ebpp, eip, electronic account presentment - · pdf fileebpp, eip, electronic account...

EBPP, EIP,Electronic Account

Presentment

The Financial Supply Chain

Bill Forshey

SAP AG 2001, September 2001, Bill Forshey / 2

•What if you could improve your order to cash cycle, lower your costs and improve the relationship with your customers …

•and

•enhance your customers’ payables processes and lower their costs?

•Why wouldn’t you?


Order to Cash Business Problems - Seller

• B2B Business needs – to support the business partner (payer):

• Timely, efficient Invoice Delivery• Dispute/Deduction Management and Tracking• Invoice Download• Timely Payment

• Debit/Credit Card handling• Debit – info back to A/P• A/P payment


Biller EBPP Concerns

•Seller Concerns: (Sales / A/R / CRM / Cash Management)• Will the Payer Use It? – Payer Drivers• Agreement on Amount Due – Dispute Resolution• Invoice distribution Channels• Payment Options

• Debit / Cards• Paid using current methods

• Transfer of information from Debit or Cards to Buyer• One time customers


Order to Cash Business Problems - Buyer

•Purchaser Concerns: (Purchasing / A/P / Cash Management / Vendor Relations)

• Electronic receipt of invoices may be mandated• Payment using existing payment methods and procedures• Capture of information from Debit or Cards• Data integration of Invoicing data received• Invoice Verification• Exception and Dispute Handling


Buyer EBPP Concerns

•Purchaser Concerns: (Purchasing / A/P / Cash Management / Vendor Relations)

• Why should I use it• Maximize cash flow• Proliferation of Biller websites• High invoice volume• Main interest is in exceptions


EBPP - Advantages for CSPs/Private Exchanges

Basis for additional services

New revenue streams

Full integration offer

Cross-selling opportunities

„Stickiness“ of participants

Key competitive differentiator (Financial Supply Chain offer)


What is EBPP at SAP?

• What if you could improve your order to cash cycle, lowering your costs and improving the relationship with your customers … and enhance your customers’ payables processes and lower their costs?

• That’s SAP’s EBPP Solutions• Electronic delivery of invoice data• Interaction with the invoice details real time• Interactive Dispute Management and History • Payment Facilitation• Availability of invoice data to the customers’ A/P• Presentment Interfaces to Consolidators

• Soon to be available:• Direct Biller Solution from the customer’s R/3 A/R or IS-CA, or• Internet Sales Solution using built in data and service agent support, or• Web Billing and Payment for the City of e- , or• Bill Consolidator Solution receiving information from the biller’s system, or• As a component of the Market Set Financial Supply Chain


Biller’s Bank(Biller Payment Provider)

Customer’s Bank(Customer Payment Provider)

Biller Direct Model – Order to Cash Flow

1. Purchase is Made, Order is Fulfilled and Shipped

7a. Buyer Authorized Debit

8b. BankStatement

7b. Buyer Initiated Credit

6a. Payment RequestRemittance Detail File

CustomerBiller

8a. Bank Statement

6b. PaymentOrder & RemittanceDetail File

EBPP FUNCTIONS

* 4. Dispute Management

* 5a. Payment Authorization

3. Access Account

* 2. Invoice or Invoice Notification (or ERS)

* - optional feature for payer




EBPP Access Models

Payment Clearing

Consolidatorand/or Switch

OpenConsolidator Model

Biller Customer

BSPConsolidator Model

(sender-oriented) Biller

BillerServiceProvider Customer

Biller

CSPConsolidator Model(receiver-oriented)

CustomerServiceProvider Customer

BillerDirect Biller

Model Customer




EBPP Access Models – SAP Solution

Payment Clearing

Consolidatorand/or Switch

OpenConsolidator Model

Biller Customer

BSPConsolidator Model

(sender-oriented) Biller

BillerServiceProvider Customer

Biller

CSPConsolidator Model(receiver-oriented)

CustomerServiceProvider Customer

Biller

SAPDirect Biller

Model Customer


EBPP FUNCTIONS



Biller Direct Model – EBPP and R/3 components

1. Purchase is Made, Order is Fulfilled and Shipped

7a. Buyer Authorized Debit

8b. BankStatement

7b. Buyer Initiated Credit

6a. Payment RequestRemittance Detail File

CustomerBiller

8a. Bank Statement

6b. PaymentOrder & RemittanceDetail File

* 4. Dispute Management

* 5a. Payment Authorization

3. Access Account

* 2. Invoice or Invoice Notification (or ERS)

* - optional feature for payer

R/3SD

R/3FI-TR-CM

R/3BillingEngine

R/3FI-A/RFI-CA


Main Benefits Of SAP‘s Solution

Electronic Account Presentment and Payment" more than mere bill presentment" complete view on contract account" view contains open items and credits" customers are able to set off credits agains open items

Fully integrated in SAP Financials and other SAP components (e.g. CRM Billing Engine)

Extended functionality offered (dispute management, CRM profiling, etc.)

Scalable and proven architecture


A/P

Browser

SSL

HTTPS

SSL

HTTPS

Web Application Server

SAP EBPPFrontend

(Java)

JCO

Firewall

RFC

Firewall

WebServer

Billing Application (e.g. SD, Billing

Engine)

Company IntranetCompany IntranetCompany IntranetCompany Intranet

Architecture Of SAP‘s EBPP Solution (Overview)

SAP Application Server

SAP Backend (FI-CA)

SAP Backend (FI-AR)

Payment ProgramReconcile Cash

SAP Treasury(FI-CM)

SAP Order Management

SDOrderEntry

Customer

Bank

Sends PaymentAccepts

Debit

ReceiveGoods

Or Services

Card orAccount

Debit

CheckACHWire


JCO Java API

Middleware Interface

RFC MiddlewareSOAP Middleware

JNI Layer

RFC Library

RFC

RFC

SAP System

HTTP Port

HTTP

JAVA Application

SAP Java Connector: Architecture

Java applications only use Jco‘s Java API

Pluggable JCo Middleware Implementations

RFC Middleware uses classical RFC library 4.6D through Java Native Interface (JNI) layer

Future middleware implementation based on HTTP/SOAP protocol


Order-to-Cash

Procure-to-Pay

The Financial Supply Chain:Today’s Paper Trail

Biller’s Bank

Account Reconciliation

2-5 daysPayment logging and bank deposit

Dispute Resolution

A/RBillingOrder

fulfillmentOrder Entry

1-4 days

Payer’s Bank

Payment terms plus 4-10 days1-60 days4-7 days14 – 21 days4-7 days

Account ReconciliationPayment

Clarification & Dispute Initiation

A/P

Invoice approval

Receiving goodsProcurement

Purc

hase

ord

er

Pack

Lis

t

Invo

ice

Tele

phon

e D

iscu

ssio

ns

Payment Received

Payment Charged

Che

ck C

lear

ed

Che

ck M

aile

d

Fund

s


Order-to-Cash

Procure-to-Pay

The Financial Supply Chain:Process Improvements

Biller’s Bank


1 dayDebit Initiation

Dispute Resolution

A/RBillingOrder


1 day

Payer’s Bank

Payment terms1-60 daystomorrowtomorrowtoday



A/P

Invoice approval


EDI P

urch

ase

orde

r

Pack

Lis

t

EDI I

nvoi

ce

Payment Request

Debit Request

Payment Received

Payment Charged

Fund

s

Inte

rnet

Sal

es

Not needed for ERS

Tele

phon

e D

iscu

ssio

ns


Order-to-Cash

Procure-to-Pay

The Financial Supply Chain:Process Improvements Plus EBPP

Biller’s Bank


1 dayDebit Initiation

Dispute Resolution

A/RBillingOrder


1 day

Payer’s Bank

Payment termstomorrowtomorrowtomorrowtoday



A/P

Invoice approval


EDI P

urch

ase

orde

r

Pack

Lis

t

EDI /

e-in

voic

e

EBPP

Dis

pute

Man

agem

ent

Payment Request

Debit Request

Payment Received

Payment Charged

Fund

s

Inte

rnet

Sal

es

Not needed for ERS

Only needed for questions

EBPP

Pre

sent

men

t

EBPP

Pay

men

t Aut

horiz

atio

n

When acceptable to payer

Alternative to e-invoice to speed delivery


The Financial Supply ChainIn Context

Supply Chain Management

CorporateFinance

Management

Customer Relationship Management

Business Analytics


Scope of the Demonstration

This demo will showcase collaboration between enterprises.

A new PC is ordered using a B2B scenario. Since the focus is on Financials, we will review invoices, account balances and payment information on our vendor’s website. (EBPP)

The buyer will then also authorize a payment of an invoice on the vendor’s website. (EBPP)

The buyer’s Cash Manager will then review payments to be processed and payments processed by one of their banks, and initiate a payment run. (XML)

Lastly a Cash Application clerk receives an e-mail from one of our vendors that they were unable to apply a payment. The clerk willpropose an adjustment indicating which invoices to pay directly in the vendor’s website. (Collaborative Account Statement)

(Indicates mySAP Products we are highlighting)


The Scenario


EBPP Login Screen

Login to the Internet Store … To purchase something or look at invoices and payments

Login ID = 201041, PW = sapcrt


EBPP Main Internet Store Menu

Purchase a PC … or, select the “my invoices” button at the top


EBPP My Bills Screen

List of unpaid invoices. Invoices will scheduled payments will not appear

Drill down by selecting the invoice description


EBPP Supporting Billing Document

Invoice Detail … drilldown further is possible


EBPP Billing Document

Order Information … delivery information … product information


EBPP More Invoice Detail

Drill down is available to the extent that it is entered from the billing system, or is included in R/3


EBPP My Bills Screen

To initiate an inquiry or dispute separate from payment


EBPP Inquiry Entry Screen

Ability to begin a dispute or inquiry prior to payment authorization … message is logged to FI for use by CRM or A/R or ?


EBPP Payment Authorization

Select 1) the invoices to pay, 2) with the full or partial amount, 3) if credits should be used, and 4) the payment method

1

2

34


EBPP Remittance Information on Partial Payment

Enter remittance reason for partial payment and submit for payment … reason codes to be added in the next release


EBPP Payment Authorization Acknowledgement

Acknowledgement by system of Payment Authorization


EBPP Available Credits

Screen to review and select available credits for use in payments

None show in this example


EBPP My Payments Screen

Review in process payments and make a targeted search


EBPP Payment History

Search Results


EBPP My Payments Screen

delete a scheduled payment


EBPP Payment Stop Confirmation

Payment stop confirmatoin


CAS Login Screen

Collaborative Account Statement – login screen

User = burgerj, PW = demo


CAS Menu

Select Open Items to apply payments to open invoices


CAS Open Items Screen

Click on amounts to assign payments to invoices


CAS Notes on assignment

1) Select note icon, 2) enter reasons or message and 3) click “assign” to log the note

1

23


CAS Assignment Confirmation Screen

Confirms the assignment is logged and notification sent to the biller


CAS Dispute / Query Entry

Disputing an item not yet paid, prior to paying


CAS Payment Advice Menu

Review notes to Biller on Assignment, may be deleted or edited


CAS Address Data Menu

New information may be sent to the biller


CAS Balances Menu

Displays balances, debits and credits by month, with ability to drill down to invoices and payments


CAS Account Line Items

Account line items, with print capability


CAS Account Line Items

Excel export from line items


Questions?

? ? ? [email protected]

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