CashFlowManagement BA en

Product Documentation SAP Business ByDesign FP3.
Cash Flow Management
PUBLIC
Table Of Contents
Cash Flow Management ..................................................................................
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2.1 2.1.1 2.1.2 2.1.3 2.1.4 2.1.5 2.1.6 2.2 2.2.1 2.2.2 2.2.3 2.2.4 2.3 2.3.1 2.3.2 2.3.3 2.3.4 2.3.5 2.3.6 2.3.7
Business Background ......................................................................................

Outgoing Payments ............................................................................................................... Outgoing Payments ............................................................................................................... Determination of Payment Method / Reservation .................................................................. Internally Initiated Automatic Outgoing Payments ................................................................. Externally Initiated Outgoing Payments ................................................................................ Internally Initiated Manual Outgoing Payments ..................................................................... Creating User-Defined Payment File Formats ...................................................................... Incoming Payments ............................................................................................................... Incoming Payments ............................................................................................................... Automatic Incoming Payments .............................................................................................. Manual Incoming Payments .................................................................................................. Incoming Payments by SEPA Direct Debit ............................................................................ Special Business Transactions ............................................................................................. Canceling a Supplier Invoice ................................................................................................. Canceling a Customer Invoice .............................................................................................. Customer Payments by Credit Card ...................................................................................... Customer Remittance Advices .............................................................................................. Electronic Submission of Outgoing Payment Advices ........................................................... Supplier Remittance Advices ................................................................................................ Point-of-Sale Transaction Processing ...................................................................................
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11 11 14 16 21 25 30 31 31 35 40 47 52 52 53 54 62 65 67 70
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3.1 3.1.1 3.1.2 3.1.3 3.1.4 3.1.5 3.1.6 3.2 3.2.1 3.3 3.3.1 3.3.2 3.4
Payables ..........................................................................................................
Business Background ............................................................................................................ Open Items Payables ............................................................................................................ Supplier Account Monitor ...................................................................................................... Cash Discounts for Payables in Financials ........................................................................... Down Payments Made in Financials ..................................................................................... Foreign Currency Remeasurement ....................................................................................... Reclassification ..................................................................................................................... Suppliers View ....................................................................................................................... Quick Guide for Suppliers (in Payables) ............................................................................... Automatic Payments View ..................................................................................................... Quick Guide for Automatic Payments (Payables) ................................................................. Approve an Automatic Payment Proposal ............................................................................. Payment Clearing View .........................................................................................................
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73 73 74 78 81 82 84 86 86 88 88 90 90
2011 SAP AG. All rights reserved. P U B L I C
SAP Business ByDesign FP3.5 Table Of Contents
3.4.1 3.4.2 3.4.3 3.4.4 3.5 3.5.1 3.5.2 3.5.3 3.5.4 3.5.5 3.5.6 3.5.7 3.5.8 3.5.8.1 3.5.8.2 3.5.8.3 3.5.8.3.1 3.5.8.3.2 3.5.8.3.3 3.5.8.3.4 3.6 3.6.1 3.6.2 3.6.3 3.6.4 3.6.5 3.6.6 3.6.7
Quick Guide for Payment Clearing (Payables) ...................................................................... Clear An Outgoing Payment Manually .................................................................................. Using the Open Items Table .................................................................................................. Finding Open Items for Externally-Initiated Payments .......................................................... Periodic Tasks ....................................................................................................................... Quick Guide for Payment Runs (Payables) ........................................................................... Create and Edit Payment Proposals for Payables ................................................................ Messages in the Payment Run Application Log .................................................................... Quick Guide for Balance Confirmation Runs (Payables) ...................................................... Create a Balance Confirmation Run ...................................................................................... Quick Guide for Foreign Currency Remeasurement (Payables) ........................................... Quick Guide for Reclassification (in Payables) ..................................................................... Central Bank Reporting ......................................................................................................... Quick Guide for Central Bank Reporting ............................................................................... Perform Central Bank Reporting .......................................................................................... Related Information ............................................................................................................... Configuration Guide for Central Bank Code Determination Austria .................................. Configuration: Determination of International Organizations for Central Bank Reporting Austria ................................................................................................................................... Configuration Guide for Central Bank Code Determination France .................................. Configuration Guide for Central Bank Code Determination Germany .............................. Reports .................................................................................................................................. Aging List for Payables .......................................................................................................... Forecast List for Payables ..................................................................................................... Details to Items of Suppliers .................................................................................................. Details to Open Items of Suppliers ........................................................................................ Payment Statistics - Suppliers ............................................................................................... Payment Statistics Cash Discount ..................................................................................... Supplier List ...........................................................................................................................
90 92 93 94 95 95 96 99 101 103 104 107 110 110 112 114 114 117 118 120 122 122 124 126 127 128 129 131
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4.1 4.1.1 4.1.2 4.1.3 4.1.4 4.1.5 4.1.6 4.2 4.2.1 4.2.2 4.3 4.3.1 4.3.2 4.4
Receivables .....................................................................................................
Business Background ............................................................................................................ Open Items Receivables ....................................................................................................... Customer Account Monitor .................................................................................................... Automatic Dunning ................................................................................................................ Down Payments Received in Financials ............................................................................... Cash Discounts for Receivables in Financials ...................................................................... Refund of Payments Received .............................................................................................. Customers View .................................................................................................................... Quick Guide for Customers (in Receivables) ........................................................................ Create a SEPA Direct Debit Mandate ................................................................................... Automatic Payments View ..................................................................................................... Quick Guide for Automatic Payments (Receivables) ............................................................ Approve an Automatic Payment Proposal ............................................................................. Payment Clearing View .........................................................................................................
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132 132 133 138 140 142 144 146 146 148 150 150 152 152
P U B L I C 2011 SAP AG. All rights reserved.
4.4.1 4.4.2 4.5 4.5.1 4.5.2 4.6 4.6.1 4.6.2 4.6.3 4.6.4 4.6.5 4.6.6 4.6.7 4.6.8 4.6.9 4.7 4.7.1 4.7.2 4.7.3 4.7.4 4.7.5 4.7.6 4.7.7 4.7.8 4.7.9 4.7.10 4.7.11
Quick Guide for Payment Clearing (Receivables) ................................................................. Clear an Incoming Payment Manually ................................................................................... Dunning View ........................................................................................................................ Quick Guide for Dunning ....................................................................................................... Edit and Execute Dunning ..................................................................................................... Periodic Tasks ....................................................................................................................... Quick Guide for Dunning Runs .............................................................................................. Create a Dunning Run ........................................................................................................... Quick Guide for Payment Runs (Receivables) ...................................................................... Create and Edit Payment Proposals for Receivables ........................................................... Quick Guide for Balance Confirmation Runs (Receivables) .................................................. Create a Balance Confirmation Run ...................................................................................... Quick Guide for Foreign Currency Remeasurement (Receivables) ...................................... Quick Guide for Reclassification (In Receivables) ................................................................ Quick Guide for Central Bank Reporting ............................................................................... Reports .................................................................................................................................. Aging List for Receivables ..................................................................................................... Forecast List for Receivables ................................................................................................ Dunning History - Customers ................................................................................................ Dunning History - Documents ............................................................................................... Dunning Statistics .................................................................................................................. Details to Items of Customers ............................................................................................... Details to Open Items of Customers ..................................................................................... Customer List ........................................................................................................................ Account Financial Data ......................................................................................................... SEPA Mandate List ............................................................................................................... Accounts Receivable Pledging of Open Items ...................................................................
152 154 155 155 155 156 156 159 159 161 164 165 166 169 173 174 174 175 177 178 179 180 181 183 183 185 186
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5.1 5.1.1 5.1.2 5.1.3 5.2 5.2.1 5.3 5.3.1 5.3.2 5.3.3 5.3.4 5.3.5 5.3.6 5.3.7 5.4 5.4.1
Payment Management ....................................................................................

Business Background ............................................................................................................ Payment Allocation and Clearing .......................................................................................... Credit Card Chargebacks ...................................................................................................... Cash Outpayments - Switzerland .......................................................................................... Payment Monitor View .......................................................................................................... Payment Monitor Quick Guide .............................................................................................. Payment Allocation View ....................................................................................................... Quick Guide for Payment Allocation ..................................................................................... Allocate a Payment Manually ................................................................................................ Memo Line Analysis Rules .................................................................................................... Search Memo Lines for Invoice Numbers ............................................................................. Assign an Account to a Rule for Analyzing Memo Lines ....................................................... Creation of Memo Line Analysis Rules for Common Use Cases .......................................... Rule Types For Analyzing Memo Lines ................................................................................. Petty Cash View .................................................................................................................... Quick Guide for Petty Cash ...................................................................................................
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188 188 190 193 194 194 200 200 202 203 206 209 211 216 217 217
5.4.2 5.4.3 5.4.4 5.5 5.5.1 5.5.2 5.5.3 5.5.4 5.6 5.6.1 5.6.2 5.7 5.7.1 5.7.2 5.7.3 5.7.4 5.7.5 5.7.6 5.8 5.8.1 5.8.2
Enter an Incoming Cash Payment ......................................................................................... Create An Outgoing Cash Payment ...................................................................................... Transfer Cash ........................................................................................................................ Deposits View ........................................................................................................................ Quick Guide for Check Deposits ........................................................................................... Quick Guide for Lockbox Batches ......................................................................................... Quick Guide for Bill of Exchange Deposits ............................................................................ Quick Guide for Bill of Exchange Cashings ........................................................................... Remittance Advices View ...................................................................................................... Quick Guide for Remittance Advices ..................................................................................... Enter a Remittance Advice .................................................................................................... Periodic Tasks View .............................................................................................................. Quick Guide for Payment Media Runs .................................................................................. Create a Payment Media Run ............................................................................................... Quick Guide for Payment Deposit Runs ................................................................................ Quick Guide for Credit Card Settlement Runs ...................................................................... Quick Guide for Foreign Currency Remeasurement (Cash) ................................................. Quick Guide for Direct Debit Rejection Runs ........................................................................ Reports .................................................................................................................................. Payment Statistics - Customers ............................................................................................ Checkbook Register ..............................................................................................................
219 221 222 223 223 225 227 230 233 233 235 236 236 238 239 240 242 245 246 246 247
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6.1 6.1.1 6.1.2 6.1.3 6.1.4 6.1.5 6.1.6 6.1.7 6.1.8 6.1.9 6.1.9.1 6.1.9.2 6.1.9.3 6.1.9.4 6.1.10 6.1.10.1 6.1.10.2 6.1.10.3 6.1.11 6.1.11.1 6.1.11.2 6.1.11.3
Liquidity Management .....................................................................................

Business Background ............................................................................................................ Cash Position ........................................................................................................................ Bank Directory ...................................................................................................................... Bank Directory Upload for Six Interbank Clearing Switzerland .......................................... Bank Statements ................................................................................................................... Bank Transfers ...................................................................................................................... Bank Payment Advice .......................................................................................................... Check Lots and Check Numbers for Outgoing Checks ......................................................... Monitoring Payment Allocation Processing ........................................................................... Master Data ........................................................................................................................... Clearing Houses and Clearing House Accounts ................................................................... Bank Directory ...................................................................................................................... Banks and Bank Accounts .................................................................................................... ISR Payments - Switzerland .................................................................................................. Liquidity Forecasts ................................................................................................................ Liquidity Check ...................................................................................................................... Liquidity Forecast .................................................................................................................. Forecast Planning Item ......................................................................................................... Payment Formats .................................................................................................................. Electronic Bank Statement File Formats ............................................................................... Electronic Payment Formats ................................................................................................. Manual Payment Formats .....................................................................................................
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249 249 250 252 253 255 257 257 259 260 260 262 264 268 268 268 269 272 274 274 274 275
6.2 6.2.1 6.3 6.3.1 6.4 6.4.1 6.5 6.5.1 6.6 6.6.1 6.7 6.7.1 6.8 6.8.1 6.8.2 6.9 6.9.1 6.10 6.10.1 6.10.2 6.10.3 6.10.4 6.10.5 6.10.6
Master Data View .................................................................................................................. Quick Guide for Master Data (in Liquidity Management) ...................................................... Cash Position View ............................................................................................................... Cash Position Quick Guide ................................................................................................... File Management View .......................................................................................................... File Management Quick Guide .............................................................................................. Bank Statements View .......................................................................................................... Bank Statements Quick Guide .............................................................................................. Payment Monitor View .......................................................................................................... Payment Monitor Quick Guide .............................................................................................. Bank Payment Advices View ................................................................................................. Quick Guide for Bank Payment Advices ............................................................................... Liquidity Forecast View ......................................................................................................... Liquidity Forecasts Quick Guide ............................................................................................ Create and Refresh the Liquidity Forecast ............................................................................ Bank Transaction Status Notifications View .......................................................................... Quick Guide for Bank Transaction Status Notifications ......................................................... Reports .................................................................................................................................. Cash Position by Payment Method ....................................................................................... Cash Position by Transaction Source ................................................................................... Liquidity Forecast by Liquidity Level ...................................................................................... Liquidity Forecast by Payment Method ................................................................................. Liquidity Forecast by Transaction Currency .......................................................................... Liquidity Forecast by Transaction Source .............................................................................
276 276 281 281 282 282 285 285 287 287 293 293 294 294 295 297 297 298 298 301 303 306 308 310
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7.1 7.1.1 7.1.2 7.1.2.1 7.1.2.2 7.1.2.3 7.1.2.4 7.1.2.5 7.1.2.6 7.1.2.7 7.1.2.8 7.1.2.9 7.1.2.10 7.1.2.11 7.1.2.12 7.1.2.12 7.1.2.13 7.1.2.14 7.1.2.15
Tax Management .............................................................................................

Business Background ............................................................................................................ Tax Management Work Center ............................................................................................. Tax Returns ........................................................................................................................... Tax Register .......................................................................................................................... Tax Codes and Tax Events ................................................................................................... Example Scenario for Tax Returns ....................................................................................... Status of Tax Returns ............................................................................................................ Generic Tax Return As Tax Return Type .............................................................................. Tax Due Date of Tax Items ................................................................................................... Tax Reporting ........................................................................................................................ Subsequent Reporting of Tax Items ...................................................................................... Chamber Contribution Fee Calculation - Austria ................................................................... Import Of Services India ..................................................................................................... Challan Processing - India .................................................................................................... Purchase of Capital Goods - India ........................................................................................ ............................................................................................................................................... Prepayment of service tax - india .......................................................................................... prepayment of VAT - India .................................................................................................... Separate payment of CST and VAT - India ...........................................................................
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314 314 315 315 315 316 317 318 319 321 321 322 322 322 322 322 323 323 323
7.1.2.16 7.1.2.17 7.1.2.18 7.1.2.19 7.1.2.20 7.1.2.21 7.1.2.22 7.1.3 7.1.3.1 7.1.3.2 7.1.4 7.1.4.1 7.1.4.2 7.1.4.3 7.1.4.4 7.1.4.5 7.1.4.6 7.1.4.7 7.1.4.8 7.1.4.9 7.1.4.10 7.1.5 7.1.5.1 7.1.5.1.1 7.1.5.1.2 7.1.5.1.2.1 7.1.5.1.2.2 7.1.5.1.2.3 7.1.5.1.2.4 7.1.5.1.2.5 7.1.5.1.2.6 7.1.5.1.3 7.1.6 7.2 7.2.1 7.3 7.3.1 7.3.2 7.3.3 7.4 7.4.1 7.4.2 7.4.3 7.4.4 7.4.5 7.4.6
Service Tax Return - India ..................................................................................................... Tax ABATEMENT INDIA .................................................................................................. Withholding Tax - India .......................................................................................................... Import of goods - India .......................................................................................................... Stock Transfer - India ............................................................................................................ Unregistered Dealer Purchase - India ................................................................................... withholding tax 27Q - INDIA .................................................................................................. Tax Payments ....................................................................................................................... Example Scenario for Tax Payments .................................................................................... Status of Tax Payments ........................................................................................................ Tax Transactions and Tax Postings ...................................................................................... Example Scenario for Tax Entries ......................................................................................... Goods and Services Granted Free of Charge ....................................................................... Postings for Down Payments (Gross Method) ...................................................................... Intra-Community Movement .................................................................................................. Taxable Business Transactions Abroad ................................................................................ Calculation of tax abroad for B2C sales ................................................................................ Calculation of tax abroad for services ................................................................................... Different Tax Rates in Invoices ............................................................................................. Discounts: Cash Discounts and Bonuses ............................................................................. Exchange Rate Differences in Journal Entries ...................................................................... Tax Determination ................................................................................................................. Tax Determination ................................................................................................................. Tax Determination ................................................................................................................. Tax Determination Details ..................................................................................................... Master Data for Tax Determination ....................................................................................... Elements of Tax Determination ............................................................................................. Tax Exemption Certificate Processing .................................................................................. Tax Determination with Reverse Charge Mechanism ........................................................... Third-Party Order Processing Taxation ................................................................................. Tax on Goods and Services - Configuration Guide ............................................................... Tax Determination US ...................................................................................................... Access to Tax Data by Tax Authorities (GDPdU) .................................................................. Tax Authorities View .............................................................................................................. Quick Guide for Tax Authorities (Tax Management) ............................................................. Manual Tax Entries View ....................................................................................................... Quick Guide for Sales and Use Tax Entries (US) ................................................................. Quick Guide for VAT Entries ................................................................................................. Quick Guide for Withholding Tax Base Amount Entries (US) ............................................... Tax Returns View .................................................................................................................. Quick Guide for Sales and Use Tax Returns (US) ................................................................ Quick Guide for Withholding Tax Returns (US) ..................................................................... Quick Guide for VAT Returns ................................................................................................ Quick Guide for EC Sales Lists ............................................................................................. Quick Guide for GST Returns Australia ............................................................................. Quick Guide for Service Tax Returns - India .........................................................................
323 323 324 324 324 324 324 325 325 325 326 326 327 331 332 333 334 336 338 339 341 342 342 342 347 347 349 354 355 358 359 361 362 363 363 364 364 365 367 368 368 372 372 374 376 378
7.4.7 7.4.8 7.5 7.5.1 7.6 7.6.1 7.6.2 7.6.3 7.6.4 7.6.5 7.6.6 7.6.7 7.7 7.7.1 7.7.2 7.7.3 7.7.4 7.7.5
Quick Guide for Tax Adjustments India ............................................................................ Quick Guide for A-29 Reports Mexico ................................................................................ Tax Payments View ............................................................................................................... Quick Guide for Tax Payments ............................................................................................. Periodic Tasks ....................................................................................................................... Quick Guide for Sales and Use Tax Return Runs (US) ........................................................ Quick Guide for Withholding Tax Return Runs (US) ............................................................. Quick Guide for VAT Return Runs ........................................................................................ Quick Guide for EC Sales List Runs ..................................................................................... Quick Guide for GST Return runs Australia ....................................................................... Quick Guide for Service Tax Return Runs India ................................................................ Quick Guide for A-29 Report Runs Mexico ........................................................................ Reports .................................................................................................................................. Open VAT / Sales Tax Items ................................................................................................. Reported VAT / Sales Tax Items ........................................................................................... All VAT / Sales Tax Items ...................................................................................................... VAT / Sales Tax Calculation Overview .................................................................................. Withholding Tax Items ...........................................................................................................
379 380 382 382 388 388 390 391 393 395 396 398 399 399 400 401 402 403
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8.1 8.1.1 8.1.2 8.1.3 8.1.4 8.1.5 8.2 8.2.1 8.2.2 8.3 8.3.1 8.4 8.4.1 8.5 8.5.1 8.6 8.6.1 8.7 8.7.1 8.7.2 8.7.3 8.7.4 8.7.5 8.7.6 8.7.7
Travel and Expenses .......................................................................................

Business Background ............................................................................................................ Travel Advances .................................................................................................................... Review and Approval of Expense Reports ............................................................................ Rule of 183 - Austria .............................................................................................................. Rule of 5/5/15 - Austria .......................................................................................................... Nonmonetary Compensation - Germany ............................................................................... Expense Reports View .......................................................................................................... Expense Reports Quick Guide .............................................................................................. Create New Expense Report on Behalf ................................................................................ Expense Arrangements View ................................................................................................ Expense Arrangements Quick Guide .................................................................................... Expense Settlement Recalculation View ............................................................................... Quick Guide for Expense Settlement Recalculation Runs .................................................... Mileage Accumulation View .................................................................................................. Mileage Accumulation Quick Guide ...................................................................................... Day Accumulation View ......................................................................................................... Quick Guide for Day Accumulation - Austria ......................................................................... Reports .................................................................................................................................. Expense Reports By Cost Object .......................................................................................... Expense Reports Overview ................................................................................................ Expense Reports Receipts and Reimbursements .............................................................. Expense Reports - Taxable and Tax-Exempt Amounts for Payroll ....................................... Expense Reports Input VAT Refund .................................................................................. Expense Reports Itinerary .................................................................................................. Expense Reports - Overview of Trips to Communities in Austria .........................................
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405 405 407 408 408 409 410 410 412 413 413 414 414 415 415 416 416 417 417 418 420 421 422 423 424
8.7.8
Expense Reports - Taxable and Tax-Exempt Amounts for Austria ......................................
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1 Cash Flow Management

Overview
Cash flow management in the SAP Business ByDesign solution supports your organization in tracking and optimizing cash flow and keeping tight control of receivables, payables, payments, and liquidity. Automation speeds the collection of receivables, and analytical functions assess your cash position in real time. SAP Business ByDesign helps you optimize your liquidity, so you have sufficient financial resources available at all times.
Relevance
The Cash Flow Management business area is relevant if you need support for:

Payables/receivables Payment and liquidity management Tax management Travel and expenses
Benefits
Your core operations become fully integrated. Nearly every business process supported by the SAP Business ByDesign solution is connected to the financials area. Data flows automatically to financial activities such as payables and receivables processing and to accounting activities such as inventory accounting. This deep integration enables innovative functions for automating revenue recognition as well as for forecasting and analyzing profitability. You have better control over receivables, payables, payments, and liquidity. Liquidity management functions in SAP Business ByDesign let you optimize your working capital. You can assess cash positions in real time, identify critical issues, and generate new tasks for financial personnel responsible for addressing these issues. This results in shortened cash cycles. The software can also help you optimize your payment processes by taking advantage of early payment discounts that may reduce cash flow in the short term but ultimately save you money and contribute directly to the bottom line. You can collaborate more closely with your business partners along the value chain. With cash flow management software in SAP Business ByDesign, you can cut costs and react faster to business changes. Comprehensive integrated functionality such as support for payment reminders, payment advices, and electronic bank transfers or statements enables you to streamline and accelerate your financial operations. SAP Business ByDesign provides the holistic and flexible collaboration functionality you need to seamlessly connect and communicate with your business ecosystem for example, with banks, clearing houses, tax authorities, and lockbox providers. Note: If Cash Flow Management is not activated the master data of e.g. tax authorities, banks or clearing houses can also be entered in the Business Partner Data work center. Tasks become more automated and your employees performance accelerates. SAP Business ByDesign enables you to automate routine tasks whenever possible. For example, the software automatically supports clearing, dunning, and payment processes. When exceptions occur, SAP Business ByDesign proactively alerts the responsible employee and may offer suggestions or additional functions; for example, during the clearing process the software proactively provides potential matches of open items and incoming payments.
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SAP Business ByDesign FP3.5 Cash Flow Management
2 Business Background
2.1 Outgoing Payments
2.1.1 Outgoing Payments Overview
The outgoing payment process covers the retirement of liquid funds in the company. Outgoing payments decrease the cash and cash equivalents such as the cash balance or bank balance. An outgoing payment does not necessarily decrease the financial assets, this includes short-term payables and receivables. The clearing of a payable by an outgoing payment reduces the bank account balance, at the same time, the payable also expires but this does not change the financial assets. Examples of outgoing payments:

Payment of trade payables Purchase of physical products and services Payments of insurance contributions and fees Expense reimbursements Tax payments Repayment of loans Private withdrawals
The system differentiates between automatic outgoing payments and manual outgoing payments. You find the outgoing payments in the Payment Management work center in the Payment Monitor. The same payment methods are available for both types of outgoing payments:

Checks Bank transfers Direct debits You do not see the direct debit as a payment method in the outgoing payments since you do not need to initiate it yourself. Bill of exchange The bill of exchange payment method is not released for Germany. Petty cash transactions Petty cash transactions are not in the payment monitor, but instead, in the Petty Cash view. These transactions are used only with manual payments.
Prerequisites Configuration
You have made the following predefined settings in configuration:
SAP Business ByDesign FP3.5 Business Background
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Scoping Under Questions Cash Flow Management , you have made the basic settings for your payment processes.
Fine-Tuning In the Business Configuration work center in the task list included in the Fine-Tune phase, you have made the following settings relevant for cash flow management:
Bank Account and Payment Method Determination and Prioritization for Automatic Payments: You define which account you want to use for which payment methods. You also assign a priority to the bank accounts and payment methods that is used for automatic payments. You can set this priority either including or excluding payment amounts. Electronic Bank Statements: The import format used for electronic bank statements corresponds to the format of the file that is sent by the bank. The import format contains business transaction codes that determine the transaction type involved. The business transaction codes have to be assigned to internal system codes so that the transaction types can be displayed correctly in the form of the corresponding incoming and outgoing payments. SWIFT MT940 is the common import format in Germany. Suppliers Payment Terms. Suppliers Payment Terms: You define the payment terms that exist in your company, namely the payment targets and discount amounts. You can also add additional terms. Depending on the strategy you use, invoices are automatically included in the payment proposal list at either an earlier or later date, together with the complete or reduced invoice amount. Business Task Management for Processing Payments and Clearings: For incoming payments grouped by payment methods and for particular users, you can specify the payment amount from which an approval process is triggered. The approval request is then sent to the person responsible for making approvals. Payment Strategies You can define whether to always apply the available cash discounts or whether to generally use the maximum discount available. You can also define grace days that are taken into account during the payment run. Clearing Strategies: You specify the amount up to which the system tolerates differences between the invoice amount and actual payment amount collected by the supplier, and automatically clears the payables with the outgoing payments. If the difference amount is exceeded, the system issues a message (if you have made this setting in configuration). Furthermore, you define how a payment amount should be distributed when multiple open items need to be cleared (by due date, for example). If you create multiple clearing strategies, you need to define the strategy that you want to use as standard. You can also define strategies for specific companies, customers, or suppliers. This strategy is only used for externally-initiated outgoing payments (by direct debit from the supplier).
Master Data
Bank Data: You create your own bank data in the Liquidity Management work center under My Banks . Definition of Supplier Data and Payment Methods: Suppliers Suppliers . Choose New to create a You define this data in the Payables work center under new supplier or select one of the existing suppliers and choose Edit -> Financial Data to change the data of an existing supplier. In the payment data, you enter which companies use this supplier. With the account determination group, you determine which payables account is used during posting. You can also determine which payment method you want to use to pay supplier invoices. When you assign the company to a supplier, the subledger account is created
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automatically in the background. If you do not assign a company, the subledger account is automatically created with the first invoice or credit memo entered for this supplier.
Process Flow Automatic Outgoing Payments

You can have the system generate a payment proposal list, which contains the items to be paid and cleared according to the configured payment strategy. You can edit the proposed payments, such as remove items from them or change the payment amount. To make changes, navigate to the Payables work center to the Automatic Payments view. Select a payment and click Edit . Once you have checked the details, click Execute Payment . If your configuration settings require an approval to be made, the system triggers the approval process. You can reset payment proposals that have already been released and also reset generated payments, provided that they were not confirmed by the bank statement on the bank account. Items that you temporarily remove from the current payment proposal are taken into account in the next payment run, unless they are blocked for payment in the meantime. To create the payment medium, navigate to the Payment Management work center. There you can generate a payment file or print a check. You can also create the payment medium manually and indicate this accordingly in the system (Set As Manually Created). You can automate and schedule the creation of payment media with the payment media run. The process flow described for an outgoing payment relates to internally initiated automatic outgoing payments. However, outgoing payments can also be externally initiated, for example if they are triggered by your suppliers. The automatic debit procedure belongs to this type of payment.
Manual Outgoing Payments

You can create and edit internally-initiated manual outgoing payments. You do this in the Payables or Payment Management work centers: The Payment Management work center enables you to create outgoing payments using the payment monitor for supplier payables or other payments that you can post directly to a general ledger account. The Payables work center enables you to create manual outgoing payments using the supplier account monitor for supplier payables. 1. Navigate to the Payables work center and choose View . The Supplier Account Monitor screen appears. Suppliers Supplier Accounts . Select a supplier and choose
2. You can perform manual outgoing payment by selecting the required invoice and choosing Pay Manually By and the required payment method (for example, outgoing check, outgoing bank transfer). In the payment window displayed, you can also add or remove invoices, credit memos, or on account payments that have already been made. Enter the required data. Different data is required depending on the payment method (for example, bank transfer or check). Some relevant fields are described below: Currency The currency in which the payment should be made. The postings at all bank accounts are made in local currency. You can manage bank accounts in foreign currency and make payments in foreign currency. Foreign currency remeasurement takes place in the general ledger and cannot be seen on the individual bank accounts. For more information, see Quick Guide for Foreign Currency Remeasurement (Cash) [242], Quick Guide for Foreign Currency Remeasurement (Receivables) [166] and Quick Guide for Foreign Currency Remeasurement (Payables) [104].
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Debit Value Date The date on which the payment is debited. The value date can differ from the posting date of the payment. This entry is important as this is the posting date of the debit according to the bank statement, that is, posting to the bank clearing account takes place on this date. If you do not enter a date here, the system proposes today's date. If you enter bank statements, you must change this date to the appropriate posting date. Credit Value Date The credit value date represents the planned incoming payment at the recipient and is transferred to the bank. The bank transfers the payment to the recipient on this day. Company and Bank Details (from which the payment should be made) You change your own bank data in the Liquidity Management work center under Banks . Master Data My
Payee and Payee Bank Information You define the financial data in the master data of the supplier. Optionally, you can still enter the execution date and the transaction date for bank transfers. The execution date shows the bank when the outgoing payment should be executed. The transaction date represents the date on which the system creates the posting and sends the file to the bank.
3. Release the payment. If your configuration settings require an approval to be made, the approval process is initiated. You can also choose whether you want to print the document (for example, check) or whether the payment medium exists already and you only want to represent the posting in the system.
See Also
Open Items Payables [73] Determination of Payment Method / Reservation [14] Payment Allocation and Clearing [188] Bank Statements [253]
2.1.2 Determination of Payment Method / Reservation Overview

The payment method specifies how you execute payments, for example, by check or bank transfer. You create the payment method settings for internally initiated payments and your company's account information. You specify the payment method at the following locations:

In the customer or supplier master data In the open items
You also define the detailed information (for example, the account number and bank code for a bank transfer). The system accesses this data when creating the payment proposal list: If you have not specified a payment method in the master data, you can enter the payment method in the open items when processing the payment proposal list. The payment method specified in the open items, overrides the payment method specified in the master record. You can also specify a payment method in the open items that is not contained in the master record.
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If multiple payment methods are specified in the master data but none in the open items, the system examines in the sequence in which the payment methods were entered, whether the payment methods specified for the payment run can be performed. The system attempts to determine the optimal (most favorable and quickest) payment method. For disbursements in foreign currencies, the system checks whether the payment methods allow disbursements to suppliers, customers, or banks abroad. For collections in foreign currencies, the payment method for foreign currency payments must be allowed.
Prerequisites Configuration Settings

Fine-Tuning Configuration settings are normally performed by a key user. If you do not have the required authorization, contact your key user. Determination of Payment Method / Reservation is activated in your solution configuration. To find this activity, go to the Business Configuration work center and choose the Implementation Projects view. Select your implementation project and click Open Activity List . Select the Fine-Tune phase and select the following activities from the activity list.
Payment methods of the country under Global Settings for Payments: Definitions that are necessary countryspecific for a payment method. This is necessary for all payment methods that are used in a country by your company. For example, if you have companies in Germany, France, and the United States, you define the payment method Check separately for each country. Payment methods of the company under Bank Account and Payment Method Determination and Prioritization
for Automatic Payments Prioritize Bank Accounts and Payment Method based on Amount : Define the payment methods used for each company with maximum and minimum amounts.
Supplier Master Data

If you have agreed a payment method with a business partner, for example, you can specify this directly in the master record. You can also specify multiple payment methods in the master record from which the system selects one payment method during the payment run. It does this according to the payment method specified in the document (for example, invoice or credit memo) or one of the payment methods specified in configuration during bank prioritization. To specify payment methods in the master record, choose
Edit
Payables
Suppliers
, select a supplier and click
. Then choose Financial Data Payment Data . Under Payment Methods, you can select all payment methods that you have defined in configuration for your company.
Customer Master Data

You define a payment method in the customer master record if you want to execute internally initiated payments. This concerns, for example, an agreement with the customer to debit customer invoices directly from the customer's account by direct debit with mandate. If you define payment methods in the customer master data, these payments are also included in the payment proposal list. Choose Receivables Customers and click Go . Choose a customer, then click Edit and choose Financial
Data Payment Data . Under Payment Methods, you can select all payment methods that you have defined in configuration for your company.
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Features Payment Methods in Open Items

You can specify the payment method for each disbursement during invoice entry. This payment method then appears automatically in the payment proposal list. However, if no payment method was specified, the standard payment method from the master data appears in the payment proposal list. You can change this payment method when processing the payment proposal list with any other payment method that is defined in the master record. To change the payment method in open items, proceed as follows: 1. In the Payables work center, choose Automatic Payments. This view displays the Payment Proposal List, that is, all due open items. 2. Select the payment for which you want to change or enter the payment method and choose Edit . The Payment Proposal:<Payment Proposal Number> screen is displayed. 3. Enter a payment method under Payment Method or change the existing payment method. If a payment method is entered explicitly in the item to be paid, this entry takes precedence over the entries in the master record. 4. Save your entries.
Payment Reservation
To execute the payment, there must be an Allocation of Liquidity in case the company is in a precarious financial situation. When allocating the liquidity, the system checks whether there is sufficient liquidity for the disbursement at the bank and reserves the relevant amount for this payment. For important payments, you can decide that there should be no allocation of liquidity. In this case, the payment is made regardless of the availability of liquid funds.
2.1.3 Internally Initiated Automatic Outgoing Payments Overview

In your role as an accounts payable accountant, you require functions to process national and international outgoing payment transactions made with suppliers and other creditors. The system makes these functions available in the Payment Management and Payables work centers. When you create a payment, you can specify the payment method and other details, such as the house bank account from which to pay, the bank data of the supplier/customer, or the bank processing date. You can also use the Payment Monitor in the Payment Management work center to monitor all payment transactions regardless of status, payment medium, or payee. As the accounts payable accountant for your company, you initiate the automatic creation and editing of outgoing payments in the Payables work center. Here you create a payment run, which is used to generate a payment proposal list based on the payment strategy configured and the selection criteria chosen. Possible selection criteria are:

Company Date of the next payment run; if required, taking account of your configuration settings for the payment strategy Specify this date if you want to perform the payment run once only. If you schedule the payment run to be performed on a recurring basis, the system determines the appropriate date. Suppliers and other creditors Currency Bank processing date
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Specify the requested payment date (for bank transfers and direct debits only). Depending on working days, the bank may make the payment later. Leave this field empty if you want to schedule the run periodically.
Posting date The default posting date is the execution date of the run. Leave this field empty if you want to schedule the run periodically.
In your role as accounts payable accountant, you can edit the payment proposals and then release them for payment creation. Note that the system replaces all existing payment proposal lists each time you generate a new list manually for the same or an overlapping selection of suppliers. You can execute the payment run manually often as you want. The system supports the following forms of payment:

Outgoing check, with the option of including payment advices Outgoing wire transfer Outgoing bank transfer, with the option of including payment advices Processing bill of exchange payables is not released for Germany.
Prerequisites
You have made the following predefined settings in configuration and for master data: Configuration Scoping Under Questions processes. Fine-Tuning You have selected the following activities in the Business Configuration work center under Tuning

Cash Flow Management , you have made the basic settings for your outgoing payment
Activity List
Fine-
Business Task Management for Bank Statement Processing (optional) Business Task Management for Payment Processing (optional) Business Task Management for Payment and Liquidity Outgoing Checks (mandatory) Outgoing Wire Transfers (mandatory) Outgoing Bank Transfers (mandatory) Outgoing Payment Advices (mandatory) Bank Groups (mandatory) Global Settings for Payment (optional) Basic Settings for Liquidity Management (mandatory) Payment Block Reasons (optional) Import Formats for Bank Statements (mandatory) Payment Approvals (optional)
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Release Bank Statements (mandatory) Liquidity Forecast Profiles (optional) Clearing Strategy (mandatory) Payment Strategy (mandatory)
Master Data

You have defined a country in which your company is registered. You have set up the bank details of your bank accounts for your suppliers' and creditors' accounts. You have made a payment agreement with your suppliers and creditors. You have defined the supported payment formats for your bank. You have ensured that your bank accounts are active and have the desired payment methods assigned to them.
Process Flow
The following section explains the steps that need to be performed to use the automatic payment process and to process the relevant open items. The process flow describes the individual steps that are specific to an automated outgoing payment by bank transfer. The process flow is the same for outgoing payments using other payment methods. Creating the Invoice 1. Your company's purchasing department has requested services or ordered goods from a supplier, for example, with a purchase order from the Purchase Requests and Orders work center. 2. The supplier from which your company procures the ordered goods or requested services issues a supplier invoice and sends it to your company. The supplier invoice contains a reference to preceding documents, for example, to an underlying purchase order and an underlying goods receipt and external services document. In addition, the system provides functions for the payment of supplier invoices without preceding documents. In this case, you can enter additional invoices or credit memos for each supplier account in the supplier account monitor. 3. In your role as accounts payable accountant, you want to clear the open items of the supplier invoice. For more information, see:

Purchase Request Processing Purchase Order Processing Processing Goods and Services Receipts Supplier Invoice Types Processing Supplier Invoices Without Reference Processing Supplier Invoices with Reference
Triggering the Automated Payment Process 1. Navigate to the Payables work center and choose Periodic Tasks Payment Runs .
2. Choose New then Payment Run. Define for which supplier(s) and with which criteria you want to schedule a payment run to clear open items. You create a new payment run based on these criteria. Possible selection criteria are: Posting date
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Bank processing date Include on account payments Company Supplier from / to ID You can define a value range and thus select multiple suppliers for one payment run.
If you do not select a supplier, the system selects all the suppliers entered in the system for the payment run.

Currency Next payment run date
3. Activate the payment run and choose Schedule. 4. The Schedule Job screen appears. Choose when the payment run should be executed. You have the following options: Start Immediately The system starts the payment run directly after you have saved your entries.
Single Run The system starts the payment run on the date and at the time you have specified. Run After Job The system starts the payment run depending on another payment run. That is, the payment run starts directly after completion of the payment run that you selected from the selection list.
The system starts the payment run and generates a payment proposal list using the values defined in configuration. Note that the time it takes for the payment run to execute varies depending on the number of items to be paid. 5. In the Payables work center in the Automatic Payments view, display the payment proposals that have been created with the suppliers to be paid and your company's other creditors to which payables exist. If the displayed payment proposals are not up-to-date or cannot be edited manually, the system deletes these payment proposals. Therefore, you can no longer view these proposals in the Automatic Payments view. For more information, see:
Open Items Payables [73]
Automatic Creation and Release of the Payment Medium 1. Go to the Payment Management work center and navigate to the Payment Monitor view to display the edited payment and its status. 2. Within the Payment Management work center, go to the Periodic Tasks view and choose Payment Media Runs. 3. Define for which payments and with which criteria, you want to schedule a payment media run. Possible selection criteria are: Payment method

Payment media Payment format
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Business partner (for example, supplier or customer) You can define a value range and then select multiple business partners or a payment processing date for one payment media run. If you do not select a business partner or payment processing date, the system selects all business partners entered in the system regardless of possible payment processing dates for the payment media run.
Company Currency
4. Start the predefined payment media run manually if required, or schedule the run periodically. To do this, go to the Job Scheduler screen and choose Activate and Schedule. You can activate a payment media run directly on the Job Scheduler screen or from the payment media run overview in the Periodic Tasks view. You can use the payment media run for the standard payment methods bank transfer and check. The system generates the following tasks depending on the selected payment method: If you have selected the standard payment method bank transfer, the system generates a file for a German domestic bank transfer, for example, in DTAUSDE0 format. You can transfer this file to your bank using specific bank software.
If you have selected the standard payment method check, the system generates a print file. You can print this print file of the check and send it to your suppliers to clear your payables. You can also print checks directly in the Payment Management work center within the Payment Monitor view. At present, the system only supports print files for checks; processing bank checks is not possible. For more information, see Electronic Submission of Outgoing Payment Advices [65].
5. Download the file from the system and save a local copy. You need the local copy to transfer the outbound file to your bank. The file is transferred using specific bank software that you should have received from your bank. 6. Transmit the local outbound file online to your bank using the required bank software. Editing the Bank Statement 1. Within the Liquidity Management work center, navigate to the Bank Statements view. 2. Enter your bank statement data in the system. To ensure a timely update of your bank balances, we recommend saving the bank statement as a local bank statement file on the day after the online transfer. Depending on the standard processes in your company, you have the following options to enter bank statement data in your system: Electronic Entry for Bank Statement Data Submitted Online Once you have uploaded the locally-saved bank statement file, the system transfers the file data automatically.
Manual Entry for Bank Statement Data Submitted on Paper Enter the bank statement items from the local copy manually in your system, taking account of references to preceding documents (for example, invoices).
3. If the bank statement was released, the relevant payment is indicated as confirmed. For more information, see Bank Statements [253].
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2.1.4 Externally Initiated Outgoing Payments Overview

As accounts payable accountant it is your task to process your company's national and international outgoing payment transactions made with suppliers and other creditors. This also includes clearing payments that your suppliers have collected from your company. The system makes all required functions available in the Payables, Payment Management, and Liquidity Management work centers. The system supports the following standard payment methods:

Direct debits Credit card collections Bill of exchange payables Processing bill of exchange payables is not released for Germany.

Scoping Configuration settings are normally performed by a key user. If you do not have the required authorization, contact your key user. Outgoing payment processes are activated in your solution configuration. To do this, go to the Business Configuration work center and choose the Implementation Projects view. Select your implementation project and click Edit Project Scope . In the Scoping step of the project, ensure that Payables and Receivables Processing is selected within Cash Flow Management. In the Questions step, expand the Cash Flow Management scoping element, select Payables and Receivables Processing and answer the questions.
Fine-Tuning You must have performed the following fine-tune activities in the Business Configuration work center: choose the Implementation Projects view, select your implementation project and click Open Activity List . Select the Fine-Tune phase, choose Cash Flow Management and perform the following activities in the activity list:

Business Task Management for Processing of Payments and Clearings (optional) Business Task Management for Bank Statement Processing (optional) Business Task Management for Payment Processing (optional) Bank Groups (mandatory) Global Settings for Liquidity Management (mandatory) Import Formats for Bank Statements (mandatory)
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Release Bank Statements (mandatory) Clearing Strategy (mandatory)
Master Data

You have defined a country in which your company is registered. You have set up your bank accounts.
Process Flow
The following section explains the precautionary and processing steps that need to be performed to clear open items from payments collected by suppliers. The process flow describes the individual steps that are specific to clearing an outgoing payment by direct debit. The process flow is the same for outgoing payments using other payment methods and payment procedures. Creating the Invoice and Collecting the Direct Debit Payment 1. Your company's purchasing department has requested services or ordered goods from a supplier, for example, with a purchase order from the Purchase Requests and Orders work center. 2. The supplier of the ordered goods or requested services issues an invoice and sends it to your company. The invoice contains a reference to preceding documents, for example, to an underlying purchase order and an underlying goods receipt and external services document. In addition, the system provides functions for the payment of invoices without preceding documents. 3. To clear the open items from the invoice, your supplier collects the outstanding amount for the ordered goods or requested services by direct debit from your company's bank. Managing the Direct Debit Payment in the Bank Statement 1. In your role as accounts payable accountant, you receive a bank statement from your company's bank. An item of the bank statement refers to the payment made to your suppliers by direct debit. 2. You want to enter and manage the direct debit payment in the form of a bank statement item in your system. 3. Navigate to the Liquidity Management work center and choose the Bank Statements view. Here you can view all of your company's bank statements that were manually entered or automatically generated by the system. 4. To create a bank statement that represents the direct debit payment as an item, click New Statement . and choose Bank
5. On the following Bank Statement: <Bank Statement Number> screen in the Enter General Data step, enter the general data for the direct debit payment. The system requires this data for later payment clearing. You do not have to manually make all entries for each payment separately. Depending on your settings, the system automatically proposes the following values: Statement ID The system assigns sequential bank statement IDs if nothing else is planned in configuration.
Opening Balance The system derives the opening balance on your company's bank account from the balance of the previous bank statement.
You need to manually enter the following values of the bank statement item that refer to the payment made to your suppliers by direct debit. Bank Name
Closing Balance
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Entering the closing balance on your company's bank account is necessary to define the amount that was paid by direct debit. The system manages the difference from the opening balance and the closing balance on your company's bank account as the payment. 6. Once you have entered the data, go to item selection (step Select Items) by choosing Next . The system displays an overview of all internally initiated transactions that were already entered for the selected bank statement. The system does not show any transactions for externally initiated outgoing payments here. You have to enter these in your system first as separate transactions. 7. Enter the direct debit payment as a new transaction. You want to manage this payment as an item of the newly created bank statement. Make sure that you enter all required values. This includes data on the following tab pages: 8. Choose Next to go to the step Create and Edit Items, and enter the required values. Choose the Item Details action to enter the following additional data: Transaction Data You use the specified transaction data to manage the transaction type, original currency amount, business partner (supplier), document ID, value date, and account owner, for example.
References
You use the entered references to manage the internal invoice reference ID, document date, or amount to be paid, for example. This means that you define to which invoice(s), which already exist for your supplier in the system, the direct debit payment refers. We recommend entering references to the edited invoices that were paid by direct debit. The system automatically transfers these references for later payment clearing. You can enter a cash discount and deductions for other reasons within later payment clearing.
Note to Payee (optional) You use the specified note to payee to manage additional information about the direct debit payment that you are editing. This information is used to uniquely assign the payment to the items in your accounts payable accounting system.
9. Once you have entered the data, you can check your bank statement for which you have entered the direct debit payment as a new transaction. You can then finish processing and release the bank statement. To do this, during the Check, choose the actions Check, Save Draft, Release, and in the confirmation step the action Close. Based on the entries that you have made on the transaction type and supplier, the system recognizes the transaction as an outgoing payment that is managed as a bank statement item. The system forwards this information to the Payables work center where the bank statement is processed further. Clearing the Direct Debit Payment 1. Go to the Payables work center to trigger payment clearing for the items of the edited bank statement. If you have specified references when you entered your bank statement on the edited invoices that were paid by direct debit, the system automatically performs payment clearing. Manual processing is therefore not required. Therefore, we recommend that you specify references directly when you enter your bank statements. The higher degree of automation increases the efficiency of your accounting processes and reduces the costs that arise from the processing effort.
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2. If manual triggering of payment clearing is required, the system offers you the following functions depending on the processes in your company and your configuration settings: Manual Payment Clearing This process of payment clearing refers to a selected payment. You use this process in the following cases: No references were entered in the system.

There is an overpayment. A different payer was entered.
Supplier Account Maintenance This process of payment clearing refers to all payments that exist in the system for a selected supplier.
3. Depending on the selected process of payment clearing, choose one of the alternatives described in the following sections. Perform the process steps listed. Manual Payment Clearing 1. Navigate within the Payables work center to the Payment Clearing view and display the items that were entered in your system. 2. Select the item of the direct debit payment that you want to clear and choose Edit . Items that you want to clear must have the status Open or Partially Cleared.
On the following Manual Payment Clearing: <Payment Clearing Number> screen, the system displays the details on the selected item on the Manual Clearing tab page. This includes the payment amount, not assigned payment amount, taken cash discount, other deductions, or payment type. Furthermore, the system displays a list of all the open items that you can use for payment clearing. Items proposed by the system that are based on amount, references, or payment clearing, are automatically preselected in the open item list. You can override this preselection if required. 3. On the Manual Clearing tab page in the Open Items list, select the invoice(s) that you want to clear with the direct debit payment. You can clear an invoice completely or partially with a payment: Partial Clearing of an Invoice The invoice amount is greater than the amount that was actually collected by direct debit. If you clear the invoice with the payment, there is a residual item.
Clearing Multiple Invoices The individual invoice amounts are smaller than the amount that was actually collected by direct debit. If you clear multiple invoices with the payment, the system combines as many invoices until the invoice amounts are similar to the actual payment amount.
Actions
4. Once you have completed processing, the prerequisites for payment clearing have been met. Choose
Clear to trigger the process of payment clearing for the selected invoice(s).
Depending on your configuration settings, you can enter a cash discount or a deduction for another reason (for example, defect or delayed delivery) to your invoice here. An additional approval may then be required by a manager of the organizational unit. Supplier Account Maintenance 1. Navigate within the Payables work center to the Suppliers view and choose the Supplier Accounts screen. 2. In the displayed worklist, select the supplier account from which the direct debit payment was initiated. To do this, choose Display Account.
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On the following Supplier Account Monitor: <Supplier Name and Number> screen on the Trade Payables tab page, the system displays the detailed view of the selected supplier account. 3. Start account maintenance and select the invoice(s) that you want to clear with the direct debit payment. Then choose Clear Manually . You can clear an invoice completely or partially with a payment: Partial Clearing of an Invoice The invoice amount is greater than the amount that was actually collected by direct debit. If you clear the invoice with the payment, there is a residual item.
Clearing Multiple Invoices The individual invoice amounts are smaller than the amount that was actually collected by direct debit. If you clear multiple invoices with the payment, the system combines as many invoices until the invoice amounts are similar to the actual payment amount. You can view the items of the selected invoice using Open Item Details . The system displays all items regardless of their status. You can select a cleared item and go directly to the related payment clearing process using View Clearing Document. This could be necessary, for example, to view the items or to cancel payment clearing.
4. The New Manual Clearing screen appears. On the Manual Clearing tab page, select the direct debit payment with which you want to clear previously selected invoice(s). Depending on your configuration settings, you can enter a cash discount or a deduction for another reason (for example, defect or delayed delivery) to your payment here. An additional approval may then be required by a manager of the organizational unit. During the manual payment clearing process described above, you can enter a cash discount or other deduction for an invoice but not for a payment. 5. Once you have made the selection, choose Clear . The system automatically closes payment clearing using the selected items.
See Also
Outgoing Payments [11] Incoming Payments [31]
2.1.5 Internally Initiated Manual Outgoing Payments Overview

In your role as an accounts payable accountant, you require functions to process national and international outgoing payment transactions made with suppliers and other creditors. The system makes these functions available in several work centers. All special features can be defined, such as settings for the payment forms and payment methods, payment formats or data media. The system also enables you to monitor payment transactions with a complete record of the processing status of all relevant payment processes. You initiate the manual creation and editing of outgoing payments for your company in the Payables work center or directly in the Payment Management work center.
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In the Payables work center, you can use the supplier account display to create individual payments. Once a payment has been created, you can go to the Payment Management work center to view your companys accounts payable. The system supports the following forms of payments:

Outgoing check, with the option of including payment advices Outgoing cash payment For more information, see Quick Guide for Petty Cash [217]. Outgoing wire transfer Outgoing credit card payment For more information, see Credit Card Chargebacks [190]. Outgoing refund of incoming payment For more information, see Refund of Payments Received [144]. Outgoing bank transfer, with the option of including payment advices Bill of exchange payable Processing bill of exchange payables is not released for Germany.
Prerequisites
You have made the following predefined settings in configuration and for master data: Configuration Scoping Under Questions processes. Fine-Tuning You have selected the following activities in the Business Configuration work center under Tuning

Cash Flow Management , you have made the basic settings for your outgoing payment
Activity List
Fine-
Business Task Management for Bank Statement Processing (optional) Business Task Management for Credit Card Processing (optional) Business Task Management for Payment Processing (optional) Business Task Management for Payment and Liquidity Outgoing Checks (mandatory) Outgoing Wire Transfers (mandatory) Outgoing Bank Transfers (mandatory) Outgoing Payment Advices (mandatory) Bank Groups (mandatory) Global Settings for Payment (optional) Basic Settings for Liquidity Management (mandatory) Payment Block Reasons (optional) Import Formats for Bank Statements (mandatory) Payment Approvals (optional)
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Release Bank Statements (mandatory) Credit Card Types (optional) Liquidity Forecast Profiles (optional) Clearing Strategy (mandatory) Payment Strategy (mandatory) Payment Allocation (optional)
Master Data

You have defined a country in which your company is registered. You have set up the bank details of your bank accounts for your suppliers' and creditors' accounts. You have made a payment agreement with your suppliers and creditors and have made other related settings. You have defined the supported payment formats for your bank. You have made sure that your bank accounts are active for outgoing payments and all related settings have been made. This includes setting up the payment procedure and liquidity check, and releasing the required currencies.
Process Flow
The following section explains the precautionary and processing steps that need to be performed to use the manual payment process and to process the relevant open items manually. The process flow describes the individual steps that are specific to a manual outgoing payment by bank transfer. The process flow is the same for outgoing payments using other payment forms and payment methods. Creating the Invoice 1. Your company's purchasing department has requested services or ordered goods from a supplier, for example, with a purchase order from the Purchase Requests and Orders work center. 2. The supplier from which your company procures the ordered goods or requested services issues a supplier invoice and sends it to your company. The supplier invoice contains a reference to preceding documents, for example, to an underlying purchase order and an underlying goods receipt and external services document. In addition, the system provides functions for the payment of supplier invoices without preceding documents. In this case, you can enter additional invoices or credit memos for each supplier account in the supplier account monitor. To do this, choose New Invoice/Credit Memo in the supplier account. 3. In your role as accounts payable accountant, you want to clear the open items of the supplier invoice. For more information, see:

Purchase Request Processing Purchase Order Processing Processing Goods and Services Receipts Supplier Invoice Types Processing Supplier Invoices Without Reference Processing Supplier Invoices with Reference
Manually Triggering the Payment Process 1. Navigate to the Payables work center and choose suppliers' accounts to which payables exist. Suppliers Supplier Accounts to display your company's
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2. Select the supplier account you want to use to pay the invoice and choose View Account. On the Supplier Account Monitor screen, the system displays general data on the selected supplier account and, on the Trade Payables tab page, payables that your company has at this supplier. The system automatically displays the Trade Payables tab by default.
3. To trigger the payment of an invoice manually, select it and choose Actions Pay Manually By . Use the input help to select the payment method that you want to use to clear the invoice manually. You can choose from the following payment methods: Outgoing check

Outgoing bank transfer Outgoing wire transfer If you have made a payment agreement with your suppliers, the system provides you with only the payment methods defined in this payment agreement. If you have not made a payment agreement, the input help is restricted to Incoming Check and Other Payment Methods. You can also trigger payments directly in the Payment Management work center in the Payment Monitor view. To do this, choose Pay Manually By, specify the creditor you want to pay, and select the open items to be paid. The system opens the corresponding follow-on screen depending on the payment method selected:
For more information, see: Open Items Payables [73]

Determination of Payment Method / Reservation [14] Supplier Account Monitor [74]
4. On the New Outgoing Bank Transfer screen, enter the data needed to pay the invoice. Note that the name of the screen changes depending on the payment method you have selected.
If required, you can define an additional cash discount or deduction for the edited payment. Depending on your configuration settings, the system automatically adds a payment proposal for payment optimization using the data you entered (for example, best payment method or bank details). For this, choose Complete Bank Data. You no longer need to enter the missing data manually. For the payment proposal, you can preassign the payment amount and payment method as selection criteria. The system provides you with additional criteria if you select View All. Note that the actual payment amount according to configuration can differ from the original invoice amount, for example, due to a cash discount or another type of deduction. At this point, the system displays both the invoice that you want to pay and all the other open items from the corresponding supplier. If required, you can select at this stage any additional open items to be paid. You can influence how your outgoing payment is used and then view it on the screen. If the Reference to Items radio button is selected, the open items that are to be cleared with the payment are explicitly selected for payment in the system. If the Direct Posting to G/L Account radio button is selected, the payment does not refer to a selection of open items. Instead, the posting is made directly to the corresponding G/L account. This means that you can specify the accounts to which the postings are made.
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The Direct Posting to G/L Account radio button is also provided in the Payment Management and Liquidity Management work centers. Both work centers incorporate the radio button, which you can use for specific payments, such as donations or cash discounts. 5. Once you have entered the data, choose Release. The system issues an appropriate message with which you can see the status change of the payment. The message also shows you whether the payment was triggered directly or whether according to configuration, approval is required by a manager of the organizational unit. For the approval check, you can preassign a maximum limit for the payment amount as criterion. Further processing of the payment is not possible until the responsible manager has approved the payment of this invoice. Manual Creation and Release of the Payment Medium 1. Go to the Payment Management work center and navigate to the Payment Monitor view. 2. Select the payment for which you want to create the payment medium. To speed up the search process, we recommend that you use the enhanced search function. To do this, choose Advanced and enter your search criteria (for example, payment method, document ID, or name of the payee). Depending on the payment method for the payment you have selected, you can perform different actions: The system provides the following Actions for Bank Transactions, for example: Create Payment File, Set As Manually Created, and Set to Not Transferred. 3. Create the actual payment medium for the payment to be processed using bank transfer. To do this, choose Actions for Bank Transactions Create Payment File .
4. Depending on the payment method that is intended for the payment of the invoice, the system offers different options to edit the data further and to provide your bank with the data for the actual cash transfer. The system generates the following tasks within the payment media creation run for the standard payment methods bank transfer and check: If you have selected the standard payment method bank transfer, the system generates a file for a German domestic bank transfer, for example, in DTAUSDE0 format. You can transfer this file to your bank using specific bank software.
If you have selected the standard payment method check, the system generates a print file. You can print this print file of the check and send it to your suppliers to clear your payables.
5. Download the file from the system and save a local copy. You need the local copy to transfer the outbound file to your bank. The file is transferred using specific bank software that you should have received from your bank. 6. Transmit the local outbound file online to your bank using the required bank software. Editing the Bank Statement 1. Within the Liquidity Management work center, navigate to the Bank Statements view. 2. Enter your bank statement data in the system. To ensure a timely update of your bank balances, we recommend saving the bank statement as a local bank statement file on the day after the online transfer. Depending on the standard processes in your company, you have the following options to enter bank statement data in your system:
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Manual Entry for Bank Statement Data Submitted on Paper Enter the bank statement items from the local copy manually in your system, taking account of references to preceding documents (for example, invoices). Electronic Entry for Bank Statement Data Submitted Online Once you have uploaded the locally-saved bank statement file, the system transfers the file data automatically.
See Also
Outgoing Payments [11] Incoming Payments [31]
2.1.6 Creating User-Defined Payment File Formats Overview

SAP Business ByDesign supports the most popular file formats for electronic bank transfer for the countries for which a fully localized solution is available. However, it may be that your bank uses its own custom payment formats or a variant of one of the popular formats. It is now possible to create user-defined payment file formats, which are as per your bank specification, using the Outgoing Bank Transfers fine tune activity. To create a payment file format, you should first create a payment file structure in Payment File Structures. You then assign this payment file structure to a payment medium format. To find this activity, go to the Business Configuration work center and choose the Implementation Projects view. Select your implementation project and click Open Activity List . Select the Fine-Tune phase, then select the Outgoing Bank Transfers activity from the activity list. You can create user-defined payment file formats that are flat files using this activity; it is not possible to create XML-based formats.
Prerequisites
A suitable payment medium format exists. If one does not exist, you should create a payment medium format. For more information, see Edit Payment Medium Formats under Outgoing Bank Transfers
Process Flow
1. In Outgoing Bank Transfers specification for the format. Payment File Structures , create a payment file structure according to the bank
1. Enter general data such as the payment file structure ID. 2. Define the records to be used within the structure. 3. Define the fields used within each of these records. For more information, see Create a Payment File Structure 2. You must then assign this payment file structure to a payment medium format.
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In Assign a Payment File Structure to a Payment Medium Format, map the payment file structure to an existing payment medium format. For more information, see Assign a Payment File Structure to a Payment Medium Format 3. You should then select the new payment file format in My Bank. If, in the previous step, you assigned the payment file structure to a file format already in use within My Banks, you can skip this step. 1. Go to Liquidity Management My Banks .
2. Select the relevant bank and click Edit . 3. Under Payment Formats , add the payment file format, which you have created. 4. You can then create outgoing bank transfers using this payment file format. 1. Go to Payment Management Outgoing Bank Transfer. Payment Monitor , create a new payment by clicking New Payment by
2. Enter the required details for the bank transfer such as payee, payee's bank account number, and payment amount. For more information, see Create an Outgoing Bank Transfer task in the Payment Monitor Quick Guide [194]Payment Monitor Quick Guide [287]. After you release an outgoing bank transfer, the payment using your payment file format now appears under Payment Monitor. 5. You can then create a payment file using this payment file format. 1. In the Payment Monitor, choose the outgoing bank transfer, which you released in the previous step. It should have the status Ready for Transfer. 2. Click Actions for Bank Transactions and choose Create Payment File.
3. To download the payment file locally, you should do the following: Go to the Outbound Files subview under File Management view, select the new payment file, and click Edit . From Outgoing File, go to the Attachments and select the payment file. To download the file from the browser window to your computer, click Download . If the bank rejects the payment file, a potential reason is errors in the layout or content of file. If this is so, you should recheck the correctness of the payment file structure against the bank specification, and also make use of any feedback from the bank.
2.2 Incoming Payments

2.2.1 Incoming Payments Overview
The incoming payment process covers the acquisition of liquid funds in the company. Thus an incoming payment increases the cash and cash equivalents such as the cash balance or bank balance. An incoming payment does not necessarily increase the financial assets, this includes short-term payables and receivables. The clearing of a receivable by an incoming payment increases the bank account balance, however at the same time, the receivable expires but this does not change the financial assets. Examples of incoming payments:
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Payment of trade receivables by customers Sales of physical products and services Interest and repayment from loans (as lender) Tax refunds Private capital contribution Cash sale
The system differentiates between automatic incoming payments and manual incoming payments. The same payment methods are available for both types of incoming payments:
Check Incoming checks are displayed in the Payment Management work center in the Payment Monitor view. Direct debits Credit cards Bank transfers Petty cash transactions Incoming cash payments are displayed in the Payment Management work center in the Petty Cash view. Only manual payments are relevant. Bills of exchange The bill of exchange payment method is not used in Germany.
Prerequisites Configuration
You have made the following predefined settings in configuration: Scoping Under Questions Cash Flow Management , you have made the basic settings for your payment processes.
Electronic Bank Statements: The import format used for electronic bank statements corresponds to the format of the file that is sent by the bank. The import format contains business transaction codes that determine the transaction type involved. The business transaction codes have to be assigned to internal system codes so that the transaction types can be displayed correctly in the form of the corresponding incoming and outgoing payments. SWIFT MT940 is the common import format in Germany. Customers - payment terms: You define the payment terms that exist in your company, namely the payment targets and discount amounts. You can also add additional terms. Business Task Management for Payment and Liquidity: For incoming payments grouped by payment methods and for particular users, you can specify the payment amount from which an approval process is triggered. The approval request is then sent to the person responsible for making approvals. Clearing Strategies:
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You specify up to which amount the system tolerates differences between the invoice amount and the actual payment amount by the customer and automatically clears the receivables with the received payments. If the difference amount is exceeded, the system issues a message (if you have made this setting in configuration). Furthermore, you define how a payment amount should be distributed when multiple open items need to be cleared (by due date, for example). If you create multiple clearing strategies, you need to define the strategy that you want to use as standard. You can also define strategies for specific companies, customers, or suppliers.
Dunning Strategy: You define the dunning strategy that you use. This specifies which business transactions (for example, invoice) are dunned in which cycles and as of which dunning amount a dunning notice or reminder is created. The system creates a dunning proposal list according to your settings at the end of the respective time limit. If you create multiple dunning strategies, you need to define the strategy that you want to use as standard. You can also define strategies for specific companies or customers.
Master Data
Bank Data: You create your own bank data in the Liquidity Management work center under Master Data -> My Banks. Definition of Customer Data and Payment Methods: To do this, go to the Receivables work center, choose Customers -> Customers. Choose New to create a new customer or select one of the existing customers and choose Edit -> Financial Data to change the data of an existing customer.
Process Flow
An invoice is usually issued before there is an incoming payment. This outstanding receivable (open items) to customers should be cleared by an incoming payment. Depending on the payment method agreed with the customer, the data is entered manually (check), executed automatically (direct debit, credit card) by a payment run, or transferred to the system by importing the bank data. A cash payment can also be made. If the customer has decided on payment check, you enter the data manually in the Payment Management work center in the Payment Monitor view or in the Receivables work center in the Customer Account Monitor view. If a direct debit or payment by credit card is planned for the customer, the payment can be executed automatically using a payment run. If a credit memo was made by bank transfer to the bank account, it is an externally initiated incoming payment that is automatically transferred to the system by importing the bank statements or by manually entering them. You can differentiate between externally and internally initiated payments for both automatic and manual incoming payments.
Automatic Incoming Payments

Checks, bank transfers, and bill of exchange payable are externally initiated automatic incoming payments. Payments by direct debit with mandate and credit card are internally initiated automatic incoming payments. The incoming payment process is described below using the example of the direct debit with mandate. 1. Starting the Payment Run To start the payment run, navigate to the Receivables work center and choose Periodic Tasks -> Payment Runs. Start a payment run or access a standardized payment run that has already been configured. 2. Executing Payments You can check the due customer invoices that have the selected payment method and which the payment run has included with the invoices and execute the payments. You do this in the Receivables work center -> My Work or under Automatic Payments. 3. Approving the Payment
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Depending on your settings in configuration, approval is required by the employee responsible in your company. Then you see the incoming payments to be collected in the Payment Management work center -> Payment Monitor, regardless of whether they need to go through the approval process. 4. Transferring the Data to the Bank To be able to transfer the data to the bank, the payments must be in the Payment Monitor view with the status Ready for Transfer. To transfer bank direct debits and automatic debits, select the appropriate payment (payment method incoming direct debit) and choose the actions for Bank transactions -> Create Payment File. Alternatively, you can automate this process by creating the payment media in the periodic tasks. Go to the Liquidity Management work center and choose File Management ->Outbound Files. Here you find the payment file that you can send to the bank or transfer using bank software. Select the file and click Edit . The Outbound File: <ID> window appears. In the Attachment screen area, download the outgoing payment file to your computer and send in a separate e-mail to your bank. Alternatively, you can transfer the file to your bank software. The system does not automatically transfer data to the bank. 5. Incoming Payment on the Bank Account The incoming payments on the bank account are transferred to the system by the bank statement. This can be done electronically in the Liquidity Management work center by choosing File Management -> Inbound Files. However, you can also enter the bank statement manually in the Liquidity Management work center in the Bank Statements view. 6. Payment Allocation When it creates the bank statement, the system automatically allocates the cash receipt to a payment transaction if the references are unique. If there are no differences between the payment transaction and the cash receipt, the system can make the allocation automatically. If the references are not unique, for example, because the amount on the bank statement (for example, by fees) does not match the transaction amount, the system creates a task so that you can check it manually. Make the necessary clarification by navigating in the Payment Management work center to the Payment Allocation view and manually allocating the cash receipt. For more information, see Automatic Incoming Payments [35].
Manual Incoming Payments

Checks and bills of exchange payable belong to externally initiated manual incoming payments that you can trigger in the Payment Management work center. You can create new checks in the Payment Monitor view and new check deposits using Deposits -> Check Deposits. You can navigate to a specific customer in the Receivables work center to create a payment directly in the customer account monitor. This can also be a direct debit or credit card payment. For more information, see Manual Incoming Payments [40].
See Also
Payment Allocation and Clearing [188] Open Items Receivables [132] Customer Remittance Advices [62] Bank Statements [253] Automatic Incoming Payments [35] Contracts in Receivables
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2.2.2 Automatic Incoming Payments Overview

In your role as an accounts receivable accountant, you require functions to process national and international incoming payment transactions made with customers and other debtors. The system makes these functions available in the Payment Management, Receivables, and Liquidity Management work centers. When you create a payment, you can specify the payment method and other details, such as the bank data of the supplier/customer, or the bank processing date. You can also use the Payment Monitor in the Payment Management work center to monitor all payment transactions regardless of status, payment medium, or payer. You create and edit internally initiated automatic incoming payments in the Receivables work center. You edit the automatic creation of payment media in the Payment Management and Liquidity Management work centers. You use selection criteria first to define the preparatory selection run (payment run) for creating a payment proposal list. You can then edit the payment proposals and release them for payment creation. Note that the system replaces all existing payment proposal lists each time you generate a new list manually.
You can execute the payment run manually as often as you want. When the payment proposals are paid, the system automatically performs payment clearing. The system supports the following standard payment methods for internally initiated incoming payments:

Direct debit Credit card Bill of exchange receivables with or without acceptance
Prerequisites
You have made the following predefined settings in configuration and for master data:
Configuration
Scoping Under Questions processes. Fine-Tuning You have selected the following activities in the Business Configuration work center under Tuning

Cash Flow Management , you have made the basic settings for your incoming payment
Activity List
Fine-
Deduction Categories Germany (optional) Deduction Categories US (optional) Tax Adjustments for Payment Differences (mandatory) Business Task Management for Processing of Payments and Clearings (optional) Business Task Management for Processing of Payments and Clearings (optional) Business Task Management for Bank Statement Processing (optional)
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Business Task Management for Credit Card Processing (optional) Business Task Management for Payment Processing (optional) Business Task Management for Payment and Liquidity Bank Groups (mandatory) Liquidity Forecast Profiles (optional) Global Settings for Management of Payments (optional) Global Settings for Liquidity Management (mandatory) Payment Authorization Threshold (optional) Payment Block Reasons (optional) Import Formats for Bank Statements (mandatory) Release Bank Statements (mandatory) Credit Card Types (optional) Direct Debits (mandatory) Credit Card Authorization Profiles (optional) Clearing Strategy (mandatory) Payment Advice Deletion Period (optional) Payment Strategy (mandatory) Payment Allocation (optional) Payment Approvals (optional)
Master Data

You have defined a country in which your company is registered. You have made a payment agreement with your customers and debtors and have made other related settings, for example, defined the account for automatic debit authorization from which money can be deducted, or defined at least one credit card for making credit card payments. You have defined the supported payment formats for your bank. You have made sure that your bank accounts are active for incoming payments and all related settings have been made. This includes setting up the payment procedure and releasing the required currencies.
Process Flow
The following section explains the steps that need to be performed to use the automatic payment process and to process the relevant open items. The process flow describes the individual steps that are specific to an internally initiated automated incoming payment made by direct debit.
Creating the Invoice

1. A customer has requested services or ordered goods from a sales employee of your company using a sales order from the Sales Orders, Service Orders, and Product and Service Portfolio work centers. 2. In the Customer Invoicing work center, your company's sales employee invoices the customer who has procured the requested services or ordered goods from your company and sends the invoice to the customer.
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The customer invoice contains a reference to preceding documents, for example, to an underlying quote and an underlying customer or service order. In addition, the system provides functions for the payment of customer invoices without preceding documents. Choose the Manual Invoice function in the Customer Invoicing work center. 3. In your role as accounts receivable accountant, you want to clear the open items of the invoice. 4. Depending on whether you or your customer initiate the incoming payment to clear open items from the invoice, you perform the process steps listed.
Triggering the Automated Payment Process

1. Navigate to the Receivables work center and choose Periodic Tasks Payment Runs .
2. Choose New then Payment Run. Define for which customer(s) and with which criteria you want to schedule a payment run to clear open items. You create a new payment run based on these criteria. Possible selection criteria for your payment run are: Posting date

Bank processing date Include on account payments Company Customer from / to ID You can define a value range and thus select multiple customers for one payment run.
If you do not select a customer, the system selects all the customers entered in the system for the payment run.

Currency Next payment run date
3. Activate the payment run and choose Schedule . 4. The Schedule Job screen appears. Choose when the payment run should be executed. You have the following options: Start Immediately The system starts the payment run directly after you have saved your entries.
Single Run The system starts the payment run on the date and at the time you have specified. Run After Job The system starts the payment run depending on another payment run. That is, the payment run starts directly after completion of the payment run that you selected from the selection list.
The system starts the payment run and generates a payment proposal list using the values defined in configuration. Note that the time it takes for the payment run to execute varies depending on the number of items to be paid. 5. In the Receivables work center in the Automatic Payments view, display the payment proposals that have been created with the customers and your company's other debtors for which receivables exist. 6. To make changes to a payment proposal, select the appropriate payment proposal and click Edit .
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7. The screen for the selected payment proposal appears. You can change the payment method, enter other bank details, or enter or change a cash discount amount. You can also change the payment date of the payment, for example. You can also cancel a payment proposal here. This does not affect the open items since there has been no posting in the system. 8. To make a payment, select it and choose Execute Payment. For more information, see:
Open Items Receivables [132]
Automated Creation of the Payment Medium

You can view the status of the payment in the payment monitor. Go to the Payment Management work center and navigate to the Payment Monitor view. To speed up the search process, we recommend that you use the enhanced search function. To do this, choose Advanced and enter your search criteria (for example, payment method, document ID, or posting date). To automate the next step, proceed as follows: 1. Within the Payment Management work center, go to the Periodic Tasks view and choose Payment Media Runs. 2. Define for which payments and with which criteria, you want to schedule a payment media run. Possible selection criteria are: Payment Method You define the payment method and account from which can be collected in the Business Partner Data work center under

Payment Agreement
Business Partner
Payment Data
Payment Media Payment Format Customer or Supplier You can define a value range and then select multiple business partners or a payment processing date for one payment media run. If you do not select a business partner or payment processing date, the system selects all business partners entered in the system regardless of possible payment processing dates for the payment media run.
Company Currency Payment Execution Date Payment Method (for example, direct debit with or without automatic debit authorization) You define the payment method and account from which can be collected in the Business Partner Data work center under Business Partner Payment Agreement Payment Data .
Payment Order
3. Start the predefined payment media run manually if required, or schedule the run periodically. To do this, go to the Job Scheduler screen and choose Activate and Schedule .
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You can activate a payment media run directly on the Job Scheduler screen or from the payment media run overview in the Periodic Tasks view. You can use the payment media run for all standard payment methods that the system supports. 4. Download the file from the system and save a local copy. You need the local copy to transfer the outbound file to your bank. The file is transferred using specific bank software that you should have received from your bank. 5. Transmit the local outbound file online to your bank using the required bank software. For more information, see:

Credit Card Chargebacks [190] Quick Guide for Credit Card Settlement Runs [240]
Alternative Process: Manual Creation of the Payment Medium

If you do not want to create the payment medium automatically, as described above under Automatic Creation of the Payment Medium, proceed as follows: 1. Go to the Liquidity Management or Payment Management work center and navigate to the Payment Monitor view. 2. Check your worklist to view which payments were already triggered and whether appropriate payment media were generated. To speed up the search process, we recommend that you use the enhanced search function. To do this, choose Advanced and enter your search criteria (for example, payment method, document ID, or status). 3. Select the outbound file for the payment by direct debit and choose Payment File Transfer. Actions for Bank Transactions Create
to generate an outbound file for download. The status of the payment document changes to In
4. Download the file from the system and save a local copy. You need the local copy to transfer the outbound file to your bank. The file is transferred using specific bank software that you should have received from your bank. 5. Transmit the local outbound file online to your bank using the required bank software.
Editing the Bank Statement

1. Within the Liquidity Management work center, navigate to the Bank Statements view. 2. Enter your bank statement data in the system. To ensure a timely update of your bank balances, we recommend saving the bank statement as a local bank statement file on the day after the online transfer. Depending on the standard processes in your company, you have the following options to enter bank statement data in your system: Manual Entry for Bank Statement Data Submitted on Paper Enter the bank statement items from the local copy manually in your system, taking account of references to preceding documents (for example, invoices).
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Electronic Entry for Bank Statement Data Submitted Online To transfer a locally saved bank statement file to the system, choose Bank Reporting Inbound Files New Inbound File Bank Statement File Type . Check the bank statement data and release the bank statement. The system automatically transfers the data from the locally saved bank statement file to your system. Indicate the bank statement file as Confirmed.
See Also
Contracts in Receivables
2.2.3 Manual Incoming Payments Overview

In your role as an accounts receivable accountant, you require functions to process national and international incoming payment transactions made with customers and other debtors. The system makes these functions available in the Receivables, Payment Management, and Liquidity Management work centers. All special features can be defined, such as settings for the payment methods and payment procedures, payment formats or data media. The system also enables you to monitor payment transactions with a complete record of the processing status of all relevant payment processes. You can initiate payments yourself (internally initiated incoming payments) or edit payments that your customers and other debtors have initiated (externally initiated incoming payments). You create incoming payments depending on the payment method in the Receivables work center (for example, for direct debits), Payment Management work center (for example, for incoming checks) or Liquidity Management work center (for example, for bank statements). You perform further processes, such as editing check deposits in the Payment Management work center. You can then manually clear the edited incoming payments in the Receivables work center, if required. The system supports the following standard payment methods:
Payment Methods for Internally Initiated Incoming Payments Direct debit
Credit card payment
Payment Methods for Externally Initiated Incoming Payments Checks, including payment advices, check deposits, and lockbox providers, if required

Bank transfer Bill of exchange payables, including appropriate bill of exchange deposits, if required Processing bill of exchange payables is not released for Germany.

Scoping
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Configuration settings are normally performed by a key user. If you do not have the required authorization, contact your key user. Manual Incoming Payments is activated in your solution configuration. To find this business option, go to the Business Configuration work center and choose the Implementation Projects view. Select your implementation project and click Edit Project Scope . In the Scoping step of the project, ensure that Payment and Liquidity Management is selected within Cash Flow Management. In the Questions step, expand the Cash Flow Management scoping element, select Payment and Liquidity Management and answer the questions related to Manual Incoming Payments. Fine-Tuning Manual Incoming Payments is activated in your solution configuration. To find this activity, go to the Business Configuration work center and choose the Implementation Projects view. Select your implementation project and click Open Activity List . Select the Fine-Tune phase, then select the following activities from the activity list:

Deduction Categories Germany (mandatory) Deduction Categories US (mandatory) Business Task Management for Outgoing Check Processing (optional) Business Task Management for Processing of Payments and Clearings (optional) Business Task Management for Credit Card Processing (optional) Business Task Management for Bank Statement Processing (optional) Business Task Management for Payment Processing (optional) Bank Groups (mandatory) Liquidity Forecast Profiles (optional) Global Settings for Management of Payments (optional) Global Settings for Liquidity Management (mandatory) Payment Authorization Threshold (optional) Payment Block Reasons (optional) Import Formats for Bank Statements (mandatory) Release Bank Statements (mandatory) Credit Card Types (optional) Direct Debits (mandatory) Credit Card Authorization Profiles (optional) Clearing Strategy (mandatory) Payment Advice Deletion Period (optional) Payment Strategy (mandatory) Payment Instruction (optional)
Master Data

You have defined a country in which your company is registered. You have made a payment agreement with your customers and debtors and have made other related settings. For incoming payments, you only need to specify payment agreements for direct debits and credit cards. You do not need to define a payment agreement to enter checks.
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You have defined the supported payment formats for your bank. You have made sure that your bank accounts are active for incoming payments and all related settings have been made. This includes setting up the payment procedure and liquidity check, and releasing the required currencies. You do not need to make any predefined settings in configuration for incoming checks. But before you can enter a check, you have created a check storage in the master data.
Process Flow
The following section explains the precautionary and processing steps that need to be performed to use the manual payment process and to process the relevant open items. The process flow describes the individual steps that are specific to a externally initiated incoming payment by check.
Creating an Invoice
1. A customer has requested services or ordered goods from a sales employee of your company using a sales order from the Sales Orders, Service Orders, and Product and Service Portfolio work centers. 2. Within the Customer Invoicing work center, a sales employee of your company invoices the customer who has procured the ordered goods or requested services from your company. The invoice contains a reference to preceding documents, for example, to an underlying quote and an underlying customer or service order. In addition, the system provides functions for the payment of invoices without preceding documents. 3. In your role as accounts receivable accountant, you want to clear the open items of the invoice once you have received the payment.
Editing a Check
1. The customer sends your company a check with which he or she wants to clear the outstanding items from the invoice that you have sent to him or her. 2. Go to the Payment Management work center and choose Incoming Payments Checks .
3. Choose New to transfer the check data to your system. Depending on the processes in your company and the number of checks that you want to enter, the following functions are available: Single Check You can enter exactly one check and prepare for further processing.
Multiple Checks You can enter multiple checks at the same time in table format and prepare for further processing.
4. Transfer the check data to your system on the following New Single Check screen or New Multiple Check screen. This includes the following data: Company

Check number Total amount Issuer bank account
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If you do not enter a deposit date, the system automatically adds the current date as the earliest deposit date. 5. Enter other information on the check received that the system can use for later payment clearing. This includes data on the following tab pages: Reference References that you enter here are used to uniquely assign the incoming payment by check within later payment clearing. We recommend that you enter at least the internal invoice number as a reference. The clearing logic of the system directly reads this number for payment clearing. In this way, you do not need to manually trigger payment clearing and your payment processes are more efficient.
Note to Payee The free text that you enter here is used for the internal documentation of the payment in your system. The clearing logic of the system does not read the note to payee for payment clearing.
6. Once you have entered the data, choose Release. The system transfers the status change of the check asynchronously to the Receivables work center. This changes the status of the relevant item; the status of the item changes to Cleared in the customer account monitor. If the system cannot automatically clear the relevant item, it creates a task for manual clearing. 7. To assign a check deposit that already exists to the check, proceed as described under Assigning the Check Deposit.
Creating a New Check Deposit

1. Within the Payment Management work center, go to the Incoming Payments view, Check Deposits and Lockbox Batches. You can assign the check that you want to clear to a previously created check deposit with the status In Preparation if the company and bank account ID and the document date match. 2. Choose New Check Deposit to create a new check deposit to which you can assign the check that you want to clear. If check deposits already exist in your system, the system displays them in a list. You can filter the list according to the status of the check deposit. To do this, choose Display in the input help. The system sequentially numbers the check deposits that you create. We recommend that you check the check deposit assignment of your check. To do this, go to the editing of the check deposit. On the Check Deposit: <Check Deposit Number> screen on the Assigned Checks tab page, you can remove the checks assigned to the check deposit or other check deposits. You cannot assign any other checks to the check deposit that you have opened for processing. (See the section Assigning the Check Deposit). 3. Once you have completed the check deposit assignment of the check that you want to deposit, choose Release and Print Deposit Slip. You can release a check deposit exactly once. The system automatically creates a print file once the check deposit has been released. To create other print files, the Print Deposit Slip function is available if required.
Assigning the Check Deposit

You can also select the check that you want to deposit directly in your worklist on the Checks screen. To do this, perform the following process steps:
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1. Select the check that you want to deposit and choose Assign to Deposit dialog box appears.
Actions
Assign to Deposit . The Input Parameters for
To deposit a check, it must have the status Released.
2. Assign the check that you are editing to a check deposit in the Check Deposit ID field. You have the following options here: Select an existing check deposit and assign the check to be deposited to it.
Do not select a check deposit and do not enter anything else. If a suitable check deposit does not exist, the system creates a check deposit and assigns the check to this check deposit.
3. Once you have completed the check deposit assignment of the check that you want to deposit, choose Release and Print Deposit Slip. You can release a check deposit exactly once. The system automatically creates a print file once the check deposit has been released. To create other print files, the Print Deposit Slip function is available if required.
Entering the Bank Statement Item

1. In your role as cash manager or accounts payable accountant, you receive a bank statement from your company's bank. One bank statement item refers to the check deposit. 2. You want to enter this bank statement item in your system. 3. Navigate to the Liquidity Management work center and choose Bank Reporting Bank Statements . Here you can view all of your company's bank statements that were manually entered or automatically generated by the system. 4. Choose New Bank Statement to create a bank statement that represents the incoming payment from the check deposit as an item. On the following Create Bank Statement screen, enter the general data for the bank statement. Enter the general data as it appears on the bank statement. Statement ID The system assigns sequential bank statement IDs if nothing else is planned in configuration.
Opening Balance The system derives the opening balance on your company's bank account from the balance of the previous bank statement. Bank Closing Balance
5. Once you have entered the data, go to item selection by choosing Next. The system displays an overview of all internally initiated transactions that were already entered for the selected bank statement. a. The system displays the check deposit that you can select. b. If the check deposit is not displayed here, you can enter the data manually: Choose Next to go to item entry to enter the incoming payment by check as a new transaction. You want to manage this payment as an item of the newly created bank statement. Make sure that you enter all required values. This includes data on the following tab pages: Transaction Data You use the specified transaction data to manage the transaction type, original currency amount, business partner (customer), document ID, value date, and account owner, for example.
References / Note to Payee (optional)
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You have already entered both of these fields when you entered the check. Leave the fields empty when confirming the check deposit. 6. Once you have entered the data, you can check your bank statement with the check deposit as bank statement item. You can then finish processing and release the bank statement. To do this, choose the actions Save, Release, and Close. The status of the check deposit changes to Confirmed.
Clearing the Payment Received by Check

1. Go to the Receivables work center to trigger payment clearing for the items of the edited bank statement. If you have specified references when you entered your check, the system automatically performs payment clearing. Manual processing is therefore not required. If the invoice amount of the check differs from the check amount and automatic clearing is not possible, the system creates a task for manual payment clearing.
If you have set up in configuration that postprocessing is required for underpayment or overpayment, the system creates a task for manual payment clearing. Therefore, we recommend that you specify references directly when you enter your check. The higher degree of automation increases the efficiency of your accounting processes and reduces the costs that arise from the processing effort.
2. If manual triggering of payment clearing is required, the system offers you the following functions depending on the processes in your company and your configuration settings: Manual Payment Clearing This process of payment clearing refers to a selected payment. You use this process in the following cases: No references were entered in the system.

There is an overpayment. A different payer was entered.
Customer Account Maintenance This process of payment clearing refers to all payments that exist in the system for a selected customer.
3. Depending on the selected process of payment clearing, choose one of the alternatives described in the following sections. Perform the process steps listed.
Manual Payment Clearing

1. Navigate within the Receivables work center to the Payment Clearing view and display the items that were entered in your system and that are available for payment clearing. 2. Select the item of the incoming payment by check that you want to clear. To do this, choose Edit . Items that you want to clear must have the status Open or Partially Cleared. On the following Manual Payment Clearing: <Payment Clearing Number> screen, the system displays the details on the selected item. This includes the payment amount, not assigned payment amount, taken cash discount, other deductions, or payment type. 3. Choose Edit Clearing Proposal. The Proposed Items screen appears where you can search for one or more invoices that are to be used to clear the items from the incoming payment by check. In the Open Items list, select the invoice(s) that you want to clear with the incoming payment by check. The system displays your selection in the Display Clearing Document list. You can clear an invoice completely or partially with an incoming payment: Partial Clearing of an Invoice
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The invoice amount is greater than the amount that was actually paid by check. You then manually adjust the amount that is assigned to the invoice. If you clear the invoice with the payment, there is a residual item.
Clearing Multiple Invoices The individual invoice amounts are smaller than the amount that was actually paid by check. If you clear multiple invoices with the payment, the system combines as many invoices until the invoice amounts are similar to the actual payment amount.
4. Once you have completed processing the clearing proposal, choose Accept Proposal. Thus, the prerequisites for payment clearing have been met and you can trigger the process of payment clearing for the selected invoice(s) using Actions Clear .
The system only starts payment clearing if none of the selected items is already involved in another clearing process. If this is the case, the system blocks the selected item for revised payment clearing.
Customer Account Maintenance

1. Navigate within the Receivables work center to the Customers view and choose the Customer Accounts screen. 2. In the displayed worklist, select the customer account from which the incoming payment by check was paid. To do this, choose View . On the following Customer Account Monitor: <Customer Name and Number> screen, the system displays the detailed view of the selected customer account. 3. Within the Customer Account Monitor: <Customer Name and Number> screen, go to the Trade Receivables tab page and start account maintenance. 4. Select the invoice(s) that you want to clear with the incoming payment by check and choose Manual Clearing. You can clear an invoice completely or partially with an incoming payment: Partial Clearing of an Invoice The invoice amount is greater than the amount that was actually paid by check. You then manually adjust the amount that is assigned to the invoice. If you clear the invoice with the payment, there is a residual item.
Clearing Multiple Invoices The individual invoice amounts are smaller than the amount that was actually paid by check. If you clear multiple invoices with the payment, the system combines as many invoices until the invoice amounts are similar to the actual payment amount.
You can view the items of the selected invoice using Item Details on the separate Item Details: <Document Number> screen. The system displays all items regardless of their status. You can select a cleared item and go directly to the related payment clearing process using View Clearing Document. This could be necessary, for example, to view the items or to cancel payment clearing. 5. The Manual Clearing screen appears. Select the incoming payment by check with which you want to clear previously selected invoice(s). 6. Once you have made the selection, choose Transfer. The system automatically closes payment clearing using the selected items.
See Also
Contracts in Receivables
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2.2.4 Incoming Payments by SEPA Direct Debit Overview

The single European payments area (SEPA) enables you to make direct debits within the participating European countries. This type of direct debit can be used within a country or across national boundaries. To make SEPA direct debits, you need to obtain a statutory debit authorization in the form of a mandate. If you have created a valid mandate of your customer in the system, it is selected in the payment run or during the manual direct debit and the relevant data is then sent to the bank. For SEPA transactions, the international bank code BIC (SWIFT) must be entered, which replaces the conventional national bank code. The international account number IBAN also needs to be entered, which appears instead of the national account number. New XML payment formats are also used. If in your role as accounts receivable accountant, you want to directly debit your customers (that is, within the SEPA participating countries), the system makes the required functions available in the Receivables, Payment Management, and Liquidity Management work centers. This document deals with both the precautionary measures that need to be made to use SEPA direct debits and making manual or automatic direct debits. The system does not support any outgoing SEPA direct debits that are initiated by a supplier, for example.
Prerequisites
Configuration
Scoping Under Questions Cash Flow Management, you have made the basic settings for your incoming payment processes. Fine-Tuning In the fine-tuning activity Global Settings for Payment, you have prioritized your payment methods to include SEPA direct debit for each concerned country by selecting Direct Debit and moving the entry to the desired position by clicking Move Up . Master Data
Master Data My Banks using You have selected the bank in the Liquidity Management work center under Edit General and have selected Payment Formats . There you have select the payment medium format SEPA Direct Debit. On the Bank Accounts tab, you have also selected the entry SEPA Direct Debit on the lower screen area on the Payment Method tab. You have received a unique creditor identifier from your countrys national bank and have entered your company in the master data in the Organizational Management work center. In the Receivables or Business Partner Data work center, you have selected the Customers view and by selecting Edit Financial Data Bank Data you have entered the international account number IBAN. In this view under Payment Data you have also defined the payment method Direct Debit.
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You have obtained and activated debit authorization in the form of a SEPA mandate from your customer. You have also entered it in the Receivables or Business Partner Data work center.
For more information on the creditor identifier and SEPA mandate, see the section Preliminary Steps.
Preliminary Steps Request and Enter Creditor Identifier

The unique creditor identifier (UCI) enables the collector in a direct debit to be identified. In connection with the mandate number it enables the mandate to be checked by the payer or paying bank. The payee requests this number from a central issuer, for example, the national bank. Only one number can be requested. If any data changes such as the company or legal form of the applicant, a new number must be requested and the old number submitted for deletion. You define the creditor identifier in the system in the Organizational Management work center. For more information, see External Business Identifiers.
Create and Edit SEPA Mandate

The SEPA mandate can be compared to the conventional debit authorization and is used as the payers (debtor) approval to the payee (creditor) to initiate an automatic debit in which the debtors bank is allowed to meet this request and debit the account. As the payee, you create the SEPA mandate in the system, enter the data, and print it. You send this form by post to your customer, that is, the payer. The customer signs the mandate and returns it, thus giving you permission to debit their account. You add the missing information in the system and activate the mandate. You need to keep this form and send the required entries to the bank for each direct debit within the payment file. You need to inform the bank of the following changes by means of updated data within the payment file:

Mandate ID Payer Name Payer IBAN or BIC Company Name
For mandates, you are legally required to differentiate between core direct debits for private customers and businessto-business direct debits. The type of mandate determines in which time frames the banks must make SEPA direct debits. The mandate information is always defined in the system in the payers master data.
For more information, see Create a SEPA Direct Debit Mandate [148]. If you want to keep track of the mandates for all of your customers or for certain periods of time, for example, you can do so using the SEPA Mandate List [185] which provides an overview of all SEPA mandates.
Process Flow
Creating the Sales or Service Order and the Manual Invoice
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1. A customer has requested services or ordered goods from your company's sales employee using a sales order from the Sales Orders or Service Orders work centers. In the sales or service order, the sales employee enters the payment method Direct Debit. The payment method is then automatically transferred with the note in the invoice that the amount was debited (for example, The invoice amount due will be collected in accordance with the payment terms via direct debit). 2. Optional: If there are no preceding documents, such as a sales or service order, you can create an invoice manually. You do this in the Customer Invoicing work center where your companys sales employee has issued the customer the relevant manual invoice. When entering the invoice, the sales employee enters the payment method Direct Debit. So the invoice automatically contains the note that the amount was debited by direct debit. The sales employee sends the invoice to the customer. In the next step, in your role as the accounts receivable accountant, you would like to clear the open items of the invoice.
Initiating the Automatic Direct Debit Create and Perform the Payment Run
1. Go to the Receivables work center and choose Periodic Tasks Payment Runs .
2. Choose New . On the New Payment Run screen, you enter the customer whose payables you want to clear with SEPA direct debit. Only enter a date in the Next Payment Run Date field if you want to perform the payment run once only. If you schedule the payment run to be performed periodically, the date of the next payment run is determined by the system. Depending on the payment strategy, the system determines for each open item whether it is paid during this or the next payment run. 3. Save and activate the run. Choose Schedule to enter the time when the run should be performed. You can also schedule recurring runs on a regular basis. The system starts the payment run at the time you specified and generates a payment proposal. For more information, for example, on scheduling payment runs, see Automatic Incoming Payments [35].
Checking the Payment Proposal and Executing the Payment

1. Navigate to the Automatic Payments view and open the previously generated payment proposal by selecting the proposal and choosing Edit . 2. Check the payment proposal and make any necessary changes. You can, for example, on the General Data tab, select another mandate ID using the input help if the system has not proposed the correct mandate 3. To trigger the payment, choose Execute Payment . For more information, for example, on scheduling payment runs, see Automatic Incoming Payments [35].
Initiating the Manual Direct Debit

1. Go to the Receivables work center and choose Customers Customer Accounts . Select the customer whose payable should be cleared by SEPA direct debit. Choose View . 2. Select the open item(s) to be cleared and choose Pay Manually By Direct Debit .
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3. Check on the New Incoming Direct Debit screen whether the prefilled entries are correct and change them if necessary. You can, for example, select another mandate ID using the input help if the system has not proposed the correct mandate. 4. Choose Release . On the basis of your configuration settings, the payment runs through an approval process. As soon as it is completed, the payment is cleared. If you want to track the status of your payment, switch to the Payment Management work center and choose the Payment Monitor view.
Creating and Downloading the Payment Medium

1. To create a payment medium automatically, switch to the Payment Management work center and select under Periodic Tasks the Payment Media Runs subview. 2. Choose New Payment Media Run. On the New Payment Media Run screen enter your company and the customer for whom you want to perform the SEPA direct debit. Set the Including Bank Transactions indicator and in the Format field, select the SEPA Direct Debit entry. Save your entries. 3. Activate the payment media run. Choose Schedule to enter the time when the run should be performed. You can also schedule recurring runs on a regular basis. The system starts the payment media run at the time you specified and generates a payment file that you can send to the bank. For more information, see Quick Guide for Payment Media Runs [236]. 4. Download the payment file and save a local copy by navigating to the Liquidity Management work center and choosing File Management and then Outbound Files. On the Outgoing File: <number> screen, select the appropriate file and click Download . The file is transferred using specific bank software that you should have received from your bank. 5. Transmit the local outbound file electronically to your bank using the bank software. Your bank statement shows you that the payment has been received.
Optional: Manually Creating the Payment Medium

1. To create the payment medium manually, switch to the Payment Monitor view. This view is available in both the Payment Management and Liquidity Management work center. 2. In the list, select the required SEPA direct debit that was initiated in the Receivables work center and that has the status Ready for Transfer. To speed up the search process, you can use the extended search function. For this, choose Advanced and enter your search criteria. For example, in the Payment Method Details field, select the SEPA Direct Debit entry. Click Go . Only payments are displayed that correspond to the selected search criteria. 3. Choose Actions for Bank Transactions and then Create Payment File . The system generates a payment file that you can send to the bank. The status of the payment changes to In Transfer. 4. Download the payment file and save a local copy by navigating to the Liquidity Management work center and choosing File Management and then Outbound Files. On the Outgoing File: <number> screen, select the appropriate file and click Download . The file is transferred using specific bank software that you should have received from your bank. 5. Transmit the local outbound file electronically to your bank using the bank software. Your bank statement shows you that the payment has been received.
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Editing the Bank Statement

1. To enter the bank statement that contains the incoming payment of your SEPA direct debit item, switch to the Liquidity Management work center and choose the Bank Statements view. 2. Depending on the standard processes in your company, you have the following options to enter bank statement data in your system: Manual Entry for Bank Statement Data Submitted in Paper Form In the guided activity for the bank statement, select the SEPA direct debit payments manually and then release the bank statement.
Electronic Entry for Bank Statement Data Submitted Electronically To transfer a locally saved bank statement file to the system, choose the File Management view and choose Inbound Files. You can upload the file to the system from this view. Check the bank statement data in the Bank Statements view and release the bank statement. The system automatically transfers the data from the locally saved bank statement file to your system. If the bank statement was released, the relevant payment is indicated as confirmed.
For more information, see Bank Statements [253].
Additional Information on Bank Processing Times

Banks have to adhere by law to certain periods of time when they process SEPA direct debit payments. These periods differ depending on whether your customer is a private customer using a core mandate, or a corporate customer using a business-to-business mandate. The default dates for the bank processing date are calculated by the system on the basis of the document date, which corresponds to the date of the respective payment. However, these date fields can be overwritten. The following default dates are calculated by the system according to the legal requirements:
New core mandate For core mandates that are used for the first time, the bank processing date set by default by the system is five bank business days after the document date. Changed core mandate For core mandates that are in use but have been changed with an amendment, the bank processing date set by default by the system for the first usage after the change is five bank business days after the document date. Recurring core mandate For core mandates that are used repeatedly and have already been used once, the bank processing date set by default by the system is two bank business days after the document date. Business-to-business mandate For business-to-business mandates, the bank processing date set by default by the system is always one bank business day after the document date.
Note that the system calculation assumes that you send the payment file to the bank on the same day that you generate it. This enables the bank to process your payments within these periods of time. You can also track the status of each payment in the Payment Management work center in the Payment Monitor view. The SEPA mandates used for a direct debit are displayed in the payment monitor.
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2.3 Special Business Transactions

2.3.1 Canceling a Supplier Invoice Overview
You can cancel incoming invoices that you have paid manually or in a payment run, or for which you have requested payment. The procedure for the cancellation depends on the status of the invoice and the payment. It is preferable that you do not cancel an invoice that has already been paid or cleared. If, however, you need to cancel an invoice that has already been paid, first go to the Payables work center to reverse the clearing and then cancel the invoice in the Supplier Invoicing work center. If you first cancel the supplier invoice in the Supplier Invoicing work center, the original clearing still exists and the system generates a new open item (reversal document).
Process Flow Canceling the Payment

First check whether it is possible to reverse the payment. For example, it is not possible to reverse a payment if a check has already been sent to the supplier or funds have been transferred electronically to the bank. Case a): Reversal of payment is not possible In this case, reverse the payment clearing in the supplier account monitor. 1. Go to the Payables work center and select Supplier Supplier Accounts . In this view choose the Account ID you wish to see and click View . Select the invoice and click Clearing Document . Click View All and then Reset Clearing . Result: The status changes from Cleared to Open. Case b): Reversal of payment is possible After payment has been made by either bank transfer or check, the Payables work center shows the status Cleared. The Payment Management work center displays the status Ready For Transfer if a check has not been printed. If a check has already been printed, the status In Transfer is displayed. (The payment execution status in the Payables work center is set to the same status values.) In this case, you need to perform the following step (step 1) to reset the status to Ready For Transfer. If this status is already displayed, you can start directly with step 2. 1. Go to the Payment Management work center and choose the appropriate payment in the Payment Monitor view. For a check, for example, choose Actions for Checks Set to Not Transferred . Result: The status displayed in the payment monitor is Ready For Transfer. 2. Go to the Payables work center and select Supplier Supplier Accounts . In this view choose the Account ID you wish to see and click View . Select the payment and click the value in the Document ID column. Click View All , then click the Actions button and choose Reverse from the list. Result: The payment and clearing are reversed. The status displayed in both the supplier account monitor and the payment monitor is Canceled.
Canceling the Invoice
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1. To cancel the invoice, go to the Supplier Invoicing work center. 2. Under Invoices and Credit Memos, select the invoice you want to cancel (with the status Posted) and choose Cancel Document . Result: The system generates a cancellation invoice. Simultaneously, in the Payables work center in the supplier account monitor, the status of the invoice changes from Open to Canceled. Invoices and their payment amounts can only be canceled in full.
See Also
Supplier Account Monitor [74] Payment Allocation and Clearing [188] Special Cases for Reversals
2.3.2 Canceling a Customer Invoice Overview

You can cancel outgoing invoices if they have already been paid by direct debit or credit card. The procedure for the cancellation depends on the status of the invoice and the payment. It is preferable that you do not cancel an invoice that has already been paid or cleared. If, however, you need to cancel an invoice that has already been paid, first go to the Receivables work center to reverse the clearing and then cancel the invoice in the Customer Invoicing work center. If you first cancel the customer invoice in the Customer Invoicing work center, the original clearing still exists and the system generates a new open item (reversal document).
Process Flow Canceling the Payment

First check whether it is possible to cancel the payment. For example, it is not possible to reverse a payment if a direct debit has already been sent in a payment file to the bank. Case a): Reversal of payment is not possible In this case, you have have already received the payment from your customer and you reverse the payment clearing in the customer account monitor: 1. Go to the Receivables work center and call up the appropriate customer account monitor under Customer Accounts View . Select the invoice and click Clearing Document . Click View All and then Reset Clearing . Result: The status changes from Cleared to Open. Case b): Reversal of payment is possible It is only possible to reverse the payment if it is a direct debit or credit card payment made by your customer and the payment has not yet been processed by your bank. If this is the case, the Receivables work center displays the status Cleared. The Payment Management work center displays the status Ready For Transfer if a payment file has not yet
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been created. (The payment execution status in the Receivables work center is set to the same status values). In this case, you can start directly with step 2, which is described subsequently, to cancel the payment. If a payment file has already been generated, the status In Transfer is displayed. If you have not yet sent the file to the bank, you proceed according to the following description to first reset the status to Ready For Transfer and then cancel the payment. 1. Go to the Payment Management work center and choose the appropriate payment in the Payment Monitor. For an incoming direct debit, for example, choose Actions for Bank Transactions Set to Not Transferred. Result: The status displayed in the payment monitor is Ready For Transfer. 2. Go to the Receivables work center and call up the appropriate customer account monitor under Customer Accounts View . Select the payment and choose the number in the Document ID column. Click View All and then Actions Reverse . Result: The payment and clearing are reversed. The status displayed in both the customer account monitor and the payment monitor is Canceled.
Canceling the Invoice

This document contains text that is relevant for Mexico only. To ensure that the system displays the correct text, select Personalize My Settings. Select the Onscreen Help and choose Mexico in the Country drop-down menu. Save your settings and logout to ensure the changes are made. 1. To cancel the invoice, go to the Customer Invoicing work center. 2. Under Invoices and Credit Memos, select the invoice you want to cancel and choose Cancel . On the New Cancellation - Invoice screen, choose Save and Release . Result: The system generates a cancellation invoice. Simultaneously, in the Receivables work center in the customer account monitor, the status of the invoice changes from Open to Canceled. Invoices and their payment amounts can only be canceled in full.
See Also
Customer Account Monitor [133] Payment Allocation and Clearing [188] Special Cases for Reversals
2.3.3 Customer Payments by Credit Card Overview

The system enables you to process customer payments made by credit card, including incoming payments from your customers and credit memos to your customers. To be able to use the credit card process, you need to complete a few preliminary steps and, most importantly, sign a contract with a service provider (who has to be an SAP Partner). This document deals with both the preliminary steps that must be taken in order to use credit cards and with the credit card payment process itself.
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Configuration settings are normally performed by a key user in the Business Configuration work center. If you do not have the required authorization, contact your key user. Scoping (required) You have activated Customer Payments by Credit Card in your solution configuration. To find this business option, go to the Business Configuration work center and choose the Implementation Projects view. Select your implementation project and click Edit Project Scope . In the Scoping step of the project, ensure that Payment and Liquidity Management is selected within Cash Flow Management. In the Questions step, expand the Cash Flow Management scoping element, then expand Payment and Liquidity Management. Select Payment Methods and activate the option for customer payments using credit cards by selecting the Yes radio button in the Incoming Payments section. Make sure to select the correct service provider in the Credit Card Service Providers section. For more information on the service provider and how to set up the credit card functionality, see About Credit Card Service Provider Computop or About Credit Card Service Provider Paymetric. Integrate and Extend (required)
Master Data for Your Credit Card Service Provider You have created a supplier master data entry for your chosen credit card service provider and subsequently established the communication arrangement. To find this activity, go to the Business Configuration work center and choose the Implementation Projects view. Select your implementation project and click Open Activity List . Select the Integrate and Extend phase, then select Credit Card Service Provider Paymetric or Credit Card Service Provider Computop from the activity list and enter the relevant details. Be sure to include the Dun & Bradstreet (D-U-N-S) number (to be found using the Additional Identifiers link). Alternatively, you can navigate to the Payables or Supplier Base work center and enter the supplier master data using the Suppliers view. For more information, see Computop Supplier Master Data Entry or Paymetric Supplier Master Data Entry. New Clearing House and New Clearing House Account You have created a clearing house record and a clearing house account. To find this activity, go to the Business Configuration work center and choose the Implementation Projects view. Select your implementation project and click Open Activity List . Select the Integrate and Extend phase, then select Credit Cards Customer Payment from the activity list. On the activity details screen, choose the Create new clearing house link text, and enter the relevant details. When you are finished, return to the activity details screen, choose the Create new clearing house account link text, and enter the relevant details. Do not forget to enter the merchant ID you received from your credit card service provider! This activity can also be completed in the Liquidity Management work center. To find this activity, choose Master Data Clearing Houses and Master Data Clearing House Accounts .
For more information, see Clearing Houses and Clearing House Accounts [260]. Fine-Tuning (first is required; second is optional) You have established a communication arrangement with a service provider; you have specified how credit card authorizations are performed by the system; you have specified in which form the settlement of individual credit card payments will be processed by the system. To find these two prerequisite Fine-Tune activities, go to the Business Configuration work center and choose the Implementation Projects view. Select your implementation project and click Open Activity List . Select the Fine-Tune phase, then perform the following activities in the activity list:
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Computop Communication Arrangement or the Paymetric Communication Arrangement choose the appropriate activity from the activity list in order to establish the communication arrangement with your credit card service provider. For more information, see Computop - Communication Arrangement or Paymetric - Communication Arrangement. Credit Card Authorization and Settlement Choose this optional activity to review and adapt the predefined profiles that control the credit card authorization horizon and to assign a settlement profile to your company. The standard settings delivered with the system allow you to use the credit card process and may already meet your business needs. If you decide to adapt these settings, be sure to align all user-defined settings with your service provider. 1. Determine for which period of time the payment amount is reserved on the customer's credit card account. On the activity details screen, click the link below Credit Card Authorization Profiles. 2. After having specified the authorization details, ensure that you assign this profile to your company. Click the second link below Credit Card Authorization Profiles. For more information, see Configuration: Credit Card Authorization Profiles 3. Assign one of the predefined profiles (single payment settlement or batch settlement) to your company. On the activity details screen, click on the Assign settlement profiles to your company link text.
Additional Prerequisite (required) You have entered credit card data for your customer in the system and have chosen credit card as the payment method to be used for automatic payments. In addition, you have defined credit card as payment method. To meet these prerequisites, complete the following:
Customer Account with Credit Card Data You have created a customer account including credit card data. The credit card data for your customer must exist in the system before you can settle customer invoices using the payment method Credit Card. To do this, complete the following steps: 1. Go to the Account Management, Business Partner Data, or Receivables work center and choose the Accounts view (in the Receivables work center choose the Customers view). 2. Select the customer whose credit card data you want to enter. On the Corporate Account Overview screen, click Edit then Financial Data . Optional: If the customer does not yet exist in the system, create a new customer record in this view. For more information, see Create and Edit an Account in the Tasks section of the Accounts Quick Guide. 3. On the Financial Data tab, click Bank Data . In the Credit Card section, click Register with <Service Provider Name> . You are forwarded to your service providers system 4. Enter the credit card information provided to you by your customer. Confirm your entry to send your data to the service provider and generate the credit card token. After the service provider has confirmed your entries, close the service provider's screen. Note that the credit card number is saved only in the service providers system and not in the SAP Business ByDesign system. The credit card token and the masked credit card number are saved within the SAP Business ByDesign system. 5. The credit card, including the masked number that was generated by the service provider, is added to the table. The Default indicator is active as standard. This means that the system proposes this credit card by default when credit card is selected as payment method on sales orders, service orders, and invoices. In case you need to block the credit card for payments at any point in time, select an appropriate reason from the dropdown list in the Blocking Reason column. If you leave this field empty, the credit card is not blocked. Remember to save your customer account master data!
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6. Optional: If the credit card data already exists in the system and you wish to use it for your customer (for example, if you need to re-enter customer master data that has been deleted), click Assign . In the Assign Credit Card dialog box, select the relevant credit card using the value help. Click OK . 7. Optional: Credit Card Payment as Default Payment Method: If your customer has agreed to pay all invoices with the same credit card, you can enter this credit card as the default payment method in the Payment Data on the Corporate Account - Financial Data screen. The system will automatically bill this credit card even you have not entered it on the sales order or on the customer invoice. Note that the system only prints a note informing the customer that the invoice amount will be collected if the payment method Credit Card is also specified on the customer invoice. To choose credit card payment as the default payment method, return to the Financial Data tab, and this time click Payment Data . In the Payment Methods section, click Add Row and select Credit Card from the dropdown list. In the Credit Card section, you can select a credit card from the ones that were assigned to the customer in the corresponding bank data and define a validity period for this payment method. Credit card data must exist in the system even if your customer only wants to pay once using this payment method. If this is the case, you can remove or block the credit card data after the transaction has been completed so that it cannot be accidentally used or proposed as payment method by the system afterwards.
Process Flow
The credit card process involves four parties: Your company, your customer, the credit card service provider and the acquirer, hereinafter referred to as the clearing house. The service provider is responsible for the encryption, tokenization, and authorization of the credit card data in order to ensure Payment Card Industry (PCI) compliance at all times. Furthermore, the service provider acts as the connection between your company and the clearing house responsible for making the actual payments. You Create the Sales or Service Order and the Manual Invoice 1. A customer has requested services or ordered goods from you in your role as the company's sales employee using a sales order from the Sales Orders or Service Orders work centers. In the sales order or service order, you click View All , and then select the payment method Credit Card and the corresponding credit card. If necessary, you can also enter the data for a new credit card. 2. Before releasing the sales order or service order, initiate the authorization of the credit card data and the payment amount in question by clicking Check Authorization . The data is sent to the service provider, who performs the necessary checks and authorizes the amount. This reduces the credit limit of the customers credit card account by the authorized amount. This amount is blocked for the number of days specified in the clearing house account data (for 14 days, for example). Note that at this point the credit card is not yet debited. You can review the authorization details by clicking the link next to the Check Authorization button. Authorizations will only be cancelled automatically by the system as a result of the following scenarios: A document that contained authorizations is deleted or cancelled, the credit card used to make the payment is changed, the customer placing the order is changed, or the payment method is changed from credit card to any other method (only alternative currently available is direct debit). If an authorization is cancelled, it will be deleted from the system and a request to release the reserved funds will be automatically sent to the service provider. If the automatic cancellation fails, you will not be notified. 3. After delivery of the services or goods the invoicing process takes place. The payment method and authorization information is automatically transferred to the invoice with a note stating that the given credit card will be charged with the amount.
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4. Optional Manual Invoice: If there are no preceding documents, such as a sales order or service order, you can create an invoice manually. You do this in the Customer Invoicing work center where your companys sales employee issues the relevant manual invoice for the customer. When entering the invoice, the sales employee selects the payment method Credit Card. The invoice then automatically contains a note stating that the credit card will be charged with the amount. Before releasing the invoice, be sure to click Check Authorization to request the authorization. The sales employee then sends the invoice to the customer. To automatically ensure that the invoice contains a valid authorization, you can create and schedule credit card authorization runs in the Customer Invoicing work center. For more information, see Quick Guide for Credit Card Authorization Runs. You Initiate the Automatic Credit Card Payment In your role as accounts receivable accountant, and after an invoice has been created, you can clear the open items of the invoice by initiating either the automatic credit card payment or creating the manual credit card payment. 1. Create and Perform the Payment Run a. Go to the Receivables work center and choose Periodic Tasks Payment Runs .
b. Click New . On the New Payment Run screen, you enter your company and if necessary, restrict the run to specific customers, for example. c. Save and activate the run. Click Schedule to enter the time when the run should be performed. You can also schedule recurring runs on a regular basis. The system starts the payment run at the time you specified and generates a payment proposal. For more information, for example on scheduling payment runs, see Automatic Incoming Payments [35]. 2. Check the Payment Proposal and Execute the Payment a. Navigate to the Automatic Payments view and open the previously generated payment proposal by selecting the proposal and clicking Edit . b. Check and correct the payment proposal, if necessary. If no payment method was chosen in the preceding documents, the system defaults the payment method specified in the Payment Data section of the customer data (see above) for internally-initiated payments in the payment proposal. If more than one payment method was specified in the payment data, the system proposes the most common payment method of the respective country. It is possible to overwrite the payment method given in the payment proposal. If your customer asks you, for example, to use another payment method instead of their credit card, you can change this in the payment proposal. If there is an issue with the customer account and the status of the payment proposal is Postpone as a result, correct the account settings and ensure that you choose Postpone before executing the payment. Actions Reset
c. Initiate the automatic credit card payment by clicking Execute Payment . On the basis of your configuration settings, the payment runs through an approval process. After the payment has been executed, an authorization of the full payment amount and the credit card data is performed. If the authorization has already taken place on the sales or service order or on the manual invoice, it will only be repeated if the authorization has expired in the meantime. For more information, see Configuration: Credit Card Authorization Profiles (only relevant for sales orders and service orders). In the Payment Management work center in the Payment Monitor view, the status of the payment is now displayed as Ready for Transfer. Note that the Payment Monitor view is also available in the Liquidity Management work center.
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You can cancel a credit card payment only while it has the status Ready for Transfer. To do so, go to the Payment Management work center and choose the Payment Monitor view. Select the payment you want to cancel and click Reverse . Once the payment status is In Transfer, you cannot cancel the payment, but must initiate a credit memo to your customers credit card instead. For more information, for example on payment proposals, see Automatic Incoming Payments [35]. You Create the Manual Credit Card Payment 1. Go to the Receivables work center and choose the Customers view, then select the customer whose payable should be cleared by credit card. 2. Click View and select the open item(s) to be cleared, then choose Pay Manually By the list. and select Credit Card from
a. If you select an open item for which the payment method credit card was already chosen, this information will be used to create the payment. You can review the payment and, if necessary, change the credit card information. When you are finished, click Post . b. If you select one or more open items on which no agreed payment method is chosen, the default credit card of the customer will be selected. You can review the payment and, if necessary, change the credit card information. When you are finished, click Post . 3. On the basis of your configuration settings, the payment will run through an approval process. As soon as the approval is completed, the open item is cleared with the payment. If you want to track the status of your payment, switch to the Payment Management work center and choose the Payment Monitor view. Cancellation of Payments If you have authorized a payment directly from a sales order, service order, or manual invoice and later cancel the payment, these authorizations will not be cancelled and the service provider will not be notified. The authorizations will be re-used as soon as the open item is paid. If you have requested the authorizations directly from the New Credit Card Payment screen (not directly from the sales order, service order, or manual invoice) and later cancel the payment, the authorizations will be cancelled and the service provider will be notified. Payment Amount Increase If the amount to be paid is greater than the amount authorized, you can request an additional authorization for the difference by clicking on the Check Authorization button. Alternative: Pay Manually By Other Payment Methods From the open item list select the item(s) to be cleared, then choose Pay Manually By and select Other Payment Methods. On the New Payment screen, select Credit Card as payment method if it is not already the default. Review the payment, and then click Execute Payment . The approval process and payment status tracking are described in step three above. You Create and Perform the Credit Card Settlement Run After you have initiated the credit card payment automatically or manually, you want to inform your provider that the payment should be made now. To create and edit credit card settlement runs, go to the Payment Management work center. In the Periodic Tasks view, choose the Credit Card Settlements subview. You can schedule your runs according to your business needs, for example to be performed every day or week or once only. If you, for example, specified batch settlement in business configuration, all payments from a run will be bundled in one message that is sent to the provider. For more information, see Quick Guide for Credit Card Settlement Runs [240]. When the settlement run is done, the status of the settled credit card payments changes to In Transfer and the payment message is sent to the provider (in a batch or individually, according to the settings you have made in business configuration). The service provider will then forward the message to the clearing house. The clearing house will check the request and send a reply via the provider as to whether it will credit (or debit) the amount of the credit card payments
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bundled in the message to your account. This reply is automatically updated to the system in the form of the appropriate settlement status. The bank statement will then show you that the payment has been received. Note that the bank statement will show only one item representing the total amount of all the credit card payments that were settled together. But if you have arranged for the clearing house to send you a statement listing all individual credit card payment items, you can check whether the total amount corresponds to these items. You can track the settlement processing status by navigating to the Payment Monitor view and then to the Details section of the screen. The status is displayed under Current Settlement Data. The following settlement statuses exist:
Pending This status means that the message has been sent to the service provider and the system is waiting for a confirmation of the settlement. If no problems occur, the settlement status normally changes to Accepted within a few minutes. If the status does not change within the next 24 hours, you should check whether there has been an error transferring the message. Accepted This status means that the message has been successfully sent to the service provider and from the service provider to the clearing house. The clearing house in turn has confirmed that it will settle the payment and sends this information to the system via the service provider. Rejected This status means that the clearing house rejects the settlement of the payment. The payment status in the Payment Monitor changes back from In Transfer to Ready for Transfer. In this case, contact the service provider or the clearing house to find out the reason for rejection, indicating either the provider ID or the clearing house ID.
Optional: You Settle the Payment Manually 1. To initiate the settlement of a credit card payment manually, switch to the Payment Management work center and choose the Payment Monitor view. 2. In the list, select the required credit card payment with the status Ready for Transfer that was initiated in the Receivables work center. You can select more than one payment if you want to settle several at the same time. To speed up the search process, you can use the extended search function. For this, click Advanced and enter your search criteria. For example, in the Payment Method field, select Incoming Payment Card Payment and in the Show field, select Ready for Transfer. Click Go . Only payments that correspond to the selected search criteria are displayed. 3. Click Actions for Credit Cards and then Settle. The system generates a message that is sent to the service provider. The status of the payment changes to In Transfer. Once the settlement data has been transferred to the service provider and from the service provider to the clearing house, which agrees that the payment will be made, the settlement status changes to Accepted in the Details section of the screen under Current Settlement Data. Alternatively, in order to settle an individual credit card payment, you can also go to the Payment Monitor view and open the corresponding payment. On the credit card payment screen, click Start Settlement . 4. The clearing house will credit (or debit) the total amount of the credit card payments bundled in the message to your bank account. The bank statement will then show you that the payment has been received. Note that the bank statement will show only one item representing the total amount of all the credit card payments that were settled together. If you have arranged for the clearing house to send you a statement listing all individual credit card payment items, you can check whether the total amount agrees with these items. You Enter a Bank Statement Containing Credit Card Payments
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Select New Bank Statement from the Common Tasks view of the Liquidity Management work center, if you want to manually enter bank statement data that has been submitted in paper form. 1. In the Create and Edit Items step, click Add Row and select Incoming Credit Card Payment (or, if your credit memos have resulted in an outgoing payment, select Outgoing Credit Card Payment from the Payment Method drop-down list). 2. Enter the credit card payment amount (from the clearing house) that is printed on your bank statement, then post the bank statement.
Select the File Management view from the Liquidity Management work center, if you want to enter bank statement data that has been submitted electronically. 1. Choose Inbound Files to upload a locally saved bank statement file to the system. For more information, see File Management Quick Guide [282]. 2. Check the bank statement data in the Bank Statements view of the Liquidity Management work center, and then post the bank statement. The system creates a payment allocation task for the credit card payments, because it cannot align the total amount from the bank statement with the individual credit card payments. This task must be completed before creating a liquidity forecast.
For more information, see Bank Statements [253]. For more information on how to confirm payments with your bank statement, see Confirm Payments with Your Bank Statement You Process the Credit Card Payment from Your Bank Statement in the Payment Allocation If you want to edit the payment allocation immediately after posting the bank statement, click on the Post-process bank statement link on the released bank statement. On the bank statement overview screen, click View All . In the Transactions section of the screen, click on the Required link in the Postprocessing column for the relevant payment from the clearing house. This takes you to the Payment Allocation screen. 1. The Payment Assignment tab displays the credit card payments with the status In Transfer and Pre-Confirmed by default. Select all items contained in the payment (and shown on the clearing house statement) and copy them to the lower screen area using the down arrow. You can identify them using the settlement number in the External Reference column. If your service provider is able to generate electronic clearing house statements, then you can also complete this step more quickly by clicking on Actions and selecting Import Clearing House Statement from the drop-down menu. For more information on how to upload clearing house statements, see Upload a Clearing House Statement. If your service provider is not able to generate an electronic clearing house statement, we recommend you ask for a printed statement containing the individual credit card payment items. You can use this statement to find the items that exist in the system. 2. On the Other Allocation Tab, you need to enter the service providers charges and assign a G/L account. The Open Amount should now be zero. When you are finished, click Post .
See Also
About Credit Card Service Provider Computop About Credit Card Service Provider Paymetric
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2.3.4 Customer Remittance Advices Overview

A remittance advice is exchanged between the payer and payee. It contains detailed payment information for a specific date relating to one or more invoices. Thus the remittance advice announces a payment transaction. Both the buyer and seller can send the message. The payment advice informs when and how much of which invoice will be paid. It contains detailed information about a payment that is required to allocate and clear open items. The advice items contain the following entries: For outgoing remittance advices:

Amounts (payment amount and gross amount) and currency Invoice number for the open item
For incoming remittance advices:

Amounts (payment amount and gross amount) Entries for the open item (such as the invoice number)
The aim of the message is to automate and speed up the clearing of open items. Depending on the company policy, customers send a remittance advice for each payment or only for payments that combine multiple invoices. In this way, you are notified about which open items the customer clears with the payment. This makes it easier for you, the payee, to assign the payment to the open item. If you have given customers authorization for direct debit with mandate, they can send a remittance advice to announce the direct debit from the account and to explain which open items this payment clears. You edit remittance advices in the Payment Management work center. The following applies to the remittance advice business process:

A remittance advice is a message about a payment transaction. A remittance advice can refer to one or more business transactions, but to only one payment. A remittance advice can contain a note to a payment method, for example, a bank transfer or check. An individual remittance advice can refer to both national and international payment processing. Each remittance advice refers to only one payment date. Depending on agreements, a remittance advice can be created by and for each business partner.
The system prints outgoing remittance advices when performing the payment media run, if the relevant field was selected in the payment media run and if certain requirements have been met (see the Creating Customer Remittance Advices section). Incoming remittance advices are assigned to payments in the system as standard and you do not need to make any extra settings. Incoming remittance advices that are due in the future are included in the liquidity forecast without any extra settings. To view the liquidity forecast, in the Liquidity Management work center, open the Liquidity Forecasts view.
Prerequisites
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Configuration
Scoping Under Questions Cash Flow Management , you have made the basic settings for your payment processes.
For outgoing remittance advices: You have configured the note to payee in case a remittance advice needs to be printed. For incoming remittance advices: Remittance Advice Deletion Period (optional) You specify how long the advice data should be saved in the system.
Clearing Strategies (mandatory) The settings that you make here also apply to remittance advices. You specify the settings for the tolerance limits and when manual clearing or manual allocation should take place.
Features Entering Remittance Advices Received from Customers

You copy all the incoming remittance advices manually or electronically into the system. You enter received remittance advices in the Payment Management work center in the Remittance Advices view.
Automatic Allocation of Received Remittance Advices to Incoming Payments

The system supports an automatic allocation of received remittance advices to open invoices and related incoming payments. After you have transferred remittance advices to the system, the system performs an automatic allocation to the related incoming payments using the advice number. Therefore, you no longer need to search for open items or manually assign them to incoming payments. This does not result in any posting in the system. The system only changes the status of the invoice to Ordered. Incoming payments are not cleared with open items until clearing. If the system finds differences when allocating the advice to incoming payments that affect the invoice amount or invoice date, it displays these differences. The system also shows remittance advices that cannot be assigned to any invoice. To display a list of remittance advices, in the Payment Management work center, choose Payment Allocation.
Creating Customer Remittance Advices

If multiple invoices of a customer are debited by direct debit, the system automatically creates a remittance advice when you use the payment media run. This happens if this was specified in the master data or the predefined space for the note to payee of the payment method is not sufficient to represent the explanations on the individual invoices. The system does not save remittance advices sent to customers. However, you can print advices as often as you want. You can create remittance advices for each payment or only for selected payments:
For each payment You define whether remittance advices are to be created for payments in the master data of the customer. To activate the creation of a remittance advice for each payment for which you have authorization to debit the invoice amounts from the customer's account by direct debit with mandate, proceed as follows: 1. In the Receivables work center, open the Customers view and the Customers subview.
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2. Select the customer for whom you want to make this setting. 3. Choose Edit Financial Data.
4. Under Advice Control, select the Remittance Advice Required checkbox. You must make these settings for each customer individually.
For payments where the predefined space for the note to payee is not sufficient: The remittance advice is created with the payment medium. For selected payments: If you only want to create a remittance advice for payments of individual invoices or payments for multiple invoices without having defined this in the master data, proceed as follows: 1. In the Payment Management work center, open the Payment Monitor view. 2. Select the required payments. 3. Click Create Remittance Advice . The system accesses the invoice data during creation. The new advice status of the payment Issued is displayed in the detail area of this screen under Remittance Advice Data.
Submitting a Customer Remittance Advice

You can submit outgoing remittance advices electronically if you have made the appropriate settings in configuration and for master data. For more information, see Electronic Submission of Outgoing Remittance Advices [65].
Generating a Customer Remittance Advice

To print customer remittance advices or send them electronically if the customer has given you authorization for direct debits, proceed as follows: 1. In the Payment Management work center, open the Periodic Tasks view and the Payment Media Runs subview. 2. Choose New Payment Media Run. The New Payment Media Run screen appears. 3. Fill the relevant fields on the New Payment Media Run screen and select the Including Payment Advice checkbox. Save your entries. 4. Choose Set to Active . The remittance advices are generated automatically during the next payment media run. You can generate an outgoing customer remittance advice more than once. 5. To schedule the printing or electronic sending of remittance advices and thus to do this at specific times on a recurring basis, choose Schedule . The Schedule Job screen appears. Enter the data required for the scheduling and save your entries.
Viewing the Status of a Customer Remittance Advice

You can view the advice status for each outgoing payment in the Payment Management work center in the Payment Monitor view. The status is displayed in the details under Advice Data. In the Advice Required field, the system also displays whether a remittance advice is required, if this was specified in the master data of the customer or the space for the note to payee was not sufficient.
Viewing the Remittance Advice History

If you want to display a customers remittance advice history, proceed as follows: 1. In the Payment Management work center, open the Remittance Advices view.
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2. To display the payment of a specific customer, choose the filter function and enter the customer in the Payer/Payee ID field. All advices of the selected customer are displayed. You can sort the advices according to their status (for example, released, canceled, confirmed).
2.3.5 Electronic Submission of Outgoing Payment Advices

You can send outgoing payment advices to your customers or suppliers using an electronic interface as opposed to printing them in paper form. It is possible to do this if both you and your suppliers or customers have made the required system settings for this interface. Your company wants to dispense in future with printed payment advices that were previously sent to a supplier in the mail. Instead, you want to send the payment advice to the supplier in electronic form with information about the payments you have requested. In this case, your company, in its role of the customer, is the sender, and your supplier is the receiver of the payment advice.

Scoping Configuration settings are normally performed by a key user. If you do not have the required authorization, contact your key user. Electronic Submission of Outgoing Payment Advices is activated in your solution configuration. To find this business option, go to the Business Configuration work center and choose the Implementation Projects view. Select your implementation project and click Edit Project Scope . In the Scoping step of the project, ensure that Payment and Liquidity Managementis selected within Cash Flow Management. In the Questions step, expand the Cash Flow Management scoping element, select Payment and Liquidity Management and answer the questions related to Electronic Submission of Outgoing Payment Advices.
Master Data
Both the sending and the receiving company of the payment advice must have their own standard form of identification, such as a unique company D-U-N-S number (Data Universal Numbering System), which is assigned to companies by Dun & Bradstreet. This ID is entered by both parties in the master data and required in each case by the system to uniquely assign the electronic exchange of data between two companies. The following IDs can be used as a standard form of identification:

German customs number D-U-N-S number Global location number Standard Carrier Alpha Code (for freight companies) Common Tasks Edit Org
To enter a standard ID, go to the Organizational Management work center and choose
Structures . On the General tab, you can enter your standard ID using the External Business Identifiers link. Both the sender and receiver need to agree upon a standard ID to use and communicate this to each other to be able to activate the electronic interface.
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The following procedure uses the D-U-N-S number as the standard ID.
1. Data Retrieval and Entry of the D-U-N-S Number for Payment Advice Sender: On the Sender Side: Navigate to the Payables work center and choose Common Tasks Show Organizational Structures . On the Organizational Structure: <Name of Company> screen, the General tab displays the D-U-N-S number. You inform the receiver of this number.
On the Receiver Side: Navigate to the Receivables work center and choose Customers. Select the appropriate customer and choose Edit General. On the Corporate Account: <Name of Company> screen, enter in the D-U-N-S-Number field the D-U-N-S number that you received from the sender. Choose Save.
2. Data Retrieval and Entry of the D-U-N-S Number for Payment Advice Receiver: On the Receiver Side: Navigate to the Receivables work center and choose Common Tasks Show Organizational Structures . On the Organizational Structure: <Name of Company> screen, the General tab displays the D-U-N-S number. You inform the sender about this number.
On the Sender Side: Navigate to the Payables work center and choose Suppliers. Select the appropriate supplier and choose Edit General. On the Supplier: <Name of Company> screen, enter in the D-U-N-S-Number field the D-UN-S number that you received from the sender. Choose Save.
Process Flow
For your company to be able to send payment advices electronically, you need to ensure that both the XML output channel is set and that the interface is set up, also on the supplier side, as described below.
Setting the Electronic Submission of Payment Advices

The function for submitting payment advices electronically needs to be activated on both the side of the sender and the receiver. The following sections explain how you make these settings. Setting the Communication Arrangement on the Receiver Side 1. Go to the Application and User Management work center and choose Management Communication Arrangements . Choose New . Input and Output
2. On the New Communication Arrangement screen, enter the required data including your customer in the Business Partner ID field. Enter Dun & Bradstreet Number under the Identification Type. Under Selected Service, choose the following values: Business Document: Remittance Advice Inbound

Collaboration Template: Remittance Advice (Inbound Using SAP ESD) Collaboration Template Type: XI Inbound
In the Security section in the Authentication field, choose the value SSL Client Certificate. Alternatively, choose the User Name/Password value and edit the User Name field accordingly. 3. The system generates a URL of which you inform the sender. This is displayed under Technical Settings. 4. Choose Save. The configured interface now enables you to receive payment advices in electronic form, in which you are notified electronically about payment requests.
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Setting the Communication Arrangement on the Sender Side 1. Go to the Application and User Management work center and choose Management Communication Arrangements . Choose New . Input and Output
2. On the New Communication Arrangement screen, enter the required data including your supplier in the Business Partner ID field. In the Identification Type field, enter Dun & Bradstreet Number. Under Selected Service, choose the following values: Business Document: Remittance Advice Outbound

Collaboration Template: Remittance Advice (Outbound Using SAP ESD) Collaboration Template Type: XI Outbound
Under Technical Settings, enter in the URL field the URL that the recipient of the payment advice provided you with. In the Security section in the Authentication field, choose the value SSL Client Certificate. In the User Name field, choose ByDesign System Key, which then enables you to use the Download Certificate function displayed alongside. Alternatively, choose the User Name/Password value and edit the User Name field accordingly. Choose Save. 3. Navigate to the Payables work center and choose Suppliers. Select your supplier and choose Edit Addresses. On the Communication tab, choose Collaboration. 4. In the Remittance Advice Outbound field, choose XML and then Save. You can now initiate payment transactions using the corresponding supplier invoices, and send payment advices to your suppliers electronically with notification of your payment requests. If the recipient of the payment advice does not use SAP Business ByDesign but does use a web service, the recipient can inform the sender of the URL provided by this web service. The payment advice can then be submitted using this URL.
See Also
Supplier Payment Advices [67] Enter a Remittance Advice [235]
2.3.6 Supplier Remittance Advices Overview

A remittance advice is exchanged between the payer and payee. It contains detailed payment information for a specific date relating to one or more invoices. In this way, the remittance advice announces a payment transaction. Both the buyer and seller can send the message. The remittance advice informs when and how much of which invoice will be paid. It contains detailed information about a payment that is required to allocate and clear open items. The advice items contain the following entries: For outgoing remittance advices:

Amounts (payment amount and gross amount) and currency Invoice number for the open item
For incoming remittance advices:
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Amounts (payment amount and gross amount) and currency Entries for the open item (such as the invoice number)
The aim of the message is to automate and speed up the clearing of open items. Depending on company policy, suppliers receive a remittance advice for each payment or only for payments that combine multiple invoices. You create a remittance advice to inform the payee which open items are cleared with a payment. This makes it easier for the payee to assign the payment to the open item. If you have given suppliers authorization for direct debit with mandate, they can send a remittance advice to announce the direct debit from the account and to explain which open invoices this payment clears. You edit remittance advices in the Payment Management work center. The following applies to the remittance advice business process:

A remittance advice is a message about a payment transaction. A remittance advice can refer to one or more business transactions, but to only one payment. A remittance advice can contain a note to a payment method, for example, a bank transfer or check. An individual remittance advice can refer to both national and international payment processing. Each remittance advice refers to only one payment date. Depending on the agreements made, a remittance advice can be created by and for each customer or supplier.
The system prints remittance advices when performing the payment run, if the relevant field was selected in the payment media run and if certain requirements have been met (see the Creating Supplier Remittance Advices section). Incoming remittance advices are assigned to payments in the system as standard and you do not need to make any extra settings. Incoming remittance advices that are due in the future are included in the liquidity forecast without any extra settings. To view the liquidity forecast, in the Liquidity Management work center, open the Cash Position and Forecast view.
Prerequisites
You have made the following predefined settings in configuration and for master data: Scoping Under Questions Cash Flow Management , you have made the basic settings for your payment processes.
For outgoing remittance advices: You have configured the note to payee in case a remittance advice needs to be printed. For incoming remittance advices: Clearing Strategies The settings that you make here also apply to remittance advices. You specify the settings for the tolerance limits and when manual clearing or manual allocation should take place.
Features Entering Remittance Advices Received from Suppliers

You copy all the incoming remittance advices manually or electronically into the system. You enter received remittance advices in the Payment Management work center in the Remittance Advices view.
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Creating Supplier Remittance Advices

If multiple invoices of a supplier are paid with an outgoing payment, the system automatically creates a remittance advice when you use the payment media run. This happens if this was specified in the master data or the predefined space for the note to payee of the payment method is not sufficient to represent the explanations on the individual invoices. The system does not save remittance advices sent to suppliers. However, you can print advices as often as you want. You can create remittance advices for each payment or only for selected payments:
For each payment You define whether remittance advices are to be created for payments in the master data of the supplier. To activate the creation of a remittance advice for each payment, proceed as follows: 1. In the Payables work center, open the Suppliers view and the Suppliers subview. 2. Select the supplier for whom you want to make this setting. 3. Choose Edit Financial Data.
4. Under Advice Control, select the Advice Required checkbox. You must make these settings for each supplier individually.
For payments where the predefined space for the note to payee is not sufficient: The remittance advice is created with the payment medium. For selected payments If you only want to create a remittance advice for payments of individual invoices or payments for multiple invoices without having defined this in the master data, proceed as follows: 1. In the Payment Management work center, open the Payment Monitor view. 2. Select the required payments. 3. Click Create Remittance Advice . The system accesses the invoice data during creation. The new advice status of the payment Issued is displayed in the detail area of this screen under Remittance Advice Data.
Submitting a Supplier Remittance Advice

You can submit outgoing remittance advices electronically if you have made the appropriate settings in configuration and for master data. For more information, see Electronic Submission of Outgoing Remittance Advices [65].
Generating a Supplier Remittance Advice

To print supplier remittance advices or send them electronically, proceed as follows: 1. In the Payment Management work center, open the Periodic Tasks view and the Payment Media Runs subview. 2. Choose New Payment Media Run The New Payment Media Run screen appears. 3. Fill the relevant fields on the New Payment Media Run screen and select the Including Advice checkbox. Save your entries. 4. Choose Activate . The remittance advices are generated automatically during the next payment media run. You can generate an outgoing supplier remittance advice more than once. 5. To schedule the printing or electronic sending of remittance advices and thus to do this at specific times on a recurring basis, choose Schedule . The Schedule Job screen appears. Enter the data required for the scheduling and save your entries.
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Viewing the Status of a Supplier Remittance Advice

You can view the advice status for each outgoing payment in the Payment Management work center in the Payment Monitor view. The status is displayed in the details under Advice Data. In the Advice Required field, the system also displays whether a remittance advice is required, if this was specified in the master data of the supplier or the space for the note to payee was not sufficient.
2.3.7 Point-of-Sale Transaction Processing Overview

The Point-of-Sale Transactions view enables you to process sales transactions and cash transactions from an external system. An external sale is typically a business transaction that is performed at the point of sale, and subsequently entered in an external (remote) system before being transferred at a point later in time to the SAP Business ByDesign system. A cash transaction is the transfer of cash from one point-of-sale device to another with the external system. If a sales transaction or cash transaction is complete and consistent, it is automatically processed by the system and forwarded to Financial Management. However, should the sales transaction or cash transaction be incomplete or inconsistent, you can use the Sales Transactions subview and Cash Transactions view to receive, analyze, and process the sales or cash transaction data. You can then display and correct the data before it is released to Financial Management. If required, you can use the Sales Summaries subview to check for missing sales transactions by viewing sales summaries that are periodically sent by the external system. You can access the Sales Summaries subview from the Customer Invoicing work center under Sale Summaries. For more information, see Check a Sales Summary. Note that a customer can pay for a sales transaction (purchase) using cash, credit card, or invoice (the customer receives an invoice that is created in the external system). If a customer returns a sold item to the external sales partner, a new sales transaction will be sent containing a sales item with associated return reason code, and negative amounts and quantities. The procedure used to process the sales transaction is exactly the same as that for a sales transaction containing positive amounts and quantities. Point-of-Sale Transactions processing supports the sale and redemption of gift certificates.
A sales transaction can originate from one of the following distribution channels:

Internet Box office Call center Direct sales
Prerequisites
Configuration settings are normally performed by a key user. If you do not have the required authorization, contact your key user.
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You have obtained a written agreement with SAP or a written agreement between the customer and an SAP approved third party solution provider for this particular functionality, as it is not included in the SAP Business ByDesign license. Point of Sales Transactions are enabled in your solution configuration. To find this business option, go to the Business Configuration and choose the Implementation Projects view. Select your implementation project and click Edit Project Scope . In the Scoping step of the project, ensure that the Point-of-Sale is selected within Customer Invoicing. In the Questions step, expand the Sales scoping element and select Customer Invoicing. Select Point-of-Sale and answer the questions related to Point-of-Sale integration. Verify that all the required master data has been created, for example: Account data Account data must be regularly synchronized between the external (remote) system, and the SAP Business ByDesign system.

Petty cash Clearing house Clearing house account G/L accounts for revenues Projects and corresponding tasks for events that are mapped by the external system Payment terms Credit card data for customers (if needed) Bank account data for the representation of accounts with online payment services (if needed)
Process Flow
Scenario 1: Sales Transactions 1. The customer makes a purchase from an external distribution channel. The following standard purchase variants are available: Purchase using a cash payment

Purchase by credit card Purchase by invoice Purchase by credit card without customer data and other payment cards Purchase using an online payment service Mixed purchase. For example, using a combination of credit card and cash payment
2. The external system starts a batch upload and sends the data to Point-of-Sale Transaction Processing. 3. Point-of-Sale Transaction Processing does one of the following: If the sales transaction data is inconsistent, the sales transaction is not automatically released, and manual correction of the data is required before releasing to Financial Management. For more information about manual correction, see Correct and Release a Point-of-Sale Transaction.
If the sales transaction data is consistent, it is automatically released to Financial Management. For more information, see Point-of-Sale Transaction Processing in Financial Management.
Scenario 2: Cash Transactions 1. The cashier makes a cash transfer from one petty cash to another, for example, from the cash register to the main safe, and enters the transfer amount in the point-of-sale device.
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2. The external system starts a batch upload and sends the data to Point-of-Sale Transaction Processing. 3. Point-of-Sale Transaction Processing does one of the following: If the cash transaction data is inconsistent, the cash transaction is not automatically released, and manual correction of the data is required before releasing to Financial Management. For more information about manual correction, see Correct and Release a Cash Transaction.
If the cash transaction data is consistent, it is automatically released to Financial Management.
See Also
Point-of-Sale Transactions Quick Guide
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3 Payables
3.1 Business Background
3.1.1 Open Items Payables Overview
You can display open item lists for supplier accounts. Open items are posted open invoices for goods and services or credit memos that were not yet paid. With the lists of the open items of suppliers of your company, you can monitor the dates of outgoing payments to avoid interest on arrears and use cash discounts. Open payments are also displayed in the open item list. In addition, you get an overview for which supplier accounts you still need to edit open items.
Prerequisites
To display open items, you must have already entered and posted a supplier invoice in the system. If you have not assigned a company to a supplier when you create the master data, the system attempts to do this automatically with the first posted invoice. You can also assign the company yourself. To do this, proceed as follows: 1. In the Payables work center, open the Suppliers view and the Suppliers subview. 2. Select the appropriate supplier and choose Edit A dialog box appears. 3. Choose the Payment Data area. 4. You can use Add Row to create a new supplier account and enter the company. 5. Set up the account determination groups. For more information, see Business Configuration of Account Determination for a Business Transaction. Financial Data.
View of the Lists of Open Items

To get an overview of your open items, select the Reports view in the Payables work center. You find the following reports in this list that display information about the open items to your suppliers:
Open Item List - Suppliers The report displays the open items for each supplier for a specific key date. Item List - Suppliers The reports displays all items - open, cleared, and partially cleared - for each supplier for a specific period. You can also only display the open items of your supplier for a selected period. Aging List for Payables This report displays the overdue open items of your suppliers, structured by how long they are overdue in days. The items that are not due yet are also displayed in total. Forecast List for Payables This report displays for each supplier your open payables for which the due date is after the specified key date and lies in the future. In this way, you can get an overview of the outgoing payments to be made.
SAP Business ByDesign FP3.5 Payables
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The reports take the data from the register for trade receivables and payables, replicate this data in a separate database, and import the data according to your selected report profile. Once you have selected the report, you can save different queries to standardize repetitive activities. For example, to create the Open Item List - Suppliers report, you must enter the company, currency, key date, and conversion date of the display currency. If you leave the Supplier entry field empty, the report selects all suppliers. The reports Aging List for Payables and Forecast List for Payables require that you also enter the aging/forecast analysis period. You also have the option of selecting a specific supplier if you only want to display the open items of a specific supplier. In the Item List -Suppliers report, you can use the status to specify whether only the cleared, partially cleared, or open items should be displayed. If you have saved a query as a selection variant, it appears for selection on the same screen in the Available Variants list. You can change and save a selected selection variant if you want to copy the changes for the existing selection variant. If you want to save the query under a new name, choose Save As. This saves the new query as a selection variant. The Payment Statistics - Suppliers report is also provided to display open items. In addition to the option of displaying open items in a report, you can also display the open items of a specific supplier using the Supplier Account Monitor. For more information, see Supplier Account Monitor [74].
See Also
Business Configuration of Account Determination for a Business Transaction Supplier Account Monitor [74]
3.1.2 Supplier Account Monitor Overview

The supplier account monitor provides you with an overview of your payables to your suppliers, for example to check which invoices have to be paid by your company in the next few days. You can also use it when dealing with supplier inquiries or clearing open items in an account. It also provides you with an overview of your payables to your employees. This enables you to check which expense reports are to be paid, for example. To call up the supplier account monitor, proceed as follows: 1. In the Payables work center, open the Suppliers view, then the Supplier Accounts subview. 2. Select the appropriate supplier and choose View . (To view an employee's account, use the filter to show employees, select the employee, and choose View .) The following tab pages are available in the supplier account monitor:
General Data Here you can view the supplier's address, open item totals in the transaction currency, and valuated balances in the company currency. You can also view accounting data, such as the company currency or the default set of books. You can access the customer account if you have defined the roles of both customer and supplier in the master data records. Trade Payables Invoices/Payments Here you can view all the transactions made on a particular supplier account. You can also create manual payments and start the manual clearing of payments. You can filter the invoices, credit memos, and payments according to their status as follows:
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Open Items shows open items and partially cleared items. Cleared Items shows cleared items and canceled items. All Items shows all items.
You can choose whether to include statistical items, such as down payment requests and bill of exchange requests, in the display. The information about the items is presented in table format and includes: status, external reference, document type, document date, net due date, posting date, open amount in transaction currency, and clearing ID. In the detail area below the table, additional information is displayed about the item selected in the table. This includes the amount in the transaction currency, the cash discount amount, the payment terms and due dates, the payment method, and payment block details. The (optional) columns Document Amount in Transaction Currency or Cleared Amounts may show a sum that is not equal to zero. This means that the sum of the payments and credit memos does not equal the sum of the invoices. This happens when an item is transferred to another account or a discount is taken.
Trade Payables Postings Here you can view all the transactions made on a particular supplier account within a specified period. The display also includes opening and closing balances for the period in question. You can choose to include journal entries that are not relevant for the general ledger in order to explain open item amounts. It is also possible to sort according to open item reference ID in order to view associated debit and credit entries together. Changes Here you can view the change history for a particular supplier account. Reports Here you can run reports on balances, as well as access reports on aging and forecasts for the selected supplier.
Features Line Item Details

In the line item details, you can see the status, due date, amount, cash discount amount, clearing document ID, and Created On date, as well as other information for each invoice, credit memo, or payment. You can also view all the journal entries related to this item. For items that have not yet been included in any clearing or payment processes and have the status Open, you can make changes to cash discount terms or payment method/block information.
Split Items
If there is only a partial payment for an invoice that leads to a partial clearing of the invoice, the system creates split items for this invoice with split item IDs. Each of these split items has its own status (Open or Cleared). An invoice that is only partially cleared therefore has precisely one open split item.
New Charge/Credit
You can use this function to create a new open item for which an invoice does not currently exist, for example, to portray fees or rental payments. You might enter an item for fees and then clear it once the fees have been paid, for example.
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Manual Clearing
The manual clearing function on the Invoices/Payments subtab of the Trade Payables tab enables you to manually clear supplier payments with outstanding invoices if the system was not able to perform clearing automatically. You can also clear credit memos with invoices or outgoing payments from the supplier (for example, refund by bank transfer or other refunds) with credit memos. When you perform clearing, the balance of the selected items may not result in zero. Differences can be written off or kept as remaining open items, which can be cleared later with future payments. To start manual clearing, proceed as follows: 1. Select the appropriate invoices and choose Clear Manually . The New Manual Clearing screen appears. You see the Open Items table. The system checks whether the items are already in clearing (whether a payment proposal has already been created for these items). The available items are displayed for editing. 2. Select the relevant open items and choose Match Items . You see the total balance of the selected items in the upper area of the screen. If you use the function for splitting open items, you can use the supplier account monitor to perform manual clearing only (not automatic). The items have the same external reference and must therefore be cleared manually and included in separate clearings.
Manual Payment
The manual payment function ( Pay Manually By ) on the Invoices/Payments subtab of the Trade Payables tab enables you to pay invoices or credit memos, for example by check, bank transfer, or direct debit. The payment methods available are based on your definition in the supplier master data.
Underpayment
If a difference arises because the payments made are smaller than the invoice amount and lead to a miscellaneous operating income, you can represent this as follows:
You can distribute the difference amount to the selected items together: 1. Choose Clear Manually . 2. Choose Apply Discount or Credit . 3. Enter the amount and reason. The system distributes the complete amount of the difference to the items.
You can distribute the difference amount to selected items individually: 1. Choose Clear Manually . 2. Select the appropriate item in the table. 3. Choose Additional Discounts and Credits. 4. Choose Add Row. 5. Enter the amount and reason.
The precise behavior is also dependent on the settings made for the clearing strategy in Fine-Tuning. The system performs the tax consolidation associated with the underpayment automatically.
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Overpayment
If a difference arises from an outgoing payment that is greater than the invoice amount (for example, when you have granted the collection procedure to a supplier who has collected too much), you can assign the total payment amount to the supplier account and leave the amount on the supplier account as an on account payment. If the system was able to allocate payments to the open invoices based on invoice references and clearing has taken place, the system still creates a task for payment clearing in the event of overpayments. This is dependent on the settings for the clearing strategy in Fine-Tuning. You have the following options for handling the difference:
In the Payables work center in the Payment Clearing view, you can leave the remaining balance as an on account payment. You can contact your supplier and agree a refund for the overpaid amount. You can clear the difference amount manually: 1. Choose Clear Manually . 2. Select the relevant items. 3. Choose Apply Discount or Credit and enter a reason for the difference and the amount. The system does not make any tax adjustments with respect to the overpaid amount. To make a tax adjustment for the overpaid amount, you use the Manual Tax Entries view of the Tax Management work center.
Reset Clearing
You can reset clearing, for example, if an invoice has been allocated to the wrong payment and then cleared. To do this, proceed as follows: If you need to cancel a supplier invoice that has already been paid, first reverse the clearing in the Payables work center then cancel the invoice in the Supplier Invoicing work center. If you first cancel the supplier invoice in the Supplier Invoicing work center, the original clearing still exists and the system generates a new open item (reversal document). If you have already transferred the source invoice manually to another account, a reversal item is displayed on the original account. Transfer the reversal item in the same way as the source invoice. Then you can clear the source invoice with the reversal document. For more information, see Canceling a Supplier Invoice [52]. 1. In the Supplier Account Monitor, click Invoices/Payments and filter for cleared items. 2. Select the item for which you want to undo clearing and choose Clearing Document . 3. Choose View All . You see a list with the clearing documents for this item. 4. Choose Reset Clearing . 5. Enter a cancellation date and document description (if desired). 6. Choose OK . The item is no longer cleared and is displayed with the status Open or Partially Cleared.
Clearing When Canceling an Invoice

If you create a partially or completely-cleared invoice, or an invoice with reference to a down payment, the system automatically clears part of the invoice. Typically, the invoice remains partially open, and the down payment is cleared.
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However, both the invoice and down payment can be partially cleared, depending on your choice of amounts. If you cancel this invoice, the system creates a cancellation invoice. Furthermore, a cancellation document is created in the payables and receivables register. You now have the following options for clearing:
Reverse clearing for the invoice in the supplier account monitor and then clear the invoice manually with the cancellation invoice. The invoice and cancellation invoice then have the status Cleared and the down payment has the status Open. If you would rather not involve the clearing document for the invoice, possibly because you have defined a cash discount or other deductions for additional documents that also need to be cleared, you can use the cancellation invoice to clear other open items (in the same way as for a credit memo). If these considerations are not applicable, and if there are no further items available for clearing, you can clear the repayment once you have received the payment from the supplier. For more information, see Down Payments Made in Financials [81] and Down Payment Request Processing for Supplier Invoices.
Other Functions
You can also do the following in the Invoices/Payments subtab of the Trade Payables tab:

Make single or multiple repostings of payments or invoices Transfer all items to another supplier account Split open items You can split a payment between different reconciliation accounts, for example, to portray a security deposit for a house purchase. Export the details of a supplier account to Microsoft Excel Set or reset payment blocks The payment block only applies to payments that are triggered by your company. Incoming payments are not affected by this. The payment block does not result in a delivery block.
Integration
If you have a supplier who is also a customer, you can also see them in the customer account monitor in the Receivables work center. You must create the master data of this business partner twice. For more information, see Business Partners.
See Also
Payment Allocation and Clearing [188]
3.1.3 Cash Discounts for Payables in Financials Overview

A cash discount can be applied to the payment of a supplier invoice. This can be done automatically or manually. The system automatically posts the cash discount deduction.
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Fine-Tuning Configuration settings are normally performed by a key user. If you do not have the required authorization, contact your key user. Cash Discounts for Payables in Financials is activated in your solution configuration. To find this activity, go to the Business Configuration work center and choose the Implementation Projects view. Select your implementation project and click Open Activity List . Select the Fine-Tune phase, then select Cash Discounts for Payables in Financials from the activity list.
You need to define the payment terms. To do this, choose Terms .
General Business Data
Suppliers
Edit Payment
There needs to be an account for Deducted Cash Discounts and it needs to have been entered in your financial reporting structures and assigned in account determination for the business transaction Cash Discount for Payment/Discount. Choose Financial and Management Accounting Chart of Accounts, Financial Reporting
Structures, Account Determination .
You need to have defined your payment strategy. To do this, choose Strategy .
Payment
Automatic Deduction of a Cash Discount

A cash discount can be automatically determined by the system and deducted when a supplier invoice is paid. The cash discount is determined using the following data:

Payment terms for each supplier: Payment terms have been assigned in the master data of the relevant supplier. Payment term for each invoice: Payment terms were assigned when the supplier invoice was entered. If payment terms exist for a supplier invoice, the system always applies these terms and not the payment terms entered in the master data for that supplier. If no payment terms were assigned during invoice entry, the system applies the payment terms for the relevant supplier. Payment Strategy: The payment strategy specifies how the cash discount amount and the payment date are determined from the payment terms. The payment strategy can apply to a single supplier or a company.
The amount of the cash discount and the payment date for a supplier invoice are defaulted in the payment proposal list. You can overwrite the discount amount and the payment date. You find the payment proposal list in the Payables work center under Automatic Payments. For more information on outgoing payments, see Outgoing Payments [11].
Manual Deduction of a Cash Discount

Clear Manually You can enter a cash discount while manually editing an open item in the supplier account monitor. In the Payables work center, choose Suppliers Supplier Accounts and proceed as follows:
1. Select a supplier and choose View . 2. Select the items you require and choose Clear Manually . 3. Enter the required amount in the Cash Discount field of the invoice.
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Payment Proposal List The discount is defaulted in the payment proposal list. You can overwrite the proposal. You find the payment proposal list in the Payables work center under Automatic Payments.
Posting a Deducted Cash Discount

When you pay a supplier invoice, the cash discount is posted using the gross procedure. The input tax is corrected automatically for the payment date of the invoice. For more information, see Discounts: Cash Discounts and Bonuses [339]. How cash discounts are posted depends on whether they are combined with a goods receipt:
Invoice receipt with goods receipt: The cash discount is not posted until GR/IR clearing is performed. For more information, see GR/IR Clearing Run - Cash Discount. Invoice receipt without goods receipt: The cash discount is posted to the original account in the journal entry for the supplier invoice, that is, to the expense account or to the fixed asset.
Cash Discounts for Partial Payments

If an invoice is only partially cleared, the cash discount is calculated and posted to the payment amount. For example: For an invoice of EUR 1,000 with a 3 % cash discount, a partial payment of EUR 97 is made. In addition to this, the system posts the cash discount of EUR 3 proportionately. This results in a clearing amount of EUR 100. If you are processing an externally initiated outgoing payment, and it has been defined in the system configuration that a task will always be generated for underpayments, the item is not cleared and the system creates a corresponding task. The amounts used in the example are proposed automatically for clearing.
Cash Discounts for Clearing Credit Memos

If the payment terms of the credit memo match those of the invoice (for an invoice-relevant credit memo, for example), a cash discount is posted for both the invoice and the credit memo. For example: For an invoice of EUR 1,000 with a 3 % cash discount, and a credit memo of EUR 100 with a 3% cash discount, a cash discount of EUR 3 is calculated for the clearing amount of EUR 100. The cash discount is posted as a negative amount for the invoice and simultaneously as a positive amount for the credit memo, meaning that no cash discount is paid. If the credit memo has no cash discount terms, such as a subsequent bonus credit memo, a cash discount is calculated and posted to the credit memo during manual clearing. For example: For an invoice of EUR 1,000 with a cash discount of 3 %, and a bonus credit memo of EUR 97 without a cash discount, a cash discount of EUR 3 is posted additionally. This results in a clearing amount of EUR 100.
Cash Discounts for Down Payments

During the clearing of a supplier invoice (of EUR 1,000, for example) with a down payment (of EUR 100, for example), the system does not post a cash discount. If the system creates the final payment during the automatic payment run, for example, the system calculates the cash discount for the remaining payment. This is EUR 900 in the example. If you want to apply the cash discount to the total amount of the invoice, then you can choose when processing the payment proposal the supplier invoices for which you have received down payments and adjust the cash discount to the total invoice amount. To view and process a payment proposal, choose Payables Automatic Clearing .
See Also
Supplier Account Monitor [74] GR/IR Clearing
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Outgoing Payments [11] Configuration: Payment Strategies Suppliers Configuration Guide
3.1.4 Down Payments Made in Financials Overview

Before goods are produced or services provided, it is sometimes necessary to make a down payment on an invoice amount. Securing a reservation is an example of a down payment. In such cases, the supplier sends a down payment request, which is entered in the system. The down payment request is displayed in the system in the payables balance as a statistical open item. It is part of the balance confirmation request and can be paid. The amount from the down payment request is not initially posted to accounting, nor is the tax amount initially entered in the tax entries. Instead, this occurs when the payment is made. The down payment can be made manually, or automatically using a scheduled payment run. If the system creates the payment, the tax amounts are posted and the down payment amounts are posted to the corresponding general ledger accounts. Once the final invoice for the total amount is received, the system automatically assigns the total invoice item to the down payment item if the references match. A transfer posting is made from the Down Payments Made account to the Payables account. The tax entry resulting from the down payment made is cancelled and a new tax entry is entered using the amount from the total invoice. For more information on postings for down payments, see Postings for Down Payments (Gross Method) [331].
Prerequisites
The accounts for down payments are provided in the Business Configuration work center in the Activity List view and the Fine-Tune step. To navigate to this step, choose Financial and Management Accounting > Chart of Accounts, Financial Reporting Structures, Account Determination -> Accounts Payable or Accounts Receivable. For more information about account determination, see Business Configuration of Account Determination for a Business Transaction and Reconciliation Accounts.
Process Flow
1. Create Down Payment Request You create a new down payment request in the Supplier Invoicing work center. If a down payment is based on a purchase order defined in the Purchase Requests and Orders work center, you need to enter a down payment request with a purchase order reference (while quoting the relevant purchase order number). If you enter an invoice at a later point in time, the system uses the purchase order number to identify automatically the referenced down payment. For more information, see Editing Down Payment Requests for Supplier Invoices. 2. Display Supplier Account In the Payables work center, in the Suppliers view under Supplier Accounts you can display the down payment request with the status Open. 3. Make a Down Payment You can pay the down payment request manually, or automatically using a payment run. To pay the down payment request manually, go to the Payables work center to the Suppliers and Supplier Accounts views. Your down payment request is displayed in the supplier account monitor with the status Open. You can pay the down payment request manually using the action Pay Manually By <Payment Method> (Pay Manually By Outgoing Check, for
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example). Once you have released the check, you can view the document flow by choosing Outgoing Check -> View All. You see that the check was posted as a down payment made and that a provisional tax amount has been entered. To pay the down payment request using an automatic payment run, go to the Payables work center and the Automatic Payments view. Once the automatic payment run has been performed, the system displays a payment proposal, which contains your down payment request with the status Open. By scheduling a payment run, and depending on your settings in configuration, your down payment request is paid on the due date. . Partial clearing for down payment requests is not supported. Only the full amount can be cleared. 4. Enter Final Invoice In the supplier account monitor, you can see the down payment with the status Open. To enter the final invoice, switch to the Supplier Invoicing work center. For the creation of the final invoice, the system proposes clearing all existing down payments made to the supplier on the Down Payments tab page. Here, you can change the amount of the down payment to be cleared. You can clear any remaining amount with a future invoice from the supplier. 5. Pay Final Invoice Reversing Down Payment Requests, Down Payments, and Total Invoices You can make a down payment request invalid in the Supplier Invoicing work center prior to posting, as long as it has not yet been paid. If you have already made the down payment, you must first reverse clearing in the supplier account monitor. For more information on reversing clearing and on clearing when you cancel an invoice with reference to a down payment, see Supplier Account Monitor [74] and refer to the section on clearing when canceling an invoice with reference to an invoice. Discount Applied to Supplier Invoices with Down Payments During the clearing of a supplier invoice (of EUR 1,000, for example) with a down payment (of EUR 100, for example), the system does not post a cash discount. If the system creates the final payment during the automatic payment run, the system proposes the cash discount amount only for the remaining amount of the invoice. This is EUR 900 in the example. If you want to apply the cash discount to the total amount of the invoice, then you can choose when processing the payment proposal the supplier invoices for which you have received down payments and adjust the cash discount to the total invoice amount. To view and process a payment proposal, choose Payables -> Automatic Clearing. For more information, see Cash Discounts for Payables in Financials [78].
See Also
Postings for Down Payments (Gross Method) [331] Supplier Account Monitor [74] Editing Down Payment Requests for Supplier Invoices Cash Discounts for Payables in Financials [78]
3.1.5 Foreign Currency Remeasurement Overview

If you start the procedure for foreign currency remeasurement, the system automatically makes the relevant postings and subsequently withdraws postings. You can perform foreign currency remeasurement for receivables and payables and for cash in foreign currency. Foreign currency remeasurement is an important part of period-end closing.
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Foreign Currency Remeasurement for Payables and Receivables

Depending on the set of books, the system proceeds as follows for foreign currency remeasurement for payables and receivables: 1. The system selects all open receivables / payables for which the transaction currency differs from the company currency. 2. The system totals the receivables / payables either by business transaction or for all business transactions of a customer. 3. The system determines the key date on the basis of the selection parameters Period and Fiscal Year. The last day of the period or fiscal year is the key date. 4. The system valuates these receivables / payables using the exchange rate valid on the key date and compares the amounts with the amounts that were originally posted. 5. The system generates correcting entries for receivables / payables that show an amount that differs from the amount originally posted. With these correcting entries, the balance sheet reflects the gains and losses resulting from exchange rate fluctuation. The system performs a remeasurement depending on the foreign currency remeasurement method used. For more information on the foreign currency remeasurement method, see Foreign Currency Remeasurement Method. 6. The differences are posted to the receivables / payables account. The offsetting entry is made to a separate expense and revenue account for exchange rate differences. 7. The system reverses this entry on the first day of the new period because it is not required for daily business. If you start this run again using the same parameters, the system determines the change to the previous run, and displays and posts this change. This only affects items that changed between the previous run and the current run. The run only includes open items. If you start the run again, under no circumstances should an item that was previously open in the first run be cleared when the run is repeated. It is important to ensure that the corresponding accounting period is closed for operation postings before starting the run. The foreign currency remeasurement of receivables produces the following posting, for example: Remeasurement
Debit Receivables Exchange Rate Differences from Remeasurement 5000 5000 Credit
Reversal in the New Period

Debit Exchange Rate Differences from Remeasurement 5000 Receivables 5000 Credit
Foreign Currency Remeasurement for Cash

Depending on the set of books, the system proceeds as follows for foreign currency remeasurement for cash: 1. The system selects all open balances for which the transaction currency differs from the company currency. 2. The system totals the balances either by business transaction or for all business transactions of a business partner.
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3. The system determines the key date on the basis of the selection parameters Period and Fiscal Year. The last day of the period or fiscal year is the key date. 4. The system valuates these balances using the exchange rate valid on the key date and compares the amounts with the amounts that were originally posted. 5. The system generates correcting entries for the balances that show an amount that differs from the amount originally posted. With these correcting entries, the balance sheet reflects the gains and losses resulting from exchange rate fluctuation. 6. The differences are posted to the balance account. The offsetting entry is made to a separate expense and revenue account for exchange rate differences. 7. The system reverses this entry on the first day of the new period because it is not required for daily business. If you start this run again using the same parameters, the system determines the change to the previous run, and displays and posts this change. This only affects items that changed between the previous run and the current run. The run only includes open items. If you start the run again, under no circumstances should an item that was previously open in the first run be cleared when the run is repeated. It is important to ensure that the corresponding accounting period is closed for operation postings before starting the run. The foreign currency remeasurement of receivables produces the following posting, for example: Remeasurement
Debit Exchange Rate Differences from Remeasurement 70 Foreign Currency Remeasurement 70 Credit
Reversal in the New Period

Debit Foreign Currency Remeasurement Exchange Rate Differences from Remeasurement 70 70 Credit
3.1.6 Reclassification Overview

If you start the procedure for reclassification, the system automatically posts the corresponding receivables or payables, depending on their remaining terms. To do so, the system automatically creates the relevant journal entries. Reclassification is an important part of period-end closing.
Prerequisites
To enable the system to automatically create the relevant journal entries, you have to have set up the account determination for the reclassification. To find this activity, go to the Business Configuration work center and choose the Implementation Projects view. Select your implementation project and click Open Activity List . Select the Fine-Tune phase, then select the Chart of Accounts, Financial Reporting Structures, Account Determination activity from the activitiy list.
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Under Account Determination choose Accounts Payable for the payables accounts or Accounts Receivable for the receivables accounts. You specify the respective reclassification accounts on the tab Reclassification . As a standard, the account determination for the reclassification contains the default accounts for payables and receivables. For all other accounts, such as accounts for retainages or the accounts you have manually added to your own chart of accounts, you have to specify them separately. For more information on how to set up account determination, see Define Account Determination for Each Subledger. It is possible to leave the field for an account determination group empty. The account in this row then applies to all values of this account determination group (default account). If you have set up account determination for a specific value of this account determination group, this value always takes priority over the default account. In spite of this possibility, we recomment that you always specify the account determination group.
Reclassification for Payables and Receivables

Depending on the set of books, the system proceeds as follows for the reclassification of payables and receivables: 1. Accounts Receivable / Payable The system determines for each debtor and creditor whether it is really dealing with accounts receivable and payable or rather accounts receivable with a credit balance and accounts payable with a debit balance. To do this, the system checks whether the closing balance of a debtor or creditor is on the credit or debit side: If the closing balance is a debit amount, it is characterized under accounts payable.
If the closing balance is a credit amount, it is characterized under accounts receivable.
2. Remaining Terms Depending on whether the debtor or creditor relates to accounts receivable or payable, the system reclassifies the receivable and payable items by the remaining term: For all accounts receivable/payable, the system selects all the receivables and payables for which the remaining term is greater than one year. These receivables and payables are then reclassified on separate G/L accounts. The system provides accounts for remaining terms greater than one year and also greater than five years. The offsetting posting is made directly to the previously used receivables / payables account.
For accounts payable with a debit balance / accounts receivable with a credit balance, the system selects all the available receivables and payables. These receivables and payables are then reclassified on separate G/L accounts, such as debit postings. The offsetting posting is made directly to the previously used receivables / payables account.
3. Reversal of Reclassification Depending on the settings in your business configuration, the reversal of a reclassification run leads to either negative postings or equivalent debit or credit postings. The automatically created journal entries from the original reclassification run are reversed on the first day of the new accounting period, since they are not required for daily business. If you start this run again using the same parameters, the system determines the change to the previous run, and displays and posts this change. This only affects items that changed between the previous run and the current run. The run only includes open items. If you start the run again, under no circumstances should an item that was previously open in the first run be cleared when the run is repeated. It is important to ensure that the corresponding accounting period is closed for operation postings before starting the run.
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Example
Reclassifying payables and receivables can lead to the following postings:
1) Creditor
Creditor 2 has a credit balance of EUR 2,000. This credit balance can by structured by the following remaining terms:

Less than one year: EUR 500 Greater than one year: EUR 1500
Creditor 1: Reclassify Payables

Debit Payables Payables > 1 Year 1500 1500 Credit
2) Debtor
Debtor 1 has a debit balance of EUR 1,000. This debit balance can by structured by the following remaining terms:

Less than one year: EUR 400 Greater than one year: EUR 600
The system makes the relevant transfer postings: Debtor 1: Reclassify Receivables
Debit Receivables Receivables > 1 Year 600 Credit 600
3) Accounts Payable with Debit Balance

Creditor 2 has a debit balance of EUR 200. Creditor 2: Accounts Payable with Debit Balance: Reclassify Creditor's Debit Balance
Debit Payables Accounts Payable with Debit Balance 200 Credit 200
3.2 Suppliers View

3.2.1 Quick Guide for Suppliers (in Payables)
The Suppliers view in the Payables work center provides a central point of access for all the supplier master data related to your accounts payable. You can check transaction and account details for all of your suppliers, and check and release
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as required the supplier balance confirmations that you created in the balance confirmation run. The Suppliers view features three subviews that allow you to access the information and perform the tasks you need:
Supplier Accounts
In this subview, you can display the account balances of your suppliers as well as call up and edit (manually clear, for example) individual payables items on the accounts.
Suppliers
In this subview, you can display, edit, and create supplier master data records. You can also check supplier details, such as their location, main contact person, and contact information.
Balance Confirmation
This subview provides you with a list of proposed balance confirmations that you can check and release so they are sent to your suppliers.
Business Background Supplier Account Monitor

The supplier account monitor provides you with an overview of your payables to your suppliers, for example to check which invoices have to be paid by your company in the next few days. You can also use it when dealing with supplier inquiries or clearing open items in an account. For more information, see Supplier Account Monitor [74].
Suppliers
A person or company from whom or which you purchase goods or services. The supplier is assigned as a role to a person or company. For more information, see Supplier.
Open Items Payables

You can display open item lists for supplier accounts. Open items are posted open invoices for goods and services or credit memos that were not yet paid. With the lists of the open items of suppliers of your company, you can monitor the dates of outgoing payments to avoid interest on arrears and use cash discounts. Open payments are also displayed in the open item list. In addition, you get an overview for which supplier accounts you still need to edit open items. For more information, see Open Items Payables [73]
Down Payments Made in Financials

Before goods are produced or services provided, it is sometimes necessary to make a down payment on an invoice amount. Securing a reservation is an example of a down payment. In such cases, the supplier sends a down payment request, which is entered in the system. The down payment request is displayed in the system in the payables balance as a statistical open item. It is part of the balance confirmation request and can be paid. The amount from the down payment request is not initially posted to accounting, nor is the tax amount initially entered in the tax entries. Instead, this occurs when the payment is made. For more information, see Down Payments Made in Financials [81].
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Tasks Create and Edit a Supplier

1. In the Suppliers subview, choose New then Supplier.
2. Enter the name of the supplier, the address, communication data, and any other information. Enter a note if required. You can check whether a supplier is already entered in the system if you selected this option during scoping in the business configuration. To do this, choose Check for Duplicates . The system also displays any suppliers that might be duplicated when you save the details of a new supplier. For more information, see Business Partner Duplicate Check. 3. To enter additional supplier information, click View All . 4. To return to the Suppliers subview, click Save and Close .
Manual Clearing in the Supplier Account Monitor

For more information on this task, see Supplier Account Monitor [74].
Reverse Clearing in the Supplier Account Monitor

For more information on this task, see Supplier Account Monitor [74].
3.3 Automatic Payments View

3.3.1 Quick Guide for Automatic Payments (Payables)
You can access this view from the Payables work center under Automatic Payments. In this view, you can display all the outgoing payments created using payment runs, as well as manual payments created in the supplier account monitor using Pay Manually By then Other Payment Methods. With the payment run, you create payment proposals, which contain all the due invoices and any cash discounts granted upon immediate payment. You can check the payment proposals, and release, postpone, or cancel the proposed items as necessary. Once you have released an item, the system makes the payment automatically. In this way, you ensure that payments reach your suppliers on time, although not prematurely, enabling your company to make use of any cash discounts.
Business Background Internally Initiated Automatic Outgoing Payments

In your role as an accounts payable accountant, you require functions to process national and international outgoing payment transactions made with suppliers and other creditors. The system makes these functions available in the Payment Management and Payables work centers. When you create a payment, you can specify the payment method
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and other details, such as the house bank account from which to pay, the bank data of the supplier/customer, or the bank processing date. You can also use the Payment Monitor in the Payment Management work center to monitor all payment transactions regardless of status, payment medium, or payee. As the accounts payable accountant for your company, you initiate the automatic creation and editing of outgoing payments in the Payables work center. Here you create a payment run, which is used to generate a payment proposal list based on the payment strategy configured and the selection criteria chosen. Possible selection criteria are:

Company Date of the next payment run; if required, taking account of your configuration settings for the payment strategy Specify this date if you want to perform the payment run once only. If you schedule the payment run to be performed on a recurring basis, the system determines the appropriate date. Suppliers and other creditors Currency Bank processing date Specify the requested payment date (for bank transfers and direct debits only). Depending on working days, the bank may make the payment later. Leave this field empty if you want to schedule the run periodically. Posting date The default posting date is the execution date of the run. Leave this field empty if you want to schedule the run periodically.

For more information, see Internally Initiated Automatic Outgoing Payments [16].
Tasks Approve An Automatic Payment Proposal

The Automatic Payments view in the Payables work center enables you to approve proposed outgoing payments so that your suppliers are paid on time. The system creates a list of proposed payments based on your payment strategy, which is then displayed in this view. For more information on this task, see Approve an Automatic Payment Proposal [90].
Display Payment Proposals

1. In the Automatic Payments view, select a payment and click View Payment Proposals .
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2. In the Payment Proposal Overview: <ID> screen, you can view a list of all the payment proposals created by the payment run execution that includes the selected payment.
3.3.2 Approve an Automatic Payment Proposal Overview

The Automatic Payments view in the Payables work center enables you to approve proposed outgoing payments so that your suppliers are paid on time. The system creates a list of proposed payments based on your payment strategy, which is then displayed in this view.
Procedure
1. In the Automatic Payments view, select a payment proposal with the status In Preparation and click Edit . The Payment: <ID> editor appears. 2. If you want to check the payment information and details on the payee and memo line, view the General tab. 3. Choose the Open Items tab and check the open items. To remove an open item from the proposed payment, deselect it in the Matched column. For detailed information on how to use the Open Items table, see Using the Open Items Table [93]. 4. If the proposed payment is appropriate, click Execute Payment . The payment is then sent for further approval, if necessary. If you want to reject a payment proposal, choose Actions then Void Proposal. Then click Close to close the editor and return to the worklist.
Result
If you click Execute Payment , the payment status changes to Completed.
3.4 Payment Clearing View

3.4.1 Quick Guide for Payment Clearing (Payables)
The Payment Clearing view in the Payables work center enables you to clarify a payable payment, such as a manual outgoing payment for a supplier invoice, either by clearing or by reposting it. The system usually clarifies such payments by clearing automatically. If the system does not find any open items that fit to the payment, or the open items that it does find do not match the open items that are referenced (incorrect document date or invoice amount, for example), it creates a Payment Clearing task. To assist you in matching an outgoing payment with the appropriate open invoice, the system creates clearing proposals that suggest the best match if it is unable to make the clearing itself, based on factors such as the payment amount, due payment date, and payment references. You can simply accept these proposals or you can edit them for a better match. There are several editing methods you can use, such as changing the discounts that should be applied to each invoice, deducting the difference between the invoice and payment amounts, or editing which invoices should be paid by the outgoing payment. The system provides you with a list of different discounts and deductions that you can apply, and it records this information when you apply them. Once the difference between the payment amount and the invoice amount has been eliminated, the outgoing payment can be cleared.
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The Payment Clearing task is complete when the payment is clarified. A payment is considered to be clarified under the following circumstances:

It is applied to open items and cleared. It is reposted to a different customer account or supplier account. The remaining balance is accepted on account. A combination of the above.
If a partial payment is to clear an invoice completely, you can apply additional discount manually to the item in question, or use the action Apply Discount or Credit, which distributes the discount according to the clearing strategy configured. Note that it is not possible to apply such a discount to an overpayment. In the case of an overpayment, you have to accept the overpayment on account and clear it later, for example against a supplier credit item. Your manual payment clearing tasks can also be accessed from the Work view of the Payables work center.
Business Background Cash Discounts for Payables in Financials

A cash discount can be applied to the payment of a supplier invoice. This can be done automatically or manually. The system automatically posts the cash discount deduction. For more information, see Cash Discounts for Payables in Financials [78].
Payment Allocation and Clearing

Payment allocation and clearing are two distinct but related steps involved in payment processing. Payment allocation and payment clearing are necessary processes for both incoming and outgoing payments. The system usually performs both steps automatically. In some cases the system cannot perform these processes and will create manual payment allocation tasks or manual payment clearing tasks that require user involvement. The different situations that can result in these manual tasks are explained here, as is the relationship between payment allocation and payment clearing. For more information, see Payment Allocation and Clearing [188]
Tasks Clear An Outgoing Payment Manually

In the Payment Clearing view of the Payables work center, you can clear outgoing payments manually. Depending on the configuration in your clearing strategy, you can also call up tasks for manual payment clearing in the Work view of the Payables work center or in one of the variants. For more information on this task, see Clear an Outgoing Payment Manually [92].
View Clearing
1. If you want to view the details for payment clearing, select the clearing that you want to display in the Payment Clearing view and click Show Clearing .
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2. In the Clearing Overview: <ID> editor, you can view the parameters set for clearing, such as the remaining balance that needs to be cleared for the entire clearing process to be completed, amounts assigned to other customers and suppliers, accounting data, open items, and the payment amount. You can also clear the outgoing payment manually if required. If you want to clear the outgoing payment manually, click View All and perform the task Clear An Outgoing Payment Manually [92].
3.4.2 Clear An Outgoing Payment Manually Overview

In the Payment Clearing view of the Payables work center, you can clear outgoing payments manually. Depending on the configuration in your clearing strategy, you can also call up tasks for manual payment clearing in the Work view of the Payables work center or in one of the variants.
Procedure
1. In the Payment Clearing view, select a payment clearing item with the status Paid on Account and click Edit . The General tab in the editor displays the clearing balance that needs to be zeroed before clearing can be completed. The amounts under Clearing Overview and Payment Overview are influenced only by those open items that are matched in the Open Items table. 2. In the Open Items table, you can display the items that are currently open and that can be added to the clearing proposal to clear the payment amount. To include an item in the proposal, select the item that you want to use in the Matched column. Similarly, items can be removed by deselecting them. For detailed information on how to use the Open Items table, see Using the Open Items Table [93]. 3. Once you have eliminated the clearing difference, click Clear to clear the selected items. If you want to save a 'draft' version of your clearing proposal first, click Save . Be aware that any reposting-relevant changes are posted to accounting though. Then click Close to return to the clearing worklist. After you have checked a payment clearing task, you might find that the payment cannot be allocated to an open item. In this case, select the clearing task concerned and choose Actions then Send to Payment Allocation.
Result
Your outgoing payment is cleared either partially or entirely and updated in the list in the Payment Clearing view. All the open items that are allocated to the payment are cleared, and all the amounts that were accepted on account or allocated to other customers or suppliers are included on the relevant supplier or customer account.
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3.4.3 Using the Open Items Table Overview

The Open Items table displays the open items for the current payment in a hierarchical table. This table is structured by account ID. Each first-level item reflects the part of the payment assigned to that account. Each second-level item reflects an open item on that account that can be matched. The hierarchical structure enables you to see clearly when items belonging to different accounts are paid by a single payer in a single payment. You select items from the table to match them to the current payment. You can then apply net amounts, cash discounts, or other discounts or credits (for example due to goods being damaged), in order to clarify the payment.
Accessing Multiple Accounts

To facilitate the search for items across multiple accounts, you can use the following functions: Accounts This function allows you to add individual accounts to and remove individual accounts from the Open Items list. When an account is added, all its open items are also added. When an account is removed, all its open items including any already-matched items and on account payments are also removed. Search Open Items This function searches for open items across multiple accounts of the current company. The search result includes all items, including items that are locked by a clearing proposal or even already cleared. If you then select any of the items found for matching to the current payment, the appropriate accounts are added to the Open Items table automatically. You might use this function when a payment covers invoices from more than one account, for example. If an item has the status Open and also has a clearing ID, you cannot select it because it is currently included in a clearing proposal. If you want to match this item to the current payment, click on the clearing ID to go to the details of the clearing where you can void the proposal. Then you can match the item to the current payment.
Other Functions
You also have some or all of the following functions at your disposal in the Open Items table depending on which process or payment method you are currently working on: Assign Payment on Account With this function, you can assign an on account payment to an account of your choice. By default, the system proposes the balance between the total payment amount and all payments that have already been assigned to accounts. You might use this function to repost part of a payment currently posted to account A to account B as an on account payment, for example, or maybe to assign an overpayment as an on account payment. Actions Apply Discount or Credit
You can use this function to apply cash discounts or other discounts/credits (for example due to damaged goods) to individual or multiple open items. If you apply an amount to multiple items, the system will distribute it among the matched items according to your companys clearing strategy. Actions Edit Bank Charges
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As an alternative to posting bank charges as costs in accounting, you can use this function to post them directly to customer/supplier accounts.
3.4.4 Finding Open Items for Externally-Initiated Payments Overview

When an externally-initiated payment, such as an incoming check or an outgoing direct debit payment, is created, you must ensure that the relevant open items are assigned to the payment for clearing. The system supports you in this process by searching for open items based on various factors.
Search Based on Memo Line Content and Payer ID

The system scans the content of the memo line of the payment for invoice IDs and customer/supplier information, such as the account ID. It then uses this data combined with the payer ID (if known) to search for suitable open items. This process may have the following outcomes, depending on the result of the search:

An allocation task is created, for example if the payer is not known. A clearing task is created, for example if the payer is known, and the payment amount and the account ID specified in the memo line match an open item, but no invoice ID is specified in the memo line. Automatic clearing takes place, for example if the payer is known, and the invoice ID and account ID specified in the memo line match an open item.
Handling of Typographical Errors (Fuzzy Search)

In everyday business, typographical errors may occur when users are entering data, such as check or bank statement data. The system considers certain potential typographical errors in memo line content when it searches for open items. The system assumes that a reference might contain a maximum of one error. This may mean that a character has been deleted or inserted by mistake, or two characters have been swapped by mistake. The system applies the possible modifications to the references and searches for open items that match the modified references. If the system finds a single open item based on a fuzzy search, a clearing task will be created. If multiple open items are found, no item will be proposed as a match and no clearing task will be created. In an example scenario where the correct reference is ORDER 21, the system will search for open items using references like ORDRE 21, ORDER 12, ORDERR 21, ORDER 215, ORDR 21, ORDER21, ORDRR 21, or ORDER X1 and still find an open item containing the correct reference ORDER 21. Since, however, only one error is allowed, it would not use ORDRE 12, for example. The fuzzy search only operates if the account is known and the reference has at least three characters. There is no fuzzy search for accounts.
See Also
Payment Allocation and Clearing [188]
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3.5 Periodic Tasks

3.5.1 Quick Guide for Payment Runs (Payables)
In the Payment Runs subview of the Periodic Tasks view of the Payables work center, you can perform automatic runs, which generate payment proposals for internally initiated payments. The system displays recurring payment runs as well as payment runs that you have scheduled for a future date. You can edit existing payment runs and reschedule them. You can display existing payment runs and check the application logs of runs that have already been executed. You do not use this view to generate bank transfers, direct debits, checks, or bills of exchange. Instead you use the Payment Media Run in the Payment Management area.
Business Background Mass Data Runs

A Mass Data Run (MDR) is the automatic mass processing of a task or a business transaction. MDRs enable mass processing of business data and are used in business processes, for example, invoice runs, payment authorization runs, or balance confirmation runs. When a user schedules an MDR the system represents it as a background job. During scoping, it is possible to provide default variants of the MDRs. MDRs are created and maintained in the work centers. Using the Job Scheduler, users schedule the run to execute once or regularly at specified times. In the Background Jobs view of theApplication and User Management work center, key users can monitor and reschedule MDR jobs that are created by users in other work centers. For more information, see Mass Data Runs.
Internally Initiated Automatic Outgoing Payments

In your role as an accounts payable accountant, you require functions to process national and international outgoing payment transactions made with suppliers and other creditors. The system makes these functions available in the Payment Management and Payables work centers. When you create a payment, you can specify the payment method and other details, such as the house bank account from which to pay, the bank data of the supplier/customer, or the bank processing date. You can also use the Payment Monitor in the Payment Management work center to monitor all payment transactions regardless of status, payment medium, or payee. As the accounts payable accountant for your company, you initiate the automatic creation and editing of outgoing payments in the Payables work center. Here you create a payment run, which is used to generate a payment proposal list based on the payment strategy configured and the selection criteria chosen. Possible selection criteria are:

Company Date of the next payment run; if required, taking account of your configuration settings for the payment strategy Specify this date if you want to perform the payment run once only. If you schedule the payment run to be performed on a recurring basis, the system determines the appropriate date. Suppliers and other creditors Currency Bank processing date
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Specify the requested payment date (for bank transfers and direct debits only). Depending on working days, the bank may make the payment later. Leave this field empty if you want to schedule the run periodically.
Posting date The default posting date is the execution date of the run. Leave this field empty if you want to schedule the run periodically.

For more information, see Internally Initiated Automatic Outgoing Payments [16].
Tasks Create and Edit Payment Proposals for Payables

For more information on this task, see Create and Edit Payment Proposals for Payables [96].
3.5.2 Create and Edit Payment Proposals for Payables Overview

A payment proposal list contains all open items (for example, invoices or credit memos) that the system proposes for payment within a single execution of a payment run. You can use the payment proposal lists to check internally initiated payments before they are executed. A payment proposal list is determined on the basis of the payment strategy that you have defined in configuration and displays the due payments taking payment conditions into account. Depending on the setting, it allows an optimal usage of granted cash discounts. To display a payment proposal list created by the system for internally initiated outgoing payments, in the Payables work center, choose Automatic Payments. Alternatively, you can access payment proposals in the Work view filtered according to Payment Run Tasks, or in the Payment Runs subview of the Periodic Tasks view. The system shows due supplier payments. You can decide when invoices should be paid so that you ensure that your commitments to suppliers are cleared on time and correctly. This view contains all outgoing payments initiated by a
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payment run (not outgoing payments initiated by suppliers, such as by direct debit with mandate) and payments to customer credits (customers with a credit balance). Once you have checked the payment details and terms of the proposed payments, you can release them. Depending on the settings in configuration, you may need approval from a manager. Once you have executed the payments (by choosing Execute Payment in the Automatic Payments view), the system posts the payment and clears the open items to be paid.
Prerequisites
You have made the following predefined settings in configuration and for master data: Configuration settings are normally performed by a key user. If you do not have the required authorization, contact your key user. Scoping Under Questions Cash Flow Management , you have made the basic settings for your payment processes.
Fine-Tuning You have selected the following settings in Business Configuration under Management :
Activity List
Fine-Tune
Cash Flow
Payment Strategy (mandatory) You can create one or multiple payment strategies, which the system accesses when creating the payment proposal lists. These settings directly influence when the open items are included in a payment proposal list and whether deductions should be made. Approval Process In the payment processing settings, you specify a threshold value for each payment method. When this threshold value is reached, an approval of the outgoing payment is required. The approval request is always sent to the manager that you have specified in Application and User Management in the Work Distribution Rules At Employee Level area. Prioritization of Bank Accounts You can specify all bank information, the payment method for each bank account, and the threshold values for the bank accounts. The system accesses the bank accounts during liquidity assignment for the payment of invoices depending on the priority.
Procedure
1. Creating a Payment Proposal List To create a new payment run, proceed as follows: a. Go to the Payables work center and choose the Payment Runs subview of the Periodic Tasks view. Choose New then Payment Run. The New Payment Run screen appears. You can use the following selection criteria for your payment run: Posting Date You can specify a posting date. The default posting date is the execution date of the run. Leave this field empty if you want to schedule the run periodically.
Bank Processing Date
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You can specify the requested payment date (for bank transfers and direct debits only). Depending on working days, the bank may make the payment later. Leave this field empty if you want to schedule the run periodically.
Include On Account Payments Here you can specify whether you want the run to include outgoing on account payments. These are payments that have been posted to an account but not yet cleared. Company Supplier from/to ID You can define a value range enabling you to select multiple suppliers for one payment run. If you do not select a supplier, the system selects all the suppliers entered in the system for the payment run. Currency You can specify a currency. Only those invoices that match the selected currency are cleared. Next Payment Run Date Here you enter the date up to which all open items should be considered in the payment proposal list. You cannot edit this field later. You only specify this date if the payment run is performed immediately and performed once only. If the payment run is scheduled periodically, no date should be entered here. The payment run then takes into account all items until the payment run is next performed. Items with a payment block are not selected by the run. This applies to on accounts payment as well.
b. Activate and save your entries. 2. Scheduling a Payment Run a. On the Payment Run: <ID> screen, click Schedule . The Schedule Job screen appears. If you want to start the payment run immediately and run it once only, choose Start Immediately. Alternatively, you can specify a start date and time or arrange for it to run after a specific job. If you want to schedule the payment run periodically, specify when the payment run should be repeated, for example, daily or weekly. b. Save your entries. c. Close the Schedule Job screen. You can view the technical details on the execution of a run in the log in the Payment Runs subview of the Periodic Tasks view. To do this, select the relevant payment run under Payment Runs then click on the relevant ID in the Application Log ID column of the lower table. For more information, see Messages in the Payment Run Application Log [99]. 3. Displaying a Payment Proposal If the run was successful, you can display the payment proposals created by the system for internally initiated outgoing payments. You do this in the Payables work center in the Automatic Payments view. 4. Editing and Releasing a Payment Proposal To edit a payment proposal, proceed as follows: a. In the Payables work center, open the Automatic Payments view. Alternatively, you can open the Work view and filter according to Payment Run Tasks. b. Select the appropriate payment proposal. c. Choose Edit to display the details for the payment and to make changes. You can change the payment method and related data (such as the bank account), change the payment amount, select other customer/supplier bank
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details, enter or change a cash discount amount, or delete open items (which will exclude them from the payment). You can also reject a payment proposal. This does not affect the open items since there has been no posting in the system. d. To protect the company's liquidity, the system checks during payment creation (release) whether liquid assets could be successfully allocated to the payment. It checks whether there is sufficient liquidity for the payment at the bank and reserves the relevant amount for this payment. If the system could not allocate liquidity because there were not sufficient liquid funds, it issues an error message. For important payments, you can override the allocation of liquidity and specify that there should be no allocation of liquid funds. To do this, choose Actions then Liquidity Allocation Not Required. In this case, the payment is made regardless of the availability of liquid funds. e. Once you have finished editing a payment proposal, choose Execute Payment to forward the payment to the Payment Management work center or to the approver of the outgoing payment. The approval is necessary if the threshold value defined in configuration for the approval of an outgoing payment is reached. If no approval is necessary for the outgoing payment, posting takes place in the system with the execution of the payment and the open items are cleared. If an approval is necessary, posting takes place after approval. 5. Approving a Payment Proposal Once you have edited and released a payment proposal that must be approved, it is automatically forwarded to the approver in the Managing My Area work center in the Approvals view. The approver can approve the payment or send it back for revision.
See Also
Internally Initiated Automatic Outgoing Payments [16] Configuration: Payment Strategies
3.5.3 Messages in the Payment Run Application Log Overview

On the Results tab of the payment run application log, you can view all the messages generated during an individual execution of a payment run. To access this tab in the Payables or Receivables work center, choose Periodic Tasks Payment Runs . Select the relevant payment run under Payment Runs then click on the relevant ID in the Application Log ID column of the lower table. The messages and any action required are explained below:
Message Severi What Happened? ty warnin g What Can I Do?
All proposals postponed; total payment proposed exceeds account balance
The overall account balance (both payables You can: Ignore the balance check warning and receivables) has been checked and indicates that the overall proposed payment and execute the payment anyway amount is not required. This check considers by choosing Reset Postpone. all created payment proposals regardless of Void the individual payment currency and payment details. The most proposal. common reasons for this message are: Edit the proposal to add or On account payments are not considered remove items. by the payment run (unless you specify that they should be when you create the Ideally, however, you should maintain accounts on a regular basis to keep the
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run). These items are, however, still open number of balance check warnings to and therefore visible in the balance. a minimum.
Items that are locked by a clearing process, such as when a clearing is still in approval, are not selected by the payment run. These items are, however, still open and therefore visible in the balance. The payment run does not net payables and receivables, but the balance check does consider both. Therefore, if the business partner is both customer and supplier, payment proposals may be postponed due to open items of the other account type.
Note that down payments are not considered by the balance check. All proposals postponed; exchange rate <Currency1> to <Currency2> missing error The account balance check could not be processed successfully. You can: Maintain the exchange rate and execute the run again.
Ignore the balance check warning and execute the payment anyway by choosing Reset Postpone.
<Payer/Payee/ AccountID> blocked for

payments Void not possible: payment
inform ation
A payment block has been set in the master No action required. data and is active on the current payment date. Note that the system checks both customer/ supplier and payer/payee for payment blocks. The payment run generally voids any existing If you want to optimize the grouping, proposals for items that it selects in order to contact the user or execute the run optimize the grouping of items for payment. again later. In this case, the system was not able to void a proposal because it is locked by another user. Proposals for items that balance to zero are not created because no payment is necessary. These items are, however, due.
error
<ProposalID> locked by <UserID>
Proposal discarded; Payment not possible as items balance to zero
warnin g
Check whether payment is required and pay manually if necessary. Clear the items balancing to zero manually.
Proposal discarded; Incoming payment data missing for
inform ation
<PayerID>
In general incoming payments are externally initiated. Therefore, proposals for incoming payments are not created if the payment data for initiating the payments is missing.
No action required if the payments are externally initiated. If the payments are internally initiated, you must provide the missing payment data and execute the run again or pay manually. You must provide the missing payment data before you can execute the payment.
Outgoing payment data missing for <PayeeID>
warnin g
In general outgoing payments are internally initiated. Therefore, proposals for outgoing payments are created even though the required payment data is missing.
<ItemType> <ItemID>
(open amount <Amount>)
inform ation
The proposal has been discarded. This No action required. You can use the message shows which items would have been information provided if you need to paid with the proposal. follow up manually. This item is due, but is currently locked by another user If you want to pay this item, contact the user and pay the item manually or execute the run again later.
<ItemType> <ItemID>
currently locked by user
error
<UserID>
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inform <ItemType> <ItemID> excluded; not due according to ation payment strategy
The item has been excluded from the payment No action required. proposal based on the strategy defined during business configuration. The item has been excluded from the payment You can either complete the process proposal because it is already included in a that is locking the item or discard it clearing process or payment process. manually. Either way, you should check that the item is fully cleared, because an additional payment may be required for a remaining open amount. The item has been excluded from the payment Maintain the exchange rate and proposal because its currency could not be execute the run again. converted.
<ItemType> <ItemID>
excluded; locked by
warnin g
<Payment/Clearing> <DocumentID>
<ItemType> <ItemID>
excluded; error converting currency <Currency1> to
error
<Currency2> <ItemType> <ItemID>

excluded; defined payment method is externally initiated inform ation The item has been excluded from the payment No action required. proposal because the payment method defined individually for the item is externally initiated, such as check payment on a customer invoice. A payment block has been set for this item and No action required. is active on the current payment date. Down payments are excluded by payment No action required. runs, because they are only interim items that are followed eventually by invoices. They are also excluded by the account balance check. A payment proposal covers at least one item No action required. belonging to an account other than the payer/ payee's account. This may occur when a payer also makes payments on behalf of other accounts, for example. You have chosen to include on account Check the proposal in the payment payments in the payment run and at least one proposal list. on account payment is in a currency other than the currency of the corresponding account. The payment proposal is postponed. A payment proposal has not been generated because no internally initiated payment method is maintained for this customer. Only externally initiated payments are possible for this customer. No action required.
<ItemType> <ItemID>
blocked for payments Down payment <ItemID> excluded
inform ation inform ation
Payment contains items of
<Customer/Supplier ID>
inform ation
Proposal postponed; on account payment with foreign currency
warnin g
Payment not possible; inform incoming payment data ation missing for <Customer ID>
See Also
Application Log Mass Data Runs
3.5.4 Quick Guide for Balance Confirmation Runs (Payables)

You use the balance confirmation run in the payables area to compile data for your supplier balance confirmations and to create balance confirmation letters. These letters inform your suppliers about their account balances and request that
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the balance information is confirmed. In this way, you can reconcile your system data records with the data records in the supplier system. Alternatively, you can request that your suppliers send you a balance confirmation return letter. You access the balance confirmation run functionality for payables in the Balance Confirmation Runs subview of the Periodic Tasks view of the Payables work center.

Balance Confirmation for Payables

Balance confirmation for payables is a means of checking that payables to business partners are correct. Discrepancies may arise and need to be clarified with your business partner. During balance confirmation, you inform your business partner of the individual amounts that need to be confirmed and request the confirmation. Fore more information, see Balance Confirmation for Payables
Open Items Payables

You can display open item lists for supplier accounts. Open items are posted open invoices for goods and services or credit memos that were not yet paid. With the lists of the open items of suppliers of your company, you can monitor the dates of outgoing payments to avoid interest on arrears and use cash discounts. Open payments are also displayed in the open item list. In addition, you get an overview for which supplier accounts you still need to edit open items. For more information, see Open Items Payables [73]
Tasks Create a Balance Confirmation Run

For more information on this task, see Create a Balance Confirmation Run [103]Create a Balance Confirmation Run [165].
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3.5.5 Create a Balance Confirmation Run Overview

You can send balance confirmations to compare your data records with those of your suppliers/customers and consequently identify any inconsistencies. You use balance confirmation runs to schedule balance confirmations on a frequent and recurring basis. Alternatively, you can perform a manual run as a one-off request. You can create a balance confirmation run in the Balance Confirmation Runs subview of the Periodic Tasks view of either the Payables or the Receivables work center.
Procedure
1. To create a new balance confirmation run, click New 2. Select a Type 1. Enter a description for the balance confirmation run. 2. Choose an appropriate balance confirmation type: Without Return Letter This selection enables you to check the accuracy of your accounts payable and receivable using balance confirmations. You can detect and correct any discrepancies which might exist between your records and those of your customers or suppliers and make any necessary value adjustments. However, the customer or supplier does not send a return letter documenting the differences in this case. The balance confirmation can only be confirmed or rejected. As long as the customer or supplier makes no objections prior to the cut-off date, your balance is accepted.
then Balance Confirmation Run.
With Return Letter This selection enables you to contact your customers or suppliers to discuss the details relating to your open items. Your company issues a letter listing all your open item details. This letter requests that the customer or supplier confirms whether the data entries agree with each other, or specifies how the accounts differ using the return letter provided. In this way, you can determine whether your customer and supplier accounts are up-to-date as well as identify any discrepancies using the information contained in the return letter. Request This selection enables you to contact your customers or suppliers to check the balance of your accounts on the side of the customer or supplier. You can request the account balance alone or also detailed information relating to the balance.
3. Choose Release Immediately if you want to release the confirmation straight away. The balance confirmation letters are printed automatically once the run has been completed. Alternatively, you can manually check and release each balance confirmation. 4. Choose whether you want automated or manual selection of customers/suppliers. 3. Enter Restrictions You can enter the name of the company or the customer/supplier. You can also choose various selection parameters that include or exclude particular customers or suppliers from the balance confirmation run, depending on the restriction type that you selected in the previous step. 4. Complete and Confirm Selection Click Finish to save the balance confirmation run. When the run has been saved successfully, the Run ID field displays the ID of the new balance confirmation run.
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Choose Schedule Balance Confirmation Run. The Schedule Job editor appears. Here you can schedule and save the run.
Result
The balance confirmation run has now been created and scheduled successfully. You can display the results of the run in the Balance Confirmation subview of either the Suppliers view in the Payables work center or the Customers view in the Receivables work center. From this location, you can check and release the balance confirmation. You can use search criteria, such as the Status or Run ID to search for the balance confirmation that you want to view.
3.5.6 Quick Guide for Foreign Currency Remeasurement (Payables)

You use foreign currency remeasurement to convert open payables from foreign currencies into the company currency on a specific key date. This closing activity is relevant for companies with suppliers for which the transactions are portrayed in a currency differing from the company currency. At the time when the amounts of these open payables originate, you convert them into the company currency using the exchange rate valid at that time. On the day when the balance sheet is created, a different exchange rate applies, causing you to have to revaluate the open items. You can repeat the remeasurement as often as required until the payables are cleared or written off.
Business Background Multi-Currency

A currency is the legally recognized means of payment in a given country. A currency has to be specified for every financial amount in the system. The currencies are specified using the ISO standard form, such as EUR for euros or USD for US dollars. For more information, see Currencies.
Foreign Currency Remeasurement Method

You use the foreign currency remeasurement method to set up the various methods for entering foreign currency remeasurement in accordance with the legal requirements. For each foreign currency remeasurement method, you define the accounting principles that should be used by the corresponding remeasurement method. For more information, see Foreign Currency Remeasurement Method.
Foreign Currency Remeasurement

If you start the procedure for foreign currency remeasurement, the system automatically makes the relevant postings and subsequently withdraws postings. For more information, see Foreign Currency Remeasurement [82].
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Closing Activities Year-End Closing

Before you can create your closing reports, you first need to perform some preparatory tasks. The system supports you in this process. For more information, see Closing Activities Year-End Closing.
Tasks Check Prerequisites

Before foreign currency remeasurement can be performed, the following prerequisites must be fulfilled:
The current exchange rates need to have been entered in the system. For more information, see Editing Exchange Rates. You need to have reclassified the payables. For more information, see Quick Guide for Reclassification (Payables) [107]. Using account determination, you need to have defined and set up in configuration the accounts that you want to remeasure. For more information, see Business Configuration of Account Determination for a Business Transaction. You need to have defined how the system is to valuate and post exchange rate differences. For this, you need to have assigned the appropriate set of books to the foreign currency remeasurement method. For more information, see Foreign Currency Remeasurement Method.
Perform Foreign Currency Remeasurement for Payables

1. To create a new foreign currency remeasurement run, click New Currency Remeasurement Run. and then Foreign
2. You have the following options for performing foreign currency remeasurement runs: Foreign Currency Remeasurement with Reference To re-use the data from a previous foreign currency remeasurement run, select the foreign currency remeasurement run that you want to use and click Copy . The system copies the data directly to the input screen for the new foreign currency remeasurement run. You can then adjust the data copied from the previously-executed foreign currency remeasurement run.
Test Run To perform the foreign currency remeasurement run as a test run, set the Test Run indicator. The system previews the results of the test run but does not make any postings. The postings are only simulated. You can only delete foreign currency remeasurement runs that you either scheduled or performed as a test run. To delete a test run, select the run that you want to delete and click Delete .
Set of Books You can perform the remeasurement for a single set of books or for all sets of books.
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If you use multiple sets of books with different fiscal year variants, you should ideally perform the remeasurement separately for each set of books. The system determines the key date on the basis of the fiscal year variant of the set of books.
Business partner ID You can limit foreign currency remeasurement to payables for individual suppliers. Currency You can limit foreign currency remeasurement to payables in specific currencies. Closing Step You select the closing step that you want the system to use when making the postings on the key date to the corresponding accounting period. This accounting period must be open for the closing step that you have selected. For more information, see Closing Steps. Period / Year You select the period and year for which you want to perform foreign currency remeasurement.
3. Scheduling You can either perform foreign currency remeasurement immediately or schedule it to occur later: To perform foreign currency remeasurement immediately, click Start Immediately . You have to wait until the foreground job finishes before you can continue with your work. This may take several minutes depending upon the data volume, which can cause the screen to time out. In such a case, you can go to the main screen for the run and refresh the data. When the run status changes to Finished, click View to view the logs. Alternatively, you can click Log Result in the Details section of a finished run.
To schedule foreign currency remeasurement for a subsequent point in time, click Schedule and specify the time when the system will perform remeasurement. If you leave the Date and Time fields empty, the run starts immediately. You can continue with your work while the system executes the run as a background job. You can view scheduled foreign currency remeasurement runs and their respective times in the subview Foreign Currency Remeasurement under Jobs .
Display and Check Log

1. Display Log If you have performed foreign currency remeasurement immediately, the system issues a status message. To display a list of the logs, click Display Log in the status message. When you have scheduled foreign currency remeasurement, you can display the list of logs in the Foreign Currency Remeasurement subview after foreign currency remeasurement has been performed. To do this, choose the relevant foreign currency remeasurement. 2. Check the Log The log contains the following information:
General
Shows the result of the foreign currency remeasurement run, the execution date, any messages that were issued, and the extent of profit or loss from the valuation.
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Data Selection
Shows the information that you entered at the start of the foreign currency remeasurement run.
Messages
Shows a list of all messages that were issued (such as warning messages).
Postings
Shows all the account movements and journal entries that the system posted for the key date valuation.
Processed Successfully
Shows for each remeasuremed account all the documents with their source document ID, historical value, and key date value, as well as gains and losses. You can also view the term over which the valuation was performed.
Not Remeasured Balances
Shows for each remeasuremed account the documents that were subject to errors during processing, for example, no account determination. To verify whether a run has been completed successfully, you can run the following checks: Log You find a log for a run in the corresponding subview. Each run has a status (Information, Error). To display the details of a log, select the relevant run and click Display . If errors occur during a run, you need to resolve them. You can find information on the errors on the Messages tab page. Once you have resolved the errors, start the run again. The system repeats the postings that could not be made in the first run.
Job Monitor If a run has not been completed successfully and you cannot find and resolve the cause, you can display the technical details relating to your run in the Job Monitor. Select the relevant run and click Display Jobs . If a job finds errors, contact your system administrator.
3.5.7 Quick Guide for Reclassification (in Payables)

You use the reclassification of payables to display your payables correctly. The reclassification of payables and receivables is an important closing step. Based on the closing balance for each single debtor and creditor, and based on the remaining term, the system characterizes the amounts accordingly under accounts payable for debit amounts, and under accounts receivable for credit amounts. In a second step the system reclassifies the receivable and payable items by remaining terms (0 12 months, 12 60 months, > 60 months). A reclassification can be reversed. Overdue items are not restructured. They have a remaining term of less than one year.
The intervals for the reclassification are derived automatically on the basis of the accounting principle specified in the business configuration.
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Business Background Reclassification

If you start the procedure for reclassification, the system automatically makes the relevant postings and subsequently withdraws postings. If you start the procedure for reclassification, the system automatically posts the corresponding receivables or payables, depending on their remaining terms. To do so, the system automatically creates the relevant journal entries. For more information, see Reclassification [84].

Before you can create your closing reports, you first need to perform some preparatory tasks. The system supports you in this process. Before you can create your closing reports, you first need to perform some preparatory tasks. The system supports you in this process. For more information, see Closing Activities Year-End Closing.
Tasks Perform Reclassification for Payables

1. To perform a new reclassification run, click New and then Reclassification of Payables.
2. You have the following options for performing reclassifications: Reclassification with Reference To reuse the data from a previous reclassification, select the reclassification that you want to use and click Copy . The system copies the data directly to the input screen on the new reclassification. You can then adjust the data copied from the previouslyexecuted reclassificatio
Test Run To perform the reclassification as a test run, select Test Run. The system previews the results of the test run but does not make any postings. The postings are only simulated. You can only delete reclassifications that you either scheduled or performed as a test run. To delete a test run, select the run that you want to delete and click Delete .
Set of Books You can perform reclassification for a single set of books or for all sets of books. If you use multiple sets of \books with different fiscal year variants, you should ideally perform the balance carryforward separately for each set of books. The system determines the key date on the basis of the fiscal year variant of the set of books. Closing Step You select the closing step that you want the system to use when making the postings on the key date to the corresponding accounting period. This accounting period must be open for the closing step that you have selected. For more information, see Closing Steps.
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3. Scheduling You can perform reclassification immediately or schedule it to occur later: To perform reclassification immediately, click Start Immediately . You have to wait until the foreground job finishes before you can continue with your work. This may take several minutes depending upon the data volume, which can cause the screen to time out. In such a case, you can go to the main screen for the run and refresh the data. When the run status changes to Finished, click View to view the logs. Alternatively, you can click Log Result in the Details section of a finished run.
To schedule reclassification for a subsequent point in time, click Schedule and indicate when you want the system to perform reclassification. If you leave the Date and Time fields empty, the run starts immediately. You can continue with your work while the system executes the run as a background job. You can view scheduled reclassifications and their respective times in View Jobs .
Review the results of the run in the Payables work center in the Work view under Reclassification Run Payables Tasks. Edit the tasks accordingly, click Actions and click Complete. The Reclassification run now appears in the list of finished reclassification runs.

1. Display Log If you performed reclassification immediately, the system issues a status message. To display details, click Display Log in the status message. When you have scheduled reclassification, you can display the list of logs once the reclassification has been performed. To do this, choose the relevant reclassification run. 2. Check the Log The log contains the following information:
General
Shows the result of the reclassification, the execution date, any messages that were issued, and the extent of profit or loss from the valuation.
Data Selection
Shows the information that you entered at the start of the reclassification.
Messages
Postings
Shows all the account movements and journal entries that the system posted for the key date valuation and the valuation reversal. You can display the postings for each reconciliation account or sorted by document.
Shows for each reconciliation account all the journal entries with data on the supplier, journal entry ID, remaining term groups, and the amount in company currency.
Not Processed
Shows the documents that were subject to errors during processing, for example because of missing account determination for each reconciliation account.
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To verify whether a run has been completed successfully, you can run the following checks: Log You find a log for a run in the corresponding subview. Each run has a status (Information, Error). To display the details of a log, select the relevant run and click Display . If errors occur during a run, you need to resolve them. You can find information on the errors under Messages . Once you have resolved the errors, start the run again. The system repeats the postings that could not be made in the first run.
Job Monitor If a run has not been completed successfully and you cannot find and resolve the cause, you can display the technical details relating to your run in the Job Monitor. Select the relevant run and click View Jobs . If a job finds errors, contact your system administrator.
Perform Reversal of Reclassification for Payables

If you perform the reversal of a run performed in an accounting period after the period is closed, the system allows you to execute the run. At the end of the run, instead of postings, you will see an error message saying that reversal is not possible because the closing step for the period has already been performed. 1. Select the run to be reversed Select the reclassification you want to reverse. The run must be an Update run and must have Finished as the execution status. 2. Schedule reversal run click Reverse , enter a Run Description and schedule it. 3. Review the results of the run in Reclassification Run Payables Tasks. Edit the tasks accordingly, click Actions and click Complete. 4. The reversed run now appears in the list of finished reclassification runs. 5. Result As a result of reclassification the system posts negative postings or equivalent debit or credit postings. This is determined by the business configuration. If the reversal run for the selected reclassification run is scheduled to a later time, it is listed in the Payables work center under the Work view with a blank status. The status switches to Finished when the run has been performed.
All the reversed runs have the Reversed indicator set.
3.5.8 Central Bank Reporting

3.5.8.1 Quick Guide for Central Bank Reporting
This document contains text that is relevant for Austria, France, and Germany. To ensure that the system displays the correct text, select Personalize My Settings . Select Onscreen Help and, under Country, choose the relevant country. Save your settings and logout to ensure these changes are made.
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The Central Bank Reporting subview enables you to report your foreign trade transactions to the authorities. This information is used in the calculation of the balance of payments for your country. Different regulations apply to central bank reporting depending on the country. You can use the Central Bank Reporting subview to manually maintain and prepare this data for central bank reporting that has been collected from supplier and customer invoicing. In addition to the automated data collection process, it is possible to manually enter data to the central bank reporting work list. If there are no entries for your company in the Central Bank Reporting list, your company might not be activated for central bank reporting. You should check the Central Bank Reporting Exclusion activity in business configuration if central bank reporting is deactivated for your company.
Business Background Central Bank Reporting Exclusion

You can exclude any of your company entities from the system's processing for central bank reporting. When a company is excluded, no customer or supplier invoicing information is transferred to the Central Bank Reporting worklist and no central bank reporting tasks are created. For more information, see Central Bank Reporting Exclusion
Tasks Perform Central Bank Reporting

In the Central Bank Reporting subview of Periodic Tasks, you can perform central bank reporting, which involves the collection and management of foreign trade transactions. These transactions are reported to the authorities to create the balance of payments for the respective country. For more information, see Perform Central Bank Reporting [112].
Edit Central Bank Code Determination Rules

In the Central Bank Code Determination fine tune activity in Business Configuration, you can assign central bank codes according to the official lists provided by the authorities. The rules can also be created or edited in the Central Bank Reporting subview. These rules are used to determine the default central bank code used for an invoice that has the relevant attributes.
Assigning a Business Partner to an International Organization Austria

When a business partner belongs to or is considered to be an international development organization, it is subject to central bank reporting. Trading with this customer or supplier is subsequently reported to as part of your companys regular central bank reporting. For more information, see Determination of International Organizations for Central Bank Reporting Austria [117] . This task is relevant for Austria only.
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3.5.8.2 Perform Central Bank Reporting Overview

In the Central Bank Reporting subview of Periodic Tasks, you can perform central bank reporting, which involves the collection and management of foreign trade transactions. These transactions are reported to the authorities to create the balance of payments for the respective country.
Prerequisites
Ensure you have resolved any outstanding central bank reporting related tasks in the Work view. For example, that you have manually assigned central bank codes where the system was unable to automatically determine the relevant code, or created additional line items (for non-payables or non-receivables items) that need to be reported. The same data is available in the Central Bank Reporting subviews of the Payables and Receivables work centers and you can perform central bank reporting from either of these work centers. Data from customer invoicing and supplier invoicing from business partners abroad appears in the Central Bank Reporting worklist.
Procedure
1. Go to the relevant work center, such as Payables or Receivables. Choose the Periodic Tasks view and then choose the Central Bank Reporting subview. 2. Specify the country to report. 3. Filter for the relevant document line items:
To filter the document line items, click the Advanced search link and enter the search details. Useful filter parameters include filtering by date range and by status. Click Go to filter for the relevant document line items. The following statuses are available: The Not Relevant status indicates a line item which includes a central bank code but doesn't need to be reported.
The In Preparation status indicates a line item created manually or automatically for which data entry is not yet completed, for example a missing central bank code. This status automatically changes to Reporting in Process when data is complete, for example when you enter a central bank code. It is not possible to manually change this status. The Reporting in Process status indicates a line item created manually or automatically for which all data is complete but the line item has not yet been reported to the relevant authorities. When you have reported this line item you change the status to Reported. The Reported status indicates a line item has been reported to the relevant authorities for the appropriate reporting period. If you mistakenly change the status of a line item to Reported you can change it back to Reporting in Process. The Cancellation Reporting in Process status indicates the corresponding invoice for the line item has been cancelled but the cancellation has not been reported yet to the authorities. When
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you have reported the cancellation you change the status of this line item to Cancellation Reported. If the corresponding invoice is cancelled in the same month before it was reported to the authorities, the line item is deleted from the central bank reporting worklist.
The Cancellation Reported status indicates the corresponding invoice for the line item has been cancelled, and the cancellation was reported to the authorities for the respective reporting period. If you mistakenly change the status of a line item to Cancellation Reported you can change it back to Cancellation Reporting in Process.
4. Add any missing information that needs to be declared to the worklist, for example, salary for employees abroad. 1. Click New and choose New Central Bank Reporting to open the Central Bank Reporting quick activity. 2. Enter reporting information as required. 3. Click Save to add the item to the central bank reporting worklist. 5. Review the document line items.
If you need to manually assign a central bank code to a document line item, click Edit to open the Central Bank Reporting quick activity and then enter the required data. However, to avoid receiving further tasks in your worklist relating to similar document line item types, you should create a central bank code determination rule for this document line item type. You can then propose this central bank code for document line items with the In Preparation status. If you have created a new line item for the central bank reporting worklist, you have the option to edit all the details for this line item. However, if the line item comes from another document , such as an invoice, you can only edit the central bank code. In some cases such as transit trades, you may need to review and change the central bank code.
If the business partner is located in the same country as your company or if the country of the business partner is missing, you should mark the entry as Not Relevant . This item will then be excluded from reporting.
6. Format the report:

Click on the Advanced link to display the Advanced filter options. Set the Status field to "Reporting In Process". Set additional filters as required, for example, document date and company ID. Click Go . The system displays the filtered data in the table. You can now perform the Export function to create a Microsoft Excel spreadsheet with the reporting data.
7. To transfer the details to the relevant authorities, you must export the reporting information to a Microsoft Excel spreadsheet . 1. Choose Export To Microsoft Excel . 2. The system displays the message: Exported spreadsheet is ready; download to your local machine? Choose Yes . 3. The system displays a message: Do you want to open or save this file? Choose Save . 4. The system displays the Save As dialog box for you to choose where to save this file on your local machine. Choose a suitable location to save the file on your local machine and click Save . 5. The system displays the message: Download Complete. Choose Open to open the file immediately. You can choose Close to close the dialog box if you want to open the file later. 6. The system displays the message: Do you want to replace the contents of the destination cells in Sheet1? Choose Yes .
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7. The Microsoft Excel worksheet is now open for you to use the data as required. Scroll to the bottom of the worksheet to see the Pivot table with the summary of the Central Bank Reporting data for you to report. In this pivot table you can sort by central bank code and check the total value of transactions for a particular code. For Germany, if the total for a central bank code exceeds EUR 12,500 , then you must report this transaction to the authorities. 8. Select each of the line items you have reported and click Actions , then choose Reported. If the status is not set to Reported, then reported line items may be inadvertently included in future central bank reports. If you mistakenly change the status of a line item to Reported you can change it back to Reporting in Process.
Result
Using this Excel as a basis, you must fill out and submit the relevant forms manually to the relevant central bank.
See Also
Quick Guide for Central Bank Reporting [110]Quick Guide for Central Bank Reporting [173]
3.5.8.3 Related Information

3.5.8.3.1 Configuration Guide for Central Bank Code Determination Austria
When a user creates an invoicing document (invoice or credit memo) for a foreign business partner, certain information in this document may need to be reported to Statistik Austria, who collect balance of payment information on behalf of Oesterreichische Nationalbank (OeNB), the Austrian central bank. In the Central Bank Code Determination Austria configuration activity, you can create rules that map the relevant invoice line attributes to the official central bank code. A rule consists of one or more attribute values, which is then assigned a central bank code. The system uses specific attributes of each document line item to automatically determine the applicable central bank code. This document contains details and instructions regarding configuration settings. Such settings are normally performed by a key user. If you do not have the required authorization, contact your key user. To find this activity, go to the Business Configuration Implementation Projects view. Select your implementation project and click Open Activity List . Select the Fine-Tune phase, then select the activity from the activity list.
Prerequisites
You have selected central bank reporting in your system configuration. Central bank reporting is only available for Austria, France and Germany. You must select one of these countries in the Country and Type of Business step in the scoping phase. To find this topic, go to the Business Configuration work center and choose the Implementation Projects view. Select your implementation project and click Edit Project Scope. In the Scoping step of the guided activity, select Compliance , then Central bank Reporting topic.
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Tasks Create a Rule for Central Bank Code Determination Customer Invoicing
In the Central Bank Code Determination Austria activity, click Central Bank Code Determination for Customer Invoicing - Austria. After the implementation project is complete, you can also access this fine-tune activity from the Central Bank Reporting view, which is under Periodic Tasks in the Receivables work center . Select Austria from the countries available and then select a customer invoice line item from the list. Finally, click Actions and choose Central Bank Code Determination for Austria. Supplier and customer invoice items are both displayed in the Payables and Receivables central bank reporting work lists. You must therefore ensure that you select a customer invoice in order to edit the central bank code determination list for customer invoicing. 1. Select the company that is performing the central bank reporting. 2. If relevant for this rule, select a product type. To do this, under Product Type, select * (asterisk) and choose the operator EQ - Equals To; browse for the product type using the Open Selection Dialog. 3. If relevant for this rule, select a product ID. 4. If relevant for this rule, select a product category. 5. Select a code that corresponds to the combination of selections you made for the different attributes. If necessary, use the arrow buttons to reorder the rules so the most specific rule is first and the most generic rule is last. Click Save and Activate . The sequence of rules in the list is important as the code determination works from top to bottom. Create the most specific rule at the top of the list, and the most general or default rule at the very end. Insert new rules where necessary to maintain the integrity of the code determination sequence. You are only required to report cross border services and transit trade goods to Statistik Austria. You should therefore create a rule in central bank reporting to exclude other goods that are not transit trade. To automatically exclude non-transit-trade goods from central bank reporting, you should do the following:

If required, select the relevant company. Select Material as the product type. Choose Transit Trade equals to No. Do not enter any central bank code, that is, leave it empty.
Reported In is automatically changed to False. Any entries for non-transit-trade goods are then hidden from the central bank reporting list.
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Create a Rule for Central Bank Code Determination Supplier Invoicing

In the Central Bank Code Determination Austria activity, click Central Bank Code Determination for Supplier Invoicing - Austria. After the implementation project is complete, you can also access this fine-tune activity from the Central Bank Reporting view, which is under Periodic Tasks in the Payables work center . Select Austria from the countries available and then select a supplier invoice line item from the list. Finally, click Actions and choose Central Bank Code Determination for Austria. Supplier and customer invoice items are both displayed in the Payables and Receivables central bank reporting work lists. You must therefore ensure that you select a supplier invoice in order to edit the central bank code determination list for supplier invoicing. 1. Select the company that is performing the central bank reporting. 2. If relevant for this rule, select a product type. To do this, under Product Type, select * (asterisk) and choose the operator EQ - Equals To; browse for the product type using the Open Selection Dialog. 3. If relevant for this rule, select a product ID. 4. If relevant for this rule, select a product category. 5. Select a code that corresponds to the combination of selections you made for the different attributes. If necessary, use the arrow buttons to reorder the rules so the most specific rule is first and the most generic rule is last. Click Save and Activate . The sequence of rules in the list is important as the code determination works from top to bottom. Create the most specific rule at the top of the list, and the most general or default rule at the very end. Insert new rules where necessary to maintain the integrity of the code determination sequence. You are only required to report cross border services and transit trade goods to Statistik Austria. You should therefore create a rule in central bank reporting to exclude other goods that are not transit trade. To automatically exclude non-transit-trade goods from central bank reporting, you should do the following:

If required, select the relevant company. Select Material as the product type. Choose Transit Trade equals to No. Do not enter any central bank code, that is, leave it empty.
Reported In is automatically changed to False. Any entries for non-transit-trade goods are then hidden from the central bank reporting list.
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Follow-On Activities Determination of International Organizations for Central Bank Reporting

If a customer or supplier is or belongs to an international development organization, any trading activities with this organization are relevant for central bank reporting. You should then create central bank code determination rules for this international organization in the Determination of International Organizations for Central Bank Reporting activity. For information see, Configuration: Determination of International Organizations for Central Bank Reporting [117].
Central Bank Reporting Exclusion

If a company in your organization is not relevant for central bank reporting, you should exclude its activities from central bank reporting. For example, if the company only has local business partners. For more information, see Configuration: Central Bank Reporting Exclusion
3.5.8.3.2 Configuration: Determination of International Organizations for Central Bank Reporting Austria Overview
When your business partner belongs to or is considered to be an international development organization, it is subject to central bank reporting. Trading with this customer or supplier is subsequently reported to as part of your companys regular central bank reporting. International organizations have this status because of their international, multilateral, or diplomatic status. Examples of international organizations include the United Nations, the World Health Organization, and the International Committee of the Red Cross. Business partners who are assigned to an international organization retain their country code, as this corresponds to their invoicing address. These partners are also assigned a country for reporting code which uniquely identifies the international organization to which they are assigned. For partners assigned to international organizations, the country for reporting code is used to summarize central bank report data. You can create central bank code determination rules for international organizations in the Determination of International Organizations for Central Bank Reporting activity. They can also be created or edited in the Central Bank Reporting view of the Payables or the Receivables work centers. This document contains details and instructions regarding configuration settings. Such settings are normally performed by a key user. If you do not have the required authorization, contact your key user. Business Configuration Implementation Projects view. Select your implementation To find this activity, go to the project and click Open Activity List . Select the Fine-Tune phase, then select the activity from the activity list.
Settings
The controls and possible settings in this fine-tuning activity are explained below.
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Settings S. No
Explanation This serial number is automatically created by the system and uniquely identifies each line in the rule list. The rules will be applied in this order. You cannot change this value. The business partner ID identifies the party who belongs to or is considered to be an international organization.
Business Partner ID
Country of Company This is the country of your company address. International Organization A standard list of international organization codes is delivered with the solution and cannot be changed. This list is provided by Statistik Austria. All international development organizations, regardless of the country where the organization is based, are considered foreign business parties for central bank reporting purposes.
Assigning a Business Partner to an International Organization

1. In the fine-tune phase of business configuration, open the Determination of International Organizations for Central Bank Reporting activity. Alternatively, in the Payables or Receivables work center, open the Periodic Tasks view and select Central Bank Reporting. Choose Austria from the list of countries. Click Action Maintain International Organizations for Central Bank Reporting . 2. To assign a business partner, click Add Row . Under Business Partner ID, select * (asterisk) and choose the relevant business partner. To do this, select the operator EQ - Equals To and browse for the business partner using the Open Dialog Selection.

Under Country, select your country from the list. Under International Organization, select the relevant organization.
3. If necessary, use the arrow buttons to reorder the rules so the most specific rule is first and the most generic rule is last. Click Save and Activate . The sequence of rules is important as code determination works from top to bottom. You should therefore create the most specific rule at the top of the list and the most general rule should be last.
See Also
Configuration Guide for Central Bank Code Determination - Austria [114]
3.5.8.3.3 Configuration Guide for Central Bank Code Determination France

When a user creates an invoicing document (invoice or credit memo) for a foreign business partner, certain information in this document may need to be reported to the Banque de France, the French central bank. In the Central Bank Code Determination France configuration activity, you can create rules that map the relevant invoice line attributes to the official central bank code. A rule consists of one or more attribute values, which are then assigned a central bank code. The system uses specific attributes of each document line item to automatically determine the applicable central bank code.
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This document contains details and instructions regarding configuration settings. Such settings are normally performed by a key user. If you do not have the required authorization, contact your key user. Business Configuration Implementation Projects view. Select your implementation To find this activity, go to the project and click Open Activity List . Select the Fine-Tune phase, then select the activity from the activity list.
Prerequisites
In the Central Bank Code Determination France activity, click Central Bank Code Determination for Customer Invoicing - France. After the implementation project is complete, you can also access this fine-tune activity from the Central Bank Reporting view, which is under Periodic Tasks in the Receivables work center . Select France from the countries available and then select a customer invoice line item from the list. Finally, click Actions and choose Central Bank Code Determination for France. Supplier and customer invoice items are both displayed in the Payables and Receivables central bank reporting work lists. You must therefore ensure that you select a customer invoice in order to edit the central bank code determination list for customer invoicing. 1. Select the company that is performing the central bank reporting. 2. If relevant for this rule, select a product type. To do this, under Product Type, select * (asterisk) and choose the operator EQ - Equals To; browse for the product type using the Open Selection Dialog. 3. If relevant for this rule, select a product ID. 4. If relevant for this rule, select a product category. 5. Select a code that corresponds to the combination of selections you made for the different attributes. If necessary, use the arrow buttons to reorder the rules so the most specific rule is first and the most generic rule is last. Click Save and Activate . The sequence of rules in the list is important as the code determination works from top to bottom. Create the most specific rule at the top of the list, and the most general or default rule at the very end. Insert new rules where necessary to maintain the integrity of the code determination sequence.
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In the Central Bank Code Determination France activity, click Central Bank Code Determination for Supplier Invoicing - France. After the implementation project is complete, you can also access this fine-tune activity from the Central Bank Reporting view, which is under Periodic Tasks in the Payables work center . Select France from the countries available and then select a supplier invoice line item from the list. Finally, click Actions and choose Central Bank Code Determination for France. Supplier and customer invoice items are both displayed in the Payables and Receivables central bank reporting work lists. You must therefore ensure that you select a supplier invoice in order to edit the central bank code determination list for supplier invoicing. 1. Select the company that is performing the central bank reporting. 2. If relevant for this rule, select a product type. To do this, under Product Type, select * (asterisk) and choose the operator EQ - Equals To; browse for the product type using the Open Selection Dialog. 3. If relevant for this rule, select a product ID. 4. If relevant for this rule, select a product category. 5. Select a code that corresponds to the combination of selections you made for the different attributes. If necessary, use the arrow buttons to reorder the rules so the most specific rule is first and the most generic rule is last. Click Save and Activate . The sequence of rules in the list is important as the code determination works from top to bottom. Create the most specific rule at the top of the list, and the most general or default rule at the very end. Insert new rules where necessary to maintain the integrity of the code determination sequence.
Follow-On Activities Central Bank Reporting Exclusion

If a company in your organization is not relevant for central bank reporting, you should exclude its activities from central bank reporting. For example, if the company only has local business partners. For more information, see Central Bank Reporting Exclusion
3.5.8.3.4 Configuration Guide for Central Bank Code Determination Germany

When a user creates an invoicing document (invoice or credit memo) for a foreign business partner, certain information in this document may need to be reported to the Deutsche Bundesbank, the German central bank. In the Central Bank Code Determination Germany configuration activity, you can create rules that map the relevant invoice line attributes to the official central bank code or chapter number. The system uses specific attributes of each document line item to automatically determine the applicable chapter number or central bank code.
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This document contains details and instructions regarding configuration settings. Such settings are normally performed by a key user. If you do not have the required authorization, contact your key user. Business Configuration Implementation Projects view. Select your implementation To find this activity, go to the project and click Open Activity List . Select the Fine-Tune phase, then select the activity from the activity list.
Prerequisites
In the Central Bank Code Determination Germany activity, click Central Bank Code Determination for Customer Invoicing - Germany. After the implementation project is complete, you can also access this fine-tune activity from the Central Bank Reporting view, which is under Periodic Tasks in the Receivables work center . Select Germany from the countries available and then select a customer invoice line item from the list. Finally, click Actions and choose Central Bank Code Determination for Germany. Supplier and customer invoice items are both displayed in the Payables and Receivables central bank reporting work lists. You must therefore ensure that you select a customer invoice in order to edit the central bank code determination list for customer invoicing. 1. Select the company that is performing the central bank reporting. 2. If relevant for this rule, select a product type. To do this, under Product Type, select * (asterisk) and choose the operator EQ - Equals To; browse for the product type using the Open Selection Dialog. 3. If relevant for this rule, select a product ID. 4. If relevant for this rule, select a product category. 5. Select a code that corresponds to the combination of selections you made for the different attributes. If necessary, use the arrow buttons to reorder the rules so the most specific rule is first and the most generic rule is last. Click Save and Activate . The sequence of rules in the list is important as the code determination works from top to bottom. Create the most specific rule at the top of the list, and the most general or default rule at the very end. Insert new rules where necessary to maintain the integrity of the code determination sequence.
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In the Central Bank Code Determination Germany activity, click Central Bank Code Determination for Supplier Invoicing - Germany. After the implementation project is complete, you can also access this fine-tune activity from the Central Bank Reporting view, which is under Periodic Tasks in the Payables work center . Select Germany from the countries available and then select a supplier invoice line item from the list. Finally, click Actions and choose Central Bank Code Determination for Germany. Supplier and customer invoice items are both displayed in the Payables and Receivables central bank reporting work lists. You must therefore ensure that you select a supplier invoice in order to edit the central bank code determination list for supplier invoicing. 1. Select the company that is performing the central bank reporting. 2. If relevant for this rule, select a product type. To do this, under Product Type, select * (asterisk) and choose the operator EQ - Equals To; browse for the product type using the Open Selection Dialog. 3. If relevant for this rule, select a product ID. 4. If relevant for this rule, select a product category. 5. Select a code that corresponds to the combination of selections you made for the different attributes. If necessary, use the arrow buttons to reorder the rules so the most specific rule is first and the most generic rule is last. Click Save and Activate . The sequence of rules in the list is important as the code determination works from top to bottom. Create the most specific rule at the top of the list, and the most general or default rule at the very end. Insert new rules where necessary to maintain the integrity of the code determination sequence.
Follow-On Activities Central Bank Reporting Exclusion

If a company in your organization is not relevant for central bank reporting, you should exclude its activities from central bank reporting. For example, if the company only has local business partners. For more information, see Central Bank Reporting Exclusion
3.6 Reports
3.6.1 Aging List for Payables Overview
This report displays for each supplier your overdue payables according to a specific key date and aging period.
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Features Running the Report

Before running the report, you specify the data that you want to display by selecting variables. You must specify a value for all mandatory variables. In the system, mandatory variables are indicated by an asterisk (*). Some variables are explained below:
Key Date The key date always corresponds to the transaction date of the open items and not to the posting date. The system considers only items with a transaction date before the key date. Period 1 through Period 4 You can specify four aging periods to group your overdue payables. These periods are calculated from the specified key date. In the default display, the period structure is as follows: 30 days (period 1), 60 days (period 2), 90 days (period 3), 120 days (period 4). This means, for example, that period 2 displays the overdue payables with a due date between 31 and 60 days in the past, regardless of whether they are cleared on the current date. These values can be changed.
For more information about the standard variables, see Overview of Reports in Financial Management.
Analyzing the Report

In addition to the overdue payables, the report also displays for each period the payables that are not yet due and the total amount of payables (the total overdue items and items not yet due). Note the following for the individual document types:

Supplier invoices are displayed as negative amounts. Supplier credit memos are displayed as positive amounts. Payments do not have a specific due date. The net due date displayed therefore corresponds to the transaction date.
The data in this report is displayed in table format. You have the following options for analyzing the report:

You can restrict the data that is displayed. To do this, choose Filter. To further analyze data in this report, you can drag characteristics to rows and columns. From the open items displayed, you can drill down to the relevant details. To do this, select the appropriate value and open the corresponding menu. To be able to navigate to the source document, add the following characteristics to the report:

Source Document Type Document Number and/or External Reference
You must insert Source Document Type to the left of Document Number and External Reference. You can then navigate to the source document from Document Number or External Reference.
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See Also

Reports View Overview of Reports in Financial Management Overview of Data Sources in Financial Management
3.6.2 Forecast List for Payables Overview

This report displays for each supplier your open payables for which the due date is after the specified key date and lies in the future. The report also lists open items that your suppliers need to pay you. Canceled items are not included.
Views
This report offers you the following views:
Forecast List for Payables - (Standard) Displays the following for each supplier: the amount already overdue on the key date, future aging periods, total future due amount, open total amount. The due date calculation refers to the net due date (payment target). Normal Cash Discount Displays the following for each supplier: the amount already overdue on the key date, future aging periods, total future due amount, open total amount. The due date calculation refers to the due date of the normal cash discount, as shown in the example below: Cash discount terms 2. Maximum Cash Discount Displays the following for each supplier: the amount already overdue on the key date, future aging periods, total future due amount, open total amount. The due date calculation refers to the due date of the maximum cash discount, as shown in the example below: Cash discount terms 1.
You receive an invoice dated 07/01/09 with the following payment terms:

1) Payment within 8 days: 3 % cash discount 2) Payment within 14 days: 2% cash discount 3) Payment within 30 days: Net
This means that there are three possible due dates for this invoice:

Cash discount term 1) (maximum cash discount): Can be paid up to 09.07.09 Cash discount term 2) (normal cash discount): Can be paid up to 15.07.09 Net (payment target: term 3): Can be paid up to 31.07.09
The system displays different net amount and aging periods for the invoice, depending on the view you select. Depending on the view used, the invoices are grouped by net due date, due date with normal cash discount, or due date with maximum cash discount.
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Key Date The key date always corresponds to the transaction date of the open items and not to the posting date. The system considers only items with a transaction date before the key date. Period 1 through Period 4 You can specify four aging periods to group your payables due at a future date. These periods are calculated from the specified key date. In the default display, the period structure is as follows: 30 days (period 1), 60 days (period 2), 90 days (period 3), 120 days (period 4). This means, for example, that period 2 displays the payables due from day 31 through 60 after the specified key date. These values can be changed.

In addition to the items due for each period in the future, the report displays the payables overdue on the key date and the total amount of all open items (total overdue and not yet due items). Note the following for the individual document types:

Supplier invoices are displayed as negative amounts. Supplier credit memos are displayed as positive amounts. Payments do not have a specific due date. The due date displayed therefore corresponds to the transaction date.
You have the following options for analyzing the report:

You can restrict the data that is displayed. To do this, choose Filter. To further analyze data in this report, you can drag characteristics to rows and columns. From the open items, you can drill down to the relevant details. To do this, select the appropriate value and open the corresponding menu. To be able to navigate to the source document, add the following characteristics to the report:

See Also
Reports View
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Overview of Reports in Financial Management Overview of Data Sources in Financial Management
3.6.3 Details to Items of Suppliers Overview

This report lists all items for a supplier for a particular period. Canceled items are not included.

Entry Date The system takes the previous two weeks as the default value for the documents entered. Item Status You can restrict the display to a specific item status, such as open, cleared, or unassigned. For this, use the input help.

The report displays for each item the full document amount as well as any cash discount available or taken, and amounts outstanding. The dunning level is also displayed for any overdue items. The data in this report is displayed in table format. You have the following options for analyzing the report:

You can restrict the data that is displayed. To do this, choose Filter. To further analyze data in this report, you can drag characteristics to rows and columns. From each supplier displayed, you can drill down to the relevant details. To do this, select the appropriate value and open the corresponding menu. To be able to navigate to the source document, add the following characteristics to the report:

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See Also

3.6.4 Details to Open Items of Suppliers Overview

This report lists the open items for each supplier for a specific key date. Canceled items are not included.
Views
Open Item List Suppliers (Standard) This view displays for each supplier all the open items for a specific key date as well as information about any cash discount available or taken. Open Item List All Items By Suppliers Displays a list of all the open items by document number in ascending order. Open Item List Summary By Suppliers Shows the total number of open items for all or a selection of customers. Open Item List Reconciliation Displays the open items for each supplier and transaction currency. You use this view for technical reconciliation on the basis of the Accounts Payable Reconciliation report. For more information, see Accounts Payable Reconciliation.

Before running the report, you specify the data that you want to display by selecting variables. You must specify a value for all mandatory variables. In the system, mandatory variables are indicated by an asterisk (*). When doing so, note the following:
Key Date The key date always corresponds to the transaction date of the open items and not to the posting date. The system displays only items with a transaction date before the key date.

The data in this report is displayed in table format.
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Note the following for the individual document types:

Supplier invoices are displayed as negative amounts. Supplier credit memos are displayed as positive amounts. Payments do not have a specific due date. The net due date displayed therefore corresponds to the transaction date.

You can restrict the data that is displayed. To do this, choose Filter. To further analyze data in this report, you can drag characteristics to rows and columns. You can call up the corresponding detailed information for the open items displayed. To do this, select the appropriate value and open the corresponding menu. To be able to navigate to the source document, add the following characteristics to the report:

See Also

3.6.5 Payment Statistics - Suppliers Overview

The report provides an overview of your company's payment behavior towards its suppliers for a specific period. Canceled items are not included.

Before running the report, you can specify the data that you want to see by making value selections for variables. You must make a value selection for all mandatory variables. In the system, mandatory variables are indicated by an asterisk (*). Additional information is available for the following selected variable:
Proposed Posting Date The system takes the previous two weeks as the default value for the documents entered.
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This report displays the following: the number of days from the invoice receipt until payment (payables), payment amount, average number of days until the net due date, number of overdue days in the specified period in percent, and the permitted, claimed, and forfeited cash discount. The data in this report is displayed in table format. You have the following options for analyzing the report:

You can restrict the data that is displayed. To do this, choose Filter. To further analyze data in this report, you can drag characteristics to rows and columns. From each supplier displayed, you can drill down to the relevant details. To do this, select the appropriate value and open the corresponding menu.
See Also

3.6.6 Payment Statistics Cash Discount Overview

The report displays an overview of all the cash discounts that your company has taken or lost while making payments over a given period of time. All the cash discounts that your company is still allowed to use are also shown. Canceled items are not included.
Views
Payment Statistics Cash Discounts Displays all the cash discounts, including all those taken or not used, over a given period of time, as well as all the cash discounts that are currently available. The default value for this period is 365 days. Payment Statistics Top Lost Cash Discounts Displays the ten highest discount amounts that were not used over the last 365 days.

Before running the report, you can specify the data that you want to see by making value selections for variables. You must make a value selection for all mandatory variables. In the system, mandatory variables are indicated by an asterisk (*). Additional information is available for the following selected variables:
Clearing Date
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You can restrict the display to payments that were cleared within the specified period of time, such as the current month or the last 14 days. The default value for this variable is the last 365 days.
Display Currency This report is displayed in the company currency as standard. However, you can also run the report in a different currency. Display Currency Conversion Date If you want to run this report in a currency that differs from the company currency, you can specify the conversion date. The current date is taken as the standard conversion date.

This report displays the amount of the cash discounts that your company has taken or lost or is still allowed to use for each supplier. Additional information is available for the following key figures:
Cash Discount Allowed Shows the cash discount that you are allowed or were allowed to use for a particular payment. Cash Discount Taken Shows the cash discount that you were allowed to use according to your supplier and that you have taken. Additional Cash Discount Taken Shows the cash discount that you have taken in addition to the amount that you were allowed to use according to your supplier. This means that it is the difference between the total cash discount amount taken and the allowed cash discount amount. Cash Discount Lost Shows the cash discount that you would have been allowed to use but that you did not take.

You can restrict the data that is displayed. To do this, click on the filter symbol and select the required values. To further analyze data in this report, you can drag characteristics to rows and columns. You can use the individual suppliers displayed to navigate directly to an overview of their master data. To do this, select the appropriate value and open the corresponding menu. If you want to display more lost discount amounts than displayed in the standard view, proceed as follows: Under Columns, choose the Key Figures dropdown list and then Manage Conditions. In the dialog box displayed, choose Edit. On the Edit Conditions screen in the From Value column, overwrite the displayed value and enter the required number of rows. You can save your changes and set the modified view to be your standard. For more information, see Conditions.
From this report, you can navigate to:

Business Partner Overview Details for All Items Suppliers Payment Statistics Suppliers [128] To be able to navigate to the source document, add the following characteristics to the report:

You must insert Source Document Type to the left of Document Number and External Reference.
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You can then navigate to the source document from Document Number or External Reference.
See Also

3.6.7 Supplier List Overview

The supplier list shows a list of all the suppliers that are in the system. You can view various data for suppliers, such as:

Business partner ID and name Address data Status Creation date User who created the record
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4 Receivables
4.1.1 Open Items Receivables Overview
You can display open item lists for customer accounts. Open items are posted open invoices from goods and services or credit memos that were not yet paid. The lists of open items of all customers help you to recognize your customers' outstanding payments and to collect them in a timely fashion with optimized dunning. You also get an overview for which customer accounts you still need to edit open items.
Prerequisites
To display open items, you must have already entered and posted a customer invoice in the system. If you have not assigned a company to a customer when you create the master data, the system attempts to do this automatically when the first invoice is posted. The company is derived using the sales company that created the invoice and using Organizational Management. You can also assign the company yourself. To do this, proceed as follows: 1. In the Receivables work center, open the Customers view and subview. 2. Select the appropriate customer and choose Edit A dialog box appears. Financial Data.
3. Choose the Payment Data area. You can use Add Row to create a new customer account and enter the company. 4. Set up the account determination groups. Once you have finished saving, the system creates a new customer account in the subledger. For more information, see Business Configuration of Account Determination for a Business Transaction.
View of the Lists of Open Items

To get an overview of your open items, select the Reports view in the Receivables work center. You find the following reports in this list that display information about your customers' open items:
Open Item List - Customers The report displays the open items for each customer for a specific key date. Item List - Customers The reports displays all items - open, cleared, and partially cleared - for each customer for a specific period. You can also only display the open items of your customers for a selected period. Aging List for Receivables This report displays the overdue open items of your customers, structured by how long they are overdue in days. Forecast List for Receivables This report displays for each customer your open receivables for which the due date is after the specified key date and lies in the future. In this way, you can get an overview of the incoming payments to be expected.
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SAP Business ByDesign FP3.5 Receivables
The reports take the data from the register for trade receivables and payables, replicate this data in a separate database, and import the data according to your selected report profile. Once you have selected a report, you can save different queries to standardize repetitive activities. For example, to create the Open Item List - Customers report, you must enter the company, currency, key date, and conversion date of the display currency. If you leave the Customer entry field empty, the report selects all customers. For the reports Aging List for Receivables and Forecast List for Receivables, you also need to enter the aging/forecast analysis period. You also have the option of selecting a specific customer if you only want to display the open items for that particular customer. In the Item List - Customers report, you can use the status to specify whether only the cleared, partially cleared, or open items should be displayed. If you have saved a query as a selection variant, it appears for selection on the same screen in the Available Variants list. You can change and save a selected selection variant if you want to copy the changes for the existing selection variant. If you want to save the query under a new name, choose Save As. This saves the new query as a selection variant. The following reports are also available to display open items and customer behavior:

Dunning History - Customers Dunning History - Documents Dunning Statistics Payment Statistics - Customers Payment List - Customers
In addition to the option of displaying open items in a report, you can also display the open items of a specific customer using the Customer Account Monitor. For more information, see Customer Account Monitor [133].
See Also
Business Configuration of Account Determination for a Business Transaction Customer Account Monitor [133]
4.1.2 Customer Account Monitor Overview

The customer account monitor provides you with an overview of your customer due items (invoices, payments, credit memos), for example so you can check which payments are expected in the next few days. Based on this, you can decide which follow-up activities you need to perform (for example, initiating a dunning procedure), and you can plan your liquidity. You can also use the customer account monitor when dealing with customer inquiries or when clearing open items in an account. To call up the customer account monitor, proceed as follows: 1. In the Receivables work center, open the Customers view, then the Customer Accounts subview. 2. Select the appropriate customer and choose View . The following tab pages are available in the customer account monitor:
General Data
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Here you can view the customers address, open item totals in the transaction currency, and valuated balances in the company currency. You can also see dunning information, the credit limit, and accounting data, such as the company currency or the default set of books. You can also access the supplier account if you have defined the roles of both supplier and customer in the master data records.
Trade Receivables Invoices/Payments Here you can view all the transactions made on a particular customer account. You can also create manual payments and start the manual clearing of payments. You can filter the invoices, credit memos, and payments according to their status as follows: Open Items shows open items and partially cleared items.

Cleared Items shows cleared items and canceled items. All Items shows all items.
You can choose whether to include statistical items, such as down payment requests and bill of exchange requests, in the display. The information about the items is presented in table format and includes: status, external reference, document type, document date, net due date, posting date, open amount in transaction currency, and clearing ID. In the detail area below the table, additional information is displayed about the item selected in the table. This includes the amount in the transaction currency, the cash discount amount, the payment terms and due dates, dunning details, the payment method, and payment block details. You can set or reset dunning blocks under Actions . The (optional) columns Document Amount in Transaction Currency or Cleared Amounts may show a sum that is not equal to zero. This means that the sum of the payments and credit memos does not equal the sum of the invoices. This happens when an item is transferred to another account or a discount is taken.
Trade Receivables Postings Here you can view all the transactions made on a particular customer account within a specified period. The display also includes opening and closing balances for the period in question. You can choose to include journal entries that are not relevant for the general ledger in order to explain open item amounts. It is also possible to sort according to open item reference ID in order to view associated debit and credit entries together. Changes Here you can view the change history for a particular customer account. Reports Here you can run reports on balances, as well as access reports on aging, forecasts, and dunning for the selected customer.
Features Line Item Details

In the line item details, you can see the status, due date, amount, cash discount amount, clearing document ID, and Created On date, as well as other information for each invoice, credit memo, or payment. You can also view all the journal entries related to this item. For items that have not yet been included in any clearing or payment processes and have the status Open, you can make changes to cash discount terms, dunning, or payment method/block information.
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Split Items
If there is only a partial payment for an invoice that leads to a partial clearing of the invoice, the system creates split items for this invoice with split item IDs. Each of these split items has its own status (Open or Cleared). An invoice that is only partially cleared therefore has precisely one open split item.
New Charge/Credit
You can use this function to create a new open item for which an invoice does not currently exist, for example, to portray fees or rental payments. You might enter an item for dunning fees and then clear it once the fees have been paid, for example. However, this function is not to be used to replace an invoice. When you manually enter open items in this way, you cannot assign any payment terms.
Manual Clearing
The manual clearing function on the Invoices/Payments subtab of the Trade Receivables tab enables you to manually clear customer payments with outstanding invoices if the system was not able to perform clearing automatically. You can also clear credit memos with invoices or outgoing payments from the customer (for example, refund by bank transfer or other refunds) with credit memos. When you perform clearing, the balance of the selected items may not result in zero. Differences can be written off or kept as remaining open items, which can be cleared later with future payments. To start manual clearing, proceed as follows: 1. Select the appropriate invoices and choose Clear Manually . The New Manual Clearing screen appears. You see the Open Items table. The system checks whether the items are already in clearing (whether a payment proposal has already been created for these items). The available items are displayed for editing. 2. Select the relevant open items and choose Match Items . You see the total balance of the selected items in the upper area of the screen. If you use the function for splitting open items, you can use the customer account monitor to perform manual clearing only (not automatic). The items have the same external reference and must therefore be cleared manually and included in separate clearings.
Manual Payment
The manual payment function ( Pay Manually By ) on the Invoices/Payments subtab of the Trade Receivables tab enables you to pay invoices or credit memos, for example by check, bank transfer, or direct debit. The payment methods available are based on your definition in the customer master data. It is always possible to create an incoming check.
Underpayment
If a difference arises because the payments received are smaller than the invoice amount and lead to a miscellaneous operating cost, you can represent this as follows:
You can distribute the difference amount to the selected items together: 1. Choose Clear Manually . 2. Choose Apply Discount or Credit . 3. Enter the amount and reason. The system distributes the complete amount of the difference to the items.
You can distribute the difference amount to selected items individually: 1. Choose Clear Manually .
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2. Select the appropriate item in the table. 3. Choose Additional Discounts and Credits . 4. Choose Add Row . 5. Enter the amount and reason. The precise behavior is also dependent on the settings made for the clearing strategy in Fine-Tuning. The system performs the tax consolidation associated with the underpayment automatically.
Loss on Receivable in the Event of Insolvency

You can also write off an open item for which no payment has been received and for which you no longer expect an incoming payment. This may be due to a customers insolvency (bad debts), for example. To write off a bad debt, proceed as follows: 1. In the customer account monitor, filter for open items. The system displays open and partially cleared items. 2. Select the open invoice(s). 3. Choose Clear Manually . 4. Under Other Discounts/Credits, enter the full amount and choose the reason S01 - Insolvency. 5. Choose Clear . The receivable is written off or depreciated in financial accounting on the Write Down of Current Assets account. The account is determined using account determination. The VAT that has already been paid is automatically recalculated and corrected accordingly on the tax account. In the General Ledger work center under Journal Entries, you reclassify the receivable to doubtful debts, set up the reserves for bad debts, and clear the provisions from doubtful debts. For more information, see Reserves for Bad Debt.
Overpayment
If a difference arises from an incoming payment that is greater than the invoice amount, you can assign the total payment amount to the customer account and leave the amount on the customer account as an on account payment. If the system was able to allocate payments to the open invoices based on invoice references and clearing has taken place, the system still creates a task for payment clearing in the event of overpayments. This is dependent on the settings for the clearing strategy in Fine-Tuning. You have the following options for handling the difference:
In the Receivables work center in the Payment Clearing view, you can leave the remaining balance as an on account payment. You can contact your customer and refund the overpaid amount. You can clear the difference amount manually: 1. Choose Clear Manually . 2. Select the relevant items. 3. Choose Apply Discount or Credit and enter a reason for the difference and the amount. The system does not make any tax adjustments with respect to the overpaid amount. To make a tax adjustment for the overpaid amount, you use the Manual Tax Entries view of the Tax Management work center.
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Reset Clearing
You can reset clearing, for example, if an invoice has been allocated to the wrong payment and then cleared. To do this, proceed as follows: If you need to cancel a customer invoice that has already been paid, first reverse the clearing in the Receivables work center then cancel the invoice in the Customer Invoicing work center. If you first cancel the customer invoice in the Customer Invoicing work center, the original clearing still exists and the system generates a new open item (reversal document). If you have already transferred the source invoice manually to another account, a reversal item is displayed on the original account. Transfer the reversal item in the same way as the source invoice. Then you can clear the source invoice with the reversal document. For more information, see Canceling a Customer Invoice [53]. 1. In the customer account monitor, go to the Invoices/Payments subtab of the Trade Receivables tab, and filter for cleared items. 2. Select the item for which you want to undo clearing and choose Clearing Document . 3. Choose View All . You see a list with the clearing documents for this item. 4. Choose Reset Clearing . 5. Enter a cancellation date and document description (if desired). 6. Choose OK . The item is no longer cleared and is displayed with the status Open or Partially Cleared.
Clearing When Canceling an Invoice

If you create a partially or completely-cleared invoice, or an invoice with reference to a down payment, the system automatically clears part of the invoice. Typically, the invoice remains partially open, and the down payment is cleared. However, both the invoice and down payment can be partially cleared, depending on your choice of amounts. If you cancel this invoice, the system creates a cancellation invoice. Furthermore, a cancellation document is created in the payables and receivables register. You now have the following options for clearing:
Reverse clearing for the invoice in the customer account monitor and then clear the invoice manually with the cancellation invoice. The invoice and cancellation invoice then have the status Cleared and the down payment has the status Open. If you would rather not involve the clearing document for the invoice, possibly because you have defined a cash discount or other deductions for additional documents that also need to be cleared, you can use the cancellation invoice to clear other open items (in the same way as for a credit memo). If these considerations are not applicable, and if there are no further items available for clearing, you can use the manual payment function ( Pay Manually By ) in the customer account monitor to create a payment for the cancellation invoice. A customer invoice is then paid in the same way as a credit memo. For more information, see Down Payments Received in Financials [140] and Customer Down Payments.
Other Functions
You can also do the following in the Invoices/Payments subtab of the Trade Receivables tab:

Make single or multiple repostings of payments or invoices Transfer all items to another customer account
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Split open items You can split a payment between different reconciliation accounts, for example, to portray a security deposit for a house purchase. You may also want to split an open item over a number of due dates to cater for installment payments. Export the details of a customer account to Microsoft Excel Set or reset payment blocks or dunning blocks The payment block only applies to payments that are triggered by your company. Incoming payments are not affected by this. The payment block does not result in a delivery block.
Integration
If you have a customer who is also a supplier, you can also see them in the supplier account monitor in the Payables work center. You must create the master data of this business partner twice. For more information, see Business Partners.
See Also
Payment Allocation and Clearing [188] Contracts in Receivables
4.1.3 Automatic Dunning Overview

From time to time your company may have outstanding receivables against customers. To remind customers about amounts due, you can use dunning notices or payment reminders. The usual case is that a customer has not paid an invoice. The dunning run enables you to schedule the system to determine on a regular basis all the invoices, down payment requests, or bills of exchange receivable for which payment is overdue or due shortly. A dunning proposal list is then issued. You can check and edit this list before the dunning notices or payment reminders are created. You review the dunning proposal list to check whether any reasons exist for not sending a dunning notice. The dunning run determines the receivables proposed for dunning based on the entries in the dunning strategy, which are entered in configuration. After you have checked and made any changes to the dunning proposal list, it can be released. Once you have released the dunning proposals, the dunning notices or payment reminders are sent to your customers by fax or e-mail, or printed in the form of dunning letters.
Prerequisites
You have made the following predefined settings in configuration and for master data: Scoping You have entered the country-specific dunning procedures. Fine-Tuning You have defined the dunning strategy in the Business Configuration work center under Tune Cash Flow Management . Activity List Fine-
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You can specify the dunning strategies that the system should use when creating a dunning proposal list. These settings directly influence when the overdue items are included in the dunning proposal. Master Data In the Application and User Management work center, you can set the dunning form that you want to use and specify how it should be sent.
Process Flow
Create and Schedule a Dunning Proposal List You create and schedule the dunning proposal list using the dunning run. In the Receivables work center, choose Periodic Tasks Dunning Runs . For more information, see Quick Guide for Dunning Runs (Receivables) [156].
Select Items for the Dunning Proposal List Based on the criteria that you entered when performing the dunning run, the system determines all the items for your company and the corresponding customers. Depending on your settings in the dunning strategy, the system only determines the items overdue for a minimum period. The dunning process generally includes receivables. If a receivable is not listed in the dunning proposal, this could be due to one of the following reasons:
You have not defined a dunning level for the document type (invoice, down payment request, bill of exchange receivable). The receivable has already been dunned and the next dunning level not yet reached. The highest dunning level has already been reached. You have agreed with your customer or supplier that payments will be made by direct debit. You specify the payment agreements under Receivables Customers Financial Data .
You have locked the receivable for dunning. You have locked the customer for dunning.
List Receivables with Highest Dunning Level Overdue payment items can be dunned in accordance with the configured steps. If all the steps have been performed, the affected items will not be selected in an additional dunning run. We advise against using these items in an additional dunning document to prevent the previous correspondence becoming invalid. A company would then usually take legal action. If you want to list the items that have already reached the highest dunning level, proceed as follows: 1. In the Receivables work center, choose Reports. 2. Choose the report Dunning History By Document. 3. Choose the date up to which you want to search for data. 4. Copy the Dunning Level free characteristic into your column selection and sort the characteristic in descending order so that the highest value is at the top of the list. You can also filter by the highest dunning level. Edit Dunning Proposals You edit dunning proposals in the Dunning view. Choose Receivables and then the Dunning view. For more information, see Quick Guide for Dunning (Receivables) [155]. You can use the following reports to perform dunning evaluations. The reports can be found under Receivables Reports .
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See Also
Dunning History - Documents [178] Dunning Statistics [179]
4.1.4 Down Payments Received in Financials Overview

Before goods are produced or services provided, it is sometimes necessary to receive a down payment on an invoice amount from the customer. You company then sends a down payment request to the customer. The down payment request is displayed in the system in the receivables balance as a statistical open item that is part of the balance confirmation request, and that can be dunned and paid. The amount from the down payment request is not initially posted to accounting, nor is the tax amount initially entered in the tax entries. This first occurs when your company receives the payment. Once your company has received the payment, which clears the payment request, the tax amounts are updated and used for the tax return. Entries are also made in the corresponding G/L accounts. If your company issues a final invoice, the received down payment is assigned automatically to the invoice if the references match. A transfer posting is made from the Down Payments Received account to the Receivables account. The tax entry resulting from the down payment received is cancelled and a new tax entry is entered using the amount from the total invoice. The remaining amount can now be cleared with the total payment. For more information on postings for down payments, see Postings for Down Payments (Gross Method) [331].
Prerequisites
The accounts for down payments are provided in the Business Configuration work center in the Activity List view and the Fine-Tune step. To navigate to this step, choose Financial and Management Accounting Chart of Accounts, Financial Reporting Structures, Account Determination Accounts Payable or Accounts Receivable . For more information about account determination, see Business Configuration of Account Determination for a Business Transaction and Reconciliation Accounts.
Process Flow
1. Create Down Payment Request You create a new down payment request in the Customer Invoicing work center. For more information, see Down Payments from Customers. 2. Display Customer Account To display the down payment request with the status Open, in the Receivables work center, choose the views Customers Customer Accounts . The customer account monitor is displayed. 3. Create Payment for Down Payment Request To create a payment for the down payment request, go to the Trade Receivables tab in the Customer Account Monitor and choose, for example, the action Pay Manually By Incoming Check.
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You can include other payments for this incoming check. If the customer has transferred an amount smaller than that displayed in the down payment request, you can specify the difference amount as a deduction. The system does not currently support partial payments. Once you release the check, the down payment request is paid. After clearing, the status of the down payment request changes from Open to Cleared. The system generates a new item, namely a down payment, with the status Open. Once you have released the check, you can view the document flow by choosing View All Incoming Check . You see that the check was posted as a down payment received and that a provisional tax amount has been entered. Partial clearing for down payment requests is not supported. Only the full amount can be cleared. 4. Enter Final Invoice You can create final invoices in the Customer Invoicing work center. Using the Down Payments tab, the system proposes the down payments that exist for the customer account. For more information on invoice entry, see Customer Invoice Processing. If the amount of the down payment received matches the attributable amount displayed in the invoice for this down payment, the invoice is cleared automatically. The tax amount is posted automatically during automatic clearing. The tax entry resulting from the down payment received is cancelled and a new tax entry is entered using the total tax amount from the invoice. In the following cases, the system creates a task for manual clearing, which the processor accepts, if the amounts match or differ only slightly, or enters manually, if a down payment already exists: The system does not find a down payment for the final invoice.

The system finds a down payment that is used elsewhere. The amounts in the down payment and the item in the final invoice do not match.
5. Enter Total Payment Reversing Down Payment Requests, Down Payments, and Total Invoices You can make a down payment request invalid in the Customer Invoicing work center prior to posting, as long as it has not yet been paid. If you have already received the down payment and entered it in the system, you must first reverse clearing in the customer account monitor. For more information on reversing clearing, see Customer Account Monitor [133] in the section Clearing When Canceling An Invoice With Reference to a Down Payment. Discount Applied to Customer Invoices with Down Payments During the automatic clearing of a customer invoice (of EUR 1,000, for example) with a down payment (of EUR 100, for example), the system does not post a cash discount. If the system processes the final payment, that is, during the automatic clearing of the final payment, the system calculates the cash discount for the remaining payment. This is EUR 900 in the example. If your customer has applied a greater cash discount, the system creates a task for the user for the payment clearing. If you want to apply the cash discount to the total invoice amount, you can do this when you process the clearing task. To view a task for clearing, choose Receivables Tasks .
For more information, see Cash Discounts for Receivables in Financials [142].
See Also
Postings for Down Payments (Gross Method) [331] Customer Account Monitor [133] Down Payments from Customers Cash Discounts for Receivables in Financials [142]
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4.1.5 Cash Discounts for Receivables in Financials Overview

A customer can deduct a cash discount when paying an invoice. When the corresponding open item is cleared, the cash discount amount is entered either automatically or manually. The system automatically posts the cash discount granted.

Fine-Tuning Configuration settings are normally performed by a key user. If you do not have the required authorization, contact your key user. Cash Discounts for Receivables in Financials is activated in your solution configuration. To find this activity, go to the Business Configuration work center and choose the Implementation Projects view. Select your implementation project and click Open Activity List . Select the Fine-Tune phase, then select the following activities from the activity list:
You need to define the payment terms. To do this, choose Payment Terms .
General Business Data
Accounts
Maintain
There needs to be an account for Granted Cash Discounts and it needs to have been entered in your financial reporting structures and assigned in account determination for the business transaction Cash Discount for Payment/Discount. Choose Financial and Management Accounting Chart of Accounts, Financial Reporting
Structures, Account Determination .
You need to have defined your clearing strategy. To do this, choose Strategies .
Clearing
Automatically Determining Granted Cash Discounts

When the open item was created, the system already calculated any cash discount amounts. For this, the system uses the following data:
Payment terms for each customer: Payment terms have been assigned in the master data of the relevant customer. Payment term for each invoice: Payment terms were assigned during customer invoicing. If payment terms exist for a customer invoice, the system always applies these terms and not the payment terms entered in the master data for that customer. If no payment terms have been assigned during customer invoicing, the system applies the payment terms for the relevant customer.
Cash Discount Deductions for Automatic Incoming Payments

Cash discounts that have been deducted by the customer are taken into account for automatic incoming payments, such as incoming bank transfers on a bank statement. The system compares the cash discount amount that it has calculated for the payment execution date against the cash discount amount actually deducted by the customer. The system uses the clearing strategy to compare the amounts. You can also define grace days for deducting cash discounts
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or set up a rule that always generates a task for underpayment. If the cash discount amount deducted by the customer exceeds the tolerance limits and you have defined a task for underpayment, the item is not cleared, and a task is created. For more information, see Automatic Incoming Payments [35].
Cash Discount Deductions for Manual Incoming Payments

When a manual incoming payment (such as an incoming check) is entered, the system proposes the cash discount amount that has already been determined by the system for the transaction date. You can overwrite the cash discount amount that the system proposes. For more information, see Manual Incoming Payments [40].
Deducting Cash Discounts During Manual Clearing

You can enter a cash discount while manually clearing an open item in the customer account monitor. In the Receivables work center, choose Customers Customer Accounts and proceed as follows:
1. Select the appropriate customer and choose View . 2. Select the items you require and choose Clear Manually . 3. Enter the required amount in the Cash Discount field of the invoice.
Posting a Granted Cash Discount

When a customer invoice is paid, the deducted cash discount is posted using the gross procedure. The VAT is corrected automatically for the payment date of the invoice. Cash discounts are always posted to a separate account for granted cash discounts. For more information, see Discounts: Cash Discounts and Bonuses [339].
Cash Discounts for Partial Payments

If an invoice is only partially cleared, the cash discount is calculated and posted to the payment amount. For example: For an invoice of EUR 1,000 with a 3 % cash discount, a partial payment of EUR 97 is made. In addition to this, the system posts the cash discount of EUR 3 proportionately. This results in a clearing amount of EUR 100. If you are processing an automatic incoming payment, and it has been defined in the system configuration that a task will always be generated for underpayments, the item is not cleared and the system creates a corresponding task. The amounts used in the example are proposed automatically for clearing.
Cash Discounts for Clearing Credit Memos

If the payment terms of the credit memo match those of the invoice (for an invoice-relevant credit memo, for example), a cash discount is posted for both the invoice and the credit memo. For example: For an invoice of EUR 1,000 with a 3 % cash discount, and a credit memo of EUR 100 with a 3% cash discount, a cash discount of EUR 3 is calculated for the clearing amount of EUR 100. The cash discount is posted as a negative amount for the invoice and simultaneously as a positive amount for the credit memo, meaning that no cash discount is paid. If the credit memo has no cash discount terms, such as a subsequent bonus credit memo, a cash discount is calculated and posted to the credit memo during manual clearing. For example: For an invoice of EUR 1,000 with a cash discount of 3 %, and a bonus credit memo of EUR 97 without a cash discount, a cash discount of EUR 3 is posted additionally. This results in a clearing amount of EUR 100.
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Cash Discounts for Down Payments

During the automatic clearing of a customer invoice (of EUR 1,000, for example) with a down payment (of EUR 100, for example), the system does not post a cash discount. If the system processes the final payment, that is, during the automatic clearing of the final payment, the system calculates the cash discount for the remaining payment. This is EUR 900 in the example. If your customer has applied a greater cash discount, the system creates a task for the user for the payment clearing. If you want to apply the cash discount to the total invoice amount, you can do this when you process the clearing task. To view a task for clearing, in the Receivables work center select the Account ID you wish to see. Then click New and choose Task.
Cash Discount Amounts for Point-of-Sale Transactions

Cash discount amounts can be specified explicitly for individual due items from point-of-sale transactions. These cash discounts override the payment terms.
See Also
Customer Account Monitor [133] Automatic Incoming Payments [35] Manual Incoming Payments [40] Configuration: Clearing Strategies
4.1.6 Refund of Payments Received Overview

The refund of payments received is necessary if payments cannot be allocated because they were not intended for your company (incorrect payment by the customers), if the customer has returned goods, or made an overpayment or double payment. A refund by bank transfer is possible in the system in the Payment Management work center in the Payment Allocation view.
Prerequisites
You have made the following predefined settings in configuration:
Scoping
Under Questions Cash Flow Management , you have made the basic settings for your payment processes.
Fine-Tuning
You have selected the following settings in the Business Configuration work center under Tuning Cash Flow Management : Activity List Fine-
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Setting the tolerances in the clearing strategy: You specify which difference between the invoice amount and actual payment by the customer the system accepts and automatically clears the receivables with the received payments. Configuration of the import format for your bank statement: It enables the system to interpret the business transaction codes of the bank and to represent them correctly as disbursement or collection.
Process Flow
After receiving the incoming payments, the system automatically allocates open items (receivables). Due to missing information or incorrect bank transfers by the business partner, there is no automatic allocation and therefore the system cannot perform automatic clearing. This means that manual allocation and clearing is necessary. Depending on the business transaction, the following scenarios are possible:
Automatic allocation and amount difference Manual allocation of the total amount to the debtor and clearing of the total amount
Partial allocation of the total amount to the debtor Clearing of the partial amount
Refund by bank transfer of a partial amount
No allocation and refund of the total amount
Allocation not possible and manual clearing of the total amount Allocation of amounts
Posting of the total amount to the debtor account
Received Incoming Payments that Can Be Allocated

The incoming payment can be allocated to a debtor, however for specific reasons, the system cannot perform automatic clearing. For example, the amount cannot be uniquely allocated or the customer has made deductions that cannot be tracked in the system. In this case, you find the incoming payment in the Receivables Work Center in the Payment Clearing view. Note that an incoming payment is represented with a minus sign in this view because it decreases the receivable.
Manual allocation of the total amount 1. In the Receivables work center, choose Payment Clearing. 2. Display all open items, select the relevant incoming payment, and choose Edit . The Manual Payment Clearing screen appears. 3. To post the amount to the debtor account, choose Assign Payment On Account . 4. Choose Save .
Manual allocation of a partial amount: It is not possible to only accept a part of the amount and to directly refund the amount that is not allocated. Refund by bank transfer of a partial amount or total amount: You can reject the total payment in the Receivables work center in the Payment Clearing view under Actions . Then you see this payment by selecting the rejected payments. This transaction does not refund the amount by bank transfer. To make a refund by bank transfer, go to the Payment Management work center and create a manual outgoing payment for the amount to be refunded. For more information, see the Manual Outgoing Payments section in Outgoing Payments [11].
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Once the outgoing payment is approved, you see the outgoing payment as an open approved payment in the Receivables work center in the Customers view, Customer Accounts subview. You need to clear these payments with manual clearing with the amount that you wanted to refund. You prepare the outgoing payment to the bank in the Payment Management work center in the Outgoing Payments view.
Received Incoming Payments that Cannot Be Allocated

In the Payment Management work center in the Payment Allocation view, you can view all payments that the system could not allocate automatically. They have the status In Preparation. Note that an incoming payment is represented with a plus sign in this view because it is an inflow of cash. 1. Select the relevant payment and choose Edit . The Edit Payment Allocation screen appears. Here you can choose Mark as Return for a payment. Enter the following information for the refund: Allocated amount

Currency Return reason (for example, cash payment, account closed, invalid bank details)
2. Save your entries. The status of the payment allocation changes to Released. The system posts the returned amount depending on what is entered as the return reason. The repayment must be initiated manually. To reverse a payment, on the Edit Payment Allocation screen, choose the Reverse button.
4.2 Customers View

4.2.1 Quick Guide for Customers (in Receivables)
The Customers view in the Receivables work center provides a central point of access for all the customer master data related to your receivables. You can check transaction and account details for all of your customers, and check and release as required the customer balance confirmations that you created in the balance confirmation run. The Customers view features three subviews that allow you to access the information and perform the tasks you need:
Customer Accounts
In this subview, you can view the account balances of your customers and call up individual receivables items on the accounts. You can also create manual payments and start the manual clearing procedure.
Customers
In this subview, you can display, edit, and create customer master data records. You can also check customer details such as their location, main contact person, and contact information.
Balance Confirmation
This subview provides you with a list of proposed balance confirmations that you can check and release so that they are sent to your customers.
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Business Background Customer Account Monitor

The customer account monitor provides you with an overview of your customer due items (invoices, payments, credit memos), for example so you can check which payments are expected in the next few days. Based on this, you can decide which follow-up activities you need to perform (for example, initiating a dunning procedure), and you can plan your liquidity. You can also use the customer account monitor when dealing with customer inquiries or when clearing open items in an account. For more information, see Customer Account Monitor [133].
Customer
A person or company with whom a business relationship exists and who purchases or receives a product. The term customer covers both corporate and private customers. For more information, see Customer.
Open Items Receivables

You can display open item lists for customer accounts. Open items are posted open invoices from goods and services or credit memos that were not yet paid. The lists of open items of all customers help you to recognize your customers' outstanding payments and to collect them in a timely fashion with optimized dunning. You also get an overview for which customer accounts you still need to edit open items. For more information, see Open Items Receivables [132]
Down Payments Received in Financials

Before goods are produced or services provided, it is sometimes necessary to receive a down payment on an invoice amount from the customer. You company then sends a down payment request to the customer. The down payment request is displayed in the system in the receivables balance as a statistical open item that is part of the balance confirmation request, and that can be dunned and paid. The amount from the down payment request is not initially posted to accounting, nor is the tax amount initially entered in the tax entries. This first occurs when your company receives the payment. For more information, see Down Payments Received in Financials [140].
Tasks Create and Edit a Customer

1. In the Customers subview, choose New then Corporate Customer or Private Customer.
2. Enter the name of the customer, the address, communication data, and any other information. Enter a note if required. You can check whether a customer is already entered in the system if you selected this option during scoping in the business configuration. To do this, choose Check for Duplicates . The system also displays any customers that might be
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duplicated when you save the details of a new customer. For more information, see Business Partner Duplicate Check. 3. To enter additional customer information, click View All . 4. To return to the Customers view, click Save and Close .
Create a SEPA Direct Debit Mandate

For more information on this task, see Create a SEPA Direct Debit Mandate [148].
Manual Clearing in the Customer Account Monitor

For more information on this task, see Customer Account Monitor [133].
Reverse Clearing in the Customer Account Monitor

For more information on this task, see Customer Account Monitor [133].
4.2.2 Create a SEPA Direct Debit Mandate Overview

If you want to make payments using the SEPA direct debit procedure, you need to obtain automatic debit authorization in the form of a mandate for each of your customers. You first create and print out the mandate and then send it to your customers for them to sign. The customer then completes the necessary data before returning the signed copy of the mandate. You update the data in the system and send the entries stored in the mandate with each direct debit to the bank. This enables the bank to then directly debit your customer's account.
Prerequisites
You have a unique creditor identifier (UCI), which you requested and obtained from the national bank. You have entered the UCI in your company master data in the Organizational Management work center.
Procedure
1. Create a Preliminary SEPA Mandate a. In the Receivables work center, navigate to the Customers view. In the Customers subview, select the appropriate corporate or private customer and click Edit and then Financial Data . b. Under SEPA Mandates, click New . c. In the Direct Debit Mandate window, enter the required data for your customer, including: Mandate ID If you want the system to generate a sequential number, then leave this field empty. If you want to create a mandate that already exists in the system, enter its number in the field.
Single-Use If you want to use the mandate for one direct debit only, set this indicator. If you want to reuse the mandate, leave the checkbox empty.
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Payer Data Check the data displayed for your customer and use the input help to select their bank. Mandate Type To view the Mandate Type column, go to Personalize My Settings This Screen . Select Sepa Mandates from the Sections list and select the Mandate Type checkbox from the Fields list. Check that the preselected mandate type is correct, displaying either SEPA BusinesstoBusiness or SEPA Core. The system deducts this value according to customer account information, depending on whether you are dealing with a corporate or private customer.
Optional: Alternative Payer If the payables are not settled by the customer but instead by an unknown payer in the system, then you need to set this indicator. Enter the required payer data. In this case, the alternative payer must agree to the direct debit and sign the mandate.
d. Once you have entered all the required data, click Save . Then print the mandate by choosing Actions > Print Mandate so that you can send it to your customer for signing. When you print the form, the mandate status changes from In Preparation to Waiting for Confirmation. This status means that the customer has not yet sent the signed mandate back to you or that you have not yet entered it in the system. 2. Finalize a SEPA Mandate a. After your customer has sent back a signed version of the SEPA direct debit mandate, reselect your customer and choose Edit > Financial Data. b. Under SEPA Mandates, click Edit . On the Direct Debit Mandate screen, enter the data that the customer added to the form and enter the place of signature and the signature date in the Signature Details area. Click Save . The mandate obtains the status Active and can now be used for SEPA direct debit transactions. Upon first use of the mandate with a direct debit procedure, the system enters the mandate data in the payment file and submits it to the bank. Whenever the mandate is used again, only the mandate ID is sent to the bank since the other information is already stored. Only in the case of the mandate being amended is the bank information updated by the payment file. 3. Enter an Existing Mandate in the System This step only applies if a mandate exists that was signed by a customer but that has not been entered in the system. a. In the Receivables work center, navigate to the Customers view. In the Customers subview, select the appropriate corporate or private customer and click Edit and then Financial Data . b. Under SEPA Mandates, click New . c. Enter the data for the SEPA client as described under Create a Preliminary SEPA Mandate but with the following difference: Enter the existing mandate ID in the Mandate ID field as well as the date and signature. Click Save . The mandate status changes to Active and can now be used for direct debits. You can print the mandate as often as you want. 4. Amend an Existing Mandate in the System a. If you need to make changes to a SEPA direct debit mandate with the status Active, reselect your customer. Choose Edit > Financial Data.
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b. You can edit the following fields of which the bank must then be informed: Mandate ID
Creditor ID This entry has to be changed in the Organizational Management work center. Company Name This entry has to be changed in the Organizational Management work center. Payer IBAN or BIC These entries have to be changed on the Bank Data subtab of the Financial Data tab for the respective customer.
Note that changes made in other views or work centers will be automatically updated on the SEPA Mandate screen. You can set the Blocked indicator without generating a change that needs to be reported. In this way, the mandate is blocked from being used with direct debits. You can remove the block at any time. If you change a mandate, the mandate data is sent by payment file to the bank when the next direct debit is made.
Result
Once a mandate has the status Active, you can use it for SEPA direct debit payments. Note, however, that if a mandate is not used for more than 36 months, it can then no longer be applied. You cannot delete any mandates. If the validity of a mandate expires, the system prevents a payment with this mandate. If you no longer want to use a mandate or it is no longer valid, you can set its status manually from Mark as Obsolete to Obsolete. In this way, you can filter the list in the SEPA mandates area by active, that is, valid mandates.
See Also
SEPA Mandate List [185]
4.3 Automatic Payments View

4.3.1 Quick Guide for Automatic Payments (Receivables)
You can access this view from the Receivables work center under Automatic Payments. You use this view to check automatic incoming payments prior to their execution to ensure that they will be received correctly and on time. You can perform the following tasks:
View all internally-initiated incoming payments, such as direct debits or credit card payments, before they are completed. Review proposed payments to be received and release them for payment. Create and track recurring payments.
You can approve automatic payment proposals. To do this, you check the details of a proposal then release it. The system makes the payment automatically once you have saved the changes.
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Business Background Automatic Incoming Payments


For more information, see Automatic Incoming Payments [35].
Tasks Approve an Automatic Payment Proposal

The Automatic Payments view in the Receivables work center enables you to approve proposed incoming payments so that your company receives the correct payment from your customers on time. The system creates a list of proposed payments based on your customer invoices and payment information, which is then displayed in this view. For more information on this task, see Approve an Automatic Payment Proposal [152].
Display Payment Proposals

1. In the Automatic Payments view, select a payment and click View Payment Proposals . 2. In the Payment Proposal Overview: <ID> screen, you can view a list of all the payment proposals created by the payment run execution that includes the selected payment.
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4.3.2 Approve an Automatic Payment Proposal Overview

The Automatic Payments view in the Receivables work center enables you to approve proposed incoming payments so that your company receives the correct payment from your customers on time. The system creates a list of proposed payments based on your customer invoices and payment information, which is then displayed in this view.
Procedure
1. In the Automatic Payments view, select a payment proposal with the status In Preparation and click Edit . The Payment: <ID> editor appears. 2. If you want to check the payment information and details on the payer and memo line, view the General tab. 3. Choose the Open Items tab and check the open items. To remove an open item from the proposed payment, deselect it in the Matched column. For detailed information on how to use the Open Items table, see Using the Open Items Table [93]. 4. If the proposed payment is appropriate, click Execute Payment . The payment is then sent for further approval, if necessary. If you want to reject a payment proposal, choose Actions then Void Proposal. Then click Close to close the editor and return to the worklist.
Result
If you click Execute Payment , the payment status changes to Completed.
4.4 Payment Clearing View

4.4.1 Quick Guide for Payment Clearing (Receivables)
The Payment Clearing view in the Receivables work center enables you to clarify a receivable payment, such as an incoming payment for a customer invoice, either by clearing or by reposting it. The system usually clarifies such payments by clearing automatically. If the system does not find any open items that fit to the payment, or the open items that it does find do not match the open items that are referenced (incorrect document date or invoice amount, for example), it creates a Payment Clearing task. To assist you in matching an incoming payment with the appropriate open invoice, the system creates clearing proposals that suggest the best match if it is unable to make the clearing itself, based on factors such as the payment amount, due payment date, and payment references. You can simply accept these proposals or you can edit them for a better match. There are several editing methods you can use, such as changing the discounts that should be applied to each invoice, deducting the difference between the invoice and payment amounts, or editing which invoices should be paid by the incoming payment. The system provides you with a list of different discounts and deductions that you can apply, and it records this information when you apply them. Once the difference between the payment amount and the invoice amount has been eliminated, the incoming payment can be cleared. The Payment Clearing task is complete when the payment is clarified. A payment is considered to be clarified under the following circumstances:
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It is applied to open items and cleared. It is reposted to a different customer account or supplier account. The remaining balance is accepted on account. A combination of the above.
If a partial payment is to clear an invoice completely, you can apply additional discount manually to the item in question, or use the action Apply Discount or Credit, which distributes the discount according to the clearing strategy configured. Note that it is not possible to apply such a discount to an overpayment. In the case of an overpayment, you have to accept the overpayment on account and clear it later, for example against a customer charge item. Your manual payment clearing tasks can also be accessed from the Work view of the Receivables work center.
Business Background Cash Discounts for Receivables in Financials

A customer can deduct a cash discount when paying an invoice. When the corresponding open item is cleared, the cash discount amount is entered either automatically or manually. The system automatically posts the cash discount granted. For more information, see Cash Discounts for Receivables in Financials [142].

Tasks Clear an Incoming Payment Manually

In the Payment Clearing view of the Receivables work center, you can clear incoming payments manually. You can also call up tasks for manual payment clearing in the Work view of the Receivables work center. For more information on this task, see Clear an Incoming Payment Manually [154].
View Clearing
1. If you want to view the details for payment clearing, select the clearing that you want to display in the Payment Clearing view and click Show Clearing . 2. In the Clearing Overview: <ID> editor, you can view the parameters set for clearing, such as the remaining balance that needs to be cleared for the entire clearing process to be completed, amounts assigned to other customers and suppliers, accounting data, open items, and the payment amount. You can also clear the incoming payment manually if
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required. If you want to clear the incoming payment manually, click View All and perform the task Clear An Incoming Payment Manually [154].
4.4.2 Clear an Incoming Payment Manually Overview

In the Payment Clearing view of the Receivables work center, you can clear incoming payments manually. You can also call up tasks for manual payment clearing in the Work view of the Receivables work center.
Procedure
1. In the Payment Clearing view, select a payment clearing item with the status Paid on Account and click Edit . The General tab in the editor displays the clearing balance that needs to be zeroed before clearing can be completed. The amounts under Clearing Overview and Payment Overview are influenced only by those open items that are matched in the Open Items table. 2. In the Open Items table, you can display the items that are currently open and that can be added to the clearing proposal to clear the payment amount. To include an item in the proposal, select the item that you want to use in the Matched column. Similarly, items can be removed by deselecting them. For detailed information on how to use the Open Items table, see Using the Open Items Table [93]. 3. Once you have eliminated the clearing difference, click Clear to clear the selected items. If you want to save a 'draft' version of your clearing proposal first, click Save . Be aware that any reposting-relevant changes are posted to accounting though. Then click Close to return to the clearing worklist. After you have checked a payment clearing task, you might find that the payment cannot be allocated to an open item. In this case, select the clearing task concerned and choose Actions then Send to Payment Allocation. In the payment clearing task, it is not possible in the case of an overpayment to clear the overpaid amount with deductions. If you have an overpayment, click Clear . The system asks you whether to accept the balance on account. Confirm this. You can clear the balance later in the account monitor.
Result
Your incoming payment is cleared either partially or entirely and updated in the list in the Payment Clearing view. All the open items that are allocated to the payment are cleared, and all the amounts that were accepted on account or allocated to other customers or suppliers are included on the relevant supplier or customer account.
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4.5 Dunning View

4.5.1 Quick Guide for Dunning
In the Dunning view of the Receivables work center, you can use automatically-created dunning proposals to issue dunning notices to your customers who have overdue payment items, and in this way, request payment of the outstanding amounts owed to your company. The system assists you with this task by creating with a dunning run a list of dunning proposals that you can edit, block, or use to send dunning notices to your business partners, as appropriate. To create dunning proposals, use the dunning run provided under Runs . Receivables Periodic Tasks Dunning
Business Background Automatic Dunning

From time to time your company may have outstanding receivables against customers. To remind customers about amounts due, you can use dunning notices or payment reminders. The usual case is that a customer has not paid an invoice. For more information, see Automatic Dunning [138].
Tasks Edit and Execute Dunning

For more information on this task, see Edit and Execute Dunning [155].
Preview a Dunning Letter

1. If you want to preview a dunning letter, go to the Dunning view, select a dunning proposal for which you want to display the dunning letter, and click Edit . The Dunning Proposal: <ID> editor appears. 2. Choose Preview then Dunning Letter, and on the Preview screen, select the dunning letter you want to view and click Open . Alternatively, you can preview a dunning letter from the Dunning view by selecting a dunning proposal for which you want to display the dunning letter and then choosing Preview then Dunning Letter.
4.5.2 Edit and Execute Dunning Overview

In the Dunning view of the Receivables work center, you can use automatically-created dunning proposals to issue dunning notices to your customers who have overdue payment items, and in this way, request payment of the
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outstanding amounts owed to your company. The system assists you with this task by creating with a dunning run a list of dunning proposals that you can edit, block, or use to send dunning notices to your business partners, as appropriate.
Procedure
1. In the Dunning view, select a dunning proposal with the status In Preparation and click Edit . The Dunning Proposal: <ID> editor appears. 2. If you want to check the dunning information and the overview of dunning items, select the General tab. 3. Choose the Dunning Items tab, and check the individual dunning items. These are overdue payment items that are included in the dunning notice when it is sent to your customer, unless you change their status. 1. If you prefer not to include an individual dunning item in a dunning notice, select the item from the list, and choose Actions then Postpone or Actions then Block . 2. If you choose Block, you will need to enter a dunning block reason. Click the Block Reason arrow, and choose the relevant reason. 4. Click Execute Dunning . The proposal status is updated in the worklist to Issued. If you do not want to execute dunning immediately but first want to save a draft, click Save and then Close to close the editor. You then return to the worklist. If you do not want to issue the dunning notice, click Close to close the editor and to return to the worklist. Choose Actions then Postpone. The entire dunning proposal is postponed, irrespective of the status of the individual dunning items contained in the proposal.
Result
If you click Execute Dunning and approve the dunning proposal, a dunning notice is automatically sent to your customer using your chosen dunning medium. If you postpone a dunning proposal, the task is deleted from the Work view, but remains in the dunning worklist with the status Rejected.
4.6 Periodic Tasks

4.6.1 Quick Guide for Dunning Runs
In the Dunning Runs subview of the Periodic Tasks view of the Receivables work center, you can perform automatic runs, which generate dunning proposals. The system automatically generates a dunning proposal list containing invoices, for example, for which payment is overdue or due shortly. The system displays recurring dunning runs as well as dunning runs that you have scheduled for a future date. You can edit existing dunning runs and reschedule them. You can display existing dunning runs and check the application logs of runs that have already been executed.
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Automatic Dunning
From time to time your company may have outstanding receivables against customers. To remind customers about amounts due, you can use dunning notices or payment reminders. The usual case is that a customer has not paid an invoice. For more information, see Automatic Dunning [138].
Tasks Create a Dunning Run

For more information on this task, see Create a Dunning Run [159].
Activate a Dunning Run

1. In the Periodic Tasks view in the Dunning Runs subview, select a dunning run with the status In Preparation or In Revision and click Edit . 2. In the Dunning Run: <ID> editor, you can check the available data and make any necessary changes. If you make any data changes, make sure you then Save . 3. Choose Activate . Alternatively, you can activate a dunning run by going to the Periodic Tasks view and Dunning Runs subview. Here you select a dunning run with the status In Preparation or In Revision and choose Actions then Set to Active. . You can also perform this step when you create a dunning run. It is then not necessary to perform a separate activation step. Note that you cannot change an existing run if it has the status Active.
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Schedule a Dunning Run

1. In the Periodic Tasks view in the Dunning Runs subview, select a dunning run with the status Active and click Schedule . The Schedule Job editor appears. 2. If you want to start a dunning run immediately and do not intend to repeat the run, select Start Immediately. Alternatively, you can specify a start date and time or arrange for it to run after a specific job. If you want to schedule the dunning run periodically, specify in addition to the execution date when the dunning run should be repeated, for example, daily or weekly. 3. Then choose Save and Close . You can also perform this step when you create a dunning run, once you have saved and activated it. It is then not necessary to perform a separate scheduling step. You can reschedule an active run at any time or change its scheduling parameters.
Edit a Dunning Run

1. In the Periodic Tasks view in the Dunning Runs subview, select a dunning run with the status In Preparation and click Edit . The Dunning Run: <ID> editor appears. 2. Make your changes. 3. Then click Save .
Display Scheduled Runs

1. In the Periodic Tasks view in the Dunning Runs subview, select the dunning run you want to view and click View Jobs . The Job Monitor window appears. 2. You can check which runs are scheduled and change or cancel runs if required. If you want to change the execution date of a job, select the appropriate job and click Reschedule . If you want to cancel a job that has already been scheduled, click Cancel Job . You can display the technical details for jobs that have already been executed as follows: 1. In the Job Monitor window, use the Show field to view the executed jobs. 2. Click View Job Log .
Display Application Log

1. If you want to view the details of runs that have already been executed, first go to the Periodic Tasks view and the Dunning Runs subview. Here you select the relevant dunning run and you can see the details in the lower table. 2. To then display the application log, click on the relevant ID in the Application Log ID column of the lower table.
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4.6.2 Create a Dunning Run Overview

In the Dunning Runs subview of the Periodic Tasks view of the Receivables work center, you can create dunning proposals automatically for all or selected customers with overdue open items. You can also generate reminders for open items not yet due.
Procedure
1. In the Periodic Tasks view in the Dunning Runs subview, choose New then Dunning Run. 2. In the New Dunning Run editor, specify the criteria that you want to use to perform the dunning run. Make entries in the following fields:

Company Customer from / to ID You can define a value range, which enables you to select multiple customers for one dunning run. If you do not make a selection here, the system includes all the customers for the selected company in the dunning run. Dunning Strategy Select a dunning strategy. If you do not make a selection from the list, the system uses the dunning strategy defined as standard in the business configuration. The dunning run ID is automatically assigned by the system.
3. Choose Save .
Result
You have created a dunning run that can now be activated and performed immediately or scheduled for a later date. If you have only saved a dunning run and not yet activated it, you can still make changes to it.
4.6.3 Quick Guide for Payment Runs (Receivables)

In the Payment Runs subview of the Periodic Tasks view of the Receivables work center, you can create automatic runs, which generate payment proposals for internally initiated payments. The system displays recurring payment runs as well as manually scheduled payment runs. You can edit existing payment runs and reschedule them. You can display existing payment runs and check the application logs of runs that have already been executed. You do not use this view to generate bank transfers, direct debits, checks, or bills of exchange. Instead you use the Payment Media Run in the Payment Management area.
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Automatic Incoming Payments


For more information, see Automatic Incoming Payments [35].
Tasks Create and Edit Payment Proposals for Receivables

For more information on this task, see Create and Edit Payment Proposals for Receivables [161].
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4.6.4 Create and Edit Payment Proposals for Receivables Overview

A payment proposal list contains all open items (for example, invoices or credit memos) that the system proposes for payment within a single execution of a payment run. You can use the payment proposal lists to check internally initiated payments before they are executed. A payment proposal list is determined on the basis of the payment strategy that you have defined in configuration and displays the due payments taking payment conditions into account. Depending on the setting, it allows an optimal usage of granted cash discounts. To display a payment proposal list created by the system for internally initiated incoming payments, in the Receivables work center, choose Automatic Payments. Alternatively, you can access payment proposals in the Work view filtered according to Payment Run Tasks, or in the Payment Runs subview of the Periodic Tasks view. Due payment runs for direct debits (receivables clearing) in foreign currencies are not supported by the system. The system shows due customer payments to be collected from the customer's bank account by direct debit or credit card. The system creates the proposal list on the basis of the outgoing invoices and payment information that you have created for the customers. Once you have checked the payment details and terms of the proposed payments, you can release them. Depending on the settings in configuration, you may need approval from a manager. Once you have executed the payments (by choosing Execute Payment in the Automatic Payments view), the system posts the payments and clears the open items to be paid. You perform any subsequent processing, for example, creating payment files or payment media in the Payment Management work center.
Prerequisites
You have made the following predefined settings in configuration and for master data: Configuration settings are normally performed by a key user. If you do not have the required authorization, contact your key user. Scoping Under Questions Cash Flow Management , you have made the basic settings for your payment processes.
Fine-Tuning You have selected the following settings in Business Configuration under Management :
Activity List
Fine-Tune
Cash Flow
Payment Strategy (mandatory) You can create one or multiple payment strategies, which the system accesses when creating the payment proposal lists. These settings directly influence when the open items are included in a payment proposal list and whether deductions should be made.
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Approval Process In the payment processing settings, you specify a threshold value for each payment method. When this threshold value is reached, an approval of the incoming payment is required. For customer credits, for example payment of credit memos, the approval threshold for outgoing payments is used instead. The approval request is sent to the next manager in the organization chart that you have defined in configuration for Corporate Organizational Management. Prioritization of Bank Accounts You can specify all bank information, the payment method for each bank account, and the threshold values for the bank accounts. The system accesses the bank accounts during liquidity assignment for the payment of invoices depending on the priority.
Procedure
1. Creating a Payment Proposal List To create a new payment run, proceed as follows: a. Go to the Receivables work center and choose the Payment Runs subview of the Periodic Tasks view. Choose New then Payment Run. The New Payment Run screen appears. You can use the following selection criteria for your payment run: Posting Date You can specify a posting date. The default posting date is the execution date of the run. Leave this field empty if you want to schedule the run periodically.
Bank Processing Date You can specify the requested payment date (for bank transfers and direct debits only). Depending on working days, the bank may make the payment later. Leave this field empty if you want to schedule the run periodically. Include On Account Payments Here you can specify whether you want the run to include incoming on account payments. These are payments that have been posted to an account but not yet cleared. Company Customer from/to ID You can define a value range enabling you to select multiple customers for one payment run. If you do not select a customer, the system selects all the customers entered in the system for the payment run. Currency You can specify a currency. Only those invoices that match the selected currency are cleared. Next Payment Run Date Here you enter the date up to which all open items should be considered in the payment proposal list. You cannot edit this field later. This date should only be specified if the payment run is performed immediately and performed once only. If the payment run is scheduled periodically, no date should be entered here. The payment run then takes into account all items until the payment run is next performed. Items with a payment block are not selected by the run. This applies to on account payments as well.
b. Save your entries. 2. Scheduling a Payment Run a. On the Payment Run: <ID> screen, click Schedule .
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The Schedule Job screen appears. If you want to start the payment run immediately and run it once only, choose Start Immediately. Alternatively, you can specify a start date and time or arrange for it to run after a specific job. If you want to schedule the payment run periodically, specify when the payment run should be repeated, for example, daily or weekly. b. Save your entries. c. Close the Schedule Job screen. The payment run number is displayed in the title of the screen. You can find the payment run with this payment run number in the Payment Runs subview. You can check the status of the payment run in the Payment Runs subview, in the Status column. You can view the technical details on the execution of a run in the log in the Payment Runs subview of the Periodic Tasks view. To do this, select the relevant payment run under Payment Runs then click on the relevant ID in the Application Log ID column of the lower table. For more information, see Messages in the Payment Run Application Log [99]. 3. Displaying a Payment Proposal If the run was successful, you can display the payment proposals created by the system for internally initiated incoming payments (for example direct debit from customer's account). You do this in the Receivables work center in the Automatic Payments view. 4. Editing and Releasing a Payment Proposal To edit a payment proposal, proceed as follows: a. In the Receivables work center, open the Automatic Payments view. Alternatively, you can open the Work view and filter according to Payment Run Tasks. b. Select the appropriate payment proposal. c. Choose Edit to display the details for the payment and to make changes. You can change the payment method and related data (such as the bank account), change the payment amount, select other customer/supplier bank details, enter or change a cash discount amount, or delete open items (which will exclude them from the payment). You can also reject a payment proposal. This does not affect the open items since there has been no posting in the system. d. Once you have finished editing a payment proposal, choose Execute Payment to forward the payment to the Payment Management work center or to the approver of the incoming payment. The approval is necessary if the threshold value defined in configuration for the approval of an incoming payment is reached. If no approval is necessary for the incoming payment, posting takes place in the system with the execution of the payment and the open items are cleared. If an approval is necessary, posting takes place after approval. 5. Approving a Payment Proposal Once you have edited and released a payment proposal that must be approved, it is automatically forwarded to the approver in the Managing My Area work center in the Approvals view. The approver can approve the payment or send it back for revision.
See Also
Configuration: Payment Strategies Contracts in Receivables
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4.6.5 Quick Guide for Balance Confirmation Runs (Receivables)

You use the balance confirmation run in the receivables area to compile data for your customer balance confirmations and to create balance confirmation letters. These letters inform your customers about their account balances and request that the balance information is confirmed. In this way, you can reconcile your system data records with the data records in the customer system. Alternatively, you can request that your customers send you a balance confirmation return letter. You access the balance confirmation run functionality for receivables in the Balance Confirmation Runs subview of the Periodic Tasks view of the Receivables work center.

Balance Confirmation for Receivables

You can use balance confirmations to check that the receivables from your business partners are correct. If discrepancies are found, they need to be clarified with the business partner or reserves for bad debt need to be made. During balance confirmation, you inform your business partner of the individual amounts that need to be confirmed and request the confirmation. For more information, see Balance Confirmation for Receivables
Open Items Receivables

You can display open item lists for customer accounts. Open items are posted open invoices from goods and services or credit memos that were not yet paid. The lists of open items of all customers help you to recognize your customers' outstanding payments and to collect them in a timely fashion with optimized dunning. You also get an overview for which customer accounts you still need to edit open items. For more information, see Open Items Receivables [132]
Reserves for Bad Debt

For year-end closing, you have to check the recoverability of your receivables and valuate them accordingly. By valuating the receivables individually, the individual credit risk of a customer can be taken into account. For more information, see Reserves for Bad Debt.
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Tasks Create a Balance Confirmation Run

For more information on this task, see Create a Balance Confirmation Run [103]Create a Balance Confirmation Run [165].
4.6.6 Create a Balance Confirmation Run Overview

You can send balance confirmations to compare your data records with those of your suppliers/customers and consequently identify any inconsistencies. You use balance confirmation runs to schedule balance confirmations on a frequent and recurring basis. Alternatively, you can perform a manual run as a one-off request. You can create a balance confirmation run in the Balance Confirmation Runs subview of the Periodic Tasks view of either the Payables or the Receivables work center.
Procedure
1. To create a new balance confirmation run, click New 2. Select a Type 1. Enter a description for the balance confirmation run. 2. Choose an appropriate balance confirmation type: Without Return Letter This selection enables you to check the accuracy of your accounts payable and receivable using balance confirmations. You can detect and correct any discrepancies which might exist between your records and those of your customers or suppliers and make any necessary value adjustments. However, the customer or supplier does not send a return letter documenting the differences in this case. The balance confirmation can only be confirmed or rejected. As long as the customer or supplier makes no objections prior to the cut-off date, your balance is accepted.
then Balance Confirmation Run.
With Return Letter This selection enables you to contact your customers or suppliers to discuss the details relating to your open items. Your company issues a letter listing all your open item details. This letter requests that the customer or supplier confirms whether the data entries agree with each other, or specifies how the accounts differ using the return letter provided. In this way, you can determine whether your customer and supplier accounts are up-to-date as well as identify any discrepancies using the information contained in the return letter. Request This selection enables you to contact your customers or suppliers to check the balance of your accounts on the side of the customer or supplier. You can request the account balance alone or also detailed information relating to the balance.
3. Choose Release Immediately if you want to release the confirmation straight away. The balance confirmation letters are printed automatically once the run has been completed. Alternatively, you can manually check and release each balance confirmation. 4. Choose whether you want automated or manual selection of customers/suppliers.
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3. Enter Restrictions You can enter the name of the company or the customer/supplier. You can also choose various selection parameters that include or exclude particular customers or suppliers from the balance confirmation run, depending on the restriction type that you selected in the previous step. 4. Complete and Confirm Selection Click Finish to save the balance confirmation run. When the run has been saved successfully, the Run ID field displays the ID of the new balance confirmation run. Choose Schedule Balance Confirmation Run. The Schedule Job editor appears. Here you can schedule and save the run.
Result
The balance confirmation run has now been created and scheduled successfully. You can display the results of the run in the Balance Confirmation subview of either the Suppliers view in the Payables work center or the Customers view in the Receivables work center. From this location, you can check and release the balance confirmation. You can use search criteria, such as the Status or Run ID to search for the balance confirmation that you want to view.
4.6.7 Quick Guide for Foreign Currency Remeasurement (Receivables)

You use foreign currency remeasurement to convert open receivables from foreign currencies into the company currency on a specific key date. This closing activity is relevant for companies with customers for which the transactions are portrayed in a currency differing from the company currency. At the time when the amounts of these open receivables originate, you convert them into the company currency using the exchange rate valid at that time. On the day when the balance sheet is created, a different exchange rate applies, causing you to have to revaluate the open items. You can repeat the remeasurement as often as required until the receivables are cleared or written off.


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Important tasks Check Prerequisites

The current exchange rates need to have been entered in the system. For more information, see Editing Exchange Rates. You need to have reclassified the receivables. For more information, see Quick Guide for Reclassification (Receivables) [169]. Using account determination, you need to have defined and set up in configuration the accounts that you want to remeasure. For more information, see Business Configuration of Account Determination for a Business Transaction. You need to have defined how the system is to valuate and post exchange rate differences. For this, you need to have assigned the appropriate set of books to the foreign currency remeasurement method. For more information, see Foreign Currency Remeasurement Method.
Perform Foreign Currency Remeasurement for Receivables

1. To create a new foreign currency remeasurement run, click New Currency Remeasurement Run. and then Foreign
Test Run To perform the foreign currency remeasurement run as a test run, set the Test Run indicator. The system previews the results of the test run but does not make any postings. The postings are only simulated.
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You can only delete foreign currency remeasurement runs that you either scheduled or performed as a test run. To delete a test run, select the run that you want to delete and click Delete .
Set of Books You can perform the remeasurement for a single set of books or for all sets of books. If you use multiple sets of books with different fiscal year variants, you should ideally perform the remeasurement separately for each set of books. The system determines the key date on the basis of the fiscal year variant of the set of books. Business partner ID You can limit foreign currency remeasurement to receivables for individual customers. Currency You can limit foreign currency remeasurement to receivables in specific currencies. Closing Step You select the closing step that you want the system to use when making the postings on the key date to the corresponding accounting period. This accounting period must be open for the closing step that you have selected. For more information, see Closing Steps. Period / Year You select the period and year for which you want to perform foreign currency remeasurement.
3. Scheduling You can either perform foreign currency remeasurement immediately or schedule it to occur later: To perform foreign currency remeasurement immediately, click Start Immediately . You have to wait until the foreground job finishes before you can continue with your work. This may take several minutes depending upon the data volume, which can cause the screen to time out. In such a case, you can go to the main screen for the run and refresh the data. When the run status changes to Finished, click View to view the logs. Alternatively, you can click Log Result in the Details section of a finished run.
To schedule foreign currency remeasurement for a subsequent point in time, click Schedule and specify the time when the system will perform remeasurement. If you leave the Date and Time fields empty, the run starts immediately. You can continue with your work while the system executes the run as a background job. You can view scheduled foreign currency remeasurement runs and their respective times in the subview Foreign Currency Remeasurement under Jobs .

1. Display Log If you have performed foreign currency remeasurement immediately, the system issues a status message. To display a list of the logs, click Display Log in the status message. When you have scheduled foreign currency remeasurement, you can display the list of logs in the Foreign Currency Remeasurement subview after foreign currency remeasurement has been performed. To do this, choose the relevant foreign currency remeasurement.
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2. Check the Log The log contains the following information:
General
Data Selection
Messages
Postings
Shows all the account movements and journal entries that the system posted for the key date valuation.
Shows for each remeasured account all the documents with their source document ID, historical value, and key date value, as well as gains and losses. You can also view the term over which the valuation was performed.
Shows for each remeasured account the documents that were subject to errors during processing, for example, no account determination. To verify whether a run has been completed successfully, you can run the following checks: Log You find a log for a run in the corresponding subview. Each run has a status (Information, Error). To display the details of a log, select the relevant run and click Display . If errors occur during a run, you need to resolve them. You can find information on the errors on the Messages tab page. Once you have resolved the errors, start the run again. The system repeats the postings that could not be made in the first run.
4.6.8 Quick Guide for Reclassification (In Receivables)

You use the reclassification of receivables to display your receivables correctly: The reclassification of payables and receivables is an important closing step. Based on the closing balance for each single debtor and creditor, and based on the remaining term, the system characterizes the amounts accordingly under accounts payable for debit amounts, and under accounts receivable for credit amounts. In a second step the system reclassifies the receivable and payable items by remaining terms (0 12 months, 12 60 months, > 60 months). A reclassification can be reversed. Overdue items are not restructured. They have a remaining term of less than one year.
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The intervals for the reclassification are derived automatically on the basis of the accounting principle specified in the business configuration. Before you perform the reclassification step, you need to have performed the reserves for bad debt as well as the allowance for doubtful accounts. The intervals for the reclassification are derived automatically on the basis of the accounting principle specified in the business configuration.
Business Background Reclassification

If you start the procedure for reclassification, the system automatically posts the corresponding receivables or payables, depending on their remaining terms. To do so, the system automatically creates the relevant journal entries. For more information, see Reclassification [84].

Reserves for Bad Debt

For year-end closing, you have to check the recoverability of your receivables and valuate them accordingly. For more information, see Reserves for Bad Debt.
Allowance for Doubtful Accounts

For year-end closing, you valuate your receivables with regard their general credit risk. On the basis of your business experience, you determine a percentage for losses on receivables. You apply this percentage to your receivables and post the general credit risk to a separate account. For more information, see Allowance for Doubtful Accounts.
Tasks Perform Reclassification for Receivables

1. To perform a new reclassification, click New and then Reclassification of Receivables.
2. You have the following options for performing reclassifications: Reclassification with Reference To reuse the data from a previous reclassification, select the reclassification that you want to use and click Copy . The system copies the data directly to the input screen for the new reclassification. You can then adjust the data copied from the previouslyexecuted reclassification.
Test Run To perform the reclassification as a test run, select Test Run. The system previews the results of the test run but does not make any postings. The postings are only simulated.
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You can only delete reclassifications that you either scheduled or performed as a test run. To delete a test run, select the run that you want to delete and click Delete .
Set of Books You can perform reclassification for a single set of books or for all sets of books. If you use multiple sets of books with different fiscal year variants, you should ideally perform the balance carryforward separately for each set of books. The system determines the key date on the basis of the fiscal year variant of the set of books. Closing Step You select the closing step that you want the system to use when making the postings on the key date to the corresponding accounting period. This accounting period must be open for the closing step that you have selected. For more information, see Closing Steps.
3. Scheduling You can perform reclassification immediately or schedule it to occur later: To perform reclassification immediately, click Start Immediately . You have to wait until the foreground job finishes before you can continue with your work. This may take several minutes depending upon the data volume, which can cause the screen to time out. In such a case, you can go to the main screen for the run and refresh the data. When the run status changes to Finished, click View to view the logs. Alternatively, you can click Log Result in the Details section of a finished run.
To schedule reclassification for a subsequent point in time, choos Schedule and indicate when you want the system to perform reclassification. If you leave the Date and Time fields empty, the run will start immediately. You can continue with your work while the system executes the run as a background job. You can view scheduled reclassifications and their respective times in View Jobs .
Review the results of the run in the Receivables work center in the Work view under Reclassification Run Receivables Tasks. Edit the tasks accordingly, click Actions and click Complete. The Reclassification run now appears in the list of finished reclassification runs.

1. Display Log If you have performed reclassification immediately. the system issues a status message. To display details, click Show Log in the status message. When you have scheduled reclassification, you can display the list of logs after reclassification has been performed. To do this, choose the relevant reclassification. 2. Check the Log The log contains the following information:
General
Shows the result of the reclassification, the execution date, any messages that were issued, and the extent of profit or loss from the valuation.
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Data Selection
Shows the information that you entered at the start of the reclassification.
Messages
Postings
Shows all the account movements and journal entries that the system posted for the key date valuation and the valuation reversal. You can display the postings for each reconciliation account or sorted by document.
Shows for each reconciliation account all the journal entries with data on the supplier, journal entry ID, remaining term groups, and the amount in company currency.
Not Processed
Shows the documents that were subject to errors during processing, for example because of missing account determination for each reconciliation account. To verify whether a run has been completed successfully, you can run the following checks: Log You find a log for a run in the corresponding subview. Each run has a status (Information, Error). To display the details of a log, select the relevant run and click Display . If errors occur during a run, you need to resolve them. You can find information on the errors on the Messages tab page. Once you have resolved the errors, start the run again. The system repeats the postings that could not be made in the first run.
Perform Reversal of Reclassification for Receivables

If you perform the reversal of a run in an accounting period after the period is closed, the system allows you to execute the run. At the end of the run, instead of postings, you will see an error message saying that reversal is not possible because the closing step for the period has already been performed. 1. Select the run to be reversed Select the reclassification you want to reverse. The run must be an Update run and must have Finished as the execution status. 2. Schedule reversal run click Reverse . enter a Run Description and schedule it. 3. Review the results of the run in Reclassification Run Receivables Tasks. Edit the tasks accordingly, click Actions and click Complete. 4. The reversed run now appears in the list of finished reclassification runs. 5. Result As a result of reclassification the system posts negative postings or equivalent debit or credit postings. This is determined by the business configuration.
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If the reversal run for the selected reclassification run is scheduled to a later time, it is listed in the Receivables work center under the Work view with a blank status. The status switches to Finished when the run has been performed. All the reversed runs have the Reversed indicator set. References to the reclassified postings are removed from the line items of the journal entry of the reversed reclassification.
4.6.9 Quick Guide for Central Bank Reporting
This document contains text that is relevant for Austria, France, and Germany. To ensure that the system displays the correct text, select Personalize My Settings . Select Onscreen Help and, under Country, choose the relevant country. Save your settings and logout to ensure these changes are made. The Central Bank Reporting subview enables you to report your foreign trade transactions to the authorities. This information is used in the calculation of the balance of payments for your country. Different regulations apply to central bank reporting depending on the country. You can use the Central Bank Reporting subview to manually maintain and prepare this data for central bank reporting that has been collected from supplier and customer invoicing. In addition to the automated data collection process, it is possible to manually enter data to the central bank reporting work list. If there are no entries for your company in the Central Bank Reporting list, your company might not be activated for central bank reporting. You should check the Central Bank Reporting Exclusion activity in business configuration if central bank reporting is deactivated for your company.
Business Background Central Bank Reporting Exclusion

You can exclude any of your company entities from the system's processing for central bank reporting. When a company is excluded, no customer or supplier invoicing information is transferred to the Central Bank Reporting worklist and no central bank reporting tasks are created. For more information, see Central Bank Reporting Exclusion
Tasks Perform Central Bank Reporting

In the Central Bank Reporting subview of Periodic Tasks, you can perform central bank reporting, which involves the collection and management of foreign trade transactions. These transactions are reported to the authorities to create the balance of payments for the respective country. For more information, see Perform Central Bank Reporting [112].
Edit Central Bank Code Determination Rules

In the Central Bank Code Determination fine tune activity in Business Configuration, you can assign central bank codes according to the official lists provided by the authorities. The rules can
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also be created or edited in the Central Bank Reporting subview. These rules are used to determine the default central bank code used for an invoice that has the relevant attributes.
Assigning a Business Partner to an International Organization Austria

When a business partner belongs to or is considered to be an international development organization, it is subject to central bank reporting. Trading with this customer or supplier is subsequently reported to as part of your companys regular central bank reporting. For more information, see Determination of International Organizations for Central Bank Reporting Austria [117] . This task is relevant for Austria only.
4.7 Reports
4.7.1 Aging List for Receivables Overview
This report displays for each customer your overdue receivables according to a specific key date and aging period.

Key Date The key date always corresponds to the transaction date of the open items and not to the posting date. The system considers only items with a transaction date before the key date. Period 1 through Period 4 You can specify four aging periods to group your overdue receivables. These periods are calculated from the specified key date. In the default display, the period structure is as follows: 30 days (period 1), 60 days (period 2), 90 days (period 3), 120 days (period 4). This means, for example, that period 2 displays the overdue receivables with a due date between 31 and 60 days in the past, regardless of whether they are cleared on the current date. These values can be changed.

In addition to the overdue receivables, the report also displays for each period the receivables that are not yet due and the total amount of receivables (the total overdue items and items not yet due).
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Note the following for the individual document types:

Customer invoices are displayed as positive amounts. Customer credit memos are displayed as negative amounts. Payments do not have a specific due date. The net due date displayed therefore corresponds to the transaction date.

You can restrict the data that is displayed. To do this, choose Filter. To further analyze data in this report, you can drag characteristics to rows and columns. You can call up the corresponding detailed information for the open items displayed. To do this, select the appropriate value and open the corresponding menu. To be able to navigate to the source document, add the following characteristics to the report:

See Also

4.7.2 Forecast List for Receivables Overview

This report displays for each customer your open receivables for which the due date is after the specified key date and lies in the future. The report also lists open items that your customers need to pay you. Canceled items are not included.
Views
Forecast List for Receivables - (Standard) Displays the following for each customer: the amount already overdue on the key date, future aging periods, total future due amount, open total amount. The due date calculation refers to the net due date (payment target). Normal Cash Discount
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Displays the following for each customer: the amount already overdue on the key date, future aging periods, total future due amount, open total amount. The due date calculation refers to the due date of the normal cash discount, as shown in the example below: Cash discount terms 2.
Maximum Cash Discount Displays the following for each customer: the amount already overdue on the key date, future aging periods, total future due amount, open total amount. The due date calculation refers to the due date of the maximum cash discount, as shown in the example below: Cash discount terms 1.
You receive an invoice dated 01.07.09 with the following payment terms:

1) Payment within eight days: 3 % cash discount 2) Payment within 14 days: 2% cash discount 3) Payment within 30 days: Net
This means that there are three possible due dates for this invoice:

Cash discount term 1) (maximum cash discount): Can be paid up to 09.07.09 Cash discount term 2) (normal cash discount): Can be paid up to 15.07.09 Net (payment target: term 3): Can be paid up to 31.07.09
The system displays different net amount and aging periods for the invoice, depending on the view you select. Depending on the view used, the invoices are grouped by net due date, due date with normal cash discount, or due date with maximum cash discount.

Key Date The key date always corresponds to the transaction date of the open items and not to the posting date. The system considers only items with a transaction date before the key date. Period 1 through Period 4 You can specify four aging periods to group your receivables due at a future date. These periods are calculated from the specified key date. In the default display, the period structure is as follows: 30 days (period 1), 60 days (period 2), 90 days (period 3), 120 days (period 4). This means, for example, that period 2 displays the receivables due from day 31 through 60 after the specified key date. These values can be changed.

In addition to the items due for each period in the future, the report displays the receivables overdue on the key date and the total amount of all open items (total overdue and not yet due items). Note the following for the individual document types:

Customer invoices are displayed as positive amounts. Customer credit memos are displayed as negative amounts.
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Payments do not have a specific due date. The due date displayed therefore corresponds to the transaction date.

You can restrict the data that is displayed. To do this, choose Filter. To further analyze data in this report, you can drag characteristics to rows and columns. From the open items, you can drill down to the relevant details. To do this, select the appropriate value and open the corresponding menu. To be able to navigate to the source document, add the following characteristics to the report:

See Also

4.7.3 Dunning History - Customers Overview

This report shows for each customer a detailed dunning history of all overdue payment items. Canceled items are not included.

Before running the report, you specify the data that you want to display by selecting variables. You must specify a value for all mandatory variables. In the system, mandatory variables are indicated by an asterisk (*). For more information about the standard variables, see Overview of Reports in Financial Management.

For each customer, the report shows the number of overdue payment items, the dunning date, dunning status, highest dunning level, dunning amount, and the accrued dunning fees. The data in this report is displayed in table format. You have the following options for analyzing the report:
You can restrict the data that is displayed. To do this, choose Filter.
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To further analyze data in this report, you can drag characteristics to rows and columns. You can call up the corresponding detailed information for the items displayed. To do this, select the appropriate value and open the corresponding menu.
See Also

4.7.4 Dunning History - Documents Overview

This report shows each customer's detailed dunning history using individual documents. Canceled items are not included.

Key Date The current date is specified in the default display. The system deals only with dunning notices that were created up to the selected date.
For more information about the standard variables, see Overview of Reports in Financial Management. Overdue payment items can be dunned in accordance with the configured steps. If all the steps have been performed, the affected items will not be selected in an additional dunning run. We advise against using these items in an additional dunning document to prevent the previous correspondence from becoming invalid. A company would then usually take legal action. You can use this report to determine any overdue payment items. On the variable screen, specify the dunning date up to which you want to perform the search. Use the free characteristics to copy the Dunning Level field to the lines displayed and sort this field in descending order starting with the greatest value displayed at the top of the list.

For each customer, the report shows the document numbers, due date, the period of time in days that items are overdue at the time the dunning notice is sent, and the dunning amount. The data in this report is displayed in table format. You have the following options for analyzing the report:
You can restrict the data that is displayed. To do this, choose Filter.
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To further analyze data in this report, you can drag characteristics to rows and columns. You can call up the corresponding detailed information for the items displayed. To do this, select the appropriate value and open the corresponding menu. To be able to navigate to the source document, add the following characteristics to the report:

See Also

4.7.5 Dunning Statistics Overview

This report shows your company's dunning activities for each customer . In this way, you can track all your customers' overdue payment items in detail. Canceled items are not included.

Business Partner You can restrict the display to one customer, which you can choose using the input help. Entry Date The system takes the previous two weeks as the default value for the documents entered.

This report provides you with details on your dunning activities, including the total receivables amount for each customer, overdue receivables from this amount, the dunning level, and dunning amount. Furthermore, the report shows the number of dunning items as well as items and amounts sent to the legal department. The following statistical information is also provided:
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Dunning amount statistics: The value displayed is calculated from the dunning amount divided by the receivables amount. Statistics from the legal department: The value displayed is calculated from the portion of the dunning amount that was sent to the legal department, then divided by the total dunning amount.

You can restrict the data that is displayed. To do this, choose Filter. To further analyze data in this report, you can drag characteristics to rows and columns. You can call up the corresponding detailed information for the items displayed. To do this, select the appropriate value and open the corresponding menu.
See Also

4.7.6 Details to Items of Customers Overview

This report lists all items for a customer for a particular period. Canceled items are not included.

Entry Date The system takes the previous two weeks as the default value for the documents entered. Item Status You can restrict the display to a specific item status, such as open, cleared, or unassigned. For this, use the input help.

The report displays for each item the full document amount as well as any cash discount available or taken, and amounts outstanding. The dunning level is also displayed for any overdue items. The data in this report is displayed in table format. You have the following options for analyzing the report:
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You can restrict the data that is displayed. To do this, choose Filter. To further analyze data in this report, you can drag characteristics to rows and columns. From each customer displayed, you can drill down to the relevant details. To do this, select the appropriate value and open the corresponding menu. To be able to navigate to the source document, add the following characteristics to the report:

See Also

4.7.7 Details to Open Items of Customers Overview

This report lists the open items of a customer for a specific key date. Canceled items are not included.
Views
Open Item List Customers (Standard) Displays for each customer all the open items for a specific key date as well as information about any cash discount available or taken. Open Item List All Items By Customers Displays a list of all the open items by document number in ascending order. Open Item List Summary By Customers Shows the total number of open items for all or a selection of customers. Open Item List Reconciliation Displays the open items for each customer and transaction currency. You use this view for technical reconciliation on the basis of the Accounts Payable Reconciliation report. For more information, see Accounts Payable Reconciliation.
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Key Date The key date always corresponds to the transaction date of the open items and not to the posting date. The system displays only items with a transaction date before the key date.

The data in this report is displayed in table format. Note the following for the individual document types:

Customer invoices are displayed as negative amounts. Customer credit memos are displayed as positive amounts. Payments do not have a specific due date. The net due date displayed therefore corresponds to the transaction date.

You can restrict the data that is displayed. To do this, choose Filter. To further analyze data in this report, you can drag characteristics to rows and columns. From each customer displayed, you can drill down to the relevant details. To do this, select the appropriate value and open the corresponding menu. To be able to navigate to the source document, add the following characteristics to the report:

See Also

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4.7.8 Customer List Overview

The customer list shows a list of all the customers that are in the system. You can view various data for customers, such as:

Business partner ID and name Address data Status Creation date User who created the record
4.7.9 Account Financial Data Overview

Provides an overview of financial data for accounts that can be used by sales managers and representatives for a synopsis of their account master data. It provides financial data, such as payment data, bank data, and credit card data, along with information about the related accounts.
Prerequisites
You have selected the report in your solution configuration. To find this business option, go to the Business Configuration work center and choose the Implementation Projects view. Select your implementation project and click Edit Project Scope . In the Scoping step of the project, ensure that Business Partners is selected within General Business Data. In the Questions step, expand the General Business Data scoping element and select Business Partners. Select Reporting and Analytics for Business Partners and answer the question related to the reports for accounts.
Views
The following views are available with this report:
Account Payment Data Displays payment data, such as the company ID, the account determination group, and the payment block reason. This view is also the pre-delivered default view of the report. Account Bank Data Displays bank data, such as the bank and the bank account data. Account Credit Card Data Displays credit card data, such as the type, the holder, and the expiration date of the credit card. Account Tax Data Displays tax data, such as the tax type, the tax number, and the tax number type.
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Before running the report, you can specify the data you want to see by making value selections for variables. The following variables are available for this report:

Company Account City Country Status

The report displays the following data:
Payment data for an account, including the following: Company ID

Account determination group Payment block reason Payment block expiry date Dunning block reason Dunning block expiry date Credit limit amount
Bank data for an account, including the following: Bank country

Bank name National bank code IBAN Bank account number Bank account holder Bank account validity period
Credit card data for an account, including the following: Credit card type

Credit card token Credit card holder Credit card expiration date Credit card blocking reason Indication of whether a credit card is the default credit card for the account
Tax data for an account, including the following: Tax type
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Tax number Tax number type Tax exemption reason Country of the tax number Country of the tax exemption
Basic data of the related account, including the following: Account name and ID
Address data
To further analyze data in this report, you can drag characteristics to rows and columns.
See Also
Overview of Reports in General Business Data Overview of Data Sources in General Business Data Reports View
4.7.10 SEPA Mandate List Overview

The report displays an overview of the SEPA mandates that have been created within your company to enable you to collect payments from your customers under the SEPA direct debit scheme.

Before running the report, you specify the data you want to see by making value selections for variables. Additional information is available for the following selected variables:
Mandate ID You can restrict the display to specific mandates. You can use the input help to select one or more mandate IDs. Mandate Type You can make a selection using the input help to restrict the display to a specific mandate type. If you want to see information on mandates from private individuals only, choose SEPA Core from the value help. If you want to evaluate mandate information for corporate accounts, choose SEPA B2B. Status You can restrict the display to mandates with a specific status. This status indicates, for example, whether a mandate can currently be used. Statuses include: In Preparation

Waiting for Confirmation Active Canceled
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Obsolete

This report displays all SEPA mandates for your company together with their respective data, such as the date on which they were last used or whether they are currently blocked for payments. You have the following options for analyzing the report:

You can restrict the data that is displayed. To do this, click on the filter symbol and select the required values. To further analyze data in this report, you can drag characteristics to rows and columns. From this report, you can navigate to any mandate document by clicking on its mandate ID.
See Also

4.7.11 Accounts Receivable Pledging of Open Items Overview

You can use this report to show all items that are pledged as collateral. These can be particular open items or if a customer account is pledged, all open items of this customer are marked. This report is relevant for Austria only.
Views
The following view is available with this report: Receivables Pledging of Open Items Shows all items for each G/L account and customer. By default, all open and partially cleared items are displayed. If an item is pledged, the related pledging ID and pledging description are given.
Features
Running the Report Before running the report, you can specify the data you want to see by making value selections for variables. You must make a value selection for all mandatory variables. In the system, mandatory variables are indicated by an asterisk (*). Additional information is available for the following selected variables:
Status You can specify the status of the line items. By default, open and partially cleared line items are displayed, but you can also display items that have already been cleared. Pledging ID
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If a customer account or open item has been pledged as collateral, the related pledging ID is shown. If the item is not pledged, then a hash symbol (#) is displayed. For more information about the standard variables, see Overview of Reports in Financial Management. You can save the entries you make on the selection screen as a variant . You can then reuse that variant the next time you run this report. Analyzing the Report The report is displayed in table format. You have the following options for analyzing the report:

You can restrict the data that is displayed. To do this, choose Filter. From each line item displayed, you can drill down to the relevant details. To do this, select the appropriate value and open the corresponding menu. In this way, you can display the relevant entry in the journal for a line item as well as the corresponding documents.
See Also
Accounts Receivable - Open Items
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5 Payment Management
5.1.1 Payment Allocation and Clearing Overview
Payment allocation and clearing are two distinct but related steps involved in payment processing. Payment allocation and payment clearing are necessary processes for both incoming and outgoing payments. The system usually performs both steps automatically. In some cases the system cannot perform these processes and will create manual payment allocation tasks or manual payment clearing tasks that require user involvement. The different situations that can result in these manual tasks are explained here, as is the relationship between payment allocation and payment clearing. You perform manual payment allocations from the Payment Management work center, in the Payment Allocation view. You perform manual payment clearing from the Payment Clearing view of either the Payables or the Receivables work centers, for customer and supplier payments respectively. These tasks can also be accessed from the Work view of the relevant work center. Payment allocation typically involves the assignment of a payment to a particular payment area, such as accounts payable, accounts receivable, or tax. The payment is then assigned to a particular business partner, such as a supplier, customer, or tax authority, within that area. Payment clearing then takes place, where the payment is matched with an open item and both are cleared. The system uses business partner and payment reference information, such as an invoice number, payment amount, and bank account to first select the correct business partner and then the correct open item. In some cases, due payment date and payment method are also used in this process. If all the relevant information is available and correct, then the payment allocation and the payment clearing will be performed automatically by the system.
Manual Payment Allocation Scenarios

In some cases, the automatic process described above is not possible. The different scenarios where this might occur are outlined here:

Missing business partner information Incorrect electronic bank statement configuration Transaction charges on foreign payments Bank charges or interest in bank statement
Missing Customer and Supplier Information

Payments can be received with missing customer or supplier information due to several reasons: a payment could be received from a third party payer, who has paid an open invoice on behalf of a customer. This might be a parent or subsidiary company of that customer, for example. If this payer party is not recorded in the customer master data record, then manual allocation of the payment to the customer will be required. Similarly, the customer or supplier information might be lost or corrupted at some point prior to the payment being received. Payment advices can also be affected by these problems.
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SAP Business ByDesign FP3.5 Payment Management
If a bank statement exists with an unknown bank account ID, the system performs a search based on invoice numbers in the note to payee. If a suitable invoice number is found, the payment is posted to the corresponding customer or supplier.
Incorrect Electronic Bank Statement Configuration

Payment notification can be received in the form of bank statement line items, informing you that a payment has been made to one of your bank accounts. If electronic bank statement files are used for this purpose, the import format used for the file must be configured so that the bank transaction code used by your bank for a particular payment method, for example a bank transfer, corresponds to the bank transaction code your company uses for that payment method. If these codes are not recorded correctly in your system, then the payments that have incorrect codes must be manually allocated to the relevant business partner. You define your transaction codes in the Business Configuration work center, in the Activity List view. In the Fine Tune step, choose Cash Flow Management -> Import Formats for Bank Statements. For more information, see Import Formats for Bank Statements.
Transaction Charges on Foreign Payments

In cases where payments involve business partners in other countries, your bank may charge handling or processing fees, depending on the payment method involved and your arrangements with the bank. If these payments are received or confirmed by bank statement, then these transaction charges can be included in the bank statement line item for each payment. In this situation, a manual payment allocation task will be created. The charges are posted to the relevant general ledger account using this task, and the balance of the payment is allocated to the relevant business partner.
Bank Charges or Interest in Bank Statement

If a bank statement contains bank charge or interest line items, then manual payment allocation of these items is required. However, in this situation, the payment allocation does not involve a business partner, but instead the charges or interest are posted directly on the relevant general ledger account. A manual payment allocation task will be created so this posting can be performed. Rent payments made by direct debit are also handled in this way.
Manual Payment Clearing Scenarios

Once payment allocation (manual or automatic) has been performed, a manual payment clearing task may be required, in the following circumstances:

Missing payment reference Payment difference Payment made before invoice is received
Missing Payment Reference

It is possible for a payment to be received without reference to the open item(s) that should be paid by that payment. Similarly, business partners may process externally initiated outgoing payments from your company without including payment reference information. Payment references can also be incorrect or include transposed digits. Payment advices can also be affected by these problems. Should these situations arise, the system will create a manual payment clearing task, so the payments or advices can be matched with the correct open items, and both can be cleared.
Payment Difference
Payment and invoice amounts do not always match: incorrect discounts may be applied to payments, or other deductions might be made from payment amounts, for example due to a dispute or a credit memo. Sometimes simply the wrong payment amount might be processed. In cases such as this a manual payment clearing task might be created, depending
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on the settings of your clearing strategy, if the payment tolerance is exceeded by the payment difference. You define a payment tolerance as part of your clearing strategy in the Business Configuration work center, in the Activity List view. In the Fine Tune step, choose Cash Flow Management -> Clearing Strategy. For more information, see Configuration: Clearing Strategies.
Payment Made Before Invoice is Received

Under certain circumstances, a payment can appear in the system before the corresponding invoice does. This can occur when a supplier processes an outgoing payment by direct debit, and then issues the invoice for the payment. Similarly, a customer may purchase a product online and pay immediately, but only receive an invoice with the shipped item. In these situations a manual payment clearing task will be created, as the system will not be able to find a matching invoice for the payments involved.
Influence of Payment Type on Manual Allocation and Clearing

The table below outlines the relationship between the type of payment involved (internally or externally initiated, incoming or outgoing) and the most likely reasons for a manual payment allocation or clearing task. Manual tasks for incoming internally initiated payments are so exceptional that it is not possible to predict a reason these tasks might occur. Reasons for Manual Tasks by Payment Type
Payment Type Manual Payment Allocation Scenario Manual Payment Clearing Scenario Unable to predict
Incoming internally initiated (credit card or Unable to predict direct debit) Incoming externally initiated (check or bank transfer) Missing business partner information or incorrect electronic bank statement configuration Incorrect electronic bank statement configuration Missing business partner information
All scenarios possible
Outgoing internally initiated (check or bank transfer) Outgoing externally initiated (credit card or direct debit)
Payment difference
Payment difference
5.1.2 Credit Card Chargebacks

As accounts receivable accountant it is your task to process your company's national and international payment transactions made with customers and other accounts receivable. This includes incoming payments as well as processing credit memos or customer-initiated chargebacks to their credit cards. The following sections explain these two scenarios.
Prerequisites
In the customer master data, you have specified payment by credit card as the payment method. You have entered a customer order invoice and specified payment by credit card as the payment method. In this step, you have checked the authorization of the credit card payment. The chargeback can be made if the customer payment has already been received, or the customer can initiate the termination of the transaction by the credit card company before the payment has been transferred.
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In the fine-tuning phase, the approval of company-initiated payments is defined in two tables to differentiate clearly between incoming or outgoing credit card payments. For more information, see Refund of Payments Received [144].
Process Flow
The following sections explain the procedure for charging back credit card payments. We can differentiate between two scenarios:

A credit memo you have initiated to the customer's credit card account A chargeback requested directly from the credit card company by the customer
Scenario 1
A customer lodges a complaint about goods received and returns them to your company. You make an agreement with the customer to post a credit memo to the credit card account. You inform the customer's credit card company that the amount needs to be posted back to the customer account.
Credit Memo Posting to the Credit Card Account

The customer has made a payment and this payment has been received. You want to create a credit memo for the customer and post the amount to the credit card account. 1. Navigate to the Customer Invoicing work center and choose the Invoices and Credit Memos view. 2. Select your released invoice and choose Follow-Up Manual Credit Memo . Click Release.
3. Navigate to the Receivables work center and choose Customers Customer Accounts . Select your customer account and click View Account. The Customer Account Monitor: <Name - Customer ID> screen is displayed. 4. Select the credit memo and choose Payment screen, click Close. Pay Manually By Other Payment Methods . On the New Manual
You can specify that this process runs automatically by selecting the Receivables work center and choosing Periodic Tasks Payment Runs . The payment is then initiated in the payment run.
5. If the payment needs to be approved, navigate in your role as manager to the Managing My Area work center and choose the Approvals view. Select the payment and click Edit. Click Approve. 6. Go to the Payment Management work center and choose the Payment Monitor view. Select the outgoing credit card payment and choose Actions for Credit Card Settle .
You can specify that this process runs automatically by selecting the Payment Management work center and choosing Periodic Tasks initiated during this run. Credit Card Settlement Runs . The credit card payment is then
7. Create the bank statement for the outgoing payment in the Liquidity Management work center in the Bank Statements view. Choose New Bank Statement .
8. On the Bank Statement: <Number> screen in the step Enter General Data, enter in the Closing Balance field the difference between the opening balance and the outgoing amount and then click Next twice. Alternatively, the bank statement can be imported automatically using a file.
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9. In the Create and Edit Items step, click Add Row. In the Payment Method column, choose Outgoing Bank Transfer and enter the outgoing amount in the Debit Amount column. Click Release. 10.Go to the Payment Management work center and choose the Payment Allocation view. Select the Bank Statement with In Preparation status in the payment allocation and click Edit. 11.On the Payment Allocation: <Number> screen, choose the Payment Assignment tab and select the payment. Copy this payment to the lower screen area using the down arrow. Click Release. 12.In the Payment Management work center in the Payment Monitor view, you can now view the payment with Confirmed status.
Scenario 2
A customer initiates the chargeback of a payment directly with the credit card company. You are informed about this chargeback in the bank statement or the credit card settlement from the credit card company.
Customer-Initiated Chargeback With the Credit Card Company

The customer may request that a payment is charged back to a credit card after you have already received the payment. The credit card company initiates the chargeback from your account. You can view the cash withdrawal on the bank statement. We can differentiate between two situations: In the first case, the incoming payment has already been confirmed by the bank on the bank statement. The next statement received from the bank contains the outgoing payment. In the second case, both the incoming and outgoing payments are included on the same bank account statement. However, the credit card company can cancel the payment even if no payments have been made to your account at a particular time. In this case, you will be informed online using a payment advice or credit card settlement. The following section explains the procedure to be followed if you receive a credit card payment for an existing bank statement and this payment needs to be posted back. 1. You create a bank statement using the outgoing payment. Navigate to the Liquidity Management work center and choose the Bank Statements view. Choose New Bank Statement .
2. On the Bank Statement: <Number> screen in the step Enter General Data, enter in the Closing Balance field the difference between the opening balance and the outgoing amount and then click Next twice. 3. In the Create and Edit Items step, click Add Row. In the Payment Method column, choose Outgoing Bank Transfer and enter the outgoing amount in the Debit Amount column. Click Release. 4. Go to the Payment Management work center and choose the Payment Allocation view. Select the bank statement and click Edit. On the Payment Allocation: <Number> screen, choose the Payment Assignment tab. 5. Select the confirmed payment using the dropdown list options Display All Payments Confirmed By Bank You can then copy this payment to the lower screen area using the down arrow. The indicator in the Payment Returned column is set automatically. Click Release. 6. The outgoing payment is now displayed in the Payment Management work center in the Payment Monitor view with a negative amount and Returned status. The following section explains the procedure used if the incoming payment and the outgoing payment that was posted back are both listed on the same statement issued by the bank. 1. You create a bank statement using your incoming and outgoing payments. Navigate to the Liquidity Management work center and choose the Bank Statements view. Choose New Bank Statement . .
2. Enter the closing balance of your bank statement on the Bank Statement: <Number> screen in the Enter General Data step. For the following example, this balance corresponds to the opening balance plus the incoming payment amount. Click Next twice.
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3. In the Create and Edit Items step, click Add Row. In the Payment Method column, choose Outgoing Bank Transfer and enter the outgoing amount in the Debit Amount column. This amount is derived from all the incoming credit card payments and the outgoing payment (chargeback) that are included on the bank statement. Click Release. 4. Go to the Payment Management work center and choose the Payment Allocation view. Select the bank statement and click Edit. 5. On the Payment Allocation: <Number> screen, choose the Payment Assignment tab and select all the incoming credit card payments that belong to the total amount entered on the bank statement. Copy this payment to the lower screen area using the down arrow. For the payment that was charged back, set the indicator in the Payment Returned column. Click Release. 6. You can now view your incoming and outgoing payments in the Payment Management work center in the Payment Monitor view. The status of the incoming payments is Confirmed and for the outgoing or charged back payment Returned. The following section explains the procedure used if your credit card company sends you a payment advice informing you that the transaction has been cancelled and therefore the transfer cannot be executed. 1. The status of the payment is In Transfer and can be checked in the Payment Management work center in the Payment Monitor view. 2. Go to the Liquidity Management work center. In the Bank Payment Advices view, choose Advice . Enter the following data and then click Release: Advice Type: Bank Credit Advice

New
Bank Payment
Payment Method: Credit Card Payment Amount: 0,00 Payment Confirmed: Set the indicator. Account: Choose the account for the incoming payment.
3. Go to the Payment Management work center and choose the Payment Allocation view. Select the payment allocation for the payment advice and click Edit. 4. On the Payment Allocation: <Number> screen, choose the Payment Assignment tab. Select the incoming credit card payment that was returned and copy this to the lower screen area using the down arrow. Set the indicator in the Payment Returned column. Click Release. 5. The payment that was cancelled is now displayed in the Payment Management work center in the Payment Monitor view with the status Returned.
See Also
Automatic Incoming Payments [35] Manual Incoming Payments [40] Quick Guide for Returns
5.1.3 Cash Outpayments - Switzerland
This document contains text that is relevant for Switzerland. To ensure that the system displays the correct text, select Personalize >My Settings. Select Onscreen Help and, under Country, choose Switzerland. Save your settings and logout to ensure these changes are made.
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5.2 Payment Monitor View

5.2.1 Payment Monitor Quick Guide
In the Payment Monitor view, you can track and maintain all your company's incoming and outgoing payments. You can filter the payments by date, by payee, or by status, for example, to show obsolete payments which have been canceled, returned, or rejected payments. You can create new payments, or enter payments that are created manually or outside of the system. You can also view payment details for each item. These details vary depending on the payment method and status of the payment, for example, deposit data for incoming checks, or the reason why a check was voided. You can access the Payment Monitor view from the Payment Management work center or from the Liquidity Management work center under Payment Monitor.
Business Background Incoming Payments

The incoming payment process covers the acquisition of liquid funds in the company. Thus an incoming payment increases the cash and cash equivalents such as the cash balance or bank balance. An incoming payment does not necessarily increase the financial assets, this includes short-term payables and receivables. The clearing of a receivable by an incoming payment increases the bank account balance, however at the same time, the receivable expires but this does not change the financial assets. For more information, see Incoming Payments [31].
Outgoing Payments
The outgoing payment process covers the retirement of liquid funds in the company. Outgoing payments decrease the cash and cash equivalents such as the cash balance or bank balance. An outgoing payment does not necessarily decrease the financial assets, this includes short-term payables and receivables. The clearing of a payable by an outgoing payment reduces the bank account balance, at the same time, the payable also expires but this does not change the financial assets. For more information, see Outgoing Payments [11].
Bank Transfers
You can use bank transfers to make both automatic and manual outgoing payments. There are two types of bank transfer: bank transfers, which are used to make payments from a company account to third-party accounts; and bankto-bank transfers, which are used to transfer funds between company bank accounts. These are used mainly for transfers relating to liquidity management. For more information, see Bank Transfers [255].
Liquidity Check
A liquidity check is performed each time an outgoing payment is created to verify that there are sufficient funds available to facilitate the payment.
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The liquidity check is performed for all outgoing payments created in the Payables, Receivables, Liquidity Management, and Payment Management work centers. This includes the following payment methods:

Outgoing Wire Transfer Outgoing Bank Transfer Outgoing Check Bill of Exchange Payable
No liquidity check is performed for tax payments and cash transfers. For more information, see Liquidity Check [268].
Electronic Payment Formats

You use the Electronic Payment Format feature to select the relevant file formats for the automated process of transmitting electronic payments to your bank(s). For more information, see Electronic Payment Formats [274].
Manual Payment Formats

When you create an outgoing payment the system needs to communicate this information to the bank. In most cases, this is communicated directly to the bank using electronic data exchange, (for direct debits and wire transfers) or an electronic payment file (for bank transfers). The system uses payment formats as a medium to communicate the payment information to the bank. For more information about the electronic payment formats used by the system see Electronic Payment Formats [274] However, the system can also create outgoing payments without using the payment formats defined in the system. These payments are created using manual payment formats. The manual payment format can be used for outgoing payments that use the following payment methods:

Bank Transfer Wire Transfer Direct Debits
For more information, see Manual Payment Formats [275].
Cash and Liquidity Management

The Cash and Liquidity Management business scenario enables financial professionals at midsize companies to quickly and efficiently meet cash flow deadlines and achieve better transparency in managing the company's liquidity position. It comprises cash flow information from payables and receivables and tax, as well as payment and liquidity management, and streamlines your daily cash management cycle by automatically collecting and aggregating this information. This scenario covers the cash flow management cycle from the actual liquidity snapshot to forecasting, and analyzes steps through to optimized cash flow from money transfers or other cash flow impacting strategies. For more information, see Cash and Liquidity Management.
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Tasks Create a New Payment

1. Click New Payment By , then choose the appropriate payment method. You can create the following types of payments: Incoming Check

Outgoing Check Outgoing Bank Transfer Outgoing Wire Transfer Multiple Checks
2. Enter the relevant details for the payment method you selected. These details vary depending on the payment method selected. Mandatory fields are indicated by an asterisk (*). 3. Payments can be created with reference to an open item, customer, or supplier account, or they can be posted directly to a general ledger account. For selected incoming and outgoing payment types you can optionally define in the configuration settings whether approval tasks should be generated for this work center for specific payment methods and when you exceed a defined threshold amount. You find these settings in fine-tuning under Business Task Management for Payment and Liquidity.
Monitor Payment Allocation Processing

For more information on this activity, see here [259].
Create a New Outgoing Bank Transfer

1. Go to the Liquidity Management or Payment Management work center and open the Payment Monitor work center view. You can also perform this task in the Payables work center, Supplier Account Monitor view. 2. Click New Payment By , then Outgoing Bank Transfer.
3. Enter the relevant details for the bank transfer. The following fields are mandatory, as indicated by an asterisk (*): Company ID, Payment Amount, Payee, Payee Bank, and select a bank account ID to make the payment from. If you do not wish to perform a liquidity check on the bank account before the transfer is posted , select the Liquidity Allocation Not Required checkbox. For information about liquidity checks, see Liquidity Check [268]. 4. Click Complete Bank Data . The system automatically fills the other fields, where possible. For example, if you have not selected a bank account in the Bank Account ID field, the system automatically chooses the optimum bank account . To enter further details such as
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payment instructions, or to change the type of bank transfer, for example to international bank transfer, click View All to display all available fields. Payment instructions are additional services provided by your bank that may increase the security of the transaction, for example, calling the recipient bank with notification of a payment. These services are only available for international bank transfers. Your bank will inform you of the payment instructions it offers and any additional fees they charge for using them. If the bank transfer has already been completed outside the system, you do not need to create a payment file. If you do not wish to create a payment file for this bank transfer, select the Create Payment Manually check box. You can also choose the bearer of the bank charges arising from the transfer. If you do not want to execute the bank transfer immediately, you can enter the date that you want the bank to execute the transaction in the Bank Processing Date field. If you click Complete Bank Data after you enter this date, the system automatically fills the Expected Bank Value Date and Posting Date fields. 5. Select whether you wish to allocate the transfer to open items or post it directly to the general ledger account without allocating the payment. To allocate the bank transfer to open items, choose Reference to Items. The system displays open items for the supplier or customer account. You can then match the bank transfer to these open items. You can also add discounts to these items. If you want to pay items on behalf of another customer or supplier, click Accounts then Add Account. Now you can also choose from the open items belonging to the account you selected in addition. For more information on how to edit your open items, see Using the Open Items Table [93].
To use this bank transfer to make a payment that is not matched to any open items, choose Direct Posting to G/L Account. Select a country and choose the entry type Gross or Net. Click Add Row to manually assign the payment to the relevant general ledger account. You can also enter a memo line in the bank transfer.
6. Click Post . The bank transfer is displayed in the Payment Monitor work center view with the status Ready for Transfer. 7. A payment file must be created in the appropriate file format to be made available to the bank or banking software for processing. This can be done automatically using a payment file media run. For information on how to create a payment media run, see Create Payment Media Run [238]. To create the file manually for transmission to the bank, proceed as follows: 1. In the Payment Monitor view, select the relevant bank transfer, and click Actions for Bank Transactions , then Create Payment File. 2. Go to the File Management work center view, Outbound Files subview, select the new payment file, and click Edit . 3. From the Outgoing File screen, go to the Attachment tab and select the payment file. To download the file from the browser window to your computer, click Download . This document contains text that is relevant for Austira only. To ensure that the system displays the correct text, select Personalize> My Settings. Select the Onscreen Help and choose Austria in the Country drop-down menu. Save your settings and logout to ensure the changes are made.
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Create an Outgoing Check

1. Go to the Liquidity Management or Payment Management work center and open the Payment Monitor work center view. You can also perform this task in the Payables work center, Supplier Account Monitor view. 2. Click New Payment By , then Outgoing Check to open the New Outgoing Check screen. 3. Enter the appropriate data for the fields Company ID, Payment Amount, and Payee. 4. Click Complete Bank Data . The system fills the Bank Account ID and Bank Name fields automatically. 5. Ensure the Reference to Items radio button is selected, so you can match the check with the appropriate open item. All open items on the customer or supplier account should appear in the Open Items table, if you have previously entered the Payee. Select one or more open items to be paid by the check using the Matched indicator. Discounts or credits can be applied to the open items, if necessary, to ensure the payment amount matches the open item amount by clicking Actions , then Apply Discount or Credit . For more information on how to edit your open items, see Using the Open Items Table [93]. If the check you are issuing is not related to a customer or supplier account, select the Direct posting to G/L Account radio button, then select an appropriate general ledger account to which the check should be posted. You would do this if your company wished to make a charitable donation, for example. 6. To save your check, click Post . 7. To manually print a check to send to the recipient, click Actions for Checks Check Form. , then Print
Outgoing checks are printed automatically by the system on a regular basis. If you create a check outside of the system, you can stop printing for the check (based on the check information you enter into the system) by selecting the Set as Manually Created indicator.
To void a check, for example if the check form is damaged in the printer and you need to print a new one, click Actions for Checks , then Void. This option is possible while the check has the status In Transfer. Note that voiding a check does not cancel the payment; it simply invalidates the old check and generates a new check number. To cancel a check, click Reverse . Note that you can only cancel a check while it has the status Ready for Transfer. For more information, see Check Lots and Check Numbers for Outgoing Checkes [257].
Enter an Incoming Check

1. Go to the Liquidity Management or Payment Management work center and open the Payment Monitor work center view. 2. Click New Payment By , then Incoming Check to open the New Incoming Check screen.
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To enter more than one new check, click New Payment By , then Multiple Checks to open the New Multiple Checks screen. Note that with this action you are not able to clear open items. 3. Enter the relevant payment details, including the data for the fields Payer, Check Number, Payment Amount , and select the correct currency from the dropdown list next to the amount. Enter other information as required. 4. Under Payment Application Method, select whether you wish to allocate the check amount to open items or post it directly to the general ledger account without allocating the payment. To allocate the check to open items, choose Reference to Items. The system displays open items for the supplier or customer account. You can then match the check to these open items. You can also add discounts to these items.
To use this check to make a payment that is not matched to any open items, choose Direct Posting to G/L Account. Select a country and choose the Entry Type. Click Add Row to manually assign the payment to the relevant General Ledger account.
5. Click Post to save and post the new check. If you want to create more than one check you can also use the Post and New button. The new check is saved in the system and added to the payments listed in the Payment Monitor view.
Work with an Existing Payment

Depending on the payment method used for each payment, several editing options are available, which influence the status of the payment or the payment itself. 1. Select the relevant payment and click Edit . The relevant screen for the selected payment type opens. 2. To prevent the payment from being completed, click Reverse . 3. To create a remittance advice for the selected payment, provided the payment method supports remittance advice, click Create Remittance Advice . Depending on the status of each payment, it may not be possible to edit or reverse the payment, or to issue a remittance advice. 4. In addition to the general functions listed above, each payment method has additional possible actions: Actions for Checks Set To in Transfer: Indicates that a paper check has already been created for the payment.
Void: Cancels the specific check that has been issued, and leaves the open payment in the system so that a new check can be issued. Assign to Deposit: Adds the check to an appropriate check deposit, so it can be sent to the bank. Print Check Form: Instructs the system to print a check letter for the check. Renumber: Allows a new check number to be assigned to a check, for example, due to a mismatch between the check number in the system and the number printed on the check. Toggle: Switches the check numbers of two selected checks.
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Set to Not Transferred: Indicates that a check has not yet been sent to a bank or customer or supplier, so that it can be reissued. This may be necessary if a check was incorrectly printed, for example.
Actions for Bank Transactions Create Payment File: Sends the payment file that will be sent to the bank to the Liquidity Management work center. The payment file will be created in the next scheduled payment media run if this action is not used.
Set to in Transfer: Indicates that the transfer has already taken place, using online banking or a money transfer service, for example. Set to Not Transferred: Indicates that a transfer has not yet been sent to a bank or business partner, so that it can be reissued. This may be necessary if the payment file was incorrectly transferred or was corrupted.
Actions for Credit Cards Settle: Settles a credit card payment that has not already been transferred.
5.3 Payment Allocation View

5.3.1 Quick Guide for Payment Allocation
In the Payment Allocation view, you can track payments and remittance advices that require manual payment allocation. This situation applies when the system cannot allocate payments to a customer or supplier using the available data, for example. You can use this view to manually allocate payments or payment advices to particular customers, suppliers, or business transactions. The process of manual payment allocation incorporates additional allocations, such as posting bank charges or entering a line item directly on a G/L account. It is essential that your payments are allocated correctly so that the status of all your payment items is kept up-to-date. Payment allocation takes place before the clearing process whereby payments are matched to open items, which consequently clears open payable or receivables. You can access this view from the Payment Management work center.
Business Background Payment Allocation and Clearing

Incoming Payments
The incoming payment process covers the acquisition of liquid funds in the company. Thus an incoming payment increases the cash and cash equivalents such as the cash balance or bank balance.
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An incoming payment does not necessarily increase the financial assets, this includes short-term payables and receivables. The clearing of a receivable by an incoming payment increases the bank account balance, however at the same time, the receivable expires but this does not change the financial assets. For more information, see Incoming Payments [31]
Outgoing Payments
Tasks Allocate a Payment Manually

For more information on this task, see here [202].
Reverse a Payment
1. If you want to reverse a payment that was debited incorrectly from your account or if a credit memo was posted by mistake, for example, select the appropriate allocation (the preceding document is the bank statement) and click Edit . 2. In the Edit Payment Allocation editor under Allocation Details, select an appropriate Return Reason from the dropdown list. 3. Choose Actions Mark as Return . The system creates a reimbursement item, which is displayed in the payment monitor. It is easier to display the item by going to the Payment Monitor view to the Advanced area, where you can choose the payment method Outgoing Refund of Incoming Payment or Outgoing Refund of Outgoing Payment. Inform your bank that you want to reverse the debit or credit memo postings on your account, since the system cannot trigger this activity automatically. 4. Once the bank has credited or debited the appropriate amount on your account and confirmed this on your bank statement, you can allocate the reimbursement item in the Payment Allocation view. You can find this item in the Edit Payment Allocation: <ID> editor on the Payment Assignment tab. From the dropdown list, choose Show Returned Payments . Release the allocation when you have finished processing.
Add a Memo Line Analysis Rule

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5.3.2 Allocate a Payment Manually Overview

If the system is not able to allocate a payment automatically, it cannot release it. This can be because information is missing that the system requires to allocate a payment, such as a customer or supplier, open item, or account. For this reason, you have to make the allocation manually and then release. The process of manual payment allocation incorporates additional allocations, such as posting bank charges or entering a line item directly on a G/L account.
Prerequisites
An externally initiated payment was entered that the system cannot allocate automatically. The payment can be both an incoming and outgoing payment.
Procedure
1. In the Payment Management work center, under Payment Allocation, select the allocation that you want to edit and click Edit . Alternatively, you can call up the required allocation task using the Work view. In both cases, the same entry screen appears. The details of the original payment, note to payee, and other known details about the respective preceding document (for example, check, bank statement, payment advice) are displayed on the Edit Payment Allocation editor on the Original Payment tab at the top of the screen. Information is displayed about related payment media, bank statement or payment advice line items. You can use these details to determine the reason for the payment allocation task and the relevant business partner. The References tab can give you references to invoices or open items that should be cleared with the payment. 2. Once you have found the missing data that has triggered the manual allocation task, you can allocate the payment completely or partially using the following tabs: a.
Customer/Supplier
If customer or supplier data is required, you can enter the customer or supplier on this tab. In the Open Items table, the open items for this customer or supplier are displayed. If you need to allocate the transaction amount to several customers or suppliers, go to the Open Items table and click Accounts , then Add Account. For more information, see Using the Open Items Table [93]. If you select a tax authority instead of a customer or a supplier, you define the amount as a payment for VAT / sales tax, withholding tax, or service tax (India). For all other tax types, you have to enter the relevant amounts under Other Allocation. If you receive or make recurring payments from or to customers or suppliers, you can reuse this assignment of the customer or supplier to the bank data specified in the bank statement item you edit in this tab. To make use of this function, set the Remember Assignment for Future Payment Allocations indicator. The next time a payment allocation occurs, the system can automatically assign the payment to the given customer or supplier based on the bank data given in the bank statement item, hence saving you manual effort. b.
Payment Allocation
The payment items that are in transfer and for which this payment allocation is possible are displayed on this tab. You can remove items from this list or add them again using the arrow symbols. This can be necessary, for example, if the details of a bank statement line item do not match the appropriate payment or check deposit that should confirm the bank statement.
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c.
Fees and Interest
If the payment is a fee or interest, you can make the appropriate allocation on this tab. You can also separate fees from payments or bank statement line items that contain fees for special transactions. You can specify the fee amount contained in the payment and post it separately to an appropriate account. d.
Other Assignment
You can use this tab to make postings directly to certain general ledger accounts if payments were made that do not relate to open items. This can be, for example, lease and rent revenues or revenues from an insurance payout that your company receives. The amounts that you allocate on the respective tab are displayed in the Allocated Amounts area. However, in the header of the editor, the total of the already allocated amounts are displayed as the allocated amount and the part of the transaction amount that you have not yet allocated is displayed as the open amount. If a payment should be reimbursed, for example, because your account was debited incorrectly, arrange a posting to a prior period with the bank and reverse the payment in the system. You enter a return reason and choose Actions Mark as Return . Once the bank has credited the appropriate amount to your account and confirmed this on your bank statement, you can allocate the reimbursement item in the Payment Allocation view. For more information, see Quick Guide for Payment Allocation [200]. 3. Optional: If you want to reverse the changes that you have made to the system's allocation proposal, choose Actions Create Proposal . In this way, all of the entries you have made are overwritten and the proposal is reset to the status when you first opened it. Alternatively, you can perform this action when, after you have opened and checked the task in the system, you add data, for example, bank data for a customer or supplier. The allocation is started again and the system can find the previously missing data. 4. Choose Post . If you want to save the allocation initially as a draft without releasing it, click Save .
Result
The allocation that you have manually performed and completed, makes sure that the system can continue the payment process and can begin with automatic payment clearing.
Example
An employee receives notification that business partner information is missing for an incoming payment. The employee opens the Payment Allocation view and finds the relevant payment allocation. He or she checks the payment and allocates it to the correct business partner by comparing the payment information to any open invoices. He or she can use information such as the payment method, amount, currency, and payment date, to help select the correct business partner for payment allocation.
5.3.3 Memo Line Analysis Rules Overview

After you release a payment transaction, the system tries during payment allocation to assign it to the correct customer, supplier, open item, or account, for example. If this automatic allocation fails, the system generates a manual allocation task. In order to achieve as many automatic allocations as possible, you can create your own rules based on memo line content. These rules influence how your payment transactions (for example, bank statements or incoming checks) are assigned based on the information contained in the memo line. They are designed to find structured information, which can be used for allocating payments automatically.
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When you create a rule, you define on the one hand what information you expect to be contained in the memo line (for example, an invoice number or an amount), and on the other hand where the payment is to be allocated to. You can create memo line analysis rules in the following screens:
Payment Management work center, Payment Allocation view: Select a payment allocation from the worklist and click Edit . In the Payment Allocation view, click the Edit Rules for Analyzing Memo Lines link. Business Configuration work center, Implementation Projects view: Select your implementation project and click Open Activity List . Select the Fine Tune phase, then select the Global Settings for Payment activity from the activity list. On the activity details screen, click the Edit Rules for Analyzing Memo Lines link in the Rules for Analyzing Memo Lines section. To be able to access this functionality, the Business Configuration work center must be assigned to you. Configuration settings are normally performed by a key user. If you do not have the Business Configuration work center assigned to you, contact your key user.
Process Flow
When you use your own memo line analysis rules, the system proceeds as follows during the payment allocation step: It analyzes the relevant memo line using the rule and then uses the resulting information to find the correct allocation target, that is, the element to which the payment transaction is to be assigned, for example:
If the system identifies an invoice number according in the memo line based on the rule definition, it attempts to find the corresponding invoice and to clear it automatically. If the system identifies bank charges within the memo line based on the rule definition, it automatically posts the specified amount as bank charges.
You can create memo line analysis rules in different definition modes, depending on the content to be identified in the memo line. The following modes are available and described below: 1. Search Term Mode Use this mode if you want to search the memo line for a specific term, for example an invoice number or customer number. You can define the search result using several parameters. To create a rule in the search term mode, click Add Row . Enter a rule name and a description for your new rule. From the Rule Type dropdown list, select the search item you want to create the rule for. From the Rule Definition Mode dropdown list, select Search Term. Enter the relevant values in the two sections described below: Search Term In the Text Before Search Result field, you can enter texts that are likely to precede the search result in the memo line. You can create any number of preceding texts to cover as many variations as possible by adding new lines and entering the corresponding texts. If you are creating a rule for searching for invoice numbers, for example, you could enter Invoice:, Inv.:, CI: and so on.
Rule Description In this section, you can specify the individual parts of the search result using the following parameters: Search Result Prefix Enter the characters that will precede each search result of this rule.
Search Result Suffix Enter the characters that will follow each search result of this rule. Minimum Length
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Enter the minimum number of characters within the variable part of the search result.
Maximum Length Enter the maximum number of characters within the variable part of the search result. Alphanumeric Select this checkbox if you want to allow numbers as well as letters within the variable part of the search result. In this case, the following example search result will be found: CI-595AB9. If you do not select this checkbox, only results containing numbers such as CI-595659 will be found.
2. Text and Placeholder Mode Use this mode if you want to search the memo line for a combination of a text and one or more placeholders, for example for amounts or dates. You can define the rule in a way that only one placeholder amount will be posted automatically, for example to an account or as fees/interest. To create a rule in the text and placeholder mode, click Add Row . Enter a rule name and a description for your new rule. From the Rule Type dropdown list, select the search item you want to create the rule for. From the Rule Definition Mode dropdown list, select Text and Placeholder. Enter the relevant values in the two sections described below: Text and Placeholder In this section, you can specify the structure of text and placeholders: Search Text Incl. Placeholders Enter the text to be searched for and enter placeholder variables where you expect in the memo line. Enter placeholder variables in the format &1, &2, &3 to &9.
Result Selection Select whether a specific placeholder or the complete amount of the transaction (mostly corresponding to the bank statement item) will be used for the result processing. Note that if you select a specific placeholder as the result the currency is derived from the bank statement (or check). Credit/Debit Select whether the amount is to be interpreted as a positive or negative amount by the system.
Note that if you create and define a rule with the rule definition mode Search Term or Text and Placeholder without saving it, and then select a different rule definition mode, all rule definition details below the Rule Overview table are lost.
Placeholder Definition Placeholder Type Select the format in which the system is to interpret each placeholder. The available values are amount formats, date formats, or a general placeholder with no specific format.
Minimum Length If you select the general placeholder as placeholder type, you can enter a minimum length. Maximum Length If you select the general placeholder as placeholder type, you can enter a maximum length.
Note that if you create and define a rule with the rule definition mode Search Term or Text and Placeholder without saving it, and then select a different rule definition mode, all rule definition details below the Rule Overview table are lost. 3. Expert Mode If you need a more complex rule than the two modes described above, you can create your own rule pattern according to your requirements in the form of a POSIX-based regular expression. By creating a regular expression of this type, you can define a rule tailored exactly to your expected search result.
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To create a rule in the expert mode, click Add Row . Enter a rule name and a description for your new rule. From the Rule Type dropdown list, select the search term you want to create the rule for. From the Rule Definition Mode dropdown list, select Expert. Below you find two examples for regular expressions with corresponding explanations used as memo line analysis rules: 1. \b(?:Customer:\s+)(\d{ 5, 10})\b The \boperators match the beginning as well as the end of a word.
A pair of parentheses like () represents a subexpression, also called subgroup. In the first expression there are two sub-expressions: (?:Customer:\s+) and (\d{ 5, 10}). The first subexpression starts with (?:meaning that the part of a text matching this subexpression is not returned as a result while the match for the second subexpression is returned as a result. The d{5,10} statement describes a sequence of 5 to 10 digits.
2. \b(MCFLY\d{ 1, 2})\b In this example, a search is triggered for words beginning with MCFLY followed by a number containing one to two digits. Note that when you enter regular expressions it is expected that they contain exactly one subexpression which is defined as result to be returned (that is a pair of parentheses without ?: at the beginning). Memo Line analysis rules may be defined in a very specific or a more generic way. When you create generic rules, one result (bank charges, for example) might be found by two overlapping rules. In this case, the system is not able to assign the complete transaction uniquely and thus triggers a manual allocation task.
Simulation
To enable you to check how the rules you create will work, a simulation function is available. After you have created and saved a rule, you can click Simulate and enter a sample memo line, for example a memo line text you already have received in a customer payment. The simulation finds and displays all the rules that have results in the sample memo line together with the corresponding fragments extracted from the memo line.
See Also
Assign a G/L Account to a Memo Line Analysis Rule [209] Search Memo Lines for Invoice Numbers [206] Creation of Memo Line Analysis Rules for Common Use Cases [211] Rule Types For Analyzing Memo Lines [216] Finding Open Items for Externally-Initiated Payments [94]
5.3.4 Search Memo Lines for Invoice Numbers Overview

When you use memo line analysis rules, you can, amongst other things, create search rules for finding invoice numbers. This can be useful if you want to automate the payment allocation process in the system and hence reduce your manual efforts. Rules of this type can be useful when your customers or suppliers tend to state the invoice numbers in memo lines when making payments. Using these rules, the system can extract the relevant invoice numbers from the memo lines. If the system finds invoice numbers, it will assign the corresponding payments to the appropriate invoice items.
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You can create memo line analysis rules in the following screens:
Example
To illustrate how you can create rules for searching memo lines for invoice numbers, the following example is used: In your company you receive payments for customer invoices. Your invoice numbers follow the pattern MCCI-<number>. The memo lines for the payments usually contain the corresponding invoice numbers in their memo lines following the same pattern. The memo lines for the payments look like the following examples:
Payment for Invoice Number: MCCI-9875468 of 05-06-2010
Your Invoice: MCCI-78544, 04-06-2010, CUSTOMER 656548
Paym. Inv.: MCCI-00445557, 04-06-2010, Order 3547656548
Our order 434, Invoice.: 555008, 04-11-2011 Cust.:5584441
From these examples the following memo line structures can be derived:

Invoice Number: MCCI-<7-digit number> Invoice: MCCI-<5-digit number> Inv.:MCCI-<8-digit number> Invoice: <6-digit number>
Because payments with memo line references with combinations of these types occur often, you want to create rules covering these patterns in order to automate the payment allocation process. The rules you create will have to consist of several parts, like a prefix, a number, and a suffix. For this particular example, two different rules will be needed because in the last example the prefix of the invoice number is missing.
Procedure
1. Create a rule for complete invoice numbers The first three example patterns can be covered by one rule because they have the same structure, consisting of a preceding text, the invoice prefix, and the actual invoice number.
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a. In the Rule Overview table, click Add Row . b. Enter a rule name and a description for your new rule. Because you want to search for customer invoices, select Open Receivable Document ID from the Rule Type dropdown list. From the Rule Definition Mode dropdown list, select Search Term. c. In the Text Before Search Result table, enter the following three entries using Add Row : Invoice Number: Make sure that the Spaces Allowed indicator is selected because a blank space separates the preceding text from the invoice number.
Invoice: Make sure that the Spaces Allowed indicator is selected because a blank space separates the preceding text from the invoice number.
Inv.: Deselect the Spaces Allowed indicator because there is no blank space separating the preceding text from the invoice number.
d. In the Result Description section, enter the following values in the corresponding fields: Search Result Prefix: MCCI
Minimum Length: 5 Maximum Length:8 Alphanumerical indicator: deselected
e. Save the rule. With this rule, the following fragments of the corresponding memo line will be found: Invoice Number: MCCI-9875468

Invoice: MCCI-78544 Inv.:MCCI-00445557
2. Create a rule for incomplete invoice numbers In the example pattern Invoice: <6-digit number>, the prefix of the invoice number as it exists in the system is missing. Customers may leave the prefix out in the memo line deliberately thinking that it does not belong to the actual invoice number, for example. With the rule explained below you can cover this case as the rule can be defined to search for an incomplete reference. You can specify within the rule which prefix or suffix is to be added and to be used for the further processing of the search result. a. In the Rule Overview table, click Add Row . b. Enter a rule name and a description for your new rule. Because you want to search for customer invoices, select Open Receivable Document ID from the Rule Type dropdown list. From the Rule Definition Mode dropdown list, select Search Term. c. In the Text Before Search Result table, enter Invoice and make sure that the Spaces Allowed indicator is selected. d. In the Result Description section, leave the Search Result Prefix field empty. Enter the appropriate minimum and maximum length values according to how long you expect the invoice numbers to be. e. In the Rule Overview table, go to the Prefix Added to Result column and enter the value to be inserted before the incomplete invoice number: MCCI-. f. Save the rule. With this rule, the following fragment of the corresponding memo line will be found: Invoice: 555008
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Simulate Your Rules

1. To test your new rules, click Simulate . 2. Enter an appropriate memo line text to check which results the rule will find (for example Invoice Number: MCCI-9875468). 3. Click Simulate . The results that will be found using your rules are displayed in the Rules Found section. If your customers payment is displayed in this section, the rules and their assignment will work as intended. 4. Repeat the second and the third step for each of your new rules.
See Also
Memo Line Analysis Rules [203]
5.3.5 Assign an Account to a Rule for Analyzing Memo Lines Overview

When you use memo line analysis rules, you can create assignments so that your rules post a search result to specific G/L accounts. This can be useful if you want to automate the posting of recurring revenues or expenses. You can also specify that the amount that is to be posted to a G/L account is to be assigned to a cost center or a project as well. This document shows how you can set up your system to post a transaction amount or a part of it to a G/L account based on a concrete example. You can create memo line analysis rules in the following screens:
Example
To illustrate how you can create automatic postings to G/L accounts using memo line analysis rules, see the following example: Every month you pay the lease payments for two leased cars using direct debit as the payment method. This means that the car leasing company is allowed to collect the monthly payments from your bank account. The memo line contains the costs for each car. You want to post these costs to different cost centers. The monthly invoice amount is EUR 800.00 which is split into the two payment amounts 250 EUR and 550 EUR. Akron Cars Cust.No. 0499643
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Car F-DAA56 250.00 EUR Car F-DAA57 550.00 EUR Because this memo line pattern is the same every month, you want to automate the posting of the leasing costs by creating corresponding memo line analysis rules. To cover these transactions, you need to create two rules, one rule for each lease payment amount given in the memo line. In an additional step, you have to assign the rules to the corresponding G/L account posting with the specific cost center for each car.
Procedure
1. Create a Set of Rules
Create a Rule for Car F-DAA 56 a. In the Rule Overview table, click Add Row . b. Enter a rule name and a description for your new rule. From the Rule Type dropdown list, select Account Assignment. From the Rule Definition Mode dropdown list, select Text and Placeholder. c. In the Search Text Incl. Placeholders field, enter the following text: Akron Cars Cust.No. 0499643 Car F-DAA56 &1 EUR Car F-DAA57 &2 EUR. Press Enter to update the Placeholder Definition table with the placeholder variables you have entered. d. Assign the following placeholder types to the variables: Placeholder number 1: Amount in format 12,345.67
Placeholder number 2: Amount in format 12,345.67
Press Enter. e. From the Result Amount dropdown list, select &1 (for the first lease payment amount). Then select Debit from the dropdown list next to the selected variable. f. Save the rule.
Create a Rule for the Car F-DAA 57 a. Select the rule you created in step 1. b. Copy the rule by selecting it in the Rule Overview table and clicking Copy . Enter a rule name and a description for your new rule. c. From the Result Amount dropdown list, select &2 (for the second lease payment amount).
2. Assign a G/L Account to Your Rules After having created the rules, you have to specify the G/L account and cost centers to which each part of the total lease payments will be posted.
Assign a G/L Account and Cost Center to the Rules a. In the Rule Overview table, click Assign Account to Rule . b. On the Assign Account to Rule for Analyzing Memo Lines screen, click Add Row . c. Select the rule you created to identify the leasing rate for the first car F-DAA56. If needed, you can enter your company ID. d. From the General Ledger Account dropdown list, select the appropriate G/L account, for example, 7370 Rent or Lease. e. Select the cost center you want to post the cars leasing rate to. f. Repeat steps b. to f. for the second car F-DAA57 using a different cost center. g. Save your assignment.
3. Simulate Your Rules
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a. To test your newly created rules, click Simulate . b. Enter the memo line text contained in the payments of your customer: Akron Cars Cust.No. 0499643 Car F-DAA56 250.00 EUR Car F-DAA57 550.00 EUR. c. Click Simulate . The search results are displayed in the Rules Found section. If your payment to the leasing company is displayed in this section, the rules and their assignment will work as intended. The simulation is for test purposes only. No real postings will be made using this function.
See Also
5.3.6 Creation of Memo Line Analysis Rules for Common Use Cases Overview
You can create memo line analysis rules to streamline and automate the payment allocation process. With these rules, the system analyzes the memo lines of incoming or outgoing payments for information on invoice numbers, open items, and customers or suppliers, for example, in order to find the corresponding payment in the system. This document describes how you can define memo line analysis rules for common use cases and is intended to offer you guidance for creating your own rules designed for different scenarios. You can create memo line analysis rules in the following screens:
For more information on memo line analysis rules and their creation in general, see Memo Line Analysis Rules [203].
Rule Definition Details for Various Use Cases

To create a memo line analysis rule, navigate to the Rules for Analyzing Memo Lines screen. In the Rule Overview table, click Add Row . Define your rule according to the details given below and save your rule. The following sections provide you with the options you have to select and the values you have to enter in various rule definition scenarios using example memo lines for illustration purposes.
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Find Invoice Numbers in the Memo Line

Example Memo Line: Invoice CI-654851 of 04-08-2011 Explanation: The memo line contains the invoice number preceded by the text Invoice. The invoice number consists of the fixed prefix CI- (for Customer Invoice) and a variable part with a length between 6 and 8 characters. You want to extract the invoice number including the prefix from the memo line. Create the rule with the following parameters:
Column or Field Name Rule Definition Mode Rule Type Text Before Search Result Search Result Prefix Minimum Length Maximum Length Alphanumerical Selection or User Entry Search Term Open Receivable Document ID Invoice CI6 8 [Deselect]
Find Customer Numbers in the Memo Line

Example Memo Line 1: Subscription of Customer CU-054218 Example Memo Line 2: Monthly Payment, Cust. CU-4218 Explanation: The memo line texts Customer and Cust. that precede the invoice numbers are indicators for the alphanumeric string to refer to a customer number. To ensure that the number is correct, you can describe the expected result by determining that the fixed prefix of the customer number has to be CU-. The numerical variable may consist of of 4 to 10 characters. With the rule you create, you can extract the customer number from the memo line. Create the rule with the following parameters:
Column or Field Name Rule Definition Mode Rule Type Text Before Search Result Search Result Prefix Minimum Length Selection or User Entry Search Term Customer Customer, Cust. (use an individual line for each value using Add Row ) CU4
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Maximum Length Alphanumerical
10 [Deselect]
Find Bank Charge or Interest Information in the Memo Line

Example Memo Line: Paym. 2021100 05-11-2011, Bank Charges: 2.82 EUR Explanation: The memo line refers to bank charges. You want to identify these bank charges and post them to an appropriate account. For bank charges, the bank always uses the same text with only the relevant amounts differing for different transactions. Therefore you first create a rule in order to extract the amount part and identify it as bank charges. These charges will then be posted to the G/L account dedicated to charges, which is defined in account determination. Create the rule with the following parameters:
Column or Field Name Rule Definition Mode Rule Type Search Text Incl. Placeholders Placeholder Type (of the Placeholder 1) Result Amount Selection or User Entry Text and Placeholder Bank Charges Bank Charges: &1 EUR Amount in format 12,345.67 &1
Variant: The whole transaction amount consists of bank charges:

Bank Charges, Ref. Paym. 2021100 05-11-2011
This memo line does not specify an amount because the whole transaction amount consists of bank charges. In this case, use the rule definition mode Text and Placeholder as well. As search text, you can use Bank Charges, Ref. Paym. &2. The Placeholder &2 is needed to identify the variable part of the text. As the result amount, use Complete Amount.
Post Charges to a G/L account with Cost Center

Example Memo Line: AKRON Company, Charges, June 2011 Explanation: The memo line indicates that the whole transaction amount is charges. These charges are to be posted on a G/L account and assigned to a cost center. In a first step, you create a rule to identify the text AKRON Company, Charges and in a second step you specify and assign a G/L account and a cost center. Create the rule with the following parameters:
Column or Field Name Selection or User Entry
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Rule Definition Mode Rule Type Search Text Incl. Placeholders Result Amount
Text and Placeholder Account Assignment AKRON Company, Charges Complete Amount
Click Assign Account to Rule . Add a row and from the Rule column dropdown list, select the rule for the created rule and make the following selections:
Column Name General Ledger Account Cost Center ID Selection [Select the appropriate G/L account.] [Select the appropriate cost center.]
Variant: Only a part of the transaction amount consists of charges:

AKRON Company, 10.00 USD Charges, June 2011
Explanation: The structure of the memo line is similar to the one above, the difference being the search text and the variable part (amount). Create the rule with the following parameters:
Column or Field Name Rule Type Search Text Incl. Placeholders Placeholder Type Result Amount Selection or User Entry Account Assignment AKRON Company, &1 USD Charges Amount in format 12,345.67 &1
Click Assign Account to Rule and proceed as indicated above.
Find File References Contained in Memo Line Instead of Dedicated Bank Statement Field
Example Memo Line: Confirm Paym. Ref. 5484512151 Explanation: The memo line contains a reference to a payment confirmation (such as a confirmation of an outgoing bank transfer, a check deposit, or an outgoing check), which is usually entered by the bank in a dedicated field of the bank statement file. With the rule you create, you can find references based on the memo line. Using these references, the system tries to find the corresponding payment or payment message in order to confirm the bank statement. Create the rule with the following parameters:
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Column or Field Name Rule Definition Mode Rule Type Text before Search Result Minimum Length Maximum Length
Selection or User Entry Search Term DME Reference Confirm Paym. Ref. 3 32
Variant: Using rule type Text and Placeholder to extract the file reference from the memo line. Create the rule with the following parameters:
Column or Field Name Rule Definition Mode Rule Type Search Text Incl. Placeholders Placeholder Type Minimum Length Maximum Length Result Selection Selection or User Entry Text and Placeholder DME Reference Confirm Paym. Ref. &1 General Placeholder 3 32 &1
Find Incomplete Invoice or Customer Numbers (For Example Due to Missing Prefix)
Example Memo Line: Payment for Customer Invoice: 849845 Explanation: The customer wants to pay the invoice CI-849845. The prefix CI- is missing from the memo line, for example because the customer paying for the invoice does not realize that this prefix is an actual part of the invoice number. First you have to create a rule to find the incomplete invoice number, and then, within the same rule, define that the missing prefix (or suffix) should be added so that the system then can process the payment allocation with the complete invoice number. Create the rule with the following parameters:
Column or Field Name Rule Definition Mode Rule Type Text Before Search Result Search Result Prefix Search Result Suffix Minimum Length Maximum Length Selection or User Entry Search Term Open Receivable Reference Item Payment for Customer Invoice: [Leave empty] [Leave empty] 6 8
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Prefix Added to Result
CI-
See Also
Memo Line Analysis Rules [203] Assign a G/L Account to a Memo Line Analysis Rule [209] Search Memo Lines for Invoice Numbers [206] Rule Types For Analyzing Memo Lines [216]
5.3.7 Rule Types For Analyzing Memo Lines Overview

When you create a rule for analyzing memo lines, you have to select a rule type. This type specifies what kind of information you want to find in the respective memo line. The following list shows the available rule types and explains for which business transactions they can be used and how the corresponding rule will work.
Rule Type Business Transaction Outgoing direct debit Description
Open Payable External Reference
The rule searches for an open payable on the basis of the external reference. If the relevant payable item exists, the system assigns the payment to it in the payment allocation process. A common example for a payable external reference is the external document ID on a supplier invoice.
Open Receivable Document ID Open Due Item External Reference
Incoming bank The rule searches for an open receivable on the basis of the document ID. If the relevant transfer, lockbox payable item exists, the system assigns the payment to it in the payment allocation process. A common example for a document ID reference is the ID on a customer invoice. Incoming bank transfer, outgoing direct debit, lockbox The rule searches for an open payable or open receivable on the basis of the external reference. If the relevant item exists, the system assigns the payment to it in the payment allocation process. Common examples for due item external references are the external document ID of a supplier invoice and the external reference on a customer invoice. The rule searches for a customer ID. If the relevant customer ID is found in the memo line, it will be used to search for the open items of this customer.
Customer
Incoming bank transfer, outgoing direct debit, lockbox Incoming bank transfer, outgoing direct debit, lockbox Incoming bank transfer, outgoing direct debit, lockbox All bank transactions, lockbox
Supplier
The rule searches for a supplier ID. If the relevant supplier ID is found in the memo line, it will be used to search for the open items of this supplier.
Business Partner
The rule searches for a customer or supplier ID. If the relevant customer or supplier ID is found in the memo line, it will be used to search for the open items of this customer or supplier.
Account Assignment
The rule searches for a specific pattern (optionally containing an amount). This transaction can then be assigned to a specified account.
Bank All bank Transaction Fee transactions
The rule searches for a bank charge transaction amount and posts it separately as defined in the rule.
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DME Reference Outgoing bank transfer, incoming direct debit, check deposit, outgoing check, outgoing return of an incoming payment, incoming return of an outgoing payment Bank Charges Outgoing direct debit, bank charges Incoming bank transfer, bank interests
The rule searches for a DME reference (data medium exchange). The DME reference is an identifier that is transferred when an internally initiated payment is created in the system. Once the payment is confirmed with the corresponding bank statement item including the DME reference, the payment allocation process uses this reference to confirm the internally initiated payment. Although the DME references are usually contained in a dedicated field, they might also be used in the memo line.
The rule searches for a bank charge and posts it separately as defined in the rule.
Bank Interest
The rule searches for a bank interest amount and posts it separately as defined in the rule.
Open Receivable External Reference Open Receivable Payment Reference
The rule searches for an open receivable on the basis of the external reference. If the relevant receivable exists, the system assigns the payment to it in the payment allocation process. A common example for a receivable external reference is the external reference on a customer invoice. The rule searches for an open receivable on the basis of the payment reference (which is specified on the open due item, for example with the Swiss payment method inpayment slip with reference number (ISR)). If the relevant receivable item exists, the system assigns the payment to it in the payment allocation process. An example for a receivable payment reference is the ISR reference number on a customer invoice.
See Also
5.4 Petty Cash View

5.4.1 Quick Guide for Petty Cash
In the Petty Cash view, you can create and monitor petty cash for your company and also record incoming and outgoing cash payments made to and from your petty cash. Cash can be transferred between petty cash locations, or from and to bank accounts. You can create any number of petty cash funds for your company and view in the cash journal, in which the incoming and outgoing cash payments are recorded, the entire transaction history for a specific petty cash fund. The payments that can be entered in this view include the payment of occasional purchases and transactions in which customers or suppliers are involved. You can access this view from the Payment Management and from the Liquidity Management work centers.
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The incoming payment process covers the acquisition of liquid funds in the company. Thus an incoming payment increases the cash and cash equivalents such as the cash balance or bank balance. An incoming payment does not necessarily increase the financial assets, this includes short-term payables and receivables. The clearing of a receivable by an incoming payment increases the bank account balance, however at the same time, the receivable expires but this does not change the financial assets. For more information, see Incoming Payments [31]
Outgoing Payments
Editing Point of Sale Transactions

The Point-of-Sale Transactions view enables you to process sales transactions and cash transactions from an external system. An external sale is typically a business transaction that is performed at the point of sale, and subsequently entered in an external (remote) system before being transferred at a point later in time to the SAP Business ByDesign system. A cash transaction is the transfer of cash from one point-of-sale device to another with the external system. If a sales transaction or cash transaction is complete and consistent, it is automatically processed by the system and forwarded to Financial Management. However, should the sales transaction or cash transaction be incomplete or inconsistent, you can use the Sales Transactions subview and Cash Transactions view to receive, analyze, and process the sales or cash transaction data. You can then display and correct the data before it is released to Financial Management. For more information, see Editing Point of Sale Transactions [70].
Tasks Create Petty Cash

1. Click New , then Petty Cash. On the New Petty Cash screen, enter the basic data for your new petty cash fund. In addition to the petty cash ID, you specify the currency, for example. A petty cash fund can be created in only one currency. You also need to enter the account determination group. 2. Click Save . If you want to process your cash payments in different currencies, you need to create additional petty cash funds.
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You can create new petty cash funds in this view as well as in the Liquidity Management work center in the Master Data view.
Create An Outgoing Cash Payment

Enter an Incoming Cash Payment

Transfer Cash
Monitor Petty Cash Transactions in the Cash Journal

1. If you want to view the cash journal containing a list of all the transactions performed for a specific petty cash fund, select the petty cash that you want to display and click View . On the Petty Cash Journal: <Petty Cash Name> sceen, go to the Show dropdown list and choose All. All the incoming and outgoing payments are displayed together with details on the postings, such as the document ID and the posting date. 2. If you want to use the petty cash journal to reverse payments, select the relevant payment and click Reverse .
Close Petty Cash

1. If you want to close a petty cash fund that you no longer require, select the petty cash from the Petty Cash ID column. 2. On the Petty Cash: <Petty Cash Name> screen, click Actions , then Close Petty Cash.
To be able to close a petty cash fund, your entries must balance to zero. This means that you need to ensure that any cash balances are transferred to another petty cash fund or to a bank account.
5.4.2 Enter an Incoming Cash Payment Overview

In your day-to-day business operations, you might receive payments from your customers or other occasional payments in the form of cash. These transactions are recorded by the system in the cash journal, and monitored and cleared like any other payment. Incoming cash payments are posted directly to a G/L account or to a customer or supplier account in which the incoming payment can be assigned to an open item or entered without assignment as an on account payment. You can create outgoing cash payments in the Payment Management work center under Petty Cash.
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Prerequisites
You have at least one active petty cash fund containing sufficient cash for the payment.
Procedure
1. Go to the Petty Cash view and select the petty cash fund that you require. Click New Payment. You can use the same navigation path if you are using the cash journal. , then Incoming Cash
2. On the New Incoming Cash Payment screen, enter the relevant payment details. Enter a short description specifying the reason for the cash payment, as well as the receipt date of the payment, a receipt number, and the cash payer. The posting date is defaulted to the current date. However, you can change this date, if necessary. 3. To post the incoming cash payment to a customer or supplier account, select the Reference to Items radio button. Enter the relevant customer or supplier in the Payer field. The open items are then displayed in the Open Items table. You can now choose which open items in the list are to be paid by setting the Matched indicator next to the required items. If you want to enter deductions, such as cash discounts or reductions due to damaged goods, click Accounts then Apply Discount or Credit. For more information on how to use the Open Items table, see Using the Open Items Table [93]. To post the incoming cash payment directly to a G/L account, click the Direct Posting to G/L Account radio button. In the Entry Type field, specify whether the payment is to be displayed as a gross or net amount. Enter the payment amount in the Gross Amount or Net Amount field, based on your selection in the Account Assignment table, and choose the appropriate G/L account. If you choose a tax code, the system automatically calculates the tax amount. If necessary, the Tax Totals table displays all the tax-relevant postings created by your entries. If the payer wants to pay open items from another customer or supplier as opposed to paying his or her own open items, click Actions , then Add Account. A dialog box appears in which you can choose another customer or supplier. The available payers are retained, but the Open Items table now displays the open items of the customer or supplier account that you have just selected. For more information on how to use the Open Items table, see Using the Open Items Table [93]. 4. When all the details are correctly entered, click Post to save the incoming cash payment and to post it. Click Close to close the editor and return to the Petty Cash view or cash journal. 5. Optional: If you need to cancel an incoming cash payment, open the cash journal by selecting the relevant petty cash fund and clicking View . On the Petty Cash Journal: <Name of Petty Cash Journal> screen, select the relevant payment and click Reverse . ,
Result
The posting is made to the relevant G/L account or customer/supplier account, depending on your selections, and the new payment is displayed with its corresponding document number in the cash journal. The cash journal shows the current balance, which has been increased by the incoming cash payment.
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5.4.3 Create An Outgoing Cash Payment Overview

In your day-to-day business operations, it is sometimes necessary to pay for goods or services in the form of cash, in addition to your regular invoicing and payment processes. You can pay for such items using petty cash kept at your company. The system then records these transactions in the cash journal. You can create outgoing cash payments in the Payment Management work center under Petty Cash.
Prerequisites
You have at least one active petty cash fund containing sufficient cash for the payment. The steps described here refer to occasional operating costs, such as postage, in which an employee is given a sum of money to cover the cost of the item, or pays for the item him or herself and is subsequently reimbursed. Costs such as these are posted to the appropriate G/L account, rather than to a customer or supplier account.
Procedure
1. Go to the Petty Cash view and select the petty cash fund that you require. Click New Payment. You can use the same navigation path if you are using the cash journal. , then Outgoing Cash
2. On the New Outgoing Cash Payment screen, enter the relevant payment details. Enter a short description specifying the reason for the cash payment, as well as the receipt date of the payment, a receipt number, and the cash recipient, if required. The posting date is defaulted to the current date. However, you can change this date, if necessary. 3. Select whether you wish to allocate the cash payment to open items or post it directly to the general ledger account without allocating the payment.
To post the outgoing cash payment directly to an appropriate G/L account, choose the Direct Posting to G/L Account option. In the Entry Type field, specify whether the payment is to be displayed as a gross or net amount. In the account assignment table, choose the appropriate G/L account and tax code, and enter the net or gross amount of the payment, depending on the entry type you selected previously. You can also enter the relevant cost center or project task IDs. Furthermore, you can add lines if you enter items separately, split the posting between different G/L accounts, or want to use different tax codes. You can also delete lines if necessary. If you want to pay customer or supplier invoices, choose the Reference to Items option. Select open items from the list displayed and settle them with the payment transaction, or make on account payments without having to select an open item from the list. These payments are posted on the respective customer or supplier account. If you want to pay items on behalf of another customer or supplier, click Accounts , then Add Account. Now you can also choose from the open items belonging to the account you selected in addition. For more information on how you can edit your open items, see Using the Open Items Table [93].
4. Once you have entered all the details correctly, click Post to save and post the outgoing cash payment. Click Close to close the editor and return to the Petty Cash view or cash journal. 5. Optional: If you need to cancel an outgoing cash payment, open the cash journal by selecting the relevant petty cash fund and clicking View . On the Petty Cash Journal: <Name of Petty Cash Journal> screen, select the relevant payment and click Reverse .
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Result
If you have chosen the Direct Posting to G/L Account option, for example, the outgoing cash payment is posted to the selected G/L account and the new payment is displayed with its corresponding document number in the cash journal. The cash journal shows the current balance, which has decreased due to the outgoing cash payment.
Example
A company employee requires a small amount of cash to mail a business document. The employee pays the postage and receives a receipt in return. The employee then takes the receipt to the person responsible for petty cash, who in turn reimburses the employee. On the New Outgoing Cash Payment screen, you enter the payment details such as the amount, short text, and cash recipient, and select the appropriate G/L account. The cash payment is then released. The payment is entered in the petty cash journal and the cash balance is automatically updated.
5.4.4 Transfer Cash Overview

If your company manages one or more petty cash funds to make certain payments in cash, you need to make sure that sufficient cash is stored in the petty cash fund, but at the same time prevent excessive amounts of cash accumulating. Therefore, it is possible to make cash transfers between two petty cash funds, from petty cash to a bank account and vice versa. In this way, you can control liquidity and minimize security risks. You can create cash transfers in the Payment Management work center under Petty Cash.
Prerequisites
You have at least one active petty cash fund.
Procedure
1. To transfer cash from one petty cash fund to another, or from petty cash to a bank account, choose New -> Outgoing Cash Transfer. The New Outgoing Cash Transfer window appears. Enter the transaction amount, posting date, and document date for the petty cash location from which the transfer will be made. Use the appropriate radio button to specify whether the cash should be transferred to a petty cash fund or a bank account. Depending on your selection, make entries for the petty cash ID or bank account ID. 2. Choose Post . To transfer cash from a bank account to petty cash, choose New -> Incoming Cash Transfer. The Incoming Cash Transfer window appears. Enter the transaction amount and the account ID of the bank account from which the cash will be drawn, and then click Post .
Result
You have regulated the liquidity of your petty cash in the following ways; by transferring cash out of your petty cash fund to a bank account or other petty cash fund, or by transferring cash into your petty cash fund from another petty cash location or bank account.
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5.5 Deposits View

5.5.1 Quick Guide for Check Deposits
In the Check Deposits subview of the Payment Management work center, you can create deposits for incoming checks received from your customers or suppliers, which you can then group and deposit at your bank. The deposit slip is a document that contains all the information required for cashing the check. This includes the total amount, currency, references to the checks, and the account. You need to use a separate check deposit for each account and each currency. Once you have assigned all the required checks to the check deposit, such as all the checks received in one day, you release it and print it out. You then send the deposit slip together with the paper checks to the bank where they are processed and credited to the respective account. Your bank statement shows you that the payment has been received. Any checks that you assign to a check deposit need to have been entered beforehand in the Payment Monitor view.



To be able to use a check deposit, you first need to create a check storage. To do this, go to the Liquidity Management work center. For more information on this task, see Quick Guide for Master Data (Liquidity Management) [276].
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Create a Check Deposit

1. Choose New Check Deposit.
2. On the New Check Deposit screen, enter the data required for your check deposit, that is, in addition to your company, enter the account to which the checks should be credited. You can overwrite the default values for the following fields, if required: Posting Date Date on which you want to enter the deposit in financial accounting.
Deposit Date Date on which you want to cash the deposit at the bank. Value Date Date on which the bank expects to settle the value on your account. The default value is three days after the deposit date.
3. Choose Save .
Assign Check to Check Deposit

1. Go to the Payment Monitor view, select the required incoming check, and choose Actions
for Checks Assign to Deposit. A window appears in which you enter the deposit ID. You can also select the ID from the input help. If you do not specify or select a check deposit in the window displayed but confirm the empty field, the system automatically creates a new check deposit in the background. We recommend that you then navigate to the Check Deposits view and if necessary, overwrite the bank data selected by the system. 2. Optional: Select the required check, click Edit , then Assign to Deposit . A window appears in which you enter the deposit ID. You can also select the ID from the input help.
Unassign Check or Change Assignment to Check Deposit

1. If you want to unassign a check or change a check assignment (if you have assigned a check incorrectly to a deposit or if you are not ready to cash the check, for example), then select the deposit in the Check Deposit subview. Click Edit . 2. Choose the Assigned Checks tab and select the check. Then click Unassign from Check Deposit . If you want to make another assignment, click Change Assignment to Deposit and enter the check deposit ID in the window displayed, either independently or using the input help.
Release Deposit and Print Deposit Slip

1. When you create a check deposit, it has the status In Preparation. Before you are able to print a check deposit slip, you need to release the check deposit. Once the deposit has been released, you can no longer assign checks to the check deposit. Select the required check Actions Release and Print Deposit Slip. You can now send the deposit and choose printed check deposit slip together with your paper checks to the bank. 2. Optional: If you want to release a check deposit for payment but do not want to print the deposit slip, (if the bank provides the slip in paper format, for example), choose
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Actions Release and Set to In Transfer. In this way, the deposit obtains the required status meaning that the payment can then be confirmed in the system with the bank statement. If you initially choose to release only the deposit and not create a printout, select the appropriate deposit and click Edit . On the Check Deposit: <ID> screen, click Release . If you want to print the check deposit slip at a later date, select the appropriate deposit from the list and click Print Deposit Slip .
Delete Check Deposit

You can only delete check deposits if they have the status In Preparation and no checks assigned to them. It is not possible to delete released check deposits. 1. Select the appropriate check deposit and click Delete .
5.5.2 Quick Guide for Lockbox Batches

You can use the Lockbox Batches subview to track incoming checks that are processed by your lockbox providers and imported into the system as files. This is a service provided to you by your bank or another service agent. You obtain an address for your company that your customers and suppliers can use to send you checks. The checks are processed by the service provider in that the provider deposits the checks at your bank to be credited to your account. This subview informs you about the processing stages in which the provider send you files that you can upload to your system for checking. Your bank statement shows you that the payment has been received. The bank statement contains the corresponding check deposit that you can confirm in the system. In this way, your company can outsource manual tasks that arise from processing checks. Lockbox services are currently only used in the US. You can access this subview from the Payment Management work center under Deposits.


Payment allocation and clearing are two distinct but related steps involved in payment processing. Payment allocation and payment clearing are necessary processes for both incoming and outgoing payments. The system usually performs both steps automatically. In some cases the system cannot perform these processes and will create manual payment
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allocation tasks or manual payment clearing tasks that require user involvement. The different situations that can result in these manual tasks are explained here, as is the relationship between payment allocation and payment clearing. For more information, see Payment Allocation and Clearing [188]

To be able to use the lockbox service, you first need to create a check storage for your lockbox provider. To do this, go to the Liquidity Management work center. For more information on this task, see Quick Guide for Master Data (Liquidity Management) [276].
Upload a Lockbox Batch

1. To be able to display and check lockbox batches, you first need to upload the lockbox files to the system. To do this, go to the Liquidity Management work center and choose File ManagementInbound Files. 2. Select your company from the company file register and choose New Inbound File . On the New Inbound File screen in the File Type field, choose Lockbox. In the Sender Bank ID field, enter the service provider that sends you the lockbox files. 3. Select the file that you want to upload and click Start File Upload . If the file has already been uploaded, you can display and check the details. If the uploaded file is complete and free from errors, choose Actions Mark As Confirmed . If the files contain errors, choose Actions Mark As With Errors . For more information, see File Management Quick Guide [282].
Check a Lockbox Batch

1. Go to the Payment Management work center and choose Deposits Lockbox
Batches . Select the lockbox batch that you want to use and click Edit . 2. In the Lockbox Batch: <ID> editor, you can view the checks that belong to the batch. In the External Check ID column, you can use the check number to display the respective check. Checks that are processed using the lockbox procedure are always assigned to a check deposit. The deposits are always added to one lockbox batch.
Reverse a Lockbox Batch

1. If you want to prevent a check deposit from being paid, perhaps if the deposit includes an incorrect check, for example, then the lockbox batch can be reversed. To do this, go to the Payment Management work center and choose Deposits Lockbox Batches . Select the lockbox batch that you want to cancel and click Reverse . Note that it is not possible to reverse individual checks in the lockbox batch. You have to reverse the complete batch and the lockbox provider needs to send you
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an updated version of the lockbox file. You can then import the new file into the system.
5.5.3 Quick Guide for Bill of Exchange Deposits

In the Bill of Exchange Deposits subview, you can assign incoming bill of exchange receivables to a bill of exchange deposit so that your company can receive bill of exchange payments from customers. Each bill of exchange received from a customer must be assigned to a deposit. If you have assigned the appropriate bill of exchange to the deposit, it can be released and issued. You then send the bill of exchange deposits in file format to the bank for the amount to be credited. Your bank statement shows you that the payment has been received. Commercial transfers are not affected by bill of exchange deposits. There are two bill of exchange types that your company can use and assign to deposits - bills for collection and discounted bills. Both bill of exchange types or corresponding bill of exchange deposits are sent to the bank prior to the due date of the bills of exchange that they contain. If you use a bill for collection, payment is received on the due date of the bills of exchange. If you use a discounted bill, payment is received prior to the due date of the bills of exchange, since the bank purchases the bill of exchange and consequently allows a discount credit. If your company requires early payment for liquidity purposes, then we recommend using a discounted bill. However, you need to pay the bank for the early payment since you receive payment for the bill of exchange only, without interest or expenses. You can access this subview from the Payment Management work center under Deposits.


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1. To be able to create bills of exchange receivables or to use bill of exchange deposits, you first need to create a bill of exchange storage. To do this, go to the Liquidity Management work center and choose Master Data Bill of Exchange Storage.
2. Choose New Bill of Exchange Storage. In the window displayed, enter the required data including data for the following fields: Bill of Exchange Storage ID Enter a name for your bill of exchange storage. Alphanumeric values are permitted (such as AKRON 01).
Bank Account ID Specify the number of the account to which the bills of exchange are to be credited. , then Activate.
3. Click Save
If possible, create only one bill of exchange storage for each company.
Create a Bill of Exchange Deposit

1. Choose New Bill of Exchange Deposit.
2. In the New Bill of Exchange Deposit editor, enter the data required for your bill of exchange deposit, that is, in addition to your company, enter the bank account to which the bills of exchange should be credited and the currency (EUR) in which they should be paid. In the Deposit Type field, specify whether you want to assign a bill for collection or a discounted bill to the deposit. You can overwrite the default values for the following fields, if required: Posting Date Date on which you want to enter the deposit in financial accounting.
Deposit Date Date on which you want to cash the deposit at the bank. Value Date This field is activated if you have selected Discounting for the deposit type. Here you can enter the date on which the bank is to credit the amount to your account and consequently permit the discount credit.
3. Click Save and Close .
Assign Bills of Exchange to a Bill of Exchange Deposit

1. Go to the Payment Monitor view, select the bill of exchange receivable that you want to use, which has the status Ready for Deposit, and choose Deposit. Actions for BoE Assign to
2. In the displayed window, enter the number of the check deposit or select it using the input help, and specify whether you want to use a bill for collection or a discounted bill. Confirm your selection. The status of the bills of exchange then changes to Ready for Transfer.
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Unassign a Bill of Exchange or Change an Assignment to a Bill of Exchange Deposit

1. If you want to unassign a bill of exchange or change a bill of exchange assignment (if you have assigned a bill of exchange incorrectly to a deposit, for example), then select the deposit in the Bill of Exchange Deposit subview. Click Edit . 2. Choose the Assigned Bills of Exchange tab in the editor and select the bill of exchange. Then click Remove . If you want to make another assignment, click Change Assignment to Deposit , enter the bill of exchange deposit ID in the window displayed, and confirm your selection.
Release a Bill of Exchange Deposit

1. When you create a bill of exchange deposit, it has the status In Preparation. To be able to issue the bill of exchange deposit, that is, send the deposit to the bank, you first need to release it. Once the bill of exchange deposit has been released, you can no longer assign bills of exchange to that deposit. Select the appropriate bill of exchange deposit and choose Actions Release.
Once you have released a bill of exchange deposit, you cannot delete it. You can only delete a bill of exchange deposit with the status In Preparation by selecting the deposit and clicking Delete .
Issue a Bill of Exchange Deposit

To be able to send the bill of exchange deposit to the bank, it first needs to be issued. This generates a file, which you can then upload and send in subsequent steps. 1. Select the appropriate bill of exchange deposit and choose changes to In Transfer. Actions Issue. The status
2. Optional: If you want to reverse the In Transfer status because you do not yet want to send the file to the bank, for example, select the required deposit and choose to Not Issued. The status is then reset to Released. Actions Set
Send a Bill of Exchange Deposit as a File to the Bank

1. Go to the Liquidity Management work center and choose Files. File Management Outbound
2. Optional: If you want to check your bill of exchange deposit file prior to sending it, select your deposit with the status In Transfer. This status shows that the file was not yet downloaded and sent. Click Edit . On the Outgoing File: <ID> screen, select the Attachment tab and open the file from the document title. If the file contains errors, you can exclude it from being sent by choosing Actions Discard.
3. Select the bill of exchange deposit and click Edit . On the Outgoing File: <ID> screen on the Attachment tab, select the outgoing file and save it to your computer. You can now send the file to the bank.
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4. To indicate in the system that you have sent the file for the bill of exchange deposit to the bank, select the bill of exchange deposit and choose Actions Release. The status changes from In Release to Released for Transfer. This activity is only performed so that you can map the files that have already been sent in the system. 5. Once the payment deposit has been confirmed on the bank statement, select the bill of exchange deposit and choose Actions Confirm. The status changes from Released for Transfer to Confirmed. This activity is also only intended to provide an overview of the files that have been paid and their status. For more information, see File Management Quick Guide [282].
Reverse a Bill of Exchange Deposit

You can only delete bill of exchange deposits with the status Released. 1. Select the appropriate bill of exchange deposit and click Reverse . 2. A window is displayed in which you select the date on which the reversal journal entry is to be created for the bill of exchange deposit. The default value displayed here is the deposit date, which corresponds with the date on which a journal entry was created for the bill of exchange deposit in financial accounting. If the reversal is made on a date for which the accounting period is already closed, then you can overwrite this date.
5.5.4 Quick Guide for Bill of Exchange Cashings

In the Bill of Exchange Cashings subview, you can enter bill of exchange cashings that you receive from your bank. Your company receives a cashing notification from the bank in either electronic or paper form, which informs you about the approaching due date for bill of exchange payables. The payment will be made unless you tell the bank otherwise. If you enter a new cashing in the system, choose the bills of exchange that were included in the cashing you received from the bank. You can then approve or reject each bill of exchange. In this way, you can process bills of exchange with or without acceptance, as well as sole bills. Commercial transfers are not affected by bill of exchange cashings. You can access this subview from the Payment Management work center under Deposits.
Business Background Payment Allocation and Clearing

Outgoing Payments
The outgoing payment process covers the retirement of liquid funds in the company. Outgoing payments decrease the cash and cash equivalents such as the cash balance or bank balance.
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An outgoing payment does not necessarily decrease the financial assets, this includes short-term payables and receivables. The clearing of a payable by an outgoing payment reduces the bank account balance, at the same time, the payable also expires but this does not change the financial assets. For more information, see Outgoing Payments [11].
Tasks Upload Electronic Information for a Bill of Exchange Cashing

This section is only relevant if your bank sends you a cashing notification in electronic form. If you receive notification in paper form, refer to the section Create a Bill of Exchange Cashing. 1. To be able to display and edit bill of exchange cashings, you first need to upload the cashing files to the system. To do this, go to the Liquidity Management work center and choose File Management Inbound Files.
2. Select your company from the company file register and choose New Inbound File. On the New Inbound File screen in the File Type field, choose Bill of Exchange Cashing Advice. In the Sender Bank ID field, enter the financial institution that sends the data to you for the bill of exchange cashings. 3. Select the file that you want to upload and click Start File Upload . If the file has already been uploaded, you can display and check the details. If the uploaded file is complete and free from errors, choose Actions Mark As Confirmed. If the files contain errors, choose Actions Mark As With Errors. For more information, see File Management Quick Guide [282].
Create and Approve a Bill of Exchange Cashing Received in Paper Form

This section is only relevant if you receive a cashing notification from your bank in paper form and you need to create a bill of exchange cashing manually. If you receive notification in electronic form, refer to the section Approve or Reject a Bill of Exchange Cashing. 1. Choose New Bill of Exchange Cashing. In the guided activity for the New Bill of Exchange Cashing Advice, enter the data required for the bill of exchange cashing. This data can be found in the notification that you received from your bank. In addition to your company and the cashing advice number, enter the account from which the bill of exchange amounts are to be debited. Enter also the response due date proposed by the bank. If you do not respond by this date, the bank accepts the bill of exchange and debits the amounts. Click Next . 2. In the Select Bills of Exchange step, first select the bill of exchange that you want to accept, which is displayed according to company, bank account, and bill of exchange status. Then use the arrow symbol to copy the selected bill of exchange from the screen area All Unconfirmed Bills of Exchange to the area Accepted Bills of Exchange. Once you have checked all bills of exchange and accepted the ones you require, click Finish .
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This activity is only required to map in the system the bill of exchange cashings that you accept. The actual acceptance of the bill of exchange cashing is made in paper form when you return the cashing form back to your bank.
Accept or Reject a Bill of Exchange Cashing Received in Electronic Form

1. Select a bill of exchange cashing with the status In Verification and click Edit . 2. On the Bill of Exchange Cashing: <ID> screen, select the bill of exchange for which you want to accept cashing and click Accept Cashing . If you do not want to accept bills of exchange, make the appropriate selections and click Reject Cashing . If you reject a bill of exchange cashing, specify a rejection reason. 3. Click Release . If you want to save the cashing initially as a draft without releasing it, click Save . If the status is Released, you can reverse the acceptance for editing. To do this, select the relevant bill of exchange cashing and click Void . The status is then reset to In Verification. From this status, you can also reverse the cashing. (See section Reverse a Bill of Exchange Cashing).
Issue a Bill of Exchange Cashing Received in Electronic Form

To be able to send a bill of exchange cashing received in electronic form to the bank, it first needs to be issued. This generates a bill of exchange acceptance file, which you can then upload and send in subsequent steps. You can also perform this step directly after releasing the bill of exchange cashing. (See section Accept or Reject a Bill of Exchange Cashing Received in Electronic Form). 1. Select the appropriate bill of exchange cashing and click Issue. 2. Optional: If you want to reverse the In Transfer status because you do not yet want to send the file to the bank, for example, select the required cashing and choose Actions Set to Not Issued. The status then changes from Issued back to Released.
Send a Bill of Exchange Cashing Acceptance as a File to the Bank

1. Go to the Liquidity Management work center and choose Files. File Management Outbound
2. Optional: If you want to check your acceptance file prior to sending it, select the bill of exchange cashing acceptance with the status In Transfer. This status shows that the file was not yet downloaded and sent. Click Edit . On the Outgoing File: <ID> screen, select the Attachment tab and open the file from the document title. If the file contains errors, you can exclude it from being sent by choosing Actions Discard.
3. Select the bill of exchange casing acceptance and click Edit . On the Outgoing File: <ID> screen on the Attachment tab, select the outgoing file and save it to your computer. You can now send the file to the bank.
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4. To indicate in the system that you have sent the bill of exchange deposit file to the bank, select the bill of exchange deposit and choose Actions Release. The status changes from In Release to Released for Transfer. This activity is only performed so that you can map the files that have already been sent in the system. 5. Once the payment deposit has been confirmed on the bank statement, select the bill of exchange cashing acceptance and choose Actions Confirm. The status changes from Released for Transfer to Confirmed. This activity is also only intended to provide an overview of the files that have been paid and their status. If you return to the Payment Management work center to the Bill of Exchange Cashings view, you can see that the status of the bill of exchange cashing is now Cashed. For more information, see File Management Quick Guide [282].
Reverse a Bill of Exchange Cashing

If a bill of exchange cashing contains an error, it can be reversed. The process flow for this depends on whether the bill of exchange cashing was received in electronic form or created manually. 1. Reverse a Bill of Exchange Cashing Received in Paper Form a. Select the appropriate bill of exchange cashing with the status Released. b. Choose Actions Void. The status changes to Void and the bill of exchange cashing can no longer be edited. 2. Reverse a Bill of Exchange Cashing Received in Electronic Form a. Select the appropriate bill of exchange cashing with the status Released. b. Choose Actions Void. The status then changes to In Verification.
c. Choose Actions Reverse. The status changes to Void and the bill of exchange cashing can no longer be edited.
5.6 Remittance Advices View

5.6.1 Quick Guide for Remittance Advices
In the Remittance Advices view, you can enter all the incoming remittance advices that you received for payments initiated by your customers or suppliers. These payments can include outgoing payments by direct debit or incoming check payments and transfers that a customer or supplier informs you about prior to payment processing. Once you have entered the remittance advices in the system, they are used to support the automatic clearing process after the payments have been made. In some cases, no payment advices are created for payments initiated by a customer or supplier since they can usually be processed quickly. You might also not receive payment advices for payments if their usage has not been specified for particular customers or suppliers. Outgoing payment advices used to inform your customers or suppliers about payments you have initiated are created in the system as required but not saved. These outgoing payment advices can be generated directly from the system. You can access this view from the Payment Management work center.
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Business Background Supplier Payment Advices

A remittance advice is exchanged between the payer and payee. It contains detailed payment information for a specific date relating to one or more invoices. In this way, the remittance advice announces a payment transaction. Both the buyer and seller can send the message. The remittance advice informs when and how much of which invoice will be paid. It contains detailed information about a payment that is required to allocate and clear open items. For more information, see Supplier Payment Advices [67]
Customer Payment Advices

A remittance advice is exchanged between the payer and payee. It contains detailed payment information for a specific date relating to one or more invoices. Thus the remittance advice announces a payment transaction. Both the buyer and seller can send the message. The payment advice informs when and how much of which invoice will be paid. It contains detailed information about a payment that is required to allocate and clear open items. For more information, see Customer Payment Advices [62]
Electronic Submission of Outgoing Payment Advices

You can send outgoing payment advices to your customers or suppliers using an electronic interface as opposed to printing them in paper form. It is possible to do this if both you and your suppliers or customers have made the required system settings for this interface. For more information, see Electronic Submission of Outgoing Payment Advices [65].
Tasks Enter a Remittance Advice

Reverse a Remittance Advice

1. Select the remittance advice that you want to reverse. 2. Click Edit . Check the data to ensure that the advice you have selected is really the one you want to reverse. 3. Click Reverse . You can also reverse a remittance advice without rechecking the data. In this case, select the appropriate payment advice from the list and click Reverse . Confirmed remittance advices cannot be reversed.
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5.6.2 Enter a Remittance Advice Overview

You can enter remittance advices that you receive from your customers in the system. For each payment initiated by a customer, you can receive a remittance advice from the respective customer or supplier. However, it is more usual that the customer sends you the remittance advice, especially for payments made by incoming check or bank transfer. You can create remittance advices in the Payment Management work center under Remittance Advices.
Prerequisites
You have received a remittance advice from your customer. This can be in written form or made by a telephone call.
Procedure
1. Go to the Remittance Advices view and choose New Remittance Advice.
On the New Remittance Advice screen, enter the relevant data in the mandatory fields Company, Payer/Payee ID, Payment Amount, and Advice Date. Enter further information as required. If the remittance advice refers to an outgoing payment that a customer or supplier initiates on behalf of your company, such as a direct debit, select the Debit Advice checkbox. Under Payer Data in the Payer/Payee ID field, enter the name of the payer or payee and all the available bank details. If you know the account to which the payment is to be made, enter the appropriate details. Usually the payer is the customer who pays your company. It is also possible for payments to be made by a third party on behalf of the customer. 2. Under Open Items, select all open items relevant for payment by setting the Matched indicator. If an explanation is provided or needs to be provided for a particular item, you can add this by clicking View All and entering the corresponding text in the Memo Line field. If the entries are correct, click Release . Once a remittance advice has been released, it can not be deleted but only reversed. To do this, click Reverse .
Result
The new remittance advice is saved in the system. In the Payment Clearing view of the Receivables or Payables work center, you can see a new entry with the status Advised. The open items selected in the remittance advice now have a new clearing ID. Once the payment is made or confirmed on the bank statement, the remittance advice is included in the automatic payment clearing process. This means that the payment is used to clear the open invoice automatically using the information contained in the remittance advice, thereby eliminating any manual work. Once a remittance advice has been confirmed on a bank statement, it is no longer possible for it to be reversed.
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Example
Mr Weaver receives a remittance advice from a customer, which informs the company Akron about a payment that will be made by bank transfer to a bank account held by the company. He enters the payment and bank details from the remittance advice, selects the open invoices to be paid, and then releases the advice in the system. Once the payment has been made and its receipt confirmed by Akron when the amount is displayed on its bank statement, the remittance advice information and the bank statement are used to clear the open invoices paid in the bank transfer.
5.7 Periodic Tasks View

5.7.1 Quick Guide for Payment Media Runs
In the Payment Media Runs subview, you can perform automatic runs, which generate payment media for bank transfers, direct debits, checks, and bills of exchange. You can view recurring payment media runs as well as payment media runs that were scheduled for a particular date. You can edit existing payment media runs and reschedule them. You can also display available runs and check the application logs of runs that have already been performed. You can access this view from the Payment Management work center under Periodic Tasks.

Tasks Create a Payment Media Run

Activate the Payment Media Run

1. In the Periodic Tasks view in the Payment Media Runs subview, select a payment media run with the status In Preparation and click Edit .
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2. In the Payment Media Run: <ID> editor, you can check the available data and make any necessary changes. If you make any data changes, make sure you then Save . 3. Click Activate . You can also perform this step when you create a payment media run. It is then not necessary to perform a separate activation step. Note that you cannot make any changes to an existing run after it has been activated.
Schedule a Payment Media Run

1. In the Periodic Tasks view in the Payment Media Runs subview, select a payment media run with the status Active and click Schedule . The Schedule Job editor appears. 2. If you want to start a payment media run immediately and do not intend to repeat the run, click Start Immediately . Alternatively, you can specify a start date and time or arrange for it to run after a specific job. If you want to schedule the payment media run periodically, specify in addition to the execution date when the payment media run should be repeated, for example, daily or weekly. 3. Click Save . You can also perform this step when you create a payment media run, once you have saved and activated it. It is then not necessary to perform a separate scheduling step. You can reschedule an active run at any time or change its scheduling parameters.

1. In the Periodic Tasks view in the Payment Media Runs subview, select the payment media run you require and click View Jobs . The Job Monitor window appears. 2. You can check which runs are scheduled and change or cancel runs if required. If you want to change the execution date of a job, select the appropriate job and click Reschedule . If you want to cancel a job that has already been scheduled, click Cancel Job .
Display Execution Details

1. If you want to view the details of runs that have already been executed, first go to the Periodic Tasks view and Payment Media Runs subview. Here you can select the appropriate payment media run and check the details in the Execution Details section. You can display when the run was executed and the user who created it. The execution status is also displayed, such as Finished. 2. If you want to view the log, you can display it from the Application Log ID column. Here you can check the results of the run, such as whether payment media were created and if so, which media were created.
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5.7.2 Create a Payment Media Run Overview

In the Payment Media Runs subview, you can create payment media on paper or as files for data media exchange. You can access this subview from the Payment Management work center under Periodic Tasks.
Prerequisites
In the Payables or Receivables work centers, you have finished processing the payment proposal and have performed the payment run.
Procedure
1. In the Periodic Tasks view in the Payment Media Runs subview, choose New Payment Media Run. 2. In the New Payment Media Run editor, specify the payments you want to make and the criteria you want to apply when you perform the payment media run. Make entries in the following mandatory fields:

Company ID Payment Media Types For each run, you can select only one payment medium type (such as Including Outgoing Check). Format Select the format that corresponds with the selected payment medium (for example, check).
Additional selection criteria that you might want to include, are:
Customer / Supplier from / to You can define a value range, which enables you to select multiple customers or suppliers for a payment media run. If you do not make a selection here, the system includes in the run all the customers or suppliers entered in the system. Payment Execution Date from / to You can define a value range, which enables you to specify a payment processing period for a payment media run. If you do not specify anything here, the run is performed independently of the date. Including Payment Advice You can set this indicator if you want to generate payment advices during the run.
3. Click Save .
Result
You have created a payment media run that can now be activated and performed immediately or scheduled for a later date. If you have only saved a payment media run and not yet activated it, you can still make changes to it.
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5.7.3 Quick Guide for Payment Deposit Runs

In the Payment Deposit Runs subview, you can perform automatic runs, which generate payment deposits for bills of exchange. You can view recurring payment deposit runs as well as payment deposit runs that were scheduled for a future date. You can edit existing payment deposit runs and reschedule them. You can also display available runs and check the application logs of runs that have already been performed. During a payment deposit run, the system looks for due bills of exchange so that the deposit can be created and sent to the respective bank. You can access this view from the Payment Management work center under Periodic Tasks.

Tasks Create a Payment Deposit Run

1. In the Periodic Tasks view in the Payment Deposit Runs subview, choose Payment Deposit Run. New
2. In the New Payment Deposit editor, enter your company ID. If you want to use a specific bill of exchange storage in the run, enter the appropriate ID. You can also make additional field entries for the Currency or Bank Account ID. 3. Click Save . If you close the payment deposit run without activating it, you can still display it again and edit it at any time.
Activate the Payment Deposit Run

1. In the Periodic Tasks view in the Payment Deposits Runs subview, select a payment deposit run with the status In Preparation and click Edit . 2. In the Payment Deposit: <ID> editor, you can check the available data and make any necessary changes. If you make any data changes, make sure you then click Save . 3. Click Activate .
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Schedule a Payment Deposit Run

1. In the Periodic Tasks view in the Payment Deposits Runs subview, select a payment deposit run with the status Active and click Schedule . The Schedule Job editor appears. 2. If you want to start a payment deposit run immediately and do not intend to repeat the run, click Start Immediately. Alternatively, you can specify a start date and time or arrange for it to run after a specific job. If you want to schedule the payment deposit run periodically, specify in addition to the execution date when the payment deposit run should be repeated, for example, daily or weekly. 3. Click Save .

1. In the Periodic Tasks view in the Payment Deposit Runs subview, select the payment deposit run you require and click View Jobs . The Job Monitor window appears. 2. You can check which runs are scheduled and change or cancel runs if required. If you want to change the execution date of a job, select the appropriate job and click Reschedule . If you want to cancel a job that has already been scheduled, click Cancel Job .

1. If you want to view the details of runs that have already been executed, first go to the Periodic Tasks view and Payment Deposit Runs subview. Here you can select the appropriate payment deposit run and check the details in the Execution Details section. You can display when the run was executed and the user who created it. The execution status is also displayed, such as Finished. 2. To view the log, click Display Log . Here you can check the results of the run, such as whether payment deposits were created and if so, which deposits were created.
5.7.4 Quick Guide for Credit Card Settlement Runs

You can create automatic credit card settlement runs in the Credit Card Settlement Runs subview. In this way, credit card payments can be grouped together in one settlement and in a file. This payment order file can then be sent to the clearing house (also referred to as acquirer). You can view recurring credit card settlement runs as well as runs that were scheduled for a particular date. You can edit existing credit card settlement runs and reschedule them. You can also display available runs and check the application logs of runs that have already been performed. You can access the Credit Card Settlement Runs subview from the Payment Management work center under in the Periodic Tasks.

A Mass Data Run (MDR) is the automatic mass processing of a task or a business transaction. MDRs enable mass processing of business data and are used in business processes, for example, invoice runs, payment authorization runs,
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or balance confirmation runs. When a user schedules an MDR the system represents it as a background job. During scoping, it is possible to provide default variants of the MDRs. MDRs are created and maintained in the work centers. Using the Job Scheduler, users schedule the run to execute once or regularly at specified times. In the Background Jobs view of theApplication and User Management work center, key users can monitor and reschedule MDR jobs that are created by users in other work centers. For more information, see Mass Data Runs.
Tasks Create a Credit Card Settlement Run

1. In the Periodic Tasks view in the Credit Card Settlement Runs subview, choose Credit Card Settlement Run. New
2. On the New Credit Card Settlement Run screen, enter your company ID. If you only want to include one particular type of credit card in the run, for example, select this from the dropdown list. Additional selection criteria that you might want to include, are: Customer From / To You can define a value range, which enables you to select multiple customers or suppliers for a credit card settlement run. If you do not make a selection here, the system includes in the run all the customers or suppliers entered in the system.
Payment Execution Date You can specify a particular payment execution date for the credit card settlement run. If you do not specify anything here, the run is performed independently of the date.
3. Click Save . If you close the credit card settlement run without activating it, you can still display it again and edit it at any time.
Activate a Credit Card Settlement Run

1. In the Periodic Tasks view in the Credit Card Settlement Runs subview, select a credit card settlement run with the status In Preparation and click Edit . 2. On the Credit Card Settlement Run: <ID> screen, you can check the available data and make any necessary changes. If you make any data changes, make sure you then click Save . 3. Click Activate .
Schedule a Credit Card Settlement Run

1. In the Periodic Tasks view in the Credit Card Settlement Runs subview, select a credit card settlement run with the status Active and click Schedule . The Schedule Job screen appears. 2. If you want to start a credit card settlement run immediately and do not intend to repeat the run, select Start Immediately . Alternatively, you can specify a start date and time or arrange for it to run after a specific job. If you want to schedule the credit card settlement run periodically, specify in addition to the execution date when the credit card settlement run should be repeated, for example, daily or weekly.
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3. Click Save .

1. In the Periodic Tasks view in the Credit Card Settlement Runs subview, select the credit card settlement run that you want to view and click View Jobs . The Job Monitor window appears. 2. You can check which runs are scheduled and change or cancel runs if required. If you want to change the execution date of a job, select the appropriate job and click Reschedule . If you want to cancel a job that has already been scheduled, click Cancel Job .

1. If you want to view the details of runs that have already been executed, first go to the Periodic Tasks view and Credit Card Settlement Runs subview. Here you can select the appropriate credit card settlement run and check the details in the Execution Details section. You can display when the run was executed and the user who created it. The execution status is also displayed, such as Finished. 2. If you want to view the log, you can display it from the Application Log ID column. Here you can check the results of the run, such as whether clearing house payment orders were created and if so, which orders were created.
5.7.5 Quick Guide for Foreign Currency Remeasurement (Cash)

You use foreign currency remeasurement to convert the balances of cash ledger accounts from foreign currencies into the company currency on a specific key date. This closing activity is relevant for companies for which gains and losses, resulting from exchange rate fluctuation, are displayed on the cash ledger accounts in foreign currencies. At the time when the amounts of these balances originated, they were converted into the company currency using the exchange rate valid at that time. On the day when the balance sheet is created, a different exchange rate usually applies, and the balances therefore have to be revaluated. The remeasurement can be repeated as often as required until the receivable has been cleared or written off. You can access the Foreign Currency Remeasurement for Cash subview from the Payment Management work center under Periodic Tasks.

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Before you can create your closing reports, you first need to perform some preparatory tasks. The system supports you in this process. For more information, see Closing Activities - Year-End Closing.

The current exchange rates need to have been entered in the system. For more information, see Exchange Rates. Using account determination, you need to have defined and set up in configuration the accounts that you want to remeasure. For more information, see Business Configuration of Account Determination for a Business Transaction. You need to have defined how the system is to valuate and post exchange rate differences. For this, you need to have assigned the appropriate set of books to the foreign currency remeasurement method. For more information, see Foreign Currency Remeasurement Method.
Perform Foreign Currency Remeasurement for Cash

1. To create a new foreign currency remeasurement run, click New Remeasurement for Cash Run. , then Foreign Currency
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Test Run To perform the foreign currency remeasurement run as a test run, set the Test Run indicator. The system previews the results of the test run but does not make any postings. The postings are only simulated. You can only delete foreign currency remeasurement runs that you either scheduled or performed as a test run. To delete a test run, select a run you want to delete and click Delete .
Set of Books You can perform the remeasurement for a single set of books or for all sets of books. If you use multiple sets of books with different fiscal year variants, you should ideally perform the remeasurement separately for each set of books. The system determines the key date on the basis of the fiscal year variant of the set of books. Currency You can restrict foreign currency remeasurement to cash ledger accounts in specific currencies. Closing Step You select the closing step that you want the system to use when making the postings on the key date to the corresponding accounting period. This accounting period must be open for the closing step that you have selected. For more information, see Closing Steps. Period / Year You select the period and year for which you want to perform foreign currency remeasurement.
3. Scheduling You can either perform foreign currency remeasurement immediately or schedule it to occur later: To perform foreign currency remeasurement immediately, click Start Immediately . You have to wait until the foreground job finishes before you can continue with your work. This may take several minutes depending upon the data volume, which can cause the screen to time out. In such a case, you can go to the main screen for the run and refresh the data. When the run status changes to Finished, click View to view the logs. Alternatively, you can clickLog Result in the Details section of a finished run.
To schedule foreign currency remeasurement for a subsequent point in time, click Schedule and specify the time when the system will perform remeasurement. If you leave the Date and Time field empty, the run starts immediately. You can continue with your work while the system executes the run as a background job.
You can view scheduled foreign currency remeasurement runs and their respective times in the subview Foreign Currency Remeasurement under Jobs .
Display and Check Log for Foreign Currency Remeasurement

1. Display Log
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If you have performed foreign currency remeasurement immediately, the system issues a status message. To display a list of the logs, click Display Log in the status message. When you have scheduled foreign currency remeasurement, you can display the list of logs in the Foreign Currency Remeasurement subview after the foreign currency remeasurement has been performed. To do this, choose the relevant foreign currency remeasurement. 2. Check the Log The log contains the following information:
General
Data Selection
Messages
Postings
Shows all the account movements and journal entries that the system posted for the key date valuation and the valuation reversal.
Remeasured Balances
Shows for each remeasured account all the documents with their source document ID, historical value, and key date value, as well as gains and losses. You can also view the term over which the valuation was performed.
Shows for each remeasured conciliation account the documents that were subject to errors during processing, for example, because of missing account determination. To verify whether a run has been completed successfully, you can run the following checks:
Log You find a log for a run in the corresponding subview. Each run has a status (Information, Error). To display the details of a log, select the relevant run and click Display . If errors occur during a run, you need to resolve them. You can find information on the errors on the Messages tab. Once you have resolved the errors, start the run again. The system repeats the postings that could not be made in the first run. Job Monitor If a run has not been completed successfully and you cannot find and resolve the cause, you can display the technical details relating to the run in the Job Monitor. Select the relevant run and click Display Jobs . If a job finds errors, contact your system administrator.
5.7.6 Quick Guide for Direct Debit Rejection Runs
This document contains text that is relevant for Switzerland. To ensure that the system displays the correct text, select Personalize My Settings . Select Onscreen Help and, under Country, choose Switzerland. Save your settings and logout to ensure these changes are made.
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5.8 Reports
5.8.1 Payment Statistics - Customers Overview
The report provides an overview of the payment behavior of customers towards your company for a specific period. Canceled items are not included.

Before running the report, you can specify the data that you want to see by making value selections for variables. You must make a value selection for all mandatory variables. In the system, mandatory variables are indicated by an asterisk (*). Additional information is available for the following selected variable:
Proposed Posting Date The system takes the previous two weeks as the default value for the documents entered.

This report displays the following: the number of days from the invoice receipt until payment (accounts receivable), payment amount, average number of days until the net due date, number of overdue days in the specified period in percent, and the permitted, claimed, and unclaimed cash discount. Furthermore, the report specifies the highest dunning level for each customer and the average dunning level that was issued prior to the customer clearing the invoice. The data in this report is displayed in table format. You have the following options for analyzing the report:

You can restrict the data that is displayed. To do this, choose Filter. To further analyze data in this report, you can drag characteristics to rows and columns. From each customer displayed, you can drill down to the relevant details. To do this, select the appropriate value and open the corresponding menu.
See Also

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5.8.2 Checkbook Register Overview

The report displays all check numbers within a check lot that have already been used for outgoing checks or are not available anymore because of other reasons.

Before running the report, you specify the data you want to see by making value selections for variables. Additional information is available for the following selected variables:
Company ID You can restrict the display to specific companies if you only want to see the check information concerning the respective companies. You can use the input help to select one or more companies. Check Lot You can restrict the display to specific check lots assigned to a certain bank. Status You can restrict the display to checks with a specific status. This status indicates, for example, whether a check has already been cashed by the payee. The following statuses are available: Ready for Transfer The check has been created but not been printed yet.
In Transfer The check has been printed. Although the check has been issued, it can still be voided, for example if had been damaged before it could be sent to the payee. Canceled The complete check payment has been canceled. In this case no new check number exists as a replacement. Void The check has been voided either before or after assigning a payment to the check and, if the check was voided after issuing, a new check number has been used. Confirmed This status means that the check has been cashed by the payee. The outgoing payment has been confirmed by a bank statement.

This report displays all check numbers already used as well as the information relevant to these checks, such as voiding dates, void reasons, or check statuses. You have the following options for analyzing the report:

You can restrict the data that is displayed. To do this, click on the filter symbol and select the required values. To further analyze data in this report, you can drag characteristics to rows and columns. From this report, you can navigate to details, such as company or bank master data or to the check screen.
Additional information is available for the following characteristics:

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Original Check Number Shows the number of the original check, in case it has been voided and replaced be a new check number. Otherwise, no value is displayed in this field. Migration Indicator Shows whether a check has been transferred from a legacy system. If no migration has taken place, no value is displayed in this field. Payment Amount Shows the payment amount for the corresponding check, irrespective of whether it has been voided or canceled at some point in the payment process. Only if you have voided a check already in the check lot, 0,00 is displayed as payment amount in this field.
See Also
Check Lots and Check Numbers for Outgoing Checks [257]
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6 Liquidity Management
6.1.1 Cash Position Overview
The cash position displays actual bank balance and transaction details as provided by prior-day bank statements. The cash position reflects the short term liquidity status of the company. The system provides you with an integrated, overview of your cash position in the Liquidity Management work center.
Features
The system automatically calculates the cash position for your company. This information is displayed in the Cash Position view of the Liquidity Management work center. You can drilldown from cash position line items the Cash Position Transaction Details report by choosing a transaction source, for example Customer Receipts, and choosing Go To, then Transaction Details from the context menu. The system also allows you to adjust your cash position dynamically during the course of the business day. The system partially automates many of the processes for managing your liquidity as outlined below;
The bank-to-bank transfer feature allows you to initiate fund transfers between company accounts. This quick activity is accessed from the Common Tasks pane of the Liquidity Managementwork center. Alternatively you can create a new bank-to-bank transfer in the Payment Monitor work center view. The bank transfer feature allows you to initiate payments to third party bank accounts, to pay outstanding bills or expenses. This quick activity is also accessed from the Common Tasks pane of the Liquidity Management work center. A new outgoing bank transfer can also be created in the Payment Monitor work center view. You may receive notice of intra-day payment activity in the form of a bank payment advice. The system allows you to record these, so that they are reflected in the cash position, with the New Bank Payment Advices quick activity. This is also opened from the Common Tasks pane of the Liquidity Management work center.
The system also allows you to view the cash position from a number of different perspectives. You can display the total transaction amounts for each payment method grouped by bank. To do so, choose the Show arrow, then choose Cash Position Payment Method. You can also view the cash position grouped by transaction source. This shows total transaction amounts for each transaction source. To do so choose the Show arrow, then choose Cash Position Transaction Source. It is important that you refresh the cash position after you transfer funds or create a new bank payment advice to ensure that the cash position displayed reflects your changes. To do so, choose Option , then choose Refresh.
Example
Daniel Dough is the cash manager for Akron Heating Inc. He wishes to check the cash position for the current day. He opens the Liquidity Managementwork center, Cash Position work center view.
SAP Business ByDesign FP3.5 Liquidity Management
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He can see that there is a cash deficit of 10,000 Euro in the companys Bank of America account. He wishes to transfer this amount, from a company bank account with a surplus, to the Bank of America account to avoid paying the debit interest on the deficit. He selects New Bank-to-Bank Transfer from the Common Tasks pane. He completes the quick activity and releases the transfer. He creates a payment file and saves it to the appropriate location for processing by the bank. Daniel also wishes to pay an outstanding expense with bank transfer. To do so, he selects New Bank Transfer from the Common Tasks pane. He completes the quick activity and releases the transfer. He creates a payment file and saves it to the appropriate location for processing by the bank. Daniel receives a phone call notifying him of an intraday payment. He wishes to see this incoming payment captured by the cash position. He opens the New Bank Payment Advices quick activity from the Common Tasks pane. He completes the quick activity and saves, then he releases the document. Finally, Daniel now wishes to view his changes in the cash position. He opens the Cash Position view as before. Daniel cannot see his changes reflected in the cash position immediately. He refreshes the screen and then sees his changes reflected in the cash position. He then drills down to view the transaction details report for Wires In for the Bank of America.
6.1.2 Bank Directory Overview

You can use the Bank Directory to store all the bank information necessary for your daily business operations in a central repository. This directory is fully integrated within the system and is used by the system to validate bank details included in payment information and validate bank data in business partner data. You can access the bank directory in the Liquidity Management work center, Master Data Bank Directory view.
Creating the Bank Directory

You have the following options for creating your bank directory:

You can create bank directory entries manually You can upload a bank directory from a third-party provider You can use a migration tool to create entries from a data spreadsheet
Manually Create a Bank Directory Entry You can manually create a bank directory entry at any time in the Master Data Bank Directory information about how to complete this task, see the Master Data Quick Guide [276]. Upload a Bank Directory File You can acquire a bank directory from a third-party provider, such as Accuity or the Deutsche Bundesbank (German Central Bank), and upload it to SAP Business ByDesign. You can acquire the bank directory from other sources, for example from many state-controlled banks, but you must edit the file by ordering the bank data to match the specific format used by SAP Business ByDesign. For information about uploading a file from a provider other than Accuity or the Deutsche Bundesbank, see SAP Format for Bank Directory Upload. For information about uploading a file from Six Interbank Clearing, see Bank Directory Upload for Six Interbank Clearing Switzerland [252] view. For
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While many state-controlled banks offer bank directory files free of charge, other third-party providers may charge a fee for this service. For more information on partner solutions and details about acquiring bank directory files from Accuity, refer to the Business ByDesign Business Center. You can upload the bank directory file for processing, in the Master Data about how to complete this task, see the Master Data Quick Guide [276]. Bank Directory view. For information
After the processing of the file is finished, the bank data contained in the file is displayed in the Bank Directory with a status of Active. To view the bank directory file and view the overall status of the processing of the file, click File Upload History in the Bank Directory view. If the overall status is red, you can correct any errors within the file and restart the file processing. Migrate Bank Directory Data You also have the option to migrate bank data into your system using a migration tool available during an implementation project in the activity list in the Business Configuration work center. Note that data migration requires special user authorizations. Your key user can grant the required authorizations using the Application and User Management work center.
Updating the Bank Directory

Bank directory information, such as addresses, contact details, and routing information can become out of date over time. By updating your bank directory, your company can avoid any problems associated with using incorrect or outdated information. You can keep your bank directory up to date by regularly uploading bank directory files from your provider of choice. You can update and overwrite all existing bank directory entries, including those from other providers and entries created manually, by selecting the Overwrite Existing Entries checkbox. Bank directory entries from a provider are always overwritten when you upload a bank directory file from that same provider.
Editing Bank Directory Entries

To edit a bank directory entry, open the Bank Directory view. Select the entry that you want to edit and click Edit . If you are using the Manage and Control Projects implementation focus, you can access your bank directory from the Business Partner Data work center. The editor is explained below.
Bank Data Enter the contact details for the bank in this section. You can enter the time period that the entry is valid for. You can also choose the appropriate check digit calculation method from the list. This list is maintained as bank directory master data. SWIFT Code Under Bank Control Data, you enter the SWIFT, or alternatively the Bank Identifier Code (BIC), and select the bank group that the bank belongs to. The SWIFT or BIC code is a unique identifier used to identify banks, most often in international wire transfers and other transactions. If you have accounts with several affiliated banks or several subsidiaries of the same bank, these banks may share the same SWIFT or BIC code. You click Identification via SWIFT/BIC in two situations: If the bank directory entry is the only bank directory entry that uses this standard ID for automatic payments. That is, where this bank directory entry is the only entry for a particular bank and its SWIFT or BIC identifier.
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There may be more than one bank directory entry using the same SWIFT or BIC identifier. In this situation, the system is unable to identify the appropriate bank directory entry to use. Clicking Identification via SWIFT/BIC identifies the particular entry as the leading entry for this SWIFT or BIC identifier.
Click Identification via SWIFT/BIC in both situations to specify this bank directory entry as the leading bank. The SWIFT or BIC is a unique identifier used by banks to identify themselves in transactions. The system will now reference this bank directory entry for every transaction that uses the SWIFT or BIC identifier
National Bank Codes The national bank code details are used to identify the bank directory entry. You enter the national bank code details in the National Bank Code table cell. You can maintain multiple national bank code details for a single bank directory entry. To add national bank code details click Add Row. Generally, the national bank code type is entered automatically after you select the bank country. However, in certain cases, you may enter the national bank code and national bank code type manually. For example, in the United States, banks use many national bank codes and bank code types. Thus it is possible to manually enter the national bank code and bank code type for banks in the United States. Click Default to select the national bank code and national bank code type displayed as the default selection to be used for this bank directory entry. The selected national bank code details will now be used for automatic and electronic payments involving this entry. You click the Identification via National Bank Code check box in two situations: If the bank directory entry is the only bank directory entry that uses this national bank code for automatic payments. That is, where this bank directory entry is the only entry for a particular bank and its national bank code.
There may be multiple bank directory entries that use the same national bank code. In this situation, the system is unable to identify the appropriate bank directory entry to use in automatic payments. Clicking the checkbox identifies the particular entry as the leading entry for this national bank code.
Click Identification via National Bank Code in both situations to specify this bank directory entry as the leading bank. The national bank code is a unique identifier used by banks to identify themselves in domestic transactions. The system will now reference this bank directory entry for every transaction using the national bank code.
Assigned Branches You enter the contact details and assign a Branch Name for each branch of the bank directory entry in the Assigned Branches tab. The Branch ID is entered automatically by the system. To assign more than one branch to an entry, click Add Row and enter the details on the new row. If a bank directory entry is no longer relevant you can set the status to obsolete. Select the relevant entry, click Actions , then Set to Obsolete.
6.1.3 Bank Directory Upload for Six Interbank Clearing Switzerland
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6.1.4 Bank Statements Overview

Getting up-to-date information about the status of your bank accounts is an important element of effective cash-flow management. To get an accurate picture of the status of your bank accounts, you need information about your current bank balance. Your bank provides you with this information via bank statements in either electronic or physical (paper) formats. The system supports both bank statement formats. Paper bank statements are entered and updated in the system manually in the Bank Statements view of the Liquidity Management work center. The system displays bank statements that have been entered in the system in the same view. You can upload electronic bank statement files in the Inbound Files subview of the File Management view of the same work center.
Business Configuration
The following options are available in the Activity List view of the Business Configuration work center and are relevant for bank statements.
Import Formats for Bank Statements You can maintain the available file formats for bank statements and assign these to particular company bank accounts, banks or countries in the Business Configuration work center in the Activity List view. In the Fine Tune step, choose Cash Flow Management > Import Formats for Bank Statements. For more information see Electronic Bank Statement File Formats [274] Release Bank Statements If you require bank statements to be approved before they are released, you can do so in the Business Configuration work center in the Activity List view. If no assignment is configured, the system automatically selects a country dependent format. In the Fine Tune step, choose Cash Flow Management > Release Bank Statements. You can maintain the setting individually for each company bank account. The approval check is only applied to bank statements that have been uploaded as electronic bank statement files. If you do not complete the activity, the approval check is activated by default.
Features
Bank statements are entered and updated in the system in the Bank Reporting view in the Liquidity Management work center. The system displays bank statements that have been entered in the system in the Bank Statements view. In the Show list, choose Released to see all the bank statements that have been entered and successfully released. Statements that have been released cannot be deleted. To be able to display bank statements for the current day, choose Todays Bank Statements. The list displayed provides an overview of work completed on the current day. This data is not part of the list This Months Bank Statements. After you release a bank statement, the system matches the bank statement line items to open payment allocations (by automatically creating a payment allocation for each bank statement item) and tries to release these payment allocations. The status of this bank statement processing displays in the Bank statement processing status field. This can have the following status Not Started, In Process, Finished and Finished with Errors. The Bank statement processing finished with errors field indicates whether any technical errors occur during bank statement processing.
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If the processing does not display a status of Finished or if the bank statement processing finished with errors , you can choose Restart Bank Statement Processing to start the processing again. You can also release the payment allocations individually in the Payment Management work center. If the payment allocation cannot be released for business (non-technical) reasons, for example an incorrect posting date or incomplete business partner data, you can process the individual payment allocation tasks in the Payment Management work center. If you choose In Preparation, the bank statements have been entered and saved but not released are displayed. If you choose Cancelled, the bank statements that have been reversed are displayed. If you choose Void, the bank statements that have been rejected are displayed.
Importing and Editing Bank Statements

The system supports the manual and electronic import of both bank statements. However, the process for uploading the statement into the system is different for both;
Manual import of bank statement To manually enter the information from a paper bank statement in the Bank Statement New , then Bank Statement. Electronic import of bank statement To import an electronic bank statement file in the Inbound Files subview, choose New
subview, choose
, then Inbound File.
You can also edit existing bank statements (that have been entered manually and have a status of In Preparation) in the Bank Statements view. Select the bank statement that you wish to edit and choose Edit . You cannot edit automatically created bank statements, you can only approve or reject these statements.
Bank Statement Integration

The system saves bank account statements and then posts them in general ledger according to the account determination rules set during business configuration. Bank statement processing relies on a structure of clearing accounts for each bank account in the system. The first posting derives automatically from due items processing and payment processing; the second is made automatically by the bank statement. The bank statement is posted to the relevant bank account to offset the clearing account posting. This process is illustrated best by the most usual business example, a bank transfer;
A completed and released bank transfer, (with a status of In Preparation), triggers the creation of a posting on the bank clearing account. You receive a bank statement from your bank. The bank transfer is recorded as a payment line item in the bank statement. When this bank statement is uploaded and released this creates a posting in the bank account. This posting offsets the clearing account posting. The status of the bank transfer in the system changes from In Preparation to Confirmed.
There are some exceptions to this process, such as bank fees and interest. Bank charges and interest are supported. However, manual payment allocation may be required, depending on where the line items are included on the bank statement. For example, you may receive a bank statement containing bank charges or interest line items that are included as separate items in the statement, you need to perform manual payment allocation to assign these to the correct general ledger bank account.
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For more information see Payment Allocation and Clearing [188] .
Example
Businesses tend to receive their bank statements as either paper or an electronic file but not both. However, both are mentioned below for the purpose of the example. Daniel Dough is the cash manager for Akron Heating Inc. He receives a bank statement in the post. He opens the Liquidity Management work center, Bank Statements view. He chooses New , then Bank Statement. The Create Bank Statement guided activity appears. He manually enters the bank statement details and saves. Daniel also receives an electronic bank statement via Akrons banking software. He opens the Inbound Files subview. He chooses New screen opens. He completes the quick activity and saves. The bank statements are saved and released. , then Inbound File. The New Inbound File quick activity
Additional Information on Processing Bank Statements

After bank statements have been confirmed or released, the system then posts the relevant items. If the items confirm known transactions in the system (for example, cashing an existing outgoing check, confirming a bank transfer or the credit memo of a check deposit), these items are then displayed in the Payment Management work center in the Payment Monitor view in addition to the original payment. This means, for example, that the system displays both the item of the original outgoing check, with the status In Transfer, and the item with the payment confirmed by bank statement (the outgoing check with the status Confirmed.) Once the payment has been posted completely, the system automatically allocates both items. (This process is started automatically each minute.) After the items have been allocated successfully, only one payment is displayed in the payment monitor in this case, the outgoing check with the status "Confirmed." You can track the processing status of the bank statement by accessing the Bank Statements view and selecting the relevant bank statement. In the lower area of the screen, under Details, the Status of Bank Statement Processing field shows the following phases:

Not Started In Process Completed
Depending on the volume of the bank statement, processing may take some time. Once the allocation of the bank statement items has been completed and the status "Completed" displayed, only the payment with the status "Confirmed" can be viewed in the payment monitor. If technical problems cause processing to be terminated, you can restart the process using Restart Bank Statement Processing.
6.1.5 Bank Transfers Overview

You can use bank transfers to make both automatic and manual outgoing payments. There are two types of bank transfer: bank transfers, which are used to make payments from a company account to third-party accounts; and bankto-bank transfers, which are used to transfer funds between company bank accounts. These are used mainly for transfers relating to liquidity management.
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The following options are available in the Activity List view of the Business Configuration work center and are relevant for bank transfers;
Outgoing Bank Transfers You can review and change some of the predefined settings for outgoing bank transfers in the Business Configuration work center in the Activity List view. In the Fine Tune step, choose Cash Flow Management > Outgoing Bank Transfers you can adjust the settings for the following: Country Groups; A country group exists where payments between members are considered domestic payments for example the European Union. You can also create your own country groups. Payment Formats; Shows the relationship between the internal and external codes used to convey payment information between the system and the bank for each available payment format. These formats are standardized so you should only need to change these settings if your company has a specialized arrangement with the bank. Payment Correspondence Profiles; You can choose what fields to include in your correspondence forms for each payment correspondence profile. Outgoing Wire Transfers You can review and change the same settings for outgoing wire transfers in the Business Configuration work center in the Activity List view. In the Fine Tune step, choose Cash Flow Management > Outgoing Wire Transfers.
Features
Bank transfers and bank-to-bank transfers can both be created from anywhere in the Liquidity Management work center from the Common Tasks pane. You can also create a new outgoing bank or bank-to-bank transfer in the Payment Monitor view of the Liquidity Management and Payment Management work centers. New bank transfers may also be initiated in the Payables and Receivables work centers manually or automatically as part of a manual or automatic payment.
Payment File Integration

A bank transfer or a bank-to-bank transfer is not complete until the payment information contained in the transfer is made available to the bank or banking software for collection and processing. A new file in the appropriate file format must be created to complete the transfer. This file is then saved to a designated location outside the system for collection by the bank or banking software. The file can be created either automatically or manually. The payment file media run will create the file automatically. You can create the payment file created manually in the Outbound Files subview of the File Management work center view by selecting the appropriate transfer and choosing Create Payment File .
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6.1.6 Bank Payment Advice Overview

A bank payment advice contains items in the cash position that are not captured automatically by the integrated repositories. The bank payment advice acts like a memo, ensuring that the item is reflected in the current cash position. You should replace the bank payment advice with a transaction record in the next bank statement. SAP supports a number of national and international file formats (for example, format V11 in Switzerland or CREMUL in Austria) for bank payment advices. You can view the details for every bank payment advice entered in the system in the Bank Payment Advices view of the Liquidity Management work center. Cash Position and Liquidity Forecast Integration The new bank payment advice is automatically captured by the cash position and liquidity forecast. However, it is visible only after you refresh the Cash Position view. In the Cash Position view, click the Refresh button to refresh the cash position. You can view all existing bank payment advises for your company grouped according to their status in the Bank Payment Advices view in the Liquidity Management work center. From here you can release bank payment advises that have a status of In Preparation. You can also reverse (cancel) and edit existing payment advises. Bank payment advises with a status of Released are the only advices captured by the cash position.
Example
Daniel Dough is the cash manager for Akron Heating Inc. Daniel has received a new bank payment advice in the post detailing a future payment from a customers bank. He wishes to capture this in his cash position for the day. He opens the Liquidity Management work center. He chooses New Bank Payment Advices from the Common Tasks pane. He completes the quick activity and clicks Save. The bank payment advice must be released. Daniel opens the Bank Payment Advices subview. In the Show list, he chooses Bank Payment Advices In Preparation. He selects the relevant bank payment advice and clicks Release. Daniel now wishes to see the effect of the new bank payment advice on his cash position. He opens the Cash Position view and refreshes the screen. He can see his new bank payment advice captured by the cash position. Daniel then drills down to view the Cash Position Transaction Details report by right clicking on a transaction source, for example Customer Receipts, and selecting Go To, then Transaction Details from the context menu.
6.1.7 Check Lots and Check Numbers for Outgoing Checks
Check lots and the check number ranges are shown in the Liquidity Management work center under Data My Banks . Double-click on your bank, and select View All Bank Accounts
Master
Check Lots .
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Automatic Check Number Assignment

So that the system can automatically assign check numbers, you must have created a check lot for the appropriate bank account in the master data of the bank, and have set the indicator Used for Automatic Check Numbering. The automatic check number assignment assigns consecutive numbers to checks while skipping already used check numbers and recycling check numbers released by cancellations. The new check number is displayed in the check lot under Next Check.
Manual Check Number Assignment

If, however, you enter the check number manually, the system checks whether a check lot exists for the relevant bank account, and whether the number entered was not used yet. If this is the case, the system uses the check lot information in the check entered. If no check lot or appropriate check number in the check lot was found for the relevant bank account, the system generates a check without check lot assignment and displays an appropriate warning message.
Skip Next Check Number

If a check form becomes invalid before creating the check, you can skip the number displayed in the check lot under Next Check. To do this, you must first remove the invalid number from the check lot. Select the check lot and choose Void Unused Check. Enter the check number of the check to be voided, the void date, and void reason. The consecutive number is now displayed under Next Check.
Overview of Check Numbers Used

To get an overview of the check numbers already used, proceed as follows: 1. Go to the Payment Monitor view. 2. Enter the relevant bank account and the payment method Outgoing Check as the filter values. 3. Sort the check numbers in the column Reference Number.
Change Check Numbers Subsequently

You can subsequently change the check numbers of one or multiple checks at the same time. Before you can perform this action, the following prerequisites must be fulfilled:

The checks to be changed must belong to one check lot. The selected number range must be in the value range of the check lot. The selected check numbers must be consecutive numbers. The checks to be changed have the status Ready for Transfer, In Transfer, or Cancelled. The check lot is not be indicated as Blocked. If you specify a number range, the difference between the highest and lowest value must correspond to the number of checks to be changed.
To change check numbers, you first determine the next check number that has not been used. Under the Payment Monitor view, select the relevant checks using <Ctrl>+left mouse button and choose Actions for Checks Renumber . For one check, enter the lowest check number and for multiple checks, the check number range to be used. The renumbering means that the values under Current Check and Next Check are automatically updated in the check lot.
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Toggle Check Numbers

You can toggle the numbers of two checks within a check lot subsequently. Before you can perform these actions, the following prerequisites must be fulfilled:

The checks to be changed must belong to one check lot. The checks to be changed have the status Ready for Transfer, In Transfer, or Cancelled. The check lot is not be indicated as Blocked.
To toggle two check numbers in a check lot, select the relevant checks using <Ctrl>+left mouse button and choose Actions for Checks Toggle .
Split Check Lot

You can split a check lot subsequently. This is useful, for example, if you want to create a check lot for automatically created checks and a check lot for manually created checks. To do this, proceed as follows: 1. Go to 2. Go to Master Data My Banks and select the bank that you want to edit.
Bank Accounts
Check Lot .
3. Determine the next check number of the check lot to be split. 4. Select the row of the check lot to be split and choose Split Check Lot. 5. Enter a consecutive number and the first check number for the new check lot.
6.1.8 Monitoring Payment Allocation Processing Overview

After bank statements have been confirmed or released, the system then posts the items. If the items confirm known transactions in the system (for example, cashing an existing outgoing check, or confirming a bank transfer or the credit memo of a check deposit), these bank statement items are then also displayed in the Payment Monitor view until the payment allocation has been processed.. Once the payment has been posted completely, the system automatically allocates both itemsthe outgoing check, bank transfer, or check deposit and the bank statement item. (This process is started automatically each minute.) After the items have been allocated successfully, only one payment is displayed in the payment monitor in this case, the outgoing check with the status Confirmed. To track the payment allocation processing status of the bank statement, proceed as follows: 1. Go to the Liquidity Management work center, then choose the Bank Statements view. 2. Select the relevant bank statement. 3. In the lower area of the screen, under Details, the Status of Payment Allocation Processing field shows the following phases: Not Started

In Process Finished
Depending on the volume of the bank statement, processing may take some time. 4. Once the allocation of the bank statement items has been completed and the status Finished displayed, only the payment with the status Finished can be viewed in the payment monitor.
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To restart the process in case technical problems cause processing to be terminated, choose Restart Payment Allocation Processing .
6.1.9 Master Data

6.1.9.1 Clearing Houses and Clearing House Accounts Overview
A clearing house (also referred to as acquirer) is a financial institution or service provider that acts as a third party in the clearing of future payment contracts, for example credit card payments, for either the payer or payee or both. A bank may act as a clearing house. However, a clearing house does not necessarily have to be a bank. Clearing houses are maintained in the system in the Liquidity Management work center. Clearing house master data is maintained in the Clearing Houses subview of the Master Data work center view. Individual clearing house account data is maintained in the Clearing House Account subview, in the same work center view.
The following options are available in the Activity List view of the Business Configuration work center and are relevant for clearing houses;
Credit Card Types You can review and change predefined settings for the allowed credit card types, such as VISA or Diners Club in the Business Configuration work center in the Activity List view. In the Fine-Tune step, choose Cash Flow Management > Credit Card Types. You can also review and change the validity check for each credit card type here. Credit Card Authorization and Settlement You can review and change the authorization and settlement settings for credit cards in the Business Configuration work center in the Activity List view. In the Fine-Tune step, choose Cash Flow Management > Credit Card Authorization and Settlement. From here, you can edit the following settings: Credit Card Authorization Profiles Review and change the predefined credit card authorization profiles . You can also assign authorization profiles to your company.
Payment Authorization Threshold Profiles Review and change the payment authorization profiles. Payments below the specified amounts do not require authorization. You can also assign authorization profiles to your company. Credit Card Settlements Specify the settings for settling incoming credit card payments, such as single or batch settlement. You can also assign settlement profiles to your company.
Features
To create a new clearing house entry, open the Clearing Houses Enter the required data and click Save . subview and click New , then Clearing House.
To create a new clearing house account, open the Clearing House Accounts subview in the Master Data work center view and click New , then Clearing House Account. The New Clearing House Account screen displays.
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Enter the clearing house companys ID in the Clearing House ID field and enter the number used by the clearing house to identify your company in the Merchant ID field. You receive this ID from your credit card service provider. You select the company ID of the company that will use the account in the Company ID field. You can also enter the time period during which the account remains valid. There are also three tabs to be completed, explained below.
Account You enter an internal identifier in the Account Number field. This is used for information purposes only. You select the currency that the clearing house will use to report to your company in the Currency field. You must also select the bank account ID of the account the clearing house will make payments to. You select your chosen credit card service provider in the Payment Service Provider field, if applicable. Credit cards are the only supported payment card category.
Preferred Currency You select the currencies that you would like this clearing house account to process. If, for example, you enter EUR as a currency, then all credit card payments made in Euro will be processed by this account. If no currency is selected, the account will process credit card payments in all supported currencies. You may maintain multiple currencies for the same account. Credit Card Type You select the particular credit card types, such as VISA or Mastercard, that will be processed by the account in the Credit Card Type column. You enter the authorization validity period in the Authorization Validity Days column. Your credit card service provider will, in most cases, provide you with the number of days for which the authorization will remain valid. The service provider receives this information from the acquirer (clearing house) and communicates it to you. You then enter this information manually. The system automatically references the authorization validity date contained in an electronic authorization request. If the request does not contain this date, the system uses the authorization validity days entered by you to calculate the authorization validity date. In this case, the system automatically calculates the authorization validity date by summing the current date and the authorization validity days entered by you. If you do not enter anything in the Authorization Validity Days column, the system then uses the current date as the authorization validity date. The transaction will be processed in the system but the transaction will not be authorized, as the authorization period will be zero. You select the Default checkbox if you want to select this account as the exclusive processor for a particular credit card type. All credit card payments made using this credit card type will be processed by this account.
After you complete the activity, you must save and activate the account.
Example
Daniel Dough is the cash manager with Akron Heating Technologies Inc. The company has recently opened a new account with a new clearing house. He wishes to record this in the system. Daniel opens the Clearing Houses subview of the Master Data work center view in the Liquidity Management work center. He chooses New , then Clearing House. The New Clearing House screen opens. He enters the required data and clicks Save . Daniel now wishes to add the account details to the new clearing house. He opens the Clearing House Accounts subview. The New Clearing House Account screen opens. He enters the required data and saves his entries. Daniel now wishes to activate the account. He clicks Change Status, then Active. The new clearing house and clearing house account are now created in the system and are ready for use.
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6.1.9.2 Bank Directory Overview

You can use the Bank Directory to store all the bank information necessary for your daily business operations in a central repository. This directory is fully integrated within the system and is used by the system to validate bank details included in payment information and validate bank data in business partner data. You can access the bank directory in the Liquidity Management work center, Master Data Bank Directory view.
Creating the Bank Directory

You have the following options for creating your bank directory:

You can create bank directory entries manually You can upload a bank directory from a third-party provider You can use a migration tool to create entries from a data spreadsheet
Manually Create a Bank Directory Entry You can manually create a bank directory entry at any time in the Master Data Bank Directory information about how to complete this task, see the Master Data Quick Guide [276]. Upload a Bank Directory File You can acquire a bank directory from a third-party provider, such as Accuity or the Deutsche Bundesbank (German Central Bank), and upload it to SAP Business ByDesign. You can acquire the bank directory from other sources, for example from many state-controlled banks, but you must edit the file by ordering the bank data to match the specific format used by SAP Business ByDesign. For information about uploading a file from a provider other than Accuity or the Deutsche Bundesbank, see SAP Format for Bank Directory Upload. For information about uploading a file from Six Interbank Clearing, see Bank Directory Upload for Six Interbank Clearing Switzerland [252] While many state-controlled banks offer bank directory files free of charge, other third-party providers may charge a fee for this service. For more information on partner solutions and details about acquiring bank directory files from Accuity, refer to the Business ByDesign Business Center. You can upload the bank directory file for processing, in the Master Data about how to complete this task, see the Master Data Quick Guide [276]. Bank Directory view. For information view. For
After the processing of the file is finished, the bank data contained in the file is displayed in the Bank Directory with a status of Active. To view the bank directory file and view the overall status of the processing of the file, click File Upload History in the Bank Directory view. If the overall status is red, you can correct any errors within the file and restart the file processing. Migrate Bank Directory Data You also have the option to migrate bank data into your system using a migration tool available during an implementation project in the activity list in the Business Configuration work center. Note that data migration requires special user authorizations. Your key user can grant the required authorizations using the Application and User Management work center.
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Updating the Bank Directory

Bank directory information, such as addresses, contact details, and routing information can become out of date over time. By updating your bank directory, your company can avoid any problems associated with using incorrect or outdated information. You can keep your bank directory up to date by regularly uploading bank directory files from your provider of choice. You can update and overwrite all existing bank directory entries, including those from other providers and entries created manually, by selecting the Overwrite Existing Entries checkbox. Bank directory entries from a provider are always overwritten when you upload a bank directory file from that same provider.
Editing Bank Directory Entries

To edit a bank directory entry, open the Bank Directory view. Select the entry that you want to edit and click Edit . If you are using the Manage and Control Projects implementation focus, you can access your bank directory from the Business Partner Data work center. The editor is explained below.
Bank Data Enter the contact details for the bank in this section. You can enter the time period that the entry is valid for. You can also choose the appropriate check digit calculation method from the list. This list is maintained as bank directory master data. SWIFT Code Under Bank Control Data, you enter the SWIFT, or alternatively the Bank Identifier Code (BIC), and select the bank group that the bank belongs to. The SWIFT or BIC code is a unique identifier used to identify banks, most often in international wire transfers and other transactions. If you have accounts with several affiliated banks or several subsidiaries of the same bank, these banks may share the same SWIFT or BIC code. You click Identification via SWIFT/BIC in two situations: If the bank directory entry is the only bank directory entry that uses this standard ID for automatic payments. That is, where this bank directory entry is the only entry for a particular bank and its SWIFT or BIC identifier.
There may be more than one bank directory entry using the same SWIFT or BIC identifier. In this situation, the system is unable to identify the appropriate bank directory entry to use. Clicking Identification via SWIFT/BIC identifies the particular entry as the leading entry for this SWIFT or BIC identifier.
Click Identification via SWIFT/BIC in both situations to specify this bank directory entry as the leading bank. The SWIFT or BIC is a unique identifier used by banks to identify themselves in transactions. The system will now reference this bank directory entry for every transaction that uses the SWIFT or BIC identifier
National Bank Codes The national bank code details are used to identify the bank directory entry. You enter the national bank code details in the National Bank Code table cell. You can maintain multiple national bank code details for a single bank directory entry. To add national bank code details click Add Row. Generally, the national bank code type is entered automatically after you select the bank country. However, in certain cases, you may enter the national bank code and national bank code type manually. For example, in the United States, banks use many national bank codes and bank code types. Thus it is possible to manually enter the national bank code and bank code type for banks in the United States. Click Default to select the national bank code and national bank code type displayed as the default selection to be used for this bank directory entry. The selected national bank code details will now be used for automatic and electronic payments involving this entry.
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You click the Identification via National Bank Code check box in two situations: If the bank directory entry is the only bank directory entry that uses this national bank code for automatic payments. That is, where this bank directory entry is the only entry for a particular bank and its national bank code.
There may be multiple bank directory entries that use the same national bank code. In this situation, the system is unable to identify the appropriate bank directory entry to use in automatic payments. Clicking the checkbox identifies the particular entry as the leading entry for this national bank code.
Click Identification via National Bank Code in both situations to specify this bank directory entry as the leading bank. The national bank code is a unique identifier used by banks to identify themselves in domestic transactions. The system will now reference this bank directory entry for every transaction using the national bank code.
Assigned Branches You enter the contact details and assign a Branch Name for each branch of the bank directory entry in the Assigned Branches tab. The Branch ID is entered automatically by the system. To assign more than one branch to an entry, click Add Row and enter the details on the new row. If a bank directory entry is no longer relevant you can set the status to obsolete. Select the relevant entry, click Actions , then Set to Obsolete.
6.1.9.3 Banks and Bank Accounts Overview

Your company bank and bank account data is maintained in the Liquidity Management work center, Master Data My Banks view. The system assigns each bank a unique bank identifier, known as the Bank ID. Bank accounts are also assigned a unique identifier known as the Bank Account ID. The New Bank quick activity allows you to create a company bank record and related bank account(s).
Prerequisites
Master Data Bank Directory view. For information about creating You have created your bank directory in the the bank directory, see About the Bank Directory [250]About the Bank Directory [262]. Each bank account that you create in the system must correspond to exactly one bank account at your bank. You cannot create a new bank entry without an existing and corresponding bank directory entry for that bank. You must assign a Bank ID from the bank directory to each new bank entry you create. This Bank ID is stored in the bank directory and referenced by the bank entry. If a suitable bank directory entry does not exist, you can create a new bank directory entry and assign the new Bank ID to the new bank entry as required.
Fine Tuning Settings

The following options are available in the Activity List view of the Business Configuration work center and are relevant for banks and bank accounts;
Bank Groups You can review and change the settings for bank groups in the Business Configuration work center in the Activity List view. In the Fine Tune step, choose Cash Flow Management > Bank Groups. Bank groups are used for the
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optimization of bank determination during the processing of automatic payments. Payments processed within a particular bank group may have shorter processing times and reduced fees.
Bank Account Determination and Prioritization for Automatic Payments You can maintain a sequence of company bank accounts and payment procedures to be used in automatic payments in the Business Configuration work center in the Activity List view. In the Fine Tune step, choose Cash Flow Management > Bank Account Determination and Prioritization for Automatic Payments. You can also prioritize bank accounts and payment procedures based on certain selection parameters to match your business requirements. For example you can change the settings so you pay large, infrequent expenses, such as a supplier payment, by check. The check float may improve liquidity situation in the short term. However, check processing is also expensive and time consuming. This may not be a suitable payment method for paying small, recurring expenses. You can change the settings to have these expenses paid by electronic bank transfer.
General Ledger Posting

The creation of a new bank entry and related bank account(s) is recorded in the general ledger as follows;
All bank transactions are documented as a journal entry. The system derives the general ledger and associated subledgers automatically from the journal entries. Each individual bank account entry you create corresponds to a bank account in the cash ledger. This subledger records all the transactions made to and from the bank account. These subledgers in the cash ledger are aggregated by the system into a single general ledger account that represents the bank entry. This account details all transactions for all bank accounts assigned to the particular bank entry.
Creating a New My Banks Entry

You can create a new bank by choosing New , then My Bank in the My Banks subview. The My Banks editor displays. You can display all the relevant fields by choosing View All. The tabs displayed are:
General You assign the Bank ID here. You must also enter a name and select the working day calendar that applies to this bank. These fields are mandatory. You can also enter address and communication details for the bank. The system uses the information you enter here as the default main address on the next tab. Addresses You can enter and edit multiple addresses for the bank and also select the address that will be used as the default address for this bank. Contacts You can enter and edit contact details for individual employees of the bank. You can also select an employee as the default contact for communications with this bank. Payment Formats You select the allowed payment formats used for payments made from bank accounts held at this bank. You can choose the payment format(s) used for payments made from this account. This is the allowed payment file format such as bank transfer or direct debit. The payment methods available for the bank account are derived from the payment formats you select for the bank. The available payment formats are displayed in a list. Only those formats delivered with the system can be used. For more information see Electronic Payment Formats [274].
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This document contains text that is relevant for Austira only. To ensure that the system displays the correct text, select Personalize> My Settings. Select the Onscreen Help and choose Austria in the Country drop-down menu. Save your settings and logout to ensure the changes are made. Check printing is available as a default payment method. You do not need to select a specific payment format for the bank to select check printing as a payment method.
Bank Accounts You can enter and edit multiple bank accounts for a bank entry. You choose Add Row and enter the bank account number, an account description, and a time period for which the account will remain valid. For more details see the section below.
After you have completed the fields above choose Save . The new bank is automatically assigned a status of Active. Click Close to close the quick activity. The new bank is displayed in the My Banks subview. You can edit a bank at any time in the same subview. Select the bank entry you wish to edit, choose Edit , then select the particular data you want to edit. This section contains text that is relevant for Austria only. To ensure that the system displays the correct text, select Personalize> My Settings. Select the Onscreen Help and choose Austria in the Country drop-down menu. Save your settings and logout to ensure the changes are made.
Creating a New Bank Account

You enter the details for each bank account held with the bank on the Bank Accounts tab of the bank editor. You choose Add Row to create a new bank account. The available tabs are explained below.
Account You must select an account determination group for each bank account that you create. This determines which bank group journal entries will be posted to in the general ledger accounts. This field is mandatory and must be maintained for each bank account. You can also select an account type from the available list. Your bank may supply you with details of the IBAN or BBAN or check digit calculation method for this account. You can enter these in the relevant fields. You can also enter a Minimum Amount, Maximum Amount and Overdraft Limit for the bank account. These limits are usually agreed with your bank and help you to ensure that the liquidity levels in the account remain within the thresholds agreed with your bank. The Overdraft Limit is mandatory and must be maintained. If this field is not maintained, it is set to zero by default. For more information see Liquidity Check [268]. In some cases, you can hold several bank accounts at the same bank that use the same bank account number. For example, your company may make a large number of foreign currency transactions and thus, use several different bank accounts (each processing a different currency) with the same bank account number. You can enter an alternative account number to distinguish this account from other accounts that may use the same bank account number. in the Alternative Account Number field. If you want to pay the bank fees for this bank account with another account, you can enter the bank account number of the account that you wish to use to pay the fee in the Bank Account for Fee field. You cannot delete a bank account from the system once it has been activated.
Alternative Currency If you want to maintain postings in a currency other than the main account currency, you can select the alternative currencies on the Alternative Currency tab. You choose Add Row and select the appropriate currencies, as required. Payment Methods
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You select the payment methods that can be used to make payments from this account. The available payment methods are defined by the payment formats you selected on Payment Formats tab earlier. For example, if you select SEPA Credit Transfer on the Payment Formats tab, you can then select SEPA Credit Transfer on the bank accounts Payment Method tab.
Check Lots A check lot is a group of checks issued from the same bank account. You can maintain the details for each check lot on the Check Lot tab. You choose Add Row to create a new check lot. You must enter a check lot id, description, and the numbers of the next and last check in the check lot. These fields are mandatory. The system automatically enters the check ids of the current and next checks based on the outgoing checks issued. You must also select one or more payment methods in the Allowed Check Lot Payment Method text box. You can, for example, select printed check, bank checks or bank checks for international payments. If you wish to issue outgoing checks from this check lot, you must select the Used for Automatic Check Numbering check box. This also ensures that the system provides the appropriate check number for the Outgoing Check quick activity. You can also enter the ID of the next check lot that will be issued from this account in the Next Check Lot ID field. The Receipt Date field is user maintained and for information purposes only. You may, if you want, enter the date you received the particular check lot, for your own records. If the check lot that you received was already numbered, you select the Prenumbered Check Forms check box. You can also enter a description of the method of output, for example a printer, in the Output Device field. You can also enter a description of the storage location and the check prefix and suffix. Payment Transaction Conditions This tab is only relevant if you process bills of exchange with this bank account. You may have preferential arrangements with your bank for processing bills of exchange. You specify the terms of this arrangement on the Payment Transactions Conditions tab. You select the particular type of bill of exchange (payable or receivable) in the Document Type column. Then, you can select the transaction conditions agreed with your bank for the bills of exchange payable and receivable processed by this account. You can, for example, enter 50000 Euro per year as the Minimum Transaction Volume. This means that you have agreed with the that this bank account must process at least 50000 Euro per year for this particular bill of exchange. You can enter the lowest required number of transactions in the Minimum Transaction Number column. You can also enter an agreed number of days that the Value Date may exceed the Due Date in the Agreed Delay of Value Date after Due Date column. For example, if you enter two days, the bank will credit the account two days after due date. You can also enter the minimum of number of days that must exist between the deposit date and the due date in the Minimum Advance of Deposit Date before Due Date column. For example, if you enter two days, the deposit date should occur at least two days before the due date. The Minimum Advance of Deposit Date before Due Date and the Agreed Delay of Value Date after the Due Date are inter dependent. For example, you may have a bill of exchange receivable with a due date of May 15th. You have entered three days in the Minimum Advance of Deposit Date before Due Date column and two days in the Agreed Delay of Value Date after Due Date column for the relevant bank account. You must deposit this bill of exchange by May 12th , three days before the due date. The value date will be May 17th , according to the payment transaction conditions you specified for the bank account. If you deposit the bill of exchange after May 12th, the value date is proportionally delayed. For example, if you deposit the bill of exchange on May 15th, the value date will be May 20th. This is because the system still applies the payment transaction conditions set for the bank account, despite the fact that you deposited the bill of exchange before the due date. This means that the bill of exchange will not be processed before the agreed due date.
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6.1.9.4 ISR Payments - Switzerland
6.1.10 Liquidity Forecasts

6.1.10.1 Liquidity Check Overview
A liquidity check is performed each time an outgoing payment is created to verify that there are sufficient funds available to facilitate the payment. The liquidity check is performed for all outgoing payments created in the Payables, Receivables, Liquidity Management, and Payment Management work centers. This includes the following payment methods:

No liquidity check is performed for tax payments and cash transfers. You can choose not to perform the liquidity check by selecting the Release Without Liquidity Allocation check box when you create the outgoing payment . The section below explains how the liquidity check works.
Process Flow
When an outgoing payment is created, a liquidity check is performed on the relevant bank account. The system adds the transaction amount to the balance of the relevant bank account and checks this against the following fields on the bank account editor:

Maximum Amount Minimum Amount Overdraft Limit
The system uses the confirmed bank account balance and the planned liquidity at a specified due date to calculate the relevant bank account balance. The system uses incoming and outgoing payment advices, incoming and outgoing bank payment advices, and outgoing bank transfers yet to be transferred, to calculate the planned liquidity. This means that expected liquidity items, for example an outgoing bank transfer yet to be transferred, are captured when the system
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calculates the bank account balance. However, incoming bank transfers yet to be transferred are not included as no record of these exists in the system. To calculate the transaction amount, the system compares the transaction currency and the bank account currency. If these are different, the transaction currency is converted into the bank account currency. The liquidity check is performed as follows: 1. The system sums the transaction amount and the bank account balance. If this amount is less than the Overdraft Limit, the payment is rejected. If not, the next stage of the liquidity check is performed. 2. The system again sums the transaction amount and the bank account balance. If this is less than the Minimum Amount, the payment is released but with limited liquidity. Released with limited liquidity means that the system will allow the payment to be made from this account however, an account with a more suitable liquidity position is preferred. The system prioritizes the preferred account ahead of the other account when the payment proposal is created. If the sum of the transaction amount and the bank account balance is greater than the Minimum Amount, the next stage of the liquidity check is performed. 3. The system again sums the transaction amount and the bank account balance. If this amount is greater than the Maximum Amount, the payment is released but with limited liquidity. If not, the payment is released with sufficient liquidity.
6.1.10.2 Liquidity Forecast
The liquidity forecast displays expected cash inflows and outflows for an upcoming period of time. The exact time period shown is defined in the system configuration. This information allows you to monitor your liquidity position, helping you make short and medium term investment and financing decisions. The most recent liquidity forecast is created and displayed in the Liquidity Forecasts view. The default configuration setting for the time period for the liquidity forecast is ninety working days.
System Settings
Configuration settings are normally performed by a key user. If you do not have the required authorization, contact your key user. The following settings are relevant for the liquidity forecast:
Ensure that Cash and Liquidity is activated in your system configuration. To find this business option, go to the Business Configuration work center and choose the Implementation Projects view. Select your implementation project and click Edit Project Scope. In the Scoping step of the project, ensure that Payment and Liquidity Management is selected within the Cash Flow Management area. In the Questions step, expand the Cash Flow Management scoping element and select Payment and Liquidity Management. Select Cash and Liquidity and answer the questions related to liquidity forecasts. In the Fine Tune step, review and specify the settings under Global Settings for Cash and Liquidity Management. In the Fine Tune step, review and specify the settings of the optional Liquidity Forecast activity. You can extend the time period for the forecast and, create new profile codes that you use in certain circumstances. You can for instance set up liquidity forecast profiles by region (For example you can assign only European companies to a dedicated profile).
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Creating a Liquidity Forecast

As a matter of best practice, you should perform the liquidity forecast only after the relevant data has been processed in the Payables, Receivables, Tax Management and Payment Management work centers, that is, later in the working day. You should ensure that open clearing and allocation tasks are completed and payment reservations are released. You should also enter and upload all available bank statements. This ensures that the liquidity forecast is as accurate as possible. 1. Create a New Forecast Run The liquidity forecast is based on data collected by the liquidity forecast run. You can create a new liquidity forecast run in the Liquidity Management work center. You can also select whether you want to execute the run immediately or at another point in the future. You may also schedule forecast runs on a frequent and recurring basis to avoid having to repeat the same task each time you wish to create a new liquidity forecast. The system then gathers all the data that exists within the system as defined by the parameters of the run. You must create and release the relevant business documents, where necessary, to ensure the system can capture the data, for example you must release all forecast planning items. The system gathers data from the following sources: Trade Receivables such as Customer Invoices and Credit Memos

Trade Payables such as Supplier Invoices and Credit Memos Released Travel Expense Reports Tax Payables and Receivables such as open items from released invoices and tax returns Incoming and Outgoing Payments Forecast Planning items that are released and have an expiry date in the future
The system collects the relevant data from the sources above and aggregates it. Then, the system calculates the date of these items. The system calculates the dates differently depending on the item, as outlined below: For Customer Invoices paid using an incoming direct debit, the date of the cash discount terms depending on the payment strategy settings, is used. For customer invoices using all other payment methods except incoming direct debit, the due date for the full payment is used.

For Credit Memos, the due date is used. For open tax items from released invoices, the first day of the next month after the invoice date is used. For Tax Returns, the posting date of the tax return is used. For Incoming and Outgoing Payments, the value date is used. The system calculates the value date differently for each payment method. For Forecast Planning Items, the value date is used.
Overdue Payments Open receivables and payables with a due date before the date of the liquidity forecast, and payments that are not yet assigned to a source document are displayed on the first date of the liquidity forecast under Overdue Payments. To display the overdue items including their original value date select Liquidity Forecast Transaction Details from the context menu of the amount field. Drag and drop the Original Value Date attribute from the Not Currently Shown section to the Rows section. To display the liquidity forecast without overdue items you can start for example the Liquidity Forecast by Liquidity Level report and set the Exclude Overdue Items checkbox. Expired and closed forecast planning items are also not displayed in the forecast.
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2. Forecast Data Output The forecast is displayed in the Liquidity Forecasts subview with a status of In Modification. The system groups the transaction sources of the liquidity forecast according to the following logic. All items with a positive value are displayed under Collections. These are further divided into the categories listed and explained below. Customer Receipts are derived from customer invoices, payments from customers such as a credit card payment or check, and sent to you by your customers.

Intercompany Receipts are derived from forecast planning items that are not expired. Tax Receipts are derived from tax receivables and the tax declaration, if this has a positive value. Other Receipts are derived from bank-to-bank transfers and supplier credit memos and payments.
All items with a negative value are displayed under Disbursements. These are further divided into categories that are listed and explained below. Supplier Payments are derived from supplier invoices, payments to a supplier such as check or bank transfer, and payment advices that you sent to your supplier.

Employee Expenses are derived from travel expense reports and the payment of travel expense reports. Intercompany Payments are derived from forecast planning items. Tax Receipts are derived from tax payables and the tax declaration, if this has a negative value.
For the Liquidity Forecast by Payment Method view, the system groups the payment methods according to the following logic. All items with a positive value are displayed under Collections. These are further divided into the categories listed and explained below. Check Deposits are derived from check deposits received.

ACH Credits are derived from incoming bank transfers. Wires In are derived from incoming wire transfers. Other Credits are derived from received credit card, direct debit and cash payments.
All items with a negative value are displayed under Disbursements. These are further divided into categories that are listed and explained below. Checks Paid are derived from outgoing checks.

ACH Debits are derived from all outgoing bank transfers. Wires Out are derived from outgoing wire transfers. Other Debits are derived from outgoing credit card, direct debit and cash payments.
You can view the forecast grouped by transaction source or payment method for daily, weekly or monthly time periods in the Liquidity Forecasts subview. To do so, choose the Show arrow and choose the view you wish to see. You can also view the forecast reports from a number of perspectives depending on your business need. To do so you select the Reports view in the Liquidity Management work center. For example, if you wish to make currency management decisions you can view the forecast for each transaction currency for the selected time period. You can do likewise for transaction sources and payment methods. 3. New Forecast Planning Item (This is an optional step). If you wish to include future items that will effect the liquidity forecast but which are not captured by the system, for example human resource expenses, you must create a new forecast planning item. After this item is entered you must refresh the forecast data for the relevant liquidity forecast. The new forecast planning item is included only after the forecast data has been refreshed in this manner. For more information, seeForecast Planning Item [272].
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You can only refresh a forecast on the same day that the forecast was created.
Forecast Data Collection Errors

If an error occurs during the creation of the forecast, the forecast is displayed with the status of Data Collection Failed. You must choose on the Forecast ID to display the forecast data sources. If any one or all of the three data sources are missing or have a status of Incomplete, the liquidity forecast has failed and you should report an incident. If the data sources have a status of Complete, you must choose Check and Finish to display an error message that details the problem. After you correct the error, choose Check and Finish . The forecast should now display in the Liquidity Forecasts subview with a status of In Modification. For example, you choose Check and Finish and an error message displays that asks you to maintain missing exchange rates. You need to edit some missing exchange rates. You open the General Ledger work center and choose Edit Exchange Rates in the Common Tasks pane. You return to the Liquidity Forecasts subview and choose the Forecast ID to display the forecast data sources. You choose Check and Finish . The forecast should now display with a status of In Modification.
6.1.10.3 Forecast Planning Item Overview

If you wish to include an expected liquidity item that is not captured by the system you must create a new forecast planning item using the New Forecast Planning Item common task. You can view all your forecast planning items in the Forecast Planning Items subview of the Liquidity Forecasts view of the Liquidity Management work center.
Features
You can create a new forecast planning item in the Forecast Planning Items subview of the Liquidity Forecast view in the Liquidity Management work center. To do so, choose New , then Forecast Planning Item. You can also create a new forecast planning item from anywhere in the Liquidity Management work center from the Common Tasks pane. The New Forecast Planning Item quick activity displays. Mandatory fields are denoted on the screen by a red asterisk. The sections of the quick activity are explained below;
General Data You select the payment method and enter the amount of the expected liquidity item. You select Increase for a future receivable and Decrease for a future payable in the Expected Cash Flow Direction field. You enter the date that you expect to receive the item in the Expected Value Date field. The forecast planning item is no longer valid (no longer captured by the liquidity forecast) beyond the date you enter in the Expiration Date field. Bank Data You select the relevant company and bank account. After you have done so, the system enters the company name, bank name and national bank code automatically. Source Data You enter the origin of the planned payment or expense, for example employee expenses, in the Transaction Source field. You enter the current state in the transaction life cycle of the expected planning item in the Transaction
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Progress field. If, for example, you receive notice of a future payables item, you choose Payables/Receivables from the list.
Reference You can also enter a memo for your own reference in the Reference free text box.
After completing the quick activity, choose Save to save the forecast planning item. The forecast planning item must be released before it can be captured by the liquidity forecast. Choose Actions , then Release on the quick activity to release the item. Alternatively you can release the forecast planning item in the Forecast Planning Items subview. In the Show list, choose In Preparation. All the forecast planning items that have been created but not released are displayed. Select the forecast planning item you want to release and choose Actions , then Release.
Liquidity Forecast Integration

It is not necessary to create a liquidity forecast before you create a new forecast planning item. The system captures the new forecast planning item within the liquidity forecast in two ways, depending on whether the liquidity forecast involved already exists or is to be created;
If a new liquidity forecast run is created after the forecast planning item has been released, the newly created forecast planning item will be automatically captured by the liquidity forecast run and will appear in the subsequent forecast. You can capture the new forecast planning item in an existing forecast by refreshing the forecast data. To refresh the forecast data, you open the Liquidity Forecasts subview. You select the relevant liquidity forecast and choose Refresh Forecast Data. The liquidity forecast is updated with the new forecast planning item only after you refresh the forecast data in this manner. The refresh may take some minutes, depending on the quantity of data.
The updated forecast, including your new forecast planning item, appears in the Liquidity Forecasts view of the Liquidity Management work center. You can only refresh a forecast on the same day that the forecast was created.
Example
Daniel Dough is the cash manager for Akron Heating Inc. He has received notice of future human resource expenses via future planning information from the human resources department. He opens the Liquidity Forecasts work center view and creates a new forecast planning item from. He completes the quick activity and chooses Save . Daniel reviews the forecast planning item and then chooses Release . After releasing the forecast planning item, he can refresh and open the liquidity forecast to see the expected human resource expense is now captured by the forecast in the Liquidity Forecasts view.
See Also
Liquidity Forecast [269]
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6.1.11 Payment Formats

6.1.11.1 Electronic Bank Statement File Formats Overview
You can use the electronic bank statement function to automate the process of posting incoming and outgoing payment items to your system for the purpose of cash allocation and reconciliation, as well as for updating your cash position. Different banks supply electronic bank statements in a number of different formats and a variety of detail. SAP supports a number of national and international file formats for bank statements, including the following formats listed in the table below:
Country Germany, United Kingdom, China United States, Canada, Australia France Format All MT940 formats BAI2 AFB
Although these formats are preconfigured, there are usually bank-specific characteristics that have to be considered and these may require further fine-tuning of your configuration settings (business transaction codes, for example). Contact your bank to verify the format and communication settings that are sp,ecific to your relationship.
6.1.11.2 Electronic Payment Formats Overview

You use the Electronic Payment Format feature to select the relevant file formats for the automated process of transmitting electronic payments to your bank(s). SAP supports the following outgoing payment formats:
Country France Format AFB Domestic Format AFB Foreign Format VCOM Bill of Exchange AFB Bill of Exchange Deposit AFB Bill of Exchange Cashing Response DTAUS/DTIZV Domestic Format DTAZV Foreign Format SEPA Credit Transfer BACS HSBC Lloyds Bank ACH CTX ACH CCD
Germany
United Kingdom
United States
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These formats are already preconfigured for your system. However, there are often bank-specific details that need to be considered, which may require the file format to be further adjusted. Contact your bank to verify the format and communication settings that are specific to your relationship. You can also make payments using a manual payment format. For more information see Manual Payment Formats [275]
6.1.11.3 Manual Payment Formats Overview


Prerequisites
Before you can create the outgoing payment, you must select Manual Payment as an available Payment Format for the relevant bank. For this, go to the Liquidity Management work center and navigate to an entry) Edit Master Data My Banks (select General . Go to the Payment Formats tab, click Add Row and select Manual Payment from the list.
Payment Format Prioritization

The system prioritizes the payment formats delivered with the system. The system prefers to use the formats that are defined in the system. It only uses the manual payment format if it cannot determine a particular payment format and the manual payment format is allowed for the particular My Bank entry. Some examples of how the system uses this logic to determine the payment format are:
You create a bank transfer in USD from a bank account held at a German bank. The bank account currency is Euro. The payment formats DTAUS0 and Manual are selected for the relevant My Banks entry. The system knows that the DTAUS0 format cannot be used for USD payment so it automatically selects the Manual payment format. In some cases, you may select manual as the only allowed payment formats for your bank accounts. This can be the case if you hold a bank account in a country that does not support a country-specific format. This payment format must be used for all transactions made from this bank account. In other cases, you may have selected both the Manual and SWIFT International 103 payment formats. This can be the case if you hold a bank account in a country that does not support a country-specific format but still need to create international transfers.
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If the bank can process payments using the SWIFT payment format, it is assumed that the bank is independent of the values, Domestic or International, that you enter when you create the outgoing payment. In this case, the system always uses the SWIFT format for both international and domestic transfers.
You may hold a bank account at bank in Germany. The payments formats DTAUS0 and Manual are selected for the relevant My Banks entry. You create a bank transfer between two domestic accounts. However, the bank account number is missing from the associated My Banks master data entry. The system expects to use the DTAUS0 payment format. In this case it will not use the Manual payment format to process the transaction. Instead the system generates an error message to inform the user that the master data is missing.
Payment Processing
The sections below describe the process flow for the payment processing of outgoing payments created using the manual payment format: After you release an outgoing payment, for example a bank transfer, go to the Liquidity Management or Payment Management work center, then select the Payment Monitor work center view. The bank transfer displays with a status of Ready for Transfer. You cannot create electronic payment file for a bank transfer that uses the manual payment format. You need to select the bank transfer, click Actions for Bank Transactions, then Set as Manually Downloaded. The status of the bank transfer changes to In Transfer. If the bank transfer is included in the next bank statement, the status will change to Confirmed. The process is the similar for wire transfers and direct debit payments.
6.2 Master Data View

6.2.1 Quick Guide for Master Data (in Liquidity Management)
The views My Banks, Bank Directory, Clearing Houses, Clearing House Accounts, Check Storages, Bill of Exchanges Storages and Petty Cash you can access from the Liquidity Management work center under Master Data.
Business Background Banks and Bank Accounts

Your company bank and bank account data is maintained in the Liquidity Management work center, Master
Data My Banks view. The system assigns each bank a unique bank identifier, known as the Bank ID. Bank accounts are also assigned a unique identifier known as the Bank Account ID. For more information, see Banks and Bank Accounts [264].
Bank Directory
You can use the Bank Directory to store all the bank information necessary for your daily business operations in a central repository. This directory is fully integrated within the system and can be accessed in the Bank Directory subview of the Master Data view in the Liquidity Management work center. For more information, see Bank Directory [250]Bank Directory [262] .
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Clearing Houses and Clearing House Accounts

A clearing house (also referred to as acquirer) is a financial institution or service provider that acts as a third party in the clearing of future payment contracts, for example credit card payments, for either the payer or payee or both. A bank may act as a clearing house. However, a clearing house does not necessarily have to be a bank. Clearing houses are maintained in the system in the Liquidity Management work center. Clearing house master data is maintained in the Clearing Houses subview of the Master Data work center view. Individual clearing house account data is maintained in the Clearing House Account subview, in the same work center view. For more information, seeClearing Houses and Clearing House Accounts [260].



Tasks Update a Bank Record

1. From the My Banks view select the bank that you want to update, choose Accounts . 2. You update the bank account details on the Bank Accounts tab. Choose Add Row and enter the bank account details to create a new company bank account. You enter the account details, such as account type and IBAN, on the Account tab. You can, for example, specify another account to pay the bank charges for this account, if required using the Bank Account for Fee field. You may make frequent foreign currency transactions using this account. To facilitate this, your bank may provide you with several bank accounts all using the same bank account Edit Bank
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number. To differentiate these bank accounts internally, you may enter an alternative bank account number in the Alternative Account Number field and the Bank Account ID field. You must enter an overdraft limit for the liquidity check. This amount must be a negative number. If you keep an agreed amount on deposit with your bank, you enter this in the Minimum Amount field. Similarly, if you wish to keep amount on deposit below a certain amount, you can enter this in the Maximum Amount field. These are not mandatory but they are used by the liquidity check. For more information see Liquidity Check [268]. 3. You can update the allowed payment formats for this bank on the Payment Formats tab. These are the allowed payment formats, used to make payments from the company accounts held at this bank. You should update the Payment Formats tab before you update the Payment Methods for the associated bank accounts. The available payment methods are defined by the payment formats you choose. For example, if you enter US ACH on the Payment Formats tab of the bank, then you can select ACH Credits on the Payment Methods tab of the bank account. Choose the Bank Accounts tab, select a bank account and choose the Payment Methods tab to display the chosen payment methods for the bank account. Clearing House and Check are available as default because these do not require a specific payment format. 4. You can create and edit check lots issued to you for this account on the Check Lots tab. You can split and remove check lots. However, you cannot split check lots that have been used in automatic payments. If you want to issue outgoing checks from this account, you must choose the Used in Automatic Payments check box. This allows the system to draw check numbers automatically from this account. This number will be used for checks used in automatic payments. If selected, it also provides the check number automatically on the New Outgoing Check quick activity. 5. This step is only relevant if you process bills of exchange with this bank account. You may have preferential arrangements with your bank for processing bills of exchange. You specify the terms of this arrangement on the Payment Transactions Conditions tab. You select the particular type of bill of exchange (payable or receivable) in the Document Type column. Then, you can select the transaction conditions agreed with your bank for the bills of exchange payable and receivable processed by this account. 6. To save the updated bank records, choose Save , and then Close . To open the bank from the list in the My Banks subview, choose the appropriate Bank ID. This information is intended to explain how you can update your bank records in the system. For more detailed information about the editor see Banks and Bank Accounts [264].
Manually Create a Bank Directory Entry

1. Open the Bank Directory subview. 2. Choose New , then select Bank Directory Entry.
3. Enter the Bank Name and select the Country. 4. To display all the fields that can be edited, choose View All. The following additional information is displayed: On the Assigned Branches tab, you can enter individual contact information for multiple branches.
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In the National Bank Codes table, you can enter multiple national bank code details for a single bank directory entry. You can then select one of these as the default national bank code details for the entry.
5. Choose Save and Close . If the data entered is consistent, then the bank directory entry is saved and displayed in the Bank Directory subview with a status of Active.
Upload a Bank Directory File

1. Open the Bank Directory subview. 2. Choose New , then select Bank Directory File Upload.
3. Select the Format. This specifies both the provider of the bank directory file, as well as the format used, for example Accuity , Accuity (ZIP), Deutsche Bundesbank, or SAPTemplate. To upload a bank directory file from a provider not listed in the dropdown list fo rthe Format field, select SAP Template. Before uploading the file, you must ensure that the data contained in the file complies with the SAP-supported format provided in the template. For more information, see SAP Format for Bank Directory Upload. 4. You can enter a Description to help you identify the file later in the upload history. 5. To update and overwrite all existing bank directory entries, including those from other providers and entries created manually, select the Overwrite Existing Entries checkbox. Bank directory entries from a provider are always overwritten when you upload a bank directory file from that same provider. 6. To upload the bank directory file, choose Add and select the file.
7. To review your entries and prepare your file for processing, choose Next . 8. To upload your file for processing, choose Finish . After the processing of the file is finished, the bank data contained in the file is displayed in the Bank Directory subiew. To view the bank directory file and the overall status of the processing of the file, click File Upload History in the Bank Directory subiew. If the overall status is red, you can correct any errors within the file and restart the file processing.
Create a Clearing House Account

1. Open the Clearing House Accounts subview. 2. Choose New , then Clearing House Account. The Clearing House Account editor displays.
3. Under Clearing House Account, enter the Clearing House ID and enter the number used by the clearing house to identify your company in the Merchant ID field. Select the company ID of the company that will use the account in the Company ID field. You can also enter the time period during which the account remains valid. 4. There are also three tabs to be completed: Account Enter an internal identifier in the Account Number field. This is used for information purposes only. Select the currency that the clearing house will use to report to your company in the Currency field. Also select the bank account ID of the account the
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clearing house will make payments to. Select your chosen credit card service provider in the Payment Service Provider field, if applicable.
Preferred Currency Select the currencies that you would like this clearing house account to process. If, for example, you enter EUR as a currency, then all credit card payments made in Euro will be processed by this account. If no currency is selected, the account will process credit card payments in all supported currencies. You may maintain multiple currencies for the same account.
Credit Card Type Select the particular credit card types, such as VISA or Mastercard, that will be processed by the account in the Credit Card Type column. If you want to select this account as the exclusive processor for a particular credit card type, select the Default checkbox. All credit card payments made using this credit card type will be processed by this account. Also enter the authorization validity period in the Authorisation Validity Days column. Your credit card service provider will, in most cases, provide you with the number of days for which the authorization will remain valid. The service provider receives this information from the payment processor (clearing house) and communicates it to you. You then enter this information manually. The system automatically references the authorization validity date contained in an electronic authorization request. If the request does not contain this date, the system uses the authorization validity days entered by you to calculate the authorization validity date. In this case, the system automatically calculates the authorization validity date by summing the current date and the authorization validity days entered by you. If you do not enter anything in the Authorization Validity Days column, the system then uses the current date as the authorization validity date. The transaction will be processed in the system but the transaction will not be, as the authorization period will be zero.
5. Choose Save
and then Close to activate the account.
Create a Check Storage

1. Open the Check Storages view. 2. Choose New Check Storage and enter the required data. Note to Location Type: If the check storage is to be used as a check deposit, choose Internal. Note: We strongly recommend that you create only one check storage for each company.
If the check storage is to be used as a lockbox, choose Bank. Note: We strongly recommend that you create only one check storage for each company and provider.
3.
Save the new record.
For more information, see Check Lots and Check Numbers for Outgoing Checks [257].
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6.3 Cash Position View

6.3.1 Cash Position Quick Guide
You can access the Cash Position view from the Liquidity Management work center under Cash Position. In the Cash Position view, the cash manager can see the cash position for the day. Setting the cash position involves aggregating all scheduled inbound and outbound payments for the day and determining if there is excess liquidity or a borrowing requirement. This normally occurs after cash flow information is collected and bank statement and lockbox files have been processed. The cash position provides you with consolidated information for all expected cash inflows and outflows across the organization. You can use it to get an overview of expected cash inflows and outflows for the current business day broken down by payment method and by processing bank. The system displays opening balances, collections, disbursements, net cash flow, and closing balance. For items and payments not included on the system, you can enter manual bank payment advices to ensure that these payments are factored into the cash position.
Business Background Cash Position

The cash position displays actual bank balance and transaction details as provided by prior-day bank statements. The cash position reflects the short term liquidity status of the company. The system provides you with an integrated, overview of your cash position in the Liquidity Management work center. For more information, see Cash Position [249].

Tasks Create a new Bank-to-Bank Transfer

1. Select the New Bank-to-Bank Transfer common task from the Common Tasks pane. 2. Select a payment method, for example bank or wire transfer. Then, you enter the transaction amount and select the company. You must enter an execution date. The system automatically enters the current date in this field by default. You can also enter a posting date. The also system enters the current date here by default. This is because bank-to-bank transfers are often completed on the same day as they are created.
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3. Select the Bank Account ID of the bank accounts that you would like to transfer money between. If you select Bank Transfer as the payment method, the system automatically enters the Debit Value Dates and the Credit Value Dates for both bank accounts. 4. After you have entered and reviewed the relevant information, choose Post . The bank transfer is displayed in the Payment Monitor work center view with the status Ready for Transfer. 5. A payment file must be created in the relevant file format and made available to the bank or banking software for processing. This can be done either automatically or manually. The payment file media run will complete the activity automatically. The file can also be created manually in the Payment Monitor view of the work center. You select the transfer and choose Actions for Bank Transactions , then Create Payment File . After the new payment file has been created, go to the Outbound Files subview of the File Management work center view. The outgoing file for your bank transfer displays here. You select the file and choose Edit . The Outgoing File screen displays. The actual new payment file for transmission to the bank can be seen on the Attachment tab of the payment file screen. Save the file from the browser window to your local computer for submission to the bank.
6.4 File Management View

6.4.1 File Management Quick Guide
You can access the Inbound Files view and Outbound Files view from the Liquidity Management work center under File Management. In the File Management view, the cash manager can monitor all inbound and outbound electronic files for processing, such as bank statement files and payment files. Bank statement files can be manually entered into the system, where they are then automatically processed. Payment files can also be downloaded for further processing, for example with external banking software.
Business Background Bank Statements

Getting up-to-date information about the status of your bank accounts is an important element of effective cash-flow management. To get an accurate picture of the status of your bank accounts, you need information about your current bank balance. Your bank provides you with this information via bank statements in either electronic or physical (paper) formats. The system supports both bank statement formats. Paper bank statements are entered and updated in the system manually in the Bank Statements view of the Liquidity Management work center. The system displays bank statements that have been entered in the system in the same view. You can upload electronic bank statement files in the Inbound Files subview of the File Management view of the same work center. For more information, see Bank Statements [253]. When a bank statement file is uploaded the system automatically copies the memo lines to the corresponding item document descriptions. Before releasing a bank statement you can manually enter a document description (header text) and adapt single item document descriptions. Item document descriptions are used for the automatic payment allocation (assignments or postings). If the system could not completely allocate the bank statement a task is automatically created in the Payment Management work list.
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NOTE: If you want the system allways to create a task for releasing a bank statement you must make the corresponding configuration settings in the Business Task Management for Payment and Liquidity Management activity. The document description (header text) and item document descriptions are finally shown in the journal entry.
Electronic Bank Statement File Formats

You can use the electronic bank statement function to automate the process of posting incoming and outgoing payment items to your system for the purpose of cash allocation and reconciliation, as well as for updating your cash position. For more information, see Electronic Bank Statement File Formats [274].
Bank Payment Advice

A bank payment advice contains items in the cash position that are not captured automatically by the integrated repositories. The bank payment advice acts like a memo, ensuring that the item is reflected in the current cash position. You should replace the bank payment advice with a transaction record in the next bank statement. For more information, see Bank Payment Advice [257].
Tasks Download an Outbound File

1. Go to the Liquidity Management work center, choose the File Management view, and then choose the Outbound Files subview. 2. Select the file that you want to view and choose Edit to open the outgoing file. To show all outbound files that have been downloaded and sent to the bank, choose Show , then choose Released for Transfer . To view all files that have yet to be downloaded, choose Show , then choose In Release . 3. Review the outbound file details on the Attachment tab. To display the outbound file, click on the file name in the Document Title column. You can also download the document view using your banking software or a text program. To download the file, choose Download , then save the file to your computer. If the file data is invalid or the bank rejects the payment file you can also reverse (cancel) or discard the outbound file. Choose Actions and choose the appropriate action to do so. The status of the payments contained in a reversed or discarded file changes to Not Transferred. You can create a new file for these payments after you have corrected the original error. 4. Choose Release to release the outbound file. This action allows you to differentiate between files that have been downloaded and are being processed by the bank from files that are yet to be downloaded. Thus files with the status Released for Transfer have been downloaded and made available for further processing whereas files with the status In Release are yet to be downloaded. 5. After you have received the bank statement file, verifying that the file has been processed successfully by your bank, open the Outbound Files subview. Choose Actions , then Confirm to change the status of the file to Confirmed.
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Upload an Inbound File

1. Navigate to the File Management view, and then choose the Inbound Files subview. 2. Select the company file register of the company for which you want to upload the bank statement. 3. Choose New and then select Inbound File. The New Inbound File quick activity displays. 4. Select your File Type from the list and the sender bank. 5. In the Attachments section below, click Add File and enter the file data. Optionally, you can enter a Title and specify a Document Type. Then choose Add . You can verify that you have selected the correct document by selecting it and choosing View . 6. Choose Start File Upload to import and save the file. 7. You now see your bank statement in the Inbound Files subview, with the status In Process. If you have accidentally uploaded the incorrect file, you can choose Edit and select a new one, otherwise you can confirm the bank statement file by choosing Actions and then choosing Mark as Confirmed. The bank statement file should now have the status Finished. You can also mark a file as erroneous by choosing Actions as Erroneous. and choosing Mark
If your bank statement file finishes with the status Error in Processing, refer to the corresponding error messages to determine the problem. To view the results of the bank statement import, you open the Bank Statements view and search for the relevant bank statement. The bank statement should have the consistency status of Consistent. The system performs consistency checks to make sure that the opening balance of the bank statement file corresponds to the closing balance of the last statement. The system also checks that the current bank statements Statement Date is not before the previously entered bank statements Statement Date, and verifies that the Statement ID is consecutive. If the Statement ID is not consecutive and the system is configured to create tasks for such bank statements, the system saves the bank statement with the current Statement ID with a status of Consistent and creates a task to make the user aware of the discrepancy. If the previous bank statement exists in the system, the system does not verify the opening and closing balances. If the Opening Balance, Closing Balance or Statement Date are incorrect, the bank statement saves with the status Inconsistent. If your system is configured to create tasks for inconsistent bank statements, the system creates a task to review the inconsistent statement. You can display the bank statement itself by choosing the bank statements Statement ID.
Import and Verify Lockbox Files

1. Go to the Liquidity Management work center, open the Inbound Files subview of the File Management work center view.
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2. The lockbox file that will be uploaded does not contain company information or payee account details, only payer account details. You therefore need to allocate the lockbox file to a company so that the payment can be recognized in the system. 3. Choose New , then New Inbound File to display the New Inbound File quick activity. 4. Select the Lockbox file type from the File Type dropdown list. Enter the sender of the lockbox file in the Sender field, or select one using the dropdown list. The sender can be a bank offering a lockbox provider service, or a third-party lockbox provider. When you select the Sender, the system automatically displays your bank account with the provider including the bank code from the company payment file register. 5. Choose Add , then choose File. Enter the name of the file you want to upload, or browse to its location. Additionally, you can enter a title in the Title field and specify a Document Type if you wish. Then choose Add . You can verify that you have selected the correct document by selecting it and choosing View . 6. Choose Start File Upload . This function saves you a lot of effort as the system automatically executes the following actions: The file is released

Lockbox batches are created The checks contained in the batches are created in the system These checks are released for clearing (the file also contains advice data) Automatic payment allocation and clearing takes place for these checks
7. You now see your lockbox file in the Inbound Files subview, with the status In Process. If you have accidentally uploaded the incorrect file, you can select a new one by choosing on Edit, otherwise you can confirm the lockbox file by choosing Actions and then Mark as Confirmed. The lockbox file should now have the status Finished. You can also mark a file as erroneous by choosing Actions , then Mark as Erroneous.
6.5 Bank Statements View

6.5.1 Bank Statements Quick Guide
You can access the Bank Statements view from the Liquidity Management work center under Bank Statements. The Bank Statements view displays the status and transaction detail of the bank statements received from your banks. You can view opening and closing balances for each statement for each reporting bank. You can also manually enter paper bank statements into the system. You can also view bank statements imported from the File Management view.
Business Background
For more information, see Bank Statements [253].
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Tasks Manually Enter a Bank Statement

1. Choose New Bank Statement , enter the required data.. (Note: The system automatically fills the Bank Account ID field with the Bank Account ID of the bank account used in the previous statement. The system does not automatically calculate the Closing Balance. Enter this information from your most current bank statement.) 2. Select Next to navigate to phase Select Items. In this phase you can see self-initiated payments of the selected bank account. To directly assign (allocate) a payment to the bank statement item set the indicator Selected. For this reason, in the next phase the Further processing status of this item should be Not Relevant. To choose an item to be processed with this bank statement set the Selected indicator. Individual bank transfers are displayed for each individual payment format. You can confirm individual bank transfers in this step. If the bank confirmed these bank transfers as a batch, you should manually enter the individual bank transfers in the next step. You need to enter the Payment Message ID in the Document ID field as a reference. Choose Next to continue. If the Advice check box is selected for an item, an advice entry exists for this item. This means that you do not have to enter any information from the bank statement to the remittance advice. The system does this automatically. 3. To edit a bank statement item that has already been created, or create a new bank statement item. To edit an existing item, select the item from the list and choose Item Details . You can enter a Bank Charge Amount, Debit Amount, and Credit Amount data for the line item. You can also edit transaction and bank account data for individual invoices contained in the line item. To create a new item, choose Add Row . You enter the Payment Method, Issue Date, Customer/Supplier ID, Invoice Reference ID, Bank Charge Amount, and the Debit or Credit Amount as appropriate. Choose Next to continue. 4. Check the statement details you entered. If you do not want to post the statement immediately, choose Save to save a copy of the statement. Choose Post to release the bank statement. 5. Choose Close to save the new bank statement and return to the Bank Statements work center view. Depending on your business configuration, the new bank statement is now either released for approval, or added to the list of bank statements in the Bank Statements view.
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6.6 Payment Monitor View

6.6.1 Payment Monitor Quick Guide
In the Payment Monitor view, you can track and maintain all your company's incoming and outgoing payments. You can filter the payments by date, by payee, or by status, for example, to show obsolete payments which have been canceled, returned, or rejected payments. You can create new payments, or enter payments that are created manually or outside of the system. You can also view payment details for each item. These details vary depending on the payment method and status of the payment, for example, deposit data for incoming checks, or the reason why a check was voided. You can access the Payment Monitor view from the Payment Management work center or from the Liquidity Management work center under Payment Monitor.

The incoming payment process covers the acquisition of liquid funds in the company. Thus an incoming payment increases the cash and cash equivalents such as the cash balance or bank balance. An incoming payment does not necessarily increase the financial assets, this includes short-term payables and receivables. The clearing of a receivable by an incoming payment increases the bank account balance, however at the same time, the receivable expires but this does not change the financial assets. For more information, see Incoming Payments [31].
Outgoing Payments
Bank Transfers
You can use bank transfers to make both automatic and manual outgoing payments. There are two types of bank transfer: bank transfers, which are used to make payments from a company account to third-party accounts; and bankto-bank transfers, which are used to transfer funds between company bank accounts. These are used mainly for transfers relating to liquidity management. For more information, see Bank Transfers [255].
Liquidity Check
A liquidity check is performed each time an outgoing payment is created to verify that there are sufficient funds available to facilitate the payment.
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The liquidity check is performed for all outgoing payments created in the Payables, Receivables, Liquidity Management, and Payment Management work centers. This includes the following payment methods:

No liquidity check is performed for tax payments and cash transfers. For more information, see Liquidity Check [268].




Tasks Create a New Payment
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1. Click New Payment By , then choose the appropriate payment method. You can create the following types of payments: Incoming Check

Outgoing Check Outgoing Bank Transfer Outgoing Wire Transfer Multiple Checks
2. Enter the relevant details for the payment method you selected. These details vary depending on the payment method selected. Mandatory fields are indicated by an asterisk (*). 3. Payments can be created with reference to an open item, customer, or supplier account, or they can be posted directly to a general ledger account. For selected incoming and outgoing payment types you can optionally define in the configuration settings whether approval tasks should be generated for this work center for specific payment methods and when you exceed a defined threshold amount. You find these settings in fine-tuning under Business Task Management for Payment and Liquidity.
Monitor Payment Allocation Processing

Create a New Outgoing Bank Transfer

1. Go to the Liquidity Management or Payment Management work center and open the Payment Monitor work center view. You can also perform this task in the Payables work center, Supplier Account Monitor view. 2. Click New Payment By , then Outgoing Bank Transfer.
3. Enter the relevant details for the bank transfer. The following fields are mandatory, as indicated by an asterisk (*): Company ID, Payment Amount, Payee, Payee Bank, and select a bank account ID to make the payment from. If you do not wish to perform a liquidity check on the bank account before the transfer is posted , select the Liquidity Allocation Not Required checkbox. For information about liquidity checks, see Liquidity Check [268]. 4. Click Complete Bank Data . The system automatically fills the other fields, where possible. For example, if you have not selected a bank account in the Bank Account ID field, the system automatically chooses the optimum bank account . To enter further details such as payment instructions, or to change the type of bank transfer, for example to international bank transfer, click View All to display all available fields. Payment instructions are additional services provided by your bank that may increase the security of the transaction, for example, calling the recipient bank with notification of a payment. These services are only available for international
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bank transfers. Your bank will inform you of the payment instructions it offers and any additional fees they charge for using them. If the bank transfer has already been completed outside the system, you do not need to create a payment file. If you do not wish to create a payment file for this bank transfer, select the Create Payment Manually check box. You can also choose the bearer of the bank charges arising from the transfer. If you do not want to execute the bank transfer immediately, you can enter the date that you want the bank to execute the transaction in the Bank Processing Date field. If you click Complete Bank Data after you enter this date, the system automatically fills the Expected Bank Value Date and Posting Date fields. 5. Select whether you wish to allocate the transfer to open items or post it directly to the general ledger account without allocating the payment. To allocate the bank transfer to open items, choose Reference to Items. The system displays open items for the supplier or customer account. You can then match the bank transfer to these open items. You can also add discounts to these items. If you want to pay items on behalf of another customer or supplier, click Accounts then Add Account. Now you can also choose from the open items belonging to the account you selected in addition. For more information on how to edit your open items, see Using the Open Items Table [93].
To use this bank transfer to make a payment that is not matched to any open items, choose Direct Posting to G/L Account. Select a country and choose the entry type Gross or Net. Click Add Row to manually assign the payment to the relevant general ledger account. You can also enter a memo line in the bank transfer.
6. Click Post . The bank transfer is displayed in the Payment Monitor work center view with the status Ready for Transfer. 7. A payment file must be created in the appropriate file format to be made available to the bank or banking software for processing. This can be done automatically using a payment file media run. For information on how to create a payment media run, see Create Payment Media Run [238]. To create the file manually for transmission to the bank, proceed as follows: 1. In the Payment Monitor view, select the relevant bank transfer, and click Actions for Bank Transactions , then Create Payment File. 2. Go to the File Management work center view, Outbound Files subview, select the new payment file, and click Edit . 3. From the Outgoing File screen, go to the Attachment tab and select the payment file. To download the file from the browser window to your computer, click Download . This document contains text that is relevant for Austira only. To ensure that the system displays the correct text, select Personalize> My Settings. Select the Onscreen Help and choose Austria in the Country drop-down menu. Save your settings and logout to ensure the changes are made.
Create an Outgoing Check

1. Go to the Liquidity Management or Payment Management work center and open the Payment Monitor work center view. You can also perform this task in the Payables work center, Supplier Account Monitor view.
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2. Click New Payment By , then Outgoing Check to open the New Outgoing Check screen. 3. Enter the appropriate data for the fields Company ID, Payment Amount, and Payee. 4. Click Complete Bank Data . The system fills the Bank Account ID and Bank Name fields automatically. 5. Ensure the Reference to Items radio button is selected, so you can match the check with the appropriate open item. All open items on the customer or supplier account should appear in the Open Items table, if you have previously entered the Payee. Select one or more open items to be paid by the check using the Matched indicator. Discounts or credits can be applied to the open items, if necessary, to ensure the payment amount matches the open item amount by clicking Actions , then Apply Discount or Credit . For more information on how to edit your open items, see Using the Open Items Table [93]. If the check you are issuing is not related to a customer or supplier account, select the Direct posting to G/L Account radio button, then select an appropriate general ledger account to which the check should be posted. You would do this if your company wished to make a charitable donation, for example. 6. To save your check, click Post . 7. To manually print a check to send to the recipient, click Actions for Checks Check Form. , then Print
Outgoing checks are printed automatically by the system on a regular basis. If you create a check outside of the system, you can stop printing for the check (based on the check information you enter into the system) by selecting the Set as Manually Created indicator.
To void a check, for example if the check form is damaged in the printer and you need to print a new one, click Actions for Checks , then Void. This option is possible while the check has the status In Transfer. Note that voiding a check does not cancel the payment; it simply invalidates the old check and generates a new check number. To cancel a check, click Reverse . Note that you can only cancel a check while it has the status Ready for Transfer. For more information, see Check Lots and Check Numbers for Outgoing Checkes [257].
Enter an Incoming Check

1. Go to the Liquidity Management or Payment Management work center and open the Payment Monitor work center view. 2. Click New Payment By , then Incoming Check to open the New Incoming Check screen.
To enter more than one new check, click New Payment By , then Multiple Checks to open the New Multiple Checks screen. Note that with this action you are not able to clear open items. 3. Enter the relevant payment details, including the data for the fields Payer, Check Number, Payment Amount , and select the correct currency from the dropdown list next to the amount. Enter other information as required.
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4. Under Payment Application Method, select whether you wish to allocate the check amount to open items or post it directly to the general ledger account without allocating the payment. To allocate the check to open items, choose Reference to Items. The system displays open items for the supplier or customer account. You can then match the check to these open items. You can also add discounts to these items.
To use this check to make a payment that is not matched to any open items, choose Direct Posting to G/L Account. Select a country and choose the Entry Type. Click Add Row to manually assign the payment to the relevant General Ledger account.
5. Click Post to save and post the new check. If you want to create more than one check you can also use the Post and New button. The new check is saved in the system and added to the payments listed in the Payment Monitor view.
Work with an Existing Payment

Depending on the payment method used for each payment, several editing options are available, which influence the status of the payment or the payment itself. 1. Select the relevant payment and click Edit . The relevant screen for the selected payment type opens. 2. To prevent the payment from being completed, click Reverse . 3. To create a remittance advice for the selected payment, provided the payment method supports remittance advice, click Create Remittance Advice . Depending on the status of each payment, it may not be possible to edit or reverse the payment, or to issue a remittance advice. 4. In addition to the general functions listed above, each payment method has additional possible actions: Actions for Checks Set To in Transfer: Indicates that a paper check has already been created for the payment.
Void: Cancels the specific check that has been issued, and leaves the open payment in the system so that a new check can be issued. Assign to Deposit: Adds the check to an appropriate check deposit, so it can be sent to the bank. Print Check Form: Instructs the system to print a check letter for the check. Renumber: Allows a new check number to be assigned to a check, for example, due to a mismatch between the check number in the system and the number printed on the check. Toggle: Switches the check numbers of two selected checks. Set to Not Transferred: Indicates that a check has not yet been sent to a bank or customer or supplier, so that it can be reissued. This may be necessary if a check was incorrectly printed, for example.
Actions for Bank Transactions Create Payment File: Sends the payment file that will be sent to the bank to the Liquidity Management work center. The payment file will be created in the next scheduled payment media run if this action is not used.
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Set to in Transfer: Indicates that the transfer has already taken place, using online banking or a money transfer service, for example. Set to Not Transferred: Indicates that a transfer has not yet been sent to a bank or business partner, so that it can be reissued. This may be necessary if the payment file was incorrectly transferred or was corrupted.
Actions for Credit Cards Settle: Settles a credit card payment that has not already been transferred.
6.7 Bank Payment Advices View

6.7.1 Quick Guide for Bank Payment Advices
You can access the Bank Payment Advices view from the Liquidity Management work center under Bank Payment Advices. In the Bank Payment Advices view, the cash manager can manually enter information received from the companys bank in the form of bank payment advices. Based on the information received from the bank, the cash manager can enter the advice with or without a posting to accounting. If no posting is made in accounting, the advices are shown in both the cash position and in the liquidity forecast.
Business Background Bank Payment Advices

A bank payment advice contains items in the cash position that are not captured automatically by the integrated repositories. The bank payment advice acts like a memo, ensuring that the item is reflected in the current cash position. You should replace the bank payment advice with a transaction record in the next bank statement. For more information, see Bank Payment Advices [257].

Tasks Create a New Payment Advice

1. Choose New , then choose Bank Payment Advice.
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You can also create a new payment advice using the New Bank Payment Advice common task from the Common Tasks pane. 2. Under General Data select either Bank Credit Advice or Bank Debit Advice as the Advice Type . 3. The system automatically enters the current date as the advice date and posting date. You can change this if necessary. You enter the date that the advice was created in the Advice Date field. You can enter the date that you expect the bank payment advice to be posted to your accounts in the Posting Date field. 4. If the advice represents an existing payment, choose the Payment Confirmed checkbox to create the associated postings in accounting. If you do not select the checkbox, the advice is considered as notice of a future payment and the system does not create any postings in accounting. 5. Under Payment Data, select the payment method and enter the amount of the payment. 6. Enter the date that the transaction is reflected in your bank account in the Value Date field. If you do not enter a value in this field, the system automatically enters the advice date. The Value Date must be equal to or greater than the Advice Date.
7. You can also enter the ID from an advice sent to you by your bank or business partner in the External Advice ID field. 8. Under Bank Data enter the business partner name and bank details, if applicable. 9. On the References tab, you can enter a note to reference individual items, such as an invoice, on the Reference Items tab. If required, you can also enter a memo line on the Note to Payee tab. 10.Choose Release to release the payment advice, or choose Save to release the payment advice at a later time. This document contains text that is relevant for Austria. To ensure that the system displays the correct text, select Personalize >My Settings. Choose Onscreen Help and choose the relevant country using the Country drop-down menu. Save your settings and logout to ensure these changes are made.
6.8 Liquidity Forecast View

6.8.1 Liquidity Forecasts Quick Guide
You can access the Liquidity Forecasts view, the Liquidity Forecast Runs view and the Forecast Plannning Items view from the Liquidity Management work center under Liquidity Forecasts. In these views, the cash manager can create and view the liquidity forecast for the company. This helps you make short and medium term investment and financing decisions. The liquidity forecast shows expected cash inflows and outflows for an period of time.
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Business Background Liquidity Forecast

The liquidity forecast displays expected cash inflows and outflows for an upcoming period of time. The exact time period shown is defined in the system configuration. This information allows you to monitor your liquidity position, helping you make short and medium term investment and financing decisions. The most recent liquidity forecast is created and displayed in the Liquidity Forecasts view. For more information, see Liquidity Forecast [269].
Forecast Planning Item

If you wish to include an expected liquidity item that is not captured by the system you must create a new forecast planning item using the New Forecast Planning Item common task. You can view all your forecast planning items in the Forecast Planning Items subview of the Liquidity Forecasts view of the Liquidity Management work center. For more information, see Forecast Planning Item [272] .
Tasks Create and Refresh the Liquidity Forecast

For information about this task, see here [295].
6.8.2 Create and Refresh the Liquidity Forecast Overview

In the Cash and Liquidity work center you can create the liquidity forecast for your business. This allows you to review the expected cash balances for the next ninety business days (as a short-term forecast, for example, for the current business week broken down in days). You can also refresh the liquidity forecast. However, you should only use this feature when adding new forecast items to the forecast. The figure below provides an outline of this task. Select each element to display step-by-step instructions. The default setting for the time period for the liquidity forecast is ninety working days. This default setting can be changed in your system configuration.
Procedure
1. Go to the Cash and Liquidity work center, then choose the Liquidity Forecast view. Before you can create or refresh the liquidity forecast you need to create a new liquidity forecast run. As a matter of best practice, you should perform the liquidity forecast only after the relevant data has been processed in the Payables, Receivables, Tax Management , and Payment Management work centers, that is, later in the working day. You should also upload all available bank statements. This ensures that the liquidity forecast is as accurate as possible.
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2. To check and correct any data collection errors, proceed as follows: 1. In the Liquidity Forecast view open the Liquidity Forecast Run subview. Choose New and choose Liquidity Forecast Run. 2. In the Description field enter the name of the run, select the Forecast Profile field and choose a profile from the drop down list. Note the liquidity forecast run ID at the top of the screen. 3. Choose Save , then Activate . Then choose Schedule . Select whether you want to execute the run immediately or in the future. Choose Save and then Close to close the quick activity. You can schedule liquidity forecast runs on a frequent and recurring basis so that you do not have to perform the steps above manually. 3. After the run has finished as scheduled, open the Liquidity Forecast subview. The forecast displays with a status of In Modification. You can use the forecast as it is or add a new forecast planning item as required. If your new forecast displays with a status of Data Collection Failed, an error has occurred you need to proceed as follows: 1. Choose the Forecast ID of the relevant forecast. The liquidity forecast data sources display. Choose Check and Finish display an error message that describes the error. You can see a detailed description of the error message in the application log. If the status of any of the data sources is not Complete, the forecast run has failed and you need to report an incident. 2. If the error message refers to missing currency conversions, you need to maintain the missing conversion rate(s) in the General Ledger work center. Choose Edit Currency Conversion from the Common Tasks pane in the General Ledger work center. Enter the missing currency conversion information. Save and close the quick activity. 3. After you have corrected the error, open the Liquidity Forecast subview and choose the Forecast ID of the forecast. Choose Check and Finish to verify that the error was corrected. 4. In the Liquidity Forecast view select the Liquidity Forecast subview. The new liquidity forecast is displayed. You can drilldown by choosing a particular cash flow item, then choosing Liquidity Forecast By Transaction Details. For example, you can drill down from a supplier payments line item for a certain date to the individual expected payment transactions that the supplier payments balance consists of. 5. If you wish to include expected transactions that will affect the liquidity forecast in the future (but which are not yet captured in the integrated repositories) you can do so by creating a new forecast planning item. This improves the accuracy of the forecast. Select New Forecast Planning Item from the Common Tasks pane. When you have completed the New Forecast Planning Item quick activity choose Save , then Release . Close the quick activity. 6. If you create the forecast planning item after you have created the forecast, you must refresh the forecast before you can see the new forecast planning item in the liquidity forecast. To do so, open the Liquidity Forecast subview, choose the relevant forecast, which is denoted by the liquidity forecast ID you noted earlier, and choose Refresh Planning Items . Only forecast planning items is refreshed, and it is only possible to refresh these items on the same day when they are created. Data from payables and receivables processing is not refreshed. Thus, a refresh is not a substitute for the creation of a new liquidity forecast. The refresh may take some minutes depending on the volume of data to be processed.
Result
The updated liquidity forecast based on the new liquidity forecast run including the new forecast planning item is displayed. To view the liquidity forecast, choose the Liquidity Forecast view, then choose the Liquidity Forecast subview.
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6.9 Bank Transaction Status Notifications View

6.9.1 Quick Guide for Bank Transaction Status Notifications
In Switzerland, when a payment cannot be processed by the bank, it is possible for the bank to inform you of the details of the failed transaction using an electronic file which you upload to your system. The file contains information on why the payment failed, for example, due to insufficient funds or invalid information. On receipt of this file, you can then decide on the corrective action to take in order to resolve the failed transaction and complete the payment. In the Bank Transaction Status Notifications subview in the Liquidity Management work center, you can view the details and status of failed bank transactions through bank transaction status notifications which you receive from your bank. In these notifications, you can view all transaction details such as the file types, bank posting dates, and the reasons behind failed transactions. This enables you to view why a transaction failed and to then take corrective action before attempting to process the payment again. A bank transaction status notification can have the status Canceled or Released.
Business Background Payment Monitor Quick Guide

In the Payment Monitor view, you can track and maintain all your company's incoming and outgoing payments. You can filter the payments by date, by payee, or by status, for example, to show obsolete payments which have been canceled, returned, or rejected payments. You can create new payments, or enter payments that are created manually or outside of the system. You can also view payment details for each item. These details vary depending on the payment method and status of the payment, for example, deposit data for incoming checks, or the reason why a check was voided. For more information, see Payment Monitor Quick Guide [194]Payment Monitor Quick Guide [287].
File Management Quick Guide

You can access the Inbound Files view and Outbound Files view from the Liquidity Management work center under File Management. For more information, see File Management Quick Guide [282]
Tasks View Bank Transaction Status Notification

When the bank cannot complete a transaction, the bank creates a return file which you can upload as an inbound file, called a Bank Transaction Status Notification. In the Business Transaction Status Notification subview, you can view the details of this file. To create a bank transactions status notification file, go to the Liquidity Management work center, choose the File Management view, and then choose the Outbound Files subview.
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For more information on uploading an inbound file, see File Management Quick Guide [282] 1. Select the file and click View . 2. In the Business Transaction Status Notification screen, you can then view details about the transaction, such as transaction amount, bank posting date, and return reason. Depending on the reason outlined in the bank transaction status notification, you can perform postprocessing activities to correct the issue. To resolve returned payments, you may need to reopen payables or receivables that were already cleared. You can then include these reopened payables and receivables in the next scheduled payment run and further payment processing can be completed in the standard way. 3. Optional: To begin postprocessing, go to the Payment Monitor view. You can access the Payment Monitor view from the Payment Management work center or from the Liquidity Management work center under Payment Monitor. 1. Select the payment for postprocessing and click View All . 2. Under Actions , you have three choices for postprocessing: Select Reverse, if you need to recreate the payment, for example, because changes are needed in the customers master data.
Select Set to Not Transferred, if you would like to resend the payment to the bank without making any changes. You can then include the payment in the next file you create. This action affects your bank statement. If the rejected payment was included in a file with successfully processed payments, then there will be a discrepancy between the bank statement and the file. The bank statement will contain the lump sum of the successfully processed payments, whereas the file will show the lump sum of all payments in the batch. Select Set to In Transfer if you selected Set to Rejected by mistake.
For more information, see Payment Monitor Quick Guide [194]Payment Monitor Quick Guide [287].
Reverse Bank Transaction Status Notification

For bank transaction status notifications whose status is Released, you can undo this by selecting the bank transaction status notification and clicking Reverse . The status of the notification is now Canceled and you need to redo the upload the inbound file and make any changes you require.
Export Business Data Using Microsoft Excel

For more information about this task, see Export Business Data Using Microsoft Excel.
6.10 Reports
6.10.1 Cash Position by Payment Method Overview
Shows the petty cash balances and the balances and postings for each bank account, grouped by payment method. The amounts are based on the bank statements plus unconfirmed payments. It includes transaction details for the current
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business day, as provided by the bank statement, and gives you all the information you need to make short-term funding and investment decisions. The transaction details are derived from bank statements and payments with a value date on or before the date entered. This report displays the cash position total amounts for each of the payment methods that make up the cash position aggregated by the bank.
Prerequisites
To ensure that the cash position is as accurate as possible, check that all available bank statements are uploaded into the system.

Before running the report, you can specify the data you want to see by making value selections for variables. You must make a value selection for all mandatory variables. In the system, mandatory variables are indicated by an asterisk (*). Additional information is available for the following selected variables:
Company The system enters the company by default. Value Date The system enters the current date by default. All payments with a value date on or before this date are captured by the cash position. Bank This selects the particular bank that you may wish to view the cash position of. If you do not specify a bank, the report shows the cash position across all your company's banks. Currency This selects the currency that you wish to see the report displayed in. This is filled by default with the company currency assigned to the company during configuration. Display Currency Conversion Rate This selects the exchange rate used to calculate currency conversions in the report.
For more information on common variables, see Overview of Reports in Financial Management.

This report displays the cash position total amounts for each of the payment methods that make up the cash position. It also displays total amounts for each payment method, for example check deposits, for each bank. You can analyze the information in the cash-position report from multiple perspectives such as grouping bank transactions by bank and payment method. In addition, you can customize the report and add further criteria. The opening and closing cash balances are derived from the balance of bank accounts and cash on hand. You can view the opening and closing balances for individual banks, bank accounts and cash on hand. To show the sum from petty cash, use the quick filter for the Bank Account row to select # Not Assigned.
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Petty cash payments are confirmed automatically, and are reflected immediately in the opening and closing balances for petty cash accounts within this report. Thus, the opening and closing balances of these accounts will always be equal. The opening balance is the same as the closing balance from the previous bank statement. These bank statements may contain items that are yet to be allocated. These items are displayed under Unallocated. Usually payment allocation tasks exist for these items but the tasks are still to be processed. Checks that are not assigned to a check deposit are credited to the bank account listed in the companys check storage. Incoming cashflows (items with a positive value) are displayed under Collections. These are further divided into the categories listed and explained below.

Check Deposits are derived from deposited checks. ACH Credits are derived from the incoming side of bank-to-bank transfers where Bank Transfer is the selected payment method. Wires In are derived from the incoming part of bank-to-bank transfers where Wire Transfer is the selected payment method. Other Credits are derived from incoming credit card and direct debit payments as well as cash-to-bank transfers and incoming bills of exchange. Incoming cashflows where no payment method is selected, for example a bank payment advice, are also displayed.
Outgoing cashflows (items with a negative value) are displayed under Disbursements. These are further divided into categories that are listed and explained below.

Checks Paid are derived from outgoing checks. ACH Debits are derived from all outgoing bank transfers and the outgoing side of bank-to-bank transfers where Bank Transfer is the selected payment method. Wires Out are derived from outgoing wire transfers and the outgoing side of bank-to-bank transfers where Wire Transfer is the selected payment method. Other Debits are derived from outgoing credit card and direct debit payments as well as bank to cash transfers and outgoing bills of exchange. Outgoing cashflows where no payment method is selected, for example a bank payment advice, are also displayed. Bank and Payee/Payer Advices can display in every category for both incoming and outgoing cashflows. This depends on the payment method that was selected when the advice was created.
To analyze the data in this report:

Use the filters to manipulate the display of data in the content pane. To further analyze data in this report, you can include in the display additional characteristics from the list of characteristics not currently displayed. For this report, you can include these characteristics: Company

Bank Cash
To display further details, click the relevant item, then click the arrow to access use the context menu. You can view the Cash Position Transaction Details report by clicking with the secondary mouse button on a payment method line item, for example Check Deposits, and choosing Go To, then Transaction Details from the context menu.
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See also

6.10.2 Cash Position by Transaction Source Overview

Shows the petty cash balances and the balances and postings for each bank account, grouped by usage or origin of the payments. The amounts are based on the bank statements plus unconfirmed payments. The transaction details are derived from bank statements and payments with a value date on or before the date entered. This report displays the cash position total amounts for each of the payment methods that make up the cash position aggregated by the bank.
Prerequisites
To ensure that the cash position is as accurate as possible, check that all available bank statements are uploaded into the system.

Before running the report, you can specify the data you want to see by making value selections for variables. You must make a value selection for all mandatory variables. In the system, mandatory variables are indicated by an asterisk (*). Additional information is available for the following selected variables:
Company The system enters the company by default. Value Date The system enters the current date by default. All payments with a value date on or before this date are captured by the cash position. Bank This selects the particular bank that you may wish to view the cash position of. If you do not specify a bank, the report shows the cash position across all your company's banks. Currency This selects the currency that you wish to see the report displayed in. This is filled by default with the company currency assigned to the company during configuration. Display Currency Conversion Rate This selects the exchange rate used to calculate currency conversions in the report.
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This report shows an analysis of the cash position total amounts for each transaction source, such as Customer Receipts, Supplier Payments, Tax Payments and so on. It also displays these particular details for each bank and if required, each bank account and petty cash account. The opening and closing cash balances are derived from the balance of bank accounts and cash on hand. You can view the opening and closing balances for individual banks, bank accounts and cash on hand. To show the sum from petty cash, use the quick filter for the Bank Account row to select # Not Assigned.
Petty cash payments are confirmed automatically, and are reflected immediately in the opening and closing balances for petty cash accounts within this report. Thus, the opening and closing balances of these accounts will always be equal. The opening balance is the same as the closing balance from the previous bank statement. These bank statements may contain items that are yet to be allocated. These items are shown under Unallocated. Usually payment allocation tasks exist for these items but the tasks are still to be processed. Checks that are not assigned to a check deposit are credited to the bank account listed in the companys check storage. All items with a positive value are displayed under Collections. These are further divided into the categories listed and explained below.
Customer Receipts are derived from customer payments such as a credit card payment, direct debit payment or a check, bank payment advices and remittance advices sent to you by your customers. Intra/Intercompany Receipts are derived from payments, bank payment advices and remittance advices sent between your companies. Unallocated displays all the payments that have an open payment allocation task. These items are not yet allocated to an open trade or tax receivable item. The purpose of the payment is as yet undetermined in the system. Other Receipts are derived supplier payments.
All items with a negative value are displayed under Disbursements. These are further divided into categories that are listed and explained below.
Supplier Payments are derived from supplier payments, such as a check or bank transfer, bank payment advices and remittance advices that you sent to your supplier. Employee Expenses are derived from travel expense report payments. Tax Payments are derived from tax payments. Intra/Intercompany Payments are derived from payments, bank payment advices and remittance advices sent between your companies. Unallocated displays all the payments that have an open payment allocation task. These items are not yet allocated to an open trade or tax payable item. The purpose of the payment is as yet undetermined in the system. Other Payments are derived from customer payments.
Use the filters to manipulate the display of data in the content pane.
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To further analyze data in this report, you can include in the display additional characteristics from the list of characteristics not currently displayed. For this report, you can include these characteristics: Company

Bank Cash
To display further details, click the relevant item, then click the arrow to access use the context menu. You can view the Cash Position Transaction Details report by clicking on a transaction source with the secondary mouse button, for example Customer Receipts, and selecting Go To, then Transaction Details from the context menu.
See also

6.10.3 Liquidity Forecast by Liquidity Level Overview

Shows the payments expected in the middle term, for example, the next ninety working days, for each bank account grouped by liquidity level. You first need to have performed a liquidity forecast run to determine the liquidity forecast data. This is the default setting. If you wish to view the forecast for longer or shorter periods you can change this setting in fine tuning. The report aggregates and analyzes expected collections and disbursements by liquidity level to support investment and financing decisions. The various liquidity levels show how liquid or close to cash your companys assets and liabilities are by displaying the current stage of a liquidity item in the transaction lifecycle.
Views
Liquidity Forecast by Liquidity Level (Default) Shows the liquidity levels for each transaction source for the entire company and each bank, in the selected time period. This is the default view. Liquidity Forecast by Liquidity Level Daily Shows the same information as above except the calendar week and month for each day are not displayed. Liquidity Forecast by Liquidity Level Weekly Shows the same information as above except the transaction sources and relevant amounts are displayed for each week of the selected time period. Liquidity Forecast by Liquidity Level Monthly Shows the same information as above except the transaction sources and relevant amounts are displayed for each month of the selected time period. Liquidity Forecast by Liquidity Level Weekly - Overdue
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Shows all overdue trade and tax payables and receivables items as well as all open payment items (payments that are not cleared). An item is overdue when the expected payment date is previous to the forecast creation date. The overdue payables and receivables items are displayed under Receivables/Payables. The open payment items are displayed under Payments.
Prerequisites
The report is based on the data collected by the liquidity forecast run. You must create a liquidity forecast before using the report. For more information on how to do so see Create and Refresh the Liquidity Forecast You should perform the liquidity forecast only after the data from the Payables, Receivables, Tax Management and Payment Management work centers has been processed, that is, at the end of the working day. You should also ensure that all available bank statements are uploaded into the system. This ensures that the liquidity forecast is as accurate as possible.

Before running the report, you can specify the data you want to see by making value selections for variables. You must make a value selection for all mandatory variables. In the system, mandatory variables are indicated by an asterisk (*). Additional information is available for the following selected variables: The most important variables are explained below.
Company The system enters the company by default. Liquidity Forecast ID Select the particular liquidity forecast on which the report will be based. This is filled by default with the ID of the most recently created forecast. If you select a lower forecast ID you can display historical forecast data. Time Period Select the time period that you want to analyze. You cannot exceed the maximum time period as defined in the Forecast profile during business configuration. You can review and change the liquidity forecast profiles in the Business Configuration work center in the Activity List view. In the Fine Tune step, choose Cash Flow Management > Liquidity Forecast Profiles.
Display Currency This selects the currency that you wish to see the report displayed in. This is filled by default with the company currency assigned to the company during configuration. Display Currency Conversion Rate This selects the exchange rate used to calculate currency conversions in the report.

This report shows an analysis of expected cash inflows and outflows for the selected time period. It aggregates and analyzes expected collections and disbursements by liquidity level, to support investment and financing decisions. The system groups the report in two categories:
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Opening Cash Balance Payments This category displays all incoming and outgoing payments using every payment method. These funds are usually more liquid (closer to cash) than the due items displayed under Receivables/Payables. This is because they are usually closer to the end of the transaction lifecycle. For example a bank transfer, displayed under Payments, is more likely to be cash before an Invoice received from a supplier, displayed under Receivables/Payables. Receivables/Payables This displays all payables and receivables items, for example invoices. Open tax items from trade receivables and payables are also included. These transactions usually have a lower liquidity level than Payments because they are closer to the beginning of the transaction lifecycle.
Each of these categories are further divided as below:
Customers displays all payments and notifications of payments received from your customers. These can include bank transfers, checks, remittance advices, credit card payments, and direct debits. Suppliers displays all payments and notifications of payments sent to your suppliers. These can include bank transfers, remittance advices, credit card payments, and direct debits. Employees displays all payments made to employees. Tax displays all payments made to and received from a tax authority. Intra/Intercompany displays all payments made between and within your companies. For example, bank-to-bank transfers are included here. Unallocated displays all the funds that have an open payment allocation task. These items are not yet allocated to an open trade or tax payable or receivable item. The purpose of the payment is as yet undetermined in the system.
For more detailed information about how the liquidity process gathers data and calculates the dates for the forecast see Liquidity Forecast. To analyze the data in this report:

Use the filters to manipulate the display of data in the content pane. To further analyze data in this report, you can include in the display additional characteristics from the list of characteristics not currently displayed. For this report, you can include these characteristics: Bank Account ID

Company Value Date Week Value Date Month
To display further details, click the relevant item, then click the arrow to access use the context menu. You can view the Liquidity Forecast Transaction Details report by clicking with the secondary mouse button on a payment method line item, for example Check Deposits, and choosing Go To, then Transaction Details from the context menu.
See also

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Although the report reads the forecast data in real time, the forecast itself is created from the Liquidity Forecast Run that you create and schedule in the Liquidity Management work center. For more information see Liquidity Forecast.
6.10.4 Liquidity Forecast by Payment Method Overview

The Liquidity Forecast by Payment Method report displays expected cash inflows and outflows for the next twenty working days. This is the default setting. If you wish to view the forecast for longer periods you can change this setting in fine tuning. The report aggregates and analyzes expected collections and disbursements by payment method to support investment and financing decisions.
Views
Liquidity Forecast by Payment Method Shows the details of the method of payment, for example ACH credits, used by each transaction source, for example a bank, in the selected time period. This is the default view. Liquidity Forecast by Payment Method Daily Shows the same information as above except the payment methods and relevant amounts are displayed for each day of the selected time period. Liquidity Forecast by Payment Method Weekly Shows the same information as above except the payment methods and relevant amounts are displayed for each week of the selected time period. Liquidity Forecast by Payment Method Monthly Shows the same information as above except the payment methods and relevant amounts are displayed for each month of the selected time period.
Prerequisites
The report is based on the data collected by the liquidity forecast run. You must create a liquidity forecast before using the report. For more information on how to do so see Create and Refresh the Forecast. You should perform the liquidity forecast only after the data from the Payables, Receivables, Tax Management and Payment Management work centers has been processed, that is, at the end of the working day. You should also ensure that all available bank statements are uploaded into the system. This ensures that the liquidity forecast is as accurate as possible.

Before running the report, you can specify the data you want to see by making value selections for variables. You must make a value selection for all mandatory variables. In the system, mandatory variables are indicated by an asterisk (*).
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Additional information is available for the following selected variables: The most important variables are explained below.
Company The system enters the company by default. Liquidity Forecast ID Select the particular liquidity forecast on which the report will be based. This is filled by default with the ID of the most recently created forecast. If you select a lower forecast ID you can display historical forecast data. Time Period Select the time period that you want to analyze. You cannot exceed the maximum time period as defined in the Forecast profile during business configuration. You can review and change the liquidity forecast profiles in the Business Configuration work center in the Activity List view. In the Fine Tune step, choose Cash Flow Management > Liquidity Forecast Profiles.

The data in the report is initially displayed in table format. You can also display the report as a chart. This report shows an analysis of expected cash inflows and outflows for the selected time period. It aggregates and analyzes expected collections and disbursements by payment method, to support investment and financing decisions. All incoming cashflows (items with a positive value) are displayed under Collections. These are further divided into the categories listed and explained below.

Incoming checks are derived from deposited checks. ACH Credits are derived from the incoming side of bank-to-bank transfers where Bank Transfer is the selected payment method. Wires In are derived from the incoming side of bank-to-bank transfers where Wire Transfer is the selected payment method. Other Credits are derived from incoming credit card and direct debit payments as well as cash-to-bank transfers and incoming bills of exchange. Incoming cashflows, that result from open trade receivables items where no payment method is assigned, are also displayed.
All outgoing cashflows (items with a negative value) are displayed under Disbursements. These are further divided into categories that are listed and explained below.

Checks Paid are derived from outgoing checks. ACH Debits are derived from all outgoing bank transfers and the outgoing side of bank-to-bank transfers where Bank Transfer is the selected payment method. Wires Out are derived from outgoing wire transfers and the outgoing side of bank-to-bank transfers where Bank Transfer is the selected payment method.
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Other Debits are derived from outgoing credit card and direct debit payments as well as bank to cash transfers and outgoing bills of exchange. Outgoing cashflows where no payment method is selected, for example a bank payment advice, are also displayed. Forecast Planning Items and Bank Payment Advices that are posting relevant can display in every category. This depends on the payment method that was selected when the advice was created.
For more detailed information about how the liquidity process gathers data and calculates the dates for the forecast see Liquidity Forecast. To analyze the data in this report:

Company
To display further details, click the relevant item, then click the arrow to access use the context menu. You can view the Liquidity Forecast - Transaction Details report by clicking with the secondary mouse button on a payment method line item, for example Check Deposits, and selecting Go To, then Liquidity Forecast Transaction Details from the context menu.
See also

Reports View Overview of Reports in Financial Management Overview of Data Sources in Financial Management Although the report reads the forecast data in real time, the forecast itself is created from the Liquidity Forecast Run that you create and schedule in the Liquidity Management work center. For more information see Liquidity Forecast.
6.10.5 Liquidity Forecast by Transaction Currency Overview

Shows the payments expected in the middle term, for example, the next ninety working days, for each bank account grouped by transaction currency. You first need to have performed a liquidity forecast run to determine the liquidity forecast data. This is the default setting. If you wish to view the forecast for longer periods you can change this setting in fine tuning. The report analyzes the balances by transaction currency to support currency management decisions.
Views
Liquidity Forecast by Transaction Currency (Default)
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Shows the total amount for each transaction currency in the selected liquidity forecast for the selected time period. The results are presented for each day of the selected time period. The relevant calendar week and month for each day is also displayed. This view is the default view of the report.
Liquidity Forecast by Transaction Currency Daily Shows the same information as above except the calendar week and month for each day are not displayed. Liquidity Forecast by Transaction Currency Weekly Shows the same information as above except it displays the total amounts for each transaction currency for each week of the selected time period. Liquidity Forecast by Transaction Currency Monthly Shows the same information as above except it displays the total amounts for each transaction currency for each month of the selected time period.
Prerequisites
The report is based on the data collected by the liquidity forecast run. You must create a liquidity forecast before using the report. You should perform the liquidity forecast only after the data from the Payables, Receivables, Tax Management and Payment Management work centers has been processed, that is, at the end of the working day. You should also ensure that all available bank statements have been uploaded into the system. This ensures that the liquidity forecast is as accurate as possible.

Company The system enters the company by default. Liquidity Forecast ID This specifies the particular liquidity forecast that you want to see the transaction currency details of. This is filled by default with the most recently created forecasts ID. If you select a lower forecast ID you can display historical forecast data. Time Period Select the time period on which the data is based. You cannot exceed the maximum time period as defined in the Forecast Profile during business configuration. You can review and change the liquidity forecast profiles in the Business Configuration work center in the Activity List view. In the Fine Tune step, choose Cash Flow Management > Liquidity Forecast Profiles.
Transaction Currency Choose the currency that you would like to view the liquidity forecast of. The transaction currency is the currency that payment was made in.
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The data in the report is initially displayed in table format. You can also display the report as a chart. This report shows an analysis of the expected cash in- and outflows by transaction currency for the selected time period. It displays aggregated balances by transaction currency, over future time periods, resulting from trade payables and receivables, tax payables and receivables, all payment items, and manually entered forecast planning items. To analyze the data in this report:

Use the filters to manipulate the display of data in the content pane. To further analyze data in this report, you can include in the display additional characteristics from the list of characteristics not currently displayed. For this report, you can include these characteristics: Liquidity Level This shows how liquid or near to cash the transactions are. It shows the current stage of the item in the transaction lifecycle. For forecast planning items, this is derived from the Transaction Progress field.
Transaction Source This shows the origin of the liquidity item. For example, a customer or a supplier. Debit/Credit Displays the incoming and outgoing cash flows.
To display further details, click the relevant item, then click the arrow to access use the context menu. You can view the Liquidity Forecast - Transaction Details report by clicking with the secondary mouse button on a transaction currency line item, for example Great British Pound, and choosing Go To, then Liquidity Forecast Transaction Details from the context menu.
See also

Reports View Overview of Reports in Financial Management Overview of Data Sources in Financial Management Although the report reads the forecast data in real time, the forecast itself is created from the Liquidity Forecast Run that you create and schedule in the Liquidity Management work center. For more information see Liquidity Forecast
6.10.6 Liquidity Forecast by Transaction Source Overview

Shows the payments expected in the middle term, for example, the next ninety working days, grouped by purpose or origin. You first need to have performed a liquidity forecast run to determine the liquidity forecast data. This is the default setting. If you wish to view the forecast for longer or shorter periods you can change this setting in fine tuning. The report aggregates and analyzes expected collections and disbursements by transaction source to support investment and financing decisions.
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Views
Liquidity Forecast by Transaction Source (Default) Shows the liquidity forecast for the next four days per transaction source, for example customer receipts. The results are broken down further per individual bank. The relevant calendar week and month for each day is also displayed. This is the default view for this report. Liquidity Forecast by Transaction Source Daily Shows the same information as above except the calendar week and month for each day are not displayed. Liquidity Forecast by Transaction Source Weekly Shows the same information as above except details are provided for each week of the selected time period. Liquidity Forecast by Transaction Source Monthly Shows the same information as above except details are provided for each month of the selected time period. Liquidity Forecast by Transaction Source Weekly Overdue Shows all overdue trade and tax payables and receivables items as well as all open payment items (payments that are not cleared). An item is overdue when the expected payment date is previous to the forecast creation date. The overdue payables and receivables items are displayed under Receivables/Payables. The open payment items are displayed under Payments.
Prerequisites
The report is based on the data collected by the liquidity forecast run. You must create a liquidity forecast before using the report. You should perform the liquidity forecast only after the data from the Payables, Receivables, Tax Management and Payment Management work centers has been processed, that is, at the end of the working day. You should also ensure that all available bank statements are uploaded into the system. This ensures that the liquidity forecast is as accurate as possible.

Company The system enters the company by default. Liquidity Forecast ID Select the particular liquidity forecast on which the report will be based. This is filled by default with the ID of the most recently created forecast. If you select a lower forecast ID you can display historical forecast data. Time Period Select the time period that you want to analyze.
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You cannot exceed the maximum time period as defined in the Forecast profile during business configuration. You can review and change the liquidity forecast profiles in the Business Configuration work center in the Activity List view. In the Fine Tune step, choose Cash Flow Management > Liquidity Forecast Profiles.

The data in the report is initially displayed in table format. You can also display the report as a chart. This report shows an analysis of expected cash in- and outflows by transaction source for the selected time period. It displays opening and ending balances, collections, disbursements, and net flows over future time periods. These can result from trade payables and receivables, tax payables and receivables, all payment items, and manually entered forecast planning items. Incoming cashflows (items with a positive value) are displayed under Collections. These are further divided into the categories listed and explained below.
Customer Receipts are derived from customer invoices and payments from customers such as a credit card payment or check. Intra/Inter company Receipts are derived from forecast planning items that are not expired as well as invoices and payments between your companies. Tax Receipts are derived from tax receivables and the tax declaration, if this has a positive value. Unallocated displays all the payments that have an open payment allocation task. These items are not yet allocated to an open trade or tax receivable item. The purpose of the payment is as yet undetermined in the system. Other Receipts are derived from supplier credit memos and payments.
Outgoing cashflows (items with a negative value) are displayed under Disbursements. These are further divided into categories that are listed and explained below.

Supplier Payments are derived from supplier invoices and payments to a supplier such as check or bank transfer. Employee Expenses are derived from travel expense reports and the payment of travel expense reports. Intra/Intercompany Payments are derived from invoices and payments between your companies. Tax Payments are derived from tax payables and the tax declaration, if this has a negative value. Unallocated displays all the funds that have an open payment allocation task. These items are not yet allocated to an open trade or tax payable item. The purpose of the payment is as yet undetermined in the system. Other Payments are derived from customer credit memos and payments. Forecast Planning Items can display in every category for both incoming and outgoing payments. This depends on the depending on the assigned transaction source
For more detailed information about the liquidity forecast see Liquidity Forecast. To analyze the data in this report:
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Company Expected Value Date Value Date Week Value Date Month
To display further details, click the relevant item, then click the arrow to access use the context menu. You can view the Liquidity Forecast - Transaction Details report by clicking with the secondary mouse button on a transaction source line item, for example Check Deposits, and choosing Go To, then Liquidity Forecast Transaction Details from the context menu.
See also

Reports View Overview of Reports in Financial Management Overview of Data Sources in Financial Management Although the report reads the forecast data in real time, the forecast itself is created from the Liquidity Forecast Run that you create and schedule in the Liquidity Management work center. For more information see Liquidity Forecast.
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7 Tax Management
7.1.1 Tax Management Work Center
The Tax Management work center supports you in creating the following tax returns:

Advance Returns for VAT and Annual VAT Returns EC Sales Lists Withholding Tax Returns (Note: This tax return type is not relevant for Germany.) Sales and Use Tax Returns (US) Corporate income tax, employment tax, trade tax, or other types of use tax are not considered in the Tax Management work center.
The system selects the tax items to be reported for the selected reporting period in the tax return run, generates a tax return, and determines the tax payable or tax receivable to be cleared. It does this based on the configuration settings, business transactions, and manual tax entries. The tax returns in the system can be used as a template for creating and sending your tax return forms or tax files. (Note: It is not possible to electronically submit tax data from the system.) In addition, you can enter tax prepayments or the payment of a tax payable or receivable that was determined in a tax return relevant for payment. To obtain an overview of the open or reported tax items of a selected reporting period, you can use the various reports provided: For more information about the Tax Management work center, see Help SAP Business ByDesign Library Business
Areas Financial Management Cash Flow Management Tax Management . You can find an overview of the views available in the Tax Management work center in the following quick guides: Quick Guide for Tax Authorities [363] Manual Tax Entries:

Quick Guide for VAT / Sales Tax Entries [365] Quick Guide for Sales and Use Tax Entries (US) [364] Quick Guide for Withholding Tax Base Amount Entries (US) [367]
Tax Return Runs:

Quick Guide for VAT Return Runs [391] Quick Guide for Sales and Use Tax Return Runs (US) [388] Quick Guide for EC Sales List Runs [393] Quick Guide for Withholding Tax Return Runs (US) [390]
Tax Returns:

Quick Guide for VAT Returns [372] Quick Guide for Sales and Use Tax Returns (US) [368] Quick Guide for EC Sales Lists [374]
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SAP Business ByDesign FP3.5 Tax Management
Quick Guide for Withholding Tax Returns (US) [372]
Quick Guide for Tax Payments [382]
See Also
Example Scenario for Tax Returns [316] Example Scenario for Tax Payments [325] Example Scenario for Tax Entries [326]
7.1.2 Tax Returns

7.1.2.1 Tax Register
The system uses the tax register to continuously store all tax items and tax adjustment items that have been entered automatically as a result of tax-relevant business transactions or that have been entered manually. The system uses the data in the tax register to create your tax returns. Each tax item in the tax register represents a tax receivable or a tax payable between your company and the tax authority. The reports Open VAT / Sales Tax Items, Reported VAT / Sales Tax Items and All VAT / Sales Tax Items are based on the data in the tax register. The tax register uses the Reported indicator to categorize the tax items into reported and open tax items. The system uses this indicator to check whether a tax item is relevant for a tax return yet to be submitted. If the Reported status is set for a tax item, that tax item is not included in the tax return run. For each tax item, the journal entry type, journal entry ID, business partner, tax base amount, transaction date, and tax due date [319] are defined. (Note: The system does not store the gross amount for each tax item; it only does so at the journal entry level) In contrast to the tax subledger, no tax entries or posting data are considered in the tax register. We strongly recommend against making tax entries directly in the General Ledger work center. These entries are not entered in the tax register. You otherwise you have to manually add the tax items posted in the general ledger in the return forms for submitting your tax returns to the tax authority. Tax Subledger The tax subledger is used to explain the tax G/L accounts in the general ledger. The tax subledger includes, in addition to the valuated and posted tax items, other tax data and information about the underlying tax-relevant business transactions. You find an overview of the tax entries in the General Ledger work center in the Tax Line Items report.
7.1.2.2 Tax Codes and Tax Events
Tax codes represent specific tax use cases. You enter tax codes when you record business transactions (such as customer invoices, manual tax entries). Using the tax determination logic stored in the system, the system derives the tax type, tax event, and tax rate type (such as standard tax rate or reduced tax rate) from the tax code and determines the correct tax amount. The tax event determines the field in the tax return form in which the tax item (tax amount or tax base amount) is to be displayed.
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This document contains text that is relevant for Austria and Germany. To ensure that the system displays the correct text, select Personalize My Settings. Select Onscreen Help, and, under Country, choose the relevant country. Save your settings and logout to ensure the changes are made.
Configuration Settings
In addition to the tax codes that are predefined in the system, you can create other tax codes and assign tax events predefined by SAP. The settings for this can be viewed in the fine-tuning settings under Services Define Tax Codes . Taxes on Goods and
You can view the assignments of tax events and tax rate types to the form fields in the fine-tuning settings under Tax Returns for Goods and Services. Here you can make other assignments.
For more information, see Tax Determination [342].
7.1.2.3 Example Scenario for Tax Returns
This example scenario describes a procedure that covers the typical steps from entering a business transaction relevant for taxes to creating a tax return. In our example, you create a VAT return for the reporting period October 1 to October 31, 2010: 1. Enter Business Transactions: You have entered invoice documents in the Customer Invoicing work center. The system applies the stored tax determination logic to automatically determine the tax amounts from the tax data, the relevant tax event, and the tax rate, and then posts these tax amounts in the general ledger. At the same time, the tax items relevant for the tax return were transferred to the tax register. 2. Checks before the Tax Return Run: We strongly recommend that you perform the following checks regularly (especially during quarter-end and year-end closing) and during system implementation, system changeover, and after changes to the system settings. 1. Run the VAT / Sales Tax Reconciliation report. This report compares the tax data relevant for the reporting period in the tax register with the tax entries in the general ledger and analyzes whether any technically related differences have occurred. 2. Check whether open tax items exist with a posting date after the reporting period. You avoid any balance differences in the tax accounts with this check. To do this, choose the Open VAT / Sales Tax Items report and enter the following time periods: Tax Due Date: 1.1.2010 31.10.2010
Posting Date: 1.11.2010 31.12.9999
3. Check whether open tax items exist with a tax due date after the reporting period. You avoid any balance amounts in the tax accounts with this check. To do this, choose the Open VAT / Sales Tax Items report and enter the following time periods: Tax Due Date: 1.11.2010 31.12.9999
Posting Date: 1.1.2010 31.10.2010
4. Determine the tax amount to be cleared for the reporting period. Choose the Open VAT /Sales Tax Items report and enter the time period January 1, 2010 October 31, 2010 for the tax due date.
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5. Check which tax amounts were manually overridden and posted in the source documents. Choose the VAT / Sales Tax Calculation Details report and enter the month October under Proposed Posting Date. The report calculates the tax amounts using the items in the source documents and compares them with the tax amounts that were actually posted. If a tax amount was manually overridden, you can navigate directly in the report to the journal entry of the relevant tax amount and navigate further to the source document. 3. Execute a Tax Return Run: In the Tax Management work center, you create a tax return with a tax return run. The tax items relevant for the reporting period are selected automatically from the tax register and then summarized and assigned on the basis of the fields affected in the tax form. Note: To make sure that all open tax items are taken into account, choose a period from January 1 of the current calendar year for the run. You can display the open tax items in the Open VAT / Sales Tax Items report. 4. Check the Tax Return and Send Tax Data: Select the tax return created in the system and check the correctness of the tax data. To do this, choose Preview and Details on the Tax Return tab. 5. Release a Tax Return: Once you have sent the tax data to the tax authority, select the tax return in the system and then Release. This results in the following: The status of the tax return in the system is changed from In Preparation to Reported.
The relevant tax items obtain the status Reported in the tax register and are now displayed in the Reported VAT / Sales Tax Items report. The balance of the VAT / sales tax and input tax account is transferred to the tax payable account.
See Also
Example Scenario for Tax Payments [325]
7.1.2.4 Status of Tax Returns Overview

Here is an overview of the changes to the status of tax returns following various actions:
New Status of the Tax Return Make a tax payment (and release the payment in the Payment Management work center)
Status of the Tax Return
Permitted Actions:
Submit tax return to the tax authority In Preparation In Preparation Reported Canceled X
Cancel a tax return
Create a correction return
Delete a tax return
Cancel a tax payment (in the Payment Management work center) Reported
X X
(n/a) Canceled (n/a)
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Status of the Tax Return
Permitted Actions: Make a tax payment (and release the payment in the Payment Management work center) X X X X
New Status of the Tax Return
Submit tax return to the tax authority Reported Reported Completed Completed
Cancel a tax return
Create a correction return
Delete a tax return
Cancel a tax payment (in the Payment Management work center) Completed Replaced Replaced Reported (Status of the tax payment: Canceled
Additional Notes
You can only delete tax returns that have the In Preparation status because no tax items have yet been updated in the tax register and none have yet been posted. You can use a correction run to create an additional correction return for an existing correction return. The Completed status is assigned automatically once the tax return has been reported and the tax payment has been requested and released.
See Also
Example Scenario for Tax Returns [316]
7.1.2.5 Generic Tax Return As Tax Return Type
You can use the generic tax return to report tax items and to initiate tax payments that are not considered in your regular tax returns. The system does not cover all legal tax rules of your country by generic tax returns. Additional steps to submit a valid and correct tax return have to be performed outside the system.
Details
During a tax return run of a generic tax return, all tax items that are not considered in a regular tax return of the respective country get the status Reported in the tax register. In addition, the system performs all related postings to clear the input and output tax accounts against a tax liability account. For countries that are either not supported by the system or are not included in the scope of your business solution, the system selects all open tax items of the country of the tax authority during the tax return runs for generic tax returns. Tax return types for generic tax returns are provided for the following countries:
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Bulgaria Finland Hungary Ireland Portugal Romania The generic tax return does not provide a workaround for the input tax refund procedure within the European Community. The generic tax return is applied to tax items within a country of the respective tax authority. Compared to this, the input tax refund procedure allows to claim foreign taxes from a local tax authority. Furthermore, the generic tax return does not support prepayments, tax reporting groups, or withholding taxes.
The generic tax return is a payment relevant tax return type. You can initiate and post an outgoing or an incoming tax payment for the tax amount calculated by the generic tax return. For more information, see Quick Guide for Tax Payments [382]. For a generic tax return you can create an amended tax return as with the regular tax returns. For more information, see Correction Run and Amended Tax Return. The function to carry forward a receivable from the tax authority is available in the generic tax return. This is only relevant in the United States. For more information see Tax Due Date of Tax Items [319]. Carry forward must be activated in the tax authority master data. For more information see Quick Guide for Tax Authorities [363].
Prerequisites
Before creating generic tax returns make sure that master data is defined for your tax authority. For more information, see Quick Guide for Tax Authorities [363]. Note that you have to define a tax return arrangement for tax return type 999 Tax Return.
Create a Generic Tax Return

Navigate to the Tax Management work center, select the respective view under Periodic Tasks, choose New Tax Return Run , and enter the required data. You can find exemplary information in the Tasks section of the documents Quick Guide for VAT Return Runs [391] and Quick Guide for VAT Returns [372].
7.1.2.6 Tax Due Date of Tax Items
For each tax-relevant transaction, the system creates the related tax item(s) and determines the tax due date for each tax item. The tax due date is used to specify the reporting period in which a tax item is submitted to the tax authority with the tax return. In the system default settings, the tax due date usually corresponds to the posting date of the underlying business transaction. There are the following exceptions:
If you enter a Deviate Tax Due Date when entering customer invoices, supplier invoices, and manual VAT entries, this date is then used as the tax due date. For VAT prepayments, the system always uses the clearing date as the tax due date. The clearing date determines the advance return for VAT that is used to clear the prepayment.
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If carry forward has been activated for a tax return type in the tax authority master data, as is usual in the US, the tax receivable resulting from a tax return is cleared with the subsequent tax return. In these cases, the system sets the tax due date to the start of the next reporting period by default.
Alternatively, you can specify that the tax due date can differ from the posting date. The setting required for this is in the business configuration in the activity named Tax Due Date Determination. If you change the standard setting, the system automatically determines the tax due date using the derivation rules implemented in the system.
Changing the standard setting can lead to inconsistencies during the periodic reconciliation of tax items with the tax accounts. We therefore strongly recommend that you only make this setting after a previous thorough inspection. If you do decide to change the standard settings, we recommend that you refrain from doing so during the current fiscal year. The change does not affect tax items already entered and posted.
Determining the Tax Due Date for Selected Transactions After Changing the Standard Setting
Customer Invoice and Customer Credit Memo If you have not specified a tax due date in the Customer Invoicing work center for a customer invoice or a customer credit memo, the system applies the Invoice Date as the tax due date by default. Supplier Invoice and Supplier Credit Memo If, in the Supplier Invoicing work center, you have not specified a Deviate Tax Due Date for a supplier invoice or supplier credit memo but you have specified a posting date, the posting date is applied as the tax due date. If you have not specified either a Deviate Tax Due Date or a Posting Date, the system applies the Invoice Date as the tax due date. The Receipt Date is not relevant for determining the tax due date. Incoming direct debit: The system uses the Document Date as the tax due date. Outgoing bank transfer: The system uses the Expected Bank Value Date as the tax due date.
If you have specified a Bank Processing Date, the system uses it to derive the Expected Bank Value Date. Otherwise, the system applies the day after the Document Date. In the case of a Wire Transfer, the Expected Bank Value Date is derived - unchanged - from the Document Date. In all cases, the system applies the factory calendar stored.
Bank statement: In the case of an incoming or outgoing payment that was entered by means of a bank statement in the Liquidity Management work center and that can be cleared against an open item (such as an incoming bank transfer and an outgoing credit memo), the system uses the Statement Date as the tax due date. For more information, see Bank Statements [253].

You have to enter bank statements in the system on a daily basis. If the date on a bank statement differs from the value date of an item, you have to manually post a tax correcting entry for that item in the Tax Management work center under Manual Tax Entries.
Check: In the case of an incoming check, the system uses the Posting Date as the tax due date. In the case of an outgoing check, the system uses the Date of Issue as the tax due date.
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If the date on which the check leaves the control of the company differs from the Date of Issue, you have to make a tax correcting entry in the Tax Management work center under Manual Tax Entries. . Cash payment: In the case of an incoming cash payment, the system uses the Receipt Date as the tax due date. In the case of an outgoing cash payment, the system uses the Payment Date as the tax due date. Travel and expenses: In the case of an expense report, the system uses the Posting Date as the tax due date. Manual clearing: When an open item undergoes manual payment clearing in the Receivables or Payables work centers, the system uses the Document Date as the tax due date. Note that, with the standard settings, the system uses the current date as the document date. Debit/credit: In the case of a debit or credit entered in the Receivables work center by means of the Customer Account Monitor [133], the system uses the posting date as the tax due date. Tax prepayment: In the case of a tax prepayment performed in the Tax Management work center, the system uses the Clearing Due Date as the tax due date. Care (USA): If a tax return (such as sales and use tax return) produces a carryforward, the tax due date is the next day after the end of the reporting period for that tax return. Manual tax entry: In the case of a manual tax entry in the Tax Management work center, you explicitly specify the tax due date. With the standard settings, the system proposes the current date by default. Cancellation: In the case of reversals, the standard system applies the posting date of the reversal transaction as the tax due date. If, however, the posting date specified falls before the tax due date of the original tax item, the system applies the tax due date of the original tax item as the tax due date.
7.1.2.7 Tax Reporting Overview

Companies must levy taxes on their products and services and they have to pay and report the collected tax to the tax authority periodically. SAP business ByDesign helps you to file your returns for the various tax types in accordance with the legal requirements of the country in which your company is located. This document contains text that is region specific. To ensure that the system displays the correct text, select Personalize My Settings . Select Onscreen Help and, under Country, choose the relevant country. Save your settings and logout to ensure these changes are made.
7.1.2.8 Subsequent Reporting of Tax Items Overview

You have three options for subsequently reporting open tax items to your tax authority:
You can create an amended tax return and specify the same reporting period for the correction run as that of the tax return to be amended. You create an amended tax return for the tax return relating to the reporting period 03/01 through 03/31. You enter the reporting period 03/01 through 03/31 for the correction run (see also: Correction Run and Amended Tax Return). You include the open tax items from previous reporting periods in your next VAT return (such as your advance return for VAT in Germany).
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You create a tax return for March and want to include all the previous open tax items of the current year. You therefore enter 01/01 through 03/31 for the tax return run.
You take into account existing open tax items when you create your normal annual tax return.
7.1.2.9 Chamber Contribution Fee Calculation - Austria
This document contains text that is relevant for Austria. To ensure that the system displays the correct text, select Personalize My Settings . Select Onscreen Help and, under Country, choose Austria. Save your settings and logout to ensure these changes are made.
7.1.2.10 Import Of Services India
This document contains text that is relevant for India only. To ensure that the system displays the correct text, Personalize My Settings . Select Onscreen Help and, under Country, choose India. Save your select settings and logout to ensure these changes are made.
7.1.2.11 Challan Processing - India
This document contains text that is relevant for India only. To ensure that the system displays the correct text, select Personalize My Settings . Select Onscreen Help and, under Country, choose India. Save your settings and logout to ensure these changes are made.
7.1.2.12 Purchase of Capital Goods - India 7.1.2.12
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7.1.2.13 Prepayment of service tax - india
7.1.2.14 prepayment of VAT - India
7.1.2.15 Separate payment of CST and VAT - India
7.1.2.16 Service Tax Return - India
7.1.2.17 Tax ABATEMENT INDIA
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7.1.2.18 Withholding Tax - India
7.1.2.19 Import of goods - India
7.1.2.20 Stock Transfer - India
7.1.2.21 Unregistered Dealer Purchase - India
7.1.2.22 withholding tax 27Q - INDIA
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7.1.3 Tax Payments

7.1.3.1 Example Scenario for Tax Payments
This example scenario takes you through the typical steps of clearing a tax payable due to a tax return. 1. Check whether the tax payable in the reported tax return matches the value displayed in the report Reported VAT / Sales Items. 2. Select the tax return and click Pay . If necessary, change the payment date and posting date proposed by the system and choose OK . The payment is assigned an internal number and the status In Preparation. 3. If the data of the payment is consistent, a task Approve Tax Payment is sent to the manager's worklist 4. If the manager approves this payment, the system automatically performs the following actions: The payment is assigned the status Released and is posted to the appropriate tax account.

A journal entry is generated and the journal entry ID is assigned to the payment. The tax return has the status Completed.
5. The amount to be transferred to the tax authority is now in Payment Management under Payment Monitor with the status Ready for Transfer. For more information, see Quick Guide for Tax Payments [382].
7.1.3.2 Status of Tax Payments
Here is an overview of the changes to the status of internally and externally-initiated tax payments depending on performed actions: Changes to the Status of Internally-Initiated Tax Payments
Action Status (Tax Management work center) Pay In Approval Action Status (Managing My Area work center) Send Back for Revision In Preparation Action (Tax Management work center) Submit Status
In Approval
In Preparation In Approval Approve Released
Discard Reverse
Release Discarded Canceled
Changes to the Status of Externally-Initiated Tax Payments

Action (Payment Management or Liquidity Management work center) Release* Status Action (Tax Management work center) Status Action Status (Managing My Area work center) Action (Tax Management work center) Status
In Preparation
Accept* Submit*
In Approval
Approve
Released
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Released In Approval Send Back for In Preparation Revision
Reverse
Canceled
Cancel*
Release Discarded Canceled
* You perform this action by selecting the relevant task from the worklist. Note: For selected incoming and outgoing payment types that are entered in the Payment Management or Liquidity Management work centers, you can also optionally define in the configuration settings whether approval tasks should be generated for this work center for specific payment methods and when you exceed a defined threshold amount. You find these settings in fine-tuning under Business Task Management for Payment and Liquidity.
See Also
Tasks Relevant for Tax Payments in the Worklist (Overview)
7.1.4 Tax Transactions and Tax Postings

7.1.4.1 Example Scenario for Tax Entries
How the system enters a payment-relevant tax return and the clearing of a tax payable is described here. The entries are presented in simplified form (diagram). 1. Business Transactions: You have released a supplier invoice that has VAT / sales tax of EUR 19. This input tax is a receivable to the tax authority. The system posts as follows:
Account Goods Input Tax (19%) Payables Debit 100 19 119 Credit
You have released a customer invoice that has VAT / sales tax of EUR 380. This VAT / sales tax is a payable to the tax authority. The system posts as follows:
Account Receivables Sales Revenue VAT /Sales Tax (19%) Debit 2380 2000 380 Credit
2. Tax Return: If the related tax return is released, the system posts to the VAT / sales tax account and input tax account as follows:
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Account VAT / Sales Tax Tax Payable Account
Debit 380
Credit
380
Account Tax Payable Account Input Tax
Debit 19
Credit
19
There is a balance of EUR 361 on the tax payable account. 3. Tax Payment: Once you have entered the outgoing tax payment, the system posts as follows:
Account Bank Clearing Account Bank Debit 361 361 Credit
If the tax payment is released, the balance of the tax payable account is cleared:
Account Tax Payable Account Bank Clearing Account Debit 361 361 Credit
7.1.4.2 Goods and Services Granted Free of Charge
Under German VAT law, goods and services granted free of charge relate to the provision of a service or goods without any payment or service in return being agreed upon or to the provision of a serice or goods exclusively for private consumption or use. A distinction is made between deliveries that are free of charge (3 para. 1b, German VAT law) and other services that are free of charge ( 3 para. 9a no. 1, German VAT law).
Deliveries Free of Charge The tax base amount for deliveries that are free of charge is generally the acquisition price or replacement cost, including all overhead costs at the time when the goods were taken from stock. VAT does not form part of the tax base amount. If it is not possible to calculate a purchase price, the cost of goods sold is used. The cost of goods sold comprises all costs that were incurred in the service provision or production process up until the time when the goods were taken from stock. Other Services Free of Charge The tax base amount for taxable services that were provided free of charge comprises all costs incurred in direct relation to performing these services, including any expenses that are not subject to VAT (such as proportional personnel costs). This only holds when the company is completely or partially entitled to claim input tax deduction for these costs.
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Recording the Business Transaction

To be able to post goods and services granted free of charge, the following data is required:

The net value at the time when the goods were taken from stock. The balance sheet account, expense account, and equity account relevant for the posting, as well as the corresponding account determination groups. The tax codes to be used.
You enter goods and services granted free of charge in the Tax Management work center under Manual Tax Entries In certain cases, you might need to make additional postings in other work centers.
Application Examples
1. Posting Example: Other Services Granted Free of Charge
Debit Other Revenue Reserves (Account Type: EQUITY) Travel Expenses (Account Type: COSEXP) Value-Added Tax (Account Type: TAX) Credit
Entering Tax Manually

Account Determination Group Z-1000 Other Revenue Reserves A-7100 Travel Expenses Debit Credit Tax Code Tax Amount
119
100
Z1 Services Granted Free of Charge
19
You set up the account determination group Z-1000 and the tax code Z1 as described below in the Business Configuration section. 2. Posting Example: Low-value asset granted free of charge, originally entered as expense
Debit Other Revenue Reserves (Account Type: EQUITY) Office Supplies (Account Type: COSEXP) Value-Added Tax (Account Type: TAX) Credit

Account Determination Group Z-1000 Other Revenue Reserves A-7420 Office Supplies Debit Credit Tax Code Tax Amount
119
100
Z2 Goods Granted Free of Charge
19
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You set up the account determination group Z-1000 and the tax code Z2 as described below in the Business Configuration section. 3. Posting Example: Warehouse Inventory Goods Granted Free of Charge
Debit Other Revenue Reserves (Account Type: EQUITY) Costs for Finished Goods (Account Type: COSEXP) Value-Added Tax (Account Type: TAX) Credit

Account Determination Group Z-1000 Other Revenue Reserves Z-2000 Costs for Finished Goods Debit Credit Tax Code Tax Amount
119
100
Z2 Goods Granted Free of Charge
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You set up the account determination group Z-2000 and the tax code Z2 as described below in the Business Configuration section. You also need to enter the retirement from the inventory. To do this, go to the Internal Logistics work center and choose Common Tasks Consumption for Cost Center .
Posting the Retirement of Goods

Debit Costs for Finished Goods (Account Type: COSEXP) Finished Goods (Account Type: INV) Credit
Since the postings of the manual tax entry and the retirement of goods use the same expense account, the system generates the following postings for each balance:
Debit Other Revenue Reserves (Account Type: EQUITY) Finished Goods (Account Type: INV) Value-Added Tax (Account Type: TAX) Credit
In the Business Configuration in the activity Chart of Accounts, Financial Reporting Structures, Account Determination, you find the charts of accounts and account determination groups predefined by SAP, together with the assigned accounts. The rules for automatic postings are defined for each account determination group. For more information on the general process for account determination, see Automatic Account Determination and Process Flow: Business Configuration of Account Determination for a Business Transaction. The following sections only relate to business transaction-specific processes and settings.
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Charts of Accounts and Accounts

You can enter additional accounts in the activity Chart of Accounts, Financial Reporting Structures, Account Determination under Maintain Chart of Accounts. Create the new accounts in every chart of accounts used. The required accounts must belong to the following account types:
For Accounts For example: Office Supplies, Gifts, Telephone and Communications For example, Finished Goods and Merchandise, Stock of Raw Materials, Unfinished Goods For example: Subscribed Capital, Other Revenue Reserves Account type COSEXP Costs/Expenses
INV Warehouse Inventory
EQUITY Equity
Account Determination Groups

To be able to post goods and services granted free of charge, you need to set up additional account determination groups that can be used for manual tax entries. Create a new account determination group for equity accounts (account type: EQUITY). In the fine-tuning settings choose under Chart of Accounts, Financial Reporting Structures, Account Determination Maintain Account Determination Groups and then under Subledgers General Ledger Group for Other Payables Add Row . Specify a group number (such as Z1000) and a name for the new account determination group (Other Revenue Reserves, for example). Then set the Used in Other Postings indicator.
Account Determination
For the Costs and Inventories subledgers relevant for posting as well as for the general ledger, check the settings for the following group types and their assigned groups:
General Ledger / Subledger General Ledger Group Type Groups for Other Payables Groups for General Expenses Groups for Materials
Costs subledger Inventories subledger
Set up account determination for the account determination group Z-1000 Other Revenue Reserves. To do this, in the fine-tuning settings, choose Chart of Accounts, Financial Reporting Structures, Account
Determination Account Determination General Ledger . Switch to the Other tab, under Subledgers select the filter value General Ledger and then the filter value for the group type 4 Other Payables. Enter the following data:

Account Determination Group: Z-1000 Other Revenue Reserves Account: 085500 Other Revenue Reserves
Note:Note that the account determination groups can apply to different charts of accounts.
Tax Codes and Tax Determination

Tax codes represent a tax use case and are used automatically by the system to calculate tax amounts. For more information, see Tax Codes and Tax Events [315] and Tax Determination [342]. To define tax codes for goods and services granted free of charge, use the following tax events:
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311 - Goods delivered free of charge 3 Ib 350 - Services provided free of charge 3 IXa
In this way, these transactions will also be displayed automatically in the correct field of the annual VAT report.
7.1.4.3 Postings for Down Payments (Gross Method) Down Payments Made
You enter down payment requests for down payments made in the Supplier Invoicing work center (supplier invoices). If a down payment is based on a purchase order defined in the Purchase Requests and Orders work center, you need to enter a down payment request with a purchase order reference (while quoting the relevant purchase order number). If you enter an invoice at a later point in time, the system uses the purchase order number to identify automatically the referenced down payment. For more information, see Editing Down Payment Requests for Supplier Invoices. For the creation of the final invoice, the system proposes for clearing all existing down payments made to the supplier on the Down Payments tab page. Here, you can change the amount of the down payment. You can clear any remaining amount with a future invoice from the supplier. For more information on the tax due date, see Tax Due Date of Tax Items [319]. Example of Posting System (Schematized Display) 1. You post the outgoing bank transfer of your down payment for 1000 EUR:
Down Payments Made Input Tax Credit Bank 1000 190 1190
2. You enter the final invoice (supplier invoice):

Expense Input Tax Credit Payables 3000 570 3570
3. You assign the down payment to the final invoice (clearing):

Payables Credit Down Payments Made Credit Input Tax 1190 1000 190
After clearing, a payable of EUR 2380 gross (3570 1190) to the supplier remains as well as a tax payable of EUR 380 (570 190) to the tax authority (input tax deduction). The system automatically creates a corresponding receivables item in the tax register [315] and in the tax ledger.
Down Payments Received

For information about entering and editing received down payments, see Down Payments from Customers.
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The net method is not supported.
Example of Posting System (Schematized Display) 1. You enter the down payment request of a customer: For this down payment request, the system automatically creates an open item in the customer account (no corresponding posting is made in the general ledger). For more information, see Customer Account Monitor [133] and Open Items Receivables [132]. 2. You post the receipt of a down payment:
Debit Cash Receipt Credit Down Payments Received Credit VAT 19% 20 16,81 3,19
3. You enter the final invoice (customer invoice):

Receivables Credit Revenue Credit VAT 19% 59,58 50,07 9,51
4. You assign the down payment to the final invoice (clearing):

Down Payments Debit VAT 19% Credit Receivables 16,81 3,19 20
Displaying Open Tax Items from Down Payments You can display open tax items from down payments as follows: 1. In the Tax Management work center, call the Open VAT / Sales Tax Items [399] report. 2. In the selection screen, enter the company and use the tax due date to specify the reporting period. 3. Under Tax Event, select the criteria Incoming Down Payment Invoice and Outgoing Down Payment Invoice and click OK. Manual Tax Adjustment To make a tax adjustment retroactively for a down payment request, switch to the Tax Management work center, generate a posting under Manual Tax Entries, and enter the appropriate tax code for incoming or outgoing down payments.
7.1.4.4 Intra-Community Movement
Intra-community movement concerns the intra-enterprise delivery of goods between two countries in the European Union (see 6a, German VAT law). Intra-community goods deliveries need to be recorded in EC sales lists and reported to the German Federal Office for Taxes ( see 18a, German VAT law).
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Internal stock transfers you enter in the Outbound Logistics Control work center. To do this, refer to Intracompany Stock Transfer Processing.
Manual VAT Entries

For the system to calculate tax for the stock transfer to another EU country, you need to make a manual tax entry in the Tax Management work center (in addition to performing the internal stock transfer described above). To do this, proceed as follows: 1. Under Manual Tax Entries, go to the VAT Entries view and click New. Enter the company, country, and currency data, as well as the posting date. Enter your VAT registration number for the EU country of destination. 2. Enter the following journal entry data in the lower screen area:
Account Z 9999 Clearing Account Manual Postings Z 9999 Clearing Account Manual Postings 100 Debit Credit 100 Tax codes Tax amount
507 Intra-Community 0 Delivery
5 Intra-Community Acquisition (standard rate)
Note: The debit and credit values are used for the stock transfer of valued amounts. 3. To make the posting to the tax accounts and to enter the data in the tax register, choose Post.
See Also
Quick Guide for VAT Entries [365] Quick Guide for EC Sales Lists [374] Quick Guide for EC Sales List Runs [393]
7.1.4.5 Taxable Business Transactions Abroad
Tax returns and tax payments resulting from them are only supported for countries that are included in the current scope. You can still enter tax entries and tax items for other countries. Prerequisites
In Business Configuration, in the Chart of Accounts, Reporting Structures, Account Determination task, two tax clearing accounts (tax payable accounts) were defined of the G/L account type Receivables and OLIAB Other Receivables/Payables (for example, with the descriptions Clearing for foreign input tax and Clearing for foreign VAT / sales tax).
You have entered the master data of the foreign tax authority in the Tax Management work center. If the tax country has a different currency to your company currency, the corresponding values need to be defined in the General Ledger work center under Common Tasks Edit Exchange Rates .
General Procedure 1. Determine the balance of the tax items for the relevant tax country in the Open VAT / Sales Tax Items tax report. Send the relevant tax data to the foreign tax authority outside of the system.
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2. Enter a manual tax entry and repost the tax receivable or tax payable to the respective tax clearing account. 3. Enter the bank statement with the incoming or outgoing tax payment. Then perform a payment allocation manually. To do this, report the tax payment to the tax clearing account. 4. The balances in the tax clearing account and in the Open VAT / Sales Tax Items report are now cleared. The individual tax items, however, are still displayed in the Open VAT / Sales Tax Items report. Note: The system automatically posts a foreign currency difference resulting from exchange rate changes as profit or loss. Example Scenario "Tax Payable to Tax Authority in Italy" A supplier invoice was entered with a foreign tax code. The foreign input tax is refunded by the relevant tax authority during input tax refund processing. The account descriptions used in the example can differ from the descriptions in the system.
1. At the end of the reporting period, you determine the balance of the tax items for the tax country Italy. To do this, switch to the Tax Management work center, open the Open VAT / Sales Tax Items report and select Italy as the tax country. In this example, we assume that the report for the selected reporting period displays a tax payable of EUR 200 to the Italian tax authority. 2. To repost the tax payable from the Foreign Input Tax account to the tax clearing account, enter the following entry in the Tax Management work center under Manual Tax Entries:
Account Tax Clearing Account Tax Clearing Account EUR 1,200 Debit Credit EUR 1,000 Tax Code 2 - Domestic Purchase 20 %
The line item in the journal entry is tax clearing account to foreign input tax EUR 200. For more information, see Quick Guide for VAT / Sales Tax Entries [365]. 3. Once the Italian tax authority has refunded the input tax amount, it is displayed in the bank statement of your bank. Enter the bank statement in the Liquidity Management work center with the incoming tax payment. The line item in the journal entry is bank to bank clearing account EUR 200. Switch to the Payment Management work center and perform a manual payment allocation for the corresponding item in the bank statement. To do this, choose the Other Allocation tab and enter the tax clearing account as the G/L account. The line item in the journal entry is bank clearing account to tax clearing account EUR 200. For more information, see Quick Guide for Tax Payments [382]. 4. The balance of the tax clearing account is now cleared. The Open VAT / Sales Tax Items report also has a zero balance. The individual tax items were not cleared and are still displayed in the Open VAT / Sales Tax Items report (but not in the Reported VAT / Sales Tax Items report).
7.1.4.6 Calculation of tax abroad for B2C sales Overview

Tax on goods and services such as VAT or US sales tax occur in customer or supplier invoicing and activities like sales order, purchase order, service order, project billing, and expense and reimbursement management. Tax Abroad is applicable in a scenario where a company needs to apply foreign taxes. In case of selling goods, the company must be registered with the tax authority of the customer's country in order to apply and declare tax abroad. In case of purchasing
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it is possible to receive an invoice with foreign tax even if the company is not registered with the foreign tax authority. The system automatically determines the applicable tax in transactions like customer invoice and supplier invoice. B2C sales scenario for tax abroad occurs when a company of one European Union country sells to a private account in a different country, where the company is registered for VAT. Goods should be delivered regularly to private persons abroad where turnover in previous year is higher than a defined threshold. A is a company that delivers goods to a private person B in a European Union country. The legal compliance means that A must register with the tax authority of the customers country. Company A sends invoice in the customers invoice format and with the VAT registration number of A. A needs to declare invoice to the customers tax authority. A needs to declare the tax base amount as non-taxable to the tax authority in home country.
Prerequisites
The obligations to apply foreign taxes requires the company to register with the tax authority of the foreign country. In fine tuning you should verify if the tax abroad settings are done for tax calculations (Tax on goods and services, Tax settings for purchasing). The user should check for currency conversion types and exchange rates. You should make sure that the tax classification, product classifications are properly maintained in material or service master data.
Process Flow
The process flow associated with tax abroad in B2C sales processes using the system is outlined below. During this process, you can access the Tax Management and the Account Management work center to execute a sell from stock scenario. 1. After the registration with the tax authority in the foreign country is obtained, you can open the Tax Management work center and creates or edits the tax authority for the foreign European Union country where the customer is located. Within European Union, companies from other European Union countries are required to register, if they have exceeded a certain threshold of sales to private accounts in the past year. The threshold value varies from country to country and is in the range of 35.000 to 100.000 EUR. The system saves the tax authority data. 2. You can create a company tax arrangement and enter the VAT registration number that is received from the tax authority. The system saves the company tax arrangement. Once you have created the company tax arrangement and specified the tax number, all subsequent processes with private accounts in that country will be taxable in that country as domestic sales. Without the registration, such sales scenarios would be taxable as domestic sales in the country of the company that is known as distance selling. 3. You can open the Account Management work center to create a private account in the foreign European Union country, where the company is registered. From the tax abroad perspective, for an account to be a private account it is important that the country is maintained in the address data of the account and that the account has no VAT registration number in the country. 4. You can run any sales process, such as sell from stock with the private account in the country where the company is registered. 5. In all the sales documents like sales order, customer invoice document, service order, down payment request and so on the user needs to enter the ship-to party and also check the country specified in the address. 6. When you click the Taxes tab the tax code and the tax country should be automatically filled in by the system. This helps in carrying out the tax calculations for the services. 7. You can verify whether a tax abroad scenario has occurred, by navigating to the Taxes sub-tab. There, the taxable country should be the country where the account is located. Other possibilities are:
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If the system has specified a different tax country, such as the country where the company is located, you can overwrite the tax country using the value help and assign a tax code for the changed tax country. If the value help does not offer the desired tax country for the customer, it is an indication that a company tax arrangement does not exist for that country. You can check in the Tax Management work center. If a tax arrangement exists, but the desired country key is not offered, it may be that the tax configuration does not exist for the respective country. You can verify this in fine-tuning. If the country is not available in finetuning, this country is not supported by the system. In this case, it is not possible to use the tax abroad scenario with that country. If you select the desired foreign country as tax country , but it is not proposed by the system for the sales, the reasons may be: If the company is not located in an European Union country, sales to private persons are usually exports from the departure country and not subject to tax abroad.

The customer account is not a private account. The account is a private account, but not located in the European Union.
7.1.4.7 Calculation of tax abroad for services Overview

Tax on goods and services such as VAT or US sales tax occurs in customer or supplier invoicing and activities like sales order, service order, project billing, and expense and reimbursement management. Tax abroad is applicable in a scenario where a company needs to apply foreign taxes. In the case of selling services, the company in principle must be registered with the tax authority of the customers country in order to apply and declare tax abroad. For purchasing, it is possible to receive an invoice with foreign tax even if the company is not registered with the foreign tax authority. The system automatically determines the applicable tax in transactions like customer invoice and supplier invoice. Services scenarios for Tax abroad occurs especially for specific types of services related to immovable property or transportation services. A company constructs a building for a customer B in a European Union country. The building is located in a foreign country. The customer is not a taxable person. The legal compliance means, that the service provider company in principle must register with the tax authority of the country where the service is provided. The company sends the invoice with the VAT registration number from the service rendered country. The company declares the invoice amount to the tax authority in the service rendered country applying the local legislation for invoicing. The company declares the tax base amount as non-taxable to the tax authority in the companys home country.
Prerequisites
Within the European Union, companies are in principle required to register with the tax authority of the foreign European Union country under special circumstances. In fine tuning, you should verify that the tax abroad settings are done for tax calculations (Tax on goods and services, Tax settings for purchasing). You should also check for currency conversion types and exchange rates. You should ensure that the tax classification and product classifications are properly maintained in material or service master data. The number ranges must be assigned for the combination of selling company and tax country. The currency conversion rates are officially provided by the tax authorities in several countries. Using other exchange rates may only be allowed with the permission of tax authorities.
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Process Flow
The process flow associated with tax abroad for services using the system is outlined below: 1. After the registration with the tax authority in the foreign country is obtained, open the Tax Management work center and create or edit the tax authority for the foreign country where the customer is located. The system saves the tax authority data. 2. You have to create a company tax arrangement and enter the VAT registration number that is received from the tax authority. The system saves the company tax arrangement. Once you have created the company tax arrangement and specified the tax number, all subsequent sales processes with private accounts in that country will be taxable in that country as domestic sales. Without the registration, such sales scenarios would be taxable as domestic sales in the country of the company. 3. You can create a new service or edit an existing service by going to the Product Data work center and the Services view. The system checks in purchasing and sales scenario where these services are taxable. Service can be taxable at: Destination: In this case, you have to add a row for each country that is a part of transaction and select the Taxable At Destination checkbox.
Supplier/Customer: In this case, the service is taxable in country where the supplier is registered. You have to add a row for each country that is a part of the transaction and deselect the Taxable At Destination checkbox. Service subject to reverse charge: In this case Services are subject to reverse charge and the buyer owes the tax in the country where the tax is due. This is shown by Tax Exemption Reason. Service subject to reverse charge and taxable at destination: In this case, services are subject to reverse charge and also taxable at the destination. The user has to add the Tax Exemption Reason and also select Taxable At Destination checkbox for all countries in the transaction. You need to make entries in either the Sales view or the Purchasing view. The system then copies this data to the other view.
4. The entries to be made in the Sales view or the Purchase view are as follows: Sales: In all the sales documents like sales order, customer invoice document, service order, down payment request and so on, you need to enter the ship-to party and also check the country specified in the address.
Purchases: In all purchase documents like purchase order or supplier invoice, service order, down payment request, the system verifies the country of the supplier by comparing the master data with the invoice data.
5. When you click the Taxes tab, the system displays the tax code and the tax country. This helps in carrying out tax calculations for the services. 6. You can verify whether a tax abroad scenario has occurred by navigating to the Tax sub-tab. The tax country is the country displayed when you select the ship - to party on the sales or the country of the supplier for purchasing. Other possibilities are: If the system has specified a different tax country, such as the country where the company is located, you can overwrite the tax country using the value help and assign a tax code for the changed tax Country.
If the value help does not offer the desired tax country for the customer, it is an indication that a company tax arrangement does not exist for that country. You can check this in the Tax Management work center. If a tax arrangement exists, but the desired country key is not offered, it may be that the tax configuration does not exist for the respective country. You can verify this in the fine-tuning. If the country is not available in finetuning, this country is not supported by the system. In this case, it is not possible to use the tax abroad scenario with that country.
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If you can select the desired foreign country as tax country, but it was not proposed by the system for the sales or purchase documents, the reasons may be: That the company is not located in an European Union country. In this case, sales to private persons are usually considered as exports from the departure country and hence, not subject to tax abroad.

The customer account is not a private account. In this case the reverse charge is applicable The account is a private account, but not located in the European Union.
7.1.4.8 Different Tax Rates in Invoices Overview

For invoices that have goods and services with different tax rates, it is necessary to assign a correct tax rate to each item, and to display the totals for each tax rate in the invoice (14 UStG Absatz 4 Nr. 7 und 32 UStDurchfhrungsverordnung), so that you can issue an invoice that entitles your customer to claim tax deduction. In order that a tax rate can be assigned to a particular invoice item, we recommend the following procedure for release FP1.2: In the master data, add the correct tax rate to the product description, using brackets; for example, the reduced tax rate of 7% for printed media or food (see Appendix 2 of the value-added tax (VAT) law), or the standard tax rate for all products that are not covered by 12 Abs. 2 UStG. If a tax rate is specified in the product description, it is easy and clear to see in the invoice at which tax rate each invoice item has been taxed. The tax amount is displayed in the invoice for each tax rate. The product or service master data is located in the Product and Service Portfolio work center, in the Products or Services view.

Instruction Manual for Installing Heaters (7%) Heater (19%)
Note that there can be deviations if parts of the service represent non-independent ancillary services. In this case, the taxation method used is based on the principal service, and the tax rate of the ancillary service must be adjusted. Change of Tax Rate If a tax rate law is changed, you must also change the tax master data for your products and the product descriptions. Enter a new product with the new tax rate, and start using it on the effective date when the tax rate is valid. You can use products with old tax rates for transactions such as cancellations or returns. The product description and the tax exemption notice must be maintained in the language of the debtor, so that both texts appear on the invoice. If these are not maintained, the product description and the tax exemption notice will not appear on the invoice.
Prerequisites
You specify the print settings for taxes in the Business Configuration work center, Activity List view, Fine-Tune phase, Configure Price Strategy step. Select the following value for the Tax pricing element (step 90) in the Total Print column: Only if <> 0. The remuneration accrued for each tax rate is then printed at the end of the invoice. Tax amounts with the value 0 are not printed.
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If there is a tax exemption according to 4 UStG or deliveries and services, you specify this in the product master data. Choose a service or a product in the Product and Service Portfolio work center, Products or Services view; then choose Edit > View All, and navigate on the Sales tab to the Taxes tab. Enter the tax exemption here as described below: Country: DE

Tax Type: MWST Tax rate: Null Tax exemption reason: Steuerbefreit gem. 4 UStG, 828 or Steuerbefreit gem. 4 UStG, 2-7 If a tax exemption according to 4 Nr. 8-28 UStG is applicable, the relevant tax exemption reason such as Steuerfreie Vermietung (tax exempt rent) must be specified in the Notes field of the invoice. In certain cases, a notice of transfer of tax debt must also specified in the Notes field of the invoice forReverse Charge Mechanism [355].
7.1.4.9 Discounts: Cash Discounts and Bonuses Overview Cash Discount

Cash discounts are deductions on the invoice amount when the invoice is paid within a certain cash discount period. The amount eligible for cash discount can differ from the invoice amount because cash discount is only valid for the material costs; services are not eligible for cash discount You will find further information under Cash Discounts for Supplier Invoices in Financials [78] and Cash Discounts for Customer Invoices in Financials [142]. Fixed Assets Only the acquisition and production costs plus incidental costs are costs that must be capitalized in the fixed assets. If you draw on a cash discount you should reduce the amount of the fixed asset accordingly.
Payment Terms for Cash Discounts

Payment terms for cash discounts specify the cash discount percentage, the discount availability period and the final payment date. You can specify multiple cash discount terms. For example, a supplier can offer a discount of 3% for payment within 10 days and 2% for payment within 20 days. Beyond 20 days the discount expires, and the whole amount is payable within 30 days. In the United Kingdom, payment terms with multiple cash discount terms are not used. If more than one set of discount terms is defined, the system uses the first set of terms for processing the discounts. For example, if the payment terms stipulate that a 3% discount is offered for payment within 10 days and a 2% discount for payment within 20 days, the system applies the terms that stipulate a 3% discount for payment made within 10 days.
Bonuses
Bonuses are handled as credit memo for example at the end of the year as volume credit memo and treated like cash discounts with respect to the tax law.
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Gross or Net Procedure

There is the possibility to reduce the invoice amount by taking the gross or the net amount:
If cash discount is taken from the gross amount also the tax amount has to be corrected when the cash discount is taken. If cash discount is taken from the net amount, the tax amount is not discounted, therefore there is no correction of the tax amount required. In the United Kingdom, the cash discount is taken from the net amount. However, the tax amount is calculated for the discounted net amount. For payments made within the cash discount period, the payment due is the discounted net invoice amount plus the discounted tax. For payments made after the cash discount period, the payment due is the full net invoice amount plus the discounted tax. Therefore it is not necessary to correct the reporting of the value-added tax in the United Kingdom because the same discounted tax is applied before and after the discount period.
In the following examples we assume that the tax base amount is gross.
Gross Procedure Net invoice amount EUR 1,000.00 plus value-added tax EUR 190.00 is EUR 1,190.00: Cash discount of 3% here is EUR 35.70. The discounted amount payable is EUR 1154.30. The tax declared at the time of the invoice is EUR 190. If at payment time the cash discount is taken, then the tax amount is adjusted by EUR 5,70. This results in a tax amount to be declared of EUR 184,30. Net Procedure Net invoice amount EUR 1,000.00 plus value-added tax EUR 190.00 is EUR 1,190.00: Cash discount of 3% here is EUR 30.00. The discounted amount payable is EUR 1160.00. Therefore the tax declared during or after the cash discount period is EUR 190.00. The tax amount is not adjusted. In the United Kingdom, cash discount is applied to the net amount. Therefore a cash discount of 3% on GBP 1000 is GBP 30, which equals GBP 970. The tax is always applied to the discounted net invoice amount therefore 17.5% tax on 970 GBP is GBP 169.75. Therefore the amount payable during the cash discount period is GBP 1139.75. After the cash discount period the discounted net invoice amount returns to the full amount, GBP 1000, but the tax remains at GBP 169.75. Therefore the gross amount payable is GBP 1169.75.
Prerequisites
Create your deduction reasons for cash discounts in the work center Business Configuration. In the Activity List view, choose Fine Tuning in the Activities Deduction Categories - [Country] under Deduction Categories for [Country] > Cash Discount. You will find the activities for all countries for which you did your scoping. Assign the deduction category Cash Discount to tax type Value Added Tax (VAT) in the work center Business Configuration. In the Activity List view, choose Fine Tuning in the Activity Tax Adjustments for Deductions. In this way, you define for each tax country how the VAT is corrected if a cash discount is posted. With the deduction category the system determines:

Whether for this country a backdated tax calculation should be processed or not The account for cash discounts on costs and revenues using the account determination. The determined accounts are specified in the account determination and can be changed if necessary.
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7.1.4.10 Exchange Rate Differences in Journal Entries
If you enter and post business transactions with foreign currencies, the conversion date defined in the system and the predefined conversion type are used for the automatic currency conversion of the individual line items of a journal entry into company currency. The system uses different rules and settings to determine the conversion date and type for tax line items and other line items. The differences are displayed in the following table:
All line items without tax line items Conversion Date Tax line items
The posting date is used as the conversion date for all sets of books The tax date of the business transaction and companies by default. is used as the conversion date by default. You cannot change the configuration The conversion dates are defined in the activity Fineoptions. Tuning Currency Conversion Profiles . The assignment of a currency conversion profile to the set of books and company is specified in the fine-tuning activity Extend Set of Books . The conversion type Middle Exchange Rate is used for all tax countries. The conversion type is defined for each tax country and entered in the activity Fine-Tuning Services Conversions . Tax on Goods and Define Currency Integrate and
Conversion Type (value for bid rate, middle exchange rate, or ask rate)
The conversion type Middle Exchange Rate is used for all sets of books and companies. The conversion types are defined in the activity FineTuning Currency Conversion Profiles . The assignment of a currency conversion profile to the set of books and company is specified in the fine-tuning activity Extend Set of Books . Integrate and
For almost all business transactions and postings, the tax date and posting date match. With the standard settings mentioned above, no exchange rate differences are displayed in the journal entries. Therefore, we recommend that you do not change the standard settings to avoid unwanted exchange differences in the accounting documents. Special Features:
The most recent tax date of all invoice items is used for currency conversion of the invoice amounts in customer and supplier invoices. You can change the tax date for each invoice item manually for customer invoices. For supplier invoices, the following order sequence is used to determine the tax date: If the invoice document is assigned to a posted goods receipt, the system uses the invoice date (and not the goods receipt date) as the tax date.
If the invoice document is assigned to a posted goods receipt confirmation, the system uses the goods receipt date (delivery date) as the tax date. If there is neither a goods receipt confirmation nor a goods receipt, the system uses the invoice date as the tax date. If you change the posting date in the invoice document, the changed posting date is also used as the tax date.
You can enter exchange rates manually for supplier invoices. However, these only have an effect on the conversion of the tax items and can therefore cause exchange rate differences.
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For a goods return, the system uses the invoice date of the related invoice document as the tax date. If no invoice document can be assigned to the goods return but a purchase order is assigned, the system uses the order date.
Example - Supplier Invoice with Different Conversion Date You enter and post a supplier invoice in foreign currency that is referenced to a previous goods receipt.
Goods Receipt Date Invoice Date Posting Date Conversion Date for Gross and Net Amount 03.06. Conversion Date for Tax Items 01.06.
01.06.
03.06.
N/A
The system uses the invoice date which corresponds to the posting date by default, as the conversion date for posting the gross and net amount. The system uses the goods receipt date of the delivery as the conversion date for posting the tax item. If different exchange rates are defined on June 1 and June 3, an exchange rate difference is portrayed in the accounting document for the supplier invoice.
See Also
Currency Conversion Profile
7.1.5 Tax Determination 7.1.5.1 Tax Determination

7.1.5.1.1 Tax Determination Overview
Business ByDesign provides a tax event and uses the resulting figures to generate tax reports. This automatically-created report does not replace the customer or users own tax appraisal. SAP does not assume liability for the accuracy of the automatically-created report or the tax report that is generated. As a rule, companies are legally required to calculate taxes on products that they buy or sell or services used, and to levy these taxes on their customers. After the products or services have been provided, the taxes must be declared and paid to the relevant tax authorities. The taxes are calculated for business documents such as orders, invoices, credit memos or down payments. Since taxation laws differ in each country, your company is faced with the challenge of calculating the correct tax for a particular business transaction. The system supports you by automatically calculating the tax for the following tax types:
Value-Added Tax (VAT) This tax is levied in many countries, especially countries in the European Union. Many regional differences exist. For example, in some countries such as Canada and Australia, value-added tax is levied as "Goods and Services Tax". Sales and Use Tax This tax is levied, for example, in the United States, and in a similar form in Canada (Provincial Sales Tax). Withholding Tax
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This tax is levied in different forms in different countries. The system is able to calculate withholding tax for the United States. The system also offers a reporting tool that gives you effective control over your mandatory declaration of these taxes.
Prerequisites

You have created the Master Data for Tax Determination [347]. Defining the Solution Scope for Taxation The following activities are necessary to define the solution scope for taxation: The solution scope for taxation is specified in the system in Business Configuration under Built-In Services and Support. The Tax Calculation business topic is located in the Business Environment business package.
If you are also required to have taxes calculated in your quotes, activate the relevant option in Scoping. In the Questions step, navigate to the Sales business area, and choose New Business > Quotes with Tax Calculation.
Elements
The system collects the relevant data from the available business documents to correctly calculate the taxes applicable. As the user, you have to configure your system with the information that is required for your business cases. A lot of standard business cases are pre-configured by SAP, but in some cases you have to enhance your system. For more detailed information about tax determination and how the system merges and classifies data, see Elements for Tax Determination [349].
Tax Number Determination

In the following cases the tax number is determined again:

Tax date has been changed Buyer, seller or tax reporting group has been changed Tax number is wrong Tax country has been changed
Value-Added Tax (VAT) Numbers

For Export Deliveries To obtain tax exemption for intra-community deliveries, you need to record, among other things, the service recipients VAT number to be used for the receipt of goods. If several VAT numbers are assigned to a customer master record, the system selects the VAT number according to the following criteria:

The VAT number of the country in which the ship-to party is located. If the VAT number of the ship-to country is not entered in the master data, the system searches for other numbers entered in the master data and selects a number that is different from the number of the country from which the goods are sent.
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If there is only one VAT number for the country where the transport of goods starts, or if there is no number at all, the prerequisites for an intra-community delivery have not been fulfilled, and the delivery must be taxed at the relevant tax rate. If a VAT number is entered in the master data, it will be displayed automatically on the invoice. You can overwrite it on the Taxes tab in the document. However, you can only overwrite using those numbers that have been previously entered in the account master record.
For Other Services, Performed Abroad According to the EU directive 2008/8/EG and country-specific tax legislation, there is new regulation particularly for B2B commissions. that relates to the place in which services are performed. Generally the place in which services are provided serves as the service recipient address. If the service is provided at a branch abroad, then the address of the branch abroad is valid. 3a (2) UStG in Germany can be consulted as an example. In order to distinguish between companies and individuals as the service recipient, the system (tax decision tree) checks whether a VAT number has been entered in the account master data. If the VAT number is missing, the business case is regarded as a service that was performed for an individual. Therefore it is important to remember to enter the VAT number when you enter the account master data.
Reverse Charge Mechanism

Reverse charge mechanism means that, in certain cases, the customer is required by law to be liable for VAT, and to pay it to the relevant tax authority. In this case, the entrepreneur issues an invoice without VAT, but with a notification indicating that the tax debt is being transferred to the customer. The customer must calculate and pay the VAT to the tax authority, and can claim input tax deduction at the same time as usual. The transfer of tax debt to the service recipient is called reverse charge mechanism. For more information, see Tax Determination with Reverse Charge Mechanism [355].
Third-Party Order Processing Taxation

In typical sales scenarios, transactions take place directly between a company and an account, both business partners are located in the same country, and the company produces and delivers a good or service directly to the account. In such scenarios, there is no need for special tax regulations. However, in the event that one or more parameters of this business scenario differ from the typical situation and, for example, account address and ship-to addresses are not the same, special regulations apply, depending on how complex the scenarios are. For more information, see Third-Party Order Processing and Chain Transaction Taxation [358].
Relevant Date for the VAT Tax Return

The date used for the VAT tax return depends on the business document. For example, in the supplier invoice the Receipt Date is used, and in the customer invoice the Invoice Date is used. But if you want you can also enter a Changed Tax Due Date. For more information on the tax due date, see Tax Due Date of Tax Items [319].
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Entering or Changing Tax Codes in Journal Entry Vouchers

You can enter or change tax codes in journal entry vouchers as follows:
Sales Orders Go to the Sales Orders work center and choose New Sales Order or an existing sales order for editing. Choose View All. Go to the Items tab page and from there to the Taxes tab page. Choose an appropriate entry for the order item selected under Tax Code. Invoices or Credit Memos Go to the Customer Invoicing work center and choose New Manual Invoice or an existing invoice or credit memo for editing. Go to the Items tab page and from there to the Taxes tab page. Choose an appropriate entry for the invoice item selected under Tax Code. Purchase Order Go to the Purchase Requests and Orders work center and choose New Purchase Order or an existing purchase order for editing. Choose View All Items . In the Basic Data tab page, select under Taxes the appropriate tax code for the selected purchase order item.
Supplier Invoice Go to the Supplier Invoice work center and choose New Invoice Without Purchase Order or an existing invoice for editing. In the Overview tab page, select the appropriate tax code for the selected invoice item.
Tax Decision Tree

The system uses a tax decision tree to correctly determine a tax event. The tax decision tree consists of a sequence of logically connected questions that the system determines as being true or false by comparing them with data entered in the documents. In this way, the facts are narrowed down until the tax event and the correct taxation method has been determined. The questions are answered by comparing data entered in the document, and the underlying process can be represented as a process flow. The questions in the following example are used to determine the tax event Export to Third Country for a company based in Germany.
A tax decision tree is assigned to each country.
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Process Flow
The process flow for tax determination describes a sample of how the tax event is determined for an invoice: 1. The sales representative creates and saves a manual invoice. 2. After the required data is entered, the system transfers tax-relevant data to tax determination, such as: Location of supplier and buyer
Tax attributes of the business partner One of these attributes is the tax exemption reason that depends on certain country-specific laws. Tax attributes of products Tax rate type and tax exemption reason can be different for each country, region, and tax type. In the United States, for example, services are not normally subject to tax, so the tax exemption reason should be assigned in the product master data. Products are normally taxed at the standard tax rate and no other entries are required.
3. The system uses the tax-relevant data to activate tax determination, and the data is processed automatically in a tax decision tree. 4. The system calculates tax on the basis of the following components: Tax event

Tax types Tax rate types such as standard value-added tax rate Tax rate as a percentage Taxable amount
5. The system includes the result of the tax determination and calculation in the sales order. The calculated tax is displayed on the Pricing tab and on the Taxes tab of the Items tab. All tax details determined by the system are displayed on the Tax tab. Examples are: Tax country

Tax code Tax jurisdiction code in case the tax country is United States
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Tax region in case the tax country is Canada Tax date A table with one row for each tax type that lists the following: Tax base

Tax rate type Tax rate Tax exemption reason, if necessary Tax amount Deductibility type (only for purchasing documents) Country-specific parameters (if necessary), such as indicators for deferred tax (in France or India), tax jurisdiction code (United States), or region (Canada). However, not all tax-relevant transactions can be recognized automatically and correctly by the system. Therefore, we recommend that you overwrite the data manually in the document, in case the system does not determine the correct tax country or the correct tax code for the transaction. If you have to change the tax country in the document manually, the input help displays only the countries for which a tax authority is created and tax arrangements are maintained for your company. However, you can also enter another tax country in which sales need to be reported for tax purposes. The system then displays the specific tax codes for this country. Remember that you need to create the tax authority for this country. You then need to trigger tax determination again in the document so that the correct tax number of your company is found for the transaction. For countries that have multiple tax rates, you can enter the tax criteria manually. Note that if tax-relevant data such as the country of the service location or of the goods recipient has been changed in a follow-up document of a business transaction, the Tax Country and Tax Code is not redetermined. This affects, for example, changes in the address data in a service confirmation that is created for a service order, or in a project invoice that is created for a sales order.
See Also
Party Processing Tax Determination US [361] (This document covers topics specific for the United States, such as delivery taxation in Texas and California, Nexus.)
7.1.5.1.2 Tax Determination Details

7.1.5.1.2.1 Master Data for Tax Determination
To ensure that the determination within your sales processes is running properly, you have created the following master data:
Tax Authority
In the Tax Management work center, you have created a master data record for each tax authority that is responsible for your company.
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Company Tax Arrangements

You have assigned a company tax arrangement in the master data record for the tax authority. You enter your tax number for the tax type to confirm that your company is registered and that you have declared tax to the relevant tax authority.
Tax Exemption Certificate in Account Master Data

In countries such as the United States, France, and Italy, accounts such as non-profit organizations can be exempt from tax payments for a certain period of time. For these accounts, you define the appropriate exemption certificate number and the validity date in the account master data. These entries are required for payment transactions. If the exemption is valid on the day of payment, no tax is posted. The exemption certificate number is automatically entered in the payment document. A reason for tax exemption can be entered in the account master data.
Tax Jurisdiction Code in Account Master Data for the United States
You have created a tax jurisdiction in the account master data.
Company
Company data, such as the company, address, and the tax jurisdiction code is entered in organizational management.
Products
If you do not enter any other information in a product master record, the product is taxed at a standard tax rate. If you want to change the standard tax rate for certain countries, you must assign the tax rate type and, if necessary, a tax exemption reason to the relevant product in the master data.
Services
For services, you must specify which types of services you offer, and how these are to be taxed, or who is liable for tax for a particular business transaction, so that the system determines the relevant tax codes. Enter your services in the Services view of the Product and Service Portfolio work center under, and if necessary, assign them to the relevant tax exemption reason on the Taxes tab, or specify whether the service is taxable at the location where the service is to be provided: Specifics for European Union
Certain services are always taxed at the head office of the company that provides the services, even if these services are provided for an account located abroad. In the master data records of such services, ensure that nothing has been entered in the Tax Exemption Reason field on the Taxes tab, and that the Taxable at Destination indicator has not been set. According to Directive 2008/8/EC and its implementation under the Annual Tax Act 2009 from January 1, 2010 onwards, this is the basic rule for services that are provided for a private end consumer abroad. Certain services must always be taxed at the location where the service is provided, such as construction works on buildings. For such services, set the Taxable at Destination indicator on the Taxes tab. Here, the system checks the location of the goods recipient (or the location at which the service is provided). The transaction is not taxable domestically if the location at which the service is provided is abroad. In such a case, the company providing
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the goods or services must tax the business transaction in the receiving country and also be registered there. According to Directive 2008/8/EC and its implementation under the Annual Tax Act 2009 from January 1, 2010 onwards, this is required, for example, for work on movable tangible property for a private end consumer abroad.
Other services such as those provided by a company located abroad or specific work deliveries are taxed according to the reverse charge mechanism. For more information, see Reverse Charge Mechanism [355]. From the seller's perspective, the transaction must be reported, but the tax debt transfers to the account. If this tax exemption reason is entered in the services master record, the system applies the reverse charge rule for a corresponding sales transaction. The note referring to the reversal of tax debt (reverse charge mechanism) is printed on the invoice. The relevant tax exemption reason must be entered for the service on the Taxes tab. According to Directive 2008/8/EC and its implementation under the Annual Tax Act 2009 from January 1, 2010 onwards, this is the basic rule for services that are provided for a company abroad. This basic rule is determined automatically, if the head office of the company providing the goods or services is in any EU member state. In the case of domestic accounts, however, the system does not automatically recognize the reverse charge rule. Where applicable, the user must manually overwrite the tax code in the sales document (13b (1) No. 2 - 5). For this you can create your own tax code and legal phrase in business configuration. For more information, see Tax on Goods and Services Configuration Guide [359]. The corresponding tax event and tax exemption reason code are already available in the system.
See Also
Tax on Goods and Services Configuration Guide [359] Tax Determination [342]
7.1.5.1.2.2 Elements of Tax Determination Overview

The following sections provide you with an overview of the tax determination elements and their relations:
Tax Type and Tax Rate Type

Every tax type in a tax event has a tax rate type and a tax rate that is applied to the tax base (in most cases the net amount) to calculate the tax amount for the relevant tax type. Tax rates are represented in the system by tax rate types in the example of Germany, the tax rate of 19% for valueadded tax corresponds to the Standard tax rate type. This makes it easy to represent time-dependencies. If the tax rate for this tax type changes because of a new law, you can define a new tax rate in the system for a specific validity date without having to create a new tax code. Country Specifics
India and Canada For tax jurisdictions such as India and Canada, where more than one tax type exists, the following fields can be used: Tax Rate Type and Tax Exemption Reason, as well as Deductibility Type for purchasing documents. Germany The Standard tax rate type is calculated for the Value-Added Tax tax type on the basis of the net amount. This means that if the tax rate is 19%, a tax amount of EUR 19 is calculated for a net amount of EUR 100.
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Tax Rate
Country Specifics
Canada and United States For Canada, tax rates are preconfigured for each province and territory in Canada, and for each state in the United States. However, before using the system, you must check whether these tax rates are still valid according to any recent legislative amendments.
Tax Event
In the tax event, the system determines the method of taxation to be used for the business transaction according to:

Which tax types are applicable Whether the business transaction is taxable or not Whether the business transaction is subject to tax or not Which tax rate is applicable
For transnational business transactions, the system uses a tax decision tree for both the ship-from country and the shipto country to determine the taxation method used in the tax event for each country. The relevant decision trees are determined by the tax countries entered in the document, in particular by the countries of the supplier and the goods recipient. Other tax jurisdictions can be the:

Location of the business residence of the seller who provides a service Location of the business residence of the buyer for whom a service is provided Location where the service is to be provided
Implications of the tax event for other areas:
To calculate tax, the tax event takes the following into account: Due tax type

Procedure for tax calculation Tax exemption reasons, if required
To determine tax, the tax event specifies the following: Allocation criteria for the tax reports
The field in which the tax is displayed on the tax return: You can assign tax events to the fields of the tax return form for the relevant country. For more information see, Tax Returns for Goods and Services.
In accounting, the tax event controls account determination.
There are, of course, more tax events in the system for other common business transactions. However, you cannot create your own tax events. Country Specifics
Germany Examples of tax events 10: Domestic Acquisition (15 I 1 Nr. 1)

100: Intra-Community Acquisition 310: Domestic Supply Of Goods And Services
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400: Intra-Community Supply (4 Nr. 1b UStG)
In accordance with Directive 2008/8/EC and its implementation under the Annual Tax Act 2009, intra-community service provision must also be declared in VAT tax returns as of January 1, 2010. For this purpose, new fields have been introduced in the VAT tax return: fields 21, 46, and 47. To use these fields for services provided in a foreign member state of the European Union, there are two new tax events for Germany and all other EU member valid as of January 1, 2010. Sale 455 "EU Sale of Services, Reverse Charge"
155 "EU Purchase of Services, Reverse Charge"
Errors may occur, if you use these tax events with an earlier tax date.
Deductibility Type
In addition to the tax rate, the percentage rate at which input tax is deductible plays a part. Depending on the type of company or the type of outgoing sales volume in which a certain incoming sales volume is incorporated, input tax can be deducted at a rate of 100%, 0% or a rate determined specifically for the company. For this purpose, you define deductibility types that represent the percentage rate. The two most frequently used deductibility types are Fully Deductible (100%) and Not Deductible (0%).
Tax Code
The appropriate method for calculating tax is determined by a combination of tax type, tax event, and tax rate type, and by the deductibility type for the input tax of the sales volume. You can define tax codes in the system to avoid errors when these parameters are entered manually. Each tax code represents a unique combination of the following parameters:
In sales Tax event

Tax types Related tax rate types
In purchasing Tax event

Tax types Related tax rate types Deductibility types
This makes it possible to define all parameters represented by a tax code in the document by selecting a tax code, without having to enter each parameter individually. Taxes can be calculated automatically only for those products in the product master. This is why you may sometimes have to enter the tax code manually, especially in purchasing. Alternatively, you may enter a product category so that the tax rate type for this category can be used, thus enabling automatic tax calculation. The system uses one unique tax code for a tax event only for those countries that have one tax type. Country Specifics
Canada and India In both countries several tax types can be taken into consideration for a tax event. India, for example, uses multiple tax types, and each tax type has multiple tax rate types and deductibility types. The number of possible combinations
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resulting from this makes it impossible to work efficiently with tax codes. In these countries, the tax code corresponds to the tax event.
Germany In accordance to Directive 2008/8/EC and its implementation under the Annual Tax Act 2009, intra-community service provision must also be declared in VAT tax returns as of January 1, 2010. For this purpose, new fields have been introduced in the VAT tax return: fields 21, 46, and 47. To use these fields for services provided in a foreign member state of the European Union, there are two new tax codes for Germany and all other EU member valid as of January 1, 2010: Purchasing: 430 "EU Purchase of Services, Reverse Charge, standard rate, fully deductible

Sale: 530 "EU Sale of Services, Reverse Charge" Exception for Italy: There the tax code for sales is: 540 "EU Sale of Services, Reverse Charge"
Exempted Region
In many countries there are regions and areas that have special status under tax law. For example, Bsingen and Helgoland are exempt from German value-added tax. In business configuration you can define the regions that are exempt from national tax regulations, or have a special status. Such regions can correspond to political regions, communities, or tax-free zones and are derived directly from the postal code.
Tax Jurisdiction Code

Tax jurisdiction levels are taken into account in tax calculation when taxes are in states, counties, and cities, but not on national levels of government. The different levels in a tax jurisdiction code represent different administrative levels. Fine-tuning this activity ensures that the system uses all administrative levels to determine the tax rate for each authority. In some countries, however, other government levels have tax jurisdiction. In these cases, you can adapt them. Define tax rates after you have maintained jurisdiction code. Country Specifics
United States In the United States, taxes are collected not only by states, but also by counties and cities; for domestic sales, taxation therefore depends on the state, county, and city in which your company and the goods recipient are located. For this purpose, you can enter a tax jurisdiction code in the master data of the company and the customer. The tax jurisdiction code represents the location of your company, your customer, or your supplier in a hierarchical structure, so that one country can have multiple states that, in turn, can have multiple cities and municipalities. The tax jurisdiction code is structured as follows: 2 alphanumeric characters for the first level; this is the standard state code

6 alphanumeric characters for the second level; for example, the county 6 alphanumeric characters for the third level; for example, the city 1 alphanumeric character for the fourth level, for example, the location or the area
It is not necessary to use all four levels. The number of levels used depends on the state. This function is currently used only in the United States. For the United States, tax jurisdiction codes have been preconfigured in the system on U.S. state level. You must enter further levels as required. If a tax jurisdiction code has not been assigned to a customer, the system uses the U.S. state in the address as a tax jurisdiction code. Example
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Tax Jurisdiction Code - Description New York State Albany County Allegany County
Tax Jurisdiction Code NY NYAL0181 NYAL0221
Taxation in % 4% 4% 4,5%
In the NYAL0181 tax jurisdiction code, NY stands for New York State, AL0181 stands for Albany County in New York State. For Albany County, two levels of the tax jurisdiction code are taken into consideration, and 8% (4% + 4%) of tax is levied. For Allegany County, 8.5% (4% + 4.5%) tax is levied.
Canada Other countries such as Canada have tax rates that depend on regions. This is because Canada is divided into provinces and territories. In these cases, use the Region field.
Tax Exemption
Tax exemption is an exemption from all or certain taxes that are levied in a country. In most cases, the basis for tax exemption is determined by legal requirements. In some cases, these may apply without having to account for them. To ensure transparency, many legislators require that the reason for tax exemption be specified on relevant documents such as invoices. Tax exemption reasons are provided in the system, cannot be changed, and are assigned to a tax type. A customer's direct payment and exempt organization certificates are applicable until they are revoked. The tax exemption certificates are determined automatically in a sales document. You can assign relevant tax exemption reasons to product and customer master data by selecting the relevant entry in the Tax Exemption Reason fields. For more information, see Tax Exemption Certificate Processing [354]. Country Specifics
United States For the United States, several tax exemption certificate types are available: Direct Payment Certificate - continuous

Exempt Organization Certificate - continuous Exempt Use Certificate - continuous Exempt Use Certificate - single Resale Certificate - continuous Resale Certificate - single
The state must be added also. Only the following tax exemption certificate types can be found automatically, since only in these cases is it certain that the exemption certificates always apply: Direct Payment Certificate continuous
Exempt Organization Certificate continuous
For all the other certificate types, you need the information from the customer whether the certificate can be used for the current transaction. You must then assign the types manually in a sales transaction.
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Legal Text Information

Legal text information is a textual explanation of the exemption reasons printed on invoices. These texts explain why certain transactions are exempt from tax, thus allowing you to meet legal requirements. The legal text information is printed on a customer invoice, if, for example, a tax exemption is applicable. However, if the texts are not available in the required language, the system uses the English text for the invoice.
7.1.5.1.2.3 Tax Exemption Certificate Processing Overview

A tax exemption is an exemption from all or certain taxes of a state or nation in which part of the taxes that would normally be collected from an individual or an organization are instead foregone. A tax exemption certificate is a certificate sent by a customer to a company claiming exemption from tax on sales. In this system, the tax exemption certificate:

Indicates the period of time during which the tax exemptions can apply Indicates if the tax exemptions apply to a single sales transaction or multiple sales transactions Indicates if the exempted (cumulated) amount exceeds a maximum amount when the exemptions apply in multiple sales transactions This applies to the Tax Exemption Certificates for France only.
Indicates the reason for tax exemption
In France, a customer can apply to the authorities for exemption from VAT. If the exemption is granted, the customer receives a letter of confirmation including a license number and the period for which he is exempt from VAT. The customer sends this letter to a vendor, who must then take the tax exemption into account when invoicing the customer. The vendor may not include any tax in customer invoices for the validity period of the tax exemption license.
Prerequisites
Your customer has registered with the tax authority for tax exemption and received a tax exemption certificate from them. This certificate has been assigned to the account.
Process Flow
The following steps explain the typical process flow for the Customer Tax Exemption Certificate in customer invoicing. 1. When you create a sales/service order or customer invoice, the system searches for existing tax exemption certificates and automatically assigns a valid certificate. You have an option of rejecting the proposal and prevent the exemption to apply at header/line item level. You can manually assign an existing certificate and the relevant exemption reason at header/line item level. You can see a set of elements (fields, links, push button, check box) related to tax exemption certificates when you create or view a sales/service order or a customer invoice. These elements are only visible if the seller company is located in the US or France.
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2. You can also create a new certificate if it does not exist and assign it immediately to the sales/invoicing document. The system allows you to enter the relevant tax exemption information sent by the customer directly in the business document. For more information, see, Create Tax Exemption Certificates 3. The certificate records and shows the sum of the amounts which were exempted. The amount exempted by each certificate during the invoicing process is cumulated on the corresponding certificate. In France, you can set a maximum tax amount that cannot be exceeded. The system prevents the cumulated amount to exceed the limit during the invoice creation process if a certificate only allows a limited amount to be exempted. The cancellation of invoices including certificates reverts the accumulation performed previously. In the Account Management work center, under the Reports view, you can monitor in real time the tax exemption certificates created in the system and sent to the company.
7.1.5.1.2.4 Tax Determination with Reverse Charge Mechanism Overview

Value-added tax (VAT) is charged revenue from the sale of goods and services. This means that an entrepreneur issues a customer (as the service recipient) with an invoice that includes VAT, and pays the VAT to the responsible tax authority. As a result of this, the entrepreneur is the tax payer who is liable for VAT. In certain cases, however, the customer is required by law to be liable for VAT, and to pay it to the relevant tax authority. In this case, the entrepreneur issues an invoice without VAT, but with a notification indicating that the tax debt has been transferred to the customer. The customer must calculate and pay the VAT to the tax authority, and can claim input tax deduction at the same time as usual. The transfer of tax debt to the service recipient is called Reverse Charge Mechanism and reverses the tax liability.
Automatic Tax Determination with Reverse Charge Mechanism

Country Specifics for Germany Some services, such as those provided by a company located abroad, or services that are provided for a service recipient located abroad are taxed according to the reverse charge mechanism. From the perspective of the seller, the transaction must be reported, but the tax debt transfers to the account. According to Directive 2008/8/EC and its implementation under the Annual Tax Act 2009 as of January 1, 2010, this is the basic rule for services that are provided for a company abroad. This basic rule is determined automatically, if the head office of the company providing the goods or services is in any EU member state. No tax exemption reason code must be entered in the service master. For Germany, the system currently only covers the transfer of tax debt for other services provided by an entrepreneur located abroad if these services are provided domestically ( 13b Abs. 1 Nr. 1 UStG), or if a German company provides other such services for a service recipient located abroad. The process flow for tax determination describes the determination of tax event 240 Reverse Charge Acquisition 13b II 1 Nr. 1 UStG, tax event 312 Export of Service, Reverse Charge, and the anomalies to be taken into account: 1. Create a sales order, a purchase order, or an invoice. 2. While the document is being processed, the system transfers the tax relevant data to tax determination. Examples of tax relevant data for reverse charge mechanism are: Location of supplier and buyer
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Sale of a service The seller company must be located in Germany. The address of the seller is used, and the system normally uses the standard address of your company unless you have overwritten the address in the sales order on the Involved Parties tab.
The service recipient must be located abroad. The location where the service provision takes place is used and must not be in Germany. If the recipient is a private individual, the service can only be subject to reverse charge mechanism if it is provided in the European Union (EU). If items in an invoice contain services that have been provided at different locations (according to the address of the service or goods recipient on the Involved Parties tab), these addresses are used first.
Purchasing a Service The supplier must be located abroad. The address of the supplier is used as a basis, and the system uses the standard address.
The service recipient must be located in Germany. The location where the service is provided is decisive. It is also possible that individual invoice items contain different locations where the services have been provided (according to the address of the goods recipient). In this case, this is used as a priority.
Tax attributes of products Tax rate type and tax exemption reason can be different for each country, region, and tax type. In the United States, for example, services are not normally subject to tax, so the tax exemption reason should be assigned in the product master data. Enter the following settings for reverse charge mechanism in the master data for services on the Sales > Taxes and Purchasing > Taxes tabs as required: Tax Exemption Reason: Buyer liable for VAT
The Taxable at destination checkbox must not be selected.
3. The system processes all tax-relevant data in tax determination. 4. The system calculates tax using the following components: Tax event, for example 240 Reverse Charge Acquisition 13b II 1 Nr 1 UStG for purchasing or 312 Export of Service, Reverse Charge for sales

Tax codes Tax type Tax rate type such as the complete value-added tax rate with which the tax rate is determined as a percentage, for example 19% Taxable amount
5. The system enters the result of the tax determination and the tax calculation in the document currently being processed. The calculated tax is displayed on the Pricing tab. All tax details determined by the system are displayed on the Tax Details tab, such as the Tax Country and the Tax Code of the tax country. If reverse charge is determined for a sales order or a manual invoice, a note is displayed on the printed invoice that the customer must pay tax. For more information on the general process of tax determination, see Tax Determination [342]. The system cannot process other reverse charge mechanism scenarios in the automatic tax determination, so these must be checked manually.
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Manual Control for Reverse Charge Mechanism

For some countries there are also other sales or purchasing processes that are subject to reverse charge but cannot be determined automatically by the system, as for example, in Germany sales according to 13b (5) UStG or purchases according to 13b (2). Country Specifics for Germany
For mobile radio units and integrated circuits with a tax date as of July 1, 2011 and an invoice amount of at least 5000 Euros, reverse charge applies according to 13b (2) Nr.10 UStG. In this case you have to change the tax code manually to one of the following: 15 Reverse Charge Acquisition 13b II 1 Nr. 10 UStG
515 Reverse Charge Supply 13b II 1 Nr. 10 UStG
For these processes, the system provides the tax events 313 Reverse Charge Supply 13b V UStG and 50 Reverse Charge Acquisition 13b II 1 Nr 4, 6 - 9 UStG, 11 Reverse Charge Acquisition 13b II 1 Nr 2 UStG, 12 Reverse Charge Acquisition 13b II 1 Nr 3 UStG, 13 Reverse Charge Acquisition 13b II 1 Nr 5 UStG and 240 Reverse Charge Acquisition 13b II 1 Nr 1 UStG. But you need to create your own tax code in your system. If you obtain your sales revenue according to 13b (5) UStG, you must enter the tax code manually.
Tax Events Stored in the System

Country Specifics for Germany The following tax events are currently stored in the system and can be used to create tax codes for Germany:
Purchase: 11 Reverse Charge Acquisition 13b II 1 Nr. 2 UStG

12 Reverse Charge Acquisition 13b II 1 Nr. 3 UStG 13 Reverse Charge Acquisition 13b II 1 Nr. 5 UStG 50 Reverse Charge Acquisition 13b II 1 Nr. 4, 6 9 UStG 240 Reverse Charge Acquisition 13b II 1 Nr.1 UStG 15 Reverse Charge Acquisition 13b II 1 Nr. 10 UStG
Sales: 312 Export of Service, Reverse Charge

313 Reverse Charge Supply 13b V UStG 315 Reverse Charge Supply 13b II 1 Nr. 10 UStG
The following tax code and tax events combinations are provided by the system and determined automatically:
Tax code 504 Not taxable (reverse charge mechanism) is linked to tax event 312 Export of Service, Reverse Charge Tax code 530 EU Sales of Service, Reverse Charge is linked to tax event 455 EU Sale of Service, Reverse Charge
For purchasing, tax code 430 EU Purchase of Services, Reverse Charge, Standard Rate, Fully Deductible with tax event 155 is available. If you need further tax codes, you can create them under Define Tax Codes of the Tax on Goods and Services activity in Business Configuration Implementation Projects Activity List Fine-Tune .
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When you create a tax code, ensure that you provide the tax type under Details.
7.1.5.1.2.5 Third-Party Order Processing Taxation Overview

Third-party order processing scenarios involve at least three parties: Seller, account, and supplier. A Third-Party Order Processing is a sales transaction that is conducted by several parties for one item, where the item is shipped directly from the supplier to the account or ship-to party. For more information concerning the general processing in the system, see Third-Party Order Processing. Chain transaction means consecutive supplies of goods between three or more legal entities, where the contractual obligations of all parties in the chain are discharged by a single movement of goods from the first supplier in the chain to the final customer. From a taxation point of view, the scenarios where the sales transaction crosses borders and the subject to tax has to be determined, are of interest. This also has an impact onto the country where the taxes have to be paid. In the following processes, the system supports the user by displaying warning messages and triggering a check of the tax codes:
You are a supplier in a chain transaction and you enter a ship-to party that is different from the account. The system displays the message if the head offices of the ship-to party and your company are in different countries. In a third-party deal, you are the company that creates a sales order to which an external supplier is assigned. The external supplier delivers the goods directly to the customer. These transactions are generally not invoiced automatically during an invoice run.
Country Specifics in case the seller and supplier are different:
Germany: These transactions are not invoiced automatically during an invoice run if the head office of your company is in Germany.
Value-added tax for chain transactions is treated differently, especially if the item is transported across a state border. It is necessary to decide on a case-by-case basis, which of the companies involved is allowed to issue a tax-exempt invoice. If the tax has not automatically been calculated correctly in this transaction, or if tax has been calculated even though the transaction is tax-exempt, change the tax code and, if necessary, the tax country, on the Taxes tab accordingly.
Intra-Community Triangular Trade

An Intra-Community Triangular Trade is a special kind of third-party order processing, where all three participants are located in different EU member states. Under certain circumstances, a simplification can be applied to intra-community triangular trades. The prerequisites for the application of this process are:

The three companies transact business for the same item. All participating companies are registered in different EU member states for value-added tax purposes. The item goes straight from the first supplier to the final account. The item goes from one EU member state to another. The first supplier or the first company is responsible for the transport of the item.
Country Specifics
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Germany: If the simplification can be applied to the triangular transaction, then the 512 - Triangular Transaction tax code can be entered manually in the invoice.
7.1.5.1.2.6 Tax on Goods and Services - Configuration Guide

In this configuration activity, you can create and change parameters required for the tax determination in sales, purchasing, and service processes such as tax jurisdictions, currency conversions, exempted regions, legal text information, and tax codes. These parameters are required for the system to determine the tax due for a business document. To comply with country specific legal requirements, currency conversion types are required. This includes the exchange rate type and conversion types that must be used to convert tax amounts from the document currency to the reporting currency. To find the Tax on Goods and Services activity, go to the Business Configuration work center and choose the Implementation Projects view. Select your implementation project and click Open Activity List . Select the Fine-Tune phase, then select the Tax on Goods and Services activity from the activity list.
Prerequisites
You have completed the Tax Settings for Purchasing activity for purchasing processes. To find this activity, go to the Business Configuration work center and choose the Implementations Projects view. Select your implementation project and click Open Activity List . Select the Fine-Tune phase, then select the Tax Settings for Purchasing activity from the activity list.
Business Background Tax Determination

As a rule, companies are legally required to calculate taxes on products that they buy or sell, and to levy these taxes from their customers. After the products have been provided, the taxes must be declared and levied to the respective tax authorities. The system supports you by providing a substantially automated tax calculation for the following tax types: Value-Added Tax (VAT), Sales and Use Tax, Withholding Tax. The system also provides a reporting tool that gives you effective control over your obligatory declaration of these taxes. For more information, see Tax Determination [342].
Master Data for Tax Determination

For more information, see Master Data for Tax Determination [347].
Tasks Define Currency Conversion Type

1. To create a new currency conversion, click Add Row . 2. Select the country for which the exchange rate is valid.
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3. Enter the date for the end of the validity period for the exchange rate type and conversion type. 4. Enter the type of exchange rate used such as Historical Currency Rate or EMU Regulation Fixed Exchange Rate. 5. If necessary, change the conversion type which is defaulted to Mid Value to either Bid Value or Ask Value. 6. Save your entries.
Define Exempted Regions

1. To define an exempted region, click Add Row . 2. Select the country of the exempted region. 3. Enter a code for the exempted region. 4. Enter a description for the region. 5. Select the status of the exempted region. 6. Optional: Under Details, enter the Postal Code. 7. Save your entries.
Define Tax Rate Schedules

1. To define tax rates and validity dates, click Add Row . 2. Select a country for which you want to create a tax rate schedule. 3. Select the applicable tax type of the taxes that must be declared and paid to the respective tax authorities such as value-added tax, sales and use tax, and withholding tax. 4. Select the tax rate type, for example, Standard, Reduced, or Exempt Rate. 5. Enter the date from which the tax rate is valid. 6. Enter the rate as a percentage. 7. Save your entries.
Define Standard Phrases for Legal Text Information

We recommend that you create a standard phrase specifically for each country since exemption reasons can differ for each country. If a standard phrase is not available for the required language, the English text is printed in the invoices. All languages are displayed in this view. To enter the legal texts for a specific language, you must be logged on to the system in that language. 1. To define standard phrases for legal text information, click Add Row . 2. Select the country for which the legal text information is valid. 3. Select the applicable tax type for which legal texts are required such as value-added tax, sales and use tax, and withholding tax. 4. Select the number of the Tax Exemption Reason. 5. Check the selection of the Language field. It is preset according to the language in which you are logged on and must correspond to the language of your legal text. 6. Enter the legal text explaining the legal basis of the exemption.
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This text is then included on the invoices where required. 7. Save your entries.
Define Tax Codes

For more information, see here.
Follow-On Activities
After you have completed the tasks here, we recommend that you check the tasks of the country-specific activities that are required for countries that you have scoped.
7.1.5.1.3 Tax Determination US
Here you can find tax information specifically for the United States.
Delivery Taxation
Taxes on materials deliveries within the United States are levied according to the law of the destination state (Ship-to). Only in California and Texas are the deliveries taxed according to the state of origin (Ship-from). Taxes on service deliveries are levied according to the law of the state of destination. You can add your own combinations in business configuration and decide which combination is origin-based or destination-based for an intrastate transaction, which means that ship-to and ship-from are the same US state. To find the activity, go to the Business Configuration work center and choose the Implementation Projects view. Select your implementation project and click Open Activity List . Select the Fine-tune phase, then select the Tax on Goods and Services US activity from the activity list.
Nexus
Nexus is a connection between a taxpayer and a state where the taxpayer has to pay taxes. The rules to establish the connection between the two differs from state to state. However, with this nexus a state is required to collect sales tax for sales. Therefore a sale within a particular state is only taxable in the system if the seller company has nexus in the state. If the seller does not have a nexus, no sales tax will be determined and the system assigns tax code 507 Non Taxable Sale Under Nexus Rules to the sales document. This means the seller company issues an invoice without tax for nexus reasons. The transaction is recorded statistically in the tax register. If your company has nexus in a state, you must have the following settings prepared:
You created a tax authority for this state in the Tax Management work center. For more information, see Quick Guide for Tax Authorities (Tax Management) [363]. You created entries in the system for every tax authority to which tax returns have to be submitted. You created a company tax arrangement for every tax authority that is relevant.
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You entered a tax registration number for the company tax arrangement. This documents that the company is registered in the state where the tax authority is located, and provides the basis for nexus determination in the tax determination.
If a company tax arrangement has been created properly for a state, and a sale takes place in this state, the tax determination works as described in Tax Determination [342].
7.1.6 Access to Tax Data by Tax Authorities (GDPdU) Overview

This text describes how the SAP Business ByDesign system ensures that tax authorities can access tax data in the system as required by law.
Prerequisites
Tax payers must allow tax authorities to access all tax-relevant data in their data processing systems. The applicable regulations are described in a paper by the German Federal Ministry of Finance, 16 July 2001 - IV D2 S 0316 136/01, published in the Bundessteuerblatt (Federal Tax Gazette) part I, page 415 as the German Principles of Data Access and Auditing of Digital Documents (GDPdU). Similar regulations also apply in other countries. For example, in Austria, tax-relevant data must also be made accessible on data carriers for the tax authorities, according to the regulations stipulated in Section 131 (subsection 3) and Section 132 (subsection 3) of the Bundesabgabenordnung (Federal Tax Code) of Austria. The GDPdU contains rules for complying with the right of access to data. The GDPdU stipulates that tax auditors are to be granted the following means of access:
Z1: Direct Read-Only Access

The GDPdU grants tax auditors the right to access the company's data processing system directly. That is, they are authorized to evaluate tax-relevant data themselves directly in the system. Tax auditors are authorized to access the stored data (including master data and links) in read-only mode using the tax payer's hardware and software. Only this hardware and software may be used by tax auditors to access the electronically stored data. Remote (online) access to the data processing system by the tax authority is therefore not allowed. Read-only access includes reading, filtering, and sorting the data using the reports and evaluation tools available in the data processing system. For this, you use the Audit work center in SAP Business ByDesign.
Z2: Indirect Access

For the purpose of enabling read-only access by the tax auditor, the data is collected and electronically processed by the tax payer, or by a third party authorized by the tax payer, following the tax auditor's instructions. The tax auditor can only request electronic evaluation using the evaluation tools available in the tax payer's data processing system. In SAP Business ByDesign you can implement Z2 access organizationally using the reports available in the work centers to prepare the data requested by the auditor. The selection options should be used in such a way as to ensure that the report contains all tax-relevant data in non-condensed form. If you are in doubt about which data to select, consult with the auditor in advance. You can then download the reports into Microsoft Excel. To ensure that the data in the Microsoft
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Excel file matches that in the system, you can set up a check process for generating the reports and downloading them to Excel based on the dual control principle.
Z3: Data Carrier Release

The tax payer shall create data records for the tax auditor containing the tax-relevant data and save it to a data carrier that can be electronically processed. This data carrier shall be handed over to the auditor for evaluation. In SAP Business ByDesign, you can implement Z3 access by using the extraction run for financial data that you can find in the General Ledger work center under Periodic Tasks. The Z3 - Data Carrier Release also enables the electronic processing of the Austrian tax-relevant data as required according to the Bundesabgabenordnung (Federal Tax Code). The Austrian-specific reporting package contains the reports which are usually required by tax authorities and from which you therefore have to extract and retain data from. The tax authority can claim any of these rights individually or in combination. The right to access data is restricted exclusively to data related to taxes. The data must be in the German language.
Tax-Relevant Data in SAP Business ByDesign

The regulations contained in the GDPdU grant to tax authorities the right to access tax-relevant data. In particular, this means you must allow access to financial and management accounting data. The following overview contains standard reports that cover typical auditing objectives. As the user, you must clarify with the auditor which data is tax-relevant in your case and which reports you must select to provide the requested information. Overview of Reports in SAP Business ByDesign
7.2 Tax Authorities View

7.2.1 Quick Guide for Tax Authorities (Tax Management)
This view enables you to enter and edit master data for domestic and foreign tax authorities as well as financial data relevant for VAT/sales tax or withholding tax and your company tax arrangements. In addition to VAT-related or withholding tax-related data, the tax authority master data can also include information that is relevant for other work centers, such as the Payroll Processing work center).
Business Background
The tax authority master data is required for the system to be able to make tax entries, create tax returns, and enter payments from or to the tax authority correctly. An integral part of the tax authority master data is the company tax arrangement. It covers all regulations between the company and the tax authority On the Company Tax Arrangement tab, you enter all tax numbers of your company and store the rules applicable to the creation and submission of tax returns for VAT or withholding tax (US), which have been agreed upon between the company and the relevant tax authority. The Company Tax Arrangement screen provides you with an overview of all tax authorities to which your company or subsidiary is registered.
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So that the system can trigger and post tax payments, you must have entered the data for the payment transaction and have marked the relevant tax return type in the Tax Return Arrangement tab as relevant for payment. For externally-initiated tax payments, that is tax payments entered in another work center to the Tax Management work center, the system can only use the automatic payment allocation (Payment Management work center) to identify a payment as a tax payment if a tax authority is specified as a payee or payer. Then the tax payment can be assigned correctly in the Tax Management work center or posted as a tax prepayment. For more information, see Quick Guide for Tax Payments [382].
Tasks Enter Tax Authority Master Data

1. Choose Tax Authorities New Tax Authority . Enter the address and communication data and save your entries. The system assigns a unique number to the tax authority. 2. Choose View All, switch to the Financial Data tab and enter the relevant payment methods for your company or subsidiary. 3. Enter the accounts that are used for payment transactions with the tax authority under Bank Data. 4. Switch to the Company Tax Arrangements tab and enter the standard settings of the tax return types that are valid for your company. Here you store all subsidiaries that are registered with the selected tax authority: Valid From / Valid To enables you to define the general period of validity of the company tax arrangement.
If you are registered with a tax authority abroad, you also enter your foreign VAT identification numbers on the Tax Numbers tab. Note: If you trade with a third country or EU country, or if intra-community goods and services are provided, companies need to be registered with the relevant tax authority abroad in some cases. If this applies to your company, you also have to enter the master data of the foreign tax authorities and the respective tax numbers (see also IntraCommunity Movement [332]). Switch to the Tax Return Arrangements tab. For a payment-relevant tax return type, enter the amount up to which a difference from an externally initiated tax payment and determined tax amount is entered directly as an expense under Tolerance for Tax Payments (see also Quick Guide for Tax Payments [382]). The Carry Forward indicator is only relevant for the US. Set this indicator if a receivable from the tax authority needs to be cleared in the subsequent period.
5. Save your entries. The master data record of the tax authority is now active.
7.3 Manual Tax Entries View

7.3.1 Quick Guide for Sales and Use Tax Entries (US)
In this view, you enter sales and use tax items that the system does not include automatically with business transactions. You can access the Sales and Use Tax Entries view from the Tax Management work center under Manual Tax Entries.
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We strongly recommend that you do not make any entries to tax accounts directly in the general ledger. These entries do not create entries in the tax register and are not entered in the tax subledger. You otherwise have to manually add the tax amounts posted in the general ledger in the VAT return forms before they are sent to the tax authority. Note that when you make a manual tax entry, the system does not check whether the combination of G/ L account and tax code that you have entered is permitted.
Business Background
Each manual tax entry is entered automatically in the tax register [315] as an open tax item, posted to the relevant tax account, and included in the tax return run for the affected reporting period. You make manual sales and use tax entries in the following cases, for example:

You have created an invoice without tax data. The tax item or items were not yet reported to the tax authority. You execute a tax correcting entry for a delivery or service granted free of charge.
Tasks Check Predefined Settings and Tax Data
Make sure that the tax-relevant data of the company is defined for your tax authority (see also Quick Guide for Tax Authorities [363]). To display the reported or open tax items for a selected period, you can use the reports Open VAT / Sales Tax Items, Reported VAT / Sales Tax Items and All VAT / Sales Tax Items.
Make a Sales and Use Tax Entry

1. Click New and enter the company and currency data as well as the posting date. The current date is proposed as the tax due date. 2. In each line item, enter the appropriate account determination group (G/L Account column), the tax code to be used, tax jurisdiction information (State and Tax Jurisdiction Code) or ZIP code, and also the credit or debit amount to enable the gross amount balance to be cleared. 3. To test the validity of the entries, choose Check . . The system automatically assigns
4. If you do not want to make the entry yet, choose Save an ID to the manual tax entry.
5. To make the posting to the tax accounts and to enter the tax items in the tax register, choose Post . The system creates a journal entry for which you can now display the journal entry ID.
7.3.2 Quick Guide for VAT Entries

You make these tax entries to enter tax items manually or to make tax adjustments to VAT or input tax that the system does not include automatically with business transactions.
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You can access the VAT Entries view from the Tax Management work center under Manual Tax Entries.
We strongly recommend that you do not make any entries to VAT accounts directly in the general ledger. These entries do not create entries in the tax register and are not entered in the tax subledger. You otherwise have to manually add the tax amounts posted in the general ledger in the VAT return forms before they are sent to the tax authority. Note that when you make a manual tax entry, the system does not check whether the combination of G/ L account and tax code that you have entered is permitted.
Business Background
Each VAT entry is entered in the tax register [315] as an open tax item, posted to the relevant VAT account, and included in the VAT return run for the affected reporting period. You make manual VAT entries in the following cases, for example:
You have created a business transaction and entered the incorrect tax rate or tax code by mistake. The tax item or items were not yet reported to the tax authority. Goods and Services Granted Free of Charge [327] (withdrawals from stock for private use) Intra-Community Movement [332]
Make sure that the tax-relevant data of the reporting company is defined for your tax authority (see also Quick Guide for Tax Authorities [363]). To display the reported or open tax items for a selected period, you can use the reports Open VAT / Sales Tax Items, Reported VAT / Sales Tax Items and All VAT / Sales Tax Items.
Manual VAT Entries

1. Click New and enter the company and currency data as well as the posting date. The current date is proposed as the tax due date. 2. In each line item, enter the appropriate account determination group (G/L Account column), the tax code to be used, and the credit or debit amount so that the gross amount balance is then cleared. 3. To test the validity of your entries, choose Check . . The system automatically assigns
4. If you do not want to make the entry yet, choose Save an ID to the manual tax entry.
5. To make the posting to the tax accounts and to enter the tax items in the tax register, choose Post . The system creates a journal entry for which you can now display the journal entry ID. For information on how to report tax items for a previously created tax return, see Subsequent Reporting of Tax Items [321].
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7.3.3 Quick Guide for Withholding Tax Base Amount Entries (US)
In this view, you enter sales relevant for withholding tax together with your suppliers if the sales were not included when the supplier invoices were entered. This applies only to sales for which no withholding tax was retained. You can access the Withholding Tax Base Amount Entries view from the Tax Management work center under Manual Tax Entries.
Business Background
Sales relevant for withholding tax (withholding tax base amounts) are entered automatically as tax items in the tax register [315] and taken into account for the relevant reporting period in the tax return run for withholding tax. You make manual corrections to sales relevant for withholding tax in the following cases, for example:
You selected the incorrect withholding tax code when entering a supplier invoice without a purchase order reference.
At the time the supplier invoice was posted, you had not classified the relevant supplier as being relevant for withholding tax.
You accidentally indicated a supplier as being relevant for withholding tax, but had already posted the invoices for that particular supplier.

To be able to enter withholding tax base amounts manually, you need to have made the following settings:
Make sure that the tax-relevant data of the company is defined for your tax authority (see also Quick Guide for Tax Authorities [363]). You have specified in the system that the company has to report withholding tax. To do this, go to the Tax Authorities view and choose an entry that you want to edit. Switch to the Company Tax Arrangement tab and set the Withholding Tax indicator. You have specified in the relevant supplier master data that the supplier is subject to withholding tax. To do this, in Supplier Base work center under Suppliers, select the relevant Edit Financial Data Tax Data and enter the data. At this stage, rows and choose you also need to have entered the tax number of the supplier.
Enter a Withholding Tax Base Amount

1. Click New and Tax Entry and enter the company and currency data as well as the posting date. The current date is proposed as the tax due date. 2. Generate a new line item in the lower area of the screen, select Withholding Tax Code , and enter the sales revenue under Debit Amount or Credit Amount . 3. Save your entries. The system automatically assigns an ID to this manual entry. 4. To create an entry in the tax register, choose Release .
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7.4 Tax Returns View

7.4.1 Quick Guide for Sales and Use Tax Returns (US)
You can access the Sales and Use Tax Returns view from the Tax Management work center under Returns Sales and Use Tax Returns .
Tax
This view displays the sales and use tax returns that were created previously in the Sales and Use Tax Return Runs [388] view.
Business Background Sales and Use Tax

Sales Tax is levied on the sale of taxable goods and services for transactions made within a state (intra-state transactions), or if the seller's subsidiary business is located in the state of the buyer (inter-state transaction). In both cases, the seller collects the taxes from the buyer and pays the VAT to the state tax authority. Use Tax is levied on the purchase of goods and services for purchases from other states (inter-state transaction). If the seller does not have a separate subsidiary in the same state as the buyer (that is, no nexus), the seller then has no authorization to collect or pay taxes. The buyer pays the use tax in the state in which the goods are consumed. Certain goods, interim references, and materials intended for resale or further processing are tax-exempt and not subject to use tax. Self-Assessment generally affects large-scale businesses that are in possession of a tax exemption certificate (such as a direct payment permit). These companies do not transfer taxes to the seller when making a purchase, but instead pay the taxes directly to the tax authority. The tax exemption certificate must be presented to the seller.
Entering Sales and Use Tax Items

In the following cases, the system determines and enters the sales and use tax items:
You have entered a customer invoice for a customer located in your state (intra-state transaction). Your tax return displays sales tax that you need to report and pay to your state tax authority. You have entered a customer invoice for a customer located in a different state (inter-state transaction). You company has a subsidiary (and therefore a nexus) in the state where the customer is located. Your tax return displays sales tax that you need to report and pay to the tax authority located in the state of the customer. You have entered a supplier invoice for a supplier in a different state who does not have a business presence (or nexus) in your state. Your return displays the use tax that you need to pay. For a customer in the Receivables work center or a supplier in the Payables work center, you have manually entered a New Charge/Credit with a tax code for sales and use tax. The tax return displays a Manual Payables/Receivables Entry. (Note: The system always uses the state in which the business residence of the customer or supplier is located.) You have made manual tax entries for sales and use tax.
In the following cases, the system does not determine and enter any sales or use tax items:
In the Supplier Invoicing work center, you have entered a New Invoice Without Purchase Order using a product that is tax-exempt in your state. In this case, your tax return displays the tax base amount but not the sales tax.
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You have entered a purchase or customer invoice using a product that is intended for resale or further processing. In this case, your tax return displays only the tax base amount but not the use tax. You have entered a customer invoice for a customer with a tax exemption certificate (such as a direct debit permit). Your tax return displays only the tax base amount but not the use tax.
Payments for Sales and Use Tax

For your regular tax prepayments, you determine the amount to be paid by creating a tax return in a Test Run. (Note: You cannot release test returns. The tax items of these test returns are not entered.) You create a tax return to be reported for the total reporting period in a sales use tax return in which the system determines the remaining tax payable to be paid. To trigger tax payments, you have the following options:
You trigger a tax prepayment without rounding amount in the Tax Management work center under Tasks New Tax Prepayment .
Common
You trigger a tax payment for a tax return without rounding amount in the Tax Management work center using the tax return. If rounded tax payments are mandatory in a state, you trigger the payment in the Payment Management work center (for example, with an outgoing check).
For more information about the individual procedures, see below in the section Tasks.
Error in the Tax Return

If you determine an error in a tax return, you have the following options:
You can delete a sales and use tax return with the status In Preparation at any time. (Note: You can use this option for the tax returns that you created in the test run. Note that tax returns created in the test run cannot be released.) A sales and use tax return with the status Reported can only be canceled. Alternatively you can create an amending tax return for the same reporting period in a correction run. All tax items of the same reporting period are entered again in this run. For more information about how tax items can be subsequently taken into account, see Subsequent Reporting of Tax Items [321]. A sales and use tax return with the status Completed for which an externally-initiated tax payment was already triggered can only be canceled if you have removed the payment allocation in the Payment Management work center. A tax return for which payment clearing was already performed cannot be canceled.
For more information, see:

Quick Guide for Sales and Use Tax Entries (US) [364] Quick Guide for Sales and Use Tax Return Runs (US) [388] Tax Due Date of Tax Items [319] Status of Tax Returns [317] Quick Guide for Tax Payments [382] (in particular the Business Background section) Example Scenario for Tax Returns [316]
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Tasks Check Predefined Settings

To be able to create sales and use tax returns correctly in the system, you need to have entered the following settings and master data:
Check the fine-tuning settings in Business Configuration in the tasks Tax Returns for Goods and Services and Tax on Goods and Services. Make sure that master data is defined for the Tax Authorities (see also Quick Guide for Tax Authorities [363]). You need to have entered your tax information for sales and use tax under Company Tax Arrangement Arrangement. Tax Numbers , and also under Tax Return
You have entered the regions and tax exemption reasons for sales and use tax in the Product Data work center for the appropriate material or services on the Purchase or Sales tab under Taxes. In the Business Partner work center, you have entered the tax-relevant data for a supplier. To do this, select a supplier and choose Edit Financial Data . Go to the Tax Data tab page. Enter the tax number applicable in the state of the supplier as well as an existing tax exemption, for example, if the supplier has no business presence (or nexus) in your state. (Note: For the supplier, you need to specify the use tax in the invoicing document using explicitly the tax code.)
In the Business Partner work area, you have entered the tax information for use tax applicable to a customer. To do this, select a customer and choose Data Edit Financial . Enter the tax data on the Tax Data and Tax Exemption Certificate tabs.
Check Tax Data

To display the open or reported sales tax items for a selected period and the sources documents, you can use the reports Open VAT / Sales Tax Items, Reported VAT / Sales Tax Items and All VAT / Sales Tax Items. To check the details of a tax return, proceed as follows: 1. Select the value by which you want to filter from the filter display. 2. Select the row of the tax return. The system displays the tax information for the tax return in the lower screen area. 3. To obtain an overview of the individual sales revenues with their source documents and tax events, choose View , switch to the Tax Return tab, and click Details in a field in the tax form.
Submit Tax Data and Release Tax Return

Note: The function for submitting tax data to the tax authority directly from the system is not provided. Once you have sent the tax data to the tax authority, you must release the tax return in the system. The release results in the following:
The status of the tax return is changed from In Preparation to Reported.
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The tax items of the tax return obtain the status Reported in the tax register and are now displayed in the Reported VAT / Sales Tax Items report. The balance of the relevant tax accounts is transferred to the tax payable account (tax clearing account).
Trigger Tax Prepayment for a Test Run Tax Return (Internally Initiated)
To trigger a tax prepayment, the amount of which you have already determined in a tax return test run, proceed as follows: 1. Choose Common Tasks New Tax Prepayment .
2. Enter the company tax arrangement, tax amount, and posting date. Enter a date of the affected reporting period as the clearing date. 3. Choose Execute. The payment is assigned an internal number. The released payment is automatically entered and posted as a clearing item in the tax register. The journal entry ID of the generated journal entry is now displayed in the payment. Note: If the payment has inconsistent data or payment or bank information is missing in the master data of the tax authority, a task Review Tax Payment is created in your worklist. 4. You find the payment with the status Ready for Transfer in the Payment Management work center under Payment Monitor .
Trigger Tax Payment for a Tax Return (Internally Initiated)

To trigger a tax payment for a reported tax return, proceed as follows: 1. Select a tax return with the status Reported and then choose Pay .
2. If necessary, change the payment date and proposed posting date and choose OK . The payment is assigned an internal number and the status In Preparation. The released payment is automatically entered and posted as a clearing item in the tax register. The journal entry ID of the generated journal entry is now displayed in the payment. Note: If the payment has inconsistent data or payment or bank information is missing in the master data of the tax authority, a task Review Tax Payment is created in your worklist. 3. You find the payment with the status Ready for Transfer in the Payment Management work center under Payment Monitor . Once the payment is made, the tax return is given the status Completed.
Trigger Check Payment to Tax Authority (Externally Initiated)

Rounded tax payments are mandatory in some states. To trigger a check payment for this, proceed as follows: 1. Go to the Payment Management work center and choose under Common Tasks New Outgoing Check. 2. Enter the payment and bank data and the payee of your tax authority. If necessary, change the posting date and date of issue proposed by the system and choose Release. 3. You find the payment under Payment Monitor with the status Ready for Transfer. If the check was issued, you change the status of the check payment to In Transfer. 4. The system has automatically identified the payment as a tax payment using the Payment Allocation of the payment to the tax authority. It is now displayed in the Tax Management work center under Tax Payments.
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If the system could not find an appropriate tax return for the payment or the amount of the assigned tax amount differs from the amount of the tax payment, a task Review and Release Tax Payment is sent to the worklist of the Tax Management work center. Proceed as described under Task - Review and Release Tax Payment. If the tax payment is released, the status of the underlying tax return is automatically changed from Released to Completed.
7.4.2 Quick Guide for Withholding Tax Returns (US)

This document contains text, that is specific to the US. To ensure that the system displays the correct text, select Personalize My Settings settings and login again. Onscreen Help . Choose US United States in the drop-down menu, save your
Important tasks
See the US specific document.
7.4.3 Quick Guide for VAT Returns

You can access the VAT Returns view from the Tax Management work center under Tax Returns. This view displays the advance returns for VAT and annual VAT returns that were created previously in the system using VAT return runs. You can monitor the status of your VAT returns, use the created VAT returns as a template for the electronic submission to the tax authority, and trigger the payment of the determined VAT payable to your tax authority.
Business Background
The entrepreneur has to submit an annual VAT return and regular advance returns for VAT to the tax authority and execute VAT prepayments. The system helps you to comply with the taxation procedure in accordance with 18, paragraph 3 of German VAT law, according to which the entrepreneur has to calculate the tax payable or surplus and report it to the tax authority. The tax returns created in the system include all tax items from VAT-related business transactions and manual VAT entries that are to be reported for the respective reporting period. Once you have submitted that tax return data to your tax authority and have changed the status of the return to Reported in the system, you can trigger a tax payment to clear the determined tax payable in this view. If you determine an error in a tax return, you have the following options:

You can delete a VAT return with the status In Preparation at any time. A VAT return with the status Reported can only be canceled. Alternatively, you can create an amending tax return for the same reporting period in a correction run. All VAT items of the same reporting period are entered again in this run. For more information about how tax items can be subsequently taken into account, see Subsequent Reporting of Tax Items [321]. A VAT return with the status Completed for which an externally-initiated tax payment was already triggered can only be canceled if you have removed the payment allocation in the Payment Management work center (see also
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Quick Guide for Tax Payments [382]). A VAT return for which payment clearing was already performed cannot be canceled. See also:

Quick Guide for VAT / Sales Tax Entries [365] Quick Guide for VAT Return Runs [391] Tax Due Date of Tax Items [319] Status of Tax Returns [317] Electronic Submission of Tax Return Quick Guide for Tax Payments [382] (in particular the Business Background section) Example Scenario for Tax Returns [316]
Important tasks Check Predefined Settings
Check the fine-tuning settings in Business Configuration in the tasks Tax Returns for Goods and Services and Tax on Goods and Services. Make sure that master data is defined for your tax authority (see also Quick Guide for Tax Authorities [363]).
Check Tax Data

To display the open or reported sales tax items for a selected period and the sources documents, you can use the reports Open VAT / Sales Tax Items, Reported VAT / Sales Tax Items and All VAT / Sales Tax Items. To check the details of a tax return, proceed as follows: 1. Select the value by which you want to filter from the filter display. 2. Select the row of the VAT return. The system displays the tax information for the sales list in the lower screen area. 3. To display the form created in the system, click Preview .
4. To obtain an overview of the individual sales revenues with their source documents and tax events, choose View , and then switch to the Tax Return tab and click Details in a field in the tax form.
Submit Tax Data and Release Tax Return

Note: The function for submitting tax data to the tax authority directly from the system is not provided. For more information on the procedure for sending your VAT returns, see Electronic Submission of Tax Return. Once you have sent the tax data to the tax authority, you must release the tax return in the system. The release results in the following:

The status of the tax return is changed from In Preparation to Reported. The tax items of the tax return obtain the status Reported in the tax register and are now displayed in the Reported VAT / Sales Tax Items report.
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The balance of the relevant tax accounts is transferred to the tax payable account (tax clearing account).
Trigger Tax Payment for a Tax Return (Internally Initiated)

1. Select a reported VAT return and choose Pay .
2. If necessary, change the payment date and posting date proposed by the system and choose OK . The payment is assigned an internal number and the status In Preparation. The released payment is automatically entered and posted as a clearing item in the tax register. The journal entry ID of the generated journal entry is now displayed in the payment. Note: If the payment has inconsistent data or payment or bank information is missing in the master data of the tax authority, a task Review Tax Payment is created in your worklist. 3. You find the payment with the status Ready for Transfer in the Payment Management work center under Payment Monitor . Once the payment is made, the tax return is given the status Completed.
7.4.4 Quick Guide for EC Sales Lists
You can access the EC Sales Lists view from the Tax Management work center under Lists .
Tax Returns
EC Sales
This view displays the EC sales lists that were generated in the system using EC sale list runs. You can monitor the status of your EC sales lists in the system and use them as a template for the electronic submission to the German Federal Office for Taxes.
Business Background
The EC sales lists show for the selected reporting period all domestic goods deliveries within the EU tax community, other services, and deliveries for intra-community triangulations. For each acquisition, the system lists the remuneration accrued for the goods and services supplied as well as the corresponding VAT registration number. The EC sales lists are used only for monitoring goods movements within the EU and are not relevant for payment. VAT payments made to the tax authorities are triggered in the system on the basis of advance returns for VAT or annual tax returns. The EC sales lists are submitted either monthly or quarterly in electronic form to the German Federal Office for Taxes (for Germany). The system takes the following activities into account in the EC sales list:

In the Customer Invoices work center, you have entered a goods delivery to a customer in another EU country. In the Customer Invoices work center, you have entered an intra-community service that you have provided. (Note: Note the legal change to Directive 2008/8/EC, which came into effect as of January 1st, 2010, concerning the service location and related VAT reverse charge.) In the Tax Management work center, you have entered a VAT entry manually for an intra-community goods delivery or for an intra-community triangulation. You have delivered goods to your branch office in another EU country for your own, permanent use. (See also: Intra-Community Movement [332]).
If you determine an error in a tax return, you have the following options:
You can delete an EC sales list with the status In Preparation at any time.
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An EC sales list with the status Reported can only be canceled. Alternatively, you can create an amending tax return for the same reporting period in a correction run. All VAT items of the same reporting period are entered again in this run. For more information about how tax items can be subsequently taken into account, see Subsequent Reporting of Tax Items [321].
For more information, see:

Quick Guide for VAT Entries [365] Tax Due Date of Tax Items [319] Quick Guide for EC Sales List Runs [393] Status of Tax Returns [317] Electronic Submission of Tax Return Example Scenario for Tax Returns [316]

To enable EC sales lists to be created correctly in the system, you need to have entered the following settings and master data:
Check the fine-tuning settings in Business Configuration in the tasks Tax Returns for Goods and Services and Tax on Goods and Services. Make sure that master data is defined for your tax authority (see also Quick Guide for Tax Authorities [363]). You need to have entered your tax information and the VAT registration number of the target EU states under also under Tax Return Arrangement. Company Tax Arrangement Tax Numbers , and
You have entered a valid tax exemption (due to a reverse charge, for example) for a product or service. To do this, choose the item you want to edit in the Product Data work center and choose View All > Sales. Select the row of the sales organization, switch to the Tax tab, and enter the tax data and tax exemption reason. In the Business Partner Data work center, you have entered the VAT / sales tax information for a customer. To do this, select a customer for editing and choose Financial Data. Enter the tax-relevant information under Tax Data.
Check the Tax Data

To display the reported or open tax items and the source documents for a selected period, you can use the reports Open VAT / Sales Tax Items, Reported VAT / Sales Tax Items and All VAT / Sales Tax Items. To check the details of an EC sales list, proceed as follows: 1. Select the value by which you want to filter from the filter display. 2. Select the row for the EC sales list. The system displays the tax information for the sales list in the lower screen area. 3. To display the form created in the system, click Preview .
4. To obtain an overview of the individual sales revenues with their source documents and tax events, choose View , and then switch to the Tax Return tab and click Details .
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Note: The tax events used in the EC sales lists for Germany are as follows: , , 400 IntraCommunity Supply (4 Nr. 1b UStG), 403 Triangulation Sale, and 455 EU Sale of Services, Reverse Charge.)
Submit EC Sales List

At present, a function to electronically submit EC sales lists directly from the system is not available. For more information on the procedure for submitting your EC sales list, see Electronic Submission of Tax Return.
7.4.5 Quick Guide for GST Returns Australia
This view displays the periodic GST returns that were created previously in the system using the GST return runs. You can monitor the status of your GST returns, use the created GST returns as a template for the form submission to the tax authority, and trigger the payment of the determined GST payable to your tax authority. You can access the GST Returns subview from the Tax Management work center under the Tax Returns view.
Business background
The entrepreneur has to submit a periodic GST return to the tax authority and execute the payment. The system helps you to comply with the taxation procedure in accordance with the laws of the Australian Taxation Office. The tax returns created in the system include all tax items from GST -related business transactions and manual GST entries that are to be reported for the respective reporting period. Once you have submitted that tax return data to your tax authority and have changed the status of the return to Reported in the system, you can trigger a tax payment to clear the determined tax payable in this view. If you determine an error in a tax return, you have the following options:

You can delete a GST return with the status In Preparation at any time. A GST return with the status Reported can only be canceled. Alternatively, you can create an amending tax return for the same reporting period in a correction run. All GST items of the same reporting period are entered again in this run. For more information about how tax items can be subsequently taken into account, see Subsequent Reporting of Tax Items. A GST return with the status Completed for which an externally-initiated tax payment was already triggered can only be canceled if you have removed the payment allocation in the Payment Management work center (see also Quick Guide for Tax Payments [382]). A GST return for which payment clearing was already performed cannot be canceled.
Check the fine-tuning settings in Business Configuration in the tasks Tax Returns for Goods and Services and Tax on Goods and Services. Make sure that master data is defined for your tax authority. For more information, see Quick Guide for Tax Authorities [363]
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Create a New Tax Return Run

1. Go to the Tax Management work center, choose the Tax Returns view, and then open New Tax Return Run under Common Tasks. 2. In the New Tax Return Run quick activity, enter the Description field. 3. In the Tax Return Arrangement field, select the relevant arrangement. The system will retrieve the tax return details. 4. Enter the From and To dates. 5. Click Save to set the status of the tax return run to In Preparation. The system will give you a Run ID. 6. Click Activate to set the status to Active. Click Schedule and then click OK to run the declaration immediately. You can also specify a date and time in the Schedule field to run it later. 7. Click Close to return to the Tax Returns view. Any tax items posted after the date selected for the return run are not considered in the tax return run. Therefore, if you want to post in the period that is still open after the tax return run, you need to create a correction return. You can reschedule any return runs that have been already scheduled but not performed yet. To do this, enter a new start time for the tax return run.
Check Tax Data

To display the open or reported sales tax items for a selected period and the sources documents, you can use the reports Open VAT / Sales Tax Items, Reported VAT / Sales Tax Items and All VAT / Sales Tax Items. To check the details of a tax return, proceed as follows: 1. Go to the Tax Returns view and choose the VAT Returns subview. The return is in status In preparation. 2. Select the return and click Edit to view the details of the return. 3. Click Release to mark your tax return as declared in the system. The release results in the following: The status of the tax return is changed from In Preparation to Reported.
The tax items of the tax return obtain the status Reported in the tax register and are now displayed in the Reported VAT/Sales Tax Items report. The balance of the relevant tax accounts is transferred to the tax payable account (tax clearing account). You find the payment with the status Ready for Transfer in the Payment Management work center under Payment Monitor. Once the payment is made, the system updates the status of the tax return to Completed.
4. Click Preview to check the details of the form created in the system.
Submit Tax Data

1. Take a print out of the form template and fill your legal form manually. 2. Submit it to the tax authority.
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7.4.6 Quick Guide for Service Tax Returns - India

You use this view to display and update all the service tax challans/returns that you created using the service tax return runs [396] in the system. You can access the Service Tax Returns subview from the Tax Management work center, Tax Returns view.
Business Background
Companies in India are obliged to levy service tax on their services and to pay the collected service tax to the tax authority. In addition to the monthly tax payment (Challan), the company should also submit a Service Tax return (ST 3) form with details of tax payment. The service tax return is to be submitted every half year, the period being April to September or October to March. For more information see, Service Tax Return India [323] If you determine an error in a tax return, you have the following options:

You can delete a service tax return with the status In Preparation at any time. A service tax return with the status Reported can only be canceled. Alternatively, you can create an amending tax return for the same reporting period in a correction run. All service tax challans of the same reporting period are entered again in this run. For more information about how tax items can be subsequently taken into account, see Subsequent Reporting of Tax Items [321] A service tax return with the status Completed for which an externally-initiated tax payment was already triggered can only be canceled if you have removed the payment allocation in the Payment Management work center (see also Quick Guide for Tax Payments [382]). A service tax return for which payment clearing was already performed cannot be canceled.
If the service tax return (ST-3) for this reporting period is not yet created, the correction challan will be automatically included in the normal service tax run. If the service tax return (ST-3) for this period is already created, then create a correction service tax return for the same period. The correction challan will be automatically included in the correction service tax run.
Check the fine-tuning settings in Business Configuration in the tasks Tax Returns for Goods and Services, Tax Settings for Purchasing and Tax on Goods and Services. Ensure that the master data is defined for your tax authority. For more information, see Company Tax Arrangement-India Ensure that you have entered tax data for the supplier master and the customer master in the Supplier Base and Account Management workcenters respectively. Ensure that you have entered the service tax accounting code in the Product Data workcenter.
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Ensure that you have entered tax data for Sales and Purchasing in the Product Data workcenter.
Check Service Tax Challan/Return Data

1. Select the value by which you want to filter from the filter display. 2. Select the row of the Service Tax Challan/return. The system displays the tax information for the Service Tax list in the lower screen area. 3. Click Preview to display the ST-3 form created in the system. 4. Choose View , and then switch to the Tax Return tab and click Details to obtain an overview of the individual service tax items with their source documents and tax details.
Update Challan Details

The bank provides you with a Challan number that you must update in the system. To do this, follow the steps below: 1. Select the row with the tax return for which you want to enter the challan details and click View to open the Service Tax Payment screen. Click Save to save the challan details. 2. Open the Tax Return tab to see the Challan Details field. You can edit the fields on this screen only after the payment is approved.
3. Enter the Challan Identification Number, Challan Date and the BSR code for each service type for which the payment has been made. 4. Click Save to save the challan details.
Submit Service Tax to the Tax Authority

1. Select the row with the tax run for which you want to generate the ST3 form. Click Release to mark your tax return as declared in the system. 2. Click Preview to see the details of the ST3 form. 3. Take a print out and submit to the tax authority.
7.4.7 Quick Guide for Tax Adjustments India
This view displays the tax adjustments that were created previously in the system using the service tax return runs. You can monitor the status of your tax adjustments and cancel them if necessary. You can access the Tax Adjustments subview from the Tax Management work center under the Tax Returns view.
Business background
The tax adjustment feature is used for the following scenarios primarily:
Import of service: The system activates the input tax once the corresponding output tax of an import invoice is paid to the tax authority. For more information, see Import of Services India [322] Purchase of Capital Goods: The system activates the deferred input excise tax in two parts:
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The first 50% is activated when you create the first service tax challan after the capital goods invoice is posted in the system. The subsequent 50% is activated when you create the first service tax challan in the next financial year. For more information, see Purchase of Capital Goods India [322]Purchase of Capital Goods India [322]
Tasks Verify Tax Adjustments

1. Go to the Tax Returns view and choose the Tax Adjustments subview. 2. Select the adjustment (in status Released) and click the Adjustment ID to open the Tax Adjustments Overview screen. Check the details of the tax adjustment that you have chosen. 3. Click Close to return to the Tax Adjustments subview.
Cancel Tax Adjustments

1. Go to the Tax Returns view and choose the Tax Adjustments subview. 2. Select the adjustment (in status Released) that you would like to cancel. Click Action > Cancel to cancel the tax adjustment. The system changes the status of the tax adjustment to Release Canceled.
7.4.8 Quick Guide for A-29 Reports Mexico

In this view you can monitor your A-29 reports that were created previously in the A29 Report Runs [398] view. Companies in Mexico who are liable to pay taxes need to submit the A-29 report every year. This report gives a consolidated view of all the taxes paid by the company through the year. There is no payment associated with the report. You can access the A29 Reports subview from the Tax Management work center in the Tax Returns view.
Check the fine-tuning settings in Business Configuration in the tasks Tax Returns for Goods and Services and Tax on Goods and Services. Make sure that master data is defined for your tax authority. For more information, see Quick Guide for Tax Authorities [363].
Create Tax Return Runs

1. Go to the Tax Management work center, and then open New Tax Return Run under Common Tasks. 2. In the New Tax Return Run quick activity, enter the Run Description field. 3. In the Tax Return Arrangement field, select the relevant arrangement. The system will retrieve the tax return details.
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4. Enter the From and To dates. 5. Click Save to set the status of the tax return run to In Preparation. The system will give you a Run ID. 6. Click Set to Active to set the status to Active. Click Schedule to open the Schedule Job screen. Select Start Immediately to run the declaration immediately. You can also specify other job schedules to run later, in recurrence or a single run. 7. Click Save and Close to return to the Tax Returns view. Any tax items posted after the date selected for the return run are not considered in the tax return run. Therefore, if you want to post in the period that is still open after the tax return run, you need to create a correction return. You can reschedule any return runs that have been already scheduled but not performed yet. To do this, enter a new start time for the tax return run.
Check Tax Data and Release Tax Return

1. Go to the Tax Returns view and choose the A-29 Reports subview. 2. Select a report (in status In Preparation) and click View to open the report. 3. Click Tax Return and then select a row to view the corresponding tax details of a combination of supplier and transaction type. 4. Under Transaction Summary, click the link to the individual amount to view the details corresponding to that field. 5. Select a row and click Details to see the consolidated summary of both the VAT and Withholding Tax documents. 6. Click Export > To Microsoft Excel to download all the details that you can see on the screen. 7. Click Release to mark your tax return as reported in the system. The release results in the following: The status of the tax return is changed from In Preparation to Reported.
The tax items of the tax return obtain the status Reported in the tax register and are now displayed in the Reported VAT/Sales Tax Items report. The system creates a file with all the details.
Upload File to the Website

The function for submitting tax data to the tax authority directly from the system is not provided. 1. Select the return and click View to view all the details of the run. 2. Go to the Attachments tab to view the link to the electronic file that is created in the system. Click the file to download it to your system or open it directly. You can also upload the file to the Mexican Tax Authority Web Site http://www.sat.gob.mx to comply with legal requirements defined by the Servicio de Administracin Tributaria (SAT), the Mexican tax authority.
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Update Acknowledgement Details

Once you have submitted the tax data, the Mexican Tax Authority provides you with a Folio Receipt Number and a Transaction Number that you must update in the system. To do this, follow the steps below: 1. Select the report for which you want to upload the details and click View 2. In the Overview tab, under Acknowledgement Information, update the corresponding numbers that you have received from the tax authority. 3. Click Save to save the information in the SAP Business ByDesign system. If you create a correction return and file it to the government, you need to refer to the original tax return. Along with the submission date, you have to mention the Folio Receipt Number and Transaction Number of the original return in the correction return.
7.5 Tax Payments View

7.5.1 Quick Guide for Tax Payments About this document
You can access the Tax Payments view from the Tax Management work center under Tax Payments. This view displays all incoming and outgoing tax payments that were triggered in the Tax Management work center (internally initiated) or in the Payment Management and Liquidity Management work centers (externally initiated).
Business Background Tax Payments in the System

Tax payments are differentiated by the system due to the type and place of origin of VAT-relevant payments as follows:
Tax payments are triggered within (internally initiated) or outside of (externally initiated) the Tax Management work center. Tax payments can be triggered as manual, flat-rate payments (for example, VAT prepayments) or due to tax returns. Tax payments can match the determined tax amounts of tax return(s) or differ from them (tax payment difference).
The distinction whether the payments are triggered within the Tax Management work center (internally initiated) or outside of it (externally initiated) determines the release and approval process and business task management for tax payments, status assignment of tax payments and tax returns, and the process for entering and canceling tax payments. Examples:
Internally initiated: You enter a VAT prepayment or a tax payment for a tax return in the Tax Management work center. Externally initiated: You enter a bank transfer or check payment (US) to the tax authority in the Payment Management work center.
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Externally initiated: You enter a direct debit or tax refund of the tax authority with a bank statement in the Liquidity Management work center. Note on tax refund (Germany): Note that a tax receivable is only considered legal upon approval by the tax authority; that is when there is an incoming payment or corresponding notification. If there is no such approval by the tax authority by the closing key date, you need to make an accrual when you perform year-end closing.
NOTE: Tax payables or tax receivables are not cleared in the Payables and Receivables work centers.
Internally Initiated Tax Payments

For internally initiated tax payments the bank account to be used is determined automatically by the system and cannot be entered manually. The bank account selection can be configured in the optional activity Bank Account and Payment Method Determination and Prioritization for Payment Methods. If you want to use a specific bank account, we recommend that you create an externally initiated payment in the Payment Management work center as described under 'Tasks' below. If you select the tax authority as payee, the tax payment is automatically allocated (payment allocation) and recorded in the Tax Management work center. Afterwards you have to assign the reported tax return to your tax payment so that the tax payable of the tax return can be cleared.
Externally Initiated Tax Payments

Payment Allocation In the Payment Management work center, the system first attempts to automatically assign payments either to the appropriate business transactions (original payments), business partners, other expenses (fees, interest) or to the appropriate general ledger or expense accounts. The type of payment allocation is determined by the underlying business transaction and the source document of a payment. Payment allocation needs to be performed manually if there is missing information or data inconsistencies (see also Payment Allocation and Clearing [188] and Perform a Manual Payment Allocation [202]). For some payments that are initiated in Payment Management, for example, bank transfer or outgoing check, the system attempts to find an suitable payment order and to assign the original payment (source document). Once payment allocation has taken place and been released, the status of the payment order is set to Confirmed. For entering the clearing of a tax payable with a bank statement in the Liquidity Management work center, the system does not look for a suitable payment order, instead it attempts to directly and automatically assign the payment to the business partner. If a tax authority was specified in the bank statement, the payment is automatically assigned to the Tax Management work center. A tax payment is then created with the status In Preparation in the Tax Management work center. If the bank statement is released and the system could uniquely assign a tax return to the tax payment, the tax payment gets the status Released. Tax Payment Differences For externally initiated tax payments, the system automatically determines suitable, reported tax returns. Once the system has either determined none or multiple tax returns, or the tax payable determined in the tax return differs from the tax payment, a task Review and Release Tax Payment is created in your worklist. You can specify that a tax payment difference up to a certain amount is posted immediately as an expense. In this case, no task is created in the worklist. For this, in the master data for the tax authority, you define a Tolerance for Tax Payment Difference in the Company Tax Arrangement under Tax Return Arrangements. If a determined tax payment difference falls below this value, the tax payment difference is immediately released with the approval and entered automatically as an expense. Tax payment differences can occur, for example, for the following reasons:
You have entered a bank statement with a credit memo or direct debit from your tax authority in the Payment Management work center that is not VAT/sales tax-relevant (for example, corporate income tax or income tax).
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Since in the payment the tax authority is entered as the business partner, the system has mistakenly assigned the payment to the Tax Management work center using the automatic payment allocation.
The system has assigned a tax return to an externally initiated tax payment. Since the tax payment differs from the determined tax amount of the tax return, there is a tax payment difference. The system has assigned more than one tax return to an externally initiated tax payment. This also results in a tax payment difference.
Useful Tax Reports

Before you trigger a tax payment to your tax authority, check in the Open VAT / Sales Tax Items report whether tax items are still to be considered for the selected reporting period. If necessary, perform a new tax return run (or correction run). After you have changed the status of the tax item to Reported with Release, it is displayed in the Reported VAT / Sales Tax Items. This report displays the tax receivable or the surplus amount for the selected reporting period that is to be refunded by the tax authority (tax refund). Note: We recommend that you always enter a reporting period beginning with the current calendar year for your tax return runs so that the system can reliably determine all open tax items in your tax returns.
Canceling Tax Payments and Reversing Payment Allocations

The procedure how a tax payment is canceled and whether before this happens, a payment allocation is reversed, depends on the status and origin (externally/internally initiated) of the payment and whether the tax payment was triggered due to a tax return. You need to reverse or cancel payment allocations or tax payments for the following reasons:

An incorrect amount was entered for the tax payment. A tax payment was mistakenly triggered as a tax prepayment and not due to a monthly tax return (or the other way round). The incorrect tax return was assigned to a tax payment. A payment was triggered to a tax authority by mistake and thus mistakenly classified as a tax payment.
You cancel externally initiated tax payments in the Payment Management work center. Then the appropriate payment also gets the status Canceled in the Tax Management work center. You need to have first reversed an existing payment allocation [200]. For externally initiated payments for which payment clearing was already performed, you can only change or reverse an existing payment allocation, or assign it to another bank statement using a new payment allocation. (Note: Payments that were entered using bank statements are considered as performed and cannot be canceled.) If a released payment allocation is reversed subsequently, the system automatically generates a new payment allocation with the status In Preparation and a task in the worklist for payment allocation You cancel internally initiated tax payments in the Tax Management work center. The referenced payment in Payment Management work center then gets the status Canceled. Only tax payments with the status Released can be canceled. You need to reverse tax payments with the status In Preparation. If you want to cancel or reverse a tax payment initiated due to a tax return, an existing assignment to the tax return is automatically removed in the Tax Management work center. The status of the relevant tax return is then changed from Completed to Reported.

To enable tax payments to be determined, triggered and entered in the system, you need to have defined the following settings and master data:
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You have defined the account determination settings in Business Configuration (see also Automatic Account Determination). You have defined the master data for your banks and bank accounts in the Liquidity Management work center. Valid for US: For check payments, you need to have defined the data relevant for checks here. You have defined the master data of the tax authority (authorities), bank details, and standard payment methods (for example, bank transfer or check payment). For more information, see : Quick Guide for Tax Authorities (Tax Management [363]. You need to have marked a tax return type that is relevant for tax payments. To do this, go to the Tax Authorities view under Arrangement payment. Company Tax Arrangement Tax Return and set the Payment Required indicator for a tax return type relevant for
Enter a Tax Prepayment (Internally Initiated)

1. Under Common Tasks, choose New Tax Payment. (Alternatively, under Tax Payments, select New Tax Prepayment).
2. Enter the Tax Return Arrangement and the required data under the Prepayments tab. 3. Choose Release. The system generates an internal payment ID and posts the payment. The journal entry ID of the created journal entry is displayed now . 4. Now, you find the payment with the status Ready for Transfer in the Payment Management work center under Payment Monitor. If the payment has inconsistent data or payment or bank information is missing in the master data of the tax authority, a task Review Tax Payment is created in your worklist. As long as your tax prepayment has not been released yet, under the Tax Payments tab you can assign tax returns to this payment. This payment conversion is only possible for the complete amount. Additional Notes:
In Germany, special prepayments are usually cleared with the last advance return for VAT of the year (usually in December). For this, you enter a date in the December of the calendar year as the Clearing Due Date. Special Prepayment Amount (1/11Payment): To manually calculate the special prepayment amount, determine the total of the tax prepayments and the special prepayment of the last year, then divide the total by 11. If, contrary to expectations, the company cannot be continued until the end of year but, for example, only until August and a special prepayment was executed at the start of the year, the last advance return for VAT takes place in August. To ensure that the special prepayment is included in this advance return, the time frame selected for the last advance return run must be August 1 to December 31 (not August 1 to August 31).
Enter a Tax Payment to Clear a Tax Return Directly (Internally Initiated)

1. Select a tax return with the status Reported to which no tax payment ID has been assigned. Choose Pay .
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2. If necessary, change the payment date and posting date proposed by the system and choose OK . The payment is assigned an internal number and the status In Preparation. (Tip: To see the newly assigned Tax Payment ID, you have to reload the current view. Now you can directly navigate to the tax payment view by using the displayed link.) A task Approve Tax Payment is sent to your manager. If the payment has inconsistent data or payment or bank information is missing in the master data of the tax authority, a task Review Tax Payment is created in your worklist. 3. Once the payment is approved, it receives the status Released. The payment is automatically entered as a clearing item in the tax register and posted to the appropriate tax items. A journal entry is generated and the journal entry ID is assigned to the payment. The tax return has the status Completed. You find the payment with the status Ready for Transfer in the Payment Management work center under Payment Monitor.
Enter a Bank Transfer to Tax Authority (Externally Initiated)

1. Go to the Payment Management work center and choose Outgoing Bank Transfer . 2. Enter the payment and bank data and the payee of your tax authority. Choose Release 3. The payment is assigned an internal number. You find the payment under Payment Monitor with the status Ready for Transfer. 4. Under Payment Allocations you find a payment allocation with the status Released using which the related payment order was automatically confirmed. The payment is automatically assigned to the Tax Management work center using the specified tax authority. 5. A task Review and Release Tax Payment is sent to the worklist of the Tax Management work center for this payment. Proceed as described under Task - Review and Release Tax Payment. Note: This procedure is the same as for entering an outgoing check. Note here that the system derives the tax due date from the date of issue of the check. The tax due date determines the reporting period for this tax item. If the date on which the check leaves the control of the company differs from the date of issue, you have to manually make a tax correcting entry in the Tax Management work center under Manual Tax Entries. . Common Tasks New
Enter a Tax Payment with Manually Created Bank Statement (Externally Initiated)
1. Go to the Liquidity Management work center and choose under Bank Statement . 2. Enter the Closing Balance of your bank statement and save your entries. 3. Choose Next to go to the Create and Edit Items phase and choose Add Row . Select the payment method Outgoing Direct Debit (tax payable) or Incoming Direct Debit (tax refund), enter the tax authority and the debit or credit amount. Enter all other items of the bank statement and save your entries. 4. Go to the Review phase and choose Release . Common Tasks New
5. You can now find the payment in the Payment Management work center under Payment Monitor with the status Confirmed. (Note: Payments that were entered with a bank statement and where the data is consistent, immediately get the status Confirmed upon release.)
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If the payment could not be confirmed, check in the Payment Management work center under Payment Allocation whether the payment could be correctly assigned to your tax authority and the appropriate payment allocation has the status Released. Otherwise you find a task to manually process the payment allocation in your worklist. 6. Finally, switch to the Tax Management work center and select the task Review and Release Tax Payment in your worklist. Proceed as described under Task - Review and Release Tax Payment.
Enter a Tax Payment with Uploading a Bank Statement (Externally Initiated)

Your bank has sent you a file with bank statement data which also shows a direct debit or a tax repayment from the tax authority. To transfer the payments of the bank statement into the system, proceed as follows: 1. Once you have saved the text file for the bank statement locally, go to the Liquidity Management work center and choose under Files New Inbound File . File Management Inbound
2. Under File Type, select the valueBank Statement and enter your bank. 3. Choose Add and select the file that you have saved locally.
4. Choose Start File Upload. You receive the message that a new bank statement was created in the system. You find it under Bank Statements in the status In Preparation. A task to release the bank statement was created in the worklist. 5. Once you have released the bank statement, you find the payments of the bank statement in the Payment Management work center under Payment Monitor in the status Confirmed. If an item of the bank statement could not be assigned, an appropriate task to edit the payment allocation is created in the worklist. 6. Finally, switch to the Tax Management work center and select the task Review and Release Tax Payment in your worklist. Proceed as described under Task - Review and Release Tax Payment.
Processing a Direct Debit Over Multiple Tax Payments (Externally Initiated)

If a bank statement has two (or more) tax payments in only one direct debit, the payment allocation cannot identify the tax payments individually. In this case, you create a bank transfer to the tax authority for each tax payment so that the tax payments can be individually identified using the payment allocation, and correctly assigned and entered in the Tax Management work center. For example, if a direct debit contains two tax payments, proceed as follows: 1. Create two bank transfers in the Payment Management work center under Tasks New Outgoing Bank Transfer . Common
2. After your manager has approved the task, you find the payments in the payment monitor with the status Ready for Transfer. 3. For each bank transfer, choose Actions for Bank Transactions of the bank transfers is set to In Transfer. Set to In Transfer. The status
4. Select the appropriate payment allocation for editing under Payment Allocations. Under Payment Allocation, set the filter Bank Transfers, copy the previously entered bank transfers,
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save your entries, and release the payment allocation. The payments receive the status Confirmed. 5. The payment allocation identifies both bank transfers as tax payments with the tax authority as payer. A task Review and Release Tax Payment is sent to the Tax Management work center for each bank transfer.
7.6 Periodic Tasks

7.6.1 Quick Guide for Sales and Use Tax Return Runs (US)
You can access the Sales and Use Tax Return Runs view from the Tax Management work center under Tasks Sales and Use Tax Return Runs .
Periodic
In this view, you perform VAT return runs to automatically create your sales and use tax returns (as required in the US).
Business Background
In the tax return run, the open tax items from the selected reporting period are derived automatically from the tax register [315], then summarized and assigned with the tax events to the relevant fields in the tax return. As a result of the run, a sales and use tax return is created in the system. For more information, see Quick Guide for Sales and Use Tax Returns (US) [368].
Check the fine-tuning settings in Business Configuration in the tasks Tax Returns for Goods and Services and Tax on Goods and Services. Make sure that master data is defined for the Tax Authorities (see also Quick Guide for Tax Authorities [363]). You need to have entered your tax information for sales and use tax under Company Tax Arrangement Arrangement. Tax Numbers , and also under Tax Return
In the Product Data work center for the appropriate product under Purchases Tax , you have entered the tax jurisdictions and tax exemption reasons for sales and use tax. You have entered a valid tax exemption for a product and the respective seller. To do this, choose the item you want to edit in the Product Data work center and choose View All > Sales. Select the row of the seller, switch to the Tax tab, and enter the tax data. In the Business Partner Data work center, you have entered the tax-relevant data for a supplier. To do this, select a supplier for editing and choose Financial Data. Go to the Tax Data tab page. Enter the tax number applicable in the state of the supplier as well as an existing tax exemption, for example, if the supplier has no business presence (or nexus) in your state. (Note: For the supplier, you need to specify the use tax in the invoicing document using explicitly the tax code.)
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In the Business Partner Data work area, you have entered the tax information for use tax applicable to a customer. To do this, select a customer for editing and choose Financial Data. Switch to the Tax Data and Tax Exemption Certificate tabs and enter the tax data and Tax Exemption Reason. To display the unreported or reported VAT items for a selected period and the source documents, you can use the reports Unreported VAT / Sales Tax Items, Reported VAT / Sales Tax Items and All VAT / Sales Tax Items.
Prepare a Tax Return Run

We strongly recommend that you perform the following checks regularly (especially during quarter-end and year-end closing) and during system implementation, system changeover, and after changes to the system settings. 1. Run the VAT / Sales Tax Reconciliation report. This report compares the tax data relevant for the reporting period in the tax register with the tax entries in the general ledger and analyzes whether any technically related differences have occurred. 2. Check whether open tax items exist with a posting date after the reporting period. You avoid any balance differences in the tax accounts with this check. To do this, choose the Open VAT / Sales Tax Items report. 3. Check whether open tax items exist with a tax due date after the reporting period. You avoid any balance amounts in the tax accounts with this check. To do this, also choose the Open VAT / Sales Tax Items report. 4. Determine the tax amount to be cleared for the reporting period. Choose the Open VAT / Sales Tax Items report and enter the time period for the tax due date. 5. Check which tax amounts were manually overridden and posted in the source documents. Choose the VAT / Sales Tax Calculation Details report and enter the reporting period under Proposed Posting Date. The report calculates the tax amounts using the items in the source documents and compares them with the tax amounts that were actually posted. If a tax amount was manually overridden, you can navigate directly in the report to the journal entry of the relevant tax amount and navigate further to the source document. For more information, see Example Scenario for Tax Returns [316].
Create and Perform a Tax Return Run

1. Choose Common Tasks New Tax Return Run . Periodic
You can also reuse the data of an existing VAT return run. To do this, under
Tasks Sales and Use Tax Return Runs , select a run and then choose Copy . The data is copied automatically for the new run and you can adjust it accordingly. Alternatively, you can use an existing tax return as the basis for a new run. To do this, under Tax Returns Sales and Use Tax Returns , select a tax return and choose Actions and Schedule Tax Return Run for Next Period . 2. Enter the Company Tax Arrangement and the period to be taken into account for the run. Note: We recommend that you always choose a period from January 1 to the end of the current reporting period to make sure that all open tax items are taken into account during the run. To create an amended tax return for a tax return that you have previously submitted to the tax authority, set the Correction Run indicator.
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3. To create the tax return run, click Save . The system automatically assigns a number to the run as well as the status In Preparation. 4. To perform the run immediately or schedule it for a later date, it needs to have the status Active. To do this, choose Activate and perform one of the following actions: To start the run immediately (with status Active) and create a tax return, click Save and Close .
To perform the run at a later date, (to distribute the system load, for example), set the Single Run indicator and enter the time entries and choose Save and Close .
If no open tax items were found in the selected period, then no tax return is created. 5. Under Tax Returns Sales and Use Tax Returns , you find a new tax return with the status In Preparation. For more information, see Quick Guide for Sales and Use Tax Returns [368].
7.6.2 Quick Guide for Withholding Tax Return Runs (US)
You can access the Withholding Tax Return Runs view from the Tax Management work center under Tasks Withholding Tax Return Runs .
Periodic
In this view, you perform withholding tax return runs to automatically create your withholding tax returns.
Business Background
In the tax return run, the unreported sales relevant for withholding tax from the selected reporting period are selected automatically from the tax register [315], then summarized and assigned with the tax events to the relevant fields in the tax return. As a result of the run, the system creates a withholding tax return (MISC 1099 - form or file) with the status In Preparation. For more information, see Quick Guide for Withholding Tax Returns (US) [372].

To be able to create withholding tax returns in the system, you need to have entered the following settings and master data:
Check the fine-tuning settings for withholding tax and withholding tax returns in Business Configuration. Under Tax Authorities Company Tax Arrangement , you have set the Withholding Tax indicator and entered tax-relevant data. In the Supplier Base work center, you have entered suppliers with withholding tax information. To do this, select the relevant supplier and choose Edit Financial Data Tax Data . In the Withholding Tax Classification section, define the withholding tax rate type. If for the US, for example, you do not withhold amounts but report payments in the 1099-MISC, you select No backup withholding. Else, if you have to withhold a certain percentage, you select Liable to withholding.
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You have defined an income type for withholding tax in the Product Data work center. Select the relevant item for processing under Materials or Services, choose View All, and then switch to Purchasing Withholding Tax .
To display the withholding tax base amounts and related invoices for a selected period, you can use the Withholding Tax Items report.

1. Choose Common Tasks New Tax Return Run . Periodic Tasks
You can also reuse the data of an existing run. To do this, under
Withholding Tax Return Runs , select a run and then choose Copy . The data is copied automatically for the new run and you can adjust it accordingly. Alternatively, you can use an existing withholding tax return as the basis for a new run. To Tax Returns Withholding Tax Returns , select a tax return and choose do this, under Actions and Schedule Tax Return Run for Next Period . 2. Enter the Company Tax Arrangement and the period to be taken into account for the run. Note: We recommend that you always choose a period from January 1 to the end of the current reporting period to make sure that all open tax items are taken into account during the run. To create an amended tax return for a withholding tax return that you have previously submitted to the tax authority, set the Correction Run indicator. 3. To create the tax return run, click Save . The system automatically assigns a number to the run as well as the status In Preparation. 4. To perform the run immediately or schedule it for a later date, it needs to have the status Active. To do this, choose Activate and perform one of the following actions: To start the run immediately (with status Active) and create a withholding tax return, click Save and Close .
If no open tax items were found in the selected period, then no tax return is created. 5. Under Tax Returns Withholding Tax Returns , you find a withholding tax return with the status In Preparation. For more information, see Quick Guide for Withholding Tax Returns (US) [372].
7.6.3 Quick Guide for VAT Return Runs
You can access the VAT Return Runs view from the Tax Management work center under Return Runs .
Periodic Tasks
VAT
In this view, you perform tax return runs or correction runs to automatically create your advance returns for VAT and annual tax returns.
Business Background
During the run, the system determines the tax items relevant for the selected reporting period from business transactions and manual tax entries. The Tax Due Date of Tax Items [319] is used for this.
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In the tax return run, the open tax items from the selected reporting period are derived automatically from the tax register [315], then summarized and assigned with the tax events to the relevant fields in the tax return. An advance return for VAT annual VAT return is created in the system as a result of the run. For more information, see Quick Guide for VAT Returns [372].
Check the fine-tuning settings in Business Configuration in the tasks Tax Returns for Goods and Services and Tax on Goods and Services. Make sure that master data is defined for your tax authority (see also Quick Guide for Tax Authorities [363]). To display the open or reported sales tax items for a selected period and the sources documents, you can use the reports Open VAT / Sales Tax Items, Reported VAT / Sales Tax Items and All VAT / Sales Tax Items.

We strongly recommend that you perform the following checks regularly (especially during quarter-end and year-end closing) and during system implementation, system changeover, and after changes to the system settings. End of the note 1. Run the VAT / Sales Tax Reconciliation report. This report compares the tax data relevant for the reporting period in the tax register with the tax entries in the general ledger and analyzes whether any technically related differences have occurred. 2. Check whether open tax items exist with a posting date after the reporting period. You avoid any balance differences in the tax accounts with this check. To do this, choose the Open VAT / Sales Tax Items report. 3. Check whether open tax items exist with a tax due date after the reporting period. You avoid any balance amounts in the tax accounts with this check. To do this, also choose the Open VAT / Sales Tax Items report. 4. Determine the tax amount to be cleared for the reporting period. Choose the Open VAT / Sales Tax Items report and enter the time period for the tax due date. 5. Check which tax amounts were manually overridden and posted in the source documents. Choose the VAT / Sales Tax Calculation Details report and enter the reporting period under Proposed Posting Date. The report calculates the tax amounts using the items in the source documents and compares them with the tax amounts that were actually posted. If a tax amount was manually overridden, you can navigate directly in the report to the journal entry of the relevant tax amount and navigate further to the source document. For more information, see Example Scenario for Tax Returns [316].

1. Choose Common Tasks New Tax Return Run .
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You can also reuse the data of an existing VAT return run. To do this, under
Periodic
Tasks VAT Return Runs , select a run and then choose Copy . The data is copied automatically for the new run and you can adjust it accordingly. Alternatively, you can use an existing tax return as the basis for a new run. To do this, under Tax Returns
Schedule Tax Return Run for Next Period
VAT Returns , select a tax return and choose Actions .
and
2. Enter the Company Tax Arrangement and the period to be taken into account for the run. Note: We recommend that you always choose a period from January 1 to the end of the current reporting period to make sure that all open tax items are taken into account during the run. To create an amended tax return for a tax return that you have previously submitted to the tax authority, set the Correction Run indicator. 3. To create the tax return run, click Save . The system automatically assigns a number to the run as well as the status In Preparation. 4. To perform the run immediately or schedule it for a later date, it needs to have the status Active. To do this, choose Activate and perform one of the following actions: To start the run immediately (with status Active) and create a tax return, click Save and Close .
If no open tax items were found in the selected period, then no tax return is created. 5. Under Tax Returns VAT Returns , you find you VAT return with the status In Preparation. For more information, see Quick Guide for VAT Returns [372].
7.6.4 Quick Guide for EC Sales List Runs
You can access the EC Sales List Runs view from the Tax Management work center under Sales List Runs . In this view, you perform tax return runs to automatically create your EC sales lists.
Periodic Tasks
EC
Business Background
In the tax return run, the open tax items from the selected reporting period are derived automatically from the tax register [315], then summarized and assigned with the tax events to the relevant fields in the EC sales list. As a result of the run, the system creates an EC sales list with the status In Preparation. For more information, see Quick Guide for EC Sales Lists [374].

To enable EC sales lists to be created correctly in the system, you need to have entered the following settings and master data:
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Check the fine-tuning settings in Business Configuration in the tasks Tax Returns for Goods and Services and Tax on Goods and Services. Make sure that master data is defined for your tax authority (see also Quick Guide for Tax Authorities [363]). You need to have entered your tax information and the VAT registration number of the target EU states under also under Tax Return Arrangement. Company Tax Arrangement Tax Numbers , and
You have entered a valid tax exemption (due to a reverse charge, for example) for a product or service. To do this, choose the item you want to edit in the Product Data work center and choose View All > Sales. Select the row of the distribution chain, switch to the Tax tab, and enter the tax data and tax exemption reason. In the Business Partner Data work center, you have entered the VAT / sales tax information for a customer. To do this, select a customer for editing and choose Financial Data. Enter the tax-relevant information under Tax Data. To display the reported or open tax items and the source documents for a selected period, you can use the reports Open VAT / Sales Tax Items, Reported VAT / Sales Tax Items and All VAT / Sales Tax Items.

1. Choose Common Tasks New Tax Return Run . Periodic Tasks EC
You can also reuse the data of an existing run. To do this, under
Sales List Runs , select a run and then choose Copy . The data is copied automatically for the new run and you can adjust it accordingly. Alternatively, you can use an existing EC sales list return as the basis for a new run. To do this, under
Actions
Tax Returns EC Sales List Returns , select a tax return and choose and Schedule Tax Return Run for Next Period .
2. Enter the Company Tax Arrangement and the period to be taken into account for the run. Note: We recommend that you always choose a period from January 1 to the end of the current reporting period to make sure that all open tax items are taken into account during the run. To create an EC sales list return that you have previously submitted to the tax authority, set the Correction Run indicator. 3. To create the tax return run, click Save . The system automatically assigns a number to the run as well as the status In Preparation. 4. To perform the run immediately or schedule it for a later date, it needs to have the status Active. To do this, choose Activate and perform one of the following actions: To start the run immediately (with status Active) and create an EC sales list return, click Save and Close .
If no open tax items were found in the selected period, then no tax return is created. 5. Under Tax Returns EC Sales List Returns , you find a new EC sales list return with the status In Preparation. For more information, see Quick Guide for EC Sales Lists [374].
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7.6.5 Quick Guide for GST Return runs Australia

In this view, you perform tax return runs or correction runs to automatically create your periodic GST return. You can access the GST Return Runs subview from the Tax Management work center in the Periodic Tasks view.
Business background
During the run, the system determines the tax items relevant for the selected reporting period from business transactions and manual tax entries. The Tax Due Date of Tax Items [319] is used for this. In the tax return run, the open tax items from the selected reporting period are derived automatically from the tax register [315] , then summarized and assigned with the tax events to the relevant fields in the tax return. A periodic return for GST is created in the system as a result of the run. For more information, see Quick Guide for GST Returns Australia [376] See Also:
Mass Data Runs (MDR)
Check the fine-tuning settings in Business Configuration in the tasks Tax Returns for Goods and Services and Tax on Goods and Services. Make sure that master data is defined for your tax authority (see also Quick Guide for Tax Authorities [363]).
Check Tax Data

We strongly recommend that you perform the following checks regularly (especially during quarter-end and year-end closing) and during system implementation, system changeover, and after changes to the system settings. 1. Run the VAT/Sales Tax Reconciliation report. This report compares the tax data relevant for the reporting period in the tax register with the tax entries in the general ledger and analyzes whether any technically related differences have occurred. . 2. Check whether open tax items exist with a posting date after the reporting period. You avoid any balance differences in the tax accounts with this check. To do this, choose the Open VAT / Sales Tax Items report. 3. Check whether open tax items exist with a tax due date after the reporting period. You avoid any balance amounts in the tax accounts with this check. To do this, also choose the Open VAT / Sales Tax Items report. 4. Determine the tax amount to be cleared for the reporting period. Choose the Open VAT / Sales Tax Items report and enter the time period for the tax due date.
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5. Check which tax amounts were manually overridden and posted in the source documents. Choose the VAT / Sales Tax Calculation Details report and enter the reporting period under Proposed Posting Date. The report calculates the tax amounts using the items in the source documents and compares them with the tax amounts that were actually posted. If a tax amount was manually overridden, you can navigate directly in the report to the journal entry of the relevant tax amount and navigate further to the source document For more information, see Example Scenario for Tax Returns. [316]

1. Choose Common Tasks New Tax Return Run. You can also reuse the data of an existing GST return run. To do this, under Periodic Tasks GST Return Runs, select a run and then choose Copy . The data is copied automatically for the new run and you can adjust it accordingly. Alternatively, you can use an existing tax return as the basis for a new run. To do this, under Tax Returns GST Returns, select a tax return and choose Actions and Schedule Tax Return Run for Next Period . 2. Enter the Company Tax Arrangement and the period to be taken into account for the run. We recommend that you always choose a period from January 1 to the end of the current reporting period to make sure that all open tax items are taken into account during the run. To create an amended tax return for a tax return that you have previously submitted to the tax authority, set the Correction Run indicator. 3. Choose Save to create the tax return run. The system automatically assigns a number to the run as well as the status In Preparation. 4. Choose Activate and perform one of the following actions : To start the run immediately (with status Active) and create a tax return, choose Save and Close .
To perform the run later, (to distribute the system load, for example), set the Single Run indicator and enter the time entries and then choose Save and Close . If no open tax items are found in the selected period, then no tax return is created.
Under Tax Returns GST Returns, you find your GST return with the status In Preparation. For more information, see Quick Guide for GST Returns Australia [376]
7.6.6 Quick Guide for Service Tax Return Runs India

In this view, you perform Service Tax return runs to create your advance returns automatically for Service Tax and annual tax returns. You can access the Service Tax Return Runs subview from the Tax Management work center, Periodic Tasks view.
Business background
During the run, the system determines the tax items relevant for the selected reporting period from business transactions and manual tax entries. The Tax Due Date of Tax Items [319] is used for this.
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In the tax return run, the open tax items from the selected reporting period are derived automatically from the tax register [315] , then summarized and assigned with the tax events to the relevant fields in the tax return. A periodic return for GST is created in the system as a result of the run. For more information, see Quick Guide for Service Tax Returns India [378] See Also:
Mass Data Runs (MDR)
Tasks Predefine Settings
Ensure that you can view the settings for your tax returns in the Business Configuration under Implementation Projects in the activity Tax Returns for Goods and Services. Ensure that you can view the settings for the tax calculation in the Business Configuration under Implementation Projects in the activity Tax on Goods and Services. Make sure that the company data relevant for tax is defined in the Company Tax Arrangement. Ensure that the following data is maintained: Tax Return Arrangements: This data forms part of the master data of the selected tax authority and includes the standard settings for submitting your tax returns to the tax authority as well as tax payments resulting from tax returns.
From: / To: With these entries, you specify the period that the system should use for selecting open tax items.

1. Click New and then Tax Return Run. You can also select a row that applies to an existing run and click Copy . The data is copied automatically for the new run and you can adjust it accordingly. 2. Enter the Company Tax Arrangement and the period to be taken into account for the run. 3. To create the tax return run, click Save . The system automatically assigns a number to the run as well as the status In Preparation. 4. To perform the run immediately or schedule it for a later date, it needs to have the status Active. To do this, click Activate . You can now perform the following actions: To start the run immediately (with status Active) and create a tax return, click Schedule and OK. If no open tax items are found in the selected period, then no tax return is created.
To perform the run later, (to distribute the system load, for example), click Schedule and enter the Date and Time. To check the validity of the data in your tax return, you can:
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Check the tax return created with the status In Preparation. You can delete the tax return with this status if required. Set the Test Run indicator. Note that a tax return created in a test run cannot be processed further.
To create an amended tax return for tax data that you previously submitted to the tax authority, set the Correction Run indicator.
5. To be able to display the new tax return with the status In Preparation, you can: Select the row for the affected run in the Service Tax Return Runs view. In the details that appear below, go to the Execution Details tab and choose the link displayed under the Tax Return Number.
Go to the Service Tax Returns view, filter to Tax Returns in Preparation and select your tax return.
7.6.7 Quick Guide for A-29 Report Runs Mexico
In this view, you perform the A-29 Report runs to automatically create your A-29 Report as is the legal requirement in Mexico. You can access the A-29 Report Runs subview from the Tax Management work center under the Periodic Tasks view.
Business Background

Tax Due Date of Tax Items [319] Quick Guide for A-29 Reports Mexico [380] Mass Data Runs (MDR)
Check the fine-tuning settings in Business Configuration in the tasks Tax Returns for Goods and Services and Tax on Goods and Services. Make sure that master data is defined for your tax authority (see also Quick Guide for Tax Authorities [363] ).

We strongly recommend that you perform the following checks regularly (especially during quarter-end and year-end closing) and during system implementation, system changeover, and after changes to the system settings. 1. Run the VAT/Sales Tax Reconciliation report. This report compares the tax data relevant for the reporting period in the tax register with the tax entries in the general ledger and analyzes whether any technically related differences have occurred. .
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2. Determine the tax amount to be cleared for the reporting period. Choose the Open VAT / Sales Tax Items report and enter the time period for the tax due date. 3. Check which tax amounts were manually overridden and posted in the source documents. Choose the VAT / Sales Tax Calculation Details report and enter the reporting period under Proposed Posting Date. The report calculates the tax amounts using the items in the source documents and compares them with the tax amounts that were actually posted. If a tax amount was manually overridden, you can navigate directly in the report to the journal entry of the relevant tax amount and navigate further to the source document For more information, see Example Scenario for Tax Returns. [316]

1. Choose Common Tasks New Tax Return Run. You can also reuse the data of an existing A29 report run. To do this, under Periodic Tasks A29 Report Runs, select a run and then choose Copy . The data is copied automatically for the new run and you can adjust it accordingly. Alternatively, you can use an existing tax return as the basis for a new run. To do this, under Tax Returns A29 Reports, select a tax return and choose Actions and Schedule Tax Return Run for Next Period . 2. Enter the Company Tax Arrangement and the period to be taken into account for the run. We recommend that you always choose a period from January 1 to the end of the current reporting period to make sure that all open tax items are taken into account during the run. To create an amended tax return for a tax return that you have previously submitted to the tax authority, set the Correction Run indicator. 3. Choose Save to create the tax return run. The system automatically assigns a number to the run as well as the status In Preparation. 4. Choose Activate and perform one of the following actions : To start the run immediately (with status Active) and create a tax return, choose Save and Close .
To perform the run later, (to distribute the system load, for example), set the Single Run indicator and enter the time entries and then choose Save and Close . If no open tax items are found in the selected period, then no tax return is created.
Under Tax Returns A29 Reports, you find your A29 reports with the status In Preparation. For more information, see, Quick Guide for A-29 Reports Mexico [380]
7.7 Reports
7.7.1 Open VAT / Sales Tax Items
You use this report to display the tax receivables and tax payables to be reported for a selected reporting period. The source for all amounts displayed in the report is the Tax Register [315]. The amounts are shown in tax return currency and thus can deviate from the transaction currency:
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Per default the report shows the tax base amounts and the applicable tax amounts. The Applicable Tax Amount is the actually posted tax amount with deductibility taken into account. The tax base amount is the base amount directly used for the tax calculation. In addition, you can optionally display the following keyfigures or characteristics: Internal Tax Amount: The internal tax amount is automatically calculated when entering the business transaction or source document.

Difference: A difference amount between the internal tax amount and the tax amount. Tax Amount: Amount that was actually posted. Document Amount: Gross amount of the items in the original transaction or source document Exemption Amount: Tax base amount that is exempt from tax. Tax Amount Overridden: If the tax amount was manually changed in the business transaction or source document and thus differs from the internal tax amount, this indicator is automatically set in the report. To display the Tax Amount Overridden indicator in the report, you must first drag and drop this field from the Not Currently Shown section to the Rows section. To display Internal Tax Amount, Difference, Tax Amount, Document Amount or Exemption Amount in the report, click on the multiple selection symbol in the left menu area under Columns and add the missing entries. If your company is a parent company of a tax reporting group you can also display the tax items of the tax reporting group. To do this, on the selection screen set the Include Subsidiaries Indicator. For more details you can directly navigate to the line item reports. To do this, click (left mouse button) on an entry to display the context menu.
See Also

7.7.2 Reported VAT / Sales Tax Items
You use this report to display for a selected reporting period all reported tax receivables and tax payables as well as the related tax returns. The source for all amounts displayed in the report is the Tax Register [315]. The amounts are shown in tax return currency and thus can deviate from the transaction currency:

Difference: A difference amount between the internal tax amount and the tax amount. Tax Amount: Amount that was actually posted.
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Document Amount: Gross amount of the items in the original transaction or source document Exemption Amount: Tax base amount that is exempt from tax. Tax Amount Overridden: If the tax amount was manually changed in the business transaction or source document and thus differs from the internal tax amount, this indicator is automatically set in the report. To display the Tax Amount Overridden indicator in the report, you must first drag and drop this field from the Not Currently Shown section to the Rows section. To display Internal Tax Amount, Difference, Tax Amount, Document Amount or Exemption Amount in the report, click on the multiple selection symbol in the left menu area under Columns and add the missing entries. If your company is a parent company of a tax reporting group you can also display the tax items of the tax reporting group. To do this, on the selection screen set the Include Subsidiaries Indicator. For more details you can directly navigate to the line item reports. To do this, click (left mouse button) on an entry to display the context menu.
See Also

7.7.3 All VAT / Sales Tax Items
You can use this report to display all VAT / sales tax items (that is, all reported and open tax receivables and tax payables, their tax base amounts, and the underlying source documents) for a selected reporting period. The source for all amounts displayed in the report is the Tax Register [315]. The amounts are shown in tax return currency and thus can deviate from the transaction currency:

Difference: A difference amount between the internal tax amount and the tax amount. Tax Amount: Amount that was actually posted. Document Amount: Gross amount of the items in the original transaction or source document Exemption Amount: Tax base amount that is exempt from tax. Tax Amount Overridden: If the tax amount was manually changed in the business transaction or source document and thus differs from the internal tax amount, this indicator is automatically set in the report. To display the Tax Amount Overridden indicator in the report, you must first drag and drop this field from the Not Currently Shown section to the Rows section. To display Internal Tax Amount, Difference, Tax Amount, Document Amount or Exemption Amount in the report, click on the multiple selection symbol in the left menu area under Columns and add the missing entries.
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If your company is a parent company of a tax reporting group you can also display the tax items of the tax reporting group. To do this, on the selection screen set the Include Subsidiaries Indicator. For more details you can directly navigate to the line item reports. To do this, click (left mouse button) on an entry to display the context menu.
See Also

7.7.4 VAT / Sales Tax Calculation Overview
This report is used to compare, at the journal entry level, the proportional tax amount determined against the tax amount that was actually posted. For this report, all business transactions are used where the transaction date is within the posting period that you have specified as the selection parameter for the report. If differences are found, the related journal entry numbers are also displayed. You can trace the differences displayed in the report back to the journal entry or source document. The data source for all amounts displayed in the report is the Tax Register [315].
Features

For more information about the standard variables, see Overview of Reports in Financial Management. You can save the values you specify on the selection screen as a report variant that you can use the next time you run this report. You can use the context menu of selected fields (for example, journal entry ID) to navigate to the journal entry or journal.
Tax Variances in the Report

The report calculates the tax amounts first based on the journal entries. A tax difference is displayed in the report when the calculated tax amount differs from the tax amount posted. The internal tax amount is already calculated by the system when you enter the business transaction. If the internal tax amount was manually changed in the business transaction and thus differs from the amount posted, the Tax Amount Overridden indicator is set in the report. For journal entries that were created in a previous release, no values are displayed under Internal Tax Amount. To display the internal tax amounts for any existing differences, you first need to show the appropriate column in the report. To do this, in the left menu area under Columns, click on the multiple selection symbol and copy the entry Internal Tax Amount. You check an Internal Tax Amount that differs from the Posted Tax Amount by choosing the context menu (left mouse button) for the selected amount and switching to the source document by choosing Journal Entry. Check the tax data and reverse the entry, if necessary, or perform a correcting entry. You can enter tax amounts manually in the following transactions and journal entry vouchers:
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Work Center Payables, Receivables
Transaction or Journal Entry Voucher Invoice/credit memo Manual entry of a receivable/payable Supplier Invoice Payment allocation Incoming cash payment/outgoing cash payment Incoming check/outgoing check Outgoing bank transfer Outgoing wire transfer Expense report Manual tax entry
Supplier Invoice Payment Management
Travel and Expenses, Costs and Revenues Tax Management
See Also

7.7.5 Withholding Tax Items
You can use this report to display all payments relevant for withholding tax for a specified period. The display includes the underlying invoices, the withholding tax amounts, and the tax base amounts relating to each payment. With the default settings, the values are displayed in the currency of the withholding tax return. For this report, the tax register serves as the source of data for the withholding tax amounts and the tax base amounts. Before withholding tax reports can be created, you must make the following settings for master data:
Supplier Base work center: You need to have stored suppliers with data relevant for withholding tax. For this, you choose Common Tasks New Supplier. Choose View All to switch to Financial Data Tax Data. Enter the tax number, the withholding tax classification, and an existing tax exemption. Product Data work center: You need to mark the products and services from suppliers as relevant to withholding tax so that the system can automatically determine the withholding tax data for these products and services and copy it into the withholding tax return. For this, select the relevant item for processing under Services or Materials and then switch to Purchasing Withholding Tax.
Features
When you have run the report, default values are displayed for the required entry fields in the selection screen. Make any necessary changes.
See Also
Reports View
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Overview of Reports in Financial Management Overview of Data Sources in Financial Management
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8 Travel and Expenses

8.1.1 Travel Advances Overview
You can provide your employees with travel advances for upcoming business trips. When the employee returns from the trip and submits the actual travel expenses for reimbursement, the advance is deducted from the reimbursement amount. This document describes the preparatory steps required in business configuration and the steps in the process itself. Only the basic process is described, since the exact procedure differs from company to company.
Prerequisites
To enable the use of advances, log on to the Business Configuration work center as a key user and perform the following steps:
Create a clearing account for advances

1. In the Activity List view of the Business Configuration work center, go to the Fine-Tune phase. 2. In the Financial and Management Accounting area, choose Chart of Accounts, Financial Reporting Structures, Account Determination > Edit Chart of Accounts. Check whether the chart of accounts that you want to use contains an account for advances. If no such account exists, create a new account for advances with open item management in the required chart of accounts. For more information on editing charts of accounts, see Display and Edit Charts of Accounts. 3. Choose Edit Financial Reporting Structures. Under Financial Reporting Structures, add the new account to your reporting structure. 4. Choose Maintain Account Determination Group. Go to General Ledger > Account Determination > Costs, and set the indicator for use in the expense report. 5. Select the account determination profile. In the detail screen for costs, go to the General Costs tab. Add the Account Determination Group for General Costs and assign to this the account for advances. Note the name (alias code) of the account determination group. For more information, see Automatic Account Determination.
Create a receipt type for advances

1. In the Activity List view of the Business Configuration work center, go to the Fine-Tune step. 2. Select the Cash Flow Management business area. 3. Choose Expense Reporting > Edit Receipt Types. 4. Create a receipt type named Advance and enter the required data. 5. Assign the receipt type to an expense reimbursement group so that its usage is restricted to a particular group of employees. 6. Assign the name listed for the account determination group (alias code) to the Expense receipt type.
SAP Business ByDesign FP3.5 Travel and Expenses
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Check the expense arrangement

To make sure an employee can use the new expense type, check the employees expense arrangement in the Business Configuration and change the expense reimbursement group if necessary.
Process Flow
Once you have completed the above fine-tuning steps, you can create and process advances as follows:
Creating an advance
A travel advance can be applied for by an employee or by an expense clerk on the employee's behalf: 1. If you are the expense clerk, in the Travel and Expenses work center, go to the Expense Reports view. 2. Choose New. In the dropdown list, choose Expense Report on Behalf. 3. Enter the employees data, the type of expense report, the business purpose, and the start and end dates. Then enter a receipt with the receipt type Advance and the amount of the advance. 4. Click Confirm to finish.
Approving an advance
Managers perform the following steps to approve an advance: 1. In the Managing My Area work center, go to the Approval view. 2. Select an advance and click Approve. This generates a payable to the employee and posts the expense in the general ledger.
Paying out an advance

For the accountant to pay out an advance to an employee, either manually or by means of an automatic payment run, follow these steps: 1. In the Payables work center, go to either the Suppliers view (for a manual payment) or the Periodic Tasks view (for an automatic payment run). 2. The advance can now be paid out to the employee in the standard payment process for payables.
Submitting actual travel expenses after a business trip

To submit your actual travel expenses after returning from a business trip: 1. In the Travel and Expenses work center, go to the Expense Reports view. 2. Open the expense report for editing and go to the Receipts tab. 3. Delete the advance from the list of receipts and enter the actual expenses. 4. Go to the Review tab. The recalculated payment and the open reimbursement amount are displayed.
Approving the reimbursement

After the travel expense clerk has checked the expense report, the employees manager performs the following steps to approve the reimbursement. The expense clerk or accounts payable clerk then triggers the payout to the employee. 1. From the Travel and Expenses work center, go to the Managing My Area work center. 2. Go to the Approval view.
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3. Approve the reimbursement. This generates a payable to the employee for the open reimbursement amount and books the expense in the general ledger. The reimbursement is then paid out as a manual payment or in a payment run. If the travel expenses are less than the amount of the travel advance, the system generates a receivable for the difference. This receivable is then applied against the employees next expense report. If an expense report is created for a date in the future, the reimbursement rates are deactivated.
8.1.2 Review and Approval of Expense Reports Overview

SAP Business ByDesign System supports the complete expense reporting and reimbursement process. This includes creating an expense report, reviewing and approving it, as well as paying out the reimbursement amount. Depending on the scenario, the roles and the configuration settings, different approval workflows are possible.
Prerequisites
The standard settings in the business configuration define a review of an expense report by the expense clerk and the approval by the responsible line manager, cost center manager or project responsible. Additionally you can define threshold amounts for a review or an approval of the expense report, so that the system only triggers a review or an approval when the expense report exceeds a given amount. If an approval is defined, a dual control is also in place. This means that the approver of an expense report cannot be the same person that created it. An exception of this principle exists only for those employees who are the responsible manager, cost center manager or project responsible. They can approve their own expense reports. If an additional control is wanted for these managers, an alternative approver has to be set up in the Application and User Management work center. There you first assign the work center Managing my Area to the employee you want as alternative approver, and then restrict the employee's authorization to the respective company in the same work center under Task Distribution > Employee Work Distribution.
Features
The following table shows the standard approval workflows that are in place for the different combinations of configuration settings, role of the expense reporter and work center used: Approval Workflows
Business Configuration Scenario Every employee in the Home work center > Employee Self-Services (ESS) Expense clerk in the Travel and Expenses work center Manager, cost center manager or project responsible in the Managing my Area work center Approves Payables accountant in the Payables work center
With approval
Employee reports his own travel expenses in Home work center with ESS
Creates and saves Reviews
Pays
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With approval
Expense clerk reports expenses on behalf of a colleague in Travel and Expenses work center Expense clerk reports Creates, saves, own expenses in Home and reviews work center with ESS Manager reports expenses for an employee in the Managing my Area work center Manager reports own expenses with ESS
Creates, saves, reviews
Approves
Pays
With approval
Approves
Pays
With approval
Reviews and revises, if necessary
Creates and approves
Pays
With approval
Reviews and revises, if necessary
Approves
Pays
Without manager Employee reports own Creates and saves Reviews expenses in Home work approval center with ESS Dual control Expense clerk reports own expenses in Home work center with ESS Creates and saves Approves
Pays
Pays
Approval depending on threshold amount for expense report Review depending on threshold amount for expense report No review, no approval
Employee reports own Creates and saves Reviews expenses in Home work center with ESS
Approves, if expense report amount exceeds threshold
Pays
Employee reports own Creates and saves Reviews, if expense report expenses in Home work amount exceeds center with ESS threshold
Pays
Employee reports own Creates and saves expenses in Home work center with ESS
Pays
8.1.3 Rule of 183 - Austria
8.1.4 Rule of 5/5/15 - Austria
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8.1.5 Nonmonetary Compensation - Germany Overview

Employment income that is paid in forms other than money (such as free meals) is called nonmonetary compensation. Nonmonetary compensation is treated as imputed income for tax purposes. Any compensation that an employee receives in the form of free meals is treated as income to which employment and social insurance apply. The value of nonmonetary compensation is set by law in the Ordinance Regulating the Value of Nonmonetary Compensation (Sachbezugsverordnung). Nonmonetary compensation does not reduce the meals per diems that employees receive on business trips. In the expense report there is a Free Meals link where you can enter meals per diem deductions in cases where employees receive free meals during a business trip. The link is only visible if you have defined corresponding company-specific deductions in configuration.
Features
Nonmonetary compensation is entered by employees in their expense reports. You can handle nonmonetary compensation in the following ways:

Nonmonetary compensation is automatically transferred to the employee's payroll and taxed there. Employees must pay tax on nonmonetary compensation themselves. You deduct the nonmonetary compensation from the reimbursement amount so that it does not have to be taxed.
Taxation of Nonmonetary Compensation

To ensure that the nonmonetary compensation is taxed, you enter the values for free meals as receipts. SAP provides the following receipt types for this purpose:

Nonmonetary Compensation for Breakfast, Taxable Benefit Nonmonetary Compensation for Lunch, Taxable Benefit Nonmonetary Compensation for Dinner, Taxable Benefit
Taxable benefits are treated as wages for tax purposes, which increases the employee's taxable income. If you want the employee to pay tax on the nonmonetary compensation, you can use these receipt types for that purpose. If your solution scope includes Payroll, the system transfers these amounts to Payroll automatically. If Payroll is not part of your solution scope, you need to take steps to ensure that the employee pays tax on these amounts.
Deduction of Nonmonetary Compensation from Reimbursement Amounts

You can enter nonmonetary compensation as deductions in the following ways:
Define separate deduction receipt types for nonmonetary compensation in configuration If you want to use nonmonetary compensation amounts as deductions, define three new receipt types: Nonmonetary compensation for breakfast, deduction

Nonmonetary compensation for lunch, deduction Nonmonetary compensation for dinner, deduction
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To do this, proceed as follows: 1. In the Business Configuration work center under Activity List > Fine-Tuning > Cash Flow Management, select the Expense Reports Germany activity. 2. Choose the Edit Receipt Types link. 3. Add the receipt type Nonmonetary compensation for breakfast, deduction. 4. Make the following settings: Definition tab: Expense Category column: Other

Taxation column: Domestic purchase (exempt) Payment and Taxation column: Reimbursement amount (payment, no taxation)
Expense Reimbursement Groups tab: Add the Employees and Managers groups. Maximum Amounts tab: For each expense reimbursement group, enter the value of -1.50 EUR (2008) and in the Reaction column select the option No reaction (amount is default value).
Account Determination tab: Add an account determination group and select an account in the Account Determination Group for Expense Account column.
5. Add the receipt types Nonmonetary compensation for lunch, deduction and Nonmonetary compensation for dinner, deduction. Proceed as described above, but on the Maximum Amounts tab enter a value of -2.67 EUR (2008). The receipt types you define are then available in Expense Reports with the corresponding default values. You can remove the receipt types delivered by SAP from the Receipt Type value help offered for selection in Expense Reports by delimiting their validity in the following way: 1. In the Available Receipt Types table, select the receipt type to be removed. 2. In the Details section, on the Definitions tab, click Add Row to make the Valid To date of the selected receipt type editable. Otherwise it is a read-only field. 3. Enter a new Valid To date for the selected receipt type to delimit it as of the date you require. 4. Select the new row you added below this and delete it.
Enter as Other Expenses in Expense Reports As a temporary solution, you can use the receipt type Other Expenses with a negative value. This deduction reduces the reimbursement amount, not the meals per diem. This is necessary because a deduction is needed even if the meals per diem is 0.00 EUR (if the employee was traveling for less than eight hours).
8.2 Expense Reports View

8.2.1 Expense Reports Quick Guide
You can access the Expense Reports view from the Travel and Expenses work center. This view gives you a central location for managing and reviewing expense reports. You can then submit these expense reports for management approval and subsequent reimbursement. In addition to creating your own travel or other expenses reports, you can create these reports on behalf of other employees.
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Business Background
For a complete overview of the scenario and its single process steps, see Expense and Reimbursement Business Scenario. The system supports the complete expense reporting and reimbursement process of creating an expense report, reviewing and approving it, as well as paying out the reimbursement amount to the employee. Depending on the scenario, the roles and the configuration settings, different approval workflows are possible, see Expense Report Review and Approval [407]. Expense and reimbursement also allows to pay out travel advances for upcoming business trips. For more information, see Travel Advances [405]. Employment income that is paid in forms other than money (such as free meals) is called nonmonetary compensation. Nonmonetary compensation is treated as imputed income for tax purposes. Any compensation that an employee receives in the form of free meals is treated as income to which employment and social insurance apply. The value of nonmonetary compensation is set by law in the Ordinance Regulating the Value of Nonmonetary Compensation (Sachbezugsverordnung). For more information, see Nonmonetary Compensation Germany [409].
Tasks Create a New Expense Report

The New Expense Report guided activity allows you to record your business expenses in the system, so you can be reimbursed by your company. The guided activity allows you to create reports for travel, weekly, or other expenses. To complete an expense report, you enter the details of the expenses incurred, attach your receipts, and review the details you entered. The report is then sent for review by an expense clerk, and approval by the appropriate manager. Once the report has been approved, the reimbursement is processed. For more information, see Create a New Expense Report.
Create a New Expense Report on Behalf

The New Expense Report guided activity allows you to record business expenses in the system for a colleague, so they can be reimbursed by your company. The guided activity allows you to create expense reports for travel, weekly, or other expenses. To complete an expense report, you enter the details of the expenses incurred, attach your receipts, and review the details you entered. The report is then sent for approval by the appropriate manager. Once the report has been approved, the reimbursement is processed. For more information, see Create a New Expense Report on Behalf [412].
Create a Travel Request Using an Expense Report

In cases where you want to submit a travel request before your trip, because you need approval by your manager or because you need travel advances, you can create an expense report for this purpose. For details on the prerequisites for advance payments, see Travel advances [405]. 1. Go to the Expense Reports view and click New .
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2. Enter Business Trip as the type of expense report, a business purpose, and the start and end dates. 3. You do not need to enter any receipts. If necessary, you can enter receipts for advance payments. You should not enter other receipts because that would result in reimbursements being generated, which is not wanted in this case. 4. Finish the expense report and click Close . The expense report is saved and the review and approval process is started.
8.2.2 Create New Expense Report on Behalf Overview

The New Expense Report on Behalf guided activity allows you to record business expenses in the system for a colleague, so they can be reimbursed by your company. The guided activity allows you to create expense reports for travel, weekly, or other expenses. To complete an expense report, you enter the details of the expenses incurred, attach your receipts, and review the details you entered. The report is then sent for approval by the appropriate manager. Once the report has been approved, the reimbursement is processed. .
Procedure
1. In the Expense Reports view of the Travel and Expenses work center you select New Expense Report on Behalf. The New Expense Report screen opens and you are first prompted to enter the employee ID. Click Next to display the other entry fields. 2. To specify the type of expense report and to enter the general information associated with the expense report, click the drop-down arrow next to the Type of Expense Report field, then choose an expense report type.
If you choose Business Trip from the drop-down list, the system automatically displays fields associated with the report type, including business purpose, dates and location, and mileage. Enter details in those fields, then click Next to go to the next step. For some countries, you can choose Period-based report (receipt and mileage reimbursement) from the dropdown list. The system allows you to enter several trips as well as other business expenses. It automatically displays fields associated with the report type, including business purpose, dates, and mileage. Enter details in those fields, then click Next to go to the next step If you choose Receipts only from the drop-down list, the system automatically displays fields associated with the report type, including business purpose and comments.
Depending on your selection the entry screen is adapted. 3. For a business trip you must enter at least a Business purpose, start date and country. It is possible to use the function Copy data from other expense report to fill in all data that match a prior trip. 4. To change the standard cost assignment defined in the employee master data for this expense report, click Edit Cost Assignment to open the cost assignment dialog. 5. With a click on Add Row two entry fields appear, where you can enter a percentage and an account assignment type such as cost center, project, sales order. Use the value help to select the appropriate account assignment type from the list. 6. When you select an account assignment type, the system automatically offers you the corresponding entry fields for this type, so that you can enter further details of your cost assignment.
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if you select Sales Order, for example, you will be able to enter the sales order and sales order item. If you select the account assignment type project task, you will be able to enter the project task. To select the project task, you can use the value help for this field. As a standard it shows all project tasks to which the employee is assigned directly or indirectly, including project tasks performed for the buying company. If you enter such a project task, the system automatically finds the corresponding intercompany project, purchase order, and purchase order item and displays these under Intercompany Information. If you want to see a wider range of available project tasks, you have to use the Advanced search. Here you can delete the Employee ID and use only the Company ID to search all available project tasks. 7. Click Next to go to the Receipts step. 8. In the Receipts step under Expense Receipts, click Add Row to add a receipt. The system automatically assigns a receipt ID number in the ID field. In the Receipt Type field, click the value help and choose a receipt type. The system automatically displays fields associated with the receipt type. Enter details in those fields. In the Receipt Amount field, enter the receipt amount and select a currency. 9. If you want to add attachments for the individual receipts you have entered, go to the Attachments tab in the Receipts step and click Add . You need to decide how you want to attach your receipts.
If you choose File, the Add File dialog box displays. Browse for the file you want to upload and click Add . Click Next to go to the next step. If you choose Link, the Add Link dialog box displays. Enter the details associated with the link and select Add. Click Next to go to the next step.
10 In the Attachments step, on the General Attachments tab, you can add any other general attachments as required. . Go to the Attachments Overview tab to display an overview of all attachments added. 11 After you have reviewed the details, expenses, and receipts you have entered, save your expense report to the . system. Your new expense report is saved to the system, and sent for review and approval.
Example
Jack Ingersoll has received expense details from a colleague who is currently on vacation. Jack needs to create an expense report for his colleague so they can be reimbursed. To begin creating the expense report for his colleague, Jack opens the New Expense Report on Behalf guided activity and begins to enter the employee and expense details. Once he has added all the expenses, he attaches the relevant receipts, and reviews his entries. He then saves the expense report, which is sent for approval by the relevant manager for his colleague, who receives the reimbursement in due course, once the expense report has been approved.
8.3 Expense Arrangements View

8.3.1 Expense Arrangements Quick Guide
You can access the Expense Arrangements view from the Travel and Expenses work center. In this view you can maintain central settings that define the reimbursement entitlements for employees. Each employee is assigned an expense arrangement and these arrangements define their expense reporting entitlement. Expense arrangements are valid for a defined period of time. Expense reporting only works when a valid arrangement exists for the time period of the trip.
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Tasks Create New Expense Arrangement

1. In the Expense Arrangement view you click New expense arrangement screen opens. and then Expense Arrangement. The
2. Enter the employee data. In the Validity Assignment section you can add a new set and assign the appropriate validity. 3. Under Details, you can assign an Expense Reimbursement Group for receipts from the predefined groups available, depending on what receipt types the employee should be authorized to see and submit. For example: All: Employees assigned to this group are authorized to see and submit all receipt types.
Restricted: Employees assigned to this group are authorized for only a limited set of receipt types.
4. In the Cost Assignment section you can change or delete available cost assignments or add a new one. 5. In the Bank Details section you can choose from available bank details and select a payment method. If no payment method is selected, the standard payment method is used by the system.
Edit Expense Arrangement

1. In the Expense Arrangement view you select an existing expense arrangement from the list and click Edit . The expense arrangement screen opens. 2. In the Validity Assignment section you will see the available sets for this expense arrangement which you can either restrict in validity or activate. You can also add a new set here and assign the appropriate validity. 3. In the Cost Assignment section you can change or delete available cost assignments or add a new one. 4. In the Bank Details section you can choose from available bank details and select a payment method. If no payment method is selected, the standard payment method is used by the system.
8.4 Expense Settlement Recalculation View

8.4.1 Quick Guide for Expense Settlement Recalculation Runs
You can access the Expense Settlement Recalculation Runs view from the Travel and Expenses work center under Exception Handling. This view enables you to manage and review reports of expenses that are already settled. If, for example, legal changes for reimbursement rates are issued too late and are consequently not delivered by SAP, expense reports may contain outdated reimbursement rates. You can use the Expense Settlement Recalculation run to recalculate the affected expense reports after the legal changes have been implemented.
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The system recalculates all expense reports for a given period and independent of their status. The results are then sent to the financial accounting for posting and to payroll for payout. The Exception Handling view does not exist for the United States, as expense reimbursement is based on receipts.
Business Background
You can find more information about automatic mass processing in Mass Data Runs (MDR).
8.5 Mileage Accumulation View

8.5.1 Mileage Accumulation Quick Guide
You can access the Mileage Accumulation view from the Travel and Expenses work center under Exception Handling. In this view, you can see the mileage and reimbursement accumulation of an employee. You can also set the initial value for mileage accumulation and reimbursement amount accumulation for an employee.
Tasks Set Initial Value for Mileage Accumulation

1. Open the Mileage Accumulation view and select an employee from the given list. Click View to open the Mileage Accumulation Overview quick activity. If the employee is not in the list, click New to open the New Mileage Accumulation quick activity. Enter the employee ID and click Save and Close to add him to the list of employees. 2. Click Set Mileage to Initial Value and enter the relevant details and then click OK . Click Close to return to the Mileage Accumulation subview. The initial value for your mileage accumulation is set in the system and will be taken into account for all expense settlements of this employee. This functionality is valid for the following countries:

UK France Canada Switzerland
Set Initial Value for Reimbursement Amount Accumulation

1. Open the Mileage Accumulation view and select an employee from the given list. Click View to open the Mileage Accumulation Overview quick activity.
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2. Click Set Reimbursement Amount to Initial Value and enter the relevant details and then click OK . Click Close to return to the Mileage Accumulation view. The initial value for your reimbursement accumulation is set in the system and will be taken into account for all expense settlements of this employee. This functionality is valid for Austria only.
8.6 Day Accumulation View

8.6.1 Quick Guide for Day Accumulation - Austria
In this view, you can see the total accumulated days for business trips to various communities in Austria for an employee. You can also set the initial value for day accumulation for an employee. You can access the Day Accumulation subview from the Travel and Expenses work center under the Exception Handling view.
background

Rule of 5/5/15 - Austria [408] Rule of 183 - Austria [408]
Task Create Business Trip History

1. Open the Day Accumulation view and select an employee from the given list. Click View to open the Day Accumulation Overview quick activity. If the employee is not in the list, click New to open the New Day Accumulation quick activity. Enter the employee ID and click Save and Close to add the employee to the list of employees. 2. Click Create Business Trip History and enter the relevant details and then click OK . Click Save to save the changes. Click Close to return to the Day Accumulation subview. The initial value for your day accumulation for each community is set in the system and will be taken into account for all expense settlements of this employee.
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8.7 Reports
8.7.1 Expense Reports By Cost Object Overview
This report provides an overview of cost distribution for travel and other expenses for different cost centers, projects, sales orders, and service orders.
Views
This report offers you the following views: By Cost Center (default) Shows the expense reports by grouped by cost center. By Project Shows the expense reports grouped by project as well as the total expenses for each employee by project. By Sales Order Shows the expense reports grouped by sales order as well as the total expenses for each sales order. By Service Order Shows the expense reports grouped by service order as well as the total expenses for each employee by service order.

Before running the report, you specify the data you want to see by selecting values for variables. You must specify a value for all mandatory variables. In the system, mandatory variables are indicated by an asterisk (*). The most important variables are explained below.
Country of Reporting The country of reporting is the country in which your company is located. For a company in the United States, for example, you select US01 - US settlement. Country The country that was the destination of the trip. Created On The date range in which the expense reports were created. Expense Report Category The following categories are available: Trip-Based: The expense report is for a single business trip.

Receipt-Based: The expense report contains receipts only. Period-Based: The expense report is for expenses that were incurred during a particular period of time, such as a week or month. This category can only be selected if you specified US01 - US settlement as the country of reporting.
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Expense Report Start Date The date on which the business trip began. This variable is only relevant if you have selected Trip-Based or PeriodBased as the Expense Report Category. Receipt-based expense reports do not have an expense report start date. Expense Report ID If you want to restrict the displayed data to particular expense reports, enter their IDs here.

The report shows the expense reports created by your employees, along with the relevant cost centers, projects, sales orders or service orders. An expense report is listed under more than one cost center if the expenses affect multiple cost centers. Duration is the length of the business trip in days. The Posted Amount is the amount that is posted and assigned to the cost center, project, sales order or service order. Note that this amount includes VAT. To analyze the data in this report:

Use the filters to manipulate the display of data in the content pane. To further analyze data in this report, you can drag characteristics to rows and columns.
To display further details of an expense report, click the relevant expense report with the secondary mouse button and choose Goto > Display Details from the context menu. By default, the data is displayed grouped by cost center. You can also view the data grouped by project: Drag the Project characteristic to the table as a column to the left of Employee. To restrict the data to a single cost center, choose Filter > Choose Filter Value and enter the cost center. You can filter and sort the data by all columns.
See Also

8.7.2 Expense Reports Overview Overview

This report provides an overview of the expense reports created by your employees or expense clerks in a selected period.

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Country of Reporting The country of reporting is the country in which your company is located. For a company in the United States, for example, you select US01 - US settlement. Created On The date on which the expense reports were created. Expense Report Category The following categories are available: Trip-Based: The expense report is for a single business trip.

Receipt-Based: The expense report contains receipts only. Period-Based: The expense report is for expenses that were incurred during a particular period of time, such as a week or month. This category can only be selected if you specified US01 - US settlement as the country of reporting.
Expense Report Start Date The date on which the business trip began. This variable is only applicable if you selected Trip-Based or PeriodBased as the Expense Report Category. Expense Report ID If you want to restrict the displayed data to particular expense reports, enter their IDs here.
For more information about the standard variables, see Overview of Reports in Financial Management. You can save the values you specify on the selection screen as a report variant that can be used to run exactly the same report again in the future.

The report displays expense reports created by your employees, along with details such as the expense amounts claimed and the employee names. The settlement amount includes all expenses, including those that were paid by the company in advance. Note that this amount includes VAT. To analyze the data in this report:

To add additional details to the content area of this report as columns, select an expense report with the secondary mouse button and choose Attributes > Characteristic. On the Attributes tab, select the attribute you want to add and choose Add and OK. To display further details of an expense report, use the secondary mouse button and choose Goto -> Display Details. The expense report opens. From this report, you can navigate to the Receipts and Reimbursements report which contains additional details such as the reimbursement amount, the receipt type, and the amount that was prepaid by the company. To open this report, select an item with the secondary mouse button and choose Goto > Receipts and Reimbursements in the context menu. You can filter and sort the data by all columns.
See Also

Reports View Overview of Reports in Financial Management
419
Overview of Data Sources in Financial Management
8.7.3 Expense Reports Receipts and Reimbursements Overview

This report displays details of the expense reports created by your employees. The details include the receipt types for each settlement and the reimbursements.

Before running the report, you can specify the data you want to see by making value selections for variables. You must make a value selection for all mandatory variables. In the system, mandatory variables are indicated by an asterisk (*). The most important variables are explained below.
Country of Reporting The country of reporting is the country in which your company is located. For a company in the United States, for example, you select US01 - US settlement. Created On The date range in which the expense reports were created. Expense Report Start Date The date on which the business trip began. This variable is only relevant if you have selected Trip-Based or PeriodBased as the Expense Report Category. Receipt-based expense reports do not have an expense start date. Expense Report Category The following categories are available: Trip-Based: The expense report is for an individual business trip.

Receipt-Based: The expense report contains receipts for miscellaneous expenses only. Period-Based: The expense report is for expenses that were incurred during a particular time period, such as a week or month. This category can only be selected if you specified US01 - US settlement as the country of reporting.
Expense Report ID If you want to restrict the displayed data to one or more expense reports, you can specify the expense report IDs here.

The settlement amount includes all expenses, including those that were paid by the company in advance. The reimbursement amount is the amount reimbursed to the employee who claimed the expenses. These amounts include value-added tax.
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Use the filters to manipulate how the data is displayed in the content pane. To further analyze data in this report, you can drag characteristics to rows and columns.
To display further details of an expense report, click the expense report with the secondary mouse button and choose Goto -> Display Details from the context menu. You can filter and sort the data by all columns.
See Also

8.7.4 Expense Reports - Taxable and Tax-Exempt Amounts for Payroll Overview
This report displays the reimbursed expenses based on taxability. The data is divided into tax-exempt amounts, taxable benefits, amounts taxable at a flat rate, and income-related expenses.

Before running the report, you can specify the data you want to see by making value selections for variables. You must make a value selection for all mandatory variables. In the system, mandatory variables are indicated by an asterisk (*). The most important variables are explained below.
Country of Reporting The country of reporting is the country in which your company is located. For a company in the United States, for example, you select US01 - US settlement. Changed On If an expense report is changed after the taxable reimbursements have been processed in payroll, the payroll results for the employee need to be recalculated. Expense Report ID If you want to restrict the selection to one or more particular expense reports, enter the expense report IDs here.

The report displays the expense reports that contain tax-relevant reimbursements, and a breakdown of the tax details for those reports. The following amounts are displayed:
Payout to Employee Amount reimbursed to the employee based on the expense report. Tax-Exempt Amount
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Amount on which no taxes are due.
Taxable Benefit Expense reimbursed to the employee that exceeds the tax-exempt amount. Taxable benefits are treated as wages for tax purposes, which increases the employee's taxable income. Taxable at Flat Rate This amount is taxed at a fixed percentage defined by the local tax authority. In Germany, for example, meals per diem are taxed at a flat rate if the reimbursement amount is no more than twice the tax-exempt amount. Income-Related Expenses This amount reduces the employee's taxable income. Per diems and reimbursements are tax-exempt up to a legal limit. If the company's expense reimbursement rates are less than the tax-exempt amount, employees can deduct the difference in their tax returns as income-related expenses, which reduces their taxable income.

See Also

8.7.5 Expense Reports Input VAT Refund Overview

This report provides an overview of expenses that include tax, such as VAT, and that are incurred by your employees during a business trip abroad. Your company can request reimbursement of these taxes from the foreign tax authority.

Country of Reporting The country of reporting is the country in which your company is located. For a company in the United States, for example, you select US01 - US settlement. Country
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The country in which the expenses were incurred.
Receipt Date The date of the receipt. Receipt Type You can select the receipt type, such as Hotel or Taxi.

The report displays expenses that were paid in a foreign country. It also shows the total amount for each receipt type. You can use this information to submit requests for reimbursement of taxes from foreign tax authorities. To analyze the data in this report:

To display further details of an expense report, click the relevant expense report with the secondary mouse button and choose Goto > Display Details from the context menu. You can filter and sort the data by all columns.
See Also

8.7.6 Expense Reports Itinerary Overview

This report provides an overview of business trips undertaken by your employees and is based on destination. Shows only expense reports for business trips, but not including expense reports that contain receipts only.

Country of Reporting The country of reporting is the country in which your company is located. For a company in the United States, for example, you select US01 - US settlement. Country The country that was the destination of the trip.
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City The city that was the destination of the trip. Created On The date on which the expense reports were created. Arrival Date The date of arrival at the destination city. Expense Report ID If you want to restrict the displayed data to one or more particular expense reports, enter their IDs here.
This report displays the destinations of your employees. If you want to see all employees who traveled to an event such as a trade fair, specify a City and enter an Arrival Date Range. For more information about the standard variables, see Overview of Reports in Financial Management.

This report displays the destinations of the business trips. To further analyze data in this report, you can include in the display additional characteristics from the Not Shown Currently area. To display further details of an expense report, click the expense report and choose Display Expense Report from the context menu. To view the itinerary of the individual business trips, drag the Employee and Expense Report ID columns to the left. This enable you to see the data arranged by business trip and the itineraries with all destinations of the individual business trips.
See Also

8.7.7 Expense Reports - Overview of Trips to Communities in Austria Overview

This report provides a list of business trips that employees make to the different communities in Austria. You can use this report to check the accuracy of the taxable and tax-exempt values.
Features
Running the Report Before running the report, you specify the data you want to see by selecting values for variables. You must specify a value for all mandatory variables. In the system, mandatory variables are indicated by an asterisk (*). The most important variables are explained below:
Municipality ID A number sequence for the identification of politically independent municipalities or communities in Austria. Expense Report ID
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The unique identifier for an expense report. If you want to restrict the selection to one or more particular expense reports, enter the expense report IDs here.
Trip Within the Same Week Indicates whether the employee has traveled to one particular community within the same week.
For more information about the standard variables, see Overview of Reports in Financial Management . Analyzing the Report
Duration of Stay (Days) Indicates the number of days an employee stays in a community in Austria Interval Between Stays (Days) Specifies the time interval between two trips to the same community in Austria.

See Also
8.7.8 Expense Reports - Taxable and Tax-Exempt Amounts for Austria Overview
This report displays a list of taxable and tax-exempt amounts. The tax-exempt values shown in the report can be considered as income-related expenses and the employee can ask the tax authority for tax exemption. This is decided by the employer based on 16 para 19 Income Tax Act 1988.
Features
Running the Report Before running the report, you specify the data you want to see by selecting values for variables. You must specify a value for all mandatory variables. In the system, mandatory variables are indicated by an asterisk (*). The most important variables are explained below.
Expense Report ID The unique identifier for an expense report. If you want to restrict the selection to one or more particular expense reports, enter the expense report IDs here. Changed On The date on which the expense reports were changed. If you change an expense report after the taxable reimbursements have been processed in payroll, the payroll results for the employee need to be recalculated.
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Created On The date on which the expense reports were created. Trip Type The type of trip depending on the distance traveled by the employee. For example: Short business trip, long distance business trip.
For more information about the standard variables, see Overview of Reports in Financial Management. Analyzing the Report The report displays the expense reports that contain tax-relevant reimbursements, and a breakdown of the tax details for those reports. The following amounts are displayed:
Payout to Employee Amount reimbursed to the employee based on the expense report. Tax-Exempt Amount Amount on which no taxes are due. Taxable Benefit Expense reimbursed to the employee that exceeds the tax-exempt amount. Taxable benefits are treated as wages for tax purposes, which increases the employee's taxable income. Taxable at Flat Rate This amount is taxed at a fixed percentage defined by the local tax authority. In Germany, for example, meals per diem are taxed at a flat rate if the reimbursement amount is no more than twice the tax-exempt amount. Income-Related Expenses This amount reduces the employee's taxable income. Per diems and reimbursements are tax-exempt up to a legal limit. If the company's expense reimbursement rates are less than the tax-exempt amount, employees can deduct the difference in their tax returns as income-related expenses, which reduces their taxable income. Tax-Exempt Meals Per Deim Meals per diem amount on which no taxes are due.

See Also
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Product Documentation SAP Business ByDesign FP3.

Cash Flow Management

Cash Flow Management ..................................................................................

Business Background ......................................................................................

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SAP Business ByDesign FP3.5 Table Of Contents

SAP Business ByDesign FP3.5 Table Of Contents

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Payment Management ....................................................................................

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SAP Business ByDesign FP3.5 Table Of Contents

Liquidity Management .....................................................................................

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Tax Management .............................................................................................

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SAP Business ByDesign FP3.5 Table Of Contents

SAP Business ByDesign FP3.5 Table Of Contents

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Travel and Expenses .......................................................................................

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SAP Business ByDesign FP3.5 Table Of Contents

Expense Reports - Taxable and Tax-Exempt Amounts for Austria ......................................

SAP Business ByDesign FP3.5 Table Of Contents

P U B L I C 2011 SAP AG. All rights reserved.

1 Cash Flow Management

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SAP Business ByDesign FP3.5 Cash Flow Management

SAP Business ByDesign FP3.5 Business Background

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Process Flow Automatic Outgoing Payments

Manual Outgoing Payments

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2.1.2 Determination of Payment Method / Reservation Overview

In the customer or supplier master data In the open items

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Prerequisites Configuration Settings

Supplier Master Data

, select a supplier and click

Customer Master Data

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Features Payment Methods in Open Items

2.1.3 Internally Initiated Automatic Outgoing Payments Overview

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SAP Business ByDesign FP3.5 Business Background

Cash Flow Management

SAP Business ByDesign FP3.5 Business Background

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SAP Business ByDesign FP3.5 Business Background

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SAP Business ByDesign FP3.5 Business Background

P U B L I C 2011 SAP AG. All rights reserved.

2011 SAP AG. All rights reserved. P U B L I C

SAP Business ByDesign FP3.5 Business Background