Top Tips to Optimize Your Automatic Payment Program

  • by Gaurav Agarwal, Principal Consultant, SAP S/4HANA Finance, Infosys Limited
  • April 4, 2012
Learn how to better use the Automatic Payment Program (APP) feature in an SAP system for making payments to your vendors. Discover tips to optimize the APP process, such as automating APP, automating email generation from APP, restricting selections, and grouping open items.
Key Concept
The Automatic Payment Program (APP) is a commonly used SAP process by which a business makes payments to its vendors or customers in different modes. Large organizations have thousands of payments going out every month, and thus, it becomes important to use and optimize this SAP tool. You can execute APP via transaction F110 for various company codes, multiple vendors, and different payment methods. The system automatically determines the relevant information for making the payment (e.g., the bank account from which the e-payment is to be made or the kind of output to be generated) based on customization settings.

Many organizations have already set up their SAP systems to automatically create payments for multiple vendors in a single run. I explain various tips to optimize the Automatic Payment Program (APP) process, such as the automation of the next step after executing APP in which an organization can pass the payment information from the SAP system to vendors via email or fax. Using an SAP system for this process could save you a lot of costs involved in manual transmission of information to vendors to keep them updated on what payments have been made to their accounts.

I assume that your organization has already implemented APP and thus can execute APP with the basic features for creating a payment proposal, editing a payment proposal list after verifying what is to be paid, and executing an actual payment run that creates payment documents. I explain the following useful tips to optimize the use of APP:

  1. Automate email generation for payment advice to vendors with various flexibilities
  2. Restrict accidental generation of automatic emails during payment proposal
  3. Separate or combine options for vendor line items in APP
  4. Separate outputs for different payment methods in the same APP
  5. Use options for including or excluding open items or vendors in the APP
  6. Automatically schedule a payment program proposal run and automatically send proposal logs via email to relevant reviewers to authorize payments
  7. Restrict authorizations on critical APP sub-functions

Gaurav Agarwal

Gaurav Aggarwal is SAP S/4HANA lead consultant at Infosys Limited. He has more than 14 years of experience, including 11 years in SAP Finance. He has expertise in both SAP FI and Controlling (CO) with integration to other modules in manufacturing and process industries. He is a chartered accountant and SAP Certified Financial Consultant. He holds a bachelor’s degree in commerce and is a techno-functional expert with thorough knowledge of the necessary ABAP for functional experts. He is a veteran in G/L, AR, AP, banking, FA, Travel Management, and closing cockpit and has handled greenfield implementation, upgrades and conversions, rollouts, and support projects.

See more by this author


No comments have been submitted on this article. 

Please log in to post a comment.

To learn more about subscription access to premium content, click here.