What is the purpose of the payment block indicator in SAP FICO Accounts payable ?

 The Payment block in SAP FICO Accounts Payable is used to temporarily prevent the payment specific invoices or vendors.


It allows for manual review and approval of payment before processing.

Open Line item report > open specific invoices > edit mode enabled > assigne "pmnt block" indicator under additional data section

If we want to apply payment in which vendor is not paid entirely, then we will apply payment block 

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Defining Payment Block Reasons

When defining reasons for blocking payments, there are a few specifications you need to consider. You can specify whether payment blocks can be changed in payment proposals or during manual payment. You can also specify whether documents defined with block keys can be cleared during manual payment processing or if changes are not allowed.

The reasons you define in this exercise allow you to differentiate why invoices are not to be paid. Standard block reasons are supplied by SAP, which you can use if you do not want to define your own.

Payment block reasons are valid for all company codes. This means all company codes within the client or in the system can use the payment block reasons in the system without having to define payment block reasons that are company code specific. When customizing payment block reasons, you need to update the following fields:

Block Ind.: This is a block indicator key that is defined with a one-digit character key. This key contains reasons for blocking payments. It’s entered in a document to block an invoice from being paid for a specified reason.

Description: Enter a short description stating why this payment is being blocked.

Block Indicators: Allows you to specify how you want the payment block reason you defined to function. You have three options to choose from:

    Change in Payment Proposal: When you want changes to be carried out during the payment proposal. It is possible to remove a payment block when processing the payment proposal, but when you set this proposal, changes cannot be made during payment proposal processing.

    Manual Payment Block: If you do not want documents assigned with a block key to be cleared during manual payment clearing, then choose this option.

    Not Changeable: Changes cannot be made during payment proposal processing or during manual payment.

This step allows us to define the reason for blocking invoice(s) for payment. Standard block reasons are supplied which you can use. It is also possible to define additional block reasons if there is any need for it.

Note S since payment block reasons are valid for all company code, you can use block reasons already defined in the system.

Now let’s define a payment block reason. Follow this menu path to go to the screen where you will define payment block reasons: IMG: Financial Accounting ➤ Account Receivable and Accounts Payable ➤ Business Transaction ➤ Outgoing Payments ➤ Outgoing Payments Global Settings ➤ Payment Block Reasons ➤ Define Payment Block Reasons

The Change View Payment Block Reasons Overview screen is displayed, click New Entries at the top of the screen and the New Entries: overview of added Entries screen is displayed (Figure 14-22).

Figure 14-22. Defining payment block reasons

Update the following fields:

Block Ind.: Enter your payment block reason key in this field. This is usually defined using a single-digit character. In this exercise, we used K as our payment block reason key for illustration purposes. This key is a freely definable payment block reason key. You can use any key of your choice.

Description: Enter a meaningful short statement describing your payment block reason. As an example, we used Payment Block C900 as our payment block reason. You can use any meaningful description of your choice.

Change in Pmnt Prop.: When you select the change in payment proposal checkbox, the payment block cannot be removed during an automatic payment program run.

Save your block reason.

First go to t-code = ob27

Go to FBL1N
select open item
double click on details on each line item and update the payment block.

Payment block can be applied at vendor master data level.
Go to t-code = BP and select display BP role "FLVN00" and select company code"9000" and then go to vendor paymemtn transaction tab.
go to automatic paymnt transaction > select payment block.

Payment block can be applied at term of payment level.








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