Configuring the Payment Program

Objectives

After completing this lesson, you will be able to:
  • Configure the payment program
  • Modify the payment settings for company codes
  • Modify the payment methods

Configuration Process Flow for the Payment Program

Most of the settings for the payment program can be accessed directly through the user side of the application. The settings are divided into categories, as shown in the figure Configure Payment Program.

Call transaction FBZP.SAP interface for configuring payment program settings, offering options to manage company codes, payment methods, bank determination, and house banks.

The main payment program configuration menu has buttons for each area. To ensure the configuration is complete, work from top to bottom through each button. To access this customizing screen from the SAP Easy Access menu, execute transaction FBZP (Maintain Pmnt Program Configuration) and use the buttons to access the necessary configuration area.

Alternatively, you can use the SAP Reference IMG Financial Accounting→Accounts Receivable and Accounts Payable→Business Transactions→Outgoing Payments→Automatic Outgoing Payments→Payment Method/Bank Selection for Payment Program. In the SAP Reference IMG, you will need to select each relevant area.

The first three areas require few configuration changes. The standard system contains many payment methods for each country and their corresponding forms.

Company Code Settings

In this lesson, we look at the parameters that you are required to set for company codes.

All Company Codes

Settings to Define

For all company codes, you are required to define the following parameters:

ParameterDescription
Sending company codes

If company code A pays on behalf of company code B, then company B is the sending company code. If a company code is not specified, the application automatically regards the sending company code as the paying company code.

Paying company codes

Here you find the company code that processes the payment transactions.

Cash discounts

You can define a minimum discount limit for outgoing payments. If the discount is less than this limit, it is ignored and the payment is not made until the due date for net payment. The maximum discount setting causes the maximum discount to be used, even if the cash discount period has been exceeded.

Tolerances days of payments

This parameter allows you to specify the number of days by which the cash discount period and the period for the net payment may be exceeded (delayed payment).

If you know that your vendors usually grant a certain number of grace days, you can enter tolerance days for payables for every company code. These tolerance days help postpone the payment of some due items until the next payment run, while still receiving the appropriate discounts.

Customer and vendor transactions

The Vendor/Customer Sp. G/L Transactions to be paid field specifies the special general ledger transactions that can be processed using the payment program.

Payment method supplements

If activated, it allows you to print and sort payments.

You can create a two-character payment method supplement that can be assigned to customer or vendor master records. When you enter a document in the system, it automatically assigns the relevant data to individual items. You can also manually enter or overwrite the data in the line item when you create a document.

Paying Company Codes

For each paying company code, you need to define the following settings:

  • Minimum amounts for payments:

    You can define the minimum amount required for incoming and outgoing payments. Payments below this cut-off amount will not be made.

  • Forms for payment advice and EDI:

    You can define the SAPScript or PDF form that will be used for each paying company code.

  • Bill of exchange specifications:

    You can define the number of bills of exchange created for each account during the payment run for the bill of exchange payment method. In addition, you can control which open items for the bill of exchange payment method will be considered during the payment run using due-date specifications.

Note

On the Sender Details screen, you can define any company code-dependent standard texts for the payment forms.

Payment Methods

Payment methods have two components: country-specific settings and company code-specific settings.

For each country, you need to define the valid methods of payment (such as check or bank transfer).

For each payment method, you need to define the following basic requirements:

  • Payment type: Outgoing or incoming payment.
  • Characteristics for classifying the payment method: The method of payment and its characteristics.
  • Master record requirements: Requirements of a particular payment method (such as the bank details) which must be met for invoices to be paid with the payment method.
  • Document types: The document types used for posting and clearing documents.
  • Payment medium: Format settings for the Payment Medium Workbench (PMW).
  • Permitted currencies: You can restrict payment methods to specific currencies. On the Permitted currencies screen, enter any currency permitted for the payment method. If there are no entries on this screen, the payment method is valid for all currencies.

Company Code-Specific Settings

Company Code Settings

The following table summarizes the company code-specific parameters that you are required to specify for each payment method.

SpecificationDescription
Minimum and maximum payment amountsAny payment amounts lower or higher than the minimum or maximum amount, respectively, will be excluded from the payment run.
Foreign payments/Foreign currency payments
  • Foreign business partner allowed (address): When selected, this indicator allows the system to process foreign customers and vendors using this payment method.
  • Customer or vendor bank abroad allowed (bank country): When selected, this indicator allows customer and vendor banks from abroad to make payments.
  • Foreign currency allowed: When selected, this indicator allows you to use foreign currency with this payment method.
Grouping options
  • Single payment for marked items: Items that use this payment method are paid individually. If an item does not contain a payment method (in this case, the master record determines the payment method), it can be grouped together with other items.
  • Payment per due day: This option specifies that only items due on the same day are paid with a single payment.
Bank group optimizationThe payment program will try to pay from a bank within the same Automated Clearing House (ACH) system.
Postal code optimizationYou can assign banks to particular postal areas by using the change icon. When you select postal code optimization, the payment program tries to make a payment from the bank based on the postcode of residence specified in the customer or vendor account.
Forms for payment mediaYou can specify the name of the SAPscript or the PDF form for the payment media in the Form Data area.

Note

The specifications for each payment method can differ across company codes.

Configure the Payment Program

ExerciseStart Exercise

Summary

  • Configure payment program settings for company codes and payment methods.
  • Define payment methods with country-specific and company code-specific settings.
  • Set parameters for minimum/maximum payment amounts and foreign currency payments.
  • Optimize payment processes with bank group and postal code settings.

Learning

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