sap fs-cs solution fs320 fs-cs commission management

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© SAP AG FS320 0-1

SAP AG 2004

FS320 FS-CS Commission Management

THE BEST-RUN BUSINESSES RUN SAP

© SAP AG 2005

FS320FS-CS Commission Management

SAP for Industries 2005/Q2 50075021

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© SAP AG FS320 0-2

SAP AG 2004

Copyright

Copyright 2004 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.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.

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iSeries, pSeries, xSeries, zSeries, z/OS, AFP , Intelligent Miner, WebSphere, Netfinity, Tivoli, and Informix are trademarks or registered trademarks of IBM

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implemented by Netscape. MaxDB is a trademark of MySQL AB, Sweden. SAP, R/3, mySAP, mySAP.com, xApps, xApp, and other SAP products and services mentioned herein as well as

their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.

These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies ("SAP Group") for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP

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© SAP AG FS320 0-3

Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

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© SAP AG FS320 0-4

SAP AG 2004

Course Goal

Target Group

Content of this training course

Course overview [FS320]

Content:

Overview

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© SAP AG FS320 0-5

SAP AG 2004

Course Goal:

Course participants will gain an insight into the functionality of Commission Management.

At the end of the course participants will be able to configure simple commission models.

Course Goal

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© SAP AG FS320 0-6

SAP AG 2004

Target Group

Target group:• Project team managers and members

• Users from relevant departments

Duration: 4 days

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© SAP AG FS320 0-7

SAP AG 2004

Position the Commission System within SAP'sInsurance Solution

Identify the elements and functions in the Commission System

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

Unit Objectives

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© SAP AG FS320 0-8

SAP AG 2004

Course Overview

LiabilityLiability

Commission CaseCommission Case

ParticipationParticipation

Due datesDue dates

BonusBonus

Flat Rates and GuaranteesFlat Rates and Guarantees

Closing / Closing / SettlementSettlement

StoryStory

Commission contractsCommission contracts

OrganizationOrganization

Business PartnerBusiness Partner

Generating ProgramGenerating Program

Business Objects andBusiness Objects andActivitiesActivities

ValuationValuation

Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing ReportingReporting

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© SAP AG FS320 0-9

SAP AG 2004

Info - chapter [not part of this training course]

Business Business DataData ToolTool

Additional informative Additional informative literatureliterature

......

......

......

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© SAP AG FS320 0-10

SAP AG 2004

Part 1 [implementation of FS-CS ]

LiabilityLiability



DueDue datesdates

ValuationValuation

Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing

Commission Commission contractscontracts


Business Partner Business Partner

Mas

ter D

ata

GeneratingGenerating ProgramProgram

Business Business ObjectsObjects and and ActivitiesActivitiesPr

epar

atio

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Com

mis

sion

Cas

e

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© SAP AG FS320 0-11

SAP AG 2004

Part 2 [ daily task‘s]

„dai

lyta

sk‘s

“

„dai

lyta

sk‘s

“





Commission Commission DocumentDocument

AnalysesAnalyses

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© SAP AG FS320 0-12

SAP AG 2004

Part 3 [Periodic Tasks – Commission Clerk]

BonusBonus

FlatFlat RatesRates

Perio

dic

Task

s

ClosingClosing

SettlementSettlement

GuaranteesGuarantees

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© SAP AG FS320 0-13

SAP AG 2004

Part 4 [Reporting]

Commission Commission AccountAccount

WebWeb--Access [Access [Comm.receipiantComm.receipiant]]

Rep

ortin

g

SAP Business SAP Business WarehouseWarehouse

......

Management Report‘s Management Report‘s

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© SAP AG FS320 1-1

SAP AG 2004

Story of Insurance Inc.

SAP FS-CS Solution

Contents:

Story

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© SAP AG FS320 1-2

SAP AG 2004

Course Overview

LiabilityLiability



Due datesDue dates

BonusBonus



StoryStory


Organization Organization




ValuationValuation


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© SAP AG FS320 1-3

SAP AG 2004

Positioning• Business scenarios of Insurance Inc.

Introduction• Requirements of Insurance Inc.

SAP FS-CS Commission Solution• Short Overview• FS-CS Customers

Introduction

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© SAP AG FS320 1-4

SAP AG 2004

Automatedprocesses

EfficiencyEasy

maintainance

Encapsulation

Performance Flexibility

Technical Aspects

Drilldownreporting

Webreporting

Transparancy

Consolidation

New products

Market Challenges

New markets

New distributionchannels

Calculation of all types of

commissions & incentives

Steer & promotebusiness

Corporate Flexibility

What did we

expect?

Requirements of the Insurance Inc.

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© SAP AG FS320 1-5

SAP AG 2004




Positioning

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© SAP AG FS320 1-6

SAP AG 2004

This channel is to be used for distributing the newlife insurance product called<LIVEPLUS>.

Product /

Distributio

n

Channel

A new distribution channel called <The South Region> is to beset up.

The Establishment of a New Distribution Channel (1)

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© SAP AG FS320 1-7

SAP AG 2004

For policies that are brokered, an acquisition commission of 4% of the remuneration basis (=90% of the insurance total) is to be paid.

Remuneration

For subsequent deals (for example, increases), only a commission of 2.5% (change to basis) is to be paid.Cancellations/reductions of the insurance cover (per policyholder) are to trigger an automatic cancellation/partial cancellation.

1. Within the first year -> 100 %2. Within the second year -> prorated3. From the third year -> Commission is earned

Managers who acquire the broker participate during the first year of the agent's activity with 5% of the broker's remuneration.


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© SAP AG FS320 1-8

SAP AG 2004

As start-up assistance, an allowance for office costs of 200 - 800 EURO per month can be granted (indirect agreement).

Periodic

Remuneration

In addition, a negative flat-rate amount of 100 EURO per month is billed for IT equipment provided.

Insurance Inc. guarantees its new brokers a minimum income during the first year of 5000 EURO per month (for brokered life insurance products).

If the sales target (individually agreed upon) is met, a bonus based on the brokered sales is paid.


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© SAP AG FS320 1-9

SAP AG 2004

Remuneration due to brokers needs to be disbursed using either SAP FI or SAP FS-CD.

Disbursement

Remuneration due to company employees (managers) needs to be disbursed using SAP HR.


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© SAP AG FS320 1-10

SAP AG 2004

The broker is to be provided with various evaluations (commission account).

Reporting

In addition, FS-CS is to support various evaluations (such as products sold and sales in the different regions)Commission-relevant data must also be transferred from FS-CS to SAP BW for sales controlling purposes.

Retroactive effect on the remuneration process


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© SAP AG FS320 1-11

SAP AG 2004




SAP FS-CS Commission Solution

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© SAP AG FS320 1-12

SAP AG 2004

New business partnersare created

New standard agreements arecreated

The new standardcontracts represents thenew distribution channel

The implementation of a new distribution channelas scenario (1)

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© SAP AG FS320 1-13

SAP AG 2004

New organizationalunits are created

New individual contractsare created and assignedto positions in theorganization

To steer sales production, conditions are altered

The implementation of a new distribution channelas scenario (2)

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© SAP AG FS320 1-14

SAP AG 2004

New characteristics aremade known to thesystem

The new conditions aremaintained in thestandard contracts

The new attributes reflect thenew product in the commissionprocess

The introduction of a new product as scenario

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© SAP AG FS320 1-15

SAP AG 2004

Market conditions arereflected in commission and production data

The reports show which agent recievedor produced- how much- of which type- and when

The analysis stresses- opportunities/risks- deviations

To detect opportunities as scenario (1)

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© SAP AG FS320 1-16

SAP AG 2004

The results of the analysishas an impact on theconditions of contracts

Incentives and bonusses arechanged with regard to- organization- bonus base (profitability, production)

The remuneration is changesin regard to- amount- due dates

To detect opportunities as scenario (2)

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© SAP AG FS320 1-17

SAP AG 2004

Efficiency...● Manual processes reduced● Master and transaction data maintanance made easy

Flexibility...

● Calculation rules / methods quick to amend● Interfaces easy to configure

Transparency ...● Commission accounts allow all kind of analysis● Contracts and organization versionalized

Corporate flexibility ...● Quick reactions in an ever changing markets● Calculation of any commission & incentive

Four major advantages characterize the FS-CS...

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© SAP AG FS320 1-18

SAP AG 2004

FS-CS is part of our sales solution...

Enterprise Management Strategic Enterprise Management Business Analytics Business Intelligence &

Decision Support Accounting

Customer Relationship Management Customer Engagement Business Transaction Contract Fulfillment Customer Service

Sales Sales Planning Account & Contact Management

Acquisition & Sales Management

Commission Management

Claims Claim Notification Proactive Claims Management Claim Handling & Adjustment Claims Accounting

Policy & Product Management Market Research Product Definition &

Administration Policy Management In-Force Business Administration

Reinsurance Reinsurance Underwriting

Reinsurance Claim Handling

Reinsurance Accounting Retrocession Statistics & Reporting

Asset Management Asset Allocation Portfolio Management Portfolio Accounting Portfolio Controlling

Business Support Human Resources Operations Sourcing & Deployment Procurement Treasury Fixed Asset Management

Collections & Disbursements

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© SAP AG FS320 1-19

SAP AG 2004

... and of in mySAP Insurance

MarketingManagement

SalesManagement

CustomerService

Mobile Field Enablement

Collections & Disbursements

Commissions

Reinsurance

Financial Asset Management

Product Management

Policy Management

ClaimsManagement

Human CapitalManagement

General Ledger

Controlling

SupplierRelationshipManagement

Procurement

Projects, etc.

Business Partner

MDM XApps XI Portal Business Process Management BI KM Mobile,

etc

Strategic Enterprise Management Business Information Warehouse

Analytics

Insurance Core Applications

Insight DrivenSales & Service

NetWeaver

Business SupportApplications

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© SAP AG FS320 1-20

SAP AG 2004

SAPHR

SAPFI

SAPFS-CD ...

Collections/ Disburse-

ments...Others

Sett

lem

ent

Agre

emen

t

Com

mis

sion

Con

trac

t

Valu

atio

n an

d R

emun

erat

ion

Rul

es

Commission Case

SettlementPartner

ORG

CommissionAccounts

ContractManage-

mentSystems

BusinessWarehouse

BW

Few interfaces ensure a clear encapsulation of the FS-CS

Location of the CS in your system landscape. Now lets have a closer look at next slide. Encapsulated means that you can run any standard software to run commissions. It‘s clear what the inputs and outputs are. ..

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© SAP AG FS320 1-21

SAP AG 2004

15+ customers / 5+ countries / 3 continents

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© SAP AG FS320 1-22

SAP AG 2004

QIV 1999 … QII 2006

Rel. 4.51Charter Clients

Rel. 4.72

Rel. 4.71

5+Rel. 4.63

Rel. 4.62

Rel. 4.64

Rel. 4.61

JahreErfahrungen

Rel. 6.0Historie

Development of the Commission System Continues.

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© SAP AG FS320 2-1

SAP AG 2004

Use of Organization Management (PD-ORG)

Contents:

Organization

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© SAP AG FS320 2-2

SAP AG 2004

Describe the link to Organizational Management


Unit Objectives

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© SAP AG FS320 2-3

SAP AG 2004

Course Overview

LiabilityLiability



Due datesDue dates

BonusBonus



StoryStory






ValuationValuation


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© SAP AG FS320 2-4

SAP AG 2004

Scenario 1 [New markets – new products ]

LiabilityLiability



DueDue datesdates

ValuationValuation





Mas

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© SAP AG FS320 2-5

SAP AG 2004

New marketing channels are to be reproduced in the authorization profile.

These marketing channels are to have a bearing on possible overriding commissions for agency and area managers.

Commission clerks are to have access only to marketing channels from their own regions.

Business Scenario

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© SAP AG FS320 2-6

SAP AG 2004

Post

Settle

Accept

OffsetRemunerate

Valuate

Process

Disbursement system

commissioncontract

Salesorganization Pending/

parked

Commissionaccount

Totalsaccount

Totalsaccount

Commission caseCommission activitiesAlternative remuneration

Object information

Businesspartner

Determine

Close

Participants

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© SAP AG FS320 2-7

SAP AG 2004

manages

occupies

belongs to

belongs to

Organizational unitGeneral management

South

Organizational unitRegional management

Heidelberg

Organizational unitAgency 1

...

Organizational unitAgency 2

...

Organizational unitRegional management

Frankfurt

Staff assignmentPeter Falk

PositionRegional manager

Heidelberg

PositionRegional manager describes

Organizational unitGeneral management

North

Organizational Structure

Commission contract4711

Link to the SAP R/3 tool for creating organizational structures (PD-ORG)

Organizational units

Relationships

Job profiles

Positions

Staff assignments

Use of links

Linking commission contract partners with their contracts

Assigning commission clerks to organizational areas

Use of evaluation methods for

Determining indirect participants

Cost centers for settlement documents

Authorizations for commission clerks

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© SAP AG FS320 2-8

SAP AG 2004

User Interface: Organization and Staff Assignment

Indirect participants can be determined in terms of structure or contract. Different ones can also be sent explicitly to the interface.

Organizational Management functions and configuration are dealt with in the course HR505.

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© SAP AG FS320 2-9

SAP AG 2004

Organizational structureBusiness partner in the role of commission clerk

Clerk group

Up to EURO 3000

Up to EURO 200

Sales area A

Region 2

Position 2Position 1Manager position

Position 3

Manager positionRegion 1


Comn Contract Partner and Org. Structure (1)

The commission clerk is assigned qualitative authorizations through the user ID. The authorization concept in the Commission System is the same, in terms of structure and function, as authorization assignment and authorization checks in the R/3 system.

You can also assign quantitative authorization by stating amounts which a commission clerk can process.

The values of amount and quantity fields can be maintained for quantitative authorization checks in Commission System Customizing.

Quantitative authorizations can be grouped together into authorization groups in the case of several users.

The position of a clerk in the organizational hierarchy also decides which commission contracts the clerk can display and process.

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© SAP AG FS320 2-10

SAP AG 2004

Organizational structureCommission contract for staff

assignment

Business partner in the role of commission contract partner

Brokers

Agent

FTEFTE

FTE

Part-timer

Full-timer

Regional management 1

Sales area A

Agency 1



Position 3

Manager position

02

03

11

Comn Contract Partner and Org. Structure (2)

When you create a commission contract you give the name of an existing commission contract partner (for example, broker, full-time agent).

When you activate a commission contract, you must assign it to an organizational structure.

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© SAP AG FS320 2-11

SAP AG 2004

Assigning Commission Contracts and Positions

You can assign a commission contract by occupying a position, from the contract.

If you do not give a position, you cannot save the commission contract as active.

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© SAP AG FS320 2-12

SAP AG 2004

Workplace for Commission Clerks

Additional functions can be added

The Manager's Desktop is an HR tool that can also be used for the commission clerk's workplace in Incentive and Commission Management (ICM).

The commission clerk's workplace is a combination of cross-application functions allowing you direct access to relevant data and functions.

You can add to the function codes in Customizing (on the left-hand side of the screen) as required.

You can also define the layout of the initial screen as you require.

The right-hand side of the workplace gives you different views of the organizational structure according to the following criteria, for example:

Commission contract partner

Cost centers

Commission clerk...

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© SAP AG FS320 2-13

SAP AG 2004

Describe the link to Organizational Management

You are now able to:

Unit Summary

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© SAP AG FS320 3-1

SAP AG 2004

Display and Maintenance of Business Partners (Commission Contract Partners and Clerks)

Master Data in the Commission System


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© SAP AG FS320 3-2

SAP AG 2004

Create commission recipiants and clerks in the commission system


Unit Objectives

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© SAP AG FS320 3-3

SAP AG 2004

Course Overview

LiabilityLiability



Due datesDue dates

BonusBonus



StoryStory






ValuationValuation


Stor

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© SAP AG FS320 3-4

SAP AG 2004


LiabilityLiability



DueDue datesdates

ValuationValuation





Mas

ter D

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epar

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Com

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© SAP AG FS320 3-5

SAP AG 2004

Insurance Inc. employs a clerk for the new commission system, FS-CS. A branch of the sales organization is assigned to this clerk.

One of the tasks involved is to manage commission partners and their commission contracts.

Business Scenario

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© SAP AG FS320 3-6

SAP AG 2004

Post

Settle

Accept

OffsetRemunerate

Valuate

Process

Disbursement system

commissioncontract


parked

Commissionaccount

Totalsaccount

Totalsaccount


Object information

Businesspartner

Determine

Close

Participants

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© SAP AG FS320 3-7

SAP AG 2004

Collections/DisbursementsFS-CD

Commission SystemFS-CS

Customer RelationshipManagement

Commission Contract Partner (1)

Claims ManagementFS-CM

SAP Business Partneris a central anchor for SAP- and customer components

Business partner in the role of commission contract partner for:

Full-time sales employeesFull-time agentsPart-time agentsBrokers...

Business partner in the role of agent

Business partner in the role of commission clerk


SAP Business Partner as an anchor: SAP Business Partner manages the central, cross application data for a person or organization with which a business relationship exists.

Central data comprises, in particular, name, address and bank details.

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© SAP AG FS320 3-8

SAP AG 2004


Dialog adjustments using Customizing

Enhancement options, with no need for modification Role concept

Mapping of partner relationships

User-friendly interface

SAP Business Partner as an infrastructure: SAP Business Partner offers other components the infrastructure for seamlessly integrating their own application-specific business partner data. Application-specific data is usually contained in application-specific roles (for example, commission contract partner or commission clerk).

You can have different types of relationships between business partners.

Examples: "Mr X is a colleague of Mr Y" "Mr X is married to Mrs Z"

SAP Business Partner developed a tool for maintaining master data and simple transaction data, called the Business Data Toolset (BDT).

The BDT is not only used to support dialog maintenance, it is also used for background maintenance with Direct Input and function modules.

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© SAP AG FS320 3-9

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Management of all relevant personal, correspondence and communication data

Clear overview of each of a business partner's commission contracts

Information on training/qualifications using HR (SAP R/3 Human Resources) Qualification Management

Use of an optical archive system for storing documents.

When a commission contract is created, it is uniquely assigned to a commission contract partner.

This assignment helps identify the commission contracts for a partner in their master record. It also provides direct navigation (double click) to the commission contract.

You can assign the role of commission contract partner to several business partner types.

Example: full-time sales employee, full-time agent, part-time agent, broker

In addition to information on the commission contract partner (such as name components, personal data, addresses and communication methods), information on education and training is also displayed, through the integration of the SAP R/3 Human Resources component Qualification Management.

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© SAP AG FS320 3-10

SAP AG 2004

Definition of the Business Partner Type

Business Partner Types

EnterpriseAgentPerson

The business partner type determines the field status bar (the fields that are required for the business partner master record, which are option, hidden and displayed) when you create a business partner.

Business partner types can be used to group business partners according to the particular requirements of an enterprise.

If a business partner is created, the "business partner type" is displayed on the initial screen and the control data screen. If you display or change a business partner, this field is included in the control data.

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© SAP AG FS320 3-11

SAP AG 2004

An assignment must be made for each business partner

An assignment cannot be changed

The BP category requires a selection of fields for data entry

Example: The "Legal Form" field

Organization

Person

Group

Business Partner Categories: Attributes

When you create a business partner in the system, you need to select a category for it. The assignment of a business partner category is fixed and cannot be changed once a business partner has been created.

Established business partner categories are:

Person

Organization

Group

The business partner category specifies the fields that are to be made 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 the person, you need to enter the first name, last name, and gender etc.

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© SAP AG FS320 3-12

SAP AG 2004

Business Partner Categories: Name Fields

There are various name fields available, according to the business partner category.

Group

PersonTitleFirst name

Last name

.

.

Name

TitleName 1Name 2Partner group type..

Name

The name fields that are required for defining a business partner depend upon the business partner category and are defaulted accordingly.

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© SAP AG FS320 3-13

SAP AG 2004

Definition of a BP Category [Commission Contract Partner]

Business Partner Categories

Organization GroupPerson

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

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

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Business Partner Grouping

ExternalInternal

BP Number: Assignment Area

Group 0001 Group 0002

A business partner grouping is a classification of business partners that an enterprise can define using its own criteria. In Customizing, you also define

Number ranges for the business partners

Groups for the business partners and the assignment of number ranges.

You can also make settings for standard groups in Customizing. These settings mean that a group is automatically selected if you do not assign a business partner number or group when you create a business partner (for internal number assignment), or when you assign a business partner number to a business partner, but not a group (for external number assignment).

Number range intervals and the type of number assignment are defined for each number range.

Type of number assignment: External or internal

Determine the number range interval (which numbers are allowed).

Number ranges for business partners are used for all customers. The standard R/3 System contains number ranges for all of the groups delivered by SAP. If required, you can change the number ranges.

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© SAP AG FS320 3-15

SAP AG 2004

Create commission recipiants and clerks in the commission system


Unit Summary

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© SAP AG FS320 4-1

SAP AG 2004

Display and maintenance of commission contracts and their assignment to the organizational structure

Contents:


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© SAP AG FS320 4-2

SAP AG 2004

Create and change commission contracts


Unit Objectives

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© SAP AG FS320 4-3

SAP AG 2004

Course Overview

LiabilityLiability



Due datesDue dates

BonusBonus



StoryStory






ValuationValuation


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© SAP AG FS320 4-4

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LiabilityLiability

Commission Commission CaseCase


DueDue datesdates

ValuationValuation





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© SAP AG FS320 4-5

SAP AG 2004

The agreements between the Insurance Inc. and our commission contract partner should be maintained within the commission system.

Business Scenario

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© SAP AG FS320 4-6

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Post

Settle

Accept

OffsetRemunerate

Valuate

Process

Disbursement system

commissioncontract


parked

Commissionaccount

Totalsaccount

Totalsaccount


Object information

Businesspartner

Determine

Close

Participants

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© SAP AG FS320 4-7

SAP AG 2004

Commission contract

.......

.......

The commission contract governs the relationship between a commission contract partner and an organization

Commission Contract (1)

Contracts are generally managed in versions (time-dependent = period managed).

All documents can be managed together with the contracts, using optical archiving.

The commission contract is a legally-independent contract between the company and the commission contract partner. The commission contract partner can be a person or a legal entity.

A commission contract consists of all relevant agreements agreed explicitly with the commission contract partner, or implicitly as a global agreement in the standard contract.

Example: Guarantee agreement for a new agent

The core of the commission contract is the general contract agreement, which contains all the necessary core information.

Example: Start and end date of the commission contract

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© SAP AG FS320 4-8

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Commission contract

GlobalStandard

Individual

Standard contract

GlobalStandard

Commission contracts are easily recorded using standard contracts as a template

Agreements exist in the following forms:Global: Cannot be changed in the individual commission

contract

Standard: The standard contract provides templates that can be changed

Individual: Agreement must be specified in the commission contract

Commission contracts are usually based on standard template contracts, that differ according to the commission contract type. Example: - Standard contract "101" for agents in acc. with §84 CommC - Standard contract" 102" for brokers - Standard contract "103" for managers

Commission contract agreements differ as follows:

Agreement is made individually in the commission contract only.

- Example: Payment agreements

The agreement is in the standard commission contract, but can be modified in the commission contract.

- Example: Performance-related remuneration

The agreement applies as a global agreement. For this reason only one version of it is used throughout the company.

- For example: Valuating sales performance

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Standard agreements governing:• Reserves• Liability• Legal right to future commission• Guarantees• Performance-related remuneration• Flat-rate remuneration• Contract conditions

Global agreements governing:• Participation• Commission activities• Valuation

Individual agreements governing:• Staff assignment• General commission contract• Commission contract partner• Payment• Communication

Commission contract agreements:


Elements independent of the standard commission contract:

Valuation agreement (object reference)

Elements of the standard commission contract:

Global agreements

Standard agreements

How elements of the commission contract can be used:

The standard contract is used as a reference. These agreements can be changed if necessary or can be taken over without as they are.

- Example: Performance-related remuneration

The standard contract is used as a template. You must make individual entries, however, so that the agreements become valid.

- Example: Flat Rates and Guarantees

The standard contract does not have to be used as a reference or template. In such cases the data is entered individually for each commission contract.

- Example: General commission agreements

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© SAP AG FS320 4-10

SAP AG 2004

General

Global agreements

Communication

Liability agreements

Guarantees

Settlement/paymentFlat-rate remuneration

Perf.-related remuneration

Life

Health

Motor

Savings

Annuity

Fund-bsd

New

In-force

In the commission menu, almost each agreement is displayed on its own tab pageThe dialog screen can be configured to suit each customer's requirements using the BDTSome agreements can be divided up further accordingto company requirements


The commission contract can be found in the Commission System menu using a tab index

The commission contract tab index includes the following tab pages:

General

- Contract data, such as entry date, internal title, and so on.

Performance-related remuneration

- Condition records, for example, sorted according to line of business

Flat-rate remuneration

Settlement and payment agreements

Guarantee agreements

Communication agreements

Global agreements

- Valuating sales activities to make these agent-independent

The layout, contents and sequence of the individual tab pages can be adjusted to suit individual needs using the BDT.

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© SAP AG FS320 4-11

SAP AG 2004

Contract Bundling

Reasons for contract bundling:

•For various reaons, several legally independent commission contracts are created for a commission contract partner.

•The commission contracts of a commission contract partner can contain the same agreements that apply to each of them.

Integration in the maintenance for commission contracts:

•Contract Bundle tab page in the commission contract

•You can maintain the commission contract and the contract bundle in the transfer mode.

•Dual consistency checks are available in the commission contractand the contract bundle.

Examples of why to bundle contracts:

One commission contract per division/tarif (life, medical, motor, etc.)

Change of position and retention of contract for former organizational unit

Migration of commission contracts as they were created in legacy system

Agreements with many changes as commission contract instead of supplement

Simplification of creation/change/assignment of standard contracts

Fast and practical for brokers

Technical realization

Development took place in the BDT

Same interface layout options as in the commission contract

Same version management options as in the commission contract

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© SAP AG FS320 4-12

SAP AG 2004

Assigning Commission Contracts and Positions

You can assign a commission contract by occupying a position, from the contract.

If you do not give a position, you cannot save the commission contract as active.

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© SAP AG FS320 4-13

SAP AG 2004

Create and change commission contracts


Unit Summary

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© SAP AG FS320 5-1

SAP AG 2004

Generating Program

Contents:

Importance of the generating program

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© SAP AG FS320 5-2

SAP AG 2004

Use the generating program


Unit Objectives

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© SAP AG FS320 5-3

SAP AG 2004

Course Overview

LiabilityLiability



Due datesDue dates

BonusBonus



StoryStory






ValuationValuation


Stor

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© SAP AG FS320 5-4

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LiabilityLiability



DueDue datesdates

ValuationValuation





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© SAP AG FS320 5-5

SAP AG 2004

Insurance Inc. has decided to implement the SAP commission system and must now decide, as part of the implementation project, what additional data is required for subsequent operation, and at what level.

For this, a special commission application is generated that covers the requirements of Insurance Inc.

Business Scenario

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© SAP AG FS320 5-6

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Specialization Through Generating

Application kernel “CACS00” Generated application “ZEN01”

Samplerules

ComnCase

ComnDoc

ComnCase

ComnDoc

Con-structionexample

Dyn. obj. and methods

Indiv. rules &supplements

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© SAP AG FS320 5-7

SAP AG 2004

Commission Application

Application kernel "CACS00" Generated application “ZEN01”

Dyn. obj. and

methodsSample

rules

Class 1

Class 2

ProvFall

ProvBeleg

ComnCase

ComnDoc

Indiv. rules &supplement

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© SAP AG FS320 5-8

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Examples of Application Parts

Application kernel "CACS00" Generated application “ZEN01"

Dyn. obj. and

methodsBsp.

Regeln

Class 1

Class 2

Customizing: Global control, std contracts, (rule)categories and types

Master data: Comn contract partners, comn contracts, comn clerks, org. management

Rules: Valuation, remuneration, distribution ...

Transaction data: Comn case, comn doc, summarization

Rules: Determination, grouping, summarization, account assignment

Class 1

Class 2

Process: Commission, settlement, ...

ComnCase

ComnDoc

Indiv. rules &supplement

Document -> data fields

Determination -> key fields

Totals tables -> both

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© SAP AG FS320 5-9

SAP AG 2004

Screenshot Generating Program

Drag and Drop

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© SAP AG FS320 5-10

SAP AG 2004

Customer-Specific Attributes

Additionalattributes forvaluation

Additional attributes forremuneration

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© SAP AG FS320 5-11

SAP AG 2004

Generating Program Options

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© SAP AG FS320 5-12

SAP AG 2004

Use the generating program


Unit Summary

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© SAP AG FS320 6-1

SAP AG 2004

Commission activity agreements

in the Commission System

Business objects

Contents:

Business Objects and Activities

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© SAP AG FS320 6-2

SAP AG 2004

Define triggering methods, activity characteristics and activity groups

Explain what business objects are


Unit Objectives

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© SAP AG FS320 6-3

SAP AG 2004

Course Overview

LiabilityLiability



Due datesDue dates

BonusBonus



StoryStory






ValuationValuation


Stor

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© SAP AG FS320 6-4

SAP AG 2004

LiabilityLiability



DueDue datesdates

ValuationValuation





Mas

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© SAP AG FS320 6-5

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Post

Settle

Accept

OffsetRemunerate

Valuate

Process

Disbursement system

commissioncontract


parked

Commissionaccount

Totalsaccount

Totalsaccount


Object information

Businesspartner

Determine

Close

Participants

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© SAP AG FS320 6-6

SAP AG 2004

Post

Settle

Accept

OffsetRemunerate

Valuate

Process

Disbursement system

commissioncontract


parked

Commissionaccount

Totalsaccount

Totalsaccount


Object information

Businesspartner

Determine

Close

Participants

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© SAP AG FS320 6-7

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Business Objects (1)

The commission relevant business object <insurance policy> comprises the following:

At the <policy> level, general valid information is received:

LoBStart of insuranceEnd of insurance

At the <price> level, general valid information is received:

TariffMonthly insurance premiumAmount insured...

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© SAP AG FS320 6-8

SAP AG 2004

Business Objects (2)

The commission relevant business object <insurance policy> comprises the following:

No valuation is made at the <policy> level

A valuation is run at the next level <Tariff>

Calculation of e

ach risk

inclusion

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© SAP AG FS320 6-9

SAP AG 2004

Commission Activities

Definition of Commission Activities:Information on changes made to the business case, which are transferred to FS-CS from an upstream system (such as a policy management system).

Also called: Change reasons, transaction types, subtransactiontypes

Why does FS-CS need this information?FS-CS calculates the commissions by looking at the activities performed, which are relevant to commission.In addition, the upstream system provides ICM with the following:

General information on the commission caseInformation on the participantsObject dataInformation on changes that have been made (including the triggering method)

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© SAP AG FS320 6-10

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Triggering Methods and Activity Characteristics (1)

Triggering methodsTrigger/information from the upstream system:

Change type or transaction key with which the object in the calling system was created, moved or changed, for example,

Creation of a new insurance policyTariff changeReinstatement...

Are assigned to an activity type in Customizing using the activity characteristic

Activity characteristicsUsed to determine the activity types from the triggering methods

Either through direct assignmentOr through a (customer-specific) function that derives the activity type on the basis of further details

The triggering methods (input field in the commission case) are used as triggers for determining the activity types. In addition, the triggering methods are linked to the activity types using activity characteristics (with which the commission module works internally). The activity type (as one of several criteria) is used to determine the corresponding remuneration type.

The activity characteristics can be used as additional selection criteria when determining the remuneration type.

In many policy management systems, the triggering methods are so detailed that it is possible to derive the activity type from them without the need for other conditions.

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© SAP AG FS320 6-11

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Triggering Methods and Activity Characteristics (2)

Activity group

Activity characteristics

Determining method

Activity characteristics Activity type

Activity type

Optional

Required

Vorsystem

FS-CS

Triggering methods

The indirect derivation of the activity characteristic, using the determination method, is not optional:

For example, you can determine the activity characteristics, sich as fine selection conditions, using a user exit.

Activity group:

The formation of commission activity groups allows classes of commission activity types to delimit one another. A commission activity type is therefore assigned to just one commission activity group.

On group level, your own rules can exist (such as clearing values within just one specific group).

Possible commission activity groups for insurance include:

- Acquisition activity

- Reset

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© SAP AG FS320 6-12

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Activity Type

Activity Group


Activity typeActivity characteristics

Activity types...Are derived from the type of change made to the business caseRepresent the type of sales activityDetermine the commission along with the participation role and the commission agreements (commission and remuneration types)Always have a unique reference to the triggering method

Possible activity types (some examples):

New business

Increase

Changes

Tariff change

Prolongation

Cancellation reset

The various agent activities are to be derived from the activity types, for example, "acquiring a new contract" or the "completion of insurance cover". Example: The "tariff change" change reason (triggering method) only means that the tariff was changed in a contract. In ICM, this change reason can trigger different activity types (maintenance of in-force business, completion, or changing insurance cover).

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© SAP AG FS320 6-13

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Activity Group

Activity Group


Activity typeActivity characteristics

Activity groups...Group activity types, whereby an activity type is assigned to one activity group.

Allow activity types to be passed on to several objects

In an activity group, activity types from higher-level object structures can be passed on to lower-level object structures (if this option is active) Example:

Different activity types were assigned to activity group AP (for example, NEW with priority 80 and AMEND with priority 60). If, in the case of a higher-level subobject in the commission contract, a business transaction has the activity NEW, while the lower-level subobject has the activity AMEND, the activity NEW is used for the lower-level subobject also, as the priority is higher.

The activity types within a group are clearly differentiated. Only one activity type can be found in the group with reference to a specific activity.

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© SAP AG FS320 6-14

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Activity Types: Example

Contract Activity type Result

Liability insurance remains unchanged non

Valuation and (resulting) remuneration possible

Old part comprehensive cover is cancelled

change Valuation and (resulting) remuneration possible

New part comprehensive cover is started NEW

Valuation and (resulting) remuneration possible

Scenario: The policyholder has purchased a secondhand car with the result that the motor insurance policy must be changed.

Object types

8000: Contract

8010: Tariff

8020: xx

8030: Risk

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© SAP AG FS320 6-15

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Scenario "Change to car insurance":The policyholder would like to include a new risk in the existing

car insurance policy (for example, passenger insurance).

Objekttypen

8000: Vertrag

8010: Tariff

Activity on the contract level -> <Change>(since contract for car already exists)

Activity on the tariff level -> <New>(since the new risk is to be included)

Possible Interaction Between Activities and Objects (1)

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© SAP AG FS320 6-16

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Objekttypen

8000: Vertrag

8010: Tariff



5% commission is, for example, remuneratedbased on the new business.

Without inherita

nce of

activitie

s


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© SAP AG FS320 6-17

SAP AG 2004



Objekttypen

8000: Vertrag

8010: Tariff



3 % commission is, for example, remuneratedbased on the contract change.

Withinherita

nce of

activitie

s

<Change>


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© SAP AG FS320 6-18

SAP AG 2004

Define triggering methods, activity characteristics and activity groups

Explain business objects


Unit Summary

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© SAP AG FS320 7-1

SAP AG 2004

Valuation in the Commission System

Contents:

Valuation

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© SAP AG FS320 7-2

SAP AG 2004

Describe the valuation process


Unit Objectives

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© SAP AG FS320 7-3

SAP AG 2004

Course Overview

LiabilityLiability



Due datesDue dates

BonusBonus



StoryStory






ValuationValuation


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© SAP AG FS320 7-4

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LiabilityLiability



DueDue datesdates

ValuationValuation





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© SAP AG FS320 7-5

SAP AG 2004

Post

Settle

Accept

OffsetRemunerate

Valuate

Process

Disbursement system

commissioncontract


parked

Commissionaccount

Totalsaccount

Totalsaccount


Object information

Businesspartner

Determine

Close

Participants

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© SAP AG FS320 7-6

SAP AG 2004

Commission Calculation (Valuation vs. Remuneration)

In various commission systems, commission is calculated in an algorithm.

In Commission Management (FS-CS), this calculation is done in two parts:

Valuation calculation

(based on business objects)

Remuneration calculation

(based on participants)

Real-time contract:

End of premium payment = end of insurance term - often when payment is also made.

Long-term contract:

The end of premium payment is before the end of the insurance term (often 5-20 years) - payment can be made at any time during this period

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© SAP AG FS320 7-7

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Valuation

Agent Miller sells a life-insurance policy (= sales activity) and now the commission due must be calculated.

During the valuation process,

the value of the sales activity for the

enterprise is determined

(based on business objects).

Standardized throughout the enterprise

Instrument for basic control of sales activity

Real-time contract:

End of premium payment = end of insurance term - often when payment is also made.

Long-term contract:


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© SAP AG FS320 7-8

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Valuation

The valuation is run when a business object- is created- changed- or reversed

An object that is relevant to commission (business object) can have more than one valuation.

The valuation is done by using defined valuation types that were defined in each of the object types.

The valuation types are used for accessing the required "arithmetic unit" (tool) such as valuation procedures or valuation methods.

The result of the caclulation is used for calculating the commission for agent Miller.

The valuation results are provided for the remuneration process, whereby the valuation MUST take place beforehand.

Valuation is completed before remuneration is started:

If valuation is not to be carried out, for example, if the remuneration is to be calculated based on 100% of the sales activity, then the relevant value (for example, monthly payment of 100%) can be "put through" the valuation process.

Reversal of an insurance object:

In this case, valuations of all types are determined again.

The valuation is not reversed on its own, but always with the corresponding commission case document. When a commission case is reversed, its commission case document is reversed also.

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© SAP AG FS320 7-9

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Valuation

A change to the valuation conditions (for example, for insurance tariff<LIFEPLUS>) affects all future businesswhere the commission uses this valuation.






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© SAP AG FS320 7-10

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Commission-relevantObject

Commission-relevantObjectCommission-relevant

ObjectCommission-relevantObjectCommission-relevant

Object

Commission-relevantObject Valuation type n

Valuation type 1

Valuation type 2Tool

(for example, own calculation tool)

Tool(for example, own calculation tool)

Determination of valuation type and valuation procedure:

Basic Design

Valuation type:

This is used to classify different valuation algorithms. The commission valuation agreement stipulates which valuation types are used. Valuation types are used as a company-wide steering instrument. Depending on the valuation type, a decision is made regarding which valuation object type and which valuation procedure should be called to determine the result.

Possible valuation types in an insurance company are:

- Commission basis

- Production value

- Number of persons

- Charge factor value

Logical service:

Technical tool in the commission system for finding a calculating method. You can define your own calculation method here instead of the logical service.

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Example: Valuation Process

The following applies for the example below:2 level object hierarchy:

Object: "Insurance Policy" (8000) and

Subobject: "Tariff" (8010)

If a business case is registered for the "Tarif" (8010) subobject, then a value is to be determined (valuation) for this business.

This value determination is then to be used to calculate a suitable remuneration.

For example, 90% of the insured amount for life insurance is used for subsequent calculations.

The percentage rate is to be stored in tables so that the relevant department can still make changes if required.

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Example: Valuation Process

Scenario:

Agent Miller's commission contract statesthe following in the global agreements:

-90% of the insured amount is used for the commission calculation for a real-time contract

-100% of the insured amount is used for thecommission calculation for a long term contract.

(This applies to all agents with the same standard contract -individual agreements cannot be made.)

Real-time contract:

End of premium payment = end of insurance term - often when payment is made also.


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Valuation Using Condition Technique (1)

1

2

3

Valuation process

As the insured sum is always entered into the commission system at Tariff level (for example, 8010), a valuation type (for example, BEW) must be assigned to the subobject (for example, xx).

Since the valuation type will be used to find a relevant calculation procedure, a tool (i.e. SAP SD cond. technique) must be assigned to the valuation type.

If you use as a tool the SAP SD cond. technique, than a link to the used calculation procedure (for example,

CS-PREM) will be maintained.

Scenario

First of all, a valuation type is determined

Then the tool is determined

And then the calculation procedure is determined

Calculation procedure:

Determines the conditions allowed for each document and defines their sequence in the document.

Calculation procedures are used in the following areas, for example:

- Price determination in sales

- Overhead calculation in product costing and CO internal orders

- Determination of accrued cost in the profitability analysis

- Message control (printed confirmation, EDI messages electronic mails)

- Account determination

- Determining taxes on sales/purchases

- Cost center selection

- Price determination in resource planning

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4

5

Valuation process

A condition type (for example BEW) is assigned to the calculation procedure (for example, CS-PREM), so that the relevant formulas (ABAP) can be defined in the calculation procedure (“processing procedure“).

A formula must be defined, in the calculation procedure defined above, for condition type BEW so that the

system can be given the starting value (insured amount).

Scenario

The condition typeis determined next

And then the formula


Condition technique

Hierarchy of components that define data combinations designed to trigger an action. The constellations defined by SAP and the customer are searched for according to a specific hierarchy. The condition technique is used, for example, by SAP-SD for pricing.

Condition type

Identifies the characteristics of a condition. For example in pricing, different condition types are used to distinguish between a discount that refers to a net price and a discount that refers to a gross price.

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6

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Valuation process

Essentially, only 90% of the insured amount should be used as a basis for further calculations (remuneration). For this reason a suitable table must be created for defining the percentage rate. However, to enable several tables with different key fields to be created for one calculation type, access sequences must be defined when you use condition tables.

You may have to include fields in the field list for condition tables so that the correct tables can be set up. The value (90%) is then entered in the condition table (for example, 610).

The required field transport must be defined so that the calculated values can be used for further calculations (remuneration).

Scenario

The access sequence is determined next

And then a conditions table

And, finally, a field transport is carried out


Condition table:

Table that defines the structure of condition record keys. The key consists of a variable part, which represents one or more fields and of a fixed part, which is identical for all condition records.

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Logical service SD-PREM Service ID (calculation procedure=CSPREM), parameter 1 (Bew = results condition type) parameter 2 (PB = valuation)

Access sequence ZBEW

Condition table A610

A610

Line of business %11 90

Fields: Line of business

Table Condition Excl.

A610

Field catalog:

CACS_S_CUST_COND

Field 1 - n

Table definition

Valuation procedure SD-PREM

Condition typeCondition

ABAP

Basis form.Calculation formula

Sequence

Valuation type: BEW

Simple Valuation Using Condition Technique

Valuation procedure:

Valuates an activity neutrally and delivers valuation types for commission determination. Valuation is carried out by using the correct method for the valuation type, or directly by assigning a result value entered in the system.

In the insurance context, the procedure valuates an activity neutrally, irrespective of which agent carried it out.

Condition record:

Data record that stores a condition, or condition supplements. Conditions include:

- Prices

- Discounts and surcharges

- Taxes

- Messages

Access sequence:

Combination of several accesses to condition records. The access sequence defines the order in which the system searches for condition records.

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Describe the valuation process


Unit Summary

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© SAP AG FS320 8-1

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Contents:

Performance-Related Remuneration

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Unit Objectives

Explain the importance of remuneration types

Explain the process of remuneration clearing

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Course Overview

LiabilityLiability



Due datesDue dates

BonusBonus



StoryStory






ValuationValuation


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LiabilityLiability



DueDue datesdates

ValuationValuation





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Post

Settle

Accept

OffsetRemunerate

Valuate

Process

Disbursement system

commissioncontract


parked

Commissionaccount

Totalsaccount

Totalsaccount


Object information

Businesspartner

Determine

Close

Participants

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Commission Calculation (Valuation vs. Remuneration)

In various commission systems, commission is calculated in an algorithm.

In Incentive and Commission Management (ICM), this calculation is done in two parts:

Valuation calculation

(based on business objects)

Remuneration calculation

(based on participants)

Real-time contract:

End of premium payment = end of insurance term - also when payment is often made.

Long-term contract:


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Remuneration

Agent Miller sells a life-insurance policy (= sales activity) and now the commission due must be calculated.

During the remuneration process, the remuneration amount is calculated based on the assigned valuation

(based on participants.)

Laid out in standard contract

Conditions may be changedindividually (commissioncontract)

Instrument for basic control of sales activity

Real-time contract:

End of premium payment = end of insurance term - also when payment is often made

Long-term contract:


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Remuneration

Changes to conditions in the standard contract (for example, standard contract <101> for full-time agents) affectall future business where the commission contracts involved refer to this standard contract (for example, <101>).






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Performance-Related Remuneration Types

There are three types of remuneration:Direct remuneration: Relevant for disbursement

Indirect remuneration: No disbursement

Statistical remuneration: No disbursement

Remuneration types control whether the value determined as part of remuneration is:

Paid out directly (direct remuneration)

Used as a basis for other remuneration (indirect remuneration)

Used for other purposes (for example, statistics) (statistical remuneration)

The following are examples of evaluation types:

Direct: Signing commission

Indirect: Points system, collected amounts, overriding commission

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Remuneration type n

Remuneration type 1

Remuneration type 2

Tool 1[ I.e. SD-condition technique]

Tool[I.e. own calculation tool]

A “calculation” tool will be assigned to a performance-related remuneration type

One tool can be used for several performance-related remuneration types

The process for calculating and determining (value) is assigned using the tool (i.e.: SAP SD condition techique)

Perf.-Related Remuneration Type <-> Log. Service

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Percentage values

Promille values

Fixed values (for example, Euro amounts)

It is also possible to define intervals or scales for these conditions.

Condition Forms

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Remuneration type n

Remuneration type 1

Remuneration type 2

Account assignment 1

Account assignment type n

Perf.-Related Remuneration Acct Assignment

Only one account assignment type can be assigned to a performance-related remuneration type

One account assignment type can be used for several performance-related remuneration types

Account assignments types are used to determine cost andwage types as well as other values relevant for settlement

Account assignment type:

Business key containing all account assignment information relevant for posting (such as posting key, cost type and salary type). Assignment is carried out correctly in the downstream systems by means of the account assignment types.

An account assignment type contains information on the two possible forms of account assignment (settlement account assignment, cost account assignment).

- In the settlement agreement of the standard commission contract, settlement types are assigned to settlement account assignments.

- In the remuneration and guarantee agreements, remuneration types are assigned to cost account assignments.

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Guaranteeremuneration type 1

Guaranteeremuneration type n Remuneration type n

Remuneration type 1

Remuneration type 3

Remuneration type 2

In the standard guarantee agreement, performance-related remuneration types, for which a guarantee has been granted, are assigned to guarantee remuneration types

Guarantee Remun. Type<-> Perf.-Related Remun. Type

Whereas you can assign a performance-related remuneration type to several guarantee remuneration types, we do not recommend this for business reasons.

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Settlement type 1

Settlement type n Remuneration type n

Remuneration type 1

Remuneration type 3

Remuneration type 2

Settlement Type Perf.-Rel. Remuneration Type

In the standard settlement rule, performance-related remuneration types that are to be settled together are assigned 1-n to settlement types

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Customizing: Remuneration for Standard Contracts

Reference to a determination

rule

Standardcontract

Contractgrouping

Remuneration type

Remuneration typerelevant in terms ofdetermination rule

Calculation procedure +results conditions

Tool

Link totype of calculator

Commission and product

categorization Calculator(Condition determination

and calculation)

"01" StandardagreementComb. ID

LoB Activity type Comn contract type Hrs Indiv. Life New business Full-time agent 5 %Life In-force Full-time agent 4 %Motor New business Part-time agent 4,5 %

A standard remuneration agreement is defined in the standard contract (category 01).

The standard remuneration agreement refers to a primary determination rule for remuneration.

In the individual set of determination rules (which can be defined for each customer) you can find remuneration types in conjunction with the values of freely defined attributes. The advantage of this is that you can have separate calculation processes for different remuneration types (for example, Life is based on different initial values from Motor).

The remuneration type is used to establish a determination and calculating service. The SAP condition technique can be used at the moment (percentage rates or other values are found and processed in freely-definable formulas (calculation procedures to ABAP-Coding)). There are plans to include other calculation tools.

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Individual Commission Contracts

Reference to a determination

rule

Standardcontract

ContractJohnSmith

Contractgrouping

Remuneration type

Remuneration typerelevant in terms ofdetermination rule

Calculation procedure +results conditions

Tool

Link totype of calculator

Commission and product

categorization Calculator(Condition determination

and calculation)

"01" StandardagreementComb. ID

When drawing up commission contracts for individual commission contract partners, you can enter individual condition records (usually percentage value as a commission rate) that differ from the standard contract.

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Individual Agreements

Practical example:

According to legal or contractual conditions, it can be that remunerations are only paid out up to a certain amount for each business transaction (commission case). Using remuneration clearing in the commission module, it is possible to reduce the calculated remunerations (proportionally, for example), so that these “remuneration limits” are observed.

If negative remunerations (due to reversal, for example) are not called back immediately by the insurance representative, but these amounts are to be cleared later with positive remunerations, remuneration clearing is still required (secondary liability).

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© SAP AG FS320 8-18

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Remuneration Clearing

Remuneration ClearingRemuneration Clearing

Remuneration Clearing

Practical example:

According to legal or contractual conditions, it can be that remunerations are only paid out up to a certain amount for each business transaction (commission case). Using remuneration clearing in the commission module, it is possible to reduce the calculated remunerations (proportionally, for example), so that these “remuneration limits” are observed.

If negative remunerations (due to reversal, for example) are not called back immediately by the insurance representative, but these amounts are to be cleared later with positive remunerations, remuneration clearing is still required (secondary liability).

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Reasons for Remuneration Clearing

Ceiling amount

Offsetting

Other...

Examples:

It may be a legal or contractual requirement to only disburse remunerations up to a certain amount for each business transaction (commission case). You can use remuneration clearing in the commission module to reduce the calculated remunerations (for example, proportionately) so that the "remuneration limits" are not exceeded.

If the insurance representative does not immediately demand the return of negative remunerations (for example, due to a reversal), but wants these amounts to be cleared with positive remunerations later on, a remuneration clearing is also required (secondary liability).

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Procedure: Remuneration Clearing (1)

Selection ruleWhich remuneration should be included in the analysis?

for example, Remuneration type APL

for example, Remuneration type APK

Grouping RuleDo different types of remuneration need to be analyzed separately?

Remuneration Remuneration Remuneration Remuneration of all participants of the current business case

You can choose Selection Rules to make the required remuneration (remuneration rows) available to other processes in remuneration clearing.

Remuneration clearing rule:

Description of remuneration clearing in the commission system.

The remuneration clearing rule contains information for the clearing procedure. It is stored in the remuneration clearing agreement.

Remuneration clearing:

Group of all agreements in which additional rules are agreed upon (with reference to a commission case and/or a business object and/or a participant or subquantities in performance-related remuneration) that influence the way in which the commission is determined.

In most cases, there are offsetting or ceiling amount rules that influence the remuneration amounts for business and for general reasons.

Remuneration type:

There are different types of remuneration, for example, flat-rate remuneration and performance-related remuneration. Some types are already in the system and a company can choose to hide them or add their own. Remuneration (for example, its frequency) can be governed by the remuneration type. There are usually different liability rules for different remuneration types.

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Procedure: Remuneration Clearing (2)

Remuneration type APL

Grouping ruleWhat criteria should be used for analyzing the remuneration?

Calculation ruleNew remuneration results may be determined

Possible result of the remuneration clearing:• New detail rows for remuneration

• New remuneration amounts

The selected data is processed as per the group rulings in groups in the subsequent calculation rule (ABAP).

You can add your own criteria to the grouping criteria. This is ensured by the transfer of "customer fields" to the remuneration document structure.

Examples:

Offsetting:

You should only offset the same type of remunerations against each other (positive and negative), for example, Life closing commission). The remuneration type is a useful grouping characteristic for this.

Ceiling amount:

The total of the remunerated amounts for particular remuneration types may not exceed a certain amount. You can use the remuneration group as a useful grouping characteristic for this (providing you have assigned the remuneration types to this remuneration group in customizing).

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Explain the importance of remuneration types

Explain the process of remuneration clearing

Unit Summary

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Contents:

Liability: Overview

Liability agreement

Liability period

Liability type

Liability rule

Liability process

Liability in the Commission System

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Describe the use of liability agreements


Unit Objectives

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LiabilityLiability



Due datesDue dates

BonusBonus



StoryStory






ValuationValuation


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Course Overview

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LiabilityLiability



DueDue datesdates

ValuationValuation





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Insurance Inc. agreed various liability rules and periods with their agents for commission-relevant transactions.

Business Scenario

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Overview

The commission contract partner (for example, agent) is liable for the results of business he or she conducts on behalf of the company.This liability is based on special rules laid out in the general contract conditions. In the Commission System, these rules are known as the liability agreement.If remuneration has been paid out, and the results for which it has been paid out are somehow reduced, the insurance company can demand that the remuneration be paid back either wholly or in part (partial recall is controlled using liability rules).

An agent is only liable for remunerations that were disbursed for a result that she or he obtained personally.

Example: A liability insurance policy that runs for five years but is reversed after only one year. Based on the agreement in the insurance contract, the commission can be partially or completely recalled by the insurance company.

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Post

Settle

Accept

OffsetRemunerate

Valuate

Process

Disbursement system

commissioncontract


parked

Commissionaccount

Totalsaccount

Totalsaccount


Object information

Businesspartner

Determine

Close

Participants

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Liability Process

Liability analysis is triggered for every valuation that shows anegative value in the difference valuation for the current commission case. This includes the following steps:

Determining a reduction (minus in the valuation)

Determining the valuation history

Recalling disbursement

Determining remuneration entitlement in the case of liability

Determining the remaining liability share

Determining remuneration earned

Liability analysis is finished when all valuations are positive.

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Liability Agreement

Group of liability rules in the general contract conditions.

An element of the commission contract that cannot be drawn up on an individual basis.

Contains all the required liability types and is assigned in the standard contract.

Liability agreement:

A commission contract partner is liable for the results of business she or he conducts on behalf of the company. If remuneration has been paid out, and the results for which it is paid out are somehow diminished, the sold-to party can demand that the remuneration be paid back either wholly or in part (partial recall is controlled using liability rules).

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Liability Period

Period during which a commission contract partner can be held liable for the activities he or she performs.Liability periods can be agreed for all types of performance-related commission (acquisition, support, indirect participation, and so on). The length of the liability period may depend on attributes such as line of business, product and/or insured period.If the customer pays the premium over the whole liability period, then the commission may be considered as having been earned.

Liability periods can also depend on other factors, such as a product ("bundle") or the duration of the insurance policy.

The advantage of fixed liability periods is that they are determined at the same time as the commission.

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Liability Type

Determination of liability period and calculation rule used to recall whole or part of remuneration in cases where the commission object (for example, an insurance policy) is reduced or canceled.The liability type is defined in performance-related remuneration. It refers to a “liability tool” (liability rule).The liability type can be determined as follows:

By choosing the liability type, independently of the remuneration, using a determination mechanism (assignment procedure) in the standard liability agreement, with freely-defined attributes.By assigning the liability type to individual remuneration types

You can have exactly one liability agreement for each standard contract. This agreement contains all the necessary liability types.

The determination function uses a set number of determination tables with customer-specific key fields - this set number is defined in the generating program.

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Liability Rule

The liability rules determine

the remuneration amounts that can be recalled

from the agent(s) if there is a negative

business change (for example, cancellation or

a reduction of coverage).

This means that you can use more than one commission liability rule for a remuneration type in a commission case.

For direct participants, it is also possible to use different liability rules for a remuneration type in a commission case (depending on each commission contract type).

There are usually different liability rules for different remuneration types.

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Agent Miller has acquired a life insurance contract with a customer, Mrs. Smith.

After 14 months, Mrs. Smith requests that the insurance coverage be reducedin the life insurance contract.

The cancellation agreement of the insurance company means thata scaled cancellation liability has been agreed upon for the commission on the acquisition of life insurance policies.

• Cancellation within 12 months: 100% cancellation liability• Cancellation between 12 and 24 months: 50 % cancellation liability• Once this period of time is up, the commission is not recalled.

The example above requires a 50% cancellation liability.This means that agent miller has to pay 50% of the acquisition commissionearned back to the insurance company.

Liability: Example (1)

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Calculation:

1. Business case on 01.08.2002(new acquisition of a life insurance policy with an insured amount of USD

100,000)

Valuation result = USD 90,000 (e.g. 90% of USD 100,000 insured amount)Paid commission (APL) USD 4,500 (e.g. 5% of the remuneration base)Liability period (01.08.2002 -01.08.2004)

2. Business case on 01.02.2003(reduction of the insured amount for the life insurance to USD 60,000)

a) Valuation result = USD -36,000 (= 90% of USD -40,000)b) Recall (commission) USD - 1,800 (5%, cancellation liability = 100 %)


Example 1

Reduction in

the

first y

ear

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Calculation:

1. Business case on 01.08.2002(new acquisition of a life insurance policy with an insured amount of USD

100,000)

Valuation result = USD 90,000 (e.g. 90% of USD 100,000 insured amount)Paid commission (APL) USD 4,500 (e.g. 5% of the remuneration base)Liability period (01.08.2002 -01.08.2004)

2. Business case on 01.10.2003(reduction of the insured amount for the life insurance to USD 60,000)

a) Valuation result = USD -36,000 (= 90% of USD -40,000)b) Recall (commission) USD -900 (5%, cancellation liability = 50 %)


Example 2

Reduction in

the

second year

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Describe the use of liability agreements


Unit Summary

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Participation

Participation agreement

Forms of participation

Participation roles

Participation constellations

Contents:

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Explain what the participation agreement covers

Describe the forms of participation in the Commission System

Configure participation roles

Configure participation constellations


Unit Objectives

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Course Overview

LiabilityLiability



Due datesDue dates

BonusBonus



StoryStory






ValuationValuation


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LiabilityLiability



DueDue datesdates

ValuationValuation





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Insurance Inc. pays commission both to direct and to indirect participants in a commission case.This means, for example, that Insurance Inc. pays commission to the commission contract partners and to the people who support them.

Business Scenario

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Participation Agreement

The participation agreement governsWhich role a partner may take in the acquisitionWhich participants (roles and commission contract types) the partner may work together with (participation constellation)

Forms of participation:Several partners are involved in an acquisitionThose acting as agents for contracts and those taking care of in-force business can all profit from an insurance policyIndependent commission contract partners and brokers can pay commission to their own agents for activities (for example, difference commission)Managers, consultants, trainers, and so onPeople looking after commission contract partners (overriding commission)

Participation:

A participation represents the services provided by more than one participant, and displays the summary of more than one direct participant. Participations can differ within a commission case. This is, for example, because the person supporting in-force business (who may also be the direct participant) can switch between the validity start dates for two object versions.

Example:

- As part of business development, life insurance and health insurance are sold in an insurance policy. Agent one was responsible for the life insurance, and agent two for the health insurance. Both are participants in their commission.

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Examples

Positions (types)Sub-agentIndependent agentDistrict managerRegional director

Participation rolesMain producerCo-producerIn-force business supportSupporting consultantManagementCommission contract partner administrator

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Comncase

Partic-ipation

Partic-ipant

Partic-ipationrole

% rateComn

% rateProduct

Comncont no.

Standardcomncontract

Comn contdirectParticipnt

Participtnconstelltn

5432 1 1 Mainagent

0 100 234567 Independentagent

27

5432 1 2 Sub-agent

50 0 333444 Part-timeagent

27

5432 1 3 Sub-agent

50 0 333555 Part-timeagent

27

Example: Direct Participants

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Direct participants

BB

Indirect participants

Commissioncase

Manager 11

Commission-contract-relatedparticipation

Constellations allow you to control remunerationwith direct participants

Manager 12

CCase-relatedparticipation

FTA

PTPTCase-relatedparticipation PT

BBObject-relatedparticipation• Customer• In-force

Structure-relatedparticipation

Structure-relatedparticipation

Manager 3

Organizational Structure and Participation Roles

Direct participant:

Commission partners who are directly involved in the commission case are direct participants. The partners participating can be on the same hierarchy level, or at a higher or lower level to each other.

Indirect participant:

Commission contract partner who has been determined. The participant who is indirectly involved is, for example, derived from the item in the organizational structure. You cannot divide up the remuneration of an indirect participant.

Participation role:

Describes the type of participation in a commission case. An insurance policy enables the following types of participation in a commission case:

- Sole producer

- Co-producer

- Consultancy

- Support

- Management

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© SAP AG FS320 10-10

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Sales

Sales management

Sales area 1

Manager sales area 1

Consultant Life

Consultant Non- life

Sales area 2

Sales area 3

Manager sales area

3

Manager sales area 2

Regional management

11

Regional management

12

Regional management

13

Management11

Management13

Management12

Agency 111

Agency owner 111

Agency 112

Agency owner 112

Subagency1322

Subagent1322

Subagency1323

Subagent1323

Agency 133

Agency owner 133

Agency 131

Agency owner 131

Employee agent 1311

Employeeagent 1312

Agency 132

Agency owner 132

“Supporting”: ComnShare

“Involved”: DifferenceComn

“Support”: Overriding

“Support”: Overriding

Example of Structure-Related Participation

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Commission contract "7"for Mr. Higgins

Commission contract "8"for Mrs. Miller

Between01.01.200x and31.12.200xMrs. Hill always receives 20% of the direct remuneration.

Example of Contractual Participation

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Participation Entitlement Categories

Entitlement categories classify the entitlements of the participants

Structural participation for managers

Structural participation for consultants

Activity-related participation

Participation based on commission contract

Participation based on object (without functions)

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Constellations define how many people can participate in a transaction, and in which role.

This helps determine default values for distributing direct and indirect remuneration in cases where no alternative distribution rates have been sent to the interface.

Participation Constellation

Participation constellation:

A participation constellation comprises commission contract types and participation roles. The commissions system recognizes these participation constellations and is able to include them when determining the commission calculation and valuation if required.

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© SAP AG FS320 10-14

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Explain what the participation agreement covers

Describe the forms of participation in the Commission System

Configure participation roles

Configure participation constellations

Unit Summary

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© SAP AG FS320 11-1

SAP AG 2004

Determine due dates

Contents:

Due dates

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to describe the determination of the due dates


Unit Objectives

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Course Overview

LiabilityLiability



Due datesDue dates

BonusBonus



StoryStory






ValuationValuation


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© SAP AG FS320 11-4

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LiabilityLiability



DueDue datesdates

ValuationValuation





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© SAP AG FS320 11-5

SAP AG 2004

The remuneration amounts can be paid as follows:

• Disburse the calculated amounts immediately andpossibly apply a liability scenario

• Disburse the calculated amounts in different layers(legal right to future commission).

Legal Right to Future Commission

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Legal Right to Future Commission

If rules for the legal right have not been maintained for this type of remuneration:

The calculated remuneration entitlements are due on the posting date

If a rule for the legal right has been maintained for the remuneration type:

The calculated remuneration entitlements are divided up into different payment sections (according to the legal right rule) with different due dates.

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© SAP AG FS320 11-7

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to describe the determination of the due dates

Unit Summary

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© SAP AG FS320 12-1

SAP AG 2004

Commission Case [ Commission document ]

The commission case

The commission document

Contents:

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Unit Objectives

Create and post a commission case

Track the processes in the commission case(log)

Create documents manually

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Course Overview

LiabilityLiability



Due datesDue dates

BonusBonus



StoryStory






ValuationValuation


Stor

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LiabilityLiability



DueDue datesdates

ValuationValuation





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© SAP AG FS320 12-5

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The commission case determines the following using the commission data that has been transferred:

Which participants (direct and indirect) are to get one or more remuneration paymentsWhich remuneration amounts are to be paidHow long these remuneration amounts are applicable for liabilityWhen these remuneration amounts are due

These remuneration amounts, due dates and the recipients must be specified for the commission document.

Liability is not taken into account for commission documents that have been created directly.

Commission Case vs. Commission Document

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Commission Case

Commission Case

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© SAP AG FS320 12-7

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Process

Disbursement system

Comncontract


parked

Settle

Post Comnaccount

Totalsaccount

Totalsaccount

DetermineValuate

Remunerate

Accept

Commission CaseCommission activitiesParticipants

Object information

Close

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© SAP AG FS320 12-8

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Commission Case

Structured inbound interface with information on participants, activities and objects relevant for commission (can be enhanced using the generating program)

Customer field enhancements to the inbound interface, with no modification necessary (can be enhanced using the generating program)

Possibility to include the SAP condition technique for valuation and remuneration (can be enhanced using rules)

Controlled process run (can be enhanced using exits)

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© SAP AG FS320 12-9

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Commission Case Model (1)

Business objectversion (n)

Commission case

Business objectversion (n+1)

Business transaction

BusinessObjTypeBusinessObjIdentificationBusinessObjVersionBusTransTypeBusTransIdentificationBusTransVersion

Reporting of new business object status or any changes possible

Type: Insurance contractLIFE-policy <6000>Version 1

createCommission Case No. <1>Version 1

Examples of business object type, business transaction and resulting commission cases: Insurance policy - transactions signing, change and monthly-/yearly support In-force support - transaction cancellation quota view for bonuses Claims quota for in-force with support Employees who receive support - transaction Production total view within a certain period for overriding commission

Consultations, service activities, and so on.

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© SAP AG FS320 12-10

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Commission case

Commission Case Model (2)

ComnCase(header)

ComnTriggering(sub)object

Participation

Participant ComnDoc

Activity

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© SAP AG FS320 12-11

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Recording Commission Cases (1)

The interface for commission case entry is generated in the generator. There are various options. You accept the interface delivered by SAP, without changes. You use the generator to control how your interface should look.

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© SAP AG FS320 12-12

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Execute and save ComnCase

Execute ComnCaseWITHOUT saving (simulation)

Save ComnCase as a recording variant

ComnCase acceptance test WITHOUT saving

Read ComnCase from variants

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© SAP AG FS320 12-13

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Read parts of data on comn case from old cases

Set future comn cases for the same subobject to pending

Processing target(acceptance, parking, release...)

Flag determined due dates immediately as cleared

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© SAP AG FS320 12-14

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Effective access date in master data and Customizing

Technical access date in master data and Customizing

Assignment date in ledgerand due date basis date

Not currently used for process control (for information purposes only - use in accordance with SAP)

Selection date for viewing early cancellations

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© SAP AG FS320 12-15

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Graphical view of relationships between participants

Recording of participant relationships and shares(here we have 2 direct participants at manager level)

Selection of entitlement category (entitlement group)

Alternative, supplementary and additional remuneration

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© SAP AG FS320 12-16

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© SAP AG FS320 12-17

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Graphical view of business object subobjects

All objects in this category including THEIR attributes

Subobject category currently being processed

Umbündelungs-informationen

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© SAP AG FS320 12-18

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View of comn document and log, as for directdocument recording

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© SAP AG FS320 12-19

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Activity 1

Activity 2

Commission case

Commission Case & Document

Remuneration 1

Remuneration 2

Commission doc.

Primary entry• Describes external business

transaction• Commission process

administration

Commission case movement• Valuation• Remuneration/ liability• Due date

Subsequent movement• Closure (flat rates/guarantee)• Settlement

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buchen

Provisionsfall aus Vorsystemen

Schwebe/Vorer-

fassung

Provisions-konto

Summen-konto

Summen-konto

ProvisionsfallProvisionsaktivitäten

ObjektinformationenBeteiligte

Provisions-vertrag

Vertriebs-organisation

annehmen

verrechnenvergütenbewertenermitteln

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… calculation process ...Participant determination

ValuationDistribution

Remuneration/ liability

Due date determination

Create/Simulate Version of a Comn Case

Commission case (DB)Interface

Comn doc**) (DB)

DB*) DB*)

Check

DB case ⊆ comn case (meta) ⇒ comn doc (meta) ⊇ DB doc… step-by-step derivation and transfer ...

Log

*) does not apply to simulations**) if comn case is not rejected

Dialogue direct input/iDoc

Remuneration clearing

DB = Object as it is contained in the database in terms of content. Meta = Object as it is derived and converted in processing. The meta level contains the DB level.

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Creating/Simulating Commission Cases

Processing log:• Warnings, errors and

detailed information• User parameters control the

level of detail in the display

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© SAP AG FS320 12-23

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Commission document

Commission document

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© SAP AG FS320 12-24

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Business Scenario

The head of sales at a district branch of Insurance Inc. wishes to give a field-force employee special, one-time remuneration.

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Overview

The commission document is the central object in thecommission account.

Documents map processes that lead to changes in the commissionaccount. There are remunerating processes and settling processes.

Normally a document is created automatically in the commissionsystem when a new commission case is accepted.

However, documents that are not dependent on commission casescan also be created manually.

Remunerating Processes (commission determination, periodic closing) form the entitlement to remuneration, where the settling processes (disbursement), clear the items with settlement.

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Process

Disbursement system

Comncontract


parked

Settle

Post Comnaccount

Totalsaccount

Totalsaccount

DetermineValuate

Remunerate

Accept

Commission CaseCommission activitiesParticipants

Object information

Close

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Creating Documents in the Commission System

Commissionaccount

ComnDocCommission case

Manualdocument posting

Closureguarantees

Disbursement

Closureflat-rates

Commission case entered

Commission case documents with business object and activity-based remunerations

Remuneration details via special remunerations

Direct document entry

Further document types for special transactions

Create periodic processing runs

Guarantee and flat rate documents

or

Settlement documents

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Types of Direct Document Entry

Ways of Direct Document Creation

Remuneration posting

Remuneration and due date posting

Reposting remuneration and due dates (zero balance)

Reposting due dates (zero balance)

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Functions of Direct Document Creation (1)

General functionsRemuneration items create due date items in accordance with the contract

System caters for alternative distribution of due dates

Results are given in the contract currencyIf another currency is given, conversion takes place

If no other currency is given, the application currency is used

Any additional value in the application currency is displayed

Any remuneration detail lines will overwrite the remuneration lines. If there are no detail lines, they will be constructed such that the remuneration lines can be built up again

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© SAP AG FS320 12-30

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Functions of Direct Document Creation (2)

General functionsRecording previously settled remuneration

Clearing items are set for each due date

Clearing items are not included in balance analysis (see below).

Qualifying authorizations can be defined for each document type

Quantifying authorizations can be defined for each field

Update of all defined totals tables

All functions accessible through EDT

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© SAP AG FS320 12-31

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Direct Document Creation (1)

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© SAP AG FS320 12-32

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First choose the document type

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© SAP AG FS320 12-33

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Partial areas and their fields are

reduced accordingly

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© SAP AG FS320 12-34

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Create and post a commission case

Track the processes in the commission case (log)

Create documents manually

Unit Summary

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© SAP AG FS320 13-1

SAP AG 2004

Bonus Payments


Contents:

Bonus Payments

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© SAP AG FS320 13-2

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Bonus Payments

Explain the processing of bonus payments

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© SAP AG FS320 13-3

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Course Overview

LiabilityLiability



Due datesDue dates

BonusBonus



StoryStory






ValuationValuation


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Scenario 3 [Periodic Tasks – Commission Clerk]

BonusBonus

FlatFlat RatesRates

Perio

dic

Task

s

ClosingClosing



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© SAP AG FS320 13-5

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Individual agreements:

You need to define the entitlement to a bonus payment in the commission contract.

Contractual Prerequisite -> Bonus Payment

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REMUNERATION CATEGORY

FREQUENCY

ACTIVITY

VALUATION

LIABILITYFS-CS


Time frame of the activity

Agreement for additional commission cases

Performance = activity

Bonus - commission case

Integration of Bonuses in the Commission System

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© SAP AG FS320 13-8

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31.12.

Agreementadditional

commission cases

Period(s)

commission case trigger

rule

Creation ofcommission case

data by FS-CS

determines the reward

ICM triggers the commission case - Business object- Business case- Subobjects- Participant- Activities etc.

Key date

Main Process: Additional Commission Case (Bonus)

Subobjects carry information on the success of the representative Examples:

-Production total for life insurance -Monthly premium for health insurance -Earned commission -Cancellation rate -Loss ratio

The data is collected by means of a logical service.

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© SAP AG FS320 13-9

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Additional Commission Case - Trigger (1)

Commission case trigger


Commission case cause

Period rule

Processing target

T1

12

9

01.03.2001Commission trigger from

Commission trigger to 31.12.2002

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Totalstable

Totalstable



Total data for bonus run

Customer-specific table

Data

Commissionaccount External data

Data

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ActivityParticipation Object data



Commission case (bonus)

Total data for bonus run

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© SAP AG FS320 13-12

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Explain the processing of bonus payments

Unit Summary

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© SAP AG FS320 14-1

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Flat rates and guarantee agreements

Account assignment types for flat rates and guarantees

Period rules

Limits

Excess- and short cover for guarantees

Creditable remuneration types for guarantees

Contents:

Flat Rates and Guarantees

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© SAP AG FS320 14-2

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Describe flat-rate remuneration types and guarantees


Unit Objectives

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© SAP AG FS320 14-3

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Course Overview

LiabilityLiability



Due datesDue dates

BonusBonus



StoryStory






ValuationValuation


Stor

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r Dat

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© SAP AG FS320 14-4

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BonusBonus

FlatFlat RatesRates

Perio

dic

Task

s

ClosingClosing



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© SAP AG FS320 14-5

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Insurance Inc. provides its agents with guarantees and on-going flat rates.

Business Scenario

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SAP AG 2004

Overview

When a commission contract partner first assumes an agent's activities, the earnings are usually not enough to live on for the first few months, or even years. For this reason, he or she is granted either a fixed subsidy or a guarantee.

Unlike guarantees, flat rates are not usually offset against commission. Flat rates are also agreed for a certain period of time, but are treated like subsidies.

Being granted a guarantee means that the commission contract partner receives a guaranteed minimum amount (taking into account the commission).

Typical guarantees include acquisition commissions for each division (such as life, health and non-life insurance)

Typical flat-rates include office or transport costs, or PC rental flat-rates.

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© SAP AG FS320 14-7

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Post

Settle

Accept

OffsetRemunerate

Valuate

Process

Disbursement system

commissioncontract


parked

Commissionaccount

Totalsaccount

Totalsaccount


Object information

Businesspartner

Determine

Close

Participants

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© SAP AG FS320 14-8

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The entitlement to flat rate payments must be defined in the commission contract.

Examples:

• Office expense

allowance

• Flat rates fo

r IT

equipment

Contractual Prerequisite -> Payment of Flat Rates

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© SAP AG FS320 14-9

SAP AG 2004


The entitlement to flat rate payments must be defined in the commission contract.

Contractual PrerequisiteFor Possible Guarantee Payments

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© SAP AG FS320 14-10

SAP AG 2004

Guaranteeremuneration type 1

Guaranteeremuneration type n Remuneration type n

Remuneration type 1

Remuneration type 3

Remuneration type 2

In the standard guarantee agreement, performance-related remuneration types, for which a guarantee has been granted, are assigned to guarantee remuneration types

Remuneration Types: Guarantee – Performance-Related

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© SAP AG FS320 14-11

SAP AG 2004

Sub-threshold earnings

Term

Remuneration

Period 1 Period 2 Period 3

Guarantee amount

Excess earnings

Credited sub-threshold earnings

Excess/Sub-Threshold Earnings

If the total of the chargeable remunerations is less than the specified guarantee amount, then the paid guarantee is displayed as being sub-threshold earnings.

If the total of the chargeable remunerations is higher than the guarantee amount, then the excess amount is displayed as excess earnings.

In addition, agreements can be made on possible recalls. For example, to offset excess earnings against sub-threshold earnings from previous settlement periods up to the beginning of the current settlement period.

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© SAP AG FS320 14-12

SAP AG 2004

Describe flat-rate remuneration types and guarantees


Unit Summary

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© SAP AG FS320 15-1

SAP AG 2004

Closing run

Settlement agreements

Settlement run

Contents:

Settlement and Disbursement

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© SAP AG FS320 15-2

SAP AG 2004

Close periods and settle commission accounts


Unit Objectives

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© SAP AG FS320 15-3

SAP AG 2004

Course Overview

LiabilityLiability



Due datesDue dates

BonusBonus



StoryStory






ValuationValuation


Stor

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r Dat

aPr

epar

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nC

omm

issi

on

Cas

e

Com

mis

sion

Cas

ePe

riodi

c Ta

sks

Info

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© SAP AG FS320 15-4

SAP AG 2004


BonusBonus

FlatFlat RatesRates

Perio

dic

Task

s

ClosingClosing



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© SAP AG FS320 15-5

SAP AG 2004

Business Scenario

The period that has just finished must be closed, the commission account settled and relevant data passed on to the disbursement system.

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© SAP AG FS320 15-6

SAP AG 2004

Process

Disbursement system

Commissioncontract

Salesorganization

Pending/parked

Settle

Post Commissionaccount

Totalsaccount

Totalsaccount

DetermineValuate

Remunerate

Accept

Commission caseCommission activitiesParticipants

Object information

Close

During this process, settlement is triggered at the end of the period. Flat-rates and guarantees are calculated and credited to the agent's account.

The agent's account is settled to the disbursement system.

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© SAP AG FS320 15-7

SAP AG 2004

Closing operations Settlement

Due dates

FS-CD

Settlementdocument

disbursement

?

Calculation offlat-rates

Calculation ofguarantee

Determination of cancellation reserve

for eachcommission contract

Clearing postingto

disbursement system

Closing documentguarantee

Closing documentflat-rates

Commission case

ValuationRemuneration...

Commission case

Detailed Process

The documents created during settlement are given the stored due dates and then saved.

During the settlement run, only the due documents for flat-rates, guarantees and performance-related remunerations are grouped into settlement types. The cancellation reserve and the disbursement document are created.

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© SAP AG FS320 15-8

SAP AG 2004

Closing Run

Closes the period

Performed separately for flat-rates and guarantees

Credits remuneration to commission account

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© SAP AG FS320 15-9

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Closing Tasks: Closing Run (II)

Guarantees:

The closing run calculates and posts guarantees in FS-CS.

Commission contracts and remuneration types can be closed separately.

If a guarantee agreement has excess earnings, it is possible tocalculate the recall amount.

Choose:Tools -> Periodic Tasks -> Closing

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© SAP AG FS320 15-10

SAP AG 2004

Closing Tasks: Closing Run (I)

Flat-rate remuneration:

The closing run calculates and posts flat rates in FS-CS.

Commission contracts and remuneration types can be closed separately.

Choose:Tools -> Periodic Tasks -> Closing

In closing tasks, the system calculates the guarantees and flat rates due on the key date.

The calculations refer to the reference period for the standard remuneration agreement, and run on the specified key date.

When executing the test run, the counter is reset for settlement runs.

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© SAP AG FS320 15-11

SAP AG 2004

Closing Tasks: Closing Run (III)

Calling up the detailed log for the closing run:

Transaction: CACSLOGDIS

Or choose: Info-System Log Files Closing Flat Rate and Guarantee

Selection criterion:"Closing (flat rates, guarantees)"

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© SAP AG FS320 15-12

SAP AG 2004

Settlement

FS-CS has three different types of settlement:

Settlement with period-end closing

A period is included in a final settlement run, and so is flagged as being closed.

Temporary settlement

All outstanding due dates in a period are selected. The period is, however, flagged as not being closed.

Subperiodic settlement

The key date is before the end of the analyzed period.Therefore, only the last period can be regarded as being subperiodic when more than one period is settled.

Settlement is periodic processing, which is executed in defined phases, such as monthly.

For various reasons, it may be desirable to execute settlement on a subperiodic basis, such as:

Interim payments for longer settlement periods

Various period views (twice per month, but not every 14 days)

For a thirteenth settlement period when changing the fiscal year (twelfth settlement is subperiodic, the thirteenth settlement is final).

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© SAP AG FS320 15-13

SAP AG 2004

Settlement Type (I)

Definition of "Settlement Type":A settlement type classifies settlement account assignmentsand the payment system.

Settlement types are assigned to remuneration types.

The remuneration types that have been assigned contain account assignment types and account assignment information (payables, cost center and cost element for example).

Attributes for account assignment are defined in the generating program.

Summarization of certain remuneration types is executed to be able to apply various cancellation reserve rules to these groups, for example.

Information or rules are also defined for these settlement types (disbursement system, description of cancellation reserve …).

The disbursement sytem (such as SAP FS-CD) can be defined in Customizing.

The disbursement account can be defined in the contract.

Categories of settlement types:

Settlement without reserve (disbursement)

Settlement with reserve (cancellation reserve)

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© SAP AG FS320 15-14

SAP AG 2004

Settlement Type (II)

Settlement types include:

Settlement without reserves

All open, due date documents are selected and transferred to the payment system

Settlement with reserves

All the outstanding documents are totaled.

Documents that have already been calculated (from past periods) are also taken into account for the cancellation reserve calculation.

The system checks how much cancellation reserve needs to be calculated and how much has already been posted for the period.

Settlement with Reserve

All open documents are totalled for the open periods (if none are available, no calculation takes place – no recalculation). To calculate the reserve, documents that have already been calculated are analyzed for the currently processed periods (from previous runs).

The system checks the totals for the documents already calculated and the open items. The system checks how much reserve is to be calculated, and how much reserve is already posted for the period.

The entire reserve, meaning that which has been calculated up to that point, is analyzed (from previous and later periods).

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© SAP AG FS320 15-15

SAP AG 2004

Settlement Agreement

Definition of "settlement agreement":The settlement agreement provides the settlement information (rules) that are required for the summarization of the commission payments.

The settlement agreement also defines whether cancellation reserves are to be retained and, if so, to what extent

As a percentage of the disbursement amount (determines the extent of cancellation reserve formation)

As a threshold value of the disbursement amount, above which, a part is transferred to the cancellation reserve

As a maximum amount of the cancellation reserve

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© SAP AG FS320 15-16

SAP AG 2004

Settlement Run (I)

During the settlement run, the disbursement amount for the commission recipient is calculated and transferred to the disbursement system.

The settlement run...is normally executed periodically

can be executed selectively for commission contract accounts and settlement types

disburses all remunerations (or demands back remunerations), which are due on the settlement key date.

Either the run date or any other date can be selected as the key date.

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© SAP AG FS320 15-17

SAP AG 2004

Settlement Run (II)

The period before the current one:

The “settle closed” indicator is used to mark the periods before the current one as closed.

The current period:

The “current period temporary” indicator is used to select the openitems, but the period is not markedas closed.

The “current period subperiodic” indicator is similar to the temporarysettlement, but the key date entered lies before the end of the analyzedperiod.

The reversal reserve is calculated in the disbursement. The amount intended for disbursement is forwarded to the disbursement system.

Disbursement can be executed individually for commission contracts and settlement types.

When executing a test run, the settlement runs counter is set high.

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© SAP AG FS320 15-18

SAP AG 2004

Settlement Lock (I)

Disbursement only after release

Settlement reports a document to the payment system when it is due.

A “settlement lock indicator” can be used to prevent this.

The due date is only settled when another event occurs (for example, the customer has paid a premium).

With actual commission calculation, the due date against the agent is only settled when the customer has paid. The payment from the customer is reported to the commission system using an operational system (such as the Collections/Disbursements system). The commission system then initiates the disbursement.

The actual due date for the time at which the case is created is therefore initially open.

The settlement lock indicator “SETT_LOCK” ( waits for subsequent processes) can be found in the <ANW>_DOCSE (z.B. CACS00_DOCSE) table.

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© SAP AG FS320 15-19

SAP AG 2004

Settlement Lock (II)

Settlement lock indicator

Setting the settlement lock indicator

... Using the commission caseThe settlement lock is reported to FS-CS by an external system, using the commission case data.

... Using a ruleThe settlement lock can be included in the valuation and/or remuneration, and is supplied using an appropriate appropriate calculation rule(logical service).

If the settlement lock indicator is reported to IS-CS using the commission case, the settlement lock must be included using the construction (generator).

Example: The decision as to whether a settlement lock takes place depends on the “tariff - 8010“ subobject. The settlement lock must be included in the “tariff - 8010” object data, using the construction (generator).

The settlement lock indicator can be expanded using the generated function module <ANW>_RFC_SETT_LOCK_FLS (for example, CACS00_RFC_SETT_LOCK_FLS).

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© SAP AG FS320 15-20

SAP AG 2004


Close periods and calculate flat-rates and guarantees

Settle the commission account and send relevant data to disbursement system

Unit Summary

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© SAP AG FS320 16-2

SAP AG 2004

Describe possibility to handle the reporting requirements


Unit Objectives

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© SAP AG FS320 16-3

SAP AG 2004

Course Overview

LiabilityLiability



Due datesDue dates

BonusBonus



StoryStory






ValuationValuation


Stor

yM

aste

r Dat

aPr

epar

atio

nC

omm

issi

on

Cas

e

Com

mis

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Cas

ePe

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Info

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© SAP AG FS320 16-4

SAP AG 2004

Scenario 4 [Reporting]



Rep

ortin

g


......


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© SAP AG FS320 16-5

SAP AG 2004

Business Scenario

The period that has just been settled is to be evaluated at commission account level.

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© SAP AG FS320 16-7

SAP AG 2004

Post

Settle

Accept

OffsetRemunerate

Valuate

Process

Disbursement system

commissioncontract


parked

Commissionaccount

Totalsaccount

Totalsaccount


Object information

Businesspartner

Determine

Close

Participants

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© SAP AG FS320 16-8

SAP AG 2004

Commission Account Functions

The commission account provides a variable view of the commission documents.

Field enhancements can easily be carried out to the commission account, with no modification necessary.

Commission documents consist of:Valuation items

Remuneration items, including liability

Due date items.

You can also create documents manually for special transactions (for example, advance payments).

Unlike SAP Collections/Disbursements, the commission account is not an entity in itself.

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SAP AG 2004

Commissionaccount

Flat-rates

Guarantees

ComnContractRemuneration 1

Remuneration 2

ComnContractReserves

Settlement

ComnContract

ComnCase ComnDoc

Commission case Closure Settlement

Disbursementsystem

Comn Account: Entries, Closure and Settlement

Documents are created as a result of changes in the policy system and period closing /settlement. The contract is always referred to in these cases.

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Commissionaccount

Commission Account: Assignment

Disbursementledger/account

m

n

Agreement 1

Agreement 2

Commission contract

Commissioncontract partner

1n

11 1

Document headerDocument header

Document headerItem 1Item 2

..

Item nn

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© SAP AG FS320 16-11

SAP AG 2004

Valuation items

Remunerationitems

Due dateitems

Valuation totals

Remuneration totals

Due date totals

Commission contract

Pos

ting

mon

thRem

unera

tion t

ype

Drilldown report

ReportAccount

statement

Account: Display and Evaluation

You can use the menu path Comn account -> Line items/Totals -> Remuneration and liability/Due dates/Valuation to include six reports that access the relevant tables (for example, <application>_DOCRE) and evaluate them.

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© SAP AG FS320 16-12

SAP AG 2004

Research: Customer-Specific Totals Tables

In addition to the tables that are already available, the customer can create any number of totals table in the commission system.

Maintenance of these tables takes place in the generator:

Differentiation characteristics are in the key areaNumerical attributes to be summarized are in the data area

The generation process creates the appropriate update methods automatically.

It is possible to create a report for each totals table.

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© SAP AG FS320 16-18

SAP AG 2004

Valuation totals

Remuneration totals

Due date totals

Product

Pos

ting

mon

thReg

ion

Drilldown report

ReportStatistics

i.e.

Region

Agents

others

Statistic

You can use the menu path Comn account -> Line items/Totals -> Remuneration and liability/Due dates/Valuation to include six reports that access the relevant tables (for example, <application>_DOCRE) and evaluate them.

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© SAP AG FS320 16-20

SAP AG 2004

mySAP Insurance

mySAP Technology

Business Partner

Business Information Warehouse and Strategic Enterprise Management

Insurance Core Systems Business Support

Col

lec

tio n

sa n

d D

isbu

rse m

entsPolicy

ManagementP

rodu

ct

mySAPmySAP Insurance Insurance

General Ledger

Controlling

SRM

Human Resources

Claims Management

Commissions

Reinsurance

Financial Asset Management

LIFE

P&C

HEALTH

LIFE

P&C

HEALTH

...

CommissionsCustomerService

Claimshandling

Acquisitionand sales

MarketingManagment

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© SAP AG FS320 16-21

SAP AG 2004

SAP Business Content – What Is It?

CustCust..--specificspecific

We differentiate between the following categories in SAP Business Content: General General

Business ContentBusiness Content

IndustryIndustry--specificspecific

Info

Env

ironm

ent

InfoCubes, ODSInfoCubes, ODSExtractors, InfoSourcesExtractors, InfoSources

QueriesQueries

Info ObjectsInfo Objects

WorkbooksWorkbooksRolesRoles

Stan

dard

In

divi

dual

Stan

dard

In

divi

dual Preconfigured collection of

objects

Info environment structured according to business queries

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© SAP AG FS320 16-22

SAP AG 2004

SAP Business Content – Components

SAP BW

Infosources

Tech. Processes

Info Objects

Data Objects

Analyses

Delivery SystemsSemant., Tech. Properties

Extractors

Data Sources

ReportingReportsRolesWorkbooksWebCockpits

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© SAP AG FS320 16-23

SAP AG 2004

Describe Reporting Possibilities for FS-CS


Unit Summary

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© SAP AG FS320 17-1

Exercise MasterData_Commission_Contract_for_Agent

Table of Contents

Exercise MasterData Commission Contract for Agent...................................................1

System Access Information .....................................................................................................1

Step 1: Build up an organizationt ...................................................................................2

System Access Information

System Landscape

System Landscape, this Process is built in

SAP for Insurance

Solution Components used in this Process

mySAP R/3 Functionality

FS-CS Commissions Management

IS-INS Miscellaneous

Users

Predefined User (Role) Initial Password Component

FSxx init R/3

Start-Menu

Choose the following start-menu: SAP Easy Access Insurance Commission

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© SAP AG FS320 17-2

Step 1: Build up an organization Recently you created a Business Partner in FSCS. You also made this BP available in the CD system by going to the CD menu and creating it.

You’ll be creating some basic CD master data which we’ll use later. You will also be creating the commission contract for your business partner.

Procedure 1. You are now going to create a brand new organization.

2. Choose Human Resources Organizational Management Organizational Plan General Structures Create

Please note under the path (Commissions Master Data Organization Plan Structures: General) you could call the amendment modus. 3. Enter the following data:

Field Data

Object Type <o> (Organization Unit)

Abbreviation Your choice

(e.g. H.O & your group #)

Name Your choice

(e.g. Insurance & your group # or your name)

Evaluation Path CACS_GP

Valid from 01.01.2005

Valid from 31.12.9999

4. Choose (<Create>).

5. Place your coursor at the first Organization Level, which you have created under step 3.

6. Now choose at the menu edit create object

7. Choose <is line supervisor of> (Organizational Unit)

8. Now make the following entries:

Abbr. Name

Agency 1 Name of the Agency (e.g. Agency Walldorf)

Agency 2 Name of the Agency (e.g. Agency Mannheim)

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© SAP AG FS320 17-3

9. Now save your entries with the Save button (diskette icon).

10. Place your coursor at the first Agency, which you have created under step 8.


12. Choose <incorporates> (Positions) Remark: for AGENTS


Abbr. Name

Agent 1 Agent 1

Agent 2 Agent 2


15. Place your coursor at the first Agency, which you have created under step 8.


17. Choose <is managed by> (Positions) Remark: for Manager


Abbr. Name

Manager Manager of Agency ….


20. Place your coursor at the first Organization Unit, which you have created under step 3.


22. Choose <has administrator> (Positions) Remark: for Commission Clerks


Abbr. Name

Clerk Clerk


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© SAP AG FS320 18-1

Exercise MasterData BP for CLERK Table of Contents

Exercise MasterData BP for Agent .............................................................................................1 System Access Information ..................................................................................................................1

Step 1: Creating a business partner in the system in the role <commission contract partner> .2

Step 2: Assign the commission clerk to the organization ...........................................................3

System Access Information System Landscape


SAP for Insurance





Users


FSxx (xx = your assigned group #

“init” You’ll be asked to create a new password – use “FSxx”

R/3

Start-Menu

Choose the following start-menu: SAP-Menu Insurance Commission System Start Menu

Choose commission application <ZFSCS> [FSCS Training System]

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© SAP AG FS320 18-2

Step 1: Creating a business partner in the system in the role <commission contract partner> Procedure ...

1. To start, choose at the FSCS Menu Administration System Administration Clerk Create

2. Choose <Person> and press (<Enter>).

3. Enter the following data:

Field Data

Title <Mr.>

First Name <your first name>

Last Name <your last name>

Search Term1 <Clerk>

Search Term2 <Last name of your clerk>

Street <Neurottstr. >

House No. <2>

Postal Code <69190>

City <Walldorf>

Country <DE>

You currently do not need to enter any other data.

4. Choose folder <Control > (note the tabs, you’ll have to scroll right).


Field Data

BP Type <0003> (employee)

6. Choose folder <Identification >.

7 Enter the following data:

Field Data

USER <your USER ID> of your login to the training system

8. Now save your commission contract partner using the save button (diskette icon).

9. Make a note of the number of the business partner that you have just created. This number is visible at the bottom of the screen. No.: ___________________________

10. Choose the button.

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© SAP AG FS320 18-3

Step 2: Assign your commission clerk to your organization

Procedure

...

1. Choose at the Commissions Master Data Organizational Plan Structures: General

2. Enter the following data at the bank details:

Field Data

Object type <O>

Object ID Chose with the F4-Help the organization, which you have created or which you want to use.

Evaluation Path CACS_GP

E.Period from <today>

E.Period until 31.12.9999

3. Please confirm this message press the (<Enter>) button.

4. Place your coursor at the position <has administrator>

5. Now choose at the menu edit create relationship

6. Choose <holder> (Business Partner) .

7. Press the (<Enter>) button.

8. Enter the following data at the bank details:

Field Data

Business Partner The business partner number of your commission clerk

9. Mark the the entry which the system now displays.

10. Press the (<Enter>) button.

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© SAP AG FS320 19-1

Exercise MasterData BP for Agent Table of Contents

Exercise MasterData BP for Agent.................................................................................1


Step 1: Creating a business partner in the system in the role <commission contract partner>.................................................................................................................................................2

Step 2: Creating a business partner in the system in the role <Contract Partner> (for FSCD).................................................................................................................................................3



SAP for Insurance





Users


FSxx (xx = your assigned group #

“init” You’ll be asked to create a new password – use “FSxx”

R/3

Start-Menu


Choose commission application <ZFSCS> [FSCS Training System]

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© SAP AG FS320 19-2

Step 1: Creating a business partner in the system in the role <commission contract partner> Procedure 1. To start, choose at the FSCS Menu Master Data Commission Contract Partner Create

2. Choose <Person> and press (<Enter>).

3. Enter the following data: Field Data

Title <Mr.>

First Name <according to your choice>

Last Name <according to your choice>

Search Term1 <Agent>

Search Term2 <Last name of your agent>

Street <Neurottstr. >

House No. <2>

Postal Code <69190>

City <Walldorf>

Country <DE>

You currently do not need to enter any other data.

4. Choose folder <Control > (note the tabs, you’ll have to scroll right).


BP Type <0005> (full time agent)


7. The system informs you that the business partner type has been changed. Please confirm this message press the (<Enter>) button.

8. Make a note of the number of the business partner that you have just created. This number is visible at the bottom of the screen. No.: ___________________________

9. Choose the button.

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© SAP AG FS320 19-3

Step 2: Creating a business partner in the system in the role <Contract Partner>

Procedure

1. Choose at the SAP Easy Access Menu Insurance Collection/Disbursement Master Data Change

2. Your recently entered Business Partner may already have defaulted. Note the role.

3. he address data and other information should have defaulted in too.

4. If you can’t find your Business Partner contact your instructor

5. If you found your Business Partner continue to next steps

6. Choose folder <payment transactions>.

7. Enter the following data at the bank details: Field Data

ID <0001>

Ctry <DE>

Bank Key <10020030>

Bank account <4711>


9. The system informs you that the business partner type has been changed. Please confirm this message press the (<Enter>) button.

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© SAP AG FS320 20-1

Exercise MasterData_Commission_Contract_for_Agent Table of Contents

Exercise MasterData Commission Contract for Agent...................................................1


Step 1: Creating a CD Contract Account........................................................................2

Step 2: Creating a CD Insurance Object.........................................................................3

Step 3: Creating a commission contract for a new agent...............................................4



SAP for Insurance





Users


FSxx init R/3

Start-Menu

Choose the following start-menu: SAP Easy Access Insurance Collection/Disbursement

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© SAP AG FS320 20-2

Step 1: Creating a CD Contract Account Recently you created a Business Partner in FSCS. You also made this BP available in the CD system by going to the CD menu and creating it.

You’ll be creating some basic CD master data which we’ll use later. You will also be creating the commission contract for your business partner.

Procedure 1. You are now going to create a FSCD contract account for the new agent.

2. Choose Master Data Contract Account Create.


Business Partner <?> (Your business partner number)

Cont. Acct. Cat. <07> (Commission Account)

Valid from <today>

REF.ACCOUNT

Field Data

Contract Acct. <300146288>

Business Partner <1121>

4. Choose (<Enter>).The system then displays the General Data entry screen.

5. You have just copied a previously created contract account’s (7000200) attributes.

6. Now save your contract account with the Save button (diskette icon).

7. Make a note of the contact account number, which is displayed at the bottom of the screen. No.: ___________________________

8. Choose (<Enter>) to get to return to the Work Center for Commission Administrator.

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© SAP AG FS320 20-3

Step 2: Creating a CD Insurance Object 1. You are now going to create a FSCD insurance object for the new agent.

2. Choose Master Data Insurance Object Create

3. Enter the following data on the initial screen: Field Data

Insurance Object <IO-…> (Number of your business partner)

Valid from <today>

Object Category <30> (Commission Contract>

Partner <?> (Number of your business partner)

4. Choose (<Enter>) to get to the entry screen.

5. After pressing enter you should see the partner information display in the box to the right.


Description <Insurance Object for XX> (XX = No. of your business partner)

7. Enter the following data on the Coll./Disb. Tab page: Field Data

Contract acct. <yy> (yy data from step "creating a contract account")

Parameters for commission contract are active

<X>

8. Choose the Save button (diskette icon) to save your entries.

9. Choose (<Enter>) to get to return to the SAP Easy Access Menu.

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© SAP AG FS320 20-4

Step 3: Creating a commission contract for a new agent In the previous exercises you’ve created the following:

FSCS

o Business Partner

FSCD

o Business Partner

o Contract Account

o Insurance Object

You have created the basic master data needed for FSCS to settle to FSCD.

You’ll now focus on creating the contract in FSCS.

Procedure 1. Starting from the SAP Easy Access Menue choose now Insurance -> Commission System

Start Menu.

2. Choose Master Data Contract Create


Contract Number Leave blank

Number Assignment <01>

Comm. Contract Partner <your BP no. – see the above scenario section>

Effective From <today>

Effective until <31.12.9999>

Std. Contract No. <101> (agent contract)

4. Choose (<Enter>).

5. The system displays the General Information tab page. An information message appears saying “No link between commission contract ### and PD Org. This means that no assignment has been made to the organizational structure.

6. Press the <StfAssignment > button the to link the commission contract to the organization channel


Staff Assignt s

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© SAP AG FS320 20-5

Staff Assgt Choose a position of your organization

8. Choose (<Enter>) to confirm your entries.

9. Now choose the Performance-Rel.Rem. tab page.


Std. Agreement No. <1001>

Remark: Do not choose (<Enter>) as this takes you automatically to the next tab page,

meaning that you have to come back.

11. Select the radio button for standard agreement no. 1001.The system now displays all the condition tables that are important for standard agreement 1001.

12. Now choose the Flat-Rate Remuneration tab page.


Flat Remn. Rule No. <1>

Flat Rate From <today>

Flat Rate Until <two years later>

Amount <200>

Remuneration <PAU> (office costs)

14. Now choose the Settlement/Disbursement tab page.

15. If you want to settle SAP CD enter the following data: Field Data

Ind. Statement Rule <1>

Set Type <EXCD>

Payee Acc. Paym. Sys. <IO No.> Insurance Object No. see your above exercise (IO-

BP#)

16. Now choose the Guarantee tab page.


Guarantee Rule No. <1>

Guarantee Begin <today>

Guarantee End <two years later>

Guarantee Amount <3000>

Remuneration <GAP> (Guarantee for personal insurance)

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© SAP AG FS320 20-6

18. Now press the button to Save Commission Contract Actively

19. Save the contract with the Save button (diskette icon).

20. Make a note of the contact number, which will be displayed at the bottom of the screen. No.: ___________________________

21. Choose the <Back> button...

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© SAP AG FS320 21-1

Exercise Transaction Data Commissionable Event Table of Contents

Exercise Transaction Data Commissionable Event ........................................................1


Step: A life insurance contract is brokered/sold .............................................................2



SAP for Insurance





Users


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Start-Menu


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© SAP AG FS320 21-2

Step 1: A life insurance contract is brokered/sold The agent, agent contract and agent contract functions (settlement to CD, flat rate, guarantee, and product percentage) have been created and defined. You have also specified payments to be “settled” to FSCD (the settlement agreement on the contract).

In this exercise, you will simulate data coming from the Business Package into the commission system. The commission engine will calculate the Agent commission based on the newly created product (60/60) percentages.

Procedure ...

1. Choose Case Create


Object Type <1> (Insurance Contract)

Object Trigger <1> (Create)


4. The system then displays the Header tab page.

5. Choose (<Variant> ) and press (<FIND>)

6. Override the <User Name> with <ZFSCS>.


8. and select the variant <New Business>.



Processing Target <9>

Business Obj. ID REPLACE “Place Policy # here” with a <policy number of your choice> Make a note of this policy number: __________.

11. Choose the participation folder [Investment] and REPLACE Contract “2” with the contract no. you created in the commission contract exercise [see step before].

12. You can now simulate the calculation by choosing the simulation button (slide rule icon).

13. Now you can display the calculated values on the Document tab page. The detailed processing steps are on the Log tab page.

14. If the simulation ran successfully go to the next step. If not, notify the instructor. (You know the simulation ran successfully it the Log displays green lights and the Document tab displays amounts for your contract)

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© SAP AG FS320 21-3

15. Choose the Save button . Make not of the commission case number, which will be displayed at the bottom of the screen.

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© SAP AG FS320 22-1

Exercise Transaction Data Flat Rates and Guarantees

Exercise Transaction Data Flat Rates and Guarantees ...................................................1


Step 1: Calculating flat rates...........................................................................................2

Step 2: Calculating guarantee payments.........................................................................2

System Access Information System Landscape System Landscape, this Process is built in

SAP for Insurance





Users Predefined User (Role) Initial Password Component

FSxx init R/3

Start-Menu


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© SAP AG FS320 22-2

Step 1: Calculating flat rates At the end of each month, any due payments from contractually agreed flat-rates are determined for all agents. There might be, for example, IT flat-rates for office cost allowances.

Procedure 1. Choose Administraton Periodic Processing Closing Flat Rates, Guarantees


Field Data

Contract Number <contract no. of your agent> (From the previous exercise)

Remuneration Type <PAU> (office costs subsidy)

Key Date <month’s end>

Mode: Test Run <X>

3. Choose the Execute button (F8).

4. Does the amount you earlier defined for Flat rate look familiar? If not go back to the Commission Management menu and view your Agent’s contract and Flat Rate Agreement. If the amount looks familiar continue to the next step.

5. If there are no errors, remove the flag from the Test Run field.


7. Choose Exit (yellow arrow icon) to go to the entry screen for the closing run.

8. Choose (<Enter>) to get back to the Commission Management menu.

Step 2: Calculating guarantee payments

Procedure 1. Choose Administraton Periodic Processing Closing Flat Rates, Guarantees


Field Data

Contract Number <contract no. of your agent> (From exercise no. 2)

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© SAP AG FS320 22-3

Remuneration Type <GAP> (Guarantee)

Key Date <month’s end>

Mode: Test Run <X>




6. Choose Exit (yellow arrow icon) to go to the entry screen for the closing run.


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© SAP AG FS320 23-1

Exercise Transaction Data Settlement Run

Table of Contents

Exercise Transaction Data Settlement Run ....................................................................1


Step 1: Settlement Run to FS-CD...................................................................................2

Step 2: Check FS-CD account balance ...........................................................................3

System Access Information

System Landscape


SAP for Insurance





Users


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Start-Menu


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© SAP AG FS320 23-2

Step 1: Settlement Run to FS-CD At the end of each period the amounts due will be transferred to the disbursement system FS-CD.

Prior to this exercise you may want to review the Agent’s balance in FS-CD (see Step 2) before the settlement occurs. You should receive the message “No items selected” if there is a zero balance.

Procedure 1. Choose Administration Periodical Processing Settlement 2. Choose FSCS Periodical Tasks Settlement run


Field Data

Contract Number <contract no. of your agent> (From exercise no. 2)

Settlement Type <1CD>

Key Date <today + 1day>

Mode: Test Run <X>




7. Choose Exit (yellow arrow icon) to go to the entry screen for the settlement run.


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© SAP AG FS320 23-3

Step 2: Check FS-CD account balance

Procedure

1. Choose Exit (yellow arrow icon) to get back to the SAP Easy Access menu.

2. Choose Insurance Colletion/Disbursement Account Account Balance


Field Data

Business Partner <BP No. of your agent>

Contract account <contract account no.> see exercise 2 step 1.

List Type <all open and cleared items>

4. Choose (<Enter>).

5. You could choose four times to get more and more to the details of the account balance report.

6. Choose twice Exit (yellow arrow icon) to get back to the SAP Easy Access menu.