Background

Payment to vendor against various invoices after deduction of appropriate taxes (withholding taxes
etc.) or any discounts / adjustments is one of the prime responsibilities of Accounts Payable function
in an organisation. Payment to vendor is the culmination of procure to pay process in SAP accounts
payable.
When we discuss about the payment to vendor, we speak about a huge volume of checks / online
transfers etc. which are made either daily or periodically by the organisation. In bigger organisations
the quantum is humongous and printing of every check / preparing bank letters for each and every
payment manually becomes literally impossible task. In order to overcome this and many other
difficulties, SAP has provided by SAP called Automatic Payment Program (APP) which automatically
makes payment to various vendors at the same time.
In this article we will try to find out what configurations / transactions are to be done in order to use
APP. The series will look into all the aspects as given below:

House Bank
o Creation House Bank
o Creating Bank Key Master Data
Vendor Master Data relevant to Payment
Posting a Document with requisite details
Payment Process

In this post we will start with configuration of House Bank

Implementation Consideration
T Code: FBZP

Image 1.01

In the image 1.01 we can see the House Banks tab available for us to use. Click on the same and the
system will navigate us to the screen appearing under Image 1.02

Image 1.02
Enter your Company Code here and the system will navigate you to the next screen as appearing in
the image 1.03 where we will actually do the House Bank creation

Image 1.03
On the screen appearing under image 1.03 we can see that no House Bank has been created yet. As
we want to create a new House Bank click on the New Entries button and the system will navigate us
to the screen appearing in Image 1.04

Image 1.04
The screen (Image 1.04) has following fields for maintenance:

House Bank
Bank Country
Bank Key
Telephone 1
DD No
Contact Person

Lets enter the data in the fields one by one

House Bank
Enter the House Bank Code which you want to create for your House Bank.
This is very important step as this code will be used in most of the payment transactions so it would
be advised to use coding logic for your banks. This will also help users to identify the bank from its
code.
Bank Country
Enter the Country in which your bank exists
Bank Key
This is a Master Data which can be created separately as well using T Code FI01. We will create the
same here. You may enter an appropriate code for the Bank Key as well. After entering the code click
on create button and the system will navigate you to the screen as appearing in Image 1.05

Image 1.05

Enter all the required data which is self explanatory. We may also maintain the bank address by
clicking on the Further Address button or (F8) key.
Click on save and this will save Bank Key for you.
Bank Key is a master data and has to be created separately in different clients.
Next Step is to create Bank Account under the House Bank.
This facility is provided by SAP to avoid creation of multiple House Banks for different accounts
under same banks branch. We can create one House Bank for say ABC Bank and can create various
Bank Key AB1, AB2, AB3 for different accounts maintained with the bank.
For creating bank account, double click on the Bank Accounts folder appearing on the left hand side
and the system will navigate us to the screen as appearing under Image 1.06

Image 1.06
On the screen under Image 1.06 click on New Entries button and the system will allow us to create a
Bank Account under House Bank as appearing under Image 1.07
Note: Most of the information is stored for the combination of House Bank and Bank Account, it is
due to this reason it is important to create the Bank Account correctly. Also the coding logic should
be such that the user should easily identify the Bank Accounts relevant for the House Bank.

Image 1.07
Enter following information:
Account ID
As explained above, please enter a code which can relate the Account ID to the House Bank
Description
This is complete description for the Account ID which may contain Account Number
Bank Account Number
Enter the Bank Account Number Here. At this level we also have an option to maintain IBAN
Number. Refer image 1.08 for the screen
Control Key
This key is to identify the nature of account and values to be entered differ from country to country
based on the banking requirements.
Alternative Account No.
The alternative bank account number is used for distinguishing house bank accounts with identical
account numbers. This can occur if a house bank manages accounts in different currencies using the
same account number.
The alternative bank account number must then only be defined if it differs from the bank account
number. You must maintain it together with the bank key in the system.

If you have house bank accounts with identical account numbers and use the electronic account
statement for these accounts, then you enter the internal key used by your house bank here (usually
the account number with attached currency encryption). If you use the manual account statement,
then you can freely assign the alternative account number. Using bank account number + currency
code is, however, recommended.
G/L Account: Enter the Main Bank General Account created for the bank.
Here just for information would like to elaborate a little of G/L account creation. In SAP we create
three different accounts for any bank as below:

Main Account
Receipt Account
Payment Account

We will discuss in detail about the above G/L accounts in our coming posts
Currency: Enter the currency in which this account is maintained.
Discount acct: Credit memos resulting from discounting bills of exchange at this house bank account
are posted to this account.

Image 1.08
This part of House Bank Data contains address maintained by us under the Bank Key. Also we can
maintain the IBAN (International Banking Number) here.
The next part of Control data contains information like SWIFT code to be maintained for the House
Bank.
This brings us to the end of this post which contains information on creation of House Bank.

Please note that the configuration except Bank Key gets transported. Hence, before transporting the
same, please create the Bank Key using T Code FI01 in all the clients and you are ready to use the
House Bank.