Processing Invoices and Payments

Creating and processing Invoices using the SAP FICO platform is optimized for the entire financial transactions and processes. The functionality is interfaced with other related functionalities with the help of an object. Below are the important activities involved in processing Invoices and payments.

• How to create a Sales Invoice?
• How to Create a Foreign Currency Invoice?
• How to create a Foreign Currency vendor Invoice?
• How to withhold the Tax in vendor invoices?

How to create a Sales Invoice in SAP FICO?

In this process, you post an open item for any customer. The customer is to pay the invoice in cash. You then enter the payment in the cash journal.

• Enter the following details: Customer ID of the customer to be invoiced, invoice date, Amount for the invoice, Tax Applicable, and tax indicator.
• Enter the payment details like payment terms in Payment tab. Go to Details tab and enter the item details.
• Once all the details are entered, click the Save button to generate the document number.

How to Create a Foreign Currency Invoice in SAP FICO?

• You can post a vendor invoice in a foreign currency so that you can process a currency analysis. You should not post your invoice in MM but rather directly in FI. This makes it easier to post backdated invoices.
• T-code: F-43
• A new window will open. Enter the following details −
• After providing all the required details, click the Save icon.

How to create a Purchase Invoice in SAP FICO?

• Use the T-code FB60 for an incoming invoice or go to Accounting → Financial Accounting → Accounts Payable → Document Entry → Invoice.
• Enter the company code you want to post this invoice to and press Enter. It will open a new window. Enter the following details −
• Vendor ID of the vendor
• Invoice Date
• Amount for Invoice
• Tax Code for the Tax Applicable
• Tax Indicator "Calculate Tax"
• Go to the Payment tab and enter the Pay terms like pay immediately, after 14 days, etc.
• In Item details, enter the following details −
• Purchase Account
• Select Debit
• Amount of the Invoice
• Check Tax code
• After entering these details, click Check the Status of the Document and thereafter, click the Save button at the top.

How to create a Foreign Currency vendor Invoice?

In SAP FI, you can post a vendor invoice in foreign currency so you can do currency analysis. If you post in FI, you can directly post backdate invoices.

• Use the T-code F-43 or go to Accounting → Financial Accounting → Accounts Payable → Document entry → Other → Invoice → General.
• In the next window, enter the following details −
  • Document Date
  • Document Type
  • Company Code
  • Posting Date
  • Currency
  • PstKy
  • Account (Vendor)
• Press Enter and a new window will open. Input the amount, calculate tax, Tax code, PstKey, Account (Revenue account) and press Enter.
• The amount in local currency is displayed in the field. Click the Save button at the top and note the document number.

How to withhold the Tax in vendor invoices?

• Use the T-code FB60 and enter the company code.
• In the next screen, input the following details −
• Vendor ID of the Vendor to be Invoice and Invoice Date.
• Check Document Type as Vendor Invoice.
• Enter Amount for Invoice.
• Select Tax Code for the Tax Applicable.
• Select Tax Indicator "Calculate Tax".
• Purchase Account and Amount for the Invoice.
• After completing the above fields, click Withholding tax.
• Tax Base Amount
• Tax Exempt Account
• Withholding Tax code
• Click the Save icon and note down the document number to be generated.