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SAP Solutions for Cross-Industry Name/Industry Solution NameSAP Globalization Services

Localization of SAP for Utilities Run Efficient. Run Better.

Supported by the SAP NetWeaver® platform, the SAP for Utilities solution portfolio is trusted by more than 1,000 utilities worldwide. India localization of SAP for Utilities provides a high degree of flexibility and adaptability to the state-of-the-art software (SAP for Utilities), tailored to the specific standards, processes, and challenges of diverse utilities, including power generation, transmission and distribu-tion, meter operation, and retail and services utilities. The solution covers the major Indian regulatory and business requirements such as electronic clearing scheme (ECS) mandate, late payment charges, interest computation of arrears, and security deposit.

INdIA LoCALIzAtIoN

India localization of SAP for Utilities has been designed based on the regulatory and key business needs of Indian customers. Keeping in mind the varied regulations across states and terri-tories, the solution is flexible and aims to handle subsequent major legal changes. This solution addresses requirements in the areas of billing, contract accounting, and device management.

Electronic Clearing Scheme (ECS)India Localization of SAP for Utilities supports the RBI regula-tion requirements for Electronic Clearing Scheme (ECS). The system provides for the administration of ECS Mandate amount at a Contract Account level and the required checks for the payment processing through the Direct Debit option.

Late Payment Charges (LPC)The solution supports the regulatory guideline of the applica-bility of a Late Payment Charge (LPC) on any open items of invoices unpaid in a previous period. It provides for defining the LPC as a percentage of a specific value or as a fixed amount at a state level. It also provides for defining the Delay Period beyond which LPC is applicable, the Tolerance Limits, and the exemption rules. Customer communication of the LPC can be calculated and provided in the invoice itself.

now be maintained in the system and can be defaulted at the new connection request for submission and verification. Based on the document submitted, a status is updated, which can also be used as one of the connection release criteria.

Energy AuditEnergy Audit provides the vital information base for overall energy conservation program covering essentially energy utilization analysis and evaluation of energy conservation measures. Localization solution provides such vital information including injection and consumption data, collection efficiency, and AT&C loss data at a node level in a utility network.

Billing ReversalImmaturity of utility billing systems in India results in frequent corrections at mass level. Such a scenario presents a need for a more efficient and flexible billing reversal process. Localiza-tion solution provides for a flexible selection criteria enabling an efficient mass reversal.

Amount in Local LanguagePre-printed stationary in local language is commonly used for generic text at utility bills. But the payable amount is always system generated and printed mostly in English, in figures and in words, which can be a challenge to understand for a regional customer. Localization solution provides the amount in words to get printed in local language chosen at the customer contract.

AvailabilityThe India localization of SAP for Utilities will be delivered as anadd-on for:

• IS-Utilities 600 • FI-CA 600

These enhancements would be available with SAP ECC 6.0, EHP5 and EHP 6.

LoCALIzAtIoN HIGHLIGHtS

EhP5 • Electronic clearance scheme (ECS) mandate • Late payment charges (LPC)

Prompt Payment IncentiveIndia Localization has the provision of computing an incentive to the consumer to encourage payment of utility charges well within the due date. This Prompt Payment Incentive (PPI) can be defined at a state level and is computed as a percentage of a specific value or as a fixed amount. The system computes the PPI during the invoicing run, if the previous invoice was fully cleared within the specified number of days before the pay-ment due date.

Interest on overdue ItemsWhen a customer delays a payment beyond the next billing cycle, the system provides the option to charge an interest on the previous open items. The interest payable is calculated on the total overdue amount and is charged on a slab basis, the various invoice components on which the interest would be applicable and the number of days beyond which the interest would be applicable. All this can be defined at a state level.

Security deposit EnhancementsIndia Localization of SAP for Utilities provides the user an option to update the security deposit amount based on the consumption pattern of the previous periods. In order to cater to a cross section of Utility customers, the system also offers the user to define the conditions based on which the security deposit value will be updated. The standard functionality of Interest on Security Deposit has been enhanced to meet India specific requirements such as definition of Interest at the level of State, Consumer type and Security Deposit amount. Tax Deducted at Source (TDS) on Security Deposit and related transactions.

Pro-rated Clearing optionsIn case of partial payment of an invoice by consumer, different treatments are applicable for clearing this value against the various invoice components. The standard SAP for Utilities solution provides for a flexible generic definition on the clearing options against the components of invoice. For example:

• You can settle the tax and then adjust the other components in a pre-determined order.

• You can clear all the components with an amount in the proportion of their value to the total invoice amount.

Seal ManagementSeals are placed on electricity meters to avoid misuse of pow-er. India Localization in SAP for Utilities offers a comprehensive solution for Seal Management whereby a seal is tracked through the various stages (status) of its life cycle. The system provides a flexibility to either use the pre-defined statuses or maintain user defined statuses.

The system provides for both individual processing as well as mass processing for seal generation and the subsequent activi-ties of Issue, Allocation and Removal. A report provides you with an overview of the status of the various seals.

Retrospective Change of taxRetrospective changes of Tax on Sales percentages, Govern-ment Duties and energy rates are frequent in India and the util-ity companies have to recover the difference amounts from the consumers. At the same time the reversal of invoices is not an allowed business practice in India. A consulting note (SAP Note 983341) has been released for the retrospective energy rate and tax calculation permitting.

• The revised calculation of the different components of the invoice starting from a given date, without reversing the invoices

• The printing of the correction values on the next invoice for all consumers or for groups of them are supported.

distribution Franchisee ManagementA franchisee is an entity empowered to operate a distribution and maintenance system within an identified contiguous area for a prescribed duration and collect revenues directly from consumers. Although the concept is a new one, it is catching heat very fast. India localization provides for Franchisee and service definitions and respective relationship parameters. Additionally franchisee evaluation based on the respective service efficiency results calculated as per the accepted industry standards is also provided for.

New Service ConnectionIndia localization offers seamless document submission and maintenance at the new service connection notification. Required document list for a particular customer type can

• Prompt payment incentive (PPI) • Interest on overdue items • TDS on interest on security deposit • Prorated clearing options • Seal management • Retrospective change of tax

EhP6 • Distribution Franchise Management • Energy Audit • Billing Reversal • Amount in Local currency

EhP6 Add-on: Mobile Solution • Push Messages • Transactional Message

tHE NEXt WAVE

SAP for Utilities – on Mobile devicesThe mobile industry in India has revolutionized customer communications. Due to the successful adoption of mobility services by end consumers, it has become the most effective medium to reach and communicate with customers. SMS alerts in the mobility services area are of critical importance when we look at their penetration in India. Utility companies are slowly realizing the potential and effectiveness of mobile services and smart phones. Keeping pace with the latest trends in mobile technology, SAP has undertaken initiatives to enhance its solution offerings in the area of mobile applications and iphone Apps. SAP for Utilities on smart phone (iphone) is one such offering that focuses on enriching customer service and providing an excellent customer experience. The SMS services were the first step in introducing mobile application features in SAP for Utilities. We are now expanding in the direction of iphone Apps for Utilities India.

These new solutions will help our customers realize the benefits of an enriched consumer experience where they can have the interactive communication with the utility company to raise their issues and perform the actions their complaints and more.

(13/MM) ©2013 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. National product specifications may vary.

These materials are provided by SAP AG and its affiliated companies (“SAP Group”) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries.

Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.

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(13/02) ©2013 SAP AG. All rights reserved.

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.

Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. National product specifications may vary.

These materials are provided by SAP AG and its affiliated companies (“SAP Group”) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries.

Please see http://www.sap.com/corporate-en/legal/copyright/index.epx#trademark for additional trademark information and notices.