FS310 - FS-CD Collections and Disbursements

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SAP FS-CD (Collections and Disbursements) for insurance - overview

Transcript of FS310 - FS-CD Collections and Disbursements

  • SAP AG 2006

    FS310 Collections/Disbursements

    THE BEST-RUN BUSINESSES RUN SAP

    SAP AG 2006

    FS310FS-CD Collections and Disbursements

    SAP Insurance 600

    2006/Q2

    Material number: 50079623

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    SAP AG 2006

    Copyright

    Copyright 2006 SAP AG. All rights reserved.

    No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.

  • SAP AG 2006

    Target Group

    Participants

    Project team leaders and members responsible for the implementation of Collections/Disbursements

    Users from the processing department

    Duration: 2 days

    User notes: The training document is not a self-teaching program. You only get the full benefit of the training course with the explanations and information provided by the instructor. You have plenty of space in the training material to add your own notes.

  • SAP AG 2006

    Pain Points of Insurance Companies with Invoicing and Payment Processes

    Slow and cost-intensive IT integration due to mergers/acquisitions

    Considerable increase in regulatory requirements

    Increasing customer requirements in services for invoicing and payments

    Large number of systems with redundant invoicing/payment processes

    Outdated monolithic systems

    High transaction costs

    High open premium receivables

    Investment losses due to inadequate reconciliation processes with brokers

  • SAP AG 2006

    Core Competencies of FS-CD

    Cross-line of business subledgerwith consolidated customer view for all invoice and payment processes

    3rd party collection/broker collection for all reconciliation, invoice, and payment processes

    Central component for invoicing

    Flexible standardized integration in SAP- and non-SAP applications

    Processing of large data volumes

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    Data Flow (Without FS-CD)

    Reinsurance/Coinsurance

    Claims Management

    CommissionsPolicy Mgmnt

    SubledgerSubledgerSubledgerSubledgerSubledgerSubledgerCollectionsCollectionsSubledgerSubledger

    Investment

    Payment Process

    Asset Mgmnt

    Procurement

    HR

    Cost CenterReport

    P&LStatutory ReportingReporting

    Controlling

    G/L

    SubledgerSubledger

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    Data Flow (with FS-CD)

    Reinsurance/Coinsurance

    Claims Management

    CommissionsPolicy Mgmnt

    SubledgerSubledger

    Investment

    AssetMgmnt

    Procurement

    HR

    Cost CenterReport

    P&LStatutory ReportingReporting

    Controlling

    G/L

    SubledgerSubledger

    Payment Process

  • SAP AG 2006

    Course Overview FS310

    Course Overview

    Master Data

    Postings & Documents

    Correspondence

    Clearing & Payment Lots

    Payment Program

    Returns

    Dunning

    Installment Plans

    Broker Collections

  • SAP AG FS310 1-1

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    Master Data in Collections/Disbursements (FS-CD)

    Background to the SAP Business Partner concept

    Business partners, contract accounts, insurance objects

    Control parameters on master data level

    Master data interfaces

    Contents:

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    Process business partners, contract accounts and insurance objects

    Set control parameters for the master data and explain their effects on processes

    Describe and create master data models in FS-CD

    At the conclusion of this unit, you will be able to:

    Master Data: Unit Objectives

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    Master Data

    Course Overview

    Master Data

    Postings & Documents

    Correspondence

    Clearing & Payment Lots

    Payment Program

    Returns

    Dunning

    Installment Plans

    Broker Collections

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    A new customer concludes multiple insurance policies with ABC Insurance. The data is included.Invoicing-relevant data is transferred to FS-CD.

    Master Data: Business Scenario

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    SAP for Insurance

    FS-CD

    Broker/3rd Party Collection

    Policy Management(FS-PM)

    Commissions(FS-ICM)

    Claims Management(FS-CM)

    Contract account

    Insurance Object

    Central subledger Invoicing Coinsurance Payments Interest calculation Dunning ..

    BusinessWarehouse

    (BW)

    Correspondence

    Standard Interfaces

    Controlling

    Organization (PD-ORG)

    Business Partner(FS-BP)

    Functions/Processes

    Reinsurance(FS-RI)

    Profit Analysis

    Bank

    Cash Management

    G/L

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    Master Data for Collections/Disbursements

    Operational Insurance Systems

    Business Partner

    Policies/Contracts

    Claims Management

    Commission

    ...

    Policy

    POL4711

    ABC Insurance

    Collections /Disbursements

    Business Partner

    Contract Account

    Insurance Object

    The business partner master record contains data that is required for the management of business transactions, including addresses, bank details, telephone number(s), and application- and customer-specific enhancements.

    Postings for receivables or payables are always assigned to one business partner and one contract account.

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    Business Partner: Requirements 1

    Requirements SAP Business Partner BP at center of business

    interest, central view of BP

    BP takes part in different business processes

    1 business partner (business partner role MKK)

    Functions: Correspondence recipient, dunning recipient, alternative payer, account holder, and so on

    Business partners are at the center of business transactions, and thus at the center of business interest. All relevant information about a business partner must therefore be available quickly in consolidated form. This means that a central view of a business partner over all areas is needed.

    A business partner exists only once, regardless of the business transaction in which he or she is participating.

    A business partner can come into contact with a company in several situations. The information required on the business partner may vary, depending on the specific business processes in which a business partner participates.

    The business partner in FS-CD in created in the MKK role. Other business roles can be assigned to the MKK role.

    The technical conversion of a specific function for a business partner is done by transferring the business partner ID to a control field in the contract account/insurance object.

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    Business Partner: Requirements 2

    Requirements SAP Business Partner Company-specific information

    on a BP

    Company-specific structure of BP screens

    Cooperation with applications in existing system landscapes

    Extensibility (release-independent)

    Configurability (release-independent)

    Communication (interfacing) using predefined methods (BAPIs)

    Many companies require specific information about a business partner. SAP Business Partner provides the central attributes of a business partner (such as name, addresses, bank details), as well as the infrastructure for adding specific attributes. Downstream developments (R/3 applications, development partners and customers) can enhance SAP Business Partner to include other attributes, without the need for modifications (release-independent).

    Business partner master data screens can be adapted to suit company-specific requirements. You can select the information that is available for a business partner, according to your requirements. Users can make use of the Visual Configuration Tool (VCT) to configure the Business Partner screen with "drag and drop".

    Interfaces guarantee the integration of the business partner, and are required for problem-free cooperation with applications in an existing, heterogenous system landscape. SAP Business Partner offers corresponding BAPIs (Business Application Programming Interface) for communication with existing applications. These BAPIs enable other applications to access data from the SAP Business Partner.

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    SAP BP as the Central Anchor

    Neutral

    Persons, groups, organizations

    Integration by means of business processes

    Claimant

    Payer

    Policyholder

    Payment Recipient

    Correspondence Recipient

    Broker

    Business Partner

    Neutral application data, such as name, address, bank details and payment cards, is created in the business partner master record. Special requirements are fulfilled for business partners that are organizations, groups or individuals.

    In addition, SAP Business Partner enables an open infrastructure, allowing you to create application-specific attributes for a business partner. SAP BP delivers defined interfaces, which can be used to link the BP attributes from various applications. Existing BP assignments within SAP can then be integrated gradually into SAP BP.

    The business partner model means that the business partner (BP) can be managed as a central data object.

    You define the following data for the business partner:

    Name (academic title, initials, correspondence language)

    Address (street address, c/o, reasons for non-delivery)

    Communication (fax, e-mail, standard communication type)

    Address overview (standard address, correspondence address, dunning address)

    Personal data (gender, marital status, employer)

    Relationships (is contact person for, is married to)

    Payment transaction data (bank details, payment cards)

    Business partner lock

    Tax numbers

    Notes

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    Business Partner Category

    Business Partner Categories

    OrganizationGroupPerson

    The term business partner category is used to classify business partners as people (married couple, executive board etc.), groups, or organizations (legal entities), with whom an insurance company has a business relationship.

    The business partner in the Collections/Disbursements (FS-CD) system normally represents the person or the legal entity for whom incoming and outgoing payments are processed. In collections, they are the policyholder or the payer of the premiums, and in disbursement, they are the beneficiary.

    The organization consists of units such as enterprises, departments in an enterprise, or associations.

    A legal entity or a part thereof can also be mapped as a business partner. The umbrella term for this is "organization". Parts of a legal subject are, for example, subsidiary companies or purchasing departments.

    When you create a business partner, you must select a business partner category. The assignment of a business partner category is static and cannot be changed once a business partner has been created.

    The business partner category specifies which fields are available for data entry. Thus, for example, when you create a business partner as an organization, you need to specify the legal form, whereas for a person, you need to enter the first name, last name, and gender etc.

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    Business Partner Categories: FIelds

    Different fields are available, depending on the business partner category

    Organization

    Person

    TitleFirst NameLast NameBirthplace...

    Name

    TitleName 1Name 2Legal FormYear Established...

    Name

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    Business Partner Type

    Business Partner Types

    Corporate Customers

    Organizations / Associations

    Private Customer

    The business partner type controls the field status definition (which fields in the business partner master record are obligatory, optional, hidden and visible), when creating a business partner in Collections/Disbursements. Business partner types can be used to group business partners, according to the specific requirements of a company.

    When a business partner is created, the "business partner type" appears on the initial screen and the control data screen. When a business partner is displayed or changed, this field is then in the control data.

    Business partners can be freely defined.

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    Objects Per Business Partner

    Telephone Internet Address

    0

    1

    0

    0

    n

    n n

    n

    0

    n

    0

    n

    Business Partner

    Payment Cards Bank DetailsAddresses

    Fax

    You can assign various addresses for various functions to a business partner. These addresses can also be classified according to address types (such as delivery address, correspondence address)

    One address for a business partner is marked as the standard address.

    Postal data and information about various communication types are assigned to the address. You can maintain various communication types for every address. (telephone, fax, internet address, pager, printer, remote mail, secure store & forward, telex, teletex, URI/URL/FTP, X.400).

    You can create multiple international address versions for every address.

    The system uses the SAP regional structure to check that the address data is correct. You can integrate software from external providers to carry out more address checks.

    For more information on how to use and manage addresses, see the documentation for Business Address Services.

  • SAP AG FS310 1-14

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    Contract Account

    General Data General/Payt Dunning/Corr. Contract acct no. Contract acct cat. Name Account view Account

    Management ...

    Account relationship Payment methods Alt. payer or payment

    recipient Bank details ID Locks ...

    Correspondence variant

    Invoicing Type Dunning Variant ...

    Business Partner

    Contract Account

    A contract account within the Collections/Disbursements system is a subledger account, to which postings are made for open items. Different contract accounts permit various groupings for the business partner's posting data.

    General data (such as contract account number, contract account category) is in the contract account (FKKVK table), other data is in the contract account-business partner relationship (contract account relationship) (FKKVKP table).

    The contract account contains many control parameters, which control and influence the business transactions.

    Documents, which refer to insurance relationships, are posted to the account.

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    Premiums and Claims Account

    Broker Account

    Commission Account

    Contract Account Categories: Examples

    Clarification Account (Broker)

    Account for Deposit Contract

    Claims Payment AccountPremiums

    Account

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    Contract Account Categories: Differentiation

    Number ranges for internal and external number assignment

    Only one business partner permitted per contract account?

    Only one insurance object permitted per contract account?

    Online maintenance prohibited?

    Account contains deposit contracts?

    Clearing on open account basis with balance carryforward(accounts for deposit contracts)

    Account creation variants (to determine default values for account creation)

    You differentiate between contract account categories in the Implementation Guide.

    You can use the assignment of an account creation variant to fill fields with fixed values when creating a contract account.

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    Insurance Object/Relationship

    Parameters are set for every insurance relationship

    Coll./Disb. Broker Correspondence Payt Plan Broker Collections

    Insurance RelationshipBusiness PartnerInsurance Obj.

    An insurance object can be an insurance policy, a broker contract, a claim number, a commission contract, and so on.

    An insurance relationship is the link between an insurance object and a business partner. An insurance object cannot be created in isolation. An insurance object can only be created in relation to a business partner.

    Broker data is required if a broker is to be used to manage and/or invoice the insurance object.

    Payment plan data is required for the execution of payment plans.

    Broker collections data is required if the insurance object is a broker contract.

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    Insurance Object Categories (Internal)

    Internal insurance object categories are hard coded in the system. You can define any number of your own (external) insurance object categories, which you assign to internal insurance object categories.

    Object Category Object Category: Description

    10

    20

    30

    40

    Insurance policy

    Broker contract

    Commission contract

    Claim number

    50 Deposit contract

    Insurance object categories determine which tab pages and fields appear when creating an insurance object. Internal insurance object categories are hard-coded, and can not be changed.

    Insurance object categories control certain processes, such as broker collections.

    You can not change the assignment of an insurance object to an object category.

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    Ins. policy030104

    External Insurance Object Categories: Default Values

    ExplanationPlanning GroupIncoming Payment MethodOutgoing Payment Method

    Default Values for Ins. Obj. Cat. Creation

    + every field in insurance object master data

    Internal Ins. Obj. Cat. = 10

    External Ins. Obj. Cat. = LV

    In the Implementation Guide, you assign your own (external) insurance object categories to the (internal) insurance object categories delivered by SAP.

    In the Implementation Guide, you can define default values for the creation of an insurance object.

    In the Implementation Guide, you also decide whether an insurance object is included in balance interest calculation (relevant for deposits, for example), or whether interest is calculated per item for the documents for an insurance object.

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    Automatic Account Creation

    When you create or change an insurance relationship, you can:

    Automatically create a new account

    Automatically assign an existing account

    You define default values for the creation of a new account - at least for the required entry fields for this account

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    Account Creation Variants

    Rule 1, lifeExplanationContract Account CategoryAccount ViewAccount ManagementClearing CategoryCoverage Check IndicatorResponsible Company CodeTolerance GroupAccount RelationshipRuleIns. Obj. Parameters Active

    Default Values for Automatic Account Creation

    + every field in insurance account master data

    Creation Variant 01

    03Collective accountOpen items01

    V00100010101

    If you use an account creation variant when creating an insurance object, the system uses the default values for the creation variant from Customizing, in order to create a contract account.

    All entries from the fields that are available for the insurance object and the contract account, and which were defined for the object, are automatically copied to the contract account during creation.

  • SAP AG FS310 1-22

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    Account Creation Variants: Rules

    1. Every new insurance relationship is given a new contract account.

    2. There is just one account for each insurance relationship.

    3. There is just one contract account for each business partner, regardless of the number of insurance contracts.

    4. There is just one account for a claim object and the associated insurance contract.

    ... (9 rules in total)

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    Controlling Using Master Data Attributes

    Process master data parameters for controlling business transactions

    At the conclusion of this topic, you will be able to:

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    Control Parameters for the Account/Ins. Rel.

    Control parameters influence processes in FS-CD, such as dunning, correspondence, payments

    Control parameters for the contract account and the insurance relationship (dunning variant, for example)

    Control parameters for the contract account: Account view, account management, clearing category, and so on

    Control parameters for the insurance relationship: Broker, broker collections, payment plan, and so on

    Parameters for the document override the parameters from the master data (such as the payment method)

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    Account: Account Management

    Accounts managed on OI basis: Clearing on May 1 (no partial clearing)

    Open account basis: Open account clearing on May 1

    1500 1.4. 4714

    Contract account

    500 01.5. 8600

    1000 2.5. 4799(due date =current date +1)

    Contract account

    1500 1.1. 47111500 1.2. 47121500 1.3. 47131500 1.4. 4714

    Contract account

    5000 01.5. 8600

    1500 1.1. 47111500 1.2. 47121500 1.3. 47131500 1.4. 4714

    Contract account

    5000 10.4. 8600

    Account Management

    Open items: Every item is individually analyzed and cleared The majority of accounts in FS-CD are managed on an open item basis.

    Open account: The balances of the accounts are updated. Interest calculation and clearing only takes place on balance level. Clearing only takes place automatically in the Open Account Clearing transaction. A new document is created when clearing takes place. Example: Deposit accounts

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    Account: Account View 1

    Individual View

    Contract Account

    Insurance Relationship 1

    Business PartnerIns. Object

    Insurance Relationship 2

    Business PartnerIns. Object

    Company

    InvoiceCompany

    Invoice x y z

    Company

    InvoiceCompany

    Invoice x y z

    Account view

    Individual view: All insurance relationships that are assigned to an account are settled separately. One invoice and one debit memo are created for each insurance object, for example.

    Collective view: There is one invoice and one debit memo for insurance relationships that are assigned to an account.

    Processes: Invoicing, payment program

    You can also settle multiple insurance relationships with a contract account, by using extended grouping for the payment run.

    To allow the settlement of multiple insurance relationships with a contract account for the collective view, the correspondence/payment parameters for the contract account must be active.

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    Account: Account View 2

    Collective View

    Contract Account

    Insurance Relationship 1

    Business PartnerIns. Object

    Insurance Relationship 2

    Business PartnerIns. Object

    Company

    InvoiceCompany

    Invoice x y z

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    Insurance Relationship: Broker

    Broker Correspondence Payt PlanColl./Disb.

    Coll./Disb.Broker ContractBroker

    Valid fromInsurance Policy Partner Partner Description

    35000005 Robert Cummings/ D-3200603/09/2002Auto - 35000005

    Open items fromResponsible from

    01/01/200301/01/2003

    25000003 - 0125000003

    X

    toto

    31/12/200331/12/2003

    Broker Broker Contract Coll./Disb.

    Resp. from

    01/01/2003

    to Open items to

    31/12/2003 01/01/2003 31/12/200325000000 - 0125000003

    History

    X

    Difference between direct collection and broker collections

    If you manage an insurance relationship with a third-party (broker), define data for the broker.

    Business partner ID for broker

    Broker contract

    Collection/disbursement by broker?

    Broker responsible from/to

    Open items paid by broker from/to

    Process: Broker report

    You can find more detailed information about brokers and broker collections in the Broker Collections chapter.

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    Insurance Relationship: Broker Collections

    Correspondence Payt Plan Payt Plan Item Broker CollectionsColl./Disb.

    Commission Contract

    Interval ItemShift

    Reporting IntervalReport Category

    Clarification Account

    Valid fromBroker Contract Partner Partner Description

    25000000 Bob Broker/London03/09/200225000000 - 01

    25000000 - 01 - CS

    Due date at end of period0

    MonthlyPeriodic Report Request (Actual Broker)

    Categories

    PremiumX ClaimsX Commission CostsXX

    Post After Payment Receipt

    Posting Specifications

    ...

    More Master Data

    Report Settings

    ...

    If you manage insurance relationships with a third-party (broker), create a broker contract (internal insurance object category 20) for the broker.

    For the broker contract, you define:

    Settings for the broker contract

    Commission contract for the broker

    Subledger clarification account for the broker

    Categories for which the broker is responsible (such as premium, commission).

    Process: Broker report

    You can find more detailed information about brokers and broker collections in the Broker Collections chapter.

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    Insurance Relationship: Payment Plan Item

    Broker Correspondence Payt Plan Payt Plan ItemsColl./Disb.

    Payment Plan Change History

    Payment Option Key

    Payment Plan Key

    Valid from

    Deferral Base Per.

    Deferral Base Days

    Grouping Category

    Summarization Cat.

    Payment Plan Lock

    Reserve and Record Payment on Account

    LI

    Monthly

    Jan 1, 2003

    Payment Option Key Payment Plan Key Valid from

    LI Monthly 01/01/2003

    LI Quarterly 01/01/2001

    Algorithm Key

    When you define an insurance relationship, define a payment plan and at least one payment plan item.

    The payment plan and payment plan item are the basis for posting document in FS-CD.

    A payment plan contains controlling parameters for payment plan items (such as payment plan key, payment plan lock).

    A payment plan item contains document-relevant data (such as amount, account assignments).

    Process: Execute payment plans

    You can find more detailed information about the payment plan and payment plan item in the Postings and Documents chapter.

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    Insurance Relationship: Claim Data

    Reference

    Claim Number

    Business Partner

    Ins. Object

    Insurance Relationship

    Ins. Object

    Business Partner

    Ins. Object

    When you create an insurance relationship for processing claims (claim number, internal insurance object category 40), define the insurance relationship to which the claim number refers.

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    Control Parameters in Account/Insurance Relationship

    Most control parameters can be for the contract account as well as for the insurance relationship

    The parameters affect the payment form for a business partner, dunning, correspondence or interest calculation, for example

    In the insurance relationship, you define whether the parameters are valid for the contract account or the insurance relationship (separated into correspondence parameters and parameters for payment, dunning, interest calculation and so on)

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    Parameters: Payment Methods 1

    Check

    Bank Transfer

    Standing Order

    ...

    Direct Debit

    Bank Collection

    Deposit Clearing (Internal Clearing)

    Payment Cards

    Incoming Payment Method

    ...

    Set: Initiated Internally Not Set: Initiated Externally

    In the incoming/outgoing payment method, you define how customers execute their incoming payments and how you make outgoing payments to customer

    If you choose the value 'space' as the incoming payment, the customer receives and invoice and initiates a payment (such as a bank transfer)

    Processes: Invoicing, payment lot

    If you fill the incoming payment method with other values, you collect the due amounts (by debit memo procedure, for example)

    Dunning does not take place for accounts/insurance relationships for which the incoming payment method is filled

    Processes: Payment program

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    Parameters: Payment Methods 2

    Payment Methods: Other Parameters

    Outgoing payments (bank transfer, check, standing order and so on): Payment program

    Alternative payer/payment recipient

    Payment partner/payment account

    Clearing account: Internal clearing

    Other data, if required: Bank details ID, address

    Outgoing payments are processed exclusively by the payment program.

    You can define an alternative payer/payment recipient, if collections are to be made from a third-party account or if disbursements are to be made to a third-party.

    You can process items with a payment partner/payment account (incoming and outgoing payments).

    To execute incoming/outgoing payments, you may require bank details ID and other data from the business partner master record.

    Clearing account: Internal clearing of receivables (such as deposits)

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    Parameters: Dunning Variant

    In order to be able to dun unpaid receivables, define a dunning variant

    A dunning variant groups dunning procedures together

    A dunning procedure contains the rules that are used for dunning (such as the definition of the dunning due date, time period between dunning notices, dunning levels, dunning activities)

    Dunning only takes place for accounts/insurance relationships for which the incoming payment method has not been entered

    Process: Dunning proposal run, dunning activity run

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    Parameters: Correspondence

    Recipient for Individual Correspondence TypesCorr. Type

    Correspondence to Alternative/Additional PartnersRecipient

    Invoicing TypeInvoicing Control

    Invoicing Base Date

    Correspondence Variant

    Contract Account/Correspondence

    Corr. Dunning Variant

    Collective Invoice Account

    Activity

    Collective Invoice Partner

    Corr. Description

    Corr. Role

    Alt./Addtl Recipient?

    Correspondence Recipient

    Partner Description

    Activity

    ... ... ... ...... ... ...

    A correspondence variant groups together periodic correspondence that you want to send to a business partner (such as invoices or tax office certificates)

    In invoicing control, you define which invoice you send to a business partner.

    Collective invoice partner/account: Invoice processing with another business partner and another contract account

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    Parameters: Other (Selection)

    Interest Calculation

    Locks

    Notes

    Interest Calculation

    Settings for posting debit/credit interest (for each item or balance)

    Processes: Item interest calculation, balance interest calculation

    Locks

    You can lock accounts/insurance relationships for individual processes (such as outgoing payments, dunning notices)

    Notes

    You can define notes for an account/an insurance relationship

  • SAP AG FS310 1-38

    SAP AG 2003

    Control Parameters: Summary

    Insurance Object

    n

    m

    m

    n

    1n

    Insurance Relationship

    Business Partner

    Payment control

    Payment card/bank details ID

    Interest calculation

    Correspondence control

    Dunning variant

    Account relationship

    Account view

    Tolerance group

    Addresses and communication

    Address usage

    Bank details

    Payment cards

    Relationships

    Payment control

    Payment card/bank details ID

    Interest calculation

    Correspondence control

    Dunning variant

    Broker

    Broker collections

    Payment plan/payment plan item

    Posting data:Document header and line item

    Many control parameters can be overwritten or extended with data that is contained in documents.Payment methods or dunning procedures can be defined for the document, for example.

    Contract Account

    Contract Acct Relationship

    A range of parameters exists for the insurance object and for the contract account. For the insurance object, you set whether it is the parameters for the insurance object or contract account that are to be used.

    The following settings are only possible for the contract account, for example: Account relationship, tolerance group, account view, account management, clearing category.

    The following settings are only possible for the insurance object, for example: Broker, broker collections, payment plan, payment plan items.

  • SAP AG FS310 1-39

    SAP AG 2006

    FS-CD Master Data Model

    Business Partner (BP1)

    Peter Goldstein

    504030201

    Insurance Relationship

    Contract Account

    Relationship

    Contract Account

    (CA1)Contribution Account

    (Life)204080160320

    Insurance Object (IO1)Capital Life Insurance

    LV47110815 A contract account relationship exists between Business Partner (BP1) and Contract Account (CA1). The business partner is the holder of the contract account, for example.

    There is an insurance relationship between Insurance Object (IO1) and Business Partner (BP1).

    The insurance relationship (IO1 BP1) is assigned to the contract account (CA1).

    Insurance Relationship Basics An insurance relationship must be assigned to just one contract account. Assignment to a contract

    account can be changed, meaning that you can define a contract account that differs from the one in the insurance relationship.

    A contract account relationship (as the holder or as another partner) must exist between the business partner for which the insurance relationship exists, and the contract account - which is defined in this insurance relationship. This means that the business partner does not necesarily have to be the holder of the contract account.

    Various insurance relationships (for a business partner) can be assigned to a contract account.

    If various insurance relationships already exist, a separate contract account can be assigned to each one.

  • SAP AG FS310 1-40

    SAP AG 2006

    Multiple contract account relationships can exist in parallel for various business partners for a contract account. However, it is not possible to create contract accounts without a contract account relationship.

    A contract account must have a contract account relationship with just one business partner, with the "Is Holder" relationship category. Contract account relationships can exist as "other partners", in parallel with multiple business partners, for a contract account.

    On the other hand, only one business partner can be the holder of the contract account (contract account relationship category). The holder of a contract account can change, meaning that the contract account relationship "Is Holder" for the contract account can be changed to the "Is Other Partner" relationship category for a business partner - if another business partner assumes the "Is Holder" contract account relationship.

    Business Partner (BP1)Peter Goldstein504030201

    Contract Account (CA1)

    Contribution (Premium) Acct (Life)

    204080160320Contract Account

    Relationship 1(Holder)

    Business Partner (BP2)Linda Seiler315263742

    Contract Account Relationship 2(Other Partner)

    1 CA with Multiple Contract Account Relationships

    A business partner can have multiple parallel contract account relationships for various contract accounts.

    A business partner can be both the holder or "other partner" of multiple contract accounts in parallel.

    Different relationship categories can be defined in Customizing.

  • SAP AG FS310 1-41

    SAP AG 2006

    An insurance relationship is always composed of exactly one insurance object and one business partner.

    A business partner can have multiple parallel relationships to different insurance objects, meaning that there can be multiple insurance relationships to the same business partner.

    Business Partner 1Peter Goldstein

    Insurance Object 1Auto Ins.: KFZ987654

    Insurance Object 2Endowment Ins.: LV47110815

    Insurance Object 3Health Ins.: KV123456

    Three Insurance Relationships

    1 BP with Multiple Insurance Relationships

    An insurance object can have multiple, parallel relationships to various business partners, meaning that multiple insurance relationships can exist for the same insurance object.

  • SAP AG FS310 1-42

    SAP AG 2006

    Business Partner 1Peter Goldstein

    Three Insurance Relationships

    Contract Account 1P&C Insurance

    Two Insurance Account Relationships

    Insurance Object 1Auto Ins.: KFZ987654

    Insurance Object 2Risk Life Ins.: LV58221926

    Insurance Object 3Capital Life Ins.: LV8060504

    Contract Account 2Life Insurance

    One Contract Account for Each Line of Business

  • SAP AG FS310 1-43

    SAP AG 2003

    Master Data Relationships: Summary

    n

    m

    n

    1n

    Insurance Relationship

    m

    Contract Account

    Business Partner

    Insurance Object

    Contract Acct Relationship

    The following relationships exist between business partner, contract account and insurance object:

    A contract account is assigned to just one business partner as the account holder.

    A contract account, for which an account holder is defined, can be assigned to another business partner that is not the account holder.

    Multiple contract accounts can be assigned to a business partner.

    An insurance object can be assigned to multiple business partners. More than one insurance object can be assigned to a business partner.

    Just one contract account is assigned to each unique business partner/insurance object relationship (insurance relationship). Multiple insurance relationships can be assigned to a contract account.

  • SAP AG FS310 1-44

    SAP AG 2004

    Master Data: Unit Summary

    Process business partners, contract accounts and insurance objects

    Explain and set control parameters for master data

    Describe and create master data models

    You are now able to:

  • SAP AG FS310 1-45

    Exercises

    Chapter: Master Data Topic: Master Data in Collections/Disbursements

    (FS-CD)

    At the conclusion of these exercises, you will be able to:

    Analyze master data in Collections/Disbursements

    Set control parameters

    ABC Insurance has a new customer, who wants to insure a car and build up capital for pension schemes. The customer concludes auto liability insurance, partially comprehensive auto insurance and life insurance. The appropriate master data was created in FS-CD.

    Access Collections/Disbursements (FS-CD):

    Insurance Collections/Disbursements The first group has group/place number 11, the second group has group/place number 12, and so on.

    1-1 Display Business Partners

    Master Data Business Partner Display Check the data for your business partners.

    Enter the following data: BP# (# = your group/place number). How many addresses does the business partner have? Are there addresses that have a special usage?

    __________________________________________________________ Have bank details been defined, and if so, how long are they valid for?

    __________________________________________________________

    Return to the SAP Easy Access menu.

  • SAP AG FS310 1-46

    1-2 Display Contract Account

    Master Data Contract Account Display Check the data for your contract accounts. Enter the following data under the business partner: BP# (# = your group/place number, such as BP11) and select the first account.

    Which account view is set up for your contract accounts? What effect does the account view have on the payment of items?

    __________________________________________________________

    __________________________________________________________ __________________________________________________________

    Which company code group and which standard company code are set up for your contract accounts?

    __________________________________________________________ __________________________________________________________

    What are the effects caused by defining a clearing account for a contract account? Which dependencies exist for other fields, if you define a clearing account?

    __________________________________________________________ __________________________________________________________

    __________________________________________________________

    Check whether an invoicing type has been entered for your accounts. Can items that have already been invoiced (items for which an invoice has already been sent and which have not yet been cleared) and statistical items, be included in an invoice? Which insurance objects are settled via these accounts?

    __________________________________________________________

    __________________________________________________________ Return to the SAP Easy Access menu.

  • SAP AG FS310 1-47

    1-3 Display Insurance Object

    Master Data Insurance Object Display Check the data for your insurance objects.

    The following insurance objects are created:

    INSO#1: Auto liability (such as INSO111 to INSO191 and then INSO201)

    INSO#2: Auto partially comprehensive (such as INSO112)

    INSO#3: Life insurance (such as INSO113)

    BP#PP: Auto with payment plan (such as BP11PP) Collections/Disbursements and correspondence parameters can be active for the insurance object as well as the contract account. Make a note of the insurance objects for which the parameters on the insurance account are active, and those for which the parameters on the contract account are active.

    __________________________________________________________

    __________________________________________________________

    __________________________________________________________

    For which insurance object is an incoming payment method defined? When was this insurance object created? What has been changed since then?

    __________________________________________________________ __________________________________________________________

    __________________________________________________________

    Return to the SAP Easy Access menu.

  • SAP AG FS310 2-1

    SAP AG 2003

    Postings and Documents

    Contents: Data transfer

    Integration

    G/L account determination

    Document structure (main and subtransactions)

    Integration into G/L

    Account balance display

    Payment plan

  • SAP AG FS310 2-2

    SAP AG 2003

    Postings and Documents: Unit Objectives

    Analyze documents

    Explain and configure integration and G/L account determination

    Post and configure payment plans

    Display and analyze the account balance

    At the conclusion of this unit, you will be able to:

  • SAP AG FS310 2-3

    SAP AG 2006

    Postings and Documents: Course Overview

    Course Overview

    Master Data

    Postings & Documents

    Correspondence

    Clearing & Payment Lots

    Payment Program

    Returns

    Dunning

    Installment Plans

    Broker Collections

  • SAP AG FS310 2-4

    SAP AG 2003

    Postings and Documents: Business Scenario

    ABC Insurance wishes to post various business transactions. The correct G/L accounts are to be automatically determined and posted to, and the data from the Collections/Disbursements system is to be reconciled with Financial Accounting.ABC also wishes to be able to display the account balance and postings at any time.

  • SAP AG FS310 2-5

    SAP AG 2003

    Subledger and Integration

    Business Partner

    Policy Mgmt

    Commission System

    Claims Mgmt

    Calculating Systems

    Invoicing System

    Subledger

    FS-CDColl. / Disb.

    SAP R/3 General Ledger

    Bank

    Profitability Analysis

    Cost Center / Profit Center

    Cash Management

    Collections/Disbursements is a settling system, while Policy Management, Claims Management and other operational systems are calculating systems. The calculating operational systems calculate premium or claim payments, and forward the values to Collections/Disbursements.

    Documents can be posted manually or created automatically in FS-CD (charges or interest, for example).

    A subledger account (contract account) exists for every accounting document.

    G/L accounts are determined automatically by G/L account determination.

  • SAP AG FS310 2-6

    SAP AG 2003

    Data Flow Overview

    Strategic Goals

    Business Information Warehouse (BW)

    Insurance Operational Systems

    Collections / Disbursements

    Calculating Systems Invoicing System

    MM (Material Mgmt)

    HR (Human Resources)

    FI-AA (Asset Accounting)

    CO (Controlling)

    FI-GL (General Ledger)FI-SL (Special Ledger)

    TR-CM (Cash Mgmt)

    Financial Asset Mgmt

    Batch

    Online

    Payments

    Premiums

    FS-CD

    Claims

    Products

    Policies

    Business Support Systems

    FI/COInter-face

    Subledger documents are not posted singly in the G/L, but are summarized and written as totals in the G/L. This technology reduces the amount of data that goes to the G/L, and improves performance.

    Every totals record is provided with a reconciliation key, which is used as a reference from the G/L to the subledger.

    The interface to Cash Management (TR-CM) performs differently. Individual items are updated in an online procedure there. This method guarantees a up to date view of the liquidity forecast and cash management.

  • SAP AG FS310 2-7

    SAP AG 2003

    Documents: General Conditions

    Business Normal, proper postings

    Period-based management of G/L accounts

    Account balance for contract account

    Technical Storage space

    Performance

  • SAP AG FS310 2-8

    SAP AG 2006

    Typical Documents

    Subledger General Ledger

    Contract account Receivables account

    Cash receipt account

    Revenue account

    100 100

    100

    100

    100

    100Payment

    Invoice

    Typical documents in subledger account are the invoice / debit entry and the payment

  • SAP AG FS310 2-9

    SAP AG 2003

    Document Structure

    Company code

    Business partner

    Contract account

    Insurance object

    Receivables/payables

    Amount

    Due date

    Product group

    Insurance type

    Main/subtransaction

    Company code

    Revenue/expenses

    Amount

    Additional account determination for statutory reporting

    Main/subtransaction

    Profitability segment

    Order

    Cost center

    Document number

    Reconciliation key

    Document type

    Document currency

    Document date

    Posting date

    BP Item

    Document Header

    G/L Items

    A subledger document contains a document header (DFKKKO table), business partner items (DFKKOP) and G/L items (DFKKOPK) (P&L). The header contains the unique document number, the document type as an attribute, and the currency key and other data.

    Every document contains data that is valid for all items. This includes the document type, document fate, entry date, person who entered data, reconciliation key, and so on (document header).

    All postings items must contain the information that is required by G/L accounting.

    Posting items for the G/L also contain information for controlling.

    Posting items for the subledger contain information for managing the contract account and the open items.

  • SAP AG FS310 2-10

    SAP AG 2003

    Documents: Clearing Documents 1

    Every open item, meaning every receivable or payable, must be cleared at some point

    Clearing indicates that the receivable or payable no longer exists

    Various business processes lead to the clearing of open items, such as:

    The customer pays a receivable with a payment or we pay a payable with a payment

    Payment

    The receivable or payable was unauthorized and is reversedReversal

    Receivables and credit on a contract account, or for a business partner, are cleared with one another

    Clearing

    Receivables cannot be collected and are written off in a revenueeffective manner

    Write-off

  • SAP AG FS310 2-11

    SAP AG 2003

    Documents: Clearing Documents 2

    A clearing posting means that the amounts that were updated by the clearing posting have to be updated on the other account side, in the general ledger and the subledger

    The clearing posting must therefore take place for the same company code, business area and G/L account, and on the same business partner, contract account and insurance object

    The posting amount contains the reversed +/- symbol

    To fulfill these requirements, a link must exist between the cleared posting and the clearing posting

  • SAP AG FS310 2-12

    SAP AG 2003

    General Ledger Integration

    General Ledger

    Special Ledger

    Profitability Analysis

    Cash Management

    SAP R/3 Insurance Subledger

    Operational system Totals

    recordCreate

    documents

    Business Support Systems

    Subledger documents

    CM

    FI-GL

    FI-SL

    CO-PA

    Data transfer

    The postings take place without updating the transaction figures in the G/L, for performance reasons.

    The documents are grouped and totaled before posting in the G/L. Separating criteria are the company code, business area, G/L account, posting date, document date, other account assignments (for cost center calculation, for example).

    Each group is given a unique key, the reconciliation key (FIKEY).

    For closed reconciliation keys, the posting totals can be updated in the G/L.

    Posting and reconciliation programs are available for integration.

    The prerequisite is that General Ledger Accounting is managed in the same system as the subledger.

    If G/L accounting takes place in a separate system, a general ledger must still be configured in the system, against which reconciliation can take place.

    Data in the central G/L is passed on using methods from the RW interface (ALE, for example).

    The posting period in the G/L must be opened for the transfer.

  • SAP AG FS310 2-13

    SAP AG 2003

    Summarization: Basics

    Policies

    Claims

    ...

    Subledger Tables

    Document HeaderReconciliation key 888

    Items

    GP 1 50Premium 40Tax 10

    Document HeaderReconciliation key 888

    Items

    GP 2 100Premium 80Tax 20

    Summarization LineReconciliation key 888

    Premium 120Tax 30

    Totals Tables

    Document HeaderReference key 888

    Lines

    Premium 120Tax 30

    General Ledger

    The reconciliation key is the link between the totals records for receivables/payables and the documents in the general ledger. The reconciliation key is saved in the "reference key" field in the G/L document. The reconciliation key is saved in the "reference key" field in the G/L document header, with a sequence number at the end. The first 12 characters in the reconciliation key are therefore identical with the reference key in the FI document.

    The posted documents are transferred to the G/L in total.

    The posting totals are updated in the DFKKSUM table.

    A totals record contains the total for the posted amounts for all document items.

    The totals records are split using the logical key.

    The totals records contain information for the document header and the document items.

    The cumulation can be suppressed:

    When selecting the single document indicator.

    A separate document is created for this document in the G/L.

    The line items for the document are summarized into totals records

    When selecting the single item indicator

    The cumulation of line items to an FI-CA document is also suppressed

    A separate line item is created in the G/L document

    During the G/L transfer, one or more FI documents are created from the totals records by the system. This technology permits tracking of the posted amounts in FI.

  • SAP AG FS310 2-14

    SAP AG 2003

    General Ledger

    Summarization: Example

    Subledger Document

    130000 40

    130001 10

    301000 40

    288700 10

    Header

    Header

    130000 80

    130001 20

    301000 80

    288700 20

    DFKKOP

    DFKKOPK

    Premium

    Tax

    Premium

    Tax -30288700-120301000

    30130001

    120130000

    1

    DFKKSUM Table Total

    -30288700

    -120301000

    30130001

    1201300001

    1

    1

    1

  • SAP AG FS310 2-15

    SAP AG 2003

    G/L Account Determination Using Posting Data

    Active PassiveJohn Smith

    Business Partner

    Contract Account

    Auto Insurance 3500000Insurance Objects11-28001000 Accident policy

    11-58001000 Liability policy

    15-78001000 Accident claim

    6001500

    20

    56345

    1200

    670759400

    Receivable/payable account determination

    Revenue/expense account determination

    General LedgerBalance P&L

    Collected premiums

    Taxes

    Claims payment

    PayablesReceivables

    G/L account determination takes place using control data in the document

    G/L account determination takes place with even 0295 on document level.

  • SAP AG FS310 2-16

    SAP AG 2003

    G/L Account Determination

    BP item 1

    BP item 2

    G/L item 1

    G/L item 2

    Document Header

    BP item n G/L item n

    Account Determination Customizing

    Account Determination Customizing

    Main and subtransaction

    Product groupContract account category

    Receivables/payables Revenue/expenses

    Main and subtransactionBusiness type

    Claim typeInsurance type

    Risk type

    The left-hand side of the graphic shows the account determination for the reconciliation account, the right-hand side shows the determination of the P&L account.

  • SAP AG FS310 2-17

    SAP AG 2003

    Account Determination: Receivables/Payables

    Product GroupMain TransactionSubtransactionContract Acct Category

    Select Key Fields

    Mandatory Used

    Reconciliation Account Maintenance (Receivables/Payables)Product Group Main transaction Subtransaction G/L

    account10

    *

    *

    6010

    6040

    *

    0120

    0100

    *

    130000

    131200

    140099

    XXX

  • SAP AG FS310 2-18

    SAP AG 2003

    Account Determination: Revenue/Expensee

    Insurance TypeBusiness TypeRisk TypeClaim TypeMain TransactionSubtransaction

    Select Key Fields

    Mandatory Used

    Profit and Loss Account Maintenance (Revenue/Expense)Insurance Type Main Transaction Subtransaction G/L

    account*

    *

    *

    5040

    6010

    0120

    0110*

    230099

    361000

    100010

    X

    XX

    6020

    +++

    +++

    ===

  • SAP AG FS310 2-19

    SAP AG 2006

    Main and Subtransactions

    Main Transactions Subtransactions

    MeaningKey01000110

    0120010001100120

    Payment plan chargePayment plan changechargeDunning chargeOne-time premiumFirst premiumRenewal premium

    Example from delivery Customizing:

    The transactions specify individual line items for:

    Further processing in FS-CD

    Account determination

    MeaningKey5010

    6010

    Charges

    Premium

    ......

    Main and subtransactions fulfill the following functions: They document the aspect of the business transaction or business process, which underlies

    the posting of the line item.

    An explanatory text is assigned to every main and subtransaction, and this can be used for correspondence.

    Main transaction and subtransactions can influence automatic account determination for many processes.

    An internal main transaction can be assigned to the main transaction, and an internal subtransaction can be assigned to the subtransaction; the internal transactions control the procedure for application-specific processing programs.

    The subtransaction differentiates the main transaction.

  • SAP AG FS310 2-20

    SAP AG 2003

    Payment Plan: Topic Objectives

    Post and configure payment plans

    At the conclusion of this topic, you will be able to:

  • SAP AG FS310 2-21

    SAP AG 2003

    Payment Plan: Process Overview

    Insurance Relationship

    Policy 1 Partner 1

    Dunning/payment method

    Correspondence Broker collections

    Payment Plan Amount Validity ...

    Insurance Operational

    Systems

    FS-CDDocuments

    Payment Plan Item

    Data transfer Execute payment plans

    Items

    To create documents, set document-related data from an operational system in the Collections/Disbursements system. Payment plan data is stored for the insurance relationship, and belongs to the master data (Payment Plan tab page). The payment plan data is enhanced by payment plan item data. This data, which can be about an amount, a validity period or account assignments, for example, is used as the basis for the documents to be created. Documents are created by the Execute payment plans mass activity.

  • SAP AG FS310 2-22

    SAP AG 2003

    Payment Plan: Integration

    General Ledger

    Special Ledger

    Profitability Analysis

    Cash Management

    SAP R/3 Insurance Subledger

    Payment plan items Totals

    recordExecute payment

    plans

    Business Support Systems

    Subledger documents

    CM

    FI-GL

    FI-SL

    CO-PA

    Data transfer

  • SAP AG FS310 2-23

    SAP AG 2003

    Payment Plan

    The payment plan and payment plan item are the basis for posting document in FS-CD

    A payment plan contains controlling parameters for payment plan items (such as payment plan key, payment plan lock)

    A payment plan item contains document-relevant data (such as amount, account assignments)

    A payment plan item is the basis for the postings to be created in the debit entry (Execute payment plans transaction). It contains an amount, a validity period and the account assignments required for the creation of subledger documents.

    The information relevant to the distribution of the amount is derived from this information, as well the information from the associated payment plan data. However, a payment plan item can also override the control information provided by the payment plan key, and can post the entire amount in one go (one-time document).

    Payment plan items are assigned to an insurance relationship as transaction data.

    You can assign n payment plan items, for which just one payment plan is valid, to an insurance relationship.

  • SAP AG FS310 2-24

    SAP AG 2006

    Document-relevant data from the operational system can be posted in FS-CD as a one-time payment, or can be distributed

    One-time payment

    Complete posting of amount

    One-time payment flag

    Distribution

    Distribution of an amount to a period

    Frequency according to payment plan key

    Other parameters (such as charges, activities)

    Payment Plan: One-Time Payment and Distribution

  • SAP AG FS310 2-25

    SAP AG 2003

    Payment Plans: Overview and Example

    John Doe

    Customer Contract number

    Auto insuranceFrom:To:

    1st January31st December

    Annual premium120

    Payment plan:Monthly

    JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember

    Total amount

    101010101010101010101010

    120

    Payment Plans

    Periodic Transfer

    FS-CD

    January postingFebruary posting

    John Doe

    1010...

    Operational System

  • SAP AG FS310 2-26

    SAP AG 2003

    Payment Option Configuration

    Payment Option

    OK

    Payment Plans

    MonthlyA1

    WeeklyA2

    More Payment Option Settings Permitted payment plan change

    Reversal specification

    Payment plan change charges

    Payment plan change activities

    Payment Option

    - Combining multiple payment plans

    - Procedure when switching payment plans

    Changing payment plan with reversal of documents already created, but not yet cleared

    Changing payment plan, with reversal of documents already created and cleared

    Definition of when and how the payment plan can be changed

    Changing payment plan at the next possible moment in the future (such as at the start of the next quarter, when changing from monthly to quarterly payment method)

    Changing payment plan when changing payment procedure

  • SAP AG FS310 2-27

    SAP AG 2003

    Payment Plan Configuration

    Lock Expiry

    Procedure for Expiry of a Payment Plan Lock

    Procedure for Premature TerminationEnd Payt Plan Early

    Procedure for Amount ChangesPayt Plan Amt Change

    ChargesCharge Schedules

    PeriodicityPayment Form

    1Number 52

    Positioning in Per. 1Offset 52

    ClassificationIndividual Distribution Online

    Payment Plan Key: 01 Payment Plan: Weekly

    21

    01

    01

    01

    Payment Plan

    Periodicity

    Weekly, 14 days, half-monthly, monthly, quarterly, half-yearly, yearly

    Distribution over n payment dates or the total runtime

    Free distribution to any dates, for any amounts (manual)

    Procedure for:

    Amount change

    Early ending

    Renewal

    Charges

  • SAP AG FS310 2-28

    SAP AG 2003

    Activities in the Payment Plan Process

    Immediate execution Execution with the next debit entry

    When changing payment plan items

    When posting

    a payment plan itemWhen changing payment plans

    or or

  • SAP AG FS310 2-29

    SAP AG 2006

    Payment Plan Change

    Contract numberAnnual premium120Payment plan:MonthlyCharge:6%

    JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember

    101010101010101010101010

    .60

    .60

    .60

    .60

    .60

    .60

    .60

    .60

    .60

    .60

    .60

    .60

    Premium Charge

    JanuaryAprilJulyOctober

    30303030

    1.801.801.801.80

    Premium Charge(Change at end of June)

    A1

    A2

    Payment Plan: Quarterly

    John Doe

    10101010101030

    .6

    .6

    .6

    .6

    .6

    .61.8

    Creation

    Customer-specific activities

    Dear Mr. Doe,based on our records the report for this month.................................

    Regards,

    Operational System

  • SAP AG FS310 2-30

    SAP AG 2003

    Reversal with Payment Plan Change

    The following rules exist for the reversal of payment plans thathave already been posted:

    - no reversal

    1 - reversal of open items only

    2 - reversal of open and cleared items

  • SAP AG FS310 2-31

    SAP AG 2003

    Payment Plan Change History

    JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember

    101010101010101010101010

    .60

    .60

    .60

    .60

    .60

    .60

    .60

    .60

    .60

    .60

    .60

    .60

    Premium Charge

    JanuaryAprilJulyOctober

    30303030

    1.801.801.801.80

    Premium Charge

    A1

    A2

    Payment Plan: Quarterly

    John Doe

    10101010101030

    .6

    .6

    .6

    .6

    .6

    .61.8

    History

    Change from A1 to A2 on...

    Change

    The history of payment plan changes is saved, and can be displayed at any time.

  • SAP AG FS310 2-32

    SAP AG 2003

    Ins. Object Payment Plan Settings (1 of 2)

    Broker Correspondence Payt Plan Payt Plan ItemsColl./Disb.

    Payment Plan Change History

    Payment Option Key

    Payment Plan Key

    Valid from

    Deferral Base Per.

    Deferral Base Days

    Grouping Category

    Summarization Cat.

    Payment Plan Lock

    Reserve and Record Payment on Account

    LI

    Monthly

    Jan 1, 2003

    Payment Option Key Payment Plan Key Valid from

    LI Monthly 01/01/2003

    LI Quarterly 01/01/2001

    Payment plan change on 01/01/2003

    Algorithm Key

    The following fields can be used to synchronize payment plan items with different due dates:

    Deferral base period

    Deferral base days. These fields can be used to set a deferral date for all items for a contract, with collection or disbursement for these items falling on one date

    You can use the grouping category to group multiple payment plan items in a document with multiple items

    You can use the summarization category to group multiple payment plan items to a line item

  • SAP AG FS310 2-33

    SAP AG 2003

    Ins. Object Payment Plan Settings (2 of 2)

    Doc. Data ...

    Broker Correspondence Payt Plan Payt Plan ItemsColl./Disb.

    Control Data

    Number Comp. Valid from

    1

    Valid to Currency Amount Doc. Type

    2

    01/01/2001 31/12/2001 USD 2400 10X

    10/10/2002 10/10/2003 USD 1200 10

    Add

    Renew

    Delete Item

    Act. Dist.

    Payt Plan Item CategoryItem IdentificationBusiness Transaction No.Valid from

    Renewal NumberRenew Automatically

    to

    toRisk Valid from

    One-Time Payment

    Currency

    Amount

    Amount Valid from

    Required AmountRequired ChargeEnd Early

  • SAP AG FS310 2-34

    SAP AG 2003

    Customer-Initiated Payment Form (Universal Life)

    Reserve and Record Payment on Accountx

    Usage of payment plan item category to differentiate payment plan items

    Payment plan item (without posting in FS-CD)

    Payment Plan Item

    +

    Creation of open item with debit entry

    Creation of 'actual' open item after payment receipt

    Term and meaning ("Actual") payment plan item Document category 20

    Contractually fixed total amount from which open items can be created

    Open item created from the total amount, if no split into partial amounts is made (one-time payment)

    ("Actual") payment plan subitem Document category 30

    Partial amount formed by a split of a payment plan item

    Open item created by a split of a payment plan item specified in a payment plan, following debit entry

    statistical/variable ("mock") payment plan item document category 21

    Entry created with the function Execute Payment Plans, for a payment plan item flagged as "not to be posted", if no split is specified

    statistical/variable ("mock") payment plan subitem Document category 31

    Entry created from a payment plan item flagged as "not to be posted", if a split is specified.

  • SAP AG FS310 2-35

    SAP AG 2003

    Universal Life: Processing in the Payment Plan Process

    Payment Plan ItemInsurance Object

    Document Category 20

    Payment plan item with postings

    Execute payment plan/debit entry

    OIs that can be cleared with incoming payments

    X Reserve and record payment on account

    Document Cat. 21

    Payment plan item without postings

    Universal Life

    Execute payment plan /debit entry

    Incoming paymentClearing customer-initiated payments

    Document Cat. 31

    Stat./variable payment plan subitem

    Document Category 30

    "Actual" payment plan subitem

    Information to operational system

    Clarif. worklist

    Execute payment plan / debit entry

    Creation of open items and clearing with credit

    The following functions/activities are important for creating open items with customer-initiated payment method (summary):

    The function Execute payment plans for creating "statistical/variable" payment plan subitems

    The function Payment lot for posting incoming payments

    The Clearing customer-initiated payments function for setting "actual" payment plan subitems

    The function Execute payment plans for creating open items and for clearing.

  • SAP AG FS310 2-36

    SAP AG 2003

    Account Balance: Topic Objectives

    Display and analyze the account balance

    At the conclusion of this topic, you will be able to:

  • SAP AG FS310 2-37

    SAP AG 2003

    Account Balance Display

    Business PartnerContract AccountContractCompany CodeAccount Balance Role

    Account Balance: Initial Screen

    Line LayoutSort VariantStart Screen

    List Display

    List CategoryList Category

    User-Specific SelectionWith Archive

    Further Selections

    Installment PlanReference

    Only items for

    Selection criteria

    Details

    Criteria are linked with "AND"

    List categories are defined in Customizing, and can be called up (and changed) here

    Users can save selections under their user ID

    List displays can be defined in CustomizingLine layout variants determine which fields are displayed. Sort variants determine a sequence.

    The account balance display enables swift analysis of the accounts with open, cleared and statistical items.

    The display function is flexible. All users can define their own selection criteria. If a user only wants to display amounts within a particular range, for example, then the "Amount" field can be used to delimit what is displayed.

    The list category determines what type of item can be displayed (open, cleared, statistical, ...), and what document category is used for selection.

    If no sort variant is specified, the system sorts according to the first 6 fields from the line layout variant.

  • SAP AG FS310 2-38

    SAP AG 2003

    ... ... ...

    Account Balance Display - Navigation

    422/V001Peter MeierWalldorf

    Receivables Down Payments Totals Payment List Chronology

    Posting Date Due date Total amount Open amount

    Date Transaction Debit Credit

    12/10/01 Manual posting 400

    12/11/01 Manual posting 200

    Navigation

    The processing clerk can use the navigation to display various views. This allows swift and easy navigation between receivables and payments, for example.

    More lists are available, such as the chronology.

  • SAP AG FS310 2-39

    SAP AG 2003

    Line Layout Variants: Other Variants

    A10

    A11

    A12

    A13

    1 A11 SAP standard account

    1 A12 Account/contract

    1 A13 Account/contract/document total

    2 Account/contract/individual item

    Line layout variants

    Sequence

    Sort descending?Name

    Category

  • SAP AG FS310 2-40

    SAP AG 2003

    Account Balance Display: Further Functions

    Sort, search, total

    Change line layout; additional fields; List Viewer

    Clearing history

    Invoicing history

    Dunning notices

    Returns

    Broker report

    Display master data (business partner, account, insurance object)

    Interest schedule

    Create account info

    Create payment form

    Write-offs

    Submit to collection agency

    and so on...

  • SAP AG FS310 2-41

    SAP AG 2004

    Postings and Documents: Summary

    Analyze documents

    Explain and configure integration and G/L account determination

    Post and configure payment plans

    Display and analyze the account balance

    You are now able to:

  • SAP AG FS310 2-42

    Exercises

    Chapter: Postings and Documents Topic: Post Document

    At the conclusion of these exercises, you will be able to:

    Post premium receivables manually

    Create a payment plan manually and post

    Display the account balance and execute an analysis

    The annual premiums are due on the policies for the customers of ABC Insurance. Three receivables must be posted, one each for auto liability, auto partially comprehensive, and the customers life insurance.

    Access Collections/Disbursements (FS-CD):

    Insurance Collections/Disbursements 1-1 Post Document

    Document Post Post a document for 1000 EUR manually as a receivable against the auto liability insurance for your business partner.

    Enter the following data:

    Field Name or Data Type Value

    Document Date Current date

    Posting Date Current date

    Doc. Type 80

    Currency EUR

    BPartnerItem SAP

    G/L item SAP

    The Reconciliation Key field contains a predefined value. Change this to FS310# (your group/place number) so that your documents can be differentiated from those belonging to other course participants.

    The first group works with number 11 (FS31011), the second group with number 12 (FS31012), and so on.

    The reconciliation key is normally assigned automatically

  • SAP AG FS310 2-43

    Choose Continue. Choose Yes in the subsequent pop-up, to allow you to create manually defined reconciliation keys. The fast entry screen is displayed. We will NOT use the fast entry screen for these exercises. Call up the detailed display by double-clicking on a line. Enter the following data:

    Field Name or Data Type Value

    Business Partner Your business partner number

    Company code V001

    Contract account Your contract account for auto

    Contract Your insurance object for auto liability INSO#1

    Main transaction 6010

    Subtransaction 0120

    Amount 1000

    Due date for net payment Current date

    Product Group 11 (auto insurance)

    Post the document. Make a note of the document number: ______________________________________________________

    1-2 Post Second Document Post a receivable for 500 EUR against the auto partially comprehensive insurance of your business partner.

    Enter the following data:

    Field Name or Data Type Value Document Date Current date

    Posting Date Current date

    Doc. Type 80

    Currency EUR

    Reconciliation Key Your reconciliation key FS310#

    BPartnerItem SAP

    G/L item SAP

  • SAP AG FS310 2-44

    Choose Continue and call up the detailed display by double-clicking on a line in the fast entry screen.

    Enter the following data:

    Field Name or Data Type Value Business Partner Your business partner number

    Company code V001

    Contract account Your contract account for auto

    Contract Your insurance object for auto liability INSO#2

    Main transaction 6010

    Subtransaction 0120

    Amount 500

    Due date for net payment Current date

    Product Group 11 (auto insurance)

    Post the document and make a note of the document number. ______________________________________________________

    1-3 Create and execute a payment plan item

    Enter a one-time payment for 1200 EUR against the life insurance of your business partner.

    Master Data Contract Account Change Select contract INSO#3 and go to the Payment Plan Item Control tab page. Choose the Add tab page. Enter the following data:

    Field Name or Data Type Value Payment plan item category 20 Payment plan item

    One-time payment Select

    Item identification 001

    Valid From Current date

    Valid To Year-end date

    Risk valid from Current date

    Risk valid to Year-end date

    Currency EUR

    Total amount EUR 1200

  • SAP AG FS310 2-45

    Choose the Payment Plan Item Document 1 tab page. Enter the following data:

    Field Name or Data Type Value

    Document Type 10

    Document Date Current date

    Posting Date Current date

    Due Date for Net Payment Current date

    Business Partner Item

    Company code V002

    Main transaction 6010

    Subtransaction 0120

    General ledger item

    Company code V002

    Main transaction 6010

    Subtransaction 0120

    Choose the Payment Plan Item Document 2 tab page. Enter the following data:

    Field Name or Data Type Value

    Product Group 20 (life insurance)

    Save your entries and return to the SAP Easy Access screen.

    1-3-1 Execute payment plan Payment Plans Execute Payment Plans Enter the following data:

    Field Name or Data Type Value

    Date ID Current date

    Identification "PP#" (your group/place number)

    Issue Date Current date + 1

    Business Partner Your business partner number

    On the Logs tab page, under Problem Class, choose Additional Information. Save your entries and start the Schedule Program Run function.

    On the next pop-up window, choose O.K. .

  • SAP AG FS310 2-46

    After the program run is complete, choose the Application Log from the Logs tab page.

    Check the created documents in the account balance. How many documents have been created, and with what due dates, and for which contracts?

    __________________________________________________________

    Return to the SAP Easy Access menu.

    1-4 Account Balance Account Account Balance Check whether the postings have been made correctly. Enter your business partner number. Choose the Open + Cleared Items list category. You can display the account balance for a business partner on four different levels of detail:

    Line layout You See... SAP Standard Account which contract accounts exist for

    your business partner

    Account/contract all insurance relationships that exist for this contract account

    Account/contract/document total

    the posted document

    Account/contract/individual item

    all individual items for this document. Double-clicking on the traffic light icon takes you to the original detailed item display for this line item.

    Choose Continue. You can navigate between the lines by double-clicking on the line you want, or by using the traffic light icon. Take a few moments to examine all the specifications for the account balance, in all lines. Use all the selection criteria for displaying the account balance basic list. Return to the SAP Easy Access menu.

  • SAP AG FS310 2-47

    Exercises

    Chapter: Postings and Documents Topic: G/L Integration

    At the conclusion of these exercises, you will be able to:

    Transfer postings from FS-CD to the G/L

    Find and analyze those postings that have been transferred to the G/L and navigate to the corresponding FS-CD documents.

    ABC Insurance regularly updates its G/L with the postings that have been executed in the insurance subledger.

    1-1 Close your reconciliation key FS310#. From the menu, choose Document -> Reconciliation Key -> Close. Enter your reconciliation key FS310#. Choose Continue. Then choose Close. Reply in the affirmative to the query that follows. The reconciliation key is locked for further postings.

    1-2 Now update your G/L. From the menu, choose Periodic Processing Forward

    Postings Execution G/L Transfer. Enter your reconciliation key FS310#, the company codes V001 and V002 and set the List of Structured FI Documents flag. Deactivate the Test Run flag. Now choose Execute Program from the menu bar.

    1-3 Check the documents that were created in the G/L. In the SAP menu, choose

    Accounting Financial Accounting General Ledger Document Display. Choose Document List. Enter company codes V001 and V003, as well as the reconciliation key FS310#*, (ensure that you enter the asterisk) in the Reference Key field. Then choose Execute Program. Call up the detailed display by double-clicking on a document. Check the items and the header information. From the menu, choose Extras Document Header. Make a note of the contents of the Reference Key field. Now branch from the G/L document to the underlying FS-CD documents. Choose Environment Document Environment Original Document. Open the individual lines by choosing the folder symbol on the left-hand side of the screen.

  • SAP AG FS310 2-48

    Exercises

    Chapter: Postings and Documents Topic: Payment Plan

    At the conclusion of these exercises, you will be able to:

    Analyze payment plans and payment plan items

    The ABC Insurance customer has purchased another auto insurance contract, for which a mid-year payment method has been agreed.

    Access Collections/Disbursements (FS-CD): Insurance Collections/Disbursements

    1-1 Display Payment Plan Item

    Insurance Object Display Check the payment plan and the payment plan item for your business partner. Enter the following data: GP#PP (# = your group/place number).

    Choose the Payment Plan tab page. Which payment option key is set, and which payment plan key? What is the meaning of the payment option key?

    __________________________________________________________

    __________________________________________________________ Choose the Payment Plan Item Control tab page. Make a note of the validity period and the amount for the payment plan item. __________________________________________________________

    Choose Current Distribution. When are the payment plan items due and what are the amounts?

    __________________________________________________________

  • SAP AG FS310 3-1

    SAP AG 2003

    Correspondence in Collections/Disbursements

    Correspondence definition and types

    Handling correspondence and Customizing

    Contents:

  • SAP AG FS310 3-2

    SAP AG 2003

    Correspondence: Unit Objectives

    Create correspondence

    Explain the concept of the correspondence container

    Assign correspondence parameters in the master data

    At the conclusion of this unit, you will be able to:

  • SAP AG FS310 3-3

    SAP AG 2006

    Correspondence: Course Overview

    Course Overview

    Master data

    Postings & Documents

    Correspondence

    Clearing & Payment Lots

    Payment Program

    Returns

    Dunning

    Installment Plans

    Broker Collections

  • SAP AG FS310 3-4

    SAP AG 2003

    Correspondence: Business Scenario

    ABC Insurance wishes to send invoices to its customers.

  • SAP AG FS310 3-5

    SAP AG 2003

    Correspondence

    All printed evaluations, reports and documents that are sent to business partners, are considered as correspondence.

  • SAP AG FS310 3-6

    SAP AG 2003

    Correspondence Creation

    From an application (such as account balance, credit list)

    Within a business process (such as a dunning letter or returns notification)

    With correspondence runs (such as invoice, account statement, contract statement)

  • SAP AG FS310 3-7

    SAP AG 2003

    Correspondence Types 1

    The following correspondence types are examples of those currently delivered by SAP: Returns (0001)

    Account statement (0002)

    Account information (0013)

    Document print (0014)

    Dunning notice (0003)

    Invoice (V004)

    Installment plan (0005)

    Payment advice note (0006)

    Interest letter (0007)

    Quotation (V008)

    Tax office certificate (V018)

    Check print (0015)

    Account balance interest letter (V030)

    Payment notification (0019)

    Pledgee notification (0011)

    Payment plan change letter (V022)

    The account statement is an example of a correspondence type whose formatting can not be influenced by the user. If, for example, the end user requests an account statement for the contract account, he/she receives a printout of all items that were posted against this account.

    However, the account information correspondence type is directly influenced by the end user. This means that the user can use certain selection criteria to specify that only those items, which were posted against contract account ABC and which have an amount between 1000 and 10,000 EUR, are displayed.

    A quotation is a form, which can be sent to a business partner or a potential business partner.

    The tax office certificate can only be cr