Hi,
F110 - is to apply payment. It is payment run. Here you create a payment run and applies the payment
AUTOMATIC PAYMENT PROGRAM
Create GL Accounts : FS00 Bank Accounts under Cash & Bank Accounts Group
Tick (.) Cash Flow in Create Bank/int form / Create Bank Accounts of SB/CA/OCC
Accounts individually for each Bank (Viz. SBI SB A/c/SBI CA A/c; HDFC SB A/c/
HDFC CA A/c etc)
1. Create House Bank : SPRO-IMG > Financial Accounting > Bank Accounting >
Bank Accounts > Define House Banks (T.Code – FI12)
Select New Entries Enter New House Bank ID/Bank Country/New Bank Key
(create)
Bank Data Bank Country/Bank Key/Bank Name (Save)
Select House Bank you have created and click Bank Accounts menu
Select New Entries Enter CoCd/House Bank/Account ID(new)/
Description : SB/CA/CC/OCC of the Bank
Enter House Bank /Account ID in each GL Accounts created accordingly
In FS00 (Change)
2. Create Cheque Lots : SAP Easy Access > Accounting > Financial Accounting >
Accounts Payable > Periodic Processing > Payments (F-110)
Go to Menu Bar > Select Environment > Cheque Information > No. ranges
Enter Paying Co.Cd. : House Bank Id / Account ID / Lot No.
Cheque No. From – to
In Control data Tick (.) Non-sequential (SAVE)
FCHI - Creation of Check lot
FCHN – Check Register
FCH3 - Cancellation of Check issued
FCH5 - Manual Updation of Vendor accounts payment cheques
FCH8 - Reversal of issued cheque with Document reversal
FCH9 - Reversal of check without reversal of document
FCHV - Define Reason code of cheques
3. Automatic Payment Program : Maintain Parameters FBZP
Select each parameters and complete the details
Alternative method :
a) Set up payment methods per country for payment transactions
SPRO > Financial accounting > AR & AP > Business Transactions >
Outgoing Payments > Automatic Outgoing payments > Payment
Method/Bank selection for payment program > set up payment
Method per country for payment transaction > New Entries
Enter Country/ Payment Method (new Q/C/R) /Description – Cheques
Tick (.) outgoing payments
Tick (.) Check
Enter document type for payments : KZ
Enter Clearing document type : KZ
Payment Medium : Tick (.) use classic payment medium
Payment medium program : RFFOUS_C
Name of Print Data Base : LIST1S (SAVE)
b) Set up payment methods per co. cd for payment transactions
 New Entries
Enter paying co.oode > Payment method (Q/C/R) >
Min. Amount : 100 > Max Amount : 999999999999
Tick (.) Single payment for marked item
Tick (.) Payment per due date
Bank Selection control – Tick (.) No optimization
Click FORMs >
Form for payment F110_PRENUM_CHEK
Drawer of the form : Name of the company (SAVE)
c) Set all co.cd. for payment transaction > New entries
Enter Co. Cd. > Sending Co.Cd > Paying Co.Cd (SAVE)
d) Set up paying co.code for payment transaction > New Entries
Enter Paying Co.Code
Min. Amount for incoming payment 100
Max. Amount for outgoing payment 100
EDI accompanying sheet form
Text ID : ST
Letter Header F_0001_HEADER
Footer Text F_0001_FOOTER
Sender F_0001_SENDER (SAVE)
e) Set up Bank determination for payment transaction :
Select position : Enter Co. Code
Select Co.Code : Select Ranking Orders
Select New Entries :
Enter Payment Method (Q/C/R)/Currency/Rank Order 1/2/ House Bank
(SAVE)
Select first Ranking order > Select Bank accounts > New Entries >
Enter House Bank/Payment Method/Currency/Account ID/Bank Sub A/c
i.e. your Bank GL Account (SAVE)
Select available amounts : New Entries
Enter House Bank/Account ID/Days (999)/Currency/Amt.available for
Outgoing payment – fill amounts for each House Bank accounts (SAVE)
f) Assign payment method to Vendor : SAP Easy Access > Accounting >
Financial accounting > A/P Vendor > Master Records > Change (FA02)
Enter Vendor Account/Co.Code/ Tick (.) Payment Transaction/
Payment Method (C/Q/R) (SAVE)
4. Running Payment Program :
SAP Easy Access > Accounting > Financial Accounting > Vendors >
Periodic Processing > Payments (F110)
Enter Run Date : (some previous date)
Identification : ( your own ID No. as AP01/AP02 etc)
Select Parameters > Parameters have not been entered yet
Enter Co.Code / Payment Method /Next payment date
Enter Vendor Account Nos from – to (SAVE)
Select Additional Log : Tick (.) Due date check
Tick (.) Payment method selection in all cases
Account required : Vendor A/c Nos. from – to
(SAVE)
Select status : Parameters have been entered
Select schedule proposal : Tick (.) Start immediately (save)
Status : Payment proposal has been created
Select Edit proposal – Double click -Tick (.) All accounting clerks (Save)
It will show overdue for all the vendors you want to pay as ***
Double click *** it will show the amount for each vendor overdue
Double the amount a new screen will open : Change line item
Select reallocate button
Change payment screen will come
Enter payment control/payment method/house bank id (SAVE)
Now follow the same procedure for other payments and other vendors also
And save. And come to autopayment main screen
Status payment run run has been carried out.
Select schedule payment run : select start immediately – save
Status : payment run has generated/completed
Select print out/data medium Program RFFOUS_C
Select maintain variant – Tick (.) for all screens – continue
In Print Control screen : Tick (.) Print Checks/Print payment advice notes/
Print payment summary/ Printer LP01 Print immediately
Output control (.) Do not void any check
Select attributes : Enter short description
Save – come back one time – save again
Print out : Job Name : F110_20061129_abc_aa
Menu Bar : System > Services > Jobs > Jobs overview > execute
Path for report : System > Services > Output Control
Eg2:
First Step: We first create House Banks. These are the banks for your clients. Your client uses these for its banking transactions. One House Bank can have multiple bank accounts assigned to it.
During the implementation one can try to rationalize both, the Banks and the Accounts.
A House Bank has a Unique Bank Key. Bank Keys differ by each country's norms. The US Bank Key is called ABA (American Banking Association) number. Normally each House Bank can have its own Company Code. In some cases, where the Banks use a different ABA key for paper Transactions and a different one for Electronic Transactions, you Create Two House Banks instead of one for One Physical Bank. Also, Two Bank Accounts will be created for a Single GL Account.
T-Code: FI12
Menu Path: Financial Accounting > General Ledger Accounting > Bank-Related Accounting > Bank Accounts > Define House Banks
Config Steps:
A House Bank is tied to a Company Code and each Bank Account is tied to a House Bank. So first we Select the Company Code for which the House Bank is to be created.
The Create Bank icon is clicked and it brings up a pop up for House Bank Identifier and House Bank Country. House Bank ID is a number decided by you. You can specify a number based on your numbering conventions.
The Next screen requires entry of the Bank Key - the ABA number is the House Bank country selected was US. On this screen you also enter the House Bank Address data as well Control Data - comprising of SWIFT COde, Bank Group and Bank Number.
Once the House Bank data has been entered and filled up, you click on Bank Accounts and you are taken to the screen to configure the Bank Accounts. On the Next screen click on the "Create Acct" icon.
A pop up comes up where you enter the House Bank Identifier in your system as well as the Bank Account identifier in your system along with a text description. Once this is done, we get to the main screen where we enter the following data:
Bank Account: The Bank Account given BY the Bank.
Altern. Acct No.: This field is used when two accounts at the same bank use the same account number. This situation may arise when the bank manages the accounts in two different currencies. This field has a different number than the Bank Account field.
Currency: This is the currency in which the account is managed.
Control Key: For US Banks, this is used to identify whether the account is a Checking or Savings account. The key is 01 for Checking and 02 for Savings. The Default value is checking account if nothing is specified.
GL Account: Each Bank Account is assigned to a GL Account Number. The Bank Account updates the GL Account entered here.
Discount Account: If the company uses the Bill of Exchange facility then we enter the Cash Discount Account for Credit Memo Postings that this Bank Account should update.
Bank Account Structure
It is important to have the right structure for Bank Accounts, GL Accounts and the Clearing Accounts.
It is important to know how much of:
Confirmed Cash,
Floating Cash out, and
Floating Cash in
is available for the company on a particular day.
There should be Only One Confirmed Cash GL Account with many Bank Clearing Accounts. So, the Checks Outgoing Clearing, Wire Outgoing, ACH Out, and Deposits clearing need to be set up for each Bank Account. It is also important to leave room for additional clearing accounts that may be needed in future. For this, we may have a range of 10 GL Accounts for each Bank Account. The numbering, for example, can have the GL Account ending with 0 for each Confirmed Cash Balance (eg: 110000); each deposit clearing account will end up with a 1 (110001); each outgoing check clearing account will end with a 2. each outgoing ACH account will end with a 3 and each outgoing wire account may end up with a 4.
Check Lots and Void Reason Codes
The final step in configuring of the AP Bank Account is to assign it to a check lot.
Check Lots
If the company has a MICR printer then a blank check lot can be used for Payables. The check lot determines the check number that is used on payments.
The first step is to bring up the "Check Lots" screen.
T-code: FCHI
Menu Path: Financial Accounting > Accounts Receivable and Accounts Payable > Business transactions > Automatic Outgoing Payments > Payment media > Check Management > Define Number Ranges for Checks
On the main screen you need to fill up Company Code, House Bank number, and the Account ID for which the checks are being created (?)
After saving the information click on "Change Status" icon. This takes you to "Maintain Check Lots" screen. Most of the information will come filled up. You can enter the From and To check Numbers.
To create a new check lot and assign it to the account, you can click on the "Create" icon. In the pop up enter the Lot number identifier and he range of the check numbers and also the next lot number if needed.
Void Reason Codes
In SAP, it is not possible to void a check without a valid reason code. We can have any number of Void Reason codes. There should be at least one Void reason Code configured in the system.
T-code: FCHV
Menu Path: Financial Accounting > Accounts Receivable and Accounts Payable > Business Transactions > Automatic Outgoing Payments > Payment media > Check Management > Define Void Reason Codes.
Three Void reason Codes come pre-configured - 1, 2, and 3. They deal with the problems encountered with the printers. There are indicators to be assigned which define whether the Reason Code is due to Manual or Print program. Any codes created by the users are only assigned Manual.
Payment Program Configuration
This step determines how to process the payment transactions in the system.
The Payment Program is a series of steps within one Program.
The configuration occurs in table T042 and other variations of table T042 that end in a letter.
T-Code: FBZP
Menu Path: Financial Accounting > Accounts Receivable and Accounts Payable > Business Transactions > Outgoing Payments > Automatic Outgoing Payments > Payment Method/Bank Selection > Configure Payment Program
Reward points if found helpful...
Cheers,
Chandra Sekhar.
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