Automatic Payment Process- Setting up Bank Determination for payment Transactions

 
The payment method configuration, and for that matter the SAP Automatic Payment configuration cannot be said to be completed until you are able to pay with the payment method you configured. You cannot pay with a payment method unless you assign it to a House Bank and a House Bank Account.
As a continuation on our series on SAP Automatic Payment Configuration http://sapgurus.com/sap-automatic-payment-program-configuring-the-payment-methods-in-company-code/, we will discuss the “set up Bank Determination in Payment Transactions” in this week’s post.
This configuration step basically involves assigning your payment method to your house bank account to enable that bank account to use the assigned payment method in its payment transactions.
 
Pre-requisite
 
We are assuming that the necessary House Bank and House Bank Account configurations are in place. If that is not the case, then perform the following step before proceeding with the Bank Determination setting.
 
1) Configuring your House Bank
Your House Bank is a bank in which your organization opens accounts with. Your house bank is represented in your system with a House Bank ID which is a maximum five character alpha-numeric key. Some countries have special requirements in defining the House Bank ID, for example a requirement to have certain combinations of numbers and alphabets.
 
Follow the menu path below to set up you house bank in the system.
IMG – Financial Accounting (New) — Bank Accounting — Bank Accounts — Define House Banks
Or use transaction FI12

 

 
Enter your company code and press enter.
 

 
Click on new entries.
 

 
a) Company Code: Enter the company code for which you are creating this house bank.
 
b) House Bank: Enter the house bank ID here. This is the ID you want to use in identifying this Bank. This can be wholly alphabet, numeric or combination of both. For the purpose of our discussion we will use a four character numeric identifier (0004).
 
c) Bank Country: Enter the code of the country where your house bank is located.
 
d) Bank Key: Enter the bank key of your house bank. Note that the bank key field is validated against the country specific rules maintained in the system. See the country specific checks in:
 
IMG — SAP NetWeaver — General Settings — Set Countries — Set Country-Specific Checks
 
Save your entries after maintaining all necessary fields. If your house bank is available in the bank directory, the other information like the bank’s address will be populated automatically.
 
Note: to configure your house bank, it is assumed that your house bank exists in the Bank Directory. If this is not the case, then you have carry out the step to update your bank directory.
IMG — Cross-Application Components — Bank Directory — Bank Directory Data Transfer — Transfer Bank Directory Data – International

Or use transaction BIC2
 
Alternatively create your house bank with transaction FI01 (especially if it is just one Bank that you want to use and it is missing from the directory). The menu path for this is:
Financial Accounting – Banks — Master Data — Bank Master Record — Create
 
2) Configuring your House Bank Account
Your House Bank Account is the individual account opened with your house bank. An organization may have multiple accounts (based on currency, for example) with one house bank. Your house bank account is represented in the system with an account ID, which is also a five character alpha-numeric key.
The house bank and the house bank account are configured in the same configuration step.
 

 
Select your house bank that you created in the above step and double click on Bank Accounts.
 

 
 
 

 

a) Account ID: Enter the account ID of your House Bank Account. This is a five character alpha-numeric field, which can be all alphabet, numeric or the combination of both. For our example we use all numeric account ID “00001”.
 
b) Bank Account Number: Enter the physical account number of your house bank account here. This is the account number as it will appear on the bank statement. It is important that the account number you input here is the same as what appears on your bank statement for your electronic bank statement setting to work properly (in case you maintain such a setting for your automatic bank statement upload).
 
c) Alternative Account Number: The alternative bank account number is used for differentiating house bank accounts with identical account numbers. This can occur if a house bank manages accounts in different currencies using the same account number.
 
d) G/L Account: Enter the G/L account created in your chart of account for your house bank account. It is assumed that this is already created. If it is not, create it using transaction FS00. It is a good practice to create at least three G/L Accounts to represent your house bank account. One of those accounts will serve as the main bank account that you assign in the G/L field here. The other two will serve as Intermediary accounts/ Bank Sub-accounts (one for Incoming payments and for Outgoing Payments). It is at the level of the Intermediary accounts that the Bank Reconciliation is performed. These intermediary accounts must be created as “Open Item Management’ and “line item display” Accounts for the purpose of the bank reconciliation exercise. However, it is not advisable to create the Main Bank Account G/L as “Open Item Management” Account.
 
e) Currency: Enter the currency of your house bank account here.

Note: The rest of the fields on House Bank Data, address and control data will be automatically updated from the House Bank data you entered from the previous step of House Bank Definition.
 
3) Setting up Bank Determination for payment Transactions
 
We now move on to the main topic of this post “Setting up Bank Determination for payment Transactions”. In this configuration step we will be linking the House Bank and the House Bank Accounts discussed above to our SAP payment methods (discussed in the last two posts). This is necessary because you cannot make payment from a bank account with a payment method that is not defined for it. The SAP automatic payment program checks the combination of House Bank, House Bank Account, currency of the house bank account and payment method for a successful payment program run.
Follow this menu path to configure Bank Determination for Payment Transactions.
IMG — Financial Accounting (New) — Accounts Receivable and Accounts Payable — Business Transactions — Outgoing Payments — Automatic Outgoing Payments — Set Up Bank Determination for Payment Transactions
 

 
Select your company code and double click on Bank Accounts.
 

 
Click on new entries.
 

 

 
Note:
i. The system validates the first three columns (House Bank, payment method and Currency) and these cannot be the same in any two entries even if the Bank Accounts are actually different. For example, if you have two USD Bank accounts with the same House Bank, you cannot assign the same payment methods to them (otherwise the system will give an error that the same entry already exists). In that case you have an option to configure the “Bank account (alternative)” to go around this limitation (see the discussion on this below).
 
ii. The G/L Account assigned in the bank sub-account column above is the outgoing bank G/L not the main bank G/L which was assigned in FI12.
 
This is the basic setting for bank account determination. You can configure other options like:
 
a) Ranking Order: here you define the rankings of permitted House Banks for payment transactions. With this setting the payment program determines which bank account to use depending on the rankings assigned to the House Bank in a particular Company Code.
 

 
Select your company code and double click on Ranking Order.
 

 
b) Bank account (alternative): As mentioned above, you can use this functionality to configure additional bank accounts for a payment method where you are faced with a situation of having multiple accounts in the same currency with the same house bank.
 

 
Select your company code and double click on Bank account (alternative).
 

 
Click on new entries.
 

 
c) Available Amounts: We define here, for each House Bank, the amount available for each payment run. For each bank account define (in two entries) the available amount in the bank account currency and in the local currency. Also define the amount available for outgoing payment and Scheduled incoming payments for each house bank account.
 

 
Select your company code and double click on Available Amounts.
Click on new entries and enter the relevant information.
 

 

d) Value Date: You define here the number of days that should elapse from the date of the payment, for the system to derive the value date. This is determined for each combination of payment method, house bank, house bank account, amount limit and currency.
 

 
Select your company code and double click on Value Date.
Click on new entries and enter the relevant information.
 

 
 
4) Bank Determination for payment Request

In addition to the settings above, if you are executing a payment program (F111) for a payment request (FIBLAPOP and FIBLFFP) created in the system, you have to perform the following configuration setting:
IMG — Financial Accounting (New) — Bank Accounting — Business Transactions — Payment Transactions — Payment Handling — Bank Clearing Account Determination — Bank Clearing Account Determination
 
With these settings the configuration of “Bank Determination for payment transactions” is completed.We will be honored to hear your opinions and suggestions.
 
 
 
 
 
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