Collections and Disbursement PDF

Streamline Cash
Collections with SAPs

Public Sector Collection
and Disbursement (PSCD)
Cash Desk Functionality
Martin Ullmann
Ariston Consulting &
Technologies
2005 Wellesley Information Services. All rights reserved.
What Well Cover
Understanding PSCD/cash collection

Understanding Cash Desk fundamentals
Cash Desk postings
Closing process within Cash Desk
Reconciling bank statements
Enhancing Cash Desk functionality with events
Customizing guide and lessons learned
Wrap-up
What Well Cover

Cash Desk postings
Wrap-up
What Is PSCD?
PSCD stands for Public Sector Collections and
Disbursement
!
PSCD is the public sector industry solution of contract

accounting (CA)
o Application abbreviation: IS-PS-CA
o Formerly known as Tax and Revenue Management
Cash Collection Challenges

A majority of departments receive cash
!
Large volume differences throughout the organization

o Departments with high volume, i.e., business licenses
or treasurer
o Departments with low volume, i.e., fire department
Departments have different technology level, ranging
from a simple cash register to sophisticated billing and
receive systems
Many bank accounts

!
!
Departments can have separate bank accounts

Reconciliation by location codes
Cash Collection Challenges (cont.)

Different processes over the entire organization:
!
Department sends money and cash receipt list to the

treasurer office. Treasurer deposits money in the bank
account
o Feasible, if department is in the same location as the
treasurer office
Receipt + Cash
Department
Deposit
Treasurer
Cash Collection Challenges (cont.)

Different processes over the entire organization (cont.):
!
Department deposits money into the bank account and sends

cash receipt list to the treasurers office
o Timing problems! Departments do not deposit the money on
the date they send the receipts to the treasurers office
Issue
Deposit
Department
Receipt
Treasurer
Cash Desk System Requirements

Ability to support different payment processes
!
Payments against open receivables

o Selection of open items possible
o Ability to accommodate multiple payments against an
invoice or single payments against multiple invoices
o Ability to post on account
Direct postings to revenue accounts
Ability to support different payment methods

!
Payments by cash, check, or credit/debit card
Cash Desk System Requirements (cont.)

Segregation of cash received
!
!
By department or user
By payment method (cash/check/credit card)
Cash reconciliation features

!
!
!
Cash receipt register

Daily bank deposits
Approval process
Easy to use
!
!
One screen transition

Ability to user predefined account code assignments
Options Currently Available in SAP

Journal entries (FB50)
!
Cash receipts are entered with a summary journal entry

at the end of each business day
Check deposits (FF68)

!
Check deposits are entered during the business day
Cash Desk in fund management (FMCJ)
10
Options Currently Available in SAP (cont.)

11

!
Disadvantages
o Customer open items cannot be selected
o Users have to enter G/L accounts and account
assignments, like cost centers, internal orders, or
work breakdown structure (WBS) elements
o Difficult to segregate between different payment
methods (cash, check, or credit cards)
12

Check deposit (FF68)
13

Check deposit
!
Disadvantages
o Customer open items cannot be selected. Users have
to know the document number of the invoice to be
cleared
o Not possible to segregate between different payment
methods (cash, checks, credit cards)
o Users have to enter G/L accounts and account
assignments, like cost centers, internal orders, or
WBS elements
14

Funds management: Cash Desk (FMCJ)
15

Funds management: Cash Desk
!
Disadvantages
o Not possible to enter CO account assignments, like
cost centers, internal orders, or WBS elements
o Not possible to segregate between different payment
methods (cash, checks, credit cards)
16
Cash Desk Functionality in PSCD
Solution
Selection of
open
receivables
Processing of
different payment
methods
Entering of
amount or
check number
Direct postings of
payments to
revenue accounts
17
Cash Desk Functionality in PSCD (cont.)

Implementation of PSCD is the prerequisite for
Cash Desk
!
PSCD belongs to the FI-CA (Contract Accounting)

application family, with public-sector-specific flavors
o Integration to funds management (fund, funds center,
grants, commitment items)
Other FI-CA industry-specific applications are
o IS-U: Utility sector
o IS-T: Telecommunications
18
Versions and Availability of PSCD

Ramp-up
PSCD
2005
mySAP ERP 2005
Ramp-up
mySAP ERP 2004
PSCD 471
PSCD 472
SAP R/3 Enterprise
Extended
Maint.
2004
2005
2006
Extended
Maint.
2007
Dec
Dec
Mar
Dec
Dec
SAP R/3 4.6C
Dec
PSCD 461
PSCD 462
2008
19
Disadvantages of PSCD
Open items from Accounts Receivable (FI-AR)
cannot be selected
!
Open receivables have to be converted to PSCD using

contract accounts and contract objects
Limited standard reporting available

!
SAP expects that Business Information Warehouse (BW)

is used for reporting
o Standard extractors to BW are delivered
20
What Well Cover

Cash Desk postings
Wrap-up
21
Organizational Segregation
For each department, a branch is created
Within each department, you can create multiple
cash desks
Parks and
Recreation
Treasurer
Clerk 1
Clerk 2
Tip
Park
A
Park
B
Museum
Clerk 3
Create one cash desk for each employee

within a department/branch
22
Customizing of Branches/Cash Desks

IMG: Financial Accounting>Contracts Accounts Receivable and
Payable>Business Transactions>Payments>Incoming/Outgoing
Payment Processing>Cash Journal>Define Master Data for Cash
Journal
Enter Branch
and Cash Desk
Department =
Branch office
name
Employee =
Cash Desk
Name
23
Cash Collection Process Flow Chart
Daily
activities
Payments
Payments
Day-end closing steps

Cash
desk
Post
withdrawals
Close
reconciliation
key
Transfer
to FI
Bank
reconciliation
24
Financial Accounting Document Flow

Bank account
Main account
(5) 1.650
(1)
Bank account (2)
Inc. Deposit
(3)
(4) 1.650 1.650 (5) (4)
Cash Desk revenue posting

Open receivable payment
Withdrawal posting during
closing
(5) Electronic bank statements
upload
Revenue B
Bank reconciliation
400 (2)
Cash Desk
interim acc.
(1) 750
1.650 (4)
Revenue A
750 (1)
Customer
rec. account
500 (3)
(2) 400
(3) 500
25
What Well Cover

Understanding PSCD Cash Desk fundamentals
Cash Desk postings
Wrap-up
26
What Is the Reconciliation Key?

Every single document in PSCD is posted to a
reconciliation key
PSCD documents are transferred to FI by selecting
the reconciliation keys to be transferred
The reconciliation key allows Cash Desk postings
to be segregated by
!
!
!
Branch/Cash Desk
User
Date
27
Reconciliation Key Configuration

Payable>Basic Functions>Postings and Documents>Document>Define
Default Values>Maintain Rules for Reconciliation Key Default Values
Step 1: Define userspecific reconciliation
keys by PSCD
transactions
Step 2: Assign
users to
reconciliation
groups
28
Reconciliation Key Configuration (cont.)

The date, reconciliation group, and payment type
are part of the reconciliation key
The delimiter is used to segregate multiple
reconciliation keys within the same date
Reconciliation
group
Delimiter: /, A, B,
Date: 11/26/2004
Origin: 19 = Cash payment

20 = Check payment
21 = Credit card payment
29
Reconciliation Key Configuration (cont.)

Use a user exit to determine the reconciliation key
based on your specific requirements
!
Transaction: FQEVENTS
o Event 1113: Document: propose reconciliation key
Delimiter: /, A, B,
Date: 11/26/2004
Reconciliation group = location

01234 = Parks and Recreation
12222 = Clerk
33333 = Treasurer
30
Cash Desk Posting Types

It is possible to post two different types of
payments with Cash Desk
!
!
Postings with short account assignments

Postings against open receivables
o The selection of open receivables is integrated into
Cash Desk
31
Postings with Short Account Assignments

Payments directly against G/L accounts and cost
centers, internal orders, or WBS elements are
posted with short account assignments
!
!
G/L accounts and account assignments, like cost

centers, are defaulted
Advantages:
o Users can only use approved G/L account/account
assignment combinations. Usually approved by
comptrollers departments
o Users dont have to know G/L accounts and
account assignments
Disadvantage:
o Each combination of G/L account and account
assignment has to be set up
32
Customizing of Short Account Assignments

Customizing of the short account assignments is a
two-step process
1.
2.
Creation of account assignment key

o Each cost center, internal order, or WBS element has
a unique account assignment key
Creation of short account assignments
o The short account assignment is the link between a
G/L account and the account assignment key
33
Creation of Account Assignment Key

Payable>Basic Functions>Postings and Documents>Document>Define
Account Assignments for Automatic Postings>Define CO Short Account
Assignment
Account
assignment
description
The account
assignment
consists of a
key and details
CO account
assignment
34
Creation of Account Assignment Key (cont.)

Enter details, like
cost centers, orders,
profit centers, or
WBS elements
Warning
The business area of the account assignment has

to be the same as the business area of the
assigned CO object
35
Creation of Account Assignment Key (cont.)

Use the first two characters of the account
assignment key to distinguish between the
different types of CO assignment objects
Key
CO assignment objects
CC
Cost centers
OR
Orders
WS
WBS elements
PC
Profit centers
36
Creation of Short Account Assignments

Payment Processing>Cash Desk>Define Short Account
Assignment for Cash Desk Postings
Assign account
assignment key
First, enter a
short
account
assignment
Assign company
code, G/L account,
business area
37
Example Posting with Short Account Assignment
Dates and
reconciliation
key defaulted
Select payment
method
Select short
account
assignment
38
Postings Against Open Receivables

Open items from Accounts Receivable (FI-AR) cannot be
selected
Note
Only open items within PSCD can be selected

o Open items are posted against business partners and
contract accounts
Advanced posting features available
o Open item selection
o Posting on account
o Posting with automatic clearing
o Receipt printing
39
Example: Posting Against Open Receivables

Advanced
posting features
Select open
items or post
to account
Enter business
partner or
contract account
40
What Well Cover

Cash Desk postings
Wrap-up
41
Cash Desk Closing Steps

Step 1: Posting of withdrawals
!
The amount to be deposited into the bank account has to be

withdrawn
Step 2: Cash Desk closing

!
Cash Desk closing confirms the physical reconciliation of

the funds received with the payments posted
o Allows you to print a Cash Desk closing report, which
includes amounts collected and amounts withdrawn
Optional task
42
Cash Desk Closing Steps (cont.)

Step 3: Closing the reconciliation key (FPF2)
!
Payments cannot be posted to closed reconciliation keys
Step 4: Transfer to Financial Accounting (FPG1)

!
!
Postings in PSCD are NOT updated in real-time in Financial

Accounting
PSCD documents are transferred to FI by selecting the
reconciliation key to be transferred
o Tip: User exit that transfers the reconciliation key into the
reference number
o Issue: Only one document type possible (SAP promised
solution with PSCD 2005)
43
Transfer to FI: Substitution Example

Transaction OBBH or IMG: Financial Accounting>Financial
Accounting Global Settings>Document>Document Header>
Substitution in Accounting Documents
Substitution on
document header
level
Use a user
exit for the
substitution
44
Transfer to FI: Substitution Example (cont.)

*---------------------------------------------------------------------*
*
FORM UC06
*
*---------------------------------------------------------------------*
*
Copy Reconciliation Key to Reference Number field
*
*---------------------------------------------------------------------*
FORM UC06 USING XBLNR.
IF XBLNR NE BKPF-AWKEY(12).
CLEAR XBLNR.
XBLNR = BKPF-AWKEY(12).
ENDIF.
ENDFORM.
"UC06
How to implement a user exit in FI

!
See article: Improving the Fit of the Standard FI/CO

System to Your Sites Specific Business
Requirements with User Exits, Enhancements, and
Events in FI/CO Expert (06/2002)
45
What Well Cover

Cash Desk postings
Wrap-Up
46
Bank Statement Reconciliation Methods

Method 1: Cash Desk transactions are transferred to
FI after upload of electronic bank statement (EBS)
!
Most common method

o Usually performed by treasurers department
Additional clearing process necessary after transfer of
transactions to FI
o Manual clearing (transaction F-03)
o Automatic clearing (transaction F-12)
47
Bank Statement Reconciliation Methods (cont.)

Method 2: Cash Desk transactions are transferred to
FI before upload of EBS
Amount corrections only possible via journal entries
! Scenario: A department transfers the Cash Desk
transactions to FI and forgets to deposit the funds in the
bank account
o Posting date of the Cash Desk transaction transfer is
before the posting date of the EBS deposit transaction
o Cash movements occur before the funds are in the
bank accounts
o Average daily cash balance is incorrect and
Issue
therefore the monthly interest income allocation is
also incorrect
!
48
FI-Document Flow
Bank account
main account
(5) 1.650
Bank account
inc. deposit
(4) 1.650
1.650 (5)
(1)
(2)
(3)
(4)

Open receivable payment
Withdrawal posting during closing
(5) EBS upload
How to simplify bank

reconciliation?
Revenue B
400 (2)
Cash Desk
suspense
(1) 750
1.650 (4)
Revenue A
750 (1)
Customer
rec. account
500 (3)
(2) 400
(3) 500
49
Automating the Clearing Process (F-12)

The location in the reconciliation key is transferred
to the assignment field (BSEG-ZUONR)
The location key from the bank deposit slip is
transferred to the allocation fields during the EBS
upload (see flow on next slide)
50
Automating the Clearing Process (F-12) (cont.)
$1.650 Cash Desk

payments with location
01234
0 1 2 3 4 / 0 4 1 1 2 6
Reconciliation group = location

01234 = Parks and Recreation
12222 = Clerk
33333 = Treasurer
Bank account
inc. deposit
1.650
550
300
1.650
$1.650 bank deposit from

location 01234
300
01234 1236786534
Bank deposit slip
51
What Well Cover

Cash Desk postings
Wrap-up
52
User Exits in PSCD

User exits in PSCD are called events
You can access all available events with transaction
FQEVENTS
!
!
Currently hundreds of events available

Events allow you to:
o Default the reconciliation key
o Validate the payment entries
o Change the account determination
o Influence the receipt printing
o Create user-defined authorizations
53
List of Useful Cash Desk Events

Event
Description
1113
Document: propose reconciliation key
0050
Document: check G/L item
6040
Cash Desk: print receipts
6046
Cash Desk: create closing
6130
Cash journal: change account determination
6140
Cash journal: additional checks
6150
Cash journal: default values
6160
Cash journal: check amount authorizations
54
What Well Cover

Cash Desk postings
Wrap-up
55
Cash Desk Customizing Guide

Customizing of branches/Cash Desk
!
See Slide 23
Customizing of reconciliation key

!
See Slide 28
Account assignment key customization

!
See Slides 34 37
General settings for cash payments

!
See Slide 57
Default values for deposits and withdrawals

!
See Slide 58
56
General Settings for Cash Payments

Payment Processing>Cash Desk>Define Specifications for Cash Desk
Print options
for receipts
Company
code and
value dates
Document
types and
accounts
57
Default Values for Deposits and Withdrawals

Payment Processing>Cash Journal>Default Values for Posting
Cash Desk
Clearing
accounts and
branches
Accounts for
deposits and
withdrawals
58
Lessons Learned from an Implementation

Different departments must not share the same
location key
!
Issue separate location key and deposit slips for each

department
Centralize Cash Desk data entry for departments with

low volume
Consider implementation of a shadow transaction for
the daily Cash Desk closing process
59
Shadow Transaction for Cash Desk Closing

Enter
reconciliation key
Step 1: Post
withdrawals
Step 2: Close
Cash Desk and
print forms
Step 3: Close
reconciliation
key
60
What Well Cover

Cash Desk postings
Wrap-up
61
Resources
FI/CO Expert (06/2002): Improving the Fit of the
Standard FI/CO System to Your Sites Specific
Business Requirements with User Exits,
Enhancements, and Events
SAP PSCD documentation:
!
!
http://help.sap.com/
SAP for Industries>SAP for Public Sector
Public sector white papers:

!
http://www.sap.com/industries/publicsector/brochures/
index.aspx
62
7 Key Points to Take Home

The implementation of PSCD is a prerequisite for
using the Cash Desk functionality
Create a unique Cash Desk for each user within a
department
Use user-specific reconciliation keys
Issue unique location keys for different departments
Enforce that Cash Desk withdrawals and bank
deposits are done on the same day
PSCD documents are not updated in real time in FI.
The documents have to be transferred
Use events to enhance user-friendliness
63
Your Turn!
Questions?
How to Contact Me:

[email protected]
64

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Streamline Cash

Collections with SAPs

What Well Cover

Understanding PSCD/cash collection

What Well Cover

Understanding PSCD/cash collection

PSCD is the public sector industry solution of contract

Cash Collection Challenges

Large volume differences throughout the organization

Many bank accounts

Departments can have separate bank accounts

Cash Collection Challenges (cont.)

Department sends money and cash receipt list to the

Cash Collection Challenges (cont.)

Department deposits money into the bank account and sends

Cash Desk System Requirements

Payments against open receivables

Ability to support different payment methods

Payments by cash, check, or credit/debit card

Cash Desk System Requirements (cont.)

Cash reconciliation features

Cash receipt register

One screen transition

Options Currently Available in SAP

Cash receipts are entered with a summary journal entry

Check deposits (FF68)

Check deposits are entered during the business day

Cash Desk in fund management (FMCJ)

Options Currently Available in SAP (cont.)

Options Currently Available in SAP (cont.)

Options Currently Available in SAP (cont.)

Options Currently Available in SAP (cont.)

Options Currently Available in SAP (cont.)

Options Currently Available in SAP (cont.)

Cash Desk Functionality in PSCD

Cash Desk Functionality in PSCD (cont.)

PSCD belongs to the FI-CA (Contract Accounting)

Versions and Availability of PSCD

mySAP ERP 2005

SAP R/3 Enterprise

SAP R/3 4.6C

Open receivables have to be converted to PSCD using

Limited standard reporting available

SAP expects that Business Information Warehouse (BW)

What Well Cover

Understanding PSCD/cash collection

Create one cash desk for each employee

Customizing of Branches/Cash Desks

Cash Collection Process Flow Chart

Day-end closing steps

Financial Accounting Document Flow

Cash Desk revenue posting

What Well Cover

Understanding PSCD/cash collection

What Is the Reconciliation Key?

Reconciliation Key Configuration

Reconciliation Key Configuration (cont.)

Origin: 19 = Cash payment

Reconciliation Key Configuration (cont.)