1© 2008 Paymetric, Inc. All Rights Reserved. | Confidential do not Distribute

Paymetric SD Paymetric SD User TrainingUser Training

SAP Credit Card ProcessingPresented by

Rupesh Shringarpure

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Main focus

Authorizations

And how they relate to: Sales orders Deliveries Invoices

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Outline

Basic document flow in SD

Sales orders Authorization requests Optional adjustments to authorization requests Authorization responses Managing authorizations on sales orders

Deliveries

Invoices/Billing

Blocked documents

Authorization Reprocessing options

XiPay exception research

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Solution Overview

P C M A

Custom & LegacyCustom & Legacy

Web ServersWeb Servers

Th

eP

aym

en

t C

hain

Gap

XiPay ServerXiPay Server

XiPay Adapters

Processors

&

Gateways

Processors

&

Gateways

Acquiring BanksAcquiring Banks

Issuing BanksIssuing Banks

XiPay Cartridges

InternetFrame Relay

Extend SAP Capabilities

Modular EnterpriseIntegration

Intelligent TransactionProcessing Engine

Modular BankingConnections

A Proven Solution….

Enterprise DatacenterEnterprise DatacenterBanking

RelationshipsBanking

Relationships

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SAP

XiPay

SalesOrder

DeliveryAccountingDocument

AccountingDocument

Invoice

Settlement Run

SD FI

Authorization viaXiPay

Settlement viaXiPay

Basic Document Flow (SD/FI)

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Authorizations

Authorization Requests Authorization Request Authorization Response

Preauthorization

Manual authorization

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Authorization requests

All authorization requests are generated from the SALES ORDER, in standard SAP.

Capturing credit card information• Sales overview screen• Payment card tab on sales order

header – recommended

When will authorization occur?• Standard SAP will ONLY authorize

at “order save”

(continued..)

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Authorization requests (continued)

How much authorization is required?

• Next delivery/service value• Confirmed quantities• Material availability date

(Delivery related)• Billing date

(Non –delivery related)

(continued..)

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Authorization requests (continued)

How many Authorizations?• Multiple cards• Limit-to-values• Impact of deliveries

• Impact of invoices

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Optional Auto-Adjustments to Authorizations

Note: These are NOT part of standard SAP and are strictly OPTIONAL, requiring separate coding to enable the necessary functionality.

Authorization splitting Split for future deliveries Split for future invoices Scenarios must be predictable to be automated

Authorization inflation Inflate for values not known at time of order creation Inflate for future freight/shipping/taxes Scenarios must be predictable to be automated

Forced Authorization of all, some, or none of order items Authorization regardless of Material Availability Date or Billing date

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Authorization Responses

ALL responses are stored in the sales order Payment Card Header screen.

Authorization types: Automatic Authorization Manual (Verbal Authorization) Pre-auth (SAP Pre-authorization)

Automatic • Real-time• Immediate (typically), but can be done in background• Communication via RFC• XiPay• Processor• Issuing bank

(continued..)

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Authorization Responses (continued)

Manual• Also known as verbal authorizations• When to perform a manual authorization• Manual authorization button• Capturing the manual authorization details

Manual AuthManual Auth

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An additional kind of authorization:• Pre-auth (SAP pre-authorization)

Authorization Responses (continued)

Pre-authPre-auth

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Authorization Responses (continued)

Response types and actions : Approval

• Status: APPROVED Authorization granted No pop-ups or messages in the sales order

Non-Approval• Status: DECLINED

Pop-up message indicating authorization issue Saving the order will place it on Authorization Block

• Status: COMMUNICATION ERROR Pop-up message indicating authorization issue Saving the order will NOT place it Authorization

Block

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Managing Authorizations

Possible actions for a non-approved authorization response:

Status: DECLINED• Check status• Check text message• Contact internal helpdesk to verify known issues and communications• Uncheck “Authorization Block” manually (if applicable)• Re-save order to attempt a re-authorization

Status: COMMUNICATION ERROR• Check Status• Check text message• Contact internal helpdesk to verify known issues and communications• Re-save order to attempt a re-authorization• If RFC’s are down, this may require restart of Services on XiPay Server

NOTE: Do NOT delete an APPROVED Authorization Response!

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Sales Order screens:

Payment card tab on sales order header• Available authorizations

• Approved• Not expired• Not billed

• Unavailable authorizations• Non-approved (e.g. Declined, Comm. Error or Preauthorization)• Expired• Billed

(continued..)

Managing Authorizations(Continued)

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Managing Authorizations(Continued)

Payment card detail (from within Payment card tab)• Primary fields

• Authorization number• Auth.refer.code (XiPay transaction ID)• Authorization amount• Authorization type• Pre-authorization flag• GL account• Merchant ID• Response text• Response codes

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Payment Guarantee Procedure

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Deliveries

Each delivery requires at least ONE authorization

Delivery process will check for available authorizations on the order

When available authorizations identified, there is no update of the sales order

Relevant available authorizations CANNOT be viewed within the delivery

No payment card information is copied into the delivery, it remains in the order

“Insufficient authorization” results in delivery going on credit hold

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Invoices

Each invoice requires at least ONE authorization

Invoice process will check for available authorizations on the order

When available authorizations identified, the Sales Order is updated with a billing status against the “consumed” authorizations

Payment card information is copied into the invoice

Relevant available authorizations can be viewed within the invoice

Payment Card info on Invoice header with Authorization Details

“Insufficient authorization” results in invoice going on billing block

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Blocked Documents

Any document blocked due to payment card reasons (insufficient authorization)

• Must have the missing authorization amended to the sales order• Will typically be “visible” to the sales order upon reprocessing, thereby

automatically adjusting the amount to be authorized

T-code VCC1 (Payment Cards: Work List)• Sales orders and Deliveries

• VCC1 versus VKM1 (Blocked SD Documents) VKM1 lists all blocked documents VCC1 lists Payment Card relevant documents only

• Reprocessing options – re-authorize and release

• PCMA enhanced version of VCC1: /PMPAY/PU_VCC1 Runs as a background job Automatic authorization attempt If auth successful, will release from credit hold

(continued..)

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T-Code VCC1 vs. /PMPAY/PU_VCC1

VCC1 /PMPAY/PU_VCC1

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VCC1 SD Document List

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Blocked Documents(Continued)

T-code VFX3 (Release Billing Documents for Accounting)• Invoices• Reprocessing options – re-authorize and release• PCMA enhanced version of VFX3: /PMPAY/PU_VFX3

Runs online and as a background job Automatic authorization attempt If auth successful, will release to accounting

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T-code VFX3 vs. /PMPAY/PU_VFX3

VFX3 /PMPAY/PU_VFX3

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Transaction /PMPAY/PMENU

Paymetric PCMA

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Authorization Reprocessing Options (continued)

Implementation Decision

Preventative options:

• Re-authorize orders in background (Program RV21A010)

• Authorization Value Split user exit at time of Order Save

• Re-authorization in background during Delivery creation

• PCMA Utility: Expiring Payment Card Authorizations Re-authorizes orders with expired authorizations Batch Job Online Program /PMPAY/PU_EXP_AUTH

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Authorization Reprocessing Options

Corrective options:

• Manually re-save Sales Order – engages authorization logic

• Sales Orders and Deliveries on Credit Hold for Insufficient Authorization: VCC1

Re-authorize order and release order/delivery Std SAP transaction

VCC1 in Background Re-authorize order and release order/delivery in Background PCMA Program /PMPAY/PU_VCC1

• Billing Documents on Billing Block for Insufficient Authorization: VFX3

Re-authorize order and release billing document Std SAP transaction

VFX3 in Background Re-authorize order and release billing document in Background PCMA Program /PMPAY/PU_VFX3

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XiPay

Authorization exceptions Research (authorizations and settlement) Reporting Printing Individual Invoices Operations

• Independent authorizations• Independent settlement

30© 2008 Paymetric, Inc. All Rights Reserved. | Confidential do not Distribute

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