Professional Documents
Culture Documents
Advance Payment Management
Advance Payment Management
ADVANCED PAYMENT
MANAGEMENT IN
SAP S/4HANA
FINANCE
It integrates with other areas within SAP S/4HANA such as In-House Bank, In-House Cash,
Cash Management, Bank Communication Management, Bank Account Management, and
General Ledger.
Source: SAP
As organizations scale up, there is a significant increase in payment volumes and hence
need to automate, streamline, and optimize the end-to-end payment process across the
entire group. Headquarters need the centralization of the payment approval and monitoring
for subsidiaries by using a single source of truth. They need the ability to handle different
payment formats centrally and automate the routing of payments to different financial
institutes.
Source: SAP
The system uses Bank Account Management to determine the bank account to be used,
triggers approval through Bank Communication Management, and once approved creates
the external medium for transmission to the bank using Multi-Bank Connectivity.
SAP S/4HANA Finance for advanced payment management provides a centralized payment
factory to manage payments from various systems – SAP, non-SAP, and manual payments.
In this blog, we are majorly focusing on the scenario payments ‘in name of’ with forwarding
only and its basic configuration.
Source: SAP
In the following, I will describe the available configuration which is used for this scenario as
well as the master data which needs to be created to support the scenario.
Clearing areas act as an org object under the client level. Users working in one clearing area
do not have access to data in other clearing areas. One clearing Area we can make work for
multiple company codes with different currencies.
The number range numbers are assigned to diverse number range objects in advanced
payment management. A number range object is uniquely identified by its name, and you
can assign a number range number starting with 01 and an end value of 99.
With the number range numbers defined here, you can customize the number ranges for the
following objects:
/PF1/COLL: Number Range Object for Collectors > Not used in the Project.
/PF1/CSTID: Customer IDs for service level agreements > Not used in the Project.
/PF1/FH_OL: Number Range Object List Number (Secondary Key)
/PF1/PO_PI: Number range for Payment Transactions (Secondary Key)
/PF1/PO_PO: Number range for Payment Order (Secondary Key)
/PF1/PO_RE: Number range Object for Recalls > not used in this Project.
A clearing area always requires a payment order number range before payment orders can
be processed in that clearing area. The payment order number is then populated in the Input
Manager. You create a payment order number range for payment orders and define whether
or not the payment order number is assigned internally by the system.
Payment order types are defined for both incoming and outgoing payment orders. Every
payment order needs exactly one payment order type.
The payment order types that are defined here are assigned to incoming & outgoing
payment orders by format converters.
The payment order tells the system what checks to carry out on the payment order and its
components.
While payment order categories are delivered as part of advanced payment management,
payment order types can be used as incoming or outgoing order.
If the payment item numbers are assigned internally then they are assigned incrementally.
Customizing allows you to set the lower and upper limits for a payment item number. The
last number to be assigned is also visible in this activity.
The transaction types are assigned attributes that determine the processing of payment
items. They can determine whether the amount is a credit or a debit and which validations
should be carried out during posting.
Originator: – An item posted to the party initiating the payment order. (Company Code)
Recipient: – An item posted to the party receiving the payment. (Beneficiary Vendor/
Customer)
Clearing: – A special category of payment item used for internal posting. During the
clearing process, a clearing item is generated either when a payment batch is closed or
when a single payment order is forwarded. For clearing batches, the clearing item is
posted on the bank clearing (nostro) account. For internal batches, the clearing item is
posted on the customer account.
Turnover: – A special category of payment item that does not have an ordering party or
recipient characteristics. Turnover items are usually generated by internal settlement
systems, for example, when security transactions are handled or interest is calculated.
The relationship between payment order type and its allowed transaction types. The Order
and Repair user interface uses this information to display allowed transaction types.
Maintain the Bank Communication Management (BCM) rule IDs that are used in BCM
workflow configuration for payments that are passed from advanced payment
management. You can map it based on order type, Company Code, House bank & Account
ID
SetUp Converter
Maintain the format in which data is passed into and out of advanced payment
management. The format describes the structure of the fields and records of the payment
objects that are used in advanced payment management.
Define Media
You maintain the medium used to deliver data to and from advanced payment
management. The medium along with the channel and the format defines a converter.
Define Channels
If the file to be imported is a standard XML file, we would use the standard inbound
conversion of the XML conversion framework. Its class is
/PF1/CL_IPM_P_XML_FORMAT_CONV, however, you do not have to enter the class, it would
be derived automatically.
If Schema and tag validation was already done in your source system and if you want
forward this format without any change or validation than it is recommended to use the flag
‘Forwarding’. The partial Rejection is not possible always processing happen at file level &
Enrichment validations & Exceptions are possible at file level.
If you are using the Multi-Bank Connectivity (MBC) local routing functionality than it not
required to configure the Directory logical file Name & Logical File (in this scenario we are
using the MBC local routing)
Note:- If you are not using the MBC local routing functionality then it is mandatory to
configure the Directory logical file Name & Logical File.
For the outgoing Payments I am using the order type”000200” for Clearing area SAP001 in
the below screenshot which I configure.
PAIN.001.001.03 Message Type Inbound Handler with Help of MBC and F110 Automatic
payment program
We are assigning the Incoming order type is assigned to Converter ID as per the above
Screen Shot. The Order type we are assigned it to Transaction type at clearing area level.
Originator: – An item posted to the party initiating the payment order. (Company Code)
Recipient: – An item posted to the party receiving the payment. (Beneficiary Vendor/
Customer)
the converters map the data received from the source system to advanced payment
management meta format in the Output Manager (OPM)
If we are using the XML conversion framework Converter class for outbound file-based
conversion it is a standard class in which we use the configuration
/PF1/CL_OPM_P_XML_FORMAT_CONV,
if you want forward this format without any change or validation then it is recommended to
use the flag ‘Forwarding’.
we are using the Multi-Bank Connectivity (MBC) then it is not required to configure the
Directory logical file Name & Logical File ( in this scenario we are using the MBC local
routing)
we use the Multi-Bank Connectivity (MBC) then it is mandatory to configure the Class
“/PF1/CL_OPM_OUTPUT_STREAM_MBC” or it will not create an out file which we need to
send to its bank.
Note:- If you are not using the MBC functionality then it is mandatory to configure the
Directory logical file Name & Logical File. It is recommended to configure the class
/PF1/CL_OPM_OUTPUT_STREAM_FILE, if you have not configured also by default it will pick
up the class as /PF1/CL_OPM_OUTPUT_STREAM_FILE
In the case of local routing, an outgoing message is not sent to SAP Multi-Bank
Connectivity. Instead, a new inbound message is created using the outgoing message. The
new inbound message is handed over to the Connector for SAP Multi-Bank Connectivity for
inbound processing.
The XML schema definitions can be used in the IPM/OPM XML Format Converters.
As a basis template for an XML converter implementation. For more information, see
Message Identifier for an XML Converter.
As a rule, set for an individual schema validation of XML files. For more information, see
Identifier of an XML message that defines an XML schema definition (XSD).
In the standard system, some standard XML schema definitions are available for
implemented converters. If required, you can update these schemas with adjusted versions.
The customizing table is protected against SAP updates. SAP is allowed to insert new
entries only.
Choose Upload to upload a new XSD file from your local PC.
The following data has been entered to have the ISO_PAIN.001.003.03 in the system
available:
Choose Upload XSD File to store this schema definition in the Customizing table.
Depending on the standard client transport settings, you may need to create a transport
request.
The Customizing transaction enables you to display each schema definition in a detail tree
view with the different types of validations (for example, patterns or digits) for each node.
Test the XML schema validation on individual XML files by choosing the Test Schema
Validation button.
To replace individual invalid XML values and to control errors from the XML schema
validation more flexibly, you can use the BAdI: Replacement of Invalid XML Values During
Read Access.
the converter implementation from the settings in this Customizing activity. You can either
directly assign a specific converter implementation or specify a converter package.
Converter packages can provide automatic converter implementation derivation by using
the BAdIs listed at the end of this section.
You need to specify the correct converter implementation for output converters. You assign
the general XML output converter /PF 1/CL_OPM_P_XML_FORMAT_CONV for your format
converter regardless of the XML format. This activity enables you to inform Output Manager
of the type of XML format that has to be created.
You can also use the following BAdIs to overrule the customizing settings:
A converter that converts the incoming payment order information into business objects of
advanced payment management is determined based on format, medium and channel. One
business object that is created is the business object “Object List”
the determination of the internal payment order type. The system uses this control
information for certain validation and processing throughout advanced payment
management. You define this information in the payment order. The combination of
message type and original message type allows the system to distinguish uniquely between
credit transfers and direct debit and between -bank-to- bank R-messages (reject/return).
the system determines the internal transaction type. You define the transaction type for the
payment item in customizing (see below). This control information is used for various
validation and processing steps throughout the system.
the system will use the most specific (bank-specific) entry. If no matching entry for the bank
is available, the generic entry without a bank identifier will be applied.
If no specific reaction type is defined, the ‘ Define Default Reaction Types’ or Master data
configuration will be used for the standard error code ‘Bank Reject(002010)’.
Maintain inbound settings for Multi-Bank Connectivity (MBC) messages received via the
Multi-Bank Connectivity Connector. We can configure the Convertor ID based on Sender ID,
Receiver ID, Message type, and Origin ID.
With the help of MBC Local Routing functionality, once we ran F110, the XML will be routed
with the help of MBC and handed over to APM
the outbound settings for sending messages via the Multi-Bank Connectivity Connector to
Multi-Bank Connectivity (tenant).
Exception Handling
the priorities of all existing response types. The response types, regardless of the group, are
listed with their respective response type groups in number format and a short and long text
description.
Only the response type priority is set in this activity. You do not create or modify any existing
information regarding a response type or a response type group.
you can create response types for rejection of payment orders and/or payment items. You
assign an existing return reason and a final response type to the new response types.
You can use the dropdown box in the Partial column to specify whether the payment orders
are to be rejected in full, or whether only incorrect items are to be rejected, and processing
is to continue. If you do not specify a value in this column, the system rejects the payment
order in full. You can also specify the correspondence type required in each case.
Payments are running into erroneous situations based on various reasons. Instead of
pushing these payments back to the local subsidiary systems, the solution allows to fix
these errors in a central place, either manually or automatically.
Displays options for Enrichment and Validation, Notifications and Charges for which you
can define set of rules and restrictions in detail. Mark the relevant checkboxes in the
Options section. The corresponding tab pages will be displayed.
Routing Objects
Based on the predefined Business rules such as Incoming order type, Bank Key, Account
Number, and originator the Route and clearing agreement will be identified based on the
clearing area.
We can use all attributes of payment like amount, currency, country, payment type, and
priority, and additional attributes like time, and % distribution of payments
Cut-off times
Percentage of business
Beneficiary bank
Available liquidity
Adherence to the due date
Transaction Currency
Payment Scheme compatibility
Amount limits
Payment Type
Link payment formats, cut-off times, bank account details, bank clearing account, etc. in one
place with central governance and approval processes
Apart from the Payment run job, the MBC FSN job got triggered automatically and the
Small_POP job for the APM file import.
In the below screenshots it has been observed that the file has not been set out it has been
locally routed and handed over to APM
In the relation ship tab you see the both incoming and out going orders
In the Fiori Notifications you observe the APM batch approval notification which has to be
approved
Got the APM (Advanced Payment Management APP’s and select the Manage Payment)
Based on the Selection it is displaying two orders which represent incoming order and
Outgoing order based on the
Incoming order is getting created based on MBC Local routing based which file has been
handed over to APM
For Each outgoing order, it has three Segments Originator, Recipient & General Order Data
Originator: – Sending Company code information, Send bank Account Information, Service
Level Agreements, route, Clearing Agreements & Process flows
Recipient: – Beneficiary Bank Account details, EndtoEndID, Service Level Agreements, route,
Clearing Agreements & Process flows
Based on the Incoming order system is processing data and do required data validations in
the APM and create the Outgoing order based on that APM batch will the created which will
updated in the BNK_MONI (APP, Monitor Payment )
Note:- For Approvals We are using BCM frame work with APM information
For Each outgoing order, it has three Segments Originator, Recipient & General Order Data
Originator: – Sending Company code information, Send bank Account Information, Service
Level Agreements, route, Clearing Agreements & Process flows
Recipient: – Beneficiary Bank Account details, EndtoEndID, Service Level Agreements, route,
Clearing Agreements & Process flows
Once the APM batch has been Approved with help of BCM Transaction (BNK_APP) or Fiori
APP Approve Bank Payments, than an outbound file will be generated which will sent MBC
Connector to tenant from their it will be sent to bank.
If you Observe in the below screen shot APM batch status is Approved
The Memo records will get created based Liquidity Management Application Activation in
the Clearing area
In Below mentioned screenshot you can observe that APM Batch has been approved and a
file has been generated which will be sent to MBC Connector to the tenant from there it will
be sent to the bank.
In the below screen shots, it has been observed that the file has set out with the help of
MBC Connector to the tenant from there it will be sent to the bank.
Conclusion:
Below are takeaway points to be considered for this SAP S/4HANA Advanced Payment
Management for scenario payments ‘in name of’ with forwarding.