Managing Accounts Payable

After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Describe relevant data and functions in Accounts Payable
  • Explain the integration with General Ledger Accounting

Current Process Step

Let’ start with the next Business Process Step within Record-to-Report processing: Manage Accounts Payable.

The current process step is highlighted in the overview below:

Accounts Payable Introduction

In this lesson, we will introduce the concept of the business partner as central master data in Accounts Payable. You will see how the business partner master data is structured and how to define it as a vendor for the accounts payable department of the Bike Company.

In addition to creating a business partner, we test the posting of incoming invoices in Financial Accounting. Reporting is also used to track the integration with Financial Accounting and Management Accounting.

As we already learned in Lesson 2 of this unit, Accounts Payable records and administers accounting data for each individual vendor. As soon as we have accounting-relevant transactions, such as incoming invoices or outgoing payments in relation to a vendor, an account (master data) is needed in Accounts Payable.

Business Scenario

The Bike Company has suppliers that deliver goods and services for multiple company codes. The Accounts Payable department asks whether vendor master data must be defined separately for each company code.

Business Partner

The master data of vendors (this is the term used in Accounts Payable) is administered by the business partner in SAP S/4HANA. The business partner allows you to centrally maintain master data for different SAP solutions in one place.

The business partner data that is relevant for Accounts Payable is, therefore, subdivided into the following two areas:

  • General data is valid for a single client. General data includes data such as the vendor’s address, control data, bank details, and contact persons.

  • Financial Accounting data is maintained at the company code level. Company code data includes data such as the link to the General Ledger Accounting, information for correspondence, and the payment methods for payment transactions.

Because the general data is maintained at client level, it is automatically available to all company codes (and other SAP solutions). Therefore, there is no need to define them separately for each company code.

In the company code views, each company code can then maintain its specific Financial Accounting data, such as VAT information or payment methods (for example, a bank transfer or check).

Business Partner (BP) Role:

When you define a new business partner, you must assign a predefined business partner role. The business partner role provides the master data fields for input for the corresponding task in the SAP system. To be able to maintain data that is specific to Financial Accounting for Accounts Payable at company code level, the FI Vendor role is required.

If this vendor is also used as a supplier in purchasing, you will extend an existing business partner in connection with the business partner role provided for this (Business Partner role Supplier). You will learn more about this business partner role in the Source-to-Pay unit in this training.

Select the FI vendor role, to learn more about role-related data. Do not forget to check the General Business Partner data by selecting the corresponding area. Please note, that the general data has to be provided for each Business Partner Role. Further roles will be unlocked in the course of the training.

How to Create a Supplier Business Partner


Vendor Invoice

In most cases, when making any purchase, the Bike Company has a strict procurement policy that requires the procurement department to manage, or at least be made aware of, all purchases. 

In predefined, exceptional cases it is allowed to order office supplies without involving the procurement department. For example, when the office printer requires toner unexpectedly and we must purchase new cartridges from the office supply shop next to our office.  

Post Vendor Invoices

The following video shows the initial value flow when posting a vendor invoice directly in the Accounts Payable.

How to Post and Analyze a Vendor Invoice

You are now well prepared to see this business scenario in the system.

Manual Outgoing Payments

New Message

You’ve received a new message, please check your notifications.


You will learn more about the payment program in the Source-to-Pay unit.

Posting Outgoing Payments Manually

Please watch the video below, to learn more about clearing a vendor invoice.

How to Post a Manual Outgoing Payment

The following system demonstration shows the manual clearing of a vendor invoice in Accounts Payable in connection with the value flow into the General Ledger.

Log in to track your progress & complete quizzes