May 11, 2021
•1 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.
The four indispensable FI-AP tips and tricks every SAP customer needs to knowMake your FI-AP processes run more efficiently and help your users be more productive with 4 indispensable tips and tricks. Understand your choices for using special G/L indicators. Learn the differences between internal and external vendor GR/IR accounts and learn how to pick the right option that best reflects your business situation. You will
- Get practical advice for tracing open items in an effective and rapid manner
- Find out how to use Special G/L indicators effectively
- Walk through a step-by-step process for segregating internal & external Goods Receipts (GR/IR account)
- Learn a little used trick to avoid the annoying fiscal year popup when double clicking on clearing documents
How BORUSAN CAT automated incoming invoice processesManaging incoming invoices is generally a complicated process for the companies. Invoice approval/rejection process must be handled by the cooperation of the relevant business units who procured the service/product. Printed invoices has the risk of getting lost. Invoices should be recorded to the SAP ERP system on-time and error-free. By attending this session you will get an understanding of:
- How an incoming invoice portal can be developed to cover all the approval/rejection and automatic ERP system recording processes
- How OCR Technologies can be utilized so that printed invoices can be converted to e-invoices with all the metadata included
- Document Management System Opentext utilization to categorize and store all the incoming invoices in a single storage location
Jan 19, 2021
•1 minute read
Vendor Document Automation for Accounts Payable ProcessesManaging accounts payable and vendor invoice processing can be streamlined by applying automation. Reductions in human error, faster invoice processing times, and decreased labor costs are just some of the benefits that can be gained by using vendor document automation (VDA) software, which is offered as an add-on by many SAP certified suppliers.
In this Q&A, discover important facts about the key components of VDA, and a listing of vendors in this space. You will learn:
- The different components offered by VDA products and how these components can help you streamline processes;
- Efficiencies that can be gained by using VDA software and things to consider when implementing; and
- VDA software vendors recommended by the author.
Oct 14, 2020
•5 minute read
5 KPIs You Should Track & Share Within Your OrganizationCreating a highly efficient and effective AR process requires an alignment of all the parties involved. That’s why getting instant access to the most relevant KPIs is so invaluable—but which KPIs will provide accurate insight into your global AR performance? In this eBook, you’ll discover which figures and data will provide the most benefit for […]
Feb 26, 2020
•1 minute read
How SAP Shops Can Mitigate the Risks of Accounts Payable ComplianceAccounts payable (AP) automation is supposed to save SAP customers money, but developments in digital tax may well make it a source of penalties and supply chain interruptions. With tax authorities all over the world seeking to increase revenues and close tax gaps, AP is becoming a new target for audits. Many SAP customers probably […]
Apr 17, 2019
•7 minute read
Financials: Case study: How Great-West Financial optimizes its accounts payable processes with limited purchasing integrationDiscover how Great-West Financial optimized its accounts payable processes. FIN2017_Topping_Casestudyhowgreatwest Susan Topping If you have comments about this article or publication, or would like to submit an article idea, please contact the editor.
Mar 6, 2019
•1 minute read
Financials: Case study: How CF Industries doubled credit and A/R team productivity with SAP receivables management and native SAP automationLearn how CF Industries lowered credit risk exposure and days sales outstanding by doubling the productivity of credit and A/R teams. FIN2017_Flemmer_Casestudyhowcfindustries Amanda Flemmer If you have comments about this article or publication, or would like to submit an article idea, please contact the editor.
Mar 6, 2019
•1 minute read
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