How ALE and IDocs Affect SAP In-House Cash Configuration

by Juergen Weiss, SEPA-Now Consulting (March 20 0!

Become familiar with the configuration of the Application Link and Enabling (ALE) settings of SAP In- ouse !ash" #ollow a step-b$-step technical implementation of ALE to enable the structured e%change data &ia Intermediate 'ocuments (I'ocs) within SAP In- ouse !ash" Become familiar with the most important I'oc t$pes and their use in SAP In- ouse !ash" (nderstand how $ou can test the correct ALE configuration within the SAP s$stem"

!ategories) !ash *anagement+ #S!*+ #inancials

Key Concept
SAP In-House Cash allows corporate cash and treasur$ management departments to set up a pa$ment factor$ and to centrali,e their pa$ment flows" -ne of the challenges is that the business processes of SAP In- ouse !ash span multiple financial components and re.uire a broad set of business and technical skills" SAP In- ouse !ash can help corporate treasurers or cash managers get a faster o&er&iew of their li.uidit$ position and achie&e a higher degree of transparenc$ of their cash flows" *ultinational organi,ations can centrali,e their group cash flows and establish an in-house bank" In most cases SAP In- ouse !ash is deplo$ed on a separate instance than SAP E/P #inancials and has to be connected to &arious other SAP s$stems within the group" 0o enable the structured e%change of data between distributed SAP (or non-SAP) s$stems+ SAP In- ouse !ash uses Application Link Enabling (ALE)" It is the technical basis for SAP In- ouse !ash+ but &er$ few SAP professionals are familiar with this technolog$ and the necessar$ settings to configure SAP In- ouse !ash" I1ll pro&ide a step-b$step introduction to e%plain these settings and make $ou familiar with some of the ALE and Intermediate 'ocument (I'oc) basics to better understand the configuration of SAP In- ouse !ash"

Note
#or another reference about SAP In- ouse !ash and in-house banks+ see A$lin 2orkma,1s article 3In- ouse !ash !enter *anages Pa$ment Processes+4 which was posted to the "inancials E#$ert knowledgebase in *a$ 5667"

Some ALE and IDoc asics

0here are essentiall$ two wa$s to technicall$ link two SAP s$stems &ia ALE) 8" If the s$stems are independent+ $ou implement a loosel$ coupled technical integration" In the case of a communication error or if the called s$stem is una&ailable+ the calling s$stem can continue to work" In this case+ s$stem-to-s$stem communication is happening largel$ on an as$nchronous basis and messages are e%changed between the s$stems" 0he data format that the SAP s$stem uses for the as$nchronous ALE communication is called I'oc" 0he technical communication between SAP s$stems is based on transactional /emote #unction !alls (t/#!)" If $ou decide to establish a narrow coupling between SAP s$stems $ou re.uire the called s$stem to alwa$s be a&ailable" 0he technical basis is s$nchronous calls of a remote-capable function module in the target s$stem" Such s$nchronous calls are suitable for &erif$ing or reading data in other s$stems"

5"

Since the SAP In- ouse !ash business scenarios are not suitable for the narrow coupling shown in option 5+ I1ll focus on the first option in this article" SAP In- ouse !ash is based on as$nchronous communication that takes place between SAP In- ouse !ash+ the SAP s$stem with the general ledger of the head.uarters+ and the SAP s$stems of the subsidiaries with the

respecti&e financials s$stems" Some of these s$stems ma$ not e%ist in $our s$stem landscape (e"g"+ if $ou decide to run the SAP In- ouse !ash s$stem and the general ledger on a single instance)+ but the basic ALE configuration is alwa$s the same" 0he data format that is used for as$nchronous ALE communication between logical SAP s$stems is the I'oc" An I'oc represents a configuration of an I'oc t$pe that determines the I'oc structure and indicates the SAP data format that is used to transfer the data for a business transaction" Each I'oc consists of a header+ se&eral data segments+ and status records" 0he I'oc header contains the contents+ structure+ sender+ recei&er+ and current status of the I'oc" Each data segment contains a standard header consisting of a se.uential segment number+ a description of the segment t$pe and a 8666 character long string field containing the actual data of the segment" 0he status records show the histor$ of the s$stem processing steps applied to the I'oc so far" 0he format is identical for each I'oc t$pe" 9ou can displa$ I'oc t$pes b$ following this menu path 0ools : ABAP ;orkbench : ALE : ALE 'e&elopment : I'oc 0$pes" 9ou use the following I'oc messages and message t$pes for the communication between SAP Inouse !ash and other SAP s$stems)

#I<S0A (I'oc message t$pe #I<S0A68) for account statements from the in-house cash center (I !!) to the &arious affiliates PA9E=0 (PE=/5665) for pa$ment orders from the &arious affiliates for the I !! or the pa$ment order from the I !! to the clearing partner 'I/'EB (PE=/5665) for direct pa$ment orders from the &arious affiliates for the I !! or the pa$ment order from the I !! to the clearing partner #I'!!5 (#I'!!P68) for financial transaction data between the I !! and the general ledger of the head.uarters

0o configure the communication between the &arious SAP s$stems+ $ou need an ALE distribution model" 0he ALE distribution model identifies the logical SAP s$stems and describes the message flow between these s$stems" It also defines which I'oc messages are e%changed between the logical s$stems" 9ou can access the configuration of the ALE distribution model b$ following I*> menu path SAP <et;ea&er : Application Ser&er : I'oc Interface?Application Link Enabling (ALE) : *odeling and Implementing Business Processes : *aintaining the 'istribution *odel" 9ou can also use transaction SALE+ which pro&ides $ou with a submenu containing all rele&ant ALE configuration steps (!igure ")"

!igure "

0ransaction SALE with all ALE configuration settings

0o configure ALE settings+ carr$ out the following configuration steps in the SAP In- ouse !ash s$stem in this order)

Step 8" 'efine the logical SAP s$stems and assign them to a client Step 5" 'efine the target s$stems for /#! calls Step @" *aintain the ALE distribution model Step 7" >enerate partner profiles Step A" 'istribute the ALE model &iew Step B" *aintain the partner profiles for business partners

In the following sections+ I describe these si% steps in detail" 0he onl$ prere.uisite for this configuration is that $ou ha&e alread$ created the SAP In- ouse !ash business partners (e"g"+ clearing partner)"

Step "# Define the Logica$ SAP Systems and Assign %hem to a C$ient
9ou need to define logical s$stems because the$ uni.uel$ identif$ SAP s$stems within an ALE distribution model" -ne logical s$stem corresponds to a client" -nce $ou ha&e assigned a logical s$stem $ou can1t change the assignments an$more" 9ou ha&e to maintain logical s$stems (e"g"+ the de&elopment+ .ualit$+ and producti&e s$stems) for $our entire SAP landscape and $ou can1t transport these entries between the SAP s$stems" A naming e%ample for a logical s$stem could be I !'!L<0656 (for the de&elopment s$stem)" 9ou can maintain logical

s$stems &ia transaction SALE or transaction S!!7 ( !igure &)" If $ou want to identif$ the logical s$stem of $our own client+ look up field L->S9S in table 0666"

!igure &

*aintain logical s$stems

Step &# Define the %arget Systems for '!C Ca$$s

Because SAP s$stems communicate &ia t/#! $ou ha&e to maintain appropriate /#! destinations for the SAP s$stems of $our subsidiaries" If the head office1s #I s$stem is not in the same client as SAP In- ouse !ash+ $ou need to create a /#! destination for #I as well" /#! connections are maintained b$ following the I*> menu path SAP <et;ea&er : Application Ser&er : I'oc Interface?Application Link Enabling (ALE) : !ommunication : !reate /#! !onnections+ or b$ using transaction S*AC" *ake sure that the name of the /#! connection is e%actl$ the same as the name of $our logical s$stem $ou created before" 0here are different connection t$pes in the SAP s$stem+ but in this case $ou ha&e to select t$pe @+ which is rele&ant for SAP connections" (nder the tab strip 0echnical Settings+ $ou need to enter the ser&er name of the target machine to which $ou want to connect (!igure ()" Select the ostname radio button in the Sa&e to 'atabase as section because the IP address might change in the case of a s$stem migration"

!igure (

!reate /#! destinations

Enter the client as well as the /#! user and its password under the Logon D Securit$ tab" -nce $ou1re done with this $ou can test whether this user is &alid on the target s$stem b$ clicking the !onnection 0est button"

Step (# )aintain the ALE Distri*ution )ode$

9ou need to assign the &arious logical s$stems and the message t$pes that are e%changed within an ALE distribution model" 'o this b$ following I*> menu path SAP <et;ea&er : Application Ser&er : I'oc Interface?Application Link Enabling (ALE) : *odeling and Implementing Business Processes : *aintain 'istribution *odel and 'istribution Eiews or b$ using transaction B'B7"

Note
If SAP In- ouse !ash and $our subsidiar$ companies are in the same client+ $ou can ignore step @" 9ou would ha&e to create a transactional /#! port instead with transaction ;E58" Since this is rather uncommon+ I focus on the ALE distribution model in this article" !hoose a meaningful name for $our ALE distribution model and click the Add message t$pe button" 9ou now ha&e to enter the settings for the three I'oc message t$pes $ou need within SAP In- ouse !ash) #I<S0A+ PA9E=0+ and 'I/'EB" 0he settings are similar (!igure +))

*odel &iew (the technical name of the model &iew $ou created) Sender (the logical name of either the head office or the subsidiar$) /ecei&er (the logical name of either the head office or the subsidiar$) *essage t$pe (#I<S0A+ PA9E=0+ or 'I/'EB)

!igure +

Add I'oc message t$pes to an ALE distribution model

0he sender and recei&er depend on the message t$pe" In the case of bank statement #I<S0A+ the sender is the logical s$stem of the head office and the recei&er is the logical s$stem of the subsidiar$" In the case of the pa$ment order PA9E=0 and the direct debit authori,ation 'I/'EB it is the other wa$ around F the sender is the logical s$stem of the subsidiar$ and the recei&er is the logical s$stem of the head office"

Step +# ,enerate Partner Profi$es

!reate the partner profiles for the communication between the logical s$stems" (se transaction B'G5 or follow I*> menu path SAP <et;ea&er : Application Ser&er : I'oc Interface?Application Link Enabling (ALE) : *odeling and Implementing Business Processes : Partner Profiles : >enerate Partner Profiles ( !igure -)" 9ou ha&e to define the ALE distribution model and e%ecute this report on e&er$ s$stem locall$" !hoose the option 0ransfer I'oc immediatel$"

!igure -

>enerate partner profiles

Step -# Distri*ute the ALE )ode$ .iew

>o back to transaction B'B7 and select the change &iew of the ALE distribution model" *ark $our model &iew and select Edit : *odel &iew : 'istribute and mark the subsidiar$ s$stem as target s$stem" Afterwards+ check the subsidiar$ s$stem to see whether the ALE distribution model has been distributed" #or technical purposes+ the SAP s$stem generates the message t$pe S9<! in the partner profiles of the partner t$pe LS (logical s$stem) in the outgoing direction" 0herefore+ $ou don1t need to create the message t$pe S9<! in $our model &iew"

Step /# )aintain the Partner Profi$es for

usiness Partners

In the final configuration step $ou manuall$ maintain the partner profiles" #ollow menu path 0ools : ALE : ALE Administration : /untime Settings : Partner Profiles or use transaction ;E56" In this case+ focus on partner t$pes >P (business partner) and LS (logical s$stems) because the$1re the rele&ant ones for SAP In- ouse !ash" #irst+ $ou ha&e to create an entr$ for the business partner" Select >P and click the create icon (!igure /)"

!igure /

!reate a business partner profile

*aintain the following settings)

Partner number (number of the business partner of the head.uarters) Partner t$pe) (S (user) Agent (enter the I' of the user who should be informed &ia workflow if an I'oc has errors) Language (language of the user)

<ow $ou need to create the inbound parameters for the message t$pes 'I/'EB and PA9E=0 as well as the outbound parameters for the message t$pe #I<S0A" 0o do this+ click the plus icon below the table of the inbound parameters+ which becomes &isible after $ou ha&e sa&ed $our entries" (se the parameters in %a*$e " for the two inbound message t$pe entries" 9ou can also cop$ the PA9E=0 entr$ to make data entr$ a bit easier"

%a*$e "

Inbound parameters for the message t$pes PA9E=0 and 'I/'EB

!lick the plus icon below the table of the outbound parameters and enter the &alues in %a*$e & for the message t$pe #I<S0A" 9ou ha&e two options for the output mode) 0ransfer I'oc immed" (immediatel$) or !ollect I'ocs (!igure 0)" If $ou select the second option+ $ou ha&e to create a batch Hob for the SAP program /SE-(066"

%a*$e &

-utbound parameters for the message t$pe #I<S0A

!igure 0

*aintain the outbound #I<S0A parameter for a business partner

0he second rele&ant partner t$pe is LS" #or this+ $ou also need to create inbound parameters for message t$pes PA9E=0 and 'I/'EB+ as well as the outbound parameters for the message t$pes 'I/'EB+ PA9E=0+ and S9<!" !reate the nodes for the two inbound parameters with the plus icon" 0hen+ for the two inbound message t$pes entries+ use the parameters shown in %a*$e ("

%a*$e (

Inbound parameters for the message t$pes PA9E=0 and 'I/'EB

If $our head office1s #I s$stem is not in the same client as SAP In- ouse !ash+ $ou must also maintain the inbound parameter shown in %a*$e +"

%a*$e +

Inbound parameters for the message t$pes #I'!!8 and #I'!!5

#or the outbound parameters+ $ou ha&e to maintain for the message t$pes 'I/'EB and PA9E=0 the entries shown in %a*$e -"

%a*$e -

-utbound parameters for the message t$pes PA9E=0 and 'I/'EB

#or the third outbound parameter+ enter one more entr$ for the message t$pe S9<! with the attributes in %a*$e /"

%a*$e /

-utbound parameters for the message t$pe S9<!

If $our head office1s #I s$stem is not in the same client as SAP In- ouse !ash+ $ou must also maintain the additional outbound parameter shown in %a*$e 0"

%a*$e 0

-utbound parameters for the message t$pes #I'!!8 and #I'!!5

ALE Configuration in the SAP System of the Su*sidiary

0he same si% steps that I showed $ou are re.uired to configure the ALE settings in the SAP s$stem of the subsidiaries that communicate with SAP In- ouse !ash" 9ou ha&e to make these entries for inbound and outbound message t$pes for each subsidiar$ compan$ that communicate with SAP In- ouse !ash" 0he first fi&e steps are similar" 0he onl$ difference is that $ou enter all settings for the subsidiar$ instead of the head office" In step B $ou need to create onl$ one partner profile for B (bank)" 9ou ha&e to create the in-house bank with transaction #I !" 9ou can1t create these partner profiles for the in-house bank if $ou ha&en1t first created a house bank with transaction #I85" 0he partner t$pe settings for B are the same as abo&e with BP" 9ou need to create an inbound parameter for the message t$pe #I<S0A and two outbound parameters for the message t$pes PA9E=0 and 'I/'EB" 0he settings for the inbound parameter are shown in %a*$e 1" 0he settings for the outbound parameter are shown in %a*$e 2"

%a*$e 1

Inbound parameter for the message t$pe #I<S0A

%a*$e 2

-utbound parameters for the message t$pes PA9E=0 and 'I/'EB

0he settings for the business partner t$pe LS (logical s$stem) are the same as for the business partner t$pe B and $ou can simpl$ cop$ them" If the subsidiar$ is in the same s$stem as SAP In- ouse !ash+ $ou basicall$ send I'ocs to the same SAP s$stem" In this case+ the message t$pes PA9E=0+ 'I/'EB+ and #I<S0A of the partner t$pe LS ha&e identical inbound and outbound parameters" ;ith this final step+ the ALE settings in both the head office1s s$stem and the subsidiar$ s$stems are complete"

3uergen 4eiss works in the functional area of SAP #inancial Suppl$ !hain *anagement" As part of SAP1s product management team+ he was globall$ responsible for the SAP #S!* applications+ including Electronic Bill Presentment and Pa$ment+ 'ispute *anagement+ !ollections *anagement+ !redit *anagement+ 0reasur$ and /isk *anagement+ Bank /elationship *anagement+ In- ouse !ash+ and Accounts Pa$able and /ecei&able" 9ou ma$ contact Iuergen &ia email at Huergen"weissJsepa-now"de"