Note to Payee Functionality

Note to Payee is a functionality available in SAP DME to meet legal / bank requirements of additional details along with payment file.

Also, many times, note to payee information is required by bank/supplier, along with DME XML/FLAT file.

Basically, note to payee is information of paid line items for each vendor/business partner. Note to payee can be any information about payment as per the requirement of bank.

Below are few e.g.

  • Legally required information of each payment
  • Official document number, which is being paid
  • Common reference number between business partner

So note to payee is just additional information you have to print in output file. Just like we print other payment related details. Hence it is possible to do same kind of mapping in DMEE tcode itself and print these details. But SAP has provided separate function of Note to Payee to have greater flexibility.

Note: As a prerequisite to have fair understanding of this blog post, one should be familiar with DME functionality and DME tree structure. If you are new with DME then you can refer this eBook to learn DME.

Configuration steps for Note to Payee functionality in SAP:

Below transaction codes need to configure Note to payee in SAP:

  • Payment medium format (OBPM1)
  • OBPM2
  • FBZP
  • DMEE
  1. Payment medium format (OBPM1)

Select the concern payment format and go to tab ‘Text fields for reference information’

Here enter the information like type, field length, no of fields.

Field length will depend on requirement, where as No. of fields will depend on payment file structure. Let’s say if you have configured DME tree like separate line for each invoice then No. of fields 1 is sufficient.

But if you have configured DME tree for separate line for each vendor (multiple invoices) then No of fields should maximum like 99.

  1. Note to Payee (OBPM2)

From the same screen you can either click on Note to Payee button or go to transaction OBPM2

Create note to payee nodeCreate Note to Payee node

Then select option – Note to payee layout using function module and enter the function module name

Before this step as prerequisite this function module should be available/created. When you will ask ABAPer to develop such function module below are the things you should ask for apart from field and data logic:

  1. This function module should be called at the time of payment run
  2. Whenever Create payment medium checkbox is ticked
  3. Data of Note to Payee should be stored in table DFPAYHT

DFPAYHT table should store values as per the structure of Note to payee

Table DFPAYHT

Note: Reference FM for creating ZFM is – FM FI_PAYMEDIUM_SAMPLE_DETAILS

Well, if you want to go for customizing option, then it includes below steps:

Go to ‘Default Note to Payee’ section in OBPM2 after ticking ‘Note to payee using customizing’ option

Here in this tab we have option to play with SAPScript data. As you can see in notification type we can select the behaviour of output for Note to payee text field values. Values can be taken from three structures FPAYP, FPAYHP & FPAYHX. If you are confused about variables or other signs then just click F4 in Note to Payee text field and just select required fields.

You can also check the preview by selecting preview button for your payment medium format

These fields will be updated in table DFPAYHT.

Also Read: Functioning of CO-PA in make to order scenario

  • Maintain payment program FBZP

Select payment method in country

Select Country and payment method and go to tab Note to payee origin

Here in note to payee field enter the note to payee name which we created in OBPM2 transaction. This will help trigger FM and correct note to payee.

After this go to DMEE tree

Here we have to modify DMEE Tree and link note to payee in DME.

Create a node for Note to Payee where note to payee details should appear. This node is based on exit function. We need new function module for this node. Remember the function module we created and assigned in OBPM2 settings, that FM updates table DFPAYHT right. Here we need FM that can pull the information updated in DFPAYHT.

Checkout eBook: Manual and electronic bank reconciliation in SAP

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If you remember previous screenshot of DFPAYHT table, there all the fields of note to payee is stored in separate line. So this FM should concatenate these fields into one single line.

Note: Reference FM to create ZFM is – DMEE_EXIT_TEMPLATE_ABA

Alternate to this option, if you don’t want to use exit function module, is to call structure DMEE_PAYD – TEXT

You can also visit this similar blogpost on Note to Payee functionality.

Below are some important points to note in Note to payee functionality:

  • Most of the times to match the requirement, standard customizing is not enough so in that case custom FM is much better and useful way to configure Note to Payee
  • Note to Payee is like free form text, it changes from bank to bank, organization to organization. In some cases, it is mandatory to print note to payee info in DME file. In some cases, it is not even required

This is simpler than how it looks; you just need to try this once. If you want to know more about DME then consider reading this eBook.

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SAP College December 18, 2021 1 Comment

What is MT101 file format and it’s application in SAP

MT101 message is a request to transfer fund from payer’s account to receiver’s. To make the transactions like this, MT101 message format is used to do the communication.

Below is the sample MT101 file format:

MT101 File format
MT101

Why and where MT101 message type is used?

Well it can be understood if you look at the body of MT101 format. The body of SWIFT MT101 Message contains header, sender/ordering party details and customer/receiving party details. It means there will be blocks of each transaction in MT101 file and each transaction block will contain sender and receiver details.

Now let’s look at the other file formats, which body contains header, transaction details and footer. So these formats are specifically for sending payment from one bank to other receiver’s banks. But MT101 file is made for paying through multiple banks to many banks.

In easy words as mentioned above each transaction will have one sending bank and one receiving bank in MT101 format. So in single file there might be multiple sending banks and multiple receiving banks.

Also Read: Note to Payee Functionality

Hopefully now we understand use of MT101 message but now question arises is how a company/organization use this and how it can be helpful than other file formats?

To understand the answer of this question, We would like give you a scenario. Imagine a multinational company based in USA, who is spread across America having hundreds of company code and thousand bank accounts.

Now when in SAP you do the payment run from each bank account there should be a payment file configured for each bank. Imagine the efforts of having this much DME structures and payment files. It’s a huge activity of maintaining these file formats and matching the all requirements. This is where MT101 helps. With this you can use MT101 format for every bank. All the payment files from all banks will be created in MT101 format.And we know the structure of MT101 (header, sender details, receiver details). Now the trick here is, we don’t send MT101 directly to bank unlike in other file formats. Because we don’t know whether bank will understand MT101 or not.

Read eBook: Controlling – Profitability analysis (CO-PA): Comprehensive coverage of the SAP CO-PA module

So we send all the files to a middle man i.e. SWIFT which act as a middle-ware here and then SWIFT reads the MT101 and take call to which bank this file should go for payment. This is the reason in each transaction MT101 haves details of sending bank/company. This process is helpful to the organisations who use IHC (in house cash management). Who have worked on the IHC might be easily relate to this or find how useful is this.

You can also read this blogpost to know more about MT101 file format.

Thanks for reading, if you want to learn more about bank payment files and DME in SAP then you can checkout this eBook.

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SAP College August 24, 2021 0 Comments

What is SAP Co-Pilot?

Imagine you are sitting on your couch, scrolling through Instagram, it’s 21:00 o’clock, you are done with dinner and planning to go to bed… almost all of the items in your to do list is checked…

And suddenly you realize that you forgot to punch a Purchase order against the purchase requisition raised by IT department. The requirement is for procurement of headsets and it is urgent, the PO should have punched today itself. So you decide to create purchase order…

Now imagine the pain of getting up and reaching to your home office desk/laptop, logging in, connecting through all of VPN and then follow all of the necessary steps to create purchase order without getting distracted by the emails or the messages you may have received.

Now, instead of doing all of this, what if someone do it for you. Like you ask google assistance/Siri/Alexa to set an alarm for you, like you ask them to call xyz person. What if you get a similar bot and you ask that bot to ‘show me all of the purchase requisition created for headset requirement’ and the bot replies you with the appropriate requisition number and a soft copy of that requisition on your smartphone. You check the details of the requisition and then you ask bot to create a purchase order for this xyz requisition… and within few seconds the bot replies you with the created purchase order and soft copy of it….

Wouldn’t it be amazing? If you think it is, then it’s here the bot name is SAP Co-pilot and it can do many more things than what we imagined in above example. Explore more about co-pilot in below video..

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SAP College June 11, 2021 0 Comments

What is Rise with SAP?

Basically it’s an offer, SAP has launched after pandemic. SAP has offered a package of components along with S4HANA.

Rise with SAP is a movement where SAP wants to help customers to move on to the latest technologies with the most efficient and faster way. SAP has divided customers into three categories:

  1. ECC customers
  2. S4HANA customers
  3. New customers

Now there are just so many things out there for new customers as well as ECC customers to choose from and also there are S4HANA customers but all are on different level, some have opted in 2015 some have in 2018 and all of the customers are wondering what should be the next step… this is where Rise with SAP comes into the picture

SAP wants to build an Intelligent enterprise to run and streamline complex innovative scenarios. To help businesses streamline their processes differently with the help of Intelligent suite (i.e. S4HANA) and Industry cloud. It helps businesses to not only became profitable but to be sustainable in long run.

Below slide provides an idea about how SAP will help implementing the Intelligent enterprise:

  1. Help businesses to Redesign business process
  2. Provide necessary Tools & services for smooth migration
  3. Provide Infrastructure, Platforms, Required Application and Network

What SAP is offering in Rise with SAP offer:

Packages included in this offer and how customers can buy this:

S4HANA private cloud edition:

for more information about Rise with SAP watch this webinar.

If you have any suggestions or questions do let us know in the comment section or you can also write us directly. 

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Till then you can have look at our ebooks.

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SAP College February 9, 2021 0 Comments

Functioning of CO-PA in make to order scenario

SAP COPA (Controlling Profitability Analysis) has separate process to handle MTO (Make to Order) and MTS (Make to Stock) scenario in SAP. In this blogpost we will discuss how SAP separates these two process and how it impacts the processing of COPA Documents.

Not every time billing document post to the costing based CO-PA. One of the major reason behind this behavior is make to order scenario.

In MTO process the gap between sales order and billing is huge. As the name suggests, in make to order process, personnel need to wait for billing until the product is not manufactured. When we create the sales order it is considered that the revenue is going to generate in the near future but it will not appear in CO-PA until and unless billing is not generated. To fulfill these discrepancies SAP CO-PA provides us the option to post the values to CO-PA before the billing through sales order.

Introduction

Sales order can be fulfilled by made to order process or made to stock process. In make to order scenario billing document does not posts to the CO-PA.

No CO-PA document generated

In this case we need to transfer the values to CO-PA from sales order by transaction code VA88.

Now how to differentiate MTO and MTS scenarios technically?

It is easy to understand MTS scenario because process is plain in make to stock scenario. But when we create MTO, in this case we have to produce material against specified sales order. Again this is in theoretical terms.

In technical terms to satisfy the MTO case, billing document will have an account assignment tab to a sales order in addition to the PA segment. (Refer attached screenshot of billing document)

Account assignment to sales order

In addition to this, on sales order level field VBAP-KZVBR = E is mandatory.

Also Read: Tips and tricks on Bank Reconciliation in SAP

How to meet above criteria’s?

Materials determine whether sales order is going to be considered as an MTO or MTS. From the material master the requirement type is determined and requirement class from requirement type. In requirement class we do all the necessary configuration, through which system understands or allows CO-PA documents to be posted from VA88 transaction instead of billing.

Requirement Class

Here we have consumption field E which means accounting via sales order.

Because of the above settings we can see on sales order level we get account assignment tab with below details:

Account assignment tab

We can see PA segment has collected characteristics to post into CO-PA documents.

We need to set the settlement rule through which we can settle the values to CO-PA

Change settlement parameter

Settlement parameter can be changes on sales order level as well. (Refer above snapshot)

Settlement Rule: Parameter

Here you can change the settlement profile and PA structure along with the Allocation structure. These changes will be specific to the sales order level.

Click on the settlement hierarchy to get the object number

Settlement hierarchy

Here the object number is 39234280, this number keeps changing when we make changes in sales order or in flow of the sales order. This object number makes sure the order is settled or need settlement. We can check how many times one sales order is settled with this in table AUAK.

Settlement Rule: Hierarchy

Read eBook: SAP DME – A Simplified Guide

How to settle sales order values to SAP COPA?

Until and unless you did not settle the sales order to CO-PA the values will not appear in profitability reporting. Now this seems to be an additional activity, but we have a solution for this too, just stay with us.

To settle the sales order in CO-PA –  go to transaction code VA88

Transaction code VA88 in SAP
VA88: Actual settlement of sales order

Enter the sales order details and execute first in test mode then in production mode and this way we can settle the sales orders to the COPA.

What if wrong values settled to COPA?

The way we settle the order to PA, the same way we can reverse the settlement from VA88.

VA88: Reversal of Actual sales order settlement

Fill the sales order details and click on Reverse from settlement menu.

And the sales order will be reversed.

What if I have to settle multiple sales order with more selection validations?

For the background processing or to settle sales order through background job there is one program which can be used.

RKO7VA88 is used for settling multiple order or scheduling background job for sales order settlement.

ABAP: Program Execution

Execute the program

Program RKO7VA88 in SAP
RK07VA88

Here you can see you have a multiple options to select sales order by filtering with various criteria’s.

This program is useful in scheduling background jobs, in so many projects almost most of the clients go for automation in sales order settlement. To achieve this requirement you should have the knowledge of how to schedule a background job. You just need to simply create a selection variant with dynamic date in this program and use this variant in a background job.

What if I have to make the minor changes in CO-PA document?

You can also post the manual line items in CO-PA with the transaction codes:

KE21/KE21N – Create document

KE23/KE23N – Display document

KE21 – Create Document

KE21 Transaction code in SAP
KE21: Create line Item

Enter the reference document number and create line item, you can also post negative values in the CO-PA.

What if I have to change the data in CO-PA?

You have two options to change the existing data in CO-PA

  • Use transaction KE4S – this transaction reverses a COPA doc and repost it with reference to billing document.
  • Use KEND transaction – it simply changes the values w/o any repost. E.g. If customer 1001 is tagged to customer group XYZ from 1st Nov Onwards and you want all old data to get reassigned to XYZ instead of ABC, then you use KEND

You can also watch below video post of this blogpost:

Thanks for reading the blog, if you want to learn CO-PA more deeply and want know the tips and tricks, which will be helpful to solve or analyse CO-PA issues more efficiently, then you can read this amazing book Controlling – Profitability analysis (CO-PA): Comprehensive coverage of the SAP CO-PA module

If you enjoy the blogpost then you can stay connected with us on below platforms:

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SAP College December 26, 2020 0 Comments