Account Receivable – Any transaction with a customer means that the organization expects some money is coming into the account. Account Receivable in SAP accounts for all accounting data pertaining to a customer. All postings in AR are captured in GL as well. The nature of posting identifies the GL Account to be posted to. All AR postings can be reviewed using different reports and programs.
Account Payable – Any transaction with a vendor means that the organization expects some money to out of the account. Account Payable in SAP accounts for all accounting data pertaining to a vendor. All postings in AP are also captured in GL. All AP postings can be reviewed using different reports and programs.
Can A Customer Be A Vendor? Short answer – Yes. Medium answer – Absolutely Yes. Long answer – as follows.
Business Partner – BP is an entity that has a business relationship with the organization. A BP can be a customer, vendor, or even both. The duality allows flexibility while eliminating the redundancy. This Customer Vendor Integration allows updates in BP by updating the Customer or vendor data and vice versa.