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Author's profile photo ANIL KUMAR SAHU

Payment request Grouping in TBB1( + – Non-identical Flows)

Introduction:

In many of the complex business scenarios, payment is a crucial part. There are many types of payments happens in SAP. In this blog we will discuss about payments in case of treasury system or Product types are involved.

In general SAP creates individual l flows and individual payment request for each flow for a Money market instrument. Once the payment request generated, F111 program will pick pick to generate the payment medium, which in fact reach bank for necessary action.

we are fine when there is only one outgoing payment is due which will create only one payment request and the payment also. But what we do if, for a same business partner both incoming and outgoing flow are generated on a particular due date; for example, you have to make payment of interest by deducting the charges/ commissions from it.

Here business expect to make only one payment by netting together all flows. How can we achieve this in SAP Treasury

Lets discuss the same with a real time example.

 

Scenario:

In the below screenshot (Cash Flow Tab of a Contract in SAP Treasury) , we can see, there are four outgoing flows of Nominal interest is due along with one charges, which need to be deducted while making payment. So the Net amount need to be paid to the Business Partner. (Lines with – symbol denotes the outgoing payment while + denotes the incoming payment) 

To achieve the same we have make the below configurations in System.

  • Create two Payment Methods (I for Incoming and T for outgoing). Please note the single pmt should not be ticked as highlighted below. The Payment method can be created in FBZP. You can refer the below link to understand the FBZP Configurations.
  • The relevant setting maintained here are highlighted in Yellow.

 

  • Do the necessary FBZP Configurations. ( in FBZP, we need to create the payment methods in Country and Company Code, assign the proper DME, and the ranking order, amount etc.
  • Now we have to come to Go to the contract, Payment Details TAB (FTR_CREATE/ FTR_EDIT)
  • Enter the Payment Method and Group Determination as follows.
  • The group determination for flows will generate individual flows, however will be merged at the time of payment request.

 

         4.Now run the F111 ( Payment program for Treasury)  with the required parameter and check the payment log as below

        5. You can see in the above screenshot, individual payment requests are created with different keys and the netted amount is 29258.58. Our payment file to the bank should contain this amount instead of individual amounts.

6. We can see the same in the below DME. This is clubbed as all the payment request generated before has only one reference, so the system will sum total the payment request having common reference.

DME

Conclusion & Business Benefits:

This case is more common in case there is some outgoing payment by the organization and at the same time some charges or commission need to be paid by deducting the same from the payment amount, So that System net off and pay only the netted amount. Else there will be multiple transactions with the bank along with the transaction charges.

So this practice can be followed in case of netting of payment is required at the contract level to achieve the desired result.

 

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      Author's profile photo Ramesh Das
      Ramesh Das

      Very nice blog Anil. I applied it in my learning. Thanks a lot for sharing.