The majority of invoices of Bike Company are paid using the upload bank file functionality of SAP S/4HANA. Consequently, it is important for Michael to understand the process for incoming payments, how to review the status of post-processing, and to how manually clear unmatched payments. Finally, he should be able to browse the system to view the customer's payments and see which invoices they were cleared against.
Michael soon finds out that the majority of incoming payments are usually uploaded from a bank statement file. He has learned about the manual incoming process and will apply that knowledge to the processing of incoming payment files, especially the accounting entries that take place, and the handing of payments that have to be post-processed.
Incoming payments are usually handled differently depending on the bank or institution; therefore, standard predefined bank formats might not be applicable for all incoming payments.
When it comes to electronic bank statements, the following internationally recognized formats exist:
- The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is an institution that provides financial services around the world. The network is widely recognized as a secure way to handle bank transactions and integrates in many cases with SAP ERP software. The message types for bank statements typically used in the SWIFT environment are MT940, MT942, and MT950.
- In the course of the SEPA implementation across Europe, not only was the outgoing data transfer from enterprises towards banks reworked, but also the bank-to-customer side. The SEPA Cash Management Message Types (SEPA CAMT) was therefore implemented in due course. Message types for bank statements typically used in the SEPA CAMT environment are CAMT.052, CAMT.053, and CAMT.054.
- In the United States, the BAI Format is used. In short, the BAI2 format is a cash management balance reporting specification developed by the BAI (Bank Administration Institute). From experience, the BAI2 format is widely used in the US and is globally supported by most of the major global banks, but outside of the US and with local banks, corporates might find that the BAI2 format has limited availability. Message Types typically associated with the Bank Administration Institute are BAI or BAI2.
For incoming payment files that do not meet the standard bank format, SAP S/4HANA accommodates this by allowing the uploads of CSV or TXT files which contain remittance advices.
During the upload, the system first checks the file format to confirm whether it aligns with the accepted structure. Moreover, it checks the compliance of the data with the payment medium format, payment method, including the validation of each field - their sizes, types, required, optional, and so on.
A log will appear to show if the upload has been successful or not.
In case there are any errors in the file, the system will provide a detailed log highlighting the issues which need to be corrected.
Always ensure that the payment file is in the correct format as specified by the application to ensure a successful upload. In addition, the availability of these options might change as per the security permissions assigned to the user.
To learn more about how to upload a payment file in the SAP S/4HANA Cloud public edition system, consult the video in the following demonstration, How to Import Payment Files.