Explaining Supplier Master Data Fields relevant for Payables Management

Jennifer is ready to review now the supplier settings at the company code level.

In addition to the business partner's general data, each company using it as a supplier has been declared under the corresponding FI supplier role. At this level, it is possible to define the settings of this supplier at company code level.

Under the company code, we key find the key settings grouped in the Finance tab:

• Reconciliation account: This is the G/L account representing the Accounts payable subledger in the Balance Sheet.
• Payment terms: This will be automatically defaulted on the supplier invoices generated by the accounting department. It can then be modified.
• Check double invoice: SAP will issue an alert whenever identical invoices are entered.
• Credit memo payment terms: This will be defaulted automatically to credit memos.
• Payment methods: Defines what payment methods are accepted by the supplier.
• Payment block: This is used to block any payment to the supplier.
• Alternative payee: These payments will be addressed to this alternative payee.

Jennifer can now summarize the supplier master data at the company code level as follows:

Jennifer is particularly interested on the functionality to check for double invoices in SAP S/4HANA.

If this option is activated at a supplier master record level, the system will check for duplicated invoices of that supplier. Each new invoice will be compared against the invoices already existing in the database by matching the following fields:

• Reference document number
• Company Code
• Supplier
• Currency
• Document Date

If the Reference document number field is left empty, the system will additionally match the Amount in document currency.

When a duplicated entry is detected, the system will generate a Warning or an Error message, depending on the configuration implemented by each company. The user has then to validate the Warning or to correct the data indicated in the Error message in order to be allowed to save the invoice.

The possibility of adding an alternative payee to a supplier master record seems very useful to Jennifer. Let’s find out more.

In some cases, a supplier may define an alternative payee as the recipient of payments processed through the automatic payment program. This could happen when a local branch of an organization provides services for better reactivity, but all payments must be made to their head office using a bank transfer.

To set this up in SAP S/4HANA, both the local branch and the head office should be created as business partners, with the head office's bank account details also provided. Then, in the local branch's master record, the alternative payee field should be completed with the head office's business partner number. As a result, when the local branch's open invoices are processed for payment by the automatic payment program, the funds will be transferred to the head office's bank account.

It is possible, if authorized on a supplier's master record, to allow the entering of payment details (address and bank information) directly on each of its documents during manual entry. However, due to the potential impact on security, this option should be used with caution.

Additionally, a list of alternative payees can be specified in the supplier master record from which the user can choose during document entry. This limits the risks of error or misuse.

Let’s have a look to the alternative payee indicator in the system.