Title
Payment Selection

Description
This program updates payments posted in Funds Management (FM) inFinancial Accounting. Payments with invoice references or paymentswithout invoice reference are converted, regardless of your Customizingsettings.

Payments with Invoice Reference
Payments with invoice reference are displayed under the document numberof the corresponding invoice in Funds Management (FM) and convert themto the status Payment.
A pair of documents with the corresponding invoice account assignment isgenerated from the payment with invoice reference with the paymentselection, whereby the first item is displayed in the status invoice
(value type 54, amount type 200) and the second line in the statusPayment (Value type57, amount type 250). If the invoice is completely cleared, it isconverted to the status Paid (all line items receive PAYFLG ='X') and the program does not process it again in the next run.
You can also update partial payments and residual payment with invoicereference in FM that are not directly updated in FM during posting inFinancial Accounting.
So, for example, if you post a partial payment of $5 to an invoice withvalue $10, the system leaves the invoice in the Invoice statuswith value $10. The partial payment creates the pair of documentsmentioned above, with $-5 in status Invoice and $5 in statusPayment. The figures in the balances are then correct. If thepartial payment document is cleared later, the original invoice is setto Payment.
Cash discount taken is considered by the profit and loss readjustment.

Payments without Invoice Reference
During active payment matching, the program also transfers payments withno invoice reference to Funds Management.
Payments like this are documents in which commitment items with the financial transaction 90or 80 (bank) and 60 (customer/vendor) were posted which were not partialpayments and the payment was not cleared with an invoice.
Updating these payments means that you can compare the FM payments withthe FI payments.
Payments without invoice reference are only updated statisticallytherefore, no budget is assigned. If the invoice reference for thesepayments is created in FI, they are deleted or reversed, in accordancewith the Customizing settings and converted to the invoice, as describedabove.
You can compare the data of the FI document and the FM document usingthe program Payment Matching at Document Level(RFFMRC07).

Prerequisites

• In Customizing, an update profile must be assigned to your FM area which
permits payments to be transferred to Funds Management.
You define this setting in the implementation guide (IMG) of FundsManagement Government in the section AssignUpdate Profile to Area

• In Customizing, you have to define whether the payment selection should
use the original function or the enhanced function when you transferpayments with invoice reference to FM.

• You also have to activate payment matching in Customizing so that you
can transfer payments without invoice reference to FM.
You make these settings in the IMG of Funds Management Governmentin the section Define Settings for PaymentTransfer.

• You cannot define that the valuated goods receipt should be updated at
the actual time of goods receipt when defining the Customizing settingsfor updating goods receipt and invoice receipt in FM. For moreinformation on these settings, see the IMG, underDefine Other Settings.
Note that a payment transfer free of errors to FM can only be guaranteedif you follow the posting procedure recommended by SAP. You can findmore information on this in the SAP note 400924.

Features

Selection

Payments with Invoice Reference
You can execute payment selection for a company code or for a FM area.If you enter a company code, payment selection is carried out for thiscompany code, the FI fiscal year, and the document interval entered. Thedisadvantage of this procedure is that you have to start the program forall fiscal years in which there are invoices that are still open in thecurrent year.
If you enter a FM area, payment selection is carried out for all openinvoices of the current FM fiscal year. The advantage of this procedureis that you only have to execute the program for the current FM fiscalyear.
If you have activated the enhanced function, you can reduce the runtimeof the program considerably by restricting the selection to a particularday (entry date). The program then only selects the items enteredon this day.
In the original payment selection it is not possible to improveperformance in this way because the program imports all open items.

Payments without Invoice Reference
You can restrict the selection of the documents to be converted to adocument interval for a FM area or company code. Alternatively, you canuse the posting or entry date as selection criteria.
In addition, you can control which documents should be transferred to FMor reversed in type of document to be processed.

Output
The reduction and payment records created during payment selection areusually updated in FM on the posting day of the payments under"Invoices".
The following posting scenarios are an exception to this:


• Conversion of credit memos


• Clearing of invoice in the current year with a payment from the previous
year.

• Reversal of payment after clearing reset.


• FI posting date is in a FM period that has been closed

This can occur if period-based encumbrance tracking (PBET) is active.
In this case, the update is carried out with the FM posting date. Inpayment selection, the current date appears as the default value for theFM posting date, you can overwrite this.
Note: Within the period-based encumbrance tracking PBET, you candefine a date of update for a combination of FM area and period. Thedate defined here overrides the FM posting date during paymentselection.

Activities
You can execute the program as often as you like without changing theresult. However, no postings should be made between runs and you shouldselect the same parameters.
You can also start the program once online with small document intervalsfor test purposes. You have to execute the program in thebackground for larger volumes ofdocuments.
You should run payment selection every day in order to reduce the amountof disk space needed for saving and to improve performance.

Example
Post invoice with two vendor lines and one expenditure line
70 C : Vend1
30 C : Vend2
100 D : expenditure, commitment item A1 (30), center C1
In FM, the expenditure line is updated with amount $100 -, accountassignment A1/C1 as an invoice online.
100 - : A1/C1, Invoice
and displayed under Invoices in the information system.
If an item is cleared using a payment, this has no effect online onFunds Management. If you start the program with a document numberinterval containing the number of this invoice, the payment of a vendoris treated as a partial payment. Two line items are updated with clearedamounts in the status Invoice and Payment respectively.The overall amount is still displayed under Invoice. Acorresponding document pair is also written for the remainder amount forpayments of the second vendor line item and for a rerun of the program.After complete payment, the document is displayed under Payment.
Partial payments and residual items:
A simple vendor invoice in Financial Accounting
100 C : Vend1
100 D : expenditure, commitment item A1, center C1
is updated online in Funds Management
100 - : A1/C1, Invoice
If an outgoing payment of $50 is made for this invoice, you can postthis outgoing payment in Financial Accounting as a partial payment or asa residual item which refers to an invoice.
Partial Payment:
The following FI document comes from the posting of a partial payment:
50 C : Bank
50 D : Vend1; open, with invoice reference
The original invoice is not cleared: for this reason, the program
leaves the expenditure item in status Invoice:
100 - : A1/C1, Invoice
If you start the program with parameter Partial payment/residualitems
, a pair of documents is generated from the open vendor item:
50 + : A1/C1, Invoice
50 - : A1/C1, Payment
Account assignments A1/C1 each have a balance of $50- and statusInvoice and Payment. In the information system, $100-appears under Invoices and $50+ and $50- is displayed underPayments.
Residual items:
When you post a residual item, the following FI document is created:
50 C : Bank
100 D : Vend1; cleared
50 C : Vend1; open, with invoice reference
The original invoice is cleared; the program switches the expenditureitem to status Payment.
100 - : A1/S1, Payment
The following pair of documents is generated from the open vendor item:
50 - : A1/S1, Invoice
50 + : A1/S1, Payment
Account assignments A1/C1 each have a balance of $50- in statusInvoice and Payment. The information system displays $100-and $50+ under Payments and $50- under Invoices.
If there is more than one expenditure item in the invoice, these valuesare split accordingly.
If the open vendor item for the partial payment or residual itemdocuments is cleared again later (typically, by a payment with clearing)
, the invoice correction items of the Funds Management documentgenerated above are converted to payment.