Payment Distribution and
Monitoring 
Purpose
The process enables plans to be handled according to the conditions of the American Internal Revenue Service (IRS) in such a general way that similar products in other countries can also be dealt with. A plan exists in addition to the master contract from a plan clearing account, and any number of participant contracts. Beneficiaries can be saved on the plan. Payments are made only via the plan clearing account and are distributed to the other participant contracts. This applies to deposits (called “contributions”) and for disbursements. You can define rules and checks for the contributions and disbursements in Customizing. Data is transferred for tax reporting to the tax module.
Prerequisites
Required Components
To be able to use this process, you need to install the following components:
· Master Contract Management (FS-MCM) with the functions Master Contract, andPayment Distribution and Monitoring.
· Account Management (FS-AM) with the functions Product, Account, Payment Item, Payment Order, Standing Order, Account Closure.
· Business Partner for Financial Services (FS-BP)
· Capital Yield Tax (CYT) as a module for the calculation of all incurred taxes.
· Correspondence
·
Parallel Processing of
Mass Data
For notes about the options of using external systems, see the SAP Library under Connection of External Systems.
A graphic displays the relationships of the objects and processes.
Settings in the Customizing of Account Management (FS-AM)
To manage the plan clearing account and the participant accounts of the plan in the system and to execute the payments, you need to enter the following additional settings:
· To be able to use the function Payment Distribution and Monitoring in the plan via the plan clearing account, you have activated the check object Plan Monitoring for these transaction types under Item Management ® Basic Functions ® Transaction Types and Transaction Type Groups ® Maintain and Assign Transaction Types for Payment Items. You have selected the indicator Standing Order Additional Data for transaction types that you want to use for recurring payments.
· To control the continued processing of the payment item, if at least one of the checks is successful in the check object Plan Monitoring, you have entered the relevant settings under Item Management ® Posting Control Rules.
· You have used the BAdIs Data Transfer From Standing Order to Payment Order and Data Transfer to Payment Item to ensure that the settings match the settings in the BAdIs Connection of Standing Order for Recurring Payment and Connection of Payment Order for One-Time Payment.
Settings in the Customizing of Master Contract Management (FS-MCM)
To manage the plan as a master contract with the feature Payment Distribution and Monitoring in Master Contract Management and to execute payments via the plan and between plans, you need to enter the settings listed below as well as the basic and general settings for Master Contract Management:
· You have entered a minimum of the following settings under Master Contract ® PDM Plan:
¡ Define Plan Types
¡ Define Contribution Types
¡ Assign a Plan Type with Contribution Types
¡ Define Disbursement Types
¡ Assign a Plan Type with Contribution Types
All checks and calculations are controlled via the plan type, contribution type, and disbursement type.
If you need a life expectancy table for calculations, you also need to define this yourself.
· You have created a product with the features Payment Distribution and Monitoring and Plan Statement under Product Management ® Product Definition ® Master Contract Products ® Create or Change Master Contract Product.
When you do this you assign a plan type, contribution/disbursement types, and a product category to the plan clearing account. Under contract relationships, you can, for example, restrict the product, currency, and number of participant accounts.
· You have checked all the settings under Payment Distribution and Monitoring. You may need to enter the following settings since SAP does not deliver any standard settings for these:
¡ All relevant settings under Monitoring Rules.
Specify the values that are to apply for the contributions and disbursements according to legal or other requirements, or your own requirements.
¡ All relevant settings under Check Methods.
Assign the plan types with check methods for contributions and disbursements. You can assign check methods provided by SAP, or your own. You need to assign a check result for your own check methods, so that after the payment item check, the results of the check object Plan Monitoring can continue to be processed correctly, for example, by the Posting Control Office.
¡ All relevant settings under Amount Calculation.
Specify time periods and define the required calculation types. The system differentiates between different calculation categories. You can assign the check and calculation methods provided by SAP, or assign your own.
¡ In special cases, you need to assign defined life expectancy tables by choosing Master Contract ® PDM Plan.
¡ All relevant settings under Recurring Payments.
Define types of recurring payment and assign these to the calculation types that you defined before. The system differentiates between two categories of recurring payment. For more information, see the SAP Library under Recurring Payment
¡ Specify category of tax calculation module.
Process Flow
Creating Plans
...
1. Create a master contract. Choose a product for which the feature attributes Payment Distribution and Monitoring and Plan Statements are activated. For more information, see Master Contract.
2. Choose the Contract Relationships tab page, and assign the participant contracts. The plan clearing account is added by the system according to the settings in Customizing. For more information, see Editing Contract Relationships for Payment Distribution and Monitoring.
3. Check the details on the Plan Data tab page. For more information, see Editing Plan Data.
4. Check the details on the Bank Statement tab page. For more information, see Plan Statements.
5. To transfer the plan to one or more alternative persons or organizations (for example, should the plan holder become deceased), enter these persons or organizations on the Beneficiaries tab page with the beneficiary level. For more information, see Editing Beneficiaries.
Depositing and Distributing Contributions
You create a one-time payment for contributions. You can also create a recurring payment if the settings correspond.
In this case, use a transaction type for a credit memo (credit posting) on the recipient side.
Specify the plan clearing account with a plan clearing agreement on the recipient side.
For more information, see One-Time Payments or Recurring Payments.
The system checks the contribution according to the check methods set up and generates a plan payment detail, then distributes the contribution according to the plan payment agreement.
Changing, Reversing, and Returning Contributions
The system records the information for a contribution in a plan payment detail. You can use the function Displaying and Editing Plan Payment Details to execute this process. This link provides you with the necessary information.
Disbursements from the Plan
You create a recurring payment for disbursements. You can also create a one-time payment if the settings correspond.
In this case, choose a transaction type for a debit memo (debit posting) on the ordering party side.
Specify the data of the plan clearing account with a plan payment agreement on the ordering party side.
For more information, see Recurring Payments or One-Time Payments.
Plan-to-Plan Transfer
Create a one-time payment for the plan-to-plan transfer. In this case, you enter the data of the plan clearing account of the plan to be transferred on the ordering party side, and the data of the plan to be taken on on the recipient side. You need to enter a plan payment agreement for both sides in this case. For more information, see One-Time Payments.
Calculating Plan Key Figures
You schedule the key figure calculation in end-of-day processing. For more information, see Plan Key Figures and the system documentation for the report. The key figures are saved on the plan.
Creating Plan Statements
You create plan statement at the specified times. For more information, see Plan Statements.