Incoming payment advice notes Electronically payment can be received from a partner (payment advice note/note about a debit memo/note about a bank collection) or from a bank (credit memo/debit memo).The payment advice note is stored in the note data bank and is then available to clear open items. Note can be used to generate an advice note for cash management and forecast or to clear the open item automatically. Below mentioned customization needs to be performed for the processing of incoming electronic payment advices and to clear the open item.
Step 1 – Partner Profile need to be set up (for each relevant customer/ vendor account, a partner profile needs to be set up) and configured. Following selections must be made for each profile:
• Partner number = customer/ vendor account number
• Partner type: LI for vendors and KU for customers
• Inbound parameters:
o Message type: REMADV [standard SAP IDoc for EDI payment advice]
o Process code: REMA (No further processing)/ REMC (Automatic further processing)
o Syntax check (activated) o Trigger immediately (activated)
T-code: WE20
Step 2 - Set up selection rules per customer/ vendor individually to define the criteria that shall be used to search the open items in customer/ vendor sub ledgers Path - SPRO => Financial Accounting => Accounts Receivables and Accounts Payable => Business Transactions => Incoming Payments => Incoming Payments Global Settings => Payment Advice Notes (Incoming)
Step 2.1 - Define payment advice types – In this step, following attributes for the payment advice types are define by the system:
1. Minimum retention period in the system - In this case, user can specify the number of days a payment advice note must be in the system before it may be deleted
2. Authorization group – In this step user can assign authorizations for entering, changing, displaying and deleting payment advice notes. Payment advice type -06 is being used for the electronic payment advices
Step 2.2 - Choose selection fields for payment advice notes - In this step, User can specify the fields via which the system is to make selections when displaying payment advice items.
Step 2.3 - Choose External Selection Fields for Payment Advice Notes - In this step, user can define external selection fields. These are used for identifying invoices, such as from delivery note numbers, for which no fields exists in Financial Accounting.
Step 2.4 - Define selection rules - In this step user can define the identification for the clearing.
Step 2.5 – Allocate Selection fields – In this step user can assign internal selection fields, that is, selection fields the system knows, to external selection fields (data the customer sends you, such as a delivery note number) under a certain selection rule. This assignment is necessary to ensure the correct identification of the open items.
Step 2.6 - Payment Advice Overview: Define Line Layout - In this step, User can determine which information is to be made available on the screen for the payment advice overview (such as payment advice item, document number, selection.
Step 2.7 - Payment Advice Overview: Choose Standard Line Layout - In this step, User can define standard default values for the line layout.
Step 3 - Define Posting Keys and Posting Rules for Manual Bank Statement - In this activity user can define posting keys and posting rules. Posting rule will be used in next step. Path - SPRO => Financial Accounting => Bank Accounting => Business Transactions => Payment Transaction => Manual Bank Statement => Define Posting Keys and Posting Rules for Manual Bank Statement
Step 4 – Define Further Processing of Payment Advice Notes – This step is used to define further processing of payment advice notes (to either process the payment advice note automatically or to park the payment advice). In this activity, user can determine which further automatic activities should take place for electronically transferred payment advice notes. Posting rule for the clearing document is determined from this customization.
Step 5 – Define Ports for processing incoming electronic payment advice. T-code: WE21
Step 6 - EDI profiles in vendor and customer master data need to be activated. In field status groups of all vendors and customers the field “Payment advice via EDI” needs to be set to required or Optional.
Step 7 – “Pmt adv. By EDI” check needs to be checked for Customer / Vendor master data
Conclusion – Incoming payment advise can be posted with the clearing of open item by maintaining the above customization.