MasterCard International and SPS International Limited (SPS) on May 14 introduced MasterCard SmartLink(TM), a new software product that integrates procurement information from MasterCard Corporate Purchasing Cards(TM) with leading enterprise resource planning (ERP) systems, including SAP R/3. The integration of the MasterCard payment and data delivery mechanism into a corporation’s ERP system streamlines the monitoring, management and administration of direct and indirect corporate expenses. Now, ERP system administrators may generate transaction data specific to any corporate purchasing card cardholder at any point of transaction worldwide, according to MasterCard. MasterCard SmartLink has been designed to specifically harness the tight controls inherent in SAP R/3 and other ERP systems, while eliminating the need for many of its costly and time-consuming manual processes which can also open potential for fraud, error and account abuse. With MasterCard SmartLink, businesses can automatically collect purchasing data, approve transactions, generate invoices, merge data with the general ledger, make split payments and download individual transaction information without having to wait until month’s end to receive the statements to track expenses. Full details of transactions are available for review by the designated company officer within 48 hours of purchase transaction. Furthermore, the combination of SAP R/3 with MasterCard SmartLink and a MasterCard Corporate Purchasing Card enables a corporation to link its business processes with those of customers and suppliers, both online and offline, according to MasterCard. “MasterCard’s global alliance with SPS underscores our commitment to create new solutions to benefit MasterCard Corporate Purchasing Card cardholders, their suppliers and financial institutions,” said Steve Abrams, senior vice president, Corporate Payment Solutions, MasterCard International. “MasterCard SmartLink allows companies to automatically manage their transaction data on a day-to-day basis. Now, companies can spend less time administering financial processes and more time focusing on growing their core businesses. With MasterCard SmartLink, businesses will be able to reduce processing time and paperwork associated with internal authorization processes by up to 80 percent.” How Does SmartLink Work on SAP R/3? The MasterCard SmartLink software is installed on a corporation’s SAP R/3 Application Server and remains separate from the rest of the R/3 system, according to Abrams. Business Application Process Interfaces (BAPIs) developed by SAP provide the only interfaces to the SAP R/3 modules. MasterCard SmartLink is easily installed and may be customized to meet ERP system administrator preferences. Only minimum training is required to operate the program. The four critical steps to MasterCard SmartLink are: Step 1 – The Purchase The MasterCard Corporate Purchasing Card authorizes the cardholder to purchase within the parameters of the profile created by management. Upon the offer of a MasterCard Corporate Purchasing Card as the payment method, the supplier requests authority from the bank before supplying goods. If the transaction is authorized, the bank will collect the point of sale information using its Card Payment System; pay the supplier; and pass on the securely encrypted financial and product line item details of the transaction to MasterCard’s data repository in St. Louis. The MasterCard Corporate Purchasing Card may also be used as the method of payment for purchase orders generated in SAP R/3. In this process, cardholder information is automatically collected from MasterCard SmartLink and attributed to an outgoing order. Step 2 – The Approval Through MasterCard SmartLink, data is downloaded from St. Louis into the corporation’s SAP R/3 application server. Data is merged with accounting systems and automatically sent to the appropriate cost centers, funds and general ledger expense accounts. At this point, two screens are presented. A cardholder may review the details of his or her purchase and add, but not delete or change, the individual line details. An authorized manager, however, may view and change the accounting information to direct the data or split payments to the appropriate cost center(s) for reconciliation with the monthly statement from the bank. For users who prefer to monitor the process of a transaction, an e-mail driven work-flow system is available to meet this need. Step 3 – The Invoice Once approved, MasterCard SmartLink will automatically generate an SAP R/3 invoice with full details of the supplier and line items, made payable to the bank, but with “blocked for payment” status. Additionally, purchase orders and goods receipts may also be generated if three-way matching is required. Step 4 – The Payment On receipt of the bank’s statement, MasterCard SmartLink matches the transactions on the statement with those on the “blocked for payment” invoices. Once reconciled, invoices will be released automatically for payment to the bank. “SPS is very pleased that MasterCard Corporate Purchasing Card cardholders will have access to MasterCard SmartLink’s functionality and cost saving benefits,” said Errol Finkelstein, chief executive officer, SPS. “We are committed to helping global businesses take advantage of the efficiencies offered through end-to-end e-procurement and offline systems. The technology we’ve built into MasterCard SmartLink is the boldest step in that direction. Our alliances with some of the world’s leading ERP consultancies enables SPS to progressively fast-track implementation of MasterCard SmartLink on a global basis.” About MasterCard Corporate Payment Solutions The MasterCard Corporate Payment Solutions group is dedicated to providing innovative, flexible, end-to-end payment solutions to corporations, small businesses and the public sector worldwide. The MasterCard Corporate Purchasing Card is a purchasing tool designed to reduce the costs associated with authorizing, tracking, purchasing and reconciling business purchases. Cards can be assigned to individuals or departments responsible for procurements. MasterCard Corporate Payment Solutions now provides a systemic solution for businesses to compete in a borderless economy. For instance, a buyer can now locate and research a seller using MasterSource, which provides detailed information on a supplier’s performance in e-marketplace transactions; make the purchase with the MasterCard Corporate Purchasing Card; and complete the payment process with MasterCard SmartLink. Additional information about MasterCard SmartLink is available at www.mastercardsmartlink.com. About SPS International SPS International operates offices in the United States and South Africa, with a home office in the Republic of Mauritius. For the last seven years, SPS has been actively involved with the implementation of SAP R/3 Materials Management and Production Planning modules, most prominently in the automotive assembly industry. Procedures were developed for BMW in conjunction with SAP AG and now form part of the Industry Specific version of R/3 for the automotive industry. Additional SPS clients include General Motors and Daimler Chrysler. The company’s expertise in procurement systems and payments solutions enabled the development of MasterCard SmartLink with MasterCard International. To support the integration of MasterCard SmartLink, SPS is appointing Value Added Resellers from the Big Five consultancy companies and SAP specialist consultancies to assist MasterCard member banks and merchants. SPS is lead by managing director Roger Newby and Errol Finkelstein, chief executive officer, two pioneers in ERP systems implementation. Prior to joining SPS, Newby was a partner in Triple X Holdings (Pty) Ltd., where he specialized in implementing SAP R/3 systems in the automotive assembly industry. Finkelstein, a chartered accountant and founder of Dragon Mountain Investments, the holding company of SPS, commands extensive strategic and banking management expertise. Additional information about SPS International is available at www.p-cardsolutions.com. About MasterCard International More than 1.7 billion MasterCard(R), Cirrus(R) and Maestro(R) logos are present on credit, charge and debit cards in circulation today. An association comprised of more than 20,000 member financial institutions, MasterCard serves consumers and businesses, both large and small, in 210 countries and territories. MasterCard offers a wide range of payment solutions in the virtual and traditional worlds. MasterCard has more than 21 million acceptance locations. In 2000, gross dollar volume exceeded $857 billion. MasterCard can be reached at www.mastercard.com.