Payment Program Configuration

 You can decide various parameters for automatic payment program from customizing and
from application area. Most of the settings in payment program can be accessed directly
through the user side of application. The settings are divided in following categories: All
company codes; paying company codes; payment method/country; payment method for
company codes bank selection; house banks

All company codes defines: inter-company payment relationships; company code(s) that process the
payments; cash discounts; tolerance days; the customer and vendor transactions to be processed.

If company code A is making payments on behalf of another company code B, then B is the sending
company code. If a company code is not specified, the system automatically regards the sending company
code as the paying company code.

If a company code A is making payment on behalf of company code B, the company codes a records bank
posting and the company code B records the sub-ledger posting). Both companies balance by automatically
generating cross company postings.
If you know that your vendors usually grant a certain number of grace days, you can enter tolerance days
for payables for every company code, These tolerance days postpone the payment of some due items until
the next payment run, while still receiving the appropriate discounts.
Vendor/Customer Sp. G/L Transactions to be paid specifies which special general ledger transactions
can be processed with the payment program.
If activated, Payment Method supplements allow you to print and sort payments.

The Separate Payment for Each Reference setting specifies that a payment can only be used to pay invoices
and credit memos that have the same payment reference

 For each individual (paying) company code define: Minimum amount for incoming and
outgoing payments; Forms of payment advice and EDI; Bill of Exchange information

Users define the minimum amounts for payment and the forms that will be used for each paying company
code. Users define how many bills of exchange are created for each account during the payment run for
the bill of exchange payment method. Users control which open items for the bill of exchange payment
method are to be considered during the payment run using the due date specifications. In the "sender"
screen, users can define any company code dependent-standard texts to the payment forms.

 For each country, define: methods of payment (bank transfer, check etc.); master record
requirement; document types for postings; print programs; permitted currencies which are
country specific.

If a particular payment method has certain master record requirements, that is, the address is required,
invoices will not be paid with this payment method unless the requirements are met.
In this area, specify the document types that will be used for posting and clearing documents.

The name of the print program and the print data set for this payment method are also defined.
You can restrict payment methods to specific currencies. On the permitted currencies screen, enter any
currency that the payment method is limited to. If there are no entries on this screen, the payment method is
valid for all currencies.
 For defining payment method for each company code you need to set: minimum and
maximum payment amounts; whether payment abroad and foreign currency allowed;
grouping options; bank optimization; forms and payment media. This is company
code specific.
This area defines the eligible payment methods for the company code. It defines the following
specifications for each payment method, which can differ across company codes:

The minimum and maximum amounts to be processed. Any amounts lower/higher than this amount will be
excluded from the payment run. If a foreign business partner is allowed. When selected, this indicator
allows foreign customers and vendors to be processed using this payment method.
If payments via customer/vendor’ s bank abroad are allowed. When selected, this indicator allows
payments from customer and vendor banks abroad. if a foreign currency is allowed. When selected, this
indicator allows you to use foreign currency with this payment method.
if bank optimization is used. When selected, the payment program will try to pay from a bank within the
same clearing house system (ACH).
If postal code optimization is used. By using the change icon on the right-hand side, you can assign banks
to particular postal areas. When selected, the payment program looks to make payment from the bank based
on the customer/vendor's city of residence.
In the form data area, you can specify the name of the SAPscript or PDF form for the payment
media

 Components that need to be taken into consideration when selecting the paying house
bank are: ranking; amounts; accounts; expenses/charges; value dates

On the Ranking Order screen, enter the house banks in the order the payment program is to consider
them for payment for each payment method. For each payment method you need to define: which house
bank need to be considered first, second, third etc; currencies bill of exchange account. The payment
method The currency: This field must be empty if the payment method for this bank is to apply to all
currencies. Otherwise the payment method only applies to the currency entered here.
For each combination of house bank and payment method you need to define: The offset account to the
sub-ledger posting; clearing account for bill of exchange; available funds in each bank. The Accounts screen
lists the offsetting accounts for each house bank and payment method to which the payment program posts
entries

The Available Amounts screen lists the house banks and the amount of funds available at each bank.
The bank and the bank account the days until the value date when using bills of exchange. This enables
payments to be posted before their due date. In all other cases, enter 999. The value dates are then not taken
into account. Currencies: This field must be empty if the payment method for this bank is to apply to all
currencies. Otherwise the payment method only applies to the currency entered here. Amount available for
outgoing payment: Enter the amount of funds available at the house bank. Note that the amount field is not
updated automatically after each payment run.

For each combination of house bank and payment method, the value date is used with cash management
and forecast; the number of days until value dates plus posting date .Value date = payment run posting date +
days until value date. The pays entered here correspond to the days specified for the available amounts.

Bank selection: expense / charges: assess additional charges for incoming and outgoing payment; used with
bill of exchange; additional automatic posting configuration.
The functions for incoming and outgoing payments feature a bank charges field for users to enter any bank
charges that are part of the payments made or received. For incoming payments, the system subtracts the
bank charges from the clearing amount. For outgoing payments, it adds the charges to the clearing amount.
 The system also posts the charges to an expense account. To do this, it requires a posting key and an
account assignment, both of which are already defined in the standard system. If users are not using the
charts of accounts delivered with the standard system, they have to enter their own account data to post
bank charges. The Relevant to cash flow indicator must be set in the master record of accounts that record
bank charges

 The data in the document takes precedence over the payment program related data in the
master records. The standard system contains the common payment methods and their
corresponding forms which have been defined separately for each country. Tolerance for
grace period for a particular vendor can be different for all company codes. For individual
company code, user can define how many bills of exchange are created for each account
during the payment run for bill of exchange method. Document types for payments can be
defined in payment method/country setting. (Not company code).

 Payment method can define which house bank should be considered and in what
currency. For each combination of house bank and payment method you can specify the
offsetting account for the sub-ledger posting and the clearing account. Payment method
for line item can be different than the header data in the document. This has to be
activated in the payment method supplements. In the payment method for company code
setting you can specify the name of SAP script or PDF form for the payment media.

Payment Medium Workbench (PMW)

 In PMW, the user is provided with a generic payment medium program for all medium
payment formats whose variants are to be entered in customizing. You can convert each
payment method individually to the PMW payment format in the same system and same
payment run.

 A payment method becomes a PMW payment method in 4 steps:

1. Payment media format is assigned to the payment method after you have determined that you want to
use PMW. You may have to enter substitute format.

2. The note to the payee is assigned to the payment method by origin.

3. You enter the form for the accompanying sheet provided by SAP in the payment method for each
company code (Under Next Form)

4. Finally you must create and assign selection variants

 You can adjust payment media formats to your special requirements. However, this is not
possible by using existing customizing, but by knowing the structure and properties of the
format you can do.

 Granularity: Yan create more files (eg. One file for one company code) by specifying the
granularity. The granularity is specified in the definition of the payment medium format
and determines how the payment media are to output separately in payment group.
 Implementing the modifications: You can influence the creation of the files using
customer-defined functions modules. These are callup points that replace the standard
modules.

 Previously, payment media formats were programmed in approximately 60 standard

payment media programs (RFFO*). In the PMW however, these formats are defined
outside the payment media program: Uniformity; Formats can be easily changed without
making modifications; New formats can be created (no programming experience is
required if you use the DME engine).

 After the creation of payment media has been triggered the individual payment methods
are processed and the programs are launched. (RFFO* for standard methods and
SAPFPAYM_SCHEDULE for PMW).

 A PMW payment method is always assigned a PMW format and a content template for
the note to payee. Every PMW format has up to 3 types of text field for reference
information. (Invoice Information; Internal reference; External reference).

Automating the Payment Process

 You can use the Schedule Manager to automate periodically recurring activities along
with program scheduling functions for the payment process. (T. code: SCMA)

 The task list is the key element in the Schedule manager. It represents a collection of
activities to be carried out over a period of time. The system provides a set of instructions
to help you to create your tasks. You can define four different types of tasks in the task
plan: Program with variant notes, transaction and process definition.

Related IMG Settings, Application Transactions & Reports

 Payment program configuration in the system

IMG ® Financial accounting ® AR & AP ® Business transactions ® Outgoing payments ® Automatic

outgoing payments

 Setting in the payment program for all company codes

Accounting ® Financial accounting ® AP ® Periodic processing ® Payments ( F110 )

 Create a payment run & entering parameters for the payment program (vendor)

Accounting ® Financial accounting ® AP ® Periodic processing ® Payments ( F110 )

  Scheduling a payment proposal

Edit ® Proposal ®Schedule proposal

 Configurable payment list

IMG ® Financial accounting ® AR & AP ® Business transactions ® Outgoing payments ® Automatic

outgoing payment ® Payment proposal processing ® Make settings for displaying payments

 Carry out payment run & display payment data

Edit ® Payment ® Schedule payments ® immediately

Edit ® Payments ® Display

 DME Administration

Environment ® Payment medium ® DME Administration

Debit Balance Check

 In some cases, the payment run can result in payment being made even though the
account has debit balance.

The debit balance check can be carried out after payment proposal has been created. This
check offsets the entire due debit items without an incoming payment method against the
proposed system. If the resultant credit balance is less than the minimum payment amount, it
will be added to exception list and is placed on list of blocked amount. The
Questions

1 Which of the following statements are true with regard to the customizing
setting for banks in the automatic payment run? (3)
a The sequence of the banks for processing outgoing payments is selected
randomly.
b You can only determine one payment method per house bank.
c You can select several payment methods per country.
d You can specify by bank and method the anticipated number of days before
the bank account is debited.
e You can determine the banks to be used for payments according to postal
code.

2 When you carry out automatic payment, bank through which payment is
effected is based on (1)
a Ranking order of house banks
b House banks maintained for specific business areas
c House banks entered in the parameters of the run
d Ranking order and available balance in the accounts

3 The automatic payment program (1)

a Generates payment orders only
b Generates payment orders and accounting transactions
c Generates accounting transactions only
d None of the above

4   A vendor is also a customer.It is possible to clear both role against each

other,which setting necessary? (2)
a   Vendor number in customer a/c vice versa
b Customer & vendor must be assigned to same grp a/c.
c   Clearing with vendor must be selected in customer a/c & vice versa.
d non of the above

5 Which of the statements are true in respect to configuration of payment

program, bank determination area? (3)
a Without ranking order, system will not process the payments
b Bank payment methods combination is must to define ranking order
c Without maintaining the value date in bank selection, system will not
process the payments
d Without ranking order, system will still process the payment
e Without maintaining the value date in bank selection, system will not
process the payment.

6 Which of the following are correct with respect to your G/L account house
bank name? (3)
a
The G/L account house bank name shall be the same as in the bank directory
b The G/L account house bank name need not be the same as the bank’s name
in the bank directory
c The G/L account house bank name is user-definable
d The G/L account house bank name is defined at the chart of account level
e The G/L account house bank name is modifiable at the company code
segment of the chart of accounts

7 In the payment process, automatic options to the users is (1)

a
Select open invoice to the paid or collected, and post payment documents
b Post payment documents and print payment media
c Select open invoices to be paid or collected, post payment documents and
print payment media

8 Which of the statements on payment program are correct ? (2)

a There are four steps in payment process: parameters, proposal program run,
print
b Once the parameters have been specified, the print program is scheduled to
generate the print.
c Every run of the payment program is identified by two fields – run date and
identification
d Sending company code and paying company codes are same always

9 What can we define for the "Bank selection" section, ranking order, in the
payment program configuration. (3)
a Minimum and maximum payment amounts.
b
Which house bank should be considered for payment first, second, third, etc.
c Currencies.
d Bank optimization.
e Bill of exchange account.

10 What can we say about "Bank selection" section, value date field, in the
payment program configuration (2)
a Used with cash management and forecast.
b Used with the Currencies.
c The offset account to the sub ledger posting.
d The number of days until value date plus the posting date.
e Define the permitted currencies for each payment method.

11 What can we define for the "Payment Method / Country" section, in the
payment program configuration ) (3)
a Define payment methods (check, bank transfer, etc.) for each country.
b Define the master record requirements, i.e. address required, for each
payment method.
c Forms for payment advice and EDI.
d Document types to be used for posting and clearing documents for each
payment method.
e Bank optimization.

12 Which of the following are possible reasons that an invoice would not be
paid? (3)
a The invoice has a debit balance
b The payment amount is less than the minimum amount specified for a
payment
c An invalid house bank
d Invoice is not due as per payment terms
e A discount expired

13 Group key assigned to vendor master records control the following

(1)
a It is a combination of up to three fields based on which open invoices
are selected for automatic payment
b Basis for grouping several vendors for balance display
c Basis for classifying vendors for standard reporting
d It is a combination of up to three fields on which open invoices are
selected for manual payment.
Answers
1
a F
b F
c T
d T
e T

2
a F
b F
c F
d T

3
a F
b T
c F
d F

4
a T
b F
c T
d F

5
a T
b T
c F
d F
e T

6
a F
b T
c T
d T
e F

7
a F
b F
c T
8
a T
b F
c T
d F

9
a F
b T
c T
d F
e T

10
a T
b F
c F
d T
e F

11
a T
b T
c F
d T
e F

12
a T
b T
c T
d F
e F

13
a T
b F
c F
d F
Questions
1 Which statements are true? (2)
a In Vendor master record it is possible to activate a check for duplicate invoice
at doc entry
b If you delete a vendor master record, data is automatically deleted on both
chart of account level and co. code level.
c Changes to vendor master records can only be displayed using central
function.
d You can block a vendor to prevent financial transaction postings for one co.
code or for all co. codes.
e Bank master data for vendor can only be created within customizing.

2 Vendor invoices can be entered in (1)

a FI module only
b MM module only
c FI & MM modules
d FI, MM and SD modules

3 What are the four steps of the automatic payment process (Which is true)
(1)
a Select open invoices, approve and/or modify payments, post payment
documents and print payment media.
b Maintain parameters, generate proposal run, start payment run and schedule
print.
c Approve and/or modify payments, generate proposal run, start payment run
and schedule print.
d Maintain parameters, start payment run, post payment documents and
schedule print.
e Select open invoices, maintain parameters, post payment documents and
start payment run.

4 According to which criteria does the payment program determine and select
open items: (2)
a Posting date and baseline date.
b Document date and posting date.
c Baseline date and payment terms.
d Posting date and cash discount periods.
e Posting date and payment terms.

5 What is a sending company code (1)

a
It is a company code that is responsible for processing the outgoing payments.
b It is a company code that passes the responsibility for processing the outgoing
payments to another company code.
c It is a company code that sends only planned data to the receiver company
code.
d It is a company code that receives only actual data from the receiver company
code.
e It is a company code that has many plants.

6 What can we define for the "Paying Company Codes" section, in the
payment program configuration (3)
a Intercompany payment relationships.
b Minimum amounts for incoming and outgoing payments.
c Forms for payment advice and EDI.
d Bill of exchange specifications.
e Tolerances days for payments.

7 Which of the following specifies the accounts and documents that need to
be included in the payment run? (1)
a The parameters
b The variables
c The payment proposal
d The payment programs

8 What is a sending company code (Which is true) (1)

a
It is a company code that is responsible for processing the outgoing payments.
b It is a company code that passes the responsibility for processing the outgoing
payments to another company code.
c It is a company code that sends only planned data to the receiver company
code.
d It is a company code that receives only actual data from the receiver company
code.
e It is a company code that has many plants.

9 Which statement is true? (2)

a In Vendor master record it is possible to activate a check for duplicate invoice
at doc entry
b If you delete a vendor master record, data is automatically deleted on both
chart of account level and co. code level.
c Changes to vendor master records can only be displayed using central
function.
d You can block a vendor to prevent financial transaction postings for one co.
code or for all co. codes.
e Bank master data for vendor can only be created within customizing.

10 Which of the following statements are true with regard to the customizing
setting for banks in the automatic payment run? (3)
a The sequence of the banks for processing outgoing payments is selected
randomly.
b You can only determine one payment method per house bank.
c You can select several payment methods per country.
d You can specify by bank and method the anticipated number of days before
the bank account is debited.
e You can determine the banks to be used for payments according to postal
code.

11 What are the four steps of the automatic payment process (1)
a Select open invoices, approve and/or modify payments, post payment
documents and print payment media.
b Maintain parameters, generate proposal run, start payment run and schedule
print.
c Approve and/or modify payments, generate proposal run, start payment run
and schedule print.
d Maintain parameters, start payment run, post payment documents and
schedule print.
e Select open invoices, maintain parameters, post payment documents and
start payment run.

12 Which of the following statements are true in respect of payment

program configuration. (3)
a Sending company code and paying company codes are same always
b By specifying the vendor/customer, special G/L transaction to be paid,
we can process specified special G/L transactions only
c By activating payment method supplements, we can print and sort
payments
d Without ranking order, system will not process the payments
e Without maintaining the value date in bank selection, system will not
process the payments

13 Which of the following steps are parts of the process of configuring the
payment program? (3)
a All the company codes
b The payment methods/country
c The print checks
d The house banks
e Vendor master data
Answers
1
a
T
b F
c F
d T
e F

2
a F
b F
c T
d F

3
a F
b T
c F
d F
e F

4
a F
b F
c T
d F
e T

5
a F
b T
c F
d F
e F

6
a F
b T
c T
d T
e F

7
a T
b F
c F
d F

8
a F
b T
c F
d F
e F

9
a T
b F
c F
d T
e F

10
a F
b F
c T
d T
e T

11
a F
b T
c F
d F
e F

12
a F
b T
c T
d T
e F

13
a T
b T
c F
d T
e F
Questions
1   What level vendor a/c number assigned? (1)
a   Company code level
b   Client level
c   Chart of a/c level
d Company code level & Chart of a/c level

2 Which parameters do you have to specify if you

want to execute a payment run? (2)
a Payment method
b Currency
c Company code
d Bank account

3
  In
a pay run the dates enter for pay method in document may differ from
master data. How it is resolved by system? (1)
a The pay run stop & system issues an error message.
b Document data over ride master data
c   Master data over ride doc data

4 Which of the following are possible reasons that an invoice would not be
paid? (2)
a The invoice has a debit balance
b An invalid house bank
c A discount expired
d The payment amount is more than the minimum amount specified for a
payment

5
  Imagine the following scenario: A company wants to execute a payment
run on a daily basis and process several company codes at the same time.
If the amount exceeds US$ 1000, the vendors are to be paid by bank
transfer; amounts less than US$ 1000 are to be paid by check. The
customer has two house banks and wants all checks to be processed by
bank A and all bank transfers to be processed by bank B. The bank is to
receive information by data carrier. The customer also requires a payment
proposal that can be checked manually by an accounting clerk. For
performance reasons, the program is not to start until 6 p.m. What settings
are required? (1))
a You store variants for print programs within customizing. Here you can
specify that the information is to be output to a data carrier
b You specify, per house bank, whether payments are to be made by check
only or also by transfer
c You specify the payment method from within the application in the master
record
d
The payment proposal of the automatic payment program can only be
 displayed
e You can precisely schedule the print program from within the application

6 Which of the following statements are true? (2)

a In the Vendor master record it is possible to activate a check for duplicate
invoice at doc entry
b If you delete a vendor master record, data is automatically deleted on both
chart of accounts level and Company code level.
c Changes to vendor master records can only be displayed using central
function.
d You can block a vendor to prevent financial transaction postings for one co.
code or for all Company codes.
e Bank master data for vendor can only be created with in customizing

7 According to which criteria does the payment program determine and

select open items (1):
a Posting date and baseline date
b Document date and posting date
c Baseline date and payment terms
d Posting date and cash discount periods
e Posting date and payment terms

8 Which of the following statements are true with regard to the customizing
setting for banks for the automatic payment run? (3)
a The sequence of the banks for processing outgoing payments is selected
randomly
b You can only determine one payment method per house bank
c You can select several payment methods per country
d You can specify by bank, and payment method, the anticipated number of
days before the bank account is debited
e You can determine the banks to be used for payments according to postal
codes

9 State which are True or False for Payment Media Workbech (PMW)(3)
a PMW is used to create payment media
b You have to define PMW format at company code level
c Payments are sorted according to PMW formats
d Payment groups are created according to PMW formats
e You can control program during the execution for sorting

10 What can we say about "Bank selection" section, charges, in the payment
program configuration (3)
a Assess additional bank charges for incoming and outgoing payments.
b Used with bills of exchange.
c Additional automatic posting configuration.
d The number of days until value date plus the posting date.
e Define the permitted currencies for each payment method.

11 Which of the following options is correct? (2)

a Invoices that match the specified payment parameters but, for some reason,
cannot be paid are listed in the exception list.
b In the proposal run, payments and related postings such as those for tax, tax
adjustments, exchange rate differences or cash discount are posted
automatically.
c The payment block can be in: Payment term, Vendor/Customer master data
and Invoices.
d DME means Document Medium Exchange.

12 Which of the following specifies the accounts and documents that need to
be included in the payment run? (1)
a The parameters
b The payment proposal
c The variables
d The payment programs
e

13 Which of the following statements are true for Payment Media

Workbench? (2)
a In the Payment Medium Workbench, the system creates payment advice
notes using the new program RFFOAVIS_FPAYM.
b You cannot convert a payment method individually to the PMW payment
media formats. "
c The granularity is specified in the definition of the payment medium format
and determines how the payment media is output separately in payment
groups.
d When using the Payment Medium Workbench (PMW), the note to payee
cannoot be freely defined
Answers
1
a F
b T
c F
d F

2
a T
b F
c T
d F

3
a F
b T
c F

4
a T
b T
c F
d F

5
a F
b T
c F
d F
e F

6
a T
b F
c F
d T
e F

7
a F
b F
c T
d F
e F
8
a F
b F
c T
d T
e T

9
a T
b F
c T
d F
e T

10
a T
b T
c T
d F
e F

11
a T
b F
c T
d F

12
a
b T
c F
d F
e F

13
a T
b F
c T
d F