CashFlowManagement BA

Product Documentation PUBLIC
SAP Business ByDesign February 2016
Cash Flow Management

Table Of Contents
1 Cash Flow Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2 Business Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.1 Point-of-Sale Transaction Processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2.2 Supplier Remittance Advices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.3 Customer Remittance Advices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
2.4 Electronic Submission of Outgoing Remittance Advices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
2.5 Determination of Payment Method / Reservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
2.6 Creating User-Defined Payment File Formats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
2.7 Incoming Payments by SEPA Direct Debit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
2.8 Foreign Currency Remeasurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
2.9 Reclassification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
2.10 Canceling a Supplier Invoice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
2.11 Canceling a Customer Invoice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
3 Payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
3.1 Business Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Open Items Payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Supplier Account Monitor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Cash Discounts for Payables in Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Down Payments Made in Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
Chain Liability — Netherlands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
3.2 Views . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Quick Guide for Suppliers (Payables) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Quick Guide for Automatic Payments (Payables) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Quick Guide for Payment Clearing (Payables) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Quick Guide for Payment Runs (Payables) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Quick Guide for Balance Confirmation Runs (Payables) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Quick Guide for Foreign Currency Remeasurement Runs (Payables) . . . . . . . . . . . . . . . . . . . . . 45
Reclassification of Payables Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
3.3 Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Aging List for Payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Forecast List for Payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Details to Items of Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
Open Item List – Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Payment Statistics - Suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
Payment Statistics – Cash Discount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Supplier List . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

Table Of Contents P U B L I C • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 3
4 Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Open Items Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Customer Account Monitor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
Automatic Dunning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Cash Discounts for Receivables in Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Down Payments Received in Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Refund of Payments Received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
Pledging Agreements — Austria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
4.2 Views . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
Quick Guide for Customers (Receivables) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72
Quick Guide for Automatic Payments (Receivables) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Quick Guide for Payment Clearing (Receivables) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
Quick Guide for Dunning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
Quick Guide for Dunning Runs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76
Quick Guide for Payment Runs (Receivables) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Quick Guide for Balance Confirmation Runs (Receivables) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
Quick Guide for Foreign Currency Remeasurement Runs (Receivables) . . . . . . . . . . . . . . . . . . . 78
Reclassification of Receivables Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
Quick Guide for Central Bank Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
4.3 Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Aging List for Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85
Forecast List for Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Dunning History - Customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
Dunning History - Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
Dunning Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
Details to Items of Customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
Details to Open Items of Customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
Customer List . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
Account Financial Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
SEPA Mandate List . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Accounts Receivable – Pledging of Open Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
5 Payment Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
Payment Allocation and Clearing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
Credit Card Chargebacks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
Period-End Activity for External Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
Customer Payments by External Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
Customer Payments by Credit Card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
Postings for Bill of Exchange Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
Cash Outpayments - Switzerland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
Foreign Payment Format . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
5.2 Views . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119

4 © 2016 SAP SE or an SAP affiliate company. All rights reserved. • P U B L I C Table Of Contents
Payment Monitor Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
Quick Guide for Payment Allocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
5.2.2 Payment Allocation and Clearing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
Petty Cash Quick Guide (Payment Management) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
Check Deposits Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
Lockbox Batches Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131
Quick Guide for Bill of Exchange Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
Quick Guide for Bill of Exchange Cashings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136
Remittance Advices Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
Clearing House Statements Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
Payment Media Runs Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
Quick Guide for Payment Deposit Runs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142
Quick Guide for Credit Card Settlement Runs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144
Foreign Currency Remeasurement for Cash Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
Quick Guide for Direct Debit Rejection Runs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
5.3 Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
Payment Statistics - Customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
Checkbook Register . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
6 Liquidity Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153

Cash Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
Bank Directory and Bank Directory Updates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154
Bank Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
Bank Transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158
Bank Payment Advice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
Check Lots and Check Numbers for Outgoing Checks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
Banks and Bank Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161
Monitoring Payment Allocation Processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
Clearing Houses and Clearing House Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
Electronic Bank Statement File Formats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
Electronic Payment Formats . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
Liquidity Check . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
Liquidity Forecast . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170
Bank Directory Upload for Six Interbank Clearing – Switzerland . . . . . . . . . . . . . . . . . . . . . . . . 173
Forecast Planning Item . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
ISR Payments - Switzerland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174
Payment Processing Using ISR — Switzerland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
6.2 Views . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
Quick Guide for Master Data (Liquidity Management) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
Cash Position Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 180
File Management Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 181
6.2.3 Bank Payment Advice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182
Bank Statements Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185
Payment Monitor Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186
Bank Payment Advices Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191

Quick Guide for Bank Transaction Status Notifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192
Liquidity Forecasts Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194
6.3 Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195
Bank Statement Item Details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195
Cash Position by Payment Method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195
Cash Position by Transaction Source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198
Liquidity Forecast by Liquidity Level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200
Liquidity Forecast by Payment Method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 202
Liquidity Forecast by Transaction Currency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
Liquidity Forecast by Transaction Source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
7 Tax Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211

Tax Management Work Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211
Tax Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211
Tax Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219
Tax Transactions and Tax Postings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220
Tax Determination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234
Tax Determination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234
Access to Tax Data by Tax Authorities (GDPdU) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257
7.2 Views . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 258
Tax Authorities Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 258
Sales and Use Tax Entries Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259
VAT Entries Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260
Withholding Tax Base Amount Entries Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261
Sales and Use Tax Returns Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262
VAT Returns Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264
EC Sales Lists Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265
Withholding Tax Returns Quick Guide — US . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266
Tax Payments Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267
Sales and Use Tax Return Runs Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271
VAT Return Runs Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273
EC Sales List Runs Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 274
Withholding Tax Return Runs Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 276
...................................................................... 277
Quick Guide for Service/Excise Tax Returns - India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277
Tax Adjustments Quick Guide – India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277
Quick Guide for Other Tax Returns – India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278
Quick Guide for Other Tax Return Runs – India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278
Quick Guide for A-29 Reports – Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278
...................................................................... 278
Quick Guide for Service/Excise Tax Return Runs – India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279
...................................................................... 279
7.3 Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279
Open VAT / Sales Tax Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279
Reported VAT / Sales Tax Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280

6 © 2016 SAP SE or an SAP affiliate company. All rights reserved. • P U B L I C Table Of Contents
All VAT / Sales Tax Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281
All VAT / Sales Tax Items with Journal Entry Details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 282
VAT / Sales Tax Calculation Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283
Withholding Tax Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 284
8 Travel and Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285

Travel Advances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285
Review and Approval of Expense Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287
Rule of 183 - Austria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288
Rule of 5/5/15 - Austria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289
Nonmonetary Compensation - Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289
8.2 Views . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 291
Expense Arrangements Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 291
Expense Reports Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 292
Quick Guide for Expense Settlement Recalculation Runs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293
Mileage Accumulation Quick Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294
Quick Guide for Day Accumulation - Austria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 295
8.3 Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296
Expense Reports By Cost Object . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 296
Expense Reports – Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 298
Expense Reports – Receipts and Reimbursements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299
Expense Reports - Taxable and Tax-Exempt Amounts for Payroll . . . . . . . . . . . . . . . . . . . . . . . 300
Expense Reports – Input VAT Refund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 302
Expense Reports – Itinerary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303
Expense Reports - Overview of Trips to Communities in Austria . . . . . . . . . . . . . . . . . . . . . . . . 304
Expense Reports - Taxable and Tax-Exempt Amounts for Austria . . . . . . . . . . . . . . . . . . . . . . . 305

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.

8 © 2016 SAP SE or an SAP affiliate company. All rights reserved. • P U B L I C Cash Flow Management
2 Business Background
2.1 Point-of-Sale Transaction Processing
Overview
The Point-of-Sale Transactions view enables you to process sales transactions and cash transactions, such as, cash
transfer or cash balancing transactions, from an external system. A point-of-sale transaction 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.
If a sales transaction or cash transaction is complete and consistent, it is automatically processed by the system
and forwarded to Financial Management and Inventory Management. However, should the sales transaction or cash
transaction be incomplete or inconsistent, you can use the Sales Transactions 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 and Inventory 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 Sales Summaries.
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 point of sale, 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.
Prerequisites
Configuration settings are usually performed by an administrator. If you do not have the required
authorization, contact your administrator.
● 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.

Business Background P U B L I C • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 9
● 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.
○ Material data (for sales of inventory-managed articles)
Material 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
○ Site (for sales of inventory-managed articles)
○ Logistics Area (for sales of inventory-managed articles)
○ 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 and Inventory
Management.
● If the sales transaction data is consistent, it is automatically released to Financial Management and
Inventory Management.
Scenario 2: Cash Transactions — Cash Transfer

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.
2. The external system starts a batch upload and sends the data to Point-of-Sale Transaction Processing.

10 © 2016 SAP SE or an SAP affiliate company. All rights reserved. • P U B L I C Business Background
● If the cash transfer transaction data is inconsistent, the 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 transfer transaction data is consistent, it is automatically released to Financial Management.
Scenario 3: Cash Transactions — Cash Balancing

1. The cashier counts the amount of cash in a petty cash and enters it in the point-of-sale device. Usually this
happens regularly at the end of a certain time period, for example, a day.
2. The external system calculates the difference between the counted amount and the expected amount and
transfers it to Point-of-Sale Transaction Processing.
The absolute amounts (counted and expected) are not transferred to Point-of-Sale Transaction
Processing.

● If the cash balancing transaction data is inconsistent, the 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 balancing transaction data is consistent, it is automatically released to Financial Management.
See Also
Point-of-Sale Transactions Quick Guide
Point-of-Sale Transaction Processing in Financial Management
2.2 Supplier Remittance Advices
Overview
A remittance advice is a message exchanged between payer and payee that automates the clearing of open items
by specifying when and how much of which invoices will be paid. Both the buyer and the seller can send the message.
Outgoing remittance advice items contain:
● Amounts (payment amount and gross amount) and currency
● Invoice number for the open item
Incoming remittance advice items contain:

● Entries for the open item (such as the invoice number)
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, which 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 indicate which open invoices the payment clears.
You edit remittance advices in the Payment Management work center.
The following applies to the remittance advice business process:
● 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.
Remittance advices are printed by the payment run if the relevant field was selected in the payment media run and
if certain requirements have been met (see Creating Supplier Remittance Advices below).
Incoming remittance advices are assigned to payments by default. Incoming remittance advices that are due in the
future are automatically included in the liquidity forecast. To view the liquidity forecast, in the Liquidity
Management work center, open the Cash Position view.
Prerequisites
You have made the following settings in the Business Configuration work center:
Scoping
Under Questions Cash Flow Management , you have made the basic settings for your payment processes.
Fine-Tuning
In the Fine-Tune phase, you have made the following settings for cash flow management:
● 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.
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 using an electronic interface if you have made the appropriate settings
in configuration and for master data. For more information, see Electronic Submission of Outgoing Remittance
Advices [page 16].
Sending a Supplier Remittance Advice by E-Mail

You can send outgoing remittance advices by e-mail if you have made the appropriate settings in configuration and
entered the appropriate master data, including an e-mail address for the supplier in question.
If you want to send encrypted e-mail, you must additionally ensure that a valid certificate has been assigned to the
supplier’s e-mail address.
You can also sign e-mails.
If you want to use encryption and signatures, you must activate the Payment Management – Remittance Advice
scenario in configuration. For more information on this task, see Configuration: E-Mail Encryption and Signature
Check.
For more general information, see E-Mail Security.
Generating a Supplier Remittance Advice

To print supplier remittance advices or submit them using an electronic interface or e-mail, 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.
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 Customer Remittance Advices
Overview
A remittance advice is a message exchanged between payer and payee that automates the clearing of open items
by specifying when and how much of which invoices will be paid. Both the buyer and the seller can send the message.
Outgoing remittance advice items contain:
● Invoice number for the open item
Incoming remittance advice items contain:

● Amounts (payment amount and gross amount)
● Entries for the open item (such as the invoice number)
Depending on company policy, customers send a remittance advice for each payment or only for payments that
combine multiple invoices. Since you know which open items the customer is clearing with the payment, it is easier
for you, as 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 indicate which open items the payment clears.
You edit remittance advices in the Payment Management work center.
The following applies to the remittance advice business process:
● 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.
Outgoing remittance advices are printed by the payment media run, if the relevant field was selected in the payment
media run and if certain requirements have been met (see Creating Customer Remittance Advices below).
Incoming remittance advices are assigned to payments by default. Incoming remittance advices that are due in the
future are automatically included in the liquidity forecast. To view the liquidity forecast, in the Liquidity
Management work center, open the Liquidity Forecasts view.
Prerequisites
You have made the following settings in the Business Configuration work center:
Scoping
Fine-Tuning
In the Fine-Tune phase, you have made the following settings for cash flow management:
● 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)
Specify how long the advice data should be stored.
○ 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 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

Automatic allocation of received remittance advices to open invoices and related incoming payments is supported.
After you have transferred remittance advices to the system, an automatic allocation to the related incoming
payments is executed 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 postings. A proposal for the clearing of the items is
created automatically based on the advised payment. When payment is received, it will be assigned to the advice
and complete the proposed clearing.
If differences are detected when the advice is allocated to incoming payments that affect the invoice amount or
invoice date, these differences are displayed along with remittance advices that cannot be assigned to any invoice.
You can see a list of remittance advices in the Payment Management work center.
Creating Customer Remittance Advices

If multiple invoices of a customer are debited by direct debit, a remittance advice is created automatically by 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. Remittance
advices sent to customers are not saved. However, you can print advices as often as you want.
You can create remittance advices for each payment or 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.
2. Select the customer and click Edit → Financial Data.
3. Under Advice Control, select Remittance Advice Required.
You must make these settings for each customer individually.
● For payments where the predefined space for the note to payee is insufficient, 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 and click Create Remittance Advice .

3. 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 required settings in configuration
and the master data. For more information, see Electronic Submission of Outgoing Remittance Advices
[page 16].
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. Click New → Payment Media Run.
3. Fill the relevant fields on the New Payment Media Run screen and select the Including Payment Advice
checkbox. Save your entries.
4. Click 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, click Schedule .
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

1. In the Payment Management work center, open the Remittance Advices view.
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).
2.4 Electronic Submission of Outgoing Remittance Advices
You can send outgoing remittance advices to your customers or suppliers through an electronic interface if the
required settings have been made on both the sender and receiver side.
Prerequisites
Business Configuration
The use of outgoing bank transfers and checks 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 outgoing bank transfers and checks.
Master Data
Both the sending and the receiving company of the remittance 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)
To enter a standard ID, go to the Organizational Management work center and choose Common Tasks Edit Org
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.
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 Remittance Advice Sender:
● On the Sender Side:
Go 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. Inform the receiver of this number.
● On the Receiver Side:
Go 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.
2. Data Retrieval and Entry of the D-U-N-S Number for Remittance Advice Receiver:
● On the Receiver Side:
Go 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. Inform the sender about this number.
● On the Sender Side:
Go 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-U-N-
S number that you received from the sender.
Process Flow
For your company to be able to send remittance 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 Remittance Advices
The function for submitting remittance advices electronically needs to be activated on both the sender and receiver
side.
Setting the Communication Arrangement on the Receiver Side
1. Go to the Application and User Management work center and choose Input and Output
Management Communication Arrangements . Choose New .
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. A URL is generated and shown under Technical Settings. Inform the sender of this URL.
4. Save.
The configured interface now enables you to receive remittance advices in electronic form, in which you are notified
electronically about payment requests.
Setting the Communication Arrangement on the Sender Side
1. Go to the Application and User Management work center and choose Input and Output
Management Communication Arrangements . Choose New .
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 remittance advice provided
you with.
In the Security section in the Authentication field, choose the value SSL Client Certificate. In the User Name
field, choose 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.
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 remittance advices
to your suppliers electronically with notification of your payment requests.
If the recipient of the remittance advice does not use this solution but does use a Web service, the recipient
can inform the sender of the URL provided by the Web service. The remittance advice can then be submitted
using that URL.

2.5 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 this way 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.
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 quickest and most favorable 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
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 must be country-
specific 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, you can specify this directly in the master record.
You can also specify multiple payment methods in the master record. The system selects one during the payment
run, according to the payment method specified in the document or one of the payment methods specified in
configuration during bank prioritization.

To specify payment methods in the master record, choose Payables Suppliers , select a supplier and click
Edit . Then choose Financial Data Payment Data . Under Payment Methods, you can select all payment
methods defined 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 to debit customer invoices directly from a customer's account by direct
debit. 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 any payment method defined for your company.
Features
Payment Methods in Open Items

You can specify the payment method for each disbursement during invoice entry. This payment method then
appears in the payment proposal list. However, if no payment method is specified, the standard payment method
from the master data appears in the payment proposal list. You can change this to any other payment method 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, showing 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 one. If a payment method is specified
in the item to be paid, this 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. 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. The payment is
then made regardless of the availability of liquid funds.
2.6 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 Payment File Structures , create a payment file structure according to the
bank specification for the format.
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.
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 Payment Monitor , create a new payment by clicking New Payment by
Outgoing Bank Transfer.
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 [page 119].
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.
2.7 Incoming Payments by SEPA Direct Debit
Overview
The Single Euro Payments Area (SEPA) enables you to make direct debits within the participating European
countries.
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, 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.
The functions for directly debiting your customers (within the SEPA participating countries) are available in the
Receivables, Payment Management, and Liquidity Management work centers.
Outgoing SEPA direct debits that are initiated by a supplier, for example, are not supported.
Prerequisites
You have made the following predefined settings in business configuration and the master data:
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.
Master Data
● In the Liquidity Management work center, My Banks view, you have made the following settings for the bank:
○ On the Payment Formats tab, you have selected the payment medium format SEPA Direct Debit.
○ On the Bank Accounts → Payment Method tab, you have selected the entry SEPA Direct Debit.
● You have received a unique creditor identifier from your country‘s national bank and have entered your
company in the master data in the Organizational Management work center.

● In the Receivables or Business Partners work center, in the Customers view:
○ On the Financial Data → Bank Data tab, you have entered the IBAN number.
○ On the Financial Data → Payment Data tab, you have defined the payment method Direct Debit.
● You have obtained and activated debit authorization in the form of a SEPA mandate from your customer and
have entered it in the Receivables or Business Partners work center.
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. Only one number can be requested. If any information
changes, such as the company or legal form of the applicant, a new number must be requested and the old number
submitted for deletion.
Create and Edit SEPA Mandate

The SEPA mandate is analogous to conventional debit authorization and is used as the payer’s approval to the payee
to initiate an automatic debit of the payer’s bank account.
As payee, you create the SEPA mandate, print it, and send the form by post to your customer. The customer signs
the mandate and returns it, thus giving you permission to debit their account. You add the missing information in
your solution 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
business-to-business direct debits. The type of mandate determines the time frames in which the banks must make
SEPA direct debits.
The mandate information is always defined in the payer’s master data.
For more information, see Create a SEPA Direct Debit Mandate.

If you want to keep track of the mandates for your customers or for certain periods of time, for example, you can do
so using the SEPA Mandate List report, which provides an overview of all SEPA mandates.
Process Flow
Creating the Sales Order and the Manual Invoice

1. Your customer has requested services or ordered goods using a sales order from the Sales Orders work
center. In the sales order, the sales employee enters the payment method Direct Debit. The payment method
is 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 order), you can create an invoice manually.
You do this in the Customer Invoicing work center where your company’s sales employee has issued the
customer the relevant manual invoice. When entering the invoice, the sales employee enters the payment
method Direct Debit. 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

In the Receivables work center, Payment Runs view, create a new payment run and enter the customer whose
payables you want to clear with SEPA direct debit.
For more information on the procedure, see Create and Edit Payment Proposals for Receivables.
Checking the payment proposal and executing the payment:
1. In the Receivables work center, Automatic Payments view, open the previously generated payment proposal
with Edit .
2. Check the payment proposal and make any necessary changes. For example, on the General Data tab you
can select another mandate ID if the correct mandate is not proposed.
3. To trigger the payment, click Execute Payment .
Initiating the Manual Direct Debit

1. In the Receivables work center, Customer Accounts view, select the customer whose payable should be
cleared by SEPA direct debit and click View .
2. Select the open items to be cleared and click Pay Manually By → Direct Debit.
3. On the New Incoming Direct Debit screen, check whether the prefilled entries are correct. For example, select
a different mandate ID if the correct mandate is not proposed.
4. Click Complete Bank Data . The Bank Account ID and Bank Name fields are filled automatically if possible. To
enter optional information, such as payment instructions, click View All . If you want to see the settings used
to complete your bank and payment data, click You Can Also and select Open Bank and Payment
Settings.
You can also preview the memo line of an incoming direct debit by clicking Preview → Memo
Line. To change the memo line configuration, close the popup window, click You Can Also and select
Edit Payment Correspondence Profiles. You need to have access rights to the Business
Configuration work center.
5. Click Release . The payment runs through an approval process and is then cleared.
You can track the status of your payment in the Payment Management work center, Payment Monitor view.
Creating and Downloading the Payment Medium

1. To create the payment medium automatically, navigate to the Payment Management work center, Payment
Media Runs view.
2. Create a 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.
Select the Including Bank Transactions checkbox. In the Format field, select SEPA Direct Debit.
3. Save your entries and activate and schedule the payment media run. The run is started at the time you
specified and a payment file is generated that you can send to the bank.
For more information, see the documentation for the Payment Media Runs view.

4. Download the payment file and save a local copy by navigating to the Liquidity Management work center,
Outbound Files view. 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.
Optional: Manually Creating the Payment Medium

1. To create the payment medium manually, navigate to the Payment Monitor view. This view is available in both
the Payment Management and Liquidity Management work centers.
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.
3. Click Actions for Bank Transactions → Create Payment File.
A payment file is generated 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,
Outbound Files view. 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.
Editing the Bank Statement

1. To enter the bank statement that contains the incoming payment of your SEPA direct debit item, navigate to
the Liquidity Management work center, Bank Statements view.
2. Depending on the standard processes in your company, you have the following options to enter bank
statement data in your solution:
● Manual Entry for Bank Statement Data Submitted in Paper Form
When you create the bank statement, select the SEPA direct debit payments manually and then release
the bank statement.
● Electronic Entry for Bank Statement Data Submitted Electronically
You can upload a locally saved bank statement file into your solution in the Inbound Files view.
Check the bank statement data in the Bank Statements view and release the bank statement. The data
from the locally saved bank statement file is automatically transferred to your solution.
If the bank statement was released, the relevant payment is indicated as confirmed.
For more information, see Bank Statements [page 156].
Additional Information on Bank Processing Times

By law, banks must process SEPA direct debit payments within certain periods of time. 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 automatically based
on the document date, which corresponds to the date of the respective payment. However, these date fields can be
overwritten.
The following default dates are determined automatically based on legal requirements:
● New core mandate
For core mandates that are used for the first time, the default bank processing date 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 default bank processing
date 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 default bank processing
date is two bank business days after the document date.
● Business-to-business mandate
For business-to-business mandates, the default bank processing date is always one bank business day after
the document date.
Note that the above calculations assume that you send the payment file to the bank the same day 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, Payment Monitor
view. The SEPA mandates used for a direct debit are shown in the payment monitor.
2.8 Foreign Currency Remeasurement
Overview
Foreign currency remeasurement is a procedure that restates the value of payables, receivables, and cash balances
posted in a foreign currency to the company currency at period end. The postings are then reversed at the start of
the next period.
You can perform foreign currency remeasurement runs for payables, receivables, and cash in foreign currency.
Foreign currency remeasurement is an important part of period-end closing.
Foreign Currency Remeasurement for Payables, Receivables, and Cash

Foreign currency remeasurement runs for payables, receivables, and cash function as follows:
1. The run selects all open payables, receivables and open balances for which the transaction currency differs
from the company currency. The open items are added either by individual business transactions or all
business transactions of a business partner.
2. The key date for the run is the last day of the period or fiscal year specified in the run. The open items are
valued using the exchange rate valid on the key date and compared to the amounts that were originally posted.
3. The run generates correcting entries for the open items so that the balance sheet reflects the gains and losses
resulting from exchange rate fluctuation.
Remeasurement runs for payables and receivables are based on the foreign currency remeasurement
method. For more information, see Configuration: Foreign Currency Remeasurement Methods for
Payables and Receivables.
4. The differences are posted to the relevant payables, receivables, or balance account. The offsetting entry is
to a separate expense and revenue account for exchange rate differences.
5. This entry is reversed on the first day of the new period because it is not required for daily business.
If you don't want the entry to be reversed at the beginning of the new period, your administrator can
make changes in business configuration to prevent this. Note that this is possible only for Foreign
Currency Remeasurement for Cash.
To make this configuration change, in the Business Configuration work center, under Foreign Currency
Remeasurement Methods for Cash, select the Accounting Principle, select Use for Cash . In
Assignments for Cash, select the No Subsequent Reversal Posting checkbox for the relevant foreign
currency remeasurement method.

Foreign currency remeasurement runs for payables and receivables include open items only. If you repeat a
run, 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 accounting period is closed for operational postings before
starting the run.
Reversal of Remeasurement
Depending on the settings in business configuration, the reversal of a remeasurement run leads to either negative
postings or equivalent debit or credit postings. The journal entries from the original remeasurement run are reversed
on the first day of the new accounting period since they are not required for daily business.
If you reverse all foreign currency remeasurement runs for a period, the balance sheet and income
statement for the period will not show correct figures. To rectify this, execute the foreign currency
remeasurement run at least once more.
Posting Example
Remeasurement
Debit Credit
Receivables 5000
Exchange Rate Differences from 5000

Remeasurement
Reversal in the New Period
Debit Credit
Exchange Rate Differences from 5000

Remeasurement
Receivables 5000
2.9 Reclassification
Overview
A reclassification run posts the corresponding receivables or payables automatically by means of journal entries,
based on their remaining terms.
Prerequisites
You have to have set up account determination for 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 activity list.
Under Account Determination choose Accounts Payable or Accounts Receivable. You specify the respective
reclassification accounts on the Reclassification tab.

Standard account determination for reclassification contains the default accounts for payables and receivables. All
other accounts, such as accounts for retainages or the accounts you have manually added to your own chart of
accounts, you need to specify separately. For more information on 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 that row then applies
to all values of the account determination group (default account). If you have set up account determination
for a specific value of the account determination group, that value always takes priority over the default
account.
Nevertheless it is recommended that you always specify the account determination group.
Reclassification for Payables and Receivables

Depending on the set of books, payables and receivables are reclassified as follows:
1. Accounts Receivable / Payable
For each debtor and creditor, the run determines whether it is a true receivable or payable account, or if they
are actually accounts receivable with a credit balance and accounts payable with a debit balance. This
determination is based on the closing balance:
● If the closing balance is a debit amount, it is classified as accounts payable.
● If the closing balance is a credit amount, it is classified as accounts receivable.
2. Remaining Terms
Depending on whether the debtor or creditor relates to accounts receivable or payable, the receivable and
payable items are reclassified by the remaining term:
● For all accounts receivable/payable, all receivables and payables for which the remaining term is greater
than one year are reclassified on separate G/L accounts. Accounts are provided for remaining terms
greater than one year and greater than five years.
The offsetting posting is directly to the previously used receivables / payables account.
● For accounts payable with a debit balance / accounts receivable with a credit balance, all available
receivables and payables are reclassified on separate G/L accounts, such as debit postings.
The offsetting posting is directly to the previously used receivables / payables account.
3. Reversal of Reclassification
Depending on the settings in 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 the run again using the same parameters, only the items that have changed since the previous run are
processed.
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.
Example
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 Credit
Payables 1500
Payables > 1 Year 1500
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 run makes the relevant transfer postings:
Debtor 1: Reclassify Receivables
Debit Credit
Receivables 600
Receivables > 1 Year 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 Credit
Payables 200
Accounts Payable with Debit Balance 200
2.10 Canceling a Supplier Invoice
Overview
You can cancel incoming invoices that you have already paid or for which you have requested payment. The
procedure for the cancellation depends on the status of the invoice and the payment.
It is better not to 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 then cancel
the invoice in the Supplier Invoicing work center.
If you cancel the supplier invoice in the Supplier Invoicing work center first, 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.
If payment reversal is not possible
In this case, reverse the payment clearing in the supplier account monitor:
1. Go to the Payables work center and access the supplier account under Supplier Accounts then View . Select
the relevant invoice and click Clearing Document . Click View All then Reset Clearing .
The status changes from Cleared to Open.
If payment reversal 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 shows the status Ready For Transfer if a check has not yet been printed. In
this case, you can start directly with step 2 below to cancel the payment.
The Payment Management work center shows the status In Transfer if a check has already been printed. In this case,
proceed as follows to first reset the status to Ready For Transfer then cancel the payment.
1. Go to the Payment Management work center and select the payment in the Payment Monitor view. For a check,
for example, then choose Actions for Checks Set to Not Transferred .
The status displayed in the payment monitor is Ready For Transfer.
2. Go to the Payables work center and access the supplier account under Supplier Accounts then View . Select
the payment and click the value in the Document ID column. Click View All then Actions → Reverse .
The payment and clearing are reversed. The status displayed in both the supplier account monitor and the
payment monitor is Canceled.
Canceling the Invoice
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 .
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 the associated payment amounts can only be canceled in full.
See Also
Supplier Account Monitor [page 34]
Payment Allocation and Clearing [page 99]

2.11 Canceling a Customer Invoice
Overview
You can cancel outgoing invoices that have already been paid by direct debit. The cancellation procedure depends
on the status of the invoice and the payment.
It is better not to 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 then cancel
the invoice in the Customer Invoicing work center.
If you cancel the invoice in the Customer Invoicing work center first, 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
direct debit has already been sent in a payment file to the bank.
If payment reversal is not possible
In this case, you 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 access the customer account under Customer Accounts → View .
Select the relevant invoice and click Clearing Document . Click View All then Reset Clearing .
The status changes from Cleared to Open.
If payment reversal is possible

It is only possible to reverse the payment if it is a direct debit payment and the payment has not yet been processed
by your bank. If this is the case, the Receivables work center shows the status Cleared.
The Payment Management work center shows the status Ready For Transfer if a payment file has not yet been
created. In this case, you can start directly with step 2 below to cancel the payment.
The Payment Management work center shows the status In Transfer if a payment file has already been created. If
you have not yet sent the file to the bank, proceed as follows to first reset the status to Ready For Transfer and then
cancel the payment.
1. Go to the Payment Management work center and select the payment in the Payment Monitor. For an incoming
direct debit, for example, then choose Actions for Bank Transactions → Set to Not Transferred.
The status displayed in the payment monitor is Ready For Transfer.
2. Go to the Receivables work center and access the customer account under Customer Accounts → View .
Select the payment and click the value in the Document ID column. Click View All then Actions →
Reverse .
The payment and clearing are reversed. The status displayed in both the customer account monitor and the
payment monitor is Canceled.
Canceling the Invoice

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 .
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 the associated payment amounts can only be canceled in full.
See Also
Customer Account Monitor [page 61]

3 Payables
3.1 Business Background
3.1.1 Open Items Payables
Overview
Open items are posted open invoices for goods and services or credit memos that have not been 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 need to have entered and posted a supplier invoice. If you don't assign a company to a
supplier when you create the master data, this is done automatically with the first posted invoice. You can also assign
the company as follows:
1. In the Payables work center, go to the Suppliers view.

2. Select the supplier and click Edit , then Financial Data.
3. Under Companies, add the company and the account determination group.
For more information, see Configuration of Account Determination for Business Transactions.
View of the Lists of Open Items

To get an overview of your open items, use the following reports in the Payables work center:
● Aging List for Payables
Shows 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
Shows payables for which the due date is after the specified key date and in the future, giving you an overview
of your outgoing payments to be made.
● Payment Statistics – Suppliers
Shows the open items.
You can also see the open items of a specific supplier using the Supplier Account Monitor. For more information, see
Supplier Account Monitor [page 34].

Payables P U B L I C • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 33
3.1.2 Supplier Account Monitor
Overview
The supplier account monitor provides you with an overview of your payables to your suppliers. You can see for
example which invoices need to be paid 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 access the supplier account monitor:
1. In the Payables work center, open the Supplier Accounts view.
2. Select a supplier and click View .
To view an employee account, use the filter to show employees.
The following tabs are shown:

● General
Shows 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
Shows 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:
○ Open Items shows open items and partially cleared items.
○ Cleared Items shows cleared items and canceled items.
You can choose whether to include statistical items, such as down payment 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.
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

Shows the transactions made on a particular supplier account within a specified period, including the opening
and closing balances.
It is also possible to sort according to open item reference ID in order to view associated debit and credit
entries together.
● Changes
Shows the change history for a supplier account.
● Reports

34 © 2016 SAP SE or an SAP affiliate company. All rights reserved. • P U B L I C Payables
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.
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 clearing could not be performed 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 be zero.
Differences can be written off or kept as remaining open items, which can be cleared later with future payments.
To start manual clearing:
1. Select the required invoices and click Clear Manually . Only items that are not already in clearing (no payment
proposal has been created) are available for editing.
2. Select the relevant open items and click Match Items . The total balance of the selected items is displayed.
If you use the function for splitting open items, you can use the supplier account monitor to perform manual
clearing only. 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. Click Clear Manually .
2. Click Apply Discount or Credit .
3. Enter the amount and reason. The complete amount of the difference is distributed to the items.
● You can distribute the difference amount to selected items individually:
2. Select the appropriate item in the table.
3. Click Additional Discounts and Credits.
4. Click Add Row.
5. Enter the amount and reason.
The exact behavior also depends on the clearing strategy settings in business configuration.
The tax consolidation associated with the underpayment is performed automatically.
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 payments were allocated to the open invoices based on invoice references and if clearing has taken place, a task
is created for payment clearing in the event of overpayments. This depends on the settings for the clearing strategy
in business configuration. 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:
2. Select the relevant items.
3. Click Apply Discount or Credit and enter a reason for the difference and the amount.
No tax adjustments are generated automatically 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 [page 29].

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 click Clearing Document .
3. Click View All . You see a list with the clearing documents for this item.
4. Click Reset Clearing .
5. Enter a cancellation date and document description (if desired).
6. Click 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, part of the
invoice is cleared automatically. 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 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.
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.
See Also

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.
Prerequisites
Fine-Tuning
You activate Cash Discounts for Payables in Financials in solution configuration. To do this, go to the Business
Configuration work center and choose Implementation Projects . 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 payment terms. To do this, choose General Business Data Suppliers Edit Payment
Terms .
● There needs to be an account for Deducted Cash Discounts which you need to have 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 define your payment strategy. To do this, choose Cash Flow Management Payment
Strategy .
Automatic Deduction of a Cash Discount

A cash discount can be determined automatically and deducted when a supplier invoice is paid, 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. Otherwise, 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, but you can overwrite them. You find the payment proposal list in the Payables work center under Automatic
Payments.
Manual Deduction of a Cash Discount

Clear Manually
You can enter a cash discount while 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.
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. 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.
● 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. 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.
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. The amounts 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 documents.
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 as a positive amount for the credit memo, meaning
that no cash discount is paid.
If the credit memo has no cash discount terms, a cash discount is calculated and posted to the credit memo during
manual clearing.
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 with a down payment, 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.
If you want to apply the cash discount to the total amount of the invoice, 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 [page 34]
3.1.4 Down Payments Made in Financials
Overview
It is sometimes necessary to make a down payment on an invoice amount before goods are produced or services
provided, for example to secure a reservation. In such cases, the supplier sends a down payment request, which is
entered in the system.
The down payment request is displayed in the payables balance as a statistical open item. The amount of the down
payment request is not posted to accounting initially, nor is the tax amount entered. These occur at a later date when
the payment is made.
Down payments can be made manually, or automatically in a scheduled payment run. If the payment is created
automatically, the tax and down payment amounts are posted to the corresponding general ledger accounts.
Once the final invoice for the total amount is received, the total invoice item is automatically assigned to the matching
down payment item. 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)
[page 223].
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 Configuration of Account Determination for Business Transactions
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 quote the relevant
purchase order when you enter the own payment request. If you enter an invoice later, the referenced down
payment is identified from the purchase order number. For more information, see Create a Down Payment
Request.
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 in a payment run. You pay the down
payment request manually in the Payables work center, Suppliers and Supplier Accounts views. Your down

payment request is displayed in the supplier account monitor with the status Open. Choose the action Pay
Manually By <Payment Method> (Pay Manually By Outgoing Check, for 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.
You pay the down payment request using an automatic payment run in the Payables work center, Automatic
Payments view. Once the automatic payment run has been performed, a payment proposal is displayed that
contains your down payment request with the status Open. By scheduling a payment run, and depending on
your settings in business 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. You enter the final
invoice in 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, provided 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 the related section in Supplier Account Monitor [page 34].
Discount Applied to Supplier Invoices with Down Payments
When a supplier invoice with a down payment is cleared, no cash discount is posted. If the system creates the final
payment during the automatic payment run, it proposes the cash discount amount only for the remaining amount
of the invoice.
If you want to apply the cash discount to the total amount of the invoice, 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 [page 38].
3.1.5 Chain Liability — Netherlands
Overview
Documentation is available on this topic that is specifically relevant for the Netherlands. To ensure that the
relevant country-specific document version is displayed, select Personalize My Settings . Select
Onscreen Help and, under Country, choose Netherlands. Save your settings and logout to ensure these
changes are made.

3.2 Views
3.2.1 Quick Guide for Suppliers (Payables)
The Suppliers view in the Payables work center provides access to all supplier master data related to your accounts
payable. You can check transaction and account details, and verify and release the supplier balance confirmations
created in the balance confirmation run. The Suppliers view has three subviews:
Supplier Accounts
Here you can display the account balances of your suppliers, as well as call up and edit (manually clear, for example)
individual payables items.
Suppliers
Here 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
Here you can display a list of proposed balance confirmations, which you can check and release for sending to your
suppliers.
If you choose to send your balance confirmation letter by e-mail, you must ensure that there is an e-mail
address in the system for the supplier in question. If you want to send encrypted e-mail, you must also ensure
that a valid certificate has been assigned to the supplier’s e-mail address. It is also possible to sign e-mails.
If you want to use encryption and signatures, you must activate the Receivables/Payables – Balance
Confirmation scenario in configuration. For more information on this task, see Configuration: E-Mail
Encryption and Signature Check.
Business Background
● Supplier Account Monitor [page 34]
● Open Items Payables [page 33]
Tasks
Create and Edit a Supplier

1. In the Suppliers subview, click New then Supplier.
2. Enter the name of the supplier, the address, the communication data, and any other
information.
3. To return to the Suppliers subview, click Save and Close .

3.2.2 Quick Guide for Automatic Payments (Payables)
You can access this view in the Payables work center under Automatic Payments. The view displays all 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. The payment run creates payment proposals, which contain all
due invoices and any cash discounts granted for immediate payment. You can check the payment proposals, and
release, postpone, or cancel them as necessary.
This enables you to pay your suppliers on time, although not prematurely, enabling your company to make use of
any cash discounts.
Tasks
Approve an Automatic Payment Proposal

For more information on this task, see Approve an Automatic Payment Proposal.
Display Payment Proposals

1. In the Automatic Payments view, select a payment and click View Payment Proposals .
2. The Payment Proposal List: <ID> screen displays a list of all the payment proposals
created by the payment run execution that includes the selected payment.
3.2.3 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 these
payments 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 based on factors such as the payment amount, due payment date, and payment references. You can
simply accept these proposals or you can change them. You may, for example, change the discounts that are to be
applied to each invoice or change which invoices are to be paid with the payment. The system provides you with a
list of different discounts and deductions that you can apply. Once the difference between the payment amount and
the invoice amount has been eliminated, the outgoing payment can be cleared.
The Payment Clearing task is complete once 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
● Payment Allocation and Clearing [page 99]
● Cash Discounts for Payables in Financials [page 38]
Tasks
Clear an Outgoing Payment Manually

For more information on this task, see Clear an Outgoing Payment Manually.
View Clearing
1. In the Payment Clearing view, select the payment clearing you want to display and click
Show Clearing .
2. In the Clearing Overview: <ID> screen, you can view details 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. If you want to clear the outgoing payment manually, click
View All to access manual clearing.
3.2.4 Quick Guide for Payment Runs (Payables)
In the Payment Runs subview of the Periodic Tasks view of the Payables work center, you can create, edit, schedule,
and execute automatic runs that generate payment proposals for internally initiated payments. You can also view
the application logs of runs that have already been executed.
You do not use this view to generate bank transfers, direct debits, or checks. You use the Payment Media Run in the
Payment Management work center for this.
Business Background
● Mass Data Runs (MDR)

Tasks
Create and Edit Payment Proposals for Payables

For more information on this task, see Create and Edit Payment Proposals for Payables.
3.2.5 Quick Guide for Balance Confirmation Runs (Payables)
You use balance confirmation runs in the payables area to compile supplier balance confirmation data and create
balance confirmation letters. These letters inform your suppliers of their balances and request confirmation of them.
This enables you to reconcile your records with your suppliers' records.
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.
Business Background
● Balance Confirmation for Payables
● Open Items Payables [page 33]
Tasks
Create a Balance Confirmation Run

For more information on this task, see Create a Balance Confirmation Run.
3.2.6 Quick Guide for Foreign Currency Remeasurement Runs

(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 not in 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. When the balance sheet is created, a different exchange rate
applies, which means you 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
● Foreign Currency Remeasurement [page 26]
● Configuration: Foreign Currency Remeasurement Methods for Payables and Receivables
● Currencies
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 Exchange Rate, Exchange Rate Type, and Conversion Type.
● You need to have reclassified the payables. For more information, see Reclassification
of Payables Quick Guide [page 48].
● Using account determination, you need to have defined and set up in configuration the
accounts that you want to remeasure. For more information, see Configuration of
Account Determination for Business Transactions.
● You need to have assigned the appropriate set of books to the foreign currency
remeasurement method. This defines how exchange rate differences are valuated and
posted. For more information, see Configuration: Foreign Currency Remeasurement
Methods for Payables and Receivables.
Perform Foreign Currency Remeasurement for Payables

1. You have the following options for creating the run:
● To create a new run from scratch, click New , then Foreign Currency
Remeasurement Run.
● To create a new using the data from a previous run, select a run and click Copy .
The data from the selected run is copied into the selection screen for the new run.
You can then adjust the run parameters and selection data as needed.
2. To perform the run as a test run, select the Test Run checkbox. This allows you to see
a simulation of the results without creating any actual postings.
Only test runs and scheduled runs can be deleted.
3. Enter the data for the run, such as the company, closing step, and period/year.
● Set of Books
If you enter a set of books, the remeasurement will be performed for that set of
books only. If you do not enter a set of books, the remeasurement will be performed
for all sets of books in the selected company.
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 key date
is determined 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 the content on the topic of Closing Steps.
4. You can execute the run immediately or schedule it to run at a later time. The run will
also start immediately if you schedule it but don’t enter a date and time.
5. When execution of the run is finished, the run appears in the list of runs. You can now
review the results.
Perform Reversal of Foreign Currency Remeasurement 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 remeasurement run you want to reverse. The run must be an Update run
and must have Finished as the execution status.
Foreign currency remeasurement runs must be reversed in the opposite

sequence to their execution. That is, if you executed multiple runs with the same
data, you must reverse the last run first, then the next-to-last run and so on.
2. Click Reverse , enter a Run Description and schedule the run.

If you schedule the run for a later time, it is listed in the view with a blank status. The
status switches to Finished when the run has been executed.
When execution is finished, the reversed run appears in the list of finished foreign
currency remeasurement runs. You can now review the results of the run.
The Reversed checkbox is selected for all reversed runs.
Display and Check Log

1. Display Log
If you performed foreign currency remeasurement immediately, a status message is
issued. To display a list of the logs, click Display Log in the status message.
If you scheduled foreign currency remeasurement, you can display the list of logs
after run has completed by selecting the run in the view.
2. Check the Log
The log contains the following information:
● General
Shows the result of the run, 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 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 were posted for the key
date valuation.
● Processed Successfully

Shows for each remeasured account all the documents with their source
document ID, historical amount, and key date value, as well as gains and losses.
● Not Processed
Shows for each remeasured account the documents for which errors occurred
during processing (for example, no account could be determined).
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 your run in the Job Monitor.
Select the relevant run and click View Jobs . If a job finds errors, contact your
administrator.
3.2.7 Reclassification of Payables Quick Guide
You use the reclassification of payables functionality to help you to display your payables correctly.
The reclassification of payables and receivables is an important closing step. Based on the closing balance for each
debtor and creditor, the system classifies the amounts accordingly under accounts payable for debit amounts, and
under accounts receivable for credit amounts. The system then also reclassifies the receivable and payable items
by remaining term (0 – 12 months, 12 – 60 months, > 60 months). A reclassification can be reversed.
The intervals for the reclassification are derived automatically based on the accounting principles specified in
business configuration.
Business Background
● Reclassification [page 27]
Tasks
Reclassify Payables
1. To run a new reclassification, click New then Reclassification of Payables.
2. You have the following options:
● Reclassification with Reference
To reuse the data from a previous reclassification, select the reclassification 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.

● Test Run
To run a reclassification as a test run, select Test Run. The system previews the
results of the test run but does not actually make any postings. The postings are
only simulated.
● Set of Books
You can run a reclassification for a single set of books or for several sets of books.
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
postings on the key date to the relevant accounting period. This accounting period
must be open for the closing step that you have selected. For more information,
see the content on the topic of Closing Steps.
3. Scheduling
You can run a reclassification immediately or schedule it to run later:
● To run a reclassification immediately, click Start Immediately .
● To schedule a reclassification for a subsequent point in time, choose Schedule
and indicate when you want the system to perform the reclassification. If you leave
the Date and Time fields empty, the run will start immediately.
You can view scheduled reclassifications by clicking View Jobs .
● Review the results of the reclassification and complete accordingly.

1. Display Log
If you have run a reclassification immediately, the system issues a status message. To
display details, click Show Log in the status message.
If you have scheduled a reclassification, you can display the list of logs after the
reclassification has run. To do this, choose the relevant reclassification.
2. Check Log
● 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.
checks:
● Log
Display .
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 at the
previous attempt.
● Job Monitor
cause, you can display the technical details of your run in the Job Monitor. Select
the relevant run and click View Jobs . If a job has errors, contact your
administrator.
Reverse a Reclassification of Payables
If you run the reversal in an accounting period after the period is closed, the system
does allow you to execute the run. At the end of the run, instead of postings, you will
see an error message stating 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 execution status.
2. Schedule reversal run
Click Reverse , enter a Run Description, and schedule the run.
3. Review the results of the run and complete accordingly.
4. Result
As a result of reclassification, the system posts negative postings or equivalent debit
or credit postings. This is determined by business configuration.
3.3 Reports
3.3.1 Aging List for Payables
Overview
This report displays for each supplier your overdue payables according to a specific key date and aging period.

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:
● Cut Off Date
The cut-off-date is transaction date (which refers to the posting date in the original transaction, displayed as
proposed posting date).
● Period 1 through Period 4
You can specify four aging periods to group your overdue payables. These periods are calculated from the
specified cut off 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.
See Also
● Reports View

● Overview of Reports in Financial Management
● Overview of Data Sources in Financial Management
3.3.2 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
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
total future due amount, open total amount. The due date calculation refers to the due date of the maximum
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.

Features
Running the Report

● 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.
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).

● Payments do not have a specific due date. The due date displayed therefore corresponds to the
transaction date.

● From the open items, you can drill down to the relevant details. To do this, select the appropriate value and
open the corresponding menu.
See Also
● Reports View

3.3.3 Details to Items of Suppliers
Overview
This report lists all items for a supplier for a particular period.
Features
Running the Report

● 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.
● From each supplier displayed, you can drill down to the relevant details. To do this, select the appropriate
See Also
● Reports View

3.3.4 Open Item List – Suppliers
Overview
This report lists the open items for each supplier for a specific key date.
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.
Features
Running the Report

value for all mandatory variables. In the system, mandatory variables are indicated by an asterisk (*). When doing
so, note the following:
● Key Date
system displays only items with a transaction date before the key date.


transaction date.

● 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.
See Also
● Reports View
3.3.5 Payment Statistics - Suppliers
Overview
The report provides an overview of your company's payment behavior towards its suppliers for a specific period.
Features
Running the Report

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

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.

● From each supplier displayed, you can drill down to the relevant details. To do this, select the appropriate
See Also
● Reports View
3.3.6 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.
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.
Features
Running the Report

an asterisk (*).
Additional information is available for the following selected variables:
● Clearing Date
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.
● 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.
From this report, you can navigate to:

● Business Partner Overview
● Details for All Items – Suppliers
● Payment Statistics – Suppliers [page 56]
See Also
● Reports View

3.3.7 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

4 Receivables
4.1.1 Open Items Receivables
Overview
Open items are posted open invoices from goods and services or credit memos that have not been 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 entered and posted a customer invoice. If you don't assign a company to a
customer when you create the master data, this is done 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 as follows:
1. In the Receivables work center, go to the Customers view.
2. Select the customer and click Edit , then Financial Data.
3. Under Companies, add the company and the account determination group.
For more information, see Configuration of Account Determination for Business Transactions.
View of the Lists of Open Items

The following reports in the Receivables work center show information about your customers' open items:
● Aging List for Receivables
Shows the overdue open items of your customers, structured by how long they are overdue in days.
● Forecast List for Receivables
Shows the open receivables for which the due date is after the specified key date and in the future, giving you
an overview of the incoming payments you can expect.
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
You can also see the open items of a specific customer using the Customer Account Monitor. For more information,
see Customer Account Monitor [page 61].

60 © 2016 SAP SE or an SAP affiliate company. All rights reserved. • P U B L I C Receivables
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 access the customer account monitor:
1. In the Receivables work center, open the Customer Accounts view.
2. Select a customer and click View .
The following tabs are shown:

● General
Shows the customer’s 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 access the supplier account if you have defined the roles of both supplier and customer in the master
data records.
● Trade Receivables – Invoices/Payments
Shows the transactions on a customer account. You can also create manual payments and clear payments
manually.
You can filter the invoices, credit memos, and payments according to their status:
○ Open Items shows open items and partially cleared items.
○ Cleared Items shows cleared items and canceled items.
Document Amount in Transaction Currency or Cleared Amount 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.
You can set or reset dunning blocks under Actions .
Documentation is available on this topic that is specifically relevant for Austria. To ensure that the
Onscreen Help and, under Country choose Austria. Save your settings.
● Trade Receivables – Postings

Shows the transactions on a customer account within a specified period.
● Changes
Shows the change history for a customer account.
● Reports
Here you can run reports on balances, as well as access reports on aging, forecasts, and dunning for the
selected customer.

Receivables P U B L I C • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 61
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 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.
Split Items
If there is only a partial payment for an invoice that leads to a partial clearing of the invoice, split items are created
for this invoice. 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 clearing could not be performed automatically. You can also
clear credit memos with invoices or outgoing payments from the customer with credit memos. When you perform
clearing, the balance of the selected items may not be zero. Differences can be written off or kept as remaining open
items, which can be cleared later with future payments.
To start manual clearing:
1. Select the required invoices and click Clear Manually . Only items that are not already in clearing (no payment
proposal has been created) are displayed for editing.
2. Select the relevant open items and click Match Items . The total balance of the selected items is displayed.
If you use the function for splitting open items, you can use the customer account monitor to perform manual
clearing only. The items have the same external reference and must therefore be cleared manually and
included in separate clearings.
Manual Payment
The Pay Manually By function on the Invoices/Payments subtab of the Trade Receivables tab enables you to pay
invoices or credit memos. The payment methods available are based on your definition in the customer master data.
Underpayment
If a difference arises because the payments received are less than invoiced, you can handle this as follows:
● You can distribute the difference amount to the selected items together:
2. Click Apply Discount or Credit .

3. Enter the amount and reason. The complete amount of the difference is distributed to the items.
● You can distribute the difference amount to selected items individually:
2. Select the appropriate item in the table.
3. Click Additional Discounts and Credits .
4. Click Add Row .
5. Enter the amount and reason.
The exact behavior also depends on the clearing strategy settings in business configuration.
The tax consolidation associated with the underpayment is performed automatically.
Loss on Receivable in the Event of Insolvency

You can write off an open item for which no payment has been received and for which you no longer expect an
incoming payment:
1. In the customer account monitor, filter for open items.
2. Select the open invoice or invoices.
4. Under Other Discounts/Credits, enter the full amount and select the reason S01 - Insolvency.
5. Click Clear .
The receivable is written off or depreciated on the Write Down of Current Assets account. The VAT that has already
been paid is automatically recalculated and corrected accordingly on the tax account. In the General Ledger work
center in the Journal Entries view, 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 payments were allocated to the open invoices based on invoice references and clearing has taken place, a task is
created for payment clearing in the event of overpayments. This depends on the settings for the clearing strategy
in business configuration. 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:
2. Select the relevant items.
3. Click Apply Discount or Credit and enter a reason for the difference and the amount.
No tax adjustments are generated with respect to the overpaid amount. To make a tax adjustment for the
overpaid amount, go to 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.
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 a new open item (reversal document) is generated.
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 [page 31].
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 click Clearing Document .
3. Click View All . You see a list with the clearing documents for this item.
4. Click Reset Clearing .
5. Enter a cancellation date.
6. Click 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, part of the
invoice is cleared automatically. 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, a cancellation invoice is generated. 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 (for example 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.
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
● 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.
See Also
4.1.3 Automatic Dunning
Overview
You can use dunning notices or payment reminders to remind customers about amounts due (outstanding
receivables).
You can use a dunning run to determine on a regular basis all the invoices and down payment requests for which
payment is overdue or due shortly. The run generates a dunning proposal list, which you can review and edit before
the dunning notices or payment reminders are created. The dunning run bases its proposals on the dunning strategy
defined in configuration.
After you have reviewed (and edited if necessary) the dunning proposal list, it can be released. The dunning notices
or payment reminders are then sent to your customers by fax or e-mail, or printed for sending by mail. Note that if
you are sending by mail, you can configure an alternative 'dun-to' address if you want to send all reminder letters
and dunning letters to an address other than the main address of the customer.
Prerequisites
You have made the following settings:
Scoping
You have entered the country-specific dunning procedures.
Fine-Tuning
You have defined the dunning strategy in the Business Configuration work center under Activity List Fine-Tune
Cash Flow Management .
You can specify the dunning strategies that the system should use when creating a dunning proposal list. These
settings determine when the overdue items are included.
Master Data
In the Application and User Management work center, you can select the dunning form you want to use and specify
how it should be sent.

Process Flow
Create a Dunning Proposal List
You create the dunning proposal list using the dunning run. For more information, see Quick Guide for Dunning Runs
(Receivables) [page 76].
Based on the criteria you entered when defining the dunning run, the system determines all the relevant items.
Receivable items will not be included in the list if:
● You have not defined a dunning level for the document type (invoice or down payment request).
● The receivable has already been dunned and the next dunning level has not yet been reached.
● The highest dunning level has already been reached.
● You have agreed with your customer that payments will be made by direct debit.
● You have blocked the receivable for dunning.
● You have blocked the customer for dunning.
List Receivables with Highest Dunning Level

Once an overdue payment item has already reached the highest dunning level, it is not included in any further dunning
proposal lists. An additional dunning document may render the previous correspondence invalid. Often a supplier
would initiate legal action under these circumstances.
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 of the Receivables work center. For more information, see Quick
Guide for Dunning [page 75].
4.1.4 Cash Discounts for Receivables in Financials
Overview
Customers 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.
Prerequisites
Fine-Tuning
Cash Discounts for Receivables in Financials is activated in 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 General Business Data Accounts Maintain
Payment Terms .
● There needs to be an account for Granted Cash Discounts that you must enter in your financial reporting
structures and assign 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 define your clearing strategy. To do this, choose Cash Flow Management Clearing
Strategies .
Automatically Determining Granted Cash Discounts

When the open item was created, the system calculated any cash discount amounts. For this, it 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 those 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 deducted by the customer are taken into account for automatic incoming payments, such as
incoming bank transfers on a bank statement. The system uses the clearing strategy to compare the cash discount
amount it has calculated for the payment execution date against the cash discount amount actually deducted by
the customer. You can also define grace days for deducting cash discounts 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.
Cash Discount Deductions for Manual Incoming Payments

When a manual incoming payment is entered, the system proposes the cash discount amount. You can overwrite
the proposal.
Deducting Cash Discounts During Manual Clearing

You can enter a cash discount while 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.
Cash Discounts for Partial Payments

If an invoice is only partially cleared, the cash discount is calculated and posted to the payment amount.
For an invoice of EUR 1,000 with a 3% cash discount, a partial payment of EUR 97 is made. In addition,
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 is defined in the system configuration
that a task is always 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 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 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 automatic clearing of a customer invoice with a down payment, the system does not post a cash discount. If
the system processes the final payment, it calculates the cash discount for the remaining payment. If your customer
has applied a greater cash discount, the system creates a payment clearing task.
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 for individual due items from point-of-sale transactions. These cash
discounts override the payment terms.

See Also
Customer Account Monitor [page 61]
4.1.5 Down Payments Received in Financials
Overview
It is sometimes necessary to receive a down payment on an invoice from a customer before goods are produced or
services provided. In such cases, you send a down payment request to the customer. This is entered in the system.
The down payment request is displayed in the receivables balance as a statistical open item. The amount of the down
payment request is not posted to accounting initially, nor is the tax amount entered. These occur at a later date when
you receive the payment.
Once your company has received the payment clearing 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 matching invoice.
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 down payment postings, see Postings for Down Payments (Gross Method) [page 223].
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 Configuration of Account Determination for Business Transactions
and Reconciliation Accounts.
Process Flow
1. Create Down Payment Request
You create a new down payment request in the Customer Invoicing work center. .
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.
You can include other payments for this incoming check. If the customer has transferred less than the
amount displayed in the down payment request, you can specify the difference 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.
You can also 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.
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 before to posting, provided 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 the related section
in Customer Account Monitor [page 61].
Discount Applied to Customer Invoices with Down Payments
When a customer invoice with a down payment is cleared automatically, no cash discount is posted. 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. If your customer has applied a greater cash discount, the system creates
a task 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 [page 66].
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
Fine-Tuning
You have selected the following settings in the Business Configuration work center under Activity List Fine-
Tuning Cash Flow Management :
● 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.
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)
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.
4.1.7 Pledging Agreements — Austria
Documentation is available on this topic that is specifically relevant for Austria. To ensure that the relevant
country-specific document version is displayed, select Personalize My Settings . Select Onscreen
Help and, under Country choose Austria. Save your settings.
4.2 Views
4.2.1 Quick Guide for Customers (Receivables)
The Customers view in the Receivables work center provides access to all customer master data related to your
accounts receivable. You can check transaction and account details, and verify and release the customer balance
confirmations created in the balance confirmation run. The Customers view has three subviews:

Customer Accounts
Here you can display the account balances of your customers, as well as call up individual receivables items. You
can also create manual payments and initiate manual clearing.
Customers
Here 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
Here you can display a list of proposed balance confirmations, which you can check and release for sending to your
customers.
If you choose to send your balance confirmation letter by e-mail, you must ensure that there is an e-mail
address in the system for the customer in question. If you want to send encrypted e-mail, you must also ensure
that a valid certificate has been assigned to the customer’s e-mail address. It is also possible to sign e-mails.
If you want to use encryption and signatures, you must activate the Receivables/Payables – Balance
Confirmation scenario in configuration. For more information on this task, see Configuration: E-Mail
Encryption and Signature Check.
Direct Debit Mandates for SEPA

If the IBAN and BIC are available, a SEPA mandate can be generated based on the direct debit details in the customer
master data. You can decide whether the mandate is printed out and sent to the customer for signature or activated
directly. For more information, see SEPA Migration Guide.
Business Background
● Customer Account Monitor [page 61]
● Open Items Receivables [page 60]
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.
3. To return to the Customers subview, click Save and Close .
Create a SEPA Direct Debit Mandate

For more information on this task, see Create a SEPA Direct Debit Mandate.

4.2.2 Quick Guide for Automatic Payments (Receivables)
You can access this view in the Receivables work center under Automatic Payments. You can use it to review proposed
incoming payments and release them for payment, as well as to create and track recurring payments.
Tasks
Approve an Automatic Payment Proposal

For more information on this task, see Approve an Automatic Payment Proposal.
Display Payment Proposals

1. In the Automatic Payments view, select a payment and click View Payment Proposals .
2. The Payment Proposal List: <ID> screen displays a list of all the payment proposals
created by the payment run execution that includes the selected payment.
4.2.3 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 these
payments 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 based on factors such as the payment amount, due payment date, and payment references. You can
simply accept these proposals or you can change them. You may, for example, change the discounts that are to be
applied to each invoice or change which invoices are to be paid with the payment. The system provides you with a
list of different discounts and deductions that you can apply. 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:
● 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 [page 66]
Tasks
Clear an Incoming Payment Manually

For more information on this task, see Clear an Incoming Payment Manually.
View Clearing
1. In the Payment Clearing view, select the clearing that you want to display and click
Show Clearing .
2. In the Clearing Overview: <ID> screen, you can view details 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. If you want to clear the incoming payment manually, click
View All to access manual clearing.
4.2.4 Quick Guide for Dunning
In the Dunning view of the Receivables work center, you can use dunning proposals created by the system to issue
dunning notices to customers that have overdue payment items.
To create dunning proposals, use the dunning run provided under Receivables Periodic Tasks Dunning
Runs .
Business Background
● Automatic Dunning [page 65]
Tasks
Edit and Execute Dunning

For more information on this task, see Edit and Execute Dunning.

4.2.5 Quick Guide for Dunning Runs
In the Dunning Runs subview of the Periodic Tasks view of the Receivables work center, you can create, edit, and
execute automatic runs, which generate dunning proposal lists containing invoices for which payment is overdue or
due shortly.
Business Background
● Automatic Dunning [page 65]
Tasks
Create a Dunning Run

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

1. Select a dunning run with the status In Preparation or In Revision and click Edit .
2. In the Dunning Run: <ID> screen, you can check the data and make any changes
necessary. .
3. Choose Activate .
Alternatively, you can activate a dunning run directly from the Dunning Runs subview. To do
this, select a dunning run with the status In Preparation or In Revision and choose Actions
then Set to Active.
.
You cannot edit a run if it has the status Active.
Schedule a Dunning Run

1. Select a dunning run with the status Active and click Schedule .
The Schedule Job screen 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, or periodically.
3. Choose Save and Close .
Edit a Dunning Run

1. Select a dunning run with the status In Preparation and click Edit .
The Dunning Run: <ID> screen appears.
2. Make your changes.

3. Click Save .
Display Scheduled Runs

1. Select the dunning run you want to review and click View Jobs .
The Job Monitor screen appears.
2. You can check which runs are scheduled and change or cancel runs as 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 Application Log

1. To view the execution details of a dunning run that has already been executed, select
the run. The details are display in the lower table .
2. To then display the application log, click on the relevant ID in the Application Log ID
column in the lower table.
4.2.6 Quick Guide for Payment Runs (Receivables)
In the Payment Runs subview of the Periodic Tasks view of the Receivables work center, you can create, edit, schedule,
and execute automatic runs that generate payment proposals for internally initiated payments. You can also view
the application logs of runs that have already been executed.
You do not use this view to generate bank transfers, direct debits, or checks. You use the Payment Media Run in the
Payment Management work center for this.
Business Background
Tasks
Create and Edit Payment Proposals for Receivables

For more information on this task, see Create and Edit Payment Proposals for Receivables.
4.2.7 Quick Guide for Balance Confirmation Runs (Receivables)
You use balance confirmation runs in the receivables area to compile customer balance confirmation data and create
balance confirmation letters. These letters inform your customers of their balances and request confirmation of
them. This enables you to reconcile your records with your customers' records.

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.
Business Background
● Balance Confirmation for Receivables
● Open Items Receivables [page 60]
● Reserves for Bad Debt
Tasks
Create a Balance Confirmation Run

For more information on this task, see Create a Balance Confirmation Run.
4.2.8 Quick Guide for Foreign Currency Remeasurement Runs

(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 not in the company
currency. When the amounts of these open receivables originate, you convert them into the company currency using
the exchange rate valid at that time. When the balance sheet is created, a different exchange rate applies, which
means you need to revaluate the open items. You can repeat the remeasurement as often as required until the
receivables are cleared or written off.
Business Background
● Foreign Currency Remeasurement [page 26]
● Configuration: Foreign Currency Remeasurement Methods for Payables and Receivables
● Currencies
Tasks
Check Prerequisites
be fulfilled:

● You need to have reclassified the receivables. For more information, see
Reclassification of Receivables Quick Guide [page 81].
● 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 Configuration:
Foreign Currency Remeasurement Methods for Payables and Receivables.
Perform Foreign Currency Remeasurement for Receivables

1. You have the following options for creating the run:
● To create a new run from scratch, click New , then Foreign Currency
Remeasurement Run.
● To create a new using the data from a previous run, select a run and click Copy .
The data from the selected run is copied into the selection screen for the new run.
You can then adjust the run parameters and selection data as needed.
2. To perform the run as a test run, select the Test Run checkbox. This allows you to see
a simulation of the results without creating any actual postings.
Only test runs and scheduled runs can be deleted.
3. Enter the data for the run, such as the company, closing step, and period/year.
● Set of Books
If you enter a set of books, the remeasurement will be performed for that set of
books only. If you do not enter a set of books, the remeasurement will be performed
for all sets of books in the selected company.
ideally perform the remeasurement separately for each set of books. The key date
is determined on the basis of the fiscal year variant of the set of books.
● Closing Step
information, see the content on the topic of Closing Steps.
4. You can execute the run immediately or schedule it to run at a later time. The run will
also start immediately if you schedule it but don’t enter a date and time.
5. When execution of the run is finished, the run appears in the list of runs. You can now
review the results.
Perform Reversal of Foreign Currency Remeasurement for Receivables
postings you will see an error message saying that reversal is not possible because the
1. Select the remeasurement run you want to reverse. The run must be an Update run

Foreign currency remeasurement runs must be reversed in the opposite
sequence to their execution. That is, if you executed multiple runs with the same
data, you must reverse the last run first, then the next-to-last run and so on.
2. Click Reverse , enter a Run Description and schedule the run.

If you schedule the run for a later time, it is listed in the view with a blank status. The
status switches to Finished when the run has been executed.
When execution is finished, the reversed run appears in the list of finished foreign
currency remeasurement runs. You can now review the results of the run.
The Reversed checkbox is selected for all reversed runs.

1. Display Log
If you performed foreign currency remeasurement immediately, a status message is
issued. To display a list of the logs, click Display Log in the status message.
If you scheduled foreign currency remeasurement, you can display the list of logs
after run has completed by selecting the run in the view.
2. Check the Log
● General
Shows the result of the run, 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 run.
● Messages
● Postings
Shows all the account movements and journal entries that were posted for the key
date valuation.
document ID, historical amount, and key date value, as well as gains and losses.
● Not Processed
Shows for each remeasured account the documents for which errors occurred
during processing (for example, no account could be determined).
checks:
● Log
Display .
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
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
administrator.
4.2.9 Reclassification of Receivables Quick Guide
You use the reclassification of receivables functionality to help you to display your receivables correctly.
The reclassification of payables and receivables is an important closing step. Based on the closing balance for each
debtor and creditor, the system classifies the amounts accordingly under accounts payable for debit amounts, and
under accounts receivable for credit amounts. The system then also reclassifies the receivable and payable items
by remaining term (0 – 12 months, 12 – 60 months, > 60 months). A reclassification can be reversed.
The intervals for the reclassification are derived automatically based on the accounting principles specified in
business configuration.
Before you do reclassification, you need to have attended to reserves for bad debt as well as allowances for doubtful
accounts.
Business Background
● Reclassification [page 27]
● Reserves for Bad Debt
● Allowance for Doubtful Accounts
Tasks
Reclassify Receivables
1. To run a new reclassification, click New then Reclassification of Receivables.
2. You have the following options:
● Reclassification with Reference
To reuse the data from a previous reclassification, select the reclassification 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.
● Test Run
To run a reclassification as a test run, select Test Run. The system previews the
results of the test run but does not actually make any postings. The postings are
only simulated.
● Set of Books
You can run a reclassification for a single set of books or for several sets of books.
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

postings on the key date to the relevant accounting period. This accounting period
must be open for the closing step that you have selected. For more information,
see the content on the topic of Closing Steps.
3. Scheduling
You can run a reclassification immediately or schedule it to run later:
● To run a reclassification immediately, click Start Immediately .
● To schedule a reclassification for a subsequent point in time, choose Schedule
and indicate when you want the system to perform the reclassification. If you leave
the Date and Time fields empty, the run will start immediately.
You can view scheduled reclassifications by clicking View Jobs .
● Review the results of the reclassification and complete accordingly.

1. Display Log
If you have run a reclassification immediately, the system issues a status message. To
display details, click Show Log in the status message.
If you have scheduled a reclassification, you can display the list of logs after the
reclassification has run. To do this, choose the relevant reclassification.
2. Check Log
● 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
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.
checks:
● Log
Display .

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 at the
previous attempt.
● Job Monitor
cause, you can display the technical details of your run in the Job Monitor. Select
the relevant run and click View Jobs . If a job has errors, contact your
administrator.
Reverse a Reclassification of Receivables
If you run the reversal in an accounting period after the period is closed, the system
does allow you to execute the run. At the end of the run, instead of postings, you will
see an error message stating that reversal is not possible because the closing step for
the period has already been performed.

Select the reclassification you want to reverse. The run must be an Update run and
must have Finished as execution status.
2. Schedule reversal run
Click Reverse , enter a Run Description, and schedule the run.
3. Review the results of the run and complete accordingly.
4. Result
As a result of reclassification, the system posts negative postings or equivalent debit
or credit postings. This is determined by business configuration.
4.2.10 Quick Guide for Central Bank Reporting
Documentation is available on this topic that is specifically relevant for the following countries: Austria,
Belgium, Denmark, France, Germany, and the Netherlands. To ensure that the relevant country-specific
document version is displayed, select Personalize My Settings . Select Onscreen Help and, under
Country, choose the relevant country. Save your settings.
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. You can access this subview from the
Payables or Receivables work centers, under Periodic Tasks.
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 to see if central bank reporting is deactivated for your company.

Tasks
Determine Central Bank Codes

In Central Bank Reporting, you can set up rules to automatically determine which default
central bank codes are used for invoices that have the relevant attributes.
You can assign a default central bank code according to product category, product, or G/L
account, which will be automatically assigned to the appropriate reporting-relevant invoices.
Where you assign a default central bank code according to G/L account, the assignment is to
a defined account determination group rather than to a single G/L account. This account
determination group is the basis for posting or cost assignment. For more information on how
account determination groups are defined, see Charts of Accounts, Financial Reporting
Structures, Account Determination – Configuration Guide.
To ensure that the relevant country-specific document version is displayed, select

Personalize My Settings . Select Onscreen Help and, under Country, choose the
relevant country. Save your settings.
The Central Bank Code Determination – Customer Invoicing and Central Bank Code
Determination – Supplier Invoicing activities in business configuration are now obsolete
and kept for reference purposes only. It is recommended that you create rules using
Determine Central Bank Codes in the Central Bank Reporting view. If you have any
existing rules created for Austria, Germany, or France using the older method, you
should recreate them in the new activity.
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.
Assigning a Status for Central Bank Reporting Item
In Periodic Tasks Central Bank Reporting select the relevant line item(s), click Change
Status, and choose the appropriate status. For example, if you have already reported an item,
you should update the status accordingly so you do not accidentally report it again.

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 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.
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 company’s regular central bank reporting. For more
information, see Determination of International Organizations for Central Bank Reporting –
Austria .
This task is relevant for Austria only.
4.3 Reports
4.3.1 Aging List for Receivables
Overview
This report displays for each customer your overdue receivables according to a specific key date and aging period.

Features
Running the Report

● Cut Off Date
The cut-off-date is transaction date (which refers to the posting date in the original transaction, displayed as
proposed posting date).
You can specify four aging periods to group your overdue receivables. These periods are calculated from the
specified cut off 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).

● Customer invoices are displayed as positive amounts.
● Customer credit memos are displayed as negative amounts.
transaction date.

● You can call up the corresponding detailed information for the open items displayed. To do this, select the
See Also
● Reports View

4.3.2 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.
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
total future due amount, open total amount. The due date calculation refers to the due date of the normal
● Maximum Cash Discount
total future due amount, open total amount. The due date calculation refers to the due date of the maximum
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.

Features
Running the Report

● Key Date
system considers only items with a transaction date before the key date.
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).

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

● From the open items, you can drill down to the relevant details. To do this, select the appropriate value and
open the corresponding menu.
See Also
● Reports View

4.3.3 Dunning History - Customers
Overview
This report shows for each customer a detailed dunning history of all overdue payment items.
Features
Running the Report

value for all mandatory variables. In the system, mandatory variables are indicated by an asterisk (*).

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 can call up the corresponding detailed information for the items displayed. To do this, select the
See Also
● Reports View
4.3.4 Dunning History - Documents
Overview
This report shows each customer's detailed dunning history using individual documents.

Features
Running the Report

● 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.
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.
See Also
● Reports View

4.3.5 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.
Features
Running the Report

● Business Partner
You can restrict the display to one customer, which you can choose using the input help.
● Entry Date

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:
● 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.

See Also
● Reports View

4.3.6 Details to Items of Customers
Overview
This report lists all items for a customer for a particular period.
Features
Running the Report

● Entry Date
● 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.
● From each customer displayed, you can drill down to the relevant details. To do this, select the appropriate
See Also
● Reports View

4.3.7 Details to Open Items of Customers
Overview
This report lists the open items of a customer for a specific key date.
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.
Features
Running the Report

● Key Date
system displays only items with a transaction date before the key date.


● Customer invoices are displayed as negative amounts.
● Customer credit memos are displayed as positive amounts.
transaction date.

See Also
● Reports View
4.3.8 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
4.3.9 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.
Features
Running the Report

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
○ 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
4.3.10 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.
Features
Running the Report

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
○ 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.
● From this report, you can navigate to any mandate document by clicking on its mandate ID.
See Also
● Reports View
4.3.11 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 (*).
● 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
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.
The report is displayed in table format. You have the following options for analyzing the report:
● 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

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 required for both incoming and outgoing payments. The system usually
performs both automatically. In some cases, the system cannot perform these processes and will create manual
payment allocation tasks or manual payment clearing tasks, which require user involvement. The various 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 in the Payment Clearing view of the Payables or Receivables work center,
for supplier or customer payments respectively.
Payment allocation 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 then payment and item
are cleared. The system uses business partner and payment reference information, such 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, payment allocation and payment clearing are performed automatically.
Manual Payment Allocation Scenarios

In some cases, the automatic payment allocation process described above is not possible. The various scenarios
where this might occur are outlined below:
● Missing customer or supplier information
● Incorrect electronic bank statement configuration
● Transaction charges on foreign payments
● Bank charges or interest in bank statement
Missing Customer or Supplier Information

Payments may be received with some customer or supplier information missing for a variety of reasons, for example
if a payment is received from a third-party payer paying an open invoice on behalf of a customer. This third party
may be a parent or subsidiary company of that customer, for example. If this payer is not recorded in the customer
master data record, manual allocation of the payment to the customer will be required. Similarly, 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.

Payment Management P U B L I C • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 99
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 may 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, 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 .
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, 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, 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 to 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.
Documentation is available on this topic that is specifically relevant for Japan. To ensure that the relevant
Help and, under Country choose Japan. Save your settings.
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

A payment may be received without reference to the open item(s) that are to be paid by the payment. Similarly,
business partners may process externally initiated outgoing payments from your company without including
payment reference information. Payment references may 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 then both can
be cleared.

100 © 2016 SAP SE or an SAP affiliate company. All rights reserved. • P U B L I C Payment Management
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 may
be created if the payment difference exceeds the tolerance defined in your clearing strategy. You define a payment
tolerance 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 Received

Under certain circumstances, a payment may 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 payment.
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 occur only in extremely exceptional circumstances.
Reasons for Manual Tasks According to Payment Type
Payment Type Manual Payment Allocation Scenario Manual Payment Clearing Scenario
Incoming externally initiated (check or Missing customer or supplier information or All scenarios possible
bank transfer) incorrect electronic bank statement
configuration
Outgoing internally initiated (check or Incorrect electronic bank statement Payment difference
bank transfer) configuration
Outgoing externally initiated (direct Missing customer or supplier information Payment difference
debit)
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.

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 [page 70].
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 Pay Manually By Other Payment Methods . On the New Manual
Payment screen, click Close.
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 Credit Card Settlement Runs . The credit card payment is
then initiated during this run.
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.
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.
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.
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 New Bank
Payment Advice . Enter the following data and then click Release:
● Advice Type: Bank Credit Advice
● 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
Manual Incoming Payments
Quick Guide for Returns (in Sales Orders)

5.1.3 Period-End Activity for External Payments
Overview
External payments are payments registered outside of the SAP ByDesign system and realized via a service provider.
Some examples are payments received by credit card, point-of-sale, or through an e-commerce company. If an E-
Shop is connected to your system, the E-Shop collects payment confirmation from the online payment service
provider and supplies this information to the system.
External payments made through an E-Shop are generally received before goods or services are issued and invoiced.
In some countries, such as Germany, such payments must be reported separately in your company's period-end
reporting, as is the case with down payments.
Note that it is not possible to post such payments as down payments in the system. This would not be a
practical solution, since the down payment posting would need to be re-posted to the correct receivables
account as soon as the goods were shipped or the services rendered. Re-posting is inefficient if a high volume
of external payments are received. In addition, the time lag between posting and re-posting could be measured
in hours, or even minutes.
Depending on the country your company is located in, you may be required to report all payments received in advance
separately, and you may be required to declare taxes for those payments which are still open items. This document
deals with the steps that must be taken in order to prepare your company’s reporting for external payments.
Fine-Tuning (required)
● Create New G/L Accounts

You have created at least three new G/L Accounts: One for the correction of the receivables, one to show the
received payments as down payments, and one for the offsetting posting of the taxes. To find this business
option, navigate to the Business Configuration work center and choose your Implementation Project. In the
Fine-Tune phase, choose the activity Chart of Accounts, Financial Reporting Structure, Account
Determination.
For more information, see Display and Edit Chart of Accounts.
.
● New Account Determination Groups
To be able to use the new G/L accounts for the correction posting you have to create three new account
determination groups in the General Ledger: One in the group type Groups for Other Current Assets (you could
name this one Correction Account Receivables, for example), and one in the group type Groups for Other
Liabilities, (you could name this one Received Down Payments, for example), one in the group type Groups
for Other Current Assets (you could name this group Manual Tax Clearing, for example). To find this business
option, navigate to the Business Configuration work center and choose your Implementation Project. In the
Fine-Tune phase, choose the activity Chart of Accounts, Financial Reporting Structure, Account
Determination. Choose Edit Account Determination Groups and create your account groups.
● Assign New G/L Accounts to New Account Determination Groups

The new accounts need to be assigned to the new account determination groups. To find this business option,
navigate to the Business Configuration work center and choose your Implementation Project. In the Fine-Tune
phase, choose the activity Chart of Accounts, Financial Reporting Structure, Account Determination. In the
Account Determination section, choose General Ledger, Others, Other Current Assets and Other Liabilities.
Assign the accounts to their determination groups.
For more information, see the Configuration of Account Determination for Business Transactions document.
Process Flow
To meet GAAP requirements, you need to manually correct your received payments by entering a period end
correction posting.
1. You Check Open Item Report
All open payments for which goods and services have been rendered need to be assigned to their
corresponding invoices. You can verify that this has been done by running the report open item list for open
payments only. To do this, select Document Type 5 Payments. You can view the total amount of open
payments which still need to be corrected.
2. You verify.
5.1.4 Customer Payments by External Payments
Overview
External payments are payments not processed within the SAP Business ByDesign system. If an e-Shop is connected
to your system, the e-Shop collects payment confirmation from the online payment service provider used by the
customer, and supplies this information to the system. An online payment service provider offers online services for
accepting electronic payments through a variety of payment methods. The system enables you to process these
external payments. To be able to use the external payment process, you need to complete a few preliminary steps.
This document deals with both the preliminary steps that must be taken in order to use external payments and with
the external payment process itself.
Configuration
Scoping (required)
● E-Selling
You have activated E-Selling in your solution configuration: Customer Payments by External Payments is activated
automatically when E-Selling is scoped. To find this business option, navigate to the Business Configuration work
center and choose Overview. Select E-Selling from the list of Scoping Elements.
For more information, see Agreement With SAP-Qualified E-Selling Solution Partner .
Integrate and Extend (required)
● New Bank Directory Entry

You have created a new Bank Directory entry for each of your online payment service providers. To find the
bank directory business option, go to the Business Configuration work center, and choose the Implementation
Projects view. Select your implementation project and click Open Activity List . In the Integrate and Extend
phase, select Bank Directories from the activity list, and enter the details required for migration.
For more information, see Banks and Bank Accounts [page 161].
● New My Bank and New Bank Account
You have created a New My Bank entry for each of your online payment service providers. You need to have
created at least one bank account for each bank that represents an online payment service provider. Best
practice is to take your online payment service provider’s user name as Bank Account ID, because this
information has to be supplied by the e-Shop in order to get a proper sales order. To find this business option,
return to the activity list, select the Banks activity and enter the New My Bank details. On the same screen,
click on the View All button to enter Bank Accounts for your new my bank entry.
For more information, see Configuration: My Banks .
This activity can also be completed in the Liquidity Management work center. To find this activity,
choose Master Data My Banks .
Fine-Tuning (required)
● External Reference Number Determination for Customer Invoice
You have defined the data source to determine the external reference number for an invoice document. To find this
activity, go to the Business Configuration work center and choose the Implementation Projects view. Select your
implementation project and choose Open Activity List . Select the Fine-Tune phase, then select the External
Reference Number Determination for Customer Invoice activity from the activity list.
Process Flow
The external payment process involves three parties: Your company, your customer, and the online payment service
provider. The online payment service provider offers online services for accepting electronic payments through a
variety of payment methods.
1. Your Customer Orders Goods
A customer has ordered goods from you using your webshop, and chosen to pay through a payment service
provider. Depending on your system set up, the order is either first saved in preparation so that a user can
review it and then release it, or it is automatically released, without being reviewed.
2. The System Releases the Sales Order
When the sales order is released, a payment with an external number is created in the system with payment
method External Payment. This payment has the status in Transfer. You can check the payment in
Receivables Customer Accounts Account Monitor .
3. You Process the Invoice
After goods are delivered or services are rendered, the invoicing process takes place. In the Customer
Invoicing work center, a sales employee of your company processes the invoice request. The invoice needs
to have the same number as the payment.
For more information on invoicing customers, see Quick Guide for Invoice Requests .
4. The System Does the Clearing
The system finds the item using the reference number and clears payment and invoice automatically.
5. You Create a Bank Statement for Your Service Provider Account
Periodically you will get the information from your payment service provider about the incoming payments
on your bank account. Go to Liquidity Management Bank Statements and create a new bank statement

for this account. In the All not Confirmed Items in Transit step, select the external payments which are
confirmed by the information of your payment service provider.
For more information, see Bank Statements.
6. The Customer Cancels the Order
Cancellation is possible either before or after goods/services have been rendered.
a. Before Delivery of Goods/Rendering of Services
If the sales order was not released in the system, you can simply delete it and cancel the payment directly
at the external service provider. Cancel directly with your service provider even if there is no sales order
in the system.
If the sales order is already released, you have to cancel the sales order and send a credit for the payment
to the external service provider. In addition, you have to clear the payment generated by the sales order
with the credited amount of the payment on the customer account monitor.
b. After Delivery of Goods/Rendering of Services
In this case you need to go through the standard return process: Create a goods receipt for the returned
goods, create a credit memo, credit the payment to the external service provider. In addition, you have
to clear the payment generated by the sales order with the credited amount of the payment on the
customer account monitor.
Period End Activity

In some countries, such as Germany, external payments that are received before goods or services are issued
and invoiced need special handling in your period-end reporting (such as separate reporting and inclusion in
your tax declaration amount).
For more information, see Period End Activity for External Payments [page 105].
5.1.5 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.
Prerequisites
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 [page 165].
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:
● 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 provider’s 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 provider’s 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!
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 customer’s
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.
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 company’s 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.
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 Actions
Reset Postpone before executing the payment.
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.
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 customer’s credit card
instead.
For more information, for example on payment proposals, see Automatic Incoming Payments.
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 and select Credit
Card from the list.
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 [page 144].
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 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

● 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.
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 [page 181].
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 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 provider’s 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
5.1.6 Postings for Bill of Exchange Receivables
Overview
Bill of Exchange (BoE) is a payment method used only in Spain, France, and Italy.
This document describes the postings in accounting for the BoE receivables scenario using any of the bill of exchange
payment methods. The related postings differ depending on the bill of exchange type – Collection or Discounting.
In Spain, you are legally required to post risk for BoE discounting transactions into a special G/L account (which is
known as Debts from Discounted Bills of Exchange in your solution) as a precaution. The risk should not be cleared
until the due date of the bill of exchange is reached.
The postings in accounting are the same regardless of the bill of exchange method (with acceptance, without
acceptance, or sole bill of exchange).

Prerequisites
● Both parties (your company and customer) must use Bill of Exchange (BoE) as a payment method
● Bill of exchange storage must be enabled for your bank. For more information, see Check Prerequisites in the
Tasks section of Quick Guide for Bill of Exchange Deposits [page 132]
● Check prerequisites for handling incoming payments. For more information, see Incoming Payments
G/L Postings for Bill of Exchange for Receivables
Process and Postings for Bill of Exchange Receivables – Collection
For the sake of simplicity, none of the examples include taxes.
1. After a customer invoice is released, an open receivable item is created and an account receivables item is
posted.
Postings for Bill of Exchange (Collection)
G/L Postings Debit Credit
Accounts Receivable (AR) 1000 EUR
Revenue 1000 EUR
2. The payment for the open receivable is initiated (manually or automatically), which uses the bill of exchange
(BoE) payment method.
Postings for Bill of Exchange (Collection) – Spain
Customer Bill of Exchange (AR) 1000 EUR
3. In the Bill of Exchange Deposits subview, you assign the BoE to a bill of exchange deposit. You choose the
Collection BoE type, which signifies that the bank will collect the bill of exchange on the due date. For more
information, see Quick Guide for Bill of Exchange Deposits [page 132].
You can assign multiple bills of exchange to the same deposit, but all of the bills of exchange must have
the same due date.
Postings for Bill of Exchange (Collection)
Trade Accounts Receivables, Bill of Exchange 1000 EUR

for Collection (AR)
4. To issue a bill of exchange deposit, that is, send the deposit to the bank, you first need to release it. The
resulting payment file is then sent to the bank and a posting is triggered in accounting. For more information
on releasing, see the Tasks section of the Quick Guide for Bill of Exchange Deposits.

When the payment file is received by your bank, the amount is credited to the relevant bank account. This
transaction is then visible in the subsequent bank statement.
5. At the due date of the bill of exchange (BoE), the risk from BoE is dissolved and you reverse the contingent
liability. In Spain, this results in a posting to cash in transit for collection. The following are the postings:
The proposed posting date is the same as the due date of the bills of exchange which are included in
the deposit.
Postings for Bill of Exchange (Collection) – Spain

for Collection (AR)
BoE Collection — Cash in Transit 1000 EUR
Postings for Bill of Exchange (Collection) – France and Italy
Customer Bill of Exchange for Collection (AR) 1000 EUR
Process and Postings for Bill of Exchange Receivables – Discounting

1. After a customer invoice is released, an open receivable item is created and an account receivables item is
posted.
Postings for Bill of Exchange (Discounting)
Revenue 1000 EUR
2. The payment for the open receivable is initiated (manually or automatically), which uses the bill of exchange
(BoE) payment method. The following are the related postings:
Postings for Bill of Exchange (Discounting)
3. In the Bill of Exchange Deposits subview, you assign the BoE to a bill of exchange deposit. You choose the
Discounting BoE type. For more information, see Quick Guide for Bill of Exchange Deposits [page 132]. The
related postings differ depending on the country.
Postings for Bill of Exchange (Discounting) – Italy and France
Customer Bill of Exchange for Discounting 1000 EUR

(AR)

Bill of Exchange for Discounting in Transit 1000 EUR
Postings for Bill of Exchange (Discounting) -– Spain
Bill of Exchange in Transit 1000 EUR

Discounted (AR)
Debts from Discounted Bills of Exchange 1000 EUR
4. To issue the bill of exchange deposit, you must first release it. The resulting payment file is sent to the bank.
When the file is received by your bank, the amount is credited to the relevant bank account. This transaction
is then visible in the subsequent bank statement.
5. At the due date of the bill of exchange, the risk from the bill of exchange is dissolved and you reverse the
contingent liability.
The proposed posting date is the same as the due date of the bills of exchange which are included in
the deposit.
Postings for Bill of Exchange (Discounting) – Italy and France
Trade Accounts Receivables, Bills of 1000 EUR

Exchange Discounted (AR)
Postings for Bill of Exchange (Discounting) – Spain

Discounted (AR)
Debts from Discounted Bills of Exchange 1000 EUR
Failed Bill of Exchange

If the customer does not pay, the bank will send back a file with the related failed bills of exchange. The related invoice,
which was marked as paid, must be reopened. The posting should then be made to the Unpaid Bill of Exchange
account, which is an accounts receivable account. The bill of exchange itself is not cancelled, but has a new status
of Failed and cannot be used for any other clearing.
Postings for Failed Bill of Exchange
Unpaid Bill of Exchange (AR) 1000 EUR

If the invoice is renegotiated, it can be paid by a new bill of exchange and, if so, the process of issuing a bill of exchange
starts again. If the unpaid bill of exchange was posted on a separate account, issuing the bill of exchange posts from
Unpaid Bill of Exchange instead of the Accounts Receivable.
5.1.7 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.
5.1.8 Foreign Payment Format
This document contains text that is relevant for Japan. To ensure that the system displays the correct text,
select Personalize My Settings . Select Onscreen Help and, under Country, choose Japan. Save your
settings and logout to ensure these changes are made.
5.2 Views
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.
Tasks
Create a New Payment

1. Click New Payment By , then choose the appropriate payment method. You can create
the following types of payments:
● Outgoing Bank Transfer or Outgoing Wire Transfer
● Outgoing Check
● Incoming Check or Multiple Checks

2. Enter the relevant details for the payment method you selected. These details vary
depending on the payment method selected.
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.
Create a New Outgoing Bank Transfer or Outgoing Wire 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 or Outgoing Wire Transfer.
3. Enter the relevant details for the transfer. The following fields are mandatory, as
indicated by an asterisk (*): Company ID, Payment Amount, Payee, and Payee Bank.
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.
4. Click Complete Bank Data . The system fills the Bank Account ID and Bank Name fields
automatically, if possible.
● To enter optional information, such as payment instructions, for example, or to
change the type of transfer, for example to international, click View All to display
all available fields.
● If you want to see the settings used by the system to complete your bank and
payment data, click You Can Also , and select Open Bank and Payment
Settings.
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 transfers. Your bank will inform you of the
payment instructions it offers and any additional fees they charge for using
them.
If the 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 transfer,
select the Create Payment Manually check box. You can also choose the bearer of
the charges arising from the transfer.
If you do not want to execute the 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.
You can preview the memo line of an electronic bank transfer by clicking
Preview , then Memo Line. To change the memo line configuration,
close the popup window, click on You Can Also and select Edit
Correspondence Profiles for Memo Line. You need to have access rights
to the Business Configuration work center.
For more information, see here.
● 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 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.
To create the file manually for transmission to the bank, proceed as follows:
1. In the Payment Monitor view, select the relevant 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 .
Create an Outgoing Check

You can also perform this task in the Payables work center, Supplier Account Monitor
view.
2. Click New Payment By , then Outgoing Check. The New Outgoing Check screen appears.
3. Enter the Company ID, Payment Amount, and Payee.
● To enter optional information, such as payment instructions, for example, click
View All to display all available fields.

Settings.
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 .
You can preview the memo line of your check by clicking Preview , then
Memo Line. To change the memo line configuration, close the popup window,
click on You Can Also and select Edit Correspondence Profiles for Memo
Line. You need to have access rights to the Business Configuration work
center.
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 , then Print
Check Form.
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
For more information, see Check Lots and Check Numbers for Outgoing Checks
[page 159].
Enter an Incoming Check or Multiple Checks

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.
By default a Date of Issue field is available on this screen. In scenarios where the
date of issue and date on which the check is presented vary and you want to enter
a cashing date, you can add the Earliest Cashing Date field via Personalization.
Once this field is added, the check can be present only on or after this cashing
date.
The Expected Value Date is the date on which the check amount is realized, and
this has to be added via personalization as well. The expected value date is
usually 3 days after the earliest cashing date.
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: Allows the user to add the check to the 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.
○ 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.
Monitor Payment Allocation Processing

For more information on this activity, see Monitoring Payment Allocation Processing
[page 164].
5.2.2 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
5.2.2 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 required for both incoming and outgoing payments. The system usually
performs both automatically. In some cases, the system cannot perform these processes and will create manual

payment allocation tasks or manual payment clearing tasks, which require user involvement. The various 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 in the Payment Clearing view of the Payables or Receivables work center,
for supplier or customer payments respectively.
Payment allocation 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 then payment and item
are cleared. The system uses business partner and payment reference information, such 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, payment allocation and payment clearing are performed automatically.
Manual Payment Allocation Scenarios

In some cases, the automatic payment allocation process described above is not possible. The various scenarios
where this might occur are outlined below:
● Missing customer or supplier information
● Incorrect electronic bank statement configuration
● Transaction charges on foreign payments
● Bank charges or interest in bank statement
Missing Customer or Supplier Information

Payments may be received with some customer or supplier information missing for a variety of reasons, for example
if a payment is received from a third-party payer paying an open invoice on behalf of a customer. This third party
may be a parent or subsidiary company of that customer, for example. If this payer is not recorded in the customer
master data record, manual allocation of the payment to the customer will be required. Similarly, 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.
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 may 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, 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 .
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, 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, 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 to 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.
Documentation is available on this topic that is specifically relevant for Japan. To ensure that the relevant
Help and, under Country choose Japan. Save your settings.
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

A payment may be received without reference to the open item(s) that are to be paid by the payment. Similarly,
business partners may process externally initiated outgoing payments from your company without including
payment reference information. Payment references may 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 then 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 may
be created if the payment difference exceeds the tolerance defined in your clearing strategy. You define a payment
tolerance 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 Received

Under certain circumstances, a payment may 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 payment.

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 occur only in extremely exceptional circumstances.
Reasons for Manual Tasks According to Payment Type
Payment Type Manual Payment Allocation Scenario Manual Payment Clearing Scenario
Incoming externally initiated (check or Missing customer or supplier information or All scenarios possible
bank transfer) incorrect electronic bank statement
configuration
Outgoing internally initiated (check or Incorrect electronic bank statement Payment difference
bank transfer) configuration
Outgoing externally initiated (direct Missing customer or supplier information Payment difference
debit)
For more information, see Payment Allocation and Clearing [page 99]
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
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.
Tasks
Allocate a Payment Manually

For more information on this task, see here.
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

For more information on this task, see here.
5.2.3 Petty Cash Quick Guide (Payment Management)
In the Petty Cash view, you can create and monitor petty cash for your company and also record cash receipts and
cash disbursements 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 cash receipts and cash disbursements 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.
Tasks
Create an Outgoing Cash Payment

For more information on this activity, see Create an Outgoing Cash Payment.
Enter an Incoming Cash Payment

For more information on this activity, see Enter an Incoming Cash Payment.
Transfer Cash
For more information on this activity, see Transfer Cash.

Monitor, Print, or Reverse 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 Cash Journal .
On the Petty Cash Journal: <Petty Cash Name> screen, 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. To print receipts for incoming payments, select the relevant payment and click
View . On the corresponding cash payment screen, click Print Receipt .
3. To reverse payments, select the relevant payment and click Reverse .
5.2.4 Check Deposits Quick Guide
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.
Business Background
Tasks
Check Prerequisites
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 the Master Data Quick Guide (in Liquidity
Management).
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.
Assign to Check Deposit

1. In the Payment Monitor view, select the required incoming check, and choose Actions
for Checks Assign to Deposit .
Alternatively, you can access this functionality by selecting an incoming check and then
choosing Edit .
2. In the Assign Checks to Deposit dialog box, enter an existing deposit ID, or click
New Check Deposit .
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 on the deposit ID.
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 deposit and choose Actions Release and Print Deposit Slip . You
can now send the 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
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 on the deposit ID. 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 Actions , then Delete.
5.2.5 Lockbox Batches Quick Guide
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.
Business Background
Tasks
Check Prerequisites
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 the Master Data Quick Guide (in Liquidity
Management).
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 Management Inbound Files .
2. Select your company from the company file register and choose New Inbound
File .
On the New Incoming File screen in the File Type field, choose Lockbox. In the 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 Erroneous .
For more information, see the File Management Quick Guide.

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 on its batch ID.
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 Actions , then
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
an updated version of the lockbox file. You can then import the new file into the
system.
5.2.6 Quick Guide for Bill of Exchange Deposits
The bill of exchange (BoE) payment method is used in Spain, France, and Italy only.
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.

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

Postings for Bill of Exchange Receivables

For more information, see Postings for Bill of Exchange Receivables [page 115]
Tasks
Check Prerequisites
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 .
3. 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.
4. Click Save , then Activate.
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.
When you select bill of exchange as a payment method, the validity date of
the bill of exchange is the same as the bank account to which the postings
are made. However, you can specify a separate validity period for the bill of
exchange independent to the corresponding bank account validity date.
3. Click Save and Close .
Assign Bills of Exchange to a Bill of Exchange Deposit

1. Go to the Payment Monitor view, select the required bill of exchange receivable (which
must have the status Ready for Deposit), and choose Actions for BoE Assign to
Deposit .
2. In the displayed window, enter the number of the bill of exchange deposit or select it
using the input help, and specify whether you want to use a deposit for collection or a
discounted bill. Confirm your selection. The status of the bills of exchange then changes
to Ready for Transfer.
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 change the assignment of the bill of exchange to a
different deposit, click Change Assignment to Deposit , enter the new bill of exchange
deposit ID (or select it using the input help) to which the bill of exchange will be
reassigned, and confirm your selection.
Release a Bill of Exchange Deposit

When you create a bill of exchange deposit, it has the status In Preparation. To be able, to send
the deposit to the bank, you first need to release it. This generates a file, which you can then
download and send to the bank.
Select the appropriate bill of exchange deposit and choose Actions Release .
Once you have released a bill of exchange deposit, you cannot delete it or assign bills
of exchange to it. You can only delete a bill of exchange deposit with the status In
Preparation by selecting the deposit and clicking Delete . Released bill of exchange
deposits can only be reversed.

Send a Bill of Exchange Deposit as a File to the Bank
1. Go to the Liquidity Management work center and choose File
Management Outbound Files .
2. Optional: If you want to check your bill of exchange deposit file prior to sending it, select
your deposit file with the status In Release. 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 outgoing file and click Edit .
Choose the Attachment tab, select the outgoing file and save it to your computer. You
can now send the file to the bank.
4. To indicate in the system that you have sent the file for the bill of exchange deposit to
the bank, select the outgoing file ID and choose Actions Release .
The status changes from In Release to Released for Transfer. This activity is only
performed for information purposes 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
outgong file 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 [page 181].
Reverse a Bill of Exchange Deposit

You can only reverse 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.
Reverse a Contingent Liability

You can only reverse a contingent liability on bill of exchange deposits with the status
Released. When a bill of exchange is sent to the bank, the system sets the Contingent Liability
Exists value on the bill of exchange deposit to Yes. The contingent liability remains on the G/
L account that corresponds to the bill of exchange deposit and allows for your company to be
liable to recourse should payment obligations not be fulfilled.
The contingent liability remains on the account until the due date of the bill of exchange is
reached or until you receive a task to reverse the contingent liability. When the due date is
reached, the liability no longer exists and you can therefore reverse the contingent liability
manually and update accounting.
1. Select the appropriate bill of exchange deposit and choose Actions Reverse
Contingent Liability . The Reverse Contingent Liability dialog box appears.
2. Enter the posting date. The default value displayed here corresponds to the due date
of the bills of exchange in the bill of exchange deposit, but you can overwrite this value.

All bills of exchange contained in a bill of exchange deposit have the same due
date.
3. The Contingent Liability Exists flag is set to No and a journal entry is posted in accounting
for the reversal of the contingent liability.
Undo Reversal of Contingent Liability

It is only possible to undo reversal of contingent liability for bills of exchange where an existing
contingent liability has been reversed (and the value of the Contingent Liability Exists field is
No). For example, if you inadvertently reverse a contingent liability on a bill of exchange
deposit, using this action you can undo this reversal.
1. Select the appropriate bill of exchange deposit and choose Actions Undo Reversal
of Contingent Liability . The dialog box appears.
2. Enter the posting date. The default value displayed here corresponds to the date on
which the reversal of contingent liability was posted to accounting. When you are
undoing a contingent liability reversal, it is recommended that you also post this action
to accounting on the same date as the reversal.
When you undo a reversal of contingent liability, the value of the Contingent Liability
Exists field is set to Yes again and a journal entry is posted in accounting for the bill of
exchange deposit.
Contingent liabilities do not exist on G/L accounts of bills of exchange that have
been upgraded from a previous version of your system. Therefore, it is not
possible to carry out Reverse Contingent Liability or Undo Reversal of Contingent
Liability actions on them. These bills of exchange are denoted in your system
using the Contingent Liability Relevant field.
5.2.7 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.

Business Background

Outgoing Payments
For more information, see Outgoing Payments.
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 .
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 .
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 File
Management Outbound Files .
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 cashin 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.

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.
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.
5.2.8 Remittance Advices Quick Guide
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.

Business Background
● Supplier Remittance Advices [page 11]
● Customer Remittance Advices [page 14]
● Electronic Submission of Outgoing Remittance Advices [page 16]
Tasks
Enter a Remittance Advice

For more information on this task, see Enter a Remittance Advice.
Reverse a Remittance Advice

1. Select the remittance advice that you want to reverse.
2. Click on the advice ID. On the Remittance Advice: ID screen, click View All.
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.
5.2.9 Clearing House Statements Quick Guide
You can access the Clearing House Statements view from the Payment Management work center. In the Clearing
House Statements view you can upload clearing house statements and update the items in the system. You can also
view the status and transaction details of your uploaded clearing house statements, and reverse incorrect clearing
house statements.
Clearing house statements can be generated by your service provider for one or more of your companies. Such
statements contain a list of individual transactions, which can be matched up with the payments In Transfer you
have listed in the system.
Clearing house statements can be generated for all payments that are created from the SAP Business
ByDesign system. For the payments that originate externally like point of sales transactions, it is not possible
to update the status using the clearing house statement.
Business Background
Customer Payments by Credit Card

For more information, see Customer Payments by Credit Card [page 108].

Tasks
Upload a Clearing House Statement

For more information, see Upload a Clearing House Statement.
5.2.10 Payment Media Runs Quick Guide
In the Payment Media Runs subview, you can perform automatic runs, which generate payment media for bank
transfers, direct debits, and checks. 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.
Business Background
Tasks
Create a Payment Media Run

For more information on this task, see Create a Payment Media Run.
Activate the Payment Media Run

1. In the Payment Media Runs view, select a payment media run with the status In
Preparation and click Edit .
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 Set to Active .
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. 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 and Close .
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. 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
Cancel Job .
Display Execution Details

1. If you want to view the details of runs that have already been executed, select the
appropriate payment media run and check the details in the 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.
5.2.11 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.
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, you 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 Payment Deposit Run

1. In the Periodic Tasks view in the Payment Deposit Runs subview, choose New
Payment Deposit Run.
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 .
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 .
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.

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.
5.2.12 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.
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, you 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
New Credit Card Settlement Run.
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.
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 .
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.
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.

5.2.13 Foreign Currency Remeasurement for Cash Quick Guide
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.
You can access the Foreign Currency Remeasurement for Cash subview from the Payment Management work center
under Periodic Tasks.
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 [page 26].
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
be fulfilled:

● 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 , then Foreign
Currency Remeasurement for Cash Run.
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 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.
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
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 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 .
Review the result of the run in Payment Management work center Work view. Edit
the tasks accordingly, click Actions and select Complete. The run now appears
in the list of finished foreign currency remeasurement runs.
Perform Reversal of Foreign Currency Remeasurement for Cash
postings, you will see an error message saying that reversal is not possible because the

Select the remeasurement run you want to reverse. The run must be an Update run
You can only reverse the Foreign Currency Remeasurement runs backwards and
consecutively. This means that if you have executed multiple Foreign Currency
Remeasurement runs with the same data, you have to reverse the last run first
and go backwards.
2. Start or schedule reversal run

Click Reverse , enter a Run Description and schedule it to start immediately or a later
point in time.
Review the results of the run in Payment Management work center Work view. Edit the
tasks accordingly, click Actions and select Complete.
3. The reversed run now appears in the list of finished foreign currency remeasurement
runs.
4. Result
As a result of remeasurement 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 remeasurement run is scheduled to a later time,
it is listed in the Payment Management 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.
Display and Check Log for Foreign Currency Remeasurement

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 the foreign currency
remeasurement has been performed. To do this, choose the relevant foreign currency
remeasurement.
2. Check the Log
● 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.
● Data Selection
Shows the information that you entered at the start of the foreign currency
remeasurement run.
● Messages
● Postings
● Remeasured Balances
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 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
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.

5.2.14 Quick Guide for Direct Debit Rejection Runs
Documentation is available on this topic that is specifically relevant for Switzerland. To ensure that the relevant
Help and, under Country, choose Switzerland. Save your settings and logout to ensure these changes are
made.
5.3 Reports
5.3.1 Payment Statistics - Customers
Overview
The report provides an overview of the payment behavior of customers towards your company for a specific period.
Features
Running the Report

an asterisk (*).
Additional information is available for the following selected variable:
● Proposed Posting Date

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.

See Also
● Reports View
5.3.2 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.
Features
Running the Report

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.
● 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:

● 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 [page 159]

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 Cash Position view.
Features
The system calculates the cash position by transaction source for your company.
You can drilldown from cash position line items the Cash Position – Transaction Details report by clicking on a
transaction source, for example Customer Receipts, and choosing Transaction Details.
You can also 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. You can
access this activity from the from the Common Tasks pane of the Liquidity Management work center.
● The outgoing bank transfer feature allows you to initiate payments to third party bank accounts, to pay
outstanding bills or expenses. You can access this activity from the Common Tasks pane of the Liquidity
Management work center or from the Payment Monitor work center.
● You may receive notice of intra-day payment activity in the form of a bank payment advice. You can record
these, so that they are reflected in the cash position, using the Bank Payment Advices view.
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, click Refresh.
Example
Daniel Dough is the cash manager for Almika Inc. He wishes to check the cash position for the current day. He opens
the Liquidity Management Cash Position view.
He can see that there is a cash deficit of 10,000 Euro in the company’s 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

Liquidity Management P U B L I C • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 153
the debit interest on the deficit. He selects New Bank-to-Bank Transfer from the Common Tasks pane. He completes
the activity and releases the transfer.
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 the Bank of America.
6.1.2 Bank Directory and Bank Directory Updates
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 view. For
information about how to complete this task, see the Master Data Quick Guide [page 175].
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 [page 173]
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 Bank Directory view. For information
about how to complete this task, see the Master Data Quick Guide [page 175].
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

154 © 2016 SAP SE or an SAP affiliate company. All rights reserved. • P U B L I C Liquidity Management
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. Authorizations are granted in the Application and User Management work center.
Updating the Bank Directory

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 have specified in business configuration that you want to use multiple scripts, you can represent certain
master data, such as name and address data in different scripts. The Script field is available and to select a
script other than the default, choose Add . In the dialog box that appears, the scripts available for selection
are those which have been set as Active in business configuration. Select the required script, and choose
OK . You can also delete scripts which have not been specified (in business configuration) as default and add
again if required.
For more information, see Using Multiple Scripts.
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.
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.
See Also
SEPA Migration Guide
6.1.3 Bank Statements
Overview
The Liquidity Management Bank Statements view shows you the current status of your bank accounts as
provided by your bank either electronically or in a paper statement.
The following configuration activities are part of your system configuration:
● 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 phase, choose Cash Flow Management > Import Formats for Bank Statements.
● Release Bank Statements
By default, bank statements uploaded as electronic bank statement files must be approved before they are
released. But you can change this setting for each company bank account.
Viewing Bank Statements

Bank statements are entered and updated in the system in the Liquidity Management Bank Statements view.
You can choose to display today's bank statements from the list, but this data is not part of the list This Month’s
Bank Statements.
After you release a bank statement, the line items it contains are matched to open payment allocations by
automatically creating a payment allocation for each bank statement item and then releasing these payment
allocations.
If the processing finishes with errors or not at all, you can restart bank statement processing or release the payment
allocations individually in the Payment Management work center. There you can also process individual payment
allocation tasks if a payment allocation cannot be released, for example due to an incorrect posting date or
incomplete business partner data.
You can also choose to view bank statements that are in preparation, or ones that have been reversed or voided.
Importing and Editing Bank Statements

You can import bank statements either manually by entering the information from a paper bank statement in the
Bank Statements view, or upload an electronic statement in the Inbound Files view.
You can only approve or reject automatically created bank statements, but not edit them.
Bank Statement Integration

The system saves bank account statements and then posts them in the general ledger according to the account
determination rules.
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.
For example, when a bank transfer is completed and released, a posting is made on the bank clearing account. You
then receive a statement from your bank, which shows the corresponding payment line item. When this bank
statement is uploaded and released, this is reflected in the bank account, which then offsets the clearing account
posting. The status of the bank transfer in the system then changes from In Preparation to Confirmed.
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.
For more information see Payment Allocation and Clearing [page 99] .

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 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. 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 in the Bank Statements view under Details.
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 , only the payment with the status Confirmed are
shown. If needed, you can restart the process by clicking Restart Bank Statement Processing.
6.1.4 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
bank-to-bank transfers, which are used to transfer funds between company bank accounts. These are used mainly
for transfers relating to liquidity management.
Your administrator can create additional country groups, modify your payment formats (in case your company has
a specialized arrangement with the bank regarding payment formats), and choose what fields to include in your
correspondence forms in your payment correspondence profiles for outgoing bank transfers and wire transfers in
your system configuration. Your administrator can edit these settings in the Business Configuration work center in
the Outgoing Bank Transfers and Outgoing Wire Transfers configuration activities.
Features
Bank transfers and bank-to-bank transfers can be created under Common Tasks in the Liquidity Management work
center. You can also create a new outgoing bank or bank-to-bank transfer in the Payment Monitor view.
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 with 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 payment file media run will create the file automatically, or you can create the payment file created manually in
the Outbound Files subview of the File Management work center view by clicking Create Payment File .
6.1.5 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
Cash Position and Liquidity Forecast
The new bank payment advice is shown in the cash position and liquidity forecast in the Cash Position view. You may
need to refresh the view to show 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 shown in the cash position.
6.1.6 Check Lots and Check Numbers for Outgoing Checks
Check lots and the check number ranges are shown in the Liquidity Management work center under Master
Data My Banks . Select your bank and choose Edit Bank Accounts Check Lot .
Automatic Check Number Assignment

So that the system can automatically assign check numbers, you must firstcreate a check lot for the appropriate
bank account in the master data of the bank, and 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 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.
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 Master Data My Banks and select the bank that you want to edit.
2. Go to 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.
6.1.7 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
You have created your bank directory in the Master Data Bank Directory view. For information about creating
the bank directory, see About the Bank Directory [page 154].
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.
System Configuration 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 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
Global settings for Payments to change the prioritization. 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 the alternate account number in the Additional
Name field.
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 [page 168].
Documentation is available on this topic that is specifically relevant for Austria. To ensure that the
Onscreen Help and, under Country choose Austria. Save your settings.
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
[page 169].
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.
● Currency Restriction
To restrict transactions to specific currencies, specify those currencies on the Currency Restriction tab.
Simply choose Add Row and select the appropriate currencies. The bank account currency is always allowed
and does not need to be added, unless you want it to be the only currency allowed– in this case you must
enter it here.
● Payment Methods
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 account’s 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.
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 items–the bank statement
item and the outgoing check, bank transfer, or check deposit. This process is started automatically each minute.
After the items have been allocated successfully, only one payment is displayed in the payment monitor–for example,
an outgoing check with the status Confirmed.
To track the payment allocation processing status of the bank statement, proceed as follows:
1. In the Liquidity Management work center, choose the Bank Statements view.
2. Select the relevant bank statement.
3. The Postprocessing column of the relevant bank statement shows the following phases:
● Not Required
● In Process
● Required
● Not Relevant
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, payments with the status Not
Relevant can be viewed in the payment monitor.
To restart the process in case technical problems cause processing to be terminated, choose
Restart Payment Allocation Processing .
6.1.9 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 subview and click New , then Clearing House.
Enter the required data and click Save .
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.
Enter the clearing house company’s 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.
6.1.10 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 Format
Germany, United Kingdom, China All MT940 formats
United States, Canada, Australia BAI2
France AFB
Austria, Switzerland, Netherlands MT940
Mexico BBVA
Italy CBI
Spain CSB
New Zealand PC Business Banking — BNZ
Japan Zenginkyo (Japanese Bankers Association)
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 specific to your relationship.

6.1.11 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 Format
France AFB Domestic Format

AFB Foreign Format
VCOM Bill of Exchange
AFB Bill of Exchange Deposit
AFB Bill of Exchange Cashing Response
Germany DTAUS/DTIZV Domestic Format

DTAZV Foreign Format
SEPA Credit Transfer
United Kingdom BACS

HSBC
Lloyds Bank
United States ACH CTX

ACH CCD
Austria PAYMUL IZV Domestic Format

PAYMUL AZV Foreign Format
SEPA Direct Debit
Switzerland DTA
EZAG
ISO20022
PostFinance Direct Debit
Bank Direct Debit Outgoing File (LSV+)
Canada Standard 005
Australia BECS
Mexico BBVA
Payment format for Banco Nacional de México (Banamex)
Italy CBI Domestic and Foreign Formats

CBI Bill of Exchange Deposit
SEPA Direct Debit
Denmark PAYMUL Domestic and Foreign Formats

MT940
SEPA Direct Debit
PBS Direct Debit

Spain CSB34 Bank Transfer
CSB19, CSB58, CSB32 (Bill of Exchange Deposit Files)
Netherlands BTL91 Foreign Format

CLIEOP03 Domestic Format
ISO20022
SEPA Direct Debit
New Zealand PCBB Domestic Format
Japan JP Foreign Payment Format

JP Domestic Payment Format (Zenginkyo)
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
6.1.12 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:
● Outgoing Wire Transfer
● Outgoing Bank Transfer
● Outgoing Check
● Bill of Exchange Payable
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 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.
6.1.13 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
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).
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.
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, see Forecast Planning Item [page 173].
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.
6.1.14 Bank Directory Upload for Six Interbank Clearing – Switzerland
Help and, under Country, choose Switzerland. Save your settings and logout to ensure these changes are
made.
6.1.15 Forecast Planning Item
Overview
You can include an expected liquidity item that is not captured by the system by creating a new forecast planning
item.
To display your forecast planning items, go to the Liquidity Management work center and choose Liquidity
Forecasts Forecast Planning Items .
Features
To create a new forecast planning, proceed as follows:
1. Click New , then Forecast Planning Item.

2. Enter the relevant data.
In the Cash Flow Direction field, you select Increase for a future receivable and Decrease for a future payable.
Beyond the date you enter in the Expiration Date field, the forecast planning item is no longer captured by the
liquidity forecast.
3. Save and release the forecast planning item.
Alternatively, you can release the forecast planning item at a later point in time. To do so, select the forecast
planning item, which has the status In Preparation, and choose Actions Release Forecast Item .
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 do
so, go to the Liquidity Forecasts view. Select the relevant liquidity forecast and choose Actions Refresh
Planning Items . 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.
You can only refresh a forecast on the same day that the forecast was created.
Example
Daniel Dough is the cash manager for Almika Inc. He has received notice of future human resource expenses via
future planning information from the human resources department.
He opens the Liquidity Forecasts view and creates a new forecast planning item.
After saving and 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.
6.1.16 ISR Payments - Switzerland
Overview
Inpayment slip with reference (ISR) is one of the main payment methods in Switzerland. It is a service provided by
Swiss PostFinance and by Swiss banks. An ISR payment order requires that all invoices must have an inpayment
slip attached; this slip gives the supplier's bank details including a special ISR reference number.
Help and, under Country choose Switzerland. Save your settings.

6.1.17 Payment Processing Using ISR — Switzerland
Help and, under Country choose Switzerland. Save your settings.
6.2 Views
6.2.1 Quick Guide for Master Data (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 [page 161].
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 [page 154] .
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 [page 165].
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 [page 168].
Manual Payment Formats

When you create an outgoing payment the system needs to communicate this information to the bank.
For more information, see Manual Payment Formats.
Tasks
Update a Bank Record

1. From the My Banks view select the bank that you want to update, choose Edit Bank
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 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
[page 169].
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. Save and close the updated bank records. To open the bank from the list in the My
Banks subview, choose the appropriate ID from the My Bank ID column.
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
[page 161].
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.
If you have specified in business configuration that you want to use multiple
scripts, you can represent certain master data, such as name and address data
in different scripts. The Script field is available and to select a script other than
the default, choose Add . In the dialog box that appears, the scripts available
for selection are those which have been set as Active in business configuration.
Select the required script, and choose OK . You can also delete scripts which
have not been specified (in business configuration) as default and add again if
required.
For more information, see Using Multiple Scripts.
4. To display all the fields that can be edited, click View All. The following additional
information is displayed:
● 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.
● On the Assigned Branches tab, you can enter individual contact information for
multiple branches.
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. Click 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 XML, Accuity XML (ZIP), Deutsche Bundesbank,
or SAP Template.
To upload a bank directory file from a provider not listed in the dropdown list for the
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.
On selecting CH SIX Paynet, you can only upload the Bank Directory file in an
ASCII ZIP or unzipped format. It is not possible to upload the file in a Microsoft
Excel format. The files uploaded in ASCII format will fill only Headquarters and
Main Branch details, and not Branch details, (column G ad. BC Type in the
Microsoft Excel format).

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 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.
You should create only one check storage for each company.
● If the check storage is to be used as a lockbox, choose Bank.
You should 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 [page 159].
Create Petty Cash

1. Click New , then New 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. If you want to assign responsibility for the new petty cash fund to a specific
person, enter their name in the Responsible Employee field. If you want this person to
be the only person allowed to work with this petty cash fund, select the Restricted
Authorization checkbox as well.
2. Click Save .
If you want to process your cash payments in different currencies, you need to create
additional petty cash funds.

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.
6.2.2 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.
For more information, see Cash Position [page 153].
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.

Tasks
Create a new Bank-to-Bank Transfer

1. From the Common Tasks area, select New Bank-to-Bank Transfer.
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.
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.
6.2.3 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.
For more information, see Bank Statements.

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.
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 [page 167].
Bank Payment Advice
6.2.3 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
Cash Position and Liquidity Forecast
The new bank payment advice is shown in the cash position and liquidity forecast in the Cash Position view. You may
need to refresh the view to show 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 shown in the cash position.
For more information, see Bank Payment Advice [page 159].
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. To download the file, choose
Download , then save the file to your computer.
You can also download the file by clicking Download File from the Outbound
Files overview screen.
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.
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 and choosing
Mark as Erroneous.

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 statement’s Statement Date is not before the previously entered bank
statement’s 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 statement’s 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.
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 .
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.
6.2.4 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
● Bank Statements [page 156]
Tasks
Upload a Bank Statement

1. In the Bank Statements view, click New Bank Statement Upload .
2. On the New Incoming File screen, select your file type from the list and the sender bank
from the Bank ID value help.
3. In the Attachments section below, click Add File and enter the file data. Optionally,
you can enter a title and specify a document type. Click Add .
clicking View .
4. To import and save the file, click Start File Upload .

5. You now see your bank statement in the Inbound Files view, with the status In
Process. If you have accidentally uploaded the incorrect file, you can click on the file ID
and select a new one. Otherwise you can confirm the bank statement file by clicking
Actions and then Mark as Confirmed. The bank statement file should now have the
status Finished.
You can also mark a file as erroneous by choosing Actions and choosing
Mark as Erroneous.
If your bank statement file finishes with the status Error in Processing, refer to
the corresponding error messages to determine the problem.

Manually Enter a Bank Statement
1. Click New Bank Statement and enter the required data.
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. Click Next to navigate to the Select Items step.

In this step you can see internally 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 step 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.
Click Next .
If the Advice checkbox 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. You can 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 values for the Bank Charges Amount, Debit Amount, and Credit Amount columns
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, click Add Row . You enter values in the Payment Method,
Customer/Supplier ID, Invoice ID, Bank Charges Amount, and the Debit Amount, or
Credit Amount columns as appropriate.
Click Next .
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. To save and release the
bank statement, click Post .
5. Click Close to return to the Bank Statements 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.
6.2.5 Payment Monitor Quick Guide

You can access the Payment Monitor view from the Payment Management work center or from the Liquidity
Tasks
Create a New Payment

1. Click New Payment By , then choose the appropriate payment method. You can create
the following types of payments:
● Outgoing Bank Transfer or Outgoing Wire Transfer
● Outgoing Check
● Incoming Check or Multiple Checks
2. Enter the relevant details for the payment method you selected. These details vary
depending on the payment method selected.
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.
Create a New Outgoing Bank Transfer or Outgoing Wire Transfer

You can also perform this task in the Payables work center, Supplier Account
Monitor view.
2. Click New Payment By , then Outgoing Bank Transfer or Outgoing Wire Transfer.
3. Enter the relevant details for the transfer. The following fields are mandatory, as
indicated by an asterisk (*): Company ID, Payment Amount, Payee, and Payee Bank.
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.
● To enter optional information, such as payment instructions, for example, or to
change the type of transfer, for example to international, click View All to display
all available fields.
Settings.

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 transfers. Your bank will inform you of the
payment instructions it offers and any additional fees they charge for using
them.
If the 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 transfer,
select the Create Payment Manually check box. You can also choose the bearer of
the charges arising from the transfer.
If you do not want to execute the 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.
You can preview the memo line of an electronic bank transfer by clicking
Preview , then Memo Line. To change the memo line configuration,
close the popup window, click on You Can Also and select Edit
Correspondence Profiles for Memo Line. You need to have access rights
to the Business Configuration work center.
● 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 transfer is displayed in the Payment Monitor work center view with the
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.
To create the file manually for transmission to the bank, proceed as follows:
1. In the Payment Monitor view, select the relevant 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 .
Create an Outgoing Check

You can also perform this task in the Payables work center, Supplier Account Monitor
view.
2. Click New Payment By , then Outgoing Check. The New Outgoing Check screen appears.
3. Enter the Company ID, Payment Amount, and Payee.
● To enter optional information, such as payment instructions, for example, click
View All to display all available fields.
Settings.
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 .
You can preview the memo line of your check by clicking Preview , then
Memo Line. To change the memo line configuration, close the popup window,
click on You Can Also and select Edit Correspondence Profiles for Memo
Line. You need to have access rights to the Business Configuration work
center.
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 , then Print
Check Form.
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
For more information, see Check Lots and Check Numbers for Outgoing Checks [page 159].
Enter an Incoming Check or Multiple Checks

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.
By default a Date of Issue field is available on this screen. In scenarios where the
date of issue and date on which the check is presented vary and you want to enter
a cashing date, you can add the Earliest Cashing Date field via Personalization.
Once this field is added, the check can be present only on or after this cashing
date.
The Expected Value Date is the date on which the check amount is realized, and
this has to be added via personalization as well. The expected value date is
usually 3 days after the earliest cashing date.
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: Allows the user to add the check to the 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.
○ 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.
Monitor Payment Allocation Processing

For more information on this activity, see Monitoring Payment Allocation Processing
[page 164].
6.2.6 Bank Payment Advices Quick Guide
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 company’s
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 Advice [page 159]
Tasks
Create a New Payment Advice

1. Click New , then Bank Payment Advice.
You can also create a new payment advice using the New Bank Payment
Advice common task from the Common Tasks area.
2. In the Advice Type field, select either Bank Credit Advice or Bank Debit Advice.
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.
4. If the advice represents an existing payment, select the Posting Advice 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. 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 Posting
Date field. If you do not enter a value in this field, the system automatically enters the
advice date.
The posting 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 your customer/
supplier in the External Advice ID field.
8. Under Bank Data enter the customer/supplier name and bank details, if applicable.
9. In the Memo Line field, you can enter a memo line, if required.
10. To release the payment advice, click Release.
6.2.7 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

For more information, see Payment Monitor Quick Guide [page 119].
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 [page 181]
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.
For more information on uploading an inbound file, see File Management Quick Guide
[page 181]
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 customer’s 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 [page 119].
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.
6.2.8 Liquidity Forecasts Quick Guide
You can access the Liquidity Forecasts view, the Liquidity Forecast Runs view and the Forecast Planning 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.
Business Background
The liquidity forecast displays expected cash inflows and outflows for an upcoming period of time. For more
information, see the content entitled Liquidity Forecast in the Help Center.
Tasks
Create and Refresh the Liquidity Forecast

For information about this task, see Create and Refresh the Liquidity Forecast.

6.3 Reports
6.3.1 Bank Statement Item Details
Overview
Shows the details of all the items in a bank statement including the payment reference and the item that the bank
statement item has cleared in the system.
Features
Running the Report

Before running the report you can specify the data you want to see by making value selections for variables. You
asterisk (*).For more information about the standard variables, see Overview of Reports in Financial Management.

The report displays details for all the items in a bank statement. Based on your selections, you can find the details
of payment method, business partner details, open item ID reference.
To further analyze data in this report, you can drag characteristics to rows and columns.
You can navigate to the business partner master data from the report.
See Also
Reports View
Overview of Reports in Financial Management
Overview of Data Sources in Financial Management
6.3.2 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 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.
Features
Running the Report

asterisk (*).
● 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.
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 company’s
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.
● 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.
See also
● Reports View

6.3.3 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.
Features
Running the Report

asterisk (*).
● Company
● 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 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 company’s
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.
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.

○ Company
○ Bank
○ Cash
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
● Reports View
6.3.4 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 company’s 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
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.
Features
Running the Report

asterisk (*).
The most important variables are explained below.
● Company
● 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.

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 information is grouped into the following categories:
● 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.
○ Bank Account ID
○ Company
○ Value Date Week
○ Value Date Month
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
● Reports View
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
6.3.5 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
each week of the selected time period.
● Liquidity Forecast by Payment Method Monthly
each month of the selected time period.
Prerequisites
using the report. For more information on how to do so see Create and Refresh the Forecast.
Features
Running the Report

asterisk (*).
● Company
● Time Period

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.
● 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.
● 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

○ Bank Account ID
○ Company
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
6.3.6 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)
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
● 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
using the report.
ensure that all available bank statements have been uploaded into the system. This ensures that the liquidity forecast
is as accurate as possible.
Features
Running the Report

asterisk (*).
● Company
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 forecast’s 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
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.

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.

○ 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.
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
see Liquidity Forecast
6.3.7 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.
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
● 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
using the report.
Features
Running the Report

asterisk (*).
● Company
● Time Period
Forecast Profiles.


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.
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.
○ Bank Account ID
○ Company
○ Expected Value Date
○ Value Date Week
○ Value Date Month
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

7 Tax Management
7.1.1 Tax Management Work Center
The Tax Management work center helps you to create the following tax returns:
● Advance Returns for VAT and Annual VAT Returns
● EC Sales Lists
● Withholding Tax Returns
● Sales and Use Tax Returns
Corporate income tax, employment tax, trade tax, or other types of use tax are not covered in the Tax
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 that 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
payment-relevant tax return. To get an overview of the open or reported tax items in a particular 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 .
7.1.2 Tax Returns
7.1.2.1 Tax Register
The system uses the tax register to store all tax items and tax adjustment items that have been entered manually
or entered automatically as a result of tax-relevant business transactions. 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 not yet submitted. If the Reported status
is set for a tax item, that tax item is not included in the tax return run.

Tax Management P U B L I C • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 211
For each tax item, the journal entry type, journal entry ID, business partner, tax base amount, transaction date, and
tax due date [page 214] are defined. In contrast to the tax subledger, the tax register does not consider tax entries
or posting data.
It is not advisable to make tax entries directly in the General Ledger work center, because these entries are
not entered in the tax register. You would have to manually add the tax items posted in the general ledger into
the return forms for submission 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 can 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
displayed.
● In addition to the tax codes predefined in the system, you can create other tax codes and assign tax events
predefined by SAP. These settings can be viewed in the fine-tuning settings under Taxes on Goods and
Services Define Tax Codes .
● 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.
7.1.2.3 Example Scenario for Tax Returns
This example scenario describes the typical steps from entering business transactions 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
Enter invoice documents in the Customer Invoicing work center. The system applies the defined tax
determination logic to 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 are transferred to the tax register.
2. Perform Checks Before the Tax Return Run

212 © 2016 SAP SE or an SAP affiliate company. All rights reserved. • P U B L I C Tax Management
It is advisable to 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
differences have arisen for technical reasons.
2. Check whether any open tax items exist with a posting date after the reporting period. This check
eliminates any balance differences in the tax accounts. 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 any open tax items exist with a tax due date after the reporting period. This check
eliminates any balance amounts in the tax accounts. 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.
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 further to the source
document.
3. Execute Tax Return Run
In the Tax Management work center, create a tax return using 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 relevant fields in the tax form.
To ensure 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 and Send Tax Data

Select the tax return created in the system and check that the tax data is correct. Then send the data to the
tax authority.
5. Release Tax Return
Once you have sent the tax data to the tax authority, select the tax return in the system and click Release .
This results in the following:
● The status of the tax return in the system changes from In Preparation to Reported.
● The relevant tax items assume 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 [page 219]

7.1.2.4 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. The following exceptions exist:
● 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.
● 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. This setting is made in the
business configuration activity 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.
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.
● For 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: For an incoming or outgoing payment 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 [page 156].
● 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: For an incoming check, the system uses the Posting Date as the tax due date. For an outgoing check, the
system uses the Date of Issue as the tax due date.
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: For an incoming cash payment, the system uses the Receipt Date as the tax due date. For an outgoing
cash payment, the system uses the Payment Date as the tax due date.
Travel and expenses: For 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: For a debit or credit entered in the Receivables work center using the customer account monitor, the
system uses the posting date as the tax due date.
Tax prepayment: For 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: For 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.
Cancellation: For 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.
7.1.2.5 Tax Reporting
Documentation is available on this topic that is specifically relevant for the following countries: Austria,
Australia, Canada, China, Denmark, France, India, Italy, Japan, Mexico, Netherlands, New Zealand, Spain,
South Africa, Switzerland, and UK. To ensure that the relevant country-specific document version is displayed,
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.

7.1.2.6 Retroactive Reporting of Tax Items
Overview
You have three options for reporting open tax items to your tax authority retroactively.
● You 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).
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.
7.1.2.7 Chamber Contribution Fee Calculation – Austria
7.1.2.8 Import of Services – India
Documentation is available on this topic that is specifically relevant for India. To ensure that the relevant
Help and, under Country choose India. Save your settings.
7.1.2.9 Challan Processing – India

7.1.2.10 Import of Goods – India
7.1.2.11 Prepayment of VAT – India
7.1.2.12 Purchase of Capital Goods – India
7.1.2.13 Separate Payment of CST and VAT – India
7.1.2.14 Service Tax Returns – India

7.1.2.15 Tax Abatement – India
7.1.2.16 Unregistered Dealer Purchase – India
7.1.2.17 Withholding Tax 27Q – India
7.1.2.18 Withholding Tax Returns – India
7.1.2.19 Withholding Tax Vendor Certificate (37– A) – Mexico
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Help and, under Country choose Mexico. Save your settings.

7.1.2.20 Import of Goods - 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
7.1.2.21 Intracompany Stock Transfer – India
7.1.2.22 Excise Tax — India
7.1.3 Tax Payments
7.1.3.1 Example Scenario for Tax Payments
This example scenario describes 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 in the payment is consistent, a task Approve Tax Payment is sent to the approver.
4. If the approver approves this payment:
● The payment assumes 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 assumes the status Completed.

5. The amount to be transferred to the tax authority is now in the Payment Management work center under
Payment Monitor with the status Ready for Transfer.
For more information, see the Quick Guide for Tax Payments.
7.1.4 Tax Transactions and Tax Postings
7.1.4.1 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 service or goods exclusively for
private consumption or use. A distinction is made between deliveries that are free of charge and other services that
are free of charge.
● 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.
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 Credit
Other Revenue Reserves (Account Type: EQUITY)
Travel Expenses (Account Type: COSEXP)
Value-Added Tax (Account Type: TAX)

Entering Tax Manually
Account Determination Debit Credit Tax Code Tax Amount

Group
Z-1000 – Other 119

Revenue Reserves
A-7100 – Travel 100 Z1 – Services Granted 19

Expenses Free of Charge
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 Credit
Office Supplies (Account Type: COSEXP)

Group
Z-1000 – Other 119

Revenue Reserves
A-7420 – Office 100 Z2 – Goods Granted 19

Supplies Free of Charge
3. Posting Example: Warehouse Inventory Goods Granted Free of Charge
Debit Credit
Costs for Finished Goods (Account Type: COSEXP)

Group
Z-1000 – Other 119

Revenue Reserves
Z-2000 – Costs for 100 Z2 – Goods Granted 19

Finished Goods Free of Charge

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 Credit
Costs for Finished Goods (Account Type: COSEXP)
Finished Goods (Account Type: INV)
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 Credit
Finished Goods (Account Type: INV)
In 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 Configuration of
Account Determination for Business Transactions. The following sections only relate to business transaction-
specific processes and settings.
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 Account Type
Examples: Office Supplies, Gifts, Telephone and COSEXP – Costs/Expenses

Communications
Examples: Finished Goods and Merchandise, Stock of Raw INV – Warehouse Inventory
Materials, Unfinished Goods
Examples: Subscribed Capital, Other Revenue Reserves 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 Chart of Accounts, Financial Reporting Structures, Account Determination Maintain
Account Determination Groups and then Subledgers General Ledger Group for Other
Payables Add Row . Specify a group number (such as Z–1000) 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 Group Type
General Ledger Groups for Other Payables
Costs subledger Groups for General Expenses
Inventories subledger Groups for Materials
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 . Go 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 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 [page 212].
To define tax codes for goods and services granted free of charge, use the following tax events:
● 311 - Goods delivered free of charge
● 350 - Services provided free of charge
These transactions will therefore also be displayed automatically in the correct field of the annual VAT report.
7.1.4.2 Postings for Down Payments (Gross Method)
Down Payments Made

You enter down payment requests for down payments made 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 the creation of the final invoice, the system proposes for clearing all existing down payments made to the supplier
on the Down Payments tab. 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 [page 214].
Posting Example
1. You post the outgoing bank transfer for your down payment of 1000 EUR:
Down Payments Made 1000
Input Tax 190
Credit Bank 1190
2. You enter the final invoice (supplier invoice):
Expense 3000
Input Tax 570
Credit Payables 3570
3. You assign the down payment to the final invoice (clearing):
Payables 1190
Credit Down Payments Made 1000
Credit Input Tax 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 [page 211] and in the tax ledger.
Down Payments Received

Posting Example
1. You enter the down payment request from 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
[page 61] and Open Items Receivables [page 60].
2. You post the receipt of a down payment:
Debit Cash Receipt 20
Credit Down Payments Received 16,81
Credit VAT 19% 3,19
3. You enter the final invoice (customer invoice):
Receivables 59,58

Credit Revenue 50,07
Credit VAT 19% 9,51
4. You assign the down payment to the final invoice (clearing):
Down Payments 16,81
Debit VAT 19% 3,19
Credit Receivables 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 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, go 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.
7.1.4.3 Intra-Community Movement
Intra-community movement concerns the intra-enterprise delivery of goods between two countries in the European
Union. Intra-community goods deliveries must be recorded in EC sales lists and reported to the German tax
authorities.
Manual VAT Entries

To enable the calculation of tax for delivery to another EU country, you have to make a manual tax entry in the Tax
Management work center. 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 Debit Credit Tax codes Tax amount
Z — 9999 100 507 — Intra- 0

Clearing Account - Community Delivery
Manual Postings
Z — 9999 100 5 — Intra-Community 0

Clearing Account - Acquisition (standard
Manual Postings rate)
3. To make the posting to the tax accounts and enter the data in the tax register, click Post .

7.1.4.4 Taxable Business Transactions Abroad
Tax returns and tax payments resulting from them are only supported for countries 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) have been 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, these values must 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.
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 by reporting 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 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 Debit Credit Tax Code
Tax Clearing Account EUR 1,000 2 - Domestic Purchase 20 %
Tax Clearing Account EUR 1,200
The line item in the journal entry is tax clearing account to foreign input tax EUR 200.
For more information, see the Quick Guide for VAT / Sales Tax Entries.

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 the Quick Guide for Tax Payments.
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).
7.1.4.5 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 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:
● 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 fine-tuning, 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.

7.1.4.6 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 customer’s 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 company’s 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.
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 fine-tuning, 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 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.
7.1.4.7 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 [page 38] and Cash
Discounts for Customer Invoices in Financials [page 66].
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.
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.
7.1.4.8 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 the 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 except tax line items Tax line items

Conversion The posting date is used as the conversion date for all sets of books The tax date of the business transaction
Date and companies by default. is used as the conversion date by
The conversion dates are defined in the activity Fine- default.
You cannot change the configuration
Tuning Currency Conversion Profiles .
options.
The assignment of a currency conversion profile to the set of books
and company is specified in the fine-tuning activity Integrate and
Extend Set of Books .
Conversion The conversion type Middle Exchange Rate is used for all sets of The conversion type Middle Exchange
Type books and companies. Rate is used for all tax countries.
(value for bid The conversion types are defined in the activity Fine- The conversion type is defined for each
rate, middle tax country and entered in the activity
Tuning Currency Conversion Profiles .
exchange Fine-Tuning Tax on Goods and
The assignment of a currency conversion profile to the set of books
rate, or ask
rate) and company is specified in the fine-tuning activity Integrate and Services Define Currency
Extend Set of Books . Conversions .
For almost all business transactions and postings, the tax date and posting date match. With the standard
settings above, no exchange rate differences appear in the journal entries. Therefore, it is advisable to leave
the standard settings unchanged to avoid unwanted exchange differences in the accounting documents.
Points to Note:
● 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 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.
● 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 a foreign currency that is referenced to a previous goods receipt.
Goods Receipt Date Invoice Date Posting Date Conversion Date for Conversion Date for
Gross and Net Amount Tax Items
01.06. 03.06. N/A 03.06. 01.06.

The system uses the invoice date, which corresponds to the posting date by default, as the conversion date for
posting the gross and net amounts. 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
shown in the accounting document for the supplier invoice.
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 user’s 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
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 [page 239].
● 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 [page 242].
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
recipient’s 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.
● 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 automatically displayed 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 a new regulation, particularly
for B2B commissions relating to the place in which services are performed.

Generally, the place in which services are provided serves as the 'service recipient’ address. If the country where the
'Ship-To' address is located differs from the address of the account, then the 'Ship-To' location is understood to be
the location where the service is performed. This directly influences how taxes are determined, in that the “Ship-To'
address is used to determine where the services will be taxed. For example, § 3a (2) UStG in Germany can be
consulted. If this is not correct for each and every case, then applicable tax data must be manually adapted, mainly
the tax country and the tax code.
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 include the VAT number when entering 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 [page 248].
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 [page 250].
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 Posting Date is used. But if you want, you can also enter a Tax
Due Date.
For more information on the tax due date, see Tax Due Date of Tax Items [page 214].
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.

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
● 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 [page 253] (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.
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. The Tax Exemption Certificates are taken into account in
sales transactions and are required to determine both the correct customer payment, and the proper payment to
the appropriate tax authority. If the tax exemption certificate is valid on the tax date, no tax is calculated. The
exemption certificate number is automatically entered in the payment document. You should enter a reason for the
tax exemption 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 taxes, 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 code. Enter your services in the
Services view of the Product and Service Portfolio work center under the Service Description tab, 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:

If a repair part is either implemented or installed, then the tax implication can either be a work delivery or work
performance. The system can't automatically determine these cases. In each individual instance, verify the
applicable tax code on the Taxes tab for the service and part item.
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 outside the borders where the head office is located. 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 located outside the borders where the
head office is located.
● 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 where the service is provided. The transaction is not taxable domestically if the location at
which the service is provided is abroad. If this indicator is selected, then the address of the service location
is used to determine where the services will be taxed. In such a case, the company providing 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. An example of this is work performed on movable tangible property for a private end consumer
abroad.
● To ensure that automatic tax determination works correctly, you must set the indicators and enter the tax
exemption reasons for all relevant countries. It is especially necessary to maintain the Taxable at Destination
indicator for both the issuing and receiving countries. In comparison, if goods or services are taxable at
destination, it is the seller's responsibility to calculate and pay the tax in the receiving country. Therefore, it
is not enough to maintain the tax details just for the issuing country; you also need to maintain them for the
receiving countries.
However, certain circumstances may lead to non-taxation or double taxation. Non-taxation occurs if a service
is indicated as Taxable at Destination in the issuing country but not in the receiving country. Double taxation
occurs if a service is indicated as Taxable at Destination in the receiving country but not in the issuing country.
These legislative inaccuracies also exist in reality. However, the system does not support double taxation. For
services that are not taxable in the issuing country (namely those indicated Taxable at Destination), the
settings for the receiving countries should be checked carefully to avoid accidentally leading to non-taxation.
The Taxable at Destination indicator is only utilized in CRM-related transactions, and not in SRM-related
transactions.
● 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
[page 248].
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 [page 251]. The
corresponding tax event and tax exemption reason code are already available in the system.
Specifics for the United States of America

● The service location is always used for tax determination for services in the USA. The Taxable at Destination
indicator is not relevant for the USA.
See Also
Tax on Goods and Services — Configuration Guide [page 251]
Tax Determination [page 234]
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 value-
added 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.
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
ship-to 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
○ 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 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, Büsingen 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
Tax Jurisdiction Code - Description Tax Jurisdiction Code Taxation in %
New York State NY 4%
Albany County NYAL0181 4%
Allegany County NYAL0221 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 [page 246].
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.
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.
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
○ 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 [page 234].
The system cannot process other reverse charge mechanism scenarios in the automatic tax determination, so these
must be checked manually.
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).
● 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

The following tax events are currently stored in the system and can be used to create tax codes for Germany:
● Purchase:
○ 50 – Reverse Charge Acquisition §13b II 1 Nr. 4, 6 – 9 UStG
○ 240 – Reverse Charge Acquisition §13b II 1 Nr.1 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 .
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
● 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 [page 234].
Master Data for Tax Determination

For more information, see Master Data for Tax Determination [page 239].
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.
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.
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.

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.
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.
This text is then included on the invoices where required.
Define Tax Codes

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) [page 258].
● 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.
● 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 [page 234].
7.1.5.2 Tax Determination for MOSS
Overview
On January 1, 2015, new EU VAT laws relating to ‘place of supply’ came into effect which stated that for the sale of
electronic services (e-services), telecommunications, and broadcasting services, the VAT for the sale must be
calculated in the destination country where the service is consumed, that is, where the customer is established or
has a permanent address, rather than in the country from where it is sold.
In conjunction with this change, the Mini One Stop Shop (MOSS) tax-filing scheme also became available from
January 1, 2015. MOSS enables companies that supply these types of services to private consumers in other EU
Member States to register in just one EU Member State (Member State of Identification, (MSI)) and then
electronically submit the VAT returns on these services using a web portal.

With MOSS, these returns, along with the VAT paid, are sent by the Member State of Identification (where the supplier
is established) to the corresponding Member States of Consumption (where the customer consumes the service)
and must be done so on a quarterly basis.
Therefore, even if you do not have an establishment in the particular Member State where the service you supplied
is being consumed, you can still calculate and submit the VAT returns due on those services and meet your legal
requirements. Using MOSS is optional, however, if you choose not to use it, you are required to register for VAT and
file returns in each Member State in which your customers consume the e-services, telecommunications, and
broadcasting services you have supplied.
The following table outlines the possibilities for using MOSS:
Company Details Consumer Tax Return Details

Location
EU-based company Private VAT is due in the EU country where the customer is based and MOSS can be
supplying e-services, consumer used.
telecommunications, and based in For example, a customer in Spain downloads an App provided by a French
broadcasting services another EU supplier on his mobile phone. The French company charges the customer the
country Spanish VAT.
Private EU VAT is not charged. MOSS is not available.

consumer For example, a customer in the US downloads an online program supplied by a
based outside French company. VAT is not charged, however, if the program is consumed in
of the EU another EU country, then VAT is charged and MOSS can be used.
Company based outside of Private VAT is due in the EU country where the customer is based and MOSS can be
the EU supplying e- consumer used.
services, based in an EU For example, a consumer based in Italy accesses telecommunication services
telecommunications, and country provided by an Australian company. The Australian company charges the
broadcasting services customer the Italian VAT.
For more information, see http://ec.europa.eu/taxation_customs/index_en.htm .
Prerequisites
To use MOSS, you must do the following:
● Register your business in one EU Member State. The state you chose will be known as the Member State of
Identification.
If choosing to use MOSS, you must do so for all Member States. It is not an optional scheme on an
individual Member State basis.
● Ensure that the tax event relevant to MOSS is created for each EU Member State where you plan to use MOSS
reporting.
Service Master
You can now indicate if the services are electronically sold to customers in the EU.
To do so, go to the Product and Service Portfolio work center, choose the Services view and click Edit . In the
Taxes tab, select the Electronically Sold checkbox.

Tax Returns
You can report the Mini One Stop Shop (MOSS) relevant taxes in a separate tax return. Under the scheme, a taxable
person who is registered for MOSS in a Member State (Member State of Identification) electronically submits
quarterly MOSS VAT returns detailing supplies of telecommunications, broadcasting, and electronically supplied
services to non-taxable persons in other Member States (Member State of Consumption), along with the VAT due.
You can access MOSS tax returns in the Tax Management work center under the VAT Returns and VAT Returns
Runs views.
To set up the return arrangement for MOSS returns, in the Tax Management work center, select the
Company Tax Arrangement and select 5 – MOSS Tax Return as the Tax Return Type.
● In order to file tax returns, find this scoping 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 Questions step, expand the Cash Flow Management scoping element and select Tax Management.
Select Tax Filing and answer the question related to the German or Austrian tax file for MOSS tax returns.
● For tax returns, this tax event is mapped to box number 45 for monthly tax returns and box number
205 for yearly tax returns.
● The Unique Reference Number provided by the government can be saved in the Unique Reference
Number field in MOSS returns and can also be entered in the Document Description field in the MOSS
returns payment.
Country-Specific MOSS Returns
Documentation is available on this topic that is specifically relevant for Austria and Germany. To ensure that
the relevant country-specific document version is displayed, select Personalize My Settings . Select
Onscreen Help and, under Country choose the relevant country. Save your settings.
7.1.5.3 Tax Determination for MOSS — Austria

7.1.6 Access to Tax Data by Tax Authorities (GDPdU)
Overview
This text describes how the solution enables tax authorities to access tax data as required by German law.
Prerequisites
Taxpayers 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
available 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 and evaluate tax-relevant data directly in the company's data
processing system. Tax auditors are authorized to access the stored data (including master data and links) in read-
only mode using the taxpayer'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 not allowed.
Read-only access includes reading, filtering, and sorting the data using the reports and evaluation tools available in
the data processing system. You use the Audit work center for this purpose.
Z2: Indirect Access

For the purpose of enabling read-only access by the tax auditor, the data is collected and electronically processed
by the taxpayer, or by a third party authorized by the taxpayer, following the tax auditor's instructions.
The tax auditor can only request electronic evaluation using the evaluation tools available in the taxpayer's data
processing system.
In the solution, 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 to Microsoft Excel®. To ensure that the data in the
Microsoft Excel file matches that in the solution, 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 taxpayer 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 the solution, you can implement Z3 access with an extraction run for financial data in the General Ledger work
center.
Z3: Data Carrier Release also enables electronic processing of 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 the Solution

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.
7.2 Views
7.2.1 Tax Authorities Quick Guide
This view enables you to maintain master data for domestic and foreign tax authorities, as well as financial data
relevant for VAT/sales tax or withholding tax. You can also maintain your company tax arrangements.
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, 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 with which your company
or subsidiary is registered.
To enable the system to trigger and post tax payments, you must enter the data for the payment transaction and
identify the relevant tax return type as relevant for payment on the Tax Return Arrangement tab.
For externally-initiated tax payments, that is tax payments entered in a work center other than the Tax
Management work center, the system can only use automatic payment allocation to identify a payment as a tax
payment if a tax authority is specified as payee/payer. Then the tax payment can be assigned correctly in the Tax
Management work center or posted as a tax prepayment.
Business Background
For information on tax reporting, see Tax Reporting [page 215].

Tasks
Enter Tax Authority Master Data

1. Choose Tax Authorities New Tax Authority . Enter the address and
communication data and save. The system assigns a unique number to the tax
authority.
2. Choose View All, go 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. Go to the Company Tax Arrangements tab and enter the standard settings of the tax
return types that are relevant for your company.
● If you are registered with a tax authority abroad, you also enter your foreign VAT
identification numbers on the Tax Numbers subtab.
If you trade with a third country or an 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 Intra-Community Movement [page 225]).
● Go to the Tax Return Arrangements subtab. For a payment-relevant tax return
type, enter the tolerance under Tolerance for Tax Payments (see also the Tax
Payments Quick Guide).
● The Carry Forward indicator is only relevant for certain countries, such as the US.
Set this indicator if a receivable from the tax authority needs to be cleared in the
subsequent period.
● The Tax Deferral subtab is only relevant for certain countries, such as Spain,
France, and Switzerland.
Documentation is available on this topic that is specifically relevant for

Spain. To ensure that the relevant country-specific document version is
displayed, select Personalize My Settings . Select Onscreen Help
and, under Country choose Spain. Save your settings.
5. Save your entries. The master data record for the tax authority is now active.
7.2.2 Sales and Use Tax Entries Quick Guide
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.
Each manual tax entry is entered automatically in the tax register as an open tax item, posted to the relevant tax
account, and included in the tax return run for the affected reporting period.
You may make manual sales and use tax entries in the following scenarios, for example:

● You have created an invoice without tax data. The tax item or items have not yet been reported to the tax
authority.
● You execute a tax correcting entry for a delivery or service granted free of charge.
● It is not advisable to make 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.
● 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.
Tasks
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 whether the entries are valid, choose Check .
4. If you do not want to make the entry right now, choose Save . The system
automatically assigns 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.
7.2.3 VAT Entries Quick Guide
In this view, you make VAT entries that the system does not include automatically with business transactions.
You can access the VAT Entries view from the Tax Management work center under Manual Tax Entries.
Each VAT entry is entered in the tax register as an open tax item, posted to the relevant VAT account, and included
in the VAT return run for the affected reporting period.
You may make manual VAT entries in the following scenarios, for example:
● You have created a business transaction and entered the incorrect tax rate or tax code by mistake. The tax
item or items have not yet been reported to the tax authority.
● Goods and services granted free of charge
● Intra-Community movement
● It is not advisable to 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.
● 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.

Tasks
Make a VAT 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, and also the credit or debit amount to enable the gross
amount balance to be cleared.
3. To test whether the entries are valid, choose Check .
4. If you do not want to make the entry right now, choose Save . The system
automatically assigns 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.
7.2.4 Withholding Tax Base Amount Entries Quick Guide
In this view, you enter amounts relevant for withholding tax resulting from transactions with your suppliers if the
amounts were not accounted for when the supplier invoices were entered. This is therefore only relevant for amounts
for which no withholding tax is retained.
You can access the Withholding Tax Base Amount Entries view from the Tax Management work center under Manual
Tax Entries.
Sales relevant for withholding tax (withholding tax base amounts) are entered automatically as tax items in the tax
register and taken into account for the relevant reporting period in the tax return run for withholding tax.
You may make manual corrections to sales relevant for withholding tax in the following scenarios, for example:
● You selected the incorrect withholding tax code when entering a supplier invoice without a purchase order
reference.
● At the time when a supplier invoice was posted, you had not classified the relevant supplier as being relevant
for withholding tax.
Tasks
Enter a Withholding Tax Base Amount
Before entering withholding tax base amounts manually, you must specify that the
supplier is subject to withholding tax. You do this in the supplier master data in the
Business Partners work center.
1. Click New then 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. Create a new line item in the lower area of the screen, select Withholding Tax Code , and
enter the transaction amount 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, click Release .
7.2.5 Sales and Use Tax Returns Quick Guide
You can access the Sales and Use Tax Returns view from the Tax Management work center under Tax Returns.
This view displays the returns created previously in the Sales and Use Tax Return Runs view. For more information
on this view, refer to the Sales and Use Tax Return Runs Quick Guide [page 271].
Posting of Sales and Use Tax Items
The system posts sales and use tax items in the following scenarios:
● You have entered a customer invoice for a customer located in your state (intra-state transaction). Your tax
return displays sales tax that you must 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). Your
company has a subsidiary (and therefore a nexus) in the state where the customer is located. Your tax return
displays sales tax that you must 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
(nexus) in your state. Your return displays the use tax that you must pay.
● You have made a manual entry with a tax code for sales and use tax using New Charge/Credit. The tax return
displays a manual payables/receivables entry. (Note that 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.
The system does not post sales or use tax items in the following scenarios:
● In the Supplier Invoicing work center, you have entered a new invoice without a 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.
● You have entered a purchase order or customer invoice for a product that is intended for resale or further
processing. In this case, your tax return displays 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 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
that you cannot release test returns. The tax items of these test returns are not posted.)
You create a tax return for reporting for the total reporting period in a sales and use tax return run. Here the system
determines the remaining tax payable.
To trigger tax payments, you have the following options:
● You trigger a tax prepayment without a rounding amount in the Tax Management work center under
Common Tasks New Tax Prepayment .
● You trigger a tax payment for a tax return without a rounding amount in the Tax Management work center
using the tax return.
● If rounded tax payments are required in a state, you trigger the payment in the Payment Management work
center (for example, with an outgoing check).
Errors in Tax Returns

If you discover 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.
● 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 in this run again.
● A sales and use tax return with the status Completed for which an externally-initiated tax payment has already
been 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 has already been completed cannot be
canceled.
Tasks
Check Tax Data

To display the open or reported sales tax items for a selected period and the source
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 , go to the Tax Return tab, and click Details in a field in the
tax form.
Release 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 assume 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

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.
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.
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

To trigger a tax payment for a reported tax return, proceed as follows:

1. Select a tax return with the status Reported 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.
work center under Payment Monitor . Once the payment is made, the tax return
assumes the status Completed.
Trigger Check Payment to Tax Authority

In some US states rounded tax payments are required. To trigger a check payment for this,
proceed as follows:
1. Go to the Payment Management work center and choose Common Tasks New
Outgoing Check .
2. Enter the payment data and bank data and your tax authority as payee. 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 has been issued, 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.
Once the tax payment is released, the status of the underlying tax return is
automatically changed from Released to Completed.
7.2.6 VAT Returns Quick Guide
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 created previously in the VAT Return Runs
view. For more information on this view, refer to the VAT Return Runs Quick Guide [page 273].
Tax returns created in the system include all tax items from VAT-related business transactions as well as manual
VAT entries that are to be reported for the reporting period. Once you have submitted the tax return data to your
tax authority and have changed the status of the return in the system to Reported, you can trigger a tax payment to
clear the tax payable calculated in this view.
● 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
in this run again.
● A VAT return with the status Completed for which an externally-initiated tax payment has already been
triggered can only be canceled if you have removed the payment allocation in the Payment Management work
center. A VAT return for which payment clearing has already been completed cannot be canceled.

Tasks
Check Tax Data

To display the open or reported VAT items for a selected period and the source 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:
2. Select the row of the VAT return. The system displays the tax information in the lower
screen area.
3. To display the form created in the system, click Preview .
tax events, choose View , go to the Tax Return tab, and click Details in a field in the
tax form.
Release 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 assume 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 Payment for a Tax Return

1. Select a VAT return with the status Reported 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.
work center under Payment Monitor . Once the payment is made, the tax return
assumes the status Completed.
7.2.7 EC Sales Lists Quick Guide
You can access the EC Sales Lists view from the Tax Management work center under Tax Returns.
This view displays the EC sales lists generated using the EC Sales List Runs view. For more information on this view,
refer to the EC Sales List Runs Quick Guide [page 274].
EC sales lists show, for the selected reporting period, all goods deliveries from the home country to the rest of the
community, other services, and deliveries for intra-community triangulations.

EC sales lists are used only for monitoring goods movements within the community 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 following transactions may be reflected in an EC sales list, for example:
● 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.
● In the Tax Management work center, you have entered a VAT entry manually for an intra-community goods
delivery or an intra-community triangulation.
● You have delivered goods to a branch office of yours in another EU country for your own, permanent use.
● You can delete an EC sales list with the status In Preparation at any time.
● 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
in this run again.
Tasks
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:
2. Select the row of 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 .
tax events, choose View , then go to the Tax Return tab and click Details .
7.2.8 Withholding Tax Returns Quick Guide — US
Documentation is available on this topic that is specifically relevant for the US. To ensure that the relevant
Help and, under Country choose US. Save your settings.

7.2.9 Tax Payments Quick Guide
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
or in the Payment Management and Liquidity Management work centers.
Tax Payment Types
The system makes the following distinctions with respect to tax payments:
● Tax payments that are triggered within the Tax Management work center (internally-initiated tax payments)
or tax payments that are triggered outside the Tax Management work center (externally-initiated tax
payments).
● Tax payments that are triggered as manual, flat-rate payments (for example, VAT prepayments) or tax
payments that are based on tax returns.
● Tax payments that match the determined tax amounts of tax return(s) or tax payments that differ from them
(tax payment difference).
The distinction between internally-initiated and externally-initiated determines the release and approval process
and business task management for the tax payments, the status assignment of tax payments and tax returns, and
the process for entering and canceling tax payments.
Internally-Initiated Tax Payments
For internally-initiated tax payments, the bank account to be used is determined automatically by the system
according to your configuration, and cannot be entered manually. If you want to enter a specific bank account
manually, you should create an externally-initiated payment in the Payment Management work center. 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 must 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 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 must be done manually if there is information
missing or the data is inconsistent. For some payments that are initiated in the Payment Management work center,
for example bank transfers or outgoing checks, the system tries to find a suitable payment order and to assign the
original payment (source document). Once the payment allocation is released, the status of the payment order is
set to Confirmed.
When 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 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 in the Tax Management work center with the status In
Preparation. If the bank statement is released and the system can assign a tax return to the tax payment, the tax
payment is assigned the status Released immediately.
Tax Payment Differences
For externally-initiated tax payments, the system automatically determines suitable, reported tax returns. If the
system determines no tax returns or multiple tax returns, or the tax payable according to the tax return differs from
the tax payment, a task Review and Release Tax Payment is created.

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. To enable 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 tax payment difference is below this value, the tax payment difference is immediately released with the
approval and entered automatically as an expense.
Tax payment differences may occur, for example, for the following reasons:
● The system has assigned a tax return to an externally-initiated tax payment and the tax amount in the tax
return differs from the tax payment.
● The system has assigned more than one tax return to an externally-initiated tax payment.
Useful Tax Reports

Before you trigger a tax payment to your tax authority, check in the Open VAT / Sales Tax Items report whether there
are tax items that still need 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 using the Release function, it
is displayed in the Reported VAT / Sales Tax Items report.
It is advisable to 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 as to how a tax payment is canceled and whether, before this happens, a payment allocation is
reversed, depends on the status and the origin (externally/internally-initiated) of the payment, and whether the tax
payment was triggered based on a tax return. You need to reverse or cancel payment allocations or tax payments
in the following scenarios:
● An incorrect amount has been entered for the tax payment.
● A tax payment has been mistakenly triggered as a tax prepayment and not based on a monthly tax return (or
the other way round).
● The incorrect tax return has been assigned to a tax payment.
● A payment has been 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. The relevant payment then
also assumes the status Canceled in the Tax Management work center.
You cancel internally-initiated tax payments in the Tax Management work center. The referenced payment in
Payment Management work center is then assigned the status Canceled. Only tax payments with the status
Released can be canceled. Tax payments with the status In Preparation must be reversed.
If you want to cancel or reverse a tax payment initiated based on 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.
Tasks
Check Predefined Settings

To enable tax payments to be determined, triggered, and entered in the system, you need to
have defined the following settings and master data:
● 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
● 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 Tax Authorities Quick Guide [page 258].
● You have set the indicator for a tax return type that is relevant for tax payments. To do
this, go to the Tax Authorities view under Company Tax Arrangement Tax Return
Arrangement and set the Payment Required indicator for a tax return type relevant
for payment.
Enter a Tax Prepayment

1. Under Common Tasks, choose New Tax Payment. (Alternatively, under Tax
Payments, select New then Tax Prepayment.)
2. Enter the Tax Return Arrangement and the required data on the Prepayments tab.
3. Choose Release. The system generates an internal payment ID and posts the payment.
The journal entry ID of the journal entry created is displayed.
4. You now find the payment with the status Ready for Transfer in the Payment
As long as your tax prepayment has not yet been released, you can continue to assign tax
returns to this payment on the Tax Payments tab.
Enter a Tax Payment to Clear a Tax Return Directly

1. Select a tax return with the status Reported to which no tax payment ID has been
assigned. Choose Pay .
2. If necessary, change the payment date and posting date proposed by the system and
choose OK . An internal number and the status In Preparation are assigned to the
payment.
3. Once the payment is approved, it assumes 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

1. Go to the Payment Management work center and choose Common Tasks New
Outgoing Bank Transfer .
2. Enter the payment and bank data and the payee of your tax authority. Choose
Release .
3. An internal number is assigned to the payment. 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. The
payment is automatically assigned to the Tax Management work center using the tax
authority specified.

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 correcting entry in the Tax Management work center under Manual Tax Entries
Enter a Tax Payment with a Manually-Created Bank Statement

1. Go to the Liquidity Management work center and choose Common Tasks New 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 .
5. You can now find the payment in the Payment Management work center under Payment
Monitor with the status Confirmed. (Note that payments that were entered with a bank
statement and where the data is consistent immediately get the status Confirmed upon
release.)
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.
6. Review and release the tax payment.
Enter a Tax Payment with Bank Statement Upload

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 File Management Inbound Files New
Inbound File .
2. Under File Type, select Bank 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 with the status In
Preparation.
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 with the
status Confirmed.
6. Review and release the tax payment.
Process a Direct Debit for Multiple Tax Payments

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 Common
Tasks New Outgoing Bank Transfer .
2. After approval, you find the payments in the payment monitor with the status Ready
for Transfer.
3. For each bank transfer, click Actions for Bank Transactions and choose Set to In
Transfer.
4. Under Payment Allocations, select the appropriate payment allocation for editing. Set
the filter Bank Transfers, copy the bank transfers entered previously, save your entries,
and release the payment allocation. The payments assume the status Confirmed.
5. The payment allocation identifies both bank transfers as tax payments.
7.2.10 Sales and Use Tax Return Runs Quick Guide
You can access the Sales and Use Tax Return Runs view from the Tax Management work center under Periodic
Tasks.
In this view, you execute runs to create your sales and use tax returns automatically. The open tax items from the
selected reporting period are derived automatically from the tax register, then summarized and assigned with the
tax events to the relevant fields in the tax return. For more information, see Sales and Use Tax Returns Quick Guide
[page 262].
Tasks
Check Predefined Settings and Tax Data

● Check the fine-tuning settings in Business Configuration under Tax Returns for Goods
and Services and Tax on Goods and Services.
● Ensure that the master data is defined for the tax authorities (see also Tax Authorities
Quick Guide [page 258]). You need to have entered your tax information for sales and
use tax under Company Tax Arrangement Tax Numbers , and also under Tax
Return Arrangement.
● Ensure that you have entered the tax jurisdictions and tax exemption reasons for sales
and use tax for the relevant products in the Products work center.
● Ensure that you have entered a valid tax exemption for a product and the relevant seller.
To do this, choose the item you want to edit in the Products work center, click
View All and choose Sales. Select the row of the seller, switch to the Tax tab, and
enter the tax data.
● In the Business Partners work center, ensure that you have entered the tax-relevant
data for a supplier. To do this, select a supplier 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.
● In the Business Partners work center, ensure that you have entered the tax information
for use tax applicable to a customer. To do this, select a customer and choose Financial

Data. Switch to the Tax Data and Tax Exemption Certificate tabs and enter the tax data
and tax exemption reason.
Prepare a Tax Return Run
It is advisable to 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 differences have arisen for technical reasons.
2. Check whether any open tax items exist with a posting date after the reporting period.
This check eliminates any balance differences in the tax accounts. To do this, choose
the Open VAT / Sales Tax Items report.
3. Check whether any open tax items exist with a tax due date after the reporting period.
This check eliminates any balance amounts in the tax accounts. To do this, also choose
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 further to the
source document.
For more information, see the Example Scenario for Tax Returns.
Create and Execute a Tax Return Run

1. Choose Common Tasks New Tax Return Run .
You can also reuse the data of an existing run. To do this, in the Sales and Use Tax Return
Runs view, select a run then choose Copy . The data is copied 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.
It is advisable to choose a period from January 1 to the end of the current reporting
period to ensure that all open tax items are taken into account.
To create an amended tax return for a tax return previously submitted to the tax
authority, set the Correction Run indicator.
3. Click Save . The system automatically assigns a number and the status In
Preparation to the run.
4. To execute the run immediately or schedule it for a later date, it must have the status
Active. To achieve 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 execute the run at a later date (to spread the system load, for example), set the
Single Run indicator, enter the time, and choose Save and Close .
5. Under Tax Returns Sales and Use Tax Returns , you find a new tax return with the
status In Preparation. For more information, see Sales and Use Tax Returns Quick Guide
[page 262].
If no open tax items are found in the selected period, no tax return is created.
7.2.11 VAT Return Runs Quick Guide
You can access the VAT Return Runs view from the Tax Management work center under Periodic Tasks.
In this view, you execute tax return runs or correction runs to create your advance returns and annual returns
automatically.
The system determines the tax items relevant for the selected reporting period based on business transactions and
manual tax entries.
During the tax return run, the open tax items from the selected reporting period are derived automatically from the
tax register, then summarized and assigned with the tax events to the relevant fields in the tax return. For more
information, see VAT Returns Quick Guide [page 264].
Tasks

● Ensure that the master data is defined for your tax authority (see also Tax Authorities
Quick Guide [page 258]).
Prepare a Tax Return Run
It is advisable to 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 differences have arisen for technical reasons.
2. Check whether any open tax items exist with a posting date after the reporting period.
This check eliminates any balance differences in the tax accounts. To do this, choose
3. Check whether any open tax items exist with a tax due date after the reporting period.
This check eliminates any balance amounts in the tax accounts. To do this, also choose

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 further to the
source document.
For more information, see the Example Scenario for Tax Returns.

You can also reuse the data of an existing VAT return run. To do this, under Periodic
Tasks VAT Return Runs , select a run 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 VAT Returns , select a tax return and choose Actions and
Schedule Tax Return Run for Next Period .
run.
To create an amended tax return for a tax return previously submitted to the tax
authority, set the Correction Run indicator.
Save and Close .
5. Under Tax Returns VAT Returns , you find the VAT return with the status In
Preparation. For more information, see VAT Returns Quick Guide [page 264].
7.2.12 EC Sales List Runs Quick Guide
You can access the EC Sales List Runs view from the Tax Management work center under Periodic Tasks.
In this view, you execute runs to create your EC sales lists automatically. The open tax items from the selected
reporting period are derived automatically from the tax register, then summarized and assigned with the tax events
to the relevant fields in the EC sales list. For more information, see EC Sales Lists Quick Guide [page 265].

Tasks

● Ensure that the master data is defined for your tax authority (see also Tax Authorities
Quick Guide [page 258]). You need to have entered your tax information and the VAT
registration number of the target EU states under Company Tax Arrangement Tax
Numbers , and also under Tax Return Arrangement.
● Ensure that you have entered a valid tax exemption for a product or service. To do this,
choose the item in the Products work center, click View All then choose Sales. Select
the row of the distribution chain, go to the Tax tab, and enter the tax data and tax
exemption reason.
● In the Business Partners work center, ensure that you have entered the VAT / sales tax
information for a customer. To do this, select a customer and choose Financial Data.
Enter the tax information under Tax Data.

You can also reuse the data of an existing run. To do this, under Periodic Tasks EC
Sales List Runs , select a run 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 Tax Returns EC Sales Lists , select a return and choose
Actions and Schedule Run for Next Period .
run.
● To start the run immediately (with status Active) and create an EC sales list return,
click Save and Close .
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 the EC Sales Lists Quick Guide
[page 265].

7.2.13 Withholding Tax Return Runs Quick Guide
You can access the Withholding Tax Return Runs view from the Tax Management work center under Periodic
Tasks.
In this view, you execute withholding tax return runs to create your withholding tax returns automatically.
The unreported sales relevant for withholding tax from the selected reporting period are selected automatically from
the tax register, then summarized and assigned with the tax events to the relevant fields in the tax return. For more
information, see Withholding Tax Returns Quick Guide [page 266].
Tasks

● Check the fine-tuning settings for withholding tax and withholding tax returns in
Business Configuration.
● Ensure that you have set the Withholding Tax indicator and entered the tax data under
Tax Authorities Company Tax Arrangement .
● In the Business Partners work center, ensure that you have entered suppliers with
withholding tax information. To do this, selecting 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 with 1099-
MISC, select No backup withholding. If you have to withhold a certain percentage, select
Liable to withholding.
● Ensure that you have defined an income type for withholding tax in the Products work
center. To do this, select the relevant item under Materials or Services, choose View
All, then go 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.

You can also reuse the data of an existing run. To do this, under Periodic Tasks
Withholding Tax Return Runs , select a run then choose Copy . The data is copied
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 do this, under Tax Returns Withholding Tax Returns , select a tax return and
choose Actions and Schedule Tax Return Run for Next Period .
run.
To create an amended tax return for a withholding tax return previously submitted to
the tax authority, set the Correction Run indicator.

3. Click Save . The system assigns a number and the status In Preparation to the run.
Save and Close .
5. Under Tax Returns Withholding Tax Returns , you find a withholding tax return
with the status In Preparation. For more information, see Withholding Tax Returns
Quick Guide [page 266].
7.2.14
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7.2.15 Quick Guide for Service/Excise Tax Returns - India
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7.2.16 Tax Adjustments Quick Guide – India

7.2.17 Quick Guide for Other Tax Returns – India
7.2.18 Quick Guide for Other Tax Return Runs – India
7.2.19 Quick Guide for A-29 Reports – Mexico
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7.2.21 Quick Guide for Service/Excise Tax Return Runs – India
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7.3 Reports
7.3.1 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 [page 211]. The amounts are shown in tax
return currency and thus can deviate from the transaction currency:
● 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
● Reports View
7.3.2 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.

See Also
● Reports View
7.3.3 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.

See Also
● Reports View
7.3.4 All VAT / Sales Tax Items with Journal Entry Details
You can use this report to display VAT / sales tax items (that is, all reported and open tax receivables and tax payables,
their tax base amount and the underlying source documents) and their respective journal entry details for a selected
reporting period.
The source for all amounts, except for the net amount, displayed in the report is the Tax Register. The amounts are
shown in tax return currency and transaction currency. The net amount is shown in company currency and
transaction currency.
The tax countries Canada, India, and Mexico are not supported. Items for these countries will not be displayed
by this report.
● Per default the report shows tax base amounts, tax amount, and net amounts.
○ Tax Base Amount: The base amount used for tax calculation.
○ Tax Amount: The calculated or entered tax amount in a document without deductibility taken into
account.
○ Net Amount:The posted net amount of an item of a document.
● As key figures the amounts are shown in tax return currency and in transaction currency except for the net
amount which is shown in company currency and transaction currency. You can display the following
amounts:
○ Applicable Tax Amount: Posted tax amount with deductibility taken into account.
○ Deductible Tax Amount: Part of the tax amount that is deductible.
○ Non Deductible Tax Amount: Part of the tax amount that is not deductible.
○ Internal Tax Amount: The internal tax amount is automatically calculated when entering a business
transaction or source document..
● In addition, you can display the following characteristics:
○ Tax Attributes: tax code, tax rate, non deductible tax rate, tax date
○ G/L Account (Net): Shows the general ledger account on which the net amount was posted.
○ G/L Account (Tax): Shows the general ledger account on which the tax amount was posted.
○ G/L Account (Non Deductible Tax): Shows the general ledger account on which the non deductible tax
has been posted if this account deviates from the account the net amount was posted to.
See Also
Reports View

7.3.5 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 [page 211].
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:
Work Center Transaction or Journal Entry Voucher
Payables, Receivables Invoice/credit memo

Manual entry of a receivable/payable
Supplier Invoice Supplier Invoice
Payment Management Payment allocation

Incoming cash payment/outgoing cash payment
Incoming check/outgoing check
Outgoing bank transfer
Outgoing wire transfer

Travel and Expenses, Costs and Revenues Expense report
Tax Management Manual tax entry
See Also
● Reports View
7.3.6 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

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 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 balance sheet account for advances with open item management and G/L account type
OASSET- Other assets 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 structures.
4. Choose Maintain Account Determination Group. Go to General Ledger > Groups for Other Current Assets.
Create an account determination group for travel advance and set the indicator for use in the expense report.
5. Select the account determination profile. In the detail screen for general ledger, go to the Others tab in the
Other Current Assets section.
Add the newly created Account Determination Group 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.

Travel and Expenses P U B L I C • © 2016 SAP SE or an SAP affiliate company. All rights reserved. 285
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.
Check the expense arrangement

To make sure an employee can use the new expense type, check the employee’s 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 auditor on the employee's behalf:
1. If you are the auditor, 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 employee’s 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 auditor has checked the expense report, the employee’s manager performs the following steps to
approve the reimbursement. The auditor 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.

286 © 2016 SAP SE or an SAP affiliate company. All rights reserved. • P U B L I C Travel and Expenses
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 employee’s 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 auditor 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 Scenario Every employee in Auditor in the Manager, cost Payables

Configuration the Home work Travel and center manager or accountant in the
center > Employee Expenses work project Payables work
Self-Services center responsible in the center
(ESS) Managing my Area
work center

With approval Employee reports his Creates and saves Reviews Approves Pays
own travel expenses in
Home work center with
ESS
With approval Auditor reports Creates, saves, Approves Pays

expenses on behalf of a reviews
colleague in Travel and
Expenses work center
With approval Auditor reports own Creates, saves, Approves Pays

expenses in Home work and reviews
center with ESS
With approval Manager reports Reviews and Creates and Pays

expenses for an revises, if approves
employee in the necessary
Managing my Area
work center
With approval Manager reports own Reviews and Approves Pays

expenses with ESS revises, if
necessary
Without manager Employee reports own Creates and saves Reviews Pays
approval expenses in Home work
center with ESS
Dual control Auditor reports own Creates and saves Approves Pays
expenses in Home work
center with ESS
Approval Employee reports own Creates and saves Reviews Approves, if Pays
depending on expenses in Home work expense report
threshold amount center with ESS amount exceeds
for expense report threshold
Review depending Employee reports own Creates and saves Reviews, if Pays
on threshold expenses in Home work expense report
amount for center with ESS amount exceeds
expense report threshold
No review, no Employee reports own Creates and saves Pays

approval expenses in Home work
center with ESS
8.1.3 Rule of 183 - 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
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 Views
8.2.1 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.
Tasks
Create New Expense Arrangement

1. In the Expense Arrangement view you click New and then Expense Arrangement. The
expense arrangement screen opens.
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.

8.2.2 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.
The expense reports are listed by status. You can also group them by employee or approver. An Expense and
Reimbursement Summary allows you to check whether the expense reimbursement has already been paid out to
the employee.
You can then submit expense reports for management approval and subsequent reimbursement. In addition to
creating your own travel or other expense reports, you can create these reports on behalf of other employees.
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 [page 287].
Expense and reimbursement also allows to pay out travel advances for upcoming business trips. For more
information, see
Travel Advances [page 285].
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
[page 289].
Tasks
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.
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
[page 285].

1. Go to the Expense Reports view and click New .
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.
8.2.3 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. You might have to
recalculate the settlement of an expense report that has already been submitted and approved. For example, if the
system administrator updates per diem rates and applies the change retroactively, then the reimbursement
employees were entitled to changes and you'll have to recalculate their expense reports accordingly. You can
recalculate expense reports manually, or set up an expense settlement recalculation run to recalculate the affected
expense reports after the retroactive changes have been implemented.
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 if the status of the expense report is Released
for Reimbursement.
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).
Tasks
Create a new expense settlement recalculation run

1. Go to Travel and Expenses work center, Exception Handling view, Expense Settlement Recalculation Runs sub-
view, and click New .
2. Give your new recalculation run a name, and specify all the details, such as whether you would like it to
recalculate all expense reports from a particular period, or just a specific expense report from a specific
employee.
3. Choose Set to Active and then Save and Close.
Edit an expense settlement recalculation run

view, and click Edit .

2. Edit the details as per your requirement.
3. Save the selections, and close the screen.
Export the results of a run to Microsoft Excel

view.
2. Click Export , and the To Microsoft Excel®.
Execute the Run

view,
2. Select the row for your new run and choose Schedule . You can choose to start the run immediately or
schedule it after another scheduled job. You can also decide if you want the run to recur after a defined time
frame
3. Save your settings and close the screen
4. To view the results of your recalculation run, select the row and then click the Application Log ID number.
View Job Monitor

Go to Travel and Expenses work center, Exception Handling view, Expense Settlement Recalculation Runs sub-view,
and click View Job .
The job monitor shows the scheduled jobs for the selected run.
Set Status of the runs

view, and click Actions .
2. You can set the status of a run to active or obsolete.
8.2.4 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.
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.
8.2.5 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.
Business Background
● Rule of 5/5/15 - Austria [page 289]
● Rule of 183 - Austria [page 288]
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.
8.3 Reports
8.3.1 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
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.
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 (*).
● 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.
● Expense Report Start Date
The date on which the business trip began. This variable is only relevant if you have selected Trip-Based or
Period-Based 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 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
● Reports View

8.3.2 Expense Reports – Overview
Overview
This report provides an overview of the expense reports created by your employees or expense clerks in a selected
period.
Features
Running the Report

● Created On
The date on which the expense reports were created.
○ 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,
The date on which the business trip began. This variable is only applicable if you selected Trip-Based or Period-
Based as the Expense Report Category.
If you want to restrict the displayed data to particular expense reports, enter their IDs here.
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 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.
See Also
● Reports View
8.3.3 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.
Features
Running the Report

asterisk (*).
● Created On
The date range in which the expense reports were created.
The date on which the business trip began. This variable is only relevant if you have selected Trip-Based or
Period-Based as the Expense Report Category. Receipt-based expense reports do not have an expense start
date.
○ 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,
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.

● Use the filters to manipulate how the data is displayed in the content pane.
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.
See Also
● Reports View
8.3.4 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.
Features
Running the Report

asterisk (*).

● 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.
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
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
● Reports View

8.3.5 Expense Reports – Input VAT Refund
Overview
This report provides an overview of expenses by country that include tax, such as VAT, that are incurred by your
employees during a business trip abroad.
Your company can request reimbursement of these taxes from the foreign tax authority.
Features
Running the Report

● Country
The country in which the expenses were incurred. To select all abroad countries, for example, exclude the
● 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 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.
Manual Posting of Input VAT Refund for Expenses Abroad

Depending on your Country's tax laws, companies can claim refunds for value-added tax (input tax) for expenses
abroad.

Before proceeding with the manual tax entry to claim input taxes, there should be a Company Tax
Arrangement (CTA) set up in the country where you will claim the input tax refund. For more information, see
the section Enter Tax Authority Master Data in the Quick Guide for Tax Authorities (Tax Management)
[page 258]
Tax values are not automatically calculated in the system.

Expense Reports abroad are always treated as zero percent tax with the default tax code Import (Supplier Invoice)
and hence no taxes are calculated when Expense Reports are posted.
You are required to submit a physical copy of the receipts to the representative in your organization who will in turn,
apply for the tax reimbursement from the relevant foreign tax authorities.
As an accountant, choose Manual Tax Entries in the Tax Management work center and manually post the VAT entries.
For more information, see Manual Entry of Journal Entry Vouchers.
See Also
● Reports View
8.3.6 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.
Features
Running the Report

● Country
The country that was the destination of the trip.
● City
The city that was the destination of the trip.
● Created On
● Arrival Date
The date of arrival at the destination city.

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.

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
● Reports View
8.3.7 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
The most important variables are explained below:
● Municipality ID
A number sequence for the identification of politically independent municipalities or communities in Austria.
The unique identifier for an expense report.
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 .

● 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
Reports View
8.3.8 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
The unique identifier for an expense report.
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.
● Created On
● Trip Type
The type of trip depending on the distance traveled by the employee. For example: Short business trip, long
distance business trip.

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
Reports View

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SAP Business ByDesign February 2016