Orange County Convention Center

Orlando, Florida | June 3-5, 2014

ACH Payment Process with DME Engine

Krishnan Ramamurthi
Fujitsu

Bharat Chintalapati
Forest City Enterprises

Fujitsu - Global SAP Reach

Fujitsu North America

SAP Global Partner - Technology

SAP Partner Services
SAP Partner VAR (2013)
SAP Partner Hosting & Cloud
Team SAP Partner
ASAP Partner

Fujitsu EMEA

Fujitsu Ltd

SAP Partner - Services

SAP Partner Hosting
SAP Partner - VAR
Competence Center @ Walldorf
Platform Solution Center

SAP Partner - Services

SAP Partner - Software - with
Certified Integration
Independent Software Vendor with
Certified Integration
SAP Business One - Independent
Sales & Service Provider
SAP All-in-One Channel Partner
Competence Center @Tokyo Platform
Solution Center

Fujitsu China
Holding

TDS (A Fujitsu Company)

Fujitsu Brazil
SAP Partner Services
SAP Partner - Hosting

Global SAP :
>2,700 implementation consultants

SAP Partner-SEP-Duet & HCM

SAP Channel Partner Gold
SAP Partner- Hosting & Cloud incl.
HANA Operations

SAP Service Partner

SAP Hosting Partner
Shanghai Platform
Solution Center

Fujitsu Asia Pacific

SAP Service Partner
SAP Partner Hosting
SAP Business One Independent Sales & Service
Provider

Fujitsu India
SAP Partner - Services
SAP Partner Hosting
SAP Application Management

Fujitsu Hong Kong

SAP SI Practices in Australia, Canada, China, Finland, Germany, India, Italy, Japan, New Zealand, Russia, SAP Partner - Services
Singapore, Sweden, UK&I, USA, and Brazil
Global SAP Hosting & Cloud Certification, Certification as HANA Enterprise Cloud (HEC) Provider
Fujitsu Australia
SAP All-in-One Channel Partner
> 8,000 SAP Customers
SAP All-in-One Value Added Reseller
Global Strategic Partnership with SAP on all levels

SAP All-in-One - Independent Software Vendor

SAP Partner- Hosting & Cloud

FOREST CITY ENTERPRISES, INC.

Is an owner, developer and manager of a diverse
portfolio of premier
real estate property located
throughout the US.
Forest City has assets of
approximately 9 Billion
as of Dec-2013 and operates
under three strategic
business units.

RESIDENTIAL
The Forest Citys Residential Group owns
and/or manages rental units in urban and
suburban apartment communities, adaptive
re-use, supported living properties.
properties like SKY55 in Chicago, to
innovative adaptive reuse communities like
Stapleton in Denver and The Merc in Dallas

Stapleton, Denver

SKY55 in Chicago

The Merc in Dallas

COMMERICAL - OFFICE, SCIENCE & TECHNOLOGY

The Forest Citys Commercial Group is
Forest City's largest business unit with
retail, office, arena, hotel and mixeduse properties

University Park at MIT

FOREST CITY SAP

Forest City is on ECC 6.0 EhP 5.0

Controlling
Flexible Real Estate

Financial Supply Chain

Management
Cash and Liquidity
Management
Transaction Manager (TRM)
Loans Management

Materials Management
Purchasing

Cost Element Accounting

Cost Center Accounting

Financial Accounting
New General Ledger
Asset Accounting
Accounts Payable
Bank Accounting
Profit Center Accounting

Project Systems

AGENDA
Session Objectives
Project scope
Team
Requirements
Considerations
Challenges
Implementation & Overview
Summary of Improvements
Lessons Learned

SESSION OBJECTIVES

How Forest City leveraged Data

Medium Exchange Engine (DMEE) to
define ACH file formats
Value of eliminating legacy payment
system and having the integrated
data in SAP

How utilization of DMEE will

reduce development
Lessons learned from the
implementation

PROJECT SCOPE

Replacing legacy
payment system

Implement SAP
ACH payment
process

Create efficient
and improved
payment
process for A/P
and Treasury

TEAM
SOLUTION ARCHITECT
FUJITSU
DEVELOPERS
PROCESS
INTEGRATION

STATUS
MANGAEMENT
SCOPE MANAGEMENT

CASH MANAGEMENT
ACCOUNTS PAYABLE

IT

BUSINESS

PMO

QA
TESTING
CHANGE
MANAGEMENT

REQUIREMENTS
File transmission to
banking partner with
no manual
intervention

Create ACH
files from SAP
in NACHA
(CCD) format

ACH Debits (22) and

Credits (27) in same
ACH file
Payment document
number and
Loan/Contract
number need to be
in the file

CONSIDERATIONS

Payment
Medium
Workbench

Classic
Payment
Medium
Program
(RFFO*)

Standard
ACH DME &
DMEE

DME Engine

CHALLENGES
Difference in ABA and
Routing numbers
Large number of Companies (1000+)
and Bank accounts (2000+)
Banks with no direct
transmission.
Mixed bag of payments (F110,
FRFT_B, F111)
Work with existing
Configuration and Framework

IMPLEMENTATION

Master data
migration
from legacy
system to SAP

Create
interfaces to
automate
payment
media
transmission

Additional
configuration
for payment
media

Design and
configuration
of DMEE

Payment
media
development
and setup

CURRENT PROCESS OVERVIEW

SAP
generates
custom file
Custom .txt

Text file is
uploaded
into Legacy
payment
system

ACH file in
NACHA
format

Upload this
ACH file to
Bank

AUTOMATED CLEARING HOUSE

ACH: Electronic payments or credits completed in standardized formats
that allow these banking transactions to be sent anywhere in the United
States.

NACHA: The National Automated Clearing House Association The trade
association for the electronic payments, which establish the rules,
industry standards, and procedures governing the exchange of
commercial ACH Payments by depository financial institutions.

ACH Network: Funds transfer system governed by NACHA rules which
provides the clearing of electronic entries for participating financial
institutions.
Virtually every major bank is affiliated with NACHA or works with a local
clearinghouse.

NACHA FORMAT LAYOUT

File Header Record (1)
Batch Header Record (5)
First Entry Detail Record (6)
Second Entry Detail Record (6)
::
::
Last Entry Detail Record (6)
Batch Control Record (8)
File Control Record (9)

CCD (Cash Concentration or Disbursement)

CTX (Corporate Trade Exchange)

DMEE: STRUCTURES & FIELDS

Available structures for use
FPAYH
FPAYHX
FPAYP
SYST

Payment medium: Payment data

Payment Medium: Prepared Data for Payment
Payment medium: Data on paid items
ABAP System Fields

Example of available fields

FPAYH-RWBTR Amount paid in transaction currency
FPAYHX-UBKNT Our Account Number at the Bank
FPAYHX-UBNKA Our Bank Name
FPAYHX-UBNKY Bank key of our bank
FPAYH-ZALDT Posting date of the payment document
FPAYH-ZBNKN Bank Account Number of the Payee
FPAYH-ZBNKY Bank key of the payee's bank
FPAYH-ZNME1 Name of the Payee

MAPPING OF FILE HEADER RECORD

File Creation
Date
(SYST-DATLO )

Record Type
Code (1)

Immediate
Destination Name
(FPAYHX-UBNKA)

Immediate Destination
(FPAYHX-UBNKY)

01

111100000

123456789

YYMMDD

HHMM

94

10

1 Paying Bank Nam

Forest City

File Creation
Time
(SYST-TIMLO)
Priority
Code: '01'
Immediate Origin
(FPAYHX-DTFIN)

Immediate Origin
Name
(FPAYP-BNAME)

DMEE: FORMAT TREE

DMEE: MAPPING PROCEDURE

DMEE: MAPPING PROCEDURE Contd.

DMEE: MAPPING PROCEDURE Contd.

DMEE: NODE TYPES

DMEE: ASSIGNMENT TO PAYMENT METHOD

DMEE: MAPPING USING DME ENGINE

NACHA TEXT FILE SAMPLE

FUTURE PROCESS OVERVIEW

SAP
generates
NACHA
formatted
ACH file

ACH file

Through PI
this ACH file
is sent to
bank

SUMMARY OF IMPROVEMENTS

SAP is THE one

Source for Bank
Master Data

Better
Compliance and
Transparency

Eliminated
Manual Steps in
Payment
Processes

Direct
Transmit
of ACH
files to
Banks

LESSONS LEARNED

THANK YOU

THANK YOU FOR PARTICIPATING

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SESSION CODE: 1605
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