What is A/P reserve invoice in SAP SBO - SAP Business One?

SAP Term: A/P reserve invoice

Component: SBO
Component Name: SAP Business One
Description: A request for payment before the delivery of items to a customer. A reserve invoice is used when a vendor is concerned about the credit worthiness of a customer company.

Term: A/P reserve invoice
Component: SBO SAP Business One
Definition: An A/P reserve invoice in SAP Business One is a type of accounts payable document used to record anticipated expenses or liabilities before the actual invoice from the vendor is received. It acts as a placeholder to recognize costs in the accounting period they are incurred, ensuring accurate financial reporting and accrual accounting.
How It’s Used: In real SAP Business One projects, A/P reserve invoices are used when a company needs to account for expenses that are known but not yet invoiced by the supplier. For example, if services have been rendered or goods received near the end of a financial period but the vendor invoice is expected later, a reserve invoice is created to accrue the expense. This helps in matching expenses to the correct accounting period and improves financial accuracy.
Important Configuration:
Enable the use of A/P reserve invoices in SAP Business One under Financials settings if applicable
Create A/P reserve invoices via the Purchase A/P Reserve Invoice window (menu path: Purchasing – A/P Reserve Invoice)
Ensure proper linking of reserve invoices to actual vendor invoices when received to clear the reserve
Set up appropriate G/L accounts for accrual postings in the Chart of Accounts
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