INTRODUCTION

First of all thank you very much for giving me this opportunity. So, I have a commerce edu
MBA – in Major marketing & finance – in Minor Energy. After that I got a placement in Ind
an end user in SAP ISU FICA in payment processing, Billing and Invoicing. Then ,I was supp
processing ,Billing and invoicing. Later on, I started working in SAP in house support team
SAP SUPPORT

I resolve several incidents and closing tickets at L2 level in a service now tool.
Mostly issues are related to data correction.And ,Whenever anything major change is req

So, most of the issues are related to dunning. Where customer ask their doubts why they
paid. I used to convince them and make them understand the Gap that their amount was
cleared, and they have to pay the left-out balance.
Example – Posting Lock

RECENT CONFIGURATION

Configuration
1. Contract Account Receivables & Payable
2. Business transactions.
3. Payments.
4.
Processing incoming & outgoing payments A.
Define default values for payment lot
B. Define bank clearing account
ave a commerce educational background. I did BBA in graduation and after that I went for
ot a placement in Indian oil Adani Gas pvt. Head office ,NOIDA . So, Initially I was working as
ing. Then ,I was supposed to give training to the collegues and new joinees for the payment
house support team at L2 level.

ow tool.
major change is required , it goes to L3 .System is quite stable; we get these sorts of incidents.

eir doubts why they are getting the BILL DUE messages for the amount which they had already
at their amount was cleared with the previous invoices. But their current invoice is partially
 t for
king as
yment

incidents.

d already
artially
The creditworthiness provides information on the business partner’s payment
pattern behavior ,history and influences the selection of activities for dunning.
T-codes – FPCR1( Display credit worthiness)
FPCR2 (Change credit worthiness)
 PAYMENT (CUSTOME
Configuration
1. Contract Account Receivables & Define default values for payment lot
Payable 2. Business
transactions.
3. Payments.
4. Processing incoming & outgoing
payments A.Define default values for
payment lot B. Define bank
clearing account

In this activity define a document type, a

clearing reason and up to three selection
types. These specifications are proposed
when entering payment lots
and used for posting the clearing
documents`

PAYMENT (SAP OR COM

Configuration A.Define payment method.

1. Contract Account Receivables &
Payable 2. Business
Transactions.
3. Payments.

4. Incoming/Outgoing payment creation

A.Define payment method.

B. Define
specifications for paying code.
C. Define accounts for payment program.
D. Maintain Bank selection.
 4. Incoming/Outgoing payment creation

A.Define payment method.

B. Define
specifications for paying code.
C. Define accounts for payment program.
D. Maintain Bank selection.

C. Define accounts for payment program.

FPY1

OPEN ITEMS - System wi

system.
REPAYMENTS - Any paym
destination
PAYMENT SPECIFICATION
customer.
 DUE DATE - System will p
defined.

↓↓↓↓
 PAYMENT (CUSTOMER INITIATED)

Define bank clearing account for payment lot

Bank clearing account - I

House bank - This a bank
Acc. Id - Acc. Id is assigne

Define bank clearing account for check lot

PAYMENT (SAP OR COMPANY INITIATED)

B. Define specifications for paying code.

t program. D. Maintain Bank Selection

OPEN ITEMS - System will pick up those items which are not yet cleared by the
system.
REPAYMENTS - Any payment should not be received then we send it back to
destination
PAYMENT SPECIFICATION - Will clear those items which has to autpaid by the
customer.
DUE DATE - System will pay those items as per the due date is
defined.
Bank clearing account - It is used for reconciliation purpose.
House bank - This a bank where companies account is opened.
Acc. Id - Acc. Id is assigned to house bank.
ain Bank Selection

↓↓↓↓
 RETURN
Configuration A.Configure Return Reasons.
1. Contract Account Receivables &
Payable 2. Business
transactions.
3. Returns.
A.Configure Return Reasons.
B. Assign Return reason to house Bank
C. Define bank clearing accounts for
return.

EXPLANATION
Return are posted in FICA via “Return Lot”.
Initially when receivables or payables get cleared.
But due to certain reasons such as funds
insufficient , accounts closed, incorrect accounts or
signature . In that case Return lot is made
The returns data provided by a bank gets
converted into SAP Readable format accepted by
the program that is SAP.DAT.TXT format for
transferring returns data and stored as a file on an B. Assign Return reason to house Bank
application server.
 With this return lot get created automatically in
FPB5 . And whatever the receivables that was
already cleared , it gets open up again.

C. Define bank clearing accounts for return.

 RETURN
Return Activities

→→→→→→

Delete incomg. Paymt mtd. -

Direct debit will get removed from Deferral days - In case of
the customers account in case of connectivity failure or any other
insufficient fund. miscellaneous reason we can
mention days for deferral.

ts for return.
 Return Charges

→→→→→→→→→→→→→→→→→→→→→→→→→→→→

days - In case of
y failure or any other
eous reason we can
days for deferral.
PAYMENT PLAN/SMOOTH PAY
- It is a type of budget billing plan where the fixed amount is charged from
the customer in a defined 1 month interval for 11 months where clearing
is restricted between these intervals.
- And whatever the TRUE UP BALANCE is left . Customer has to pay the
amount and at the end of the year system will clear this entry.
T- codes - EK92 ,
CONFIGURATION
FICAIMG 1. SET UP COMPANY CODE FOR Contract Acc. Receivales & acc. Payable
Contract Acc. Receivales & acc. Payable
1. Set up company code
2. Define company code groups
3. Assign company codes to company
code groups

PAYMENTS ON ACCT. IN STND. CO CODE - TICK

TOTAL INVOICE - TICK FOR PERIODIC INVOICE WHICH WILL SHOW RECEIVABLE
PROFIT CENTER IN BP - NOT ALLOWED , SHOULD BE DONE IN FI
ACCT.ASSIGNMENT - WHEN ALLOWED IN PROFIT CENTER THEN IT WIL GO TO D
REC. FOR CHECK ENCASHMENT- ALL THE CHECK WIL RECEIVE IN GENERAL LED
CREATE DOWN PAYMENT - ALL THE PAYMENTS WILL COME IN DOWN PAYME
CHECK ESCHETMENT - THIS IS FOR UNCLAIMED MONEY THAT’S HAS TO BE RET
DISPUTE - THIS IS USED IN THOSE CASES WHERE DISPUTE IS GOING TO BE RES
MASTERN DATA GRPG LVL - SELECTING CONTRACT ACCOUNT WILL HELP IN D

2. Define company code groups

les & acc. Payable

WILL SHOW RECEIVABLES

TER THEN IT WIL GO TO DEFINED ACC MENTIONED IN FICA

RECEIVE IN GENERAL LEDGER ACCOUNTING
COME IN DOWN PAYMENT. BUT ONLY BE USED IN SECURITY DEPOSIT
Y THAT’S HAS TO BE RETURNED THEN WE GIVE IT TO THE GOVT.
UTE IS GOING TO BE RESOLVED
CCOUNT WILL HELP IN DUNNING VIA COLLECTION STRATEGY

We summarize the company

code into company code
groups. We assignn co.code
groups to paying co.code.
Paying cocode responsible
for automatic payment
which is Sap initiated
payment.
FQEVENTS is a enhancement technique for FICA related solutions and which enables easy and
quick navigation to customization points within the solution.

After executing this FQEVENTS transactions. List of processes will come up. After selecting any of
the process then the list of events assigned to this particular process comes up. While selecting
the events then documentation tab & function module tab comes up.

Where Documentation tab usually provide some background details about the event and how to
use it.
The Function module Tab shows what logic is called for this event and why. 3 logic is provided:-
1. Sample Module -
Configuration
1. Contract Account Receivables & Payable A.In this activity define reference interest
2. Business Transactions rates under a key.Define date-dependent
3. Interest Calculation interest values to the reference interest
A.Define reference interest rates defined in the activity maintain
rates. B.Define Percentage Rates values for reference interest rates.
for Reference Interest Rates.
C.Define Interest Calculation Rules
D.Define Interest Key
E.Maintain Amount Limits for Debit/Credit Interest

B. In this activity maintain the required

percentage rates (date-dependent) for
the reference interest rate.The reference
interest rates are assigned to the interest
calculation rules in the activity Define
interest calculation rules.

C. In this activity, define interest keys for

contract accounting.
ne reference interest
fine date-dependent
e reference interest
activity maintain
interest rates.

ntain the required

te-dependent) for
st rate.The reference
igned to the interest
he activity Define
ules.

fine interest keys for

METER TO CASH
It starts with Generating a - MRO(meter reading order) by running a T-code EL06 . Where simultaneously bill orders is
generated .Then meter reading gets uploaded After that bill is generated by running a T-Code (EAMABI) Next Invoice i
generated by t-code (EA10) by this invoice got posted and entry is created. That shows up in FPL9.
TECHNICAL MASTER DATA
Data that is used for providing the utility services at customers location are grouped under Technical master Data.
Connection Object(Building) ES55 ---- Premise (Flat) ES60-----Installation ES30 -----Create a DEVICE IQ01- ---- Install
device in INSTALLATION EG31
BUSINESS MASTER DATA
Data that is used for billing a customer for the services provided is grouped under Business data
Business Partner(a person or organization) - transaction FPP1            
Contract account( used for maintaining the payment, dunning and collection rules that are common to a group of
contracts ) - transaction CAA1            
Create Move In (Move the business partner into the premise) - transaction EC50E
re simultaneously bill orders is
-Code (EAMABI) Next Invoice is
up in FPL9.

der Technical master Data.

e a DEVICE IQ01- ---- Install

ness data

are common to a group of

 SECURITY DEPOSITS
SD is charged to customers where statistical receivable A. Define Number ranges for security Deposits.
document is created in FICA on the creation of SD request. The
deposit received will be treated as “Down Payment” with
“clearing restrictions”
There are 2 ways of collecting CASH SD & NON-CASH SD.
T-CODES - FPSEC1(CREATE)
FPSEC2(CHANGE)
FPSEC3(DISPLAY)

Configuration
1. Contract Account Receivables &
Payable 2. Business
Transactions
3. Security Deposits
A.Define Number ranges for
Security Deposits. B.Create special
definitions for security deposits.
C.Define request reasons for securities.

C.Define request reasons for securities.

TS
ecurity Deposits. B. Create special definitions for security deposits

Max. creditw. - Define a number

which shows credit worthiness.
Eg- we have inserted 300 in this
field . If customers has less than
300 customers is good or more
then customers is risky.

PAYMENT TERM IS USED TO

DETERMINE THE DUE DATE FOR
THE CUSTOMERS.

FPSEC3
 tw. - Define a number
ws credit worthiness.
e inserted 300 in this
stomers has less than
mers is good or more
mers is risky.

TERM IS USED TO
E THE DUE DATE FOR
OMERS.
 BUSINESS PARTNER
Configuration A.Define Number ranges .
1. SPRO
2. Cross
application-components
3. SAP Business
partner 4.
Business Partner
5.Basic Settings
A.Define Number ranges .
B.Define groupings & assign number
ranges. C. Define business partner type

B.Define groupings & assign number ranges.

C. Define business partner type

IN BP ROLES WE ASSIGN MKK ROLES TO CONTRACT PARTNER.

 CONTRACT ACCOUNT

artner type
TRACT ACCOUNT
 A. Define list category
Configuration
1. Contract Account Receivables &
Payable 2. Basic
functions
3. Account Balance display
A.Define list category.
B.Define line layout
variants for account balance. C. Maintain sorting
variants. D. Define
proposal for line layout.
E. Select fields for search functions.
F. Choose fields for selection function.
G. Select fields for sort functions.
H. Select additional fields to be
displayed.

B.Define line layout variants for account ba

PAYMENT TERM IS USED TO DETERMINE C. Maintain sorting variants.

THE DUE DATE FOR THE CUSTOMERS

FICA DOCUMENT
IT HOLDS ALL THE INFORMATION ABOUT SPECIFIC TRANSACTION
FINANCIAL TRANSACTION- BILLING & PAYMENT DOCUMENT
FINANCIAL TRANSACTION- BILLING & PAYMENT DOCUMENT

BUSINESS TRANSACTION- MOVE IN/OUT DOCUMENT , CONTACTS.

IT DOES NOT AFFECT IN FPL9

A DOCUMENT CONTAINS :-
HEADER DATA
LINE ITEMS
OFF SETTING ITEMS

DT - IT IS RESPONSIBLE FOR DIFFERENTIATING NUMBER RANGES

REPORT RFKKGL00 TRANSFERS THE TOTAL RECORDS ACCUMULATED IN RECONCILITION KEYS TO GL

PROGRAM RFKKGL20 IS USED TO RECONCILE THE GL WITH CA
 ACCOUNT BALANCE DISPLAY
A. Define list category.

→→→→→→→→

variants for account balance.

→→→→→→→→→→

D. Define proposal for line layout.

DOCUMENT

Header DatHeader Data

 Item Data

GL DATA

N KEYS TO GL
ANCE DISPLAY

→→→→→→→→

DFKKKO
DFKKOP

DFKKOPK
MAIN TRANSACTION SUB TRANSACTION MAIN TRANSACTION
1. This affect Balance sheet 1. This affect P/L G/L.
G/L. 2.In
2.IN FQC0 -- we put EK02 -- we put ROO1
ROOO for posting area. for posting area. Sub
Main transaction is transaction is
determined - where we determined where we
determine company code, determine company
division,Acc.Determination, code , division, Acc.
main transaction which is Deterniation id,main
assigned to G/L account. transaction , sub
transaction which is
assigned to G/L Account.

R000 Account Assignment Data Relevant to Main Transactions

Configuration A. Maintain Main Transactions.

1. Contract Account Receivables & Payable
2. Basic functions
3. Posting & Documents.

4. Document
5. Maintain document assignments.
A.Maintain Main Transactions.
B.Maintain Sub Transactions.
6.Maintain transactions for for IS-
U. C. Maintain
transactions charges , security deposits,down
payments,interest ,budget billing,payment on account,
returns, installment,wrte offs.
 SUB TRANSACTION

ansactions. B.Maintain Sub Transactions.

→→→→→→
 INSTALLMENT PLA
INSTALLMENT PLAN A.Define categories for installment plan.
It is used to arrange payments into multiple
receivables for BP who cannot keep up their
payment obligation.
FPR1: Installment Plan Creation
 You must have an open item before you are able
to create an Installment plan. Use transaction FPE1
to post a document.
FPR2: Installment Plan Deactivation/Change
FPR3: Installment Plan Display

Configuration
1. Contract Account Receivables &
Payable 2. Business
transactions. B.Define installment plan type.
3. Deferral & Installment Plan.
A.Define categories
for installment plan.
B.Define installment plan type.
 INSTALLMENT PLAN
ment plan.

→→→→→→→

→→→→→→→→→→ Inst. Interval - No.

Interval Type - Days,W
 WE DEFINE IP CATEGORY FOR
DIFFERENT SET OF CUSTOMER
DOMESTIC,INDUSTRIAL &
COMMERCIAL.

PERCENTAGE- OF DOWN PAYMENTS

AS PER DOMESTIC, INDUSTRIAL &
COMMERCIAL CUSTOMERS.

Inst. Interval - No. of intervals

Interval Type - Days,Weekly,Monthly
 DUNNING
Dunning is a process by which we can create and send payment reminders or dunning letters to the
business partners to remind them of overdue payables and to request payment.
Before starting the dunning run , we have to ensure that the posting situation is as up to date as
possible. Dunning is carried out in two stages:-
(FPVA)dunning proposal run – In this all the due items or the customers who have overdue balance are
identified and grouped together. And also determines dunning levels from dunning history.
(FPVB) – With this dunning activities is carried out.
Dunning by Procedure
Most conventional method where dunning procedure assigned to each contract account determines
the number of dunning levels and activity sequence.
It has a limit of 9 levels and work in a linear way.
This procedure considers only 1 parameter, How many days are left or no. of days in arrears and amount
of debt.
Dunning by Collection Strategy
A BRF plus tool that is (business rules framework) this enhances the dunning process.
It is based on business rules that are evaluated at run time.
Graphical tools for better UX.
Contract accounts can be treated individually or can be grouped together for collections.
It doesn’t work in a linear way or a fixed sequence of steps to be carried out.
Data that can be evaluated in the rules engine include the dunning data, dunning history, credit risk data
and many more ( including customer specific tables).

4.Dunning by dunning procedure

E. Define dunning procedure categories.

F. Define dunning level categories.

G. Configure Dunning Procedure
Firstly we define dunning
procedures, and then assign
dunning levels to each
individual dunning procedure.
The dunning levels basically
determine the dunning
interval, the charge schedule
used for determining the
dunning charges. In addition,
we define amount limits and
dunning activities for every
dunning level.

↓↓↓↓↓↓↓ Dunning levels

Dunning Activities
Disconnection Request
 DUNNING
3.Dunning
Configuration A. Define Charge categories for dunnin
1. Contract Account Receivables & Payable
2. Business transactions.
3. Dunning.
A. Define Charge categories for
dunning.
B. Define document types for dunning charge
categories.
C. Configure a charge schedules for dunning procedure.
D. Configure dunning activities.
4. Dunning by dunning procedure.
E. Define dunning procedure categories.
F. Define dunning level categories.
G. Configure dunning procedure.

B. Define document types for dunning charge categories.

In this activity, we define a

document type for each
dunning charge category. The
system then uses the
document categories defined
here to create documents
when we post the dunning
charges.

D. Configure dunning activities.

→→→
↓↓↓↓↓↓↓
 3.Dunning
Charge categories for dunning.

In this activity,.These
charge categories
are assigned to the
charge schedules in
the Configure
Charge Schedules

C. Configure a charge schedules for dunning procedure.

tivity, we define a
t type for each
charge category. The
en uses the
t categories defined
eate documents
post the dunning

↓↓↓↓
In this activity,We
define dunning
activities for dunning
open,
overdue items.Then
assign the activities
to the dunning
levels in the activity
Configure Dunning
Procedure

Days In Arrears- 3 days after the due date

Minimum amount for dunning
EXTERNAL COLLECTION AGENCIES
Receivables of inactive customers account is sent to external collection agency. These are the
cases where company is not able to collect it.
T- Code – FP03M ( Release it to collection Agencies)
FP03DM (It get submitted to collection Agencies)
Release it to collection agencies. FP03

Submit it to collection agencies. FP03DM

 Account Mai
Manual Account Maintenance can be executed in transactionFP06.

Mass transactionFPMA Automatic Account Maintenance can carry out

account maintenance for a large number of contract accounts or business
partners.
Account Maintenance
 Write-O

Write-offs are required if receivables are uncollectible or payables cannot be paid, it

means customers who doesn’t pay at all.
 
When write off happens , a/c is disconnected and sent to collection agencies.
Write off is a process to remove the bad debts and it also lower the tax liability.
 
T-code – FP04 – To manually write- off
FP04M – To do the automatic job.
Write-Offs
 CLEARING CONTROL

Clearing control tool used to configure a company’s clearing strategy.

It contains rules to configure clearing scenarios flexibly. Configuration
  1. Contract
Lets take one examples. One of our BP makes a payment of Rs 600 to his/her Payable
contract account without specifying the payment use in more details. Functions
  3. Open item Managem
And 2 items are still open in his account which is 1000 with due date 1 st 4. Clearing Control
January and 400 with due 5th Feb . In this scenario highest priority will be A.Define clearing catego
given to Rs 1000 that has to be cleared against the credit Rs 600 . Then the B.Define clearing type
item is split into a subitem of 600 which is cleared by credit and subitem of
200, which remains open.
 
So, clearing category + payment type determing clearing variant. Clearing
variant contains the clearing rules.

Clearing Control tool is used to confi

We define clearing category and
define clearing variant where we do
order.

Define Clearing Variants

In this activity you define clearing variants. A clearing variant consists of two components:
Clearing variant key
Clearing steps
Additionally, you can define alternative groupings and ranking orders for the individually used characteristics for each clea

Clearing variant key

The clearing variant key defines the name of the clearing variant. Additionally, a short description of the clearing variant c

Clearing steps
Every clearing variant should consist of at least one clearing step. The individual steps are to run consecutively in ascendin
The individual steps are largely independent of one another. They only get the amount to be cleared that still remains fro
With the exception of this rule, all clearing steps work independently of one another on the quantity of open items provid
The definition of a clearing step consists of entries in the:
Grouping string
Sorting string
Grouping rules
and the Clearing step end specifications.
Requirements
Standard settings
In the component Public Sector Contract Accounting, SAP delivers clearing variant 020 for the clearing sequence of public
With public-law receivables, the main receivables are cleared before the corresponding additional receivables. The oppos
Activities
1. Maintain the grouping string
2. Define a rule for grouping characteristic values.
3. Maintain the sorting string.
4. Maintain a ranking order and a sorting.
RING CONTROL

Configuration
1. Contract Account Receivables &
Payable 2. Basic
Functions Clearing category -CA residential , commercial,
3. Open item Management. Type - changel of payment
4. Clearing Control
A.Define clearing categories.
B.Define clearing type. These both defines clearing variant
Grouping 2020 for security depos
sorting descending
ascending

clr control - clearing category (maintaned at CA Level)

Plus payment type -> difine cleraing variant( clearing steps - this step
Grouping - I want security deposits should get cleared. Whenever th
sorting - sorting it by due date or posting date assending & descend

ontrol tool is used to configure a company's clearing startegy. It contains rules to configure clearing scenarios flexibily.
fine clearing category and type. And clearing category + payment type determines clearing variant. After that we
aring variant where we do the groupings and sorting. Sorting it by due date or posting date ascending or descending

haracteristics for each clearing step.

on of the clearing variant can be defined.

n consecutively in ascending order, as long as no subsequent step rule has been defined explicitly.
eared that still remains from the previous clearing step. Items that have been fully cleared in a clearing step are not transferred to the s
antity of open items provided.

clearing sequence of public law receivables and clearing variant 021 for private law receivables.
nal receivables. The opposite is true of private law receivables.
 at CA Level)
nt( clearing steps - this steps define a sequence of clearing)-> Grouping & sorting
get cleared. Whenever the payments comes sec
date assending & descending order

are not transferred to the subsequent steps.