Refund Process in FICA

[Former Member]

Hi Experts,

Can you please Help/Advice/Suggestions on Refund file generation.

I've Successfully Run Payment FPY1.

I am not clear how to generate Payment Advice from there,

Do i need to configure DME if yes, then will it be configured from FI or FICA.?

what is the next step?

Can you please provide me your valuable inputs and suggestions?

Kind Regards

Rehan Mohammed

[AmlanBanerjee]

Hi Rehan,

You have to configure an application form for generating the payment advice note for the refund process through FPY1 in the following configuration.

SPRO--->Financial Accounting--->Contract Accounts Receivable and Payable---->Business Transactions---->Payments--->Incoming/Outgoing Payment Creation---->Define Specifications for Paying Company Code

Select the company code and click on the payment methods in the company code.

Then select the Refund payment method and click on display

Now under the Specification for payment advice note, you have to assign the application form.

To start with,you can assign the SAP Standard application form for payment advice notes (Correspondence type-0006),FI_CA_PAYMENT_SAMPLE, in this config to see the results.

Hope it helps...

Thanks,

Amlan

[Former Member]

Hi Amlan,

Thanks for the reply.

I've done that config but i need to know, how do i send Payment Information to Financial Institutions?

Do i need to go via FI or directly from FICA?

In my correct project, a DME Custom program being used by FI module, which meets the Financial Institution format. they are using this format for vendor payment.

they create customer as vendor for Refund process in Current system.

Since IS-U is the new solution, I just need to know, what would be the Standard Solution for Refund to a Business partner.

after payment run (FPY1), do i need to generate payment Advice? or do i need to use DME to generate payment advice? also how do i communicate with Banks.

Could you please help me with Standard Solution.

your help will be much appreciated.

Regards

Rehan

[AmlanBanerjee]

Hi Rehan,

There are two ways through which you can commnicate the customer refunds to the Financial Instiutions-

(A) Straight through IS-U FICA to Financial Institutions-

     In this, you have to create a payment medium format and assign that to the refund payment method in the respective compnay code.

There are already some SAP standard payment medium formats available.

You can have a look in trnsaction Code FQP3.

The payment medium format contains a series of FM which creates the file that needs to go the bank\financial institution.

The payment meduim gets triggerred from the standard Program SAPFKPY3.

(B) ISU FICA to FI to Financial Institutions-

In this, you also have to create a payment medium format and assign that to the refund payment method in the respective compnay code.

However, instead of generating a flat file, you can create IDOCS carrying the refund information and then they get posted to FI against a one time vendor from where, you can carry out a F110 payment run to generate the file and send the information to Banks\Financial Institution.

If your only requirment is to communicate to Banks, then you have to develop a payment medium for the same and commnuicate that to bank through a FTP channel.

Hope it helps.

Thanks,

Amlan

[Former Member]

Hi Amlan,

Thank you for clear explanation.

one more thing i wanted to know, as FM Creates the file for bank/Financial institutions.

where should i design the file layout. because every bank got there own file structure,

also, in FICA is it a Workbench or a Program?

if it is a Program then i dont see any where to assign DME kind of Program like in FI (F110)

Thanks in Advance

Regards

Rehan

[matthew_stout · Accepted solution]

Great post by Amlan.   I think the preferred process would be to generate the refunds directly out of FICA via FPY1. Amlan's option A referenced above.  The ACH file format is pretty much standard SAP function modules.  Program SAPFKPY3 can be triggered from the payment run.  Just follow the menu path from FPY1 and look for "payment medium".  You just need to allocate a variant to program SAPFKPY3.  I hope that helps a little and provides a little more insight on Amlan's words.

[Former Member]

Thanks Matthew,

Banks got their own file layout, how should we design that layout?

should we use FM which we assigned in Payment Medium?

or anyother way to design layout?

thanks in Advance

Regards

Rehan

[AmlanBanerjee]

Hi Rehan,

You can copy the standard FM and replace the same assigned against the payment medium format and add your own logic to cater the bank file format.

Hope it helps..

Thanks,

Amlan