ppt creditcard
DESCRIPTION
PPT Credit cardTRANSCRIPT
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Credit Card Processing in SAP
Robert Pulaski – Sr. Manager/Architect
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Learning Points
• Why automate credit card processing?
• A basic understanding of credit card processing
• An overview of the process and related accounting for credit card processing in SAP
• Highlight some important configuration in the IMG
• Discuss implementation options and issues
• Highlight some best practices
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Why automate credit cards in SAP? Answer - Improved ROI
• Improve cash flow by reducing outstanding receivables from 30 – 90 days to 1 to 3 days
• Reduce bad debt
• Possibly reduce paper invoicing costs
• Increase transaction efficiency
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Terminology
• Merchant ID – unique id identifying the supplier(you)
• Processor (Clearing House) – provides authorization and settlement services
• Merchant Bank – supplier’s bank(your bank)
• 3rd Party Provider – provides the interfacing solution to allow SAP to communicate with the processor
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Process Flow for Credit Card Processing
Buyer gives credit card info
Supplier requests authorization and at a later time batch settlement
Processor provides authorization and settlement services
Banks issue and receive funds
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Process Overview in SAP
• Save valid sales order• Authorization request sent (real-time)• Authorization response - accept/decline (real-time)
• Ship
• Bill
• Settlement (batch)
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Save Valid Sales Order – VA01
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Authorization Response – VA01
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Authorization Response – VA01
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Document Flow – VA01
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Billing – Accounting Document – VF01
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Accounts Receivable Customer – FBL5N
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GL Account Open Item – FBL3N
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Settlement – FCC1
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Settlement – FCC1
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Settlement – FBL3N
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IMG Configuration
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IMG Configuration –Setting Up Card Types
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IMG Configuration –Setting Up Merchant ID
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IMG Configuration – Assign Merchant ID
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IMG Configuration – Account Determination
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IMG Configuration – Assign Clearing Account
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Implementation Options
• Build a custom program(s) to interface with the processor(s)
• Purchase a 3rd party solution from vendors such as Cybersource or Paymetric
• Manual (as a backup?)
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Pros/Cons Custom Programs
• Pros• Lower initial external cost • Possibly lower transaction costs• If it already works – don’t fix it?
• Cons• Custom development costs• Possible custom configuration in SAP• Maintenance of custom code
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Pros/Cons 3rd Party Solution
• Pros• No/little custom development costs• Less custom configuration in SAP• Maintenance/support of 3rd party vendor• Quicker to implement?• Can offer additional functionality beyond SAP delivered
• Cons• Initial external cost• Possibly higher transaction costs• Maintenance/support of 3rd party vendor
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Implementation Issues
• 3rd Party Installation • Servers• Access keys• RFC calls• Etc..• Make sure you have good Basis and IT people if you attempt
installation yourself. Otherwise best to have the 3rd party provider handle the installation.
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Implementation Issues
• Authorization horizon/validity• Authorization window – number of days within a shipping
confirmation window before a valid authorization can be issued• Authorization validity period – number of days an authorization is
valid before a new authorization is required• Typically 28-30 days
• Back orders can be a royal pain!
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Implementation Issues
• Additional charges• Exact total for additional charges such as freight not known• Solution – user exit
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Implementation Issues
• Split shipments• Partial or multiple shipments can require several authorizations• Solution – user-exit
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Implementation Issues
• Multiple cards on one order• Different credit limits• Different credit card owners• CRM – different capabilities (though similar process)
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Implementation Issues
• Foreign Currency• Make sure the clearing house you use can handle all currencies
required
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Best Practices
• Encrypt credit card data via either 3rd party or SAP (4.6c)• Can require OSS notes
• Limit access to credit card information via security• Only those who need access
• Additional fraud checks• Address check• CID – Card Identification Number• Can require OSS notes or user-exits
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Additional Transactions
• FCC2 – Repeat Settlement
• FCC4 – Display Logs
• FCC3 – Delete Logs
• FBRC – Reset Cleared Items
• FCCR - Standard Reports
• VKM1 – Credit Hold Report
• VCC1 – Payment Card Credit Hold Report (New)
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Different Flavors of SAP
• CRM
• SAP Retail and POS
• Etc…
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Summary
• Automated credit card processing can be efficient and enhance ROI
• In most cases buying a 3rd party solution is going to be the best option compared to building a series of in-house custom programs
• There will be lots of issues that need to be thought out carefully
• Take credit card fraud seriously
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Q&A
Robert PulaskiSenior Manager - ArchitectHitachi Consultingwww.hitachiconsulting.comDirect: [email protected] your next success! ®
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1103 / Credit Card Processing in SAP
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