SAP Credit Card process and set up.

08/25/2015 Prepared by : Vivek Patel

Contents

1. SAP Credit Card Process............................................................................................................................................4

1.1 Terminology associated with credit card processing........................................................................................4

1.2 Integration ........................................................................................................................................................5

2. Process Flow..............................................................................................................................................................6

3. Card type, usage configuration and processing........................................................................................................8

3.1 Maintain Card Type........................................................................................................................................... 8

3.2Assign Payment card Plan Type to sales document types .......................................................................................8

3.3 Payment Card in Master Data...........................................................................................................................9

3.4 Creating Sales Order .........................................................................................................................................9

3.5 Authorization ..................................................................................................................................................11

3.6 Payment Card interface to clearing house......................................................................................................12

3.7 Credit Card Settlement ...................................................................................................................................13

1. SAP Credit Card Process

Payment card processing function supports payments made using payment cards, for example, credit cards, Debit

Card. Payment Card process is also referred as credit card process ing SAP .

To implement online credit card processing in SAP we need an interfacing with the 3rd party vendors. We use the

SAP Net Weaver's PI and J2EE engine which provides the required communication medium.

1.1 Terminology associated with credit card processing

Before we get started with the credit card process we need to get familiarized with some of the important

terminologies.

a) Merchant I D - It's the ID given by the merchant bank to the supplier to which the payments and collections

are affected.

b) Merchant Bank - Supplier's Bank i.e. The company which is implementing credit card process.

b) 3rd Party Service Provider - It provides the interfacing between SAP and clearing house.

d) Clearing house - Provides the authorization and settlement services.

e) Authorization - The process of checking whether the credit card is valid or not and enough fund is available to

make a purchase.

e) Authorization Window - It's the number days that you want to consider the material as available and execute

an authorization.

f) Authorization Validity - It's the number of days an authorization is valid within which the complete order-

delivery-billing-accounting and settlement process should be completed. If the authorization validity expires, a

new authorization is required to be made to complete the remaining transaction process.

g) Settlement - The process of collecting the fund blocked on the credit card of customer during authorization

when a purchase was made.

1.2 Integration

Credit card process is used for C2C Process. It calls for integration of SD module with FI Module.

Sales and Distribution (SD)

Install the SD component to process payment card data in master records, sales orders, and

Billing

Financial Accounting (FI)

Install the FI component to carry out settlement and payment functions to complete your activities in Sales and

Distribution, and process payment card data in accounting documents.

Retail

Install the Retail component to process payment card transactions from point of sales (POS) systems

2. Process Flow

Upon receiving a customer purchase order we start creating a sales order in SAP. The credit card information is

captured in the sales order along with other details. So after the all the required information on the sales order is

filled, we click the save button which triggers the authorization function module. It takes the card holder

information along with the material ordered, quantity, price and goes to the PI server. At the PI server a web

service part of the J2EE engine is invoked to establish a connection with the 3rd party service provider who gets

the clearing house service for authorization.

Chase Paymentech is one of the leading service provider. Chase Paymentech arranges clearing from Providers to

House banks.

At a later time, we create the delivery. The authorization may have expired in the meantime, so the system checks

to ensure that it is still valid. If the authorization is no longer valid, the system tells us to reinitiate authorization in

the sales order. We complete and save the delivery.

When all the items are picked packed, and goods issue is posted, we create a billing document. Here, payment

card data is copied from the sales order, or uploaded directly into the billing document from an external system, as

in the case of point of sale. The system uses the authorizations in the payment card plan to calculate billing

amounts. We process the billing document and release it to Financial Accounting.

When we release the billing document, the system copies the payment card information, billing amount, and

authorization information into the accounting document. In accounting, receivables are posted to a special cash

clearing account for the clearing house. The appropriate settlement process is then carried out according to the

category of the card used. For instance, if a procurement card is used, additional data about the purchase is

submitted for settlement.

3. Card type, usage configuration and processing

3.1Maintain Card Type

To allow different types of cards to be used we need to defined in SPRO –

Sales and Distribution > Billing > Payment Cards > Maintain Card Types

3.2 Assign Payment card Plan Type to sales document types

IMG > Sales and Distribution > Billing > Payment Cards > Maintain Payment Card Plan Types

3.3 Payment Card in Master Data

To quickly and efficiently process sales orders with payment cards, we can store card data in the payer master

record. When we create a sales order, we simply call up a list of cards for the customer using the matchcode on the

payment card number field. The system automatically copies the card data into the sales order for the card or

cards that we choose from this list.

3.4 Creating Sales Order

We create a sales order with a payment card just as we do a standard sales order. Payment card data may only be

entered at the header level, so we cannot enter card data for each item. The card authorization must cover the

entire sales order value. If it does not, the system will warn you to reauthorize.

Sales Order can be created for –

One Payment Card Multiple Payment card

Choose Goto _ Header _ Payment cards to enter card data

.

1. Enter Card Type and Card Number with No Dashes or Spaces

2. Enter the Customer Verification Value or CVV code in the CVV field

3. Enter Cardholder Name as Shown on Credit Card

4. Press ‘Enter’ to Validate, then Green Back Button, and Save

Go to Payment Cards to Verify Authorization Status is Green

3.5 Authorization

When a customer pays for goods and services using a payment card, the card number, the relevant amount and

the payer’s name and address are forwarded to the clearing house for authorization. The clearing house checks

this information, and either authorizes the transaction or turns it down. A successful authorization is a guarantee

of payment. A third party Authorization Software is one of the pre-requisite. Chase Paymentech is one of the leading service

providers. The system relies on settings in Customizing for payment cards to determine how and when to carry

out authorization. Some of the different features which can be allowed by customized –

Preauthorize sales orders

Automatically authorize sales orders

Manually authorize sales orders

Determine which colleagues are permitted to manually authorize sales orders (authorization profile

V_VBAK_AAT)

Run a report to carry out authorizations in batch

We can carry out authorization in the sales order only. Partial authorization of a sales order value is not possible.

Lets put the authorization validity period as 7days. We can maintain this in IMG > Sales and Distribution > Billing >

Payment Cards > Authorization and Settlement > Specify Authorization Validity Periods

If ship date is > 7 days after authorization – credit card reauthorization required

3.6 Payment Card interface to clearing house

The payment card interface is a application software that acts as a bridge between SAP’s R/3 System and your

financial institution’s software. SAP has designed the payment card interface with remote function call (RFC) to

provide us functions to communicate with any of your partners, including clearing houses, banks, credit card

companies, and merchant services.

Authorization Functional Module

SAP can provide solutions for transmitting card data to many major clearing houses and other financial

institutions. Contact your SAP consultant for more information. The standard system includes the function module CCARD_AUTH_SIMULATION that you can use to test the

authorization process before obtaining software from your clearing house, or writing your own. SAP also provides

the testing function CCARD_SETTLEMENT_SIMULATION for Financial Accounting (FI). When you trigger the authorization function, the system accesses the logical destination that you have specified in

Customizing. This is either an SAP internal system, or an external program (RFC). Choose Sales and Distribution >

Billing > Payment cards > Authorization and settlement > Maintain clearing house > Set authorization/settlement

control per account in Customizing to set the function module for authorization.

Authorization data is provided by the R/3 calling function module SD_CCARD_AUTH_CALL_RFC with four tables:

CCAUT - Primary request information CCAUT_H - Additional information for procurement cards at header level

CCAUT_I - Additional information for procurement cards at item level

CCAUT_R - Response message

3.7 Credit Card Settlement

Paymetric website provides history/status of authorisations and settlements

Chase/Paymentech website provides history/status of settlements and Charges

Execute Payment Card Settlement

Execute standard transaction FCC1 to execute payment card settlement.

This transaction retrieves credit card settlement data to be sent to a credit card processor for fund settlement.

Posting and clearing of the credit card account can be done if desired.

Check Items to Forward to Settlement

Click Forward to Settlement

Settlement Accounting Entries

CC Billing

Cr Revenue (100)

Dr Customer 100

Cr Customer (100) Dr Credit Card Receivables (10210XX) 100

Open A/R and Direct A/R

Cr Customer (50) Dr Credit Card Receivables (10210XX) 50

Settlement

Cr Credit Card Receivables (150)

Dr Bank: Cr Card Deposits (1012028) 150

Manual Clearing

Cr Bank: Cr Card Deposits (1012028) (10)

Dr Bank Charges 10

GL account Assignment for settlement

IMG > Sales and Distribution > Billing > Payment Cards > Authorization and Settlement > Maintain Clearing House

> Account Determination > Assign G/L Accounts