3694918 - Customized Payment Medium format not applied to International Outgoing Bank Transfer Payment

• For bank ABC two payment medium formats, used for international bank transfer are assigned: The standard payment medium format 44 - S.W.I.F.T. MT103 Payment and a customized payment medium format ZXY(ZXY represents the ID of a customized payment medium format). 
• For international outgoing bank transfers, the system selects payment medium format 44 - S.W.I.F.T. MT103 Payment instead of the customized payment format XYZ, specifically created for international bank transfers.
• For the payment payment method International Bank transfer is derived, but the expected payment medium format XYZ is not applied. Instead, the standard payment medium format 44 - S.W.I.F.T. MT103 is used. 
• The issue persists even when the payment method is set to bank transfer or left blank in the supplier invoice. 
• If payment format 44 is removed from the bank, the customized payment medium format Z5 is correctly derived.

SAP Business ByDesign

1. Access Payment Management.
2. Navigate to the Payment Monitor and locate payment ID ABC (ABC represents the payment ID).
3. Verify the bank account details: DEF of company GHI, associated with Bank of Nova Scotia JKL (DEF represents a bank account ID, GHI represents a company ID, JKL represents a bank ID).
4. Confirm the payment method used is International Bank transfer.
5. Observe that the payment medium format selected is 44 - S.W.I.F.T. MT103 Payment instead of the customized format ZXY. 

In the supplier master data, the Bank Charges Paid By field is set to Initiator. For Payment Medium Format 44 – S.W.I.F.T. MT103 Payment, when used with the International Bank Transfer payment method, the Bank Charge Bearer field is defined as mandatory.

When the system determines the appropriate payment medium format, it selects the closest match based on overlapping criteria. Because Format 44 requires a mandatory Bank Charge Bearer value, the system chooses Format 44 – S.W.I.F.T. MT103 Payment instead of the customized format XYZ. 

To check the supplier master data setting: 

• In the supplier’s financial master data, the Bank Charges Paid By field is set to "Initiator" for international bank transfers: 
  • Access the Supplier Master Data.
  • Press View All.
  • Go to the Financial Data and here to the Payment Data sub-tab.
  • Notice the Bank Charges Paid By field. Here, "Initiator" is selected. 

To check the Fine Tune setting: 

• Access the Outgoing Bank Transfers fine tune activity.
• Choose Edit Checks for Payment Medium Formats.
• Find and select payment medium format 44 - S.W.I.F.T. MT103 Payment combined with payment method 2- International Bank Transfer. 
• Under Origin: Business Transaction find Bank Charge Bearer. 
• Notice this setting is marked as Mandatory. 

1. Either remove the Bank Charges Paid By field value "Initiator" in the supplier master data and create a new outgoing bank transfer. This will allow the system to select the customized payment medium format XYZ automatically.
2. Or, if the Bank Charges Paid By field value "Initiator" must be maintained in the supplier master data, navigate to the bank master data. Under Payment Formats remove the standard payment method 44 - S.W.I.F.T. MT103 Payment. Then, create a new outgoing bank transfer to ensure the customized payment medium format XYZ is selected.

Refer to: a href="https://www.relevant-link-in.case.com" SAP Note 1707041 - Payment Approval Required For Manual Payments Even When No Approver Has Been Set /a

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