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This section is all about the different types of payments that you can make manually and automatically in SAP, as fan, as you can see from the agenda, we will look at payment blocks, supply line items and the steps prior to making a payment. For example, reviewing blocked invoices, as well as the payment program itself, we'll go through automatic manual payments and correcting them, but look at bank postings and how to reconcile the accounts payable side of the bank, as well as the usual reports and checks. Plus, I have a small section at the end on troubleshooting the payment program. One thing I can't stress enough is getting the master data. Correct. The majority of areas in a payment program always come down to master data. So I'll go through a few tips on the most common areas there. If there is a block on an invoice or account, you're not be able to pay them using the automatic payment program. It goes without saying that payment blocks are there for a reason should be investigated properly before moving, depending on the segregation of duties, it could be a separate department who removes the payment blocks. But if it is accounts payable, there should normally be a process in place to prove any block removal has been investigated and approved appropriately. There is several types of block, depending whether you want to prevent payments, postings in general, or even creating purchase orders in the first place. The first in the slides already been captured in section five. It is the automatic payment block on a specific invoice. Made by the system, if they prove value and quantity on the purchase order and the actually received quantity differs from the invoice by the lab tolerance. This is usually known as an invoice verification flock, and by default takes the letter R the second is the manual payment block. And to directly in the invoice that will stay on that specific invoice until it's manually removed. The third type is the one time block into doing the payment run, which only applies during that payment run. This might be due to last many query or to postpone certain payments to help cash flow. You can also put a block on the whole account. If there's an issue with the vendor, this can be a client, therefore company code level. Or at purchasing organization level, in addition, an invoice may not have an actual payment block, but it could be blocked for payment. If you've activated the sensitive fields functionality and the sensitive field that's been changed is not being confirmed for that supplier on a regular basis. And in any case prior to running the payment proposal, It makes sense to review and if necessary investigate existing payment blocks, you can of course from the proposal first and see the payment blocks in the proposal. But if a lot of investigation is required, you don't want to delay the payment run. It may take some time to investigate blocked invoices, especially those which are blocked because of price differences, or quantity differences. And there may be no alternative other than to exclude them from the current payment from left to right. If an invoice can not be paid because the sensitive field has been changed, the only way that you can pay it with the automatic payment program would be by getting the second person to approve the change. If there is a manual block on the invoice, usually you would put some texts to indicate why it was blocked so that, you know, when you'll be able to unblock it. The supplier account may be blocked because of issues with the supplier or perhaps they owe you money on the customer side. Again, there should be some documentation or process in place so that the block can be removed when appropriate. If the invoice is blocked because the suppliers overcharged you, you would normally wait for credit note before removing the block. If there's a price block, not due to supply, whatever. It would be normally up to the persons or department responsible for approving the original purchase order to approve any additional spend. And there should also be a process in place to update the price for next time you could amend the purchase order and reapprove it that way, but not all organizations want to go through the whole process again and simply remove the payment block directly. The most complicated block is the quantity difference. That's not due to supply error. Assuming the incorrect quantity has been booked. The plot must not be removed manually without posting being corrected properly. Otherwise the balance would be left on the gr I our account at any stock could be incorrect in the next slide. So look at the different ways to remove payment blocks. There are several apps to release blocked invoices. The one that I'll demonstrate shortly, you will see it's quite similar to be able to give you a transaction. The MRB are shown in this slide. It's effectively refreshes the three-way matching. And if something has changed so that the block no longer applies, it releases the block automatically. You can also add to release blocks manually in the managed payment blocks, as well as in the managed supply line items, apps in a scenario where a supplier sends invoices find interface, then they come through quicker than the goods. Receipts posted. Those invoices will be blocked for payment will remain blocked. Even after the goods, receipts posted. You can either unblock them individually. After checking the goods receipts have been received. Well, you can refresh the three-way matching by running the app to release more somatically or by scheduling the app to run overnight or on a regular basis. No running in automatic mode does not release manual blocks or anything where the block still applies. Similarly. The example in the slide shows a purchase order goods, receipt, invoice, and credit note posted in that order, the invoice was blocked because the price was too high. So the supplier send to credit note, which corrected the price, but did not automatically correct the block. Running the release blocked invoices at here would refresh the three-way matching and the invoice would automatically be released for payment. Slide shows those documents in the form of T accounts. You can see the GRI, our account shows the balances zero because the quantities were correct, even though the related documents are blocked for payment. To refresh the three-way matching. For example, just before a payment run, in order to ensure any credit notes or adjustments to goods, receipts, or purchase order pricing and approvals have picked up, I can use the schedule, your supplier invoice jobs that happen F1 eight, six, three. This contains different options to the shed, your accounts payable jobs app. As usual, it opens on an overview page containing any jumps in the selected job range. And I can click on the plus sign to create a new job. I go to the template, drop down, remove the current template from the search field and choose the task release. Blocked invoices. This has pretty much the same options as the classic daily transaction. Mr. BR, I fill in the company code. And in this case I'm selecting a specific supplier, but you'd probably choose the range of suppliers that you're about to pay the release. Automatically options should be taped. Which means his blood will automatically be removed from any items spent a three-way match is now matching. I appreciate you. And the screen returns to the overview is currently showing in process, but if I click on go, it should change to finish. And the results button appears. If I click on the results button, I can see all the items that have had the payment block removed. The first item ends in three eight zero six to compare the current job with the managed payments block cap, which we'll see in detail shortly around managed payments block hap. Before I ran the release blocked invoices hap, but left the screen open. If I now quickly go back to the open screen and check the first item from the release blocked payments app. In other words, the one ending in three eight, zero six. You can see that it had a payment block before I started. If I now refresh this screen, you can see that the payment block has now disappeared without me having to manually check and release it. If you want to block her and block a supplier or a number of invoices manually by selecting the checkbox, the new app is easier and you can see the different types of blogs, automatic or manual quite easily. One option is to run the release, blocked invoices in automatic mode to clear the invoices that can clear on their own. And check what the blocks are. Then you can run the manage payment blocks to release the remaining relevant blocks and perform a final check on the account. Again, I can't emphasize enough that just releasing a quantity block in this way, because a lot of trouble, they won't correct. The still can we leave a balance on the GRI or accounts fee investigated at a later date? So the new app is more suitable for releasing blocks with price differences. Which you're actually quite difficult to identify in bulk. The new app also allows you to block both the Spire and one or more invoices quite easily. If you block the supplier here, a popup appears for you to enter the block, type the notes, to explain why the supplier is blocked. No, the here I've blocked that supplier only for company code code in the managed payment blocks app. There are lessons possibilities to sort filter group and to find out why an item is blocked. You would have to drill down into the various documents to check one by one, usually by clicking on the relevant items blue, to see why an invoice is blocked. Drill down on the logistics invoice document. As opposed to the financial journal entry posting by clicking first, the blue invoice number, and then either click on the blue number again in the popup or select display supplier invoice and the supplier invoice. You can then either scroll down to the purchase order references and select the button view in the nine items. See the purchase order history of that line item. Which then shows the details of how much it was ordered, received, deemed voiced by a mountain quantity or, and especially if there are a number of line items, you can click on the blue block for payment under the payment status at the top of the invoice, which should take you to more details in this slide, you can see the status of each item. And which has a price book and which has a quantity clock. You can't pay part of an invoice with the automatic payment program. If only parts of it, it's not. So the line without price or quantity block is technically blocked anyway with an FYI block, but that block would disappear once any ethical Hawks resolved. You can also click on the context, supplier or contact purchaser in order to get their contact details directly. Okay, come the blue purchase order number to go into the purchase order. We'll jump to other apps in the same app. You can see the invoice timeline and when payment is due and lower on the same page at the statistics for the whole supplier. So you can see to go it's. What else is blocked? I'm now going to do another demo. I go into the managed payment blocks app F C zero five nine three, and select the supplier one, tremolo three double one in this app, the options for filtering, sorting, and grouping, and not as obvious as in many other apps, but the bottom is a button that I can use for sorting. And did not that I can use for grouping and at the top for options to filter by, I can feel to buy, for example, status or payment block, or I can filter by company code. I can block the whole supplier by clicking on the block supplier button at the bottom. And the interesting thing here is that I can intrude note about why I'm blocking supplier as well as choose payment block Reese. I can block individually invoices by selecting them and clicking on the block item button. And again, I can enter the type of payment block as well as the reason I have another sort button at the top of the items. And I can use the settings button to add or remove collards. Although in this case, they've all been already selected. Most of the items shown in blue will allow me to drill down into them further information by selecting an app. But in this case, I'm going to select the material document number itself to take me to the supplier invoice details. If I scroll down, I can look at the purchase order history of each line item. This particular item was manually blocked, but if I choose another one with an automatic block, do the same thing going into the blue number, but this time click on the blue block for payment button at the top of the invoice. It gives me more detail about the specific payment block. You can see here that there is several different blocks, price and quantity, but even the first item, which is correct then does not have its M block has a temporary FII block because it cannot be included in the payment run because all the other items in the invoice have blocked. If I scroll down further, there is some KPI charts. If anything is unclear, I can go back one step and check the purchase order history. Also from this app, I can jump directly to the supply effect sheet. I'm drilling down on the blue supplier numbers. It shows both master data and summary transactions. To see the payment block that was activated in the managed payment block app in the supplier master data, or to block or unblock their in state. You have to go into the company code, automatic payment transaction section. Now that this payment block has a code in this case, be the other master data blocks, or either block the account or not. There's not a choice of code. No blocking the County managed payment blocks shows a message next to each invoice is account blocked in your automatic payment program, but still allows you to post new invoices, new invoices posted after the account has been blocked, or be able to magically the block for payments. To put a payment block for supply everywhere you block. If you count partway down the basic data section in the supply master data app by selecting relevant checkbox, the block shows is a yes or no one saved if he wants to completely prevent purchases in the first place, perhaps because the supplier is unreliable. You can use the supplier master app and put a central purchasing in the same app. You can put either a central posting block or a company code posting block, perhaps because you want all postings to be made to different supplier account. If this one is incorrect. No. If you only put a block on the account at company code level, you can still enter a purchase order and post a goods receipt. However, you will not be able to post the invoice payment or process any clearing the view of where you can block an account is the maintain business partner, master data wrap, where you have seminar options. For example, central posting block central purchasing block and company code posting block. You can block a supplier for one or company codes and one or all purchasing organization. This slide is using the maintain business partner hat based on the gooey transaction. The P you can also see the payment block in the vendor payment transactions for the company code in the St. Map, maintain business partner. And here are the purchasing options. In section two, I mentioned that you can switch on your confirmation for sensitive fields. This functionality is activated at client level, and you can choose which fields you deemed to be sensitive. Any fields designated to sensitive. Usually those related to the bank account must be confirmed by a second person in order for any runs for that supplier to be picked up by the automatic payment run. We will cover the managed supply line item now, because it's useful for looking at specific supplier details. If there's a query with payments and it also lets you block or unblock items and do some editing, there's a separate section on reporting, which will cover several aging, payables and other supply reports. This slide shows an example of grouping by supplier. You can sort by company code and whether accounts or items are blocked or not. In contrast to the managed payment block report, it shows a lot more columns. Plus you have more selection criteria such as paid, open parked, et cetera. And you can also edit a line item or choose a number of line items to mass edit, which might be useful if you need to change payment details, such as terms, discounts, payment methods, house, bank, and so on. We will see how to do this shortly in the demo, there is a similar app called manage customer line items. When money is owed to the customer, it can be deducted from any outstanding invoices. Do you and the customer account, for example, for refunds or sales, credit memos, or a payment can be sent to them customer account either because there are no invoices to deduct from, but also because some customers may prefer to receive physical payment for certain types of payments, such as for rebates or promotional items, rather than letting them off against sales. Some organizations prefer to keep sales related payments under the customer account, but it's also possible to set up a customer as a supplier and either pay the supplier account as normal or net off the two. In any case, you can link the outstanding payable and receivable items to ensure that you do not make a payment for the payables. When the same business partner has not been paying the receivables side. We'll see how to include a customer account in the automatic payment and manual payment program. Shortly, I'm going to do a quick demo of the supplier line items, app SDRs seven one two. I can choose one or all suppliers or I can search by name or search term using the dropdown. I can choose suppliers from a specific country postal code or use the conditions tap and drop down. I can add more filters to restrict either by master data fields or transactions. Already in the filter bar. I have the status currently showing just open items in the item type and just normal items. Although I could include, for example, parked or customer teams as well is I have company code. Oh, if Sarah at one set in my default, so I didn't need to type that in. And also today's date appears is default. I press go and you can see a number of columns. I can quickly group filter or sort by clicking the top of the column and I can drag and drop columns to different places. I can select anything in blue and go to that item directly by clicking on the number at the top or choose one of the apps to jump to. I can also add more apps to quickly jump to by clicking on the more links button. Note that if I select a journal number, it shows me only the supply line item. But at the bottom, I can click on back to journal entry to get the overview of all the items in the journal. Taro takes me back to the supply line items. Okay. Affecting one or more items and clicking on edit line items gives a popup. Well, you can change fields for the selected items. Be very careful that you have the correct selection because as soon as you click, okay, it changes all those items. There's no. Oh, you sure pop up. You can also select an item and just click on block and unblock, but be careful as you will not see here, whether an item is already blocked automatically, you can either add the column item payment block. Or go into one item at a time and check the blocking and decline item. No. Did this supply payment block column is only for when the whole supplier account is blocked. Next. I click on the settings button. If I want to add the item payment block, I simply select the check box and if I want to move it to the second column, I can either move it column by column. Well, he is the double arrow to go to the top by column one. And then the single arrow to go down one at a time back in the settings, the sort of tablet asked me to sort by a number of columns at the same time. By clicking on the plus sign to add saw criteria. The filter tab allows me to set up conditions to include or exclude. I could take a look at the invoice is likely to be picked up by the payment run prior to running the proposal, by going to the filter tab and setting the condition frightens with the net due date on or before the end of the month. In the group tab I can group by supplier or I could set up the whole key. For example, company code, supplier document type in SIBO. Which looks like this. And of course I can drag the width of the columns is required. If I want more room, I can hide the filter bar. I can also say the layout, like clicking on the layout and save has. I can choose to have it as my default or make it public. I can do the same thing with the filter criteria. In other words, save the specific selection. Most outgoing payments, excluding payroll in a company will be made to suppliers and due to the sheer quantity, probably be made using the automatic payment program based on the entered parameters. The system proposes the list of invoices, which are due for payment for you to review, and it is required. Once approved payment, fraud, or payment media reproduced, and the payment run is posted and the invoices are cleared. Automate. If travel expenses are posted to an employee vendor account, they can be treated in a similar way to an invoice and payments made to employees using automatic payment program. In some cases, a payment may be booked directly to the general ledger without the involvement of accounts payable. But apart from the taxes themselves, you would normally post everything in accounts payable for the VAT register and better control using the create single payment functionality. You can create a down payment or pay a single invoice and have manual payments, cover everything else. For example, payments that have been made outside the system, we will go into lot more detail for each payment type, starting with the automatic payment program. In order to make a payment automatically in S for HANA, the automatic payment program requires the document to exist in the system with the amount payable, when the payment is due, as well as information on who to pay and how some of this information will be entered manually. When the invoice is posted exam, put him out, pay a bill. And some information will be transferred to the invoice at the time of posting from the vendor master data. For example, the payment terms and method, the rest of the information will be called from the vendor master data at the time of payment to create a payment run burst into the parameters of what you want to pay. For example, a range of suppliers and company codecs that have payment method Y and a Jew before date said. You can also select one document or range of documents or use other criteria. The system then automatically selects all invoices that conform to that criteria and creates a payment proposal for review. You can delete and recreate or take the proposal as often as you want prior to creating the payment run, but just the payment updates, the counts once the payment run is created. It cannot be physically deleted. It can be reversed, but it may not be easy to do so, especially if pay media has already been created. Technically you could run the payment, run directly without creating the proposal, but this is not really recommended. If you made a mistake in the parameters or master data, you might pay or admit suppliers or invoices that you didn't intend to. If you were using the automatic payment program, you need to payment method. You should be setting the supply master record, but you can override this plan payment method by entering a different method in the document, for example, to use a quicker, but perhaps more expensive method in an urgent case. Payment method very depending on the country and currency SIPA allows Euro payments to be made across borders mainly within Europe and fax is only for GBP in the UK. Although some countries still use checks. Most of the remaining payments involve transferring payments between different banks at varying speeds. You can specify mandatory fields for each payment method in the configuration. For example, the iPad number or the Swift code. This slide shows some U S payment methods. Incoming payment methods can also be used with the automatic payment program. For example, to connect direct debits from customers. You can also enter payment methods for information only, even if you don't use the automatic payment program for that method or only use it for clearing. For example, if you regularly pay the supplier by direct debit, you can post an invoice and just use the automatic payment program to clear the invoice or alternatively, you can clear the invoice manually. It needs to be a strict segregation of duties to avoid fraud, particularly around payments. In other words, one person should not be responsible for master data, posting invoices and posting payments. An organization may have some sort of master data governance set up to ensure the integrity of the supplier master data, as well as the separate approval system to check the validity of the payments. There are a number of different ways. This can be achieved both in SAP, S four HANA and outside, depending on the software you use to send the payment file to the bank. So it won't be able to go into all the different possibilities here. You could also split the authorizations inside the payment program so that different people can create the proposal, revise the proposal, post the payment run, manage the payment media. One thing to stress is that there should be a proper procedure and approval process with the appropriate segregation of duties in place for all payments, not just automatically generated ones. After there's no point in having strict control over your automatic payments. If it's all too easily bypassed like manual payments without approval, there are different approaches to making payments. I've known some companies dedicate specific days to payments. Fix MPO in one company, if you're putting you the payment was on Wednesday, then if they wanted something paid, it had to be ready before Wednesday. Another company Patrik sample domestic payments on Monday foreign payments on Tuesday, direct debit. So Wednesday employee travel expenses on Thursday and intercompany on Friday and not the company set payment terms. It's 15 days after the end of the month to have one payment run in the middle of the month for everything. It totally depends on your organization. The number of vendors, the typical payment terms with your vendors, different payment methods, cashflow availability of approvers and so on that are a number of dates to be careful of. The first is the run date, which is part of the identifier of the payment run. And is he usually the day you start the run and cannot lay to be changed. Although you can create a new one, the document sent it up to date, usually defaults to this as well. If you create the proposal payment run and payment media all on the same day and you can use the current day everywhere. If you create payment, run a Monday and then review it on Tuesday, decide to Nerge and invoices missing. That needs to be included. When you can send a rerun, the payment proposal to pick up the missing invoice. You need to change the document centered up to date Tuesday. Yeah. It's the date that the invoice was posted. Otherwise it will ignore it even if the due date indicates that it should be included. The next payment date is used instead of Dubai's Tate. But with a bit of flexibility, let's say that you pay offenders every Wednesday. If you tell the system that the next payment date is next Wednesday, it will include any invoices that are not yet you for payment day, but that are due for payment before next Wednesday, so that you stay within the two day and can catch any relevant cash discounts. However, if you don't genuinely rush to pay suppliers and would rather pay a few days late rather than a few days. Yeah. You can play around with the date, but it cannot be the same. Or before the posting date, if you're the company has configured a tolerance for the cash discount, for example of two days, it means that the system will still deduct the cash discount. Even if you pay up to two days after the agreed terms for the cash discount. Cash discount is discount that you can only deduct. If you pay early, you can also set a minimum amount in the configuration, for example, to ignore payment. If it's under $5 to think in advance about the data, which you want the bank to execute the payment, depending on the size of the payment run. And the average number of queries you may want to run the proposal a day or two in advance of when you want to send it to the bank may also be able to send it to the bank one day. But with the required execution date, the following day in the slide, you can see it in the XML file sent to the bank. The requested execution date for this payment method is the posting date. No, this may vary depending on how the payment method has been configured, so best to check or test it. If you're not sure, can you create the payment proposal Monday, but only send it to the bank on Wednesday? It may well be rejected. If you still have a required execution date is Monday. You can of course change the date, but changing the parameters usually means canceling the proposal and rerunning it. And you'll have to block again, any items blocked in the first proposal, plus the new proposal may pick up additional items that have, I have to since been posted or since been unblocked since the first proposal. The first few payment runs after go live, often raised a lot of questions until users become familiar with the reasons why invoices are blocked.