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Credit card integration in SD

Former Member
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2,294

Hi everyone,

Could anyone send me some links, or explain me something regarding credit card integration in SAP SD.

Thanks in advance.

I apprecieate your help

Accepted Solutions (0)

Answers (3)

Answers (3)

Former Member

Hi

Credit cards are payment cards used to pay for transactions

See this link

http://help.sap.com/saphelp_47x200/helpdata/EN/93/745347546011d1a7020000e829fd11/frameset.htm

Hope this helps

Bye

N Ganesh

    • assign points if useful **

Former Member

Dear Aditya,

I have worked extensively on credit card configuration. let me know you email id so that i can send the documents to you.

In SAP the credit card processing is integrated with the sales and

distribution module.

Payment card configuration

Much of what is required for credit card processing to work with VISA, Master

Card, and American Express is already set up in SAP.

For all credit card configurations refer to

Define Card Types

Transaction SPRO IMG ‡ Sales and Distribution ‡ Billing ‡ Payment Cards

Here we define the type of cards that can be used in the system. A four-letter

code is given for each card type. E.g. MAST for Master Card, VSAJ for Visa

Japan. A function module for checking the card number is also specified here.

Credit Card Configuration And Processing In SAP

Maintain Card Categories

(a) Define card Categories: Here we specify the card category of the

payment card. With this the system automatically determines the card

category when you enter a card number in master data or sales

documents.

(b) Determine card categories: Here we specify the acceptable number

ranges for different card types. Also card categories are assigned to the

card types. Even though SAP comes with card checking algorithms

(Function Modules) for standard card types this configuration setting

is particularly useful to those cards that do not contain any standard

checking algorithm already set up in SAP.

Maintain Payment Card Plan Type

In this step, you assign the payment plan type for payment cards, the payment

card plan type, to all sales document types in which you will be using payment

cards. You cannot process payment cards if you have not made this assignment

The standard system contains payment plan type 03 for processing payment

cards. Fig 3. Show the screen where this assignment is done.

Credit Card Configuration And Processing In SAP

Maintain Blocking Reasons

In this step, you define blocking reasons for payment cards. You enter these in

the payer master record to block cards. The standard system contains blocking

reason 01 for lost cards.

Risk Management for Payment Cards

Transaction SPRO IMG ‡ Sales and Distribution ‡ Billing ‡ Payment Cards

‡ Authorization and settlement ‡ Risk Management for payment cards.

Risk Management plays a central role within Sales, providing you with checks

and functions to minimize your credit risk. In addition to letters of credit and

export credit insurance, payment cards are among the payment guarantee forms

that you can use to insure payment for sales order items. SAP comes with predefined

payment forms of guarantee as shown below. Customer can also

maintain other forms of payment suited for their line of business.

Credit Card Configuration And Processing In SAP

Define forms of payment guarantee

Maintain payment guarantee procedures

In this step, you define Payment guarantee procedure. These procedure controls,

which form of payment guarantee, are valid for a particular customer, and for a

particular sales document type.

The various settings done under this configuration are

Define payment guarantee procedures

Maintain customer determination procedure

Maintain document determination procedure

Assign sales document types

Determine payment guarantee procedures

Maintain authorization requirements*

Here requirements* are set to tell the system how and when to carry out

authorization when a sales order is saved. SAP comes with two requirements

Form routine 1. Carry out authorization only when the sales document is

complete. The system carries authorization when the order is saved.

Form routine 2. Carry out authorization only when the sales document is

complete, but the authorization for all the complete documents is carried out in

batch.

Additional requirements* can be assigned here as per the business requirements.

*Requirements are ABAP/4 code. Requirements for various functions can be accessed using transaction VOFM

Credit Card Configuration And Processing In SAP

Maintain Checking Groups

How and when authorizations are carried out depends on the setting you make in

the customizing for maintain checking group routines.

The three main settings that influence authorization are:

a) Authorization requirements

b) Authorization horizon

c) Preauthorization

There are two settings under this setting.

Define checking group: Here a checking group is defined and the

authorization requirement (described in the previous section), Authorization

horizon (described below) and preauthorization settings are done for this

checking group.

Credit Card Configuration And Processing In SAP

Here you can see a checking group C1 is defined with the authorization

requirement 902. Checking the pre-authorization tells the system to carryout preauthorization

if the order fulfillment date falls outside the horizon. The

authorization horizon specifies the number of days before the material

availability date, or billing date, that the system is to initiate authorization. If a

sales order is saved within the authorization horizon, the system carries out

authorization immediately. If a sales order is saved before the authorization

horizon comes into effect, the system does not authorize at all, or carries out

preauthorization.

In this example, the system has been set to authorize one day before delivery

creation. The system does not carry out authorization when the order is saved on

Day 0, rather on Day 2. Note that the authorization validity period has been set to

14 days in Customizing IMG‡ Authorization and settlement‡ Specify

authorization validity periods. The transaction will have to be reauthorized if

delivery activities take longer than 14 days.

Assign checking groups: Here the checking groups defined earlier are

assigned to different sales document types as shown fig 8.

Specify authorization validity periods

Here number of days that an authorization can remain valid for different card

types are maintained. Refer to Fig 9.

Credit Card Configuration And Processing In SAP

Assign checking groups

Assign validity period for authorization for different card types

Credit Card Configuration And Processing In SAP

Account Determination

Transaction SPRO IMG ‡ Sales and Distribution ‡ Billing ‡ Payment Cards‡

Authorization and settlement ‡ Maintain Clearing House

In the following steps, you set the condition technique for determining

clearinghouse reconciliation accounts for authorization and settlement. The

system uses the entries here to determine the clearing account for the payment

card charges. When settlement is run, the postings in the receivable account for

the payment card will be credited and a consolidated debit will be created and

posted to the clearinghouse account. These accounts are a special type of general

ledger account that is posted from Sales and Distribution.

Here, you maintain:

• Maintain field catalog.

• Condition tables and the fields that they contain

• Access sequences and condition types

• Account determination procedures

• You then assign these accounts to condition types.

Add to field catalog

Here you maintain the fields that can be used in the condition table. Fig 10.

Shows the transaction to maintain the field catalog.

Maintain Field Catalog.

Maintain condition tables

Here condition tables are maintained with fields that are added to the field

catalog. SAP comes pre-configured with two condition tables 4 and 6.

Credit Card Configuration And Processing In SAP

Maintain Condition Table

Maintain access sequences

In this step we define an access sequence and link the access sequence with the

condition tables.

Here an access sequence is defined. SAP comes with the access sequence A001.

Define Access Sequence

Once the new access sequence is defined, it is linked to the condition tables as

shown in the next screen.

Credit Card Configuration And Processing In SAP

Maintain Access For Access Sequence

Selecting an access and clicking fields will display the fields for the selected

access as shown below for access 10 as shown above.

Display Access Fields

Maintain condition types

Here condition types are defined and the access sequence to linked to it.

Condition types are contained in account determination procedures and control

which access sequences the system uses to find condition records.

These are

The condition

tables.

Credit Card Configuration And Processing In SAP

Define condition type

Maintain account determination procedure

In this step an account determination procedure is defined and linked to the

condition type (which in turn is linked to the access sequence).

Define account determination procedure

Assign account determination procedure.

Here an account determination procedure CC01 is defined and the condition type

CC01 is assigned to it.

Access sequence linked to the condition type

Credit Card Configuration And Processing In SAP

Assign account determination procedures

In this customizing the previously set up account determination procedure is

assigned to different billing documents.

Assign Accounts (G/L)

G/L accounts are assigned here for the combination of Sales organization, Card

type, chart of accounts and condition types.

Assign G/L accounts

Set authorization / settlement control per account

Each G/L account is assigned an authorization and a settlement function module.

The system will read the configuration a call the authorization and settlement

function module during authorization and settlement respectively.

Credit Card Configuration And Processing In SAP

Set Authorization and settlement function module

Maintain merchant IDs per account

A merchant may have one or more IDs for each clearinghouse with which it does

business. Here, you assign these different merchant IDs to their related

receivables accounts.

Assign Merchant ID’s

Credit Card Configuration And Processing In SAP

Authorization and Settlement in SAP

Sales Order Cycle With Credit Card

Authorization

When an order is placed through the front-end system, the order information,

credit card information, billing information, shipping information is passed to

SAP. SAP processes the order calculates the taxes, the shipping costs and reads

the configuration information settings and executes the function module setup as

described . The function module formats the data and makes a RFC *

call to the payment application**.

The payment application screens the order for fraud, encrypts the data and

communicates with the third party processor who in turns communicates with

the card association and card issuer.

*RFC (Remote Function Call)

*Payment Application: Middle ware between SAP and third party processor/bank.

Credit Card Configuration And Processing In SAP

The third party processor responds back with the response whether the

transaction is approved or declined or referred.

Note: When any item in the order does not have a confirmed quantity, then

authorization is not carried out for the full amount. A small dollar amount

usually ($1) is used as the authorization amount. During the rescheduling run

the system will check for the material availability. If the material can be

delivered within the horizon date, a full authorization for the order is carried

out.

Approved: When the credit card transaction is approved the systems checks for

the material availability, confirms the material for the ordered quantity and saves

the order.

Declined: The material availability check for the material is not made, and the

order is rejected.

Referred: The order is saved and is blocked for delivery. In this situation is

merchant calls the bank checks for the available credit on the card and a manual

authorization is carried out.

Sales Order Entry Screen in SAP

Payment Card

Information

Credit Card Configuration And Processing In SAP

The first line in payment card screen is the card check performed by SAP system,

using the card check algorithm function module as described in Fig 1. And the

remaining lines represent the actual authorizations that are carried out.

Payment Card Screen

Path Header ‡ Payment Cards.

Settlement

Legally the merchant can charge the credit card after the order has been

completely processed. In SAP this happens after a delivery is created and the

goods has been shipped. In case there is not enough authorization for the order

to be delivered, the system goes out the get the authorization for the remaining

amount.

In SAP settlement is initiated using the transaction FCC1. All the valid

authorization is submitted in a batch to the payment application at scheduled

intervals as specified by the third party processor.

The payment application encrypts this data and communicates with the third

party processor. The third party processor checks if the settlement request has a

valid authorization against it. The third party processor then transfers the fund

from the cardholder’s bank to the merchant bank.

Authorization

Response

Credit Card Configuration And Processing In SAP

Credit Card Configuration And Processing In SAP

Regards,

Rakesh

Former Member
0 Kudos

Hi

you accept payment from a customer using a credit card, then subsequent

authorization of the amount by the credit card company guarantees that you will receive payment.

n Because this process is carried out using a secure payment guarantee form, it does not cause any

increase in total commitments as defined within credit management.

n Credit management can now be used as a second stage within risk management, below the secure

forms of payment guarantee:

If you have also granted a credit limit to the customer mentioned above and you receive an order that

is not to be paid by credit card, then this order increases total commitments within credit

management. In this case there is no guarantee that payment will be made.

The checks against credit cards, letters of credit and export credit insurance are managed in the same

way as the individual checks within credit management, in which a status is set that is taken into

account when determining the overall status.

n The release/rejection of blocked documents is carried out via the list of blocked sales documents.

n The updating of insurance balances and letter of credit balances is carried out via information

structures, as in credit management.

n A significant difference between letters of credit and payment cards is that if the letter of credit is

entered in a payment guarantee procedure, then a letter of credit must be assigned in the order,

otherwise the order will be blocked. If payment cards are entered in the procedure, then the order

will not be blocked even if no card is entered. This difference is due to the difference between the

business transactions for which these payment guarantee forms are used.

Former Member
0 Kudos

Hi

I have a client who is using Letter of Credit for his suppliers in overseas. Can please tell me the configuration steps for LOC process. I haven't worked on this scenario before. Please let me know how this process could be brought into the system.

Thanks

Renu