Generally this is the process of accounting of Security Deposit collected from customers.

Security Deposit Management:-

Collecting of security deposits required from Business partners.

Tracking of security deposits collected from Business partners.

Refund of the security deposit when it is no longer required.

Type of Security Deposits:-

Cash Security Deposits (Accepted in terms of Cash or Check)

Non-Cash Security Deposits (In terms of Bank Guarantee or Letter of Credits or other available means)

Business Processes involved:-

  1. 1.       Request of Security Deposits

The request is usually generated when a Business Partner is moved in.

The security deposit requests are at the contract level.

Always creation of the security deposit is a manual process which triggers a security deposit request transaction, for mass creation you can develop a custom program to trigger this transaction.

Base T-Code = FPSEC1

1 fpsec1

2 fpsec1

  1. 2.       Receipt of Security Deposits

There is no financial transaction taking place in case of a Non Cash Security Deposit.

Cash Security Deposit paid by customer to the Company will be shown as a protected credit item in Business Partner account.

Cash Security Deposit once realized can’t be set-off against any other open item in customer ledger, during the account maintenance or payments made (Down Payment Concept).

The security deposit should have to be released from down payments first to set off against any other open item.

Instalment payment plan for security deposits is allowed based on certain criteria & can be customized as per requirements.

Base T-Code (Cash): FP05 / FP25 / FPCJ

 (After Receipt status would change to PAID)

3 fpsec3

Base T-Code (Non-Cash): FPSEC2

 4 fpsec3

(After Realization Status would change to RECEIVED)

5 fpsec3

  1. 3.       Enhancement / Revision of Security Deposits:-

Security Deposit can be revised based on

Consumption history

Request for change of plan type

Revision of gas price

  1. 4.       Interest on Security Deposits:-

Interest on Cash security deposits can be calculated based on Interest Key.

The calculated interest is credited to the Business partner account till the date of release the security deposit (If released).

Base T-Code-1: FPI2

6 fpi2

Base T-Code-2: FPINTM2

7 fpintm2

  1. 5.       TDS on Interest paid for Cash Security Deposits:-

The net interest amount will be posted to the Business Partner after deduction of Withholding tax amount (TDS).

Withholding tax payment will be happen through Finance module.

TDS certificate will be generated to Business partner from FICA module.

  1. 6.       Refund / Release of Security Deposit:-

Security deposits are released manually or by system itself, reasons are,

Contract Termination

Final Billing / Invoicing

Name Transfer

Change in business Policy

Change in Plan, etc

Security deposit is now available to set off against open items in customer’s account if any. Otherwise it will remain ‘On Account’ which can be refunded to customer via check.

Base T-Code: FPRL

8 fprl

Basic Configurations:

Posting Areas related to Security Deposits:

0800  Special Settings for Securities

0801  Specifications for Clearing Security deposit

1081  Cash Deposit Interest: Specifications

R200  Collateral transfer specifications for change of address

R201  Reverse collateral transfer specification for change of address

1083  Mass Activity Interest on Cash Security deposit

1086  Assign Transactions to Withholding Tax Code & Interest Key


EVENTS (SAP EXITS) Related to Security Deposits:

716      Correspondence: Print Security Request

717      Correspondence: Create Security Request

726      Correspondence: Print Cash Sec.Dep.Interest

727      Correspondence: Create Cash Sec.Dep.Interest

800      Security Deposit: Determine Transaction

810      Security Deposit: Determine Amount

820      Security Deposit: Master Data Check

830      Security Deposit: Form Printout

840      Security Deposit: Contract Check

860      Security Deposit: Due Date Monitoring

870      Release of Cash Security Deposit: Additional Checks

1778    Mass Activity: Cash Security Deposit Interest Calculation

2005    Cash Sec. Dep. Int: Interest Key Determination

Following are the configurations related to Security Deposits:-

9 spro

  • Define General Parameters for Security Deposits

10 spro

  • Define security deposit Reasons

11 spro

  • Define Non-cash security deposit Category

12 spro

  • Define Status for Non-Cash Security Deposit

13 spro

  • Define Number Ranges for Security deposit (T-Code: FPSEC0)
  • Define Reversal Reason for Security Deposit

14 spro

  • Maintain Components for Calculating Revised Security deposit
  • & other configurations as per requirement.
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