OTC900 en V0 01 AR Entry and Processing v2

AR Entry & Processing
Workstream: General
Course Code: OTC900
Revision: 0
Instructor Name:
Before you review this course, please

read this slide!
This is the storyboard that will form the basis of this course. It is now ready for first draft review by you the
content owner.
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Does this adhere to the approved HLDD?

Is the Mach 1 specific detail captured?
Does it represent the process flow in the right order?
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Are there any transactions missing or no longer required to be taught?
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Caterpillar: Confidential Green
Page 2
Course Objectives
Upon completing this course, you should be able to:
Provide an overview of Accounts Receivable (AR)

Display/change AR data
Process invoices
Process credit memos
Perform credit management
Manage incoming payments
Process lockbox and bank statements
Calculate interest
Perform period-close activities
Page 3
What is Mach 1?
The Mach 1 program will drive business transformation with simplified
processes enabling Vision 2020, Caterpillar Production System and Global
Finance, and Strategic Support Transformation
Key business processes within Order-to-Delivery (OTD) and Finance
areas will be aligned to maximize consistency and enterprise value within
the Mach 1 program
These key business processes include:
Accounts Payable (AP)

Accounts Receivable (A/R)
Supply Chain Management
Order Management
Page 4
What Does Mach 1 Stand For?

Mach 1
Represents Velocity
Mach is the measurement term for the speed of sound
Mach 1
Represents one team (Team Caterpillar)

Enabling one common set of best-in-class, end-to-end business processes
Working toward one integrated enterprise system
Driving the achievement of one corporate strategy (Vision 2020)
Page 5
What is Mach 1?
Business Transformation Underway
JWO CPS,
Simplification and
Mach 1 are joined
at the hip.
Simplify
Standardize
Mach 1
Sustain
Process + Systems
6 Sigma
Page 6
MACH 1 System
Landscape
Customers/
OEMs/Dealers/
Interactive/ Batch
MACH 1 Ops
Dealer Portal
Network
CAT Network
APO (SCM)
SCOPE
Other CAT
SAP
Systems
GRC-GTS
VERTEX
ECC
SD
MM
WM
PS
PP
EC
DIMP
(IS)
Legacy Systems
EDW
FI/CO
SEM - BI
Page 7
OTC Overview
Mach 1 Scope
Non-Mach 1Scope
Financial Planning and Forecasting

Delivery
Unconstrained Plan
Forecasts
Demand Mgmt
Supply Chain/
Materials Mgmt
S&OP
Transportation
(Inbound)
Shipment
Forecast / Authorization
ASN
Supplier
Capability
Customer
Invoice
Orders
Management
Customer
Order
Capacity
Planning
Manufacturing
Support
Finished Goods
Distribution
Constrained
Plan
Material
Handling
Shipment
Production
Execution
Transportation
(Outbound)
Source /
Contracts
New Product
Design
Order Status
Customer
Delivery
From Product Development

New Product
Design
Suppliers
Customers/ OEMs/ Dealers
To Product Support
Purchase Orders
Schedule
Procurement
Manufacturing
Engineering
Finished
Good
Receipt
A/R
Costing
A/P
Supplier Invoice
Order to Cash
Consolidations & Reporting & Tax
Record to Report
Internal Controls
Shareholders and External Reporting
Page 8
Mach 1 Integrated Process Views
Page 9
Order to Cash
Manage Sales Master
Data
Step
Process Order
Manage Outbound
Delivery
Generate Billing
Manage Accounts
Receivable
Definition
Manage Sales Master

Data
In order for a sales order to be created, the following master data is required: customer material master, pricing, and variant
configuration. Order management is responsible for the customer master, the sales view of the the material master and
pricing. The process covers the maintenance of this data
Process Order
This process covers the steps required to create a sales order. The process starts with receipt of a purchase order form the
customer for an engine, machine, work tool or component. A customer can be a dealer, OBM provider, Government, an
external customer. There are two primary order process scenarios: standard (make-to-order) and design-to-order (DTO). The
standard process supports Lane 1,2, and 3 products. DTO is Lane 4
Manage Outbound
Delivery
Outbound delivery is the process that initiates the activities on the shop floor for picking, packing and shipping of the sales
order line items. The process is initiated by the order management (OM) organization after ensuring that all delivery blocks
and any credit check issues have been resolved
Generate Billing
Once the shipment (post goods issue) has occurred, a billing document is created. From the billing document, the commercial
invoices and any inter-company invoices are created. Additional charges (i.e. freight, surcharges) not included on the sales
order or delivery document will be managed via credit/debit memos
Manage Accounts
Receivable
Process encompasses collections, credit management, issuance of miscellaneous invoicing and credit memos, dispute
management and various reporting / procedural processing such as issuance of statements and month end/year end closing
Page 10
Accounts Receivable
Mach 1
Representing Velocity.
The objectives of the Mach 1 Accounts Receivable module are:

Reduce cost per payment transactions
Reduce number of payment terms
Reduce receivable processes used
Page 11
Accounts Receivable a Sub-Ledger
SAP
FI
Accounts Receivable is the sub-ledger of Financial accounting

Page 12
Integral Part of Sales Management

Accounts Receivable (AR) is an integral part of sales management
It provides the data required for effective credit management, as well as
information important for the optimization of liquidity planning
AR records and
administers the accounting
data and entries related to
customers
Page 13
Range of Tools
Accounts Receivable
The AR system contains a range of tools

which can be used to monitor open items; for
example, account analysis, alarm reports, due
date lists and a flexible dunning program
Page 14
Key Terms Organization Structure

New Term
Description
GL Master
Master data which contains information about the GL accounts
Client
Very highest level org structure in SAP
Bank Master
Master data which contains information about the Bank Master
Customer master
Master data which contains information about the customer
Master data
Data records that are not frequently changed and remain in the database for a
long time
Plant
Receiving facility
Customer
Dealers, OEMs, Govt., Direct, Etc.
Credit Control Area
An organizational unit that represents the area where customer credit is

awarded and monitored
Credit Limit
Upper limit for the total receivables and the foreseeable receivables from the
Customer
Company code
Legal entity
Page 15
Key Terms Transactions

New Term
Description
Reconciliation
Account
Receivable accounts for customers
Sales Document
Sales related document
Billing Document
Invoice
Account Receivables
Document
Generic SAP term for example, a customer invoice
Accounting
Document
Generic SAP term used for a customer invoice
Page 16
Questions?
Page 17
Agenda
1. Introduction
2. Display/Change AR Data
3. Invoice Processing
4. Process Credit Memos
5. Credit Management
6. Manage Incoming Payments
7. Lockbox and Bank Statements

8. Calculate Interest
9. Period Close Activities
10. Summary
Page 18
Topic Objectives
Upon completing this topic, you should be able to:
Display Customer Balance
Display Customer Line Items
Display Customer Master Data
Change Customer Master Data
Page 19
Master Data Overview

Display/Change AR Master Data transactions fall within the purview of Maintain
AR Master Data. These transactions form the building block to enable posting of
documents. These functions also integrate with other SAP functions, notably
Customer Service and Sales
Purpose
To create new Customer
account master
To change existing Customer
account master with latest
information
To display Customer
account master
To block/unblock Customer
account master
What
It includes data necessary
to enable
posting of transactions and
documents into SAP
When
Ad-hoc as and when
business requirements
necessitate creation
or maintenance
of customer accounts.
Who
Local Customer Account
Master Administrator
Page 20
Facts About Customer Master Data

Customer Master Records are maintained in Sales & Distribution (SD) and
Financial Accounting (FI)
Account Receivables Data is grouped into three categories:
General data (Data maintained for Customers information)
Accounting data (Data maintained for Accounts related information)
Sales area data (Data maintained for Sales related information)
General data
Accounting data
Sales area data
This workshop focuses on General and Accounting Data; Credit Master

data will be part of Credit Management Workshop
Page 21
Categories of Customer Master Data

Accounting Data
General Data
(A Segment)
Sales Data
- Per Customers
Account
Central
Sales
-Per Sales Area
-Per company code

This Data is valid for every
company code at client level. It
includes :
Name
Address
Contact details
Bank account details
VAT Registration No.,
Etc.
This Data is maintained at

company code level per
Customer Account. It includes:
Reconciliation Account
Sort Key
Tolerance group
Payment Terms
Dunning Procedure, Etc.
This Data that is maintained for each

Sales Organization, Distribution
Channel and Division. It includes :
Customers Currency,
Inter Company terms
Pricing Procedure
Payment Terms
Shipping Data, Etc
Page 22
Customer Master Account Group

Customer or
One-Time Customer Status
Field selection
Account group
determines...
Type of number
assignment
Number
assignment interval
An account group defines the control functions for customer master record
maintenance
Every customer master is managed under an account group

Page 23
Customer Master Record Maintenance

SAP
Finance
Master Record Maintenance

Create, Change, Display
Customers
Customer
Master Record
Sales
Accounting
Central
Sales
Master
Record
Page 24
Agenda
2.1. Display Customer Balance
2.2. Display Customer Line Items
2.3. Display Customer Master Data
2.4. Change Customer Master Data
2.5. Lesson Summary
Page 25

Transaction FD10N is used to Display Customer Balance
Every time you post a document, the system automatically updates a
customer account and the relevant GL account (reconciliation account)
balance
The required fields for this transaction are:
Company Code
Customer
Fiscal Year
Page 26
Result of This Transaction

The result of this transaction covers Customer Account Balance
Analysis. The account balance displays:
Debit
Postings
The opening
balance (the
balance carried
forward from the
previous year)
The total of all

transactions
Credit
for each posting Postings
period,
broken down into debit
and credit postings
(transaction figures)
Page 27
Exercise: Display Customer Balance

Please reference the Document :
BPP5453_FIN_AR_FD10N_Display Customer
Balance
Page 28
Agenda
2.5. Lesson Summary
Page 29
Line Items
Line items are document items that were posted to a specific account. In
contrast to a document item, a line item only contains the information from
the document that is relevant from the account view
Parked
Items
Open Items
Line Items
that can be
displayed
Noted
Items
Customer
Accounts
Cleared
Items
G/L
Accounts
Line Items
for the
Account
Types
Page 30
Vendor
Accounts

Transaction FBL5N is used to Display Customer Line Items
Every time you post a customer document, the system automatically updates
the relevant Customer account and GL reconciliation account. You can
display documents posted to a particular account, parked documents, noted
items, and with special GL indicators
The report generated from this transaction covers Customer Account Line
Item Display. This report allows you to:
Create a dispute case from the line item
Document display, filter set up, layout set up, and existing layout selection
Export the line items in to a spread sheet
Line Items
Page 31
Exercise: Display Customer Line Items

BPP5452_FIN_AR_FBL5N_Customer Line
Items
Page 32
Agenda
2.5. Lesson Summary
Page 33
What is Customer Master Data?

Customer master records contain
information about the Customer
Account that controls how business
transactions are posted and managed
The customer master is necessary for

processing business transactions and
corresponding with customers
Information is shared between the

Accounting
and Sales Departments
Page 34

Transaction FD03 is used to Display Customer Master Data
This transaction describes how to display a customer master record for
accounting view. You can display any of the fields in a master record at a
later date, except for the account number and account group
In Accounts Receivable you can configure a customer account so that
postings are no longer made to that account.
Required Fields
Account Group
Company Code
After the changes have been made, the message in the Status bar indicates
that changes have been made
Changes have been made
Page 35
Exercise: Display Customer Master Data

BPP5425_FIN_AR_FD01-02-0305_CreateChange-Display-Block Cstmer- Ac
Page 36

Transaction FD04 is used to Change Customer Master Data
This transaction describes how to change a customer master record for
accounting view. You can change any of the fields in a master record at a
later date, except for the account number and account group
In Accounts Receivable you can change a customer account so that postings
are no longer made to that account. You have to change a customer account
before marking a customer master record for deletion
Required Fields
Account Group
Company Code
At the end of the transaction, the message in the Status bar indicates that
changes have been made
Changes have been made
Page 37
Exercise: Change Customer Master Data

BPP5425_FIN_AR_FD01-02-0305_CreateChange-Display-Block Cstmer- Ac
Page 38
Agenda
2.5. Lesson Summary
Page 39
Topic Objectives
You should now be able to:
Page 40
Questions?
Page 41
Agenda
1. Introduction

10. Summary
Page 42
Topic Objectives
Enter outgoing invoices
Park customer invoice
Change document line items
Post/delete parked invoices
Print miscellaneous invoices/credit memos
Page 43
Accounts Receivable Invoice Processing 1

AR Clerk
Customer invoice
request received
Check customer
existence
Determine If
valid customer
exists
Customer
master record
did not exist
Valid
Customer
exists
Manage sales
master data
Create Invoice
Customer
Master record
request completed
Document
parking
Invoice
document
parked
Page 44
Accounts Receivable Invoice Processing (contd)

AR
Supervisor
Notification
of released
document
Notification
of rejected invoice
document
Review invoice
document
Post Parked
document
Determine
Approval
decision
Invoice
document
approved
Invoice
document
rejected
Invoice
document
posted
Internal
documents
Release parked
Invoice
document
Notification of
Invoice document
rejection
Invoice
document
printed
Determine
method of
correspondence
Invoice
document
sent by EDI
Vertex
Determine
Disposition of
rejected invoice
document
Maintain
document
Delete parked
invoice
Invoice
document
updated
Parked
invoice document
deleted
Invoice
document
e-mailed
Page 45
Accounts Receivable Invoice Processing

Accounts Receivable invoice processing takes
into consideration both assets generated as a
result of sales of goods and services to external
customers as well as liabilities created with
movement of goods and services between internal
legal structures
Because of Caterpillars global presence and the
scope of the Mach 1 program, Accounts
Receivable invoice processing may occur in
multiple foreign currencies
All Accounts Receivable invoice processing within
the Mach 1 SAP solution will maintain the integrity
of Caterpillar statutory and consolidated reporting
Page 46
Sub-Processes of AR Invoice Processing

Sub-process 1:
Customer invoices &
debit / credit memos
created from
Sales and Distribution
within MACH I SAP
Sub-process 3:
Miscellaneous
invoicing
processing
within FI-AR
Sub-process 2:
Customer invoices &
debit / credit memos
passed manually
from external
invoicing sources
Sub-process 4:
Inter-company
Invoices
Page 47
Sub-process1: Customer Invoices within

MACH1 SAP
Sub-process 1:
Customer invoicing
and debit/credit
memos created from
Sales and Distribution
within MACH I SAP
Customer invoices will be created in SD

(sales and distribution) processes and
released to accounting
This process will include commercial,
DSUO and Accommodation invoicing
Accounts Receivable clerks will check for
errors (G/L accounts, posting dates, tax)
and communicate back to Order
Management (OM) team
After the errors are fixed, customer
invoices are available for further
processing (payments)
This process will also include debit and
credit memos created in SD and passed
into the Accounts Receivable module
Page 48
Sub-process 2: Customer Invoices from

External Invoicing Sources
Sub-process 2:
Customer invoices and
credit/debit memos
passed manually
from external
invoicing sources
Interfaces will be developed for

interfacing into SAP the following
customer invoices and credit memos
from the following external sources:
Credit claims into SAP system for
warranty claims. These claims will be
paid back to customers using SAP
system
Customer invoices and credit/debit
memos from SPM upon deployment of
CRM invoicing to external customers
Page 49
Sub-process 3: Miscellaneous Invoicing
Sub-process 3:
Miscellaneous
invoicing
and credit memo
processing
within FI-AR
Miscellaneous invoices will be created

in the area of FI-AR while utilizing
different templates
Templates will be developed based on
miscellaneous types
All miscellaneous invoices/credit
memos will be parked (temporally
posted) and need approval from AR
supervisor in order to be released and
made available for payments
Page 50
Sub-process 4: Inter-company Invoices
Sub-process 4:
Inter-company
Invoices
All inter-company process scenarios will also

be included in the interface from sales and
distribution with impact on the accounts
receivables invoice and debit/credit memo
function
Inter-company invoices scenarios:
Inter-company sale of prime products between
2 legal entities
Inter-company transfer of material between 2
legal entities
Inter-company sale of prime products between
3 legal entities
Inter-company sale of services between 2
Legal entities
Inter-company purchase of prime product for
stock 3 legal entities
Page 51
Agenda
3.1. Enter Outgoing Invoices
3.2. Park Customer Invoice
3.3. Change Document Line Items
3.4. Post/Delete Parked Invoice
3.5. Print Miscellaneous Invoice / Credit Memos
3.6. Lesson Summary
Page 52
Use of Entering Outgoing Invoices

The Entering Outgoing Invoices function is used to
enter incoming or outgoing invoices or credit
memos
The invoice entry Enjoy transaction is a single screen transaction. This means
that you can enter, hold, park, and post documents on one screen with a
minimum amount of entries
The single screen transactions are included in the area menus for Accounts
Receivable and Accounts Payable according to the business transaction
Page 53
Enter Outgoing Invoice

Transaction FB70 is used to Enter Outgoing Invoice
This transaction is normally used for posting customer invoices. However,
within Mach1, it will be used for parking invoices when a user does not have
enough data to post a document or a document requires additional review or
approval. The document can still be entered and kept in the system as an
incomplete document and can be edited and posted later
Company Code
Customer
Invoice Date
Posting Date
Currency
Amount
G/L Account
Tax Code
Tax Jurisdiction Code
Material
Page 54
Exercise: Enter Outgoing Invoice

BPP5429_FIN_AR_FB70_Enter Outgoing
Invoice
Page 55
Agenda
3.6. Lesson Summary
Page 56
Parking Documents
You can use document parking to enter and
store (park) incomplete documents in the SAP
System without carrying out extensive entry
checks
Generally, when documents are parked, data
(for example, transaction figures) are not
updated
Data from parked documents can however be
used for evaluations by the system. For
example, amounts from parked invoices can
be used for the advance return for tax on sales
and purchases. Using payment requests,
parked invoices can be paid punctually and
without loss of discount
Page 57
Park Customer Invoices

Transaction FV70 is used to Park Customer Invoices
A document is normally parked when a user does not have enough data to
post a document or a document requires additional review or approval. The
document can be still entered and kept in the system as an incomplete
document and can be edited and posted later.
Company Code
Customer
Invoice Date
Posting Date
Currency
Amount
G/L Account
Tax Code
Material
Page 58
Exercise: Park Customer Invoice

BPP5431_FIN_AR_FV70_Park Customer
invoices_BPP_Baseline.doc
Page 59
Agenda
3.6. Lesson Summary
Page 60
Change Parked Documents

You can change a parked document and complete it step by step
A large number of header and item fields can be changed during this
process, including the invoice amounts
You can make changes to:
Several documents
using a list
Individual
documents
Individual items and

other values via the
line items
Page 61
Change Document Line Items

Transaction FBV2 is used to Change Document Line Items
This transaction is used to make corrections to a parked document before it
is posted. The required fields for this transaction are:
Company Code
Customer
Document Date/Invoice Date
While changing
Document Line
Items, all fields other
than the Company
Code can be
changed
Posting Date
Amount
G/L Account
The internal system change rules governing document entry are not used in
document parking
Page 62
No Field Entries Required

No field entries are required in the List of Parked Documents screen
during this transaction. However, to expedite the list of parked
documents, the user may enter information in the fields provided to
narrow down the list to specific documents
The SAP user name of the operator is defaulted in the Entered by
field. This field may, however, be left blank or the user name may be
changed to search for parked documents created by a different user
At the end of the transaction, a message appears in the Status bar
indicating that the document was changed
Preliminary posted document 1600000033 1885 was changed
Page 63
Exercise: Change Document Line Items

BPP5871_FIN_AR_FBV2_Change Parked
Invoice_ Credit Memo
Documents_BPP_Baseline.doc
Page 64
Agenda
3.6. Lesson Summary
Page 65
Post Parked Documents
Using the standard transaction, you can post

parked documents individually or using a list
selection
If you post several parked documents using a list,
the system issues a list when you have finished. This list details which
documents were successfully posted
From this list, you can then carry out any necessary post-processing to
parked documents that could not be posted due to missing information such
as a cost accounting assignment
You can also create a batch input session to post the parked documents
Page 66
Key Features
The data in parked documents is
deleted when they are posted, a
document is written to the document
database, and the appropriate data,
(transaction figures and so on), is
updated. The number of the parked
document is transferred to the posted
document
Parked documents are always posted
by batch input or using Call
Transaction
You cannot reuse the document
number of a deleted parked
document
Page 67
Post/Delete Parked Invoice

Transaction FBV0 is used to Post/Delete Parked Invoice
It creates postings in Accounts Receivable Sub-Ledger and also updates the
GL Accounts
The only required field for this transaction is:
Company Code
The search process can be expedited by providing as much information as

possible. This information will deliver a focused result displaying exactly the
list of parked documents that is needed
When the document has been posted, a popup message will appear
indicating the same
Document 1600000032 was posted in company code 1885
Page 68
Exercise: Post/Delete Parked Invoice

BPP5870_FIN_AR_FBV0_Post- delete parked
documents
Page 69
Agenda
3.5. Print Miscellaneous Invoice/Credit Memos
3.6. Lesson Summary
Page 70
Print Miscellaneous Invoice/Credit Memo

Transaction F.62 is used to print miscellaneous Accounts Receivable (AR)
invoices. The required fields are:
Company Code
Document Number
Document Type
Correspondence
If the document numbers of the Miscellaneous AR invoices to be printed are

known, enter the information into the Document number fields
To create Miscellaneous AR Invoices, use Correspondence type 'ZAR19', to
create Credit Memos use Correspondence type ''ZAR11'
Page 71
Print Program: Document Extract Screen

In the Print Program: Document Extract screen, some messages will be
displayed. Ensure that there are no error messages indicated by a stop
sign or a red circle
Page 72
Exercise: Print Miscellaneous

Invoice/Credit Memo
BPP5839_FIN_AR_F_62_Print Miscellaneous
Invoice_Credit Memo_BPP_Baseline.doc
Page 73
Agenda
3.6. Lesson Summary
Page 74
Lesson Summary
Enter outgoing invoices
Park customer invoice
Post/delete parked invoices
Page 75
Questions?
Page 76
Agenda
1. Introduction

10. Summary
Page 77
Topic Objectives
Enter outgoing credit memos
Park credit memos
Post/delete parked credit memos
Page 78
Agenda
4.1. Enter Outgoing Credit Memos
4.2. Park Credit Memos
4.4. Post/Delete Parked Credit Memos
4.6. Lesson Summary
4.7. Knowledge Check
Page 79
Use of Entering Outgoing Credit Memos

The Entering Outgoing Credit Memos function is
used to enter incoming or outgoing invoices or
credit memos
The Credit Memo entry Enjoy transaction is a single screen transaction. This
means that you can enter, hold, park, and post documents on one screen with
a minimum amount of entries
The single screen transactions are included in the area menus for Accounts
Receivable and Accounts Payable according to the business transaction
Page 80
Enter Outgoing Credit Memos

Transaction FB75 is used to Enter outgoing Credit Memos
This transaction is normally used for posting Credit Memos. However, at
Caterpillar it will be used for parking Credit Memos when a user does not
have enough data to post a document or a document requires additional
review or approval. The document can still be entered and kept in the system
as an incomplete document and can be edited and posted later
Company Code
Customer
Invoice Date
Posting Date
Currency
Amount
G/L Account
Tax Code
Material
Page 81
Exercise: Enter Outgoing Credit Memos

BPP5430_FIN_AR_FB75_Enter Outgoing
Credit memos
Page 82
Agenda
4.6. Lesson Summary
Page 83
Parking Documents
You can use document parking to enter and
store (park) incomplete documents in the SAP
System without carrying out extensive entry
checks
Generally, when documents are parked, data
(for example, transaction figures) is not
updated
Data from parked documents can however be
used for evaluations by the system. For
example, amounts from parked invoices can
be used for the advance return for tax on sales
and purchases. Using payment requests,
parked invoices can be paid punctually and
without loss of discount
Page 84
Park Credit Memos

Transaction FV75 is used to Park Credit Memos
A document is normally parked when a user does not have enough data to
post a document or a document requires additional review or approval. The
document can be still entered and kept in the system as an incomplete
document and can be edited and posted later.
Company Code
Customer
Invoice Date
Posting Date
Currency
Amount
G/L Account
Tax Code
Material
Page 85
Exercise: Park Credit Memos

BPP5432_FIN_AR_FV75_Park Outgoing Credit
memos
Page 86
Agenda
4.6. Lesson Summary
Page 87
Change Document Line Items

Transaction FBV2 is used to Change Document Line Items
This transaction is used to make corrections to a parked before it is posted.
Company Code
Customer
Posting Date
Amount
G/L Account
While changing
Document Line
Items, all fields other
than the Company
Code can be
changed
Company Code
Customer
Posting Date
Amount
G/L Account
The internal system change rules governing document entry are not used in
document parking
Page 88
No Field Entries Required

No field entries are required in the List of Parked Documents screen
during this transaction. However, to expedite the list of parked
documents, the user may enter information in the fields provided to
narrow down the list to specific documents
The SAP user name of the operator is defaulted in the Entered by
field. This field may, however, may be left blank or the user name may
be changed to search for parked documents created by a different
user
At the end of the transaction, a message appears in the Status bar
indicating that the document was changed
Preliminary posted document 1600000033 1885 was changed
Page 89
Exercise: Change Document Line Items

BPP5871_FIN_AR_FBV2_Change Parked
Invoice/ Credit Memo Documents
Page 90
Agenda
4.6. Lesson Summary
Page 91
Post/Delete Parked Credit Memo

Transaction FBV0 is used to Post/Delete Parked Credit Memo
It creates postings in Accounts Receivable Sub-Ledger and also updates the
GL Accounts
The only required field for this transaction is:
Company Code
The search process can be expedited by providing as much information as

possible. This information will deliver a focused result displaying exactly the
list of parked documents that is needed
When the document has been posted, a popup message will appear
indicating the same
Page 92
Exercise: Post / Delete Parked Credit

Memo
BPP5870_FIN_AR_FBV0_Post- delete parked
documents
Page 93
Agenda
4.6. Lesson Summary
Page 94
Print Miscellaneous Invoice/Credit Memo

Transaction F.62 is used to print miscellaneous Accounts Receivable (AR)
Credit Memos. The required fields are:
Company Code
Document Number
Document Type
Correspondence
If the document numbers of the Miscellaneous AR Credit Memos to be

printed are known, enter the information into the Document number fields
To create Miscellaneous AR Credit Memos, use Correspondence type
'ZAR19', to create Credit Memos use Correspondence type ''ZAR11'
Page 95
Print Program: Document Extract Screen

In the Print Program: Document Extract screen, system messages will
be displayed. Ensure that there are no error messages indicated by a
stop sign or a red circle
Page 96
Exercise: Print Miscellaneous Invoice and

Credit Memo
BPP5839_FIN_AR_F.62_Print Miscellaneous
Invoice/Credit Memo
Page 97
Agenda
4.6. Lesson Summary
Page 98
Lesson Summary
Enter outgoing credit memos
Park credit memos
Post/delete parked credit memos
Page 99
Questions?
Page 100
Agenda
1. Introduction

10. Summary
Page 101
Topic Objectives
Display Customer Credit Management
Display Credit Management Brief Overview for a
customer credit account
Display the Credit Overview for a customer credit
account
Display an Early Warning List of critical customers
Reset the Customer Credit Limit
Block SD Document
Change the Customer Credit Status
Page 102
Credit Management (CM)

Credit management helps by minimizing
credit risk, which can be achieved by defining
a specific credit limit for its customers
The financial situation of a customer or group
of customers can be appraised, early warning
signals recognized, and decisions made
efficiently with reference to the credit
assignment
This is especially important for Caterpillar,
because of its international customer base,
coverage of business with customers existing
in financially unstable sectors or countries, or
trade with countries that are politically
unstable or adopt a restrictive exchange rate
policy
Page 103
Areas Covered by CM
Automated credit limit checks according to a range of criteria and
requirements
Automatic alert/block surrounding a customers critical credit
situation as early as order receipt processing starts
Notification to the relevant employees of customer critical

credit situations
Credit representatives will be enabled to check a customers credit
situation quickly and reliably, and, in line with the appropriate credit
policy, decide whether the customer should be granted credit
Page 104
Credit Control Area

Company
Code 1
An organizational unit that represents the area

where customer credit is awarded and
monitored
Company
Code 2
$$
Company
Code 6
Company
Code 3
Credit Control Area
Company
Code 5
According to Caterpillars requirements, credit

management will be centrally implemented.
This results in defining one Credit Control Area
for all the Caterpillars company codes
Company
Code 4
Credit control area currency will be the group currency as Caterpillar includes
company codes with different local currencies. The system converts the receivables
into the currency of the credit control area for credit management purposes
Page 105
Additional Credit Management Concepts

Credit Representative
Group
Risk Category
A risk category will be assigned to a
customer to classify customers according to
the risk they represent and to set off the
relevant checks
This risk category will form the base for
checks that the system should execute when
processing orders in SD.
A customer can be assigned to a credit

representative group for credit control
This credit representative group is
copied into the order and can be used
as a selection criterion for evaluations
and release functions
CCG
CRG
Customer Credit Group

Caterpillars needs will determine how to define groups of customers
The credit representative will use these groups to select blocked documents for
processing and to trigger reports for statistical analysis
Page 106
Monitoring Customers Credit

Post
Sales
Order
Sales
Order
Receipt
Credit Check
Release
Goods
Issue
Credit Check
Credit Limit Order Blocked
Credit Check
1st Check
2nd Check
3rd Check
After the receipt of a Sales

Order (SO), a credit limit
check will be performed
prior to its release
The second credit limit

check will be performed at
the time of goods delivery
The order will be blocked if
credit limit has been
exceeded
The Credit analyst will
follow the same procedure
to unblock the delivery
The third and final credit

limit check will be done at
the time of post good issue
(PGI)
Page 107
Agenda
5.1. Display Customer Credit Management
5.2. Credit Management Brief Overview
5.3. Credit Overview
5.4. Early Warning list
5.5. Reset Customer Credit Limit
5.6. Block SD Document
5.7. Change Customer Credit Status
5.8. Lesson Summary
Page 108
Displaying Credit Data

The system displays such details of
customers as the individual credit limit, the
existing total liabilities, and the credit limit
used (percentage)
The Day Sales Outstanding (DSO) figure is
also displayed. The DSO figure is an index
of the relationship between outstanding
receivables and sales achieved over a
specific time period
Existing total
liabilities
Day Sales
Outstanding (DSO)
Credit limit
CREDIT DATA
Receivables
from sales
Credit limit used

(percentage)
If the customers payment history has been

recorded or other internal specifications
made, this data is also displayed here
Sales values
Credit exposure
The system also displays receivables from

sales, sales values, and credit exposure
Customers
payment history
Page 109

Transaction FD33 is used to display and review the changes made to the
Credit Master Data for a customer
To change the customer credit master data, the following fields need to be
updated:
Credit Limit
Customer Risk Category
Credit Representative Group
Payment Index
The fields required to perform a Credit Master Data display are:

Customer Number
Credit Control Area code
Page 110
Exercise: Display Customer Credit

Management
BPP5789_FIN_AR_FD3233_Display Customer
Credit Management
Page 111
Agenda
5.8. Lesson Summary
Page 112
Brief Overview
This is a Credit Management Report which

provides a short overview of all credit limitrelated data per customer
The report lists the following per customer:
Central Data
Report
Control
area-related
data
The central data

The control area-related data
Page 113
Credit Management Brief Overview

Transaction F.33 is used to display a
brief credit limit overview for a customer
credit account
This report can be saved in the local system file in different formats (i.e.
MS Excel, Rich Text Format, HTML, etc.)
The fields required to display the credit limit overview for a customer
credit account are:
Credit account
Credit Control Area
Page 114
Exercise: Credit Management Brief

Overview
BPP5866_FIN_AR_F.33_Credit Management
Brief Overview
Page 115
Agenda
5.8. Lesson Summary
Page 116
Credit Overview
A credit data list displays an overview of the
customer master data needed for the credit
management of a customer
You can use the following criteria to limit the
selection of customers to be displayed:
Credit account
Credit control area
Credit representative group
You can adapt the volume of data to be

displayed according to your selected
specifications, by selecting a corresponding
line layout variant which contains the
required number of fields
You define these line layout variants in
Customizing for Credit Management
CUSTOMERS
SELECTION CRITERIA
Credit account
Credit control area
Page 117
Credit Overview: Displaying Additional Data

On request, the system displays the following additional data per customer/credit
control area:
Address data
Days in arrears of the open items in all

company codes belonging to the credit control
area
Credit management central data (such as total

limit, individual limit)
Open items in all company codes belonging to

the credit control area, displayed according to
the line layout variant specified
Balance and special G/L balance of the

customer in each company code belonging to
the credit control area
Texts about the customer
Dunning data of the customer in all dunning

areas of the company codes belonging to the
credit control area
Individual payment histories with periods and

days in arrears, summarized at credit control
area level
Page 118
Displaying Credit Overview

The transaction F.31 is used to display a credit overview report for a credit
account
From this report it is possible to navigate to the following credit account details:
Customer Line Item Display
Customer Account Balance Analysis
Customer Master Record Display etc.
The report generated can also be saved in the local file system in many formats
(i.e. MS Excel, Rich Text Format, HTML, etc.)
The fields required to display a credit overview report for a credit account are:
Credit account
Credit Control Area
Page 119
Exercise: Credit Overview

BPP5865_FIN_AR_F.31_Credit Overview
Page 120
Agenda
5.8. Lesson Summary
Page 121
Critical Customers
The early warning list is used to display
and print out the details of those
customers in credit management who are
seen as critical within the credit checks in
SD
In this context, a critical customer is one

who, as a result of data you have defined
in Customizing for Credit Management,
does not pass a few individual checks
(carried out using information from the
A/R summary) either at this moment, or in
the near future
Page 122
Individual Checks
The system will perform the following individual checks to display the
early warning list for a customer
1. Credit check against oldest open items
2. Credit check against overdue open items
3. Credit check against maximum dunning level allowed

4. Credit check against customer's next review date
5. Credit check against age of A/R summary
6. Credit limit used
Page 123
Early Warning List

The transaction FCV3 is used to display critical customers from a credit
management perspective
In order for this report to be generated, the following two programs need to
run as batch jobs in the given order:
1. First, the old AR summary data should be deleted using the program RFCMDECV
(Transaction Code: FCV2 - Delete A/R summary)
2. Then, a new AR summary should be created using program RFCMCRCV
(Transaction Code: FCV1 - Create A/R summary)
This transaction does not have mandatory fields, but the following fields
are filled in to filter the report:
Credit Control Area
Latest date for next check
Page 124
Exercise: Early Warning List

BPP5867_FIN_AR_FCV3_Early Warning list
Page 125
Agenda
5.8. Lesson Summary
Page 126
Resetting Credit Limits

Credit limits need to be reset in the following scenarios:
Controlling Area 123
Controlling Area 456
Company Code
A
Company Code
A
Company Code
A
Controlling
Area 456
Controlling
Area 456
Controlling
Area 456
$$
ND
Assigning a company code to a new control area
Changing the assignment of company codes to

control areas
Changing the currency of a control area

Altering the classification of a difference reason
code from disputed to non-disputed (or vice
versa)
Page 127
Reset Customer Credit Limit

The transaction FD32 is used to change the credit master data for a customer,
including resetting the customer credit limit
The Customer Credit Master Change is achieved by updating the following fields:
Credit Limit
Payment Index
If the Risk Category, Credit Representative Group, Credit Group etc. change in
the credit account, sales documents must be reorganized to copy the new values
The fields required to make changes to the customer credit master data are:
Customer
Credit Control Area
Credit Limit
Risk category
Payment index
Page 128
Exercise: Reset Customer Credit Limit

Credit Management
Page 129
Agenda

5.8. Lesson Summary
Page 130
Release Held Order

The purpose of this function is to release a held
order
Customer sales orders that violate credit
checking rule(s) will go on credit hold
The order is not available for delivery when on
credit hold
Credit representatives will run this transaction to
check for customers assigned to them who have
an order on credit hold
For any order that is on credit hold, the credit
representative will secure payment and then
release the order using this transaction
After the order has been released, it will be
available for delivery
Page 131
Block SD Documents
The transaction VKM1 is used to display a detailed report with blocked
sales documents
The report can be further filtered to yield specific information by populating
fields like Credit control area, Credit representative group, Risk category
etc.
Blocked SDs can be released to create delivery
This transaction does not have mandatory fields, but the following fields
are filled in to filter the report:
Credit control area
Risk category
Page 132
Exercise: Block SD Document

BPP5458_FIN_AR_VKM1_Blocked SD
Documents
Page 133
Agenda
5.8. Lesson Summary
Page 134
Change Customer Credit Status

The transaction FD32 is used to change the credit master data for a customer,
including changing the credit status
The Customer Credit Master Change is achieved by updating the following fields:
Credit Limit
Payment Index
If the Risk Category, Credit Representative Group, Credit Group etc. change in
the credit account, sales documents must be reorganized to copy the new values
The fields required to make changes to the customer credit master data are:
Customer
Credit Control Area
Credit Limit
Risk category
Payment index
Page 135
Exercise: Change Customer Credit Status

Credit Management
Page 136
Agenda
5.8. Lesson Summary
Page 137
Lesson Summary
Display Credit Management Brief Overview for
a customer credit account
Display the Credit Overview for a customer
credit account
Display an Early Warning List of critical
customers
Reset the Customer Credit Limit
Block or release SD Document
Change the Customer Credit Status
Page 138
Questions?
Page 139
Agenda
1. Introduction

10. Summary
Page 140
Topic Objectives
Create Payment Advice
Perform Incoming Payment Fast Entry
Clear Customer
Request Customer Downpayment
Post Customer Downpayment
Clear Customer Downpayment
Enter Bill of Exchange Payment Request
Pay Bill of Exchange
Reset Customer Cleared Items
Process Accommodation Invoices
Post with Clearing
Page 141
Incoming Payment Process

The Caterpillar Incoming Payment Process contains both automated and
manual payment procedures
Automated Payment Procedures:
Lockbox
EFT/Wire Transfer
Direct Deposits
Credit Card Payments
Manual Payment Procedures:
Down Payments
Bill of Exchange
Cash Payments
Accommodation Invoice Payments
Page 142
Automated Payment
All automated payment detail is contained in files
received from various sources, i.e. banks,
Sungard, and/or other electronic data
transmissions for application. Those files are
converted into SAP format for processing
An additional enhancement to the automated

functionality is the customer on-line (Web
enabled) payment process through the use of
SAP Biller Direct module. This process will bring
the increased customer self-service functionality
and on-line (Web-enabled) visibility to invoices
and payment history
Page 143
Manual Payment
Manual procedures will be put in place to monitor and reconcile
payments for accommodation invoices
Additional validation will be performed to ensure revenue recognition
date has been reached allowing payment application and clearing of
open items
Use of pre-determined customer
tolerances and processing within
established guidelines and
governance will expedite the cash
application and clearing process
of receivables when payment receipts
Customer
have been received
within acceptable tolerances
Page 144
Agenda
6. Managing Incoming Payments
6.1. Create Payment Advice
6.2. Incoming Payments Fast Entry
6.3. Clear Customer
6.4. Request Customer Downpayment
6.5. Post Customer Downpayment

6.6. Clear Customer Downpayment
6.7. Enter Bill of Exchange Payment Request
6.8. Pay Bill of Exchange
6.9. Reset Customer Cleared Items
6.10. Process Accommodation Invoices

6.11. Post with Clearing
6.12. Lesson Summary
Page 145
Payment Advice
A payment advice note contains the
incoming payment details required for
allocating and clearing the relevant open
item
Payment advice notes are used during
payment clearing to search for and
allocate open items automatically
Instead of having to enter selection
criteria and then process the open items,
all you have to do is specify the payment
advice note number. The system uses
the payment advice note to propose
items for clearing, including any
necessary difference postings and
payments on account
Page 146
Structure of Payment Advice
Payment Advice
Header Data
Item Data
Payment advice note headers contain

the payment amount, payment date,
and other information about the
payment
The advice items contain information
on the paid items: the amount and
any associated difference reason
codes
Payment advices also contain
information used for identification
purposes such as
document number, reference number,
billing document number, customer
reference number and so on
Other Information
Page 147

Transaction FBE1 is used to create Payment Advice for incoming payments
Payment advice notes are used during payment clearing to search for and
assign open items automatically
Company Code
Account Type
Account
It is important to note that once the transaction is saved, a payment advice

number is generated. The payment advice number is shown in the status bar
at the bottom of the screen
Payment advice 0408102907WI was created
A payment advice cannot be deleted until 10 days after the date it is created
Page 148
Exercise: Create Payment Advice

BPP5433_FIN_AR_FBE1236_Create-ChangeDisplay-Del Payment Advice
Page 149
Agenda
6.3. Clear Customer


Page 150
Posting Incoming Payments

This process is utilized to perform
the following business procedures
by rapidly entering customer
payments received into various
accounts and clearing accounts
receivable and debiting the cash
account:
Manual deposits
Wire transfers
Advice of credit (payments to credit
the customers account)
Page 151
Incoming Payments Fast Entry

Transaction F.26 is used for rapidly entering incoming payments and
clearing outstanding invoices for multiple customers. It can also be
used for creating residual items and dispute cases where necessary
Company Code
Document Type
Posting Date
Posting Period
Bank Account
Currency
Document Date
Customer
Amount
Page 152
Other Transactions Used

While performing this transaction, certain other transactions are used
to check for the following:
To view open items: FBL5N
To create dispute case: F-28
When the document number appears in the status bar, it indicates that
the incoming payment has been posted and the user can now process
other incoming payments for other customers
Page 153
Exercise: Incoming Payments Fast Entry

BPP5841_FIN_AR_F-26_Incoming Payments
Fast Entry
Page 154
Agenda
6.3. Clear Customer


Page 155
Clear Customer
The purpose of the Clear Customer transaction is to clear the customer
payment
This function differs from posting with a clearing transaction or posting with a
payment in the following ways:
The user does not need to enter a

document header
The user can only clear open

items from one account
The user can use this function to clear debits and credits that balance to zero
Page 156
Exercise: Clear Customer

BPP5873_FIN_AR_F-32_Clear Customer
Page 157
Agenda
6.3. Clear Customer


Page 158
Down Payment Requests

Down payment
requests are noted
items and do not
update the account
balance
The payment program

can collect down
payments that a
credit rep has
requested from
a customer
These requests are

used by the
dunning program to
remind a customer
of an outstanding
down payment
A down payment is
posted so that the
payment program
can make the entry
Page 159
Features of Down Payment Requests

When a down payment request is
posted, the system records a
document that is not relevant for
accounting purposes, but is merely a
noted item to remind the user to
expect a down payment
It does not update the monthly debits
and credits
To enter the down payment request,
one or more line items in the
customer account are posted without
an offsetting entry. Consequently,
the system does not check whether
the debits equal the credits
Customer
Revenue
Down Payment
Expansion
Request
System
Page 160

Transaction F-37 is used to request customer down payment. Down
payment requests are special general ledger transactions which use
special G/L indicators. These transactions are not posted to the
customer reconciliation account but to an alternative reconciliation G/L
account
Document Date
Posting Date
Document Type
Company Code
Currency/Rate
Period
Account
Trg.sp. G/L Ind.
Page 161
Exercise: Request Customer

Downpayment
BPP5439_FIN_AR_F-37_Request Customer
down payment
Page 162
Post Down Payments

You can post a customer down
payment whether or not you have
previously created a down payment
request. Creating a down payment
request is an optional step
To post a down payment received
without a down payment request, you
post the down payment directly
You supply all the necessary data
including the customer's account
number, the bank account number,
and the special G/L indicator, and the
amount
Page 163
Posting with reference to Downpayment

Request
To post a down payment received
after a down payment request has
been issued, you select the down
payment request when you post the
down payment
The system then only needs the data
in the initial screen to make the
posting
These include the customer's
account number, the bank account
number, and the special G/L indicator
The system takes all other data, such
as amount or tax code, from the
down payment request
Downpayment
Request
Page 164
Post Customer Downpayment F-29

Transaction F-29 is used to post customer down payments. Down
Payment is a function that uses Special GL indicators. Special GL
Transactions allow the user to post the document to an alternative GL
account instead of normal customers reconciliation account.
Document Date
Posting Date
Document Type
Company Code
Currency/Rate
Period
Account
Special G/L Ind
Account
Page 165
Exercise: Post Customer Downpayment

BPP5440_FIN_AR_F-29_Post Customer down
payment
Page 166
Two Ways to Clear Customer Down

Payments
You can clear a down payment automatically using the payment program
or you can do it manually
The down payment is cleared with the final invoice either:
By transferring the down payment to the
receivables account and referring to
this transfer when posting the payment
By directly clearing the down payment

with the invoice when payment is made
Page 167

Transaction F-39 is used to clear customer down payment. Down
Payment clearing will allow posting a clearing document manually. In
down payment clearing we clear a down payment against a
customer invoice
The prerequisite for a Down Payment
Clearing is to have an outstanding
customer invoice posting and an
outstanding customer down payment
Page 168
Exercise: Clear Customer Downpayment

BPP5441_FIN_AR_F-39_Clear Customer down
payment
Page 169
Agenda
6.3. Clear Customer


Page 170
Bills of Exchange
Bills of exchange (BOE) are a form of short-term finance
If your customer pays by bill of exchange, he does not make payment
immediately, but only once the period specified on the bill has elapsed (three
months, for example)
Bills of exchange can be passed on to third parties for refinancing (bill of

exchange usage)
Page 171
Bill of Exchange Payment Request

Bank bills and bill of exchange payment requests are special bills of exchange
receivable that are not issued by the customer but by you
Bill of exchange payment requests are sent to the customer for acceptance, and
bank bills are passed directly on to a bank for financing
Bank bills
Bill of Exchange
Payment Request
Bank bills are subject to a general agreement with

the customer whereby the customers acceptance
is not required
Bills of exchange can be passed on to third
parties for refinancing (bill of exchange usage)
Page 172

Transaction FBW1 is used to request a Bill of Exchange (BOE) payment request
from customers that have B/E as payment methods
Document Date
Type
Company Code
Posting Date
Currency
Account
Return Before
Due on
A Document number is generated and displayed on the status bar. This document
number is only a statistical posting, a noted item on the GL account
Page 173
Exercise: Enter Bill of Exchange Payment

Request
BPP5442_FIN_AR_FBW1_Enter Bill of
Exchange Payment Request
Page 174
Payment by Bill of Exchange

Payment by bill of exchange varies from country to country. Two different
procedures can be distinguished:
Bill of exchange issue
before due date
Bill of exchange issue

on due date
In some countries, bills of exchange

are issued directly after the invoice
is issued. The drawer (payee) is
thus able to pass on the bill of
exchange to a bank for refinancing
as early as possible
In other countries, bills of exchange

are not issued until the invoice is
actually due (the due date of the bill of
exchange will be later than the due
date of the invoice). The payer thus
gains from the fact that his receivables
are paid later on the bill due date
Page 175

Transaction F-36 is used to process a receipt for a BOE from the
customer
Document Date
Type
Company Code
Posting Date
Currency
Account
Return Before
Due on
Page 176
Exercise: Pay Bill of Exchange

BPP5443_FIN_AR_F36_Pay Bill of Exchange
Page 177
Agenda
6.3. Clear Customer


Page 178
Resetting Clearing
You can reset clearing transactions
for individual documents
When clearing is reset, the clearing
data is removed from the line items
(and the reversal data, where it
existed, is removed from the
document header)
The document changes are logged
and can be displayed in the change
documents
In resetting a clearing document, all
accompanying correspondence
requests are marked so that you can
see that their clearing document was
reset. Reorganized (deleted)
requests are not marked in this way
Customer
Document
You can also decide whether the
clearing document should be

reversed. If you do not reverse it, it
will also remain in the system as an
open item to be cleared along with
the other open items
Page 179
Exercise: Reset Customer Cleared Items

BPP5847_FIN_AR_FBRA_Reset Customer
cleared Items
Page 180
Agenda
6.3. Clear Customer


Page 181
Posting Incoming Payments
When accounting data has been

posted for customers in Accounts
Receivable, it is sorted by
customers and made available to
other components, for example
Sales and Distribution (SD)
When you post data in Accounts Receivable, the system creates a
document and passes the data entered to the general ledger. General
ledger accounts are then updated according to the transaction
concerned (receivable, down payment, bill of exchange, and so on)
Page 182
Exercise: Process Accommodation

Invoices
BPP5434_FIN_AR_F-28_Post Incoming
Payments
Page 183
Agenda
6.3. Clear Customer


Page 184
Posting With Clearing

Posting with clearing is performed to
clear debits and credits from across
multiple customer accounts
This process will allow the user to
select a group of two or more
customers, and then select debit and
credit amounts across these accounts
for clearing against each other
The system will use posting keys 07
(Other clearing - debit) and 17 (Other
clearing credit) that are associated
with customer account transactions
Page 185
Post With Clearing

Transaction F-30 is used to Post with Clearing, when there is a need of
clearing postings amongst customers in the same company code
Document Date
Company Code
Currency
Posting Keys
Account
At the end of this transaction, the status bar displays a message such
as:
Page 186
Exercise: Post with Clearing

BPP5879_FIN_AR_F-30_Post with Clearing
Page 187
Agenda
6.3. Clear Customer


Page 188
Lesson Summary
Perform Incoming Payment Fast Entry
Clear Customer
Post Customer Downpayment
Reset Customer Cleared Items
Process Accommodation Invoices
Post with Clearing
Page 189
Questions?
Page 190
Agenda
1. Introduction
2. Display / Change AR Data

10. Summary
Page 191
Topic Objectives
Import lockbox
Post lockbox
Reprocess lockbox
Import bank statement
Display electronic bank statement
Post electronic bank statement
Reprocess bank statement
Page 192
Statements
The statement of an account is a
periodic representation of the
customers receivables with
Caterpillar by Company Code
The statement of accounts is
provided to the customer at the end of
each month
The statement of account can also be
provided to the customers on a
weekly basis on their request
Page 193
Process of Creating A Statement

The process of creating a statement of
account is initiated by the Accounts
Receivable analyst who is capable of running
the report online. The report can also be run
by the system as an automatic batch run at
the end of each month, print and then issue to
customers
The customer master record stores the
indicator, which determines the date when
the customers should receive the statement
The printed option stores the statements
permanently on the production server for
future reference
Page 194
Agenda
7.1. Import Lockbox
7.2. Post Lockbox
7.3. Reprocess Lockbox
7.4. Import Bank Statement
7.5. Display Electronic Bank Statement
7.6. Post Electronic Bank Statement
7.7. Reprocess Bank Statement
7.8. Lesson Summary
Page 195
Import Lockbox
The lockbox process is usually used in the US
to accelerate the check processing and
payment receipt process
The checks sent by the customers are
entered as credit memos by the bank
The record layout in the lockbox file should
always match the standard BAI format
The bank transmits the data medium and
relevant information on the checks to the
payee
The data medium is further used by the ECC
system to generate postings for AR and
General Ledger via batch input
Page 196
Post Lockbox Process

The Post Lockbox process
uses the automated lockbox
posting program to permit the
posting of incoming payments
against open A/R items
The transaction is used only
when there is a problem in
receiving the transmission file
from the bank in its scheduled
time
Lockbox posting program
Post incoming
payments
Page 197
Post Lockbox
Transaction FLBP is used to invoke
program RFEBLB30 and process the
lockbox data received from the bank
by producing payment memos and
postings, creating posting logs
The process generates a report with
information about the payments that
are applied against invoices partially
applied, posted to account,
unprocessed etc. after lockbox
processing
The transaction also displays an
exception log, which shows the
reason for errors generated during
lockbox processing
Page 198
Required Fields
Destination
Origin of Transm
Lockbox
Enhanced invoice number check
At the end of the transaction, the following message appears in the

Status bar:
Page 199
Exercise: Import Lockbox

BPP5435_FIN_AR_FLB2_Import Lockbox
Page 200
Exercise: Post Lockbox

BPP5436_FIN_AR_FLBP_Post Lockbox
Page 201
Reprocess Lockbox
Transaction FEBA is used to process any payments that could not be
fully applied or processed by the Lockbox Import Program
As a part of post processing, payment advice can be referred to, and
clearing information on payment advice can be added, changed, or
deleted
Use the reason codes to classify deductions
This transaction also allows posting a deduction as a residual item to
the customer account or to a G/L account
Automatic posting can be carried out after changing the payment
advice
Destination
Origin of Transm
Lockbox
Page 202
Most Important Reprocessing Features

Several lockboxes can be displayed simultaneously
Navigation easier between various lockboxes
Customer in the payment advice header can be changed
Customers, vendors and G/L accounts can be selected freely

Posting of several checks can be done simultaneously
Page 203
Exercise: Reprocess Lockbox

BPP5437_FIN_AR_FEBA_LOCKBOX
Reprocess
Page 204
Agenda
7.1. Import Lockbox
7.2. Post Lockbox

7.8. Lesson Summary
Page 205
Import Bank Statement

Is used to electronically transfer a bank statement
data to the Cash Management module
Import Bank
Statement
Is initiated by the Bank Communication Software (BCS). This software

dials into the credit institution of the user and transfers data
Requires a standardized format, which includes

MultiCash, BAI, or Swift MT940
Reads the required data from the bank statements
Is used to post all items on an electronic bank statement
Is run on a scheduled job or automated basis
Page 206
Display Electronic Bank Statement

In order to print a particular bank statement you
should enter the statement date or statement
number of the specific statement
The user must enter a company code, house
bank ID and account ID
If you know the ID of a particular bank
statement to be displayed, it can be directly
entered in the selection screen
The ID is printed on the header line and it
represents a bank statement in the ECC
system
Enter statement
date
Enter statement
number
Print
Bank
statement
Page 207
Program Selection: Display Electronic Bank Statement

Transaction FF_6 is used to view a bank statement that has been
received into the EPP system
In order to display an electronic bank statement, the statement should
be in the bank buffer data
Application
Company Code
House Bank ID
Bank Account ID
Page 208
Exercise: Display Electronic Bank

Statement
BPP5845_FIN_AR_FF_6_Display Electronic
Bank Statement
Page 209
Post Electronic Bank Statement

Transaction FEBP is used to Post Electronic Bank Statement
Set this transaction to create batch input sessions for processing electronic
bank statement
This transaction creates direct postings to the G/L accounts
This transaction displays a posting log with the list of accounting documents
that were created along with an updated account statement
Page 210
Post Electronic Bank Statement (contd)

House Bank
Account ID
Company Code
The items, which cannot be posted automatically are processed in the

Post-process step
This process runs in an automated or scheduled job basis
This process can also be executed online if required
At the end of the transaction, the message in the Status bar depicts
the following message:
Processing Completed
Page 211
Exercise: Post Electronic Bank

Statement
BPP5844_FIN_AR_FEBP_Post Electronic
Bank Statement
Page 212
Reprocessing
After an Electronic Bank Statement has been
imported into SAP, and the posting process has
been run, the system will have automatically
posted bank activities that were identified with
posting rules. However, for transactions that
could not be posted automatically, a user will
need to perform the Postprocess function
The bank statement is displayed and all items
that have not been posted already are marked in
red as unposted. Each unposted item is then
selected and posted to a customer accounts
receivable
The process is repeated until all items within the
Electronic Bank Statement have been posted and
are displayed as green
Page 213
Reprocess Bank Statement

Transaction FEBA_BANK_STATEMENT is used to reprocess the
unprocessed items from an electronic bank statement manually
Application
Company Code
House Bank
Account ID
Statement Date
Page 214
Exercise: Reprocess Bank

Statement
BPP5846_FIN_AR_FEBA_BANK_STATEMEN
T - Reprocess
Page 215
Agenda
7.1. Import Lockbox
7.2. Post Lockbox

7.8. Lesson Summary
Page 216
Lesson Summary
Import lockbox
Post lockbox
Reprocess lockbox
Import bank statement
Display electronic bank statement
Post electronic bank statement
Reprocess bank statement
Page 217
Questions?
Page 218
Agenda
1. Introduction

10. Summary
Page 219
Topic Objectives
Calculate Item Interest
Calculate balance interest
Enter interest rates
Enter time interest terms
Enter reference interest values
Provide an overview of interest runs
Page 220
Interest Calculation
Floating rates or fixed rates are used to
calculate and charge regular interest to
customers
The Sales and Distribution (SD) team
passes the interest bearing invoices to
customers
The interest bearing invoices are
reported on the statements as separate
line items
Page 221
Statements
Statements are produced and sent to the
customers using the following methods:
On a monthly basis
On the defined reporting period for an
individual customer
Statements transactions are grouped by:

Product transactions
Debit and credit transactions
Statements are mailed, e-mailed, or faxed

according to the requirement of the
customer
Customers using SAP Biller can access
the statements online
Page 222
Periodic Processing Interest Calculation

1. Customer interest
calculation
9. Check interest indicator

in customer master data
17. Run interest calculation

in production mode
2. Determine if interest rates

are up to date
10. Customer master

maintenance needed
18. Determine if interest

is to be posted
3. Interest rates update

needed
11. Send request to Customer Master Financial

Data Releaser to update customer master
19. Interest to be posted
4. Request interest rate

update
12. Customer master data

changed
20. Post interest if higher than

tolerances- Create customer invoice
5. Request to update interest

rates received
13. Run interest calculation

in simulation mode
21. Determine method of

sending customer invoice
6. Update interest rates/terms
14. Calculate interest by

customer/currency
22. Print interest invoice
15. Display interest run

results
23. Fax interest invoice
16. Fix errors
24. E-mail interest invoice
7. Communicate interest rate

to AR analyst
8. Updated interest rates
received from Finance Manager
Page 223
Agenda
8.1. Calculate Item Interest
8.2. Balance Interest Calculated
8.3. Enter Interest Rates
8.4. Enter Time Interest Terms
8.5. Enter Reference Interest Values
8.6. Overview of Interest Runs Itemized Interest
8.7. Lesson Summary
Page 224
Item Interest Calculation

The functions of the Item Interest
Calculation report are:
Interest on pending arrear debits for
items on a customer account can be
created
Interest credit for items paid before
the stipulated due date can be
created
Letters to customers can be created
and printed
Overview of items subject to interest
can also be created
Page 225

Transaction FINT is used to Calculate
Item Interest
Use this transaction to calculate, post,
and create an interest invoice, that will
be sent to the customer for payment
The interest is calculated and applied
to the specific customer account
The Interest indicator on the Customer
master record determines the actual
interest to be charged
The required field for this transaction
is:
Calculation
Posting
Creation
Invoice
Interest Calculation to
Page 226
Exercise: Calculate Item Interest

BPP5449_FIN_AR_FINT_Calculate Item
Interest
Page 227
Agenda
8.7. Lesson Summary
Page 228
Balance Interest Calculation

The balance interest calculation
function in the FI system is:
Used to calculate interest on the
balance of G/L accounts, which are
managed with open item display
Used to double check the interest
calculated by the banks on the
customers account
Used in Accounts Receivable and
Accounts Payable to calculate
interest on the staff loan accounts
FI System
Balance interest
calculation
Staff
G/L Customer
loan
accounts accounts
account
Page 229
Balance Interest Calculated

Transaction F.26 is used for Balance Interest Calculated
Incoming payments and clearing outstanding invoices can be rapidly
entered for multiple customers, using this transaction
This transaction is often used for creating residual items and dispute
cases
Company Code
Document Type
Posting Date
Posting Period
Bank Account
Currency
Document Date
Customer
Amount
Page 230
Exercise: Balance Interest Calculated

BPP5841_FIN_AR_F-26_Incoming Payments
Fast Entry
Page 231
Agenda
8.7. Lesson Summary
Page 232
Interest Rates
It is often mandatory to update the interest rates before running the
interest calculation report
The methods to define interest rates are:
One interest rate and validity date for each
interest indicator can be entered
One amount-dependent interest rate and one

validity date for each interest indicator can be
entered
Reference interest rates can be used. To perform

this, a key for the interest indicator under which
relevant rates are stored can be entered
Page 233
Enter Interest Rates

Transaction S_ALR_87001320 is used to
Enter Interest Rates, for period update of
the interest rates that are used to calculate
an interest on a customer account
The updated interest rates are used to
calculate both the regular interest and the
default interest on customer accounts
You can create new interest rates using
this transaction
The Treasury department supplies all
required information to update the interest
rate table
The field required for this transaction is:
Debit %
Page 234
Exercise: Enter Interest

Rates
BPP5446_FIN_AR_S_ALR_87001320_Enter
Interest Rates
Page 235
Agenda
8.7. Lesson Summary
Page 236
Enter Time Interest Terms

Transaction S_ALR_87002510 is used for updating the Premium
(markup) interest rate for the Interest indicators
This is an add on interest to the actual interest calculated in transaction
ALR_87001320
This process is an example of changing an interest rate of an existing
Premium Interest rate
The process also involves the creation of new Premium interest rates
Term
Ref interest rate
Premium (Mark up) Interest rate
Page 237
Exercise: Enter Time Interest

Terms
Time Interest Terms
Page 238
Agenda
8.7. Lesson Summary
Page 239
Enter Reference Interest Values

Transaction S_ALR_87002678 is used to update the Prime, Libor, and
other Bank rates
The transaction allows you to add new bank rates whenever necessary
Business decides the time of updating and creating bank rates
Interest Rate
Reference
Valid Time
Int Rate
Page 240
Exercise: Enter Reference Interest

Values
Reference Interest Values
Page 241
Agenda
8.7. Lesson Summary
Page 242
Overview of Interest Runs Itemized Interest

An interest scale for each account is
displayed by the system
The form, which is used to display an
interest scale is stored under the interest
indicator within the system
The program provides an option of
requesting interest rate overview, which
is printed after the interest calculation
run
To determine the detailed interest scale,
you should select a summarization level
To monitor the interest calculation run,
run the system log
Stored in
Display
Interest scale
Accounts
Form
Page 243
Overview of Interest Runs Itemized Interest (contd)

Transaction FINTSHOW is used to display interest runs, which were
already performed
You can only display those interest runs, which was carried out using
the report Item Interest Calculation (RFINTITAR)
Partner
Account Type
Company Code
Page 244
Exercise: Overview of Interest Runs Itemized

Interest
BPP5450_FIN_AR_FINTSHOW_Overview of
Interest Runs-Itemized Inter
Page 245
Agenda
8.7. Lesson Summary
Page 246
Lesson Summary
Calculate balance interest
Enter interest rates
Enter time interest terms
Enter reference interest values
Provide an overview of interest runs
Page 247
Questions?
Page 248
Agenda
1. Introduction

10. Summary
Page 249
Topic Objectives
Display Customer Data
Display/Change/Create/Reverse Documents
Mass Reverse Documents
Perform Automatic Clearing
Manually Clear Customer
Balance Carry Forward
Perform Foreign Currency Valuation
Open/Close Posting Periods
Create Periodic Customer Account Statement
Perform Dunning
Page 250
Periodic Processing and Reporting

Activities
Customer Credit Payout
Statements
Dunning
Interest Calculation
Monthly and Year End Activities
Page 251
Customer Credit Payout

When credits must be passed backed to a Customer and cannot be netted against
open AR items, the customer can be paid via EFT or wire transfer for approved credits
The process will be initiated and approval granted in the Accounts Receivable
department
The approved request will be forwarded to the Accounts Payable payment processor
for issuance of payment. After payment has been issued to the customer, Accounts
payable processor will inform the accounts receivable department that payment has
been made
Accounts
Payable
Payment
Processor
Request
Accounts
Payable
Payment
Processor
Accounts Receivable
Page 252
Monthly/Year End
Monthly and year end activities include
closing the Accounts Receivable
reporting period, performing foreign
currency revaluation, and completing the
open item balance carry forward process
The AR department will be notified by
Corporate Consolidations when each
reporting month should be closed for
postings and when the first reporting
period of the next year should begin
Customer account will be automatically
cleared if clearing criteria are met,
according to Caterpillar policies
If no matching criteria are found then a
manual clearing can be performed using
standard SAP functionality
Page 253
Periodic Processing Monthly/Yearend

Determine processing requirements
Foreign currency revaluation
of Open Items
Determine if exchange
rates maintained
Request exchange
rates maintenance
Revaluation of FX open items
for selected customers
Fix errors
Customer account clearing
Year end balance carry

forward of receivables
Open AR period
Select customers for

automatic clearing
Run automatic clearing

for selected customers
Customer clearing failed
Change clearing criteria

for failed customers
Balance carry forward
Display customer balance

carry forward
Review customer balance
carry forward
Fix errors
Create list for

revaluated items
Run automatic clearing

for failed customers
Customers open items
cleared
Run balance carry forward
List balance carry forward

Page 254
Agenda
9.1. Display Customer Data
9.2. Display/Change/Create/Reverse Documents
9.3. Mass Reverse Documents
9.4. Automatic Clearing
9.5. Manual Clear Customer
9.6. Balance Carry Forward
9.7. Foreign Currency Valuation
9.8. Open/Close Posting Periods

9.9. Create Periodic Customer Account Statement
9.10. Dunning
Page 255

Transaction FD10N is used to display the line items for one or more accounts
Line items are document items that were posted to a specific customer account
In contrast to a document item, a line item only contains the information from the
document that is relevant from the account view
The following line items can be displayed:
P
Cleared items
Parked items
Items with special G/L

transactions
Items with customer

or vendor items
Noted items
Open items
Page 256
Account Types
The line items can be displayed for the following account types:
Customer Accounts
Vendor Accounts
General Ledger (G/L) Accounts

Page 257
Exercise: Display Customer Data

BPP5542_FIN_AR_FBL5N_Customer Line
Items
Page 258
Exercise: Display Customer Data

BPP5453_FIN_AR_FD10N_Display Customer
Balance
Page 259
Agenda

9.10. Dunning
Page 260
Documents
Documents are the result of a posting in Financial Accounting
Documents form the link between the business transaction and the
posting in Accounting
Business transaction
Posting in Accounting
Documents consist of a document header and at least two line items

There are two types of documents: Original documents and Processing
documents
Page 261
Examples of Documents
Examples of original documents
Examples of processing documents
Checks
Sample documents
Recurring
entry
documents
Invoices
Receipts
Accounting
documents
Bank statements
You can only check whether postings are correct in the compact
journal and general ledger by means of documents. Every posting
must therefore have a document number
Page 262
Exercise: Display/Change/Create/Reverse
Documents FB01/FB02/FB03/FB08
Please reference the Document:
BPP5875_FIN_AR_FB02_Change
accounting Document
BPP5876_FIN_AR_FB03_Display
accounting Document
BPP5877_FIN_AR_FB08_Reverse
accounting Document
Page 263
Agenda

9.10. Dunning
Page 264
Mass Reversal
You can reverse entry documents that were
generated during a mass run
You can only reverse entry documents that
have the status Posted
All relevant entry documents are determined for
the program run via the document family
A corresponding reversal document is
generated for each document
For the program run, you can define whether all
reversal documents are posted directly or are
subject to an approval procedure as pre-posted
reversal documents
The reversal documents then receive either the
status Posted (Reversal) or Pre-posted
(Reversal)
Page 265

Transaction F.80 is used to reverse multiple FI documents
Company Code
Document Number
Reversal Reason
At the end of this transaction, the following confirmation message

appears in the status bar
Processing completed
Page 266
Exercise: Mass Reverse Documents

Please reference the Document:
BPP5878_FIN_AR_F.80_Document mass
reversal
BPP5469_FIN_GL_FB08_F.80_Document
Reversal_Mass Reversal
Page 267
Agenda

9.10. Dunning
Page 268
Automatic Clearing
You can clear the open items of
customers, vendors and G/L accounts
with the clearing program
The program sets up groups of items per
account according to specified criteria
If the balance of the group is zero in local
and in foreign currency, the items are
marked as cleared
When clearing, the program puts a
clearing document number and a
clearing date into the line items
It uses the document number and the
posting date of the most recent
document with the highest document
number that is involved in the clearing
process
Open
Items
Page 269
Grouping
For the automatic clearing process, the program groups items with similar:
Account type
Company
code
Item rules
Account number
Business area
Totals
item
(not used)
Trading partner ID
(not used)
Reconciliation
Account number
Currency
For grouping, the account numbers in the Account Configuration menu should be
specified
The criteria for every account type should be specified making them dependent on an
account or an account interval. This helps to restrict the number of items that are
processed together
Page 270
Exercise: Automatic Clearing

BPP5872_FIN_AR_F13E_Automatic clearing
Page 271
Agenda

9.10. Dunning
Page 272
Manual Clearing
This function differs from posting with a
clearing transaction or posting with a
You do not need to enter a document
header
You can only clear open items from one
account
You can use this function to clear debits

and credits that balance to zero (for
example, invoices and payments that
you have already entered)
Since internal transfer postings may
have to be generated, a document type
must be defined for clearing. The system
assigns the clearing date and clearing
document number to each open item
cleared
Page 273
Manual Clear Customer

Transaction F-32 allows the user to clear open items on the customer
account. It differs from posting with a clearing transaction or posting with a
The user does not need to enter a document header
The user can only clear open items from one account
The required fields are:

Customer Account
Clearing Date
Period
Company Code
Currency
The status bar in the Clear Customer: Header Data screen shows the
following message
Page 274
Exercise: Clear Customer

Page 275
Agenda

9.10. Dunning
Page 276
Balance Carry Forward Program

At the end of each fiscal year the carry balance forward program
needs to be run so the customer balances are correct on the first day
of the next fiscal year. If this program has not been run, the previous
year balance is not reflected in the customer's account balance
Page 277

Transaction F.07 is used for Balance Carry Forward
The Balance Carry Forward program should be run for all customers
and for all company codes that have customer accounts. Make sure in
production, the program is first run in test mode to validate that the
results will be what are expected
Once the results are verified, take off the test run and run the program
again. Make sure this program is run in the next year for the previous
year
Company Code
Fiscal Year
Customer selection
Detail log
Page 278
Exercise: Balance Carry Forward

BPP5461_FIN_AR_F.07_Balance Carry
Forward
Page 279
Agenda

9.10. Dunning
Page 280
Valuation Covers Accounts and Items

To create financial statements, a foreign currency valuation needs to be
performed. This valuation covers the following accounts and items:
Foreign currency balance sheet

accounts, that is, the G/L accounts
that are maintained in a foreign
currency
Open items that were posted in

foreign currency. Open items that are
open on the key date are valuated in
foreign currency
Page 281
Prerequisites
Foreign currency valuation can be performed in:
Local currency
Company code currency
Parallel currency (for example, group currency)
You can use different valuation methods for this valuation

For foreign currency valuation, you have to make sure that the
following settings are made in Customizing:
You have defined the exchange rates

You have defined the valuation methods
You have defined the valuation areas
You have assigned valuation areas and accounting principles
Page 282
Valuation Methods
Valuation methods refer to the cross-chart of accounts specification
that contains the valuation approach to be used for performing a
foreign currency valuation as part of the closing operations, for
example, according to the lowest value principle
In a valuation method, you make the following specifications for the
foreign currency valuation:
The valuation procedure to be used,
for example, lowest value principle
How the exchange rate differences
determined should be posted, for example,
which document type should be used
The basis on which the exchange rate
should be determined, for example,
which exchange rate type should be used
Page 283
Foreign Currency Valuation

Transaction F.07 is used for month-end foreign currency revaluation as per
Caterpillar's accounting principle. For AR the accounts that are revalued are
for AR open items posted in foreign currencies
Company Code
Valuation key date
Valuation area
Customer
When you review the revaluation postings, the first document is the original
revaluation accrual posting and the second posting is the reversal of the
accrual on the first day of the next period
In the Display logs screen, review the messages displayed in the screen to
ensure that there are no errors
Page 284
Exercise: Foreign Currency Valuation

BPP5459_FIN_AR_FAGL_FC_VAL_Foreign
Currency Valuation-Open Items
Page 285
Agenda

9.10. Dunning
Page 286
Open/Close Posting Periods
Posting period variants

Account type
Account interval
User
Period 2
Period 1
You define posting periods in your fiscal year variants. You can open and close
these posting periods for posting. As many periods as you require can be open for
posting simultaneously
Usually, only the current posting period is open for posting, all other posting periods
are closed. At the end of this posting period, the period is closed, and the next
posting period is opened
During period-end closing, special periods can be open for closing postings
You have the following differentiating options when opening and closing posting
periods:
Page 287
Exercise: Open/Close Posting Periods

BPP5460_FIN_AR_S_ALR_87003642_Open
and Close Posting Periods
Page 288
Agenda

9.10. Dunning
Page 289
Periodic Customer Account Statement

This is a program which selects the customers for whom account statements or open
items lists are to be output periodically and places corresponding requirements in the
table for Financial Accounting correspondence requests
After selection, the current correspondence requests are output for periodic account
statements or open items lists by means of the triggering report for correspondence and
the print reports and processed correspondence requests are reorganized for periodic
account statements or open items lists
Correspondence
requests
Correspondence
requests
Customer Selection
Correspondence
requests
Reorganizing
correspondence
requests
Periodic Account
Statements
Page 290
Create Periodic Account Statement

Transaction F.27 is used to Create Periodic Account Statement and
notify customers of their due balances monthly after all credit and
debit postings to their accounts
The required fields are:
Company Code
Account Type
Account
Indicator in Master Record
Key dates for acct statement
Correspondence
Page 291
Exercise: Create Periodic Customer

Account Statement
BPP5455_FIN_AR_F.27_Create Periodic
Account Statement
Page 292
Agenda

9.10. Dunning
Page 293
Periodic Processing - Dunning

AR Analyst
AR supervisor
Customer Master Financial

Data Releaser
Determine if Dunning is needed
Dunning request received
Request to change customer master data

received
Customer dunning needed
Decide if customer should be

dunned
Assign dunning procedure to customer

master data
Request approval to initiate/change

customer dunning
Dunn customer
Customer master request completed
Authorize the dunning procedure to be

used
Customer dunning was authorized
Request to change dunning procedure send
to Customer Master Financial Data Releaser
Run dunning
Customer master data update for dunning
level/date
Dunning letters issued
Change dunning request received

Decide if customer dunning procedure
should be changed
Change dunning procedure
Authorize change of the dunning procedure
Inform requester of dunning decision
Interest calculated and posted
Page 294
Dunning Program
Sometimes business partners
may fall behind on payments. You can
send them a payment reminder or a
dunning notice to remind them of
their outstanding debts
The SAP System allows you to dun
business partners automatically
The system duns the open items from business partner accounts in
which the overdue items create a debit balance
The dunning program selects the overdue open items, determines the
dunning level of the account in question, and creates a dunning
notice. It then saves the dunning data determined for the items and
accounts affected
Page 295
Dunning
Use the following attributes to control the dunning program, you can
configure them according to the needs of your company:
Dunning procedures
Dunning level
Dunning areas
Transaction F150 is used to send customers reminder notices if they have

past due open receivables
The dunning process can run according to a predetermined schedule or as
and when a customer needs to be reminded
During the dunning process, the system logs the following details:
The customers master data record
The date on which the last dunning was run
The level of dunning (levels of dunning increase as per the severity of the notice
being sent to the customer)
Page 296
Exercise: Dunning
BPP5454_FIN_AR_F150_Dunning
Page 297
Agenda

9.10. Dunning
Page 298
Lesson Summary
Display/Change/Create/Reverse Documents (verify, change
create)
Perform Automatic Clearing
Manually Clear Customer
Perform Foreign Currency Valuation
Open/Close Posting Periods (verify who will be doing this)
Create Periodic Customer Account Statement
Perform Dunning
Page 299
Questions?
Page 300
Agenda
1. Introduction

10. Summary
Page 301
Course Summary
You should now be able to
Provide an overview of Accounts Receivable (AR)

Display/change AR data
Process invoices
Process credit memos
Perform credit management
Manage incoming payments
Process lockbox and bank statements
Calculate interest
Perform period-close activities
Page 302
Whats Next
Structured practice only in the sandbox folder
Read and review the help
Page 303
Where to Find Help

Refer to the following documents:
BPP5453_FIN_AR_FD10N_Display Customer Balance

BPP5452_FIN_AR_FBL5N_Customer Line Items
BPP5425_FIN_AR_FD01-02-0305_Create-Change-Display-Block Cstmer- Ac
BPP5429_FIN_AR_FB70_Enter Outgoing Invoice
BPP5431_FIN_AR_FV70_Park Customer invoices
BPP5871_FIN_AR_FBV2_Change Parked Invoice/ Credit Memo Documents
BPP5870_FIN_AR_FBV0_Post- delete parked documents
BPP5839_FIN_AR_F.62_Print Miscellaneous Invoice/Credit Memo
BPP5430_FIN_AR_FB75_Enter Outgoing Credit memos
BPP5432_FIN_AR_FV75_Park Outgoing Credit memos
BPP5871_FIN_AR_FBV2_Change Parked Invoice/ Credit Memo Documents
BPP5870_FIN_AR_FBV0_Post- delete parked documents
BPP5839_FIN_AR_F.62_Print Miscellaneous Invoice/Credit Memo
BPP5789_FIN_AR_FD3233_Display Customer Credit Management
BPP5866_FIN_AR_F.33_Credit Management Brief Overview
Page 304
Where to Find Help

BPP5865_FIN_AR_F.31_Credit Overview
BPP5867_FIN_AR_FCV3_Early Warning list
BPP5458_FIN_AR_VKM1_Blocked SD Documents
BPP5433_FIN_AR_FBE1236_Create-Change-Display-Del Payment Advice
BPP5841_FIN_AR_F-26_Incoming Payments Fast Entry
BPP5439_FIN_AR_F-37_Request Customer down payment
BPP5440_FIN_AR_F-29_Post Customer down payment
BPP5441_FIN_AR_F-39_Clear Customer down payment
BPP5442_FIN_AR_FBW1_Enter Bill of Exchange Payment Request
BPP5443_FIN_AR_F36_Pay Bill of Exchange
Page 305
Where to Find Help

BPP5847_FIN_AR_FBRA_Reset Customer cleared tems

BPP5840_FIN_AR_F-28_Post Incoming Payments
BPP5879_FIN_AR_F-30_Post with Clearing
BPP5435_FIN_AR_FLB2_Import lockbox
BPP5436_FIN_AR_FLBP_Post Lockbox
BPP5437_FIN_AR_FEBA_LOCKBOX Reprocess
BPP5843_FIN_AR_FF_5_Import Bank Statement
BPP5845_FIN_AR_FF_6_Display Electronic Bank Statement
BPP5844_FIN_AR_FEBP_Post Electronic Bank Statement
BPP5846_FIN_AR_FEBA_BANK_STATEMENT Reprocess
BPP5449_FIN_AR_FINT_Calculate Item Interest
BPP5841_FIN_AR_F-26_Incoming Payments Fast Entry
BPP5446_FIN_AR_S_ALR_87001320_Enter Interest Rates
BPP5447_FIN_AR_S_ALR_87002510_Enter Time Interest Terms
BPP5448_FIN_AR_S_ALR_87002678_Enter Reference Interest Values
BPP5450_FIN_AR_FINTSHOW_Overview of Interest Runs-Itemized Inter
Page 306
Where to Find Help

BPP5453_FIN_AR_FD10N_Display Customer Balance

BPP5452_FIN_AR_FBL5N_Customer Line Items
BPP5875_FIN_AR_FB02_Change accounting Document
BPP5876_FIN_AR_FB03_Display accounting Document
BPP5877_FIN_AR_FB08_Reverse accounting Document
BPP5878_FIN_AR_F.80_Document mass reversal
BPP5872_FIN_AR_F13E_Automatic clearing
BPP5461_FIN_AR_F.07_Balance Carry Forward
BPP5459_FIN_AR_FAGL_FC_VAL_Foreign Currency Valuation-Open Items
BPP5460_FIN_AR_S_ALR_87003642_Open and Close Posting Periods
BPP5455_FIN_AR_F.27_Create Periodic Account Statement
BPP5454_FIN_AR_F150_Dunning
Page 307
Assessment
A few more things
Page 308
References
OnDemand Electronic Performance Support System Website:
https://ondemandt1.ecorp.cat.com/mach1/EPSS/toc.html
CPS Mach 1 Website
https://cpsd.cat.com/mach1
Reference Documents
Process Design Documents (PDDs)
Business Process Procedures (BPPs)
Detailed Process Documents (DPDs)
Helpdesk
Call: 309-231-7069
Email: schoeder_kelley@cat.com
Page 309
Questions?
Page 310
Thank you
Thai
Hindi
Traditional Chinese
Gracias
Spanish
Russian
Thank You
Obrigado
Brazilian Portuguese
Arabic
Grazie
Danke
German
Italian
Merci
French
Tamil
Simplified Chinese
Korean
Japanese
Page 311

OTC900 en V0 01 AR Entry and Processing v2

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AR Entry & Processing

Before you review this course, please

Does this adhere to the approved HLDD?

Caterpillar: Confidential Green

Provide an overview of Accounts Receivable (AR)

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Accounts Payable (AP)

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What Does Mach 1 Stand For?

Represents one team (Team Caterpillar)

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Financial Planning and Forecasting

From Product Development

Customers/ OEMs/ Dealers

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Mach 1 Integrated Process Views

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Manage Sales Master

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The objectives of the Mach 1 Accounts Receivable module are:

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Accounts Receivable a Sub-Ledger

Accounts Receivable is the sub-ledger of Financial accounting

Integral Part of Sales Management

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The AR system contains a range of tools

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Key Terms Organization Structure

Master data which contains information about the GL accounts

Very highest level org structure in SAP

Master data which contains information about the Bank Master

Master data which contains information about the customer

Dealers, OEMs, Govt., Direct, Etc.

Credit Control Area

An organizational unit that represents the area where customer credit is

Key Terms Transactions

Receivable accounts for customers

Sales related document

Generic SAP term for example, a customer invoice

Generic SAP term used for a customer invoice

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7. Lockbox and Bank Statements

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Master Data Overview

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Facts About Customer Master Data

Sales area data

This workshop focuses on General and Accounting Data; Credit Master

Categories of Customer Master Data

-Per company code

This Data is maintained at

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This Data that is maintained for each

Customer Master Account Group

Every customer master is managed under an account group

Customer Master Record Maintenance

Master Record Maintenance

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Display Customer Balance

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Result of This Transaction

The total of all