Mahmoud Elnady

July 12, 2015 2 minute read

Payment Order Configuration

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”

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

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

(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

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

T-code OT52 create manual bank statement posting rule

Interpretation Algorithm : 29 “Payment order”

T-code: OT43 Define Variant for Manual bank Statement

You have to add the payment order to variant

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

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

SAP will create the below entry and clear the open item

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

35 Comments

You must be Logged on to comment or reply to a post.

Former Member

July 13, 2015 at 5:27 pm

Wonderful document. Keep up the good work. Thanks for the time and effort behind this.

Mahmoud Elnady

Blog Post Author

July 13, 2015 at 5:32 pm

Hi sam

thanks for your valuable feedback. .

Regards

Mahmoud El nady

Former Member

July 15, 2015 at 9:58 am

Thanks a million Mahmoud for your usual great Innovation

Mahmoud Elnady

Blog Post Author

July 15, 2015 at 10:26 am

Hi Emad

Thanks for your Encouraging words..

Regards

Mahmoud EL Nady

Prakash Sutar

August 7, 2015 at 7:38 am

Hi Mahmoud,

Useful document. Keep it up.

Regards,

Prakash

Mahmoud Elnady

Blog Post Author

August 7, 2015 at 7:52 am

Hi Prakash

Thanks for your valuable feedback. .

Regards

Mahmoud el Nady

Roger Sunny

August 13, 2015 at 9:36 am

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.

Mahmoud Elnady

Blog Post Author

August 13, 2015 at 10:20 am

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

Roger Sunny

August 14, 2015 at 6:04 am

Shukran Mahmoud

Regards

Roger

Mahmoud Elnady

Blog Post Author

August 14, 2015 at 8:12 am

You are most welcome Roger..

Regards

Mahmoud EL Nady

Raghuveer d

August 13, 2015 at 3:20 pm

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

Mahmoud Elnady

Blog Post Author

August 13, 2015 at 6:17 pm

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

Former Member

August 14, 2015 at 3:46 am

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.

Raghuveer d

August 14, 2015 at 3:57 am

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

Former Member

August 14, 2015 at 4:08 am

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...

Mahmoud Elnady

Blog Post Author

August 14, 2015 at 8:12 am

Hi Sam

your explanation always is very helpful .. Thanks

Regard

Mahmoud El Nady

Ranu Eugene

August 14, 2015 at 8:32 am

Hi Mahmoud Elnady

Thanks for sharing such a good document.

Very well explained with screen shots.

Keep up the good work. 🙂

Best of Luck 🙂 🙂

Regards

Eugene

Mahmoud Elnady

Blog Post Author

August 14, 2015 at 3:00 pm

Thanks Ranu.. appreciate your positive feedback. .

Regards

Mahmoud el nady

Oceans Blue

September 3, 2015 at 7:21 pm

Thanks for sharing......... Great work man !

😎 🙂

Mahmoud Elnady

Blog Post Author

September 4, 2015 at 6:22 am

Thanks for your feedback. .

Regards

Mahmoud el nady

Mohammed Kalim

September 4, 2015 at 5:38 am

Hi Mahmoud,

Nice document.

Mahmoud Elnady

Blog Post Author

September 4, 2015 at 6:24 am

Hi Mohammed

Appreciate your feedback ..

Thanks

Mahmoud El nady

Rohit raj

September 4, 2015 at 7:04 am

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....

Hidyath pasha

November 14, 2015 at 11:11 am

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

Mahmoud Elnady

Blog Post Author

November 14, 2015 at 12:17 pm

Thanks again for your valuable comment.. i will test it and update the document once available..

Regards

Mahmoud El Nady

Mahmoud Elnady

Blog Post Author

November 15, 2015 at 6:14 am

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

Sanjai Babu Kopuri

February 23, 2016 at 9:59 am

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

Mahmoud Elnady

Blog Post Author

February 28, 2016 at 7:24 am

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

Former Member

April 2, 2016 at 3:24 am

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

Mahmoud Elnady

Blog Post Author

April 5, 2016 at 6:34 am

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

Former Member

May 2, 2016 at 10:03 am

Hi,

Nice document. Thanks for detailed explanation.

Regards

Karthi

Mahmoud Elnady

Blog Post Author

May 3, 2016 at 7:44 am

Hi Karteek

Thanks for your encouraging words.. Hope you find it useful .

Regards

Mahmoud

LOKANATH REDDY

May 8, 2019 at 10:01 am

thanks for giving useful information

Virginia Fortin

February 20, 2020 at 11:03 pm

Hello

Mahmoud

Thanks for this document

I have a question, in OT43 how can I add fiel payment order ?

Dan Goodhart

October 23, 2020 at 2:27 am

This is an awesome document. Thanks for sharing.

Payment Order Configuration

Assigned Tags