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Automation of Foreign Vendor Payments

Business Requirement Document


Requirement:

Foreign Vendor Payments to be automated using F110.

Existing Process:
For the foreign vendors, on the due date of the invoice, Carrier sends a physical
copy of set of docs(e.g.:Request Letter to bank, invoice, transport doc, bill of entry, etc.)
to the bank to pay the vendor in document currency (Foreign currency). The bank then
pays the vendor in document currency and gives an acknowledgement stating the
exchange rate,charges,taxes,amount paid in document currency and INR value and
Swift MT940 bank statement which the user will upload the bank statement in SAP
(FF.5) to reconcile the SAP Main bank GL account.
Sample entry will be as follows.
Misc. GL 201190 --------------------------Dr. INR 65000.00
To - Main Bank GL 201060-----Cr.INR 65000.00

As this entry is just a dummy entry to match the Bank Balance. But the
miscellaneous GL account 201190 should get knocked off with the vendor. The user
now passes an entry in F-53 giving the exchange rate and document currency amount.
Say Doc Currency $1000.00 @ 65.00 (Exchange rate)
Vendor Ac. Dr. --------------------------------------USD 1000----INR 65000.00
To Misc. GL 201190 ----------------------USD 1000----INR 65000.00

So in existing process the bank initially pays the vendor and later shares the
exchange rate and charges incurred to the Carrier so as the user will later make the
payment to vendor in SAP with respective exchange rate.

Post MT 940 and KZ-payment entry (F-53) posted, the user clear manually GL-
201190 via t code- F-03.
Misc. GL 201190 --------------------------Dr. INR 65000.00
Misc. GL 201190 --------------------------Cr. INR 65000.00

Currently Details required on the request letter:

-Our bank account number (Can be multiple accounts).


-Our bank Account name. (Ex: Carrier Air-conditioning., UTC F&S, etc.)
-Document currency.(eg: usd, jpy, cny,eur, etc.)
-Document currency value.
-Vendor Name and address.
-Vendor Account number.
-Vendor Bank name and address.
-Vendor swift code/IBAN---Specific requirement varies case to case.
-Vendor banks correspondent bank detailsSpecific requirement varies case to case.
-Forward Contract details.

Challenges: If automated which means the vendor payment made from F110, then
there is no scope that Bank will share the exchange rate in Advance.

1) how at F110 will pic FX rate from invoice level?


2)after F110 bank will send MT940.in which inr amount will not match, then how can the
document get posted..

enhancement logic?