59843426-FICA

© 2006 IBM Corporation

SAP IS-U /CCS

Finance & Contract Account Overview

© 2006, IBM Corporation2

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


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 (FI-CA)

Summarised Accounting

Postings(No customer

detail)

Sub Ledger

• Customer account balances are maintained

• Transactions are posted (automatically) at the customer level

General LedgerGeneral Ledger


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


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

CRMCRM

BIBIBIBI


Master Data Overview – ISU House

Supply Grid

Connection Object

Street

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

Apartment 2

Foyer

Apartment 3

Basement

Apartment 1 = Premise

Contract 1:Electricity

Contract 2:Gas

Contract 3:Water

Installation 1:Electricity

Meter

Installation 2:Gas Meter

Installation 3:Water Meter

Device Location:

Hall

Device Location:

Cellar

Contract Account

Business Partner


Master Data Overview – ISU House and Data Model

Supply Grid

Connection Object

Street


Apartment 2

Foyer

Apartment 3

Basement



Contract 2:Gas

Contract 3:Water


Meter



Device Location:

Hall

Device Location:

Cellar

Contract Account

Business Partner

Supply Grid

Connection Object

StreetStreet


Apartment 2

Foyer

Apartment 3

Basement



Contract 2:Gas

Contract 3:Water


Contract 2:Gas

Contract 3:Water


Meter



Device Location:

Hall

Device Location:

Cellar

Contract Account

Business Partner

ISU House

Scheduling Master Data

Billing Master Data

Business Master Data

Technical Master Data

Business Partner

Contract Account

Contract

Installation

MRU

Premise

ConnectionObject

Portions

DevicePOD

Rate Category

DeviceLocation

GRID

Move-in Link


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.

BPBP

CACA CACA

ContractContract

ContractContract

ContracContractt

ISUISU

FICAFICA


Contract Account – Structure

ContractAccountContractAccount

General Data Account name Account number in legacy

system Account class

Invoicing Alternative bill recipient Collective bill account Invoicing 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 ID Clearing category Payment terms Tolerance group


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

Contract Account

Contract

1: n

Business Partner

1: n


Document Posting – Overview

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

Open Item Doc. created in FICA

Meter Read Order Creation

Meter Read Entry Billing Invoicing


Document Structure in FI-CA

Document headerDoc. numberPosting dateDoc. TypeCurrencyReconcil.key

Business partner itemsBP numberCA numberContractCompany codeDue dateAmountetc.

General ledger itemsCompany codeG/L accountBusiness areaCost centerAmountetc.

1:N 1:N


General Ledger ItemsCo Code GL Account DescriptionAmount

UK01 700000 Revenue -300.00

UK01 155000 Tax -52.50

Business Partner ItemsB Partner Co Code Main Tran Sub Tran Due Date Amount

100486 UK01 0100 0011 21/07/2008 352.50

Document Header

Document Number : 010003478

Document Date : 01/07/2008

Posting Date : 01/07/2008

Document Type : A1

Reconciliation Key : 010708R4

FICA Document Structure – Consumption Billing

1: n

1: n


FICA Document Structure – Payment

Document Header

Business Partner ItemsB Partner Co Code Main Tran Sub Tran Due Date Amount

100486 UK01 0100 0011 21/07/2008 352.50

Clearing Doc Clearing Date

020009762 15/07/2008


UK01 114100 Bank A/c 352.50

Source Receivable




Document Type : A1



UK01 700000 Revenue -300.00

UK01 155000 Tax -52.50




Document Type : B4



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



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



Main transactions determine the Control account for Contract Account

Main transaction and sub transaction together determine the offsetting posting and tax code.



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


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.


Transfer to G/L Accounting in FI-CA

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

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

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

FI Documents40 140000 $ 30050 REV $ 300Reference key 090704

Document posting

Generateposting


Contract Accounting - Basic Business Transactions

PaymentsCash Desk PaymentsPayment LotDirect DebitReturnsInstallments

Clearing Payments against OutstandingDunning

ConceptProcedureLevelsActivityProcess

Locks


Finance Contract Accounting - Payment

Automatic

Automatic incoming payments

Collection procedure

Credit card payment

Refund

Manual

Payment lot

Check lot

Payment at cash desk

Return lot


FICA- Cash Desk Payment

ReceiptYou paid Rs. 123.45on 18/04/2005

Business partner

Contract account

Contract

Document number

Net due date

Postdirectly

Postonline

Post onaccount

Contract account

00000150900 12131400 67291500 11

Please do not write in this area

CityBank

CurrencyAmountPay to the order of

Amount in words

oder Überbringeran

Ort

Date

SignatureDo not alter the printed text..

Check No. Account No.X X Amount X Bank Code X Text

New York1.4.1996

UNI - 400,-Four hundred -

UNICEF


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


Direct Debit – Process

Defining Bank Details of customerat 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


FICA-Direct Debit payment

Customer fills the mandate form

Customer submits the mandate form

Simulation run is executed

Rectify the errors if any

Run the direct debit process

Soft file is generated


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


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


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


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


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


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.


Dunning Process

Min no of days in arrears / Dunning Frequency


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

Processing Locks

ProcessingLocks

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

59843426-FICA

Documents

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