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Payment order is  a Standard SAP tools used in payment process .. its firstly assign a payment order number against the open item paid with no payment entry generated then when processing bank reconciliation if the payment order appear in bank statement the system generates the payment entry and close the open item.. assignment of payment order number is preventing from duplicate payment ..


The configuration steps is:

T-code: OT84

          – ( Create account symbols) Y12 “Payment Order”

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  • (Assign Accounts to Account Symbol ) assign Y12 to GL Account ++++++ as below

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  • (Create Keys for Posting Rules) create a Keys for posting rule Y12

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  • (Define posting rule)  define a posting rule like below

Posting Area 2 “Sub ledger posting “

Document Type: KZ

Posting Type : 7 “clear Debit Sub ledger account

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  • T-Code FBZP “ Pmnt method in country” in posting details section choose Payment order only


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  • T-code OT52 create manual bank statement posting rule

Interpretation Algorithm : 29 “Payment order”

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  • T-code: OT43 Define Variant for Manual bank Statement

You have to add the payment order to variant

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  • While Run F110 , SAP will create payment order Number for the selected invoice to be paid
  • You can display the payment order created from F110

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  • When Run FF67 .. you have to enter payment order Number

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  • SAP will create the below entry and clear the open item

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Note that the payment order will not appear in FBL*N report due to standard SAP behavior .. you may refer the below link to insert the  payment order number in FBL*N report

How to insert Payment Order in FBL1N or FBL5N

Regards

Mahmoud EL Nady

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32 Comments

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  1. Roger Sunny

    While running F110, I get an error saying “Payment Run has been Cancelled”. Would you know why this error might occur? I have followed all required settings for Payment order and I’m not able to figure out the problem.

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    1. Mahmoud Elnady Post author

      Hi Roger

      For this issue you have to check the error log in F110 It should give the reason for cancelling the payment run.

      The reasons could be as below: 

      The open invoice items may not be due or overdue for payment.

      Depending on the next run date, APP might have not picked the open items for payment.

      The open item might have been blocked for payment.

      The vendor master record itself might have a payment block.

      Regards

      Mahmoud El Nady

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  2. Raghuveer d

    Hello Mohmoud,

    I am new to this so please forgive me if i am asking a stupid question.

    Is this functionality used for lock box related files BAI where the files are send to the client from bank and using them the client clears the open items

    Thanks in advance

    Regards

    Raghuveer

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    1. Mahmoud Elnady Post author

      Hi Raghuveer

      Thanks for your comments  and welcome to SCN.. unfortunately my knowledge in Lock box is limited.. you may post your question and you will find experts that they willing to provide helps..

      Regards

      Mahmoud EL Nady

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    2. S J

      Payment order have nothing to do with lockbox. Payment order has being explained here very well by Mahmoud Elnady.

      Lockbox-Imagine a scenario where one company has 1000’s of customers and all customers are instructed to sent invoice payment to the company’s bank branch address (not directly to the company address). Once bank receives these checks/payments, they will process all the payment and credit the amount to the company’s bank account.

      All processed customer payment details are sent to the company through a file which is generated by the bank processing software. That file type can be BAI, BAI2 etc. Once the company receives that file from the bank, it is uploaded to the R3 system and all the customer payment will get credited instantly at one shot. Very simple, but very powerful.

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      1. Raghuveer d

        Hello Sam and Mahmoud,

        Thank you very much for your reply and your explanation. 

        What i am trying to understand is that can this be applied to Lockbox scenarios.

        What i understand from the above is that the open items will be assigned a particular payment order number and while reconciling they will be cleared using the payment order number.

        Keeping the above in mind when we receive the BAI files from the bank, using them we have to clear the open items (since the payments are made to the bank directly) then in that case we can use this file and create a posting rule and clear the open items.

        Is this possible. Please advise

        Regards

        Raghuveer

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        1. S J

          Payment order is a type of payment method, where the payment is done, but the paid items are not cleared until it appears on the bank statement. So when the ebs statement is uploaded and payment order is entered the all the relevant invoices with the payment method is selected and posted. Bank has no role here.

          Lockbox-main purpose is bulk process of customer payments.In lockbox case,bank plays the main role. Processing all payments, crediting the amount, sending payment file to the client. Charging for their services. any mass correction etc…

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  3. Rohit raj

    Hi Mohammed,

    Superb document. I really like to appreciate the efforts you are putting to share your knowledge. Keep up the good work. We expect many more new concepts to come from you.

    Regards,

    Rohit Raj….

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  4. Hidyath pasha

    Hi Mahmoud El nady,

    Superb once again , great to see this kind documents so we can new things .

    but we have doubt here payment order will not work for WHT is it ? for payment .

    Thanks

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      1. Mahmoud Elnady Post author

        Hi

        I checked for WHT  .. if I keep the WHT information in the posted invoice , its take effect while posting the payment clearing entry as per last screen shot in the document. . Thanks for your comment.

        Regards

        Mahmoud el nady

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  5. Sanjai Babu Kopuri

    Hi Mahmoud,

    Its really a good document. Appreciate for sharing.

    I have a query.

    a) In the posting rule ( Y12) screen shot , you mentioned only a single posting rule meaning

        Vendor Acct      Debit

        Bank Main Acct Credit

        But if the company has sub account scenario, can this be addressed with another

        posting rule with a posting area “1”  to address GL posting.

    b) In the posting rule Y12 screen shot, why is posting key ” Blank” under DEBIT tab?

    Rds

    Sanjai

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    1. Mahmoud Elnady Post author

      Hi

      In my opinion that the transfer when it appears in bank account does not need to post to reconciliation accounts.. as if you post it to recon account , subsequently you need to post it to main account..

      Thanks for your useful tip..

      Regards

      Mahmoud El Nady

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  6. Edmond Chung

    Hi Mahmoud,

    could you capture the parameters for FF67 as I tried it which always show “First statment” message and I see your current screen capture, the posting don’t have bank reference field, it seems not match with OT43 configuration, thanks.

    Regards,

    Edmond

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    1. Mahmoud Elnady Post author

      Hi

      Thanks for your comment..could you share screen shot for your error. bank reference in my case is used to match checks that cashed from bank with the checks issue ..

      Regards

      Mahmoud

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