Skip to Content
Author's profile photo Gajesh Nagesh

Accounts Receivables-A Walk Through Part1

Account Receivables is one of the most commonly used financial concepts in any organization. By definition Accounts Receivable (AR) means the amount a customer owes to a company for the goods or services provided by the company. You can see AR in the balance sheet of a company under current assets and therefore has major role to play on the cash flow of a company. The general logic is, less the AR the better will be company cash flow.

As AR has serious roles to play, an extensive analysis is always required on this subject , for eg. when is the money due, top 10 receivable items, ageing of the receivables etc. Now, SAP BW makes all those analysis possible using the standard extractors. With this blog I intend to provide the beginners a basic knowledge on functional aspect as well as the technical aspect of AR.

Functional Flow

AR document automatically gets created in the system whenever an invoice is posted against a customer sales order.  So each AR document has a corresponding invoice reference attached to it. You can see the same in the document flow of a sales document as shown below

AR document flow.jpg

The important parameter of AR is the customer itself, as each AR document represents a customer line item. The other important aspects are

  • Payment Term – Each AR documents will have a payment term defined in it. Payment term is the terms defined by the company to its customer for the payment. For eg a payment term of 90 days means the customer can pay the company within 90days.

Payment term.jpg

  • Base Line Date – This is the date from which payment terms gets applicable. This can be the AR posting date or document date etc.

  • Net due Date – This is the date when the receivable becomes due. An example would be that an AR document base line date of 01.01.2013 has a payment term of 30days will have a net due date as 31.01.2013. SAP BW data source 0FI_AR_3/4 calculates the net due date using the function module DETERMINE_DUE_DATE from fields ZFBDT, ZBD1T, ZBD2T, ZBD3T, BLDAT, KOART, REBZG, REBZT, SHKZG in tables BSID and BSAD.
  • GL Account – Each AR customer line item will have GL account attached to it. You can see the same in the GL view of the AR document. GL account will help in categorizing whether the AR is an advance, receivable, retention, 3rd party receivables etc.

  • Document Status –The status determines whether the AR is still open or whether it is cleared. If the clearing date is available in the AR document it means that the AR document is cleared.

Clearing.jpg

SAP Tables & Transaction code

In R/3 system the AR data gets stored in tables BSAD and BSID. BSID table consists of  open AR item and BSAD consist of the  cleared item.  0FI_AR_3/4 Data Source  extracts Accounts Receivable Accounting line items from tables BSID (open items) and BSAD (cleared items). FBL5N is the T code generally used to check the Receivables data for a customer. FBL5N enables a user to check the open items as on any given date and provides all the detailed level information. You can check the GL wise balance also using FAGLB03 or FAGLL03.

FBL5N.jpg

In the next part I will try to provide the details of the BW flow and key reports on Receivables.  Request all to provide your feedback and share your knowledge on this subject.

Thanks in Advance

Regards

Gajesh

Assigned tags

      35 Comments
      You must be Logged on to comment or reply to a post.
      Author's profile photo Former Member
      Former Member

      Very nice and concise document. Thanks for the share.

      Author's profile photo Gajesh Nagesh
      Gajesh Nagesh
      Blog Post Author

      Thanks Siddharth

      Author's profile photo Former Member
      Former Member

      Good One...Thanks.

      BR,

      Naresh K.

      Author's profile photo Phani KV
      Phani KV

      HI,

      Good Document.

      Thanks,

      Phani.

      Author's profile photo Gajesh Nagesh
      Gajesh Nagesh
      Blog Post Author

      Thanks Phani

      Author's profile photo Former Member
      Former Member

      waiting for part2.  🙂

      Author's profile photo CH Raman
      CH Raman

      Very useful information and nice to read about  AR functional flow..

      Good job gajesh. Waiting to see second one.

      Author's profile photo Gajesh Nagesh
      Gajesh Nagesh
      Blog Post Author

      Thanks Guru

      Author's profile photo Former Member
      Former Member

      Really helpful ..thanks for sharing

      Author's profile photo Gajesh Nagesh
      Gajesh Nagesh
      Blog Post Author

      Thanks Arathy

      Author's profile photo Ramakrishna N
      Ramakrishna N

      Very usefull doc - RK

      Author's profile photo Gajesh Nagesh
      Gajesh Nagesh
      Blog Post Author

      Thanks RK

      Author's profile photo Former Member
      Former Member

      Good Document !!

      Waiting for the next part 🙂

      Author's profile photo Gajesh Nagesh
      Gajesh Nagesh
      Blog Post Author

      Thanks Rohith

      Author's profile photo Former Member
      Former Member

      Very nice document. Thank you for sharing...

      Regards

      Venkat...

      Author's profile photo Former Member
      Former Member

      Hi Gajesh,

      Simple yet very clear blog. Even though i have used the AP-AR reports few years back. There were details which i came to know oly after reading ur blog.

      Regards

      Hariprassad.K

      Author's profile photo Gajesh Nagesh
      Gajesh Nagesh
      Blog Post Author

      Thanks Venkat & Hari

      Author's profile photo Priyesh Shah
      Priyesh Shah

      Good One Bro.

      Author's profile photo Gajesh Nagesh
      Gajesh Nagesh
      Blog Post Author

      Thanks Priyesh

      Author's profile photo Anshu Lilhori
      Anshu Lilhori

      Really helpful blog as it gives the functional flow and knowledge of FI-AR.

      Definition of different dates are really important to know and the explanation is apt.

      Regards,

      AL

      Author's profile photo Former Member
      Former Member

      This doc helps gaining functional knowledge. A great write-up

      Thanks,

      Sathya

      Author's profile photo jagadeeshwar dasari
      jagadeeshwar dasari

      Hi Nagesh,

      Nice document to understand Functional..

      Regards,

      Jagadeesh

      Author's profile photo abilash n
      abilash n

      Nice one Nagesh.... waiting for next blog.....

      Author's profile photo Former Member
      Former Member

      Hi Nagesh,

      clear and crisp info !!!!

      Author's profile photo Sneha Jagadeesh Kanchi
      Sneha Jagadeesh Kanchi

      Hi Nagesh,

      Nice document. Thank u for the information.

      Author's profile photo Gajesh Nagesh
      Gajesh Nagesh
      Blog Post Author
      Author's profile photo Harish Allachervu
      Harish Allachervu

      Hi Nagesh,

      Splendid job if possible can you please enlighten our knowledge in FI_GL concepts also!!

      Thanks & Regards,

      Harish

      Author's profile photo Former Member
      Former Member

      Very concise and helpful.  I need clarification on this statement, "So each AR document has a corresponding invoice reference attached to it."  I thought some AR documents can be created directly in FI-AR without a preceding SD document.  Please clarify.

      Author's profile photo Gajesh Nagesh
      Gajesh Nagesh
      Blog Post Author

      Hi Mark,

      Yes you are right. If the AR document is directly created in FI there is no preceding SD document and in this case invoice reference will be blank

      Regards

      Gajesh

      Author's profile photo Former Member
      Former Member

      very usefyll , as you have shared all the table names. ➕

      Author's profile photo Benedict Venmani Felix
      Benedict Venmani Felix

      hi Gajesh,

      Wonderful effort. You just had the right amount of information needed for a BW developer to understand AR. After the second part on BW side please do a document for AP too.

      Thanks,

      Benedict

      Author's profile photo Leslaw Piwowarski
      Leslaw Piwowarski

      Hi,

      Great idea to create this.

      Waiting for your document regarding BW side.

      Regards, Leszek

      Author's profile photo Anshu Lilhori
      Anshu Lilhori

      Its already there in place

      Accounts Receivables-Part 2

      Regards,

      AL

      Author's profile photo Leslaw Piwowarski
      Leslaw Piwowarski

      Thanks,

      Regards, Leszek

      Author's profile photo Prakash K
      Prakash K

      Hi Gajesh,

      Excellent doc for BW consultants.

      BR,

      Prakash K