FICA Overview

Topics Covered

Topics Covered:
Brief Introduction to SAP ISU
Basic Concepts of FICA
Key Features of FICA
Typical Transactions in FICA
Key difference between SAP R3 & FICA.
QA Session to collect info about where other projects need help.

Terminology
Business Partner
A person or a legal entity with whom you have a business relationship

Contract Account
Manage different financial and billing information (e.g. payment term, payment
method, billing method) of a particular business partner
Contract
Contract is an agreement between business partner and Utility Company to Provide
service
Reconciliation Key
Reconciliation Key is unique Identifier which is used to summarised the posting made in FICA

Terminology
Contract Accounts Receivable and Payable:
Overview
IS-U/CCS as an
integrated component
of the R/3 enterprise
information system

SD
FI

FI

Sales and
Distribution

Finanzbuch haltung

SD

PM/
SM

Customer
Information System

Zentraler
GeschftsGeschftsContract Accounts
partner
Installations- R
External
Receivable
V Consum ption
E & and
leistungen
Entry
Consumption
S ER
Payable (FI-CA)
Entry
Systems
Gerte verwaltung

IS-U
Components

IC

CA

MM
MM

Instandhaltung
& ServiceManagement

VertragsBilling/
Financial Vertragskontokorrent
Invoicing
Accounting (FI-CA) S T O M

External
Sales
Systems

CO

AM
M
M
MM

R/3 Standard
Components
External
Systems

G
IS ,
GIS
CAD,
SCADA

Assets &
Material Managem ent

SAP AG

Overview

Contract Accounts Receivable and Payable

and FI-CA

Contract accounts receivable and payable is the new
FI-CA component
(Financial AccountingContract Accounts Receivable and Payable)

FI-CA is designed as a subledger for customer
processing

Overview

FI-CA has an Open Architecture

IS-U

IS-T

FI-CA
IS-IS-CD

Data Exchange

Other

Open Items,
Posting Information
Information,
Business Processes,
W orkflows

Terminology
IS-IS-CD: Industry Specific Component - Insurance: collections/disbursements
IS-T: Industry Specific Component - Telecommunications

Master Data

Master Data
Business Master Data

Technical Master Data

Business Partner

Connection Object

Contract Account

Installation

Contract

Device

Relationship Business Partner, Contract Account ,Contract

In ideal scenario one Business Partner has one Contract account and one
contract.
But One Business partner can have more than one contract account .
One Business Partner can have One Contract account and one contract
account can have multiple contracts if utility company is involved in providing
more than one service ( For e.g. same company provides Electricity ,Gas).

Overview

Special Features of FI-CA

Suitable for a large number of contract accounts and
documents

Processing of business transactions convenient for clerks

Documents are assigned to business partner accounts and
contract accounts (and depending on the industry, they are
also assigned to contracts)

Summarization of general ledger information (summary
records)

Optimal use of storage space through a special document
structure

Parallel mass runs

Standard processes (for example, posting or paying) can be
changed
R

Ledger ,Sub Ledger

FICA is a sub ledger to SAP R/3 GL.

In SAP R/3 Sub Ledger ( Customer & Vendor A/c) and Ledger ( GL) is linked
via Reconciliation Account.
FICA is customer centric system it is a customer sub ledger.
Customer Related posting are made in to SAP R/3 GL in Summarized form
and the link between FICA and SAP GL is Reconciliation Key

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FICA : Transfer to GL
Process Flow:

ISU (FI-GL)

ISU (FI-CA)

General Ledger

Sub Ledger
Transactions are posted
(automatically) at the customer
level

Reconciliation Key

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Summarized Accounting Postings

(No customer detail)

Overview
Central Objects in FI-CA
BP

Business Partner


Account

Can have several contract accounts

Contract

Contract

Contract Account


Object, for which a customer account is managed in contract

accounts receivable and payable

Usually represents a group of contracts

Contains data, which controls FI-CA such as payment methods,

terms of payment, dunning procedures, ...

Contract (IS-U)

Documents

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Account
Contract

Typical FICA Business Transaction

Document posting

Payments

Refunds

Account maintenance

Document reversal

Interest

Security Deposit

Dunning

Returns processing

Installment Plan

Deferral

Write-off

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Document Posting

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Document Posting

Documents in Contract Accounts Receivable

and Payable

Document

Offsetting
Item

Line Item

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Document Posting
The foundation of contract accounts receivable and payable is the document.
which contains:
Document header
It contains data that is valid for the line items such as the document date, posting
date, and reconciliation key.
Line items
(receivables lines or lines that are entered automatically to the reconciliation account)
They contain all data relevant for payment transactions and dunning, and the
receivables/reconciliation account posted in debit or credit.
Offsetting items (revenue lines)
They contain data for the profit and loss statement, as well as data for sales tax

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Document Posting
Main Transaction/ Sub Transaction
FICA uses combination of Main transaction and sub transaction to handle various
posting.
Standard ISU installation comes with Default set of main and sub which suffices the
standard requirements.
Custom Main and sub can be created to meet additional business requirements
GL Account to which posting has to be made is attached to Main transaction and Sub
transaction
Main transaction Always determines the debtors account
( Most of time the GL account linked to main transaction is Balance Sheet account)
Sub transaction is always linked to the Revenue or Expenses A/c.
( GL account linked to sub transaction is Profit & Loss Account).

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Process Payments

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Payment Process
Customer makes payment for the services provided by the utility company.
Mode of the payment Can be

Cash
Cheque
Internet
Direct Debit
Credit Card

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Payment Process

Automatic and Manual Paym ent Run

Automatic incoming
payments

Collection procedure

Credit repayment

Return

Automatic

Manual
M anual

Payments
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Payment lot

Check lot

Payment at cash desk

Return lot

ISU-Payment Process
ISU-CCS provide standard functionality which can be used to process
payment made in different mode and thru different medium.
Payment In ISU can be accepted using

Payment Lot ( FP05)

Cash Desk ( FPB0)
Cheque Lot (FP25)
Payment Run ( FPY1)

Single payment at a time or one by one payment at the counter can be

accepted using cash desk functionality i.e using transaction ( FPB0 )
Payments in mass or lot can be accepted using payment lot functionality i.e
transaction ( FP05 )
Direct Debit or ECS payment or GIRO payments can be accepted using
payment run functionality.

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Payment Process

Automatic incoming payment:

Incoming payment data from previous systems, financial institutions, or agencies is
processed here. A payment posting for the corresponding business partner is
automatically created. Payments are automatically allocated to one or more
receivables items. Credit items released for settlement are also taken into account.
If an item cannot be allocated, it is possible to post on account at the contract
account level. Manual post-processing is also possible.
Collection procedure:
Payments are handled via bank collection or direct debit from financial institutions or
credit card companies and the corresponding output media are created.
Credit repayment:
Credit is repaid via check, direct debit or postal cash payment order and the
corresponding output media are created.
Returns processing:
An automatic returns processing with workflow link is provided for returned payments
from financial institutions and credit card companies, as well as returned incoming
checks an postal cash payment orders that could not be delivered.

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Payment Lot
Payment Lot Functionality is used in cases where the physical payment is
collected by some external agency or by using some third party software. And
the payment data send by these agencies need to be accounted in ISU.
Payment Lot is also used when many payments is to be processed at a time.
Payment lot can be classified of two type.
Manual Payment Lot
Automatic Payment lot by adopting data using transaction FPB3 ( External Input
File)

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Process Returns

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Process Returns
Key Concepts
Payment Return process involves receiving a file from the bank detailing payment
that could not be transacted and processing it.
Payment Return process involves customers who make payment via
 Check
 Direct Debit

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Process Returns

Payment Return

Cheque Return

Bank Returns

All Cheque
Payment

ECS Or Direct
Debit Payments

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Process Returns

Payment Return process is initiated by the Utility Company bank/s when they send
the return file/ documents.
When Bank sends the data they provide reasons for each return item, each bank
has their own set of codes for each return reason

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Process Returns

The Reason for returns of Bank are mapped to the Internal ISU CCS Return
Reasons.
Each Reason has a Distinct Reason Code associated with it in ISU CCS.
Examples of Reasons for Returns
 Insufficient funds
 Account closed
 Payment Error (Incorrect Account Number)

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Process Returns: ISU Process

Lot Creation
 A Return lot is created for each uploaded file

Lot closing and posting.

 After the creation of lot, the lot is closed and posted i.e. the system will locate the previously
cleared item and reverse the payment

Clarification Worklist
 If item in return lot is unidentifiable it will be saved in the clarification worklist.
 Additional information will need to be specified on the item before it is corrected and posted
 Once this has occurred, it will trigger the posting of a document for return charges and a
reversal of payment documents and the appropriate return activity for each item.
 The Following data is used to clarify the item.

Payment Document Number

Cheque Number
Contract Account Number
Centre Number of Payment
Date of Payment
Amount

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Process Returns: ISU Process

Activities Triggered by the Returns Lot processing.
 The Document is generated automatically which contains the following Line Items: Reversal Line Item for which the return has occurred.
A Line Item for the Charges E.g. Rs. 50.

 A letter is generated for the customer intimating him that the a return has occurred this is
both for cheque and Direct Debit Returns.
In case of specific Return Reasons (e.g. insufficient Fund) a notice under sec 138 is send.

 If the Direct Debit return has happened twice for a customer then the Direct Debit
Arrangement for the customer is removed automatically by the system. (i.e. Incoming
Payment Method removed)

Types of correspondence letters

 For Direct Debit Customers
 Cheque Return Customers
 Notice To Customer.

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Payment Return Process Overview

Start

Error Handling for

Posted Returns
Lot

Receipt of ECS
debit return /
Cheques Return
file from Bank/

Yes

Notice u/s 138 to

be sent to the
party

Yes
Receive and reformat the
soft file recd from bank /
ZCD. Interface program
will upload returns file
into ISU-CCS

Process Return Lot

Item has Error

No

The return amount

will be debited to
party alongwith
Rs.50/- as penalty

Returns for
insufficiency

No

Intimation letter for

returns to the party

Remark for
dishounur will be
printed on the bills

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In case of ECS returns

due to insufficiency,
the facility will be
withdrawn on 2 rd
return

End

Dunning

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Dunning
Dunning is a part of Credit Management
It is the process of identifying and reminding customers about their arrears
(unpaid bills/other debits).
It is used for sending payment reminders and generating disconnection orders

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Dunning
Dunning Procedure
A dunning procedure has a series of levels and with each level there are
associated actions that are used to recover debt
Number of Dunning procedures are created as per the requirement i.e category of
customer/class of customer etc.
A dunning procedure is assigned to the customer depending on the customer type
at the Contract Account Level

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Dunning
Dunning Level
The dunning program assigns dunning levels to overdue items once a specific
number of days in arrears has passed.
The system calculates the days in arrears from the due date or the deferral date of
the open items for dunning, whichever is the greater.
The dunning program automatically assigns the next dunning level to dunned items.
A creditworthiness score is assigned to each dunning level
 Dunning Level 1 20(
 Dunning Level 2 30

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Dunning
Dunning Frequency
Dunning frequency is the minimum number of days that must elapse after a dunning run
before an account can be dunned again.
Dunning Process will be executed daily as a batch process

Dunning Activity
Dunning Activity is the action taken to recover the unpaid amount from the customer.
Types of Dunning Action
 Disconnection Notice Dunning level 1 (Letter sent to customer)
 Disconnection Document (Order is carried out by field workers and closed by the field service coordinator.
)
 Increment Creditworthiness Score

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Dunning

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Dunning

Dunning: Dunning Run Principle

Minimum/Maxim um Amount
Days in Arrears
Dunning Frequency

Charges
Interest

Determination
of new
dunning
levels

Generation
of dunning
activities

Business Partner
Contract Account
Open Items

Generation
of new
dunning
history

Dunning History

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Printing of
dunning
notice

Dunning

Dunning: Influential Factors

Dunning
Procedure

M inimum/Maximum
Amount

Dunning Grouping

Dunning
Process

Creditworthiness

Dunning Frequency

Days in Arrears

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Due Date Deferral

Installment Plan

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Due Date Deferral

Extension or Due date Deferral means the grace days are given to customer
for clearing his dues. Extension can be given on case to case basis or there
can be fixed policy for giving the extension.
Due date extension is given to customer just by changing the Deferral date
Field.
Deferral date is at document level ( i.e Line Item Level )

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Due Date Deferral-ISU Process

In ISU due date deferral is granted just by changing the document using
transaction FPE2.
Using transaction FPE2 field deferral date is populated.
Once the Deferral date is populated. Net due date is ignored and system
looks at deferral date while running payment run. Dunning etc.
This is a standard functionality provided by ISU and no Configuration is
required.

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Installment Plan
Installment plan is a process where by Consumer approaches the utility
company and express his inability to clears his due in one single payment and
request to give his some time where by he can clear his dues in installments.
Installment plan can also be granted in case where there is a mistake on part
of utility company.

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Installment Plan

Installment Plan: Characteristics

Any number of open items can go into an installment
plan.

Interest calculation for installment plans

(Installment plan charges)

(Letter to the customer)

Individual installments can be changed, added, and
deleted

Deactivation of installment plans

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Installment Plan
In s ta llm e n t P la n C a te g o ry
P r e -d e fin a b le in s ta llm e n t p la n c a te g o rie s m a k e c r e a tin g
n e w in s ta llm e n t p la n s e a s ie r.
In s ta llm e n t
In te rv a l

N um ber of
In s ta llm e n ts

In s ta llm e n t P la n
C a te g o ry

R o u n d in g
Am ount

In te rv a l C a te g o ry
R

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Installment Plan

Installm ent Plan: Item Selection

Selection of
open items
for
installment
plan

Manual compilation
from the list of open
items

Simplified Selection

All open items

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Installment Plan-ISU Process

ISU has a standard facility which can be used to grant Installment plan to the
customers.
Using transaction FPR1 Installment plan can be created.

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Maintain General Ledger

48

GL Transfer Key Concepts

Key Concepts are:
 Once daily processing has been completed the transactions are transferred to the General
Ledger.
 To Post these transactions Reconciliation Keys are to be closed and then transferred.
 Transfer to the GL will only occur once the key is closed
 Reconciliation key, Main transaction & sub transaction (identifies the GL account) for every
transaction is to be defined for the purpose of transfer from FI-CA to FI-GL.

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G L A c c o u n t A s s ig n m e n t
- M a in a n d S u b
tra n s a c tio n s
- G L A c c o u n ts (D e b it a n d
C re d it)

B u s in e s s
tra n s a c tio n s in
IS U

F I-C A D o c u m e n ts

D e ta il lin e ite m s

IS U F I-G L

Outbound Interface to
extract balances from
ISU FI-GL

T ra n s fe r fro m F IC A to IS U G L

Text file
containing
GL
Balances

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R e c o n c ilia tio n
K eys

S u m m a ry re c o rd s

C lo s e
R e c o n c ilia
tio n K e y s

R/3 Inbound Interface

to upload balances

R/3 FI-GL

To create a
Request for
Payment
FPE1

To collect the
Payment
FPB0

Report Itemization
for G/L
Documents
from FI-CA
FPG5

To close all the

Reconciliation
Keys
FPG4

To Transfer
FI-CA Posting
to G/L (R/3)
FPG1

Report Data Transfer

to G/L: Evaluation
FPG9

Report Status of
transfer
FPT4

ISU SAP

Transaction Wise Processes

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Report IDoc List

WE02

Report Display
Document
FB03

SAP R/3

Question ???

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