What is Accounts Payable in SAP ?

Accounts Payable (AP) is an important application of SAP FICO module that helps to record and manage accounting data of all vendors. In SAP, sundry creditors are called accounts payables and sundry debtors are called accounts receivable.

SAP Accounts payable accounting is also called as sub-ledger accounting, as the business transactions are carried out individually in the vendor accounts. All the transactions that are processed in accounts payable are recorded directly in the general ledger account. The real time updating will be done through the settings made in general ledger master while creation of account. The settings are done by choosing vendors for reconciliation account for account type. Every postings that is done in accounts payable generates a respective posting to a assigned general ledger account and ensures that the sub ledgers are always reconciled with the general ledger.

SAP FI accounts payable can be integrated with SAP FI – GL (General Ledger), FI-AA (Asset Accounting), SAP MM (Material Management), etc. The deliveries and invoices are managed according to the vendors.

Important configuration steps of accounts payable

SAP Accounts Payable configurations
S.noSAP Accounts Payable Configuration steps
1Define vendor account groups in SAP
2Create number ranges for vendor accounts
3Assign number ranges to vendor accounts
4Maintain terms of payment for vendors
5Define accounts for exchange rate difference
6Define field groups for vendor master records
6Define accounts for bank charges
7Define payment block reasons
8Define tolerance for vendors in SAP
9Define accounts for payment differences
10Set up all company codes for payment transactions
11Set up payment methods per country for payment transactions
12Define void reason codes
13Define reconciliation accounts for vendors
14Define interest calculation types
15Define time dependent terms
16Automatic Payment Program (APP)

Continue to read free SAP tutorial that guides you how to configure SAP R/3 system step by step with real time scenarios.