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Automatic Payment – Part I – House Bank

House Banks

Payment to vendor against various invoices after deduction of appropriate taxes (withholding taxes etc.) or any discounts / adjustments is one of the prime responsibilities of Accounts Payable function in an organisation.

When we discuss about the payment to vendor, we speak about a huge volume of checks / online transfers which are made either daily or periodically by the organisations. In bigger organisations this number is humongous and printing of every check / preparing bank letters for each and every payment manually becomes literally impossible task. In order to overcome this and many other difficulties, SAP has provided by SAP called Automatic Payment Program (APP) which automatically makes payment to various vendors at the same time.

In this series of posts we will try to find out what configurations / transactions are to be done in order to use APP. The series will look into all the aspects as given below:


  1. House Bank

  2. Vendor Master Data relevant to Payment

  3. Posting a Document with requisite details

  4. Payment Process

In this post we will start with configuration of House Bank

Implementation Consideration

T Code: FBZP

System will navigate us to the screen under Image 1.01


FBZP Screen

Image 1.01 – FBZP Screen


In the image 1.01 we can see the House Banks tab available for us to use. Click on the same and the system will navigate us to the screen appearing under Image 1.02


Image 1.02 - Enter Company Code

Image 1.02 – Enter Company Code


Enter your Company Code here and the system will navigate you to the next screen as appearing in the image 1.03 where we will actually do the House Bank creation


Image 1.06 – Account ID


On the screen appearing under image 1.03 we can see that no House Bank has been created yet. As we want to create a new House Bank click on the New Entries button and the system will navigate us to the screen appearing in Image 1.04


Image 1.04 - Create House Bank

Image 1.04 – Create House Bank


The screen (Image 1.04) has following fields for maintenance:


  1. House Bank

  2. Bank Country

  3. Bank Key

  4. Telephone 1

  5. DD No

  6. Contact Person

Lets enter the data in the fields one by one

House Bank

Enter the House Bank Code which you want to create for your House Bank.

This is very important step as this code will be used in most of the payment transactions so it would be advised to use coding logic for your banks. This will also help users to identify the bank from it’s code.

Bank Country

Enter the Country in which your bank exists

Bank Key

This is a Master Data which can be created separately as well using T Code FI01. We will create the same here. You may enter an appropriate code for the Bank Key as well. After entering the code click on create button and the system will navigate you to the screen as appearing in Image 1.05


Image 1.05 - Bank Key

Image 1.05 – Bank Key


Enter all the required data which is self explanatory. We may also maintain the bank address by clicking on the Further Address button or (F8) key.

Click on save and this will save Bank Key for you.

Bank Key is a master data and has to be created separately in different clients

Next Step is to create Bank Account under the House Bank.

This facility is provided by SAP to avoid creation of multiple House Banks for different accounts under same bank’s branch. We can create one House Bank for say ABC Bank and can create various Bank Key AB1, AB2, AB3 for different accounts maintained with the bank.

For creating bank account, double click on the Bank Accounts folder appearing on the left hand side and the system will navigate us to the screen as appearing under Image 1.06


Image 1.06 - Create Bank Account

Image 1.06 – Create Bank Account


On the screen under Image 1.06 click on New Entries button and the system will allow us to create a Bank Account under House Bank as appearing under Image 1.07.


Most of the information is stored for the combination of House Bank and Bank Account, it is due to this reason it is important to create the Bank Account correctly. Also the coding logic should be such that the user should easily identify the Bank Accounts relevant for the House Bank.

Image 1.07 - Create Bank Account

Image 1.07 – Create Bank Account


Enter following information:

Account ID

As explained above, please enter a code which can relate the Account ID to the House Bank

Description

This is complete description for the Account ID which may contain Account Number

Bank Account Number

Enter the Bank Account Number Here. At this level we also have an option to maintain IBAN Number. Refer image 1.08 for the screen

Control Key

This key is to identify the nature of account and values to be entered differ from country to country based on the banking requirements.

Alternative Account No.

The alternative bank account number is used for distinguishing house bank accounts with identical account numbers. This can occur if a house bank manages accounts in different currencies using the same account number.

The alternative bank account number must then only be defined if it differs from the bank account number. You must maintain it together with the bank key in the system.

If you have house bank accounts with identical account numbers and use the electronic account statement for these accounts, then you enter the internal key used by your house bank here (usually the account number with attached currency encryption). If you use the manual account statement, then you can freely assign the alternative account number. Using bank account number + currency code is, however, recommended.

G/L Account

Enter the Main Bank General Account created for the bank.

Just for information would like to elaborate a little of G/L account creation. In SAP we create three different accounts for any bank as below:

  1. Main Account

  2. Receipt Account

  3. Payment Account

We will discuss in detail about the above G/L accounts in our coming posts

Currency

Enter the currency in which this account is maintained.

Discount acct

Credit memos resulting from discounting bills of exchange at this house bank account are posted to this account.


Image 1.08 - IBAN

Image 1.08 – IBAN


The part of House Bank Data contains address maintained by us under the Bank Key.

The next part of Control data contains information like SWIFT code to be maintained for the House Bank.

This brings us to the end of this post which contains information on creation of House Bank.

Please note that the configuration except Bank Key gets transported. Hence, before transporting the same, please create the Bank Key using T Code FI01 in all the servers and you are ready to use the House Bank.


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