4/10/2019

FI Accounts Receivable and Accounts

Payable
Generated on: 2019-04-10

SAP ERP | 6.00.31

PUBLIC

Warning

This document has been generated from the SAP Help Portal and is an incomplete version of the official SAP product
documentation. The information included in custom documentation may not re ect the arrangement of topics in the SAP Help
Portal, and may be missing important aspects and/or correlations to other topics. For this reason, it is not for productive use.

For more information, please visit the SAP Help Portal.

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Customizing the Payment Program

This section describes how to make the necessary speci cations for the payment program.

Before you can use the payment program, you need to de ne:

Your house banks and the accounts at your banks

The required payment methods

The necessary payment forms

The standard system has prede ned payment methods and payment forms. You can copy them and adapt them to meet
your own requirements.

Payment program con guration involves determining:

What is to be paid. To do this, you specify rules according to which the open items to be paid are selected and grouped for
payment.

When payment is carried out. The due date of the open items determines when payment is carried out. However, you can
specify the payment deadline in more detail via con guration.

To whom the payment is made You specify the payee.

How the payment is made. You determine rules that are used to select a payment method.

From where the payment is made . You determine rules that are used to select a bank and a bank account for the
payment.

The above rules and conditions must be de ned if the payment program is to determine the above-mentioned information
automatically. However, you can also specify this information manually.

Most of the aforementioned speci cations are company code-speci c, enabling you to con gure the payment program to suit
the differing requirements of each company code.

The settings for the payment program are made under Payment Program in the Accounts Receivable and Accounts
Payable section of the Implementation Guide.

You de ne payment forms from the access menu by choosing Tools Word P rocessing Form .

You de ne printers and fonts by choosing Tools Administration Spool Spool ManagementorSpool Font Maintenance.

How the Payment Program Works

Purpose
With the payment program you can process international payment transactions involving your customers and vendors.

Prerequisites
The Payment Methods , House Banks , and Forms you use must be de ned or adapted before the payment run is executed.

If the above-mentioned steps are to be carried out automatically, the payment program requires the following information:

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Rules according to which it can determine the open items to be paid and, if expedient, group them together for payment.
For example, you can specify grace periods for incoming items, which are taken into consideration when calculating the
due date.

Speci cations for selecting the payee. You can enter an alternative payee in your customer/vendor's master record or in
the document itself.

Rules used by the payment program to select the payment methods. You can specify payment methods via your
customer or vendor's master record or via the open items, or you can have the payment program select them using
speci ed rules.

Rules used by the payment program to select the house bank from which the payment is made. House banks are banks
where your company (company code) maintains accounts. You can specify a house bank in your customer/vendor's
master record or in the line item, or you can have the payment program select it using speci ed rules.

Speci cations for automatic postings. The payment program requires information such as document types, posting keys
and accounts, in order to carry out the automatic postings.

You set the rules for controlling the payment program

In the customer/vendor master record

In the line items

via con guration of the payment program

With individual speci cations for each payment run

You can nd further information in Payment Program Settings

Process Flow
The program processes open items in three steps (see the gure Processing Open Items ):

1. It determines the open items to be paid and creates a proposal list. You can process the proposal list on-line. Among
other things, you can change payment methods or banks, block items, or cancel payment blocks.

2. The payment program carries out payment using the proposal list. The payment run includes only the open items
contained in the proposal list. The payment program posts documents and provides the data for the form printout and
for creating the data carriers, the payment advice notes and the payment summaries.

3. It uses the print program to print the forms and create the data carriers.

House Banks
The banks with which your company (company code) maintains a bank account are referred to as house banks.

You de ne these banks in the system under a house bank key (bank ID). You store the accounts that you maintain at these
banks under an account ID. For each bank account, you create a G/L account in the SAP system.

Bank master data is stored centrally in the SAP system. This includes address data and other control data, such as the SWIFT
code. You require bank master data for your house banks and for your customer or vendor's banks. By specifying the country
and a country-speci c key, such as the bank number or the SWIFT code, you establish the connection between your house banks
and the bank master data (see the gure below). The bank details are required for printing the payment forms.

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You can nd out how to create bank master data in Bank Master Data and Con guring the System Using the Implementation
Guide under "Bank-Related Accounting"

Payment methods
The payment method speci es the procedure, such as check, transfer or bill of exchange, by which payments are made.

The following payment methods are usual in Accounts Payable and Accounts Receivable:

Accounts payable Accounts receivable

Check Bank collection

Transfer Bank Direct Debit

Postal giro transfer Refund by check

Bills of Exchange Refund by bank transfer

Check/bill of exchange Bank bills

Bill of exchange payment request

You de ne the payment methods in two steps:

1. You rst make all the speci cations that are required for each payment method in each country. This is necessary for all
the payment methods used by your organization in each country. If you have companies (company codes) in Germany,
France and the USA for example, you de ne the payment method "check" for each country.

2. You then de ne the payment methods you use for each company code. When in this con guration function, you also
specify the conditions of their use.

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For more information, see Notes for the Payment Method

Country-Speci c De nitions for the

Payment Method
The payment methods that are used in at least one of your organization's company codes are de ned as follows. Country-
Speci c De nitions for the Payment Method: Diagram shows those speci cations that are used for the payment method
“Check” in Germany.

You classify a payment method by selecting the characteristics that are to apply to it (see (1) of the diagram). The program
uses this information to determine the data required for the payment forms and data carriers.

You must also de ne which information from the customer/vendor master record is to be used to determine the payment
method (see (2) of the diagram). If this information is missing from the customer/vendor master record, the payment method
cannot be used.

 Example
In the standard system, the payment method "check"(for Germany) is con gured such that a check is created
(classi cation). The street or P.O. Box must be contained in the customer or vendor master record.

These speci cations are supplemented with other speci cations for posting the payment documents and printing the forms (3)
and (4 ) .

 Example
For the payment method "check", you specify for example that document type KA is used and the print program RFFOD_S.

All the payment medium programs are documented in detail in the language of the country of use. If you want to have the
system list all the standard payment medium programs available, proceed as follows:

1. Choose System Services Reporting. Enter RFFO*and select the function Utilities Find.

2. Enter FORD in the Program category eld and execute the search. The system will generate a list of all payment
medium programs in the system. The name of each program gives you an indication of its purpose.

Country-Speci c De nitions for the

Payment Method: Graphic

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Company Code Speci cations for the

Payment Method
The conditions under which each payment method is used must be de ned for each company code that makes payments. (
Company Code-Speci c De nitions for the Payment Method: Graphic shows those speci cations that are used for the payment
method "check" in Germany).

To do this, enter a minimum and a maximum amount for a payment ( 1 ). This tells the program the value range within
which the payment method can be selected by the payment program. Note that unless you specify a maximum amount,

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the payment method cannot be used at all. This value range does not apply if the payment method is speci ed in the
open item.

You also specify whether the payment method can be used for foreign payment transactions . You specify whether
payment is made if

The customer or vendor is based abroad (2)

The bank to which the payment is made is based abroad (3)

You specify whether it is possible to use the payment method in question to pay in foreign currency (4) in which case any
currency can be used.

You can also specify particular currencies per payment method and country. If this payment method is selected, payments are
only processed in one of the currencies speci ed.

If you wish to de ne particular currencies, choose the function Currencies in the country-speci c details for each payment
method.

Note

If the payment method allows only payments in local currency, then any foreign currencies you may have de ned are ignored.

During a transition phase, both the existing local currency and the EURO can be used for domestic bank transfers. To
enable this, de ne payments in foreign currency as permitted for the payment method Bank transfer and the EURO and
the existing local currency are possible currencies.

You can use a payment method such as EURO bank transfer for certain currencies only.

You use foreign currency checks with pre-printed currency key (for example USD checks) and you wish to set up a
payment method with which you make payments in USD only, whereby USD is not your local currency.

You specify if the payment method should include the attribute Payment per Due Date . This indicator ensures that a
payment will be created for each due date. Items to be paid are then grouped according to due date, and instead of one
payment being generated, as many payments are generated as there are different due dates.

 Example

For the payment method "check", you do not specify any minimum amount limits since this payment method is used if other
payment methods cannot be used. You must specify a maximum amount because otherwise the payment method cannot be
used. The customer or vendor can be located abroad. The customer/vendor’s bank is irrelevant for check payments. Foreign
payment transactions are therefore possible. Payments in foreign currencies are permitted.

Company Code-Speci c De nitions for the

Payment Method: Graphic

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Payment Method: Additional Speci cations

You can de ne additional speci cations (Mailstop codes) for each company code. The payment program groups payments
according to these speci cations. A separate payment will be carried out for each additional speci cation made. In the payment
medium programs, you can select and sort where needed according to an additional speci cation. Correspondence can also be
sorted using this criterion.

You can de ne proposed values for the additional payment method speci cations in the customer and vendor master records.
During data entry, these values will be displayed as defaults that can be selected or overwritten.

As an example, you can use additional speci cations for controlling the issuing of checks. The speci cation could divert checks to
be sent to partner rms by interoffice mail, instead of through the postal system. There are various possible internal
distribution channels here too. Each internal distribution channel can be represented by a payment method supplement. This
will greatly simplify operations with multiple mail systems, since checks can be separated by additional payment method
speci cation at the time of printing.

Bank Chains (Multi-Stage Payment

Methods)
Use
Bank chainsare used to make payment via more than one bank, for example via the correspondence banks of the house bank,
the recipient bank, or the intermediary banks. You can de ne up to three banks.

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Note
Before the advent of this function, when making a payment to a business partner abroad, you had to specify your house bank
and the business partner’s bank when processing payments. These two banks represented the start and end of the payment
cycle and it was down to the house bank to determine via which banks the payment should be made. Using the bank chain
function, you can now specify this bank chain yourself, leading to faster payment transaction processing and considerable
cost savings through reduced bank charges.

Integration
To use the bank chain function, you must also implement the function Automatic Payments in either the Financial Accounting
(FI) or the Treasury (TR) application component.

For more information on automatic payments in Financial Accounting, see Payments . For more information on automatic
payments in Treasury, see Payment Program for Payment Requests

Features
For each payment, the payment program can determine a combination of intermediary banks that you previously de ned. The
order of the banks in the bank chain can depend on the following factors:

House bank

Vendor’s bank details

Customer’s bank details

Treasury business partner’s bank details

Currency

Payment method supplement

These factors are represented in the SAP system by means of scenarios for bank chain determination that you de ne in
Customizing for Bank Accounting, as described under Activities below.

If you carry out a payment run (whether for open items or for payment requests from Treasury or Cash Management) the
system determines the bank chain according to your Customizing settings and those you made in the master data. If, during
payment proposal editing, you have changed an entry (house bank or partner bank for example) that is relevant to bank chain
determination, the system re-determines the bank chain, which is then displayed on screen.

The system is only able to determine the bank chain if a payment method is used for which a bank chain is needed (no bank
chain is determined for payments by check for example.)

When processing payments, you can use program RFZALI20 to create a payment list and an exception list. The payment list
contains a summary of all payments and line items. The exceptions list contains blocked line items and open items that the
payment program did not propose for payment. In the standard system, the bank chain in not included on either list. If you want
to have the bank chain output on the payment or exception list, see Including Bank Chains on Payment Lists

Bank chains are transferred each time a payment medium is created. The following formats are supported in this process:

S.W.I.F.T MT100

S.W.I.F.T MT200

S.W.I.F.T MT202

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EDI (Basis-IDOC: PEXR2002)

Sending of payment data by ALE (Basis-IDOC:FIPARQ01)

Activities
1. Copy one of the scenarios that are delivered in the standard system or de ne a new scenario.

To do so, in Customizing for Bank Accounting choose Bank Chains De ne Scenario

2. Activate the scenario.

To do so, in Customizing for Bank Accounting choose Bank Chains Activate Bank Chain

3. If you want payments to be made via a bank chain and independently of a business partner’s bank details, de ne a
general bank chain.

To do so, in Customizing for Bank Accounting choose Bank Chains Create General Bank Chain

If you want payments to be made via a bank chain and dependent on a business partner’s bank details, de ne a partner-
speci c bank chain.

To do so, on the initial screen, choose Accounting Financial accounting Banking

Master data Bank chain House banks Edit. De ning Bank Chains for House Banks .

Master data Bank chain Bank account carryforward De ning Bank Chains for Cash Management .

Master data Bank chain Business partners Edit. De ning Bank Chains for Customers and Vendors .

De ning Bank Chains for Customers and

Vendors
Use
The purpose of this activity is to specify which bank chain is to apply for a given customer or vendor.

Prerequisites
You have already de ned the master data for the customer or vendor.

Procedure
1. On the SAP R/3 screen, choose Accounting Financial accounting Banking .

The system now displays the Banking screen.

2. Choose Master data Bank chain Business partners Edit .

3. Enter the customer or vendor account number and select the indicator for the payment direction (incoming or outgoing
payment). If necessary, enter the appropriate data in the parameters Company code, House bank, Account, Currency,
and Payment method supplement. Choose Execute.

The system displays a list of partner banks.

 Example
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In the Vendor eld, enter KRED1 and select Outgoing payment.

4. Choose the required bank. If a bank chain did not already exist, the system displays a message alerting you to this fact.

The system displays the Bank Chain per Business Partner Account screen.

5. Choose Edit New entries and enter the desired speci cation for the bank chain. Bank chains are speci ed per Currency
and (if necessary) also per Sender bank country, Sender bank key and Payment method supplement.

 Example
Enter EUR in the Currency eld.

6. Choose Bank chain per business partner account, followed by Edit New entries and enter the required bank chain by
specifying the:

Bank number

Bank category (correspondence bank of the sender, intermediary bank, sender’s correspondence bank)

Country

Bank key

Bank account of the correspondence or intermediary bank

 Example
No. 1 Cat 2 (intermediary bank)

Corr.Ctry

(Country of correspondence bank) DE Corr.Bank key .

(Bank key of correspondence bank) 111222

Bank account GIRO

7. Save your entries.

Result
You have now created a bank chain for a customer or vendor partner bank for outgoing or incoming payments.

De ning Bank Chains for House Banks

Use
Here you de ne which bank chain applies for incoming or outgoing payments for a given house bank.

Prerequisites
You have created the master data for the house banks.

Procedure

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1. Choose Accounting Financial accounting Banking .

The system displays the Banking initial screen.

2. Choose Master data Bank chain House banks Edit .

3. Enter a Company code , together with a Payment currency and/or a Payment method supplement . Choose Execute.

The system displays a list of house bank accounts in the company code.

4. Choose the required bank.

The system displays the Bank Chain per Business Partner Account screen.

5. Specify the required bank chain. Choose Edit New entries . Enter the Currency, and if necessary the Sending bank country ,
the Sending bank key , and the Payment method supplement.

6. Choose Payment methods per business partner account followed by Edit New entries . Enter the bank number , bank
category , bank country , bank key, and the Bank account of the correspondence bank.

7. Save your entries.

Result
You have now de ned a bank chain for incoming payments to a house bank account.

Creating Bank Chains for Cash Management

Use
To de ne bank chains for Cash Management.

Procedure
On the initial screen, choose Accounting Financial accounting Banking .

The system displays the Banking screen.

Choose Master data Bank chain Bank account carry over Edit. .Enter a company code, the house bank and the bank account
of the sending and receiving bank. Select the appropriate payment direction indicator (incoming or outgoing payment). You may
also wish to enter a Payment currency and Payment method supplement. Choose Execute.

If no bank chain exists, the system outputs a message informing you that a new entry will be created.

Choose Edit New entries and specify the bank chain for the appropriate bank. To do this, enter the Currency and (if necessary)
a Payment method supplement.

Choose Payment methods per business partner account and Edit New entries and enter the bank chain by entering the bank
number , the bank category (correspondence bank of the sender, intermediary bank, recipient's correspondence bank), the
Bank country, the Bank key and the Bank account of the correspondence or intermediary bank.

Save your entries.

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Result
You have now de ned a bank chain for Cash Management.

Including Bank Chains on Payment Lists

Use
In the standard system, the bank chain is not printed on the payment list or the exception list. If you want the system to include
the bank chain on the printout, carry out the technical modi cations detailed below.

Procedure
1. Create CUSTOMER INCLUDE

The ABAP dictionary structures REGUH_LST (header information) and REGUP_LST (line item information) contain the output
elds provided by program RFZALI20. Add the elds you require (the eld CHAINTEXT for example) to the CI_INCLUDE
CI_REGUH_LST with the following attributes:

 Example

Field name Data element Type Length Short description

CHAINTEXT CHAINTEXT CHAR 92 Bank chain as text

Proceed as follows:

a. Choose Tools ABAP Workbench Development Dictionary .

b. Select Structures, enter CI_REGUH_LST and choose Create .

The system displays a dialog box. Choose Enter.

c. Enter the required eld name (CHAINTEXT for example).

You can search for the corresponding data element (CHAINTEXT for example) by choosing the possible entries key in the Type
name eld. Choose Execute.

d. Save the INCLUDE structure.

1. De ne Business Transaction Event "00002110"

You can use the Business Transaction Event "00002110" to enter data in the elds (CHAINTXT for example) added using
CI_INCLUDE.

Proceed as follows:

1. Copy the sample function module SAMPLE_INTERFACE_00002110 and enter the required source text (from function
module FI_BL_BANKCHAIN_RFZALI20 for example) in your function module. To do so, choose
Tools ABAP Workbench Development Function Builder . Field CHAINTEXT is lled in this function module and then
made ready for output. Note that all the command lines are deactivated in this module.

2. You now need to create a product for the Publish & Subscribe interface.

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i. To do so, in Customizing for Financial Accounting choose Financial Accounting Global Settings Use business transaction
events Settings Products … of a customer .

ii. Create a new product by choosing Edit New entries.

iii. Enter the necessary data and save your entries.

iv. Choose Settings P/S function modules … of a customer.

v. To create a new function module for the Publish & Subscribe interface, choose Edit New entries.

vi. Enter Event 00002110, the product, and the function module SAMPLE_INTERFACE_00002120 . Save your entries.

For information on the use of business transaction events, see the Financial Accounting Global Settings section of the
Implementation Guide.

Result
The bank chain is now ready for output in the payment list.

Forms
Various programs are available for printing payment forms. In some cases, the print programs are country-speci c. You specify
the program to used for a payment method when you make the country speci cations for the payment method. See Country-
Speci c De nitions for the Payment Method: Graphic (4) This prevents the payment program from selecting the wrong print
program when printing is carried out.

You also specify a name for the print job in print administration, under which the data for the payment transfer is stored
temporarily. See Country-Speci c De nitions for the Payment Method: Graphic (4)

To ensure that the programs print the forms correctly, the system speci es which data is printed in which position. The form
layout is de ned with SAPScript. You specify the name of the de ned payment form when you make the company code
speci cations for the payment method. See the gure below, (1) . You also determine how many invoice items can be printed out
in the part of the form which serves as the note to the payee. See the gure below, (2) . If more items are to be paid than can be
listed on a form, you specify whether

A payment advice should be printed. See the gure below, (3)

Several forms should be created. See the gure below, (4)

You also store the address data of the issuer of the form. See the gure below, (5) . This data is used by the print program.

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You de ne the form that is used for printing a payment advice separately. You then specify this form when making the
speci cations for the paying company code. See Speci cations for the Paying Company Code in the topic "De nition of the
Paying Company Code" in Payment Program Settings .

The standard system contains pre-de ned forms for the standard payment methods. You can copy them and adapt them to
your requirements.

Speci cations for the Paying Company Code

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Parts of the Form

A payment form is not usually longer than one page. In the SAP System, the form page is divided into different windows.

The gure Payment Form Components: Graphic shows some of the text windows de ned for checks in Germany. These are:

Window Contents

HEADER Company speci cations, such as the company name or the

company logo

PAGE Page number

INFO, INFO 2 Date, document number, your account with the vendor, clerk etc.

ADDRESS Sender speci cations for window envelopes and receiver address

MAIN Text, line item information from the payment run and total amount

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Window Contents

CARRYFWD Carry forward, starting from the second page (where form is longer
than one page) form over ow

CHECK Check

CHECKADD Check address

CHECKSPL Amount in words

SUMMARY Check form summary

You determine the windows and their position on the page when de ning a form. You enter a speci c text for each window. This
text is referred to as a text element.

You can enter various different texts for the HEADER, ADDRESS, and FOOTER windows, and the opening/closing form in the
MAIN window for each company code. See Header, Sender, and Footer Text

The MAIN window is processed in a special way. You can de ne several text elements for this window. The text elements allow
you to enter different texts for a window, which are then printed (depending on the print data set offered by the payment
program). Read Text Elements in the MAIN Window

For information that the system lls in automatically at the time of the payment run, you de ne symbols in the text element .
These are replaced by the appropriate data when the payment form is printed. In the MAIN window (see the gure Check
Forms: An Example ) you can see, for example, the document number of each open item or the cash discount amount calculated
for the invoice amount. In both cases, the information is not entered in the form until the payment run takes place. Symbols
were entered in the text element to represent this data.

See also:
Payment Run Data for the Form Printout

Payment Form Components: Graphic

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Letter Header, Sender and Footer

For each of the forms in the SAP system, windows have been de ned for the letter header, the sender speci cations in the
letter window (see the above gure) and the footer text. You can enter text in these windows in three ways. There is an example
in the gure Text Elements for Special Windows : Graphic .

Since the texts for the above-mentioned windows are company code-speci c, you must specify whether you are working with
one or several company codes:

You can enter a xed text in the form window text element.

You should only do this if you use the form for a single company code.

You can de ne a standard text for several forms.

Enter the name of the standard text in the text elements of your choice in several forms.

However, this is only makes sense if you work with one company code but want to use one text for several forms. In the
gure above, the standard text "ADRS HEADER" was used, for example.

You can de ne standard texts for several forms, and specify (depending on the dunning area and company code involved)
which text should be used in the form.

You are advised to do this if you work with several company codes that use the same form. Three steps are necessary to
do this:

Create the company code-speci c standard texts.

When con guring the dunning program, specify which standard text is to be used for which company code.

In the text element, enter a standard variable for the standard text (see the table below). Depending on the
company-code in question, the print program replaces the variable with the name of the standard text.

The variables for the company code-speci c standard texts that you specify in the text element are prede ned in the system:

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Standard text for Symbols in the Text Element

Letter header REGUD-TXTKO

Sender in the letter window REGUD-TXTAB

Signature line REGUD-TXTKO

Footer REGUD-TXTFU

Text Elements for Special Windows: Graphic

Text Elements in the Main Window

The MAIN window contains a series of text elements. Each element is indicated by /E in the format column and a number in the
text area (see the gure below). The print program will then print these text elements in the form, providing they are de ned in
the print data set.

 Example

You de ne text for order checks and checks in the check form. If the print dataset contains information for the payment
method "check", the program uses the text for checks.

The following table contains some text elements for a check form from the MAIN window.

Text elements in the MAIN window

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510-O Text for order checks

510-C Pre-numbered checks

510-S Text for checks

515 Heading for line item information

525 Line item information

By using various text elements, you can use the same basic forms for similar payment methods, differentiating them simply by
inserting different text elements (speci c to the payment method being used) in the MAIN window. The print program
determines the correct text element on the basis of the speci cations stored under the payment method being used. As an
example, the gure below shows how the text elements are de ned for the MAIN window in the check form.

If you want to de ne your own form and use text elements speci c to the payment method, you should keep to the following
conventions when creating the text element name:

The rst three characters are determined by the program.

These characters are followed by a hyphen.

You then specify the payment method. In the USA, for example, you could enter C for check and O for order check.

For the forms, the print program always uses the text elements that have been speci ed for the payment method in question.
Text elements that are to be printed out for all payment methods which use this form should be entered as a three-digit number

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only.

The text elements that can be used for forms are already de ned in the system. All that you can change for each text element is
the text. You can formulate this as you wish. You can nd further information in the documentation for the individual print
programs.

Check Forms: An Example

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Payment Run Data for the Form Printout

The data from the payment run that you require for the form printout is provided by the payment program. The payment
program stores this data in the following structures after each payment run:

REGUH

contains the information on the payment, such as the payment method, payment document number and payee. The
payment program creates a REGUH record for each payment.

REGUP

contains the information on the paid items, such as the amount, cash discount and invoice document number. The
payment program creates a REGUP record for each paid item in a payment.

REGUD

contains derived values that are not contained in the above-mentioned structures. These include information from the
business partner bank master record, amounts with protective asterisks, or amounts without editing characters for the
OCRA line. This structure is lled by the print program, and deleted after the payment transfer medium is printed.

SPELL

contains the payment amount in words.

All the elds in these structures can be used as symbols in the form. You can also transfer eld contents from any of the
con guration tables in the system. The prerequisite is that these are read by the appropriate print program.

For the corresponding form, text elements have been de ned for the individual windows as follows:

1. HEADER, ADDRESS and FOOTER

For this window, company code-speci c standard texts have been de ned. See Text Elements for Special Windows:
Graphic (3) . The names of the texts have been speci ed for each window (dependent on the company code) in the
con guration of the payment program. When the form is printed, the print program determines and inserts the
appropriate text.

2. MAIN

The MAIN window contains several text elements: one text element each for the address text, the header line, the line
item information and the total amount.

The document numbers, dates, currency keys and amounts are provided after the payment run. Symbols have been
de ned in the appropriate text elements for this data.

For example, the variable &REGUP-BELNR& has been entered for the document number and the variable &REGUP-
BLDAT& for the document date.

3. CHECK

The CHECK window contains the information that is printed on the actual check. Symbols have been de ned in the text
for such information from the payment run. Using these symbols, the print program determines the check number,
account number, bank number and amount, for example.

Modifying the Forms

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The standard system contains an appropriate country-speci c form for every standard payment method. These forms can be
copied and modi ed as necessary. The new form must then be allocated to the respective payment methods using the company
code-dependent de nitions: see Form Printing Speci cations . You can change the standard texts, the position of the windows
or the highlighting of individual words and letters. If you need other information from the payment run in your forms, you can
insert the appropriate symbols in your text elements. This allows you to use the eld contents from the structures REGUH,
REGUP, REGUD SPELL and FASBE for your form. You can see which elds are contained in the above-mentioned structures
using the ABAP Dictionary.

Form Printing Speci cations

How to Adapt a Form

If you cannot use the standard forms in the SAP system, you must create your own forms. You can do this by copying the
standard forms and modifying them where necessary.

Carry out the following steps from the initial SAP menu:

1. Choose Tools Word processing Layout sets .

2. You reach the initial screen for word processing.

3. Specify the name of your form and select Create/change .

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4. Your forms should begin with the letter " Z". This is a protected name format that is not used by SAP.

5. A dialog box appears. Here you enter a customer development class or specify that you will be using a local private
object.

6. You reach the display of the general de nitions for the form.

From here, you can transfer speci cations and text elements from another form (e.g. the SAP standard form) into your form.

To do so, choose Layout set Copy from . Via the entry Goto you can select the required speci cations for your form.

Further information about how to adapt a form can be found in the documentation for SAPScript word processing.

Letter Header, Sender, and Footer

You determine your standard texts for letter header, sender and footer when you carry out the following steps from the initial
SAP menu:

1. Select Tools Word processing Standard text .

2. You reach the initial screen for word processing.

3. Specify the name of the text and select Standard text Create/change .

4. You reach a screen for text entry.

Further information for changing or entering standard texts can be found in the documentation for SAPScript word processing.

You can specify the standard texts directly in the text elements if you are not using different texts for different company codes.

To specify the standard texts for each company code, carry out the following steps in Customizing for Accounts Receivable and
Accounts Payable:

1. Choose Con gure payment program .

2. You reach the initial screen for the con guration of the payment program.

3. Choose Company codes Paying .

4. A list of the paying company codes is displayed.

5. Select the company code you require.

6. Choose Goto Sender details .

7. Enter the names of the standard texts for letter header, sender and footer.

8. Save your entries by choosing Company codes Save .

If you use company-code-dependent standard texts, you must specify the corresponding symbols in the text element for the
print program (see the table below).

Symbols for Standard Texts

Standard text for Symbols in the Text Element

Letter header REGUD-TXTKO

Sender in the letter window REGUD-TXTAB

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Footer REGUD-TXTFU

Displaying Fields from REGUH, REGUD, and

REGUP
In order to display the elds from the les REGUH, REGUD and REGUP, proceed from the initial SAP menu as follows:

1. Select Tools ABAP/4 Workbench .

2. Next, select Dictionary

3. Enter one of the above-mentioned les as an object name, select the eld Table and then select Display .

The elds in the structure are displayed. The eld names which you can use for the forms are in the rst column.

Creating Variants
You must create at least one selection variant for every print report. You specify this variant later (for the payment form print
run) when entering the parameters for a payment run.

In order to de ne a variant proceed from the initial SAP menu as follows:

1. Choose System Services Reporting. The ABAP/4 Program Development screen appears.

2. Enter the report name, for example RFFOD__S , and then select Goto Variants .

3. You reach the screen for processing your variant. The report name has been transferred.

4. Enter a name for the new variants and select Variants Create .

5. The screen for entering the selection criteria and the speci cations appears.

6. Enter your criteria and make your speci cations. Then press the CONTINUE push-button.

You reach the screen for maintaining variant values. Enter a short description of the variants in the Meaning eld.

7. Save your variant by selecting Variant Save .

Note

Leave the Run date and Identi cation elds in your variants free. These elds are lled dynamically when the program is run.

Print Control
You can carry out a payment run for different company codes, payment methods, and business partners even though different
forms or data carriers may have to be printed or created for each payment method and company code. You can specify this
later by entering selection variants for the data medium print programs.

The variants contain a series of selection criteria that are used to separate the data in the print data set. Separate print jobs
are created in print administration for each variant called up from a data medium print program. Each print request is displayed
in print management with the form description. See Country-Speci c De nitions for the Payment Method: Graphic (4) . You can
call up the print jobs individually for printing.

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Note

You carry out the payment run for the payment methods "check" and "order check". The payment program creates a print
le for this payment run. Since each payment method uses speci c forms, you de ne a separate selection variant for each
payment method for the print program RFFOD__S. The system places a print request in print administration for each variant
(see the gure below).

You de ne the selection variants when you con gure the payment program. You can de ne as many variants as you require for
each print program but you must de ne at least one.

Besides the company code and the payment method, you can use other selection criteria for each variant:

Payment document check . Only posted documents are selected for printing.

House bank . Only payments processed via the speci ed house bank are selected. This may be necessary, for example, if
house banks require special forms or if you want to create diskettes for the data medium exchange for several banks.

Accounts . Only documents containing the speci ed bank account are selected.

Currency key. You use this criterion if you print forms with pre-printed currency keys. You can separate the print jobs per
currency via the criterion.

Payment document number . You use this criterion, for example, if you want to print certain payment documents
separately.

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You make certain printing speci cations for each variant. These include:

Forms to be printed. You specify which additional forms (payment advice notes or payment summaries) are printed when
you use this variant. You specify the printer on which each form is printed. Alternatively, you can select Print immediately
.

Number of sample printouts. With line printers, it is advisable to run at least two sample printouts to enable you to
adjust the forms correctly on the printer.

Language in which the text is printed. You can specify that the addressee's language (which is entered in his/her master
record) is used. Otherwise, the print program selects the language of the sender.

Currency key. If you do not already use ISO codes for your currency keys, you can specify that the ISO code is used in the
printed payment forms.

You can also de ne variants for those programs created by the payment list, the payment proposal list, and the exception list.
Variants are not absolutely necessary for these programs.

Payment Program Settings

You initially need to make some basic decisions for each company code used by the payment program. The setting of tolerance
days for the payment of payables is one such decision. Since the payment program can be used for more than one company
code, you must also specify the company code that is making the payment.

Further control over the payment program can be achieved if you specify the following:

How open items are selected, and if required grouped together for one payment

The payee

How the payment method is selected

How the bank is selected

Which forms and other data carriers are used

You make these speci cations when:

Con guring the payment program

Entering data in your business partner master records

Entering data in the open items

Entering data for the payment run

Company Code Speci cations

When con guring the payment program, you specify the company codes that are involved in automatic payments and also
which company code makes the payments (paying company code).

General Company Code Speci cations

For each company code using the payment program, some general information is required, i.e. information that is not
speci cally linked to a payment method. For example, you specify which special G/L transactions are included in the payment

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run (see the gure below, (1) ).

In some organizations, one company code carries out the payment transactions centrally on behalf of several company codes.
Consequently, you must specify the paying company code for each company code (see the gure above, (2)) . This speci cation
is also required even if you do not make payments centrally; In this case the paying company code you enter is identical to the
company code. For more information on this, see Cross-Company Code Payments .

Speci cations for the Paying Company Code

You specify how the paying company code makes the payment (see the gure below, (1) ). Here, for example, you specify
minimum amounts for incoming and outgoing payments. The payment program only makes a payment for the company code if
the payment is within the amount limit set.

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Note

Further amount limits can be set for the payment method. (See Company Code-Speci c De nitions for the Payment
Method: Graphic (1)). The narrower range always applies.

Selecting Open Items

Use
The payment program identi es the open items and selects the items to be paid. Items are always paid as late as is possible
without losing cash discount. You specify the exact time of payment when con guring the payment program.

Features
Criteria for Selecting Open Items

The selection of open items is affected by several factors:

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The due date of the items is always determined via the baseline date and the terms of payment in the open items. The
payment program calculates the cash discount periods and the due date for net payment.

You can specify company code-speci c grace periods for payables. See Company Code Speci cations (2) .

The grace period is added to the due date calculated. Consequently, the payment can be made at a later date.

A minimum cash discount percentage rate can be speci ed for outgoing payments per company code . See Company
Code Speci cations , ( Outgoing payment with cash discount from).

If you cannot achieve the speci ed minimum percentage rate, you pay on the due date for net payment. You use the
minimum cash discount percentage rate if the net term is more advantageous to you than a possible cash discount. If a
minimum rate has not been speci ed, the program pays with the highest possible cash discount.

You can de ne which special G/L transactions are to be taken into account. You do this by entering the special G/L code
of the transaction in question when you make the company code speci cations. See Company Code Speci cations (1) .

The payment program can make a down payment in response to a down payment request. The special G/L code for
down payment requests must then be entered as the transaction for which payment is to be made. If you want to use
the payment program to clear down payments, you will need to enter the codes used for this transaction.

For each payment run you specify the date of the next payment run. The program uses this date to determine whether
an item is to be included in the current or the next payment run.

Selecting Items to be Paid:

Use

The time at which an item is paid depends on several factors:

Whether it is a payable or a receivable

With payables, the items selected are those which:

Taking the grace period into account, achieve a higher cash discount if paid in the current payment run than if paid in the
following run. You can limit the selection of items further via the minimum cash discount percentage rate.

Would be overdue in the following payment run (after allowing for the grace period).

A special rule applies for invoice-related credit memos: The item is always due together with the invoice it is linked to.

All other open items are paid in the next payment run.

For receivables, the payment program always pays soon enough to secure the highest possible cash discount. The payment is
made with the rst payment run that is carried out on or after the due date of the rst cash discount term.

Which strategy you use to decide between cash discount payments and net payments.

Whether you make bill of exchange payments before the due date. Read the topics on bills of exchange.

Company Code Speci cations

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Cash Discount Strategy

Use

When con guring the payment program you can always set up one of the following strategies for outgoing payments:

Make payments with the highest possible cash discount.

Make payments as late as possible even if this means losing cash discount.

Make payments according to a strategy which is somewhere between these two extremes.

If the highest possible cash discount is desired, ag the eld Max. Cash Discount : see Company Code Speci cations: Diagram
The payment program applies cash discount term 1 to these open items.

If you have speci ed a minimum percentage rate (see Company Code Speci cations: Diagram , Outgoing payment with cash
discount from ),the payment program settles items only if the discount percentage rate entered can be reached in the current
payment run. If not, payment is made when the amount is due net. If you wish to make payment as late as possible, enter 99

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percent as the minimum percentage rate (during payment program con guration). This determines that payments are always
made net.

You can also use the minimum percentage rate to de ne strategies that lie between the two extremes (maximum discount or
due net).

Example: Selecting Items to be Paid

You have to pay several items, which are due on different days:

Item 1 was due 2 days ago

Item 2 is due today

Item 3 is due tomorrow

Item 4 is due in 4 days

Item 5 is due in 10 days

You have speci ed three days as a grace period for settling payables. The next payment run is to be made in seven days.

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The payment program pays in the current payment run those items with a due date between the current payment run and the
day before the following payment run (allowing for grace periods).

 Example

With a three day grace period

In this case, the payment program pays items one through three. These items were not considered for the previous payment
run since the grace period permitted a later payment. Allowing for the grace period, the fourth item is not due for seven
days, i.e. the day of the next payment run, and will therefore be paid then. The fth item can be paid in the next payment run
or at a later date.

With no grace period

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If you do not de ne a grace period, the payment program would have paid the rst item in the previous payment run. Items
two, three and four will be paid in the current payment run and item ve in the next run.

Processing Payment Requests

Like invoices, payment requests are paid by the payment program when the due date is reached. The system also checks to
ensure that the corresponding invoice is not scheduled to be paid in the next payment run, and has not already been paid. If a
payment request cannot be made for one of the reasons already mentioned, it will appear on the payment proposal exception
list. In such a case, you should cancel the request, since payment cannot be made.

You can also make partial payments for previously posted invoices. To do this, you rst block the invoice from payment, and then
enter a payment request for the partial amount.

Blocking Open Items

Use

You block the items that, regardless of their due date, you do not want to pay. To do this, you enter a blocking key in the item
that represents the reason for blocking. If you want to block the account of a customer or vendor from payment, you enter the
blocking key in their master record.

The standard system contains several blocking keys, which you can add to or change.

The payment program creates a payment proposal during the payment run. The payment is made on the basis of this payment
proposal list. The blocked items are displayed separately in the list. You can process the payment proposal, and, for example, set
or cancel the payment block on an item.

It is also possible to specify that a blocking key cannot be changed from the payment proposal transaction.

Notes on Clearing Dates

On the whole, the payment date is used as the clearing date. There exist, however, the following exceptions.

Items whose posting date comes after the posting date of the payment run will be paid, provided they are already due.

The clearing date for such payments is not the payment date, but rather the latest posting date possible. Thus any danger of
the clearing date coming before the posting date is prevented in the context of paid items. Errors are avoided in this way.

Grouping Open Items and Individual

Payments
Use
Wherever possible, the payment program will always group items together for payment. However, you can also specify that an
individual payment (a separate payment) is made for a particular item. Indeed, for certain payment methods such as the POR
procedure in Switzerland and the PBC procedure in Denmark, only individual payments are possible.

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Features
The payment program can only group together open items for payment if the open items in an account have the same:

Currency

Payment method in the item

Bank in the item

Contents of the grouping elds (if a grouping key is speci ed in the customer or vendor master record)

You can also pay open items from different company codes together, as well as customer and vendor line items.

Items in an account are not grouped together if you:

Make payments separately per business area. This procedure entails separate payments being created per business
area.

Want to make individual payments

Note

Items in which a payment method is speci ed are not grouped with items in which no payment method is speci ed.

Grouping Open Items Under Grouping Keys

Use
You can use grouping keys to group together the open items of a customer or vendor that should be paid together.

A grouping key is used for example during loan management, when automatic debit at the vendor is carried out separately
according to loan numbers.

Prerequisites
1. You de ne the required grouping key in Customizing for Financial Accounting under Accounts Receivable and Accounts
Payable Business Transactions Outgoing Payments Automatic Outgoing Payments Payment Method/Bank Selection
for Payment Program De ne Payment Groupings .

2. Enter the required grouping key in the vendor and customer master records for which you wish to group open items.

To do this, in the vendor or customer master record select Company Code Data Payment Transactions and enter the
required grouping key in the Grouping Key eld.

Features
When you de ne a grouping key, you must specify a maximum of three elds from table BSIK (vendors) or table BSID
(customers). Those open items for which the contents of these elds match are grouped together.

Cross-Company Code Payments

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Use
If one company code pays centrally for others in your organization, all the open items of a customer/vendor that exist in several
company codes are paid together, provided:

Prerequisites
You have speci ed the same paying company code for all participating company codes (see the topic "General Company
Code Speci cations" in Company Code Speci cations ).

The company codes are located in the same country

The local currencies and where appropriate, all parallel currencies, are identical

Features
The paying company code is the one that settles the open items; the postings to the bank accounts and sub-accounts are made
to this company code.

Either the paying or the "sending" company code (i.e. the company code against which the receivable exists) can function as the
sending company code:

If the paying company code should also be displayed as the sending company code for the customer/vendor, you should
specify it as a sending company code.

If you do not specify a sending company code, the system automatically takes the paying company code as such. If this is
the case, the open items are grouped together in a single payment. With such a payment you cannot see from the
payment transfer medium which company code owed the payable.

If you want to specify which company code owes the payable to the customer or vendor, specify this company code as the
sending company code.

If you do this, all the items which have the same paying and sending company codes are grouped together for payment. A
separate payment form is generated for these items.

On payment advice notes, a note is recorded stating for which company code the payment is made, (for the sending
company code). This is not possible in the case of other payment forms. If necessary, you can con gure the payment
program in such a way that a payment advice note is also printed in the case of other payment forms.

 Example

Company code 0001 pays additionally for company codes 0002 and 0003. Company code 0001 should be entered for itself
as both paying and sending company code in this situation. For company codes 0001 and 0002, company code 0001 is the
paying company code. The company codes themselves are entered as the sending company codes. This ensures that a
separate payment is made for each sending company code. The sending company codes are listed in the notes in the
payment advice notes.

The standard forms for the payment advice and the check with payment advice contain a separate text element for the note on
the sending company code. If you de ne your own forms, and want such a note, you must add this text element to them.

Clearing Customers and Vendors

Use
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If you run a vendor as a customer at the same time, you can offset the open items. Under this procedure, receivables and
payables are offset against each other. If a credit balance results a payment is due. If you have a debit balance, you draw up a
debit memo, providing all the other conditions for this have been ful lled.

Prerequisites
You must enter the account number of the other business partner in the master record.

The Customer/Vendor eld is in the general area on the Control screen.

In both master records, the option for clearing between customer and vendor accounts must be selected.

The Clrg with vend./Clrg with cust. eld is in the company code-speci c area.

Local Payment
Use
Unless you specify otherwise, where an organization has both a head office and branches, the payment program pays via the
head office: This means that the information required by the payment program is taken from the master record of the head
office. Postings are always made to the head office account.

It is also possible to pay locally, with the payment program making payments for each branch separately.

Prerequisites
Select the eld Local processing in the vendor/customer master record under Company code data → Correspondence .

Features
During local payment, all speci cations (bank details and address) are determined from the master record of the branch.

There are two ways that you can de ne the payment methods:

If you want to arrange separate payment methods for each branch, you should enter these in the branch master records
only.

If all the branches of an organization use the same payment methods, enter these in the head office master record only.

If payment methods are de ned in both the branch and head office master records, the branches can use any of these methods.

Separate Payment by Business Area

Use

You can determine that open items are paid separately by business area for every paying company code. See topic "General
Company Code Speci cations" in Company Code Speci cations . The payment program then makes separate payments per
business area.

Individual Payment
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Use

Open items are paid individually according to the following prerequisites:

With the POR procedure, individual payment is the only possible payment method. The payment method must be
classi ed accordingly. You must specify in the master record of the customer/vendor that the customer/vendor receives
payments with the POR procedure.

If you always want to pay the open items for a customer/vendor individually, you can determine this in the company code-
speci c area of the master record. To do this, you mark the eld Individual payment .

If you want to pay one of the open items individually with a certain payment method, de ne this payment method as
individual payment. See Company Code Speci cations for the Payment Method: Graphic (5). This payment method must
be entered in those open items that are to be paid individually.

 Example

You want to pay individual items with a separate check. De ne a second payment method for check in addition to the
standard payment method, for which you set the same speci cations and also de ne as an individual payment. Enter this
payment method in the open items for which a separate check is to be created.

Alternative Payee
On occasions, you might not want to send payment to a vendor (invoicing party) for a payable that exists.

In general, the payment recipient and the invoice issuer (vendor) are identical. However, a payment can also be effected for an
alternative payee. For this to happen, you must rst specify the alternative payee. In the standard system you can specify the
alternative payee in the following ways:

Entering the data (name, address, bank details, and so on) in open items, if this is the only item to be paid to an
alternative payee

Entering the account number of the alternative payee in the company code-speci c area of the master record of the
vendor, if an alternative payee is only necessary in certain company codes for the vendor.

Entering the data (name, address, bank details, and so on) in the general area of the master record of the vendor, if
payments are to be made to an alternative payee.

The above information is listed in order of priority. For example, if an alternative payee is speci ed in open items, this has
priority over the speci cation in the master record. The same applies to customers.

If you want to enter the alternative payee in the line item, the eld Payee in document must be marked in the general data area
of the vendor or customer master record. This makes it possible to enter the necessary master data for the payee by marking
the eld Alternative payee when posting to the customer or vendor account.

Note

If you clear between customers and vendors, the payment program always uses the speci cations from the vendor master
record. No entries are contained for one-time accounts for the payment recipient in master data. These speci cations are
entered during the creation of a document. The payment program then determines the payee from the information given in
the document line item. You must enter the possible payment methods in the master record of the one-time account.

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Notes on the Payment Method

You can de ne payment methods in the master record or in the open items.

In the master record you can either:

Specify a single payment method, if, for example, you have already de ned a speci c payment method with a business
partner, or

Specify multiple payment methods, one of which will be selected by the payment program according to your
speci cations during the payment run. The manner in which the payment program selects a payment method is
explained in Selection of the Payment Method by the Payment Program

If you specify a payment method in the open items , it will override the speci cation in the master record. A payment method
de ned in the open items must not exist in the master record.

Caution

The payment method with which you want to pay must always be speci ed in the customer or vendor master record or in the
open item.

Selection of the Payment Method by the

Payment Program
Use

Before every payment run you must specify which payment methods may be used in the payment run. If a payment method is
speci ed in open items or in the master record of the customer/vendor and if that payment method is permitted for that
payment run, the payment program selects this payment method. The payment method in the open items takes precedence
over any payment method de ned in the master record.

If several payment methods are speci ed in the master record and none in the item, then the payment program selects a
payment method. The program checks (in the sequence in which you entered them) whether each of the payment methods you
speci ed for the payment run can be used. To be able to be used, a payment method must satisfy the following conditions
(among others):

The payment method must be speci ed in the customer/vendor master record or open items.

The master record must contain the speci cations needed for the payment method. See topic Country-Speci c
De nitions for the Payment Method .

For foreign payments, the payment program checks whether the payment method in question allows payments to
customer/vendors or banks located abroad. See Company Code Speci cations for the Payment Method

In the case of payments in foreign currency the payment method must be allowed for foreign currency payments. See
Company Code Speci cations for the Payment Method

The permissible minimum and maximum amounts must be adhered to for the payment amount. See Company Code
Speci cations for the Payment Method

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For payment, a bank permissible for the payment method under consideration is determined. Read Bank Selection to see
how banks are selected for a payment method.

If one of the speci ed payment methods meets all the above conditions, this payment method is used. Otherwise, the program
carries out all the checks for the next payment method in the list you entered.

Sample Payment Method Selection

You have to settle a payable of 3,000 USD owed to a vendor. The master record of the vendor speci es that the payment
methods "check" and "transfer" are allowed. No payment method is speci ed in the item.

During the payment run, you specify the payment methods "transfer" and "check". The following values are speci ed for the
payment methods:

Transfer Check

Minimum amount 5.00 0

Maximum amount 1,999.99 9,999,999.00

Foreign payment not possible possible

Specs. in master record Bank details none

Number of items per form 2 99

The payment program checks the payment methods in the sequence you entered them during the payment run. The amount
cannot be transferred as the payment amount (3,000 USD) is above the maximum amount possible for transfer (1,999.99
USD). The item can be paid by check if a suitable house bank can be determined for it. Read the topic Bank Selection

Bank Selection
For payment transactions you need house banks and possibly the bank details of your customer/vendors. House banks are the
banks with which your company code maintains an account. To learn how to de ne your house banks, see the step “De ne house
banks” in the Implementation Guide under General Ledger Accounting in the activity “De ne House Banks”. Depending on the
payment method used, you may need the bank details of your customers/vendors. For example, you need the bank details of
your customer/vendor, but not for clearing checks. Enter the bank details of your customer/vendors into the master records.

You can put as many bank details entries into the master records as you want, both for your company codes and for your
customer/vendors. You can determine the bank that is selected by

an explicit speci cation in the master record of the customer/vendor or in the open items. The speci cation in the item has
higher priority.

The payment program, which determines according to speci ed rules, the most suitable house bank or the optimal combination
of house bank and customer/vendor's bank.

See also:

Bank Details in Open Items

Selection of Bank Details of the Customer/Vendor by the Payment Program

Bank Details in the Customer/Vendor Master Record

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Selection of House Bank by Payment Program

Optimizing Bank Selection

Check Available Amounts

Value Dates

Value Dates in the Customer/Vendor Master Record

Sample Bank Selection

Bank Details in the Customer/Vendor

Master Record
Use

In the master record of the customer/vendor, you can make as many bank detail entries as you want. If the payment
transactions should always be carried out by a customer/vendor's bank , only specify this bank.

If you only want to allow one house bank to carry out payment transactions with a customer/vendor, enter this bank in the
master record of the customer/vendor. The correct eld for this is in the company code-speci c area of the master record.

Bank Details in Open Items

Use

You can specify the bank details of the business partner in the open items simply by entering a bank type in the item. The bank
type is a feature that you can assign freely for all of your customer or vendor's banks. If a bank type is speci ed in the item, a
bank with the same bank type is selected from the master record for payment (see the gure below).

If there are several banks speci ed in the customer/vendor master record, some with and some without a bank type, the
system rst checks those banks in the master record that do not have a bank type for purposes of paying documents that also
have no bank type speci ed. Banks with a bank type are only used if the master record contains none of the former type.

If you want to specify the paying house bank in the item, you can enter the appropriate bank ID there (see the gure above).

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Selecting the Bank Details of a Business

Partner
Use

If the payment method being used requires the customer/vendor’s bank details and these have not been speci ed, the payment
program selects the bank details allowed for that method. The bank details allowed must be speci ed in the customer/vendor
master record. The payment program selects the bank details that meet all the requirements of the payment method:

If a collection authorization is necessary for the payment method, the customer/vendor master record must contain a
collection authorization for bank details.

If only bank details for banks located in the same country are allowed for the payment method, the payment program
selects an appropriate bank.

If the payment method speci cations require the bank to be a postal check office or postal giro office, the payment
program selects an appropriate bank. You determine in the bank master data whether a bank is a post office bank.

If, after all the criteria have been checked, the payment program chooses several banks, it uses the rst bank that ful lls all the
terms. If the payment being used also requires the program to select the optimal bank for payment, further checks, involving
the house banks, are necessary. Read the topic Optimizing Bank Selection .

Selecting the House Bank

You specify which house banks are allowed for every payment method or, if you prefer, for both payment method and currency.
You should sort this list of permissible banks in ranking order according to priority. See the gure below, ( 1) . For every
combination of payment method and house bank, specify via which bank account (for example giro or foreign exchange account)
the payment should be made. See the gure below, ( 2) .

For every account at a house bank, specify the amounts that are available for the payment run. See the gure below, ( 3) .

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The payment program determines the house bank in the same sequence:

1. First it determines the bank ID (house banks) based on the payment method and currency. If it nds no entry for the
combination, it checks the bank for payment method without currency speci cation, if such an entry exists.

2. It determines the account ID on the basis of the bank ID, the payment method and the currency.

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3. Finally, it nds out whether sufficient amounts are available for both bank ID and account ID.

During the payment run the payment program therefore attempts to determine a house bank and a bank account that has a
sufficient amount available for payment. This may result in the following possibilities:

No house bank is found that ful lls all terms. The payment cannot then be made with the payment method with which
the check was carried out. The checks are carried out for the next possible bank. If no bank is determined, the payment
method can not be used. If another method is available, it will then be checked as well. This is noted in the log for the
payment run.

One house bank only is determined. The payment is made via this house bank.

The program produces a list with house banks. The payment is made from the house bank with the highest priority
according to the de ned ranking order of the banks. This is not the case if payment optimization has been speci ed.
Read the topic Optimizing Bank Selection

Optimizing Bank Selection

Use

For every payment method you can specify for each company code whether the program should select the optimal bank for
payment. Optimization can be by bank group or by postal code. See Company Code-Speci c De nitions for the Payment
Method: Graphic

Optimization by bank group helps ensure that money is transferred from your house bank to your customer/vendor’s bank as
fast as possible. In order to do this, assign a bank group (that is freely de nable) to all banks in your master records.

Optimization by postal code ensures the house bank is selected according to the customer/vendor’s location.

Optimization by Bank Group

If you specify optimization according to bank groups for a payment method, the payment program selects two banks that
belong to the same bank group. If several house banks come into consideration, the bank with the highest priority (ranking
order) is selected. If an optimization is not possible, the optimization function does not apply.

 Example

In the rst part of the gure below, two banks belong to the same bank group: The Bank of America belongs to the bank
group BA as a house bank and also as the bank of the customer/vendor. The Bank of Chicago belongs to the bank group BC.
In this case, the payment program selects the Bank of America, i.e. the bank with the higher priority. The second part of the
gure shows a combination for which optimization is not possible. The payment program selects the house bank with the
highest priority without taking optimization into account.

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You determine which bank group a bank belongs to in the master data of the bank. You should set up the groups in such a way
that the nancial transactions can be processed between the banks of the same group rapidly. In Germany, for example, the
banks that belong to the same giro network are assigned to the same bank group.

Optimization by Postal Code

If a certain payment method speci es optimization by postal code, the payment program selects a house bank based on the
postal code area of the customer/vendor. If no house bank is de ned for the postal code area of the customer/vendor, or if the
selected house bank cannot be used, the payment program selects the house bank with the highest priority from the priority
list. In this case, optimization does not take place.

For this type of optimization, you must assign your house banks to a range of postal codes (see the gure below).

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Available Amounts
Use

The payment program checks whether the selected bank accounts have sufficient funds for payment.

For your accounts at the house banks you can specify available amounts separately for incoming payments and outgoing
payments (see the gure below). For outgoing payments, you de ne the size of the amount that can be paid. For incoming
payments, you specify the amount up to which such payments can be made to a bank account. If this limit is exceeded, the
payment program selects another bank. The speci cations you make concerning available amounts determine which bank
account should pay. You should ensure that these amounts are up-to-date before every payment run.

The payment program does not carry out amount splitting. If the amount on a bank account is not sufficient for a payment, the
payment program selects another bank account. If it nds no bank account from which it can post the entire amount for a
payment, it does not carry out the payment.

You can specify the amounts based on currency and probable value date ( days ) at the bank. The value dates are the difference
between the posting date of the payment run and the probable value date (value date at the bank).

Note

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You can use value dates to plan available amounts on a graduated time scale. You generally only need this facility if you post
payments by bill of exchange before the due date. In all other cases, you can enter 999 .

The speci ed value dates are the maximums in each case.

Value Dates
Use

Value dates are the number of days that elapse between the posting date of the payment run and the value date at the bank.

Value dates are used by the payment program in two different ways:

The payment program adds the number of days needed for the payment to be debited from your account to the posting
date of the payment run and thereby establishes the value date of the payment. This date is noted in the payment
document. Such information is particularly important for the Cash Management and Forecast application. If no value
dates are determined, the posting date of the payment run is selected as a value date.

In addition, the payment program needs the value dates to check the available amounts. See the topic Available
Amounts .

You de ne the value dates either based on your experience of previous payments made with that payment method, bank
account, payment amount and currency (see the gure below), or you can allow the value date to be determined automatically
by the system, which will use a bank calendar and individual agreements with the bank as decision criteria.

 Example

Payments that are made by transfer are debited from your bank account on the next day. This occurs regardless of the
amount. That means that for payments made with this payment method, the money must be available the next day. For this
payment method, you should enter 1 in the eld Days to value date (see the gure above). The period within which a check is
cashed can be dependent on the amount. For amounts of up to 5,000 USD, the time between the posting date and the value
date is three days. For all other amounts, the value date is within two days of the posting date (see the gure above).

Value Dates in the Customer/Vendor Master

Record
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Use

When processing checks, the system allows you to enter (per customer/vendor) the number of days your expect to pass
between the posting date and the value date. You enter the number of days in the eld Check cashing time . The payment
program uses this to calculate the probable value date. If no entry is made in this eld, the number of days is determined by
reference to the standard entry. See topic Value Dates

Sample Bank Selection

You have to settle the following payables:

Vendor Amount Currency

Vendor 1 20,000 USD

Vendor 2 20,000 USD

Vendor 3 12,000 USD

Vendor 4 3,000 USD

Vendor 5 6,000 DEM

In the vendor master record, the payment method "check" is speci ed.

The following amounts were planned for your bank accounts:

The payment program then determines, for the combination of payment method and currency, bank details and a bank account
that has the required amounts available.

The payables are settled from the following bank accounts:

Selection of the bank account for payment

Vendor Amount Bank ID Remaining amount after

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Payment to account

Vendor 1 20,000 USD CM 30,000 USD

Vendor 2 20,000 USD CM 10,000 USD

Vendor 3 12,000 USD BA 88,000 USD

Vendor 4 3,000 USD CM 7,000 USD

Vendor 5 6,000 DEM CB 6,000 DEM

You want to directly debit amounts from a bank account with various value date periods. Transfers (value date within one day)
and bills of exchange (due within 90 days) are to be debited from the account.

Plan an amount of 30,000 USD for transfers. For paying bills of exchange, you should plan on amount of 100,000 USD. The
following payments should be made in the payment run: 10,000 USD to vendor 1; 20,000 USD to vendor 2; and 40,000 USD to
vendor 3.

The transfers to vendors 1 and 2 will be made from the aforementioned account. The payment program will select a different
bank account for the transfer to the third vendor.

Speci cations for Posting Payments

Use
The payment program posts payments and related postings such as those for tax, tax adjustments, exchange rate differences,
or cash discount) automatically.

Prerequisites
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To enable these postings to be made, you must rst enter the following information:

The bank or bank subaccounts to be posted to

The document type to be used for posting the payments

Whether exchange rate differences are posted. For further information on con guring the payment program for
exchange rate differences, see the topic Posting Exchange Rate Differences: Payment Program

Bank Accounts and Bank Subaccounts

Use
It is advisable to use bank subaccounts for posting incoming and outgoing payments.

If you do not use subaccounts, set up your standard bank accounts in the payment program con guration menu. See House
Bank Selection by the Payment Program

This includes among other things the accounts for outgoing checks, outgoing transfers, incoming checks and bank collection
(see the gure below).

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Using subaccounts has the following advantage: you can reconcile the balance of the account at your bank with the balance of
your corresponding G/L account at any time. The subaccounts ensure that all incoming and outgoing payments are only posted
to the G/L bank account when the money is actually debited from/credited to your bank account. This transfer posting from the
clearing account to the bank account is made when you receive the appropriate account statement from your bank.

Bank Accounts and Bank Subaccounts: Example

Prerequisites
To use bank subaccounts, create subaccounts with whatever degree of differentiation you require. You can create, for example,
a bank subaccount for each bank or for each bank and a group of payment methods. The charts of accounts delivered with this
package provide a reference for such differentiation.

You must specify the account number so that the payment program can post to the appropriate bank subaccount (see the
following gure). This posting is made on the basis of bank ID, payment method and if appropriate, currency.

Subaccounts are generally managed on an open item basis and with line item display, since you want to be able to see via these
accounts at any time whether a business transaction has been completed.

Notes on the Sort Sequence of Items in Bank Subaccounts

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If bank subaccounts that are usually posted to by the payment program (for example, the account for outgoing transfers) have
a special sort sequence, it is easier to process them when posting the bank statement.

The documents from the payment run contain the date and identi cation number (such as 19940301-ID) of the payment run in
their document header text ( eld BKTXT ). You can have the system automatically transfer this information to the Allocation
eld in the line item if you de ne a corresponding item sorting rule and enter this in the G/L account master record.

Subsequently you can, when entering a bank statement, select via the Allocation eld all the outgoing transfers from a certain
payment run in order to clear them.

Posting Separately by Business Areas

If you have determined that the payments for a certain company code should be made separately per business area, then the
bank posting is made to the business area of the paid items.

If you do not separate the payments by business area, you can specify that the bank postings should be made to one particular
business area. To do so, specify the required business area for the bank account (see the gure above).

Note
This speci cation is only effective if you do not already pay separately by business area.

In all other cases the postings to the bank subaccounts are carried out without reference to business areas.

Bank Accounts and Bank Subaccounts:

Example
You settled a payable amounting to 5,000 USD by check. The payment was posted to the subaccount for outgoing checks and to
the vendor account (see the gure below). The payable on the vendor account was cleared with this procedure.

After the check amount is actually debited from your bank account, you post it to the corresponding G/L bank account and
select the corresponding check on the outgoing checks account (see the gure above).

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During clearing, the system posts the amount to the bank subaccount "outgoing checks" and clears the posted item on this
account.

The check is now marked as cashed. Your G/L bank account only contains those amounts which have actually been debited from
your bank account.

Notes on the Sort Sequence of Items in Bank

Subaccounts
If bank subaccounts that are usually posted to by the payment program (for example, the account for foreign bank transfers)
have a special sort sequence, it is easier to process them when posting the bank statement.

The documents from the payment run contain, in their document header ( eld BKTXT), the date and identi cation number (for
example, 19940301-ID) of the run. You can have the system automatically transfer this information to the Assignment eld in
the line item if you de ne a corresponding item sorting rule and enter this in the G/L account master record.

Subsequently, when entering a bank statement, via the Assignment eld, you can select all the foreign transfers from a certain
payment run in order to clear them.

Posting Separately by Business Area

Use

If you have determined that the payments for a certain company code should be made separately per business area, then the
bank posting is made to the business area of the paid items.

If you do not separate the payments by business area, you can specify that the bank postings should be made to one certain
business area. To do so, specify the required business area for the bank account (see the gure above).

Note

This speci cation is only effective if you do not already pay separately by business area.

In all other cases the postings to the bank subaccounts are carried out without reference to business areas.

Document Type for Payments

Use

You specify the document type which the payment program should use for posting the payments when making the country-
speci c speci cations for the payment method. The document type must be de ned using internal number assignment.

You can specify two document types for cross-company code payments. One document type is used for the document in the
paying company code, the other for the clearing postings in the other company codes.

Posting Exchange Rate Differences: Payment

Program
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Use

Unless you specify otherwise, the payment program posts the exchange rate differences arising from foreign currency items. It
does this by determining the difference between the rate at the time of posting and that when the item is paid. In order to
determine the local currency amount at the time of payment, the payment program uses the exchange rates de ned in the
system.

If you do not want the exchange rate differences to be posted, you should specify this for the paying company code. See
Speci cations for the Paying Company Code . If you do so, the payment program calculates the equivalent payment amount in
local currency on the basis of the local currency amounts in the paid items.

If the items to be paid have been reevaluated in the course of balance sheet preparation work, the adjustment postings to the
receivables and payables accounts are reversed when the item is paid. At the same time, in order to determine the payment
amount in local currency, the system also reads the valuation difference noted in the item.

Note

If the payment program posts exchange rate differences, these actual exchange rate differences are noted in the cleared
item. Such exchange rate differences are only temporary because the nal difference can only be calculated when the bank
statement is posted. It follows that you may have two exchange rate difference postings. If the payment program does not
post any exchange rate differences, the cleared item does not then contain any information on realized differences. The
exchange rate differences are not posted until the bank statement is posted. This method does not allow you to assign the
differences to affiliated and non-affiliated companies for example. Further, it is not possible to retroactively assign the
exchange rate variances to the business areas or cost centers which generated them.

Consistency Checks: Payment Program

Use

During con guration of the payment program the checks usually carried out in the SAP System are performed. This includes a
check as to whether the keys entered are de ned in the system. If necessary the system issues a warning or error message.

 Example

You enter a document type for the payment postings that has not yet been de ned. The system will issue an error message.
If, however, you have speci ed for the bank posting a bank subaccount that has not yet been created, the system merely
warns you.

After con guration of the payment program, you can have the system run a consistency check. During this, the system checks
whether keys were entered during the con guration of the payment program that have since been deleted from the system.

 Example

You enter a business area for the bank posting. If you then delete this business area, you should also remove the
corresponding entry from the payment program con guration. The consistency check shows you the appropriate key.

During the consistency check, the system runs the same checks as it did for the con guration.

You can request an additional log for the payment run. If the program did not settle certain open items, the reasons for this are
detailed in this log. You can decide how to rectify the situation on the basis of this information.

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Authorizations: Payment Program

You can assign authorizations for con guring and running the payment program. For further information see Con guring the
System Using the Implementation Guide under Financial Accounting Global Settings → Authorization Management .

Currency for Payment

Use
You use this function if you wish to use the automatic payment facility to make payments in which the currency of the items to
be paid is different from the currency of the payment.

This enables you, the payer, to ful ll your obligations to pay in any of the currencies currently at your disposal.

You can either come to a general agreement with your vendor about which alternative currencies can be used, or make
separate arrangements for individual cases about the payment currency and, if necessary, the payment amount.

You can specify an alternative payment currency in the open item. You can also specify an amount. This states the equivalent of
the gross amount of the open item in the payment currency.

Integration
The payment currency function is supported in both Accounts Payable (FI-AP) and Accounts Receivable (FI-AR).

In the liquidity forecast in the Treasury component (TR-CM-CM-CM-LF), the expected payment ow for customer or vendor
open items is normally stored in the relevant document currency.

Prerequisites
You must make the following settings in Customizing for Financial Accounting (FI):

Field Selection

You need to change your eld selection settings for those reconciliation accounts and posting keys for which you are
permitted to enter a payment currency or the amount in the payment currency. The Payment currency and Amount in
payment currency elds are maintained under the category payment transactions.

Rules for Changing Documents

If you want it to be possible to change the payment currency and amount in payment currency elds at a later date, you
must maintain the document change rules for those elds. When you are making the settings, please note that it is only
worth making a change if the document item has not yet been cleared.

Selection eld, search eld, sort eld

You can de ne the new elds as selection eld, search eld and sort eld for the clearing transactions and for displaying
line items.

Account Determination

The system automatically creates document line items for amount differences that arise from prede ned amounts in
payment currency. You de ne the relevant accounts in Customizing for Financial Accounting in the activities De ne
Accounts for Payment Differences with Alternative Currency and De ne Clearing Accounts for Payment Differences
with Alternative Currency.

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Features
Payment Currency for Document Processing

You can specify an alternative payment currency and an amount in the payment currency for line items that can be paid
automatically. You can enter any currency except the document currency.

If an amount in payment currency is speci ed, this takes the place of the gross amount in the payment program. This means
that cash discount and withholding tax may be deducted from the amount on payment.

The amount in payment currency is subject to a plausibility check. The gross amount in document currency is translated into
payment currency. The translation is calculated from document currency local currency payment currency . The system uses
the exchange rate contained in the document header for the rst step of the calculation, and the current average rate from the
exchange rate table for the second.

If the amount you entered differs from the amount calculated as above by a percentage rate that exceeds the tolerance
speci ed in the company code table (maximum exchange rate difference) the system displays a suitable warning message. The
message settings can be changed, so you can suppress the message or change it into an error message if required.

For more information on setting system messages, see the Implementation Guide (IMG) for Basic Settings Financial
Accounting under Change Message Control for Document Processing .

When entering invoice-related credit memos, the system uses the payment currency. If an amount in payment currency is also
entered in the invoice, the system enters an appropriate amount in the credit memo.

 Example

Invoice amount 100 USD Amount in payment currency 180 EUR

Credit memo amount 20 USD Amount in payment currency 36 EUR

You can change the payment currency and the payment amount in a line item provided this is permitted by your Customizing
settings for document change rules.

Payment Currency in the Payment Program

The payment program determines the payment amount for a line item with a prede ned payment currency as if the line item
was posted in the payment currency. Since not all the amounts required are in the payment currency, the system carries out the
following conversions automatically:

Gross amount of the line item Insofar as no amount in payment currency is prede ned in the line item, the system
determines the amount when you run the payment program.

Payment currency is the local currency, and In this case, the system adopts the local
company code settings specify that currency amount as the amount in the
exchange rate differences are not to be payment currency.
posted when clearing in local currency.

Payment currency is the local currency, and In this case, the system converts the
exchange rate differences can be posted document currency amount into the local
when clearing in local currency. currency using the current exchange rate.
The resulting amount will normally differ
from the original posting amount in local
currency.

Payment currency differs from local In this case, the amount in document
currency currency is converted into the payment

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currency using the current exchange rate.
The translation is calculated from
document currency local
currency payment currency .

Cash discount amount, cash discount base, So far as they exist, these amounts are shown in document currency. Once the amount in
base amount for withholding tax payment currency has been calculated, these three amounts are then recalculated.

If both the payment currency and the amount in payment currency is prede ned, then a new type of difference amount arises
when you post the payment. The prede ned amount will generally differ from the amount that results from conversion at
current exchange rates. The difference represents an overpayment or an underpayment, as agreed with your business partner,
and is automatically posted by the system. As for exchange rate differences, difference amounts exist in local currency only. To
enable the automatic posting to be made, you need to specify a difference account in Customizing. See also:Payment currency
posting example 1

The following scenarios exist for automatic posting:

Exchange rate differences are posted in the payment program

In this case, the local currency amount to be posted to the bank sub-account is determined by converting the payment amount.

If the speci ed difference account is not tax-relevant, the whole difference amount is posted as one line item in local currency:
Payment Currency: Posting Example 1

If the speci ed account is tax-relevant, the tax is calculated from the difference amount (in the same way as cash discount):
Payment Currency: Posting Example 2

Exchange rate differences are not posted by the payment program

In this case, the local currency amount to be posted to the bank sub-account is the total of the local currency amounts of the
line items to be paid, minus cash discount and withholding tax.

If the speci ed difference account is not tax-relevant, or if a difference account has not been speci ed, the system does not
generate a difference posting. In Payment Currency: Posting Example 1, the local currency amount in the bank subaccount would
be changed to 1800 EUR.

If the speci ed difference account is tax-relevant, the posting to the bank subaccount is changed (1800 EUR instead of 1776
EUR), as well as the posting to difference account 2 (24 EUR instead of 0 EUR). See also:Payment Currency Posting Example 3

Manual clearing

If you clear an item in a currency other than the currency it was posted in, then for clearing processing, the system converts the
amounts into the clearing currency at the current exchange rate. This conversion does not take place if the clearing currency is
the same as the prede ned payment currency, and you also entered an amount in payment currency. In this case, the system
uses the prede ned amount in payment currency.

As a result, the same difference postings can result as occur using the payment program (if this program is permitted to post
exchange rate differences).

For line items for which a payment currency is prede ned, this is used in place of the document currency. The expected payment
amount is equal to the amount in payment currency minus the expected cash discount deduction. If an amount in payment
currency has not been entered, the system translates the amount in document currency into payment currency and uses this
instead of a speci ed amount. The translation is calculated from Document currency Local currency Payment currency .

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Special Features When Paying by Bill of

Exchange
Use

Payment by bill of exchange varies from country to country. Two different procedures can be distinguished:

Bill of exchange issue before due date

Bill of exchange issue on due date

Bill of exchange issue before due date

In countries such as France, Spain, and Italy, bills of exchange are issued directly after the invoice is issued. The drawer (payee)
is thus able to pass on the bill of exchange to a bank for re nancing as early as possible. He pays the bill of exchange charges.

When settling payables by bill of exchange, the bill of exchange payable is drawn up at an early stage and sent to the vendor.

For bills of exchange receivable (bill of exchange is drawn on the customer), the bill of exchange is printed by the payment
program and then either:

Sent directly to a bank for re nancing. This bill of exchange receivable is referred to as a bank bill.

Sent to the customer for acceptance. This bill of exchange receivable is referred to as a bill of exchange payment
request.

Bill of exchange issue on due date

In Germany and Austria, bills of exchange are not issued until the invoice is actually due (the due date of the bill of exchange will
be later than the due date of the invoice). The payer thus gains from the fact that his receivables are paid later on the bill due
date. He is liable for the bill charges, though. In the payment program, this procedure is only used for bills of exchange for
outgoing payments.

If you use this procedure, bills of exchange payable and bills of exchange for the incoming check/bill of exchange procedure are
printed.

The special features to be noted for the above-mentioned procedures during the payment program are described below.

The preparations necessary for posting bills of exchange and the procedure to be followed is described in Special G/L
Transactions: Bills of Exchange

Bills of Exchange Payable: Payment Program

Settings
Bills of exchange payable are issued at different times depending on the country in question. In Germany and Austria, it is
common not to issue the bill of exchange until the due date for payment of the invoice (the bill of exchange due date will be
later than the invoice due date). In other countries, in France, Italy, and Spain for example, bills of exchange are issued after
receipt of invoice. The bill of exchange payment occurs before the bill due date You determine when the bill of exchange is
issued by the payment program when con guring the payment program.

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In contrast to the other payment methods, there are some special features that must be noted for bills of exchange payable.
The following is true of bills payable:

There must be a separate payment method classi ed for "bills of exchange".

The bill liability that is created for you at the bank and printed on the bill of exchange should be posted to a separate
bank subaccount and a clearing account.

The payment program needs additional speci cations for the posting such as the special G/L indicator for the bill
payable.

The following is only of importance for bills of exchange issued before the due date:

You can determine a bill of exchange limit for each customer/vendor; no bills may be issued for amounts above this limit.

You can determine which open items are grouped together for payment by bill of exchange.

You can specify a due date period (which must then be entered for any open items to be paid in order that they are paid
by bill of exchange.

You can specify charges, which are printed out on the bill of exchange forms (common in Spain).

Bills of Exchange Payable: Global Settings

Bank Accounts and Bank Clearing Accounts

When you use a bill of exchange to settle a payable, this payable is converted into a bill of exchange payable. The payment
program clears the original payable from the vendor account and posts a bill payable to this account at the same time.

Two further postings are also created automatically for the bill of exchange posting depending on the system con guration: The
rst of these is a posting to a bank subaccount . This account displays the bill liability for each bank. It allows you to monitor
when an out ow of funds is to be expected. The offsetting entry is made to a corresponding clearing account , so that the
document has a zero balance. The posting to the bank subaccount is especially necessary for the Cash Management and
Forecast application component, which is thus informed about the expected out ow of funds due to payment by bill of exchange.

If you want the payment program to create these postings, you must select the option Post bill liability to the bank in the
company code speci cations for the payment method. (In Company Code-Speci c De nitions for the Payment Method: Graphic
, you can see the settings for the payment method Check . When viewing data for the payment method Bills of exchange , you
see that additional elds are displayed for bills of exchange).

You should de ne the numbers of the accounts according to the company code, bank, payment method and currency in
question. See the gure Bank Subaccounts for the Payment Program .

Issue Date and Due Date (Date of Maturity)

The payment program enters the issue date and due date (day of expiration) into the bill of exchange. You can specify both
dates manually during the payment run.

Additional Posting Speci cations

You should de ne the special G/L indicator required by the payment program for a bill of exchange posting to the vendor
account when you make the country-related speci cations for the payment method. See Country-Speci c De nitions for the
Payment Method: Graphic (3)

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The posting keys that the payment program needs for bank postings, posting the bill payable to the vendor account and the bill
liability to the bank are already speci ed in the standard system.

Bank Subaccounts for the Payment

Program

Settings for Bills of Exchange Payable Prior

to Due Date
Use

Bill of Exchange Limit

In the customer or vendor master record, you can specify a bill of exchange limit that determines the maximum amount for
which a bill of exchange may be issued. If the amount to be cleared is over this maximum, the payment program splits the
amount and issues further bills of exchange.

This makes sense if your vendor has an agreement with his house bank that bills of exchange are only cashed up to a certain
amount. Limits for bills of exchange are used in Spain, for example.

Grouping Together Several Open Items

You specify whether certain open items should be grouped together for payment by bill of exchange via the speci cations for
the paying company code. See the topic Speci cations for the Paying Company Code (2) . You can specify that a single bill of
exchange should be created

For all invoices within a certain due date interval. The intervals are to be speci ed during the payment run.

For all invoices which are due the same day.

For every invoice.

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Issue Date and Due Date

The issue date and the due date are entered into the bill of exchange by the payment program. You can specify both dates
manually during the payment run. This is necessary for the date of issue once per payment run. You can select from the
following alternatives for the due date:

Specify before the payment run if invoices should be grouped together by due date interval. You should specify a due
date for each bill of exchange in each interval.

Do not specify a date if you want the due date to be taken from the paid invoices. All invoices that have the same due
date are paid with a single bill of exchange.

Due Date Interval for Open Item Selection

To ensure that the payment program only issues a bill of exchange if this can be used for re nancing , you can specify for an
item the minimum and maximum period (in days) before the due date for payment. See the gure Speci cations for the Paying
Company Code (3) Only items that ful ll this condition are paid with a bill of exchange. This should ensure that the bill of
exchange has a life which allows the vendor to deposit it at the bank for re nancing.

Charges

Charges can be designed as country-dependent or related to a speci c house bank. You can calculate charges at the
presentation of a bill of exchange, in order to:

Check the bank settlement

Print the charges on the bill of exchange form. This is required in Spain, for example.

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Checks/Bills of Exchange Payable: Payment

Program Settings
If the payment program is used to pay by check/bill of exchange, the bill of exchange is printed but not posted.

The bill of exchange does not need to be posted since you rst send it to the vendor together with the check and wait for it to be
returned. The payment program only supplies the data for printing the bill of exchange.

For the payment method "check/bill of exchange", the following special features are to be noted for the payment program:

The payment method must be classi ed as a payment method for check/bill of exchange.

The issue date and due date for the bill of exchange are entered by the payment program into the bill of exchange. You must
specify them as a parameter for the payment run.

The payment program must enter a bank and a bank account number on the bill of exchange. When de ning the ranking order
of the banks, you can specify the bank and the bank account number for the payment method "check/bill of exchange" (see the
gure below). To do this, specify the key for your house bank and the key for the corresponding bank account. The bank may be
different from the bank on which the check is issued. If no bank details for the check/bill of exchange are available, the payment
program also enters in the bill of exchange the bank for the check.

You must specify which form is used for check/bill of exchange when making the speci cations for the payment methods in
each company code. See the gure Form Printing Speci cations (1) .

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Bank Bills and Bill of Exchange Payment

Requests: Payment Program
Use

In France, Spain and Italy, the following bill of exchange receivable procedures are used:

Bank bills

You can issue the bill of exchange and submit it to a bank for discounting without it having been accepted by the customer. This
procedure is used if such an agreement was made with the customer.

Bill of exchange payment request

You issue the bill of exchange and send it to the customer for acceptance. Only once the customer has accepted the bill of
exchange do you post it.

The payment program can create both these types of bills of exchange.

Both bank bills and bill of exchange payment requests enable customers to gain a longer payment period. The due date is
generally xed later than for standard invoices. The customer pays the receivable by bill of exchange far in advance of the due
date for payment. With this procedure, the due date of the bill of exchange is equal to the invoice due date. You receive your
money earlier since you can discount the bill of exchange immediately. Any bank charges incurred thereby are payable by you.

Bank Bills: Special Features

Use

Bank bills are issued by the payment program. They are drawn up as soon as possible after invoice. If you wish, you can have the
payment program clear the invoices paid with the bill of exchange or rst create a noted item. See topic Bill of Exchange
Payment Requests: Special Features In the customer account, a note is made in the noted items that a bill of exchange was
issued. The actual posting is only made if the amount was credited to the bank account.

If the payment program has already cleared the invoices, it notes the bill of exchange document number in the invoice line
items. This enables you to establish with which bills of exchange the invoices were cleared. If a bill of exchange is not honored
you can cancel the payment by bill of exchange and post a new receivable for every corresponding invoice to your customer.

Bill of Exchange Payment Requests: Special

Features
Use

A bill of exchange payment request, (that still awaits acceptance by the customer) is marked as a noted item in the customer
account and the special G/L account for bills of exchange receivable. No transaction gures are updated. Nor are any open
items yet cleared, since the customer may not accept the bill of exchange or choose to modify it.

The payment program issues the bill of exchange payment request (bill of exchange without acceptance). It also copies the
document number of the bill of exchange payment request into the invoice line items that are to be cleared with the bill of
exchange. See the gure below.

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The bill of exchange is accompanied by a payment advice, which informs the customer about which invoices should be paid with
the bill.

Bill of Exch. Pymt Requests, Bank Bills, and

the Payment Program
Note the following features when making payment by "bank bill" or "bill of exchange payment request":

You can combine several open items for payment. You determine the criteria according to which the items should be
grouped for each paying company code.

You can specify which due date the items must have in order that you are paid with a bill of exchange. You should also
specify this criterion for the paying company code.

You can also enter a bill of exchange limit, beyond which no bills of exchange are issued. You enter the speci cations for
this in the master record of the customer.

Before the payment run, enter the issue date and due date (day of expiration).

The payment program needs bank details in order to print a bill of exchange. You enter the speci cations for this in the
master record of the customer.

In order to make automatic postings, the payment program needs posting keys and special G/L indicators. These
speci cations are already de ned in the system.

A prerequisite for posting bill of exchange payment requests and bank bills is that the payment methods are classi ed
accordingly.

Special Speci cations for the Paying Company Code

You set whether certain open items should be grouped together for payment by bill of exchange via the speci cations for the
paying company code. See the topic Speci cations for the Paying Company Code (2) . You can specify that a single bill of
exchange should be created

For all open items that lie in a due date interval. The intervals are to be speci ed during the payment run.

For all invoices that are due the same day.

For each invoice

In order that you can use the bill of exchange for re nancing, the bill of exchange due date must not be too far in the future. On
the other hand, bills of exchange with a due date in the near future should be issued as a bill on demand so that they can be
submitted for payment immediately.

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Via the speci cations for the paying company code, you determine the maximum number of days before the due date an item
may be paid with a bill of exchange. See Speci cations for the Paying Company Code (3) . In addition, you should specify how
many days from the start of the payment run a bill of exchange should be created as a bill on demand. The payment program
adds the speci ed days to the posting date of the payment run and compares the result to the bill due date.

Issue Date and Due Date for Bill of Exchange Payment Requests, Bank Bills, and the Payment Program

The issue date and the due date are entered into the bill of exchange by the payment program. You can specify both dates
manually during the payment run. This is necessary for the date of issue once per payment run. You can select from the
following alternatives for the due date:

Specify before the payment run if items should be grouped together by due date interval. You should specify a due date
for each bill of exchange in each interval.

Enter * if you want the program to average the due date on the basis of the paid invoices.

Do not specify a date if you want the due date to be taken from the paid invoices. All invoices which have the same due
date are paid with a single bill of exchange.

Special Speci cations in the Customer Master Record

The payment program puts the bank details of the customer and the account number into the bill of exchange automatically.
The program transfers the rst bank details and their account number from the master record of the customer, unless bank
details are speci ed in the item.

In addition, you can specify a bill of exchange limit in the master record of the customer. This determines the maximum amount
for which a bill of exchange can be issued. In some countries, there are agreements between the bank customer and his/her
house bank that a bill of exchange is only cashed up to a speci ed maximum amount. In these cases, enter a bill of exchange
limit into the master record of the customer. If the amount to be cleared is over this maximum, the payment program splits the
amount and issues further bills of exchange.

Posting Keys and Special G/L Indicators

The posting keys that the payment program needs are stored in the system. There are keys for the following postings:

Bill of exchange payment request to the customer account and the special G/L account

Bill of exchange posting to the customer account and to the special G/L account

The special G/L indicator that the payment program uses for posting the bill of exchange payment request must be speci ed in
the country-speci c speci cations for the payment method.

In the standard system it is the special G/L indicator R . A special G/L indicator must also be stored for the bank bill . In the
standard system this is the special G/L indicator W .

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