Sep 29, 2023
•4 minute read
SAP AR AP
SAP Accounts Receivable and Accounts Payable (AR/AP) are the core sub-modules of SAP Financial Accounting (FI) that manage an organization’s financial relationships with customers and vendors. As finance teams automate and modernize invoice-to-cash and procure-to-pay processes, SAP AR/AP plays a central role in supporting operational efficiency and cash flow visibility. SAPinsider covers SAP AR/AP automation, payment processing, and integration with SAP S/4HANA Finance.
What is SAP AR AP?
SAP Accounts Receivable (FI-AR) manages all incoming customer invoices, credit management, customer payments and dunning processes. SAP Accounts Payable (FI-AP) manages vendor invoices, payment runs, cash discounts and vendor master data. Both modules feed into the SAP Universal Journal in SAP S/4HANA, providing a unified view of open items, aging reports and cash flow projections. SAP AR/AP integrates with procurement, sales and treasury processes to support end-to-end financial operations.
What use cases does SAP AR AP address?
- Invoice processing and automation: Organizations use SAP AP to automate vendor invoice capture and matching using optical character recognition (OCR), SAP Document and Reporting Compliance and machine learning-assisted three-way matching to reduce manual processing time.
- Customer credit and collections: SAP AR supports credit limit management, collections workflows and dispute resolution for customer accounts, enabling finance teams to reduce days sales outstanding (DSO) and improve cash conversion.
- Payment run management: SAP AP automates vendor payment runs with configurable payment methods, bank communication management and SAP Multi-Bank Connectivity to reduce payment errors and optimize cash outflows.
- Cash flow visibility: SAP AR/AP provides aging reports, liquidity forecasting inputs and real-time open item analysis to support treasury teams with daily cash positioning and short-term liquidity planning.
What does SAPinsider research say about SAP AR AP modernization?
SAPinsider research shows that accounts payable and receivable automation is a top investment priority for finance organizations, driven by the need to reduce manual processing, accelerate the close and improve working capital management. Organizations moving to SAP S/4HANA Finance report that unified ledger capabilities in the Universal Journal streamline AR/AP processes and reduce reconciliation effort. Explore SAP AR/AP resources and practitioner coverage at SAP AR AP.
Lessons from Birmingham City Council Failed Payments/ERP Implementation: A Closer Look at Vendor SelectionModernizing financial systems, particularly within SAP ecosystems, is not a trivial undertaking. A deep dive into the Birmingham City Council case highlights significant departures from software procurement best practices and a stark underestimation of the project's requisites by the supplier. A strategic approach to vendor selection is required to mitigate risks. By focusing on crucial questions and due diligence when engaging in technology implementation projects, finance teams can navigate the complexities and ensure the implementation of robust, tailored solutions. Crafting a detailed guide aids finance teams in asking the right questions and considering vital factors such as certification, consultant expertise, and ROI. This approach helps identify vendors who can deliver successful projects, implement customized technologies, and streamline operations to boost the bottom line.
xSuite Adds New Invoice Workflow on SAP BTPxSuite recently announced a new workflow solution for its core business, digital invoice processing, on the SAP Business Technology Platform. The solution offers standardized accounts payable processes on SAP BTP, transforming it into the foundation of SAP-based business processes.
Organizations that centralize and automate payment processing requirements are able to cut down on manual processes. This improves their efficiency while also reducing the opportunity for errors. This also offers a streamlined process that allows companies to standardize operations.
In this article, we will examine some of the key features and functionalities of xSuite’s new offering, as well as the different options that organizations have for leveraging the solution within their SAP S/4HANA deployments. We will also discuss how these solutions fit in with the overall SAP landscape as it pertains to digital transformation.
Jul 28, 2023
•2 minute read
Delego’s Five Steps To Get Customers To Pay Invoices on TimeNo matter how well-orchestrated an accounts receivable process is, sometimes customers will simply fail to finalize payments. Some customers may want to hold onto liquid capital as long as possible, others may have overworked finance teams who forget or misplace invoices, while some may just consider making payments a low priority.
Without the risk of serious consequences, some payments falling through the cracks is inevitable. Still, organizations should do everything they can to encourage timely payments. To help companies overcome these issues, the payments experts at Delego provided five tips that can help encourage customers to complete their payments on time.
In this article, we will break down the five tips. They are delivering invoices early, sending payment reminders, simplifying the process, addressing concerns, and improving accounts receivable processes. We will also break down each of these points, and offer suggestions as to how enterprises can accommodate these suggestions throughout their accounts receivable processes.
Jul 17, 2023
•2 minute read
IPS and CSI Edenred Announce New Name and Brand Image: Edenred PayFollowing its October 2022 acquisition by Edenred, IPS and CSI Edenred are now fully merged. The company will now be known as Edenred Pay going forward. In a press release, the company revealed its new name and brand image on its new corporate website.
“We are excited to announce our new name and brand image,” said Edenred Pay CEO Marc Divay. “This is a significant milestone for our company, and it reflects our commitment to B2B payments automation. We believe that our integrated B2B payments platform and new name and brand image will better position us to continue to grow and succeed in the years to come.”
The move reinforces the positioning of Edenred Pay as it moves beyond invoice-to-pay, offering its clients a wider array of services. As part of the press release, Edenred Pay pledged to “continue to offer its full suite of B2B payment solutions, and it will also be adding new solutions in the future.”
In this article, we will analyze some of the solutions users can expect from Edenpay going forward, as well as how SAPinsiders can expect to be affected.
Jul 7, 2023
•2 minute read
From Manual to Automated: The Benefits of Invoice Automation for Accounts PayableJoin us for an exciting webinar on the future of accounts payable invoice automation, presented in partnership with SAPinsider. AP teams face increased pressure to do more with less in today's fast-paced business world. Manual invoice processing can be time-consuming and error-prone, leading to delayed payments and strained vendor relationships. Recent SAPinsider benchmark research reveals that 76% of SAPinsiders fail to digitize paper invoices, illustrating why manual work and processes remains a top driver shaping accounts payable automation strategies and investments among SAP organizations.
Jun 16, 2023
•1 minute read
AP Automation – What, Why and How?Accounts Payable is one of the most important aspects of any SAP organization. Ensuring that suppliers are paid on time keeps the business running smoothly. Yet many companies are still running this crucial part of the business with too many manual touchpoints. Each touchpoint opens the company up to human error. It can also be difficult for people to manage the different kinds of invoices, like paper invoices, EDI invoices, invoices to dedicated email box, fax, and more.
To help address these issues, SAPinsider expert Chanda Verma will share her tips and key considerations for companies looking to enact AP automation. This includes how to build a business case for AP automation, how to get started with the solution, and how to find the solution provider that best meets the needs of your organization.
May 9, 2023
•4 minute read
How EMEA Organizations Are Leveraging Automation to Improve AP Invoice Management ProcessesSurvey respondents operating in EMEA facing challenges with manual work and manual processes across AP invoice management are prioritizing a move to SAP S/4HANA as an opportunity to transform AP functions at their organizations. This represents the leading driver for EMEA respondents regarding their approach to automating AP invoice management.
Feb 23, 2023
•1 minute read
Automating AP Invoice Management North America DerivativeIn the full benchmark report, most SAP organizations identified insufficient automation leading to manual work and manual processes as the primary factor affecting their strategic approaches to automating AP processes. Similarly, this strategic priority aligned with nearly a third (32%) of survey respondents from North American-based organizations as the top driver of AP process automation, starting with AP invoice management.
Feb 22, 2023
•1 minute read
Automating AP Invoice Management Research Webinar On-DemandThis report explores the need for SAPinsider organizations to consider automating AP processes to save time, reduce operational costs associated with manual labor, and minimize human errors that result from repetitive or complex tasks. Our findings show that most survey respondents (76%) do not digitize incoming paper invoices, while eight in ten (80%) survey respondents reported an average throughout time for incoming invoices exceeding 14 days. By utilizing strategies for automating AP invoice management, organizations can optimize their entire AP invoicing process, gain full compliance with global regulations, and improve cash flow.
Feb 16, 2023
•2 minute read
Top Three 2023 Topics for Your Procurement and AP TeamsFinance departments are under constant pressure to make their processes both more efficient and more compliant. At the same time, they deal with challenges such as skills shortages, disrupted supply chains, and increasing cybersecurity risk. In this webinar, we will examine what contribution Procurement and AP teams can make to tackle these challenges and increase resilience in finance departments. Explore how processes in these teams can become more efficient, flexible, and user-friendly, and what technological trends support companies in achieving this.
Join us to hear from the President & CEO of Xsuite, Danny Schaarmann, as he sheds light on the three most important technology trends to reach these goals in Procurement and AP teams – artificial intelligence in finance, international e-voicing initiatives, and digital vendor communication.
Session Takeaways:
Understand the relevance of AI for AP processes.
Identify possibilities to smoothen vendor onboarding and communications.
Build a timeline to cope with international e-invoicing requirements.
Feb 8, 2023
•1 minute read
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