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Multiple vendor bank accounts and automatic payment programs

September 28, 2011

A vendor may have multiple bank accounts and may want you to make payments to its accounts on the
basis of certain rules. The rule-based selection of the vendors bank account may depend on a simple
rule based on company code currency and bank account currency for example, if a vendor supplies
materials to multiple company codes. Alternatively, it may be a complex rule related to the nature and
currency of payment (e.g., cross-border transfer, domestic funds transfer, and the ability of the vendors
bank account to receive such payment).

If you could store the vendors bank details in the vendor invoice, then you could also use it while
making automated payments. However, you cant key vendor bank information directly into an invoice
that you create in your SAP system. This would lead to sub-optimal use of master data (vendors bank
account information) in transactional data (vendor invoice) from the database viewpoint, because you
would have to store the bank account information in each invoice. Your SAP system has an optimal way
of addressing the issue by providing a bank identier partner bank type that you can associate to
the bank details in the vendor master and then use in the vendor invoice. With this method, the bank
identier provides a relationship between bank details in the vendor master and vendor invoice,
allowing for the use of bank details with the vendor invoice during automated payments.

Ill look at how to assign multiple bank accounts in the vendor master and how to include bank
identier information in manual vendor invoices both with and without reference to a purchase order
(PO). (You can create an invoice without reference to a PO if you are buying a very low value item on an
ad hoc basis. When you create a PO for a purchase, you have to create an invoice with reference to a PO.)

Ill also show you how to update this information after go-live if you didnt use multiple bank accounts
before go-live with the mass maintenance process. Ill explain what to do in the case of vendor invoicing
through Electronic Data Interchange (EDI). Ill cover two methods of manual invoice creation and one
method of automatic invoice creation from an EDI message. I developed these approaches from
experience on an R/3 4.7 system, though it applies to mySAP ERP Central Component (ECC) as well.

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Much of the documentation on this subject is incomplete. For all three types of invoicing methods, you
need to assign multiple bank accounts in the vendor master to the partner bank type, which Ill explain
in the next section.

Assign Multiple Bank Accounts in the Vendor Master

Your SAP system provides the functionality to store and use information from multiple vendor bank
accounts in the Payment transactions screen of the vendor master general data via transaction FK03
(Figure 1). Figure 1 reects the bank type determination logic I used in the vendor master, using the
three-digit International Organization for Standardization (ISO) currency code as the Bank type.

Figure 1 Bank details vendor master

You can use the BnkT (bank type) eld in the vendor master to enter text dierentiators for identifying
the vendors bank accounts. If you leave the bank type eld blank against a bank account in the vendor
master, then it serves as the default bank if the bank type information is missing in the vendor invoice.
You may want to leave this eld blank if the vendor has only one bank account and you want the system
to select that bank account for all payments.

If the bank type is blank for multiple bank accounts, then the system looks for the rst bank account
with the blank bank type in the vendor master to use as the default. You are not required to dene the
text values in my example, INR, SGD, and USD elsewhere in your SAP system. The eld allows
any value up to a length of four characters. Ill demonstrate the use of bank type with vendor invoice
later on.

The system performs a check at the time of invoice creation on the bank type value used in the vendor
invoice against the bank type values used in the vendor master. If you have not dened the bank type
value in the vendor master prior to using it in the vendor invoice, the system shows an error message.
The system performs the check to ensure that you are using a bank type value in the vendor invoice
against which it can nd a bank account in the vendor master. Otherwise, the system cannot determine a
bank account for making payments to the vendor.

Prerequisites for Vendor Bank Selection

You need to take care of a few conguration prerequisites before you can use vendor bank selection in
the automated payment functionality.

1. Check the Bank details check box in the payment method as dened at the country level in transaction
FBZP. This ensures the selection of the bank details from the vendor master at the time of the automatic
payment run. If you dont do this, the system does not copy the bank details into the payment IDoc that
it creates as a result of the automated payment run (transaction F110).
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2. Make the Bank Business Partners eld optional in the eld status group a ached to the vendors
reconciliation G/L account by selecting the bu on under Opt. Entry for this eld. This eld maps to the
Part.bank type (partner bank type) eld in the vendor invoice. If the Bank Business Partners eld is not
optional and is in a suppressed state, then you cannot input the partner bank type eld in the vendor
invoice.

Note

Bank type is known as partner bank type in the vendor invoice and maps to the eld BSEG-BVTYP. You
can maintain the eld status group through SPRO>Financial Accounting>Accounts Receivable and
Accounts Payable>Business Transactions>Incoming Invoices/Credit Memos>Carry out and check
document se ings>Maintain Field Status Variants. You can create a vendor invoice in the system in
multiple ways. Ill address the three methods of vendor invoice creation and the ways to use the partner
bank type functionality in the following sections so you can make the payment to the vendors selected
bank.

Method 1: Without Reference to a PO

You can create a vendor invoice manually without reference to a PO using transaction FB60. Once you
enter transaction FB60, you need to ll in the details related to the invoice in the Basic data tab, including
the vendor number, invoice date, posting date, and reference and amount details.

You can see the Payment tab in Figure 2, which shows elds for payment terms (Pmnt terms), payment
method (Pmt Method) and partner bank type (Part. bank). Fill the Part. bank eld with the appropriate
value. As you see, you will pay from House bank eld, and vendor receives money to the bank entered
in Part. Bank type. You already maintained the bank type in the vendor master data (Figure 1). Provide
the ose ing G/L account information in the bo om pane in the FB60 screen to create the invoice. Save
to post the document.

Figure 2 Create a vendor invoice using transaction FB60

The invoice posted through FB60 makes a credit (CR) entry against the vendor and a debit (DR) entry
against the ose ing expense G/L account. Figure 3 shows the vendor line item containing the bank type
information. At the time of the payment run, the system uses bank account 22222 because I used bank

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type INR in this invoice (Figure 1).

Figure 3 Example accounting document created using transaction FB60

Method 2: With Reference to a PO

You can also create the vendor invoice manually with reference to a PO by using transaction MIRO. I
have created a new invoice with reference to a PO for services provided by the vendor, as opposed to the
pure accounting document in the rst example.

You generally procure goods and services by raising a PO against a vendor, so you create the invoice
with reference to the PO. (If you are procuring very low value items on an ad hoc basis without a PO,
then you may have to create the vendor invoice using FB60, as discussed earlier.) MIRO creates an
invoice document, which you can see using transaction MIR4 (Figure 4), and an accounting document,
which you can see using transaction FB03 (Figure 5). You can ll in the appropriate value in the Part.
bank eld in the Payment tab in transaction MIRO, as in Figure 4. I used a blank value in the bank type
eld. I already maintained it in the vendor master data before I created the vendor invoice document.

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Figure 4 Create a vendor invoice using MIRO

Figure 5 Example accounting document created using transaction MIRO

After entering transaction MIRO, enter the company code in which you are going to post the invoice
using menu path Edit>Switch Company Code, or by pressing F7. Provide the invoice date, posting date,
and reference in the Basic data tab. In the PO reference tab on the bo om pane of the screen, provide the
purchase order details (Figure 4). Provide the partner bank type details in the Payment tab. Click on the
save icon to post the documents. I left the Part. bank (partner bank type) eld blank in this example to
demonstrate the use of the default bank account later on. Im using default bank account 33333 from
Figure 1 here. The accounting document contains the payment information in the Part. bank eld.

You can use mass maintenance of the partner bank type eld if the vendor provided multiple bank
accounts only at a point after go-live and you need to pay the invoices you created before to these
multiple bank accounts. See the sidebar, Mass Maintenance of Partner Bank Type in Vendor Invoices,
for a detailed description of this.

Method 3: Automatic Creation from 810 EDI Message

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So far I have discussed two methods to create a vendor invoice manually in the SAP system. While these
methods are useful, organizations that have matured in their SAP use prefer to automate tasks such as
the posting of vendor invoices, thereby reducing manual intervention and eort. Vendors also benet
from automation because they receive money directly into their bank accounts and dont have to spend
resources on collecting and depositing payments to their bank accounts.

You can automate vendor invoicing by using EDI. The vendor sends the 810 EDI message to the SAP
system. The system provides the INVOIC01 standard IDoc that you can use to map to the 810 EDI signal
to post the vendor invoice (Figure 6). Now Ill take you through an example to demonstrate the use of
the partner bank type with the automated selection rule of the vendors bank account.

Figure 6 Illustrative vendor invoice IDoc in SAP

You can process the vendor invoice IDoc through the standard function module
IDOC_INPUT_INVOIC_MRM. You rst specify the function module in the partner prole of the vendor
via transaction WE20. The INVOIC01 IDoc doesnt contain any segment that can carry the partner bank
type information. However, the function module provides access to user exits through which you can
code the customized rules for vendor bank selection to populate the appropriate partner bank type in
the invoice.

Use the customer function 014 (user exit ZXM08U25) to populate the partner bank type in the invoice
(Figures 7 and 8). You can populate the partner bank type eld using the change table eld E_RBKPV-
BVTYP.

Figure 7 Custom table to store rule-based value of partner bank type

Figure 8 User exit ZXM08U25

Step 1. Check for conditions in which you want to populate the partner bank type. My example makes
the bank account selection based on company code currency, so a simple check here is to ensure that the
vendor master exists in multiple company codes. If the vendor master doesnt exist in multiple company
codes, then you dont need to use the bank type eld.

Step 2. If the check in Step 1 is met, lay down the rules that determine the partner bank type.

Figure 7 shows the custom table that contains records illustrating the rules used in this article for
determination of the vendor bank. I used the records maintained in the custom table to identify the
partner bank type to use in the vendor invoice in step 3.

Step 3. Amend eld E_RBKPV-BVTYP in the user exit (Figure 8) and write the partner bank type value
to it. In Figure 9, you can see the ABAP code that I used to amend E_RBKPV_BVTYP in the user exit to
write the partner bank type value. The system derived the partner bank type value using the user exit to
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create an accounting document (Figure 10).

Figure 9 User exit code logic

Figure 10 Example invoice created using user exit ZXM08U25

After you create the invoices with the three methods discussed above, you then need to perform an
automatic payment run to select and make payment against the open vendor items. This applies to all
three invoice methods.

Automatic Payment Run I will now complete the process by using transaction F110 to conduct the
automatic payment run so I can show you the results and the selection of the vendors bank account for
the four invoices that I have created.

Create a payment run manually using transaction F110. Fill the Parameter tab using the vendor number
and company code to restrict the selection of vendor invoices to those created in Figures 3, 5, and 10 in
the main article and Figure 1 in the sidebar. Execute the proposal run to create a proposal for the
payment against selected vendor invoices. The proposal list in Figure 11 displays an invoice and the
associated vendor bank account details. You can now use the partner bank type eld to cross-check the
invoices created in this article and the bank accounts selected in Figure 11 per the original requirement
in Figure 1.

Figure 11 Vendor bank selection during proposal run

Once you conrm the proposal run for accuracy of document selection and data, run the payment run
by clicking on the Payments bu on on the Status screen of transaction F110. This creates the payment
documents in the SAP system. Then go to the Printout/Data Medium tab via transaction F110. Use
program RFFOEDI1 under the bo om pane Lists along with an appropriate variant, which you can
create using transaction SE38. Create the variant with the combination of company code, house bank,
account, and payment methods. This ensures that you can select all the invoice documents in the
proposal list for processing so you can create the payment IDocs. Go to the Status tab to create the
payment IDoc automatically through menu path Edit>Payments>Schedule Print. Figure 12 illustrates a
sample payment IDoc I created. The sample IDoc contains the chosen bank account details of the vendor.

Figure 12 Example payment IDoc

Mass Maintenance of Partner Bank Type in Vendor Invoices

The functionality I discussed in methods 1 and 2 assumes that youve been using the partner bank type
functionality from the time the vendor went live in your SAP system. However, a practical situation may
demand that a vendor provide single bank account details at the time of go-live, and later on provide the
details of the other bank accounts. A robust solution thus should address the issue related to mapping of
all open documents (vendor invoices pending payment) to the respective partner bank types. If you
dont map the open documents, then the system picks up the default vendor bank account (the one with
the blank bank type in the vendor master) when you use transaction code F110 to create the payment
IDoc. If you have not maintained a default bank in the vendor master, then it does not pick up a bank at
all. In either case, you may end up making a payment to the wrong bank account. In such a case, you
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need to perform mass maintenance on the Part. bank eld to populate the
correct bank type value in all open invoice documents. Ive created an example of a vendor invoice
created with a blank partner bank type to demonstrate how you can perform mass maintenance on the
Part.bank type (partner bank type) eld even after you have posted the vendor invoice (Figure 1). I
created the invoice using transaction MIRO. Note that in Figure 1 I left the Part.bank type eld blank
intentionally to demonstrate the mass maintenance functionality. This case is similar to the one shown in
Figure 7 in the main article in terms of the invoice creation. However, I changed the bank type value in
this case from blank to SGD using mass maintenance, so I can use bank account 44444 for payment
(Figure 1 in the main article).

Figure 1 Vendor invoice with blank partner bank type

To perform mass maintenance, use transaction FBL2N. Enter the selection parameters to select those
documents for which you need to maintain the partner bank type eld. Follow menu path
Environment>Mass Change>New Value, which produces a pop-up window. Enter the new value of the
partner bank type SGD in the Part.bank type eld and click on the Execute changes bu on. Select the
invoice document (Figure 1) using the selection parameters upon entering transaction FBL2N. Then
provide the value for the partner bank type eld that you found in the New Values pop-up window. The
partner bank type eld acquires the new value in the vendor invoice document (Figure 2).

Figure 2 Vendor invoice post-mass maintenance of partner bank type

// This post is copy for it.toolbox.com. I post it here because it is not just a comment but high quality enough to be
considered as a post on a topic

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