Sap. ap dilip sadh

Think Tree Technologies, Inc.

●Outgoing Payment Processing is the final step in the Procurement Cycle. The system employs an automated Payment Program which provides full functionality for processing Vendor payments.

●Chapter Objectives

– Describe the input data needed to configure the Payment Program.

– Discuss cash discount strategies.

– Execute the Payment Program.

Outgoing Payment Processing


MasterRecord

Open Items

Payment Data

Configuration OnlineParameters

Payment Proposal Run

Payment Run

Print Program

Process

ProposalProposal Data

Check PaymentSummary

PaymentAdviceBank Transfer

Payment Media

Payment Program Overview


MasterRecordMasterRecord Open ItemsOpen ItemsConfiguration

OnlineParameters

• Address

• Account Control

• Bank Details

• Account Mgmt.

• Paymt. Transaction

• Automatic Paymt.

• Transactions

• Payment Program

• Select Open Items

• Select Bank(s)

• Payment Method

• Minimum Amounts

• Available Amounts

• Block Reason

• Cash Discount fields

• Payment Method

• Payment Block

• Specific Bank

• Payment Date

• Select Accounts

• Select CompanyCodes

• Next Payment Date

Payment Program Input Data


Address Bank Account(s)Alternative Payee

Master Record

Payment TermsPayment MethodsPayment BlockClear with CustomerOur bank

Payment TermPayment BlockPayment Method

Invoice

Master RecordComplete?

Open Itemsto Pay?

+

Payment

Input Data


Company Codes All Company CodesPaying Company Codes

Payment Methods CountryCompany Code

BanksRanking Order

AmountsAccounts

Payment Program - Control Levels


Company Code Parameters All Company Codes

Cash Discount Strategies


Cash Discountwill only be taken if the

applicable cash discountexceeds the percentage.

Cash Discount Strategies

Maximum Cash Discount will always be taken.

Due Dates are notconsidered.


Company Code Parameters Paying Company Codes


Payment Method in Country


•Check

•Bill of Exchange

•Bank of Transfer(domestic + foreign)

•Postal Bank Transfer

•Check / Bill of Exchange

•Group Clearing(between Company Codes)

•Bank Collection

•Bank Direct Deposit

•Request for Bill of Exchange

•Bill of Exchange

•Refund by Bank Transactions

•Refund by Check

Payables

Receivables

Payment Method in Country


Payment Methods in Company Code


Payment Methods in Company Code - Form Data


Bank Ranking Order


Available Amounts


Company Code Name of Company

1000 Boots - R - Us. .

House Payment Currency Account G/L Clear Charge BusABank Method ID Account Account Type

10000 B 10000 G/L Account 000110000 C 10000 G/L Account 0002

. . . .

. . . .20000 B 20000 G/L Account20000 C 20000 G/L Account20000 D 20001 G/L Account

G/L Account Assignment for Bank Accounts


Euro

JPY USD

Payment Program

AUD

ARSSEK

Open items

It is possible to process payments that contain an alternative payment currency (i.e., a currency other than the invoice currency)

Payment Currency


Payment Blocking Reasons


Automatic Line ItemExample: Payment Program


Office Supplies

20001

Fuji Bank

1940 2

Cash Discount Received

60 2

Accounts Payable

2000 2000 12

Automatic Line Item

1. Invoice 2000 (Payment Term: 3% Cash Discount)2. Cash Disc. 603. Payment 1940

Automatic Line Item Example: Cash Discount Received

2


Chart of Accounts 1000Process SKEAccount 700210

Rules Posting Keys

Cash Discount Received - SKE

Account Assignment Depends on:

Debit / CreditTax Code

Posting Key

Debit 40Credit 50

Automatic Line Items Example: Cash Discount Received


Payment Run Date 05/27/YYIdentification xyz

Posting Date 05/27/YYDocument Entered Until 05/26/YY

Company Codes Payment Next PostingMethod Date

1000 US 06/14/YY

Vendors (from/to) Customers (from/to)1 9999 1 9999

AdditionalLogTRACE

Maintaining Parameters


Start date 06/06Start time HH:MM:SSStart immediately

Status

Proposal is releasedProposal is runningPayment Proposal has been created

Payment Run Date 05/27Identification xyz

Payment Proposal Run


Payment Program

Own Bank

Intermediary Bank(s)

Vendor Bank

Intermediary Banks: Solution

● Companies have the option to specify not only the banks at the start and at the end of the payment cycle (House bank and the business partner bank) but also the banks via which the payment should be made in between.

● The payment program can determine a predefined combination of intermediary banks for each payment


Proposal DataProposal Data Process

Proposal LogDisplayExceptions

DisplayList

• Due date check• Select Payment Method• Payment Records

List of BlockedAccounts/Items

Payment List

Amounts byBusiness Areas

Amounts by Countries

Amounts by Currencies

Amounts byPayment Methods

Amounts by Banks

Payment Proposal Data


Status _________________________________Parameters have been enteredPayment proposal has been createdPayment run has been releasedPayment run is in processPayment run has been carried out:1 generated, 1 completedPayments have been posted

Payment Run Date 05/27Identification xyz

Status _________________________________Parameters have been entered.Payment proposal has been created.

Start date 06/06Start time HH:MM:SSStart immediately

Schedule Payment

( )

Payment Run


Report RFFOUS_C

Check PaymentSummary

PaymentAdvice

Bank Transfer

Print Program

Payment Data

Payment Media


HEADER

ADDRESSPAGEINFOYour account at vendor

MAINTextHeadingLine itemsTotal

CARRYFWD Amount to carry forward

CHECK/CHECKADDVoided or Valid

Check Form Structure


Outgoing Payment Program Chapter Summary

Key Terms

– Outgoing Payment Program

– Payment Method

– Payment Block

– Paying Company Code

– Sending Company Code

– Optimization by Bank Group

– Optimization by Postal Code

– Variant


Outgoing Payment Program Chapter Summary

Key Terms

– Payment Currency

– Intermediary Bank

– Bank Chain


Appendix 1. Alternate Payment Currencies

The automatic payment program can create paymentsfor documents in any desired payment currency.

Local Currency

Transaction Currency

Payment Currency

Payment Amount(optional)


Vendor

1750 BRL

(10000

MXN)

TC= BRL, LC= MXN, PC= USD

Vendor line item: EnteringAltern pymt currency: USDAltern pymt amount : $1000

Warning/ Error:Payment amount differs by 2%from calculated amount:

Currency translation:BRL->MXN: 5.714

+ 1750 * 5.714 * 0.102 = $1,019.49Table of exchange rates:

M: MXN → USD = 0.102




Vendor

invoice10 000

Local currency

MXN

Transaction currency

BRL

1 750

Payment currency

USD

1 000

Payment 9 5001 750 1 000

EXCHANGE RATES

BRL:MXN > 0.175:1MXN:USD > 10:1

BRL:MXN > 0.2:1MXN:USD > 9.5:1

MXN 1 250 exch.

rate diff. gain

MXN 500 GAIN

MXN 750underpmt loss

MXN 8 750

Value of the open item at the current

exchange rate 1750 / 0.2


1. DEFINE SCENARIO (general, business partner specific)

2. ACTIVATE SCENARIO

3. DEFINE A BANK CHAINA) General bank chain - independently of a business partner’s

bank details - in IMGOR

B) Partner Specific - on the application side

House bankBusiness partner (customers and vendors)Cash management carry over

Appendix 2. Intermediary Banks and Bank Chains - Activities


Scenario Description Gen. Search Rec. Search

0001

Sender oriented0002

0003

No bank chain determination

Receiver bank oriented

0004 Receiver oriented

General search:

Find bank chain using key fields:

bank countryand

bank key

Account no./ recipient specific search:

Find bank chain using key fields:

bank country,bank key and

bank account number

Customizing Application

Appendix 2. Intermediary Banks and Bank Chains - Scenarios


Scenario

Ranking Rec. Bank Pmt.Curr.

0002

0

Payment program run

Example:Scenario 0002, Business partner specific search, sender bank is house bank

Sender bank Recip. Bank ctry

0002

1

1st step:

Search with key:

sender bank (bank ctry and

- key)

and payment currency.

(if not successful)

2nd step:

Search with key “payment

currency”

No. Category

1

Corr. country

1 DE

Corr. Bank key Corr. Bank acct.

40050060 86746352

Currency

Bank ctry. sender

UNI

DE

Bank key sender

UNI 10020030

Bank chain assignment:

Correspondence banks

Output

Pmnt. Currency : UNIHouse Bank ctry : DEHouse Bank key : 10020030Vendor : Vendor 1Vend.bank ctry: DEVendor bank:12345678bank acct. no: 87654320

Appendix 2. Intermediary Banks and Bank Chains - Scenarios


HB1

CB 1 CB 2Explanation:

HB = House Bank

CB = Correspondence Bank

BPB = Business Partner Bank

= Payment direction

HB2

CB 3

HB3

BPBs

Appendix 2. Intermediary Banks and Bank Chains - Scenario 1


BPB 1 BPB 2

Explanation:

HB = House Bank

CB = Correspondence Bank

BPB = Business Partner Bank

= Payment direction

HB

BPB 3

CB 1 CB 2 CB 3

Appendix 2. Intermediary Banks and Bank Chains - Scenario II

Sap. ap dilip sadh

Technology

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