Accounts payable is one of the application component in SAP financial accounting module. The Accounts Payable application component records and administer accounting transactions data for all vendors/suppliers of the company. Each vendor master in the system is treated as subsidiary ledger, where a reconciliation g/l account for payable is assigned to each subsidiary ledger. Postings made in Accounts Payable simultaneously recorded in the general ledger accounts. Different general ledger accounts are updated, depending on the nature of transactions involve such as payables and  downpayments.

Accounts Payable application component is also an integral part of the purchasing system (MM module). Deliveries and invoices from vendors are managed and monitored according to vendors. Moreover, the Cash Management application component is automatically updated with data from postings of invoices that could be used to optimize the liquidity forecast of the company.

Accounts payable postings can be done directly through FI postings or it can be done through MM invoice verification; as explained below:

• FI direct postings – purchases that do not originated from PR or PO are posted directly in FI-AP transactions. Transaction code that can be used could be FB60 for SAP enjoy screen or F-43 for complex postings. The normal document type use for these postings are DR (vendor invoice) with posting key ’31′ for vendor line item entry.
• MM Invoice Verification (MIRO) – Instead of posting the invoice directly in FI transactions, it can be posted in Material Management  using the invoice verification transaction (MIRO). This is very important if the vendor’s invoice have originated from PR/PO transactions in MM. This transaction automatically generates Financial Accounting document. The accounting document contains the invoice amount which is credited to vendor’s account and debited to GR/IR clearing account. From the accounting document posted, you can drilldown the original source; go to Environment menu the select ‘Original documents’.

On the due date of the vendor’s payable, the accounting assistant posts payment to vendor using either manual payment (F-53) or Automatic Payment Program (F110). Once payment is generated in the system, the vendor’s payable is cleared.

You can display the vendor’s line item transaction using FBL1N. To narrow the data to be displayed, filter the documents either ‘Open items’, ’Cleared items’, or ‘All items’. Furthermore, you can filter the type of documents to display; ‘Normal items’, ’Special GL transactions’, ‘Noted items’, ‘Parked items’, ‘Customer items’.