Professional Documents
Culture Documents
1.
2.
3.
4.
o
o
o
Bank Accounts
The International Bank Account Number (IBAN) 34 alphanumeric characters are an internationally
recognized and unique number that identifies a specific bank account. It was designed by the
International Organization for Standardization (ISO) and the European Committee for Banking Standards
(ECBS) to facilitate the handling of international payment transactions. We can enter it as follows:
The IBAN can only be entered in a vendor or customer master record if the business partner provides
his or her IBAN and requests the entry.
When you enter an IBAN for new bank details, the system can generate the country-specific bank
details for certain countries.
Each bank that is used must have a bank master record in the bank directory in the system.
Bank master data can be copied into the bank directory manually or automatically. Each bank master
record in the bank directory is uniquely identified by the bank country and a bank key.
The house bank is the bank used for internal business. A bank becomes a house bank when you assign a
house bank ID to it. The payment program uses the house bank ID to determine the bank to be used.
There are four ways to create bank master data:
When entering bank information in the customer or vendor master record, or in the Customizing for
house banks:
Using the Create Bank transaction in the Accounts Receivable/Payable master data menu.
The bank directory can be imported from disk or tape which can be obtained from one of the country
banking organizations.
Customers that use the lockbox function can create a batch input session that automatically updates
customer banking information in the master record.
.
The house bank ID and the account ID together uniquely identify an account. An account ID can only be
used once for each house bank. You can create several accounts, each with a separate account ID, for
each house bank. This combination is entered in a G/L account that represents the bank account in the
general ledger.
A G/L account must be created for each bank account. This G/L account is assigned to the bank
account and vice versa. Both accounts must have the same account currency.
Payment Run
The SAP payment program lets you automatically
Select open invoices to be paid or collected
Post payment documents
Print payment media, use data medium exchange (DME), or generate electronic data interchange (EDI)
The settings for the payment program are defined in three places:
In the master record for the business partner, for example: bank details and payment methods
In the items, for example, payment methods in the document, terms of payment, and so on
In Customizing for the payment program
The payment process consists of four steps:
Setting parameters: In this step, the following questions are asked and answered:
What is to be paid?
Which payment method is to be used?
When is the payment to be made?
Generating a proposal: Once you have entered the parameters the system starts the proposal run. It
generates a list of business partners and open invoices that are due for payment. Invoices can be
blocked or unblocked for payment.
Scheduling the payment run: Once the payment list has been verified, the payment run is scheduled. A
payment document is created and the general ledger and sub ledger accounts are updated.
Printing the payment media: The accounting functions are completed and a separate print program is
scheduled to generate the payment media
Payment Program Configuration
There are six configuration areas for the payment program:
1. All company codes (open items are automatically counted or included)
2. Paying company codes
3. Payment method per country
4. Payment method per company code
5. Bank selection
6. House banks
o
o
The first three areas only require minimum changes. The standard system contains the common
payment methods and their corresponding forms, which have been defined separately for each country.
1. All company codes
A. Control Data
Payment relationships that apply across all company codes are defined here.
Sending Company Code -whose payment methods are accepted (sub ledger accounting) Company code
A pays for company code B. Company code B is the sending company code. If no sending company code
is defined, the paying company code is interpreted as the sending company code.
Paying Company Code: This is the company code that processes outgoing payments. This is the
company code that records the bank postings. The sub ledger postings are recorded in the sending
company code.
Payment Method Supplements: These are two-character alphanumeric codes that are taken from the
business partners master record that is transferred to the document when the payment is posted.
Advantage:
The payment media can be sorted and printed separately according to payment method supplement
(such as sent to a vendor in the same building by internal mail; functions as a mail box stop (internal
dispatch method)).
Vendor/Customer Sp. G/L Transactions to be paid specifies which special general ledger transactions can
be processed with the payment program.
B. Cash Discount and Tolerances
You can define a minimum discount limit for outgoing payments. If the discount is less than this limit,
it is ignored and the payment is not made until the due date for net payment.
The maximum discount setting causes the maximum discount to be used, even if the cash discount
period has been exceeded.
Tolerance days for payables specify the number of days by which the cash discount period and period
for net payment may be exceeded (delayed payment).
2. Paying company code
The minimum amount for incoming/outgoing payment specifies the minimum amount required to make
an incoming or outgoing payment.
The forms that will be used for each paying company code.
If you choose no exchange rate differences, the full exchange rate differences are not posted until the
bank posting has been received.
The Separate Payment for Each Reference setting specifies that a payment can only be used to pay
invoices and credit memos that have the same payment reference.
Define how many bills of exchange are created for each account during the payment run for the bill of
exchange payment method.
Control which open items for the bill of exchange payment method are to be considered during the
payment run using the due date specifications
3. Payment Method per country
Characteristics for classifying the payment method: What is the method of payment and what are its
characteristics?
Requirements in the master records, for example, address required for check Posting details:
Payment media info: Print programs; standard programs RFFOD* (such as RFFOD__S) or PAYMENT
MEDIUM WORKBENCH
Key in the code line: For the bank; for example, 51 on bank transfers
o The value date is usually calculated from the posting date of the payment run plus the number of days
up to the value date.
o The incoming and outgoing payment functions have a bank charges field for entering all types of bank
charges. For incoming payments, the system subtracts the bank charges from the clearing amount. For
outgoing payments, it adds the charges to the clearing amount. The system also posts the charges to an
expense account. To do this, it requires a posting key and an account assignment, both of which are
already defined in the standard system
Running Payment Program
Every payment program run is identified by two fields:
o Run Date it is recommended as the actual date when the program is executed. Its main purpose is to
identify the program run
o Identification -The identification field is used to differentiate between program runs that have the same
run date.
o
o
o
o
o
o
o
o
o
o
o
All documents that were entered up to the Docs entered up to date are included in the payment run.
The posting date is the date when the general ledger is updated with the postings. This date is
defaulted from the run date on the previous screen.
If multiple company codes are listed, they have to be separated by commas.
The company codes in a payment run must be in the same country.
For each country, we defined payment methods that can be used within that particular country. From
these payment methods, choose the ones to be used in the current payment run.
If you use more than one payment method in the payment run, remember that the order in which you
enter them is important. The method entered first has first priority; the next has second priority, and
so on. The system makes the payment using the highest priority possible after the check.
What happens in the proposal run?
The items to be paid are selected (based on the search criteria entered with the parameters).
The items for the payments are collected and payment methods and bank details assigned.
If the system cannot find a payment method or bank details, the items are added to the exception list.
The proposal and exception list are generated after the proposal run.
How is the due date determined for payables?
A vendor item is paid if the following applies at the next payment run (taking the tolerance days into
account):
The discount has expired.
A lower discount should be received.
The net due date would have been exceeded.
Once the proposal run is completed, the system generates two reports: the payment proposal list and
the exception list. You can edit these reports online or print them.
The proposal list shows the business partners and the amounts to be paid or received.
Any exceptions are also listed here. Users can drill down several times to view and change the details
of the individual payment items
There are several ways to configure a payment block:
If a problem arises during the invoice verification process, the invoice is usually blocked for payment.
If there is a reason why a vendor should not be paid, you can create a payment block in the master
record.
When an AP invoice is entered, an invoice may be blocked for payment.
You can define additional payment blocks in the system. Users can also specify whether the payment
block can be removed when payments are processed.
After you have edited the payment proposal, the system uses it as a basis for the actual payments.
What happens during the payment run?
1. Payment documents are created or posted.
2.
3.
o
o
o
o
o
o
1.
2.
3.
4.
5.
6.
1.
2.
3.
The program RFF110S, in turn, can automatically run four additional programs consecutively.
To prevent outgoing payments despite a due debit balance, the program RFF110S should first be
scheduled as a proposal run. Following this, the program RFF110SSP should be called automatically to
perform the debit balance check.
After the debit balance check, the program RFF110S is called again automatically. This time, however,
as an update run with possible generation of the payment media
The programs can be scheduled to run periodically using job management or the Schedule Manager.