Explain ‘Automatic Payment Program’ Configuration?

Answer

Before you are ready to run the ‘Automatic Payment Program,’ the following should have been defined/configured in the system:

House Bank and the corresponding bank accounts.

Payment Methods to be used for the Company Code. SAP comes with predefined

payment methods, both for AR and AP. The following payment methods are available for you to select from depending on the requirements:

a. Accounts Payable

    Check (S)/Transfer/Postal Giro transfer/Bill of exchange

b. Accounts Receivable

    Bank collection/Bank direct debit/Refund by check/Refund by bank transfer/BE payment request

Bank Chain defined, if necessary. Bank chains are used to make payment via more than one bank, for example, via the correspondence banks of the house bank, the recipient bank, or the intermediary banks. You can define up to three banks.

Payment Forms defined. SAP delivers standard forms, which can be modified, or new

forms can be created for use. You may do most of the configurations by using the Transaction Code FBZP and branching to individual sections thereon. Or you may use the following Transaction Codes for individually doing it:

1. (Sending) Company Code specifications

a. Sending the Company Code—if Company Code ‘A’ is making payments on

behalf of ‘B,’ then ‘B’ is the Sending Company Code. Otherwise, the sending

Company Code is considered the paying Company Code (both are one and the same).

b. Tolerance days

c. Paying Company Code specifications

Minimum amounts for incoming and outgoing payments.

Forms for payment advice and EDI.

Bill of Exchange parameters

2. Payment Methods/Country and Bank determination

a. Payment Methods/Country

Payment Method for outgoing/incoming?

Payment Method classification

Master data requirements

Posting details—document types

Payment medium details—Print programs

Permitted currencies (leave blank to allow all currencies)

b. Bank Determination

Ranking Order

Per Payment Method:

Which bank should be used first, second, etc.

Currency

Bill of Exchange

Bank accounts

Available amounts

Per House Bank and Payment Method combination:

Offset a/c for subledger posting

Available funds in each bank

Clearing accounts for Bill of Exchange

Value date

Charge

3. Payment methods per Company Code

a. For each Payment Method and Company Code you need to define:

Minimum/maximum payment amounts

Whether payment abroad or in foreign currency is allowed

Payment Media

Bank optimization

4. House  Bank

Please click on the question to find the answer

1. Explain the ‘Account Payables’ Sub module?

2. What Documents Result from ‘Procurement Processes’?

3. Describe a Purchase Cycle?

4.What is a ‘Purchase Requisition’ (PR)?
 5.What is a ‘Request for Quotation’ (RFQ)?

6.What is an ‘Outline Agreement’?

7.What is a ‘Contract’?

8.What is a ‘Release Order’?

9.What isa ‘Scheduling Agreement’?

10.  What is a ‘Quotation?

11.  What is a ‘Purchase Order’ (PO)?

12.What is a ‘PO History’?

13.  Will the FI Document be Created with the Purchase Order (PO)?

14.  Explain FI-MM Integration ?

15.  What Happens, in SAP, when You Post a ‘Goods Receipt’?

16.  Explain ‘Invoice Verification’ (IV) in SAP?

17.  How do You Deal with ‘Tax’ when You Post an Invoice?

18.What ‘Variances’ do You come Across in Invoice Verification?

19.  Outline ‘Vendor Payments’ in the SAP System?

20.  Explain ‘Automatic Payment Program?

22.  How do You Execute an ‘Automatic Payment Program’?

23.Can You Pay a Vendor in a Currency Other than the Invoice Currency?

24.  What is a ‘Payment Block’?

25.  How do You Release ‘Blocked Invoices for Payments’?

26.  What is the ‘Account Assignment Category’?

27.  What is a ‘Credit Memo’?

28.  What are ‘Special GL Transactions’?

29.Differentiate ‘Free Offsetting Entry’ from a ‘Statistical Posting?

30.  What is a ‘Noted Item’?

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