3525585 - Interpretation algorithm 801 - India Reference Number for Payment Order based on KIDNO

How interpretation algorithm 801 is used for bank statement processing that contains the UTR number - India localization.

SAP S/4HANA Cloud Public Edition

In the bank statement format MT940, tag 86 contains the UTR number. The interpretation algorithm to be used is 801 - India Reference Number for Payment Order.

As per the definition of UTR, it can be 6, 16, or 22 characters long and can only consist of alphanumeric characters. Additionally, it should start with the name of the bank, such as HSBC, CITI, HDFC, etc. The UTR number should meet these criteria.

Recommended Standard Process (UTR-Based Reconciliation):

1. The supplier invoice is posted using Create Incoming Invoices or Create Supplier Invoices – Advanced.

2. Payments are executed using Manage Automatic Payments. During this process, the system automatically updates the Payment Reference field (KIDNO) in the payment document based on the payment media file generated by the bank.

3. In the MT940 bank statement format, the UTR number is available in Tag 86.

4. With Interpretation Algorithm 801 – India Reference Number for Payment Order assigned, the system matches the UTR from the bank statement with the Payment Reference in the payment document, enabling automatic bank reconciliation.

Manual Payment Scenario :

If the payment is processed manually (not via Manage Automatic Payments):

• The Payment Reference (KIDNO) field cannot be updated manually.
• As an alternative, the following fields can be maintained and used for reconciliation:
  • Reference Document Number (up to 16 characters) with Interpretation Algorithm 021
  • Assignment Number (up to 18 characters) with Interpretation Algorithm 015

Note: The alternatives are suitable only for shorter reference numbers. For UTR numbers up to 22 characters, the automatic payment process with Interpretation Algorithm 801 is required.

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