I am Colin Thomas. I am an SAP Treasury Consultant; I am SAP Treasury Product Lead in IBM India. I work for SAP Partner. I am into SAP Consulting.
The background of this blog is, there are a large group of banks globally, which don not provide return messages. A return message, (acknowledgement/Acceptance) services are not available. To track the payment receipt by the customer/vendor becomes a tedious task.
In a Treasury payment process, tracking the payments made to the customer/vendor until is it received by the customer/vendor is a challenging task. ISO20022/Bank and other related parties are working on Level 3 acknowledgment process, where we can track payment that is being credited to end customer/vendor. In SAP, there is a workaround which, helps a treasury department to monitor the payment process and is debited to corporate and credited to end customer/vendor.
In this blog, I am using a standard SAP BCM process which can help the business user to track the payment debited on bank statement to confirm that end credit to customer / vendor had received the payment.
And, I am explaining the movement of payment, stage wise on a bank monitor dashboard.
A payment is processed and collected into a batch on the 18-Sep-20. Payment by bank will processed based on the value date sent to bank. Value date sent was 21-Sep-20. Based on the value date, the bank processes the payment and sends an acknowledgement return message as “Accepted By bank” on 18-Sep-20.
On the Bank Monitor, the user can only see the BCM batch status as accepted on 18-Sep-20. The user is unable to ascertain the status of the payment sent to vendor. As payment was an advance payment, for a new vendor against a PO which, was urgently required.
On Bank Monitor, user can only see the BCM batch status as accepted on 18-Sep-20. User is unable to ascertain the status of the payment sent to vendor. As payment was an advance payment for a new vendor against a PO which was urgently required.
As there would be many payments made in a day, monitoring these payments is a task. As the payments are debited on next day’s bank statement (based on the value date of payment), monitoring of the payments becomes tough.
If it has to be reconciled, the treasury team must depend on GL team to analyze the bank outgoing GL account opens item and cross check with the bank monitor payment batches. A dashboard is required which, can have complete end to end status of the payment made, which can save man days in doing a reconciliation.
Current Business process
In a Standard SAP process, electronic bank statement uses interpretation algorithm to process the posting rules assigned to the external transaction. Interpretation algorithm “019- Reference No DMEE” has a function to identify the payment generated from DMEE payment medium structures. Interpretation algorithm reads the reference number generated by DMEE payment medium which is stored in REGUT tables in SAP.
BCM also uses reference number generated by DMEE structures to map the BCM batches.
Interpretation algorithm 019 calls the BCM batch table and update the bank monitor status “Statement Received” at payment document item level.
For the BCM batches which are with status Statement Received, imply that payment is being debited on a bank statement.
Following are the customization / oss notes to be implemented
- Implement OSS notes 1766819
- The function module SET_STATEMENT_DATA_FROM_BELNR created in the correction instructions must be called in the user exit 001 (see SAP Note 494777, point 1) of the report RFEBBU10 for bank statement processing. The field I_BUKRS of the function module SET_STATEMENT_DATA_FROM_BELNR can be determined with the value of the field e_febko-bukrs, and the field I_BELNR can be determined from the table t_febcl with the entry selfd = ‘BELNR’.
- Assign interpretation 019 to external transaction
- Assign processing type clear with allocation
Alternative work around solution
Enhancement/user exit on standard code with the following logic
- Pick the document number from line :61: or :86: of bank statement depending on the bank statement
- In the selection screen of table REGUP, pass the document number “BELNR”
- Pick up “ZBUKR “ company code, “LAUFD” Run date and “LAUFI” Identification
- Pass the run date and identification along with company code into table REGUT
- Pick up the filed “RENUM” reference value
- Pass the DMEE payment reference into bank statement processing to update the status of BCM batch using interpretation algorithm “019”
Reference SAP OSS notes
- 1766819 – “Stmt. Received” status due to payment document number
- 1768469 – BNK_MONI: incorrect “Statement Partially Received” status
A brief on the tabs available in Bank Monitor for better analysis
- Payments are collected and a new batch is created. It would be update in “New” tab of BNK_Moni
- If BCM approvals are being configured. The moment, first approver, approves the batch. The batch is removed from “New” tab and updated in “In Approval” tab
- Once the batch is approved by BCM approver, it removed from “In Approval’ tab and gets updated in “Approved’ tab
- Based on Return message received from SWIFT/Service Provider, batch is removed from “Approved” tab and updated in “Sent to Bank” tab
- Last status which can be updated in BCM is “Accepted by Bank”. It is understood that the bank has received payment instruction and payment file structured is accepted and its ready for processing based on the value date.
- Based on the white paper solution, after implementing “019” interpretation algorithm, once bank statement is posted with the document number. BCM batch will get updated with the status “Statement Received” in bank monitor and moved the batch to Completed tab
Bank Statement posting
Bank monitor status can also be updated with a Bank Statement posting into SAP. Based on interpretation algorithm “019”, the Bank monitor status can be updated as “Statement Received”, once the payment document is debited on a bank statement. And BCM payment batch will be updated into Completed tab of bank monitor. End to end monitoring of outgoing payments can be monitored on Bank Monitor with the batches updated into Completed tab in bank monitor.