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Position the Commission System within SAP'sInsurance SolutionIdentify the elements and functions in theCommission SystemStory of Insurance Inc. SAP FS-CS SolutionRequirements of Insurance IncBusiness scenarios of Insurance IncThe Establishment of a New Distribution Channel
Citation preview
Bernard
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© SAP AG FS320 0-1
SAP AG 2004
FS320 FS-CS Commission Management
THE BEST-RUN BUSINESSES RUN SAP
© SAP AG 2005
FS320FS-CS Commission Management
SAP for Industries 2005/Q2 50075021
Bernard
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© SAP AG FS320 0-2
SAP AG 2004
Copyright
Copyright 2004 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.
Microsoft, Windows, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation. IBM, DB2, DB2 Universal Database, OS/2, Parallel Sysplex, MVS/ESA, AIX, S/390, AS/400, OS/390, OS/400,
iSeries, pSeries, xSeries, zSeries, z/OS, AFP , Intelligent Miner, WebSphere, Netfinity, Tivoli, and Informix are trademarks or registered trademarks of IBM
Corporation in the United States and/or other countries. Oracle is a registered trademark of Oracle Corporation. UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group. Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or
registered trademarks of Citrix Systems, Inc. HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®, World Wide Web
Consortium, Massachusetts Institute of Technology. Java is a registered trademark of Sun Microsystems, Inc. JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and
implemented by Netscape. MaxDB is a trademark of MySQL AB, Sweden. SAP, R/3, mySAP, mySAP.com, xApps, xApp, 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 in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.
These materials are subject to change without notice. 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
Bernard
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© SAP AG FS320 0-3
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.
Bernard
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© SAP AG FS320 0-4
SAP AG 2004
Course Goal
Target Group
Content of this training course
Course overview [FS320]
Content:
Overview
Bernard
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© SAP AG FS320 0-5
SAP AG 2004
Course Goal:
Course participants will gain an insight into the functionality of Commission Management.
At the end of the course participants will be able to configure simple commission models.
Course Goal
Bernard
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© SAP AG FS320 0-6
SAP AG 2004
Target Group
Target group:• Project team managers and members
• Users from relevant departments
Duration: 4 days
Bernard
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anjua
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© SAP AG FS320 0-7
SAP AG 2004
Position the Commission System within SAP'sInsurance Solution
Identify the elements and functions in the Commission System
At the conclusion of this unit, you will be able to:
Unit Objectives
Bernard
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© SAP AG FS320 0-8
SAP AG 2004
Course Overview
LiabilityLiability
Commission CaseCommission Case
ParticipationParticipation
Due datesDue dates
BonusBonus
Flat Rates and GuaranteesFlat Rates and Guarantees
Closing / Closing / SettlementSettlement
StoryStory
Commission contractsCommission contracts
OrganizationOrganization
Business PartnerBusiness Partner
Generating ProgramGenerating Program
Business Objects andBusiness Objects andActivitiesActivities
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing ReportingReporting
Stor
yM
aste
r Dat
aPr
epar
atio
nC
omm
issi
on
Cas
e
Com
mis
sion
Cas
ePe
riodi
c Ta
sks
Info
Bernard
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© SAP AG FS320 0-9
SAP AG 2004
Info - chapter [not part of this training course]
Business Business DataData ToolTool
Additional informative Additional informative literatureliterature
......
......
......
Bernard
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© SAP AG FS320 0-10
SAP AG 2004
Part 1 [implementation of FS-CS ]
LiabilityLiability
Commission CaseCommission Case
ParticipationParticipation
DueDue datesdates
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing
Commission Commission contractscontracts
OrganizationOrganization
Business Partner Business Partner
Mas
ter D
ata
GeneratingGenerating ProgramProgram
Business Business ObjectsObjects and and ActivitiesActivitiesPr
epar
atio
n
Com
mis
sion
Cas
e
Bernard
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© SAP AG FS320 0-11
SAP AG 2004
Part 2 [ daily task‘s]
„dai
lyta
sk‘s
“
„dai
lyta
sk‘s
“
Commission Commission contractscontracts
OrganizationOrganization
Business Partner Business Partner
Commission CaseCommission Case
Commission Commission DocumentDocument
AnalysesAnalyses
Bernard
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© SAP AG FS320 0-12
SAP AG 2004
Part 3 [Periodic Tasks – Commission Clerk]
BonusBonus
FlatFlat RatesRates
Perio
dic
Task
s
ClosingClosing
SettlementSettlement
GuaranteesGuarantees
Bernard
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© SAP AG FS320 0-13
SAP AG 2004
Part 4 [Reporting]
Commission Commission AccountAccount
WebWeb--Access [Access [Comm.receipiantComm.receipiant]]
Rep
ortin
g
SAP Business SAP Business WarehouseWarehouse
......
Management Report‘s Management Report‘s
Bernard
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© SAP AG FS320 1-1
SAP AG 2004
Story of Insurance Inc.
SAP FS-CS Solution
Contents:
Story
Bernard
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© SAP AG FS320 1-2
SAP AG 2004
Course Overview
LiabilityLiability
Commission CaseCommission Case
ParticipationParticipation
Due datesDue dates
BonusBonus
Flat Rates and GuaranteesFlat Rates and Guarantees
Closing / Closing / SettlementSettlement
StoryStory
Commission contractsCommission contracts
Organization Organization
Business PartnerBusiness Partner
Generating ProgramGenerating Program
Business Objects andBusiness Objects andActivitiesActivities
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing ReportingReporting
Stor
yM
aste
r Dat
aPr
epar
atio
nC
omm
issi
on
Cas
e
Com
mis
sion
Cas
ePe
riodi
c Ta
sks
Info
Bernard
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© SAP AG FS320 1-3
SAP AG 2004
Positioning• Business scenarios of Insurance Inc.
Introduction• Requirements of Insurance Inc.
SAP FS-CS Commission Solution• Short Overview• FS-CS Customers
Introduction
Bernard
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© SAP AG FS320 1-4
SAP AG 2004
Automatedprocesses
EfficiencyEasy
maintainance
Encapsulation
Performance Flexibility
Technical Aspects
Drilldownreporting
Webreporting
Transparancy
Consolidation
New products
Market Challenges
New markets
New distributionchannels
Calculation of all types of
commissions & incentives
Steer & promotebusiness
Corporate Flexibility
What did we
expect?
Requirements of the Insurance Inc.
Bernard
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© SAP AG FS320 1-5
SAP AG 2004
Positioning• Business scenarios of Insurance Inc.
Introduction• Requirements of Insurance Inc.
SAP FS-CS Commission Solution• Short Overview• FS-CS Customers
Positioning
Bernard
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© SAP AG FS320 1-6
SAP AG 2004
This channel is to be used for distributing the newlife insurance product called<LIVEPLUS>.
Product /
Distributio
n
Channel
A new distribution channel called <The South Region> is to beset up.
The Establishment of a New Distribution Channel (1)
Bernard
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© SAP AG FS320 1-7
SAP AG 2004
For policies that are brokered, an acquisition commission of 4% of the remuneration basis (=90% of the insurance total) is to be paid.
Remuneration
For subsequent deals (for example, increases), only a commission of 2.5% (change to basis) is to be paid.Cancellations/reductions of the insurance cover (per policyholder) are to trigger an automatic cancellation/partial cancellation.
1. Within the first year -> 100 %2. Within the second year -> prorated3. From the third year -> Commission is earned
Managers who acquire the broker participate during the first year of the agent's activity with 5% of the broker's remuneration.
The Establishment of a New Distribution Channel (2)
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© SAP AG FS320 1-8
SAP AG 2004
As start-up assistance, an allowance for office costs of 200 - 800 EURO per month can be granted (indirect agreement).
Periodic
Remuneration
In addition, a negative flat-rate amount of 100 EURO per month is billed for IT equipment provided.
Insurance Inc. guarantees its new brokers a minimum income during the first year of 5000 EURO per month (for brokered life insurance products).
If the sales target (individually agreed upon) is met, a bonus based on the brokered sales is paid.
The Establishment of a New Distribution Channel (3)
Bernard
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© SAP AG FS320 1-9
SAP AG 2004
Remuneration due to brokers needs to be disbursed using either SAP FI or SAP FS-CD.
Disbursement
Remuneration due to company employees (managers) needs to be disbursed using SAP HR.
The Establishment of a New Distribution Channel (4)
Bernard
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© SAP AG FS320 1-10
SAP AG 2004
The broker is to be provided with various evaluations (commission account).
Reporting
In addition, FS-CS is to support various evaluations (such as products sold and sales in the different regions)Commission-relevant data must also be transferred from FS-CS to SAP BW for sales controlling purposes.
Retroactive effect on the remuneration process
The Establishment of a New Distribution Channel (5)
Bernard
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© SAP AG FS320 1-11
SAP AG 2004
Positioning• Business scenarios of Insurance Inc.
Introduction• Requirements of Insurance Inc.
SAP FS-CS Commission Solution• Short Overview• FS-CS Customers
SAP FS-CS Commission Solution
Bernard
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© SAP AG FS320 1-12
SAP AG 2004
New business partnersare created
New standard agreements arecreated
The new standardcontracts represents thenew distribution channel
The implementation of a new distribution channelas scenario (1)
Bernard
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© SAP AG FS320 1-13
SAP AG 2004
New organizationalunits are created
New individual contractsare created and assignedto positions in theorganization
To steer sales production, conditions are altered
The implementation of a new distribution channelas scenario (2)
Bernard
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© SAP AG FS320 1-14
SAP AG 2004
New characteristics aremade known to thesystem
The new conditions aremaintained in thestandard contracts
The new attributes reflect thenew product in the commissionprocess
The introduction of a new product as scenario
Bernard
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© SAP AG FS320 1-15
SAP AG 2004
Market conditions arereflected in commission and production data
The reports show which agent recievedor produced- how much- of which type- and when
The analysis stresses- opportunities/risks- deviations
To detect opportunities as scenario (1)
Bernard
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© SAP AG FS320 1-16
SAP AG 2004
The results of the analysishas an impact on theconditions of contracts
Incentives and bonusses arechanged with regard to- organization- bonus base (profitability, production)
The remuneration is changesin regard to- amount- due dates
To detect opportunities as scenario (2)
Bernard
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© SAP AG FS320 1-17
SAP AG 2004
Efficiency...● Manual processes reduced● Master and transaction data maintanance made easy
Flexibility...
● Calculation rules / methods quick to amend● Interfaces easy to configure
Transparency ...● Commission accounts allow all kind of analysis● Contracts and organization versionalized
Corporate flexibility ...● Quick reactions in an ever changing markets● Calculation of any commission & incentive
Four major advantages characterize the FS-CS...
Bernard
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© SAP AG FS320 1-18
SAP AG 2004
FS-CS is part of our sales solution...
Enterprise Management Strategic Enterprise Management Business Analytics Business Intelligence &
Decision Support Accounting
Customer Relationship Management Customer Engagement Business Transaction Contract Fulfillment Customer Service
Sales Sales Planning Account & Contact Management
Acquisition & Sales Management
Commission Management
Claims Claim Notification Proactive Claims Management Claim Handling & Adjustment Claims Accounting
Policy & Product Management Market Research Product Definition &
Administration Policy Management In-Force Business Administration
Reinsurance Reinsurance Underwriting
Reinsurance Claim Handling
Reinsurance Accounting Retrocession Statistics & Reporting
Asset Management Asset Allocation Portfolio Management Portfolio Accounting Portfolio Controlling
Business Support Human Resources Operations Sourcing & Deployment Procurement Treasury Fixed Asset Management
Collections & Disbursements
Bernard
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© SAP AG FS320 1-19
SAP AG 2004
... and of in mySAP Insurance
MarketingManagement
SalesManagement
CustomerService
Mobile Field Enablement
Collections & Disbursements
Commissions
Reinsurance
Financial Asset Management
Product Management
Policy Management
ClaimsManagement
Human CapitalManagement
General Ledger
Controlling
SupplierRelationshipManagement
Procurement
Projects, etc.
Business Partner
MDM XApps XI Portal Business Process Management BI KM Mobile,
etc
Strategic Enterprise Management Business Information Warehouse
Analytics
Insurance Core Applications
Insight DrivenSales & Service
NetWeaver
Business SupportApplications
Bernard
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© SAP AG FS320 1-20
SAP AG 2004
SAPHR
SAPFI
SAPFS-CD ...
Collections/ Disburse-
ments...Others
Sett
lem
ent
Agre
emen
t
Com
mis
sion
Con
trac
t
Valu
atio
n an
d R
emun
erat
ion
Rul
es
Commission Case
SettlementPartner
ORG
CommissionAccounts
ContractManage-
mentSystems
BusinessWarehouse
BW
Few interfaces ensure a clear encapsulation of the FS-CS
Location of the CS in your system landscape. Now lets have a closer look at next slide. Encapsulated means that you can run any standard software to run commissions. It‘s clear what the inputs and outputs are. ..
Bernard
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© SAP AG FS320 1-21
SAP AG 2004
15+ customers / 5+ countries / 3 continents
Bernard
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© SAP AG FS320 1-22
SAP AG 2004
QIV 1999 … QII 2006
Rel. 4.51Charter Clients
Rel. 4.72
Rel. 4.71
5+Rel. 4.63
Rel. 4.62
Rel. 4.64
Rel. 4.61
JahreErfahrungen
Rel. 6.0Historie
Development of the Commission System Continues.
Bernard
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© SAP AG FS320 2-1
SAP AG 2004
Use of Organization Management (PD-ORG)
Contents:
Organization
Bernard
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© SAP AG FS320 2-2
SAP AG 2004
Describe the link to Organizational Management
At the conclusion of this unit, you will be able to:
Unit Objectives
Bernard
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© SAP AG FS320 2-3
SAP AG 2004
Course Overview
LiabilityLiability
Commission CaseCommission Case
ParticipationParticipation
Due datesDue dates
BonusBonus
Flat Rates and GuaranteesFlat Rates and Guarantees
Closing / Closing / SettlementSettlement
StoryStory
Commission contractsCommission contracts
Organization Organization
Business PartnerBusiness Partner
Generating ProgramGenerating Program
Business Objects andBusiness Objects andActivitiesActivities
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing ReportingReporting
Stor
yM
aste
r Dat
aPr
epar
atio
nC
omm
issi
on
Cas
e
Com
mis
sion
Cas
ePe
riodi
c Ta
sks
Info
Bernard
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© SAP AG FS320 2-4
SAP AG 2004
Scenario 1 [New markets – new products ]
LiabilityLiability
Commission CaseCommission Case
ParticipationParticipation
DueDue datesdates
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing
Commission Commission contractscontracts
OrganizationOrganization
Business Partner Business Partner
Mas
ter D
ata
GeneratingGenerating ProgramProgram
Business Business ObjectsObjects and and ActivitiesActivitiesPr
epar
atio
n
Com
mis
sion
Cas
e
Bernard
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© SAP AG FS320 2-5
SAP AG 2004
New marketing channels are to be reproduced in the authorization profile.
These marketing channels are to have a bearing on possible overriding commissions for agency and area managers.
Commission clerks are to have access only to marketing channels from their own regions.
Business Scenario
Bernard
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© SAP AG FS320 2-6
SAP AG 2004
Post
Settle
Accept
OffsetRemunerate
Valuate
Process
Disbursement system
commissioncontract
Salesorganization Pending/
parked
Commissionaccount
Totalsaccount
Totalsaccount
Commission caseCommission activitiesAlternative remuneration
Object information
Businesspartner
Determine
Close
Participants
Bernard
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© SAP AG FS320 2-7
SAP AG 2004
manages
occupies
belongs to
belongs to
Organizational unitGeneral management
South
Organizational unitRegional management
Heidelberg
Organizational unitAgency 1
...
Organizational unitAgency 2
...
Organizational unitRegional management
Frankfurt
Staff assignmentPeter Falk
PositionRegional manager
Heidelberg
PositionRegional manager describes
Organizational unitGeneral management
North
Organizational Structure
Commission contract4711
Link to the SAP R/3 tool for creating organizational structures (PD-ORG)
Organizational units
Relationships
Job profiles
Positions
Staff assignments
Use of links
Linking commission contract partners with their contracts
Assigning commission clerks to organizational areas
Use of evaluation methods for
Determining indirect participants
Cost centers for settlement documents
Authorizations for commission clerks
Bernard
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© SAP AG FS320 2-8
SAP AG 2004
User Interface: Organization and Staff Assignment
Indirect participants can be determined in terms of structure or contract. Different ones can also be sent explicitly to the interface.
Organizational Management functions and configuration are dealt with in the course HR505.
Bernard
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© SAP AG FS320 2-9
SAP AG 2004
Organizational structureBusiness partner in the role of commission clerk
Clerk group
Up to EURO 3000
Up to EURO 200
Sales area A
Region 2
Position 2Position 1Manager position
Position 3
Manager positionRegion 1
Position 2Position 1Manager position
Comn Contract Partner and Org. Structure (1)
The commission clerk is assigned qualitative authorizations through the user ID. The authorization concept in the Commission System is the same, in terms of structure and function, as authorization assignment and authorization checks in the R/3 system.
You can also assign quantitative authorization by stating amounts which a commission clerk can process.
The values of amount and quantity fields can be maintained for quantitative authorization checks in Commission System Customizing.
Quantitative authorizations can be grouped together into authorization groups in the case of several users.
The position of a clerk in the organizational hierarchy also decides which commission contracts the clerk can display and process.
Bernard
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© SAP AG FS320 2-10
SAP AG 2004
Organizational structureCommission contract for staff
assignment
Business partner in the role of commission contract partner
Brokers
Agent
FTEFTE
FTE
Part-timer
Full-timer
Regional management 1
Sales area A
Agency 1
Position 2Position 1Manager position
Position 2Position 1Manager position
Position 3
Manager position
02
03
11
Comn Contract Partner and Org. Structure (2)
When you create a commission contract you give the name of an existing commission contract partner (for example, broker, full-time agent).
When you activate a commission contract, you must assign it to an organizational structure.
Bernard
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© SAP AG FS320 2-11
SAP AG 2004
Assigning Commission Contracts and Positions
You can assign a commission contract by occupying a position, from the contract.
If you do not give a position, you cannot save the commission contract as active.
Bernard
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© SAP AG FS320 2-12
SAP AG 2004
Workplace for Commission Clerks
Additional functions can be added
The Manager's Desktop is an HR tool that can also be used for the commission clerk's workplace in Incentive and Commission Management (ICM).
The commission clerk's workplace is a combination of cross-application functions allowing you direct access to relevant data and functions.
You can add to the function codes in Customizing (on the left-hand side of the screen) as required.
You can also define the layout of the initial screen as you require.
The right-hand side of the workplace gives you different views of the organizational structure according to the following criteria, for example:
Commission contract partner
Cost centers
Commission clerk...
Bernard
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© SAP AG FS320 2-13
SAP AG 2004
Describe the link to Organizational Management
You are now able to:
Unit Summary
Bernard
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© SAP AG FS320 3-1
SAP AG 2004
Display and Maintenance of Business Partners (Commission Contract Partners and Clerks)
Master Data in the Commission System
Master Data in the Commission System
Bernard
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© SAP AG FS320 3-2
SAP AG 2004
Create commission recipiants and clerks in the commission system
At the conclusion of this unit, you will be able to:
Unit Objectives
Bernard
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© SAP AG FS320 3-3
SAP AG 2004
Course Overview
LiabilityLiability
Commission CaseCommission Case
ParticipationParticipation
Due datesDue dates
BonusBonus
Flat Rates and GuaranteesFlat Rates and Guarantees
Closing / Closing / SettlementSettlement
StoryStory
Commission contractsCommission contracts
Organization Organization
Business PartnerBusiness Partner
Generating ProgramGenerating Program
Business Objects andBusiness Objects andActivitiesActivities
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing ReportingReporting
Stor
yM
aste
r Dat
aPr
epar
atio
nC
omm
issi
on
Cas
e
Com
mis
sion
Cas
ePe
riodi
c Ta
sks
Info
Bernard
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anjua
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© SAP AG FS320 3-4
SAP AG 2004
Scenario 1 [New markets – new products ]
LiabilityLiability
Commission CaseCommission Case
ParticipationParticipation
DueDue datesdates
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing
Commission Commission contractscontracts
OrganizationOrganization
Business Partner Business Partner
Mas
ter D
ata
GeneratingGenerating ProgramProgram
Business Business ObjectsObjects and and ActivitiesActivitiesPr
epar
atio
n
Com
mis
sion
Cas
e
Bernard
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© SAP AG FS320 3-5
SAP AG 2004
Insurance Inc. employs a clerk for the new commission system, FS-CS. A branch of the sales organization is assigned to this clerk.
One of the tasks involved is to manage commission partners and their commission contracts.
Business Scenario
Bernard
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© SAP AG FS320 3-6
SAP AG 2004
Post
Settle
Accept
OffsetRemunerate
Valuate
Process
Disbursement system
commissioncontract
Salesorganization Pending/
parked
Commissionaccount
Totalsaccount
Totalsaccount
Commission caseCommission activitiesAlternative remuneration
Object information
Businesspartner
Determine
Close
Participants
Bernard
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© SAP AG FS320 3-7
SAP AG 2004
Collections/DisbursementsFS-CD
Commission SystemFS-CS
Customer RelationshipManagement
Commission Contract Partner (1)
Claims ManagementFS-CM
SAP Business Partneris a central anchor for SAP- and customer components
Business partner in the role of commission contract partner for:
Full-time sales employeesFull-time agentsPart-time agentsBrokers...
Business partner in the role of agent
Business partner in the role of commission clerk
Business PartnerBusiness Partner
SAP Business Partner as an anchor: SAP Business Partner manages the central, cross application data for a person or organization with which a business relationship exists.
Central data comprises, in particular, name, address and bank details.
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© SAP AG FS320 3-8
SAP AG 2004
Commission Contract Partner (2)
Dialog adjustments using Customizing
Enhancement options, with no need for modification Role concept
Mapping of partner relationships
User-friendly interface
SAP Business Partner as an infrastructure: SAP Business Partner offers other components the infrastructure for seamlessly integrating their own application-specific business partner data. Application-specific data is usually contained in application-specific roles (for example, commission contract partner or commission clerk).
You can have different types of relationships between business partners.
Examples: "Mr X is a colleague of Mr Y" "Mr X is married to Mrs Z"
SAP Business Partner developed a tool for maintaining master data and simple transaction data, called the Business Data Toolset (BDT).
The BDT is not only used to support dialog maintenance, it is also used for background maintenance with Direct Input and function modules.
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© SAP AG FS320 3-9
SAP AG 2004
Commission Contract Partner (3)
Management of all relevant personal, correspondence and communication data
Clear overview of each of a business partner's commission contracts
Information on training/qualifications using HR (SAP R/3 Human Resources) Qualification Management
Use of an optical archive system for storing documents.
When a commission contract is created, it is uniquely assigned to a commission contract partner.
This assignment helps identify the commission contracts for a partner in their master record. It also provides direct navigation (double click) to the commission contract.
You can assign the role of commission contract partner to several business partner types.
Example: full-time sales employee, full-time agent, part-time agent, broker
In addition to information on the commission contract partner (such as name components, personal data, addresses and communication methods), information on education and training is also displayed, through the integration of the SAP R/3 Human Resources component Qualification Management.
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© SAP AG FS320 3-10
SAP AG 2004
Definition of the Business Partner Type
Business Partner Types
EnterpriseAgentPerson
The business partner type determines the field status bar (the fields that are required for the business partner master record, which are option, hidden and displayed) when you create a business partner.
Business partner types can be used to group business partners according to the particular requirements of an enterprise.
If a business partner is created, the "business partner type" is displayed on the initial screen and the control data screen. If you display or change a business partner, this field is included in the control data.
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© SAP AG FS320 3-11
SAP AG 2004
An assignment must be made for each business partner
An assignment cannot be changed
The BP category requires a selection of fields for data entry
Example: The "Legal Form" field
Organization
Person
Group
Business Partner Categories: Attributes
When you create a business partner in the system, you need to select a category for it. The assignment of a business partner category is fixed and cannot be changed once a business partner has been created.
Established business partner categories are:
Person
Organization
Group
The business partner category specifies the fields that are to be made available for data entry. Thus, for example, when you create a business partner as an organization, you need to specify the legal form, whereas for the person, you need to enter the first name, last name, and gender etc.
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© SAP AG FS320 3-12
SAP AG 2004
Business Partner Categories: Name Fields
There are various name fields available, according to the business partner category.
Group
PersonTitleFirst name
Last name
.
.
Name
TitleName 1Name 2Partner group type..
Name
The name fields that are required for defining a business partner depend upon the business partner category and are defaulted accordingly.
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© SAP AG FS320 3-13
SAP AG 2004
Definition of a BP Category [Commission Contract Partner]
Business Partner Categories
Organization GroupPerson
The term business partner category is used to classify business partners as people (married couple, executive board etc.), groups, or organizations (legal entities), with whom an insurance company has a business relationship.
The organization consists of units such as enterprises, departments in an enterprise, or associations.
A legal entity or a part thereof can also be represented as a business partner. The umbrella term for this is "organization". Parts of a legal entity are, for example, subsidiary companies or purchasing departments.
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© SAP AG FS320 3-14
SAP AG 2004
Business Partner Grouping
ExternalInternal
BP Number: Assignment Area
Group 0001 Group 0002
A business partner grouping is a classification of business partners that an enterprise can define using its own criteria. In Customizing, you also define
Number ranges for the business partners
Groups for the business partners and the assignment of number ranges.
You can also make settings for standard groups in Customizing. These settings mean that a group is automatically selected if you do not assign a business partner number or group when you create a business partner (for internal number assignment), or when you assign a business partner number to a business partner, but not a group (for external number assignment).
Number range intervals and the type of number assignment are defined for each number range.
Type of number assignment: External or internal
Determine the number range interval (which numbers are allowed).
Number ranges for business partners are used for all customers. The standard R/3 System contains number ranges for all of the groups delivered by SAP. If required, you can change the number ranges.
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© SAP AG FS320 3-15
SAP AG 2004
Create commission recipiants and clerks in the commission system
You are now able to:
Unit Summary
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© SAP AG FS320 4-1
SAP AG 2004
Display and maintenance of commission contracts and their assignment to the organizational structure
Contents:
Master Data in the Commission System
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© SAP AG FS320 4-2
SAP AG 2004
Create and change commission contracts
At the conclusion of this unit, you will be able to:
Unit Objectives
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© SAP AG FS320 4-3
SAP AG 2004
Course Overview
LiabilityLiability
Commission CaseCommission Case
ParticipationParticipation
Due datesDue dates
BonusBonus
Flat Rates and GuaranteesFlat Rates and Guarantees
Closing / Closing / SettlementSettlement
StoryStory
Commission contractsCommission contracts
Organization Organization
Business PartnerBusiness Partner
Generating ProgramGenerating Program
Business Objects andBusiness Objects andActivitiesActivities
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing ReportingReporting
Stor
yM
aste
r Dat
aPr
epar
atio
nC
omm
issi
on
Cas
e
Com
mis
sion
Cas
ePe
riodi
c Ta
sks
Info
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© SAP AG FS320 4-4
SAP AG 2004
Scenario 1 [New markets – new products ]
LiabilityLiability
Commission Commission CaseCase
ParticipationParticipation
DueDue datesdates
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing
Commission Commission contractscontracts
OrganizationOrganization
Business Partner Business Partner
Mas
ter D
ata
GeneratingGenerating ProgramProgram
Business Business ObjectsObjects and and ActivitiesActivitiesPr
epar
atio
n
Com
mis
sion
Cas
e
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© SAP AG FS320 4-5
SAP AG 2004
The agreements between the Insurance Inc. and our commission contract partner should be maintained within the commission system.
Business Scenario
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© SAP AG FS320 4-6
SAP AG 2004
Post
Settle
Accept
OffsetRemunerate
Valuate
Process
Disbursement system
commissioncontract
Salesorganization Pending/
parked
Commissionaccount
Totalsaccount
Totalsaccount
Commission caseCommission activitiesAlternative remuneration
Object information
Businesspartner
Determine
Close
Participants
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© SAP AG FS320 4-7
SAP AG 2004
Commission contract
.......
.......
The commission contract governs the relationship between a commission contract partner and an organization
Commission Contract (1)
Contracts are generally managed in versions (time-dependent = period managed).
All documents can be managed together with the contracts, using optical archiving.
The commission contract is a legally-independent contract between the company and the commission contract partner. The commission contract partner can be a person or a legal entity.
A commission contract consists of all relevant agreements agreed explicitly with the commission contract partner, or implicitly as a global agreement in the standard contract.
Example: Guarantee agreement for a new agent
The core of the commission contract is the general contract agreement, which contains all the necessary core information.
Example: Start and end date of the commission contract
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© SAP AG FS320 4-8
SAP AG 2004
Commission Contract (2)
Commission contract
GlobalStandard
Individual
Standard contract
GlobalStandard
Commission contracts are easily recorded using standard contracts as a template
Agreements exist in the following forms:Global: Cannot be changed in the individual commission
contract
Standard: The standard contract provides templates that can be changed
Individual: Agreement must be specified in the commission contract
Commission contracts are usually based on standard template contracts, that differ according to the commission contract type. Example: - Standard contract "101" for agents in acc. with §84 CommC - Standard contract" 102" for brokers - Standard contract "103" for managers
Commission contract agreements differ as follows:
Agreement is made individually in the commission contract only.
- Example: Payment agreements
The agreement is in the standard commission contract, but can be modified in the commission contract.
- Example: Performance-related remuneration
The agreement applies as a global agreement. For this reason only one version of it is used throughout the company.
- For example: Valuating sales performance
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© SAP AG FS320 4-9
SAP AG 2004
Standard agreements governing:• Reserves• Liability• Legal right to future commission• Guarantees• Performance-related remuneration• Flat-rate remuneration• Contract conditions
Global agreements governing:• Participation• Commission activities• Valuation
Individual agreements governing:• Staff assignment• General commission contract• Commission contract partner• Payment• Communication
Commission contract agreements:
Commission Contract (3)
Elements independent of the standard commission contract:
Valuation agreement (object reference)
Elements of the standard commission contract:
Global agreements
Standard agreements
How elements of the commission contract can be used:
The standard contract is used as a reference. These agreements can be changed if necessary or can be taken over without as they are.
- Example: Performance-related remuneration
The standard contract is used as a template. You must make individual entries, however, so that the agreements become valid.
- Example: Flat Rates and Guarantees
The standard contract does not have to be used as a reference or template. In such cases the data is entered individually for each commission contract.
- Example: General commission agreements
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© SAP AG FS320 4-10
SAP AG 2004
General
Global agreements
Communication
Liability agreements
Guarantees
Settlement/paymentFlat-rate remuneration
Perf.-related remuneration
Life
Health
Motor
Savings
Annuity
Fund-bsd
New
In-force
In the commission menu, almost each agreement is displayed on its own tab pageThe dialog screen can be configured to suit each customer's requirements using the BDTSome agreements can be divided up further accordingto company requirements
Commission Contract (4)
The commission contract can be found in the Commission System menu using a tab index
The commission contract tab index includes the following tab pages:
General
- Contract data, such as entry date, internal title, and so on.
Performance-related remuneration
- Condition records, for example, sorted according to line of business
Flat-rate remuneration
Settlement and payment agreements
Guarantee agreements
Communication agreements
Global agreements
- Valuating sales activities to make these agent-independent
The layout, contents and sequence of the individual tab pages can be adjusted to suit individual needs using the BDT.
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© SAP AG FS320 4-11
SAP AG 2004
Contract Bundling
Reasons for contract bundling:
•For various reaons, several legally independent commission contracts are created for a commission contract partner.
•The commission contracts of a commission contract partner can contain the same agreements that apply to each of them.
Integration in the maintenance for commission contracts:
•Contract Bundle tab page in the commission contract
•You can maintain the commission contract and the contract bundle in the transfer mode.
•Dual consistency checks are available in the commission contractand the contract bundle.
Examples of why to bundle contracts:
One commission contract per division/tarif (life, medical, motor, etc.)
Change of position and retention of contract for former organizational unit
Migration of commission contracts as they were created in legacy system
Agreements with many changes as commission contract instead of supplement
Simplification of creation/change/assignment of standard contracts
Fast and practical for brokers
Technical realization
Development took place in the BDT
Same interface layout options as in the commission contract
Same version management options as in the commission contract
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© SAP AG FS320 4-12
SAP AG 2004
Assigning Commission Contracts and Positions
You can assign a commission contract by occupying a position, from the contract.
If you do not give a position, you cannot save the commission contract as active.
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© SAP AG FS320 4-13
SAP AG 2004
Create and change commission contracts
You are now able to:
Unit Summary
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© SAP AG FS320 5-1
SAP AG 2004
Generating Program
Contents:
Importance of the generating program
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© SAP AG FS320 5-2
SAP AG 2004
Use the generating program
At the conclusion of this unit, you will be able to:
Unit Objectives
Bernard
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© SAP AG FS320 5-3
SAP AG 2004
Course Overview
LiabilityLiability
Commission CaseCommission Case
ParticipationParticipation
Due datesDue dates
BonusBonus
Flat Rates and GuaranteesFlat Rates and Guarantees
Closing / Closing / SettlementSettlement
StoryStory
Commission contractsCommission contracts
Organization Organization
Business PartnerBusiness Partner
Generating ProgramGenerating Program
Business Objects andBusiness Objects andActivitiesActivities
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing ReportingReporting
Stor
yM
aste
r Dat
aPr
epar
atio
nC
omm
issi
on
Cas
e
Com
mis
sion
Cas
ePe
riodi
c Ta
sks
Info
Bernard
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© SAP AG FS320 5-4
SAP AG 2004
Scenario 1 [New markets – new products ]
LiabilityLiability
Commission CaseCommission Case
ParticipationParticipation
DueDue datesdates
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing
Commission Commission contractscontracts
OrganizationOrganization
Business Partner Business Partner
Mas
ter D
ata
GeneratingGenerating ProgramProgram
Business Business ObjectsObjects and and ActivitiesActivitiesPr
epar
atio
n
Com
mis
sion
Cas
e
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© SAP AG FS320 5-5
SAP AG 2004
Insurance Inc. has decided to implement the SAP commission system and must now decide, as part of the implementation project, what additional data is required for subsequent operation, and at what level.
For this, a special commission application is generated that covers the requirements of Insurance Inc.
Business Scenario
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© SAP AG FS320 5-6
SAP AG 2004
Specialization Through Generating
Application kernel “CACS00” Generated application “ZEN01”
Samplerules
ComnCase
ComnDoc
ComnCase
ComnDoc
Con-structionexample
Dyn. obj. and methods
Indiv. rules &supplements
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© SAP AG FS320 5-7
SAP AG 2004
Commission Application
Application kernel "CACS00" Generated application “ZEN01”
Dyn. obj. and
methodsSample
rules
Class 1
Class 2
ProvFall
ProvBeleg
ComnCase
ComnDoc
Indiv. rules &supplement
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© SAP AG FS320 5-8
SAP AG 2004
Examples of Application Parts
Application kernel "CACS00" Generated application “ZEN01"
Dyn. obj. and
methodsBsp.
Regeln
Class 1
Class 2
Customizing: Global control, std contracts, (rule)categories and types
Master data: Comn contract partners, comn contracts, comn clerks, org. management
Rules: Valuation, remuneration, distribution ...
Transaction data: Comn case, comn doc, summarization
Rules: Determination, grouping, summarization, account assignment
Class 1
Class 2
Process: Commission, settlement, ...
ComnCase
ComnDoc
Indiv. rules &supplement
Document -> data fields
Determination -> key fields
Totals tables -> both
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© SAP AG FS320 5-9
SAP AG 2004
Screenshot Generating Program
Drag and Drop
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© SAP AG FS320 5-10
SAP AG 2004
Customer-Specific Attributes
Additionalattributes forvaluation
Additional attributes forremuneration
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© SAP AG FS320 5-11
SAP AG 2004
Generating Program Options
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© SAP AG FS320 5-12
SAP AG 2004
Use the generating program
You are now able to:
Unit Summary
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© SAP AG FS320 6-1
SAP AG 2004
Commission activity agreements
in the Commission System
Business objects
Contents:
Business Objects and Activities
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© SAP AG FS320 6-2
SAP AG 2004
Define triggering methods, activity characteristics and activity groups
Explain what business objects are
At the conclusion of this unit, you will be able to:
Unit Objectives
Bernard
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© SAP AG FS320 6-3
SAP AG 2004
Course Overview
LiabilityLiability
Commission CaseCommission Case
ParticipationParticipation
Due datesDue dates
BonusBonus
Flat Rates and GuaranteesFlat Rates and Guarantees
Closing / Closing / SettlementSettlement
StoryStory
Commission contractsCommission contracts
Organization Organization
Business PartnerBusiness Partner
Generating ProgramGenerating Program
Business Objects andBusiness Objects andActivitiesActivities
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing ReportingReporting
Stor
yM
aste
r Dat
aPr
epar
atio
nC
omm
issi
on
Cas
e
Com
mis
sion
Cas
ePe
riodi
c Ta
sks
Info
Bernard
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© SAP AG FS320 6-4
SAP AG 2004
LiabilityLiability
Commission CaseCommission Case
ParticipationParticipation
DueDue datesdates
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing
Commission Commission contractscontracts
OrganizationOrganization
Business Partner Business Partner
Mas
ter D
ata
GeneratingGenerating ProgramProgram
Business Business ObjectsObjects and and ActivitiesActivitiesPr
epar
atio
n
Com
mis
sion
Cas
e
Scenario 1 [New markets – new products ]
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© SAP AG FS320 6-5
SAP AG 2004
Post
Settle
Accept
OffsetRemunerate
Valuate
Process
Disbursement system
commissioncontract
Salesorganization Pending/
parked
Commissionaccount
Totalsaccount
Totalsaccount
Commission caseCommission activitiesAlternative remuneration
Object information
Businesspartner
Determine
Close
Participants
Bernard
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© SAP AG FS320 6-6
SAP AG 2004
Post
Settle
Accept
OffsetRemunerate
Valuate
Process
Disbursement system
commissioncontract
Salesorganization Pending/
parked
Commissionaccount
Totalsaccount
Totalsaccount
Commission caseCommission activitiesAlternative remuneration
Object information
Businesspartner
Determine
Close
Participants
Bernard
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© SAP AG FS320 6-7
SAP AG 2004
Business Objects (1)
The commission relevant business object <insurance policy> comprises the following:
At the <policy> level, general valid information is received:
LoBStart of insuranceEnd of insurance
At the <price> level, general valid information is received:
TariffMonthly insurance premiumAmount insured...
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© SAP AG FS320 6-8
SAP AG 2004
Business Objects (2)
The commission relevant business object <insurance policy> comprises the following:
No valuation is made at the <policy> level
A valuation is run at the next level <Tariff>
Calculation of e
ach risk
inclusion
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© SAP AG FS320 6-9
SAP AG 2004
Commission Activities
Definition of Commission Activities:Information on changes made to the business case, which are transferred to FS-CS from an upstream system (such as a policy management system).
Also called: Change reasons, transaction types, subtransactiontypes
Why does FS-CS need this information?FS-CS calculates the commissions by looking at the activities performed, which are relevant to commission.In addition, the upstream system provides ICM with the following:
General information on the commission caseInformation on the participantsObject dataInformation on changes that have been made (including the triggering method)
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© SAP AG FS320 6-10
SAP AG 2004
Triggering Methods and Activity Characteristics (1)
Triggering methodsTrigger/information from the upstream system:
Change type or transaction key with which the object in the calling system was created, moved or changed, for example,
Creation of a new insurance policyTariff changeReinstatement...
Are assigned to an activity type in Customizing using the activity characteristic
Activity characteristicsUsed to determine the activity types from the triggering methods
Either through direct assignmentOr through a (customer-specific) function that derives the activity type on the basis of further details
The triggering methods (input field in the commission case) are used as triggers for determining the activity types. In addition, the triggering methods are linked to the activity types using activity characteristics (with which the commission module works internally). The activity type (as one of several criteria) is used to determine the corresponding remuneration type.
The activity characteristics can be used as additional selection criteria when determining the remuneration type.
In many policy management systems, the triggering methods are so detailed that it is possible to derive the activity type from them without the need for other conditions.
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© SAP AG FS320 6-11
SAP AG 2004
Triggering Methods and Activity Characteristics (2)
Activity group
Activity characteristics
Determining method
Activity characteristics Activity type
Activity type
Optional
Required
Vorsystem
FS-CS
Triggering methods
The indirect derivation of the activity characteristic, using the determination method, is not optional:
For example, you can determine the activity characteristics, sich as fine selection conditions, using a user exit.
Activity group:
The formation of commission activity groups allows classes of commission activity types to delimit one another. A commission activity type is therefore assigned to just one commission activity group.
On group level, your own rules can exist (such as clearing values within just one specific group).
Possible commission activity groups for insurance include:
- Acquisition activity
- Reset
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© SAP AG FS320 6-12
SAP AG 2004
Activity Type
Activity Group
Activity characteristics Activity type
Activity typeActivity characteristics
Activity types...Are derived from the type of change made to the business caseRepresent the type of sales activityDetermine the commission along with the participation role and the commission agreements (commission and remuneration types)Always have a unique reference to the triggering method
Possible activity types (some examples):
New business
Increase
Changes
Tariff change
Prolongation
Cancellation reset
The various agent activities are to be derived from the activity types, for example, "acquiring a new contract" or the "completion of insurance cover". Example: The "tariff change" change reason (triggering method) only means that the tariff was changed in a contract. In ICM, this change reason can trigger different activity types (maintenance of in-force business, completion, or changing insurance cover).
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© SAP AG FS320 6-13
SAP AG 2004
Activity Group
Activity Group
Activity characteristics Activity type
Activity typeActivity characteristics
Activity groups...Group activity types, whereby an activity type is assigned to one activity group.
Allow activity types to be passed on to several objects
In an activity group, activity types from higher-level object structures can be passed on to lower-level object structures (if this option is active) Example:
Different activity types were assigned to activity group AP (for example, NEW with priority 80 and AMEND with priority 60). If, in the case of a higher-level subobject in the commission contract, a business transaction has the activity NEW, while the lower-level subobject has the activity AMEND, the activity NEW is used for the lower-level subobject also, as the priority is higher.
The activity types within a group are clearly differentiated. Only one activity type can be found in the group with reference to a specific activity.
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© SAP AG FS320 6-14
SAP AG 2004
Activity Types: Example
Contract Activity type Result
Liability insurance remains unchanged non
Valuation and (resulting) remuneration possible
Old part comprehensive cover is cancelled
change Valuation and (resulting) remuneration possible
New part comprehensive cover is started NEW
Valuation and (resulting) remuneration possible
Scenario: The policyholder has purchased a secondhand car with the result that the motor insurance policy must be changed.
Object types
8000: Contract
8010: Tariff
8020: xx
8030: Risk
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© SAP AG FS320 6-15
SAP AG 2004
Scenario "Change to car insurance":The policyholder would like to include a new risk in the existing
car insurance policy (for example, passenger insurance).
Objekttypen
8000: Vertrag
8010: Tariff
Activity on the contract level -> <Change>(since contract for car already exists)
Activity on the tariff level -> <New>(since the new risk is to be included)
Possible Interaction Between Activities and Objects (1)
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© SAP AG FS320 6-16
SAP AG 2004
Scenario "Change to car insurance":The policyholder would like to include a new risk in the existing
car insurance policy (for example, passenger insurance).
Objekttypen
8000: Vertrag
8010: Tariff
Activity on the contract level -> <Change>(since contract for car already exists)
Activity on the tariff level -> <New>(since the new risk is to be included)
5% commission is, for example, remuneratedbased on the new business.
Without inherita
nce of
activitie
s
Possible Interaction Between Activities and Objects (2)
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© SAP AG FS320 6-17
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Scenario "Change to car insurance":The policyholder would like to include a new risk in the existing
car insurance policy (for example, passenger insurance).
Objekttypen
8000: Vertrag
8010: Tariff
Activity on the contract level -> <Change>(since contract for car already exists)
Activity on the tariff level -> <New>(since the new risk is to be included)
3 % commission is, for example, remuneratedbased on the contract change.
Withinherita
nce of
activitie
s
<Change>
Possible Interaction Between Activities and Objects (3)
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© SAP AG FS320 6-18
SAP AG 2004
Define triggering methods, activity characteristics and activity groups
Explain business objects
You are now able to:
Unit Summary
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© SAP AG FS320 7-1
SAP AG 2004
Valuation in the Commission System
Contents:
Valuation
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© SAP AG FS320 7-2
SAP AG 2004
Describe the valuation process
At the conclusion of this unit, you will be able to:
Unit Objectives
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© SAP AG FS320 7-3
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Course Overview
LiabilityLiability
Commission CaseCommission Case
ParticipationParticipation
Due datesDue dates
BonusBonus
Flat Rates and GuaranteesFlat Rates and Guarantees
Closing / Closing / SettlementSettlement
StoryStory
Commission contractsCommission contracts
Organization Organization
Business PartnerBusiness Partner
Generating ProgramGenerating Program
Business Objects andBusiness Objects andActivitiesActivities
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing ReportingReporting
Stor
yM
aste
r Dat
aPr
epar
atio
nC
omm
issi
on
Cas
e
Com
mis
sion
Cas
ePe
riodi
c Ta
sks
Info
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© SAP AG FS320 7-4
SAP AG 2004
Scenario 1 [New markets – new products ]
LiabilityLiability
Commission CaseCommission Case
ParticipationParticipation
DueDue datesdates
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing
Commission Commission contractscontracts
OrganizationOrganization
Business Partner Business Partner
Mas
ter D
ata
GeneratingGenerating ProgramProgram
Business Business ObjectsObjects and and ActivitiesActivitiesPr
epar
atio
n
Com
mis
sion
Cas
e
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© SAP AG FS320 7-5
SAP AG 2004
Post
Settle
Accept
OffsetRemunerate
Valuate
Process
Disbursement system
commissioncontract
Salesorganization Pending/
parked
Commissionaccount
Totalsaccount
Totalsaccount
Commission caseCommission activitiesAlternative remuneration
Object information
Businesspartner
Determine
Close
Participants
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© SAP AG FS320 7-6
SAP AG 2004
Commission Calculation (Valuation vs. Remuneration)
In various commission systems, commission is calculated in an algorithm.
In Commission Management (FS-CS), this calculation is done in two parts:
Valuation calculation
(based on business objects)
Remuneration calculation
(based on participants)
Real-time contract:
End of premium payment = end of insurance term - often when payment is also made.
Long-term contract:
The end of premium payment is before the end of the insurance term (often 5-20 years) - payment can be made at any time during this period
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© SAP AG FS320 7-7
SAP AG 2004
Valuation
Agent Miller sells a life-insurance policy (= sales activity) and now the commission due must be calculated.
During the valuation process,
the value of the sales activity for the
enterprise is determined
(based on business objects).
Standardized throughout the enterprise
Instrument for basic control of sales activity
Real-time contract:
End of premium payment = end of insurance term - often when payment is also made.
Long-term contract:
The end of premium payment is before the end of the insurance term (often 5-20 years) - payment can be made at any time during this period
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© SAP AG FS320 7-8
SAP AG 2004
Valuation
The valuation is run when a business object- is created- changed- or reversed
An object that is relevant to commission (business object) can have more than one valuation.
The valuation is done by using defined valuation types that were defined in each of the object types.
The valuation types are used for accessing the required "arithmetic unit" (tool) such as valuation procedures or valuation methods.
The result of the caclulation is used for calculating the commission for agent Miller.
The valuation results are provided for the remuneration process, whereby the valuation MUST take place beforehand.
Valuation is completed before remuneration is started:
If valuation is not to be carried out, for example, if the remuneration is to be calculated based on 100% of the sales activity, then the relevant value (for example, monthly payment of 100%) can be "put through" the valuation process.
Reversal of an insurance object:
In this case, valuations of all types are determined again.
The valuation is not reversed on its own, but always with the corresponding commission case document. When a commission case is reversed, its commission case document is reversed also.
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© SAP AG FS320 7-9
SAP AG 2004
Valuation
A change to the valuation conditions (for example, for insurance tariff<LIFEPLUS>) affects all future businesswhere the commission uses this valuation.
Valuation is completed before remuneration is started:
If valuation is not to be carried out, for example, if the remuneration is to be calculated based on 100% of the sales activity, then the relevant value (for example, monthly payment of 100%) can be "put through" the valuation process.
Reversal of an insurance object:
In this case, valuations of all types are determined again.
The valuation is not reversed on its own, but always with the corresponding commission case document. When a commission case is reversed, its commission case document is reversed also.
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© SAP AG FS320 7-10
SAP AG 2004
Commission-relevantObject
Commission-relevantObjectCommission-relevant
ObjectCommission-relevantObjectCommission-relevant
Object
Commission-relevantObject Valuation type n
Valuation type 1
Valuation type 2Tool
(for example, own calculation tool)
Tool(for example, own calculation tool)
Determination of valuation type and valuation procedure:
Basic Design
Valuation type:
This is used to classify different valuation algorithms. The commission valuation agreement stipulates which valuation types are used. Valuation types are used as a company-wide steering instrument. Depending on the valuation type, a decision is made regarding which valuation object type and which valuation procedure should be called to determine the result.
Possible valuation types in an insurance company are:
- Commission basis
- Production value
- Number of persons
- Charge factor value
Logical service:
Technical tool in the commission system for finding a calculating method. You can define your own calculation method here instead of the logical service.
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© SAP AG FS320 7-11
SAP AG 2004
Example: Valuation Process
The following applies for the example below:2 level object hierarchy:
Object: "Insurance Policy" (8000) and
Subobject: "Tariff" (8010)
If a business case is registered for the "Tarif" (8010) subobject, then a value is to be determined (valuation) for this business.
This value determination is then to be used to calculate a suitable remuneration.
For example, 90% of the insured amount for life insurance is used for subsequent calculations.
The percentage rate is to be stored in tables so that the relevant department can still make changes if required.
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© SAP AG FS320 7-12
SAP AG 2004
Example: Valuation Process
Scenario:
Agent Miller's commission contract statesthe following in the global agreements:
-90% of the insured amount is used for the commission calculation for a real-time contract
-100% of the insured amount is used for thecommission calculation for a long term contract.
(This applies to all agents with the same standard contract -individual agreements cannot be made.)
Real-time contract:
End of premium payment = end of insurance term - often when payment is made also.
The end of premium payment is before the end of the insurance term (often 5-20 years) - payment can be made at any time during this period
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© SAP AG FS320 7-13
SAP AG 2004
Valuation Using Condition Technique (1)
1
2
3
Valuation process
As the insured sum is always entered into the commission system at Tariff level (for example, 8010), a valuation type (for example, BEW) must be assigned to the subobject (for example, xx).
Since the valuation type will be used to find a relevant calculation procedure, a tool (i.e. SAP SD cond. technique) must be assigned to the valuation type.
If you use as a tool the SAP SD cond. technique, than a link to the used calculation procedure (for example,
CS-PREM) will be maintained.
Scenario
First of all, a valuation type is determined
Then the tool is determined
And then the calculation procedure is determined
Calculation procedure:
Determines the conditions allowed for each document and defines their sequence in the document.
Calculation procedures are used in the following areas, for example:
- Price determination in sales
- Overhead calculation in product costing and CO internal orders
- Determination of accrued cost in the profitability analysis
- Message control (printed confirmation, EDI messages electronic mails)
- Account determination
- Determining taxes on sales/purchases
- Cost center selection
- Price determination in resource planning
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© SAP AG FS320 7-14
SAP AG 2004
4
5
Valuation process
A condition type (for example BEW) is assigned to the calculation procedure (for example, CS-PREM), so that the relevant formulas (ABAP) can be defined in the calculation procedure (“processing procedure“).
A formula must be defined, in the calculation procedure defined above, for condition type BEW so that the
system can be given the starting value (insured amount).
Scenario
The condition typeis determined next
And then the formula
Valuation Using Condition Technique (2)
Condition technique
Hierarchy of components that define data combinations designed to trigger an action. The constellations defined by SAP and the customer are searched for according to a specific hierarchy. The condition technique is used, for example, by SAP-SD for pricing.
Condition type
Identifies the characteristics of a condition. For example in pricing, different condition types are used to distinguish between a discount that refers to a net price and a discount that refers to a gross price.
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© SAP AG FS320 7-15
SAP AG 2004
6
7
8
Valuation process
Essentially, only 90% of the insured amount should be used as a basis for further calculations (remuneration). For this reason a suitable table must be created for defining the percentage rate. However, to enable several tables with different key fields to be created for one calculation type, access sequences must be defined when you use condition tables.
You may have to include fields in the field list for condition tables so that the correct tables can be set up. The value (90%) is then entered in the condition table (for example, 610).
The required field transport must be defined so that the calculated values can be used for further calculations (remuneration).
Scenario
The access sequence is determined next
And then a conditions table
And, finally, a field transport is carried out
Valuation Using Condition Technique (3)
Condition table:
Table that defines the structure of condition record keys. The key consists of a variable part, which represents one or more fields and of a fixed part, which is identical for all condition records.
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© SAP AG FS320 7-16
SAP AG 2004
Logical service SD-PREM Service ID (calculation procedure=CSPREM), parameter 1 (Bew = results condition type) parameter 2 (PB = valuation)
Access sequence ZBEW
Condition table A610
A610
Line of business %11 90
Fields: Line of business
Table Condition Excl.
A610
Field catalog:
CACS_S_CUST_COND
Field 1 - n
Table definition
Valuation procedure SD-PREM
Condition typeCondition
ABAP
Basis form.Calculation formula
Sequence
Valuation type: BEW
Simple Valuation Using Condition Technique
Valuation procedure:
Valuates an activity neutrally and delivers valuation types for commission determination. Valuation is carried out by using the correct method for the valuation type, or directly by assigning a result value entered in the system.
In the insurance context, the procedure valuates an activity neutrally, irrespective of which agent carried it out.
Condition record:
Data record that stores a condition, or condition supplements. Conditions include:
- Prices
- Discounts and surcharges
- Taxes
- Messages
Access sequence:
Combination of several accesses to condition records. The access sequence defines the order in which the system searches for condition records.
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© SAP AG FS320 7-17
SAP AG 2004
Describe the valuation process
You are now able to:
Unit Summary
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© SAP AG FS320 8-1
SAP AG 2004
Performance-related remuneration
in the Commission System
Contents:
Performance-Related Remuneration
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© SAP AG FS320 8-2
SAP AG 2004
At the conclusion of this unit, you will be able to:
Unit Objectives
Explain the importance of remuneration types
Explain the process of remuneration clearing
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© SAP AG FS320 8-3
SAP AG 2004
Course Overview
LiabilityLiability
Commission CaseCommission Case
ParticipationParticipation
Due datesDue dates
BonusBonus
Flat Rates and GuaranteesFlat Rates and Guarantees
Closing / Closing / SettlementSettlement
StoryStory
Commission contractsCommission contracts
Organization Organization
Business PartnerBusiness Partner
Generating ProgramGenerating Program
Business Objects andBusiness Objects andActivitiesActivities
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing ReportingReporting
Stor
yM
aste
r Dat
aPr
epar
atio
nC
omm
issi
on
Cas
e
Com
mis
sion
Cas
ePe
riodi
c Ta
sks
Info
Bernard
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© SAP AG FS320 8-4
SAP AG 2004
LiabilityLiability
Commission CaseCommission Case
ParticipationParticipation
DueDue datesdates
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing
Commission Commission contractscontracts
OrganizationOrganization
Business Partner Business Partner
Mas
ter D
ata
GeneratingGenerating ProgramProgram
Business Business ObjectsObjects and and ActivitiesActivitiesPr
epar
atio
n
Com
mis
sion
Cas
e
Scenario 1 [New markets – new products ]
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© SAP AG FS320 8-5
SAP AG 2004
Post
Settle
Accept
OffsetRemunerate
Valuate
Process
Disbursement system
commissioncontract
Salesorganization Pending/
parked
Commissionaccount
Totalsaccount
Totalsaccount
Commission caseCommission activitiesAlternative remuneration
Object information
Businesspartner
Determine
Close
Participants
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© SAP AG FS320 8-6
SAP AG 2004
Commission Calculation (Valuation vs. Remuneration)
In various commission systems, commission is calculated in an algorithm.
In Incentive and Commission Management (ICM), this calculation is done in two parts:
Valuation calculation
(based on business objects)
Remuneration calculation
(based on participants)
Real-time contract:
End of premium payment = end of insurance term - also when payment is often made.
Long-term contract:
The end of premium payment is before the end of the insurance term (often 5-20 years) - payment can be made at any time during this period
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© SAP AG FS320 8-7
SAP AG 2004
Remuneration
Agent Miller sells a life-insurance policy (= sales activity) and now the commission due must be calculated.
During the remuneration process, the remuneration amount is calculated based on the assigned valuation
(based on participants.)
Laid out in standard contract
Conditions may be changedindividually (commissioncontract)
Instrument for basic control of sales activity
Real-time contract:
End of premium payment = end of insurance term - also when payment is often made
Long-term contract:
The end of premium payment is before the end of the insurance term (often 5-20 years) - payment can be made at any time during this period
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© SAP AG FS320 8-8
SAP AG 2004
Remuneration
Changes to conditions in the standard contract (for example, standard contract <101> for full-time agents) affectall future business where the commission contracts involved refer to this standard contract (for example, <101>).
Valuation is completed before remuneration is started:
If valuation is not to be carried out, for example, if the remuneration is to be calculated based on 100% of the sales activity, then the relevant value (for example, monthly payment of 100%) can be "put through" the valuation process.
Reversal of an insurance object:
In this case, valuations of all types are determined again.
The valuation is not reversed on its own, but always with the corresponding commission case document. When a commission case is reversed, its commission case document is reversed also.
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© SAP AG FS320 8-9
SAP AG 2004
Performance-Related Remuneration Types
There are three types of remuneration:Direct remuneration: Relevant for disbursement
Indirect remuneration: No disbursement
Statistical remuneration: No disbursement
Remuneration types control whether the value determined as part of remuneration is:
Paid out directly (direct remuneration)
Used as a basis for other remuneration (indirect remuneration)
Used for other purposes (for example, statistics) (statistical remuneration)
The following are examples of evaluation types:
Direct: Signing commission
Indirect: Points system, collected amounts, overriding commission
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© SAP AG FS320 8-10
SAP AG 2004
Remuneration type n
Remuneration type 1
Remuneration type 2
Tool 1[ I.e. SD-condition technique]
Tool[I.e. own calculation tool]
A “calculation” tool will be assigned to a performance-related remuneration type
One tool can be used for several performance-related remuneration types
The process for calculating and determining (value) is assigned using the tool (i.e.: SAP SD condition techique)
Perf.-Related Remuneration Type <-> Log. Service
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© SAP AG FS320 8-11
SAP AG 2004
Percentage values
Promille values
Fixed values (for example, Euro amounts)
It is also possible to define intervals or scales for these conditions.
Condition Forms
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© SAP AG FS320 8-12
SAP AG 2004
Remuneration type n
Remuneration type 1
Remuneration type 2
Account assignment 1
Account assignment type n
Perf.-Related Remuneration Acct Assignment
Only one account assignment type can be assigned to a performance-related remuneration type
One account assignment type can be used for several performance-related remuneration types
Account assignments types are used to determine cost andwage types as well as other values relevant for settlement
Account assignment type:
Business key containing all account assignment information relevant for posting (such as posting key, cost type and salary type). Assignment is carried out correctly in the downstream systems by means of the account assignment types.
An account assignment type contains information on the two possible forms of account assignment (settlement account assignment, cost account assignment).
- In the settlement agreement of the standard commission contract, settlement types are assigned to settlement account assignments.
- In the remuneration and guarantee agreements, remuneration types are assigned to cost account assignments.
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© SAP AG FS320 8-13
SAP AG 2004
Guaranteeremuneration type 1
Guaranteeremuneration type n Remuneration type n
Remuneration type 1
Remuneration type 3
Remuneration type 2
In the standard guarantee agreement, performance-related remuneration types, for which a guarantee has been granted, are assigned to guarantee remuneration types
Guarantee Remun. Type<-> Perf.-Related Remun. Type
Whereas you can assign a performance-related remuneration type to several guarantee remuneration types, we do not recommend this for business reasons.
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© SAP AG FS320 8-14
SAP AG 2004
Settlement type 1
Settlement type n Remuneration type n
Remuneration type 1
Remuneration type 3
Remuneration type 2
Settlement Type Perf.-Rel. Remuneration Type
In the standard settlement rule, performance-related remuneration types that are to be settled together are assigned 1-n to settlement types
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© SAP AG FS320 8-15
SAP AG 2004
Customizing: Remuneration for Standard Contracts
Reference to a determination
rule
Standardcontract
Contractgrouping
Remuneration type
Remuneration typerelevant in terms ofdetermination rule
Calculation procedure +results conditions
Tool
Link totype of calculator
Commission and product
categorization Calculator(Condition determination
and calculation)
"01" StandardagreementComb. ID
LoB Activity type Comn contract type Hrs Indiv. Life New business Full-time agent 5 %Life In-force Full-time agent 4 %Motor New business Part-time agent 4,5 %
A standard remuneration agreement is defined in the standard contract (category 01).
The standard remuneration agreement refers to a primary determination rule for remuneration.
In the individual set of determination rules (which can be defined for each customer) you can find remuneration types in conjunction with the values of freely defined attributes. The advantage of this is that you can have separate calculation processes for different remuneration types (for example, Life is based on different initial values from Motor).
The remuneration type is used to establish a determination and calculating service. The SAP condition technique can be used at the moment (percentage rates or other values are found and processed in freely-definable formulas (calculation procedures to ABAP-Coding)). There are plans to include other calculation tools.
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© SAP AG FS320 8-16
SAP AG 2004
Individual Commission Contracts
Reference to a determination
rule
Standardcontract
ContractJohnSmith
Contractgrouping
Remuneration type
Remuneration typerelevant in terms ofdetermination rule
Calculation procedure +results conditions
Tool
Link totype of calculator
Commission and product
categorization Calculator(Condition determination
and calculation)
"01" StandardagreementComb. ID
When drawing up commission contracts for individual commission contract partners, you can enter individual condition records (usually percentage value as a commission rate) that differ from the standard contract.
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© SAP AG FS320 8-17
SAP AG 2004
Individual Agreements
Practical example:
According to legal or contractual conditions, it can be that remunerations are only paid out up to a certain amount for each business transaction (commission case). Using remuneration clearing in the commission module, it is possible to reduce the calculated remunerations (proportionally, for example), so that these “remuneration limits” are observed.
If negative remunerations (due to reversal, for example) are not called back immediately by the insurance representative, but these amounts are to be cleared later with positive remunerations, remuneration clearing is still required (secondary liability).
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© SAP AG FS320 8-18
SAP AG 2004
Remuneration Clearing
Remuneration ClearingRemuneration Clearing
Remuneration Clearing
Practical example:
According to legal or contractual conditions, it can be that remunerations are only paid out up to a certain amount for each business transaction (commission case). Using remuneration clearing in the commission module, it is possible to reduce the calculated remunerations (proportionally, for example), so that these “remuneration limits” are observed.
If negative remunerations (due to reversal, for example) are not called back immediately by the insurance representative, but these amounts are to be cleared later with positive remunerations, remuneration clearing is still required (secondary liability).
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© SAP AG FS320 8-19
SAP AG 2004
Reasons for Remuneration Clearing
Ceiling amount
Offsetting
Other...
Examples:
It may be a legal or contractual requirement to only disburse remunerations up to a certain amount for each business transaction (commission case). You can use remuneration clearing in the commission module to reduce the calculated remunerations (for example, proportionately) so that the "remuneration limits" are not exceeded.
If the insurance representative does not immediately demand the return of negative remunerations (for example, due to a reversal), but wants these amounts to be cleared with positive remunerations later on, a remuneration clearing is also required (secondary liability).
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© SAP AG FS320 8-20
SAP AG 2004
Procedure: Remuneration Clearing (1)
Selection ruleWhich remuneration should be included in the analysis?
for example, Remuneration type APL
for example, Remuneration type APK
Grouping RuleDo different types of remuneration need to be analyzed separately?
Remuneration Remuneration Remuneration Remuneration of all participants of the current business case
You can choose Selection Rules to make the required remuneration (remuneration rows) available to other processes in remuneration clearing.
Remuneration clearing rule:
Description of remuneration clearing in the commission system.
The remuneration clearing rule contains information for the clearing procedure. It is stored in the remuneration clearing agreement.
Remuneration clearing:
Group of all agreements in which additional rules are agreed upon (with reference to a commission case and/or a business object and/or a participant or subquantities in performance-related remuneration) that influence the way in which the commission is determined.
In most cases, there are offsetting or ceiling amount rules that influence the remuneration amounts for business and for general reasons.
Remuneration type:
There are different types of remuneration, for example, flat-rate remuneration and performance-related remuneration. Some types are already in the system and a company can choose to hide them or add their own. Remuneration (for example, its frequency) can be governed by the remuneration type. There are usually different liability rules for different remuneration types.
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© SAP AG FS320 8-21
SAP AG 2004
Procedure: Remuneration Clearing (2)
Remuneration type APL
Grouping ruleWhat criteria should be used for analyzing the remuneration?
Calculation ruleNew remuneration results may be determined
Possible result of the remuneration clearing:• New detail rows for remuneration
• New remuneration amounts
The selected data is processed as per the group rulings in groups in the subsequent calculation rule (ABAP).
You can add your own criteria to the grouping criteria. This is ensured by the transfer of "customer fields" to the remuneration document structure.
Examples:
Offsetting:
You should only offset the same type of remunerations against each other (positive and negative), for example, Life closing commission). The remuneration type is a useful grouping characteristic for this.
Ceiling amount:
The total of the remunerated amounts for particular remuneration types may not exceed a certain amount. You can use the remuneration group as a useful grouping characteristic for this (providing you have assigned the remuneration types to this remuneration group in customizing).
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© SAP AG FS320 8-22
SAP AG 2004
You are now able to:
Explain the importance of remuneration types
Explain the process of remuneration clearing
Unit Summary
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© SAP AG FS320 9-1
SAP AG 2004
Contents:
Liability: Overview
Liability agreement
Liability period
Liability type
Liability rule
Liability process
Liability in the Commission System
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© SAP AG FS320 9-2
SAP AG 2004
Describe the use of liability agreements
At the conclusion of this unit, you will be able to:
Unit Objectives
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© SAP AG FS320 9-3
SAP AG 2004
LiabilityLiability
Commission CaseCommission Case
ParticipationParticipation
Due datesDue dates
BonusBonus
Flat Rates and GuaranteesFlat Rates and Guarantees
Closing / Closing / SettlementSettlement
StoryStory
Commission contractsCommission contracts
Organization Organization
Business PartnerBusiness Partner
Generating ProgramGenerating Program
Business Objects andBusiness Objects andActivitiesActivities
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing ReportingReporting
Stor
yM
aste
r Dat
aPr
epar
atio
nC
omm
issi
on
Cas
e
Com
mis
sion
Cas
ePe
riodi
c Ta
sks
Info
Course Overview
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© SAP AG FS320 9-4
SAP AG 2004
LiabilityLiability
Commission CaseCommission Case
ParticipationParticipation
DueDue datesdates
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing
Commission Commission contractscontracts
OrganizationOrganization
Business Partner Business Partner
Mas
ter D
ata
GeneratingGenerating ProgramProgram
Business Business ObjectsObjects and and ActivitiesActivitiesPr
epar
atio
n
Com
mis
sion
Cas
e
Scenario 1 [New markets – new products ]
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© SAP AG FS320 9-5
SAP AG 2004
Insurance Inc. agreed various liability rules and periods with their agents for commission-relevant transactions.
Business Scenario
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© SAP AG FS320 9-6
SAP AG 2004
Overview
The commission contract partner (for example, agent) is liable for the results of business he or she conducts on behalf of the company.This liability is based on special rules laid out in the general contract conditions. In the Commission System, these rules are known as the liability agreement.If remuneration has been paid out, and the results for which it has been paid out are somehow reduced, the insurance company can demand that the remuneration be paid back either wholly or in part (partial recall is controlled using liability rules).
An agent is only liable for remunerations that were disbursed for a result that she or he obtained personally.
Example: A liability insurance policy that runs for five years but is reversed after only one year. Based on the agreement in the insurance contract, the commission can be partially or completely recalled by the insurance company.
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© SAP AG FS320 9-7
SAP AG 2004
Post
Settle
Accept
OffsetRemunerate
Valuate
Process
Disbursement system
commissioncontract
Salesorganization Pending/
parked
Commissionaccount
Totalsaccount
Totalsaccount
Commission caseCommission activitiesAlternative remuneration
Object information
Businesspartner
Determine
Close
Participants
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© SAP AG FS320 9-8
SAP AG 2004
Liability Process
Liability analysis is triggered for every valuation that shows anegative value in the difference valuation for the current commission case. This includes the following steps:
Determining a reduction (minus in the valuation)
Determining the valuation history
Recalling disbursement
Determining remuneration entitlement in the case of liability
Determining the remaining liability share
Determining remuneration earned
Liability analysis is finished when all valuations are positive.
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© SAP AG FS320 9-9
SAP AG 2004
Liability Agreement
Group of liability rules in the general contract conditions.
An element of the commission contract that cannot be drawn up on an individual basis.
Contains all the required liability types and is assigned in the standard contract.
Liability agreement:
A commission contract partner is liable for the results of business she or he conducts on behalf of the company. If remuneration has been paid out, and the results for which it is paid out are somehow diminished, the sold-to party can demand that the remuneration be paid back either wholly or in part (partial recall is controlled using liability rules).
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© SAP AG FS320 9-10
SAP AG 2004
Liability Period
Period during which a commission contract partner can be held liable for the activities he or she performs.Liability periods can be agreed for all types of performance-related commission (acquisition, support, indirect participation, and so on). The length of the liability period may depend on attributes such as line of business, product and/or insured period.If the customer pays the premium over the whole liability period, then the commission may be considered as having been earned.
Liability periods can also depend on other factors, such as a product ("bundle") or the duration of the insurance policy.
The advantage of fixed liability periods is that they are determined at the same time as the commission.
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© SAP AG FS320 9-11
SAP AG 2004
Liability Type
Determination of liability period and calculation rule used to recall whole or part of remuneration in cases where the commission object (for example, an insurance policy) is reduced or canceled.The liability type is defined in performance-related remuneration. It refers to a “liability tool” (liability rule).The liability type can be determined as follows:
By choosing the liability type, independently of the remuneration, using a determination mechanism (assignment procedure) in the standard liability agreement, with freely-defined attributes.By assigning the liability type to individual remuneration types
You can have exactly one liability agreement for each standard contract. This agreement contains all the necessary liability types.
The determination function uses a set number of determination tables with customer-specific key fields - this set number is defined in the generating program.
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© SAP AG FS320 9-12
SAP AG 2004
Liability Rule
The liability rules determine
the remuneration amounts that can be recalled
from the agent(s) if there is a negative
business change (for example, cancellation or
a reduction of coverage).
This means that you can use more than one commission liability rule for a remuneration type in a commission case.
For direct participants, it is also possible to use different liability rules for a remuneration type in a commission case (depending on each commission contract type).
There are usually different liability rules for different remuneration types.
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© SAP AG FS320 9-13
SAP AG 2004
Agent Miller has acquired a life insurance contract with a customer, Mrs. Smith.
After 14 months, Mrs. Smith requests that the insurance coverage be reducedin the life insurance contract.
The cancellation agreement of the insurance company means thata scaled cancellation liability has been agreed upon for the commission on the acquisition of life insurance policies.
• Cancellation within 12 months: 100% cancellation liability• Cancellation between 12 and 24 months: 50 % cancellation liability• Once this period of time is up, the commission is not recalled.
The example above requires a 50% cancellation liability.This means that agent miller has to pay 50% of the acquisition commissionearned back to the insurance company.
Liability: Example (1)
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© SAP AG FS320 9-14
SAP AG 2004
Calculation:
1. Business case on 01.08.2002(new acquisition of a life insurance policy with an insured amount of USD
100,000)
Valuation result = USD 90,000 (e.g. 90% of USD 100,000 insured amount)Paid commission (APL) USD 4,500 (e.g. 5% of the remuneration base)Liability period (01.08.2002 -01.08.2004)
2. Business case on 01.02.2003(reduction of the insured amount for the life insurance to USD 60,000)
a) Valuation result = USD -36,000 (= 90% of USD -40,000)b) Recall (commission) USD - 1,800 (5%, cancellation liability = 100 %)
Liability: Example (2)
Example 1
Reduction in
the
first y
ear
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© SAP AG FS320 9-15
SAP AG 2004
Calculation:
1. Business case on 01.08.2002(new acquisition of a life insurance policy with an insured amount of USD
100,000)
Valuation result = USD 90,000 (e.g. 90% of USD 100,000 insured amount)Paid commission (APL) USD 4,500 (e.g. 5% of the remuneration base)Liability period (01.08.2002 -01.08.2004)
2. Business case on 01.10.2003(reduction of the insured amount for the life insurance to USD 60,000)
a) Valuation result = USD -36,000 (= 90% of USD -40,000)b) Recall (commission) USD -900 (5%, cancellation liability = 50 %)
Liability: Example (3)
Example 2
Reduction in
the
second year
Bernard
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© SAP AG FS320 9-16
SAP AG 2004
Describe the use of liability agreements
You are now able to:
Unit Summary
Bernard
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© SAP AG FS320 10-1
SAP AG 2004
Participation
Participation agreement
Forms of participation
Participation roles
Participation constellations
Contents:
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© SAP AG FS320 10-2
SAP AG 2004
Explain what the participation agreement covers
Describe the forms of participation in the Commission System
Configure participation roles
Configure participation constellations
At the conclusion of this unit, you will be able to:
Unit Objectives
Bernard
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© SAP AG FS320 10-3
SAP AG 2004
Course Overview
LiabilityLiability
Commission CaseCommission Case
ParticipationParticipation
Due datesDue dates
BonusBonus
Flat Rates and GuaranteesFlat Rates and Guarantees
Closing / Closing / SettlementSettlement
StoryStory
Commission contractsCommission contracts
Organization Organization
Business PartnerBusiness Partner
Generating ProgramGenerating Program
Business Objects andBusiness Objects andActivitiesActivities
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing ReportingReporting
Stor
yM
aste
r Dat
aPr
epar
atio
nC
omm
issi
on
Cas
e
Com
mis
sion
Cas
ePe
riodi
c Ta
sks
Info
Bernard
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© SAP AG FS320 10-4
SAP AG 2004
LiabilityLiability
Commission CaseCommission Case
ParticipationParticipation
DueDue datesdates
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing
Commission Commission contractscontracts
OrganizationOrganization
Business Partner Business Partner
Mas
ter D
ata
GeneratingGenerating ProgramProgram
Business Business ObjectsObjects and and ActivitiesActivitiesPr
epar
atio
n
Com
mis
sion
Cas
e
Scenario 1 [New markets – new products ]
Bernard
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© SAP AG FS320 10-5
SAP AG 2004
Insurance Inc. pays commission both to direct and to indirect participants in a commission case.This means, for example, that Insurance Inc. pays commission to the commission contract partners and to the people who support them.
Business Scenario
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© SAP AG FS320 10-6
SAP AG 2004
Participation Agreement
The participation agreement governsWhich role a partner may take in the acquisitionWhich participants (roles and commission contract types) the partner may work together with (participation constellation)
Forms of participation:Several partners are involved in an acquisitionThose acting as agents for contracts and those taking care of in-force business can all profit from an insurance policyIndependent commission contract partners and brokers can pay commission to their own agents for activities (for example, difference commission)Managers, consultants, trainers, and so onPeople looking after commission contract partners (overriding commission)
Participation:
A participation represents the services provided by more than one participant, and displays the summary of more than one direct participant. Participations can differ within a commission case. This is, for example, because the person supporting in-force business (who may also be the direct participant) can switch between the validity start dates for two object versions.
Example:
- As part of business development, life insurance and health insurance are sold in an insurance policy. Agent one was responsible for the life insurance, and agent two for the health insurance. Both are participants in their commission.
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© SAP AG FS320 10-7
SAP AG 2004
Examples
Positions (types)Sub-agentIndependent agentDistrict managerRegional director
Participation rolesMain producerCo-producerIn-force business supportSupporting consultantManagementCommission contract partner administrator
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© SAP AG FS320 10-8
SAP AG 2004
Comncase
Partic-ipation
Partic-ipant
Partic-ipationrole
% rateComn
% rateProduct
Comncont no.
Standardcomncontract
Comn contdirectParticipnt
Participtnconstelltn
5432 1 1 Mainagent
0 100 234567 Independentagent
27
5432 1 2 Sub-agent
50 0 333444 Part-timeagent
27
5432 1 3 Sub-agent
50 0 333555 Part-timeagent
27
Example: Direct Participants
Bernard
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© SAP AG FS320 10-9
SAP AG 2004
Direct participants
BB
Indirect participants
Commissioncase
Manager 11
Commission-contract-relatedparticipation
Constellations allow you to control remunerationwith direct participants
Manager 12
CCase-relatedparticipation
FTA
PTPTCase-relatedparticipation PT
BBObject-relatedparticipation• Customer• In-force
Structure-relatedparticipation
Structure-relatedparticipation
Manager 3
Organizational Structure and Participation Roles
Direct participant:
Commission partners who are directly involved in the commission case are direct participants. The partners participating can be on the same hierarchy level, or at a higher or lower level to each other.
Indirect participant:
Commission contract partner who has been determined. The participant who is indirectly involved is, for example, derived from the item in the organizational structure. You cannot divide up the remuneration of an indirect participant.
Participation role:
Describes the type of participation in a commission case. An insurance policy enables the following types of participation in a commission case:
- Sole producer
- Co-producer
- Consultancy
- Support
- Management
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© SAP AG FS320 10-10
SAP AG 2004
Sales
Sales management
Sales area 1
Manager sales area 1
Consultant Life
Consultant Non- life
Sales area 2
Sales area 3
Manager sales area
3
Manager sales area 2
Regional management
11
Regional management
12
Regional management
13
Management11
Management13
Management12
Agency 111
Agency owner 111
Agency 112
Agency owner 112
Subagency1322
Subagent1322
Subagency1323
Subagent1323
Agency 133
Agency owner 133
Agency 131
Agency owner 131
Employee agent 1311
Employeeagent 1312
Agency 132
Agency owner 132
“Supporting”: ComnShare
“Involved”: DifferenceComn
“Support”: Overriding
“Support”: Overriding
Example of Structure-Related Participation
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© SAP AG FS320 10-11
SAP AG 2004
Commission contract "7"for Mr. Higgins
Commission contract "8"for Mrs. Miller
Between01.01.200x and31.12.200xMrs. Hill always receives 20% of the direct remuneration.
Example of Contractual Participation
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© SAP AG FS320 10-12
SAP AG 2004
Participation Entitlement Categories
Entitlement categories classify the entitlements of the participants
Structural participation for managers
Structural participation for consultants
Activity-related participation
Participation based on commission contract
Participation based on object (without functions)
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© SAP AG FS320 10-13
SAP AG 2004
Constellations define how many people can participate in a transaction, and in which role.
This helps determine default values for distributing direct and indirect remuneration in cases where no alternative distribution rates have been sent to the interface.
Participation Constellation
Participation constellation:
A participation constellation comprises commission contract types and participation roles. The commissions system recognizes these participation constellations and is able to include them when determining the commission calculation and valuation if required.
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© SAP AG FS320 10-14
SAP AG 2004
You are now able to:
Explain what the participation agreement covers
Describe the forms of participation in the Commission System
Configure participation roles
Configure participation constellations
Unit Summary
Bernard
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© SAP AG FS320 11-1
SAP AG 2004
Determine due dates
Contents:
Due dates
Bernard
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© SAP AG FS320 11-2
SAP AG 2004
to describe the determination of the due dates
At the conclusion of this unit, you will be able to:
Unit Objectives
Bernard
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© SAP AG FS320 11-3
SAP AG 2004
Course Overview
LiabilityLiability
Commission CaseCommission Case
ParticipationParticipation
Due datesDue dates
BonusBonus
Flat Rates and GuaranteesFlat Rates and Guarantees
Closing / Closing / SettlementSettlement
StoryStory
Commission contractsCommission contracts
Organization Organization
Business PartnerBusiness Partner
Generating ProgramGenerating Program
Business Objects andBusiness Objects andActivitiesActivities
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing ReportingReporting
Stor
yM
aste
r Dat
aPr
epar
atio
nC
omm
issi
on
Cas
e
Com
mis
sion
Cas
ePe
riodi
c Ta
sks
Info
Bernard
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© SAP AG FS320 11-4
SAP AG 2004
LiabilityLiability
Commission CaseCommission Case
ParticipationParticipation
DueDue datesdates
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing
Commission Commission contractscontracts
OrganizationOrganization
Business Partner Business Partner
Mas
ter D
ata
GeneratingGenerating ProgramProgram
Business Business ObjectsObjects and and ActivitiesActivitiesPr
epar
atio
n
Com
mis
sion
Cas
e
Scenario 1 [New markets – new products ]
Bernard
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© SAP AG FS320 11-5
SAP AG 2004
The remuneration amounts can be paid as follows:
• Disburse the calculated amounts immediately andpossibly apply a liability scenario
• Disburse the calculated amounts in different layers(legal right to future commission).
Legal Right to Future Commission
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© SAP AG FS320 11-6
SAP AG 2004
Legal Right to Future Commission
If rules for the legal right have not been maintained for this type of remuneration:
The calculated remuneration entitlements are due on the posting date
If a rule for the legal right has been maintained for the remuneration type:
The calculated remuneration entitlements are divided up into different payment sections (according to the legal right rule) with different due dates.
Bernard
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© SAP AG FS320 11-7
SAP AG 2004
You are now able to:
to describe the determination of the due dates
Unit Summary
Bernard
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© SAP AG FS320 12-1
SAP AG 2004
Commission Case [ Commission document ]
The commission case
The commission document
Contents:
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© SAP AG FS320 12-2
SAP AG 2004
At the conclusion of this unit, you will be able to:
Unit Objectives
Create and post a commission case
Track the processes in the commission case(log)
Create documents manually
Bernard
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© SAP AG FS320 12-3
SAP AG 2004
Course Overview
LiabilityLiability
Commission CaseCommission Case
ParticipationParticipation
Due datesDue dates
BonusBonus
Flat Rates and GuaranteesFlat Rates and Guarantees
Closing / Closing / SettlementSettlement
StoryStory
Commission contractsCommission contracts
Organization Organization
Business PartnerBusiness Partner
Generating ProgramGenerating Program
Business Objects andBusiness Objects andActivitiesActivities
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing ReportingReporting
Stor
yM
aste
r Dat
aPr
epar
atio
nC
omm
issi
on
Cas
e
Com
mis
sion
Cas
ePe
riodi
c Ta
sks
Info
Bernard
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© SAP AG FS320 12-4
SAP AG 2004
LiabilityLiability
Commission CaseCommission Case
ParticipationParticipation
DueDue datesdates
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing
Commission Commission contractscontracts
OrganizationOrganization
Business Partner Business Partner
Mas
ter D
ata
GeneratingGenerating ProgramProgram
Business Business ObjectsObjects and and ActivitiesActivitiesPr
epar
atio
n
Com
mis
sion
Cas
e
Scenario 1 [New markets – new products ]
Bernard
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© SAP AG FS320 12-5
SAP AG 2004
The commission case determines the following using the commission data that has been transferred:
Which participants (direct and indirect) are to get one or more remuneration paymentsWhich remuneration amounts are to be paidHow long these remuneration amounts are applicable for liabilityWhen these remuneration amounts are due
These remuneration amounts, due dates and the recipients must be specified for the commission document.
Liability is not taken into account for commission documents that have been created directly.
Commission Case vs. Commission Document
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© SAP AG FS320 12-6
SAP AG 2004
Commission Case
Commission Case
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© SAP AG FS320 12-7
SAP AG 2004
Process
Disbursement system
Comncontract
Salesorganization Pending/
parked
Settle
Post Comnaccount
Totalsaccount
Totalsaccount
DetermineValuate
Remunerate
Accept
Commission CaseCommission activitiesParticipants
Object information
Close
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© SAP AG FS320 12-8
SAP AG 2004
Commission Case
Structured inbound interface with information on participants, activities and objects relevant for commission (can be enhanced using the generating program)
Customer field enhancements to the inbound interface, with no modification necessary (can be enhanced using the generating program)
Possibility to include the SAP condition technique for valuation and remuneration (can be enhanced using rules)
Controlled process run (can be enhanced using exits)
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© SAP AG FS320 12-9
SAP AG 2004
Commission Case Model (1)
Business objectversion (n)
Commission case
Business objectversion (n+1)
Business transaction
BusinessObjTypeBusinessObjIdentificationBusinessObjVersionBusTransTypeBusTransIdentificationBusTransVersion
Reporting of new business object status or any changes possible
Type: Insurance contractLIFE-policy <6000>Version 1
createCommission Case No. <1>Version 1
Examples of business object type, business transaction and resulting commission cases: Insurance policy - transactions signing, change and monthly-/yearly support In-force support - transaction cancellation quota view for bonuses Claims quota for in-force with support Employees who receive support - transaction Production total view within a certain period for overriding commission
Consultations, service activities, and so on.
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© SAP AG FS320 12-10
SAP AG 2004
Commission case
Commission Case Model (2)
ComnCase(header)
ComnTriggering(sub)object
Participation
Participant ComnDoc
Activity
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© SAP AG FS320 12-11
SAP AG 2004
Recording Commission Cases (1)
The interface for commission case entry is generated in the generator. There are various options. You accept the interface delivered by SAP, without changes. You use the generator to control how your interface should look.
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© SAP AG FS320 12-12
SAP AG 2004
Recording Commission Cases (2)
Execute and save ComnCase
Execute ComnCaseWITHOUT saving (simulation)
Save ComnCase as a recording variant
ComnCase acceptance test WITHOUT saving
Read ComnCase from variants
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© SAP AG FS320 12-13
SAP AG 2004
Recording Commission Cases (3)
Read parts of data on comn case from old cases
Set future comn cases for the same subobject to pending
Processing target(acceptance, parking, release...)
Flag determined due dates immediately as cleared
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© SAP AG FS320 12-14
SAP AG 2004
Recording Commission Cases (4)
Effective access date in master data and Customizing
Technical access date in master data and Customizing
Assignment date in ledgerand due date basis date
Not currently used for process control (for information purposes only - use in accordance with SAP)
Selection date for viewing early cancellations
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© SAP AG FS320 12-15
SAP AG 2004
Recording Commission Cases (5)
Graphical view of relationships between participants
Recording of participant relationships and shares(here we have 2 direct participants at manager level)
Selection of entitlement category (entitlement group)
Alternative, supplementary and additional remuneration
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© SAP AG FS320 12-16
SAP AG 2004
Recording Commission Cases (6)
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© SAP AG FS320 12-17
SAP AG 2004
Recording Commission Cases (7)
Graphical view of business object subobjects
All objects in this category including THEIR attributes
Subobject category currently being processed
Umbündelungs-informationen
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© SAP AG FS320 12-18
SAP AG 2004
Recording Commission Cases (8)
View of comn document and log, as for directdocument recording
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© SAP AG FS320 12-19
SAP AG 2004
Activity 1
Activity 2
Commission case
Commission Case & Document
Remuneration 1
Remuneration 2
Commission doc.
Primary entry• Describes external business
transaction• Commission process
administration
Commission case movement• Valuation• Remuneration/ liability• Due date
Subsequent movement• Closure (flat rates/guarantee)• Settlement
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© SAP AG FS320 12-20
SAP AG 2004
buchen
Provisionsfall aus Vorsystemen
Schwebe/Vorer-
fassung
Provisions-konto
Summen-konto
Summen-konto
ProvisionsfallProvisionsaktivitäten
ObjektinformationenBeteiligte
Provisions-vertrag
Vertriebs-organisation
annehmen
verrechnenvergütenbewertenermitteln
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© SAP AG FS320 12-21
SAP AG 2004
… calculation process ...Participant determination
ValuationDistribution
Remuneration/ liability
Due date determination
Create/Simulate Version of a Comn Case
Commission case (DB)Interface
Comn doc**) (DB)
DB*) DB*)
Check
DB case ⊆ comn case (meta) ⇒ comn doc (meta) ⊇ DB doc… step-by-step derivation and transfer ...
Log
*) does not apply to simulations**) if comn case is not rejected
Dialogue direct input/iDoc
Remuneration clearing
DB = Object as it is contained in the database in terms of content. Meta = Object as it is derived and converted in processing. The meta level contains the DB level.
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© SAP AG FS320 12-22
SAP AG 2004
Creating/Simulating Commission Cases
Processing log:• Warnings, errors and
detailed information• User parameters control the
level of detail in the display
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© SAP AG FS320 12-23
SAP AG 2004
Commission document
Commission document
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© SAP AG FS320 12-24
SAP AG 2004
Business Scenario
The head of sales at a district branch of Insurance Inc. wishes to give a field-force employee special, one-time remuneration.
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© SAP AG FS320 12-25
SAP AG 2004
Overview
The commission document is the central object in thecommission account.
Documents map processes that lead to changes in the commissionaccount. There are remunerating processes and settling processes.
Normally a document is created automatically in the commissionsystem when a new commission case is accepted.
However, documents that are not dependent on commission casescan also be created manually.
Remunerating Processes (commission determination, periodic closing) form the entitlement to remuneration, where the settling processes (disbursement), clear the items with settlement.
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© SAP AG FS320 12-26
SAP AG 2004
Process
Disbursement system
Comncontract
Salesorganization Pending/
parked
Settle
Post Comnaccount
Totalsaccount
Totalsaccount
DetermineValuate
Remunerate
Accept
Commission CaseCommission activitiesParticipants
Object information
Close
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© SAP AG FS320 12-27
SAP AG 2004
Creating Documents in the Commission System
Commissionaccount
ComnDocCommission case
Manualdocument posting
Closureguarantees
Disbursement
Closureflat-rates
Commission case entered
Commission case documents with business object and activity-based remunerations
Remuneration details via special remunerations
Direct document entry
Further document types for special transactions
Create periodic processing runs
Guarantee and flat rate documents
or
Settlement documents
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© SAP AG FS320 12-28
SAP AG 2004
Types of Direct Document Entry
Ways of Direct Document Creation
Remuneration posting
Remuneration and due date posting
Reposting remuneration and due dates (zero balance)
Reposting due dates (zero balance)
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© SAP AG FS320 12-29
SAP AG 2004
Functions of Direct Document Creation (1)
General functionsRemuneration items create due date items in accordance with the contract
System caters for alternative distribution of due dates
Results are given in the contract currencyIf another currency is given, conversion takes place
If no other currency is given, the application currency is used
Any additional value in the application currency is displayed
Any remuneration detail lines will overwrite the remuneration lines. If there are no detail lines, they will be constructed such that the remuneration lines can be built up again
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© SAP AG FS320 12-30
SAP AG 2004
Functions of Direct Document Creation (2)
General functionsRecording previously settled remuneration
Clearing items are set for each due date
Clearing items are not included in balance analysis (see below).
Qualifying authorizations can be defined for each document type
Quantifying authorizations can be defined for each field
Update of all defined totals tables
All functions accessible through EDT
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© SAP AG FS320 12-31
SAP AG 2004
Direct Document Creation (1)
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© SAP AG FS320 12-32
SAP AG 2004
Direct Document Creation (2)
First choose the document type
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© SAP AG FS320 12-33
SAP AG 2004
Direct Document Creation (3)
Partial areas and their fields are
reduced accordingly
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© SAP AG FS320 12-34
SAP AG 2004
You are now able to:
Create and post a commission case
Track the processes in the commission case (log)
Create documents manually
Unit Summary
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© SAP AG FS320 13-1
SAP AG 2004
Bonus Payments
in the Commission System
Contents:
Bonus Payments
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© SAP AG FS320 13-2
SAP AG 2004
At the conclusion of this unit, you will be able to:
Bonus Payments
Explain the processing of bonus payments
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© SAP AG FS320 13-3
SAP AG 2004
Course Overview
LiabilityLiability
Commission CaseCommission Case
ParticipationParticipation
Due datesDue dates
BonusBonus
Flat Rates and GuaranteesFlat Rates and Guarantees
Closing / Closing / SettlementSettlement
StoryStory
Commission contractsCommission contracts
Organization Organization
Business PartnerBusiness Partner
Generating ProgramGenerating Program
Business Objects andBusiness Objects andActivitiesActivities
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing ReportingReporting
Stor
yM
aste
r Dat
aPr
epar
atio
nC
omm
issi
on
Cas
e
Com
mis
sion
Cas
ePe
riodi
c Ta
sks
Info
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© SAP AG FS320 13-4
SAP AG 2004
Scenario 3 [Periodic Tasks – Commission Clerk]
BonusBonus
FlatFlat RatesRates
Perio
dic
Task
s
ClosingClosing
SettlementSettlement
GuaranteesGuarantees
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© SAP AG FS320 13-5
SAP AG 2004
Individual agreements:
You need to define the entitlement to a bonus payment in the commission contract.
Contractual Prerequisite -> Bonus Payment
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© SAP AG FS320 13-6
SAP AG 2004
Execute bonus run
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© SAP AG FS320 13-7
SAP AG 2004
REMUNERATION CATEGORY
FREQUENCY
ACTIVITY
VALUATION
LIABILITYFS-CS
Performance-related remuneration
Time frame of the activity
Agreement for additional commission cases
Performance = activity
Bonus - commission case
Integration of Bonuses in the Commission System
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© SAP AG FS320 13-8
SAP AG 2004
31.12.
Agreementadditional
commission cases
Period(s)
commission case trigger
rule
Creation ofcommission case
data by FS-CS
determines the reward
ICM triggers the commission case - Business object- Business case- Subobjects- Participant- Activities etc.
Key date
Main Process: Additional Commission Case (Bonus)
Subobjects carry information on the success of the representative Examples:
-Production total for life insurance -Monthly premium for health insurance -Earned commission -Cancellation rate -Loss ratio
The data is collected by means of a logical service.
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© SAP AG FS320 13-9
SAP AG 2004
Additional Commission Case - Trigger (1)
Commission case trigger
Commission case trigger
Commission case cause
Period rule
Processing target
T1
12
9
01.03.2001Commission trigger from
Commission trigger to 31.12.2002
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© SAP AG FS320 13-10
SAP AG 2004
Totalstable
Totalstable
Additional Commission Case - Trigger (2)
Commission case trigger
Total data for bonus run
Customer-specific table
Data
Commissionaccount External data
Data
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© SAP AG FS320 13-11
SAP AG 2004
ActivityParticipation Object data
Additional Commission Case - Trigger (3)
Commission case trigger
Commission case (bonus)
Total data for bonus run
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© SAP AG FS320 13-12
SAP AG 2004
You are now able to:
Explain the processing of bonus payments
Unit Summary
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© SAP AG FS320 14-1
SAP AG 2004
Flat rates and guarantee agreements
Account assignment types for flat rates and guarantees
Period rules
Limits
Excess- and short cover for guarantees
Creditable remuneration types for guarantees
Contents:
Flat Rates and Guarantees
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© SAP AG FS320 14-2
SAP AG 2004
Describe flat-rate remuneration types and guarantees
At the conclusion of this unit, you will be able to:
Unit Objectives
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© SAP AG FS320 14-3
SAP AG 2004
Course Overview
LiabilityLiability
Commission CaseCommission Case
ParticipationParticipation
Due datesDue dates
BonusBonus
Flat Rates and GuaranteesFlat Rates and Guarantees
Closing / Closing / SettlementSettlement
StoryStory
Commission contractsCommission contracts
Organization Organization
Business PartnerBusiness Partner
Generating ProgramGenerating Program
Business Objects andBusiness Objects andActivitiesActivities
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing ReportingReporting
Stor
yM
aste
r Dat
aPr
epar
atio
nC
omm
issi
on
Cas
e
Com
mis
sion
Cas
ePe
riodi
c Ta
sks
Info
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© SAP AG FS320 14-4
SAP AG 2004
Scenario 3 [Periodic Tasks – Commission Clerk]
BonusBonus
FlatFlat RatesRates
Perio
dic
Task
s
ClosingClosing
SettlementSettlement
GuaranteesGuarantees
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© SAP AG FS320 14-5
SAP AG 2004
Insurance Inc. provides its agents with guarantees and on-going flat rates.
Business Scenario
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© SAP AG FS320 14-6
SAP AG 2004
Overview
When a commission contract partner first assumes an agent's activities, the earnings are usually not enough to live on for the first few months, or even years. For this reason, he or she is granted either a fixed subsidy or a guarantee.
Unlike guarantees, flat rates are not usually offset against commission. Flat rates are also agreed for a certain period of time, but are treated like subsidies.
Being granted a guarantee means that the commission contract partner receives a guaranteed minimum amount (taking into account the commission).
Typical guarantees include acquisition commissions for each division (such as life, health and non-life insurance)
Typical flat-rates include office or transport costs, or PC rental flat-rates.
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© SAP AG FS320 14-7
SAP AG 2004
Post
Settle
Accept
OffsetRemunerate
Valuate
Process
Disbursement system
commissioncontract
Salesorganization Pending/
parked
Commissionaccount
Totalsaccount
Totalsaccount
Commission caseCommission activitiesAlternative remuneration
Object information
Businesspartner
Determine
Close
Participants
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© SAP AG FS320 14-8
SAP AG 2004
Individual agreements:
The entitlement to flat rate payments must be defined in the commission contract.
Examples:
• Office expense
allowance
• Flat rates fo
r IT
equipment
Contractual Prerequisite -> Payment of Flat Rates
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© SAP AG FS320 14-9
SAP AG 2004
Individual agreements:
The entitlement to flat rate payments must be defined in the commission contract.
Contractual PrerequisiteFor Possible Guarantee Payments
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© SAP AG FS320 14-10
SAP AG 2004
Guaranteeremuneration type 1
Guaranteeremuneration type n Remuneration type n
Remuneration type 1
Remuneration type 3
Remuneration type 2
In the standard guarantee agreement, performance-related remuneration types, for which a guarantee has been granted, are assigned to guarantee remuneration types
Remuneration Types: Guarantee – Performance-Related
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© SAP AG FS320 14-11
SAP AG 2004
Sub-threshold earnings
Term
Remuneration
Period 1 Period 2 Period 3
Guarantee amount
Excess earnings
Credited sub-threshold earnings
Excess/Sub-Threshold Earnings
If the total of the chargeable remunerations is less than the specified guarantee amount, then the paid guarantee is displayed as being sub-threshold earnings.
If the total of the chargeable remunerations is higher than the guarantee amount, then the excess amount is displayed as excess earnings.
In addition, agreements can be made on possible recalls. For example, to offset excess earnings against sub-threshold earnings from previous settlement periods up to the beginning of the current settlement period.
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© SAP AG FS320 14-12
SAP AG 2004
Describe flat-rate remuneration types and guarantees
You are now able to:
Unit Summary
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© SAP AG FS320 15-1
SAP AG 2004
Closing run
Settlement agreements
Settlement run
Contents:
Settlement and Disbursement
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© SAP AG FS320 15-2
SAP AG 2004
Close periods and settle commission accounts
At the conclusion of this unit, you will be able to:
Unit Objectives
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© SAP AG FS320 15-3
SAP AG 2004
Course Overview
LiabilityLiability
Commission CaseCommission Case
ParticipationParticipation
Due datesDue dates
BonusBonus
Flat Rates and GuaranteesFlat Rates and Guarantees
Closing / Closing / SettlementSettlement
StoryStory
Commission contractsCommission contracts
Organization Organization
Business PartnerBusiness Partner
Generating ProgramGenerating Program
Business Objects andBusiness Objects andActivitiesActivities
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing ReportingReporting
Stor
yM
aste
r Dat
aPr
epar
atio
nC
omm
issi
on
Cas
e
Com
mis
sion
Cas
ePe
riodi
c Ta
sks
Info
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© SAP AG FS320 15-4
SAP AG 2004
Scenario 3 [Periodic Tasks – Commission Clerk]
BonusBonus
FlatFlat RatesRates
Perio
dic
Task
s
ClosingClosing
SettlementSettlement
GuaranteesGuarantees
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© SAP AG FS320 15-5
SAP AG 2004
Business Scenario
The period that has just finished must be closed, the commission account settled and relevant data passed on to the disbursement system.
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© SAP AG FS320 15-6
SAP AG 2004
Process
Disbursement system
Commissioncontract
Salesorganization
Pending/parked
Settle
Post Commissionaccount
Totalsaccount
Totalsaccount
DetermineValuate
Remunerate
Accept
Commission caseCommission activitiesParticipants
Object information
Close
During this process, settlement is triggered at the end of the period. Flat-rates and guarantees are calculated and credited to the agent's account.
The agent's account is settled to the disbursement system.
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© SAP AG FS320 15-7
SAP AG 2004
Closing operations Settlement
Due dates
FS-CD
Settlementdocument
disbursement
?
Calculation offlat-rates
Calculation ofguarantee
Determination of cancellation reserve
for eachcommission contract
Clearing postingto
disbursement system
Closing documentguarantee
Closing documentflat-rates
Commission case
ValuationRemuneration...
Commission case
Detailed Process
The documents created during settlement are given the stored due dates and then saved.
During the settlement run, only the due documents for flat-rates, guarantees and performance-related remunerations are grouped into settlement types. The cancellation reserve and the disbursement document are created.
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© SAP AG FS320 15-8
SAP AG 2004
Closing Run
Closes the period
Performed separately for flat-rates and guarantees
Credits remuneration to commission account
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© SAP AG FS320 15-9
SAP AG 2004
Closing Tasks: Closing Run (II)
Guarantees:
The closing run calculates and posts guarantees in FS-CS.
Commission contracts and remuneration types can be closed separately.
If a guarantee agreement has excess earnings, it is possible tocalculate the recall amount.
Choose:Tools -> Periodic Tasks -> Closing
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© SAP AG FS320 15-10
SAP AG 2004
Closing Tasks: Closing Run (I)
Flat-rate remuneration:
The closing run calculates and posts flat rates in FS-CS.
Commission contracts and remuneration types can be closed separately.
Choose:Tools -> Periodic Tasks -> Closing
In closing tasks, the system calculates the guarantees and flat rates due on the key date.
The calculations refer to the reference period for the standard remuneration agreement, and run on the specified key date.
When executing the test run, the counter is reset for settlement runs.
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© SAP AG FS320 15-11
SAP AG 2004
Closing Tasks: Closing Run (III)
Calling up the detailed log for the closing run:
Transaction: CACSLOGDIS
Or choose: Info-System Log Files Closing Flat Rate and Guarantee
Selection criterion:"Closing (flat rates, guarantees)"
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© SAP AG FS320 15-12
SAP AG 2004
Settlement
FS-CS has three different types of settlement:
Settlement with period-end closing
A period is included in a final settlement run, and so is flagged as being closed.
Temporary settlement
All outstanding due dates in a period are selected. The period is, however, flagged as not being closed.
Subperiodic settlement
The key date is before the end of the analyzed period.Therefore, only the last period can be regarded as being subperiodic when more than one period is settled.
Settlement is periodic processing, which is executed in defined phases, such as monthly.
For various reasons, it may be desirable to execute settlement on a subperiodic basis, such as:
Interim payments for longer settlement periods
Various period views (twice per month, but not every 14 days)
For a thirteenth settlement period when changing the fiscal year (twelfth settlement is subperiodic, the thirteenth settlement is final).
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© SAP AG FS320 15-13
SAP AG 2004
Settlement Type (I)
Definition of "Settlement Type":A settlement type classifies settlement account assignmentsand the payment system.
Settlement types are assigned to remuneration types.
The remuneration types that have been assigned contain account assignment types and account assignment information (payables, cost center and cost element for example).
Attributes for account assignment are defined in the generating program.
Summarization of certain remuneration types is executed to be able to apply various cancellation reserve rules to these groups, for example.
Information or rules are also defined for these settlement types (disbursement system, description of cancellation reserve …).
The disbursement sytem (such as SAP FS-CD) can be defined in Customizing.
The disbursement account can be defined in the contract.
Categories of settlement types:
Settlement without reserve (disbursement)
Settlement with reserve (cancellation reserve)
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© SAP AG FS320 15-14
SAP AG 2004
Settlement Type (II)
Settlement types include:
Settlement without reserves
All open, due date documents are selected and transferred to the payment system
Settlement with reserves
All the outstanding documents are totaled.
Documents that have already been calculated (from past periods) are also taken into account for the cancellation reserve calculation.
The system checks how much cancellation reserve needs to be calculated and how much has already been posted for the period.
Settlement with Reserve
All open documents are totalled for the open periods (if none are available, no calculation takes place – no recalculation). To calculate the reserve, documents that have already been calculated are analyzed for the currently processed periods (from previous runs).
The system checks the totals for the documents already calculated and the open items. The system checks how much reserve is to be calculated, and how much reserve is already posted for the period.
The entire reserve, meaning that which has been calculated up to that point, is analyzed (from previous and later periods).
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© SAP AG FS320 15-15
SAP AG 2004
Settlement Agreement
Definition of "settlement agreement":The settlement agreement provides the settlement information (rules) that are required for the summarization of the commission payments.
The settlement agreement also defines whether cancellation reserves are to be retained and, if so, to what extent
As a percentage of the disbursement amount (determines the extent of cancellation reserve formation)
As a threshold value of the disbursement amount, above which, a part is transferred to the cancellation reserve
As a maximum amount of the cancellation reserve
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© SAP AG FS320 15-16
SAP AG 2004
Settlement Run (I)
During the settlement run, the disbursement amount for the commission recipient is calculated and transferred to the disbursement system.
The settlement run...is normally executed periodically
can be executed selectively for commission contract accounts and settlement types
disburses all remunerations (or demands back remunerations), which are due on the settlement key date.
Either the run date or any other date can be selected as the key date.
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© SAP AG FS320 15-17
SAP AG 2004
Settlement Run (II)
The period before the current one:
The “settle closed” indicator is used to mark the periods before the current one as closed.
The current period:
The “current period temporary” indicator is used to select the openitems, but the period is not markedas closed.
The “current period subperiodic” indicator is similar to the temporarysettlement, but the key date entered lies before the end of the analyzedperiod.
The reversal reserve is calculated in the disbursement. The amount intended for disbursement is forwarded to the disbursement system.
Disbursement can be executed individually for commission contracts and settlement types.
When executing a test run, the settlement runs counter is set high.
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© SAP AG FS320 15-18
SAP AG 2004
Settlement Lock (I)
Disbursement only after release
Settlement reports a document to the payment system when it is due.
A “settlement lock indicator” can be used to prevent this.
The due date is only settled when another event occurs (for example, the customer has paid a premium).
With actual commission calculation, the due date against the agent is only settled when the customer has paid. The payment from the customer is reported to the commission system using an operational system (such as the Collections/Disbursements system). The commission system then initiates the disbursement.
The actual due date for the time at which the case is created is therefore initially open.
The settlement lock indicator “SETT_LOCK” ( waits for subsequent processes) can be found in the <ANW>_DOCSE (z.B. CACS00_DOCSE) table.
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© SAP AG FS320 15-19
SAP AG 2004
Settlement Lock (II)
Settlement lock indicator
Setting the settlement lock indicator
... Using the commission caseThe settlement lock is reported to FS-CS by an external system, using the commission case data.
... Using a ruleThe settlement lock can be included in the valuation and/or remuneration, and is supplied using an appropriate appropriate calculation rule(logical service).
If the settlement lock indicator is reported to IS-CS using the commission case, the settlement lock must be included using the construction (generator).
Example: The decision as to whether a settlement lock takes place depends on the “tariff - 8010“ subobject. The settlement lock must be included in the “tariff - 8010” object data, using the construction (generator).
The settlement lock indicator can be expanded using the generated function module <ANW>_RFC_SETT_LOCK_FLS (for example, CACS00_RFC_SETT_LOCK_FLS).
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© SAP AG FS320 15-20
SAP AG 2004
You are now able to:
Close periods and calculate flat-rates and guarantees
Settle the commission account and send relevant data to disbursement system
Unit Summary
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© SAP AG FS320 16-1
SAP AG 2004
Reporting
Content:
Reporting
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© SAP AG FS320 16-2
SAP AG 2004
Describe possibility to handle the reporting requirements
At the conclusion of this unit, you will be able to:
Unit Objectives
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© SAP AG FS320 16-3
SAP AG 2004
Course Overview
LiabilityLiability
Commission CaseCommission Case
ParticipationParticipation
Due datesDue dates
BonusBonus
Flat Rates and GuaranteesFlat Rates and Guarantees
Closing / Closing / SettlementSettlement
StoryStory
Commission contractsCommission contracts
OrganizationOrganization
Business PartnerBusiness Partner
Generating ProgramGenerating Program
Business Objects andBusiness Objects andActivitiesActivities
ValuationValuation
Remuneration and Remuneration and Remuneration ClearingRemuneration Clearing ReportingReporting
Stor
yM
aste
r Dat
aPr
epar
atio
nC
omm
issi
on
Cas
e
Com
mis
sion
Cas
ePe
riodi
c Ta
sks
Info
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© SAP AG FS320 16-4
SAP AG 2004
Scenario 4 [Reporting]
Commission Commission AccountAccount
WebWeb--Access [Access [Comm.receipiantComm.receipiant]]
Rep
ortin
g
SAP Business SAP Business WarehouseWarehouse
......
Management Report‘s Management Report‘s
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© SAP AG FS320 16-5
SAP AG 2004
Business Scenario
The period that has just been settled is to be evaluated at commission account level.
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© SAP AG FS320 16-6
SAP AG 2004
Scenario 4 [Reporting]
Commission Commission AccountAccount
WebWeb--Access [Access [Comm.receipiantComm.receipiant]]
Rep
ortin
g
SAP Business SAP Business WarehouseWarehouse
......
Management Report‘s Management Report‘s
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© SAP AG FS320 16-7
SAP AG 2004
Post
Settle
Accept
OffsetRemunerate
Valuate
Process
Disbursement system
commissioncontract
Salesorganization Pending/
parked
Commissionaccount
Totalsaccount
Totalsaccount
Commission caseCommission activitiesAlternative remuneration
Object information
Businesspartner
Determine
Close
Participants
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© SAP AG FS320 16-8
SAP AG 2004
Commission Account Functions
The commission account provides a variable view of the commission documents.
Field enhancements can easily be carried out to the commission account, with no modification necessary.
Commission documents consist of:Valuation items
Remuneration items, including liability
Due date items.
You can also create documents manually for special transactions (for example, advance payments).
Unlike SAP Collections/Disbursements, the commission account is not an entity in itself.
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© SAP AG FS320 16-9
SAP AG 2004
Commissionaccount
Flat-rates
Guarantees
ComnContractRemuneration 1
Remuneration 2
ComnContractReserves
Settlement
ComnContract
ComnCase ComnDoc
Commission case Closure Settlement
Disbursementsystem
Comn Account: Entries, Closure and Settlement
Documents are created as a result of changes in the policy system and period closing /settlement. The contract is always referred to in these cases.
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© SAP AG FS320 16-10
SAP AG 2004
Commissionaccount
Commission Account: Assignment
Disbursementledger/account
m
n
Agreement 1
Agreement 2
Commission contract
Commissioncontract partner
1n
11 1
Document headerDocument header
Document headerItem 1Item 2
..
Item nn
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© SAP AG FS320 16-11
SAP AG 2004
Valuation items
Remunerationitems
Due dateitems
Valuation totals
Remuneration totals
Due date totals
Commission contract
Pos
ting
mon
thRem
unera
tion t
ype
Drilldown report
ReportAccount
statement
Account: Display and Evaluation
You can use the menu path Comn account -> Line items/Totals -> Remuneration and liability/Due dates/Valuation to include six reports that access the relevant tables (for example, <application>_DOCRE) and evaluate them.
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© SAP AG FS320 16-12
SAP AG 2004
Research: Customer-Specific Totals Tables
In addition to the tables that are already available, the customer can create any number of totals table in the commission system.
Maintenance of these tables takes place in the generator:
Differentiation characteristics are in the key areaNumerical attributes to be summarized are in the data area
The generation process creates the appropriate update methods automatically.
It is possible to create a report for each totals table.
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© SAP AG FS320 16-13
SAP AG 2004
Scenario 4 [Reporting]
Commission Commission AccountAccount
WebWeb--Access [Access [Comm.receipiantComm.receipiant]]
Rep
ortin
g
SAP Business SAP Business WarehouseWarehouse
......
Management Report‘s Management Report‘s
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© SAP AG FS320 16-14
SAP AG 2004
Web-Access
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© SAP AG FS320 16-15
SAP AG 2004
Web-Access
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© SAP AG FS320 16-16
SAP AG 2004
Web-Access
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© SAP AG FS320 16-17
SAP AG 2004
Scenario 4 [Reporting]
Commission Commission AccountAccount
WebWeb--Access [Access [Comm.receipiantComm.receipiant]]
Rep
ortin
g
SAP Business SAP Business WarehouseWarehouse
......
Management Report‘s Management Report‘s
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© SAP AG FS320 16-18
SAP AG 2004
Valuation totals
Remuneration totals
Due date totals
Product
Pos
ting
mon
thReg
ion
Drilldown report
ReportStatistics
i.e.
Region
Agents
others
Statistic
You can use the menu path Comn account -> Line items/Totals -> Remuneration and liability/Due dates/Valuation to include six reports that access the relevant tables (for example, <application>_DOCRE) and evaluate them.
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© SAP AG FS320 16-19
SAP AG 2004
Scenario 4 [Reporting]
Commission Commission AccountAccount
WebWeb--Access [Access [Comm.receipiantComm.receipiant]]
Rep
ortin
g
SAP Business SAP Business WarehouseWarehouse
......
Management Report‘s Management Report‘s
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© SAP AG FS320 16-20
SAP AG 2004
mySAP Insurance
mySAP Technology
Business Partner
Business Information Warehouse and Strategic Enterprise Management
Insurance Core Systems Business Support
Col
lec
tio n
sa n
d D
isbu
rse m
entsPolicy
ManagementP
rodu
ct
mySAPmySAP Insurance Insurance
General Ledger
Controlling
SRM
Human Resources
Claims Management
Commissions
Reinsurance
Financial Asset Management
LIFE
P&C
HEALTH
LIFE
P&C
HEALTH
...
CommissionsCustomerService
Claimshandling
Acquisitionand sales
MarketingManagment
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© SAP AG FS320 16-21
SAP AG 2004
SAP Business Content – What Is It?
CustCust..--specificspecific
We differentiate between the following categories in SAP Business Content: General General
Business ContentBusiness Content
IndustryIndustry--specificspecific
Info
Env
ironm
ent
InfoCubes, ODSInfoCubes, ODSExtractors, InfoSourcesExtractors, InfoSources
QueriesQueries
Info ObjectsInfo Objects
WorkbooksWorkbooksRolesRoles
Stan
dard
In
divi
dual
Stan
dard
In
divi
dual Preconfigured collection of
objects
Info environment structured according to business queries
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© SAP AG FS320 16-22
SAP AG 2004
SAP Business Content – Components
SAP BW
Infosources
Tech. Processes
Info Objects
Data Objects
Analyses
Delivery SystemsSemant., Tech. Properties
Extractors
Data Sources
ReportingReportsRolesWorkbooksWebCockpits
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© SAP AG FS320 16-23
SAP AG 2004
Describe Reporting Possibilities for FS-CS
You are now able to:
Unit Summary
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© SAP AG FS320 17-1
Exercise MasterData_Commission_Contract_for_Agent
Table of Contents
Exercise MasterData Commission Contract for Agent...................................................1
System Access Information .....................................................................................................1
Step 1: Build up an organizationt ...................................................................................2
System Access Information
System Landscape
System Landscape, this Process is built in
SAP for Insurance
Solution Components used in this Process
mySAP R/3 Functionality
FS-CS Commissions Management
IS-INS Miscellaneous
Users
Predefined User (Role) Initial Password Component
FSxx init R/3
Start-Menu
Choose the following start-menu: SAP Easy Access Insurance Commission
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© SAP AG FS320 17-2
Step 1: Build up an organization Recently you created a Business Partner in FSCS. You also made this BP available in the CD system by going to the CD menu and creating it.
You’ll be creating some basic CD master data which we’ll use later. You will also be creating the commission contract for your business partner.
Procedure 1. You are now going to create a brand new organization.
2. Choose Human Resources Organizational Management Organizational Plan General Structures Create
Please note under the path (Commissions Master Data Organization Plan Structures: General) you could call the amendment modus. 3. Enter the following data:
Field Data
Object Type <o> (Organization Unit)
Abbreviation Your choice
(e.g. H.O & your group #)
Name Your choice
(e.g. Insurance & your group # or your name)
Evaluation Path CACS_GP
Valid from 01.01.2005
Valid from 31.12.9999
4. Choose (<Create>).
5. Place your coursor at the first Organization Level, which you have created under step 3.
6. Now choose at the menu edit create object
7. Choose <is line supervisor of> (Organizational Unit)
8. Now make the following entries:
Abbr. Name
Agency 1 Name of the Agency (e.g. Agency Walldorf)
Agency 2 Name of the Agency (e.g. Agency Mannheim)
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© SAP AG FS320 17-3
9. Now save your entries with the Save button (diskette icon).
10. Place your coursor at the first Agency, which you have created under step 8.
11. Now choose at the menu edit create object
12. Choose <incorporates> (Positions) Remark: for AGENTS
13. Now make the following entries:
Abbr. Name
Agent 1 Agent 1
Agent 2 Agent 2
14. Now save your entries with the Save button (diskette icon).
15. Place your coursor at the first Agency, which you have created under step 8.
16. Now choose at the menu edit create object
17. Choose <is managed by> (Positions) Remark: for Manager
18. Now make the following entries:
Abbr. Name
Manager Manager of Agency ….
19. Now save your entries with the Save button (diskette icon).
20. Place your coursor at the first Organization Unit, which you have created under step 3.
21. Now choose at the menu edit create object
22. Choose <has administrator> (Positions) Remark: for Commission Clerks
23. Now make the following entries:
Abbr. Name
Clerk Clerk
24. Now save your entries with the Save button (diskette icon).
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© SAP AG FS320 18-1
Exercise MasterData BP for CLERK Table of Contents
Exercise MasterData BP for Agent .............................................................................................1 System Access Information ..................................................................................................................1
Step 1: Creating a business partner in the system in the role <commission contract partner> .2
Step 2: Assign the commission clerk to the organization ...........................................................3
System Access Information System Landscape
System Landscape, this Process is built in
SAP for Insurance
Solution Components used in this Process
mySAP R/3 Functionality
FS-CS Commissions Management
IS-INS Miscellaneous
Users
Predefined User (Role) Initial Password Component
FSxx (xx = your assigned group #
“init” You’ll be asked to create a new password – use “FSxx”
R/3
Start-Menu
Choose the following start-menu: SAP-Menu Insurance Commission System Start Menu
Choose commission application <ZFSCS> [FSCS Training System]
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© SAP AG FS320 18-2
Step 1: Creating a business partner in the system in the role <commission contract partner> Procedure ...
1. To start, choose at the FSCS Menu Administration System Administration Clerk Create
2. Choose <Person> and press (<Enter>).
3. Enter the following data:
Field Data
Title <Mr.>
First Name <your first name>
Last Name <your last name>
Search Term1 <Clerk>
Search Term2 <Last name of your clerk>
Street <Neurottstr. >
House No. <2>
Postal Code <69190>
City <Walldorf>
Country <DE>
You currently do not need to enter any other data.
4. Choose folder <Control > (note the tabs, you’ll have to scroll right).
5. Enter the following data:
Field Data
BP Type <0003> (employee)
6. Choose folder <Identification >.
7 Enter the following data:
Field Data
USER <your USER ID> of your login to the training system
8. Now save your commission contract partner using the save button (diskette icon).
9. Make a note of the number of the business partner that you have just created. This number is visible at the bottom of the screen. No.: ___________________________
10. Choose the button.
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© SAP AG FS320 18-3
Step 2: Assign your commission clerk to your organization
Procedure
...
1. Choose at the Commissions Master Data Organizational Plan Structures: General
2. Enter the following data at the bank details:
Field Data
Object type <O>
Object ID Chose with the F4-Help the organization, which you have created or which you want to use.
Evaluation Path CACS_GP
E.Period from <today>
E.Period until 31.12.9999
3. Please confirm this message press the (<Enter>) button.
4. Place your coursor at the position <has administrator>
5. Now choose at the menu edit create relationship
6. Choose <holder> (Business Partner) .
7. Press the (<Enter>) button.
8. Enter the following data at the bank details:
Field Data
Business Partner The business partner number of your commission clerk
9. Mark the the entry which the system now displays.
10. Press the (<Enter>) button.
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© SAP AG FS320 18-4
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© SAP AG FS320 19-1
Exercise MasterData BP for Agent Table of Contents
Exercise MasterData BP for Agent.................................................................................1
System Access Information .....................................................................................................1
Step 1: Creating a business partner in the system in the role <commission contract partner>.................................................................................................................................................2
Step 2: Creating a business partner in the system in the role <Contract Partner> (for FSCD).................................................................................................................................................3
System Access Information System Landscape
System Landscape, this Process is built in
SAP for Insurance
Solution Components used in this Process
mySAP R/3 Functionality
FS-CS Commissions Management
IS-INS Miscellaneous
Users
Predefined User (Role) Initial Password Component
FSxx (xx = your assigned group #
“init” You’ll be asked to create a new password – use “FSxx”
R/3
Start-Menu
Choose the following start-menu: SAP-Menu Insurance Commission System Start Menu
Choose commission application <ZFSCS> [FSCS Training System]
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© SAP AG FS320 19-2
Step 1: Creating a business partner in the system in the role <commission contract partner> Procedure 1. To start, choose at the FSCS Menu Master Data Commission Contract Partner Create
2. Choose <Person> and press (<Enter>).
3. Enter the following data: Field Data
Title <Mr.>
First Name <according to your choice>
Last Name <according to your choice>
Search Term1 <Agent>
Search Term2 <Last name of your agent>
Street <Neurottstr. >
House No. <2>
Postal Code <69190>
City <Walldorf>
Country <DE>
You currently do not need to enter any other data.
4. Choose folder <Control > (note the tabs, you’ll have to scroll right).
5. Enter the following data: Field Data
BP Type <0005> (full time agent)
6. Now save your commission contract partner using the save button (diskette icon).
7. The system informs you that the business partner type has been changed. Please confirm this message press the (<Enter>) button.
8. Make a note of the number of the business partner that you have just created. This number is visible at the bottom of the screen. No.: ___________________________
9. Choose the button.
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© SAP AG FS320 19-3
Step 2: Creating a business partner in the system in the role <Contract Partner>
Procedure
1. Choose at the SAP Easy Access Menu Insurance Collection/Disbursement Master Data Change
2. Your recently entered Business Partner may already have defaulted. Note the role.
3. he address data and other information should have defaulted in too.
4. If you can’t find your Business Partner contact your instructor
5. If you found your Business Partner continue to next steps
6. Choose folder <payment transactions>.
7. Enter the following data at the bank details: Field Data
ID <0001>
Ctry <DE>
Bank Key <10020030>
Bank account <4711>
8. Now save your commission contract partner using the save button (diskette icon).
9. The system informs you that the business partner type has been changed. Please confirm this message press the (<Enter>) button.
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© SAP AG FS320 20-1
Exercise MasterData_Commission_Contract_for_Agent Table of Contents
Exercise MasterData Commission Contract for Agent...................................................1
System Access Information .....................................................................................................1
Step 1: Creating a CD Contract Account........................................................................2
Step 2: Creating a CD Insurance Object.........................................................................3
Step 3: Creating a commission contract for a new agent...............................................4
System Access Information System Landscape
System Landscape, this Process is built in
SAP for Insurance
Solution Components used in this Process
mySAP R/3 Functionality
FS-CS Commissions Management
IS-INS Miscellaneous
Users
Predefined User (Role) Initial Password Component
FSxx init R/3
Start-Menu
Choose the following start-menu: SAP Easy Access Insurance Collection/Disbursement
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© SAP AG FS320 20-2
Step 1: Creating a CD Contract Account Recently you created a Business Partner in FSCS. You also made this BP available in the CD system by going to the CD menu and creating it.
You’ll be creating some basic CD master data which we’ll use later. You will also be creating the commission contract for your business partner.
Procedure 1. You are now going to create a FSCD contract account for the new agent.
2. Choose Master Data Contract Account Create.
3. Enter the following data: Field Data
Business Partner <?> (Your business partner number)
Cont. Acct. Cat. <07> (Commission Account)
Valid from <today>
REF.ACCOUNT
Field Data
Contract Acct. <300146288>
Business Partner <1121>
4. Choose (<Enter>).The system then displays the General Data entry screen.
5. You have just copied a previously created contract account’s (7000200) attributes.
6. Now save your contract account with the Save button (diskette icon).
7. Make a note of the contact account number, which is displayed at the bottom of the screen. No.: ___________________________
8. Choose (<Enter>) to get to return to the Work Center for Commission Administrator.
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© SAP AG FS320 20-3
Step 2: Creating a CD Insurance Object 1. You are now going to create a FSCD insurance object for the new agent.
2. Choose Master Data Insurance Object Create
3. Enter the following data on the initial screen: Field Data
Insurance Object <IO-…> (Number of your business partner)
Valid from <today>
Object Category <30> (Commission Contract>
Partner <?> (Number of your business partner)
4. Choose (<Enter>) to get to the entry screen.
5. After pressing enter you should see the partner information display in the box to the right.
6. Enter the following data: Field Data
Description <Insurance Object for XX> (XX = No. of your business partner)
7. Enter the following data on the Coll./Disb. Tab page: Field Data
Contract acct. <yy> (yy data from step "creating a contract account")
Parameters for commission contract are active
<X>
8. Choose the Save button (diskette icon) to save your entries.
9. Choose (<Enter>) to get to return to the SAP Easy Access Menu.
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© SAP AG FS320 20-4
Step 3: Creating a commission contract for a new agent In the previous exercises you’ve created the following:
FSCS
o Business Partner
FSCD
o Business Partner
o Contract Account
o Insurance Object
You have created the basic master data needed for FSCS to settle to FSCD.
You’ll now focus on creating the contract in FSCS.
Procedure 1. Starting from the SAP Easy Access Menue choose now Insurance -> Commission System
Start Menu.
2. Choose Master Data Contract Create
3. Enter the following data: Field Data
Contract Number Leave blank
Number Assignment <01>
Comm. Contract Partner <your BP no. – see the above scenario section>
Effective From <today>
Effective until <31.12.9999>
Std. Contract No. <101> (agent contract)
4. Choose (<Enter>).
5. The system displays the General Information tab page. An information message appears saying “No link between commission contract ### and PD Org. This means that no assignment has been made to the organizational structure.
6. Press the <StfAssignment > button the to link the commission contract to the organization channel
7. Enter the following data: Field Data
Staff Assignt s
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© SAP AG FS320 20-5
Staff Assgt Choose a position of your organization
8. Choose (<Enter>) to confirm your entries.
9. Now choose the Performance-Rel.Rem. tab page.
10. Enter the following data: Field Data
Std. Agreement No. <1001>
Remark: Do not choose (<Enter>) as this takes you automatically to the next tab page,
meaning that you have to come back.
11. Select the radio button for standard agreement no. 1001.The system now displays all the condition tables that are important for standard agreement 1001.
12. Now choose the Flat-Rate Remuneration tab page.
13. Enter the following data: Field Data
Flat Remn. Rule No. <1>
Flat Rate From <today>
Flat Rate Until <two years later>
Amount <200>
Remuneration <PAU> (office costs)
14. Now choose the Settlement/Disbursement tab page.
15. If you want to settle SAP CD enter the following data: Field Data
Ind. Statement Rule <1>
Set Type <EXCD>
Payee Acc. Paym. Sys. <IO No.> Insurance Object No. see your above exercise (IO-
BP#)
16. Now choose the Guarantee tab page.
17. Enter the following data: Field Data
Guarantee Rule No. <1>
Guarantee Begin <today>
Guarantee End <two years later>
Guarantee Amount <3000>
Remuneration <GAP> (Guarantee for personal insurance)
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© SAP AG FS320 20-6
18. Now press the button to Save Commission Contract Actively
19. Save the contract with the Save button (diskette icon).
20. Make a note of the contact number, which will be displayed at the bottom of the screen. No.: ___________________________
21. Choose the <Back> button...
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© SAP AG FS320 21-1
Exercise Transaction Data Commissionable Event Table of Contents
Exercise Transaction Data Commissionable Event ........................................................1
System Access Information .....................................................................................................1
Step: A life insurance contract is brokered/sold .............................................................2
System Access Information System Landscape
System Landscape, this Process is built in
SAP for Insurance
Solution Components used in this Process
mySAP R/3 Functionality
FS-CS Commissions Management
IS-INS Miscellaneous
Users
Predefined User (Role) Initial Password Component
FSxx init R/3
Start-Menu
Choose the following start-menu: SAP-Menu Insurance Commission System Start Menu
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© SAP AG FS320 21-2
Step 1: A life insurance contract is brokered/sold The agent, agent contract and agent contract functions (settlement to CD, flat rate, guarantee, and product percentage) have been created and defined. You have also specified payments to be “settled” to FSCD (the settlement agreement on the contract).
In this exercise, you will simulate data coming from the Business Package into the commission system. The commission engine will calculate the Agent commission based on the newly created product (60/60) percentages.
Procedure ...
1. Choose Case Create
2. Enter the following data: Field Data
Object Type <1> (Insurance Contract)
Object Trigger <1> (Create)
3. Choose (<Enter>) to confirm your entries.
4. The system then displays the Header tab page.
5. Choose (<Variant> ) and press (<FIND>)
6. Override the <User Name> with <ZFSCS>.
7. Choose (<Enter>) to confirm your entries.
8. and select the variant <New Business>.
9. Choose (<Enter>) to confirm your entries.
10. Enter the following data: Field Data
Processing Target <9>
Business Obj. ID REPLACE “Place Policy # here” with a <policy number of your choice> Make a note of this policy number: __________.
11. Choose the participation folder [Investment] and REPLACE Contract “2” with the contract no. you created in the commission contract exercise [see step before].
12. You can now simulate the calculation by choosing the simulation button (slide rule icon).
13. Now you can display the calculated values on the Document tab page. The detailed processing steps are on the Log tab page.
14. If the simulation ran successfully go to the next step. If not, notify the instructor. (You know the simulation ran successfully it the Log displays green lights and the Document tab displays amounts for your contract)
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© SAP AG FS320 21-3
15. Choose the Save button . Make not of the commission case number, which will be displayed at the bottom of the screen.
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© SAP AG FS320 22-1
Exercise Transaction Data Flat Rates and Guarantees
Exercise Transaction Data Flat Rates and Guarantees ...................................................1
System Access Information .....................................................................................................1
Step 1: Calculating flat rates...........................................................................................2
Step 2: Calculating guarantee payments.........................................................................2
System Access Information System Landscape System Landscape, this Process is built in
SAP for Insurance
Solution Components used in this Process
mySAP R/3 Functionality
FS-CS Commissions Management
IS-INS Miscellaneous
Users Predefined User (Role) Initial Password Component
FSxx init R/3
Start-Menu
Choose the following start-menu: SAP-Menu Insurance Commission System Start Menu
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© SAP AG FS320 22-2
Step 1: Calculating flat rates At the end of each month, any due payments from contractually agreed flat-rates are determined for all agents. There might be, for example, IT flat-rates for office cost allowances.
Procedure 1. Choose Administraton Periodic Processing Closing Flat Rates, Guarantees
2. Enter the following data:
Field Data
Contract Number <contract no. of your agent> (From the previous exercise)
Remuneration Type <PAU> (office costs subsidy)
Key Date <month’s end>
Mode: Test Run <X>
3. Choose the Execute button (F8).
4. Does the amount you earlier defined for Flat rate look familiar? If not go back to the Commission Management menu and view your Agent’s contract and Flat Rate Agreement. If the amount looks familiar continue to the next step.
5. If there are no errors, remove the flag from the Test Run field.
6. Choose the Execute button (F8).
7. Choose Exit (yellow arrow icon) to go to the entry screen for the closing run.
8. Choose (<Enter>) to get back to the Commission Management menu.
Step 2: Calculating guarantee payments
Procedure 1. Choose Administraton Periodic Processing Closing Flat Rates, Guarantees
2. Enter the following data:
Field Data
Contract Number <contract no. of your agent> (From exercise no. 2)
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© SAP AG FS320 22-3
Remuneration Type <GAP> (Guarantee)
Key Date <month’s end>
Mode: Test Run <X>
3. Choose the Execute button (F8).
4. If there are no errors, remove the flag from the Test Run field.
5. Choose the Execute button (F8).
6. Choose Exit (yellow arrow icon) to go to the entry screen for the closing run.
7. Choose (<Enter>) to get back to the Commission Management menu.
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© SAP AG FS320 22-4
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© SAP AG FS320 23-1
Exercise Transaction Data Settlement Run
Table of Contents
Exercise Transaction Data Settlement Run ....................................................................1
System Access Information .....................................................................................................1
Step 1: Settlement Run to FS-CD...................................................................................2
Step 2: Check FS-CD account balance ...........................................................................3
System Access Information
System Landscape
System Landscape, this Process is built in
SAP for Insurance
Solution Components used in this Process
mySAP R/3 Functionality
FS-CS Commissions Management
IS-INS Miscellaneous
Users
Predefined User (Role) Initial Password Component
FSxx init R/3
Start-Menu
Choose the following start-menu: SAP-Menu Insurance Commission System Start Menu
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© SAP AG FS320 23-2
Step 1: Settlement Run to FS-CD At the end of each period the amounts due will be transferred to the disbursement system FS-CD.
Prior to this exercise you may want to review the Agent’s balance in FS-CD (see Step 2) before the settlement occurs. You should receive the message “No items selected” if there is a zero balance.
Procedure 1. Choose Administration Periodical Processing Settlement 2. Choose FSCS Periodical Tasks Settlement run
3. Enter the following data:
Field Data
Contract Number <contract no. of your agent> (From exercise no. 2)
Settlement Type <1CD>
Key Date <today + 1day>
Mode: Test Run <X>
4. Choose the Execute button (F8).
5. If there are no errors, remove the flag from the Test Run field.
6. Choose the Execute button (F8).
7. Choose Exit (yellow arrow icon) to go to the entry screen for the settlement run.
8. Choose (<Enter>) to get back to the Commission Management menu.
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© SAP AG FS320 23-3
Step 2: Check FS-CD account balance
Procedure
1. Choose Exit (yellow arrow icon) to get back to the SAP Easy Access menu.
2. Choose Insurance Colletion/Disbursement Account Account Balance
3. Enter the following data:
Field Data
Business Partner <BP No. of your agent>
Contract account <contract account no.> see exercise 2 step 1.
List Type <all open and cleared items>
4. Choose (<Enter>).
5. You could choose four times to get more and more to the details of the account balance report.
6. Choose twice Exit (yellow arrow icon) to get back to the SAP Easy Access menu.
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© SAP AG FS320 23-4