A. Initiation

I want to share my understanding of the many fund transfer scenarios that could occur between the company bank accounts in this blog article. After reading the blog post in its entirety, you will understand how a bank transfer works within a company code, between company codes (if they belong to the same country), and between business codes (Co.Codes belongs to multiple countries). I’m assuming that you are familiar with how to build an automatic payment programme (FBZP) setup for your home bank.

B. Overview of B2B Process:

Transferring money from one bank to another is known as a “bank to bank transfer.” Additionally known as book transfer. We offer a variety of transfers.

  • Internal transfers
  • Transfer Between Companies

Internal Transfer:

The term “intra-company transfer” refers to the transfer of money between accounts at the same house bank or between two House banks with the same Company code. In general, fund transfers are necessary to meet the needs for daily cash and liquidity. Money cannot be transferred between different currencies.

Transfer Between Companies:

Inter Company Transfer is the act of moving money between two company codes’ respective bank accounts. The two company codes are either from the same country or from several. When transferring money from one bank to another using company codes from different nations, there is an additional configuration process.

A brief overview of the setup used in this paper is what I’d want to do. I’ll utilise bank G/Ls: Cross company code clearing account 100109, main bank 200++0, outgoing bank 200++1, and incoming bank 200++2. Technically, it is a clearing account.

I’ll demonstrate the following scenarios for you in this blog post.

  1. CITI Bank transfers money to SBI Bank (using the internal company code “PIL”).
  2. HSBC Bank to CITI Bank ( between Company codes- PIL to PIL2)
  3. JPM Bank to CITI Bank (Between Company codes and Between country – PIL to PCL)

Important Data Structure (KDS)

Impact of Business Process Scenarios on Accounting

Note:

Prior to performing the B2B Configuration and End-user stages, please make sure to configure the House bank setup, Automatic payment programme (APP) configuration (FBZP), Inter-company configuration (OBYA), and Create Bank G/L accounts (FS00) for your company codes.

 

B. Configuration 

1) Establish payment request number ranges:

Define number ranges for payment requests in SPRO – SAP Reference IMG – Financial accounting – Bank accounting – Business Transactions -Payment Transactions

Number ranges that SAP has already predefined. If for some reason it is not, you can make up your own number ranges.

2) Establish clearing accounts for the receiving bank for the account transfer

SPRO-Financial Accounting-Bank Accounting-Business Transactions-Payment Requests-Define clearing accounts for Receiving Bank for Account Transfer

To define the receiving bank G/L accounts, click on new Entries. I’ve established the parameters for each of the three cases.

Enter the codes for your business, the House Banks (Receiving banks), the payment method, the currency, the account id, and the clearing account (the Receiving bank’s sub account), then hit Save.

3) Specify clearing accounts for international bank transfers.

Define clearing accounts for international bank account transfers in SPRO – SAP Reference IMG – Financial Accounting – Bank Accounting – Business Transactions -Payment Transactions – Payment Request

Select “new entries”

Save your changes after entering the Technical clearing account and Cross Company Code clearing account in relation to your sending and paying codes.

Note:

It has no bearing on any banks. This step is only necessary if you are moving money between business codes that are located in two different nations, such as India and the USA.

4) Account determination or clearing accounts should be defined for company code.

Financial accounting, bank accounting, business transactions, payment transactions, payment requests, payment handling, identification of bank clearing accounts, and definition of account determination are all covered by SPRO’s SAP Reference IMG.

Enter the Paying Company Code and then press Enter. 

Select “new entries” Input the account ID, payment method, paying company code, and bank subaccount. Next, save.

5) Assign the default profit centre for bank general ledger accounts – FAGL3KEH:

Choose your company code, then press enter. If you have set it as mandatory and activated the document splitting features by profit centre, it is required.

C. End-User Actions

1) Repetitive code groups should be created (T.Code-FIRPGR).

Select “new entries”

Under Repetitive code group, type your own name, the description for that, and save.

Repetitive code group is used to group the repetitive codes and is used during the B2B transfer process to decrease the repetitive codes information, while it is not required.

2) Produce Repeatable Code (T.Code-OT81):

Banking – Master data – Repetitive codes – Financial accounting (OT81):

Click the Create button after entering the Paying Company Code, House Bank, and Account ID information.

Select the Bank radio button, then press Enter.

Repetitive code, Target or Receiving company code, Bank information, payment type, currency, and Reference text should all be entered before saving.

Note: The Accounting document’s reference text will be updated.

Repetitive code “PIL-10011-PIL-20011” is selected, the back arrow is clicked, and the Release icon is clicked (Green flag).

Red colour of the release status changes to yellow after saving.

The final approver will click the green save button after selecting Repetitive code and Release.

Green instead of yellow is now the release status. Code that repeats itself cannot be used unless it is green.

Click the Groups button after choosing your Repetitive code.

Double-click on the Respective Code Assignment folder after selecting the Respective Repetitive group (PIL).

Enter after clicking new entries. Your company code, house bank (which is related to sending company code), and repetitive code. Type in and save.

To represent the various scenarios, I developed the repetitive codes listed below. For the repeating codes below, the aforementioned procedure will be continued.

3. Establish a Bank to Bank Transfer (FRFT B):

Banks, Outgoing Payments with Respective Codes, Carry Forward Bank Accounts, Financial Accounting

A particular set of codes that repeat If you’ve formed a repetitive code group, enter the house bank and the paying or sending company code before pressing enter.

It displays Repetitive Relevant Codes. Click “Enter” after entering the amount paid for your repetitive code (PIL-10011-PIL-20010).

Press the Create Payment Request button.

Program displays the pop-up window. The system will generate the number xxxx for the payment request before you enter.

The open payment request has the payment request number displayed.

4) Accept FRFT-B (Bank to Bank Transfer):

Banks, Outgoing Payments with Respective Codes, Carry Forward Bank Accounts, Financial Accounting

The payment request will be approved by approver. Enter the CO code, also known as the Group of Repetitive Codes. It displays each active payment request.

Click “Pay” after selecting an open payment request.

It displays a pop-up window informing the user that a proposal and payment request for xxxx have both been prepared. T. code F111 can be used to confirm it.

In the command box, type T-code F111.

5) Examine the FB03 Accounting Documents:

Conclusion:

I’ve explained various scenarios involving fund transfers in this blog post. I sincerely hope this blog post is helpful. You now have a solid understanding of both intra- and inter-company bank transfers. Please don’t hesitate to add your thoughts. I sincerely appreciate your time.