This document provides an overview of key functions in the accounts receivable module in SAP, including: 1) Editing options and defaults that can be set for open item processing and credit management. 2) Customer line item management and open item management, including displaying line items and balances. 3) Processing open items by clearing customers, posting with clearing, or posting incoming payments manually. 4) Handling bank returned payments and resetting cleared items. 5) Posting transactions without clearing, for transfers or other receivables.

4. Order to Cash Process Order Placed Via Phone Mail, Fax Order Processed Post Goods Issued Accounting Document AR Credit Review Delivery Creates Billing Invoice Payment Received Collections Cleared Order Released Order Blocked Credit dept. Reviews Order Refer to Credit Management Procedures

8. Editing Options & Defaults (FB00)

15. Display Customer Line Items (FBL5N) Double click on the line item to display the document.

23. Payment Application Process Apply to open items Apply partial payment Balance handled? Apply a full payment Apply payment with difference reason code specifying overpayment Refund? Payment amount Item cleared after appropriate resolution (cr. memo / write-off) Customer line item cleared Item cleared when all payments received and payment is due Payment application start Payment amount is greater than line item Payment amount is less than amount of line item No Yes Change reason code (triggers AP payment) AP payment sent via AR check run Payment equals line item amount Customer makes additional payment Deduction resolution required

24. Post Incoming Payments (F-28) Customer number GL account number could be the actual cash account or a holding account Example: selecting open items by invoice number Additional Selections helps to limit the open items presented

25. Post Incoming Payments – Partial Payment Overview of customer open items after partial payment

26. Residual payment amount Post Incoming Payments – Residual Payment Reason code Note: With residual payment, original invoice will be removed from open items list and new item for residual amount will be created

27. Manage Bank Return of Customer Payment Customer payment returned Open items on account? Transfer without Clearing F-21 and change doc type to DZ Post outgoing Payments F-31 Payment amount debited Credit dept. will pursue customer payment No Yes

31. Questions and Answers