E-Remittance Solution

Payment Notification to Vendors / Customers via Email

or Facsimile Transmission
Executive Summary..........................................................................................................................................2
Introduction......................................................................................................................................................2
Requirement.....................................................................................................................................................2
Conventional Approach....................................................................................................................................2
New Solution....................................................................................................................................................2
Importance of Fax Flag...............................................................................................................................3
Field Notes ID.............................................................................................................................................3
Master Data Maintenance...........................................................................................................................4
Variant for the Payment Program...............................................................................................................4
Technical settings in SAP Connect..............................................................................................................5
Advantages.......................................................................................................................................................5
Summary...........................................................................................................................................................6

Author: Sanjay Babel

Date: 07/02/16

E-Remittance Solution

Executive Summary
An automated Business Processing solution in a cost efficient way is the new Mantra of
the Businesses today. This Paper attempts to describe one such cost effective process
solution developed for sending Automatic Payment Advices to Vendors / Customers via
email or Facsimile Transmission from R/3 (SAP).

Introduction
Currently, many organizations using R/3 generate a Print Out of the Payment Advice after
executing a Payment Run. This Payment Advice is then sent by mail-post to the vendor.
Alternatively this service is availed from the banker for a charge.
The man hours and the cost spent on this clerical work is huge in an organization

Requirement
There is a requirement to send email notification originating from R/3 to vendors /
customers automatically after the Payment Run is executed.
Business Case - There is a strong business case to have this solution in place since it
would save a huge number of man hours spent in mailing the Payment Advices or
manually faxing it. Consequently, there is a substantial savings in the cost incurred.

Conventional Approach
Customized Developments have been done in the past to achieve this. However it was
restricted to only a specific payment program. So every time a new payment program is
used, a separate development was required.

New Solution
The new solution is a generic one with minimal one time development. In the new
solution, a Business Transaction Event (BTE 2040) has been activated. This BTE is
triggered every time a Payment Medium is generated after an Automatic Payment Run
(F110) is done. This BTE is attached to a Function Module (/TPISP/YF_BTE_00002040)
(copy of SAMPLE_PROCESS_00002040). The technical details of this could be seen in
the function module SAMPLE_PROCESS_00002040
Transaction: FIBF

Author: Sanjay Babel

Date: 07/02/16

E-Remittance Solution
Also there is a custom table YFEMAIL_PAYADV maintained in sm30. This table
contains Flags for Emails and Fax for each combination of Company Code and Payment
Method.
Its looks as follows:

The system works as follows:

Every time a Payment Advice is sought to be generated after executing F110 transaction
this BTE is triggered. The Function module attached to this BTE then checks the
combination of the Company code and Payment method from the REGUH table in the
custom table YFEMAIL_PAYADV. If the flag for email is checked for the given
combination, it would trigger an email to the recipient, maintained in the vendor master
data. If email address is missing in Vendor Master Data, it will check for the Fax flag. If
the Fax Flag is checked in the custom table, it would send the fax to the Fax number
maintained in the Vendor Master. If the Fax number is missing as well in the vendor
master, a print out of the Payment Advice is generated.
However, if the email flag is not maintained for a combination of the Company code and
Payment method in the custom table, the system would exit from the Function Module.

Importance of Fax Flag

In case a company code wants to participate in Email functionality, but not in the Fax
functionality, the Fax Flag should not be checked. If this flag is not checked the function
module will try to find the email address first, if not found it will directly generate a
Payment Advice print out. However, in case a company code wants to participate in Fax
functionality, the Fax Flag should be checked in addition to the Email Flag. If the email
address is missing in the vendor master, the system would look for the Fax Number and
send a Fax provided the Fax flag is checked.

Field Notes ID
There is a case where email needs to be sent for Purchase Order to Vendor. In that case
the email is sent to the recipient address where the radio button is checked. Normally a
recipient of P.O does not handle payments in an organisation. Hence to distinguish the
recipient of Payment Advice, the Notes ID is introduced. See the screenshot below

Author: Sanjay Babel

Date: 07/02/16

E-Remittance Solution

Default email id the system uses

Mail id this BTE will use

The notes ID PAYADV is also maintained in the custom table next to the email flag.

Master Data Maintenance

The email address of the recipient should be maintained in the vendor master and the
Notes ID PAYADV should be maintained just next to the recipient the mail is intended
to be sent. The first email address (with the radio button) is the default email address used
by the system to send other documents (like P.O etc). The email address where Notes ID
is PAYADV will be used to email the Payment Advice. Hence this care needs to be
taken while maintaining the email addresses in the Vendor Master.
If the email address is missing in the vendor master, the program looks for the fax
number in the vendor master. And then sends the Payment Advice via fax.

Variant for the Payment Program

The checkbox for Print payment advice notes in the variant attached should be checked.
See the screenshot below

When the Print program is executed, the Payment log in F110 specifies that the mail has
been sent

Author: Sanjay Babel

Date: 07/02/16

E-Remittance Solution
It is advisable to check the SAP Connect gateway to ensure if email has been
executed instead of the spool request. Use transaction SOSB or SOSG

Technical settings in SAP Connect

The email addresses and fax numbers of the Vendors would be activated in SAP Connect
so that emails or facsimile could be sent from R3 to external systems. Using the
Transaction SCOT the nodes SMTP for Emails and FAX for Facsimile transmission
can be opened up for the vendor email addresses and Facsimile numbers.

Advantages
1. This solution can be used in future by all company codes who would like to email
or facsimile the Payment Advice after the Payment Run is executed. This solution
would save huge amount of man hours and cost involved in manually despatching
the Payment Advices to vendors / customers
2. The BTE avoids the development of a custom program for the email functionality
and saves the repetitive development cost
3. There are three alternatives in the solution viz. Email or Facsimile Transmission or
a Print Out. The output is sure.
4. This solution is an easy one time set up with minimum maintenance
5. The Business Partners (Vendors and Customers) get the Payment Advice details
immediately thus helping them in their Cash flow Position

Author: Sanjay Babel

Date: 07/02/16

E-Remittance Solution

Summary
A generic solution to email or Facsimile the Payment Advices to Vendors / Customers
could be used in future by many sites without having to develop a custom solution each
time a different Payment program is used.
--------------------------------------------End of Document------------------------------------------

Author: Sanjay Babel

Date: 07/02/16