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. Vendor Document Automation for Accounts Payable Processes

    Published: 14/October/2020

    Reading time: 5 mins

    Managing accounts payable and vendor invoice processing can be streamlined by applying automation. Reductions in human error, faster invoice processing times, and decreased labor costs are just some of the benefits that can be gained by using vendor document automation (VDA) software, which is offered as an add-on by many SAP certified suppliers. In this…

  2. 5 KPIs You Should Track & Share Within Your Organization

    Published: 26/February/2020

    Reading time: 1 min

    Creating a highly efficient and effective AR process requires an alignment of all the parties involved. That’s why getting instant access to the most relevant KPIs is so invaluable—but which KPIs will provide accurate insight into your global AR performance? In this eBook, you’ll discover which figures and data will provide the most benefit for…

  3. Building A Business Case For AR Automation

    Published: 22/October/2019

    Reading time: 1 mins

    This whitepaper will explore the historical progressions in technology, and most importantly the emerging technologies that can deliver the most value to small to medium enterprises running SAP ECC, SAP HANA and SAP S/4HANA.

  4. How SAP Shops Can Mitigate the Risks of Accounts Payable Compliance

    Published: 17/April/2019

    Reading time: 7 mins

    Accounts payable (AP) automation is supposed to save SAP customers money, but developments in digital tax may well make it a source of penalties and supply chain interruptions. With tax authorities all over the world seeking to increase revenues and close tax gaps, AP is becoming a new target for audits. Many SAP customers probably…

  5. How To Enable Efficient, AI-Driven AP Processes In SAP Environments

    Published: 20/February/2019

    Reading time: 1 mins

    If Michael Phelps never timed his 100-meter butterfly, how could he ever tell whether he was improving? He couldn’t, because you can’t refine what you don’t measure. The same holds true for your organization’s processes — you can only improve th

  6. Speedy ROI from Automating Accounts Payable

    Automating processes to gain efficiency and competitive advantage is not new, but with today’s cloud-enabled solutions, it is becoming increasingly effective for organizations. At the co-located Financials 2018 and GRC 2018 conferences in Las Vegas, SAPinsider spoke with Annie Schrenk, Director, Sales and Marketing, and Ethen Schachle, Senior Director, Product Management, at Top Image Systems,…

  7. How Accounts Payable Can Improve Fraud Detection with Robotics and Machine Learning

    Published: 01/February/2018

    Reading time: 10 mins

    Panelists: Brian Shannon, Dolphin, and Ingo Czok, Hanse Orga Group Date: Thursday, February 8th Sponsor: Hanse Orga Fraud prevention and compliance are pressing issues for global organizations. Read the transcript to get advice on how to optimize and centralize Accounts Payable and Payments processing to improve compliance and reduce the risk of fraud. By applying…

  8. Insights on Managing Cash Flow and Generating New Revenue with AP Automation

    Published: 19/October/2017

    Reading time: 6 mins

    In recent years, automation platforms have matured and become more common for businesses. Companies that leverage technology for accounts payable (AP) automation, specifically, can perform at optimum levels when they achieve a high level of automation in critical business processes, such as AP invoice management. During a recent SAPinsider Live Q&A, Esker’s Dean Bearman, Business…

  9. Ease Reporting by Enhancing Your Security Deposit Conversion Process in FI-CA

    Published: 20/March/2017

    Reading time: 14 mins

    Learn about the enhanced functionality of the security deposit conversion process based on security deposit request reasons in SAP contract accounts receivable and payable (FI-CA). The enhancement involves the posting of security deposits in the SAP system so that they can be easily identified on the basis of request reasons through standard SAP reports. The...…

  10. 5 Reasons Your Controller Needs Accounts Payable Automation

    This video is hosted by SAPinsider and sponsored by Top Image Systems.  As the financial front line of your business, your controller values three things above all others: cash, control and compliance. Manual accounts payable processes threaten a Controller’s handle on the “Three C’s”. This threat increases the closer we get to a truly digital…