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AC815 Loans Management

AC815
Loans Management
for Financial Services
SAP AG 1999
SAP AG

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

Copyright

Copyright 2000 SAP AG. All rights reserved.


Neither this training manual nor any part thereof may
be copied or reproduced in any form or by any means,
or translated into another language, without the prior
consent of SAP AG. The information contained in this
document is subject to change and supplement without prior
notice.
All rights reserved.

SAP AG 1999

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Treasury
Level 2

Level 3
AC815
5 days
Loans Management for
Financial Services

AC030

3 days

Treasury Overview

AC810
3 days
Basic Functions in
Treasury Management

AC816
3 days
Loans Management for
Corporates
AC820

4 days

Securities Management
AC825
3 days
Money Market, Foreign
Exchange and Derivatives
AC830

3 days

Market Risk Management


AC805
AC010

5 days

Financial Accounting
and Reporting

SAP AG 1999

3 days

Cash Management
AC215
Cash Budget
Management

1 day

Course Prerequisites

AC030 - Overview of Treasury


AC810 - Basic Functions in Treasury Management
AC010 - Financial Accounting and Reporting

SAP AG 1999

Target Group

Audience:
Project manager
Project team
Duration: 5 days

SAP AG 1999

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.

Course Overview

Contents:
z Course goals
z Course objectives
z Course content
z Course overview diagram
z Main business scenario

SAP AG 1999

SAP AG

AC815

1-1

Course Goals

This course will prepare you to:


z Use the functions for loans given and make the

corresponding Customizing settings


z Outline typical processes for loans given,

including the transfer to Financial Accounting and


integration with Cash Management

SAP AG 1999

SAP AG

AC815

1-2

Course Objectives

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


z Carry out all the steps in the loan process and

make the corresponding system settings

SAP AG 1999

SAP AG

AC815

1-3

Course Content

Preface
Unit 1

Course Overview

Unit 7

Closing Operations

Unit 2

Loans Management
within SAP Treasury

Unit 8

Special Cases

Unit 3

Process Flow for


Loans Given

Unit 9

Rollover

Unit 10

Unit 4

Loan Contract

Complete Process
Including Master Data

Unit 5

Disbursement

Unit 11

Contract Currency
Changeover

Unit 6

Payments Due

SAP AG 1999

SAP AG

AC815

1-4

Course Overview Diagram

Loans Management
within SAP Treasury
Course overview

Process flow for


loans given
Loan contract
Disbursement
Payments due

Contract currency
changeover

Closing operations

Complete process
including master data

Special cases
Rollover

SAP AG 1999

SAP AG

AC815

1-5

Main Business Scenario

z 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

SAP AG

AC815

1-6

Loans Management Within SAP Treasury

Contents:
Overview of SAP R/3-Treasury
Role of Loans Management
Loan Forms Supported
Process Flow for Loans Given
Interface with Financial Accounting
Datafeed Link

SAP AG 1999

SAP AG

AC815

2-1

Loans Management Within SAP Treasury:


Unit Objectives

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


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

SAP AG 1999

SAP AG

AC815

2-2

Course Overview Diagram

Loans Management
within SAP Treasury
Course overview

Process flow for


loans given
Loan contract
Disbursement
Payments due

Contract currency
changeover

Closing operations
Special cases

Complete process
including master data
Rollover
SAP AG 1999

SAP AG

AC815

2-3

Loans Management within SAP Treasury: Business


Scenario

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?

SAP AG 1999

SAP AG

AC815

2-4

SAP Treasury
Download

MRM

Market Risk Management


Interest/Currency exposure
Mark-to-Market
Risk analysis/Simulation
Value at Risk

TM/LO

Treasury Management/
Loans management
Management of financial
transactions and positions
Transfer to Financial
Accounting
Flexible reporting
Datafeed interface

Market data
US$
UNI

Business
partner

Derivatives
Loans
Securities
Money Mkt
Forex

Bank data

CM

Financial Accounting
Logistics

D
100

Cash Management:
Electronic banking
Liquidity status
Integrated operational
systems
Control functions

C
100

SAP AG 1999

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

AC815

2-5

Selection of Financial Instruments


Product Types
Investment/borrowing
instruments:

Money market
Fixed-term
deposits
Deposits at
notice
Commercial
Paper

Securities
Stocks
Subscription
rights
Investment
certificates
Bonds
Convertible
bonds
Warrant bonds
Warrants

Hedging instruments

Loans

Forex

Derivatives

Mortgage
loans
Borrower's
note loans
Policy loans
Other loans

Forex spot
deals
Forward
exchange
deals
Forex
swaps

Cap / Floor
FRA
Swaps
- Interest rate
- Cross currency
interest rate
OTC options
- Currency
- Interest
- Securities
- Swaption
Futures

SAP AG 1999

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

AC815

2-6

Short-Term Financial Instruments


TR-TM

Money market
instruments:

TR-TM

Forex
instruments:
- Spot transactions
- Fwd transactions
- Forex swaps

Liquidity position

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

Planning horizon

Surplus

Deficit

Short-term

Long-term

Investment
Money market
Forex

Investment
Securities
Loans

Borrowing
Money market
Forex

Borrowing
Loans

SAP AG 1999

SAP AG

AC815

2-7

Medium - Long Term Financial Instruments

TR-TM

Planning horizon

Liquidity position

Short-term

Surplus

Investment
Money market
Forex

Securities:
Long-term

- Stocks
- Bonds
- ...

Investment
Securities
Loans

TR-TM

Loans:
Deficit

Borrowing
Borrowing
Money market
Forex

Borrowing
Loans

- Mortgage loan
- Borrower's note
loan
- Policy loan
- ...

SAP AG 1999

SAP AG

AC815

2-8

Loan Forms Supported

Mortgage loans

Borrower's note loans

Loans
management

Policy loans

General loans

SAP AG 1999

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).

SAP AG

AC815

2-9

Overview of the Process for New Business Mortgage Loans

Evaluation Reports - Information System

Master Data
Business partner
Credit standing check
New business tables
Filed documents
Collateral
Object master data
Collateral values

Mortgage loans given


Inquiry by interested
party
Application
Decision-making
Offer
Contract

Position Management
Rollover
Process mgmt
Transfer postings
...

Integration with R/3 FI / TR Cash


Management
SAP AG 1999

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.

SAP AG

AC815

2-10

Possible Procedures for Loan Processing

Interest. party
Mortgages

Application
Mortgages
General loans

Decision-making, if app.

Evaluation Reports - Information System

Contract Offer
Mortgages
General loans
Policy loans

Contract
Mortgages
General loans
Policy loans

Borrower's note loans: Reservation / order /contract

Integration with R/3 FI / TR Cash Management


SAP AG 1999

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.

SAP AG

AC815

2-11

Technical Overview: Loan Processing

Cashmgmt

Company
code
Product
types
Partner
management

Contract

Conditions
Business
operations

Planned
records

Accts
receivable

G/L
acctg

Open
items

Incoming
payments

SAP AG 1999

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.

SAP AG

AC815

2-12

Loans Management- Financial Accounting

Loans
Management

R/3 Financial Accounting


(FI)
- General Ledger Accounts receivable

Interface
User's financial
accounting
system
SAP AG 1999

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).

SAP AG

AC815

2-13

Integration in FI
Loan contract: Cash flow
05/01/YY
06/30/YY
06.30.99

150,000.00
1,720.83
639.05

Loan disbursement
Interest debit pos.
Annuity repayment

0001
0110
0125

Selection of financial
transactions/ flows
to be posted.

FI Interface

Financial Accounting

SAP AG 1999

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.

SAP AG

AC815

2-14

Datafeed Architecture

SAP R/3

Datafeed provider

TR applications

Market
data
buffer

Forex

Translation
table

...

Information
provider

Reply

Query

Market
Risk Securities
Mgmt

Operative
SAP tables

External
interface
program

Selective update

Reply
Query

Datafeed

Internet/
RFC

log

Datafeed
server

SAP AG 1999

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.

SAP AG

AC815

2-15

Role - Based Menus

TR Roles
Cash manager

Assign
activities

Trader
Back office clerk

Generate
Menus

Accountant
Risk controller
Credit analyst
Staff acc. for loans
...
TR administrator
Treasury
manager
SAP AG 1999

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

SAP AG

AC815

2-16

Loans Management Within SAP Treasury: Unit


Summary

You are now able to:


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

SAP AG 1999

SAP AG

AC815

2-17

Process Flow for Loans Given

Contents:
General posting options
Create contract
Enter conditions
Cash flow
Disburse contract
Integration with FI
Payment program
Initial incoming payments (interest/repayments)

SAP AG 1999

SAP AG

AC815

3-1

Process Flow in Loans Management: Unit


Objectives

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


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.

SAP AG 1999

SAP AG

AC815

3-2

Course Overview Diagram

Loans Management
within SAP Treasury
Course overview

Process flow for


loans given
Loan contract
Disbursement
Payments due

Contract currency
changeover

Closing operations
Special cases

Complete process
including master data
Rollover
SAP AG 1999

SAP AG

AC815

3-3

Process Flow for Loans Given: Business Scenario

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.

SAP AG 1999

SAP AG

AC815

3-4

General Posting Options I

I. Without customer account

1. Disbursement: a)Preliminary posting":


c) Bank statement:

2. Debit position: a)Preliminary posting":


c) Bank statement:

Balance sheet to Bank clearing


Bank clearing to Bank

Bank clearing to Balance Sheet


to Interest revenue
Bank to Bank clearing

SAP AG 1999

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.

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AC815

3-5

General Posting Options II


II. with customer account and payment program
1. Disbursement: a)Preliminary posting":

Balance sheet to Customer account


Reconciliation 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 sheet


to Interest revenue

b1) Customer pays by bank transfer


Bank statement:

Bank clearing to Customer account

Bank to Bank clearing


or
b2) Customer pays by direct debit
Payment program:

Bank clearing to Customer account

Bank statement:

Bank to Bank clearing

SAP AG 1999

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).

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AC815

3-6

General Posting Options III


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


to Interest revenue

b1) Customer pays by bank transfer:


Bank statement:

Bank clearing to PR clearing

Bank to Bank clearing


or
b2) Customer pays by direct debit:
Payment program for PR:

Bank clearing to PR clearing

Bank statement:

Bank to Bank clearing

SAP AG 1999

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

AC815

3-7

General Process Flow

Application / Offer

Contract

Disbursement

Interest payments / repayments


SAP AG 1999

SAP AG

AC815

3-8

Example: Process Flow for a Loan Posted to a


Customer Account
Application/Offer/Contract

Disburse contract

Payment program

Post interest payments/repayments due

Payment program and/or bank statement


SAP AG 1999

SAP AG

AC815

3-9

Contract - 4 Ways of Entering Contracts in the SAP


System

Application

Transfer to
offer

Transfer to
contract

Offer

Transfer to
contract

3
Create
contract

Transfer to
Contract

Application

SAP AG 1999

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.

SAP AG

AC815

3-10

Contract - Function Overview

Change
Create

Display

Contract

Disburse

Reactivate
Waive

Full waiver
Partial waiver

SAP AG 1999

SAP AG

AC815

3-11

Contract - Initial Screen

Create Contract: Initial Screen

Company code
Loan number

0001
/internal/

Product type

33A
ENTER

Business partner selection


Role category: Main loan partner

SAP AG 1999

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.

SAP AG

AC815

3-12

Contract - Basic Data


Basic
Basicdata
data

Conditions
Conditions

Collateral
Collateral

Correspondence
Correspondence

Loan type
Loan class (standard loan, preliminary loan) ...)
Contract currency (UNI, EUR ...)
Approval date
Commitment date
Purpose of loan (personal loan, building loan ...)
Maturity (term < 1 year ... )

SAP AG 1999

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:

Entering amounts:

0:

today

+n:

today + n days

-n:

today - n days

++n:

today +n months

+++n:

today + n years

T or t for thousand
M or m for million

The abbreviations T/t and M/m can be changed in Customizing.

SAP AG

AC815

3-13

Contract - Condition Header


Basic
Basicdata
data

Conditions
Conditions

Collateral
Collateral

Correspondence
Correspondence

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 ...)
- ...

SAP AG 1999

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.

SAP AG

AC815

3-14

Contract - Condition Items


Basic
Basicdata
data

Conditions
Conditions

Collateral
Collateral

Correspondence
Correspondence

Condition items:
For each condition type (fixed nominal interest / instalment
repayment / charge ... ):
- Effective from
- Percentage rate or amount
- Calculation date
- Due date
- Exact payment form
- ...
SAP AG 1999

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.

SAP AG

AC815

3-15

Contract - Cash Flow


Basic
Basicdata
data

Conditions
Conditions

Collateral
Collateral

Correspondence
Correspondence

Calculate
Calculatecash
cashflow
flow
Due on
05/01/YY
06/30/YY
06/30/YY
09/30/YY
09/30/YY
12/31/YY
12/31/YY
03/31/YY+1
03/31/YY+1
06/30/YY+1
06/30/YY+1
09/30/YY+1
09/30/YY+1
12/31/YY+1
12/31/YY+1
03/31/YY+2
03/31/YY+2

FType
0001
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120

P
Name
A_Loan disbursem. P
A_Interest deb. pos. P
A_Instalment repmt P
A_Interest deb. pos. P
A_Instalment repmt P
A_Interest deb. pos. P
A_Instalment repmt P
A_Interest deb. pos. P
A_Instalment repmt P
A_Interest deb. pos. P
A_Instalment repmt P
A_Interest deb. pos. P
A_Instalment repmt P
A_Interest deb. pos. P
A_Instalment repmt P
A_Interest deb. pos. P
A_Instalment repmt P

Settlement amount
100,000.00
1,166.67
1,333.33
1,726.67
2,000.00
1,691.67
2,000.00
1,656.67
2,000.00
1,621.67
2,000.00
1,551.67
2,000.00
1,516.67
2,000.00
1,481.67
2,000.00

Currency
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI

SAP AG 1999

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.

SAP AG

AC815

3-16

Contract: Disbursement
Create
Disbursement:
Enter
Disbursement:
BasicBasic
Data Data
CoCd
CoCd.

0001
0001

33A
33A

Loan
Loan

40000000
40000000

Loan
partner
Borrower
00 00

General
Generalloan
loan

Disbursement
basicdata
data
Disbursement
Disbursement basic
basic
data
A_Loandisbursement
disbursement
Flow
A_Loan
Flow
type
A_Loan
0001 disbursement
0001
Flowtype
type
Text
Text
Text
Payment
Payment
date
05/01/YY
05/01/YY
Paymentdate
date
IntValDate
05/01/YY
05/01/YY
IntValDate
Incl..
Incl..
IntValDate
05/01/YY
05/01/YY
Withhold.
WithholdUp
uptoto
to
Withhold.
Up
Posting control
Automaticdebit
Debit
Position Run
Posting
Automatic
position
Postingcontrol
control
Customer
Customer
100000026
100000026
Customer
Paymentmeth.
methodPartner bank type
Payment
2 Bank
Payment meth.
Bank transfer
transferwith
withsingle
singlepayment
payment
House
bank
Partner
Partnerbank
banktype
type
PS1
PS1
House
Housebank
bank
Capital data
data
Capital
Current
Current contr.
contr.cap.
cap.
Nominal
Nominalcapital
capital
Disbursement
Disbursementinin%%
Gross
Gross pmnt
pmntamount
amount
Net
pmnt
Net pmntamount
amount

100,000.00
UNI
100.000,00 UNI
0.00
0,00
100.0000
100,0000
100,000.00
100.000,00 UNIUNI
99,900.00
99,900.00

Disbursement
Disbursementrate
rate 100,000.00
100,00000

SAP AG 1999

You make the following specifications for the disbursement :


Payment indicator: set / not set: The disbursement is posted to a customer account/ a noncustomer 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.
SAP AG

AC815

3-17

Disburse Contract: Incidental Costs


Create Disbursement: Incidental Costs
Company code

0001

Loan number

40000000
60
Loan partner 00

Borrower

33A

General loan
Contract

Capital amounts
Available capital

Value-dated capital

100,000.00

100,000.00

Flows
Flow type
3145

Processing charges

Due on
05.01.YY

Settlement
amount
100.00

Withheld Payment
method
X

SAP AG 1999

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.

SAP AG

AC815

3-18

Saving/Posting Disbursements
Disbursement
Save

Post (manually)

P
Post manually
Prerequisite:
Field Posting control

I
Post automatically
Prerequisite:
Field Posting control

Automatic
debit position
or
"Manual
debit position"

Automatic
debit position

SAP AG 1999

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.

SAP AG

AC815

3-19

Disburse Contract: Posting


Balance sheet account
46020

Disb. reconciliation acct


150600

1) 100,000
3) 100,000

Rec. reconciliation acct


150000
2) 100

100,000 1)
99,900 3)

Technical clearing acct


194200
4) 100

100 3)

Other revenues
299100

100 4)

100

2)

1) Loan disbursement
2) Incidental costs debit position
3) Incidental costs withheld: Disbursement reduced (only posted in FI)
4) Incidental costs withheld: Incoming payment

SAP AG 1999

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

SAP AG

AC815

3-20

Integration in FI
Loan contract: Cash flow
05/01/YY
06/30/YY
06/30/99

150,000.00
1,720.83
639.05

Loan disbursement
Interest debit pos.
Annuity repayment

0001
0110
0125

Selection of financial
transactions/flows
to be posted.

FI Interface

Financial Accounting

SAP AG 1999

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

SAP AG

AC815

3-21

Planned Record -> Actual Record


Cash flow in contract
Payment date

Settlement amnt

Name

P FType

05/01YY

100.000,00

Loan disburse.

0001

'Planned
record'

Post disbursement
Cash flow in contract
Payment date
05/01/YY

Settlement amnt
100.000,00

Name

P FType

Loan disburse.

0001

'Actual
record'

SAP AG 1999

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.

SAP AG

AC815

3-22

Automatic Payment: Payment Program

Master

Payment
control

Current
parameters

Documents
Documents

Proposal run

Proposal
Proposal
data
data
set

Edit
proposal

Payment run
Print data
Print program
Check

Bank
transfer

Payment
advice

Payment
summary

Pmnt
medium
SAP AG 1999

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.

SAP AG

AC815

3-23

Disbursement Payment (Bank Transfer): Posting


Balance sheet acct
46020
1) 100,000

3) 100,000
5) 99,900

Rec. reconciliation acct


150000
2) 100

100,000 1)
99,900 3)

99,900 5)

Technical clearing acct


194200
4) 100

100 3)

Other revenues
299100

100 4)

Bank clearing account


113105
6) 99,900

Disb. reconciliation acct


150600

100

2)

Bank account
113100
99,900

6)

5) Payment program
6) Bank statement

SAP AG 1999

SAP AG

AC815

3-24

Automatic Posting: Post Planned Records

Company code

0001

to

Contract number

40000000

to

Partner

to

Product type

to

Up to and incl. due date

x Test run
x

Log

01

Loan Partner 00

150100
UNI
Repayment receivables

1.333,33

0120

01

Loan Partner 00

150200
UNI
Interest receivables

1.166,67

0110

50

46000
Other loans

UNI

1.333,33

50

273100
UNI
Interest received

1.166,67

SAP AG 1999

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.

SAP AG

AC815

3-25

Posting Planned Records Due


Balance sheet account
46020
1) 100,000

1,333 7)

Rec. reconciliation acct


150000
2) 100

3) 100,000
5) 99,900

100,000 1)
99,900 3)

Other revenues
299100

100 4)

Bank clearing account


113105
6) 99,900

Disb. reconciliation acct


150600

99,900 5)

100

Technical clearing acct


194200
4) 100

100 3)

Rec. reconciliation acct


150100/150200
7) 2,500

2)

Bank account
113100
99,900

Interest revenues
273100
6)

1,167

7)

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

SAP AG 1999

SAP AG

AC815

3-26

Payment Options
Payment received from
customer
By bank transfer
or by check

By direct debit

Bank statement

Payment program
Bank statement

SAP AG 1999

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.

SAP AG

AC815

3-27

Incoming Payment
Balance sheet acct
46020
1) 100,000

1,333 7)

Rec. reconciliation acct


150000
2) 100

3) 100,000
5) 99,900

100,000 1)
99,900 3)

Other revenues
299100

100 4)

Bank clearing account


113105
6) 99,900
8b) 2,500

Disb. reconciliation acct


150600

99,900 5)

100

4) 100

100 3)

Rec. reconciliation acct


150100/150200
2)

7) 2,500

Bank account
113100
2,500 8a)

Technical clearing acct


194200

99,900

2,500 8b)

Interest revenues
273100
6)

1,167

7)

2,500 8a)

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

SAP AG 1999

SAP AG

AC815

3-28

Process Flow for Loans Given: Unit Summary

You are now able to:


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.

SAP AG 1999

SAP AG

AC815

3-29

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.

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.

SAP AG

AC815

3-30

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.

SAP AG

AC815

3-31

Unit: Process Flow for Loans Given

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.

Enter a loan disbursement.


2-1

2-2

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.

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

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.

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?

SAP AG

AC815

3-32

Unit: Process Flow for Loans Given

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.

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.

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).

SAP AG

AC815

3-33

Process Flow for Loans Given: Solutions


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 payments for interest and repayments.

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.

SAP AG

AC815

3-34

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.

SAP AG

AC815

3-35

Unit: Process Flow for Loans Given


Topic: Loan disbursement

Disbursement
2-1

To execute a disbursement:

Accounting
Treasury
Loans
Transaction Management
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
3

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

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.

SAP AG

AC815

3-36

Display the contract:


Accounting

Treasury
Loans
Transaction Management
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.

SAP AG

AC815

3-37

Unit: Process Flow for Loans Given


Topic: Automatic debit position run for interest payments
and repayments

Automatic debit position run for interest payments and repayments


5-1

Display the due date via

Accounting
Treasury
Loans
Transaction Management
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.

SAP AG

AC815

3-38

5-4

Display the cash flow:

Accounting
Treasury
Loans
Transaction Management
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

AC815

3-39

Loan Contract

Contents:
Create contract
Generate correspondence
Customizing:
- Loans and Financial Accounting
- Business partners
- Product types
- Flow types
- Conditions
- Correspondence

SAP AG 1999

SAP AG

AC815

4-1

Loan Contract: Unit Objectives

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


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

SAP AG 1999

SAP AG

AC815

4-2

Course Overview Diagram

Loans Management
within SAP Treasury
Course overview

Process flow for


loans given
Loan contract
Disbursement
Payments due

Contract currency
changeover

Closing operations
Special cases

Complete process
including master data
Rollover
SAP AG 1999

SAP AG

AC815

4-3

Loan Contract: Business Scenario

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.

SAP AG 1999

SAP AG

AC815

4-4

Customizing Levels

Loans Management
General Customizing Settings:
1. Enterprise Structure
2. Financial Accounting
3. Treasury

SAP AG 1999

SAP AG

AC815

4-5

Enterprise Structure Settings

Implementation Guide for R/3 Customizing


_

Enterprise Structure
_

Definition
_

Financial Accounting
Define, Copy, Delete, Check Company Code
:

Company code

0001

Company name

Group 01

City

London

Land
Currency
Language

EN
UNI

SAP AG 1999

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

AC815

4-6

Financial Accounting Settings

Implementation Guide for R/3 Customizing (IMG)


+
+
+
_

Financial Accounting
_

Financial Accounting Global Settings


_

Company Code
Enter Global Parameters

Company code
Chart of accounts

0001

Fiscal year variant

INT

Max. exchange rate deviation 10%

K4

Financial Assets Mgmt active

SAP AG 1999

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

AC815

4-7

Treasury Settings (1)


_

Implementation Guide for R/3 Customizing (IMG)


+
+
+
+
_

Treasury
_
_
_
_

Treasury Management
_

Basic Functions
_

Organization
_

Define Company Code Additional Data

Company code

0001

Calendar

01

Reg. reporting active

Ident. no. ID

SAP AG 1999

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

AC815

4-8

Treasury Settings (2)


Implementation Guide for R/3 Customizing (IMG)
+
+
+
+
_

Treasury
_
_
_
_

Treasury Management
_

Loans
_

Basic Settings
_

Installation parameters

Currency
Word processing
Archiv. install.

UNI
SAPSCRIPT
x

SAP AG 1999

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.

SAP AG

AC815

4-9

Mortgage Loan - Processing Seq. / Contract

Transaction Management
Interested
party

Applicat.

Offer

Contract

Portfolio / Accounting
Disbursement

Other
activities

Rollover

- Create loan
- Business partners
- Conditions
- Correspondence

SAP AG 1999

SAP AG

AC815

4-10

Create Contract
Mortgage

Borrower's note

Policy loan

General loan

Change
Create

Display

Contract

SAP AG 1999

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

SAP AG

AC815

4-11

Loan - Initial Screen

Create Contract: Initial Screen

Company code
Loan number

0001
/internal/

Product type

33A
ENTER

Business partner selection


Role category: Main loan partner

SAP AG 1999

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.

SAP AG

AC815

4-12

Customizing Structure: Loans


Product cat.

Status cat.

Flow category

Calculation cat.

Condition type

Flow type

SYSTEM LEVEL
Status definitions/
status transfers
Product type

Condition group

APPLICATION LEVEL
SAP AG 1999

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.

SAP AG

AC815

4-13

Customizing: Define Product Types

Product type

30A

Short text

Mortgage

Long text

Mortgage loan given

Product category
Assets/Liab.

300
0

Order management
a Interest per disbursement

Condition group 1
Limit group
201

a Collateral active

Price gain

a Objects active

User exit active

SAP AG 1999

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").

SAP AG

AC815

4-14

Loan Number

Loan
no. 10000007

Number assignment for loans

Simple number
assignment
I.

With number
composition
II.

SAP AG 1999

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.

SAP AG

AC815

4-15

Customizing: Number Range for Loan Number


I.

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

No.
01

II.

From number
10000000

To number
19999999

Current number

Ext

10000005

-> Product Types -> Loan Numbers -> Define Number Components
-> Assign Number Components
to Product Type
_____________
Component 1 Component 2 ...

Internal / external / in conjunction with an object or file


SAP AG 1999

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.

SAP AG

AC815

4-16

Customizing: Product Types


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

Text

Prod. cat.

Cond. group

30A

Mortgage loan given

300

30B

Mortgage loan taken

300

504

31A

Borrower's note loan

310

33A

General loan given

330

33B
...

General loan taken

330

504

"Double-click"
for detailed
information

see
following pages

SAP AG 1999

SAP AG

AC815

4-17

Customizing: Product Types / Details (1)


Product Types -> Company Code-Dependent Settings for Product Type - Details
Company code
Product type
Product category

0001
30A
300

Mortgage loan given

Condition group

504

Number range

Number range
No. char.

01

Sample recNoRg

MU

No. status

10000088

Basic settings

CM period
FI posting
Dunning block
Ref. management

4
3 Actual record in Treasury, posting in FI with customer
A
2

Indicators

Dunning active
Decision-making active
Pmnt form start
Price gains w/o prop. gains fr. def. WB

Payment details

Reversal

Rev. level IP

SAP AG 1999

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)

SAP AG

AC815

4-18

Customizing: Product Types / Details (2)


Product types -> Company Code-dependent Settings for Product Type - Details
Company code
Product type
Product category
Condition group

0001
30A
300
1

Mortgage loans given

Field selection

Defaults:
Currency

UNI

Plan/Act.pr.

Posting system

!
!

IntValD Incl.
Withhold Disb.

Payment method
Eff.int.method

PAngV

Alt.eff.int.meth.

4
1

Moosmller

Int.calc.method

IPD-Control
3
Incoming payments 3

360E/360

Accrued/deferred dis. 1

Contract
Contract

Disc. determin.
Payment block IP
Payment block OI

N
V

Payt summarization

SAP AG 1999

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.

SAP AG

AC815

4-19

Customizing: Status Definitions


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

Company code
Product type
CS
1
20
31
34
37
60

0001
30A

Status name
Application
Contract offer
Applic. waived/deactivated
Contract offer waived
Contract waived
Contract

Int. level
31
33
32
34
37
35

DGr
1
2
1
2
3
3

FI

AFS

CG

3
3

X
X
X
X
X
X

Entry 1 of 9

Field selection
SAP AG 1999

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

SAP AG

AC815

4-20

Customizing: Define Status - Field Selection

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

Select group
Basic data classification basis
Conditions basic data
Correspondence
...
Basic data

Hide

Choose
Req.entry

Opt.entry

Display

Loan type
Loan class
Primary collateral

SAP AG 1999

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

SAP AG

AC815

4-21

Customizing: Business Partners

You need to make the following Customizing settings for


the business partners used in the loans area:
1. Treasury Management -> Basic Functions ->
Business Partners
For 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 Settings
For example: Assign role category to application, default values per
product type, company code-dependent data for automatic creation

SAP AG 1999

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.

SAP AG

AC815

4-22

Business Partner Data - Overview

Business
partner

Central data

Name
Address overview
Bank details
Personal data
Employment data
Legal data
Financial year
Relationships

General
role data

Role overview
Role data
Credit standing
Control data
Reporting data
Controls
Bank

Company code
data:

Account management
Account interest
calculation
Autom.payt trans.Payt data
Dunning data
Reporting data
Controls
Relationships

SAP AG 1999

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- ...

SAP AG

AC815

4-23

Basic Functions: Customizing for Business


Partners (1)
_

Business Partners
_ Control Data
_ Define Role-View
Assignment
_
_
_

Role

Name of role View

Name

0100

Main partn.

0010

Acct mgmt

0100

Main partn.

0040

Pmnt data

Roles
_

Define Role Types


RType Name RType RoleC Name RoleC
A100
A102

Main borr.
Main lender

0100
0100

Main partn.
Main partn.

+ General
SAP AG 1999

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.

SAP AG

AC815

4-24

Basic Functions: Customizing for Business


Partners (2)
TR

FI
created
automatically

Create
business
partner

Create
customer

Customizing:
Grp.

NR Acct group Descr. of group.

TR01
TR02

01
02

DEBI
DEBI

TR partner (int)
TR partner (ext)
BP grouping

No.

Fr. no.

01
02

000001 000099
AAAAAA

To no.

Curr. no. Ext.

ZZZZZZ

5
X
Number ranges

SAP AG 1999

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.

SAP AG

AC815

4-25

Business Partners

Basic Functions TR-TM


Create / change / display

Partner

Loans Management
Create / change / display in
role
Create / change / display in
role in conjunction with loan

SAP AG 1999

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.

SAP AG

AC815

4-26

Loans: Customizing for Business Partners (1)

Business Partner Settings


PTyp Text

Assign Role Category to


Application

Grp.

Payee i.dc

30A Mortg.loan

Specifications
Define Default Values per
Product Type ...

Define Default Values ... for


Autom. Customer Creation

Product type
Company code
Reconcil. account
Payment methods

30A
0001
150000
12AESU

SAP AG 1999

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.

SAP AG

AC815

4-27

Business Partners: Roles

Role categories:
Main loan partner
Borrower
Alternative payer/ee
Person authorized to draw

Business partner

...

SAP AG 1999

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.

SAP AG

AC815

4-28

Creating a Partner: Application Area


Create Partner: Application Area

Application cat.

Role types/categories
A100 Main borrower
A101 Other borrower
A102 Main lender
...

F4

0010
0011
0012
0013
0015
0016

Mortgage loan
Borrower's note loan
Policy loan
General loan
Interested party
Special arrangements

SAP AG 1999

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

SAP AG

AC815

4-29

Loans: Customizing for Business Partners (2)


Application - Mortgage loan

Loans

Basic Settings

RoleC

Name of role category

0100
...

Main loan partner

Business Partner Settings


"Double-click"
Assign Role Category
to Application

Grouping

DAR1

SAP AG 1999

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.

SAP AG

AC815

4-30

Loans: Business Partner Overview

Loan

40000000

Partner list
Name
Main borrower

Name / Address
Smith, 1 Main Street

BnkT Customer Address


Default
100078

Select partner (or "double-click" )

Treasury - Business Partner Management


Partner
Classification

90000001
Natural person

Appl. cat.

Mortgage loan

SAP AG 1999

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.

SAP AG

AC815

4-31

Create Contract - Basic Data


Basic
Basicdata
data

Conditions
Conditions

Collateral
Collateral

Objects
Objects

CorresponCorrespondence
dence

... various fields for information / reporting / automatic determination of


account assignment reference
Contract currency
Discount accrual/deferral
Finance project
IPD control
Planned principle / actual principle
Clerk assignment
Capital amounts
Additional fields
User fields
SAP AG 1999

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.

SAP AG

AC815

4-32

Customizing: Basic Data (1)

Loan category

Loan type
Loan purpose
F4

Maturity

Customizing

Loans

Master data

SAP AG 1999

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.

SAP AG

AC815

4-33

Customizing: Basic Data (2)


_

Loans

Loan
Loan type
type // loan
loan class
class

+ Basic Settings

Purpose
Purpose of
of loan
loan

+ Transaction Management
_ Master Data

Maturity
Maturity

Offer
Offer acceptance
acceptance types
types

Basic Settings
_

Reasons
Reasons for
for non-acceptance
non-acceptance
::

_
_

Contract Acceptance
/Notice

Branch
Branch offices
offices
Regions
Regions

_
_

::

Agent Data

Balance
Balance sheet
sheet indicators
indicators

_
_

Special
Special posting
posting treatment
treatment
Indicators

::

SAP AG 1999

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

SAP AG

AC815

4-34

Basic Data: Planned/Actual Principle

Interest calculation capital

Repayment:
debit
position

Time

Repayment:
incoming
payment
Key:

Planned principle
Actual principle
SAP AG 1999

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).

SAP AG

AC815

4-35

Basic Data: Clerks


Customizing:
1. Field selection control for clerk fields in the basic data
2.

Activity type

Role category

Clerk as business partner

P
Application: Loan contract no. 10000007
Activity type

Clerk

P
D
...

Activity type

Clerk/team in Customizing

D
SAP AG 1999

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".

SAP AG

AC815

4-36

Basic Data: Capital Amounts


Contract capital

Contract capital originally agreed

Reduction

Total partial waivers

Current contract capital

Contract capital ./. reduction

Commitment capital

Capital of current fixed period


(see condition header)

Value-dated capital

Total disbursements with capital transfers

Effective capital

Value-dated capital ./. repayments

Disbursement commitment

Current contract capital ./. value-dated capital

Remaining capital debit

Value-dated capital ./. (all) repayments

position
Nominal remaining capital

Debit position for the remaining capital without


price gains and discount (relevant for borrower's
note loans with net posting)

SAP AG 1999

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.

SAP AG

AC815

4-37

Condition Structure

Loan basic data


Condition header
------------------------------------------------------

Condition items
Planned

records

Cash flow

SAP AG 1999

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

SAP AG

AC815

4-38

Condition Header / Condition Items

Loan contract

Fixed period
from 05/01/YY
04/30/YY+3
Fixed period
from 05/01/YY+3
04/30/YY+6

Charges
from 05/01/YY
USD 100
Annuity repmnt
from 05/01/YY
4.0%

Interest
from 05/01/YY
6.0%
Condition header

SAP AG 1999

Interest
from 05/01/YY+3
5.5%
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).

SAP AG

AC815

4-39

Contract - Condition Header


Basic
Basicdata
data

Conditions
Conditions

Collateral
Collateral

Objects
Objects

CorresponCorrespondence
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, ...)

SAP AG 1999

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.

SAP AG

AC815

4-40

Contract: Conditions

Condition type

Example: Nominal interest

Condition item
Nominal interest rate
5%

Periods

% or amount

Example: Effective from


MM/DD/YYYY

Eff. from MM/DD/YY

Example: 5%

SAP AG 1999

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

SAP AG

AC815

4-41

Contract - Condition Items


Basic
Basicdata
data

Conditions
Conditions

Collateral
Collateral

Objects
Objects

CorresponCorrespondence
dence

Condition items:
For each condition type (fixed nominal interest / instalment
repayment / charge ...):
- Effective from
- Percentage rate or amount
- Calculation date
- Due date
- Exact payment form
- ...
SAP AG 1999

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, midperiod, 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).

SAP AG

AC815

4-42

Condition Items - Fields

Condition items
Cond.type text Eff. from Percent Amnt Curr.Lvl IS PF PE Frq Due onEDCalc.date MCCal
Nom.interest

05/01/YY 6.0000

UNI

3 VN 3

06/30/YY

06/30/YY

Ann. repmnt

05/01/YY 4.0000

UNI

3 VN 3

06/30/YY

06/30/YY

...

...

...

...

...

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

...

...

SAP AG 1999

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).

SAP AG

AC815

4-43

Condition Structure: Frequency (1)

Eff. from
Condition type 1

04/01/YY

Percent

PF PE Frq

Due on

Calc. date

05/15/YY

06/30/YY

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

or

Condition type 2

04/01/YY

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/YY
07/01/YY - 09/30/YY, due on 08/15/YY
10/01/YY - 12/31/YY, due on 11/15/YY
......
SAP AG 1999

SAP AG

AC815

4-44

Condition Structure: Frequency (2)


Example:

Eff. from: 03/15/YY

Frequency:
Calculation date:

03
05/10/YY

Due on: 06/30/YY

01

02

Cash flow:

03

04

05

06

07

08

09

...
Time
(month)

Interest 03/15/YY - 05/10/YY, due on 06/30/YY


Interest 05/11/YY - 08/10/YY, due on 09/30/YY
Interest 09/11/YY - 11/10/YY, due on 12/31/YY
Interest 11/11/YY - 02/10/YY+1, due on 03/31/YY+1
....

SAP AG 1999

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.

SAP AG

AC815

4-45

Condition Structure: Condition Types

Eff. from

Percent

Condition type 1

04/01/YY

Interest:
04/01/YY - 03/30/YY+1:

5 % p.a.

Condition type 1

04/01/YY+1

04/01/YY+1 - 09/30/YY+3:

6 % p.a.

Condition type 1

10/01/YY+3

10/01/YY+3 - "Fixed until":

7 % p.a.

Condition type 2

04/01/YY

...

Condition type 3

04/01/YY

...

SAP AG 1999

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.

SAP AG

AC815

4-46

Condition Types

Fixed
interest

Variable
interest

Int.
Int. rate
rate
adjustment
adjustment

Repayment
Repayment
Charges
Charges
Repayment
Repayment
settlement
settlement

SAP AG 1999

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.

SAP AG

AC815

4-47

Condition Form

Condition items

CF

1. Zero condition
2. Fixed condition
3. Statistical condition

SAP AG 1999

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.

SAP AG

AC815

4-48

Condition Items - Detail Screen


Condition Overview
Items
Nominal interest

"Double-click"
on relevant item

Detail screen

SAP AG 1999

In the condition detail screens for the respective condition items you can enter additional data and
make changes to existing entries.

SAP AG

AC815

4-49

Condition Items - Detail Screen


CoCd

0001

Loan

40000000
201 A_Nominal interest

Cond.type

30A

Mortgage loan

Contract

Eff. from

05/01/YY
Amounts
Data for percentage calculation
Ref.int.rate
Int. calc. method
Formula
Dates
Calendar 01
Calculation date
Regular
3 months
Berechnungstag
Flligkeitstag
1st date
Zahlungstag
Due date
Regular 3 months
1st date

Posting control

No shift
Incl.
No shift
Incl.

Payment data / Other


1 Automatic debit position

SAP AG 1999

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.

SAP AG

AC815

4-50

Planned Records

Interest

05/01/YY 3 6%

Repayment 05/01/YY 3 4%

Flows
Calculate
yield

Cash flow - Planned records

...

...

Interest /
repayment
schedule

...

SAP AG 1999

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).

SAP AG

AC815

4-51

Loans - Cash Flow


Basic
Basicdata
data

Conditions
Conditions

Collateral
Collateral

Objects
Objects

CorresponCorrespondence
dence

Calculate
Calculatecash
cashflow
flow
Due on
05/01/YY
06/30/YY
06/30/YY
09/30/YY
09/30/YY
12/31/YY
12/31/YY
03/31/YY+1
03/31/YY+1
06/30/YY+1
06/30/YY+1
09/30/YY+1
09/30/YY+1
12/31/YY+1
12/31/YY+1
03/31/YY+2
03/31/YY+2

FType
0001
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120

P
Name
A_Loan disbursem. P
A_Interest deb. pos. P
A_Instalment repmt P
A_Interest deb. pos. P
A_Instalment repmt P
A_Interest deb. pos. P
A_Instalment repmt P
A_Interest deb. pos. P
A_Instalment repmt P
A_Interest deb. pos. P
A_Instalment repmt P
A_Interest deb. pos. P
A_Instalment repmt P
A_Interest deb. pos. P
A_Instalment repmt P
A_Interest deb. pos. P
A_Instalment repmt P

Settlement amnt

Curr.

100,000.00
1,166.67
1,333.33
1,726.67
2,000.00
1,691.67
2,000.00
1,656.67
2,000.00
1,621.67
2,000.00
1,551.67
2,000.00
1,516.67
2,000.00
1,481.67
2,000.00

UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI

SAP AG 1999

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
ccrual 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.

SAP AG

AC815

4-52

Effective Calculation of Interest

AIBD/ISMA Brae Moosm. PAngV


Page 1

IDES Corp.
Scaling period 05/01/YY to 04/30/YY+ 5

Effective interest: 6.71156

% PANGV

Contract No.: 10000000


ValueDte

Activity

05/01/YY
05/01/YY
06/30/YY
06/30/YY
09/30/YY
09/30/YY
12/31/YY
12/31/YY
12/31/YY
03/31/YY+1
03/31/YY+1
05/01/YY+1
06/30/YY+1
06/30/YY+1

Discount debit pos.


Loan disbursement
Interest deb. pos.
Annuity repayment
Interest deb. pos.
Annuity repayment
Interest deb. pos.
Annuity repayment
Processing charge
Interest deb. pos.
Annuity repayment
Interest capitalizat.
Interest deb. pos.
Annuity repayment

Amount

Balance

3,000.00150,000.00
1,500.001,000.002,235.001,515.002,212.281,537.72100.002,189.211,560.799,471.08
2,165.801,584.20-

3,000.00147,000.00
145,500.00
144,500.00
142,265.00
140,750.00
138,537.72
137,000.00
136,900.00
134,710.79
133,150.00
142,621.08
140,455.28
138,871.08

Days

Interest

59

1,616.93

90

2,424.55

91

2,387.87

90

2,297.03

30
59

744.70
1,568.76

90

2,330.10

SAP AG 1999

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.

SAP AG

AC815

4-53

Payment Schedule

Loan no. 10000000

PAYMENT SCHEDULE
Loan partner 00

Loan type:

05/01/YY

Mortgage loan

Calculation from:

05/01/YY

Commitment cap.: UNI 150,000.00

Calculation to:

04/30/YY+5

Display currency: Universal Currency

Start of term:

05/01/YY

End of term:

04/30/YY+15

End of fixed period: 04/30/YY+5


Conditions

Eff. from

Percent

Nom. interest

05/01/YY

6.00000 %

Quarterly

06/30/YY

360/360

Ann. repaymnt 05/01/YY

4.00000 %

Quarterly

06/30/YY

360/360 imm. settlem.

Payment date

Payment

Amount Frequency First pmnt

Interest

Repayment

Int. calc. meth.

Other

05/01/YY

Rem. bal.
150,000.00

06/30/YY

2,500.00

1,500.00

1,000.00

09/30/YY

3,750.00

2,235.00

1,515.00

12/31/YY

3,850.00

2,212.28

1,537.72

03/31/YY+1

3,750.00

2,189.21

1,584.20

149,000.00
147,485.00
100.00

147,404.48
146,400.49

SAP AG 1999

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.

SAP AG

AC815

4-54

Conditions: Payment Data


Business partner master record: Bank details

Bank type

10020030

87654321

20030040

12345678

BR1
BR2

Dir.debit

Contract - Partner overview


Partner
90000001

Customer
100000000

Bank type PM
E
BR1

Contract - Condition details


Payer(ee) / Payment data
Partner

Choose bank type/pmnt meth. for condition

Condition
Nominal interest

Partner bank type BR2

SAP AG 1999

05/01/YY

Choose bank type/pmnt meth.


BnkT PM
Entries for partner
BR1
E
Entries for condition BR2
U

Save

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.

SAP AG

AC815

4-55

Customizing Structure: Loans


Product cat.

Status cat.

Flow category

Calculation cat.

Condition type

Flow type

SYSTEM LEVEL
Status definitions/
status transfers
Product type

Condition group

APPLICATION LEVEL
SAP AG 1999

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).

SAP AG

AC815

4-56

Customizing: Define Flow Types (1)

Example:
Flow type

0001

Flow category

Loan disbursement

Calculation category AA

A
Inflow

Inflow

Controls accounting
processing

Controls processing
in financial mathematics

SAP AG 1999

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.

SAP AG

AC815

4-57

Customizing: Define Flow Types (2)

Flow type

0001 A_Loan disbursement

Grouping
Flow category
Calculation cat.

A
AA

Inflow
Inflow

Assets/Liab.

Loans given

Posting
Posting control
Incoming payment
! Relevant to CM
Payment details
Direction
Payment request
Individual payment

SAP AG 1999

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.

SAP AG

AC815

4-58

Assign Flow Types to Flow Category


Customizing
CGr FCat

FTyp1 Name

FTyp2 Name

0165

0170

TA

Disc.debit pos.

Prem.credit pos.

Cash flow
Cash flow
Payment date

Settlem. amnt

Name

P FType

05/01/YY

150,000.00

Loan disbursement

P 0001

05/01/YY

3,000.00

Discount debit pos.

P 0165

...

SAP AG 1999

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.

SAP AG

AC815

4-59

Customizing Structure: Loans


Product cat.

Status cat.

Flow category

Calculation cat.

Condition type

Flow type

SYSTEM LEVEL
Status definitions/
status transfers
Product type

Condition group

APPLICATION LEVEL
SAP AG 1999

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".

SAP AG

AC815

4-60

Customizing: Conditions

1.

Define condition types

2.

Define condition groups

3.

Assign condition types to condition groups

4.

Assign flow type to condition group per


application function

SAP AG 1999

SAP AG

AC815

4-61

Customizing: Condition Types

CTyp Name
200
201
209
212
261
262

RefC FTyp1 FTyp2 FCat

A_Nom.interest var.
A_Nom. interest fixed
A_Int.rate adjustment 200
A_Processing charge
A_Annuity repayment
A_Instalm. repayment

0110
0110
3145
0125
0120

TZ
TZ
ZF
TB
TTAN
TTRA

FiMa

Payt

TZ
TZ
ZA
TB
TTAN
TTRA

...

Field selection
SAP AG 1999

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).

SAP AG

AC815

4-62

Customizing: Condition Groups

CGr

Name

Ass/Lia

Mortgage loan given

Borrower's note loan

Policy loan given

General loan given

504
.
.
.

Loan taken

SAP AG 1999

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.

SAP AG

AC815

4-63

Customizing: Condition Assignment

CGr

Name

CType

Name

1
1
1
1
1
1
1

Mortgage loan
Mortgage loan
Mortgage loan
Mortgage loan
Mortgage loan
Mortgage loan
Mortgage loan

200
209
212
261
262
271
272

A_Nom.interest var.
A_Int.rate adjustment
A_Process. charge
A_Annuity repayment
A_Instalm. repayment
A_Ann. rep. settlem.
A_Inst. rep. settlem.

.
.
.

.
.
.

.
.
.

.
.
.

Double-click

Details

SAP AG 1999

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.

SAP AG

AC815

4-64

Customizing: Assign Conditions -> Details


Condition group 1
Condition type
200

A_Nominal interest var.

Field control
Sequence no.
Hierarchy

1
Hide

Default values
Basic data

Payment data / Posting


Pmnt method
Incoming pmnt
Posting control 1

Int.calc.method
Calculation date
Calendar rule
Inclusive ID
Month-end calc.
Other data
Pmnt form
Calendar
01

Due date
No shift

Calendar rule

No shift

Due date meth. 1


Month-end

Regularly with fixed dates

Condition form

SAP AG 1999

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.

SAP AG

AC815

4-65

Conditions: Summary
Application:

Create loan

(Application, offer, contract)

- Company code
- Product type

Application: Cash flow

Customizing:
Product category

Condition group

Condition types

Flow types
Other flow types

Flow category

Calculation category

SAP AG 1999

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.

SAP AG

AC815

4-66

Customizing: Payment Form

Condition item
Effective from
Nominal interest

05/10/YY
Lvl

Exact Payment Form

Percent
PF

PE Frq

MN 12

Name

JM
JN
JV
MM
:

Mid-year
Yearly at end of period
Yearly at start of period
Mid-month - 1 day
:

Curr.
UNI

10.000000

via F4

PE

Amount
Due date

06/09/YY

ED CR

Calc. date

UB

06/09/YY

Payment form Start of term


Company code -dependent data
for product type - details
Payment form start

SAP AG 1999

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 Jyearly 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

SAP AG

AC815

4-67

New Business Table


Table

MORTG_01

YY05

001

Effective to
Effective from 05/01/YY
Variants
Rnk. Fxd int.
DRate % Nom. int.
001

98.00000

05/31/YY
PE

PF

6.00000

Frq IS
3

Repayment PF
4.00000

PE

Ref. int.

+/-

Frq IS
3

Rep.sttl.

PF

EIM

ICM

PE

Frq

IS
X

Contract: Conditions
Condition table
Items
Nominal interest

6.00000

Annuity repayment

3
4.00000
X

SAP AG 1999

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.

SAP AG

AC815

4-68

Create Loan: Initial Screen

Sample loan

Company code
Loan number

0001
/ intern /

Product type

30A

Reference data
Sample loan no.
Partner

SAP AG 1999

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.

SAP AG

AC815

4-69

Contract - Correspondence
Basic
Basicdata
data

Conditions
Conditions

Collateral
Collateral

Dunning
ManDunnLvl
Dunning per
No dunning

D.level

CorresponCorrespondence
dence

External account statement


Key date
Generation frequency
Generate upon request
Statement number
0

Loan contract

Dunning history
D.area

Objects
Objects

Interest certificate

Last dunn.

Key date
Processing type
Generate int.cert. in annual batch

SAP AG 1999

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.

SAP AG

AC815

4-70

Contract - Generate Correspondence


Contract: Correspondence
Edit
Generate correspondence

Correspondence activity
Lang.

CA

Name

EN

2920

Ext. account statement

EN

1060

Mortgage loan contract

LOAN CONTRACT

10000000
Smith
DC 20433 Washington
The lender ... shall grant John Smith a mortgage loan of USD ... under the
following conditions:
Loan number.:
Main borrower:

SAP AG 1999

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.

SAP AG

AC815

4-71

Customizing: Correspondence - General


_ Loans

DGrp

+
+
+

Letter name

Letter description

DARV CONTRACT.MORTGE Mortgage contract

_ Functions
_ Correspondence

CA

Name of correspondence activity

1010
:
1060

Mortgages: Interested party processing


Mortgages: Contract processing

Define Documents
Define Correspondence
Activities
Assign Transactions to
Correspondence Activities
Assign Function/Program
to Correspondence
Activities
Assign Documents to
Correspondence Activities
and Roles

Code

Corr. act. Corr. act. name


1060 Mortgages: Contract processing

Mortg.

CA SNo ROri RType


1060

Define Correspondence
Classes

0100

Details

0100

Letter
Letter name descr.
CONTRACT.
MORTGE

Assets/Liab.

Mortgage
contract

SAP AG 1999

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.

SAP AG

AC815

4-72

Customizing: Correspondence - External Flow Types


Dependent on company code and language

_ Functions
_
Correspondence
_

External Flow Types


Define External Flow Types
Assign External Flow Type
to Report Category
Assign External Flow Type
to (Internal) Flow Type

EFTyp

Name

100

Principle change

101

Disbursement

Dependent on company code and report category


EFTyp

Name

100

Principle change

300

Interest

RCol

Dis
1

Dependent on company code and report category


FTyp

Name

0001

Loan disbursem. 100

Principle change

2001

Interest IP

Interest

EFTyp
300

Name

SAP AG 1999

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).

SAP AG

AC815

4-73

Loan Contract: Unit Summary

You are now able to:


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

SAP AG 1999

SAP AG

AC815

4-74

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.

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:

SAP AG

Product category:

300

Asset/liability:

Condition group:

Limit group:

301

Interest per disbursement:

Collateral active:

Objects active:

AC815

4-75

1-2

Make the following company code-dependent settings for your product type:

Number range:

01 (internal)

Sample recNoRg:

MU

CM period:

Dunning block:

FI posting:

3 (actual records in Treasury)

Discount limit:

0.2000

Ref. management: 2

Dunning active:

Dec. active:

Defaults:

1-3

SAP AG

Currency:

Int. Vdate incl.:

Withhold. disb.:

UNI

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.

AC815

4-76

1-4

Create the required status "60" (contract).


Enter the following criteria:

1-5

Internal level 35

Document group 3

Generate cash flow in contract

Alternative field selection

No alternative field selection (do not select)

Only permit "contract" status 60 for your product type 9XX. Permit changes to
the status.

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.

SAP AG

AC815

4-77

Loan Contract Solutions


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.

Define product type PXX.


1-1

Select the following in Customizing:

Treasury
Treasury Management
Loans
Transaction Management
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
Treasury Management
Loans
Transaction Management
Product Types
Company Code-Dependent Settings for Product Type
SAP AG

AC815

4-78

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
Treasury Management
Loans
Transaction Management
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.

SAP AG

AC815

4-79

1-5

Set up the permitted status transfers under

Treasury
Treasury Management
Loans
Transaction Management
Product Types
Company Code-Dependent Settings for Product Type
Define Status Transfers per Product Type
Prev.
status

Status name

0
60
2

Contract

New
status

Status name

60

Contract

60

Contract

Create the condition "Special charges XX".


2-1

Copy flow type 3145 via

Treasury
Treasury Management
Loans
Transaction Management
Flow Types
Define Flow Types
Select flow type 3145 and then use the copy function.

SAP AG

AC815

4-80

2-2

Define condition type 9XX in the IMG under

Treasury
Treasury Management
Loans
Transaction Management
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
Treasury Management
Loans
Transaction Management
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.

SAP AG

AC815

4-81

2-5

Enter a new condition in the contract:

Accounting
Treasury
Loans
Transaction Management
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

AC815

4-82

Disbursement

Contents
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

SAP AG 1999

SAP AG

AC815

5-1

Disbursement: Unit Objectives

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


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

SAP AG 1999

SAP AG

AC815

5-2

Course Overview Diagram

Loans Management
within SAP Treasury
Course overview

Process flow for


loans given
Loan contract
Disbursement
Payments due

Contract currency
changeover

Closing operations
Special cases

Complete process
including master data
Rollover
SAP AG 1999

SAP AG

AC815

5-3

Disbursement: Business Scenario

You want to disburse your loan.

SAP AG 1999

SAP AG

AC815

5-4

Mortgage Loans: Processing Seq./Contract

Transaction management
Interested
party

Appl.
Appl.

Offer

Contract

Portfolio/Accounting
Disbursement

Other
activities

Rollover

- Create loan
- Business partner
- Conditions
- Correspondence
- Disburse/post loan
- Integration with CM
- Integration with FI
SAP AG 1999

SAP AG

AC815

5-5

Disburse Contract: Settlement


Create Disbursement: Basic Data
CoCd

0001

30A

Loan

10000000

Brown / 1 Main Street / Washington DC 20433

Mortgage loan

Disbursement basic data


Flow type
Text
Payment date
IntValDate
Withhold up to
Posting control
Customer
Payment method
Partner bank type
House bank

A_Loan disbursement

0001
05/01/YY
05/01/YY
05/01/YY

Incl.

Automatic debit position


100078
2 Bank transfer with individual payment
KB1

Capital data
Curr. contract cap.
Nominal capital
Disbursement in %
Gross payment amnt
Net payment amnt

150,000.00 UNI
0.00
100.0000
150,000.00 UNI
146,500.00

Disbursement rate 98.00000

SAP AG 1999

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

AC815

5-6

Disburse Contract: Incidental Costs/Withholding


Create Disbursement: Incidental Costs
Company code

0001

Loans

10000000

Capital amounts
Available capital

30A

Value-dated capital

150,000.00

150,000.00

Flows
Flow

Name

Due on

...

Settlement
amount

...

Withhold Pmnt
meth.

3145

Proc. charge. deb.pos.

05/01/YY

500.00

0165

Discount debit position 05/01/YY

3,000.00

SAP AG 1999

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

AC815

5-7

Disburse Contract: Drawings


Create Disbursement: Drawings
Company code
Loan
Borrower

0001

30A Mortgage loans


60 Contract

10000000

Brown /1 Main Street / Washington DC 20433

Capital data and payee data


Drawing amount
Amount in LC
Payment method
Name
Street
P.O.Box
City
Country
Bank country
Bank account
:

50,000.00
50,000.00

UNI
UNI

Net payt amnt


Drawn amount
Remaining amt

146,500.00
50,000.00
96,500.00

William Green
7 Main Street

P.O.Box code
Postal code

Springfield
US
US

Bank number
:

87654679

69227

10020030

SAP AG 1999

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

AC815

5-8

Data of Person Authorized to Draw


or
Partner overview

Partner overview
- Main borrower

- Main borrower
- Person authorized to draw

Disbursement to

Disbursement to
- Main borrower
- Person authorized to draw

- Main borrower
- Person authorized to draw
Data: - Manual

Data: - Manual
or
- Default from
partner overview
Customizing: If plausibility check for partner:
Only possible: Data:

- Default from
partner overview

SAP AG 1999

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).

SAP AG

AC815

5-9

Saving/Posting Disbursements
Disbursement
Save

Post (manually)

P
Post manually
Prerequisite:
Field: Posting control:

Automatic
debit position
or

I
Post automatically
Prerequisite:
Field: Posting control:

Automatic
debit position

Manual debit position

SAP AG 1999

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.

SAP AG

AC815

5-10

Integration with R/3 FI/TR Cash Management

Loan disbursement
Disbursement saved
Disbursement posted

Disbursement posted

TR-CM Interface

FI Interface
Financial Accounting

Liquidity forecast/cash position

05/01/YYYY

146,500.00

SAP AG 1999

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.

SAP AG

AC815

5-11

Integration: Cash Management Disbursement

TR - LO

TR - CM

Application, offer
Contract

Planned contract disbursement


(Planned record)

Posting via customer accounts:


Subledgers: Level 1, group E2
Posting without customer accts:
Banks: Level 1*, account 113100

SAP AG 1999

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.

SAP AG

AC815

5-12

Integration with Treasury Cash Management


Loans management: Cash flow
05/01/YY 150,000.00
06/30/YY
1,720.83
06/30/YY
639.05

Loan disbursement
Interest debit pos.
Annuity repayment

0001
1001
1103

Planned loan disbursement


With cust. accts

Without cust. accts

TR-CM Liquidity forecast

TR-CM Cash position

Grouping: Subledgers
Subledger accounts
05/01/YY
E2 Domestic customers
Level 1 loan

Grouping: Banks
Bank accounts
DBGIRUN 113105

150,000.00

Level 1* loan

05/01/YY
150,000.00

SAP AG 1999

SAP AG

AC815

5-13

Disburse Contract: Posting Log


Posting log
Posting log
05/01/YY 1600001648
document:
05/01/YY
CoCde
PK

FI document: 1600001648

FI

Account

0001
14

100036 Brown

40
11

100036 Brown

40
01

100036 Brown

50
01

100036 Brown

50

150600

Loan disbursement recon. account

150,000.00 C

46020

Other loans

150,000.00 D

150600

Loan disbursement recon. account

50,000.00 C

194200

Technical clearing

50,000.00 D

150600

Disc. receivable recon. account

3,000.00 D

99000

Deferred income

3,000.00 C

150000

Receivables recon.account

500.00 D

299100

Other financial revenue

500.00 C

0001 A_Loan disbursement


3380 A_ Credit memo from drawings
0165 A_Discount debit position
3145 A_Process. charges debit position

04

100036 Brown

150600

Loan disbursement recon. account

150,000.00 D

3375 A_Disbursement reduction

02

100036 Brown

150600

Loan disbursement recon. account

149,500.00 D

3375 A_Disbursement reduction

02

100036 Brown

150600

Loan disbursement recon. account

146,500.00 D

3375 A_Disbursement reduction

11

100036 Brown

150600

Loan disbursement recon. account

149,500.00 C

0001 A_Loan disbursement

11

100036 Brown

150600

Loan disbursement recon. account

146,500.00 C

0001 A_Loan disbursement

11

100036 Brown

150600

Loan disbursement recon. account

96,500.00 C

0001 A_Loan disbursement

194200

Technical clearing

53,500.00 C

150300

Disc. receivable recon. account

3,000.00 C

194200

Technical clearing

3,000.00 D

150000

Receivables recon.account

500.00 C

194200

Technical clearing

500.00 D

50
12

100036 Brown

40
12

100036 Brown

40

3365 A_Discount withheld

SAP AG 1999

The above illustration shows a posting log generated on disbursement of a contract.

SAP AG

AC815

5-14

Integration: Cash Management - Overview (1)

TR - LO

With cust. accts

TR - CM

Application, offer
Contract

Planned contract disbursement


(planned record)

Subledgers: Level 1, group E2

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

SAP AG 1999

Above example: Posting via customer accounts


Level 1: Inserted from loan Customizing; all other levels come from the FI account master records.

SAP AG

AC815

5-15

Integration: Cash Management - Overview (2)

TR - LO

Posting without cust. accts:


(Without PR)

TR - CM

Application, offer
Contract

Planned contract disbursement


(planned record)

Level 1*, bank account

Disbursement posted (act. record)

Level 2*, bank clearing account

Interest/repayment planned rec.

Level 1*, bank account

Current account statement

Level 3*, bank account

SAP AG 1999

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.

SAP AG

AC815

5-16

Customizing: Integration with FI

FI General
ledger

Loans
subledger

FI Subledgers

G/L accounts
Customer master data
Screen control
Document types
Posting keys
SAP AG 1999

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.

SAP AG

AC815

5-17

FI Posting Keys for Loans

Implementation Guide for R/3 Customizing

01

Financial Accounting
Financial Accounting Global Settings
Document

12
05
15

Line Items
Controls
Define Posting Keys

07
17

SAP AG 1999

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.

SAP AG

AC815

5-18

Accounting Customizing: Overview

Financial Accounting
G/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
SAP AG 1999

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.

SAP AG

AC815

5-19

Customizing: Product Types and Accounting

Product type
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
Define default for withholding indicator
for disbursement
...
SAP AG 1999

SAP AG

AC815

5-20

Customizing: Status and Accounting

Status
(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).

SAP AG 1999

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).

SAP AG

AC815

5-21

Assign Flow Types to Condition Groups for Each


Application

Flow Types

Per cond. group

(3)

Customizing
F4

001
Disbursement:
Settlement
002
Disbursement:
Incidentals
...

Ap.Fn. FType

Name

Pmnt tr. ID.

001

0001

A_Loan disbursement

...

...

...

...

Application
Disbursement: Settlement
Flow type

0001

Text
Payment date

Payment
05/01/YY

SAP AG 1999

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.

SAP AG

AC815

5-22

Disbursement: Offsetting Flow

Flow types

009

Company code

011

0001
F4

Relationships

042

Incoming payment from amnts


withheld from disbursements
Change in disbursement
obligation from withholding:
Debit position
Change in disbursement
obligation from withholding:
Credit position

Customizing

009

011
042

FTyp

Name

RFlT

Name

0110

A_Interest debit position

3310

A_Interest withheld

0165

A_Discount debit position

3365

A_Discount withheld

3145

A_Processing charges

3345

A_Proc. charges withheld

0001

A_Loan disbursement

3375

A_Reduc. in loan disb.

9010

A_Purchase order

9310

A_Purchase reduct. BNL

0001

A_Loan disbursement

3385

A_Incr. loan disbursement

9010

A_Purchase order

9320

A_Purchase incr. BNL

SAP AG 1999

SAP AG

AC815

5-23

Disbursement: Flows for Drawings

Flow types
-> Functions -> IP Postprocessing

Company code

0001

Flow types IP/Rejections


ProcCat IP

FTyp

Name

19

3380

A_Credit note from drawing

F4
ProcCat IP
19
.

Credit notes for drawings

SAP AG 1999

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.

SAP AG

AC815

5-24

Customizing: Conditions and Accounting

Conditions
Defining condition types
CTyp Name
200
201

RefC

FTyp1 FTyp2 Fcat

FiMa

0110
0110

TZ
TZ

A_Nominal interest var.


A_Nominal interest
...

TZ
TZ

Payt

(4)Payment transaction (= customer posting?)


Flag = Yes = Posting possible with/without customer
No flag = No = Posting without customer

SAP AG 1999

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).

SAP AG

AC815

5-25

Flow Types and Accounting

Flow types control:


The financial mathematical basis for calculating
the cash flow (calculation type)
The effective interest calculation
Integration with Treasury Cash Management
The posting record in the G/L
(5) Account determination

SAP AG 1999

SAP AG

AC815

5-26

Posting Loans: Overview

Account determination
Example: Loan disbursement, 1) With customer acct 2) Without customer acct
Posting record (= posting specifications)
From (40) Bal. sheet acct

Here: Fm 46020
Other loans

to

1) (14) Reconciliation acct/customer


2) (50) Bank clearing account

to

1) 150600 Reconciliation acct


Disbursement obligation
2) Bank clearing account

Bal. sheet account

...UNI
...UNI
... UNI

Reconciliation acct/bank clearing acct

from

from

from

Transaction

Acct assignment ref.

SAP AG 1999

Account
determination

- fixed -

Transaction or
account determination
- changeable -

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.

SAP AG

AC815

5-27

Posting Loans Given and Taken

Loans given

Posted to customer
accounts

Not posted to customer


accounts

Loans taken

- No
- Yes
- No payment details
(PD)
- Use of FI payment program
- Yes
- PD can be used
- Payment program for
payment requests can
be used

- Yes
- PD can be used
- Payment program for
payment requests can
be used

SAP AG 1999

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.

SAP AG

AC815

5-28

Customizing: Account Assignment


Reference/Account Determination

Account assignment reference


Maintain definition
Control automatic determination

(5) Account determination


Maintain definition

SAP AG 1999

SAP AG

AC815

5-29

Account Assignment Reference

Company code TR00


AcctAssRef
33A < 1
33A > 1
.
.
.

Short text
Mortgage loan assignment (term < 1 year)
Mortgage loan assignment (term > 1 year)

Details
.
.

.
.
46020

G/L account

SAP AG 1999

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.

SAP AG

AC815

5-30

Account Determination: Posting Specifications (1)


Accounts Symbols
Posting specs
Flow type
0001
Debit
Credit
Document type
Flow type
Debit
Credit
Document type
Flow type
Debit
Credit
Document type
Flow type
Debit
Credit
Document type

40
14
DA

Payment trans.
1
2.2.0

40
50
SA

40
50
SA

Payment trans.
1
3.1

40
50
SA

Comp

Balance
Bank (replacement)
Posting category
Payment trans.

0110

Balance
Bank clearing
Posting category

1
3

0001

Comp

Balance
Disburse. oblig. Cust.
12
Posting category

Payment trans.

0001

5.1.2
4.1.1

Interest rec.
Interest received
Posting category

13
Comp

13
Comp

54

SAP AG 1999

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.

SAP AG

AC815

5-31

Account Determination: Posting Specifications (2)

Posting specifications
Posting category
Flow types
FTyp
0001

Name
A_Loan disbursement

:
:
0110 A_Interest debit position

:
:

Payment transaction
1 Not posted to cust. accts, no house bank
2 Not posted to cust. accts, house bank acct
X Posted to customer accounts

PT

Name

11
12
13
14
15
21
.
31
32
33
34
35
41
42
43
44
45
51
:
:

Bal. sheet to bal. sheet


Bal. sheet to subledger
Balance sheet to bank
Balance sheet to profit/loss
Bal. sheet to G/L account
Subledger to bal. sheet
Bank to balance sheet
Bank to subledger
Bank to bank
Bank to profit/loss
Bank to G/L account
Profit/loss to balance sheet
Profit/loss to subledger
Profit/loss to bank
Profit/loss to profit/loss
Profit/loss to G/L account
G/L account to balance sheet

SAP AG 1999

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.

SAP AG

AC815

5-32

Account Determination: (Account) Symbols


Symbols

AccountsPstg specs
Application
Acct symbols
Acct symbol
:
#
1
3
3.1
4.1.1
:
:

0101

Treasury: Loans

Name
:
Determine automat.
Balance
Bank clearing
Bank (replacement)
Interest received
:
:

SAP AG 1999

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.

SAP AG

AC815

5-33

Account Determination: Account Assignment


Accounts
Chart of accts

INT

Pst specs Symbols


Application

0101

Chart of accounts

INT

Treasury: Loans
International chart of accounts

Account assignment
Acct symbol
Acct assignment ref.
:
:
3
+
+
3
3.1
+
+
4.1.1
+
:
:

Currency

+
USD
+
+
+

G/L acct

113105
113155
++++++++++5
273100

SAP AG 1999

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.

SAP AG

AC815

5-34

Postings: Account Determination


Mortgage loan: 25 years, disbursem. 150,000.00 -> acct assignment ref. 30A>1
May 01
May 01

Other loans
Cleared disburs.

0001

150,000.00
150,000.00

Balance sheet account


accord. to acct assgt ref.

Posting specific.

Flow type

0001 X

40 Debit

Balance

14 Credit Disbursem. oblig.

Other loans

Disb.
Disb. clrg acct 150600

46020

D
150,000.00

Disbursement
obligation
5000.00

SAP AG 1999

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.

SAP AG

AC815

5-35

Determination of Account Assignment Reference Overview


Charact. 1

Charact. 2

Value groups > Values


1

A
B
C

D
E

.
.
.

(All) combinations of value groups


Selection for required automatic
determination of the account assignment reference

Assign account assignment references to the


combinations selected
SAP AG 1999

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.

SAP AG

AC815

5-36

Determination of Account Assignment Reference:


Characteristics

Company code

m
Exa

ple

0019

Contract type

Selectable characteristics

1 Loan

Product type

300

Business partner number

Mortgage

Posting system ind. for borrower's note loans


Loan type indicator
Loan class indicator

Selected characteristics

Object type

Loan maturity

Purpose of loan

Product type

Currency....
....

Double-click
Values
Value
Value groups

Comment

01

Due in less than 1 yr

02

Term: 1 -3 years

Less than 1 yr

03

Term: 3 -5 years

1-5 years
More than 5 yrs

Remaining

ValGrp

Comment

SAP AG 1999

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.

SAP AG

AC815

5-37

Determination of Account Assignment Reference:


Allocation
Acct assignment ref. allocation
Combination
ValGrp

Select and
AcctAss

ValGrp Product type

Maturity

0001

Less than 1 year

0001

Mortgage given

0001
0002

Less than 1 year


1- 5 years

0002
0001

Mortgage taken
Mortgage given

0002

1- 5 years

0002

Mortgage given

0003

More than 5 years

0001

Mortgage given

0003

More than 5 years

0002

Mortgage given

Copy
ValGrp

ValGrp Product type

Maturity

Ref
30A<1

0001

Less than 1 year

0001

Mortgage given

30B<1
30A 1-5

0001
0002

Less than 1 year


1- 5 years

0002
0001

Mortgage taken
Mortgage given

30B 1-5

0002

1- 5 years

0002

Mortgage given

Enter and save


SAP AG 1999

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.

SAP AG

AC815

5-38

Link to Customer Accounts

Main borrower
Role '0100'

=
One/several loans
Accounting
Postings

Debit positions

Incoming payments

SAP AG 1999

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.

SAP AG

AC815

5-39

Posting via Customer Accounts

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:

Product type (1)


Status (2)
Flow types (3)
Conditions (4)
Account determination (5)
Business partner (6)
SAP AG 1999

SAP AG

AC815

5-40

Posting to Customer Accounts: Business Partner


Business partner master record: Company code data

Reconciliation account
Cash Management group
Interest indicator
Payment methods
Grouping key for payments
Terms of payment
Dunning data

SAP AG 1999

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.

SAP AG

AC815

5-41

Customizing: Disbursement Plausibility Checks

-> Functions -> Disbursement -> Define plausibility checks

PTyp PlausiCat
30A

File

Object

Enc.

Condition

Partner

SAP AG 1999

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.

SAP AG

AC815

5-42

Data of Person Authorized to Draw


or
Partner overview

Partner overview
- Main borrower

- Main borrower
- Person authorized to draw

Disbursement to

Disbursement to
- Main borrower
- Person authorized to draw
Data:

- Main borrower
- Person authorized to draw

- Manual
or
- Default from
partner overview

Data:

- Manual

Customizing: If plausibility check for partner:


Only possible: Data:

- Default from
partner overview

SAP AG 1999

SAP AG

AC815

5-43

Payments to Third Parties


Contract
Partner

Role
0121
Other loan part. with cust.acct
9000000004
Black

PTyp
PS1

PM

Conditions
Eff. from
Agent commission 05/15/YY

Percent.
0.5000

Due date
15/15/YY

Detail screen
Payer/Payment data
Partner
Partner bank type 0009000000004
Payment method PS1

Black

SAP AG 1999

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.

SAP AG

AC815

5-44

Customizing: Payments to Third Parties

Role category: 0121 'Other loan partners with cust. acct'


Transaction Management

Flow Types

Payments to third parties


Transaction Management

Product Types

Company Code-Dependent Settings for Product Type


'A' : Dunning block

SAP AG 1999

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'.

SAP AG

AC815

5-45

Customizing: Integration With TR Cash


Management

Implementation Guide for R/3 Customizing

Treasury
Cash Management

TR - CM
Define account groups
Planning levels
(bank/subledger)
Planning groups

TR - LO Loans
Flag flow types as relevant
for Cash Management
Assign planning levels

Treasury Management
Securities
Loans

SAP AG 1999

SAP AG

AC815

5-46

Integration: Cash Management - Loans I

Define Flow Types


Flow types
FTyp
FTyp

Double-click

Name

A_Loan disbursement
1000 Purch.
0001
0110 A_Interest debit position
0125 A_Annuity rep. debit pos. Rec.

...
Flow type

0001

A_Loan disb.

Grouping

Inflow

Flow category

Posting
Posting
control

Incoming
pmnt
Other
x

Relev. to CM

SAP AG 1999

You need to flag the flow types for the loan activities you want to include in Cash Management as
'Relevant to CM'.

SAP AG

AC815

5-47

Integration with Cash Management - Loans II

Company code

0001

Treasury : Assign Planning Levels


PTp Sts ACat

Level (bank known)

Level (bank unknown)

30A 60
31A 60

0
0

LB
LB

LP
LP

31B 60
32A 60
33A 60

0
0
0

LB
LB
LB

LP
LP
LP

:
:

:
:

SAP AG 1999

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).

SAP AG

AC815

5-48

Postings: Disbursement to Borrower

Loans

Customer

1 150,000

146,500

Others
3,500 1

Loan is flagged as 'disbursed' in the system.


Borrower has not yet received the payment.

SAP AG 1999

(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.

SAP AG

AC815

5-49

Planned Record -> Actual Record


Cash flow in contract
Payment date

Settlement amt

Name

P FTyp

05/01/YY

146,500

Loan disb.

P 0001

'Planned
record'

Post disbursement
Cash flow in contract
Payment date
05/01/YY

Settlement amt
146,500

Loan disbursed
Name

P FTyp

Loan disb.

0001

'Actual
record'

Start payment program


SAP AG 1999

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.

SAP AG

AC815

5-50

Automatic Payments: Payment Program

Master

Payment
control

Current
parameters

Documents

Proposal run

Proposal data set

Edit
proposal

Payment run
Print data set
Print program
Check

Transfer

Payment

Payment

advice note

summary

Payment
medium
SAP AG 1999

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.

SAP AG

AC815

5-51

Postings: Payment Program for Disbursement

Loans

Customer

1 150,000

2 146,500

146,500

Others
3,500

Bank account

Bank clearing
3 146,500

146,500

146,500

SAP AG 1999

(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.

SAP AG

AC815

5-52

Disbursement: Unit Summary

You are now able to:


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

SAP AG 1999

SAP AG

AC815

5-53

Disbursement Exercises
Unit: Disbursement

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

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.

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.

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

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).

SAP AG

AC815

5-54

Disbursement Solutions
Unit: Disbursement

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


Enter a loan disbursement
Check the account assignment reference determination

Disbursement
1-1

Create a new contract using the copy function.

Accounting
Treasury
Loans
Transaction Management
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.

SAP AG

AC815

5-55

To carry out a disbursement for your copied loan:

Accounting
Treasury
Loans
Transaction Management
Mortgage Loan
Contract
Disburse
Enter incidental costs with flow type 3145 by selecting the corresponding
function.
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.

SAP AG

AC815

5-56

Customizing: Determination of Account Assignment Reference:

Treasury
Treasury Management
Loans
Functions
Accounting
General Ledger Update
Control Automatic Determination of Account Assignment Reference
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
Treasury Management
Loans
Functions
Accounting
General Ledger Update
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

AC815

5-57

Payments Due

Contents
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

SAP AG 1999

SAP AG

AC815

6-1

Payments Due: Unit Objectives

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


Post incoming payments using the manual bank
statement
Explain how incoming payments are processed in
the system (correct amounts, overpayments,
underpayments)

SAP AG 1999

SAP AG

AC815

6-2

Course Overview Diagram

Loans Management
within SAP Treasury
Course overview

Process flow for


loans given
Loan contract
Disbursement
Payments due

Contract currency
changeover

Closing operations
Special cases

Complete process
including master data
Rollover
SAP AG 1999

SAP AG

AC815

6-3

Payments Due: Business Scenario

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.

SAP AG 1999

SAP AG

AC815

6-4

Mortgage Loans - Processing Seq./Contract

Transaction management

Portfolio/Accounting

Interested
party

Disbursement

SAP AG 1999

SAP AG

Appl.
Appl.

Offer

Contract

Other
activities

Rollover

- Create loan
- Business partner
- Conditions
- Correspondence
- Disburse/post loan
- Integration with CM
- Integration with FI
- Post amounts due
- Incoming payment postprocessing

AC815

6-5

Example Business Process: Debit Position


Application/Offer/Contract

Disburse contract

Payment program

Post interest payments/repayments due

Debit position

Payment program and/or bank statement


SAP AG 1999

SAP AG

AC815

6-6

Debit Position: Mass Processing <-> Per Contract

Debit position

Carry out posting: Per contract


--> Post individual loan

Carry out posting: Mass processing


--> Post planned records

SAP AG 1999

SAP AG

AC815

6-7

Posting Planned Records - General Description


Cash flow
MM/DD/YY
MM/DD/YY

Interest
500 UNI
Repayment 1,000 UNI

P
P

Post planned records on due date: P --> I


Due items are generated, open items are created in the customer,
(debit posting) --> Debit position
Cash flow
MM/DD/YY
MM/DD/YY

Interest
500 UNI I
Repayment 1,000 UNI I

Receivables recon. acct


- Customer

Bal. sheet acct


1,000

1,500

Interest received
500

SAP AG 1999

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

AC815

6-8

Automatic Debit Position Run - Tasks

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)

SAP AG 1999

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.

SAP AG

AC815

6-9

Preparation for the Debit Position Run: Update


Planned Records

Company code
Product type
Loan number

0001
30A

To
To
To

Only loans disbursed


Selection of loans by currency and interest calc. types
LC loans with reference interest rates
LC loans with other interest calculation
Loans acc. to planned principle
Loans acc. to actual principle
Only display loans not updated

SAP AG 1999

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.

SAP AG

AC815

6-10

Automatic Debit Position Run: Post Planned


Records

Company code

0001

Contract number

10000000

Partner
Product type
Payment method
Up to & incl. due date

Posting date

06/30/YY

Document text

Loan debit position

Log
Test run

SAP AG 1999

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.

SAP AG

AC815

6-11

Automatic Debit Position Run

Posting log
Loan debit position
09/01/YY
CoCd Document No.
PK

Account

0001

Date

Doc.type Contr.type

Contract number

G/L

Currency

06/30/YY DA

FType

0000010000000

01

10000000
Brown

150200
Interest receivables

UNI

1,720.83 D

0110

01

10000000
Brown

150100
UNI
Repayment receivables

639.05 D

0120

50

273100
Interest received

UNI

1,720.83 C

50

46020
Other loans

UNI

639.05 C

SAP AG 1999

The above is an example of a posting log for the repayment and interest postings.

SAP AG

AC815

6-12

Postings: Automatic Debit Position

Loans
1 150,000

Customer

639.05 4

2 146,500
4

146,500

2,359.88

1,720.83 4

Bank account

Bank clearing
3 146,500

Others

Others
3,500

146,500

146,500

SAP AG 1999

(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 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.

SAP AG

AC815

6-13

Accounting - Evaluations I

Customer line items


Evaluate

Customer acct analysis

SAP AG 1999

In Loans Management, you can trigger these two FI functions for evaluating customer accounts.

SAP AG

AC815

6-14

Example Business Process: Incoming Payment


Application/Offer/Contract

Disburse contract

Payment program

Post interest payments/repayments due

Payment program and/or bank statement

Incoming payments

SAP AG 1999

SAP AG

AC815

6-15

Sources of Incoming Payments for Loans

Credit postings for loans given result from:


Direct debits
Transfers from the borrower
Manual entries (manual debit position), for example, waivers
Automatic entries generated within the Loans application,
for example, an overpayment write-off

SAP AG 1999

SAP AG

AC815

6-16

Payment Options: Bank Statement


Payment received from customer

By transfer
or
by check

By direct debit

Bank statement

Payment program
Bank statement

Automatic bank statement / Manual bank statement

Bank

Bank

File
Application
of funds

~~~~
~~~~
~~

SAP AG 1999

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.

SAP AG

AC815

6-17

Debit Memo Procedure

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)

SAP AG 1999

SAP AG

AC815

6-18

Automatic Payments: Payment Program

Master

Payment
control

Current
parameters

Documents

Proposal run

Proposal data set

Edit
proposal

Payment run
Print data set
Print program
Check

Transfer

Payment

Payment

advice note

summary

Payment
medium
SAP AG 1999

SAP AG

AC815

6-19

Incoming Payments by Direct Debit

Loans
1

150,000

Customer

639.05 4

2 146,500
4

2,359.88 2,359.88 5

Interest received

Others
3,500

146,500

1,720.83 4

Bank account

Bank clearing
3 146,500

146,500

5 2,359.88

2,359.88

6 2,359.88

146,500

SAP AG 1999

(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 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 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.

SAP AG

AC815

6-20

Bank Statement

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 and
subledgers where necessary.

SAP AG 1999

SAP AG

AC815

6-21

Incoming Payment Distribution: Process

Manual/Electronic Bank Statement

Incoming
payment

Assignment
to
customers/
finance project
or
contract

Clearing
of
open
items
determined

***

*** in accordance with the field "IPD control" in the loan basic data

SAP AG 1999

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.

SAP AG

AC815

6-22

Incoming Payment Distribution: Level

Business partner "Brown", customer 100036

Finance project A

Contract 1

Contract 2

Finance project B

Contract 3

Contract 4

Finance project C

Contract 5

Contract 6

SAP AG 1999

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.

SAP AG

AC815

6-23

Incoming Payment Distribution: Overview

Incoming payment (credit memo in acct statement)


Customer open items

OI filter at contract, finance project,


or customer level

Prioritization rules defined


Incoming payments distribution
SAP AG 1999

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).

SAP AG

AC815

6-24

Assignment of Incoming Payments

Distribution to ...

Open
items

Receivables
cleared

OI clearing
and
residual items

Other
overpayment
or
qualified
overpayment

Outstanding
receivable

Other
credits

Rejection

Advance payment

Credits
for specific
purpose

SAP AG 1999

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.

SAP AG

AC815

6-25

Incoming Transfer: Example of a Manual Bank


Statement
G/L accounting
documents

Post
directly

Account
statement

Manual
entry

Interim data
set

Sub- ledger
accounting
documents
SAP AG 1999

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.

SAP AG

AC815

6-26

Examples of Incoming Payment Processing

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?

SAP AG 1999

SAP AG

AC815

6-27

Processing Incoming Payments (Case 1)

Case 1
The customer transfers the correct amount to cover the interest
and repayments due. How is this treated in the system?

SAP AG 1999

SAP AG

AC815

6-28

Processing Manual Bank Statements (Case 1)


House bank
Account ID
Statement number
Statement date
Controls
Beginning balance
Ending balance
Posting date
Sel. of payment advices

DB
GIRUN
1
0//01/YY

2,359.88
07/01/YY

Planning type
Statement date
Planning date from
Further processing
Bank postings only
Bank posting session
Subledger session

BAPO
SLPO

SAP AG 1999

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.

SAP AG

AC815

6-29

Entering the Items (Case 1)

Bank acct

110113100

G/L acct

113100 CoCde 0001

Currency

UNI

Bank statement items


Tran.
051

Value date Amount


07/01/YY

Credit memo

2,359.88

Customer

100000000

Client
transfer

Contract no.

Coll.inv.

10000000

Contract type
Loan contract

SAP AG 1999

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.

SAP AG

AC815

6-30

Incoming Payments by Bank Transfer (1)


Loans
1

150,000

Customer

639.05 4

2 146,500
4

5 2,359.88

2,359.88 2,359.88 5

1,720.83 4

Bank account

Bank clearing
3 146,500

Interest received

Others
3,500

146,500

146,500
2,359.88

5 2,359.88

146,500

Key:

5 2,359.88

Bank ledger session

5 2,359.88

Subledger session

SAP AG 1999

(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 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 debit
position run (post planned records) is used to create an open item in the customer account.
(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.

SAP AG

AC815

6-31

Customizing: Manual Bank Statement

IMG: Financial Accounting Bank Accounting


Transactions Manual Bank Statement

Business Transactions

Payment

Create Keys for Posting Rules


Assign Business Transactions
Define Posting Rules for Manual Bank Statements
Define Variants for Manual Bank Statements

AC805 Cash Management

SAP AG 1999

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.

SAP AG

AC815

6-32

Processing Incoming Payments (Case 2)

Case 2
The customer transfers more than is necessary to cover the
interest and repayments due. How is this treated in the system?

SAP AG 1999

SAP AG

AC815

6-33

Processing Manual Bank Statements (Case 2)


House bank
Account ID
Statement number
Statement date
Controls
Beginning balance

DB
GIRUN
1
07/01/YY

Ending balance
Posting date
Sel. of payment advices

2,459.88
07/01/YY

Planning type
Statement date
Planning date from
Further processing
Bank postings only
Bank posting session
Subledger session

BAPO
SLPO

SAP AG 1999

SAP AG

AC815

6-34

Entering the Items (Case 2)

Bank acct

110113100 G/L acct

113100

CoCde

0001

Currency UNI

Bank statement items


Tran.

Value date

Amount

Customer

Contract no.

051

07/01/YY

2,459.88

100000000

10000000

Coll.inv.

SAP AG 1999

SAP AG

AC815

6-35

Incoming Payments by Bank Transfer (2)


Loans
1 150,000

Customer

639.05 4

2 146,500
4

Others

1,720,83 4

Bank account

Bank clearing
5 2,459.88

2,359.88 2,359.88
100.00

Interest received

3,500

3 146,500

146,500

146,500

2,459.88

5 2,459.88

146,500

Key:

5 2,459.88

Bank ledger session

5 2,459.88

Subledger session

SAP AG 1999

(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 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 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.

SAP AG

AC815

6-36

Customizing: Incoming Payment Distribution

IP Distribution
IP Distribution OI Sort

I.

Define Evaluation Criteria


Define Priorities
Define Sort Sequence
II.
IP Distribution AP/OP
Define Evaluation Criteria
Assign Flow Type to Evaluation Criteria
Evaluation Criteria Management
Other Settings
Payment Level
Limit Value/Amounts Equal
Assign Account Statement

SAP AG 1999

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 I.

Incoming payment (IP)


Contract number specified?

No

Rejection

No

Rejection

Yes

Assignment to IP level?

Yes
I.

Open items?
Yes

No

SAP AG 1999

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6-38

Incoming Payment II.

Open items?
Yes

II.
No
Do planned
records exist?

IP = OI?

Yes

No

Yes

No
IP limits observed?

IP = Planned record?

Yes

No

No
IP = OI

IP < OI

Yes

IP > OI

Distribution rules

OI clearing
SAP AG 1999

SAP AG

OI clearing
and
residual items

OI clearing
and
overpayment*

Overpayment*

AC815

Overpayment*

Overpayment*

Advance
payment

6-39

Incoming Payment Postprocessing


Rejections/overpayments

Menu:

Rejections/Customer accounts/Clear overpayments

Manually

Automatic

(incl. clearing
other overpayments)

Clear customer open items

(incl. clearing
qualified overpayments)

Create overpayment

Create advance payment

Carry out refund by bank transfer

SAP AG 1999

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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Processing Incoming Payments - Case 2

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?

SAP AG 1999

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IP Postprocessing - Customer Accounts

Open items

Advance pyment Refund transfer

Loans
Contract no.

10000000

Incoming payment information


To be cleared
To be assigned

100.00
0.00

IP Name Approp. of other overpymnts


Val. date 09/01/YYYY

Assigned items
PT
05

PT Name
Customer
Refund transfer
100000000

Contract no.
DT
Text
1000000
4590

Accept. amount
100.00

Appropr. refund transfer AP/OP

SAP AG 1999

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.

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Incoming Payment Postprocessing: Example


Loans
1 150,000

Customer
639,05 4

2 146,500
4
6

3,500

2,359.88 2,359.88 5
100.00*
100.00

1,720.83 4

Bank account

Bank clearing
5 2,459.88

Interest received

Others

3 146,500

146,500

146,500

5 2,459.88

146,500 3

2,459.88 5
100.00

Key:

5 2,459.88

Bank ledger session

5 2,459.88

Subledger session

SAP AG 1999

(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 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 debit
position run (post planned records) is used to create an open item in the customer account.
(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.

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Customizing: Flow Types for Incoming Payments

Flow type

4530 A_Appropr. of qual. OP (IP-D)

Grouping
Flow category

ZVZ

Assets/Liab.

Posting
...
IP Clearing

03

Lending business

F4

! Relev. to CM

02
03
04
05
06
07
08

Advance payments
Qualified overpayment
Other overpayment
Transfer qual. overpmnt
Transfer other overpmnt
Refund by bank transfer
Transfer advance pmnt

SAP AG 1999

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.

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Offsetting Flows
Company code

001
009

0001
F4

Relationship

013
023
....

Incoming payments
IP from amounts withheld
from disbursements
Reduction of overpayment
IP from reduced overpayment

Customizing
FTyp

Name

RFT

Name

0110

A_Interest debit position

3210

A_Interest IP

0125

A_Annuity rep. debit position 3225

009

0110

A_Interest debit position

3310

A_Interest withheld

013

4530

A_Appropr. qual. OP (IP - D)

4531

A_Reduce qual. overpymt

023

0110

A_Interest debit position

4535

A_IP fr. clrg qual. OP (int.)

001

A_Annuity repayment IP

SAP AG 1999

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.

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Customizing: IP Postprocessing

Company code

0001

Flow types IP/Rejections


ProcCat IP

FTyp

Name

01

4505

A_Rejection appropriation

4590

A_Apportion refund tr. AP/OP

:
09

SAP AG 1999

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.

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Accounting - Evaluations II

Account statement
Evaluate

Posting journal

SAP AG 1999

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.

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Evaluations: Loan Account Statement


Account statement

Date

07/01/YY

From: 01/01/YY to: 12/31/YY


10000000

Brown/ 1 Main Street / Washington DC 20433


Mortgage loan
Debit

Name

PostDte

ValueDte

Doc.no.

R FTyp

05/01/YY

05/01/YY

0001

Disbursement

05/01/YY

05/01/YY

0165

Disc. debit position 3,000

05/01/YY

05/01/YY

3365

Discount withheld

06/30/YY

06/30/YY

14

0110

Int.debit position 1,720.83

06/30/YY

06/30/YY

14

0125

Annuity rep.

FI document

Credit

150,000
3,000
639.05

Loan
document

SAP AG 1999

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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Debit Position: Unit Summary


1. Generating receivables due

- Debit position run preparation: Planned record update


- Execute debit position run
- Debit position run postprocessing: Automatic overpayment clearing

2. Amount due is paid by customer


- Collect receivables due: Start payment program
or
- Wait for incoming payment by check/transfer

SAP AG 1999

Before you carry out the debit position run, you have to update the planned record amounts for thirdparty 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.

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Open Items

Open items

Clearing by
incoming payment

Interest on
arrears/dunning

OI closed

Full waiver
Partial waiver

OI closed

Complete
write-off

OI closed

SAP AG 1999

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.

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Interest on Arrears: Overview

Customer open items due (dunned or not dunned)

FI/loan: Determination of interest on arrears: Overdue items

Loan: Process the batch input sessions created


(to enter the interest on arrears key date in the customer master record)

Loan: Post interest on arrears

Interest on arrears is an open item in the customer account

SAP AG 1999

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.

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Overdue Items: Determination of Interest on


Arrears
Calculate Interest on Arrears
Customer selection
Customer account
Company code

to
to

Other accruals/deferrals
Calculation period
Interest indicator

to
to

Posting control
x

Interest to Fin. Assets Man.


Post interest settlements
Maintain master records

Batch input session name

RFDUZI00

SAP AG 1999

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.

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Posting Interest on Arrears


Post Interest on Arrears

I
Posting date

06/16/YY

Document date

06/16/YY

Due on

07/01/YY

Text
Flow type

Interest on arrears

Delete entries up to

SAP AG 1999

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.

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Dunning: Overview

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

SAP AG 1999

In the Loans area, dunning is supported for loans given that are based on customer accounts.

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Influencing Factors for Dunning

FI
Customer/vendor
master record
General data:
Address
Controls
Payment
transactions
Company code
data:
Acct mgt
Payment trans.
Correspondence

Document
Baseline date
Payment
terms
Dunning date
Dunning
levels
Dunning
block

Loans

Basic
parameters

Current
controls

Dunning levels Date of


dunning notice
Charges
Minimum
amounts
Dunning text

Account
selection

Grace days

Company code
selection

Contract
data

Customizing

Dunning
settings
for contract

Settings for
dunning in
the Loans
IMG

Dunning data

SAP AG 1999

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.

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Dunning: Terms

Dunning area

Dunning procedure
Dunning levels
Dunning key

Dunning block
Dunning grouping

SAP AG 1999

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.

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Loan: Business Partner Overview

Borrower

Brown/ 1 Main Street / Washington DC 20433

Partner list
Name
Main
borrower

Partner
900000001

Name/address

Brown/ 1 Main Street / Washington DC 20433

BkTy PM
Customer
1000000000
R D

Select partner (or "double-click")

Treasury - Business Partner Management


Partner
Classification

900000001
Natural person

Application Mortgage loan

SAP AG 1999

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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Posting to Customer Accounts: Business Partner


Business partner master record: Company code data

Reconciliation account
Cash management group
Interest indicator
Payment methods
Grouping key for payments
Terms of payment
Dunning data

SAP AG 1999

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.

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Contract - Correspondence
Basic
Basicdata
data

Conditions
Conditions

Collateral
Collateral

Dunning
ManDunnLvl
Dunning per
No dunning

D.level

CorresponCorrespondence
dence

External acct statement


Key date
Generation frequency
Generate upon request
Statement number 0

Loan contract

Dunning history
D.area

Objects
Objects

Interest certificate

Last dunn.

Key date
Processing type
Generate int. cert. in annual batch

SAP AG 1999

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, ...).

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Dunning Run
Loan
selection

Master

Basic
parameters

Current
controls

Documents

- Execution Process

Dunning
proposal

Dunning level
Dunning block
Test print

- Print -

Dunning
notices

Dunning
list

SAP AG 1999

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.

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Customizing: Financial Accounting Dunning


-> Financial Accounting -> Accounts Receivable -> Business Transactions ->
Dunning

Dunning procedure
Basic parameters

Dunning levels

Min. amounts

Dunn. charges

Dunning texts

Company code data

Sort fields

Sender details

Dunning areas

Dunning keys

Dunning block reasons

Interest

Dunning grouping

SAP AG 1999

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Customizing: Dunning - Loans (1)

Company Code-Dependent Settings for Product Type


Basic settings
Number range

01

Internal

Sample recNoRg

Dunning active

No. char.

Assign Flow Types to Condition Groups for Each Application


App.fun. FTyp

Name

281

3155

A_Dunning charges debit position

282

3150

A_Dunning interest debit position

Payt trans. ind.

SAP AG 1999

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).

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6-62

Customizing: Dunning - Loans (2)


_

Loans
+
_
+

Functions
_

Dunning
I. Basic Settings
II. Define Manual Dunning Level
III. Exclude Flow Types from Dunning Run
IV. Assign Dunning Parameters and Limit Amount to
Applic./Role Cat.
V. Flag Payment Methods for Incoming Payments as
Dunnable
VI. Assign Forms for Loans Dunning to Dunning Level
VII. Define Forms for Legal Dunning Procedure

SAP AG 1999

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.

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Customizing: Dunning - Loans (3)


I. Basic Settings

Summarization level for dunning letterx

PTyp Text
30A Mortgage loan

F4

DS

2 FP

DS Short text
Loan contract
FP Finance project
BO Main borrower

Posting var. for dun. charges/int. fr. dun. run x


B

Short text

1
2

No posting of dunning charges and interest


Smallest contr.no. of dunn. summariztn level
Individual using flag on contract

VI. Dunning Parameters and Limits


Assign role category to application

Basic setting:
Limit dunning level

Fix limit amount for currency


App. Appl. description

RC

Name of role cat.

0010 Mortgage loan

0100 Main borrower

0010 Mortgage loan

0200 Guarantor

0010 Mortgage loan

0201 Alternative payer

Detail
Default:
Dunning letter
Dunning charges
/interest payer

SAP AG 1999

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).

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Open Items: Waiver/Write-Off

Cash flow

Contract data

Overdue items

10000000

Loan

Correspond.

Flows
Flow type

Text

Due on

Sett. amount

Curr.

IP

UNI

21

3415

Verzicht Tilgung

09/30/YY

969.75

P
1

Overdue items
M FType Name
0125 Annuity rep.

Due on

PostDate

09/03/YY 09/03/YY

Amount
969.73

Curr. P P M
UNI

Ref. doc.
000000055

SAP AG 1999

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.

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AC815

6-65

Open items: Posting

Posting log
10/15/YY
CoCde
PK

Doc. number
Account

0001
40
17

1000000000
Charles Brown

Date

Doc. type
G/L

ContrType

Contract number
Curr.

10/15/YY

DZ

0000010000000

204000
Other expense
150100
Repayment receivables

Flow type

UNI

969.75 D

UNI

969.75 C

3415
Repayment waiver

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6-66

Customizing: Waiver/Write-Off Debit Position

Assign flow types to application function


App.fun. FTyp
202
203

3415
3510

Relationship

Name

Payt trans. ind.

A_Repayment waiver
A_Interest write-off

025 Waiver

1
1

026 Write-offs

Assign offsetting flows

025
026

FTyp

Name

0125
0110

A_Annuity rep.
3415
A_Int.debit position 3510

RFT

Name
A_Repayment waiver
A_Interest write-off

SAP AG 1999

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.

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6-67

Payments Due: Unit Summary

You are now able to:


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)

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AC815

6-68

Payments due

Exercises

Unit: Payments Due

Automatic debit position run for interest payments and repayments

You want to generate the open items for the expected interest payment
and repayment using the automatic debit position run.

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

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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?

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6-69

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.

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:

SAP AG

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)

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6-70

2-2

Enter the incoming payment item in the account statement.

Save your entries (in the account statement itself and then again
on the initial screen!).

2-3
3

Process your batch input sessions (only display errors).

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?

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Unit: Payments Due

Customizing

You want to check the settings in Customizing.

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?

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AC815

6-72

Unit: Payments Due

Automatic debit position run for interest payments and repayments

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

Carry out the debit position run for the next planned records due.

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6-73

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.

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.

Return to the contract and look at the cash flow. How is the cash flow affected by the
partial waiver?

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Payments Due Solutions


Unit: Payments Due
Topic: Automatic debit position run for interest payments
and repayments

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
Transaction Management
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.

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AC815

6-75

Unit: Payments Due


Topic: Incoming payments: Manual processing

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.

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.

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6-76

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
Transaction Management
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.

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Unit: Payments Due


Topic: Customizing

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
Treasury Management
Loans
Functions
Accounting
General Ledger Update
Define Account Assignment Reference
Solution: G/L account 46020
4-2

Assignment of flow type:

Treasury
Treasury Management
Loans
Transaction Management
Flow Types
Define Flow Types
Solution: Flow type 0110

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AC815

6-78

4-3

Assignment of account symbols:

Treasury
Treasury Management
Loans
Functions
Accounting
General Ledger Update
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

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6-79

Unit: Payments Due


Topic: Automatic debit position run for interest payments
and repayments

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.

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AC815

6-80

3.

Unit: Payments Due


Topic: Waiving open items

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.

Check the cash flow:

Accounting
Treasury
Loans
Transaction Management
Mortgage Loan
Display contract
Select Cash flow.

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Closing Operations

Contents
Accruals/deferrals
Valuation
Summarization
Information system
Customizing:
- Accruals/deferrals
- Valuation
- Information system

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AC815

7-1

Closing Operation: Unit Objectives

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


Enter accruals and deferrals for a loan portfolio
and valuate the portfolio for accounting purposes
Use summarization to improve performance
Use the information system

SAP AG 1999

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AC815

7-2

Course Overview Diagram

Loans Management
within SAP Treasury
Course overview

Process flow for


loans given
Loan contract
Disbursement
Payments due

Contract currency
changeover

Closing operations
Special cases

Complete process
including master data
Rollover
SAP AG 1999

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AC815

7-3

Closing Operations: Business Scenario

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.

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AC815

7-4

Mortgage Loans - Processing Seq./Contract

Transaction Management
Interested
party

SAP AG 1999

SAP AG

Appl.
Appl.

Offer

Contract

Portfolio/Accounting
Disbursement

- Create loan
- Business partner
- Conditions
- Correspondence
- Disburse/post loan
- Integration with CM
- Integration with FI
- Post amounts due
- Incoming payment(post)processing

AC815

Other
activities

Rollover

- Accrual/deferral
- Valuation
- Summarization
- Information system

7-5

Accruals/Deferrals: Overview

Accruals/deferrals:
- Reset procedure (for interest, discount)
- Difference procedure (for discount)
Resetting accruals/deferrals
(for reset procedure)

Reversing accruals/deferrals

SAP AG 1999

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.

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AC815

7-6

Accruals/Deferrals: Procedures/Methods

Accrual/deferral
procedures

Accrual/deferral
methods

Reset procedure

Linear (time-based)

(R/3 Loans Management:


for interest, discount)
Interest-based

Difference procedure

Financial mathematical*

(R/3 Loans Management:


for discount)

* Not for the Loans area

SAP AG 1999

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

AC815

7-7

Accruals/Deferrals: Reset Procedure

Accruals/deferrals for closing operations

01.11
Payment day
for interest1200 UNI

31.12
02.01
Accruals/deferrals
key date
Reset

30.04
Due date
for
interest payment
1200 UNI

11/01: Interest payment in advance, 1200 UNI


Financial statements created on 12/31 -> Accrual/deferral of 800 UNI
01/02: Accrual/deferral of 800 UNI is reset

SAP AG 1999

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:

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AC815

7-8

Accruals/Deferrals: Execute

0001
Company code
Product type
30A
Loan
10000001
.
Discount/premium acc./def.
Other accruals/deferrals

To
To
To

Accrual/deferral key date


12/31/YY

Test run

SAP AG 1999

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AC815

7-9

Customizing: Accruals/Deferrals I
Company code

0001

Flow type

0110

Acc./defer. method
Reset procedure

A_Interest debit position


Linear

Accrual reset

8301 A_Accr.: Other rec. to revenue


8321 A_Accr.: Revenue to other rec.

Deferral

8304 A_Def.: Revenue to def. income

Deferral reset

8323 A_Def. reset: Def. inc. to rev.

Accrual

Difference procedure

-> Check account determination


SAP AG 1999

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:

SAP AG

0110 Interest: Bank clearing to interest received


8301 Accrual: Receivable to interest revenue
8321 Accrual reset: Interest revenue to receivable

AC815

7-10

Customizing: Accruals/Deferrals II
Company code

0001

Flow type

0165

A_Discount debit position

Interest basis for flow type


Interest
0110

Name
A_Interest debit position

SAP AG 1999

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)

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AC815

7-11

Valuation: Balance Sheet Valuation

Foreign currency
loans
Balance sheet
valuation

Maintain exchange rates

Valuation log
Posting log

SAP AG 1999

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.

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AC815

7-12

Balance Sheet Valuation: Initial Screen


Company code

To

Contract number
Selections

To

Product type

To

...

Contract currency

To

...

...

To

...

Parameters for foreign curr. valuation


Key date
Valuation principle
Rate calculation
Simulation/test
Reset valuation

SAP AG 1999

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.

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AC815

7-13

Balance Sheet Valuation: Logs


Valuation log
CoCd Loan number
Currency
Rem. capital
Exch. rate date

Acquisition value
Curr. value
Old book value
Valuation gain/loss New book value

TR00 1000006
USD

30A
100,000
7,000.00-

Acquis. rate
Curr. price
Old book price
New book price

150,000.00
140,000.00
147,000.00
140,000.00

1.50000
1.40000
1.47000
1.40000

UNI

7,000.00 D

UNI

7,000.00 C

Posting log
40
50

280010
Write-off fin. asset
46020
Other loans

SAP AG 1999

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AC815

7-14

Valuation: Defining Principles

Valuation principle
Valuation method

One-step
1

Two-step
2

Valuation rules

Valuation loss

Valuation gain

- 0 Zero
- 2 To key date value

- 0 Zero
- 2 To acquis. value
- 4 To key date value

SAP AG 1999

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.

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AC815

7-15

Valuation: Write-Off/Write-Up Options

Valuation loss
0 No valuation loss
1 (Currently not supported)
2 Valuation loss up to key date value

Valuation gain
0 No valuation gain
1 (Currently not supported)
2 Valuation gain up to acquisition value
3 (Currently not supported)
4 Valuation gain up to key date value

SAP AG 1999

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.

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AC815

7-16

Valuation: Example of the One-Step Principle

Valuation principle
Name of valuation principle

101
Strict lowest value principle

Valuation method 1
Valuation loss

Valuation loss up to key date value

Valuation gain

No valuation gain

SAP AG 1999

Example: Strict lowest value principle, full valuation loss, no valuation gain.

SAP AG

AC815

7-17

Summarization/Reorganization: Overview

Problem: Performance

Solution: Document data summarization


(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

SAP AG 1999

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.

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AC815

7-18

Summarization: Carryforward Records

System performance optimization


Documents

Documents
x

Carryforwards

Management data

x
x
x

System performance optimization and subsequent archiving (future releases)


Carryforward
records (III)
Original documents
archived

Carryforward
records (I)
Original documents in the
system

Today
Time

3 years

Archiving

Summarization

3 months

Original
documents

SAP AG 1999

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.

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AC815

7-19

Summarization: Call Types

Company code
Contract number

Call type

Carry out summarization


Invalidate summarized records
Delete summarized records
Display information

SAP AG 1999

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.

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AC815

7-20

Information System: Overview

Reporting
TR information system

Standard
reports

Application-specific

Drilldown
reports

Standard
reports

Drilldown
reports

SAP AG 1999

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.

SAP AG

AC815

7-21

Information System: Loans


Loans Management
Accounting
Evaluations for accounting
Account statement
Due date list for posted docs
Balance list
Posting journal
Customer account
Display line items
Analysis
Information system
Transaction
Portfolio/portfolio trend
Revenue analysis
Accounting
Risk settings
Master data

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AC815

7-22

Drilldown Reporting Principle

Business partner

Report list

Brown

Miller
CHF
Fisher

USD
DEM

Currency

Policy loans
Mortgage loans

Borrower's
note

Product type
SAP AG 1999

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AC815

7-23

Drilldown Reporting Functions

Free navigation at all levels (characteristics)


Exception reporting provides a visual warning when critical
values deviate from expectations
Hierarchy processing to reflect external hierarchies (for
example, flow type hierarchies)
Graphics for improved visualization of payment figures
Analysis functions for classification of data
Data mining for the automatic identification of conspicuous
values in the dataset
Currency translation to determine influences on currencies

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AC815

7-24

Multidimensional Dynamic Drilldown Reporting

Partner

Drilldown reporting structure

Company code
Trader
Product type
Portfolio
Securities account

Investment/purchase

x
x

Partner
Financial transaction
Currency
Acct assignment ref.

Money market
Foreign exchange
Derivatives
Securities
Loans

Currency
Product type

Partner

Partner

Partner

Borrowing/sale

Currency
Product type

Currency
Product type

Currency
Product type

SAP AG 1999

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.

SAP AG

AC815

7-25

Drilldown Reporting Architecture


Key figures

Charact.
Forms
Forms

Report
directory

Save

Save

SAP AG 1999

Winword

Drilldown report
Create
Change
Execute

Batch
list

Lists
Graphics
Navigation/
drilldown

Mail

Excel

...

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.

SAP AG

AC815

7-26

Closing Operations: Unit Summary

You are now able to:


Enter accruals and deferrals for a loan portfolio
and valuate the portfolio for accounting purposes
Use summarization to improve performance
Use the information system

SAP AG 1999

SAP AG

AC815

7-27

Special Cases

Contents
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

SAP AG 1999

SAP AG

AC815

8-1

Special Cases: Unit Objectives

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


Enter unscheduled or additional operations
Examples:
- Unscheduled repayments
- Additional charges

SAP AG 1999

SAP AG

AC815

8-2

Course Overview Diagram

Loans management
within SAP Treasury
Course overview

Process flow for


loans given
Loan contract
Disbursement
Payments due

Contract currency
changeover

Closing operations
Special Cases

Complete process
including master data
Rollover
SAP AG 1999

SAP AG

AC815

8-3

Special Cases: Business Scenario

You want to issue a customer with an invoice for


additional charges.
Another customer makes an unscheduled
repayment.

SAP AG 1999

SAP AG

AC815

8-4

Mortgage Loans - Processing Seq./Contract

Transaction management

Portfolio/Accounting

Interested
party

Disbursement

SAP AG 1999

SAP AG

Appl.
Appl.

Offer

Contract

- Create loan
- Business partner
- Conditions
- Correspondence
- Disburse/post loan
- Integration with CM
- Integration with FI
- Post amounts due
- Incoming payment (post)processing

AC815

Other
activities

Rollover

- Accrual/deferral
- Valuation
- Summarization
- Information system
- Special cases

8-5

Loans - Cash Flow


Basic
Basicdata
data

Conditions
Conditions

Collateral
Collateral

Objects
Objects

Correspond.
Correspond.

Calculate
Calculatecash
cashflow
flow
Due on
05/01/YY
06/30/YY
06/30/YY
09/30/YY
09/30/YY
12/31/YY
12/31/YY
03/31/YY+1
03/31/YY+1
06/30/YY+1
06/30/YY+1
09/30/YY+1
09/30/YY+1
12/31/YY+1
12/31/YY+1
03/31/YY+2
03/31/YY+2

FTyp
0001
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120

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

P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P

Settlement amount
100,000.00
1,166.67
1,333.33
1,726.67
2,000.00
1,691.67
2,000.00
1,656.67
2,000.00
1,621.67
2,000.00
1,551.67
2,000.00
1,516.67
2,000.00
1,481.67
2,000.00

Curr.
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI

SAP AG 1999

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

AC815

8-6

Cash Flow: Manual Changes


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

SAP AG 1999

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

AC815

8-7

Cash Flow: Executing Changes


Change contract --> Cash flow
--> Select flow record --> Extras --> Change flow

Manual changes to flows in the cash flow


Due date

12/31/YY

Payment date

12/31/YY

Amount

5,000.00

FlowType Text

0120

A_Inst. rep.

Icon for fixing


Icon for changing
SAP AG 1999

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

AC815

8-8

Loans - Cash Flow: Display Variants


Calculate
Calculatecash
cashflow
flow
Due on

FTyp
0001
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120

05/01/YY
06/30/YY
06/30/YY
09/30/YY
09/30/YY
12/31/YY
12/31/YY
03/31/YY+1
03/31/YY+1
06/30/YY+1
06/30/YY+1
09/30/YY+1
09/30/YY+1
12/31/YY+1
12/31/YY+1
03/31/YY+2
03/31/YY+2

Due date view

Basic view

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

Posting view

Calculation view

P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P

Settlement amount
100,000.00
1,166.67
1,333.33
1.726.67
2,000.00
1,691.67
5,000.00
1,656.67
2,000.00
1,621.67
2,000.00
1,551.67
2,000.00
1,516.67
2,000.00
1,481.67
2,000.00

Curr.
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI

......
View for manual changes

SAP AG 1999

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.

SAP AG

AC815

8-9

Business Operations for Contracts

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

SAP AG 1999

The function "Business operation" triggers the "Manual posting" function.

SAP AG

AC815

8-10

Business Operation: Process

Operation status:
Calculated as a
simulated
record in the
cash flow
Saved as a planned
record on the
database

Delete

Entered/
saved

Change

Activate (release where necessary,


if the release procedure is activated)

Activated

Delete

Deleted

Post

Saved as an actual
record on the
database

Posted
Reverse

Reversed
SAP AG 1999

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.

SAP AG

AC815

8-11

Types of Business Operations


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

( Disbursement )

SAP AG 1999

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.

SAP AG

AC815

8-12

Business Operation Charges: Example


CoCd Loan 0001
10000006

BO status

Name

First entered

Entered on

Entered
Activated

Special charges
Posting charges

Harry Smith
Harry Smith

DD.MM.YYYY
DD.MM.YYYY

Activate

Post

Create

Detail

Flows for business operation


FTyp Amount Curr. Payt date
3145
3146
3147

100
50
10

UNI
UNI
UNI

Name

PT

DD.MM.YY Special charges x


DD.MM.YY Extra charges
x
DD.MM.YY Process. charges x

PC
21
21
21

SAP AG 1999

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.

SAP AG

AC815

8-13

Business Operation: Customizing

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)

SAP AG 1999

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.

SAP AG

AC815

8-14

Posting Individual Records


Condition-based planned
records
(with posting control
"manual debit position")

Business operation
Entering charges
individually

Post individual records


Initial screen: Company code, loan number, due date from ... , to ...

Post
Due on

Flow type

Amount

Currency

10.MM.YY

3145

120

UNI

10.MM.YY

3146

300

UNI

30.MM.YY

0110

2,530.50

UNI

SAP AG 1999

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.

SAP AG

AC815

8-15

Transfer Postings: Overview

Balance sheet
transfer

Balance sheet: Acct 1


Balance sheet: Acct 2

Capital position 1

Capital transfer:
Grouping

Capital position 2

Capital position x

Capital position n

Capital position a

Capital transfer:
Contract split

Capital position 1

Capital position b
Capital position y

SAP AG 1999

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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AC815

8-16

Balance Sheet Transfer


Contract
data:
xxx

Automatic
determination
Acct assgt ref. X: Balance sheet account 46000
Change contract
Contract
data:
yyy

Automatic
determination
Acct assgt reference Y:
Balance sheet account 46020
Preselection for
balance sheet transfer

Execute balance sheet transfer


46000
10,000

PO 10,000

46020
PO 10,000

SAP AG 1999

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).

SAP AG

AC815

8-17

Capital Transfer: Grouping and Splitting Contracts


Target loan (or source loan) information
Company code
Target (or source) loan
...
Control parameters

Capital amounts

Transfer date
Flow type
Source loan inclusive
Target loan inclusive
Distribute cash receipts
Disc./prem. def. not to revenue
Source loan
(or target loan)

Transfer amount

SAP AG 1999

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).

SAP AG

AC815

8-18

Reversal

Reversing individual
operations

Reversing accruals/
deferrals

Disbursement

Deferred interest

Debit position

Reset

Incoming payments

Accrued/deferred discount

Processing returned
debit memos

Capital transfer posting

Other posting

SAP AG 1999

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)

SAP AG

AC815

8-19

Reversing Individual Operations


Reversal categories or groups:
Disbursement/debit position/incoming payment/capital transfer/other posting
Selection
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
Post reversal

Specify Treasury reversal reason

Reversal posting: Update run or simulation

SAP AG 1999

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.

SAP AG

AC815

8-20

Reversal: General Customizing I


I. Define Treasury reversal reasons

RRe

Long name

PmntBlType

01

Processing error

02

Other reasons

1
2
3

F4

Payment block for disbursement clearing


Payment block for IP postprocessing
No payment block

SAP AG 1999

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.

SAP AG

AC815

8-21

Reversal: General Customizing I

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)

SAP AG 1999

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).

SAP AG

AC815

8-22

Reversal: Customizing for Individual Operations

Assign activity category for reversal transaction grouping

PTyp Text
30A A_Mortgage given
30A

A_Mortgage given

Activity cat.
0003

Rev. group
5

0009

F4

F4

1 Disbursement
2 Debit position
3 Incoming payments
4 Capital transfer
5 Other posting

...
0003 Write-down: Credit
0004 Write-down: Debit
0009 Disbursement: Credit

SAP AG 1999

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).

SAP AG

AC815

8-23

Special Cases: Unit Objectives

You are now able to:


Enter unscheduled or additional operations
Examples:
- Unscheduled repayments
- Additional charges

SAP AG 1999

SAP AG

AC815

8-24

Special CasesExercises
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.

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.

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.

What effect would an unscheduled repayment with "No effect" have had in comparison
to a reduction in the term?

SAP AG

AC815

8-25

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.

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
5

Once the reversal posting has been made, check the account statement.

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?

SAP AG

AC815

8-26

Special cases

Solutions

Unit: Special Cases


Topic: Business operations for contracts - unscheduled
repayments

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.

SAP AG

AC815

8-27

2-1

Check the cash flow and the account statement:

Accounting
Treasury
Loans
Transaction Management
Mortgage Loan
Display contract
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.

SAP AG

AC815

8-28

Unit: Special Cases


Topic: Reversing business operations - unscheduled
repayments

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
Transaction Management
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

AC815

8-29

Rollover

Contents
Changing contracts
Rollover
Process management
Customizing:
- Rollover
- Process management

SAP AG 1999

SAP AG

AC815

9-1

Rollover: Unit Objectives

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


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

SAP AG 1999

SAP AG

AC815

9-2

Course Overview Diagram

Loans management
within SAP Treasury
Course overview

Process flow for


loans given
Loan contract
Disbursement
Payments due

Contract currency
changeover

Closing operations
Special cases

Complete process
including master data
Rollover
SAP AG 1999

SAP AG

AC815

9-3

Rollover: Business Scenario

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.

SAP AG 1999

SAP AG

AC815

9-4

Mortgage Loans - Processing Seq./Contract

Transaction management
Interested
party

SAP AG 1999

SAP AG

Appl.
Appl.

Offer

Contract

Portfolio/Accounting
Disbursement

- Create loan
- Business partner
- Conditions
- Correspondence
- Disburse/post loan
- Integration with CM
- Integration with FI
- Post amounts due
- Incoming payment (post)processing

AC815

Other
activities

Rollover

- Accrual/deferral
- Valuation
- Summarization
- Information system
- Special cases
- Rollover

9-5

Loans: Rollover
DD.MM.YYYY
Contract
conclusion

DD.MM.YY+3

DD.MM.YY+15
End of loan
period

End of the
first fixed
condition period

Time

Change contract
or

Rollover
Contract

Offer/contract

Conditions:

Conditions:

Fixed from
DD.MM.YYYY
Fixed to
DD.MM.YY+3

Fixed from
DD.MM.YY+3
Fixed to
DD.MM.YY+7

SAP AG 1999

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

AC815

9-6

Loans: Changing Contracts

Loan disbursement posted

User authorization

Change contract
SAP AG 1999

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

AC815

9-7

Rollover: General

Rollover:
Adjustment of
loan conditions

At the end of the


current
fixed period

At any time

SAP AG 1999

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

AC815

9-8

Rollover: Central Terms

General file, main file, file


Register
Functions

Table
Variants
Modifications

SAP AG 1999

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.

SAP AG

AC815

9-9

Rollover - Overview
Which contracts are rolled over?
General file

Contracts
in specific

Main files

or in
or in

Files

How is the rollover carried out?


Variant 1:

Table

Variant 2:

(Modification(s))
(Modification(s))

Variant n

Result of rollover?
Offer(s)

Contract

SAP AG 1999

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.

SAP AG

AC815

9-10

Rollover: File Structure

General file

Main file

File

File

Loan: 1

Main file

File

File

8 9 10 11 12

File

13

14 15 16

SAP AG 1999

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.

SAP AG

AC815

9-11

Rollover: Creating Main Files

Company code

0001

Main file

Rollover05
YY05

Table YYYYMM
Version number

Reference
Company code
Main file
Version YYYYMM
Version number

SAP AG 1999

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.

SAP AG

AC815

9-12

Rollover: Creating Files

Insert file

Edit selection

Company code
Main file

Loan distribution
Clerk pref.

0001
Rollover05

Version YYYYMM

YY05

Remainder distrib.
Equal

Sequentl

No. 001

PSC
Assigned

File list
File
SC
EU1

Clerk
Miller

Name

AGrp

Miller/Little

SAP AG 1999

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).

SAP AG

AC815

9-13

Rollover: Filling Files

Print parameters - Log


Log level

Print/spool param. log

Execution parameters
x

Test run

Refer. date

Online execution
Execute in batch imm.

05/12/YY

Schedule batch

Rollover main file


Company code
Main file
Version YYYYMM
Version number

0001
Rollover05
YY05
001

SAP AG 1999

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.

SAP AG

AC815

9-14

Rollover: Creating Tables I

Create Table
Company code
Table
Table YYYYMM

0001
Rollover05
YY05

Reference
Company code
Table
Version YYYYMM
Version number

SAP AG 1999

You set up tables for creating rollover offers. These contain conditions for the new fixed period.

SAP AG

AC815

9-15

Rollover: Creating Tables II

Create Table

Company code

0001

Table

Roll_05 YY05 001

Name

Rollover May

Status

Auth. group

05/01/YY

Effective from
Reserv. period

Variants

weeks

Effective to

06/30/YY

End cond. res.

06/12/YY

Modifications

SAP AG 1999

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.

SAP AG

AC815

9-16

Rollover: Variants
Create variants

Table

Roll_05

Name

Rollover May

Status Released

YY05001

Effective from 05/01/YY


6
Reserv. period

Effective to 05/01/YY
End cond. res. 06/12/YY

Condition variants
Rnk

Fxd int.

001

DRate
100.00

Nom. int.
8.5000

+ Toler.
2

- Toler.
2

Selection criteria
-> Loans that fulfill these
criteria are rolled over
using variant 001

Edit SC

SAP AG 1999

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.

SAP AG

AC815

9-17

Variants: Tolerance Limits - Examples


Condition variants

Rnk

Fxd int.
+ Toler.

001

DRate
- Toler.

Nom. int.

100.0000

8.5000

All loans with remaining term

Offer conditions fixed for

a) >= 2 years and 10 months


and
<= 3 years and 2 months

The total remaining term


(2 years and 10 or 11 months; 3 years;
3 years and 1 or 2 months)

b) > 3 years and 2 months

3 years

SAP AG 1999

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

Variant 1
Variant 2
Variant 3

6 months
1 month
-

2 years
5 years
10 years

- Tolerance
2 years
2.5 years
4 years

How many offers does the borrower receive as alternatives for the new condition period?
Answer: 3

SAP AG

AC815

9-18

Rollover: Modification(s)

Create Modification(s)
Table

Roll_05

Name

Rollover May

Status Released

YY05001

Effective to 05/01/YY

Effective from 05/01/YY


Reservation period

End cond. res. 06/12/YY

Condition modifications
Rnk SC
x

Short name

Ref. Modified val.

Nom. percent.

0.5

MOpt
MN

Sign Var.no.
X

002

Edit SC

SAP AG 1999

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.

SAP AG

AC815

9-19

Rollover: Processing Options

Edit

File

Display
Edit

Main file

Display
Edit

General file

Display

Individual rollover

Edit

SAP AG 1999

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.

SAP AG

AC815

9-20

Rollover: Register Overview I

Company code

0001

Main file

Rollover05

Version YYYYMM YY05

No.

001

File information
No. of loans

Totals

369,827.72

322,527.75

Register overview
Rnk

Short name

No. of loans Contract capital

Planned capital

UB

Not processed

269,827.72

222,527.75

SAP AG 1999

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.

SAP AG

AC815

9-21

Rollover: Selecting the Editing Functions


File/Register information
Main file

Rollover05

Register

UB

No. of loans

Loans overview
N

Contract no.

R
x

100001237

101085536

Select edit function


Function overview
Online individual rollover
Display contract
Rollover - Create offers
Rollover - Print offers
Rollover - Remove offers
.
.
.

1
1
N
N
N

SAP AG 1999

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).

SAP AG

AC815

9-22

Rollover: Creating Contract Offers

Print parameters - log


Log level

Print/spool param. log

Execution parameters
Online execution

Rollover table

Execute in batch imm.

Company code
Main file
Table YYYYMM
Table number

Schedule batch
Test run
Refer. date

0001
Roll_05
YY05
001

05/31/YY

Rollover date
End of fixed interest period

On key date

SAP AG 1999

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.

SAP AG

AC815

9-23

Rollover: Register Overview II

Company code

0001

Main file

Rollover05

File information
No. of loans

Totals

369,827.72

322,527.75

Register overview
Rnk

Short name

UB
:
AE

No. of loans Contract capital

Unprocessed

Roll. offer created

69,827.72
:
100,000.00

Planned capital
222,527.75
:
100,000.00

SAP AG 1999

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.

SAP AG

AC815

9-24

Rollover: Process Overview

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

SAP AG 1999

SAP AG

AC815

9-25

Rollover: Evaluations

Evaluation

Rollover statistics
File contents

SAP AG 1999

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.

SAP AG

AC815

9-26

Customizing: Rollover

Loans

Activity type
Logical fields
Register

_ Functions

Report functions
Transaction functions

_ Rollover

Functions/register
Variant-relevant condition types

SAP AG 1999

You make the settings required for the rollover functions in the IMG under Functions -> Rollover.

SAP AG

AC815

9-27

Customizing: Define Activity Type

AT

Loans

Name
Rollover

_ Functions

_ Rollover
_ Activity type

SAP AG 1999

Use activity type "P" for rollover.

SAP AG

AC815

9-28

Customizing: Define Logical Fields

Define logical fields


FldNo.

Name

101010

Product category

101020

Product type

:
"Double-click"

Detail
Field number

101020

Properties
Selection field

Modification

Program
Set/get-progr.

SAPFF67P

SAP AG 1999

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)

SAP AG

AC815

9-29

Customizing: Define Register


Register definition
RG

Name

AD

Rollover offers printed

AE

Rollover offers created

:
"Double-click"

Register

AE

Name

Rollover offers created

Properties
RegisterTyp
Target reg. ID
Dunning reg.
Dunning tol.

Changes permitted
Removal ID
Term end reg.
Term end tol.

SAP AG 1999

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).

SAP AG

AC815

9-30

Customizing: Editing Functions I

Define report functions


FCd

Name

PADR

Print rollover offers

PAES

Create rollover offers

:
Detail screen

Function code

PAES

Function call

RFVDPF01

TrgtRegister

AE

Exec. param. ID
Refer. date ID

SAP AG 1999

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).

SAP AG

AC815

9-31

Customizing: Editing Functions II

Define transaction functions


FCd
MPAE

Name
Dialog individual rollover

"Double-click"

Function code

MPAE

Function call

FNP0

Init. program

SAPFF67F

Init. form

INIT.FNP0

SAP AG 1999

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').

SAP AG

AC815

9-32

Customizing: Assign Functions to Register

Assign Functions to Register


Activity type P

MnF

GnF

Df

SR

FCd

AD

DAEF

26

AD

MPAE

AD

PADR

AD

PAED

Fil.

DR

SAP AG 1999

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.

SAP AG

AC815

9-33

Customizing: Variant-Relevant Condition Types

Activity type P

Rollover

FCat

Flow category

CTyp

TTAN
TZ
TV

Annuity repayment
Nominal interest
Repayment offset

261
201
204

SAP AG 1999

Assign the condition types to be filled by data from the table to activity type "P".

SAP AG

AC815

9-34

Customizing: Rollover - Word Processing

Rollover correspondence
Define documents
Define correspondence activities
Assign function/program to correspondence
activities
Assign documents to correspondence activities
and roles

SAP AG 1999

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.

SAP AG

AC815

9-35

Process Management: Overview

Process management
General
General file
file

Main
Main file
file

File
File

Main
Main file
file

File
File

File
File

File
File

Configure/fill
Configure/fill files
files

SAP AG 1999

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).

SAP AG

AC815

9-36

Process Management: Customizing

Settings for process management:

Process management
Correspondence
- Text processing
- External flow types

SAP AG 1999

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.

SAP AG

AC815

9-37

Rollover/Process Management: Number Ranges


Customizing for number ranges:

For rollover:

For process management:

Condition number

Condition number

Rollover number

SAP AG 1999

SAP AG

AC815

9-38

Rollover: Unit Summary

You are now able to:


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

SAP AG 1999

SAP AG

AC815

9-39

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.

Carry out an unscheduled loan adjustment.


First of all, create a main file in your company code:
Main file: XXTRXX
Version YYYYMM
1-1

1-2

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).

Edit the following:


Main selection criteria:
- Product type: 30A
Selection criteria:
- Loan type: 005 (1A loan)
Save your entries.

SAP AG

AC815

9-40

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.

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.

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.

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?

SAP AG

AC815

9-41

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.

Create a rollover table for the contracts that expire at the year end.
Also create two variants for a fixed period for the table.

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%

SAP AG

AC815

9-42

Rollover

Solutions

Unit: Rollover
Topic: Rollover

Prepare the rollover:


Create a main file:

Accounting
Treasury
Loans
Portfolio
Rollover
Periodic Processing
File Structure
Create
Field name or data category

Value

Company code

TRXX

Name of main file

XXTRXX
YYYYMM

Version

Confirm your entries with ENTER.


1-1

SAP AG

Create a new file via Insert file.


Field name or data category

Value

File name

TRXX

Clerk

9000000002

AC815

9-43

1-2

Set the selection criteria.


Via Edit main selection criteria, you can carry out a preselection from all files
at main file level:
Field name or data category

Value

Product type

30A

Confirm your entries.


Select your file and then choose Edit selection.
Field name or data category

Value

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
Field name or data category

Value

Company code

TRxx

Contract
Confirm your entries with ENTER.

2-2

Create rollover offers:


Select Create rollover offer and enter a file.
Enter the following:

SAP AG

Fixed period

Offer conditions

Interest and repayment conditions

AC815

9-44

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.

Print the rollover offers:


Accounting

Treasury
Loans
Portfolio
Rollover
File Processing
File
Edit
Field name or data category

Value

Company code

TRxx

Main file

XXTRXX

Version

YYYYMM

Version number

001

File

TRXX

Confirm your entries with ENTER.

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.

SAP AG

AC815

9-45

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.

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).

SAP AG

AC815

9-46

To remove the loan from the Contract offers created register, select Register contents,
choose the loan, then remove the loan via

Edit
Remove loan

Check the condition history:

Accounting
Treasury
Loans
Portfolio
Contract
Display
Field name or data category

Value

Company code

TRxx

Contract number
Screen: Conditions
Select Condition history.
Via Switch detail mode, you can also display the rollover offers.

SAP AG

AC815

9-47

Unit: Rollover
Topic: Creating tables

Creating tables

Accounting
Treasury
Loans
Portfolio
Rollover
Table
Create
Field name or data category

Value

Company code

TRxx

Table

TRXX

Table

YYYYMM

Confirm your entries with ENTER.


Field name or data category

Value

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.


Field name or data category

Value

Product type

30A

End of fixed period

Year end

Confirm your settings.


Repeat the transaction for variant 2 and then Save the table.

SAP AG

AC815

9-48

Complete Process Including Master Data

Contents
Master data:
- Business partner
- Credit standing check
- Objects
- Collateral value calculation
- Securities
- Filed documents
- New business table
Application/offer/decision-making/contract
Release
Customizing

SAP AG 1999

SAP AG

AC815

10-1

Complete Process Including Master Data: Unit


Objectives

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


Use the options for managing contract acquisition
data in the system (application, offer, decisionmaking)
Use the options for managing additional loan data

SAP AG 1999

SAP AG

AC815

10-2

Course Overview Diagram

Loans management
within SAP Treasury
Course overview

Process flow for


loans given
Loan contract
Disbursement
Payments due

Contract currency
changeover

Closing operations
Special cases

Complete process
including master data
Rollover
SAP AG 1999

SAP AG

AC815

10-3

Complete Process Including Master Data: Business


Scenario

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.

SAP AG 1999

SAP AG

AC815

10-4

Overview of the Process for New Business Mortgage Loans

Evaluations in the information system

Master data
Business partner
Credit standing check
New business tables
Filed documents
Collateral
Object master data
Collateral values

Transaction mgmt
Interested parties
Application
Decision-making
Offer
Contract

Portfolio
Rollover
Process management
Transfer postings
...

Integration with R/3 FI / TR Cash


Management
SAP AG 1999

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.

SAP AG

AC815

10-5

Possible Procedures in Loans Management

Evaluations in the information system

Mortgages

Contract
offer

Application
Mortgages
General loans

Decision-making

Interest.party

Mortgages
General loans
Policy loans

Borrower's note loans: Reservation / Order

Contract
Mortgages
General loans
Policy loans

Contract

Integration with R/3 FI / TR Cash Management


SAP AG 1999

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.

SAP AG

AC815

10-6

Mortgage Loans - Processing Seq./Contract

Transaction management
Interested
party

Appl.

Offer

Contract

Portfolio/accounting
Disbursement

- Create loan
- Business partner
- Conditions
- Correspondence
- Disburse/post loan
- Integration with CM
- Integration with FI
- Post amounts due
- Incoming payment (post)processing

Other
activities

Rollover

- Accrual/deferral
- Valuation
- Summarization
- Information system
- Special cases
- Rollover
- Master data

SAP AG 1999

SAP AG

AC815

10-7

Master Data - Overview

Partner

Credit standing
calculation
Objects

New business
table

Loans
Collateral
value

Filed
documents

Collateral

SAP AG 1999

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).

SAP AG

AC815

10-8

Master Data: Context

Cred. stand.
calculation

Borrower

Partner

When loan
is created

Cust. in FI

File
Object

Loans

with basic data

Collateral value

Land register:
Collateral:
Life insurance
Stocks
Savings account
:

Part 1: Real estate register


Part 2: Incidental rights
Part 3: 3 sections
Sec. I) Display owners
Sec. II) Charges
Sec. III) Encumbrances

= Prerequisite for the creation


of
Encumbrances

Data is also automatically transferred


to the land register, Part 3/sect.III

SAP AG 1999

SAP AG

AC815

10-9

Master Data - Partner

Partner

Credit standing
calculation
Objects

New business
table

Loans
Collateral
value

Filed
documents

Collateral

SAP AG 1999

SAP AG

AC815

10-10

Loans - Initial Screen

Create Contract: Initial Screen

Company code
Loan number

0001
/intern/

Product type

33A
ENTER

Business partner selection


Role category main borrower

SAP AG 1999

Specify your business partner as the borrower. If the business partner does not already exist in the
system, you have to create it.

SAP AG

AC815

10-11

Business Partner

Basic functions TR-TM


Create/Change/Display

Partner

Loans Management
Create/Change/Display
in roles
Create/Change/Display
in roles compared to loans

SAP AG 1999

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.

SAP AG

AC815

10-12

Master Data - Credit Standing Calculation

Partner

Credit standing
calculation
Objects

New business
table

Loans
Collateral
value

Filed
documents

Collateral

SAP AG 1999

SAP AG

AC815

10-13

Credit Standing Calculation - Business Partner

Master data: Credit stand. calculation

- Create/Change/Display

Business partner reference


(with role category "Credit standing
calculation")

SAP AG 1999

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.

SAP AG

AC815

10-14

Creating Credit Standing Calculations


Calculation for
Brown/ 1 Main Street / Washington DC 20433
Cred. stndg inst. 0001
Schufa
Industry
Employm. status 04
Self-employed
Basic data

Form type
Cons. no.
Currency

0001 H
H Credit standing calculation
No. of persons
4 Calcul. up to
001
No.
earners
1 Freeze date
UNI

04/27/YY

Incomings and outgoings

Monthly income
Net salary of applicant

10,000.00

Amount
10,000.00

SAP AG 1999

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.

SAP AG

AC815

10-15

Customizing: Credit Standing Calculation


Functions -> Credit Standing and Collateral Value Determination
-> Define Calculation Forms

Overview of forms
Form
0001

V
1

CT
91

Form items description


Credit standing calculation

Overview of item types

Overview of item types


ItT
1
2
6

T
1
1

CT
1
1

ItT
29
29

Form items description


Monthly income
Net salary of applicant
Child benefit

SAP AG 1999

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.

SAP AG

AC815

10-16

Master Data - Objects

Partner

Credit standing
calculation
Objects

New business
table

Loans
Collateral
value

Filed
documents

Collateral

SAP AG 1999

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.

SAP AG

AC815

10-17

Master Data - Procedure

Master data

Create/Change loans

- Create

Objects

- Change

Collateral

File

Master data
- Create
- Change
- Assign
Master data
- Create
- Change
- Assign
Master data
- Create
- Change
- Assign

SAP AG 1999

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.

SAP AG

AC815

10-18

Creating Objects
Loans

Master data

Create object
Address available?

No

Yes

Create
address

Create object data


SAP AG 1999

SAP AG

AC815

10-19

Object - Loan

Main object
Additional
object
Land register
Land register

Loan

SAP AG 1999

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.

SAP AG

AC815

10-20

Object - Data
Basic
Basicdata
data

Additional
Additionaldata
data

Parts
Partsof
of
building
building

Land
Landregister
register
data
data

Basic data

Real estate register

Land register (name)

Section I

Valuation bases

Section II

...

Section III

SAP AG 1999

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.

SAP AG

AC815

10-21

Object - Real Estate Register

Land registry
LndRegist. from
No.
333

De
For

Land Registry Washington


Washington

Prcl
Parcels
RPRNo
PropOld LocSubDist Area
40

172,175
Washington

.
.

Business type
Location

7466

1-family house

325.00

Outskirts

SAP AG 1999

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).

SAP AG

AC815

10-22

Object - Section III

Land registry
LndRegist. from
No.

De

Land Registry Washington


Washington

List of properties
Amount

Rank
Currency
1
UNI

250,000.00
IDES
2

Type of chge
2

Land charge

2
100,000.00
UNI
Mortgage Bank, Washington

Mortgage

SAP AG 1999

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.

SAP AG

AC815

10-23

Encumbrances

Object
Assigned to
Loan
~~~~~~~~~
~~~~~~~~~
~~~~~~~~~

Encumbrances

Object data
Land register data

Automatically entered in

Sec. III)
Encumb. 8819

SAP AG 1999

SAP AG

AC815

10-24

Loans: Object - Encumbrance

Company code
Loan number

0001
10000000

30A
60

Mortgage loan
Contract

Object overview
Object number

Object type

1000000001
Encumbrance overview

Create

F4

Collateral type
Name

1000 - Encumbrance
1001 - Assigned encum.

SAP AG 1999

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).

SAP AG

AC815

10-25

Creating Encumbrances

Object number
Land registry

1000000000
Washington

Encumbrance overview/detail

Collateral type
Type of charge
Amount

Encumbrance
Mortgage
250,000.00

UNI

Ledger/letter
Right acc.to
land regis.

SAP AG 1999

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.

SAP AG

AC815

10-26

Customizing: Object

Loans

Master Data

Collateral Object
Basic Data

F4

Object Type
Land Register Type

Additional Data

Parts of Building

Collateral Val. (Long Version)

Object
data

SAP AG 1999

In the IMG under 'Collateral Object', you define default values for some of the object data fields.

SAP AG

AC815

10-27

Master Data - Collateral Value Calculation

Partner

Credit standing
calculation
Objects

New business
table

Loans
Collateral
value

Filed
documents

Collateral

SAP AG 1999

SAP AG

AC815

10-28

Collateral Value Calculation - Procedure

Master data: Collateral val.calc. (CVC)

Create/Change object

- Create/Change

Environment

Object

--> CVC long version


--> CVC short version

Object

--> CVC long version

SAP AG 1999

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.

SAP AG

AC815

10-29

Collateral Value Calculation Long Version Overview

Collateral values - overview


Collateral value - details

Asset value
Build.value
Build.value
Parts of
building

Revenue value
Administrative
costs

Revenue value Parts of building

Land value

SAP AG 1999

SAP AG

AC815

10-30

Collateral Value - Details


Create Collateral Value: Details
Object number
Coll. no.

1000000001
0000000002

20433, 1 Main Street

Collateral values
Asset value
Revenue value
Mean value
ThPrtyExpOpin.
Proposal basis

Land value
Building value
Market value
Selling value
Deduction
Proposal

0.00

Collateral val.

0.00

Fixing
Fixing date
Rating base

SAP AG 1999

SAP AG

AC815

10-31

Collateral Value: Building Value


Create Collateral Value: Building Value of Other Objects
Object number
1000000001
20433, 1 Main Street
1000000001
19 Forest Street / 69190 Washington
Coll. no.

Transfer building parts


Garages
Park.sp.
Base costs

Price
8000

New value

8,000.00
1,000.00

Dep.

Curr. val.

300,000.00

300,000.00

8,000.00
2,000.00
310,000.00 0.00000

8,000.00
2,000.00
310,000.00

400
5
400
Surcharge
8.400
8.400
0.00
1.260
1.260 15,500.00
15,500.00 15
5.00000
9.660
9.660 325,500.00
325,500.00
10
966 48,825.00
48,825.00 15.00000
8.694 374,325.00
374,325.00
15.00000
56,148.75
318,176.25

Building parts
Grounds
Construction costs
Construction incidental costs
Total
Collateral mrkdwn
Building value
Stat. build. val.
SAP AG 1999

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).

SAP AG

AC815

10-32

Collateral Value: Building Parts


Create Collateral Value: Building Value of Other Objects Part of Building
Object number
Coll.no.

1000000001

20433, 1 Main Street

Build. parts
BuilPrt

Cubic area
BuildPrtTyp
1

625.00
1

Price
Depr.
400

EFM

New val.
Curr. val.
250,000.00
250,000.00

250,000.00

Totals for all building parts

250,000.00

SAP AG 1999

SAP AG

AC815

10-33

Collateral Value: Land Value


Create Collateral Value: Land Value of Other Objects Properties
Object number

1000000001
1000000001

20433,
1 Main
Street
19 Forest
Street
/ 69190 Washington

Coll. no.

Properties
Property

Parcel
Price

Parcels
Devel.

Area
Total

500.00

250.00

250.00

Total for all properties:

Land value
125,000.00

0.00

125,000.00

SAP AG 1999

SAP AG

AC815

10-34

Collateral Value: Revenue Value


Create Collateral Value: Revenue Value
Object number
Coll. no.

1000000001

20433, 1 Main Street


Number

Commercial ExternalArea
Garages
Park.space
Resident. ExternalArea

0.00
0
0

Garages
Park.space

1
0

Transfer building parts area


Transfer build.parts gross rev.
Mnth. gross profit
Yearly gross profit
Total yrly gr. profit
Admin. csts (C/R)
Yearly net profit
100

Rnt/unit

500.00
60.00
Commercial
0.00
0.00
0.00
0.00

/
/
/

25,0000
5,0000
100

0.00
0.00
0.00
Revenue value

Gr. rev.
0.00
0.00
0.00
0.00
0.00
0.00
Resident.
110.00
0.00
60.00
720.00
180.00
540.00
9,818.18
9,818.18

SAP AG 1999

SAP AG

AC815

10-35

Collateral Value: Revenue Value Building Parts


Create Collateral Value: Revenue Values Parts of Building
Object number

1000000001

20433, 1 Main Street

Coll. no.

Build. parts
BuilPrt
Gross rev.
1

C/R Usage type


BuildPrtTyp
0

Resident.

SFH

Area
110

Rent
15

1,650.00

SAP AG 1999

SAP AG

AC815

10-36

Collateral Value: Proposal Basis


Create Collateral Value: Details
Object number 1000000001
Coll. no.
Volume unit
Area unit
Expert

M3
M3

20433 1 Main Street

Cubic meter
Square meter

1
Summ.val.det.
Valuation type
Collateral values
368,176.25
286,638.10
327,407.18

Asset value
Revenue value
Mean value
ThPrtyExpOpin.
Proposal basis

Currency
Acc/Part-owner.
Valuation stat.
Land value
Building value
Market value
Selling value
Deduction
Proposal

375,000.00
400,000.00

UNI
0
1

No
Provis.
125,000.00
280,381.50
410,000.00
405,000.00
400,000.00

Fixing
Fixing date
Rating base

Collateral val.
0

0.00

View

SAP AG 1999

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.

SAP AG

AC815

10-37

Customizing: Collateral Value Calculation

Loans

Master Data

Collateral Object

Collateral value
calculation

Collateral Value (Long Version)

F4

Valuation Type
Rating Base

Functions

Object

...
Credit Standing and
Collateral Value Determination
Define Calculation
Forms

SAP AG 1999

SAP AG

AC815

10-38

Customizing: Collateral Value Calculation Forms

Overview of forms
Form
0101

CT
92

Form items description


Determination of collateral value

Overview of item types

Overview of item types


ItT

1
2

1
1

CT
4

ItT
9
9

Form items description


Land value
Property value

sqm x in DM

SAP AG 1999

Customizing for the collateral value determination short version is similar to the process for the
credit standing calculation.

SAP AG

AC815

10-39

Master Data - Collateral

Partner

Credit standing
calculation
Objects

New business
table

Loans
Collateral
value

Filed
documents

Collateral

SAP AG 1999

Collateral objects can be assigned to loans where the flag Collateral objects active is set in the
product type definition.

SAP AG

AC815

10-40

Master Data - Procedure

Master data

Create/Change loans

- Create

Objects

- Change

Collateral

File

Master data
- Create
- Change
- Assign
Master data
- Create
- Change
- Assign
Master data
- Create
- Change
- Assign

SAP AG 1999

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.

SAP AG

AC815

10-41

Collateral

Building loan
agreement

Other credits

Life insurance

Guarantees

Contracts
Pledged
securities

Other

SAP AG 1999

SAP AG

AC815

10-42

Collateral - Data
Collateral:
Collateral:Data
Data

Life insurance
Guarantees
Securities
.....
Building loan agreement

Collateral data
- Amount
- Currency
- Life insurance contract number
- Security ID
- ...
Assignment data
- Collateral contract date (assignment)
- Amount of assigned portion
- ...

SAP AG 1999

SAP AG

AC815

10-43

Create Collateral

Company code
Loan number
Borrower

30A Mortgage loans


10000000
60 Contract
Brown/ 1 Main Street / Washington DC 20433
0001

Collateral
Short name

Total value
Coll.
2000
2001

Assigned value

Assigned on

Short name
Endowment
Term life ins.
' -> Create '

Number
Total/Value

?
?

SAP AG 1999

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.

SAP AG

AC815

10-44

Customizing: Collateral

Loans

F4

Master Data

Define
collateral types

Collateral

Special characteristics
for guarantees

Collateral Types
Guarantee Types I
Guarantee Types II

Special characteristics
for life insurance

Special Treatment
Pledge Status
Special Arrangements

SAP AG 1999

SAP AG

AC815

10-45

Customizing: Collateral Types

Col.

Short name

Name

1000
1001
2000
2001

Encumbrance
Ass. encumbr.
Endow. policy
Term life ins.

Cat.
Encumbrance
Assigned encumbrance
Endowment policy
Term life insurance

F4 "Encumbrances"

1
11
2
2

F4 "Collateral"

Col.

Short name

Col.

Short name

1000
1001

Encumbrance
Assigned encumbrance

2000
2001

Endowment
Term life ins.

SAP AG 1999

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.

SAP AG

AC815

10-46

Master Data - Filed Documents

Partner

Credit standing
calculation
Objects

New business
table

Loans
Collateral
value

Filed
documents

Collateral

SAP AG 1999

SAP AG

AC815

10-47

Master Data - File Procedure

Master data

Create/Change loans

- Create

Objects

- Change

Collateral

File

Master data
- Create
- Change
- Assign
Master data
- Create
- Change
- Assign
Master data
- Create
- Change
- Assign

SAP AG 1999

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.
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.

SAP AG

AC815

10-48

Master Data - Procedure


Filed documents

File 1

Loan A1

Loan A2

File 2

File 3

Loan A3

Borrower A

File 4

Loan B1

File number
= File name

Loan B2

Loan B3

Borrower B

SAP AG 1999

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.

SAP AG

AC815

10-49

File: Create File: Basic Data

Create documents

File number

Documents (overview)
Brown

File basic data


File name

BROWN - MORTGAGE LOAN

Type of file
Creation date
File storage loc.

01
04/09/YY

Ent. by

Smith

File archive

File borrowing data


Borrower
Lending date
Lend.loc.

SAP AG 1999

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.

SAP AG

AC815

10-50

File: Checklist

Selection of Documents to be Created for Status/Contract


File number

BROWN

Dty. Document name


x
x

1
2
3
4
5
6
7
8
9
10

DSt. Assign contract

Loan application
Cost sheet
Financing plan
Personal voluntary disclosure for co-applicant
Salary statement for the last 3 months
Annual earnings statement from previous year
Income tax assessment from previous year
Balance sheets with P+L for the previous years
Income tax assessment for the last 2 years
Rental agreements
:

2
0
2
2
2
2
2
2
2
2

SAP AG 1999

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.

SAP AG

AC815

10-51

File: Supplement Checklist

File number

Brown

Document on file
Document type
Direction
DocStatus
Storage ID
Storage location
Entry date
..
Assignment
..
Notes

F4

F4

DType
0001
0002
0003
0004
0005
:

Document name
Loan application
Cost sheet
Financing plan
Personal voluntary disclosure
Salary statement for ...
:

Indicator
1
File archive
2
Vault
3
Central register

SAP AG 1999

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.

SAP AG

AC815

10-52

File: Document Overview


Document overview
Missing documents
File number

BROWN

DType Document name

DSt R Date

1
2

2
0

Loan application
Cost sheet

2
3
4
5
6
7
8
9
10

Cost sheet
Financing plan
Personal voluntary disclosure for co-applicant
Salary statement for the last 3 months
Annual earnings statement from previous year
Income tax assessment from previous year
Balance sheets with P+L for the previous years
Income tax assessment for the last 2 years
Rental agreements
:

R
I 04/15/YY

0
2
2
2
2
2
2
2
2

SAP AG 1999

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.

SAP AG

AC815

10-53

Customizing: Filed Documents

Master Data -> Filed Documents

File Type
File Storage Location
Define Document Types
Define Document Groups
Assign Document Types to Product Groups
(and Document Groups)
Company Code-Dependent Settings for Product Type -->
Status per Product Type

SAP AG 1999

SAP AG

AC815

10-54

Customizing: Document Types

DTyp
1
2
3
4
5
6
7
8
9
10

Document name

Direction of doc.

Loan application
Cost sheet
Financing plan
Personal voluntary disclosure for co-applicant
Salary statement for the last 3 months
Annual earnings statement from previous year
Income tax assessment from previous year
Balance sheets with P+L from previous years
Income tax assessment for the last 2 years
Rental agreements
:

R
I
I
E
E
E
E
E
E
E

SAP AG 1999

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

SAP AG

AC815

10-55

Customizing: Document Groups

DGr

Text

Application documents

Offer documents

Contract documents

SAP AG 1999

The document group is used to group document types. You can split the groups according to the
specific requirements of your business.

SAP AG

AC815

10-56

Customizing: Assign Document Types


Product type A

Product type A

Product type B

Document

Document

Document

group 1

group 2

group 1

~~~~~~~
~~~~~~~
~~~~~~~

~~~~~~~
~~~~~~~
~~~~~~~

~~~~~~~
~~~~~~~
~~~~~~~

~~~~~~~
~~~~~~~
~~~~~~~

~~~~~~~
~~~~~~~
~~~~~~~

~~~~~~~
~~~~~~~
~~~~~~~

~~~~~~~
~~~~~~~
~~~~~~~

Document types
SAP AG 1999

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.

SAP AG

AC815

10-57

Customizing: Status - Document Groups


Company code-dependent settings for product type - status per product type

Company code
Product type
CS
1
20
31
34
37
60

0001
30A

Status name
Application
Contract offer
Applicn completed/deleted
Contract offer completed
Contract completed
Contract

Int. level
31
33
32
34
37
35

DGr
1
2
1
2
3
3

FI

AFS

CG

3
3

x
x
x
x
x
x

Entry 1 of 9

Field selection
SAP AG 1999

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.

SAP AG

AC815

10-58

Optical Archiving of Correspondence


Optical archive
Correspondence created and stored
(for example, loan contract)

Loan contract

File number

Loan partner 00

File created

Loan
partner
00

Document overview
Button
Details

43

...
Loan contract

Access to optical archive

SAP AG 1999

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.

SAP AG

AC815

10-59

Customizing: Optical Archiving

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

SAP AG 1999

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.

SAP AG

AC815

10-60

Master Data - New Business Table

Partner

Credit standing
calculation
Objects

New business
table

Loans
Collateral
value

Filed
documents

Collateral

SAP AG 1999

SAP AG

AC815

10-61

New Business Table


Table

HYP_01

Effective from

05/01/YY

Variants
Rnk Fxd int.
001

DRate %

98.00000

YY 05
Effective to
Nom. int.

001
05/31/YY
PF

PE

6.00000

Frq IS
3

Repayment PF
4.00000

PE

Ref. int.

+/-

Frq IS
3

Rep. sett. PF

EIM

ICM

PE

Frq

IS
x

Contract: Conditions
Conditions table
Items
Nominal interest

6.00000

Annuity repymt

3
4.00000
x

SAP AG 1999

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.

SAP AG

AC815

10-62

Customizing: Condition Tables

1. Functions -> Process Management

Activity type 'N' has to be maintained!


2. Transaction Management -> Condition Types ->
Define Condition Types for New Business Table
Activity type N New business

FCat

Flow category

CTyp

TTAN
TZ

Annuity repayment
Nominal interest

261
201

SAP AG 1999

Assign the condition types to be filled by data from the table to activity type "N".

SAP AG

AC815

10-63

Mortgage Loans - Processing Seq./Contract

Transaction management
Interest.
party

Appl.

Offer

Contract

Portfolio/Accounting
Disbursement

Other
activities

Rollover

Decision-making

- Create loan
- Business partner
- Conditions
- Correspondence
- Disburse/post loan
- Integration with CM
- Integration with FI
- Post amounts due
- Incoming payment (post)processing

- Accrual/deferral
- Valuation
- Summarization
- Information system
- Special cases
- Rollover
- Master data
- Complete process

SAP AG 1999

SAP AG

AC815

10-64

Interested Party: Function Overview

Change
Create

Display

Interested
party
(request)

Delete

Reactivate

SAP AG 1999

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.

SAP AG

AC815

10-65

Interested Party
Interested party already in system as a partner?
No

Yes

- Create partner
- Assign role

Interested Party: Create


Basic data
0001
Company code
RequestedCap

150,000.00

Product type
Purpose of loan
Acceptance type

30A
01
03

Application date
Reserved until
Contact person

03/01/YY
04/15/YY
Smith

Rejection
Non-acceptance
Rejection on

UNI

Mortgage loan
House building
In person

Reason

SAP AG 1999

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.

SAP AG

AC815

10-66

Application/Offer/Contract - Function Overview

Application
Create

Change

Display

Waive

Reactivate

Transfer to offer

Contract offer
Create

Change

Display

Waive

Reactivate

Transfer to
contract

Contract
Create

Change

Display

Waive

Reactivate

SAP AG 1999

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.

SAP AG

AC815

10-67

Application: Function Overview

Waive
Reactivate

Create
Change

Full waiver

Display

Applicn

Transfer
to offer

Transfer
to contract

SAP AG 1999

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.

SAP AG

AC815

10-68

Create Loan: Initial Screen

Sample loan

Company code
Loan number

0001
/internal/

Product type

30A

Reference
Sample loan no.
Partner

SAP AG 1999

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.

SAP AG

AC815

10-69

Loans - Initial Screen

Create Contract: Initial Screen

Company code
Loan number

0001
/internal/

Product type

33A
ENTER

Business partner selection


Role category main borrower

SAP AG 1999

SAP AG

AC815

10-70

Contract - Basic Data


Basic
Basicdata
data

Conditions
Conditions

Collateral
Collateral

Objects
Objects

Correspond.
Correspond.

All functions are available for processing applications,


as discussed for contracts.
You usually enter conditions in conjunction with offers that you
present 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.

SAP AG 1999

SAP AG

AC815

10-71

Offer: Functions Overview

Change
Create

Display

Contract
offer

Contr. acceptance

Offer waiver

Partial
waiver
Full waiver

Reactivate
SAP AG 1999

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.

SAP AG

AC815

10-72

Offer Proposals

Contract

Application

Transfer to
offer

Create offer(s) where


necessary
(offer proposals/variants)

No. 10000001

No. 10000001

No. 10000001

SAP AG 1999

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.

SAP AG

AC815

10-73

Offer - Basic Data


Basic
Basicdata
data

Conditions
Conditions

Collateral
Collateral

Objects
Objects

Correspond.
Correspond.

All functions are available for processing offers, as discussed for contracts.
You usually enter conditions in conjunction with offers that you present
to customers.

SAP AG 1999

SAP AG

AC815

10-74

Configuring Conditions

Loans basic data


Condition header
------------------------------------------------------

Condition items
Planned

records

Cash flow

SAP AG 1999

SAP AG

AC815

10-75

Waive Contract Offer

Full waiver
Contract
offer

Contract
offer

Further processing
completely or
partially rejected

Partial waiver
Contract
offer
10,000 UNI

SAP AG 1999

SAP AG

AC815

10-76

Full Waiver

0001

Company code
Loan number
Borrower . .

30A
20

Mortgage loans
Contract offer

General
Non-accept. reason
Rejec./waiver on

02 Competitor's conditions better


11 Incorrect entry in offer

Status
Prev. status
New status

20 Contract offer
34 Contract offer completed

The loan is inactive - can only be displayed

SAP AG 1999

A full waiver deactivates the offer, that is, you cannot carry out any further processing. You can
however display the data.

SAP AG

AC815

10-77

Partial Waiver

Company code
Loan number
Borrower . .

0001

30A
20

Mortgage loans
Contract offer

Contract data
Contract cap.
Value-dated capital
Disbursement obligation
New disbursement oblig.

150,000.00
0.00
150,000.00
140,000.00

UNI
Start of term

Partial waivers
Calc. date

04/15/YY

Amount
10,000.00

In the loan: Condition item "Capital reduction" added automatically

SAP AG 1999

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.

SAP AG

AC815

10-78

Contract Offer/Contract - Functions Overview

Create

Change

Display

Waive

One contract offer


Transfer

Contract
Create

Change

Display

Waive

Reactivate

SAP AG 1999

SAP AG

AC815

10-79

Customizing Structure: Loans


Product
category

Status
category

Flow category

Calculation
category

Condition type

Flow type

SYSTEM LEVEL
Status definition/
status transfers
Product type

Condition group

USER LEVEL
SAP AG 1999

SAP AG

AC815

10-80

Customizing: Status Definitions


Company code-dependent settings for product type - status per product type

Company code
Product type
CS
1
20
31
34
37
60

0001
30A

Status name
Application
Contract offer
Applicn completed/deleted
Contract offer completed
Contract completed
Contract

Int. level
31
33
32
34
37
35

DGr
1
2
1
2
3
3

FI

AFS

CG

3
3

x
x
x
x
x
x

Entry 1 of 9

Field selection
SAP AG 1999

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).

SAP AG

AC815

10-81

Customizing: Status Transfers


Company code-dependent settings for product type - status tfrs per product type

Company code
Product type

0001
30A

Transfer matrix of external statuses


PrevStat. Status name
0
0
0
Application
1
Application
1
Application
1
Contract offer
20
Contract offer
20
Contract offer
20
Copy stat. trans.

New stat.
1
20
60
1
20
31
20
34
60

Status name
Application
Contract offer
Contract
Application
Contract offer
Application waived/deactivated
Contract offer
Offer waived/deactivated
Contract

Position...

Entry 1 of 9

SAP AG 1999

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.

SAP AG

AC815

10-82

Contract- 5 Ways to Enter Contracts in the SAP


System

Application

Transfer to
Offer

Transfer to
Contract
Transfer to
Contract

Offer

Create contract

3
4

Transfer to
Contract

Application

Application

Decisionmaking

Offer

Contract
Contract

SAP AG 1999

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.

SAP AG

AC815

10-83

Application: Decision-Making

Waive
Reactivate

Create
Change

Full waiver

Display

Applictn

Decision-making
Transfer
to offer

Transfer
to contract

SAP AG 1999

SAP AG

AC815

10-84

Decision-Making - Overview

Credit standing calctn

Decision-making:
Offer(s)

Application data

Collateral value
SAP AG 1999

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.

SAP AG

AC815

10-85

Decision-Making

Application
Company code

0001
10000000

Application no.

Brown/ 1 Main Street / Washington DC 20433

Object data

Decision base
Loan purpose

01 House construction

Application capital
Of which 60
%
Of which 40
%
Debt service
New commitment

Prop.prime costs
Credit stand.surp.
Exist. commitment 3,350.00

500,000.00
500,000.00

250,000.00
300,000.00
200,000.00

UNI

63.729

Loan for application


Contract

F PTyp LTyp Commitm.cap.


30A

Stat.

Nom.int.

Disb.

Term end

150,000.00

SAP AG 1999

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.

SAP AG

AC815

10-86

Offer Creation - Options


Create offer(s) where
necessary
(offer proposals/variants)

Contract
Without decisionmaking

Application

Transfer
to offer
1000001

1000001

1000001

With decisionmaking

SAP AG 1999

Contract

Transfer to
several offers
Create several offer(s)
for each offer
where necessary
(offer proposals/variants)

1000002
1000003
1000004

1000003

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.

SAP AG

AC815

10-87

Release in Loans

Release
Data

Further processing

- Loan master data


- Business partner
- Object
- Decision-making
- New business table
- Business operations
- Capital transfer
- Reversal
- Incoming payment postprocessing
- Disbursement

SAP AG 1999

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 BCBasis -> SAP Business Workflow).

SAP AG

AC815

10-88

Release: SAP Business Workplace


SAP Menu
Office
Workplace
Workplace: User ABC
Inbox
Unread documents 5
Workflow
2

Inbox
Classif. Title

Date of entry

Rel: Disbursement - Loan 1000007 ....DD.MM.YYYY


Rel: New business table "Hyp"....
DD.MM.YYYY

SAP AG 1999

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.

SAP AG

AC815

10-89

Overview of Workitems Loan

Release object

Long name

Cat. Created by

BUSOP
...

Disbursement of loan 1000007

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.

SAP AG 1999

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.

SAP AG

AC815

10-90

Result of Complete Release

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 and
thereby make posting possible
- Capital transfer, incoming payment postprocessing, reversal:
Data is posted immediately (actual records)

SAP AG 1999

SAP AG

AC815

10-91

Customizing: Release

Rel. Obj. Name


AUSZ
Loan cont. Disb.

Active

Loans

+
-

Basic Settings
Transaction Management

Release

Rel. Obj. CoCd Cont. stat. PTyp

Main. Active Inds

BPAR
VDARL 0001

01
30A

Curr.ReSt. Act.

11
11

Def. Rel. Stat. Par.


Adj./Copy WF Tem.

SAP AG 1999

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.

SAP AG

AC815

10-92

Release: Object

Rel. object

Name

Short text

BPAR

Business partner

AUSZ

Loan contract disbursement

Active

Partner

Disbursement

SAP AG 1999

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.

SAP AG

AC815

10-93

Release: Names

D
D
D
D
D
D
D
D
D
D
D
D
D
D
D
D

ReSt
0
10
11
20
21
22
30
31
32
33
40
41
42
43
44

Name
No release
Released
Entered, one release level
Released, 2 employees
First release, 2 employees
Entered, 2 employees
Released, 3 employees
Second release, 3 employees
First release, 3 employees
Entered, 3 employees
Released, 4 employees
Third release, 4 employees
Second release, 4 employees
First release, 4 employees
Entered, 4 employees

SAP AG 1999

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.

SAP AG

AC815

10-94

Release: Parameters

Rel. object

Co
Cd

Status

Product
type

AUSZ

TR00

30A

AUSZ

TR00

33A

Limit amnt

100.000

Curr.

FRF

ReSt

Active

11

32

SAP AG 1999

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.

SAP AG

AC815

10-95

Portfolio: Loans to Partner

Company code
Cross-company code
Contract number
Name of main borrower
Selection via contract number
With open items
With other contracts

SAP AG 1999

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.

SAP AG

AC815

10-96

Information System: Portfolio - Evaluations

Complete overview of loans


Evaluation

Total commitment per


partner
Loan commitment

SAP AG 1999

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.

SAP AG

AC815

10-97

Loans: Customizing for Number Ranges


Number ranges for:
Loan number
Collateral object

Interested party (request)

Collateral value determination


Collateral
Rollover number
Business operation
.................
SAP AG 1999

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.

SAP AG

AC815

10-98

References
Additional fields
Other references

Assignment/internal reference/characteristics
Alternative 1/alternative 2

Basic
Basicdata
data

Group keys
User fields

Reference

Business 1

CON
OPT
REF
SWP

Business 1

SWIFT confirmation files


Derivatives option reference
General reference
Foreign exchange swap

SAP AG 1999

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.

SAP AG

AC815

10-99

Complete Process Including Master Data: Unit


Summary

You are now able to:


Use the options for managing contract acquisition
data in the system (application, offer, decisionmaking)
Use the options for managing additional loan data

SAP AG 1999

SAP AG

AC815

10-100

Exercises
Unit: Complete Process Including Master Data
Topic: Credit standing check

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

Enter information for a credit standing check

You want to assess the borrowers personal and financial situation using
the credit standing check in the system.

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?

SAP AG

AC815

10-101

Unit: Complete Process Including Master Data


Topic: Collateral objects

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


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).

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.

SAP AG

AC815

10-102

Unit: Complete Process Including Master Data


Topic: Collateral value calculation

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


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.

Check whether all the relevant entries have been made for your collateral object (see
the collateral object exercise), and make changes where necessary.

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.
Note:
Once you have fixed the collateral value, you cannot make any more
changes to the data!

SAP AG

AC815

10-103

Unit: Complete Process Including Master Data


Topic: Collateral and files

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


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.

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.

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.

SAP AG

AC815

10-104

Unit: Complete Process Including Master Data


Topic: Interested party inquiry

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


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.

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.

SAP AG

AC815

10-105

Unit: Complete Process Including Master Data


Topic: Application

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


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.

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.

SAP AG

AC815

10-106

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.

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

SAP AG

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

AC815

10-107

Solutions
Unit: Complete Process Including Master Data
Topic: Credit standing check

Create a credit standing check:

Accounting
Treasury
Loans
Master Data
Business Partner
Credit Standing Calculation
Create
Dialog box: Choose partner
Field name or data category

Value

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.

SAP AG

AC815

10-108

Unit: Complete Process Including Master Data


Topic: Collateral objects

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).

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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.

2-2

Field name or data category

Value

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

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)

SAP AG

Field name or data category

Value

Usage type

1 (privately-financed
accommodation)

Building part type

1 (SFH)

Unit

Garages

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)


Field name or data category

Value

Usage type

6 (warehouse)

Building part type

3 (warehouse)

Unit

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
Pushbutton: Partner
Create in role
Dialog box: Select role
You can choose one of several roles. Select the owner role, A800.
Dialog box: Choose partner
Field name or data category

Value

Name

Loan partner XX

Dialog box: Selected partners


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
0800 has been assigned to your partner. Do not make any changes.
Save the partner.

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2-4

Real estate register:


Pushbutton: Real estate register
Maintain an entry for your object.
Field name or data category

Value

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.
Field name or data category

Value

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.

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Unit: Complete Process Including Master Data


Topic: Collateral value calculation

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.

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.

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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.

Field name or data category

Value

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
Leave all the other fields on this screen blank. The system makes
entries in these fields automatically.

Pushbutton: Parts of building


Building part 1 (SFH)
Field name or data category

Value

Price

For example, 520

Depreciation

For example, 12%

Building part 2 (warehouse)

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Field name or data category

Value

Price

For example, 150

Depreciation

For example, 20%

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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
Field name or data category

Value

Price

For example, 40,000

Depreciation

For example, 12%

External areas
Field name or data category

Value

Price

For example, 20,000

Collateral markdown

4-2

Field name or data category

Value

Surcharge

For example, 20%

Calculate the land value:


Pushbutton: Land value
Properties
Field name or data category

Value

Price

For example, 120

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.

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4-3

Calculate the revenue value:


Pushbutton: Revenue value
Leave all the other fields on this screen blank. The system makes
entries in these fields automatically.

Pushbutton: Building parts revenue value


Building part 1 (SFH)
Field name or data category

Value

Rent

For example, 14

Building part 2 (warehouse)


Field name or data category

Value

Rent

For example, 10
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

SAP AG

Field name or data category

Value

Rent

For example, 50

Field name or data category

Value

Administrative costs (C/R)

For example, 60/30

Interest rate (C/R)

For example, 10/5

Remaining life (C/R)

For example, 24/44

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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
Field name or data category

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.

4-5

Fix a collateral value:

Collateral value
Fix
Field name or data category

Value

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.

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Unit: Complete Process Including Master Data


Topic: Collateral and files

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
Dialog box: Select role
or
Pushbutton: Partner
Create in role
Dialog box: Select role
You can choose one of several roles. Select the role for the policyholder.
Dialog box: Select partner

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Field name or data category

Value

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
0700 has been assigned to your partner. Do not make any changes.
Save 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
Dialog box: Choose partner
Field name or data category

Value

Name

Loan partner XX (neighboring


group)

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
0115 has been assigned to your partner. Do not make any changes.
Save the partner.

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Field name or data category

Value

Type of arrangement

Private assignment to third


party

Trust amount

Variable according to
repayment

Function key: F3
Dialog box: Change special arrangement
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.
Field name or data category

Value

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.

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Unit: Complete Process Including Master Data


Topic: Interested party inquiry

Create an interested party inquiry:

Accounting
Treasury
Loans
Transaction Management
Mortgage Loan
Interested Party
Create
Dialog box: Choose partner
Field name or data category

Value

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
0110 has been assigned to your partner. Do not make any changes.
Save the partner.

Field name or data category

Value

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

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Unit: Complete Process Including Master Data


Topic: Application

Create an application:

Accounting
Treasury
Loans
Transaction Management
Mortgage Loan
Application
Create
Field name or data category

Value

Company code

TRXX

Product type

30A

Dialog box: Choose partner


Field name or data category

Value

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
0100 has been assigned to your partner. Do not make any changes.
Save the partner.

Dialog box: Select role


You can choose one of several roles. Select the role for the main borrower.

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8-1

Maintain the loan master data:


Basic data
Field name or data category

Value

Loan type

005 (1A loan)

Basic data/Analysis data

8-2

Field name or data category

Value

Maturity

06 (Maturity > 10)

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.

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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

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Field name or data category

Value

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.

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Field name or data category

Value

Assigned value

For example, 2,500 UNI

Type of document

Assignment
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8-6

Insert a file:
Correspondence
Field name or data category

Value

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
Field name or data category

Value

File number

Possible entries search

Dialog box: File search

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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.

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Contract Currency Changeover

Contents:
General information
Preparation activities
Conversion phase
Cleanup activities
Mass conversion
Customizing

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Contract Currency Changeover: Unit Objectives

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


Convert loan contracts to the euro
Make the necessary Customizing settings for the
changeover to the euro

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11-2

Course Overview Diagram

Loans Management
within SAP Treasury
Course overview

Process flow for


loans given
Loan contract
Disbursement
Payments due

Contract currency
changeover

Closing operations
Special cases

Complete process
including master data
Rollover
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11-3

Contract Currency Changeover: Business Scenario

Several loans customers want to change their


loans over to the euro.

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11-4

Contract Currency Changeover: General


Information

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

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11-5

Changeover Options I
Dual currency phase (01/01/1999 - 12/31/2001)

Loan contract

Contract currency:
Currency participating in EMU

1,000,000 UNI

Loan contract
50,000

Contract currency:
EUR

EUR

Contract currency changeover

At the end of the dual-currency phase, all


the loans must have been converted to the euro.
SAP AG 1999

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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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 taken

- Loans given
- Loans taken

You always reset the contract currency changeover in the


individual processing function

SAP AG 1999

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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Possible Changeover Scenarios

Contract currency (CC)

Local currency
EMU currency
Case 1:
CC = LC
EUR

Local currency
(LC)

EMU
Foreign currency
(FC)

EUR

Other currency

Example:
UNI
EUR
where LC = UNI
Case 2:
CC = FC
EUR

Case 3:
CC = FC

Example:
FRF
EUR
where LC = UNI

Example:
UNI
EUR
where LC = EUR

EUR

Case 4:
CC = FC

EUR

Example:
UNI
EUR
where LC = GBP

Other foreign
currency (FC)

Case 1: Standard case before the local currency changeover


Case 3: Standard case after the fall local currency changeover

In the interim period, local currency loans


are managed as foreign currency loans
SAP AG 1999

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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Case 1: CCC of LC Loans before LCC

LC and CC = UNI before 01/01/1999


LC changeover on 03/15/2001
CC changeover on 01/05/1999
Dual-currency phase

1/1/1999

1/1/2000

1/5/1999
LC

UNI

CC

UNI

LC = CC

6/30/2002

1/1/2001

3/15/2001
UNI

EUR
EUR

LC CC

LC = CC

CC = FC

SAP AG 1999

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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Case 2: CCC of FC Loans before LCC

LC CC
LC = UNI / CC = FRF before 01/01/1999
LC changeover on 03/15/2001
CC changeover on 10/12/1999
Dual-currency phase

1/1/1999

1/1/2000

10/12/1999

3/15/2001

UNI

LC
CC

6/30/1998

1/1/2001

EUR

FRF

EUR

LC CC

LC = CC

CC = FC

SAP AG 1999

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

LC and CC = UNI before 01/01/1999


LC changeover on 04/18/1999
CC changeover on 02/15/2001

Dual-currency phase

1/1/1999

1/1/2000

1/1/2001
2/15/2001

4/18/1999

LC

UNI

CC

UNI

LC = CC

6/30/2002

EUR
UNI

EUR

LC CC

LC = CC

CC = FC

SAP AG 1999

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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Case 3 (Additional Case): CCC of FC Loans after


LCC
LC CC
LC = UNI / CC = FRF before 01/01/1999
LC changeover on 04/18/1999
CC changeover on 11/18/2000
Dual-currency phase

1/1/1999

1/1/2000

1/1/2001
11/18/2000

4/18/1999

LC

6/30/2002

UNI

EUR
EUR

FRF

CC

LC

CC

LC = CC

CC = FC

SAP AG 1999

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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CCC: Converting the Data


Converting a loan from a participating currency to the euro:
Automatic conversion of all currency fields based on the contract
currency 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 items
Payment splitting data
Payment advice data
Flow data:
Documents in the subledger / cash flow:
Actual records
Non-condition-based planned records
Condition-based planned records (visible after planned
record update)
Drawings on disbursements
Borrower's note loan orders
SAP AG 1999

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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Local Currency Changeover and Loans I


Start
changeover

Preparation
activities:
Accounting

Preparation
activity

no
Customizing
Settings:
TR-TM-SE
no

Make settings

yes

Run currency
valuation
program

Effects on FI:
TR-TM-SE

yes

Reconcile
FI and TR-TM-SE

Effects on FI:
TR-LO
no
Convert limits
Conversion of
local currency

yes

Execute

Disclose
currency reserves:
TR-TM-SE
no

no
- File management
- Cancel summariztn
TR-LO
no

SAP AG 1999

yes

yes - Process files


- Summarization
report program
yes

yes

Reconcile
FI and TR-LO

Convert
manually

no

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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Local Currency Changeover and Loans II


Local currency
conversion
Currency hedge
Limit management
report program
SEUVTBLV

Effects on FI:
TR-TM-SE

Cleanup
activities

yes

Adjust
selection criteria:
TR-LO
no

yes

Effects on FI:
TR-LO

yes

Process

Process

Process

no
Adjust data in CM
End of
changeover

yes
Execute

no

SAP AG 1999

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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Contract Currency Changeover (CCC):


Process Flow
Preparation activities

Start
changeover

General
preparation
activities

CCC: Accounts

Value foreign
currency loans

Preparation
activities
per loan

Process
suspended data

Empty rollover
file

Make settings
in Customizing

Conversion of contract currency


Incoming
payment level

Convert
master data

Convert
flow data

Loans
rolled over

Conv.borrowers
note loans

Adjustment
flows

Currency swap:
Open items

Currency swap:
Loan position

Currency swap:
Disc./premium

Cleanup activities
Conversion
log

Balance
sheet transfer

Other activities

End of
changeover

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11-16

Contract Currency Changeover:


Preparation Activities

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

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Preparation Activities: Overview

Preparation activities

Start of
changeover

General
preparation
activities

CCC:
Accounts

Value
FC loans

Preparation
activities
per loan

Process
suspended
data

Empty
rollover file

Set up
Customizing

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11-18

General Preparation Activities

General
preparation
activities

I
CCC:
Accounts

II
Value
FC loans

III
Set up
Customizing

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Contract Currency Changeover: Postings

When you convert the contract currency, the system makes the
following postings:
Currency swap postings for:
Loan position
Accruals/deferrals (premium/discount)
Open items
Adjustment postings (for rounding differences):
Adjustments to capital amounts
- Remaining capital
- Disbursement commitment
- Interest calculation capital
Balance adjustments
for incoming payment processing in the subledger
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I) Contract Currency Changeover: Accounts


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.

SAP AG 1999

SAP AG

AC815

11-21

II: Processing Foreign Currency Loans

PREREQUISITES

PROCEDURE

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

Application level:
Loans
Accounting
Valuation
Foreign currency

SAP AG 1999

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.

SAP AG

AC815

11-22

III: Customizing: Currencies

Define currency code for


the euro

Define currencies to be
converted and the euro
Treasury Management

Global settings

Basic Functions

Currencies

Euro Currencies
Define Participating Currencies
for Euro Changeover

SAP AG 1999

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".

SAP AG

AC815

11-23

III: Define Flow Types for Adjustment Postings and


Currency Swap Postings
Example: Extract from the table of flow types
FTyp

Name

Flow
categ.

Calc.
categ.

Activity
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

SAP AG 1999

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.)

SAP AG

AC815

11-24

III: Currency Swap Postings for Loan Positions and


Adjustments to Capital Amounts

Assign flow types to the application functions:

Treasury
Treasury Management
Loans
Transaction Management
Condition Types
Define Condition Groups

SAP AG 1999

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

SAP AG

AC815

11-25

III: Currency Swap Posting: Open Items

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

SAP AG 1999

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

SAP AG

AC815

11-26

III: Account Determination for Flow Types

Treasury
Treasury Management
Loans
Functions
Accounting
General Ledger Update
Define Account Determination

SAP AG 1999

To ensure that the changeover to the euro is posted correctly, you must define account determination
for all the additional flows.

SAP AG

AC815

11-27

III: Correspondence

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.

SAP AG 1999

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.

SAP AG

AC815

11-28

Preparation Activities per Loan

Preparation
activities
per loan

I
Process
suspended
data

II
Empty
rollover
file

SAP AG 1999

SAP AG

AC815

11-29

I: Process Suspended Data

PROCEDURE
Before you convert each loan
(individual processing), release any
suspended data

SAP AG 1999

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.

SAP AG

AC815

11-30

II: Empty Rollover File

PREREQUISITES

PROCEDURE

There are loans in the rollover file

Loans
Portfolio
Rollover

These loans cannot be changed


over to the euro

File Processing
General File
Display / Edit

SAP AG 1999

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.

SAP AG

AC815

11-31

Contract Currency Changeover:


Conversion Phase

This section will give you an overview of the


conversion process:
Conversion procedure
Check the incoming payment level
Convert master data
Convert flow data
Convert borrower's note orders
Loans rolled over
Generate and post adjustment flows
Currency swap posting for loan position
Currency swap posting for open items
Currency swap posting for premium/discount
Balance adjustments
Reset

SAP AG 1999

SAP AG

AC815

11-32

Contract Currency Changeover: Conversion


Procedure

Conversion of contract currency

Incoming
payment
level

Convert
master
data

Convert
flow
data

Loans
rolled over

Convert
borrowers
note orders

Adjustment
flows

Currency
swap:
Open items

Currency
swap:
Position

Currency
swap:
Prem./disc.

SAP AG 1999

! 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.

SAP AG

AC815

11-33

CCC: Start Conversion for Individual Loans

Selection criteria

Procedure

Company code
Loan number

Loans
Portfolio

Control parameters for online conversion

Contract Currency Changeover


to the Euro

Posting date

Currency Changeover

Planned record update

Control parameters for conversion


using process management
Put loan into file

SAP AG 1999

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.

SAP AG

AC815

11-34

Check Incoming Payment Distribution Level

Loans

Finance project

IP distrib. level
(in basic data)

10000001

Project1

Finance project variant

10000002

Project1

Finance project variant

10000003

Project1

Contract variant

10000004

Project3

Finance project variant

10000005

Project1

Customer variant

SAP AG 1999

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.

SAP AG

AC815

11-35

Conversion of Master Data

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.
SAP AG 1999

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.

SAP AG

AC815

11-36

Conversion of Flow Data

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

SAP AG 1999

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.

SAP AG

AC815

11-37

Conversion of Borrower's Note Orders

BNL

Borrower's note loan orders are converted in the


same way as the flow data

SAP AG 1999

SAP AG

AC815

11-38

Loans Rolled Over

If loans have been rolled over, the system adjusts


the commitment capital in euros.

SAP AG 1999

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.

SAP AG

AC815

11-39

CCC: Example

UNI / EUR exchange rate:

1.95583
UNI

Disbursement
Repayment
Remaining capital (calculated from flows)
Remaining capital (translated directly)
Rounding difference

100,000.00
- 50,000.00
50,000.00
50,000.00

EUR
51,129.19
- 25,564.59
25,564.60
25,564.59
0.01

Capital amount field

SAP AG 1999

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

SAP AG

AC815

11-40

Currency Swap Posting: Loan Position


Remaining capital
50,000.00 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/UNI
1.95583
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
50,000.00 UNI

50,000.00 UNI

25,564.60 EUR

0.01 EUR

Clearing account for currency swap


50,000.00 UNI

25,564.59 EUR

25,564.60 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!)

SAP AG 1999

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).

SAP AG

AC815

11-41

Generating and Posting Adjustment Flows

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 and
Clearing account to balance sheet account

SAP AG 1999

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.

SAP AG

AC815

11-42

Currency Swap Posting: Open Items

Post.dte Text
01/31

Interest debit pos.

02/15

Outflow due to euro

02/15

Post open items in


euros

Subledger
100.00 UNI

FI
100.00 UNI

100.00 UNI
(51.34 EUR)
51.34 EUR

100.00 UNI
51.34 EUR

With a reference to
the debit position
item

Debit position generated on 01/31 in


UNI
Contract currency changeover to the
euro on 02/15

SAP AG 1999

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.

SAP AG

AC815

11-43

Currency Swap Posting: Premium/Discount

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)

SAP AG 1999

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.

SAP AG

AC815

11-44

Currency Swap Postings


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 position
The 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 items


An open item is taken off the account in the original currency and
posted back in euros.

Accrual/deferral accounts
The 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.
SAP AG 1999

SAP AG

AC815

11-45

Adjustments Made During Conversion

Adjustments for rounding differences:


Adjustments to capital amounts
Remaining capital (planned capital / effective capital)
Disbursement commitment
Interest calculation capital
Balance adjustments
for incoming payment processing in the subledger
Document-based balance adjustments
Account-based balance adjustments

SAP AG 1999

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.

SAP AG

AC815

11-46

Balance Adjustments I

Reasons:
Without balance adjustments, you cannot reconcile the loans
subledger and the FI general ledger
Unadjusted balances may result in processing errors if you reverse
flows posted before the changeover
The balance disclosed in the account statement is incorrect

Solution:
The system generates balance adjustment flows during the contract
currency conversion
Document-based balance adjustments, provided that they can be
calculated on the basis of references
Account-based balance adjustments
(only for balance display in account statement)

SAP AG 1999

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 accountbased balance adjustment. Account-based balance adjustments are only posted in the subledger.

SAP AG

AC815

11-47

Balance Adjustments II

Example of a document-based balance adjustment:


(Exchange rate 1.90 UNI / EUR)
Before conversion
Flow

Doc.

Pos.

Interest debit pos.


Bal. adjustment
IP interest
IP interest

0001
0001
0002
0003

1
2
1
1

Balance

Debit

Credit

20.00 UNI

After conversion
with adjustment
Debit
Credit
10.53 EUR

10.00 UNI
10.00 UNI
0.00 UNI

0.01 EUR
5.26 EUR
5.26 EUR
0.00 EUR

SAP AG 1999

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.

SAP AG

AC815

11-48

Resetting the Contract Currency Changeover

Reset contract currency changeover to the euro


Selection criteria

Procedure

Resetting the euro contract currency changeover:


Company code

Loans

Loan number

Portfolio
Contract Currency
Changeover to the Euro

Control parameters
Posting date

Reset Currency Changeover

Reason for reversal


Planned record update

SAP AG 1999

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

SAP AG

AC815

11-49

Reset Changeover: Procedure

The reset function is only intended for reversing the contract


currency changeover.
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.

SAP AG 1999

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.

SAP AG

AC815

11-50

Contract Currency Changeover:


Cleanup Activities

This section will give you an overview of how to:


Check the conversion log
Postprocess the balance sheet transfer
Perform other cleanup activities

SAP AG 1999

SAP AG

AC815

11-51

Cleanup Activities

Cleanup activities

Conversion
log

Balance
sheet
transfer

Other
activities

End
of
changeover

SAP AG 1999

SAP AG

AC815

11-52

Check Conversion Log

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

SAP AG 1999

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.

SAP AG

AC815

11-53

Cleanup: Balance Sheet Transfer

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.
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.

SAP AG 1999

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

SAP AG

AC815

11-54

Other Cleanup Activities

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

SAP AG 1999

SAP AG

AC815

11-55

Other Cleanup Activities: Selection Criteria for


Files

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 ...

SAP AG 1999

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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AC815

11-56

Other Cleanup Activities: Euro Foreign Currency


Loans
Extract of the cash flow of a euro loan:
(Contract currency)
...
08/01/2001 49.28
08/01/2001 16.47
09/01/2001 49.19
09/01/2001 16.56
10/01/2001 49.10
10/01/2001 16.65
11/01/2001 49.02
11/01/2001 16.73
12/01/2001 48.93
12/01/2001 16.82
12/01/2001
0.00
01/01/2002 48.84
01/01/2002 16.91
02/01/2002 48.75
02/01/2002 17.00
...

EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR
EUR

Interest debit pos.


Annuit.repaym. D
Interest debit pos.
Annuit.repaym. D
Interest debit pos.
Annuit.repaym. D
Interest debit pos.
Annuit.repaym. D
Interest debit pos.
Annuit.repaym. D
Exchange rate loss
Interest debit pos.
Annuit.repaym. D
Interest debit pos.
Annuit.repaym. D

(Local currency)
...
08/01/2001 95.88
08/01/2001 32.04
09/01/2001 95.70
09/01/2001 32.22
10/01/2001 95.53
10/01/2001 32.39
11/01/2001 95.37
11/01/2001 32.55
12/01/2001 95.20
12/01/2001 32.72
12/01/2001 0.01
01/01/2002 95.02
01/01/2002 32.90
02/01/2002 94.85
02/01/2002 33.08
...

UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI
UNI

Interest debit pos.


Annuit.repaym. D
Interest debit pos.
Annuit.repaym. D
Interest debit pos.
Annuit.repaym. D
Interest debit pos.
Annuit.repaym. D
Interest debit pos.
Annuit.repaym. D
Exchange rate loss
Interest debit pos.
Annuit.repaym. D
Interest debit pos.
Annuit.repaym. D

SAP AG 1999

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.

SAP AG

AC815

11-57

Other Cleanup Activities: Foreign Currency Loans


- Customizing

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:

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


SAP AG 1999

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.

SAP AG

AC815

11-58

Other Cleanup Activities: General Note

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

SAP AG 1999

SAP AG

AC815

11-59

CCC: Mass Processing


Process management

Loan contract
Loan contract
Loan contract
Loan contract
Loan UNI
contract
1,000,000
1,000,000 UNI
1,000,000 UNI
1,000,000 UNI
1,000,000 UNI

Contract currency changeover

Loan contract
Loan contract
Loan contract
Loan contract
Loan UNI
contract
1,000,000
1,000,000 UNI
1,000,000 UNI
1,000,000 UNI
500,000 EUR

+
4 Logs

Update files, if required

SAP AG 1999

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.

SAP AG

AC815

11-60

CCC: Mass Processing - Customizing


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
SAP AG 1999

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

SAP AG

AC815

11-61

Contract Currency Changeover: Unit Summary

You are now able to:


Convert loan contracts to the euro
Make the required Customizing settings for the
changeover to the euro

SAP AG 1999

SAP AG

AC815

11-62

Exercises
Unit: Contract Currency Changeover to the Euro

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

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.

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.

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

SAP AG

Return to your loan and look at the changes resulting from the conversion.

AC815

11-63

Solutions
Unit: Contract Currency Changeover to the Euro

Create a mortgage loan:

Accounting
Treasury
Loans

Transaction Management
Mortgage Loan
Contract
Create
1-1

Create a loan:
Field name or data category

Value

Company code

TRXX

Product type

30A (mortgage loan)

Enter
Dialog box: Choose partner
Field name or data category

Value

Name

Loan partner XX

Dialog box: Selected partner


Select the partner.
Dialog box: Select role
You can choose one of several roles. Select the role for the main borrower.
Tab: Basic Data

SAP AG

Field name or data category

Value

Loan type

005 (1A loan)

AC815

11-64

Tab: Basic data/Analysis data


Field name or data category

Value

Maturity

6 (maturity > 10)

Tab: Conditions/Basic data


Field name or data category

Value

Commitment capital

100,000 UNI

Repayment type

Annuity

Fixed from

01/01/2000

Fixed until

01/01/2000

Interest condition
Field name or data category

Value

Effective from

01/01/2000

Percent

6%

Frq

Due on

03/31/2000

Calc. date

03/31/2000

Annuity repayment condition


Field name or data category

Value

Effective from

01/01/2000

Percent

2%

IS

Frq

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.
Field name or data category

Value

BnkT

0001

Payment method

Save
In the dialog boxes that appear, select the settings for the partner.
SAP AG

AC815

11-65

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
Field name or data category

Value

Execution date

06/30/2000

ID

TRXX

Tab: Parameters
Field name or data category

Value

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
Field name or data category

Value

Start immediately

Enter
Continue selecting Enter until the payment proposal has been created.

SAP AG

AC815

11-66

Pushbutton: Payment run


Dialog box: Schedule payment run
Field name or data category

Value

Start immediately

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.

Run the payment program:

Accounting
Treasury
Loans

Portfolio
Contract currency changeover to EURO
Currency changeover
Field name or data category

Value

Company code

TRXX

Loan number

Your loan number

Posting date

07/01/2000

Planned record update

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.

SAP AG

AC815

11-67