2373026 - Automatic Allocation of Incoming Payment Advices in Bank Statements (MT940 UK)

Payment Advices are generated in SAP ByDesign. These are to be automatically confirmed via processing of an automatic bank statement, e.g. format MT940 UK.

Although the Advice ID is reflected in the memo-text of a bank statement transaction, an automatic allocation does not happen.  Affected allocations have to be manually processed and candidate remittance advices have to be allocated manually in tab Payment Confirmations/Returns.

The expectation is that the external Advice ID shown in bank statement transaction memo (tag :86:) should facilitate an automated allocation without post-processing via setting up suitable Rules for Analyzing Memo Lines.

SAP Business ByDesign

You can access relevant payment allocation(s) either in:

1. Go to the Payment Management work center.
2. Navigate to the Payment Allocations view.
3. Select the relevant Payment Allocation in status In Preparation.

or via the posted bank statement:

1. Go to the Liquidity Management work center.
2. Open the Bank Statements view.
3. Navigate to the relevant bank statement and Edit.
4. Follow the Postprocessing: Required link to access the relevant payment allocation.

The Document ID referenced in the bank statement transaction header (tag :61:) determines if and how an incoming payment advice/remmittance advice can be allocated - and the Payment Allocation posted automatically.

The prerequisites to enable an automatic allocation when posting an automatic bank statement are as follows:

• Payment Advice ID = External Reference in Payment Allocation.
• Payment Advice ID is identical to Payment Reference in Remittance Advice.
• Advice ID has to be perpetuated 1:1 in transaction header :61: after the External Transaction Code (e.g. 'FFPC' for MT940 UK).

Depending on specifications of your house-bank the digits for the document identifier in transaction header (tag :61:) might be restricted and consequently the Advice ID will be truncated in the bank statement.

Example:

• Advice ID and the Payment reference show as: A88888888-88888888
• In the statement-line (:61:) the document-reference is truncated and shows as  88888888-8888888

 An automatic allocation according to described prerequisites is not possible and then has to be effected manually.

Using Rules for Analyzing Memo Lines identifying payment advices as depicted in transaction memo (tag :86:) - is not an option to identify payment advices (externally generated payments).

This is a system-definition.

Numbering convention for payment advices should be made consistent with specifications for bank-statements issued by the house-bank.

A possible workaround would be the modification of the content of the Payment Advice field Payment Reference - which is also used to identify a candidate transactions.
The purpose of the Payment Reference is to enter a value known to the house-bank - and later used by the bank to confirm the payment.
Since the Document ID in the Statement-Line (:61:) is truncated (e.g.: 88888888-8888888) - this string would have to be filled as Payment Reference during the advice creation upfront.

KBA , SRD-FIN-CLM , Cash and Liquity Managment , How To