Payments by Domestic Bank Transfer 

Use

The system comes with all the settings you need to make domestic payments with the Payment Medium Japan – Domestic DME (and Bank Charges) report. Companies in Japan can use this report to create electronic files and mail payment orders for domestic bank transfers in the format prescribed by the Japanese bankers Association.

Features

You generate the payment media using the Payments program in conjunction with the supplied payment method T (transfer) and the Payment Medium Japan – Domestic DME (and Bank Charges) report (RFFOJP_T). This report calculates and posts bank charges, and allows you to print the accompanying payment advice notes, DME accompanying sheets, and payment summaries. These functions are also supported for merged banks.

Activities

Customizing

Set the payment method T in Customizing for Financial Accounting (FI) by choosing Accounts Receivable and Accounts Payable ® Business Transactions ® Outgoing Payments ® Automatic Outgoing Payments ® Payment Method/Bank Selection for Payment Program ® Set Up Payment Methods per Country for Payment Transactions.

Then carry out the IMG activities under Accounts Receivable and Accounts Payable ® Business Transactions ® Outgoing Payments ® Automatic Outgoing Payments ® Payment Media ® Country-Specific Settings for Payment Media ® Domestic Bank Transfer (Japan).

Master Data

In the vendor master record, enter the vendor’s bank details on the Payment Transaction screen as usual. In addition, enter the account holder’s name and the payee’s bank control key. Also enter an instruction key, which specifies whether you or the vendor will pay the bank charges.

Periodic Processing

When you execute a payment run, the system determines how much you have to pay the vendor and automatically posts this amount, the bank charges, and the VAT (Value Added Tax) to the corresponding G/L accounts. It also generates a DME file with the payment instructions and any printouts that you want. Depending on who is paying the bank charges, the following documents are posted:

·        Charges debited to paying company code

·        Charges debited to payee

For more information about the payment program in general, see Payments.