Working with Business Partners and Invoices

Objectives

After completing this lesson, you will be able to:

  • Create a vendor master record.
  • Post a vendor invoice in FI.

Vendor Master Record — Business Partner

Any company that wishes to do business with a specific vendor has to create a company code segment. The company code data contains information such as the reconciliation account, terms of payment, payment methods, dunning data, or correspondence settings. You can also maintain settings for posting blocks.

Document Entry View for Accounting Document

Document Split in the General Ledger View

Note

The layout or display variant of the document sorts segments with subtotals in ascending order in the Segment column. 

You can specify in Customizing that the system needs to complete the missing entries automatically. The correct amount is shown in the figure, Document Split in the General Ledger View.

You activate document splitting to ensure the segment characteristic splits uniformly. Systematic segmentation means that each document has a zero balance for the entity in question.

There are six lines in the document now. The vendor line item and the tax item are split across the two (segments A and B). The balance for each segment is zero. You can create the balance sheet and profit and loss (P&L) statement in full, and the system balances the balance sheet in the background. The figure also shows how the accounts payable and the tax items inherit the segment entity in the document.

Document splitting reduces the time and effort the user spends entering documents. Entering six account assignment items would be time consuming.

Customer invoices that distribute revenues among various entities are handled in the same way.

Payment Process

Create a Business Partner and an FI Vendor

Enter a Vendor Invoice with Document Splitting

Post a Manual Outgoing Payment with Check Printing

Display a Vendor Account Balance

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