In the Update Profile valid for your FM area, you must specify that the update takes place on a payment basis. You must define that value type 57 (payments) is relevant for the update in the update profile.

For more information, see the IMG for Funds Management Government under  Actual and Commitment Update/Integration General Settings Assign Update Profile to FM Area and under Update Profile .

You must first activate the payment selection in Customizing for Funds Management .

For more information, see the IMG of  Funds Management Government, under Actuals and Commitments Update /  Integration Integration Define Settings for Payment Transfer .

Payment matching (enhanced function)

The payment matching is only possible with the enhanced payment selection function. The payment matching allows you to compare the changes in your bank and bank clearing accounts (documents in which commitment items with financial transaction 90 or 80 (bank) were posted to) with the updated payments in Fund Management. For more information, see Payment Matching FI - Funds Management .

Transferring payments without invoice reference (enhanced function)

Payments without invoice reference can only be transferred from the enhanced payment selection function to Funds Management. Payments without invoice reference are documents that are posted as payments on account, without clearing and without partial payment or invoice reference. In these documents, commitment items were posted with financial transactions 90 and 80 (bank) and 60 (customer/vendor).

By transferring payments without an invoice reference, you can include these postings when comparing data in FM with the payments in Financial Accounting (FI).

These postings are only updated statistically in Funds Management, no budget is actually consumed. These statistical postings are reset if an invoice reference to these payments is created through postings in FI. The documents in Funds Management are either deleted or reversed depending on your Customizing settings.

If the payment matching is active, the selection criteria automatically appears on the selection screen for transferring payments without invoice reference.

Update bank-check clearing (enhanced function)

With the enhanced function for payment selection , you can distinguish between payments from a bank or check clearing account and payments of a bank balance account. This distinction is possible if you assign a commitment item with financial transaction 80 to the bank clearing accounts, and commitment items with financial transaction 90 to the bank balance accounts. For more information on this, see Update Financial Transaction 80 for Bank and Check Clearing .

Handling credit memos (Enhanced Function)

If an invoice is cleared through a credit memo, the invoice and payment are converted to payment with the payment selection. Note that it is not enough to post the credit memo as a partial payment of the invoice. If the two documents do not match, a residual item must be created with the clearing.

You can deactivate the conversion of credit memos for the enhanced function for payment selection , by using enhancement SAPLFMPA (component EXIT_SAPLFMPA_002). Note the following: If you carry forward commitment in fiscal year change operations, the deactivation could cause problems if a credit memo is not completely cleared. If this happens, the whole invoice amount is carried forward to the next fiscal year, not just the open amount.

If you choose Separate Display , two records are written with the conversion of credit memos, whereby the payment record is displayed separately:

Handling partial payments and residual items

If an invoice is paid through partial payments, reduction records for the invoice and payment records are generated (in the amounts paid) in Funds Management. If an invoice has several expenditure or revenue items with different FM account assignments, the procedures for enhanced function for payment selection and original function are different.

In the standard system, the enhanced function for payment selection uses the supplementation procedure and the original function uses the splitting procedure. If necessary, you can also activate the splitting procedure for the enhanced function for payment selection in the Customizing of Funds Management .

Date of update

For the enhanced function for payment selection, the update always occurs on the posting date of the payment – irrespective of the settings in the update profile.

With the original function for payment selection, the update depends on the settings defined in the Update profile .

Exceptions for the two functions are: reversals (for example, clearing resets), credit memos and, if the period-based encumbrance tracking (PBET) is active or year-end operations were executed, postings in closed periods.

For more information on the update date, see Update Date for Payments .

Handling vendor and customer transfer postings

The enhanced function for payment selection writes off transfers of invoices and payments. Note that such transfers can create document chains and therefore large clearing bundles. This impairs the performance of the payment selection. SAP recommends limiting or avoiding extensive transfers.

The original function for payment selection converts an invoice to a payment as soon as it is cleared. With transfers therefore, you must note that invoices are displayed as paid even if they were only transferred.

Handling tax

How tax is treated with the payment selection depends on which procedure you chose for updating tax in the Customizing of Funds Management in IMG activity Define Other Settings . The update can be gross, separate or net:

For more information, see Handling Tax .