XXXX SAP Implementation Project

Account Receivable

Training Agenda
1. Preface
2. Curriculum
3. Account Receivable
4. Summary
5. Evaluation

Training Agenda
1. Preface
1.1 Training Objective
1.2 Training Method
1.3 SAP Log on

Training Objective
At the end of this course, participants are expected to:
Understand SAP Account Receivable concept and process in XXXX which cover:
Objects and relationships in Account Receivable
Customer Master Data Maintenance
Document Type Introduction
Revenue Posting
Interest For Late Payment
Cash Call
Employee Advance
Employee Loan
Incoming Payment
Document Reversal
Special G/L Transactions
Account Receivable Reports
Understand how to do Account Receivable transactions in SAP system
4

Training Agenda
1. Preface
1.1 Training Objective
1.2 Training Method
1.3 SAP Log on

Training Method
Approach That Will Be Used During Training Session

1. Presentation

4. Evaluation
Reference: Evaluation Sheet

2. Demo

3. Activity
Reference: Exercise Book
6

Training Agenda
1. Preface
1.1 Training Objective
1.2 Training Method
1.3 SAP Log on

Icon SAP Logon

Double Click SAP icon on your computer desktop to Log on

Menu SAP Logon

Run SAP Logon application from Start Menu

Click on SAP
Logon

Logon to SAP
Click on SAP Logo and there will be a Logon Pop Up Window

Choose XXXX Production System Server

For training purpose, please choose

XXXX Q&A System (TRN)

10

Client Number, User ID & Password

Fill in the blank fields and then click

or press Enter on your keyboard

Fill with 3 digits Client

Number

Fill with your User ID

Fill with your password

1
2
3

Default Language is English

(EN) if you leave this field
empty

11

Training Agenda
1. Preface
2. Curriculum
3. Account Receivable
4. Summary
5. Evaluation

12

Curriculum

13

Training Agenda
1. Preface
2. Curriculum
3. Account Receivable
4. Summary
5. Evaluation

14

Account Receivable Overview

The following Billing to Cash cycle:

Billing To Cash
Finance
SAP FI-AR
Invoice
Verification

Invoice
Processing

Finance
SAP FI-CM
Invoice
Payment

2010 Accenture. All

rights reserved.15

Roles & Responsibilities

SAP Roles

AR
Accountant

Tasks

Position

Park Outgoing Invoice Document

customer Invoice
credit memo
Display Customer Master Data Company Level

Analyst A/R

Display Account Receivable Reports

Maintain Customer Master Data
AR Master
Data Admin

Delete Customer Master Data

Analyst A/R

Display Customer Master Data

Post Outgoing Invoice Document
Post Incoming Payment
AR
Supervisor

Manager Accounting
Perform Customer Clearing
Superintendent Accounting
Display Customer Master Data Company Code level
Display Account Receivable Reports

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Roles & Responsibilities

SAP Role

Tasks

Position

Park Parameters & Proposal for Automatic Payment

(AR)
Display Document

AR Treasury
Admin

Display Invoice Document

Cashier
Display Customer Master Data Company Code level
Display Bank Master Data
Display Treasury Reports

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Roles & Responsibilities

SAP Role

Tasks

Position
Senior Accounting

AR
Accountant
Corp.

Park Outgoing Invoice Document (customer Invoice &

credit memo)

Accountant
Junior Accounting

AR Master
Data Admin
Corp.

Maintain Customer Master Data

Manager Corporate Accounting
Delete Customer Master Data
Post Outgoing Invoice Document

AR
Supervisor
Corp.

Post Incoming Payment

Manager Corporate Accounting

Perform Customer Clearing

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Account Receivable Module Overview

Customer Master Data
There are 3 master record
General data : information about customer's name, address, language, and
telephone data, VAT numbers, payment transaction (address, control,
payment transaction)
Company code data: specific to an individual company code (accounting
info, payment transaction, Correspondence, WHT tax)
Sales area data: related with the sales organizations and distribution
channels

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Account Receivable Module Overview

Customer Master General View
Customer Name
Address

Account Receivable Module Overview

Customer Master General View
Vendor Number
If clearing between the customer and vendor is required, the customer number must have
been entered in the corresponding vendor master and The fields Clrg with vend. Or
Clrg with cust. Must have been selected in both master records.

Account Receivable Module Overview

Customer Master General View:
Bank Details

Customers house bank can be entered as information to know from

which bank the customer will be paying from

Account Receivable Module Overview

Company Master Company Code View:
Reconciliation Account
Cash Management Group

Account Receivable Module Overview

Customer Master Company Code View:
Payment Term
Payment Tolerance Group
Payment Method

House Bank
Payment Block Reason
Payment History Checking

Account Receivable Module Overview

Customer Master Company Code View:
WHT Details

Account Receivable Module Overview

Reconciliation Account
Customer as Reconciliation Account
Customer are assigned in Group Account in which each of this group
account will have 1 default reconciliation account.
The following list Customer Account Group and Reconciliation Account for in
Energy
Group

Name

ZDTP

3rd Party

ZDRT

Related Party

ZDOT

One-Time Customer

ZDJV

Non Trade - Joint Venture

Recon. G/L Acc.

1131110100 (Gross)
1131110200 (Net)
1260210100 (Gross)
1260210200(Net)
1131110100 (Gross)
1131110200(Net)
1132110300

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Account Receivable Module Overview

Number Range for Customer Account Group
Group

Name

No.
Range

Account Number
From
0000100000

To

ZDTP

3rd Party

D1

ZDRT

Related Party

DX

ZDOT

One-Time Customer

D2

0000200000

0000299999

ZDJV

Non Trade - Joint

Venture

D9

0000900000

0000999999

0000199999
ZZZZ

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Account Receivable Module Overview

Document Type
To differentiate the business transaction type that will be posted.
Customer
DA

Customer Document

DG

FI Customer Cr. memo

DR

FI Customer Invoice

DZ

Customer Payment

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Account Receivable Module Overview

Posting Key
To determine whether the entry for line item is debit or credit and the account
type that will be used for transaction.
The following list of posting key related to Account Receivable:
Customer
01

Debit Customer (Invoice)

11

Credit Customer (Credit Memo)

15

Credit Customer (Incoming

payment)

09

Debit Customer (sp GL)

19

Credit Customer (sp GL)

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Account Receivable Module Overview

Special GL Indicator
To posting transaction into different reconciliation account.
Example: Special GL Cash Call

AR

GL
Customer 200001
1400

AR Recon Account
1400

GL
Alternative Reconciliation
Account

Dr. Customer
Cr. Cash Call

Cash Call
1400

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Account Receivable Module Overview

Special GL Indicator in XXXX related with account receivable
Sp.
G/L

Sp. G/L

Description

CC Paymt.

Cash Call Payment

CC Req.

Cash Call Request

Cutback

Cutback

Recon Acc

Sp. G/L Acc

A/R Partner Billing

(1132110300)
A/P Partner Billing Account
(1132110300)
A/R TRADE 3RD PARTY
(1131110100)
EMPLOYEE RECEIVABLE
PERSONAL (1133210101)
A/R INTERCOMPANY
(1134210100 &
1260210100)
VAT RECEIVABLE - A/R KAS
NEGARA (1153111100)

Accumulated Cash Call

Request (1132110100)
A/R Cash Call Advance
(1132110200)

A/R Partner Billing Account

(1132110300)

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Account Receivable Module Overview

Payment Method
The method that are use for payment from customer
Payment method from customer in XXXX is as follow:
Payment Method
I

Description
Incoming Bank Transfer

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Account Receivable Module Overview

Payment Term
Payment terms specify the calculation of the period between the transaction
and the payment due date
Payment term is set up based on document date
Payment term in XXXX is as follow:

Payment Term

Explanation

ZD00

Receivable immediately due net

ZD30

Receivable 30 days due net

ZD45

Receivable 45 days due net

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Account Receivable Module Overview

Output Tax
Other groups that are not in oil & gas industries will have to include VAT-Out in
their business transactions.
The JVA module requires that an Output tax be assigned to its transactions.
Therefore, the Company may only uses VAT-Out Code A0 for its customer
invoices.

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Difference in Exchange Rate

At every period-end, SAP provide program FAGL_FC_VAL (Foreign
Currency Valuation) to determine the unrealized gain or loss for foreign
currency open items due to difference in exchange rate
SAP will generate a Foreign Currency Valuation report for the authorized
personnel to review who will subsequently post the entry.

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Training Agenda
3. Account Receivable
3.1 Basic Concept and Process Flow
3.2 Transaction and Business Process in SAP
3.3 Demo
3.4 Exercise
3.5 Question & Answer Session

36

Account Receivable Process

Financial
Accounting
Employee
Advance

I/Co
Transaction

Incoming
Cash Call

Claim to
Supplier

Create
Billing
Document

Send
Invoice

Posting
Customer
Sub-ledger

Receive
payment

Posting
reconciliation
GL a/c

Clearing

VAT
Reimbursement

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Account Receivable Transaction

The following transaction related to account receivable in XXXX:
Delivery and Billing Corporate & Gross
Revenue posting
Interest for Late Payment
Cash Call
Employee Advance
Employee Loan

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Delivery and Billing in Corporate Company (1/2)

Oil and Gas
Revenue Department (JV-Revenue) prepares monthly basis documents for all
partners as follows:
Production, lifting, and entitlement report for oil and gas (WNTS)
Invoice for oil lifting (for SEKL, if there is an oil lifting)
Bill of Lading and its supporting documents (if oil lifting occured)

Based on the monthly PLE Report, corporate (Net Companies) will:

Make gas revenue journal entry based on the WNTS PLE report, oil underlifting/overlifting
based on oil PLE report.
Make oil lifting revenue journal entry (for SEKL), if any oil lifting occur.
Prepare invoices for the oil lifting for NUKK, NPCK, Natuna UK2, and Novus Nominess, and
prepare oil revenue journal entries

39

Delivery and Billing in Corporate Company (2/2)

Electricity
Based on Berita Acara Transaksi Jual Beli Tenaga Listrik, Operation Department
(SEGWW) will prepare the invoice journal entry and post by Accounting Manager
Gross Company.

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Delivery and Billing in Gross Company

In Gross Company, revenue section note the employee business advance
transaction, intercompany transaction, incoming cash call from partner, claim to
supplier and VAT reimbursement to BP Migas

41

Offsetting AR and AP in Gross Company

Customer who is also a vendor for the Company and have agreement to pay
with their Accounts Payable will be included in the Offsetting Process.
Only happens in Joint Venture transaction where in gross company note the
partner as customer and in net company (partner) automatically note them
self as a vendor.

42

Incoming Payment
Oil and Gas Revenue
The posting of oil and gas incoming payment in the Net Company through
manual journal entry by debit bank and credit reconciliation account.
Electricity
The posting of electricity receivable in net company through debit the Net
Company bank account and credit intercompany transaction to Gross
Company. And in Gross Company will clears the customer open item.

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Billing Process

44

Billing Process

45

Incoming Payment Process

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Offsetting AR-AP Process

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Training Agenda
3. Account Receivable
3.1 Basic Concept and Process Flow
3.2 Transaction and Business Process in SAP
3.3 Demo
3.4 Exercise
3.5 Question & Answer Session

48

Customer Posting
The primary transaction data
for A/R are:
Customer invoices
Debit/Credit Notes
Customer payments

Customer Invoice: can be

created manually through AR in FI

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Customer Invoice

The invoice can be parked and saved as

complete to edit it again

Check that the balance is zero

The parked invoice can be posted after editing it

Effects of Creating a Billing Document

Sales Information
System (SIS)
Order
Delivery

Customer
Credit Account
Billing
document

Profitability Analysis

Status info. In
order, delivery

Accounts Receivable
Account 1
X

Account 2
X

Revenue Posting - Geothermal

As-Is Accounting Journal (in JDE)
Electricity sales journal to PLN
Dr. 1510.1260.0100

A/R

Cr. 15101000.5250.0100 Sales WW Unit 1

Dr. 1510.1260.0100

A/R

Cr. 15101000.5250.0200 Sales WWw Unit 2

Receipt Payment from PLN
Dr. 1510.1611.0950

Interco MNL-BVI

Cr. 1510.1611.0950
Dr. 1510.1260.0100

Interco MNL-BVI

A/R

Cr. 1510.1260.0100

A/R

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Revenue Posting (2/2) - Geothermal

To-Be Accounting Journal (in SAP)
Electricity sales journal to PLN
Dr. AR (Customer PLN)
Cr. Revenue (WBS for Unit 1)
Dr. AR (Customer PLN)
Cr. Revenue (WBS for Unit 2)
Receipt Payment from PLN
Dr. Bank Incoming
Cr. AR (Customer PLN)
Dr. Bank Incoming
Cr. AR (Customer PLN)

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Revenue Posting (1/2) Oil and Gas

FI manual invoice must be flowed to accounts receivable sub-ledger account
for settlement purpose
VAT Re-imbursement invoice (billings) will be printed out of SAP
Trade billing is still produced manually outside the SAP due to its complexity.
Payment made to the Wayang Windu not in full amount will be entered using
Post with Clearing with Partial Payment, not residual payment.
For XXXX Geothermal (Wayang Windu) Ltd, the billing items consist of:
energy sales invoice unit 1 and energy sales invoice unit 2 which billed to PLN
for electricity transaction per month.

54

Revenue Posting (2/2) Oil and Gas

The following billing items apply for the Company:
1

Oil

Gas

LPG

Others

- Cost Recovery

- DMO

- Share Oil

- Unrecovered Cost

- FTP Share Oil

- Other Adjustment

- Price Lifting Variance

- Prior Year Over / (Under) Lift

- Provisional Over / (Under) Lift

- Unpumpable Crude Oil in FPSO

Kakap Natuna (Gain/Loss)
- Excess Gas Incremental Pricing

- Shortfall Gas Deficit Pricing

Trade Billing

Reimbursement

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Incoming Payment

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Over/Under Lifting
GL account named as Over/Under Lifting is created and set as Customer
reconciliation account.
All postings related to over/under lifting case must be posted to this
customer account.
No tax entries are applied for billing transactions in the Company. The
revenue is posted using document type DR.

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Over/Under Lifting Posting

Accounting entry example amount
Oil Under Lifting Journal February:
Dr. Manual Trade Debtor Crude Oil
Cr. Oil Sales

$1,000
$1,000

Oil Over Lifting Journal March:

Dr Oil Sales

$2,800

Cr Manual Trade Debtor Crude Oil

Cr Other Sundry Accruals (Oil Overlift Payable)

$2,200
$ 600

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Interest for Late Payment

Gas/Condensate Sales Customers that are not able to pay on the due date
are charged an interest for late payment.
This interest rate will be dependent on the terms of the contract and will be
calculated manually outside the SAP system.
A billing for this interest charge will be sent to the customer separate from
the actual invoice.

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Cash Call
The company pays the cash call request from the Companys partner
(usually called Cash Call Advance).
Partners are defined as customers and the transaction is post in FI-A/R.
Once recorded in account receivables, these items will be monitored and
treated like all other A/R open items.
Postings for Cash Call transactions are using special G/L transactions.

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Cash Call Posting

Accounting entry for Cash Call Request in gross company code
Dr (09) Cash Call Advance
Cr (19) Cash Call Request
Accounting entry for Incoming Payment in gross company code
Dr (40) Bank Incoming Clearing
Cr (19) Cash Call Advance

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Employee Advance
Cash advance will use the Travel Management module.
For employee related transactions, employee will be set to a designated
vendor for employee (account A/P Non Trade Employee).
Advance & Expense with max amount 10,000,000 is paid using petty cash.

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Employee Cash Advance Posting (1/2)

Posting travel request (cash advances)
Dr Employee Cash Advance
Cr Vendor Employee (A/P Non Trade Employee)
Posting travel request payment
Dr Vendor Employee (A/P Non Trade Employee)
Cr Bank Outgoing Clearing
Settlement due to employee
Dr Expense
Cr Employee Cash Advance
Cr Vendor Employee (A/P Non Trade Employee)

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Employee Cash Advance Posting (2/2)

Posting due to employee payment by Treasury
Dr Vendor Employee (A/P Non Trade Employee)
Cr Bank Outgoing Clearing
Settlement due to company
Dr Expense
Dr Vendor Employee (A/P Non Trade Employee)
Cr Employee Cash Advance
Posting due to company by Treasury
Dr Bank Incoming Clearing
Cr Vendor Employee (A/P Non Trade Employee)

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Employee Loan
Posting of loan amortisation will be automated from HR module
Detail of outstanding balance is in HR module as well

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Employee Loan Posting (1/2)

Accounting entry for Loan Taken
Emergency Loan:
Dr Employee Loan
Cr Vendor Employee (A/P Non Trade Employee)
Housing Loan:
Dr Housing Loan
Cr Vendor Employee (A/P Non Trade Employee)
Car Loan:
Dr Employee Loan
Cr Vendor Employee (A/P Non Trade Employee)

66

Employee Loan Posting (2/2)

Accounting entry for loan amortization and payment of monthly
salary and wages
Emergency Loan:
Dr Salary & wages
Cr Employee Loan
Cr Cash
Housing Loan:
Dr Salary & wages
Cr Housing Loan
Cr Cash
Car Loan:
Dr Salary & wages
Cr Employee Loan
Cr Cash

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Incoming Payment

Manual Billing / Enter billing in system

ACCOUNTS RECEIVABLE
Incoming
Payments

Select
Open Items

Enter Partial
or Full
Payment

Update
Exchange
Differences

Update
Processed
Payments

General
Ledger

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Incoming Payment
Incoming payments in the Company could be in the form of:
Incoming payments from customer, including cash call incoming payment.
Reimbursement for employee advance
Tax reimbursement from BP Migas
Intercompany settlement
Receipts from customers will be cleared manually according to the invoice numbers.
The Clearing of Open Items process involves selecting the line items to be cleared.
Upon selection of open items, the system checks whether the amount has been fully
cleared (unless tolerated discrepancy amount is defined in the configuration) before
allowing users to save the document.
Payment methods for AR are I Incoming Payment Transfer

What is Clearing?
Clearing is process of converting open items to cleared items
It matches payment with Vendor invoice
It matches Vendor down payment with invoice

Two ways to clear an account

Post with clearing
Clear Customer account (Manual Purge)

Clearing can be done

Manually
Automatically

Posting payments with clearing Document

(Manual Purge)

Document header:
document type, document
date, etc
Bank data: G/L account,
amount, profit centre, etc
Account selection:
account number, special
G/L account, etc

Invoice1
Invoice2
Invoice3
Invoice4
Amount entered
Amount assigned
Difference

1500
1000
2500
500

1. Clearing document is generated

2. The items are flagged as cleared
3. Clearing document no & date is entered against the
items.

Reset Cleared Items

You can reset clearing transactions for individual documents.
When clearing is reset, the clearing data is removed from the
line items (and the reversal data, where it existed, is removed
from the document header). The document changes are
logged and can be displayed in the change documents.
Reversal Data

Reversing Document Entries

All document entries entered are permanently stored; however, SAP allows to
reverse posted entries
A reversed entry creates a new document with opposite postings; no
information is deleted
It is not possible to reverse document that are already reversed
It is possible to reverse in the same period or a future period
In case of cleared items, reset of Cleared items has to be carried out before
reversal

Over/Under Payment
Under Payment
Under payment (residual item) results when a payment is made for less than the
actual amount outstanding
The original open item is cleared and the new open item is posted by the system

Over Payment
The difference will be posted into the customers account without
application to any other invoices
Keep for application of future invoices, or refunded back to customers

Account Receivable Report

FBL5N Customer Line Item
S_ALR_87012168 - Customer Report - Due Date Analysis for Open Item
S_ALR_87012169 - Customer Report - Account Balance
S_ALR_87012198 - Customer Report - Cleared Open Item

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Training Agenda
3. Account Receivable
3.1 Basic Concept and Process Flow
3.2 Transaction and Business Process in SAP
3.3 Demo
3.4 Exercise
3.5 Question & Answer Session

76

Demo 1 Display Customer Master

Menu Path: SAP Menu >
Financial Accounting > Accounts
Receivable > Master Records >
Display
T-Code FD03

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Demo 2 Park Customer Invoice

Menu Path: SAP Menu >
Accounting > Financial
Accounting > Account
Receivable > Document Parking
> Park/Edit Invoice

T-Code FV70

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Demo 3 Parked Intercompany Revenue & Expense

Menu Path: None
T-Code FBV1

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Demo 4 Park Customer Credit Memo

Menu Path: SAP Menu >
Accounting > Financial
Accounting > Account
Receivable > Document Entry >
Document Parking > Park/Edit
Credit Memo
T-Code FV75

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Demo 5 Post Parking Document

Menu Path: SAP Menu >
Accounting > Financial
Accounting > General Ledger >
Document > Parked Documents
> Post/Delete
T-Code FBV0

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Demo 5 Display Customer Line Item

Menu Path: SAP Menu >
Logistic > Sales & Distribution >
Credit Management > Item >
Display/Change

T-Code FBL5N

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Training Agenda
3. Account Receivable
3.1 Basic Concept and Process Flow
3.2 Transaction and Business Process in SAP
3.3 Demo
3.4 Exercise
3.5 Question & Answer Session

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Exercise
Please use your Exercise Book as a reference.
TIME : 3 Hours

84

Exercise
Exercise 1 : Display Customer Master Data
Exercise 2 : Park Customer Invoice
Exercise 3 : Post of Parked Customer Invoice
Exercise 4 : Park Intercompany Revenue & Expense
Exercise 5 : Post of Parked Intercompany Revenue & Expense
Exercise 6 : Park Employee Loan
Exercise 7 : Post of Parked Employee Loan Document
Exercise 8 : Park Customer Credit Memo
Exercise 9 : Post Customer Credit Memo
Exercise 10 : Display Customer Line Item
Exercise 11 : Customer Report Due Date Analysis for Open Item
Exercise 12 : Customer Report Account Balance
Exercise 13 : Customer Reports Cleared Open Item

85

Training Agenda
3. Account Receivable
3.1 Basic Concept and Process Flow
3.2 Transaction and Business Process in SAP
3.3 Demo
3.4 Exercise
3.5 Question & Answer Session

86

Question & Answer Session

87

Training Agenda
1. Preface
2. Curriculum
3. Account Receivable
4. Summary
5. Evaluation

88

Summary
Revisit Objectives:
At the end of this course, participants are expected to:
Understand SAP Account Receivable concept and process in XXXX which cover:
Objects and relationships in Account Receivable
Customer Master Data Maintenance
Document Type Introduction
Revenue Posting
Interest For Late Payment
Cash Call
Employee Advance
Employee Loan
Incoming Payment
Document Reversal
Special G/L Transactions
Account Receivable Reports
Account Receivable Reports

Understand how to do Account Receivable transactions in SAP system

89

Training Agenda
1. Preface
2. Curriculum
3. Account Receivable
4. Summary
5. Evaluation

90

Evaluation

Please open your Evaluation Sheet.

Answer each question on the sheet.

TIME : 15 Minutes

91

THANK YOU
5. Evaluation

92