LeverX Payment Terms Governance

LeverX Payment Terms Governance

Version 1.1 - September 2, 2019

Helping Companies Leverage

Investments in SAP Solutions


Typographic Conventions 3

Typographic Conventions

Type Style Description

Example Words and characters quoted from the screen. These include field

names, screen titles, labels, menu options, and names

Example Emphasized words or expressions

Example Internal and external links

! Example Important notes

4 LeverX Payment Terms Governance

Content

Content

Content ................................................................................................................................................... 4

Overview ................................................................................................................................................ 6

1 Basic Concepts ................................................................................................................................... 7

1.1 System Landscape ................................................................................................................... 7

1.2 SAP HANA Database Tools ..................................................................................................... 8

1.3 Support ..................................................................................................................................... 8

2 Initial Setup ......................................................................................................................................... 9

3 Roles in Payment Terms Governance .......................................................................................... 10

3.1 Strategic Purchaser ............................................................................................................... 10

3.2 Administrator ......................................................................................................................... 10

3.3 Operational Purchaser ......................................................................................................... 11

4 Request Payment Terms ................................................................................................................ 12

4.1 Create, Edit, and Delete Payment Terms ........................................................................... 12

4.2 Filter Payment Terms ............................................................................................................ 16

4.3 Customize Payment Terms View......................................................................................... 17

5 Rules for Payment Terms ............................................................................................................... 18

5.1 Create, Edit, and Delete Rules for Payment Terms .......................................................... 18

5.2 Filter Rules for Payment Terms ........................................................................................... 20

5.3 Customize Rules for Payment Terms View ........................................................................ 21

6 Manage Payment Terms ................................................................................................................ 22

6.1 Filter Systems Available for the Payment Terms Governance App ............................... 23

6.2 Customize the Systems View ............................................................................................... 23

6.3 Map Payment Terms ............................................................................................................. 23


Content 5

7 Monitor Payment Terms ................................................................................................................ 26

7.1 Filter Purchasing Documents .............................................................................................. 27

7.2 Customize Purchasing Documents View ........................................................................... 29


Overview

Overview

Payment Terms Governance (PTG) is a suite of applications designed to create, monitor, and

control payment terms for every purchasing document from any SAP system.

PTG includes four applications built into the SAP Fiori launchpad. Each application covers

specific functions to contribute to the overall smooth governance of payment terms by

maintaining payment terms centralized, tracking purchase documents, and checking

whether the payment terms fully correspond to the documents according to selected

regions/countries, purchasing organizations, or companies.

Figure 1: Payment Terms Governance in the Fiori launchpad

Typically, the application is involved in the next payment terms use sequence: the creation of

payment terms in the app, the creation and use of payment terms in your systems, payment

terms mapping and monitoring in the app. The correction of payment terms in the system is

available if needed.

Payment Terms Governance provides the following applications:

Request Payment Terms

Rules for Payment Terms

Monitor Payment Terms

Manage Payment Terms


1 Basic Concepts 7

1 Basic Concepts

1.1 System Landscape

The application is hosted on the SAP Cloud Platform (SAP Cloud Foundry environment).

The entry point to the Payment Terms Governance application is the SAP Fiori launchpad,

which contains a suite of four web applications mentioned above.

The backend part is presented by the Node.js server that uses SAP HANA database to store

all user data. There is also the Java server pre-processor designed for preprocessing

documents.

The diagram shows the structure of the application:

PTG application comes ready to use. All necessary services are included, while the

unnecessary ones are disabled and do not use cloud resources. Disabling and enabling

services will always lead to a violation of the applications state. Therefore, it should be

performed only in cases of critical errors.


1 Basic Concepts

1.2 SAP HANA Database Tools

The SAP HANA database is used for PTG application backup and recovery. For more

information, see SAP HANA Database Backup and Recovery on SAP Help Portal.

1.3 Support

For any information related to your Payment Terms Governance app, contact us on

[email protected].

https://help.sap.com/viewer/42668af650f84f9384a3337bcd373692/2.0.04/en-US/4d79436fdad84f028ee689d9e2fdd512.html


2 Initial Setup 9

2 Initial Setup

Before you start your Payment Terms Governance app, initial setup is required.

• SAP Cloud Connector is used to link cloud applications with on-premise systems. Since

Payment Terms Governance is built on the SAP Cloud Platform, first install and

configure SAP Cloud Connector to link PTG with your on-premise systems. For more

information, learn about SAP Cloud Connector on SAP Help Portal.

• Describe subaccount level destinations to external resources. For the procedure

description, visit Create a new Destination on Subaccount Level on SAP Help Portal.

Here is the example of Ariba, Ariba Token, and S4C test systems as subaccount level

destinations:

• Set up sap-client, specify the system type in the sys_type field as S4HANA, and mark

those systems that are to interact with the PTG application as pt_system in the usage

field.

One of the systems is used as the central one. It is also a source of reference data for the PTG

app. Mark it as pt_main in the usage field:

! Only one system can be marked as pt_main.

If everything is correct, all the systems marked as pt_system and/or pt_main will be displayed

in the Manage Payment Terms application of PTG.

https://help.sap.com/viewer/cca91383641e40ffbe03bdc78f00f681/Cloud/en-US/e6c7616abb5710148cfcf3e75d96d596.html

https://help.sap.com/viewer/cca91383641e40ffbe03bdc78f00f681/Cloud/en-US/e6c7616abb5710148cfcf3e75d96d596.html

https://help.sap.com/viewer/7dde0e0e3a294f01a6f7870731c5e4ad/SHIP/en-US/b7cc58edfa19414c8b07f2e0f250ba5d.html


3 Roles in Payment Terms Governance

3 Roles in Payment Terms Governance

A system administrator assigns the Token_Exchange system role to all users.

Depending on the tasks set for the Payment Terms Governance app, one of the next three

roles is also assigned to the users:

Strategic Purchaser as an Originator

Administrator as a Coordinator

Operational Purchaser as an Executive

If you use SAP Identity Provider, you can build and control roles by yourself. For more

information about building roles, visit Building Roles and Role Collections for Applications on

SAP Help Portal.

3.1 Strategic Purchaser

This role is assigned to users who act as experts capable to create both payment terms in the

Cloud and rules of their usage. Strategic Purchaser has a permission to inform Operational

Purchasers about incorrect purchase requests.

This role is for users who need to view, edit, and create documents, payment terms, and

rules.

Strategic Purchaser uses the following apps:





3.2 Administrator

This role is assigned to users who are authorized to create and map payment terms across

all systems.

Administrator is authorized to view payment terms details as well.

Administrator uses the following apps:

https://help.sap.com/viewer/65de2977205c403bbc107264b8eccf4b/Cloud/en-US/eaa6a26291914b348e875a00b6beb729.html


3 Roles in Payment Terms Governance 11



3.3 Operational Purchaser

This role is assigned to users who are responsible for creating different types of purchase

documents. Also, the role is assigned to users who follow the rules already set up in the app

and monitor the accuracy of purchasing documents. In case of mistakes, Operational

Purchaser either fixes the data after finding out the inconsistencies or gets proper

notifications from Strategic Purchasers.

The Operational Purchaser role is for employees who need to view rules, documents, and

payment terms.

Operational Purchaser uses the following apps:






4 Request Payment Terms


To start working with the Payment Terms Governance app, you create a payment term in the

Request Payment Terms app. Here you create and maintain payment terms that are used

within the PTG app and request payment terms related to the required product for target

systems. Request Payment Terms app is developed to become a central storage of all the

payment terms applied to any of your systems.

Figure 2: Request Payment Terms app view

Key features

➢ Create, edit, and delete Payment Terms.

➢ Search and/or filter Payment Terms by defining the filter bar parameters.

➢ Customize the Payment Terms view by selecting “Display Settings”.

Constraints

➢ Only users with the role of Strategic Purchaser are authorized to create, edit, and

delete Payment Terms. Users with other roles can only view Payment Terms in this app.

➢ Once set, Day Limit value cannot be edited.

4.1 Create, Edit, and Delete Payment Terms

Procedure


4 Request Payment Terms 13

• To create a payment term, click on the “Create New Payment Term” icon:

Name the payment term.

Fill in and/or select the required fields.

Click Save.

You can also create a new payment term based on an existing one. Select a payment term

from the list, click Copy, change the required fields, and click Save.

• To edit the selected payment term, click Edit:

Click Save to save the edited payment term or Cancel to quit the edit mode with no

changes saved.

When you create/edit payment terms, the next fields are selected / filled in:

Field/Label Description

General Info

Payment Term ID A unique digital code automatically formed by the

Request Payment Terms app

Payment Term Description The description of a payment term is further used

(sometimes along with the payment term ID) to refer

to payment terms in the Payment Terms Governance

app




Day Limit Day of the month up until which the corresponding

payment terms are valid. For payment terms that

depend on whether the baseline is after or before the

15th of the month, you can store a two-part payment

term within one Payment Term Description

Target Systems SAP S/4HANA and/or other systems

Account Type You can define which account type can use this

payment term, e.g. customer and/or vendor

Changed On Date and time

Changed By Employee name

Created On Date and time

Created By Employee name

Baseline Data

Fixed Day Fixed day is used to overwrite the calendar day of the

baseline date

Additional Months The number of month(s) to be added to the calendar

month of the baseline month

Explanation The explanation is automatically formed by the app

according to Fixed Day and Additional Months values

Default for baseline date The default values from which the baseline date can

be determined. No default means that you have to

enter the base date manually during the document

entry

Payment Block

Block Key The payment blocking reason

Payment Method The payment method determines how payments are

to be made, e.g. by check, bank transfer, cash, etc.

Terms of Payment




Installment Payments An indicator that the invoiced amount is to be broken

down into partial amounts with different due dates

Recurring Entries: Add Payment

Terms from Master Record

This indicator controls whether the payment terms in

a recurring entry are to be taken from the customer or

vendor master record, if no terms of payment key

have been entered in the recurring entry original

document.

Set this indicator if you want the terms of payment

(due date, cash discount) for a recurring entry to be

taken from the customer or vendor master record and

not from the recurring entry original document. In the

master record of your business partner, define the

terms of payment key with this indicator set and

delete the terms of payment key in the recurring entry

original document

Discount (%) The discount (cash discount percentage rate that is

granted for the payment within the specified period)

and the number of days the discount is valid for in the

same line. The entered values are used to calculate the

cash discount.

You can enter up to three cash discount periods

Number of Days

Fixed Day Fixed calendar day serves as a part of the date on

which the first or second cash discount period ends

and/or the date on which the due date for net

payment is reached.

Additional months - the number of months which are

to be added to the baseline date for payment in order

to determine the end of the first or second cash

discount period and/or the date on which the due date

for net payment is reached.

The day and months specified in the terms of payment

are used in conjunction with the baseline date to

Additional Months




calculate the correct cash discount amount for the

payment date

Explanation Explanation is automatically formed by the app

according to the customizing you made

! The length of Payment Term Description is limited to 70 characters. Create a

description that will meet this requirement.

• To delete the selected payment term, click Delete.

4.2 Filter Payment Terms

Procedure

• Fill in the Payment Term field and/or select other filter bar parameters to filter payment

terms. Click Go to apply filters.

Search by Payment Term is performed through Payment Term ID and Payment Term

Description.

Other filters include Target Systems, Changed On, Changed By, Created On, and Created

By parameters.

Figure 3: Selecting Date Range to filter Payment Terms by the Сreated On parameter

• To restore the Payment Terms list after applying filters, make sure that Payment Term

and all the other filter fields in the filter bar are clear. Then click the Go button again.

• To customize the filter bar, click Filters.



! Created On and Created By filter parameters are not displayed by default.

4.3 Customize Payment Terms View

Procedure

• Click on the “Display settings” icon .

Choose Columns and/or a sorting parameter in the View Settings window. Click Ok to

apply your settings.

• To restore Payment Terms to the default view, click the Restore button in the View

Settings window.

! Created On and Created By columns are not displayed by default.


5 Rules for Payment Terms


With this app, you can create and maintain rules for payment terms that are used within

the Payment Terms Governance app. The direct correlation between certain types of

payment terms and selected regions/countries, purchasing organizations, or companies

prevents you from inaccurate purchasing documents.

Figure 4: Rules for Payment Terms app view

Key features

➢ Create, edit, delete, and copy Rules.

➢ Search and/or filter Rules by defining the filter bar parameters.

➢ Customize Rules view by selecting “Display Settings” icon .

Constraints

➢ Only users with the role of Strategic Purchaser are authorized to create, edit, and

delete Rules for Payment Terms. Operational Purchasers can only view Payment Terms

in this app.

5.1 Create, Edit, and Delete Rules for Payment Terms

Procedure

• To create a rule, click on the “Create New Payment Term Rule” icon:


5 Rules for Payment Terms 19

Fill in and/or select the required fields.

Сlick Save to save the created payment term rule.

You can also create a new rule based on an existing one. Select a rule from the list, click Copy,

change the required fields, and click Save.

• To edit selected rule, click Edit.

Click Save to save the edited rule or Cancel to quit the edit mode with no changes saved.

When you create/edit a rule for payment terms, the next fields are filled in/displayed:


General Info

Rule ID Unique digital code automatically formed by app

Rule Description Rule description is used to refer to the rules for

payment terms in the Payment Terms Governance

app

Company Company name and company code

Country Country and/or region

Organization Purchasing organization

Payment Term Payment Term Description (and Payment Term ID)

from the Payment Terms Governance app


Created By Name

Payment Terms




Payment Term Payment term description and payment term ID

Percentage Permissible percentage of the rule’s usage in all

documents

Explanation The explanation for baseline data is automatically

formed by the Request Payment Terms app

according to Fixed Day and Additional Months values

Changed On Date and time

Changed By Employee name


Created By Employee name

! The length of Rule Description is limited to 70 characters. Create a description

that will meet this requirement.

• To delete the selected rule, click Delete:

5.2 Filter Rules for Payment Terms

Procedure

• Fill in the Rule field and/or select filter bar parameters to filter rules for payment terms.

Click Go to apply filters.


5 Rules for Payment Terms 21

Search by Rule is performed through Rule ID and Rule Description.

Filters include Payment Term, Company, Country, Organization, Created On, and Created

By parameters.

• To restore the Rules list after applying filters, make sure Rule and filter bar fields are

clear and click the Go button again.

5.3 Customize Rules for Payment Terms View

Procedure

• Click on a “Display settings” icon .

Select Columns and/or a sorting parameter in the View Settings window. Click Ok to

apply.

• To restore Rules for Payment Terms to the default view, click the Restore button in the

View Settings window.

! The Payment Term column is switched off by default.


6 Manage Payment Terms


The Manage Payment Terms app is responsible for payment terms mapping according to the

SAP S/4HANA or another system they refer to. Payment terms mapping is needed for a

further check of purchase documents accuracy.

Figure 5: Payment Terms Mappings app with SAP systems

Figure 6: Payment Terms Mappings for the CentralPTSystem test system


6 Manage Payment Terms 23

Key features

➢ Filter systems available for the Payment Terms Governance app by using the search

field in the filter bar.

➢ Map Payment Terms from the Payment Terms Governance app to the corresponding

Payment Terms in System.

Constraints

➢ Only users with the role of Administrator are authorized to map Payment Terms.

6.1 Filter Systems Available for the Payment Terms Governance App

Procedure

• Fill in the System field in the filter bar to filter the available systems. Click Go to apply

filters.

The search is performed through System ID.

• To restore the Systems list after applying filters, make sure the System field is clear and

click the Go button again.

6.2 Customize the Systems View

Procedure

• Click on the “Display settings” icon .

Select required Columns and/or sorting parameters in the View Settings window. Click

Ok to apply your settings.

• To restore Systems to the default view, click Restore in the View Settings window.

6.3 Map Payment Terms

Procedure

• To map Payment Terms from the Payment Terms Governance app to the Payment Terms

in System, click Edit.

Press the button for selecting Payment Terms previously entered into PTG (in

the Request Payment Terms app). Then select corresponding Payment Terms from a

list:



Click Save to save payment terms mappings or Reject to quit the edit mode with no

changes saved.

The next fields describe payment terms mappings for a selected system:


Payment Terms Mappings

Payment Term in System Description of the terms of payment and terms of

payment key from SAP S/4HANA and/or other

systems

Days The number of calendar days following the baseline

date for payment after which the payment must be

made in order to pay within the due date for the net

payment period (from SAP S/4HANA and/or other

systems)

Payment Term Payment term description and payment term ID



6 Manage Payment Terms 25


Not mapped means that a payment term from the

system is not mapped to a payment term from the

Payment Terms Governance app

Mapped On Date and time

Mapped By Employee name


7 Monitor Payment Terms


With the Monitor Payment Term app, you control whether the relevant payment terms are

chosen for your documents.

Figure 7: Monitor Payment Terms app view

The checking mechanism is based on rules for payment terms that you create in Rules for

Payment Terms app. And payment terms are to be crated and mapped to payment terms

from your systems in Request Payment Terms and Manage Payment Terms apps as well.

For each document, its characteristics (company code, country, and purchasing organization)

from a payment term from are compared with the corresponding fields in the PTG rules for

payment terms.


7 Monitor Payment Terms 27

The check results are described by the document health:

Do a company code, country, and

organization from the document and a

company code, country, and organization

from the rule match?

Is a payment term from the

document stated in the rule?

Health

Not relevant The payment term from the

document is not mapped to

the payment term from the

PTG app

Not Mapped

No Not relevant No Rule

Yes No At Risk

Yes Yes On Track

For example, if a document gains an “At Risk” health, another payment term should be used.

The alternative options of payment terms are suggested by the app in the “Proposed” column.

The application suggests payment terms with the relevant company code, country, and

organization fields in accordance with the rules for payment terms.

The app provides a possibility to view the original documents. Click the document to see its

details in the display mode of the system it refers to.

Key features

➢ Filter purchasing documents by defining the filter bar parameters.

➢ Customize the Purchasing Documents view by selecting “Display Settings”.

7.1 Filter Purchasing Documents

Procedure

• Fill in the Document field and/or select other filter bar parameters to filter Purchasing

Documents. Click Go to apply filters.

The Document search is performed through Order Type and Order Number (from SAP

S/4HANA and/or the other systems).



Filters include the Source, Company Code, Purchasing Organization, and Created On

parameters.

• To restore the Purchasing Documents list after applying filters, make sure that Document

and all the other filter fields are clear, and click the Go button again.

The Monitor Payment Terms app suggests the next fields:


Purchasing Documents

Document Purchasing documents from SAP S/4HANA and/or

the other systems

Health Not mapped: the payment term from a purchasing

document is not mapped with the payment term


No rule: the payment term is mapped with the

payment term from the system but there is no

corresponding rule

At risk: there is a controversy between the rule and

the payment term used. Choose another payment

term

On track: a proper payment term is used for this

document according to the rules for payment term

Payment Term The payment term description and payment term ID

from the Payment Terms Governance app (if

mapped).

System: payment term from SAP S/4HANA or the

other system

Proposed Suggested options of payment terms in accordance

with the rules for payment terms

Purchaser A person responsible for purchasing the products

required by an organization

Country Country from the document

Company Company name and company code


7 Monitor Payment Terms 29


Organization Purchasing organization

Created On Date and time when the document was created

7.2 Customize Purchasing Documents View

Procedure

• Click on the “Display Settings” icon .

Select needed Columns in the View Settings window. Click Ok to apply your settings.

• To restore the Purchasing Documents to the default view, click Restore in the View

Settings window.

LeverX ® trademark is a registered trademark of LeverX company. Other trademarks or their parts used

in this document are the registered trademarks of their respective owners and are protected by law.

Payment Terms Governance © LeverX International LLC, 2019

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LeverX Payment Terms Governance

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