SD2019: Payment Card Processing V 1.

India SAP CoE, Slide 1

Payment Cards…?
The Payment Cards can be ,

The authorized user hands the merchant a credit

card in exchange for goods and services, and the
Credit Cards
merchant charges the amount against the line of
credit the issuing bank as established

Debit cards pull funds directly from the authorized

Debit Cards user’s checking account, not a line of credit.

Cash cards are purchased for a fixed amount and

Cash Cards recharged as the consumer uses them.

Procurement cards are used in B2B transaction

tailored to card holder’s internal purchasing process
Procurement Cards such as Purchase Orders.

India SAP CoE, Slide 2

Payment Card Processing
1 PrepareMe

2 TellMe

3 ShowMe

4 LetMe

5 HelpMe
India SAP CoE, Slide 3
Payment Card Processing
1 PrepareMe

2 TellMe

3 ShowMe

4 LetMe

5 HelpMe
India SAP CoE, Slide 4
Purpose

The mode of payment through payment cards is

frequently replacing cash

It is increasingly becoming valuable option for

business to deal with the new payment modes

Payment cards have a wide & increasing usage in Sales

and Distribution, Retail point of sale, Financial
Accounting, and Internet commerce

India SAP CoE, Slide 5

Use

Provide payment solution in place of cash

Payment card processing offers the businesses

efficiency, value and total peace of mind

Integrated with the existing accounting systems

for online processing

India SAP CoE, Slide 6

Challenges
Addressing the issue of payment card processing in
a variety of business environments

Thorough integration of payment card processing

with changing business requirements

Secure online Transactions with payment cards

Protect huge business loss due to inherent threats

in online processing

India SAP CoE, Slide 7

Payment Card Processing
1 PrepareMe

2 TellMe

3 ShowMe

4 LetMe

5 HelpMe
India SAP CoE, Slide 8
Business Partners in Payment Card Processing
The person whose
name is on the
credit card They have agreed
to accept deposits
generated by credit
card transactions
on behalf of
merchant

Cardholder

Issuing bank Merchant´s bank

Bank that
supports/provides
actual credit cards The financial institution that
receives authorization call
from merchant. Also known
Clearing house as Clearing house

Vendor or store that requires

credit card authorization before
goods or services can be
issued to cardholder

Merchant
India SAP CoE, Slide 9
Payment Card Processing - Phases

Authorization: The merchant gaining approval or denial for a particular

transaction

Settlement: A series of steps in which the Merchant’s Account receives

money from Cardholder’s line of credit.

India SAP CoE, Slide 10

Authorization Phase
• Merchant acquires credit card
information

• Calls Acquiring Processor for

Authorization
Merchant
Card Association • Acquiring processor contacts
Issuing Bank

• Issuing Bank sends authorization

/ rejection to Card Association

• Card association transmits

Clearing House Issuing bank answer to Acquiring Processor
(Acquiring Processor)
Query • Acquiring Processor transmit
answer to the Merchant
Response
• Merchant prints sales receipt for
signature or denies sales

India SAP CoE, Slide 11

Settlement Phase

•Merchant confirms goods with

Fulfillment notification
Merchant Issuing bank
•Card information sent to
Acquirer by Merchant Bank

•Acquirer sends data to Issuing

Bank

•Card is charged

•Issuing Bank transfers money

to Merchant’s account

Merchant´s bank Clearing House

(Acquiring Processor)

India SAP CoE, Slide 12

The Process flow in Payment Card Processing
Payment card plan attached to
header of Order/Contract

Sales Authorization
Order/Contract Clearing
house

Delivery Check validity

for authorization

Payment card data copied to billing doc. from order / contract

Payment card / authorization data forwarded to FI when billing doc. is released Settlement
Transaction involving cards can be posted to different G/L account

Accounting
Billing Authorization
document
information

India SAP CoE, Slide 13

Payment Card Processing from an External System

In this form of processing the

Authorization point of sale is the physical
location at which the goods are
paid for (usually the cash
Clearing house register)
Point of Sale
At this point no sales or
shipping documents are
created

When using point of sale

systems, authorization is
Settlement carried out from an external
system
Authorization Accounting
Billing
information document Relevant data is imported into
the R/3 System, where a billing
document is created

India SAP CoE, Slide 14

Transmitting Data to Clearing Houses

Clearing houses issue authorizations

SAP standard interface
for sales orders/contract and carry out
settlement.

An interface to external systems

allows the merchant to transmit and
receive data.
Converter
SAP has defined a standard payment
card interface that the merchant can
use to create protocols for clearing
houses.

Clearing house

India SAP CoE, Slide 15

Payment Card Processing
1 PrepareMe

2 TellMe

3 ShowMe

4 LetMe

5 HelpMe
India SAP CoE, Slide 16
Prerequisites

• A third party software is required to carry out authorization.

• The system relies on settings in Customizing for payment cards to
determine how and when to carry out authorization.

Clearing House

RFC Interface e.g.Delego to

SAP R/3
carry authorisation

Bank

Third party software

India SAP CoE, Slide 17

Payment Card data in Customer master

Click to
maintain
payment card
details

Blockin Default
g Payment
reason card

Card Type Category

(Visa,Amex etc) Credit, Debit
,etc.)

Transaction code: XD02

India SAP CoE, Slide 18
Payment Card details in Contract document

The contract header data contains the payment card details which are taken
from the customer master
Transaction code: VA41

India SAP CoE, Slide 19

Payment Card Authorization details in Contract

After saving the contract we can check for the authorization status (in change mode).
Also, note the card details are encrypted for security reasons
Transaction code: VA42

India SAP CoE, Slide 20

Payment Card values in Invoice

In billing document header, we can notice the billing value equals authorized
Amount, which is posted to the G/L account

Transaction code: VF02

India SAP CoE, Slide 21

Accounting Document

India SAP CoE, Slide 22

Payment Card type - Configuration

IMG-> Sales and Distribution-> Billing-> Maintain Payment card types

India SAP CoE, Slide 23

Payment Card Category - Configuration

IMG-> Sales and Distribution-> Billing-> Maintain card categories-> Determine card categories

India SAP CoE, Slide 24

Assign Payment Card Plan - Configuration

IMG-> Sales and Distribution-> Billing-> Payment cards-> Maintain Payment card plan types

India SAP CoE, Slide 25

Account Determination - Configuration

IMG SD Billing Payment cards Authorization and settlement

Maintain clearing house Account determination Assign G/L accounts.

India SAP CoE, Slide 26

Clearing House Assignment - Configuration

IMG SD Billing Payment cards Authorization and settlement Maintain

Clearing House Set Authorization/Settlement Control per Account.

India SAP CoE, Slide 27

Payment Card Processing
1 PrepareMe

2 TellMe

3 ShowMe

4 LetMe

5 HelpMe
India SAP CoE, Slide 28
LetMe
Transactions
VA01 Create Sales Order

VA02/VA42 Change mode for Order/Contract

VA41 Create Contract

Navigate to Enter Payment card details

GotoHeaderPayment Card

Navigate to Check credit card authorization

GotoHeaderPayment Card in status
change mode
VF01 Create Billing

VF02 Change mode

India SAP CoE, Slide 29

LetMe
Exercise:
Use Data in IDES.

Company code:1000;Sales Org:1000;Division:00.Shipping

pt.:10;Plant:1200;WM:012;Customer 1325;Material:R-1001;Credit card: VISA
4100000000000001;Account receivable for payment
card:146500;Intermediate account:113105.Sales doc. Type: OR.

Check customer master for 1325 and enter Payment card details if not
present.
Create Sales order for material R-1001 for qty 2.
Create delivery. Create Transfer Order. Create Billing and check accounting
doc.
Payment Card Settlement: Use Tcode: fcc1.For acct 146500;doc. Type: AB
Posting: Current date; Select detail log and Update run. Execute.

India SAP CoE, Slide 30

Payment Card Processing
1 PrepareMe

2 TellMe

3 ShowMe

4 LetMe

5 HelpMe
India SAP CoE, Slide 31
Additional Information
Establishing Copy Control for Credit Memo Request
 For standard returns document, copy control can be used to copy card
details from sales order (OR) to the returns sales document (RE).

 To arrest the difficulties in the transfer algorithm and the copying

requirements algorithm between service contract (WV) and credit memo
request (CR) enhancement is required in standard algorithm for this
document combination (051),and the standard copying requirement
algorithm (001).

Payment card details Credit Memo

Contract Request

India SAP CoE, Slide 32