 Right so in this lesson we're going to just look at a sales order and how a sales order relates to an invoice to get some orientation of these logistics documents so that when you do create invoices related to sales orders that you have an idea where the data is coming from and how the accounting decisions are being made. So the transaction code is VA03 display sales order and we're just going to look at an existing sales order and navigate around some of the accounting and invoice relevant fields on the sales order and in the document flow to give you some perspective. So here's some of the marta data associated let's jump into the detail. So what we're going to do now is to display a sales order so we need to go into the logistics menu not accounting and then go to sales and distribution and over here this is where we'll then find sales and we'll find our order menu and this is where you can then display the sales order or VA03. So once we click on that we need to enter an order number or search for an order so here I'll use an existing order that we have in the system and when the screen pops up you first have got a header overview and letting us know that there are some subsequent documents which I'll explain later. So here we've got the Sol2 party, we've got the customer purchase order reference number, we've got the material that's being built, we've got the quantity of the material and a description of the material. And here we have different sections, we've got the header detail and we've also then here I've got the item details. So we're going to first explore the header details and show you some relevant fields of the header of the sales order. So in the header we've got things like what is the sales order type, in this case it's called OR standard order, the sales area, distribution channel and division. These are three key fields in the sales and distribution module that can be useful for reporting. There's our document currency, US dollar, here's who created the order and just a lot of good information just about the general area of the sales order. If we look at the accounting view, one of the key fields here, this account assignment group, this determines the general ledger account for revenue. Here we've got domestic, foreign and affiliate or intercompany. So in this case this is domestic revenue, so it's a quite important field. And this is the company code that's going to get built 1710 when this goes through. So you can also have this concept of different header conditions. And these are sales conditions that apply to all of the items in the order. Here we don't have any item specific conditions, but we can see the main pricing condition and tax of the order all up. And we'll see the same details on the line item. And so for the next area, let's jump to the status tab and just have a look at the status of the order overall. Look at the status, this order is completed. Nothing has been rejected. And if we have a look further down here, we can see that it's been fully invoiced and everything is complete on this order. So there's just a sometimes a good reference point. So if we go back now, let's have a look at a line item. So remember you can have multiple line items on the sales order. Let's pick one of them and go into the item details. So here you see more detail of the material, the quantity, etc. And we can actually go and then look at the billing document detail. And here we can see the payer. So we had a Sol2 party on the first screen. Now we know the payer is the same. Here we've got the income terms. We've got payment terms. And we can see the date at which the billing is valid for this order. And here's a tax classification as well. There is a useful ability to follow up with. But mainly the payer and its details. If we click on the conditions here, this is a much more detailed pricing screen for how the price is made up. You'll see we've got a per unit and then a total price with the quantity, so 120 price per unit. And here we can see the tax was at 4% to get the value. So there's a lot more detail information about the pricing. In fact, if you display an individual pricing record, which we'll do here, you'll see that that price of 120 gets derived from a combination of the sales or the distribution channel and the material, leaving us 120 per hour. So this is just some background for you to click around and understand how these prices or these values are actually getting into the order from the pricing condition record. We look at the account assignment tab. You'll see this is where our profit center is coming from. And our profitability segment here, again, is also derived in the sales order where we'll get information like the customer, the product, the company code, the plant sales, or all this information is derived automatically when something is posted from a logistics document. This is the main advantage over a manual invoice is that you get a lot more rich data because of the sales document. And again, each item also has its status whether it's complete or not, because again, if you have multiple line items, they could have different statuses. So now let's have a look at this document flow. If we have subsequent documents, if you click on the document flow, then you'll see a flow of what's happening with this order. So this order number 44 has had some preceding orders that it's been referenced or copied from. This is the one for 66 hours and it is complete. And here we have the billing documents complete, but the invoice is open for cash receipt. That's why it's not clear, but the main concept is there's three different documents here. So let's have a look at this billing document which you haven't seen before. So this is the billing document from the sales order. And if we look at this, it's also got a header and it's also got line items. And this carries information inherited from the order. So let's look at the item details here as an example just so you can see that the billing quantity, other information in this order, if I scroll around here, you'll see this is the same information that you were seeing in the sales order gets copied to the billing document. And the billing document is then the invoice for the customer and is the basis for the accounting posting. So when you scroll down here, you'll see lots of rich information here. We've got the country, tax restriction code, the tax classification of the material, i.e. if it's a good or a service, the region, et cetera, account assignments, all of this detail gets copied from the sales order to the billing document. And same with the pricing conditions. If you look at the header as well, you'll see a lot of similar information as we saw before from the head of the sales order. And here you can see the account assignment again and also has the posting been successful, posting status is successful. If there was an error, you would see that here as well. So just remember that there's a sales order, there's a billing document, which is what we're looking at now. And then there's the accounting ledger entry. And here we have another bit of information, tax classification of the customer is also useful. So just to give you some data points or things to look out for. So if we click back now, we go back to the document flow, you'll then see the actual accounting document. So if we display this document, this is the actual general ledger entry. So here you'll see the actual debits and credits. So debit to the customer, credit to revenue, credit to tax based on that tax condition. So the preceding documents drive what's in the journal. So we'll just click back to that. So just remember again, we've got the order, we've got the billing document, and then the actual accounting journal entry to accounts receivable. But it's important to remember that relationship. Again, the billing document is the main driver. And if you go to the billing document as well, and you there's also a thing here, you can look at how the revenue accounts were determined. You'll also see that that GL account revenue is actually a combination of this customer and a customer group and account key combination. And you'll see here that the general ledger account was determined because of the sales organization, this account assignment group domestic and this account key. So these are just useful little tips and tricks to pick up that if you wanna know how does an account get arrived, this is how you can find out that information from the billing document itself. So we're just going back to the documents flow now, go back to the order, click back again, and you can then go back to the main menu. So that's how to navigate your sales order and get some good orientation as to the key features that you should be looking for in a sales order. So as an overview, remember, you've got a document flow where you can look at the subsequent documents. In our example, there wasn't a delivery before the billing, but remember after the order, you often have deliveries, billing invoice, and the invoice is what generates the accounting document itself. On the header tabs, these are the ones we navigated to look out for many pricing conditions or the most important ones in the status and under the item detail, again, conditions and account assignment is important there. And then the billing document as well, tax classification of the customer and the material helps drive the detail. And remember, most of the details in the billing document are copied from the sales order and related documents. So now that you have learned to navigate a sales order and get your orientation, understanding the link between the sales order itself, the billing document, and then the final accounting document, let's have a look at how you actually create that invoice or that billing document from the sales order. The transaction code we're gonna use here is VF04. This is to be able to process what's called the billing due list or to create mass processing of billing documents. VF01 can also be used if you just wanna create a single document. So the scenario here is we wanna create AR invoices from sales orders that are relevant for billing. And then after that, we're gonna display the billing document and related accounting documents for the invoice. So the martedata, although we're gonna run the billing due list for multiple orders, we're just gonna invoice this one order here, number 45. And this is just some martedata describing the price and the quantity that we're gonna be invoicing. So let's go ahead and look at that. So in this system, we will need to go to the logistics module, and here we'll go to sales and distribution. And this is where we created the sales order originally under the sales tab. This is where we did the sales order creation, but for billing, you're gonna have to go to the billing folder over here, and here you will go to the billing document, and here you'll see the single billing document create, or we're gonna show the billing due list, the VF04, which is the most common one. So here in the billing due list, there's a selection criteria. So here we'll put in sales organization 1710. And here there are different types of billing order related or delivery related, ours is order related. So we're just gonna display that to run the items. And here we have two orders that are relevant for billing. So we're just gonna pick a, you can either pick them all and just go post and post all billing in one go, mass processing, or we can just pick a single line for this demo. We'll just pick one line, this order here, and we'll see this is a one for 18,000 here. I'm just gonna click save, and then this will automatically create or post the invoice. So when the system finishes processing, it'll tell us that it's processed the documents, and there's a group in case you had multiple documents. If we just click here, display the documents in that processing group here, we have one document, and there's our billing document here in the nine series. So we select that document, and we then just display the document. This is branching into displaying the billing document. We shall recognize. So there we have the nine series billing documents, and here we can see the amount, the 18,000. We can see the partner, and we can also branch the accounting documents if we need to. So let's click on accounting documents here. We have the financial accounting document and the CEO document for controlling. So let's just look at that accounting document. Remember, the accounting document is different to the actual billing document, because this is the general ledger side of it. So in the general ledger here, we can see our credit to revenue and tax, and this is the actual financial posting. If we double click on the line item there, you'll see you're 18,000 again. And for the details, let's go back to the overview. So remember, this is the accounting document, and if I click on the header there, you can see this is created from BF04. So that's how you know that it's an automated invoice. If we look at the CEO or the controlling document, just for interest, you'll see this is where the profitability segment is stored. If I just click on the master record there, this is all of the rich metadata that's now been collected from the sales order that also comes with the transaction instead of just a profit center. And now we can just click back. This is just a way to show you how the accounting documents are related to the billing document. So if we go all the way back now, I just want you to go and display the sales order. If we display the sales order, you'll see that once we enter our number, it will tell us that there are now subsequent documents for the sales order because it's been invoiced. So just get the number in there and press enter. Okay, there we go, order number 45. And here you'll see that it says consider subsequent documents. And if we look at the document flow, you'll see here we have the order, we have the billing document, and the accounting document. So if you go back and back to the main menu, then that's it. So that's how easy it is to create an invoice. So now that you've learned how to create an invoice, we're just gonna cover again how to display and potentially change invoice, what can be changed, and also how to change the related accounting document if necessary. So the scenario is display a billing document that's linked to a sales order, navigate to the accounting posting, and change some text on the billing and the accounting document. And we're gonna use the billing document posted in the previous lesson. Remember SAP won't let you change any billing logistics information or accounting details because you need to always preserve the related trail. Okay, so if we go here to the billing document, this is where we did the billing due list or created individual billing document, and here are the display and change transactions. So let's start with that display transaction, and here we've got the billing document from the previous lesson, and we're gonna enter that in, and have a look at the billing document, and here you can see we're looking at the billing document itself, and that's the number that we had before, the material, the description, and that value, that 18,000. So that's just the basic display of the billing document which you're now familiar with from the other transactions. So now what we can do is we can look at the document flow, and again just to reiterate, we have a sales order, a billing document, or invoice, and the accounting document, three separate documents in the system, and right now we are displaying that billing document. So if we just go back to the billing document itself, remember we've got the header details. So let's have a look at the header, and all the information here you'll see is gray. This is all that logistics information I mentioned. We can't change any of this information in order to preserve the order trail and not impact the change on the order. That's why these fields are grayed out. But so if we have a look further, for instance if we look at the header text, this is something that we could change. So right now while we're in display mode, if I just open it up in display, this is a text billing note to the customer, you'll see that it's gray and we can't change it right now. If we simply go back one, the back arrow, and then here click this change button, you'll then see we then get the change billing document which is the VF02, and now if I do the same thing, if I click on the header and I click on the text, you'll see the text note is now white and I can now update the text. So the only very limited things you can change on a document offered is posted and text is one of them that could be a common thing to change and this would impact either a note or something that you need to print out. So let's just save that and now we can see the changes have been saved in that billing document. And so now we can just simply go back into it. And if we look at the accounting documents that are related to the billing document, remember we've got that concept, let's have a look at the actual accounting or the general ledger entry. Remember accounting document is different to the actual billing document number. So click on the accounting document, I'm in display mode now, and this is the general ledger view, we have got my credit to my revenue. And if I double click on that, you'll see again all these fields are gray, they can't be changed to preserve the audit trail. But if I click in change mode, again certain boxes turn white and text is one of them that you can change. So here's just an example of updating some text and that I can't change any of the amounts and I'll just click save. And that's just a simple change to the accounting document itself. And if we look at the document flow, remember here we've got the order and we've got the invoice and the accounting document. So we were looking at changing the billing document which we just look at now which is separate to the accounting document, just really reiterating that concept. So if we go back now to the main screen and just remembering there's the accounting document that we changed. Okay, so let's now review the document flow and then going back from that, we can just really now go back to the main menu. And that's basically really the display and change transactions, you'll see the VL02 and VL03, we branched into them from those other menus but you can also go into them direct. So now that we've looked at that, let's have a look at the reverse scenario. So the billing document reverse, there's a different transaction code, VF11 to reverse or cancel a billing document. The scenario is here, you have a customer invoice that requires cancellation, you need to manually cancel it in error and remember this is linked to your sales order billing document. This is why you need this specific transaction and we'll use the order posted in the previous lesson. And again, noting SAP is not gonna delete the existing invoice. It's gonna preserve the audit trail and you're gonna get a new contract document posted to net out the original but still linked to the original in the document flow and we'll see that. So let's go ahead and look at that. So for the reverse side of the transaction or cancel where we created the document with VL04, VL01, we did some changes, VF11 is the cancel. So we'll click into that, you enter your billing document number and you can highlight the line and you can display it first just by clicking display to make sure you've got the right document. So here we've got our 18,000, we confirmed it's the right document. You can go back and just go ahead and go back into that cancel transaction. Now we know we've got the right document. You simply select a reversal reason. So here we're gonna say wrong posting, it's a dummy reason, highlight the item and then you simply post. So really it's as easy as that to process a cancellation. And what you'll notice is you get a new document created and this is a new billing document. So let's go back from that. And now what I want you to do is to go ahead to display that billing document and here you'll see we've got a new billing document number and if I display that billing document we come up with the billing document display and then what you'll notice if I click on the accounting, sorry on the document flow, we've now got an invoice cancellation as part of that document flow. So we've got the original invoice, a cancellation and an accounting document for the cancellation. So let's display the cancellation accounting document and here you'll see we've got a debit to revenue. So this is the contra for the original credit. So this is where you have that contra document and this is a quick link to the reversal documents so you can see it's very easy in the ledger to jump between the original credit to revenue that we see here and jump back to the contra or the debit to revenue that we've just created. So we go back against the document flow, you'll see again that relationship where we have the invoice original, we've got the cancellation and there's an accounting document associated with that cancellation. And so with that we can just go back to the main menu. There we go and it's really as easy as that to cancel a reversal billing document. Right, now that you've learned how to post different kinds of invoices, let's have a look at some basic reporting. In this lesson we're gonna look at the displaying a customer account balance for a single customer and drilling down to its line items. Then we're also gonna look at just displaying line items directly for a single customer or multiple customers. So in this scenario, you can also look at the account balance by fiscal year, specifically analyzing debits, credits and cumulative balances. We're also gonna show how you can drill down to the original invoice line item and also do some quick filters as an example for overdue items. The master data we're gonna use our company code 1710 and primarily focus on this domestic US customer. So let's jump into the demo. So under the accounting menu for accounts receivable, we've had a look at the under financial accounting, accounts receivable and we focused originally on document entry, which was how do we enter? We focused on documents itself, display, change, reverse and now we're gonna look at the account and this is where the basic reporting is. So the main ones are display balance and display line items. There's also this line item browser that's only applicable if you've got HANA. So let's actually focus on these two specifically because they'll be the same in both. So we start with the account balance, you enter your customer account number, your company code in your fiscal year and then execute. The report comes up. You first can see by each period, periods one through 16, the balances, debits, credits and the cumulative balance. And we take a particular period that's context sensitive and where you drill down. As an example, if you double click on debits, you will then only get the debits. So that 81,000 there, double clicking on that, this is now the breakdown, sorry, of the 83,000. So this is then the total that you get to see. And these symbols show what is open and what is clear, the red and green and another key field is the document type. You can see different document types here, the RV for automated invoices, we've got the due date symbols, we've got the payment terms and various other items. Let's just carry on through now. Just notice if you double click on credits, you only get the credit total, which is very useful. And you'll see if I double click on cumulative balance, I'll actually get the total of that 121,000. So depending on where you click in the report for drill down, you get the line items associated with that particular drill down. So let's have a look at the document types again. So if you take a particular document type, this helps you identify where the transaction is coming from. So double click on this DR, which is a manual invoice. If I look at the header, you see there's this customer invoice and here the transaction code is showing FB01. And if I kind of go back and I look at the environment, document environment, if I try to look for an original document, you'll see there's nothing preceding a regular manual invoice. But if I pick something like an RV document type, which you learned was a billing from a sales order where there's a billing document link, I just wanna show you that if you drill down on one of these entries here, there's more information. So again, it looks the same. I've got my, you know, creator revenue debit to customer. But here if I click environment, document environment, original document is now lit up. If I click on that, you'll see I can actually drill back to the original document, which is a billing document in this case. And remember from the previous lessons have you learned, the main thing with the billing document is you've got header and line item detail. And if I look at the line item detail of the billing document, all of this other rich metadata is what you get in addition when you've got a logistics billing document related to sales order versus just a manual invoice. So just to remind you that when you drill down, you can get back to those original details and it depends on the document type. RVs are connected, other ones are not. You can also then use a sort and filter here as examples of sorting by document type could be useful or the filter. So if a filter for RV as an example, you use only automated invoices linked to billing. So that's a pretty useful just to be able to do that type of analysis. So let's just take out that filter and to give you some other ideas about what you can do. This example, if I look at the due date symbol, if I want to analyze that, this is the payment terms due date. The lighting bulb means it's overdue. These are the payment terms. Here's the net due date and how many days in arrears as an example. So to analyze this or to help do some kind of filtering, you can then pick a specific column and then filter for that column. So as an example, I could say for due dates over here, let me take this, I'm gonna filter, let me filter by overdue items. So if I overdue by the lighting bulb symbol, which means it's overdue and I run that, I'll easily get a filter of everything that's overdue and then I can follow up as an accounts payable clerk with that information. So just to give you a few ideas how you can work with a customer line item report. So I'm just gonna go back out to the main menu because we've been drilling down from balances to line items. Encourages to show you you can run line item report directly this FPL5N, enter the customer number and if I say show only open items and I run a report, you'll see I get exactly the same data I've just been looking at except I'm just running it having to specify a date or open items. And that's just the same data except you're running it directly from line items. But here you have the option to say show me all items as an example as well. And now you've got open and cleared items giving you the same total of 121. So the same information you drill down to from the cumulative balance before. But also here you can take out the customer number as an example just enter a company code and run this report for multiple customers. This is the main benefit of this over the previous report which starts with a period balances only for a single customer. Here you can look at multiple customers at the same time and sort and filter which is quite useful. So that's the customer account balance and line items. Reports and they're really useful for some quick analysis and basic core capability that you would need to understand for accounts receivable managing open items. So that's the end of this lesson. So in the previous lesson, we covered analyzing a customer account balance and drilling down to line items as basic reports. This next report we're gonna look at is how do you get an age analysis of open items? So this is the transaction code here or the report and this way this report analyzes open items and can break the report down into different age buckets. So here you can have for example, 30, 16, 90 days that things are due for cash receipts and to receive payments. You can also modify these day parameters that are there but we have some test ones in this test system. And then you can also drill down to those line items. So when you find a total in an age bucket for instance, 90 days overdue, you can then drill down just to see those items and you can also drag and drop some characteristics. So the main use of this report is we tend to look at all customers together and you can use company code 1710 and fiscal year 2018. So let's jump into this report. So under the accounts receivable menu again is where you're gonna go. Now the previous two reports were under account where we just looked at the balance and the line items but now we're gonna go to the information system menu where there are multiple reports but this is by far one of the most useful ones. We're gonna open that up to go to customer items and pick the very first one, due date analysis for open items. This is the report. So once the report runs, again, you can leave the customer account empty and just enter the company code is just a useful way to use the reports to see all customers, the open item due date and click graphical output for easier results and then execute that report. So the report comes up. You'll first see that there are a couple of different sections to the report. So we've got the each customer number in the top here to show the line item totals per customer. And then at the bottom here, we've got the breakdown of what's due, what's not due and what are open items and the totals for these amounts. So for instance here for Nizi or age buckets over here, so this amount is not a 30 days due and then this is one is 60 to 90 as an example, what's due and you get the not due and just total open items. And at the top here, we split this out to show everything that's due or overdue. So you can correlate the totals between the top and the bottom. So total open items are the 140, which is total over here in this due column. And if we looked at what was north to 30, 60 here, you can see that's the breakdown. Again, for the 60 to 90, we can see the breakdown to correlate the two. So it's a very easy way to manage the items. These are the additional characteristics that you can drag and drop. For instance, document type, if you just drag and drop with your mouse, you can break it down to the different document types. But the DRs are manuals, R&Bs are the automated documents. You could drop country as an example. Here we've only got customers in the US, so not that useful. And then you can drag a customer back. But the whole idea here is the stock box, you can analyze everything that's overdue or in this first column pretty easily. So take this here, everything that's due over 121 days, for example. And you can see it's the same bucket over here. We click on that item and then we say go to line items. We can then get the breakdown of what makes up those $1,500 that are way overdue over 120 days. So from the line item report, it's not as easy to see what that is, but when you drill down, you can see it much more easily. And remember on any invoice, you can always double click. You can go to the actual accounting document and by clicking on the header, you can see what type of document type it is. Any environment, document environment, original document lets you go all the way to the billing document. And just remember you've always got the document flow that you can click on if you need to see the relationship back to the original standard order. And here you can then even, you know, display that order if you want to. So just as a reminder that you can go all the way back and this is the main power of integrated SAP is you can go right from the original sales order and then draw all the way back to your report again. So very useful just to remember what you can click through so that you've always got the details that you need on hand. So this is a really good launch pad to be able to see what is important and then analyze or drill down from there by these different age buckets. And again, you can customize these buckets in your own particular system. And remember document type is a really good way as well to see automated documents versus manual ones. And yes, that's the main usage of this age analysis. Bucket report, really good way to summarize the data in buckets before you analyze so you can drill down more specifically. We can just come back to the main menu. So that's the next basic report that I would really recommend for the counter-ceivable starting point.