All about Automatic Payment Run Introduction The Payment Process includes the Following Steps 1. Invoices are Entered2. Pending Invoices are analyzed for due date3. Invoices due for payment are prepared for review4. Payments are approved or modified5. Invoices are paidA consistently high volume of invoices have to be processed. Accounts Payable Invoices have to be paid on time to receive possible discounts. The accounting department wishes to perform this processing of invoices automatically. The Automatic Payment Program is a tool that will help users manage payables. SAP gives users the options to automatically: 1. Select Open(Pending) Invoices to be paid or collected2. Payment Documents to be posted3. Print Payment Media or generate EDIThe Automatic Payment Program has been developed for both national and international payment transactions with vendors and customers , and handles both outgoing and incoming payments. Configuration We can configure the Payment Program by selecting the Payment Program (Tcode - F110 ) Application menu Environment -> Maintain Config

The Settings for Automatic Payment program are divided into following Categories : 1. All Company Codes2. Paying Company Codes3. Payment Methods / Country4. Payment Methods / Company Codes5. Bank Selection6. House Banks

All Company Codes : In this section we perform the following settings 1. Inter Company Payment Relationship2. The Company codes that process payments3. Cash Discounts4. Tolerance days for Payments5. The Customer and Vendor Transactions to be Processed

Paying Company codes : In this section we perform the following settings 1. Minimum Amounts for Incoming and Outgoing Payments2. Bill of Exchange Parameters3. Forms for Payment Advice and EDI

Payment Method / Country : In this section we perform the following settings 1. Methods of Payments - Cheques , bank transfers etc2. Settings for individual Payment Methods - 1. Master record requirements2. Document Types for Posting3. Permitted currencies4. Print Programs

Payment Method / Company Code: In this section we perform the following settings 1. Minimum and maximum payment amounts2. Whether payments abroad and foreign currencies are allowed3. Grouping Options4. Bank Optimization5. Forms for payment media

Bank Selection : 1. Ranking Order2. Amounts3. Accounts4. Charges5. Value Dates

Ranking Order

Bank Accounts

Available Amounts

Value Dates

Expenses / ChargesExecution : After Configuration of the Payment Process we will enter parameters to execute the program. Enter the Transaction code F110 in the SAP Command Field

Every Payment Program run is identified by two fields 1. Run date2. Identification

In the Parameters Tab , We have to define the following 1. What is to be paid - Docs. Entered Up to2. What payment methods will be used - Payment Methods3. When will the payments be made - Posting Date4. Which company codes will be considered - Company Codes5. How are they going to be paid - Payment Method Sequence decides the Priority of the Payment Method

Save the Parameters Entered

After the Parameters are Entered we execute the Program by pressing the proposal button in Application Toolbar

In the next dialog box , Check the "Start Immediately" and press Continue

A payment proposal is generated based on the parameters.

We can view the Proposal Log for possible errors by Pressing the Proposal Log Button

We can edit the proposal to block the some payments if we want, Press the Edit Proposal Button

In the next screen , the Proposal List of Vendors is generated who are to receive the Payments

After edit the Proposal , and then run the payment run to release the payments. We can schedule the payment run by coming back to main screen pressing the Payment Run button

In the next Dialog box , Check "Start Immediately" to start the payment run instantly and Press continue

We can check the status of the Payment run on the Status Tab