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Credit card integration in SD

Hi everyone,

Could anyone send me some links, or explain me something regarding credit card integration in SAP SD.

Thanks in advance.

I apprecieate your help

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 31, 2007 at 06:51 AM

    Dear Aditya,

    I have worked extensively on credit card configuration. let me know you email id so that i can send the documents to you.

    In SAP the credit card processing is integrated with the sales and

    distribution module.

    Payment card configuration

    Much of what is required for credit card processing to work with VISA, Master

    Card, and American Express is already set up in SAP.

    For all credit card configurations refer to

    Define Card Types

    Transaction SPRO IMG ‡ Sales and Distribution ‡ Billing ‡ Payment Cards

    Here we define the type of cards that can be used in the system. A four-letter

    code is given for each card type. E.g. MAST for Master Card, VSAJ for Visa

    Japan. A function module for checking the card number is also specified here.

    Credit Card Configuration And Processing In SAP

    Maintain Card Categories

    (a) Define card Categories: Here we specify the card category of the

    payment card. With this the system automatically determines the card

    category when you enter a card number in master data or sales


    (b) Determine card categories: Here we specify the acceptable number

    ranges for different card types. Also card categories are assigned to the

    card types. Even though SAP comes with card checking algorithms

    (Function Modules) for standard card types this configuration setting

    is particularly useful to those cards that do not contain any standard

    checking algorithm already set up in SAP.

    Maintain Payment Card Plan Type

    In this step, you assign the payment plan type for payment cards, the payment

    card plan type, to all sales document types in which you will be using payment

    cards. You cannot process payment cards if you have not made this assignment

    The standard system contains payment plan type 03 for processing payment

    cards. Fig 3. Show the screen where this assignment is done.

    Credit Card Configuration And Processing In SAP

    Maintain Blocking Reasons

    In this step, you define blocking reasons for payment cards. You enter these in

    the payer master record to block cards. The standard system contains blocking

    reason 01 for lost cards.

    Risk Management for Payment Cards

    Transaction SPRO IMG ‡ Sales and Distribution ‡ Billing ‡ Payment Cards

    ‡ Authorization and settlement ‡ Risk Management for payment cards.

    Risk Management plays a central role within Sales, providing you with checks

    and functions to minimize your credit risk. In addition to letters of credit and

    export credit insurance, payment cards are among the payment guarantee forms

    that you can use to insure payment for sales order items. SAP comes with predefined

    payment forms of guarantee as shown below. Customer can also

    maintain other forms of payment suited for their line of business.

    Credit Card Configuration And Processing In SAP

    Define forms of payment guarantee

    Maintain payment guarantee procedures

    In this step, you define Payment guarantee procedure. These procedure controls,

    which form of payment guarantee, are valid for a particular customer, and for a

    particular sales document type.

    The various settings done under this configuration are

    Define payment guarantee procedures

    Maintain customer determination procedure

    Maintain document determination procedure

    Assign sales document types

    Determine payment guarantee procedures

    Maintain authorization requirements*

    Here requirements* are set to tell the system how and when to carry out

    authorization when a sales order is saved. SAP comes with two requirements

    Form routine 1. Carry out authorization only when the sales document is

    complete. The system carries authorization when the order is saved.

    Form routine 2. Carry out authorization only when the sales document is

    complete, but the authorization for all the complete documents is carried out in


    Additional requirements* can be assigned here as per the business requirements.

    *Requirements are ABAP/4 code. Requirements for various functions can be accessed using transaction VOFM

    Credit Card Configuration And Processing In SAP

    Maintain Checking Groups

    How and when authorizations are carried out depends on the setting you make in

    the customizing for maintain checking group routines.

    The three main settings that influence authorization are:

    a) Authorization requirements

    b) Authorization horizon

    c) Preauthorization

    There are two settings under this setting.

    Define checking group: Here a checking group is defined and the

    authorization requirement (described in the previous section), Authorization

    horizon (described below) and preauthorization settings are done for this

    checking group.

    Credit Card Configuration And Processing In SAP

    Here you can see a checking group C1 is defined with the authorization

    requirement 902. Checking the pre-authorization tells the system to carryout preauthorization

    if the order fulfillment date falls outside the horizon. The

    authorization horizon specifies the number of days before the material

    availability date, or billing date, that the system is to initiate authorization. If a

    sales order is saved within the authorization horizon, the system carries out

    authorization immediately. If a sales order is saved before the authorization

    horizon comes into effect, the system does not authorize at all, or carries out


    In this example, the system has been set to authorize one day before delivery

    creation. The system does not carry out authorization when the order is saved on

    Day 0, rather on Day 2. Note that the authorization validity period has been set to

    14 days in Customizing IMG‡ Authorization and settlement‡ Specify

    authorization validity periods. The transaction will have to be reauthorized if

    delivery activities take longer than 14 days.

    Assign checking groups: Here the checking groups defined earlier are

    assigned to different sales document types as shown fig 8.

    Specify authorization validity periods

    Here number of days that an authorization can remain valid for different card

    types are maintained. Refer to Fig 9.

    Credit Card Configuration And Processing In SAP

    Assign checking groups

    Assign validity period for authorization for different card types

    Credit Card Configuration And Processing In SAP

    Account Determination

    Transaction SPRO IMG ‡ Sales and Distribution ‡ Billing ‡ Payment Cards‡

    Authorization and settlement ‡ Maintain Clearing House

    In the following steps, you set the condition technique for determining

    clearinghouse reconciliation accounts for authorization and settlement. The

    system uses the entries here to determine the clearing account for the payment

    card charges. When settlement is run, the postings in the receivable account for

    the payment card will be credited and a consolidated debit will be created and

    posted to the clearinghouse account. These accounts are a special type of general

    ledger account that is posted from Sales and Distribution.

    Here, you maintain:

    • Maintain field catalog.

    • Condition tables and the fields that they contain

    • Access sequences and condition types

    • Account determination procedures

    • You then assign these accounts to condition types.

    Add to field catalog

    Here you maintain the fields that can be used in the condition table. Fig 10.

    Shows the transaction to maintain the field catalog.

    Maintain Field Catalog.

    Maintain condition tables

    Here condition tables are maintained with fields that are added to the field

    catalog. SAP comes pre-configured with two condition tables 4 and 6.

    Credit Card Configuration And Processing In SAP

    Maintain Condition Table

    Maintain access sequences

    In this step we define an access sequence and link the access sequence with the

    condition tables.

    Here an access sequence is defined. SAP comes with the access sequence A001.

    Define Access Sequence

    Once the new access sequence is defined, it is linked to the condition tables as

    shown in the next screen.

    Credit Card Configuration And Processing In SAP

    Maintain Access For Access Sequence

    Selecting an access and clicking fields will display the fields for the selected

    access as shown below for access 10 as shown above.

    Display Access Fields

    Maintain condition types

    Here condition types are defined and the access sequence to linked to it.

    Condition types are contained in account determination procedures and control

    which access sequences the system uses to find condition records.

    These are

    The condition


    Credit Card Configuration And Processing In SAP

    Define condition type

    Maintain account determination procedure

    In this step an account determination procedure is defined and linked to the

    condition type (which in turn is linked to the access sequence).

    Define account determination procedure

    Assign account determination procedure.

    Here an account determination procedure CC01 is defined and the condition type

    CC01 is assigned to it.

    Access sequence linked to the condition type

    Credit Card Configuration And Processing In SAP

    Assign account determination procedures

    In this customizing the previously set up account determination procedure is

    assigned to different billing documents.

    Assign Accounts (G/L)

    G/L accounts are assigned here for the combination of Sales organization, Card

    type, chart of accounts and condition types.

    Assign G/L accounts

    Set authorization / settlement control per account

    Each G/L account is assigned an authorization and a settlement function module.

    The system will read the configuration a call the authorization and settlement

    function module during authorization and settlement respectively.

    Credit Card Configuration And Processing In SAP

    Set Authorization and settlement function module

    Maintain merchant IDs per account

    A merchant may have one or more IDs for each clearinghouse with which it does

    business. Here, you assign these different merchant IDs to their related

    receivables accounts.

    Assign Merchant ID’s

    Credit Card Configuration And Processing In SAP

    Authorization and Settlement in SAP

    Sales Order Cycle With Credit Card


    When an order is placed through the front-end system, the order information,

    credit card information, billing information, shipping information is passed to

    SAP. SAP processes the order calculates the taxes, the shipping costs and reads

    the configuration information settings and executes the function module setup as

    described . The function module formats the data and makes a RFC *

    call to the payment application**.

    The payment application screens the order for fraud, encrypts the data and

    communicates with the third party processor who in turns communicates with

    the card association and card issuer.

    *RFC (Remote Function Call)

    *Payment Application: Middle ware between SAP and third party processor/bank.

    Credit Card Configuration And Processing In SAP

    The third party processor responds back with the response whether the

    transaction is approved or declined or referred.

    Note: When any item in the order does not have a confirmed quantity, then

    authorization is not carried out for the full amount. A small dollar amount

    usually ($1) is used as the authorization amount. During the rescheduling run

    the system will check for the material availability. If the material can be

    delivered within the horizon date, a full authorization for the order is carried


    Approved: When the credit card transaction is approved the systems checks for

    the material availability, confirms the material for the ordered quantity and saves

    the order.

    Declined: The material availability check for the material is not made, and the

    order is rejected.

    Referred: The order is saved and is blocked for delivery. In this situation is

    merchant calls the bank checks for the available credit on the card and a manual

    authorization is carried out.

    Sales Order Entry Screen in SAP

    Payment Card


    Credit Card Configuration And Processing In SAP

    The first line in payment card screen is the card check performed by SAP system,

    using the card check algorithm function module as described in Fig 1. And the

    remaining lines represent the actual authorizations that are carried out.

    Payment Card Screen

    Path Header ‡ Payment Cards.


    Legally the merchant can charge the credit card after the order has been

    completely processed. In SAP this happens after a delivery is created and the

    goods has been shipped. In case there is not enough authorization for the order

    to be delivered, the system goes out the get the authorization for the remaining


    In SAP settlement is initiated using the transaction FCC1. All the valid

    authorization is submitted in a batch to the payment application at scheduled

    intervals as specified by the third party processor.

    The payment application encrypts this data and communicates with the third

    party processor. The third party processor checks if the settlement request has a

    valid authorization against it. The third party processor then transfers the fund

    from the cardholder’s bank to the merchant bank.



    Credit Card Configuration And Processing In SAP

    Credit Card Configuration And Processing In SAP



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  • author's profile photo Former Member
    Former Member
    Posted on Feb 23, 2007 at 01:35 PM


    Credit cards are payment cards used to pay for transactions

    See this link

    Hope this helps


    N Ganesh

    • assign points if useful **

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  • author's profile photo Former Member
    Former Member
    Posted on Feb 24, 2006 at 08:43 AM


    you accept payment from a customer using a credit card, then subsequent

    authorization of the amount by the credit card company guarantees that you will receive payment.

    n Because this process is carried out using a secure payment guarantee form, it does not cause any

    increase in total commitments as defined within credit management.

    n Credit management can now be used as a second stage within risk management, below the secure

    forms of payment guarantee:

    If you have also granted a credit limit to the customer mentioned above and you receive an order that

    is not to be paid by credit card, then this order increases total commitments within credit

    management. In this case there is no guarantee that payment will be made.

    The checks against credit cards, letters of credit and export credit insurance are managed in the same

    way as the individual checks within credit management, in which a status is set that is taken into

    account when determining the overall status.

    n The release/rejection of blocked documents is carried out via the list of blocked sales documents.

    n The updating of insurance balances and letter of credit balances is carried out via information

    structures, as in credit management.

    n A significant difference between letters of credit and payment cards is that if the letter of credit is

    entered in a payment guarantee procedure, then a letter of credit must be assigned in the order,

    otherwise the order will be blocked. If payment cards are entered in the procedure, then the order

    will not be blocked even if no card is entered. This difference is due to the difference between the

    business transactions for which these payment guarantee forms are used.

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    • Former Member


      I have a client who is using Letter of Credit for his suppliers in overseas. Can please tell me the configuration steps for LOC process. I haven't worked on this scenario before. Please let me know how this process could be brought into the system.



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