Please can u provide NEFT and RTGS Configuration

[Former Member]

FICO Module

Please can u provide NEFT and RTGS Configuration and DME

[Former Member · Accepted solution]

Hello Raja,

In order to effect RTGS and NEFT transfer as per RBI, customer need to provide following information to its banker.

1. Amount to be remitted
2. Remitting customer’s account number which is to be debited
3. Name of the beneficiary bank
4. Name of the beneficiary customer
5. Account number of the beneficiary customer
6. Sender to receiver information, if any
7. The IFSC Number of the receiving branch ( You can find IFSC (Indian Financial System code) codes in RBI site.

Depending on customer’s arrangement with bank, you can send the above information either through paper copy or through a DME file. Let us see what configuration steps are required for RTGS and NEFT payment.

Step 1 : Configure two new payment methods at country level.

Since there are thresh hold limit for RTGS and NEFT payment, if you need both payment functionalities, you need to create two payment methods for example N, R as shown below. These two payment methods are copy of payment method T. You can reach the configuration screen by following the menu path IMG > Financial Accounting > Accounts Receivable and Accounts Payable > Business Transactions > Outgoing Payments > Automatic Outgoing Payments > Payment Method/Bank Selection for Payment Program > Set Up Payment Methods per Country for Payment Transactions [ Transaction Code: FBZP]

Figure – 1: Payment Method Country

If you docuble click on the payment method, system will come up with screen shown below.

Figure – 2: Payment Method Country, Payment Method N.

Step 2 : Configure two new payment methods for the company code.

Since there are thresh hold limit for RTGS and NEFT payment, if you need both payment functionalities, you need to create two payment methods for example N, R as shown below. These two payment methods are copy of payment method T. You can reach the configuration screen by following the menu path IMG > Financial Accounting > Accounts Receivable and Accounts Payable > Business Transactions > Outgoing Payments > Automatic Outgoing Payments > Payment Method/Bank Selection for Payment Program > Set Up Payment Methods per Company Code for Payment Transactions [ Transaction Code: FBZP]

Figure – 3: Payment Method Company Code, Payment Method R.

Since there is monetary minimum thresh hold limit of INR 2,00,000.00 to initiate RTGS transfer, we set the minimum payment field to INR 2,00,000.00. System will not initiate RTGS transfer below ING 2,00,000.00. We have assigned payment accompany form “FPAYM_INT_DMEE”, assuming that for RTGS payment bank need a signed hard copy along with data file. I will tell you how to extract the data file later in this blog.

Similarly create another payment method for company code Y003 fro NEFT payment.

Figure – 4: Payment Method Company Code, Payment Method N.

Payment N has been configured for minimum payment INR 1.00 and maximum INR 1,99,9999.00, any payment above INR 1,99,9999.00 will be through RTGS.

Set up Bank Determination:

Now we will set up bank determination for both payment methods. You can reach this configuration steps by following menu path path IMG > Financial Accounting > Accounts Receivable and Accounts Payable > Business Transactions > Outgoing Payments > Automatic Outgoing Payments > Payment Method/Bank Selection for Payment Program > Set Up Bank Determination for Payment Transactions [ Transaction Code: FBZP].

Figure – 5: House Bank, Ranking Order.

Figure – 6: House Bank, Bank Account.

With this we have done with the configuration of RTGS and NEFT payment functionality.

What are master data settings is necessary in order to initiate NEFT and RTGS payment with in SAP?

In order transfer fund through RTGS or NEFT, we need to provide IFSC code and vendor account number either of the payment information transmission option (Electronic data transfer or Paper copy) to our banker. Hence we need to maintain these information for every vendors.

We need to maintain these information in the vendor master, general data segment – payment transaction tab as shown below

Figure – 7: Vendor Master, Bank Information.

With these configuration and master data maintenance you can initiate RTGS and NEFT payment. Enter two transactions one is below INR 1,99,9999 and another one above INR 1,99,9999. Once you have posted vendor invoice you can initiate automatic payment program to see how system behaves and what payment method system is using for the said payment. Figure below depicts payment run proposal, with the above configuration system has selected appropriate payment methods based on the thresh hold limit.

Execute payment run to generate payment document and clear vendor line items.

I hope this will work.

[Former Member · Accepted solution]

Thank you so much Himanshu Jain

[Former Member]

Hi Raja,

Please give rewards points