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Purpose

You use a payment order to enter a payment operation. A payment order comprises an ordering party item and one or more recipient items. It documents a payment from a bank account to one or more recipient accounts.

Payment orders can be initiated either internally or externally.

Terminology

Payment operation

Elements of a payment order

Bank transfer

Ordering party

Payment recipient

Debit

Payee

Payer

General

Order initiator

Order recipient

When you post a payment order, the system generates payment items from the payment order items/positions that are updated on the respective accounts as specified in the order. A payment order is only a group of payment items, and does not actually represent a posting. A payment order always has a balance of zero.

There are various types of payment orders:

  • Internal payment orders

    Payment orders whose recipients/paying parties are in your own bank. This means that the bank identification number of the recipient is set as the bank’s own. During posting, the system checks if the recipient account is managed in Bank Customer Accounts (BCA). If this is the case, the system creates internal posting items.

    If the account number is unknown to BCA, the recipient item is transferred to the external payment transaction system, which then transfers the postings to the appropriate subledger.

  • External (domestic) payment orders

    Payment orders whose recipient bank is domestic. In this case, the recipient bank is input on the entry screen. In the case of external payment orders, the recipient items are forwarded to the external payment transaction system for further processing.

  • Foreign payment orders

    Payment orders whose recipient bank is abroad. In this case, the bank country is also input on the entry screen.

In addition to the differences mentioned above, you can define in Customizing the different default values of each order type for the transaction type, medium, and the payment method used.

You have various options for identifying the recipient bank in Customizing under   Account Management   Basic Functions in Account Management   Set Up Recipient Account Identifications   :

  • Classic

    Bank country, bank key, account number, (possibly bank control key)

  • Classic + SWIFT

    Bank country, bank key, SWIFT code, account number, (possibly bank control key)

  • IBAN + SWIFT

    IBAN, SWIFT code

If you have maintained customer fields in the Customizing for the bank area, they are also available for the recipient and ordering party items and are transferred from the system to the bank statement.

If you have set the BP Bank indicator for the product associated to the account in Customizing, then you can select only one set of payment details (defined for the account holder) as the payment order recipient (   Account Management   Basic Functions in Account Management   Maintain Payment Transaction Settings for Deposit Banking   Participation in Payment Transactions   ). It is not possible to use the Payment Order with More than One Recipient function for this type of account.

When you post a payment order, the system runs various checks. Some of these checks depend on the business transaction and the transaction types used. You can specify the checks and the business transactions in Customizing (for more information, see the Implementation Guide (IMG) under   Account Management   Basic Functions in Account Management   Maintain Transaction types   ) .

The following are details of the check categories:

  • Formal checks :

    Existence of the ordering party account, existence of the posting date and the specified transaction type.

    If these checks fail, you cannot enter the payment order.

  • Account :

    Check to establish if there are locks for certain transaction types on the ordering party account, if there is an agreement for direct debit orders for debits, and if there is an agreement for collection authorization for credits (this is a comparison with the corresponding fields in the account master data).

  • Value date :

    Check if value date specification is allowed for the recipient account and if the value date is within the tolerance range defined by the following features:

    • Value date conditions

    • Value date limits

      You define the value date limits in Customizing for Bank Customer Accounts by choosing   Account Management   Default Values   Define Limits for Value Date.  

      The system successfully posts the payment order only if it lies within the time limit defined in either of these features.

  • Limits :

    Check whether debiting the account would lead to the internal credit limit being exceeded.

  • Business partner :

    Check if the account holder is locked (you need to maintain this in the business partner maintenance by choosing   Status   Lock   ).

  • Check (PF) (only applies for banks)

    When a check (PF) created in BCA check management is presented, the system looks to see if this check (PF) is flagged as locked or already cashed .

For internal payment orders, the system runs these checks only for the ordering party/recipient account (except for formal checks). If the recipient/paying account does not exist in the current account system for internal orders, the system forwards the appropriate item to the external payment transaction system.

Special case: Ordering party/payee account and recipient/paying account are assigned to the same business partner as account holder. In this case, the checks described above are also run for the recipient/paying account.

Procedure if one of the checks fails:

If one of the checks fails, the payment order is initially not posted, and you have the following options for further processing:

You can:

  • Park the payment order.

    In this case, the system forwards the payment order to postprocessing. For more information, see the documentation for the RFBKPOEX report under Process Flow of End-of-Day Processing .

  • Force the posting of the payment order.

    You can individually switch off the corresponding checks to force the posting.