BaanERP 5.

0c
Financial Data per Business Partner
User Manual
A publication of:
Baan Development B.V.
P.O.Box 143
3770 AC Barneveld
The Netherlands

Printed in the Netherlands

© Baan Development B.V. 2000.
All rights reserved.
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is subject to change without
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Baan Development B.V.

Baan Development B.V.

assumes no liability for any
damages incurred, directly or
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between the software and the
information contained in this
document.
Document Information
Code: U7430A US
Group: User Documentation
Edition: A
Date: March, 2000
Table of contents

1 Introduction 1-1
2 Current Situation 2-1
Dependent set of companies 2-1
Business Partner Roles 2-2
Financial data per department 2-2
Order and invoice balances 2-3
Table sharing 2-7
Accounting office 2-8
Credit limit 2-8
Default Financial data 2-9
Search strategy 2-9
3 Multicompany setups 3-1
MS setup: Single Logistic-Single Finance 3-1
MS setup: Single Logistic - Multi Finance 3-1
Table Sharing 3-1
MS setup: Multilogistic - Single Finance 3-2
Table Sharing 3-2
Credit-limit check 3-2
MS setup: Multilogistic – Multifinance 3-2

Financial Data per Business Partner User Manual

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Table of contents

Financial Data per Business Partner User Manual

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About this document

This document is intended to provide technical and functional information about

the solutions in BaanERP that concern the specification of financial data per
Business Partner/department combination and credit limit handling.

Financial Data per Business Partner User Manual

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About this document

Financial Data per Business Partner User Manual

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1 Introduction

BaanERP 5.0a has introduced a new supplier/customer concept called Business

Partners, which consists of all partners as suppliers, customers, and so on.

F iC o 1 0 0 F iC o 2 0 0

EU1 EU2

S a le s O ffic e 1 S a le s O f f ic e 2

F in a n c ia l B u s in e s s P a r tn e r D a ta

B u s in e ss P a rtn e r

In BaanERP, a Business Partner is not directly related to a Financial Company.

The relation between a department (Sales or Purchase Office), Enterprise Unit,
and Financial Company determines the Financial Company related to a Business
Partner (see the picture above). Therefore, all financial transactions related to the
business with the Business Partner must be posted in the Financial Company of
the Sales or Purchase office.
In BaanERP 5.0a, all financial data as credit limit and payment terms are
specified per Business Partner, and as a consequence, this data has to be the same
for all departments that deal with this partner. In BaanERP 5.0c, you can specify
this financial data per Business Partner/department combination. This concept,
however, is very complicated, especially in a multicompany environment.
Therefore, the purpose of this document is to explain the current concept that
concerns what is called Financial data per BP.

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Introduction

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1-2
2 Current Situation

Dependent set of companies

Several places in this document mention a dependent set of companies.
Dependent sets of companies consist of logistic and finance companies, which
are linked to each other but not to companies outside this set. In the following
example, a logistic company A and a finance company B are linked if the logistic
company A contains an Enterprise Unit. This Enterprise Unit is what posts
financial transactions in finance Company B.
In the figure below, two dependent sets of companies exist, namely {100, 200,
500} and {300, 400, 600, 700}.

Finance Finance Finance

C om pany C om pany C om pany
500 600 700

Logistic Logistic Logistic Logistic

C om pany C om pany C om pany C om pany
100 200 300 400

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Current Situation

Business Partner Roles

Three types of Business Partners exist:
n External Business Partners
n Internal Business Partners
n Affiliated companies
In BaanERP 5.0c, the following roles can be specified per business partner:
n Sold-to - Buy-from
n Ship-to - Ship-from
n Invoice-to - Invoice-from
n Pay-by - Pay-to
For an Internal Business Partner, all eight roles must be specified, and for
Affiliated Companies, the sold-to and buy-from roles must be specified before
the Enterprise Modeling data can be specified.

Financial data per department

Per BP-department combination, financial data as terms of payment, payment
method, or credit limit can be specified. As a consequence, financial data in the
following roles can be specified per BP-department combination:
n Invoice-to Business Partner role (tccom112)
n Pay-by Business Partner role (tccom114)
n Invoice-from Business Partner role (tccom122)
n Pay-from Business Partner role (tccom124)
You do not have to specify for each department the financial data per
BP-department combination. A blank department (the department is left empty)
can be used. This data will be used in all cases where no department is specified
or when no financial data for this BP-department combination can be found. Use
this blank department for all BPs as a default. Note that if financial data per
BP-department combination must be specified for one attribute, then the other
attributes must also be specified.
Furthermore, order balances and invoice balances are determined per
BP-department combination:
n Invoice-to Business Partner Balances (tccom113)
n Invoice-from Business Partner Balances (tccom123)

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 Current Situation

So, either of the following possibilities exist:

n Use financial data per BP-department combination.
n Per BP, use financial data for a blank department, which is used if no
financial data is specified for a particular BP-department combination (note
that the blank department is always available).
Remark
In tccom112 and tccom122, a financial supplier/customer group can be defined
per BP-department combination. However, for one BP, the financial
supplier/customer group must be the same for all departments that belong to the
same Finance Company because the related ledger accounts must be the same.

Order and invoice balances

The invoice-to and invoice-from Business Partner Balance tables contain the
order balances and the invoice balances. In these tables, the balances are stored
by department, which through the accounting office (which will be explained in
the “Accounting office” section) can also be a finance company. By storing these
balances in this way, you can aggregate the data per department as well as per
company.
Note that in general, the order balance is filled through the logistic company and
the invoice balance through the finance company (taking care of the invoicing).

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Current Situation

The flow will be as follows:

Process Invoice-from Balances (tccom123) Invoice-to Balances (tccom113)

Order Balance Invoice Balance Order Open Billing Invoice
Balance request Balance
amount
Order entry Increase balance No action Increase No action No action
for Logistic balance for
Comp. and Logistic
purchase office Comp. and
Sales office
WH No action No action Decrease Increase No action
Receipts/Delivery/ balance for balance for
release to invoicing Logistic Finance
Comp. and Comp. and
sales office accounting
office
Purchase Invoice No action Increase balance Not Not Not
(ACP) for Finance applicable applicable applicable
Comp. and
accounting office
Sales Invoice Not applicable Not applicable No action Decrease Increase
posting (SLI) balance for balance for
Finance Finance
Comp. and Comp. and
accounting accounting
office office
Purchase invoice Decrease No action Not Not Not
approval (ACP) balance for applicable applicable applicable
Logistic Comp.
and purchase
office
Payment/Receipt No action Decrease No action No action Decrease
(CMG) balance for balance for
finance comp. Finance
and accounting Comp. and
office accounting
office

For the invoice-from balance, the invoice balance is first updated, and then
sometime later the order balance is updated. As a consequence, the open balance
is not the sum of the order balance and the invoice balance, and the amount for
which the invoice is already received but not approved (the order balance is not
yet updated) has to be subtracted from the sum.

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 Current Situation

The invoice-to order balance is only updated by sales, which means that other
orders, as service orders, are not taken into account for the credit limit check
until they are invoiced.
Credit limits must be in line with the BP/department settings. Three important
considerations exist:
n Credit limits can only be entered for the blank department.
n Credit limits are entered in the reference currency of the logistic company.
n Checking is centrally performed per business partner.
The next table shows an example based on this solution:

Department Logistic Enterprise Finance Home Reference

Company Unit Company Currency Currency
Sales Office SO1 100 EU1 200 HFL HFL
Sales Office SO2 100 EU2 250 DM HFL
Sales Office SO3 150 EU3 200 HFL HFL
Sales Office SO4 150 EU4 250 DM HFL
Accounting Office AC1 100 EU1 200 HFL HFL
Accounting Office AC2 100 EU2 250 DM HFL

All four sales offices created a sales order for Business Partner NL0010, with the
following amounts per order number:
n SO1/01: 100 HFL (Status: sales order is entered)
n SO2/01: 125 DM (Status: sales order is released to invoicing)
n SO3/01: 150 HFL (Status: sales invoice is posted)
n SO4/01: 110 DM (Status: sales order is entered)

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Current Situation

After these transactions, the Invoice-to Business Partner Balances (tccom113)

will look as follows:

Business Partner: NL0010

Company Order balance Open Billing Invoice
Requests balance
SO1 100 100 0 0
AC1 200 0 0 0

SO2 100 0 0 0
AC2 250 0 125 * 1.1 = 137.5 0

SO3 150 0 0 0
AC1 200 0 0 150

SO4 150 110 * 1.1 = 121 0 0

AC2 250 0 0 0

On BP/Invoice-to relation, the following credit limit is entered:

NL0010/empty : 3000 HFL
In this case, the total credit limit for this customer is 3000 HFL. Suppose a new
sales order is entered by SO4 with an order amount of 1000 DM. The following
must be performed:
n Check whether total order balance (calculated in HFL) is not greater then
total credit limit:
total order balance: 100 + 125*1.1 + 150 + 110*1.1 + 1000*1.1= 1608,5
HFL
The total credit limit is 3000 HFL, so the credit limit is not exceeded.
n Update in the balance table the record [NL0010, SO4, 150] with amount 110
+ 1000 = 1110.

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 Current Situation

Table sharing
With regard to table sharing, the following factors must be taken into account:
n Department table: tcmcs065 (is not allowed to be shared between logistic
companies)
For multiple logistic companies, the department table (tcmcs065) cannot be
shared between the logistic companies. Note that the department table can be
shared between finance companies.
n Invoice-to/from balances : tccom113 and tccom123 (have to be shared
between each dependent set of companies)
The Invoice-to/from balances can be shared without problems, because they
contain departments but only as a text field (in the key). These tables have to
be shared, because, as will be shown later, only a central credit limit is
supported. This credit limit check can only be carried out correctly if the
order and invoice balance tables are shared.
n General BP table: tccom100 (has to be shared)
Because the invoice balance tables must be shared, the BP table must also be
shared.
n Other BP tables
In general, all other BP tables can be shared. However, because the
department table (tcmcs065) cannot be shared between logistic companies,
the department field must be left blank in the tables where data per BP-
department combination can be defined (in other words, only the default
blank department is used). These tables are:
− Invoice-to Business Partners
− Pay-by Business Partner
− Invoice-from Business Partners
− Pay-to Business Partner
As a consequence, the sharing of one of these tables means that the financial
data defined in that table cannot specified per department. Otherwise, these
tables must not be shared.

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Current Situation

Accounting office
An accounting office
n Is used by Finance or Invoicing in cases where an invoice is created without a
purchase office or a sales office but where specific financial data must be
specified per Finance Company.
n Replaces the sales/purchase office in the invoice balance tables when the
amounts are posted to Finance. In the invoice balance table, the department
can be the accounting office or left blank. Here, the department will only be
blank if no accounting office is specified in the Company Parameters.
n Is specified in EMM as a key entity and linked to an EU, which is linked to a
financial company.
n Is no department in the sense that people are working in such a department (it
is only used to specify financial data by BP), so it represents the financial
company.
n Is the only department that can be created in a Finance Company (note that it
can also be created in a company of type Both or in a company of type
Logistic). If an Accounting Office in a company of type Finance is created,
an Enterprise Unit for that Accounting Office must also be created. This
Enterprise Unit will be linked to a fictive Logistic Company with the same
company number as the Finance Company.

Credit limit
The credit limit can only be specified for the blank department (note that when
the corresponding tables are not shared in each dependent set of companies, one
blank department can be used).
In order to have a credit limit check based on the order balance and the invoice
balance within a dependent set of companies, the invoice balance table must be
shared between all logistic companies and finance companies.
The credit limit check will be based on the order balance, the open billing
requests, and the invoice balance. The order balance is specified per department,
and the invoice balance is specified per accounting office. For the credit limit
check, the order balances, the open billing requests, and invoice balances of all
departments will be summarized.

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 Current Situation

Default Financial data

If financial data for a Business Partner Role is entered, the options are retrieved
from the Financial Company of the department. If no financial data is specified
per BP-department, the combination of BP/Blank department is used to get
financial data. For a company of type Logistic only, this financial data cannot be
entered in the logistic company, because this data is not present. In that case, the
BP-role tables have to be shared with a Finance Company (which has to be a
Group Company), and the user must go to that Finance Company to enter the
financial data for this Business partner. Note that this case is only relevant if the
blank department is used in a company that is only of type Logistic.

Search strategy
When invoicing, the financial data per BP-department combination is found by
using the following search logic in the finance applications:
1 Search for the role in the logistic company related to the department, which is
applicable for that order.
2 Search for the role for the accounting office in the finance company related to
the department, which is applicable for that order.
3 Search for the blank role in the finance company related to the department,
which is applicable for that order.
In the logistic applications, the following search logic is used:
1 Search for the role in the logistic company related to the department, which is
applicable for that order.
2 Search for the blank role in the finance company related to the department,
which is applicable for that order.

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Current Situation

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3 Multicompany setups

MS setup: Single Logistic-Single Finance

n Departments are always present.
n A finance company can be presented as an accounting office or left blank in
role data.

MS setup: Single Logistic - Multi Finance

Table Sharing
In order to perform sales invoicing, the following tables must be shared between
the Finance Companies and the Logistic Company:
n tccom100 (Business Partners)
n tccom110 (Sold-to Business Partners)
n tccom111 (Ship-to Business Partners)
n tcmcs065 (Departments)
Note that this table is possible, because only one Logistic Company is
involved. This table can be required for integration mapping schemes, billing
requests, interest invoices, and manual sales invoices.
n tccom113 (Invoice-to Business Partner balances)
For purchase invoice matching and approving, the following table also needs to
be shared:
n tccom120 (Buy-From Business Partners)
n tccom121 (Ship-from Business Partners)
n tccom123 (Invoice-from Business Partner balances)
A good approach is to: share your roles, which can lessen confusion.
Several records with credit limits can be specified for one BP. The credit limit
check will be based on the total balance and the sum of the credit limits. Suppose
the balance table tccom113 is not shared, in that case, the credit limit check at
order entry will only be based on the order balance (and the invoice balance of
the current finance company). In other words, the balance table must be shared
between all finance companies and the Logistic Company.

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Multicompany setups

MS setup: Multilogistic - Single Finance

Table Sharing
Invoicing by the Finance Company requires that the following tables are shared
between the Logistic Companies:
n tccom100 (Business Partners)
n tccom110 (Sold-to Business Partners)
n tccom111 (Ship-to Business Partners)
n tccom113 (Invoice-to Business Partner balances)
n tccom123 (Invoice-from Business Partner balances)
If tccom110 is shared and the employees are not shared (for example, because an
employee is linked to a department), then no employee can be added as a sales
representative to a Sold-to Business Partner).

Credit-limit check
The invoice-to/from balance table tccom113/123 must be shared between all
companies. Otherwise, the credit-limit check will only be carried out based on
the order balance of the current logistic company, and the invoice balance will
not be taken into account. In other words, the credit-limit check will be based on
the total order and invoice balances of all departments. From a business
perspective, this situation only makes sense if a central credit limit and a central
credit limit check are in place.
To get one central credit limit do either of the following:
n Share the role data, and only use the blank department to specify the
Financial data per BP (the data per BP-department combination cannot be
specified because the departments cannot be shared).
n Manually keep the credit limits the same in all LCs, which belong to the same
set of dependent companies.

MS setup: Multilogistic – Multifinance

With regard to table sharing and the credit limit check, most remarks made in the
earlier sections remain valid. Only the departments will be problematic because
in this setup, they cannot be shared. As a consequence, concerning various
problems that concern financial data by business partner can arise.

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