Describing Payment Runs

Objective

After completing this lesson, you will be able to explain payment methods and prerequisites for a payment run

Payment Run Prerequisites

Flowchart showing payment processing with four main categories: Outgoing Payments, Incoming Payments, Transfer Posting Internal Clearing, and Payment Cards, all connected to Payment Run.

There are several types of payment methods in FI-CA that are initiated internally. These payment methods are used in connection with the payment program (payment run).

If an incoming payment method is valid (not locked), it's the responsibility of the company to collect the money. For this reason, dunnings do not include open items of this kind.

Flowchart showing considerations before executing a payment run: grouping due items (such as what is to be paid, when, to or from whom, through which bank, and the payment method), with payment method options including check, bank transfer, and credit card.
Payment Method Configuration steps including Payment Method Definition for Country and Company Code with sub-steps such as Payment Method Classification, Payment Processing Type, Master Data Specifications, Payment Medium Format, and Posting Parameters.

The payment method ensures that items with payment methods and items without payment methods are processed separately.

The payment method of the document is not compared with the contract account. It ensures that any amount limits specified for this item are ignored (so that, for example, after a contract is canceled, minimal amounts that would not usually lead to a transfer or a collection can still be paid automatically).

The payment method classification specifies whether a check is to be created, whether the payment is from a post office bank account, or whether the payment method is to be used for incoming payments.

A table titled Payment Run Control with three columns: Business Partner, Contract Account, and Contract. The columns contain categories such as Address, Bank Details, and Payment Card for Business Partner; Company Code, Payment Methods, and Payment Card for Contract Account; and Industry Solution, Payment Methods, and Payment Card for Contract.

The responsible company code has the same function as the paying company code in FI-GL (posting the bank line item responsible for house banks, sender of payment orders).

Other entries relating to payment are determined separately for outgoing and incoming payments within a contract account master record. In both cases, you have the following options:

  • Bank data of a business partner can be specified.

  • Payment methods specified can be overwritten by entries in the document.

A contract account can be locked for outgoing or incoming payments. You can enter default values for the lock duration in customizing (if you create a payment lock without specifying the duration of its validity). Furthermore, when debit memos fail, automatic debits can be prevented until a processing lock date is reached.

If an alternative payer is specified for a contract account, the contract account items of a business partner are all paid together. Payment methods, banks, and locks are determined using this offsetting contract account.

Diagram showing a list of document posting options including payment lock, payment method, alternative payer, various due dates, grouping, only clearable, and clearing lock, with a note to override data in a contract account. The red label on the left reads Post Documents.

A due date is determined by three dates: the cash discount date, the specified due date for net payment, and the deferral date.

If you send an invoice with multiple items, you can use the grouping functionality, but all items are to be collected with one amount. Grouping ensures that items with the same grouping term are paid together.

You can use the Only Clearable indicator when posting an item to ensure that items cannot be paid out or collected. Instead, the amount to be collected or paid out can be cleared only with other debit entries.

You can use event 0652 to override the automatic selection of partner banks created by the payment program. In the standard system, the partner bank is selected as a result of the bank details defined in the contract account (differentiated by incoming and outgoing payment).

You can override this by explicitly specifying bank details in the line item. However, it's not possible, for example, to select a partner bank based on the currency of the items paid if these bank details are not entered in each of the items to be paid.

Diagram of financial postings for contract accounts, receivables, revenues, tax, bank, and bank clearing with respective debits and credits. Contract account and receivables are each debited and credited with 300, revenues credited with 261, tax credited with 39, and bank clearing credited and debited with 300.

[1] Receivable posting

[2] Payment in FI-CA (payment run)

[3] Payment in FI-GL (outgoing bank statement)

How to View Payment Methods

DemoStart Demo

Steps

  1. In Customizing, go to Financial Accounting → Contract Accounts Receivable and Payable → Business Transactions → Payments → Incoming/Outgoing Payment Creation → Define Payment Methods.

  2. Select DE as the country.

  3. Double-click Payment Methods in the dialog structure to the left.

  4. Double-click the payment method A - Direct Debit, and display the details.

  5. Double-click the payment method T - Bank Transfer, and display the details.

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