How To Guide X3 Bank Card Processing Sage Exchange

How To Guide X3 Bank Card Processing Sage Exchange Table of Contents Introduction... 2 Credit Card Parameters GESXA0... 3 Payment Types GESTPY... 6 Invoicing Method GESBPC... 6 Sales Order Processing - GESSOH... 7 Sage Exchange Credit Card Vault... 8 Card Authorization... 12 Authorization Markup %... 14 Authorization Step... 14 Auth on Add... 14 Manual Authorization Void... 14 Using existing Credit Cards... 15 Sales Order Changes... 15 Shipments GESSDH... 16 Partial shipments... 16 Invoicing GESSIH... 16 Credit Card Payments... 17 Bank Posting REMBAN / XCREMBAN... 18 Batch Settlement... 18 CC Billing Contact GESXC8... 19 Returns & Credits - GESSRH & GESSIH... 20 Miscellaneous Credits GESSIH... 23 Credits No Invoice nor return... 24 Miscellaneous Invoices GESSIH / GESBIC... 25 Credit Card Declines & Holds... 27 Accounts Receivable CC Payments... 28 Credit Card Transaction Inquiry - CONSXCL... 29 Reports... 29 Payment Card Authorizations XCCAUTH... 29 Card Payment Transactions XCCPAYREG... 30

Introduction Sage X3 now supports processing bank card transactions with the integration of Sage Exchange (SE). Recent changes in bank card data processing security standards call for all merchants who are storing or processing bank card data electronically to become PCI compliant. One requirement for compliance is that all software used for payment processing be PA-DSS certified. Sage Exchange has this certification. To use Sage Exchange, a customer must apply for and receive a merchant account from Sage Payment Solutions. See the Checklist-X3 Sage Exchange Implementation guide for further details. This document covers the set-up and processing of bank card transactions within Sage ERP X3 once a merchant account has been established. The process of entering an order (and card data), requesting approval and eventually capturing the sale through Sage Exchange is detailed below. Sales returns, miscellaneous credit & debit invoices and open accounts receivable payments may also be processed through the Sage Exchange / X3 interface. Warning: Sage ERP X3 only supports one Merchant ID per folder. A brief overview of the standard sales order process is shown below: Credit Card Sales Order Processing in Sage X3 Sales order is entered into X3 with Credit Card tender type assigned. User can select a previously entered CC, or enter new card data. * Authorization request is sent to Sage Exchange. Authorization approval is received from SE and the order s Hold Status is set to Released. On shipment and invoice post of the order, the authorization is captured in SE and payment recorded in X3. The current Batch of captured credit card transactions is settled by the merchant through Sage Exchange s secure website https://www.sagepayments.net. The Merchant bank s credit card is then credited with the sale. * Credit Card numbers are not stored in X3 directly, but in Sage Exchange s Vault in compliance with credit card security standards. 1) Merchant Places CC order in SAGE X3 2) Credit Card selected from SE Vault 3) Authorization Request processed by SE 4) Authorization Received in Sage X3 8) Batch is settled in SE and Merchant account credited 7) Capture of Authorization 6) Customer Invoice Posted in Sage X3 5) Items Shipped Sage Exchange is a legal trademark of Sage. October 2011 Sage Page 2 of 31

Credit Card Parameters GESXA0 The Addon Parameters function holds information used to interface with Sage Exchange to process credit card payments. On the admin menu, this is located under Parameters / Addon Parameters. Note: One warehouse must be noted as a default when defining these parameters. Warning: Sage ERP X3 only supports one Merchant ID per folder. Any setup changes made on the Sage Exchange tab for one warehouse will update the same setup to ALL warehouses. The second tab, titled Payments contains the values used to define the default payment type and to tie the payment type to a bank. Default Tender Type: This drop down sets a default value for the default type of remittances generally used. The user may override this value at time of order entry. Bank: Ties the various types of remittances to the bank, Payment Terms and the Payment Types. Note: The payment terms used to signal a credit card payment during sales order entry must have a payment type setting of Due Date. October 2011 Sage Page 3 of 31

The third tab of the Addon Parameters screen, titled Credit Card, defines the options used to control how the Credit Card transactions are processed. Credit Card Processor: Allows a choice of companies to process the credit card transaction. Authorized Days: An authorization typically lasts from 5 to 7 days depending on the bank. This value is used to initiate a new authorization request if the original authorization has aged past this number of calendar days. Minimum Credit Card Amount: The smallest amount that can be charged to a credit card. Authorization Step: An authorization may be requested at either sales order entry, or at time of shipment generation. If lead-times routinely extend past the authorized days limit, a Shipment setting may be appropriate. Auth on Add: If the authorization step is set to Shipments, then you may set this parameter to Yes in which case a $.01 authorization will be done against the card at order placement. Useful to ensure card validity prior to manufacture or shipment. Use of this feature may trigger fraud alerts depending on the issuer of the card. This option should be used with caution. Authorization Markup %: The value of the order is marked-up by this percentage when requesting an authorization. If invoicing elements such as Freight are added at shipment or invoicing, a markedup authorization amount which covers most of these charges may help ensure a successful capture of the final sales amount. CC Close Reason: A Close reason needs to be created and assigned in the credit card parameters. The reason should be setup under the Miscellaneous table 201. Pay On Invoice Validation: Two options exist to create the payment transaction. o Yes: indicates the delayed capture transaction will be processed at the time the invoice is validated and the transaction will create a payment transaction in X3. o No: the Payment button on the invoice must be used to create the payment in X3 and generate the Delayed Capture transaction. October 2011 Sage Page 4 of 31

The fourth tab, titled Sage Exchange defines the data used to integrate with Sage Exchange (SPS). Sage Exchange Application ID: Alphanumeric number associated with the Sage Exchange SPS application. Language: Language code associated with the Sage Exchange SPS application. X3 Language Code: Language code associated with the X3 application Description: Description of the X3 Language Code Java Bridge Outbound URL: URL for the Sage Exchange Virtual Payment Terminal Java Bridge IP: IP address for Java Bridge server component Java Bridge Port: Port set up for the Java Bridge in the console Merchant ID Merchant ID: The nine digit code associated with the Sage Exchange Merchant ID. This will be unique for each customer. Warning: Sage ERP X3 only supports a single Merchant ID. DBA Name: The database name for the Sage Exchange application VT_ID/M_ID: The nine digit code associated with the Virtual terminal Merchant ID. It is typically the same as the SPS Merchant ID User ID: The nine digit code associated with the Sage Exchange User Id. It is typically the same as the SPS Merchant ID M_Key Number: The alphanumeric code/password used for the Sage Exchange application. October 2011 Sage Page 5 of 31

Payment Types GESTPY All payment type transactions which reference either credit card receipt or credit card payment should not have the Bank Card Number checked on the input tab of the transaction on GESTPY. This field is not used by the Sage Exchange integration. Activating this field could result in compliance issues as entry of a card number within the GESPAY payment screen would be permitted. Invoicing Method GESBPC All Pay-by customers who may use credit card payments should have their invoicing method set to One / Shipment. October 2011 Sage Page 6 of 31

Sales Order Processing - GESSOH The sales order is entered in Sage X3 following the normal process. Prior to selecting the Create button to record the order, ensure the Tender Type is set to Credit Card. October 2011 Sage Page 7 of 31

Sage Exchange Credit Card Vault On creation of the sales order, Sage X3 checks for existing credit card information for the Pay-by customer. If none is found, the Sage Payments Billing Contact Screen will appear. Enter the Credit Card Name and address Information from the BP Pay-by of the sales order will be used to initially fill out the form but all the data can be changed if not correct. If Sage X3 contact information is available for the Pay-by, it will default into the name and address fields. Modify as necessary to match those of the credit card holder. Next, click Create to save this information in X3. Please note, if an email address is entered and your Sage Exchange merchant account is established to send email alerts to cardholders, every time an authorization is created for an order / shipment, an email will be sent to the cardholder. NOTE: For International credit cards where the customer s country does not require a zip code, simply supply a generic zip code such as 11111. It is best to use either five 1 s or five 9 s. In the State field, specify Outside the US and specify the customer s country in the Country field. October 2011 Sage Page 8 of 31

With the address information saved in X3, the next step is to collect the credit card number and expiration data. Click the New Card button to invoke your default internet browser and call Sage Exchange s credit card entry site: https://www.sageexchange.com/virtualpaymentterminal/frmvaultprocessing.aspx. Enter the cardholder s credit card number and expiration into this screen. October 2011 Sage Page 9 of 31

Please note, the credit card number and expiration date entered goes directly into Sage Exchange s Vault. This information is neither stored nor available to Sage ERP X3. Select Submit to submit the entry into the Sage Vault. The dialog box above appears indicating the credit card information has been saved. Select Close to exit from the browser and return to Sage X3. Control is now released back to the X3 Sage Payments Billing Contact Screen. The credit card information has been stored in the SE Vault and is re-usable the next time an order is placed by the cardholder. Click End to exit from the Sage X3 Billing Contact screen. October 2011 Sage Page 10 of 31

October 2011 Sage Page 11 of 31

Card Authorization The Credit Card selection screen next appears with the newly entered CC selected. Click Authorize/Select and the order amount along with referenced card* will be sent to Sage Exchange for authorization. If the credit card holder s bank approves the authorization, the message below will appear: An authorization code is also returned to X3 which is viewable, along with the authorization status and summary card information, on the Credit Card tab of the sales order. * Only the card token is sent from X3 to Sage Exchange. The actual card number is stored in the Sage Exchange Vault. October 2011 Sage Page 12 of 31

The Hold Status of the order in X3 is then set to Released. If, however, the authorization request is declined by the cardholder s bank, a message similar to the one below will appear. The order will be placed on CCDECLINE status, preventing allocation or shipment of the order. See section Credit Card Declines & Holds below for direction on handling declines. October 2011 Sage Page 13 of 31

Note: When a Sage Exchange account is in Test mode, certain order amounts will always be declined ($2, 4, 5, 16). Please see the BankcardTestingProcedures.pdf document for a complete list. Authorization Markup % If a value was entered in this parameter during setup, the requested authorization amount will include the result of the mark-up plus the actual order value. Authorization Step If the Authorization Step parameter is set to Shipment Generation in place of Order Entry, the card selected during order placement is merely attached to the order for use when authorization occurs during shipment of the order. No validation of the card entered occurs in this case, meaning that the authorization request sent when the shipment is created might result in a decline. Auth on Add If your business process calls for making authorizations during shipment generation, yet you would like some verification that the card entered for the order is at least valid, setting this parameter to Yes will continue to process the actual order value authorization at shipment. In addition, it will test the validity of the card by processing a $.01 authorization at order placement. If the card is invalid, a decline response will be received placing the order on CCDECLINE status. Otherwise, the order will be set to a released status. Once the order is shipped, a new authorization request will be sent to Sage Exchange for the current order value. Manual Authorization Void If there is a need to void an authorization against an unshipped sales order, you may do so by rightclicking the Authorized card shown on the Credit Card tab of the sales order. Select Void Authorization to remove the authorization and place the order on CCHOLD status. October 2011 Sage Page 14 of 31

Using existing Credit Cards Once credit card addresses and card information have been stored in Sage ERP X3 / Sage Exchange Vault, new orders placed for the same Pay-by customer may reference the card without rekeying of the address or card number. On click of Create for these new orders, the Credit Card selection screen appears allowing selection of an on file credit card. Click in the Selected column next to the credit card to be authorized followed by a click of the Authorized / Select button. Await the approval / decline response from Sage Exchange. As with new cards, an authorization will Release the order while a Decline keeps the order on Credit Card Decline status. From this same screen, you always have the option to click the Add Card button which will direct you to the CC Billing Contact screen for entering new card information. Sales Order Changes Any changes resulting in an increase in the order value above the authorization amount will automatically void the current authorization, and send a new authorization request to Sage Exchange.. (Assuming the Automatic Reauthorizations parameter is set to Yes) An approved authorization response from Sage Exchange keeps the order on Released status while declined requests will place the order on CCDECLINE status, preventing allocation or shipment of the order. A sales order deletion will result in a void of any outstanding authorizations for the order in Sage Exchange. October 2011 Sage Page 15 of 31

Shipments GESSDH Sage EPR X3 Credit Card V6 Sage Exchange Processing Prior to creating a shipment, X3 compares the current date with the authorization date. If the current date exceeds the order s authorization date plus the Authorized Days parameter setting, a check of the authorization will be done through Sage Exchange. If the authorization is no longer valid, a new one will be requested from Sage Exchange for the current order amount. If the Authorization Step parameter is set to Shipment Generation, an authorization request is always sent to Sage Exchange at shipment of the order. If the request is approved, the shipment will be created. If declined, no shipment will be created and the order will be placed on Credit Card Decline status. Partial shipments If a partial shipment is made on an order, no follow-up shipment may be processed until the first shipment s invoice has been posted in X3. Once the backorder shipment is created, a new authorization will be requested from Sage Exchange for the remaining balance of the order. If the authorization request is declined, the order will be placed on Credit Card Decline status. The current authorization information for the order / shipment is always viewable on the Credit Card tab of the shipment. Invoicing GESSIH The authorization number in effect at the time of shipment is used to capture the sale during post of the invoice in X3. Any quantity over-shipment or additional charges added during shipment or invoicing, such as Freight, will be included in the new capture amount sent to Sage Exchange. October 2011 Sage Page 16 of 31

If the current authorization has expired at the time of invoice post, a new authorization and forced capture are attempted concurrently. If the capture is successful, a log file will appear advising the journal created for the X3 posting as well as the automated payment. Journal creation CI1100034 Payment Creation C0111RECCC00022 A failed capture will result in a log file similar to the one below. Journal creation CI1100034 Unable to process Sage Exchange - Both Capture and Force Capture Failed CI1100034 Rollback following error in transaction If the capture fails for any reason, the invoice remains unposted in X3. In this case, terms of the invoice may need adjusted to on account or a separate debit invoice processed with a new credit card. If the Pay on Invoice Validation parameter is set to No, the capture attempt of the sale will occur during invoice Payment rather than at Post of the invoice. Credit Card Payments When the capture transaction occurs during Invoice Post, a corresponding payment record is automatically created in X3. An Entry Batch value will be assigned to the payment record if the invoice is validated through function FUNCFMINV Invoice Validation and the Payment parameter calls for one. This payment transaction has not yet been "Posted", so adjustments to it may be made if necessary. Any financial adjustments done at this point in X3 may require a manual balancing transaction in Sage Exchange. (See Sage Exchange documentation for details) October 2011 Sage Page 17 of 31

Bank Posting REMBAN / XCREMBAN Once the payment has been reviewed and any necessary adjustments have been made, it may be posted directly from the GESPAY screen; or bulk payment posting may be done through function REMBAN. This function may be run as a batch job if desired. It may also be run strictly for credit card payments by specifying your credit card payment transaction type. Below is an example of bank posting using the REMBAN function for all un-posted credit card payments. Batch Settlement The final step of the credit card process calls for settling the batch of payments within Sage Exchange through their Virtual Terminal web site - https://www.sagepayments.net/virtualterminal/. You will need your Merchant ID as well as a Sage Exchange assigned password to enter the site. Be aware that interchange rules state the transactions must be settled within 48 hours of invoice capture. If they are settled after that time period they will be downgraded and you will be charged a higher rate. Documentation on this process and all actions available within the Virtual Terminal is available through the VT website under Help > Users manuals. October 2011 Sage Page 18 of 31

Please note: If the Authorization Markup % option is employed, and an authorization is manually selected for settlement in the VT, it s Sub Total amount on the VT transaction must first be adjusted to match the final X3 sale amount. An option exists, however, to perform both the bank posting as well as batch settlement concurrently from within X3; bypassing the need to settle the open batch in the Virtual Terminal. This process may be done through X3 function XCREMBAN. The amounts shown compare the captured payments within Sage Exchange (Bank Amount) with the X3 un-posted credit card payment amount (X3 amount). The Counts shown total the number of captured transactions in Sage Exchange versus the number of un-posted CC payments in X3. If the OK button is clicked, and the Bank and X3 numbers do not match, a warning will be given. You may still override the warning if desired by clicking the Force Settle option. This will force settlement in Sage Exchange and payment posting in X3 based on the amounts shown. Otherwise, an adjustment to the payment amount in X3 or supplemental manual transaction in the VT may be required. Please note: Settlements may take place on a captured sale up through seven calendar days past the original authorization date. If the capture transaction in Sage Exchange is not settled within this time period, it expires and a manual sale transaction must be done within the Virtual Terminal. An alternate approach would be to process a debit invoice through in cases where the settlement deadline is passed. CC Billing Contact GESXC8 A review of all credit card addresses on file in X3 may be viewed through the CC Billing Contact function. Using the left-side Card Holders drawer permits selection of an address record for viewing. Changes to the address information may be made here followed by a click of the Save button. October 2011 Sage Page 19 of 31

Invalid card addresses may also be deleted through this function. Select the address record from the leftside Card Holders drawer followed by a click of the Delete button. To create a new credit card address, click the New icon. Enter in the Pay-by customer number as well as address information. Then, click the Create button. If you wish to add associated credit card information in the Sage Exchange vault, click the New Card button which will launch your default browser pointing to Sage Exchange s credit card entry site: https://www.sageexchange.com/virtualpaymentterminal/frmvaultprocessing.aspx See section Sage Exchange Credit Card Vault above for further direction on entry of credit cards into the Sage Exchange Vault. The CC Billing Contacts for a specific customer may also be viewed directly from GESSOH. Selecting the Address menu followed by the Sage Exchange Card Address drop-down will tunnel you to the CC Billing Contact screen for viewing or editing of existing card addresses, or adding new ones as described above. The CC Billing Contacts for a specific customer may also be viewed or added from GESBPC as well. Selecting the Functions menu followed by the CC Billing Contact drop-down will tunnel you to the CC Billing Contact screen. A link to this same function is also available on the Contacts tab of GESBPC if contacts are recorded for the customer. Returns & Credits - GESSRH & GESSIH If a sales return occurs on an order originally paid by credit card, the corresponding credit invoice issued may be posted back to the original card through Sage Exchange. Process the return through GESSRH, using the left-side Select Shipments drawer to highlight the shipment being returned after first keying in the Ship-To customer. If the shipment does not appear in the drawer, call down the Options Select Criteria window to recall a specific shipment for processing from the left-side drawer. October 2011 Sage Page 20 of 31

Modify the line, setting the Credit Memo flag to Yes. If the return amount varied from the original, defaulted shipment amount, change the Returned value to match the actual quantity returned. Next, click the Create button to create the Sales Return document. ** Please note, when processing returns involving credits back through Sage Exchange, sales returns must be processed on a shipment by shipment basis when multiple shipment returns are involved. The original debit invoice card authorization is displayed on the Credit Card tab. This authorization will be used to credit the Pay-by cardholder s card once the credit is entered into X3. (Note, the authorization amount initially displays the original debit invoice amount, and updates to the credit amount once fully processed in X3). Next, proceed to the GESSIH function (Sales > Invoices > Invoices from the ADMIN menu) selecting the Credit Memo transaction type. Click the New icon and enter in the Bill-To to be credited. From the leftside Return Selection drawer, click on the sales return created in the prior step. Adjust the price, if needed, and click the Create button. October 2011 Sage Page 21 of 31

The un-posted credit has now been created in X3 using the original shipment s credit card authorization. Click post to process the credit invoice in X3, as well as capture the credit amount back to the cardholder through Sage Exchange. October 2011 Sage Page 22 of 31

Miscellaneous Credits GESSIH Credits not involving an X3 processed sales return may also be issued to a Pay-by cardholder through Sage Exchange. Call up function GESSIH, selecting the Credit Memo transaction type. Click the New icon and enter in the Bill-To to be credited. From the left-side Select Invoices drawer, click on the sales invoice to be credited. Adjust the price, if needed, and click the Create button. The un-posted credit has now been created in X3 using the original invoice s credit card authorization. Click post to process the credit invoice in X3, as well as capture the credit amount back to the cardholder through Sage Exchange. October 2011 Sage Page 23 of 31

Credits No Invoice nor return Credits not involving an X3 processed sales return, nor referencing an X3 debit invoice, may also be issued to a Pay-by cardholder through Sage Exchange. Call up function GESSIH, selecting the Credit Memo transaction type. Click the New icon and enter in the Bill-To to be credited along with line detail information. Be sure to set the Invoicing Terms to your CC payment type. On creation of the invoice, you will be prompted to select a credit card for the credit. October 2011 Sage Page 24 of 31

Click the Post button to process the credit invoice in X3, as well as capture the credit amount back to the cardholder through Sage Exchange. Miscellaneous Invoices GESSIH / GESBIC Debit invoices may be created outside the sales order function through either GESSIH (Sales Invoices) or GESBIC (Customer BP Invoices) and charged to a Pay-by cardholder through Sage Exchange. Call up function GESSIH, selecting the standard invoice transaction type. Click the New icon and enter in the Bill-To to be debited along with line detail information. Be sure to set the Invoicing Terms to your CC payment type. Click the Create button, and the CC Selection screen will appear. Select the card to authorize followed by the Authorize/Select button. A successful authorization response: October 2011 Sage Page 25 of 31

If the authorization request is declined, no posting of the miscellaneous invoice will be permitted. Click the Post button to process the debit invoice in X3, as well as capture the sale amount through Sage Exchange. The GESBIC function (Customer BP Invoices) is similar in process to GESSIH, though with fewer item details and having no impact inventory wise. Click the New icon followed by header details including the BP customer and amount of the invoice. Be sure to enter your CC payment terms as well. Next, click the Lines tab and enter in the invoice details. October 2011 Sage Page 26 of 31

Click the Create button, and the CC Selection screen will appear. Select the card to authorize followed by the Authorize/Select button. If the authorization request is declined, no posting of the miscellaneous invoice will be permitted. Click the Post button to process the debit invoice in X3, as well as capture the sale amount through Sage Exchange. Credit Card Declines & Holds If a sales order, debit or credit invoice are entered but not authorized immediately after entry, their status will remain on CCHOLD in the case of sales orders, or un-postable in the case of invoices. In the case of authorization declines, the same holds true. Sales orders in this case will have their status set to CCDECLINE. If you wish to attempt a new authorization request in any of these cases, click the Select Card from the Credit Card tab of the applicable function, and the CC selection screen will appear to initiate the new authorization request. October 2011 Sage Page 27 of 31

Accounts Receivable CC Payments Sage EPR X3 Credit Card V6 Sage Exchange Processing Open account invoices may be paid off in total or in part through a credit card payment using X3 and Sage Exchange. Call up the GESPAY function, selecting the Credit Card Receipt transaction type. Next, click the New icon and enter in the BP customer and total amount of the payment. The left-side Open Items drawer may be used to assist with selection of the invoice(s) to be included on the credit card payment. Please note: only open invoices with non-cc payment terms should be selected for inclusion on the payment record. If a CC termed invoice is selected, no authorization request will be permitted as payment for it might already have been processed under a different authorization. Once the invoice(s) have been selected, click the Create button to have a payment record assigned. Next, click the Credit Card tab followed by the Select Card icon. The Credit Card Selection screen will appear for selection of the card to authorize. If the authorization request is approved, the message below will appear. You may then Post the payment, which will initiate a capture of the payment in Sage Exchange, as well as record the payment journal in X3. If the capture is successful, a log file will appear advising the journal created for the X3 posting as well as the automated payment. Log file: Payment C0111RECCC00035 : RECCC, DM3970, 01/07/11, BNK1, 343 USD Journal creation REC1100007 If the authorization request is declined for any reason, the AR payment cannot be posted in X3 nor captured in Sage Exchange. The payment amount and status of the authorization are displayed on the credit card tab of the payment screen. October 2011 Sage Page 28 of 31

Credit Card Transaction Inquiry - CONSXCL Review of both authorization requests and responses from Sage Exchange may be viewed through the CC transaction log. The selection criterion defaults simply to the current date. A search run on this parameter will return all responses from Sage Exchange for the day. A specific sales order number or date may be entered to filter the results as needed. See the screen shot above for a list of all available search criteria. Reports Payment Card Authorizations XCCAUTH This report summarizes all credit card authorizations per the selected date range, detailing the authorization status (Authorized, Captured, Void, Rejected) as well as the current document of the authorization( Order, Invoice, Shipment) Sample output: October 2011 Sage Page 29 of 31

Card Payment Transactions XCCPAYREG This report summarizes all credit card payments entered within the selected date range, detailing the X3 invoice & payment numbers, Sage Exchange authorization ID along with payment amounts and posted status (Entered = un-posted, In the Bank = posted X3 payment) Sample output: October 2011 Sage Page 30 of 31

October 2011 Sage Page 31 of 31