Payment Distribution and Monitoring

This process enables you to handle plans according to the conditions of the American IRS in such a generalized way, that you can also handle similar products from other countries. A plan consists both of the master contract and a plan clearing account, and any number of participant contracts. You can save beneficiaries in the plan. Payments are made exclusively using the plan clearing account and are then distributed among the other participant contracts. This applies both for incoming payments, know as contributions, and for disbursements. You can store rules and checks for the contributions and disbursements by means of Customizing. For tax returns, data is transferred to the tax module.

Process Combinations

Note Note

You can combine this process with other processes in Master Contract Management. For an overview of all combination options, see Master Contract Management (FS-MCM).

End of the note.

Prerequisites

Required Components

Before you can use this process, you must install the following components:

Master Contract Management (FS-MCM) with the functions Master Contract, Payment 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 module for calculating all incurring taxes.
Print Workbench
Correspondence
Parallel Processing of Mass Data

For notes about the options for using external systems, see SAP Library under Communication Between Logical Systems.

A graphic illustrates the relationships between the objects and processes.

You can only use this process if the master contracts and participating accounts are in the same logical system.

Settings in Customizing for Account Management (FS-AM)

Before you can manage the plan clearing account and the accounts participating in the plan in the system, and make payments, you must also make the following settings:

To use the function Payment Distribution and Monitoring for the plan using 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 Standing Order Additional Data indicator for transaction types you wish to use for recurring payments.
To control the further processing of the payment item if the result of at least one of the checks by the check object Plan Monitoring is positive, you have made the relevant settings under Item Management Posting Control Rules .
Using the BAdIs Data Transfer Standing Order to Payment Order and Data Transfer Payment Order to Payment Item you have ensured that the settings suit the settings in the BAdIs Connection of Standing Order for Recurring Payment and Connection of Payment Order for One-Time Payment.

Settings in Customizing for Master Contract Management (FS-MCM)

Before you can manage the plan as master contract with the Payment Distribution and Monitoring feature in Master Contract Management, and make payment between plans using the plan, you must also make the following settings.

Under Master Contract PDM Plan you have made at least one of the following settings:
- Define Plan Types
- Define Contribution Types
- Assign Contribution Types to a Plan Type
- Define Disbursement Types
- Assign Distribution Types to a Plan Type
The plan type, contribution type, and distribution type control all the checks and calculations.

If you need a life expectancy table for the calculations, you must define this also.
You have chosen Product Management Product Definition Master Contract Products Create Master Contract Product (or Change Master Contract Product) and created a product with the features Payment Distribution and Monitoring and Plan Statement.
When doing so you assign a plan type and contribution and disbursement types and also a product category for the plan clearing account. Under Contract Relationships you can restrict the product, currency, and number of participating accounts, for example.
You have checked all the settings under Payment Distribution and Monitoring. If applicable, you must make all the following settings as SAP does not deliver any standard settings for them.
- All relevant settings under Monitoring Rules.
  Define which values apply for the contributions and disbursements in accordance with legal or other requirements, or your own specifications.
- All relevant settings under Check Methods.
  Assign check methods for contributions and disbursements to the plan types. You can either assign check methods provided by SAP, or your own check methods. For you own check methods you must also assign a check result. This is to ensure that once the payment item has been checked, the results of the check object Plan Monitoring can be properly processed further during subsequent processing, in the Posting Control Office, for example.
- All relevant settings under Amount Calculation.
  Define the time periods and also the required calculation types. The system distinguishes between various calculation categories. You can assign the check and calculation methods provided by SAP, or your own check and calculation methods.
- For special cases you must assign the life expectancy table defined under Master Contract PDM Plan .
- All relevant settings under Recurring Payments.
  Define types of recurring payments and assign the previously defined calculation types to them. The system distinguishes between two categories of recurring payments. For more information, see Recurring Payments.
- Define category of tax calculation module

Process

Create Plan

Create a master contract. When doing so, choose a product for which the feature attributes Payment Distribution and Monitoring and Plan Statement are activated. For more information, see Creating Master Contracts.
Choose the Contract Relationships tab page and assign the participant contracts. The system adds the plan clearing account automatically, in accordance with the settings in Customizing. For more information, see Editing Contract Relationships for the Payment Distribution and Monitoring.
Check the details on the Plan Data tab page. For more information, see Editing Plan Data.
Check the details on the Bank Statement tab page. For more information, see Editing Plan Statement.
If you wish to transfer the plan to one or more other persons or organizations at any time, when the plan holder dies, for example, enter these on the Beneficiaries tab page with details of the extent of the benefit. For more information, see Editing Beneficiaries.

Pay In and Distribute Contributions

Define a one-time payment for contributions. If set accordingly, you can also create a recurring payment.

In this case, use a transaction type for a credit memo (credit posting) on the recipient side.

On the recipient side, specify the plan clearing account with a plan payment agreement.

For more information, see One-Time Payments or Recurring Payments.

The system checks the contribution in accordance with the check methods set, generates plan payment details, and distributes the contribution in accordance with the plan payment agreement.

Change, Reverse, Return Contributions

The system manages the information about a contribution in plan payment details. You can execute this process using the function Displaying and Editing Plan Payment Details. Under this link you can find the necessary information.

Disbursements from the Plan

Create a recurring payment for disbursements. If set accordingly, you can also create a one-time payment.

In this case, use a transaction type for a debit (debit posting) on the ordering party side.

On the ordering party side, enter the data of the plan clearing account with a plan payment agreement.

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, enter the data of the plan clearing account of the plan being transferred on the ordering party side, and the data of the receiving plan on the recipient side. You must enter a plan payment agreement on both sides in this case. For more information, see One-Time Payments.

Calculate Plan Key Figures

You schedule the calculation of the key figures in end-of-day processing. For more information, see Plan Key figures and the system documentation for the report. The key figures are saved in the plan.

Create Plan Statement

You create a plan statement at fixed times. For more information, see Plan Statement.