PSCD Solution - Evaluation Task

 Incoming Payments – Interest Adjustment

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 Business Case Solution

 The municipality shall be able to process  Streamline the payments process for
payments that are received once a month incoming payments
from an external system  Standardized clearing for effective
 The payments can only be used to clear debtor invoice ageing
open items of a specific contract account  Correct the interest calculation on the
(contract account category ‘Z1’) of the cleared invoices
corresponding BP

 Oldest open items should be cleared first

 Ability to perform corrections in interest

calculations as the payment is processed
once in a month only

Tech Mahindra is committed to deliver & achieve the intended solution with pace,
certainty and strategic agility
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Our understanding of the critical considerations

Pace
Requirement Certainty Solution
Strategic Agility

Pace
• Accelerate project outcomes thru leveraging minimal
customization & use of standard SAP functionalities

Certainty
• Solution delivering high system performance
• Ability to perform interest run correction

Strategic Agility
• Flexible to adjust to changing needs based on our
understanding of complexities and unique challenges

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 Solution Approach - Option I

 Clear oldest open item first

– Create clearing variant with Grouping at Contract Account Level & Due Date and
Sorting in Ascending Order with Due Date as selection criteria
– Assign the clearing variant to the Payment Lot, Check Lot, Account Maintenance
– Chose the option of writing off the statistical item while clearing

 Posting correct interest calculation

– Create two variants and schedule them in schedule manager TCode FPINTM1
– While we will run the variant with statistical calculation always the other variant with
real posting shall be triggered after payment file is processed in the system
– The clearing rules will delete all the statistical postings for interest that has been
made in the system and schedule manager shall allow triggering of the interest
calculation for cleared item

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 Solution Approach - Option
II
 Clear oldest open item first
– Create clearing rule/variant with Grouping at Contract Account Level & Due Date
Sorting in Due Date as selection criteria
– Assign the clearing variant to the Payment Lot, Check Lot, Account Maintenance

 Posting correct interest calculation

– Create two variants for interest calculation with “Statistical calculation” & without
statistical calculation i.e. “real or posting to the GL” and schedule them in schedule
manager TCode FPINTM1
– While we will run the variant with statistical calculation always for the purpose of
calculation of the interest avoiding posting to the GL in financial accounting
– Once the payment file is processed in the PSCD, the “Z” development will check if
the open item has any interest document already existing in the system
 If yes, collect all the interest documents and reverse all the interest documents
relating to that open item.
– After the program executes, the interest run shall be triggered with real postings and
shall post the interest without statistical calculation checked
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 Solution Approach - Option III

 Clear oldest open item first

– Create clearing rule/variant with Grouping at Contract Account Level & Due Date
Sorting in Due Date as selection criteria
– Assign the clearing variant to the Payment Lot, Check Lot, Account Maintenance

 Posting correct interest calculation

– We shall enhance the complete functionality by using events 20 & 30 for checking
if any interest has been posted for the item which is about to get cleared
 If yes, then after event 30 is triggered for determining clearing document
number for the open item which is about to get cleared
 We shall reverse the posting of interest document and shall calculate the
correct amount by passing the cleared document to the BOR object, where we
shall recalculate the amount using event handler and post the correct
document while posting the clearing document.

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 Solution Analysis
Target & Option I Option II Option III Recommended
Deliver Value Approach

 Identification of major  Solution is focused on  Solution is more agile  A complete “Z”  Option I & II are the
gaps in processes leveraging the SAP and caters to all the solution, focused more recommended
 Identification of Standard out of the box needs with minor on achieving results approaches
functionality and not enhancements without using SAP  Option II suits the
customization of a
Coverage

allowing any room for  The process is focused Best practices requirements better, as it
logical process model
customization on using standard  This approach, if is more agile to the
 Identification of effort
 The solution is highly processes to automate implemented, shall changing needs of the
customization and
desirable and with the functions slow down the customers and caters to
maintenance costs to
performance of the all the scenarios
achieve target level of tailored approach the
 Option II is automated
integration function can achieve the system during mass

R
and uses SAP standard
desired results processing
functionalities and
system performance is
not impacted
 No customization  Minimized
 No maintenance Cost customization
Pros

 Covers all scenarios

 More focus on using
standard i.e. low
maintenance cost
 Program might be  Very minimal or no  Highly volatile, no
Cons

required incase we maintenance cost stable & high

want to reverse the maintenance cost
already posted items  Not SAP best Practice
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 Solution Walk Thru

 Assumptions

– Incoming payment interface file uses the payment lot transaction (FP05) for
processing the payments
– The actual interest will be calculated when the interest program is executed after the
payment file is processed
– Clearing rule is maintained in the configuration
– Interest Key, Interest Calculation rule is also maintained in the configuration

 Technical Solution

– Based on the clearing rule, system will clear the oldest open item
– At the time of clearing, check if the open item has any interest document already
existing in the system
 If yes, collect all the interest documents and reverse all the interest documents
relating to that open item

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 Solution Walk Thru

START

10
PAYMENT PROCESSED

20
CHECK VKTYP _PS= NO
Z1

YES

30
COLLECT ALL INTEREST DOCUMENTS
STOP

40
CHECK INTEREST DOCS YES
ARE REVERSED
DFKKIH-STOKZ = ‘X’

NO
50
REVERSE INTEREST DOCUMENTS

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Seq Activity Description
START Start of processing

10 Incoming Payment is processed and documents are cleared. Event 0020 gets triggered.

20 In the Event 0020,

Check (FKKOP-VKTYP_PS) Contract Account category = ‘Z1’.
If Yes then proceed to step 30.
If NO then proceed to STOP.
30 Identify any interest documents exist for open item by calling function module
FKK_INTEREST_HISTORY_GET.
If documents exist then proceed to Activity 40.
If no then stop.

40 Check if Interest documents are reversed

If Line Item in Interest History Reversed (DFKKIH-STOKZ = ‘X’) then proceed to STOP
If Line Item in Interest History Reversed (DFKKIH-STOKZ = SPACE) then proceed to step 50

50 Reverse all interest documents BAPI_CTRACDOCUMENT_REVERSE.

STOP End of processing

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 Solution Walk Thru

Event 0020 Posting: Document/Clearing Completed

 In the event 0020, the function module FKK_INTEREST_HISTORY_GET is called to

collect the interest documents for the particular open item

Event 0030 Posting: Document number assigned

 Update the custom table with interest documents with status N.

 If Interest documents exists from the above step, then function module
BAPI_CTRACDOCUMENT_REVERSE is called to reverse the interest documents
collected in the previous step
 Update the custome table with interest reversal status as S.

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