FS315 - 2005Q2 Lecture PDF

FS315 FS-CD Customizing
Internal
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FS315
FS-CD Customizing
Partner
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THE BEST-RUN BUSINESSES RUN SAP
SAP
SAP
© SAP
 SAP AG 2005, Overview, Speaker AG1
Name 2005
Partner
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SAP for Industries

2005/Q2
50075274
Internal
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Contact for Buying any SAP Module Materials: sapmaterials4u@gmail.com Visit: www.sapeducation.co.nr
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.
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General Information
z Objectives
The participant uses exercises to learn how to work independently in
Customizing for FS-CD
z Target Group
Project leaders, project team members, employees at the Customer
Competence Center and “module moderators“
Internal
Only
z Prerequisites
FS310 FS-CD Collections/Disbursements
z Software Component(s) and Release Status
Partner
R/3 4.6C, Kernel 4.6D, FS-CD Release 4.64
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SAP
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Partner
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Contents
Overview of Topics
1. Master Data
2. Postings and Documents
3. Correspondence
Internal
Only
4. Incoming Payments
5. Payment Program
Partner
6. Returns
7. Installment Plan
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SAP
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Partner
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Master Data - Orientation
Overview of Topics
1. Master Data
3. Correspondence
Internal
Only
5. Payment Program
Partner
6. Returns
7. Installment Plan
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© SAP AG FS315 1-1
Chapter 1: Master Data
Business Partner
Contract Account and Contract Account

Relationship
Internal
Only
Insurance Object and Insurance Relationship

Partner
Payment Plan
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Partner
Use
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© SAP AG FS315 1-2
SAP for Insurance
SAP for Insurance
Business Information Warehouse and Strategic Enterprise Management
Insurance Core Systems Business Support

Policy Claims
Marketing Management Management General Ledger
Collections and Disbursements

Management
LIFE LIFE
Controlling
Acquisition P&C P&C
and Sales
Product
Internal
Only
HEALTH HEALTH SRM

Claims
Handling
Reinsurance Human Resources
Commissions
Partner
Customer
Service
Financial Asset Management ...
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Business Partner
SAP Net Weaver
SAP
SAP
 SAP AG 2004
Partner
Use
The Business Partner component enables you to create and manage business partners centrally.
You can use the Business Partner component to group data that a company already stores in more than
one system. This means that potential new contracts can be identified within the same customer
contacts.
Internal
It is possible to integrate customer-specific data without modification. This guarantees complete

maintenance in the future. Defined interfaces exist for this purpose.
Only
Business Partner is a new, independent component, which is embedded in the SAP Business
Framework. This guarantees integration into an existing system landscape, and cooperation with other
external applications.
The SAP BP can be used as a server for non-SAP systems, as data is distributed using BAPIs. BAPIs
(Business Application Programming Interface) are called up from external systems, using various basis
technologies (COM/DCOM, CORBA, JAVA, RFC, and so on). In the future, it will be possible to
distribute business partner data to various systems.
Definition: Business Framework
• Open architecture, which is used to convert the functionality of the R/3 system into an integrated
package of modularized components.
• Components can be combined and assigned to one another however you want, and they can be
extended with compatible components from other providers.
© SAP AG FS315 1-3
Master Data for Collections / Disbursements
Operational Collections /
Insurance Systems Disbursements
Business Partner z Business Partner

Policies/Contracts z Contract Account
Claims Management
z Insurance Object
Commission
...
Internal
Only
ABC Insurance
Policy
Partner
POL4711
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SAP
SAP
 SAP AG 2004
Partner
Use
The business partner master record contains data that is required for the management of business
transactions, including addresses, bank details, telephone number(s), and application- and customer-
specific enhancements.
Postings for receivables or payables are always assigned to one business partner and one contract
Internal
account.
Only
© SAP AG FS315 1-4
Business Partner (BP)
X
Business Partner
(BP)
Y
Insurance
Contract Account Relationship
Internal
Only
(CA) (IR)
Contract
Account
Relationship
(CAR)
Z
Partner
Insurance Object
(IO)
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SAP
SAP
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Partner
Use
Internal
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© SAP AG FS315 1-5
Business Partner:
Business Partner:Requirements
Requirements (1/2)
(1/2)
Requirements SAP Business Partner

z BP at center of business z 1 business partner (business
interest, central view of BP partner role MKK)
z BP takes part in different z Functions: Correspondence
business processes recipient, dunning recipient,
alternative payer, account
Internal
Only
holder, and so on
Partner
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Partner
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Business partners are at the center of business transactions, and thus at the center of business interest.
All relevant information about a business partner must therefore be available quickly in consolidated
form. This means that a central view of a business partner over all areas is needed.
A business partner exists only once, regardless of the business transaction in which he or she is
Internal
participating.
A business partner can come into contact with a company in several situations. The information required
Only
on the business partner may vary, depending on the specific business processes in which a business
partner participates.
The business partner in FS-CD in created in the MKK role. Other roles are not available in FS-CD.
The technical conversion of a specific function for a business partner takes place by transferring the
business partner ID to a control field for the contract account/insurance object.
© SAP AG FS315 1-6
Business Partner: Requirements (2/2)
Requirements SAP Business Partner

z Company-specific information z Extensibility (release-
for a BP independent)
z Company-specific structure of z Configurability (release-
BP screens independent)
Internal
Only
z Cooperation with applications in z Communication (interfacing)

existing system landscapes using predefined methods
(BAPIs)
Partner
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SAP
SAP
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Partner
Use
Many companies require specific information about a business partner. SAP’s Business Partner offers
the central attributes of a business partner (such as name, addresses, bank details), as well as the
infrastructure for adding specific attributes. Downstream developments (R/3 applications, development
partners and customers) can extend the SAP BP with other attributes, without the need for modification
Internal
(release-independent).
Business partner master data screens can be adapted to suit company-specific requirements. You can
select the information that is available for a business partner, according to you requirements. Users can
Only
make use of the Visual Configuration Tool (VCT) to configure the Business Partner screen with "drag
and drop". No modifications are required for a release update.
Interfaces guarantee the integration of the business partner, and are required for problem-free
cooperation with applications in an existing, heterogeneous system landscape. SAP Business Partner
offers corresponding BAPIs (Business Application Programming Interface) for communication with
existing applications. These BAPIs enable other applications to access data from the SAP Business
Partner.
© SAP AG FS315 1-7
SAP BP as
SAP-BP as the
the Central
CentralAnchor
Anchor
Claimant
Payment
Recipient
Payer
Correspondence
Recipient
Business
Internal
Only
Policyholder Partner
Broker
z Neutral
Partner
z Persons,
groups,
Use
organizations
z Integration using business
processes
SAP
 SAP AG 2003
SAP
 SAP AG 2004
Partner
Use
Neutral application data such as name, address, bank details and payment cards are created in the
business partner master record. Special requirements are fulfilled for business partners that are
organizations, groups or individuals.
This also enables an open infrastructure for SAP business partners, to create application-specific
Internal
attributes for a business partner. SAP BP delivers defined interfaces, which can be used to link the BP
attributes from various applications. Existing BP assignments within SAP can then be integrated
gradually into SAP BP.
Only
The model for the new business partner in the R/3 standard allows the business partner (BP) to be
managed as the central data object.
© SAP AG FS315 1-8
Master Data: Create a Business Partner
Internal
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Partner
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Business partner category: Category in which a business partner is classified. The business partner
categories are fixed by SAP, meaning that cannot be customized. Nor is it possible to define customer-
specific business partner categories in addition to the business partner categories specified by SAP.
You cannot change the business partner category after creating a business partner. You have to
Internal
differentiate between the following business partner categories:

• Natural person (fixed value 1)
Only
• Organization (fixed value 2)
• Group of natural persons or organizations (fixed value 3)
[Business partner category → field in the data transfer recipient structure BUS_DI:BU_TYPE].
Business partner categories differ in the structure of the associated processing screens. For an
organization, you have the Legal Form field, which is not required for a natural person.
© SAP AG FS315 1-9
Grouping of Business Partner
Internal
Only
Business partner grouping decides about the number range. The

assignment cannot be changed afterwards.
When creating a business partner, the entry in the field ‘Grouping’
Partner
decides, if and how the field ‘Business Partner’ is filled.
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Important: All business partners that are used in FS-CD must be created in the fixed contract partner
role (key MKK). If you do not yet have this role (as the business partner comes from FS-CM, for
example), it must be assigned to you.
Internal
Only
© SAP AG FS315 1-10
Access to the Customizing Activities
Command field to enter transaction codes.

In this example, the customizing transaction
‘Edit Project’ (transaction code is SPRO) is
called in the same mode (option /n).
Internal
Only
Partner
Instead of using the command field, the

customizing transaction can also be called
within the SAP menu by a double-click.
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SAP
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Partner
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Internal
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© SAP AG FS315 1-11
The SAP Reference Implementation Guide (IMG)
Clicking the button ‘SAP

Reference IMG’ leads to
the SAP Customizing
Implementation Guide
(IMG).
Internal
Only
Partner
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SAP
SAP
 SAP AG 2004
Partner
Use
Internal
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© SAP AG FS315 1-12
Customizing: Define Number Ranges and Groupings
and Assign Number Ranges
Within the category

Cross-Application Components
Æ SAP Business Partner
Internal
Only
Æ Business Partner
Æ Basic Settings
there are activities for customizing number
ranges and groupings
Partner
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SAP
SAP
 SAP AG 2003
Partner
Use
Internal
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© SAP AG FS315 1-13
Customizing: Define Number Ranges
1 2
Besides displaying existing number range
intervals (button 1), you can also change
current number levels (button 2) or maintain
Internal
Only
number range intervals (button 3).

3
Partner
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Partner
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© SAP AG FS315 1-14
Customizing: Maintain Number Range Intervals
Further number range intervals can be

added and existing ones deleted.
Number range intervals are
Internal
Only
defined by a unique number

range number (No), an
interval (From number –
To number), the current
number, and an indicator
Partner
(Ext), which determines

whether the number range
interval is external or
Use
internal.
SAP
SAP
 SAP AG 2003
Partner
Use
The number range number (Nr) uniquely identifies a number range interval within an object or
subobject.
The from number is the lower limit for an interval. For internal intervals, the from number is the first
number that is assigned. For external intervals, it is the lower limit. External intervals can only contain
Internal
characters or numbers, as sorting can be different on various platforms.

The to number is the upper limit for an interval. For internal intervals, the to number is the last number
Only
that is assigned. For external intervals, it is the upper limit.
The number status contains the last assigned number for internal number range intervals.
Ext is the flag that determines whether the number range interval is external or internal. For internal
number range intervals, number assignment runs using the SAP system. A number is assigned
automatically. The automatically assigned number lies between the from number and the to number. The
last number assigned by the system is logged in the number status field. For external number
assignment, the user must enter a number. The entered number must lie between the from number and
the to number.
© SAP AG FS315 1-15
Customizing: Insert Interval
Insert new interval with the

number range number 99,
the displayed interval with
1001 possible numbers,
and internal number range
assignment.
Internal
Only
Partner
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SAP
SAP
 SAP AG 2003
Partner
Use
When adding new intervals, the existing number ranges are displayed with number, interval and the last
number status in the lower part of the window.
Internal
Only
© SAP AG FS315 1-16
Customizing: New Number Range Interval Inserted
The recently defined

interval was
successfully inserted
Internal
Only
into the list of existing

number range
intervals.
Partner
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SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-17
Customizing: Define Groupings and Assign
Number Ranges
Different buttons to change,

copy, and delete of existing
entries as well as to add
new ones.
Internal
Only
Business partner groupings are defined by a unique grouping number (Grouping),

Partner
a Short name, a Description, the Number range, an indicator to determine the

corresponding standard grouping (Int. Std. Grping, Ext. Std. Grping) as well as an
indicator to Hide a grouping in the F4 help.
Use
SAP
SAP
 SAP AG 2003
Partner
Use
The number ranges for the business partners must be defined in advance. When creating a business
partner, assign a group to each one. This decides what the number range is to be. It is not possible to
change the assignment at a later date.
The Num. Range field identifies the number range for number assignment.
Internal
The External field flags whether the number range interval is external or internal. The flag cannot be
changed here but it is dependent on the selected number range.
Only
Standard internal grouping (StInt field) means that this internal grouping is used as the standard
grouping. Master data control chooses this standard grouping if neither a business partner number nor a
grouping is assigned to a business partner during creation.
Standard external grouping (StExt field) means that this external grouping is used as the standard
grouping. Master data control chooses this standard grouping if a business partner number, but not a
grouping, is assigned to a business partner during creation.
The Hide indicator controls whether a grouping in the F4 help is offered for selection in a dropdown list
box.
© SAP AG FS315 1-18
Customizing: Insert New Groupings
Internal
Only
Insert new grouping with the grouping number 9901, the displayed short
name and description, and the previously defined number range 99.
Partner
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SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-19
Customizing: New Grouping Inserted
Internal
Only
The recently defined grouping

was successfully inserted into
Partner
the list of existing groupings.
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-20
Business Partner Type (BP Type)
Internal
Only
BP type offers grouping

possibilities for business
partners. Depending on
Partner
the BP type, single

fields for the data entry
can be faded in and out
Use
through customizing.
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-21
Customizing: Define BP Types and Configure Field
Attributes for each BP Type
Within the category

Internal
Only
Æ Business Partner
Æ Basic Settings
there are activities for defining business partner
types and for configuring field attributes per
business partner type
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
The business partner type presents a freely selectable grouping option for business partners in the
Customizing Implementation Guide (IMG). You can use the business partner type within the Configure
Field Attributes for each Business Partner Type to hide or show fields.
Internal
Only
© SAP AG FS315 1-22
Customizing: Define BP Types

new ones.
Internal
Only
Partner
Use
Business Partner Types are defined by a unique Partner Type number and a Description.
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-23
Customizing: Add New BP Type
Internal
Only
Add new Business Partner Type with partner type

number 9901 and corresponding description.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-24
Customizing: New BP Type Inserted
The recently defined
Internal
Only
business partner type

was successfully
inserted into the list of
existing partner types.
Partner
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SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-25
Customizing: Configure Field Attributes for each
BP Type
Button to configure field attributes

per selected business partner
type.
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-26
Customizing: Configure Field Attributes for each
BP Type
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
During master record maintenance within this Customizing activity, you use the business partner type to
determine which fields:
• Require an entry (mandatory)
Internal
• Are ready for input (optional)

• Are displayed (display)
Only
• Are hidden (hide).
For each field, this definition is linked to the field status for the other criteria. This linking
determines which status the field takes on in the input screen.
© SAP AG FS315 1-27
Consequences of the Field Attribute Configuration
(1/2)
Internal
Only
Partner
Use
Display of name attributes of an existing business partner of BP type
“Private Customer”.
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-28
Consequences of the Field Attribute Configuration
(2/2)
Internal
Only
Partner
Use
When changed to the customized BP type “FS-CD Worksh. – BP-Type 99”,
the display of name attributes is changed according to the configuration
(single field attributes are hidden, others are required).
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-29
Customizing: Maintain Forms of Address
Within the category

Æ Business Partner
Internal
Only
Æ Basic Settings
there are activities for maintaining forms of
address
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-30
Customizing: Maintain Forms of Address

new ones.
Internal
Only
Partner
Forms of Address are defined by a unique Key, the actual Title,

an indicator for a Person, Organization, or Group, and the
Use
Gender, if known.
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-31
Consequences of Maintaining Forms of Address
Internal
Only
Partner
The field Title offers the

previously customized
Use
possibilities of forms of
address.
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-32
Maintain Addresses of Business Partners (1/2)
Internal
Only
The tab Address Overview

serves to maintain existing
addresses or to add new
ones.
Partner
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 1-33
Maintain Addresses of Business Partners (2/2)
Besides Country and

Address Description, the
section “Address: Address
Overview” contains an
indicator to select the
Standard Address of the
Internal
Only
business partner.
The section Address

Usages realizes the
Partner
mapping of business
partner addresses to
different Address Types,
Use
that can be customized.
SAP
SAP
 SAP AG 2003
Partner
Use
Marking an address as the standard address (by activating the radio button) means that this address is the
standard address for the business partner. The standard address can be maintained on the screen for
processing the address in the business partner master data. All other addresses are maintained with the
Address Overview tab page. The standard address is important for address determination. If no address
Internal
is expressly specified, the standard address for the business partner is used.
Only
© SAP AG FS315 1-34
Address Usages
Internal
Only
Mapping of the existing

business partner addresses
to the available address
types.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Address usages present the assignment of business partner addresses to address types. If multiple
addresses exist for a business partner, you can assign business partner addresses to the address types,
using the Address Usages section in business partner maintenance. For example, you have created the
following address types within the Implementation Guide: Correspondence address and delivery
Internal
address. For a business partner with two addresses (one in Carlsberg and one in Kingsberg), you can
now double click on the address type to confirm that the correspondence is to be sent to Carlsberg and
the delivery to Kingsberg.
Only
Within the address usage, there are various freely definable and customizable address types, to which
you can assign multiple addresses, but just one must be defined as the standard address (standard
usage). If no address is expressly specified, the standard address for the business partner is used.
© SAP AG FS315 1-35
Customizing: Define Address Types
Internal
Only
Within the category

Æ Business Partner
Æ Basic Settings
Partner
there are activities for maintaining the Address

Determination.
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-36
Customizing: Maintain Address Types
Internal
Only
Partner
Address Types are defined by a unique Address Type Number, a

short name and name as well as an indicator that several (address)
usages can be maintained for each business partner.
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-37
External Address Number
Internal
Only
Partner
The External Address

Number refers to the
Use
address number of a
legacy or feeder
system.
SAP
SAP
 SAP AG 2003
Partner
Use
If the current address is already known in an external system under another number, you can define this
number in the External Address Number field, for information purposes. With Direct Input you have
the option of maintaining an address for a business partner by specifying the external address number. If
the business partner data is maintained in an operational system, you can follow the changes to a BP
Internal
address in the SAP system without having to know the SAP address number in the operational system.
Only
© SAP AG FS315 1-38
External Business Partner Number
Internal
Only
The External
Business Partner
Partner
Number refers to the

business partner
number of a legacy or
Use
feeder system.
SAP
SAP
 SAP AG 2003
Partner
Use
If the current business partner is known in an external system under another number, you can define this
number here for information purposes. With Direct Input you have the option of maintaining a business
partner by specifying the external business partner number. If the business partner data is maintained in
an operational system, you can follow the changes to a BP address in the SAP system without having to
Internal
know the SAP business partner number in the operational system.
Only
© SAP AG FS315 1-39
External Bank Detail ID
Internal
Only
External ID within the tab

Partner
“Payment Transactions”
refers to the bank details of a
legacy or feeder system.
Use
SAP
SAP
 SAP AG 2003
Partner
Use
If the current bank details are known in an external system under another ID, this ID can be defined in
the External ID field. Online, the ID in the external system is only used as information about the
number under which the bank details have been stored in your legacy system or operational system.
With Direct Input you have the option of maintaining bank details for a business partner by specifying
Internal
the external ID. If the business partner data is maintained in an operational system, you can follow the
changes to bank details in the SAP system without having to know the SAP ID in the operational
system.
Only
The bank data for each country is stored in the Bank Key field. The country-specific meaning of this
bank key is determined when defining the country key. Normally, banks are managed with their bank
code and the bank code is duplicated in the control data for the bank. In some countries, the bank
account number takes over this function; there is no bank code and the bank data is managed using the
account number. For data medium exchange, it can make sense to enter banks for foreign business
partners without a bank code, even if bank codes exist in those countries. In these cases, the bank keys
can be assigned internally. If the bank data is to be managed using another key, such as the SWIFT
Code, external number assignment can also be agreed upon.
The Bank Account field contains the number used to manage the account at the bank.
© SAP AG FS315 1-40
Data Origin
The Data Origin type

determines how the business
partner comes into the
system. The origin type is
only for information purposes.
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-41
Customizing: Maintain Data Origin Type (1/2)
Internal
Only
Within the category

Æ Business Partner
Partner
Æ Basic Settings
there is an activity for maintaining Data Origin
Types.
Use
SAP
SAP
 SAP AG 2003
Partner
Use
The data origin type determines the method used to bring business partner data into the system. The
origin type is only used for information during legacy data transfer, purchased address list, and so on.
Internal
Only
© SAP AG FS315 1-42
Customizing: Maintain Data Origin Type (2/2)
Internal
Only
Data Origin Types are defined by a unique Origin Type Number, a

Short name, and a Description.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-43
External Data Transfer Process
Transfer rule
z Transfer Begin
z Constants
z Variables ... Init
Set up
Log:
Sequential Unix file Sender Sender structure Recipient Incorrect
EXCEL file &CHECK&
structure SF1 SF2 SF3 SF4 structure records
Save Data pool:
Correct sets
Internal
Only
Front-end Commit INDX: Curr.

Import status
Data data Unix file:
selection EF1 EF2 EF3 EF4 End
Incorrect
e.g. policy Recipient structure records
Partner
Restart
Use
Customer SAP
SAP
SAP
 SAP AG 2004
Partner
Use
The sender structure can be freely defined. You can use fields that do not have to be added to the
business partner master data, for example. It is possible to use more than one sender file for a business
partner. Transfer rules can define constants and possess transfer routines. Errors can be postprocessed
online.
Internal
External data transfer takes place in multiple steps:

• The relevant data is taken from the external system by a data selection program and put into a
Only
sequential file. The data structure for the file is defined in the sender structure.
This transaction takes place outside of the R/3 environment and is not supported by R/3 programs.
Therefore the data selection program can make changes to data already at this point.
• The sequential file is stored on an R/3 application server or an R/3 presentation server.
• The R/3 transfer program reads the data from the file and puts it in the sender structure. No data is
changed here. This step is carried out internally by the system and does not affect the user.
• The R/3 transfer program then transfers the data from the sender structure to the recipient structure,
using transfer rules that are to be defined. Data can be changed or converted in this step. The
recipient structure is fixed in the SAP system. The assignment of the sender structure to the transfer
program and the assignment of the transfer program to the recipient structure takes place using a
defined transfer category.
• The data records in the recipient structure are processed sequentially and saved to the database if they
are correct.
© SAP AG FS315 1-44
Before you transfer external data for the first time, you have to make the following definitions:
• The structure of the data, which you find in the external system, may not match the structure
expected by the SAP system. The data may have to be enhanced. You have two main options for
adjusting the structure:
• You make the appropriate conversions and enhancements within the data selection program, before
you start the transfer to the SAP system. This solution offers you the most freedom.
• You execute the conversion with a specially-developed R/3 transfer program, using transfer rules.
• Then you define the fields for the sender structure. The system gives you the option of automatically
generating a sender structure compatible with the recipient structure.
• You use transfer rules to define the set of rules used to link the fields in the sender structure with the
fields in the recipient structure.
Then execute the transfer.
Internal
Only
Partner
Use
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 1-45
Customizing: Define Sender Structure
Within the category

Internal
Only
Æ External Data Transfer

there are activities for maintaining the External
Data Transfer.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
For every sender structure, the structure of the records, which are transferred from a source system to
the R/3 system, must be defined. It presents the data record structure for the transferred data, meaning
the field sequence and the technical description for the fields (field category, field length and field text).
To define the sender structure, you can use the structures available in the ABAP Dictionary (such as the
Internal
recipient structure), use tables, or define the structure yourself. When using SAP structures and tables,
you must ensure these can be changed for a new release.
This Customizing function and the function for defining transfer rules is used in various applications,
Only
such as EC-EIS, CO-PA, TR-TM and the SAP Banking industry solution. In some parts of the
individual applications, there are differences in the functions, which will be described separately.
© SAP AG FS315 1-46
Customizing: Sender Structure Maintenance (1/3)
Overview of different
existing sender
structures (e.g.
Internal
Only
CDCW99_GP_01), that
are used for external
data transfer.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
If data is transferred from an SAP system, the sender structure must have the name of the data retrieval
program, to link the retrieval program with the sender structure during data transfer.
Internal
Only
© SAP AG FS315 1-47
Internal
Only
Partner
Use
This screen is subdivided into three areas: (1) name of Sender Structure and
explaining text, (2) Transfer Type, and (3) table with input fields Item, Dictionary
Structure, Offset, Sender Field Length, and Field Value.
SAP
SAP
 SAP AG 2003
Partner
Use
The input fields for this overview screen are split into three areas:
• The upper part shows the input fields for the freely selectable name of the sender structure to be
defined, and for a short explanatory text.
Internal
• The middle part is set up differently in each application. Its uses include assigning the sender
structure to an object (transfer category, aspect, characteristic, …) or making further necessary
specifications.
Only
• The lower part shows a table in which you can enter one or more (in EC-EIS) structures or names for
new ABAP Dictionary structures that have to be defined. The disadvantage of including an existing
structure at this point of the sender structure is that it can no longer be changed. If you define a new
ABAP Dictionary structure and want to include it, the name must always start with ‘RKCT’ and
must also contain three other freely selectable characters. You define the new ABAP Dictionary
structure in a detail screen.
A transfer category determines which object can be transferred in external data transfer (EDT). A
category must be assigned to every transfer. Every category represents a recipient structure and,
implicitly, the object to be transferred (15 corresponds to the object for the central business partner).
Enter ‘1’ under Item in the table in the lower part. You can ignore the other lines in the table, because
the sender structure for external data transfer only uses one ABAP Dictionary structure.
The sender structures are stored in the ABAP Dictionary. Reference can be made to existing dictionary
structures, or new structures can be created. New structures must be created in namespace
© SAP AG FS315 1-48
“RKCT+++”. To define a new ABAP Dictionary structure, select the line and choose Goto -> Choose.
This takes you to the detail screen.
In the Field Value input field, enter the value in the records which shows which structure the record
belongs to.
Internal
Only
Partner
Use
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 1-49
Internal
Only
The sender structure is defined by

Sender Field, the referenced
Table, field Description, as well
as Type, Length, and Decimal
Partner
Places.
Use
SAP
SAP
 SAP AG 2003
Partner
Use
In the detail screen you can define a new ABAP Dictionary structure or change one that you have
defined yourself. To define the structure, you can include a template in this screen or define your own
structure. The recipient structure is automatically determined as a template, on the basis of the
specifications for the object that were made in the middle part of the previous screen on an application-
Internal
specific basis.
If you want to define the sender structure yourself, you have two options: You can define sender fields
or you can use fields that exist in the ABAP Dictionary.
Only
In the first case, you can choose the name freely. Then you have to extend the following specifications
in the column:
• Meaning, as a short explanatory text;
• Category, the field category (C, N, P, X, D, T, I, F);
• Length of the field;
• Decimal places, the number of decimal places (only for field category P)
In the second case, enter the name of the field, as it is in the ABAP Dictionary, in the Sender Field
column, and the table in which it occurs (reference table) in the Table column. The remaining
specifications for the line are then transferred automatically from the ABAP Dictionary.
Sender field describes a field in a sender structure. The data in the fields for the sender structure is
transferred to the recipient fields.
If you want to use the recipient structure as a template for the new ABAP Dictionary structure, choose
Sender Structure -> Include Template. (If you see a delete notice, choose Continue.) The fields from the
recipient structure are included.
© SAP AG FS315 1-50
Dictionary Structure BUS_DI
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2004
Partner
Use
The ‘BUS_DI’ structure is defined for business partner data transfer in the Data Dictionary (DDIC).
This structure contains all general data, address data, address usages and bank data for a business
partner.
The AKTYP field = activity can have the following values:
Internal
´01´ = create BP, ´02´ = change BP, ´04´ = modify BP, ´ ´ = more data for current BP
If a partner is to be created with 2 addresses, two data records have to be created for the structure. The
Only
first data record includes AKTYP = ’01’, as well as the first address. AKTYP = SPACE must be in the
second data record. It is just the data for the second address that is transferred.
AKTYP = ’04’ means:
• The partner is created if it is not yet available
• The partner is changed if it is available
During data transfer, up to 9 BP roles (for one BP) can be created at the same time, in one data record.
The fields RLTYP1 to RLTYP9 must be filled. At least RLTYP1 must be filled.
For external number assignment, the PARTNER field must be filled with the partner number, and
BU_GROUP = ‘external number assignment’ (e.g. GPEX). For internal number assignment, the
PARTNER field must remain empty, and BU_GROUP = ‘internal number assignment’ (e.g. GPIN).
The TYPE field can currently have 3 values:
‘1’ = natural person, ‘2’ = organization, ‘3’ = group.
The field must be filled during creation.
© SAP AG FS315 1-51
The BPEXT field gives you the option of keeping an external partner number in the SAP system. This
can be a number from the legacy system, for example. This means that change access can later be made
to a partner that has already been imported, without needing to manage the SAP partner number in the
legacy system.
To transfer, create or change addresses, (field CHIND_ADDR), telephone numbers (field
CHIND_TEL), fax numbers (field CHIND_FAX), teletext (field CHIND_TTX), telex (field
CHIND_TLX), SMTP Internet addresses for emails (field CHIND_SMTP), SAP Office “RML
addresses“ (field CHIND_RML), X.400 addresses (field CHIND_X400), RFC addresses (field
CHIND_RFC), printer addresses (field CHIND_PRT) and SSF, URI, PAG, address usage (field
CHIND_ADVW), bank details (field CHIND_BANK), payment credit cards (field CHIND_CCARD),
customer data (field DEP_CHIND), creditworthiness (field RAD_CHIND) and other BP-related master
data, the ”CHIND-field“ must be set as follows:
• U = Update (change to an existing data record)
Internal
Only
• I = Insert (create)
• D = Delete
• M = Modify (automatic check for change or creation)
Partner
Use
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 1-52
Customizing: Define Transfer Rules
Within the category

Æ External Data Transfer
Internal
Only
there are activities for maintaining the External

Data Transfer.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
You only need to define transfer rules here if you want to deviate from the standard 1:1 assignment, or
if you want to transfer currency amount fields. If you do not make a definition here, the fields from the
sender structure are transferred 1:1 to the fields in the recipient structure, as standard. This procedure
brings marked performance advantages. However, there are also restrictions:
Internal
The contents of fields that are delivered but that are not intended for transfer, are also transferred. In this
case, you also have to define the transfer rules for the recipient fields, which are not intended to be filled
with data (meaning that they are to remain blank). Assign the “Set to Initial Value” rule to the affected
Only
recipient fields in the detail screen (see later slides). If you do not want to assign any rules to the other
recipient fields, the standard assignment also comes into force for these, with the associated
performance improvements. Alternatively, you can also fill the fields in your sequential file so that they
do not contain any data that is not to be transferred.
No technical conversions (such as currency conversions or decimal place corrections for currency
amounts) are executed.
No consistency checks are executed for the sender field values: Are date values or packed numbers
plausible? Blank fields must therefore be filled appropriately, according to their category. Number, date
and time fields always have to be initialized with zeros.
Bottom line: If no transfer rules are defined, the entire conversion part of external data transfer is
technically replaced by move-corresponding statements from the sender structures to the recipient
structures. This normally leads to a correct result if the data has already been specially formatted for
R/3, by another R/3 system for example.
© SAP AG FS315 1-53
Note: If the Start Transfer function is used with data split for transfer categories with header item
structures, then the fields that uniquely identify the object to be transferred have to be taken out of the
sender structure proposal without changing the names and must be delivered with their contents. These
field names are listed in the documentation for transfer categories.
If the transfer is started without data split, these fields must also be delivered but their names can be
changed in the sender structure.
In this step, you define how and which fields in the sender structure are mapped to the fields in the
recipient structure. A prerequisite is that the sender structure must be defined before the transfer rules
are determined.
Internal
Only
Partner
Use
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 1-54
Customizing: Define Transfer Rules
Internal
Only
Choose sender structure for

Partner
defining or maintaining
transfer rules.
Use
SAP
SAP
 SAP AG 2003
Partner
Use
This initial screen is used to assign the transfer rules for each sender structure. Enter the name of the
sender structure here, for which you want to define or change transfer rules. Choose Rules -> Maintain
to get to the Maintain Rules for <Sender Structure Name> overview screen.
Internal
Only
© SAP AG FS315 1-55
Customizing: Maintain Transfer Rules (1/3)
This table is subdivided

into two areas:
(1) the fix columns
Internal
Only
Record Field,
Description, Type,
and Length of the
receiver structure and
(2) Sender Field,
Partner
Sender Field Value,

and Constant for the
mapping with the
sender structure and
Use
for the definition of
transfer rules.
SAP
SAP
 SAP AG 2003
Partner
Use
The table is split into two logical parts:

• The left section shows the fields for the recipient structure, is grayed out and cannot be changed.
The recipient structure is determined from the specifications that you made when defining the sender
structure.
Internal
• The right section shows the fields for the sender structure as well as other fields for defining the
rules.
Only
If the sender structure for the data to be transferred corresponds to the recipient structure, it is possible
to create an explicit MOVE rule for the system (Rules -> Create Rule Proposal). Fields for which no
assignment was generated are marked in color. However, you can enter the name of the sender field that
you want to assign to the recipient field, in the Sender Field column. You can define that just one value
is assigned to the recipient field, if the Sender Field has a Sender Field Value, which you define. Enter
the appropriate specifications.
You can define more rules on a detail screen. To do this, you must mark and select the line with the
recipient field for which you want to define special rules.
© SAP AG FS315 1-56
For the definition of

transfer rules for
characteristic fields, one
of the existing rule types
can be selected.
Internal
Only
Certain rule types must

be selected if sender
fields want to be
converted into specific
receiver fields where the
value of the receiver
Partner
field depends on the

values of one or several
sender fields.
Use
SAP
SAP
 SAP AG 2004
Partner
Use
The detail screen for defining transfer rules can change, depending on whether the field for which you
want to define a rule is filled with a characteristic or a key figure :
• Characteristic fields are fields that have the role of characteristics, attributes or classification keys
in the R/3 system (such as company code, posting date, order number). From a technical point of
Internal
view, these are errors from data category ‘C’, ‘N’, ‘D’ or ‘T’, which are not normally unit or
currency keys and which have a purely technical purpose (such as the client number).
Only
• Key figure fields are fields that have the role of key figures, values or balances in the R/3 system
(such as sales, revenue, headcount, and so on). From a technical point of view, these are errors that
are mostly from data category ‘P’ and can mostly be reckoned with .
You can use the following rules for characteristics :
• Transfer sender field
• Set constants
• Set variable
• Convert sender fields
• Apply general rule
Note: As soon as a general rule is references, it can no longer be deleted. If you want to delete the rule
in any case, you can add the rule to the referenced rule .
© SAP AG FS315 1-57
Internal
Only
Partner
This table for maintaining transfer rules determines which combinations
Use
of values in the sender fields are reassigned into specific values in the
receiver fields.
SAP
SAP
 SAP AG 2003
Partner
Use
In this detail screen you can define the values that the sender fields must have, to be converted to a
specific value in the recipient field. In the left column, enter the target values for the recipient field. In
the following columns, enter individual values or intervals for the sender fields (in this example, form of
address and gender). In order to ensure that a recipient field receives the specified value, all sender
Internal
fields must take on the specified values. If various sender fields are converted to the same value for the
recipient field, mark the line and click on the button to the right of the field. A symbol to the right of the
field, or the color of the button itself, show that there are multiple conditions.
Only
You can specify complex rules over multiple lines for a recipient field value. The first suitable rule is
applied for rule processing. The sequence of the rules during processing is not defined. The initial value
can be set explicitly set for a recipient field value .
If you transfer data to an R/3 system, the following transfer rules come into force :
• If a field in the sender structure is empty, the contents of the corresponding table field are deleted .
• If the NO DATA flag (/) is set for a field in the sender structure, the contents of the corresponding
table field are retained .
• If a field in the sender structure is filled, the contents of the corresponding table field is overwritten
with the contents of the structure field .
Example:
Structure Field Table Field Before Transfer Table Field After Transfer
'blank' -> Name X 'blank'
'/' (NO DATA) -> Name X Name X
Name X -> Name Y Name X
© SAP AG FS315 1-58
Business Partner

Relationship
Internal
Only

Partner
Payment Plan
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 1-59
Contract Account (CA) and Contract Account
Relationship (CAR)
X
Business Partner
(BP)
Y
Insurance
Internal
Only
(IR)
Contract (CA)
Account
Relationship
(CAR) Z
Partner
Insurance Object
(IO)
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 1-60
1 CA with Multiple Contract Account Relationships
(CAR)
Business Partner (BP1) Business Partner (BP2)

Peter Goldstein Linda Seiler
504030201 315263742
Contract Account (CA)

Premium Account (Life)
Internal
Only
Contract Account Contract Account 204080160320

Relationship 1 Relationship 2
(CAR 1) (CAR 2)
Holder other partner
Partner
z Multiple contract account relationships (CAR) for

various business partners can exist in parallel for
Use
one contract account (CA).
z However, it is not possible to create a contract account

without a contract account relationship.
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-61
1 BP with Multiple Account Relationships
Business Partner (BP1)

z A business partner can have
Peter Goldstein multiple parallel contract
504030201 account relationships with
various contract accounts.
Contract Account Contract Account (CA
1) z A business partner can be the
Relationship 1 holder of multiple contract
Life
(Holder)
204080160320 accounts.
z One business partner can be
the „other partner“ in relation
Internal
Only
Contract Account Contract Account (CA to several contract accounts.

2)
Relationship 2
(Holder) P&C z Various relationship
516274849506 categories can be defined and
maintained through
customizing.
Partner
Contract Account Contract Account (CA

3)
z You can change the
Relationship 3 relationship category between
Health
(other Partner)
Use
132537495163 the business partner and the
contract account.
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-62
Contract Account Relationship: Core Statements
zA contract account must have a contract account relationship with exactly

one business partner and the relationship category “Account Holder”.
Multiple contract account relationships between business partners and that
same contract account are possible, however, they must belong to the
relationship category “Other Partner”.
Internal
Only
zOnly one business partner can be the holder of a contract account

(relationship category).
The holder of a contract account can change, that means the contract account
relationship for a business partner can be changed from “Account Holder” to
Partner
“Other Partner”, if and only if another business partner becomes the new
“Account Holder” of that contract account relationship.
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-63
CA and CAR: Essential Parameters and Attributes
(1/2)
• Responsible Company Code

• Outside Account View
• Account Management
X • Interest Calculation Control
Business Partner
• Indicator: Check Coverage
(BP)
• Transaction Currency …
Contract Y
Insurance
Account Contract Account Relationship
Internal
Only
Relationship (CA)
(IR)
(CAR)
• Payment Control (Methods, Payers) Z

• Bank Details (IDs)
Partner
Insurance Object
• Payment Card (IDs) (IO)
• Clearing Category
Use
• Dunning Variant
• Correspondence Control
• Tolerance Group
• Cash Management …
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 1-64
CA and CAR: Essential Parameters and Attributes
(2/2)
Contract
Business
Account
Partner
Internal
Only
General Data General/Payt Dunning/Corr.

z Contract acct n o. z Account relationship z Correspondence
Partner
z Contract acct cat . z Payment methods variant

z Name z Alt. payer or payment z Invoicing Type
z Account view recipient z Dunning Variant
z Account z Bank details ID z ...
Use
Management z Locks
z ... z ...
SAP
SAP
 SAP AG 2004
Partner
Use
A contract account within the Collections/Disbursements system is a subledger account, to which

postings are made for open items. Different contract accounts permit various groupings for the business
partner's posting data .
If control parameters are set on business partner/insurance object level, the contract account is just used
Internal
as a separator for posting documents.

The contract account contains many control parameters, which control and influence the business
Only
transactions. For example:
• The account relationship identifies the business partner as the account holder, or other partner for the
account.
• The account view can be set to individual view or collective view. The posting data is dealt with on
contract level for the individual view, and on account level for the collective view.
• A contract account is managed on an open-account or (normally) an open-item basis.
• The correspondence variant and invoicing type define how the contract is handled, with regard to
creating and printing correspondence.
• The dunning variant identifies the type and process for the dunning procedure.
Documents, which refer to insurance relationships, are posted to the account.
© SAP AG FS315 1-65
Create a CA and a Contract Account Relationship
On a Contract Account,
receivables (demands, out-
standing debits) as well as
payables (liabilities, credits,
deposits, debts) can be
posted.
Every posted open item refers
to an Insurance Relationship,
i.e. a Business Partner in
Internal
Only
combination with an Insurance

Object.
Partner
A Contract Account (CA) is defined by a unique Contract Account Number (ID).

When a contract account is created, it is allocated to a Contract Account Category,
Use
which has particular characteristics.
A Contract Account Relationship (CAR) is defined by a unique combination of
Contract Account Number (ID) and Business Partner Number (ID).
SAP
SAP
 SAP AG 2003
Partner
Use
The contract account number is a key that uniquely identifies the contract account for each client. The
postings in contract accounts receivable and payable are always assigned to a contract account and a
business partner. In the contract account master record, business partner-specific procedures can be
define, which are to be applied during further processing of the line items. These include payment
Internal
methods, dunning procedures and tolerances. For utilities companies and insurance companies, a
contract is assigned to just one contract account. Multiple contracts can be assigned to one contract
account, dependent on the contract account category.
Only
SAP Direct Input recipient structure: “Account”, FKKVK_DI, transfer category 73.
© SAP AG FS315 1-66
Contract Account Category
Internal
Only
Partner
A Contract Account Category
Use
specifies grouping features for
those accounts, which have the
same control parameters
(core parameters).
SAP
SAP
 SAP AG 2003
Partner
Use
The contract account category describes a grouping characteristic for accounts that have the same
control characteristics. During creation, every contract account is assigned to a contract account
category, and receives certain properties. The contract account category CANNOT be changed after it
has been created. In the documents with certain origin keys, such as 01 manual posting, 12 installment
Internal
plan, V1 debit entry (contents of field in document header DFKKKO-HERKF, data element
“HERKF_KK”), which are posted to a contract account to which an insurance relationship is assigned,
the contract account category is transferred to every line item from the master data for the contract
Only
account (in field DFKKOP-VKTYP, data element “VKTYP_KK”)
Contract Accounts Receivable and Payable (FI-CA) describes a key used to define the properties that
a contract account (CA) takes on as soon as it is assigned to this key. A contract account category
defines the following properties:
• Whether one or more business partners are possible for each CA
• Whether one or more contracts are possible for each CA
• Whether collective invoices are possible for the CA
• Which number ranges (external/internal) are valid for the CA
• The editing screens or data fields that you can use to edit the contract account
• Whether it is possible to edit CAs online.
The tolerance group for the contract account describes the key used to define agreements for the
tolerance values for payment differences. The tolerance group is assigned to a business partner in the
© SAP AG FS315 1-67
contract account master record. The agreements defined for a tolerance group come into effect when
posting externally initiated payment transactions.
The clearing category for clearing postings describes the key that references the contract account
reference in manual clearing postings. In conjunction with the clearing type, this forms the key used to
define the clearing rules in Contract Accounts Receivable and Payable .
Internal
Only
Partner
Use
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 1-68
Customizing: Configure Contract Account
Categories and Assign Number Ranges (FS-CD)
Within the category

SAP Insurance
Æ Collections/Disbursements
Æ Basic Functions
Æ Contract Accounts
there are activities for maintaining number
ranges and contract account categories.
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Contract account categories can be grouped as you want, according to the line of business, premiums,
claims, benefits, coinsurance, subrogation, agents, commission contracts, brokerage agreements,
organizational unit, group / collective contract, or according to other criteria.
Within this Customizing activity, you define contract account categories that are then assigned to the
Internal
contract account master data during creation. You define an account creation variant for the contract
account category. When creating an account, the default values defined for the account creation
variant are used as (changeable) default values for the contract account master data.
Only
A prerequisite for configuring contract account categories is the definition of number ranges for
contract accounts beforehand.
© SAP AG FS315 1-69
Customizing: Maintain Contract Account
Categories (FS-CD)
Internal
Only
Partner
Contract Account Categories (FS-CD) are defined by a unique key (CAC),
Use
describing Text, the number range for Internal and External number
assignment, a field to choose creation variant for automatic account
creation, and various other indicators (OP, BM, 1C, DAI, IDDC, OABAL).
SAP
SAP
 SAP AG 2003
Partner
Use
The EP flag means that only one business partner can be assigned to a contract account from this
contract account category .
The HG flag means that contract accounts from this contract account category cannot be maintained
online .
Internal
The EV flag means that only one contract can be settled with a contract account from this contract
account category .
Only
The DK field specifies whether the account is managed on the debit side or the credit side (the field is
no longer used).
The deposit account flag (KZD) is not supported after Release 4.61, but is still available to avoid
inconsistencies when upgrading .
Deposit contracts or other contracts, for which balance interest calculation is to take place, can be
assigned to contract accounts from a contract account category, for which the KZDV flag (account
contains deposit contracts) is set. A contract account category with this flag has the following properties
:
• It can only be posted with one currency. This is defined for the account header .
• Only one insurance object and one business partner can be assigned .
• Interest calculation is only possible on balance level for the account .
© SAP AG FS315 1-70
• Only insurance objects which have the contract balance interest calculation flag for the external
insurance object category can be assigned to contract accounts from a contract account category, for
which this flag is set .
The selection of creation variants for automatic account creation means that the system creates or
defines a contract account when creating or changing insurance objects. A creation variant determines :
• The default values for the fields, which are filled during automatic contract account creation
• The rules used to check whether a new account is created or an existing account is sued when
assigning a partner to an insurance object .
The creation variants are defined in Customizing (see IMG structure SAP Insurance ->
Collections/Disbursements -> Basic Functions -> Insurance Object -> Define Account Creation
Variants .
The KKSALD flag (open account clearing with balance carryforward) controls the balance
Internal
Only
carryforward for open account clearing. If you set the flag, the open account clearing is executed with
balance carryforward. This means that all items up to the system date or the payment due date (to date)
are cleared and the remaining balance is reposted on the following day. If you do not set the flag, the
open account clearing is executed without balance carryforward. Items are cleared until the due dates or
the credit are cleared in full.
Partner
Use
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 1-71
Account View and Account Management
The field Account View

serves as additional criteria
for the grouping of items
during invoicing and for the
payment program.
The field Account
Internal
Only
Management specifies the

kind of account
management.
Both parameters belong to
the cross-partner data
Partner
(contract account header)

of the contract account.
Use
SAP
SAP
 SAP AG 2004
Partner
Use
The outward account view is used as another criterion for grouping items during invoicing, and for the
payment program. The account view CANNOT be customized. There are two different views:
• Single View (S)
The items for a contract account are grouped together for each insurance object, so that a separate
Internal
invoice (with the invoicing function) or debit memo (with the payment program) is created for each
insurance object or contract that is assigned to this account.
Only
• Collective View (C)
All items for the contract account are grouped together using all insurance objects, so that a
collective invoice or debit memo is created for all contract that are assigned to this account.
• If collection/disbursement and/or correspondence creation is to take place using the parameters
defined for the insurance object (and not using the parameters defined for the contract account to
which the account view belongs), the programs work with the ‚Single View of Account’ grouping
criterion. If collection/disbursement and/or correspondence creation take place using the parameters
defined for the contract account, the account view specified on contract account level is used.
The account view has become less important since FS-CD Release 4.64. You can now use the
increased flexibility and more powerful settings for extended grouping (in the IMG, see SAP
Insurance -> Collections/Disbursements -> Business Transactions -> Payments ->
Incoming/Outgoing Payment Creation -> Extended Grouping).
© SAP AG FS315 1-72
Account management is used to mark the account management type. The account view CANNOT be
customized. You can choose between open account or open item management):
• OI Management (O)
Every OI is cleared individually.
• Open Account (A)
Clearing only takes place on balance level, there is no direct assignment of receivables/payables
to incoming payments.
Accounts with private customers are managed on an OI basis. Reinsurance accounts are managed on an
open account basis.
Internal
Only
Partner
Use
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 1-73
Responsible Company Code
The field Responsible

Company Code belongs to
the cross-partner data of
the contract account.
It specifies the automatic
processing of payment
transactions for its own and
other company codes.
The field Responsible
Internal
Only
Company Code belongs to

the cross-partner data
(contract account header)
of the contract account.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
The responsible company code field (Resp. Co. Code) for open account processing takes over
processing for automatic payment transactions for its own and other company codes. The postings on
bank clearing accounts created for payments always take place in the responsible company code. Just
one responsible company code is always assigned to each company code. Each individual contract
Internal
account refers to just one responsible company code, in which the appropriate definitions for processing
incoming and outgoing payments for the account are defined. You can only post to the contract account
in company codes that you have assigned to the responsible company code specified in the contract
Only
account.
A company code is the smallest organizational unit in external accounting for which complete
accounting can be mapped. This includes the entry of all events required for posting and the creation of
all notes for legal individual account closing, such as financial statements and profit and loss
calculations.
© SAP AG FS315 1-74
The field contract Account

Relationship specifies the
role of a business partner
for a contract account
Internal
Only
(contract account
relationship category).
The field Account
Relationship belongs to
the partner-specific data of
Partner
the contract account

(contract account
relationship).
Use
SAP
SAP
 SAP AG 2003
Partner
Use
The account relationship defines the role that a business partner plays for a contract account. It is
possible to use the account relationship to differentiate between multiple business partners for a contract
account. This means that you can define that a payment on account is to be assigned to the account
holder for automatic payment clearing, for example. The account holder relationship can only be
Internal
assigned to one business partner for each contract account. If a contract account category is marked as
a one-time account, multiple business partners can be maintained as account holders for a contract
account.
Only
© SAP AG FS315 1-75
Customizing: Maintain Contract Account
Relationships
Within the category

SAP Insurance
Æ Basic Functions
Æ Contract Accounts
there are activities for maintaining contract
Internal
Only
account relationships.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-76
Customizing: Maintain Contract Account /
Business Partner Relationships
Internal
Only
Partner
Contract Account relationships are defined by a unique key

(Account Relationship), a Description, and an indicator for
Use
the business partner to be account holder (AH).
SAP
SAP
 SAP AG 2003
Partner
Use
The KI flag means that a business partner that is in this relationship to the contract account is also the
contract account holder. Only one business partner can be the account holder for a contract account, to
which multiple business partners are assigned. Normally, the policyholder is defined as the contract
account holder.
Internal
Only
© SAP AG FS315 1-77
Clearing Restriction
The field Restriction

specifies a proposal for
the clearing restriction to
the contract account, that
is to be transferred to the
documents.
The field Restriction is
Internal
Only
EMPTY for every contract

account category, except
for deposit accounts (see
next slide).
Partner
belongs to the partner-

specific data of the
contract account (contract
Use
account relationship).
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-78
Clearing Restriction only for Deposit Accounts

specifies a proposal for the
clearing restriction to the
contract account, that is to
be transferred to the
documents.
If a contract account of
Internal
Only
type “Deposit Account” is

created, the clearing
restriction “Deposit: …” is
automatically entered and
cannot be changed.
Partner
This is a consequence of
the definition of the
contract account category
Use
for deposit accounts (see
next slide).
SAP
SAP
 SAP AG 2003
Partner
Use
The clearing restriction describes a proposal for the clearing restriction on the contract account, which
is transferred to the documents. If the clearing restriction is filled for the contract account, all items
posted to the account take this clearing restriction. Deposit: Open Account Clearing Only is required for
“Deposit Contract Accounts” (also known by the short name “deposit accounts”).
Internal
A clearing restriction is a key used to define what business transactions are used to clear an open item.
The system marks down payments that were created as a result of down payment requests or budget
billing requests, as long as this has been defined in Customizing for Contract Accounts Receivable and
Only
Payable. The following is valid for Utilities (IS-U): Budget billing payments for existing budget billing
requests are to be marked in Customizing as suitable for clearing with the year-end final settlement. This
clearing restriction cannot be changed manually. For example, down payments made by the business
partner are to be cleared in the year-end final settlement. Early clearing for other clearing transactions,
or accidental clearing of the item, is to be avoided.
© SAP AG FS315 1-79
Customizing for Deposit Accounts:
Configure Contract Account Categories (FS-CD)
Internal
Only
Insurance objects based on the internal insurance object category 50

Partner
(“Deposit Contracts”) require their own contract account with the

settings of a deposit account. Deposit accounts MUST have their own
contract account category.
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Contract accounts of this contract account category allow only one business partner to be assigned to a
contract account (OP ). The items posted to this contract account can only have one currency. The
deposit currency is defined in the general data tab (cross-partner data).
Also, it allows only one Insurance Object (IO) to be assigned to this contract account (1C ).
Internal
In this special case (deposit account), the IO must be based on the internal insurance object category 50
(“Deposit Contract”).
Only
Furthermore, the indicator IDDC (account contains deposit contracts) shows, whether deposit contracts
or other contracts (insurance objects) that are to undergo account balance interest calculation can be
assigned to contract accounts of this category.
Finally, the indicator OABAL (Clearing on Open Account Basis Active with Balance Carry-forward)
controls the balance carryforward for open account clearing (account management).
© SAP AG FS315 1-80
Tolerance Group for Contract Accounts
The field Tolerance Group

describes the key under
which stipulations are made
for the tolerance values for
payment differences.
The field Tolerance Group
Internal
Only
belongs to the partner-

specific data of the contract
account (contract account
relationship).
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
The tolerance group describes the key used to define agreements for the tolerance values for payment
differences. The tolerance group is assigned to a business partner in the contract account master record.
The agreements defined for a tolerance group come into effect when posting externally initiated
payment transactions.
Internal
Only
© SAP AG FS315 1-81
Customizing: Maintain Tolerance Groups (1/2)
Within the category

SAP Insurance
Æ Basic Functions
Æ Open Item Management
Internal
Only
there is an activity for maintaining tolerance

groups.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-82
Customizing: Maintain Tolerance Groups (2/2)
Internal
Only
Tolerance groups are are defined by a unique key (Tol. Group) and a
describing Text.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
The tolerance group influences clearing control (within a clearing variant) and can be used to
differentiate between the returns activities for a returns reason (Customizing activity Configure
Returns Reasons under SAP Insurance -> Collections/Disbursements -> Basic Functions ->
Business Transactions).
Internal
Only
© SAP AG FS315 1-83
Clearing Category
The field Clearing Category

describes the key, that
references the contract
account reference in
Internal
Only
automatic clearing postings.

The field Clearing Category
belongs to the cross-partner
data (contract account
header) of the contract
Partner
account.
Use
SAP
SAP
 SAP AG 2003
Partner
Use
The clearing category for clearing postings describes the key that references the contract account
reference in manual clearing postings. In conjunction with the clearing type, this forms the key used to
define the clearing rules (clearing variant) in Contract Accounts Receivable and Payable. The clearing
category is defined in the contract account. You can use the clearing category to assign individual
Internal
clearing rules to various customer groups, such as household, commercial, and public institutions.
The clearing type for clearing postings describes the key that represents the business transaction in
automatic clearing postings. This is used for payment assignment/clearing rule determination in
Only
Contract Accounts Receivable and Payable. The clearing types are structured according to their areas of
implementation (incoming payment, account maintenance, and so on). The clearing types delivered by
SAP cannot be changed. With few exceptions, they correspond to the original used in the clearing
process.
© SAP AG FS315 1-84
Customizing: Define Clearing Categories and
Types
Within the category

SAP Insurance
Æ Basic Functions
Æ Open Item Management
Æ Clearing Control
there are activities for maintaining clearing
categories and types.
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-85
Customizing: Maintain Clearing Categories
Internal
Only
Partner
Use
Clearing Categories are defined by a unique key (ClCat.)
and a describing Name.
SAP
SAP
 SAP AG 2003
Partner
Use
You can use clearing categories to influence the extended grouping of payments (incoming payments,
direct debit, outgoing payments, bank transfer, outgoing check, and so on): See “Extended Grouping ->
Grouping Variants”.
Internal
Only
© SAP AG FS315 1-86
Customizing: Maintain Clearing Types
Clearing Types are defined by an

identification code for the
application area (Appl. Area), a
Internal
Only
unique key (ClType), and a

describing Name.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
The Application Area field describes an abbreviation for the application area, which uses the functions
of Contract Accounts Receivable and Payable. The application area is noted in all important data areas
in Contract Accounts Receivable and Payable, to enable control of data processing on an application-
specific basis. For example, you can format application-specific additional functions or replace standard
Internal
processing with application-specific process (application-specific algorithms and employed by the

automatic assignment of incoming payments to open items, for example). You can define the application
area that is valid for you, in your user parameters or during general selection for the application area .
Only
WARNING: It is possible to define your own clearing types in Customizing – but this means
changing table from class E. This is only allowed in permitted value areas (see table TRESC). It is
also an extension of the standard coding to be able to take your own entries (modification) into
account.
© SAP AG FS315 1-87
Technical Information About Clearing Type
The Clearing Type is maintained within

the field VERART of the generated view
V_TFK110. It is a key that represents
the business case in automatic clearing
Internal
Only
postings. In Contract Accounts

Receivable and Accounts Payable, this
determines the payment
assignment/clearing rules.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-88
Maintain View V_TFK110
Internal
Only
Partner
Use
The view V_TFK110 serves to maintain the clearing type and emanates from
the join of the two tables TFK110 and TFK110T.
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-89
Table TFK110: Delivery Class E
Internal
Only
Partner
The table TFK110 belongs to Delivery Class E.

Note: Customizing of tables of class E is possible but ONLY within the allowed
Use
range of values (see table TRESC) AND ONLY by adding own entries
(Æ modification) to the standard coding.
SAP
SAP
 SAP AG 2004
Partner
Use
The delivery class controls the transport of date from the table during installation, upgrade, client
copying, and during transports between customer systems. The delivery class is also taken into account
in Extended Table Maintenance. You can use the following delivery classes:
• A: Application table (master data and transaction data).
Internal
• C: Customer table, data maintained exclusively by customers.

• L: Table for storing temporary data.
Only
• G: Customer table, SAP can add new data records but cannot overwrite or delete existing records.
• E: System table with own name spaces for customer entries. The customer namespace must be
defined in the TRESC table.
• S: System table, data changes have the status of program changes.
• W: System table (table for development environment, for example), whose data can be be transported
using own transport objects (R3TR, PROG, R3TR, TABL, and so on.
© SAP AG FS315 1-90
Table TRESC – Entries of Name Spaces
Internal
Only
Partner
Use
The table TRESC defines customer name spaces. The selection screen
allows you to select entries with TABNAME = TFK110.
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-91
Table TRESC – Selection for Entry TFK110
Internal
Only
Partner
The table TRESC contains 3 entries for TABNAME = TFK110, where different name
spaces for the clearing type are defined by the field KEYLOW:
X* specifies the name space for entries of development partners
Use
Y* specifies the name space for entries of system and consulting partners
Z* specifies the name space for entries of customers
SAP
SAP
 SAP AG 2003
Partner
Use
The KEYLOW field describes the namespace for a key field [in the example above, it is the clearing
type (field name VERART)] and represents a generic specification of the protected namespace (lower
case). The generic specification of the reserved name area consists of the alphanumeric start of the area
and the character “*“. If the asterisk is not entered, just one entry is specified.
Internal
Examples: Z* means all entries beginning with Z, Z stands for the entry “Z “ (dependent on key field
length)
Only
Note: Lower case letters are converted to upper case.
© SAP AG FS315 1-92
Dunning / Correspondence
The control parameters within
Internal
Only
this tab (Invoice Type,

Dunning Variant,
Correspondence Variant,
and Correspondence
Dunning Procedure) will be
Partner
explained on the slides with

the master data for the
insurance relationship.
Use
SAP
SAP
 SAP AG 2004
Partner
Use
All control parameters that can be defined here in the master data for the contract account relationship
cam also be entered in the master data for the insurance relationship. Within the master data for the
insurance relationship, you can also define whether these control parameters are to be valid/active on
insurance level or on insurance relationship level. The control parameters listed here are explained in the
Internal
slides for the insurance relationship master data.
Only
© SAP AG FS315 1-93
Reference to the Master Data for the Insurance
Relationship (1/2)
Internal
Only
Within the master data

for the insurance
relationship, the radio
button determines on
which level (insurance
relationship or contract
Partner
account relationship)
the control parameters
(e.g. Dunning Variant)
Use
are set active.
SAP
SAP
 SAP AG 2004
Partner
Use
This slide is used as a reference to the selection or definition of the level (insurance relationship or
insurance account relationship) on which the control parameters are to be active.
NOTE: Selection can only be made on the lower detail level, meaning in the master data for the
insurance relationship. The control parameters listed here are explained in the slides for the insurance
Internal
relationship master data.
Only
© SAP AG FS315 1-94
Reference to the Master Data for the Insurance
Relationship (2/2)
Internal
Only
Within the master data for

the insurance relationship,
the radio button determines
on which level (insurance
relationship or contract
Partner
account relationship) the

control parameters (e.g.
correspondence variant,
Use
correspondence dunning
procedure, invoicing type)
are set active.
SAP
SAP
 SAP AG 2004
Partner
Use
This slide is used as a reference to the selection or definition of the level (insurance relationship or
insurance account relationship) on which the control parameters are to be active.
NOTE: Selection can only be made on the lower detail level, meaning in the master data for the
insurance relationship. The control parameters listed here are explained in the slides for the insurance
Internal
relationship master data.
Only
© SAP AG FS315 1-95
Dictionary Table: Contract Account Header
„FKKVK“
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Master data or control parameters on contract account level, and therefore NOT partner-related
(meaning that the master data or control parameters are valid for all contract account relationships in this
contract account for various business partners – “cross-partner”). The business partner is NOT used as a
key here.
Internal
Only
© SAP AG FS315 1-96
Dictionary Table: Contract Account
Partner-Specific „FKKVKP“
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Master data or control parameters on contract account relationship level, meaning that all data is partner-
related (so that the master data or control parameters are only valid for the relationship of this contract
account to a certain business partner – “partner-specific“). The business partner is an important part of
the key in this instance. (contract account VKONT ↔ business partner GPART)
Internal
Only
© SAP AG FS315 1-97
Business Partner

Relationship
Internal
Only

Partner
Payment Plan
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 1-98
Insurance Object (IO) and Insurance Relationship
(IR)
X
Business Partner
(BP)
Y Insurance
Contract Account
Relationship
Internal
Only
(CA)
Contract (IR)
Account
Relationship
(CAR)
Z
Partner
Insurance Object (IO)
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 1-99
1 IO with multiple Insurance Relationships
Business Partner 1
Peter Goldstein
Insurance Relationship 1
Business Partner 2
Linda Seiler
Insurance Relationship 2
z An insurance object can have multiple, parallel
Internal
Only
relationships to various business partners,

meaning that multiple insurance relationships
can exist for the same insurance object. Insurance Object
Health: KV123456
z Various insurance relationships (between one
Partner
insurance object and different business partners)

can be assigned to one contract account.
z Alternatively, you can assign each insurance
Use
relationship to a separate contract account.
This means that it is not important to know
which business partner is the holder of which
contract account.
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-100
1 BP with multiple Insurance Relationships
Three Insurance Relationships

Business Partner 1
Peter Goldstein
z An insurance relationship is always

Insurance Object 1
composed of one insurance object Auto Insurance: KFZ987654
and one business partner.
z A business partner can have multiple,
Internal
Only
parallel relationships to various

insurance objects – meaning that
multiple insurance relationships can Insurance Object 2
exists for the same business partner. Life Insurance: LV47110815
Partner
Use
Insurance Object 3
Health Ins.: KV123456
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-101
Insurance Relationship: Core Statements (1/2)
z An insurance relationship must be assigned to exactly one contract account. The

assignment to a contract account can be changed, which means it is possible to
place a different contract account within the insurance relationship.
z A contract account relationship (as the holder or as another partner) must exist
between the business partner – for which the insurance relationship is created –
and the contract account (which is registered in the insurance relationship). This
Internal
Only
means that the business partner does not necessarily have to be the holder of the
contract account.
z Various insurance relationships (for one business partner) can be assigned to one
Partner
contract account.
z If various insurance relationships exist (1 BP ↔ n IO, n BP ↔ 1 IO, n BP ↔ n IO),
Use
every single one of them can be assigned to a separate contract account.
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-102
Insurance Relationship: Core Statements (2/2)
z Customizing allows to set account creation variants for automatic contract account
creation. Possible control parameters are “contract account categories” and
“external insurance object categories” that can also be customized. Based on that,
it is possible to have multiple contract accounts automatically created, such that
only certain insurance objects – in the sense of grouping – can be assigned to each
contract account.
Internal
Only
z In case of a new installation of an insurance relationship, an account creation

variant serves to:
- place an existing and appropriate contract account within this insurance

Partner
relationship, i.e. to assign it to the contract account; or
- automatically create a corresponding contract account – if not yet existent – and
Use
to place this new contract account within this insurance relationship.
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-103
1 Insurance Object : 1 Contract Account
Three Insurance Relationships

Business Partner 1
Peter Goldstein
Contr. Account 1
for IO 1
Insurance Object 1
Auto Insurance: KFZ987654
Contr. Account 2
Internal
Only
for IO 2
Insurance Object 2
Life Ins.: LV47110815
Partner
Contr. Account 3
for IO 3
Three Contract Account Relationships
Use
Insurance Object 3
Health Ins.: KV123456
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-104
1 Contract Account for each Business Partner
Three insurance relationships

business partner 1
Peter Goldstein
Contr. Account 1
for BP 1
One contract account relationship Insurance Object 1

Internal
Only
Insurance Object 2
Life: LV47110815
Partner
Use
Insurance Object 3
Health: KV123456
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-105
1 Contract Account for each Line of Business
Three insurance relationships

Business Partner 1
Peter Goldstein
Contract Account 1
P&C
Insurance Object 1
Auto Insurance: AI987654
Contract Account 2
Internal
Only
Life
Two contract account relationships Insurance Object 2

(for each line of business) Life (endowment): LE2196
Partner
Use
Insurance Object 3
Life (unit-linked): LU60504
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-106
2 BP ? 1 IO: 1 CA
Two insurance relationships

for the same insurance object
Business Partner 1 can be assigned to the same
Peter Goldstein contract account
Insurance
Relationship 1
Contract Account
Relationship 1
(Holder)
Contract Account 1 Insurance Object 1
Internal
Only

Contract Account
Relationship 2
(other Partner)
Insurance
Relationship 2
Partner
Business Partner 2
Linda Seiler
Use
For this, each of the business partner
must have a contract account relationship
with the same contract account
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-107
2 BP ? 1 IO: 2 CA
Two insurance relationships

to the same insurance object
Business Partner 1 can be assigned to two
Peter Goldstein different contract accounts
Contract Account 1 Insurance

Relationship 1
Contract Account
Relationship 1
Insurance Object 1
Internal
Only
Contract Account
Relationship 2
Contract Account 2
Insurance
Relationship 2
Partner
Business Partner 2
Linda Seiler
Use
For this, each of the business partners
must have a contract account relationship
with another contract account
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-108
IO and IR: Essential Parameters and Attributes (1/2)
• Payment control (methods, payers)

• Payment card IDs / bank details IDs
• Dunning variant
X • Broker accounting parameters
Business Partner
• Correspondence control
(BP)
• Payment plans / option …
Y Insurance
Contract Account
Relationship
Internal
Only
(CA)
Contract (IR)
Account
Relationship
(CAR)
Z
Partner
Use
External Insurance Object Category
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 1-109
IO and IR: Essential Parameters and Attributes (2/2)
Assignment Business Partner ⇔ Insurance Object
Internal
Only
Insurance Object
Collection / Disbursement Broker Correspondence Payment Plan Broker Collection
Partner
Use
Parameters are set for every Insurance Relationship
SAP
SAP
 SAP AG 2003
Partner
Use
An insurance object can be an insurance policy, a broker contract, a claim number, a commission
contract, and so on.
The Collections/Disbursements data can be set for the insurance object, as well as for the contract
account.
Internal
Broker data is required if a broker is to be used to manage and/or invoice the insurance object.
Correspondence data can be set for the insurance object as well as for the contract account.
Only
Payment plan data is required for the execution of payment plans.
Broker collections data is required if the insurance object is a broker contract.
© SAP AG FS315 1-110
Create an Insurance Object and an Insurance
Relationship
Internal
Only
In the field Partner,

a reference to a uniquely
identified business partner (ID)
is established.
Partner
Different input fields are relevant to the creation of an
Use
Insurance Object (IO) and an Insurance Relationship (IR):
- Identification for an Insurance Object (from the Feeder System)
- External Insurance Object Category
SAP
SAP
 SAP AG 2004
Partner
Use
When creating an insurance object, enter a unique number for identification in the Insurance Object
field. Invoicing-specific parameters can be specified with the unique key.
Insurance object categories differ in the specific combinations of management-specific and invoicing-
specific parameters that are important for the following functions:
Internal
• Collections/Disbursements
• Broker (broker data that is not relevant for broker collections)
Only
• Correspondence
• Payment plan and payment plan items
• Broker Collections
• Claims
Insurance object categories are used to classify and group insurance objects. Insurance object categories
are used to define the selection of tab pages and fields when creating, changing and displaying an
insurance object. This means that the data relevant to an insurance object from the broker contract
category is different to the data for an insurance object from the claim number category.
Internal insurance object categories are hard-coded by SAP and cannot be changed.
External insurance object categories are defined in the Implementation Guide by the company and are
assigned to the internal insurance object categories.
The partner field defines a key that identifies a business partner for each client in the R/3 system .
© SAP AG FS315 1-111
Assign an Insurance Relationship to a Contract
Account
Internal
Only
In the field Contract Account, the

assignment between the Insurance
Relationship and the entered
Partner
Contract Account is established.
Use
SAP
SAP
 SAP AG 2003
Partner
Use
SAP Direct Input recipient structure: “Insurance Object”, DIMA_A_DI, transfer category 120
Internal
Only
© SAP AG FS315 1-112
Customizing: Define Insurance Object Categories
Within the category

SAP Insurance
Æ Basic Functions
Internal
Only
Æ Insurance Object
there is an activity for defining the
External Insurance Object Categories.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
The insurance object category has decisive influence on the option of defining default values in the
master data for the insurance object when creating an insurance relationship, as well as in the master
data for the insurance relationship. The external insurance object category also determines the formation
and usage of account creation variants.
Internal
Only
© SAP AG FS315 1-113
Customizing: External Insurance Object Categories
Internal
Only
You can assign default values An External Insurance Object Category is defined
to the insurance object with a unique key, which is assigned to an Internal
Partner
categories that you have Insurance Object Category, a Text (short descrip-
defined. The default values tion), a flag for Contract Balance Interest Calculation
are automatically taken as a (if the Insurance Object is used as a deposit contract
Use
proposal (that can be “inside” a deposit account) and a specific Indicator:
changed if required) when “n Accounts for each Insurance Relationship”
creating an insurance object. (used for Reinsurance)
SAP
SAP
 SAP AG 2003
Partner
Use
The object category is the key for an insurance object category. Insurance object categories differ in
the specific combinations of management-specific and invoicing-specific parameters that are important
for the following functions:
• Collections/Disbursements
Internal
• Broker (broker data that is not relevant for broker collections)

• Correspondence
Only
• Payment plan and payment plan items
• Broker Collections
• Claims
By selecting an insurance object category, you determine which fields are offered to you, or are ready
for input, on the insurance object maintenance initial screen (on the Collections/Disbursements,
Brokers, Correspondence, Payment Plan tab pages). This means that the data relevant to an insurance
object from the broker contract category is different to the data for an insurance object from the claim
number category.
The Contract Balance field describes a flag to show whether contract balance interest calculation has
been executed for an insurance object that is assigned to this insurance object category. If you set the
flag, the insurance object is included in balance interest calculation. If you do not set the flag, the line
items for the insurance object are included in item interest calculation. You must assign insurance
objects, for which the flag on the insurance object category is set, to contract accounts, for which the
“Account Contains Deposit Contracts” flag on the contract account category is set.
© SAP AG FS315 1-114
Indicator: n Accounts for each Insurance Relationship
If you set this flag, you can define n accounts for each insurance relationship, with differing responsible
company codes.
Dependencies
The function is available if you have installed SAP for Insurance Reinsurance, and an entry therefore
exists in the AVERS table.
Internal
Only
Partner
Use
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 1-115
Add a New External Insurance Object Category
If You make a new entry it is

mandatory to define an
External Insurance Object
Category (e.g. “Z2: household
insurance“) and assign it to a
SAP Internal Insurance Object
Category (e.g. “10 Insurance
Policy“).
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
In this Customizing step, you define (external) insurance object categories and assign them to the
(internal) insurance object categories delivered by SAP, such as insurance policy, broker contract,
commission contract and claim number. You can assign default values to the insurance object
categories that you have defined. The default values are automatically transferred as (changeable)
Internal
proposals when creating an insurance object. You cannot change internal SAP insurance object
categories.
Internal insurance object categories are hard-coded by SAP and cannot be changed.
Only
External insurance object categories are defined in the Implementation Guide by the company and are
assigned to the internal insurance object categories.
After creating an insurance object (including the insurance relationship), for which a set – self-defined –
external insurance object category is entered, this external insurance object category CANNOT be
changed. Changing the assignment of an external insurance object category for an internal insurance
object category is feasible (and possible in Customizing), but it would cause problems as you cannot
estimate the consequences of such an action in advance. The following examples are given:
a) External insurance object category HR “Home Contents Insurance” -> internal insurance object
category 10 “Insurance Policy “
b) External insurance object category WG ”Buildings Insurance” -> internal insurance object category
10 “Insurance Policy “
NOTE: If an existing insurance policy, which was created in FS-CD with the external insurance object
category HR as “Home Contents Insurance” can be converted to a buildings insurance by the leading
© SAP AG FS315 1-116
operational system (Policy Management) – so that the external insurance object category for the existing
insurance object would have to be changed to WG in FS-CD – WITHOUT changing the insurance
number (INSOBJECT = VTREF = ID of insurance object), then there would be N O differentiation
between the external insurance object categories a) HR and b) WG in FS-CD. An external insurance
object category must be defined instead, under which you can group together the two policy types, home
contents and buildings, with SV “Non-Life Insurance” as an overall term, for example.
Internal
Only
Partner
Use
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 1-117
IR Master Data: “Collections/Disbursements” Tab
Internal
Only
It is necessary to select whether the

collection / disbursement parameters
(settings) should be active on the
Insurance Relationship or on the
Partner
Account Relationship.
Use
SAP
SAP
 SAP AG 2004
Partner
Use
All control parameters that can be defined here in the master data for the insurance relationship can also
be entered in the master data for the contract account relationship. Within the master data for the
insurance relationship, you can also define whether these control parameters are to be valid/active on
insurance relationship level or on contract account relationship level.
Internal
Only
© SAP AG FS315 1-118
IR Master Data: “Correspondence” Tab
It is necessary to select whether the correspondence

parameters (settings) should be active on the Insurance
Relationship or on the Account Relationship.
Internal
Only
Partner
The Invoicing Type is the key

to specify which types of hard
copies and associated control
Use
characteristics for invoicing are
grouped together.
SAP
SAP
 SAP AG 2004
Partner
Use
The invoicing type is the key used to group together the types of printed correspondence and associated
control characteristics for invoicing. You assign an invoicing type to a correspondence variant that you
configured and define the combination of correspondence variant and invoicing type in the contract
account or insurance object master data. When the invoicing run is executed, the control characteristics
Internal
for a contract account defined in the invoicing type are evaluated and the associated printed
correspondence information is sent to an external text processing system, using a print interface. You
can:
Only
• Include individual payment methods, or all payment methods, in invoicing
• Include invoiced open items in invoicing
• Include statistical items in invoicing
• Include deferred items in invoicing
• Ignore negative document line items
• Accept negative invoice totals
• Explain partial clearings by using payment plan items
Invoicing types include invoices, transfer media, and so on.
© SAP AG FS315 1-119
Customizing: Define Invoicing Types
Within the category

SAP Insurance
Æ Business Transactions
Æ Invoicing (FS-CD)
Æ Define Invoicing Types
there is an activity for defining an
Invoicing Type and specify the basic
settings.
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
In Customizing, every invoicing type is linked to a contract account category. In the contract account,
you can only define invoicing types that are assigned to the appropriate contract account category.
Internal
Only
© SAP AG FS315 1-120
Customizing: Change or Create Invoicing Types
Internal
Only
In Customizing, every Invoicing Type is linked to a Contract Account Category. Only

Invoicing Types that are assigned to the appropriate Contract Account Category can be
Partner
defined for the contract account.

The important settings OP, I, S, R, N(1), N(2) and P specify which items are taken for the
invoice and how they are grouped. Also, you have to define, which Application Form is used
Use
to produce an invoice and (optional) which Application Form for Credit Memos.
SAP
SAP
 SAP AG 2003
Partner
Use
category, and receives certain properties.
The AZ flag specifies whether the items for all payment methods appear on the invoices. If you set this
flag, all payment methods that have been defined for the document or in the insurance object/contract
Internal
account master data are taken into account for invoicing. You can assign individual payment methods to
an invoicing type. In the Implementation Guide, choose Collections/Disbursements à Invoicing à Define
Additional Payment Methods for Invoicing Types.
Only
The F flag means that invoiced open items are included in invoicing.
The S flag means that statistical items are included in invoicing.
The S flag means that items are included in processing without checking the deferral date. If the item is
not set, a check is made to see whether the item with its deferral date is earlier than the limit for the due
items. Only then will the item be listed.
The N flag means that negative line items are not taken into account. If you set this flag, line items with
negative amounts (credits for the customer) are not taken into account for the insurance invoice.
The N flag means that invoices are also created if the total amount (in this case, due to credits to the
policyholder) is negative. You can use a separate credit form to create credits.
The T flag means that line items that come from partial clearing are explained by the underlying
payment plan item on the insurance invoice.
The application form contains the flow logic for a print program, in hierarchy form. Every application
form is based on a form class, which contains the data hierarchy and is comparable to a logical database.
A print program, in the form of a function module, is generated from the application form.
The application form for credits is used if the total amount (in this case, for credits to the policyholder)
is negative. This form is only used if the flag for credit creation is defined for the invoicing type.
© SAP AG FS315 1-121
Business Partner

Relationship
Internal
Only

Partner
Payment Plan
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 1-122
Grouping Category
Internal
Only
The Grouping Category

describes the key for the
Partner
grouping of open items.
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Grouping category describes a key for grouping open items. Entering the key for a grouping category
decides which open items, which have been created from a payment plan item, are grouped by the
system in one document with various line items. Those items that match in terms of certain values (such
as business partner or due date) are grouped together. The grouping category includes the criteria for
Internal
which items must display matching values, so that they can be grouped together in one document with
multiple line items.
Example: If a grouping category is assigned to a payment plan, which can be recognized by a
Only
combination of the due date, business partner, contract and currency criteria, those items that have
the same due date, belong to the same business partner and contract, and which have the same
currency, are grouped together in one document.
© SAP AG FS315 1-123
Customizing: Define Item Grouping Categories
Within the category

SAP Insurance
Æ Payment Plans
Æ Settings for Debit Entry
Internal
Only
there is an activity to define item

grouping categories.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
In this step, you can define grouping categories for open items. This allows you to group together
certain payment plan items for a document with multiple line items. The following fields are mandatory
for grouping and are fixed in the system:
Business Partner
Internal
Insurance Object
Currency
Only
Document Type
© SAP AG FS315 1-124
Customizing: Maintain Item Grouping Categories
Internal
Only
Every item
grouping
Partner
category is
defined by item
grouping fields
Use
(criteria), that
characterize
this grouping An item grouping category is defined by a
category. unique key (Group Cat.) and a Description.
SAP
SAP
 SAP AG 2003
Partner
Use
Within Collections/Disbursements (FS-CD), the item grouping fields describe the criteria that
determine which open items can be grouped together in one document with multiple line items in the
payment plan functionality. If the open items match in terms of the values for the fields that correspond
to the criteria (such as due date or business partner), they can be grouped together.
Internal
Only
© SAP AG FS315 1-125
Customizing: Maintain Item Grouping Field
Internal
Only
The item grouping fields Item grouping fields are

Partner
describe the criteria that defined by the Field Name

determine which open items of the table, structure, or
that have been created from view.
Use
a payment plan are to be
grouped by the system in one
document with different line
items.
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-126
Summarization Category
Internal
Only
The Summarization
Category decides
Partner
which open items that

have been created from
a payment plan item are
Use
combined by the system
in a single item.
SAP
SAP
 SAP AG 2003
Partner
Use
Entering the key for a summarization category decides which payment plan items are grouped together
when creating the document(s) (debit entry = execute payment plans) in a single line item on the
subledger side (business partner item). Those payment plan items that match in terms of certain values
(such as business partner or due date) are grouped together. The summarization category includes the
Internal
criteria for which items must display matching payment plan item values, so that they can be grouped
together for one business partner item within a document.
Example: If a summarization category is assigned to a payment plan, which can be recognized by a
Only
combination of the due date, business partner, contract and currency criteria, those payment plan items
that have the same due date, belong to the same business partner and contract, and which have the same
currency, are grouped together. The new total document gets a business partner item with the same
attributes as the original payment plan item, which has the largest amount share of the total document
(the payment plan item with the largest amount determines which attributes are used).
© SAP AG FS315 1-127
Customizing: Define Item Summarization
Categories
Within the category

SAP Insurance
Æ Payment Plans
Internal
Only
Æ Settings for Debit Entry

there is an activity to define item
summarization categories.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
In this step, you can define summarization categories for open items. This allows you to group certain
payment plan items to a single item. The following fields are mandatory for summarization and are
fixed in the system:
Business Partner
Internal
Insurance Object
Currency
Only
Due Date
Deferral Date
Document Type
Main and Subtransaction
Statistical Flag
Insurance Tax Schedule
© SAP AG FS315 1-128
Customizing: Maintain Item Summarization
Categories
Internal
Only
Every item
summarization
Partner
category is defined
by item
summarization
Use
fields (criteria), An item summarization category is defined
that characterize by a unique key (SC) and a Description.
this summarization
category.
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-129
Customizing: Maintain Item Summarization Fields
Internal
Only
The item
summarization
fields describe the
criteria that
determine which
Partner
open items that

have been created
from a payment Item summarization fields are defined by
Use
plan are to be the Field Name of the table, structure, or
grouped by the view.
system in a single
item.
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 1-130
Control Parameters and Attributes – Summary (1/2)
• Complete partner data • Responsible Company Code External Insurance

• Bank details data • Outside Account View Object Category
• Payment card data • Account Management
• Interest Calculation Control
• Cash Management
Insurance
• Indicator: Check Coverage
Relationship
• Transaction Currency … (IR)
X Z
Business Partner (BP)
Contract Account
Internal
Only
Relationship (CAR) Y
Contract Account (CA)
• Payment control (methods, payers) • Payment control (methods, payers)

Partner
• Payment card IDs / bank details IDs • Payment card IDs / bank details IDs
• Clearing Category • Dunning variant
• Interest calculation control • Broker accounting parameters
Use
• Cash Management • Correspondence control
• Dunning Variant • Payment plans / option …
• Correspondence control
• Tolerance group …
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 1-131
Control Parameters and Attributes – Summary (2/2)
Posting data:
Document header
z Addresses and and line item
communication
z Address usage
Business Many control parameters can be overwritten or
z Bank details extended with data that is contained in
Partner documents.
z Payment cards
Payment methods or dunning procedures can be
z Relationships defined for the document, for example.
n n
Contract Acct Relationship Insurance Relationship
m
Internal
Only
n Insurance Object
m 1
z Payment control z Payment control
Contract Account
z Payment card/bank details ID z Payment card/bank details ID
z Interest calculation
Partner
z Interest calculation
z Correspondence control z Correspondence control
z Dunning variant z Dunning variant
Account relationship
Use
z z Broker
z Account view z Broker collections
z Tolerance group z Payment plan/payment plan item
SAP
SAP
 SAP AG 2004
Partner
Use
The following relationships exist between business partner, contract account and insurance object:
A contract account is assigned to just one business partner as the account holder.
A contract account, for which an account holder is defined, can be assigned to another business partner
Internal
that is not the account holder.

Multiple contract accounts can be assigned to a business partner.
Only
An insurance object can be assigned to multiple business partners. More than one insurance object can
be assigned to a business partner.
Just one contract account is assigned to each unique business partner/insurance object relationship
(insurance relationship). Multiple insurance relationships can be assigned to a contract account.
A range of parameters exists for the insurance object and for the contract account. For the insurance
object, you set whether it is the parameters for the insurance object or contract account that are to be
used.
The following settings are only possible for the contract account, for example: Account relationship,
tolerance group, account view, account management, clearing category.
The following settings are only possible for the insurance object, for example: Broker, broker
collections, payment plan, payment plan items.
© SAP AG FS315 1-132
Exercises
Chapter: Master Data

Topic: Customizing
At the conclusion of these exercises, you will be able to:

• Create business partner groupings
• Create business partner types
Internal
Only
• Define field modifications

• Create contract account categories
• Create insurance object categories
Partner
• Define account creation variants
Use
ABC Insurance manages partner data with the central business partner. The
business partners can be split into various groupings. These business partner
groupings have differing number ranges and different data has to be entered for
each business partner type.
SAP
SAP
ABC Insurance is active in diverse insurance lines of business. Various

contract account categories and external insurance object categories are
required for structuring.
Partner
Use
As a member of the project team you are responsible for configuring the
Collections/Disbursements system so that it covers this scenario.
Internal
1-1 ABC Insurance requires you to enter data for business partners in the “ABC Employees”
grouping that differs from data entered for other partners.
Only
1-1-1 Firstly, you have to define a new internal number range ### for the business partners,
with an interval of 100###00000 to 100###99999.
1-1-2 You can now create your new business partner grouping (BP grouping) B## with the
short description “Employee ##” and the name “ABC Employee ##”. Then assign
your internal number range ## to your BP grouping.
1-1-3 In order to enable you to make specific field modifications for ABC employees, you
first have to create a new business partner type (BP type) PA## called “ABC
Employee ##”-
1-1-4 You can now make the settings for field modifications for your new BP type. Define
the Forename, Last Name field as being mandatory for your new BP type PA##, and
hide the payment cards field.
© SAP AG FS315 1-133
1-2 As these business partners also require special settings for Collections/Disbursements, you
have decided to create a new account category.
1-2-1 Firstly, you have to define a new internal number range ## for contract accounts, with
an interval of 000###00000 to 000###9999999.
The interval for the internal number range for the contract account category
must have at least two leading zeros. These spaces are reserved for check
digits.
1-2-2 You can now define your new contract account category. For this, create a contract
account category ## called “ABC Account ##” and assign your internal number range
## to the contract account category.
Internal
Only
1-3 It is also possible to conclude a specific insurance policy for the ABC partners.
Partner
1-3-1 Therefore you need to create a new insurance object category ## called “ABC Policy
##”. The new insurance object category is an insurance policy. No default values are
to be defined for insurance object creation.
Use
1-3-2 You now have to define a new insurance object category grouping. For this, create a
grouping ## called “ABC Contract Accounts ##” and assign your insurance object
category ## to the grouping.
SAP
SAP
1-3-3 Contract accounts are not to be created separately. Define an account creation variant
## called “ABC Creation Variant ##”, which only creates one account for a BP and an
insurance object category, and assign the account management (KONTF), account
view (KTOSI), tolerance group (TOGRU), company code (OPBUK), account
Partner
Use
relationship (VKPBZ) and contract account category (VKTYP) fields to the account.
Enter the following values:
Internal
Field Name Value

KONTF 0
Only
KTOSI S
OPBUK V001
TOGRU 0001
VKPBZ 01
VKTYP ##
1-4 Now test your settings by creating a new ABC business partner and assigning 2 ABC
policies to it. The contract accounts should be created automatically with your creation
variant.
© SAP AG FS315 1-134
Postings and Documents - Orientation
Overview of Topics
1. Master Data
3. Correspondence
Internal
Only
5. Payment Program
6. Returns
Partner
7. Installment Plan
Use
 SAP AG 2004
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 2-1
Chapter 2: Postings and Documents
Document Types and Company Codes
Maintain Main and Subtransactions
Internal
Only
Automatic G/L Account Determination

Partner
Account Balance Display
Use
 SAP AG 2004
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 2-2
Subledger and Integration
Business
Partner Bank
SAP R/3 General Ledger

Policy
Mgmt
FS-CD
Profitability
Internal
Only
Coll./ Analysis
Commission
System Disb.
Cost Center /
Profit Center
Claims Mgmt
Partner
Cash Management
Calculating Invoicing
Use
Systems System
Subledger
 SAP AG 2004
SAP
SAP
Collections/Disbursements is a settling system, while Policy Management, Claims Management and

other operational systems are calculating systems. The calculating operational systems calculate
Partner
Use
premium or claim payments, and forward the values to Collections/Disbursements.

Documents can be posted manually or created automatically in FS-CD (charges or interest, for
example).
A sub-ledger account (contract account) exists for every accounting document.
Internal
G/L accounts are determined automatically by G/L account determination.
Only
© SAP AG FS315 2-3
Document Type
The Document
Type classifies
contract
accounting
documents.
Internal
Only
Partner
Use
 SAP AG 2003
SAP
SAP
The document type classifies the documents in Contract Accounts Receivable and Payable. It is
saved in the document header when posting a document. A number range for the creation of
Partner
Use
individual documents is assigned to every document type online. The number range defines how the
Document Number field is filled. You can also assign more number ranges for automatic creation,
to a large number of documents in parallel background processes, which are required by the
payment program, for example. More number ranges are not required if the document type is
assigned to an external number range.
Internal
According to the number assignment type, the document number is assigned automatically when
posting a document, or you can enter it when entering the document. The document type entered in
Only
the document header is decisive for the number assignment type. It determines:
• A number range from which you can choose the document number
• Whether the number is assigned automatically or manually.
© SAP AG FS315 2-4
Customizing: Maintain Document Types and Assign
Number Ranges
Within the category

SAP Insurance
Æ Basic Functions
Æ Postings and Documents
Æ Document
Internal
Only
Æ Maintain Document Assignments

there are activities to maintain Document Types.
Partner
Use
 SAP AG 2003
SAP
SAP
In this step, you maintain your document types for the business transactions in Contract Accounts
Receivable and Payable. Document types differentiate business transactions and control document
Partner
Use
storage, using the number ranges assigned to them. The document number is determined from the
number ranges when posting a document. You can use a number range for multiple document types.
However, you must note that you require number ranges for individual processing and mass
processing. The document types are valid on a cross-client basis. A prerequisite is that the number
ranges that you want to assign to the document types, are defined.
Internal
Only
© SAP AG FS315 2-5
Customizing: Maintain Document Types
Internal
Only
Dialog Structure to
maintain Document Document Types are defined by a unique key for the Document
Partner
Types for Individual Type, a Description, Number Range, an indicator that permits
Processing and Mass Cross-Company postings within a document, an indicator to
Processing, show that no manual postings are permitted, and the Document
Use
respectively. Type Life for archiving.
 SAP AG 2004
SAP
SAP
The document type marked in the Not Manual field cannot be used for manual postings, and cannot
be specified as a document type for payment lots or returns lots. The marking of document types
Partner
Use
means that you can use these for certain programs, without:
• Finding manually posted documents between automatically posted ones during internal number
assignment
• Unsuccessful transfer of postings during external number assignment as the desired document
number has already been assigned for a manual posting.
Internal
Mark the document types for which you do not want to permit any manual postings.
The Cross-Company flag defines that account determination can take place on a cross-company
basis within a document. Cross-company means that there are business partner items with differing
Only
partner companies, or items with a partner company and items without a partner company, at the
same time. This means that the partner company for each document is not unique. The company
number defined in the contract account for each linked business partner can not be passed on to the
G/L item for the document.
If the partner company is to be passed on to all document lines, do not set the flag. Passing on the
partner company is required for consolidation purposes in particular, as the system requires the
information about the partner company for elimination postings. Set the flag for business
transactions for which account determination is to take place on a cross-company basis.
The Doc. life field defines the number of days for which an object to be archived must remain in the
system before it can be archived.
The Arch. life field defines the number of days for which the archive index must remain in the
system before it can be reorganized. According to the archiving object, an archive index can be
constructed with archived objects. It describes the archive in which you can find the object. You can
use this index for swift online access to the archive for object display, as long as the archive is still in
the file system.
© SAP AG FS315 2-6
Customizing: Maintain Number Ranges for Mass
Processing
Internal
Only
In mass processing, several number ranges are

Partner
also assigned to every possible document type.
Use
 SAP AG 2004
SAP
SAP
Number range (for mass postings) describes the key used to define a number range for number
assignment for documents in Contract Accounts Receivable and Payable, which is to be used for
Partner
Use
mass runs. The key for the number range (number range interval) for a mass document type must
start with a letter.
Multiple number ranges are assigned to every document type in question for mass processing. It is
this method that guarantees that processing of mass runs can take place with parallel running
Internal
processes. Every process reserves a number range for the duration of its activities. Assign number
ranges to the document types so that every parallel process can use its own number range.
Example: If you normally split a payment run into 5 parallel processes, at least 5 number ranges are
Only
to be assigned to the document types used.
You can assign the same number ranges to various document types.
© SAP AG FS315 2-7
Company Code
The inserted Company

Code serves as help for
entering documents or
line items that are to be
posted in the same
company code.
Internal
Only
Partner
Use
 SAP AG 2003
SAP
SAP
The company code entered is extended in every line item, in which no company code was entered.
The company code is used as input help for documents or line items that are to be posted in the same
Partner
Use
company code. In the user settings, you can define that posting does not take place on a cross-
company code basis. Users, for which this definition is made, must fill the Company Code field.
A company code represents the smallest organizational unit in external accounting for which
complete accounting can be mapped. This includes the entry of all events required for posting and
Internal
the creation of all notes for legal individual account closing, such as financial statements and profit
and loss calculations.
Only
© SAP AG FS315 2-8
Customizing: Edit, Copy, Delete, Check Company
Code
Within the category

Enterprise Structure
Æ Definition
Æ Financial Accounting
there is an activity to edit, copy, delete, and
check the company code.
Internal
Only
Partner
Use
 SAP AG 2004
SAP
SAP
In this step, you create your company codes. The company code is an organizational unit for
financial accounting, which groups the company from a financial accounting point of view. We
Partner
Use
recommend that you copy a company code from an existing company code. This has the advantage
of allowing you to copy many existing company code-specific definitions. If necessary, you can
change some data in each application. This is easier than creating a new company code.
Internal
Only
© SAP AG FS315 2-9
Customizing: Edit Company Code (Overview)
Internal
Only
Overview of existing company codes

shows the unique key (Company Code)
and the Company Name.
Partner
Use
 SAP AG 2003
SAP
SAP
If you only require one company code, you need to use the preset number 0001 for the
company code. This means that you reduce the number of tables that you have to set up. You
Partner
can copy a company code with a special Customizing function. This transfers company code-
Use
specific definitions for your new company code. You do not have to define the target company
code. This occurs automatically during the copy transaction.
SAP recommends the following procedure when copying company codes:
• Create your company codes. Use the template (company code 0001) provided by SAP as the
Internal
basis for this. SAP recommends that you use the “copy company code” function to create your
company codes.
Only
• Go to the “Edit company code data” step and change the name, description, address and
currency. Maintain the company code data that is not copied.
• Use the project IMG view to execute postprocessing for the automatically changed data. As the
created project view is retained, postprocessing can also take place at a later date.
You can also use the “Edit company code data” function for creation. However, in this case the
“Global Data” for the company code is not copied. If you create the company code with the “Copy”
function, most of the “Global Data” is copied.
© SAP AG FS315 2-10
Customizing: Edit Company Code (Details)
Button to add details to the address

of a selected company code.
Internal
Only
Partner
The company code is defined by a unique key (Company Code), the

Company Name, Currency, and Address Data such as City, Country,
Language, etc (through the button in the menu) .
Use
 SAP AG 2003
SAP
SAP
If you do not want to copy an existing company code, you can create a new one and make all the
settings yourself. You define a company code by specifying the following:
Partner
Use
• Company code key

A four-figure alphanumeric key can be selected as the company code key. This key identifies the
company code. It must be specified when posting a business transaction and when creating the
company code-specific master data, for example.
Internal
• Name of company code (name of company)

• Address data
Only
The address data is required for correspondence creation and printed on the evaluations, such as
the sales/purchase tax advance return.
• Country currency
Books must be kept in the country currency. This currency is also marked as the house currency
or company code currency. Amounts that are posted in the foreign currency are converted to the
house currency.
• Country key
You use the country key to specify which country is to be marked as domestic. All other
countries are interpreted as foreign by the system. This is important for business and payment
transactions, for example, as you have to choose between various forms for foreign payment
transactions. This setting also enables different address formatting for foreign correspondence.
• Language key
The system uses the language key to automatically determine texts in the country language. This
is require when issuing checks, for example.
© SAP AG FS315 2-11
Internal
Only

Partner
Use
 SAP AG 2004
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 2-12
Main / Subtransaction for the Line Item
Internal
Only
Partner
Specification of Main
and Subtransaction to
Use
create a line item.
 SAP AG 2003
SAP
SAP
Main and subtransactions fulfill three functions:
Partner
• They document the aspect of the business transaction or business process, which underlies the
Use
posting of the line item. An explanatory text is assigned to every main and subtransaction, and
this can be used for correspondence.
• Main transaction and subtransactions can influence automatic account determination for many
processes.
Internal
• An internal main transaction can be assigned to the main transaction, and an internal
subtransaction can be assigned to the subtransaction; the internal transactions control the
Only
procedure for application-specific processing programs.
The subtransaction differentiates the main transaction. If main and subtransactions are used in
your application area, enter the appropriate main and subtransaction during document entry.
The internal main transaction is used internally to determined the main transaction defined by the
customer. In conjunction with the subtransaction defined with the internal subtransaction, this
produces the actual posting procedure.
The internal subtransaction is used internally to determined the main transaction defined by the
customer. In conjunction with the main transaction defined with the internal main transaction, this
produces the actual posting procedure.
© SAP AG FS315 2-13
Customizing: Define, Parameterize, and Assign External
Transactions
Within the category

SAP Insurance
Æ Basic Functions
Æ Document
Æ Maintain Transactions SAP Insurance (FS-CD)
there are activities to define, parameterize, and
Internal
Only
assign external transactions.

Partner
Use
 SAP AG 2003
SAP
SAP
In this step, you define external main and subtransactions, meaning those that are relevant for your
company, and assign the parameters for document control to them (such as company code, product
Partner
group, statistical key, and so on). The determination of attributes for the item, controlling processing
Use
and account determination are set for the external main and subtransactions.
• SAP delivers a raft of transactions as standard, which are related 1:1 to the hard-coded internal
transactions. These transactions and their assignment present transactions that you can transfer
or adjust to your company-specific requirements.
Internal
Only
© SAP AG FS315 2-14
Customizing: Maintain External Main Transaction
Internal
Only
Dialog structure to
Partner
maintain and
parameterize
external Main and Main Transactions are defined by the Application Area (ApArea), a
Use
Subtransactions. unique key for the Main transaction (MTrans), and a Description.
 SAP AG 2003
SAP
SAP
The application area (ApArea) is noted in all important data areas in Contract Accounts Receivable
and Payable, to enable control of data processing on an application-specific basis (I stands for
Partner
Use
Insurance Company). This means that application-specific additional functions can be prepared, or
standard processing can be replaced by application-specific processing.
• Example: Application-specific algorithms are used during automatic assignment of incoming
payments to open items.
Internal
• Note: You can define the application area that is valid for you, in your user parameters or during
general selection for the application area.
Only
© SAP AG FS315 2-15
Customizing: Maintain External Subtransactions
Internal
Only
Partner
External Subtransactions are defined by a unique key (Subtrans.)

and a Description.
Use
 SAP AG 2003
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 2-16
Customizing: Parameterize External Transactions
Internal
Only
Partner
External Transactions are defined by the Company Code, Product Group, Item Category,
Category, Statistical Key and various indicators for the manual posting, payment
reporting, invoicing, dunning, effective interest determination, and 1099 reporting (only
Use
relevant for the US.)
 SAP AG 2003
SAP
SAP
The product group is an insurance-specific grouping term used to group multiple insurance types.
It is used as a criterion for the system to determine a reconciliation account for receivables or
Partner
Use
payables. You can use the product group to determine the dunning procedure and dunning procedure
type. If you enter a line item manually, you have to specify a product group. During automatic
posting data transfer, the product group is transferred from the insurance-specific operational system
and saved in the line items.
Internal
In addition to other criteria for open items, such as the account view category for the contract
account, the item category controls grouping in the payment program and the invoicing run. This
flag is not supported after Release 4.61, but is still available to avoid inconsistencies when
Only
upgrading.
The category in the broker report specifies that category for an item or line item. The following
categories are currently supported:
01 Premium, 02 Commission, 03 Claim, 05 Costs
The Stat. key key is used internally and determines what is to be done when posting and clearing
the line item.
The manual flag specifies whether manual posting is permitted.
During payment reporting, the premiums with debit entries are generated using the RFKKPD01
report each month. If the Payt Rep. indicator is set for a transaction, an open item posted with this
transaction is included in the totals update.
© SAP AG FS315 2-17
Setting the II flag means that line items with this main and subtransaction combination cannot
appear on one insurance invoice.
Example: In your company, installment plan agreements with policyholders are dealt with by
special correspondence. The installment plan items should not appear on the insurance invoice.
To achieve this, set the flag named above for the main and subtransaction combination for the
installment plan item.
If you set the CM flag, the subtransaction is not taken into account by the dunning program
(dunning proposal run, dunning activity run).
The EInt. flag specified whether the transaction is taken into account for effective interest
determination.
The 1099Rep flag describes a reportable transaction in 1099 reporting. This is only relevant for the
USA.
Internal
Only
Partner
Use
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 2-18
Customizing: Assign External Transactions
Internal
Only
Partner
Assignments of external transactions to internal transactions are defined by the
Use
application area (A), the internal Main and Subtransaction and its description
as well as the external Main and Subtransaction and its description.
 SAP AG 2003
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 2-19
Tips and Tricks to Parameterize External Main and
Subtransactions (1/2)
The transaction SM30 offers direct

access to maintain table views.
The table TKKVHVTV describes a
customizing view to maintain
parameters of all external Main
and Subtransactions.
Internal
Only
Partner
Use
 SAP AG 2004
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 2-20
Tips and Tricks to Parameterize External Main and
Subtransactions (2/2)
Internal
Only
The customizing view

TKKVHVTV offers an
overview of all parameters to
maintain external Main and
Subtransactions.
Partner
Use
 SAP AG 2004
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 2-21
Internal
Only

Partner
Use
 SAP AG 2004
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 2-22
Customizing: Define Accounts for Receivables/Payables
and Revenues/Expenses
Within the category

SAP Insurance
Æ Basic Functions
Æ Document
Æ Define Account Assignments for Automatic Postings
Æ Automatic G/L Account Determination
there are activities to define accounts for
Internal
Only
receivables/payables and revenues/expenses.

Partner
Use
 SAP AG 2003
SAP
SAP
In the following steps, you define the numbers for G/L accounts that the system requires to be able
to create line items automatically when entering a document, or when clearing open items. These
Partner
Use
include the following transactions: Sales/purchase tax, discount, rate differences, smaller payment
differences (unauthorized deductions within tolerance limits), charges revenues and clearing
postings. Note that you can differentiate account determination by using key fields. More accounts
are to be defined for the individual business transactions (such as payments or returns). These are
noted in the appropriate sections.
Internal
In the Define Accounts for Receivables/Payables IMG activity, you define the reconciliation
accounts to be used to post receivables and payables. When posting to a contract account, the
Only
relevant reconciliation account is automatically determined and posted to, using document account
assignments. The account number for the reconciliation account is stored in the subledger
accounting document.
In the Define Accounts for Revenue/Expense IMG activity, you define the G/L accounts to be used
to post revenues and expenses. When posting to a contract account, the relevant G/L account is
automatically determined and posted to, using document account assignments. The account number
for the G/L account is stored in the subledger accounting document.
A reconciliation account is a G/L account on which the transactions for subledger accounting,
such as subledger debtors, creditors and assets, are posted. Normally, multiple accounts in subledger
accounting refer to a collective reconciliation account. This means that the subledger display in G/L
accounting is achieved, from a financial point of view.
Example: Foreign debtors can refer to a collective reconciliation account.
The G/L account is a structure for including value movements in a company code, referring to a
G/L account item in an account plan. The G/L account includes transaction figures, in which value
movements for a posting period are presented as total values, for reporting purposes in the G/L.
© SAP AG FS315 2-23
Customizing: Maintain Account Determination for
Receivables/Payables
Buttons to change
chart of accounts and
to simulate account
determination.
Internal
Only
A G/L account is assigned to the

combination of product group (PG), Main
Partner
transaction (MTrans), and Subtransaction

(STrans).
Use
 SAP AG 2003
SAP
SAP
The product group (PG) is an insurance-specific grouping term used to group multiple insurance
types. It is used as a criterion for the system to determine a reconciliation account (= posting
Partner
Use
account) for receivables or payables. You can use the product group to determine the dunning
procedure and dunning procedure type. If you enter a line item manually, you have to specify a
product group. During automatic posting data transfer, the product group is transferred from the
insurance-specific operational system and saved in the line items.
Internal
Example: The following types of insurance can be grouped in the Life Insurance Product Group:
• Capital-sum life insurance
• Term life insurance
Only
• Additional occupational disability insurance
© SAP AG FS315 2-24
Customizing: Key Selection for Account Determination
Internal
Only
Partner
Changing key selection necessitates post-

processing using the program
Use
SAPRGEN_CD.
 SAP AG 2004
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 2-25
Program SAPRGEN_CD
Internal
Only
The program SAPRGEN_CD must always be called (through transaction

SA38), if key fields for the automatic G/L account determination have changed.
Partner
Use
 SAP AG 2003
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 2-26
G/L Account Determination (Receivables /
Payables)
After assigning
external Main
Internal
Only
and
Subtransaction
s,
a specific
reconciliation
account is
Partner
posted here
Æ see account
determination.
Use
 SAP AG 2004
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 2-27
Revenue/Expense – Overview
Buttons to change
chart of accounts and
to simulate account
determination.
Internal
Only
The overview only shows insurance type (IType),

Main and Subtransaction (MTrans, STrans).
Partner
Use
 SAP AG 2003
SAP
SAP
The insurance type (IType) is a central, insurance-specific additional account assignment field.
Together with the other additional insurance account assignments and the SAP standard account
Partner
Use
assignments, it forms the basis for German statutory reporting to the German Federal Supervisory
Office for Insurance Associations (BAV). Dependent on the line of business (life insurance, health
insurance, non-life insurance), enter tariffs, policyholder profit-sharing schemes or in-force business
groups as the type of insurance. In Collections/Disbursements for insurance, the additional account
assignment fields are stored as document info when posting a document. They are transferred to a
Internal
Special Ledger when transferring into the G/L. They are available there for evaluations; for
example, if an accountant is looking for the information required for a report to the BAV.
Only
Example for charges: A returns charge that has been posted (“returns charge 1”) has the internal
main/subtransaction “0010/0130” (hard-coded) fixed by SAP in FS-CD. The external
main/subtransaction “5010/0130” is assigned to this internal main/subtransaction, for example, and
maintained in Customizing. Account determination for revenues/expenses is to be defined for the
external main/subtransaction.
© SAP AG FS315 2-28
Revenue/Expense – Detail Screen
Internal
Only
Partner
In the detail screen, the G/L account can be assigned.
Use
 SAP AG 2004
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 2-29
G/L Account Determination (Revenue / Expense)
After assigning
external Main
Internal
Only
and
Subtransaction
s,
a specific G/L
account
account is
Partner
posted here
Æ see account
determination.
Use
 SAP AG 2004
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 2-30
Tips and Tricks for Account Determination
The transaction FQC0 offers
Internal
Only
direct access to maintain the

account determination for
revenue/expense by
specifying the posting area.
Partner
Use
 SAP AG 2004
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 2-31
Product Group
The Product Group

specifies a grouping term
under which several
types of insurances are
summarized.
The Product Group
helps to group
documents or line items
that are posted within the
same company code.
Internal
Only
Partner
Use
 SAP AG 2003
SAP
SAP
The product group is an insurance-specific grouping term used to group multiple insurance types. It
is used as a criterion for the system to determine a reconciliation account for receivables or payables.
Partner
You can use the product group to determine the dunning procedure and dunning procedure type. If
Use
you enter a line item manually, you have to specify a product group. During automatic posting data
transfer, the product group is transferred from the insurance-specific operational system and saved in
the line items.
Example: The following types of insurance can be grouped in the Life Insurance Product Group:
Internal

Only
© SAP AG FS315 2-32
Customizing: Define Product Groups
Within the category

SAP Insurance
Æ Basic Functions
Internal
Only
Æ Document
there is an activity to define product groups.
Partner
Use
 SAP AG 2003
SAP
SAP
In this step, you define product groups. The product group is a criterion for determining the
receivables and payables account. You can assign dunning procedure types to the product group,
Partner
which are used to determine dunning procedures and map dunning grouping categories.
Use
• Note: From Release 4-62, you can choose whether the dunning grouping categories are active
for the product group or for the dunning variant. We recommend that you set the parameters for
the dunning variant, as the settings for the product group cannot be developed any further.
Internal
• Recommendation: If you use the product group, to determine the dunning procedure for an item,
you need you define your product groups with reference to this special usage.
Only
© SAP AG FS315 2-33
Customizing: Maintain Product Groups
Internal
Only
Product groups are defined by

company code (CoCd) and
product group (PG) as the
unique key as well as the
product group description and
a field to define the type of
Partner
dunning procedure (P).
Use
 SAP AG 2003
SAP
SAP
The V field describes a key used to define the variants for executing the dunning procedure. The
dunning procedure types are defined dependent on the product group. A set dunning procedure type
Partner
Use
is assigned to every product group. The dunning procedure types are also linked to dunning
groupings that are fixed in the system. In conjunction with the product group, the dunning procedure
type defines:
• Whether items due for dunning (and open items) for a contract are dunned separately, or together
Internal
in one dunning group

• Which open items, or items due for dunning, are grouped together.
Only
In individual dunning, a dunning procedure is opened for each item due for dunning.
In contract dunning, only the oldest item for a contract is dunned. Only when this dunning
procedure has been concluded is a new procedure opened for the next oldest document. It starts with
the dunning level that is appropriate, dependent on the arrears period.
In collective dunning, all items due for dunning, and additional items that become due during the
procedure runtime, are dunned together. The item that triggers the dunning procedure controls how
the procedure is run. If initial premiums and subsequent premiums are open at the same time, the
initial premium is dunned first. Subsequent premiums are only dunned after the initial premium
dunning procedure has ended.
Note: From Release 4-62, you can choose whether the dunning parameters are active for the product
group or for the dunning variant. We recommend that you set the parameters for the dunning variant,
as the settings for the product group cannot be developed any further.
© SAP AG FS315 2-34
Internal
Only

Partner
Use
 SAP AG 2004
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 2-35
List Type
Internal
Only
Selection of the List Type

decides about the account
display.
Partner
Use
 SAP AG 2003
SAP
SAP
The list category for account balance display describes the key used to define which type of item is
selected for account balance display (such as open items or down payment requests). The list
Partner
Use
category enables you to save selections that are used a lot under one key, and use them with this
simple selection. If you do not use list categories to select the items, you can:
• Choose Standard to select the standard option, meaning all, non-statistical items
• Choose Detail to specifically determine item selection.
Internal
You can change the selection using Detail even if you are using a list category. This change is not
saved, but is only used for the current display.
Only
© SAP AG FS315 2-36
Customizing: Define List Category
Within the category

SAP Insurance
Æ Basic Functions
Æ Account Balance Display
Internal
Only
there is an activity to define the list category.

Partner
Use
 SAP AG 2003
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 2-37
Customizing: Maintain List Category (Overview)
Internal
Only
A List Category (List Type) is defined by a unique key and a

describing Text.
Partner
Use
 SAP AG 2003
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 2-38
Customizing: Maintain List Category (Details)
Internal
Only
Partner
Detailed specification of the list category (list type) through selection of

various parameters (within the areas Item Selection, Selection by
Use
Installment Plans, and Statistical Items).
 SAP AG 2003
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 2-39
Line Layout
Selection of the Line

Layout for the Account
Display.
Internal
Only
Partner
Use
 SAP AG 2003
SAP
SAP
The line layout field is a key for identifying a line layout variant. You can define line layout
variants for transactions assigned by SAP. In a variant, you define:
Partner
Use
• Which fields are display for a line item or a totals record.

• How the fields are arranged within the possible line length of 79 characters or 132 characters (for
account balance display).
Internal
Variants are defined in Contract Accounts Receivable and Payable for the following transactions:
• Open items
• Posting totals
Only
• Account balance display
Within Controlling (CO), a totals record is the cumulated presentation of all posted items for all
periods in a business year. Within Financial Accounting (FI), it is the total for all line items posted
to a reconciliation key, which can be grouped together using the criteria for G/L accounting and
downstream applications. Line items can be grouped together if they match in terms of the following
criteria:
• Company code, business area, posting date, debit/credit flag, G/L account number, currency and
value date for G/L account and cost center, profit center, order number, project, application-
specific fields for downstream application
© SAP AG FS315 2-40
Customizing: Define Line Layout Variants for Account
Balance
Within the category

SAP Insurance
Æ Basic Functions
Æ Account Balance Display
Internal
Only
there is an activity to define line layout variants

for account balance.
Partner
Use
 SAP AG 2003
SAP
SAP
In this step, you define your line layout variants for the account balance display.
• Note: You can define totals variants. You can specify follow-up variants for every totals variant,
Partner
Use
to present variants that have been reconciled with one another in a hierarchy. You define both
with the attributes for a variant. Line layout variants are included in the SAP standard delivery.
The assignment of line layout variants can take places for one of the following categories:
• Individual item variants (the items are listed individually for individual item variants)
Internal
• Totals variants (summarization (cumulation) takes place for every field in the variant with totals
variants, meaning that totals are displayed, for which there can be a number of items.
Only
A follow-up variant defines a line layout variant from the totals variant category. This means that it
is possible to map a hierarchy as follows:
Level 1: Partner/contract variant: VS1
Level 2: Partner/contract/due date variant: VS2
Level 3: Partner/contract/due date/document variant: VS3
© SAP AG FS315 2-41
Customizing: Maintain Line Layout Variants for Account
Balance
Internal
Only
Partner
Line layout variants are defined by a unique key

(LLt), the type of the variant (Typ), the subsequent
Dialog structure to variant (Sub), an indicator for the sorting (Desc),
Use
maintain Variants and the Name of the variant, and the Text for the output
their Variant Fields. of the columns.
 SAP AG 2003
SAP
SAP
The Category field determines the assignment of the line layout variant to one of the following
categories:
Partner
Use
• Individual item variants

• Totals variants
Internal
Only
© SAP AG FS315 2-42
Customizing: Maintain Variant Fields of a Line Layout
Variant for Account Balance
Internal
Only
Partner
Variant Fields are defined by the column number (CM), the Field Name and Name,
Offset, Display Length, Number of Decimals (Dec), Distance from previous field, data
Use
type (DType), Reference Table and Field, Table, and conversion routine (Conve).
 SAP AG 2003
SAP
SAP
The column number (CM) is used to define the output item.
Partner
The field name field defines the field names used internally in the SAP system (dictionary).
Use
The Offset field specifies the point within the field from which the contents are to be displayed.
Counting for this point starts from zero. If the complete field contents are displayed, you have to
enter “0” as offset or leave the field empty.
Internal
Length determines the display length to be used for outputting the contents of a field. This gives
you the option of outputting shortened fields, allowing you to use more fields in a variant. If a field
is not to be output in its full length, enter the number of characters that are to be output, calculated
Only
from the first character of the field. If the entire field length is to be output, do not change the field
length entered by the system.
Dec. determines the number of decimal places that are to be displayed in the field.
The Dist. field determines the distance of the field from the previous field. The number of characters
specified here is released for display. Normally, the distance is specified with “1”. This means that
every two fields are separated by a space.
The Dtyp field describes the data category or the data format for the user interface.
For fields that contain currency amounts (CURR data category) or quantity specifications (QUAN
data category), a reference table must be specified. This must contain a field (reference field) with
the currency key format (CUKY data format) or the format for quantity units (UNIT data category).
The assignment of the field to the reference field is only created by a program during the runtime.
© SAP AG FS315 2-43
The Table field specifies where the fields that are displayed in the list come from. Specifications,
dependent on the list class, include:
Class Name Table
M Acct balance display FKKEPOS
O Open items FKKCL
S Posting totals DFKKSUM
When converting the contents of a screen field from display format to the internal SAP format (or
the other way), as well as when outputting with the ABAP command WRITE, conversion takes
place dependent on the data category for the field. If this standard conversion is not suitable, you can
override it by specifying a conversion routine in the underlying domain. A conversion routine is
identified by a five-character name and is stored as a group of two function modules. The function
modules have a fixed naming convention. The following function modules are assigned to the
conversion routine xxxxx:
Internal
Only
• CONVERSION_EXIT_xxxxx_INPUT
• CONVERSION_EXIT_xxxxx_OUTPUT
The INPUT module executes the conversion from display format back to the internal format, and the
OUTPUT module executes the conversion from internal format to the display format.
Partner
If a screen field refers to a domain with a conversion routine, this routine is automatically executed
every time you make an entry in this screen field, or when you display values using this screen field.
Use
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 2-44
Account Display: Result of Customizing
Internal
Only
Partner
Use
 SAP AG 2003
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 2-45
Exercises
Chapter: Postings and Documents

Topic: Customizing

• Define new document types and number ranges
• Create main and subtransactions
• Set up account determination
Internal
Only
• Maintain grouping and summarization categories
ABC Insurance pays a bonus to those customers that have not made a claim in
the last 3 years. This bonus payment is to be visible in
Partner
Collections/Disbursements.
The policy management system for ABC Insurance delivers the premiums,
Use
discounts and stamp amounts separately to the Collections/Disbursements
system. However, just one premium is to be visible for each business
transaction in the Collections/Disbursements system.
SAP
SAP
Partner
2-1 You need to be able to make special bonus postings for the ABC policies. These are to
Use
receive their own numbers.

2-1-1 For this, define a new document type called “ABC Bonus##” and assign an
internal number range to it. The new document type is not to be assigned to an
Internal
account on a cross-company basis, but you must be able to post it manually.
Only
2-2 You also need to be able to control the processes for the ABC partners in FS-CD.
2-2-1 Create the following main and subtransactions for the bonus postings:
Prefix Name Clearing Restriction

HVOR 90## ABC##
G
TVORG 01## ABC Bonus##
TVORG 02## ABC Dunning Statistical, cannot be posted manually
Charge## (X)
© SAP AG FS315 2-46
2-2-2 Assign your main and subtransactions to item category “01”. Also use the
following data:
Company code: V001
Product group: Blank
Item category: 01
2-2-3 You also have assign your new main and subtransactions to an expense account
and a payables account respectively. Use the following accounts for this:
Account plan: VKR

Payables account: 130 000
Expense account: 301 000
Contract account cat.: ##
Internal
Only
2-3 The policy management system should also deduct postings in FS-CD. To do this, it
creates a file with posting lines, which have account assignment for policies. The policy
management system also generates a reference, which keeps together postings from one
business case.
Partner
2-3-1 You now have to set grouping and summarization so that one document is
produced for each business case in FS-CD. In the subledger (business partner
Use
item) the product group used for posting is not relevant. Summarize documents
with differing product group account assignments, so that product groups
(PRGRP) are grouped together. Maintain the grouping so that one document is
created for each reference document number (XBLNR). Create a new item
SAP
SAP
grouping category ## called “ABC Grouping Category ##” and a new item
summarization category ## called “ABC Summarization Category ##”.
Partner
Use
Assign grouping category ## and summarization category ## to your created

insurance objects.
Internal
2-4 Test your settings by posting a bonus to the ABC policy. Simulate postings from the
Only
policy management system with the VKTT transaction.
Assign the “Dummy Payment Plan” payment option key to your created
insurance objects on the “Payment Plan” tab page.
© SAP AG FS315 2-47
Correspondence - Orientation
Overview of Topics
1. Master Data
3. Correspondence
Internal
Only
5. Payment Program
Partner
6. Returns
7. Installment Plan
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 3-1
Chapter 3: Correspondence
Correspondence Overview
Master Data and Customizing Control Parameters
Internal
Only
Dunning
Introduction to Dunning Procedure
Partner
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 3-2
Introduction to Correspondence
z All printed evaluations, reports, and documents that are

sent to business partners, are considered as
correspondence.
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 3-3
Correspondence Creation: Overview
Correspondence
Event-Controlled by Business
Printing
Transaction
Correspondence Request
CT 0003 Event 705
Dunning KA 0003 Event 705
CT 0003 Event 705

Returns KA 0001 Event 701
Correspondence
Container FC: FI_CA_Dunning
Int. Calc. KA 0007 Event 713
FC: FI_CA_Refusal
Internal
Only
Contract Account
Inst. Plan KA 0005 Event 709
Get Print
additional data Workbench
Periodic with Correspondence Run
Partner
Reference Dunning
Invoicing V004 Event 704
Data Data
Use
Customer MDO
M
Acct Stat. Reminder
Customer MDO Correspondence Request

Invoice
Selection CT: Correspondence type
FC: Form class
SAP
SAP
 SAP AG 2004
Partner
Use
Correspondence creation process:

Creation of the correspondence request by business transaction or correspondence run
Save reference data in the correspondence container
Internal
Select correspondence data from the correspondence container and prepare for printing with the
correspondence print run
Only
Print formatting for correspondence using SAPscript, Print Workbench, or using the raw data interface
with an external printing system
Correspondence data can be created from different application programs, or by the correspondence
creation program.
The correspondence creation program creates specific correspondence types, white an application only
sees correspondence as part of the process.
Correspondence data is stored in an abstract form. Various correspondence types - dunning data, returns
data, account balances and so on - can therefore be stored in the same place.
In most cases, the data container does not save all data that was created from an application, but only the
key data, which then refers back to the original data.
Centrally stored correspondence data can be used for various purposes. Examples are sorting, archiving,
repeat printing or test printing.
© SAP AG FS315 3-4
Correspondence Container: Concept
Application program 1
.
. Correspondence Container
.
Application program n
Internal
Only
.
. One report for printing
.
Partner
Corr. setting Every application program with

prog.1............n
print output loads the
Use
correspondence container
SAP
SAP
 SAP AG 2003
Partner
Use
The correspondence container contains tables. The main table is DFKKCOH. Every entry in this table
represents an object, which can be sent to a business partner.
The print run is a separate step within correspondence creation. You can select all data in the
correspondence container for printing.
Internal
You are advised to execute printing close to correspondence creation. If the period between the two runs
is too great, it is possible for a customer to be dunned even though he/she has paid their invoice in the
Only
meantime.
© SAP AG FS315 3-5
Control Parameter: Master Data (1)
Business partner role

Standard address type
(contract partner)
Correspondence types
Address types
1 1
Internal
Only
1 1
or
n 1
Partner
Address usage (defined

for business partner) Address for business
n m partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
A standard address is assigned to every business partner.

Address types are defined in Customizing for the business partner and assigned to correspondence types.
You also define whether one or more addresses can be used for each address type.
Internal
For example, this can be used to send dunning notices to a dunning address, and invoices to an invoicing
address for a business partner.
Only
© SAP AG FS315 3-6
Control Parameter: Master Data (2)
Control parameters can

be defined for the
contract account or the
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
The following parameters are defined on contract account level or insurance object level for
correspondence:
• Correspondence variant -> Definition for each correspondence type: Dispatch control, periodicity
and charges schedule
Internal
• Correspondence to alternative / additional partner: Alternative correspondence recipient / activity can

be specified (1st line), or also recipients for individual correspondence types
Only
• Correspondence activity: Defined activity that determines the calculation formula to be used A
function module is assigned to the activity in Customizing.
The following parameters are defined for the contract account or insurance object for invoicing:
• Invoicing type: Type of invoice
• Base date for invoicing frequency (example: The insurance specific main due date for a contract
account is specified as 24/04/99. Monthly invoicing is defined in the correspondence variant for the
account. The first invoice in a year will then contain all items up to a due date of 23/01, and the
second invoice will contain all items up to a due date of 23/02, and so on.)
© SAP AG FS315 3-7
Control Parameter: Customizing
Correspondence Type
Definition
A correspondence type groups correspondence of the
same category. Account statements and dunning notices
are examples of correspondence types.
Internal
Only
Use
Each correspondence type contains specifications as to
which data can be temporarily stored in the
Partner
Correspondence Container when creating

correspondence. It is this data the system accesses
Use
when you carry out a correspondence print run.
SAP
SAP
 SAP AG 2003
Partner
Use
You can define your own correspondence types in Customizing.

• The account statement is an example of a correspondence type whose formatting can not be
influenced by the user. If, for example, the end user requests an account statement for the contract
account, he/she receives a printout of all items that were posted against this account.
Internal
• However, the account information correspondence type is directly influenced by the end user. This
means that the user can use certain selection criteria to specify that only those items, which were
Only
posted against contract account ABC and which have an amount between 1000 and 10,000 EUR, are
displayed.
• A quotation is a form, which can be sent to a business partner or a potential business partner.
• The tax office certificate can only be created once a year, and therefore it is normally created at year-
end. The certificate lists all premiums, whose due date lies in the preceding year and which were paid
in this year.
© SAP AG FS315 3-8
Customizing: Correspondence Types
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 3-9
Customizing: Correspondence Types
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Recipient control is set on correspondence type level. This means that you can define an alternative
recipient as being invalid for a correspondence type, for example.
Every correspondence type is linked to two events: A 'print' event (function module, which is required to
print a correspondence request after reading the correspondence container), and a 'generation/creation'
Internal
event (function module, which is required to create a correspondence request).

You also define the application area in which a correspondence type is to be used, and whether the
Only
correspondence type is event-controlled and/or period controlled.
© SAP AG FS315 3-10
Customizing: Define Correspondence Types
Customizing activities for correspondence types can be
Internal
Only
maintained in SAP Insurance Æ

Collections/Disbursements Æ Basic Functions Æ
Correspondence.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 3-11
Correspondence Variant
Internal
Only
A correspondence
variant groups together
correspondence types for
periodic correspondence.
Partner
Use
Periodic correspondence must be assigned to a correspondence variant in
Customizing.
SAP
SAP
 SAP AG 2003
Partner
Use
The correspondence variant is the key used to group correspondence types for controlling periodic
correspondence. Control parameters, such as an interval used to determine the execution frequency, and
a charges schedule are defined for each correspondence type. The control parameters defined in a
correspondence variant are evaluated when executing the correspondence run, and applied accordingly.
Internal
• Correspondence variants can be assigned to contract accounts on the contract account/business

partner level, or on business partner/insurance object level (using the Correspondence Parameters
Active for Insurance Policy flag in the upper part of the Correspondence tab page).
Only
The correspondence type is the key used to define a correspondence type (such as returns notification
or account statement) with the associated control attributes. Correspondence types can be assigned to
correspondence variants. You can select the correspondence to be taken into account by specifying the
correspondence types for correspondence creation.
The charges schedule is the key used to define a schedule for determining charges, which are normally
levied in conjunction with the creation of correspondence and dunning notices.
© SAP AG FS315 3-12
Customizing: Configure Correspondence Variants
Customizing activities for correspondence
Internal
Only
variants can be maintained in SAP

Insurance Æ Collections /Disbursements
Æ Basic Functions Æ Correspondence.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 3-13
Customizing: Change Correspondence Variants
Various buttons to
change, copy, and
delete existing
entries, and to
add new ones.
Internal
Only
Various correspondent Entries for correspondence variants are

types can be assigned defined by an unambiguous key
to a selected (Variant) and a describing text
correspondent variant. (Correspondence Variant).
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 3-14
Customizing: Change Correspondences
Various
buttons to
change, copy,
and delete
existing
entries, and to
add new
ones.
Internal
Only
Partner
Entries for correspondence types are defined by an unambiguous key (CTyp),

the description of the correspondence type, the correspondence interval
Use
(Periods), the dispatch control (DispContrl), and a charges scheme (C..).
SAP
SAP
 SAP AG 2003
Partner
Use
The Periodicity field determines the interval in which correspondence is to be created in the
correspondence run. You can use the periodicity to define the time periods to be taken into account
when creating correspondence. The system generates correspondence for a correspondence type when
executing a program run for correspondence creation, if (a) the interval defined in Customizing for this
Internal
correspondence type has passed since the last date on which correspondence was generated, and (b) the
period for the next due interval is selected in the program parameters.
Dispatch Control is used for flexible control in batch processing to send a in various ways, and on more
Only
than one occasion. Dispatch control contains definitions for various pieces of information: Transmission
method (letter, fax, email), number of copies, archiving mode (print only, print and archive, archive
only), RDI flag (RDI spool, RDI IDOC, no RDI, SAPscript form decides), copy flag.
The charges schedule is the key used to define a schedule for determining charges, which are normally
levied in conjunction with the creation of correspondence and dunning notices. Every charges schedule
can manage the charge data for a maximum of three charge categories (charge categories are
subcategories for a charges schedule, such as processing charge, payment form charge or postage
charge). You can create charge scales that are specific to currency and creditworthiness for each
combination of charge schema and charge type. These can then be used to determine charges. In
creating these scales, you specify how the system is to post the separate scaled charges, that is, whether
they are to be posted statistically or to the general ledger.
• Example – Charges for Correspondence: When defining a correspondence variant, a charges
schedule, with associated charge categories, can be assigned to every associated correspondence
© SAP AG FS315 3-15
type. When you execute the correspondence creation run, the system automatically posts the charge
defined in the charges schedule for every correspondence type, for each charge category.
• Example – Dunning Charges: When configuring a dunning procedure, a charges schedule, with
associated charge categories, can be assigned to every dunning level. When you execute the dunning
print, the system automatically posts the dunning charge defined in the charge schedule for every
charge type in a dunning level.
Internal
Only
Partner
Use
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 3-16
Invoicing Type
The invoicing type is a key in

which types of hard copy and
associated control characteristics
for invoicing are grouped
together.
Internal
Only
Billing Lock: Indicates a lock

Partner
reason for a business process,

e.g. dunning activity.
Use
The invoicing type is the counterpart to the correspondence variant in
invoicing.
SAP
SAP
 SAP AG 2003
Partner
Use
You assign an invoicing type to a correspondence variant that you configured and define the
combination of correspondence variant and invoicing type in the contract account or insurance object
master data. When the invoicing run is executed, the control characteristics for a contract account
defined in the invoicing type are evaluated and the associated printed correspondence information is sent
Internal
to an external text processing system, using a print interface. You can:

• Include individual payment methods, or all payment methods, in invoicing
Only
• Include invoiced open items in invoicing
• Include statistical items in invoicing
• Include deferred items in invoicing
• Ignore negative document line items
• Accept negative invoice totals
• Explain partial clearings by using payment plan items.
• Invoicing types include invoices, transfer media, and so on.
Collective invoice: Grouping all open items whose master data refers to one collective invoice
account. You can only clear a collective invoice by using the payment form reference. If the
amount received does not exactly match the amount of the collective invoice, the incoming
payment is transferred to a clarification worklist.
© SAP AG FS315 3-17
Customizing: Define Invoicing Types
Customizing activities for invoicing types

can be maintained in SAP Insurance Æ
Collections/Disbursements Æ Business
Transactions Æ Invoicing (FS-CD).
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
In Customizing, every invoicing type is linked to a contract account category. In the contract account,
you can only define invoicing types that are assigned to the appropriate contract account category.
Internal
Only
© SAP AG FS315 3-18
Customizing: Change Invoicing Types
Various buttons to
change, copy,
and delete
existing entries,
and to add new
ones.
Internal
Only
Partner
Use
Entries for invoicing types are defined by a contract account category (C..), the invoicing
type and its description (I... and InvTypeDes), various flags, an application form (Appl.
form), and the form for credit memos (CredMemFrm).
SAP
SAP
 SAP AG 2003
Partner
Use
category, and receives certain properties.
The application form contains the flow logic for a print program, in hierarchy form. Every application
Internal
form is based on a form class, which contains the data hierarchy and is comparable to a logical database.
A print program, in the form of a function module, is generated from the application form.
Only
The application form for credits is used if the total amount (in this case, for credits to the policyholder)
is negative. This form is only used if the flag for credit creation is defined for the invoicing type.
© SAP AG FS315 3-19
Internal
Only
Dunning
Partner
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 3-20
Introduction to Dunning
z Fulfillment of the legal requirements for the

policyholder
External z Achieving right of insurer to deny claims or
Effect benefits
z Information to third-party participants (such
Internal
Only
as pledgee, processing clerk, auto registration

center, and so on)
z Triggering subsequent processing in the
Internal operational systems (policy management,
Partner
Effect commissions, and so on)

z Internal documentation for executed dunning
Use
procedures in the history
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 3-21
The dunning process FS-CD:
Dunning Item Dunning

Open item due for dunning activities run
proposal run
Customizing:
No payment:
Read dunning history
Next dunning level
master data
Internal
Only
Activities:
Correspondence
Notes to clerk
Charges
Incoming payment, Interest
Dunning end run
master data change
Partner
Entry in dunning
history for Entry in dunning
Create installment plan,
history for
Use
ended manual ending in
dunning current
dunning history
procedure dunning procedure
SAP
SAP
 SAP AG 2004
Partner
Use
An open item is due for dunning if the due date for net payment, added to the days in arrears defined in
the Implementation Guide, lies before the date of issue for the dunning run, and if no dunning lock is
entered in the master data.
To determine the dunning level for an item that is due for dunning, the dunning proposal run evaluates
Internal
the insurance dunning history.

The dunning proposal run delivers the input for the dunning activity run. The dunning activity run
Only
executes the activities for an insurance policy that is suitable for dunning, and calculates charges and
interest.
All dunning-relevant data from a dunning procedure is stored in the insurance dunning history.
If the policyholder does not react to a dunning notice, the item due for dunning is taken from the
dunning proposal run and moves to the next dunning level, after the days between two dunning levels
have expired, as defined in the dunning frequency.
A dunning procedure is ended automatically if an installment plan is created.
The end of the dunning procedure can be set manually, in the insurance dunning history.
A dunning procedure is ended by the dunning end run after payment receipt, or after a change to the
master data (such as conversion of payment method or change of dunning variant).
© SAP AG FS315 3-22
Dunning structure and terms in FS-CD:
Dunning Variant 1a
Life insurance,
individual dunning grouping cat.
Dunning Variant 1b
Life insurance,
collective dunning grouping cat. Dunning Level 1
Reminder
Dunning Procedure 01
Life/initial premium Dunning Level 2
Internal
Only
Dunning notice
Dunning Procedure 02
Life/subsequent premium Dunning Level 2
Repeated dunning Activities
Dunning letter,
Partner
note to processing clerk
Charges and Interest
Use
...
SAP
SAP
 SAP AG 2004
Partner
Use
The dunning variant is entered for the insurance object or the contract account. In Customizing, a
definition is made for every dunning variant to see whether every item in an insurance relationship is
dunned, or all items together (individual and collective dunning grouping categories).
A dunning variant can include multiple dunning procedures.
Internal
A dunning procedure consists of a user-defined number of dunning levels.

Set activities, interest rates, charges levels, and so on can be assigned to every dunning level. Days in
Only
arrears are used to define how many days after the due date for an item it takes to reach a dunning level.
The time between two dunning levels is defined by the dunning frequency.
© SAP AG FS315 3-23
Charges schedule – charge category - dunning charge
Charges Schedule
Groups charge categories and charges
Max. 3
Internal
Only
Dunning Charge Category

Such as processing charge, postage
1:n
Partner
Dunning Charge
Use
Absolute amount or percentage rate
SAP
SAP
 SAP AG 2004
Partner
Use
You can combine up to three different dunning charge types in a dunning charges schedule. However, a
charges schedule can only contain one or two charge categories.
• For example, you can define dunning charges schedule "M2", and assign charge categories "01"
(processing charge) and "02" (charges for payment transactions) to it.
Internal
Dunning charges schedules, dunning charge categories and dunning charges are set in the
Implementation Guide. Choose SAP Insurance -> Collections/Disbursements -> Business Transactions
Only
-> Interest Calculation -> Balance Interest Calculation.
© SAP AG FS315 3-24
Determining the dunning procedure:
Document Header
BP item 1 G/L item 1
BP item 2 G/L item 2

… …
BP item n G/L item n
Parameters active? Company code
Internal
Only
Posting group
Dunning Main and subtransaction
Procedure
Contract Insurance
Partner
account-partner object-partner
relationship relationship Customizing: Dunning
procedure
Use
determination (posting
Dunning area V202)
variant?
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 3-25
Control Parameters: Master Data
Control parameters can

be defined for the
Internal
Only
Partner
The dunning variant

determines the
selection of the
Use
dunning procedure.
SAP
SAP
 SAP AG 2003
Partner
Use
A dunning variant contains the dunning procedures relevant for the items belonging to a contract or
contract account. This generally includes at least an initial premium and a renewal premium procedure.
In the master data for the insurance object or contract account, you define a dunning variant that
identifies the relevant dunning procedure in the dunning proposal run for the items that belong to a
Internal
contract or contract account.

In financial accounting, the dunning procedure defines the procedure that determines how business
partners can be dunned. The following are defined for a dunning procedure:
Only
• Number of dunning levels
• Dunning frequency
• Amount limits
• Dunning texts
• The dunning procedure ensures that the items due for dunning are dunned during execution of the
dunning program, as specified in the dunning variant settings, and that the dunning data is stored in
the dunning history. In order to ensure that the program can identify the dunning procedures relevant
for the items due for dunning, assign the key for the desired dunning procedure online (or during
preparations for data transfer) – either on contract account level or on the level of the individual line
items in the document.
• Within SAP Insurance, the dunning procedure defines the procedure that determines how business
partners can be dunned. The number of dunning levels, the dunning frequency, the amount limits and
the dunning activities are defined for a procedure.
© SAP AG FS315 3-26
Customizing: Define Dunning Variants
Internal
Only
Dunning variants can be defined in

SAP Insurance Æ
Transactions Æ Dunning Notices.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 3-27
Customizing: Change Dunning Variants
Various buttons to
change, copy, and
delete existing
entries, and to add
new ones.
Internal
Only
Entries for dunning variants are defined by an unambiguous key

(DunningVar), a describing text, the grouping category for dunning
notices (G..), and various flags.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
The dunning grouping category defines the key used to define criteria (data fields) that are used to
group items due for dunning when executing a dunning run. The following dunning grouping
categories are delivered as standard for the insurance application area:
• 01: Grouping for individual dunning
Internal
• 02: Grouping for collective dunning

• 03: Grouping for contract dunning
Only
• 04: Grouping for German Civil Code dunning
The Document/Item flag controls whether the dunning procedure is executed on document level or line
item level for a single dunning notice. If the flag is set, dunning takes place on document level for an
individual dunning notice. The items for a document are not taken into account. If the flag is not set,
dunning takes place for every item in a document for an individual dunning notice.
© SAP AG FS315 3-28
Customizing: Define Dunning Procedure (FS-CD)
Internal
Only
Dunning procedures can be defined in

SAP Insurance Æ
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Within this Customizing activity, you assign a dunning procedure to a combination of the dunning
variant, company code, product group and main and subtransaction parameters. This means that the
relevant dunning procedure can be determined automatically by executing the dunning proposal run. A
prerequisite for this is that you have maintained the following settings in the Implementation Guide:
• Product groups
Internal
• Dunning variants
• Main and subtransactions
Only
The product group is an insurance-specific grouping term used to group multiple insurance types. The
product group is used as a criterion for the system to determine a reconciliation account for receivables
or payables. You can assign dunning procedure types to the product group, which are used to determine
dunning procedures and map dunning grouping categories. If you enter a line item manually, you have
to specify a product group. During automatic posting data transfer, the product group is transferred from
the insurance-specific operational system and saved in the line items.
• Example: The following types of insurance can be grouped in the Life Insurance Product Group:
The definition of product groups is made by the Customizing activity within SAP Insurance ->
Collections/Disbursements -> Basic Functions -> Postings and Documents -> Document -> Maintain
Document Assignments.
© SAP AG FS315 3-29
Customizing: Change Definition of Dunning
Procedures
Various buttons to
change, copy, and
delete existing entries,
and to add new ones.
In this activity, you

assign a dunning
Internal
Only
procedure to the
combination of dunning
variant, company code,
product group and main
and subtransaction.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
The CoCd field describes the key that uniquely identifies a company code.
Main and subtransactions (MTrans or Strans) fulfill three functions:
1.) They document the aspect of the business transaction or business process, which underlies the
Internal
posting of the line item. An explanatory text is assigned to every main and subtransaction, and this
can be used for correspondence.
2.) Main transaction and subtransactions can influence automatic account determination for many
Only
processes.
3.) An internal main transaction can be assigned to the main transaction, and an internal
subtransaction can be assigned to the subtransaction; the internal transactions control the procedure
for application-specific processing programs.
• The subtransaction differentiates the main transaction. If main and subtransactions are used in your
application area, enter the appropriate main and subtransaction during document entry.
• Example: The following main transactions could exist for a utilities company:
• Budget billing
• Consumption billing
• Dunning costs
• The following subtransactions could exist for the Budget Billing main transaction:
© SAP AG FS315 3-30
• Budget billing request (statistical posting)
• Budget billing request (actual posting)
• Budget billing payment
The dunning variant (DV) is not contained in the document, and is defined in the master data for the
insurance or contract account relationship, but it can influence the selection of a particular dunning
procedure. If the dunning variant within this master data is changes, and if a dunning procedure is
already running for open items (which belong to this insurance relationship), the current dunning
procedure is ended with the next dunning end run. The next dunning run restarts the new dunning
procedure, according to the defined dunning variant, or dunning continues with this new dunning
procedure (“connecting dunning procedure”).
Internal
Only
Partner
Use
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 3-31
Correspondence Dunning Procedure
Internal
Only
The correspondence dunning

procedure is the key under
Partner
which a dunning procedure is

defined.
Use
The correspondence dunning procedure can be defined for the contract
account or the insurance relationship.
SAP
SAP
 SAP AG 2003
Partner
Use
The correspondence dunning procedure is the key used to define a dunning procedure. In
Customizing, you can create various dunning levels for each correspondence dunning procedure. The
dunning levels determine the dunning period and the charges schedule used to determine the dunning
charges. You can also define dunning activities for every dunning level. A correspondence dunning
Internal
procedure can be assigned to contract accounts on the contract account/business partner level. The
execution of the dunning program then duns the affected correspondence that is due for dunning,
according to the settings in the dunning procedure, and retains the dunning data in the dunning history.
Only
The dunning level determines the dunning activities executed by a dunning run. Items that have not
yet been dunned have dunning level 0. If an open item is entered in the dunning run, and if more days
have passed than the days in arrears defined in the next dunning level, the items is assigned to this
higher dunning level. It remains there until the days in arrears, or the days defined for the dunning
frequency for the next dunning level, have passed. This is how an item that has been dunned on multiple
occasions, reaches the various dunning levels. The highest dunning level for all items grouped in a
dunning grouping determines which dunning activities are executed for the appropriate dunning
grouping. The dunning levels must begin with 1 for each dunning procedure, and must be numbered
sequentially.
The dunning activity is the key for an activity, which is executed in conjunction with the creation of a
dunning notice. The activities are assigned to the individual dunning levels for a dunning procedure in
Customizing. When the dunning print takes place, the function modules defined for the activities for a
dunning level in a dunning procedure are called up.
• Example: Activity key 0001 ensures that a correspondence request is stored in the correspondence
container for the dunning levels for which it is defined, and this request is then output using the
correspondence print run.
© SAP AG FS315 3-32
Customizing: Correspondence Dunning Procedure
Correspondence dunning procedures can

be defined in SAP Insurance Æ
Internal
Only
Transactions Æ Inbound
Correspondence Dunning.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
The defined dunning procedures ca be assigned to contract accounts and are valid across all clients.
Internal
Only
© SAP AG FS315 3-33
Customizing: Change Correspondence Dunning
Various buttons to
change, copy, and
delete existing
entries, and to
add new ones.
Internal
Only
Different Entries for correspondence dunning

correspondence procedures are defined by an
dunning levels can be unambiguous key and its description.
assigned to a
Partner
correspondence
dunning procedure. You
can also define dunning
Use
activities for each
dunning level.
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 3-34
Customizing: Dunning Procedure Categories
Dunning procedure categories can be

defined in SAP Insurance Æ
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 3-35
Customizing: Dunning Procedure Categories
Internal
Only
Determines whether the dunning

procedure is for an initial premium or
Partner
for a renewal premium, for example.
Use
The defined dunning procedure types are assigned to dunning procedures
in the Configure Dunning Procedure activity.
SAP
SAP
 SAP AG 2003
Partner
Use
The classification of dunning procedure allows the Collections/Disbursements system to realize the
requirement that initial and subsequent premiums have to be dunned differently.
The insurance companies can use the dunning procedure categories preset by SAP, such as initial and
subsequent premium dunning procedures, to define their own dunning procedure categories.
Internal
Only
© SAP AG FS315 3-36
Customizing: Configure Dunning Procedures
Dunning procedures can be configured in

SAP Insurance Æ
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 3-37
Customizing: Change Dunning Procedures
Various buttons to
change, copy,
and delete
existing entries,
and to add new
ones.
Internal
Only
Partner
Dunning levels are assigned to

an individual dunning procedure.
Entries for dunning procedures are defined by
Use
Currency-dependent amount
limits, dunning activities, and an unambiguous key and its description.
interest minimum amounts are
defined for every dunning level.
SAP
SAP
 SAP AG 2004
Partner
Use
In this step, you configure dunning procedures for Contract Accounts Receivable and Payable. First you
define dunning procedures, and assign dunning levels to each one. The dunning levels are important in
determining the dunning period, the charges schedule used to determine the dunning charges, and how
interest is calculated and posted. You also define currency-dependent amount limits for every dunning
Internal
level, and dunning activities.

• Note: Dunning variants, not dunning procedures, are assigned on contract account level. This is also
true for the partner-contract relationship level.
Only
© SAP AG FS315 3-38
Customizing: Change Dunning Procedure (Detail)
Maintain dunning
procedure
category
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Key “05” is reserved for correspondence dunning procedures.

• Note: This field is not used by all application areas.
Internal
Only
© SAP AG FS315 3-39
Customizing: Change Dunning Levels
Internal
Only
Partner
Entries for dunning levels are defined by

an unambiguous key and its description.
Use
Amount limits, dunning activities, and interest minimum amounts are defined for
each dunning level.
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 3-40
Customizing: Change Dunning Levels (Detail)
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 3-41
Customizing: Change Amount Limits
Internal
Only
Partner
Entries for amount limits are defined by

a currency and an amount limit.
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Currency is the key used to manage amounts in the system.

A dunning notice can only be triggered in a dunning level if the amount totals for the items due for
dunning in a dunning grouping, which reaches the appropriate dunning level, is larger than the amount
limit defined in the dunning level. The amount limit always refers to a currency. If no amount limit is
Internal
assigned for the transaction currency in Customizing, the amount limit for the local currency is used.
The transaction currency is the currency used for posting the documents. The transaction currency can
Only
differ from the controlling area currency and the object currency. The R/3 system can perform automatic
conversions, thanks to the predefined average rate.
The local currency is the local currency for a consolidation unit. If the local currency differs from the
area currency, you have to perform conversion from the local currency to the area currency.
© SAP AG FS315 3-42
Customizing: Change Dunning Activities
Dunning activities are actions that are carried out, dependent on the dunning level,
when a dunning procedure is realized.
Internal
Only
Partner
Use
Entries for dunning activities are defined by an amount limit, a currency, the
creditworthiness of a business partner, the dunning activity category, a dunning
activity key, and its description.
SAP
SAP
 SAP AG 2003
Partner
Use
Amount limit from which a set dunning activity is executed. An activity is assigned to every dunning
amount limit, dependent on the dunning procedure, dunning level, currency and creditworthiness. The
activity is executed as soon as the dunning amount for a dunning procedure exceeds the dunning amount
limit in the appropriate dunning level.
The creditworthiness of a business partner provides information about his payment behavior. The
Internal
creditworthiness value consists of a manual share and an automatic share. The automatic
creditworthiness value is determined by multiplying the creditworthiness numbers for creditworthiness-
Only
relevant processes (such as dunning notices and returns) with the time-dependent creditworthiness
weighting, and adding the results up. The creditworthiness is determined with the following formula:
• Creditworthiness = automatic creditworthiness value x percentage creditworthiness factor + manual
creditworthiness
If you assign multiple activities to a dunning level using the same key (amount limit, currency,
creditworthiness), these each receive their own counter (Nr). This guarantees that can you assign the
same activity, such as a note to the processing clerk, more than once. The counter is also used when
controlling the selection of dunning activities.
The AC field is the key for the dunning activity category. These numbers have the following meanings:
• 01 = key for the dunning activity category that must be executed for open dunning procedures (such
as initiate dunning letter).
• 02 = key for the dunning activity category that must be executed when ending a dunning procedure
(such as lift invoice lock). This category is only used by the insurance industry.
• 03 = key for the dunning activity category that must be executed when dunning incoming
correspondence.
© SAP AG FS315 3-43
Customizing: Change Interest Minimum Amounts
Internal
Only
Partner
Use
Entries for interest minimum amounts are
defined by a currency and a minimum
amount.
SAP
SAP
 SAP AG 2003
Partner
Use
If interest is to be calculated and posted in the dunning run, you can specify the minimum interest
amount for a dunning notice. You can define this minimum amount for every dunning level, regardless
of other minimum amounts for interest postings, as it forms an additional check. Interest can be
calculated for just one currency in an individual dunning notice. These can be posted in various
Internal
company codes. If no minimum amount is found for a currency, no check takes place. Specifications for
minimum amounts are only relevant if you have specified in the dunning level that interest is to be
calculated in the dunning run (this was not specified in the concrete example).
Only
© SAP AG FS315 3-44
Customizing: Dunning Grouping Categories
Dunning grouping categories can be defined

in SAP Insurance Æ
Internal
Only

Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 3-45
Customizing: Dunning Grouping Categories
Internal
Only
Partner
The dunning grouping category determines the grouping fields for a dunning
Use
notice, and is assigned to a dunning variant.
Attention: This is an entry in an e-table (fixed by SAP). Modification!
SAP
SAP
 SAP AG 2003
Partner
Use
Starting point:
1. It is possible for more than one open item to exist on a policy.
2. It is possible for dunning to have already taken place for an open item on a policy
Internal
Dunning grouping categories are classifications for procedures for processing these cases, and they
control how other open items are dunned. They control whether an open item is dunned separately, or
with other items due for dunning for each policy, and when and with what dunning level the procedure
Only
is opened.
Three dunning procedure categories are supported in FS-CD:
• Individual dunning (one dunning procedure for each document, multiple items permitted for each
dunning procedure, multiple simultaneous dunning procedures possible)
• Collective dunning (multiple items permitted for each dunning procedure, one running dunning
procedure for each policy and currency, items with the same dunning procedure are also integrated
retroactively into the dunning procedure and have the same dunning level as the old item)
• Contract dunning (multiple items permitted for each dunning procedure, new items are not integrated
into a running dunning procedure, one running dunning procedure for each policy and currency).
© SAP AG FS315 3-46
Customizing: Dunning Grouping Fields
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 3-47
Exercises
Chapter: Correspondence and Dunning

Topic: Customizing

Define correspondence variants
Create dunning variants, dunning procedures
Internal
Only
Define dunning charges

Set up dunning procedure determination
Create dunning activities
Partner
In Collections/Disbursements, ABC Insurance is familiar with the following

types of correspondence: Account statement, dunning notices, payment
Use
notification
If the premium was not paid on time, ABC Insurance sent a dunning notice
directly to the customer.
SAP
SAP
ABC Insurance is also active in various other insurance lines of business. The
individual lines of business have differing dunning procedures, with various
dunning levels, arrears settings, and so on.
Partner
Use

Internal
3-1 ABC Insurance would like to create a new reminder letter for the dunning notices.
3-1-1 ABC Insurance would like to create account statements, dunning notices and payment
notifications for the ABC policies. To do this, create a correspondence variant and
Only
assign your policies. Configure a new correspondence variant “Z##“ called “ABC
Corr. Variant ##”.
Assign the following types of correspondence to it:
Correspondence Name
Type
0002 Account statement
0003 Dunning notice
0019 Payment notification
© SAP AG FS315 3-48
3-2 ABC Insurance is to implement its own dunning procedure. Set up this field as follows.
3-2-1 To do this, create a dunning variant and assign your policies. Define a dunning variant
## for this, called “ABC Dunning Variant ##”.
3-2-2 Specify your dunning charge. Define a new dunning charge G# called “ABC Dunning
Charge ##” with main transaction (HVORG) 90## and subtransaction (TVORG)
02##, with a blanket charge of 5.00 EUR.
3-3-3 Set up a new dunning activity. Define a new dunning activity Z0## called “ABC
Dunning Activity ##”. Use activity category 01 and the
VKKMA3_AKT_MAHNUNG_CCC function module.
3-3-4 Now configure the dunning procedure. Define a dunning procedure ## for this, called
Internal
Only
“ABC Dunning Procedure ##”. Configure a level for your dunning procedure, which
triggers the reminder letter after 14 days in arrears, and a level that triggers a written
dunning notice with the newly defined dunning charge after 30 days.
3-3-5 Dunning procedure determination must be maintained, to ensure that your dunning
Partner
procedure comes into force. Assign your dunning procedure ## to your dunning
variant ## and the follow-up premium main and subtransaction (6010/0120).
Use
3-3 Test your settings by posting a follow-up premium with the appropriate due date to one of
your ABC policies and executing a dunning run.
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 3-49
Incoming Payments - Orientation
Overview of Topics
1. Master Data
3. Correspondence
Internal
Only
5. Payment Program
Partner
6. Returns
7. Installment Plan
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 4-1
Chapter 4: Incoming Payments – Electronic
Banking
Electronic Bank Account Statement
Payment Lot
Internal
Only
Clearing Control and Clearing

Partner
Clearing Variants
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 4-2
Electronic Bank Account Statement (Scheme)
Batch Input
Electronic Bank
Acc. Statem. Accounting
SWIFT MT 940
Cash
BACS UK
Management
ETEBAC F Sub-Ledger-
Bank
Banks Fides ARS CH Data Storage specific Batch Input
(SAP) Processing
Multicash D
Internal
Only
BCS NL
Sub-Ledger
CH FS-CD
A
Partner
Direct
Manual Posting
Entry No
Use
analysis of the
note to payee texts
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 4-3
(Documentation)
In the SAP Library (Knowledge Ware-

house) the settings for the electronic
account statement are described in
detail through examples.
Internal
Only
Partner
Use
Transaction “FF_5”
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 4-4
Chapter 4: Incoming Payments – Payment Lot
Payment Lot
Internal
Only

Partner
Clearing Variants
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 4-5
Create a Payment Lot in FS-CD by Transferring Data
from an Electronic Bank Account Statement (1/2)
Transaction FPB7
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
In FS-CD, a differentiation is made between payments that are initiated by the customer, and those that
are initiated by the insurance company.
The payment program processes the open items for all those business partners or contract accounts,
which you have selected. It can be used for incoming payments and also for outgoing payments.
Internal
If payments are initiated by customers, the customer decides on the date of payment. All payments
initiated in this way are processed using the payment lot or check lot function, and the one for automatic
Only
clearing.
If payments are initiated by the insurance company, it is the company that determines when payments
are collected. All payments initiated in the is way are processed with the payment plan function.
ABC executes the automatic payment program once a day, to initiate payments from those customers
who pay using the debit memo procedure. You have to set and execute this process in the
Collections/Disbursements system.
© SAP AG FS315 4-6
Create a Payment Lot in FS-CD by Transferring Data
from an Electronic Bank Account Statement (2/2)
Only the entered external transaction codes of the electronic bank account statement
are transferred to FS-CD. They are classified as "payment", "return", "payment order
lot“, or "check encashment".
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
External transaction (external business transaction: Business transaction code “GVC”):

The external transaction is an overall term for the various options for the bank to characterize a posting.
If the bank makes available account statements in the SWIFT MT940 format, or the Multicash format,
there is a business transaction code. If no business transaction code is delivered, the text key or the
Internal
posting text is used.

You can assign various external transactions to an internal transaction. These transactions are then
posted with the same posting rules.
Only
Business transaction type (type of business transaction from electronic account statement):
Controls whether, and in which lot, the item is to be transferred, for an account statement item during
transfer to the payment or returns lot.
The flag is derived from Customizing as standard, and can be defined according to customer-specific
rules in the function module for event 0955.
The following values are possible:
• ‘01’ Transfer to payment lot
• ‘02’ Transfer to returns lot
• ‘ ‘ No transfer
© SAP AG FS315 4-7
Interpretation Rules for Note to Payee (1/4)
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
In this activity, you define the rules for the automatic analysis of note to payee texts for the automatic
transfer of payment data to payment lots in Contract Accounts Receivable and Payable. Using the values
determined, the system then determines the selection criteria for the assignment of payments to
receivables. Proceed as follows:
Internal
1. Define the selection fields for which the system is to find values during the analysis of the notes to
payee, and assign a category to them (for example, 1 = Business partner number, 2 = Contract
account number).
Only
2. Define the keywords or structures that the system is to use to recognize the selection fields contained
in the note to payee. In the folder Keywords, you can define one or more terms for the selection
category for each company code. In addition, you can also specify the method0 that the system is to
use for the keyword search. For example, enter the keyword CUST* for the business partner number
and choose search method PT. The system then finds the customer and customer number in the notes
to payee. The subsequent term is then interpreted as the business partner number. In the folder
Structure, for each company code you can define samples that the system can use to analyze the
character strings in the note to payee. For the example above, for company code 0001, you could
define that the system only searches for numbers with ten characters, that lie between 5,000,000,000
and 9,999,999,999 and that are specified in four blocks (for example, 5 234 567 890) if you use
business partner numbers that correspond to this structure and numbering in your company. If you
want to subject the values found in this way to an additional check, you can specify a check
procedure for each structure sample - you have defined this check procedure in the preceding
Customizing activity (see Check Procedure for Interpreting the Note to Payee)
© SAP AG FS315 4-8
3. Assign a Selection Category for the payment lot item to the selection categories (for example, 1 =
business partner number) you defined in the first step - in this example, B for business partner. (You
can define selection categories for payment lot items under Basic Functions -> Open Item
Management -> Define Selection Categories and assign it as default value for the payment lot under
Business Transactions -> Payments -> Processing of Incoming/Outgoing Payments ). The system
saves the value found (business partner number) together with the selection category (B ) in the
payment lot item. When you post the lot, the system uses the selection category and the selection
value to assign the payment to open items or to determine the required details for a payment on
account. If the system cannot determine a selection category for the payment lot item during the
check, the payment is transferred into the payment lot, but the system automatically creates a
clarification case in clarification processing for the payment lot when you post.
Internal
Only
Partner
Use
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 4-9
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 4-10
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 4-11
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 4-12
Chapter 4: Incoming Payments – Clearing
Payment Lot
Internal
Only

Partner
Clearing Variants
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 4-13
Clearing Control with Payment Lot as Example (1/3)
The entered general clearing variant (ClVar) is used by default, if

(1) no clearing category-dependent clearing variant is defined or
(2) it is not possible to determine a unique clearing variant during
the clearing process (in case of multiple contract accounts or
multiple account relationships)
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Specifications maintenance is structured according to the usage areas for clearing types:
• Incoming payment specifications
• Account maintenance specifications
Internal
• Collective bill/installment plan specifications and so on

Clearing variant determination
Only
Clearing variant determination takes place in all usage areas according to a uniform logic. Clearing
category-specific determination is supported, as is determination independent of the clearing category. If no
clearing variant is entered for the clearing category of the contract account to be paid, or if this is not
unique in cross- contract account analysis (for example when paying on a business partner) the general
(default) clearing variant is used.
Restricting item selection at transaction level
In addition to entering a clearing variant you can also make a preselection for clearing in this activity (not
for collective bill/installment plan specifications and so on). Selection of open items takes place as standard
under the clearing restriction defined in the item, in the context of the respective business transaction.
Additionally, for each transaction you can define selection restrictions prior to the actual item assignment
for clearing. In this activity you make some basic definitions for item selection, dependent on the clearing
type and clearing category, for example which due dates are to be taken into account or which transactions
are to be completely excluded from clearing analysis.Restriction maintenance is possible on multiple levels.
© SAP AG FS315 4-14
If a valid entry is found for an open item, the system decides whether the item takes part in the clearing
analysis or not on the basis of the selection rule and the grace days.
Note:
For each open item up to four attempts are made to find an entry in a table. The search takes place
according to the following criteria:
• Access with a fully qualified key
• Access with an unspecified sub-transaction
• Access with an unspecified sub- and main transaction
• Access with an unspecified sub- and main transaction and clearing category
The entry found first is used for the restriction. Open items for which none of the three entries are
maintained in the transaction are taken into account for clearing unfiltered.
Internal
Only
Specifications for the Use of Non-Assignable Payments in Incoming Payment

If a payment assignment is not possible due to the configuration of the clearing variant used (for example,
if the contract account does not contain an open item), the payment amount is either posted on account or to
a clarification account according to the specifications. Control takes place dependent on clearing category
and amount.
Partner
Use
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 4-15
Internal
Only
As an alternative to general clearing variants (depend on the clearing type)

it is possible to specify a clearing variant, which depends on the clearing
Partner
category.
In general, the clearing category comes from the partner-specific master
Use
data of the contract account (contract account relationship). In every
contract account relationship, the entry of a clearing category is required.
SAP
SAP
 SAP AG 2003
Partner
Use
Example: Clearing variant “991” is to be applied for clearing type “Payment Lot” (when processing
externally initiated incoming payments, mostly as incoming bank transfers) for clearing category “Z1”
when posting the payment lot.
Internal
The goal is to use the incoming payment to clear open items for a business partner (for an insurance
object), which are posted to a contract account, to which this business partner has an account
relationship.
Only
WARNING: A prerequisite for the application of clearing variant “991” is that clearing category “Z1”
is defined in the master data for this contract account relationship.
© SAP AG FS315 4-16
Internal
Only
Statistical items that are no longer requested can be deactivated (written-off) by setting this
indicator. In consequence, no follow-on posting (down payment, real charges receivable) is
performed. The indicator is possible for down payment requests or other statistical receivables
Partner
(such as charges).
The decision is based on the open items selected for the clearing process and not on the
Use
total situation of the contract account. For technical reasons, only statistical items that have
not been marked for clearing (or partial clearing in the current clearing process) can be
deactivated.
SAP
SAP
 SAP AG 2003
Partner
Use
To amount: Upper amount limit for statistical item to be written off

Grace period for due date of open items: Number of days between the document date used in the
relevant business transaction and the future due date of an item. Indicates which due dates not yet
reached should be considered.
Internal
Write off charges: You can deactivate statistical items that are no longer requested by setting this
indicator. No follow-on posting (down payment, real charges receivable) is posted.
Only
© SAP AG FS315 4-17
Chapter 4: Incoming Payments
Payment Lot
Internal
Only

Partner
Clearing Variants
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 4-18
Customizing: Clearing Variants (1/8)
Every clearing variant can contain several

different clearing steps with flexible and mighty
rules that specify the core of the clearing
control.
They allow automatic assignment and clearing

strategy for companies on multiple levels.
Internal
Only
The individual clearing steps regulate the

selection, grouping, sorting and the amount-
specific assignment of open items for clearing.
They are executed according to their numbers
in sorted order.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
In the following activities you define the clearing variants. A clearing variant consists from these
components:
• Clearing variant key
The clearing variant key defines the name of the clearing variant. A short description can also be
Internal
defined.
• Clearing steps. Each clearing variant should consist of at least one clearing step . These then run
Only
sequentially when clearing.
The clearing steps form the the core of clearing control. They allow the automatic assignment and
clearing strategy of the company to be mapped on multiple levels. The individual clearing steps regulate
the selection , grouping, sorting and the amount-specific assignment of open items for clearing. They are
executed according to their numbers in sorted order.
The individual clearing steps are entirely independent of one another. They only take the amount
remaining to be cleared from the immediately preceding step. Items that have been fully cleared in a
clearing step are not transferred to any subsequent steps.
The definition of a clearing step consists of the entry of the grouping code, sorting code, grouping rule
and the partial clearing specifications.
© SAP AG FS315 4-19
Clearing Variants – Grouping and Sorting Features
(2/8)
The internal field name describes a

grouping and/or sorting characteristic.
User-defined fields from the FKKOP

structure (open items) can also be used.
Additionally, own fields can be defined,

which are determined by customer-
specific function modules.
Internal
Only
Partner
Use
Function Module for Characteristic Derivation
SAP
SAP
 SAP AG 2003
Partner
Use
In this activity you can define open item sorting and grouping characteristics. These usually refer to a
particular feature, for example when the item is a cash security deposit, or when the item is due. The
characteristics defined here are used in a clearing step for two purposes:
One purpose is to group open items. Open items found in one clearing step that bear identical grouping
Internal
characteristic values are viewed as one unit in this step, for example all items with the same due date.
All items in a group such as this are either all included in, or all excluded from, settlement, depending
on the clearing rule being applied.
Only
The characteristics are also used to define the sorting sequence for open items. Sorting determines the
sequence in which the groups are processed and the sequence in which clearing takes place within the
groups.
SAP Standard delivers a selection of grouping and sorting characteristics. If you find these to be
insufficient, you can add new ones for clearing control. There are two ways of going about this:
• Characteristic is an attribute of the open item: If the new characteristic is stored in the open item as a
database field (database table FKKOP), you can add the characteristic and enter the relevant database
field names into the definition for the characteristics. The field Active module will then remain
empty.
• Characteristic is derived: If the new module is not stored in the open item as a database field, but is
derived from the clearing information available, you can add a characteristic. Select a name in the
customer range (X*, Y* and Z*) for the field. The characteristic is then derived using the function
module you have entered in the field Active module. This module's interface must correspond to the
© SAP AG FS315 4-20
interface of sample module FKK_SAMPLE_TFK116. You will find detailed information on this in
its documentation.
You cannot change the entries that have been delivered to you. You can use the following name ranges:
X*, Y*, Z* (customer name range).
If the grouping and sorting characteristics delivered by SAP are insufficient, you can add new ones.
Internal
Only
Partner
Use
SAP
SAP
Partner
Use
Internal
Only
© SAP AG FS315 4-21
Clearing Variants – Defining a Clearing Variant (3/8)
Internal
Only
Partner
The key (ClVar.) defines a Clearing Variant, which contains several different
clearing steps. The rules for automatic assignment and clearing of open items
are defined in every step.
Use
SAP
SAP
 SAP AG 2003
Partner
Use
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
Internal
characteristics for each clearing step.

Clearing variant key: The clearing variant key defines the name of the clearing variant. Additionally, a
short description of the clearing variant can be defined.
Only
Clearing steps
• Every clearing variant should consist of at least one clearing step. The individual steps are to run
consecutively in ascending order, as long as no subsequent step rule has been defined explicitly.
• The individual steps are largely independent of one another. They only get the amount to be cleared
that still remains from the previous clearing step. Items that have been fully cleared in a clearing step
are not transferred to the subsequent steps. With the exception of this rule , all clearing steps work
independently of one another on the quantity of open items provided.
The definition of a clearing step consists of entries in the:
• Grouping string
• Sorting string
• Grouping rules
• and the Clearing step and specifications
© SAP AG FS315 4-22
Clearing Variants – Clearing Steps (4/8)
Internal
Only
Partner
The sequence number (Clearing Step) within a clearing variant is used to identify
individual steps in the underlying clearing strategy.
Use
Rules for grouping, sorting, and clearing are stored in the individual steps. The number
determines the ranking order for processing individual steps.
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 4-23
Clearing Variants – Step Details (5/8)
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 4-24
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 4-25
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 4-26
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 4-27
Exercises
Chapter: Incoming Payments

Topic: Customizing

• Define tolerance groups
• Set up clearing control
Internal
Only
• Define a bank clearing account

• Define a clarification account
• Define short account assignments for transfer postings
Partner
ABC Insurance receives a file from Bank XYZ every day, detailing all
payments that have been received. These must be imported and cleared with
Use
the corresponding open items.
The file sometimes includes payments that cannot be assigned to an open item.
Payments are also sometimes updated erroneously in the
SAP
SAP
Partner
Use
4-1 ABC Insurance does not want to make any recalculation for smaller payment differences,
preferring instead to write these off directly. Create a tolerance group T## for this, with
Internal
CHF 7.00.
Only
4-2 The oldest premium due must be cleared first for each policy. For this reason, you need to
create a clearing variant and define it for payment receipt. To ensure that only ABC policies
are cleared with this variant, you also have to create a clearing category and assign this to
your contract account.
4-2-1 Define a clearing category T## called “ABC Clearing Category ##” and create a
clearing variant V## called “ABC Clearing Variant ##” with the following grouping
and sorting characteristics.
Grouping characteristic: Policy

Sort characteristic: 1. Oldest due date first
2. Main transaction “premium“ (6010)
© SAP AG FS315 4-28
4-3 The incoming payments must also be processed with a new bank clearing account. You need
to create a clarification account to enable you to update postings that cannot be assigned.
4-3-1 Firstly, create a new bank clearing account 1631## called “ABC Bank Clearing
Account ##” (copy account 163130).
4-3-2 Now create a G/L account as clarification account 1010## called “ABC Clarification
Account ##” (copy account 101000).
4-3-3 Mark the new G/L account as a bank clearing account, by giving your bank clearing
account a house bank and setting the “Valid for Payment Lots” flag.
4-3-4 Assign the clarification account dependent on your bank clearing account.
If the bank clearing account is not available for selection, you have to use the
Internal
Only
Goto Æ Key Selection to mark the bank clearing account as “in use”.
Partner
4-4 ABC Insurance also requires an “interim account” (FI G/L account for clearing incoming
Use
payments that are not intended for the FS-CD subledger or the company) to repost payments
that have been posted in FS-CD in error.
4-4-1 Create the new clearing account 1493## called “ABC Clearing Account ##” (copy
account 149300).
SAP
SAP
4-4-2 Set up a short account assignment FI## called “Transfer Posting to ABC Account ##”
for this transaction.
Partner
Use
4-5 Test your settings by setting multiple premiums with differing due dates to debit. Create a
payment lot that uses tolerance to clear just one premium. Use your bank clearing account.
Enter another payment item but enter a policy number that does not exist, so that the
Internal
payment is posted to the clarification account. Post the payments to the interim account in
the G/L.
Only
© SAP AG FS315 4-29
Payment Program - Orientation
Overview of Topics
1. Master Data
3. Correspondence
Internal
Only
4. Clearing and Payment Lots
5. Payment Program
Partner
6. Returns
7. Installment Plan
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 5-1
Chapter 5: Payment Program
Payment Program: An Overview
Function of Payment Program

• Control Parameters
• Customizing of Payment Program Parameters
• Grouping Open Items for Payment
Internal
Only
• Payment Cards
• Payment Order
Settings and Execution of Payment Program

Partner
Use
Creation of Payment Medium
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 5-2
Payment Transactions
Initiated by Customer Initiated by Insurance Company

Incoming payment from direct payers: Incoming and outgoing payments:
z Bank transfer z Bank collection
z Standing Order z Payment card
z Incoming check z Outgoing transfer
z Outgoing check
Internal
Only
Additional:
Internal clearing in the SAP
Collections/Disbursements system
Partner
Use
Payment lot, check lot, and so on Payment Program
SAP
SAP
 SAP AG 2003
Partner
Use
In FS-CD, a differentiation is made between payments that are initiated by the customer, and those that
are initiated by the insurance company.
The payment program processes the open items for all those business partners or contract accounts,
which you have selected. It can be used for incoming payments and also for outgoing payments.
Internal
If payments are initiated by customers, the customer decides on the date of payment. All payments
initiated in this way are processed using the payment lot or check lot function, and the one for automatic
Only
clearing.
If payments are initiated by the insurance company, it is the company that determines when payments
are collected. All payments initiated in the is way are processed with the payment plan function.
ABC executes the payment program once a day, to initiate payments from those customers who pay
using the debit memo procedure. You have to set and execute this process in the
© SAP AG FS315 5-3
Processes in the Payment Program
Insurance Payment Run

Object Customizing
Parameters
Contract Documents
Account
Test Run * Payment Run* Payment

Business document
Internal
Only
Partner
Display Payment
Payment Data and List
Exceptions Clarification List
for Exceptions
Partner
Creation of Payment Media
Use
Payment
Payt Advice Summary
Note
Check * with parallel processing!
SAP
SAP
 SAP AG 2003
Partner
Use
The payment program process runs as follows: 1 selection of open items; 2 grouping open items for
payment; 3 determination of items that require special handling; 4 determination of payment methods
and bank data; 5 determination of payment date and account; 6 posting payments; 7 creation of payment
media.
Internal
Before you execute a payment run, you can execute a test run. The test run does not create any payment
documents, just a payment list.
Only
The results of the (test) payment run are stored in payment tables (DPAYH, DPAYP). These contain
payments and payment exceptions.
Payment data and payment exceptions can be viewed in the payment list, but they can not be changed.
Payment media are created from the payment data. The payment media can be created in electronic form,
or in written form.
The payment run program and the program used to create the payment media both use the parallel
processing technology.
The following data regulates the payment run: Master data, documents, Customizing, current payment run
parameters.
© SAP AG FS315 5-4
Posting Transactions in the Payment Program
Example 1: Bank Collection Example 2: Payment with internal

Clearing (e.g. Deposit
Account)
Contract Account Rec./Pay. Account Contract Account Rec./Pay. Account
1000000 130000 1000007 130000
[1] 200 = 200 [2] [1] 200 200 [2] [1] 200 = 200 [2] [1] 200
Internal
Only
200 [2]
Revenue Account Bank Clearing Account Premium Deposit
163nnn 163nnn 4000007

Partner
200 [1] [2] 200 5000

[2] 200 Automatically
Use
Clearing
[1] Payment Run (revenue account not shown)

[2] Payment
SAP
SAP
 SAP AG 2003
Partner
Use
In the standard case (such as bank collection as an example incoming payment), the payment from a bank's
clearing account is posted to the contract account for the customer (i.e. the reconciliation account for the
customer).
Alternatively, the payment can be made by internal clearing. In this case, a transfer posting is executed
Internal
from one contract account to another.

The payment methods defined in Customizing, which are defined for the contract account or the open
Only
items, determine which of the posting methods are applied for an internally initiated payment.
© SAP AG FS315 5-5

Internal
Only
• Payment Cards
• Payment Order

Partner
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 5-6
Control Parameter: Master Data
Business partner Contract Account Insurance Object
z Address data z Responsible company z Contract account for

z Bank data code clearing/offsetting
z Payment card z Contract account to be z Payment method
used for clearing/offsetting z Bank details
z Bank details z Posting and payment lock
z Payment Card z Alternative payer/payment
Internal
Only
z Alternative payer/ payment recipient

recipient z Planning group
z Payment methods z ...
z Posting and payment lock
z Account view
Partner
z Coverage check indicator

z Clearing category
Use
z Tolerance group
z Planning group
SAP
SAP
 SAP AG 2003
Partner
Use
In order to use payment data that is set on insurance object level, the "parameters active on insurance
policy" indicator must be set.
Internal
Only
© SAP AG FS315 5-7
Control Parameters: Contract Account (1/2)
Transaction
CAA1 – Create Contract Account
CAA2 – Change Contract Account
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2004
Partner
Use
The account view category controls how open items are grouped for a payment. The account view
category "S" groups items on account level, and account view category "E" groups items on insurance
object level.
Coverage check: This indicator causes a deposit check to be executed on a deposit account, when
Internal
executing the payment program. Debit entries are only posted against this account after it has been
confirmed that the balance is sufficient.
Only
© SAP AG FS315 5-8
Control Parameters: Contract Account (2/2)
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
The responsible company code has the same function as the paying company code in financial
accounting (posting the bank line that is responsible for the house bank, sending the payment order, and
so on).
More entries for payments are defined separately for incoming and outgoing payments in the contract
Internal
account master data. In both cases, the following are valid:

Bank details (or the details for an alternative business partner) can be defined for one or both cases.
Only
Payment methods for the document can be overwritten.
A contract account can be locked for incoming and outgoing payments. A bank collection can also be
locked up to a set date, after a failed debit memo.
If a clearing account is used, all due open items for the current contract account are transfer posted to the
clearing account. Payment methods, banks and locks are determined by the clearing account.
© SAP AG FS315 5-9
Control Parameters for Document
Document
z Due date
z Deferral date
z Payment method *
z Payment lock *
z Grouping *
z Clearing lock*
z Only for clearing
Internal
Only
z Alt.payer/recipient *
z Enhanced insurance object (VTRED3)

dynamic clearing account determination
Partner
Priority over specification for the contract account or insurance
Use
object
SAP
SAP
 SAP AG 2004
Partner
Use
The due date is determined by three dates: Cash discount deadline, deferral date and the due date for net
payment.
The grouping field enables the payment program to handle items with the same grouping together.
Internal
The only for clearing indicator works dependent on the account side posted to:
• A payable to the business partner is only used to reduce the debit entries in automatic payment
transactions. Disbursement of this amount is not possible.
Only
• A debit entry is only used to reduce the disbursement amount. The item is not included.
© SAP AG FS315 5-10
Control Parameter: Customizing
Entries in the
Format Other
Company Code
z Structure of Payment General z Exceptions for outgoing

medium z Minimum amounts payment
z Exchange rate diffs z Account determination
z Payment lock reason
Payment method:
Payment Methods in
z Maximum/minimum
Country
Internal
Only
amounts
z Overseas/foreign
z Direction of payment
currency payer auth.
flow (credit/debit memo)
z Payment optimization
z Processing Type
z Value date determination
Partner
z Mandatory specifications
in master record Format
z Payment medium format z Form control
Use
z Posting control z Company data in
z Type of note to payer payment medium
SAP
SAP
 SAP AG 2003
Partner
Use
If you want to create a format, assign a name and then define the technical characteristics of the
payment medium. The format determines whether the payment medium is created on paper, or in
electronic form (DTA, EDI). You can also define your own function modules in Customizing, which
create payment media.
Internal
The company code-specific Customizing for the payment program must only be executed for the
responsible (i.e. paying) company codes.
Only
The minimum/maximum limits, which were defined for a payment method in the responsible company
code, are not effective if the payment method is defined in the document.
Payment optimization uses the bank grouping field in the bank master data, to determine the best hose
bank for the business partner bank.
The value date is defined on the level of the payment method and the house bank. It is used to determine
the value date in the payment document.
The bank clearing account, which is entered in the bank line in the payment document, is determined
with posting area 1061. The G/L account can be assigned to the house bank (and also to the payment
method and transaction currency).
The bank selection is - as defined in Customizing - determined on the basis of company code, house
bank and payment method.
© SAP AG FS315 5-11
Customizing: Define Payment Methods
Within the category

SAP Insurance
Æ Payments
Æ Incoming/Outgoing Payment Creation
Æ Define Payment Methods (Transaction “FQP1”)
Internal
Only
there are activities for customizing payment methods.

Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 5-12
Customizing: Payment Methods in Countries
Internal
Only
Partner
Use
Definition of payment method per country
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 5-13
Customizing: Payment Methods
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 5-14
Customizing: Configuration of Payment Methods
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
You need to specify a document type for posting payment documents, and a format for all payment
methods. The formats contain a description for the sentence structure of the files created by the payment
medium program.
You can also define instruction keys for the payment methods here. These control which instructions are
Internal
given to the banks involved for the execution of a payment order. The payment medium format defines
whether an instruction key is executed
Only
The payment medium format contains the technical details that control the way payment and debit
orders to be sent to the bank or payment mediums for the beneficiary are to be created. Payment
medium forms are defined in line with the specifications published by banks or central bank boards.
There are both document-based payment media (such as checks) and non-document payment media
(DTA or EDI). There are also country-specific and international formats.
The format supplement enables you to enter a business description of the data that is to be transferred in
the chosen payment medium format. You can, for example, use a format to issue payment and debit
orders. In the case of debits, in some formats you have to differentiate between direct debits and
collections. You make this differentiation (if required for the format) using the format supplement.
© SAP AG FS315 5-15
Customizing: Payment Methods in Company Code
(1/4)
Within the category

SAP Insurance
Æ Business Transaction
Æ Payments
there are activities to define specification for
Internal
Only
responsible company code (Transaction

“FQP4”)
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 5-16
(2/4)
Internal
Only
Partner
Use
Definition of minimum and maximum amounts.
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 5-17
(3/4)
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 5-18
(4/4)
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Company code-specific definitions control:

• Amount limits
• If foreign business partners, currencies, and banks are allowed
Internal
• Bank optimization
• Grouping of items per due date.
Only
© SAP AG FS315 5-19
Customizing: Edit G/L Account Centrally
Within the category

Financial Accounting
Æ General Ledger Accounting
Æ G/L Accounts
Æ Master records
Internal
Only
Æ G/L Account Creation and processing

Æ Edit G/L Account (Individual Processing)
(Transaction “FS00”) there are activities for
editing G/L accounts.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 5-20
Customizing: Edit G/L Account Centrally
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 5-21
Customizing: Define House Banks
Internal
Only
Within the category

Financial Accounting
Æ Bank Accounting
Æ Bank Accounts
Æ Define House Banks (Transaction “FI12”)
Partner
there are activities for defining house banks.
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 5-22
Internal
Only
Partner
Definition of all house banks

and corresponding bank keys.
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Each house bank of a company code is represented by a bank ID in the SAP system, every account at a
house bank by an account ID.
In the SAP system, you use the bank ID and the account ID to specify bank details. These specifications are
used, for example, for automatic payment transactions to determine the bank details for payment.
Internal
Note
• For domestic banks, you should enter the bank number in the "bank key" field and for foreign banks,
Only
you should enter the SWIFT code in this field.
© SAP AG FS315 5-23
Internal
Only
Assignment of G/L
accounts to house banks
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
You have to create a G/L account for the specified bank account. The G/L account is to be managed in
the same currency as the account at the bank.
Internal
Only
© SAP AG FS315 5-24
Grouping Open Items for Payment
z Business Partner
z Alternative payer
z Contract account used for clearing payments
z Bank details for payer
Internal
Only
z Responsible company code

z Payment methods
z Payment lock
Partner
z Currency key
z Grouping (for group collection)
Use
z Free grouping of application area
SAP
SAP
 SAP AG 2003
Partner
Use
The open items for a business partner are grouped together to payment groups. This process can not take
place on a cross-account basis.
The insurance object can be used as an extra grouping field. The account view and the "variable
clearing" indicator are used to determine this.
Internal
An extra grouping field can be added in event 0600. The same event can be used to lock items.
The payment program groups the items due for a business partner into payable groups. This is only
Only
possible when all the items of the business partners are considered as a whole - meaning that the
selection of the items is not sorted according to contract accounts. Items are grouped by the criteria
mentioned above.
In the clearing control in the Implementation Guide for Contract Accounts Receivable and Payable , you
define which items are grouped as one unit in a clearing activity and in which order the program
processes the items in a group or the individual groups. In addition to this standard grouping, you can
refine the grouping of the items using characteristics that you define. You make the relevant settings in
the Enhanced Grouping .
© SAP AG FS315 5-25
Grouping: Example (1/2)
Payment:
Partner 100000
Contract Account
1000000
Account 1000000
125 329
ContrAcctCat: 01 (premiums, multiple insurance objects
4
permitted)
200
Internal
Only
Account View: ‚S‘ (Group items on

contract account level)
Bank Clearing Account

Insurance object: 11- Insurance object : 11-
Partner
66001020 68001020
163nnn
Life insurance policy: 125+4 Capital sum life insurance: 200
329
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 5-26
Grouping: Example (2/2)
Payment:
Partner 100000
Contract Account
1000000
Account 1000000
125 129
ContrAcctCat: 01 (premiums, multiple insurance objects
4
permitted)
200 200
Internal
Only
Account View: ‚E‘ (Group items on

insurance object level)
Bank Clearing Account

Insurance object: 11- Insurance object : 11-
Partner
66001020 68001020
163nnn
Life insurance policy: 125+4 Capital sum life insurance: 200
129
Use
200
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 5-27
Partial Payment: Example
Payment:
Partner 110000
Contract Account
Account 1000000
1100000
ContrAcctCat: 02 (claim, multiple insurance objects
permitted) 2500
1100
Internal
Only
Account View: ‚S‘ (Group items on

contract account level) 1400
IO: 11-28101020
Partner
OI: 1100 (premium, due 01.04.03) Bank Clearing Account

Auto claim: - 2500 (repayment, due 01.01.03) 163nnn
Use
1400
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 5-28
Internal Clearing: Example
Payment:
Partner 100007
Contract Account
Account 1000007 Account 4000007
ContrAcctCat: 01 (Premium) ContrAcctCat: 04 (Depot) 1000007
Account View: ‚S‘ (Group items Account View: ‚E‘ (Group items 125 329
on contract on insurance 4
Internal
Only
account level) object level) 200

Clearing account: 4000007 Coverage check: ‚X‘
Payment method: D (deposit co II.)
Contract Account
Partner
4000007
IO: 11-66001027 IO: 11-66001027
Use
5000
Life insurance : 125+4 Capital sum life insurance: 200
329
SAP
SAP
 SAP AG 2003
Partner
Use
Prerequisite: Payment method permits internal clearing

Clearing against a set contract account:
• Clearing account is defined in the contract account master data
Internal
• Coverage check possible for clearing account

Clearing against a dynamically determined contract account
Only
• Prerequisite: Variable clearing indicator is set. No clearing account is maintained.
• The account is determined using the insurance object/partner master data relationship from the "Enh.
insurance object" and "Partner for enh. insurance object" fields (VTRE3, VGPART3) in the OI
(document).
© SAP AG FS315 5-29
Customizing: Extended Grouping
Within the category

SAP Insurance
Æ Payments
Æ Extended Grouping
there are activities for defining extended
Internal
Only
grouping.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Using the settings maintained here, you can also exclude line items from payment via the payment
program.
Internal
Only
© SAP AG FS315 5-30
Extended Grouping: Define Defaults for Payment
Run (1/2)
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
In this activity, you define which grouping variant is to be used for extended grouping in the payment
program.
For the determination of the grouping variant, the system supports both determination dependent on and
independent of clearing type. If you do not specify a grouping variant for the clearing type of the
Internal
contract account to be paid, the general (default) grouping variant is used.

In this activity, assign the required grouping variant either dependent on or independent of clearing type to
Only
clearing type '06' - payment run.
© SAP AG FS315 5-31
Extended Grouping: Define Defaults for Payment
Run (2/2)
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
You can define clearing types under the following path: Basic Functions -> Open Item
Management -> Clearing Control -> Define Clearing Types
Internal
Only
© SAP AG FS315 5-32
Extended Grouping: Grouping Characteristics
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
In this activity, you define the characteristics that you want to use to group the items to be paid in the
payment program - in addition to standard grouping - or that you want to use to exclude items from
payment.
Open items that have the same value for grouping characteristic in a grouping step are considered as one
Internal
unit in this grouping step. Depending on the derivation rule, the items of such a group are either paid
together or excluded from payment together. The exclusion of items can refer to one individual grouping
step or to all following grouping steps.
Only
You can define grouping characteristics as follows:
• Characteristic is an open item attribute: If the new characteristic is an attribute in the open item
(structure FKKOP), add the characteristic and enter the corresponding field name from structure
FKKOP in the characteristic definition. The field Active Module remains empty.
• Characteristic is derived: If the new characteristic is not an attribute in the open item, but can be
derived from the existing information as part of the payment program, add the characteristic. Choose
a name within the customer naming convention (X*, Y*, and Z*) for the field name. The function
module that you entered in the field Active Module is used to derive the characteristic. The interface
of this module must correspond to the interface for sample function module
FKK_SAMPLE_TFK126.
© SAP AG FS315 5-33
Extended Grouping: Grouping Variant
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Under a grouping variant, you summarize one or more grouping steps that control the extended grouping
in the payment program.
Internal
Only
© SAP AG FS315 5-34
Extended Grouping: Grouping Activities
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 5-35
Payment Cards
Prerequisite:
Best Bank
VISA
z Maintenance of payment card data in

1234 5678 8765 4321
master record of business partner
Valid from 02/01 to 12/03
Sandra M. Mueller
Internal
Only
z Instead of maintenance bank details payment card

identification is required.
z Usage of payment cards for incoming and outgoing payments
Partner
two different payment methods are required.
Use
SAP
SAP
 SAP AG 2003
Partner
Use
In the payment run you can also pay open items with payment cards. When a payment card is used, open
receivables are generated for the payment card institute. They are then reported to the institute and
transferred in a subsequent invoicing run.
Business partner master record contains card data instead of bank data
Internal
• Card number is checked

• Locks, validity intervals
Only
• Table CCARD (master data payment cards)
• Table BUT00C (master data business partner: payment cards)
Card ID in insurance object (not in account)
A separate card ID can be defined for outgoing payments.
Payment method uses payment card as processing type
© SAP AG FS315 5-36
Account Relationship: Payment Data
In the insurance relationship,

you define whether the
parameters are valid for the
insurance relationship
Internal
Only
Maintenance of payment method

‘payment card’ and CardID.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 5-37
Customizing: Payment Cards (1/2)
Within the category
Internal
Only
Æ Payment Cards
there are activities for defining and editing
payment cards.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 5-38
Customizing: Payment Cards (2/2)
Internal
Only
Partner
Use
In order to avoid possible errors when you make entries, the checking rules
allows you to check, whether certain conditions of the relevant payment card
types are met. Therefore only one checking rule for each payment card type
should be maintained.
SAP
SAP
 SAP AG 2004
Partner
Use
Permitted card types are defined in the “Maintain Payment Card Type” activity (‘Basic Settings ->
Payment Cards’; table TB033).
After valid payment card data has been defined, check rules must be assigned. Check rules are defined
in the ‘Assign Check Rule’ activity. A module for formally checking the card number must be assigned
Internal
to every rule (BUP_CCARD_CHECK_AMEX, BUP_CCARD_CHECK_VISA und

BUP_CCARD_CHECK_MC in the standard software).
Only
© SAP AG FS315 5-39
Customizing: Payment Cards
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
At least one payment method must be maintained as the payment method for payment cards (transaction
FQP1, table TFK042Z).
For every payment method, you must define whether this is to be processed using a bank account or a
payment card. If processing takes place using a bank account, the clearing account in the payment run
Internal
(FPY1) is determined with posting area 1061 (company code + house bank + payment method +
currency + account ID => bank clearing account); for processing with payment card, the clearing
account is determined with posting area 1120 (card type + company code => card account), and the
Only
house bank does not influence account determination.
Payments with payment cards can processing incoming payments as well as outgoing payments. If
payment cards are to be used for incoming payments and outgoing payments, two different payment
methods must be set up in Customizing.
© SAP AG FS315 5-40
Customizing: Define Accounts for Payment Card
Institute
Within the category

SAP Insurance
Æ Business Transaction
Æ Payments
Æ Payment Cards
there are activities for editing accounts for
Internal
Only
payment cards.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 5-41
Payment Cards: Account Assignment
Internal
Only
Partner
Use
Assignment of clearing accounts to each payment card type
SAP
SAP
 SAP AG 2003
Partner
Use
In this activity you define the following for each payment card company (transaction FQZV):
• A reporting account, to which you make transfer postings of receivables (that are to go to a payment
card company) when you execute a settlement run.
Internal
• A clearing account, to which the receivables for the company are posted.
Only
© SAP AG FS315 5-42
Payment Card: Direct Debit
The payment program clears open items for the BP

and creates open items on the receivables account
for the payment card institute.
The payment card institute receives an invoice
Internal
Only
Transfer posting from receivables account to the

clearing account
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
If a customer pays an insurance premium using a payment card, the payment program clears the open items
for the customer and creates new open items on the receivables account for the payment card institute
(tables DPAYH, DPAYP).
The open items, which are produced at the payment card institute, are determined (meaning those items for
Internal
the customer, which were cleared with the payment run)

The payment card institute then receives an invoice. A file is created, and the items are transfer posted from
Only
the receivables account to the clearing account. Invoicing can be repeated.
© SAP AG FS315 5-43
Posting Transactions in the Payment Program
Contract account Rec./Pay. Account Revenue account
1000000 130000 301000
[1] 200 = 200 [2] [1] 200 200 [2] 200 [1]
Rec. Account
Payment card institute Bank clearing account
Internal
Only
nnnnnn 163nnn
[2] 200 200 [3] [3] 200

Partner
Use
[1] Debit Entry
[2] Open item at rec. Account of payment card institute
[3] Transfer to bank clearing account
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 5-44
Payment Card: Execute Billing
Report
RFKKPCDS – Execute Billing
Program (RFKKPCDS) is for

settlement and transfer of payment
card-relevant data to a payment
Internal
Only
card institution.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
A G/L account is set up for every payment card type, to include items that are produced by payments
with the corresponding payment card.
The current program selects the items for an account like this, and creates packets (batches) for each
payment card type, company code and transaction currency.
Internal
You can also select the payment data for a set payment run for invoicing. In this case, the program takes
over the functions for payment medium printing.
Only
During invoicing, the program adds the receivables created by the payment run, and receivables posted
by manual postings in the system.
Invoicing generates a file and transfers the items from the receivables account to the clearing account.
The following programs are available for analyzing the processing of card payments:
• RFKKPCAI Display items on payment card account
• RFKKPCAS List of payments
•
© SAP AG FS315 5-45
Returns - Orientation
Overview of Topics
1. Master Data
3. Correspondence
Internal
Only
4. Clearing and Payment Lots
5. Payment Program
Partner
6. Returns
7. Installment Plan
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 6-1
Chapter 6: Returns
Overview
Internal
Only
Settings and Execution of Returns Lot

Partner
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 6-2
Return (Refusal): Definition
Returns (or refusals) occur if the

bank responsible for a business
Payment partner is unable to execute a
debit memo procedure, or if the
business partner refuses
sed! payment.
Refu
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
This function permits the management of bank returns, which can result from the following payment
methods:
• Check
Internal
• Debit memo
• Payment card collection
Only
• Outgoing payments
Returns are grouped in returns lots. The returns lots can be generated manually (using returns
documents) or automatically, by transferring data that is delivered electronically by the bank.
Possible reasons for the production of returns can include:
• Deleted account
• Insufficient coverage on the account
• Bank collection refusals from business partner
© SAP AG FS315 6-3
Returns and Bank Collection: Process
R/3
Posting data
Transfer
Returns lot update
Returns Activities
Post Processing
1
documents external data
Returns Lot Returns
4
5
Internal
Only
Subledger
Documents
2
Acct Statements
3
Payt Program General Ledger
Partner
Use
Payt Medium Data
Creation
Bank
SAP
SAP
 SAP AG 2003
Partner
Use
Debit entry (execute payment plans).

Payment initiated by insurance companies (payment program), payment media forwarded to bank, open
items are cleared.
Internal
Account statement from bank is posted in the general ledger.

Returns data is delivered from the house bank.
Only
Returns lot is posted (returns document created), cleared items are reopened.
© SAP AG FS315 6-4
Returns Processing: Technical Procedure
RFKKRF00
In Customizing for
Determination of payment
Returns Reasons
document and cleared items
ZP270:Difference determination TFK045A

Returns Reasons
Creation of returns items Creation of

charges items
ZP260:Charges determination, which

are passed on to insurance object TFK045B
Charges Table
Creation of charges items (insurance
Internal
Only
Conversion of
TFK045D returns
object)
Conversion
ZP290: Triggers more activities TFK045C
before posting Differences
Mass posting
Partner
DFKKRK
Returns Header TFK045E
Logging history update Activities
Use
DFKKRK Posting Procedure DFKKRPE DFKKRP DFKKRH
Returns Lots Error log Returns Lot History
SAP
SAP
 SAP AG 2003
Partner
Use
The conversion of external house bank returns reasons to internal returns reasons is defined in
Customizing (table TFK045D.
The entire returns process consists of the following steps:
• Creation of returns header
Internal
• Entry of returns items

• Closure of returns lot
• Post returns lot
Only
• Write returns history
• Processing errors, if required
Returns events (TFKFBM table):
• 260: Determination of charges posted to contract account. This means that bank charges can be
passed to the contract account if necessary.
• 270: Determination of difference in returns document and original payment document. Maximum
amount limits are checked.
• 280/1: Determination of contract account for the first/second bank charge, if charges are
determined before the actual charges are determined.
• 285/6: Extended account determination, after charges are determined (optional).
• 290: Releases returns document after generation, but before checking and updating (before calling
up the posting module)
• 291: Enters the individual lines after setting
• 295: Changes contract accounts after posting and implementation of other activities (workflow,
correspondence)
© SAP AG FS315 6-5
Returns Reason
Returns Category
History Days
Creditworthiness No.
Returns Reason Application Form
Clarification Account
Check Void Reason
Internal
Only
Returns Activity 1 Returns Activity 2 Returns Activity n...

Partner
Charges Charges Charges
Use
Max. Amount Difference Max. Amount Difference Max. Amount Difference
SAP
SAP
 SAP AG 2003
Partner
Use
The returns reasons determine the company-specific reasons or circumstances that have led to a return.
Company-specific returns reasons are assigned to the returns reasons for the house bank in a separate
Customizing step. Technically, this step means that the bank returns reasons are converted to R/3 returns
reasons.
Internal
The returns charges are calculated on the basis of the conditions that are defined in the returns reason.
The returns category is used to automatically determine the G/L account, which were posted to for
Only
returns charges and for bank account clearing. Two charges expense and revenue accounts are possible
for clearing charges.
• A returns category is assigned to every returns reason. Multiple returns reasons can have the same
category (such as debit memo, bank returns, check returns, and so on). This permits the use of
various G/L account for each returns reason.
The "history days" entry determines the number of days that an event can lie in the past in order to be
taken into account when evaluating the returns history. If the value is 0, all events are taken into
account.
Activities can be defined in Customizing for each returns reason. For example, the "Change payment
method from bank collection to direct payer" activity can be created for the "Delete account" returns
reason.
© SAP AG FS315 6-6
Returns Example 1: Without Charges/Without
Taxes
Bank Bank Clrg. Acct. Contract Account 1
[5] 300 [6] 300 [3] 100 [1] 100 100 [3]
300 [5]
[4] 200 [7] 100
Returns Clrg. Acct. Contract Account 2
[6] 100 [7] 100 [2] 200 200 [4]
Internal
Only
[6] 200 [7] 200 [7] 200
[1],[2] Open items

[3],[4] Payment/Clearing
Partner
[5] Bank collection

[6] Returns
[7] Resetting clearing
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Returns are posted as follows:

• Firstly, the receivables or payables that were cleared on the basis of the payment, are determined.
This payment clearing is reset so that the original receivable or payable is then an open item again.
The system creates a returns document, which contains the offsetting postings for the items in the
Internal
payment document. Other postings, which are required due to taxes or charges, are generated and
other activities are triggered.
Only
Various types of returns postings:
• Net returns (return contains no charges)
• Gross returns (return contains charges)
• Charges contain taxes (gross charge)
• Charges contain no taxes (net charge)
The returns account is a clearing account. In the example above, you can see two contract accounts, each
with an open item and two payment documents, which are retained.
Assignment takes place using the original document number (from the "note to payment recipient in
bank document" field”)
Posting takes place using the "FKK_REFUSAL_POST_MASS" function module”
© SAP AG FS315 6-7
Returns Example 2: With Charges/Without Taxes
Bank Bank Clrg. Acct. Contract Account 1
[5] 300 [6] 330 [3] 100 [1] 100 100 [3]
300 [5]
[4] 200 [7] 100
[9] 17
Returns Clrg. Acct.
Contract Account 2
[6] 110 [7] 110
Internal
Only
[6] 220 [7] 220 [2] 200 200 [4]

[7] 200
[9] 17
[1],[2] Open items
Partner
Expense Revenue
[5] Bank collection
[6] Returns
[7] Resetting clearing [8] 10 [9] 17
Use
[8] Charges posting [8] 20 [9] 17
[9] On-debit [opt]
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 6-8
Returns Example 3: With Charges/With Taxes
Bank VAT Cash Receipt Contract Account 1
[5] 300 [6] 346 [9] 2,22 [3] 100 [1] 100 100 [3]
300 [5]
[9] 2,22 [4] 200 [7] 100
[9] 17
Returns Clrg. Acct. Taxes
Contract Account 2
[6] 123 [7] 123 [8] 3
Internal
Only
[6] 223 [7] 223 [8] 3 [2] 200 200 [4]

[7] 200
[9] 17
[1],[2] Open items
Partner
Expense Revenue
[5] Bank collection
[6] Returns
[7] Resetting clearing [8] 20 [9] 14,78
Use
[8] Charges posting [8] 20 [9] 14,78
[9] On-debit [opt]
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 6-9
Returns and Bank Collection: Example
Business Partner Revenues
Debit Entry (1)
(1) 100 100 (1)

Payment Program (2)
(1) 100 100 (2) 100 (1)
Bank Clrg. Acct.
(2) 100
...

Posting Account statement (3)
(1) 100 100 (2) 100 (1)
Internal
Only
Bank Bank Clrg. Acct. Returns Clrg. Acct.
(3) 500 500 (3) (3) 100

100 (3) (2) 100 ...
300 ... 300
...
200 200
... ...
Partner

Postings returns lot (4)
(1) 100 100 (2) 100 (1)
Bank (5) 100 Returns Clrg. Acct.
Use
(3) 500 Bank Clrg. Acct. (3) 100 100 (5)
100 (3) ...
300 (2) 100 100 (3)
...
200 ...
...
SAP
SAP
 SAP AG 2003
Partner
Use
Debit entry
Payment initiated by insurance companies (payment program), payment media forwarded to bank, open
items are cleared
Internal
Account statement from bank is posted in the general ledger

Returns data is delivered from the house bank
Only
Returns lot is posted, cleared items are reopened
© SAP AG FS315 6-10
Customizing: Configure Returns Reason
Within the category SAP Insurance Æ
Internal
Only
Transaction Æ Returns there are activities to
configure returns reason.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 6-11
Customizing: Returns Reason
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Activities:
Check the delivered returns reasons and change them if required.
To create a new returns reason, proceed as follows:
Internal
• Define the returns reason.

• Maintain the settings for returns activities.
Only
• Define currency-dependent scaled charges.
• Define currency-dependent maximum permitted difference amounts.
© SAP AG FS315 6-12
Customizing: Returns Activities
Identification of returns
activity
Activities are
depending from
Internal
Only
number of returns (first

returns = 0).
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
In Customizing, you make settings for every activity key for the returns reason, which determine what
activities have to be executed for returns.
It is possible to pass on ("on-debit") all charges that occur due to a return from the bank, to the business
partner. Processing charges ("graduated charges"), which occur at the insurance company, can also be
Internal
calculated and passed on. Charges can be posted either statistically or actually.
Account/item dunning lock: In the case of a return, the lock reason entered here is entered in the account
Only
or item for the business partner. The same is true for payment locks.
The new due date is determined by enhancing the document date with the number of deferral days.
Payment lock reason for individual items: If a return occurs, the payment lock reason entered here is
defined for the appropriate open item.
The incoming payment method specified here is entered, in the case of a return. As dunning notices are
not triggered a "bank collection" payment method, you can convert the payment method to "direct
payer" here, to activate the dunning run.
Additional user-defined events (function modules) can be used under "Further activities". Event 295
(returns: process contract account) is used in conjunction with this function. You can trigger
correspondence, for example.
© SAP AG FS315 6-13
Customizing: Graduated Charges (1/2)
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
The charge is calculated for the business partner, in addition to the bank charges. The amount of the
graduated charges is dependent on the returns amount.
• If the indicator is set, the charge amount is also calculated if the "Pass on charges" indicator is not
set.
Internal
A returns charge is assigned to every returns amount charge, and this is posted as soon as the total
amount for a return exceeds the returns amount limit.
Only
Graduated charges are determined by the insurance company. The contract account is also debited. This
charge is only cleared if the Graduated charges indicator is set in the returns activity.
The amount limit (total for returns items) must be reached, to trigger graduated charge clearing for the
set currency. This then debits the contract account for the business partner. The amount permits the
graduation of charges.
© SAP AG FS315 6-14
Customizing: Graduated Charges (2/2)
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 6-15
Customizing: Automatic Charges Determination
Internal
Only
Partner
Use
The maximum difference between the return amount of the house bank and the
original payment amount that is tolerated for automatic posting of charges.
SAP
SAP
 SAP AG 2003
Partner
Use
The maximum amount difference denotes the amount that is tolerated between the returns amount from
the house bank and the original payment for automatic posting of charges. If the difference is higher that
the difference entered, account assignment has to take place manually. If a maximum amount limit of
"0" is entered, only those postings whose returns amount is the same as the original payment amount are
Internal
created automatically.
Technical note: The standard function module FKK_SAMPLE_0270 determines the differences for
charges.
Only
© SAP AG FS315 6-16
Customizing: Assign Return Reasons to House
Banks
Internal
Only

assign return reasons to house banks.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 6-17
Customizing: House Bank
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
The assignment means that the specification of a house bank returns reason when processing a returns
lot is sufficient to determine the company-specific returns reason. When posting the returns lot, the
activities defined in the company-specific returns reason are executed.
You can maintain the settings required for house banks in Customizing under Financial Accounting ->
Internal
Bank Accounts.
Only
© SAP AG FS315 6-18
Customizing: Define Bank Clearing Account for
Returns
Internal
Only

define bank clearing account for returns.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 6-19
Customizing: Bank Clearing Account
In order to activate the G/L account

for the returns lot, the indicator
“ForReturns” must be set.
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
If you also select the F. payt lot field, the account is used for payment lots.
Depending on the returns lot type, he bank clearing accounts are used as follows: When creating or
changing a returns lot, the system checks the entered clearing accounts. Only accounts that you have
defined in Customizing are permitted.
Internal
Only
© SAP AG FS315 6-20
Chapter 6: Returns
Overview
Internal
Only

Partner
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 6-21
Returns Lot: Create (1/4)
Transaction FP09 – Returns lot
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 6-22
A returns lot contains all

documents (refusals), that
have been refused by the
house bank and returned
(in one file or bank account
statement) to the insurance
company.
Internal
Only
The returns must be posted

to one G/L bank clearing
account to cancel the
payment.
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
If the "amounts contain bank charges" indicator is set, all returns amounts that are contained in the
returns lot are analyzes as gross amounts. The net amount is determined as follows: Net amount =
returns amount - charges amount. If this indicator is not set, the returns amounts are evaluated as net
amounts (net amount = returns amount).
Internal
If the "bank charges contain taxes" indicator is set, all charges that belong to this return are evaluated
as gross charges. The net amount is determined as follows: Net charge = charges amount - tax amount;
otherwise net charge = charges amount.
Only
© SAP AG FS315 6-23
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
If you set the "line item" indicator, a separate line is created in the transfer document to the G/L. This
item is not summarized with the other item (as is the case when creating totals records), even if the
account determination is identical.
If you do not specify a bank clearing account in the returns lost, the system uses Customizing to
Internal
automatically determine the bank clearing account that suits that returns category.
Only
© SAP AG FS315 6-24
Internal
Only
Partner
Clearing Document number
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 6-25
Returns Lot: Close and Post
1 2
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
To process returns, you can either select a lot, which has already been created but has not yet been
closed and add returns to it, or you can create a new returns lot.
You can not add any more items to a closed returns lot without the necessary authorization. However,
you can make changes to an existing item, if correction is required.
Internal
The next step in returns processing is posting. If all entries were correct and could be assigned to the
appropriate items, all items are updated.
Only
Incorrect items, which have not been updated, can be post processed.
© SAP AG FS315 6-26
Returns Lot: System Interruption when Updating
If the returns lot update is

interrupted while the file is being
processed on the application
server, you can restart processing
Internal
Only
from the last read line.

Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
Returns lot transfer header data: BFKKRK

Returns lot transfer item data: BFKKRP
Internal
Only
© SAP AG FS315 6-27
Returns History
Transaction FPM4 – Returns history
Internal
Only
Partner
Use
SAP
SAP
 SAP AG 2003
Partner
Use
A returns lot has to have been posted to allow the display of a returns history.
You can call up the returns history by using Environment from the menu bar.
You can maintain the display variant under Settings Æ Display Variant
Internal
Only
© SAP AG FS315 6-28
Exercises
Chapter: Returns
Topic: Customizing

• Configure returns reasons
Internal
Only
The house bank for ABC Insurance could not collect a payment because the
account of the customer in question was overdrawn. This return must now be
posted and the clearing on the customer account has to be reset.
Partner
6-1 In order to be able to post returns for your new payment method, create a new returns reason.
Use
Set up a new returns reason ## in company code V001, called “ABC Returns ##”.
6-2 Assign returns reason ## to your house bank.
SAP
SAP
6-3 The bank clearing account must also be assigned to the new returns reason. Define the
appropriate bank clearing account (163000) for your returns reason ##.
6-4 Test your settings by posting a return with reason ## from your house bank B## (house bank
Partner
Use
account K##).
Internal
Only
© SAP AG FS315 6-29
Timetable
1. Day 2. Day 3. Day 4. Day

9.30 – 9.45 Uhr 8.30 – 10.00 Uhr 8.30 – 10.00 Uhr 8.30 – 10.00 Uhr
Introduction Master Data (3) Correspondence (1) Payment Program (1)
9.45 – 10.15 Uhr 10.30 – 12.00 Uhr 10.30 – 12.00 Uhr 10.30 – 12.00 Uhr
Overview Postings and Documents Correspondence (2) Payment Program (2)
SAP R/3 (1) and Returns
Customizing
10.30 – 12.00 Uhr
Internal
Master Data (1)
Only
Lunch
13.00 – 14.30 Uhr 13.00 – 14.30 Uhr 13.00 – 14.30 Uhr 13.00 – 14.30 Uhr
Partner
Business Partner Postings and Documents Incoming Payments (1) Integration

Interface (2)
Use
15.00 – 16.30 Uhr 15.00 – 16.30 Uhr 15.00 – 16.30 Uhr 15.00 – 16.30 Uhr
Master Data (2) Account Balance Incoming Payments (2) Final Discussion
SAP
SAP
 SAP AG 2003
Partner
Use
Internal
Only
© SAP AG FS315 7-1
Business Partner

Relationship
Internal
Only

Partner
Payment Plan
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 7-2
Internal
Only

Partner
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 7-3
Internal
Only
Dunning
Partner
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 7-4
Chapter 4: Incoming Payments – Electronic
Banking
Payment Lot
Internal
Only

Partner
Clearing Variants
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 7-5

Internal
Only
• Payment Cards
• Payment Order

Partner
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 7-6
Chapter 6: Returns
Overview
Internal
Only

Partner
Use
SAP
SAP
 SAP AG 2004
Partner
Use
Internal
Only
© SAP AG FS315 7-7

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FS315 FS-CD Customizing

 SAP for Industries

Copyright 2004 SAP AG. All rights reserved.

components of other software vendors.

R/3 4.6C, Kernel 4.6D, FS-CD Release 4.64

2. Postings and Documents

2. Postings and Documents

© SAP AG FS315 1-1

Contract Account and Contract Account

Insurance Object and Insurance Relationship

© SAP AG FS315 1-2

SAP for Insurance

Business Information Warehouse and Strategic Enterprise Management

Insurance Core Systems Business Support

Collections and Disbursements

HEALTH HEALTH SRM

SAP Net Weaver

 It is possible to integrate customer-specific data without modification. This guarantees complete

© SAP AG FS315 1-3

Business Partner z Business Partner

© SAP AG FS315 1-4

© SAP AG FS315 1-5

Requirements SAP Business Partner

© SAP AG FS315 1-6

Requirements SAP Business Partner

z Cooperation with applications in z Communication (interfacing)

© SAP AG FS315 1-7

© SAP AG FS315 1-8

differentiate between the following business partner categories:

© SAP AG FS315 1-9

Business partner grouping decides about the number range. The

decides, if and how the field ‘Business Partner’ is filled.

© SAP AG FS315 1-10

Command field to enter transaction codes.

Instead of using the command field, the

© SAP AG FS315 1-11

Clicking the button ‘SAP

© SAP AG FS315 1-12

Within the category

© SAP AG FS315 1-13

number range intervals (button 3).

© SAP AG FS315 1-14

Further number range intervals can be

Number range intervals are

defined by a unique number

(Ext), which determines

characters or numbers, as sorting can be different on various platforms.

© SAP AG FS315 1-15

Insert new interval with the

© SAP AG FS315 1-16

The recently defined

into the list of existing

© SAP AG FS315 1-17

Different buttons to change,

Business partner groupings are defined by a unique grouping number (Grouping),

a Short name, a Description, the Number range, an indicator to determine the

© SAP AG FS315 1-18

© SAP AG FS315 1-19

The recently defined grouping

SAP for Industries

It is possible to integrate customer-specific data without modification. This guarantees complete

External data transfer takes place in multiple steps: