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Tuesday, January 26, 2010

Procure to Pay Business Process Steps

A. Procure to Pay Business Process Steps
1. Create Purchase Requisition - ME51 (Fields: Material/Plant/Quantity/Storage Location)
2. Create Purchase Order - ME21N. (Purchasing org/ Purchasing group/ Company Code/ Payment Terms/ Vendor/ Currency /Material/ Quantity/ Plant/ Inco terms/ Net Price/ Tax code/ Storage Location)
3. Goods receipt Purchase order – MIGO (Enter PO No:/ Goods receipt Purchase order - screen will display/save/ Material document posted will display)
4. Enter Invoice – MIRO (Company Code/ Invoice date/ Reference-PO/ Amount/ Baseline Dt.)
5. Evaluated Receipt Settlement (ERS) with Logistics Invoice Verification – MRRL (Company code/ Plant/ Goods receipt document/ Fiscal year, goods receipt/Vendor/ Purchasing Document)
6. Automatic Clearing without Definition of Clearing Currency – F.13 (Company code/ Fiscal year/ Document number/ Posting date/ Check Select vendors)
7. Automatic Clearing with Definition of Clearing Currency - F13E (same as above)
8. Clear G/L Account – F-03 (Account/ Company code/ Currency/ Select the required document- enter Pstky, Account, Amount, Profit center)
9. Automatic Payment - F110 (parameter tab - Posting date/ Document date/ Company code/ Payment method/ next payment date/ Vendor)

B. Payment Program – FBZP
1. Set up all Company Codes for payment transaction- OBVU
(Specify paying CC, Cash discount and tolerance, Special G/L transactions to be settled)
2. Setup Paying Company Code for payment transaction – OBVU
(Min/Max amt. for out/in payments, Forms advice notes and EDI,)
3. Setup payment method per country for payment transaction - OBVCU
(For each country –Check/Bank transfer/ACH/, master record –Bank/collection auth., posting specifications-Doc. Type, Procedure for print form, allowed Currencies)
4. Set up Payment Methods per Company Code for Payment Transactions – OBVU
(Method ©,Min/Max amount limits, Grouping (single payment for marked items),Foreign payment/currency/customer allowed, Bank selection (optimization of payment, specification for Payment Advice)
5. Set Up Bank Determination for Payment Transactions – OBVCU
Select the Paying CC and specify the following
(Bank selection – Ranking order (Payment Method& House Bank), Bank Accounts (HB/Method/Bank ID/Bank GL a/c/ Bank clearing GL a/c), Available amounts (HB/Bank ID/days/Currency/ Available out/In coming amounts), Value Date (Per each Method select (HB/Bank ID/amount limit/Currency/days to value date) - Value date is the date on which Bank carry out debit or credit to the account.

C. Running Payment Program- F110
a. Enter parameters (Posting date, Company code, Pmt Method, Next p/date, Vendor (Vendor open items)
b. In Additional log tab (Select Due date check, select Payment method selection in all cases, select Line items of the payment documents, and Vendors)
c. Free Selection tab of the payment parameters screen: allow you to enter a field name and value and to use this field as included or excluded selection criteria.- Unneeded vendor open items are blocked)
- Schedule/Start payment proposal,
- Run the Proposal (Select Start immediately and Create payment medium)
- Checks are printed, and FI payment clearing document created.(Dr-Vendor/Vendor down payment, Cr-Bank/Cash Discount)
- To view a report (FCHN- to display a check register, SP01- to display spool requests)
- Check: Payment proposal log, Proposal list,
Exception list (Exception list contains those invoices which are due for payment but are stuck in the system due to some issues). The reason for the exception is represented by an error number.
Blocked items/Special G/L transactions /Items that could not be settled despite being due.

D. EDI Settings for Payment program (For outbound IDOC trigger)
Payment program (F110) generates IDOCs. This is the case usually when the customer must send their payment files to one of their banks via an EDI link - steps to set EDI setting.
1. FBZP – A. define a Payment Method that allows EDI (table T042Z). This payment
Method must be using program RFFOEDI1.
B. Define the customer’s House Bank that will be used for the payments and assign an EDI
Partner number to it.
2. FI12 - look under EDI Partner Profiles
A. Create a Partner Profile of Partner Type "B" (Bank)
(Note: some banks require a specific name or number for the EDI Partner nr. If that is the case, the Bank should let you know and you will need to update the Partner Nr. accordingly).
3. WE20 – A. assign the following Message Types (or only those that you need) to the Partner Profile.
B. Check the Receiver Port if necessary. A Basis consultant should help you in this step.
C. Check that the EDI Payment Method you defined is assigned to the relevant House Bank.
4. SA38 - define a Variant for the IDOC generation program RFFOEDI1
- Select: Paying/Sending Company Codes
- EDI-relevant payment method(s)
- House bank(s)
- In the “Print Control”, select "Generate SAP IDOC"
5. FI02- Check that the Bank Nr. and the SWIFT Code is maintained for the relevant House Bank.
6. On your Vendor master data, check the EDI-relevant payment method and the bank Data are maintained.
7. You are now ready for testing: Run the Payment program (F110), once the payments are posted correctly, click on the "Printout/Data Medium" tab to execute the program RFFOEDI1 and generate the payment IDOCs. View the IDOC numbers by clicking on Additional Log.
You can also use T Code WE02 to display the IDOCs.

E. Scenarios - Payment Program: (Which we can refer in the Interview)

1. We are facing a problem in running a automatic payment program. Suppose I have a balance of Rs 100000 in my bank account and today I am running an Automatic payment run. Total payment of the run is Rs 150000. So when I run Automatic payment run it is not giving any error message. What to do with this problem.
Ans. The Automatic Payment Program does not check the Balance of your Bank Account. (GL A/c. Balance.) What it does check is the min & max amounts that you have maintained in your customization. In Bank determination (FBZP), you have to fill in the available amounts for each Bank. This is the maximum amount up to which payments will be generated by the Auto. Pay. Run.
So if you want to ensure that on any single day the payment run does not pay more than bank balance, you have to update on a daily basis available balance to match with your bank balance.

2. I am creating a new company code 'A', in which the paying company code will be 'B' and the sending company code will be 'A'. Now I have to configure for both manual and automated payments. For cross-company payments what do I have to do different in the configuration settings?

Ans: In Customizing Maintain Payment Program : Transaction code FBZP
a) define your company code' A" & "B" both in section tab (All Company code)
b) Define Paying company Code for example "A" paying company
c) Payment Method in country in tab: Country IN (India) - Name of Country - Payment Method "C" is for Check "D" for Demand Draft etc
d) Payment Method in Company code - for example "A" is paying company define payment method in same section
e) In Bank Determination Section - define Ranking Order, Bank Accounts, Available Amount, Value Date, Expenses/ Charges .

3. We have a vendor with payment terms 50% advance and 50% on delivery. Let’s say we made a contract for 100,000 USD. Now as per the terms, we paid him 50,000 USD advance. Now after some time, he provides services for 20,000 USD and raises the invoice for the same. Now as per the terms we have to pay him 50% of 20000 since 50% is already paid in advance. Now when i do the GRN and ERS/MIRO and run the auto payment program, the system proposes entire amount of 20,000 as due for payment. Is there any way where we can configure the system in such a way that it should propose only 10,000 as due for payment. I can do the manual adjustment before doing F110 but just want to know if there is any other way out without the manual interference.

Ans: Attach the payment terms to the vendor which is created under hold and retain option. This will create multiple lines as per payment terms and will pick up only the line item which is due for payment.

4. How to make the Down payment through automatic payment program, through F-110. what are the prerequisites?
Ans. For Down payments to be paid using APP. we have to create a Down Payment request F-47.


Gravity Gardener said...

These are not complex tools to deploy, but they are, nonetheless applications that require some organizational change management to take place. In most cases, this involves re-evaluating current business processes, practices and policies that may have been developed years earlier and determine if they are still viable in today’s climate.


Venu Kumar said...

Hello Murthy

I have just seen ur blog. It is really helpfull. Currently I was looking for job in SAP FICO.I need your guidance from you. Can you please reply me.

Sravanthi said...

HI Murthy garu , I did send you one email of my issue , to your hotmail email id , could you please address the same by taking your precious time ...

I repeat it her eonce again.
Now, I claimed my recent experience in professionalservices company . I can say all the generl thinfs about how to configure ,but thats not the case in practical .
So, could you please send me some information, where I can explain theinterviewers abou my experience and expertise in that project .

This is th eonly thing taking me back in the interviews, I am unable to explain them at the expected level of practicality .

Also, I would like to know if you have any recruiters for SAP FICO to get the projects to work on corp to corp basis , as I got my H-1B recently .

Thanks a lot for this blog and extended support from you .

I have attached my resume for your reference on what I mentioned for professional services company.

Please do the needful , as after a long long search , I found your blog to get the right information

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arry said...

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