4 Replies Latest reply: Feb 13, 2010 8:33 PM by Syed Hussain RSS

automatic payment program process

Ajay kumar
Currently Being Moderated



plz tell me the process of Automatic payment program?


how to execute the program and  wht are the steps involved while running this  Automatic payment program..?


pls give me a detailed explanation on Automatic Payment Program?





  • Re: automatic payment program process
    Syed Hussain
    Currently Being Moderated

    Dear, As found..


    Automatic payment program in SAP selects appropriate invoices to be paid based on following paramete:


    1. Documents entered upto. The selects invoices entered in SAP system with entry date upto the date specified in the filed.


    2. Nex payment run date:  The progam selects invoices in SAP system whcih will be overdue or incur lost cash discounts if paid on the date specified in this field.


    When executing the automatic payment program (F110 transaction), a proposal run must be always be carried out in SAP system first. The proposal list will sometimes include exceptions.


    Common exceptions are:


    SAP Invoice contains payment block. To pay this invoice, remove the payment block when editing the proposal list (unless the payment block is one whch cannot be edited during payment proposal) or remove payment block via FB02 for each SAP invoice.


    Payment method in vendor master/invoice is different from the one specified in the payment program parameter. To pay this invoice, allocate the payment method in the parameter of the payment run to this invoice while editing the proposal list.


    Vendor master does not contain information specified as mandatory in the payment method in teh paramter of the SAP paymement program. For example, depending on the payment method configuration for the country, certain fileds such as city or PO Box must be populated in the vendor master. In this case, delete the proposal run, make the necessary changes in the vendor master and execute the proposal run again.


    Typically, Payment program pays due invoices in full. To cater for partial payment via automatic payment program, payment request will be used (optional). Down payments to staff and vendorcan also be made via the automatic payment program if down payment request was posted.


    If foreign currency invoice is paid via automatic payment run, the relevant exchange rate type should be selected in the payment run parameter. Exchange rate gain/ loss on making the payment will be automatically posted to their relevant profit and loss account based on the reconciliation account of vendor.


    The payment method specified in the parameter of the payment program determines the bank account and the GL account used to make the payment. Also, depending on the payment method, cheques, other forms and payment files will be generated.



    • Re: automatic payment program process
      Syed Hussain
      Currently Being Moderated

      After automatic payment run, the remittance advices can be generated automatically for each vendor and printed or sent via email. For email option, Acrobat Reader (PDF) file containing remittance information is created and attached to email.




      Alternative ways to make payment:


      Manual Payment

      Cheque Lot


      Manual Payment


      Unlike in automatic payment via F110 Transaction, when making manual payment in SAP, only one vendor can be paid at a time. Also, the bank clearing account from which the payment is to be done must also be manually entered. Moreover, the specific invoice in SAP syetem to be paid must be manually selected.


      Cheque Lot Maintenance


      For facilities using cheques with pre-printed numbers to settle their payables, SAP system can be configured to keep track of their cheque numbers usage in the system to ensure fraud is prevented. This can be done by utilizing the cheque lot management functionality.


      The following can be done through cheque lot management:


      Create a cheque lot with the corresponding cheque number range as given by the bank. Multiple cheque lots can be maintained as needed.


      Whenever the payment method for cheque printing is specified, the payment program will select the first available cheque number from the correct check lot (as specified by the user) and attach it to the payment document. Therefore, every cheque number is accounted for. Cheque numbers will not be utilized more than once.


      Cheques can be voided and audit trail is available as user ID is attached to a voided cheque. Every voided cheque needs to be tied with a void reason code



      • Re: automatic payment program process
        Syed Hussain
        Currently Being Moderated

        Steps for configuring the automatic payment program:


        First, Set up the following:


        1.Co. code for Payment transaction.

        2.Define sending and paying company code.

        3.Tolerance days for payable.

        4.Minimum % for cash discount.

        5.Maximum cash discount.

        6.Special GL transactions to be paid.

        Next, Set up the following:


        1.Paying company code for payment transaction.

        2.Minimum amount for outgoing payment.

        3.No exchange rate diff.

        4.Separate payment for each ref.

        5.Bill/exch payment.

        6.Form for payment advice.

        Next, Set up the following:


        1.Payment method per country.

        2.Whether Outgoing payment.

        3.Check or bank transfer or B/E.

        4.Whether allowed for personnel payment.

        5.Required master data.

        6.Doc types.

        7.Payment medium programs.

        8.Currencies allowed.

        Next, Set up the following:


        1.Payment method per company code for payment transactions.

        2.Set up per payment method and co. code.

        3.The minimum and maximum amount.

        4.Whether payment per due day.

        5.Bank optimization by bank group or by postal code or no optimization.

        6.Whether Foreign currency allowed.

        7.Customer/Vendor bank abroad allowed.

        8.Attach the payment form check.

        9.Whether payment advice required.

        Next, Set up the following:


        1.Bank Determination for Payment Transactions.

        2.Rank the house banks as per the following.

        3.Payment method, currency and give them ranking nos.

        4.Set up house bank sub account (GL code).

        5.Available amounts for each bank.

        6.House bank, account id, currency, available amount.

        7.Value date specification.




        Syed Hussain.