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mySAP Training for Finance

Content: SAP System Architecture SAP Enterprise Model: SD SAP Navigation Customer Master Data (Payment Terms) Credit Management & Credit Customer Master Data Research – Customer analysis Daily Reports Monthly Reports

Procter & Gamble 2008 OLGA CBD Finance Training

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Systems Architecture:

GDCGlobal Data Client

Master data (G11 box)

CRMCustomer Relation Mgt

AR Trade (F5P box)

SC(Supply chain) SD (F6P box)

CFMCorporate Financial Mgt

(Treasury)

GCFGlobal Core Financials

(GL+AP) (G4P box)

S1 (Source One) Global Accounts

Receivables Report

Customers, Credit Limits, Materials, …

Direct debit + Payments

Monthly rollups

Payscore, DSO, Shipments,…

Orders

Shipment

AR is here!

ALL Customer Master Data requests


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Systems Architecture:

Integrated ArchitectureOne box (example: E8P)

• OSB + F&ADistributed Architecture:

Example > three boxes:• CRM: Customer Relationship Management• SC: Supply Chain• GCF: Global Core Financials

How is “OSB” distributed?


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SAP Navigation


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Enterprise Structure after OLGA implementation


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Customer Master Data (Payment Terms)

All Customer Master Data in GDC must be maintained. Please,

be informed about all AR Master Data fields >>

DUE DATE ANALYSIS: To get correct DUE DATE for all document all New

Payment Terms must be maintained in GDC. Final Payment Terms

list for Russia>>

AR Master Data

Payment Terms


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Payment Terms based in calendar days.


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Due date = Baseline date + Payment termBaseLine Date:

1) COS customers

Baseline date = Delivery date= Goods issue date

2) COR customers

Baseline date = billing date = POD date

3) FDI distributors

Baseline date = billing date


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Global program (ZFARCAL) to ensure thedue date falls always in a working day,avoiding impact on customer‘s paymentperformance (Payscore).

Rule: Always to the next working day.

ZFARCAL runs in a daily basis in background mode


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Additional bank lead time (2 WD) will be included in the payment terms in calendar days.Example: Originally: 7 days + 2 WD (bank lead

time)Baseline date Thu 9/08/2007Due date = 9/08/2007 + 7 = 16/08/2007 (Thu) + 2WD = 20/08/2007

(Mon)

Mapped to: 9 days payment termDue date = 9/08/2007 + 9 = 18/08/2007 is Saturday (ZFARCAL) => 20/08/2007

Watchout: The new payment term set up in combination with ZFARCAL cover most of the scenarios but not all of them.


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Only for prompt payment scenario working days will be used as a payment terms (Balkans solution).

Relevant payment terms need to be entered in table ZFXXFIXEDWEEKDUE to activate working-days mode.


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Prompt payment: Balkans solution based on working days

National Accounts: 7x payment terms. Neither stop shipment nor penalty for overdue items.

Regional Distributors: 7x + 2 payment terms. This must be reflected in RD‘s contracts and invoice layout.


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New Payment Term creation initiates CBD Finance

New Payment Terms Creation process:

Approval on new Pymnt Term request needed from Business Expert >> Susanne Kalmar;

Confirmation from Master Data Specialist needed that all New Pymnt Terms in GDC tool >>Leentje Debrouwer;

Confirmation from Master Data Team (Moscow office) needed that all set-up finished in mySAP for all New Pymnt Terms for shipments.

Min timing for all this processes takes about 3 working days (from request).


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Credit Management

Credit control area: RU00 linked to LE 316Global Risk categories:

•E: Except (no order will be blocked, use for affiliates customers)

•P: Pre-approved (no order will be blocked but Internal Control requires then some other kind of monitoring)

•NEW: New (risk category has restrictive usage and can be used only as an interim risk category till the risk assessment has been completed and we have an approved credit limit. It is not meant to be used on-going).

•IAC: inactive (use for closed customers)


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Credit Management

Risk categories for Russia:• RU1: Credit LimitCheck on credit limit considering open order, open delivery, open billing

values and open receivables.Check on Next Int. Review Date used as a validity date for Credit Limit.

14 grace days.

• RU2: Credit limit + overdueCheck on credit limit (same as RU1) plus check on overdue items.Maximum number of overdue days: 2Documents included for the check: All debit documents + residual items

(doc. Type DZ).

• RU3: Credit limit + overdueSame as RU2 but it checks only for 1 overdue day.

• P: No order will be blocked >> Use Consignment ONLY


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Credit Customer Master Data

Credit limitCredit limit agreed/ RD‘s informed. CLimit used for credit management and reporting. In case of 5% CL tolerance, manual order release is required via transaction code VKM1.

Last int. review date (CL valid-from date). Next int. review date (CL valid-to date). Risk category

Set of checks to be executed upon order creation.


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Credit representative group

Customer grouping for reporting purposes. • RU1: RD - Combined distributors

• RU2: KA - Mass national accounts (direct)

• RU3: KEA - Key electro accounts (direct)

• RU4: Specialty only Mow/Spb RDs

Dependance of Customer Groupping and Risk Categories:

Credit representative group Risk Categoties

RU1 P (Consign)& RU2

RU2 RU1

RU3 RU1

RU4 RU2


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Credit Customer Master DataReports using Credit Representative Group:

Report Name Transaction/Report

Displaying Credit Overview F.31

Displaying List of All Orders Released in SAP-SD VKM2

Displaying List of Orders which Passed Credit Check in SD VKM4

Displaying Open Items Trends Report ZFOPEN

Payscore Comparison of Last N Months ZFXXR005

Deductions Overview Report ZFDED

Detailed Deductions Report ZFDDED

ECD-UCD Report ZFEU

Program to Print TOR ZFTOR

Detailed Payscore Report ZFDPS


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All Credit Limits change initiates

CBD Finance

Process for Credit Limit Changes:

Approval from Management in STEAM format according amounts;

Confirmation from Master Data Team (Moscow office) that all Credit Limits in mySAP;

AR Team have to check all Credit Limits in mySAP.

Min timing for technical process takes about 1 working days (after STEAM).


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Research – Customer analysis (DF)


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Please, use VF03 for document review (order & invoice in F5P, ТОРГ12 & 1Т doctype available in F6P only):

VF03 Press >>

Choose doc type >>

Press Button Print Preview >>


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Research – Customer analysis (DT)


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Research – Customer analysis (DT)

FI - AR document types

Documents created directly in FI:

• DR: Customer invoice (i.e. penalty invoice)

• DG: Customer credit memo

• DZ: Customer payment and residual items

• F1, F2, F3: Migrated documents: (range: 9600000001 to 9699999999)

• Other receivables (created in G4P box, i.e. fixed assets sales)


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Research – Customer analysis (DN)

AR Document NumberSD-AR accounting document number is copied from the billing document number.Example:

F2 Invoice 1130000001 (SD document)2A Invoice 1130000001 (AR document)

FI-AR accounting document number will have their own standard number range per company code/document type. Example: DR 5540000001 to 5549999999 DZ 5550000001 to 5559999999


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One number range for all product related documents (SD-AR):

Invoices 2A

Debit notes 2C, 2N

Credit notes 2B, 2G, 2M

Affiliate invoices 2K


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One number range for penalty invoices (DR) created directly in FI-AR.

Other receivables created in G4P (e.g. fixed assets sales) will have their own number range.

(Master Data Team will maintain these customers)

Separately, internal documents (i.e. residual items, payments, cancelations) will have their own standard number ranges.


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Research – Customer analysis (N)

Dunning Types:Open Items List Notification (corr. Type >CORR)

Overdue Notification (corr. Type >DUNN)

Penalty Notification Including at month-end monthly Official Penalty letter (corr. Type >PENAL)

Account Statement dunning tool (corr. Type >RECON)

Credit Limit Notification (Credit Limit Notification case for RD’s is not approved yet to be fixed in AR SOP, corr. Type >CLIMIT)

Customers receive messages from mySAP system according external e-mail addresses in Customer Master Data >> F5P box >> XD03 >>


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Research – Customer analysis (N)


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Research – Customer analysis

Helpful transaction to check Customer Line Items:FBL5 - Display customer line items;FD11 - Customer account analysis;FB04 - Customer Document - Display Changes;ZFDDF - Displaying Due Date Forecast;ZFOVERDUE - Days Overdue Analysis;F.23 - A/R customer account balances;

XD03 - Display AR & SD customer master dataZFCUSTADDR - Display List of customer address;OV51 - Display Customer Master Record Changes;ZCUSPE - Customer Master Report;OV50 - Customer Master Data Comparison;

FD33 - Customer Credit Record Display;


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Daily Reports

KA ReportSRD ReportAging Report (still in process)Weekly Overdue Report


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Daily Reports

KA Report structure: Credit Report for KA > Summery data; Credit Limit & AR > FDK43 (after Reorganization

of Credit Data in F5P in order to avoid incorrect data bwt. F6P&F5P);

Sales Value > Summery data; Sales Value details > ZFREORG details

per documents (accounting for this docs not generated yet);

Report KA -26 02 2008.xls


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Daily Reports According COR process for NAs in E8P box AR had to

provide Manual Credit Management via daily KA Report because GIT data in Credit management Reports and for Automatic Credit Checked was incorrect

In F5P Credit Management Reports & Credit Check works correctly (Sales Value (GIT) data included in credit Balance).

For NA in mySAP maintained Risk Category > RU1 based on Credit Limit check.

KA Report needed if Credit limit is exceeded and according Internal Control requirement Order

release must be approved by managers


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Daily Reports

SRD Report structure: Summery; Totals per Customer Groups (analysis via FDK43 >

Credit management Master Data List > choose variant OR create your own);

Line Items details per Customer Groups (analysis via FBL5 > choose variant OR create your own);

SRD Credit Report 26 02 2008.xls


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Daily ReportsWeekly Overdue Report : Report (summery level/Average data per customer

groups)

Summery (consolidated data for week)

Inputs (overdue details via ZFOVERDUE)

Overdue Analysis_22.02.08


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Daily Reports

Weekly Overdue Report :Basic report principals : In Overdue Report data are shows separately (Debit &

Credit). Debit data >> Uncovered Overdue in details for particular periods, Credit data > in summary level),

Report based on daily overdue amounts per customers (ZFOVERDUE) more than 1 days, because according all standard reports, due items are included in total overdue amount,

If overdue amount in negative > Credit balance on customer account > No overdue shown in report (i.e. not cleared incoming payments, credit notes, customer returns, etc.),


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Monthly ReportsMain Tasks for AR:

Ensure all Accounting document created (SD to FI module comparison via VFX3, ZV88 VFX3 (SD -> AR interface);

In case if not: AR create artificial posting with the following reverse to report monthly Sales correctly;

Ensure customer correspondences are generated and sent to customers (e.g. balance confirmation, OI list)

Monitor, analyze and age open deductions and unapplied cash Follow-up on credit balances in customer accounts Ensure management reports are generated Ensure that all payment orders are cleared (if F110 is used)

Balance Sheet Review: Reconcile AR Trade accounts between F5P and G4P Ensure that posting period is closed on WD 3 Run batch program “Populating Tables for TOR/DSO”


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Monthly Reports

Reports usually generated at month-end (Global): Overdue/Aging Report (Still in process, use ZFOVERDUE)

Customer Balances in Local Currency (F.23)

Display Flexible Customer Line Items Report (Open & Cleared) (ZFFLEX)

Open Items Trend Report (ZFOPEN)

Deductions Management Reports (Overview & Detailed) (ZFDDED & ZFDED)

Payscore Report (Detailed & Monthly) (ZFDPS, ZFMPS) Payscore Comparison of Last N Months (ZFCOMPPS) Total Office Report (ZFTOR) ECD/UCD Report (ZFEU)


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Monthly Reports

Detailed Deduction Report (ZFDDED) Objective : To report payment deductions

by customer by deduction status by deduction type By group key By acct clerk / credit rep group By business area

Level of Detail: Provides line by line AND summary information; Aging or payment information can be displayed

Download of the report is available ZFDDED Sample with Aging Analysis


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Monthly Reports

Deductions Overview Report ( ZFDED)

Objective : To report on number and amount of deductions for a specified month for a customer/ range of customers for a group key (CBD teams) for business area for acct clerk for cred rep group


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Monthly Reports

Deductions Overview Report ( ZFDED)

Following selection is available open by type as of the end of specified month open by status as of the end of specified month Additions still open by type for the specified month cleared by type as for the specified month

Output by reason code groups (types) SALES: +/- damaged (05), returns (10), refused (20) PRODUCT: discount (03), pricing (30), allowance (40),

merchandising (50), price decline (55), policy (60) OTHER: uncoded (01), unexplained (02), others (70)


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Monthly Reports

Payscore Objectives

Determine customer’s intent to comply to terms of sale

Provide consistent measure for AR collection efficiency regarding term compliancy


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Monthly Reports

Payscore CalculationWhat is included? Documents cleared by a payment: Invoices (2A document type), Migrated invoices (F1 document type) Rejected payments (DD document type)

What is excluded? Invoices cleared by a credit note Debit memos Credit memos


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Monthly Reports

Payscore Calculation Customer’s actual dollar weighted average

compliancy to term (number of days) Components

- Payscore results per invoice

- Paid invoice amounts


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Monthly Reports

Payscore Calculation

Calculation Formula*

(Sum) (№ of days early or late * amount of each invoice)

(Sum) Invoices Paid


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Monthly Reports


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Monthly Reports Pay score 0 indicates that …

• customer paid on average at due date.

Positive Payscore indicates that…

• customer paid on average later than due date

Negative Payscore indicates that…

• customer paid on average earlier than due dates-> not what P&G goes for


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Monthly Reports

Detailed Payscore Report (ZFDPS)Provides Payscore for each invoice

User can select a range of data to inquire Payscore results• By Customer or Group Key or Credit Rep

Group • By Company Code, Accounting Clerk,

Business Area (if selected) • Per clearing posting date or date range


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Monthly Reports

Detailed Payscore Report (ZFDPS)Summaries available by• Customer• Accounting Clerk• Business Area (if selected)• Company’s Total (Grand total of selected data)

Steps to run the reports:• Populate Tables for ECD/UCD, RCD and Detailed

Payscore Report (find via F.99)• Generate Detailed Payscore Report (find via F.99)


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Monthly ReportsPayscore Report (Monthly - Summary by customer) ZFMPS

Provides Payscore Summary by customer per month

Steps to run the report:

Run Populating Monthly Payscore and TOR tables Batch (accounting period must be closed)

Run Payscore Report (F.99)

CUSTOMERS PAYSCORE REPORT Date : 16.02.2001 Company code : 376 Fiscal Year : 2001 Fiscal period : 01 customer term total total earned unearned number name group key payscore balance payment discount discount curr previous month 2000278646 CASA LEY, SA DE CV 204 3.38 0.00 16,265,006.25 5,786.75 0.00 MXN 2000278647 ALMACENES ZARAGOZA, SA DE 205 12.81 0.00 765,086.11 0.00 0.00 MXN 2000278777 ABARROTERA DEL DUERO, SA 281 9.99- 0.00 10,170,064.34 139,793.35 0.00 MXN 2000278960 DESARROLLO COMERCIAL ABAR 430 0.10 0.00 18,713,812.18 34,144.02 0.00 MXN 2000279946 ALMACENES GARCIA DE MEXIC 411 0.30 0.00 1,709,950.19 0.00 0.00 MXN 2000280422 SISTEMA DE TIENDAS DE AUT 831 3.29 0.00 1,290,795.16 420.82 0.00 MXN


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Monthly Reports

Payscore Comparison of Last N Months (ZFCOMPPS)

Provides information on Payscore summarized by customer

Compares Payscore results for 18 months up to end of the selected month

Steps to run the report: Run Populating Monthly Payscore and TOR tables

Batch (accounting period must be closed) Run Payscore Comparison of Last N Months (F.99)


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Monthly Reports

Total Office Report (ZFTOR) (TOR/DSO Content)

Objectives : Provide an overall management view of the

total Accounts Receivables portfolio at month-end

Provide data on legal entity as well as on customer level


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Monthly ReportsTotal Office Report (ZFTOR) (TOR/DSO Content)

9 Report Sections: Total Receivables Invoice Receivables Invoice Receivables Aging Attorney Accounts/Sales with Special Payment Terms Non-Invoice Receivables Deductions & Misc. Debit Balances – Aging Report Unapplied Payment – Aging Report Credit Memos & Misc. Credit Balances – Aging Report Rejected Payments & Misc. Charges Analysis


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Total Receivables: All items linked to master recon. account 12000001 and 12000006 (incl. rejected payments + BoE) Sum of Invoice Receivables + Non-Invoice Receivables

Invoice Receivables: Doc. type 2A & F1 and Posting Key 01 Posting key 09 with GL ind. 2 & W (Bill of exchange)

Non-Invoice Receivables: Sum of all deductions, unapplied payments & credit memos

Deductions: Debit balances that are NOT invoice Receivables (Posting keys: 02, 03, 04, 05, 06, 07, 08)

Unapplied Payments: Cash Transactions -> Doc. type: DZ Posting keys: 15, 16 (overpayments!) & 19 with GL 2&W

Credit Memos: All credit balances that are not unapplied payments

=> Determines the non-invoice Receivables


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Attorney Accounts: All accounts that contain “A” in the Customer Group Field (FD33 – Internal Data). “A” should

be maintained if customer is doubtful.

Sales with Special Payment Terms: Sales/SD invoices with payment terms above 31 days net or COD (Cash on delivery) that are

maintained in table ZFXXPTRM

Miscellaneous Charges: Transactions with posting keys 03 and 04 (e.g. bank or late payment charges).


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This is the Globally-agreed to calculation of DSO Sales value represents only doc. types 2A posting key 01 items DSO (like Payscore) is a STAR measure Evaluate the capital tied up in Receivables -> it measures the number

of days customers take to pay an invoice DSO compared with our payment terms assess compliance Measure is dependent on the quantities of orders.


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Available DSO measures: EOM (end of month) DSO BP (best possible) DSO EOM ADD (average days delinquent) Deduction DSO 3 months DSO (incl. current month) 6 months average FY average

=> DSO depends directly on sales and does not have a correct or incorrect interpretation.


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BP (best possible) DSO: Would be the result if all trade receivable were settled on their first

due date (i.e. payscore =0, no deductions, no unapplied cash, no open credit/debit notes)

EOM ADD (average days delinquent): Is a measure used to evaluate the impact of overdues on the DSO

(ratio of past overdue and sales)

=> EOM DSO vs. BP DSO shows the effectiveness of AR

=> The comparison of DSO, ADD and BP DSO shows the impact of overdue balances and documents posted to correct the customer accounts.

=> Note: EOM ADD + BP DOS ≠ EOM DSO


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Negative EOM ADD ->EOM DSO better than BP DSO: High amount of unpaid credit notes

High amount of unapplied payments: Payscore effect is not reflected this month

but at a later period


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Report is available in the AR report tree (F.99) and via the T-code ZFTOR

Design: Report extracts data from 3 tables to ensure effective response time

Currently DSO and Payscore is automatically transferred to Source 1 for SAP R3 4.5 countries

Payscore&DSO in S1 format


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Monthly ReportsTotal Office Report Sample


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Monthly Reports

ECD/UCD Report (ZFEU)Definition/ Objectives:

Tools to follow up on late payments where cash discount was deducted• off invoice or at time of payment

Report to collect UCD back from the customer• Supports work with customer to get to Terms

compliance


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Monthly ReportsECD/UCD Report (ZFEU)

What is included?Documents cleared by a payment:

Invoices (2A document type), Migrated invoices (F1 document type)Rejected payments (DD document type)Credit memos linked to an invoice (Header Reference) and cleared in the same payment process

What is excluded?Invoices cleared by a credit noteDebit memosCredit memos if not linked to an invoice (header reference) and cleared in the same payment process


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Monthly Reports

ECD/UCD Report (ZFEU)

Steps to run the ECD/UCD reports: Populated of Tables for ECD/UCD, RCD and

Detailed Payscore Report (F.99) Generate ECD/UCD Report (F.99)

Watchout: Report states offered Cash Discount only*


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Monthly Reports

Additional Reports usually generated at month-end for Russia: Credit usage report per customer account (Manual workaround: analysis available via FBL5 > use Dynamic

selection to select Debit Doc. Types and subtotal option to separate sales per Payment Term/Customer

AR Trade Report (Manual workaround: Balance Sheet Reconciliation with comparative

analysis for three Months in Excel Format)

Penalty Report (mySAP >> ZFMPN):

Reconciliation Statement (mySAP >> ZFASR>> choose simulation option just to look through the data):

Penalty Report - Old

Penalty Report - New

Reconciliation Statement


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