Automotive

Finance

Balance Transfers (Accounts Payable)

Problem Statement

Balance transfers between companies are manually completed on SAP prior to the Accounts Payable (AP) function processing invoices ready for payment. The team then emails an RMA payment proposal to the UK team suggesting AP invoices for which a payment can be generated.

 

Process Overview

This daily finance process is for teams in Europe to transfer balances from the Accounts Payable ledger on companies for payment purposes. Balance transfers between companies are manually completed on SAP prior to the Accounts Payable (AP) function in India processing invoices ready for payment, the India team then emails an RMA payment proposal to the UK team suggesting Accounts Payable invoices for which a payment can be generated.

 

Solution

On a daily basis, all payable documents meeting the criteria specified will be selected for transfer. A direct document will be created for each and posted to the account. The invoices will be cleared for each document and posted to the account on the duplicate account using the data entered on the original posting. The necessary cross company posting will be made to ensure correct accounting. The standard SAP netting functionality will then be used to offset any debtor/creditor balance. Current SAP functionality used for AP/AR netting must be updated to include all document and billing types for RMA accounts in the automatic netting process.