APP AUTOMATIC PAYMENT PROGRAM

Maintain payment program:

To maintain payment program, use following --;Accounts receivable and account

payable--;Financial Accounting--;path: SPRO Payment--; Automatic outgoing
payment--;Outgoing payment--;Business transaction method/Bank selection for payment
program.
Alternatively, SAP provides one centralized T. Code FBZP for this configuration. There are
six steps in this configuration:
Configuration for company code.
Configuration for paying company code.
Configuration for payment method in country.
Configuration for payment method in company code.
Configuration for bank determination.
Configuration for House bank.

4.1 Customizing Company code:

The first configuration step is to set up company code. In addition to making the company
code available for payment program, this setting specifies lots of general control data for the
company.
4.1.1 To carry out this step, select All company code.
4.1.2 Click on New entries, if your company code does not exist in the given list or make a
copy of any existing entry.

In next screen Make entry in following fields:

Company code: The company code for which you are creating this configuration.
Sending company code: The company code for which payment will be made. Generally this
sending company code and above company codes are same, so you can leave blank.

 Paying company code: If organization has centralized outside payment than the company
code from which payment will be made enter here.
Separate Payments for each Business Area: If this indicator is set, line items from different
business areas are paid separately.
Payment Method Supplements: This means payments are to be separated in the document
according to a preset document types. A payment method supplement can be predefined in
the customers and vendors of the company code. This supplement is used to group
payments. Payments are separated according to payment method supplements and can be
printed separately by these supplements or sorted by them for printing. The payment method
supplement is defaulted during document entry and can be overwritten there.
Tolerance Days for Payables: Specifies the number of days by which the cash discount
periods and period for the due date for net payment will be exceeded i.e. if you enter 5 days,
invoice would not be paid until due date plus 5 days.
Minimum Percentage Rate for Payments with Cash Discount: Specifies the lower limit for
payments with cash discount deduction. 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 for net payment.
Max cash Discount: Maximum cash discount will be always to be deducted when
automatically paying vendor invoices even the payment is made after the predefined period.
Special G/L Transactions to be paid (Vendor/Customer): All open vendor/ customer items
that have been entered with one of the specified special G/L indicators are included in the
payment. Special G/L indicators are used for down payments, security deposit payments etc.
Special G/L Transactions for Exception List (Vendor/Customer): All open vendor/customer
items that have been entered with one of the special G/L indicators are output in the
exception list.

Example: In our example, we are entering, company code P202, paying company code also
P202, Tolerance days for payable 2 days, Minimum Percentage Rate for Payments with
Cash Discount 1% and Special G/L Transactions to be paid (Vendor/Customer) as A which
is for down payment request.
4.2 Configuration of Paying Company Code:
As mentioned in section 3.1, paying company code and sending company can be different
so the second step is to make configuration of paying company code.
4.2.1 To carry this section, select Paying company code in basic configuration screen on T.
Code FBZP.
On this screen

4.2.3 Click on New entries, if your company code does not exist in the given list or make a
copy of any existing entry.
4.2.4 Newscreen will appear:
Make entry in following fields:
Minimum amount for Incoming payment: Amount above which an incoming payment is
generated by the system. If the amount in question does not equal or exceed the amount
specified in this field, the items that comprise the amount are printed in an exception list.
Minimum amount for Outgoing payment: An outgoing payment is created if the amount is
equal to or exceeds the amount specified. By specifying a minimum amount, you can
prevent the system from generating payments for amounts that do not justify the expense
incurred to make the payment. If a payment amount does not equal or exceed the amount
specified in this field, the line items that make up this amount are printed in an exception list.
Do not post any Exchange Rate Differences: Ensures that no exchange rate differences
are posted by the payment program. If the indicator is set, no exchange rate difference
posting is generated. The amount in the bank posting in local currency does not result from
translating the foreign currency amount at the current rate but from the total of the local
currency amounts from the settled items. If the indicator is not set, 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 payment program uses the
translation rate in the currency table in the system for this purpose.
Separate payment for each payment reference: This indicator means that only invoices and
credit memos which have the same payment reference can be settled with one payment.
Otherwise all payment to same vendor with different reference will be paid separately.
Processing of bill of exchange payments: Causes the payment transactions with bills of
exchange fields to be displayed. All the below mentioned
Example: in our example, our paying company and sending company are the same, so
paying company is also P202. Minimum incoming amount is Rs. 50 and min. outgoing
payment is INR 100.
4.3 Configuration of Payment method in country:
The third step in configuring the payment program is to set up country payment method. This
step will define which payment method can be used by a company code in a specific
country. This also established general control for that payment method in the country.
4.3.1 To carry this section, select Payment method in country in basic configuration screen
on T. Code FBZP.
4.3.2 You will be presented with the following screen:

4.3.3 SAP provides mostly used payment method or you can use new entry or copy the
existing entry to create new payment terms.
4.3.4 When you will select one payment method for the specific country than following
screen will appear:

Make entry in following fields:

Description: Country-specific name for the payment method represented by the payment
key.
Payment method for: specify whether this payment method is for outgoing payment or
incoming payment method.
Payment method classification: this indicator will decide payment will be made in which
mode.
Required master record specification: Which are the fields which are mandatory to be
entered in master data of the vendor? This is control issue and will be decided on basis of
management decision.
Document type for payment: Specifies the document type which the payment program
uses to post the payment document. All the setting for document posting for payment will be
according to this document type.
Clearing Document type: Specifies the document type which the payment program uses to
post the clearing document which is created with cross-company code payments. The
clearing document contains the clearing entries. All the setting for document posting for
clearing will be according to this document type.
Special G/L indicator for bill of exc.: As long as an appropriate posting is defined in the
payment method, the system posts the bill of exchange or bill of exchange payment request
with this special G/L indicator.
Payment order: This indicator indicates that the payment program does not post a payment
document and the paid items are not cleared. Instead, the system generates and saves a
payment order. The information contained in this order can be used to clear the items at a
later date.
Payment medium: one can use workbench for payment medium however SAP provides
standard payment medium program. This code is starting with RFFO than next two digits
for country like US than followed by _, one character of payment method for example
RFFOUS_C.
4.3.5 Currency Allowed: Now add the currency allowed for this payment method. To add the
currency for payment method, select Currency allowed (Right hand side folder). Here use
new entry and give the currency name which you want to use for automatic payment run.

Example: In our example, we are making configuration for payment term C (Outgoing
payment) for country India, with document type of payment KZ and clearing document
type ZV. Currency allowed is INR and USD.
4.4 Payment method in company code:
The fourth step to configure payment program is to make confutation of payment method for
the company code. This will specify further control for payment:
4.4.1 To carry this section, select Payment method in company code in basic configuration
screen on T. Code FBZP.
4.4.2 You will be presented with the following screen:

4.4.3 If your company code does not exist in the given list click on new entries or make a
copy of any existing entry and if you company code is exist than select that.
4.4.4 You will be presented with the following screen:

Make entry in following fields:

Amount limit: specify minimum amount and maximum amount for this payment term for
specified company code.
Grouping of items: this indicator will decide grouping of open item to be paid which making
entry.
Foreign payment: This indicator will decide whether foreign business partner allowed,
foreign currency allowed for payment and whether abroad bank is allowed.
Bank selection control: whether you want bank selection for this payment method by using
bank group or postal code.
Example: for our example, we have defined minimum amount INR 100 and maximum INR
2,500,000.
4.5 Bank Determination:
The fifth step is to configuring the payment program is determining the bank selection
procedure. This step is actually a series of smaller steps which conclude which bank will be
selected while making payment.
4.5.1 To carry this section, select Bank determination in basic configuration screen on T.
Code FBZP.

4.5.3 Select your company code and go to ranking order, here for your payment method give
the ranking for house banks. This will give instruction to select housing bank in given order
for payment.

Example: In our example, we have given for payment method C, house bank HBNK as 1,
HB02 as 2 and 1000 as 3.
4.5.4 Now select Bank accounts, here you have to give your house bank, payment method
at which payment will be made currency in which payment will be made, bank account ID
and G/L where you want to make posting for all the payment.

Example: In our example, we have given our house bank HBNK, account id 1000, currency
INR and G/L account 113105
4.5.5 Now select Available amount, for a particular house bank with its bank ID, how much
amount is available in all the required currency.

Example: In our example, we have taken INR 999, 999,999.00 for outgoing and same for
incoming payment for valid 999 days.
4.5.6 Now select Value date, this field will define average no. of days it takes for a payment
to clear the bank payment. Here you define for particular house bank with account ID and for
a specific payment method how much maximum amount can be cleared in given days.

Example: In our example, we have entered INR 99,999,999.00 can be cleared in one day for
payment term C for house bank HBNK and account id 1000.
4.5.7 In last step select expenses/Charges to define how much charge will be posted if
amount is less than a particular amount.
Example: In our example lets ignore this step i.e. we are not charging any thing for small
amount.
4.6 Configuration for House bank:
Hope this is usefull,

Steps to Run Payment Program TCode - F110

Step 1. Enter the Run date & Parameter Id.

a) Enter Run Data. (It should be >= the last Run date).
b) Enter Parameter ID (This is Just an Identification, in combination with the
above Run date).

Step 2. Enter the Parameters.

a) Click on Parameters.
b) Enter the Posting Date
c) Enter the Date for "Documents entered upto". This is date upto which all
entries done will be considered for payment".
d) "Customers item due by", can be left blank, if so then it will consider all
items due for the payment run.
e) Enter the company code
f) Enter the Payment Method / Methods
g) Enter the next payment date. (Run date + 1).
h) Enter the Vendor here whom you want to pay. Either give one Vendor or
series of Vendors.
Go to the Printout/Data Medium Tab and enter the Print Variant there against
the Payment Program i.e against the 3rd program .

How to maintain the Print Medium. Just give any name against the 3rd

Program, in the Variant field and press the tab maintain variant.
I) Enter the Identification Feature.(Type the variant name here).
ii) Enter the Paying Company Code.
iii) Enter the Payment Method
iv) Enter House Bank
v) Enter Account ID
vi) Enter the Check Lot Number. If its not there then you can create the same
under Tcode - FCHI.
vii) Check the tab Print checks & Print Payment advice and then mention your
printer name against each of the tab. Also check the tab "Print
immediately" against the selected printers.
viii) Select on attributes. Enter the variant name in meaning, and save the
variant.
Go Back to the Parameters screen and Save the Parametes
After Saving the Parameters go back.
You will get the screen which says " Parameters have been entered"

Step 3 - Proposal.
i) Click on Proposal.
ii) Check on Start immediately and execute.
iii) You will get the message "Proposal is ready to be started". Click on the refresh button till
you get the message " Payment Proposal has been created".
Click on display proposal and see if there is green sign. This means the proposal has run
without any errors. If there is a red sign then it means there are errors. Go to Edit Proposal
and see the error and correct the errors.

Step 4 - Payment Run

i) Click on Payment Run Tab

ii) Check on Start immediately and execute.
iii) You will get the message "Payment run is ready to be started". Click on
the refresh button till you get the message " Payment run has been
carried out and Posting Order 1 generated & 1 created".

Step 5 - For Check & Payment Advice Printing:

i) Click on PrintOut
ii) Check on Start immediately and give the job name and execute.

Step 6 - From the Main Menu select "System - Own Jobs and see the status of the above
job.
i) Initial status will be against your job - in the 2nd column the Spool sign will
not be there & in the 4th column ie. Status will be "Active".
ii) After 3 min refresh the screen - in the 2nd column you will see the spool
sign and in the 4th Column against your job the status will be "Finished".

Step 7 - Go to the spool request by entering T-Code :SP01

i) See the spool request of the day.
ii) You will find your spool request which be the latest one.
iii) Click on the icon in the 2nd column, you will be able to see the Payment
Advice & the check. You can now take a print out of the same.