SAP Automatic Payment

Program- Configuring the

Payment methods in Company
Code
Just as you cannot use a payment method in a country without the payment method in
country settings, you cannot also use a payment method in your company code without
the payment methods in company code settings in place.
In this post we will discuss the payment methods in company code settings as a
continuation to the series on SAPpayment methods configuration.
Pre-requisites:
Before you start configuring payment methods for your company code, the company
code must be configured to be able to do payment transactions. Therefore we will first
briefly discuss company code settings in SAP Automatic Payment Program through the
following steps:
1) Set Up All Company Codes for Payment Transactions
In this configuration steps, you make settings for all company codes to be involved in
payment transactions.
To do so, follow the menu path below:
IMG Financial Accounting (New) Accounts Receivable and Accounts
Payable Business Transactions Outgoing Payments Automatic Outgoing
Payments Payment Method/Bank Selection for Payment Program Set Up All
Company Codes for Payment Transactions

Enter your company code and other details as explained below:

a) Paying Company Code
If your company code is going to be a paying company code (meaning it will be involved
in payment transactions), enter it in the paying company code field.
b) Tolerance days for payable
If applicable, enter here the number of days by which the cash discount periods and
period for the due date may be exceeded. In determining the due date the system add
the number you entered here.
c) Special GL Transactions to be paid
Enter here the Vendors (and Customers) special GL transactions (Down payment
requests, down payments etc.) to be paid under this company code.
For more details on this refer to my earlier post http://sapgurus.com/cross-company-

code-payment-explained/
2) Set Up Paying Company Codes for Payment Transactions
Here you make detail settings for the company code you defined as a paying company
code in 1) above.
Follow the menu path below to Set up Paying Company Codes for Payment
Transactions:
IMG Financial Accounting (New) Accounts Receivable and Accounts
Payable Business Transactions Outgoing Payments Automatic Outgoing
Payments Payment Method/Bank Selection for Payment Program Set Up
Paying Company Codes for Payment Transactions

a ) Minimum Amount for Incoming Payme

tEnter the minimum incoming payment amount here. This is the amount above which a
n incoming payment can be generated by the syste
b ) Minimum Amount for Outgoing Payme
tIf you enter the minimum outgoing payment amount then the payment program run
s and the outgoing payment is created if the amount of the open item in equal or mor
e than the amount specifie
c ) No Exchange Rate Differenc
sSet this indicator if you do not want the system to post any exchange rate difference
s from the payment program run. If the indicator is not set, the system automaticall
y calculates the exchange difference between the open item date and the date of th
e payment and posts this in your book
d ) No Exchange Rate Differences (Partial Payment
)Flag this indicator if you do not want the system to post any exchange rate difference
s from the payment program run for partial payments (F-59
e ) Bill of exchange Paymen
sSet this indicator if you wish to use bills of exchange payment procedure in the payin
g company cod
f ) Specification for SEPA Paymen
sSEPA is the Single Euro Payments Area. If you are in a SEPA Country, you maintain t
e specification for SEPA Payments by entering the Creditor Identification number her
3 ) Payment Methods in Company Cod
We can now discuss the payment methods in company code setting
.The Payment Methods in Company Codes configuration can be done through th
e following menu pat
:IMG Financial Accounting (New) Accounts Receivable and Account
s Payable Business Transactions Outgoing Payments Automatic Outgoin
g Payments Payment Method/Bank Selection for Payment Program Set U
p Payment Methods per Company Code for Payment Transactio
s
Or use the famous FBZP transaction code

What we will basically be doing under this configuration activity, is specify which
payment methods can be used per company code and also to set the conditions under
which a payment method should be used.
In doing so we will go through the following tabs:
4) Amount Limits Tab
Under this tab you specify the amount limits for the payment method under your
company code. Meaning that for the payment program to select open items with this
payment method and under the affected company code, the open item amount should
be within the range define here.
a) Minimum Amount
If a minimum amount is defined for a payment method in a particular company code, it
means the payment program will only select open items if the amount does not fall
below the amount define here. Meaning that amount of the open item should be equal
or more than the one defined here.
Note: An exception to this is where a payment method is assigned at the invoice level,
in this case the system overrides the settings done here and the minimum amount rule
will not apply to such invoices.
b) Maximum Amount
If a maximum amount is defined for a payment method in a particular company code, it
means the payment program will only select open items if the amount does not exceed
the amount define here. Meaning that the amount of the open item should be less than
or equal the one defined here.
Just like in the a) above, an exception to this is where a payment method is assigned at
the invoice level, in this case the system overrides the settings done here and the
miaximum amount rule will not apply to such invoices.
5) Grouping of Items Tab
Under this tab you specify how for a particular company code, the payment program
should group the open items to pay using the defined payment method.
a) Single payment for marked items
If this indicator is checked, it means the payment program pays open items individually,
when the payment method is explicitly specified in the invoice. However, if the payment
method is not specified explicitly in the invoice, but is instead selected by the payment
program, several items can be paid together.
b) Payment per due day
If this indicator is checked, it means the payment program groups open items according
to due date. Meaning that open items sharing the same due dates are paid together in
single payment run.
6) Foreign Payments/ Foreign Currency Payment Tab

Under this Tab, you define whether the payment method being configured will be
allowed in foreign payment transactions.
a) Foreign Business Partners Allowed
If this indicator is flagged, it means this payment method could be used to make
payments to Vendors overseas (foreign vendors). Foreign Vendors are by definition
vendors whose assigned Country in the master data is different from the country
assigned to your company code.
b) Foreign Currency Allowed
If this indicator is selected, it means this payment method could be used to make
payments in foreign currencies. If for any reason you want to allow only certain
currencies for your payments, you maintain this settings in payment methods in
country configuration (refer to para 6 of my post on payment methods in country).
Payment can be made in any currency if no such restrictions exists. Foreign currency by
definition is any currency different from your company code currency.
c) Customer/Vendor Bank Abroad Allowed?
If the indicator Customer/Vendor Bank Abroad Allowed? is selected, it means this
payment method can select foreign bank accounts from the Vendor master data for
payments.
7) Bank Selection Control Tab
This tab gives you the option to optimize your payment process (using your chosen
payment method) by grouping your payments according to predefined criteria (by Bank
and Postal code).
a) No Optimization
When this indicator is flagged, it means that the payment program, when using this
payment method, will not carry our any optimization during selection of your house bank
and bank of business partner (vendor/customer).
b) Optimize by Bank Group
When this indicator is flagged, it means you can optimize your payment process by
grouping your payments, (using Bank as the grouping criteria). It means you wish the
system to optimize the payment process by selecting the optimal pair of your Bank
Group and the customers/vendors bank Group. In this way the payment program
checks whether your bank group belongs to the same bank group as your payees
(vendors) bank group.
c) Optimize by Postal code
When this indicator is checked it means that the payment program should pay the item
from your house bank which is geographically nearest to the city of residence of the
customer/vendor. This you can achieve by using the postal code as your grouping
criteria.
8) Forms

Form specifies the format of the output of the payment medium generated by the
payment program using a particular payment method.
a) Creating a payment form
The creation of forms are usually done by the technical consultants.
Follow the menu path below to create forms:
IMG Financial Accounting Global Settings (New) Accounts Receivable and
Accounts Payable Business Transactions Outgoing Payments Automatic
Outgoing Payments Payment Media Define Payment Forms
b) Assign payment forms for payment method in company code
Make the following settings to assign payment forms for payment method in company
code
IMG Financial Accounting Global Settings (New) Accounts Receivable and
Accounts Payable Business Transactions Outgoing Payments Automatic
Outgoing Payments Payment Media Make Settings for Classic Payment
Medium Programs Assign Payment Forms for Payment Method in Company
Code

Assign the form to your company code and save.

To assign form to your payment method, double click on Allocate forms to payment
method in company code.

c) Drawer on the Form Tab

Specify the name and address of your company as the issuer printed on the form, or
output of the payment medium. The details are different for the individual forms or
formats.
9) Sorting of the Tab
In this tab you define the sort variants for payment medium forms. The standard system
sorting takes place according to currency and the payees bank details, if you do not
make your own settings for sorting.
a) Correspondence Sorting
If you want to make use of this functionality, you define a sort variant which you attach
here. This helps to determine how the correspondence in payment transactions
(payment advice notes, checks etc.) is sorted by using the defined sort variant. For
example you can define that your payment are sorted by name or postal code.

Note: to configure the Sort Variant follow the following menu path:
IMG Financial Accounting (New) Accounts Receivable and Accounts
Payable Business Transactions Outgoing Payments Automatic Outgoing
Payments Payment Media Sort Variants Payment Media: Define Sort
Variants
b) Line Items Sorting
The line item sort variant determines how line items on payment media and payment
advice notes are sorted. For example you can specify that the line items on you
payment advice are sorted by reference number, date and so on.

Use the following menu path to configure Sort Variants for Line Items:
IMG Financial Accounting (New) Accounts Receivable and Accounts
Payable Business Transactions Outgoing Payments Automatic Outgoing
Payments Payment Media Sort Variants Payment Media: Define Sort
Variants for Line Items
10) Payment Advice Note Control Tab
Use these fields (restricted to, none and as many as required options) to specify how
many lines are to be used for the note payee on the payment form.
With these settings the configuration of payment methods in company code is
completed.