SAP Vendor Payment Process-

Configuration, Development

Author : AUMTECHSOLUTIONS.COM
SAP FI, CO, Treasury training: www.aumtechsolutions.com
SAP FI, CO, Treasury training: www.aumtechsolutions.com
SAP FI, CO, Treasury training: www.aumtechsolutions.com

• Invoice : Accounts Payable department receives vendor invoice. This is entered in SAP
system (Tcode : FB60 / MIRO). Invoice becomes due for Payment on it’s due date.
Invoice due date is calculated based on terms of payments in the invoice. If terms of
payments is 15 days from Document date, than invoice becomes due for payment 15
days after it’s document date
• Payment Method : Payment method in this case is Check
• Positive Pay File : Positive pay file is a list of check numbers generated by payment
program. An electronic file is generated of these check numbers and sent to bank. This
can be done through manual upload on bank website or through FTP, EDI or any other
method.
SAP FI, CO, Treasury training: www.aumtechsolutions.com

• Payment Method : Payment method in this case is ACH or Wire

• ACH : Stands for Automated Clearing House. It is form of Electronic payment in USA

• Wire Transfer : It is a form of Electronic payment. Wire transfer results in fund transfer on
the same day, whereas ACH may take 2-3 days for fund transfer. Wire transfer is more
expensive than ACH.

• Payment Process: Accounts department runs the payment program generally on fixed days
(Every Tuesday / Thursday). Payment program picks the vendor open invoices which are due
for payment on the payment run date. It than creates a Payment advice which can be sent
electronically (Email) for through mail to the vendor. It also creates an ACH payment media
file. File can be manually uploaded on bank website or electronically sent to the Bank (EDI,
FTP…). Based on data in the file bank makes payment to the Vendors. Banks also sends and
electronic confirmation (email) of the payment file receipt.
SAP Payment Process – Configuration

• Steps in SAP Payment Process Configuration

• Define Bank Key – FI01
• Define the House Bank – FI12
• Set up All company code –FBZP
• Set Up Paying Company code –FBZP
• Set Up Payment Method per Country –FBZP
• Set up payment Method per company code –FBZP
• Set up Bank Determination –FBZP
• Define Value Date rules – FBZP
• Update new Payment Method in Vendor Master – XK02
SAP Payment Process Configuration – FI01
• Bank Country : US
• Bank Key : CITIUS33456
• Bank Name : Citibank
• Street : 111 Wall Street
• City : NEW YORK 10004
Define House Bank– FI12
• House Bank : BANKE. These are banks through which payments
are made in payment program. House Bank is associated with
country US through Bank key CITIUS33456
• Bank Name: Citi Bank
• City : New York
• Company Number: Enter company code number in Company
number field
Define House Bank– FI12..Cont
• Company Code : 3000
• House Bank : BANKE
• ACCOUNT ID : CHECK
• Description : Citibank Checking Account
• Bank Account number : 3580073 (Account number
received from bank)
• Currency : USD
• Control Key : 01 ( Checking Account, 02 for Saving
Account)
• GL Account : 113023 (Account to which bank
transaction figures are updated)
• Bank country US
• Bank Name : Citibank
SAP Payment Process Configuration – FBZP- All Company Codes

• Company code : 3000. Company code for which Payment

program configuration settings are made
• Sending Company Code : 3000. Company code sending the
payment to the vendor. Can be same or different from
paying company code
• Paying Company Code : 3000. Company code which makes
payment to vendor. This is generally same as sending
company code. In case of centralized payments there can be
one company code making payments for various other
company codes.
• Outgoing pmnt with cash disc. from : .2%. Only items that
have a cash discount percentage rate greater than or equal
to the one specified here are paid with the cash discount
deducted. If the percentage rate is less than the one
specified here, payment is made at the due date
• Vendors: Sp. G/L transactions to be paid : FA.
SAP Payment Process Configuration – FBZP- Paying Company Codes
• Paying Company Code : 3000. Can click on right to see the listing
of all company codes for which it will act as paying company code
• Min amount incoming Payment : 1. If amount less than specified
here, it is listed in the exception list.
• Minimum amount outgoing payment : 1.If payment amount less
than one specified here, line items that make up this amount are
listed in the exception list.
• No exchange rate differences : Select. If the indicator is not
selected, the difference between the exchange rate at the time of
posting and the exchange rate at the time of payment is
determined for items which are posted in foreign currency. The
exchange rate differences which have been determined are
automatically posted for each payment.
• Form Payment Advice : F110_US_AVIS. Name of the SAP script
used to create a payment advice note in this company code.
SAP Payment Process Configuration – FBZP Payment Method per Country
• A PM define how a payment will be made to the
vendor. Standard payment methods are Check, ACH,
Wire Transfer as discussed in slide…
• Pymt Method : E (Wire transfer)
• Payment method for : Outgoing Payments
• PM Classification : Bank transfer
• Required master data : Select Bank details as vendor
Bank account number and routing number are required
in the payment file online transfer of funds by Bank
• Payment Medium : Leave blank. Select Payment
Medium workbench. Format of file (Z_IDES) will be
created using DMEE tool later in the course.
• Document Type for Payment : ZP
• Clearing Document Type : ZV
• Currencies Allowed : If no currency is specified here all
currencies are allowed for making payment. To restrict
currencies used for payment, specify them in
currencies allowed tab.
SAP Payment Process Configuration – FBZP Payment Method per
Company Code
• Min. Amount : Minimum amount required to use the Payment
method
• Maximum Amount : maxi amount that can be paid using the
method
• Single payment for marked item: All line items for which the
Payment method is entered explicitly during document entry get
paid separately
• Foreign Business Partner allowed : When selected payment can be
made to vendors outside company code home country. In this case
vendors outside USA
• Foreign currency allowed: When selected payment program can
make payments in currency other than company code local
currency.
• Cust/ Vend Bank aboard: Used for international wire transfer
payments. Select where the vendor bank to which payment has to
be made is outside company code country ( USA).
• Use F1 for more details on any of the SAP fields
SAP Payment Process Configuration – FBZP Bank Determination

• Ranking Order: Here maintain the house bank from which

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