Accounts Payable Processing with SAP Business ByDesign

See a demonstration of the accounts payable functionalities in the SAP Business ByDesign solution and how they can help you to streamline invoice processing, check cash availability, obtain payment approvals, and execute automated payment runs to pay multiple invoices.

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    • Accounts payable processing with SAP Business ByDesign: Streamlining payables through workflow and automation. In this demo, you’ll see how the SAP Business ByDesign solution enables you to manage the accounts payable process, such as invoice approvals and payments, and execute payment runs for multiple invoices. SAP Business ByDesign is an integrated, solution that’s delivered on-demand through a single interface and supports core business processes – including finance − for small and midsize businesses. In this example, I’m the accountant at my company. I use SAP Business ByDesign to help me specify payment parameters, and to initiate the payment process and approval workflows. This helps the company save time, reduce costs, and maximize efficiency, and it helps ensure that vendors are paid on time and that early payment discounts are realized. It’s the end of the month and the company has several outstanding invoices that need to be paid, so I need to execute a payment run. First, From the CASH AND LIQUIDITY work center, I check the company’s cash balance to make sure there’s enough to cover its current and projected obligations. The LIQUIDITY FORECAST allows me to check not only cash in the company’s bank accounts, but also the status of incoming and outgoing payments to determine if there are any pending payments that may negatively impact the company’s cash. Satisfied that the company has adequate cash to cover the current batch of invoices, I proceed with the payment run. First, several paper invoices have been received and need to be posted. In the SUPPLIER INVOICING work center, I select “New Invoice” from the task list and enter the required data. I enter the Vendor ID, invoice date, description, tax information, quantity, and invoice amount. I also enter the general ledger account to which the payment will be posted, and create the allocations to the appropriate cost center by selecting the cost center ID from the drop-down menus. This allows me to update the company’s management reports without changing screens-- to help the company determine how each cost and profit center is performing. From the ACTIONS button, I calculate the totals, run a quick validation check, and post the transaction. Most companies, including ours, have policies governing payment approvals that are based on certain thresholds. This payment amount exceeds one of those thresholds. In SAP Business ByDesign, the amount automatically triggers a business rule that routes this item via workflow to the appropriate approver, in this case, the company CFO. In this example, I’m the company’s CFO. In the MANAGING MY AREA work center, I select the “Approvals” view, and see the approval task line item sent by the accountant. I click on the line item and review the details. Satisfied with the information, I click the “approve” button. Once the invoice is approved, the company’s liquidity forecast is automatically updated. In this example, I’m the company’s accountant. I want to refresh the LIQUIDITY FORECAST to determine how this payment affects the company’s liquidity. I click the ACTIONS button and select View Details, which refreshes the report and expands the view on the RECEIVABLES/PAYABLES line item. Clicking on the line item I just created allows me to drill down into the transaction details behind it. Sure enough, the new payment I created is included in the forecast line item. Then I click the EXPORT button to create a report in Microsoft Excel, which
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