In SAP S/4HANA, supplier balance confirmation is a pre-closing activity used to verify the accuracy of open items or balances with suppliers. Different procedures are available depending on the type of response expected from the supplier. Let’s analyze each option to determine the correct answer.
Explanation of Each Option:
B. Balance notification
Correct : The balance notification procedure is used when a response is expected only in case of discrepancies. In this process, the system sends a notification to the supplier with their outstanding balance or open items. If the supplier agrees with the balance, no response is required. However, if there are discrepancies, the supplier is expected to respond and highlight the differences.
Reference : According to SAP documentation, balance notifications are designed for scenarios where responses are needed only for disputed amounts, making it an efficient method for confirming balances.
A. Account statement
Incorrect : An account statement provides a detailed overview of all transactions and open items for a supplier account over a specific period. While it can be used for reconciliation purposes, it does not specifically cater to scenarios where a response is expected only in case of discrepancies. Account statements are typically sent for informational purposes rather than confirmation.
Reference : Account statements are more comprehensive and do not focus on selective responses for discrepancies.
C. Balance request
Incorrect : A balance request is a formal request sent to the supplier asking them to confirm their balance. This procedure expects a response from the supplier regardless of whether there are discrepancies or not. It does not align with the requirement of receiving a response only in case of discrepancies.
Reference : Balance requests require explicit confirmation from the supplier, even if there are no issues with the balance.
D. Balance confirmation
Incorrect : Balance confirmation is a general term that refers to the process of verifying supplier balances. However, it does not specify the procedure where a response is expected only in case of discrepancies. This option is too broad and does not directly address the requirement.
Reference : Balance confirmation encompasses various methods, but it does not inherently imply selective responses for discrepancies.
Key References to SAP S/4HANA Documentation:
SAP S/4HANA Finance for Accounts Payable : Explains the different procedures for supplier balance confirmation, including balance notifications and balance requests.
SAP Help Portal - Supplier Balance Confirmation : Provides detailed guidance on configuring and executing balance notifications, emphasizing their use for selective responses.
Pre-Closing Activities in Financial Accounting : Highlights the importance of supplier balance confirmation as part of the financial closing process.
Reconciliation and Confirmation Procedures : Describes the differences between account statements, balance notifications, and balance requests.
