SAP ERP Financials: Value date calculation

logic during automatic payment process

(APP)
Posted by Vinod Vemuru Apr 9, 2014
Assumption: Reader is aware of basic "Automatic Payment Process" concepts.
Most of us are familiar with online banking transactions. There would be thousands of bank transactions
happening 24/7. Did you ever think, how does payment reaches a bank/payee, if it is done on a bank holiday
or on a Sunday (Global holiday in most of the countries)? Usually banks refer to value date while making
a payment to payee instead of transaction date. In case of real time transfers, value date and transaction
date are same. In case of payments with say check, value date may be in future as well. Aligning this kind
of requirement to SAP, usually payments are handled in SAP through automatic payment program (F110) or
manual payments (F111). To understand the complete process in a better manner, first we need to understand
few terminology used in payment process.
Payment media: This is the means of communicating the payment related information to bank. This would
have information like payee details, bank account, amount to be paid etc.
E.g.: Payment media can be sent to bank through payment IDOC, flat file, XML file etc.
Value date: This is the date on which bank has to dispatch the money to payee account. Please note that
payment media is sent in advance to the date on which payment is to be made to payee. How many days
before a payment media should be sent to bank is controlled through configuration.
Payment advice: This is the communication sent to payee/accounting clerk (In some cases where vendor
doesn't have e-mail address) stating with the details of the payments done (List of paid invoices, amount,
payment currency etc.) and to which bank account payment is made. This helps the payee to stay updated
about the payment progress.
Usually, F110/F111 is run on a weekday and payment media is generated immediately and sent to bank. But,
bank will start the payment process on the value date mentioned in the payment media.
Value date configuration and calculation logic:
Value date can be calculated in two different ways.
1. Without bank calendar
2. With bank calendar

Generated by Jive on 2015-02-07+01:00

1

SAP ERP Financials: Value date calculation logic during automatic payment process (APP)

Value date calculation without bank calendar:

Go to below path in FBZP.

Enter required company code and proceed. In the next screen, you can assign the number of days to be added
to value date.
By default, value date is same as posting date entered in the payment run. Number of days can be assigned at
payment method, House bank, account ID, Amount and currency level.
We can assign different number of days for different amount limit for the same account , currency and payment
method
E.G: All checks (Check payment method) up to 100000 USD should be paid on 1 day after the payment run
and 100001 USD onwards, should be paid 2 days after the payment run. This feature helps to manage the
cash flow and funds in a better manner and wont cause sudden plunge of bank account balance
due to unexpected huge payments. Business will have enough

Generated by Jive on 2015-02-07+01:00

2

SAP ERP Financials: Value date calculation logic during automatic payment process (APP)

time to analyze the funds situation at any point in time.

Value date calculation with bank calendar:

This has two steps.
Configuring value date rules:
Go to value date rules from FBZP as shown below. Enter the company code and proceed.

Enter the house bank, account ID, Transaction name(Free field).

Generated by Jive on 2015-02-07+01:00

3

SAP ERP Financials: Value date calculation logic during automatic payment process (APP)

Reference date for determining the value date: This can have below options.
1

Document date

2
3

Posting date
Due Date

Most of the cases, posting date is selected as value date base line date (Reference date).
Calendar 1: This is the factory calendar ID used for calculating the value date. Bank holidays defined in this
calendar are considered while calculating value date.
+ or sign indicates weather the number of days mentioned is to be added/subtracted.
E.G: If the value date reference is posting date, Payment run Posting date = 01.04.2014
Considering above screenshot,
st

If 1 April is a holiday as per calendar EC, then value date base line would be 02.04.2014.
st

If 1 April is a working day as per calendar EC, then value date base line would be 01.04.2014.
Deviation from reference date in days: Number of days mentioned here are added/subtracted based on the
sign column to the value date base line date.
From above example, value date calculation happens as below
st

If 1 April is a holiday as per calendar EC, then value date base line would be 02.04.2014, value date = value
date base line + 2 days = 04.04.2014
st

If 1 April is a working day as per calendar EC, then value date base line would be 01.04.2014, value date =
value date base line + 2 days = 03.04.2014

Generated by Jive on 2015-02-07+01:00

4

SAP ERP Financials: Value date calculation logic during automatic payment process (APP)

Once transaction name with the value date calculation rule is configured, next step is to assign this
transaction to payment method.
Go to below path in FBZP. Enter company code and continue.

Enter the payment method, Transaction, House bank, account ID and the transaction name created above.

Dont get confused with the transaction entered in second column with the one in sixth column.
The one in second column is used for distinguishing different types of transactions for the same
payment method. Below values are allowed here.
Space
1
2
3
4
5

Transaction not relevant

Bill/exch. for discount
Bill/exch. for collection
Check deposit at same bank
Check deposit in same region
Check deposit (general)

This allows to configure different value date rule for same payment method.
EG: If payment method A is used for check payments, check at same bank might need lesser time compared
to check in different bank in same region.

Generated by Jive on 2015-02-07+01:00

5

SAP ERP Financials: Value date calculation logic during automatic payment process (APP)

Usually transaction in second column is maintained as blank. The one in sixth column is used for determining
value date rules (Configured in previous step).
These steps completes the configuration of value date calculation. These rules would be used when payment
media is generated and during value date calculation.
Note: Custom logic can be written in payment user exits if standard customization doesn't meet the
requirement.

Your valuable comments and addition of more information on this blog is most welcome
You can also check the connected blog on Bank/Factory calendar creation.
Bank/Factory calendar creation: Step by step process
Thanks,
VV
4403 Views Tags: app, payment, bank, dme, f111, sap_erp_financials, f110;, erp_financials;sap, valuedate,
automaticpayment, valdt, paymentidoc, paymentfile

Ondrej Zatopek in response to Vinod Vemuru on page 6

Feb 4, 2015 12:15 PM
So did I. But it really started to work for me only after I ticked the box. I did not test the grouping itself with this
but I suppose that once you tick the box Single payment, there wont be any grouping.
Regards,
Ondrej
Vinod Vemuru in response to Ondrej Zatopek on page 6
Feb 4, 2015 2:51 AM
Thanks Ondrej. I was thinking, this would be used only for grouping of items. Will check further.
Thanks,
Vv
Ondrej Zatopek
Feb 3, 2015 10:37 AM
Hi Vinod,
very interesting blog. I was looking exactly for these settings. I would like to add one information. In order to be
able to set up value date using this customizing in FBZP you need to tick the box "Payment per due date" in
the FBZP -> payment method in company code customizing.

Generated by Jive on 2015-02-07+01:00

6

SAP ERP Financials: Value date calculation logic during automatic payment process (APP)

Regards,
Ondrej
Vinod Vemuru in response to Arvind Pereira on page 7
Nov 26, 2014 4:43 PM
Thanks buddy
Arvind Pereira
Nov 26, 2014 6:56 AM
Vinod,
I would be clicking the link "Share"

regards
Arvind Leo Pereira
Vinod Vemuru in response to Eric Yang on page 8
Nov 24, 2014 2:19 PM
Hello Eric,

Thanks a lot for the compliment

However, asking for points is against forum rules. Any article/blog can be rated , liked and provide the feedback
though comments as per reader's discretion. This would further motivate the author to post more knowledge
artifacts /enhance the skills in case of any better suggestions from readers. Some experienced readers do add
more information through comments.
If you feel this blog would of help to others, you can share the same from top right corner by clicking the link
"Share".
Thanks,

Generated by Jive on 2015-02-07+01:00

7

SAP ERP Financials: Value date calculation logic during automatic payment process (APP)

VV
Eric Yang in response to Vinod Vemuru on page 8
Nov 21, 2014 10:51 AM
What can I do for you? I think this doc completely deserves to increase your points in the forum.
Vinod Vemuru in response to Eric Yang on page 8
Nov 20, 2014 6:52 AM
Thanks Eric
Eric Yang
Nov 19, 2014 3:15 PM
Thank you very much! It is really a very useful document
Vinod Vemuru in response to Mehdi Zine on page 8
Aug 26, 2014 6:50 AM
Hello,
You can use the payment medium user exit to change the value date based on your logic.
Post complete requirement in forum to get more responses
Thanks,
VV
Mehdi Zine
Aug 21, 2014 5:59 PM
Hi Vinod,
My requirement is to handle value date depending on payment currency of the invoice and not the bank
account currency.
Have you an idea about this.
I look in standard but I didn't find.
I look also of possible user exit if you have to process value date.
Thanks in advance
lakshmi p in response to Vinod Vemuru on page 8
Jul 14, 2014 12:03 PM
Hi Vinod,
Great job and useful info its very easy to understand. Thanks to share your knowledge.
Lakshmi
Vinod Vemuru in response to hari chandan on page 8
Jun 23, 2014 7:21 AM
Thanks Hari

Generated by Jive on 2015-02-07+01:00

8

SAP ERP Financials: Value date calculation logic during automatic payment process (APP)

hari chandan
Jun 23, 2014 5:33 AM
Hi Vinod,
Thanks for sharing knowledge and such a good document. It's very helpful, presently working on APP
Vinod Vemuru in response to Sada Bandla on page 9
Jun 13, 2014 7:20 AM
Thanks Sada
Vinod Vemuru in response to C. Plato Brilla Bose on page 9
Jun 13, 2014 7:20 AM
Thanks Bose
Sada Bandla
Jun 10, 2014 1:12 PM
Hi Vinod,
thank you for sharing knowledge ,you have shared lot of information for scn users.
Regards
Sada Bandla
C. Plato Brilla Bose
Jun 4, 2014 3:41 AM
Thanks vinod god bless !!!
Vinod Vemuru in response to Halgin Thomas on page 9
May 12, 2014 8:45 PM
Thanks dear. Glad to know it is helpful
Halgin Thomas
May 8, 2014 1:23 PM
very helpful presently im working on APP this will help me....Thanks
Vinod Vemuru in response to Lakshmi Sama on page 9
Apr 18, 2014 8:37 AM
Thanks Lakshmi
Lakshmi Sama
Apr 16, 2014 7:25 AM
Hi Vinod,
Very informative and nicely articulated one.
Thanks for sharing such a good document. Expecing more contributions from your end.

Generated by Jive on 2015-02-07+01:00

9

SAP ERP Financials: Value date calculation logic during automatic payment process (APP)

Regards,
Lakshmi S
Vinod Vemuru in response to Sheli Sehrawat on page 10
Apr 16, 2014 7:02 AM
Thanks Sheli
Sheli Sehrawat
Apr 15, 2014 8:24 AM
Very informative and helpful document.
Very nicely written.
Thank you for the contribution
Vinod Vemuru in response to Mariks . on page 10
Apr 15, 2014 7:40 AM
Thanks Mariks
Mariks .
Apr 14, 2014 5:46 PM
Very good document...Thanks..
Vinod Vemuru in response to Diwakar reddy Redlapalli on page 10
Apr 10, 2014 11:10 AM
Thanks Diwakar
Diwakar reddy Redlapalli
Apr 10, 2014 9:01 AM
Hi Vinod,
Very informative document.
Regards
Diwakar
Vinod Vemuru in response to suresh lavu on page 11
Apr 10, 2014 6:49 AM
Thanks Suresh
Vinod Vemuru in response to Pankaj K Agrawal on page 11
Apr 10, 2014 6:49 AM
Thanks Pankaj

Generated by Jive on 2015-02-07+01:00

10

SAP ERP Financials: Value date calculation logic during automatic payment process (APP)

You are absolutely right. Even the most familiar screens might have hidden functionalities which we tend to
overlook.
Vinod Vemuru in response to Shiva Maryala on page 11
Apr 10, 2014 6:49 AM
Thanks Shiva
Vinod Vemuru in response to Mohammed Kalim on page 12
Apr 10, 2014 6:48 AM
Thanks Kalim
suresh lavu
Apr 9, 2014 1:47 PM
Hi Vinod,
Great Document and nice explanation with business process ..
Keep it up ..
Regards
Suresh Lavu
Pankaj K Agrawal
Apr 9, 2014 1:30 PM
Dear Mr. Vinodji,
Great Document, really very much helpful.
One thing got to be accepted in SAP, no matter, Million times we visit the screen, still when someone points out
and show that do you know here is one more treasure on the screen.
Really, you are a true treasure hunter sir,.
Thanks for sharing your valuable knowledge and experience which helps so many consultants.
Kindest Regards
p
Shiva Maryala
Apr 9, 2014 12:59 PM
Hi Vinod,
Excellent document...Really Helpful.

Thanks,

Generated by Jive on 2015-02-07+01:00

11

SAP ERP Financials: Value date calculation logic during automatic payment process (APP)

M.Shiva Kumar
Mohammed Kalim
Apr 9, 2014 12:57 PM
Hi Vinod,

Very informative document....Thanks for sharing...

Regards,
Kalim

Generated by Jive on 2015-02-07+01:00

12