and any other mandatory fields

Step 3: Navigate to the Payment Tab,

• The payment terms will be automatically determined from the vendor master record. Payment terms are assigned under the Vendor Payment transactions.
• As per the payment terms: Z102, the due date is 21.01.204 and payment should made before this due date.

Click on simulate to preview the invoice and click on post to post the vendor invoice in SAP.

Successfully, the document was posted in company code ABC1

How to post vendor invoices with the reference document in SAP

In the previous step, we posted the vendor invoice in SAP with an amount of 6,000,00 USD, and document 1003007 was generated. With reference to document# 1003007, we will post a new invoice.

Step 1: Execute SAP Tcode FB60

Step 2: From enter vendor invoice > Navigate to the option Go to > and click on post with the reference option. You can also use the shortcut key Shift+F9 to post with reference

Step 3: From the post document: Header data, update the reference details

• Document number
• Company code
• Fiscal Year

After updating the details, press enter to continue

Step 4: Update the reference details and press enter to continue

Step 5: Click on the first line item to edit the required details

Step 5: Item 1 / Invoice / 31, update the required details for line item -1

Click on the next item and update for item 2 details

Click on the save icon to post the document. Now successfully document 1003008 was posted in company code ABC1

Also, learn how to post vendor invoices in SAP Fiori.