1. IBU Public Sector
Public Sector
Collection and Disbursements

2. Course Prerequisites
 SAP Financials
 Relevant Public Sector Experience
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3. Target Group
 Audience:
 Project team leaders and members responsible for the
implementation of SAP’s Public Sector solution
 Consultants
 Presales
 Duration: 5 days
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4. Introduction
 Trainer
 Participants
 Name
 Organisation
 Role in projects
 Objectives
 General
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5. Course Overview
Contents:
 Course Goals
 Course Objectives
 Course Content
 Course Overview Diagram
 Main Business Scenario
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6. Course Goals
This course will prepare you to:
 Understand the scope of public sector-specific processes in
PS Collection and Disbursement
 Gain an understanding of the interaction of PSCD, SAP
CRM and other components in the context of Tax and
Revenue Management
 Describe and configure key processes within the PSCD
product
 Identify the integration points between PSCD and other SAP
ERP accounting modules
 Note: This course does not cover in-depth interface design
to core operational public sector systems
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7. Course Objectives (1 of 2)
At the conclusion of this course, you will
be able to:
 Create, display, and maintain business partners, contract
accounts, contract objects
 Understand the use of the tax & revenue accounting
functionalities and other accounting processes
 Post and clear (manually) open items for obligations
 Perform detailed account balance display
 Trace and view the flow of documents through SAP ERP
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8. Course Objectives (2 of 2)
At the conclusion of this course, you will
be able to:
 Configure key customizing parameters for processing
control
 Create installment plans, payment lots, return lots, and
update the general ledger
 Execute periodic activities and closing operations
 Understand the concept of invoicing in FI-CA
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9. Symbols
These symbols will guide you through the workshop. They
mean:
Terms and Definitions
Business Examples; Business Considerations
Customizing
IMG
Additional Technical Information (most of these
pages are not taught in class)
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10. Agenda
Introduction Returns
Master Data Dunning
Transactions Interests
Documents Installment Plans / Promise to Pay
Specific Posting Processes Security Deposits
Payments and Clarification Correspondence
Payment Run and Transfers Integration Accounting
Clearing Control / Ac. Maint.

11. Business Pains for the Director of Tax &
Revenue
Cannot measure revenue Legacy, custom-built, Redundant systems
agency effectiveness, low disconnected systems for each tax, revenue
revenue per dollar spent for each step in tax and receivable type,
lifecycle multiple sources of
Slow revenue
taxpayer data
reconciliation to
general fund Measurement
Fragmented
Accounting Registration, access for
Account taxpayers
High taxpayer Maintenance
burden
Audits, Collect Tax
Tax Inspection & Information
Detection
Single
revenue and
Undetected tax type
fraud & tax limitations
evasion, low Disputes & Appeals Returns Filing
enforced & Processing
revenues
Limited view of
taxpayer
Payments,
Low collection Filing Compliance
Collections
efficiency, high cost High cost per
of operations, low Low voluntary tax return filed
payment efficiency compliance and
revenues
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12. SAP Increases Revenue Collections and
Compliance
Demonstrate public Standardized solution connecting the tax &
accountability, increased revenue revenue management lifecycle process
per dollar spent
Accelerate revenue
reconciliation to Provide multiple taxpayer
general fund access points
Revenue Accounting,
Performance Support all
Foster Benchmarking Registration, revenue and
“constituent” Account Maintenance receivable types
oriented and Service Support
service Audits, Inspection
& Detection,
Taxpayer Case
Management
Online Forms,
Higher enforced eFiling, Returns
revenues, Processing
increased % of
Collections
receivables Offer “single view of
& Disbursements Filing Compliance taxpayer” across tax
collected
types and tax lifecycle
Lowered cost per
Collect money faster, lowered cost of Improved voluntary return filed
operations, make payments faster tax compliance and
revenues
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13. Disadvantages of Stand-alone Applications
Registration Registration Registration
1 2 n
Calculation
Higher maintenance costs
Calculation Calculation
1 2 n
Less information visible
More inconsistent data
Citizen Account Citizen Account Citizen Account
1 Uncomfortable for constituentsn
2
Less compliance
Collection Collection Collection
1 2 ... n
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14. Advantages of Integrated Solutions
Registration
(ONE for ALL)
 Generic IT-Framework
Calculation  Calculation
Consistent Calculationcitizen/business
view of
1  Verified and reconciled filing data
2 n
 Timely and automated mass processing
 Central information on payment history
Citizen/Business Account
 E-Services: simple for constituents,
low costs for the public
Collections/Delinquencies
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15. SAP Tax & Revenue Management Package
Taxpayer
Online Services SAP ERP SAP CRM
Registration
e-Filing Returns Processing
Financial
e-Payment Receivables & Payables Management
Customer Care
Enterprise Portal
Activities Revenue Accounting
Overview
Collections Management
Account
Information Public Sector Collection & Disbursement
Collaboration Enterprise Extension – Public Sector Audit Case
Bankruptcy
Financials
Case
Controlling Budget
Case/Records Business
Management Rules Engine Workflow Intelligence
Tax Estimation
Documents
SAP NetWeaver Tax Analysis
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16. Public Sector Collection & Disbursement
(PSCD) - Product definition
Tax and Revenue Management
Solution Scenario Grantor Management
Social Services & Social Security
Border Management
Public Sector
Product Component Collection and Disbursement
(PSCD)
Industry Solution – Public Sector
Technical Component Contract Accounting
(IS-PS-CA)
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17. How is PSCD being developed?
Public Sector
Insurance PSCD
FS-CD
FI-CA
PSCD IS-U
Utilities Telco
IS-U RM-CA ...
FI-CA FI-CA
FI
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18. Why “Contract Accounting“ ?
From being a Citizen, Business Owner, Taxpayer....
Contract
Account
... to being a Business Partner.
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19. One Citizen Account – different Contract
Accounts
Citizen
Business
Leisure
Tax
Business
Partner
Property
Tax
PSCD
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20. SAP‘s concept of Mass Data Processing
Ability to Administer Process Mass Records
 Withmany Business Partners
 Processing Millions of Open Items
 i.e. in Performance Test based on 5 M. Business partners:
– Posting run 3,600,000 items per hour
– Correspondence 8,900,000 items per hour
Ergonomic Back-office activities
Integration with Front-office activities
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21. Optimum Performance
Public Sector Collection and Disbursement (PSCD)
achieves optimum performance through the following
technical features:
1. Designed for Mass Data processing e.g. by
Contract Accounting architecture or by
Parallel runs
2. Open Item Management in a Sub ledger with
periodic G/L-Update
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22. Technology: Mass Processes in FI-CA
Indicators of large data volumes:
 Payment run
 Mass calculation of interest
 Dunning notices
 Correspondence print
 Generation of bills
Target: Processing time can only be reduced if processes
are split up
Parallel processing of the dataset
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23. Technology: Splitting-Up Processes
Job 1 End of runtime
Business partner: Not in parallel
From 100,000 to 699,999
Job 1
Parallel runs
Business partner:
From 100,000 to 349,999
Job 1-3
Job 2 end at nearly
the same time
Business partner:
From 350,000 to 401,000
Job 3 Interval separation is
Business partner: supported by the
From 400,001 to 699,999 system
Runtime
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24. Technology: Parallel Processing - Interval
Creation
Interval
Interval_1 size = 3
Interval_3
Interval
number Interval_2 Interval_4
=4
BP_1 BP_9 BP_20 BP_40
BP_4
BP_19 BP_30 BP_35
BP_3 BP_5
BP_21 BP_31
Interval
Size = 4 Interval
Interval_2
Interval_1 number
Interval_3
=3
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25. Technology: Parallel Processing - Portioning
Challenges/Problems
 How is the dataset to be portioned?
The dataset is not distributed evenly:
 Contract account numbers or business partner numbers
are generally more concentrated in some number
intervals than in others.
 Contract accounts have varying numbers of items.
 How many portions are to be assigned to each process?
Each processing run does not contain the same processes or
number of processes:
 Processes on different servers have varying degrees of
"performance".
 Furthermore, performance is dependent on other
processes that are being carried out at the same time.
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26. Technology: Parallel Processing - Realization
Dispatcher for
mass data program
...
Server A Server A Server X
Job 1 Job 2 Job n
Interval Interval Interval Interval Interval Interval Interval
1 4 9 3 6 2 10
m m m ...
OIs OIs OIs
m = Block value
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27. Enhancements I
Enhancement Concept for Industry Solutions and
Customers:
 Posting areas (FQC0)
 Process / event
 Different applications use different application indicators
(for example „P“ = Public Sector, „R“ = IS-U, „V“ = IS-IS/CD...)
 System brings in all relevant tables
(SI_INCLUDE, CI_INCLUDE)
 Master data are built with Business Data Toolset (BDT)
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28. Enhancements II
Example Dunning activity run:
 Framework program (with parallelization, determination of open
items, protocol, reads dunning history....)
 3 events, i.e. user exits (grouping, set dunning locks, check
tolerance days...)
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29. Technology: Event Concept (1)
FI-CA program
(Event) Allows flexibility
without modifying
SAP programs
Customer- Yes
Specific
No
Industry- Yes
specific
No
Standard IS Customer
program program program
FI-CA program
(Continuation)
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30. Technology: Event Concept (2)
SAPxxxxx TFKFBM Standard functionality
Event Text ABAP/4 modules
program.
2000 Interest key determ. FKK_SAMPLE_2000
...
... ... ...
event 2000 TFKFBS Industry... functionality
... ...
...
Event ... Text ... ...
ABAP/4 modules
... ... ...
...
event 0350 0350 Dunning Activities ISU_0350
... ... ... ...
TFKFBC Customer functionality
... ... ...
... Event ... Text ... ...
ABAP/4 modules
event 0260 ... ... ...
... ... ... ...
... ... ...
... 0260 Return charges FCS_0260
... ... ... ...
... ... ...
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31. SAP ERP Central Component (ECC) - SAP ERP
6.0
Industry solutions shipped
in SAP ERP 6.0 are
technically realized:
SAP ERP 6.0
Former

C within the cross-industry Add-On
application’s Core Industry & Enterprise Extensions Former

IE as Industry & Enterprise Add-On
Extensions of SAP ERP to be EE EE EE PSCD IE IE
activated via the SAP Switch Former
Framework Add-On
SAP ECC Core
 Business Function Sets Public Former
Services: Add-On
 BF Contract Accounting Funds SAP Web Application Server
Management Add-On
 BF Collection & Disbursement
 BF Grantor Management
SAP NetWeaver Add-On
 BF Tax & Revenue
Management
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32. SAP ERP 6.0: Industry Extensions
can be activated via the Switch Framework
SAP Switch Framework
Industry Business
Function Sets
SAP Discrete Industries
Mill Products Only ONE
SAP ECC SAP Media  Industry Business
SAP ERP Central SAP Telecommunication Function Set can be
Component 6.00 SAP Oil and Gas
activated via Switch
…..
Generic Business
Function Sets
Financial Services
Global Trade SEVERAL Generic
…..  Business Function
…..  Sets can be
activated via Switch
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33. SAP Enhancement Packages
Enhancement Lean
Package  SAP offers a new method to enhance the SAP Business
EhA EhB
EhA EhB
Suite and ERP solutions
EhA EhB User interface
EhC EhD
EhC EhD
EhC EhD
 Update the SAP enterprise software solutions with
EhE EhF
EhE EhF
EhE EhF
minimal disruption to business and IT operations
Functionality  Industry leading technique to evolve and expand
capabilities of the organization software solutions
Enterprise  “Expand on demand”
services
NetWeaver
foundation
“ In our experience applying the principles of lean manufacturing to
Application Development and Maintenance can increase productivity
by 20 to 40 percent while improving the quality and speed of
execution.”
The McKinsey Quarterly, May 2007
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34. New SAP Release Strategy
NEW RELEASE
STABILITY STRATEGY
 Stable core processes Enhancement Packages
 Legal compliance
 Stable technology platform SAP ERP 6.0
 Sufficient maintenance schedule
 No need for major upgrades
SAP NetWeaver
 Flexibility to implement new
INNOVATION processes and scenarios
 Innovation delivery without
 Adoption of processes when required disruption
 Easy introduction of new processes  Switch framework provides
 New user groups flexibility to chose what
 Modernized user interfaces functionality to use
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35. SAP ERP 6.0 Overview
Quick Facts About SAP ERP 6.0
 Launched in June 2006
Enhancement Packages  Built on SAP NetWeaver 7.0
 More than 3,400 productive systems
(07/2007)
SAP ERP 6.0  Platform upon SAP will deliver future
software innovations
 Software innovation delivered via “SAP
enhancement packages”
SAP NetWeaver
 SAP enhancement package 4 for SAP ERP
went into ramp-up in November 2008
What Are Enhancement Packages?
 Optionally installed and activated software innovations for SAP ERP 6.0
 Software innovations include; UI simplifications, functional
enhancements, industry specific capabilities and enterprise services
 Cumulative in nature; current enhancement packages contain the entire
content of earlier packages
 Enhancement packages are not support packages
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36. SAP Enhancement Packages for SAP ERP
Enhancement Packages
Optional
Enterprise Services
Switch Framework
New/Improved Functionality
Support Packages
Legal/Tax Changes,
Corrections
Man-
datory
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37. A New Approach to Software Upgrades
with SAP ERP 6.0
Comparison of Software Delivery Methodologies
Managing Traditional Managing SAP
Software Upgrades Enhancement Packages
Enhancement
Package
EhA EhB
EhB
EhA EBPP
User interface MES
Integ.
User interface
EhC EhD
EhC HCM
E- EhD
Recruit.
forms
EhEBudget
EhE EhFEhF
Credit
Functionality Executio
Report
n
Functionality
Enterprise
Enterprise
services
services
Application E-Recruitment Application
Platform Platform
 No options, “All or None”  Optional, “Pick and Choose”
 Non-targeted software  Targeted software innovation
innovation  Lightweight – low adjustment
 Heavy - high adjustment effort effort
© SAP 2007 / Page 37

38. Benefits of the Enhancement Concept
Selective Streamlined Test Case
Changes Documentation Templates
 Customers have flexibility  SAP documents details of  SAP publishes test
to activate business functions ERP enhancements by case templates for
that meet business needs business function every business function
 Training and acceptance  All details are available to
testing is isolated to a defined customers in advance:
area of SAP ERP http://service.sap.com/erp-ehp
Benefits for the customer:
Adoption of software -Simplified budget -Less effort needed for test
innovation can be activated estimation and project preparation
on demand planning
-More efficient test
Avoids “big-bang” upgrade
- All
necessary information execution for key users
projects
centrally available along the
Isolates testing effort and project lifecycle
accelerates time to value
© SAP 2007 / Page 38

39. Summary of Enhancement Packages
SAP is changing the game with enhancement
packages:
Innovation without disruption
Sustainability
All Enhancement Packages follow SAP ERP 6.0 maintenance cycle
Pick and Choose
Switch framework provides flexibility to choose what functionality to use
Stability AND Innovation
Predictable projects and isolated testing and adjustment effort
Deploy as you go
All SAP enhancement packages are optional
© SAP 2007 / Page 39

40. Advantages of Contract Accounts Receivable
and Payable
Optimized use of storage space due to a special
type of document structure
Parallel mass runs
SAP Business Partner concept
Documents are assigned to business partners
and contract accounts (and contracts - depending
on the industry)
Summarization of general ledger information
(summary records)
Agent-friendly processing of accounting transactions in
front office and back office
Basis for industry- and customer-specific functions
Integration to other SAP applications (CRM, FSCM, BI, …)
© SAP 2007 / Page 40