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Setting up the Automatic Payment Program

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Q1:  What is the process of payments using the Automatic Payment Program?

A: The process in general is as follows.

You launch transaction F110 and specify...

The rest - in the free e-book FREQUENTLY ASKED QUESTIONS ON SAP FINANCE.


Q2: What should I start an APP configuration from?

A: The process begins with understanding of payment types in use. Have a look at...

The rest - in the free e-book FREQUENTLY ASKED QUESTIONS ON SAP FINANCE.


Q3: We have a special payment type when paper fax is sent to the “bank”. This fax contains all the parameters for the payment processing. The “bank” is not a real bank but company within our holding. It gives us periodic statements like paper bank statements. Payments of this type are absolutely manual. Do I need to set up special payment method for this?

A: 1) If the payment is done for the...

The rest - in the free e-book FREQUENTLY ASKED QUESTIONS ON SAP FINANCE.


Q4: We periodically pay to the government authorities. For example, taxes. How should we process these payments?

A: I saw 3 scenarios...

The rest - in the free e-book FREQUENTLY ASKED QUESTIONS ON SAP FINANCE.


Q5: Bill of exchange. What is this? IMG has lots of settings about it, but I do not understand if I need them.

A: It is payment with notes (bill of exchange, bill). I have never seen it in use. Simply forget about it.


Q6: Are there any recommendations as to best usage of Identification field in transaction F110? The one below the date, on the first screen. Should we put clerk’s initials in there, country code, company code?

A: The approach depends on...

The rest - in the free e-book FREQUENTLY ASKED QUESTIONS ON SAP FINANCE.


Q7: Why do I have Vendors and Customers on the selection screens of APP? What is relations between Customers and Payment program which is used for outgoing payments?

A: First of all, we can pay Customers too. For example...

The rest - in the free e-book FREQUENTLY ASKED QUESTIONS ON SAP FINANCE.


Q8: Are there any recommendations as to how to use “Next run date” field in APP? How often should the Payment Run be executed?

A: If you use early settlement discount functionality and automatic payment optimization, then...

The rest - in the free e-book FREQUENTLY ASKED QUESTIONS ON SAP FINANCE.


Q9: What is the trigger for APP run? Vendor invoice? Purchase order?

A: APP processes posted invoices and down payment requests. Purchase orders have nothing to do with APP. Frankly speaking, Purchase Orders are not relevant to Finance whatsoever.


Q10: We can control outgoing payments: what and how to pay. There is different situation with incoming payments. How would we know that customer has paid us in order to process the incoming payment in APP? How shall we know which bank account it sent us the money to, if we have several bank accounts? It is also unclear how customer calculates early settlement discount.

A: APP is used for the outgoing payments initiated by our company. Incoming payments are only processed via APP if we initiate them (i.e. direct debit).


Q11: Can we specify payment method in open items? Is it done in invoice?

A: Payment method is specified in several places in SAP system...

The rest - in the free e-book FREQUENTLY ASKED QUESTIONS ON SAP FINANCE.


Q12: I have specified payment method in the vendor master record. But it is not automatically copied into the posted invoice. Why? What should I do?

A: You can specify several payment methods...

The rest - in the free e-book FREQUENTLY ASKED QUESTIONS ON SAP FINANCE.


Q13: Is it possible to change payment method in Payment proposal? Or we need to block the payment and change the payment method somewhere else?

A: When APP has analysed the open items...

The rest - in the free e-book FREQUENTLY ASKED QUESTIONS ON SAP FINANCE.


Q14: Do I need to make any developments for the APP?

A: You will need development only for the output forms, and only...

The rest - in the free e-book FREQUENTLY ASKED QUESTIONS ON SAP FINANCE.


Q15: How will the bank know that it has to process the payment? What is the file format for the bank? Does APP process have a step for the output file generation?

 

A: Formats are for the bank...

The rest - in the free e-book FREQUENTLY ASKED QUESTIONS ON SAP FINANCE.


Q16: Which format can we extract data from the system to send it to the bank?

 

A: It depends on the formats...

The rest - in the free e-book FREQUENTLY ASKED QUESTIONS ON SAP FINANCE.


Q17: What do I need to do in APP settings to enable generation of file with information about outgoing payments?

 

A: There are 6 buttons...

The rest - in the free e-book FREQUENTLY ASKED QUESTIONS ON SAP FINANCE.


Q18: I have decided to use SWIFT MT101 format. Which settings are required in the system in this case? Do I need to make settings for each individual bank?

 

A: Format MT101 is defined by...

The rest - in the free e-book FREQUENTLY ASKED QUESTIONS ON SAP FINANCE.


Q19: Bank asks different structure of field 59 in format SWIFT MT101 for domestic and international payments. How should I set it up?

 

A: Separate payment method is usually used for international payment. Different payment methods can have different variants in PMW.


Q20: How can I set up instruction key which defines who pays commission for the payment, payer or payee? This instruction key is used in field 71A of format SWIFT MT10. How can I assign the key to the bank or vendor?

 

A: IMG Node...

The rest - in the free e-book FREQUENTLY ASKED QUESTIONS ON SAP FINANCE.


Q21: How can I activate functionality “State Central Bank indicator” (SCB indicator), which is used in the field 77B of format SWIFT MT101?

 

A: IMG Node...

The rest - in the free e-book FREQUENTLY ASKED QUESTIONS ON SAP FINANCE.


Q22: Where do I set up output forms?

A: Output forms are defined in the payment methods. You can assign...

The rest - in the free e-book FREQUENTLY ASKED QUESTIONS ON SAP FINANCE.


Q23: Do I need to configure anything for format SWIFT MT101 in transaction DMEE? I do not see anything like this in PAYM tree. If I need to create my own format, which option to choose: flat file or XML message? How can I assign / activate my own new format?

A: Format SWIFT MT101 exists in standard...

The rest - in the free e-book FREQUENTLY ASKED QUESTIONS ON SAP FINANCE.


Q24: I have run the Payment Program, posted the documents and planned the print phase. Where should I see the file in the format SWIFT MT101?

A: F110 – Environment – Payment Media


Q25: I need to print a document for vendor which informs him about payment details. Where can I configure it?

 

A: You can do this in transaction FBZP...

The rest - in the free e-book FREQUENTLY ASKED QUESTIONS ON SAP FINANCE..


Q26: Company uses bank chains. What is this? Does APP support them?

 

A: Bank chains are usually used in international payments...

The rest - in the free e-book FREQUENTLY ASKED QUESTIONS ON SAP FINANCE.


Q27: What are the possible options to display Payment Proposal and list of items in Proposal?

A: Payment Proposal and list of items in it...

The rest - in the free e-book FREQUENTLY ASKED QUESTIONS ON SAP FINANCE.


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