Financial Operations are a collection of functions in the areas

of Receivables Management, Invoice Management, and Settlement

Management. A streamlined Payables Management System manages the
full end-to-end process from purchasing, to payment of items. It will reduce
costs with automated exception handling, validation, and routing of invoices
to gain better control of invoicing, and integrate electronic documents into
your accounts payable process to ensure high collaboration and easy
document exchange and archiving.

Receivables Management includes billing to customers and managing

disputes, collections, and customer credit risk. Today, receivables managers
must constantly balance the need to decrease Days Sales Outstanding
(DSO) and bad debt write-offs, while maintaining superior customer service.
SAP provides automated, integrated, and collaborative processes for
receivables management.

You can integrate data for Credit Management applications by integrating

Sales and logistics processes based on real-time data from a single source of
truth. You can also standardize and automate your Lease
Accounting activities, like creating and managing new contracts, setting
reminder rules, and running reports that help you save time and effort to
make more informed lease management decisions.

Financial operations includes:

 Receivables Management
o You use accounts receivable accounting to process open
customer invoices and monitor incoming payments.
 Invoice Management
o Invoices are created in purchasing and submitted to accounts
payable. As an accounts payable accountant, when you receive
an invoice, you can view Key Performance Indicators (KPIs) for
the invoice, and process the invoice.
 Electronic Bill Presentment and Payment
o Electronic Bill Presentment and Payment enables presenting bills
on the Web, thus allowing your customers to pay their bills
online.
 Settlement Management
o Settlement management provides the sales rebate processing,
purchasing rebate processing and sales commission settlement
including core business functions that are fully integrated in the
order-to-cash cycle.
o Rebate processing and commission settlement is used to settle
subsequent rebates and commissions based on business volume
or quantity. Settlement can take place at document item level.
Due to the high volume of documents involved, settlement is
usually based on cumulative key figures, like business volume,
derived from transactional data in documents.