SAP IS-U /CCS

Finance & Contract Account Overview

2006 IBM Corporation

Finance & Contract Account Overview Topics

FI-CA Introduction & Integration with SAP R/3 Modules Central Objects in FI-CA Document Structure in FI-CA Account Determination

Basic Business Transactions in FI-CA

2006, IBM Corporation

SAP IS-U

Finance & Contract Accounting - Overview SAP R/3

The Contract Accounts Receivable and Payable component is a sub-ledger developed for industries with a large customer base and a correspondingly high volume of documents to post. This includes insurance companies, utilities, telecommunication, and public service companies.

General General Ledger Ledger

CCS (FI-CA)

Sub Ledger
Customer account balances are maintained Transactions are posted (automatically) at the customer level Summarised Accounting Postings
(No customer detail)

2006, IBM Corporation

What is FICA

FICA is the application for accounting of ISU receivables

It is integrated with Billing and Invoicing module of ISU The transactions created in FICA are posted in R/3 FIGL by batch job Additional services that are provided by a utility company (e.g. maintenance and repairs) can be accounted for in FI-AR component, which is a core R/3 component used for receivables

IS Utilities
Device Management IDE Billing & Invoicing EDM FICA

2006, IBM Corporation

FI-CA Integration with other components of SAP IS-U & SAP R/3

BI

CRM

2006, IBM Corporation

Master Data Overview ISU House

Connection Object
Apartment 1 = Premise
Contract 1: Electricity Installation 1: Electricity Meter Installation 2: Gas Meter

Foyer Apartment 3
Device Location: Hall

Contract Account

Contract 2: Gas

Apartment 2

Business Partner

Contract 3: Water
Service Connection: Water

Installation 3: Water Meter

Service Connection: Gas

Device Location: Cellar

Basement

Service Connection: Electricity

Supply Grid

Street

2006, IBM Corporation

Master Data Overview ISU House and Data Model

Business Partner

Movein Link

Connection Object
Apartment 1 = Premise
Contract 1: Electricity Installation 1: Electricity Meter Installation 2: Gas Meter

Foyer Apartment 3
Device Location: Hall

Contract Account

Contract 2: Gas

Apartment 2

Business Partner

Contract 3: Water
Service Connection: Water

Installation 3: Water Meter

Service Connection: Gas

Device Location: Cellar

Basement

Service Connection: Electricity

Contract Account

Supply Grid

Portions

Street

ISU House
GRID Contract MRU

POD

Installation

Device
Business Master Data Technical Master Data

Rate Category

Premise

Device Location

Scheduling Master Data Billing Master Data

Connection Object

2006, IBM Corporation

Central Objects in FICA

Business Partner
It contains central data, such as names, addresses, communication data and bank details. It represents a natural or legal person with whom business relationships can be conducted.

Contract Account
It Contains control data, such as payment methods, terms of payment and dunning procedures. An Object, for which open items accounting is managed in Contract Accounts Receivable and Payable It usually represents a group of contracts (industry/division specific).

Contract (industry/division - specific). Documents and items.

CA

BP

FICA

CA

Contract

Contrac t

Contract

ISU

2006, IBM Corporation

Contract Account Structure

General Data
Account name Account number in legacy
system

Dunning Data
Dunning procedure Alternative dunning
recipient

Account class

Dunning block reason

Invoicing
Alternative bill recipient Collective bill account Invoicing lock reason

Incoming Payments

Contract Account

Payment method Bank details Alternate payer Payment lock reason

Accounting

Account determination ID Clearing category Payment terms Tolerance group

Outgoing Payments
Payment method Bank details Alternate payee Payment lock reason

2006, IBM Corporation

Contract

Agreement between the Utility company and Business Partner

Created on Move in of Business Partner into the property Integrated Business Master Data with Technical Master Data Contains control data for billing, budget billing One Business Partner can have several Contract Accounts One Contract Accounts can have several contracts allocated
Business Partner
1: n

Contract Account
1: n

Contract
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2006, IBM Corporation

Document Posting Overview

The documents are created automatically in FICA on creation of invoicing document

Meter Read Order Creation

Meter Read Entry

Billing

Invoicing

Open Item Doc. created in FICA

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2006, IBM Corporation

Document Structure in FI-CA Document header

Doc. number Posting date Doc. Type Currency Reconcil.key

1:N

1:N

Business partner items

BP number CA number Contract Company code Due date Amount etc.
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General ledger items

Company code G/L account Business area Cost center Amount etc.

2006, IBM Corporation

FICA Document Structure Consumption Billing

Document Header
Document Number Document Date Posting Date Document Type Reconciliation Key : : : : : 010003478 01/07/2008 01/07/2008 A1 010708R4

1: n

Business Partner Items

B Partner Co Code 100486 UK01

1: n

General Ledger Items

Co Code GL Account Description Amount UK01 700000 Revenue -300.00 UK01 155000 Tax -52.50

Main Tran Sub Tran Due Date Amount 0100 0011 21/07/2008 352.50

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2006, IBM Corporation

FICA Document Structure Payment

Document Header
Document Number Document Date Posting Date Document Type Reconciliation Key : : : : : 020009762 15/07/2008 15/07/2008 B4 150708R8

Source Receivable
Document Number Document Date Posting Date Document Type Reconciliation Key : : : : : 010003478 01/07/2008 01/07/2008 A1 010708R4

General Ledger Items

Co Code GL Account Description Amount UK01 114100 Bank A/c 352.50

Business Partner Items

B Partner Co Code 100486 UK01 Clearing Doc 020009762 Main Tran Sub Tran Due Date Amount 0100 0011 21/07/2008 352.50 Clearing Date 15/07/2008

General Ledger Items

Co Code GL Account Description Amount UK01 700000 Revenue -300.00 UK01 155000 Tax -52.50

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2006, IBM Corporation

Account Determination (1/4)

Essential elements required for Account Determination are

Application Area Eg. R for Utility, T for Telecom Posting Area A key representing a sub-function that supports automatic determination of certain data required to create documents. This data can include account numbers and other default entries used in posting transactions and clearing transactions. Eg. 0010 Tax on Sales/Purchases Chart of Accounts
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2006, IBM Corporation

Account Determination (2/4)

Further elements that may be required for Acct Determ. are

Company Code, Division, Account Determination ID, Main Transaction and Sub Transaction Company Code and Acct Determ. Id are defined in Contract Accounts

Divisions come from Contract Main and Sub transaction are called from Documents

Company code. Tax Code and Transaction key for tax account determination

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2006, IBM Corporation

Account Determination (3/4)

Main transactions determine the Control account for Contract Account Main transaction and sub transaction together determine the offsetting posting and tax code.

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2006, IBM Corporation

Account Determination (4/4)

IS Applications have predefined Internal Main & Sub Transactions.

External Main & Sub transactions are allocated to Internal Main and Sub transactions and attributes such as dr/cr indicator and statistical keys are maintained in Customizing External Main & Sub transactions for manual entries are not mapped to internal main and sub transactions
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2006, IBM Corporation

Transfer to FIGL Terminologies

Summary Records While transferring records from FICA to FIGL, the FICA documents are consolidated into summary records. The records are summarised based on company code, posting date, GL Accounts.
Reconciliation Key Key under which summary records are stored in FICA for subsequent transfer to FIGL. The reconciliation key is stored in the header of the document created in FIGL. This enables reconciliation between FICA summary records and their GL Documents. For mass postings, such as invoicing, payments and returns, the reconciliation key is determined automatically. For manual posting, the reconciliation key needs to be entered manually.

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2006, IBM Corporation

Transfer to G/L Accounting in FI-CA

FI-CA documents C/A 1 G/L140000 DR $ 100 G/L REV CR $ 100 Recon key 090704 FI-CA documents C/A 2 G/L140000 DR $ 200 G/L REV CR $ 200 Recon key 090704

Document posting

Summary record G/L140000 $ 300 G/L REV $ 300 Recon key 090704

Generate posting

FI Documents 40 140000 50 REV Reference key

$ 300 $ 300 090704

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2006, IBM Corporation

Contract Accounting - Basic Business Transactions

Payments Cash Desk Payments Payment Lot Direct Debit Returns Installments Clearing Payments against Outstanding Dunning Concept Procedure Levels Activity Process Locks
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2006, IBM Corporation

Finance Contract Accounting - Payment Automatic Manual Payment lot Check lot Payment at cash desk Return lot

Automatic incoming payments

Collection procedure Credit card payment Refund

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2006, IBM Corporation

FICA- Cash Desk Payment

CityBank
Pay to the order of Amount in words an oder berbringer

Four hundred UNICEF

Currency Amount

UNI

- 400, -

Ort

New York 1.4.1996

Date Signature
Do not alter the printed text..

Check No. 00000150900

Account No. 12131400

X Amount

Bank Code X Text 67291500 11

Please do not write in this area

Business partner Contract account

Contract Document number Net due date

Contract account Post directly Post online Post on account

Receipt
You paid Rs. 123.45 on 18/04/2005

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2006, IBM Corporation

Payment Lot

Payment Lot combines payments that are processed together

Can be used to process the payments made by customers to third parties or via bank transfers Can be created online Can be created using an interface programme, by which payment file from third parties can be loaded to the SAP system Payment lot stores all information about payment items, such as Business Partner, Contract Account and Invoice number. This information is used for clearing of open items and / or posting to interim accounts

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2006, IBM Corporation

Direct Debit Process

Defining Bank Details of customer at Business Partner and Contract Account level

Open item raised

Standard SAP programme for Direct Debit executed

Posting of payment document and clearing of open item

Generation of Payment File

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2006, IBM Corporation

FICA-Direct Debit payment

Customer fills the mandate form Customer submits the mandate form

Simulation run is executed

Rectify the errors if any

Soft file is generated

Run the direct debit process

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2006, IBM Corporation

Returns

The returns are posted in FICA via Return Lot

Return Lot combines the payment made by customers that were returned unpaid Can be created online

Can be created using an interface programme, by which payment file from third parties (Bank) can be loaded to the SAP system
Payment due date can be deferred automatically on return processing

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2006, IBM Corporation

Instalment plan

When an open item is for a very high amount and the business partner fails to pay the amount until a certain dunning level
We can propose to create an instalment plan of equated amounts including

interest and instalment charges

The instalment plan parameters can be predefined in customizing so that

you can create instalments with just a start date.

If there is a default in payment of instalment amounts, the instalment plan can be deactivated
Automatically through a dunning activity upon reaching a dunning level Or manually

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2006, IBM Corporation

Dunning Concept

Dunning is the process of executing certain activities if the customer fails to make the payment within the due date of the invoice. These activities can be:
Sending remainder letter to customer Release for submission to collection agency

Cancellation of Instalment Plan

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2006, IBM Corporation

Dunning Masters
Dunning Procedure

Key representing procedure for Dunning Determines number of dunning levels, dunning frequency and dunning activities Defined at Contract Account level

The open items in the contract account will be dunned as per the dunning procedure key defined at the contract account level
Example Utility company may require different debt collection strategy for Residential and Commercial customers. In this case, 2 dunning procedures may be defined each for Residential customers and Commercial customers

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2006, IBM Corporation

Dunning Masters

Dunning Level

Dunning Level represents sequence of steps taken to initiate recovery from the customer
A Dunning Procedure contains several dunning level. Every subsequent level represents the next logical step in the recovery proceeding

Defines:
Number of days that have elapsed since last dunning notice Dunning activities to be executed. More than one activity can be defined at a dunning level Charge schedule for charging dunning cost, if any, to the customer

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2006, IBM Corporation

Dunning Masters

Dunning Activity
Represents the activities defined to be executed at each dunning level Dunning activities can be sending reminder letter to customer, release for

submission to collection agency, cancellation of installment plan etc.

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2006, IBM Corporation

Dunning Process
Min no of days in arrears / Dunning Frequency

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2006, IBM Corporation

Processing Locks

Invoicing Lock
Can be applied at Contract Account level Prevents invoicing for the account

Posting Lock

Processing Locks

Can be applied at Contract Account level Prevents posting, clearing, reversal Prevents dunning for the account

Payment Lock
Can be applied at Contract Account or document level Prevents documents from being processed in the Payment Run

Dunning Lock
Can be applied at Contract Account or document level Prevents documents / account from being processed in the Dunning Run

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2006, IBM Corporation