Vendor Outgoing Payments Sap
We may have to do outgoing payments in SAP for one of the following reason
Payment to a supplier / subcontractor against invoice
Payment to a supplier / subcontractor as an advance
Payment for any expenses / Deposits
Payment on behalf of other office / branches
Payments for Cash withdrawals
DIRECT DEBITS made BY BANKS through (NEFT)
DIRECT DEBITS made BY BANKS through standing instructions
Manually prepared cheque payment accounting.
Employee payments related to expenses, salaries, advances etc.
In SAP we have following two option to make outgoing payment in such cases
Manual Outgoing payments
Payments types that are covered under this section are :
1.Handwritten cheques ( advance and against invoice )
2.Demand Drafts / Pay Orders / Telegraphic Transfers
3.Computer printed cheques.
SAP T Code to be used
F-48 – Down Payments
F-53 – Post Outgoing payments
F-58 – Post & print
Automatic Outgoing payments
SAP T Code to be used
F110 – Automatic Payments (vendors and customers)
SAP T Code F110 – Automatic Payments has following steps,
Company code, Payment Method and Vendor Account range needs to be entered.
Further, we need to enter a posting date, Document entered up to date and next payment run date. The Posting date will determine the fiscal period for the payment entry in the books. The “document entered up to” date will select documents posted up to that date. The “next payment run date” will select documents which will fall due between “document entered up to” date and “next payment run date”.
Payment Medium tab specifies the different ways of Cheque Printing. This will help to print cheques as per the banks specifications. Different banks have different specifications. We can maintain variants and select specific variants for banks and cheque lots
Payment Media TAB will also specify the program for COS and NEFT file generation, which will generate the file as per bank requirement
Create Proposal Run :
During Proposal run, system evaluates the open items of vendors mentioned in the parameters and generates a proposal list for payment.
The proposal list generated from the system needs to be verified with physical invoices if required on exceptional basis.
Along with Proposal list, system will generates an exception list which will display the list of open items which are due for payment, but cannot be paid because of status of such invoices are “Blocked for Payment”.
After evaluating the proposal, if any change is required, one can make change in the payment proposal. This proposal list can be amended to exclude certain invoices by putting a manual block.
If the house bank and the payment method is not mentioned at the time of invoice then, it can still be maintained in the edit proposal session.
Execute Payment Run :
After checking & verification of edit proposal, Payment Run process needs to be executed. This will result in clearing open items under vendor account and accounting transactions will be generated as under.
Accounting entries generated :
Vendor Reconciliation Account Dr.
To Bank Cr.
Based on the payment media specified, Output file will be generated.