Automatic Payments F110 in #SAP

Automatic Payments F110 in #SAP

By Cristian Bøhnsdalen

 

According to chatgptfree.ai #artificialintelligence:

“In SAP, automatic payments refer to the process of setting up and executing payments to vendors or other entities automatically, based on predefined criteria and schedules. This functionality is typically used to streamline the payment process, reduce manual effort, and ensure timely and accurate payments.

To set up automatic payments in SAP, users can utilize the Automatic Payment Program (APP) functionality within the Accounts Payable (AP) module. The APP allows users to define payment methods, payment terms, vendor selection criteria, and other parameters to automate the payment process.

Users can schedule automatic payments to run at specific intervals, such as daily, weekly, or monthly, based on the payment terms and due dates of invoices. The system will then generate payment proposals based on the defined criteria and allow users to review and approve the proposed payments before they are executed.

It is important to configure the automatic payment program in SAP correctly, including maintaining accurate vendor master data, payment methods, and bank account information, to ensure the smooth and efficient processing of payments.”

 

We will first check the customizing in FBZP, as it is necessary to have it correctly setup in order to execute the payment run successfully. Later on, we will check the vendor´s master data for the key elements for a successful run.

Consider that, as opposed to manual payment, the automatic payment run does not only post a journal entry but also generates a flat file which is sent to the bank as a payment instruction. We will see more on this later.

FBZP

The customizing begins with an overview on the “company code”. The sending company code and the paying company code usually match, but will not in the case of a shared services center that is paying on behalf of their internal customers.

Special GL transactions to be paid will mark which special GL indicators can be used for payments.

In “paying company codes”, mínimum amount for incoming and outgoing payments will be entered. En “sociedades pagadoras” se ingresará el importe mínimo para entrada y salida de pagos. There will also be a máximum due date for the documents. The forms Will be used when dealing with cheques.

 

In payment methods by country, we will mention if it refers to incoming or outgoing payment. We will classify the payment method, for example bank transfer. We will also define which bank details are mandatory (account number required). There will be a document class (ZP) for payment and another for clearing (ZV). As for the flat file, some countries will use Payment Medium Workbech (USA), while other countries will use RFFOM100 (Argentina), amongst others.

 

In payment methods in company codes a mínimum and máximum amount per payment will be defined per payment method.

 

In bank determination per company code, we will define the following:

-            Ranking Order: prioritize which house bank will be used first.

-            Bank account: define bank account per Account ID.

 

-            Bank account enhanced: more detailed information about account, including account per payment method.

 

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}    Available amounts: maximum amount possible per outgoing payment for the house bank.

 

In house Banks, we will define the bank account per house bank and account ID. This must be done previous to the Bank determination step. Consider that in R/3 this was done in FI12, whereas in S/4 HANA it is done through a web interface that populates these fields.

 

Payment terms are defined in OBB8. Consider that if the item is due after the next posting date in F110 it will not be picked up by the program.

OBB8

Reviewing:

-            Payment methods and house bank (own bank) will be defined in the BP.

-            Vendor bank account will be defined in BP.

-            Payment must be due before next posting date.

-            Payment method must be defined in the invoice.

Failure in these configurations constitute one of the most common errors in payment run F110.

 

Enter an Invoice, making sure payment method is “T”. If payment method is missing in the vendor document F110 will fail.

 

Enter F110 for automatic payment run. Enter run date and an identification ID for the run. Enter posting date, documents entered up to, company codes, payment methods, next posting date (seen before), supplier and branch allocation.

Consider that several suppliers can be run at once.

 

In additional log tick the following boxes:

-            Due date check.

-            Payment method selection in all cases.

-            Line items of the payment documents.

 

Save all these parameters and select “Proposal”. Mark immediate execution and create payment medium to create flat file.

In edit proposal, you will find a square on the supplier meaning it passed ok. If you find a circle, you will have to doble click on the line and take a look at the error message.

Finally click on “Payment run”.

 

We can see that a payment has been generated. Click “Payment” to display details.

The payment generated the following journal entry: paying bank account (defined in customizing) is credited and vendor is debited. Remember this is only the GL entry from the payment run.

 

In order to see the flat file, go to “Environment – Payment Medium – DME administration”. Most companies run a job every night to send all the payment instructions (flat files) to the bank.