SAP Credit Card process and set up.08/25/2015 Prepared by : Vivek Patel .......2Assign Payment card Plan Type to sales document types ...................................................................................................................................................................................................................................................................................2 Integration ......7 Credit Card Settlement .........4 Creating Sales Order ........................................... 4 1................................................................... 12 3..........................................................................Contents 1.... Process Flow..................... 8 3................ 4 1........... 9 3............................................................................................................................................................... 8 3..............................................................6 Payment Card interface to clearing house.............................................................................................................. 9 3...........1 Terminology associated with credit card processing.. 11 3....................................................................................................................................................................................................5 Authorization ............ 8 3....................... Card type....... 6 3......1 Maintain Card Type.................................... 5 2.................3 Payment Card in Master Data...................................................................................................................................13 .. SAP Credit Card Process................................................................................... usage configuration and processing................................................................................................................................... b) Merchant Bank . We use the SAP Net Weaver's PI and J2EE engine which provides the required communication medium. .It's the number of days an authorization is valid within which the complete orderdelivery-billing-accounting and settlement process should be completed. Payment Card process is also referred as credit card process ing SAP . g) Settlement . The company which is implementing credit card process.Provides the authorization and settlement services.Supplier's Bank i. credit cards. SAP Credit Card Process Payment card processing function supports payments made using payment cards.1 Terminology associated with credit card processing Before we get started with the credit card process we need to get familiarized with some of the important terminologies.It's the ID given by the merchant bank to the supplier to which the payments and collections are affected. e) Authorization Window .e.The process of collecting the fund blocked on the credit card of customer during authorization when a purchase was made. b) 3rd Party Service Provider . f) Authorization Validity .The process of checking whether the credit card is valid or not and enough fund is available to make a purchase. a new authorization is required to be made to complete the remaining transaction process. If the authorization validity expires. d) Clearing house .It's the number days that you want to consider the material as available and execute an authorization. Debit Card. 1. a) Merchant I D . To implement online credit card processing in SAP we need an interfacing with the 3rd party vendors. e) Authorization .1.It provides the interfacing between SAP and clearing house. for example. and process payment card data in accounting documents.2 Integration Credit card process is used for C2C Process.1. sales orders. Sales and Distribution (SD) Install the SD component to process payment card data in master records. It calls for integration of SD module with FI Module. Retail Install the Retail component to process payment card transactions from point of sales (POS) systems . and Billing Financial Accounting (FI) Install the FI component to carry out settlement and payment functions to complete your activities in Sales and Distribution. The credit card information is captured in the sales order along with other details. It takes the card holder information along with the material ordered.2. Chase Paymentech arranges clearing from Providers to House banks. At the PI server a web service part of the J2EE engine is invoked to establish a connection with the 3rd party service provider who gets the clearing house service for authorization. price and goes to the PI server. quantity. Chase Paymentech is one of the leading service provider. So after the all the required information on the sales order is filled. Process Flow Upon receiving a customer purchase order we start creating a sales order in SAP. . we click the save button which triggers the authorization function module. additional data about the purchase is submitted for settlement. We process the billing document and release it to Financial Accounting. If the authorization is no longer valid. For instance. if a procurement card is used. so the system checks to ensure that it is still valid. billing amount. and goods issue is posted. and authorization information into the accounting document.At a later time. the system tells us to reinitiate authorization in the sales order. the system copies the payment card information. . receivables are posted to a special cash clearing account for the clearing house. payment card data is copied from the sales order. The authorization may have expired in the meantime. as in the case of point of sale. The system uses the authorizations in the payment card plan to calculate billing amounts. When all the items are picked packed. We complete and save the delivery. In accounting. we create a billing document. The appropriate settlement process is then carried out according to the category of the card used. When we release the billing document. we create the delivery. Here. or uploaded directly into the billing document from an external system. 1 Maintain Card Type To allow different types of cards to be used we need to defined in SPRO – Sales and Distribution > Billing > Payment Cards > Maintain Card Types 3. Card type. usage configuration and processing 3.2 Assign Payment card Plan Type to sales document types IMG > Sales and Distribution > Billing > Payment Cards > Maintain Payment Card Plan Types .3. Payment card data may only be entered at the header level. The system automatically copies the card data into the sales order for the card or cards that we choose from this list. we simply call up a list of cards for the customer using the matchcode on the payment card number field. we can store card data in the payer master record.3 Payment Card in Master Data To quickly and efficiently process sales orders with payment cards.4 Creating Sales Order We create a sales order with a payment card just as we do a standard sales order. Sales Order can be created for – One Payment Card Multiple Payment card Choose Goto _ Header _ Payment cards to enter card data . the system will warn you to reauthorize. .3. The card authorization must cover the entire sales order value. If it does not. When we create a sales order. so we cannot enter card data for each item. 3. Enter Card Type and Card Number with No Dashes or Spaces 2.1. then Green Back Button. and Save Go to Payment Cards to Verify Authorization Status is Green . Enter the Customer Verification Value or CVV code in the CVV field 3. Enter Cardholder Name as Shown on Credit Card 4. Press ‘Enter’ to Validate. Some of the different features which can be allowed by customized – Preauthorize sales orders Automatically authorize sales orders Manually authorize sales orders Determine which colleagues are permitted to manually authorize sales orders (authorization profile V_VBAK_AAT) Run a report to carry out authorizations in batch We can carry out authorization in the sales order only. and either authorizes the transaction or turns it down.5 Authorization When a customer pays for goods and services using a payment card. Chase Paymentech is one of the leading service providers. A successful authorization is a guarantee of payment. The system relies on settings in Customizing for payment cards to determine how and when to carry out authorization. the card number. Partial authorization of a sales order value is not possible. A third party Authorization Software is one of the pre-requisite. Lets put the authorization validity period as 7days. The clearing house checks this information.3. We can maintain this in IMG > Sales and Distribution > Billing > Payment Cards > Authorization and Settlement > Specify Authorization Validity Periods If ship date is > 7 days after authorization – credit card reauthorization required . the relevant amount and the payer’s name and address are forwarded to the clearing house for authorization. The standard system includes the function module CCARD_AUTH_SIMULATION that you can use to test the authorization process before obtaining software from your clearing house. and merchant services. or writing your own. including clearing houses. or an external program (RFC). Authorization Functional Module SAP can provide solutions for transmitting card data to many major clearing houses and other financial institutions.3. Authorization data is provided by the R/3 calling function module SD_CCARD_AUTH_CALL_RFC with four tables: CCAUT . the system accesses the logical destination that you have specified in Customizing.Primary request information CCAUT_H . When you trigger the authorization function.Additional information for procurement cards at header level CCAUT_I . SAP also provides the testing function CCARD_SETTLEMENT_SIMULATION for Financial Accounting (FI). Choose Sales and Distribution > Billing > Payment cards > Authorization and settlement > Maintain clearing house > Set authorization/settlement control per account in Customizing to set the function module for authorization. SAP has designed the payment card interface with remote function call (RFC) to provide us functions to communicate with any of your partners.Response message .6 Payment Card interface to clearing house The payment card interface is a application software that acts as a bridge between SAP’s R/3 System and your financial institution’s software.Additional information for procurement cards at item level CCAUT_R . This is either an SAP internal system. banks. Contact your SAP consultant for more information. credit card companies. 3.7 Credit Card Settlement Paymetric website provides history/status of authorisations and settlements Chase/Paymentech website provides history/status of settlements and Charges . Posting and clearing of the credit card account can be done if desired. This transaction retrieves credit card settlement data to be sent to a credit card processor for fund settlement.Execute Payment Card Settlement Execute standard transaction FCC1 to execute payment card settlement. Check Items to Forward to Settlement Click Forward to Settlement . Settlement Accounting Entries CC Billing Cr Revenue (100) Dr Customer 100 Cr Customer (100) Dr Credit Card Receivables (10210XX) 100 Open A/R and Direct A/R Cr Customer (50) Dr Credit Card Receivables (10210XX) 50 Settlement Cr Credit Card Receivables (150) Dr Bank: Cr Card Deposits (1012028) 150 Manual Clearing Cr Bank: Cr Card Deposits (1012028) (10) Dr Bank Charges 10 . GL account Assignment for settlement IMG > Sales and Distribution > Billing > Payment Cards > Authorization and Settlement > Maintain Clearing House > Account Determination > Assign G/L Accounts .