Automatic Payment Program (APP):

APP is a tool that will help users to manage payables.

SAP gives users the options to automatically:

1. Select Open (Pending) Invoices to be paid or collected
2. Payment Documents to be posted
3. Print Payment Media or generate EDI

The APP has been developed for both national and international payment transaction with vendors and
customers and handles both outgoing and incoming payments.

Before running APP, we need to do configuration for APP.

Steps for Configuring APP are:

1. Setup payment method per country

2. Setup payment method per company code
3. Setup all company codes
4. Setup paying company code
5. Bank determination
6. Assign payment method to vendor account

Step by step process:

Step1:

Go to transaction ‘FBZP’ or under SPRO path

IMG -> Financial Accounting(New)->Account Receivables and Account Payable->Business Transactions-

>Outgoing Payments->Automatic Outgoing Payments-> Payment Method/Bank Selection for Payment
Program

Or we can get below screen by running ‘F110’ and under environment ‘Maintain Config’.
We get below screen ‘FBZP’ to maintain configuration for APP

Click on Company Code (OBVU)

Click on New Entries and Enter Company Code ‘ZJDC’, Paying Company Code,

Sending Company code is not entered if paying and sending company code are same.

Paying and receiving company code should have same company code currency.
On saving, new customizing
request is created .

Step 2: Select on Paying company codes

Click on New Entries

Enter Paying Company Code and Minimum incoming and Minimum Outgoing Payment.

Double click on Form to enter Payment Advice form and Sender details to enter sender details
Click on Save, Customization request created and paying Company code data is configured
Step 3:

Now Select Payment Methods in Country

Click on New Entries and give below details:

Click on Save

And customizing request is created.

Step 4:

Select Payment methods in Company Code

Click on new entries

Now enter below details
Click on save and we are done.

Step 5:

Click on House Bank, or Tcode FI12 if House bank is assigned to company code than go to ‘Bank
Determination’

Enter Company Code ZJDC

Click on New entries

Click on Save is
configured.
Go to FI12 and maintain House Bank, Account ID, Bank Account Number and Main G/L account for Bank
posting

Click on Save:
 and House Bank is configured for
Company code.

Table: T012

Step 6:

Configure Bank determination for Company Code

Create ranking order for Paying Co. Code ZJDC

On Saving

bank
determination is done for ZJDC and for bank SCB.

Now Click on Bank Accounts

On Saving, bank accounts have been configured.

Now Click on Available Amounts, press New Entries:

On Saving, and Available Amount for outgoing payment has been defined.

Value Dates:

On Saving
Expenses/Charges

Step 7:

Now need to assign payment method ‘C’ for Vendor.

For this go to Transaction code ‘FK02’, assign payment method ‘C’

Now Before APP run, we need to have a vendor open items, for that we need to create vendor invoice in
transaction F-43.
Enter Posting key 40 and GL account 310123 to pass value to gl account

In the next screen type * in Amount and + in Text field it will fetch previous value automatically.
Click on Simulate, in Document Menu Bar (Shift+F9):
Next Screen is as below
Now to Post document, click on or go to Document and Select Post

Error:

Error is rectified by assigning number object 19 to ZJDC company code, Tcode FBN1
Now we can check vendor open items in tcode ‘FBL1N’.
Step 8:

Now we can go to Tcode ‘F110’, as APP Run and any 5digit alpha-numeric characters as identification.

In the Parameters Tab, We have to define the following

1. What is to be paid – Docs. Entered Up to

2. When will the payments be made – Posting Date
3. Which company codes will be considered – Company Codes
4. What payment methods will be used – Payment Methods
5. Next payment date
6. Vendor Accounts for which payment has to run

Save the Parameters entered:

Now click on Proposal

We can check the proposal log button by clicking on button

We can Edit proposal by clicking if want to change payment for Vendor
Now click on payment run on status screen , check on popup

Status is Payment Run has been carried out

Number range 20 assigned in company code ZJDC, FBN1
For ZP document type NR: 20, to confirm go to tcode OBA7 or table T003
OBA7
Now again doing and it is successful
We can see the payment detail in FB03
No open line items in FBL1N:

Note: earning account 759999 is fetched from

Tcode: OBXU
Case 2:

Automatic payment program for vendor with Installment payment term:

For making Installment payment:

Step1:

First define a payment term in OBB8 with below details:

Step2: Now go to tcode: OBB9
When creating vendor Invoice F-43(FB60 for multiple line):

Use payment term ZTIN for installment payment

For Next line item

Now Simulate, Shift+F9
Now post,

FBL1N open item entry

To give check print program, assign SAP Script name in FBZP ‘Payment methods in Company code’ as
below:
For Payment advice give sap script name in ‘Paying company codes’ under FBZP

Now go to t code F110 and Set parameters

We must create check lot for paying company code in FCHI
Now proposal log in F110

After payment run

Go to FBZ5, enter printer for check printing and advice printing

Now, Print (Ctrl + P)
Now we can go to SP02 and check log printing

One for payment advice and one for check as we have entered printer name in both in t code FBZ5

Note: We can restrict number of rows in check printing (FBZP, Payment method in Company Code)
If payee lines are less than installment payment line.

As in below example we have Installment term ZTIN which have 3 payment term (OBB9)
But Payment advice control restricted to 2 rows in Payment Method Company code , FBZP

Note: Uncheck Individual Payment in Vendor Master data , if not than 3 separate payment document
will be created per payment term and 3 separate checks will be printed.
In FBL1N, one payment document is created

In FBZ5, for Doc 2000000016 only 1 check is printed and detail for line item is

in advice
Check is not having line item details for payment,
Payment advice has detail of payment as per payment term

If restricted to value is more than equal to installment term, in this case 5 > 3 installment terms
Check printing will have line item details and no need to give separate Payment advice.

Advice print, in this case not needed but still can be printed with line item details.

Case 3: Multiple Partial Payment from an invoice through APP(F110)

1. Create Special GL account for Down payment request(FS00):

2. Assign special GL account to Vendor reconciliation account(FBKP):

GL 399999 detail, recommended to have line item display checked
Click on

Use OBXT
Use FBZP to facilitate payments for special GL Indicator “P”
Post vendor invoice using FB60 or F-43
In FB03
General Ledger view of doc:

Execute F-59 to generate request for partial payment with reference of invoice 1010:
FB03 to check document number 100000000
Use the Tcode FB02 to block Main Invoice number 1010 so that payment can’t be made in full
else mistakenly can be done
And click on Save

Now Payment for 1010 invoice is blocked

Run F110 to make multiple partial payment

Document 100000000 is open to pay as partial payment for invoice 1010
There is payment block for Document number 1010 so payment proposal shows error

Now Payment run

Payment log

After payment run vendor line item FBL1N

Again execute F-59 for to generate request for 2nd partial payment
 Click on

Document 1000000001 was posted in company code ZJDC

FBL1n status

FB03 to check doc number 100000001

Run APP(F110) for 2nd partial payment
Payment run log Document 2000000019 is created for payment

FB03 for 20000000019

Now FBL1n

Now use FB02 to unlock payment block for document 1010

Now run F110 for final payment run
Now go to FBL1N as payment block was removed from Doc 1010 all payment is done to
vendor for invoice amount 800 USD

Now go to FBZ5 and generate check for all doc 20000000018,2000000019 and 2000000020
Payment doc 2000000020 will have detail about all payment made as per request and final
settlement of 300 USD