Automate Payments to Multiple Vendor Bank Accounts by Bank Group Optimization

  • by Kees van Westerop, Senior SAP Consultant, Kwest Consulting
  • April 15, 2008
By using bank groups in the bank master data, you can select a specific vendor bank from multiple bank accounts for automated payments. This method, called bank group optimization, allows you to group your own house bank with the banks used by customers and vendors by giving them the same bank group. See the effect of the setting in the bank master data and how you can combine this selection method with an alternative method for selecting the desired vendor bank account -- the partner bank type.
Key Concept

Automated vendor payment functionality (transaction F110) allows you to send payment details to your bank for making payments directly to your vendor. The payment transaction F110 selects the vendor bank data from the vendor master (transaction FK03). A vendor may keep bank accounts with several banks depending on business requirements, such as receiving payments from multiple countries or in multiple currencies. By using the bank grouping field in the bank master data, the system can automatically select the correct vendor bank account.

In the payment run, the SAP system tries as much as possible to combine bank accounts with the same bank group. You can use a bank group, for example, to group all bank accounts in the same country so that you can avoid additional expenses for international payments. Grouping per country is especially useful when several countries use the same currency, such as the euro. Another reason for grouping might be timing. Transactions among banks within a group may occur faster than among banks not belonging to the same group.

I’ll show a method for selecting the vendor bank account using the bank grouping field (technical field name BNKA-BGRUP) called bank group optimization. It works in both R/3 and SAP ERP Central Component (ECC) systems. After you have set up the master data for both the house banks and the vendor correctly, the system automatically selects the correct bank account. Within customizing it is only required that you activate the use of bank group optimization, which you need to do by company code.

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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9/8/2015 7:03:17 AM
Sridher Sathi

I follow your articles and they very helpful. Thanks for sharing such wonderful articles and sharing your experiences.

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