leverx payment terms governance
TRANSCRIPT
LeverX Payment Terms Governance
Version 1.1 - September 2, 2019
Helping Companies Leverage
Investments in SAP Solutions
LeverX Payment Terms Governance
Typographic Conventions 3
Typographic Conventions
Type Style Description
Example Words and characters quoted from the screen. These include field
names, screen titles, labels, menu options, and names
Example Emphasized words or expressions
Example Internal and external links
! Example Important notes
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Content
Content
Content ................................................................................................................................................... 4
Overview ................................................................................................................................................ 6
1 Basic Concepts ................................................................................................................................... 7
1.1 System Landscape ................................................................................................................... 7
1.2 SAP HANA Database Tools ..................................................................................................... 8
1.3 Support ..................................................................................................................................... 8
2 Initial Setup ......................................................................................................................................... 9
3 Roles in Payment Terms Governance .......................................................................................... 10
3.1 Strategic Purchaser ............................................................................................................... 10
3.2 Administrator ......................................................................................................................... 10
3.3 Operational Purchaser ......................................................................................................... 11
4 Request Payment Terms ................................................................................................................ 12
4.1 Create, Edit, and Delete Payment Terms ........................................................................... 12
4.2 Filter Payment Terms ............................................................................................................ 16
4.3 Customize Payment Terms View......................................................................................... 17
5 Rules for Payment Terms ............................................................................................................... 18
5.1 Create, Edit, and Delete Rules for Payment Terms .......................................................... 18
5.2 Filter Rules for Payment Terms ........................................................................................... 20
5.3 Customize Rules for Payment Terms View ........................................................................ 21
6 Manage Payment Terms ................................................................................................................ 22
6.1 Filter Systems Available for the Payment Terms Governance App ............................... 23
6.2 Customize the Systems View ............................................................................................... 23
6.3 Map Payment Terms ............................................................................................................. 23
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Content 5
7 Monitor Payment Terms ................................................................................................................ 26
7.1 Filter Purchasing Documents .............................................................................................. 27
7.2 Customize Purchasing Documents View ........................................................................... 29
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Overview
Overview
Payment Terms Governance (PTG) is a suite of applications designed to create, monitor, and
control payment terms for every purchasing document from any SAP system.
PTG includes four applications built into the SAP Fiori launchpad. Each application covers
specific functions to contribute to the overall smooth governance of payment terms by
maintaining payment terms centralized, tracking purchase documents, and checking
whether the payment terms fully correspond to the documents according to selected
regions/countries, purchasing organizations, or companies.
Figure 1: Payment Terms Governance in the Fiori launchpad
Typically, the application is involved in the next payment terms use sequence: the creation of
payment terms in the app, the creation and use of payment terms in your systems, payment
terms mapping and monitoring in the app. The correction of payment terms in the system is
available if needed.
Payment Terms Governance provides the following applications:
Request Payment Terms
Rules for Payment Terms
Monitor Payment Terms
Manage Payment Terms
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1 Basic Concepts 7
1 Basic Concepts
1.1 System Landscape
The application is hosted on the SAP Cloud Platform (SAP Cloud Foundry environment).
The entry point to the Payment Terms Governance application is the SAP Fiori launchpad,
which contains a suite of four web applications mentioned above.
The backend part is presented by the Node.js server that uses SAP HANA database to store
all user data. There is also the Java server pre-processor designed for preprocessing
documents.
The diagram shows the structure of the application:
PTG application comes ready to use. All necessary services are included, while the
unnecessary ones are disabled and do not use cloud resources. Disabling and enabling
services will always lead to a violation of the applications state. Therefore, it should be
performed only in cases of critical errors.
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1 Basic Concepts
1.2 SAP HANA Database Tools
The SAP HANA database is used for PTG application backup and recovery. For more
information, see SAP HANA Database Backup and Recovery on SAP Help Portal.
1.3 Support
For any information related to your Payment Terms Governance app, contact us on
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2 Initial Setup 9
2 Initial Setup
Before you start your Payment Terms Governance app, initial setup is required.
• SAP Cloud Connector is used to link cloud applications with on-premise systems. Since
Payment Terms Governance is built on the SAP Cloud Platform, first install and
configure SAP Cloud Connector to link PTG with your on-premise systems. For more
information, learn about SAP Cloud Connector on SAP Help Portal.
• Describe subaccount level destinations to external resources. For the procedure
description, visit Create a new Destination on Subaccount Level on SAP Help Portal.
Here is the example of Ariba, Ariba Token, and S4C test systems as subaccount level
destinations:
• Set up sap-client, specify the system type in the sys_type field as S4HANA, and mark
those systems that are to interact with the PTG application as pt_system in the usage
field.
One of the systems is used as the central one. It is also a source of reference data for the PTG
app. Mark it as pt_main in the usage field:
! Only one system can be marked as pt_main.
If everything is correct, all the systems marked as pt_system and/or pt_main will be displayed
in the Manage Payment Terms application of PTG.
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3 Roles in Payment Terms Governance
3 Roles in Payment Terms Governance
A system administrator assigns the Token_Exchange system role to all users.
Depending on the tasks set for the Payment Terms Governance app, one of the next three
roles is also assigned to the users:
Strategic Purchaser as an Originator
Administrator as a Coordinator
Operational Purchaser as an Executive
If you use SAP Identity Provider, you can build and control roles by yourself. For more
information about building roles, visit Building Roles and Role Collections for Applications on
SAP Help Portal.
3.1 Strategic Purchaser
This role is assigned to users who act as experts capable to create both payment terms in the
Cloud and rules of their usage. Strategic Purchaser has a permission to inform Operational
Purchasers about incorrect purchase requests.
This role is for users who need to view, edit, and create documents, payment terms, and
rules.
Strategic Purchaser uses the following apps:
Request Payment Terms
Rules for Payment Terms
Monitor Payment Terms
Manage Payment Terms
3.2 Administrator
This role is assigned to users who are authorized to create and map payment terms across
all systems.
Administrator is authorized to view payment terms details as well.
Administrator uses the following apps:
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3 Roles in Payment Terms Governance 11
Request Payment Terms
Manage Payment Terms
3.3 Operational Purchaser
This role is assigned to users who are responsible for creating different types of purchase
documents. Also, the role is assigned to users who follow the rules already set up in the app
and monitor the accuracy of purchasing documents. In case of mistakes, Operational
Purchaser either fixes the data after finding out the inconsistencies or gets proper
notifications from Strategic Purchasers.
The Operational Purchaser role is for employees who need to view rules, documents, and
payment terms.
Operational Purchaser uses the following apps:
Request Payment Terms
Rules for Payment Terms
Monitor Payment Terms
Manage Payment Terms
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4 Request Payment Terms
4 Request Payment Terms
To start working with the Payment Terms Governance app, you create a payment term in the
Request Payment Terms app. Here you create and maintain payment terms that are used
within the PTG app and request payment terms related to the required product for target
systems. Request Payment Terms app is developed to become a central storage of all the
payment terms applied to any of your systems.
Figure 2: Request Payment Terms app view
Key features
➢ Create, edit, and delete Payment Terms.
➢ Search and/or filter Payment Terms by defining the filter bar parameters.
➢ Customize the Payment Terms view by selecting “Display Settings”.
Constraints
➢ Only users with the role of Strategic Purchaser are authorized to create, edit, and
delete Payment Terms. Users with other roles can only view Payment Terms in this app.
➢ Once set, Day Limit value cannot be edited.
4.1 Create, Edit, and Delete Payment Terms
Procedure
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• To create a payment term, click on the “Create New Payment Term” icon:
Name the payment term.
Fill in and/or select the required fields.
Click Save.
You can also create a new payment term based on an existing one. Select a payment term
from the list, click Copy, change the required fields, and click Save.
• To edit the selected payment term, click Edit:
Click Save to save the edited payment term or Cancel to quit the edit mode with no
changes saved.
When you create/edit payment terms, the next fields are selected / filled in:
Field/Label Description
General Info
Payment Term ID A unique digital code automatically formed by the
Request Payment Terms app
Payment Term Description The description of a payment term is further used
(sometimes along with the payment term ID) to refer
to payment terms in the Payment Terms Governance
app
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4 Request Payment Terms
Field/Label Description
Day Limit Day of the month up until which the corresponding
payment terms are valid. For payment terms that
depend on whether the baseline is after or before the
15th of the month, you can store a two-part payment
term within one Payment Term Description
Target Systems SAP S/4HANA and/or other systems
Account Type You can define which account type can use this
payment term, e.g. customer and/or vendor
Changed On Date and time
Changed By Employee name
Created On Date and time
Created By Employee name
Baseline Data
Fixed Day Fixed day is used to overwrite the calendar day of the
baseline date
Additional Months The number of month(s) to be added to the calendar
month of the baseline month
Explanation The explanation is automatically formed by the app
according to Fixed Day and Additional Months values
Default for baseline date The default values from which the baseline date can
be determined. No default means that you have to
enter the base date manually during the document
entry
Payment Block
Block Key The payment blocking reason
Payment Method The payment method determines how payments are
to be made, e.g. by check, bank transfer, cash, etc.
Terms of Payment
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4 Request Payment Terms 15
Field/Label Description
Installment Payments An indicator that the invoiced amount is to be broken
down into partial amounts with different due dates
Recurring Entries: Add Payment
Terms from Master Record
This indicator controls whether the payment terms in
a recurring entry are to be taken from the customer or
vendor master record, if no terms of payment key
have been entered in the recurring entry original
document.
Set this indicator if you want the terms of payment
(due date, cash discount) for a recurring entry to be
taken from the customer or vendor master record and
not from the recurring entry original document. In the
master record of your business partner, define the
terms of payment key with this indicator set and
delete the terms of payment key in the recurring entry
original document
Discount (%) The discount (cash discount percentage rate that is
granted for the payment within the specified period)
and the number of days the discount is valid for in the
same line. The entered values are used to calculate the
cash discount.
You can enter up to three cash discount periods
Number of Days
Fixed Day Fixed calendar day serves as a part of the date on
which the first or second cash discount period ends
and/or the date on which the due date for net
payment is reached.
Additional months - the number of months which are
to be added to the baseline date for payment in order
to determine the end of the first or second cash
discount period and/or the date on which the due date
for net payment is reached.
The day and months specified in the terms of payment
are used in conjunction with the baseline date to
Additional Months
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4 Request Payment Terms
Field/Label Description
calculate the correct cash discount amount for the
payment date
Explanation Explanation is automatically formed by the app
according to the customizing you made
! The length of Payment Term Description is limited to 70 characters. Create a
description that will meet this requirement.
• To delete the selected payment term, click Delete.
4.2 Filter Payment Terms
Procedure
• Fill in the Payment Term field and/or select other filter bar parameters to filter payment
terms. Click Go to apply filters.
Search by Payment Term is performed through Payment Term ID and Payment Term
Description.
Other filters include Target Systems, Changed On, Changed By, Created On, and Created
By parameters.
Figure 3: Selecting Date Range to filter Payment Terms by the Сreated On parameter
• To restore the Payment Terms list after applying filters, make sure that Payment Term
and all the other filter fields in the filter bar are clear. Then click the Go button again.
• To customize the filter bar, click Filters.
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4 Request Payment Terms 17
! Created On and Created By filter parameters are not displayed by default.
4.3 Customize Payment Terms View
Procedure
• Click on the “Display settings” icon .
Choose Columns and/or a sorting parameter in the View Settings window. Click Ok to
apply your settings.
• To restore Payment Terms to the default view, click the Restore button in the View
Settings window.
! Created On and Created By columns are not displayed by default.
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5 Rules for Payment Terms
5 Rules for Payment Terms
With this app, you can create and maintain rules for payment terms that are used within
the Payment Terms Governance app. The direct correlation between certain types of
payment terms and selected regions/countries, purchasing organizations, or companies
prevents you from inaccurate purchasing documents.
Figure 4: Rules for Payment Terms app view
Key features
➢ Create, edit, delete, and copy Rules.
➢ Search and/or filter Rules by defining the filter bar parameters.
➢ Customize Rules view by selecting “Display Settings” icon .
Constraints
➢ Only users with the role of Strategic Purchaser are authorized to create, edit, and
delete Rules for Payment Terms. Operational Purchasers can only view Payment Terms
in this app.
5.1 Create, Edit, and Delete Rules for Payment Terms
Procedure
• To create a rule, click on the “Create New Payment Term Rule” icon:
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5 Rules for Payment Terms 19
Fill in and/or select the required fields.
Сlick Save to save the created payment term rule.
You can also create a new rule based on an existing one. Select a rule from the list, click Copy,
change the required fields, and click Save.
• To edit selected rule, click Edit.
Click Save to save the edited rule or Cancel to quit the edit mode with no changes saved.
When you create/edit a rule for payment terms, the next fields are filled in/displayed:
Field/Label Description
General Info
Rule ID Unique digital code automatically formed by app
Rule Description Rule description is used to refer to the rules for
payment terms in the Payment Terms Governance
app
Company Company name and company code
Country Country and/or region
Organization Purchasing organization
Payment Term Payment Term Description (and Payment Term ID)
from the Payment Terms Governance app
Created On Date and time
Created By Name
Payment Terms
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5 Rules for Payment Terms
Field/Label Description
Payment Term Payment term description and payment term ID
Percentage Permissible percentage of the rule’s usage in all
documents
Explanation The explanation for baseline data is automatically
formed by the Request Payment Terms app
according to Fixed Day and Additional Months values
Changed On Date and time
Changed By Employee name
Created On Date and time
Created By Employee name
! The length of Rule Description is limited to 70 characters. Create a description
that will meet this requirement.
• To delete the selected rule, click Delete:
5.2 Filter Rules for Payment Terms
Procedure
• Fill in the Rule field and/or select filter bar parameters to filter rules for payment terms.
Click Go to apply filters.
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5 Rules for Payment Terms 21
Search by Rule is performed through Rule ID and Rule Description.
Filters include Payment Term, Company, Country, Organization, Created On, and Created
By parameters.
• To restore the Rules list after applying filters, make sure Rule and filter bar fields are
clear and click the Go button again.
5.3 Customize Rules for Payment Terms View
Procedure
• Click on a “Display settings” icon .
Select Columns and/or a sorting parameter in the View Settings window. Click Ok to
apply.
• To restore Rules for Payment Terms to the default view, click the Restore button in the
View Settings window.
! The Payment Term column is switched off by default.
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6 Manage Payment Terms
6 Manage Payment Terms
The Manage Payment Terms app is responsible for payment terms mapping according to the
SAP S/4HANA or another system they refer to. Payment terms mapping is needed for a
further check of purchase documents accuracy.
Figure 5: Payment Terms Mappings app with SAP systems
Figure 6: Payment Terms Mappings for the CentralPTSystem test system
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6 Manage Payment Terms 23
Key features
➢ Filter systems available for the Payment Terms Governance app by using the search
field in the filter bar.
➢ Map Payment Terms from the Payment Terms Governance app to the corresponding
Payment Terms in System.
Constraints
➢ Only users with the role of Administrator are authorized to map Payment Terms.
6.1 Filter Systems Available for the Payment Terms Governance App
Procedure
• Fill in the System field in the filter bar to filter the available systems. Click Go to apply
filters.
The search is performed through System ID.
• To restore the Systems list after applying filters, make sure the System field is clear and
click the Go button again.
6.2 Customize the Systems View
Procedure
• Click on the “Display settings” icon .
Select required Columns and/or sorting parameters in the View Settings window. Click
Ok to apply your settings.
• To restore Systems to the default view, click Restore in the View Settings window.
6.3 Map Payment Terms
Procedure
• To map Payment Terms from the Payment Terms Governance app to the Payment Terms
in System, click Edit.
Press the button for selecting Payment Terms previously entered into PTG (in
the Request Payment Terms app). Then select corresponding Payment Terms from a
list:
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6 Manage Payment Terms
Click Save to save payment terms mappings or Reject to quit the edit mode with no
changes saved.
The next fields describe payment terms mappings for a selected system:
Field/Label Description
Payment Terms Mappings
Payment Term in System Description of the terms of payment and terms of
payment key from SAP S/4HANA and/or other
systems
Days The number of calendar days following the baseline
date for payment after which the payment must be
made in order to pay within the due date for the net
payment period (from SAP S/4HANA and/or other
systems)
Payment Term Payment term description and payment term ID
from the Payment Terms Governance app
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Field/Label Description
Not mapped means that a payment term from the
system is not mapped to a payment term from the
Payment Terms Governance app
Mapped On Date and time
Mapped By Employee name
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7 Monitor Payment Terms
7 Monitor Payment Terms
With the Monitor Payment Term app, you control whether the relevant payment terms are
chosen for your documents.
Figure 7: Monitor Payment Terms app view
The checking mechanism is based on rules for payment terms that you create in Rules for
Payment Terms app. And payment terms are to be crated and mapped to payment terms
from your systems in Request Payment Terms and Manage Payment Terms apps as well.
For each document, its characteristics (company code, country, and purchasing organization)
from a payment term from are compared with the corresponding fields in the PTG rules for
payment terms.
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7 Monitor Payment Terms 27
The check results are described by the document health:
Do a company code, country, and
organization from the document and a
company code, country, and organization
from the rule match?
Is a payment term from the
document stated in the rule?
Health
Not relevant The payment term from the
document is not mapped to
the payment term from the
PTG app
Not Mapped
No Not relevant No Rule
Yes No At Risk
Yes Yes On Track
For example, if a document gains an “At Risk” health, another payment term should be used.
The alternative options of payment terms are suggested by the app in the “Proposed” column.
The application suggests payment terms with the relevant company code, country, and
organization fields in accordance with the rules for payment terms.
The app provides a possibility to view the original documents. Click the document to see its
details in the display mode of the system it refers to.
Key features
➢ Filter purchasing documents by defining the filter bar parameters.
➢ Customize the Purchasing Documents view by selecting “Display Settings”.
7.1 Filter Purchasing Documents
Procedure
• Fill in the Document field and/or select other filter bar parameters to filter Purchasing
Documents. Click Go to apply filters.
The Document search is performed through Order Type and Order Number (from SAP
S/4HANA and/or the other systems).
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7 Monitor Payment Terms
Filters include the Source, Company Code, Purchasing Organization, and Created On
parameters.
• To restore the Purchasing Documents list after applying filters, make sure that Document
and all the other filter fields are clear, and click the Go button again.
The Monitor Payment Terms app suggests the next fields:
Field/Label Description
Purchasing Documents
Document Purchasing documents from SAP S/4HANA and/or
the other systems
Health Not mapped: the payment term from a purchasing
document is not mapped with the payment term
from the Payment Terms Governance app
No rule: the payment term is mapped with the
payment term from the system but there is no
corresponding rule
At risk: there is a controversy between the rule and
the payment term used. Choose another payment
term
On track: a proper payment term is used for this
document according to the rules for payment term
Payment Term The payment term description and payment term ID
from the Payment Terms Governance app (if
mapped).
System: payment term from SAP S/4HANA or the
other system
Proposed Suggested options of payment terms in accordance
with the rules for payment terms
Purchaser A person responsible for purchasing the products
required by an organization
Country Country from the document
Company Company name and company code
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Field/Label Description
Organization Purchasing organization
Created On Date and time when the document was created
7.2 Customize Purchasing Documents View
Procedure
• Click on the “Display Settings” icon .
Select needed Columns in the View Settings window. Click Ok to apply your settings.
• To restore the Purchasing Documents to the default view, click Restore in the View
Settings window.
LeverX ® trademark is a registered trademark of LeverX company. Other trademarks or their parts used
in this document are the registered trademarks of their respective owners and are protected by law.
Payment Terms Governance © LeverX International LLC, 2019
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