01 0 trm_pscd_introduction_new

Public Sector Collection and Disbursements

IBU Public Sector

Course Prerequisites

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SAP Financials

Relevant Public Sector Experience

Target Group

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Audience:

Project team leaders and members responsible for the implementation of SAP’s Public Sector solution

Consultants

Presales

Duration: 5 days

Introduction

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Trainer

Participants

Name Organisation Role in projects Objectives

General

Course Overview

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Course Goals

Course Objectives

Course Content

Course Overview Diagram

Main Business Scenario

Contents:

Course Goals

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Understand the scope of public sector-specific processes in PS Collection and Disbursement

Gain an understanding of the interaction of PSCD, SAP CRM and other components in the context of Tax and Revenue Management

Describe and configure key processes within the PSCD product

Identify the integration points between PSCD and other SAP ERP accounting modules

Note: This course does not cover in-depth interface design to core operational public sector systems

This course will prepare you to:

Course Objectives (1 of 2)

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Create, display, and maintain business partners, contract accounts, contract objects

Understand the use of the tax & revenue accounting functionalities and other accounting processes

Post and clear (manually) open items for obligations

Perform detailed account balance display

Trace and view the flow of documents through SAP ERP

At the conclusion of this course, you will be able to:

Course Objectives (2 of 2)

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Configure key customizing parameters for processing control

Create installment plans, payment lots, return lots, and update the general ledger

Execute periodic activities and closing operations

Understand the concept of invoicing in FI-CA

At the conclusion of this course, you will be able to:

Symbols

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Terms and Definitions

Business Examples; Business Considerations

Customizing

Additional Technical Information (most of these pages are not taught in class)

IMG

These symbols will guide you through the workshop. They mean:

Agenda

Introduction

Master Data

Specific Posting Processes

Payment Run and Transfers

Clearing Control / Ac. Maint.

Documents

Transactions

Payments and Clarification

Installment Plans / Promise to Pay

Security Deposits

Correspondence

Dunning

Integration Accounting

Returns

Interests

Business Pains for the Director of Tax & Revenue

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Fragmented access for taxpayers

Registration,Account

Maintenance

Collect Tax Information

Returns Filing& Processing

Filing CompliancePayments,Collections

Disputes & Appeals

Audits,Tax Inspection &

Detection

Accounting

Measurement

Single revenue and tax type limitations

Limited view of taxpayer

Undetected fraud & tax evasion, low enforced revenues

Low voluntary tax compliance and revenues

High taxpayer burden

Slow revenue reconciliation to general fund

Cannot measure revenue agency effectiveness, low revenue per dollar spent

Low collection efficiency, high cost of operations, low payment efficiency

Redundant systems for each tax, revenue and receivable type, multiple sources of taxpayer data

High cost per return filed

Legacy, custom-built, disconnected systems for each step in tax lifecycle

SAP Increases Revenue Collections and Compliance

© SAP 2007 /

Provide multiple taxpayer access points

Support all revenue and receivable types

Improved voluntary tax compliance and revenues

Higher enforced revenues, increased % of receivables collected

Collect money faster, lowered cost of operations, make payments faster

Foster “constituent” oriented service

Accelerate revenue reconciliation to general fund

Demonstrate public accountability, increased revenue per dollar spent

Standardized solution connecting the tax & revenue management lifecycle process

Lowered cost per return filed

Offer “single view of taxpayer” across tax types and tax lifecycle

Collections & Disbursements

Audits, Inspection & Detection,

Taxpayer Case Management

Revenue Accounting, Performance Benchmarking Registration,

Account Maintenance and Service Support

Online Forms, eFiling, Returns

Processing

Filing Compliance

Disadvantages of Stand-alone Applications

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Calculation1

Citizen Account1

Registration1

Collection1 ...

Calculation2

Citizen Account2

Registration2

Collection2

Calculationn

Citizen Accountn

Registrationn

Collectionn

Higher maintenance costsLess information visibleMore inconsistent dataUncomfortable for constituentsLess compliance

Advantages of Integrated Solutions

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Calculation1

Citizen/Business Account

Registration(ONE for ALL)

Calculation2

Calculationn

Collections/Delinquencies

Generic IT-Framework Consistent view of citizen/business Verified and reconciled filing data Timely and automated mass processing Central information on payment history E-Services: simple for constituents,

low costs for the public

SAP Tax & Revenue Management Package

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SAP CRMSAP ERPE

nter

pris

e P

orta

l

Budget

FinancialCustomer Care

Tax Estimation

Tax Analysis

Case/Records Management

SAP NetWeaver

Business Intelligence

Documents

Rules Engine Workflow

Revenue Accounting

Collections Management

Controlling

Financials

Public Sector Collection & Disbursement

Enterprise Extension – Public Sector Audit CaseBankruptcy

Case

Taxpayer Online Services

Registration

Returns Processing

Receivables & Payables Management

e-Filing

e-Payment

Account Information

Collaboration

Activities Overview

Public Sector Collection & Disbursement (PSCD) - Product definition

© SAP 2007 /

Public Sector Collection and Disbursement

(PSCD)

Public Sector Collection and Disbursement

(PSCD)

Technical ComponentTechnical Component

Product ComponentProduct Component

Industry Solution – Public Sector Contract Accounting

(IS-PS-CA)

Industry Solution – Public Sector Contract Accounting

(IS-PS-CA)

Solution ScenarioSolution Scenario

Tax and Revenue ManagementTax and Revenue Management

Grantor ManagementGrantor Management

Social Services & Social SecuritySocial Services & Social Security

Border ManagementBorder Management

How is PSCD being developed?

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TelcoRM-CA

UtilitiesIS-U

FI-CA

PSCD

FI

FI-CA

IS-U

...

Public SectorPSCDInsurance

FS-CD

FI-CA

Why “Contract Accounting“ ?

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ContractAccountContractAccount

... to being a Business Partner.

From being a Citizen, Business Owner, Taxpayer....

One Citizen Account – different Contract Accounts

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Citizen

Business

Business

Partner

Business

Partner

Leisure

Tax

Leisure

Tax

Property

Tax

Property

Tax

PSCD

SAP‘s concept of Mass Data Processing

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Ability to Administer Process Mass Records With many Business Partners Processing Millions of Open Items

i.e. in Performance Test based on 5 M. Business partners:– Posting run 3,600,000 items per hour– Correspondence 8,900,000 items per hour

Ergonomic Back-office activities

Integration with Front-office activities

Optimum Performance

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Public Sector Collection and Disbursement (PSCD)achieves optimum performance through the followingtechnical features:

1. Designed for Mass Data processing e.g. by Contract Accounting architecture or by Parallel runs

2. Open Item Management in a Sub ledger with periodic G/L-Update

Technology: Mass Processes in FI-CA

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Indicators of large data volumes:

Target: Processing time can only be reduced if processesare split up

Parallel processing of the dataset

Payment run

Mass calculation of interest

Dunning notices

Correspondence print

Generation of bills

Technology: Splitting-Up Processes

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Job 1Business partner:

From 100,000 to 699,999


From 100,000 to 699,999


From 100,000 to 349,999


From 100,000 to 349,999


From 350,000 to 401,000


From 350,000 to 401,000


From 400,001 to 699,999


From 400,001 to 699,999

Job 1-3end at nearly the same time

Job 1-3end at nearly the same time

End of runtimeNot in parallel

RuntimeRuntime

Interval separation issupported by the system

Parallel runs

Technology: Parallel Processing - Interval Creation

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Intervalsize = 3

Intervalnumber

= 4

Intervalnumber

= 3

IntervalSize = 4

Interval_1Interval_2

Interval_3

Interval_1

Interval_2

Interval_3

Interval_4

BP_1

BP_3

BP_4

BP_5

BP_9

BP_19

BP_20

BP_30

BP_21

BP_35

BP_40

BP_31

Technology: Parallel Processing - Portioning

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Challenges/Problems

How is the dataset to be portioned?The dataset is not distributed evenly:

Contract account numbers or business partner numbers are generally more concentrated in some number intervals than in others.

Contract accounts have varying numbers of items.

How many portions are to be assigned to each process? Each processing run does not contain the same processes or number of processes:

Processes on different servers have varying degrees of "performance".

Furthermore, performance is dependent on other processes that are being carried out at the same time.

Technology: Parallel Processing - Realization

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mOIs

mOIs

mOIs

...

Interval1

Interval4

Interval9

Interval3

Interval6

Interval2

Interval10

Server AJob 1

Server AJob 2

...Server X

Job n

Dispatcher formass data program

m = Block value

Enhancements I

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Enhancement Concept for Industry Solutions andCustomers:

Posting areas (FQC0)

Process / event

Different applications use different application indicators (for example „P“ = Public Sector, „R“ = IS-U, „V“ = IS-IS/CD...)

System brings in all relevant tables(SI_INCLUDE, CI_INCLUDE)

Master data are built with Business Data Toolset (BDT)

Enhancements II

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Example Dunning activity run:

Framework program (with parallelization, determination of open items, protocol, reads dunning history....)

3 events, i.e. user exits (grouping, set dunning locks, check tolerance days...)

Technology: Event Concept (1)

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Yes

Yes

No

No

FI-CA program(Event)

FI-CA program(Continuation)

Customer-Specific

Industry- specific

Standardprogram

ISprogram

Customerprogram

Allows flexibilitywithout modifyingSAP programs

Technology: Event Concept (2)

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Standard functionalityTFKFBM

Event

2000............

Text

Interest key determ.............

ABAP/4 modules

FKK_SAMPLE_2000............

Industry functionalityTFKFBS

Event

0350............

Text

Dunning Activities............

ABAP/4 modules

ISU_0350............

Customer functionalityTFKFBC

Event

...

...0260

...

...

Text

...

...Return charges

...

...

ABAP/4 modules

...

...FCS_0260

...

...

SAPxxxxx

program.

...event 2000 ...

...event 0350 ...

...event 0260 ... ... ...

SAP ERP Central Component (ECC) - SAP ERP 6.0

© SAP 2007 /

Industry solutions shipped in SAP ERP 6.0 are technically realized:

within the cross-industry application’s Core

as Industry & Enterprise Extensions of SAP ERP to be activated via the SAP Switch Framework

Business Function Sets Public Services:

BF Contract Accounting Funds Management

BF Collection & Disbursement BF Grantor Management BF Tax & Revenue

Management

C

IE

FormerAdd-On

SAP Web Application Server

SAP ECC Core

FormerAdd-On

FormerAdd-On

FormerAdd-On

Add-On

SAP ERP 6.0

SAP NetWeaver Add-On

EE EE EE PSCD IE IE

Industry & Enterprise Extensions

SAP ERP 6.0: Industry Extensionscan be activated via the Switch Framework

© SAP 2007 /

SAP Switch Framework

SAP Discrete Industries Mill Products

SAP Media

SAP Telecommunication

SAP Oil and Gas

…..

SAP ECCSAP ERP Central Component 6.00

Industry Business Function Sets

Generic Business Function Sets

Financial Services

Global Trade

…..

Only ONE Industry Business Function Set can be activated via Switch

…..

SEVERAL Generic Business Function Sets can be activated via Switch

SAP Enhancement Packages

© SAP 2007 /

SAP offers a new method to enhance the SAP Business Suite and ERP solutions

Update the SAP enterprise software solutions with minimal disruption to business and IT operations

Industry leading technique to evolve and expand capabilities of the organization software solutions

“Expand on demand”

In our experience applying the principles of lean manufacturing to Application Development and Maintenance can increase productivity

by 20 to 40 percent while improving the quality and speed of execution.”

The McKinsey Quarterly, May 2007

“

Lean

User interface

Functionality

Enterprise services

NetWeaverfoundation

EhA EhB

EhC EhD

EhE EhF

EhA EhB

EhC EhD

EhE EhF

EhA EhB

EhC EhD

EhE EhF

Enhancement Package

New SAP Release Strategy

© SAP 2007 /

INNOVATION

Adoption of processes when required Easy introduction of new processes New user groups Modernized user interfaces

STABILITY

Stable core processes Legal compliance Stable technology platform Sufficient maintenance schedule No need for major upgrades

NEW RELEASE STRATEGY

Flexibility to implement new processes and scenarios

Innovation delivery without disruption

Switch framework provides flexibility to chose what functionality to use

SAP NetWeaver

SAP ERP 6.0

Enhancement Packages

SAP ERP 6.0 Overview

© SAP 2007 /

SAP NetWeaver

SAP ERP 6.0


Quick Facts About SAP ERP 6.0 Launched in June 2006 Built on SAP NetWeaver 7.0 More than 3,400 productive systems

(07/2007) Platform upon SAP will deliver future

software innovations Software innovation delivered via “SAP

enhancement packages” SAP enhancement package 4 for SAP ERP

went into ramp-up in November 2008

What Are Enhancement Packages? Optionally installed and activated software innovations for SAP ERP 6.0

Software innovations include; UI simplifications, functional enhancements, industry specific capabilities and enterprise services

Cumulative in nature; current enhancement packages contain the entire content of earlier packages

Enhancement packages are not support packages

SAP Enhancement Packages for SAP ERP

© SAP 2007 /

Man- datory

Optional

Legal/Tax Changes, Corrections


Support Packages

New/Improved Functionality

Switch Framework

Enterprise Services

A New Approach to Software Upgrades with SAP ERP 6.0

© SAP 2007 /

Functionality

Application Platform

User interface

Enterprise services

Managing Traditional Software Upgrades

No options, “All or None” Non-targeted software

innovation Heavy - high adjustment effort

User interface

Functionality

Enterprise services

ApplicationPlatform

EhA EhB

EhC EhD

EhE EhF

EhA EhB

EhC EhD

EhE EhF

MES Integ.

EBPP

E-Recruit.

HCM forms

Credit Report

Budget Executio

n

Enhancement Package

E-Recruitment

Managing SAP Enhancement Packages

Optional, “Pick and Choose” Targeted software innovation Lightweight – low adjustment

effort

Comparison of Software Delivery Methodologies

Benefits of the Enhancement Concept

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SAP publishes test case templates for every business function

SAP documents details of ERP enhancements by business function

All details are available to customers in advance: http://service.sap.com/erp-ehp

Test Case Templates

Streamlined Documentation

Customers have flexibility to activate business functions that meet business needs

Training and acceptance testing is isolated to a defined area of SAP ERP

Selective Changes

- Simplified budget estimation and project planning

- All necessary information centrally available along the project lifecycle

- Less effort needed for test preparation

- More efficient test execution for key users

Adoption of software innovation can be activated on demand

Avoids “big-bang” upgrade projects

Isolates testing effort and accelerates time to value

Benefits for the customer:

Summary of Enhancement Packages

© SAP 2007 /

SAP is changing the game with enhancement packages: Innovation without disruption

Sustainability All Enhancement Packages follow SAP ERP 6.0 maintenance cycle

Pick and Choose Switch framework provides flexibility to choose what functionality to use

Stability AND Innovation Predictable projects and isolated testing and adjustment effort

Deploy as you go All SAP enhancement packages are optional

Advantages of Contract Accounts Receivable and Payable

© SAP 2007 /

Optimized use of storage space due to a special type of document structure

Parallel mass runs

SAP Business Partner concept

Documents are assigned to business partners and contract accounts (and contracts - depending on the industry)

Summarization of general ledger information (summary records)

Agent-friendly processing of accounting transactions infront office and back office

Basis for industry- and customer-specific functions

Integration to other SAP applications (CRM, FSCM, BI, …)