Business Transaction Effect on the Financial Statement

[Former Member]

Hi Experts,

Please help me understand how the business transactions of the following has effect on the financial reports

1. Posting of A/R invoice in Balance Sheet and Profit and Loss Statement

2. Posting of A/P Invoice in BAlance Sheet and Profit and Loss Statement

3. Incoming and Outgoing Payments.

I am basically new to SAP and felt that the training I attended is not sufficient.

Thanks

Cheng

[Former Member · Accepted solution]

Hi Cheng,

Your question belongs to the basic accounting. It is not a SAP question.

In a simple answer, all A/P and A/R invoice posting will have direct effect on P&L. May be indirect effect on balance sheet.

Payments are more complicated because they depend on which accounts you are trying to post.

Thanks,

Gordon