Lesson 5 of 6
Payment blocks and exceptions
6 min
Every payment proposal has items that are due but not paid. Some are not paid on purpose, because someone set a payment block. Others are not paid because the program found a problem, and they appear in the exception list with a reason. Telling these apart, and clearing them quickly, is what separates a calm payment run from a Friday-afternoon scramble.
Payment blocks
A payment block is a key that stops an item, or a whole supplier, from being paid automatically. It can be set on the invoice when it is posted, later on the item, or in the supplier's company code data to block every item for that supplier. Block keys are configured, so their meanings vary, but two are almost universal: a general block (often key A, "blocked for payment"), and the block set by logistics invoice verification when a PO invoice has price or quantity variances (often key R). A blank key means free for payment. The Manage Payment Blocks app lets AP find, set and remove blocks on suppliers and items.
| Block source | Where it is set | Who usually removes it | Contoso example |
|---|---|---|---|
| Item block on posting | Payment data of the invoice | AP after the reason is resolved | Invoice disputed for wrong quantity |
| Invoice verification block | Set automatically when variances exceed tolerance | Purchasing or AP through release of blocked invoices | Lakeside invoice 6% above the PO price |
| Supplier-level block | Supplier company code data | AP lead or master data team | Supplier under bank detail verification |
| Block in the proposal | Edited in the proposal for this run only | Expires with the run | Maria holds one invoice until a credit memo arrives |
Why items land in the exception list
The exception list holds items the program selected but could not pay. Each has a message explaining why. SAP's own knowledge base lists familiar examples: payment method on the invoice not allowed for the supplier, missing or not-allowed bank details, and a supplier with a net debit balance (credits exceed invoices). Other common reasons are amounts below the payment method's minimum or above its maximum, no bank with enough available amount in bank determination, and posting blocks on the supplier.
| Exception reason | Typical cause | Fix |
|---|---|---|
| No valid payment method | Supplier's payment methods do not include the methods in the run, or required master data for the method is missing | Correct the supplier master or add the method to the run |
| Missing or invalid bank details | No bank account on the business partner, or account not valid for the method | Master data team adds or corrects bank details, with verification |
| Account has a debit balance | Credit memos exceed invoices for that supplier | Leave until more invoices arrive, or request a refund |
| Payment block on item or supplier | Block set on purpose or by invoice verification | Resolve the reason, then remove the block |
| Amount outside method limits | Below minimum or above maximum for the method | Use another method or adjust configuration if limits are wrong |
| No bank found | Bank determination has no bank or available amount for this currency and method | Fix bank determination or available amounts |
Common exceptions and how to resolve them.
Once the cause is fixed, the item can be paid by deleting and re-creating the proposal, by the next regular run, or by a manual payment, depending on urgency. Never edit bank details on the business partner to rush a payment through. Changes to supplier bank details are one of the main fraud risks in AP and should follow a separate verification process, ideally with a call-back to a known contact and dual control.
- Is the item in the exception list or just not in the proposal?Exception list → read the message · Not in proposal → check due date, documents entered up to, and run selections
- Does the message point to master data (bank details, payment method)?Yes → raise a master data change with verification · No → continue
- Does it point to a block?Yes → find the owner and the reason before removing it · No → continue
- Does it point to configuration (method limits, bank determination)?Yes → raise it with the finance configuration team · No → check the payment log for details
What would you do?
A new supplier's first invoice is in the exception list with a message about missing bank details. The buyer emails AP a PDF with the supplier's bank account and asks for it to be added today so the invoice can be paid. What should the AP clerk do?
- Blocks stop payment on purpose; exceptions are items the program could not pay.
- Block keys are configurable; a general block and an invoice verification block are typical.
- Common exceptions: payment method, bank details, debit balance, method limits, no bank, blocks.
- Bank detail changes need verification; never change them just to clear an exception quickly.
Check your understanding · not graded
Lesson check
1. Which app lets AP set and remove payment blocks on suppliers and items?
2. A supplier's credit memos exceed its invoices. What does the payment run do?
3. What does a blank payment block key mean?
4. Why should bank detail changes follow a verification process?