Written by Takanashi — Paddy & Water Inc. / Finance & Controlling

Complete Guide to All Functions and Operations of SAP FI: General Ledger, Accounts Receivable, Accounts Payable, Fixed Asset Accounting, and Bank Accounting

June 2026

Chapter 1: The Big Picture and Basic Concepts of SAP FI

The Role of FI (Financial Accounting)

SAP FI (Financial Accounting) is an “accounting record system for external reporting.” It is the core module for preparing financial statements — the balance sheet (BS), income statement (P/L), cash flow statement, and more — in accordance with statutory standards such as IFRS, Japanese GAAP, and US GAAP.

FI is an external-reporting function that “records the facts of transactions in real time using double-entry bookkeeping.” Management accounting information — such as “why a cost was incurred” or “which product the cost belongs to” — is handled by SAP CO (Controlling). In S/4HANA, the Universal Journal (ACDOCA) integrates both, so a single posting records information in both FI and CO simultaneously.

Main Sub-Components of FI

GL (General Ledger): The final destination for all transaction records. The BS and P/L are generated from here. AR (Accounts Receivable): Billing customers, receiving payments, and credit management AP (Accounts Payable): Paying vendors and invoice verification AA (Asset Accounting): Acquisition, depreciation, and retirement of equipment and buildings BL (Bank Accounting): Bank accounts, electronic banking, and bank reconciliation

Organizational Units: Company Code and Business Area

• Company Code: The top-level organizational unit in FI. It represents the legal entity for which independent financial statements (BS/P/L) are prepared. Code, name, country, currency, and language are set up in OX02.

• Business Area: Used to produce BS/P/L statements by “business line” across company codes — for example, the manufacturing division, sales division, or service division. It is configured in OX03.

• Chart of Accounts (COA): The list of G/L accounts. It is defined in OBD4 and can be shared across multiple company codes. In Japan it is common to adopt a two-tier structure of an “operating COA” plus a “group COA” (for consolidation).

Basic Journal Entries and Posting Mechanics in FI

Every posting in FI is recorded as “double-entry bookkeeping (debit = credit).” In S/4HANA, entries are recorded in the ACDOCA table in a “one journal entry line item per row” format. Each journal entry carries a “company code, posting date, document date, FI document type (SA/KR/DR/AB, etc.), G/L account, amount, vendor/customer code (for AR/AP transactions), and text.”

• Document Type: A key that classifies the type of posting — SA (G/L posting), KR (vendor invoice), KZ (vendor payment), DR (customer invoice), DZ (customer payment), AB (accounting document), etc. Defined in OBA7.

• Posting Period: Controls whether posting is permitted or prohibited for each accounting period (month). OB52 is used to prohibit posting after month-end close.

Automatic Journal Entry Generation and Workflow Control

SAP FI is tightly integrated with other modules and automatically generates journal entries as soon as a business transaction occurs. Understanding “where journal entries originate” is at the heart of FI implementation design. Approval workflows (WF) can also automate internal controls, from provisional posting through to final posting.

Triggering Business Event	Automatically Generated Entry (Debit → Credit)	Related Tx/Settings
MM: Goods Receipt (GR)	Inventory account (BSX) ← GR/IR clearing account (WRX)	Movement type 101
MM: Invoice Verification (MIRO)	GR/IR clearing account (WRX) ← Accounts payable (KBS)	MIRO/OBYC
SD: Goods Issue confirmation (GI)	Cost of goods sold (GBB-VAX) ← Inventory account (BSX)	Movement type 601
SD: Billing document creation (VF01)	Accounts receivable (F/R) ← Revenue (ERF/ERL)	VKOA condition technique
PP: Material issue (261)	Work in process (GBB-VBR) ← Raw material inventory (BSX)	Movement type 261
PP: Finished product receipt (101)	Finished goods inventory (BSX) ← Manufacturing cost variance (PRD)	Production order settlement
FI: Recurring entries (F.14)	Automatic release entries for deferred/prepaid expenses	F.14 / ACACTREE02
FI: Foreign currency valuation (F.05)	Foreign currency valuation difference (B/S valuation difference) ← Foreign exchange gain/loss	Monthly batch

▌ Workflow: AP Invoice Parking → Approval → Final Posting

·Park: In FB60/FBV0, AP staff enter the invoice, but it is saved as a parked document rather than posted. ·WF routing: Based on conditions such as amount thresholds or cost center, the document is automatically routed to an approver (Fiori: Approve Supplier Invoices). ·Approval complete → automatic Post: When the approver clicks Approve in Fiori, the parked document is posted as a final document (an FI document number is assigned). ·Approval of the payment proposal (F110): A workflow can also be configured so that a supervisor or finance staff member reviews and approves the payment list before payment execution.

Chapter 2: GL (General Ledger)

The Role of GL and New G/L

GL (General Ledger) is the core of FI. Postings from every sub-ledger — AR receipts, AP payments, AA depreciation, MM inventory postings, and more — ultimately flow into the GL. S/4HANA’s New G/L performs real-time “document splitting,” enabling balance sheets to be produced in real time by business area, cost center, and profit center.

GL Operations: Entering and Managing Journal Entries

Operation Walkthrough: FB50 Entering a GL Journal Entry (General Posting)

• Start FB50 (GL journal entry). Enter the header information — “document date, posting date, currency, company code.”

• Line-item entry area: enter “debit/credit indicator (S/H), G/L account, amount, cost object (cost center/WBS, etc.), text” for each line. Keep adding lines until total debits equal total credits.

• Use the Test button (Simulate) in the header to check the simulation screen before posting. Once posted, a document number is assigned.

• Typical uses of FB50: manual adjustment entries, provisions (e.g., allowance for doubtful accounts), and month-end closing entries such as prepaid expenses and accrued expenses.

Operation Walkthrough: F-02 Other GL Postings (Legacy Screen)

• F-02 is the legacy version of FB50. Some special transactions (foreign currency valuation differences, clearing processes) still use transactions derived from F-02. Basic manual journal entries use FB50.

Operation Walkthrough: FB03 Displaying Journal Entry Documents

• Start FB03 (display journal entry document). Enter the company code, document number, and fiscal year, then press Enter.

• Check the “posting date, amount, and posting user” in the document overview. Double-clicking a line item shows details such as “cost center, material, and text.”

• The “Follow-on Documents” button displays links to related CO documents, MM inventory documents, and AA documents.

Operation Walkthrough: FBL3N GL Account Line Item Report

• Start FBL3N (GL account line item report). Select company code, G/L account (or account range), posting date range, and status (open/cleared/all items), then press F8 (execute).

• Click a journal entry document number in the results list to view the original document in FB03. Use this to review the breakdown of account balances, check specific postings, and perform pre-month-end-close checks.

Operation Walkthrough: FS10N GL Account Balance Display

• FS10N (GL account balance display): specify a G/L account and fiscal year to display monthly balances. Opening balance, monthly debit total, monthly credit total, monthly net movement, and cumulative balance can all be reviewed in a single list.

• Double-clicking a balance drills down to the FBL3N line item report.

GL: Foreign Currency Valuation and Translation

Operation Walkthrough: F.05/FAGL_FC_VAL Period-End Valuation of Foreign Currency Balances

• F.05 (foreign currency balance valuation): At month-end or period-end, foreign-currency-denominated account balances are retranslated at the valuation rate, and foreign exchange gain/loss entries are automatically created.

• Select a valuation key (for example, “MTD: monthly valuation”). Enter the company code, account range, valuation date, and valuation rate type.

• Review the journal entries generated in the test run before executing the actual run. The valuation difference is automatically posted as either “foreign exchange gain (income)” or “foreign exchange loss (expense).” It is common practice to configure an automatic reversal entry at the start of the following month.

GL: Period-End Closing

Operation Walkthrough: F.16 Carrying Forward Balances (New Fiscal Year Initialization)

• F.16 (balance carryforward): At fiscal year-end, the current year’s P/L account balances are transferred to the “retained earnings account,” and the balance carryforward process for the new fiscal year is performed. This resets P/L account balances to zero and updates “retained earnings” on the balance sheet.

• Enter the company code, fiscal year, and carryforward date. Review the entries in a test run before executing the actual run.

• When processing multiple company codes at once, use the SAP_NEW_YEAR_OPENING batch job.

Chapter 3: AR (Accounts Receivable)

The Role of AR and Integration with SD

AR (Accounts Receivable) handles “billing customers, receiving payments, and managing receivable balances.” It is linked with billing document creation (VF01) in SAP SD, so an AR entry (a debit posting to the accounts receivable account) is automatically created at the same time an SD billing document is posted. AR’s main tasks: manual entry of customer invoices (for transactions outside of direct sales orders), payment processing, dunning, foreign currency valuation, and credit management.

Customer Master Data

Operation Walkthrough: FD01/FD02/FD03 Creating, Changing, and Displaying Customer Master Records

• FD01 (create customer master): creates the FI (accounting) view of the customer master. Enter general data (name, address) and company code data (reconciliation account, payment terms, credit limit).

• Reconciliation Account: The G/L account that accumulates a customer’s receivable balance (for example, “Accounts receivable account: 1130000”). Account type “D” is set. Customer postings are automatically summarized to the GL via the reconciliation account.

• Payment Terms: set the invoice due date and early-payment discount (for example, “2% discount if paid within 30 days, net 60 days”). Defined in OBB8.

Operation Walkthrough: FD32 Setting Credit Limits

• FD32 (change customer credit master): sets the “credit limit, credit control group, date of last credit review, and risk category” for each customer. FD33 is display-only.

• OVA8 (credit check settings): configures whether a credit check is performed at each of the SD sales order (VA01), delivery (VL01N), and billing (VF01) points, and whether exceeding the limit produces only a warning or a block.

AR Journal Entry Operations

Operation Walkthrough: FB70 Manual Entry of Customer Invoices

• Start FB70 (customer invoice entry). Enter the “customer code, invoice date, posting date, payment terms, currency” in the header.

• In the line items, enter the “G/L account (revenue account), amount (tax-inclusive/exclusive), tax code, cost center.” Tax is calculated automatically from the tax code.

• Use the “Calculate Tax” button to automatically calculate the consumption tax. After posting, it is recorded as “accounts receivable” in the customer reconciliation account.

Operation Walkthrough: F-28 Manual Entry of Customer Payments (Incoming Payment Processing)

• Start F-28 (incoming payment processing). Enter the “bank account, payment date, amount, currency, customer code” in the header.

• On the “select open items” screen, select the invoices to be paid. If the invoice amount and the payment amount match, they are matched automatically. If a difference arises, specify the “reason for the difference” (discount, loss, rounding).

• After posting: the bank account is debited and the accounts receivable account is credited, and the receivable line item for the invoice becomes “cleared.”

Operation Walkthrough: FBL5N Customer Line Item Report (Accounts Receivable List)

• FBL5N (customer line item report): specify the customer code (a range can be specified), company code, key date, and status, then execute with F8.

• Open Items: the list of invoices that have not yet been paid. This is the base list for checking receivable balances and for dunning activities.

• Cleared Items: the list of invoices that have already been paid. Used to confirm payment clearing.

• Double-click the “document number” on any line item to check the original document in FB03.

Operation Walkthrough: F150 Dunning Processing

• F150 (dunning run): aggregates overdue receivables by customer and automatically generates dunning letters according to the dunning level (1: first notice, 2: reminder, 3: final notice, etc.).

• Dunning configuration (OB59/OBB0): sets the “grace period, letter text, and fees” for each dunning level.

Chapter 4: AP (Accounts Payable)

The Role of AP and Integration with MM

AP (Accounts Payable) handles “verifying vendor invoices, processing payments, and managing payable balances.” Goods receipt (MIGO: GR) and vendor invoice verification (MIRO) in SAP MM are the central AP transactions. Three-Way Matching — matching the “purchase order (MM: ME21N) → goods receipt (MIGO) → invoice (MIRO)” — automatically approves supplier invoices.

Vendor Master Data

Operation Walkthrough: FK01/FK02/FK03 Creating, Changing, and Displaying Vendor Master Records

• FK01 (create vendor master): creates the FI view of the vendor master. Enter general data (name, address, remittance bank account) and company code data (reconciliation account, payment terms, payment method).

• Reconciliation Account: The G/L account that accumulates a vendor’s payable balance (for example, “Accounts payable account: 2110000”). Account type “K” is set.

• Payment Method: set electronic transfer (T), check (C), etc. Used by F110 (automatic payment).

AP Journal Entry Operations

Operation Walkthrough: FB60 Manual Entry of Vendor Invoices

• FB60 (vendor invoice entry): used to manually enter invoices for expenses that do not go through a purchase order (for example, utilities, rent, or service fees).

• Enter the “vendor code, invoice date, posting date, amount, currency, payment terms” in the header. Enter the “expense account, amount, tax code, cost center” in the line items.

• After posting: automatically recorded as a credit to the vendor reconciliation account (accounts payable) and a debit to the expense account.

Operation Walkthrough: MIRO Vendor Invoice Verification (Three-Way Match)

• Start MIRO (logistics invoice verification). Select transaction type “Invoice” and enter the “purchase order number.”

• The system displays the “purchase order information,” “quantity received,” and “invoice amount.” Enter the amount and quantity shown on the invoice.

• Use the “Simulate” button to review the journal entry that will be generated before posting (debit: GR/IR clearing account; credit: vendor).

• Price Variance: if the invoice unit price differs from the purchase order unit price, the difference is automatically posted to the “purchase price variance account.”

• After posting: entries are generated to the GR/IR clearing account and the vendor reconciliation account.

Operation Walkthrough: F110 Automatic Payment Run

• Start F110 (automatic payment run). Enter the “run date and identification text” for the payment run and press Enter.

• Parameters tab: set the “posting date, payment date, company code, payment method (T: transfer, etc.), and next payment date (payments due after this date are excluded this time).”

• “Vendor (range)” tab: set the range of vendor codes to be paid.

• “Proposal Run” button: generates the list of invoices to be paid (proposal list). Review the proposal contents in FBL1N.

• “Payment Run” button: automatically creates payment entries based on the proposal list. If electronic banking integration is used, “send payment data” is executed afterward.

• Entries after payment: the vendor reconciliation account (debit) and bank account (credit) are automatically posted. The open invoice line items change to “cleared.”

Operation Walkthrough: FBL1N Vendor Line Item Report (Accounts Payable List)

• FBL1N (vendor line item report): specify the vendor code, company code, and status, then execute with F8.

• Open Items: the list of invoices for which payment has not yet been completed. Used to check for overdue payments and to forecast cash flow.

• Cleared Items: the list of invoices paid via F110. Used to confirm payments.

Chapter 5: AA (Asset Accounting)

The Role of AA

AA (Asset Accounting) manages fixed assets — equipment, buildings, vehicles, software, and the like — “from acquisition through retirement.” Key functions: asset acquisition (linked to purchase orders or acquired directly), automatic depreciation calculation, asset transfers (relocation, conversion, split), retirement, the Asset Register, and automatic posting of depreciation expense.

Asset Master Data

Operation Walkthrough: AS01/AS02/AS03 Creating, Changing, and Displaying Fixed Asset Master Records

• Start AS01 (create fixed asset master). Select an asset class (for example, “3000: Machinery and equipment,” “4000: Tools and fixtures,” “1000: Land and buildings”) and press Enter.

• General data: enter the asset’s name, acquisition date, manufacturer, serial number, responsible cost center, responsible profit center, and location.

• Depreciation Areas: set areas such as “01: book depreciation (Japanese GAAP),” “15: tax depreciation,” and “20: management accounting (IFRS).” For each area, set the “depreciation method (declining balance/straight line), useful life, and residual value.”

• Default settings by asset class (OAYZ): each asset class has default depreciation areas, methods, and useful lives configured, which appear as initial values in AS01.

Fixed Asset Acquisition Operations

Operation Walkthrough: F-90 Direct Acquisition of Fixed Assets (Without Goods Receipt)

• Start F-90 (fixed asset acquisition). Select “external acquisition” and enter the “asset number, acquisition date, acquisition value, tax code, and offsetting account (accounts payable/GR).”

• When acquired via a purchase order, the asset is acquired through the flow MEPO → MIGO (GR) → MIRO (invoice verification). Specify the asset number on the MIRO line item.

Operation Walkthrough: ABUMN Internal Asset Transfer (Inter-Plant Transfer)

• ABUMN (asset transfer): records a change in the responsible department (cost center move), an inter-plant transfer, or a change in purpose of use for an asset.

• Enter the sending asset and the receiving asset (a new asset number or an existing one), the transfer date, and the reason for transfer.

• Accumulated depreciation prior to the transfer is automatically carried over to the receiving asset.

Operation Walkthrough: ABAON Asset Retirement (Sale with Non-Zero Book Value)

• ABAON (asset retirement: recording gain/loss): processes the sale or disposal of an asset.

• Enter the “asset number, transaction type (210: sale, 210: disposal, etc.), retirement date, and proceeds amount.” The “gain/loss on disposal of fixed assets” is automatically calculated from the acquisition value, accumulated depreciation, and sale proceeds.

Automatic Depreciation Run

Operation Walkthrough: AFAB Running Depreciation

• Start AFAB (run depreciation). Enter the “company code, fiscal year, period, and processing type (planned run/repeat/restart, etc.).”

• After confirming the simulation in a test run, execute the actual run. Depreciation expense is automatically posted as a “debit to the expense account and a credit to accumulated depreciation on the asset.”

• Pre-AFAB check: use AW01N (Asset Explorer) to review planned depreciation amounts.

• SMX (job monitor): because AFAB is a large batch process, it runs as a background job. Use SMX to check completion status, warnings, and errors.

Operation Walkthrough: AW01N Asset Explorer

• AW01N (Asset Explorer): specify an asset number to review “acquisition value, accumulated depreciation, net book value, and planned depreciation amount.” Tabs let you switch between the “posted values view (actuals), planned values view (future depreciation plan), and comparison view.”

• “Asset History Sheet” tab: shows a list of the asset’s full history of acquisitions, additions, reductions, and retirements.

Operation Walkthrough: AR02 Printing the Fixed Asset Register

• AR02 (print asset register): prints a full list of all fixed assets showing “asset number, name, acquisition date, acquisition value, accumulated depreciation, and net book value.” Used as the fixed asset register for tax filings and external audits.

Chapter 6: Bank Accounting (BL)

The Role of Bank Accounting

Bank Accounting (BL) handles “management of bank account balances, electronic banking integration, and bank reconciliation.” Key functions: managing the bank master, bank reconciliation (Electronic Bank Statement: EBS), check management, and integration with F110 (automatic payment).

Operation Walkthrough: FF_5/FEBA_BANK_STATEMENT Importing Electronic Bank Statements

• FF_5 (import electronic bank statement): imports the account statement file (in MT940/BAI2 format) received from the bank. After import, the system automatically matches “withdrawals, deposits, fees, and interest” to the corresponding GL entries.

• Transactions that are not automatically matched (Unmatched Items) are reconciled manually in FEBA_BANK_STATEMENT.

Operation Walkthrough: FF7A Cash Management (Liquidity Planning)

• FF7A (liquidity planning): aggregates AR, AP, and electronic bank statement data to display a cash flow forecast by period and by bank account. Used for early detection of cash shortfalls and for deciding how to deploy surplus funds.

Monthly Bank Reconciliation

At month-end, the bank statement of account received from the bank is reconciled against the bank account balance in SAP (FBL3N). Differences are most often caused by “deposits in transit (Outstanding Deposits), outstanding checks, or unprocessed fees.” The cause of the difference is identified and an adjusting entry is entered in FB50.

Chapter 7: End-to-End Transaction Operations Guide

Scenario 1: Procure-to-Pay — From Purchasing to Payment

Operation Walkthrough: Step 1 Purchase Order (MM: ME21N)

• ME21N (create purchase order): create a purchase order by specifying the vendor, item, quantity, unit price, delivery date, and account assignment (cost center/GL). A purchase order number is issued.

Operation Walkthrough: Step 2 Goods Receipt (MM: MIGO)

• MIGO (goods movement): records the goods receipt with reference to the purchase order number. An automatic entry is generated — GR/IR clearing account (debit) and inventory account (credit) — in the case of a valuated goods receipt.

Operation Walkthrough: Step 3 Invoice Verification (MIRO)

• In MIRO, the vendor invoice is three-way matched against the purchase order and the goods receipt. Entries after matching: the GR/IR clearing account (debit) and the vendor reconciliation account (credit to accounts payable) are automatically posted.

Operation Walkthrough: Step 4 Automatic Payment (F110)

• F110 (automatic payment run) processes payment in bulk for invoices whose due date has arrived. Payment entry: the vendor reconciliation account (debit) and bank account (credit) are generated.

Operation Walkthrough: Step 5 Electronic Bank Statement Reconciliation

• The bank statement is imported in FF_5 and automatically matched against the payment line items generated by F110.

Scenario 2: Order-to-Cash — From Sales Order to Payment Receipt

Operation Walkthrough: Step 1 Sales Order (SD: VA01)

• VA01 (create sales order): create a sales order by entering the customer, item, quantity, and price. A credit check (against the FD32 limit) runs automatically.

Operation Walkthrough: Step 2 Delivery and Goods Issue (SD: VL01N/MIGO)

• Create the delivery in VL01N. PGI (Post Goods Issue) generates an automatic entry — inventory account (credit) and cost of goods sold (debit).

Operation Walkthrough: Step 3 Billing (SD: VF01) → Automatic AR Posting

• VF01 (create billing document) issues the invoice to the customer. At the same time as posting, an AR entry is automatically generated — “accounts receivable reconciliation account (debit), sales revenue account (credit), and tax account (credit).”

Operation Walkthrough: Step 4 Incoming Payment Processing (F-28)

• F-28 (incoming payment processing) records the bank receipt and matches it against the receivable line item. After clearing, the receivable balance becomes zero.

Chapter 8: Detailed SPRO Configuration

GL Configuration

• OBD4 (Chart of Accounts configuration): defines the Chart of Accounts. In OBD4, set the “COA number, COA name, maintenance language, and number of digits in the account number.”

• OB53 (configuration of clearing accounts): configures “automatic offset/clearing” settings for accounts such as the GR/IR clearing account and bank sub-accounts.

• OB40 (automatic posting accounts): configures the G/L accounts to which automatic entries — such as consumption tax and foreign currency differences — are posted. For each tax code, set the “input tax account” and “output tax account.”

• OBB5 (posting period management): manages the “start/end date” and posting permissions for each accounting period. OB52 is used to open and close accounting periods.

AR Configuration

• OBD2 (customer account groups): configures “required, optional, and display fields” for each category of the customer master (domestic customers, overseas customers, intercompany customers, etc.).

• OBB8 (payment terms): defines invoice due dates and early-payment discount rates — such as “2% discount within 30 days / net 60 days.”

• FPD0 (dunning procedure): sets the dunning level, dunning interval, dunning fee, and dunning letter text.

AP Configuration

• OBD3 (vendor account groups): configures field control for each category of the vendor master.

• FBZP (automatic payment configuration): configures the payment run settings used by F110 — “paying company code, payment method, bank account, and minimum payment amount.”

AA Configuration

• OADB (depreciation area configuration): defines the depreciation areas (book, tax, IFRS, etc.) for each company code.

• OAVH (asset class configuration): configures, for each asset class, the “number range, account determination (accounts for acquisition cost/accumulated depreciation/depreciation expense), and default depreciation method.”

• OADP (depreciation key configuration): defines depreciation calculation algorithms such as “straight line (SL), declining balance (DDB), and 200% declining balance.”

• OAB1 (fiscal year and accounting period configuration): configures the accounting periods used for asset accounting (the periods in which AFAB is run).

Chapter 9: Implementation Case Studies

Case 1: Manufacturing — Automating Invoice Processing with AP Three-Way Matching (MIRO)

Background and Challenges

At an industrial machinery manufacturer with 600 employees, more than 500 supplier invoices per month were managed in Excel and matched manually against purchase orders and goods receipt documents. Matching errors led to duplicate payments and missed payments, and month-end closing took three to four days.

Establishing Three-Way Matching with SAP FI/MM

• A workflow was configured so that invoices could not be verified in MIRO unless the PO (ME21N) → GR (MIGO) process in MM had been completed.

• Automatic posting of price variances: configured so that any variance from the PO unit price detected in MIRO is automatically posted to the “purchase price variance account.” An approval workflow is triggered only when the variance exceeds a configured threshold (±3%).

• F110 (automatic payment run) is executed weekly. Invoices to be paid are automatically listed, and an electronic transfer file is generated.

Results

• Invoice matching work for the 500 monthly invoices was 95% automated, and month-end closing was shortened from three to four days to a single day.

• Achieved zero duplicate payments. F110’s duplicate-check function prevents the same invoice from being paid twice.

Case 2: Retail — Automating AR Payment Clearing and Credit Management

Background and Challenges

At the wholesale division of a nationwide retail chain, managing receivables for several hundred business partners was cumbersome, and payment clearing (F-28) required a substantial amount of effort. In addition, credit-limit overruns at some business partners were not being detected early.

Automating AR Clearing and Strengthening Credit Management

• Automatic clearing was introduced using electronic bank statements (FF_5). Incoming payment details to the bank account (tagged with a business partner code) are automatically matched against receivable line items. The match rate reached approximately 80%, leaving only the remaining 20% for manual processing.

• Credit limits were set for all business partners in FD32. A credit check was configured to run automatically when a sales order is created (VA01); orders that exceed the limit are blocked and require approval from the sales management department.

Results

• Effort for payment clearing was reduced from 35 hours per month to 7 hours, achieving next-day processing of payment matching.

• Early detection of credit-limit overruns significantly reduced bad-debt risk. The monthly FBL5N report is used to perform receivables aging analysis (over 60/90/120 days).

Case 3: Multi-Site Enterprise — Integrating Asset Accounting and Improving Depreciation Accuracy

Background and Challenges

At a chemical manufacturer with multiple factories, sales offices, and subsidiaries, fixed asset registers were managed separately at each site (a mix of Excel and a legacy accounting system). As a result, the group-wide asset balance could only be grasped at closing time, and responding to tax filings required a great deal of effort.

Integrated Fixed Asset Management with SAP AA

• Fixed assets from all sites were consolidated in SAP AA using AS01. Asset class, acquisition date, useful life, and cost center were registered in a unified format.

• Depreciation areas were configured with three areas — “01: book (declining balance), 02: tax (straight line), 03: IFRS (straight line)” — and run automatically each month via AFAB.

• The asset number was set as an account assignment object on MM purchase orders (ME21N), building a flow in which equipment purchases are automatically capitalized as fixed assets via PO → GR → MIRO.

Results

• Group-wide fixed asset balances became visible in real time, eliminating the need for ad hoc quarterly physical counts.

• Automating depreciation calculations shortened closing effort from six days a month to one day. AR02 (fixed asset register) can now be used directly as the supporting document for tax filings.

End

What You Can Do with SAP FI — Key Financial Accounting Functions and Operations

SAP FI (Financial Accounting) is the module that records and manages a company’s financial transactions in real time. It goes well beyond simple “bookkeeping,” offering a wide range of control functions including approval workflows, automated journal entries, and credit management.

▌ ① Document Entry and Approval Workflow

·FB01/FB60/FB70: manual document entry for incoming payments, outgoing payments, vendor invoices, and customer invoices ·Park function: saves an unapproved document as a parked document for later editing and final approval ·FI approval workflow (BRF+, SAP Workflow): automatic routing for dual approval and supervisor approval based on amount thresholds ·Automatic document creation from received electronic invoices (EDI/PDF) (Fiori: procurement automation)

▌ ② Automatic Determination of Journal Entry Codes and G/L Accounts

·Account determination logic: automatically sets the debit/credit accounts for MM goods receipt, SD goods issue, and PP production completion transactions ·Automatic tax code calculation: the tax code set on the purchase order or sales order is automatically reflected in the journal entry ·Cost center integration (FI-CO): costs are allocated to the cost center or internal order at the same time as the posting to the expense account

▌ ③ Receivables and Payables Management

·Real-time management of receivable and payable balances (customer/vendor accounts) ·Clearing: automatic matching of incoming payment documents with invoices (FBL5N, F-28) ·Dunning: automatic generation of dunning letters for unpaid invoices and management of the dunning history ·Credit management: automatic blocking of sales orders when the credit limit is exceeded

▌ ④ Month-End and Year-End Closing

·Opening/closing of accounting periods (OB52): controls which periods are open for posting; closing a period prevents postings to past dates ·Foreign currency valuation (F.05): automatically records valuation differences on foreign-currency balances at the month-end rate ·Recording provisions (FBB1): automatic monthly entries such as cost of sales provisions and bonus provisions ·Financial statement reports (F.01/S_ALR series): real-time output of the balance sheet, P/L, and cash flow statement

▌ ⑤ Electronic Bookkeeping and Audit Support

·Document management: an electronic audit trail (creator, approver, timestamp) is automatically attached to every journal entry document ·GoBD/Electronic Books Preservation Act compliance: change history and deletion-prevention controls for documents ·Reports for external audit: export of account balance confirmations and journal entry line items