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A company receives an invoice for a vendor purchase. Explain the end-to-end
process in SAP FICO from invoice receipt to payment.

Invoice Receipt (MIRO Transaction): The Accounts Payable clerk receives the
invoice and enters the details in SAP using the MIRO transaction. The system
generates a vendor liability and a corresponding expense account entry.
Invoice Verification: The invoice goes through verification to ensure its accuracy.
The system checks for matching purchase orders and goods receipts. Any
discrepancies are resolved before proceeding.
Payment Run (F110 Transaction): Once the invoices are verified, a payment run is
executed using the F110 transaction. The system proposes invoices due for
payment based on defined parameters. After approval, the system creates
payment documents and accounting entries.
Document Posting: The payment documents are posted, which include debit
entries for the vendor and credit entries for the bank.
Bank Transfer: The company initiates a bank transfer to pay the vendors. The
bank reconciliation process in SAP FICO helps match bank statements with
payment documents.