F110 Outgoing payments to a vendor

F110- Automatic payment runs

Business scenario– F110 is used to pay multiple invoices at one time. This transaction code is typically run a few times a week.

This will clear all the open invoices based on the criteria specified in the payment run.

Prerequisites- F110 requires a lot of configuration steps, you can read those in the FICO configuration steps document here. 

Menu path

Accounting-Financial Accounting-Accounts Payable- Periodic Processing-F110

Or Access this directly by using the tcode F110.

1-Run Date– Enter today’s date in the payment run Date

2-Identification- Enter a unique identifier for the payment run. This could be for e.g. your initials and the date.

Next- Click on the parameters tab

1– Posting Date– Enter the posting date for the payment run. This will mostly be “today’s date”

2- Documents Entered up to – This is the date up to which the program picks up documents. E.g. if a document was created on 2/14/2018, but you enter 2/13/2018 here, that document won’t be picked up. This is mostly “Today’s date” as well.

3- Company Code– Enter the company codes for which you will be making payments. Enter multiple company codes with a comma. E.g. 1000, 630, 500

4- Payment Methods- Enter the payment methods that need to be picked up in this payment run. Each invoice will have a payment method in its master data. E.g. C for check Z for wires etc. Enter all the payment methods without a comma e.g. CZAGF.

5- Next Payment Date– The next payment date is the date on which you will be running F110 again. This helps in determining if an invoice should be paid now or we should hold off on its payment.

E.g. if an invoice is due on 3/15/2018 and the next payment date is 3/20/2018, the system will make the payment, but if next payment date is 3/10/2018, the invoice is not paid and it will be paid in the next payment run.

This way we can keep the funds with us for longer without losing any discounts.

6- Vendor –  Enter the vendor number(s) for which you need to be making payments. You can enter a range of vendors over here.

Free selection tab- Next, we have the free selection tab.

This is where we can restrict the payment or only pay based on certain criteria.

E.g. if we only want to pay certain document number, we can enter that in the free selection screen.

There are many other fields that can be used in the free selection tab.

Clic

For this example, I am not including any field in the free selection tab.

Next click on the Additional log Tab

Select the three boxes shown below. These boxes just show you additional info for the payment runs. This helps in identifying errors.

Vendor- enter the same vendor numbers that you entered on the parameters screen.

Then click on the printout/data medium tab. Get info from your IT team on what to enter here.

You can then click on the green arrow for going back and you will get a prompt to save.

Click yes

A message ” Parameters have been entered” appears on the left of the screen.

Next click on the Proposal Icon

You will get a popup box. Click on Start Immediately and click on the green arrow to start the Proposal.

On the left of the screen, you will see a yellow icon which tells you that the proposal is running.

Wait for a minute for the proposal to finish running.

You can also click on the refresh icon to see if the proposal gets created.

You will see the sign change to green with the message, “Payment proposal has been created”

You can now change or display the Proposal.

This will show you which invoices are picked up by the proposal and which invoices will not be paid.

Everything doesn’t have to be in green, but check if there are any invoices that you expected to be picked up, but are not picked up.

We entered the payment method as Z, so the other invoices that do not have a payment method did not get picked up.

Click on the green arrow back to go back to the main screen.

Payment Run– Next, we have to click on payment run and click on start immediately and click on the green arrow.

You will then see a message on the left of the screen which shows that the payment run is running.

Click on the refresh icon

Wait for the status to change to green. Once it has changed to green. The invoices would have been paid and the payment documents have been created.

Click on the Payment icon to view details.

This will show the payment document number. This screen is also very helpful in identifying any errors.

Then click on printout.

This will actually print out the checks.

Change the job name and click on start immediately.

You will see a message at the bottom of the screen.

Note- If you are creating an ACH or a wire, the steps will differ slightly.

Check with your IT team if you need to be checking the box for creating a payment medium.