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The Multi-Stage Payment Methods or Bank Chain function enables business to make a payment via more than one bank (for example, correspondent banks or intermediary bank of the house bank and/or recipient bank and/or intermediary banks).

Without bank chain, when making a payment to a business partner abroad, business had to specify their house bank and the business partner’s bank when processing payments. These two banks represent the start and end of the payment cycle and it was down to the house bank to determine via which banks the payment should be made. Using the bank chain function, you can now specify this bank chain yourself, leading to faster payment transaction processing and considerable cost savings through reduced bank charges. (Reference: https://help.sap.com/viewer/6211bf1accac4f2e813e7f8e5fc19e99/6.18.11/en-US/cf62d25320cd4608e10000000... )

We can define up to 3 correspondence banks in SAP

Bank chain configuration in SAP:

There are 3 type of bank chain which can be configured in SAP

1: Bank chain by house bank

2: Bank chain for bank to bank transfers

3: Bank chain for business partners

In this blog post we will be focusing mainly on Bank chain for business partner.

Generally configuration of bank chain will involve following steps irrespective of type of bank chain.

1: Define scenarios

2: Activate bank chain

3: Define general bank chain

4: Maintain recipient specific bank chain master data (for determination or correspondence bank)

1: Define scenarios

-Scenarios depict the search strategy which will be used for deciding the correspondence bank.  SAP delivers some predefined scenarios which will be sufficient to cover any business aspect, however we can create our own scenarios.

Defining scenario will be include scenarios definition and the characteristic of the scenario.

If general search checkbox is selected then system will look for correspondence bank in general bank chain (to be defined in step 3) while processing the payment.

NOTE: Step 3 is not required if general search checkbox is not selected.

Next we will maintain the ranking order for searching correspondence bank based on various master data as shown below.

2: Activate bank chain

Based on the scenarios defined above we have to activate the desired scenario based on client requirement.

3: Define general bank chain

This will be configured to select the bank chain if recipient specific bank chain is not maintained in the master data level.

We will maintain correspondence bank in below node.

Under assignment tab, we will maintain the house bank details for which the above correspondence bank should be considered for determination.


4: Maintain recipient specific bank chain master data

In this step we will maintain the customer /vendor specific master data as per the bank accounts already maintained in vendor /customer master

Tcode: FIBPU

Upon execution we will see the list of bank accounts maintained for this particular vendor /customer master.

Double click on bank accounts for which correspondence bank details are to be maintained. Here we can maintain correspondence bank per sender bank (i.e. house bank)

Now maintain the correspondence bank details as per currency and House bank

This completes the configuration for multi stage payment.

Now if you execute the payment run for above vendor then it will select the correspondence bank as per above configuration and the same will be displayed in payment proposal as well as updated in payment file .( At table level you can find these details in REGUH table as well) .


Hope you liked this blog 🙂 .

Reach out to me in case of any queries .
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