2. SAP FINANCIAL CONTRACT ACCOUNTS
RECEIVABLES AND PAYABLES
ON-LINE TRAINING
CORPORATE TRAINING
ON-LINE TRAINING
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3. SAP FINANCE AND CONTRACT ACCOUNTING
ON-LINE TRAINING
course overview
Contract Accounts Receivable and Payable (FICA) portion of the product.
It contains financial transactions and processes inherent to a water utility.
FICA, a sub-ledger accounting system, interfaces with Financial
Accounting (FI) to properly record the transactions occurring at the
customer (Business partner) level. FICA supports the following financial
processes for the utility.
It is integrated with Billing and Invoicing module of ISU
Security Deposit Management refers to the processes involved with
collecting and tracking security deposits required from contract partners
who are a poor credit risk. These processes allow the utility to collect
security deposits from those customers who represent a risk to the utility,
and refund the deposit when it is determined that it is no longer required.
4. SAP FINANCE AND CONTRACT ACCOUNTING
ON-LINE TRAINING
Customer Financial Management
Contract Accounts Receivable and Payable (FICA) portion of the
product. It contains financial transactions and processes inherent to
a water utility. FICA, a sub-ledger accounting system, interfaces
with Financial Accounting (FI) to properly record the transactions
occurring at the customer (Business partner) level.
Payment Processing
Processing of Returns
Security Deposit Management
Refunds
Dunning
External Collection Agencies
Lien Processing
Calculation of Customer Credit Worthiness
Reconciliation and Closing
Miscellaneous Document Posting
Deferral and Installment Plans
Write-off
Reconciliation and Closing
5. SAP FINANCE AND CONTRACT ACCOUNTING
ON-LINE TRAINING
Business Partner
A natural person or legal entity, with which the Utility company has a legal
relationship
Contains central data such as business partner’s name, addresses, communication
numbers and bank details
The Business Partner in ISU will be replicated from CRM
There is one Business Master record for each Business Master, but it can have
different roles.
Contract Account
In FICA, postings are always assigned to a Contract Account
One Business Partner must have at least one Contract Account
Contains central data for posting and further processing of open items, such as
payment condition, payment method and dunning procedure
6. SAP FINANCE AND CONTRACT ACCOUNTING
ON-LINE TRAINING
Agreement between the Utility company and Business Partner
Created on ‘Move in’ of Business Partner into the property
Integrated Business Master Data with Technical Master Data
Contains control data for billing, budget billing
One Business Partner can have several Contract Accounts
One Contract Accounts can have several contracts allocated
7. SAP FINANCE AND CONTRACT ACCOUNTING
ON-LINE TRAINING
Payment Processing
The payment function provides the ability to process walk-in payments,
lock-box payments, batches of payments and direct debit transfers. The
payment methods supported include cash, check, money order, and direct
debit payments. Direct debit payments represent the contract accounts
that allow the utility to directly draft the amount of the utility invoice from a
customer selected bank account.
The payment function provides the utility the ability to process:
Payments at the cash desk
Batch payment processes
Lock-box payments
Direct debit process
8. SAP FINANCE AND CONTRACT ACCOUNTING
ON-LINE TRAINING
Processing of Returns
The return check function combines returned items into return lots which
are processed in a manner similar to payment lots. The lots will be created
manually based upon information received from the bank and data
gathered by the utility. When the return lot is posted:
1.The payment clearing is reversed.
2.Any charges related to returned items are automatically created.
3.Creditworthiness is updated to reflect the return transaction.
The returns transaction allows the utility to process returned items which
have been deposited as part of the incoming payment process. The return
function will:
Apply returned payments to the contract account
Pass returned fund charges to the contract account
Generate returned check notifications to the contract account
automatically
9. SAP FINANCE AND CONTRACT ACCOUNTING
ON-LINE TRAINING
Security Deposit Management
Security Deposit Management refers to the processes involved with
collecting and tracking security deposits required from contract partners
who are a poor credit risk. These processes allow the utility to collect
security deposits from those customers who represent a risk to the utility,
and refund the deposit when it is determined that it is no longer required.
Deposit Management will include the following processes
Security deposit request
Payment of security deposits
Manual refund of security deposits
Refund of security deposit with final invoice
Refund of security deposit for exhibiting good payment
10. SAP FINANCE AND CONTRACT ACCOUNTING
ON-LINE TRAINING
External Collection Agencies
Bf a customer does not pay his receivables, and all measures have been
taken to collect the receivables, many utility companies use collection
agencies to prevent losing the receivable.
The SAP system allows the utility to manage accounts submitted to a
collection agency and the exchange of information with those collection
agencies.
FI-CA allows items to be handed over to an external collection agency if
dunning is unsuccessful, and supports subsequent processes. This
involves the following functions:
Release items for delivery to a collection agency. Automatic release can
take place from dunning or charge-off processes. You can also release
items manually.
Determine additional items to be handed over (for example, hand over all
items for a contract, contract account, or business partner)