May 13th 2021
Situation Handling – Case Invoice Skipped in Payment Advice
Updated as of release 2020
For those who do not know me yet, I am Betty Guédez, Finance Product Expert at SAP S/4HANA RIG and our subject for today is about Situation Handling, with a solution for a very common receivables business case.
In our changing world, with new challenging events showing up constantly, dealing with our daily routine and also with the unexpected take a lot of our time and attention.
Then we realize that our precious resource, Time, worth to be spent in enriching activities, more than any other. And this is valid for every area of our lives, personal, professional and social, of course.
Situation Handling is a strategic SAP product, which brings a real tool to handle tasks whose follow-up is easily forgotten, are time-consuming and on top of that, risky for business cash flow when unattended.
Past-to-due invoices, missed cash discounts, wrong referenced items, missing incoming payments are just a few examples of these critical activities.
Let me talk about one of the business cases under Situation Handling current coverage: Invoice Skipped in Payment Advice.
Suppose you are a receivables clerk and one of your customers informs you that they made a payment, let´s say, thru a wire transfer. Customer also tells you which invoices they are clearing with that payment.
Consequently you, as the receivables clerk assigned to the account, proceed to create a payment advice to clear the invoices, once the payment is effective and perfectly identified.
After the payment advice has been created, the receivables clerk must follow-up the invoices, payment advice and the incoming payment to clear the items properly and to make sure that the cash was received in the Company bank account.
This following-up process on a daily basis gets complicated with increasing number of customers and invoices to chase and also, with other responsibilities like reporting to managers, closing activities and so on.
What if the customer misses the payment of one or more invoices already due?
Now is when Situation Handling comes to play.
The detection mechanism used by Situation Handling is to search if there are more invoices due for this customer which were not covered by the payment advice.
If so, then calculates the total amount of these items missing from the payment advice and, if exceeds in more than 50% of the total payment advice, issues the message shown in the image above.
With this information, the receivables clerk is now able to take some measures, like communicate with the customer to find out when the missing invoices are going to be paid or even start a collection process if needed.
What we do to set up Invoice Skipped in Payment Advice Situation Handling? This is pretty simple and straightforward process:
First of all, your SAP user must contain the proper customizing business role, SAP_BR_BPC_EXPERT (or a custom version of it):
Then, in the Fiori Launchpad, look for the Manage Situation Types (F2947) app.
In the Search criteria of Situation Templates, introduce “skipped” and then the Situation Type FIN_PAYMENTADVICEINVOICESKIPPED shows up:
In the Detailed view, hit Copy and provide a name for your personalized Situation Type:
After that and if you choose to do so, adapt the message to be issued when the situation is detected. Save it.
Make sure you Enable it after saving and now your Situation Type is ready to work:
This simple process allows the receivables clerk to receive the alert in My Situations (F4154) app:
To get more details of Situation Handling and some product information about this specific business case, please follow the link Situation Handling : Invoice skipped in Payment Advice.
- Situation Handling: Use Case – Confirmation is Overdue for PR Item
- Getting Started with SAP Situation Handling
- Situation Handling: Use Case – MRP (IP)
I hope you like this blog post and find it useful.
Let´s keep safe and healthy
Brought to you by the SAP S/4HANA RIG