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What is A/R invoice and payment in SAP SBO - SAP Business One?


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SAP Term: A/R invoice and payment

  • Component: SBO

  • Component Name: SAP Business One

  • Description: A transaction used for cash sales to one-time customers. The customer has to pay the full invoice amount immediately.


Smart SAP Assistant

  • Term: A/R invoice and payment

    Component: SBO SAP Business One

    Definition: An A/R (Accounts Receivable) invoice in SAP Business One is a document that records a sale or service provided to a customer, creating a receivable amount owed by that customer. The payment is the process of receiving and recording the actual cash or payment method used by the customer to settle that invoice.

    How It’s Used: In SAP Business One projects, A/R invoices are created to bill customers for goods or services delivered. Once the invoice is posted, it increases the accounts receivable balance. Payments are then recorded against these invoices to reduce the outstanding receivable. This process is essential for managing customer credit, cash flow, and financial reporting. For example, a sales order is fulfilled, an A/R invoice is generated, and when the customer pays, the payment is applied to clear the invoice.

    Important Configuration:

    • Define payment terms and methods in the Business Partner Master Data
    • Set up numbering series for A/R invoices via Administration > Setup > Financials > Document Numbering
    • Configure posting accounts for A/R invoices and payments in Financials > Chart of Accounts
    • Use T-codes or menu paths: Sales - A/R Invoice (Marketing > A/R Invoices), Incoming Payments (Banking > Incoming Payments)
    • Ensure proper bank accounts and payment methods are configured for accurate payment processing

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Related SAP Glossary Terms

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