SAP Vendor Payment Process- Configuration, Development

Author : MKS Consultancy

Vendor Payment Configuration, Development in SAP

SAP Payment Process – Configuration

• Steps in SAP Payment Process Configuration
• Define Bank Key – FI01
• Define the House Bank – FI12
• Set up All company code –FBZP
• Set Up Paying Company code –FBZP
• Set Up Payment Method per Country –FBZP
• Set up payment Method per company code –FBZP
• Set up Bank Determination –FBZP
• Define Value Date rules – FBZP
• Update new Payment Method in Vendor Master – XK02

SAP Payment Process Configuration – FI01

• Bank Country : US
• Bank Key : CITIUS33456
• Bank Name : Citibank
• Street : 111 Wall Street
• City : NEW YORK 10004

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Define House Bank– FI12

• House Bank : BANKE. These are banks through which payments are made in payment program. House Bank is associated with country US through Bank key CITIUS33456
• Bank Name: Citi Bank
• City : New York
• Company Number: Enter company code number in Company number field

Define House Bank– FI12..Cont

• Company Code : 3000
• House Bank : BANKE
• ACCOUNT ID : CHECK
• Description : Citibank Checking Account
• Bank Account number : 3580073 (Account number received from bank)
• Currency : USD
• Control Key : 01 ( Checking Account, 02 for Saving Account)
• GL Account : 113023 (Account to which bank transaction figures are updated)
• Bank country US
• Bank Name : Citibank

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SAP Payment Process Configuration – FBZP- All Company Codes

• Company code : 3000. Company code for which Payment program configuration settings are made
• Sending Company Code : 3000. Company code sending the payment to the vendor. Can be same or different from paying company code
• Paying Company Code : 3000. Company code which makes payment to vendor. This is generally same as sending company code. In case of centralized payments there can be one company code making payments for various other company codes.
• Outgoing pmnt with cash disc. from : .2%. 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, payment is made at the due date
• Vendors: Sp. G/L transactions to be paid : FA.

SAP Payment Process Configuration – FBZP- Paying Company Codes

• Paying Company Code : 3000. Can click on right to see the listing of all company codes for which it will act as paying company code
• Min amount incoming Payment : 1. If amount less than specified here, it is listed in the exception list.
• Minimum amount outgoing payment : 1.If payment amount less than one specified here, line items that make up this amount are listed in the exception list.
• No exchange rate differences : Select. If the indicator is not selected, the difference between the exchange rate at the time of posting and the exchange rate at the time of payment is determined for items which are posted in foreign currency. The exchange rate differences which have been determined are automatically posted for each payment.
• Form Payment Advice : F110_US_AVIS. Name of the SAP script used to create a payment advice note in this company code.

SAP Payment Process Configuration – FBZP Payment Method per Country

• A PM define how a payment will be made to the vendor. Standard payment methods are Check, ACH, Wire Transfer as discussed in slide…
• Pymt Method : E (Wire transfer)
• Payment method for : Outgoing Payments
• PM Classification : Bank transfer
• Required master data : Select Bank details as vendor Bank account number and routing number are required in the payment file online transfer of funds by Bank
• Payment Medium : Leave blank. Select Payment Medium workbench. Format of file (Z_IDES) will be created using DMEE tool later in the course.
• Document Type for Payment : ZP
• Clearing Document Type : ZV
• Currencies Allowed : If no currency is specified here all currencies are allowed for making payment. To restrict currencies used for payment, specify them in currencies allowed tab.

SAP Payment Process Configuration – FBZP Payment Method per Company Code

• Min. Amount : Minimum amount required to use the Payment method
• Maximum Amount : maxi amount that can be paid using the method
• Single payment for marked item: All line items for which the Payment method is entered explicitly during document entry get paid separately
• Foreign Business Partner allowed : When selected payment can be made to vendors outside company code home country. In this case vendors outside USA
• Foreign currency allowed: When selected payment program can make payments in currency other than company code local currency.
• Cust/ Vend Bank aboard: Used for international wire transfer payments. Select where the vendor bank to which payment has to be made is outside company code country ( USA).
• Use F1 for more details on any of the SAP fields

SAP Payment Process Configuration – FBZP Bank Determination

• Ranking Order: Here maintain the house bank from which payment will be made to vendor. You can specify many banks and give ranking order in which they have to be considered for payment by SAP payment program. Also where a payment method is not specified for a house bank, it is considered for payment by all the payment methods.
• Bank Accounts: specify the GL account number to which payments will be posted for combination of House bank, Payment method and Bank Account
• Available Amount: Maintain the maximum amount available for payment from a house bank
• Value Date : Enter days in the value date field. These are added to the payment run date / posting date to arrive at the date on which debit/ credit memo is expected in the Bank account. Useful in case of check payments, where checks are presented to bank after 3-4 days of issue to the vendor

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Update Vendor Master with Payment Method – XK02

• Add Payment Method E to Vendor master field Payment methods
• Add Vendor Bank Account Number, Routing number in the Vendor master

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Thank You

THANK YOU