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On line purchasing through credit card

ankurch
Active Contributor
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What can be the possible process we adopted to implement the online purchasing through e commerce websites using the credit card integrated with P2P cycle in this process. what is the accounting configuration required to achive this process.

Please Help...

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Answers (1)

Answers (1)

former_member619089
Active Participant
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Hello Ankur,

Are you talking about the sales process or the purchase process? Because this sounds little different then that you have this process in purchase.

If it is a purchase process than explain the execution process at business level.

Thanks

jagdeepsingh83
Active Contributor
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Ask basic questions, How many employees are using credit cards ? What is total spend per month ?

If per month spend is too much think considering Abriba or SRM implementation .. Easy way.. Make limit that amount exceed certain amount have a purchase order created by user .. No GR but Invoice need to be posted . post the General Voucher at end of the month directly in FI.

other way when statement comes.. create the PO for credit card company and clear payment on monthly basis.

See what is business utilization and overall advantage.

ankurch
Active Contributor
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it is for purchase process...

ankurch
Active Contributor
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it is for purchase process and and basically its for online purchasing for the organization..throough e-commerce..,where payment has to be made before delivery..

jagdeepsingh83
Active Contributor
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Financial JV posting.. this is only solution

michele_williams
Participant
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I am looking to implement a similar process. From my research it would appear that SAP Business One offers the possibility to record credit cards in vendor invoices, normal SAP ERP does not.

We use corporate purchasing cards, which are company-paid. Card holders complete an expense report in the bank's portal and code the transactions to GL accounts and cost centers. We upload these transactions into SAP against the vendor master for the bank which issued the payment cards. This works OK, but the expense is not recorded against the actual vendor, nor is it possible for us to track spending against a purchase order. This makes reporting difficult; particularly with respect to 1099 vendors.

So this is what I am proposing in my environment, I welcome comments on it:

  1. Create a payment method, e.g. 'V' for Visa in FBZP and configure it to post to a credit card clearing account, in AP range of general ledger
  2. Assign this payment method to vendor masters
  3. Enter purchase orders against these vendors (for us, these will typically be "blanket" POs, account assignment 1, against GL expense account and department cost center)
  4. Enter AP invoice for goods/services (may have to ask your requisitioner to provide this to AP, e.g. if he purchased goods online). Invoice will debit the expense and credit vendor AP.
  5. Perform a payment run for payment method V, which will debit vendor AP and credit the AP credit card clearing account. Note that this payment run will not be sent to a bank.
  6. Meanwhile, the requisitioner used his credit card to pay for goods or services.
  7. He logs into the bank's portal and completes his expense report, coding the purchases to the AP credit card clearing account (as opposed to the real GL expense account)
  8. We upload these transactions into SAP as a vendor invoice against the bank's vendor account. This debits the AP credit card clearing account and credits vendor AP for the bank.

As you can see with this proposed scenario, there is no need for manual journal entry. Again, I welcome feedback on this process.

ankurch
Active Contributor
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I achived this using the down payment method,... through this method you can pay to the vendor after creating the purchase order, then u made advance payment, after when the material actually arrives to your plant location then u do the Goods Reciepts and invoice reciecpt, while invoice reciept you can clear the down payment.

According to me this is the best process.

sanan123
Participant
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Hello Ankur,

Can you please let me know what steps you achieved for this process. Currently my client is buying most the Products through credit card and I am not sure that we need to create Credit card vendor? and also GR is mandatory for down payment PO?

Thanks,