Online Tutorials & Training Materials | STechies.com
Register Login

What is SAP Accounts Receivable Process Life Cycle?

|| || 3

What is SAP Accounts Receivable Process Life Cycle?
Stechies

Hello SAP Experts,

I want to know the SAP Accounts Receivable Life Cycle. If anyone from you guys know about that then please give me your opinion regarding the below given image which I have created as per my best knowledge. Is it right one or not?

Thanks in Advance!


Comments

  • Nitesh Singh
    26 Aug 2015 6:15 pm

    Its really nice and its true too.

  • 26 Aug 2015 6:15 pm

    Hi, can anybody briefly elaborate each term in AR life cycle (above image) clearly?

  • 26 Aug 2015 6:16 pm

    Customer Master Data Creation : Master Data contains all the detailed infomraiton of Customer. 
    Master Data can be created with XD01 or FD01 transaction code. 
    Invoice Creation : When the business transaction happens between organization and customer, this needs to be recorded 
    in the system. Hence it is updated through Invoice. Invoice contains details of Sales,Payment details etc.
    Receive payment via Lockbox : Incoming payment thru a process named Lockbox. Lockbox, mostly used in US. It is process where 
    bank receives check as payment for customer and creates a file in BAI format and send it to company. In turn, company uploads file,
    and reconcile incoming payments.
    Payment on Account/Partial pmt/Full : Incoming payment against the invoice created. Payment are received in Full/part or Installment based against invoice. 
    Payment terms will be agreed between company and customer.
    Write offs : Bad debts.. Amount which is not recovered from customer despite several attempts made to recover it. 
    Clearing Auto/Manual : To complete the business transaction, invoice created need to cleared with payment This process can be either Automatic or manual.
    Dunning : Dunning means a remider. A reminder letter sent to customer thru SAP program with the details of overdue amounts.

Related Articles

0.0157 seconds.