Customer payment Automation (Processing Rules for Bank statements (Fiori App-F3555))

[Colin_Thomas]

Background

Customer pays the invoices through banks. When a customer payment against invoice is received by the bank, on bank statement note to payee, bank provides a reference such as IBAN number of the customer. When bank statements are processed, the line item on bank statement remains unprocessed (most of the times). Bank statement line items are processed manually by matching the details sent on note payee of bank statement.

User Story

Anna is an Accounts Receivables analyst. Anna is responsible for processing customer payment for Europe. Customer payments are received on bank statements. On a bank statement note to payee, bank send the details of IBAN number. Anna has spent lot time in tracing the customer based on the IBAN number and process the line item of bank statements. This process is time consuming and tedious. Anna was searching for an automation; she was curious how S4 HANA Fiori apps can bring some automation.

Business Requirement

In Europe, when a customer pays against an Invoice, some banks do send the IBAN details on the line 86: of MT940. As Anna manual searches the IBAN and traces the customer to reprocess the bank statement, system should be able to find the customer based on the IBAN number and Company code based on bank account number for which the bank statement line item is processed and post the amount to customer.

Anna had reached out to Richard Gilmore SAP Solution architect for a solution in S4 HANA.

SAP Solution

Richard Gilmore analyzed the problem statement, and he proposes the following workaround solutions to address the automation of bank statement reprocessing to Anna.

1. Using search strings, create a string which searches the IBAN number and map a customer number
2. Using FEBAN search function on assignment tab. Search for customer open item can be done, if customer/reference invoice details/assignment is known.
3. Using Processing Rules for Bank statement Fiori App – F3555 and create own rules.

Richard Gilmore also explained the challenges in workaround solutions.

• In search strings, it be dependent on IT to move the changes. Moreover, the customer master data is not synchronized in all the landscape (development, test, and production system) which could be a showstopper for User Acceptance testing (UAT).
• Using FEBAN search function on assignment tab, customer identification should be available note payee. Values such as IBAN is not available, values like customer number/reference/Assignment/Xref1/Xref2/XRef3 are only available on FEBAN. FEBAN search function is a manual function it can’t be automated.
• Processing Rules for Bank statement Fiori App – F3555 and create own rules which can be direct done in Production system. There is no dependency of IT in this scenario. Anna herself can create/modify the processing rules as it flexible in Fiori App F3555.

Anna was overwhelmed with the proposed solution Processing Rules for Bank statement Fiori App – F3555. As per Anna it is possible to create own rules  with help of Richard Gilmore.

End to end processhttps://1drv.ms/v/c/3f40613527668a1d/EVNJbIv5eRtCrXwmekgMk8IB-jfMhl44gN4qptP49fYyzg?e=MSbJE1 

Create Processing Rule in Fiori App 3555 (Manage Processing Rules – For Bank Statements)

Following features are available

1. Create rule for following action types
   1. GL Posting
   2. AP/AR Posting
   3. Clear in sequence
2. Procedure type – Two step posting (like a posting rule, posting area 1 and posting area 2. Define sub-ledger of bank (which is credited in posting area 1) and customer (which is credited in posting area 2).
3. Rule for Incoming for AR and outgoing for AP

Flexible maintains of condition based on the data available on note to payee (line 86: on MT940) likewise on tag <Refs> of CAMT.053. As IBAN number is received on note to payee, memo line is mapped with individual IBAN number of a customer.

Posting area 1 which GL accounts is credited (interim) when bank statement is processed. And document type which should be posted when bank statement is processed.

Posting area 2 which customer to be posted based on IBAN number.

• Posting when bank statement is processed based on processing rule maintained in Fiori App F3555 (Manage Processing Rule for Bank statements).
• Only one customer can be mapped to a rule. An upload functionality is possible. XML file with the details can be uploaded as mass upload to create processing rules.
• Reprocessing rules can be applied on failed bank statement line items

Disclaimer 

Please note this solution works if bank is sending IBAN number which can be mapped to a customer. The value on note to payee should statistical value.  Customer open items will not be cleared unless there is a matching value for clearing.

Bank statement posting with processing rules, might not be visible on FEBAN. The posting can be seen on Fiori App - F1520 (Reprocess Bank Statement Items).

Conclusion 

Automation of Customer payments based on the IBAN reference on note to payee (line 86:) of bank statement can be posted to customer.