Unit -1 : Automatic Payments

Lesson: Explaining the Automatic payment Run

1. Automatic payment Run- Overview
Invoices are entered
Open invoices are analyzed for due date
Invoices due for payment are prepared for review
Payments are approved and /or modified
Invoices are paid
2. Automatic payment program (APP) is a tool that helps handle mass transactions and
manage payables. The program runs in accounting at specific intervals and processes the
relevant transactions.
3. The SAP Payment program allows you to perform the following tasks automatically.
Select open invoices to be paid or collected
Post payment documents.
Print payment media, use data medium exchange(DME), or initiate electronic data
interchange(EDI).
4. Characteristics of SAP payment program:
It is for both national and international payment transactions with vendors and
customers.
It handles both outgoing and incoming payments
It allows us to define payment features vary from country to country ( Such as
Payment methods, Payment forms or data carrier specifications)
5. SAP payment program processing steps:
Maintain the parameters
Start the proposal run
Execute a debit balance check(optional)
Edit the proposal
Start the payment run
Schedule the print.
Lesson 2 : Maintaining Bank Accounts
1. Bank Master data Characteristics:
Each bank master record has a unique bank country and bank key.
Each bank master record includes address data and control data ( such as SWIFT
code, postal giro data and the bank group). This helps to optimize the payments in
Automatic payment program.( APP).
Bank master records are stored centrally in the Bank directory.

2. House bank : The banks your company uses are called house banks.
It contains following information.
Bank Master data
Information for electronic payment transactions
Bank accounts for each house bank
General ledger accounts for each bank account
EDI partner profiles and DME details. (Refer 1 page for EDI and DME full forms).
The payment program uses the house bank ID to determine which bank to use .
3. Points to be remember
Combination of house bank ID and account ID represent each bank account in
SAP ERP. Combination entered in G/L account represents the bank account in
general ledger.
G/L account must be created and assigned to the bank account and vice versa.
Both accounts must have the same account currency.
4. Vendor and customer Bank Accounts
When you enter the bank details in the vendor or customer master record. You
can access any banks that were already created in the bank directory. In this
scenario you only have to enter the bank country and bank key. System
automatically the name and address of the bank. If a bank is not in bank directory
choose the bank data push button in vendors or customer master record to add a
new bank.
Ways to create bank master data
You can enter bank information in vendor or customer master record or in
customizing for house banks.
You can enter bank information from a disk or tape using the program
RFBVALL_O.
Customers who use the lock box function can create a batch input session that
automatically updates customer banking information in master record.
Key fields for automatic payments Client level vendor master /Customer master
Address details
Bank country
Language
Bank key
Bank account no
International Bank Account Number ( IBAN)
Collection authorization.
Key fields for automatic payments Company code level Vendor master /Customer Master
Terms of payment
Payment methods
Payment block
Clearing with the customer or vendor
If a vendor is also a customer or vice versa you can have the payment program and the
dunning program clear the vendor and customer open items against each other. You can
also select the customer line items when you display the vendor line items for this
account.
Before you can clear items between existing vendor and customer account. You must
perform the following steps