SAP Automatic Payment Program- Configuring the Payment methods in Company Code

 
Just as you cannot use a payment method in a country without the “payment method in country” settings, you cannot also use a payment method in your company code without the “payment methods in company code” settings in place.
In this post we will discuss the “payment methods in company code” settings as a continuation to the series on SAP payment methods configuration.
 
Pre-requisites:
 
Before you start configuring payment methods for your company code, the company code must be configured to be able to do payment transactions. Therefore we will first briefly discuss company code settings in SAP Automatic Payment Program through the following steps:
 
1) Set Up All Company Codes for Payment Transactions

 
In this configuration steps, you make settings for all company codes to be involved in payment transactions.
To do so, follow the menu path below:
IMG — Financial Accounting (New) — Accounts Receivable and Accounts Payable — Business Transactions — Outgoing Payments — Automatic Outgoing Payments — Payment Method/Bank Selection for Payment Program — Set Up All Company Codes for Payment Transactions

 

 
Enter your company code and other details as explained below:
 
a) Paying Company Code
If your company code is going to be a paying company code (meaning it will be involved in payment transactions), enter it in the “paying company code” field.
 
b) Tolerance days for payable
If applicable, enter here the number of days by which the cash discount periods and period for the due date may be exceeded. In determining the due date the system add the number you entered here.
 
c) Special GL Transactions to be paid
Enter here the Vendors (and Customers) special GL transactions (Down payment requests, down payments etc.) to be paid under this company code.
 
For more details on this refer to my earlier post http://sapgurus.com/cross-company-code-payment-explained/
 
2) Set Up Paying Company Codes for Payment Transactions

Here you make detail settings for the company code you defined as a paying company code in 1) above.
Follow the menu path below to Set up Paying Company Codes for Payment Transactions:
IMG — Financial Accounting (New) — Accounts Receivable and Accounts Payable — Business Transactions — Outgoing Payments — Automatic Outgoing Payments — Payment Method/Bank Selection for Payment Program — Set Up Paying Company Codes for Payment Transactions
 

 
a) Minimum Amount for Incoming Payment
Enter the minimum incoming payment amount here. This is the amount above which an incoming payment can be generated by the system.
 
b) Minimum Amount for Outgoing Payment
If you enter the minimum outgoing payment amount then the payment program runs and the outgoing payment is created if the amount of the open item in equal or more than the amount specified.
 
c) No Exchange Rate Differences
Set this indicator if you do not want the system to post any exchange rate differences from the payment program run. If the indicator is not set, the system automatically calculates the exchange difference between the open item date and the date of the payment and posts this in your books.
 
d) No Exchange Rate Differences (Partial Payments)
Flag this indicator if you do not want the system to post any exchange rate differences from the payment program run for partial payments (F-59).
 
e) Bill of exchange Payments
Set this indicator if you wish to use bills of exchange payment procedure in the paying company code.
 
f) Specification for SEPA Payments
SEPA is the Single Euro Payments Area. If you are in a SEPA Country, you maintain the specification for SEPA Payments by entering the Creditor Identification number here.
 
3) Payment Methods in Company Codes

We can now discuss the payment methods in company code settings.
The “Payment Methods in Company Codes” configuration can be done through the following menu path:
IMG — Financial Accounting (New) — Accounts Receivable and Accounts Payable — Business Transactions — Outgoing Payments — Automatic Outgoing Payments — Payment Method/Bank Selection for Payment Program – Set Up Payment Methods per Company Code for Payment Transactions
Or use the famous FBZP transaction code
 

 
What we will basically be doing under this configuration activity, is specify which payment methods can be used per company code and also to set the conditions under which a payment method should be used.
In doing so we will go through the following tabs:
 
4) Amount Limits Tab
Under this tab you specify the amount limits for the payment method under your company code. Meaning that for the payment program to select open items with this payment method and under the affected company code, the open item amount should be within the range define here.
 
a) Minimum Amount
If a minimum amount is defined for a payment method in a particular company code, it means the payment program will only select open items if the amount does not fall below the amount define here. Meaning that amount of the open item should be equal or more than the one defined here.
Note: An exception to this is where a payment method is assigned at the invoice level, in this case the system overrides the settings done here and the minimum amount rule will not apply to such invoices.
 
b) Maximum Amount
If a maximum amount is defined for a payment method in a particular company code, it means the payment program will only select open items if the amount does not exceed the amount define here. Meaning that the amount of the open item should be less than or equal the one defined here.
Just like in the a) above, an exception to this is where a payment method is assigned at the invoice level, in this case the system overrides the settings done here and the miaximum amount rule will not apply to such invoices.
 
5) “Grouping of Items” Tab
Under this tab you specify how for a particular company code, the payment program should group the open items to pay using the defined payment method.
 
a) Single payment for marked items
If this indicator is checked, it means the payment program pays open items individually, when the payment method is explicitly specified in the invoice. However, if the payment method is not specified explicitly in the invoice, but is instead selected by the payment program, several items can be paid together.
 
b) Payment per due day
If this indicator is checked, it means the payment program groups open items according to due date. Meaning that open items sharing the same due dates are paid together in single payment run.
 
6) Foreign Payments/ Foreign Currency Payment Tab
Under this Tab, you define whether the payment method being configured will be allowed in foreign payment transactions.
 
a) Foreign Business Partners Allowed
If this indicator is flagged, it means this payment method could be used to make payments to Vendors overseas (foreign vendors). Foreign Vendors are by definition vendors whose assigned Country in the master data is different from the country assigned to your company code.
 
b) Foreign Currency Allowed
If this indicator is selected, it means this payment method could be used to make payments in foreign currencies. If for any reason you want to allow only certain currencies for your payments, you maintain this settings in “payment methods in country” configuration (refer to para 6 of my post on payment methods in country). Payment can be made in any currency if no such restrictions exists. Foreign currency by definition is any currency different from your company code currency.
 
c) Customer/Vendor Bank Abroad Allowed?
If the indicator “Customer/Vendor Bank Abroad Allowed?” is selected, it means this payment method can select foreign bank accounts from the Vendor master data for payments.
 
7) “Bank Selection Control” Tab
This tab gives you the option to optimize your payment process (using your chosen payment method) by grouping your payments according to predefined criteria (by Bank and Postal code).
a) No Optimization
When this indicator is flagged, it means that the payment program, when using this payment method, will not carry our any optimization during selection of your house bank and bank of business partner (vendor/customer).
 
b) Optimize by Bank Group
When this indicator is flagged, it means you can optimize your payment process by grouping your payments, (using “Bank” as the grouping criteria). It means you wish the system to optimize the payment process by selecting the optimal pair of your Bank Group and the customer’s/vendor’s bank Group. In this way the payment program checks whether your bank group belongs to the same bank group as your payee’s (vendor’s) bank group.
 
c) Optimize by Postal code
When this indicator is checked it means that the payment program should pay the item from your house bank which is geographically nearest to the city of residence of the customer/vendor. This you can achieve by using the postal code as your grouping criteria.
 
8) Forms
Form specifies the format of the output of the payment medium generated by the payment program using a particular payment method.
 
a) Creating a payment form
The creation of forms are usually done by the technical consultants.
Follow the menu path below to create forms:
IMG — Financial Accounting Global Settings (New) — Accounts Receivable and Accounts Payable — Business Transactions — Outgoing Payments — Automatic Outgoing Payments — Payment Media — Define Payment Forms

 
b) Assign payment forms for “payment method in company code”

Make the following settings to assign payment forms for “payment method in company code”

IMG — Financial Accounting Global Settings (New) — Accounts Receivable and Accounts Payable — Business Transactions — Outgoing Payments — Automatic Outgoing Payments — Payment Media — Make Settings for Classic Payment Medium Programs — Assign Payment Forms for Payment Method in Company Code
 

 
Assign the form to your company code and save.
 

 
To assign form to your payment method, double click on Allocate forms to payment method in company code.


 
c) Drawer on the Form Tab
Specify the name and address of your company as the issuer printed on the form, or output of the payment medium. The details are different for the individual forms or formats.
 
9) “Sorting of the” Tab
In this tab you define the sort variants for payment medium forms. The standard system sorting takes place according to currency and the payee’s bank details, if you do not make your own settings for sorting.
 
a) Correspondence Sorting
If you want to make use of this functionality, you define a sort variant which you attach here. This helps to determine how the correspondence in payment transactions (payment advice notes, checks etc.) is sorted by using the defined sort variant. For example you can define that your payment are sorted by name or postal code.
 

 
Note: to configure the Sort Variant follow the following menu path:
IMG — Financial Accounting (New) — Accounts Receivable and Accounts Payable — Business Transactions — Outgoing Payments — Automatic Outgoing Payments — Payment Media — Sort Variants — Payment Media: Define Sort Variants
b) Line Items Sorting
The line item sort variant determines how line items on payment media and payment advice notes are sorted. For example you can specify that the line items on you payment advice are sorted by reference number, date and so on.
 

 
Use the following menu path to configure Sort Variants for Line Items:
IMG — Financial Accounting (New) — Accounts Receivable and Accounts Payable — Business Transactions — Outgoing Payments — Automatic Outgoing Payments — Payment Media — Sort Variants — Payment Media: Define Sort Variants for Line Items
 
10) “Payment Advice Note Control” Tab
Use these fields (“restricted to, none and as many as required” options) to specify how many lines are to be used for the note payee on the payment form.
 
With these settings the configuration of “payment methods in company code” is completed.
 
 
 
 
 
 
 
 

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3 thoughts on “SAP Automatic Payment Program- Configuring the Payment methods in Company Code

  1. Hi, good day.
    Thank you for this, your blog is really good i am learning a lot from it. I have been familiar on APP config for quite sometime now, i just want to ask about ‘2.f.Specification for SEPA Payments’ — is this field new? because i remember way back 2014 i once supported a company that uses SEPA payments and i dont think i saw that field on their Paying Company Codes. I also check one of our local company’s configuration (though they dont use SEPA payments) and i did not see the ‘Specification for SEPA Payments’ field.

    Best Regards,
    Nica

  2. Hi Nica,
    Many thanks for your encouragement and for your time in going through the blog post.
    As for your question, may be SEPA is not activated for the company in question. You need to activate SEPA using transaction FI_APAR_SEPA_CUST .

    Best Regards,

    Ebrima Fatty
    Founder SapGurus

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