Howdy hey fellow self-distributing O’beer users.
If you use Fintech, iControl, or another form of lump sum EFT transfer that comes with remittance details (ie grocery store chains) then you have had the onerous task of individually applying payments to A/R invoices. On average, to use the Incoming Payments function it would take me about 30 seconds and ~8 clicks to receive a single payment. On days with 150+ incoming payments it would take me over an hour to finish this task. With that many individual clicks, it was inevitable that a mistake(s) would be made that would take even more time to fix. All-in-all using Incoming Payments and Deposit functions sucked, like majorly. I felt it was a necessity to figure out a better way than fat fingering every payment and credit into O’beer to save my sanity and to offset early carpal tunnel syndrome. In Esprit de Corps of self-distro breweries I wanna share how I have expedited receiving EFT payments.
DISCLAIMER: I am not an accountant or a financial advisor. All advise and methods found herein are for educational purposes only. Implementing any steps or procedures are solely your responsibility. Missing steps or omission of critical details could cause problems. Please review any procedures with your co-workers and use your test database to try out any changes before implementing them in your live database!
So a couple of a things before we go any further:
*Understand what a clearing account is
*Have the user rights to edit Chart of Accounts and bank account settings
*Be actually using an EFT service, setting this up without using EFT is not worth it
*Confidence to tweak SAP (fun fact- this “how to” is just unlocking the potential of the platform O’beer runs on top of)
Okay! So the skinny of what I am about to show you is how to set-up the pathing to allow the Payment Wizard to isolate BPs by EFT payment type (Fintech, iControl, etc…) so payment runs are quick and easy. How does receiving 75 payments in under 5 minutes with less than 25 clicks sound? Awesome, right?
Here's what I'm gonna cover in 2 parts with multiple steps. I’ll cover Part 1 in this post and part 2 in a follow up.
Part one: Setup
1. Create a clearing account (CA) in the Chart of Accounts (COA)
2. Create a bank account
3. Link the bank to CA on the COA
4. Create payment methods that utilizes the newly created banks
5. Create a reciprocal payment method for “negative payments” (ie credits)
6. Create payment terms
7. Assign BP’s payment method and payment terms
Part two: Receiving Payments
1. Using Payment Wizard
2. Verifying payment
3. Clearing the CA
- To create a clearing account go to the Chart of Accounts and click on the “ADD” button on the icon ribbon (looks like a piece of paper with a red dot). In this example I will be creating a Fintech Clearing Account as 10095-00. This CA will be a level 4 account in the Assets Drawer under Bank Accounts.
When creating your CA if it automatically creates it as a level 2 account then you can edit it with the Edit Chart of Accounts function. This Function can be found in Modules -> Administration -> Setup -> Financials -> Edit Chart of Accounts OR use the search menu to find the function.
NOTE: you can 1 have CA for all EFT payments if you want. I prefer to have a separate CA so that only 1 kind of EFT payment type hits that account.
SIDE THOUGHT: Maybe making the CA a level 5 account under the account that Fintech actually deposit to seems a reasonable thing to do…
- Now we need a “bank account” that will be linked to the CA. To do this go to Modules -> Administration -> Setup -> Banking -> Banks OR search for it. I setup my account as Country Code = “USA”, Bank Code = “EFT_Fintech”, and Bank Name = “Fintech Clearing.” Feel free to make the Bank Code or Bank Name whatever seems appropriate to you but I err on the side of being really clear with my names.
- Now I have created a “bank account” now I need to link it to my CA. To do this go to Modules -> Administration -> Setup -> Banking -> House Bank Accounts or search for it. I setup my House Bank Accounts as Bank Code = Bank Code from last step, Branch = “Internal Clearing”, Account No. = “0000”, Bank Account Name = “Fintech Internal Clearing Account”, and G/L Account and G/L Interim Account = the account number we created in step 1.
- Now we must create the method that the Payment Wizard will direct incoming payments to deposit into. To do this Modules -> Administration -> Setup -> Banking -> Payment Methods. NOTE I have edited the default method “IN-EFT” to act as my Fintech because 90% of all my EFT payments are from Fintech. If you make different payment methods for each EFT type then use the default In-EFT as a template.
Change Description to Fintech Incoming Payment. Change the House Bank to match the bank created in step 2. Pick Negative Payment Method to “Out-EFT/ACH.”
- Now we must make the default “Out-EFT/ACH” also use the same bank, as created in step 2, so that when a Fintech batch has both debits and credits in a single transaction everything uses the same account. Change the “Out-EFT/ACH” to use the same House Bank to match the bank created in step 2.
- Now we want to create Payment Terms such as “Fintech.” I do this to help isolate Fintech accounts as secondary key when I run the Payment Wizard. You can create Payment Terms from any BP card by going to Payment Terms (Tab) -> Payment Terms -> Define New.
- Okay so now we need to change all BP’s that are Fintech users to be setup to use the Fintech Payment Method. If you edited the default In-EFT to act as the Fintech method then all your BPs will already be setup to use the Fintech method. If you created a Payment Method from scratch then you will need to manually change the default for each BP to the correct payment method. You should also set all BP that are Fintech customers to use the Fintech Payment Terms. An easy way to do this is to use the Business Partner Utility.
So now everything is setup. Part 2 will go over running the Payment Wizard.
TO BE CONTINUED
Do you like data? Do you hate multiple windows? Do you want to add some pizzazz to your Obeer cockpit? Well friend then just access your SighGlass via the Browser widget!
Drop the Browser widget into the common features area. The Browser will automatically have some default SAP webpage in it. Click on the wrench in the top right corner of the browser window, click settings, and paste in the SightGlass url into the right spot. Now log in!
Wamm-o! You got a pretty sleek looking cockpit.