SAP Expertise Consulting (IS-Utilities): August 2013

Generally this is the process of accounting of Security Deposit collected from customers.

Security Deposit Management:-

Collecting of security deposits required from Business partners.
Tracking of security deposits collected from Business partners.
Refund of the security deposit when it is no longer required.

Type of Security Deposits:-

Cash Security Deposits (Accepted in terms of Cash or Check)
Non-Cash Security Deposits (In terms of Bank Guarantee or Letter of Credits or other available means)

Business Processes involved:-

1. Request of Security Deposits

The request is usually generated when a Business Partner is moved in.
The security deposit requests are at the contract level.
Always creation of the security deposit is a manual process which triggers a security deposit request transaction, for mass creation you can develop a custom program to trigger this transaction.

Base T-Code = FPSEC1

2. Receipt of Security Deposits

There is no financial transaction taking place in case of a Non Cash Security Deposit.
Cash Security Deposit paid by customer to the Company will be shown as a protected credit item in Business Partner account.
Cash Security Deposit once realized can’t be set-off against any other open item in customer ledger, during the account maintenance or payments made (Down Payment Concept).
The security deposit should have to be released from down payments first to set off against any other open item.
Instalment payment plan for security deposits is allowed based on certain criteria & can be customized as per requirements.

Base T-Code (Cash): FP05 / FP25 / FPCJ

(After Receipt status would change to PAID)

Base T-Code (Non-Cash): FPSEC2

(After Realization Status would change to RECEIVED)

3. Enhancement / Revision of Security Deposits:-

Security Deposit can be revised based on
Consumption history
Request for change of plan type
Revision of gas price

4. Interest on Security Deposits:-

Interest on Cash security deposits can be calculated based on Interest Key.
The calculated interest is credited to the Business partner account till the date of release the security deposit (If released).

Base T-Code-1: FPI2

Base T-Code-2: FPINTM2

5. TDS on Interest paid for Cash Security Deposits:-

The net interest amount will be posted to the Business Partner after deduction of Withholding tax amount (TDS).
Withholding tax payment will be happen through Finance module.
TDS certificate will be generated to Business partner from FICA module.

6. Refund / Release of Security Deposit:-

Security deposits are released manually or by system itself, reasons are,
Contract Termination
Final Billing / Invoicing
Name Transfer
Change in business Policy
Change in Plan, etc

Security deposit is now available to set off against open items in customer’s account if any. Otherwise it will remain ‘On Account’ which can be refunded to customer via check.

Base T-Code: FPRL

Basic Configurations:

Posting Areas related to Security Deposits:

0800 Special Settings for Securities
0801 Specifications for Clearing Security deposit
1081 Cash Deposit Interest: Specifications
R200 Collateral transfer specifications for change of address
R201 Reverse collateral transfer specification for change of address
1083 Mass Activity Interest on Cash Security deposit
1086 Assign Transactions to Withholding Tax Code & Interest Key

EVENTS (SAP EXITS) Related to Security Deposits:

716      Correspondence: Print Security Request
717      Correspondence: Create Security Request
726      Correspondence: Print Cash Sec.Dep.Interest
727      Correspondence: Create Cash Sec.Dep.Interest
800      Security Deposit: Determine Transaction
810      Security Deposit: Determine Amount
820      Security Deposit: Master Data Check
830      Security Deposit: Form Printout
840      Security Deposit: Contract Check
860      Security Deposit: Due Date Monitoring
870      Release of Cash Security Deposit: Additional Checks
1778    Mass Activity: Cash Security Deposit Interest Calculation
2005    Cash Sec. Dep. Int: Interest Key Determination

Following are the configurations related to Security Deposits:-

Define General Parameters for Security Deposits

Define security deposit Reasons

Define Non-cash security deposit Category

Define Status for Non-Cash Security Deposit

Define Number Ranges for Security deposit (T-Code: FPSEC0)

Define Reversal Reason for Security Deposit

Maintain Components for Calculating Revised Security deposit

& other configurations as per requirement.

This deals with the “Account Determination ID” that is used to determine the Main Transaction and Sub transaction – relevant account assignment data. It is determined from the master data of the contract account to which the business partner item is posted. It separate the set of GL’s for Receivable and Revenue Income for each type of customers.

* System automatically maps the Account Determination IDs for different types of Business partners.
* System automatically determines the respective GL accounts based on the Business Partner type.

Terms Involved:

Account Determination ID:-

It is a combination of main and sub-transactions in SAP FICA.
The main transaction controls the determination of receivables and payable accounts.
The Sub-transactions controls the determination of revenue accounts.
The determination of receivables accounts which are to be posted depends on the different