SAP APM and In-House Banking Configuration Tutorial

SAP S/4HANA configuration tutorial

This tutorial follows the AUMTECH APM and IHB companion presentation across seven lessons. Work through the organizational settings, converters, payment objects, enrichment and validation, routing, In-House Banking and FI posting in sequence. Use the field tables to compare the configuration with the selected SAP screens.

Training example. The recorded SSA setup uses clearing area PF, IHB bank area SIUS, owner company code 1710 and participant company codes 3000 and 3001. These are example values. Confirm your own system release, master data, currencies, scenario rules and validity dates before applying a step.

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APM and IHB functionality

Start by identifying the source instruction, the processing hub, the approval requirement and the account provider. APM validates and routes payment instructions. IHB maintains internal accounts, while configured BCM integration supplies the approval step for outgoing payment orders.

Course agenda

Follow four stages across the seven lessons. First understand APM and IHB functionality and payment scenarios. Then configure APM organization, converters, payment objects and validation. Next set up IHB master data and financial rules. Finally, trace PINO, POBO and intercompany payments through the expected accounting.

Examples and sandbox references

SAP treasury architecture

Source systems can include SAP ERP, SAP S/4HANA and non-SAP payment or payroll systems. APM provides the central processing context, while IHB maintains the internal accounts. BCM supplies configured payment approval, and the MBC Connector links the process to SAP Multi-Bank Connectivity. Bank Account Management, Cash Management and FI provide the associated account and reporting context.

APM functionality

APM centralizes payment instructions from SAP and non-SAP sources. The converter design standardizes supported incoming messages and prepares bank-specific output. Configured validation, bank-key watch-list screening and exception handling provide controls before the payment reaches the next processing stage.

APM payment processing

1. Receive the instruction. The Input Manager receives the file or message and converts it to the internal payment representation.
2. Enrich and validate. Complete the required payment information and apply configured checks for duplicates, bank details and bank-key watch lists.
3. Determine the route and approval. Select the applicable payment path and, where configured, send outgoing orders for BCM approval.
4. Create the output. Use the configured converter and payment format to create the outgoing instruction. In an integrated bank-connectivity design, send the resulting message through the MBC path.

IHB scenarios

• PINO — Payment in Name Of. Forward the instruction using the source debtor bank account. The forwarding example retains the participant account and does not create an APM G/L posting for that forwarding step.
• POBO — Payment on Behalf Of. Process the participant IHB leg and the external payment from the owner account as separate legs.
• Intercompany internal transfer. Move funds between affiliate IHB accounts through the internal account-management route.
• Bank statement forwarding. Receive the external prior-day or intraday statement centrally, then forward it to the subsidiary that owns the accounting. Configure local posting separately.

APM organization and converters

Build the organizational and interface settings before testing payments. The clearing area identifies the processing context. The channel, medium and format identify the incoming or outgoing interface and determine which converter applies.

APM configuration steps

• Define Clearing Area
• Internal Bank Key Assignment
• Local Cash Management Integration
• Set up Converter
• Define Channels for File handler
• Define Converter (new)
• Maintain Default Values
• Maintain Converter Attributes
• Define XML settings for Format converter
• Define Bank Areas for Account Management
• Account Type definition
• Manage In-House Bank Accounts – Fiori app
• Manage Bank accounts
• Maintain Number Ranges
• Define Payment Order types
• Define Transaction Type
• Assign Transaction Type to Payment Order Types
• Determination Rules
• Enrichment and Validation Checks
• Maintain E&V Check Set
• E&V Check Set Assignment
• Service Level Agreement
• Manage Route & Clearing Agreement
• Assign BCM approval Rules
• MBC connector integration
• FI Posting integration

Clearing area

SPRO > Financial Supply Chain Management > Advanced Payment Management > Basic Configuration > Organization > Define Clearing Areas

Configuration step: Create or copy the clearing area. Maintain its identity, processing calendars and release currency, then save the customizing entry.

PF currently uses EUR for release control. This field is separate from the USD currency of the IHB accounts.

Internal bank key assignment

SPRO > Financial Supply Chain Management > Advanced Payment Management > Basic Configuration > Organization > Assign Internal Bank Keys to Clearing Areas

Configuration step: Assign the internal bank identity to the clearing area so APM can recognize the in-house banking parties.

Local cash management integration

SPRO > Financial Supply Chain Management > Advanced Payment Management > Basic Configuration > Application Configuration > Define Local Application Management Areas

Configuration step: Reuse the delivered Cash Management system. Assign the local area to PF, then maintain its planning-type attribute.

Set up converter format, medium, channel

SPRO > Financial Supply Chain Management > Advanced Payment Management > External Interfaces > File Handler > Basic Configuration > Set Up Converter > Define Formats for File Handler / Define Media / Define Channels for File Handler

Configuration step: Maintain the three identification lists first. Reuse delivered entries where they match the intended message and delivery method.

Converter definition

/PF1/04000043 SPRO > Financial Supply Chain Management > Advanced Payment Management > External Interfaces > File Handler > Basic Configuration > Set Up Converter > Define Converter (new)

Configuration step: Create the converter for the required channel, medium, format and direction. Assign a unique ID and the appropriate delivered converter class.

• SSA inbound class: /PF1/CL_IPM_P_XML_FORMAT_CONV. Outbound XML class: /PF1/CL_OPM_P_XML_FORMAT_CONV.

Inbound converter defaults

/PF1/04000043 > Select ZP1IN > Maintain Converter Attributes / Maintain Default Values

Configuration step: Select the inbound converter and maintain the defaults required when the source message does not provide the APM organizational or order-type values.

Outbound converter attributes

/PF1/04000043 > Select outbound converter > Maintain Converter Attributes

Configuration step: Set the output stream and target format for the intended delivery channel. Maintain a file destination only for an application-server file output.

Current record: ZC53F uses FILE stream, logical file ZSSA_IHB_C53_XML and directory ZSSA_IHB_C53_DIR. ZP15B stays buffered.

XML framework and DMEE output

SPRO > Financial Supply Chain Management > Advanced Payment Management > External Interfaces > File Handler > Basic Configuration > Set Up Converter > XML Framework > Define XML Settings for Format Converter

Configuration step: Assign the matching XML format and validation settings. For DMEE-based payment output, select the required payment format and tree in the outbound design.

Bank area for account management

SPRO > Financial Supply Chain Management > Advanced Payment Management > In-House Bank > Define Bank Areas for Account Management

Configuration step: Create the IHB bank area and assign the legal owner, internal bank identity, currency and business-day calendar.

• Bank area SIUS belongs to owner Company Code 1710.

Bank accounts and payment objects

Keep bank-account customizing, account master data and payment business objects distinct. The participant house-bank link is used by the source payment program, while the BAM technical ID identifies the bank account in the central setup.

BAM account type definition

SPRO > Financial Supply Chain Management > Cash and Liquidity Management > Bank Account Management > Basic Settings > Define Settings for Bank Account Master Data > Account Type Definition

Configuration step: Reuse or define a BAM account type with the contract type In-House Bank Account. Use that account type for participant IHB accounts.

The account type is customizing. The individual in-house bank account is master data in Manage In-House Bank Accounts.

Manage in-house bank accounts

Fiori: Manage In-House Bank Accounts (F5942) > Create

Configuration step: Create the participant current account after bank-area and BP setup. Complete the linked BAM data and release or activate the account.

SSA account 1 is linked to BAM 1000000025. Owner BP 1000241 uses role IHB200; each participant needs its own holder BP.

BAM and house-bank account link

Fiori: Manage Bank Accounts > IHB account > General Data / House Bank Account Connectivity

Configuration step: Complete the BAM account associated with the IHB account and connect the participant house-bank account used by the payment program.

BAM technical ID 1000000025 identifies this account. The payment clearing account is 119902, derived separately.

Payment order and item number ranges

SPRO > Financial Supply Chain Management > Advanced Payment Management > Payment Processing > Business Objects > Payment Order / Payment Item > Maintain Number Ranges

Configuration step: Verify or create valid intervals for the clearing area before processing orders. Assign the intervals required by the selected order and item definitions.

Payment order types

SPRO > Financial Supply Chain Management > Advanced Payment Management > Payment Processing > Business Objects > Payment Order > Define Payment Order Types

Configuration step: Copy or reuse the appropriate order type. Maintain its category, E&V group and numbering assignment for the required processing behavior.

The outbound agreement uses BNKADV in the recorded SSA forwarding setup. Reuse delivered settings that already meet the scenario.

Payment item transaction types

SPRO > Financial Supply Chain Management > Advanced Payment Management > Payment Processing > Business Objects > Payment Item > Define Transaction Types / Assign Transaction Types to Order Types

Configuration step: Define or reuse the originator and recipient transaction types. Assign them to the relevant order type and item category.

ISO20022 determination rules

SPRO > Financial Supply Chain Management > Advanced Payment Management > External Interfaces > File Handler > Format Specific Configuration > ISO20022 > Determine Payment Order Priority / Types / Item Transaction Type

Configuration step: Maintain only the source characteristics needed to derive priority, payment order type and the transaction types for the two payment parties.

Enrichment and validation

Follow the configuration links in order. The payment order or transaction type supplies an E&V group. The assignment selects a check set. The set contains ordered Check IDs, and each function applies the relevant field settings.

E&V group, check set and check id

SPRO > Financial Supply Chain Management > Advanced Payment Management > Payment Processing > Enrichment & Validation > Maintain Enrichment and Validation Check Sets

• The group helps select a set. The set lists the checks. Each check performs a function.
• Screen sequence
• 1. Type supplies OTHER 2. General PF row selects set 1
• 3. Set 1 lists check 23 4. Registered function performs the check

Step 1 the order type supplies the group

SPRO > … > APM > Payment Processing > Business Objects > Payment Order > Define Payment Order Types

• Selected object
• Clearing area: PF
• Payment order type: 000700
• Enrich. & Valid. Grp: OTHER

Step 2 an assignment row selects the set

SPRO > Financial Supply Chain Management > Advanced Payment Management > Payment Processing > Enrichment & Validation > Maintain Enrichment and Validation Check Sets > Assign E&V Check Set for Payment Order

• Order type 000700 supplies OTHER. The blank group criterion in this PF row matches it.
• Selection criteria
• PF + PO Check + general group criteria
• Selected result
• PO E&V ID 000001 = Check Set ID 1

Step 3 the set lists checks and sequence

SPRO > Financial Supply Chain Management > Advanced Payment Management > Payment Processing > Enrichment & Validation > Maintain Enrichment and Validation Check Sets > Assign Checks to E&V Check Set

• PF set 1
• PF set 2
• One set can contain several Check IDs. SAP uses the assigned sequence within the set.

Payment items follow the same links

SPRO > … > APM > Payment Processing > Business Objects > Payment Item > Define Transaction Types

• PO E&V group and TTGrp E&V are separate. The same name does not merge their assignments.

The complete link in PF configuration

SPRO > Financial Supply Chain Management > Advanced Payment Management > Payment Processing > Enrichment & Validation > Maintain Enrichment and Validation Check Sets > Order / Item / Outgoing assignment folders

• Runtime result: /PF1/PO_EXPERT, then Display log and error details

Screen 3 functional type selects field groups

SPRO > Financial Supply Chain Management > Advanced Payment Management > Payment Processing > Enrichment & Validation > Field Groups and Validations > Assign Field Groups to Functional Types

• If Functional Type = STANDARD
• ACCOUNT: account details
• BAM: bank account ID
• BANK: bank-agent data
• OTHERS: other fields
• TECH_MIN: technical minimum

Screen 1 the flags control each field action

SPRO > Financial Supply Chain Management > Advanced Payment Management > Payment Processing > Enrichment & Validation > Field Groups and Validations > Assign Fields to Field Groups

Functional type is assigned in the type definition

SPRO > … > APM > Payment Processing > Business Objects > Payment Order / Payment Item > Define Types

• Order: 000700, E&V Fct. Type = blank
• Item: 510700, Functional Type = blank
• 600700 is also blank.

Blank loads the TECH field group

SE24 > /PF1/CL_PO_E_PAYMENTORDER > GET_FCT_CUSTOMIZING > /PF1/CL_FCT_T_FCT_TYPE_FIELDS > GET_FIELD_SETTINGS

• The Functional Type stays blank. SAP loads FIELD_GROUP = TECH directly.

The TECH rules for incoming order 000700

SPRO > Financial Supply Chain Management > Advanced Payment Management > Payment Processing > Enrichment & Validation > Field Groups and Validations > Assign Fields to Field Groups > TECH / Incoming Payment Order

• Blank Functional Type selects TECH. The incoming-order category keeps these five rows.

PINO POBO and intercompany routing

Test PINO forwarding, POBO and intercompany internal transfers separately. The selected route supplies the path, and the clearing agreement supplies the processing instructions. Verify the runtime route and agreement against the released selection rules.

Route and clearing agreement

/PF1/RN > Clearing Area PF > Route > Clearing Agreement

• Routing selects the processing path for a payment item.

One route can contain several clearing agreements. The tree shows the hierarchy. Rules decide which one SAP selects.

Why routing and clearing agreements are needed

• Payment processing > Enrichment and Validation > Routing > Clearing and output
• The rules select the path. The agreement supplies the processing instructions.
• USD examples. Add rules or agreements when bank, currency or processing terms differ.

Route determination rules in PF

/PF1/RN > Double-click a route > Set of Rules

PINO forwarding route ZPINO3000

/PF1/RN > External Routes > ZPINO3000 > Basic Data

• External route
• Internal Route check box is blank.
• Company 3000
• Account 30000001
• USD
• Selection
• Scenario 1
• Company 3000
• Currency USD

PINO clearing agreement zfwdusd

/PF1/RN > ZPINO3000 > ZFWDUSD > External Clearing Agreem.

• Account and processing option
• Outgoing order and converter
• PI keeps the source item account.
• B forwards the entire incoming order.
• BNKADV / ZP15B
• /PAIN0015, /APP, /CUSTOM

POBO internal and external legs

Maintain the participant account movement and the external bank payment separately. The participant leg uses internal route ZIHB3000 and agreement ZPOBOUSD for individual processing. The owner external leg uses company 1710, account 17100001, external route ZEXT1710 and agreement ZEXTUSD for posting and output.

POBO internal route and agreement

/PF1/RN > ZIHB3000 > ZPOBOUSD > Basic Data

• Route
• Selects account-managing area SIHB for the internal leg.
• Agreement
• ZPOBOUSD
• Internal agreement
• Calendar 99
• Direct Individual Processing

POBO external route ZEXT1710

/PF1/RN > External Routes > ZEXT1710 > Basic Data

• Owner bank context
• Company 1710
• BAM 1000000026
• Account 17100001
• USD
• Selection
• Scenario 4
• Bank Ctry / Bank Key US / 999999802
• Currency USD

POBO clearing agreement owner account

/PF1/RN > ZEXT1710 > ZEXTUSD > External Clearing Agreem.

• BAM determination
• Selects the configured owner bank account.
• Company 1710
• BAM 1000000026

POBO clearing agreement posting and output

/PF1/RN > ZEXT1710 > ZEXTUSD > External Clearing Agreem. > Scroll down

• Posting
• BAM Account Posting by Clearing Item
• Debit 530200
• Credit 630200
• Outgoing instruction
• Type BNKADV
• Sender ZOM1710
• Converter ZP15B
• /PAIN0015 / /APP / /CUSTOM

Intercompany internal route ZINT3000

/PF1/RN > Internal Routes > ZINT3000 > Basic Data and Set of Rules

• Internal transfer
• Internal Route selected
• Account area SIHB
• Currency USD
• Agreement rule under this route
• Route rule: scenario 3, PI bank US / 999999801, USD.

Intercompany clearing agreement zintusd

/PF1/RN > ZINT3000 > ZINTUSD > Basic Data

• Processing
• Calendar 99
• Direct Individual Processing
• The route supplies SIHB.

Route and agreement reference

/PF1/RN > Configuration review, then payment item details > Routing result

• Runtime verification

Inspect the processed item’s selected route and agreement. Match its scenario, PI bank, company and currency to the released rules.

BCM approval rule assignment

SPRO > Financial Supply Chain Management > Advanced Payment Management > External Interfaces > Bank Communication Management (BCM) > Assign Approval Rules for Bank Communication Management

Configuration step: Where approval is part of the design, create the workflow Rule ID in BCM first, then map the applicable APM payments to that Rule ID.

IHB organization and master data

Configure organization first, then the owner and participant identities, and then the accounts and connectivity. Complete the financial and operational settings before using the accounts for an end-to-end payment test.

IHB configuration dependencies

• Organization. Bank area, owner company, bank country/key and calendars
• Identity and accounts. Owner/holder BP roles, IHB accounts and BAM house-bank links
• Financial rules. Limits, conditions, fees, activity types and FI account determination
• Operations. EOD jobs, statement generation, notification and participant posting rules

Bank area for account management

• Owner assignment. Tie the bank area to the company code that owns the IHB subledger.
• Bank identity. Maintain country, bank key, currency, language and calendar.
• FX handling. Choose whether to use the latest available exchange rate or wait for a current rate.
• Example mapping. Book: IBUS / 1750. Recorded SSA: SIUS / 1710.

Business partner roles

BAM and participant house-bank links

• Account type. Use the configured IHB bank-account type.
• Servicer. Identify the BP representing the IHB owner.
• House-bank link. Connect company, house bank, account ID and FI G/L.
• Payment data. Maintain participant and beneficiary internal bank details consistently.

IHB limits interest fees and FI posting

Limits, interest conditions and fees have independent settings, validity dates and release states. Review the active record for the relevant account or group. Trace the accounting separately through APM clearing, IHB-to-FI transfer and the bank statement.

BAM accounts for the SSA scenarios

• In Manage Bank Accounts, search by technical ID and open House Bank Account Connectivity.

IHB limits

• Scope
• Create a limit for a single account or a defined group of accounts.
• Validity
• Maintain amount, currency and effective dates for the intended period.
• Activation
• Verify that the limit for the selected account or group is Active.
• Test cases
• Compare payments within and beyond the limit. Review the breach in the overdraft app.
• Fiori Manage In-House Bank Limits (F5940) → account Limit tab

SIUS account 1 shows an active USD 100,000 limit from 3 Oct 2026 through 31 Dec 9999. Treasury can review breaches in Display In-House Bank Account Overdrafts.

Interest conditions

• Assignment levels
• Bank area, account group or single account
• Interest types
• Credit interest, debit interest and overdraft interest
• Rate design

Maintain rate and validity for each condition. The applicable threshold is part of the overdraft rule.

• Settlement
• Calculate the applicable condition during account balancing or settlement.
• Fiori Manage In-House Bank Conditions (F5941)

The active USD credit condition is fixed at 5% annually using linear Actual/360, valid 9 Nov–31 Dec 2026. Overdraft interest uses a separate condition and the applicable threshold.

IHB fees

• Maintenance
• Monthly account-maintenance fees
• Transactions
• Domestic, international and priority-payment fees
• Assignment
• Bank area, account group or single account
• Accounting
• Use activity type and fee-type mapping to derive the relevant posting.
• Fiori Manage In-House Bank Fee

The active fee for SIUS account 1 is USD 100 monthly, valid 8 Nov–31 Dec 2026. The change history shows fee type ACMNTM and release from In Review to Active.

APM clearing and suspense accounts

SPRO → Advanced Payment Management → Define FI G/L Suspense Account (APM layer)

Show the PF on-behalf scenario 4 suspense mapping for USD. Teach the APM suspense mapping separately from the owner IHB FI derivation.

Expected POBO postings in company code 1710

Follow the same payment through /PF1/PO_EXPERT, /PF1/IHB_FI and FF_5. Verify the posted documents in the end-to-end test.

Show the SSA CASH and CASHINTRNT entries. Verify currency, trading partner and scenario before explaining which G/L each leg uses.

Additional integration and statement configuration

Use these settings to complete the interface and accounting design. External bank statement forwarding and internally generated IHB account statements have different configuration paths and should be verified separately.

The additional reference in the presentation is labeled SAP S/4HANA 2023.

MBC connector interface settings

SPRO > Financial Supply Chain Management > Advanced Payment Management > External Interfaces > File Handler > Multi-Bank Connectivity Connector Integration > Maintain Inbound Settings / Maintain Outbound Settings

Configuration step: For MBC integration, map the incoming message to an APM converter, then map the outgoing converter combination to the required MBC message type.

MBC routing and connectivity are scenario-specific. The SSA local-file examples do not prove external bank transmission.

FI posting g/l overlay and document type

SPRO > Financial Supply Chain Management > Advanced Payment Management > External Interfaces > Posting Interfaces > FI-GL > Define Pattern for G/L Overlay / Determine Document Types

Configuration step: For posting scenarios, derive the clearing G/L from the house-bank account and map the relevant APM transaction types to an FI document type.

The overlay changes selected account digits. If no overlay applies, the house-bank G/L is the default posting account.

Source payment method and bank selection

FBZP > Payment Methods in Country / Company Code > Bank Determination OBPM4

Configuration step: At the source company, assign the payment method, payment medium and bank ranking that generate the intended PINO or IHB instruction.

The source instruction must contain the correct internal or external bank identity for subsequent APM scenario determination.

Bank statements company-code settings

SPRO > Financial Supply Chain Management > Cash and Liquidity Management > Bank Account Management > Define Settings for Bank Statements

Configuration step: For bank-statement forwarding, maintain a valid company-code entry and enable file forwarding. Set posting behavior according to where accounting is performed.

Use No Posting Processing where the receiving system owns accounting. The book company example allows local EoD posting as well as forwarding.

Bank statements bank-account settings

Fiori: Define Bank Account Settings – Bank Statements

Configuration step: Create the account-specific setting for the BAM technical ID. For forwarding without local accounting, enable forwarding and suppress local posting.

Select the account whose statement is received. Confirm target-system routing in MBC and prove delivery and posting in an integrated test.

IHB account statement options

Fiori: Manage In-House Bank Accounts (F5942) > Account Options / Bank Statements

Configuration step: For internal IHB statements, enable the statement requirement, maintain its schedule and assign the recipient and output converter.

Internal IHB statement generation is separate from forwarding external bank statements. The detailed EOD execution remains in the IHB section.

IHB activity types

SPRO → Financial Supply Chain Management → Advanced Payment Management → In-House Bank → Define Activity Types for Account Management / Maintain Activity Type Criteria for Account Management

• Classification. Categorize the business transaction recorded in the IHB account.
• ISO attributes. Use domain, family, subfamily and credit/debit direction.
• FI transfer. Derive G/L handling from the assigned activity type and scenario.
• Fee relationship. Link applicable fee types where the delivered activity requires it.

Compare activity types and their ISO domain, family, subfamily and debit or credit indicator. Trace the selected activity into FI determination.

Account determination must cover both participants and the correct payment scenario.

SAP GUI SM34 → FJEPVC_IHB_ACC_DET | OBA7 → YP | IMG → Document Splitting

• INTERNAL CLEARING AND DOCUMENT SETTINGS

Use the tutorial with the video lessons

The course follows the same seven lesson sequence and includes the companion presentation. Review the syllabus and preview, then use this article as a configuration reference alongside the recordings.

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Read the shorter APM vs BCM payment flow guide