Process documentationCredit Card with Settlement via Employee's Bank Account / Split Payment

 

You use this process variant if your employees use a personal corporate credit card for which they receive the bill themselves. The company reimburses the approved expenses directly to the credit card company. Employees pay only the remaining private expenses directly to the credit card company by check. This variant is only offered by credit card companies in the United States.

Prerequisites

To be able to use this credit card clearing process variant, the general prerequisites described in Credit Card Clearing must be met, as well as the following special requirements:

HR Master Data

  • You have to enter the credit card number of the personal corporate credit card with personal liability in infotype 0105 (Communication), subtype 0011 (Credit Card Number). The validity period for the infotype should be the same as the validity period for the credit card.

    SAP Easy Access: Start of the navigation path Travel Management Next navigation step Person-Related Master Data Next navigation step PRMD - Maintain End of the navigation path

  • You also need to communicate the personnel number to the credit card company and agree on a procedure for any future ongoing modifications.

Customizing for Travel Management

  • Define a service provider for each credit card company.

    Customizing activity: Start of the navigation path Travel Expenses Next navigation step Master Data Next navigation step Control Parameters for Travel Expenses Next navigation step Control Parameters from Trip Data Next navigation step Define Service Provider End of the navigation path

  • In Customizing, you must have defined the expense types for individual receipts that are flagged as Reimburse to Employee and that are assigned to the transaction keys of your credit card company.

    For each entry, you also need to enter the relevant service provider for the credit card company as a default value. This ensures that when receipts with this information are transferred to FI, they are posted to the correct vendor accounts for the respective credit card company, and not as credit items in the employee's account. Payment of the approved expenses is then made directly to the credit card company.

    Customizing activity: Start of the navigation path Travel Expenses Next navigation step Master Data Next navigation step Credit Card Clearing Next navigation step Define Assignment Table for Credit Card Data End of the navigation path

  • To ensure that receipts with service provider information are posted correctly, you need to use a special wage type for account determination, which you assign to the combination of expense type and service provider.

    Customizing activity: Start of the navigation path Travel Management Next navigation step Integration of Travel Management with Payroll Next navigation step Wage Types Next navigation step Assign Wage Types to Travel Expense Types for Individual Receipts End of the navigation path

  • You must note that expense reports are posted to Financial Accounting with credit card information for the relevant wage type. This ensures that the system forwards the data (such as credit card number and transaction number) to Financial Accounting, where it is used for payments to the vendor account of the credit card company. The Post with Credit Card Data indicator (T706K) results in the system creating a credit memo line containing the additional information (transaction and credit card number) for each credit card receipt. Note that the automatic payment program F110 transfers this additional information to the credit card company.

    Customizing activity: Start of the navigation path Travel Management Next navigation step Integration of Travel Management with Payroll Next navigation step Wage Types Next navigation step Define Assignment of Wage Type to Symbolic Account End of the navigation path

    Here, you assign the two-character ID for the service provider to the relevant wage type in the Symbolic account for offsetting entry column and select the With Credit Card Information entry.

Process

  • You provide all your employees with a personal corporate credit card to pay for their work-related expenses. They receive a monthly account statement (serves as an invoice) from the credit card company and have to settle the open items with their own personal funds within a certain period of time. The special feature of this process is that employees can decide separately for each individual credit card receipt whether they want their company to pay the credit card company directly, or whether they prefer to pay themselves. In the latter case, employees receive the reimbursement amount from you and then pay the credit card company bill.

  • For timely expense reports, you import the credit card transactions into SAP Travel Management on a daily (working day) basis. Employees assign the credit card transactions to the relevant expense report, add any additional information required, and deduct any private expenses (such as for the mini-bar). Any additional expenses that the employee did not pay for by credit card need to be added manually by the employee.

  • If employees want to pay the expenses directly to the credit card company, they have to delete the default service provider from the additional information for the credit card receipt. The next steps are then the same as described in the process variant "Credit Card with Settlement via Employee's Bank Account".

  • If employees want the company to pay the work-related expenses directly to the credit card company, the system posts a credit item to the vendor account of the credit card company during the transfer to Financial Accounting.

  • This process also allows you to avoid making advance payments. Invoice verification (comparison) between planned and actual expenses is also not required. By using the With Credit Card Information Customizing setting, you ensure that the information required for assigning the receipts is also transferred when direct payments are made to the credit card company. The automatic payment program then makes the payment to the credit card company and reimburses any remaining expenses to the employee.

The following figure provides an overview of this process.