4/4/2024
Financial Operations
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Digital Payment Processing
Digital Payment Processes in Accounts Receivable
The processing of digital payments can be implemented using the SAP digital payments add-on, which connects the relevant
payment service providers (PSPs) to SAP S/4HANA. For further information on the SAP digital payments add-on, see SAP
digital payments add-on.
 Note
If you want to process digital payments with SAP S/4HANA using the SAP digital payments add-on you will need a license for
the SAP digital payments add-on in addition. For further information, please contact your SAP Account Executive.
SAP S/4HANA supports the following types of digital payment process:
Activities in Finance
Apps Used
Settlement
Schedule Accounts Receivable Jobs (Payment Card Settlement)
Automatic Clearing
Schedule General Ledger Jobs (Automatic Clearing)
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Activities in Finance
Apps Used
Reconciliation Using Digital Advices
Schedule Accounts Receivable Jobs (SAP Digital Payments: Advice
Processing)
Manual Clearing
Clear GL Accounts - Manual Clearing
View Data
Display Payment Card Data
Two-Step (Authorization & Capture) Payments
A two-step digital payment is so called because it includes an authorization step and a capture step. Payments of this
type are usually used when order and delivery are separated in time.
Consumers authorize payments when checking out in online stores, giving their payment card data to call center agents, or
ordering via mail order. This is the authorization step.
Once the business process is completed, such as by goods being despatched, the nal payment amounts are determined and
open items are posted on the Accounts Receivable - Digital Payments account.
You then perform the settlement using the Payment Card Settlement job within the Schedule Accounts Receivable Jobs app.
This job selects all authorized payments for which the associated transaction has been completed and sends them to the PSP
via the SAP digital payments add-on. This is the capture step and results in open items against the PSP on the account Bank
Accounts - Payment Service Provider - Clearing. Note that the journal entries are posted regardless of whether the
transmission to the PSP is successful or not.
If the PSP supports digital advice processing, you can then use automatic reconciliation. To do this, you use the SAP Digital
Payments: Advice Processing job within the Schedule Accounts Receivable Jobs app. In addition to con rmations of captured
payments, this job also returns additional transactions, such as fees, returns, or manual payments, which have so far not been
known to the SAP S/4HANA system and must now be recorded. Transactions that con rm captured payments are reconciled
using the periodic job Automatic Clearing in the Schedule General Ledger Jobs app.
The PSP pays out the funds to your real bank account. The payout is processed using your usual bank statement processing and
posted nally to the Bank Accounts - Payment Service Provider - Transfer account. The payments on this account generally
have to be cleared manually using the Clear GL Accounts - Manual Clearing app, because the PSPs often do not provide
sufficient reference information.
The posting logic for two-step payments is illustrated below:
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One-Step (Direct Capture) Payments
A one-step digital payment does not have anauthorization step. Payments of this type are also known as 'direct capture'
payments, and are often used when goods or services are delivered immediately, such as digital downloads.
Consumers execute payments directly when checking out in online stores or using company portals. This is the capture step.
The business processes are already completed as delivery has already taken place. The nal payment amounts are determined
and open items are posted against the PSP on the account Bank Accounts - Payment Service Provider - Clearing.
If the PSP supports digital advice processing, you can then use automatic reconciliation. To do this, you use the SAP Digital
Payments: Advice Processing job within the Schedule Accounts Receivable Jobs app. In addition to con rmations of captured
payments, this job also returns additional transactions, such as fees, returns, or manual payments, which have so far not been
known to the SAP S/4HANA system and must now be recorded. Transactions that con rm captured payments are reconciled
using the periodic job Automatic Clearing in the Schedule General Ledger Jobs app.
The PSP pays out the funds to your real bank account. The payout is processed using your usual bank statement processing and
posted nally to the Bank Accounts - Payment Service Provider - Transfer account. The payments on this account generally
have to be cleared manually using the Clear GL Accounts - Manual Clearing app, because the PSPs often do not provide
sufficient reference information.
The posting logic for one-step payments is illustrated below:
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External Invoice Payments
Payments of this type are initiated outside SAP S/4HANA, for example a payment card payment created in the PSP's
dashboard by a company employee during a telephone conversation with a payer, or a digital payment made using an online
payment system.
This type of payment is only supported if the PSP supports digital advice processing. Automatic reconciliation transfers the
payments to the SAP S/4HANA system and posts them. To do this, you use the SAP Digital Payments: Advice Processing job
within the Schedule Accounts Receivable Jobs app. Based on the reference data, the payment is posted as a liability on the
relevant PSP transfer account against the customer account and the corresponding invoice (open item) is cleared. Fees are
also considered in this posting.
The PSP pays out the funds to your real bank account. The payout is processed using your usual bank statement processing and
posted nally to the Bank Accounts - Payment Service Provider - Transfer account. The payments on this account generally
have to be cleared manually using the Clear GL Accounts - Manual Clearing app, because the PSPs often do not provide
sufficient reference information.
The posting logic for external invoice payments is illustrated below:
Refunding Payment Card Payments
Under certain circumstances, you may want to make full or partial refunds of payment card payments made to you using SAP
S/4HANA Cloud for Customer Payments or the SAP Digital Payments: Payment Card Authorizations for Customer Line Items
job in the Schedule Accounts Receivable Jobs app. To do this, you need to initiate the refund using the Refund Payment Card
Payments app and complete it using the Payment Card Settlement job in the Schedule Accounts Receivable Jobs app.
The posting logic for refunds is illustrated below using a partial refund:
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Monitoring Payment Card Payments
You can display digital payment transactions of all types using the app Display Payment Card Data.
Related Information
Digital Payment Processes: Error Handling
Digital Payment Processes: Error Handling
Errors of different types can occur in the processing of digital payments. Various apps are available to assist when errors occur.
Submission of Settlement to PSP Fails
The status and application log of the Payment Card Settlement job show whether or not the process was successful. If a
technical error occurred in the transmission, you can use the Repeat Payment Card Settlement job to retry the process. No
additional postings are required in this case.
Capture of Authorized Payment Fails
If the capture of an authorized payment is rejected by the PSP, for example because the authorization has expired, the payment
is not made by your customer so the liability must be reopened. You can use the application log of the settlement run and the
Display Payment Card Data app to analyze the payment authorization, and then the Reset Cleared Items - Payment Cards app
to create postings to invalidate the authorized payment and reopen the item on the customer's account. The corrective
postings are illustrated below:
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Captured Payment Returned
If a payment that has been successfully captured is rejected by the payer, the capture is returned and reported in the digital
payment advice. You see the return in the Reprocess Bank Statement Items app and can also use the Display Payment Card
Data app for further analysis. You then use the Reset Cleared Items - Payment Cards app to create postings to invalidate the
authorized payment and create a new item on the customer's account. The returned item out of the advice and the item from
the Reset Cleared Items - Payment Cards app must also be cleared manually using the Clear GL Accounts - Manual Clearing
app. The corrective postings are illustrated below:
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Handling Merchants Using the SAP Digital Payments Add-On
With Accounts Receivable
If you use SAP S/4HANA in combination with the SAP digital payments add-on for your digital payments, you will have accounts
at your payment service providers (PSPs). You can de ne the usage of these accounts according to your business needs (one
for each of your online stores, one for each currency, etc.). The account numbers at the PSP are known as 'merchant IDs'.
Each digital payment transaction is linked to one speci c merchant ID. The SAP digital payments add-on determines which PSP
and merchant ID are used for a particular transaction based on rules you de ne as part of the con guration process. The
relevant criteria for determining the PSP and merchant ID according to these rules are passed by SAP S/4HANA in the initial
step of the process, such as the card registration, payment authorization, or payment initiation. Once determined, the PSP and
merchant ID remain the same for the rest of the process.
If desired, you can also re ect the PSP merchant ID structure in your SAP S/4HANA Financial Accounting. To facilitate this, you
can use the SAP digital payments add-on to aggregate multiple merchant IDs to form a 'merchant ID alias'. Each merchant ID
alias is made up of a set of PSP and merchant ID pairings. Within SAP S/4HANA, a merchant ID alias is represented as a virtual
bank account.
Merchant ID Aliases: Examples
You can de ne your merchant ID aliases in many different ways. Here are some examples based on having two PSPs. PSP1 has
two USD merchant IDs, and PSP2 has one USD merchant ID and one EUR merchant ID.
 Note
It is not possible to assign merchant IDs of different currencies to the same merchant ID alias.
Maximum Aggregation
In this case, you group all USD merchant IDs into one merchant ID alias and all EUR merchant IDs (in the example only one) into
one merchant ID alias. You could maybe name these merchant ID aliases ALLPSPUSD (red box) and ALLPSPEUR (blue box).
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Aggregation By PSP
In this case, you group all merchant IDs of an individual PSP (and of the same currency) into one merchant ID alias. You could
maybe name these merchant ID aliases PSP1USD (red box), PSP2USD (green box), and PSP2EUR (blue box).
Aggregation By Online Store
In this case, you group the merchant IDs that belong to an individual online store (and are of the same currency) into one
merchant ID alias. You could maybe name these merchant ID aliases STORE1USD (red box), STORE2USD (green box), and
STORE2EUR (blue box).
No Aggregation
In this case, each merchant ID gets its own merchant ID alias. You could maybe name these merchant ID aliases PSP1USD1 (red
box), PSP1USD2 (brown box), PSP2USD (green box), and PSP2EUR (blue box).
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De ning Merchant ID Aliases in SAP S/4HANA
A merchant ID alias is represented as an account of a virtual bank in SAP S/4HANA. The alias has a maximum length of 15
alphanumeric characters (no special characters).
1. Create a virtual bank and house banks.
a. In the Manage Banks app, choose Create Bank.
b. Choose the Bank Country and enter a Bank Key that is not used by a real bank.
c. Enter a Name of your choice.
d. Choose Payment Service Provider as the Bank Category.
e. Save your new virtual bank.
f. Choose Edit.
g. Under House Banks, create a house bank for each company that is involved with payment processing using the
SAP digital payments add-on. For each company, you must at least choose the Company Code and enter a name
in the House Bank eld. Ensure that you save each new house bank.
2. Create virtual house bank accounts.
You will require one virtual house bank account for each merchant ID alias so go through the following steps for each
merchant ID alias. Use the merchant ID aliases as the account numbers.
a. In the Manage Bank Accounts app, create a virtual house bank account.
b. Under Bank Relationship, enter CAMT053 as Transaction Type. This represents the XML format CAMT.053,
which is required for processing digital payment advices using electronic bank statements in Accounts Receivable.
c. Under House Bank Account Connectivity, make the settings for the account. Ensure you choose the G/L account
designated for payment service providers in the chart of accounts. All merchant ID alias accounts must use the
same G/L account.
Note that you can assign a virtual house bank account directly to a speci c PSP.
Payment Advice Processing
Digital payment advices provide information on transactions processed by PSPs. This data is used for automatic reconciliation
purposes.
Requesting Digital Payment Advices
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1. In the Schedule Accounts Receivable Jobs app, create a new job using the job template SAP Digital Payments: Advice
Processing.
2. Under General Selections, enter the data of the virtual bank.
3. Under Further Selections, choose the relevant digital payment method (credit card or external payment) at Digital
Payment Method. You can also specify a time frame if you like.
4. Under Payment Service Provider Selections, you can restrict the process to speci c PSPs and merchant ID aliases.
If you leave these elds empty, the advice information will be fetched from the SAP digital payments add-on for all
merchant ID aliases with the speci ed bank and payment method.
If a merchant alias has a speci c PSP assigned, only that PSP is considered.
The transactions covered by the payment advices are usually processed only once within Accounts Receivable. If you
want transactions to be processed a second time, select the Reconciliation checkbox. Note that selecting the
Reconciliation checkbox could cause inconsistencies in Financial Accounting.
Con guration
To access the relevant con guration within Customizing, choose
Transactions
Payment Transactions
Financial Accounting
Electronic Bank Statement
Bank Accounting
Business
Make Global Settings for Electronic Bank Statement .
The following account symbols are used:
Payment card payments
DPCLEAR
DPTRANSFER
External payments
DPEXTIN
DPEXTOUT
DPEXTCLEAR
DPEXTCROSS
DPEXTREFCLEAR
PSP Charges
BANKFEES
Posting Logic
Below you will nd some examples of posting schemes for credit card payments and external payments. These include postings
made for digital payment advices.
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Related Information
SAP digital payments add-on
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