Business Case:

Most SAP Business ByDesign customers we work with use credit cards to pay suppliers, and consultants always face the question of how to use the standard functionality in the system to execute this process. As we know, there is no standard functionality in ByDesign for processing credit card payments, but as a solution you can create the credit card company as a bank to process the supplier payments. This works well with a limitation of customers having to manually create credit card statements in SAP ByDesign. This becomes less feasible when the volume of statement lines is high and plus it becomes time consuming as there is a manual input involved.

Limitation/constraint:

From the SAP Business ByDesign system point of view, the statement format for different credit card companies are not the same and also they do not come in the standard ERP systems compatible formats for eg. MT940 or BAI2.

Solution:

A simple cost effective solution I came up with the help of our inhouse developer, Andrea Mussano, was to create a VB based excel template. The template consists of header and transaction details section for users to update. All the fields in the template were mapped to MT940 tags with the help of VB coding and a Generate button in the template to trigger the mapping and create a statement file. You can build the basic logic by using only–NTRF (bank transfer) external code or design it to include more external codes like bank charges, interest, etc.

Conclusion:

Custom development is the only solution at the moment until SAP decides to upgrade ByDesign with native MT940 conversion functionality that will convert any text file into the compatible bank statement format. You can also go for a custom work centre within ByDesign to perform same function as a excel template but considering the efforts involved and technical limitations, the excel solution is simple and way more cost effective!

Process Steps:

1.       Create Credit Card Company as a Bank

2.       Use it in payment runs/ manual payments for making supplier payments

3.       Perform bank to bank transfer ( eg. HSBC to Amex), when you pay the Credit Card Bill from your main bank.

4.       When you receive the credit card statement , update the custom excel template and generate the statement file

5.       Upload the statement file into the credit card bank

6.       Perform bank allocation

7.       End of process.