[APP] CONFIGURATION.pdf

8/17/2019 [APP] CONFIGURATION.pdf

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AUTOMATIC PAYMENT PROGRAM [APP] CONFIGURATION

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Automatic Payment Program (APP) Configuration

BY:

S.SATYANARAYANAN

ASSOCIATE COSULTANT- SAP FI

DEXLER INFORMATION SOLUTIONS


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INDEX

Introduction:.............................................................................................................................................. 4 Setting up the Payment Program ............................................................................................................. 5

FIGURE 1: TCode: FBZP - Payment Program Configuration Screen................ ............ ............. ... 5

I. Configuration: “All Company Codes” ............................................................................................... 6 FIGURE 2: Payment Program – “All Company Codes” configuration screen ........... .............. ........ 6 Paying company code........................................................................................................... 6 Sending company code......................................................................................................... 6 Separate Payments for each Business Area... ............. ............ .............. ............ ............... .... 6 Payment Method Supplements ............................................................................................. 6 Tolerance days for payables ................................................................................................. 7 Cash Discounts..................................................................................................................... 7 Special G/L transaction ......................................................................................................... 7

II. Configuration: “Paying Company Codes” ....................................................................................... 8 FIGURE 3: Payment Program – “Paying Company Codes” configuration screen. ............. ............ 8 Minimum Amounts................................................................................................................. 8 No Exchange rate differences ............................................................................................... 8 No Exch Rate Diffs (Part Payments) ..................................................................................... 8 Separate payment for each ref.. ............ .............. ............. .............. ............ .............. ............. 8 Bill\Exch pymts...................................................................................................................... 8

Bill of exchange data............................................................................................................. 9 Forms for Payment advice and EDI:......... .............. ............. ............ ............ ............... ........... 9

III. Configuration: “Payment Method/Country” ................................................................................... 10 FIGURE 4:Payment Program–“Payment Method/Country” Overview screen 10 Incoming/Outgoing Indicator ............................................................................................... 10 Payment method classification............................................................................................ 10 FIGURE 5: Payment Program – “Payment Method/Country” configuration screen. ............ ......... 11 Required master record specifications ................................................................................ 11 Posting details ..................................................................................................................... 11 Payment Medium ................................................................................................................ 11

IV. Configuration: “Payment Method in Company Code”.............. ............. ............ ............... ............ . 12 Minimum amount limit for payment.............. ............. ............ .............. ............ ............... ...... 12 Maximum amount limit for payment.............. .............. ............. ............ .............. ............. ..... 12 Distribution amount ............................................................................................................. 12 FIGURE 6: Payment method in company code screen................. ............ .............. ............. ......... 12

Single payment for marked item....... ............. ............. ............. ............ ............... ............ ..... 12 Payment per due date......................................................................................................... 12 Foreign Payments/Foreign Currency Payments........... .............. ............ ............ ............... .. 13 Bank Selection Control........................................................................................................ 13

V. Configuration: “Bank Determination: Bank Selection and House Banks”.............. ............. ........... 13 Ranking Order..................................................................................................................... 13 FIGURE 7: Payment program configuration; Ranking Order Screen... ............ ............. .............. .. 14 Bank Accounts .................................................................................................................... 14 Available amounts............................................................................................................... 14 FIGURE 9: Payment Program Configuration; Available Amounts screen............. ............. ........... 15 Value Date .......................................................................................................................... 15 FIGURE 10: Payment Program Configuration; Value Date screen.............. ............. ............. ....... 16 Expenses and charges........................................................................................................ 16

Conclusion................................................................................................. Error! Bookmark not defined.


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ABSTRACT

This paper is aimed at providing an understanding of the configuration settings that are maintained on

the IMG screen to facilitate a payment run to be carried out. There are sett ings that need to be

maintained regarding different parameters such as permitted payment method for country and company

codes, maximum and minimum amount for which the payment program would be run, bank

determination and so on. This paper would provide a detailed explanation of every sett ing that is to be

maintained for a successful payment run.


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Automatic Payment Program Configuration

Introduction:

Every company is involved in purchasing goods or services from different vendors for which it needs to

pay (at a later date) depending on the payment terms set. For example, the vendor expects the

company to pay within 45 days of the sale. The company uses several methods to pay its dues to its

vendors. Some examples of payment methods include Bank transfers, Check payment etc. Now, these

payments to the vendors can be carried out manually or automatically using the automatic payment

program in SAP.

The Payment Process includes the following activities:

• Entering the invoices (vendor invoices for the business purchase)

• Analyzing the open invoices for due dates, that is, checking whether the payment is due. This

is determined by the payment terms set.

• Reviewing the invoices that are due for payment in the payment proposal.

• Approving the payment proposal for payment or modifying it.

• Making the payment to settle the invoices.

The SAP Automatic Payment Program helps to:

• Select the invoices to be paid

• Post the payment documents (updating the vendor books and settling the vendor open items)

• Print Payment media (for example: Printing the checks to be given to the vendors)

This paper would discuss in detail, the structure of the payment program configuration for customizing

and scheduling the payment run.


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I. Configuration: “All Company Codes”

FIGURE 2: Payment Program – “All Company Codes” configuration screen

In this activity, you would make configuration for all the company codes involved in the payment

transactions. For each company code, you would make the following specifications:

• Paying company code: You can assign a paying company code to each company code. This

means that you can have one company code process payment transactions centrally for

several company codes. Posting to bank accounts or sub-accounts are made in the company

code specified in this field during the automatic payment transactions.

• Sending company code: This is used in case of cross company code payments wherein one

company code (say company code “A”) makes payment for another company code (say

company code “B”). In this case, company code “B” would become the sending company code

and company code “A” would be the paying company code. If the sending company code is not

specified, the system automatically regards the paying company code as the sending company

code. In case, the sending company code is different from the paying company code, the

system notes the sending company code in the payment advice. This note is information for the

business partner.

• Separate Payments for each Business Area indicator, if set, enables the line items from

different business areas to be paid separately.

• Payment Method Supplements indicator, if set, a payment method supplement can be

predefined in the customers and vendors of the company code. This supplement is used for


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group payments. Payments are separated according to payment method supplements and can

be printed separately. The payment method supplement is defaulted during the document entry

and can be overwritten.

• Tolerance days for payables: This specifies the number of days by which the cash discount

period and the period for the due date for net payment can be exceeded without any charge or

loss of discount.

• Cash Discounts: It specifies the minimum percentage rate for payment with cash discount.

Only items that have a cash discount percentage rate greater than or equal to the one specified

here are paid with the cash discount deducted. If the percentage rate is less than the one

specified here, the payment is made at the due date for net payment (without any cash

discount deduction).

• Special G/L transaction to be paid for exception list for vendors and customers: These

fields indicate whether all the open vendor/customer items that have been created with one of

the specified special G/L indicator are included in the payment or are displayed in the

exception list.


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II. Configuration: “Paying Company Codes”

Paying Company Code is a company code which processes the payment transactions possibly for other

company codes too. Posting to bank accounts or sub-accounts are made in the company code specified

in “paying company code” field in the screen during the automatic payment transactions.

FIGURE 3: Payment Program – “Paying Company Codes” configuration screen.

The following activities can be configured here:

• Minimum Amounts for the incoming payments and outgoing payments. If the amount in

question does NOT equal or exceed the amount specified in this field, the line items that make

up this amount are printed in an exception list.

• No Exchange rate differences check box, if set, ensures that no exchange rate differences

are posted by the payment program, that is, no exchange rate difference posting is generated.

• No Exch Rate Diffs (Part Payments) indicator, if set, ensures that the payment program for

partial payments does not post exchange rate differences.

• Separate payment for each ref. checkbox indicates that only invoices and credit memos that

have the same payment reference, can be settled with one payment. This indicator is set if the

payment methods used in the country uses a payment reference for each payment.

• Bill\Exch pymts indicator causes the payment transactions with bills of exchange fields to be

displayed.


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• Bill of exchange data:

One bill of exchange per invoice indicates that a separate bill of exchange is to be

created per invoice

One bill of exchange per due date indicates that items which are due on the same

date can be paid together.

One bill of exchange per due date interval indicates that items which are due in a

specified period can be paid together with a bill of exchange. The periods are

individually specified with each payment run.

Bill of exchange due date for incoming payment specifies the maximum life which is

allowed for a bill of exchange that is issued for an incoming payment. The days

specified here is added to the posting date of the payment run. Only those invoices

which are due on the date resulting from it are ignored in the payment run.

The minimum and maximum due dates for outgoing payments specifies the minimum

or maximum life which is allowed for a bill of exchange with which an outgoing

payment is made. The days specified here is added to the posting date of the

payment run. Invoices which are only due within the dates resulting from the minimum

or maximum life are included in the payment run.

• Forms for Payment advice and EDI: You can specify the form name if you want to print

payment advice notes or an EDI accompanying sheet. You can also specify the SAP script text

modules that contain the details about the sender that are to be printed on the payment advice

note. The standard system contains forms for payment advice notes and EDI which can be

copied and adjusted to meet the requirements.


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III. Configuration: “Payment Method/Country”

FIGURE 4: Payment Program – “Payment Method/Country” Overview screen.

In this activity, you would first specify which payment methods are to be used in each country and then

make the following configurations:

• Incoming/Outgoing Indicator determines whether this payment method is for outgoing

payments or incoming payments.

• Payment method classification can be carried out specifying the type of payment method in

question such as check or bank transfer. You can also make other settings related to the

features of the payment method. It includes:

Indicator for the payment method that follows the post office current account method.

If this indicator is set, only those post office bank branches that are selected to

process the payment can run the current accounts.

Indicator to check whether the payment method is allowed for Personnel payments.


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FIGURE 5: Payment Program – “Payment Method/Country” configuration screen.

• Required master record specifications:

Here, you determine the specifications in the master record that control the payment

method used. If the indicator “Street, P.O. Box or P.O. Box postal code” is set, it

means that the payment method can only be used for a payment for which a Street,

P.O. Box or P.O. Box postal code is specified in the Customer/Vendor master record

in addition to the location.

Similarly, if the “Bank Details” indicator is set, the payment method can only be used if

these bank details have been maintained in the Customer/Vendor master record.

• Posting details or specifications specifies how the payment is posted, that is, which document

type is to be used for posting payment document, and which document type is to be used for

posting clearing documents during cross-company code payments etc.

• Payment Medium: You can specify the details of classic payment program or details for

payment medium workbench.


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IV. Configuration: “Payment Method in Company Code”

In this activity, you would specify which payment method can be used per company code and determine

the conditions under which the payment method is used. You can maintain the following configurations

in this activity:

• Minimum amount limit for payment: The payment method specified is only selected by the

payment program if the payment amount is not lower than the limit specified here.

• Maximum amount limit for payment: The payment method specified is only selected by the

payment program if the payment amount exceeds the limit specified here. You always have to

specify the maximum amount; otherwise the payment method cannot be used. If you specify

the payment method in the open item, the payment program ignores the amount entered here.

• Distribution amount Payments exceeding this distribution amount are analyzed to see if it is

possible to split them into several payments so that the total should not exceed the distribution

amount.

FIGURE 6: Payment method in company code screen.

• Single payment for marked item indicator causes open items, which contain this payment

method, to be paid individually. All items, for which payment method so indicated is entered

explicitly, are paid individually. If the payment method is not specified explicitly but is instead

selected by the payment program, several items can be paid together.

• Payment per due date indicator specifies that only items that are due on the same day will be

paid in a single payment.


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• Foreign Payments/Foreign Currency Payments:

Foreign business partner allowed indicator allows foreign customer and vendors to be

processed using this payment method.

Foreign currency allowed indicator allows use of foreign currency with this payment

method.

Customers/Vendor’s bank abroad indicator allows payments from customers and

vendors abroad.

• Bank Selection Control:

No Optimization indicates that the payment method does not perform bank

optimization during selection of own bank and bank of business partner.

Optimize by bank group indicator specifies that you want the system to optimize the

payment process by selecting the optimal pair of banks (your bank and the

Customer’s/Vendor’s bank)

Optimize by postal code indicator determines that the payment program should pay

the item from your house bank which is geographically nearest to the city or residence

of the customer/vendor.

V. Configuration: “Bank Determination: Bank Selection and House Banks”

In this activity, you make settings to select banks or bank accounts for which payments need to be made

in the payment program. On the bank selection screen, the file folders are located for each of these

sections: Ranking Order, Amounts, Accounts, Charges, and Value date. The user should work through

each of these folders to complete the payment program configuration.

• Ranking Order : The ranking order of banks specifies which house banks are permitted in the

payment run and ranks them in a list as shown in Figure 6


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FIGURE 7: Payment program configuration; Ranking Order Screen.

• Bank Accounts: For each house bank and payment method (currency if required) you specify

which bank account is to be used for payments.

FIGURE 8: Payment Program Configuration; Bank Accounts screen.

• Available amounts: For each account at a house bank, you enter the amounts that are available

for payment run. You enter separate amounts for incoming and outgoing payments. Specifying

available amounts enables you to control which bank account is to be used for payments. You can

specify the amounts depending on the value date at the bank.


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FIGURE 9: Payment Program Configuration; Available Amounts screen.

• Value Date: The number of days to value date is the probable number of days before a debit and/or

credit memo is carried out to the bank account. The number of days is added to the posting date

and results in the date relevant for cash management and forecast on which the debit and/or credit

memo is to be expected on the bank account.

Example: Payments which are made by transfer are deducted by your bank the next day. This

occurs regardless the amount. This means the money must be available the next day for payments

with this payment method. Hence, for this payment method, you would enter “1” in the “Days Until

Value Date” field.


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FIGURE 10: Payment Program Configuration; Value Date screen.

• Expenses and charges: This field is used to enter any bank charges that are part of the payments

made or received. For incoming payments, the system subtracts the bank charges from the clearing

amount. For outgoing payments, it adds the charges to the clearing amount.

FIGURE 11: Payment Program Configuration; Expenses/Charges screen.


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Summary

This paper highlighted the important payment program configurations required to run a payment

program. Running a payment program would involve several steps including setting parameters

regarding the payment method (used for the particular payment run), payee (the vendor accounts

involved); generating payment proposal indicating the vendor line items by selecting payment and line

items which cannot be paid for some reason; scheduling the print and updating the vendor books.

Successful payment program run would pay the vendor’s dues and clear the vendor open line items.

Documents

[APP] CONFIGURATION.pdf