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Paying third parties with SSP

Former Member
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Hi all,

We have a situation where we need to pay third party organisations for their services as part of a social benefit. Our landscape consists of CRM (inc Social Services module), ERP & PSCD. In addition to the normal payments we send to an individual, other organisations need to be paid small (mostly one off) payments.

It has been suggested that we could use a new SSP type to pay these third party organisations. I'm interested in peoples thoughts around whether or not this is a good idea, or if better alternatives exist.

Thanks everyone,
Dean Hunter

3 REPLIES 3

Former Member
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G'day Dean, I have also been looking at something similar to this over the last couple of weeks, except it is redirecting part of a customer's entitlement to a third party.

From what I have seen there are two ways of doing it:

  1. Using the deduct-to-party functionality then apply decision based deductions from a Social Deduction Plan or rule-based deductions from a BAdI - the final recipient is set to the third party in billing and invoicing
  2. Using the alternative payee functionality which redirects the payment to the third party

I have also been exploring the possibility of combining the two at different stages of processing to avoid getting involved with the revenue distribution functionality. For example Social Services processing uses the deduct-to-party functionality then I map it to an alternative payee at billing time. I am only working on PSCD so I haven't looked back further than the NCD header / item data structure into the Social Services module.

If I understand your scenario correctly then you are talking about granting an additional entitlement to the beneficiary to cove the cost of the service and then redirecting it to the third party for payment for a service, so I guess this is slightly different to what I have been looking into. You could still do it within the same SSP type, it would involve granting an additional entitlement item then sending it to the third party using either the deduct-to-party or alternative payee functionality. Other than saving CPU on reassessments I can't think of any advantages that would come from separating it out into a different SSP type over defining a separate entitlement item (product) type for these payments.

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Hello John,

Was interested in your comment regarding avoiding using the standard SAP Revenue Distribution functionality to perform these payments. Can you explain further?

Best Regards

Don

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Hi Don,

The main reason we were trying to avoid revenue distribution was to avoid defining an additional main and sub for each type of deduction. This is necessary because the deduction main and sub has to be marked 'not-for-payment' and then a new main and sub for use in the revenue distribution posting to the final recipient CA which should be picked up by the payment run or for reporting. However in the end we went back to the standard revenue distribution approach and defined the extra main and subs.

In the end we didn't implement third party deductions. However we did implement deductions from a beneficiary's entitlement to clear outstanding receivables in PSCD. To do this the process is as follows:

  • Net calculation - deduct-to-party set as the beneficiary
  • Billing - final recipient CA determined and set on the billing doc items (deduction main and sub set)
  • Invoicing - final recipient CA passed through to the posting docs (deduction main and sub set, split out into separate doc types for reporting)
  • Revenue distribution - posts to final recipient CA under new main and sub
  • Clearing - clears outstanding receivables against postings from revenue distribution

In this case the deduct-to-party = the beneficiary and final recipient CA = the beneficiary's CA. The revenue distribution might seem like an extra unnecessary step in this case but it's required to get the postings correct.