Payment approvals configuration using BCM in SAP S/4HANA
SAP Bank Communication Management helps in managing multiple bank interfaces. It helps in communication with the bank and also helps in tracking the entire life cycle of a transaction.
Bank Communication Management is also responsible for the creation and approval of batches, the payment status monitor, and the bank statement monitor.
In this blog post we will concentrate on the configuration relevant for creation and approval of batches for the payments.
This blog post will explain the configuration and master data settings required for the BCM payment approvals in Integration with BAM payment signatories.
In this blog post following abbreviations are used
BCM – Bank Communication Management
BAM – Bank Account Management
FSCM- Financial Supply Chain management
CLM – Cash and Liquidity Management.
The following pre-requisites are required to go ahead with the configuration for payment ap
- Business Function FIN_FSCM_CLM is active
- In the General settings for cash management Cash scope should be Full Scope. (can also navigate through SM30 in the table/view FCLM_CONFIG2)
- The configuration for Payment Medium Workbench is in place.
Now let’s look at the basic configurations required under BAM
Define Settings for Bank Account Master Data
Go to SPRO >Financial Supply Chain Management > Cash and Liquidity Management > Bank Account Management > Basic Settings > Define Settings for Bank Account Master Data
Account Type Definition
Here we have to create the Bank Account types, by default there are account types. This account type would be used in the bank account master.
Define Signatory Groups
Signatory Groups are created for each level of approval. In the above case I have considered 2 levels.
In the bank master we can assign multiple users to each signatory group, meaning approval from one of the approvers in this group would be enough to move to the next level.
Define Approval Patterns
Approval Pattern determines the sequence of the approvers.
Approval Pattern can be sequential or non-sequential. In case of non-sequential minimum of two levels is required.
Below is a sample pattern P001 for 2 levels of approval in sequence, if the amount is greater than 10,000$. In this case if the amount is less equal to 10,000$ PMW file would generate after the first level itself.
Assign Approval Patterns
Here we assign approval patterns to the combination of Company code and Account type.
I have assigned below the Pattern P001 to Account type 02 for my company code 1100.
In case of multiple Patterns to same combination we can set the priority. Priority 0 (blank) takes the precedence.
Maintain the Event Type Linkage for Triggering Workflow Processes
Go to SPRO > Financial Supply Chain Management > Cash and Liquidity Management > Bank Account Management > Maintain the Event Type Linkage for Triggering Workflow Processes
Here we assign the Workflow to the Object type and event. This would be default available, just have to confirm if the Type Linkage is active.
Enable Signatory Control
Go to SPRO > Financial Supply Chain Management > Cash and Liquidity Management > Bank Account Management > Enable Signatory Control
Now let’s look at the configuration required under BCM
Go to SPRO > BCM > Basic Settings > Basic Settings for Approval
In this activity, we need to maintain the “Rule Currency”, “Exchange Rate Type”, “Days re-submission” and whether “Signature” is required or not.
Go to SPRO > Financial Supply Chain Management > Bank Communication Management > Payment Grouping > Rule Maintenance
Here we have to create rules for group of the payments, based on these rules the payment documents would be merged and batches would be created. The batches are sent for approval not actually individual payment documents.
We have to set the priorities correctly in the rules here. 0 has the highest priority followed by 1,2..
In case, if the payment document satisfies the conditions of 2 rules then the document would be merged in the batch with the rule set with highest priority.
Note: Merge id should not be there in the rule as FBPM1 is being called automatically in the background when Automatic payment program is run via Fiori apps.
Additional Criteria for Payment Grouping
Go to SPRO > Financial Supply Chain Management > Bank Communication Management > Payment Grouping > Additional Criteria for Payment Grouping
Here we assign the group by which the payment documents should be grouped in the Payment file.
Note: Grpng Field1 should be always HKTID for the workflow to trigger based on the signatories in the Bank Master Fiori app. The Grpng. Field2 can be as required.
Mark Rules for Automatic Payments (No Approval)
Go to SPRO > Financial Supply Chain Management > Bank Communication Management > Release Strategy > Mark Rules for Automatic Payments (No Approval)
Incase if we don’t want to trigger the approval process for certain payments, then we can create a separate rule for this purpose and check Auto payment as shown below. Then it will skip the process of batch merging, hence direct file generation.
Go to SPRO > Financial Supply Chain Management > Bank Communication Management > Release Strategy > Digital Signatures:
- Define Basic settings
Here we need to maintain the SSF information under the communication tab of the user id’s of the approvers. Refer to the below note 2774821 on Digital signature in BCM for further information.
- Specify Signature Method for Approval Using Simple Signature
Here we can maintain the signature method for approving payments, for example using password verification when making approvals.
Now let’s look at the Settings required in the Bank Master
Goto Fiori Launhpad > Manage Bank Account app.
Here the Bank account is created as required, then Navigate to the Signatories Tab and Maintain the Signatories as shown below.
- The configuration of creation of rule and assigning to the release steps would not be required anymore in SAP S/4HANA, as the Signatories in the Bank master would determine the approvers of the batch.
- The following BADI can be used to reverse original payment documents in case of rejection or resubmit of the batches.
Now we learnt what are the configuration settings and the master data required for the Payment approvals using SAP Bank Communication Management in SAP S/4HANA.
References and other related useful links.
- 2852487 – Users are not visible under “Payment Signatories” in Manage Bank Account App
- In order to have User ID’s and their Names to be displayed in Payment signatories we need to create Employee and assign to Business partner. Refer to this blog for the steps. https://blogs.sap.com/2019/07/17/employee-as-a-business-partner-and-synchronization-with-hr-data/
- 2774821 Digital signature in BCM
Thanks Omprakash for the detailed and structured blog on BCM..
Nice Blog OM
Nice one, OM....If you have possibility add the test scenarios.
I’m planning to do that, in near future.
Hi Om Prakash,
I have a doubt in changing the status of the batch, once we send the DME file for a payment batch we receive acknowledgement and acceptance (BAB status) files from bank and the batch status in BNK_MONI will be received by bank.
Is there any way we can change this status (received by bank) to (Rejected by bank)?
We manually tried sending rejection letter for the same batch but its throwing error saying status set to BAB
Please let me know if you have any solution for this
Thanks & Regards
Madan Kumar V
This has to happen based on the actual file receipt from the bank on the status of the payment.
If the Bank Rejects a payment for some reason then it would be under exceptions.
Manually we can not set the status like Rejected by bank.
Thanks for sharing Om, very informative blog.
very good blog Om
Nice blog Om.
Thanks to sharing your knowledge with us
Fantastic explanation on the subject, help us a lot
Very Nice blog
Thank you so much for sharing this information. It was really helpful. Thanks a ton again!!
Thanks for the blog. I have a scenario for client, they have two level pattern to approve payments. So they want to the system permitt add the same user in both two level for example:
G001 User 1
G001 User 2
G002 User 3
G002 User 1 (but this line the system is not permiit to enter, because the User 1 is in the Pattern G001)
do you know what would needs to be considered when we want to migrate from the old workflow (BNK_INI & BNK_COM) to the new system via BAM?
Hi Omprakash, Thanks for the detailed blog.
I have a question that where do we modify the file path for both Outbound Bank interface for FAB - vendor payment & Payroll as well as for Inbound Bank Interface FAB - EBS, ACK/NACK.
Is there any way I can delegate the approver without maintain the user in approver list ?
Suppose user A has update as the approver and user A want to delegate those payments to user B but user B is not part of the approver list.