AP/AR CONTROLS

some controls practised in SAP ERP Environment

1.AR Controls

1.Credit limits are set for each customer when billing exceeds credit limit  billing will be stopped

2.When cheque gets bounced the account of the customer will be locked unless and until he gives a dd in lieu of Bounced cheque

3.When the customer master does not have have Valid TIN &CST dealing with such customers are stopped  in order to have customers who are registered dealers

AP Controls

1.Budget limit is set for each activity when bill booking exceeds budget bill cannot be booked unless Budgets are Revised

2 In case of Raw material Purchases Controls are made to ensure that bill is passed after checking Basic Rates with Purchase Orders and  being evidenced by a good  Receipt Note

few controls are highlighted for your reference