SAP ERP PICTURES

ERP.PICS is a dedicated website classifying SAP ERP visuals (cheatsheets, flowcharts, process diagrams etc.) by system and process.

Supplier Payments Process Flowchart in SAP Business One (B1)

Supplier Payment Process Flowchart in SAP Business One (B1)

Picture Description

This flowchart outlines the end-to-end process of handling supplier invoices, from receiving them to making payments, all within the SAP Business One (B1) system with some external steps. It includes approval workflows and options for editing documents if rejected during the approval process.

Flow of the Process illustrated in the Flowchart:

  1. Start (Task 1): The process begins outside of SAP B1 with receiving a physical supplier invoice.
  2. A/P Invoice (Draft) (Task 2): A draft of the Accounts Payable (A/P) invoice is created within SAP B1. This is based on a Goods Received Note (GRN) or is a standalone invoice.
  3. A/P Invoice Approval (Task 3): The A/P invoice is routed for approval within the SAP B1 system.
  4. Decision: Edit Document? (Task 4):
    • YES: If the invoice is rejected during the approval process, a decision is made to check whether the document can be edited, then the flow goes to the Edit A/P Invoice step.
    • NO: If the rejected document cannot be edited the process ends (Process End – Task 5).
  5. Process End (Task 5): If a rejected A/P invoice can’t be edited, the draft is closed, and the process stops.
  6. Edit A/P Invoice (Task 6): If the invoice can be edited after rejection, it is edited within SAP B1 by the initiator of the document, and then resubmitted for approval again.
  7. A/P Invoice (Approved) (Task 7): Once approved, the initiator is notified via SAP B1 and the invoice is added to the system. Relevant journal entries are generated (Debit: Expense, Credit: Supplier).
  8. Alert (Task 8): Finance team alerts can be set up in SAP B1 to notify of all due invoices to be paid.
  9. Supplier Ageing Report (Task 9): A report is generated to show the aging of outstanding supplier invoices.
  10. Outgoing Payment (Draft) (Task 10): Based on the due invoices, a draft outgoing payment request is created in SAP B1. Based on their approval matrix and policy this payment will be sent for approval.
  11. Outgoing Payment Approval (Task 11): The outgoing payment is sent for approval within the system using SAP B1 message alert.
  12. Decision: Edit Document? (Task 12): * YES: If the outgoing payment is rejected, the process checks if it can be edited. If yes, it proceeds to Edit Outgoing Payment. * NO: If the payment can’t be edited it goes to Process End
  13. Process End (Task 13): If the outgoing payment cannot be edited, the draft is closed and the process halts.
  14. Edit Outgoing Payment (Task 14): If the rejected outgoing payment can be edited, it’s revised by the initiator and resubmitted for approval.
  15. Outgoing Payment (Approved) (Task 15): Once approved, the approver is notified via SAP B1 and the payment is added to the system. Relevant journal entries are generated (Debit: Supplier, Credit: Bank).
  16. Remittance Advice (Task 15A): Optional, if requested a remittance advice will be generated and printed.
  17. Make Payment (Cheque or Online Payment) (Task 16): This is the final step outside SAP B1, with the physical payment made to the supplier (via cheque or online transfer).

Leave a Comment