Configuration of Bank Chain in SAP

This page is the continuation of the article “Bank Chain Setup in SAP“. Here, we will see the detailed configuration of Bank Chain in SAP. In addition, we will also discuss the SAP Bank Chain tables and how to include the Intermediary bank details in the DME file.

Configuring Bank Chain in SAP

1. Define Scenario

TCode and Menu path: SPRO > SAP Customizing Implementation Guide > Financial Accounting > Bank Accounting> Bank Chain > Define Scenario
Direct Table Maintenance:
Customizing Object: VC_TBCHO
Transaction: SM30

Bank Chain Configuration

This is the first step in the configuration of Bank Chain process. Here, we will describe the criteria which will be used during an Automatic Payment run to identify a bank chain. In other words, the scenario determines how the bank chain will be sought.

A scenario has two types of searches: General and recipient-specific.

  • General search is a type of bank-chain search which does not depend on a business partner (customer and vendor) bank detail.
  • Recipient-specific search is a type of bank-chain search which depends on a business-partner bank detail.
general and recipient-specific search in SAP Bank Chain process

SAP Standard Scenario: SAP contains a number of standard scenarios, as shown in the above image. It is not advisable to make changes to the standard scenarios.

If, however, there is a need to make minor changes, we should copy the standard scenario and adjust the copy to meet our requirement(s). We can define our own scenario in a separate name range starting with Y, Z or 9.

How to create a new Scenario?
In order to create a new scenario, we have to follow the following steps:

  • Choose Edit -> New entries.
  • Enter the data necessary for defining a scenario:
    1. An ID for the scenario, say Y003.
    2. A description of the scenario.
  • Select Search
    1. Gen.Search: Select this option, if payments to be made are not dependent on the partner’s bank details i.e. the search is general. We will discuss on “General Bank Chain” later under Create General Bank Chain step.
    2. Rec.Search: Select this option, if the payments are to be dependent on the recipient bank details.

If both search options are checked then system first runs a search for a recipient-specific (that is, partner-dependent) bank chain, and then for a general bank chain.

Please note that creating a scenario can slow the performance considerably because SAP has created secondary indexes only for the standard scenarios. And when we create a new scenario, secondary indexes are not created automatically for them. And to create indexes, we should contact SAP.

So far we have covered the importance of Searches and how to create a scenario if at all it is required. Next, we will look into Scenario Characteristics.

So, what is Scenario Characteristics?
Scenario Characteristics describes the ranking order for selecting an Intermediary bank based on various combination of “Sender Bank”, “Rec. Bank Country”, “Rec. Bank” and “Country”. The ranking order is applicable only if “Rec Search” checkbox is selected.

The various combination of “Sender Bank”, “Rec. Bank Country”, “Rec. Bank” and “Country” is used during the creation of Intermediary Bank details for Business Partner Bank.

Scenario Characteristics in Bank Chain

Follow the following steps to maintain the Scenario Characteristic:

Select the defined scenario and choose Scenario characteristics by double-clicking. Next, you will be moved to the following screen.

2. Activate Bank Chain

TCode and IMG Path: SPRO > SAP Customizing Implementation Guide > Financial Accounting > Bank Accounting> Bank Chain > Activate Bank Chain
Direct Table Maintenance:
Customizing Object: TVCHAINCO
Transaction: SM30

In this activity, we determine a scenario which will be used during Payment Run to determine the Bank Chain. In other words, we activate the bank chain scenario here. Here, we decided whether to use an existing scenario to determine the bank chain, or whether to use a new scenario.

Activate bank chain

Enter the required scenario (such as 0003) for determining the bank chain during an Automatic payment run.

3. Create a General Bank Chain

Under the General Bank Chain, we define a bank chain where the payments can be processed via a general bank chain and are not dependent on the business partner’s bank details. This step is required if we have selected the checkbox “Gen. Search” in Define Scenario step.

General bank Chain creation has two steps, and these two steps are linked to each other:

  1. Bank Chains, with “Bank chain ID” which has the Correspondence or Intermediary bank details like the Bank Country and the Bank Key.
  2. Assignment: It defines the scenarios in which a specific Bank Chain ID will be called.

How to create a General Bank Chain?

TCode and IMG Path: SPRO > SAP Customizing Implementation Guide > Financial Accounting > Bank Accounting> Bank Chain > Create General Bank Chain
Direct Table Maintenance:
Customizing Object: VC_TBCH1
Transaction: SM30

General Bank Chain | Bank Chain Configuration in SAP

Under Bank Chain, we maintain the following details:

  • Bank Chian ID: We specify an ID to the bank chain, Correspondent Bank or Intermediary Bank. This is used in “Assignment” steps to define which bank chain should be called in which scenario. For example, Bank Chain ID “ID001” should be called when we are making payment in RUB Currency, and the Sender Country is IN, the Sender Bank Key is “SBIPUNE” and the recipient bank country is RU.
  • No: Number specifies the order of Intermediary Bank in Bank China. At max, SAP permits 3 intermediary banks in a bank chain.
  • Typ: Type defined the nature of the bank, that is, the bank in the discussion is a Correspondence Bank of Intermediary Bank.
  • Corr. Ctry: Corresponding Country is the Country in which the intermediary bank is located.
  • Corr: Bank Key: This is the Bank Key of the intermediary bank. This data is created in SAP Tcode FI01/ FI02/ FI03.
  • Bank Acct: Bank Account of the intermediary bank
  • IBAN: IBAN number of the intermediary bank

Assignment

General Bank Chain Assignment | Bank Chain Configuration in SAP

Under Assignment, we maintain the condition in which the Bank Chain or intermediary bank is called during the payment run.

  • Crcy: It stores the Currency key. During a Payment Run, this currency key is compared with the invoice currency key. And if all the other parameters in Assignment row is matched the bank chain ID is select and used.
  • Ctry: This describes the Country of Sender Bank.
  • Bank Key: Bank Key of the Sender
  • Ctry: Country in which the bank of the Receiver of the payment is located
  • Bank Key: Bank Key of the Receiver of the payment.
  • PmtMthSup: Payment Method Supplement used in the invoice of the payment.
  • BankChn ID: “Bank Chin ID” created under Bank Chains. This bank chain is selected of the details in Payment matches with the above fields.
    For example, if we are executing a payment for EUR currency, and the Sender Bank is in IN country with bank key “SBIPUNE” and the receiver bank country is in DE, then in such a case, the Bank Chain ID ID002 will be selected. This is as per the details in the above screenshots.

With this, we are done with the Configuration of the Bank Chains. Next, we will see how to determine the Bank Chain based on Business Partners details.

4. Defining Bank Chains for Customers and Vendors

The purpose of this activity is to specify a bank chain for a given customer or vendor.

Prerequisites: We have already defined the customer or vendor Master Data with their Bank Accounts).

How to define Bank Chains for Customers and Vendors?

SAP MENU, choose Accounting > Financial accounting > Bank
House banks > Edit | to define Bank Chains for House Banks.
TCode for Create/Edit: FIBHU
TCode for Display: FIBHS
Bank to Bank Transfer
TCode for Create/Edit: FIBTS
TCode for Display: FIBTU
Business partners > Edit | to define Bank Chains for Customers and Vendors.
TCode for Create/Edit: FIBPS
TCode for Display: FIBPU

Here we will have 3 options:

  1. House banks.
    Here we can define Bank Chains for House Banks.
  2. Bank to Bank Transfer.
  3. Business partners.
    Here we can define Bank Chains for Customers and Vendors
Bank Chain for customer and vendor

In the next post, we will go through the steps of defining a Bank Chains for a given Customers and Vendors.