Route Processing for External Payments 

Purpose

You can use this process for all types of external payments:

·        Cross-bank-area payments using one or more in-house cash centers

The in-house cash center forwards the incoming payment order to a second in-house cash center which serves as a clearing partner. This process can be repeated. Each in-house cash center is based on a separate bank area. The in-house cash centers can be located as follows:

¡        In the same client

¡        In different clients

¡        In different SAP systems

·        Local payments

The in-house cash center forwards the payment orders to a subsidiary company which is also defined as a clearing partner.

·        Central payments

You do not need route processing for internal payments.

Prerequisites

You have determined the parameters for route processing. For more information, see Editing Route Processing.

Process Flow

This is a basic version of the critical process flow steps. The aim of route processing is to determine a clearing partner to make the payment.

       1.      When the in-house cash center receives an IHC payment order, the system checks if it is an external payment.

If this is the case, in other words if the bank numbers or bank countries of the payer and payee are different, the system triggers route processing.

       2.      The system checks the fields in the IHC payment order.

If a route processing rule matches the fields, the system adds the route to the list of routes found.

       3.      The result is a list of one or more routes that are permitted according to the specified rules. A clearing partner is defined in Customizing for each route and the IHC payment order can be forwarded to this clearing partner.

The system ultimately determines the clearing partner from the route with the highest level of priority.

Example

You let the system determine the clearing partner based on the transaction currency of the payment orders to avoid foreign payments.