Payment Requests (SAP Library - Loans Management (TR-LO))

Payment Requests

Use

This function enables you to call up the Payment program for payment requests. This is an additional option for automatic payment in the R/3 System. Unlike the standard payment program, the payments are not based on open items (customer items) but on payment requests.

In the Loans area, you can generate payment requests for simple loan transactions (loans given and loans taken) that are not posted on the basis of customer accounts. The system generates the payment requests when you post flows that are relevant for payment.

For more information, see AC - Accounting ® TR - Treasury ® Treasury Management (TR-TM) ® Payment Program for Payment Requests.

Integration

The Payment program for payment requests can be used for the Treasury components Money Market, Foreign Exchange, Derivatives, Securities and Loans.

There is a link to the payment details. The system can therefore use the house bank specified in the payment details to update the payment data in Cash Management.

Prerequisites

Before you can use the Payment program for payment requests, you are required to make certain settings in Customizing for Treasury in addition to settings in the payment program.

1. To enable the system to generate payment requests for the money market, foreign exchange, derivatives, securities and loans areas, make the following general settings in Customizing for Treasury.

a. In Customizing for Basic Functions, choose Define Number Ranges for Payment Requests and enter a number range for assigning number keys to payment requests.

b. In Customizing for Cash Management, set up the planning levels for payment requests by choosing Define Levels in Payment Requests.

c. In the chart of accounts, define the Clearing account for payment requests and then assign it to the company code in Customizing for Treasury basic functions by choosing Define Clearing Account for Payment Requests.

2. Make the following settings in Customizing for Loans.

a. Activate the Payment details indicator for the relevant product types in Customizing for Loans by choosing Company Code-Dependent Settings for Product Type. When you create a loan with these product types, you can use the payment details defined for the partner in the standing instructions or enter them individually.

b. In Customizing for Loans, make the flow type settings for payment requests by choosing Define Flow Types.

i. Direction: The system uses the payment details that correspond to the direction of the flow. If you do not enter a direction, the system does not transfer the payment details.

ii. Payment request allowed: You must activate this indicator to generate payment requests. If this indicator is not set, payment requests cannot be generated.

iii. Individual Payment Required: You use this indicator to control whether or not flows with this flow type can be netted with other flows.

c. Under Define Account Determination you can you can define a replacement rule for the house bank if the value of the Payment activity indicator is ‘2’. The system uses this value when postings for the product type are not made on the basis of customer accounts, a house bank account has been specified for the flow to be posted, and the posting category is ‘3’ (Bank). If the value of the Payment activity indicator is ‘1’ or ‘X’, you must assign the house bank account to the account symbol.

In addition to the Payment activity setting, also allow for the following:

If you post flows for interest, repayments and charges, such as ‘bank clearing to interest revenue’ or interest expense to bank clearing’, without using a corresponding receivables account (or payables account for loans taken), you must make special settings in Customizing for the withholding flows. Withholding flows are required to withhold discounts, interest and charges from a disbursement or borrower’s note purchase order. They are used to reduce the payment amount (generated on the basis of the nominal disbursement amount) by the withholding amounts. Example: If you generate a payment request for a disbursement and want to post the payment without using payables and receivables accounts, you must define account determination for the withholding flow ‘clearing to bank clearing’ and for the reduction ‘bank clearing to clearing’. The system generates two payment requests; one for the gross payment amount and one for the payment reduction (or increase). The system ensures that both payment requests are netted during the payment run and that a payment medium is only generated for the net payment amount.

Example

Disbursement: 100,000 EUR at a rate of 98% = 2% discount

Posting records:

Withhold discount - no posting to accounts receivable

Disbursement	100,000 EUR	Position to bank clearing
Discount	2,000 EUR	Bank clearing to accrual/deferral
Discount withholding	2,000 EUR	Clearing to bank clearing
Disbursement reduction	2,000 EUR	Bank clearing to clearing

Withhold discount - posting to accounts receivable

Disbursement	100,000 EUR	Position to bank clearing
Discount	2,000 EUR	Receivables to accrual/deferral
Discount withholding	2,000 EUR	Clearing to receivables
Disbursement reduction	2,000 EUR	Bank clearing to clearing

The system checks the payment methods before the flows are netted in the payment program. Thus, if you make a disbursement with a reduction, you must also specify a payment method that has the direction of the reduction when you enter the disbursement. The system copies the disbursement payment methods to the reduction, which means there is always an appropriate payment method for the direction of the reduction. This allows the system to net the payment requests.

Therefore, you cannot save a disbursement or purchase order that contains a reduction unless you have specified the appropriate payment method.

This payment method is never used in the payment run, since the disbursement amount is always greater than the reduction. As a result, the net amount always has the direction of the disbursement.

In Customizing for the flow type, define a direction for the reduction flow type. This enables the system to generate the payment request.

d. If you define payment details in the standing instructions for the business partner, the system proposes these values for the payment request when you create a loan.

3. You also configure the payment program for payment requests. These settings include your house banks, your bank accounts and the required payment methods and payment forms.

In the R/3 library, see: AC - Accounting ® TR - Treasury ® Treasury Management (TR-TM) ® Payment Program for Payment Requests ® Customizing of the Payment Program.

Features

· Entry of the payment details:

- Payment details as standing instructions for the business partner

You can define payment details in the standing instructions for the business partner. The system defaults to these values when you create a loan.

See also: Create Standing Instructions for Payment Details

- Payment details in the loan

You can enter or change payment details in the loan itself.

If standing instructions for payment details have been defined for the business partner, the system defaults to these values. You can adopt or change the proposed values. The system always assigns the default values to the loan, even if you do not call up the payment details screen when you create the loan.

For borrower’s note loans, the system defaults to payment details for the most recent counterparty. If there is no counterparty, the issuer is used. For all other product categories, the system assigns the most recent alternative payer/payee. If there is no alternative payer/payee, the main loan partner is used. If there are several payers/payees, you can choose the one you require in a selection screen.

- Payment details in a borrower’s note order

For product types with order management, the payment details defined in the loan apply for all flows except purchase and sale flows. For purchases and sales, you enter the payment details for the particular purchase or sale in order management. These payment details also apply for the related flows (premium/discount, reduction/increase).

· You can display the payment details for the flows in the cash flow. A standard display variant for this is delivered with the system ('1ZAHLVERBDG').

· Generation of payment requests:

When a posting is made, the system looks at the flow to determine whether or not a payment request should be generated.

· Reversal of flows with payment requests:

Case1: The payment has not been made.

The payment request is reversed when you reverse the posting.

Case 2: The payment has been made.

A corresponding message appears when you carry out the reversal, but reversal is possible. The system generates a worklist in the payment clearing account and you must process the transaction from there.

· You can only transfer a contract if you do not need to reverse any postings that have generated payment requests. If you need to reverse any postings, you must carry out the reversal before you transfer the contract.

Activities

To start a payment run:

1. Choose Accounting ® Generate Payments ® Payment Request. The Automatic Payment Transactions for Payment Requests screen appears. Enter a date and payment run ID.

All information relating to the payment run is stored for these values.

2. Choose Edit ® Parameters ® Maintain. The Automatic Payment Transactions: Parameters screen appears. Enter the values for the parameters.

3. The Dynamic selections function gives you the option of using other fields for selecting payment requests.

4. You can create an additional log by choosing Additional log.

5. You can include report programs for printing payment media and creating lists in the payment run by choosing Edit ® Print programs. In the Automatic Payment Transactions: Print Programs screen, enter the required programs and variants.

6. Save the parameters for the payment run.

7. You now have the option of generating a proposal run or a payment run. Choose Edit ® Proposal ® Schedule payments...

8. Specify a starting time (or immediate start) and a computer, if required.

9. If you create a proposal, you can display the log, payment list and exception list. You can also edit or delete the payment proposal. If you are satisfied with the payment proposal, execute the update run by choosing Edit ® Payments ® Schedule payments...

10. At the end of the payment run the system generates the posting documents, the payment and exceptions lists and the payment media. This concludes the payment run.

For more information, see AC - Accounting ® TR - Treasury ® Treasury Management (TR-TM) ® Execution of the Payment Program in the R/3 Library.