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

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The flowchart provides a comprehensive overview “To-Be” Vendor Payments process in SAP from a real implementation project, detailing the steps from the initial selection of vendors for payment to the final execution of payments. Here’s a breakdown of each step in the flowchart:

  1. Input Data Gathering: The Accounts Payable (AP) team selects vendors scheduled for payment on a particular day based on these inputs.
  2. Generation of Report: The AP team generates a “Payment due report,” which lists all payments that are due.
  3. Funds Availability: If the funds are available, the process continues. If not, then some unspecified “necessary actions” as per company policy need to be taken. These actions aren’t specified in the flowchart.
  4. Payment Preparation:
    • Payment Data Entry: If funds are available, vendor codes and document numbers are uploaded in SAP.
    • Payment Approval: Payments must be approved by designated authorities before they can be processed.
  5. Batch Payment Processing: Payments are processed in batches for each entity of the company. The mode of payment, bank account selected for payment, and payment execution details are handled within SAP.
  6. Special Cases for Payment:
    • Payments to Third Parties: If the payment is to be made to someone other than the vendor, the company must maintain additional documentation to evidence that these payments are made based on instructions from the vendor.
    • Full Payment Assurance: Before making the full payment, it is verified whether full input credit (pertaining to taxes) is available.
  7. Final Payment Execution: Once all verifications are completed and approvals obtained, the final payment is made.
  8. Process Completion: The process concludes after the payment is executed and all transaction details are finalized in SAP.

This flowchart efficiently outlines the vendor payment process, ensuring compliance with financial policies, proper fund management, and accurate financial execution within SAP.

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