Welcome to another edition of the Efficient eLearning S A P training series. This video is
S A P Accounts Payable - Transaction FB60 - Post Vendor Invoice. And here's a list of our topics.
First up we'll confirm where transaction code FB60 fits in the procure-to-pay process
followed by an explanation of the difference between a non-PO invoice
and an invoice referencing a purchase order.
Then it's on to the practical component of the
video - posting a non-PO invoice using transaction FB60 in S A P.
Once the invoice is posted we'll then analyze the vendor line item display (Transaction FBL1N).
Let's begin with where transaction FB60 fits in the procure-to-pay process.
It's worth noting at this point that a non-PO invoice does not reference a purchase order so the
procurement steps in the procure to pay process (create purchase requisition, approve purchase
requisition, convert requisition to purchase order and post goods receipt) are not relevant.
Transaction FB60 sits within the "Post Vendor
Invoice" step and is completed by the accounts payable department.
Okay, so we've established where transaction FB60 fits in the procure procure-to-pay process.
Now let's discuss the difference between a
non-PO invoice and an invoice referencing a purchase order.
Here's the two documents side by side. Visually, the only real difference is the purchase order
field. As you would expect, for a non-PO invoice, this field is blank. Conversely, for an invoice
referencing a purchase order, the field is populated with the relevant purchase order number.
So, why do some invoices reference a purchase order and others don't? Some organizations have
a strict policy - all invoices must reference a purchase order or they cannot be processed.
But, typically, most organizations will require the majority of invoices to reference a purchase
order with some limited exceptions. In this fictitious company example invoices for mobile
phone plan costs are a permitted exception (that is, invoices don't require a purchase order).
However, the purchase of mobile phone handsets still requires a purchase order.
In this video the focus is on posting a non-PO invoice
so we can discard the invoice referencing a purchase order.
Now that we have our invoice we can process it in S A P using transaction FB60.
When processing accounts payable invoices I tend to display the invoice on the left
and the S A P screen to the right.
If you're new to S A P it's worth noting where transaction FB60
resides in the S A P standard menu. Start with the "Accounting" folder
then "Financial Accounting",
"Accounts Payable" and "Document Entry".
Now, you can simply double-click on this entry to open the transaction. However, as I'm going
to be using this transaction frequently, I'll create a favorite for the transaction. To create
a favorite for the transaction right-click on the entry and choose "Add to Favorites".
I'm not happy with the standard description for the favorite so
I'll right-click on the entry and choose "Change Favorite".
I can now change the description.
I'll rename the entry "Post Non-PO Invoice" and then click "Continue".
I can now double-click on this favorite to open the transaction.
Always make note of the company code. If the company code is not correct you
can switch company code using this button on the application toolbar.
In this example the company code is correct so there's no need to change it.
The first field we need to populate is the "Vendor" field.
If you know the vendor code you can simply type it in this field.
However, most users won't know the vendor code and will have to search for the vendor.
Click in the "Vendor" field and click the drop-down list to the right.
This displays the matchcodes or search helps for the "Vendor" field.
The simplest way to find a vendor is to search using the "Name" field.
For example, if we type XYZ asterisk in the "Name" field and then click the
"Start Search" button the desired vendor (XYZ Mobile) is listed in the search
results.
I can now double-click on the vendor code to select it.
Next up is the "Invoice Date" field. This is the date on the vendor invoice.
Click in the "Invoice Date" field and enter the date referenced on the invoice.
The "Reference" field is the vendor's invoice number.
Click in the "Reference" field and type in the invoice number from the invoice.
The posting date is pre-populated with the current date. Normally this date
isn't changed unless you're given specific instructions by the accounting department.
For example, sometimes at month end an instruction is given to use the last date for the previous
month until the prior period is closed. In this example we'll simply leave it as the default.
The "Amount" field represents the gross amount of the invoice - so, the net amount plus tax.
Click in the "Amount" field and type in the total value from the invoice.
The "Tax Amount" field is the total tax value for the invoice.
Again, click in the "Tax Amount" field and type in the value from the invoice.
To the right of the "Tax Amount" field is the "Tax Code" field at invoice header level.
If all of the lines on the invoice have the same tax code you can enter that tax
code in this field and it will default to this value on all of the invoice line items below.
However, if not all of the line items have the same tax code it is best to
leave this tax code field at invoice header level blank.
In our example there's only one line item so we can input the tax code in this field.
Based on the values on the invoice and experience of
this type of purchase the tax code should be P1 (GST - 10 per cent).
Now press the key on the keyboard to validate the information entered.
Note the warning message at the bottom of the screen indicating the invoice is overdue.
Press again to bypass the warning message.
The invoice header details are now complete. We can now move on to the invoice line items.
This is where we enter the account assignment details for the invoice (in this example a cost
center and a general ledger account). Click in the "G/L Account" field. Again, if you know
the G/L Account code you can simply enter it manually here. However, in this example we'll
assume we have to search for the codes. Click the drop-down list to the right of the field.
In the "G/L Long Text" field type T E L asterisk and click the "Start Search"
button. Double-click on the G/L Account for telephone rental.
Now click in the "Amount" field and enter the net amount for the line item excluding tax.
And, finally, click in the "Cost Center" field and click the drop-down list to the right.
In the "Cost Center Short Text" field type admin asterisk and then click the "Start Search"
button.
Double-click on the "Administration" cost center.
Now press the key on the keyboard to validate the entered values.
As the balance of the invoice is zero, and there are no error messages,
we can now click the "Post" button to post the vendor invoice.
Note the message at the bottom of the screen with the invoice number.
Now the invoice has been posted we can view it on the vendor line item display (transaction FBL1N).
Let's now go to the folder where transaction FBL1N resides in the S A P standard menu.
Start with the "Accounting" folder.
Then choose "Financial Accounting",
"Accounts Payable"
and "Account". Again, you can simply double-click on this entry to open the transaction.
However, I'm going to right-click on the entry and choose "Add to Favorites".
Like the previous favorite I'm not happy with the standard description
so i'll right-click on the entry and choose "Change Favorite".
I can now change the description. I'll rename the entry "Vendor Line Item Report" and click
"Continue". I can now double-click on this favorite to open the transaction.
Some values have defaulted into the vendor account and company code fields.
The company code is correct but I'm not sure of the vendor code
so I'll click the drop-down list and search for the vendor once again.
Click in the "Name" field, type XYZ asterisk and click the "Start Search"
button.
Double-click on the desired entry.
We can now choose the line item selection. There are three choices: open items, cleared items
and all items. I'd like to see everything so I'm going to choose all items.
And in the type section I'm simply going to leave it as the default value
(normal items). I can now click the "Execute" button to run the report.
As you can see the document number that we posted previously in transaction FB60 now appears in
this report. So let's note some of the other fields in the report and explain their meaning.
This red status symbol means that it's an open item.
That means the invoice has been posted but it hasn't yet been paid.
The document type is KR. This is the standard document type
for invoices posted via transaction FB60.
The reference number and the document date are the invoice number
and invoice date from the vendor invoice.
The posting date was selected when we posted the invoice in transaction FB60.
The payment terms come from the vendor master record. These payment terms
represent net 30 days. So the invoice is due for payment 30 days after the document date.
And, as you can see, this is reflected in the net due date.
This is the net due date symbol and, as you can see, the invoice is overdue.
And the arrears after net due date field shows how many days the invoice is in arrears.
So the invoice has been due for payment for 10 days now.
We'll only touch briefly on the functionality within this report.
Later on in the video series we'll have a dedicated video just for this transaction
and, in that video, we'll go into the functionality in much more depth.
We've now covered all of the content for this video. Remember to give it a "Like"
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