Use Payment Order Functionality to Clear Invoices Being Paid

  • by Kees van Westerop, Senior SAP Consultant, Kwest Consulting
  • May 31, 2011
When using automatic payments to pay outstanding invoices, you normally clear the invoices being paid. Thus, the invoices are no longer visible as open items on the vendor open item list. In some countries the paid invoices should remain open. Learn how the SAP system’s payment order functionality handles this kind of payment.
Key Concept
To make automatic payments without clearing the invoices being paid, SAP developed the payment order functionality. By using payment orders the invoices paid are cleared only during bank statement processing. Therefore, the clearing of invoices paid by means of a payment order differs from the standard clearing.
In some countries, for instance Russia and the Scandinavian countries, invoices paid using automatic payments are required to remain open until the payment is confirmed by the incoming bank statement. Under these circumstances you must use the so-called payment orders for automatic payments.

The invoices paid with payment orders can be cleared only when the payment has been confirmed by an incoming bank statement using the payment order as reference. The incoming bank statements can be processed either electronically or manually. Electronic bank statements are processed using transaction code FF_5; manual incoming bank statements are processed using transaction FF67; invoices paid by payment orders can be cleared only by using the payment order as a reference. This means that additional configuration is required to be able to clear invoices based on payment orders.

I explain how to configure payments orders and how to use them for automatic payments. I also discuss the manual clearing of invoices paid by payment orders and the processing of the bank statements.

Using Payment Orders for Automatic Outgoing Payments

To be able to use payment orders for automatic outgoing payments, first you must set up the payment method to be used within Customizing. The only difference between a payment method for payment orders and any other payment method is just one indicator. Therefore, configuration is needed to set this indicator.

 

Kees van Westerop

Kees van Westerop has been working as an SAP consultant for more than 25 years. He has an MBA degree in mathematics and a degree in finance. Kees has been concentrating on the financial modules, especially in general ledger accounting, cost center accounting, and consolidation. He also has a great deal of experience with rollouts of kernel systems and integrating finance and logistics.

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