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Company

LOGO

Payment Cards

Sales & Distribution

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Topics

1. Introduction 

4. Payment Cards in Sales Orders

5. Payment Cards in Delivery

6. Payment Cards in Billing Docs.

2. Process Flow

3. Payment Card Types

7. Authorization

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Introduction

Payment Card is used for cash-free payment used invariety of business transactions, from buying goods at

local store to procuring goods and services on behalf of 

company.

Payment Cards are nowadays indispensable tocustomers and an important mode of payment for 

business.

Payment Card processing in SAP system offers a wide

range of functions in Sales & Distribution, integration of 

payment card activities into sales, delivery & billing.

Exchange of information with clearing houses for 

authorization can be set up during sales processing.

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Process Flow

In Sales & Distribution, Payment card is entered in salesorder and used throughout cycle.

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Payment Card Types

Main payment cards categories used in systemare: Credit Cards

Used for purchasing with regular billing & extended credit.

Customer CardsUsed to buy goods from specific merchant or group of 

merchants.

Debit Cards

Used to purchase with direct debit from bank account.

Procurement Cards

Issued on behalf of companies to employees for purchasing

items up to a given amount.

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Payment Card in Sales order 

In Sales order system provides option of enteringone payment card for entire amount or using

multiple cards to split amount value in case of 

credit limit being reached on single card.

System has checks to ensure that card entered

corresponds to numbering system of card

company.

System also checks for expiration date andissues warning for near term expiring cards.

A message is issued when authorization of card

is successful, on failure order is blocked.

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Payment Cards in Delivery

Delivery document does not carry any card informationdirectly.

System does check following information in delivery

relevant to payment cards:

All expired authorizations are detected and reauthorized. Any changes to delivery quantity are covered by authorizations

that were granted in sales order.

In case authorizations are not valid anymore, system

sets the status in Sales order for delivery as ‘NotApproved’.

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Payment Card in Billing

Payment Card attached to Billing header in billingdocument contains items with detailed card information

System copies this information from Sales Order and

determines

Cards to be billed from payment card plan. The order in which they are to be billed.

Billing amounts on each card in case of multiple cards.

On release of billing document to Accounting, payment

card data , billing amount & authorization information is

copied on to accounting document for settlement.

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Authorization

Authorization explained graphically below

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Authorization

Payment card interface acts as a bridge between SAPsystem and financial institution’s software.

Interface system has supports following features: Converting data from SAP system to financial institution’s

structure.

Communication protocols between payment card application

server and financial institution.

Converting data from financial institution’s structure to SAP

system structure.

Time out scenarios etc.

All major clearing houses and financial institutions are

covered for transmitting card data.