11/13/2017 FI - Contract AP and AR

Contract Accounts Payable and Receivable

The contract accounts payable and receivable (FI-CA) subledger is a extended version of the A/P and A/R components with additional functions for
certain industries such as public utilities, insurance and telecommunications (increased volume of customers). FI-CA has enhanced capabilities for
transaction processing over the internet and for improved EBPP (Electronic Bill Presentment and Payment), together with the integration with the core
components, including SAP CRM. However you will need BI (Business Information Warehouse) as there are limited reporting in F-CA. Datadisk
Mobility will not be using this particular feature however I will best describe how to configure it for your business needs, I will use what is already
configure in the IDES system to explain as much as I can.

I will be covering the following topics

Organizational units
Basic functions
Business Transactions
Integration
Information system

Organizational Units

You need to have the following setup before we can configure FI-CA

Setup company code for FI-CA

Define company code groups
Assign company codes to company code groups

We will use transaction code S_KK4_74002390

pymts on Acc in stand co code - do not select this as you should have the payments on account created in the same company code in which the
bank posting are created, otherwise the clearing postings out of payment on the account will be posted to the standard company code configured
for FI-CA
total invoice - all the charges, including credit memos between two invoice dates will have the same due dates and be printed on the invoice
without calling for any additional communication with the business partner
rec for check encashment - you can select FI-CA or FI-G/L to reconcile the cashing of outgoing checks, if done in FI-CA then only the totals
are posted into FI-G/L, selecting FI-G/L provides the information on individual checks
foreign trade reporting - the system creates a report file according to the national legal requirements for foreign trade
dispute - you can manage the posting in FI-CA company code as dispute cases in SAP Dispute Management

The next step is to define the required company code groups that will be included in FI-CA and also determine the paying company code, we will use
the IMG, define company code groups

You can see that two company code groups have been created, a company code group will include all the FI-CA company codes that will be used for
posting to the contract account.

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Next we assign the company code to the company code groups

Basic Functions

We will activate the additional checks for master data changes to business partners, defining or assigning number ranges to contract accounts
categories, maintaining contract account or business partner relationships, defining account determination characteristics, defining document types to
be used in FI-CA, defining number ranges for individual and mass processing of documents, maintaining main and sub-transactions for non-industry
FI-CA receivables or payables and defining settings relating to open item management, foreign trade declarations, etc.

A contract partner is a business partner to whom you provide the services and bill through a contract represented by a contract contract account,
because we are talking about very large volume of contracts you can improve the system performance in mass runs by configuring additional checks,
we will use transaction code S_KK4_74002225

shadow table - this enables the system to store an extract of the business partner data that will improve performance
last bank details - used if you want the system to always save the last bank details found for a business partner
dependency check - this indicator will enable the system to check dependencies when changes are made to the business partner, dependencies
could be deleting a card account or changing the bank details, etc.
spool aggreg - minimizes the number of spool requests by summarizing them by jobs while processing the print runs for correspondence

The contract accounts are managed on an open item basis, and structured for posting the contract items with the same agreement, the master record
will contain general and specific data, general data is common to and accessed by all the business partners assigned to a particular contract, while
specific data is stored separately. We will first look at the contract accounts number ranges using transaction code FPN2, you can see that I have
already create a few number ranges already

Next we will configure the contract account categories and assign the above number ranges, we will use transaction code S_KK4_74002420

acct category text - self explaining

OP - allow only one business partner to be assigned to contract accounts of this category
CB - indicate that the account is a collective bill account so that line items of different contracts accounts can be grouped together to have the
same dunning and payment procedures. For example for telecom a customer can have a single bill for landline, mobile and internet connection.
ONE - indicate if the contract will be one-time account
INR - Internal number ranges which we discussed above
ENR - external number ranges which we discussed above
BM - if online maintenance of the contract account is required
1C - will restrict you to only one contract for this contract category

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Now we will define the contract account/business partner relationship, the relationship defines the business partners role (such as account holder or
paying party) in the contract account, we will use transaction code S_KK4_74002305

AH - account holder

Next we move onto defining the account determination characteristics, we will use transaction code S_KK4_74002395

We will now configure the document number ranges that will be assigned to document types later, we will transaction FPN1

Next we will configure the document types and assign the number ranges using transaction code S_KK4_74002333

DT- document type which is a two character identifier,

Description - self explaining
NR - number range
cross-company - allow cross company postings
not manually - select if you do not want to use the document type in a manual transaction
negative pstng - select negative posting so that the document type will keep the transaction figures unchanged after reversals, negative postings
except for a periodic reset will allow negative postings only if they occur in the same fiscal year
doc life - the minimum life of the document in the system before you can archive it

The screenshot on the right display the number ranges for mass processing for the document type 01

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If you use FI-CA for non-industry solution then you need to perform the below

Define and parameterize external transactions used for dunning charges, installment requests or interest receivable
Assign the main and sub external transactions to the respective main and sub internal transactions

Use the IMG to configure the above

The next step is the consistency check for transactions so that you can correct any errors before proceeding, we can use the IMG

The next task is to maintain the required G/L accounts for automatic account determination, we need to define the accounts for the application area,
posting area, chart of accounts and company code combinations, we will use the IMG, the right hand screenshot display the G/L accounts for sales and
purchase tax

Regarding the open item management we need to configure two settings, the first is to define the line layout variants for open-item processing which
we will use transaction code FQKPO, check that the SAP supplied line layout is what you need, you can add or remove any of the fields

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The second is to define the default for resetting clearing, you can use transaction code FQZO, for the posting area 1060 you can define a main and a
sub-transaction as the default, which will be used when resetting a clearing item, the clearing document gets the open items with the open items total
equaling the clearing amount. the system posts a new document that offsets open items thus created and generates a clearing for the same amount.

We next need to define a document type for check cashing and a bank clearing account for managing cashed outgoing checks, you also can define void
reasons for checks, we will use transaction code FQ1036

Now we define the bank clearing account for encashment of outgoing checks we will use transaction code FQ1037

Business Transaction

Business transaction configuration is grouped in to payment creation and processing (both incoming and outgoing), item and balance interest
calculation, dunning notices, returns, deferrals and installation plans, write-offs, transfers and reversals, you have already seen some of the
configurations in A/P and A/R, we will start with payments which are related to cash desk and cash journal (handling cash), external payment
collectors (stores, post offices and banks) that will receive payment on behalf of your company, receipt management, definition of G/L accounts,
settings for clearing accounts, payments lots, etc. In payments we will be covering the following

Defining bank clearing accounts for payment lots

Defining clarification account
Defining clearing account for bank deposits
Defining transactions for electronic bank transfer
Defining accounts for payment program

We will use transaction code S_KK4_74002161 to define the bank clearing accounts for payment, check, payment card and return lots, the
configuration screen is easy to configure, select a company code, the bank clearing account, house bank and account ID and then determine what
option you want, payment lot, returns, etc.

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Next we will define the clarification account, you may need a temporary account to park unsuccessful posting to clarify and post them to a contract
account at a later date if you have incomplete payment details, you can use wildcards in the configure so that all company codes, currencies and all
bank clearing accounts are valid, we can use transaction code FQZJ

The next step is to define the clearing account for check deposits, we will use transaction code FQZT

Now we define the transactions for electronic bank statement transfer using transaction code S_KK4_74002160, here we are mapping the external
transaction code of the electronic bank statement with the business transaction types (such as payment and return) in FI-CA.

Next we define the accounts for the payment program we will use transaction code FQZL, this allow automatic postings by the payment program

Interest Calculation

We have already discuss interest calculation in both A/P and A/R, here we discuss the FI-CA specific requirements where we will define the the
interest calculation specifications, activating additional functions in interest calculation and specification for mass run of interest charges. First we will
define the specifications for the interest calculation, we will use transaction code FQI4

Now we will activate the additional functions for the interest calculation, we will use transaction code FQI4Z, you can select yes/no on the screen
details to maintain the additional interest calculation functions.

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The next step is to define the specifications for the mass run, we will use transaction code FQI6

Next we will define the dunning procedure, we will use transaction code S_KK4_74002112, most of the configuration is the same as we discussed in
the A/R dunning section.

Lastly we will now define the returns reasons using transaction code S_KK4_74002249, you maintain the return activities and the return charges for
each of the return codes

Integration

In order to integrate FI-CA with other application components (G/L, SD and CM) you need to make certain definitions, first we will define the posting
specifications for G/L transfer, we will use transaction code FQZE, you need to define for each combination of chart of accounts and company code
the transfer account, posting keys, and the document type for posting the G/L documents in order to transfer the totals record from FI-CA to FI-G/L.

For sales and distribution we need to configure the following first we define posting to FI-CA for customer account groups, use transaction code
S_KK4_74002207, this configuration allows SD bills to be transferred to FI-A/R or to FI-CA for customers belonging to the customer group, by
selecting the checkbox so that the transfer of the billing documents of customers of these selected groups to FI-CA instead of to FI-A/R

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The next configuration of SD is to derive document type from SD billing document data, we can use transaction FQC1210, here you will enter the
document type that will be used when billing documents that are transferred from SD

Cash management planning and forecasting configuration consists of defining alternative planning levels for payment lock reasons, these reasons are
used to indicate why an open item is blocked from payment transactions. We start with defining the alternative planning levels for locks using
transaction code S_KK4_74002202, you first select a planning level and enter a payment lock reason, if you do not enter a payment lock then it is
considered free for payment, a "*" indicates that the system will skip the account without including the same for processing. For each combination of
planning level and payment reason you will select a divergent level that will vary with the payment lock reason. When a payment lock is used with
posting, the system uses the locked level instead of the standard level of the corresponding planning group, if you add the payment lock to the
document later or change or reset the payment lock then the liquidity forecast is correctly accordingly.

Now we will define the alternative planning levels for transactions using transaction code S_KK4_74002189,

Information System

We need to enable recording of the reversals and write-offs (per company code) in special tables and then you need to activate payment processing, the
reversals and write-offs will determine the payment determination, how much to be paid or received in view of these adjustments. Once activated you
can activate reporting for payment processing in the table TFK001ERP, define the appropriate function modules and use reports RFKKPD01 (posting
totals for a given posting month) or RFKKD02 (open items on key date) to generate the reporting data, you can use transaction code
S_KK4_74002192

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