How sap overcomes challenges in accounts payable in sap?

1. Making sure that vendor gets paid on time.
   Organization have huge list of vendors. Organizations keep receiving goods/ services from vendor and vendor sends bills accordingly. Out of thousands of bills, keeping track of which bill is paid and which bill is due for payment becomes difficult.
   
   
2. Different payment method involved.
   A vendor may need to be paid by ‘check’ but other vendor may need to be paid by online bank transfer. Hence different payment method for different vendors, hence bills need to be segregated depending upon payment method. This makes is difficult to track.
   
   
3. Sending payment information to banks.
   Employee needs to prepare payment information to bank so that bank can process the payment to vendors. Manual intervention invites scope for error and hence lot of rework.
   
   
4. Bank reconciliation
   When vendor payment is done, money is deducted from organization’s bank account and paid to vendor’s bank account. Hence employee working in accounts payable module needs to coordinate with bank to reconcile organization’s account books with balance in bank account. Employee also needs to communicate with vendor to keep the vendor informed that payment has been initiated for so and so bills.

With large number of vendors and huge list of bills, it becomes very difficult for employee working in account payable to keep track of all the things.