Student Accounting Workshop 2010 Materials - Day 3

Student Accounting Workshop
June 28 30, 2010
Day 3
Table of Contents
1.
Incoming Payments, e.g. Cash Desk ...................................................................................................... 3
2.
Processing Incoming Payment On Account and Impact on Account Display .................................... 7

Processing incoming payment Immediate Clearing and Impact on Account Display ....................... 8
3.
Invoicing .............................................................................................................................................. 10
June 2010
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1.
Incoming Payments, e.g. Cash Desk
Depending on the size of the institution and country-specific accounting rules, incoming payments can
be posted to one GL Account or can be segregated by payment method. The approach might be useful
if the institution has different valuation dates or uses SAP Treasury Management.
Scenario:
The institution accepts cash payments but also allows students or sponsors to pay by check or credit
cards. Cash is immediately available to the institution while it may an average of 3 days to clear a check
or 1 day to clear the credit card payment depending if authorization is done in real-time. The institution
may also want to collect statistics on how students pay.
Realization:
Based on the institutions requirements, define the type of accepted payment cards, document types
with appropriate ranges and country-specific payment methods.
Cross-Application Components > Payment Cards > Basic Settings >
Assign Checking Rule
These are supplied by SAP but you can write
institutional specific ones, too.
Maintain Payment Card Type
Note IMG view: Make Security Settings for Payment Cards

*** Please consider encryption of card data ***
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Financial Accounting > Contract Accounts Receivable and Payable > Basic Functions > Postings and
Documents > Document > Maintain Document Assignments>Document Types
Financial Accounting > Contract Accounts Receivable and Payable > Business Transactions > Payments
> Incoming/Outgoing Payment Creation >
Define Payment Methods
Example: Details for Payment Method 1.

The master data required for the BP
depends on the institutions
requirements. If a student pays by
cash, the institution has the money.
However, with an incoming check, you
want to have the BPs address on file
in case the check is returned due to
insufficient funds. If the institution
works with bank collections then Bank
Details are required, etc.
Assign payment methods to the company code: Define Specifications for Paying Company Code
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When using cards, also configure relevant accounting information:

Payment Cards > Define Accounts for Payment Card Institute
This is just an example. Depending on how card payments
are settled, interim GLs might be useful. When accepting
payment cards at cash desk and biller direct, it might be
useful to code FICA event 6130 to reassign the cash desk
clearing account.
Finally, configure the Cash Desk in: Contract Accounting > Business Transactions > Payments >
Processing Incoming and Outgoing Payments > Cash Desk/Cash Journal
Maintain Specifications for Cash Desk/Cash Journal
Activating Cash Journal provides more
controls and reporting.
Define Cash Desk Clearing Accounts
Define Document Type for Payment Category
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Define Master Data for Cash Journal
Cash Journal: Define Accts for Exp./Rev. Diffs from Cash Payments
Cash Journal: Specifications for Posting Cash Desk Deposits and Withdrawals
Define Bank Clearing Accounts for Payment

Lots
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2.
Processing Incoming Payment On Account and Impact on Account

Display
SAP allows an institution to post incoming payments on account without clearing any open items.
Some institutions prefer that because it speeds up the process for the cashiers and provides an explicit
record of the payment, especially, when combined with coding appropriate FICA events. This is also
useful when your open items are a mix of tuition related charges and other charges, e.g. Parking Tickets,
which are unrelated to a specific academic term.
Accepting a cash payment on account, the cashier needs to enter only the BP number and amount and
click on icon Post.
With appropriate
configuration in Open
Item Management the
cashier doesnt need to
enter anything here.
The account display below shows 3 on account payments:

A meaningful text can
be shown here which
facilitates answering
student inquiries
Note: If the institution accepts incoming payments in anticipation of future charges, i.e. an
overpayment, then add a payment lock otherwise, the incoming payment may be refunded in the next
outgoing payment run.
The above process requires that the institution regularly executes the Automatic Clearing. Normally,
this is needed anyway to clear financial aid credits or tuition refunds.
Account Balance Display
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Despite clearing, it is easy to see the

incoming payments.
Processing incoming payment Immediate Clearing and Impact on Account Display

In the following example, a $10 cash payment is processed using the icon Post Online
The system presents the open items of $3,094.00:
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Since the student only

makes a partial payment
the cashier has to adjust the
Cross Clearing field before
saving.
The payment amount is immediately applied to the open item. Without drilling down to the
document it is not immediately apparent what happened. Many end-users do not like drilling down.
This is the $10 cash payment
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3.
Invoicing
Scenario
The institution wishes to send an invoice to the student. The invoice can be printed or sent as an e-mail
attachment. SAP provides two sample forms based on Correspondence Type P004:
ZIS_HER_CM_INVOICE (Smartform) (Form Class: FMCA_INVOICE)
ZISHERCM_SAMPLE_STUDENT_BILL (Adobe)
Example: This student was charged for a Program and a Meal Plan
Using the SAP supplied sample SmartForm, the invoice looks like this:
This is just an example.

Some institutions prefer to use the
Account Statement (Correspondence
Type 0002) to show opening and
closing balances.
Instead of showing the Due Date,

the institution may want to show the
Posting Date, especially, when billing
monthly.
In this case, you may want to change
this text as follows: Please pay the
total amount by July 15, 2010 to
avoid late payment charges.
The correspondence tab of the Student File is also updated:

June 2010
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The students Contract Account has to contain the appropriate parameters:
Configuration: *** there is not very much configuration required:

Contract Accounts Receivable and Payable > Business Transactions > Invoicing
Maintain Number Ranges for Invoice Creation (assuming you want invoice numbers)
Define Invoice Types
Note: For Sponsor Billing, the Correspondence Type can be used with a different Application Form.
Each open item is associated with a beneficiary who could be identified on the invoice.
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4.
Example Questions from Implementation Projects
Scenario 1
A Contract Account has two open items with different due dates that are going to be included
in the same invoice in Transaction FMCAM2. Is it possible to align the due dates of these
open items while you run the program? Is there any Event available for this? Or, alternatively,
to assign a deferral date that would align the date that the payment is expected for both open
items?
Answer
You can assign a deferral date to an open item as a manual process. In the Account Balance
display, use the menu path: Environment>Document>Change
Scenario 2
How can I correct an invoice for a student?
Answer
One place when you can correct an invoice is in the fee calculation process, when you
generate the invoices one by one. There is a place where a manual adjustment may be made.
That will generate another document if the adjustment changes the amount of the invoice.
Scenario 3
Can I show other charges and/or instalments on invoices generated through Transaction
FMCAM2?
Answer
The invoicing function is used to inform students of all receivables for which they are liable. All
open items on the Contract Account will be included in the invoice including other charges and
installments.
Scenario 4
Is it possible to modify the due date of the documents to be included in an invoice with
Transaction FMCAM2? Is there an Event that can be used for this?
Answer
The Due Date of a document can be changed within the Account Balance display. Select the
relevant document and use the menu path: Environment>Document>Change
June 2010
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Student Accounting Workshop

June 28 30, 2010