SAP Digital Payments add-on is a cloud application that enables businesses to process incoming credit card payments and other real-time payment methods in a secure and efficient way.
It helps to significantly reduce cash reconciliation efforts for all companies running any variant of SAP order/sale-to-cash processes (B2B, B2C, POS, web shops, and so on) who need to offer their customers flexibility and access to multiple digital payment methods.
SAP Digital Payments Features:
Enables business solutions to support credit card and further real-time payment methods in secure and efficient way:
- Multi-tenant-enabled SAP cloud application
- Integration into various SAP/non-SAP order/sale-to-cash processes (B2B, B2C, Online shops, etc.)
- Flexibility and access to multiple digital payment methods with automatic cash reconciliation.
- No sensitive credit card data stores in business solution.
- Compliant with Payment Card Industry Data Security Standard (PCI DSS).
SAP Digital Payments Components & Architecture
SAP Digital Payments is the hub between PSPs and SAP solutions, or applications that process incoming card payments. The complete process from settlements using secure tokens via PSP advice to final bank statement is automated.
It also support external payments made using external channels (online or mobile payment systems) other than payment cards. External payments can be implemented as:
- One-step procedure: direct capture-payment charged without prior authorization
- Two-step procedure: charge with authorization
Digital Payments Process
The main steps in Payment Card Process include: Card Creation, Card Authorization, Payment Settlement, and Digital Payment Advice
Card Creation: Payment card creation request in a consumer application is routed to relevant PSP via SAP Digital Payments. PSP saves the card data and creates an identification token which replaces the card number and returns it to consumer application.
Card Authorization: Approval request for transaction amount is sent to Digital Payments, which routes it to the relevant PSP in appropriate format, and returns the authorization to the consumer application.
Payment Settlement: Consumer application triggers periodic settlement runs to settle authorized payments, which is sent to correct PSP based on authorization and card details. PSP processes the settlement run and returns the results to consumer application.
Digital Payment Advice: Digital Payments receives periodic payment advise request for processes payments, requests the advice from relevant PSPs and returns advice details to consumer application.
Payment Card Processing in Accounting
References
FAQs
SAP Digital Payments add-on is a cloud application that enables businesses to process incoming credit card payments and other real-time payment methods in a secure and efficient way.
What is an SAP payment? ›
SAP payment processing involves the systematic handling of financial transactions within the SAP system. It involves a series of structured steps and procedures designed to authorize transactions, monitor their progression, and guarantee the precise movement of money within an organization.
What are the four payment methods in SAP? ›
The payment method setup supports only three payment means: Check, Bank Transfer, and Bill of Exchange (in specific localizations). You can select the other two payment means, Credit Card and Cash, when specifying the details of manual payments in the Payment Means window.
What is SAP digital? ›
SAP Digital Manufacturing solution is a manufacturing execution system (MES) that supports sustainable, risk-resilient manufacturing operations through a resource-efficient Industry 4.0 approach.
What is SAP used for in banking? ›
Benefits of SAP for the banking industry
They enable companies to analyze their financial data, monitor KPIs, and generate reports for regulatory compliance, risk management, and decision-making purposes. They also provide actionable insights, allowing organizations to make informed decisions.
Does PayPal use SAP? ›
“That's why PayPal teamed up with SAP to develop the PayPal Braintree digital payments app, providing consistent, standard access for SAP customers to connect with PayPal's payment processing solutions.
How do I receive payment in SAP? ›
In the field next to Payment on Account, specify the received amount. to open the Payment Means window. On the relevant payment means tab, specify the required details and choose OK. To add the incoming payment document to the database, choose Add.
What is SAP payment plan? ›
Payment plan data is replicated from SAP SRM to SAP ERP and can be used for invoice verification. Billing documents can be automatically generated in SAP ERP based on the payment plans you specify, reducing manual error and eliminating unintentional delays in payments.
How does payment terms work in SAP? ›
Payment terms specify the time period in which a supplier requests payment and offers any discounts that they choose to make available for early payment. For example, payment terms of PT30 might mean that a payment is due within 30 days, but with a 3 percent discount available if payment is made within 15 days.
What basically is SAP? ›
Founded in 1972, the company was initially called System Analysis Program Development (Systemanalyse Programmentwicklung), later abbreviated to SAP. Since then, it has grown from a small, five-person endeavor to a multinational enterprise headquartered in Walldorf, Germany, with more than 105,000 employees worldwide.
By centralising data management, SAP software provides multiple business functions with a single view of the truth. This helps companies better manage complex business processes by giving employees of different departments easy access to real-time insights across the enterprise.
What is SAP commonly used for? ›
After being established in 1972, SAP is the market share leader in enterprise resource planning (ERP), analytics, supply chain management, human capital management, master data management, data integration, and experience management. SAP software is used to control all types of critical business functions.
What does SAP mean pay? ›
SAP (Statutory Adoption Pay) is 90% of employee's average weekly earnings for the first 6 weeks. The remaining weeks will be paid at £172.48 or 90% of average weekly earnings, whichever is lower. SPP (Statutory Paternity Pay) will be paid at £172.48 or 90% of average weekly earnings, whichever is lower.
What is SAP transaction? ›
SAP transactions are programs or function modules that are called up within an SAP system by users or automated processes. It is the functional component of an SAP system, which is used to change data in the SAP database. The transaction is controlled by the SAP system, not directly by the database.
What is SAP in billing? ›
What Is SAP Billing Systems? SAP Billing Systems is a comprehensive billing management solution that allows organizations to manage and automate their entire billing process. SAP's billing system is a vital part of the company's customer relationship management (CRM) strategy.
What is SAP subscription billing? ›
SAP Subscription Billing is a public cloud solution that supports innovative, subscription-based business models. It enables flexible definition of product prices and automates processes such as subscription generation, rating, and preparation of billing data.
