Unit 4: Payments

SAP-ERP
Accounts Payable
Version 1.0

Unit 4: Payments

FI: Accounts Payable

Unit 4: Payments

Course Agenda
Unit 1: Introduction Unit 2: Master Data Unit 3: Invoice & Credit Note Processing Unit 4: Payments Unit 5: Inquiries & Account Management Unit 6: Reporting

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Unit Objectives
At the completion of this unit, you will be able to:

Understand how vendor invoices and credit memos are paid and cleared on SAP R/3. Perform an Payment Run Manage and Review Payment Data Display check information Clear Vendor Open Items Reset Cleared Items Correct entries made to a Vendor a/c

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Transaction Codes
Accounts Payable Module

Payment Run F110 (Automatic Payment Run) Manual Clearing F-44 Check Register FCHN Clear Vendor Open Items F- 44 Reset Cleared items FBRA

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Key Terms

Payment Program Proposal Run Payment Proposal Exceptions

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Vendor Payments Method within SAP R/3

Payment Run

The payment run is an process that runs a payment program which determines automatically:
Which vendors to pay When to pay vendors The method of payment (check or wire transfer)

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Payment Run (F110)

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Payment Program Details

Step 1 Set Parameters

In this step of the payment run, you define the settings the system will use in determining which open items to pay, what payment method to use and what information will be captured in the payment log. Key Fields to be completed include:

Next Posting Date date you expect to process another payment run Company Codes which companies you wish to include in the run Payment Method e.g. check or EFT

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Transaction F110 (Payment Program) Set Parameters

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Step 1 Set Parameters

Next you inform the system on what values of Documents to exclude. In this case, Documents with Reason code R and doc type ZEGarnishment payment documents) are excluded during this cycle run. Garnishment payments are run as a separate payment run.

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Step 1 Set Parameters

Next you complete the Additional Log if you wish to specify any of the following:

You are asking the system to log the following events Due Date Check used to keep a log of due date checking of open items Payment method Selection in all cases used to keep a log of all payment methods and banks selected during a payment run. Payment method selection if not successful attempted selection of the payment method and bank is recorded in the log if no permissible payment method or bank is found.

Line Items of the payment documents used to set a trace for payment documents.
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Step 2 - Run Proposal

You are scheduling the payment proposal in this step. The proposal acts as a simulation of an actual run to allow you to perform an analysis and make any necessary adjustment prior to the live run. Although no postings are made by the system at this point, items selected during the proposal run cannot be selected by any subsequent payment run. This prevents duplicate payments from being made. Note these items remain selected until the proposal is either deleted or the payment run is completed.

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Proposal Screen

Select Proposal

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Step 3 Review and Edit Proposal

When the proposal run has completed additional boxes will appear at the top of the screen to allow you to edit and review the proposal.

Proposal Review and Edit Boxes

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Proposal List
The Proposal List will show items that are exceptions. You simply double click into the exception line to review the issue.

Double Click

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Step 4 Re-Run Proposal

When all exception items have been corrected the current proposal has to be deleted to include the changes you may have made on vendor items or master data. When you run the proposal again you can review before you execute the payment run (steps as above also).

The final review is to run the list to analyze the payment run before executing real-time.

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The Proposal log will be similar to this:

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Step 5 Payment Run

Again you will be asked if you want to run the payment run immediately.

When the run has completed:

All open items will be cleared from vendor accounts. Documents with Debit (Dr) and Credit (Cr) entries will be posted to the vendor and general ledger accounts. Files will be created to transfer the payments. Check runs are done on Mondays and Thursdays only while wires are done everyday.

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Payment Run Results Screen

Message to say payment run successful

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Payment Run for Customer

Customers selected instead of Vendors

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Payment Run for Garnishment Payments

Garnishment Document selection Criteria

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Managing and Reviewing Payment Run Data

Managing and reviewing payment data includes the following:

Display Check Information (FCH1) Voiding an issued check (FCH8) Blocking / unblocking vendor invoice Displaying the Check Register

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Display Check (FCH1)

Enter the correct Paying Company Code, House Bank, Account ID and Check number can click enter

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Display Check (FCH1)

Click on the Accompanying docs icon to display FI Documents

Bank Account, Amount and Vendor information is displayed

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Display FI Documents for Checks (PO Inv)

Double click on the line item to display the the Logistic document

Note:

If FI Document displays 51XX Number, then the Invoice displayed is a PO Invoice, else the Document displayed is a Non PO Invoice (10XX X or 900XXNumber)
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Display FI Documents for Checks (PO Inv)

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Display FI Documents for Checks (PO Inv)

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Voiding Issued Checks (FCH8)

Checks can be voided for multiple reasons, such as being lost, damaged or stolen, Incorrect amount on check,Incorrect vendor Name,Illegible Check issued. SAP allows a reason code to be assigned to identify the reason the check is being voided. The payment document is reversed. The check register is updated.

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Stop Payments and Voiding of A/P Checks

Accounts Payable contacts the bank to verify that the check has not been cashed, then issues a "stop payment". Once this is complete, the check needs to be voided in SAP and is either reissued or the FI documents are reversed.

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Voiding the check (FCH8)

Make sure to contact the bank and request a stop payment before voiding or canceling a Payment

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Voiding the check (FCH8)

Enter the company code on which the check was issued , House bank, Account ID, Check number, Void reason code, and use Reversal reason 99.
Use the eyeglasses to display/verify the check info Return to the Cancel Check payment screen and click the Cancel payment button to cancel check

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Re-issuing a check

If the check is to be reissued, the documents are open and a new check will be issued in the next payment run.

Write the vendor number, documents number, and due date on the void/reissue request.
Place in "manual" file bin to be file in disbursement tickler. Disbursement will audit and mail check. Back up with be scanned with vendor invoices for that date.

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Reset Cleared Items

Resetting cleared line items is the process of reactivating line items that have been cleared.

You can reset clearing transactions for individual documents.

When clearing is reset, the clearing data is removed from the line items. You can also reverse the payment document which cleared the open items. Transaction is FBRA

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Reset Cleared Items Transaction Code

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Reset Cleared Items

Only 1 document can be reset at a time. The fields that need to be completed are

The document Numbers The company code The fiscal year the item was posted

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Reversing documents if no check re-issued

If the check is not to be reissued, the documents need to be reversed.

There are two different procedures depending on whether the original document was PO-related or nonPO related.
Remember all documents covered on the CHECK need to be reversed.

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Reversing documents if no check re-issued

Non-PO related invoices

Reverse the invoice using FB08

PO related invoice

Reverse the logistic document using MR8M Use transaction F-44 to clear the financial DR and CR documents

Cross-company Logistic Document

Use transaction FBU8 to reverse the financial document Use transaction F-44 to clear the financial DR and CR documents

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Reversal of Non-PO related invoices

Display the document before reversal using the Display before reversal icon Click on the save icon to reverse the FI invoice

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Reversal of PO related invoices (MR8M)

Display the document before canceling the Invoice. Click on the save icon to cancel the invoice

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Clear Vendor Account Open Items

This function will be used to clear open items from intercompany transactions. Inter-company vendors will be utilized to post and track intercompany changes. No payment will be made (or received) on these transactions. Open items must be cleared from the inter-company vendor accounts. You can only clear open items from one account at a time. Note: This is not an AP functionality

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Clear Open Items Transaction Code

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Clear Open Items Selection Criteria F- 44

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Process Open Items

All Open Items will appear as follows:

You simply double click on the amounts you wish to clear against each other.

Select the line items to clear

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Block / Unblock Vendor Postings From Being Paid

Payments may be temporarily blocked if there is a reason that the vendor or invoice should not be paid.

In order to block a payment, a block payment flag is assigned to the invoice document.
The block may be reversed or unblocked if the reason that prompted the block is resolved. The block is entered on the document through transaction FB02 (change document).

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Check Register (FCHN)

The check register generates a list of checks belonging to a specific company code.

The register is sorted by payment method and check number.

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Check Register Transaction Code

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Check Register Selection Criteria

Enter the reqd. information

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Unit Recap

You can execute Payment Run using transaction F110 You can display Check information using transaction FCH1 You can Void Checks using transaction FCH8 You can Void Checks in SAP using transaction code FCH8 You can Clear Open Items using transaction F-44 You can Reset Cleared Items using transaction FBRA You can view Check Register using transaction FCHN

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Questions and Answers

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