e-Payment, Bank & e-Signature Integrations
Send payment instructions from SAP — e-signed, automated and secure straight to the bank.
In most companies the payment process starts in SAP but is completed outside it. The payment program creates the instructions; they are then re-keyed into bank portals, and the e-signature approval is given outside the system. Every hand-off carries a risk of delay, error and duplicate payment, and it becomes hard to trace afterwards who approved what. The Conforcus e-payment solution sends payment instructions from within SAP to the banks’ systems, e-signed and automated. Approval, signature and transmission to the bank are combined in one flow, and the information returned by the bank is matched to the payments automatically.
The risks that arise once a payment instruction leaves SAP
In standard SAP, the payment program (F110) selects the open items that are due, creates the payment proposal and posts the payment documents. That part of the process is inside the system and controlled. The problem starts at the next step: in most companies the instruction is delivered to the bank and signed by the authorized signatories in the bank portals, that is, outside SAP. Because the same information is entered a second time, the amount, the account or the payee can be wrong, and an instruction can be sent twice.
The other risk is traceability. Separating the people who prepare, approve and sign a payment is a basic internal control principle. When the approval and e-signature chain runs outside the system, it becomes hard to show that this separation was applied, and the records are spread across SAP, email and the bank portal. In multi-bank, multi-company structures each bank brings its own portal and its own way of working, and the treasury team spends a considerable part of its time moving data between these screens.
How the solution brings the payment flow together
The solution is integrated with the FI payment program (F110) and the bank communication layer. Payments are created in the payment program as they are today; what changes is the steps that follow. Approval and e-signature are given in the flow inside SAP, the instruction is prepared in the format the bank accepts, and it is transmitted to the bank automatically. Because the instruction no longer has to be re-entered in a bank portal, the errors and the duplicate-payment risk that come from manual entry are removed.
The return leg of the flow is automated as well. The statements and feedback that come back from the bank are matched to the related payment, and it can be followed in SAP which instructions have been transmitted and which have received feedback. The solution runs in multi-bank, multi-company structures. Because bank formats differ from one another, each bank in scope is set up individually during implementation.
What changes for treasury and finance teams
On payment day the treasury team manages the flow instead of entering data in bank portals: it follows which instructions are awaiting approval, which have been signed and which have been transmitted to the bank. With no re-entry and no waiting between the steps, the payment cycle is faster. And since the approval and e-signature chain is recorded end to end, the system can show who approved what and when, in an audit or whenever a payment is queried.
Treasury control is stronger too. Because instructions are produced directly from the payment records in SAP, the information sent to the bank and the information in accounting rest on the same source. There is no need to check each bank portal separately to see what stage payments have reached. For the CFO and finance management, this means the payment process can be followed from one place.
Defining the scope, and where the solution fits
The scope of the solution is defined during implementation according to the company’s banks and authorization structure. Which banks and which companies are brought into the flow, the format each bank accepts, the rules that govern the approval steps and where the authorized signatories sit in the flow are all settled at this stage. Signing authority rests on the company’s signature circular and its agreements with the banks; the solution does not change those authorities, it reflects them in the flow.
The solution suits companies that make their payments from SAP and transfer the instructions to banks by hand. The burden and the risk of manual transfer are highest in groups that work with several banks and have several companies; in these structures the solution uses the same flow across banks and companies. It is aimed at treasury directors, CFOs and finance teams.
Benefits
- Manual bank entry and duplicate-payment risk eliminated
- Approval and e-signature chain fully traceable end to end
- Faster payment cycle, stronger treasury control
Where it sits in SAP
Integrated with the FI payment program (F110) and bank communication layer; supports e-signature, bank file formats and automated statement/feedback matching. Runs across multi-bank, multi-company setups.
Who it is for: Treasury Director, CFO, Finance
Frequently asked questions
How do payment instructions reach the bank, and does each bank need its own format?
Payments are created in the standard FI payment program (F110); the solution converts the instruction into the format the bank accepts and transmits it through the bank communication layer. Because bank formats differ, each bank in scope is set up during implementation, and the solution runs in multi-bank, multi-company structures. Since instructions are no longer re-keyed into a bank portal, the risk of transfer errors and duplicate payments is removed.
Do payment approval and the e-signature step run inside SAP?
Yes: approval, e-signature and transmission to the bank are combined in one flow that runs from within SAP. Approval steps are defined according to the company's authorization rules, for example by amount and company. Who approved and signed what, and when, stays on record, so the approval and e-signature chain is traceable end to end. How the authorized signatories are placed in the flow is decided during implementation.
How is the information returned by the bank tracked in SAP, and how do we know a payment was executed?
Statements and feedback returned by the bank are matched automatically to the related payment, so reconciliation is not done by hand. Treasury follows in SAP which instructions were transmitted and which have received feedback. Records that do not match, or that the bank did not process, are visible, so follow-up concentrates on those exceptions.
What changes in our current payment process, and what stays the same?
The selection of the items to be paid and the payment proposal stay as they are today. What changes is the steps after the proposal: approval and e-signature move into the flow inside SAP, the instruction is transmitted to the bank automatically, and the information returned by the bank is matched to the payment. The step of entering data by hand in a bank portal disappears.
How is the solution used in multi-company groups?
The solution runs in multi-company, multi-bank structures, and the companies in the group use the same flow. Which companies and which bank accounts are in scope, and each company’s approvers and authorized signatories, are defined during implementation. Each company keeps its own authorization structure, while the group follows the payment process in a common framework.
How does the solution contribute to payment security?
Because the instruction goes from SAP to the bank without manual intervention, the risk of payment details being mistyped or altered during re-entry is removed. The instruction reaches the bank after passing through the defined approval and e-signature steps. Errors specific to manual transfer, such as sending the same instruction twice, are also kept out of the flow.