## (DEU) Working With Other German Functionality

This chapter provides overviews of vouchers for Z1 payments and encashments, and discusses how to:

- Process Z1 payments.

- Work with the Z5a Sheet 2 report.

### Understanding Vouchers for Z1 Payments for Germany

Specify the Create A/P Bank Diskette - Germany program (R04572G5) as the payment instrument for vouchers for foreign payments. Payment instruments are set up using the Payment Instrument Defaults program (P0417). The payment instrument can be entered at the time of voucher entry, the system might use a default value from the supplier master, or it can be changed by using speed release before the payment group is created.

In addition, each pay item must include detail about the purchase. The system uses the detail information to determine if record type W is used with the detail record (T) in the Z1 output file. This information is essential for reporting to the Bundesbank (German Federal Bank). The system creates a W record if the voucher (and, therefore, the payment) is related to services transactions or capital movements.

You must enter W from UDC 00/HC in the Payment Handling Code field (CRC) for each pay item. The system creates a W record only if the payment handling code is W.

Note. You should enter W when you enter the voucher. However, the payment handling code can be added or changed in the speed release program before the payment group is created.

### Understanding Encashments for Germany

Encashment, a common business practice in Germany, is a process by which a third-party receives payments from the customers of a business and then disburses the payment to the business. You can process encashment by using these methods:

Parent/Child Method

When you use the parent/child method to process encashments, a parent company processes all the receipts for its child companies. To use the parent/child encashment method, you must specify the number of the parent company or the special payee for each customer that you set up.

Process parent/child encashment invoices as you would process normal cash receipts. You can use the Parent Number or Factor/Special Payee fields on the Customer Ledger Inquiry form to select only the invoices that the parent company is going to pay.

Factoring Method

When you use the factoring method to process encashments, customers remit the payment for their invoices to an encashment company, which then processes the payments and invoices. You receive the payment for the invoices, minus a predetermined commission, from the encashment company.

To process encashments using the factoring method, you write off the receipts that you know will be paid by the encashment company using the receipts entry programs.

See Understanding Invoice Match with Write-Off (TI Codes 10 and 15).

You must set up a reason code (user defined code 03/AR) and a general ledger account for the receipts that you plan to write off for encashment. The reason code that you associate with the receipts determines which general ledger account that the system debits when you post the receipts.

You set up the reason codes in the automatic accounting instructions (AAIs). For example, you set up AAI item RAxx (where xx is the two-character reason code) to associate the reason codes to the general ledger accounts.

### Processing Z1 Payments for Germany

This section provides an overview of processing Z1 payments, lists prerequisites, and discusses how to:

- Modify information at the payment group level.

- Modify information at the payment detail level.

#### Understanding Z1 Payments

When issuing a foreign payment, German companies are required to submit a paper or electronic form that provides information to the Bundesbank (German Federal Bank) for statistical purposes. The electronic form (form Z1) must be accompanied by an attachment report (form Z4).

The A/P Payments - Z1 Diskette format (R04572G5) provides a means to create foreign payments and the corresponding electronic form.

Z1 processing produces a specific foreign payment output file with the following records:

- Q record: Header information.

- T record: Detail payment information.

- W record: Detail report information for service transactions or capital movements (to be reported to the Bundesbank).

- Z record: Trailer information.

  Note. The Z1 output file does not include the V record. You cannot create automatic payments that relate to merchant trade because this information is related to the V record. If a payment is created for such purposes, you must write out the payment manually on a Z1 form.

Z1 processing uses the following tables, in addition to the standard AP payment processing tables, such as F04571, F04572, and F04573:

Table | Descriptions
F74030G (Germany-Bank Transit Number Master Addtl Information) | This table holds additional bank account information for each supplier's bank account. Each address book record can have only one record in the F74030G table.
F7404572 (Detail Payment Instructions for German Payments) | This table holds the same information as the F74030G table, except that it is used to enter or update bank information at the payment control group level.
F7404573 (Detail Payment Instructions EXT. for German Payments) | This table holds the same information as the F7404572 table, except that it is used to enter or update bank information at the pay item level.

Creating Payment Groups for Z1 Payments

Each time that you run the Create Payment Control Groups program (R04570) for Germany, the system calls the German country server (X045704DE). The country server creates a new record in the F7404572 table for each pay item. The record in table F7404572 is an exact copy of the equivalent record in the F74030G table.

Note. The Create Payment Control Group program does not enable you to combine multiple currencies.

Special considerations exist when you use the Work With Payment Groups program (P04571) in Germany.

Before using the program, you should set the processing options as follows:

- Enter version XJDE0001 in the Print Program Version processing option.

- When using the Z1 format for foreign payments, enter 2 in the Payment Control Group Output processing option on the Print tab. This action creates one file for all control groups. In addition, the system creates one file for each bank account and currency.

Modifying Information in a Payment Group

After the group is created (but before it is written), the additional bank information can be changed for each individual payment group or pay item. To change the detail payment instructions for payments, you must access the payment group using Work With Payment Groups program.

The Work with Payment Group program provides the ability to display group or detailed payment instructions using the Detail Payment Instructions - German (P744572) and the A/P Payment Detail Extension File - Z1 Format (P744573) programs. The default bank account information for German foreign payments is displayed upon inquiry. The F74030G table provides the supplier's group and detail information. The information can be modified only before the payment is written. You can change any single code or all codes.

Writing Payment Groups for Z1 Payments

To combine two or more payment groups into one payment file to be sent to the bank, you need to perform the following steps when writing the group:

- Set the Payment Control Group Output processing option on the Print tab of the Work With Payment Groups program to 1.

  This processing option enables you to write several groups into one file while separating the groups by the bank account number.

- Because the system writes all of the groups simultaneously, select all of the groups in the detail area and then select Write from the Row menu.

  Important! If groups are written simultaneously, take special care to ensure that the groups are not reset or undone separately. It is recommended that immediately after writing groups, you review and then update the groups together to ensure that no vouchers are paid twice.

After you update, verify, or correct all of the details, you write the payment groups that create the Z1 file. The Z1 file is created only if the Create A/P Bank Diskette - Germany program (P04572G2) is specified as the payment instrument.

Key Notes Regarding the Fields for the Z1 Format

Consider these fields when processing payments using the Z1 format:

- Q Record

  - Field 9

    This field indicates whether the file includes statistical information to send to the Federal Bank. This field is set to J if a W record exists. Otherwise, it shows an N.

  - Fields 10 and 11

    You must indicate the Regional Centre Bank area code for the Create A/P Bank Diskette - Germany program (R04572G5). Additionally, you must indicate the Principal's Company code and Principal's Industrial code. This processing option is mandatory because field Q9 is equal to J. If the processing option is blank, then the Bundesbank (German Federal Bank) rejects the file.

- T Record

  - Field 8: SWIFT Address/BLZ

    This field contains either the SWIFT address or the BLZ code of the beneficiary's bank. You must enter one of these values, or the Bundesbank does not accept the file. If the SWIFT or BLZ code does not exist for the supplier, it is recommended that you submit the Z1 foreign payment format using a paper copy. You must complete this field in the F0030 table or the bank will reject the file.

  - Fields 16 through 19: Instruction Code 1 – 4

    The system completes these fields with the values that you enter for Instruction Codes 1 through 4 on the German Bank Account / Additional Information form in the Bank Account Cross Reference - Germany (P74030G) program, unless the value in Field 22 (Label to type of Payment) is 13. If the value in Field 22 is 13, the system completes fields 16 through 19 with 0 (zero).

  - Field 20: Additional Instruction Code Information.

    This field enables you to provide additional information for the instruction codes. You can enter this information in the Bank Account Cross Reference - Germany (P74030G) program.

  - Field 21: Cost Settlement Code

    This field contains the cost settlement code. You can enter this information using the Cost Settlement Code UDC (74/28) in the Bank Account Cross Reference - Germany program.

  - Field 22: Label for type of Payment

    This field contains the label for type of payment. You can enter this information using the Label for Payment UDC (74/29) in the Bank Account Cross Reference - Germany program.

  - Field 23 - Additional Instruction to Principal's Bank

    This field enables you to add instructions to the principal's bank account. You can enter this information in the Bank Account Cross Reference - Germany program.

  - Field 24: Contact Name and Telephone Number

    This field enables you to add the contact name and telephone number of the person to contact at the principal's company if the paying bank has questions that are related to the payment order. You can enter this information in the Bank Account Cross Reference - Germany program.

  - Field 25: Reporting Code

    This field enables you to indicate whether to report the contents of the T record to the Federal Bank. You can enter this information in the Bank Account Cross Reference - Germany program.

- W Record

  Field 3 - Type of Transaction Concerned

  This field enables you to designate whether the transaction is for capital movements and capital gains, or for services or transfers. You can enter this information in the Bank Account Cross Reference - Germany program.

#### Prerequisites

Before you complete the tasks in this section:

- Verify that the Localization Country Code field in the User Profile Revisions form is set to DE (Germany).

- Verify that you have set up the user-defined codes (UDCs) for processing automatic payments in Germany.

  See Setting Up UDCs for Bank Accounts for Germany.

#### Forms Used to Process Z1 Payments

Form Name | FormID | Navigation | Usage
Find/Browse | W744572A | On the Work With Payment Group - Write Status form, select Regional Info from the Row menu. | Select the payment group.
Fix/Inspect | W744572B | On the Find/Browse form, click Select. | Revise information for the payment group.
Find/Browse | W744573A | On the Work with Payment Detail form, select Regional Info from the Row menu. | Select a pay item.
Work With Pay Item Detail | W744573B | On the Find/Browse form, click Select. | Revise information for the pay item.

#### Modifying Information at the Payment Group Level

Access the Fix/Inspect form.

Inst 01 (instruction 01) through Inst 04 (instruction 04) | Enter a code from the Payment Instruction Code UDC table (74/27) that identifies the payment instructions for a German foreign payment. Note. Either the Inst 03 or Inst 04 field must be zero.
Cost Code | Enter a code from the Cost Settlement Code UDC table (74/28) that identifies the type of cost settlement the system uses for a German foreign payment. Values are: 00: Transfer or third-party fees that are debited to principal. 01: All fees are debited to principal. 02: All fees are debited to recipient.
Labl Paym (label payment) | Enter a code from the Label For Payment UDC table (74/29) that identifies the label for payment for a German foreign payment. Values are: 10: Telex payment. 20: Check drawing. 21: Check drawing, sent by registered mail. 22: Check drawing, sent by special delivery. 23C: Check drawing, sent by registered mail or special delivery. 30: Check drawn on principal, any form of dispatch. 31: Check drawn on principal, sent by registered mail. 32: Check drawn on principal, sent by special delivery. 33: Check drawn on principal, sent by registered mail or special delivery. 34-49: Reserved for intercompany purposes. 50-99: In-house.
Trans. Concern (transaction concern) | Enter a code that identifies the type of transaction for a German foreign payment. Values are: 2: Services, transfers or other expenditures. 4: Capital movements and capital gains. This field is required if the payment handling code for the pay item is W.
Code No. (code number) | Enter a code from the Code Number UDC table (74/30) that identifies the code number for a German foreign payment as per the services index (annex to Foreign Trade and Payments Orders).
Addtl. Inst. Code Info. (additional instruction code information) | Enter additional information for the instruction codes.
Instruction to Principal's Bank | Enter additional instructions for the principal's bank
Contact Name and Telephone Number | Enter the name and number of the person to contact at the principal's company if the paying bank has questions relating to the payment order.
R C (reporting code) | Enter the code that indicates whether the paying bank reports the contents of the T record to the Federal Bank. Values are: 0: The paying bank is to report the contents. 1: The paying bank is not to report the contents.

#### Modifying Information at the Payment Detail Level

Access the Work With Pay Item Detail form.

Payment Group Control Number | Enter a number to group all payments and payment detail together in the AP payments work files. This number identifies a group of payments that are run for the same bank account, payment instrument, DREAM Writer version, originator ID, and currency.
Check Control Number | Enter a number to group all AP payment transactions for each individual check.
Document Number | Enter the number that is associated with the original document, such as a voucher, invoice, or journal entry.

### Working with the Z5a Sheet 2 Report for Germany

This section provides an overview of the Z5a Sheet 2 report, lists prerequisites, and discusses how to:

- Run the Foreign Payables Table Generation program (R74900).

- Set processing options for Foreign Payables Table Generation (R74900).

- Run the Foreign Receivables Table Generation program (R74901).

- Set processing options for Foreign Receivables Table Generation (R74901).

- Run the German Z5a Sheet 2 Report - Summary (R74414) program.

- Setting Processing Options for German Z5a Sheet 2 Report - Summary (R74414).

- Run the German Z5a Sheet 2 Report - Detail (R74415) program.

- Setting Processing Options for German Z5a Sheet 2 Report - Detail (R74415).

#### Understanding the Z5a Sheet 2 Report

Some European countries require that the balance of outstanding payables and receivables with foreign entities be reported on a periodic basis. The Deutsche Bundesbank (German Federal Bank) requires that various reports be submitted on a monthly basis, including the Z5a sheet 2. The Z5a Sheet 2 report is used to collect data that you can transfer to the official form for the Deutsche Bundesbank (German Federal Bank). The Z5a sheet 2 report details of "Forderungen und Verbindlichkeiten gegenuber Gebietsfremden aus dem Waren-und Dienstleistungs verkehr or Claims on and liabilities to nonresidents arising from transactions in goods and services. Foreign payables and receivables are classified by country, and they are reported in thousands of euros.

The Z5a Sheet 2 reports the group's data by affiliated or nonaffiliated companies, by accounts payable or accounts receivable, by prepayments, short-term payments or long-term payments, and by country and currency.

The basic requirement of the Z5a Sheet 2 is to report the company's open accounts payable and open accounts receivable amounts that were transacted with a foreign entity. For the purpose of generating foreign payables tables, all WF - As Of Accounts Payable Ledger table (F0411A) records that are posted but not paid are considered open.

All records written to the Foreign Receivables and Payables - EMEA table (F74900) should:

- Relate to the reporting company.

  For the Z5a Sheet 2 report, the value that is entered during data selection must be equal to the reporting company.

- Be posted.

  All records in tables F0411A and F03B11 must have a status equal to D, where D equals the transactions that have been successfully posted or that have been processed through the cash entries programs with a one-to-one record relationship with the general ledger (for example, adjustments, journal entry from cash receipts, and so on).

- Have transaction dates falling on or before the report ending date.

  The report ending date is the general ledger date.

- Have a customer country code that is different from the country code of the reporting company.

- Be identified for affiliation or nonaffiliation.

- Be identified for EMU membership.

  For the program to determine which currencies to summarize as euro currencies, you must set up the user-defined code list for European Union Members (00/EU).

- Be identified as a prepayment, long-term obligation, or short-term payment.

  A long-term obligation is normally defined as a payable that is due one year from the processing date of the transaction. The value that is entered in this processing option is added to the general ledger date (processing date) and is compared with the due date of the transaction. If the calculated date is equal to or beyond the due date, the transaction is considered a long-term obligation. The system writes a 2 to the Foreign Receivables and Payables - EMEA table (F74900) for long-term obligations. A short-term obligation is normally defined as the calculated date minus the due date. The system writes a 3 to table F74900 for short-term obligations.

  Prepayments are determined by their general ledger offset for accounts receivable transactions and by their document type for accounts payable transactions.

The Z5a Sheet 2 Report - Summary (R74414) report provides totals of both accounts receivable and accounts payable records for prepayments, short-term payments, and long-term payments for affiliated companies and nonaffiliated companies. The totals are listed separately by country and currency.

The German Z5a Sheet 2 Report - Detail (R74415) is not required for reporting the accounts receivable and accounts payable totals to the Deutsche Bundesbank (German Federal Bank). This report contains transaction level detail, and it can be used for the review and audit of transactions.

Generating the Foreign Payables Table

The Foreign Payables Table Generation program (R74900) populates the Foreign Receivables and Payables - EMEA table (F74900), which supplies data to reporting programs. This program reads data from the WF - As Of Accounts Payable Ledger table (F0411A). The system uses the general ledger date to determine the records to process.

Generating the Foreign Receivables Table

The Foreign Receivables Table Generation program (R74901) populates the Foreign Receivables and Payables - EMEA table (F74900), which supplies data to reporting programs. The Foreign Receivables File Generation program is based on information in the Customer Ledger table (F03B11). The system uses the general ledger date to determine the records to process.

#### Prerequisites

Before you complete the tasks in this section:

- Run the Accounts Payable "as of" reports.

- Verify that affiliated companies are set up in user-defined code 74/AC.

  Note. You can override the affiliated companies by using processing options for the Foreign Payables Table Generation - EMEA program (R74900) or the Foreign Receivables Table Generation - EMEA - Germany program (R74901).

#### Running the Foreign Payables Table Generation Program (R74900)

Select German Localization (G74D), Foreign Payables Table Generation.

#### Setting Processing Options for Foreign Payables Table Generation (R74900)

Processing options enable you to specify the default processing for programs and reports.

Defaults

Use these processing options to define the data selection that, in turn, processes data into the Foreign Receivables and Payables - EMEA table (F74900).

1. Report Ending Date | Specify the date that the system compares to the processing date to select transaction records. The system selects records that are either previous to or equal to the date that you enter for this processing option.
2. Long Term Obligation | Specify the number of days to add to the processing date to compare with the transaction due date for determining long-term and short-term obligations. Values are: Long term: Greater than or equal to the due date Short term: Less than the due date
3. Processing Address | Specify which address to use for processing. The system uses this address to determine the location of the supplier. The supplier address number is usually the purchased from address. The payee address number is usually the shipped from address. Values are: Blank: Supplier Address Number 1: Payee Address Number Note. These addresses may be the same.
4. A/P Prepayment | Specify the document type for accounts payable prepayments.
5. Affiliated Suppliers | Product Code Specify the system code of the user-defined code list for affiliated suppliers. In the event that there are multiple reporting companies, you can create additional lists of affiliated suppliers using user-defined system code 55. User-Defined Code Specify the user-defined code of the user-defined code list for affiliated suppliers.

#### Running the Foreign Receivables Table Generation Program (R74901)

Select German Localization (G74D), Foreign Receivables Table Generation.

#### Setting Processing Options for Foreign Receivables Table Generation (R74901)

Processing options enable you to specify the default processing for programs and reports.

Defaults

Use these processing options to define the data selection that, in turn, processes data into the Foreign Receivables and Payables - EMEA table (F74900).

1. Report Ending Date | Specify the last date to include in the report. The system uses the G/L Date of the invoice to recalculate amounts as of the date that you specify in this processing option.
2. Long Term Claim | Specify the number of days to add to the processing date to compare with the transaction due date for determining long-term and short-term claims. Values are: Long term: Greater than or equal to the due date Short term: Less than the due date
3. Processing Address | Specify which address to use for processing. The system uses this address to determine the location of the customer. The customer address number is usually the sold to address. The payor address number is usually the shipped to address. Values are: Blank: Customer Address Number 1: Payor Address Number Note. These addresses may be the same.
4. A/R Prepayment | Specify the general ledger offset for accounts receivable prepayments.
5. Affiliated Customer | Product Code Specify the system code of the user-defined code list for affiliated customers. In the event that there are multiple reporting companies, you can create additional lists of affiliated customers using user-defined system code 55. User-Defined Codes Specify the user-defined code of the user-defined code list for affiliated customers.

#### Running the German Z5a Sheet 2 Report - Summary (R74414) Program

Select German Localization (G74D), Z5a Sheet 2 Report - Summary.

#### Setting Processing Options for German Z5a Sheet 2 Report - Summary (R74414)

Processing options enable you to specify the default processing for programs and reports.

Defaults

1. Reporting Currency | Specify the reporting currency for Z5a reporting. Values are: EUR: Euro
2. Date used for reporting | Specify the date used for reporting.

#### Running the German Z5a Sheet 2 Report - Detail (R74415) Program

Select German Localization (G74D), Z5a Sheet 2 Report - Detail.

#### Setting Processing Options for the German Z5a Sheet 2 Report - Detail (R74415)

Processing options enable you to specify the default processing for programs and reports.

Defaults

1. Processing Address | Specify which address to use for accounts payable or accounts receivable processing. Values are: Blank: Address Number 1: Payee or Payor Number Note. The value in this processing option must match the value for the processing address in the Foreign Payables File Generation report (R74900) or the Foreign Receivables File Generation report (R74901) if you want the report to reflect the same information.