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SAP Consolidated Payables Link 100 1

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SAP Consolidated Payables Link

CUSTOMERDocument Version: 100 – <08-05-2013>

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SAP Consolidated Payables Link........................................................................................... 51 Data Exchange ............................................................................................................. 10

1.1 Business Process ................................................................................................... 112 Payment Advices Generation at Corporate .................................................................... 12

2.1 Process Outbound Message Logging ..................................................................... 132.1.1 Creating and Formatting Payment Advice ......................................................... 142.1.2 Sending Payment Advice and Receiving Acknowledgement ............................. 17

3 Payment Status Update Processing at Corporate .......................................................... 183.1 Process Inbound Message Logging ........................................................................ 19

3.1.1 Processing Payment Status Update ................................................................. 204 Reconciliation Statement Processing at Corporate ........................................................ 21

4.1 Process Payment Reconciliation Statement ............................................................ 225 Corporate Message Cockpit .......................................................................................... 23

5.1 Resending/Reversing Payment Advices .................................................................. 245.2 Viewing Payment Advice Messages, Status, and Logs ............................................ 25

6 Reconciliation Cockpit ................................................................................................... 266.1 Executing RCON .................................................................................................... 27

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SAP Consolidated Payables Link

Product Information

SAP SAP Consolidated Payables Link

Release 1.0

Based on SAP ECC 6.0

Documentation Published May 2013

Consolidated Payables Link is a corporate-to-bank connector for US Bank. This provides astraight-through processing capabilities for SAP ECC implementations to inform US Bank(hereafter referred to as the Bank) of their fund transfers. US Bank can send their proprietaryreconciliation statements RCON1 for Payment Plus Instructions and other notifications to helpyou reconcile your account books.

The solution includes the following business scenarios:

Creating and formatting Payment Advices

Sending Payment Advices

Processing of Payment Status Updates from the bank at Corporate

Processing of Reconciliation statements from the bank at Corporate

Payment Message Cockpit

The US Bank banking application requires payment advices and payment statusconfirmations to be transmitted in ISO20022 message formats and reconciliation statements(for Payment Plus only) in US Bank Proprietary format RCON1.

The solution also enables you to centrally manage, track, and report vendor paymentsprocessed through this platform.

This solution is provided as an add-on to SAP ECC 6.0.

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Implementation ConsiderationsThe solution architecture requires the following components:

SAP ECC with minimum one instance on version as described in the table given below.Lower release versions are subjected to change request and technical feasibility.

Support Package for Software Components

Product Version SAP_APPL SAP_BASIS SAP_AP

SAP ECC 6.0 600 SP21 700 SP26 700 SP27

SAP ECC 6.0 EHP2 602 SP11 700 SP26 700 SP27




SAP ECC 6.0 EHP6 No prerequisites for EHP6

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IntegrationThe following table provides an overview of the integration points with standard SAP functionsand modules along with the purpose.

Integration Purpose

With Automatic PaymentTransactions (transaction F110)

To generate payment instructions for the paymentdocuments created by transaction F110 Theseinstructions will be sent to the bank.

With Payment MediumWorkbench (PMW) and DataMedium Exchange Engine(DMEE)

To configure the message formats for generating yourpayment instructions in the relevant ISO20022 CGI V3-based XML format from the output of the standardpayment run (transaction F110)

With Account Statement Entry(transaction FF.5)

To process the bank statements for reconciling youraccounts

With Payment or OrderRemittance Advice (EDI820)

A type of Electronic Data Interchange (EDI) documentused in the exchange of transaction information betweentrading partners

The solution is designed to use standard SAP programs, features, and functions forcreating and sending payment instructions to the bank using procedures and steps asdescribed in this document. The solution expects payment documents to be createdfrom the F110 Payment Run.

The following figure illustrates the solution architecture:

SAP Consolidated Payables Link — High-level Solution Architecture

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FeaturesPayment Advice Generation

US Bank requires the payment document files created as part of the accounts payables forthe different operations at the corporate to be in V3 CGI compliant format – Customer CreditTransfer Initiation V3 – pain001.001.03.

The system supports the creation and exchange of messages between you and the bank inthe following formats:

Credit instructions sent to the Bank using pain.001.001.03 (v3 CGI compliant format –Customer Credit Transfer Initiation v03); for more information on implementationsteps and details for processing CGI ISO20022 Credit Transfer, see 1665873.

Acknowledgement and status update messages from the bank using pain.002.001.02(v2 CGI compliant format – Payment Status Report v02).

For more information, refer to Payment Advices Generation at Corporate [Page 11].

Payment Status Update

The payment instructions sent by your ECC system are received by the Bank, and the Bankforwards the payment advice to bank applications. These applications, as a part of theirfurther processing, create a check, send for automated clearing, or send to other banks or fortransfers between accounts of the same bank.

On payment file reception, the bank system sends the status of the file reception to your ECCsystem.

For more information, refer to Payment Status Update Processing at Corporate [Page 17].

Corporate Message Cockpit

A Corporate Message Cockpit is required to view files exchanged between you and the Bank.A new transaction (/USC2B/MSG_COCKPIT) is provided to view these files.

This cockpit maintains the history and current status of payment advices transacted betweenyour system and that of the Bank.

For more information, refer to Corporate Message Cockpit [Page 22]

Reconciliation Cockpit

This cockpit is integrated within the Corporate Message cockpit provided to view thereconciliation files received from the Bank. A new transaction (/USC2B/RCON1_COCKPIT) isprovided to view these files.

The cockpit provides the capability to track the payment status of Payment Plus instructionsissued to the Bank.

This cockpit shows the data at the following levels:

Payment Plus instructions that are delivered by your system to the Bank

Payment Plus instruction debited by the merchant

For more information, refer to Reconciliation Cockpit [Page 25].

http://service.sap.com/~form/handler?_APP=01100107900000000342&_EVENT=REDIR&_NNUM=1665873&_NLANG=en&_NVERS=0

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PrerequisitesFor the solution Consolidated Payables Link and its component processes to function, thefollowing objects must be available in the system:

Vendor master records.

SAP ECC customizing for Payment Medium Workbench is set up with all payment-related settings, which includes US Bank relevant payment methods.

DMEE is configured to process identified file format ISO CGI Pain.001.001.03.

Necessary file transmission channels are pre-configured in both SAP ECC and USbank systems for communication.

SAP ECC 6.0 without enhancement packs SAP Basis 700 Support Pack 25,SAP_APPL Support pack 20, SAP_AP Support pack 26 (Per SAP Note 1600482).

Connection between ECC 6.0 and US Bank banking systems supporting requisiteISO 20022 and US Bank Proprietary formats.

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1 Data Exchange

Processing your credit instructions involves the following data exchange between your systemand that of the bank:

Instruction messages are sent from your SAP ECC to the bank.

Acknowledgement messages and status update messages are sent from the bank toyour SAP ECC.

Bank statements (RCON1) for your Payment Plus instructions are sent from the bankto your SAP ECC.

There is no specific data exchange as the solution creates a text file in your configureddirectory.

Message FormatsThe solution supports the exchange of messages in the following ISO 20022 formats:

pain.001.001.03: Message format used for initiating credit instructions.

pain.002.001.03: Message format for acknowledgement and status updates from thebank.

Reconciliation messages are (RCON1) integrated with your message cockpit to viewthe reconciliation files received from the Bank.

Message Format Data

pain.001.001.03 The following credit-instructions types (payment methods) aresupported for transmission:

Local payments –Domestic ACH

Domestic and international payments – wire (alldomestic wire transfers are for USD only)

Check

Payment Plus – USD only

pain.002.001.03 Acknowledgement and status messages for instructions sentusing pain.001.001.03

Reconciliation Messages(RCON1)

Payment Plus instructions that are delivered byCorporate to the bank

Payment Plus instructions debited by the merchant

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1.1 Business Process

The overall business process of this development is categorized into following major businessprocesses,

Payment Advices Generation at Corporate

Payment Advices Status Update Processing at Corporate

Reconciliation Statement Processing at corporate (for Payment Plus instructions only)

Corporate Message Cockpit at Corporate to track and report transactions betweenbank and Corporate

RCON1 messages cockpit to track payment status and reconciliation of payment plusinstructions

Prerequisites You have configured the master data required by the bank.

You have configured your payment methods in Customizing under Financial SupplyChain Management > Consolidated Payables Link for US Bank.

You have configured your instruction message formats in Customizing underFinancial Supply Chain Management > Consolidated Payables Link for US Bank.

You have maintained the Customizing settings for the payment medium formatUSC2B/CGI_XML_CT.

Required ObjectsIn order to support the corporate-to-bank connectivity process and all of the relatedcomponents it is important to note the following objects are necessary within the system.

US Bank-relevant house bank data

Payment methods

DMEE payment formats

Application server file directories for payment file operations

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2 Payment Advices Generation at Corporate

To enter a vendor invoice or customer invoice for payment, you use the standard SAPprograms Enter Vendor Invoice or Generate Purchase Order (PO) Invoice respectively(transactions FB60/MIRO).

To execute the payment runs corresponding to the vendor invoices or customer invoices youhave entered, you use the program Automatic Payment Transactions (transaction F110). Onexecution of the payment run and creation of the messages, the instructions meant to be sentto the bank (based on the payment method selected for the bank) are processed by thesolution and transferred.

Payment advice generation is a two-step process.

1. You create a Payment Advice (Creating and Formatting Payment Advice [Page 13]).

2. You send the payment advice and receive acknowledgement (Sending PaymentAdvice and Receiving Acknowledgement [Page 16]).

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2.1 Process Outbound Message Logging

Given below is the process for Outbound Message Logging:

Process1. When a payment run for vendor open items is executed, payment advices are

created and sent to Payment Medium Workbench (DMEE engine) for formatting andtransfer to the Bank.

2. After the payment information is formatted, the custom processing routine creates aunique identification GUID for each payment advice file created for status processingand stores it in a custom database along with other information such as the SAPPayment Advice number.

3. Each payment advice file is uniquely identified by its group ID generated duringpayment information formatting in DMEE Engine.

4. At the end of the payment run, the formatted file is placed in pre-configured serverdirectories by DMEE routines.

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2.1.1 Creating and Formatting Payment Advice

Creating a Payment Advice is a two-step procedure:

Creating an invoice

Executing a payment run

Invoice creation, which is the first step of creating a payment advice, involves three sub-steps:

Creating an invoice

Creating a goods receipt purchase order (only for MM invoices)

Creating a document

ProcedureCreating an Invoice

Invoices can be created for an FI or for MM invoices:

1. Create an invoice for FI.

a. Go to Enter Vendor Invoice (transaction FB60).

b. For the first time, you will be prompted to specify a company code; enter theappropriate company code and choose Continue.

c. On the Basic data tab page, enter vendor account, G/L account number,invoice date, amount to be paid, and currency.

d. On the Payment tab page, choose C-Check from F4 help. Note the invoicedetails you have entered; for example, vendor account, payment method, andso on.

e. Select the house bank from F4 Help. If a house bank is provided, it will betaken into consideration otherwise, the default house bank will be considered.

f. Enter details on the other tab pages as per your daily-operations procedures.

g. Choose the Simulate pushbutton; verify the invoice details on the DocumentOverview screen that is displayed, and choose (Save).

Your document will be created and its number will be displayed on the statusbar.

2. Create an invoice with Purchase Order.

a. Go to Create Purchase Order (transaction ME21.)

b. Enter the PO number in the Standard PO field.

c. Fill in the vendor details. The system will navigate to the Org. Data tab.

d. In the Org. Data, complete the Purchasing Org, Purchasing Group, Material,PO Quantity, Net Price, and Plant fields.

e. Fill the G/L account number and cost center.

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f. Choose Save.

g. Choose Enter. A PO will be created and an information message will bedisplayed showing generated PO number.

Your document will be created and its number will be displayed on the statusbar.

3. Create a Goods Receipt Purchase Order.

a. Go to Goods Receipt Purchase Order (transaction MIGO.)

b. Enter the purchase order number entered previously in the GeneratingVendor Invoice through Purchase Order.

The PO will be available in the Navigation pane.

c. Check the Item OK check box.

d. Choose the Post button or the Save button.

The material document will be posted and an information message will bedisplayed showing the material document.

For example: material document XXXXXXXXXX posted.

4. Create a Document.

a. Go to Enter Incoming Invoice (transaction MIRO.)

b. On the Basic data tab page, enter invoice payment date, amount, andpurchase order number.

c. Choose Enter.

The amount you entered under the Basic Data tab and the amount filledin during purchase order creation should be the same.

d. On the Payment tab page, fill the required details.

e. Choose the Simulate push button; verify the invoice details on the DocumentOverview screen that is displayed.

The Simulate Document in USD (Document Currency) pop up dialogopens up.

f. In the Simulate Document in USD (Document Currency) pop up dialog, enterProcurement Document and click the Post button.

g. Choose (Save) and verify the Invoice Document.

The document will be created and an information message will be displayedshowing the document number.

For example: document no. 5105600136 created.

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Executing Payment Run

1. From your SAP Easy Access menu, go to transaction F110 and navigate to programAutomatic Payment Transactions > Accounting > Financial Accounting > AccountsPayable > Periodic Processing/Payments.

2. On the Status tab page, enter the run date and identification as per your dailyoperations procedures.

3. On the Parameter tab page, enter the company code, payment method (C-Check),and vendor or customer for whom you previously entered the invoices. Enter the dateof the next payment run as per your daily-operations procedures.

4. On the Additional Log tab page, choose the settings as per your recommendedlogging requirements. On this tab page, also enter the vendor or customer accountnumbers used previously.

5. Enter other details or make additional settings on the other tabs as per your dailyoperations procedures.

6. Choose (Save).

7. On the Status tab choose the Payment Proposal push button, followed by the Statuspush button.

8. Once the status message Payment proposal has been created is displayed, choosethe Payment Run push button.

9. In the Automatic Payment Transaction screen, create the Payment Medium fromEnvironment > Payment Medium > Cross-Payment Run Payment Medium > CreatePayment Medium.

You can now format the payment advice.

10. After creating payment advice, select directoryDIR_USC2B/usr/sap/XNT/SYS/global/DIR_USC2B.

11. Double-click the file name Outbound.

12. Double-click the file name New.

You can see the created file under this directory.

ResultYour payment instruction to the Bank will be created in the appropriate ISO20022 format –that is, in v3 CGI-compliant pain.001.001.03 for payment instructions.

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2.1.2 Sending Payment Advice and ReceivingAcknowledgementProcedure

1. Use the file download option in the Payment Message Cockpit to download and viewthe payment file.

2. Alternatively, go to transaction AL11.

The payment advice will be sent by placing or storing the file under the file nameOutbound > NEW.

Acknowledgement will be received in the form of file stored under file name Inbound> NEW.

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3 Payment Status Update Processing at Corporate

The payment instructions sent by your ECC system is received by the Bank and the Bankforwards the payment advice to bank applications which as a part of their further processingcreate a check, automated clearing, or send it to the other bank or for transfers betweenaccounts of the same bank.

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3.1 Process Inbound Message Logging

Given below is the process for Inbound Message Logging:

ProcessFor every payment advice file received by the Bank, an acknowledgement message is sent toyour ECC system with RCVD status for the payment group in the file.

The payment status file is placed in a pre-determined file path and is read by a periodic batchjob that performs checks on data integrity and validity. If the file contents are found valid, acustom processing routine retrieves the status reference for the payment group ID received inthe file and updates it with the RCVD status. After the file is processed, it is deleted from theactive directory.

Any error that occurs during the processing of inbound status files is logged in the applicationlog for the payment group ID. If the payment group ID is invalid, the errors are stored in a logfile that is stored in a log folder on your ECC system.

All processed files are transferred to a processed folder in your ECC system after processing.If any errors occur during inbound file processing, the file is transferred to an error folder.

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3.1.1 Processing Payment Status UpdateProcedure

1. To process the inbound files immediately, execute the simulation report –/usc2b/inbound_file_processing via t-code SE38. In the production environment, thisreport is scheduled to run at user-defined intervals to poll and process inbound filesreceived from the Bank.

2. Execute simulation report /USC2B/INBOUND_FILE_PROCESSING via t-code SE38.

3. After executing the simulation report, execute report/USC2B/PAYMENT_MESSAGE_COCKPIT.

4. Enter the selection criteria and click the (Execute) icon or press F8. The ALVshowing payment details appears. After receiving the payment instruction, the statusof the payment advice as Payment Instruction Received is visible.

5. Select a row and click the Status History button. The payment status history appears.

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4 Reconciliation Statement Processing atCorporate

The payment instructions sent by your ECC system are forwarded as fund transfer requestsby the Bank to counterparties either within the Bank or outside.

The Bank then sends reconciliation statements to your ECC system to update and reconcilethe books only for Payment Plus transactions.

For other payment types, the Bank shall not send any reconciliation statements toyour system.

To provide this data, the Bank’s systems will send a text file to your ECC system. Based onthe solution configuration, the reconciliation files will trigger FF.5 and follow the processesthat are defined in your system.

Prerequisites The Bank should provide a text file of type RCON1.

The text file should be formatted as per the rules mentioned in the document'BRANDED_RCON1_File_Specifications.pdf'.

The payment advice should be created using payment method Payment Plus, and itshould be sent to the Bank.

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4.1 Process Payment Reconciliation Statement

Given below is the process for Payment Reconciliation Statement:

ProcessA custom program is created to facilitate reception and processing of reconciliation statementfiles. A periodically scheduled batch job monitors the preconfigured server directories in yourECC system for payment reconciliation files and triggers reconciliation update program forprocessing.

The reconciliation routine reads the contents in the RCON1 file and validates the file contentfor data integrity. In case of any errors, same will be logged in the application log and furtherprocessing is terminated.

After successful validation, information in various records in the file is extracted forsubsequent updation in the custom reconciliation DB.

For fully reconciled Payment Plus transactions, the data is formatted to standard FF.5payment structures to enable standard electronic bank settlement processing program (FF.5)for posting payment settlements. The automatic reconciliation for payment plus can beactivated via configuration “Maintain RCON1 Inbound File Processing Rules”

All partial reconciled Payment Plus transactions remain in the same status till they are fullyreconciled at the Bank and their status is communicated to you.

The RCON1 data received from the Bank can be viewed in the Reconciliation Cockpit.

For more information, refer to Reconciliation Cockpit [Page 25].

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5 Corporate Message Cockpit

Every payment advice file sent by you must be logged in the message cockpit created in yourECC system. When the acknowledgement is received from the Bank, statuses are loggedunder the master payment record.

The message cockpit authorizes you to:

View payment advices created and sent to the Bank

View reception status of payment advice file and view status change history

View payment files sent to the Bank (via standard DME logs)

Resend payment advice files

Reverse payment advice sent to the Bank

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5.1 Resending/Reversing Payment AdvicesProcedureThe payment file sent originally can be resent to the Bank when the file is rejected by theBank or is lost in transmission. However, these functionalities can be accessed only with theauthorizations given below:

RESEND – /USC2B/CCP

REJECT – /USC2B/CCP

For the Payment message, the RESEND functionality is not allowed if theacknowledgement for the corresponding message (pain002 message) has beenreceived and processed successfully.

1. Click the Resend button.

The system searches for the file in the application server and resends the file if it isnot found here.

In certain scenarios, after having acknowledged the payment instructions, there maybe a need to reverse the payment. In such a scenario, one needs to use the ReversePayment functionality.

For the credit instructions, the REJECT functionality is allowed only if theacknowledgement for the corresponding message (pain002 message) has beenreceived and processed successfully.

2. In the Credit Instruction level screen, select a record and click the Reverse Paymentbutton.

3. In the Reverse Payment pop up dialog, click the Yes button to confirm.

4. In the next pop up dialog, select a rejection code from the Reason Code field and addappropriate comments.

5. Press Enter.

ResultThe payment document is reversed and a success message saying Payment document <docnum> is displayed in the status bar.

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5.2 Viewing Payment Advice Messages, Status,and LogsProcedure

1. After generating a payment advice, execute reportUSC2B/PAYMENT_MESSAGE_COCKPIT.

2. Enter the selection criteria and execute or press F8. the status Payment MediumCreated is visible.

3. Select a row and double-click it to view the payment information/batches that are partof this group.

4. Select a line displayed at the Payment Information level and double-click it to view thepayment instructions that are part of this batch.

5. Select a row and click the Status History button to see the payment status history.

6. Select a row and click the Message Log button to see the detailed log.

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6 Reconciliation Cockpit

The payment instructions sent by your ECC system are forwarded as a funds transfer requestby the Bank to counterparties either within the Bank or outside.

The Bank will then send reconciliation statements (RCON1) to your ECC system to update andreconcile your books only for Payment Plus transactions. For other payment types, the Bankwill not send any reconciliation statements.

The Bank system sends a text file to your ECC system. The reconciliation files triggers anFF.5 transaction and follows the processes that are defined in your systems.

A new transaction /USC2B/RCON1_COCKPIT is provided to view files. For more informationon message formats, refer to US Bank RCON1 file specifications.

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6.1 Executing RCONProcedure

1. Execute report /USC2B/RCON1_COCKPIT.

2. Enter the selection criteria and execute it. The list of inbound reconciliation messagesALV with the details of the payment records is displayed.

3. Select a row and click the Payment Line Item Detail Records button. The list ofpayment line item details records ALV (which typically contains the invoice details) isdisplayed.

4. In the Payment Details list screen, click the “Show Log” link.

5. Start transaction AL11 and navigate to the Inbound > Archive directory. Theprocessed file is moved from the Inbound > New folder to the Inbound > Archivefolder.

For more information on various file record details, refer to US Bank RCON1 filespecifications.

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