1. >GL or AR >Document Entry >Incoming Payment
Posting with Clearing
Accoumt 1
Inv 1000
Inv 4000
1000
< various selection possibilities>
< various sort possibilities >
< flexible line format >
for Acct 1
(Inv)Invoice1,000
for Acct 2 (Inv) 6,000
for Acct 3 (Inv) 3,000
Account 2
Inv1000
6000
Processing Open Items (OI'S)
OI Cash D. 3%
OI Cash D. 3%
OI Cash D. 0%
OI Cash D. 3%
OI Cash D. 1%
Account n
Ten thousand
10,000
Inv 3000
Inv 1000
3000
Check
xxxxxxxx
xxxxxx
Overpayment < various processing functions > Underpayment < limits for underpayments and overpayments > Payment on account < flexible definition of limits for underpayments> Partial Payment
Assigned 10,000 Diff. 0
Clear
>GL or AR >Document Entry >Incoming Payment
Clearing is the process which marks the items which were previously open, as settled or cleared.
You can clear open items, if you can offset them with an equal amount on the opposite side of the account.
You can also post and clear with one function, for example, you can post an incoming payment and clear open items in customer invoices in one step.

2. Document Entry DocumentHeader Bank Data Selection ?
Open Items - Selection ? - Processing
Post
When you post an incoming payment, you can clear the invoice(s) at the same time.
You can also enter a partial payment or post an outstanding receivable (residual item).

3. Selecting Which Open Items to Process
Posting Date Reference Doc. Document Type Currency :
Open Item 1 Amount Cash Disc.
Open Item 2 Amount Cash Disc.
Open Item 3 Amount Cash Disc.
Clearing Amount Cash Disc Difference
Selection
Doc. Header
Bank Data
Open Items from
Account
Further Accounts Automatic Search
Edit OI's
You can select open items from one or more accounts on the editing screen ('X Other accounts').
You can limit the open item selection using the following functions: -Other Selections: The system displays fields which you can preallocate values for. You can define this field selection in advance. -Automatic search: The system selects the open item(s) which equal the amount entered in the bank posting.
You can view the list of open items by selecting the function 'Edit OIs'.

4. Processing Open Items I
Edit
Options
Line Layout
Doc./Local Curr.
Gross/Net
Commands on/off
- Line Item Amount Cash D. %
- Line Item Amount Cash D. %
- Line Item Amount Cash D. %
- Line Item Amount Cash D. %
+ Line Item 5 Field 1 Field2 Field 3 Amount Cash D. % + - +* -* ++ -- 1 2 3
Difference Clear Amount Cash D.
By selecting 'Settings', you can alter how the system displays open items, for example, you can select a certain line layout.
While displaying open items, you can access the complete document for an individual line item (double-click with the mouse on the document number) or select more open items.
If you set 'Commands on' (default options for processing line items), you are then able to process line items. You can then activate or deactivate line items or process cash discount terms.
If the displayed difference is zero (or within the tolerances), you can clear the open items ('Post').
Post
Doc.
Find

5. Processing Open Items II
Line Item 1 Field 1 Field 2 Field 3 Amount Cash D. %
Line Item 2 Field 1 Field 2 Field 3 Amount Cash D. %
Line Item 3 Field 1 Field 2 Field 3 Amount Cash D. %
Line Item 4 Field 1 Field 2 Field 3 Amount Cash D. %
Line Item 5 Field 1 Field 2 Field 3 Amount Cash D. %
To process an item, you can also activate it by double-clicking with the mouse on the amount.
If you put the cursor on the cash discount amount or the cash discount percentages using the mouse, you can edit these fields directly, for example, to enter another cash discount amount. The system then automatically recalculates the cash discount percentages.
You can also process open items using commands.
Post
activate / deactivate
process

6. Processing Open Items III
Edit
Select
Select Item
Line Item 1 Field 3 Amount Cash D. %
Line Item 2 Field 3 Amount Cash D. %
Line Item 3 Field 1 Field 2 Field 3 Amount Cash D. %
Line Item 4 Field 1 Field 2 Field 3 Amount Cash D. %
Line Item 5 Field 1 Field2 Field 3 Amount Cash D. %
Select Beginning
You can also process open items by activating the menu bars or by using the mouse.
Defaults for open items activated upon entry can be changed in Editing Options.
Selection
Select Beginning

7. Display customer line items
Account
Clear
Display customer line items
Test
Customer
Philadelphia
Allocation DT Doc. Date PK Curr. Amount Clr
Cleared items
DZ 06/03/YYYY 15 USD
DR 06/01/YYYY 01 USD
>AR >Account >Display line items >Environment >Clearing Procedures
If you assign the corresponding invoice(s) to the incoming (outgoing) payment and complete the transaction with 'Post', the payment document is posted. The clearing date and the clearing document number are stored in the field 'Clearing' in the invoice(s) as well as in the payment.
In the line item display, the last three figures of the clearing document number appear in the column 'Clr'.

8. Partial Payment Goto Standard screen Residual item screen
Partial payment screen
Amount entered 1500
Assigned
Pmnt on acct
Difference 470
Net amount Pmnt amount
Item1 Partial Item , , Amount enterd Assigned Pmnt on Acct Difference
40 Bank , Customer 500, Customer ,00
Document
A partial payment can refer to one or more open items (see example above).
In the example, open item 2 is cleared. You enter a partial payment for open item 1 but do not clear it.
The system allocates the partial payment via the fields 'invoice reference' and 'allocation'.

9. Residual Item Goto Standard screen Residual item screen
Partial payment screen
Amount entered 485
Assigned 970
Pmnt on acct
Difference 485
Net amount Residual item
Item 1 Residual Amount entered Assigned Pmnt on acct Difference
40 Bank Customer Customer cash discounts 1, Customer 1,
Document
When you post an outstanding receivable, the system clears the original open item.
It depends on the tolerance group of the business partner, as to whether the cash discount is only partly granted or in full and which payment terms apply to the outstanding receivable.

10. Clearing Open Items with an Exchange Rate Difference
Invoice
Payment
Rate Rate ,105 USD ,105 CAD 2,000 DEM ,042 USD
42 USD
Post
Ex.Rate Diff.
When you post and clear an invoice in foreign currency, the system automatically posts any exchange rate difference.
However, you can also clear the invoice in local currency, but you must then enter the exchange rate difference manually.

11. Clearing in Foreign Currency
Payment in FC Calculated Amount amount paid paid FC1 LC in FC in FC2 in LC
UD expense FC ERD expense LC UD expense LC
Invoice in FC1
FC1 LC
1500
Manual clearing can be carried out in any currency.
The amount for all selected open items is translated into the clearing currency.
The transaction is always carried out as follows:
Currency > Local Currency > Currency for clearing
By proceeding in this manner, no additional entries are required in the exchange rate table in order to carry out cross-currency clearing.
Explanation of the example above 4/1 Invoice 1000 FC1 = 1500 LC [ Rate 1.5 ] 4/15 Invoice 1000 FC1 = 1400 LC = 700 FC2 [Rate 1.4] [Rate 2.0] Payment FC2 = 1380 LC [Rate 2.0] Total difference LC (ERD) Exchange rate difference LC (UD) Unauthorized deductions FC2 = LC

12. Clearing with an Exchange Rate Difference
Internal transfer posting with clearing
Choose OI's
Accounts
Customer D
Vendor K
Goto
Outstanding receivable
A clearing transaction can include several customer and/or vendor accounts. An example of this would be clearing of vendor and customer items when a company is a customer as well as a vendor. In the case of online clearing, the vendor master record number does not have to be stored in the customer master record (and vice-versa).
If required, you must post an outstanding receivable or overpayment.
Post

13. Customer / Vendor Clearing1
Customer Invoice 10,000 3% Cash Discount
Vendor Invoice 4,000 2% Cash Discount
Customer Payment 930
Clearing from to 2 3 4 1 3
Customer
Vendor 1
4 4,000
4 5, ,
10,000
930 3
4,000 2
Cash Disc. Granted
Cash Disc. Taken
You can clear customer and vendor open items from the same company together.
The system can post the difference between two open items as a new open item.
The system processes the cash discount according to the valid percentage rate in the open item.
For example:
1.) Outgoing invoice for 10, % cash discount - no tax.
2.) Incoming invoice for 4, % cash discount - no taxes.
3.) Payment on account for
4.) Clearing 1.) - 3.). Outstanding receivables amount to 5,000.

14. A/R Payment Fast Entry
Specifications for the following incoming payments___________
Company code Posting date Bank acct Business area Special G/L ind.
Doc. Type Posting period
Default data for the following incoming payments_________
Currency Reference doc. Document date Value date
Additional input Fields_________________________________
Possible selection by date Reference number Bank charges
The specifications are valid for the following incoming payments, until they are deleted (menu option 'Delete') or overwritten, if necessary.
You can overwrite the default data in the following screen templates.
If you require additional entry fields, you have to put a cross next to the corresponding field.
Via the menu option 'Enter payments', you can view the initial screen for the incoming payments. If the specifications have already been saved, the initial screen does not reappear. If you want to delete and/ or change the specifications, you can return to the initial screen via the symbol '<-' (F3).

15. Payment Fast Entry
Payment Details_____________________________________
Customer Amount
Document date Loc. curr. amt Value date : :
Line Items Paid_________________________________________
Doc. / Reference
Amount : :
You enter data for the incoming payment. The items which fulfill the selection criteria, appear on the next screen, on the next open item processing screen, at the beginning and are activated.
If there is no ambiguity with regard to clearing, you can post on this screen.

16. Tolerance Groups Payment Limits for Employees
Payment Limits for business partners
Upper Limits for posting procedures Details for clearing procedures Amount Grace period Cash Discount Display Cash Discount Term
Allowed payment differences Permitted payment differences Revenue Adjustment to Revenue Adjustment to Expense Adjustment to Expense Adjustment to
Residual items from paym.differences Payment Term Only grant partial cash discount
The smaller value is valid !
IMG >Financial Accounting Global Settings > Document >
Line Item > Control > Define Tolerance Groups for Employees
You define tolerance groups for employees, as well as for business partners when clearing open items.
You must assign tolerance groups for employees via a table and assign tolerance groups for business partners in the customer or vendor master record.

17. Tolerance Groups Payment Limits for Employees
Payment Limits for business partners
Upper Limits for posting procedures Details for clearing procedures Amount Grace period Cash Discount Display Cash Discount Term
Allowed payment differences Permitted payment differences Revenue Adjustment to Revenue Adjustment to Expense Adjustment to Expense Adjustment to
Residual items from paym.differences Payment Term Only grant partial cash discount
The smaller value is valid !
You define tolerance groups for employees, as well as for business partners when clearing open items.
You must assign tolerance groups for employees via a table and assign tolerance groups for business partners in the customer or vendor master record.

18. Tolerances Tolerances for users
m Upper limits for posting procedures m Permitted payment differences
Assign accounting clerk Tolerance group
Tolerances for groups of business partners
m Specifications for clearing procedures m Permitted payment differences m Specifications for posting residual items from payment differences
Assign business partners Tolerance group
You can assign each of your employees to an employee group. For each employee group, you specify maximum amounts for posting procedures and payment differences allowed.
You use the master record field "Tolerance group", to assign every customer or vendor to a tolerance group.
The system compares tolerances for employees with those for customers or vendors.

19. Automatic Cash Discount Adjustment
Tolerances for bus. partners
Tolerances for users
Permitted payment differences Permitted payment differences Revenue % Revenue % 2 Expense % Expense % 2
Invoice(s) Cash Discount Incoming Payment Difference SKT / UBS / 3 /
Using three examples, the illustration shows how the SAP System automatically adjusts the cash discount to process differences in payment.
The system links the tolerance values of the employees and the tolerance values of the customers and vendors via a logical 'AND'.
Employees that are not assigned to a user group have the tolerance group '__'.
Customer and vendors that are not assigned to a tolerance group, have the tolerance specifications of the tolerance group '___'.

20. Manual Cash Discount Adjustment
Tolerances for users
Upper limits for posting procedures Cash discount per line item 5,000%
Invoice Cash Discount Incoming Payment Difference SKT 40 /
If the difference in payment is too large, the system cannot adjust the cash discount automatically.
In this case, you can:
adjust the cash discount manually
post a residual item.

21. Classification of Payment Differences
when Clearing
Reason Code OR
New Item
Payment difference charged off
on separate G/L account
Each item on the payment advice can be classified with a reason code in case of underpayment. By each reason code it can be determined how the payment difference is handled. If the write off indicator is set for a reason code, the payment difference is charged off using a separate G/L account. The account and posting rules for each reason code are determined in customizing (chart of account dependent). Non-setting of the write off indicator triggers the generation of a new item for the outstanding receivable (residual item).
The reason code also determines which correspondence type for the payment notice is sent to the customer.
The disputed item indicator which can be set for each reason code controls the update of the credit limit. If the indicator is set, the credit amount used by the customer is not increased by the residual item.