4 Accounts Payables

4.1 Payment Run - Overview

 The SAP payment program lets you automatically to select open invoices to be paid or
collected, to post payment document; print payment media and use data medium
exchange (DME) or generate electronic data interchange (EDI)

 The payment program in SAP is flexible for users to define those payment features that
vary from country to country such as payment methods, payment terms or data carrier
specifications.

 The payment process consists 4 steps: Setting parameters viz., payment methods;
generating proposal, scheduling payment run and printing the payment media,

4.2 Running the Payment Program

 Every payment program is identified by 2 fields: run date and identification. All
documents that were entered up to the Documents entered to date are included in the
payment run. The identification field is used to differentiate between program runs that
have the same run date.

All documents that were entered up to the Docs entered up to date are included in the payment run.
The posting date is the date when the general ledger is updated with the postings. This date is defaulted from
the run date on the previous screen.
If multiple company codes are listed, they have to be separated by commas. If you want to specify
a range of company codes, you have to enter the first and last company code in the range in
parentheses.

 Multiple companies can be entered in the payment run provided they belong to same
country. Multiple payment methods can be entered and the method entered first has the
priority.

 Once the proposal run is completed the system generates two reports:

The proposal list that contains business partners, the amount to be paid. Cash discount and document
number can appear at the header as well as in line item also.

The exception list: that contains items that are blocked for payments along with the items for which system
could not determine the valid payment method or bank data
 You can edit the proposal list. You can edit payment block, cash discount etc several
times before saving. Edited list can be analyzed. Users can assign accounting clerk to
customer/vendor by entering the clerk’s key in the master data.

 Once the proposal list is saved, the documents included in the list cannot be altered in the
next run even if the payments are not done.

 If the users select the additional log, the list shows why the invoice cannot be paid which
could be due to: invoice is blocked; invalid data in the master record; invalid payment
method; invalid house bank; payment amount is less than minimum amount; not enough
money in the house bank; debit balance. There are several ways to configure payment
block: During invoice verification in MM; AP invoice in FI; in master record of vendor
etc.

There are several ways to configure a payment block:

If a problem arises during the invoice verification process, the invoice is usually blocked for payment. You
can configure this type of block in such a way that the block can only be removed during the invoice
verification process. If there is a reason why a vendor should not be paid, you can create a payment block in
the master record. The block created in the master record prevents any invoices from the vendor from being
paid. You can also configure the block so that it has to be removed manually in the master data record
before a payment can be processed.
When an AP invoice is entered, an invoice may be blocked for payment. The type of payment block
determines whether it can be removed during the payment proposal.
You can define additional payment blocks in the system. Users can also specify whether the payment block
can be removed when payments are processed

 After the payment run is created, it can be edited by accounting clerks. Users can assign
an accounting clerk to a customer/vendor by entering the clerk's key in the
customer/vendor master data. When editing the payment proposal, you can enter the key
of a specific clerk to show only the customer/vendor payments that are assigned to the
clerk

 Once the payment proposal has been edited and saved, the payment run uses the changes
as a basis for the actual payments. Up to this point, no postings have occurred. The
documents included in this payment run have been "locked" against any other postings,
that is, an invoice eligible to be paid in the current payment run is blocked for manual
payment or payment or in a different payment run. In this step, payment documents are
created, open items are cleared, and the general and sub-ledgers are posted to. The
payment run is also used to supply the data to print program or to EDI

 The payment program automatically post payments and related postings (viz. tax,
adjustment, exchange rate difference). However, some countries require the payment
postings are not done before actual settlement. In which case payment order is generated
which is cleared upon when actual payment appears on bank statement.

 It is advisable to use bank sub accounts for incoming and outgoing payments which can
be reconciled at any time with bank G/L account at any time. The payment method has to
 be assigned to bank sub-account. You can differentiate bank sub-accounts and house bank
and are managed as open items.

 If there is check cashing time in master data, it will have priority over value date set in
the automatic payment program.

 If payments are made for individual business areas, the bank posting is made for the
business area to which the paid items belong. If payments are not made for specific
business area, you can specify the business area for the bank postings. In all other cases,
the postings to the bank subaccounts are carried out without reference to business areas.

 The document type for payment documents is defined in the country specific
specification for payment methods. For cross company code payments you can
enter further document type that is used for clearing and both must have internal
number assignment.

 Print run starts with print program (which is not assigned to payment method but it is
assigned to payment method for each country). You can give any number of variant out of
several variant at a time for print programs. You can leave the program run date and
identification number blank in the variant which is dynamically filled.

 In the payment method for each country configuration screen, you can define the print
program for each payment method. You can assign payment medium form to each
company code only. Additionally you can assign to each payment method for each
company code

 During the print run, you can transfer the DME payment data to DME
administration.DME file can be stored in temporary sequential file and also on PC file.

 The first print program run by payment program is the print program of EDI. Payment
advice can also be sent either by e-mail or EDI

 Relevant account remains blocked even if the payment proposal is then deleted. Blocked
accounts can be released manually.
4.3 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 relevant account remains blocked even if the payment
proposal is then deleted. Blocked accounts can be released manually.

4.4 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

1 Which of the following about vendor transaction is correct?

A Vendor down payment is shown on balance sheet under normal
reconciliation account for payables. F
B Special G/L transaction is one, which is included in special purpose
ledger under coding block in G/L account. F
C A vendor down payment request cannot be included in payment
program to produce down payment F
D A vendor down payment request is a noted item. T
E A vendor down payment is cleared after final invoice is received from
vendor. T

2 Vendor invoices can be entered in

A FI module only F
B MM module only F
C FI & MM modules T
D FI, MM and SD modules F

3 Which of the following statements are True for Payments ?

A A payment method can be used only if it is entered in the account
master record T
B All the company codes in the payment run parameters must be in the
same country F
C The payment proposal can be edited, deleted and recreated as often as
necessary T
D The exception list is part of the payment proposal T

4 In the payment process, automatic option to the users is

A
Select open invoices to be paid or collected/post payment document T
B
Post payment documents/print print media T
C
Select open invoices to be paid/collected T
D Post payment document F
E Print media F

5 Which of these statements on payment program are correct?

A There are four steps in payment process i.e., parameters, proposal,
program, print media T
B Every run of the payment program is identified by two fields: Run date
& Identification T
C All company codes in payment run parameters can be of different
countries F
D A payment method can only be used if it is entered in the account
master record F
5 Which of the following statements are true?
A The run date is recommended to be the actual date when the program
is executed T
B Sending company code and paying company code are same always F
C By activating payment method supplement, we can print and sort
payments T

6 Which of these statements on payment program are correct?

A The payment proposal can be edited, deleted and recreated as often as
desired T
B SAP cannot automate the payment method entry into the vendor
invoice screen F
C Partial payment creates another entry without any link to the original
entry T
D Payment to anybody by passing a G/L entry without AP/AR is a standard
functionality of SAP. T

7 State true or false

A All company codes in the payment run parameters must be in the same
country T
B A payment method can only be used if it is entered in the account
master record F
C The payment proposal can only be edited, deleted and recreated as
often as desired T
D The exception list is a part of the payment proposal T

8 When you carry out automatic payment, bank through which

payment is effected is based on
A Ranking order of house banks F
B
House banks maintained for specific business areas F
C House banks entered in the parameters of the run F
D Ranking order and available balance in the accounts T

9
State which are True or false for debit balance check after payment proposal
A The debit balance check offsets all the due debit items without an
incoming payment method against the proposed paymentsi T
B If the resulting debit or credit balance is less than minimum payment
amount the payments are added to the exception list T
C The relevent accounts become free of block if the the payment
proposal is deleted F
D

Blocked accounts are released automatically F

10 The automatic payment program

A Generates payment orders only F
B Generates payment orders and accounting transactions T
C Generates accounting transactions only F
D
None of the above F

11 Creation of duplicate accounts in AP is prevented by using

A Match code before creating the new account T
B Sensitive dual control F
C Switching on automatic duplication check T
D By giving authority to one user for creation F

12 Which of these statements on payment program are correct?

A
The payment proposal can be edited, deleted and recreated as often as
desired T

B
SAP cannot automate the payment method entry into the vendor
invoice screen F

C
Partial payment creates another entry without any link to the original
entry T

D
Payment to anybody by passing a G/L entry without AP/AR is a standard
functionality of SAP. T

When you carry out automatic payment, bank through which

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payment is effected is based on
A Ranking order of house banks F
B House banks maintained for specific business areas F
C House banks entered in the parameters of the run F
D Ranking order and available balance in the accounts T

According to which criteria does the payment program determine and select
14
open items:
A Posting date and baseline date. F

B
Document date and posting date. F
C Baseline date and payment terms. T
D Posting date and cash discount periods. F
E Posting date and payment terms. T
 Which of the following statements are true with regard to the customizing
15
setting for banks in the automatic payment run?
A The sequence of the banks for processing outgoing payments is selected
randomly. F
B You can only determine one payment method per house bank. F
C You can select several payment methods per country. T
You can specify by bank and method the anticipated number of days before the
D
bank account is debited. T
E You can determine the banks to be used for payments according to postal code. T

When you carry out automatic payment, bank through which

16
payment is effected is based on
A Ranking order of house banks F
B House banks maintained for specific business areas F
C House banks entered in the parameters of the run F
D Ranking order and available balance in the accounts T

17 State which are True or false for debit balance check after payment proposal
The debit balance check offsets all the due debit items without an
A
incoming payment method against the proposed paymentsi T
If the resulting debit or credit balance is less than minimum payment
B
amount the payments are added to the exception list T
The relevent accounts become free of block if the the payment
C
proposal is deleted F
D
Blocked accounts are released automatically F

18 State which are True or False for Payment Media Workbech (PMW)
A PMW is used to create payment media T
B You have to define PMW format at company code level F
C Payments are sorted according to PMW formats T
D Payment groups are created according to PMW formats F
E You can control program during the execution for sorting T

19 Which of the folowing statements for House Bank are True?

A Your house bank number cannot be set to be defaulted from house bank key T
B Every house bank needs to have at least one account id T
Bank G/L accounts are assigned to house banks, and all accounts under the
C
house bank have the same G/L account F
D The relationship between house bank and account id is one to one F

20 In the payment process, automatic options to the users are

Select open invoice to the paid or collected, and post payment
A
documents F
B
Post payment documents and print payment media F
C Select open invoices to be paid or collected, post payment documents T
 and print payment media

21 Which of the statements on payment program are correct ?

A
There are four steps in payment process: parameters, proposal
program run, print T
Once the parameters have been specified, the print program is
B
scheduled to generate the print. F
Every run of the payment program is identified by two fields – run date
C
and identification T