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

2 2006, IBM Corporation

 SAP IS-U Finance & Contract Accounting - Overview

The Contract Accounts SAP R/3

Receivable and Payable
component is a sub-ledger General
developed for industries with a General Ledger
Ledger
large customer base and a
correspondingly high volume CCS (FI-CA)
of documents to post.
This includes insurance
companies, utilities, Sub Ledger
telecommunication, and public
Customer account
service companies. Summarised
balances are Accounting
maintained Postings
Transactions are (No customer
posted (automatically) detail)
at the customer level

3 2006, IBM Corporation

 What is FICA

FICA is the application for accounting of ISU receivables IS Utilities

It is integrated with Billing and Invoicing module of ISU Device Management

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

4 2006, IBM Corporation

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

BI

CRM

5 2006, IBM Corporation

 Master Data Overview ISU House

Connection Object
Apartment 1 = Premise Foyer

Contract 1:
Installation 1: Apartment 3
Electricity
Electricity
Meter Device
Location:
Hall
Contract Contract 2: Installation 2: Apartment 2
Account Gas Gas Meter

Device
Business Contract 3: Installation 3:
Location: Basement
Partner Water Water Meter
Cellar

Service Connection: Water Service Connection: Gas Service Connection: Electricity

Supply Grid

Street

6 2006, IBM Corporation

 Master Data Overview ISU House and Data Model

Move- Connection Object

Business in Link Apartment 1 = Premise

Contract 1:
Installation 1:
Electricity
Foyer
Apartment 3
Electricity
Device
Partner Contract Contract 2:
Meter

Installation 2:
Location:
Hall
Apartment 2
Account Gas Gas Meter

Device
Business Contract 3: Installation 3:
Location: Basement
Partner Water Water Meter
Cellar

Service Connection: Water Service Connection: Gas Service Connection: Electricity

Contract Supply Grid

Portions
Account Street

ISU House

GRID Contract MRU

POD Installation Device

Business Master Data

Technical Master Data

Rate Device
Premise Scheduling Master Data
Category Location
Billing Master Data

Connection
Object

7 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).
BP FICA
Contract (industry/division - specific).
Documents and items. CA CA

Contrac
Contract t

Contract
ISU

8 2006, IBM Corporation

 Contract Account Structure

General Data Dunning Data

Account name Dunning procedure
Account number in legacy Alternative dunning
system recipient
Account class Dunning block reason

Invoicing Incoming Payments

Alternative bill recipient Payment method
Collective bill account Contract Bank details
Invoicing lock reason Alternate payer
Account Payment lock reason

Accounting Outgoing Payments

Account determination ID Payment method
Clearing category Bank details
Payment terms Alternate payee
Tolerance group Payment lock reason

9 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

10 2006, IBM Corporation

 Document Posting Overview

The documents are created automatically in FICA on creation of

invoicing document

Meter Read
Meter Read
Order Billing Invoicing
Entry
Creation

Open Item Doc.

created in FICA

11 2006, IBM Corporation

 Document Structure in FI-CA

Document header
Doc. number
Posting date
Doc. Type
Currency
1:N Reconcil.key 1:N

Business partner items General ledger items

BP number Company code
CA number G/L account
Contract Business area
Company code Cost center
Due date Amount
Amount etc.
etc.

12 2006, IBM Corporation

 FICA Document Structure Consumption Billing

Document Header
Document Number : 010003478
Document Date : 01/07/2008
Posting Date : 01/07/2008
Document Type : A1
Reconciliation Key : 010708R4
1: n
Business Partner Items 1: n General Ledger Items
B Partner Co Code Main Tran Sub Tran Due Date Amount Co Code GL Account DescriptionAmount
100486 UK01 0100 0011 21/07/2008 352.50 UK01 700000 Revenue -300.00
UK01 155000 Tax -52.50

13 2006, IBM Corporation

 FICA Document Structure Payment

Document Header Source Receivable

Document Number : 020009762 Document Number : 010003478
Document Date : 15/07/2008 Document Date : 01/07/2008
Posting Date : 15/07/2008 Posting Date : 01/07/2008
Document Type : B4 Document Type : A1
Reconciliation Key : 150708R8 Reconciliation Key : 010708R4

General Ledger Items Business Partner Items

Co Code GL Account DescriptionAmount B Partner Co Code Main Tran Sub Tran Due Date Amount
UK01 114100 Bank A/c 352.50 100486 UK01 0100 0011 21/07/2008 352.50
Clearing Doc Clearing Date
020009762 15/07/2008

General Ledger Items

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

14 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

15 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

16 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.

17 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

18 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.

19 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 Summary record
Document Recon key 090704 G/L140000 $ 300
posting G/L REV $ 300
FI-CA documents C/A 2 Recon key 090704
G/L140000 DR $ 200
G/L REV CR $ 200
Recon key 090704
Generate
posting

FI Documents
40 140000 $ 300
50 REV $ 300
Reference key 090704

20 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
21 2006, IBM Corporation
 Finance Contract Accounting - Payment

Automatic Manual

Automatic incoming payments Payment lot

Collection procedure Check lot

Credit card payment Payment at cash desk

Refund Return lot

22 2006, IBM Corporation

 FICA- Cash Desk Payment

CityBank
Pay to the order of Currency
Amount
Four hundred - UNI - 400, -
Amount in words
an
UNICEF New York
oder berbringer Ort 1.4.1996
Date

Signature
Do not alter the printed text..
Check No. X Account No. X Amount X Bank Code X Text
00000150900 12131400 67291500 11
Please do not write in this area

Business partner
Contract account
Contract account
Post
Contract directly
Document number Post
Net due date online

Post on
account

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

23 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

24 2006, IBM Corporation

 Direct Debit Process

Defining Bank Details of customer

at Business Partner and Contract Account level

Open item raised

Standard SAP programme Posting of payment

for Direct Debit executed document and
clearing of open item

Generation of Payment File

25 2006, IBM Corporation

 FICA-Direct Debit payment

Customer fills Customer

the submits the
mandate form mandate form

Simulation run is Rectify the errors

executed if any

Soft file is Run the direct

generated debit process

26 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

27 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

28 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

29 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

30 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

31 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.

32 2006, IBM Corporation

 Dunning Process

Min no of days in
arrears / Dunning
Frequency

33 2006, IBM Corporation

 Processing Locks

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

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

Locks
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

34 2006, IBM Corporation