Skip to Content
Author's profile photo Vinod Vemuru

Value date calculation logic during automatic payment process (APP)

Assumption: Reader is aware of basic “Automatic Payment Process” concepts.

Most of us are familiar with online banking transactions. There would be thousands of bank transactions happening 24/7. Did you ever think, how does payment reaches a bank/payee, if it is done on a bank holiday or on a Sunday (Global holiday in most of the countries)? Usually banks refer to value date while making  a payment to payee instead of transaction date. In case of real time transfers, value date and transaction date are same. In case of payments with say check, value date may be in future as well. Aligning this kind of requirement to SAP, usually payments are handled in SAP through automatic payment program (F110) or manual payments (F111). To understand the complete process in a better manner, first we need to understand few terminology used in payment process.

Payment media: This is the means of communicating the payment related information to bank. This would have information like payee details, bank account, amount to be paid etc.

E.g.: Payment media can be sent to bank through payment IDOC, flat file, XML file etc.

Value date: This is the date on which bank has to dispatch the money to payee account. Please note that payment media is sent in advance to the date on which payment is to be made to payee. How many days before a payment media should be sent to bank is controlled through configuration.

Payment advice: This is the communication sent to payee/accounting clerk (In some cases where vendor doesn’t have e-mail address) stating with the details of the payments done (List of paid invoices, amount, payment currency etc.) and to which bank account payment is made. This helps the payee to stay updated about the payment progress.

Usually, F110/F111 is run on a weekday and payment media is generated immediately and sent to bank. But, bank will start the payment process on the value date mentioned in the payment media.

Value date configuration and calculation logic:

Value date can be calculated in two different ways.

  1. Without bank calendar
  2. With bank calendar

Value date calculation without bank calendar:

Go to below path in FBZP.

Untitled.png

Enter required company code and proceed. In the next screen, you can assign the number of days to be added to value date.

By default, value date is same as posting date entered in the payment run. Number of days can be assigned at payment method, House bank, account ID, Amount and currency level.

We can assign different number of days for different amount limit for the same account , currency and payment method

E.G: All checks (Check payment method) up to 100000 USD should be paid on 1 day after the payment run and 100001 USD onwards, should be paid 2 days after the payment run. This feature helps to manage the cash flow and funds in a better manner and won’t cause sudden plunge of bank account balance due to unexpected huge payments. Business will have enough

time to analyze the funds situation at any point in time.

Untitled.png

Value date calculation with bank calendar:

This has two steps.

Configuring value date rules:

Go to value date rules from FBZP as shown below. Enter the company code and proceed.

Untitled.png

Enter the house bank, account ID, Transaction name(Free field).

Untitled.png

Reference date for determining the value date: This can have below options.

1          Document date

2          Posting date

3          Due Date

Most of the cases, posting date is selected as value date base line date (Reference date).

Calendar 1: This is the factory calendar ID used for calculating the value date. Bank holidays defined in this calendar are considered while calculating value date.

+ or – sign indicates weather the number of days mentioned is to be added/subtracted.

E.G: If the value date reference is posting date, Payment run Posting date = 01.04.2014

Considering above screenshot,

If 1st April is a holiday as per calendar EC, then value date base line would be 02.04.2014.

If 1st April is a working day as per calendar EC, then value date base line would be 01.04.2014.

Deviation from reference date in days: Number of days mentioned here are added/subtracted based on the sign column to the value date base line date.

From above example, value date calculation happens as below

If 1st April is a holiday as per calendar EC, then value date base line would be 02.04.2014, value date = value date base line + 2 days = 04.04.2014

If 1st April is a working day as per calendar EC, then value date base line would be 01.04.2014, value date = value date base line + 2 days = 03.04.2014

Once transaction name with the value date calculation rule is configured, next step is to assign this transaction to payment method.

Go to below path in FBZP. Enter company code and continue.

Untitled.png

Enter the payment method, Transaction, House bank, account ID and the transaction name created above.Untitled.png

Don’t get confused with the transaction entered in second column with the one in sixth column. The one in second column is used for distinguishing different types of transactions for the same payment method. Below values are allowed here.

Space    Transaction not relevant

1           Bill/exch. for discount

2           Bill/exch. for collection

3           Check deposit at same bank

4           Check deposit in same region

5           Check deposit (general)

This allows to configure different value date rule for same payment method.

EG: If payment method A is used for check payments, check at same bank might need lesser time compared to check in different bank in same region.

Usually transaction in second column is maintained as blank. The one in sixth column is used for determining value date rules (Configured in previous step).

These steps completes the configuration of value date calculation. These rules would be used when payment media is generated and during value date calculation.

Note: Custom logic can be written in payment user exits if standard customization doesn’t meet the requirement.

Your valuable comments and addition of more information on this blog is most welcome 🙂


You can also check the connected blog on Bank/Factory calendar creation.


Bank/Factory calendar creation: Step by step process

Thanks,

V V

Assigned tags

      48 Comments
      You must be Logged on to comment or reply to a post.
      Author's profile photo Mohammed Kalim
      Mohammed Kalim

      Hi Vinod,

      Very informative document....Thanks for sharing... 🙂

      Regards,

      Kalim

      Author's profile photo Vinod Vemuru
      Vinod Vemuru
      Blog Post Author

      Thanks Kalim 🙂

      Author's profile photo Former Member
      Former Member

      Hi Vinod,

      Excellent document...Really Helpful.

      Thanks,

      M.Shiva Kumar

      Author's profile photo Vinod Vemuru
      Vinod Vemuru
      Blog Post Author

      Thanks Shiva 🙂

      Author's profile photo Former Member
      Former Member

      Dear Mr. Vinodji,

      Great Document, really very much helpful.

      One thing got to be accepted in SAP, no matter, Million times we visit the screen, still when someone points out and show that do you know here is one more treasure on the screen.

      Really, you are a true treasure hunter sir,.

      Thanks for sharing your valuable knowledge and experience which helps so many consultants.

      Kindest Regards

      p

      Author's profile photo Vinod Vemuru
      Vinod Vemuru
      Blog Post Author

      Thanks Pankaj 🙂

      You are absolutely right. Even the most familiar screens might have hidden functionalities which we tend to overlook.

      Author's profile photo Former Member
      Former Member

      Hi Vinod,

      Great Document and nice explanation with business process ..

      Keep it up ..

      Regards

      Suresh Lavu

      Author's profile photo Vinod Vemuru
      Vinod Vemuru
      Blog Post Author

      Thanks Suresh 🙂

      Author's profile photo Former Member
      Former Member

      Hi Vinod,

      Very informative document.

      Regards

      Diwakar

      Author's profile photo Vinod Vemuru
      Vinod Vemuru
      Blog Post Author

      Thanks Diwakar 🙂

      Author's profile photo Mariks .
      Mariks .

      Very good document...Thanks..

      Author's profile photo Vinod Vemuru
      Vinod Vemuru
      Blog Post Author

      Thanks Mariks 🙂

      Author's profile photo Former Member
      Former Member

      Very informative and helpful document.

      Very nicely written.

      Thank you for the contribution

      Author's profile photo Vinod Vemuru
      Vinod Vemuru
      Blog Post Author

      Thanks Sheli 🙂

      Author's profile photo Lakshmi Sama
      Lakshmi Sama

      Hi Vinod,

      Very informative and nicely articulated one.

      Thanks for sharing such a good document. Expecing more contributions from your end.

      Regards,

      Lakshmi S

      Author's profile photo Vinod Vemuru
      Vinod Vemuru
      Blog Post Author

      Thanks Lakshmi 🙂

      Author's profile photo Former Member
      Former Member

      very helpful presently im working on APP this will help me....Thanks 🙂

      Author's profile photo Vinod Vemuru
      Vinod Vemuru
      Blog Post Author

      Thanks dear. Glad to know it is helpful 🙂

      Author's profile photo C. Plato Brilla Bose
      C. Plato Brilla Bose

      Thanks vinod god bless !!!

      Author's profile photo Vinod Vemuru
      Vinod Vemuru
      Blog Post Author

      Thanks Bose 🙂

      Author's profile photo Former Member
      Former Member

      Hi Vinod,

      thank you for sharing knowledge ,you have shared lot of information for scn users.

      Regards

      Sada Bandla

      Author's profile photo Vinod Vemuru
      Vinod Vemuru
      Blog Post Author

      Thanks Sada 🙂

      Author's profile photo Former Member
      Former Member

      Hi Vinod,


      Thanks for sharing knowledge and such a good document. It's very helpful, presently working on APP

      Author's profile photo Vinod Vemuru
      Vinod Vemuru
      Blog Post Author

      Thanks Hari 🙂

      Author's profile photo Former Member
      Former Member

      Hi Vinod,

      Great job and useful info its very easy to understand. Thanks to share your knowledge.

      Lakshmi

      Author's profile photo Former Member
      Former Member

      Hi Vinod,

      My requirement is to handle value date depending on payment currency of the invoice and not the bank account currency.

      Have you an idea about this.

      I look in standard but I didn't find.

      I look also of possible user exit if you have to process value date.

      Thanks in advance

      Author's profile photo Vinod Vemuru
      Vinod Vemuru
      Blog Post Author

      Hello,

      You can use the payment medium user exit to change the value date based on your logic.

      Post complete requirement in forum to get more responses 🙂

      Thanks,

      V V

      Author's profile photo Former Member
      Former Member

      Thank you very much! It is really a very useful document 🙂

      Author's profile photo Vinod Vemuru
      Vinod Vemuru
      Blog Post Author

      Thanks Eric 🙂

      Author's profile photo Former Member
      Former Member

      What can I do for you? I think this doc completely deserves to increase your points in the forum.

      Author's profile photo Vinod Vemuru
      Vinod Vemuru
      Blog Post Author

      Hello Eric,

      Thanks a lot for the compliment 🙂 .

      However, asking for points is against forum rules. Any article/blog can be rated , liked and provide the feedback though comments as per reader's discretion. This would further motivate the author to post more knowledge artifacts /enhance the skills in case of any better suggestions from readers. Some experienced readers do add more information through comments.

      If you feel this blog would of help to others, you can share the same from top right corner by clicking the link "Share".

      Thanks,

      V V

      Author's profile photo Arvind Pereira
      Arvind Pereira

      Vinod,

      I would be clicking the link "Share"

      regards

      Arvind Leo Pereira

      Author's profile photo Vinod Vemuru
      Vinod Vemuru
      Blog Post Author

      Thanks buddy 🙂

      Author's profile photo Zatopek Ondrej
      Zatopek Ondrej

      Hi Vinod,

      very interesting blog. I was looking exactly for these settings. I would like to add one information. In order to be able to set up value date using this customizing in FBZP you need to tick the box "Payment per due date" in the FBZP -> payment method in company code customizing.

      Regards,

      Ondrej

      Author's profile photo Vinod Vemuru
      Vinod Vemuru
      Blog Post Author

      Thanks Ondrej. I was thinking, this would be used only for grouping of items. Will check further.

      Thanks,

      V v

      Author's profile photo Zatopek Ondrej
      Zatopek Ondrej

      So did I. But it really started to work for me only after I ticked the box. I did not test the grouping itself with this but I suppose that once you tick the box Single payment, there wont be any grouping.

      Regards,

      Ondrej

      Author's profile photo Former Member
      Former Member

      Hi Ondrej,

      Wondering if tick the 'Payment per due day', the baseline date of the value date calculation will  be the due date no matter what was set in OBBA?

      Author's profile photo Kumar Jaiswal Aditya
      Kumar Jaiswal Aditya

      Nice work Vinod keep up the good work

      Author's profile photo Vinod Vemuru
      Vinod Vemuru
      Blog Post Author

      Thanks Aditya 🙂

      Author's profile photo kumar uk
      kumar uk

      Such a detailed explanation for value date concept !! Kudos vinoth 🙂

      Author's profile photo Former Member
      Former Member

      Hi Vinod,

      One question that I want to ask here. Are both C1 and C2 creation and assignment mandatory for all payment methods?

      C1 = Country>Company Code specific Factory Calender which enables in calculating the Value date

      Can I not assign the same Calendar as C1 in C2 and then allow the system to identify the Alternative Rule based configuration to make payment if the Value Date = Public Holiday.

      Please correct me if I am going wrong here.

      Best REgards

      Subhasish

      Author's profile photo Eirikur G. Eyvindsson
      Eirikur G. Eyvindsson

      Methodical and adequate explanation in clear language.

      Thanks for sharing, Vinod.

      Best regards,

      Eirikur

      Author's profile photo Vinod Vemuru
      Vinod Vemuru
      Blog Post Author

      Thanks Erikur:)

      Author's profile photo Former Member
      Former Member

      Hi,

      Beautiful explanation.

      Regards

      Karthi

      Author's profile photo Vinod Vemuru
      Vinod Vemuru
      Blog Post Author

      Thanks Karthi:)

      Author's profile photo Former Member
      Former Member

      Calendar 1 is to avoid the baseline date of value date not to drop into a holiday.

      Calendar 2 is to avoid the value date itself being calculated not to be a holiday.

      Is this true?

      Author's profile photo Suresh Ganti
      Suresh Ganti

      Vinod,

      Beautiful document and very well explained in detail. We started using DME payment medium. We currently send current date as the Execution date in DME file. Business requested to add +1 or 2 days, so the vendors are not paid the same day.

      Your documentation clearly explains and I think it will resolve one of my problem.

      I have another question, when I run F110, can I group line items and tell the Bank that Invoice#1, 2, 3 will be paid on 10/05/2017 and Invoice#5, 6 & 7 will be paid on 10/09?

      Is it possible to send future dated payments to the BANK in the DME file and if "Yes" how can we achieve this?

       

      Thanks,

      Suresh G

      Author's profile photo Poonam Laddha
      Poonam Laddha

      very informative.

      This is specially needed while doing direct debit for sepa mandates.