SAP BCM Confirming Payment Process in SP

Description – Confirming Payment Process in Spain
Overview and Objective

Business Description
New Confirming payment process in Spain for Deutsche bank (from September 2013 )
Background
In Spain, there are some vendors which are required to be paid through confirming payments. A list of
all AP invoices for these vendors are sent to the bank with the payment due dates. This is used by the
bank to discount payments to the vendors. In order to do this, we are currently having a customized
program that selects all “confirming” vendors and send all these items to BBVA Bank. Now we are
migrating from BBVA to Deutsche bank and earlier format is not usable in Deutsche bank.
We have mapped this process in BCM and will be sending these payments in CGI XML format. A new
XML format (ZCGI_XML_CT_DTL) has been developed.
A new payment method 4 has been created for these vendors in Spain.
Steps and Responsibilities in the Process:
1. Payment method 4 will be assigned to vendors requiring to be paid through confirming payment
process. – Responsibility Business
2. F110 proposal will be created by COTA on 15th of every month and will be sent to business for
verification. - Responsibility COTA
3. After getting confirmation from business, payment run will be executed manually and batching
will be done by COTA manually (No F110S) . Responsibility COTA
4. After the payment run, open invoices of vendor will move out of Accounts payable (GL A/c
2011020) and will move to a Special GL A/c 2011053. Open items in this account can be seen
using FBL1N and selecting vendor account with Special GL transactions. Responsibility COTA
5. Batch will be created in BCM and payment file will automatically be sent to bank through Swift
channel. Responsibility COTA
6. Separate payment document will be created per invoice and each payment in the payment file
will have request execution date = Invoice due date. Our bank account will be debited on this
date and we will receive this information in MT940 bank statement. Responsibility Bank
7. Status of the payments will be updated after the file is processed by bank. Responsibility IT
8. Clearing - Autobank rules have been setup by COTA which will automatically clear open items
from Special GL A/c 2011053 and post an offsetting entry to Main Bank account. Responsibility
COTA
Business /Cota
Confirmed Payment requires the orderer “CIF” (Certificado de Identificación Fiscal; Tax ID for
Companies) to be administrated at Deutsche Bank. Please provide this number to your
Implementation Manager. This needs to be done for new Entities !
File Name – Spain Confirming Page 1 of 9 Quick Reference Guide

Payment Process
Accounting Flow
With bank liability To be used (Pay on behalf requirement)

Payment run (F110)
Dr Vendor
Cr Special Ledger (2011053)
Dr Sub Account 1012022
Cr sub account 1012022
Bank statement
(FF_5)
Dr Special Ledger (2011053) (Autobank or Manual)
Cr Main Bnk 1012020
Details of all the above are given below with screenshots
Tips and Tricks
Procedure
Step Action

Payment Process
Step Action
1. Transaction code FK03 > Display Vendor > Company Code Data > Payment transactions
Ensure that payment method 4 has been assigned.

2 Transaction code FB60 or MIRO for Vendor Invoice

Payment Process
Step Action
3 Payment run – Transaction code F110
Proposal run will be done by COTA on 15th of every month and will be sent to business for
verification and Approval. After Approval from Business, payment run and batching will be done by
COTA
4 Accounting Entry
Vendor open item will move from Account payable GL A/c 2011020 to Bills of Exchange Acct
2011053. There will be a debit and credit entry in bank disbursement account which will
automatically be cleared by a scheduled Autosys job.

Payment Process
Step Action
5 Transaction code – FBPM1 – Batching in BCM
This will be done by COTA after the payment run has been completed.
6 Transaction code – BNK_MONI - BCM batch will be created and it can be seen in BNK_MONI
Bank will send a confirmation when the file will be processed and status will be updated as
“Accepted by Bank”
Payment file will be created and sent to bank automatically through Swift Channel.

Payment Process
Step Action
7 Bank Statement – MT940 bank statements will also come automatically through Swift Channel
and will be automatically posted to SAP. Details of each payment will come back on MT940
statement. COTA has setup Autobank rules which will automatically clear open items in GL A/c
2011053 and post an offsetting entry to Main bank GL Account.
Accounting Entry :
Special GL A/c 2011053 – Debit

Main Bank GL A/c 1012020 - Credit
Technical Details below
Migration Considerations from BBVA
1. BBVA accounts will be kept open for those payments already sent for confirming
2. All Invoices already send for confirming Cota to continue F110 runs on 15TH of the month on
those P (pm) invoices until they are cleared down (“old accounting” scenario) – Note Cota or
business to identify those before cutover and ensure that Payment method P is filled on all those
open items (mass change FBL1N)
3. New F110 runs on the new PM 4 - Payment run selection Date up to 180 Days for confirming
invoices (Cota to confirm with Alberto’s team)
4. Conversion – List of payments send for confirming at BBVA to be supplied to Cota from the
business for cross reference on date of cutover
Appendix – Technical Details
XNL payment format details
1. For the banks to identify that a payment is confirming payment we need to send code CONF in
below tag.
2. Service level code that we are sending for these payments is NURG. This is an optional field for
DB but as it is part of our Global design therefore we are sending this for confirming payments
also.

Payment Process
3. Request execution date – This is the date when Supplier invoice will be due for payment which
can be any future date including weekends or bank Holiday. Payment will not be rejected even
though this date is on weekend. Our bank account will be debited for payment only on this date
or following work day if it is a weekend. (DB specific setup)
4. Tax id of Supplier – We are providing tax id of supplier in this field.
File also attached
XML_Format_Descrip
tion_Europe_July201
Appendix – Technical Details Autobank Rules

Payment Process
Special GL indicator might be used.

Payment Process
Payment Process

SAP BCM Confirming Payment Process in SP

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Description – Confirming Payment Process in Spain

Overview and Objective

Steps and Responsibilities in the Process:

File Name – Spain Confirming Page 1 of 9 Quick Reference Guide

With bank liability To be used (Pay on behalf requirement)

Details of all the above are given below with screenshots

Tips and Tricks

File Name – Spain Confirming Page 2 of 9 Quick Reference Guide

Ensure that payment method 4 has been assigned.

File Name – Spain Confirming Page 3 of 9 Quick Reference Guide

File Name – Spain Confirming Page 4 of 9 Quick Reference Guide

File Name – Spain Confirming Page 5 of 9 Quick Reference Guide

Special GL A/c 2011053 – Debit

Technical Details below

Migration Considerations from BBVA

Appendix – Technical Details

XNL payment format details

File Name – Spain Confirming Page 6 of 9 Quick Reference Guide

4. Tax id of Supplier – We are providing tax id of supplier in this field.

File also attached

Appendix – Technical Details Autobank Rules

File Name – Spain Confirming Page 7 of 9 Quick Reference Guide

File Name – Spain Confirming Page 8 of 9 Quick Reference Guide

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