1 © 2008 Paymetric, Inc. All Rights Reserved. | Confidential do not Distribute

Paymetric SD User Training

SAP Credit Card Processing

Presented by

Rupesh Shringarpure

2

Main focus

Authorizations

And how they relate to:

Sales orders

Deliveries

Invoices

3

Outline

Basic document flow in SD

Sales orders

Authorization requests

Optional adjustments to authorization requests

Authorization responses

Managing authorizations on sales orders

Deliveries

Invoices/Billing

Blocked documents

Authorization Reprocessing options

XiPay exception research

4

Solution Overview

P C M A

Custom & Legacy

Web Servers

Th

e

Paym

en

t C

hain

G

ap

XiPay Server

XiPay Adapters

Processor

s

&

Gateways

Acquiring Banks

Issuing Banks

XiPay Cartridges

Internet

Frame Relay

Extend SAP

Capabilities

Modular Enterprise

Integration

Intelligent Transaction

Processing Engine

Modular Banking

Connections A Proven Solution….

Enterprise Datacenter Banking

Relationships

5

SAP

XiPay

Sales Order

Delivery Accounting Document

Accounting Document

Invoice

Settlement Run

SD FI

Authorization via XiPay

Settlement via XiPay

Basic Document Flow (SD/FI)

6

Authorizations

Authorization Requests

Authorization Request

Authorization Response

Preauthorization

Manual authorization

7

Authorization requests

All authorization requests are generated from the SALES ORDER, in standard SAP.

Capturing credit card information

• Sales overview screen

• Payment card tab on sales order header – recommended

When will authorization occur?

• Standard SAP will ONLY authorize at “order save”

(continued..)

8

Authorization requests (continued)

How much authorization is required?

• Next delivery/service value

• Confirmed quantities

• Material availability date (Delivery related)

• Billing date (Non –delivery related)

(continued..)

9

Authorization requests (continued)

How many Authorizations?

• Multiple cards

• Limit-to-values

• Impact of deliveries

• Impact of invoices

10

Optional Auto-Adjustments to Authorizations

Note: These are NOT part of standard SAP and are strictly OPTIONAL, requiring separate coding to enable the necessary functionality.

Authorization splitting Split for future deliveries Split for future invoices Scenarios must be predictable to be automated

Authorization inflation Inflate for values not known at time of order creation Inflate for future freight/shipping/taxes Scenarios must be predictable to be automated

Forced Authorization of all, some, or none of order items Authorization regardless of Material Availability Date or Billing date

11

Authorization Responses

ALL responses are stored in the sales order Payment Card Header screen.

Authorization types:

Automatic Authorization Manual (Verbal Authorization) Pre-auth (SAP Pre-authorization)

Automatic

• Real-time • Immediate (typically), but can be done in background • Communication via RFC • XiPay • Processor • Issuing bank

(continued..)

12

Authorization Responses (continued)

Manual

• Also known as verbal authorizations

• When to perform a manual authorization

• Manual authorization button

• Capturing the manual authorization details

Manual Auth

13

An additional kind of authorization:

• Pre-auth (SAP pre-authorization)

Authorization Responses (continued)

Pre-auth

14

Authorization Responses (continued)

Response types and actions :

Approval

• Status: APPROVED

Authorization granted

No pop-ups or messages in the sales order

Non-Approval

• Status: DECLINED

Pop-up message indicating authorization issue

Saving the order will place it on Authorization Block

• Status: COMMUNICATION ERROR

Pop-up message indicating authorization issue

Saving the order will NOT place it Authorization Block

15

Managing Authorizations

Possible actions for a non-approved authorization

response:

Status: DECLINED

• Check status • Check text message • Contact internal helpdesk to verify known issues and communications • Uncheck “Authorization Block” manually (if applicable) • Re-save order to attempt a re-authorization

Status: COMMUNICATION ERROR

• Check Status • Check text message • Contact internal helpdesk to verify known issues and communications • Re-save order to attempt a re-authorization • If RFC’s are down, this may require restart of Services on XiPay Server

NOTE: Do NOT delete an APPROVED Authorization Response!

16

Sales Order screens: Payment card tab on sales order header

• Available authorizations • Approved • Not expired • Not billed

• Unavailable authorizations • Non-approved (e.g. Declined, Comm. Error or Preauthorization) • Expired • Billed

(continued..)

Managing Authorizations (Continued)

17

Managing Authorizations (Continued)

Payment card detail (from within Payment card tab) • Primary fields

• Authorization number • Auth.refer.code (XiPay transaction ID)

• Authorization amount • Authorization type • Pre-authorization flag • GL account • Merchant ID • Response text • Response codes

18

Payment Guarantee Procedure

19

Deliveries

Each delivery requires at least ONE authorization

Delivery process will check for available authorizations on the order

When available authorizations identified, there is no update of the sales order

Relevant available authorizations CANNOT be viewed within the delivery

No payment card information is copied into the delivery, it remains in the order

“Insufficient authorization” results in delivery going on credit hold

20

Invoices

Each invoice requires at least ONE authorization

Invoice process will check for available authorizations on the order

When available authorizations identified, the Sales Order is updated with a billing status against the “consumed” authorizations

Payment card information is copied into the invoice

Relevant available authorizations can be viewed within the invoice Payment Card info on Invoice header with Authorization Details

“Insufficient authorization” results in invoice going on billing block

21

Blocked Documents

Any document blocked due to payment card reasons (insufficient authorization)

• Must have the missing authorization amended to the sales order

• Will typically be “visible” to the sales order upon reprocessing, thereby automatically adjusting the amount to be authorized

T-code VCC1 (Payment Cards: Work List)

• Sales orders and Deliveries

• VCC1 versus VKM1 (Blocked SD Documents)

VKM1 lists all blocked documents

VCC1 lists Payment Card relevant documents only

• Reprocessing options – re-authorize and release

• PCMA enhanced version of VCC1: /PMPAY/PU_VCC1 Runs as a background job

Automatic authorization attempt

If auth successful, will release from credit hold

(continued..)

22

T-Code VCC1 vs. /PMPAY/PU_VCC1

VCC1 /PMPAY/PU_VCC1

23

VCC1 SD Document List

24

Blocked Documents (Continued)

T-code VFX3 (Release Billing Documents for Accounting)

• Invoices

• Reprocessing options – re-authorize and release

• PCMA enhanced version of VFX3: /PMPAY/PU_VFX3

Runs online and as a background job

Automatic authorization attempt

If auth successful, will release to accounting

25

T-code VFX3 vs. /PMPAY/PU_VFX3

VFX3 /PMPAY/PU_VFX3

26

Transaction

/PMPAY/PMENU

Paymetric PCMA

27

Authorization Reprocessing Options (continued)

Implementation Decision

Preventative options:

• Re-authorize orders in background (Program RV21A010)

• Authorization Value Split user exit at time of Order Save

• Re-authorization in background during Delivery creation

• PCMA Utility: Expiring Payment Card Authorizations Re-authorizes orders with expired authorizations Batch Job Online Program /PMPAY/PU_EXP_AUTH

28

Authorization Reprocessing Options

Corrective options:

• Manually re-save Sales Order – engages authorization logic

• Sales Orders and Deliveries on Credit Hold for Insufficient Authorization:

VCC1 Re-authorize order and release order/delivery Std SAP transaction

VCC1 in Background

Re-authorize order and release order/delivery in Background PCMA Program /PMPAY/PU_VCC1

• Billing Documents on Billing Block for Insufficient Authorization: VFX3

Re-authorize order and release billing document Std SAP transaction

VFX3 in Background

Re-authorize order and release billing document in Background PCMA Program /PMPAY/PU_VFX3

29

XiPay

Authorization exceptions

Research (authorizations and settlement)

Reporting

Printing Individual Invoices

Operations

• Independent authorizations

• Independent settlement

30 © 2008 Paymetric, Inc. All Rights Reserved. | Confidential do not Distribute

Questions