SAP Best Practices for Insurance Baseline Business Processes

Transcription

1 SAP Best Practices for Insurance Baseline Business Processes

2 SAP Best Practices for Insurance Baseline Accounting Enablement for Insurance Operations This 30-day trial offers you a complete, live, hands-on experience of the accounting enablement for insurance operations, realized on the latest releases of generally available software components Includes SAP Accounting powered by SAP HANA, HANA Live, and Insurance Add-On Essential financials and reporting backbone for the legal entity Flexible organizational structure Simultaneous compliance to multiple accounting principles Primary (US GAAP or IFRS) Local GAAP Local STAT Group Preconfigured for industry-specific characteristics Line of Business Accident /Claim Year Risk Location Risk Location State The business solution includes advanced integrated end-user assistance and support 2

3 Solution Functional Scope ERP Scope General Ledger Accounts Payable Sub-Ledger Accounts Receivable Sub-Ledger Bank Accounting Fixed Asset Management Cost Center Accounting Internal Order Accounting Profit Center Accounting BPC Scope (Optional) Master Data Loading ERP G/L balances Allocations (using Script Logic) Reporting (G/L Actual) Out of Scope ECC Materials Management and Purchasing ECC Human Capital Management ECC Profitability Analysis Out of Scope Planning Consolidation Currency Conversions 3

4 Architecture with SAP Accounting powered by SAP HANA Stability Flexibility From FI Document CO Document Totals & Indices Financial Accounting Pre-Defined Aggregates Totals & Indices Management Accounting Processing Analytics Solution Benefits Harmonized internal and external reporting Higher flexibility in reporting and analysis To Stability FI Document CO Document Aggregation on the fly via HANA views Flexibility Processing Significantly reduced reconciliation effort Significantly reduced memory consumption Central journal for heterogeneous system landscapes Logical document Analytics 4

5 Master Data Processes 1001 Maintain Asset Master 1002 Maintain Internal Order (Capital Expense) 1003 Maintain Coding Block Entries 1004 Maintain Cost Center and Cost Center Group 1005 Maintain Cost Element and Cost Element Group 1006 Maintain Customer Master 1007 Maintain G/L Account and Account Group 1008 Maintain Internal Order (Ordinary Expense) 1011 Maintain Profit Center and Profit Center Group 1012 Vendor Master 1013 Maintain Allocation Cycle (Distribution) 9101 BPC Master Data (optional) 5

6 1001 Maintain Asset Master In this process, you create assets to assign to cost centers or cost center groups. 6

7 1002 Maintain Internal Order (Capital Expense) In this process, you create a capital internal order. 7

8 1003 Maintain Coding Block Entries This process is used for maintaining master data values for additional field ZZLOB (line of business) added to the General Ledger coding block. NOTE: This process is to be used only if SAP FS-CD is not implemented. If FS-CD is implemented, the master data values will be maintained in the appropriate process in FS-CD. 8

9 1004 Maintain Cost Center and Cost Center Group In this process, you create a cost center. You can determine if you need to create a cost center group. 9

10 1005 Maintain Cost Element and Cost Element Group In this document, you create the cost elements and cost element group. You create the primary cost element and assign it to a cost element group. You can create a group if it does not exist. 10

11 1006 Maintain Customer Master In this document, you identify a new customer (non-insurance) and create a customer master for them. 11

12 1007 Maintain G/L Account and Account Group In this process, you create and maintain a general ledger account, and update relevant account groups 12

13 1008 Maintain Internal Order (Ordinary Expense) In this process, you create an expense internal order that can be tied to a cost center or cost center group. Expense internal orders can be used to track expenses related to internal projects such as marketing campaigns, etc. 13

14 1011 Maintain Profit Center and Profit Center Group In this process, you create a profit center, and determine if you need to create a profit center group. 14

15 1012 Vendor Master In this process, you create a vendor master (non-insurance) 15

16 1013 Maintain Allocation Cycle (Distribution) The cost distribution will credit the cost centers included in the sender group (group in the reference cycle) for the posted amounts of the costs included in the distribution group (Z_OPER) to receiver cost center groups in different company codes, according to set percentages. In this process you maintain the pre-delivered cost distribution parameters (cost distribution cycles) to suit your particular organizational structure and allocation portions. 16

17 9101 BPC Master Data The solution uses General Ledger balances from a source ERP system for performing allocations and financial statement reporting. Whenever master data related to the General Ledger is created or changed in ERP, it is required to be updated in BPC (optional process) 17

18 Transactional Processes 1021 G/L Posting 1022 G/L Posting w/ Spreadsheet 1023 Period-End Closing (Central) 1024 Year-End Closing (Central) 1026 Asset Acquisition Direct Capitalization 1027 Asset Acquisition w/ AuC 1028 Asset Retirement with/without Revenue 1032 Manual A/P Invoice 1033 A/P Outgoing Payment 1034 Customer Statement 1035 A/R Incoming Payment 1036 Manual A/R Invoice 1037 Costs Allocation (Distribution) 9111 Period-End Closing (BPC) (optional) 18

19 1021 G/L Posting This process is used for making postings to the General Ledger i.e. journal entries between different GL accounts, etc. 19

20 1023 Period-End Closing (Central) The closing operations component assists the activities required for month-end closing. For this purpose, the system provides a series of standard reports that you can use to generate evaluations and analyses directly from all of the posted account balance. 20

21 1024 Year-End Closing (Central) Year-end closing is split into two phases: At the beginning of the new fiscal year, you open new posting periods and carry forward the balances from the previous year. You then prepare and create the financial statements and document the business transactions using the balance audit trail. 21

22 1025 Asset Adjustment for Accounting Principle This process is used to record an adjustment to the Asset APC due to accommodate alternate valuation according to different accounting principle. 22

23 1026 Asset Acquisition Direct Capitalization To purchase an Asset investment(s) that does not have an asset under construction (AuC) phase, you capitalize the asset directly in Asset Accounting. 23

24 1027 Asset Acquisition w/ AuC Assets under construction (AUC) are a special form of tangible assets. They are usually displayed as a separate balance sheet item and therefore require a separate account determination and their own asset classes. During the construction phase of an asset, all actual postings are assigned to the AUC. Once the asset is completed, a transfer is made to the final fixed asset 24

25 1028 Asset Retirement with/without Revenue In business, assets are acquired, constructed, used (depreciated) and ultimately disposed of or sold. This scenario shows the processes for asset disposition. An asset may be scrapped (that is, without revenue) or it may be sold. If the asset is scrapped, the asset retirement without revenue transaction is used. On completing the transaction the asset acquisition cost and accumulated depreciation are reversed out and the loss on asset retirement, if any, is recorded If the asset is sold, the asset retirement with revenue transaction is used. On completing the transaction the asset acquisition cost and accumulated depreciation are reversed out and the gain / loss on asset sale, if any, is recorded. 25

26 1032 Manual A/P Invoice Vendor invoices for items / services not purchased through a standard purchase order can be invoiced manually using the invoice recording functions in SAP. Additionally, a vendor credit memo could also be recorded in the same manner. The process involves getting approval for the invoice or credit memo from the responsible manager and entering the specifics of the invoice or credit memo. The processing of these requests creates open items for the vendor and updating the entered expense / accrual within the correct General Ledger account. 26

27 1033 A/P Outgoing Payment The process involves reviewing blocked vendor invoices and unblocking them if necessary. Vendor invoices and down payments are paid periodically using checks. This is achieved by using the payment program function in SAP. The program selects open invoices and down payment requests and presented in the form of a proposal. The proposal can be edited further to block certain open items, if required. Once the proposal is acceptable, the payment run is executed resulting in clearing the open items on the vendors account and crediting the outgoing checks bank clearing account. Checks are then printed using the print function of the payment program. 27

28 1034 Customer Statement This scenario will produce a batch of Customer Statements based on data found in the Customer Master identifying the statement interval, like weekly or monthly. The Customer statement is used to provide a list of clearing activity against the Customer s account and an open item list of invoices to be paid. The clearing activity covers a period of time, usually since the last Customer Statement. The statement also provides open item ageing section. 28

29 1035 A/R Incoming Payment This process enables the recording of general (non-insurance related) customer payments. Collections are posted into the system and are applied against open Customer liabilities. Individual payment-by-payment processing will have the User entering one transaction per payment. 29

30 1036 Manual A/R Invoice For miscellaneous revenue that is charged to a customer for non-core insurance, customer receivable can be manually recorded using this process. 30

31 1037 Costs Allocation (Distribution) In this process you distribute costs from a senders cost center group to a receivers cost center group, using settings specified in the distribution cycles. You can also reverse the result (postings) of a previous distribution. This operation may be required when issues appear during the period-end processing that require a correction, and/or distribution criteria have to be changed/corrected 31

32 9111 Period-End Closing (BPC) An example design is provided for cost center and profit center allocations. The assumption is that one company code records shared services expenses for all company codes in specific shared service cost centers (optional process) 32

33 Thank you Contact information: F name MI. L name Title Address Phone number 2014 SAP AG or an SAP affiliate company. All rights reserved.