In Korea, business places usually handle payments to their vendors independently from each other. They may use different house banks to manage their payments or they may prefer different payment methods and payment terms.

Documents with VAT have a business place because during the posting the entry of a business place is mandatory. But if business places manage the payments on their own then all documents should carry the business place independent from the VAT. Otherwise the payment program cannot recognize the open items according to business places and those documents without a business place would not be paid by business places.

In the SAP system, payments are made at company code level usually. House banks are assigned at company code level and the payment run can be run only for the whole company code. But to make it possible for the business places to manage their payments independently, the payment program was slightly enhanced for the Korean requirements.

There are two possibilities to select the open items for the payment program:

1. You want to select open items of only one business place:
   Enter the business place to be selected in the parameter screen of the payment run. Under 'Organizational Assignment' the field business place can be found. (If the field is not visible then enter the company code which must be a Korean company code and press the enter key once. Then you should see it.)
2. You want to select several business places:
   Leave the field business place empty under 'Organizational Assignment'. In this case the selection has to be made by defining house banks for each business place.

The house banks carry the business place as an additional feature. If a house bank is assigned to a business place then this house bank is only valid for open items of this business place. But the system requires a separate house bank ID per business place. Even if the house bank is the same in the reality the system needs to have to separate house bank IDs. A house bank without any business place is valid for payments for all business places.

In the IMG you can find the transactions to customize the house banks. Select Financial Accounting ® Bank Accounting ® Bank Accounts ® Define house banks.

Business place 01 uses the account 987 of the Koram Bank.

Business place 02 uses the account 789 of the Koram Bank.

Business place 03 uses the account 5678 of the Cho Hung Bank.

A) Create three house bank master records and assign the correct business place to them:

KOR01 for account 987 of Koram Bank Þ BP01

KOR02 for account 789 of Koram Bank Þ BP02

CHO01 for account 5678 of the Cho Hung Bank Þ BP03

B) Create the account IDs for the bank accounts:

KOR01/trans for account 987 of Koram Bank

KOR02/trans for account 789 of Koram Bank

CHO01/trans for account 5678 of the Cho Hung Bank

C) Customize the bank selection for the payment program:

Ranking order table (T042A):

Account determination table (T042I):

D) When posting open items, enter the business place for paying this open item.

E) Run the payment program.

The automatic payment program selects the first open item. If the first open item was posted using T as payment method and BP01 as business place, then the payment program selects the house bank KOR01. If the program finds that the house bank KOR01 is assigned to the business place BP01, then the check is valid, and house bank KOR01 is used for the payment. The contra posting for this payment takes place on G/L account 11010911.

If the next open item was posted using T as payment method and BP02 as business place, then the payment program tries to select KOR01 but it fails because KOR01 is not valid for business place BP02. The automatic payment program now selects the house bank, which comes next in the ranking table, KOR02. This time the check is successful, because KOR02 was assigned to business place BP02. The contra posting for this payment takes place on G/L account 11010912.

The procedure for an entered document using BP03 as business place is similar. The house bank CHO01 is chosen and the posting takes place on the G/L account 11010913. You can allocate each house bank to exactly one business place or none.

A house bank without an entry in the business place field is valid for all business places.

If separate management of payments for each business place is not needed in a company code, do not enter any business place in the configuration of the house banks.