SAP AR AP


SAP AR AP: An Overview and Key Considerations

What Is SAP AR AP?

SAP AR AP represents the accounts receivable and accounts payable sub-module components of the SAP Financial (FI) module and helps maintain financial relationships with vendors and customers, as well as manage their accounting data. The SAP accounts receivable sub-module (FI-AR) handles customer invoices, approvals, and incoming payments, enabling organizations to access reports and forecasting features for tracking customer outstanding balances. The SAP accounts payments sub-module (FI-AP) manages vendor invoices, approvals, and outgoing payments to provide organizations with the necessary information for tracking outstanding balances belonging to vendors.

SAP AR AP: An Overview and Key Considerations

What Is SAP AR AP?

SAP AR AP represents the accounts receivable and accounts payable sub-module components of the SAP Financial (FI) module and helps maintain financial relationships with vendors and customers, as well as manage their accounting data. The SAP accounts receivable sub-module (FI-AR) handles customer invoices, approvals, and incoming payments, enabling organizations to access reports and forecasting features for tracking customer outstanding balances. The SAP accounts payments sub-module (FI-AP) manages vendor invoices, approvals, and outgoing payments to provide organizations with the necessary information for tracking outstanding balances belonging to vendors.

SAP AR AP plays a significant role in providing organizations with end-to-end financial management. Finance and accounting teams can streamline their financial processes and improve their overall financial visibility by preventing duplicate inter-company AR/AP postings.

Additional key benefits for SAP AR AP end-users include:

  • Improved cash flow
  • Better budgeting and forecasting capabilities
  • Enhanced decision-making capabilities
  • Improved customer service
  • Streamlined operations.

Key Considerations  

Consider options to enhance SAP AR AP capabilities with a move to SAP S/4HANA. SAP S/4HANA Cloud, enabled by in-memory processing and simplified SAP Fiori interfaces, offers extended SAP AR/AP functionality. As a result, organizations can expect improved performance and faster response times when executing financial transactions, with all postings across the SAP AR AP function updating to the SAP General Ledger (FI-GL).

Leverage SAP AR AP best practices to streamline operational processes. The SAP Best Practices Explorer provides standardized essential process flows to help lower the cost of operations and deliver business benefits across multiple geographies, divisions, subsidiaries, and ledgers with global and country-specific content. For example, organizations can realize cost savings by centralizing account receivables and account payables processing, allowing finance and accounting managers to enforce governance and common standards, supporting compliance efforts.

Enable operational efficiencies with SAP AR AP automation. Organizations can save time and money by reducing the workload of finance and accounting teams when AR/AP automation is improved. In addition, core business functions, such as order-to-cash and procure-to-pay processes, are more efficient when organizations significantly reduce the effort required for manual approvals with automation.

24 results

  1. xSuite Adds New Invoice Workflow on SAP BTP

    Published: 07/28/2023

    Reading time: 2 mins

    xSuite recently announced a new workflow solution for its core business, digital invoice processing, on the SAP Business Technology Platform. The solution offers standardized accounts payable processes on SAP BTP, transforming it into the foundation of SAP-based business processes. Organizations that centralize and automate payment processing requirements are able to cut down on manual processes.…
  2. Delego’s Five Steps To Get Customers To Pay Invoices on Time

    Published: 07/17/2023

    Reading time: 2 mins

    No matter how well-orchestrated an accounts receivable process is, sometimes customers will simply fail to finalize payments. Some customers may want to hold onto liquid capital as long as possible, others may have overworked finance teams who forget or misplace invoices, while some may just consider making payments a low priority. Without the risk of…
  3. IPS and CSI Edenred Announce New Name and Brand Image: Edenred Pay

    Published: 07/07/2023

    Reading time: 2 mins

    Following its October 2022 acquisition by Edenred, IPS and CSI Edenred are now fully merged. The company will now be known as Edenred Pay going forward. In a press release, the company revealed its new name and brand image on its new corporate website. “We are excited to announce our new name and brand image,”…
  4. Accounts Payable

    From Manual to Automated: The Benefits of Invoice Automation for Accounts Payable

    June 15, 2023

    Join us for an exciting webinar on the future of accounts payable invoice automation, presented in partnership with SAPinsider. AP teams face increased pressure to do more with less in today’s fast-paced business world. Manual invoice processing can be time-consuming and error-prone, leading to delayed payments and strained vendor relationships. Recent SAPinsider benchmark research reveals that 76% of…
  5. AP Automation – What, Why and How?

    Published: 05/09/2023

    Reading time: 4 mins

    Accounts Payable is one of the most important aspects of any SAP organization. Ensuring that suppliers are paid on time keeps the business running smoothly. Yet many companies are still running this crucial part of the business with too many manual touchpoints. Each touchpoint opens the company up to human error. It can also be…
  6. ap invoice management

    Automating AP Invoice Management – Benchmark Research Report

    Published: 12/29/2022

    Reading time: 2 mins

    Reducing operational costs and increasing productivity requires strategies for automating accounts payable (AP) invoice management, as manual or partially automated processes no longer provide efficiency. An expanding digital economy and increased competition require organizations to have efficient processes to support and maintain supplier relationships and keep pace with industry peers. With a hybrid workforce and…
  7. Serrala Talks Payments Modernization and Automation

    Published: 08/04/2022

    Reading time: 1 mins

    Regarding process improvement, there are many initiatives that CFOs and treasurers can tackle to increase efficiency and optimize performance. One such initiative is automating manual processes – an area particularly relevant for Accounts Payable (AP) teams. By automating manual and paper-based processes, AP teams can gain greater efficiencies and improve their overall performance. In addition,…...…
  8. 4 Ways in which SAP S/4HANA can pull A/R out of the back office

    According to recent SAPinsider research, 77% of their audience are evaluating or have made the move to SAP S/4HANA. Migrating to SAP S/4HANA will improve business processes by offering teams real-time connectivity to all lines of business, from finance, supply chain, and manufacturing to sales, distribution, and more. Receivable teams need to stay agile and…
  9. The four indispensable FI-AP tips and tricks every SAP customer needs to know

    Make your FI-AP processes run more efficiently and help your users be more productive with 4 indispensable tips and tricks. Understand your choices for using special G/L indicators. Learn the differences between internal and external vendor GR/IR accounts and learn how to pick the right option that best reflects your business situation. You will -…
  10. How BORUSAN CAT automated incoming invoice processes

    Managing incoming invoices is generally a complicated process for the companies. Invoice approval/rejection process must be handled by the cooperation of the relevant business units who procured the service/product. Printed invoices has the risk of getting lost. Invoices should be recorded to the SAP ERP system on-time and error-free. By attending this session you will…