2006 BM Corporation

SAP IS-U /CCS

Finance & Contract Account Overview
2006, BM Corporation
Finance & Contract Account - Overview Topics
F-CA ntroduction & ntegration with
SAP R/3 Modules
Central Objects in F-CA
Document Structure in F-CA
Account Determination
Basic Business Transactions in F-CA
2006, BM Corporation
SAP IS-U Finance & Contract Accounting - Overview
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.
SAP R/3
General
Ledger
CCS (F-CA)
Summarised
Accounting
Postings
(No customer
detail)
Sub Ledger
Customer account
balances are
maintained
Transactions are
posted (automatically)
at the customer level
GeneraI Ledger GeneraI Ledger
2006, BM Corporation
at is FICA
FICA is te appIication for accounting of ISU receivabIes
It is integrated wit BiIIing and Invoicing moduIe of ISU
Te transactions created in FICA are posted in R/ FIGL by batc job
AdditionaI services tat are provided by a
utiIity company (e.g. maintenance and repairs)
can be accounted for in 'FI-AR' component,
wic is a core R/ component used for
receivabIes
IS UtiIities
Device Management
DE
Billing & nvoicing
EDM
FCA
2006, BM Corporation
FI-CA - Integration wit oter components of SAP IS-U & SAP R/
CRM CRM
BI BI BI BI
2006, BM Corporation
Master Data Overview - ISU House
SuppIy Grid
Connection Object
Street
Service Connection: ater Service Connection: Gas Service Connection: EIectricity
Apartment
Foyer
Apartment
Basement
Apartment 1 = Premise
Contract 1:
EIectricity
Contract :
Gas
Contract :
ater
InstaIIation 1:
EIectricity
Meter
InstaIIation :
Gas Meter
InstaIIation :
ater Meter
Device
Location:
HaII
Device
Location:
CeIIar
Contract
Account
Business
Partner
2006, BM Corporation
Master Data Overview - ISU House and Data ModeI
SuppIy Grid
Connection Object
Street
Service Connection: ater Service Connection: Gas Service Connection: EIectricity
Apartment
Foyer
Apartment
Basement
Apartment 1 = Premise
Contract 1:
EIectricity
Contract :
Gas
Contract :
ater
InstaIIation 1:
EIectricity
Meter
InstaIIation :
Gas Meter
InstaIIation :
ater Meter
Device
Location:
HaII
Device
Location:
CeIIar
Contract
Account
Business
Partner
SuppIy Grid
Connection Object
Street Street
Service Connection: ater Service Connection: Gas Service Connection: EIectricity
Apartment
Foyer
Apartment
Basement
Apartment 1 = Premise
Contract 1:
EIectricity
Contract :
Gas
Contract :
ater
Contract 1:
EIectricity
Contract :
Gas
Contract :
ater
InstaIIation 1:
EIectricity
Meter
InstaIIation :
Gas Meter
InstaIIation :
ater Meter
Device
Location:
HaII
Device
Location:
CeIIar
Contract
Account
Business
Partner
SU House
Scheduling Master Data
Billing Master Data
Business Master Data
Technical Master Data
Business
Partner
Contract
Account
Contract
nstallation
MRU
Premise
Connection
Object
Portions
Device POD
Rate
Category
Device
Location
GRD
Move-
in Link
2006, BM Corporation
CentraI Objects in FICA
Business Partner
t contains central data, such as names, addresses,
communication data and bank details.
t represents a natural or legal person with whom business
relationships can be conducted.
Contract Account
t 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
t usually represents a group of contracts (industry/division -
specific).
Contract (industry/division - specific).
Documents and items.
BP BP
CA CA CA CA
Contract Contract
Contract Contract
Contrac Contrac
t t
ISU ISU
FICA FICA
2006, BM Corporation
Contract Account - Structure
Contract
Account
Contract
Account
GeneraI Data
Account name
Account number in legacy
system
Account class
Invoicing
Alternative bill recipient
Collective bill account
nvoicing lock reason
Dunning Data
Dunning procedure
Alternative dunning
recipient
Dunning block reason
Incoming Payments
Payment method
Bank details
Alternate payer
Payment lock reason
Outgoing Payments
Payment method
Bank details
Alternate payee
Payment lock reason
Accounting
Account determination D
Clearing category
Payment terms
Tolerance group
2006, BM Corporation 10
Contract
Agreement between te UtiIity company and Business Partner
Created on 'Move in' of Business Partner into te property
Integrated Business Master Data wit TecnicaI Master Data
Contains controI data for biIIing, budget biIIing
One Business Partner can ave severaI Contract Accounts
One Contract Accounts can ave severaI contracts aIIocated
Contract Account
Contract
1: n
Business Partner
1: n
2006, BM Corporation 11
Document Posting - Overview
Te documents are created automaticaIIy in FICA on creation of
invoicing document
Open tem Doc.
created in FCA
Meter Read
Order
Creation
Meter Read
Entry
BiIIing Invoicing
2006, BM Corporation 1
Document Structure in FI-CA
Document eader
Doc. number
Posting date
Doc. Type
Currency
ReconciI.key
Business partner items
BP number
CA number
Contract
Company code
Due date
Amount
etc.
GeneraI Iedger items
Company code
G/L account
Business area
Cost center
Amount
etc.
1:N
1:N
2006, BM Corporation 1
General Ledger tems
Co Code GL Account DescriptionAmount
UK01 00000 Revenue -00.00
UK01 1000 Tax -.0
Business Partner tems
B Partner Co Code Main Tran Sub Tran Due Date Amount
100 UK01 0100 0011 1/0/00 .0
Document Header
Document Number : 01000
Document Date : 01/0/00
Posting Date : 01/0/00
Document Type : A1
ReconciIiation Key : 0100R
FICA Document Structure - Consumption BiIIing
1: n
1: n
2006, BM Corporation 1
FICA Document Structure - Payment
Document Header
Business Partner tems
B Partner Co Code Main Tran Sub Tran Due Date Amount
100 UK01 0100 0011 1/0/00 .0
CIearing Doc CIearing Date
0000 1/0/00
General Ledger tems
Co Code GL Account DescriptionAmount
UK01 11100 Bank A/c .0
Source Receivable
Document Number : 01000
Document Date : 01/0/00
Posting Date : 01/0/00
Document Type : A1
ReconciIiation Key : 0100R
General Ledger tems
Co Code GL Account DescriptionAmount
UK01 00000 Revenue -00.00
UK01 1000 Tax -.0
Document Number : 0000
Document Date : 1/0/00
Posting Date : 1/0/00
Document Type : B
ReconciIiation Key : 100R
2006, BM Corporation 1
Account Determination (1/)
EssentiaI eIements 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
2006, BM Corporation 1
Account Determination (/)
Furter eIements tat may be required for Acct Determ. are
Company Code, Division, Account Determination ID, Main Transaction
and Sub Transaction
+ Company Code and Acct Determ. d 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
2006, BM Corporation 1
Account Determination (/)
Main transactions
determine the
Control account for
Contract Account
Main transaction and
sub transaction
together determine
the offsetting
posting and tax
code.
2006, BM Corporation 1
Account Determination (/)
S Applications have
predefined nternal Main
& Sub Transactions.
External Main & Sub
transactions are
allocated to nternal
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
2006, BM Corporation 1
Transfer to FIGL - TerminoIogies
Summary Records - iIe transferring records from FICA to FIGL, te
FICA documents are consoIidated into summary records. Te records are
summarised based on company code, posting date, GL Accounts.
ReconciIiation Key - Key under wic summary records are stored in
FICA for subsequent transfer to FIGL. Te reconciIiation key is stored in
te eader of te document created in FIGL. Tis enabIes reconciIiation
between FICA summary records and teir GL Documents.
For mass postings, suc as invoicing, payments and returns, te
reconciIiation key is determined automaticaIIy. For manuaI posting, te
reconciIiation key needs to be entered manuaIIy.
2006, BM Corporation 0
Transfer to G/L Accounting in FI-CA
FI-CA documents C/A 1
G/L10000 DR $ 100
G/L REV CR $ 100
Recon key 000
FI-CA documents C/A
G/L10000 DR $ 00
G/L REV CR $ 00
Recon key 000
Summary record
G/L10000 $ 00
G/L REV $ 00
Recon key 000
FI Documents
0 10000 $ 00
0 REV $ 00
Reference key 000
Document
posting
Generate
posting
2006, BM Corporation 1
Contract Accounting - Basic Business Transactions
Payments
Cas Desk Payments
Payment Lot
Direct Debit
Returns
InstaIIments
CIearing Payments against Outstanding
Dunning
Concept
Procedure
LeveIs
Activity
Process
Locks
2006, BM Corporation
Finance Contract Accounting - Payment
Automatic
Automatic incoming payments
Collection procedure
Credit card payment
Refund
ManuaI
Payment lot
Check lot
Payment at cash desk
Return lot
2006, BM Corporation
FICA- Cas Desk Payment
Receipt
You paid Rs. 1.
on 1/0/00
Business partner
Contract account
Contract
Document number
Net due date
Post
directIy
Post
onIine
Post on
account
Contract account
00000150900 12131400 67291500 11
Please do not write in this area
CityBank
Currency Amount Pay to the order of
Amount in words
oder berbringer
an
Ort
Date
Signature
Do not aIter teprintedtext..
Check No. Account No. X X Amount X Bank Code X Text
0York
1.4.1996
U 400, our hundr0d
U
2006, BM Corporation
Payment Lot
Payment Lot combines payments tat are processed togeter
Can be used to process te payments made by customers to tird parties
or via bank transfers
Can be created onIine
Can be created using an interface programme, by wic payment fiIe from
tird parties can be Ioaded to te SAP system
Payment Iot stores aII information about payment items, suc as
Business Partner, Contract Account and Invoice number. Tis information
is used for cIearing of open items and / or posting to interim accounts
2006, BM 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
2006, BM Corporation
FICA-Direct Debit payment
Customer fiIIs
te
mandate form
Customer
submits te
mandate form
SimuIation run is
executed
Rectify te errors
if any
Run te direct
debit process
Soft fiIe is
generated
2006, BM Corporation
Returns
Te returns are posted in FICA via 'Return Lot'
Return Lot combines te payment made by customers tat were
returned unpaid
Can be created onIine
Can be created using an interface programme, by wic payment
fiIe from tird parties (Bank) can be Ioaded to te SAP system
Payment due date can be deferred automaticaIIy on return
processing
2006, BM Corporation
InstaIment pIan
en an open item is for a very ig amount and te business
partner faiIs to pay te amount untiI a certain dunning IeveI
+ 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 tere is a defauIt in payment of instaIment amounts, te
instaIment pIan can be deactivated
+ Automatically through a dunning activity upon reaching a dunning level
+ Or manually
2006, BM Corporation
Dunning - Concept
Dunning is te process of executing certain activities if te
customer faiIs to make te payment witin te due date of te
invoice. Tese activities can be:
+ Sending remainder letter to customer
+ Release for submission to collection agency
+ Cancellation of nstalment Plan
2006, BM Corporation 0
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
2006, BM Corporation 1
Dunning - Masters
Dunning LeveI
+ 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
2006, BM 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.
2006, BM Corporation
Dunning Process
Min no of days in
arrears / Dunning
Frequency
2006, BM Corporation
Payment Lock
Can be applied at Contract Account or document level
Prevents documents from being processed in the Payment Run
Processing Locks
Processing
Locks
Posting Lock
Can be applied at Contract Account level
Prevents posting, clearing, reversal
Prevents dunning for the account
Invoicing Lock
Can be applied at Contract Account level
Prevents invoicing for the account
Dunning Lock
Can be applied at Contract Account or document level
Prevents documents / account from being processed in the Dunning Run