Electronic Bank Confirmation of Supplier Payments

This document describes the concept of electronic bank confirmation for supplier payments, which is an integration between the automatic bank statement (ABS) and the AP payment proposal process. You can use this functionality to allocate payments on confirmed payment proposals automatically or manually in the ABS process.

Background

For payment methods defined in 'AP Payment Method. Open' (CRS071) with the parameter 'Bank confirmation' set to 1='Yes, manual', payment proposals confirmed in 'Supplier Payment Proposal. Open' (APS130) end up as a payment reference number for manual bank confirmation in 'Suppl Payment. Report Bank Confirmation' (APS190). Payments for invoices that are included in such a payment reference number in (APS190) cannot be processed in a bank statement in 'Bank Statement. Open' (ABS100).

To allocate a payment in (ABS100) to a supplier invoice that is included in a payment reference number, you can instead use a payment method defined in (CRS071) with the parameter 'Bank confirmation' set to 3='Yes, electronic by ABS'. This will enable the electronic bank confirmation functionality.

Limitations

The functionality is only available for supplier invoices where 'AP Payment method' in (CRS071) is set with 'Payment class'=3, 'Transfer method'=3 and 'Bank confirmation'=3.

Overview of functionality

In 'Suppl Payment. Report Electr Bank Conf' (APS187), records are created when a payment proposal is confirmed in (APS130). The included supplier invoices are displayed in 'Electronic Bank Confirm. Open Details' (APS188). The payment reference number and the included invoices will be displayed in these programs only and not in (APS190). The records cannot be changed, but can be displayed or deleted (depending on their status).

There is status handling for both the payment reference number in (APS187) and the included invoices in (APS188). The statuses are updated during processing of the bank statement in (ABS100) except for the initial status, which is set when the payment proposal is confirmed in (APS130).

These are the statuses in (APS187), which depend on the statuses of the included invoices:

Note:  Deletion of records in (APS187) is only possible for the statuses 10 and 90.

These are the statuses in (APS188), namely the status of each invoice:

Note:  Deletion of records in (APS188) is only possible for invoices in status 1='Sent'. Invoices in status 1 will remain in (APS188) until they are paid on a bank statement. Invoices in this status can be deleted from (APS188) and will then appear on a new payment proposal in (APS130).

These additional information numbers are used in the process for electronic bank confirmation:

Note:  When you delete records from (APS187) or (APS188), the additional information numbers 406, 409, and 469 will be deleted. The payment proposal in (APS130) will also be updated with the changes. If an entire payment reference number is deleted from (APS187), all included invoices will also be deleted.

If a payment voucher is deleted in 'Voucher. Open Erroneous' (GLS038), the status of the invoice in (APS188) will be reset to 1='Sent'. This is also true for payment voucher reversal in 'Voucher. Reverse' (GLS900) if the parameter 'New voucher date' has not been enabled. In both these scenarios, the invoice will not be included in any new payment proposal, but is considered to be paid on a new bank statement in (ABS100) or deleted from (APS188). The additional information numbers will remain as they were before the deletion or reversal. The bank statement will not be updated when a payment voucher is reversed in (GLS900) or deleted from (GLS038).

The header status in (APS187) will be changed automatically when a payment voucher is deleted from (GLS038), if the payment reference number header status is equal to or greater than 20='Confirmed' before the deletion. When a payment voucher is reversed in (GLS900), the header status in (APS187) will also be changed automatically.

Outcome

Before you start

Follow These Steps

  1. Create a payment proposal in (APS130) for a payment method where 'Bank confirmation' is set to 3='Yes, electronic by ABS'.

  2. Check and confirm the payment proposal in (APS130).

  3. When the payment proposal is confirmed (in status 9), a payment reference number will appear in (APS187) in status 10='Sent'. The included invoices are displayed in (APS188). The invoices will be in status 1='Sent'.

  4. The bank statement is then electronically entered in (ABS100) through MI programs.

  5. Validate the bank statement using related option 21. When this is finished, start the 'Automatic allocation' in (ABS100) using related option 22.

    When the bank statement is allocated (in status 6), the related supplier invoices in (APS188) are set to status 6=’Allocated’.

    The status of the payment reference number in (APS187) is automatically updated. If all included invoices are in status 6, the payment reference number header will be set to status 20='Confirmed', but if any of the included invoices are in status 1, the header status will be 15='Partly Confirmed'.

  6. After allocation, use related option 9='Update to General Ledger' in (ABS100). When the status is 9 in (ABS100), the payment voucher will be created and the invoices will be paid in Accounts Payable.

    When the bank statement is updated to the general ledger, the included invoices in (APS188) will be set to status 7='Confirmed'. The status of the payment reference number in (APS187) is automatically updated. If all included invoices are in status 7, the payment reference number header will be set to status 90='Reconciled', but if any of the included invoices are in status 6, the header status will be 25='Partly reconciled'. If any of the included invoices are in status 1, the header status will be 15='Partly confirmed'.

  7. If needed, the status of the payment reference number in (APS187) can be recalculated using function key F20 (all payment reference numbers will be recalculated) or related option 7 (the selected payment reference number will be recalculated).

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