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You can use the online payment update to transfer payments in real time, so when posting in FI, you can transfer them to FM. If you have used the conventional Payment Selection until now, you can migrate to the online payment update. For more information, see Migration of the Payment Update.

A line item is generated in Funds Management when an invoice receipt or outgoing invoice is posted. This line item has the status Invoice and is displayed under Invoices (value type 54) in the information system. When an incoming payment or outgoing payment is posted in Financial Accounting, two line items are created in the corresponding invoice account assignment. The first line is displayed in the Invoice status (value type 54, amount type 200) and the second line in the Payment status (value type 57, amount type 250). Once an invoice is paid in full, the status is set to Paid.

Prerequisites

  • Before you can use the online payment update, you must activate the new general ledger and document splitting. For more information about this, see Migration to New General Ledger Accounting.

  • 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 Implementation Guide for Funds Management Government, under   Actual and Commitment Update/Integration   General Settings   Assign Update Profile to FM Area   and Update Profile.

  • You must first activate the online payment update in Customizing for Funds Management. For more information, see the Implementation Guide for Funds Management Government, under   Actual and Commitment Update/Integration   Integration   Define Settings for Payment Transfer  .

Features

Payment matching

The online payment update guarantees payment matching between FI and Funds Management. 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 Funds Management. For more information, see FI Funds Management Payment Matching.

Transferring payments without invoice reference

Payments without invoice reference can only be transferred to Funds Management if the transfer of payments on account from FI is active in Customizing for payment transfers. Payments without invoice reference are documents posted as payments on account, this means without clearing and without invoice reference. In these documents, commitment items were posted with financial transactions 90 and 80 (bank) and 60 (customer/vendor).

The transfer of payments without invoice reference enables these postings to be included in the payment matching also.

These postings are only updated statistically in Funds Management; no budget is actually consumed. These statistical postings are reversed if an invoice reference to these payments is created through postings in FI.

Updating bank check clearings

With the Payment Selection Using Extended Function, you can distinguish between payments from a bank or check clearing account and payments from 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 about this, see Update Financial Transaction 80 for Bank and Check Clearing.

Handling credit memos

If an invoice is cleared by a credit memo, reduction and payment records in the amount of the credit memo are updated in FM.

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

  • Reduction record with value type Invoice and amount type Reduction

  • Payment record with the value type Payment and the amount type Paid Credit Memo

These payment records have budget but are not displayed in local reporting.

Handling partial payments and residual items

If an invoice is paid through partial payments or payments with residual items, reduction records for the invoice and payment records are generated (in the amounts paid) in Funds Management. If the invoice has several expenditure or revenue items with different FM account assignments, the partial payment of the invoice is updated in proportion with the respective invoice amounts in Funds Management.

Overpayments

In order to guarantee the payment matching, overpayments are updated in Funds Management, whereby the overpayment amount is distributed in proportion with the expenditure and revenue items of the invoice. The updated reduction and payment records refer to the invoice for which the residual item was created. As soon as the payment residual item is cleared in Financial Accounting with a different invoice, the overpayment is transferred to the corresponding invoice in Funds Management.

If you do not want to update the overpayments in FM, you can do this by writing off the overpayment in Financial Accounting as a simple difference rather than a residual item with invoice reference. This difference does not have an invoice reference in this case so the system interprets it as a payment on account. If you have activated the update of payments on account in Customizing, the overpayment is updated as a statistical noted item in FM (see above). Otherwise the overpayment is not updated.

Date of update

The update of payments in Funds Management occurs with the posting date of the clearing document. An exception when determining the update date creates the following business transactions:

  • The posting date of the clearing document is in the previous fiscal year

  • Clearing reset without reversal

  • The period to be posted to is closed (if the Period-Based Encumbrance Tracking (PBET) is active).

With these business transactions, the update date is determined as follows:

  • If a date is defined under   Accounting   Public Sector Management   Funds Management   Posting   Tools   Period-Based Encumbrance Tracking   Define Update Date  , this date is used.

  • If no date was defined, the system updates these postings on the system date.

Year-end operations

The following situations may arise in the transition period during year-end operations:

  • Payment occurs from an invoice from the old fiscal year; this business transaction is handled as follows:

    • If the invoice in Funds Management has already been completely reduced, the automatic commitment-zero-carryforward is started in order to carry forward the invoice to the current fiscal year. The payment update then occurs in this fiscal year.

    • If the invoice is not completely reduced and the payment is not in a defined expiry month (for more information, see the documentation for the relevant in Customizing for Public Sector Management under   Funds Management   Actual and Commitment Update/Integration   Integration   Business Add-Ins   BAdI: Define Expiry Month  ), the system issues a corresponding error message. In this case, the invoice should be carried forward with the fiscal year change to the current fiscal year.

  • Payment from the old fiscal year is cleared with an invoice in the current fiscal year. In this case the payment is updated on the update date (assuming it is in the fiscal year of the invoice) defined under   Accounting   Public Sector Management   Funds Management   Posting   Tools   Period-Based Encumbrance Tracking   Define Update Date  , or on the system date.

Critical business transactions

To be able to use the online update for payments in Funds Management, certain posting rules exist to ensure an unique assignment between an invoice document and a payment document which facilitates a correct update in FM. The critical business transactions that are to be noted for the payment update are listed in SAP Note 882379.