AC815 - Loans Management

AC815 Loans Management AC815

Версия 46D 16.09.2002

AC815 Loans Management 0-1 Copyright 0-2 Финансовый менеджмент ....................................................................................................................................................................................0-4

Course Prerequisites................................................................................................................................................................................................0-5

Target Group ...........................................................................................................................................................................................................0-6

Course Overview 1-1 Course Goals ...........................................................................................................................................................................................................1-2

Course Objectives ...................................................................................................................................................................................................1-3

Course Content........................................................................................................................................................................................................1-4

Course Overview Diagram .....................................................................................................................................................................................1-5

Main Business Scenario ..........................................................................................................................................................................................1-6

Loans Management Within SAP Treasury 2-1 Loans Management Within SAP Treasury: Unit Objectives .................................................................................................................................2-2


Loans Management within SAP Treasury: Business Scenario ..............................................................................................................................2-4

SAP Treasury ..........................................................................................................................................................................................................2-5

Selection of Financial Instruments .........................................................................................................................................................................2-6

Short-Term Financial Instruments ..........................................................................................................................................................................2-7

Medium - Long Term Financial Instruments..........................................................................................................................................................2-8

Loan Forms Supported............................................................................................................................................................................................2-9

Overview of the Process for New Business - Mortgage Loans............................................................................................................................2-10

Possible Procedures for Loan Processing .............................................................................................................................................................2-11

Technical Overview: Loan Processing .................................................................................................................................................................2-12

Loans Management- Financial Accounting..........................................................................................................................................................2-13

Integration in FI ....................................................................................................................................................................................................2-14

Datafeed Architecture ...........................................................................................................................................................................................2-15

Role - Based Menus ..............................................................................................................................................................................................2-16

Loans Management Within SAP Treasury: Unit Summary.................................................................................................................................2-17

Process Flow for Loans Given 3-1 Process Flow in Loans Management: Unit Objectives...........................................................................................................................................3-2


Process Flow for Loans Given: Business Scenario ................................................................................................................................................3-4

General Posting Options I .......................................................................................................................................................................................3-5

General Posting Options II......................................................................................................................................................................................3-6

General Posting Options III ....................................................................................................................................................................................3-7

General Process Flow..............................................................................................................................................................................................3-8

Example: Process Flow for a Loan Posted to a Customer Account.......................................................................................................................3-9

Contract - 4 Ways of Entering Contracts in the SAP System ..............................................................................................................................3-10

Contract - Function Overview ..............................................................................................................................................................................3-11

Contract - Initial Screen ........................................................................................................................................................................................3-12

Contract - Basic Data ............................................................................................................................................................................................3-13

Contract - Condition Header .................................................................................................................................................................................3-14

Contract - Condition Items....................................................................................................................................................................................3-15

Contract - Cash Flow ............................................................................................................................................................................................3-16

Contract: Disbursement ........................................................................................................................................................................................3-17

Disburse Contract: Incidental Costs .....................................................................................................................................................................3-18

Saving/Posting Disbursements .............................................................................................................................................................................3-19

Disburse Contract: Posting ...................................................................................................................................................................................3-20

Integration in FI ....................................................................................................................................................................................................3-21

Planned Record -> Actual Record ......................................................................................................................................................................3-22

Automatic ..............................................................................................................................................................................................................3-23

Disbursement Payment (Bank Transfer): Posting ................................................................................................................................................3-24

Automatic Posting: Post Planned Records ...........................................................................................................................................................3-25

Posting Planned Records Due...............................................................................................................................................................................3-26

Payment Options ...................................................................................................................................................................................................3-27

Incoming Payment ................................................................................................................................................................................................3-28

Process Flow for Loans Given: Unit Summary....................................................................................................................................................3-29

Process Flow for Loans Given: Exercises ............................................................................................................................................................3-30

Process Flow for Loans Given: Solutions ............................................................................................................................................................3-35

Loan Contract 4-1 Loan Contract: Unit Objectives ..............................................................................................................................................................................4-2


Loan Contract: Business Scenario ..........................................................................................................................................................................4-4

Customizing Levels.................................................................................................................................................................................................4-5

Enterprise Structure Settings...................................................................................................................................................................................4-6

Financial Accounting Settings ................................................................................................................................................................................4-7

Treasury Settings (1)...............................................................................................................................................................................................4-8

Treasury Settings (2)...............................................................................................................................................................................................4-9

Mortgage Loan - Processing Seq. / Contract ........................................................................................................................................................4-10

Create Contract......................................................................................................................................................................................................4-11

Loan - Initial Screen..............................................................................................................................................................................................4-12

Customizing Structure: Loans...............................................................................................................................................................................4-13

Customizing: Define Product Types.....................................................................................................................................................................4-14

Loan Number ........................................................................................................................................................................................................4-15

Customizing: Number Range for Loan Number ..................................................................................................................................................4-16

Customizing: Product Types.................................................................................................................................................................................4-17

Customizing: Product Types / Details (1) ............................................................................................................................................................4-18

Customizing: Product Types / Details (2) ............................................................................................................................................................4-19

Customizing: Status Definitions ...........................................................................................................................................................................4-20

Customizing: Define Status - Field Selection.......................................................................................................................................................4-21

Customizing: Business Partners............................................................................................................................................................................4-22

Business Partner Data - Overview ........................................................................................................................................................................4-23

Basic Functions: Customizing for Business Partners (1) .....................................................................................................................................4-24

Basic Functions: Customizing for Business Partners (2) .....................................................................................................................................4-25

Business Partners ..................................................................................................................................................................................................4-26

Loans: Customizing for Business Partners (1) .....................................................................................................................................................4-27

Business Partners: Roles .......................................................................................................................................................................................4-28

Creating a Partner: Application Area....................................................................................................................................................................4-29

Loans: Customizing for Business Partners (2) .....................................................................................................................................................4-30

Loans: Business Partner Overview.......................................................................................................................................................................4-31

Create Contract - Basic Data.................................................................................................................................................................................4-32

Customizing: Basic Data (1).................................................................................................................................................................................4-33

Customizing: Basic Data (2).................................................................................................................................................................................4-34

Basic Data: Planned/Actual Principle...................................................................................................................................................................4-35

Basic Data: Clerks.................................................................................................................................................................................................4-36

Basic Data: Capital Amounts................................................................................................................................................................................4-37

Condition Structure ...............................................................................................................................................................................................4-38

Condition Header / Condition Items.....................................................................................................................................................................4-39

Contract - Condition Header .................................................................................................................................................................................4-40

Contract: Conditions .............................................................................................................................................................................................4-41

Contract - Condition Items....................................................................................................................................................................................4-42

Condition Items - Fields........................................................................................................................................................................................4-43

Condition Structure: Frequency (1) ......................................................................................................................................................................4-44

Condition Structure: Frequency (2) ......................................................................................................................................................................4-45

Condition Structure: Condition Types..................................................................................................................................................................4-46

Condition Types ....................................................................................................................................................................................................4-47

Condition Form .....................................................................................................................................................................................................4-48

Condition Items - Detail Screen............................................................................................................................................................................4-49

Condition Items - Detail Screen............................................................................................................................................................................4-50

Planned Records....................................................................................................................................................................................................4-51

Loans - Cash Flow ................................................................................................................................................................................................4-52

Effective Calculation of Interest ...........................................................................................................................................................................4-53

Payment Schedule .................................................................................................................................................................................................4-54

Conditions: Payment Data ....................................................................................................................................................................................4-55


Customizing: Define Flow Types (1) ...................................................................................................................................................................4-57

Customizing: Define Flow Types (2) ...................................................................................................................................................................4-58

Assign Flow Types to Flow Category ..................................................................................................................................................................4-59


Customizing: Conditions ......................................................................................................................................................................................4-61

Customizing: Condition Types .............................................................................................................................................................................4-62

Customizing: Condition Groups ...........................................................................................................................................................................4-63

Customizing: Condition Assignment....................................................................................................................................................................4-64

Customizing: Assign Conditions -> Details .........................................................................................................................................................4-65

Conditions: Summary ...........................................................................................................................................................................................4-66

Customizing: Payment Form ................................................................................................................................................................................4-67

New Business Table..............................................................................................................................................................................................4-68

Create Loan: Initial Screen ...................................................................................................................................................................................4-69

Contract - Correspondence ...................................................................................................................................................................................4-70

Contract - Generate Correspondence....................................................................................................................................................................4-71

Customizing: Correspondence - General..............................................................................................................................................................4-72

Customizing: Correspondence - External Flow Types.........................................................................................................................................4-73

Loan Contract: Unit Summary..............................................................................................................................................................................4-74

Loan Contract Exercises .......................................................................................................................................................................................4-75

Loan Contract Solutions .......................................................................................................................................................................................4-78

Disbursement 5-1 Disbursement: Unit Objectives ...............................................................................................................................................................................5-2


Disbursement: Business Scenario...........................................................................................................................................................................5-4

Mortgage Loans: Processing Seq./Contract............................................................................................................................................................5-5

Disburse Contract: Settlement ................................................................................................................................................................................5-6

Disburse Contract: Incidental Costs/Withholding..................................................................................................................................................5-7

Disburse Contract: Drawings..................................................................................................................................................................................5-8

Data of Person Authorized to Draw........................................................................................................................................................................5-9

Saving/Posting Disbursements .............................................................................................................................................................................5-10

Integration with R/3 FI/TR Cash Management ....................................................................................................................................................5-11

Integration: Cash Management Disbursement .....................................................................................................................................................5-12

Integration with Treasury Cash Management.......................................................................................................................................................5-13

Disburse Contract: Posting Log............................................................................................................................................................................5-14

Integration: Cash Management - Overview (1) ....................................................................................................................................................5-15

Integration: Cash Management - Overview (2) ....................................................................................................................................................5-16

Customizing: Integration with FI..........................................................................................................................................................................5-17

FI Posting Keys for Loans ....................................................................................................................................................................................5-18

Accounting Customizing: Overview ....................................................................................................................................................................5-19

Customizing: Product Types and Accounting ......................................................................................................................................................5-20

Customizing: Status and Accounting....................................................................................................................................................................5-21

Assign Flow Types to Condition Groups for Each Application ..........................................................................................................................5-22

Disbursement: Offsetting Flow.............................................................................................................................................................................5-23

Disbursement: Flows for Drawings ......................................................................................................................................................................5-24

Customizing: Conditions and Accounting............................................................................................................................................................5-25

Flow Types and Accounting .................................................................................................................................................................................5-26

Posting Loans: Overview......................................................................................................................................................................................5-27

Posting Loans Given and Taken ...........................................................................................................................................................................5-28

Customizing: Account Assignment Reference/Account Determination..............................................................................................................5-29

Account Assignment Reference............................................................................................................................................................................5-30

Account Determination: Posting Specifications (1) .............................................................................................................................................5-31

Account Determination: Posting Specifications (2) .............................................................................................................................................5-32

Account Determination: (Account) Symbols .......................................................................................................................................................5-33

Account Determination: Account Assignment.....................................................................................................................................................5-34

Postings: Account Determination .........................................................................................................................................................................5-35

Determination of Account Assignment Reference - Overview............................................................................................................................5-36

Determination of Account Assignment Reference: Characteristics.....................................................................................................................5-37

Determination of Account Assignment Reference: Allocation............................................................................................................................5-38

Link to Customer Accounts ..................................................................................................................................................................................5-39

Posting via Customer Accounts ............................................................................................................................................................................5-40

Posting to Customer Accounts: Business Partner.................................................................................................................................................5-41

Customizing: Disbursement Plausibility Checks .................................................................................................................................................5-42

Data of Person Authorized to Draw......................................................................................................................................................................5-43

Payments to Third Parties .....................................................................................................................................................................................5-44

Customizing: Payments to Third Parties ..............................................................................................................................................................5-45

Customizing: Integration With TR Cash Management ........................................................................................................................................5-46

Integration: Cash Management - Loans I .............................................................................................................................................................5-47

Integration with Cash Management - Loans II .....................................................................................................................................................5-48

Postings: Disbursement to Borrower ....................................................................................................................................................................5-49

Planned Record -> Actual Record ......................................................................................................................................................................5-50

Automatic Payments: Payment Program ..............................................................................................................................................................5-51

Postings: Payment Program for Disbursement .....................................................................................................................................................5-52

Disbursement: Unit Summary ..............................................................................................................................................................................5-53

Disbursement Exercises ........................................................................................................................................................................................5-54

Disbursement Solutions ........................................................................................................................................................................................5-55

Payments Due 6-1 Payments Due: Unit Objectives ..............................................................................................................................................................................6-2


Payments Due: Business Scenario..........................................................................................................................................................................6-4

Mortgage Loans - Processing Seq./Contract ..........................................................................................................................................................6-5

Example Business Process: Debit Position.............................................................................................................................................................6-6

Debit Position: Mass Processing <-> Per Contract ................................................................................................................................................6-7

Posting Planned Records - General Description.....................................................................................................................................................6-8

Automatic Debit Position Run - Tasks ...................................................................................................................................................................6-9

Preparation for the Debit Position Run: Update Planned Records.......................................................................................................................6-10

Automatic Debit Position Run: Post Planned Records.........................................................................................................................................6-11

Automatic Debit Position Run..............................................................................................................................................................................6-12

Postings: Automatic Debit Position......................................................................................................................................................................6-13

Accounting - Evaluations I ...................................................................................................................................................................................6-14

Example Business Process: Incoming Payment ...................................................................................................................................................6-15

Sources of Incoming Payments for Loans ............................................................................................................................................................6-16

Payment Options: Bank Statement .......................................................................................................................................................................6-17

Debit Memo Procedure .........................................................................................................................................................................................6-18

Automatic Payments: Payment Program ..............................................................................................................................................................6-19

Incoming Payments by Direct Debit.....................................................................................................................................................................6-20

Bank Statement .....................................................................................................................................................................................................6-21

Incoming Payment Distribution: Process .............................................................................................................................................................6-22

Incoming Payment Distribution: Level ................................................................................................................................................................6-23

Incoming Payment Distribution: Overview..........................................................................................................................................................6-24

Assignment of Incoming Payments ......................................................................................................................................................................6-25

Incoming Transfer: Example of a Manual Bank Statement .................................................................................................................................6-26

Examples of Incoming Payment Processing.........................................................................................................................................................6-27

Processing Incoming Payments (Case 1)..............................................................................................................................................................6-28

Processing Manual Bank Statements (Case 1) .....................................................................................................................................................6-29

Entering the Items (Case 1)...................................................................................................................................................................................6-30

Incoming Payments by Bank Transfer (1)............................................................................................................................................................6-31

Customizing: Manual Bank Statement .................................................................................................................................................................6-32

Processing Incoming Payments (Case 2)..............................................................................................................................................................6-33

Processing Manual Bank Statements (Case 2) .....................................................................................................................................................6-34

Entering the Items (Case 2)...................................................................................................................................................................................6-35

Incoming Payments by Bank Transfer (2)............................................................................................................................................................6-36

Customizing: Incoming Payment Distribution .....................................................................................................................................................6-37

Incoming Payment I. .............................................................................................................................................................................................6-38

Incoming Payment II.............................................................................................................................................................................................6-39

Incoming Payment Postprocessing .......................................................................................................................................................................6-40

Processing Incoming Payments - Case 2 ..............................................................................................................................................................6-41

IP Postprocessing - Customer Accounts...............................................................................................................................................................6-42

Incoming Payment Postprocessing: Example.......................................................................................................................................................6-43

Customizing: Flow Types for Incoming Payments ..............................................................................................................................................6-44

Offsetting Flows....................................................................................................................................................................................................6-45

Customizing: IP Postprocessing ...........................................................................................................................................................................6-46

Accounting - Evaluations II ..................................................................................................................................................................................6-47

Evaluations: Loan Account Statement..................................................................................................................................................................6-48

Debit Position: Unit Summary..............................................................................................................................................................................6-49

Open Items ............................................................................................................................................................................................................6-50

Interest on Arrears: Overview...............................................................................................................................................................................6-51

Overdue Items: Determination of Interest on Arrears ..........................................................................................................................................6-52

Posting Interest on Arrears....................................................................................................................................................................................6-53

Dunning: Overview...............................................................................................................................................................................................6-54

Influencing Factors for Dunning...........................................................................................................................................................................6-55

Dunning: Terms ....................................................................................................................................................................................................6-56

Loan: Business Partner Overview.........................................................................................................................................................................6-57

Posting to Customer Accounts: Business Partner.................................................................................................................................................6-58

Contract - Correspondence ...................................................................................................................................................................................6-59

Dunning Run .........................................................................................................................................................................................................6-60

Customizing: Financial Accounting Dunning ......................................................................................................................................................6-61

Customizing: Dunning - Loans (1) .......................................................................................................................................................................6-62



Open Items: Waiver/Write-Off .............................................................................................................................................................................6-65

Open items: Posting ..............................................................................................................................................................................................6-66

Customizing: Waiver/Write-Off Debit Position...................................................................................................................................................6-67

Payments Due: Unit Summary .............................................................................................................................................................................6-68

Payments due Exercises ........................................................................................................................................................................................6-69

Payments Due Solutions .......................................................................................................................................................................................6-75

Closing Operations 7-1 Closing Operation: Unit Objectives........................................................................................................................................................................7-2


Closing Operations: Business Scenario ..................................................................................................................................................................7-4


Accruals/Deferrals: Overview ................................................................................................................................................................................7-6

Accruals/Deferrals: Procedures/Methods ...............................................................................................................................................................7-7

Accruals/Deferrals: Reset Procedure ......................................................................................................................................................................7-8

Accruals/Deferrals: Execute ...................................................................................................................................................................................7-9

Customizing: Accruals/Deferrals I .......................................................................................................................................................................7-10

Customizing: Accruals/Deferrals II ......................................................................................................................................................................7-11

Valuation: Balance Sheet Valuation .....................................................................................................................................................................7-12

Balance Sheet Valuation: Initial Screen ...............................................................................................................................................................7-13

Balance Sheet Valuation: Logs.............................................................................................................................................................................7-14

Valuation: Defining Principles .............................................................................................................................................................................7-15

Valuation: Write-Off/Write-Up Options ..............................................................................................................................................................7-16

Valuation: Example of the One-Step Principle ....................................................................................................................................................7-17

Summarization/Reorganization: Overview ..........................................................................................................................................................7-18

Summarization: Carryforward Records................................................................................................................................................................7-19

Summarization: Call Types...................................................................................................................................................................................7-20

Information System: Overview.............................................................................................................................................................................7-21

Information System: Loans...................................................................................................................................................................................7-22

Drilldown Reporting Principle..............................................................................................................................................................................7-23

Drilldown Reporting Functions ............................................................................................................................................................................7-24

Multidimensional Dynamic Drilldown Reporting................................................................................................................................................7-25

Drilldown Reporting Architecture ........................................................................................................................................................................7-26

Closing Operations: Unit Summary......................................................................................................................................................................7-27

Special Cases 8-1 Special Cases: Unit Objectives ...............................................................................................................................................................................8-2


Special Cases: Business Scenario ...........................................................................................................................................................................8-4


Loans - Cash Flow ..................................................................................................................................................................................................8-6

Cash Flow: Manual Changes ..................................................................................................................................................................................8-7

Cash Flow: Executing Changes ..............................................................................................................................................................................8-8

Loans - Cash Flow: Display Variants .....................................................................................................................................................................8-9

Business Operations for Contracts........................................................................................................................................................................8-10

Business Operation: Process .................................................................................................................................................................................8-11

Types of Business Operations...............................................................................................................................................................................8-12

Business Operation Charges: Example.................................................................................................................................................................8-13

Business Operation: Customizing.........................................................................................................................................................................8-14

Posting Individual Records ...................................................................................................................................................................................8-15

Transfer Postings: Overview.................................................................................................................................................................................8-16

Balance Sheet Transfer .........................................................................................................................................................................................8-17

Capital Transfer: Grouping and Splitting Contracts.............................................................................................................................................8-18

Reversal .................................................................................................................................................................................................................8-19

Reversing Individual Operations ..........................................................................................................................................................................8-20

Reversal: General Customizing I ..........................................................................................................................................................................8-21

Reversal: General Customizing I ..........................................................................................................................................................................8-22

Reversal: Customizing for Individual Operations ................................................................................................................................................8-23

Special Cases: Unit Objectives .............................................................................................................................................................................8-24

Special CasesExercises .........................................................................................................................................................................................8-25

Special cases Solutions ........................................................................................................................................................................................8-27

Rollover 9-1 Rollover: Unit Objectives .......................................................................................................................................................................................9-2


Rollover: Business Scenario ...................................................................................................................................................................................9-4


Loans: Rollover.......................................................................................................................................................................................................9-6

Loans: Changing Contracts.....................................................................................................................................................................................9-7

Rollover: General ....................................................................................................................................................................................................9-8

Rollover: Central Terms .........................................................................................................................................................................................9-9

Rollover - Overview..............................................................................................................................................................................................9-10

Rollover: File Structure.........................................................................................................................................................................................9-11

Rollover: Creating Main Files ..............................................................................................................................................................................9-12

Rollover: Creating Files ........................................................................................................................................................................................9-13

Rollover: Filling Files ...........................................................................................................................................................................................9-14

Rollover: Creating Tables I...................................................................................................................................................................................9-15

Rollover: Creating Tables II .................................................................................................................................................................................9-16

Rollover: Variants .................................................................................................................................................................................................9-17

Variants: Tolerance Limits - Examples ................................................................................................................................................................9-18

Rollover: Modification(s) .....................................................................................................................................................................................9-19

Rollover: Processing Options ...............................................................................................................................................................................9-20

Rollover: Register Overview I ..............................................................................................................................................................................9-21

Rollover: Selecting the Editing Functions............................................................................................................................................................9-22

Rollover: Creating Contract Offers.......................................................................................................................................................................9-23

Rollover: Register Overview II.............................................................................................................................................................................9-24

Rollover: Process Overview .................................................................................................................................................................................9-25

Rollover: Evaluations............................................................................................................................................................................................9-26

Customizing: Rollover ..........................................................................................................................................................................................9-27

Customizing: Define Activity Type......................................................................................................................................................................9-28

Customizing: Define Logical Fields .....................................................................................................................................................................9-29

Customizing: Define Register...............................................................................................................................................................................9-30

Customizing: Editing Functions I .........................................................................................................................................................................9-31

Customizing: Editing Functions II........................................................................................................................................................................9-32

Customizing: Assign Functions to Register .........................................................................................................................................................9-33

Customizing: Variant-Relevant Condition Types ................................................................................................................................................9-34

Customizing: Rollover - Word Processing ...........................................................................................................................................................9-35

Process Management: Overview ..........................................................................................................................................................................9-36

Process Management: Customizing......................................................................................................................................................................9-37

Rollover/Process Management: Number Ranges .................................................................................................................................................9-38

Rollover: Unit Summary.......................................................................................................................................................................................9-39

Prolongation Exercises..........................................................................................................................................................................................9-40

Rollover Solutions.................................................................................................................................................................................................9-43

Complete Process Including Master Data 10-1 Complete Process Including Master Data: Unit Objectives .................................................................................................................................10-2

Course Overview Diagram ...................................................................................................................................................................................10-3

Complete Process Including Master Data: Business Scenario.............................................................................................................................10-4

Overview of the Process for New Business - Mortgage Loans............................................................................................................................10-5

Possible Procedures in Loans Management .........................................................................................................................................................10-6

Mortgage Loans - Processing Seq./Contract ........................................................................................................................................................10-7

Master Data - Overview........................................................................................................................................................................................10-8

Master Data: Context ............................................................................................................................................................................................10-9

Master Data - Partner ..........................................................................................................................................................................................10-10

Loans - Initial Screen ..........................................................................................................................................................................................10-11

Business Partner ..................................................................................................................................................................................................10-12

Master Data - Credit Standing Calculation.........................................................................................................................................................10-13

Credit Standing Calculation - Business Partner .................................................................................................................................................10-14

Creating Credit Standing Calculations ...............................................................................................................................................................10-15

Customizing: Credit Standing Calculation .........................................................................................................................................................10-16

Master Data - Objects .........................................................................................................................................................................................10-17

Master Data - Procedure .....................................................................................................................................................................................10-18

Creating Objects..................................................................................................................................................................................................10-19

Object - Loan.......................................................................................................................................................................................................10-20

Object - Data .......................................................................................................................................................................................................10-21

Object - Real Estate Register ..............................................................................................................................................................................10-22

Object - Section III..............................................................................................................................................................................................10-23

Encumbrances .....................................................................................................................................................................................................10-24

Loans: Object - Encumbrance.............................................................................................................................................................................10-25

Creating Encumbrances ......................................................................................................................................................................................10-26

Customizing: Object ...........................................................................................................................................................................................10-27

Master Data - Collateral Value Calculation........................................................................................................................................................10-28

Collateral Value Calculation - Procedure ...........................................................................................................................................................10-29

Collateral Value Calculation Long Version - Overview ....................................................................................................................................10-30

Collateral Value - Details....................................................................................................................................................................................10-31

Collateral Value: Building Value .......................................................................................................................................................................10-32

Collateral Value: Building Parts .........................................................................................................................................................................10-33

Collateral Value: Land Value .............................................................................................................................................................................10-34

Collateral Value: Revenue Value .......................................................................................................................................................................10-35

Collateral Value: Revenue Value Building Parts ...............................................................................................................................................10-36

Collateral Value: Proposal Basis ........................................................................................................................................................................10-37

Customizing: Collateral Value Calculation ........................................................................................................................................................10-38

Customizing: Collateral Value Calculation Forms.............................................................................................................................................10-39

Master Data - Collateral ......................................................................................................................................................................................10-40


Collateral .............................................................................................................................................................................................................10-42

Collateral - Data ..................................................................................................................................................................................................10-43

Create Collateral .................................................................................................................................................................................................10-44

Customizing: Collateral ......................................................................................................................................................................................10-45

Customizing: Collateral Types ...........................................................................................................................................................................10-46

Master Data - Filed Documents ..........................................................................................................................................................................10-47

Master Data - File Procedure ..............................................................................................................................................................................10-48


File: Create File: Basic Data ...............................................................................................................................................................................10-50

File: Checklist .....................................................................................................................................................................................................10-51

File: Supplement Checklist .................................................................................................................................................................................10-52

File: Document Overview...................................................................................................................................................................................10-53

Customizing: Filed Documents ..........................................................................................................................................................................10-54

Customizing: Document Types ..........................................................................................................................................................................10-55

Customizing: Document Groups ........................................................................................................................................................................10-56

Customizing: Assign Document Types ..............................................................................................................................................................10-57

Customizing: Status - Document Groups ...........................................................................................................................................................10-58

Optical Archiving of Correspondence ................................................................................................................................................................10-59

Customizing: Optical Archiving.........................................................................................................................................................................10-60

Master Data - New Business Table.....................................................................................................................................................................10-61

New Business Table............................................................................................................................................................................................10-62

Customizing: Condition Tables ..........................................................................................................................................................................10-63

Mortgage Loans - Processing Seq./Contract ......................................................................................................................................................10-64

Interested Party: Function Overview ..................................................................................................................................................................10-65

Interested Party....................................................................................................................................................................................................10-66

Application/Offer/Contract - Function Overview ..............................................................................................................................................10-67

Application: Function Overview ........................................................................................................................................................................10-68

Create Loan: Initial Screen .................................................................................................................................................................................10-69

Loans - Initial Screen ..........................................................................................................................................................................................10-70

Contract - Basic Data ..........................................................................................................................................................................................10-71

Offer: Functions Overview .................................................................................................................................................................................10-72

Offer Proposals ...................................................................................................................................................................................................10-73

Offer - Basic Data ...............................................................................................................................................................................................10-74

Configuring Conditions ......................................................................................................................................................................................10-75

Waive Contract Offer..........................................................................................................................................................................................10-76

Full Waiver..........................................................................................................................................................................................................10-77

Partial Waiver......................................................................................................................................................................................................10-78

Contract Offer/Contract - Functions Overview ..................................................................................................................................................10-79

Customizing Structure: Loans.............................................................................................................................................................................10-80

Customizing: Status Definitions .........................................................................................................................................................................10-81

Customizing: Status Transfers ............................................................................................................................................................................10-82

Contract- 5 Ways to Enter Contracts in the SAP System...................................................................................................................................10-83

Application: Decision-Making ...........................................................................................................................................................................10-84

Decision-Making - Overview .............................................................................................................................................................................10-85

Decision-Making.................................................................................................................................................................................................10-86

Offer Creation - Options .....................................................................................................................................................................................10-87

Release in Loans .................................................................................................................................................................................................10-88

Release: SAP Business Workplace.....................................................................................................................................................................10-89

Overview of Workitems Loan ............................................................................................................................................................................10-90

Result of Complete Release ................................................................................................................................................................................10-91

Customizing: Release..........................................................................................................................................................................................10-92

Release: Object....................................................................................................................................................................................................10-93

Release: Names ...................................................................................................................................................................................................10-94

Release: Parameters ............................................................................................................................................................................................10-95

Portfolio: Loans to Partner..................................................................................................................................................................................10-96

Information System: Portfolio - Evaluations......................................................................................................................................................10-97

Loans: Customizing for Number Ranges ...........................................................................................................................................................10-98

References ...........................................................................................................................................................................................................10-99

Complete Process Including Master Data: Unit Summary...............................................................................................................................10-100

Exercises ...........................................................................................................................................................................................................10-101

Solutions............................................................................................................................................................................................................10-109

Contract Currency Changeover 11-1 Contract Currency Changeover: Unit Objectives.................................................................................................................................................11-2

Course Overview Diagram ...................................................................................................................................................................................11-3

Contract Currency Changeover: Business Scenario.............................................................................................................................................11-4

Contract Currency Changeover: General Information .........................................................................................................................................11-5

Changeover Options I ...........................................................................................................................................................................................11-6

Changeover Options II ..........................................................................................................................................................................................11-7

Possible Changeover Scenarios ............................................................................................................................................................................11-8

Case 1: CCC of LC Loans before LCC ................................................................................................................................................................11-9

Case 2: CCC of FC Loans before LCC ..............................................................................................................................................................11-10

Case 3 (Standard): CCC of LC Loans after LCC ...............................................................................................................................................11-11

Case 3 (Additional Case): CCC of FC Loans after LCC...................................................................................................................................11-12

CCC: Converting the Data ..................................................................................................................................................................................11-13

Local Currency Changeover and Loans I ...........................................................................................................................................................11-14

Local Currency Changeover and Loans II..........................................................................................................................................................11-15

Contract Currency Changeover (CCC): Process Flow.......................................................................................................................................11-16

Contract Currency Changeover:Preparation Activities ......................................................................................................................................11-17

Preparation Activities: Overview........................................................................................................................................................................11-18

General Preparation Activities............................................................................................................................................................................11-19

Contract Currency Changeover: Postings...........................................................................................................................................................11-20

I) Contract Currency Changeover: Accounts .....................................................................................................................................................11-21

II: Processing Foreign Currency Loans ..............................................................................................................................................................11-22

III: Customizing: Currencies...............................................................................................................................................................................11-23

III: Define Flow Types for Adjustment Postings and Currency Swap Postings................................................................................................11-24

III: Currency Swap Postings for Loan Positions and Adjustments to Capital Amounts ...................................................................................11-25

III: Currency Swap Posting: Open Items............................................................................................................................................................11-26

III: Account Determination for Flow Types.......................................................................................................................................................11-27

III: Correspondence.............................................................................................................................................................................................11-28

Preparation Activities per Loan ..........................................................................................................................................................................11-29

I: Process Suspended Data ..................................................................................................................................................................................11-30

II: Empty Rollover File.......................................................................................................................................................................................11-31

Contract Currency Changeover:Conversion Phase ............................................................................................................................................11-32

Contract Currency Changeover: Conversion Procedure ....................................................................................................................................11-33

CCC: Start Conversion for Individual Loans .....................................................................................................................................................11-34

Check Incoming Payment Distribution Level ....................................................................................................................................................11-35

Conversion of Master Data .................................................................................................................................................................................11-36

Conversion of Flow Data ....................................................................................................................................................................................11-37

Conversion of Borrower's Note Orders ..............................................................................................................................................................11-38

Loans Rolled Over ..............................................................................................................................................................................................11-39

CCC: Example ....................................................................................................................................................................................................11-40

Currency Swap Posting: Loan Position ..............................................................................................................................................................11-41

Generating and Posting Adjustment Flows ........................................................................................................................................................11-42

Currency Swap Posting: Open Items ..................................................................................................................................................................11-43

Currency Swap Posting: Premium/Discount ......................................................................................................................................................11-44

Currency Swap Postings .....................................................................................................................................................................................11-45

Adjustments Made During Conversion ..............................................................................................................................................................11-46

Balance Adjustments I ........................................................................................................................................................................................11-47

Balance Adjustments II.......................................................................................................................................................................................11-48

Resetting the Contract Currency Changeover ....................................................................................................................................................11-49

Reset Changeover: Procedure .............................................................................................................................................................................11-50

Contract Currency Changeover:Cleanup Activities ...........................................................................................................................................11-51

Cleanup Activities...............................................................................................................................................................................................11-52

Check Conversion Log .......................................................................................................................................................................................11-53

Cleanup: Balance Sheet Transfer........................................................................................................................................................................11-54

Other Cleanup Activities.....................................................................................................................................................................................11-55

Other Cleanup Activities: Selection Criteria for Files .......................................................................................................................................11-56

Other Cleanup Activities: Euro Foreign Currency Loans ..................................................................................................................................11-57

Other Cleanup Activities: Foreign Currency Loans- Customizing ....................................................................................................................11-58

Other Cleanup Activities: General Note.............................................................................................................................................................11-59

CCC: Mass Processing........................................................................................................................................................................................11-60

CCC: Mass Processing - Customizing................................................................................................................................................................11-61

Contract Currency Changeover: Unit Summary ................................................................................................................................................11-62

Exercises .............................................................................................................................................................................................................11-63

Solutions..............................................................................................................................................................................................................11-64

© SAP AG 1999

AC815 Loans Management

© SAP AG

AC815AC815

Loans Management for Financial ServicesLoans Management for Financial Services

R/3 System Release 4.6C December 2000 Material Number 5004 1948

© SAP AG 1999

Copyright 2000 SAP AG. Все права защищены.

Копирование и воспроизведение данного материала спомощью любых средств и в любых целях, как полностью,так и частично, а также перевод на другой язык без предварительного разрешения SAP AG запрещены.Информация, содержащаяся в данном материале, может быть изменена или дополнена без предварительного уведомления.

Все права защищены.

Copyright

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Vivo ® и VivoActive ® являются зарегистрированными торговыми знаками RealNetworks, Inc. ARIS Toolset ® является зарегистрированным торговым знаком IDS Prof. Scheer GmbH, Saarbrücken

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ArchiveLink, SAP Business Workflow и ALE/WEB являются торговыми знаками или зарегистрированными торговыми знаками SAP AG. Логотип SAP, все другие продукты, услуги, логотипы или торговые марки, упомянутые в документации, также являются зарегистрированными торговыми знаками SAP AG.

Все другие продукты, услуги или торговые марки, упомянутые в документации, являются торговыми знаками или зарегистрирорванными торговыми знаками их владельцев.

© SAP AG 1999

Финансовый менеджмент

Финансовый менеджмент: обзор

AC030 3 дня

Уровень 2 Уровень 3

Учет и отчетность

AC010 5 дней

Учет финансовых средств

AC215 1 день

Основные функции в Фин. менеджменте

AC810 3 дня

Управление наличностью

AC805 3 дня

Денежный рынок, иностранная валюта и дериваты

AC825 3 дня

Управление ссудами дляфинансовых учреждений

AC815 5 дней

Управление ссудамидля корпораций

AC816 3 дня

Управление ценными бумагами

AC820 4 дня

Управлениерыночными рисками

AC830 3 дня

© SAP AG 1999

AC030 - Overview of Treasury

AC810 - Basic Functions in Treasury Management

AC010 - Financial Accounting and Reporting

Course Prerequisites

© SAP AG 1999

Audience:

Project managerProject team

Duration: 5 days

Target Group

Notes to the user: The training materials are not teach-yourself programs. They complement the course instructor's explanations. On the sheets there is space for you to write down additional information.

(C) SAP AG AC815 1-1

© SAP AG 1999

Course goals

Course objectives

Course content

Course overview diagram

Main business scenario

Contents:

Course Overview


© SAP AG 1999

Course Goals

This course will prepare you to:

Use the functions for loans given and make the corresponding Customizing settings

Outline typical processes for loans given, including the transfer to Financial Accounting and integration with Cash Management


© SAP AG 1999

Course Objectives

At the conclusion of this course, you will be able to:

Carry out all the steps in the loan process and make the corresponding system settings


© SAP AG 1999

Course Content

Unit 7 Closing Operations

Unit 8 Special Cases

Unit 9 Rollover

Unit 10 Complete ProcessIncluding Master Data

Unit 11 Contract CurrencyChangeover

Unit 1 Course Overview

Unit 2 Loans Management within SAP Treasury

Unit 3 Process Flow forLoans Given

Unit 4 Loan Contract

Unit 5 Disbursement

Unit 6 Payments Due

Preface


© SAP AG 1999

Loans Managementwithin SAP Treasury Process flow for

loans given

Loan contract

Payments due

Disbursement

Closing operations

Rollover

Special casesComplete processincluding master data

Contract currencychangeover

Course overview

Course Overview Diagram


© SAP AG 1999

Main Business Scenario

You are using (or have successfully installed) the FI and Treasury Cash Management modules. You now want to use SAP Loans Management to enter and manage loans given by your company, and to carry out the related accounting tasks.


© SAP AG 1999

Overview of SAP R/3-Treasury

Role of Loans Management

Loan Forms Supported

Process Flow for Loans Given

Interface with Financial Accounting

Datafeed Link

Contents:

Loans Management Within SAP Treasury


© SAP AG 1999

Provide an overview of SAP R/3 Treasury

List the relevant product types

Describe the role of Loans Management within SAP R/3 Treasury

List the loan forms supported and explain the process flows in Loans Management

At the conclusion of this unit, you will be able to:

Loans Management Within SAP Treasury: Unit Objectives


© SAP AG 1999

Process flow forloans given

Loan contract

Payments due

Disbursement

Closing operations

Rollover



Course overview

Loans Managementwithin SAP Treasury



© SAP AG 1999

Before you begin your work in the project team, you want to gain an overview of SAP R/3 Treasury, in particular of the Loans Management component.

Which products and processes can be mapped using Loans Management? What functions are available?

Loans Management within SAP Treasury: Business Scenario


© SAP AG 1999

Bank data

Businesspartner

Market data

Logistics

CMCM

Financial AccountingFinancial AccountingDD CC DD CC100 100 100 100

US$UNI

MRMMRM

TM/LOTM/LO

ForexForexMoney Mkt Money Mkt

DerivativesDerivativesSecuritiesSecurities LoansLoans

Download

Cash Management:Electronic bankingLiquidity statusIntegrated operational systemsControl functions

Treasury Management/Loans management

Management of financial transactions and positionsTransfer to Financial Accounting Flexible reportingDatafeed interface

Market Risk ManagementInterest/Currency exposureMark-to-MarketRisk analysis/SimulationValue at Risk

SAP Treasury

The objective of the SAP Treasury module is to ensure efficient liquidity, portfolio and risk management.

The SAP Treasury module is divided accordingly into three areas: The Cash Management (CM) component carries out electronic banking tasks and provides functions for efficient liquidity analysis.

The Treasury Management (TM) and Loans Management (LO) components support the management of financial transactions and positions.

The Market Risk Management (MRM) component provides methods and procedures for assessing interest-rate and currency risk positions.


© SAP AG 1999

Mortgage loansBorrower's note loansPolicy loansOther loans

Fixed-term depositsDeposits at noticeCommercialPaper

Product Types

DerivativesForexLoansSecuritiesMoney market

Stocks Subscription rightsInvestment certificatesBondsConvertible bondsWarrant bondsWarrants

Forex spot dealsForward exchange dealsForexswaps

Cap / FloorFRASwaps- Interest rate- Cross currency interest rateOTC options

- Currency- Interest- Securities- SwaptionFutures

Hedging instrumentsInvestment/borrowinginstruments:

Selection of Financial Instruments

For short-term liquidity and risk management, you can use money market or foreign exchange transactions to smooth out liquidity deficits or surpluses. In the medium and long term, securities and loans instruments also come into play.

Derivative instruments allow you to hedge against interest-rate and currency risks.


© SAP AG 1999

Money marketinstruments:

- Fixed-term deposits- Deposits at notice- Commercial Paper

Forexinstruments:

- Spot transactions- Fwd transactions- Forex swaps

Loans

LongLong--termterm

Securities

BorrowingLoans

Liqu

idity

pos

ition

Planning horizon

DeficitDeficit

SurplusSurplus

ShortShort--termterm

Money marketForex

Borrowing

Money marketForex

InvestmentTRTR--TMTM

TRTR--TMTM

Short-Term Financial Instruments

Investment


© SAP AG 1999

Loans

LongLong--termterm

InvestmentSecurities

Borrowing BorrowingLoans

Liqu

idity

pos

ition

Securities:

- Stocks- Bonds- ...

Loans:

- Mortgage loan- Borrower's noteloan

- Policy loan- ...

TRTR--TMTM

TRTR--TMTM

Planning horizon

DeficitDeficit

SurplusSurplus

ShortShort--termterm

Money marketForex

Borrowing

Money marketForex

Investment

Medium - Long Term Financial Instruments


© SAP AG 1999

Loans management

Borrower's note loans

General loansPolicy loans

Mortgage loans

Loan Forms Supported

SAP Loans Management supports various forms of loan: - Mortgage loans:This option allows you to map loans that are tied to an encumbrance. - Borrower's note loans:Loans granted on the basis of a borrower's note. - Policy loans:Loans connected to a policy, such as an endowment policy. - General loan: You choose this option for all other forms of loan (for example, loans to

employees).

(C) SAP AG AC815 2-10

© SAP AG 1999

Integration with R/3 FI / TR Cash Management

Master DataMaster Data

Business partnerCredit standing checkNew business tablesFiled documentsCollateralObject master dataCollateral values

Mortgage loans givenMortgage loans given

Inquiry by interested partyApplicationDecision-makingOfferContract

RolloverProcess mgmtTransfer postings. . .

Position ManagemenPosition Managementt

Evaluation Reports - Information System

Overview of the Process for New Business -Mortgage Loans

The loans area enables you to manage loans that can be linked to various different master data from a process view.

There are also numerous Position Management functions which can be utilized for loans which have been entered in the system.

The transactions in Loans Management are integrated with the R/3 Financial Accounting component and with TR-Cash Management.

A range of programs allow you to carry out evaluations according to different criteria.

(C) SAP AG AC815 2-11

© SAP AG 1999

Evaluation Reports - Information System


Contract OfferContract OfferInterest. partyInterest. party ApplicationApplication ContractContract

• Mortgages • Mortgages• General loans

• Mortgages• General loans• Policy loans


Borrower's note loans: Reservation / order /contractBorrower's note loans: Reservation / order /contractD

ecis

ion-

mak

ing,

if a

pp.

Possible Procedures for Loan Processing

There are separate menus for each type of loan. These contain the possible steps in the loan process for the type of loan in question.

The process in the mortgage loan area is the most complex. All forms of loan are integrated with R/3 FI and TR-CM and can be evaluated according to various criteria.

(C) SAP AG AC815 2-12

© SAP AG 1999

Producttypes Contract

Conditions

Businessoperations

Partnermanagement

Companycode

Plannedrecords

G/Lacctg

Acctsreceivable Open

items

Cash-mgmt

Incomingpayments

Technical Overview: Loan Processing

When you create a loan contract, the system calculates future cash flows from the loan data and displays them as planned records in the cash flow. The system posts records in the Treasury- Loans Management sub-ledger. All information that is relevant for posting is subsequently transferred to the R/3 FI General Ledger and if required to FI Sub-ledger accounting (customer accounting), according to the corresponding settings in Customizing.

(C) SAP AG AC815 2-13

© SAP AG 1999

InterfaceInterfaceInterface

User's financialaccountingsystem

User's financialUser's financialaccountingaccountingsystemsystem

LoansManagement

R/3 Financial Accounting((FI)FI)- General Ledger -Accounts receivableAccounts receivable

Loans Management- Financial Accounting

The system always transfers data that is relevant for posting from Loans Management to the R/3 General Ledger, even if you do not carry out your Financial Accounting using R/3 Basis.

Users who do not use R/3 FI can move their posting data from the R/3 General Ledger to their own financial accounting system using a customer-specific interface (Extract program).

(C) SAP AG AC815 2-14

© SAP AG 1999

Selection of financialtransactions/ flowsto be posted.

Loan contract: Cash flowLoan contract: Cash flow05/01/YY 150,000.00 Loan disbursement 000105/01/YY 150,000.00 Loan disbursement 000106/30/YY 1,720.83 Interest debit pos. 011006/30/YY 1,720.83 Interest debit pos. 011006.30.99 639.05 Annuity repayment 012506.30.99 639.05 Annuity repayment 0125

FI Interface

Financial Accounting

Integration in FI

Each loan is based on certain transaction data (such as nominal amounts, interests rates). This transaction data is used to generate the loan flows, as illustrated above. The loan flows are then used to determine the data required for posting. This data is transferred to the FI interface along with the generated flows that need to be posted. The postings are made online using the FI functions.

In the case of loans posted via customer accounts, postings are made to the corresponding customer account. From here, the payments are transferred to Financial Accounting, where the items can be cleared in various ways: The system triggers the required payment transactions and clears the open items automatically, for example, via the link to the FI payment program or by transferring data from the electronic bank statement.

You post the payments and clear the open items manually. The posting logic is based on the account assignment reference defined for the loan transaction and the user-definable settings for account determination.

(C) SAP AG AC815 2-15

© SAP AG 1999

SAP R/3 Datafeed provider

Selective update

Query

Que

ry

Reply Internet/ RFC

TR applications

Informationprovider

Externalinterfaceprogram Datafeed

logDatafeedserver

Translationtable

MarketRiskMgmt

Securities Forex . . .

OperativeSAP tables

Reply

Market data

buffer

Datafeed Architecture

There are various ways to maintain current market data (such as, foreign exchange rates, securities prices, reference interest rates, indexes ...): Manual entry Market data file interface

This allows you to maintain the relevant data (manually or via a data provider) using a different medium, such as MS Excel, and then import the data into the R/3 system in a compatible format.

Datafeed The datafeed link enables you to make market data available in the system on a real-time basis.

(C) SAP AG AC815 2-16

© SAP AG 1999

TR RolesTR Roles

Cash manager

Trader

Back office clerk

Accountant

Risk controller

Credit analyst

Staff acc. for loans

...

TR administrator

Treasury manager

Assign activities

Generate Menus

Role - Based Menus

The following roles are available as templates in Loans Management SAP_TR_LO: Credit analyst (Credit advisor) CREDIT_ANALYST: Contract acquisition: Collateral/objects; determination of collateral value; collateral value proposal; release of collateral value; credit standing check

Loans Officer LOANS_OFFICER: Current business partner and contract management: Business partner; application data entry; offer creation; contract creation; disbursement entry; correspondence; loan release.

Rollover Officer ROLLOVER_ OFFICER : Contract renewal: Rollover, correspondence. Staff Accountant: STAFF_ACCOUNTANT : Monitoring postings and payment flows: Posting transactions; accrual/deferral calculation; position valuation; financial accounting reporting; reversal; posting/monitoring incoming payments; clearing

Departmental Manager DEPARTM_MANAGER: responsible for Position Management: Release; conditions table; reporting

(C) SAP AG AC815 2-17

© SAP AG 1999

Provide an overview of SAP R/3 Treasury

List the relevant product types

Describe the role of Loans Management within SAP R/3 Treasury

List the loan forms supported and explain the process flows in Loans Management

You are now able to:

Loans Management Within SAP Treasury: Unit Summary


© SAP AG 1999

General posting options

Create contract

Enter conditions

Cash flow

Disburse contract

Integration with FI

Payment program

Initial incoming payments (interest/repayments)

Contents:

Process Flow for Loans Given


© SAP AG 1999

Provide an overview of the full loan process for a general loan, from creating new business and disbursing the contract through to the initial interest payments and repayments.


Process Flow in Loans Management: Unit Objectives


© SAP AG 1999


Loan contract

Payments due

Disbursement

Closing operations

Rollover



Course overview




© SAP AG 1999

Our sample company decides to use SAP R/3 Loans Management to enter and manage the loans it grants. It wants to map the transaction process from contract conclusion through to the processing of interest payments and repayments.

Process Flow for Loans Given: Business Scenario


© SAP AG 1999

1. Disbursement: a)”Preliminary posting": Balance sheet to Bank clearing

c) Bank statement: Bank clearing to Bank

2. Debit position: a)”Preliminary posting": Bank clearing to Balance Sheetto Interest revenue

c) Bank statement: Bank to Bank clearing

I. Without customer account

General Posting Options I

In the case of loans not posted to customer accounts, the system makes postings to General Ledger accounts.

For loans not managed on the basis of customer accounts you can use the payment details functions for payment processing.


© SAP AG 1999

1. Disbursement: a)”Preliminary posting": Balance sheet to Customer accountReconciliation account

b) Payment program: Customer account to Bank clearing

c) Bank statement: Bank clearing to Bank

2. Debit position: a)”Preliminary posting": Customer account to Balance sheetto Interest revenue

b1) Customer pays by bank transfer

Bank statement: Bank clearing to Customer account

Bank to Bank clearingorb2) Customer pays by direct debit

Payment program: Bank clearing to Customer account

Bank statement: Bank to Bank clearing

II. with customer account and payment program

General Posting Options II

For loans managed on the basis of a customer account, you cannot use the payment details functions for payment processing, but rather the functions connected with customer accounts.

Postings made to customer accounts are first posted to sub-ledger accounts. When you use customer accounts you can make use of all the FI Finance functions that are connected with customer accounts, such as dunning, calculation of interest on arrears, and the payment program for automatic payments (SAPF110).


© SAP AG 1999

1. Disbursement: a)”Preliminary posting”: Balance sheet to PR clearing

b) Payment program for PR: PR clearing to Bank clearing

c) Bank statement: Bank clearing to bank

2. Debit position: a)”Preliminary posting": PR clearing to Balance sheetto Interest revenue

b1) Customer pays by bank transfer:

Bank statement: Bank clearing to PR clearing

Bank to Bank clearingorb2) Customer pays by direct debit:

Payment program for PR: Bank clearing to PR clearing

Bank statement: Bank to Bank clearing

III. without customer account, using payment program for payment request (PR)

General Posting Options III

For loans not managed on the basis of customer accounts you can use the payment details functions for payment processing. This means you can choose either a "direct" posting, see I. or you can use a payment request, see III.

If you use the payment request function for non-customer posting, the posting logic is the same as for customer-based processing except that instead of a customer account a clearing account is used for payment requests, this account can be cleared using a payment program (SAPF111)


© SAP AG 1999

Interest payments / repayments

Disbursement

Contract

Application / Offer

General Process Flow


© SAP AG 1999

Post interest payments/repayments due

Payment program and/or bank statement

Application/Offer/Contract

Payment program

Disburse contract

Example: Process Flow for a Loan Posted to a Customer Account

(C) SAP AG AC815 3-10

© SAP AG 1999

3

2

1

4Application Transfer to

Contract

Createcontract

Transfer tocontract

Transfer toofferApplication

Offer

Transfer tocontract

Contract - 4 Ways of Entering Contracts in the SAP System

A loan is managed in Position Management when you enter a contract and post a disbursement. In addition to entering data from legally binding contracts, you are also able to map the contract acquisition process. You can first enter loan data in the form of an application, it is possible to add supplementary data at the offer stage and also when you have concluded the final contract.

The different statuses that a loan can or must pass through (Application, Offer, Contract) depend upon your company-specific settings in Customizing.

(C) SAP AG AC815 3-11

© SAP AG 1999

ContractContract

ChangeChange

DisburseDisburse

WaiveWaive Full waiver

Partial waiver

DisplayDisplayCreateCreate

ReactivateReactivate

Contract - Function Overview

(C) SAP AG AC815 3-12

© SAP AG 1999

Create Contract: Initial ScreenCreate Contract: Initial Screen

Company codeLoan numberProduct type

0001/internal/33A

Business partner selectionRole category: Main loan partner

E N T E R

Contract - Initial Screen

You can clearly identify a loan (Application, Offer, Contract) within the system by way of its individual loan number. You can assign numbers externally or the system can do so internally, depending on the settings in Customizing.

(C) SAP AG AC815 3-13

© SAP AG 1999

Basic dataBasic data ConditionsConditions CollateralCollateral CorrespondenceCorrespondence

Loan typeLoan class (standard loan, preliminary loan) ...)Contract currency (UNI, EUR ...)Approval dateCommitment datePurpose of loan (personal loan, building loan ...)Maturity (term < 1 year ... )

Contract - Basic Data

The data that you enter as Basic Data is generally used - for information - for evaluation purposes in Reporting - as values for the automatic determining of the account assignment reference.

The following abbreviations are used for efficient data entry: Entering dates: 0 : today +n: today + n days -n: today - n days ++n: today +n months +++n: today + n years Entering amounts: T or t for thousand M or m for million The abbreviations T/t and M/m can be changed in Customizing.

(C) SAP AG AC815 3-14

© SAP AG 1999


Condition header:

- Commitment capital- Disbursement rate- Repayment type (final repayment, instalments, annuity)- Start of term / end of term- Fixed from /fixed to- Effective interest method (PangV, Braess ...)- ...

Contract - Condition Header

In the condition header you enter the underlying condition data for the loan. This includes: - Start of term / end of term: Loan term - Fixed from / fixed to: Validity period for the first condition agreements.

The fixed from / fixed to - period can be shorter than or equal to the loan term.

(C) SAP AG AC815 3-15

© SAP AG 1999


Condition items:

For each condition type (fixed nominal interest / instalmentrepayment / charge ... ):

- Effective from- Percentage rate or amount- Calculation date- Due date- Exact payment form- ...

Contract - Condition Items

You enter the individual, specific conditions as condition items. The calculation date refers to financial mathematical calculations, for example the calculation date for an interest condition is the last interest day of the interest period in question. The due date refers to the date on which payment is due. The "Exact payment form" is the combination of payment method (at start of period, mid-period, at end of period) and frequency in months ( monthly, quarterly, every six months ...) and specifies when exactly amounts will be calculated or due.

You can choose to enter all the condition item data manually or let the system enter the data on the basis of defined "initial specifications". In this case you need to specify as a minimum the commitment capital, the condition validity period, a percentage rate or amount, the exact payment form or payment method and the payment frequency.

(C) SAP AG AC815 3-16

© SAP AG 1999


Calculate cash flowCalculate cash flow

Due on05/01/YY06/30/YY06/30/YY09/30/YY09/30/YY12/31/YY12/31/YY03/31/YY+103/31/YY+106/30/YY+106/30/YY+109/30/YY+109/30/YY+112/31/YY+112/31/YY+103/31/YY+203/31/YY+2

Settlement amount100,000.00

1,166.671,333.331,726.672,000.001,691.672,000.001,656.672,000.001,621.672,000.001,551.672,000.001,516.672,000.001,481.672,000.00

CurrencyUNIUNIUNIUNIUNIUNIUNIUNIUNIUNIUNIUNIUNIUNIUNIUNIUNI

Name P

PPPPPPPPPPPPPPPPP

FType00010110012001100120011001200110012001100120011001200110012001100120

A_Loan disbursem.A_Interest deb. pos.A_Instalment repmtA_Interest deb. pos.A_Instalment repmtA_Interest deb. pos.A_Instalment repmtA_Interest deb. pos.A_Instalment repmt A_Interest deb. pos.A_Instalment repmtA_Interest deb. pos.A_Instalment repmtA_Interest deb. pos.A_Instalment repmtA_Interest deb. pos.A_Instalment repmt

Contract - Cash Flow

The financial mathematical function modules generate a time series of flows, called a cash flow, for a financial transaction in the application (such as buying stocks, SWAP, loan contact).The cash flow is generated for the pre-determined calculation period on the basis of the conditions belonging to a financial transaction.

The cash flow for the financial transaction forms the starting basis for all trading processes, transaction processes, and Position Management processes as well as for evaluation activities within Treasury. The cash flow serves, among other things, as a foundation for:

- effective interest calculation - posting - time-based accruals/deferrals on expenses and revenue

The cash flow display is connected to the ABAP List Viewer.

(C) SAP AG AC815 3-17

© SAP AG 1999

Contract: Disbursement

Create Disbursement: Basic DataCreate Disbursement: Basic Data

Disbursement basic data

CoCd.Loan

Flow typeTextPayment dateIntValDateWithhold up toPosting controlCustomerPayment methodPartner bank typeHouse bank

A_Loan disbursement

Capital dataCurrent contr. cap.Nominal capitalDisbursement in %Gross pmnt amountNet pmnt amount

Disbursement rate

General loan000140000000

33A

0001

05/01/YY05/01/YY05/01/YY

100.000,00 UNI0,00

100,0000100.000,00 UNI

100,00000

99,900.00

Automatic Debit Position Run

Incl..

PS1

Borrower 00

1000000262 Bank transfer with single payment

Flow type A_Loan disbursementTextPayment dateIntValDateWithhold. Up toPosting control CustomerPayment meth.Partner bank typeHouse bank


Contract: Disbursement

Enter Disbursement: Basic Data Enter Disbursement: Basic Data


CoCdLoan

Flow typeTextPayment dateIntValDateWithhold. Up toPosting control CustomerPayment meth.Partner bank typeHouse bank

A_Loan disbursement

Capital dataCurrent contr. cap.Nominal capitalDisbursement in %Gross pmnt amountNet pmnt amount

Disbursement rate

General loan000140000000

33A

0001

05/01/YY05/01/YY05/01/YY

100,000.00 UNI0.00

100.0000100,000.00 UNI

100,000.00

99,900.00

Automatic debit position

Incl..

PS1

Loan partner 00

1000000262 Bank transfer with single payment

You make the following specifications for the disbursement : - Payment indicator: set / not set: The disbursement is posted to a customer account/ a non-

customer account. - Payment date: The date of disbursement transferred to Financial Accounting and to Cash

Management. - Interest value date inclusive /exclusive : The date of disbursement is / is not included in the

interest calculation for the disbursement amount. - Payment method: The payment method must be set as a payment method with single payment

in FI. This prevents the system from clearing the disbursement amount with other amounts in the payment program.

- The partner bank type encodes the bank details for the borrower that are maintained in the business partner master record.

- If you define a house bank then during the payment run the system debits the disbursement amount from an account at this house bank. The system selects an account in the payment run according to the rules defined there. If you do not define a house bank with the disbursement the system determines a suitable bank and a suitable account in the payment run itself.

- Disbursement in %: Full disbursement or partial disbursement - Gross payment amount or net payment amount: In the case of partial waivers with incidental

costs you decide whether incidental costs should be calculated to the disbursement amount (net) or raised to the disbursement amount including capital amounts (gross). (Gross: value-dated amount, net: actual flow of cash). Example: Capital amount 100 000 UNI. First partial disbursement 40% Incidental costs 2 000 UNI Case 1: Gross payment amount 40 000 --> Net 38 000 Case 2 Gross 42 000 -->Net 40 000. Final partial disbursement 60%, no incidental costs: gross / net case 1: 60 000; case 2: 58 000.

(C) SAP AG AC815 3-18

© SAP AG 1999

Create Disbursement: Incidental CostsCreate Disbursement: Incidental Costs

Capital amounts

Available capital Value-dated capital

Flows

Flow type

Processing charges

Company codeLoan numberBorrower

General loanContract

Loan partner 00

0001 33A40000000 60

Due on WithheldSettlementamount

Paymentmethod

100,000.00 100,000.00

3145 05.01.YY 100.00 X

Disburse Contract: Incidental Costs

If you intend to include (one-off) incidental costs in the disbursement, you must enter these costs here. The Customizing settings determine which flow types are permissible. You can withhold the incidental costs that you enter here. This means that they are deducted from the disbursement amount (flag: W/H). Alternatively, you can simply post the incidental costs (no flag: W/H). If you trigger the payment of these positions at a later date, you must define a payment method in order to process these payments in the payment program.

(C) SAP AG AC815 3-19

© SAP AG 1999

Disbursement

Save Post (manually)

P

Post manually Post automatically

“Automaticdebit position”

or"Manual

debit position"

“Automaticdebit position”

I I

I

Prerequisite:Field “Posting control”

Prerequisite:Field “Posting control”

Saving/Posting Disbursements

You can either post the disbursement immediately (A - actual record), or save it first (P - planned record), and post it later.

You can post the planned record of a disbursement manually using individual processing by calling up the disbursement data for this loan, or you can post it automatically as part of mass processing using the program "Post planned records". The entry that you make in the Posting control field when you enter a disbursement determines whether only manual or both manual and automatic processing is permitted.

(C) SAP AG AC815 3-20

© SAP AG 1999

Balance sheet account46020

Disb. reconciliation acct150600

1) 100,000 100,000 1)

Rec. reconciliation acct150000

2) 100 100 2)

Other revenues299100

3) 100,000 99,900 3)

Technical clearing acct194200

100 3)4) 100

100 4)

1) Loan disbursement2) Incidental costs debit position3) Incidental costs withheld: Disbursement reduced (only posted in FI)4) Incidental costs withheld: Incoming payment

Disburse Contract: Posting

Example: Disbursement of a loan with incidental costs, posted to a customer account.

(C) SAP AG AC815 3-21

© SAP AG 1999

Selection of financialtransactions/flowsto be posted.

Loan contract: Cash flowLoan contract: Cash flow05/01/YY 150,000.00 Loan disbursement 000106/30/YY 1,720.83 Interest debit pos. 011006/30/99 639.05 Annuity repayment 0125

05/01/YY 150,000.00 Loan disbursement 000106/30/YY 1,720.83 Interest debit pos. 011006/30/99 639.05 Annuity repayment 0125

FI Interface


Integration in FI

When you post the disbursement the Financial Accounting interface is called up for the first time for a loan.

(C) SAP AG AC815 3-22

© SAP AG 1999

Cash flow in contract

Post disbursement


Payment date Settlement amnt Name P FType

05/01YY 100.000,00 Loan disburse. P 0001

Payment date Settlement amnt Name P FType

05/01/YY 100.000,00 Loan disburse. I 0001

'Plannedrecord'

'Actualrecord'

Planned Record -> Actual Record

Flows that have been entered but not posted are displayed as P - Planned records in the cash flow. Records that have been posted are displayed as I - Actual records.

(C) SAP AG AC815 3-23

© SAP AG 1999

Proposal data setProposal data set Editproposal

MasterMaster

Payment Payment controlcontrol

CurrentCurrentparametersparameters

DocumentsDocuments

Proposal run

Proposal dataProposal data Editproposal

MasterMaster



DocumentsDocuments

Automatic Payment: Payment Program

Payment run

Print data

Print programPrint program

Check BankBank Payment Paymenttransfertransfer advice summary

Pmntmedium

Automatic

By posting the disbursement you end the posting procedure. In order to now actually make the money available to the customer you need to activate the corresponding payment transactions. During the payment run the system continues to process the disbursement obligations and makes payments by means of bank accounts. After the print program the determined payment method is forwarded to the house bank, which deals for example with the bank transfer of the amount to the loan partner.

(C) SAP AG AC815 3-24

© SAP AG 1999

Balance sheet acct46020


1) 100,000 100,000 1)


2) 100 100 2)


3) 100,00099,900 3)


100 3)4) 100

100 4)

5) Payment program6) Bank statement

Bank clearing account113105

6) 99,900 99,900 6)

Bank account113100

99,900 5)

5) 99,900

Disbursement Payment (Bank Transfer): Posting

(C) SAP AG AC815 3-25

© SAP AG 1999

?

tototo

to

000140000000

Company codeContract numberPartnerProduct typeUp to and incl. due datex Test runx Log

01 Loan Partner 00 150100 UNIRepayment receivables

1.333,33 D 0120

01 Loan Partner 00 UNIInterest receivables150200 1.166,67 D 0110

50 273100Interest received

UNI 1.166,67 C

50 46000Other loans

UNI 1.333,33 C

Automatic Posting: Post Planned Records

The future flows that are to be calculated for a loan must be set as due, in other words posted, for each date. The "Post Planned Records" program allows you to use mass processing. The system posts all of the planned records for the loans selected that are due either on or before the date in the Up to and including due date field.

(C) SAP AG AC815 3-26

© SAP AG 1999

Balance sheet account46020


1) 100,000 100,000 1)


2) 100 100 2)


3) 100,00099,900 3)


100 3)4) 100

100 4)

7) Post planned records: Post (interest and repayment) amounts due (P--->A)


6) 99,900 99,900 6)

Bank account113100

99,900 5)

5) 99,900

Rec. reconciliation acct150100/150200

Interest revenues273100

7) 2,500

1,167 7)

1,333 7)

Posting Planned Records Due

(C) SAP AG AC815 3-27

© SAP AG 1999

Payment received from customer

Bank statement Payment program

Bank statement

By bank transferor by check

By direct debit

Payment Options

The customer has various options for paying due amounts. You have to carry out different processing activities for these options:If the customer pays by transfer, you receive the payment and the information from the account statement of your house bank. If the customer pays by direct debit, you trigger payment by executing the payment run. The money is collected using the payment media generated. The account statement data informs you about the incoming payment.

(C) SAP AG AC815 3-28

© SAP AG 1999

Balance sheet acct46020


1) 100,000 100,000 1)


2) 100 100 2)


3) 100,00099,900 3)


100 3)4) 100

100 4)

8) Incoming payment for the amounts due, for example by bank transfer


6) 99,900 99,900 6)

Bank account113100

99,900 5)

5) 99,900

Rec. reconciliation acct150100/150200

Interest revenues273100

7) 2,500

1,167 7)

1,333 7)

2,500 8a)2,500 8a)8b) 2,500

2,500 8b)

Incoming Payment

(C) SAP AG AC815 3-29

© SAP AG 1999

provide an overview of the full loan process for a general loan, from creating new business and disbursing the contract through to the initial interest payments and repayments.


Process Flow for Loans Given: Unit Summary

(C) SAP AG AC815 3-30

Process Flow for Loans Given: Exercises

Unit: Process Flow for Loans Given

At the end of these exercises, you will be able to:

• Explain the process flow for creating loans, disbursements, and the first interest payments and repayments.

Your company has granted a loan to a customer. You want to enter the contract details and the conditions agreed in the system.

1 Create a contract for a mortgage loan in your company code TRXX (XX = group ID). Use the business partner that has already been created in the role "Main borrower" for your group (Loan partner XX).

1-1 Enter the basic data for the loan:

Basic data:

• Loan type: 1A

• Loan category: Standard loan

• IPD control: Contract variant

Analysis data:

• Maturity: > 10 years (!)

Make sure that you enter the maturity information. This is very important when you post the transaction later on.

(C) SAP AG AC815 3-31

1-2 Enter the loan conditions.

Condition header:

• Commitment capital: 100,000 UNI

• Disbursement rate: 100%´

• Fixed period: 10 years

• Repayment type: Annuity

• Discount determination: Total with first disbursement.

Individual condition items:

• Nominal interest at a rate of 6%, payment every 6 months, at the end of the period.

• Annuity repayment at an annual rate of 2%, due every 6 months, at the end of the period, immediate settlement of the repayment.

• Processing charges of 500 UNI are due at the end of each year.

1-3 Have the system calculate the effective interest rate and the term end for the contract.

1-4 Look at the cash flow generated on the basis of the conditions entered.

1-5 Display the customer number of your business partner via the partner overview and note the number for later.

Save the mortgage loan and make a note of the contract number assigned by the system.

(C) SAP AG AC815 3-32


• Loan disbursement

Once you have created the loan contract, you can disburse it. You have to trigger the outgoing payment and the posting to the appropriate accounts.

2 Enter a loan disbursement.

2-1 To enter a loan disbursement:

• Select the flow type that controls disbursement.

• Enter the text you want to appear in the disbursement.

• Check the payment method and enter the bank details for your business partner.

2-2 Execute the disbursement without simulating it and examine the posting log. Make a note of the document numbers displayed by the system.

3 Using these document numbers, check that the details correspond with the entries in FI. To do this, compare the documents with the customer line items via the Loans Accounting menu.

4 Return to the loan contract.

4-1 Look at the changes that arise to the cash flow as a result of the disbursement.

4-2 Call up the account statement for your business partner. Is the information in the account statement correct?

(C) SAP AG AC815 3-33


• Automatic debit position run for interest payments and repayments

Interest and repayments are due for the loan. You now need to generate open items for the expected incoming payments.

5 Prepare the automatic debit position run for the interest payment and repayment.

5-1 Go back to your contract and look at the cash flow. Check when the first interest payment and repayment are due. Make a note of this date for the debit position run.

5-2 Simulate the automatic debit position run.

Enter the following selection criteria:

• Company code: TRXX ( XX = your group ID)

• The loan number

• The corresponding debit position and posting date

5-3 Check the posting log. If there are no errors, carry out the actual debit position run using the same selection criteria.

(C) SAP AG AC815 3-34

5-4 Return to the contract and look at the cash flow again. What changes do you see?

5-5 Check the account statement for the contract and display the open items. Then look at the open items for your business partner via the Loans Accounting menu (line items for customer account).

(C) SAP AG AC815 3-35

Process Flow for Loans Given: Solutions


At the end of these exercises, you will be able to:

• Explain the process flow for creating loans, disbursements, and the first payments for interest and repayments.

1 Enter a mortgage loan:

→ Accounting

→ Treasury

→ Loans

→ Transaction Management

→ Mortgage Loan

→ Contract

→ Create

Field name or data type Values

Company code TRxx

Product type 30A

You do not have to enter a loan number. The number is assigned by the system.

Select "Loan partner XX" in the role of main borrower as your business partner. 1-1 Enter the information specified in the contract master data (basic data). 1-2 Go to the condition overview and enter the values specified in the condition

header and the data fields for the condition items.

(C) SAP AG AC815 3-36

1-3 If you select Term end and Effective int., the system calculates these values and

enters them in the corresponding fields. 1-4 Select Cash flow to display the cash flow. 1-5 Click the button for the business partner overview on the top left part of the

screen.

(C) SAP AG AC815 3-37

Unit: Process Flow for Loans Given Topic: Loan disbursement

2 Disbursement

2-1 To execute a disbursement: → Accounting

→ Treasury

→ Loans


→ Mortgage Loan

→ Contract

→ Disburse Carry out a disbursement for the loan contract you have created.

Only the flow types permitted for disbursements are displayed.

2-2 Select Post to carry out the posting and display the posting log.

3 Customer line item display

→ Accounting → Financial Accounting → Accounts Receivable → Account → Display/Change Line Items

On the selection screen, enter your customer number, the company code, and the appropriate time interval.

(C) SAP AG AC815 3-38

4 Display the contract:

→ Accounting

→ Treasury

→ Loans


→ Mortgage Loan

→ Contract

→ Display 4-1 From this screen, display the cash flow by selecting Cash flow. 4-2 Via Extras → Account statement, you can display the detailed account

statement for your contract.

(C) SAP AG AC815 3-39

Unit: Process Flow for Loans Given Topic: Automatic debit position run for interest payments

and repayments

5 Automatic debit position run for interest payments and repayments

5-1 Display the due date via → Accounting → Treasury

→ Loans


→ Mortgage Loan

→ Contract

→ Display From this screen, display the next due date in the cash flow by selecting Cash flow.

5-2 Debit position run for interest payments and repayments: → Accounting

→ Treasury

→ Loans

→ Accounting

→ Execute Posting: Per Contract

→ Post Individual Loan Use the next due date as the date for the debit position run.

5-3 Select Post to start the debit position simulation run. Flag the field Simulation in the dialog box that appears. If the log contains on errors, carry out the debit position run again without flagging the field Simulation.

(C) SAP AG AC815 3-40

5-4 Display the cash flow:

→ Accounting

→ Treasury

→ Loans


→ Mortgage Loan

→ Contract

→ Display Display the cash flow. Note the status of the flows (actual records).

5-5 Account statement

From the contract display, select Extras → Account statement and look at the open items. Then, via

→ Accounting → Financial Accounting → Accounts Receivable → Account → Display/Change Line Items

go to the item display transaction and enter your customer number, the company code, and the appropriate time interval on the selection screen.


© SAP AG 1999

Create contract

Generate correspondence

Customizing:

- Loans and Financial Accounting- Business partners- Product types- Flow types- Conditions- Correspondence

Contents:

Loan Contract


© SAP AG 1999

Enter a loan given with different condition structure variants (such as fixed interest, variable interest, suspended repayment)

Make the system settings for: - Representing the product types you require

with the corresponding conditions- Generating correspondence


Loan Contract: Unit Objectives


© SAP AG 1999


Payments due

Disbursement

Closing operations

Rollover



Course overview


Loan contract



© SAP AG 1999

Our sample company grants mortgage loans with individual conditions.

A copy of the loan contract is sent to the customer for signature.

In the application, we want to use different condition structures and generate correspondence. The relevant settings must be made in Customizing.

Loan Contract: Business Scenario


© SAP AG 1999

General Customizing Settings:

1. Enterprise Structure

2. Financial Accounting

3. Treasury

Loans Management

Customizing Levels


© SAP AG 1999

Enterprise Structure Settings

Implementation Guide for R/3 Customizing

Enterprise Structure


Define, Copy, Delete, Check Company Code:

Company code 0001Company name Group 01

Language

_

_

_ Definition_

City LondonLand ENCurrency UNI

A company code (FI) is the smallest organizational unit for which a complete set of accounts can be drawn up for purposes of external reporting. The company code is the unit for which you record all posting activities and generate the statements for individual accounts (balance sheet, profit and loss account).

In Loans Management you always create a loan in a company code.


© SAP AG 1999

Implementation Guide for R/3 Customizing (IMG)

Financial Accounting Global SettingsFinancial Accounting

Company Code

_

_

+

_

_

+

+

Enter Global Parameters

Company codeChart of accountsMax. exchange rate deviation

0001

INT

10%

Fiscal year variantFinancial Assets Mgmt active

K4

Financial Accounting Settings

This data includes the chart of accounts your company (= your company code) uses, the fiscal year variant you have adopted and so on.

If you want to use the Loans component, you need to flag the 'Financial Assets Mgmt active' field.


© SAP AG 1999

_

Treasury

Basic Functions

__


+++

Organization

+

___ Treasury Management

_

_

Define Company Code Additional Data

_

Company code 0001

1

CalendarReg. reporting activeIdent. no. ID 5

01

Treasury Settings (1)

For each company code you can maintain specific data for the Treasury area. The calendar you enter here is used for the working day check for the following: - Disbursement - Entry of business operations - Incidental costs (manual posting) - Manual changes to flows in the cash flow - Orders for borrower's note loans


© SAP AG 1999

_

Treasury

Loans

__


+++

Basic Settings

+

___ Treasury Management

_

Installation parameters

_

CurrencyWord processingArchiv. install.

UNI

SAPSCRIPT

x

Treasury Settings (2)

The fundamental Loans Management settings for processing your loans can be made in Customizing using the basic settings.

You determine here for example, which currency is to be set as default automatically for objects, parts of buildings and the interested party or which word processing function will be used during the processing of your loan.

If you want to use optical archiving for your loan correspondence, you flag the corresponding field.

(C) SAP AG AC815 4-10

© SAP AG 1999

- Create loan- Business partners- Conditions- Correspondence

InterestedInterested Applicat.Applicat. OfferOffer Contract DisburseDisburse-- OtherOther RolloverRolloverpartyparty mentment activitiesactivities

Mortgage Loan - Processing Seq. / Contract

Portfolio / AccountingTransaction Management

(C) SAP AG AC815 4-11

© SAP AG 1999

ContractContract

Change

CreateCreate Display

Mortgage Borrower's note Policy loan General loan

Create Contract

The following product categories are supported: Mortgage loans, borrower's note loans, policy loans and general loans.

(C) SAP AG AC815 4-12

© SAP AG 1999



0001/internal/33A

Business partner selectionRole category: Main loan partner

E N T E R

Loan - Initial Screen

A loan (application, offer, contract) is identified uniquely in the system by means of the loan number. The loan number can be assigned externally by the user, or internally by the system, depending on your Customizing settings.

When you create a contract, you must specify the company code, the product type and (if you are using external number assignment) the loan number. You then enter the loan partner.

(C) SAP AG AC815 4-13

© SAP AG 1999

APPLICATION LEVEL

Product cat.Product cat. Flow categoryFlow category Calculation cat.Calculation cat.

Condition typeCondition type

SYSTEM LEVEL

Status cat.Status cat.

Product typeProduct type Condition groupCondition group

Status definitions/Status definitions/status transfersstatus transfers

Flow typeFlow type

Customizing Structure: Loans

Product categories classify the various financial borrowing and investment instruments. They are predefined in the system and apply for all company codes. Product categories cannot be modified by the user.

Product types represent a refinement of product categories at user level and, unlike product categories, can be defined by the user. When you define a product type, you specify the framework for financial instruments of this product type. A product type can only be assigned to one product category. However, several product types may be assigned to the same product category. You create and process your individual financial transactions on the basis of product types.

The following activities are dependent on the product type: - Assignment of different processing methods - Selections for reporting - Assignment of different structure characteristics - Definition of yield curves in Market Risk Management

Example: Product category "mortgage loan"; product type 1 "Fixed-rate mortgage loan", product type 2 "variable-rate mortgage loan". Since both product types belong to the same product category, the system processes them in the same way. The subdivision is used for reporting purposes.

(C) SAP AG AC815 4-14

© SAP AG 1999

Product type 30A

Short text Mortgage

Product categoryAssets/Liab.

3000

Order management

Interest per disbursement1

Long text Mortgage loan given

Condition group Price gain

Collateral active Objects active User exit active

201Limit group

a a

a

Customizing: Define Product Types

You make the following general settings for the product type (settings apply for all company codes):

Product category: Controls how the system processes the loan in the background Assets / Liabilities: Loans given / loans taken (received) Condition group: Determines the conditions the user is allowed to enter for loans in this product type.

Limit group: Determines the limit product group to which amounts from loans in this product type are assigned for limit management.

Interest per disbursement: If several partial disbursements are entered in the same interest period, the system either generates a nominal interest flow for each partial disbursement (indicator set) or calculates the nominal interest flow for the cumulative amount (balance method, flag not set). Example: See F1 Help

Price gain: If this indicator is set, you can make a net posting instead of a gross posting. This field is relevant for borrower's note loans.

Order management: For each borrower's note product type you can define whether the borrower's notes should be processed using the order management functions or in the same way as a "standard loan".

Collateral/objects/user exit active: For each product type you can specify whether the tabs for entering collateral and/or object data should appear when a loan is created (the field Objects active is only relevant for the product category "mortgage loan").

(C) SAP AG AC815 4-15

© SAP AG 1999

Loanno. 10000007 Number assignment for loans

Simple numberassignment

With numbercomposition

I. II.

Loan Number

The numbers for loans (application, offer, contract) can either be specified by the person who enters the loan (external), or assigned by the system according to certain rules (internal).

If you use simple number assignment, the system assigns the loan numbers sequentially from a predefined number interval. If you use number composition, you can determine the components and the exact structure of the loan number yourself.

(C) SAP AG AC815 4-16

© SAP AG 1999

-> Product Types -> Loan Numbers -> Loan Number

10000000No. From number To number Current number01

Ext19999999 10000005

-> Product Types -> Loan Numbers -> Define Number Components

_ _ _ _ _ _ _ _ _ _ _ _ _

Component 1 Component 2 ...

Internal / external / in conjunction with an object or file

I.

II.

Customizing: Number Range for Loan Number

-> Assign Number Components to Product Type

If you use simple internal number assignment, the number range must be numerical. If you use number composition or external number assignment, you can assign alphanumeric loan numbers.

A special user exit is available for applying a check digit procedure to the number composition. The name of the corresponding module pool is SAPFF67N.

(C) SAP AG AC815 4-17

© SAP AG 1999

Product Types -> Company Code-Dependent Settings for Product Type

PTyp Text Prod. cat. Cond. group

30A Mortgage loan given 300 1

30B Mortgage loan taken 300 504

31A Borrower's note loan 310 2

33A General loan given 330 4

33B General loan taken 330 504...

"Double"Double--click"click"for detailed for detailed informationinformation

see following pages

Customizing: Product Types

(C) SAP AG AC815 4-18

© SAP AG 1999

Product Types -> Company Code-Dependent Settings for Product Type - Details

Customizing: Product Types / Details (1)

Company codeProduct typeProduct category

Condition group

0001

300504

Dunning block

01

CM period 4FI posting 3 Actual record in Treasury, posting in FI with customer

No. status 10000088Number range

A

30A Mortgage loan given

Ref. management 2

No. char.MUSample recNoRg

Dunning activeDecision-making activePmnt form startPrice gains w/o prop. gains fr. def. WB

Payment details

Rev. level IP

Number range

Basic settings

Indicators

Reversal

Number range: Number range interval for simple number assignment No. of characters: Total number of characters of the loan numbers for number composition Sample loan number range: Number range for creating sample loans

CM period: Period in years for which the planned records calculated for a position are updated in the database. This period is also used as a basis for updating Cash Management. Example: See F1 Help

FI posting: Determines whether postings for this product type should be made to a customer account or directly to G/L accounts. In the loans area, the values 3 (with customer account) and 4 (without customer account) are supported. 3: Posting on the basis of customer accounts or without customer accounts; 4: Only permits postings not made to customer accounts.

Dunning block: Used in conjunction with flows that you as the lender owe to third parties and have entered in the contract; Example: Agent's commission This dunning block prevents a reminder being sent to the borrower if the payment is delayed.

Reference management: Use of the reference management functions to see how payments have been assigned for related positions

Dunning active: Include loans of this product type in the dunning run? (Prerequisite: FI posting = 3) Price gains w/o prop. gains fr. def. WB: Relevant for borrower's note loans Interest value date inclusive: Default value for the inclusive indicator for disbursement Payment details: If you set this indicator for the product type, you can use the functions for maintaining the payment details in the loan and in the business partner standing instructions, and use the payment request function. (Prerequisite: FI posting = 4)

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Customizing: Product Types / Details (2)

Product types -> Company Code-dependent Settings for Product Type - Details

Company codeProduct typeProduct categoryCondition group

0001

3001

Defaults:

Plan/Act.pr.Posting system 0

Eff.int.method 1Alt.eff.int.meth. 4Int.calc.method 1

0IntValD Incl.

PAngVMoosmüller360E/360

Disc. determin.Payment block IPPayment block OI

Payment method 2

1

30A Mortgage loans given

Currency UNI

IPD-Control

Payt summarizationIncoming payments

Withhold Disb.

Accrued/deferred dis. 1

Field selection

NV

3 Contract3 Contract

Currency: When you create a loan contract, the contract currency is set as default. If you do not make an entry the system uses the company code currency.

Posting system: For borrower's note loans: Gross or net posting, in other words, posting to the nominal value or to an exchange rate.

IPD Control: Determines the level of control of the distribution of incoming payments that are made by bank transfer.

Payment Summarization: Determines the level of control of the distribution of incoming payments that are made by direct debit.

Generate Incoming Payment Immediately: When an entry is made, the system carries out the appropriate incoming payment postings in the debit position for due amounts immediately.For example, in cases of loans to employees where due amounts are deducted from the loan partners salary.

Withhold Disbursement and Payment Method: Default settings for disbursement (Default setting of the withhold indicator for incidental costs and a payment method by single payment)

Payment Block IP: Blocks returned debit memos to prevent these from being included again at a later date. The block prevents automatic processing from being executed, you can carry out manual processing in Treasury. (Block definitions: You cannot change the blocks in the payment proposal (without flag); no block for manual payment (without flag))

Payment Block Open Items: Credit (such as overpayment, advance payment) is not returned to the customer by transfer. You can only carry out automatic or manual incoming payment post processing in Treasury. (Block definition: You cannot change the blocks in the payment proposal (without flag); block for manual payment (flag set))

Field Selection: For many fields in Loans Management you can configure whether an entry is required or optional or whether the field is displayed or hidden.

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Entry 1 of 9

CS DGr1

Status name Int. level1

Company codeProduct type

0001 30A

3120 23331 13234 23437 33760 335

Contract offer waivedContract waivedContract

FI CGAFSXXXXXX

33

Contract offerApplic. waived/deactivated

Application

Field selection

X

Company Code-Dependent Settings for Product Type - Status per Product Type

Customizing: Status Definitions

CS: Contract status: In Customizing, you must define the statuses you want to use in your company (application, offer, contract, waiver). The system uses the internal status (internal level) to control processing.

DGr.: The document group determines the checklist that can be processed for loan documents in the respective status.

FI: If the value "3" (FI posting to a customer account) is entered in this column for a particular status, this is the first status in which postings can be made to a customer account (or to a G/L account, see product type). If no customer account exists for the business partner, the system also generates a customer account. If the value "4" is entered in this column, this is the first status in which postings can be made (not to customer accounts).

AFS: Alternative field selection: You can either make the field selection control settings for the product type (the settings then apply for all statuses for this product type) or for each status of a product type (for example, if you want to use the fields differently in application and contract status). If the indicator in this column is set, field selection control per status applies. If the indicator is not set, the field selection settings apply for all statuses of a product type.

CG: Cash flow generation: The system saves the loan data to the database for the first time when a disbursement is saved or posted. If you require database records beforehand, you can set the CG flag for an earlier status. The system then writes the loan records to the database when the loan reaches this status. Example: Calculating commitment interest

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Basic data classification basisConditions basic dataCorrespondence... ChooseChoose

Basic data

Loan type

Loan class

Primary collateral

Select group

Define Status per Product Type - Field Selection - Maintain Field Status Group

Hide Req.entry Opt.entry Display

Customizing: Define Status - Field Selection

Using the values for the field status groups you can structure the entry screen to suit your requirements.

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You need to make the following Customizing settings for the business partners used in the loans area:

1. Treasury Management -> Basic Functions -> Business PartnersFor example: Number ranges, role category field modifications, views, grouping, central data, general data, company code-dependent data

2. Treasury Management -> Loans -> Basic Settings -> Business Partner SettingsFor example: Assign role category to application, default values per product type, company code-dependent data for automatic creation

Customizing: Business Partners

In addition to the settings for business partners in the Treasury Management/Basic Functions section of the IMG, you also need to make specific business partner settings in the Loans section.

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Central data Generalrole data

Company code data:

Business partner

NameAddress overview

Bank detailsPersonal data

Employment dataLegal data

Financial yearRelationships

Role overviewRole data

Credit standingControl data

Reporting dataControls

Bank

Account managementAccount interest

calculationAutom.payt trans.Payt data

Dunning dataReporting data

ControlsRelationships

Business Partner Data - Overview

The data that you can enter for the business partner is divided into 3 sections: - Central data - This data is available for all business partners irrespective of their roles. - General data - .This is stored centrally for all roles. The amount of data you can access is

dependent upon role category and the configuration in Customizing (Role-view-allocation). - Company code-dependent data: This data is only relevant for the individual role categories in

the company code concerned.

Each of the sections is divided into different views. For example: The Central data section contains, among others, the following views:- Name- Address overview- Bank details- ...

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Business Partners

Control Data

Define Role-View Assignment

_

_

_

Roles

General

_

_

_

_

+

Define Role Types

RType Name RType RoleCA100 Main borr. 0100 Main partn.A102 Main lender 0100 Main partn.

Role ViewName of role Name

Acct mgmt0100

0100

Main partn.

Main partn.

0010

Pmnt data0040

Basic Functions: Customizing for Business Partners (1)

Name RoleC

In Customizing you can define which data views can be accessed for each role category. Example: If you do not assign the view "Dunning data" to the role category "Issuer", the user cannot call up the dunning view for this role category in the application. You can assign views from the general data and company code data areas to roles. The user can always access the central data views - for all role categories.

The functions of the business partner in the transaction are defined using business partner roles (role category). You can refine the role categories predefined in the system by defining role types in Customizing.

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TR

CreateCreatebusinessbusinesspartnerpartner

FI

CreateCreatecustomercustomer

Customizing:

Grp. NR Acct group Descr. of group.

TR01 01 DEBI TR partner (int)TR02 02 DEBI TR partner (ext)

No. Fr. no. To no. Curr. no. Ext.

01 000001 000099 502 AAAAAA ZZZZZZ X

BP grouping

Number ranges

createdautomatically

Basic Functions: Customizing for Business Partners (2)

You use the business partner grouping to define the number range to be used for the business partner. This number range controls whether the business partner key is assigned internally by the system, or externally by the user. It also determines whether the key must be numeric or alphanumeric.

In addition, you use the business partner grouping to create the link to Financial Accounting by assigning a corresponding customer account group. If you create a partner and call up views that are relevant for processing on the basis of customer accounts, the system automatically creates an FI customer. Customer-based views: Bank details; Tax data; Control data; Account information; Account interest; Automatic payment transactions; Payment data; Dunning data.

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Create / change / displayCreate / change / display

Create / change / display in roleCreate / change / display inrole in conjunction with loan

Loans Management

Basic Functions TR-TM

PartnerPartner

Business Partners

In business partner management you can create, change and display general business partner data. You can enter a loan partner in the system in three ways: 1 Create business partner by choosing Basic Functions -> Business Partner in the application menu:

In this case, you create the partner using a grouping, without assigning an application area. You can then assign loan-specific roles and data to the partner later on.

2 Within the Loans Management component - Business Partner -> Create in Role: In this case, you first specify the application area (such as mortgage loan, policy loan or general loan), and then enter the partner role (for example, "A100" Main loan partner) in the screen that follows. If role types have been defined for a role category, the role types are displayed. If not, the role categories are displayed.

3 Within the Loans Management component - Create business partner in role when creating a loan: In this case, you enter the partner role (role type or category) when you enter the loan. If an FI customer account is required for loans in that particular status (for example, "contract"), the system creates an FI customer automatically on the basis of the default values defined in Customizing. If no FI customer is required for this loan status, the system only creates an FI customer using the default values if you call up a customer view.

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-

Business Partner Settings

Specifications

Define Default Values ... for Autom. Customer Creation

Define Default Values per Product Type ...

Assign Role Category to Application

PTyp Grp. Payee i.dcText30A Mortg.loan

Product type 30ACompany code 0001Reconcil. account 150000Payment methods 12AESU

-

Loans: Customizing for Business Partners (1)

You can define default values that are used for automatic customer creation when you create a business partner within a loan: 1. Default values for a customer created on the basis of a loan with a certain product type. Before you can post payments made to/received from a third party, you must activate the indicator Payee i.dc (Alternative payee in document allowed?). This affects disbursements to a person authorized to draw on the loan, or the direct debit of amounts due from an alternative payer. The authorization group affects access to the customer account in Financial Accounting. 2. Default values for a customer created on the basis of a loan with a certain product type in a certain company code.

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Main loan partner

Borrower

Alternative payer/ee

Person authorized to drawBusiness partner

Role categories:

. . .

Business Partners: Roles

If several partners are assigned to a loan, the system only makes customer account postings to the partner with the role "Main loan partner".

The system also creates FI customers for all other partners assigned to the loan in a customer role category, even though no postings are made to these customers for this contract. However, the system needs the master data defined for these FI customers to make the posting to the customer account of the main borrower.

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Create Partner: Application AreaCreate Partner: Application Area

Application cat.

Role types/categories

A100 Main borrowerA101 Other borrowerA102 Main lender...

0010 Mortgage loan0011 Borrower's note loan0012 Policy loan0013 General loan0015 Interested party 0016 Special arrangements

F4

Creating a Partner: Application Area

Before you create the partner data, you choose the application area for which you want to use the partner. The application area determines the roles that can be chosen in the next screen.

Example: 0010 -> Mortgage loan

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RoleC Name of role category0100...

Main loan partner

Application - Mortgage loan

-

-

Loans

Basic Settings

- Business Partner Settings

Assign Role Categoryto Application

Grouping

"Double-click"

DAR1

Loans: Customizing for Business Partners (2)

In the Loans section you define which role categories (with their corresponding role types) are available for the various applications (mortgage loans, borrower's note loans, ...). This ensures that the choice of roles is relevant for the application in question. The role "Issuer", for example, is only relevant for borrower's note loans.

In the detail screen, you define which business partner grouping should apply for the role category. The grouping contains information relating to the number range and the FI account group. It creates the link to Financial Accounting.

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Loans: Business Partner Overview

Loan 40000000

Partner listName Name / Address BnkT

Smith, 1 Main Street Customer100078

AddressDefault

Select partner (or "double-click" )

Treasury - Business Partner Management

PartnerClassification Appl. cat. Mortgage loan

Main borrower

90000001Natural person

You can either create a business partner in advance (using the general business partner management functions for Treasury or within the Loans menu), or define the business partner when you create a loan.

When you create an application, offer or contract, you can call up all the data for the borrower by choosing Partner overview.

From the partner overview, you can also branch directly to the general Treasury business partner management functions and display or change partner data in the various screens.

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Basic dataBasic data ConditionsConditions CollateralCollateral ObjectsObjects Correspon-dence

Correspon-dence

... various fields for information / reporting / automatic determination of account assignment reference Contract currencyDiscount accrual/deferralFinance projectIPD controlPlanned principle / actual principleClerk assignmentCapital amountsAdditional fieldsUser fields

Create Contract - Basic Data

The system proposes the contract currency defined in the company code-dependent settings for the product type in Customizing. If no default currency has been maintained, the system proposes the currency of the company code.

If a business partner has several loans, these can be grouped as you require. If you group several loans in a finance project, this grouping can be used for the incoming payment distribution level.

If a business partner has several loans, you need to arrange how incoming payments should be made: individually for each loan, jointly for several loans (per finance project), or for all loans (at customer level).

You can define the additional fields yourself and use them for drilldown reports. The other references and user fields are displayed for information purposes. You set up the user fields in Customizing.

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Loan type

Loan purpose

Maturity

Loan category

F4

Customizing Loans Master data

Customizing: Basic Data (1)

The screens for entering an application, contract offer, or contract are identical. You can use field selection to define for each status which fields are displayed or hidden and which entries are required or optional.

For many of the fields in the basic data screens, you can call up possible entries using the F4 key. Most of the proposals reflect settings you can make yourself in the Implementation Guide (IMG), such as the loan type or the purpose of the loan.

You define the default values in the IMG under Loans -> Master Data.

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Loans

+

+_

Basic Settings

Transaction Management

Master Data

Basic Settings

__

Contract Acceptance/Notice

_

_

_

_

_

_Agent Data

_ Indicators

Branch offices

Regions

:

Branch offices

Regions

:

Balance sheet indicators

Special posting treatment

:

Balance sheet indicators

Special posting treatment

:

Loan type / loan class

Purpose of loan

Maturity

Loan type / loan class

Purpose of loan

Maturity

Offer acceptance types

Reasons for non-acceptance

:

Offer acceptance types

Reasons for non-acceptance

:

Customizing: Basic Data (2)

You make the settings for the application, offer and contract basic data screens using the IMG activities in the Master Data section.

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Interest calculation capital

TimeRepayment:

debitposition

Repayment:incomingpayment

Key:

Planned principleActual principle

Basic Data: Planned/Actual Principle

Indicator: Planned principle / actual principle: This indicator controls which repayment flows in the cash flow reduce the interest calculation capital: Planned principle: The reduction in the interest calculation capital is calculated on the basis of the posted and planned debit positions as at the repayment settlement date.

Actual principle: The reduction in the interest calculation capital is calculated on the basis of the posted incoming payments for the repayments in conjunction with the planned repayment debit positions as at the repayment settlement date.

The two variants of the actual principle (1 and 2) differ in the way principle and interest payments are calculated for annuities and in the way payments are considered for future calculation periods. If a payment is delayed or reduced, and you use actual principle 1, the payment instalments for annuities remain constant. If you use actual principle 2, the delay or reduction leads to a change in the payment instalment (see F1 Help).

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Customizing:

Activity type Role category Clerk as business partner

Activity type Clerk/team in Customizing

2.

1. Field selection control for clerk fields in the basic data

Application: Loan contract no. 10000007

Activity type

P

D...

Clerk

P

D

Basic Data: Clerks

For information purposes, you can enter the name of the responsible loan clerk or team in the loan. The rollover function is a special case. You must create your rollover clerks as business partners with the role category "0991 Loan rollover clerk". There is a fixed link in the system between this role and the activity type "P - Rollover".

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Contract capitalReductionCurrent contract capitalCommitment capital

Value-dated capitalEffective capitalDisbursement commitmentRemaining capital debit positionNominal remaining capital

Contract capital originally agreed

Total partial waivers

Contract capital ./. reduction

Capital of current fixed period

(see condition header)

Total disbursements with capital transfers

Value-dated capital ./. repayments

Current contract capital ./. value-dated capital

Value-dated capital ./. (all) repayments

Debit position for the remaining capital without

price gains and discount (relevant for borrower's

note loans with net posting)

Basic Data: Capital Amounts

The capital amounts in the basic data are always based on posted and protected flows. You can select the flows to be included in the calculations for the capital amounts by choosing the Cap. amnts button. In the dialog box, select the relevant flow and choose Calculation parameters. All flows takes all the records: planned records, actual records, protected records, simulated records and records still to be released.

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Loan basic dataLoan basic data

Condition header

Cash flowCash flow

Condition items

Planned records

------------------------------------------------------

Condition Structure

The condition structure in the Loans area is based on the central condition concept.

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Loan contractLoan contractLoan contract

Annuity repmntfrom 05/01/YY 4.0%

Condition items

Condition header

Interestfrom 05/01/YY6.0%

Interestfrom 05/01/YY+35.5%

Fixed periodfrom 05/01/YY

04/30/YY+3

Fixed periodfrom 05/01/YY+3

04/30/YY+6

Chargesfrom 05/01/YY USD 100

Condition Header / Condition Items

The combination of the condition header and the condition items offers a high degree of flexibility when you set up the loan conditions.

The condition header contains date details (such as Fixed until) as well as information relevant for all items (such as Disbursement rate, Effective interest rate or Effective interest method).

Each condition item contains information relating to that particular condition type (such as nominal interest). You assign an effective period to each individual condition item. This allows you to represent conditions that change within the fixed period (example: an interest rate that changes annually for a fixed period lasting several years).

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Correspon-dence

Condition header:

- Commitment capital- Disbursement rate- Repayment type (instalments, annuity, full repayment upon maturity)- Start of term / end of term- Fixed from / fixed to- Effective interest method (PAngV, Braess ...)- Interest calculation method- Calculation buttons (end of term, instalment, interest, capital, effective interest, ...)

Contract - Condition Header

The condition header contains the basic condition data for the loan, including: Term start / Term end: Term of the loan Disbursement rate: Consideration of a premium or discount Repayment type: The following repayment types are supported: Full repayment upon maturity, annuity repayment (fixed payment instalment), instalment repayment (falling repayment instalment), imputed annuity (partial disbursements and unscheduled repayments are not considered in the annuity calculation).

Fixed from / fixed until: The period for which the first set of conditions applies ("fixed period" for the condition). The fixed from / fixed until period can be shorter than or the same as the loan term.

Select the appropriate effective interest method from the possible entries. Select the appropriate interest calculation method from the possible entries. The method in the condition header applies for all the condition items that have no specific calculation method entry (see F1 Help with examples).

If you have made all the required entries except for one, you can let the system calculate the last value. For example, if you have already entered the term, interest rate and repayment parameters, the system will work out the repayment instalment.

You can calculate up to three effective interest values: Effective interest rate, internal effective interest rate and an alternative effective interest rate for comparison. For each individual effective rate you can specify a different yield method and define in Customizing which flow types are relevant for the calculation.

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PeriodsPeriodsPeriods

Condition item

Nominal interest rate 5%

% or amount% or amount% or amount

Example: Nominal interest

Example: Effective from

MM/DD/YYYY

Example: 5%

Condition typeCondition typeCondition type

Contract: Conditions

Eff. from MM/DD/YY

A condition is usually characterized by an amount or percentage rate in conjunction with a date.

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Correspon-dence

Condition items:

For each condition type (fixed nominal interest / instalmentrepayment / charge ...):

- Effective from- Percentage rate or amount- Calculation date- Due date- Exact payment form- ...

Contract - Condition Items

You enter the individual conditions as condition items. The calculation date relates to the calculations in financial mathematics. In the case of an interest condition, for example, this would be the last interest date for the corresponding interest period.

The due date is the date on which payment is due. The exact payment form is the combination of the payment form (at the start of the period, mid-period, at the end of the period) and the frequency in months (monthly, quarterly, six-monthly ...). It therefore tells you exactly up to when the amounts have been calculated and when they are due.

You can enter all the data for the condition items manually, or enter certain "initial values" and let the system fill in the remaining fields. To use the latter option, you must specify the commitment capital, the effective period for the condition, the percentage rate or amount, and the exact payment form (or payment form and frequency).

The effect of a condition item depends on the Effective from date in conjunction with the calculation category defined (via the flow type) in Customizing. Nominal interest, for example, is not due until the first value date.You can also make the condition calculations dependent on certain events. Example: Charge a processing fee for each partial disbursement (see the documentation for the exact procedure).

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Condition Items - Fields

Condition itemsCond.type text

Nom.interest

Ann. repmnt

Eff. from Percent Amnt Curr.Lvl IS PF PE Frq Due onEDCalc.date MCCal

05/01/YY 6.0000 UNI 3 VN 3 06/30/YY 06/30/YY

305/01/YY 4.0000 UNI VN 3 06/30/YY 06/30/YY

... ... ... ... ... ... ...... ... ... ...

Explanation of field names: Lvl: Level number of condition items for recurring condition types IS: Immediate settlement PF: Payment form (at start of period, mid-period, at end of period) Frq: Number of months in period PE: Payment form - exact day (with adjustment days) ED: End-of-month indicator for due date MC: End-of-month indicator for calculation date CR: Calendar rule. You can use the calendar rule to shift a public holiday, Saturday or Sunday to a working day. This is not usually applied to the calculation date (the interest calculation does not depend on whether the day is a working day), but is relevant for the due date (payments can only be made on a working day). Example: Due date 01/01/YY (relevant for calculating the capital amounts), shifted using the calendar rule to the next working day 01/03/YY, referred to as the payment date (relevant for processing in accounting).

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Condition type 1

PF PE Frq Due on Calc. dateEff. from Percent

04/01/YY 5 05/15/YY 06/30/YY

One-time payment: Interest 04/01/YY - 06/30/YY, due on 05/15/YY

Condition type 2 04/01/YY 5 3 05/15/YY 06/30/YY

Regular payment: Interest calculated quarterly to the end of the quarter,due at the middle of each quarter

04/01/YY - 06/30/YY, due on 05/15/YY07/01/YY - 09/30/YY, due on 08/15/YY10/01/YY - 12/31/YY, due on 11/15/YY......

or

Condition Structure: Frequency (1)

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Time(month)

01 02 03 04 05 06 07 08 09 ...

Example: Eff. from: 03/15/YY Frequency: 03Calculation date: 05/10/YY

Due on: 06/30/YY

Cash flow: Interest 03/15/YY - 05/10/YY, due on 06/30/YYInterest 05/11/YY - 08/10/YY, due on 09/30/YYInterest 09/11/YY - 11/10/YY, due on 12/31/YYInterest 11/11/YY - 02/10/YY+1, due on 03/31/YY+1....

Condition Structure: Frequency (2)

Calculations for financial mathematics (FiMa) start on the Effective from date. The last date up to which FiMa calculations for the (first) period are made is referred to as the calculation date.

The recurring periods for the FiMa calculations are determined by the calculation date in conjunction with the frequency. The calculation starts on the Effective from date of the first period.

The due date tells you when the amounts calculated are due, and reflects the accounting viewpoint. It is used in conjunction with the frequency to calculate the recurring due dates.

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Condition type 1

Condition type 1

Condition type 1

Condition type 2

Condition type 3

Eff. from Percent

04/01/YY 5

04/01/YY+1 6

10/01/YY+3 7

04/01/YY ...

04/01/YY ...

Interest:04/01/YY - 03/30/YY+1: 5 % p.a.

04/01/YY+1 - 09/30/YY+3: 6 % p.a.

10/01/YY+3 - "Fixed until": 7 % p.a.

Condition Structure: Condition Types

You can enter the same condition type for different effective periods. Each condition entry applies from the Effective from date up to the next Effective from date of the same condition type, or the end of the fixed period.

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Int. rateadjustment

Int. rateadjustment

Repaymentsettlement

Repaymentsettlement

ChargesCharges

Variableinterest

RepaymentRepayment

Fixedinterest

Condition Types

The conditions are structured modularly. On the one hand, this means that you can define the structure of a loan for any number of periods. On the other hand, because each condition component is represented by its own condition type (such as interest settlement, repayment settlement, interest rate adjustment), you can combine the various condition types flexibly to map individual loan conditions.

For certain condition types you must enter a "related" condition type to specify the details. For fixed interest conditions, one condition type is sufficient. For floating-rate conditions, you need two condition types. The condition type "variable interest" includes details about the reference interest rate and the calculation date. You use the condition type "interest rate adjustment" to define when the interest rate should be fixed and from when the new rate applies.

The same applies for the condition type "repayment". This condition type includes details about the repayment amount or percentage rate and the calculation date. You also need to define when the interest calculation capital is reduced to reflect the repayments. For example, you might arrange monthly repayment with half-yearly settlement: In this case, the customer makes repayments on a monthly basis, but pays interest on the same capital amount for six months. After six months, the repayments are "settled" - they are deducted from the interest calculation capital, which in turn reduces future interest payments. You must enter the details for the repayment settlement using a separate repayment settlement condition type. The only exception is when you opt for immediate settlement (the interest calculation capital is reduced immediately on the repayment date). In this case, it is sufficient to select the IS field for immediate settlement, without entering details for repayment settlement in a separate condition type.

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Condition itemsCF

1.1.2.2.3.3.

Zero conditionZero conditionFixed conditionFixed conditionStatistical conditionStatistical condition

Condition Form

You can use the Condition form (CF) field in the condition item to control the effect of a condition. If you choose the entry "Zero condition", the system only allows you to enter an amount or percentage rate of zero for that condition type. This is relevant when you have arranged to suspend repayments (repayment amount = 0). "Fixed condition" means that the condition item is not recalculated for an alternative effective interest rate or term end. If a condition item is fixed, its values are not changed for the FiMa calculations.

A statistical condition is an inactive condition item that does not generate any flow records. This condition form is only used for information purposes.

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Condition OverviewCondition Overview

Items

Nominal interest

"Double-click"on relevant item

Detail screen Detail screen

Condition Items - Detail Screen

In the condition detail screens for the respective condition items you can enter additional data and make changes to existing entries.

(C) SAP AG AC815 4-50

© SAP AG 1999

Condition Items - Detail Screen

CoCdLoanCond.type 201

Mortgage loan Contract000140000000

A_Nominal interest

30A

Ref.int.rate

Posting control 1 Automatic debit position

Eff. from 05/01/YY

FormulaInt. calc. method

BerechnungstagFälligkeitstagZahlungstag

No shiftIncl.

Calendar 01Calculation date

Regular 3 months1st date

Data for percentage calculation

Due dateRegular 3 months

1st date Incl.No shift

Amounts

Dates

Payment data / Other

If the loan has a variable or formula-based interest rate, you enter the reference interest rate or formula in the detail screen. You can also map "composite" interest rates, such as "EURIBOR + 5%" or "EURIBOR - 0.5%".

You can specify individually which loan partner will pay the amounts for each condition item. For example, if a third party pays the interest, you assign this person to the loan as an alternative payer. You can then enter this partner as the payer in the condition detail screen. (Prerequisite: In the business partner master record of the main borrower, you must set the Payee in document indicator to active.)

Posting control: For each condition item, you can define whether the planned records for the conditions can only be posted automatically (Post Planned Records) or only manually (Post Individual Records).

In the detail screen, you also enter the calendar to be checked by the calendar rule.

(C) SAP AG AC815 4-51

© SAP AG 1999

InterestRepayment

05/01/YY05/01/YY

6%4%

33

Cash flow - Planned records

. . . . . . . . .

Calculateyield

Interest /repaymentschedule

FlowsFlows

Planned Records

On the basis of the conditions, the system generates flows. Initially, these flows are created in the form of planned records.

The planned records are used to generate the cash flow for calculating the yield. A key element of the cash flow is the interest and repayment schedule.

The cash flow, the interest scale for the effective interest calculation, and the interest and repayment schedule are calculated on the basis of the fixed period for the conditions. If no Fixed until date has been entered for a condition, the system generates the cash flow up to the specified Term end (but only for a maximum of 20 years).

(C) SAP AG AC815 4-52

© SAP AG 1999


Due on 05/01/YY06/30/YY06/30/YY09/30/YY09/30/YY12/31/YY12/31/YY03/31/YY+103/31/YY+106/30/YY+106/30/YY+109/30/YY+109/30/YY+112/31/YY+112/31/YY+103/31/YY+203/31/YY+2

Settlement amnt100,000.00

1,166.671,333.331,726.672,000.001,691.672,000.001,656.672,000.001,621.672,000.001,551.672,000.001,516.672,000.001,481.672,000.00

Curr.UNIUNIUNIUNIUNIUNIUNIUNIUNIUNIUNIUNIUNIUNIUNIUNIUNI

Name P

PPPPPPPPPPPPPPPPP

FType00010110012001100120011001200110012001100120011001200110012001100120

A_Loan disbursem.A_Interest deb. pos.A_Instalment repmtA_Interest deb. pos.A_Instalment repmtA_Interest deb. pos.A_Instalment repmtA_Interest deb. pos.A_Instalment repmtA_Interest deb. pos.A_Instalment repmtA_Interest deb. pos.A_Instalment repmtA_Interest deb. pos.A_Instalment repmtA_Interest deb. pos.A_Instalment repmt


Correspon-dence

Loans - Cash Flow

On the basis of the conditions belonging to a financial transaction and the specified calculation period, the function modules for financial mathematics for the relevant application (such as stock purchase, swap, loan contract) calculate a series of payment flows for the transaction. This series of flows is referred to as the cash flow.

The cash flow for financial transactions is used as the basis for all trading, transaction and position management processes, as well as for the evaluation activities within Treasury. Processes based on the cash flow include: - Effective interest calculation - Posting - Accrual and deferral of expenses and revenues

The cash flow display is linked to the ABAP List Viewer. Flow types explain the different changes to the cash flows. Together, all the transaction flows form the basis for generating the cash flow and for subsequent activities, such as posting. The cash flow contains all the flow records in chronological order and is used to update the transaction data in Financial Accounting, Cash Management, and Market Risk Management. Typical flow types are fixed or floating interest, increases in nominal amounts, or commission.

(C) SAP AG AC815 4-53

© SAP AG 1999

IDES Corp.

AIBD/ISMA Braeß Moosm. PAngV

Scaling period 05/01/YY to 04/30/YY+ 5Contract No.: 10000000

Effective interest: 6.71156

Page 1

% PANGV

ValueDte

05/01/YY05/01/YY06/30/YY06/30/YY09/30/YY09/30/YY12/31/YY12/31/YY12/31/YY03/31/YY+103/31/YY+105/01/YY+106/30/YY+106/30/YY+1

Activity

Discount debit pos.Loan disbursementInterest deb. pos.Annuity repaymentInterest deb. pos.Annuity repaymentInterest deb. pos.Annuity repaymentProcessing chargeInterest deb. pos.Annuity repaymentInterest capitalizat.Interest deb. pos.Annuity repayment

Amount

3,000.00-150,000.00

1,500.00-1,000.00-2,235.00-1,515.00-2,212.28-1,537.72-

100.00-2,189.21-1,560.79-9,471.08 2,165.80-1,584.20-

Balance

3,000.00-147,000.00145,500.00144,500.00142,265.00140,750.00138,537.72137,000.00136,900.00134,710.79133,150.00142,621.08140,455.28138,871.08

Days

59

90

91

90

3059

90

Interest

1,616.93

2,424.55

2,387.87

2,297.03

744.701,568.76

2,330.10

Effective Calculation of Interest

The system draws on both the planned and actual records in order to determine the effective interest rate. The fundamental flow information is derived from the condition items. By determining the effective interest rate using the cash flow, the disadvantages of using a conventional solution based on mathematical formulas can be avoided. Here you are able to include various price components and/or flows (e.g. insurance premiums) in the effective interest rate calculation. You can then switch between methods and compare the different results.

(C) SAP AG AC815 4-54

© SAP AG 1999

PAYMENT SCHEDULE Loan no. 10000000

Loan partner 00

05/01/YY

Mortgage loanUNI 150,000.00Universal Currency

Loan type:Commitment cap.:Display currency:

Conditions

Nom. interest

Ann. repaymnt

Payment date

05/01/YY06/30/YY09/30/YY12/31/YY03/31/YY+1

Eff. from

05/01/YY

05/01/YY

Payment

2,500.003,750.003,850.003,750.00

Percent

6.00000 %

4.00000 %

Interest

1,500.002,235.002,212.282,189.21

Amount Frequency

Quarterly

Quarterly

Repayment

1,000.001,515.001,537.721,584.20

Calculation from:Calculation to:Start of term:End of term:End of fixed period:

05/01/YY04/30/YY+505/01/YY04/30/YY+1504/30/YY+5

First pmnt

06/30/YY

06/30/YY

Other

Int. calc. meth.

360/360

360/360 imm. settlem.

150,000.00149,000.00147,485.00147,404.48146,400.49

Rem. bal.

100.00

Payment Schedule

The system generates a payment schedule on the basis of the planned records in the cash flow. The payment schedule contains general loan data as well as the individual condition items. It lists all the payments for the fixed period, divided into interest payments and repayments, with the corresponding outstanding balance.

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© SAP AG 1999

Business partner master record: Bank details

Choose bank type/pmnt meth. for conditionChoose bank type/pmnt meth. for conditionChoose bank type/pmnt meth. for condition

ConditionNominal interest 05/01/YYConditionConditionNominal interestNominal interest 05/01/YY05/01/YY

Choose bank type/pmnt meth.BnkT PM

Entries for partner BR1 EEntries for condition BR2 U

Choose bank type/pmnt meth.Choose bank type/pmnt meth.BnkT PM BnkT PM

Entries for partnerEntries for partner BR1BR1 EEEntries for conditionEntries for condition BR2BR2 UU

Dir.debitBank type10020030 BR120030040 BR2

8765432112345678

Contract - Partner overview

Bank typeBR190000001 100000000

PME

Partner Customer

PartnerPartner bank type

Save

BR2

Payer(ee) / Payment data

Contract - Condition details

Conditions: Payment Data

Each set of bank details defined for a business partner is represented by a (partner) bank type key in the master record. The bank type you select in the loan overview and the specified payment method are default values used to make the payments resulting from the conditions.

You can, however, make alternative payment arrangements for individual conditions by entering payment parameters in the condition detail screen that differ from those entered in the partner overview.

When you save the contract a dialog box appears prompting you to check these entries. Here you decide whether the bank details defined in the partner overview or the alternative bank details in the condition should to be used for paying the condition.

(C) SAP AG AC815 4-56

© SAP AG 1999

APPLICATION LEVEL



SYSTEM LEVEL




Flow typeFlow type


Flow types explain the different changes to the cash flows. Together, all the transaction flows form the basis for generating the cash flow and for subsequent activities, such as posting. The cash flow contains all the flow records in chronological order and is used as a basis for updating the transaction data in Financial Accounting, Cash Management, and Market Risk Management. Typical flow types are fixed or floating interest, increases in nominal amounts, or commission.

Flows are generated on the basis of conditions (such as interest flows), manual entries (such as charges), accrual/deferral runs (such as interest rate accruals), or valuation runs (such as write-offs).

(C) SAP AG AC815 4-57

© SAP AG 1999

Controls accounting processing

Controls processingin financial mathematics

Example:Flow type

Flow category

Inflow

Calculation category

Inflow

A AA

Loan disbursement0001

Customizing: Define Flow Types (1)

The payment flows for the cash flow and for posting are controlled by two indicators that must be assigned to each flow type. The calculation category controls how the flow is processed by the financial mathematics modules that generate the cash flow. The flow category controls how the flow is posted.

Each flow type is assigned to exactly one flow category. However, several flow types can be assigned to the same flow category. For example, the flow types for fixed interest and floating interest are assigned to the flow category "interest".

Examples of flow categories include accounting flows, such as inflow (for example, a security purchase), outflow (for example, repayment), expense or revenue. Flows relevant for generating the cash flow include security purchase/sale, interest, repayment, or charges.

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© SAP AG 1999

Customizing: Define Flow Types (2)

Flow type

Flow categoryCalculation cat.

InflowInflow

Assets/Liab. Loans given

Posting controlIncoming payment

Relevant to CM

0001 A_Loan disbursement

AAA

0

Payment requestIndividual payment

Payment details

Direction

Grouping

Posting

A flow type can either be used for loan assets (loans given) or loan liabilities (loans taken). If you want the amounts for a flow type to be transferred to Cash Management, you must set the Relevant to Cash Management indicator.

You can only use the payment details for loans that are not posted to customer accounts. If you want payment details to apply for a flow, you must specify the direction when you make the settings for the flow type. If you enter a direction, the system takes the values in the related fields into account: Payment request indicator (PR): Active = PR allowed, inactive = PR not allowed Individual payment: If the Payment request indicator is set to active, and you activate the Individual payment indicator, the system does not allow payment netting.

(C) SAP AG AC815 4-59

© SAP AG 1999

Payment date

05/01/YY

05/01/YY

. . .

Settlem. amnt Name

Loan disbursement

Discount debit pos.

P FType

P 0001

P 0165

Cash flow

3,000.00

150,000.00

Cash flowCash flow

Assign Flow Types to Flow Category

CGr

1

FTyp1

0165

FTyp2

0170

FCat

TA

Name

Disc.debit pos.

Name

Prem.credit pos.

CustomizingCustomizing

Flows are generated on the basis of conditions (such as interest flows), manual entries (such as charges), accrual/deferral runs (such as interest rate accruals), or valuation runs (such as write-offs).

The system calculates condition-based flows directly and inserts them in the cash flow. In order to include the flows that are not generated by conditions in the cash flow, you must assign the corresponding flow types to the flow category. You create the link to the product type indirectly via the condition group.

(C) SAP AG AC815 4-60

© SAP AG 1999

APPLICATION LEVEL



SYSTEM LEVEL




Flow typeFlow type


In the SAP Treasury system, financial transactions are mapped using conditions and flows. Conditions are components of the transaction contract. You can define your own condition types, for example different forms of interest, dividend and repayment. You assign each condition type to a product type (via the condition group). This ensures that every product type has the appropriate structure characteristics. Condition types therefore control which structure characteristics are displayed when you create transactions for a specific product type.

To simplify the procedure, related condition types are grouped in condition groups, and the condition groups are assigned to the product types.

On the basis of the conditions, the system automatically generates flows that appear in the cash flow. You therefore need to assign flow types for generating the cash flow to the condition types. Example: In the case of the product type "30A Mortgage loan", the system generates the interest amount on the interest due date on the basis of condition "201 Nominal interest". The flow type "0110 Nominal interest" is assigned to the condition "201 Nominal interest".

(C) SAP AG AC815 4-61

© SAP AG 1999

Define condition types

Define condition groups

Assign condition types to condition groups

Assign flow type to condition group perapplication function

1.1.

2.2.

3.3.

4.4.

Customizing: Conditions

(C) SAP AG AC815 4-62

© SAP AG 1999

CTyp Name RefC FTyp1 FTyp2 FCat FiMa Payt

Field selection

200 A_Nom.interest var.201 A_Nom. interest fixed209 A_Int.rate adjustment212 A_Processing charge261 A_Annuity repayment262 A_Instalm. repayment

...

01100110

200314501250120

TZ TZTZZFTB TB

TTANTTRA

TZZA

TTANTTRA

Customizing: Condition Types

The main task of conditions is to generate flows automatically. You therefore need to assign flow types for generating the cash flow to the condition types. Note that some condition types do not generate flows (for example, interest rate adjustment or repayment settlement).

For some condition types, you must specify a reference condition type for processing in the cash flow. When you define these condition types, you must enter the corresponding reference condition type in the RefC field (for example, interest rate adjustment).

If the Payment activity (Payt) indicator is set to active, flows for this condition can be posted to a customer account or to a G/L account. In this case, the setting for the product type (FI posting 3 or 4) is decisive. If the Payment activity indicator is not set, flows for this condition are never posted to a customer account.

You can influence what appears on the entry screen for the various condition types by using field selection control (fields: suppress, required, optional, display).

(C) SAP AG AC815 4-63

© SAP AG 1999

CGr Name Ass/Lia

1 Mortgage loan given

2 Borrower's note loan

3 Policy loan given

4 General loan given

504 Loan taken...

0

0

0

0

1

Customizing: Condition Groups

In this step you define the condition groups you require. You assign the appropriate condition types to these condition groups, and then assign the condition groups to your product types. To assist you, the condition groups for loans given / loans taken (assets/liabilities) are named accordingly.

(C) SAP AG AC815 4-64

© SAP AG 1999

CGr Name CType Name

1 Mortgage loan 200 A_Nom.interest var.1 Mortgage loan 209 A_Int.rate adjustment1 Mortgage loan 212 A_Process. charge1 Mortgage loan 261 A_Annuity repayment1 Mortgage loan 262 A_Instalm. repayment1 Mortgage loan 271 A_Ann. rep. settlem.1 Mortgage loan 272 A_Inst. rep. settlem.

..

....

..

....

DoubleDouble--click Detailsclick Details

Customizing: Condition Assignment

You assign appropriate condition types to each condition group. You can make detail settings for each condition type in relation to a particular condition group.

(C) SAP AG AC815 4-65

© SAP AG 1999

Sequence no. 1Hierarchy Hide

Int.calc.methodPmnt methodIncoming pmntPosting control

Calendar rule

Inclusive ID

Calendar rule

Due date meth.

Pmnt formCalendar

Condition form

Month-end calc. Month-end1

1

01

No shift No shift

Regularly with fixed dates

Field control

Default valuesBasic data Payment data / Posting

Calculation date Due date

Other data

200 A_Nominal interest var.1Condition group

Condition type

Customizing: Assign Conditions -> Details

In the detail screen you define the sequence of the condition types within a group. If you set the Hide indicator, this condition type does not appear on the screen automatically when a loan is entered. If necessary, however, the user can add this condition to the list of condition items manually. Example: You usually need to enter an interest rate condition for a loan. By contrast, a processing charge is optional. This condition type should only be included if you intend to charge processing fees (suppress condition type "processing charge").

You can define default values for each condition type (per condition group). These default values appear as proposals when you enter the conditions in the contract. Example: You want to shift dates to working days. You can make the relevant entries in the application by entering the calendar rule in the condition overview and the corresponding calendar in the condition detail screen. To simplify data entry, you can define default values for the calendar rule and calendar in Customizing.

(C) SAP AG AC815 4-66

© SAP AG 1999

Application:

- Company code- Product type

Product category Condition group

Condition types

Flow types

Flow category Calculation category

Create loan (Application, offer, contract)

Customizing:

Application: Cash flow

Other flow types

Conditions: Summary

When you create a loan, you must specify the company code, product type, business partner, and (if you have opted for external number assignment) the loan number.

The system applies the Customizing settings for the product type chosen by the user.

(C) SAP AG AC815 4-67

© SAP AG 1999

Exact Payment Form

PE

JMJNJVMM:

Name

Mid-yearYearly at end of periodYearly at start of periodMid-month - 1 day:

Nominal interest

Curr.

Calc. date

Effective from

Lvl

05/10/YY

Percent

PF PE Frq

10.000000

Amount

Due date ED CR

06/09/YY 06/09/YY

UB

via F4

3 MN 12

UNI

Condition item

Company code -dependent datafor product type - details

Payment form start

Payment form Start of term

Customizing: Payment Form

PE - The “Exact Payment form” (with adjustment days) is a combination of payment method (at start of period, mid-period, at end of period) and frequency in months. In order to simplify data entry you can set these short names in Customizing together with the appropriate abbreviations, for example J- yearly combined with V - start of period, M - mid-period, and N - end of period.

The company code-dependent data for the product type determines whether the payment frequency is based on calendar units or on the "Effective from date" in the condition item. Example: Nominal interest, effective from 05/10/YYYY PE: MN- Calculation date/Due date based on calendar: 05/31/YYYY- Calculation date /Due date based on condition date: 06/09/YYYY

(C) SAP AG AC815 4-68

© SAP AG 1999

TableEffective from

MORTG_01

05/01/YY

YY05 001

Rnk.

001

Fxd int.

2 J

DRate %

98.00000

Nom. int.

Repayment

6.00000

4.00000

Ref. int.

Rep.sttl.

PF

PF

PE

PE

Frq

3

3Frq

IS

IS

+/-

PF

EIM

1

PE

ICM

Frq ISX

Variants

Contract: ConditionsContract: Conditions

Items

Nominal interest

Annuity repayment

6.00000

4.000003

3

X

X

Condition table

1

05/31/YYEffective to

New Business Table

You can define conditions in advance in a new business table. This table can then be used to fill the condition items for a contract automatically. Condition tables prevent data entry errors and simplify subsequent processing of the loan.

When you create the loan, choose Condition table and select the table you require with the relevant condition variant. You can only use a table if the Fixed from date of the loan falls within the effective period of the table.

(C) SAP AG AC815 4-69

© SAP AG 1999

Sample loan


Reference data

Sample loan no.Partner

0001/ intern /30A

Create Loan: Initial Screen

There are three alternative ways of creating a loan (application, offer, contract): 1. Fill all the master data fields manually. 2. Transfer the data from a sample loan. You create a sample loan using the Sample loan

function. The data is entered in the same way as for a "standard" loan, but without a business partner. If you want to use a sample loan to create a new loan, you enter the corresponding data in the Reference data section.

3. Copy data from a "standard" contract created previously. Choose Copy from ... . A dialog box appears prompting you to enter the contract from which you want to copy the data.

(C) SAP AG AC815 4-70

© SAP AG 1999


Correspon-dence

Interest certificateKey dateProcessing type

Generate int.cert. in annual batch

ManDunnLvlDunning per

No dunningLoan contract

Dunning history

D.area D.level Last dunn.

Key dateGeneration frequency

Generate upon requestStatement number 0

External account statementDunning

Contract - Correspondence

On the Correspondence tab, you can enter loan-specific data for the dunning procedure. The dunning history tells you about past dunning activities and the current dunning status. In this screen you can also enter instructions for creating and sending external account statements and interest certificates, such as the frequency with which they should be generated, or the processing type.

(C) SAP AG AC815 4-71

© SAP AG 1999

Contract: CorrespondenceContract: CorrespondenceEdit

Loan number.:Main borrower:

10000000SmithDC 20433 Washington

LOAN CONTRACT

The lender ... shall grant John Smith a mortgage loan of USD ... under the following conditions:

Generate correspondence

Correspondence activity

Lang.

EN

EN

CA

2920

1060

Name

Ext. account statement

Mortgage loan contract

Contract - Generate Correspondence

You can trigger individual correspondence from the loan (application, offer, contract). The documents are defined in Customizing and grouped into correspondence activities.

Mass processing for correspondence is supported by the process management functions.

(C) SAP AG AC815 4-72

© SAP AG 1999

Define Correspondence Activities

DGrp

DARVLetter nameCONTRACT.MORTGE

Letter description

Mortgage contract

CA

1010:1060

Name of correspondence activity

Mortgages: Interested party processing

Mortgages: Contract processing

Code

Mortg.

Corr. act. Corr. act. name

CA

1060

SNo

5

ROri

0100

RType

0100

Letter nameCONTRACT.MORTGE

Letterdescr.

Mortgagecontract

+

Loans_

++

Correspondence

Functions_

Assign Transactions to Correspondence Activities

Assign Documents to Correspondence Activities and Roles

Define Documents

_

1060 Mortgages: Contract processing

Define CorrespondenceClasses

Assign Function/Program to Correspondence Activities

Assets/Liab. 0Details

Customizing: Correspondence - General

You define your standard letters for the loans area in the IMG step Documents, and assign each letter to a document group (such as "DARV"). You can define as many letters as you want in each document group using SAPscript.

You define business activities for which you want to generate correspondence. Examples of correspondence activities: offer processing, contract processing.

You then link these correspondence activities to the corresponding transactions or programs. Example: Assign correspondence activity "contract processing" to the code for Change Mortgage Loan Contract. For transactions, use record type 1 (transaction code - correspondence activity). For functions/programs, use record type 3 (function code/program - correspondence activity).

At the end, you specify which documents should be generated for which correspondence activities. This is also where you define the recipient of the correspondence: The original is sent to the contract business partner that has the role type defined in the field ROri. A copy is sent to the business partner with the role type defined in the field RType. If the role types are identical, the system only generates one letter. You must specify whether the entry applies for loans given or loans taken (asset/liability).

In Customizing, you can define correspondence classes. These are entered in the detail screen for a document. If the user selects a correspondence class in the business partner overview for a loan, documents in this class are excluded for this partner for this particular loan.

(C) SAP AG AC815 4-73

© SAP AG 1999

Functions_

_

_ Correspondence

External Flow Types

Define External Flow Types

Assign External Flow Typeto Report Category

Assign External Flow Type to (Internal) Flow Type

EFTyp

100

101

Name

Principle change

Disbursement

Dependent on company code and language

EFTyp

100

300

Name

Principle change

Interest

Dependent on company code and report category

RCol

1

Dis

1

FTyp

0001

2001

Name

Loan disbursem.

Interest IP

Dependent on company code and report category

EFTyp

100

300

Name

Principle change

Interest

Customizing: Correspondence - External Flow Types

In order to generate a payment schedule, account statement or interest certificate, you must define and assign external flow types (in addition to the other word processing settings).

You use external flow types to explain the flows that are visible to the recipient of the document. In Customizing you define which internal flow types are behind an external flow type. You can group several internal flow types into one external flow type.

The advantage of external flow types is that several similar internal flow types can be displayed as one item with a description that is meaningful to the recipient (the external flow type).

(C) SAP AG AC815 4-74

© SAP AG 1999

Enter a loan given with different condition structure variants (such as fixed interest, variable interest, suspended repayment)

Make the system settings for representing the product types you require with the corresponding conditions


Loan Contract: Unit Summary

(C) SAP AG AC815 4-75

Loan Contract Exercises

Unit: Loan Contract

At the conclusion of these exercises, you will be able to:

• Create an assigned loan with different sets of conditions in the system

• Configure the system such that you can reflect the required product types with the corresponding condition types, and generate correspondence.

1 You want to create a new product type for a new loan to be entered.

1-1 The product type is a specification of the product categories assigned by the system. You cannot change the product categories.

Create a product type with the name 9XX (XX = Group ID) with the following characteristics:

• Product category: 300

• Asset/liability: 0

• Condition group: 1

• Limit group: 301

• Interest per disbursement:

• Collateral active:

• Objects active:

(C) SAP AG AC815 4-76

1-2 Make the following company code-dependent settings for your product type:

• Number range: 01 (internal)

• Sample recNoRg: MU

• CM period: 4

• Dunning block: A

• FI posting: 3 (actual records in Treasury)

• Discount limit: 0.2000

• Ref. management: 2

• Dunning active:

• Dec. active:

Defaults:

• Currency: UNI

• Int. Vdate incl.:

• Withhold. disb.:

1-3 To simplify the procedure, only certain fields should be ready for input dependent on the company code and product type. Set the field selection (required entry or optional fields) for the following areas:

• Basic data classification basis

• Basic data grouping basis

• Basic data inter. calcul. basis

• Basic data evaluation information

• Conditions basic data

• Conditions contract eff. inter.

(C) SAP AG AC815 4-77

1-4 Create the required status "60" (contract).

Enter the following criteria:

• Internal level 35

• Document group 3

• Generate cash flow in contract

• Alternative field selection

• No alternative field selection (do not select)

1-5 Only permit "contract" status 60 for your product type 9XX. Permit changes to the status.

2 As a result of a change to the loan contract you created, you want to set up special charges in the amount of 400 UNI, due at the end of each year.

2-1 Define the flow type "SXX" (special charges XX). To do so copy flow type 3145 (processing charge).

2-2 Create a condition type 9XX , assigning flow type SXX.

2-3 Set the field selection for the conditions such that all fields are optional fields.

2-4 Assign this condition type to condition group 1 (mortgage loan assignment).

2-5 Enter this condition in the contract with a "Effective from" date of the start of the next year.

(C) SAP AG AC815 4-78

Loan Contract Solutions

Unit: Loan Contract


• Create an assigned loan with different sets of conditions in the system

• Configure the system such that you can reflect the required product types with the corresponding condition types, and generate correspondence.

1 Define product type PXX.

1-1 Select the following in Customizing:

→ Treasury

→ Treasury Management

→ Loans


→ Product Types

→ Define Product Types Create product type 9XX.

Use the name specified in the exercise for your product type; the name affects further settings in Customizing.

1-2 Carry out company code-dependent adjustments to the product type via:

→ Treasury


→ Loans


→ Product Types

→ Company Code-Dependent Settings for Product Type

(C) SAP AG AC815 4-79

Use the settings specified in the exercise; these form the basis of later exercises.

1-3 Select the product type you created and then select Field selection to go to the

field selection control. Select the field groups specified and set all fields to optional or required entry status. Make a note of the fields required for processing the contract further.

Set the fields as optional or required entry fields. (Maturity in "Basic data grouping basis", should be a required entry field. In the "Basic data: Interest calculation", set the control for the planned principle to Display).

1-4 Define the statuses for the product types under:

→ Treasury


→ Loans


→ Product Types

→ Company Code-Dependent Settings for Product Type (Select an entry).

→ Define Status per Product Type

For status 60 (contract), refer to internal level 35, and enter the details from the exercise.

1-5 Set up the permitted status transfers under

→ Treasury


→ Loans


→ Product Types

→ Company Code-Dependent Settings for Product Type

(C) SAP AG AC815 4-80

→ Define Status Transfers per Product Type

Prev.

status Status name New

status Status name

0 60 Contract 60 Contract 60 Contract 2 Create the condition "Special charges XX".

2-1 Copy flow type 3145 via

→ Treasury


→ Loans


→ Flow Types

→ Define Flow Types

Select flow type 3145 and then use the copy function.

2-2 Define condition type 9XX in the IMG under

→ Treasury


→ Loans


→ Condition Types

→ Define Condition Types

Select "Special charges" as the name for the condition type and assign the flow type SXX that you created as flow type "BART1".

2-3 Select the new condition type, and by selecting

Field selection, go to the field selection control. 2-4 Assign the condition type created to condition group 1.

→ Treasury


→ Loans

(C) SAP AG AC815 4-81


→ Condition Types

→ Define Condition Groups

Select condition group 1 and then, by double-clicking Assign condition types to condition group, select the entry screen for the assignment. Here, for example, you can enter default values.

2-5 Enter a new condition in the contract:

→ Accounting

→ Treasury

→ Loans


→ Contract

→ Change Go to the loan conditions.

When you select Insert additional items, a dialog box appears where you can select conditions. Select the condition type "Special charges XX" and enter the information specified in the exercise.


© SAP AG 1999

Carrying out disbursement

Integration: Loans Management --> Financial Accounting

Integration: Loans Management --> Cash Management

Customizing:

- Accounting and product type/status/flow types/conditions

- Account assignment reference- Account determination- Integration with Cash Management

Contents

Disbursement


© SAP AG 1999

Disburse a loan that has been entered, that is, post the loan

Configure the system in such a way that posting transactions can be carried out correctly


Disbursement: Unit Objectives


© SAP AG 1999


Payments due

Closing operations

Rollover



Disbursement

Course overview


Loan contract



© SAP AG 1999

You want to disburse your loan.

Disbursement: Business Scenario


© SAP AG 1999

- Create loan- Business partner- Conditions- Correspondence- Disburse/post loan- Integration with CM- Integration with FI

InterestedInterested ApplAppl. Offer Contract . Offer Contract Disburse- Other RolloverOther Rolloverpartyparty ment activitiesactivities

Transaction management Portfolio/Accounting

Mortgage Loans: Processing Seq./Contract


© SAP AG 1999

Disburse Contract: Settlement

Create Disbursement: Basic DataCreate Disbursement: Basic Data


CoCdLoan

Flow typeTextPayment dateIntValDateWithhold up toPosting control CustomerPayment methodPartner bank typeHouse bank

A_Loan disbursement

Capital dataCurr. contract cap.Nominal capitalDisbursement in %Gross payment amntNet payment amnt

Disbursement rate

Mortgage loan000110000000

30A

0001

05/01/YY05/01/YY05/01/YY

150,000.00 UNI0.00

100.0000 150,000.00 UNI

98.00000

146,500.00

Automatic debit position

Incl.

KB1

Brown / 1 Main Street / Washington DC 20433

1000782 Bank transfer with individual payment

If you want a specific text to appear on the payment medium, enter an asterisk (*) at the start of the text field. Example: "* Partial disbursement as agreed per telephone"

If you select the Withhold up to field, all of the condition-based planned records in the contract that are due by the date specified are selected, and - as long as the withholding indicator has been set for these records - they are withheld from the disbursement amount. The records selected are listed on a second screen, the Incidental Costs screen.

The following applies for each loan contract: Only one disbursement can be entered for each payment date. You cannot create a disbursement with a payment date earlier than the last existing disbursement. If you have created several partial disbursements, you can only change the last disbursement entered.

You can enter an unlimited number of partial disbursements with "Plan" status. You can only have one disbursement with the status "To be released"; additional disbursements can only be carried out once an existing disbursement has been released.


© SAP AG 1999

Disburse Contract: Incidental Costs/Withholding

Create Disbursement: Incidental CostsCreate Disbursement: Incidental Costs

Capital amountsAvailable capital Value-dated capital

Flows

Flow Name

Company codeLoans

0001 30A10000000

Due on WithholdSettlement amount

Pmntmeth.

150,000.00 150,000.00

......

3145 Proc. charge. deb.pos. 05/01/YY 500.00 X

0165 Discount debit position 05/01/YY 3,000.00 X

In Customizing, you can control which flow types can be processed for the disbursement. You can withhold the incidental costs that you enter here. This means that they are deducted from the disbursement amount (flag: W/H). Alternatively, you can post the incidental costs. If you want to trigger the payment of these items yourself later on, you must enter a payment method for processing with the payment program.

Examples of incidental costs are: - Premiums/discounts - applied automatically by the system - Flows created explicitly here (for example, disbursement charges) - Condition-based planned records - selected via Withhold up to

If condition-based planned records are selected, these are only considered if the withhold indicator has been set. Other additional incidental costs entered here are considered as either withheld or as a pure debit position posting (either with or without specifying a payment method). You can set the withholding indicator as a default in the company-code dependent data for the product type.


© SAP AG 1999

Create Disbursement: DrawingsCreate Disbursement: DrawingsCreate Disbursement: Drawings

Capital data and payee data

Company codeLoan Borrower

Drawing amountAmount in LCPayment methodName

StreetP.O.BoxCityCountryBank countryBank account:

Net payt amntDrawn amountRemaining amt

P.O.Box codePostal code

UNIUNI

2William Green

7 Main Street

SpringfieldUSUS

69227

87654679

Mortgage loansContract

Brown /1 Main Street / Washington DC 20433

146,500.00

96,500.00

10020030Bank number:

50,000.0050,000.0050,000.00

0001 30A10000000 60

Disburse Contract: Drawings

If the disbursement amount is to be paid to someone other than the main borrower (either partially or completely), enter this as drawings.

The data of the person authorized to draw can be dealt with in one of two ways: 1. Enter the person authorized to draw as a business partner in the role "Person authorized to draw"; Assign this business partner in the loan; enter the drawings using the business partner data. 2. Enter the data of the person authorized to draw on the disbursement screen. Use variant 1 if you know that you will be making several partial disbursements to this partner. If however, you are making a one-time disbursement to a person authorized to draw, variant 2 is more appropriate.

The "drawings" function is only available for disbursements that are to be posted to customer accounts. Drawings are always posted using the customer account of the main borrower. The data of the person authorized to draw is defined in the document as alternative payee, and is then used for payment processing in the payment run. (Prerequisite: You must activate the Alternative payee in document indicator in the master record of the main borrower).


© SAP AG 1999

Partner overviewPartner overview Partner overviewPartner overview

or

- Main borrower- Person authorized to draw

- Main borrower

Disbursement toDisbursement to- Main borrower- Person authorized to draw

Data: - Manualor- Default from

partner overview

Disbursement toDisbursement to


Data: - Manual

Customizing: If plausibility check for partner:

Only possible: Data: - Default frompartner overview

Data of Person Authorized to Draw

In Customizing, you can specify that drawings can only be entered for persons that are assigned to the loan as business partners in the appropriate role (person authorized to draw).

(C) SAP AG AC815 5-10

© SAP AG 1999

Disbursement

Save Post (manually)

P

Post manually Post automatically

Automaticdebit positionor

Manual debit position

Automaticdebit position

I I

I

Prerequisite: Field: “Posting control”:

Prerequisite: Field: “Posting control”:

Saving/Posting Disbursements

You can either post the disbursement immediately (I = actual record), or save it first (P = planned record), and post it later.

The planned record for a disbursement you have saved can be posted in two ways: By calling up the disbursement data for the loan, you can post the individual record manually. Alternatively, you can have the system post the flow automatically using the mass processing program Post planned records. The entry that you make in the Posting control field when you enter a disbursement determines the type of posting permitted - manual posting only, or both manual and automatic posting.

(C) SAP AG AC815 5-11

© SAP AG 1999

Liquidity forecast/cash position

05/01/YYYY 146,500.00

Loan disbursement

TR-CM Interface FI Interface

Disbursement postedDisbursement savedDisbursement posted


Integration with R/3 FI/TR Cash Management

As soon as you save a disbursement, the system generates planned records and writes them to the database. These planned records form the basis for integration with TR Cash Management.

If you post the disbursement immediately, integration with Financial Accounting is also possible. You can then also view the corresponding FI document.

(C) SAP AG AC815 5-12

© SAP AG 1999

TR - LO

Application, offer

Contract

Planned contract disbursement Posting via customer accounts:(Planned record) Subledgers: Level 1, group E2

Posting without customer accts:Banks: Level 1*, account 113100

TR TR -- CMCM

Integration: Cash Management Disbursement

Amounts from an application, offer, or contract are not applied to Cash Management since the cash outflow data has not been fixed yet (amount, (partial or complete disbursement), date).

If you know the disbursement data, enter this in the disbursement. When you save the data, the cashflows are available in CM.

(C) SAP AG AC815 5-13

© SAP AG 1999

Loans management: Cash flowLoans management: Cash flowLoans management: Cash flow05/01/YY 150,000.00 Loan disbursement 000106/30/YY 1,720.83 Interest debit pos. 100106/30/YY 639.05 Annuity repayment 1103

Planned loan disbursement

Subledger accounts 05/01/YYE2 Domestic customers

Level 1 loan 150,000.00

TR-CM Liquidity forecast

Grouping:Grouping: SubledgersSubledgersBank accounts 05/01/YY

DBGIRUN 113105

Level 1* loan 150,000.00

TR-CM Cash position

Grouping: BanksGrouping: Banks

With cust. accts Without cust. accts

Integration with Treasury Cash Management

(C) SAP AG AC815 5-14

© SAP AG 1999

Posting log Posting log FI FI

document: 1600001648document: 160000164805/01/YY05/01/YY

Posting log FI document: 160000164805/01/YY

CoCdePK

0001

14401140015001500402021111115012401240

Account

100036 Brown

100036 Brown

100036 Brown

100036 Brown

100036 Brown100036 Brown100036 Brown100036 Brown100036 Brown100036 Brown

100036 Brown

100036 Brown

1506004602015060019420015060099000150000299100150600150600150600150600150600150600194200150300194200150000194200

Loan disbursement recon. accountOther loansLoan disbursement recon. accountTechnical clearingDisc. receivable recon. accountDeferred incomeReceivables recon.accountOther financial revenueLoan disbursement recon. accountLoan disbursement recon. accountLoan disbursement recon. accountLoan disbursement recon. accountLoan disbursement recon. accountLoan disbursement recon. accountTechnical clearingDisc. receivable recon. accountTechnical clearingReceivables recon.accountTechnical clearing

150,000.00 C150,000.00 D50,000.00 C50,000.00 D3,000.00 D3,000.00 C

500.00 D500.00 C

150,000.00 D149,500.00 D146,500.00 D149,500.00 C146,500.00 C96,500.00 C53,500.00 C3,000.00 C3,000.00 D

500.00 C500.00 D


3380 A_ Credit memo from drawings

0165 A_Discount debit position

3145 A_Process. charges debit position

3375 A_Disbursement reduction3375 A_Disbursement reduction3375 A_Disbursement reduction0001 A_Loan disbursement0001 A_Loan disbursement0001 A_Loan disbursement

3365 A_Discount withheld

Disburse Contract: Posting Log

The above illustration shows a posting log generated on disbursement of a contract.

(C) SAP AG AC815 5-15

© SAP AG 1999

TR - LO

Application, offer

Contract

Planned contract disbursement Subledgers: Level 1, group E2(planned record)

Disbursement posted (act. record) Subledgers: Level 2, group E2

Interest/repayment planned rec. Subledgers: Level 1, group E2

Payment program Banks: Level 3, bank clearing acct

Current account statement Banks: Level 4, bank account

TR TR -- CMCMWith cust. accts

Integration: Cash Management - Overview (1)

Above example: Posting via customer accounts Level 1: Inserted from loan Customizing; all other levels come from the FI account master records.

(C) SAP AG AC815 5-16

© SAP AG 1999

TR - LO

Application, offer

Contract

Planned contract disbursement Level 1*, bank account(planned record)

Disbursement posted (act. record) Level 2*, bank clearing account

Interest/repayment planned rec. Level 1*, bank account

Current account statement Level 3*, bank account

Posting without cust. accts:(Without PR) TR TR -- CMCM

Integration: Cash Management - Overview (2)

PR - payment request Above example: Posting without customer accounts. Level 1*: Inserted from loan Customizing; all other levels come from the FI account master records.

(C) SAP AG AC815 5-17

© SAP AG 1999

LoansLoanssubledgersubledger

FI General FI General ledgerledgerFI FI SubledgersSubledgers

G/L accountsCustomer master dataScreen controlDocument typesPosting keys

Customizing: Integration with FI

In order to use the Loans subledger, you have to make settings in Financial Accounting. For example, you have to create loan-specific account groups and number ranges in the customer master data.

You also have to create reconciliation accounts that can only be posted to from the Loans component.

In addition, you have to set up loan-specific field status definitions for the screen control.

(C) SAP AG AC815 5-18

© SAP AG 1999

01

12

05

15

07

17

+



Line Items

Define Posting Keys

Financial Accounting Global Settings

Document

Controls

FI Posting Keys for Loans

To use the Loans component, you have to change the field status of some of the standard FI posting keys.

To do this, set the field status groups "Invoice reference" and "Financial assets management" to optional entry status. When you do this, the additional fields Contract number, Contract type, and Flow type are displayed when you enter a document with the corresponding posting keys.

For the above example, the posting keys displayed are used for account determination in Loans Management.

(C) SAP AG AC815 5-19

© SAP AG 1999

Financial AccountingG/L accounts

Customers

Payment program, dunning program/interest calculation

TR Loans(1) Product types

(2) Status definitions/transfers

(3) Flow types

(4) Conditions

(5) Account assignment reference/account determination

Dunning

Accounting Customizing: Overview

In Loans Management, all postings are transferred to Financial Accounting. You must therefore set up the appropriate accounts in FI. The standard FI payment and dunning programs are used for postings via customer accounts.

You only have to make additional settings in the Loans Management area for dunning.

(C) SAP AG AC815 5-20

© SAP AG 1999

Assets/liabilities

(1)FI posting (with or without customer)3: Posting with or without a customer is possible.4: Only posting without a customer is possible

CM period (saving horizon for planned records)

Dunning active

Entries for specific functions

Product type

Customizing: Product Types and Accounting

Define default for withholding indicator for disbursement...

(C) SAP AG AC815 5-21

© SAP AG 1999

(2)FI Posting setting with/without customer (3/4)

You can only post an entry with this status if you have entered a status for the FI posting:3: Posting with/without a customer account is possible.4: Only posting without a customer account is possible

3: The system automatically creates the FI customer once this status has been reached (if this customer does not already exist).

Status

Customizing: Status and Accounting

The settings for the FI posting must agree in the product type (1) and for each status (2). If "4" is entered in the product type as well as in the status (without customer), all postings are carried out without customers, irrespective of the entries for the condition (4) or the flow type (3).

(C) SAP AG AC815 5-22

© SAP AG 1999

Ap.Fn.

001

. . .

FType

0001

. . .

Name

A_Loan disbursement

. . .

Pmnt tr. ID.

1

. . .

Flow type

Text

Payment date

Disbursement: Settlement

Payment

05/01/YY

0001

Flow Types

(3)

Per cond. group

001 Disbursement: Settlement002 Disbursement: Incidentals...

F4


ApplicationApplication

Assign Flow Types to Condition Groups for Each Application

In Customizing, you define which flow types may be used for specific application functions. For example, there are two application functions for disbursement: 1) Settlement (initial screen), 2) Incidentals. When you enter a disbursement, you can then choose from the flow types that you have assigned. If for example, you are entering a partial disbursement, and you want to clear the interest amounts due for the previous partial disbursement with the partial disbursement you are currently processing, you can select these records here (Withhold up to) if the condition type for the interest for this application has been assigned to this condition group, and is therefore permitted.

The values for the payment transaction control for the flow type for each application have the following meaning: 0: Non-customer posting 1: Customer posting only 2: Customer posting or non-customer posting If you select 2, you can change the payment transaction flag for the disbursement flow in the disbursement (you can set this indicator as a default in the company code data of the product type). In the other cases, the information from Customizing cannot be changed in the disbursement.

(C) SAP AG AC815 5-23

© SAP AG 1999

FTyp

0110

0165

3145

0001

9010

0001

9010

Name

A_Interest debit position

A_Discount debit position

A_Processing charges

A_Loan disbursement

A_Purchase order

A_Loan disbursement

A_Purchase order

RFlT

3310

3365

3345

3375

9310

3385

9320

Name

A_Interest withheld

A_Discount withheld

A_Proc. charges withheld

A_Reduc. in loan disb.

A_Purchase reduct. BNL

A_Incr. loan disbursement

A_Purchase incr. BNL


Company code 0001

Relationships

009 Incoming payment from amntswithheld from disbursements

011 Change in disbursementobligation from withholding:Debit position

042 Change in disbursementobligation from withholding:Credit position

F4

009

011

042

Flow types

Disbursement: Offsetting Flow

(C) SAP AG AC815 5-24

© SAP AG 1999

-> Functions -> IP Postprocessing

Company code 0001

ProcCat IP

19

:

FTyp

3380

:

Name

A_Credit note from drawing

:

Flow types IP/Rejections

ProcCat IP

19.

Credit notes for drawings

F4

Flow types

Disbursement: Flows for Drawings

In order to post drawings correctly, you have to enter specifications for each processing category (19 in this example) in Customizing. Processing categories are predefined in the system.

For each company code, you assign the corresponding flow types to the processing categories.

(C) SAP AG AC815 5-25

© SAP AG 1999

Defining condition types

CTyp Name RefC FTyp1 FTyp2 Fcat FiMa Payt200 A_Nominal interest var.201 A_Nominal interest

...

01100110

TZ TZTZ TZ

(4)Payment transaction (= customer posting?)

Flag = Yes = Posting possible with/without customer

No flag = No = Posting without customer

Conditions

Customizing: Conditions and Accounting

For postings that are carried out with application functions, settings (1), (2), and (3) apply. For postings that are not covered by application functions, setting (4) is used instead of (3), that is, the information with reference to the payment transaction for the condition type.

If you do not set the payment transaction flag, the flow from the condition is not posted via a customer account.

If you have set the flag, you can post the condition via a customer account; whether the system actually does this or not depends on the entry in the product type (1)/status (2). (The following situation is therefore possible: Product type 1 (mortgage loan given) and product type 2 (mortgage loan taken), both have the same condition group and therefore the same condition types. The payment transaction flag is set in the condition types, that is, the condition flows are posted on via customer accounts for product type 1, and without customer accounts for product type 2).

(C) SAP AG AC815 5-26

© SAP AG 1999

Flow types control:The financial mathematical basis for calculating the cash flow (calculation type)The effective interest calculationIntegration with Treasury Cash ManagementThe posting record in the G/L

(5) Account determination

Flow Types and Accounting

(C) SAP AG AC815 5-27

© SAP AG 1999

Example: Loan disbursement, 1) With customer acct 2) Without customer acctPosting record (= posting specifications)

From (40) Bal. sheet acct to 1) (14) Reconciliation acct/customer ...UNI2) (50) Bank clearing account ...UNI

to 1) 150600 Reconciliation acct ... UNIDisbursement obligation

2) Bank clearing account

from

Account determination

Bal. sheet account

from

Transaction

Acct assignment ref.

- fixed -

Here: Fm 46020Other loans

Reconciliation acct/bank clearing acct

- changeable -

Transaction oraccount determination

from

Account determination

Posting Loans: Overview

To post disbursements: You define the balance sheet account in the account assignment reference. As well as the account number for the loan balance sheet account, the account assignment reference also contains additional information (for example, the business area). The account assignment reference however, is determined automatically by the system in accordance with the rules you have defined in Customizing. You cannot change the balance sheet account as part of the account determination for posting transactions.

When you use terms of payment, the bank clearing account is taken from these specifications, or is determined by the account determination. If you use terms of payment, the account that you specify here can be changed as part of the account determination for the posting.

(C) SAP AG AC815 5-28

© SAP AG 1999

Posting Loans Given and Taken

Loans given

Posted to customeraccounts

- Yes- No payment details(PD)

- Use of FI payment program

- Yes- PD can be used- Payment program for payment requests can be used

- No

- Yes- PD can be used- Payment program for payment requests can be used

Loans taken

Not posted to customeraccounts

If a product type is not managed on the basis of customer accounts, you can activate the use of terms of payment in the product type details in Customizing. The following functions are then available:

- Maintenance of terms of payment for the loan/borrower's note order; if required, you can set the data from the standing instructions of the business partner as default.

- Update in Cash Management using the house bank and house bank account specified in the terms of payment.

- Use of the replacement rule in the account determination for the house bank account specified in the terms of payment.

- Generation of payment requests. - Netting with other payments processed using payment requests.

(C) SAP AG AC815 5-29

© SAP AG 1999

Account assignment referenceMaintain definition

Control automatic determination

(5) Account determinationMaintain definition

Customizing: Account Assignment Reference/Account Determination

(C) SAP AG AC815 5-30

© SAP AG 1999

AcctAssRef Short text33A < 1 Mortgage loan assignment (term < 1 year)33A > 1...

.

.

G/L account

.

.

46020

Company code TR00

Details

Mortgage loan assignment (term > 1 year)

Account Assignment Reference

The account assignment reference determines which G/L account (balance sheet account) you use for loan postings. You can use different account assignment references to create different balance sheets.

When you save a loan, the system determines and includes the account assignment reference in accordance with certain rules. You can still save the loan even if no account assignment reference can be determined. You cannot however, create a disbursement, since you need to know the balance sheet account in order to be able to post a disbursement. If necessary, you may have to maintain loan data in order for the system to determine the account assignment reference.

(C) SAP AG AC815 5-31

© SAP AG 1999

Posting specsAccounts Symbols

Flow type 0001

Debit 40 1 BalanceComp

Credit 14 2.2.0Document type DA Posting category

0001

Debit 40 1 BalanceComp

Credit 50 3 Bank clearing

Flow type

Document type Posting category

0001

Debit 403.1

BalanceComp

Credit 501

Bank (replacement)

Flow type

Document type Posting category

SA

SA

12

Payment trans. 2

13

Payment trans. 1

13

Payment trans. x

0110

Debit 404.1.1

Interest rec.Comp

Credit 505.1.2

Interest received

Flow type

Document type Posting categorySA

Payment trans. x

54

Disburse. oblig. Cust.

Account Determination: Posting Specifications (1)

You specify the accounts to be used in posting transactions using the account determination. The account determination contains the posting specifications, the account symbols used for the posting specifications, and the (G/L) accounts assigned to the symbols. The account determination is carried out based on the flow type and the payment transaction.

Debit and credit postings are defined using the corresponding posting keys (40: G/L account debit posting, 50: G/L account credit posting, 14: Subledger account debit posting).

The document type controls the posting in Financial Accounting (SA: G/L account document). The following prerequisites must be fulfilled before you can post to Financial Accounting:

- All the accounts required have been created and correctly selected. - The document type table contains the document types and permits postings to the account types

required. - The number range connected to the document type has internal number assignment in Financial

Accounting. - The posting periods are open for posting.

(C) SAP AG AC815 5-32

© SAP AG 1999

PT Name

11 Bal. sheet to bal. sheet12 Bal. sheet to subledger13 Balance sheet to bank14 Balance sheet to profit/loss15 Bal. sheet to G/L account21 Subledger to bal. sheet

.31 Bank to balance sheet32 Bank to subledger33 Bank to bank34 Bank to profit/loss35 Bank to G/L account41 Profit/loss to balance sheet42 Profit/loss to subledger43 Profit/loss to bank44 Profit/loss to profit/loss45 Profit/loss to G/L account51 G/L account to balance sheet::

Payment transaction

1 Not posted to cust. accts, no house bank

Posting specifications

0110 A_Interest debit position

0001FTyp Name

A_Loan disbursement::

::

2 Not posted to cust. accts, house bank acctX Posted to customer accounts

Flow types

• Posting category

Account Determination: Posting Specifications (2)

The account determination takes place in two steps: 1. The posting specifications are determined based on the flow type and the payment transaction. They describe the type of posting in abstract form - irrespective of the chart of accounts. For each type of posting, you define the document type, posting key, account symbols, and the posting category. The posting category describes the type of account to be posted to (for both debit and credit side): 1: Balance sheet account (from account assignment reference) 2: Subledger account (customer) 3: Bank (clearing) account 4: Profit/loss account (G/L account with cost center) 5: G/L account (G/L account without cost center) 2. The account symbols are replaced by specific G/L accounts and changed where necessary. Posting category 1 is an exception. The account symbol for the balance sheet account is replaced by the balance sheet account defined in the account assignment reference, but cannot be changed.

Note: The entry "+" for the payment transaction is a generic entry. This means that the account determination for this entry is only used if no account determination with another payment transaction (x, 1, or 2) applies to the flow type.

(C) SAP AG AC815 5-33

© SAP AG 1999

Acct symbols

AccountsPstg specs

Application 0101 Treasury: Loans

Acct symbol Name:#

3

4.1.1

1

:

::

Determine automat.BalanceBank clearing

Interest received

::

Symbols

3.1 Bank (replacement)

Account Determination: (Account) Symbols

Account symbols describe a group of G/L accounts. They are used to summarize postings of the same type (for example, write-off expense). The symbols can be used for several different posting specifications. The fine control for posting is achieved by selecting different G/L account assignments.

Reserve a symbol for the internal automatic determination of specific data. This is relevant for example, for the postings for the contract currency changeover.

(C) SAP AG AC815 5-34

© SAP AG 1999

Accounts

Pst specs Symbols

Application 0101 Treasury: Loans

Acct symbol

Chart of accounts International chart of accounts

Acct assignment ref. Currency G/L acct

INT

::

::

33

4.1.1

+++++

+USD+++

113105113155++++++++++5273100

Chart of accts INT

Account assignment

3.1

Account Determination: Account Assignment

You assign one or more G/L accounts for the appropriate chart of accounts to the account symbol. The multiple assignment is carried out based on the currency and/or the account assignment reference. This permits a varied selection of all posting transactions. Example: A customer loan is disbursed. If the contract currency is USD, the account determination determines the account 113155, for other currencies, account 113105 is determined.

If the payment transaction is "X" - customer posting - all of the accounts to be posted to must be specified explicitly in the account block. The bank account is determined during the payment run in accordance with the rules defined there. If the payment transaction is 1 - no house bank account specified - you also have to specify the account explicitly in the account block. (Example: Account symbol 3, account specification: 113105 or 113155) If the payment transaction is 2 - house bank account specified - the account specified in the transaction can still be changed in the account block. You can use the replacement rule to do this. (Example: Account symbol 3.1 with the account masked). Example: A non-customer loan is disbursed. Current account 113100 is specified in the terms of payment. Since the in-house preposting is carried out via a bank clearing account, the current account specification in the account determination is changed. The last character is replaced by a "5”, and the posting is therefore to account 113105.

(C) SAP AG AC815 5-35

© SAP AG 1999

Mortgage loan: 25 years, disbursem. 150,000.00 -> acct assignment ref. 30A>1

May 01 Other loans 150,000.00May 01 0001 Cleared disburs. 150,000.00

Other loansOther loans 4602046020

D150,000.00

Balance sheet accountaccord. to acct assgt ref.

DisbDisb. . clrgclrg acctacct 150600150600

Disbursementobligation

D

40 Debit Balance

14 Credit Disbursem. oblig.

Flow type

Posting specific.Posting specific.

0001 X

C

5000.00

C

Postings: Account Determination

For each flow that is relevant for posting, the system determines the corresponding posting specifications via the flow type.

The posting specifications control how individual business transactions are posted. They contain the rules for posting and account determination per flow type dependent on the account assignment reference and the currency.

The posting specifications contain control information that is transferred directly to Financial Accounting, such as the document type and the posting keys for the debit and credit sides of the posting. The posting specifications also include information required to determine the specific G/L and subledger accounts using the loans posting interface, such as the posting category and the account symbols.

(C) SAP AG AC815 5-36

© SAP AG 1999

Value groups > Values ..

1 A .BC

2 DE

(All) combinations of value groupsSelection for required automaticdetermination of the account assignment reference

Assign account assignment references to thecombinations selected

Charact. 1 Charact. 2

Determination of Account Assignment Reference -Overview

If you enter a transaction, you need the information about the balance sheet account to be posted to (posting is carried out later). In the loans area, the account assignment reference is determined automatically by the system. As part of the automatic determination of the account assignment reference, certain characteristics in the transaction are read, and an account assignment reference is determined in accordance with the specifications for this characteristic.

(C) SAP AG AC815 5-37

© SAP AG 1999

Company code 0019Contract type 1 LoanProduct type 300 Mortgage

Business partner number

Posting system ind. for borrower's note loans

Loan type indicator

Loan class indicator

Object type

Purpose of loan

Currency....

....

Selectable characteristics

Loan maturity

Product type

Selected characteristics

ValGrp Comment

Value CommentValue groups

Values

Double-click

Example

123

Less than 1 yr1-5 yearsMore than 5 yrs

010203

*

Due in less than 1 yrTerm: 1 -3 yearsTerm: 3 -5 yearsRemaining

Determination of Account Assignment Reference: Characteristics

The automatic determination of the account assignment reference is carried out based on certain characteristics selected in Customizing. You define values for characteristics, and these values are then summarized in value groups.

The automatic determination of the account assignment reference is defined in the company code either for the product type selected, and/or for all product types for the loan contract type. The determination of the account assignment reference is carried out in two steps:1. If an entry exists at product type level, this account assignment reference is used. 2. If no entry is determined under 1., the relevant definition for the contract type is used. If no specification can be determined under 1. or 2., the system issues a message.

(C) SAP AG AC815 5-38

© SAP AG 1999

Maturity ValGrp Product type

Acct assignment ref. allocation

Combination

AcctAssRef

ValGrp Maturity ValGrp Product type

ValGrp

Select and Copy

Enter and save

0001 Less than 1 year 0001 Mortgage given0001 Less than 1 year 0002 Mortgage taken0002 1- 5 years 0001 Mortgage given0002 1- 5 years 0002 Mortgage given0003 More than 5 years 0001 Mortgage given0003 More than 5 years 0002 Mortgage given

30A<1 0001 Less than 1 year 0001 Mortgage given30B<1 0001 Less than 1 year 0002 Mortgage taken30A 1-5 0002 1- 5 years 0001 Mortgage given30B 1-5 0002 1- 5 years 0002 Mortgage given

Determination of Account Assignment Reference: Allocation

Using the values and value groups defined for the characteristics selected, the system displays all of the combinations of value groups that can be used for the automatic determination of the account assignment reference. You then allocate account assignment references to the combinations selected.

(C) SAP AG AC815 5-39

© SAP AG 1999

Main borrowerRole '0100'

One/several loans

Accounting

Postings Debit positions Incoming payments

=

Link to Customer Accounts

There is only one customer account per loan - the account of the main borrower (role category 0100). All postings for a loan that involve payments are made via this account.

The system also creates customer accounts for all the other loan partners with role categories designated for posting via customer accounts. However, no postings are made to these accounts.

When incoming payments are distributed, all the receivables for a contract are held in a single customer account. You cannot enter a customer number for an alternative payer.

Similarly, when you generate the debit position manually, you can only make postings to partners with one customer account. The posting is also made via the customer account of the main borrower for the specified contract.

(C) SAP AG AC815 5-40

© SAP AG 1999

Product type (1)

Status (2)

Flow types (3)

Conditions (4)

Account determination (5)

Business partner (6)

If you want to make postings to customer accounts for a particular product type and company code, you need to make settings for the following:

Posting via Customer Accounts

(C) SAP AG AC815 5-41

© SAP AG 1999

Reconciliation account

Terms of payment

Interest indicator

Dunning data

Payment methodsGrouping key for payments

Business partner master record: Company code data

Cash Management group

Posting to Customer Accounts: Business Partner

If you want to make postings via customer accounts for product types in a particular company code, you can set default values for creating customer accounts automatically in Customizing. The system then uses these values when you create a customer master record. You can do this for example, to ensure that a customer relevant for loans always has a payment method with individual payment - this is required for disbursement.

(C) SAP AG AC815 5-42

© SAP AG 1999

-> Functions -> Disbursement -> Define plausibility checks

PTyp

30A

PlausiCat

1

File PartnerObject Enc. Condition

Customizing: Disbursement Plausibility Checks

In this table you define the plausibility checks that the system should carry out for each product type during disbursement.

The indicators mean that you can only enter a disbursement if: - All documents in the file are marked as available - An object is assigned to the loan - An encumbrance has been entered - An interest condition has been entered If you select the Partner indicator, when you enter drawings for disbursements, only the data (imported by the system) of the person entitled to withdraw from the partner overview of the loan is permitted.

(C) SAP AG AC815 5-43

© SAP AG 1999

Partner overviewPartner overview Partner overviewPartner overview

or


- Main borrower

Disbursement toDisbursement to- Main borrower- Person authorized to draw

Data: - Manualor- Default from partner overview

Disbursement toDisbursement to


Data: - Manual

Customizing: If plausibility check for partner:

Only possible: Data: - Default frompartner overview

Data of Person Authorized to Draw

(C) SAP AG AC815 5-44

© SAP AG 1999

Contract

Partner

Conditions

Agent commission

Payer/Payment dataPartnerPartner bank typePayment method

2

Role PTyp PM0121 Other loan part. with cust.acct PS19000000004 Black

Eff. from Percent.05/15/YY 0.5000 Due date

15/15/YY

Detail screen

0009000000004 Black PS1

Payments to Third Parties

In the contract, you can also enter conditions that you, as the loan provider, owe to a third party. For example, agent commission for negotiating the loan contract.

When you make payments to a debtor other than the main borrower, such as commission to an agent, this payment may not be dunned, cleared against loan receivables, or taken into account when incoming payments are processed. This takes effect if a flow is flagged for "Payment to third parties". This indicator only applies for flows posted via customer accounts. If the product type has not been set up for postings via customer accounts, this indicator can be ignored.

When a contract is processed, the system requires the user to enter a payment method defined in FI for flows (or conditions) flagged for payment to third parties.

(C) SAP AG AC815 5-45

© SAP AG 1999

Transaction Management Flow Types

Payments to third parties

Product Types

Role category: 0121 'Other loan partners with cust. acct'

Company Code-Dependent Settings for Product Type

'A' : Dunning block

Transaction Management

Customizing: Payments to Third Parties

You need to assign role category '0121' to the third party to the contract. You can only assign conditions to a partner in this role if the flows generated by the conditions have been flagged for 'Payment to third party'.

The flow type-based conditions generate planned records containing a dunning block and a payment method for individual payment for incoming payments.

For this, you need to set the dunning block as default for the product type in the company code. The system then copies the dunning block to the item generated by the flow in the customer account. Configure the dunning block so that the item is neither dunned nor printed, for example, the standard FI dunning block 'A'.

(C) SAP AG AC815 5-46

© SAP AG 1999


Treasury

Treasury Management

Cash Management

Securities

Loans

TR - CMDefine account groupsPlanning levels(bank/subledger)Planning groups

TR - LO LoansFlag flow types as relevant for Cash ManagementAssign planning levels

Customizing: Integration With TR Cash Management

(C) SAP AG AC815 5-47

© SAP AG 1999

FTyp Name1000 Purch.

A_Annuity rep. debit pos. Rec.A_Interest debit position0110

0125

Flow type 0001

Posting

Posting controlIncomingpmnt

1


A_Loan disb.

Grouping

AInflowFlow category

Flow types

Other

Relev. to CMx

...

Double-clickFTyp

Define Flow Types

Integration: Cash Management - Loans I

You need to flag the flow types for the loan activities you want to include in Cash Management as 'Relevant to CM'.

(C) SAP AG AC815 5-48

© SAP AG 1999

PTp Sts ACat Level (bank known) Level (bank unknown)30A 60 0 LB LP31A 60 0 LB LP31B 60 0 LB LP32A 60 0 LB LP33A 60 0 LB LP

:: :

:

Treasury : Assign Planning Levels

Company code 0001

Integration with Cash Management - Loans II

Planning levels are assigned per product type and company code, and reflect the logical source of the cash flows held in the accounts. Only the Status column is relevant for Loans Management.

The Bank known level is relevant for non-customer postings (cash position), the Bank unknown level is relevant for customer postings (liquidity forecast).

(C) SAP AG AC815 5-49

© SAP AG 1999

Loans Customer

Loan is flagged as 'disbursed' in the system.

Borrower has not yet received the payment.

150,000 146,5001 1

Others

3,500 1

Postings: Disbursement to Borrower

(1) The contract is disbursed. The contract is flagged as disbursed within the Loans component. At this point, however, the borrower has not yet received the disbursement amount. To make the actual payment to the borrower, you have to run the SAP payment program. The contract is flagged as disbursed as soon as you save a disbursement.

(C) SAP AG AC815 5-50

© SAP AG 1999


Post disbursement


Payment date Settlement amt Name P FTyp

05/01/YY 146,500 Loan disb. P 0001

Payment date Settlement amt Name P FTyp

05/01/YY 146,500 Loan disb. I 0001

'Plannedrecord'

'Actualrecord'

Start payment program

Loan disbursed

Planned Record -> Actual Record

Flows that have been entered but not posted are displayed as P - planned record in the cash flow. Records that have been posted are displayed as I - Actual record.

When you post a disbursement, you have only completed the posting transaction. In order to actually make the payment to the customer, you have to trigger the relevant payment transactions.

(C) SAP AG AC815 5-51

© SAP AG 1999


MasterMaster



DocumentsDocuments

Payment run

Print data setPrint data set

Print programPrint programCheck Transfer Transfer Payment Payment

advice note summaryPayment medium

Proposal run

Automatic Payments: Payment Program

The payment program processes the disbursement obligations further and pays them. After you have run the print program, the payment media created are passed on to the house bank. The house bank then, for example, transfers the amount to the borrower.

(C) SAP AG AC815 5-52

© SAP AG 1999

Loans Customer150,000 146,500

Bank clearing146,500

21 1

2

146,500

Bank account146,500 33 146,500

Others3,500 1

Postings: Payment Program for Disbursement

(1) The contract is disbursed. (2) Once the payment program has been run, the borrower receives the loan as an individual payment, either by bank transfer or by check.

(3) The house bank carries out the transfer and debits the current account. You receive an account statement and then process this data in the system.

(C) SAP AG AC815 5-53

© SAP AG 1999

Disburse a loan that has been entered, that is, post the loan

Configure the system in such a way that posting transactions can be carried out correctly


Disbursement: Unit Summary

(C) SAP AG AC815 5-54

Disbursement Exercises

Unit: Disbursement


• Disburse a loan with additional flows

• Check which criteria are used to determine the account assignment references, and which balance sheet account is used

You want to disburse your loan.

1 Disbursing a loan.

1-1 Create a copy of an existing loan contract and disburse this contract. You want to withhold processing charges amounting to 100 UNI from the disbursement amount. Look at the posting log after the contract disbursement and make a note of the document number.

1-2 Check the effect of the disbursement in Cash Management.

2 The system determines the account assignment reference automatically using the product type and maturity. Check the settings for the automatic determination of the account assignment reference for mortgage loans for the product type that you set up, 9XX

3 To continue, set up the account determination for the flow type you defined in the previous unit

“Sxx”(Special charge). To do this, copy the account determination for the flow type 3145 with the payment transaction “X” (with customer accounts).

(C) SAP AG AC815 5-55

Disbursement Solutions

Unit: Disbursement


Enter a loan disbursement

Check the account assignment reference determination

1 Disbursement

1-1 Create a new contract using the copy function.

→ Accounting

→ Treasury

→ Loans


→ Mortgage Loans

→ Contract

→ Create

Field name or data category Value

Company code TRXX

Product type 30A Select Copy reference. Enter the loan contract you previously created as the reference, and select both options, Copy conditions, and Copy business partner.

To carry out a disbursement for your copied loan:

→ Accounting

→ Treasury

→ Loans


→ Mortgage Loan

→ Contract

→ Disburse Enter incidental costs with flow type 3145 by selecting the corresponding function.

(C) SAP AG AC815 5-56

Ensure that the charges are withheld (field Withhold up to).

Only the flow types permitted for disbursement flows and disbursement incidental cost flows are displayed.

1-2 Effect on Cash Management.

→ Accounting

→ Treasury

→ Cash Management

→ Information system

→ Reports on Cash Management

→ Liquidity analyses

→ Cash position

Field name or data category Values

Company code TRXX

Grouping BANKEN

The contract is only visible in CM once you save/post a disbursement.

2 Customizing: Determination of Account Assignment Reference:

→ Treasury


→ Loans

→ Functions

→ Accounting

→ General Ledger Update

→ Control Automatic Determination of Account Assignment Reference

(C) SAP AG AC815 5-57

Field name or data category Values

Company code TRXX

Product category 300 The following screen contains the characteristics used to determine the account assignment reference. You can display the exact combination of characteristics via Account assignment reference allocation. You can display the individual characteristics in the value groups by selecting Value group.

3.Customizing: Account Determination

→ Treasury


→ Loans

→ Functions

→ Accounting


→ Define Account Determination

Select the posting specifications for flow type 3145 with payment transaction “X” and then use the copy function.

→ Edit → Copy


© SAP AG 1999

Generating due items

Entering incoming payments from the borrower

Open items: Clearing, interest on arrears, dunning, waiver, write-off

Customizing:

- Flow types- Incoming payments- Dunning

Contents

Payments Due


© SAP AG 1999

Post incoming payments using the manual bank statement

Explain how incoming payments are processed in the system (correct amounts, overpayments, underpayments)


Payments Due: Unit Objectives


© SAP AG 1999


Closing operations

Rollover



Disbursement

Course overview


Loan contract

Payments due



© SAP AG 1999

Interest and repayments on loans given are due at the end of the month.

One customer transfers the correct amount for the payments due; another customer transfers an amount that is too high.

Payments Due: Business Scenario


© SAP AG 1999

- Create loan- Business partner- Conditions- Correspondence- Disburse/post loan- Integration with CM- Integration with FI- Post amounts due- Incoming payment postprocessing

IInterested Applnterested Appl. . Offer Contract Offer Contract DisburseDisburse-- Other RolloverRolloverpartyparty mentment activities

Mortgage Loans - Processing Seq./Contract



© SAP AG 1999



Payment program

Debit position

Disburse contract


Example Business Process: Debit Position


© SAP AG 1999

Debit position

Carry out posting: Mass processing--> Post planned records

Carry out posting: Per contract--> Post individual loan

Debit Position: Mass Processing <-> Per Contract


© SAP AG 1999

MM/DD/YY Interest 500 UNIMM/DD/YY Repayment 1,000 UNI

Cash flow

PP

Post planned records on due date: P --> IDue items are generated, open items are created in the customer,(debit posting) --> Debit position

MM/DD/YY Interest 500 UNIMM/DD/YY Repayment 1,000 UNI

Cash flow

II

Bal. sheet acct

1,000

Receivables recon. acct- Customer

1,500

Interest received

500

Posting Planned Records - General Description

When you carry out an automatic debit position run, the system processes both planned records resulting from the cash flow, and postings entered and released manually in subsequent posting applications (such as disbursement). The items due are posted according to the settings defined in the account determination.

Exception: The system does not select the items with the posting control key '21' (manual debit position).


© SAP AG 1999

The automatic debit position run also:

Clears advance payments created (if the incoming payment was posted before the debit position)

Clears receivables (if the incoming payment is automatically created during the debit position run)

Automatic Debit Position Run - Tasks

Advance payments assigned to planned records are cleared by the automatic debit position run. The receivables are cleared by the debit position run if you have set the 'Generate incoming payment immediately' indicator. In this case, the system automatically makes a posting to the bank clearing account parallel to generating the debit position.

Depending on the conditions defined in the contract, the system splits the debit position into the respective parts for the main borrower and the subsidy office. In the subledger, both debit positions are assigned to the loan account. In the general ledger, part of the position is held in the customer account for the main borrower, and the other part is held in the customer account for the subsidy office.

(C) SAP AG AC815 6-10

© SAP AG 1999

Company code 0001 ToProduct type 30A To Loan number To

Only loans disbursed

Selection of loans by currency and interest calc. types LC loans with reference interest rates LC loans with other interest calculationLoans acc. to planned principleLoans acc. to actual principle

Only display loans not updated

Preparation for the Debit Position Run: Update Planned Records

The planned record update function regenerates the cash flow on the basis of the conditions and the postings that have been made, and writes the planned records to the database.

This function also allows you to carry out interest rate adjustments. When you run this report program, for example, the system adjusts any amounts which depend on reference interest rates to reflect the reference interest rates currently defined in the system. This also applies to foreign currency loans; the planned records update recalculates the planned records using the appropriate current exchange rate in the system.

When you create a contract, the system writes the cash flow for the CM period defined in Customizing to the database (see Customizing for product type). This is only done however up to the date for the end of the update, as long as this is within the CM period.

You should run this program for all loans at least every six months, in order to make the cash flow available for the full CM period. Loans that depend on reference interest rates, and foreign currency loans, obviously need to be updated more frequently to ensure that the current values are calculated before posting.

(C) SAP AG AC815 6-11

© SAP AG 1999

Company codeContract numberPartnerProduct typePayment methodUp to & incl. due datePosting dateDocument text

LogTest run

000110000000

?06/30/YYLoan debit position

Automatic Debit Position Run: Post Planned Records

The automatic debit position run selects all of the due items in the contracts you have chosen on the selection screen. All of the planned records for the loans selected that are due either on or before the date in the Up to and including due date field are posted.

(You have already defined whether the debit positions should be generated manually or automatically on the detail screen for the contract conditions).

If you want to simulate the run for control purposes, for example, use the Test run function. The selection rejects all planned records from contracts that have not been released and that do not have the posting control indicator '01' (automatic debit position).

If errors occur during the debit position run, the system does not process any of the planned records selected from the corresponding main borrower. In this case, the system omits the contract that caused the error as well as all of the other contracts of the main borrower that have been selected.

(C) SAP AG AC815 6-12

© SAP AG 1999

CoCd Document No. Date Doc.type Contr.type Contract number FType PK Account G/L Currency

CoCd Document No. Date Doc.type Contr.type Contract number FType PK Account G/L Currency

Posting logLoan debit position09/01/YY

Posting logLoan debit position09/01/YY

00000100000001DA06/30/YY000101

01

10000000Brown

150200Interest receivables

1,720.83 D 0110

0120639.05 D150100Repayment receivablesBrown

10000000

UNI

UNI

1,720.83 C

639.05 C

273100

46020Interest received

Other loans

50

50 UNI

UNI

Automatic Debit Position Run

The above is an example of a posting log for the repayment and interest postings.

(C) SAP AG AC815 6-13

© SAP AG 1999



21 1

2

146,500

Bank account146,500 33 146,500

Others3,500 1

2,359.884

1,720.83 4

Others

639.05 4

Postings: Automatic Debit Position


(3) The house bank carries out the transfer and debits the current account. You receive a bank statement and then process this data in the system.

(4) The receivables due are generated on the due date for the interest and repayment. The automatic debit position run (post planned records) creates open items in the customer account.

(C) SAP AG AC815 6-14

© SAP AG 1999

EvaluateEvaluate

Customer line items

Customer acct analysis

Accounting - Evaluations I

In Loans Management, you can trigger these two FI functions for evaluating customer accounts.

(C) SAP AG AC815 6-15

© SAP AG 1999



Payment program

Disburse contract

Incoming payments


Example Business Process: Incoming Payment

(C) SAP AG AC815 6-16

© SAP AG 1999

Credit postings for loans given result from:Direct debitsTransfers from the borrowerManual entries (manual debit position), for example, waiversAutomatic entries generated within the Loans application,for example, an overpayment write-off

Sources of Incoming Payments for Loans

(C) SAP AG AC815 6-17

© SAP AG 1999

Payment received from customer

By transfer By direct debitor by check

Bank statement Payment program

Bank statement

Bank FileApplicationof funds

~~~~~~~~~~

Bank

Automatic bank statement Manual bank statement/

Payment Options: Bank Statement

The customer has various options for paying due amounts. You have to carry out different processing activities for these options: If the customer pays by bank transfer, you receive the payment and the information with the bank statement from your house bank.

If the customer pays by direct debit, you trigger payment by executing the payment run. The money is collected using the payment media generated. The bank statement data informs you about the incoming payment.

(C) SAP AG AC815 6-18

© SAP AG 1999

The following data is required for the debit memo procedure: Summarization level for incoming payment distribution (1, 2, or 3) to control the distribution level for the debit memos (Customizing: Company Code-Dependent Settings for Product Type)Bank details and collection authorization(Application: Business partner master record)Bank type for the condition: Payment method 'E' in the condition(in the loan)

Debit Memo Procedure

(C) SAP AG AC815 6-19

© SAP AG 1999


MasterMaster



DocumentsDocuments

Payment run

Print data setPrint data set

Print programCheck TransferTransfer Payment Payment

advice note summary

Payment medium

Proposal run

Automatic Payments: Payment Program

(C) SAP AG AC815 6-20

© SAP AG 1999



21 1

2

146,500

Bank account146,500 33 146,500

Others3,500 1

2,359.884

1,720.83 4

Interest received

639.05 4

2,359.88 5

2,359.8852,359.886

2,359.88 6

Incoming Payments by Direct Debit



(4) The receivables due are generated on the due date for the interest and repayment. The debit position run (post planned records) is used to create an open item in the customer account.

(5) FI payment program; generation of payment media; presentation of the debit memo to the house bank.

(6) The bank statement is received and displays the credit memo posted from the direct debit.

(C) SAP AG AC815 6-21

© SAP AG 1999

Import data via the “electronic” bank statement, or enter the data from the bank statement manually.

The payments are received for one main borrower (customer). The incoming payments are distributed to loan customer accounts on the basis of the open items for these accounts.

To clear postings for a manual bank statement, either create batch input sessions, or post the clearing immediately.

When you process these sessions, or when you post clearing, the system clears the open items. Clearing is posted to FI andsubledgers where necessary.

Bank Statement

(C) SAP AG AC815 6-22

© SAP AG 1999

*** in accordance with the field "IPD control" in the loan basic data

Manual/Electronic Bank Statement

Incomingpayment

Assignmentto

customers/finance project

orcontract

Clearingof

openitems

determined

***

Incoming Payment Distribution: Process

The incoming payment distribution is used to assign an incoming payment to the loan(s) of a customer/finance project/loan contract.

The system then tries to clear open items at the distribution level determined.

(C) SAP AG AC815 6-23

© SAP AG 1999

Business partner "Brown", customer 100036

Contract 1 Contract 2 Contract 3 Contract 4 Contract 5 Contract 6

Finance project A Finance project B Finance project C

Incoming Payment Distribution: Level

If a customer has several loans, you agree the units in which he manages his loans. - If he pays items due for all loans in one total, select IPD level Customer. The incoming payment

is then distributed to all of the customer's loans in accordance with certain rules. - If the customer makes separate payments for each contract, select the IPD level Contract. The

incoming payment is then used for the appropriate contract. - If the customer wants to manage several contracts together, group the contracts via the field

Finance project, and then select IPD level Finance project. The incoming payment is then distributed to all of the customer's loans in accordance with specific rules.

(C) SAP AG AC815 6-24

© SAP AG 1999

Customer open items

OI filter at contract, finance project, or customer level

Prioritization rules defined

Incoming payments distribution

Incoming payment (credit memo in acct statement)

Incoming Payment Distribution: Overview

The contract filters (IPD level) determine which open items are selected. These items are then compared with the incoming payment in accordance with the prioritization rules.

You define prioritization rules for incoming payment distribution in Customizing. Prioritization according to flow type is frequently used. This means that the payment clears interest or charges receivable before the repayment.

You define the distribution level for incoming payments and direct debits in Customizing (payment summarization level in the company code-dependent settings for the product type). You define the distribution level for incoming payments from transfers in the basic data for the contract (IPD control; default from the company code-dependent settings for the product type).

(C) SAP AG AC815 6-25

© SAP AG 1999

Openitems

Otheroverpayment

orqualified

overpayment

Rejection

Receivablescleared

Advance payment

Creditsfor specific

purposeOthercredits

OI clearingand

residual items

Outstandingreceivable

Distribution to ...

Assignment of Incoming Payments

The incoming payment is assigned to one or more loan contracts and the IPD level is determined. If this is not possible, for example, because no contract number has been specified, the amount is posted to a rejection account. Rejections are processed manually later on.

The incoming payment amount is compared with the open items of the loan in accordance with the IPD level. The following situations are possible:

- The total of the open items agrees with the incoming payment --> The open items are cleared. - The incoming payment amount is less than the total of the open items. Depending on the

settings in Customizing, either the total incoming payment is posted as an overpayment, or the open item is cleared, and a residual item is created as a new open item in the amount of the difference.

- The incoming payment amount is higher than the total of the open items. Depending on the settings in Customizing, either the total incoming payment is posted as an overpayment, or the open items are cleared, and an overpayment is created in the amount of the difference.

- There are no open items, but there is a planned record for this amount that is due soon. The incoming payment record is posted as an advance payment and is cleared with the open item in the next debit position run.

In Customizing, you define whether overpayments are "others" or "qualified". Other overpayments can only be processed manually, qualified overpayments can be processed both manually and automatically.

(C) SAP AG AC815 6-26

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Account statement

Manualentry

Interim data set

G/L accountingdocuments

Sub- ledgeraccountingdocuments

Postdirectly

Incoming Transfer: Example of a Manual Bank Statement

If your bank account statement is available, the transactions for the account in the system are used. An interim data set is created, based on the data entered. This then has to be posted. The posting can either be carried out immediately, or later using batch input. The postings always affect the general ledger (bank account and bank clearing) and possibly also the sub-ledger account.

(C) SAP AG AC815 6-27

© SAP AG 1999

Case 1

The customer transfers the correct amount to cover the interest and repayments due. How is this treated in the system?

Case 2

The customer transfers more than is necessary to cover the interest and repayments due. How is this treated in the system?

Examples of Incoming Payment Processing

(C) SAP AG AC815 6-28

© SAP AG 1999

Case 1

The customer transfers the correct amount to cover the interest and repayments due. How is this treated in the system?

Processing Incoming Payments (Case 1)

(C) SAP AG AC815 6-29

© SAP AG 1999

House bank DBAccount ID GIRUN

1Statement number

ControlsBeginning balance

Statement date 0//01/YY

Sel. of payment advicesPlanning type

Ending balancePosting date

2,359.8807/01/YY

Further processing

Bank posting sessionSubledger session

BAPOSLPO

Bank postings only

Statement datePlanning date from

Processing Manual Bank Statements (Case 1)

In Cash Management Customizing, you define different variants for the entry screens for account statement data. For the loans area, you must define a field for specifying the contract number. If you do not specify a contract number, the incoming payment is posted to the rejection account.

You have to enter the following data: - Statement date- Posting date for the account statement. If you do not specify a posting date, the statement date is copied into this field. With regard to clearing open items, the incoming payments are compared with those open items where the debit position posting date is earlier than, or the same as, the posting date for the bank statement.

(C) SAP AG AC815 6-30

© SAP AG 1999

Tran. Value date Amount Customer C Contract no. Coll.inv.

Bank acct 110113100 G/L acct 113100

Bank statement items

Credit memo Client Contract typetransfer Loan contract

CoCde 0001 Currency UNI

10000000051 07/01/YY 2,359.88 100000000 1

Entering the Items (Case 1)

The transaction code defines the type of posting, for example, check credit memo, credit memo from bank transfer, and so on.

You must specify the contract number; if you do not, the assignment to loan contracts cannot be carried out. The system determines the customer from the contract number specified.

(C) SAP AG AC815 6-31

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21 1

2

146,500

Bank account146,500 33 146,500

Others3,500 1

2,359.884

1,720.83 4

Interest received

639.05 4

5 2,359.88 5 2,359.88Bank ledger session Subledger sessionKey:

52,359.885 2,359.88

5 2,359.88

52,359.88

Incoming Payments by Bank Transfer (1)




(5) The customer pays by bank transfer. The credit memo to the bank account is processed using the bank statement. Postings are carried out to the bank accounts and the customer account is cleared.

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IMG: Financial Accounting Bank Accounting Business Transactions Payment Transactions Manual Bank Statement

AC805 Cash Management

Create Keys for Posting Rules

Assign Business Transactions

Define Posting Rules for Manual Bank Statements

Define Variants for Manual Bank Statements

Customizing: Manual Bank Statement

Before you can use the manual bank statement function, you need to make certain settings in the IMG for TR Cash Management.

It is advisable to create a new account assignment variant that includes the relevant fields for loans, or at least the contract number.

(C) SAP AG AC815 6-33

© SAP AG 1999

Case 2

The customer transfers more than is necessary to cover the interest and repayments due. How is this treated in the system?

Processing Incoming Payments (Case 2)

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© SAP AG 1999

Controls

Sel. of payment advices

Further processing

2,459.88

Bank posting sessionSubledger session

BAPOSLPO

House bank DBAccount ID GIRUN

Statement date1

07/01/YY

Beginning balance

Ending balancePosting date 07/01/YY

Planning typeStatement datePlanning date from

Bank postings only

Statement number

Processing Manual Bank Statements (Case 2)

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© SAP AG 1999

Tran. Value date Amount Customer C Contract no. Coll.inv.

Bank acct 110113100 G/L acct 113100 CoCde 0001 Currency UNI

Bank statement items

10000000051 07/01/YY 2,459.88 100000000 1

Entering the Items (Case 2)

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21 1

2

146,500

Bank account146,500 33 146,500

Others3,500 1

2,359.884

1,720,83 4

Interest received

639.05 4


52,459.885 2,459.88

5 2,459.88

52,359.88100.00

Incoming Payments by Bank Transfer (2)



(4) The receivables due are generated on the due date for the interest and repayment. The debit position (post planned records) is used to create an open item in the customer account.

(5) The customer pays by bank transfer, but pays 100 UNI too much. The credit memo to the bank account is processed using the bank statement. Postings are carried out to the bank accounts and the customer account is cleared. The difference is posted to an overpayment account in accordance with the rules defined in Customizing. You process this further as part of the incoming payment postprocessing.

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IP DistributionIP Distribution OI Sort

Define Evaluation CriteriaDefine PrioritiesDefine Sort Sequence

Define Evaluation CriteriaAssign Flow Type to Evaluation CriteriaEvaluation Criteria Management

IP Distribution AP/OP

Payment LevelLimit Value/Amounts EqualAssign Account Statement

Other Settings

I.

II.

Customizing: Incoming Payment Distribution

You have to make settings for incoming payment distribution in the IMG. The setting levels can be divided into three sections:

- IP Distribution OI Sort Here, you define the criteria according to which open items should be sorted and made available for clearing. For example, you could configure the system to clear charges before interest payments or repayments.

- IP Distribution AP/OP Here, you define evaluation criteria and then assign flow types to the criteria. For example, you can configure the system to assign payments made before they are due to the corresponding planned records, or post them as overpayments.

- Other Settings Under 'Payment level' you define the incoming payment variants, which in turn comprise four parameters, such as whether payments should be summarized at contract level. Under 'Limit value', you define the limits for when incoming payments should be accepted as overpayments.

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Incoming payment (IP)

RejectionContract number specified?

Assignment to IP level?

Open items?

Yes

No

I.

Yes

No

No

Yes

Rejection

Incoming Payment I.

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Open items?

Yes No

No

Yes No

Yes

IP = OI IP < OI IP > OI

Distribution rules

OI clearingOI clearing

andresidual items

OI clearingand

overpayment*Overpayment*

No

Over-payment*

Over-payment*

Advancepayment

Yes

No Yes

II.

IP = OI?Do planned

records exist?

IP = Planned record?IP limits observed?

Incoming Payment II.

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Manually Automatic

(incl. clearingother overpayments)

(incl. clearingqualified overpayments)

Rejections/overpayments

Clear customer open items

Create advance payment

Create overpayment

Carry out refund by bank transfer

Menu: Rejections/Customer accounts/Clear overpayments

Incoming Payment Postprocessing

The incoming payment postprocessing functions allow you to process incoming payments that are held in the rejections account or have been posted as advance payments or overpayments. You can use the incoming payment amount to: Clear open items; create advance and overpayments; carry out refunds by bank transfer; post discount prepayments; post amounts to revenue.

Under Rejections, you can manually edit all of the incoming payments that could not be processed. Under Customer accounts, you can manually edit all incoming payments for a customer (or several customers) which were posted as an advance payment or overpayment.

Under Clear overpayments, you can automatically process the incoming payments that were posted as qualified overpayments. You can use this program to automatically clear debit positions with qualified overpayments on a unit level (contract, finance project, customer) for assigned loans. This function is useful if the planned records have changed between the time when the incoming payment was posted and the time when the program Clear overpayments is run, for example, because of an interim debit position. Example: Planned record 500 UNI. Incoming payment 520 UNI, qualified overpayment. Debit position run, actual record 500 UNI. Overpayment cleared automatically, open item 500 UNI cleared, qualified overpayment 20 UNI.

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© SAP AG 1999

Case 2

The customer transfers more than is necessary to cover the interest and repayments due.

The payments have been cleared and the difference arising has been posted as an overpayment.

You want to refund this difference by bank transfer.How do you proceed in the system?

Processing Incoming Payments - Case 2

(C) SAP AG AC815 6-42

© SAP AG 1999

Incoming payment information

Assigned items

Loans

Contract no. 10000000

To be clearedTo be assigned

100.000.00

IP NameVal. date

Approp. of other overpymnts09/01/YYYY

PT PT Name Contract no. Accept. amountCustomer DT Text

05 Refund transfer 1000000 100.00100000000 4590 Appropr. refund transfer AP/OP

Open items Refund transferAdvance pyment

IP Postprocessing - Customer Accounts

Via the 'Customer accounts' function, you can make a refund to a customer. On the initial screen, you enter the number of the contract and execute the program. The system first displays an overview of all the advance payments or overpayments to be processed. When you select the relevant amount, the system takes you to the above screen. You can either assign the amounts to be processed manually to customer open items, or you can convert them into an advance payment by assigning the amount (equal amounts) to one of the planned records listed; or, select Refund transfer to refund the money to the customer.

(C) SAP AG AC815 6-43

© SAP AG 1999



21 1

2

146,500

Bank account146,500 33 146,500

Others3,500 1

2,359.884

1,720.83 4

Interest received

639,05 4


52,459.885 2,459.88

5 2,459.88

2,359.88100.00*100.006

6100.00

5

Incoming Payment Postprocessing: Example




(5) The customer pays by bank transfer, but overpays by 100 UNI. The credit memo to the bank account is processed using the bank statement. Postings are carried out to the bank accounts and the customer account is cleared. The amount difference is posted to an overpayment account in accordance with the rules defined in Customizing. You process this further as part of the incoming payment postprocessing.

(6) As part of the incoming payment processing, the overpayment is marked as a refund transfer and posted to a different reconciliation account (the transfer posting is not shown in the example). Starting the payment program clears the open item from the customer account; the payment medium is presented to the bank.

(C) SAP AG AC815 6-44

© SAP AG 1999

Customizing: Flow Types for Incoming Payments

Flow type

Flow category

Assets/Liab. Lending business

...IP Clearing

Relev. to CM

4530 A_Appropr. of qual. OP (IP-D)

ZVZ

0

Grouping

Posting

02 Advance payments03 Qualified overpayment04 Other overpayment05 Transfer qual. overpmnt06 Transfer other overpmnt07 Refund by bank transfer08 Transfer advance pmnt

03F4

A flow type can only be used for either an asset loan (loan given) or a liability loan (loan taken). If you want to transfer the amounts from a flow type to Cash Management, set the indicator Relevant to CM.

Payment details can (only) be used for loans not managed via customer accounts.

(C) SAP AG AC815 6-45

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FTyp

0110

0125

0110

4530

0110

Name


A_Annuity rep. debit position


A_Appropr. qual. OP (IP - D)


RFT

3210

3225

3310

4531

4535

Name

A_Interest IP

A_Annuity repayment IP

A_Interest withheld

A_Reduce qual. overpymt

A_IP fr. clrg qual. OP (int.)

Customizing

Company code 0001

Relationship

001 Incoming payments 009 IP from amounts withheld

from disbursements013 Reduction of overpayment023 IP from reduced overpayment....

F4

001

009

013

023

Offsetting Flows

For certain transactions, you have to enter the relationship between the flow types concerned. You assign the offsetting flow type (reference flow type) to a corresponding flow type. The relationship type indicates the technical relationship between the flow types. Example: An interest receivable due item is created by the debit position run; this means that flow type 0110 is posted. When you receive the customer payment, the incoming interest payment is created using flow type 3210. In order for the incoming payment to be able to close the items for which it is being made, create the relationship between these two flow types as an offsetting flow type.

Further example: The customer transfers an amount that is too high, an overpayment is created: Flow type 4530, bank clearing to overpayment. In incoming payment postprocessing, the overpayment is used to pay the interest receivable. Clearing the overpayment: Flow type 4531, overpayment to overpayment clearing. The interest debit position is cleared: Flow type 4535, overpayment clearing to customer.

See the IMG documentation for a complete description and examples of the relationship types that are relevant for Loans Management.

(C) SAP AG AC815 6-46

© SAP AG 1999

Company code 0001

ProcCat IP

01

:

09

FTyp

4505

:

4590

Name

A_Rejection appropriation

:

A_Apportion refund tr. AP/OP

Flow types IP/Rejections

Customizing: IP Postprocessing

In order to be able to create and post rejections, advance payments and overpayments when you postprocess incoming payments, you need to make certain settings for the processing category in Customizing. Processing categories are predefined in the system.

For each company code, you assign the corresponding flow types to the processing categories.

(C) SAP AG AC815 6-47

© SAP AG 1999

EvaluateEvaluateAccount statement

Posting journal

Accounting - Evaluations II

Via the Account statement' function, you can display all of the postings relating to a particular contract.

Via the 'Posting journal' function, you can view all the postings for the loans area.

(C) SAP AG AC815 6-48

© SAP AG 1999

Account statement Date 07/01/YY

From: 01/01/YY to: 12/31/YY

10000000 Brown/ 1 Main Street / Washington DC 20433Mortgage loan

PostDte05/01/YY05/01/YY05/01/YY06/30/YY06/30/YY

ValueDte05/01/YY05/01/YY05/01/YY06/30/YY06/30/YY

Doc.no.9991414

R FTyp00010165336501100125

NameDisbursementDisc. debit positionDiscount withheldInt.debit positionAnnuity rep.

Debit150,000

3,000

1,720.83639.05

Credit

3,000

FI document Loandocument

Evaluations: Loan Account Statement

You can use the 'Account statement' function to display all the relevant posting information for a loan or for all the loans for one partner. You can change the time period in the display. You can also display an overview of the open items for this contract.

From within the evaluation, you can branch to the corresponding FI (G/L) and loan (subledger) documents.

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© SAP AG 1999

- Debit position run preparation: Planned record update

- Execute debit position run

- Debit position run postprocessing: Automatic overpayment clearing

1. Generating receivables due

- Collect receivables due: Start payment programor- Wait for incoming payment by check/transfer

2. Amount due is paid by customer

Debit Position: Unit Summary

Before you carry out the debit position run, you have to update the planned record amounts for third-party loans (exchange rate) and variable interest-bearing loans (reference interest rate).

After the debit position run, start the report "Automatic clearing of open items" to clear customer credits (overpayments) with receivables due, so that the "net receivables" are open items in the customer account. Example: - Amount due on 15.10.: 100 UNI; planned record - Customer transfer on 05.10.: 80 UNI; based on the value limits in Customizing, the 80 UNI is posted as a (qualified) overpayment. - Debit position on 15.10.: 100 UNI; actual record - Automatic clearing of overpayment: Open item of 100 UNI is cleared by the 80 UNI overpayment and a residual item in the amount of 20 UNI is created. - Payment program: Collect the receivables by direct debit: 20 UNI. If the automatic clearing of overpayments had not been carried out, the payment program would have collected 100 UNI.

(C) SAP AG AC815 6-50

© SAP AG 1999

Open items

Clearing byincoming payment

Full waiverPartial waiver

Completewrite-off

Interest onarrears/dunning

OI closed OI closed OI closed

Open Items

If an open item is due and is not paid, interest on arrears, dunning interest, and dunning charges can be charged.

If an open item is not paid, it can be cleared by a waiver or a write-off. From a technical point of view, both functions are the same; however, you cannot enter a partial write-off.

You can differentiate between a waiver and a write-off by using different flow types with different account determination. For example, you could write-off amounts that you may still collect from the customer. If an amount is waived, you no longer try to collect it. Example: Open item 100.75 UNI. The customer transfers 100 UNI. The 0.75 UNI is waived.

(C) SAP AG AC815 6-51

© SAP AG 1999

Customer open items due (dunned or not dunned)

FI/loan: Determination of interest on arrears: Overdue items

Loan: Post interest on arrears

Loan: Process the batch input sessions created(to enter the interest on arrears key date in the customer master record)

Interest on arrears is an open item in the customer account

Interest on Arrears: Overview

The determination of interest on arrears is supported for loans given that are based on customer accounts.

The determination and posting of interest on arrears is controlled by two separate reports.

(C) SAP AG AC815 6-52

© SAP AG 1999

Customer selectiontoto

Customer accountCompany code

Calculation periodInterest indicator

toto

Posting control

Interest to Fin. Assets Man.

Post interest settlementsMaintain master records

Batch input session name RFDUZI00

x

Calculate Interest on ArrearsCalculate Interest on ArrearsCalculate Interest on Arrears

Overdue Items: Determination of Interest on Arrears

Other accruals/deferrals

Calculation of interest on arrears:Item interest calculation (from FI): You can calculate interest on open items that are overdue. (Note: The item interest calculation refers to customers/vendors; account balance interest calculation refers to G/L accounts).

For loans given, Loans Management uses the standard accounts receivable program for calculating interest on arrears. The standard program has been enhanced to support the transfer of interest to Loans Management (indicator Interest to Fin. Assets Man.).

For item interest calculation, you can choose the interest indicators that are defined with interest calculation type P in Customizing. The calculation of interest on arrears at loan condition level is controlled by the interest indicator.

To avoid interest on arrears being calculated on open items more than once, select the indicator Maintain master records; the batch input session specified is then created. When you process the batch input session, the key date for the last interest calculation run is entered in the customer master record; this ensures that when you recalculate interest on arrears, no interested is calculated on the open items up to the key date specified.

Interest settlement indicator: Not relevant for posting loan items; there is no special posting report.

(C) SAP AG AC815 6-53

© SAP AG 1999

Posting dateDocument dateDue onTextFlow typeInterest on arrears

Delete entries up to

Post Interest on ArrearsPost Interest on ArrearsPost Interest on Arrears

?

I

06/16/YY06/16/YY07/01/YY

Posting Interest on Arrears

The interest on arrears calculated that is transferred to the loan is posted using the above report. Using the field Delete entries up to, you can have the system save the data for the interest on arrears posted so that you can access the posting data if queries arise. All records that have been saved up to the date entered are deleted from the database.

(C) SAP AG AC815 6-54

© SAP AG 1999

Customer open items due (interest on arrears calculated/not calculated)

Dunning run: - Determination of dunning proposal- Determination of dunning interest and charges

Dunning notice printout: - Dunning notices printed- Dunning interest and charges posted

Dunning interest and charges are open items in the customer account

Dunning: Overview

In the Loans area, dunning is supported for loans given that are based on customer accounts.

(C) SAP AG AC815 6-55

© SAP AG 1999

Customer/vendormaster record

Document Basicparameters

Currentcontrols

FI LoansContract

data

General data:AddressControlsPayment

transactionsCompany code data:

Acct mgtPayment trans.Correspondence

Dunning data

Baseline date

Paymentterms

Dunning date

Dunning levelsDunning block

Dunning levels

Charges

MinimumamountsDunning textGrace days

:

Date ofdunning notice

Accountselection

Company code selection

:

Dunning settingsfor contract

Customizing

Settings for dunning in the Loans IMG

Influencing Factors for Dunning

The dunning of loan items is based on the data and settings in FI. In the Loans area, you have to either add or make alternative entries.

(C) SAP AG AC815 6-56

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Dunning area

Dunning procedure

Dunning levels

Dunning key

Dunning block

Dunning grouping

Dunning: Terms

Dunning areas are used if several organizational units within a company code are responsible for processing dunning; these are defined as dunning areas that can use different dunning procedures. You enter the dunning areas in the customer master record. On the condition detail screen for a loan, you can define one of the loan areas defined for the business partner as the area to be used for dunning open items that are due from this condition.

The dunning procedure is a defined procedure that determines how business partners are dunned. It determines: The number of dunning levels, interest indicator, dunning frequency, dunning texts, and so on. You determine the dunning procedure for a dunning area in the customer master record.

Dunning levels: Specify how often an item/account has already been dunned. Interest indicator: Interest rates defined for the dunning interest of the dunning program. You can use the dunning key to restrict the dunning levels of an item. Dunning block: Indicator that specifies why an item/account is blocked for dunning. You set this indicator manually when required.

Dunning grouping: A customer dunning grouping is no longer considered if the loan items concerned are to be dunned. The grouping is carried out using the dunning summarization levels that are defaulted in the contract and that can be assigned individually.

(C) SAP AG AC815 6-57

© SAP AG 1999

Borrower Brown/ 1 Main Street / Washington DC 20433

Partner list

Name Name/address

Brown/ 1 Main Street / Washington DC 20433

Partner900000001

Customer1000000000

Select partner (or "double-click")

Treasury - Business Partner Management

PartnerClassification Application Mortgage loan

Mainborrower

BkTy PM

900000001Natural person

R D

Loan: Business Partner Overview

You can either create a business partner in advance (in general business partner management for Treasury or in the 'Loans' menu), or define the business partner when you create a loan.

Within an application, offer, or contract, you can call up all the data for the borrower via the 'Partners' function.

From the partner overview, you can also branch to Treasury business partner management and display or edit the data in the related screens.

In the business partner overview, you can make the following settings for dunning: - Which of the loan partners is to pay the dunning charges and interest determined in the dunning run (flag P - payer for dunning) - Which of the loan partners is to receive a dunning notice (field D - dunning notice). You can set defaults for both of these fields in Customizing.

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Reconciliation account

Terms of payment

Interest indicator

Dunning data

Payment methodsGrouping key for payments

Business partner master record: Company code data

Cash management group

Posting to Customer Accounts: Business Partner

If you want to make postings via customer accounts for product types in a specific company code, you can set default values for creating customer accounts automatically in Customizing for loans. The system then uses these values when you create a customer master record. You can do this for example, to ensure that a customer relevant for loans always has a payment method with individual payment - this is required for disbursement.

In the business partner master record itself, for dunning purposes, you have to specify the following in the company code data: Dunning area, dunning procedure, dunning level, dunning block, and so on. You can specify a default dunning procedure for the automatic creation of a customer in Customizing for loans.

(C) SAP AG AC815 6-59

© SAP AG 1999

Contract - Correspondence


Correspon-dence

ManDunnLvlDunning per

No dunningLoan contract

Dunning

Dunning history

D.area D.level Last dunn.

Key dateGeneration frequency

Generate upon requestStatement number 0

External acct statement

Interest certificateKey dateProcessing type

Generate int. cert. in annual batch

In the Correspondence data, you can define the dunning procedure to be applied for the specific loan. Depending on the settings in Customizing, you can make the following specifications: The No dunning indicator determines whether a loan participates in the dunning run. The Dunning level field (set manually) is an information field. It is evaluated in drilldown reporting and is also used for the dunning run. When you are scheduling the dunning run, the manual dunning level is offered as a selection criterion. This means that all loans with a specific manual dunning level can be excluded from the dunning run.

The dunning summarization level (Dunning per) specifies whether due items for each contract are to be dunned individually, or for all contracts in a finance project, or for all contracts of one borrower together. (Summarization level for calculating the dunning interest and charges in one total per level, and for creating one dunning notice per level).

If you select the dunning summarization level Finance project, or Customer, the indicator Post charges appears. If you set this indicator: Dunning charges and interest are posted to this contract during the dunning run.

The dunning history gives you information on the dunning measures so far and the current dunning status. Whether or not you can change the dunning history depends on the settings in Customizing.

You can control the fields for no dunning, manual dunning level, dunning summarization level via field selection for the status (display, suppress, ...).

(C) SAP AG AC815 6-60

© SAP AG 1999

Master Documents

Dunningproposal

Process

Dunning levelDunning block

Test print

Process

Dunning levelDunning block

Test print

CurrentCurrentcontrolscontrols

BasicBasicparametersparameters

Dunningnotices

Dunninglist

- Execution -

- Print -

LoanLoanselectionselection

Dunning Run

All overdue items (according to net due date) are dunned. The dunning level is based on the net due date, the number of days in arrears, the dunning procedure.

Firstly, you define the parameters for the dunning run. Based on the date of issue, the system selects the items to be dunned. Which dunning notice is issued depends on:

the dunning procedure in the master record, the number of days the item is in arrears, and the controls as to how many days in arrears trigger which dunning level.

You can process the dunning process created either completely, (without using the selection options) or in sections. You can lower the new item dunning level. In addition, you can set or reset a blocking reason.

The dunning charges and interest determined are debited during the dunning notice printout. If only loan items are to be dunned in the dunning run, and no items in the customer account that come from other applications, when you maintain the dunning run parameters, enter "1" in the field BSID-VERTT in the dynamic selections.

As part of the dunning program, you can select the loan items to be dunned according to specific loan fields (product type, contract currency, ...). When you are scheduling the dunning run, you can access the selection screen from the parameter maintenance by selecting Environment --> Treasury loans. These restrictions from the loan selection are additional and are based on the customer interval selected as well as on the additional selections.

(C) SAP AG AC815 6-61

© SAP AG 1999

-> Financial Accounting -> Accounts Receivable -> Business Transactions -> Dunning

Dunning levels Min. amounts Dunn. charges Dunning texts

Basic parameters

Company code data Sort fields Sender details

Dunning areas Dunning keys Dunning block reasons

Interest Dunning grouping

Dunning procedure

Customizing: Financial Accounting Dunning

(C) SAP AG AC815 6-62

© SAP AG 1999

Number range

Dunning activeSample recNoRg

01 Internal

Basic settings

No. char.

Company CodeCompany Code--Dependent Settings for Product TypeDependent Settings for Product Type

App.fun.

281

282

FTyp

3155

3150

Name

A_Dunning charges debit position

A_Dunning interest debit position

Payt trans. ind.

1

1

Assign Flow Types to Condition Groups for Each ApplicationAssign Flow Types to Condition Groups for Each Application

Customizing: Dunning - Loans (1)

In order to use dunning in Loans Management, you have to activate dunning in the company code for product types managed via customer accounts.

To post dunning charges and interest, you have to assign the appropriate flow types to the relevant application functions (per condition group).

(C) SAP AG AC815 6-63

© SAP AG 1999

Loans

+ Functions

Dunning

I. Basic Settings

+_

_

_

III. Exclude Flow Types from Dunning Run

V. Flag Payment Methods for Incoming Payments asDunnableVI. Assign Forms for Loans Dunning to Dunning Level

VII. Define Forms for Legal Dunning Procedure

IV. Assign Dunning Parameters and Limit Amount toApplic./Role Cat.

II. Define Manual Dunning Level


You make loan-specific settings for dunning in Customizing as shown above. II. Define Manual Dunning Level (selection criteria in the dunning run, can be evaluated in drilldown reporting).

III. You can exclude individual flow types from the dunning run or the calculation of dunning interest: - Set flag 1: Customer items with this flow type are not dunned. - Set flag 2: The system does not calculate interest for open items of this flow type during the dunning run. Flow types excluded from the dunning run are not subject to the calculation of dunning interest either. Interest may or may not be calculated on flow types included in the dunning run.

V. Payment methods that are flagged for incoming payments in FI are not dunned by the standard FI dunning program. If dunning is required however, flag the payment methods as dunnable; for example: Payment method for incoming transfers.

VI. and VII. For dunning in the Loans area, you can assign forms to each dunning procedure for individual dunning levels.

(C) SAP AG AC815 6-64

© SAP AG 1999

Loan contractFinance projectMain borrower

FPBO

DS Short textSummarization level for dunning letterx

Assign role category to applicationFix limit amount for currency

Mortgage loan

Mortgage loan

Mortgage loan

0010

0010

0010

0100

0200

0201

Main borrower

Guarantor

Alternative payer

App. Appl. description RC Name of role cat.

PTyp Text D P

Mortgage loan30A

DS

I. Basic Settings

VI. Dunning Parameters and Limits

F4

Detail

Basic setting:Limit dunning level

Default:Dunning letterDunning charges/interest payer

B

No posting of dunning charges and interestSmallest contr.no. of dunn. summariztn levelIndividual using flag on contract

12

Short textPosting var. for dun. charges/int. fr. dun. run x2 FP


Basic settings - D: Dunning history can only be displayed (flag set) or changed (flag not set) in the contract

(updated from the dunning run). - DS: The dunning summarization level determines the level at which open items in a dunning

run are summarized for a dunning letter: One dunning letter per contract/finance project number/main borrower; default value in contract.

- P: Posting variant specification used to determine the contract to which the dunning charges and interest from the dunning run are posted when the dunning letter is printed; default value in the contract. (Note: For posting variant 2 and dunning summarization level finance project or main borrower, the field Charges posting appears in the contract).

You can define specific dunning parameters and defaults for each application and role category: Dunning parameters: Alternative settings to the procedure defined for the dunning procedure: - Dunning level limit: The partner assigned to the loan using this role category only receives a

dunning letter once the dunning level for the letter has reached the dunning level defined here; - Dunning letter limit: The partner assigned to the loan using this role category only receives a

dunning letter once the total of the items to be dunned for the dunning letter has reached the total defined here.

Defaults: Type of dunning letter; payer of dunning interest and charges (prerequisite: Business partner with customer role category).

(C) SAP AG AC815 6-65

© SAP AG 1999

Loan 10000000

Flows

0125 Annuity rep. 09/03/YY 09/03/YY 969.73 UNI 000000055

Overdue items

Contract data Correspond.Cash flow Overdue items

M FType Name Due on PostDate Amount Curr. P P M Ref. doc.

1

1

Open Items: Waiver/Write-Off

Verzicht Tilgung

Flow type Text Due on Sett. amount Curr. IP

09/30/YY 969.75 UNI 21P

34152

The waiver clears debit items for goodwill or other reasons at the expense of the loan provider. This function is not a reversal. You do not enter a waiver for a debit item directly, instead, you enter it via Overdue items within the function Open items - Waiver.

The system copies the due date and the amount of the waiver from the items that are being waived. The open items that you select to be waived are blocked against clearing by other payment transactions.

You can save the transaction as a planned record or post it immediately. When you post the transaction, the system posts and generates an actual record.

Write-offs are carried out in the same way.

(C) SAP AG AC815 6-66

© SAP AG 1999

Posting log

10/15/YY

CoCdePK

0001

40

17

Doc. numberAccount

1000000000Charles Brown

Date

10/15/YY

Doc. typeG/L

DZ

204000Other expense150100Repayment receivables

Contract numberCurr.

0000010000000

UNI

UNI

969.75 D

969.75 C

Flow type

3415Repayment waiver

ContrType

1

Open items: Posting

(C) SAP AG AC815 6-67

© SAP AG 1999

App.fun.

202203

FTyp

34153510

Name

A_Repayment waiverA_Interest write-off

Payt trans. ind.

11

Relationship 025 Waiver 026 Write-offs

FTyp

01250110

Name

A_Annuity rep. A_Int.debit position

Name

A_Repayment waiverA_Interest write-off

RFT

34153510

Assign flow types to application function

Assign offsetting flows

025026

Customizing: Waiver/Write-Off Debit Position

To execute the waiver and write-off functions, you have to make settings in Customizing. Via the IMG activity Assign Flow Types to Application Function, you define which flow types are automatically defaulted by the system in the relevant application, for example, 3415 Repayment waiver, 3510 Interest write-off. When you define the flow types for waiver/write-off, you use different flow types depending on whether the waiver/write-off has an effect on the calculation of capital amounts (for example, repayment waiver) or not (for example, waiver of costs). Example: Repayment waiver: Flow type SVER; Waiver of interest, costs, and so on: VERZ. Repayment write-off: Flow type SABS; Write-off of interest, costs, and so on: EABS. For the calculation type for the waiver or write-off flow type, select the calculation type of the corresponding type; for example, for flow type 3415 Waiver of annuity repayment, assign the calculation type of the flow type 0125 Annuity repayment (TTAN).

In addition, enter the reference flow type for the item that is being waived or written off. Maintain the table based on the company code and a relationship. The relevant relationships here are 025 Waiver, and 026 Write-off.

(C) SAP AG AC815 6-68

© SAP AG 1999

Post incoming payments using the manual account statement

Explain how incoming payments are processed in the system (correct amounts, amounts that are too high, amounts that are too low)


Payments Due: Unit Summary

(C) SAP AG AC815 6-69

Payments due Exercises

Unit: Payments Due


You want to generate the open items for the expected interest payment and repayment using the automatic debit position run.

1 Carry out the automatic debit position run:

1-1 Simulate the run for your loan first.

- Company code: TRXX ( XX = your group ID)

- Contract number

- The debit position date for the first interest payment and repayment instalment.

Execute the program and check the posting log.

If there are no errors, carry out the actual debit position run using the same selection criteria.

1-2 Return to the contract and look at the cash flow. Check the account statement in the contract and the open items that have been posted to the customer account in FI. What changes do you observe now that the debit position run has been carried out?

(C) SAP AG AC815 6-70

Unit: Payments Due

• Incoming payments: Manual processing

The interest payment and the repayment have been credited to your bank account. You now want to enter the incoming payment in the system.

2 Use the manual bank statement to enter incoming payment items:

2-1 Check the default settings on the initial screen:

• Internal bank determination

• Start variant: DAR01

• Further processing as batch input, generation online

Enter the following details to process the manual bank statement:

• House bank: DB

• Account ID: GIRUN

• The statement number and the corresponding statement date

• Opening balance: 0

• Closing balance: Total of interest and repayment amounts

• Posting date

• Session names for the bank posting and subledger posting (for example, BAPO and SLPO)

2-2 Enter the incoming payment item in the account statement.

(C) SAP AG AC815 6-71

Save your entries (in the account statement itself and then again on the initial screen!).

2-3 Process your batch input sessions (only display errors).

3 Check the account statement in the contract and the open items that have been posted to the customer account in FI.

What changes can you see now that the incoming payments have been processed?

(C) SAP AG AC815 6-72

Unit: Payments Due

• Customizing

You want to check the settings in Customizing.

4 Consider the Customizing settings for the automatic debit position run:

4-1 Which G/L account is assigned to the account assignment reference for your contract?

4-2 Which flow type is assigned to the automatic debit position run for interest?

4-3 Which account symbols are assigned to the posting record for the automatic debit position run for interest?

4-4 Which reconciliation account is posted to?

(C) SAP AG AC815 6-73

Unit: Payments Due


You want to determine the interest payments and repayments due for the next period and then create debit positions using the due date list.

Determine the next interest payments and repayments due automatically using the due date list.

5 Start the report for determining the due items for planned records. Enter the following selection criteria:

• Company code: TRXX ( XX = your group ID)

• The number of your contract

• The year end as the due date

6 Carry out the debit position run for the next planned records due.

(C) SAP AG AC815 6-74

Unit: Payments Due

• Waiving open items

You have already generated open items for the next interest payment and repayment using the automatic debit position run. At this stage, your borrower informs you that he or she is not in a position to make the full payment.

7 Enter a partial waiver for the open items.

• Enter the company code and the loan.

• Select the overdue items you want to waive.

Post the partial waiver immediately without simulating the posting first.

8 Return to the contract and look at the cash flow. How is the cash flow affected by the partial waiver?

(C) SAP AG AC815 6-75

Payments Due Solutions

Unit: Payments Due Topic: Automatic debit position run for interest payments

and repayments

1 Automatic debit position run:

1-1 Execution

→ Accounting

→ Treasury

→ Loans

→ Accounting

→ Execute posting: Per contract

→ Post individual loan

Start the report by selecting Execute, and check the posting log.

To carry out an update run, deactivate the field Test run.

1-2 Contract:

→ Accounting

→Treasury

→ Loans


→ Mortgage Loan

→ Contract

→ Display

Call up your contract and display the cash flow. On the basic data screen, you can display the account statement via Extras → Account statement, and then branch to the FI document.

(C) SAP AG AC815 6-76

Unit: Payments Due Topic: Incoming payments: Manual processing

2 Entering incoming payments using the manual bank statement.

2-1 Define the settings and specifications for the manual account statement via

→ Accounting

→ Treasury

→ Loans

→ Accounting

→ Incoming bank statement

→ Enter manually

Via Settings → Specifications, enter the details from the exercise.

Confirm your entries with Enter, and maintain the entry screen in accordance with the specifications.

(C) SAP AG AC815 6-77

2-2 Confirm the entries in 2-1 with Enter. This takes you to the entry screen for the manual account statement.

Maintain the account statement as follows:

• Transaction type 051

• Value date (see planned principle actual record)

• Amount

• (Customer number)

• Contract type 1

• Contract number

Save your entries. Post the statement and look at the posting log.

2-3 Process the batch input sessions via

→ System

→ Services

→ Batch input

→ Sessions

Select and process the session BAPO, selecting process mode Display errors only. Then select and process session SLPO.

3 Check the cash flow:

→ Accounting

→ Treasury

→ Loans


→ Mortgage Loan

→ Display contract

Select Cash flow.

You can display the account statement via Extras → Account statement, and then check the incoming payments via Open items or Display FI document.

(C) SAP AG AC815 6-78

Unit: Payments Due Topic: Customizing

4 You can access Customizing via

→ Tools

→ Accelerated SAP

→ Customizing

→ Edit project

→ Goto

→ SAP Reference IMG

4-1 General ledger account for the account assignment reference:

→ Treasury


→ Loans

→ Functions

→ Accounting


→ Define Account Assignment Reference

Solution: G/L account 46020

(C) SAP AG AC815 6-79

4-2 Assignment of flow type:

→ Treasury


→ Loans


→ Flow Types

→ Define Flow Types

Solution: Flow type 0110

4-3 Assignment of account symbols:

→ Treasury


→ Loans

→ Functions

→ Accounting


→ Define Account Determination

Solution: 2.1.2 and 4.1.1

4-4 You can determine the reconciliation account via the same path: Select Accounts (chart of accounts INT).

Solution: Reconciliation account 152050

(C) SAP AG AC815 6-80

Unit: Payments Due Topic: Automatic debit position run for interest payments

and repayments

5 Due date list:

→ Accounting

→ Treasury

→ Loans

→ Accounting

→ Execute posting: Mass processing

→ Preparation

→ Due date list for planned records

Enter your selection criteria and start the report.

6 Execute debit position run:

→ Accounting

→ Treasury

→ Loans

→ Accounting

→ Execute posting: Per contract

→ Post individual loan

Alternatively, you can post the debit position run from the due date list by selecting Post.

(C) SAP AG AC815 6-81

Unit: Payments Due Topic: Waiving open items

7 Entering a waiver:

→ Accounting

→ Treasury

→ Loans

→ Accounting

→ Receivables

→ Waive

→ Execute

Enter the company code and loan number.

Via Overdue items, you can display the open items

for the contract.

Select the items you want to waive and then via Goto → Back, return to the overview screen.

Select the flow type and Post the waiver without simulating the posting.

8 Check the cash flow:

→ Accounting

→ Treasury

→ Loans


→ Mortgage Loan


Select Cash flow.


© SAP AG 1999

Accruals/deferrals

Valuation

Summarization

Information system

Customizing:

- Accruals/deferrals- Valuation- Information system

Contents

Closing Operations


© SAP AG 1999

Enter accruals and deferrals for a loan portfolio and valuate the portfolio for accounting purposes

Use summarization to improve performance

Use the information system


Closing Operation: Unit Objectives


© SAP AG 1999


Rollover



Disbursement

Course overview


Loan contract

Payments due

Closing operations



© SAP AG 1999

At the end of the month, you want to create interim financial statements. In order to do this, you have to enter accruals and deferrals for the loan portfolio and valuate the portfolio.

Closing Operations: Business Scenario


© SAP AG 1999

- Create loan- Business partner- Conditions- Correspondence- Disburse/post loan- Integration with CM- Integration with FI- Post amounts due- Incoming payment(post)processing

InterestedInterested ApplAppl. Offer Contract . Offer Contract DisburseDisburse-- Other RolloverRolloverpartyparty mentment activities

- Accrual/deferral- Valuation- Summarization- Information system

Transaction Management Portfolio/Accounting



© SAP AG 1999

Accruals/deferrals:- Reset procedure (for interest, discount)- Difference procedure (for discount)

Reversing accruals/deferrals

Resetting accruals/deferrals(for reset procedure)

Accruals/Deferrals: Overview

You calculate accruals and deferrals in order to assign income and expenditure to the correct period in accordance with accounting principles.

The accruals/deferrals procedure describes how the expense and revenue accounts are updated. The accruals and deferrals are based on the relevant movements of the business operations selected up to the key date. For each movement, the accrual/deferral amount is determined and appropriate movements are created. You can execute the accruals/deferrals run as a test run (accruals/deferrals log), or you can post the accruals/deferrals immediately (accruals/deferrals log and posting log).

If you carry out accruals/deferrals using the reset procedure, you then carry out the corresponding reset of the accruals/deferrals separately using the function Reset accruals/deferrals.

You can reverse accruals that have been posted or reset via the function Reverse accruals/deferrals. If you have posted an accrual/deferral and a reset, you have to reverse the reset before you can reverse the accrual/deferral. If you want to reverse several discount accrual/deferrals, you do this in reverse chronological order.


© SAP AG 1999

Reset procedure(R/3 Loans Management:for interest, discount)

Difference procedure(R/3 Loans Management:for discount)

Linear (time-based)

Interest-based

Financial mathematical*

Accrual/deferral procedures

Accrual/deferral methods

* Not for the Loans area

Accruals/Deferrals: Procedures/Methods

The accruals/deferrals procedure describes how the expense and revenue accounts are updated. Using the reset procedure, the relevant time-based portion is posted on the key date, and then reset, usually on the next working day. If however, you use the difference procedure, the proportion that is posted is not reset. The next time you execute the accruals/deferrals run, only the difference amount is posted.

The accruals/deferrals methods define how the accruals/deferrals amounts are determined. The linear calculation is carried out on a time basis. The interest-based calculation, which is supported for discounts, calculates the discount amount for which an accrual/deferral is to be posted in proportion to the interest amount that is due for the accruals/deferrals period in relation to the total of the remaining interest. The financial mathematical method is not supported for the loans area.


© SAP AG 1999

Accruals/deferrals for closing operations

01.11Payment day

for interest1200 UNI

31.12Accruals/deferrals

key date

30.04Due date

forinterest payment

1200 UNI

11/01: Interest payment in advance, 1200 UNI

Financial statements created on 12/31 -> Accrual/deferral of 800 UNI

02.01

Reset

01/02: Accrual/deferral of 800 UNI is reset

Accruals/Deferrals: Reset Procedure

The above is an example of a deferred interest payment. A deferral must be calculated for this amount as part of the closing operations for the financial statements. 11/01: Flow type 0110: Debit position: Bank clearing to interest revenue 1200 UNI Incoming payment: Bank to bank clearing 1200 UNI 12/31: Flow type 8304: Deferral: Interest revenue to deferrals 800 UNI 01/02: Flow type 8323: Reset deferral: Deferral to interest revenue 800 UNI 04/31:


© SAP AG 1999

Company codeProduct typeLoan .Discount/premium acc./def.Other accruals/deferrals

Accrual/deferral key date

Test run

000130A10000001

ToToTo

12/31/YY

x

Accruals/Deferrals: Execute

(C) SAP AG AC815 7-10

© SAP AG 1999

Linear

8301

0001

1

Company code

Flow type

Acc./defer. method

0110 A_Interest debit position

Reset procedure

8321

8304

8323

Accrual

Accrual reset

Deferral

Deferral reset

A_Accr.: Other rec. to revenue

A_Accr.: Revenue to other rec.

A_Def.: Revenue to def. income

A_Def. reset: Def. inc. to rev.

Difference procedure

-> Check account determination

Customizing: Accruals/Deferrals I

You maintain the flow types that are to be considered in an accruals/deferrals run in a special table. You have to define the method and the procedure for every flow type for which accruals/deferrals are to be created. For the procedures, specify the corresponding accruals/deferrals flow types that are to be posted. You have to make the settings in the account determination for all flow types. Example: 0110 Interest: Bank clearing to interest received 8301 Accrual: Receivable to interest revenue 8321 Accrual reset: Interest revenue to receivable

(C) SAP AG AC815 7-11

© SAP AG 1999

0001Company code

Flow type 0165 A_Discount debit position

Interest basis for flow type

Interest Name0110 A_Interest debit position

Customizing: Accruals/Deferrals II

If you want to create an accrual/deferral for a discount in proportion to the interest, you must also define the interest amounts that the calculation is to be based on (which condition type).

The interest-based calculation, which is supported for discounts, calculates the discount amount for which an accrual/deferral is to be created in proportion to the interest amount. Base calculation: Numerator/denominator. Numerator: Total interest (from disbursement date or last selection date to current date) Denominator: (From disbursement date or last selection date to "Fixed to" date in condition header)

(C) SAP AG AC815 7-12

© SAP AG 1999

Maintain exchange ratesValuation logPosting log

Foreign currency loansBalance sheet valuation

Valuation: Balance Sheet Valuation

You have to valuate foreign currency loans for the (monthly, annual) closing operations. You can valuate loan portfolios at any key date. This key date valuation is the accounting valuation of the portfolio at a specific key date using the exchange rate valid at the key date.

The R/3 functions are not however fully available for foreign currency loans based on customer accounts. The following functions are available:

- Reversal of incoming payments - Partial payments - Automatic clearing of overpayments - Disbursement with withholding - Waiver

For more information, see: Note 75103

You set the valuation parameters in Customizing.

(C) SAP AG AC815 7-13

© SAP AG 1999

Product typeContract currency...

ToToTo

...

...

...

Selections

Company codeContract number

ToTo

Parameters for foreign curr. valuation

Key date

Valuation principleRate calculationSimulation/testReset valuation

Balance Sheet Valuation: Initial Screen

You select the loans that are subject to a balance sheet valuation for accounting purposes via the selection criteria.

The following parameters are available: - Key date: Date for which the balance sheet is created and the exchange rate is used. - Valuation principle: This principle is defined in Customizing and determines whether, when a

difference arises between the exchange rate book price and the valuation price, a write-off or a write-up should, or may, be carried out.

- Rate calculation indicator: Defines which exchange rate type is used, for example, M for middle rate.

- You can execute the valuation as a simulation, test, or update run: If you simulate the run, a valuation list is output. If you execute a test run, the account determination is checked, and in addition to the valuation list, the (test) posting log is also displayed. An update run carries out the relevant postings and updates Financial Accounting.

- If you select the Reset valuation indicator, the valuation postings are automatically reset on the following day (key date + 1). This function is useful if you want to carry out an interim valuation for information purposes.

(C) SAP AG AC815 7-14

© SAP AG 1999

Posting log

40 280010 UNI 7,000.00 DWrite-off fin. asset

50 46020 UNI 7,000.00 COther loans

TR00 1000006 30AUSD 100,000 150,000.00 1.50000

140,000.00 1.40000147,000.00 1.47000

7,000.00- 140,000.00 1.40000

CoCd Loan numberCurrency Rem. capital Acquisition value Acquis. rateExch. rate date Curr. value Curr. price

Old book value Old book priceValuation gain/loss New book value New book price

Valuation log

Balance Sheet Valuation: Logs

(C) SAP AG AC815 7-15

© SAP AG 1999

Valuation principle

Valuation method Valuation rules

11

One-step Two-step

22 33- 0 Zero - 0 Zero- 2 To key date value - 2 To acquis. value

- 4 To key date value

Valuation loss Valuation gain

Valuation: Defining Principles

You define one valuation method and selected valuation rules for every valuation principle. The valuation methods are defined by the system. Two-step methods are required for the balance sheet valuation of securities, since this means that you can deal with a security price and an exchange rate separately. The one-step method is relevant for the loans area.

(C) SAP AG AC815 7-16

© SAP AG 1999

0 No valuation loss1 (Currently not supported)2 Valuation loss up to key date value

0 No valuation gain1 (Currently not supported)2 Valuation gain up to acquisition value3 (Currently not supported)4 Valuation gain up to key date value

Valuation loss

Valuation gain

Valuation: Write-Off/Write-Up Options

You define the valuation rules specified in the valuation principle by selecting the "write-off and write-up options" relevant for this principle.

For a loan given, a reduction in the balance sheet value due to a revaluation (write-off) represents an exchange rate loss; for a loan taken however, this represents an exchange rate gain. For a loan given, an increase in the balance sheet value due to a revaluation (write-up) represents an exchange rate gain; for a loan taken however, this represents an exchange rate loss.

(C) SAP AG AC815 7-17

© SAP AG 1999

Valuation principleName of valuation principle

Valuation method 1

Valuation lossValuation gain

Strict lowest value principle101

2

0

Valuation loss up to key date value

No valuation gain

Valuation: Example of the One-Step Principle

Example: Strict lowest value principle, full valuation loss, no valuation gain.

(C) SAP AG AC815 7-18

© SAP AG 1999

Problem: Performance

(in the form of total carryforward records in a table)

Cumulation of condition-based,regular accounting documents for each flow type in the form of carryforward records

Solution: Document data summarization

Summarization/Reorganization: Overview

Initial situation: Performance problems for runtime-intensive applications as a result of a high portfolio volume, longer runtimes, and large amounts of documents.

Critical points (technical view): Quantity of documents to be read from the database Quantity of documents to be processed by the application Currently, not the quantity of documents on the database!

Solution: Document data summarization in the form of total carryforward records in a table. On a key date, a summarization function writes carryforward or totals records from documents posted to a table for each loan.

Example: Total of previous repayments. Applications that read documents and process them further can access the carryforward records generated. If there are no valid carryforward records, the original documents are read.

Applications that carry out changes in summarized periods (for example, reversal) flag the summarization as invalid.

(C) SAP AG AC815 7-19

© SAP AG 1999

xxxx

x

Documents Documents

Carryforwards

Carryforwardrecords (III)

Carryforwardrecords (I)

Today

3 months3 years

System performance optimization

System performance optimization and subsequent archiving (future releases)

Management data

Original documents in the system

Original documents archived

Time

Archiving Summarization Originaldocuments

Summarization: Carryforward Records

The summarized documents are flagged, the summarization records are available as "carryforward". The information about the summarization (when the summarization was carried out, and so on) is retained as management data.

The following applications can work with summarized data: - Update planned records - 'Loans to partner' overview (calculation of capital amounts) - Time-based accruals/deferrals - Planned: Successive integration in additional applications

For the summarization, you should select a period that lies approximately 3 - 5 months in the past. This reduces the probability that subsequent business transactions have to access the summarized period.

(C) SAP AG AC815 7-20

© SAP AG 1999

Company codeContract number

Call type

Carry out summarizationInvalidate summarized recordsDelete summarized recordsDisplay information

Summarization: Call Types

The following call types are available: - Carry out summarization - Invalidate summarized records: The summarization of the loans selected is flagged as invalid.

The summarization records remain on the database. Example: If, after the summarization has been carried out, you make a posting that falls within the summarization period, the summarization records are no longer up to date; they are automatically invalidated by the application.

- Delete summarized records: The summarized records are deleted from the database.

- Display information. Due to the long runtime for the summarization, and problems with blocks, you should carry out the summarization in the background.

(C) SAP AG AC815 7-21

© SAP AG 1999

Reporting

Standard Drilldownreports reports

Standard Drilldownreports reports

Application-specificTR information system

Information System: Overview

Standard reports are reports delivered by SAP and you cannot usually change them. Drilldown reports are reports that you can configure to meet your requirements. Example reports are delivered by SAP.

(C) SAP AG AC815 7-22

© SAP AG 1999

Loans Management

AccountingEvaluations for accounting

Account statementDue date list for posted docsBalance listPosting journalCustomer account

Display line itemsAnalysis

Information systemTransactionPortfolio/portfolio trendRevenue analysisAccountingRisk settingsMaster data

Information System: Loans

(C) SAP AG AC815 7-23

© SAP AG 1999

Bus

ines

s pa

rtne

r

Brown

Miller

Fisher

Report list

Currency

CHFUSD

DEM

Product type

Policy loansMortgage loans Borrower's

note

Drilldown Reporting Principle

(C) SAP AG AC815 7-24

© SAP AG 1999

Free navigation at all levels (characteristics)Exception reporting provides a visual warning when critical values deviate from expectationsHierarchy processing to reflect external hierarchies (for example, flow type hierarchies)Graphics for improved visualization of payment figuresAnalysis functions for classification of dataData mining for the automatic identification of conspicuous values in the datasetCurrency translation to determine influences on currencies

Drilldown Reporting Functions

(C) SAP AG AC815 7-25

© SAP AG 1999

Drilldown reporting structurePa

rtner

Product type Borrowing/sale

1

Product type

2Pa

rtner

Currency

Product type

Currency

Company codeTraderProduct typePortfolioSecurities account

x

PartnerFinancial transactionCurrencyAcct assignment ref.

x

x

Investment/purchasex

Partn

er

Currency

Money marketMoney marketForeign Foreign

exchangeexchangeDerivativesDerivativesSecuritiesSecurities

LoansLoans

3

Partn

er

Product type

Currency

Multidimensional Dynamic Drilldown Reporting

Within drilldown reporting, you have various options for navigation: Drilldown - this enables you to navigate through drilldown reporting levels and change the sequence of characteristics in the search strategy.

Change drilldown - this allows you to replace one characteristic with another. Deactivate characteristics - you can calculate totals for all the values of one characteristic. Sort characteristics - to change the search strategy, that is, the sequence for navigation through the characteristics.

Initial list - this allows you to display the original list. Detail list - enables you to branch to the details of a selected characteristic value. Hierarchy - this displays the list as a hierarchy.

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Key figuresKey figures Charact.Charact.

Save

ListsGraphicsNavigation/drilldownSave

BatchBatchlistlist

CreateChangeChangeExecute

Drilldown reportDrilldown report

...Mail ExcelWinword

FormsFormsFormsForms

ReportReportdirectorydirectory

Drilldown Reporting Architecture

You can enter characteristics, key figures, and forms in the definition of reports. The result of a report is several interactive lists that you can display on the screen. You can also print the reports, export them to Word or Excel, or store them in a file.

The form describes the content and structure of the reports. You can use it as the basis for a report that is then completed during report definition. You can also create ad hoc reports without using a form.

Characteristics reflect the classification options for the dataset, for example, company code, business partner, product type.

You can include the characteristics in the form as well as in the report. Key figures are not just amounts and quantities; you can use a key figure transaction to define additional key figures from existing ones (key figure tree). Example: Assets = Investment/purchase - Borrowing/sale

You can select the key figures in the form or in the report.

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Enter accruals and deferrals for a loan portfolio and valuate the portfolio for accounting purposes

Use summarization to improve performance

Use the information system


Closing Operations: Unit Summary


© SAP AG 1999

Changing the cash flow

Business transactions:- Entering charges individually- Entering charges as business operations- Unscheduled repayments- Posting individual records

Balance sheet transfer

Capital transfer

Reversal

Customizing

Contents

Special Cases


© SAP AG 1999

Enter unscheduled or additional operations

Examples:- Unscheduled repayments- Additional charges


Special Cases: Unit Objectives


© SAP AG 1999

Loans managementwithin SAP Treasury

Rollover

Special CasesComplete processincluding master data


Disbursement

Course overview


Loan contract

Payments due

Closing operations



© SAP AG 1999

You want to issue a customer with an invoice for additional charges.

Another customer makes an unscheduled repayment.

Special Cases: Business Scenario


© SAP AG 1999

- Create loan- Business partner- Conditions- Correspondence- Disburse/post loan- Integration with CM- Integration with FI- Post amounts due- Incoming payment (post)processing

InterestedInterested ApplAppl. Offer Contract . Offer Contract DisburseDisburse-- Other RolloverRolloverpartyparty mentment activities

- Accrual/deferral- Valuation- Summarization- Information system- Special cases




© SAP AG 1999


Due on

05/01/YY06/30/YY06/30/YY09/30/YY09/30/YY12/31/YY12/31/YY03/31/YY+103/31/YY+106/30/YY+106/30/YY+109/30/YY+109/30/YY+112/31/YY+112/31/YY+103/31/YY+203/31/YY+2


1,166.671,333.331,726.672,000.001,691.672,000.001,656.672,000.001,621.672,000.001,551.672,000.001,516.672,000.001,481.672,000.00


Name P

PPPPPPPPPPPPPPPPP

FTyp00010110012001100120011001200110012001100120011001200110012001100120

A_Loan disbursem.A_Interest deb.pos.A_Instalment repmtA_Interest deb.pos.A_Instalment repmtA_Interest deb.pos.A_Instalment repmtA_Interest deb.pos.A_Instalment repmtA_Interest deb.pos.A_Instalment repmtA_Interest deb.pos.A_Instalment repmtA_Interest deb.pos.A_Instalment repmtA_Interest deb.pos.A_Instalment repmt

Basic dataBasic data ConditionsConditions CollateralCollateral ObjectsObjects Correspond.Correspond.

Loans - Cash Flow

Flow types explain the different changes in the cash flows. Together, all the transaction flows form the basis for the financial mathematical generation of the cash flow and further processing, for example, posting. The cash flow contains all the flow records in chronological order, and is used to update the transaction data in Financial Accounting, Cash Management, and Market Risk Management. Typical flow types are, for example, fixed or variable interest, repayments, or commission.

The cash flow display is linked to the ABAP List Viewer.


© SAP AG 1999

Changing condition-based flows using the cash flow

Prerequisites:You have posted a disbursement (complete or partial disbursement)

Conditions can be changed(this is not the case, for example, if there is a planned disbursement)

Changeable flows:Only condition-based flows

Only planned flows for the current fixed interest period

No capital reductions or increases

No final repayments

Cash Flow: Manual Changes

In some cases, it is useful to be able to change a planned record quickly and easily, mainly for loans taken.

Changeable data: Due date Payment date Clearing date for alternative clearing Amount Payer data/payment details: - Partner - Partner bank type - Payment method - Dunning area - Dunning block


© SAP AG 1999

Change contract --> Cash flow --> Select flow record --> Extras --> Change flow

Manual changes to flows in the cash flow

12/31/YY 12/31/YY 5,000.00 0120 A_Inst. rep.

Due date Payment date Amount FlowType Text

Icon for changing

Icon for fixing

Cash Flow: Executing Changes

You can change flows manually. If you want these changes to be considered when you recalculate the cash flow, you have to fix the changes. If you fix the due date/payment date, a calendar icon appears. If you fix all data for this flow, a lock icon appears.


© SAP AG 1999


Due on

05/01/YY06/30/YY06/30/YY09/30/YY09/30/YY12/31/YY12/31/YY03/31/YY+103/31/YY+106/30/YY+106/30/YY+109/30/YY+109/30/YY+112/31/YY+112/31/YY+103/31/YY+203/31/YY+2


1,166.671,333.331.726.672,000.001,691.675,000.001,656.672,000.001,621.672,000.001,551.672,000.001,516.672,000.001,481.672,000.00


Name P

PPPPPPPPPPPPPPPPP

FTyp00010110012001100120011001200110012001100120011001200110012001100120

A_Loan disbursem.A_Interest deb.pos.A_Instalment repmtA_Interest deb.pos.A_Instalment repmtA_Interest deb.pos.A_Instalment repmtA_Interest deb.pos.A_Instalment repmtA_Interest deb.pos.A_Instalment repmtA_Interest deb.pos.A_Instalment repmtA_Interest deb.pos.A_Instalment repmtA_Interest deb.pos.A_Instalment repmt

Basic view

Due date view

Calculation view

Posting view

View for manual changes

......

Loans - Cash Flow: Display Variants

The cash flow display is linked to the ABAP List Viewer. You can use the display variants to focus on different information. There is a predefined view, for example, for manual changes.

The cash flow is recalculated based on the fixed changes. Should the changes result in new annuity or instalment amounts, or a reduction in the term, these flows must be calculated separately to take effect.

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What is a business operation?

A loan transaction that is the source of one or more flow records (for example, unscheduled repayment, charges)Flow records are not posted using the automatic debit position run, they must be triggered explicitly for this operation

Business Operations for Contracts

The function "Business operation" triggers the "Manual posting" function.

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Reversed

Deleted

Calculated as asimulatedrecord in thecash flow

Saved as a planned record on thedatabase

Saved as an actual record on thedatabase

Operation status:

Activate (release where necessary, if the release procedure is activated)

DeleteChange

Delete

Reverse

Post

Entered/saved

Activated

Posted

Business Operation: Process

A business operation can pass through three statuses, that is, it is first entered, then activated, and then posted. You can also enter a business operation and post it immediately.

Business operations that you enter are included as simulated records when you simulate the cash flow (as part of the business operation processing). If you delete the business operation, the history cannot be traced. When you activate a business operation, the system writes the flows to the database as planned records. The flow records are fixed and can no longer be changed. If you delete a business operation that has been activated, its history can be traced. You cannot delete posted business operations, but you can reverse them.

If the release procedure is activated, business operations must be released between the statuses entered and activated. In other words, if a business operation has entered status, it must be activated before it appears in the Business Workplace Inbox for release. After the release, the business operation has activated status. Activated status is a prerequisite for further processing.

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Disbursement( )

Entering charges individually

- Entering one or more business operations- Each business operation consists of exactly one flow record- Each business operation can be activated, posted, or reversed separately

Business operation charges Unsch. rep.

- Entering one or more business operations- Each business operation consists of exactly one flow record- Each business operation can be activated, posted, or reversed separately;this affects all flows for a business operation

Types of Business Operations

From each initial screen, you can enter one or more business operations. You use the functions Unscheduled repayment and Enter business charges in business operations to enter complex business operations. These complex business operations can also contain derived flows (for example, exchange rate profit, accruals/deferrals records), or incidental costs. The Disbursement function is also a business operation. However, because it is so complex, it is treated as an independent function in the system. It is therefore not covered by the business operation processing logic, and can only be called up from business operations.

The flows created in the business operation are posted using the business operation function. Flows that were entered using the Enter charges individually function can also be posted via the Post individual records function.

(C) SAP AG AC815 8-13

© SAP AG 1999

CoCd Loan

BO status Name First entered Entered on

Entered Special charges Harry Smith DD.MM.YYYYActivated Posting charges Harry Smith DD.MM.YYYY

Flows for business operation

Activate Post Create Detail

FTyp Amount Curr. Payt date Name PT PC3145 100 UNI DD.MM.YY Special charges x 213146 50 UNI DD.MM.YY Extra charges x 213147 10 UNI DD.MM.YY Process. charges x 21

100000060001

Business Operation Charges: Example

All business operations for the contract and this business operation type are listed in the business operation overview.

You determine the flows permitted for each business operation in Customizing. The key 21, Manual debit position, is automatically entered in the posting control field. Whether or not the Payment transaction flag is set is determined from the Customizing settings.

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© SAP AG 1999

1. Maintain number ranges for business operations

2. Assign flow types to condition groups for each application:

- Application 101: Unscheduled repayment- Application 102: Entering charges as business operations- Application 103: Entering charges individually

3. Business operations

- Define company-code specific texts- Default values for flow types- Define parameters (whether an unscheduled repayment should cause a reduction in terms or instalments)

Business Operation: Customizing

Every business operation has its own number in the system.

For each condition group, the following is assigned for each application function:

- The flow types permitted for business operations - Whether these flow types are posted via customer accounts (payment transaction: Yes) or not.

SAP recommends excluding the flow types with calculation type NOOP (no operation); an exception to this would be the flows for the business operation Unscheduled repayment.

You can make the following settings for business operations:

- In each company code, a specific posting text is transferred for a specific application function during posting.

- In a company code, default values for the dunning block and for a payment method are used for a specific product type when you enter a specific flow type.

- In the business operation Unscheduled repayment, the loan term is reduced or the instalments are reduced, or there is no effect on term/instalments in a company code for a specific product type. If the term is reduced, the end of term and, where necessary, the fixed period end, are adjusted automatically; if the instalments are reduced, a new condition item is added automatically with the new instalment, and the next valid from date is determined in accordance with the condition data (frequency, calculation date, and so on) in combination with the calculation date of the unscheduled repayment. If an activated or posted unscheduled repayment is reset, the instalment or term reduction is corrected manually.

(C) SAP AG AC815 8-15

© SAP AG 1999

Business operationEntering charges

individually

Condition-based planned records

(with posting control "manual debit position")

Post individual records

Initial screen: Company code, loan number, due date from ... , to ...

Due on Flow type Amount Currency

x

x10.MM.YY 3145 120 UNI10.MM.YY 3146 300 UNI

30.MM.YY 0110 2,530.50 UNI

Post

Posting Individual Records

Using Post individual records, you can post the flows that were entered (and activated) using the business operation Entering charges individually, as well as condition-based planned records where the posting control "manual debit position" was defined in the condition detail.

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Balance sheet: Acct 2

Balance sheet: Acct 1

Capital position 1

Capital position 2

Capital position n

Capital position x

Capital position 1

Capital position a

Capital position b

Capital position y

Balance sheet Balance sheet transfertransfer

Capital transfer:Capital transfer:GroupingGrouping

Capital transfer:Capital transfer:Contract splitContract split

Transfer Postings: Overview

You can use a balance sheet transfer posting to transfer loan or contract balances between G/L accounts in Financial Accounting. In this case, the transfer posting only affects the Financial Accounting general ledger.

A capital transfer transfers balances between different contracts. This means that the loans subledger is affected as well as the Financial Accounting general ledger. Grouping contracts usually involves transferring capital amounts from several contracts to one target contract. Splitting a contract usually involves transferring the capital amounts from one contract to several contracts.

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Acct assgt ref. X: Balance sheet account 46000

Contractdata:xxx

Automaticdetermination

Change contract

Contractdata:yyy

Acct assgt reference Y: Balance sheet account 46020

Automaticdetermination

Preselection forbalance sheet transfer

Execute balance sheet transfer

4602046000

10,000PO 10,000 PO 10,000

Balance Sheet Transfer

The balance sheet account that the loan balance is posted to is taken from the account assignment reference. This is determined automatically based on the loan data entered, and in accordance with the rules defined for the automatic determination of the account assignment reference in Customizing. If you change data in the contract and this results in a different account assignment reference (in accordance with rules defined in Customizing), 1. For contracts that have not been posted (no disbursement has been posted): - The account assignment reference entry in the contract is changed. 2. For contracts that have been posted: - The account assignment reference entry in the contract is changed. - Preselection for the balance sheet transfer is carried out, irrespective of whether the balance sheet accounts of both account assignment references are different or not. The balance sheet transfer is then triggered separately in an additional activity. The balance of the old balance sheet account on the key date is determined from the actual records and transferred to the new balance sheet account via the interim account.

In the transfer posting report, the flag Delete transfer posting preselection if account assignment reference is not changed has the effect that for contracts that are not affected, the preselection is deleted from the database. This can be the case for example, if loan data has been changed several times such that this does not lead to a change in the account assignment reference (and the previous preselections were not posted).

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© SAP AG 1999

Target loan (or source loan) information

Control parameters Capital amountsTransfer dateFlow typeSource loan inclusiveTarget loan inclusive

Company codeTarget (or source) loan...

Source loan (or target loan)

Transfer amount

Distribute cash receiptsDisc./prem. def. not to revenue

Capital Transfer: Grouping and Splitting Contracts

By selecting either Source loan inclusive, or Target loan inclusive, you define whether the transfer date for the interest calculation is taken from the source loan or the target loan.

The following prerequisites must be fulfilled for capital transfers: - The source loan to be transferred has been disbursed (either partially or completely). - For the source loan, the remaining debt (available capital = remaining capital minus

extraordinary, saved additions and withdrawals) must be at least as high as the amount to be transferred.

- The disbursement obligation of the target loan is greater than or equal to the amount to be transferred.

- All contracts have the same contract currency and the same product type. - There are no postings after the transfer key date that are relevant for the cash flow and not based

on conditions (for example: Posted partial disbursements, posted unscheduled repayments). If such postings exist, you should reverse them manually.

- There are no balance sheet transfers after the key date. Items after the key date:

- Posted debit positions: These are automatically reversed, recalculated, and reposted. - Accrual/deferral postings: Automatically reversed, recalculated, and reposted. - Incoming payments: Automatically reversed and posted as overpayments; depending on the

selection (flag), the overpayment is distributed in proportion to capital; the overpayments can then be cleared automatically.

- Discount: Cleared automatically and distributed in proportion to capital depending on the selection (flag).

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Other posting

Capital transfer posting

Incoming payments

Debit position

Disbursement

Reversing individual operations

Deferred interest

Reset

Accrued/deferred discount

Reversing accruals/deferrals

Processing returneddebit memos

Reversal

If you reverse a document in Loans Management, the document in Financial Accounting is reversed automatically. Reversals (like normal postings) should always be triggered from Loans Management; integration automatically transfers the information relevant for posting to Financial Accounting (FI).

You can reverse accruals that have been posted or reset via the function Reverse accruals/deferrals. If you have posted an accrual/deferral and a reset, you have to reverse the reset before you can reverse the accrual/deferral. If you want to reverse several discount accrual/deferrals, you do this in reverse chronological order.

You can use the "Processing returned debit memos" report to post debits arising as a result of returned debit memos, as long as the returns are not processed via the electronic bank statement. The report posts the amount collected and charges to the customer account and the bank clearing account. The incoming payment is thereby reversed and a new open item is created in the amount of the original debit position. This item automatically receives a payment block. This means that this open item cannot be collected again in FI by the payment program; the open item is then processed further in accounting for Loans (manually or automatically). (Customizing: See II)

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The system displays all items* from the operations selected in the specified period(* reversible items with selection checkbox; items that cannot be reversed can only be displayed)

Selection of records to be reversed

Specify Treasury reversal reason

Post reversal

Reversal categories or groups:Disbursement/debit position/incoming payment/capital transfer/other posting

Selection

Reversal posting: Update run or simulation

Reversing Individual Operations

You can reverse all posted operations (actual records) via the Reverse individual operations function as long as this does not affect the cash flow. If the cash flow is affected, reverse the operations affected first. Examples:

- Reversing an actual record (I1, interest debit position), for which there are further actual records (I2, I3 both interest debit positions). Before you can reverse I1, you have to reverse I3 and I2 in reverse chronological order.

- Reversing an actual record (I, interest debit position), that is followed by later non-condition based planned records (P), for example, a saved disbursement. Before you can reverse I, you have to delete the future planned record P.

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© SAP AG 1999

I. Define Treasury reversal reasons

RRe Long name PmntBlType

01 Processing error 302 Other reasons 3

1 Payment block for disbursement clearing2 Payment block for IP postprocessing3 No payment block

F4

Reversal: General Customizing I

The Treasury-specific reversal reasons are used for information purposes for evaluations in the Loans subledger. They are only relevant for reversing individual operations. Here, you can also define whether for Loans Management, payment blocks should be set for items generated from the reversal (if so, which payment blocks): The payment block for disbursement clearing is the one that is defined as the "Open item payment block" in the company code-specific data for the product type. Setting this payment block has the effect that a credit arising from a reversal is not assigned to the customer, that is, processing is integrated in the payment program; you can only carry out manual postprocessing in Treasury. Example: Debit position 500 UNI. OI clearing via incoming payment 500 UNI. Conclusion: Incorrect amount, only 450 UNI. Procedure: Reverse debit position 500 UNI; the incoming payment is reversed automatically and posted as an overpayment; the payment block is set automatically for this overpayment; new debit position 450 UNI; manual incoming payment postprocessing: Clear the debit position with the 450 UNI overpayment; refund the remaining 50 UNI.

The payment block for incoming payment postprocessing is the one that is defined as the "IP payment block" in the company code-specific data for the product type. This block only applies for the manual posting of returned debit memos. It has the effect that the incoming payment is reversed by the returns posting, and also the new open item that was generated, are not collected again. The payment block prevents the OIs being taken into account in the payment program; postprocessing (automatic or manual) is only possible in Treasury.

No payment block is set for the receivables that were reopened by the reversal of the incoming payments that came from the clearing of advance payments or overpayments.

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II. Define flow types for reversing incoming/outgoing payments

1. Define flow types as for 4596 (A_Reverse incoming payment)or 4597 (A_Reverse outgoing payment)

2. Define account determination(automatic clearing to reversal account or reversal account to automatic clearing)

3. Assign flow types to incoming payment processing type (14 or 15)

Reversal: General Customizing I

As a result of various changes to the reversal function (since Release 4.5), for technical reasons, two flow types are required for reversing incoming payments/outgoing payments (see Customizing example above).

For the postings from the report "Processing returned debit memos", you have to define a flow type such as flow type 4595 (sample Customizing), assign it to processing type "13 Transfer returned debit memo", and then make the settings for the account determination (reversal account to automatic clearing).

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© SAP AG 1999

Assign activity category for reversal transaction grouping

PTyp Text Activity cat. Rev. group 1 Disbursement 2 Debit position3 Incoming payments 4 Capital transfer5 Other posting

F4

...0003 Write-down: Credit0004 Write-down: Debit0009 Disbursement: Credit

F4

30A A_Mortgage given 0003 530A A_Mortgage given 0009 1

Reversal: Customizing for Individual Operations

The assignment of (flow type) activity categories to reversal groups (= reversal categories) defines which documents (corresponding posted flow type) are displayed for which group; the documents displayed that can be reversed are listed with a checkbox, and can be selected for the reversal posting.

Reversal group 5 is used for other postings such as write-offs or waivers. You can also assign activity categories such as accruals/deferrals here, but you cannot reverse the accrual/deferral via the individual operations - it has to be reversed separately. If you make an assignment here, when you select Other posting in the application, the accruals/deferrals documents for example, are also displayed. They are however, only displayed - they cannot be selected. This can be helpful for information purposes. (Exception: Documents from the contract currency changeover are never displayed in these reversal functions).

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© SAP AG 1999

Enter unscheduled or additional operations

Examples:- Unscheduled repayments- Additional charges


Special Cases: Unit Objectives

(C) SAP AG AC815 8-25

Special Cases Exercises

Unit: Special Cases

• Business operations for contracts - unscheduled repayments

The borrower makes an unscheduled loan repayment and you want to enter this correctly in the system.

1 Your borrower has made a payment of 10,000 UNI earlier than scheduled. Create an unscheduled repayment for your company code. (Term will be shortened).

You want to post this amount immediately!

Look at the posting log.

2 Note the changes that arise as a result of the unscheduled repayment:

2-1 Changes in the cash flow for the contract; also check the account statement.

2-2 Changes to the open items posted to the customer account in FI.

3 What effect would an unscheduled repayment with "No effect" have had in comparison to a reduction in the term?

(C) SAP AG AC815 8-26

Unit: Special Cases

• Reversing business operations - unscheduled repayments

You have made a mistake while entering an unscheduled repayment from your borrower. You therefore need to reverse this item and post it correctly.

4 Reverse the unscheduled repayment that has been posted for your contract:

4-1 Display the corresponding document.

Enter the reason for the reversal.

Post the reversal immediately.

4-2 Once the reversal posting has been made, check the account statement.

5 Look at the effects in the cash flow and adjust the term again. How is the cash flow affected by the reversal of the unscheduled repayment?

(C) SAP AG AC815 8-27

Special cases Solutions

Unit: Special Cases Topic: Business operations for contracts - unscheduled repayments

1 Enter an unscheduled repayment:

→ Accounting

→ Treasury

→ Loans

→ Position Management

→ Business operations for contracts

→ Unscheduled repayment

Enter the company code and loan number, and select Change.

Select Create unscheduled repayment. Select the effect Term will be shortened, and enter a name. Select flow type 0135 for debit position repayments, and maintain the date fields.

Information about the reduction in maturity appears.

Confirm the warning Posting is in the future with Enter.

Post the unscheduled repayment.

Confirm the warning Posting is in the future with Enter.

(C) SAP AG AC815 8-28

2-1 Check the cash flow and the account statement:

→ Accounting

→ Treasury

→ Loans


→ Mortgage Loan


Select Cash flow.

You can go to the account statement from the basic data via Extras → Account statement.

If the business operation is not displayed: Select Display options to extend the display period via the field Posting date to.

2-2 Analyze the line items in the customer account:

→ Accounting

→ Treasury

→ Loans

→ Accounting

→ Accounting evaluations

→ Customer account

→ Display line items

3 An unscheduled repayment with "No effect" would have adjusted the future interest payments and repayments to reflect the unscheduled repayment.

(C) SAP AG AC815 8-29

Unit: Special Cases Topic: Reversing business operations - unscheduled repayments

4 Reverse the unscheduled repayment as follows:

→ Accounting

→ Treasury

→ Loans

→ Accounting

→ Reversal

→ Reverse individual activity

Enter the company code and loan number.

- Check the posting period and then select Debit position. - Select the document for the unscheduled repayment and then

Post the reversal. - Enter the reversal reason 01 Processing error and then carry out the posting. - Check the Account statement.

5 Check the cash flow/adjust the term:

→ Accounting

→ Treasury

→ Loans


→ Mortgage Loan

→ Change contract

Select Cash flow.

The unscheduled repayment is no longer visible in the cash flow.

Adjust the term via Calculate term.


© SAP AG 1999

Changing contracts

Rollover

Process management

Customizing:- Rollover- Process management

Contents

Rollover


© SAP AG 1999

Process rollover contracts when the condition terms have expired - using individual processing and mass processing

Use process management for random selection of contracts as well as for mass correspondence


Rollover: Unit Objectives


© SAP AG 1999




Disbursement

Course overview


Loan contract

Payments due

Closing operations

Rollover



© SAP AG 1999

The fixed period for conditions has expired for a loan given. You want to discuss future conditions with the customer. You can present various different condition offers.

You also want to write to all customers whose loan has not been changed over to the euro.

Rollover: Business Scenario


© SAP AG 1999


- Accrual/deferral- Valuation- Summarization- Information system- Special cases- Rollover

InterestedInterested ApplAppl. Offer Contract . Offer Contract DisburseDisburse-- OtherOther Rolloverpartyparty mentment activitiesactivities




© SAP AG 1999

Time

DD.MM.YYYY DD.MM.YY+3

Contractconclusion

End of thefirst fixedcondition period

DD.MM.YY+15

End of loanperiod

Contract

Conditions:

Fixed from DD.MM.YYYYFixed to DD.MM.YY+3

Offer/contract

Conditions:

Fixed from DD.MM.YY+3Fixed to DD.MM.YY+7

Rollover

Change contractor

Loans: Rollover

The fixed period agreed for loan conditions may be shorter than the contract period. At the end of this period, you determine a new period and new conditions with the borrower. You can process a contract individually (by changing a contract or using individual rollover), or you can use the special rollover function.

If you create offers or contracts for loans that are in the rollover process, these loans are blocked for other processing that is relevant to capital; you can no longer change conditions via the functions Change contract, Disbursement, Enter business operation, Waive contract, Capital transfer, or Reversal. If a loan is in a rollover file, and offers/contracts have not been created yet, you can use the above processing functions as long as this is permitted by the settings in Customizing.


© SAP AG 1999

Loan disbursement posted

Change contract

User authorization

Loans: Changing Contracts

If disbursements have been posted for a loan, only users with the appropriate authorization can change the contract and conditions. (Exception: Condition data that is not relevant for finance, such as the payer and posting data in the condition items, and request, contract, and termination data in the condition header data can be changed without special authorization).

If you change conditions via the Change contract function, no condition history is available - except for change documents. Only the current condition header is displayed. A condition history is available however in the rollover function.


© SAP AG 1999

Rollover: Rollover:

Adjustment ofAdjustment ofloan conditionsloan conditions

At the end of theAt the end of thecurrentcurrentfixed periodfixed period

At any At any timetime

Rollover: General

You can use the rollover function to roll over a large number of contracts whose conditions have expired automatically.

The rollover functions enable you to Adjust the loan conditions for several contracts at the end of the expired fixed period (including the organization and monitoring of the business operations occurring in this organization)

Adjust the conditions of an individual loan at any time You can make scheduled adjustments (at the end of the fixed interest period) using the automatic rollover functions; for unscheduled adjustments (at any time), you can use the individual rollover function.

When you carry out a rollover, the system generates a new condition header and new entries for the fields to be changed in the condition items. You can then track the original values using the condition history. The other fields (contract master data) remain unaffected by the rollover and continue to appear in the condition items. At the same time, the system makes some automatic adjustments, for example, deleting conditions that have expired.


© SAP AG 1999

General file, main file, file

Register

Functions

Table

Variants

Modifications

Rollover: Central Terms

You select the loans to be processed in the rollover using the appropriate selection criteria. You can group the loans selected in different files for processing. (Example: File 1 Mortgage loans, File 2 General loans). A file is subdivided into registers. (Example: File 1. "Not processed" register, "In progress" register, "Completed" register). Each register contains various functions. (Example: "Not processed" register functions: "Create offer", "Print offer"; "In progress" register functions: "Print offer").

The tables are special condition tables for the rollover function. (Example: Table 1 for mortgage loans, table 2 for general loans). You can define an unlimited number of variants for each table, that is, different "sets" of conditions with different interest or repayment clearing terms, and so on. For each table, you can define modifications that can be used to change specific loan conditions (indicated as permitted in Customizing).

In the rollover function, the file structure is relevant for mass processing as well as for individual rollover; tables however, are only required for mass processing.

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How is the rollover carried out?How is the rollover carried out?

Result of rollover?Result of rollover?Offer(s) Contract

Which contracts are rolled over?Which contracts are rolled over?

FilesFiles

Main filesMain files

General fileGeneral file

or inor in

or inor inContracts Contracts in specificin specific

Variant 1:Variant 1:

Variant 2:Variant 2:

Variant nVariant n

(Modification(s))(Modification(s))

(Modification(s))(Modification(s))TableTable

Rollover - Overview

A rollover always relates to a certain number of contracts which correspond to your selection criteria. You roll over the contracts for a file, a main file or a general file.

You define the rollover characteristics in a table. A table consists of variants and modifications. As a result of the first rollover step, the system generates offers for you to send to your borrowers. The offer accepted by the borrower is then used to create the contract via the individual rollover function.

You can also omit the offer step and use the rollover function to create contracts directly. The offers/contracts consist of the condition header and the related condition items.

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Loan: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16


Main fileMain file Main fileMain file

File File File File File

Rollover: File Structure

The above hierarchy allows you to organize your work more effectively. The general file contains all the main files, and hence all the files in the system. The system generates this file automatically as a 'virtual' file. There is one general file for each company code - this provides an overview of all the loans in a rollover process.

A main file is subdivided into a series of files. The rollover file is a primary parameter for organizing rollover activities. Rollover files enable you to group loans and process them together. For example, you could create a file for each rollover clerk.

You can control access to files and main files by entering an authorization group. You can control access to a general file via the display and change transactions linked to the user profile. When a file is filled, the system checks whether the display authorization required exists for each loan selected. Loans with excluded authorization groups are logged and not entered in the file.

A loan can only exist in one register/file/main file within the rollover function.

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Company codeMain fileTable YYYYMMVersion number

0001Rollover05YY05

Reference

Company codeMain fileVersion YYYYMMVersion number

Rollover: Creating Main Files

If you create a main file, the version number that you specify is used to distinguish between various alternatives; the version number is assigned internally (sequential numbering for each explicit version, starting with 001). You can change a main file as long as it has not been filled.

SAP recommends that you only create one version of the main file per month and use the corresponding month and year for the name.

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Insert file Edit selection

No.

Loan distribution

Clerk pref.

Remainder distrib.

Equal Sequentl Assigned

File listFile list

File Clerk Name AGrpSC

PSC

Company codeMain file Version YYYYMM

0001Rollover05 YY05 001

EU1 Miller Miller/Little

Rollover: Creating Files

Using the main selection criteria in the main file, you define the loans to be selected (selection is usually carried out using the End of fixed period field in the condition header).

In the file list, you create the files required for automatic processing. Using the selection criteria (SC), you can define which loans from the main file are to be selected in each of the files. A range of functions are available for assigning loans to the individual files:

- Specification of the name of the clerk in the file: Only for information purposes.

- Name of clerk specified in the file and the flag Clerk pref. is set: All loans that fulfil the selection criteria of the file (priority 3), or where the clerk specified is entered in the loan* (priority 2), or where both these conditions are fulfilled (priority 1), are assigned to this file.

- Remainder distrib.: The loans from the main file that could not be assigned to a file on the basis of the selection criteria can be distributed to the files as follows: - Sequential: The unassigned loans are distributed to the files in sequential order. - Equal: The unassigned loans are distributed such that the number of loans in each of the files is the same (as far as possible). - Assigned: The unassigned loans are entered in specific files.

* The clerks for the rollover must be defined as business partners in the corresponding role (and entered in the loan).

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Print parameters - Log

Log level

Execution parametersOnline executionExecute in batch imm.

Schedule batch

Rollover main fileCompany codeMain fileVersion YYYYMMVersion number

x

x Test run

Refer. date

9 Print/spool param. log

0001Rollover05YY05001

05/12/YY

Rollover: Filling Files

You trigger the Fill Main File function for each main file. The reference date must be a date between the Fixed from and Fixed until dates for the loans to be selected.

When the file is filled, all capital fields are calculated at the end of the fixed interest period. If you subsequently require the current capital values for the loans in the rollover process, use the report "Update files". The capital fields of the loans selected are updated at the date of the calculation and if necessary, the contracts with remaining capital of zero are reassigned to specific registers. The separate update is required since the capital fields are not updated automatically for performance and architecture reasons.

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Create TableCreate Table

Company codeTableTable YYYYMM

0001Rollover05YY05

Reference

Company codeTableVersion YYYYMMVersion number

Rollover: Creating Tables I

You set up tables for creating rollover offers. These contain conditions for the new fixed period.

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Rollover: Creating Tables II

Create TableCreate Table

Company codeTableName

Effective fromReserv. period

Effective toEnd cond. res.

Auth. group

Status

Variants Modifications

0001Roll_05 YY05 001Rollover May

05/01/YY 06/30/YY

6 weeks 06/12/YY

The date on which you carry out the rollover in the system must be between the Effective from and Effective to dates.

In the Reserv. period field, you specify how much time the customer has to reply. The reservation period is calculated from the date when the offer is created in the system. If the reservation period has expired, all contracts that have not been processed are automatically transferred to a register defined specifically for this purpose. If you make an entry in the End cond. res. field, all contracts not processed on this date are also transferred. If you make entries in both of these fields, the shorter period is applicable.

A table can have different statuses: Undefined (is currently being created), To be released, Released, Deactivated. If you specify an authorization group in the rollover table, only employees with the corresponding authorization group may process the table.

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Create variantsCreate variants

TableNameEffective fromReserv. period

Status Released


Condition variants

Rnk Fxd int. DRate Nom. int. + Toler. - Toler.

Roll_05 YY05001

Rollover May05/01/YY 05/01/YY

6 W 06/12/YY

001 3 Y 100.00 8.5000 2 M 2 M

Edit SC

Selection criteriaSelection criteria--> Loans that fulfill > Loans that fulfill these these criteria are rolled criteria are rolled over over using variant using variant 001001

Rollover: Variants

You can define an unlimited number of variants ("sets" of conditions) for each table. Via the selection criteria, you can define which loans should be rolled over using the conditions of each of the variants.

To define new conditions for all of the loans selected, you can use tolerance limits to extend the validity: One variant applies for all loans with a remaining term longer than or equal to "Fixed interest period minus the negative tolerance". If the remaining term is shorter than or equal to the "Fixed interest period plus the positive tolerance", the condition applies for the whole of the remaining term (the fixed interest period is changed to correspond to the remaining term). If the remaining term is longer than this limit, the new condition applies for the fixed interest period defined.

The sequence of the variants is not relevant for creating offers since you can create as many offers as there are valid variants. If contracts are created immediately, the first valid variant in the sequence is used.

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Rnk Fxd int. DRate Nom. int. + Toler. - Toler.

+ -001 3 Y 100.0000 8.5000

2 M 2 M

Condition variants

All loans with remaining term Offer conditions fixed for

a) >= 2 years and 10 months The total remaining termand (2 years and 10 or 11 months; 3 years;

<= 3 years and 2 months 3 years and 1 or 2 months)

b) > 3 years and 2 months 3 years

Variants: Tolerance Limits - Examples

If you do not specify tolerance limits, only those loans with a remaining term of exactly three years would receive the new conditions for exactly three years. All other loans (remaining term longer or shorter than 3 years) are not considered.

You can use the tolerance limits for example, to ensure that loans with a remaining term slightly longer than the standard fixed interest period for the variant are also considered. If this were not the case, the contracts that, for example, have a remaining term of 3 years and 1 month would be defined with new conditions for 3 years. In 3 years, you would have to agree new conditions for the remaining term of 1 month.

Additional example: Fixed interest period + Tolerance - Tolerance Variant 1 2 years 6 months 2 years Variant 2 5 years 1 month 2.5 years Variant 3 10 years - 4 years How many offers does the borrower receive as alternatives for the new condition period? Answer: 3

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Rollover: Modification(s)

Create Modification(s)Create Modification(s)

TableNameEffective fromReservation period

Status Released


Condition modificationsRnk SC Short name Ref. Modified val. MOpt Sign Var.no.

Nom. percent. 0.5 X 002

Roll_05 YY05001Rollover May 05/01/YY 05/01/YY

6 W 06/12/YY

MNx

Edit SC

You can use modifications to configure the new conditions as well as to change additional fields (in addition to the fields offered in the variants).

Example: The nominal interest specification for variant 002 is 0; this means that the values are transferred from the old contract. If the modification has entries as in the above example, the entry "+0.5" means that the interest value transferred is increased by 0.5 percent.

Via the selection criteria, you define the loans for which the modification data is to be used. By specifying a variant number, you can define that the modification should only apply for those loans rolled over with the corresponding variant.

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FileFile

Main fileMain file


Individual rolloverIndividual rollover

Edit

Display

Edit

Display

EditDisplay

Edit

Rollover: Processing Options

You can roll over loans individually using the Individual rollover function. To use the mass processing function, select all loans to be edited from a specific file, main file, or general file. You define the permitted ways of using the mass processing function in Customizing.

You can use mass processing to create offers or contracts. If the customer decides to accept one of several offers, you transfer the offer data to a contract using individual rollover.

You can use individual rollover to create offers or contracts, or to transfer offer data to a contract.

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File information

No. of loans

Company codeMain file Version YYYYMM No.

Totals

0001Rollover05 YY05 001

369,827.72 322,527.75

Register overview

Rnk Short name No. of loans Contract capital Planned capital

5

UB Not processed 5 269,827.72 222,527.75

: : : : :

Rollover: Register Overview I

In Customizing, you define which registers the system should create for each file. Registers are subdivisions of the file, and reflect the distribution of the individual loans by processing status during the rollover transaction.

From the register selected, you can display the overview of the loans in this register. You can then process the content of this register.

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File/Register information

Main file

Register

No. of loans

Loans overview

N

P R

Contract no.

100001237

101085536

x

x

N

Online individual rolloverDisplay contractRollover - Create offersRollover - Print offersRollover - Remove offers...

Function overviewSelect edit function

11NNN

Rollover05UB

5

Rollover: Selecting the Editing Functions

To process the loans in this register, select the loan and choose Functions. The Select edit function dialog box appears. You can use functions such as Create offers, or Print offers. You define the editing function available in each register in Customizing.

All the loans you select are edited using the function selected. The reference date is the processing date; in order for a table to be used for configuring conditions, the reference date must be between the Effective from and Effective to dates of the relevant table.

The rollover generates new condition headers of the following type: Offer: Document that has not been signed yet. It contains the new conditions to be used for the next fixed interest period for a loan rollover. The borrower can accept or reject this offer.

Contract offer: Offer signed by the lender. If the customer accepts the offer, when he signs the document, a legally binding contract arises.

Contract: Legally binding contract signed by both parties. Rollover contract: Contract document generated by the rollover and signed by the lender before being sent to the borrower for signature.

Fixed contract: Contract that is legally binding when created, that is, neither the signature nor the agreement of the borrower is required. The system currently only processes "Offers" (offer; contract offer) and "Contracts" (contract; rollover contract; fixed contract).

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Print parameters - log

Execution parameters

Rollover table

Log level Print/spool param. log

Company codeMain fileTable YYYYMMTable number

Online executionExecute in batch imm.

Schedule batchTest run

Refer. date

Rollover date

End of fixed interest period

05/31/YY

9

0001Roll_05YY05001

On key date

Rollover: Creating Contract Offers

After you have selected the function, a screen appears where you can define the execution parameters.

Here you define which rollover table is used. You also define whether the rollover offer should be created online or as a batch job.

You have two options for the rollover date (new Effective from date for the new conditions). You can choose the end of the fixed interest period - this can vary for each contract. Alternatively, you can assign a fixed key date from which the new conditions apply for all loans affected by this rollover.

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File information

No. of loans

Company codeMain file

Totals

0001Rollover05

369,827.72 322,527.75

Register overview

Rnk Short name No. of loans Contract capital Planned capital

5

UB Unprocessed 4 69,827.72 222,527.75

: : : : :

AE Roll. offer created 1 100,000.00 100,000.00

Rollover: Register Overview II

In Customizing, you can define whether and to which register contracts that have been processed should be transferred, or whether a loan should be removed from the rollover once it has been processed.

Example: An offer is created for a loan that was previously in the register "UB" - unprocessed. Based on the settings in Customizing, the loan is automatically transferred to the register "AE" - offer.

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1. Create and fill file structure.2. Create tables

- Variants- Modifications

3. Edit files- Create and print offers- Create and print rollover contracts- Remove loans from the file structure

Rollover: Process Overview

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EvaluationEvaluationRollover statistics

File contents

Rollover: Evaluations

The rollover statistics provide information about rollovers in a specific period. You can start this evaluation separately from the rollover file structure, that is, all loans are considered irrespective of whether they are in a rollover file or not. The report evaluates one company code at a time. The decisive selection criterion is the interval for the end of the fixed interest period. As a default setting, all capital amounts are calculated at the end of each fixed interest period. Alternatively, you can enter a calculation date here if required. The report issues total statistics for each product type/loan type.

If you evaluate the file contents, the system issues the following information for all company codes for the loans selected (general file, main file, file, register): - Capital fields and number per register - If you selected an individual list according to loan number or file structure: List of all loans in the file structure selected.

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Activity type

LLogical fields

Register

Report functions

Transaction functions

Functions/register

Variant-relevant condition types

Loans_

_

_ Functions

Rollover

Customizing: Rollover

You make the settings required for the rollover functions in the IMG under Functions -> Rollover.

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Loans_

_

_ Functions

Rollover_ Activity type

AT

P

Name

Rollover

Customizing: Define Activity Type

Use activity type "P" for rollover.

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Detail101020

Selection field

Properties

Set/get-progr.

Program

SAPFF67P

"Double-click"

FldNo.

101010

101020

:

Name

Product category

Product type

:

Field number

Define logical fields

Modification

Customizing: Define Logical Fields

During the rollover, at various points, selection criteria are used to select the relevant loans. The fields available as selection criteria are defined in Customizing. You can edit the contents of logical fields by means of a read and write routine (Set & Get Routine). As logical fields, you can define all of the fields from the R/3 standard tables (for example, partner data, loan basic data, or loan conditions), or from external files.

They are used as selection criteria for: - Choosing the loans to be rolled over on a certain date (main file) - Distributing the loans to the files - Assigning new conditions (variants)

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Register

Name Rollover offers created

RegisterTypTarget reg. ID Removal ID

Properties

"Double-click"

RG

AD

AE

:

Name

Rollover offers printed

Rollover offers created

:

AE

Register definition

Dunning reg. Term end reg.

Changes permitted

Dunning tol. Term end tol.

Customizing: Define Register

In Customizing, you define the registers for each file. You enter details for each register, for example, whether a register can be a target register, that is, whether the loan can be automatically transferred to this register after the editing functions have been executed. If you set the flag Removal ID, you can remove a contract from the register without carrying out any processing. If you specify a register as a dunning register, all contracts in this register where the reservation period has expired are entered there. You can specify a lead time using the dunning tolerance. If you specify a register as a term end register, all contracts in this register where the fixed interest period has expired are entered there. You can specify a lead time using the term end tolerance. The Changes permitted flag controls whether capital-relevant changes are permitted for loans that are in a rollover folder in this register (and for which no offer/contract has been created).

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Function code

Function call RFVDPF01

Detail screen

PAES

FCd

PADR

PAES

:

Name

Print rollover offers

Create rollover offers

:

Exec. param. ID

Refer. date ID B

Define report functions

AETrgtRegister

Customizing: Editing Functions I

Loans are processed using functions. The system differentiates between report and transaction functions.

In the case of report functions, the system uses a report program to process a task, making it easier for you to single out an activity. In the case of transaction functions, you process tasks as part of an interactive transaction.

In the application, you can carry out report functions in various ways, and the system generates a report processing log.

There is a detail screen behind each entry in the Customizing table. You can set default entries here, for example, for the execution parameters (online, batch), or print parameters (log).

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Function code

Function call

Init. program

FNP0

"Double-click"

MPAE

FCd

MPAE

Name

Dialog individual rollover

SAPFF67F INIT.FNP0Init. form

Define transaction functions

Customizing: Editing Functions II

Transaction functions start a transaction. The standard system contains three transactions: Individual rollover, Display contract, Loan overview.

In the detail screen, you define the default values, in particular for the function call, the initialization form routine ('Init.form'), and the program for this routine ('Init.program').

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SR

AD

AD

AD

AD

.

.

.

FCd

DAEF

MPAE

PADR

PAED

.

.

.

Fil. MnF GnF Df DR

26

1

4

3

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

Activity type PAssign Functions to Register

Customizing: Assign Functions to Register

In order to guarantee controlled loan processing, you have to assign the report and transaction functions (FCd) that you define to the individual registers. This means that in the application, you can only access some of the functions for each processing status.

Using the columns File, Main file, General file, you define whether the corresponding editing function is permitted if you access the function via Edit file/main file/general file.

You define one editing function for each register - this is then the default in the application selection screen.

The last column contains the sequence for displaying the editing functions in the selection screen.

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FCat Flow category CTyp

TTAN Annuity repayment 261TZ Nominal interest 201TV Repayment offset 204

Activity type P Rollover

Customizing: Variant-Relevant Condition Types

Assign the condition types to be filled by data from the table to activity type "P".

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Rollover correspondence

Define documents

Define correspondence activities

Assign function/program to correspondenceactivities

Assign documents to correspondence activities and roles

Customizing: Rollover - Word Processing

The Customizing settings for correspondence are used for rollover correspondence. You have to assign the functions/programs that you have defined under rollover/report functions to the correspondence activities.

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Process management

FileFile FileFile FileFile FileFile

Configure/fill filesConfigure/fill files

Main fileMain file Main fileMain file


Process Management: Overview

The Process management function is based on the same functions as rollover. It also builds on the file concept and is used for example, for mass output of various correspondence, such as the interest certificate.

A loan in the rollover file can also be assigned to one file of another activity type at the same time (for example, a process management file).

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Settings for process management:

Process management

Correspondence

- Text processing

- External flow types

Process Management: Customizing

Under Functions -> Process management in the IMG, you can access the same settings as for rollover. You maintain these in the same way. You define an activity type here, for example, K for correspondence.

You make the settings for correspondence here for the settings for text processing and external flow types required for process management.

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Customizing for number ranges:

For rollover: For process management:

Condition number

Rollover number

Condition number

Rollover/Process Management: Number Ranges

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Process rollover contracts when the condition terms have expired - using individual processing and mass processing

Use process management for random selection of contracts as well as for mass correspondence


Rollover: Unit Summary

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Prolongation Exercises

Unit: Rollover

• Rollover of a loan contract

As a result of changes in the market, the borrower asks you to revise the loan conditions during the fixed interest period. The borrower wants to view new offers.

1 Carry out an unscheduled loan adjustment.

First of all, create a main file in your company code:

• Main file: XXTRXX

• Version YYYYMM

1-1 Then create a file within the main file:

• File: TRXX (XX = your group ID)

• Assign a rollover clerk to the file (use the matchcode search facility).

1-2 Edit the following:

• Main selection criteria: - Product type: 30A

• Selection criteria: - Loan type: 005 (1A loan)

Save your entries.

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2 Carry out an individual rollover for your loan. You want to create rollover offers to send to your borrower.

2-1 Assign your loan to the main file 'XXTRXX' and the file 'TRXX' that you have just created for your company code.

2-2 Create various rollover offers based on the original contract.

Save your entries.

3 You now want to print the offers to be sent to the borrower. To do this, edit the file you created earlier. Which register contains the loan?

Look at the print preview for the offers. (-> next editing function: Print rollover offers)

You want to print the offers online. Set the print parameters for displaying the print preview. Display the offers.

4 The borrower has decided to accept one of the offers. Convert this offer into a contract.

Save the contract.

Which register of the file contains the loan now?

After the loan has been rolled over, remove it from the file.

5 Return to the contract and look at the condition history.

Which function in the condition history allows you to display the rollover offers you have created?

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Unit: Rollover

• Creating tables

You want to send rollover offers that reflect current market conditions to borrowers whose loans are about to reach the end of the fixed interest period.

6 Create a rollover table for the contracts that expire at the year end.

Also create two variants for a fixed period for the table.

7 Assign contracts with product type 30A that expire at the year end to variant 1, and the contracts with the following characteristics that expire at the year end to variant 2:

• Product type 33A

• Nominal interest rate > 4%

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Rollover Solutions

Unit: Rollover Topic: Rollover

1 Prepare the rollover:

Create a main file:

→ Accounting

→ Treasury

→ Loans

→ Portfolio

→ Rollover

→ Periodic Processing

→ File Structure

→ Create


Company code TRXX

Name of main file XXTRXX

Version YYYYMM

Confirm your entries with ENTER.

1-1 Create a new file via Insert file.


File name TRXX

Clerk 9000000002

1-2 Set the selection criteria.

Via Edit main selection criteria, you can carry out a preselection from all files at main file level:


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Product type 30A

Confirm your entries.

Select your file and then choose Edit selection.


Loan type 005

Confirm your entries.

Save your entries.

2 Carry out the rollover.

2-1 Assign the loan to the file:

→ Loans

→ Portfolio

→ Rollover

→ Individual Rollover


Company code TRxx

Contract


2-2 Create rollover offers:

Select Create rollover offer and enter a file.

Enter the following:

• Fixed period

• Offer conditions

• Interest and repayment conditions

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Select Condition overview to go to the initial screen. You can then repeat the transaction to create another offer.

Select Create rollover offer again, then double-click the new item to go to the editing screen.

Save your entries.

3 Print the rollover offers: → Accounting

→ Treasury

→ Loans

→ Portfolio

→ Rollover

→ File Processing

→ File

→ Edit


Company code TRxx

Main file XXTRXX

Version YYYYMM

Version number 001

File TRXX


The loan is in register AE (rollover offers created).

Select register AE from the overview and then select Register content. Select the loan and choose Functions. From the function overview that appears, select Print rollover offers. Select Process online and then execute the function.

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Carry out an update run and select Output immediately.

On the following screen, select Print preview, and then choose the letter you want to display.

Do not forget to print the document after viewing the print preview.

4 To convert a rollover offer into a contract, proceed as follows:

→ Accounting

→ Treasury

→ Loans

→ Portfolio

→ Rollover

→ File Processing

→ File

→ Edit

The loan is in register AD (rollover offers printed).

Select register AD from the overview and then select Register content. Select the loan and choose Functions. From the function overview that appears, select Dialog individual rollover. Choose the offer that has been accepted and then select Create contract. Save the contract.

The loan is now in register VE (contract offers created).

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To remove the loan from the Contract offers created register, select Register contents, choose the loan, then remove the loan via

→ Edit

→ Remove loan

5 Check the condition history:

→ Accounting

→ Treasury

→ Loans

→ Portfolio

→ Contract

→ Display


Company code TRxx

Contract number

Screen: Conditions

Select Condition history.

Via Switch detail mode, you can also display the rollover offers.

(C) SAP AG AC815 9-48

Unit: Rollover Topic: Creating tables

6 Creating tables

→ Accounting

→ Treasury

→ Loans

→ Portfolio

→ Rollover

→ Table

→ Create


Company code TRxx

Table TRXX

Table YYYYMM



Name Freely definable

Validity period Freely definable

Reservation period Freely definable

Maintain variants 1 and 2.

7 Select variant 1 and then choose Edit SC.


Product type 30A

End of fixed period Year end

Confirm your settings.

Repeat the transaction for variant 2 and then Save the table.

(C) SAP AG AC815 10-1

© SAP AG 1999

Master data: - Business partner- Credit standing check- Objects- Collateral value calculation- Securities- Filed documents- New business table

Application/offer/decision-making/contract

Release

Customizing

Contents

Complete Process Including Master Data

(C) SAP AG AC815 10-2

© SAP AG 1999

Use the options for managing contract acquisition data in the system (application, offer, decision-making)

Use the options for managing additional loan data


Complete Process Including Master Data: Unit Objectives

(C) SAP AG AC815 10-3

© SAP AG 1999


Special cases


Disbursement

Course overview


Loan contract

Payments due

Closing operations

Rollover

Complete process including master data


(C) SAP AG AC815 10-4

© SAP AG 1999

As well as managing existing contracts in the system, you also want to reflect the contract acquisition process. You want to include all available relevant data, such as credit check data, collateral value calculation, and so on.

Complete Process Including Master Data: Business Scenario

(C) SAP AG AC815 10-5

© SAP AG 1999


Master dataMaster dataBusiness partnerCredit standing checkNew business tablesFiled documentsCollateralObject master dataCollateral values

Transaction mgmtTransaction mgmtInterested partiesApplicationDecision-makingOfferContract

RolloverProcess managementTransfer postings. . .

PortfolioPortfolio

Evaluations in the information system

Overview of the Process for New Business -Mortgage Loans

In the Loans area, you can mange the various stages in the loan process and link your loans to different master data.

There are also numerous position management functions for loans that have been entered in the system.

The transactions in Loans Management are integrated with the R/3 Financial Accounting component and with TR-Cash Management.

A range of programs allow you to carry out evaluations according to different criteria.

(C) SAP AG AC815 10-6

© SAP AG 1999

Evaluations in the information system


ContractContractofferofferInterest.partyInterest.party ApplicationApplication ContractContract

• Mortgages • Mortgages• General loans



Borrower's note loans: Reservation / Order ContractBorrower's note loans: Reservation / Order ContractD

ecis

ion-

mak

ing

Possible Procedures in Loans Management

There are separate menus for each type of loan. These contain the possible steps in the loan process for the type of loan in question.

The process in the mortgage loan area is the most complex. All forms of loan are integrated with R/3 FI and TR-CM and can be evaluated according to various criteria.

(C) SAP AG AC815 10-7

© SAP AG 1999


- Accrual/deferral- Valuation- Summarization- Information system- Special cases- Rollover- Master data

Interested Appl. Offer Contract DisburseDisburse-- Other Other RolloverRolloverparty mentment activitiesactivities

Transaction management Portfolio/accounting


(C) SAP AG AC815 10-8

© SAP AG 1999

Partner

Credit standingcalculation

Collateralvalue

Objects

Collateral

New businesstable

Fileddocuments

Loans

Master Data - Overview

In the R/3 System, all real estate collateral in the form of land and buildings is included under Objects. Collateral is all securities except for land and buildings (objects).

(C) SAP AG AC815 10-9

© SAP AG 1999

Cred. stand.calculation

FileFileCust. in FICust. in FI

When loanis created

Loans Objectwith basic data Collateral valueCollateral value

Land register:

Part 1: Real estate register Part 2: Incidental rights Part 3: 3 sections

Sec. I) Display ownersSec. II) Charges

Sec. III) Encumbrances

Collateral:• Life insurance• Stocks •• Savings accountSavings account

:

Borrower PartnerBorrower Partner

= Prerequisite for the creationof Encumbrances

Data is also automatically transferred to the land register, Part 3/sect.III

Master Data: Context

(C) SAP AG AC815 10-10

© SAP AG 1999

Partner


Collateralvalue

Objects

Collateral

New businesstable

Fileddocuments

Loans

Master Data - Partner

(C) SAP AG AC815 10-11

© SAP AG 1999



0001/intern/33A

Business partner selectionRole category main borrower

E N T E R

Loans - Initial Screen

Specify your business partner as the borrower. If the business partner does not already exist in the system, you have to create it.

(C) SAP AG AC815 10-12

© SAP AG 1999

PartnerPartner Loans Management

Basic functions TR-TM

Create/Change/DisplayCreate/Change/Display

Create/Change/DisplayCreate/Change/Displayin rolesin roles

Create/Change/DisplayCreate/Change/Displayin roles compared to loansin roles compared to loans

Business Partner

In business partner management, you can create, change and display general business partner data. You can enter a loan partner in the system in three ways:

1. Create business partner by choosing Basic functions -> Business partner in the application menu: In this case, you create the partner using a grouping, without assigning an application area. You can then assign loan-specific roles and data to the partner later on.

2. Within the Loans Management component - Business partner -> Create in role: In this case, you first specify the application area (such as mortgage loan, borrower's note loan, policy loan, or general loan) and then enter the partner role (for example, '0100' Main borrower) on the next screen. If role types have been defined for a role category, these are displayed; if not, the role category is displayed.

3. Within the Loans Management component - Create business partner in role when creating a loan: You select the role here (role type or category). If an FI customer account is required for loans in that particular status, the system creates an FI customer automatically on the basis of the default values defined in Customizing. If no FI customer is required for this loan status, the system only creates an FI customer using the default values if you call up a customer view.

(C) SAP AG AC815 10-13

© SAP AG 1999


Partner

Collateralvalue

Objects

Collateral

New businesstable

Fileddocuments

Loans

Master Data - Credit Standing Calculation

(C) SAP AG AC815 10-14

© SAP AG 1999

Master data: Credit stand. calculation

- Create/Change/Display

Business partner reference(with role category "Credit standing calculation")

Credit Standing Calculation - Business Partner

You can create, change, and display a credit standing calculation for each business partner that has the corresponding role category. You can no longer change calculations that you display. If the credit standing data changes, you have to create a new calculation using the new Valid from date.

An unlimited number of credit standing calculations can exist for each business partner. You can only calculate a new credit standing calculation however once the last calculation has been fixed.

(C) SAP AG AC815 10-15

© SAP AG 1999

Basic data

Calculation for Brown/ 1 Main Street / Washington DC 20433Cred. stndg inst.0001 SchufaIndustry Employm. status Self-employed04

Form type 0001 HCons. no.Currency

Credit standing calculationNo. of personsNo. earners

41

Calcul. up toFreeze date

H001UNI

04/27/YY

Monthly income AmountNet salary of applicant 10,000.00 10,000.00

Incomings and outgoings

Creating Credit Standing Calculations

First of all, you select the business partner you want to carry out the credit standing check for. You then choose which type of calculation form you want to use. You enter the basic data, such as the number of persons and earners. You then add the details relating to the borrower's income and financial commitments. The system uses the data you have entered to calculate whether the total incomings minus the total outgoings result in a surplus or a deficit.

If you have entered an authorization group in the data for the role category Credit standing check in the business partner, only those users that have the appropriate authorization can process a credit standing calculation for this business partner.

(C) SAP AG AC815 10-16

© SAP AG 1999

Overview of formsForm CT V Form items description

Overview of item types

Overview of item typesItT T CT ItT Form items description1 Monthly income2 1 1 29 Net salary of applicant6 1 1 29 Child benefit

0001 91 1 Credit standing calculation

Functions -> Credit Standing and Collateral Value Determination-> Define Calculation Forms

Customizing: Credit Standing Calculation

The credit standing calculation is based on a calculation form. In Customizing, you can define various different form types.

Credit standing checks and short versions of the collateral value calculation are defined based on the calculation forms. They each have different calculation types. For the credit standing check, you can choose between two calculation variants (V). One variant calculation includes subtotals (income, expenditure, standard of living), the other does not.

The Item type (ItT) indicates the line in which the item should appear. T is used for grouping items to calculate totals (see F1 Help). The Calculation type (CT) specifies how the item is to be included in the calculation (percentage calculation, quantities, and so on). The second ItT column specifies the total line in which the item should appear. The item description for the input field is displayed in the application.

(C) SAP AG AC815 10-17

© SAP AG 1999

Objects


Partner

Collateralvalue

Collateral

New businesstable

Fileddocuments

Loans

Master Data - Objects

Objects can be assigned to loans that belong to the product category Mortgage and where the flag Objects active is set in the product type definition.

(C) SAP AG AC815 10-18

© SAP AG 1999

Master data

- Create

- Change

Create/Change loans

Objects

Collateral

File

Master data- Create- Change- Assign



Master Data - Procedure

Master data for objects (as well as collateral and files) can be created separately to a loan. From a loan (application, offer, contract), you can access existing master data; this can be assigned to one or more loans.

Alternatively, you can create master data from a loan, and this is then assigned to the appropriate loan automatically.

(C) SAP AG AC815 10-19

© SAP AG 1999

YesYesYes NoNoNo

Address available?

Create object dataCreate object data

Create objectCreate object

Master data Loans

Create addressCreate Create addressaddress

Creating Objects

(C) SAP AG AC815 10-20

© SAP AG 1999

Land register

Main objectMain objectAdditionalAdditionalobjectobject

LoanLoan

Land register

Object - Loan

You can assign one or more objects to a loan. If there are several objects, you must define one of them as the main object (object classes: Main, additional, joint liability). The data is included in the main object in the decision-making stage.

If encumbrance rights exist for the objects, you can maintain the encumbrance right data as soon as the object is linked with a loan.

(C) SAP AG AC815 10-21

© SAP AG 1999

Basic dataBasic data Additional dataAdditional data Parts of building

Parts of building

Land register data

Land register data

Basic dataLand register (name)Valuation bases...

Real estate registerSection ISection IISection III

Object - Data

Maintenance of the land register name is optional; you only need this name if encumbrance rights are to be documented in the object data.

If you want to create correspondence for the land registry, you have to maintain the land registry as a business partner with the appropriate role category. If this is not required for the correspondence, it is sufficient to simply specify the land registry names in the object.

You can manage an "Online land register" for information purposes.

(C) SAP AG AC815 10-22

© SAP AG 1999

Land registryLndRegist. from

No. De Prcl Parcels RPRNo Business typeFor PropOld LocSubDist Area Location

.

.

Land Registry WashingtonWashington

333 40 172,175 7466 1-family houseWashington 325.00 Outskirts

Object - Real Estate Register

Some of the data from the land register details is used in the collateral value calculation (for example, the area specification is used to determine the land value).

(C) SAP AG AC815 10-23

© SAP AG 1999

Land registryLndRegist. from

No. De List of properties RankAmount Currency Type of chge

Land Registry WashingtonWashington

2 2100,000.00 UNI 1 MortgageMortgage Bank, Washington

1 1250,000.00 UNI 2 Land chargeIDES

Object - Section III

You can use section II to enter encumbrances. You can maintain and change third party rights in the land register data at any time. You enter encumbrances when the object is assigned to a loan. The data you enter here is transferred automatically to the fields in Section III of the land register data; this data cannot be changed in section III. You can however make changes via the loan data.

If you branch to the land register data from the Change loan function via the object, you cannot change the land register data. In order to avoid data inconsistencies, the data is only displayed in the loan.

(C) SAP AG AC815 10-24

© SAP AG 1999

Loan~~~~~~~~~~~~~~~~~~~~~~~~~~~

ObjectObject

Sec. III) Encumb. 8819

Assigned to

Encumbrances Object data

Land register data

Automatically entered in

Encumbrances

(C) SAP AG AC815 10-25

© SAP AG 1999

Object overviewObject number Object type

Company code 0001 30A Mortgage loanLoan number 10000000 60 Contract

1000000001

Create F4Name1000 - Encumbrance1001 - Assigned encum.

Encumbrance overview

Collateral typeCollateral type

Loans: Object - Encumbrance

Once you have entered the land register name, you can create encumbrances. The encumbrances can be divided into collateral types and you define these in Customizing (for example, original rights, assigned rights).

(C) SAP AG AC815 10-26

© SAP AG 1999

V

Object number 1000000000Land registry Washington

250,000.00 UNI

Encumbrance overview/detail

Collateral type EncumbranceType of charge Mortgage Ledger/letter

AmountRight acc.toland regis.

Creating Encumbrances

When you create an encumbrance, you enter information such as the type of charge (mortgage, land charge), the mortgage type (ordinary mortgage, claim-securing mortgage), and the amount.

(C) SAP AG AC815 10-27

© SAP AG 1999

ObjectObjectdatadata

-

-

Loans

Master Data

Collateral Object

Object TypeLand Register Type

-

- Basic Data

+

+

+

Additional Data

Parts of Building

Collateral Val. (Long Version)

F4

Customizing: Object

In the IMG under 'Collateral Object', you define default values for some of the object data fields.

(C) SAP AG AC815 10-28

© SAP AG 1999

Collateralvalue

Objects


Partner

Collateral

New businesstable

Fileddocuments

Loans

Master Data - Collateral Value Calculation

(C) SAP AG AC815 10-29

© SAP AG 1999

Master data: Collateral val.calc. (CVC) Create/Change object

- Create/Change

Object

ObjectObject

--> CVC long version

Environment

--> CVC long version--> CVC short version

Collateral Value Calculation - Procedure

You have two options for calculating the collateral value. The long version uses the programmed calculation structure. The short version is a calculation based on forms; in the same way as for the credit standing calculation, you can determine the layout of the calculation for the short version by making appropriate settings in Customizing.

Some of the data from the object is used in the collateral value calculation (long version), for example, the area specification is used to determine the land value. You make settings in Customizing to determine whether the data transferred to the collateral value calculation can be changed. If you create a collateral value calculation (long version), and then make changes to the object data, these changes are not transferred to the existing collateral value calculation. You have to create a new collateral value calculation. The changes to the object data are automatically included. To create the new collateral value calculation, you can use the function Collateral value reference on the initial screen; the prices are copied from an existing collateral value calculation.

(C) SAP AG AC815 10-30

© SAP AG 1999

Collateral values - overview

Revenue valueAsset value

Build.value

Land value

Build.valueParts of building

Administrativecosts

Revenue value -Parts of building

Collateral value - details

Collateral Value Calculation Long Version -Overview

(C) SAP AG AC815 10-31

© SAP AG 1999

Create Collateral Value: DetailsCreate Collateral Value: DetailsCreate Collateral Value: Details

Asset valueRevenue valueMean valueThPrtyExpOpin.Proposal basis

Land valueBuilding valueMarket valueSelling valueDeductionProposal

Fixing dateRating base

Collateral val.

Collateral values

Fixing

0

0.00

0.00

10000000010000000002

20433, 1 Main StreetObject numberColl. no.

:

Collateral Value - Details

(C) SAP AG AC815 10-32

© SAP AG 1999

1000000001 19 Forest Street / 69190 Washington

8000

400 5 4008.400 8.4001.260 15 1.2609.660 9.660

10 9668.694

Create Collateral Value: Building Value of Other ObjectsCreate Collateral Value: Building Value of Other Objects

Building partsGrounds Construction costs Construction incidental costsTotal Collateral mrkdwnBuilding value

Surcharge

Price New value Dep. Curr. val.

GaragesPark.sp.Base costs

Stat. build. val.

Transfer building parts

318,176.25

8,000.001,000.00

300,000.008,000.002,000.00

310,000.00 0.00000

374,325.00

0.00

48,825.00325,500.00

15,500.00

300,000.008,000.002,000.00

310,000.00

15.00000

5.00000

15.00000 56,148.75374,325.00

48,825.00325,500.00

15,500.00

Object numberColl. no.

1000000001 20433, 1 Main Street

Collateral Value: Building Value

On this screen, you calculate the building value of an object. The system calculates the values automatically (gray fields in the above illustration) on the basis of the data you enter in the fields that are ready for input (white fields).

(C) SAP AG AC815 10-33

© SAP AG 1999

Create Collateral Value: Building Value of Other Objects Part ofCreate Collateral Value: Building Value of Other Objects Part of BuildingBuilding

Object numberColl.no.

BuilPrt Cubic area Price New val. BuildPrtTyp Depr.

Build. parts

Totals for all building parts 250,000.00250,000.00

1000000001 20433, 1 Main Street

11

625.00EFM

400 250,000.00250,000.00

Curr. val.

Collateral Value: Building Parts

(C) SAP AG AC815 10-34

© SAP AG 1999

1000000001 19 Forest Street / 69190 Washington

Create Collateral Value: Land Value of Other Objects PropertiesCreate Collateral Value: Land Value of Other Objects Properties

Property Parcel Parcels Area

Properties

Total for all properties: 0.00 125,000.00

Object numberColl. no.

1000000001 20433, 1 Main Street

1 6

250.00

500.00

125,000.00250.00

Land valueTotalDevel.Price

Collateral Value: Land Value

(C) SAP AG AC815 10-35

© SAP AG 1999

Create Collateral Value: Revenue ValueCreate Collateral Value: Revenue Value

Number Rnt/unit Gr. rev.0.00

00

10

0.000.00

Transfer building parts area Transfer build.parts gross rev. Mnth. gross profitYearly gross profitTotal yrly gr. profitAdmin. csts (C/R)Yearly net profit

Commercial Resident.0.000.000.000.00

0.000.000.00

0.00

0.000.00

0.000.00

///100 100

500.0060.00

110.00

60.00720.00

25,0000 180.00540.00

5,0000 9,818.189,818.18

1000000001 20433, 1 Main StreetColl. no.

Object number

Commercial ExternalAreaGarages

Park.spaceResident. ExternalArea

GaragesPark.space

Revenue value

Collateral Value: Revenue Value

(C) SAP AG AC815 10-36

© SAP AG 1999

Create Collateral Value: Revenue Values Parts of BuildingCreate Collateral Value: Revenue Values Parts of Building

Object number

BuilPrt C/R Usage type Area RentGross rev. BuildPrtTyp

Build. parts

1000000001 20433, 1 Main StreetColl. no.

1 0 11

Resident.SFH

110 15 1,650.00

Collateral Value: Revenue Value Building Parts

(C) SAP AG AC815 10-37

© SAP AG 1999

Create Collateral Value: DetailsCreate Collateral Value: DetailsCreate Collateral Value: Details

Asset valueRevenue valueMean valueThPrtyExpOpin.Proposal basis

Collateral values

Land valueBuilding value Market valueSelling valueDeductionProposal

Fixing dateRating base

Fixing

Collateral val.0

0.00

368,176.25286,638.10

125,000.00280,381.50

405,000.00

400,000.00

Object number 1000000001 20433 1 Main StreetColl. no.

327,407.18

400,000.00375,000.00

Volume unit M3 Cubic meter UNIArea unit Square meter Acc/Part-owner. 0 No

Expert 1 Summ.val.det. Valuation stat. Provis.

M3Currency

1Valuation type

410,000.00

View

Collateral Value: Proposal Basis

On the basis of the collateral value specifications determined by the system, you enter a proposal basis on this screen. When you press ENTER, the system fills the 'Proposal' field automatically.

Via Collateral value -> Fix, you can fix the final value of the object. You cannot change a fixed collateral value calculation.

(C) SAP AG AC815 10-38

© SAP AG 1999

-

-

Loans

Master Data

Collateral Object

-

-Collateral Value (Long Version)

F4

ObjectObject

Collateral value calculation

-Valuation TypeRating Base

Functions-- ...

- Credit Standing andCollateral Value Determination

Define CalculationForms

Customizing: Collateral Value Calculation

(C) SAP AG AC815 10-39

© SAP AG 1999

Form CT V Form items description

Overview of item types

Overview of item typesItT T CT ItT Form items description1 1 9 Land value2 1 4 9 Property value sqm x in DM

0101 92 Determination of collateral value

Overview of forms

Customizing: Collateral Value Calculation Forms

Customizing for the collateral value determination short version is similar to the process for the credit standing calculation.

(C) SAP AG AC815 10-40

© SAP AG 1999

Collateral

Objects


Partner

Collateralvalue

New businesstable

Fileddocuments

Loans

Master Data - Collateral

Collateral objects can be assigned to loans where the flag Collateral objects active is set in the product type definition.

(C) SAP AG AC815 10-41

© SAP AG 1999

Master data

- Create

- Change

Create/Change loans

Objects

Collateral

File






Alternatively, you can create master data from a loan and this is then assigned to the appropriate loan automatically.

(C) SAP AG AC815 10-42

© SAP AG 1999

Building loan agreement

OtherContracts

Life insurance

Guarantees

Pledgedsecurities

Other credits

Collateral

(C) SAP AG AC815 10-43

© SAP AG 1999

Collateral: DataCollateral: Data Life insurance

Building loan agreement

SecuritiesGuarantees

.....

Collateral data- Amount- Currency- Life insurance contract number- Security ID- ...

Assignment data- Collateral contract date (assignment)- Amount of assigned portion- ...

Collateral - Data

(C) SAP AG AC815 10-44

© SAP AG 1999

Short name Total value Assigned value

Coll.20002001

EndowmentTerm life ins.

NumberTotal/Value

Collateral

Company codeLoan number Borrower

?

Assigned on

Short name

Mortgage loansContract


?

' -> Create '

0001 30A6010000000

Create Collateral

When you create data for a collateral object, you first define which type of collateral is relevant, for example, whether you want to enter data for life insurance or a security. The system then branches to the corresponding entry screen as defined in Customizing.

(C) SAP AG AC815 10-45

© SAP AG 1999

Loans

Master Data

Collateral

Collateral Types

Guarantee Types IGuarantee Types II

Special TreatmentPledge StatusSpecial Arrangements

-

-

Definecollateral types

Special characteristicsfor guarantees

Special characteristicsfor life insurance

-F4

Customizing: Collateral

(C) SAP AG AC815 10-46

© SAP AG 1999

Col. Short name Name Cat.

1000 Encumbrance Encumbrance 11001 Ass. encumbr. Assigned encumbrance 112000 Endow. policy Endowment policy 22001 Term life ins. Term life insurance 2

Col. Short name

EncumbranceAssigned encumbrance

10001001

F4 "Encumbrances" F4 "Collateral"Col. Short name

EndowmentTerm life ins.

20002001

Customizing: Collateral Types

In Customizing, you define the name of the collateral types to be used in the application. When you assign a corresponding collateral type, the relevant entry screens are defined.

Collateral types with category 1 (encumbrance, own rights in section III), or 11 (assigned encumbrances) can only be used in the application with an object for entering encumbrances. Collateral types with other categories are only available with the other collateral objects. An exception to this is collateral category 50 (main collateral). A collateral type with this category can be retained in the loan basic data for information.

(C) SAP AG AC815 10-47

© SAP AG 1999

Fileddocuments Collateral

Objects


Partner

Collateralvalue

New businesstable

Loans

Master Data - Filed Documents

(C) SAP AG AC815 10-48

© SAP AG 1999

Master data

- Create

- Change

Create/Change loans

Objects

Collateral

File




Master Data - File Procedure


Alternatively, you can create master data from a loan and this is then assigned to the appropriate loan automatically.

File management in the R/3 System is similar to a file checklist. The file contains a checklist that lists the documents in the real, physical file.

In the file, you can only maintain the basic data as pure master data. When you enter the document information, you have to assign it to one or more loans.

To create a file from a loan, you have to first save the loan; you need a loan number to assign the file.

You can only delete a file if no loan has been assigned to it.

(C) SAP AG AC815 10-49

© SAP AG 1999

Filed documents

File 1 File number= File name

File 2 File 3

Borrower A

Loan A1 Loan A2 Loan A3

Borrower B

Loan B1 Loan B2 Loan B3

File 4


The filed documents are all documents that you create in the system. Each individual file is identified by a file number (the file name).

You specify the file in the loan data (correspondence). You can create a file for each loan; or one file for each borrower, where you specify the file name in all of this borrower's loans; or you can create a file for all business partners.

(C) SAP AG AC815 10-50

© SAP AG 1999

File name

Type of fileCreation dateFile storage loc.

File basic data

BorrowerLending dateLend.loc.

File borrowing data

File number

Create documents

BrownBrownBrown

BROWN - MORTGAGE LOAN

0104/09/YY Ent. by SmithFile archive

Documents (overview)

File: Create File: Basic Data

When you create a file, you can branch to the checklist via Create documents. In Customizing, you define the layout of the checklists and which checklist should be displayed for each product type and in which status.

If you have maintained information for the individual documents, via Documents overview, you can display the documents that you have already processed. Via Create documents, you can then branch to the documents that you have not yet processed.

(C) SAP AG AC815 10-51

© SAP AG 1999

Selection of Documents to be Created for Status/ContractSelection of Documents to be Created for Status/Contract

File number BROWN

Dty. Document name DSt. Assign contract1 Loan application2 Cost sheet3 Financing plan4 Personal voluntary disclosure for co-applicant5 Salary statement for the last 3 months6 Annual earnings statement from previous year7 Income tax assessment from previous year8 Balance sheets with P+L for the previous years9 Income tax assessment for the last 2 years10 Rental agreements

:

2

22222222

0

xx

File: Checklist

On this screen, you select the documents for which you want to maintain information. The document status (DSt.) informs you, for example, whether the document type is complete (2), not complete (1), or does not exist (0).

If you have assigned a file to several loans, via Assign contract, you define whether the information from the relevant document type is applicable for this contract only, or for all loans belonging to this file.

(C) SAP AG AC815 10-52

© SAP AG 1999

Document typeDirectionDocStatusStorage IDStorage locationEntry date

..Assignment

..Notes

Document on file

File number

F4F4

F4F4

DType Document name0001 Loan application0002 Cost sheet0003 Financing plan0004 Personal voluntary disclosure0005 Salary statement for ...: :

DTypeDType Document nameDocument name00010001 Loan applicationLoan application00020002 Cost sheetCost sheet00030003 Financing planFinancing plan00040004 Personal voluntary disclosurePersonal voluntary disclosure00050005 Salary statement for ...Salary statement for ...:: ::

Indicator1 File archive2 Vault3 Central register

IndicatorIndicator11 File archiveFile archive22 VaultVault33 Central registerCentral register

BrownBrownBrown

File: Supplement Checklist

If the checklist does not contain all of the document types relevant in this case, you can add document types; the list of document types is defined in Customizing.

(C) SAP AG AC815 10-53

© SAP AG 1999

Document overviewDocument overviewDocument overview

File number BROWNFile number BROWN

DType Document name DSt R Date1 Loan application2 Cost sheet

20

RI 04/15/YY

Missing documents

2222222

2 Cost sheet3 Financing plan4 Personal voluntary disclosure for co-applicant5 Salary statement for the last 3 months6 Annual earnings statement from previous year7 Income tax assessment from previous year8 Balance sheets with P+L for the previous years9 Income tax assessment for the last 2 years

10 Rental agreements:

20

File: Document Overview

If you have maintained information for the individual documents, via Documents overview, you can display the documents that you have already processed.

Via Missing Documents, you can display all documents (processed and unprocessed) that are not identified as complete.

(C) SAP AG AC815 10-54

© SAP AG 1999

Master Data -> Filed Documents

Company Code-Dependent Settings for Product Type --> Status per Product Type

File TypeFile Storage LocationDefine Document TypesDefine Document GroupsAssign Document Types to Product Groups (and Document Groups)

Customizing: Filed Documents

(C) SAP AG AC815 10-55

© SAP AG 1999

DTyp Document name Direction of doc.

1 Loan application2 Cost sheet3 Financing plan4 Personal voluntary disclosure for co-applicant5 Salary statement for the last 3 months6 Annual earnings statement from previous year7 Income tax assessment from previous year8 Balance sheets with P+L from previous years9 Income tax assessment for the last 2 years10 Rental agreements

:

RIIEEEEEEE

Customizing: Document Types

You define all document types that you want to use with a loan. In Customizing, you define the direction of the document flow. This is displayed in the checklist in the application for information purposes. I: Internal A: Outgoing E: Incoming R: Return (outgoing and incoming) S: Others

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© SAP AG 1999

DGr Text

1 Application documents

2 Offer documents

3 Contract documents

Customizing: Document Groups

The document group is used to group document types. You can split the groups according to the specific requirements of your business.

(C) SAP AG AC815 10-57

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Document

group 1

Document

group 2

Document

group 1

~~~~~~~~~~~~~~~~~~~~~

~~~~~~~~~~~~~~~~~~~~~

~~~~~~~~~~~~~~~~~~~~~

~~~~~~~~~~~~~~~~~~~~~

~~~~~~~~~~~~~~~~~~~~~

~~~~~~~~~~~~~~~~~~~~~

~~~~~~~~~~~~~~~~~~~~~

Document types

Product type A Product type A Product type B

Customizing: Assign Document Types

You assign document types for a specific document group and product type. This determines which documents belong to which document group and which product type the documents should be used for.

Note: You should only assign the document types required for all loans with the particular product type. You can create additional document types required in individual cases in the application individually in the respective file.

(C) SAP AG AC815 10-58

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Entry 1 of 9

CS DGr1



0001 30A

3120 23331 13234 23437 33760 335

Contract offer completedContract completedContract

FI CGAFSxxxxxx

33

Contract offerApplicn completed/deleted

Application

Field selection

x

Company code-dependent settings for product type - status per product type

Customizing: Status - Document Groups

Finally, you define the checklist to be used in each company code and for each status, that is the document group, for the product type.

(C) SAP AG AC815 10-59

© SAP AG 1999

Loanpartner00

Loan contract

File number Loan partner 00File created

...43 Loan contract R

Document overview

Correspondence created and stored(for example, loan contract)

Details

Button

Access to optical archive

Optical archive

Optical Archiving of Correspondence

You can archive loan correspondence that you create optically if the following conditions are fulfilled: Loan Customizing Basis Customizing for archiving The document to be archived has a spool request number The document to be archived is an original document (not a copy) A file has been assigned to the loan

When you create correspondence, for archiving purposes, you must select "Print and file" on the main spool screen in file mode. You can then archive the correspondence created optically. You can access the archived documents via the file. From the document overview, go to the detail screen.

(C) SAP AG AC815 10-60

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Loans Customizing

- Create document types, direction A (outgoing) or R (return)- Assign the document to be archived to the document type- Activate archiving

Basis Customizing

Basis Components --> Basis Services --> SAP ArchiveLink --> Basic Settings --> Maintain Links

Customizing: Optical Archiving

Loans Customizing: - Create document type: Master Data --> Filed Documents --> Define Document Types - Document: Functions --> Correspondence --> Define Documents - Activate: Basic Settings --> Installation Parameters

Basis Customizing for archiving: - Value of object type field "BUS1170“ - Value of document type field "VDOxxxx", xxxx indicates the document group.

(C) SAP AG AC815 10-61

© SAP AG 1999

New businesstable

Collateral

Objects


Partner

Collateralvalue

Fileddocuments

Loans

Master Data - New Business Table

(C) SAP AG AC815 10-62

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Table Effective from

HYP_0105/01/YY

YY 05 001

Rnk

001

Fxd int.

2 Y

DRate %

98.00000

Nom. int.

Repayment

6.00000

4.00000

Ref. int.

Rep. sett.

PF

PF

PE

PE

Frq

3

3Frq

IS

IS

+/-

PF

EIM

1

PE

ICM

Frq ISx

Variants

Contract: ConditionsContract: Conditions

Items

Nominal interest

Annuity repymt

6.00000

4.000003

3

x

x

Conditions table

1

05/31/YYEffective to

New Business Table

You can let the system enter the condition items for a contract offer automatically on the basis of predefined conditions in a new business condition table. Condition tables allow you to avoid input errors, thus simplifying the later steps in the loan process.

In the loan, choose the function Conditions table, and select the relevant table with the corresponding condition variants. You can only use tables where the Fixed from date of the loan lies within the validity period.

You can deactivate or delete new business tables. You can also display deactivated tables and use them as a reference for creating new tables. Deleted tables can only be displayed. You cannot reactivate or delete activated tables.

If the release procedure is active for new business tables and you release a table, it can only be deactivated, not deleted. If the release is active, but you have not released the table, or the release is not active, a table cannot be deactivated, it can only be deleted.

If you specify an authorization group in the new business table, only employees with the corresponding authorization group may process the table.

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1. Functions -> Process Management

Activity type 'N' has to be maintained!

FCat Flow category CTyp

TTAN Annuity repayment 261TZ Nominal interest 201

2. Transaction Management -> Condition Types -> Define Condition Types for New Business Table

Activity type N New business

Customizing: Condition Tables

Assign the condition types to be filled by data from the table to activity type "N".

(C) SAP AG AC815 10-64

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- Accrual/deferral- Valuation- Summarization- Information system- Special cases- Rollover- Master data- Complete process

Interest. Appl. Offer Contract DisburseDisburse-- Other Other RolloverRolloverparty mentment activitiesactivities

Decision-making



(C) SAP AG AC815 10-65

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Interestedparty

(request)

InterestedInterestedpartyparty

(request)(request)

DeleteDeleteDelete ReactivateReactivateReactivate

ChangeChange

DisplayDisplayCreateCreate

Interested Party: Function Overview

The function Interested party contains the basic data maintenance for a customer loan application. You maintain the person making the application as a business partner in the role Interested party in the system.

You can fix the following application data: - Company code - Capital required - Product type - Application of funds - Date of application - Rejection data

If you have entered an application for an interested party in the system, you cannot enter a new application until you have processed the first application further.

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Interested party already in system as a partner?

Basic dataInterested Party: CreateInterested Party: CreateInterested Party: Create

Company codeRequestedCap

Product typePurpose of loanAcceptance type

Application dateReserved untilContact person

Mortgage loanHouse buildingIn person

RejectionNon-acceptanceRejection on

Reason

150,000.00 UNI0001

30A0103

03/01/YY04/15/YYSmith

- Create partner - Assign role

NoYes

Interested Party

When you enter an application for a business partner, the system checks whether the role category Interested party has already been assigned to this partner. If it has not been assigned, this role category is automatically assigned to the business partner when you create the application.

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Contract

Transfer to offerTransfer to offer

ChangeChange WaiveWaive ReactivateReactivateDisplayDisplayCreateCreate

Application


Transfer to Transfer to contractcontract

Contract offer


Application/Offer/Contract - Function Overview

The different statuses for a loan reflect the contract acquisition process. The three most important statuses are Application, Offer, and Contract (interested party is not a status).

When you create an application, you can transfer the data to an offer or a contract. If an offer exists, you can transfer the data to a contract.

You define the procedures, that is, the status combinations permitted, in Customizing. The entry screens for applications, offers, and contracts are basically the same. You are free to decide which data you maintain in each status. You usually enter the information that forms the basis for the credit decision in the application, for example, collateral entered, objects assigned. The conditions are usually defined when you create an offer. When you transfer a contract, you should enter all relevant data.

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TransferTransferto contractto contract

TransferTransferto offerto offer

ApplicnApplicn

CreateCreateChangeChange

DisplayDisplay

WaiveWaiveReactivateReactivate

Full waiver

Application: Function Overview

If a customer makes a loan application, and then withdraws the application, you can deactivate the data you entered by waiving the application. When you enter a waiver, you can no longer use the application data for further processing; you can however, display it.

(C) SAP AG AC815 10-69

© SAP AG 1999

Sample loan


Reference

Sample loan no.Partner

0001/internal/30A

Create Loan: Initial Screen

The screens for entering applications, offers, and contracts all have the same basic layout. In Customizing, you can use the field selection to control how fields are processed in each status.

If you want to create a loan (application, offer, contract), there are 3 options: 1. Create all the master data. 2. Transfer the data from a sample loan. You can create a sample loan using the Sample loan

function. The data is entered in the same way as for a "standard" loan, but without a business partner. If you want to use a sample loan to create a new loan, enter the corresponding data in the reference section.

3. Copy the data from a standard contract you have already created. Choose Copy from... . A dialog box appears prompting you to define the contract from which data should be copied.

(C) SAP AG AC815 10-70

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Create Contract: Initial ScreenCreate Contract: Initial ScreenCreate Contract: Initial Screen


0001/internal/33A

Business partner selectionRole category main borrower

E N T E R

Loans - Initial Screen

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© SAP AG 1999


All functions are available for processing applications, as discussed for contracts.

You usually enter conditions in conjunction with offers that youpresent to customers.

All data that forms the basis for the loan decision is entered in the application; this includes data for the collateral and objects offered.

Contract - Basic Data

(C) SAP AG AC815 10-72

© SAP AG 1999

Contract Contract offeroffer

ChangeChange

CreateCreate DisplayDisplay

ContrContr. acceptance. acceptance Offer waiverOffer waiver

ReactivateReactivate

Partial waiverFull waiver

Offer: Functions Overview

You can create offers, or transfer data from an existing application. If the customer rejects the offer, this is entered in the system as a full waiver. If the customer accepts the offer, but requires less capital, you can enter the loan reduction as a partial waiver. If the customer agrees with the offer, you can transfer the data to a contract via Contract acceptance.

(C) SAP AG AC815 10-73

© SAP AG 1999

Transfer to Transfer to offeroffer

Create offer(s) wherenecessary(offer proposals/variants)

Application

No. 10000001 No. 10000001 No. 10000001

Contract

Offer Proposals

You can enter several offer proposals or variants for each offer that you create. Example: The customer requires an offer for a mortgage loan of 100,000.00 UNI. You present the following offer with three variants: 1. 100,000 UNI, 2% discount, 3% fixed interest, repayment in monthly instalments. 2. 100,000 UNI, no discount, 4% fixed interest, repayment in monthly annuity repayments. 3. 100,000 UNI, 1% discount, variable interest EURIBOR + 2%, repayment in monthly instalments.

If the customer decides to take the loan, you can transfer one offer variant to a contract.

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All functions are available for processing offers, as discussed for contracts.

You usually enter conditions in conjunction with offers that you present to customers.

Offer - Basic Data

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© SAP AG 1999

Loans basic dataLoans basic data

Condition header

Cash flowCash flow

Condition items

Planned records

------------------------------------------------------

Configuring Conditions

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Further processingcompletely orpartially rejected

Contractoffer

Full waiver

Contractoffer

Partial waiver

Contractoffer

10,000 UNI

Waive Contract Offer

(C) SAP AG AC815 10-77

© SAP AG 1999

Non-accept. reasonRejec./waiver on

Company codeLoan numberBorrower . .

0001 Mortgage loansContract offer

30A20

General02 Competitor's conditions better11 Incorrect entry in offer

Status

Prev. statusNew status

Contract offerContract offer completed

2034

The loan is inactive - can only be displayed

Full Waiver

A full waiver deactivates the offer, that is, you cannot carry out any further processing. You can however display the data.

(C) SAP AG AC815 10-78

© SAP AG 1999

Company codeLoan numberBorrower . .

0001 Mortgage loansContract offer

30A20

Contract cap.Value-dated capitalDisbursement obligationNew disbursement oblig.

150,000.000.00

150,000.00140,000.00

UNI

Start of term

Calc. date 04/15/YY 10,000.00Amount

In the loan: Condition item "Capital reduction" added automatically

Partial waivers

Contract data

Partial Waiver

If the customer accepts an offer, but not for the full amount, you have two options for entering the waiver of part of the capital: 1. You can reduce the commitment capital in the loan in the condition header. Disadvantage: The history is not immediately visible. 2. You can use the Partial waiver function. The commitment capital is retained in the loan; a new condition item is added automatically using the capital reduction. The cash flow, and all other calculations, are based on the reduced capital.

(C) SAP AG AC815 10-79

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ContractContractContract

One contract offerOne contract offerOne contract offer

CreateCreate ChangeChange DisplayDisplay WaiveWaive

TransferTransfer

CreateCreate ChangeChange DisplayDisplay WaiveWaive ReactivateReactivate

Contract Offer/Contract - Functions Overview

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USER LEVEL

Product Product categorycategory

Flow categoryFlow category Calculation Calculation categorycategory


SYSTEM LEVEL

Status Status categorycategory


Status definition/Status definition/status transfersstatus transfers

Flow typeFlow type


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Entry 1 of 9

CS DGr1



0001 30A

3120 23331 13234 23437 33760 335

Contract offer completedContract completedContract

FI CGAFSxxxxxx

33

Contract offerApplicn completed/deleted

Application

Field selection

x

Company code-dependent settings for product type - status per product type

Customizing: Status Definitions

CS: Contract status: In Customizing, you must define the statuses you want to use in your company (application, offer, contract, waiver). The system uses the internal status (internal level) to control processing.

DGr: The document group determines the checklist that can be processed for loan documents in the respective status.

FI: If the value "3" (FI posting to a customer account) is entered in this column for a particular status, this is the first status in which postings can be made to a customer account (or to a G/L account, see product type). If no customer account exists for the business partner, the system also generates a customer account. If the value "4" is entered in this column, this is the first status in which postings can be made (not to customer accounts).

AFS: Alternative field selection. You can either make the field selection control settings for the product type (the settings then apply for all statuses for this product type), or for each status of a product type (for example, if you want to use the fields differently in application and contract status). If the indicator in this column is set, field selection control applies per status. If the indicator is not set, the field selection settings apply for all statuses of a product type.

CG: Generate cash flow: The system saves the loan data to the database for the first time when a disbursement is saved or posted. If you require database records beforehand, you can set the CG flag for an earlier status. The system then writes the loan records to the database when the loan reaches this status. (This is relevant, for example, for calculating commitment interest).

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Position... Entry 1 of 9

PrevStat. Status name0

Status name New stat.Application


0001 30A

10 Contract offer200 Contract601 Application11 Contract offer201 Application waived/deactivated3120 Contract offer2020 Offer waived/deactivated3420 Contract60

ApplicationApplicationApplicationContract offerContract offerContract offer

Company code-dependent settings for product type - status tfrs per product type

Copy stat. trans.

Transfer matrix of external statuses

Customizing: Status Transfers

For each company code, you define the permitted status transfers for each product type. This controls the processing steps permitted in the loan processing. Example: "Previous status 0" to “New status 20" means that you can create an offer manually. You can reflect every business process required by selecting the relevant status transfers for your business. Transfers that are not defined are included as not permitted.

To carry out change transactions for a permitted status, you have to create an entry where the previous status is the same as the new status. Example: If an offer is changeable, you define the following: Previous status 20 - new status 20.

The graphic above shows the maximum possible status transfers. This setting is not relevant in practice and should be adjusted to correspond with the organizational processes in the business during system implementation.

(C) SAP AG AC815 10-83

© SAP AG 1999

1 Application Transfer toContract

Transfer toOffer

2 Offer Transfer toContract

3 Create contract

4 Application Transfer toContract

ApplicationContract

ContractOfferDecision-making5

Contract- 5 Ways to Enter Contracts in the SAP System

In addition to the 4 options already explained, you can also use decision-making to enter a contract in the system.

Decision-making is a special way of creating an offer, and is supported in the mortgages area. When you select the Decision-making function, the offer data, the main object information entered with the offer, the collateral value determination, and the credit standing check are displayed on a screen in compressed form. Information used for deciding on the offer is therefore available at a glance.

Decision-making refers to how you can or must continue processing from the Application status. If decision-making is active in Customizing, offer data can only be processed further using this function. If decision-making is required, procedures 1 and 4 are excluded. If decision-making is not active, you can still use it. Procedures 1, 4, and 5 are possible.

Irrespective of whether decision-making is active or not, procedures 2 and 3 are always available.

(C) SAP AG AC815 10-84

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Decision-making

TransferTransferto contractto contract

TransferTransferto offerto offer

ApplictnApplictn

CreateCreateChangeChange

DisplayDisplay

WaiveWaiveReactivateReactivate

Full waiver

Application: Decision-Making

(C) SAP AG AC815 10-85

© SAP AG 1999

DecisionDecision--making:making: Offer(s)Offer(s)

Collateral value

Application data

Credit standing calctn

Decision-Making - Overview

The following data is included on the decision-making screen: - Application data - Data for the collateral value determination for the main object.

(If several calculations are carried out, in the dialog box, select the data to be included in the decision-making. All calculations are displayed, irrespective of whether they are fixed or not; short versions are only included if they are created using form type 0101 (--> Customizing)).

- Data for the credit standing calculation. The data of the last calculation is displayed, irrespective of how or when the data was fixed. If there are calculations with different types of forms, in the dialog box, select the calculation to be included in the decision-making.

(C) SAP AG AC815 10-86

© SAP AG 1999

Decision base

Company codeApplication no.

Prop.prime costsCredit stand.surp.Exist. commitment

Application

Application capitalOf which %Of which %Debt serviceNew commitment

UNI

Contract F PTyp LTyp Commitm.cap. Stat. Nom.int. Disb. Term end

Loan for application


Loan purpose 01

6040

House construction

500,000.00500,000.00

250,000.00300,000.00200,000.00

3,350.00 63.729

30A 150,000.00

000110000000

Object data

Decision-Making

After you enter the application number, the application data, object data, collateral value data, and credit standing check data is imported.

The debt service percentage means: 63.729% of the total net income is used for existing loans (from you and other lenders).

Using the appropriate functions, you can transfer the application data to offers or contracts.

(C) SAP AG AC815 10-87

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Application

Create offer(s) wherenecessary(offer proposals/variants)

Create several offer(s)for each offerwhere necessary(offer proposals/variants)

Without decision-making

With decision-making

Contract

Contract

1000001

100000210000031000004

1000003

1000001

1000001

Transfer Transfer to offerto offer

Transfer to Transfer to several offersseveral offers

Offer Creation - Options

If you carry out processing without using decision-making, you can create one offer, but enter several proposals. Only one proposal can be transferred to a contract. The application, offer, and contract are managed with the same number in the system. This means that no history is available. If the contract exists, offer and application data is no longer visible.

If you carry out processing with decision-making, you can create several offers and several proposals for each offer. Only one proposal can be transferred to a contract. The application, the accepted offer/contract, and the offers not accepted are all managed with different numbers in the system. This means that a history is available. If the contract exists, the application data and the data of the offers not accepted is visible.

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Data Further processing

- Loan master data- Business partner- Object- Decision-making- New business table- Business operations- Capital transfer- Reversal- Incoming payment postprocessing- Disbursement

Release

Release in Loans

The release report is triggered by the release workflow: Staggered release procedure for most functions in master data and flow data processing in accordance with the security principle requiring at least dual control.

Release objects: 1 Flow data: Business operations*, capital transfer, reversal, incoming payment postprocessing,

disbursement. *(3 Release objects: Entering charges individually, entering charges as business operations, unscheduled repayment)

2 Central master data: Loan master data, business partners, objects. 3 Other master data: Decision-making, new business table (new business table and rollover table!).

Generic workflow functions: Definition of maximum times for work items: Acceptance, processing, run. Creation of storage Forwarding Resubmission

User-specific adjustment of workflow, for example, with regard to Runtimes Setting up user control as work item references for processors required (user determination via release object, company code, release level, product type) (see also the documentation under BC-Basis -> SAP Business Workflow).

(C) SAP AG AC815 10-89

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SAP MenuSAP MenuOfficeOffice

WorkplaceWorkplace

Workplace: User ABCWorkplace: User ABCInboxInbox

Unread documents 5Unread documents 5WorkflowWorkflow 22

Inbox

Classif. Title Date of entry

Rel: Disbursement - Loan 1000007 ....DD.MM.YYYYRel: New business table "Hyp".... DD.MM.YYYY

Release: SAP Business Workplace

When you create or change a release object, a new workitem is created and the release procedure is started. The person authorized to release receives the workitem in his business workplace automatically for further processing. The release procedure only has to be triggered manually for decision-making. The objects to be released are displayed as workitems in a table that is output via the ABAP List Viewer.

For each workitem, you can - Display the release history (date and time the object was created or changed; details of the user

that created, changed, released the object; release status). - Display the release object - Change the release object; you then have to release the object again. - Release the release object - Reject the release object; it appears as a workitem in the inbox of the person that started the

workflow.

(C) SAP AG AC815 10-90

© SAP AG 1999

Release object Long name Cat. Created by

BUSOP Disbursement of loan 1000007 F user 123...

Report for output of a release workflow overview- Selection by release objects on current date- Output via ABAP List Viewer- Display of relevant loans and company codes per object, as well as, for example, release and processing status of the workitem.

Overview of Workitems Loan

The monitoring report in the information system can be used to provide information about the release objects (business release: Loan workitems). The report can be used to determine where a workitem is located in the processing chain.

(C) SAP AG AC815 10-91

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Workflow log

Output Result Date Time

Rel.: Disbursement of loan 1000007 DD.MM.YYYY 07.15.....

- Loan master data, objects, partner, new business table: Data has been released

- Disbursement, business operations:Creation of planned records that are written to the database andthereby make posting possible

- Capital transfer, incoming payment postprocessing, reversal:Data is posted immediately (actual records)

Result of Complete Release

(C) SAP AG AC815 10-92

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+- Loans

Basic Settings

Transaction Management-

- Release

Main. Active IndsDef. Rel. Stat. Par.Adj./Copy WF Tem.

Rel. Obj. CoCd Cont. stat. PTyp Curr.ReSt. Act.

BPAR 01 11VDARL 0001 30A 11

Rel. Obj. Name ActiveAUSZ Loan cont. Disb.

Customizing: Release

In order to use the release, you have to activate the relevant release objects, specify the release status parameters for each object, and adjust the workflow template.

(C) SAP AG AC815 10-93

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Rel. object Name Short text Active

BPAR Business partner Partner

AUSZ Loan contract disbursement Disbursement x

Release: Object

You have to define the release objects for which the release procedure in Loans Management should be active.

If the release is active for master data objects (loan master data, data for the business partner assigned, collateral object), this data has to be released before you can carry out postings such as status changes. If the release is active for flow data objects (business operations, capital transfers, reversal, incoming payment postprocessing, disbursement), you cannot create a new flow record for this loan until you release the first one. For a loan, you have to release the master data before you can release flow data.

(C) SAP AG AC815 10-94

© SAP AG 1999

NameD ReStDDDDDDDDDDDDDDD

01011202122303132334041424344

No releaseReleasedEntered, one release levelReleased, 2 employeesFirst release, 2 employeesEntered, 2 employeesReleased, 3 employeesSecond release, 3 employeesFirst release, 3 employeesEntered, 3 employeesReleased, 4 employeesThird release, 4 employeesSecond release, 4 employeesFirst release, 4 employeesEntered, 4 employees

Release: Names

The release status provides you with information about the current status of a business operation to be released.

The first character corresponds to the number of people required for the release. The second character indicates the number of releases that have to be carried out. If both characters are identical, the user that created or changed the object that is to be released can carry out the (first) release. If both figures are different, only another user can carry out the release.

The release statuses are fixed in the system.

(C) SAP AG AC815 10-95

© SAP AG 1999

Rel. object CoCd

Status Limit amnt Curr. ReSt Active

AUSZ

AUSZ

TR00

TR00

30A

33A

11 x

100.000 FRF 32 x

Product type

Release: Parameters

To use the release procedure, you have to specify the object to be released and assign the release status parameters (as well as activating the release object). The release status can be activated as a general release obligation for all business operations; you can control the procedure further based on the company code (and possibly also the status, product type, and currency).

Example: The above entries mean: In company code TR00, you have to release all disbursement postings that refer to loans (product type 30A) once; disbursements from general loans (product type 33A) activated in contract currency FRF have to be activated three times (de facto twice) if the posting amount is equal to or higher than 100,000 FRF. You do not have to release any other business operation postings.

If several valid entries exist for one case, the highest release status is relevant.

(C) SAP AG AC815 10-96

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Company code

Cross-company code

Contract number

Name of main borrower

Selection via contract number

With open itemsWith other contracts

Portfolio: Loans to Partner

Using the report Loans to partner, you can select and process loan contracts with reference to specific partners or contracts.

If you carry out the selection for specific loans, the system branches to the contract data display. From there - depending on the authorizations assigned - you can branch to the functions Change contract, Disbursement, Unscheduled repayment, Enter charges as business operations, and Enter charges individually.

If you carry out partner-based selection, the system first determines all partners that are linked to the specified partner via the relationship type "alias". All the contracts to which this partner is assigned as main borrower are determined for the partners determined in this way. The system outputs the partners and contracts determined. By selecting a specific contract number, you can branch to further contract processing.

(C) SAP AG AC815 10-97

© SAP AG 1999

EvaluationEvaluation

Complete overview of loans

Total commitment per partner

Loan commitment

Information System: Portfolio - Evaluations

The complete loan overview displays the most important data for a loan contract. You can display open items for specific contracts. The following data is evaluated: Contract data, capital amounts, dunning data, bank details, payment data, and contract conditions.

The total commitment per partner report contains the details of the commitment capital, the valuated capital, and remaining capital for individual loans for a business partner. You can access the total commitment overview from a loan via Extras (key date: Today), or - with more selection criteria - via the information system (any key date possible). Here you have the option of evaluating only posted amounts, or also planned records; you can evaluate only those loans with status Contract, or also including offers.

The loans commitment accesses the data for the selected loans for all business partners.

(C) SAP AG AC815 10-98

© SAP AG 1999

Number ranges for:

Loan number

Collateral object

Collateral value determination

Collateral

Business operation

Interested party (request)

Rollover number

.................

Loans: Customizing for Number Ranges

The data maintained in Loans Management is usually saved with its own number in the system. You have to create number ranges for each of the different types of data.

Some objects require specific entries, for example: - Specific number range - Numeric or alphanumeric - External or internal number assignment. For more information about the individual requirements, see the Customizing documentation.

(C) SAP AG AC815 10-99

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Basic dataBasic data

Assignment/internal reference/characteristics

Alternative 1/alternative 2

Reference

CON SWIFT confirmation filesOPT Derivatives option referenceREF General referenceSWP Foreign exchange swap

Business 1 Business 1

Additional fields

Other references

User fields

Group keys

References

In order to document the relationship between business operations, you can define appropriate connections for an operation. The basic data for a loan contains additional fields, other references, group keys, and user fields that you can assign as required. The data entered and held here is used for information purposes; you can evaluate the data for the additional fields, other references, and group keys via drilldown reporting. (Note: You define the user fields in Customizing).

A "reference" between Treasury business operations documents a relationship between "n" objects, that is business operations (money market trading, foreign exchange, derivatives, securities), and contracts (loans). You create this object link with a reference type that controls the processing of a reference. There are references that are created automatically, for example, relationships between business operations that are components of a closing operation (foreign exchange swap). There are also references created explicitly by the user, for example, the "general reference". You can access information about existing references from a business operation, for example, loan contract, via Object links.

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© SAP AG 1999

Use the options for managing contract acquisition data in the system (application, offer, decision-making)

Use the options for managing additional loan data


Complete Process Including Master Data: Unit Summary

(C) SAP AG AC815 10-101

Exercises

Unit: Complete Process Including Master Data Topic: Credit standing check


• Enter information for a credit standing check

You want to assess the borrower’s personal and financial situation using the credit standing check in the system.

1 Create a credit standing calculation for your borrower (Loan partner XX). Save the borrower in the role of “Credit standing check”. Use calculation form 0001.

1-1 What is the result of the credit standing check (income - financial commitments) for your business partner?

1-2 Does a surplus or a deficit arise?

(C) SAP AG AC815 10-102

Unit: Complete Process Including Master Data Topic: Collateral objects


• Create collateral objects

• Maintain land register information for the object

A business partner object is to be the collateral for future finance. You enter general data and land register information as a basis of assessment for the collateral object (for example, collateral value determination).

2 Create a collateral object. Enter an address for this object.

2-1 Maintain a land register for your object.

2-2 Create two building parts. Define one for commercial use and one for residential use. Maintain units and areas for your building parts. Display the totals for your object.

2-3 Define "Loan partner XX" as the owner of the object.

2-4 Maintain an entry for your object in the real estate register for the land register. Display an overview of the master data fields for sections I/II/III of the land register. Define at least one encumbrance in section III.

Save the object and make a note of the number.

(C) SAP AG AC815 10-103

Unit: Complete Process Including Master Data Topic: Collateral value calculation


• Create collateral value calculations

You want to carry out a collateral value calculation to assess the collateral value of an object. In order to do this, the entries for the object must be complete.

3 Check whether all the relevant entries have been made for your collateral object (see the collateral object exercise), and make changes where necessary.

4 Create an interim collateral value calculation for your collateral object.

4-1 Calculate the building value. To do this, first calculate the value of the building parts. Maintain these values (price, depreciation).

Display the building value again. Have the details for the building parts been transferred correctly? Maintain the missing details for calculating the building value (for example, garages, external areas, collateral markdown).

4-2 Calculate the land value. Have the details for the land been transferred correctly from the real estate register?

4-3 Calculate the revenue value. First, calculate the revenue value for the building parts. Maintain the values for the rental revenue. Go back to the revenue value calculation. Have the details for the building parts been transferred correctly? Maintain the missing details for calculating the revenue value.

4-4 Maintain the remaining data for the collateral value calculation (in particular, a proposal basis).

4-5 Fix the collateral value. Specify the amount of the final collateral value and the valuation basis.

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Note:

Once you have fixed the collateral value, you cannot make any more changes to the data!

(C) SAP AG AC815 10-105

Unit: Complete Process Including Master Data Topic: Collateral and files


• Create collateral

• Create files

An endowment policy is to be used as additional collateral for future finance. The policy previously belonged to loan partner XX from the neighboring group. Create a file to summarize the data from loan partner XX.

5 Create an endowment policy as collateral and maintain the master data for the policy.

5-1 Assign loan partner XX to the collateral as policyholder.

5-2 Maintain the cash surrender value for the current date.

5-3 Enter special arrangements for loan partner XX from the neighboring group.

Save the collateral and make a note of the number.

6 Create a file for the documents from loan partner XX. The file is currently in the filing cabinet.

Save the file and make a note of the number.

(C) SAP AG AC815 10-106

Unit: Complete Process Including Master Data Topic: Interested party inquiry


• Create interested party inquiries

A potential customer has expressed an interest in taking out a mortgage loan with your company. You want to keep a record of the inquiry, the prospective customer, and the type of loan required in the system.

7 Create an interested party (prospective customer) in the system. Use the business partner that has already been created for your group (Loan partner XX). The business partner is interested in taking out a mortgage loan of 250,000 UNI with your company (company code TRXX). Enter the product type (30A), the purpose of the loan, and how the borrower contacted you. You want to reserve the inquiry for four weeks.

Save the inquiry.

(C) SAP AG AC815 10-107

Unit: Complete Process Including Master Data Topic: Application


• Create a loan application

• Assign files, objects, and collateral to the application

• Enter own encumbrances for an object

• Create documents for a file

The prospective customer has decided to apply for the loan. You now want to enter the loan application in the system.

8 Create a mortgage application. Enter your company code, TRXX, and the corresponding product type, 30A. Use the same business partner, but this time in the role of “Main borrower”.

8-1 The system transfers the information you have already entered for the interested party to the application. If necessary, you can make changes to this data. Enter the following additional details for the loan application:

• Loan type: 1A – loan

• Term of the loan: Maturity > 10

8-2 Assign the corresponding object for the business partner to the application. You can search for the object using a detailed matchcode search by master record, address, and land register data.

8-3 Look at the object data and the collateral value calculation that has already been carried out for the object. How high is the proposed collateral value for the object? Look at the existing entries in section III of the land register.

8-4 Enter an encumbrance in the same amount as the nominal amount of the loan.

8-5 Assign the endowment policy to the encumbrance as collateral. You can search for the collateral using a detailed matchcode search. If you have forgotten the number of your collateral, search for it using collateral type 2000.

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8-6 Then link the file that you created to the application using the matchcode search for the field File number.

Save the application.

8-7 In your file, note that the following documents already exist:

• Loan application

• Salary statement for the last three months

• Tax assessment for the previous year

(C) SAP AG AC815 10-109

Solutions

Unit: Complete Process Including Master Data Topic: Credit standing check

1 Create a credit standing check:

→ Accounting

→ Treasury

→ Loans

→ Master Data

→ Business Partner

→ Credit Standing Calculation

→ Create

→ Dialog box: Choose partner


Name Loan partner XX

→ Dialog box: Selected partner

Select the partner.

The screen for entering the business partner appears. A message appears at the bottom of the screen informing you that role category 0113 has been assigned to your partner. Do not make any changes. Save the partner.

→ Dialog box: Forms

You can choose one of two forms for entering the credit standing check. Select form 0001 and enter the basic data, the income, and the outgoings.

(C) SAP AG AC815 10-110

Unit: Complete Process Including Master Data Topic: Collateral objects

2 Create a collateral object:

→ Accounting

→ Treasury

→ Loans

→ Master Data

→ Objects

→ Create

→ Dialog box: Choose address

Specify the address for your object in as much detail as possible.

The system then checks this address against all the addresses in the central address management. The fewer details that you specify, the longer the search will take. If the system does not find your address, you can create a new address.

2-1 Maintain the land register:

Tab: Basic data

Enter the name of the land registry in the corresponding field (do not use the possible entries help).

In this field, you can either enter a text, or use the possible entries help to select a land registry. For this course, enter a text. You use the possible entries help for the field if you want to create correspondence.

(C) SAP AG AC815 10-111


Object type 12

Land registry (local court) For example, Washington

LndRegist. from For example, Bethesda

Page For example, 638

Prime cost/price For example, 600,000

Area unit M2

Volume unit M3

2-2 Create a building part:

Tab: Parts of building

Select the Create building part icon. You can create additional new building parts, or copy the first one that you created.

You can display the totals for all building parts.

Building part 1 (SFH)


Usage type 1 (privately-financed accommodation)

Building part type 1 (SFH)

Unit 1

Garages 1

External area For example, 100

Area collateral value For example, 200

Cubic area collateral value For example, 600

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Building part 2 (warehouse)


Usage type 6 (warehouse)

Building part type 3 (warehouse)

Unit 1

External area For example, 200

Area collateral value For example, 400

Cubic area collateral value For example, 2400

The details for the building parts are then included in the collateral value calculation.

2-3 Create a partner:

→ Pushbutton: Partner

→ Environment

→ Partner

→ Create in role

→ Dialog box: Select role

or


→ Create in role


You can choose one of several roles. Select the owner role, A800.

Dialog box: Choose partner



Dialog box: Selected partners

Select the partner.


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2-4 Real estate register:

Pushbutton: Real estate register

Maintain an entry for your object.


Area unit M2

No. For example, 3

Parcel For example, 23

Local subdistrict For example, Bethesda

Area For example, 800

Pushbutton: Sec. III

Maintain at least one encumbrance.


No. For example, 1

List of properties For example, 3

Rank For example, 1

Amount For example, 100,000

Currency UNI

Type of charge 2 (land charge)

Appr. entry For example, 08/17/95

Entry For example, 10/01/95

→ Save

Save the object and make a note of the number.

(C) SAP AG AC815 10-114

Unit: Complete Process Including Master Data Topic: Collateral value calculation

3 Check that the collateral object is complete:

→ Accounting

→ Treasury

→ Loans

→ Master Data

→ Objects

→ Change

Enter your object number. Alternatively, you can search for your object using the possible entries help.

In order to create a collateral value calculation, the object must be completely maintained. If you have not yet created your object, do this now.

4 Create a collateral value calculation:

→ Accounting

→ Treasury

→ Loans

→ Master Data

→ Objects

→ Collateral Value Calculation

→ Create

Enter your object number. Alternatively, you can search for your object using the possible entries help.

If you subsequently make changes to the object, these are not automatically included in the collateral value calculation. To include changes to the object in the collateral value calculation, you have to execute the calculation again, and for example, transfer the data from a valuation reference that you have previously created.

(C) SAP AG AC815 10-115


Currency UNI

Valuation type Prelim.valuat.

Valuation stat. Provisional

Leave all the other fields on this screen blank. The system makes entries in these fields automatically.

4-1 Calculate building value:

Pushbutton: Building value


→ Pushbutton: Parts of building

Building part 1 (SFH)


Price For example, 520

Depreciation For example, 12%





The basic data for calculating the building value was transferred from the master data for the building parts of the objects.

Pushbutton: Building value

Garages

(C) SAP AG AC815 10-116


Price For example, 40,000


External areas


Price For example, 20,000

Collateral markdown


Surcharge For example, 20%

4-2 Calculate the land value:

Pushbutton: Land value

Properties



Devel. For example, 20

The basic data for calculating the land value was transferred from the master data for the land register of the objects.

4-3 Calculate the revenue value:

Pushbutton: Revenue value


Pushbutton: Building parts revenue value Building part 1 (SFH)


Rent For example, 14

(C) SAP AG AC815 10-117




The basic data for calculating the building value was transferred from the master data for the building parts of the objects.

Pushbutton: Revenue value

Garages




Administrative costs (C/R) For example, 60/30

Interest rate (C/R) For example, 10/5

Remaining life (C/R) For example, 24/44

You can add more details about the composition of the administrative costs by selecting the corresponding function. In this case, entering blanket percentage rates has no effect.

4-4 Enter the remaining details for the collateral value calculation:

Pushbutton: Collateral value


ThPrtyExpOpin. For example, 700,000

Market value For example, 650,000

Selling value For example, 600,000

Proposal basis For example, 600,000

Via Additional data, you can define further data for the collateral value calculation (in particular, information about the expert). Via Assign expert, or Remove expert, you can assign or remove an expert for the collateral value calculation.

(C) SAP AG AC815 10-118

4-5 Fix a collateral value:

→ Collateral value

→ Fix


Fixing date For example, current date

Collateral value For example, 600,000

Rating base For example, contract

Once you have fixed the value, you can no longer change the collateral value calculation.

(C) SAP AG AC815 10-119

Unit: Complete Process Including Master Data Topic: Collateral and files

5 Create collateral:

→ Accounting

→ Treasury

→ Loans

→ Master Data

→ Collateral

→ Create

Select collateral type 2000 (endowment policy). Maintain the master data for the policy.

Each collateral type has a different entry screen.

5-1 Assign a partner:

Pushbutton: Partner

→ Environment

→ Partner

→ Create in role


or


→ Create in role


You can choose one of several roles. Select the role for the policyholder.

→ Dialog box: Select partner


(C) SAP AG AC815 10-120



Select the partner.


5-2 Enter the cash surrender value:

→ Pushbutton: Basic data

→ Pushbutton: Expiration data

→ Pushbutton: Insert item

Enter the cash surrender value of the policy for the current date.

5-3 Enter special arrangements:

→ Pushbutton: Basic data

→ Pushbutton: Special arrangements



Name Loan partner XX (neighboring group)


Select the partner.



Type of arrangement Private assignment to third party

Trust amount Variable according to repayment

→ Function key: F3

→ Dialog box: Change special arrangement

(C) SAP AG AC815 10-121

→ Yes

The overview for special arrangements appears.

→ Function key: F3

→ Save

Make a note of the collateral number.

6 Create a file:

→ Accounting

→ Treasury

→ Loans

→ Master data

→ Filed documents

Assign a file name of your choice.

→ Icon: Create

The basic data screen for the file appears.


Type of file 01 (Loan file)

Location of file For example, file cabinet

The date the file was created and the person it was created by are entered automatically. You cannot create documents for the file yet, since the file has not been assigned to the loan application yet.

(C) SAP AG AC815 10-122

Unit: Complete Process Including Master Data Topic: Interested party inquiry

7 Create an interested party inquiry:

→ Accounting

→ Treasury

→ Loans


→ Mortgage Loan

→ Interested Party

→ Create





Select the partner.



Company code TRXX

Requested capital 250,000 UNI

Product type 30A

Purpose of loan 03 (house building debt restructuring)

Acceptance type 02 (by telephone)

→ Save

(C) SAP AG AC815 10-123

Unit: Complete Process Including Master Data Topic: Application

8 Create an application:

→ Accounting

→ Treasury

→ Loans


→ Mortgage Loan

→ Application

→ Create


Company code TRXX

Product type 30A





Select the partner.



You can choose one of several roles. Select the role for the main borrower.

(C) SAP AG AC815 10-124

8-1 Maintain the loan master data:

→ Basic data


Loan type 005 (1A loan)

→ Basic data/Analysis data


Maturity 06 (Maturity > 10)

8-2 Assign the object:

→ Objects

→ Icon: Assign object

The Assign object icon is in the center of the screen.

→ Dialog box: Object search

You can search for the object using the object number, or other address or land register data.

→ Dialog box: Collateral object numbers

Select the object.

(C) SAP AG AC815 10-125

8-3 Display a collateral value proposal:

→ Icon: Display object

Select the object. The Display object icon is in the center of the screen. The collateral object is displayed.

→ Environment

→ Collateral values

The results of the collateral value calculation are displayed.

You can branch to the collateral value from the detail display of the collateral value calculation.

Go back to the screen Display Collateral Object.

Then select

→ Environment

→ Land register

→ Third party rights sec. III

The third party rights entered for the object are displayed.

8-4 Create an encumbrance:

→ Objects

→ Icon: Create encumbrance

Select the object. The Create encumbrance icon is in the center of the screen. The fields for entering an encumbrance are ready for input.

→ Objects/Encumbrances/Basic data


(C) SAP AG AC815 10-126

Collateral type Encumbrance

Type of charge Land charge

Vol./Cert. Right acc. to certificate

Amount 250,000 UNI

Section 3 For example, 2

Rank For example, 2

Property list For example, 3

The link between the application and the object/encumbrance on the database is only established when you save the application. Only then, for example, can you display the encumbrances entered for the contract in section III for the object.

8-5 Assign the collateral:

→ Collateral

→ Icon: Assign collateral

The Assign collateral icon is at the bottom of the screen.

→ Dialog box: Collateral search

You can search for the collateral using the internal number or other master data (for example, collateral type 2000).

→ Dialog box: Internal numbers

Select the collateral.


Assigned value For example, 2,500 UNI

Type of document Assignment

8-6 Insert a file:

(C) SAP AG AC815 10-127

→ Correspondence


File number Possible entries search

→ Dialog box: File search

You can search for the file using the file number or other master data.

→ Dialog box: File number

Select the file.

You can only define one file for each loan application, but one file can be defined for several loan applications.

The link between the application and the file on the database is only established when you save the application. Only then, for example, can you enter documents for the file.

→ Save application

8-7 Create documents:

→ Accounting

→ Treasury

→ Loans

→ Master Data

→ Filed Documents


File number Possible entries search

→ Dialog box: File search

(C) SAP AG AC815 10-128

You can search for the file using the file number or other master data.

→ Dialog box: File number

Select the file.

→ Icon: Change

→ Icon: Create documents

→ Dialog box: Contract number

Select the contract number for which you want to create documents.

→ Select documents to be created

Select the following documents: Loan application, current salary statements, and income tax assessment for the previous year.

→ Save

You can maintain the documents for the file in the application itself.

© SAP AG 1999

General information

Preparation activities

Conversion phase

Cleanup activities

Mass conversion

Customizing

Contents:

Contract Currency Changeover

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© SAP AG 1999

Convert loan contracts to the euro

Make the necessary Customizing settings for the changeover to the euro


Contract Currency Changeover: Unit Objectives

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© SAP AG 1999


Special cases

Disbursement

Course overview


Loan contract

Payments due

Closing operations

Rollover

Complete processincluding master data



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© SAP AG 1999

Several loans customers want to change their loans over to the euro.

Contract Currency Changeover: Business Scenario

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© SAP AG 1999

This section will give you an overview of:

Changeover options

Possible changeover scenarios

The local currency changeover for the loans area

The procedure for the contract currency changeover

Contract Currency Changeover: General Information

(C) SAP AG AC815 11-6

© SAP AG 1999

At the end of the dual-currency phase, all the loans must have been converted to the euro.

Dual currency phase (01/01/1999 - 12/31/2001)

Loan contract

1,000,000 UNI

Contract currency:Currency participating in EMU

Contract currency changeover

Loan contract

50,000 EUR

Contract currency:EUR

Changeover Options I

During the dual-currency phase, an agreement is made between the lender and the borrower to change over the loan contracts that are in a currency participating in the EMU.

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© SAP AG 1999

Changeover Options II

You can change over the contract currency (CCC)

before or after the local currency changeover (LCC)

The system supports the conversion of loans to the euro:

Individual processing Mass processing

- Loans given - Loans given- Loans taken - Loans taken

You always reset the contract currency changeover in the individual processing function

The functions for the contract currency changeover are the same for individual processing and mass processing. Since you cannot perform a test run, the changeover always takes place in the update run.

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© SAP AG 1999

Local currencyEMU currency EUR Other currency

Local currency(LC)

Case 1:CC = LC EUR

Example:UNI EURwhere LC = UNI

EMUForeign currency(FC)

Case 2:CC = FC EUR

Example:FRF EURwhere LC = UNI

Case 3:CC = FC EUR

Example:UNI EURwhere LC = EUR

Case 4:CC = FC EUR

Example:UNI EURwhere LC = GBPC

ontr

act c

urre

ncy

(CC

)

Other foreigncurrency (FC)

Case 1: Standard case before the local currency changeoverCase 3: Standard case after the fall local currency changeover

In the interim period, local currency loansare managed as foreign currency loans

Possible Changeover Scenarios

Case 1: Standard case: Loan in local currency; contract currency changeover (CCC) before the local currency changeover (LCC)

Case 2: Loan in a currency participating in the European Monetary Union (foreign currency); CCC before the LCC. You need to value foreign currency loans before you change over the contract currency.

Case 3: - Standard case: Loan in a currency participating in European Monetary Union (foreign

currency), originally a local currency loan, CCC after LCC. - Additional case: Loan in a currency participating in European Monetary Union (foreign

currency), originally a foreign currency loan, CCC after the LCC. You need to value foreign currency loans before you change over the contract currency.

Case 4: Only applies to customers outside the European Monetary Union that have loans in a participating currency.

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© SAP AG 1999

Dual-currency phase

1/1/1999 1/1/2000 1/1/2001

1/5/1999 3/15/2001

LC = CC LC ≠ CC LC = CC

CC = FC

UNI

EUR

EUR

UNI

LC

CC

UNI

6/30/2002

LC and CC = UNI before 01/01/1999LC changeover on 03/15/2001CC changeover on 01/05/1999

Case 1: CCC of LC Loans before LCC

Before the contract currency changeover (01/05/1999) from UNI to EUR, the loans are managed as local currency loans.

In the period between the contract currency changeover and the local currency changeover (01/05/1999 to 03/15/2001), the converted loans (as well as new euro loans) are managed as foreign currency loans.

After the local currency changeover (03/15/2001), the loans are managed as local currency loans again.

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© SAP AG 1999

Dual-currency phase

1/1/1999 1/1/2000 1/1/2001

10/12/1999 3/15/2001

LC ≠ CC LC = CC

CC = FC

UNI

EUR

EUR

FRFFRF

LC

CC

6/30/1998

LC ≠ CCLC = UNI / CC = FRF before 01/01/1999LC changeover on 03/15/2001CC changeover on 10/12/1999

Case 2: CCC of FC Loans before LCC

Before the contract currency changeover (10/12/1999) from UNI to EUR, the loans are managed as foreign currency loans.

In the period between the contract currency changeover and the local currency changeover (10/12/1999 to 03/15/2001), the loans are still managed as foreign currency loans.

After the local currency changeover (03/15/2001), all the euro loans are managed as local currency loans.

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© SAP AG 1999

LC and CC = UNI before 01/01/1999LC changeover on 04/18/1999CC changeover on 02/15/2001

Dual-currency phase

1/1/1999 1/1/2000 1/1/2001 6/30/2002

4/18/1999 2/15/2001

LC = CC LC ≠ CC LC = CC

CC = FC

UNI

EUR

EUR

UNI UNI

LC

CC

Case 3 (Standard): CCC of LC Loans after LCC

Before the local currency changeover (04/18/1999) from UNI to EUR, the loans are managed as local currency loans.

In the period between the local currency changeover and the contract currency changeover (04/18/1999 to 02/15/2001), the loans which were originally local currency loans are managed as foreign currency loans.

After the contract currency changeover (02/15/2001), the original local currency loans are changed back to local currency loans.

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© SAP AG 1999

Dual-currency phase

1/1/1999 1/1/2000 1/1/2001

4/18/1999 11/18/2000

LC ≠ CC LC = CC

CC = FC

UNI

EUR

EUR

FRFFRF

LC

CC

6/30/2002

LC ≠ CCLC = UNI / CC = FRF before 01/01/1999LC changeover on 04/18/1999CC changeover on 11/18/2000

Case 3 (Additional Case): CCC of FC Loans after LCC

Before the local currency changeover (04/18/1999) from UNI to EUR, the loans are managed as foreign currency loans.

In the period between the local currency changeover and the contract currency changeover (04/18/1999 to 11/18/2000), the loans are still managed as foreign currency loans.

After the contract currency changeover (11/18/2000), the loans which were originally foreign currency loans are managed as local currency loans. This only applies for foreign currencies participating in EMU.

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© SAP AG 1999

Converting a loan from a participating currency to the euro:Automatic conversion of all currency fields based on the contractcurrency that are used for financial mathematics (FIMA) and posting(currency amounts, currency keys, exchange rates):

Master data:Loan master data (contract data)Condition headers and condition itemsPayment splitting dataPayment advice data

Flow data:Documents in the subledger / cash flow:

Actual recordsNon-condition-based planned recordsCondition-based planned records (visible after plannedrecord update)

Drawings on disbursementsBorrower's note loan orders

CCC: Converting the Data

Contract currency: In the background, the system creates a new field for the original contract currency (this is used for the parallel currency display in correspondence).

Conditions: You convert reference interest rates manually as part of the cleanup. Process the following data manually: – Collateral – Objects – Encumbrances – Collateral value calculations – Credit standing calculations

Documents: – Documents in the loans subledger are converted. – FI documents are not converted; the FI document contains the amount originally posted

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© SAP AG 1999

Preparationactivities:

Accounting

Disclosecurrency reserves:

TR-TM-SE

- File management- Cancel summariztn

TR-LO

Effects on FI:TR-LO

Convert limits

Execute

Run currencyvaluationprogram

- Process files- Summarization

report program

ReconcileFI and TR-LO

Make settings

Startchangeover

Preparationactivity

CustomizingSettings:TR-TM-SE

Convertmanually

Conversion oflocal currency

yes

yes

yes

yes

yes

yes

no

no

no

no

no

no

Effects on FI:TR-TM-SE

yes

no

ReconcileFI and TR-TM-SE

Local Currency Changeover and Loans I

When you execute the local currency changeover, you must ensure that there are no loans in rollover files. You must process the files beforehand.

You must either invalidate or delete the summarization before the local currency changeover for all loans whose contract currency is not euro and for which summarized records were created.

The local currency amounts in FI and TR-LO are converted independently of each other. Since the local currency amounts are converted at different summarization levels (document in TR-LO / account transaction figures in FI), there may be differences when you compare TR-LO and FI that have arisen from rounding differences during the local currency changeover. You must reconcile the TR-LO and FI balances both b e f o r e and a f t e r the local currency changeover to check the consistency of the data. For more information, see the Treasury euro documentation.

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© SAP AG 1999

Adjustselection criteria:

TR-LOProcess

Local currencyconversion

Currency hedge

Cleanupactivities

Limit managementreport program

SEUVTBLV

Adjust data in CM Execute

End of changeover

no

no

yes

yes

Effects on FI:TR-TM-SE Process

yes

Effects on FI:TR-LO Process

no

yes

Local Currency Changeover and Loans II

You have already assigned the relevant selection criteria to all files and methods. After the local currency changeover (and after the contract currency changeover) you need to check the selection criteria and make any necessary changes. You do this using the corresponding functions in the Loans application menu.

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© SAP AG 1999

Startchangeover

CCC: Accounts Make settings in Customizing

Value foreigncurrency loans

Empty rolloverfile

Conversion of contract currency

Incomingpayment level

Convert master data

Convertflow data

Loansrolled over

Conv.borrower‘s note loans

Adjustmentflows

Currency swap:Open items

Currency swap:Loan position

Generalpreparation

activities

Preparation activities per loan

End of changeover

Cleanup activities


Currency swap:Disc./premium

Conversion log

Balancesheet transfer Other activities

Processsuspended data

Contract Currency Changeover (CCC):Process Flow

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This section will give you an overview of:

The general preparation activities:

- Prepare accounts for CCC postings- Value foreign currency loans- Make settings in Customizing

The preparation activities per loan contract:

- Process suspended data- Empty the rollover files

Contract Currency Changeover:Preparation Activities

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CCC:Accounts

Set up Customizing

ValueFC loans

Processsuspended

data

Emptyrollover file

Generalpreparation

activities

Preparationactivities per loan


Start ofchangeover

Preparation Activities: Overview

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ICCC:

Accounts

IIISet up

Customizing

IIValue

FC loans

Generalpreparation

activities

General Preparation Activities

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When you convert the contract currency, the system makes the following postings:

Currency swap postings for:

Loan positionAccruals/deferrals (premium/discount)Open items

Adjustment postings (for rounding differences):

Adjustments to capital amounts- Remaining capital- Disbursement commitment- Interest calculation capital

Balance adjustmentsfor incoming payment processing in the subledger

Contract Currency Changeover: Postings

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Activities:

1) Make sure that you can make postings to each balance sheet account in FI in both euros and the original currency.

(This is always the case if the currency of the balance sheet account is the local currency. You can use the validation function in FI to restrict the postings to certain currencies.)

2) Set up clearing accounts in FI for the CCC postings, such as:

- a clearing account for currency swap postings- a clearing account for the adjustments to capital amounts- a clearing account for the balance adjustments.

I) Contract Currency Changeover: Accounts

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PREREQUISITES

You must carry out a foreign currency valuation:

--> before the contract currency changeover for loans originally managed in a foreign currency that is also participating in EMU

PROCEDURE

Application level:

Loans ⇒Accounting⇒Valuation ⇒Foreign currency

II: Processing Foreign Currency Loans

If you do not value foreign currency loans before you change over the contract currency, problems arise when you carry on processing the loan. Before the start of the dual-currency phase, you must therefore perform a (one-time) foreign currency valuation for all loans in currencies participating in EMU (that differ from the local currency).

You must value all the relevant foreign currency loans using a one-step valuation principle that calculates the full valuation gain or loss.

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Define currencies to beconverted and the euro

Treasury Management ⇒Basic Functions ⇒Euro Currencies ⇒

Define Participating Currenciesfor Euro Changeover

Define currency code forthe euro

Global settings ⇒

Currencies

III: Customizing: Currencies

In the Loans area (TR-LO), you can only change over the contract currency for currencies defined as participating currencies in this table. You can only convert the contract currency to the currency that is defined as the target currency in Customizing. When it converts the contract currency, the system also checks whether the currency of the loan to be converted is defined in the translation table in Customizing and whether a fixed rate exists for the currency pair "currency to be converted - target currency".

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FTyp Name Flow Calc. Activitycateg. categ. ID

0910 Increase disb. commitm. euro EUA+ NOOP 07 0915 Reduce disb. commitm. euro EUA- NOOP 08 0920 Increase remaining capital euro EUR+ NOOP 07 0925 Reduce remaining capital euro EUR- NOOP 08 0930 Increase interest calc. capital euro EUZ+ AA 07 0935 Reduce interest calc. capital euro EUZ- SS 08 0940 Currency swap position inflow 2UBZ NOOP 07 0945 Currency swap position outflow 2UBA NOOP 08 0950 Currency swap discount outflow - - 08 0951 Currency swap premium outflow - - 07 0952 Currency swap discount inflow - - 07 0953 Currency swap premium inflow - - 08

.... 0980 Euro transfer 0110 debit EUUB NOOP 07 0981 Euro transfer 0110 credit EUUB NOOP 08

....

....

....

Example: Extract from the table of flow types

III: Define Flow Types for Adjustment Postings and Currency Swap Postings

Flow types for currency swap postings and adjustments to capital amounts: see above; Flow types for adjustments to balances: See the standard Customizing settings delivered with the system and Note 124254

In Customizing, choose Treasury Management / Loans / Transaction Management / Flow Types / Define Flow Types.

For the currency swap of the balance sheet position, you must define flows with the flow categories 2UBA and 2UBZ. During conversion, the system changes these flow categories to EUUB. (You need to make the settings in this way to enable the system to determine the flow types automatically. The flow categories are replaced to prevent the flows from being considered for evaluations.)

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Treasury ⇒

Treasury Management ⇒

Loans ⇒

Transaction Management ⇒

Condition Types ⇒

Define Condition Groups

Assign flow types to the application functions:

III: Currency Swap Postings for Loan Positions and Adjustments to Capital Amounts

For the contract currency changeover, assign the flow types 0910-9045 to application function 850. For the reset, assign the flow types 0945 and 0940 to application function 851. Application function 850: Contract currency changeover to the euro Application function 851: Reset contract currency changeover to the euro

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Make the following settings for currency swap postings for open items:

Define two flow types for the currency swap posting for each original flow type that generates an open item (such as debit positions, overpayments)

Assign the currency swap flow types to the original flow types as offsetting flows

See also:

- Currency swap postings for accrual/deferral (discount/premium)- Flow types for adjustments to balances

III: Currency Swap Posting: Open Items

For currency swap postings for accrual/deferral (discount/premium): See the standard Customizing settings delivered with the system and Note 111785

For flow types for adjustments to balances: See the standard Customizing settings delivered with the system and Note 124254

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Treasury ⇒

Treasury Management ⇒

Loans ⇒

Functions ⇒

Accounting ⇒

General Ledger Update ⇒

Define Account Determination

III: Account Determination for Flow Types

To ensure that the changeover to the euro is posted correctly, you must define account determination for all the additional flows.

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You can generate correspondence with a dual currency display. In this case, the amounts are shown in both the original currency or local currency and in euros.

To make use of this option, you must change the Customizing settings for correspondence accordingly.

III: Correspondence

The Customizing settings delivered with the system contain a sample document AUSZ.ANZSCH_DUAL (Disbursement notification: Dual currency) as an example of a disbursement letter with a parallel currency display.

The function module EMUL_ALTERNATE_CURR_FOR_SCRIPT is used for currency translation in correspondence.

If you want to use the parallel currency display in correspondence, you must change your settings in Customizing for correspondence to match the above sample document.

The remaining capital at the time of the CCC is saved in the field VDARL_EU-BREMAINCAP. You can use this value in the correspondence if you want to disclose to the borrower the remaining capital in the original currency when you convert the contract currency.

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IProcess

suspendeddata

IIEmptyrollover

file

Preparationactivitiesper loan

Preparation Activities per Loan

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PROCEDURE

Before you convert each loan (individual processing), release any suspended data

I: Process Suspended Data

Data is suspended when the release function is set to active and master data or flow records relating to a loan are in release status.

If suspended data still exists when you run the conversion, the system automatically writes an error message to the conversion log, indicating that the loan in question was not converted.

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PREREQUISITES

There are loans in the rollover file

These loans cannot be changed over to the euro

PROCEDURE

Loans ⇒

Portfolio ⇒

Rollover ⇒

File Processing ⇒

General File ⇒

Display / Edit ⇒

II: Empty Rollover File

When you perform the contract currency changeover, you must ensure that none of the loans to be converted are in a rollover file. If necessary, remove these loans from the rollover process.

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This section will give you an overview of the conversion process:

Conversion procedureCheck the incoming payment levelConvert master dataConvert flow dataConvert borrower's note ordersLoans rolled overGenerate and post adjustment flowsCurrency swap posting for loan positionCurrency swap posting for open itemsCurrency swap posting for premium/discountBalance adjustments Reset

Contract Currency Changeover:Conversion Phase

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Conversion of contract currency

Incomingpayment

level

Convertmaster

data

Convertflowdata

Loansrolled over

Convertborrower‘snote orders

Adjustmentflows

Currencyswap:

Open items

Currencyswap:

Position

Currencyswap:

Prem./disc.

Contract Currency Changeover: Conversion Procedure

! For performance reasons, the number of open items to be converted should be reduced to a minimum !

We also recommend that you change over your loans successively, rather than changing them all over at the end of the dual-currency phase.

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ProcedureLoans ⇒

Portfolio ⇒

Contract Currency Changeover to the Euro ⇒

Currency Changeover

Selection criteria

Control parameters for online conversion

Control parameters for conversionusing process management

Company codeLoan number

Posting date

Planned record updatex

Put loan into file

CCC: Start Conversion for Individual Loans

During the dual-currency phase, we distinguish between individual loan processing and mass loan processing. Call up the individual processing function as shown above. You use the process management function for mass loan processing. When you call up the individual changeover function, you can put a loan into a file and process it later using the mass processing function.

The system performs a contract currency changeover according to the settings you have made in Customizing: Define Participating Currencies for Euro Changeover.

Cash Management is updated automatically when you run a planned record update. You can choose whether to have the planned records updated automatically when the contract currency is converted. If you run the conversion program without the automatic planned record update, the system updates the Cash Management records when you carry out the next planned record update.

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Loans Finance project IP distrib. level (in basic data)

10000001 Project1 Finance project variant


10000003 Project1 Contract variant


10000005 Project1 Customer variant

Check Incoming Payment Distribution Level

In order to be able to clear the overpayments for an incoming payment distribution level automatically, the system requires all the loans for an incoming payment distribution level to be in the same currency. This means that all the loans in a given incoming payment distribution level need to be changed over at the same time.

Example: You want to convert loan 10000002. The system runs the check and recognizes that loan 10000001 also belongs to the IP distribution level Finance project level in finance project Project1. The system displays the relevant loans and – after confirmation by the user – converts these loans as well. In this case: The system also converts loan 10000001. Otherwise, neither of the loans are converted.

Note: If you still want to convert an individual loan, choose Change contract and change the IP distribution level to Contract variant. After the changeover, you can only assign the loan to the original IP distribution level when all the other loans in the level have been converted.

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The following master data is converted automatically:(currency key, amounts in contract currency)

Loan master data

Condition headers

Condition items

Payment splitting data

Payment advice data

If the account assignment reference has been defined as currency-dependent, the system sets a flag for the balance sheet transfer when the currency is changed to the euro.

Conversion of Master Data

The system determines the account assignment reference automatically on the basis of the settings in Customizing: Treasury / Treasury Management / Loans/ Functions / Accounting / General Ledger Update / Control Automatic Determination of Account Assignment Ref.

As part of the cleanup process you must carry out the balance sheet transfer flagged during the conversion run.

We recommend that you set up the system so that it does not use the currency as a basis for determining the account assignment reference automatically. Otherwise you may experience performance problems particularly when converting the contract currency.

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The following flow data is converted(for example, currency keys, amounts in contract currency, exchange rates)

Document items / Cash flow:

All actual records

Planned records not based on conditions are translated

Planned records based on conditions are deleted in the original currency and regenerated using the conditions that have been converted to euros (they are visible in the cash flow when you carry out a planned record update)

Drawings on disbursements

Conversion of Flow Data

The system converts a loan as at a specified key date, taking into account any translation or rounding differences. The contract number stays the same. Note: Amounts in local currency are not converted during the contract currency changeover.

During the conversion run, condition-based planned records are converted to the euro. After the planned record update, you can see the newly-calculated amounts in the cash flow. This planned record update can be triggered in two ways: When you run the contract currency changeover by setting the Planned record update indicator when you run the conversion program

or After the contract currency changeover by calling up the planned record update function (choose Portfolio / Periodic Processing / Update Planned Records) You need to do this at the latest before the next debit position run!

This applies for individual processing and mass processing.

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Borrower's note loan orders are converted in the

same way as the flow data

BNL

Conversion of Borrower's Note Orders

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If loans have been rolled over, the system adjusts the commitment capital in euros.

Loans Rolled Over

The commitment capital for the rollover is calculated on the basis of the cash flow for the existing commitment capital and other amounts.

When the contract currency is converted, the system calculates the commitment capital (for the last rollover) in the same way as it was calculated originally, but this time on the basis of the cash flow in euros. As a result, there are no rounding differences.

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UNI / EUR exchange rate: 1.95583

UNI EUR

Disbursement 100,000.00 51,129.19 Repayment 50,000.00 - 25,564.59-Remaining capital (calculated from flows) 50,000.00 25,564.60Remaining capital (translated directly) 50,000.00 25,564.59Rounding difference 0.01 -

Capital amount field

CCC: Example

CCC: Example of differences for capital amounts: The system makes the following calculations:

- The capital amounts are calculated on the basis of the cash flow in the original currency: Remaining capital (from flows): 50,000 UNI

- The capital amounts in the original currency are translated into euros using the fixed rate (direct currency translation). Remaining capital (direct translation): 25,564.59 EUR

- The cash flow is translated from the original currency into euros record by record. - The capital amounts are calculated on the basis of the cash flow in euros:

Remaining capital (from flows): 25,564.60 EUR - Calculation of the rounding difference: 0.01 EUR

Relevant capital amount: Remaining capital translated into euros (directly): 25,564.59 EUR

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Remaining capital50,000.00 UNI (before conversion on the basis of the cash flow for the loan)

25,564.60 EUR (after conversion on the basis of the cash flow in Loans, without adjustments)

25,564.59 EUR (calculated by translating the original amount at the fixed exchange rate)

Rate EUR/UNI1.95583

There is a difference of 0.01 EUR, in other words, the remaining capital after conversion is too high by 0.01 EUR. This difference is taken off the books.

Bal. sheet account Clearing account for currency swap

50,000.00 UNI 50,000.00 UNI 50,000.00 UNI 25,564.60 EUR

25,564.60 EUR 0.01 EUR

25,564.59 EUR Starting basis: Position in UNI

Currency swap outflow

Clearing account for capital adjustment Currency swap inflow (LC balance = 0) Adjustment posting for remaining capital

0.01 EUR Position in EUR after conversion (balance view!)

Currency Swap Posting: Loan Position

Prerequisite: For currency swap postings (for loan positions, open items and discounts/premiums) you must be able to make postings to the clearing account for the currency swap (and other relevant accounts) in both euros and the original currency.

Procedure: The system performs a currency swap posting for the proportional loan balance in the balance sheet account in FI.

The system determines the remaining capital in the original currency via the cash flow and posts this amount from the balance sheet account to a clearing account for currency swap postings.

The system determines the remaining capital in euros on the basis of the euro cash flow, and posts this value back to the balance sheet account.

Note: Since you cannot post a local currency amount of zero in FI, the adjustment comprises two postings for technical reasons. In the first posting, the position is posted to a clearing account. In the second posting, the local currency amount is taken off the clearing account, since only the contract currency needs to be adjusted. Example: Aim: Post 0.01 EUR = 0.00 UNI (LC) Postings: 1. 0.01 EUR = 0.02 UNI (clearing account to balance sheet account); 2. 0.00 EUR.= 0.02 UNI (balance sheet account to clearing account).

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When capital amounts are converted (interest calculation capital, disbursement commitment, remaining capital), the system adjusts for any rounding differences

Adjustment amounts resulting from adjustment postings for the interest calculation capital and disbursement commitment are only posted in the loans subledger, and not in FI. You must set up account determination for the relevant flow types (0910, 0915, 0930, 0935):

Clearing account for adjustments to capital amounts to clearing account for adjustments to capital amounts

Adjustment amounts for adjustment postings for the remaining capital are posted in FI. Account determination for flow types 0920 and 0925:

Balance sheet account to clearing account andClearing account to balance sheet account

Generating and Posting Adjustment Flows

When the system converts and adjusts the capital amounts, it takes all the actual records that exist when you run the conversion into account (if there is a disbursement commitment, planned disbursements are also considered). The remaining capital is adjusted to reflect business practice, while the interest calculation capital and disbursement commitment are adjusted for technical reasons.

Rounding differences can affect interest calculation. To clear the rounding differences, the system performs a one-off adjustment of the interest calculation capital on the conversion key date.

If the loan was fully disbursed before conversion, the system generates an adjustment flow (where necessary). This adjustment flow clears any rounding differences and sets the balance for the disbursement obligation back to zero.

The system also adjusts the remaining capital amount disclosed to the borrower. The system adjusts any differences arising from the conversion automatically and transfers the corresponding postings to FI.

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Post.dte Text Subledger FI01/31 Interest debit pos. 100.00 UNI 100.00 UNI

02/15 Outflow due to euro 100.00 UNI(51.34 EUR)

100.00 UNI

02/15 Post open items ineuros

51.34 EUR 51.34 EUR With a reference tothe debit positionitem

Debit position generated on 01/31 in UNI

Contract currency changeover to the euro on 02/15

Currency Swap Posting: Open Items

The open items resulting from the converted loan can be arrears from debit positions or overpayments. These open items are converted during the contract currency conversion run by means of a currency swap posting.

The original amount is taken off the subledger account, translated into EUR using the fixed exchange rate, and then posted back to the subledger account in EUR.

No adjustment flow is necessary.

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The proportionate premium/discount on the FI account is translated from the original currency into euros by means of a currency swap posting

The system determines the remaining premium/discount on the basis of the cash flow in the original currency and posts this amount from the accrual/deferral account to a currency swap account (outflow)

At the same time, it calculates the remaining premium/discount on the basis of the cash flow in euros and posts this amount from the currency swap account back to the accrual/deferral account (inflow)

Currency Swap Posting: Premium/Discount

Currency swap postings are only generated automatically during the conversion run for flow types with flow category "TA" and calculation category "TA". These flows must be flagged as relevant for accrual/deferral. Flow types with accrual/deferral method "0: None or manual" are not considered.

No adjustment flow is necessary.

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Currency swap postings are made using a currency swap account. For each posting, the balance in local currency is zero.

Balance sheet account for loan positionThe proportionate position is taken off the FI balance sheet account in the original currency and posted back in euros.Where necessary, a capital adjustment (for the remaining capital) is made.

Customer accounts for open itemsAn open item is taken off the account in the original currency and posted back in euros.

Accrual/deferral accountsThe portion of the discount/premium that has not yet been written back is taken off the accrual/deferral account in original currency and posted back in euros.

Currency Swap Postings

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Adjustments for rounding differences:Adjustments to capital amounts

Remaining capital (planned capital / effective capital)Disbursement commitmentInterest calculation capital

Balance adjustmentsfor incoming payment processing in the subledger

Document-based balance adjustmentsAccount-based balance adjustments

Adjustments Made During Conversion

Document-based balance adjustments are adjustments that can be attributed to a single item. They are only carried out for loans that are managed on the basis of customer accounts.

Account-based balance adjustments cannot be attributed to a single item. They are carried out for loans that are managed on the basis of customer accounts as well as for those that are not.

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Reasons:Without balance adjustments, you cannot reconcile the loans subledger and the FI general ledgerUnadjusted balances may result in processing errors if you reverse flows posted before the changeoverThe balance disclosed in the account statement is incorrect

Solution:The system generates balance adjustment flows during the contract currency conversionDocument-based balance adjustments, provided that they can be calculated on the basis of referencesAccount-based balance adjustments(only for balance display in account statement)

Balance Adjustments I

Reconciliation: In the subledger, incoming payments are cleared using the instalment payment procedure. In FI customer accounts, they are cleared using the residual balance procedure. As a result of the different procedures, there may be rounding differences after the contract currency changeover (see the example on the next slide).

Document-based balance adjustments: The system makes document-based balance adjustments for original flows (debit positions, overpayments) if the chain of clearing postings can be tracked using references. The system first tracks the chain of postings using invoice references. If there are no invoice references, the system uses the incoming payment document (RZEBEL) and the account (RSOLL/RHABEN) to track the chain. In this case, residual items are also included. If the balance within a chain is zero in the original currency, the chain is regarded as complete. A document-based balance adjustment is entered as an additional item in the document of the original flow. If adjustments were calculated using an invoice reference, the reference flow type is the same as the flow type for the original flow. Otherwise, the reference flow type is the same as the flow type for the balance adjustment. Balance adjustments can only occur if more than one flow is used to clear the original flow.

Account-based balance adjustments: If document-based balance adjustments cannot be calculated because references are missing or incorrect, the corresponding flows are considered in the account-based balance adjustment. Account-based balance adjustments are only posted in the subledger.

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Before conversion After conversionwith adjustment

Flow Doc. Pos. Debit Credit Debit Credit

Interest debit pos. 0001 1 20.00 UNI 10.53 EURBal. adjustment 0001 2 0.01 EURIP interest 0002 1 10.00 UNI 5.26 EURIP interest 0003 1 10.00 UNI 5.26 EUR

Balance 0.00 UNI 0.00 EUR

Example of a document-based balance adjustment:(Exchange rate 1.90 UNI / EUR)

Balance Adjustments II

Without the balance adjustment, there is a balance of 0.01 EUR in the subledger. In this case, the borrower would have to pay 0.01 EUR (assuming that the subledger shows receivables due from the borrower). The customer account, on the other hand, is still cleared. There is no corresponding open item.

The document-based balance adjustment clears the receivable item by adjusting the amount of the original flow.

The balance adjustments are only recorded in the subledger. They are not posted in FI. If the original flows are reversed (interest debit position), there is an overpayment of 2 x 5.26 EUR, which fully clears the receivable. Without a balance adjustment there would be a residual receivable item of 0.01 EUR that would need to be processed manually. The balance adjustment fully clears the receivable item. If an adjustment is used in a reversal posting, it is also posted in FI.

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ProcedureLoans ⇒

Portfolio ⇒

Contract Currency Changeover to the Euro ⇒

Reset Currency Changeover

Selection criteria

Control parameters

Resetting the euro contract currency changeover:

Company code

Loan number

Posting date

Reason for reversal

Planned record update

Reset contract currency changeover to the euroReset contract currency changeover to the euro

Resetting the Contract Currency Changeover

The reset function reverses the contract currency changeover. During the changeover, all the relevant loan data is saved to backup tables. If the changeover is reset, the system uses the data from these backup tables.

You can only reset the changeover if no postings* have been made since the changeover. If postings have been made, you must reverse them first. *or only reversed postings

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1. Before you reset the changeover, you must reverse any postings made since the changeover.

2. The reset function reverts to the original data.

3. Any postings made since the changeover and reversed before the reset are translated automatically. If necessary, enter the postings again during the cleanup.

The reset function is only intended for reversing the contract currency changeover.

Reset Changeover: Procedure

1. You must reverse any postings made after the contract currency changeover. 2. The reset function uses the original data from the backup tables, except for payment splitting data and payment advice data. You may need to postprocess this data manually, in which case there will be a corresponding note in the changeover log. 3. The system automatically converts the flows that were reversed for the reset and the corresponding reversal flows from euros into the original currency. Any flows in euros that you reverse before the reset must be posted back in the original currency after the reset.

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This section will give you an overview of how to:

Check the conversion log

Postprocess the balance sheet transfer

Perform other cleanup activities

Contract Currency Changeover:Cleanup Activities

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Conversionlog

Balancesheet

transfer

Endof

changeover

Cleanup activities

Otheractivities

Cleanup Activities

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During the conversion run the system automatically generates a log

The log appears when conversion of the individual loan is complete

You can still view the log later on using transaction SLG1 and object FTLE

Check Conversion Log

If errors occur during the conversion run, the loan is not converted. The following information is recorded in the conversion log:

If the contract currency was converted: – Whether a flag was set for the balance sheet transfer – Whether reference interest rates need to be processed manually

Whether an error has occurred: In this case, the loan has not been converted and is highlighted in red in the log.

If you select an item in the list and choose Display message, the system displays a list of the steps in the conversion procedure. If an error occurred during the changeover, the corresponding place in the list is highlighted in red. If you select an item in this detail list and choose Long text, the system displays more detailed documentation. If you choose Back or Exit, you can call the log up again using the above transaction.

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Conversion:

- The system generates a flag for the balance sheet transfer- The flag is displayed in the conversion log

Cleanup: Trigger balance sheet transfer:

Procedure:

In the Loans application menu, choose ⇒ Balance sheet transfer and enter your values in the initial screen.

If you have set up the system to determine the account assignment reference automatically on the basis of the currency, the contract currency changeover to the euro may result in a change to the account assignment reference.

Cleanup: Balance Sheet Transfer

After you have run the conversion program, you must trigger the balance sheet transfer that was flagged. You can trigger the transfers individually or as a batch job.

The balance sheet transfer has the following effect: For loans that have not yet been posted: – The system changes the account assignment reference in the contract data

For loans that have been posted: – The system changes the account assignment reference in the contract data and – Carries out a transfer posting between the corresponding balance sheet accounts in FI.

If currency swap postings were made for the position during the CCC, a balance sheet posting that is flagged cannot be made if the posting date is before or the same as the posting date of the CCC.

See also: Note 126102

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You must process reference interest rates manually

The following are not converted automatically:

- Collateral- Objects- Encumbrances- Collateral value calculations- Credit standing calculations, etc.

Check the selection criteria of the files

Foreign currency loans

Other Cleanup Activities

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If your selection criteria for files used for rollovers / process management include

- amounts

and / or

- currencies

you must check these criteria after the conversion and make any necessary changes:

Procedure:

Rollover or Process management ...

Other Cleanup Activities: Selection Criteria for Files

Rollover examples: Selection criteria before conversion: Contract currency and local currency = UNI All loans for which the remaining capital is > 50,000 UNI are in file 1.

Selection criteria after conversion: Contract currency = EUR Actual situation: All loans with remaining capital > 50,000 (UNI) are in file 1. Desired situation: All loans with remaining capital > 25,000 (EUR) are in file 1.

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Extract of the cash flow of a euro loan:

Other Cleanup Activities: Euro Foreign Currency Loans

(Local currency)...08/01/2001 95.88 UNI Interest debit pos. 08/01/2001 32.04 UNI Annuit.repaym. D 09/01/2001 95.70 UNI Interest debit pos. 09/01/2001 32.22 UNI Annuit.repaym. D 10/01/2001 95.53 UNI Interest debit pos. 10/01/2001 32.39 UNI Annuit.repaym. D 11/01/2001 95.37 UNI Interest debit pos. 11/01/2001 32.55 UNI Annuit.repaym. D 12/01/2001 95.20 UNI Interest debit pos. 12/01/2001 32.72 UNI Annuit.repaym. D 12/01/2001 0.01 UNI Exchange rate loss01/01/2002 95.02 UNI Interest debit pos. 01/01/2002 32.90 UNI Annuit.repaym. D 02/01/2002 94.85 UNI Interest debit pos. 02/01/2002 33.08 UNI Annuit.repaym. D...

(Contract currency)...08/01/2001 49.28 EUR Interest debit pos. 08/01/2001 16.47 EUR Annuit.repaym. D09/01/2001 49.19 EUR Interest debit pos. 09/01/2001 16.56 EUR Annuit.repaym. D10/01/2001 49.10 EUR Interest debit pos. 10/01/2001 16.65 EUR Annuit.repaym. D11/01/2001 49.02 EUR Interest debit pos. 11/01/2001 16.73 EUR Annuit.repaym. D12/01/2001 48.93 EUR Interest debit pos. 12/01/2001 16.82 EUR Annuit.repaym. D12/01/2001 0.00 EUR Exchange rate loss01/01/2002 48.84 EUR Interest debit pos. 01/01/2002 16.91 EUR Annuit.repaym. D02/01/2002 48.75 EUR Interest debit pos. 02/01/2002 17.00 EUR Annuit.repaym. D...

In the case of foreign currency loans, changes in exchange rates result in exchange rate gains or losses. In the case of euro loans, the exchange rates are fixed. Despite the fixed rate, rate gains and losses can arise from rounding differences.

Examples of rate gains or losses from rounding differences: (LC = Local currency) LC UNI, new loan is granted in EUR LC UNI, existing loan in UNI converted to EUR LC EUR, existing loan in "old" local currency UNI

The system uses the existing algorithm with fixed rates to display gains and losses resulting from rounding differences in the cash flow.

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Define flow types for rate gains/losses

Assign the flow types to flow categories:(You make the assignment for the condition group)

Category XF: Recalculate capital amounts during contract currency conversion

Set up account determination

If, as a result of the contract currency changeover, you have foreign currency loans for the first time, you must make the following settings in Customizing:

Other Cleanup Activities: Foreign Currency Loans- Customizing

If you already have foreign currency loans, you can use the existing Customizing settings for foreign currency loans.

Even if no foreign currency loans have been granted so far, some loans may be treated as foreign currency loans in the context of the euro changeover. When the local currency is changed over to the euro, loans that were originally local currency loans become foreign currency loans.

When the contract currency is changed over to the euro, loans that were originally local currency loans become foreign currency loans.

If new loans are granted in euros before the local currency changeover, these are treated as foreign currency loans (until the local currency changeover).

In all of these cases, you must define flow types for rate gains and losses, assign them to the above flow category and make the settings for account determination.

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At the end of the dual-currency phase, make sure that all the loans have been changed over to the euro

You can select all the loans that have not yet been changed over in process management

For more information about the contract currency changeover, see:

- The documentation

- Note 124254

Other Cleanup Activities: General Note

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© SAP AG 1999

Loan contract

1,000,000 UNI

Contract currency changeover

Loan contract

1,000,000 UNI

Loan contract

1,000,000 UNI

Loan contract

1,000,000 UNI

Loan contract

Loan contract

1,000,000 UNI

Loan contract

1,000,000 UNI

Loan contract

1,000,000 UNI

Loan contract

1,000,000 UNI

Loan contract

500,000 EUR

Process management

4 Logs

+

Update files, if required

CCC: Mass Processing

1,000,000 UNI

You can use Process Management to carry out the mass processing of contract currency changeover. After mass processing the system issues the following four logs: 1. Process management log 2. Contract currency changeover log 3. Posting log for the generated postings 4. Error log for incorrect postings

Loans containing errors are not converted. The system puts these in a suspension register. After the contract currency changeover the system does not update the capital amounts for the loans in the folder but continues to display them in the original currency. This is for system performance reasons. If the file is updated, you can see the capital amounts in euros on the detail screens.

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I. Customizing for the changeover to the euro

II. Additional Customizing settings for process management

1. Define activity type: E

2. Define logical fields (such as the contract currency field)

3. Define the register (incl. the exclusion register)

4. Define report program functions- EUR EUR_Contract currency changeover- POFU Fill files- If correspondence is required:

ADDR Notification of CCC to the euro

5. Assign functions to the register

6. If correspondence is required:Correspondence settings in Customizing:- Assign function code ADDR to correspondence activities- ...

7. Installation parameters: Set format to X_65_132

CCC: Mass Processing - Customizing

You can use the following as the register: 1. Not processed 2. EUR-CCC Carried out 3. EUR-CCC Correspondence generated 4. Excluded

The report functions have the following function calls: POFU fill file: RFVDPSF1 EUR CCC: RFVDEMU3 ADDR notification: RFVDPF01

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Convert loan contracts to the euro

Make the required Customizing settings for the changeover to the euro


Contract Currency Changeover: Unit Summary

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Exercises

Unit: Contract Currency Changeover to the Euro


• Change the contract currency of a loan

Your company has granted a loan to a customer. As a result of monetary union, the customer wants to change his loan to the Euro.

1 Create a mortgage loan with currency UNI in your company code, TRXX.

1-1 Enter the general data for the contract and define the conditions. Save your loan and make a note of the loan number.

1-2 Disburse the loan contract. Execute the disbursement without simulating the posting.

1-3 Carry out a debit position run for the first two due dates.

1-4 After the disbursement and debit position run, run the payment program for your customer.

2 Convert the contract currency of your loan to the Euro. You want to update the planned records directly. Look at the log. Which data was converted?

2-1 Return to your loan and look at the changes resulting from the conversion.

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Solutions

Unit: Contract Currency Changeover to the Euro

1 Create a mortgage loan:

→ Accounting

→ Treasury

→ Loans


→ Mortgage Loan

→ Contract

→ Create

1-1 Create a loan:


Company code TRXX

Product type 30A (mortgage loan)

→ Enter





Select the partner.


You can choose one of several roles. Select the role for the main borrower.

Tab: Basic Data


Loan type 005 (1A loan)

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Tab: Basic data/Analysis data


Maturity 6 (maturity > 10)

Tab: Conditions/Basic data


Commitment capital 100,000 UNI

Repayment type Annuity

Fixed from 01/01/2000

Fixed until 01/01/2000

Interest condition


Effective from 01/01/2000

Percent 6%

Frq 3

Due on 03/31/2000

Calc. date 03/31/2000

Annuity repayment condition


Effective from 01/01/2000

Percent 2%

IS x

Frq 3

Due on 03/31/2000

Calc. date 03/31/2000

Pushbutton: Partner

Maintain the entries for the main borrower and note the number of your customer.


BnkT 0001

Payment method E

→ Save

In the dialog boxes that appear, select the settings for the partner.

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1-2 Disburse the loan:

Carry out the disbursement as described in the previous units.

1-3 Carry out the debit position run:

Carry out the disbursement as described in the previous units.

1-4 Run the payment program:

→ Accounting

→ Treasury

→ Loans

→ Accounting

→ Generate payments

→ Open items


Execution date 06/30/2000

ID TRXX

Tab: Parameters


Customer items due by 06/30/2000

Company codes TRXX

Payment methods 2E

Next posting date 09/30/2000

Customer Your customer number

→ Save

→ Status

→ Pushbutton: Proposal

→ Dialog box: Schedule proposal


Start immediately x

→ Enter

Continue selecting Enter until the payment proposal has been created.

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→ Pushbutton: Payment run

→ Dialog box: Schedule payment run


Start immediately x

→ Enter

Continue selecting Enter until the payment has been created.

Pushbutton: Payment log

Check whether the payments have been posted.

If no payments were created, speak to the course instructor.

2 Run the payment program:

→ Accounting

→ Treasury

→ Loans

→ Portfolio

→ Contract currency changeover to EURO

→ Currency changeover


Company code TRXX

Loan number Your loan number

Posting date 07/01/2000

Planned record update x

After the changeover, check the Currency change and adjustment flows posted log by doubleclicking Ltxt.

In a second session, display the contract that you have changed over, paying particular attention to the cash flow. Check that the log is correct.

AC815 - Loans Management

Documents

course objectives

ac815 loans management

sap treasury

course goals

course overview diagram

course prerequisites

course content

main business scenario