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AC815 Loans Management

AC815













46D 16.09.2002




AC815 Loans Management 0-1
Copyright 0-2
.................................................................................................................................................................................... 0-4
Course Prerequisites................................................................................................................................................................................................ 0-5
Target Group........................................................................................................................................................................................................... 0-6
Course Overview 1-1
Course Goals ........................................................................................................................................................................................................... 1-2
Course Objectives ................................................................................................................................................................................................... 1-3
Course Content........................................................................................................................................................................................................ 1-4
Course Overview Diagram..................................................................................................................................................................................... 1-5
Main Business Scenario.......................................................................................................................................................................................... 1-6
Loans Management Within SAP Treasury 2-1
Loans Management Within SAP Treasury: Unit Objectives ................................................................................................................................. 2-2
Course Overview Diagram..................................................................................................................................................................................... 2-3
Loans Management within SAP Treasury: Business Scenario .............................................................................................................................. 2-4
SAP Treasury .......................................................................................................................................................................................................... 2-5
Selection of Financial Instruments ......................................................................................................................................................................... 2-6
Short-Term Financial Instruments .......................................................................................................................................................................... 2-7
Medium - Long Term Financial Instruments.......................................................................................................................................................... 2-8
Loan Forms Supported............................................................................................................................................................................................ 2-9
Overview of the Process for New Business - Mortgage Loans............................................................................................................................ 2-10
Possible Procedures for Loan Processing............................................................................................................................................................. 2-11
Technical Overview: Loan Processing ................................................................................................................................................................. 2-12
Loans Management- Financial Accounting.......................................................................................................................................................... 2-13
Integration in FI .................................................................................................................................................................................................... 2-14
Datafeed Architecture ........................................................................................................................................................................................... 2-15
Role - Based Menus .............................................................................................................................................................................................. 2-16
Loans Management Within SAP Treasury: Unit Summary................................................................................................................................. 2-17
Process Flow for Loans Given 3-1
Process Flow in Loans Management: Unit Objectives........................................................................................................................................... 3-2
Course Overview Diagram..................................................................................................................................................................................... 3-3
Process Flow for Loans Given: Business Scenario ................................................................................................................................................ 3-4
General Posting Options I....................................................................................................................................................................................... 3-5
General Posting Options II...................................................................................................................................................................................... 3-6
General Posting Options III .................................................................................................................................................................................... 3-7
General Process Flow.............................................................................................................................................................................................. 3-8
Example: Process Flow for a Loan Posted to a Customer Account....................................................................................................................... 3-9
Contract - 4 Ways of Entering Contracts in the SAP System.............................................................................................................................. 3-10
Contract - Function Overview .............................................................................................................................................................................. 3-11
Contract - Initial Screen........................................................................................................................................................................................ 3-12
Contract - Basic Data ............................................................................................................................................................................................ 3-13
Contract - Condition Header................................................................................................................................................................................. 3-14
Contract - Condition Items.................................................................................................................................................................................... 3-15
Contract - Cash Flow............................................................................................................................................................................................ 3-16
Contract: Disbursement ........................................................................................................................................................................................ 3-17
Disburse Contract: Incidental Costs ..................................................................................................................................................................... 3-18
Saving/Posting Disbursements ............................................................................................................................................................................. 3-19
Disburse Contract: Posting ................................................................................................................................................................................... 3-20


Integration in FI .................................................................................................................................................................................................... 3-21
Planned Record -> Actual Record ...................................................................................................................................................................... 3-22
Automatic.............................................................................................................................................................................................................. 3-23
Disbursement Payment (Bank Transfer): Posting ................................................................................................................................................ 3-24
Automatic Posting: Post Planned Records ........................................................................................................................................................... 3-25
Posting Planned Records Due............................................................................................................................................................................... 3-26
Payment Options ................................................................................................................................................................................................... 3-27
Incoming Payment ................................................................................................................................................................................................ 3-28
Process Flow for Loans Given: Unit Summary.................................................................................................................................................... 3-29
Process Flow for Loans Given: Exercises ............................................................................................................................................................ 3-30
Process Flow for Loans Given: Solutions ............................................................................................................................................................ 3-35
Loan Contract 4-1
Loan Contract: Unit Objectives .............................................................................................................................................................................. 4-2
Course Overview Diagram..................................................................................................................................................................................... 4-3
Loan Contract: Business Scenario .......................................................................................................................................................................... 4-4
Customizing Levels................................................................................................................................................................................................. 4-5
Enterprise Structure Settings................................................................................................................................................................................... 4-6
Financial Accounting Settings ................................................................................................................................................................................ 4-7
Treasury Settings (1)............................................................................................................................................................................................... 4-8
Treasury Settings (2)............................................................................................................................................................................................... 4-9
Mortgage Loan - Processing Seq. / Contract ........................................................................................................................................................ 4-10
Create Contract...................................................................................................................................................................................................... 4-11
Loan - Initial Screen.............................................................................................................................................................................................. 4-12
Customizing Structure: Loans............................................................................................................................................................................... 4-13
Customizing: Define Product Types..................................................................................................................................................................... 4-14
Loan Number ........................................................................................................................................................................................................ 4-15
Customizing: Number Range for Loan Number .................................................................................................................................................. 4-16
Customizing: Product Types................................................................................................................................................................................. 4-17
Customizing: Product Types / Details (1) ............................................................................................................................................................ 4-18
Customizing: Product Types / Details (2) ............................................................................................................................................................ 4-19
Customizing: Status Definitions ........................................................................................................................................................................... 4-20
Customizing: Define Status - Field Selection....................................................................................................................................................... 4-21
Customizing: Business Partners............................................................................................................................................................................ 4-22
Business Partner Data - Overview........................................................................................................................................................................ 4-23
Basic Functions: Customizing for Business Partners (1) ..................................................................................................................................... 4-24
Basic Functions: Customizing for Business Partners (2) ..................................................................................................................................... 4-25
Business Partners .................................................................................................................................................................................................. 4-26
Loans: Customizing for Business Partners (1) ..................................................................................................................................................... 4-27
Business Partners: Roles ....................................................................................................................................................................................... 4-28
Creating a Partner: Application Area.................................................................................................................................................................... 4-29
Loans: Customizing for Business Partners (2) ..................................................................................................................................................... 4-30
Loans: Business Partner Overview....................................................................................................................................................................... 4-31
Create Contract - Basic Data................................................................................................................................................................................. 4-32
Customizing: Basic Data (1)................................................................................................................................................................................. 4-33
Customizing: Basic Data (2)................................................................................................................................................................................. 4-34
Basic Data: Planned/Actual Principle................................................................................................................................................................... 4-35
Basic Data: Clerks................................................................................................................................................................................................. 4-36
Basic Data: Capital Amounts................................................................................................................................................................................ 4-37
Condition Structure............................................................................................................................................................................................... 4-38


Condition Header / Condition Items..................................................................................................................................................................... 4-39
Contract - Condition Header................................................................................................................................................................................. 4-40
Contract: Conditions ............................................................................................................................................................................................. 4-41
Contract - Condition Items.................................................................................................................................................................................... 4-42
Condition Items - Fields........................................................................................................................................................................................ 4-43
Condition Structure: Frequency (1) ...................................................................................................................................................................... 4-44
Condition Structure: Frequency (2) ...................................................................................................................................................................... 4-45
Condition Structure: Condition Types.................................................................................................................................................................. 4-46
Condition Types.................................................................................................................................................................................................... 4-47
Condition Form..................................................................................................................................................................................................... 4-48
Condition Items - Detail Screen............................................................................................................................................................................ 4-49
Condition Items - Detail Screen............................................................................................................................................................................ 4-50
Planned Records.................................................................................................................................................................................................... 4-51
Loans - Cash Flow................................................................................................................................................................................................ 4-52
Effective Calculation of Interest ........................................................................................................................................................................... 4-53
Payment Schedule................................................................................................................................................................................................. 4-54
Conditions: Payment Data .................................................................................................................................................................................... 4-55
Customizing Structure: Loans............................................................................................................................................................................... 4-56
Customizing: Define Flow Types (1) ................................................................................................................................................................... 4-57
Customizing: Define Flow Types (2) ................................................................................................................................................................... 4-58
Assign Flow Types to Flow Category .................................................................................................................................................................. 4-59
Customizing Structure: Loans............................................................................................................................................................................... 4-60
Customizing: Conditions ...................................................................................................................................................................................... 4-61
Customizing: Condition Types ............................................................................................................................................................................. 4-62
Customizing: Condition Groups ........................................................................................................................................................................... 4-63
Customizing: Condition Assignment.................................................................................................................................................................... 4-64
Customizing: Assign Conditions -> Details ......................................................................................................................................................... 4-65
Conditions: Summary ........................................................................................................................................................................................... 4-66
Customizing: Payment Form................................................................................................................................................................................ 4-67
New Business Table.............................................................................................................................................................................................. 4-68
Create Loan: Initial Screen ................................................................................................................................................................................... 4-69
Contract - Correspondence ................................................................................................................................................................................... 4-70
Contract - Generate Correspondence.................................................................................................................................................................... 4-71
Customizing: Correspondence - General.............................................................................................................................................................. 4-72
Customizing: Correspondence - External Flow Types......................................................................................................................................... 4-73
Loan Contract: Unit Summary.............................................................................................................................................................................. 4-74
Loan Contract Exercises ....................................................................................................................................................................................... 4-75
Loan Contract Solutions ....................................................................................................................................................................................... 4-78
Disbursement 5-1
Disbursement: Unit Objectives............................................................................................................................................................................... 5-2
Course Overview Diagram..................................................................................................................................................................................... 5-3
Disbursement: Business Scenario........................................................................................................................................................................... 5-4
Mortgage Loans: Processing Seq./Contract............................................................................................................................................................ 5-5
Disburse Contract: Settlement ................................................................................................................................................................................ 5-6
Disburse Contract: Incidental Costs/Withholding.................................................................................................................................................. 5-7
Disburse Contract: Drawings.................................................................................................................................................................................. 5-8
Data of Person Authorized to Draw........................................................................................................................................................................ 5-9
Saving/Posting Disbursements ............................................................................................................................................................................. 5-10
Integration with R/3 FI/TR Cash Management .................................................................................................................................................... 5-11


Integration: Cash Management Disbursement ..................................................................................................................................................... 5-12
Integration with Treasury Cash Management....................................................................................................................................................... 5-13
Disburse Contract: Posting Log............................................................................................................................................................................ 5-14
Integration: Cash Management - Overview (1).................................................................................................................................................... 5-15
Integration: Cash Management - Overview (2).................................................................................................................................................... 5-16
Customizing: Integration with FI.......................................................................................................................................................................... 5-17
FI Posting Keys for Loans .................................................................................................................................................................................... 5-18
Accounting Customizing: Overview .................................................................................................................................................................... 5-19
Customizing: Product Types and Accounting...................................................................................................................................................... 5-20
Customizing: Status and Accounting.................................................................................................................................................................... 5-21
Assign Flow Types to Condition Groups for Each Application .......................................................................................................................... 5-22
Disbursement: Offsetting Flow............................................................................................................................................................................. 5-23
Disbursement: Flows for Drawings ...................................................................................................................................................................... 5-24
Customizing: Conditions and Accounting............................................................................................................................................................ 5-25
Flow Types and Accounting................................................................................................................................................................................. 5-26
Posting Loans: Overview...................................................................................................................................................................................... 5-27
Posting Loans Given and Taken ........................................................................................................................................................................... 5-28
Customizing: Account Assignment Reference/Account Determination.............................................................................................................. 5-29
Account Assignment Reference............................................................................................................................................................................ 5-30
Account Determination: Posting Specifications (1) ............................................................................................................................................. 5-31
Account Determination: Posting Specifications (2) ............................................................................................................................................. 5-32
Account Determination: (Account) Symbols ....................................................................................................................................................... 5-33
Account Determination: Account Assignment..................................................................................................................................................... 5-34
Postings: Account Determination ......................................................................................................................................................................... 5-35
Determination of Account Assignment Reference - Overview............................................................................................................................ 5-36
Determination of Account Assignment Reference: Characteristics..................................................................................................................... 5-37
Determination of Account Assignment Reference: Allocation............................................................................................................................ 5-38
Link to Customer Accounts .................................................................................................................................................................................. 5-39
Posting via Customer Accounts............................................................................................................................................................................ 5-40
Posting to Customer Accounts: Business Partner................................................................................................................................................. 5-41
Customizing: Disbursement Plausibility Checks ................................................................................................................................................. 5-42
Data of Person Authorized to Draw...................................................................................................................................................................... 5-43
Payments to Third Parties ..................................................................................................................................................................................... 5-44
Customizing: Payments to Third Parties .............................................................................................................................................................. 5-45
Customizing: Integration With TR Cash Management ........................................................................................................................................ 5-46
Integration: Cash Management - Loans I ............................................................................................................................................................. 5-47
Integration with Cash Management - Loans II..................................................................................................................................................... 5-48
Postings: Disbursement to Borrower .................................................................................................................................................................... 5-49
Planned Record -> Actual Record ...................................................................................................................................................................... 5-50
Automatic Payments: Payment Program.............................................................................................................................................................. 5-51
Postings: Payment Program for Disbursement ..................................................................................................................................................... 5-52
Disbursement: Unit Summary .............................................................................................................................................................................. 5-53
Disbursement Exercises ........................................................................................................................................................................................ 5-54
Disbursement Solutions ........................................................................................................................................................................................ 5-55
Payments Due 6-1
Payments Due: Unit Objectives.............................................................................................................................................................................. 6-2
Course Overview Diagram..................................................................................................................................................................................... 6-3
Payments Due: Business Scenario.......................................................................................................................................................................... 6-4
Mortgage Loans - Processing Seq./Contract .......................................................................................................................................................... 6-5


Example Business Process: Debit Position............................................................................................................................................................. 6-6
Debit Position: Mass Processing <-> Per Contract ................................................................................................................................................ 6-7
Posting Planned Records - General Description..................................................................................................................................................... 6-8
Automatic Debit Position Run - Tasks ................................................................................................................................................................... 6-9
Preparation for the Debit Position Run: Update Planned Records....................................................................................................................... 6-10
Automatic Debit Position Run: Post Planned Records......................................................................................................................................... 6-11
Automatic Debit Position Run.............................................................................................................................................................................. 6-12
Postings: Automatic Debit Position...................................................................................................................................................................... 6-13
Accounting - Evaluations I ................................................................................................................................................................................... 6-14
Example Business Process: Incoming Payment ................................................................................................................................................... 6-15
Sources of Incoming Payments for Loans............................................................................................................................................................ 6-16
Payment Options: Bank Statement ....................................................................................................................................................................... 6-17
Debit Memo Procedure......................................................................................................................................................................................... 6-18
Automatic Payments: Payment Program.............................................................................................................................................................. 6-19
Incoming Payments by Direct Debit..................................................................................................................................................................... 6-20
Bank Statement ..................................................................................................................................................................................................... 6-21
Incoming Payment Distribution: Process ............................................................................................................................................................. 6-22
Incoming Payment Distribution: Level ................................................................................................................................................................ 6-23
Incoming Payment Distribution: Overview.......................................................................................................................................................... 6-24
Assignment of Incoming Payments ...................................................................................................................................................................... 6-25
Incoming Transfer: Example of a Manual Bank Statement ................................................................................................................................. 6-26
Examples of Incoming Payment Processing......................................................................................................................................................... 6-27
Processing Incoming Payments (Case 1).............................................................................................................................................................. 6-28
Processing Manual Bank Statements (Case 1) ..................................................................................................................................................... 6-29
Entering the Items (Case 1)................................................................................................................................................................................... 6-30
Incoming Payments by Bank Transfer (1)............................................................................................................................................................ 6-31
Customizing: Manual Bank Statement ................................................................................................................................................................. 6-32
Processing Incoming Payments (Case 2).............................................................................................................................................................. 6-33
Processing Manual Bank Statements (Case 2) ..................................................................................................................................................... 6-34
Entering the Items (Case 2)................................................................................................................................................................................... 6-35
Incoming Payments by Bank Transfer (2)............................................................................................................................................................ 6-36
Customizing: Incoming Payment Distribution..................................................................................................................................................... 6-37
Incoming Payment I. ............................................................................................................................................................................................. 6-38
Incoming Payment II............................................................................................................................................................................................. 6-39
Incoming Payment Postprocessing....................................................................................................................................................................... 6-40
Processing Incoming Payments - Case 2.............................................................................................................................................................. 6-41
IP Postprocessing - Customer Accounts............................................................................................................................................................... 6-42
Incoming Payment Postprocessing: Example....................................................................................................................................................... 6-43
Customizing: Flow Types for Incoming Payments .............................................................................................................................................. 6-44
Offsetting Flows.................................................................................................................................................................................................... 6-45
Customizing: IP Postprocessing ........................................................................................................................................................................... 6-46
Accounting - Evaluations II .................................................................................................................................................................................. 6-47
Evaluations: Loan Account Statement.................................................................................................................................................................. 6-48
Debit Position: Unit Summary.............................................................................................................................................................................. 6-49
Open Items ............................................................................................................................................................................................................ 6-50
Interest on Arrears: Overview............................................................................................................................................................................... 6-51
Overdue Items: Determination of Interest on Arrears.......................................................................................................................................... 6-52
Posting Interest on Arrears.................................................................................................................................................................................... 6-53
Dunning: Overview............................................................................................................................................................................................... 6-54


Influencing Factors for Dunning........................................................................................................................................................................... 6-55
Dunning: Terms .................................................................................................................................................................................................... 6-56
Loan: Business Partner Overview......................................................................................................................................................................... 6-57
Posting to Customer Accounts: Business Partner................................................................................................................................................. 6-58
Contract - Correspondence ................................................................................................................................................................................... 6-59
Dunning Run......................................................................................................................................................................................................... 6-60
Customizing: Financial Accounting Dunning...................................................................................................................................................... 6-61
Customizing: Dunning - Loans (1) ....................................................................................................................................................................... 6-62
Customizing: Dunning - Loans (2) ....................................................................................................................................................................... 6-63
Customizing: Dunning - Loans (3) ....................................................................................................................................................................... 6-64
Open Items: Waiver/Write-Off ............................................................................................................................................................................. 6-65
Open items: Posting .............................................................................................................................................................................................. 6-66
Customizing: Waiver/Write-Off Debit Position................................................................................................................................................... 6-67
Payments Due: Unit Summary ............................................................................................................................................................................. 6-68
Payments due Exercises........................................................................................................................................................................................ 6-69
Payments Due Solutions ....................................................................................................................................................................................... 6-75
Closing Operations 7-1
Closing Operation: Unit Objectives........................................................................................................................................................................ 7-2
Course Overview Diagram..................................................................................................................................................................................... 7-3
Closing Operations: Business Scenario.................................................................................................................................................................. 7-4
Mortgage Loans - Processing Seq./Contract .......................................................................................................................................................... 7-5
Accruals/Deferrals: Overview ................................................................................................................................................................................ 7-6
Accruals/Deferrals: Procedures/Methods ............................................................................................................................................................... 7-7
Accruals/Deferrals: Reset Procedure...................................................................................................................................................................... 7-8
Accruals/Deferrals: Execute ................................................................................................................................................................................... 7-9
Customizing: Accruals/Deferrals I ....................................................................................................................................................................... 7-10
Customizing: Accruals/Deferrals II ...................................................................................................................................................................... 7-11
Valuation: Balance Sheet Valuation..................................................................................................................................................................... 7-12
Balance Sheet Valuation: Initial Screen ............................................................................................................................................................... 7-13
Balance Sheet Valuation: Logs............................................................................................................................................................................. 7-14
Valuation: Defining Principles ............................................................................................................................................................................. 7-15
Valuation: Write-Off/Write-Up Options .............................................................................................................................................................. 7-16
Valuation: Example of the One-Step Principle .................................................................................................................................................... 7-17
Summarization/Reorganization: Overview .......................................................................................................................................................... 7-18
Summarization: Carryforward Records................................................................................................................................................................ 7-19
Summarization: Call Types................................................................................................................................................................................... 7-20
Information System: Overview............................................................................................................................................................................. 7-21
Information System: Loans................................................................................................................................................................................... 7-22
Drilldown Reporting Principle.............................................................................................................................................................................. 7-23
Drilldown Reporting Functions ............................................................................................................................................................................ 7-24
Multidimensional Dynamic Drilldown Reporting................................................................................................................................................ 7-25
Drilldown Reporting Architecture........................................................................................................................................................................ 7-26
Closing Operations: Unit Summary...................................................................................................................................................................... 7-27
Special Cases 8-1
Special Cases: Unit Objectives ............................................................................................................................................................................... 8-2
Course Overview Diagram..................................................................................................................................................................................... 8-3
Special Cases: Business Scenario........................................................................................................................................................................... 8-4
Mortgage Loans - Processing Seq./Contract .......................................................................................................................................................... 8-5
Loans - Cash Flow.................................................................................................................................................................................................. 8-6


Cash Flow: Manual Changes .................................................................................................................................................................................. 8-7
Cash Flow: Executing Changes .............................................................................................................................................................................. 8-8
Loans - Cash Flow: Display Variants..................................................................................................................................................................... 8-9
Business Operations for Contracts........................................................................................................................................................................ 8-10
Business Operation: Process................................................................................................................................................................................. 8-11
Types of Business Operations............................................................................................................................................................................... 8-12
Business Operation Charges: Example................................................................................................................................................................. 8-13
Business Operation: Customizing......................................................................................................................................................................... 8-14
Posting Individual Records................................................................................................................................................................................... 8-15
Transfer Postings: Overview................................................................................................................................................................................. 8-16
Balance Sheet Transfer ......................................................................................................................................................................................... 8-17
Capital Transfer: Grouping and Splitting Contracts............................................................................................................................................. 8-18
Reversal ................................................................................................................................................................................................................. 8-19
Reversing Individual Operations .......................................................................................................................................................................... 8-20
Reversal: General Customizing I.......................................................................................................................................................................... 8-21
Reversal: General Customizing I.......................................................................................................................................................................... 8-22
Reversal: Customizing for Individual Operations................................................................................................................................................ 8-23
Special Cases: Unit Objectives ............................................................................................................................................................................. 8-24
Special CasesExercises ......................................................................................................................................................................................... 8-25
Special cases Solutions ........................................................................................................................................................................................ 8-27
Rollover 9-1
Rollover: Unit Objectives ....................................................................................................................................................................................... 9-2
Course Overview Diagram..................................................................................................................................................................................... 9-3
Rollover: Business Scenario ................................................................................................................................................................................... 9-4
Mortgage Loans - Processing Seq./Contract .......................................................................................................................................................... 9-5
Loans: Rollover....................................................................................................................................................................................................... 9-6
Loans: Changing Contracts..................................................................................................................................................................................... 9-7
Rollover: General .................................................................................................................................................................................................... 9-8
Rollover: Central Terms ......................................................................................................................................................................................... 9-9
Rollover - Overview.............................................................................................................................................................................................. 9-10
Rollover: File Structure......................................................................................................................................................................................... 9-11
Rollover: Creating Main Files .............................................................................................................................................................................. 9-12
Rollover: Creating Files........................................................................................................................................................................................ 9-13
Rollover: Filling Files ........................................................................................................................................................................................... 9-14
Rollover: Creating Tables I................................................................................................................................................................................... 9-15
Rollover: Creating Tables II ................................................................................................................................................................................. 9-16
Rollover: Variants ................................................................................................................................................................................................. 9-17
Variants: Tolerance Limits - Examples ................................................................................................................................................................ 9-18
Rollover: Modification(s) ..................................................................................................................................................................................... 9-19
Rollover: Processing Options ............................................................................................................................................................................... 9-20
Rollover: Register Overview I .............................................................................................................................................................................. 9-21
Rollover: Selecting the Editing Functions............................................................................................................................................................ 9-22
Rollover: Creating Contract Offers....................................................................................................................................................................... 9-23
Rollover: Register Overview II............................................................................................................................................................................. 9-24
Rollover: Process Overview ................................................................................................................................................................................. 9-25
Rollover: Evaluations............................................................................................................................................................................................ 9-26
Customizing: Rollover .......................................................................................................................................................................................... 9-27
Customizing: Define Activity Type...................................................................................................................................................................... 9-28
Customizing: Define Logical Fields..................................................................................................................................................................... 9-29


Customizing: Define Register............................................................................................................................................................................... 9-30
Customizing: Editing Functions I ......................................................................................................................................................................... 9-31
Customizing: Editing Functions II........................................................................................................................................................................ 9-32
Customizing: Assign Functions to Register ......................................................................................................................................................... 9-33
Customizing: Variant-Relevant Condition Types ................................................................................................................................................ 9-34
Customizing: Rollover - Word Processing........................................................................................................................................................... 9-35
Process Management: Overview .......................................................................................................................................................................... 9-36
Process Management: Customizing...................................................................................................................................................................... 9-37
Rollover/Process Management: Number Ranges ................................................................................................................................................. 9-38
Rollover: Unit Summary....................................................................................................................................................................................... 9-39
Prolongation Exercises.......................................................................................................................................................................................... 9-40
Rollover Solutions................................................................................................................................................................................................. 9-43
Complete Process Including Master Data 10-1
Complete Process Including Master Data: Unit Objectives................................................................................................................................. 10-2
Course Overview Diagram................................................................................................................................................................................... 10-3
Complete Process Including Master Data: Business Scenario............................................................................................................................. 10-4
Overview of the Process for New Business - Mortgage Loans............................................................................................................................ 10-5
Possible Procedures in Loans Management ......................................................................................................................................................... 10-6
Mortgage Loans - Processing Seq./Contract ........................................................................................................................................................ 10-7
Master Data - Overview........................................................................................................................................................................................ 10-8
Master Data: Context ............................................................................................................................................................................................ 10-9
Master Data - Partner .......................................................................................................................................................................................... 10-10
Loans - Initial Screen .......................................................................................................................................................................................... 10-11
Business Partner .................................................................................................................................................................................................. 10-12
Master Data - Credit Standing Calculation......................................................................................................................................................... 10-13
Credit Standing Calculation - Business Partner ................................................................................................................................................. 10-14
Creating Credit Standing Calculations ............................................................................................................................................................... 10-15
Customizing: Credit Standing Calculation......................................................................................................................................................... 10-16
Master Data - Objects ......................................................................................................................................................................................... 10-17
Master Data - Procedure ..................................................................................................................................................................................... 10-18
Creating Objects.................................................................................................................................................................................................. 10-19
Object - Loan....................................................................................................................................................................................................... 10-20
Object - Data ....................................................................................................................................................................................................... 10-21
Object - Real Estate Register .............................................................................................................................................................................. 10-22
Object - Section III.............................................................................................................................................................................................. 10-23
Encumbrances ..................................................................................................................................................................................................... 10-24
Loans: Object - Encumbrance............................................................................................................................................................................. 10-25
Creating Encumbrances ...................................................................................................................................................................................... 10-26
Customizing: Object ........................................................................................................................................................................................... 10-27
Master Data - Collateral Value Calculation........................................................................................................................................................ 10-28
Collateral Value Calculation - Procedure........................................................................................................................................................... 10-29
Collateral Value Calculation Long Version - Overview.................................................................................................................................... 10-30
Collateral Value - Details.................................................................................................................................................................................... 10-31
Collateral Value: Building Value ....................................................................................................................................................................... 10-32
Collateral Value: Building Parts ......................................................................................................................................................................... 10-33
Collateral Value: Land Value ............................................................................................................................................................................. 10-34
Collateral Value: Revenue Value ....................................................................................................................................................................... 10-35
Collateral Value: Revenue Value Building Parts ............................................................................................................................................... 10-36
Collateral Value: Proposal Basis ........................................................................................................................................................................ 10-37


Customizing: Collateral Value Calculation........................................................................................................................................................ 10-38
Customizing: Collateral Value Calculation Forms............................................................................................................................................. 10-39
Master Data - Collateral ...................................................................................................................................................................................... 10-40
Master Data - Procedure ..................................................................................................................................................................................... 10-41
Collateral ............................................................................................................................................................................................................. 10-42
Collateral - Data.................................................................................................................................................................................................. 10-43
Create Collateral ................................................................................................................................................................................................. 10-44
Customizing: Collateral ...................................................................................................................................................................................... 10-45
Customizing: Collateral Types ........................................................................................................................................................................... 10-46
Master Data - Filed Documents .......................................................................................................................................................................... 10-47
Master Data - File Procedure .............................................................................................................................................................................. 10-48
Master Data - Procedure ..................................................................................................................................................................................... 10-49
File: Create File: Basic Data............................................................................................................................................................................... 10-50
File: Checklist ..................................................................................................................................................................................................... 10-51
File: Supplement Checklist ................................................................................................................................................................................. 10-52
File: Document Overview................................................................................................................................................................................... 10-53
Customizing: Filed Documents .......................................................................................................................................................................... 10-54
Customizing: Document Types .......................................................................................................................................................................... 10-55
Customizing: Document Groups ........................................................................................................................................................................ 10-56
Customizing: Assign Document Types .............................................................................................................................................................. 10-57
Customizing: Status - Document Groups ........................................................................................................................................................... 10-58
Optical Archiving of Correspondence................................................................................................................................................................ 10-59
Customizing: Optical Archiving......................................................................................................................................................................... 10-60
Master Data - New Business Table..................................................................................................................................................................... 10-61
New Business Table............................................................................................................................................................................................ 10-62
Customizing: Condition Tables .......................................................................................................................................................................... 10-63
Mortgage Loans - Processing Seq./Contract ...................................................................................................................................................... 10-64
Interested Party: Function Overview.................................................................................................................................................................. 10-65
Interested Party.................................................................................................................................................................................................... 10-66
Application/Offer/Contract - Function Overview.............................................................................................................................................. 10-67
Application: Function Overview ........................................................................................................................................................................ 10-68
Create Loan: Initial Screen ................................................................................................................................................................................. 10-69
Loans - Initial Screen .......................................................................................................................................................................................... 10-70
Contract - Basic Data .......................................................................................................................................................................................... 10-71
Offer: Functions Overview................................................................................................................................................................................. 10-72
Offer Proposals ................................................................................................................................................................................................... 10-73
Offer - Basic Data ............................................................................................................................................................................................... 10-74
Configuring Conditions ...................................................................................................................................................................................... 10-75
Waive Contract Offer.......................................................................................................................................................................................... 10-76
Full Waiver.......................................................................................................................................................................................................... 10-77
Partial Waiver...................................................................................................................................................................................................... 10-78
Contract Offer/Contract - Functions Overview.................................................................................................................................................. 10-79
Customizing Structure: Loans............................................................................................................................................................................. 10-80
Customizing: Status Definitions ......................................................................................................................................................................... 10-81
Customizing: Status Transfers ............................................................................................................................................................................ 10-82
Contract- 5 Ways to Enter Contracts in the SAP System................................................................................................................................... 10-83
Application: Decision-Making ........................................................................................................................................................................... 10-84
Decision-Making - Overview ............................................................................................................................................................................. 10-85
Decision-Making................................................................................................................................................................................................. 10-86


Offer Creation - Options ..................................................................................................................................................................................... 10-87
Release in Loans ................................................................................................................................................................................................. 10-88
Release: SAP Business Workplace..................................................................................................................................................................... 10-89
Overview of Workitems Loan ............................................................................................................................................................................ 10-90
Result of Complete Release................................................................................................................................................................................ 10-91
Customizing: Release.......................................................................................................................................................................................... 10-92
Release: Object.................................................................................................................................................................................................... 10-93
Release: Names ................................................................................................................................................................................................... 10-94
Release: Parameters ............................................................................................................................................................................................ 10-95
Portfolio: Loans to Partner.................................................................................................................................................................................. 10-96
Information System: Portfolio - Evaluations...................................................................................................................................................... 10-97
Loans: Customizing for Number Ranges ........................................................................................................................................................... 10-98
References ........................................................................................................................................................................................................... 10-99
Complete Process Including Master Data: Unit Summary............................................................................................................................... 10-100
Exercises ........................................................................................................................................................................................................... 10-101
Solutions............................................................................................................................................................................................................ 10-109
Contract Currency Changeover 11-1
Contract Currency Changeover: Unit Objectives................................................................................................................................................. 11-2
Course Overview Diagram................................................................................................................................................................................... 11-3
Contract Currency Changeover: Business Scenario............................................................................................................................................. 11-4
Contract Currency Changeover: General Information ......................................................................................................................................... 11-5
Changeover Options I ........................................................................................................................................................................................... 11-6
Changeover Options II.......................................................................................................................................................................................... 11-7
Possible Changeover Scenarios ............................................................................................................................................................................ 11-8
Case 1: CCC of LC Loans before LCC................................................................................................................................................................ 11-9
Case 2: CCC of FC Loans before LCC .............................................................................................................................................................. 11-10
Case 3 (Standard): CCC of LC Loans after LCC............................................................................................................................................... 11-11
Case 3 (Additional Case): CCC of FC Loans after LCC................................................................................................................................... 11-12
CCC: Converting the Data.................................................................................................................................................................................. 11-13
Local Currency Changeover and Loans I ........................................................................................................................................................... 11-14
Local Currency Changeover and Loans II.......................................................................................................................................................... 11-15
Contract Currency Changeover (CCC): Process Flow....................................................................................................................................... 11-16
Contract Currency Changeover:Preparation Activities ...................................................................................................................................... 11-17
Preparation Activities: Overview........................................................................................................................................................................ 11-18
General Preparation Activities............................................................................................................................................................................ 11-19
Contract Currency Changeover: Postings........................................................................................................................................................... 11-20
I) Contract Currency Changeover: Accounts ..................................................................................................................................................... 11-21
II: Processing Foreign Currency Loans .............................................................................................................................................................. 11-22
III: Customizing: Currencies............................................................................................................................................................................... 11-23
III: Define Flow Types for Adjustment Postings and Currency Swap Postings................................................................................................ 11-24
III: Currency Swap Postings for Loan Positions and Adjustments to Capital Amounts ................................................................................... 11-25
III: Currency Swap Posting: Open Items............................................................................................................................................................ 11-26
III: Account Determination for Flow Types....................................................................................................................................................... 11-27
III: Correspondence............................................................................................................................................................................................. 11-28
Preparation Activities per Loan .......................................................................................................................................................................... 11-29
I: Process Suspended Data.................................................................................................................................................................................. 11-30
II: Empty Rollover File....................................................................................................................................................................................... 11-31
Contract Currency Changeover:Conversion Phase ............................................................................................................................................ 11-32
Contract Currency Changeover: Conversion Procedure .................................................................................................................................... 11-33


CCC: Start Conversion for Individual Loans ..................................................................................................................................................... 11-34
Check Incoming Payment Distribution Level .................................................................................................................................................... 11-35
Conversion of Master Data ................................................................................................................................................................................. 11-36
Conversion of Flow Data.................................................................................................................................................................................... 11-37
Conversion of Borrower's Note Orders .............................................................................................................................................................. 11-38
Loans Rolled Over .............................................................................................................................................................................................. 11-39
CCC: Example .................................................................................................................................................................................................... 11-40
Currency Swap Posting: Loan Position .............................................................................................................................................................. 11-41
Generating and Posting Adjustment Flows ........................................................................................................................................................ 11-42
Currency Swap Posting: Open Items.................................................................................................................................................................. 11-43
Currency Swap Posting: Premium/Discount ...................................................................................................................................................... 11-44
Currency Swap Postings ..................................................................................................................................................................................... 11-45
Adjustments Made During Conversion .............................................................................................................................................................. 11-46
Balance Adjustments I ........................................................................................................................................................................................ 11-47
Balance Adjustments II....................................................................................................................................................................................... 11-48
Resetting the Contract Currency Changeover .................................................................................................................................................... 11-49
Reset Changeover: Procedure............................................................................................................................................................................. 11-50
Contract Currency Changeover:Cleanup Activities ........................................................................................................................................... 11-51
Cleanup Activities............................................................................................................................................................................................... 11-52
Check Conversion Log ....................................................................................................................................................................................... 11-53
Cleanup: Balance Sheet Transfer........................................................................................................................................................................ 11-54
Other Cleanup Activities..................................................................................................................................................................................... 11-55
Other Cleanup Activities: Selection Criteria for Files ....................................................................................................................................... 11-56
Other Cleanup Activities: Euro Foreign Currency Loans .................................................................................................................................. 11-57
Other Cleanup Activities: Foreign Currency Loans- Customizing.................................................................................................................... 11-58
Other Cleanup Activities: General Note............................................................................................................................................................. 11-59
CCC: Mass Processing........................................................................................................................................................................................ 11-60
CCC: Mass Processing - Customizing................................................................................................................................................................ 11-61
Contract Currency Changeover: Unit Summary ................................................................................................................................................ 11-62
Exercises ............................................................................................................................................................................................................. 11-63
Solutions.............................................................................................................................................................................................................. 11-64


SAP AG 1999
AC815 Loans Management
SAP AG
AC815
AC815
Loans Management
for Financial Services
Loans Management
for Financial Services



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


SAP AG 1999
Copyright 2000 SAP AG. .

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SAP AG .
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Copyright



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SAP AG 1999


:
AC030 3
2 3

AC010 5

AC215 1

.
AC810 3

AC805 3
,

AC825 3


AC815 5


AC816 3

AC820 4


AC830 3





SAP AG 1999
AC030 - Overview of Treasury
AC810 - Basic Functions in Treasury Management
AC010 - Financial Accounting and Reporting
Course Prerequisites





SAP AG 1999
Audience:
Project manager
Project team
Duration: 5 days
Target Group



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

(C) SAP AG AC815 1-1
SAP AG 1999
Course goals
Course objectives
Course content
Course overview diagram
Main business scenario
Contents:
Course Overview




(C) SAP AG AC815 1-2
SAP AG 1999
Course Goals
This course will prepare you to:
Use the functions for loans given and make the
corresponding Customizing settings
Outline typical processes for loans given,
including the transfer to Financial Accounting and
integration with Cash Management




(C) SAP AG AC815 1-3
SAP AG 1999
Course Objectives
At the conclusion of this course, you will be able to:
Carry out all the steps in the loan process and
make the corresponding system settings




(C) SAP AG AC815 1-4
SAP AG 1999
Course Content
Unit 7 Closing Operations
Unit 8 Special Cases
Unit 9 Rollover
Unit 10 Complete Process
Including Master Data
Unit 11 Contract Currency
Changeover
Unit 1 Course Overview
Unit 2 Loans Management
within SAP Treasury
Unit 3 Process Flow for
Loans Given
Unit 4 Loan Contract
Unit 5 Disbursement
Unit 6 Payments Due
Preface




(C) SAP AG AC815 1-5
SAP AG 1999
Loans Management
within SAP Treasury Process flow for
loans given
Loan contract
Payments due
Disbursement
Closing operations
Rollover
Special cases
Complete process
including master data
Contract currency
changeover
Course overview
Course Overview Diagram




(C) SAP AG AC815 1-6
SAP AG 1999
Main Business Scenario
You are using (or have successfully installed) the FI
and Treasury Cash Management modules. You
now want to use SAP Loans Management to enter
and manage loans given by your company, and to
carry out the related accounting tasks.




(C) SAP AG AC815 2-1
SAP AG 1999
Overview of SAP R/3-Treasury
Role of Loans Management
Loan Forms Supported
Process Flow for Loans Given
Interface with Financial Accounting
Datafeed Link
Contents:
Loans Management Within SAP Treasury




(C) SAP AG AC815 2-2
SAP AG 1999
Provide an overview of SAP R/3 Treasury
List the relevant product types
Describe the role of Loans Management within
SAP R/3 Treasury
List the loan forms supported and explain the
process flows in Loans Management
At the conclusion of this unit, you will be able to:
Loans Management Within SAP Treasury:
Unit Objectives




(C) SAP AG AC815 2-3
SAP AG 1999
Process flow for
loans given
Loan contract
Payments due
Disbursement
Closing operations
Rollover
Special cases
Complete process
including master data
Contract currency
changeover
Course overview
Loans Management
within SAP Treasury
Course Overview Diagram




(C) SAP AG AC815 2-4
SAP AG 1999
Before you begin your work in the project team,
you want to gain an overview of SAP R/3 Treasury,
in particular of the Loans Management component.
Which products and processes can be mapped
using Loans Management? What functions are
available?
Loans Management within SAP Treasury: Business
Scenario




(C) SAP AG AC815 2-5
SAP AG 1999
Bank data
Business
partner
Market data
Logistics
CM CM
Financial Accounting Financial Accounting
D D C C D D C C
100 100
100 100
US$
UNI
MRM MRM
TM/LO TM/LO
Forex Forex Money Mkt Money Mkt
Derivatives Derivatives
Securities Securities Loans Loans
Download
Cash Management:
Electronic banking
Liquidity status
Integrated operational
systems
Control functions
Treasury Management/
Loans management
Management of financial
transactions and positions
Transfer to Financial
Accounting
Flexible reporting
Datafeed interface
Market Risk Management
Interest/Currency exposure
Mark-to-Market
Risk analysis/Simulation
Value at Risk
SAP Treasury



The objective of the SAP Treasury module is to ensure efficient liquidity, portfolio and risk
management.
The SAP Treasury module is divided accordingly into three areas:
The Cash Management (CM) component carries out electronic banking tasks and provides
functions for efficient liquidity analysis.
The Treasury Management (TM) and Loans Management (LO) components support the
management of financial transactions and positions.
The Market Risk Management (MRM) component provides methods and procedures for
assessing interest-rate and currency risk positions.

(C) SAP AG AC815 2-6
SAP AG 1999
Mortgage
loans
Borrower's
note loans
Policy loans
Other loans
Fixed-term
deposits
Deposits at
notice
Commercial
Paper
Product Types
Derivatives Forex Loans Securities Money market
Stocks
Subscription
rights
Investment
certificates
Bonds
Convertible
bonds
Warrant bonds
Warrants
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
Hedging instruments
Investment/borrowing
instruments:
Selection of Financial Instruments



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

(C) SAP AG AC815 2-7
SAP AG 1999
Money market
instruments:
- Fixed-term deposits
- Deposits at notice
- Commercial Paper
Forex
instruments:
- Spot transactions
- Fwd transactions
- Forex swaps
Loans
Long Long- -term term
Securities
Borrowing
Loans
L
i
q
u
i
d
i
t
y

p
o
s
i
t
i
o
n
Planning horizon
Deficit Deficit
Surplus Surplus
Short Short- -term term
Money market
Forex
Borrowing
Money market
Forex
Investment
TR TR- -TM TM
TR TR- -TM TM
Short-Term Financial Instruments
Investment




(C) SAP AG AC815 2-8
SAP AG 1999
Loans
Long Long- -term term
Investment
Securities
Borrowing
Borrowing
Loans
L
i
q
u
i
d
i
t
y

p
o
s
i
t
i
o
n
Securities:
- Stocks
- Bonds
- ...
Loans:
- Mortgage loan
- Borrower's note
loan
- Policy loan
- ...
TR TR- -TM TM
TR TR- -TM TM
Planning horizon
Deficit Deficit
Surplus Surplus
Short Short- -term term
Money market
Forex
Borrowing
Money market
Forex
Investment
Medium - Long Term Financial Instruments




(C) SAP AG AC815 2-9
SAP AG 1999
Loans
management
Borrower's note loans
General loans Policy loans
Mortgage loans
Loan Forms Supported



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


(C) SAP AG AC815 2-10
SAP AG 1999
Integration with R/3 FI / TR Cash
Management
Master Data Master Data
Business partner
Credit standing check
New business tables
Filed documents
Collateral
Object master data
Collateral values
Mortgage loans given Mortgage loans given
Inquiry by interested
party
Application
Decision-making
Offer
Contract
Rollover
Process mgmt
Transfer postings
. . .
Position Managemen Position Management t
Evaluation Reports - Information System
Overview of the Process for New Business -
Mortgage Loans



The loans area enables you to manage loans that can be linked to various different master data from a
process view.
There are also numerous Position Management functions which can be utilized for loans which have
been entered in the system.
The transactions in Loans Management are integrated with the R/3 Financial Accounting component
and with TR-Cash Management.
A range of programs allow you to carry out evaluations according to different criteria.

(C) SAP AG AC815 2-11
SAP AG 1999
Evaluation Reports - Information System
Integration with R/3 FI / TR Cash Management
Contract Offer Contract Offer Interest. party Interest. party Application Application Contract Contract
Mortgages Mortgages
General loans
Mortgages
General loans
Policy loans
Mortgages
General loans
Policy loans
Borrower's note loans: Reservation / order /contract Borrower's note loans: Reservation / order /contract
D
e
c
i
s
i
o
n
-
m
a
k
i
n
g
,

i
f

a
p
p
.
Possible Procedures for Loan Processing



There are separate menus for each type of loan. These contain the possible steps in the loan process
for the type of loan in question.
The process in the mortgage loan area is the most complex.
All forms of loan are integrated with R/3 FI and TR-CM and can be evaluated according to various
criteria.

(C) SAP AG AC815 2-12
SAP AG 1999
Product
types
Contract
Conditions
Business
operations
Partner
management
Company
code
Planned
records
G/L
acctg
Accts
receivable
Open
items
Cash-
mgmt
Incoming
payments
Technical Overview: Loan Processing



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

(C) SAP AG AC815 2-13
SAP AG 1999
Interface Interface Interface
User's financial
accounting
system
User's financial User's financial
accounting accounting
system system
Loans
Management
R/3 Financial Accounting
( (FI) FI)
- General Ledger -
Accounts receivable Accounts receivable
Loans Management- Financial Accounting



The system always transfers data that is relevant for posting from Loans Management to the R/3
General Ledger, even if you do not carry out your Financial Accounting using R/3 Basis.
Users who do not use R/3 FI can move their posting data from the R/3 General Ledger to their own
financial accounting system using a customer-specific interface (Extract program).

(C) SAP AG AC815 2-14
SAP AG 1999
Selection of financial
transactions/ flows
to be posted.
Loan contract: Cash flow Loan contract: Cash flow
05/01/YY 150,000.00 Loan disbursement 0001 05/01/YY 150,000.00 Loan disbursement 0001
06/30/YY 1,720.83 Interest debit pos. 0110 06/30/YY 1,720.83 Interest debit pos. 0110
06.30.99 639.05 Annuity repayment 0125 06.30.99 639.05 Annuity repayment 0125
FI Interface
Financial Accounting
Integration in FI



Each loan is based on certain transaction data (such as nominal amounts, interests rates). This
transaction data is used to generate the loan flows, as illustrated above. The loan flows are then used
to determine the data required for posting. This data is transferred to the FI interface along with the
generated flows that need to be posted. The postings are made online using the FI functions.
In the case of loans posted via customer accounts, postings are made to the corresponding customer
account. From here, the payments are transferred to Financial Accounting, where the items can be
cleared in various ways:
The system triggers the required payment transactions and clears the open items automatically, for
example, via the link to the FI payment program or by transferring data from the electronic bank
statement.
You post the payments and clear the open items manually.
The posting logic is based on the account assignment reference defined for the loan transaction and
the user-definable settings for account determination.


(C) SAP AG AC815 2-15
SAP AG 1999
SAP R/3
Datafeed provider
Selective update
Query
Q
u
e
r
y
Reply
Internet/
RFC
TR applications
Information
provider
External
interface
program
Datafeed
log
Datafeed
server
Translation
table
Market
Risk
Mgmt
Securities Forex . . .
Operative
SAP tables
R
e
p
l
y
Market
data
buffer
Datafeed Architecture



There are various ways to maintain current market data (such as, foreign exchange rates, securities
prices, reference interest rates, indexes ...):
Manual entry
Market data file interface
This allows you to maintain the relevant data (manually or via a data provider) using a different
medium, such as MS Excel, and then import the data into the R/3 system in a compatible format.

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


(C) SAP AG AC815 2-16
SAP AG 1999
TR Roles TR Roles
Cash manager
Trader
Back office clerk
Accountant
Risk controller
Credit analyst
Staff acc. for loans
...
TR administrator
Treasury
manager
Assign
activities
Generate
Menus
Role - Based Menus



The following roles are available as templates in Loans Management SAP_TR_LO:
Credit analyst (Credit advisor) CREDIT_ANALYST: Contract acquisition: Collateral/objects;
determination of collateral value; collateral value proposal; release of collateral value; credit
standing check
Loans Officer LOANS_OFFICER: Current business partner and contract management: Business
partner; application data entry; offer creation; contract creation; disbursement entry;
correspondence; loan release.
Rollover Officer ROLLOVER_ OFFICER : Contract renewal: Rollover, correspondence.
Staff Accountant: STAFF_ACCOUNTANT : Monitoring postings and payment flows: Posting
transactions; accrual/deferral calculation; position valuation; financial accounting reporting;
reversal; posting/monitoring incoming payments; clearing
Departmental Manager DEPARTM_MANAGER: responsible for Position Management:
Release; conditions table; reporting

(C) SAP AG AC815 2-17
SAP AG 1999
Provide an overview of SAP R/3 Treasury
List the relevant product types
Describe the role of Loans Management within
SAP R/3 Treasury
List the loan forms supported and explain the
process flows in Loans Management
You are now able to:
Loans Management Within SAP Treasury: Unit
Summary




(C) SAP AG AC815 3-1
SAP AG 1999
General posting options
Create contract
Enter conditions
Cash flow
Disburse contract
Integration with FI
Payment program
Initial incoming payments (interest/repayments)
Contents:
Process Flow for Loans Given




(C) SAP AG AC815 3-2
SAP AG 1999
Provide an overview of the full loan process for a
general loan, from creating new business and
disbursing the contract through to the initial
interest payments and repayments.
At the conclusion of this unit, you will be able to:
Process Flow in Loans Management: Unit
Objectives




(C) SAP AG AC815 3-3
SAP AG 1999
Loans Management
within SAP Treasury
Loan contract
Payments due
Disbursement
Closing operations
Rollover
Special cases
Complete process
including master data
Contract currency
changeover
Course overview
Process flow for
loans given
Course Overview Diagram




(C) SAP AG AC815 3-4
SAP AG 1999
Our sample company decides to use SAP R/3
Loans Management to enter and manage the loans
it grants. It wants to map the transaction process
from contract conclusion through to the
processing of interest payments and repayments.
Process Flow for Loans Given: Business Scenario




(C) SAP AG AC815 3-5
SAP AG 1999
1. Disbursement: a)Preliminary posting" : Balance sheet to Bank clearing
c) Bank statement: Bank clearing to Bank
2. Debit position: a)Preliminary posting": Bank clearing to Balance Sheet
to Interest revenue
c) Bank statement: Bank to Bank clearing
I. Without customer account
General Posting Options I



In the case of loans not posted to customer accounts, the system makes postings to General Ledger
accounts.
For loans not managed on the basis of customer accounts you can use the payment details functions
for payment processing.

(C) SAP AG AC815 3-6
SAP AG 1999
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
II. with customer account and payment program
General Posting Options II



For loans managed on the basis of a customer account, you cannot use the payment details functions
for payment processing, but rather the functions connected with customer accounts.
Postings made to customer accounts are first posted to sub-ledger accounts. When you use customer
accounts you can make use of all the FI Finance functions that are connected with customer
accounts, such as dunning, calculation of interest on arrears, and the payment program for automatic
payments (SAPF110).

(C) SAP AG AC815 3-7
SAP AG 1999
1. Disbursement: a)Preliminary posting: Balance sheet to PR clearing
b) Payment program for PR: PR clearing to Bank clearing
c) Bank statement: Bank clearing to bank
2. Debit position: a) Preliminary posting": PR clearing to Balance 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
III. without customer account, using payment program for payment request (PR)
General Posting Options III



For loans not managed on the basis of customer accounts you can use the payment details functions
for payment processing. This means you can choose either a "direct" posting, see I. or you can use a
payment request, see III.
If you use the payment request function for non-customer posting, the posting logic is the same as
for customer-based processing except that instead of a customer account a clearing account is used
for payment requests, this account can be cleared using a payment program (SAPF111)

(C) SAP AG AC815 3-8
SAP AG 1999
Interest payments / repayments
Disbursement
Contract
Application / Offer
General Process Flow




(C) SAP AG AC815 3-9
SAP AG 1999
Post interest payments/repayments due
Payment program and/or bank statement
Application/Offer/Contract
Payment program
Disburse contract
Example: Process Flow for a Loan Posted to a
Customer Account




(C) SAP AG AC815 3-10
SAP AG 1999
3
2
1
4
Application
Transfer to
Contract
Create
contract
Transfer to
contract
Transfer to
offer
Application
Offer
Transfer to
contract
Contract - 4 Ways of Entering Contracts in the SAP
System



A loan is managed in Position Management when you enter a contract and post a disbursement.
In addition to entering data from legally binding contracts, you are also able to map the contract
acquisition process. You can first enter loan data in the form of an application, it is possible to add
supplementary data at the offer stage and also when you have concluded the final contract.
The different statuses that a loan can or must pass through (Application, Offer, Contract) depend
upon your company-specific settings in Customizing.

(C) SAP AG AC815 3-11
SAP AG 1999
Contract Contract
Change Change
Disburse Disburse
Waive Waive
Full waiver
Partial waiver
Display Display Create Create
Reactivate Reactivate
Contract - Function Overview




(C) SAP AG AC815 3-12
SAP AG 1999
Create Contract: Initial Screen Create Contract: Initial Screen
Company code
Loan number
Product type
0001
/internal/
33A

Business partner selection


Role category: Main loan partner
E N T E R
Contract - Initial Screen



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

(C) SAP AG AC815 3-13
SAP AG 1999
Basic data
Basic 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 ... )
Contract - Basic Data



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

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

(C) SAP AG AC815 3-14
SAP AG 1999
Basic data
Basic 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 ...)
- ...
Contract - Condition Header



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

(C) SAP AG AC815 3-15
SAP AG 1999
Basic data
Basic 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
- ...
Contract - Condition Items



You enter the individual, specific conditions as condition items.

The calculation date refers to financial mathematical calculations, for example the calculation date
for an interest condition is the last interest day of the interest period in question.

The due date refers to the date on which payment is due.

The "Exact payment form" is the combination of payment method (at start of period, mid-period, at
end of period) and frequency in months ( monthly, quarterly, every six months ...) and specifies
when exactly amounts will be calculated or due.

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

(C) SAP AG AC815 3-16
SAP AG 1999
Basic data
Basic data
Conditions
Conditions
Collateral
Collateral
Correspondence
Correspondence
Calculate cash flow
Calculate cash 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
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
Name
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
FType
0001
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120
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
Contract - Cash Flow



The financial mathematical function modules generate a time series of flows, called a cash flow, for
a financial transaction in the application (such as buying stocks, SWAP, loan contact).The cash flow
is generated for the pre-determined calculation period on the basis of the conditions belonging to a
financial transaction.
The cash flow for the financial transaction forms the starting basis for all trading processes,
transaction processes, and Position Management processes as well as for evaluation activities within
Treasury.
The cash flow serves, among other things, as a foundation for:
- effective interest calculation
- posting
- time-based accruals/deferrals on expenses and revenue

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

(C) SAP AG AC815 3-17
SAP AG 1999
Contract: Disbursement
Create Disbursement: Basic Data Create Disbursement: Basic Data
Disbursement basic data
CoCd.
Loan
Flow type
Text
Payment date
IntValDate
Withhold up to
Posting control
Customer
Payment methodPartner bank type
House bank
A_Loan disbursement
Capital data
Current contr. cap.
Nominal capital
Disbursement in %
Gross pmnt amount
Net pmnt amount
Disbursement rate
General loan 0001
40000000
33A
0001
05/01/YY
05/01/YY
05/01/YY
100.000,00 UNI
0,00
100,0000
100.000,00 UNI
100,00000
99,900.00
Automatic Debit Position Run
Incl..
PS1
Borrower 00
100000026
2
Bank transfer with single payment
Flow type A_Loan disbursement
Text
Payment date
IntValDate
Withhold. Up to
Posting control
Customer
Payment meth.
Partner bank type
House bank
Disbursement basic data
Contract: Disbursement
Enter Disbursement: Basic Data Enter Disbursement: Basic Data
Disbursement basic data
CoCd
Loan
Flow type
Text
Payment date
IntValDate
Withhold. Up to
Posting control
Customer
Payment meth.
Partner bank type
House bank
A_Loan disbursement
Capital data
Current contr. cap.
Nominal capital
Disbursement in %
Gross pmnt amount
Net pmnt amount
Disbursement rate
General loan 0001
40000000
33A
0001
05/01/YY
05/01/YY
05/01/YY
100,000.00 UNI
0.00
100.0000
100,000.00 UNI
100,000.00
99,900.00
Automatic debit position
Incl..
PS1
Loan partner 00
100000026
2 Bank transfer with single payment



You make the following specifications for the disbursement :
- Payment indicator: set / not set: The disbursement is posted to a customer account/ a non-
customer account.
- Payment date: The date of disbursement transferred to Financial Accounting and to Cash
Management.
- Interest value date inclusive /exclusive : The date of disbursement is / is not included in the
interest calculation for the disbursement amount.
- Payment method: The payment method must be set as a payment method with single payment
in FI. This prevents the system from clearing the disbursement amount with other amounts in
the payment program.
- The partner bank type encodes the bank details for the borrower that are maintained in the
business partner master record.
- If you define a house bank then during the payment run the system debits the disbursement
amount from an account at this house bank. The system selects an account in the payment run
according to the rules defined there. If you do not define a house bank with the disbursement
the system determines a suitable bank and a suitable account in the payment run itself.
- Disbursement in %: Full disbursement or partial disbursement
- Gross payment amount or net payment amount: In the case of partial waivers with incidental
costs you decide whether incidental costs should be calculated to the disbursement amount (net)
or raised to the disbursement amount including capital amounts (gross). (Gross: value-dated
amount, net: actual flow of cash).
Example: Capital amount 100 000 UNI. First partial disbursement 40% Incidental costs 2 000
UNI
Case 1: Gross payment amount 40 000 --> Net 38 000 Case 2 Gross 42 000 -->Net 40 000.
Final partial disbursement 60%, no incidental costs: gross / net case 1: 60 000; case 2: 58 000.

(C) SAP AG AC815 3-18
SAP AG 1999
Create Disbursement: Incidental Costs Create Disbursement: Incidental Costs
Capital amounts
Available capital Value-dated capital
Flows
Flow type
Processing charges
Company code
Loan number
Borrower
General loan
Contract
Loan partner 00
0001 33A
40000000 60
Due on
Withheld
Settlement
amount
Payment
method
100,000.00 100,000.00
3145 05.01.YY 100.00 X
Disburse Contract: Incidental Costs



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

(C) SAP AG AC815 3-19
SAP AG 1999
Disbursement
Save Post (manually)
P
Post manually Post automatically
Automatic
debit position
or
"Manual
debit position"
Automatic
debit position
I I
I
Prerequisite:
Field Posting control
Prerequisite:
Field Posting control
Saving/Posting Disbursements



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

(C) SAP AG AC815 3-20
SAP AG 1999
Balance sheet account
46020
Disb. reconciliation acct
150600
1) 100,000 100,000 1)
Rec. reconciliation acct
150000
2) 100 100 2)
Other revenues
299100
3) 100,000 99,900 3)
Technical clearing acct
194200
100 3) 4) 100
100 4)
1) Loan disbursement
2) Incidental costs debit position
3) Incidental costs withheld: Disbursement reduced (only posted in FI)
4) Incidental costs withheld: Incoming payment
Disburse Contract: Posting



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

(C) SAP AG AC815 3-21
SAP AG 1999
Selection of financial
transactions/flows
to be posted.
Loan contract: Cash flow Loan contract: Cash flow
05/01/YY 150,000.00 Loan disbursement 0001
06/30/YY 1,720.83 Interest debit pos. 0110
06/30/99 639.05 Annuity repayment 0125
05/01/YY 150,000.00 Loan disbursement 0001
06/30/YY 1,720.83 Interest debit pos. 0110
06/30/99 639.05 Annuity repayment 0125
FI Interface
Financial Accounting
Integration in FI



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

(C) SAP AG AC815 3-22
SAP AG 1999
Cash flow in contract
Post disbursement
Cash flow in contract
Payment date Settlement amnt Name P FType
05/01YY 100.000,00 Loan disburse. P 0001
Payment date Settlement amnt Name P FType
05/01/YY 100.000,00 Loan disburse. I 0001
'Planned
record'
'Actual
record'
Planned Record -> Actual Record



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

(C) SAP AG AC815 3-23
SAP AG 1999
Proposal data set Proposal data set
N
R Edit
proposal
Master Master
Payment Payment
control control
Current Current
parameters parameters
Documents Documents
Proposal run
Proposal data Proposal data
N
R Edit
proposal
Master Master
Payment Payment
control control
Current Current
parameters parameters
Documents Documents
Automatic Payment: Payment Program
Payment run
Print data
Print program Print program
Check Bank Bank Payment Payment
transfer transfer advice summary
Pmnt
medium
Automatic



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

(C) SAP AG AC815 3-24
SAP AG 1999
Balance sheet acct
46020
Disb. reconciliation acct
150600
1) 100,000 100,000 1)
Rec. reconciliation acct
150000
2) 100 100 2)
Other revenues
299100
3) 100,000
99,900 3)
Technical clearing acct
194200
100 3) 4) 100
100 4)
5) Payment program
6) Bank statement
Bank clearing account
113105
6) 99,900 99,900 6)
Bank account
113100
99,900 5)
5) 99,900
Disbursement Payment (Bank Transfer): Posting




(C) SAP AG AC815 3-25
SAP AG 1999
?
to
to
to
to
0001
40000000
Company code
Contract number
Partner
Product type
Up to and incl. due date
x Test run
x Log
01 Loan Partner 00 150100 UNI
Repayment receivables
1.333,33 D 0120
01 Loan Partner 00 UNI
Interest receivables
150200 1.166,67 D 0110
50 273100
Interest received
UNI 1.166,67 C
50 46000
Other loans
UNI 1.333,33 C
Automatic Posting: Post Planned Records



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

(C) SAP AG AC815 3-26
SAP AG 1999
Balance sheet account
46020
Disb. reconciliation acct
150600
1) 100,000 100,000 1)
Rec. reconciliation acct
150000
2) 100 100 2)
Other revenues
299100
3) 100,000
99,900 3)
Technical clearing acct
194200
100 3) 4) 100
100 4)
7) Post planned records: Post (interest and repayment) amounts due (P--->A)
Bank clearing account
113105
6) 99,900 99,900 6)
Bank account
113100
99,900 5)
5) 99,900
Rec. reconciliation acct
150100/150200
Interest revenues
273100
7) 2,500
1,167 7)
1,333 7)
Posting Planned Records Due




(C) SAP AG AC815 3-27
SAP AG 1999
Payment received from
customer
Bank statement Payment program
Bank statement
By bank transfer
or by check
By direct debit
Payment Options



The customer has various options for paying due amounts. You have to carry out different
processing activities for these options:If the customer pays by transfer, you receive the payment and
the information from the account statement of your house bank.

If the customer pays by direct debit, you trigger payment by executing the payment run. The money
is collected using the payment media generated. The account statement data informs you about the
incoming payment.

(C) SAP AG AC815 3-28
SAP AG 1999
Balance sheet acct
46020
Disb. reconciliation acct
150600
1) 100,000 100,000 1)
Rec. reconciliation acct
150000
2) 100 100 2)
Other revenues
299100
3) 100,000
99,900 3)
Technical clearing acct
194200
100 3) 4) 100
100 4)
8) Incoming payment for the amounts due, for example by bank transfer
Bank clearing account
113105
6) 99,900 99,900 6)
Bank account
113100
99,900 5)
5) 99,900
Rec. reconciliation acct
150100/150200
Interest revenues
273100
7) 2,500
1,167 7)
1,333 7)
2,500 8a)
2,500 8a) 8b) 2,500
2,500 8b)
Incoming Payment




(C) SAP AG AC815 3-29
SAP AG 1999
provide an overview of the full loan process for a
general loan, from creating new business and
disbursing the contract through to the initial
interest payments and repayments.
You are now able to:
Process Flow for Loans Given: Unit Summary




(C) SAP AG AC815 3-30
Process Flow for Loans Given: Exercises



Unit: Process Flow for Loans Given



At the end of these exercises, you will be able to:
Explain the process flow for creating loans, disbursements, and the
first interest payments and repayments.


Your company has granted a loan to a customer. You want to enter the
contract details and the conditions agreed in the system.
1 Create a contract for a mortgage loan in your company code TRXX (XX = group ID).
Use the business partner that has already been created in the role "Main borrower" for
your group (Loan partner XX).

1-1 Enter the basic data for the loan:
Basic data:
Loan type: 1A
Loan category: Standard loan
IPD control: Contract variant
Analysis data:
Maturity: > 10 years (!)



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


(C) SAP AG AC815 3-31

1-2 Enter the loan conditions.
Condition header:
Commitment capital: 100,000 UNI
Disbursement rate: 100%
Fixed period: 10 years
Repayment type: Annuity
Discount determination: Total with first disbursement.

Individual condition items:
Nominal interest at a rate of 6%, payment every 6 months, at the end of the
period.
Annuity repayment at an annual rate of 2%, due every 6 months, at the end
of the period, immediate settlement of the repayment.
Processing charges of 500 UNI are due at the end of each year.

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

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

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

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

(C) SAP AG AC815 3-32




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.

2 Enter a loan disbursement.
2-1 To enter a loan disbursement:
Select the flow type that controls disbursement.
Enter the text you want to appear in the disbursement.
Check the payment method and enter the bank details for your business
partner.

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

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

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

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

(C) SAP AG AC815 3-33




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.


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

5-2 Simulate the automatic debit position run.
Enter the following selection criteria:
Company code: TRXX ( XX = your group ID)
The loan number
The corresponding debit position and posting date

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

(C) SAP AG AC815 3-34

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

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



(C) SAP AG AC815 3-35
Process Flow for Loans Given: Solutions



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.

1 Enter a mortgage loan:
Accounting
Treasury
Loans
Transaction Management
Mortgage Loan
Contract
Create

Field name or data type Values
Company code TRxx
Product type 30A



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

Select "Loan partner XX" in the role of main borrower as your business partner.
1-1 Enter the information specified in the contract master data (basic data).

1-2 Go to the condition overview and enter the values specified in the condition
header and the data fields for the condition items.

(C) SAP AG AC815 3-36

1-3 If you select Term end and Effective int., the system calculates these values and
enters them in the corresponding fields.

1-4 Select Cash flow to display the cash flow.

1-5 Click the button for the business partner overview on the top left part of the
screen.

(C) SAP AG AC815 3-37




Unit: Process Flow for Loans Given
Topic: Loan disbursement


2 Disbursement
2-1 To execute a disbursement:
Accounting
Treasury
Loans
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 Select Post to carry out the posting and display the posting log.

3 Customer line item display
Accounting
Financial Accounting
Accounts Receivable
Account
Display/Change Line Items
On the selection screen, enter your customer number, the company code, and the
appropriate time interval.

(C) SAP AG AC815 3-38

4 Display the contract:
Accounting
Treasury
Loans
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.

(C) SAP AG AC815 3-39




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


5 Automatic debit position run for interest payments and repayments
5-1 Display the due date via
Accounting
Treasury
Loans
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.

(C) SAP AG AC815 3-40

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.





(C) SAP AG AC815 4-1
SAP AG 1999
Create contract
Generate correspondence
Customizing:
- Loans and Financial Accounting
- Business partners
- Product types
- Flow types
- Conditions
- Correspondence
Contents:
Loan Contract




(C) SAP AG AC815 4-2
SAP AG 1999
Enter a loan given with different condition
structure variants (such as fixed interest, variable
interest, suspended repayment)
Make the system settings for:
- Representing the product types you require
with the corresponding conditions
- Generating correspondence
At the conclusion of this unit, you will be able to:
Loan Contract: Unit Objectives




(C) SAP AG AC815 4-3
SAP AG 1999
Loans Management
within SAP Treasury
Payments due
Disbursement
Closing operations
Rollover
Special cases
Complete process
including master data
Contract currency
changeover
Course overview
Process flow for
loans given
Loan contract
Course Overview Diagram




(C) SAP AG AC815 4-4
SAP AG 1999
Our sample company grants mortgage loans with
individual conditions.
A copy of the loan contract is sent to the customer
for signature.
In the application, we want to use different
condition structures and generate correspondence.
The relevant settings must be made in
Customizing.
Loan Contract: Business Scenario




(C) SAP AG AC815 4-5
SAP AG 1999
General Customizing Settings:
1. Enterprise Structure
2. Financial Accounting
3. Treasury
Loans Management
Customizing Levels





(C) SAP AG AC815 4-6
SAP AG 1999
Enterprise Structure Settings
Implementation Guide for R/3 Customizing
Enterprise Structure
Financial Accounting
Define, Copy, Delete, Check Company Code
:
Company code 0001
Company name Group 01
Language
_
_
_
Definition
_
City London
Land EN
Currency UNI



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

(C) SAP AG AC815 4-7
SAP AG 1999
Implementation Guide for R/3 Customizing (IMG)
Financial Accounting Global Settings
Financial Accounting
Company Code
_
_
+
_
_
+
+
Enter Global Parameters
Company code
Chart of accounts
Max. exchange rate deviation
0001
INT
10%
Fiscal year variant
Financial Assets Mgmt active
K4
Financial Accounting Settings



This data includes the chart of accounts your company (= your company code) uses, the fiscal year
variant you have adopted and so on.
If you want to use the Loans component, you need to flag the 'Financial Assets Mgmt active' field.


(C) SAP AG AC815 4-8
SAP AG 1999
_
Treasury
Basic Functions
_
_
Implementation Guide for R/3 Customizing (IMG)
+
+
+
Organization
+
_
_
_
Treasury Management
_
_
Define Company Code Additional Data
_
Company code 0001
1
Calendar
Reg. reporting active
Ident. no. ID 5
01
Treasury Settings (1)



For each company code you can maintain specific data for the Treasury area.

The calendar you enter here is used for the working day check for the following:
- Disbursement
- Entry of business operations
- Incidental costs (manual posting)
- Manual changes to flows in the cash flow
- Orders for borrower's note loans



(C) SAP AG AC815 4-9
SAP AG 1999
_
Treasury
Loans
_
_
Implementation Guide for R/3 Customizing (IMG)
+
+
+
Basic Settings
+
_
_
_
Treasury Management
_
Installation parameters
_
Currency
Word processing
Archiv. install.
UNI
SAPSCRIPT
x
Treasury Settings (2)



The fundamental Loans Management settings for processing your loans can be made in Customizing
using the basic settings.
You determine here for example, which currency is to be set as default automatically for objects,
parts of buildings and the interested party or which word processing function will be used during the
processing of your loan.
If you want to use optical archiving for your loan correspondence, you flag the corresponding field.

(C) SAP AG AC815 4-10
SAP AG 1999
- Create loan
- Business partners
- Conditions
- Correspondence
Interested Interested Applicat. Applicat. Offer Offer Contract Disburse Disburse- - Other Other Rollover Rollover
party party ment ment activities activities
Mortgage Loan - Processing Seq. / Contract
Portfolio / Accounting Transaction Management




(C) SAP AG AC815 4-11
SAP AG 1999
Contract Contract
Change
Create Create
Display
Mortgage Borrower's note Policy loan General loan
Create Contract



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

(C) SAP AG AC815 4-12
SAP AG 1999
Create Contract: Initial Screen Create Contract: Initial Screen
Company code
Loan number
Product type
0001
/internal/
33A

Business partner selection


Role category: Main loan partner
E N T E R
Loan - Initial Screen



A loan (application, offer, contract) is identified uniquely in the system by means of the loan
number. The loan number can be assigned externally by the user, or internally by the system,
depending on your Customizing settings.
When you create a contract, you must specify the company code, the product type and (if you are
using external number assignment) the loan number. You then enter the loan partner.

(C) SAP AG AC815 4-13
SAP AG 1999
APPLICATION LEVEL
Product cat. Product cat. Flow category Flow category Calculation cat. Calculation cat.
Condition type Condition type
SYSTEM LEVEL
Status cat. Status cat.
Product type Product type
Condition group Condition group
Status definitions/ Status definitions/
status transfers status transfers
Flow type Flow type
Customizing Structure: Loans



Product categories classify the various financial borrowing and investment instruments. They are
predefined in the system and apply for all company codes. Product categories cannot be modified by
the user.
Product types represent a refinement of product categories at user level and, unlike product
categories, can be defined by the user. When you define a product type, you specify the framework
for financial instruments of this product type. A product type can only be assigned to one product
category. However, several product types may be assigned to the same product category. You create
and process your individual financial transactions on the basis of product types.
The following activities are dependent on the product type:
- Assignment of different processing methods
- Selections for reporting
- Assignment of different structure characteristics
- Definition of yield curves in Market Risk Management
Example: Product category "mortgage loan"; product type 1 "Fixed-rate mortgage loan", product
type 2 "variable-rate mortgage loan". Since both product types belong to the same product category,
the system processes them in the same way. The subdivision is used for reporting purposes.

(C) SAP AG AC815 4-14
SAP AG 1999
Product type 30A
Short text Mortgage
Product category
Assets/Liab.
300
0
Order management
Interest per disbursement
1
Long text Mortgage loan given
Condition group
Price gain
Collateral active Objects active User exit active
201
Limit group
a a
a
Customizing: Define Product Types



You make the following general settings for the product type (settings apply for all company
codes):
Product category: Controls how the system processes the loan in the background
Assets / Liabilities: Loans given / loans taken (received)
Condition group: Determines the conditions the user is allowed to enter for loans in this product
type.
Limit group: Determines the limit product group to which amounts from loans in this product type
are assigned for limit management.
Interest per disbursement: If several partial disbursements are entered in the same interest period, the
system either generates a nominal interest flow for each partial disbursement (indicator set) or
calculates the nominal interest flow for the cumulative amount (balance method, flag not set).
Example: See F1 Help
Price gain: If this indicator is set, you can make a net posting instead of a gross posting. This field is
relevant for borrower's note loans.
Order management: For each borrower's note product type you can define whether the borrower's
notes should be processed using the order management functions or in the same way as a "standard
loan".
Collateral/objects/user exit active: For each product type you can specify whether the tabs for
entering collateral and/or object data should appear when a loan is created (the field Objects active is
only relevant for the product category "mortgage loan").

(C) SAP AG AC815 4-15
SAP AG 1999
Loan
no. 10000007
Number assignment for loans
Simple number
assignment
With number
composition
I. II.
Loan Number



The numbers for loans (application, offer, contract) can either be specified by the person who enters
the loan (external), or assigned by the system according to certain rules (internal).
If you use simple number assignment, the system assigns the loan numbers sequentially from a
predefined number interval.
If you use number composition, you can determine the components and the exact structure of the
loan number yourself.

(C) SAP AG AC815 4-16
SAP AG 1999
-> Product Types -> Loan Numbers -> Loan Number
10000000
No. From number To number Current number
01
Ext
19999999 10000005
-> Product Types -> Loan Numbers -> Define Number Components
_ _ _ _ _ _ _ _ _ _ _ _ _
Component 1 Component 2 ...
Internal / external / in conjunction with an object or file
I.
II.
Customizing: Number Range for Loan Number
-> Assign Number Components
to Product Type



If you use simple internal number assignment, the number range must be numerical. If you use
number composition or external number assignment, you can assign alphanumeric loan numbers.
A special user exit is available for applying a check digit procedure to the number composition. The
name of the corresponding module pool is SAPFF67N.

(C) SAP AG AC815 4-17
SAP AG 1999
Product Types -> Company Code-Dependent Settings for Product Type
PTyp Text Prod. cat. Cond. group
30A Mortgage loan given 300 1
30B Mortgage loan taken 300 504
31A Borrower's note loan 310 2
33A General loan given 330 4
33B General loan taken 330 504
...
"Double "Double- -click" click"
for detailed for detailed
information information
see
following pages
Customizing: Product Types




(C) SAP AG AC815 4-18
SAP AG 1999
Product Types -> Company Code-Dependent Settings for Product Type - Details
Customizing: Product Types / Details (1)
Company code
Product type
Product category
Condition group
0001
300
504
Dunning block
01
CM period 4
FI posting 3 Actual record in Treasury, posting in FI with customer
No. status 10000088
Number range
A
30A
Mortgage loan given
Ref. management 2
No. char.
MU Sample recNoRg
Dunning active
Decision-making active
Pmnt form start
Price gains w/o prop. gains fr. def. WB
Payment details
Rev. level IP
Number range
Basic settings
Indicators
Reversal



Number range: Number range interval for simple number assignment
No. of characters: Total number of characters of the loan numbers for number composition
Sample loan number range: Number range for creating sample loans
CM period: Period in years for which the planned records calculated for a position are updated in the
database. This period is also used as a basis for updating Cash Management.
Example: See F1 Help
FI posting: Determines whether postings for this product type should be made to a customer account
or directly to G/L accounts. In the loans area, the values 3 (with customer account) and 4 (without
customer account) are supported. 3: Posting on the basis of customer accounts or without customer
accounts; 4: Only permits postings not made to customer accounts.
Dunning block: Used in conjunction with flows that you as the lender owe to third parties and have
entered in the contract; Example: Agent's commission This dunning block prevents a reminder being
sent to the borrower if the payment is delayed.
Reference management: Use of the reference management functions to see how payments have been
assigned for related positions
Dunning active: Include loans of this product type in the dunning run? (Prerequisite: FI posting = 3)
Price gains w/o prop. gains fr. def. WB: Relevant for borrower's note loans
Interest value date inclusive: Default value for the inclusive indicator for disbursement
Payment details: If you set this indicator for the product type, you can use the functions for
maintaining the payment details in the loan and in the business partner standing instructions, and use
the payment request function. (Prerequisite: FI posting = 4)

(C) SAP AG AC815 4-19
SAP AG 1999
Customizing: Product Types / Details (2)
Product types -> Company Code-dependent Settings for Product Type - Details
Company code
Product type
Product category
Condition group
0001
300
1
Defaults:
Plan/Act.pr.
Posting system 0
Eff.int.method 1
Alt.eff.int.meth. 4
Int.calc.method 1
0
IntValD Incl.
PAngV
Moosmller
360E/360
Disc. determin.
Payment block IP
Payment block OI
Payment method 2
1
30A Mortgage loans given
Currency
UNI
IPD-Control
Payt summarization
Incoming payments
Withhold Disb.
Accrued/deferred dis.
1
Field selection
.
.
N
V
3 Contract
3 Contract



Currency: When you create a loan contract, the contract currency is set as default. If you do not make
an entry the system uses the company code currency.
Posting system: For borrower's note loans: Gross or net posting, in other words, posting to the
nominal value or to an exchange rate.
IPD Control: Determines the level of control of the distribution of incoming payments that are made
by bank transfer.
Payment Summarization: Determines the level of control of the distribution of incoming payments
that are made by direct debit.
Generate Incoming Payment Immediately: When an entry is made, the system carries out the
appropriate incoming payment postings in the debit position for due amounts immediately.For
example, in cases of loans to employees where due amounts are deducted from the loan partners
salary.
Withhold Disbursement and Payment Method: Default settings for disbursement (Default setting of
the withhold indicator for incidental costs and a payment method by single payment)
Payment Block IP: Blocks returned debit memos to prevent these from being included again at a
later date. The block prevents automatic processing from being executed, you can carry out manual
processing in Treasury. (Block definitions: You cannot change the blocks in the payment proposal
(without flag); no block for manual payment (without flag))
Payment Block Open Items: Credit (such as overpayment, advance payment) is not returned to the
customer by transfer. You can only carry out automatic or manual incoming payment post
processing in Treasury. (Block definition: You cannot change the blocks in the payment proposal
(without flag); block for manual payment (flag set))
Field Selection: For many fields in Loans Management you can configure whether an entry is
required or optional or whether the field is displayed or hidden.

(C) SAP AG AC815 4-20
SAP AG 1999
Entry 1 of 9
CS DGr
1
Status name Int. level
1
Company code
Product type
0001
30A
31
20 2 33
31 1 32
34 2 34
37 3 37
60 3 35
Contract offer waived
Contract waived
Contract
FI CG AFS
X
X
X
X
X
X
3
3
Contract offer
Applic. waived/deactivated
Application
Field selection
X
Company Code-Dependent Settings for Product Type - Status per Product Type
Customizing: Status Definitions



CS: Contract status: In Customizing, you must define the statuses you want to use in your company
(application, offer, contract, waiver). The system uses the internal status (internal level) to control
processing.
DGr.: The document group determines the checklist that can be processed for loan documents in the
respective status.
FI: If the value "3" (FI posting to a customer account) is entered in this column for a particular
status, this is the first status in which postings can be made to a customer account (or to a G/L
account, see product type). If no customer account exists for the business partner, the system also
generates a customer account. If the value "4" is entered in this column, this is the first status in
which postings can be made (not to customer accounts).
AFS: Alternative field selection: You can either make the field selection control settings for the
product type (the settings then apply for all statuses for this product type) or for each status of a
product type (for example, if you want to use the fields differently in application and contract status).
If the indicator in this column is set, field selection control per status applies. If the indicator is not
set, the field selection settings apply for all statuses of a product type.
CG: Cash flow generation: The system saves the loan data to the database for the first time when a
disbursement is saved or posted. If you require database records beforehand, you can set the CG flag
for an earlier status. The system then writes the loan records to the database when the loan reaches
this status. Example: Calculating commitment interest

(C) SAP AG AC815 4-21
SAP AG 1999
Basic data classification basis
Conditions basic data
Correspondence
...
Choose Choose
Basic data
Loan type
Loan class
Primary collateral
Select group
Define Status per Product Type - Field Selection - Maintain Field Status Group
Hide Req.entry Opt.entry Display
Customizing: Define Status - Field Selection



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


(C) SAP AG AC815 4-22
SAP AG 1999
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
Customizing: Business Partners



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


(C) SAP AG AC815 4-23
SAP AG 1999
Central data
General
role data
Company code
data:
Business
partner
Name
Address overview
Bank details
Personal data
Employment data
Legal data
Financial year
Relationships
Role overview
Role data
Credit standing
Control data
Reporting data
Controls
Bank
Account management
Account interest
calculation
Autom.payt trans.Payt data
Dunning data
Reporting data
Controls
Relationships
Business Partner Data - Overview



The data that you can enter for the business partner is divided into 3 sections:
- Central data - This data is available for all business partners irrespective of their roles.
- General data - .This is stored centrally for all roles. The amount of data you can access is
dependent upon role category and the configuration in Customizing (Role-view-allocation).
- Company code-dependent data: This data is only relevant for the individual role categories in
the company code concerned.

Each of the sections is divided into different views.

For example: The Central data section contains, among others, the following views:- Name- Address
overview- Bank details- ...

(C) SAP AG AC815 4-24
SAP AG 1999
Business Partners
Control Data
Define Role-View
Assignment
_
_
_
Roles
General
_
_
_
_
+
Define Role Types
RType Name RType RoleC
A100 Main borr. 0100 Main partn.
A102 Main lender 0100 Main partn.
Role View Name of role Name
Acct mgmt 0100
0100
Main partn.
Main partn.
0010
Pmnt data 0040
Basic Functions: Customizing for Business
Partners (1)
Name RoleC




In Customizing you can define which data views can be accessed for each role category.
Example: If you do not assign the view "Dunning data" to the role category "Issuer", the user cannot
call up the dunning view for this role category in the application.

You can assign views from the general data and company code data areas to roles. The user can
always access the central data views - for all role categories.

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



(C) SAP AG AC815 4-25
SAP AG 1999
TR
Create Create
business business
partner partner
FI
Create Create
customer customer
Customizing:
Grp. NR Acct group Descr. of group.
TR01 01 DEBI TR partner (int)
TR02 02 DEBI TR partner (ext)
No. Fr. no. To no. Curr. no. Ext.
01 000001 000099 5
02 AAAAAA ZZZZZZ X
BP grouping
Number ranges
created
automatically
Basic Functions: Customizing for Business
Partners (2)



You use the business partner grouping to define the number range to be used for the business partner.
This number range controls whether the business partner key is assigned internally by the system, or
externally by the user. It also determines whether the key must be numeric or alphanumeric.
In addition, you use the business partner grouping to create the link to Financial Accounting by
assigning a corresponding customer account group. If you create a partner and call up views that are
relevant for processing on the basis of customer accounts, the system automatically creates an FI
customer.
Customer-based views:
Bank details; Tax data; Control data; Account information; Account interest; Automatic payment
transactions; Payment data; Dunning data.

(C) SAP AG AC815 4-26
SAP AG 1999
Create / change / display Create / change / display
Create / change / display in
role
Create / change / display in
role in conjunction with loan
Loans Management
Basic Functions TR-TM
Partner Partner
Business Partners



In business partner management you can create, change and display general business partner data.
You can enter a loan partner in the system in three ways:
1 Create business partner by choosing Basic Functions -> Business Partner in the application menu:
In this case, you create the partner using a grouping, without assigning an application area. You
can then assign loan-specific roles and data to the partner later on.
2 Within the Loans Management component - Business Partner -> Create in Role:
In this case, you first specify the application area (such as mortgage loan, policy loan or general
loan), and then enter the partner role (for example, "A100" Main loan partner) in the screen that
follows. If role types have been defined for a role category, the role types are displayed. If not, the
role categories are displayed.
3 Within the Loans Management component - Create business partner in role when creating a loan:
In this case, you enter the partner role (role type or category) when you enter the loan. If an FI
customer account is required for loans in that particular status (for example, "contract"), the
system creates an FI customer automatically on the basis of the default values defined in
Customizing. If no FI customer is required for this loan status, the system only creates an FI
customer using the default values if you call up a customer view.

(C) SAP AG AC815 4-27
SAP AG 1999
-
Business Partner Settings
Specifications
Define Default Values ... for
Autom. Customer Creation
Define Default Values per
Product Type ...
Assign Role Category to
Application
PTyp Grp. Payee i.dc Text
30A Mortg.loan
Product type 30A
Company code 0001
Reconcil. account 150000
Payment methods 12AESU
-
Loans: Customizing for Business Partners (1)



You can define default values that are used for automatic customer creation when you create a
business partner within a loan:

1. Default values for a customer created on the basis of a loan with a certain product type.
Before you can post payments made to/received from a third party, you must activate
the indicator Payee i.dc (Alternative payee in document allowed?). This affects disbursements
to a person authorized to draw on the loan, or the direct debit of amounts due from an
alternative payer.
The authorization group affects access to the customer account in Financial Accounting.

2. Default values for a customer created on the basis of a loan with a certain product type in a certain
company code.

(C) SAP AG AC815 4-28
SAP AG 1999
Main loan partner
Borrower
Alternative payer/ee
Person authorized to draw
Business partner
Role categories:
. . .
Business Partners: Roles



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

(C) SAP AG AC815 4-29
SAP AG 1999
- -
+
Create Partner: Application Area Create Partner: Application Area
Application cat.
Role types/categories
A100 Main borrower
A101 Other borrower
A102 Main lender
...
0010 Mortgage loan
0011 Borrower's note loan
0012 Policy loan
0013 General loan
0015 Interested party
0016 Special arrangements
F4
Creating a Partner: Application Area



Before you create the partner data, you choose the application area for which you want to use the
partner.
The application area determines the roles that can be chosen in the next screen.
Example: 0010 -> Mortgage loan


(C) SAP AG AC815 4-30
SAP AG 1999
RoleC Name of role category
0100
...
Main loan partner
Application - Mortgage loan
-
-
Loans
Basic Settings
-
Business Partner Settings
Assign Role Category
to Application
Grouping
"Double-click"
DAR1
Loans: Customizing for Business Partners (2)



In the Loans section you define which role categories (with their corresponding role types) are
available for the various applications (mortgage loans, borrower's note loans, ...). This ensures that
the choice of roles is relevant for the application in question. The role "Issuer", for example, is only
relevant for borrower's note loans.
In the detail screen, you define which business partner grouping should apply for the role category.
The grouping contains information relating to the number range and the FI account group. It creates
the link to Financial Accounting.


(C) SAP AG AC815 4-31
SAP AG 1999
Loans: Business Partner Overview
Loan 40000000
Partner list
Name Name / Address BnkT
Smith, 1 Main Street
Customer
100078
Address
Default
Select partner (or "double-click" )
Treasury - Business Partner Management
Partner
Classification Appl. cat. Mortgage loan
Main borrower
90000001
Natural person



You can either create a business partner in advance (using the general business partner management
functions for Treasury or within the Loans menu), or define the business partner when you create a
loan.
When you create an application, offer or contract, you can call up all the data for the borrower by
choosing Partner overview.
From the partner overview, you can also branch directly to the general Treasury business partner
management functions and display or change partner data in the various screens.


(C) SAP AG AC815 4-32
SAP AG 1999
Basic data
Basic data
Conditions
Conditions
Collateral
Collateral
Objects
Objects Correspon-
dence
Correspon-
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
Create Contract - Basic Data



The system proposes the contract currency defined in the company code-dependent settings for the
product type in Customizing. If no default currency has been maintained, the system proposes the
currency of the company code.
If a business partner has several loans, these can be grouped as you require. If you group several
loans in a finance project, this grouping can be used for the incoming payment distribution level.
If a business partner has several loans, you need to arrange how incoming payments should be made:
individually for each loan, jointly for several loans (per finance project), or for all loans (at customer
level).
You can define the additional fields yourself and use them for drilldown reports.
The other references and user fields are displayed for information purposes. You set up the user
fields in Customizing.

(C) SAP AG AC815 4-33
SAP AG 1999
Loan type
Loan purpose
Maturity
Loan category
F4
Customizing Loans Master data
Customizing: Basic Data (1)



The screens for entering an application, contract offer, or contract are identical. You can use field
selection to define for each status which fields are displayed or hidden and which entries are required
or optional.
For many of the fields in the basic data screens, you can call up possible entries using the F4 key.
Most of the proposals reflect settings you can make yourself in the Implementation Guide (IMG),
such as the loan type or the purpose of the loan.
You define the default values in the IMG under Loans -> Master Data.

(C) SAP AG AC815 4-34
SAP AG 1999
Loans
+
+
_
Basic Settings
Transaction Management
Master Data
Basic Settings
_
_
Contract Acceptance
/Notice
_
_
_
_
_
_
Agent Data
_
Indicators
Branch offices
Regions
:
Branch offices
Regions
:
Balance sheet indicators
Special posting treatment
:
Balance sheet indicators
Special posting treatment
:
Loan type / loan class
Purpose of loan
Maturity
Loan type / loan class
Purpose of loan
Maturity
Offer acceptance types
Reasons for non-acceptance
:
Offer acceptance types
Reasons for non-acceptance
:
Customizing: Basic Data (2)



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

(C) SAP AG AC815 4-35
SAP AG 1999
Interest calculation capital
Time
Repayment:
debit
position
Repayment:
incoming
payment
Key:
Planned principle
Actual principle
Basic Data: Planned/Actual Principle



Indicator: Planned principle / actual principle: This indicator controls which repayment flows in the
cash flow reduce the interest calculation capital:
Planned principle: The reduction in the interest calculation capital is calculated on the basis of the
posted and planned debit positions as at the repayment settlement date.
Actual principle: The reduction in the interest calculation capital is calculated on the basis of the
posted incoming payments for the repayments in conjunction with the planned repayment debit
positions as at the repayment settlement date.
The two variants of the actual principle (1 and 2) differ in the way principle and interest payments
are calculated for annuities and in the way payments are considered for future calculation periods.
If a payment is delayed or reduced, and you use actual principle 1, the payment instalments for
annuities remain constant. If you use actual principle 2, the delay or reduction leads to a change in
the payment instalment (see F1 Help).


(C) SAP AG AC815 4-36
SAP AG 1999
Customizing:
Activity type Role category Clerk as business partner
Activity type Clerk/team in Customizing
2.
1. Field selection control for clerk fields in the basic data
Application: Loan contract no. 10000007
Activity type
P
D
...
Clerk
P
D
Basic Data: Clerks



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

(C) SAP AG AC815 4-37
SAP AG 1999
Contract capital
Reduction
Current contract capital
Commitment capital
Value-dated capital
Effective capital
Disbursement commitment
Remaining capital debit
position
Nominal remaining capital
Contract capital originally agreed
Total partial waivers
Contract capital ./. reduction
Capital of current fixed period
(see condition header)
Total disbursements with capital transfers
Value-dated capital ./. repayments
Current contract capital ./. value-dated capital
Value-dated capital ./. (all) repayments
Debit position for the remaining capital without
price gains and discount (relevant for borrower's
note loans with net posting)
Basic Data: Capital Amounts



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

(C) SAP AG AC815 4-38
SAP AG 1999
Loan basic data Loan basic data
Condition header
Cash flow Cash flow
Condition items
Planned records
------------------------------------------------------
Condition Structure



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

(C) SAP AG AC815 4-39
SAP AG 1999
Loan contract Loan contract Loan contract
Annuity repmnt
from 05/01/YY
4.0%
Condition items
Condition header
Interest
from 05/01/YY
6.0%
Interest
from 05/01/YY+3
5.5%
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
Condition Header / Condition Items



The combination of the condition header and the condition items offers a high degree of flexibility
when you set up the loan conditions.
The condition header contains date details (such as Fixed until) as well as information relevant for all
items (such as Disbursement rate, Effective interest rate or Effective interest method).
Each condition item contains information relating to that particular condition type (such as nominal
interest). You assign an effective period to each individual condition item. This allows you to
represent conditions that change within the fixed period (example: an interest rate that changes
annually for a fixed period lasting several years).

(C) SAP AG AC815 4-40
SAP AG 1999
Basic data
Basic data
Conditions
Conditions
Collateral
Collateral
Objects
Objects Correspon-
dence
Correspon-
dence
Condition header:
- Commitment capital
- Disbursement rate
- Repayment type (instalments, annuity, full repayment upon maturity)
- Start of term / end of term
- Fixed from / fixed to
- Effective interest method (PAngV, Braess ...)
- Interest calculation method
- Calculation buttons (end of term, instalment, interest, capital, effective interest, ...)
Contract - Condition Header



The condition header contains the basic condition data for the loan, including:
Term start / Term end: Term of the loan
Disbursement rate: Consideration of a premium or discount
Repayment type: The following repayment types are supported: Full repayment upon maturity,
annuity repayment (fixed payment instalment), instalment repayment (falling repayment
instalment), imputed annuity (partial disbursements and unscheduled repayments are not
considered in the annuity calculation).
Fixed from / fixed until: The period for which the first set of conditions applies ("fixed period" for
the condition). The fixed from / fixed until period can be shorter than or the same as the loan
term.
Select the appropriate effective interest method from the possible entries.
Select the appropriate interest calculation method from the possible entries. The method in the
condition header applies for all the condition items that have no specific calculation method entry
(see F1 Help with examples).
If you have made all the required entries except for one, you can let the system calculate the last
value. For example, if you have already entered the term, interest rate and repayment parameters,
the system will work out the repayment instalment.
You can calculate up to three effective interest values: Effective interest rate, internal effective
interest rate and an alternative effective interest rate for comparison. For each individual effective
rate you can specify a different yield method and define in Customizing which flow types are
relevant for the calculation.

(C) SAP AG AC815 4-41
SAP AG 1999
Periods Periods Periods
Condition item
Nominal interest rate
5%
% or amount % or amount % or amount
Example: Nominal interest
Example: Effective from
MM/DD/YYYY
Example: 5%
Condition type Condition type Condition type
Contract: Conditions
Eff. from MM/DD/YY



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

(C) SAP AG AC815 4-42
SAP AG 1999
Basic data
Basic data
Conditions
Conditions
Collateral
Collateral
Objects
Objects Correspon-
dence
Correspon-
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
- ...
Contract - Condition Items



You enter the individual conditions as condition items.
The calculation date relates to the calculations in financial mathematics. In the case of an interest
condition, for example, this would be the last interest date for the corresponding interest period.
The due date is the date on which payment is due.
The exact payment form is the combination of the payment form (at the start of the period, mid-
period, at the end of the period) and the frequency in months (monthly, quarterly, six-monthly ...).
It therefore tells you exactly up to when the amounts have been calculated and when they are due.
You can enter all the data for the condition items manually, or enter certain "initial values" and let
the system fill in the remaining fields. To use the latter option, you must specify the commitment
capital, the effective period for the condition, the percentage rate or amount, and the exact payment
form (or payment form and frequency).
The effect of a condition item depends on the Effective from date in conjunction with the calculation
category defined (via the flow type) in Customizing. Nominal interest, for example, is not due until
the first value date.You can also make the condition calculations dependent on certain events.
Example: Charge a processing fee for each partial disbursement (see the documentation for the exact
procedure).

(C) SAP AG AC815 4-43
SAP AG 1999
Condition Items - Fields
Condition items
Cond.type text
Nom.interest
Ann. repmnt
Eff. from Percent Amnt Curr. Lvl IS PF PE Frq Due onEDCalc.date MCCal
05/01/YY 6.0000 UNI 3 VN 3 06/30/YY 06/30/YY
3 05/01/YY 4.0000 UNI VN 3 06/30/YY 06/30/YY
... ... ... ... ... ... ... ... ... ... ...



Explanation of field names:

Lvl: Level number of condition items for recurring condition types

IS: Immediate settlement

PF: Payment form (at start of period, mid-period, at end of period)

Frq: Number of months in period

PE: Payment form - exact day (with adjustment days)

ED: End-of-month indicator for due date

MC: End-of-month indicator for calculation date

CR: Calendar rule. You can use the calendar rule to shift a public holiday, Saturday or Sunday
to a working day. This is not usually applied to the calculation date (the interest calculation
does not depend on whether the day is a working day), but is relevant for the due date
(payments can only be made on a working day). Example: Due date 01/01/YY (relevant
for calculating the capital amounts), shifted using the calendar rule to the next working day
01/03/YY, referred to as the payment date (relevant for processing in accounting).


(C) SAP AG AC815 4-44
SAP AG 1999
Condition type 1
PF PE Frq Due on Calc. date Eff. from Percent
04/01/YY 5 05/15/YY 06/30/YY
One-time payment: Interest 04/01/YY - 06/30/YY, due on 05/15/YY
Condition type 2
04/01/YY 5 3 05/15/YY 06/30/YY
Regular payment: Interest calculated quarterly to the end of the quarter,
due at the middle of each quarter
04/01/YY - 06/30/YY, due on 05/15/YY
07/01/YY - 09/30/YY, due on 08/15/YY
10/01/YY - 12/31/YY, due on 11/15/YY
......
or
Condition Structure: Frequency (1)




(C) SAP AG AC815 4-45
SAP AG 1999
Time
(month)
01 02 03 04 05 06 07 08 09 ...
Example: Eff. from: 03/15/YY Frequency: 03
Calculation date: 05/10/YY
Due on: 06/30/YY
Cash flow: 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
....
Condition Structure: Frequency (2)



Calculations for financial mathematics (FiMa) start on the Effective from date. The last date up to
which FiMa calculations for the (first) period are made is referred to as the calculation date.
The recurring periods for the FiMa calculations are determined by the calculation date in conjunction
with the frequency. The calculation starts on the Effective from date of the first period.
The due date tells you when the amounts calculated are due, and reflects the accounting viewpoint. It
is used in conjunction with the frequency to calculate the recurring due dates.

(C) SAP AG AC815 4-46
SAP AG 1999
Condition type 1
Condition type 1
Condition type 1
Condition type 2
Condition type 3
Eff. from Percent
04/01/YY 5
04/01/YY+1 6
10/01/YY+3 7
04/01/YY ...
04/01/YY ...
Interest:
04/01/YY - 03/30/YY+1: 5 % p.a.
04/01/YY+1 - 09/30/YY+3: 6 % p.a.
10/01/YY+3 - "Fixed until": 7 % p.a.
Condition Structure: Condition Types



You can enter the same condition type for different effective periods. Each condition entry applies
from the Effective from date up to the next Effective from date of the same condition type, or the end
of the fixed period.

(C) SAP AG AC815 4-47
SAP AG 1999
Int. rate
adjustment
Int. rate
adjustment
Repayment
settlement
Repayment
settlement
Charges
Charges
Variable
interest
Repayment
Repayment
Fixed
interest
Condition Types



The conditions are structured modularly. On the one hand, this means that you can define the
structure of a loan for any number of periods. On the other hand, because each condition component
is represented by its own condition type (such as interest settlement, repayment settlement, interest
rate adjustment), you can combine the various condition types flexibly to map individual loan
conditions.
For certain condition types you must enter a "related" condition type to specify the details. For fixed
interest conditions, one condition type is sufficient. For floating-rate conditions, you need two
condition types. The condition type "variable interest" includes details about the reference interest
rate and the calculation date. You use the condition type "interest rate adjustment" to define when the
interest rate should be fixed and from when the new rate applies.
The same applies for the condition type "repayment". This condition type includes details about the
repayment amount or percentage rate and the calculation date. You also need to define when the
interest calculation capital is reduced to reflect the repayments. For example, you might arrange
monthly repayment with half-yearly settlement: In this case, the customer makes repayments on a
monthly basis, but pays interest on the same capital amount for six months. After six months, the
repayments are "settled" - they are deducted from the interest calculation capital, which in turn
reduces future interest payments.
You must enter the details for the repayment settlement using a separate repayment settlement
condition type. The only exception is when you opt for immediate settlement (the interest calculation
capital is reduced immediately on the repayment date). In this case, it is sufficient to select the IS
field for immediate settlement, without entering details for repayment settlement in a separate
condition type.





(C) SAP AG AC815 4-48
SAP AG 1999
Condition items
CF
1. 1.
2. 2.
3. 3.
Zero condition Zero condition
Fixed condition Fixed condition
Statistical condition Statistical condition
Condition Form



You can use the Condition form (CF) field in the condition item to control the effect of a condition.

If you choose the entry "Zero condition", the system only allows you to enter an amount or
percentage rate of zero for that condition type. This is relevant when you have arranged to suspend
repayments (repayment amount = 0).

"Fixed condition" means that the condition item is not recalculated for an alternative effective
interest rate or term end. If a condition item is fixed, its values are not changed for the FiMa
calculations.
A statistical condition is an inactive condition item that does not generate any flow records. This
condition form is only used for information purposes.

(C) SAP AG AC815 4-49
SAP AG 1999
Condition Overview Condition Overview
Items
Nominal interest
"Double-click"
on relevant item
Detail screen Detail screen
Condition Items - Detail Screen



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


(C) SAP AG AC815 4-50
SAP AG 1999
Condition Items - Detail Screen
CoCd
Loan
Cond.type 201
Mortgage loan Contract
0001
40000000
A_Nominal interest
30A
Ref.int.rate
Posting control 1 Automatic debit position
Eff. from
05/01/YY
Formula
Int. calc. method
Berechnungstag
Flligkeitstag
Zahlungstag
No shift
Incl.
Calendar 01
Calculation date
Regular 3 months
1st date
Data for percentage calculation
Due date
Regular 3 months
1st date
Incl.
No shift
Amounts
Dates
Payment data / Other



If the loan has a variable or formula-based interest rate, you enter the reference interest rate or
formula in the detail screen.
You can also map "composite" interest rates, such as "EURIBOR + 5%" or "EURIBOR - 0.5%".
You can specify individually which loan partner will pay the amounts for each condition item. For
example, if a third party pays the interest, you assign this person to the loan as an alternative payer.
You can then enter this partner as the payer in the condition detail screen.
(Prerequisite: In the business partner master record of the main borrower, you must set the Payee in
document indicator to active.)
Posting control: For each condition item, you can define whether the planned records for the
conditions can only be posted automatically (Post Planned Records) or only manually (Post
Individual Records).
In the detail screen, you also enter the calendar to be checked by the calendar rule.

(C) SAP AG AC815 4-51
SAP AG 1999
Interest
Repayment
05/01/YY
05/01/YY
6%
4%
3
3
Cash flow - Planned records
. . . . . . . . .
Calculate
yield
Interest /
repayment
schedule
Flows Flows
Planned Records



On the basis of the conditions, the system generates flows. Initially, these flows are created in the
form of planned records.
The planned records are used to generate the cash flow for calculating the yield. A key element of
the cash flow is the interest and repayment schedule.
The cash flow, the interest scale for the effective interest calculation, and the interest and repayment
schedule are calculated on the basis of the fixed period for the conditions. If no Fixed until date has
been entered for a condition, the system generates the cash flow up to the specified Term end (but
only for a maximum of 20 years).


(C) SAP AG AC815 4-52
SAP AG 1999
Calculate cash flow
Calculate cash 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
Settlement amnt
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
Name
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
FType
0001
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120
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
Basic data
Basic data
Conditions
Conditions
Collateral
Collateral
Objects
Objects Correspon-
dence
Correspon-
dence
Loans - Cash Flow



On the basis of the conditions belonging to a financial transaction and the specified calculation
period, the function modules for financial mathematics for the relevant application (such as stock
purchase, swap, loan contract) calculate a series of payment flows for the transaction. This series of
flows is referred to as the cash flow.
The cash flow for financial transactions is used as the basis for all trading, transaction and position
management processes, as well as for the evaluation activities within Treasury.
Processes based on the cash flow include:
- Effective interest calculation
- Posting
- Accrual and deferral of expenses and revenues
The cash flow display is linked to the ABAP List Viewer.
Flow types explain the different changes to the cash flows. Together, all the transaction flows form
the basis for generating the cash flow and for subsequent activities, such as posting. The cash flow
contains all the flow records in chronological order and is used to update the transaction data in
Financial Accounting, Cash Management, and Market Risk Management.
Typical flow types are fixed or floating interest, increases in nominal amounts, or commission.


(C) SAP AG AC815 4-53
SAP AG 1999
IDES Corp.
AIBD/ISMA Brae Moosm. PAngV
Scaling period 05/01/YY to 04/30/YY+ 5
Contract No.: 10000000
Effective interest: 6.71156
Page 1
% PANGV
ValueDte
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
Activity
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
3,000.00-
150,000.00
1,500.00-
1,000.00-
2,235.00-
1,515.00-
2,212.28-
1,537.72-
100.00-
2,189.21-
1,560.79-
9,471.08
2,165.80-
1,584.20-
Balance
3,000.00-
147,000.00
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
59
90
91
90
30
59
90
Interest
1,616.93
2,424.55
2,387.87
2,297.03
744.70
1,568.76
2,330.10
Effective Calculation of Interest



The system draws on both the planned and actual records in order to determine the effective interest
rate. The fundamental flow information is derived from the condition items.
By determining the effective interest rate using the cash flow, the disadvantages of using a
conventional solution based on mathematical formulas can be avoided. Here you are able to include
various price components and/or flows (e.g. insurance premiums) in the effective interest rate
calculation. You can then switch between methods and compare the different results.

(C) SAP AG AC815 4-54
SAP AG 1999
PAYMENT SCHEDULE Loan no. 10000000
Loan partner 00
05/01/YY
Mortgage loan
UNI 150,000.00
Universal Currency
Loan type:
Commitment cap.:
Display currency:
Conditions
Nom. interest
Ann. repaymnt
Payment date
05/01/YY
06/30/YY
09/30/YY
12/31/YY
03/31/YY+1
Eff. from
05/01/YY
05/01/YY
Payment
2,500.00
3,750.00
3,850.00
3,750.00
Percent
6.00000 %
4.00000 %
Interest
1,500.00
2,235.00
2,212.28
2,189.21
Amount Frequency
Quarterly
Quarterly
Repayment
1,000.00
1,515.00
1,537.72
1,584.20
Calculation from:
Calculation to:
Start of term:
End of term:
End of fixed period:
05/01/YY
04/30/YY+5
05/01/YY
04/30/YY+15
04/30/YY+5
First pmnt
06/30/YY
06/30/YY
Other
Int. calc. meth.
360/360
360/360 imm. settlem.
150,000.00
149,000.00
147,485.00
147,404.48
146,400.49
Rem. bal.
100.00
Payment Schedule



The system generates a payment schedule on the basis of the planned records in the cash flow. The
payment schedule contains general loan data as well as the individual condition items. It lists all the
payments for the fixed period, divided into interest payments and repayments, with the
corresponding outstanding balance.

(C) SAP AG AC815 4-55
SAP AG 1999
Business partner master record: Bank details
Choose bank type/pmnt meth. for condition Choose bank type/pmnt meth. for condition Choose bank type/pmnt meth. for condition
Condition
Nominal interest 05/01/YY
Condition Condition
Nominal interest Nominal interest 05/01/YY 05/01/YY
Choose bank type/pmnt meth.
BnkT PM
Entries for partner BR1 E
Entries for condition BR2 U
Choose bank type/pmnt meth. Choose bank type/pmnt meth.
BnkT PM BnkT PM
Entries for partner Entries for partner BR1 BR1 E E
Entries for condition Entries for condition BR2 BR2 U U
Dir.debit Bank type
10020030
BR1
20030040 BR2
87654321
12345678
Contract - Partner overview
Bank type
BR1 90000001 100000000
PM
E
Partner Customer
Partner
Partner bank type
Save
BR2
Payer(ee) / Payment data
Contract - Condition details
Conditions: Payment Data



Each set of bank details defined for a business partner is represented by a (partner) bank type key in
the master record. The bank type you select in the loan overview and the specified payment method
are default values used to make the payments resulting from the conditions.
You can, however, make alternative payment arrangements for individual conditions by entering
payment parameters in the condition detail screen that differ from those entered in the partner
overview.
When you save the contract a dialog box appears prompting you to check these entries. Here you
decide whether the bank details defined in the partner overview or the alternative bank details in the
condition should to be used for paying the condition.

(C) SAP AG AC815 4-56
SAP AG 1999
APPLICATION LEVEL
Product cat. Product cat. Flow category Flow category Calculation cat. Calculation cat.
Condition type Condition type
SYSTEM LEVEL
Status cat. Status cat.
Product type Product type
Condition group Condition group
Status definitions/ Status definitions/
status transfers status transfers
Flow type Flow type
Customizing Structure: Loans



Flow types explain the different changes to the cash flows. Together, all the transaction flows form
the basis for generating the cash flow and for subsequent activities, such as posting. The cash flow
contains all the flow records in chronological order and is used as a basis for updating the transaction
data in Financial Accounting, Cash Management, and Market Risk Management.
Typical flow types are fixed or floating interest, increases in nominal amounts, or commission.

Flows are generated on the basis of conditions (such as interest flows), manual entries (such as
charges), accrual/deferral runs (such as interest rate accruals), or valuation runs (such as write-offs).


(C) SAP AG AC815 4-57
SAP AG 1999
Controls accounting
processing
Controls processing
in financial mathematics
Example:
Flow type
Flow category
Inflow
Calculation category
Inflow
A AA
Loan disbursement 0001
Customizing: Define Flow Types (1)



The payment flows for the cash flow and for posting are controlled by two indicators that must be
assigned to each flow type. The calculation category controls how the flow is processed by the
financial mathematics modules that generate the cash flow. The flow category controls how the flow
is posted.
Each flow type is assigned to exactly one flow category. However, several flow types can be
assigned to the same flow category. For example, the flow types for fixed interest and floating
interest are assigned to the flow category "interest".
Examples of flow categories include accounting flows, such as inflow (for example, a security
purchase), outflow (for example, repayment), expense or revenue. Flows relevant for generating the
cash flow include security purchase/sale, interest, repayment, or charges.



(C) SAP AG AC815 4-58
SAP AG 1999
Customizing: Define Flow Types (2)
Flow type
Flow category
Calculation cat.
Inflow
Inflow
Assets/Liab. Loans given
Posting control
Incoming payment
Relevant to CM
0001 A_Loan disbursement
A
AA
0
Payment request
Individual payment
Payment details
Direction
Grouping
Posting
.



A flow type can either be used for loan assets (loans given) or loan liabilities (loans taken).
If you want the amounts for a flow type to be transferred to Cash Management, you must set the
Relevant to Cash Management indicator.
You can only use the payment details for loans that are not posted to customer accounts. If you want
payment details to apply for a flow, you must specify the direction when you make the settings for
the flow type. If you enter a direction, the system takes the values in the related fields into account:
Payment request indicator (PR): Active = PR allowed, inactive = PR not allowed
Individual payment: If the Payment request indicator is set to active, and you activate the
Individual payment indicator, the system does not allow payment netting.


(C) SAP AG AC815 4-59
SAP AG 1999
Payment date
05/01/YY
05/01/YY
. . .
Settlem. amnt Name
Loan disbursement
Discount debit pos.
P FType
P 0001
P 0165
Cash flow
3,000.00
150,000.00
Cash flow Cash flow
Assign Flow Types to Flow Category
CGr
1
FTyp1
0165
FTyp2
0170
FCat
TA
Name
Disc.debit pos.
Name
Prem.credit pos.
Customizing Customizing



Flows are generated on the basis of conditions (such as interest flows), manual entries (such as
charges), accrual/deferral runs (such as interest rate accruals), or valuation runs (such as write-offs).
The system calculates condition-based flows directly and inserts them in the cash flow.
In order to include the flows that are not generated by conditions in the cash flow, you must assign
the corresponding flow types to the flow category. You create the link to the product type indirectly
via the condition group.




(C) SAP AG AC815 4-60
SAP AG 1999
APPLICATION LEVEL
Product cat. Product cat. Flow category Flow category Calculation cat. Calculation cat.
Condition type Condition type
SYSTEM LEVEL
Status cat. Status cat.
Product type Product type
Condition group Condition group
Status definitions/ Status definitions/
status transfers status transfers
Flow type Flow type
Customizing Structure: Loans



In the SAP Treasury system, financial transactions are mapped using conditions and flows.
Conditions are components of the transaction contract. You can define your own condition types, for
example different forms of interest, dividend and repayment. You assign each condition type to a
product type (via the condition group). This ensures that every product type has the appropriate
structure characteristics. Condition types therefore control which structure characteristics are
displayed when you create transactions for a specific product type.
To simplify the procedure, related condition types are grouped in condition groups, and the condition
groups are assigned to the product types.
On the basis of the conditions, the system automatically generates flows that appear in the cash flow.
You therefore need to assign flow types for generating the cash flow to the condition types.

Example:
In the case of the product type "30A Mortgage loan", the system generates the interest amount on the
interest due date on the basis of condition "201 Nominal interest".
The flow type "0110 Nominal interest" is assigned to the condition "201 Nominal interest".


(C) SAP AG AC815 4-61
SAP AG 1999
Define condition types
Define condition groups
Assign condition types to condition groups
Assign flow type to condition group per
application function
1. 1.
2. 2.
3. 3.
4. 4.
Customizing: Conditions




(C) SAP AG AC815 4-62
SAP AG 1999
CTyp Name RefC FTyp1 FTyp2 FCat FiMa Payt
Field selection
200 A_Nom.interest var.
201 A_Nom. interest fixed
209 A_Int.rate adjustment
212 A_Processing charge
261 A_Annuity repayment
262 A_Instalm. repayment
...
0110
0110
200
3145
0125
0120
TZ TZ
TZ
ZF
TB TB
TTAN
TTRA
TZ
ZA
TTAN
TTRA
Customizing: Condition Types




The main task of conditions is to generate flows automatically. You therefore need to assign flow
types for generating the cash flow to the condition types.
Note that some condition types do not generate flows (for example, interest rate adjustment or
repayment settlement).
For some condition types, you must specify a reference condition type for processing in the cash
flow. When you define these condition types, you must enter the corresponding reference condition
type in the RefC field (for example, interest rate adjustment).
If the Payment activity (Payt) indicator is set to active, flows for this condition can be posted to a
customer account or to a G/L account. In this case, the setting for the product type (FI posting 3 or 4)
is decisive. If the Payment activity indicator is not set, flows for this condition are never posted to a
customer account.
You can influence what appears on the entry screen for the various condition types by using field
selection control (fields: suppress, required, optional, display).


(C) SAP AG AC815 4-63
SAP AG 1999
CGr Name Ass/Lia
1 Mortgage loan given
2 Borrower's note loan
3 Policy loan given
4 General loan given
504 Loan taken
.
.
.
0
0
0
0
1
Customizing: Condition Groups



In this step you define the condition groups you require. You assign the appropriate condition types
to these condition groups, and then assign the condition groups to your product types. To assist you,
the condition groups for loans given / loans taken (assets/liabilities) are named accordingly.


(C) SAP AG AC815 4-64
SAP AG 1999
CGr Name CType Name
1 Mortgage loan 200 A_Nom.interest var.
1 Mortgage loan 209 A_Int.rate adjustment
1 Mortgage loan 212 A_Process. charge
1 Mortgage loan 261 A_Annuity repayment
1 Mortgage loan 262 A_Instalm. repayment
1 Mortgage loan 271 A_Ann. rep. settlem.
1 Mortgage loan 272 A_Inst. rep. settlem.
.
.
.
.
.
.
.
.
.
.
.
.
Double Double- -click Details click Details
Customizing: Condition Assignment



You assign appropriate condition types to each condition group.
You can make detail settings for each condition type in relation to a particular condition group.



(C) SAP AG AC815 4-65
SAP AG 1999
Sequence no. 1
Hierarchy Hide
Int.calc.method
Pmnt method
Incoming pmnt
Posting control
Calendar rule
Inclusive ID
Calendar rule
Due date meth.
Pmnt form
Calendar
Condition form
Month-end calc. Month-end
1
1
01
No shift No shift
Regularly with fixed dates
Field control
Default values
Basic data Payment data / Posting
Calculation date Due date
Other data
200 A_Nominal interest var.
1 Condition group
Condition type
Customizing: Assign Conditions -> Details



In the detail screen you define the sequence of the condition types within a group.
If you set the Hide indicator, this condition type does not appear on the screen automatically when a
loan is entered. If necessary, however, the user can add this condition to the list of condition items
manually.
Example:
You usually need to enter an interest rate condition for a loan. By contrast, a processing charge is
optional. This condition type should only be included if you intend to charge processing fees
(suppress condition type "processing charge").
You can define default values for each condition type (per condition group). These default values
appear as proposals when you enter the conditions in the contract.
Example:
You want to shift dates to working days. You can make the relevant entries in the application by
entering the calendar rule in the condition overview and the corresponding calendar in the condition
detail screen. To simplify data entry, you can define default values for the calendar rule and calendar
in Customizing.

(C) SAP AG AC815 4-66
SAP AG 1999
Application:
- Company code
- Product type
Product category Condition group
Condition types
Flow types
Flow category Calculation category
Create loan (Application, offer, contract)
Customizing:
Application: Cash flow
Other flow types
Conditions: Summary



When you create a loan, you must specify the company code, product type, business partner, and (if
you have opted for external number assignment) the loan number.
The system applies the Customizing settings for the product type chosen by the user.

(C) SAP AG AC815 4-67
SAP AG 1999
Exact Payment Form
PE
JM
JN
JV
MM
:
Name
Mid-year
Yearly at end of period
Yearly at start of period
Mid-month - 1 day
:
Nominal interest
Curr.
Calc. date
Effective from
Lvl
05/10/YY
Percent
PF PE Frq
10.000000
Amount
Due date ED CR
06/09/YY 06/09/YY
UB
via F4
3 MN 12
UNI
Condition item
Company code -dependent data
for product type - details
Payment form start
Payment form Start of term
Customizing: Payment Form



PE - The Exact Payment form (with adjustment days) is a combination of payment method (at start
of period, mid-period, at end of period) and frequency in months. In order to simplify data entry you
can set these short names in Customizing together with the appropriate abbreviations, for example J-
yearly combined with V - start of period, M - mid-period, and N - end of period.
The company code-dependent data for the product type determines whether the payment frequency is
based on calendar units or on the "Effective from date" in the condition item.

Example: Nominal interest, effective from 05/10/YYYY PE: MN- Calculation date/Due date based
on calendar: 05/31/YYYY- Calculation date /Due date based on condition date: 06/09/YYYY


(C) SAP AG AC815 4-68
SAP AG 1999
Table
Effective from
MORTG_01
05/01/YY
YY05 001
Rnk.
001
Fxd int.
2 J
DRate %
98.00000
Nom. int.
Repayment
6.00000
4.00000
Ref. int.
Rep.sttl.
PF
PF
PE
PE
Frq
3
3
Frq
IS
IS
+/-
PF
EIM
1
PE
ICM
Frq IS
X
Variants
Contract: Conditions Contract: Conditions
Items
Nominal interest
Annuity repayment
6.00000
4.00000
3
3
X
X
Condition table
1
05/31/YY Effective to
New Business Table



You can define conditions in advance in a new business table. This table can then be used to fill the
condition items for a contract automatically. Condition tables prevent data entry errors and simplify
subsequent processing of the loan.
When you create the loan, choose Condition table and select the table you require with the relevant
condition variant. You can only use a table if the Fixed from date of the loan falls within the
effective period of the table.


(C) SAP AG AC815 4-69
SAP AG 1999
Sample loan
Company code
Loan number
Product type
Reference data
Sample loan no.
Partner
0001
/ intern /
30A
Create Loan: Initial Screen



There are three alternative ways of creating a loan (application, offer, contract):
1. Fill all the master data fields manually.
2. Transfer the data from a sample loan. You create a sample loan using the Sample loan
function. The data is entered in the same way as for a "standard" loan, but without a
business partner. If you want to use a sample loan to create a new loan, you enter the
corresponding data in the Reference data section.
3. Copy data from a "standard" contract created previously. Choose Copy from ... .
A dialog box appears prompting you to enter the contract from which you want to
copy the data.

(C) SAP AG AC815 4-70
SAP AG 1999
Basic data
Basic data
Conditions
Conditions
Collateral
Collateral
Objects
Objects Correspon-
dence
Correspon-
dence
Interest certificate
Key date
Processing type
Generate int.cert. in annual batch
ManDunnLvl
Dunning per
No dunning
Loan contract
Dunning history
D.area D.level Last dunn.
Key date
Generation frequency
Generate upon request
Statement number 0
External account statement
Dunning
Contract - Correspondence



On the Correspondence tab, you can enter loan-specific data for the dunning procedure.
The dunning history tells you about past dunning activities and the current dunning status.
In this screen you can also enter instructions for creating and sending external account statements
and interest certificates, such as the frequency with which they should be generated, or the
processing type.


(C) SAP AG AC815 4-71
SAP AG 1999
Contract: Correspondence Contract: Correspondence
Edit
Loan number.:
Main borrower:
10000000
Smith
DC 20433 Washington
LOAN CONTRACT
The lender ... shall grant John Smith a mortgage loan of USD ... under the
following conditions:
Generate correspondence
Correspondence activity
Lang.
EN
EN
CA
2920
1060
Name
Ext. account statement
Mortgage loan contract
Contract - Generate Correspondence



You can trigger individual correspondence from the loan (application, offer, contract). The
documents are defined in Customizing and grouped into correspondence activities.
Mass processing for correspondence is supported by the process management functions.

(C) SAP AG AC815 4-72
SAP AG 1999
Define Correspondence
Activities
DGrp
DARV
Letter name
CONTRACT.MORTGE
Letter description
Mortgage contract
CA
1010
:
1060
Name of correspondence activity
Mortgages: Interested party processing
Mortgages: Contract processing
Code
Mortg.
Corr. act. Corr. act. name
CA
1060
SNo
5
ROri
0100
RType
0100
Letter name
CONTRACT.
MORTGE
Letter
descr.
Mortgage
contract
+
Loans
_
+
+
Correspondence
Functions
_
Assign Transactions to
Correspondence Activities
Assign Documents to
Correspondence Activities
and Roles
Define Documents
_
1060 Mortgages: Contract processing
Define Correspondence
Classes
Assign Function/Program
to Correspondence
Activities
Assets/Liab. 0
Details
Customizing: Correspondence - General



You define your standard letters for the loans area in the IMG step Documents, and assign each letter
to a document group (such as "DARV").
You can define as many letters as you want in each document group using SAPscript.
You define business activities for which you want to generate correspondence. Examples of
correspondence activities: offer processing, contract processing.
You then link these correspondence activities to the corresponding transactions or programs.
Example: Assign correspondence activity "contract processing" to the code for Change Mortgage
Loan Contract. For transactions, use record type 1 (transaction code - correspondence activity). For
functions/programs, use record type 3 (function code/program - correspondence activity).
At the end, you specify which documents should be generated for which correspondence activities.
This is also where you define the recipient of the correspondence: The original is sent to the contract
business partner that has the role type defined in the field ROri. A copy is sent to the business partner
with the role type defined in the field RType. If the role types are identical, the system only generates
one letter.
You must specify whether the entry applies for loans given or loans taken (asset/liability).
In Customizing, you can define correspondence classes. These are entered in the detail screen for a
document. If the user selects a correspondence class in the business partner overview for a loan,
documents in this class are excluded for this partner for this particular loan.


(C) SAP AG AC815 4-73
SAP AG 1999
Functions
_
_
_
Correspondence
External Flow Types
Define External Flow Types
Assign External Flow Type
to Report Category
Assign External Flow Type
to (Internal) Flow Type
EFTyp
100
101
Name
Principle change
Disbursement
Dependent on company code and language
EFTyp
100
300
Name
Principle change
Interest
Dependent on company code and report category
RCol
1
Dis
1
FTyp
0001
2001
Name
Loan disbursem.
Interest IP
Dependent on company code and report category
EFTyp
100
300
Name
Principle change
Interest
Customizing: Correspondence - External Flow Types



In order to generate a payment schedule, account statement or interest certificate, you must define
and assign external flow types (in addition to the other word processing settings).
You use external flow types to explain the flows that are visible to the recipient of the document. In
Customizing you define which internal flow types are behind an external flow type. You can group
several internal flow types into one external flow type.
The advantage of external flow types is that several similar internal flow types can be displayed as
one item with a description that is meaningful to the recipient (the external flow type).


(C) SAP AG AC815 4-74
SAP AG 1999
Enter a loan given with different condition
structure variants (such as fixed interest, variable
interest, suspended repayment)
Make the system settings for representing the
product types you require with the corresponding
conditions
You are now able to:
Loan Contract: Unit Summary




(C) SAP AG AC815 4-75
Loan Contract Exercises



Unit: Loan Contract



At the conclusion of these exercises, you will be able to:
Create an assigned loan with different sets of conditions in the system
Configure the system such that you can reflect the required product
types with the corresponding condition types, and generate
correspondence.



1 You want to create a new product type for a new loan to be entered.
1-1 The product type is a specification of the product categories assigned by
the system. You cannot change the product categories.
Create a product type with the name 9XX (XX = Group ID) with the following
characteristics:
Product category: 300
Asset/liability: 0
Condition group: 1
Limit group: 301
Interest per disbursement: -
Collateral active: -
Objects active: -

(C) SAP AG AC815 4-76

1-2 Make the following company code-dependent settings for your product
type:
Number range: 01 (internal)
Sample recNoRg: MU
CM period: 4
Dunning block: A
FI posting: 3 (actual records in Treasury)
Discount limit: 0.2000
Ref. management: 2
Dunning active: -
Dec. active: -
Defaults:
Currency: UNI
Int. Vdate incl.: -
Withhold. disb.: -

1-3 To simplify the procedure, only certain fields should be ready for input
dependent on the company code and product type. Set the field selection
(required entry or optional fields) for the following areas:
Basic data classification basis
Basic data grouping basis
Basic data inter. calcul. basis
Basic data evaluation information
Conditions basic data
Conditions contract eff. inter.

(C) SAP AG AC815 4-77

1-4 Create the required status "60" (contract).
Enter the following criteria:
Internal level 35
Document group 3
Generate cash flow in contract
Alternative field selection
No alternative field selection (do not select)

1-5 Only permit "contract" status 60 for your product type 9XX. Permit
changes to the status.

2 As a result of a change to the loan contract you created, you want to set up
special charges in the amount of 400 UNI, due at the end of each year.
2-1 Define the flow type "SXX" (special charges XX). To do so copy flow
type 3145 (processing charge).

2-2 Create a condition type 9XX , assigning flow type SXX.

2-3 Set the field selection for the conditions such that all fields are
optional fields.

2-4 Assign this condition type to condition group 1 (mortgage loan
assignment).

2-5 Enter this condition in the contract with a "Effective from" date of the
start of the next year.



(C) SAP AG AC815 4-78
Loan Contract Solutions



Unit: Loan Contract



At the conclusion of these exercises, you will be able to:
Create an assigned loan with different sets of conditions in the system
Configure the system such that you can reflect the required product
types with the corresponding condition types, and generate
correspondence.

1 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

(C) SAP AG AC815 4-79



Use the settings specified in the exercise; these form the basis of
later exercises.

1-3 Select the product type you created and then select Field selection to go to the
field selection control. Select the field groups specified and set all fields to
optional or required entry status. Make a note of the fields required for
processing the contract further.



Set the fields as optional or required entry fields. (Maturity in "Basic
data grouping basis", should be a required entry field. In the "Basic
data: Interest calculation", set the control for the planned principle to
Display).


1-4 Define the statuses for the product types under:
Treasury
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.


1-5 Set up the permitted status transfers under
Treasury
Treasury Management
Loans
Transaction Management
Product Types
Company Code-Dependent Settings for Product Type

(C) SAP AG AC815 4-80

Define Status Transfers per Product Type

Prev.
status
Status name New
status
Status name
0 60 Contract
60 Contract 60 Contract

2 Create the condition "Special charges XX".
2-1 Copy flow type 3145 via
Treasury
Treasury Management
Loans
Transaction Management
Flow Types
Define Flow Types



Select flow type 3145 and then use the copy function.


2-2 Define condition type 9XX in the IMG under
Treasury
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

(C) SAP AG AC815 4-81
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.


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.



(C) SAP AG AC815 5-1
SAP AG 1999
Carrying out disbursement
Integration: Loans Management --> Financial Accounting
Integration: Loans Management --> Cash Management
Customizing:
- Accounting and product type/status/flow
types/conditions
- Account assignment reference
- Account determination
- Integration with Cash Management
Contents
Disbursement




(C) SAP AG AC815 5-2
SAP AG 1999
Disburse a loan that has been entered, that is,
post the loan
Configure the system in such a way that posting
transactions can be carried out correctly
At the conclusion of this unit, you will be able to:
Disbursement: Unit Objectives




(C) SAP AG AC815 5-3
SAP AG 1999
Loans Management
within SAP Treasury
Payments due
Closing operations
Rollover
Special cases
Complete process
including master data
Contract currency
changeover
Disbursement
Course overview
Process flow for
loans given
Loan contract
Course Overview Diagram




(C) SAP AG AC815 5-4
SAP AG 1999
You want to disburse your loan.
Disbursement: Business Scenario




(C) SAP AG AC815 5-5
SAP AG 1999
- Create loan
- Business partner
- Conditions
- Correspondence
- Disburse/post loan
- Integration with CM
- Integration with FI
Interested Interested Appl Appl. Offer Contract . Offer Contract Disburse- Other Rollover Other Rollover
party party ment activities activities
Transaction management Portfolio/Accounting
Mortgage Loans: Processing Seq./Contract




(C) SAP AG AC815 5-6
SAP AG 1999
Disburse Contract: Settlement
Create Disbursement: Basic Data Create Disbursement: Basic Data
Disbursement basic data
CoCd
Loan
Flow type
Text
Payment date
IntValDate
Withhold up to
Posting control
Customer
Payment method
Partner bank type
House bank
A_Loan disbursement
Capital data
Curr. contract cap.
Nominal capital
Disbursement in %
Gross payment amnt
Net payment amnt
Disbursement rate
Mortgage loan 0001
10000000
30A
0001
05/01/YY
05/01/YY
05/01/YY
150,000.00 UNI
0.00
100.0000
150,000.00 UNI
98.00000
146,500.00
Automatic debit position
Incl.
KB1
Brown / 1 Main Street / Washington DC 20433
100078
2
Bank transfer with individual payment



If you want a specific text to appear on the payment medium, enter an asterisk (*) at the start of the
text field. Example: "* Partial disbursement as agreed per telephone"
If you select the Withhold up to field, all of the condition-based planned records in the contract that
are due by the date specified are selected, and - as long as the withholding indicator has been set for
these records - they are withheld from the disbursement amount.
The records selected are listed on a second screen, the Incidental Costs screen.
The following applies for each loan contract:
Only one disbursement can be entered for each payment date.
You cannot create a disbursement with a payment date earlier than the last existing disbursement.
If you have created several partial disbursements, you can only change the last disbursement
entered.
You can enter an unlimited number of partial disbursements with "Plan" status.
You can only have one disbursement with the status "To be released"; additional disbursements
can only be carried out once an existing disbursement has been released.

(C) SAP AG AC815 5-7
SAP AG 1999
Disburse Contract: Incidental Costs/Withholding
Create Disbursement: Incidental Costs Create Disbursement: Incidental Costs
Capital amounts
Available capital Value-dated capital
Flows
Flow Name
Company code
Loans
0001 30A
10000000
Due on
Withhold
Settlement
amount
Pmnt
meth.
150,000.00 150,000.00
...
...
3145 Proc. charge. deb.pos. 05/01/YY 500.00 X
0165 Discount debit position 05/01/YY 3,000.00 X



In Customizing, you can control which flow types can be processed for the disbursement.
You can withhold the incidental costs that you enter here. This means that they are deducted from
the disbursement amount (flag: W/H). Alternatively, you can post the incidental costs. If you want
to trigger the payment of these items yourself later on, you must enter a payment method for
processing with the payment program.
Examples of incidental costs are:
- Premiums/discounts - applied automatically by the system
- Flows created explicitly here (for example, disbursement charges)
- Condition-based planned records - selected via Withhold up to
If condition-based planned records are selected, these are only considered if the withhold indicator
has been set.
Other additional incidental costs entered here are considered as either withheld or as a pure debit
position posting (either with or without specifying a payment method).

You can set the withholding indicator as a default in the company-code dependent data for the
product type.

(C) SAP AG AC815 5-8
SAP AG 1999
Create Disbursement: Drawings Create Disbursement: Drawings Create Disbursement: Drawings
Capital data and payee data
Company code
Loan
Borrower
Drawing amount
Amount in LC
Payment method
Name
Street
P.O.Box
City
Country
Bank country
Bank account
:
Net payt amnt
Drawn amount
Remaining amt
P.O.Box code
Postal code
UNI
UNI
2
William Green
7 Main Street
Springfield
US
US
69227
87654679
Mortgage loans
Contract
Brown /1 Main Street / Washington DC 20433
146,500.00
96,500.00
10020030 Bank number
:
50,000.00
50,000.00
50,000.00
0001 30A
10000000 60
Disburse Contract: Drawings



If the disbursement amount is to be paid to someone other than the main borrower (either partially or
completely), enter this as drawings.
The data of the person authorized to draw can be dealt with in one of two ways:

1. Enter the person authorized to draw as a business partner in the role "Person authorized to draw";
Assign this business partner in the loan; enter the drawings using the business partner data.

2. Enter the data of the person authorized to draw on the disbursement screen.

Use variant 1 if you know that you will be making several partial disbursements to this partner. If
however, you are making a one-time disbursement to a person authorized to draw, variant 2 is more
appropriate.

The "drawings" function is only available for disbursements that are to be posted to customer
accounts.
Drawings are always posted using the customer account of the main borrower. The data of the person
authorized to draw is defined in the document as alternative payee, and is then used for payment
processing in the payment run.
(Prerequisite: You must activate the Alternative payee in document indicator in the master record of
the main borrower).

(C) SAP AG AC815 5-9
SAP AG 1999
Partner overview Partner overview
Partner overview Partner overview
or
- Main borrower
- Person authorized to draw
- Main borrower
Disbursement to Disbursement to
- Main borrower
- Person authorized to draw
Data: - Manual
or
- Default from
partner overview
Disbursement to Disbursement to
- Main borrower
- Person authorized to draw
Data: - Manual
Customizing: If plausibility check for partner:
Only possible: Data: - Default from
partner overview
Data of Person Authorized to Draw



In Customizing, you can specify that drawings can only be entered for persons that are assigned to
the loan as business partners in the appropriate role (person authorized to draw).

(C) SAP AG AC815 5-10
SAP AG 1999
Disbursement
Save Post (manually)
P
Post manually Post automatically
Automatic
debit position
or
Manual debit position
Automatic
debit position
I I
I
Prerequisite:
Field: Posting control:
Prerequisite:
Field: Posting control:
Saving/Posting Disbursements



You can either post the disbursement immediately (I = actual record), or save it first (P = planned
record), and post it later.
The planned record for a disbursement you have saved can be posted in two ways: By calling up the
disbursement data for the loan, you can post the individual record manually. Alternatively, you can
have the system post the flow automatically using the mass processing program Post planned
records.
The entry that you make in the Posting control field when you enter a disbursement determines the
type of posting permitted - manual posting only, or both manual and automatic posting.

(C) SAP AG AC815 5-11
SAP AG 1999
Liquidity forecast/cash position
05/01/YYYY 146,500.00
Loan disbursement
TR-CM Interface FI Interface
Disbursement posted Disbursement saved
Disbursement posted
Financial Accounting
Integration with R/3 FI/TR Cash Management



As soon as you save a disbursement, the system generates planned records and writes them to the
database. These planned records form the basis for integration with TR Cash Management.
If you post the disbursement immediately, integration with Financial Accounting is also possible.
You can then also view the corresponding FI document.


(C) SAP AG AC815 5-12
SAP AG 1999
TR - LO
Application, offer
Contract
Planned contract disbursement Posting via customer accounts:
(Planned record) Subledgers: Level 1, group E2
Posting without customer accts:
Banks: Level 1*, account 113100
TR TR - - CM CM
Integration: Cash Management Disbursement



Amounts from an application, offer, or contract are not applied to Cash Management since the cash
outflow data has not been fixed yet (amount, (partial or complete disbursement), date).
If you know the disbursement data, enter this in the disbursement. When you save the data, the
cashflows are available in CM.

(C) SAP AG AC815 5-13
SAP AG 1999
Loans management: Cash flow Loans management: Cash flow Loans management: Cash flow
05/01/YY 150,000.00 Loan disbursement 0001
06/30/YY 1,720.83 Interest debit pos. 1001
06/30/YY 639.05 Annuity repayment 1103
Planned loan disbursement
Subledger accounts 05/01/YY
E2 Domestic customers
Level 1 loan 150,000.00
TR-CM Liquidity forecast
Grouping: Grouping: Subledgers Subledgers
Bank accounts 05/01/YY
DBGIRUN 113105
Level 1* loan 150,000.00
TR-CM Cash position
Grouping: Banks Grouping: Banks
With cust. accts Without cust. accts
Integration with Treasury Cash Management




(C) SAP AG AC815 5-14
SAP AG 1999
Posting log Posting log
FI FI
document: 1600001648 document: 1600001648
05/01/YY 05/01/YY
Posting log FI document: 1600001648
05/01/YY
CoCde
PK
0001
14
40
11
40
01
50
01
50
04
02
02
11
11
11
50
12
40
12
40
Account
100036 Brown
100036 Brown
100036 Brown
100036 Brown
100036 Brown
100036 Brown
100036 Brown
100036 Brown
100036 Brown
100036 Brown
100036 Brown
100036 Brown
150600
46020
150600
194200
150600
99000
150000
299100
150600
150600
150600
150600
150600
150600
194200
150300
194200
150000
194200
Loan disbursement recon. account
Other loans
Loan disbursement recon. account
Technical clearing
Disc. receivable recon. account
Deferred income
Receivables recon.account
Other financial revenue
Loan disbursement recon. account
Loan disbursement recon. account
Loan disbursement recon. account
Loan disbursement recon. account
Loan disbursement recon. account
Loan disbursement recon. account
Technical clearing
Disc. receivable recon. account
Technical clearing
Receivables recon.account
Technical clearing
150,000.00 C
150,000.00 D
50,000.00 C
50,000.00 D
3,000.00 D
3,000.00 C
500.00 D
500.00 C
150,000.00 D
149,500.00 D
146,500.00 D
149,500.00 C
146,500.00 C
96,500.00 C
53,500.00 C
3,000.00 C
3,000.00 D
500.00 C
500.00 D
0001 A_Loan disbursement
3380 A_ Credit memo from drawings
0165 A_Discount debit position
3145 A_Process. charges debit position
3375 A_Disbursement reduction
3375 A_Disbursement reduction
3375 A_Disbursement reduction
0001 A_Loan disbursement
0001 A_Loan disbursement
0001 A_Loan disbursement
3365 A_Discount withheld
Disburse Contract: Posting Log



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

(C) SAP AG AC815 5-15
SAP AG 1999
TR - LO
Application, offer
Contract
Planned contract disbursement Subledgers: Level 1, group E2
(planned record)
Disbursement posted (act. record) Subledgers: Level 2, group E2
Interest/repayment planned rec. Subledgers: Level 1, group E2
Payment program Banks: Level 3, bank clearing acct
Current account statement Banks: Level 4, bank account
TR TR - - CM CM
With cust. accts
Integration: Cash Management - Overview (1)



Above example: Posting via customer accounts
Level 1: Inserted from loan Customizing; all other levels come from the FI account master records.

(C) SAP AG AC815 5-16
SAP AG 1999
TR - LO
Application, offer
Contract
Planned contract disbursement Level 1*, bank account
(planned record)
Disbursement posted (act. record) Level 2*, bank clearing account
Interest/repayment planned rec. Level 1*, bank account
Current account statement Level 3*, bank account
Posting without cust. accts:
(Without PR) TR TR - - CM CM
Integration: Cash Management - Overview (2)



PR - payment request
Above example: Posting without customer accounts.
Level 1*: Inserted from loan Customizing; all other levels come from the FI account master records.

(C) SAP AG AC815 5-17
SAP AG 1999
Loans Loans
subledger subledger
FI General FI General
ledger ledger
FI FI Subledgers Subledgers
G/L accounts
Customer master data
Screen control
Document types
Posting keys
Customizing: Integration with FI



In order to use the Loans subledger, you have to make settings in Financial Accounting.
For example, you have to create loan-specific account groups and number ranges in the customer
master data.
You also have to create reconciliation accounts that can only be posted to from the Loans
component.
In addition, you have to set up loan-specific field status definitions for the screen control.


(C) SAP AG AC815 5-18
SAP AG 1999
01
12
05
15
07
17
+
Implementation Guide for R/3 Customizing
Financial Accounting
Line Items
Define Posting Keys
Financial Accounting Global Settings
Document
Controls
FI Posting Keys for Loans



To use the Loans component, you have to change the field status of some of the standard FI posting
keys.
To do this, set the field status groups "Invoice reference" and "Financial assets management" to
optional entry status. When you do this, the additional fields Contract number, Contract type, and
Flow type are displayed when you enter a document with the corresponding posting keys.
For the above example, the posting keys displayed are used for account determination in Loans
Management.


(C) SAP AG AC815 5-19
SAP AG 1999
Financial 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
Accounting Customizing: Overview



In Loans Management, all postings are transferred to Financial Accounting. You must therefore set
up the appropriate accounts in FI. The standard FI payment and dunning programs are used for
postings via customer accounts.
You only have to make additional settings in the Loans Management area for dunning.

(C) SAP AG AC815 5-20
SAP AG 1999
Assets/liabilities
(1)FI posting (with or without customer)
3: Posting with or without a customer is possible.
4: Only posting without a customer is possible
CM period (saving horizon for planned records)
Dunning active
Entries for specific functions
Product type
Customizing: Product Types and Accounting
Define default for withholding indicator
for disbursement
...




(C) SAP AG AC815 5-21
SAP AG 1999
(2)FI Posting setting with/without customer (3/4)
You can only post an entry with this status if you
have entered a status for the FI posting:
3: Posting with/without a customer account is
possible.
4: Only posting without a customer account is
possible
3: The system automatically creates the FI customer
once this status has been reached (if this customer
does not already exist).
Status
Customizing: Status and Accounting



The settings for the FI posting must agree in the product type (1) and for each status (2).
If "4" is entered in the product type as well as in the status (without customer), all postings are
carried out without customers, irrespective of the entries for the condition (4) or the flow type (3).

(C) SAP AG AC815 5-22
SAP AG 1999
Ap.Fn.
001
. . .
FType
0001
. . .
Name
A_Loan disbursement
. . .
Pmnt tr. ID.
1
. . .
Flow type
Text
Payment date
Disbursement: Settlement
Payment
05/01/YY
0001
Flow Types
(3)
Per cond. group
001
Disbursement:
Settlement
002
Disbursement:
Incidentals
...
F4
Customizing Customizing
Application Application
Assign Flow Types to Condition Groups for Each
Application



In Customizing, you define which flow types may be used for specific application functions. For
example, there are two application functions for disbursement: 1) Settlement (initial screen), 2)
Incidentals. When you enter a disbursement, you can then choose from the flow types that you have
assigned.

If for example, you are entering a partial disbursement, and you want to clear the interest amounts
due for the previous partial disbursement with the partial disbursement you are currently processing,
you can select these records here (Withhold up to) if the condition type for the interest for this
application has been assigned to this condition group, and is therefore permitted.

The values for the payment transaction control for the flow type for each application have the
following meaning:
0: Non-customer posting
1: Customer posting only
2: Customer posting or non-customer posting
If you select 2, you can change the payment transaction flag for the disbursement flow in the
disbursement (you can set this indicator as a default in the company code data of the product type).
In the other cases, the information from Customizing cannot be changed in the disbursement.

(C) SAP AG AC815 5-23
SAP AG 1999
FTyp
0110
0165
3145
0001
9010
0001
9010
Name
A_Interest debit position
A_Discount debit position
A_Processing charges
A_Loan disbursement
A_Purchase order
A_Loan disbursement
A_Purchase order
RFlT
3310
3365
3345
3375
9310
3385
9320
Name
A_Interest withheld
A_Discount withheld
A_Proc. charges withheld
A_Reduc. in loan disb.
A_Purchase reduct. BNL
A_Incr. loan disbursement
A_Purchase incr. BNL
Customizing Customizing
Company code 0001
Relationships
009 Incoming payment from amnts
withheld from disbursements
011 Change in disbursement
obligation from withholding:
Debit position
042 Change in disbursement
obligation from withholding:
Credit position
F4
009
011
042
Flow types
Disbursement: Offsetting Flow






(C) SAP AG AC815 5-24
SAP AG 1999
-> Functions -> IP Postprocessing
Company code 0001
ProcCat IP
19
:
FTyp
3380
:
Name
A_Credit note from drawing
:
Flow types IP/Rejections
ProcCat IP
19
.
Credit notes for drawings
F4
Flow types
Disbursement: Flows for Drawings



In order to post drawings correctly, you have to enter specifications for each processing category (19
in this example) in Customizing. Processing categories are predefined in the system.
For each company code, you assign the corresponding flow types to the processing categories.

(C) SAP AG AC815 5-25
SAP AG 1999
Defining condition types
CTyp Name RefC FTyp1 FTyp2 Fcat FiMa Payt
200 A_Nominal interest var.
201 A_Nominal interest
...
0110
0110
TZ TZ
TZ TZ
(4)Payment transaction (= customer posting?)
Flag = Yes = Posting possible with/without customer
No flag = No = Posting without customer
Conditions
Customizing: Conditions and Accounting



For postings that are carried out with application functions, settings (1), (2), and (3) apply.
For postings that are not covered by application functions, setting (4) is used instead of (3), that is,
the information with reference to the payment transaction for the condition type.
If you do not set the payment transaction flag, the flow from the condition is not posted via a
customer account.
If you have set the flag, you can post the condition via a customer account; whether the system
actually does this or not depends on the entry in the product type (1)/status (2).

(The following situation is therefore possible: Product type 1 (mortgage loan given) and product type
2 (mortgage loan taken), both have the same condition group and therefore the same condition types.
The payment transaction flag is set in the condition types, that is, the condition flows are posted on
via customer accounts for product type 1, and without customer accounts for product type 2).

(C) SAP AG AC815 5-26
SAP AG 1999
Flow types control:
The financial mathematical basis for calculating
the cash flow (calculation type)
The effective interest calculation
Integration with Treasury Cash Management
The posting record in the G/L
(5) Account determination
Flow Types and Accounting




(C) SAP AG AC815 5-27
SAP AG 1999
Example: Loan disbursement, 1) With customer acct 2) Without customer acct
Posting record (= posting specifications)
From (40) Bal. sheet acct to 1) (14) Reconciliation acct/customer ...UNI
2) (50) Bank clearing account ...UNI
to 1) 150600 Reconciliation acct ... UNI
Disbursement obligation
2) Bank clearing account
from
Account
determination
Bal. sheet account
from
Transaction
Acct assignment ref.
- fixed -
Here: Fm 46020
Other loans
Reconciliation acct/bank clearing acct
- changeable -
Transaction or
account determination
from
Account determination
Posting Loans: Overview



To post disbursements:

You define the balance sheet account in the account assignment reference. As well as the account
number for the loan balance sheet account, the account assignment reference also contains additional
information (for example, the business area).

The account assignment reference however, is determined automatically by the system in accordance
with the rules you have defined in Customizing.

You cannot change the balance sheet account as part of the account determination for posting
transactions.

When you use terms of payment, the bank clearing account is taken from these specifications, or is
determined by the account determination. If you use terms of payment, the account that you specify
here can be changed as part of the account determination for the posting.


(C) SAP AG AC815 5-28
SAP AG 1999
Posting Loans Given and Taken
Loans given
Posted to customer
accounts
- Yes
- No payment details
(PD)
- Use of FI payment program
- Yes
- PD can be used
- Payment program for
payment requests can
be used
- No
- Yes
- PD can be used
- Payment program for
payment requests can
be used
Loans taken
Not posted to customer
accounts



If a product type is not managed on the basis of customer accounts, you can activate the use of terms
of payment in the product type details in Customizing. The following functions are then available:
- Maintenance of terms of payment for the loan/borrower's note order; if required, you can set the
data from the standing instructions of the business partner as default.
- Update in Cash Management using the house bank and house bank account specified in the
terms of payment.
- Use of the replacement rule in the account determination for the house bank account specified
in the terms of payment.
- Generation of payment requests.
- Netting with other payments processed using payment requests.

(C) SAP AG AC815 5-29
SAP AG 1999
Account assignment reference
Maintain definition
Control automatic determination
(5) Account determination
Maintain definition
Customizing: Account Assignment
Reference/Account Determination




(C) SAP AG AC815 5-30
SAP AG 1999
AcctAssRef Short text
33A < 1 Mortgage loan assignment (term < 1 year)
33A > 1
.
.
.
.
.
G/L account
.
.
46020
Company code TR00
Details
Mortgage loan assignment (term > 1 year)
Account Assignment Reference



The account assignment reference determines which G/L account (balance sheet account) you use for
loan postings. You can use different account assignment references to create different balance
sheets.
When you save a loan, the system determines and includes the account assignment reference in
accordance with certain rules.
You can still save the loan even if no account assignment reference can be determined. You cannot
however, create a disbursement, since you need to know the balance sheet account in order to be able
to post a disbursement. If necessary, you may have to maintain loan data in order for the system to
determine the account assignment reference.

(C) SAP AG AC815 5-31
SAP AG 1999
Posting specs
Accounts
Symbols
Flow type 0001
Debit 40 1 Balance
Comp
Credit 14 2.2.0
Document type DA Posting category
0001
Debit 40 1 Balance
Comp
Credit 50 3 Bank clearing
Flow type
Document type Posting category
0001
Debit 40
3.1
Balance
Comp
Credit 50
1
Bank (replacement)
Flow type
Document type Posting category
SA
SA
12
Payment trans. 2
13
Payment trans. 1
13
Payment trans. x
0110
Debit 40
4.1.1
Interest rec.
Comp
Credit 50
5.1.2
Interest received
Flow type
Document type Posting category SA
Payment trans. x
54
Disburse. oblig. Cust.
Account Determination: Posting Specifications (1)



You specify the accounts to be used in posting transactions using the account determination. The
account determination contains the posting specifications, the account symbols used for the posting
specifications, and the (G/L) accounts assigned to the symbols.

The account determination is carried out based on the flow type and the payment transaction.
Debit and credit postings are defined using the corresponding posting keys (40: G/L account debit
posting, 50: G/L account credit posting, 14: Subledger account debit posting).
The document type controls the posting in Financial Accounting (SA: G/L account document).
The following prerequisites must be fulfilled before you can post to Financial Accounting:
- All the accounts required have been created and correctly selected.
- The document type table contains the document types and permits postings to the account types
required.
- The number range connected to the document type has internal number assignment in Financial
Accounting.
- The posting periods are open for posting.


(C) SAP AG AC815 5-32
SAP AG 1999
PT Name
11 Bal. sheet to bal. sheet
12 Bal. sheet to subledger
13 Balance sheet to bank
14 Balance sheet to profit/loss
15 Bal. sheet to G/L account
21 Subledger to bal. sheet
.
31 Bank to balance sheet
32 Bank to subledger
33 Bank to bank
34 Bank to profit/loss
35 Bank to G/L account
41 Profit/loss to balance sheet
42 Profit/loss to subledger
43 Profit/loss to bank
44 Profit/loss to profit/loss
45 Profit/loss to G/L account
51 G/L account to balance sheet
:
:
Payment transaction
1 Not posted to cust. accts, no house bank
Posting specifications
0110 A_Interest debit position
0001
FTyp Name
A_Loan disbursement
:
:
:
:
2 Not posted to cust. accts, house bank acct
X Posted to customer accounts
Flow types
Posting category
Account Determination: Posting Specifications (2)



The account determination takes place in two steps:

1. The posting specifications are determined based on the flow type and the payment transaction.
They describe the type of posting in abstract form - irrespective of the chart of accounts.
For each type of posting, you define the document type, posting key, account
symbols, and the posting category.
The posting category describes the type of account to be posted to (for both debit and credit
side): 1: Balance sheet account (from account assignment reference)
2: Subledger account (customer)
3: Bank (clearing) account
4: Profit/loss account (G/L account with cost center)
5: G/L account (G/L account without cost center)

2. The account symbols are replaced by specific G/L accounts and changed where necessary. Posting
category 1 is an exception. The account symbol for the balance sheet account is replaced by the
balance sheet account defined in the account assignment reference, but cannot be changed.

Note: The entry "+" for the payment transaction is a generic entry. This means that the account
determination for this entry is only used if no account determination with another payment
transaction (x, 1, or 2) applies to the flow type.

(C) SAP AG AC815 5-33
SAP AG 1999
Acct symbols
AccountsPstg specs
Application 0101
Treasury: Loans
Acct symbol Name
:
#
3
4.1.1
1
:
:
:
Determine automat.
Balance
Bank clearing
Interest received
:
:
Symbols
3.1 Bank (replacement)
Account Determination: (Account) Symbols



Account symbols describe a group of G/L accounts. They are used to summarize postings of the
same type (for example, write-off expense).

The symbols can be used for several different posting specifications. The fine control for posting is
achieved by selecting different G/L account assignments.

Reserve a symbol for the internal automatic determination of specific data. This is relevant for
example, for the postings for the contract currency changeover.

(C) SAP AG AC815 5-34
SAP AG 1999
Accounts
Pst specs Symbols
Application 0101 Treasury: Loans
Acct symbol
Chart of accounts International chart of accounts
Acct assignment ref. Currency G/L acct
INT
:
:
:
:
3
3
4.1.1
+
+
+
+
+
+
USD
+
+
+
113105
113155
++++++++++5
273100
Chart of accts INT
Account assignment
3.1
Account Determination: Account Assignment



You assign one or more G/L accounts for the appropriate chart of accounts to the account symbol.
The multiple assignment is carried out based on the currency and/or the account assignment
reference. This permits a varied selection of all posting transactions.
Example: A customer loan is disbursed. If the contract currency is USD, the account determination
determines the account 113155, for other currencies, account 113105 is determined.
If the payment transaction is "X" - customer posting - all of the accounts to be posted to must be
specified explicitly in the account block. The bank account is determined during the payment run in
accordance with the rules defined there.

If the payment transaction is 1 - no house bank account specified - you also have to specify the
account explicitly in the account block. (Example: Account symbol 3, account specification: 113105
or 113155)

If the payment transaction is 2 - house bank account specified - the account specified in the
transaction can still be changed in the account block. You can use the replacement rule to do this.
(Example: Account symbol 3.1 with the account masked). Example: A non-customer loan is
disbursed. Current account 113100 is specified in the terms of payment. Since the in-house
preposting is carried out via a bank clearing account, the current account specification in the account
determination is changed. The last character is replaced by a "5, and the posting is therefore to
account 113105.


(C) SAP AG AC815 5-35
SAP AG 1999
Mortgage loan: 25 years, disbursem. 150,000.00 -> acct assignment ref. 30A>1
May 01 Other loans 150,000.00
May 01 0001 Cleared disburs. 150,000.00
Other loans Other loans 46020 46020
D
150,000.00
Balance sheet account
accord. to acct assgt ref.
Disb Disb. . clrg clrg acct acct 150600 150600
Disbursement
obligation
D
40 Debit Balance
14 Credit Disbursem. oblig.
Flow type
Posting specific. Posting specific.
0001 X
C
5000.00
C
Postings: Account Determination



For each flow that is relevant for posting, the system determines the corresponding posting
specifications via the flow type.
The posting specifications control how individual business transactions are posted. They contain the
rules for posting and account determination per flow type dependent on the account assignment
reference and the currency.
The posting specifications contain control information that is transferred directly to Financial
Accounting, such as the document type and the posting keys for the debit and credit sides of the
posting. The posting specifications also include information required to determine the specific G/L
and subledger accounts using the loans posting interface, such as the posting category and the
account symbols.

(C) SAP AG AC815 5-36
SAP AG 1999
Value groups > Values .
.
1 A .
B
C
2 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
Charact. 1 Charact. 2
Determination of Account Assignment Reference -
Overview



If you enter a transaction, you need the information about the balance sheet account to be posted to
(posting is carried out later).

In the loans area, the account assignment reference is determined automatically by the system.

As part of the automatic determination of the account assignment reference, certain characteristics in
the transaction are read, and an account assignment reference is determined in accordance with the
specifications for this characteristic.




(C) SAP AG AC815 5-37
SAP AG 1999
Company code 0019
Contract type 1 Loan
Product type 300 Mortgage
Business partner number
Posting system ind. for borrower's note loans
Loan type indicator
Loan class indicator
Object type
Purpose of loan
Currency....
....
Selectable characteristics
Loan maturity
Product type
Selected characteristics
ValGrp Comment
Value Comment
Value groups
Values
Double-click
E
x
a
m
p
l
e
1
2
3
Less than 1 yr
1-5 years
More than 5 yrs
01
02
03
*
Due in less than 1 yr
Term: 1 -3 years
Term: 3 -5 years
Remaining
Determination of Account Assignment Reference:
Characteristics



The automatic determination of the account assignment reference is carried out based on certain
characteristics selected in Customizing.

You define values for characteristics, and these values are then summarized in value groups.

The automatic determination of the account assignment reference is defined in the company code
either for the product type selected, and/or for all product types for the loan contract type.

The determination of the account assignment reference is carried out in two steps:1. If an entry exists
at product type level, this account assignment reference is used.
2. If no entry is determined under 1., the relevant definition for the contract type is used.

If no specification can be determined under 1. or 2., the system issues a message.

(C) SAP AG AC815 5-38
SAP AG 1999
Maturity ValGrp Product type
Acct assignment ref. allocation
Combination
AcctAss
Ref
ValGrp Maturity ValGrp Product type
ValGrp
Select and Copy
Enter and save
0001 Less than 1 year 0001 Mortgage given
0001 Less than 1 year 0002 Mortgage taken
0002 1- 5 years 0001 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
30A<1 0001 Less than 1 year 0001 Mortgage given
30B<1 0001 Less than 1 year 0002 Mortgage taken
30A 1-5 0002 1- 5 years 0001 Mortgage given
30B 1-5 0002 1- 5 years 0002 Mortgage given
Determination of Account Assignment Reference:
Allocation



Using the values and value groups defined for the characteristics selected, the system displays all of
the combinations of value groups that can be used for the automatic determination of the account
assignment reference.

You then allocate account assignment references to the combinations selected.



(C) SAP AG AC815 5-39
SAP AG 1999
Main borrower
Role '0100'
One/several loans
Accounting
Postings Debit positions Incoming payments
=
Link to Customer Accounts



There is only one customer account per loan - the account of the main borrower (role category 0100).
All postings for a loan that involve payments are made via this account.
The system also creates customer accounts for all the other loan partners with role categories
designated for posting via customer accounts. However, no postings are made to these accounts.
When incoming payments are distributed, all the receivables for a contract are held in a single
customer account. You cannot enter a customer number for an alternative payer.
Similarly, when you generate the debit position manually, you can only make postings to partners
with one customer account. The posting is also made via the customer account of the main borrower
for the specified contract.


(C) SAP AG AC815 5-40
SAP AG 1999
Product type (1)
Status (2)
Flow types (3)
Conditions (4)
Account determination (5)
Business partner (6)
If you want to make postings to customer accounts for a
particular product type and company code, you need to
make settings for the following:
_
_
_
_
_
Posting via Customer Accounts




(C) SAP AG AC815 5-41
SAP AG 1999
Reconciliation account
Terms of payment
Interest indicator
Dunning data
Payment methods
Grouping key for payments
Business partner master record: Company code data
Cash Management group
Posting to Customer Accounts: Business Partner



If you want to make postings via customer accounts for product types in a particular company code,
you can set default values for creating customer accounts automatically in Customizing. The system
then uses these values when you create a customer master record.

You can do this for example, to ensure that a customer relevant for loans always has a payment
method with individual payment - this is required for disbursement.

(C) SAP AG AC815 5-42
SAP AG 1999
-> Functions -> Disbursement -> Define plausibility checks
PTyp
30A
PlausiCat
1
File Partner Object Enc. Condition
Customizing: Disbursement Plausibility Checks



In this table you define the plausibility checks that the system should carry out for each product type
during disbursement.
The indicators mean that you can only enter a disbursement if:
- All documents in the file are marked as available
- An object is assigned to the loan
- An encumbrance has been entered
- An interest condition has been entered

If you select the Partner indicator, when you enter drawings for disbursements, only the data
(imported by the system) of the person entitled to withdraw from the partner overview of the loan is
permitted.

(C) SAP AG AC815 5-43
SAP AG 1999
Partner overview Partner overview
Partner overview Partner overview
or
- Main borrower
- Person authorized to draw
- Main borrower
Disbursement to Disbursement to
- Main borrower
- Person authorized to draw
Data: - Manual
or
- Default from
partner overview
Disbursement to Disbursement to
- Main borrower
- Person authorized to draw
Data: - Manual
Customizing: If plausibility check for partner:
Only possible: Data: - Default from
partner overview
Data of Person Authorized to Draw




(C) SAP AG AC815 5-44
SAP AG 1999
Contract
Partner
Conditions
Agent commission
Payer/Payment data
Partner
Partner bank type
Payment method
2
Role PTyp PM
0121 Other loan part. with cust.acct PS1
9000000004 Black
Eff. from Percent.
05/15/YY 0.5000 Due date
15/15/YY
Detail screen
0009000000004 Black
PS1
Payments to Third Parties



In the contract, you can also enter conditions that you, as the loan provider, owe to a third party. For
example, agent commission for negotiating the loan contract.
When you make payments to a debtor other than the main borrower, such as commission to an agent,
this payment may not be dunned, cleared against loan receivables, or taken into account when
incoming payments are processed.
This takes effect if a flow is flagged for "Payment to third parties". This indicator only applies for
flows posted via customer accounts. If the product type has not been set up for postings via customer
accounts, this indicator can be ignored.
When a contract is processed, the system requires the user to enter a payment method defined in FI
for flows (or conditions) flagged for payment to third parties.


(C) SAP AG AC815 5-45
SAP AG 1999
Transaction Management Flow Types
Payments to third parties
Product Types
Role category: 0121 'Other loan partners with cust. acct'
Company Code-Dependent Settings for Product Type
'A' : Dunning block
E
Transaction Management
Customizing: Payments to Third Parties



You need to assign role category '0121' to the third party to the contract. You can only assign
conditions to a partner in this role if the flows generated by the conditions have been flagged for
'Payment to third party'.
The flow type-based conditions generate planned records containing a dunning block and a payment
method for individual payment for incoming payments.
For this, you need to set the dunning block as default for the product type in the company code. The
system then copies the dunning block to the item generated by the flow in the customer account.
Configure the dunning block so that the item is neither dunned nor printed, for example, the standard
FI dunning block 'A'.

(C) SAP AG AC815 5-46
SAP AG 1999
Implementation Guide for R/3 Customizing
Treasury
Treasury Management
Cash Management
Securities
Loans
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
Customizing: Integration With TR Cash
Management




(C) SAP AG AC815 5-47
SAP AG 1999
FTyp Name
1000 Purch.
A_Annuity rep. debit pos. Rec.
A_Interest debit position 0110
0125
Flow type 0001
Posting
Posting
control
Incoming
pmnt
1
0001
A_Loan disbursement
A_Loan disb.
Grouping
A Inflow Flow category
Flow types
Other
Relev. to CM x
...
Double-click
FTyp
Define Flow Types
Integration: Cash Management - Loans I



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

(C) SAP AG AC815 5-48
SAP AG 1999
PTp Sts ACat Level (bank known) Level (bank unknown)
30A 60 0 LB LP
31A 60 0 LB LP
31B 60 0 LB LP
32A 60 0 LB LP
33A 60 0 LB LP
:
: :
:
Treasury : Assign Planning Levels
Company code 0001
Integration with Cash Management - Loans II



Planning levels are assigned per product type and company code, and reflect the logical source of the
cash flows held in the accounts.

Only the Status column is relevant for Loans Management.

The Bank known level is relevant for non-customer postings (cash position), the Bank unknown level
is relevant for customer postings (liquidity forecast).





(C) SAP AG AC815 5-49
SAP AG 1999
Loans Customer
Loan is flagged as 'disbursed' in the system.
Borrower has not yet received the payment.
150,000 146,500
1 1
Others
3,500 1
Postings: Disbursement to Borrower



(1) The contract is disbursed.
The contract is flagged as disbursed within the Loans component.
At this point, however, the borrower has not yet received the disbursement amount.
To make the actual payment to the borrower, you have to run the SAP payment program.
The contract is flagged as disbursed as soon as you save a disbursement.


(C) SAP AG AC815 5-50
SAP AG 1999
Cash flow in contract
Post disbursement
Cash flow in contract
Payment date Settlement amt Name P FTyp
05/01/YY 146,500 Loan disb. P 0001
Payment date Settlement amt Name P FTyp
05/01/YY 146,500 Loan disb. I 0001
'Planned
record'
'Actual
record'
Start payment program
Loan disbursed
Planned Record -> Actual Record



Flows that have been entered but not posted are displayed as P - planned record in the cash flow.
Records that have been posted are displayed as I - Actual record.
When you post a disbursement, you have only completed the posting transaction. In order to
actually make the payment to the customer, you have to trigger the relevant payment transactions.

(C) SAP AG AC815 5-51
SAP AG 1999
Proposal data set Proposal data set
N
R Edit
proposal
Master Master
Payment Payment
control control
Current Current
parameters parameters
Documents Documents
Payment run
Print data set Print data set +
Print program Print program
Check Transfer Transfer Payment Payment
advice note summary
Payment
medium
Proposal run
Automatic Payments: Payment Program



The payment program processes the disbursement obligations further and pays them. After you have
run the print program, the payment media created are passed on to the house bank. The house bank
then, for example, transfers the amount to the borrower.

(C) SAP AG AC815 5-52
SAP AG 1999
Loans Customer
150,000 146,500
Bank clearing
146,500
2
1
1
2
146,500
Bank account
146,500 3
3
146,500
Others
3,500
1
Postings: Payment Program for Disbursement



(1) The contract is disbursed.
(2) Once the payment program has been run, the borrower receives the loan as an individual
payment, either by bank transfer or by check.
(3) The house bank carries out the transfer and debits the current account. You receive an
account statement and then process this data in the system.

(C) SAP AG AC815 5-53
SAP AG 1999
Disburse a loan that has been entered, that is,
post the loan
Configure the system in such a way that posting
transactions can be carried out correctly
You are now able to:
Disbursement: Unit Summary




(C) SAP AG AC815 5-54
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.

1 Disbursing a loan.

1-1 Create a copy of an existing loan contract and disburse this contract.
You want to withhold processing charges amounting to 100 UNI from the
disbursement amount. Look at the posting log after the contract disbursement
and make a note of the document number.

1-2 Check the effect of the disbursement in Cash Management.

2 The system determines the account assignment reference automatically using
the product type and maturity. Check the settings for the automatic determination of
the account assignment reference for mortgage loans for the product type that you set
up, 9XX

3 To continue, set up the account determination for the flow type you defined in the previous unit
Sxx(Special charge). To do this, copy the account determination for the flow type 3145 with
the payment transaction X (with customer accounts).


(C) SAP AG AC815 5-55
Disbursement Solutions



Unit: Disbursement



At the conclusion of these exercises, you will be able to:
Enter a loan disbursement
Check the account assignment reference determination

1 Disbursement
1-1 Create a new contract using the copy function.
Accounting
Treasury
Loans
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.

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.

(C) SAP AG AC815 5-56



Ensure that the charges are withheld (field Withhold up to).
Only the flow types permitted for disbursement flows and
disbursement incidental cost flows are displayed.

1-2 Effect on Cash Management.
Accounting
Treasury
Cash Management
Information system
Reports on Cash Management
Liquidity analyses
Cash position
Field name or data category Values
Company code TRXX
Grouping BANKEN



The contract is only visible in CM once you save/post a
disbursement.

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

(C) SAP AG AC815 5-57

Field name or data category Values
Company code TRXX
Product category 300

The following screen contains the characteristics used to determine the account
assignment reference. You can display the exact combination of characteristics via
Account assignment reference allocation.
You can display the individual characteristics in the value groups by selecting Value
group.


3.Customizing: Account Determination
Treasury
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



(C) SAP AG AC815 6-1
SAP AG 1999
Generating due items
Entering incoming payments from the borrower
Open items: Clearing, interest on arrears, dunning,
waiver, write-off
Customizing:
- Flow types
- Incoming payments
- Dunning
Contents
Payments Due




(C) SAP AG AC815 6-2
SAP AG 1999
Post incoming payments using the manual bank
statement
Explain how incoming payments are processed in
the system (correct amounts, overpayments,
underpayments)
At the conclusion of this unit, you will be able to:
Payments Due: Unit Objectives




(C) SAP AG AC815 6-3
SAP AG 1999
Loans Management
within SAP Treasury
Closing operations
Rollover
Special cases
Complete process
including master data
Contract currency
changeover
Disbursement
Course overview
Process flow for
loans given
Loan contract
Payments due
Course Overview Diagram




(C) SAP AG AC815 6-4
SAP AG 1999
Interest and repayments on loans given are due at
the end of the month.
One customer transfers the correct amount for the
payments due; another customer transfers an
amount that is too high.
Payments Due: Business Scenario




(C) SAP AG AC815 6-5
SAP AG 1999
- Create loan
- Business partner
- Conditions
- Correspondence
- Disburse/post loan
- Integration with CM
- Integration with FI
- Post amounts due
- Incoming payment postprocessing
I Interested Appl nterested Appl. . Offer Contract Offer Contract Disburse Disburse- - Other Rollover Rollover
party party ment ment activities
Mortgage Loans - Processing Seq./Contract
Transaction management Portfolio/Accounting




(C) SAP AG AC815 6-6
SAP AG 1999
Payment program and/or bank statement
Post interest payments/repayments due
Payment program
Debit position
Disburse contract
Application/Offer/Contract
Example Business Process: Debit Position




(C) SAP AG AC815 6-7
SAP AG 1999
Debit position
Carry out posting: Mass processing
--> Post planned records
Carry out posting: Per contract
--> Post individual loan
Debit Position: Mass Processing <-> Per Contract




(C) SAP AG AC815 6-8
SAP AG 1999
MM/DD/YY Interest 500 UNI
MM/DD/YY Repayment 1,000 UNI
Cash flow
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
MM/DD/YY Interest 500 UNI
MM/DD/YY Repayment 1,000 UNI
Cash flow
I
I
Bal. sheet acct
1,000
Receivables recon. acct
- Customer
1,500
Interest received
500
Posting Planned Records - General Description



When you carry out an automatic debit position run, the system processes both planned records
resulting from the cash flow, and postings entered and released manually in subsequent posting
applications (such as disbursement). The items due are posted according to the settings defined in the
account determination.
Exception: The system does not select the items with the posting control key '21' (manual debit
position).


(C) SAP AG AC815 6-9
SAP AG 1999
The automatic debit position run also:
Clears advance payments created (if the
incoming payment was posted before the debit position)
Clears receivables (if the incoming payment is
automatically created during the debit position run)
Automatic Debit Position Run - Tasks



Advance payments assigned to planned records are cleared by the automatic debit position run.
The receivables are cleared by the debit position run if you have set the 'Generate incoming payment
immediately' indicator. In this case, the system automatically makes a posting to the bank clearing
account parallel to generating the debit position.
Depending on the conditions defined in the contract, the system splits the debit position into the
respective parts for the main borrower and the subsidy office. In the subledger, both debit positions
are assigned to the loan account. In the general ledger, part of the position is held in the customer
account for the main borrower, and the other part is held in the customer account for the subsidy
office.


(C) SAP AG AC815 6-10
SAP AG 1999
E
E
E
Company code 0001 To
Product type 30A To
Loan number To
Only loans disbursed
Selection of loans by currency and interest calc. types
LC loans with reference interest rates
LC loans with other interest calculation
Loans acc. to planned principle
Loans acc. to actual principle
Only display loans not updated
Preparation for the Debit Position Run: Update
Planned Records



The planned record update function regenerates the cash flow on the basis of the conditions and the
postings that have been made, and writes the planned records to the database.
This function also allows you to carry out interest rate adjustments. When you run this report
program, for example, the system adjusts any amounts which depend on reference interest rates to
reflect the reference interest rates currently defined in the system. This also applies to foreign
currency loans; the planned records update recalculates the planned records using the appropriate
current exchange rate in the system.
When you create a contract, the system writes the cash flow for the CM period defined in
Customizing to the database (see Customizing for product type). This is only done however up to the
date for the end of the update, as long as this is within the CM period.
You should run this program for all loans at least every six months, in order to make the cash flow
available for the full CM period. Loans that depend on reference interest rates, and foreign currency
loans, obviously need to be updated more frequently to ensure that the current values are calculated
before posting.

(C) SAP AG AC815 6-11
SAP AG 1999
Company code
Contract number
Partner
Product type
Payment method
Up to & incl. due date
Posting date
Document text
Log
Test run
0001
10000000
?
06/30/YY
Loan debit position
Automatic Debit Position Run: Post Planned
Records



The automatic debit position run selects all of the due items in the contracts you have chosen on the
selection screen. All of the planned records for the loans selected that are due either on or before the
date in the Up to and including due date field are posted.
(You have already defined whether the debit positions should be generated manually or
automatically on the detail screen for the contract conditions).
If you want to simulate the run for control purposes, for example, use the Test run function.
The selection rejects all planned records from contracts that have not been released and that do not
have the posting control indicator '01' (automatic debit position).
If errors occur during the debit position run, the system does not process any of the planned records
selected from the corresponding main borrower. In this case, the system omits the contract that
caused the error as well as all of the other contracts of the main borrower that have been selected.

(C) SAP AG AC815 6-12
SAP AG 1999
CoCd Document No. Date Doc.type Contr.type Contract number FType
PK Account G/L Currency
CoCd Document No. Date Doc.type Contr.type Contract number FType
PK Account G/L Currency
Posting log
Loan debit position
09/01/YY
Posting log
Loan debit position
09/01/YY
0000010000000 1 DA 06/30/YY 0001
01
01
10000000
Brown
150200
Interest receivables
1,720.83 D 0110
0120 639.05 D 150100
Repayment receivables Brown
10000000
UNI
UNI
1,720.83 C
639.05 C
273100
46020
Interest received
Other loans
50
50 UNI
UNI
Automatic Debit Position Run



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

(C) SAP AG AC815 6-13
SAP AG 1999
Loans Customer
150,000 146,500
Bank clearing
146,500
2
1
1
2
146,500
Bank account
146,500 3
3
146,500
Others
3,500
1
2,359.88
4
1,720.83
4
Others
639.05 4
Postings: Automatic Debit Position



(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.

(C) SAP AG AC815 6-14
SAP AG 1999
Evaluate Evaluate
Customer line items
Customer acct analysis
Accounting - Evaluations I



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


(C) SAP AG AC815 6-15
SAP AG 1999
Payment program and/or bank statement
Post interest payments/repayments due
Payment program
Disburse contract
Incoming payments
Application/Offer/Contract
Example Business Process: Incoming Payment




(C) SAP AG AC815 6-16
SAP AG 1999
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
Sources of Incoming Payments for Loans




(C) SAP AG AC815 6-17
SAP AG 1999
Payment received from customer
By transfer By direct debit
or
by check
Bank statement Payment program
Bank statement
Bank
File
Application
of funds
~~~~
~~~~
~~
Bank
Automatic bank statement Manual bank statement /
Payment Options: Bank Statement



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

(C) SAP AG AC815 6-18
SAP AG 1999
The following data is required for the debit memo procedure:
Summarization level for incoming payment distribution (1, 2, or 3) to control
the distribution level for the debit memos
(Customizing: Company Code-Dependent Settings for Product Type)
Bank details and collection authorization
(Application: Business partner master record)
Bank type for the condition: Payment method 'E' in the condition
(in the loan)
Debit Memo Procedure




(C) SAP AG AC815 6-19
SAP AG 1999
Proposal data set Proposal data set
N
R Edit
proposal
Master Master
Payment Payment
control control
Current Current
parameters parameters
Documents Documents
Payment run
Print data set Print data set +
Print program
Check Transfer Transfer Payment Payment
advice note summary
Payment
medium
Proposal run
Automatic Payments: Payment Program




(C) SAP AG AC815 6-20
SAP AG 1999
Loans Customer
150,000 146,500
Bank clearing
146,500
2
1
1
2
146,500
Bank account
146,500 3
3
146,500
Others
3,500
1
2,359.88
4
1,720.83
4
Interest received
639.05 4
2,359.88 5
2,359.88 5
2,359.88 6
2,359.88
6
Incoming Payments by Direct Debit



(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.

(C) SAP AG AC815 6-21
SAP AG 1999
Import data via the electronic bank statement, or enter the data
from the bank statement manually.
The payments are received for one main borrower (customer). The
incoming payments are distributed to loan customer accounts on
the basis of the open items for these accounts.
To clear postings for a manual bank statement, either create batch
input sessions, or post the clearing immediately.
When you process these sessions, or when you post clearing, the
system clears the open items. Clearing is posted to FI and
subledgers where necessary.
Bank Statement




(C) SAP AG AC815 6-22
SAP AG 1999
*** in accordance with the field "IPD control" in the loan basic data
Manual/Electronic Bank Statement
Incoming
payment
Assignment
to
customers/
finance project
or
contract
Clearing
of
open
items
determined
***
Incoming Payment Distribution: Process



The incoming payment distribution is used to assign an incoming payment to the loan(s) of a
customer/finance project/loan contract.
The system then tries to clear open items at the distribution level determined.

(C) SAP AG AC815 6-23
SAP AG 1999
Business partner "Brown", customer 100036
Contract 1 Contract 2 Contract 3 Contract 4 Contract 5 Contract 6
Finance project A Finance project B Finance project C
Incoming Payment Distribution: Level



If a customer has several loans, you agree the units in which he manages his loans.
- If he pays items due for all loans in one total, select IPD level Customer. The incoming payment
is then distributed to all of the customer's loans in accordance with certain rules.
- If the customer makes separate payments for each contract, select the IPD level Contract. The
incoming payment is then used for the appropriate contract.
- If the customer wants to manage several contracts together, group the contracts via the field
Finance project, and then select IPD level Finance project. The incoming payment is then
distributed to all of the customer's loans in accordance with specific rules.

(C) SAP AG AC815 6-24
SAP AG 1999
Customer open items
OI filter at contract, finance project,
or customer level
Prioritization rules defined
Incoming payments distribution
Incoming payment (credit memo in acct statement)
Incoming Payment Distribution: Overview



The contract filters (IPD level) determine which open items are selected. These items are then
compared with the incoming payment in accordance with the prioritization rules.
You define prioritization rules for incoming payment distribution in Customizing. Prioritization
according to flow type is frequently used. This means that the payment clears interest or charges
receivable before the repayment.
You define the distribution level for incoming payments and direct debits in Customizing (payment
summarization level in the company code-dependent settings for the product type). You define the
distribution level for incoming payments from transfers in the basic data for the contract (IPD
control; default from the company code-dependent settings for the product type).

(C) SAP AG AC815 6-25
SAP AG 1999
Open
items
Other
overpayment
or
qualified
overpayment
Rejection
Receivables
cleared
Advance payment
Credits
for specific
purpose
Other
credits
OI clearing
and
residual items
Outstanding
receivable
Distribution to ...
Assignment of Incoming Payments



The incoming payment is assigned to one or more loan contracts and the IPD level is determined. If
this is not possible, for example, because no contract number has been specified, the amount is
posted to a rejection account. Rejections are processed manually later on.
The incoming payment amount is compared with the open items of the loan in accordance with the
IPD level. The following situations are possible:
- The total of the open items agrees with the incoming payment --> The open items are cleared.
- The incoming payment amount is less than the total of the open items. Depending on the
settings in Customizing, either the total incoming payment is posted as an overpayment, or the
open item is cleared, and a residual item is created as a new open item in the amount of the
difference.
- The incoming payment amount is higher than the total of the open items. Depending on the
settings in Customizing, either the total incoming payment is posted as an overpayment, or the
open items are cleared, and an overpayment is created in the amount of the difference.
- There are no open items, but there is a planned record for this amount that is due soon. The
incoming payment record is posted as an advance payment and is cleared with the open item in
the next debit position run.
In Customizing, you define whether overpayments are "others" or "qualified". Other overpayments
can only be processed manually, qualified overpayments can be processed both manually and
automatically.

(C) SAP AG AC815 6-26
SAP AG 1999
Account
statement
Manual
entry
Interim data
set
G/L accounting
documents
Sub- ledger
accounting
documents
Post
directly
Incoming Transfer: Example of a Manual Bank
Statement



If your bank account statement is available, the transactions for the account in the system are used.
An interim data set is created, based on the data entered. This then has to be posted. The posting can
either be carried out immediately, or later using batch input.

The postings always affect the general ledger (bank account and bank clearing) and possibly also the
sub-ledger account.


(C) SAP AG AC815 6-27
SAP AG 1999
Case 1
The customer transfers the correct amount to cover the interest
and repayments due. How is this treated in the system?
Case 2
The customer transfers more than is necessary to cover the interest
and repayments due. How is this treated in the system?
Examples of Incoming Payment Processing




(C) SAP AG AC815 6-28
SAP AG 1999
Case 1
The customer transfers the correct amount to cover the interest
and repayments due. How is this treated in the system?
Processing Incoming Payments (Case 1)




(C) SAP AG AC815 6-29
SAP AG 1999
House bank DB
Account ID GIRUN
1
Statement number
Controls
Beginning balance
Statement date 0//01/YY
Sel. of payment advices
Planning type
Ending balance
Posting date
2,359.88
07/01/YY
Further processing
Bank posting session
Subledger session
BAPO
SLPO
Bank postings only
Statement date
Planning date from
Processing Manual Bank Statements (Case 1)



In Cash Management Customizing, you define different variants for the entry screens for account
statement data. For the loans area, you must define a field for specifying the contract number. If
you do not specify a contract number, the incoming payment is posted to the rejection account.
You have to enter the following data: - Statement date- Posting date for the account statement. If you
do not specify a posting date, the statement date is copied into this field.

With regard to clearing open items, the incoming payments are compared with those open items
where the debit position posting date is earlier than, or the same as, the posting date for the bank
statement.

(C) SAP AG AC815 6-30
SAP AG 1999
Tran. Value date Amount Customer C Contract no. Coll.inv.
Bank acct 110113100 G/L acct 113100
Bank statement items
Credit memo Client Contract type
transfer Loan contract
CoCde
0001 Currency UNI
10000000 051 07/01/YY 2,359.88 100000000 1
Entering the Items (Case 1)



The transaction code defines the type of posting, for example, check credit memo, credit memo from
bank transfer, and so on.
You must specify the contract number; if you do not, the assignment to loan contracts cannot be
carried out. The system determines the customer from the contract number specified.

(C) SAP AG AC815 6-31
SAP AG 1999
Loans Customer
150,000 146,500
Bank clearing
146,500
2
1 1
2
146,500
Bank account
146,500 3
3
146,500
Others
3,500
1
2,359.88
4
1,720.83
4
Interest received
639.05 4
5 2,359.88 5 2,359.88 Bank ledger session Subledger session
Key:
5 2,359.88
5 2,359.88
5 2,359.88
5 2,359.88
Incoming Payments by Bank Transfer (1)



(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.

(C) SAP AG AC815 6-32
SAP AG 1999
IMG: Financial AccountingBank AccountingBusiness Transactions Payment
Transactions Manual Bank Statement
AC805 Cash Management
Create Keys for Posting Rules
Assign Business Transactions
Define Posting Rules for Manual Bank Statements
Define Variants for Manual Bank Statements
Customizing: Manual Bank Statement



Before you can use the manual bank statement function, you need to make certain settings in the
IMG for TR Cash Management.
It is advisable to create a new account assignment variant that includes the relevant fields for loans,
or at least the contract number.

(C) SAP AG AC815 6-33
SAP AG 1999
Case 2
The customer transfers more than is necessary to cover the
interest and repayments due. How is this treated in the system?
Processing Incoming Payments (Case 2)




(C) SAP AG AC815 6-34
SAP AG 1999
Controls
Sel. of payment advices
Further processing
2,459.88
Bank posting session
Subledger session
BAPO
SLPO
House bank DB
Account ID GIRUN
Statement date
1
07/01/YY
Beginning balance
Ending balance
Posting date 07/01/YY
Planning type
Statement date
Planning date from
Bank postings only
Statement number
Processing Manual Bank Statements (Case 2)





(C) SAP AG AC815 6-35
SAP AG 1999
Tran. Value date Amount Customer C Contract no. Coll.inv.
Bank acct 110113100 G/L acct 113100 CoCde 0001 Currency UNI
Bank statement items
10000000 051 07/01/YY 2,459.88 100000000 1
Entering the Items (Case 2)




(C) SAP AG AC815 6-36
SAP AG 1999
Loans Customer
150,000 146,500
Bank clearing
146,500
2
1
1
2
146,500
Bank account
146,500 3
3
146,500
Others
3,500
1
2,359.88
4
1,720,83
4
Interest received
639.05 4
5 2,459.88 5 2,459.88 Bank ledger session Subledger session
Key:
5
2,459.88
5 2,459.88
5 2,459.88
5
2,359.88
100.00
Incoming Payments by Bank Transfer (2)



(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.

(C) SAP AG AC815 6-37
SAP AG 1999
IP Distribution
IP Distribution OI Sort
Define Evaluation Criteria
Define Priorities
Define Sort Sequence
Define Evaluation Criteria
Assign Flow Type to Evaluation Criteria
Evaluation Criteria Management
IP Distribution AP/OP
Payment Level
Limit Value/Amounts Equal
Assign Account Statement
Other Settings
I.
II.
Customizing: Incoming Payment Distribution



You have to make settings for incoming payment distribution in the IMG. The setting levels can be
divided into three sections:
- IP Distribution OI Sort
Here, you define the criteria according to which open items should be sorted and made available for
clearing. For example, you could configure the system to clear charges before interest payments or
repayments.
- IP Distribution AP/OP
Here, you define evaluation criteria and then assign flow types to the criteria. For example, you can
configure the system to assign payments made before they are due to the corresponding planned
records, or post them as overpayments.
- Other Settings
Under 'Payment level' you define the incoming payment variants, which in turn comprise four
parameters, such as whether payments should be summarized at contract level.
Under 'Limit value', you define the limits for when incoming payments should be accepted as
overpayments.


(C) SAP AG AC815 6-38
SAP AG 1999
Incoming payment (IP)
Rejection
Contract number specified?
Assignment to IP level?
Open items?
Yes
No
I.
Yes
No
No
Yes
Rejection
Incoming Payment I.




(C) SAP AG AC815 6-39
SAP AG 1999
Open items?
Yes No
No
Yes No
Yes
IP = OI IP < OI IP > OI
Distribution rules
OI clearing
OI clearing
and
residual items
OI clearing
and
overpayment*
Overpayment*
No
Over-
payment*
Over-
payment*
Advance
payment
Yes
No Yes
II.
IP = OI?
Do planned
records exist?
IP = Planned record? IP limits observed?
Incoming Payment II.




(C) SAP AG AC815 6-40
SAP AG 1999
Manually
Automatic
(incl. clearing
other overpayments)
(incl. clearing
qualified overpayments)
Rejections/overpayments
Clear customer open items
Create advance payment
Create overpayment
Carry out refund by bank transfer
Menu: Rejections/Customer accounts/Clear overpayments
Incoming Payment Postprocessing



The incoming payment postprocessing functions allow you to process incoming payments that are
held in the rejections account or have been posted as advance payments or overpayments. You can
use the incoming payment amount to: Clear open items; create advance and overpayments; carry out
refunds by bank transfer; post discount prepayments; post amounts to revenue.
Under Rejections, you can manually edit all of the incoming payments that could not be processed.
Under Customer accounts, you can manually edit all incoming payments for a customer (or several
customers) which were posted as an advance payment or overpayment.
Under Clear overpayments, you can automatically process the incoming payments that were posted
as qualified overpayments. You can use this program to automatically clear debit positions with
qualified overpayments on a unit level (contract, finance project, customer) for assigned loans. This
function is useful if the planned records have changed between the time when the incoming payment
was posted and the time when the program Clear overpayments is run, for example, because of an
interim debit position.
Example: Planned record 500 UNI. Incoming payment 520 UNI, qualified overpayment. Debit
position run, actual record 500 UNI. Overpayment cleared automatically, open item 500 UNI
cleared, qualified overpayment 20 UNI.

(C) SAP AG AC815 6-41
SAP AG 1999
Case 2
The customer transfers more than is necessary to
cover the interest and repayments due.
The payments have been cleared and the difference
arising has been posted as an overpayment.
You want to refund this difference by bank transfer.
How do you proceed in the system?
Processing Incoming Payments - Case 2




(C) SAP AG AC815 6-42
SAP AG 1999
Incoming payment information
Assigned items
Loans
Contract no. 10000000
To be cleared
To be assigned
100.00
0.00
IP Name
Val. date
Approp. of other overpymnts
09/01/YYYY
PT PT Name Contract no. Accept. amount
Customer DT Text
05
Refund transfer 1000000 100.00
100000000 4590 Appropr. refund transfer AP/OP
Open items Refund transfer Advance pyment
IP Postprocessing - Customer Accounts



Via the 'Customer accounts' function, you can make a refund to a customer.
On the initial screen, you enter the number of the contract and execute the program.
The system first displays an overview of all the advance payments or overpayments to be processed.
When you select the relevant amount, the system takes you to the above screen.
You can either assign the amounts to be processed manually to customer open items, or you can
convert them into an advance payment by assigning the amount (equal amounts) to one of the
planned records listed; or, select Refund transfer to refund the money to the customer.

(C) SAP AG AC815 6-43
SAP AG 1999
Loans Customer
150,000 146,500
Bank clearing
146,500
2
1
1
2
146,500
Bank account
146,500 3
3
146,500
Others
3,500
1
2,359.88
4
1,720.83
4
Interest received
639,05 4
5 2,459.88 5 2,459.88 Bank ledger session Subledger session
Key:
5 2,459.88
5 2,459.88
5 2,459.88
2,359.88
100.00*
100.00 6
6 100.00
5
Incoming Payment Postprocessing: Example



(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.

(C) SAP AG AC815 6-44
SAP AG 1999
Customizing: Flow Types for Incoming Payments
Flow type
Flow category
Assets/Liab. Lending business
...
IP Clearing
Relev. to CM
4530 A_Appropr. of qual. OP (IP-D)
ZVZ
0
Grouping
Posting
.
02 Advance payments
03 Qualified overpayment
04 Other overpayment
05 Transfer qual. overpmnt
06 Transfer other overpmnt
07 Refund by bank transfer
08 Transfer advance pmnt
03
F4



A flow type can only be used for either an asset loan (loan given) or a liability loan (loan taken).
If you want to transfer the amounts from a flow type to Cash Management, set the indicator Relevant
to CM.
Payment details can (only) be used for loans not managed via customer accounts.

(C) SAP AG AC815 6-45
SAP AG 1999
FTyp
0110
0125
0110
4530
0110
Name
A_Interest debit position
A_Annuity rep. debit position
A_Interest debit position
A_Appropr. qual. OP (IP - D)
A_Interest debit position
RFT
3210
3225
3310
4531
4535
Name
A_Interest IP
A_Annuity repayment IP
A_Interest withheld
A_Reduce qual. overpymt
A_IP fr. clrg qual. OP (int.)
Customizing
Company code 0001
Relationship
001 Incoming payments
009 IP from amounts withheld
from disbursements
013 Reduction of overpayment
023 IP from reduced overpayment
....
F4
001
009
013
023
Offsetting Flows



For certain transactions, you have to enter the relationship between the flow types concerned. You
assign the offsetting flow type (reference flow type) to a corresponding flow type. The relationship
type indicates the technical relationship between the flow types.
Example: An interest receivable due item is created by the debit position run; this means that flow
type 0110 is posted. When you receive the customer payment, the incoming interest payment is
created using flow type 3210. In order for the incoming payment to be able to close the items for
which it is being made, create the relationship between these two flow types as an offsetting flow
type.
Further example: The customer transfers an amount that is too high, an overpayment is created: Flow
type 4530, bank clearing to overpayment. In incoming payment postprocessing, the overpayment is
used to pay the interest receivable. Clearing the overpayment: Flow type 4531, overpayment to
overpayment clearing. The interest debit position is cleared: Flow type 4535, overpayment clearing
to customer.
See the IMG documentation for a complete description and examples of the relationship types that
are relevant for Loans Management.

(C) SAP AG AC815 6-46
SAP AG 1999
Company code 0001
ProcCat IP
01
:
09
FTyp
4505
:
4590
Name
A_Rejection appropriation
:
A_Apportion refund tr. AP/OP
Flow types IP/Rejections
Customizing: IP Postprocessing



In order to be able to create and post rejections, advance payments and overpayments when you
postprocess incoming payments, you need to make certain settings for the processing category in
Customizing. Processing categories are predefined in the system.
For each company code, you assign the corresponding flow types to the processing categories.

(C) SAP AG AC815 6-47
SAP AG 1999
Evaluate Evaluate
Account statement
Posting journal
Accounting - Evaluations II



Via the Account statement' function, you can display all of the postings relating to a particular
contract.
Via the 'Posting journal' function, you can view all the postings for the loans area.

(C) SAP AG AC815 6-48
SAP AG 1999
Account statement Date 07/01/YY
From: 01/01/YY to: 12/31/YY
10000000 Brown/ 1 Main Street / Washington DC 20433
Mortgage loan
PostDte
05/01/YY
05/01/YY
05/01/YY
06/30/YY
06/30/YY
ValueDte
05/01/YY
05/01/YY
05/01/YY
06/30/YY
06/30/YY
Doc.no.
9
9
9
14
14
R FTyp
0001
0165
3365
0110
0125
Name
Disbursement
Disc. debit position
Discount withheld
Int.debit position
Annuity rep.
Debit
150,000
3,000
1,720.83
639.05
Credit
3,000
FI document Loan
document
Evaluations: Loan Account Statement



You can use the 'Account statement' function to display all the relevant posting information for a loan
or for all the loans for one partner. You can change the time period in the display. You can also
display an overview of the open items for this contract.
From within the evaluation, you can branch to the corresponding FI (G/L) and loan (subledger)
documents.

(C) SAP AG AC815 6-49
SAP AG 1999
- Debit position run preparation: Planned record update
- Execute debit position run
- Debit position run postprocessing: Automatic overpayment clearing
1. Generating receivables due
- Collect receivables due: Start payment program
or
- Wait for incoming payment by check/transfer
2. Amount due is paid by customer
Debit Position: Unit Summary



Before you carry out the debit position run, you have to update the planned record amounts for third-
party loans (exchange rate) and variable interest-bearing loans (reference interest rate).
After the debit position run, start the report "Automatic clearing of open items" to clear customer
credits (overpayments) with receivables due, so that the "net receivables" are open items in the
customer account.

Example:
- Amount due on 15.10.: 100 UNI; planned record
- Customer transfer on 05.10.: 80 UNI; based on the value limits in Customizing, the 80 UNI is
posted as a (qualified) overpayment.
- Debit position on 15.10.: 100 UNI; actual record
- Automatic clearing of overpayment: Open item of 100 UNI is cleared by the 80 UNI overpayment
and a residual item in the amount of 20 UNI is created.
- Payment program: Collect the receivables by direct debit: 20 UNI.

If the automatic clearing of overpayments had not been carried out, the payment program would
have collected 100 UNI.

(C) SAP AG AC815 6-50
SAP AG 1999
Open items
Clearing by
incoming payment
Full waiver
Partial waiver
Complete
write-off
Interest on
arrears/dunning
OI closed
OI closed OI closed
Open Items



If an open item is due and is not paid, interest on arrears, dunning interest, and dunning charges can
be charged.
If an open item is not paid, it can be cleared by a waiver or a write-off. From a technical point of
view, both functions are the same; however, you cannot enter a partial write-off.
You can differentiate between a waiver and a write-off by using different flow types with different
account determination.
For example, you could write-off amounts that you may still collect from the customer. If an amount
is waived, you no longer try to collect it.
Example: Open item 100.75 UNI. The customer transfers 100 UNI. The 0.75 UNI is waived.

(C) SAP AG AC815 6-51
SAP AG 1999
Customer open items due (dunned or not dunned)
FI/loan: Determination of interest on arrears: Overdue items
Loan: Post interest on arrears
Loan: Process the batch input sessions created
(to enter the interest on arrears key date in the customer master record)
Interest on arrears is an open item in the customer account
Interest on Arrears: Overview



The determination of interest on arrears is supported for loans given that are based on customer
accounts.
The determination and posting of interest on arrears is controlled by two separate reports.


(C) SAP AG AC815 6-52
SAP AG 1999
Customer selection
to
to
Customer account
Company code
Calculation period
Interest indicator
to
to
Posting control
Interest to Fin. Assets Man.
Post interest settlements
Maintain master records
Batch input session name RFDUZI00
x
Calculate Interest on Arrears Calculate Interest on Arrears Calculate Interest on Arrears
Overdue Items: Determination of Interest on
Arrears
Other accruals/deferrals



Calculation of interest on arrears:Item interest calculation (from FI): You can calculate interest on
open items that are overdue.
(Note: The item interest calculation refers to customers/vendors; account balance interest calculation
refers to G/L accounts).
For loans given, Loans Management uses the standard accounts receivable program for calculating
interest on arrears. The standard program has been enhanced to support the transfer of interest to
Loans Management (indicator Interest to Fin. Assets Man.).
For item interest calculation, you can choose the interest indicators that are defined with interest
calculation type P in Customizing. The calculation of interest on arrears at loan condition level is
controlled by the interest indicator.
To avoid interest on arrears being calculated on open items more than once, select the indicator
Maintain master records; the batch input session specified is then created. When you process the
batch input session, the key date for the last interest calculation run is entered in the customer master
record; this ensures that when you recalculate interest on arrears, no interested is calculated on the
open items up to the key date specified.
Interest settlement indicator: Not relevant for posting loan items; there is no special posting report.

(C) SAP AG AC815 6-53
SAP AG 1999
Posting date
Document date
Due on
Text
Flow type
Interest on arrears
Delete entries up to
Post Interest on Arrears Post Interest on Arrears Post Interest on Arrears
?
E I
06/16/YY
06/16/YY
07/01/YY
Posting Interest on Arrears



The interest on arrears calculated that is transferred to the loan is posted using the above report.

Using the field Delete entries up to, you can have the system save the data for the interest on arrears
posted so that you can access the posting data if queries arise. All records that have been saved up to
the date entered are deleted from the database.

(C) SAP AG AC815 6-54
SAP AG 1999
Customer open items due (interest on arrears calculated/not calculated)
Dunning run: - Determination of dunning proposal
- Determination of dunning interest and charges
Dunning notice printout: - Dunning notices printed
- Dunning interest and charges posted
Dunning interest and charges are open items in the customer account
Dunning: Overview



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

(C) SAP AG AC815 6-55
SAP AG 1999
Customer/vendor
master record
Document
Basic
parameters
Current
controls
FI Loans
Contract
data
General data:
Address
Controls
Payment
transactions
Company code
data:
Acct mgt
Payment trans.
Correspondence
Dunning data
Baseline date
Payment
terms
Dunning date
Dunning
levels
Dunning
block
Dunning levels
Charges
Minimum
amounts
Dunning text
Grace days
:
Date of
dunning notice
Account
selection
Company code
selection
:
Dunning
settings
for contract
Customizing
Settings for
dunning in
the Loans
IMG
Influencing Factors for Dunning



The dunning of loan items is based on the data and settings in FI. In the Loans area, you have to
either add or make alternative entries.

(C) SAP AG AC815 6-56
SAP AG 1999
Dunning area
Dunning procedure
Dunning levels
Dunning key
Dunning block
Dunning grouping
Dunning: Terms



Dunning areas are used if several organizational units within a company code are responsible for
processing dunning; these are defined as dunning areas that can use different dunning procedures.
You enter the dunning areas in the customer master record.
On the condition detail screen for a loan, you can define one of the loan areas defined for the
business partner as the area to be used for dunning open items that are due from this condition.
The dunning procedure is a defined procedure that determines how business partners are dunned. It
determines: The number of dunning levels, interest indicator, dunning frequency, dunning texts, and
so on. You determine the dunning procedure for a dunning area in the customer master record.
Dunning levels: Specify how often an item/account has already been dunned.
Interest indicator: Interest rates defined for the dunning interest of the dunning program.
You can use the dunning key to restrict the dunning levels of an item.
Dunning block: Indicator that specifies why an item/account is blocked for dunning. You set this
indicator manually when required.
Dunning grouping: A customer dunning grouping is no longer considered if the loan items
concerned are to be dunned. The grouping is carried out using the dunning summarization levels that
are defaulted in the contract and that can be assigned individually.


(C) SAP AG AC815 6-57
SAP AG 1999
Borrower Brown/ 1 Main Street / Washington DC 20433
Partner list
Name Name/address
Brown/ 1 Main Street / Washington DC 20433
Partner
900000001
Customer
1000000000
Select partner (or "double-click")
Treasury - Business Partner Management
Partner
Classification Application Mortgage loan
Main
borrower
BkTy PM
900000001
Natural person
R D
Loan: Business Partner Overview



You can either create a business partner in advance (in general business partner management for
Treasury or in the 'Loans' menu), or define the business partner when you create a loan.
Within an application, offer, or contract, you can call up all the data for the borrower via the
'Partners' function.
From the partner overview, you can also branch to Treasury business partner management and
display or edit the data in the related screens.
In the business partner overview, you can make the following settings for dunning:
- Which of the loan partners is to pay the dunning charges and interest determined in the dunning run
(flag P - payer for dunning)
- Which of the loan partners is to receive a dunning notice (field D - dunning notice).
You can set defaults for both of these fields in Customizing.

(C) SAP AG AC815 6-58
SAP AG 1999
Reconciliation account
Terms of payment
Interest indicator
Dunning data
Payment methods
Grouping key for payments
Business partner master record: Company code data
Cash management group
Posting to Customer Accounts: Business Partner



If you want to make postings via customer accounts for product types in a specific company code,
you can set default values for creating customer accounts automatically in Customizing for loans.
The system then uses these values when you create a customer master record.

You can do this for example, to ensure that a customer relevant for loans always has a payment
method with individual payment - this is required for disbursement.

In the business partner master record itself, for dunning purposes, you have to specify the following
in the company code data: Dunning area, dunning procedure, dunning level, dunning block, and so
on. You can specify a default dunning procedure for the automatic creation of a customer in
Customizing for loans.

(C) SAP AG AC815 6-59
SAP AG 1999
Contract - Correspondence
Basic data
Basic data
Conditions
Conditions
Collateral
Collateral
Objects
Objects
Correspon-
dence
Correspon-
dence
ManDunnLvl
Dunning per
No dunning
Loan contract
Dunning
Dunning history
D.area D.level Last dunn.
Key date
Generation frequency
Generate upon request
Statement number 0
External acct statement
Interest certificate
Key date
Processing type
Generate int. cert. in annual batch



In the Correspondence data, you can define the dunning procedure to be applied for the specific
loan. Depending on the settings in Customizing, you can make the following specifications:
The No dunning indicator determines whether a loan participates in the dunning run.
The Dunning level field (set manually) is an information field. It is evaluated in drilldown
reporting and is also used for the dunning run. When you are scheduling the dunning run, the
manual dunning level is offered as a selection criterion. This means that all loans with a specific
manual dunning level can be excluded from the dunning run.
The dunning summarization level (Dunning per) specifies whether due items for each contract are
to be dunned individually, or for all contracts in a finance project, or for all contracts of one
borrower together. (Summarization level for calculating the dunning interest and charges in one
total per level, and for creating one dunning notice per level).
If you select the dunning summarization level Finance project, or Customer, the indicator Post
charges appears. If you set this indicator: Dunning charges and interest are posted to this contract
during the dunning run.
The dunning history gives you information on the dunning measures so far and the current
dunning status. Whether or not you can change the dunning history depends on the settings in
Customizing.
You can control the fields for no dunning, manual dunning level, dunning summarization level via
field selection for the status (display, suppress, ...).

(C) SAP AG AC815 6-60
SAP AG 1999
Master Documents
Dunning
proposal
Process
Dunning level
Dunning block
Test print
Process
Dunning level
Dunning block
Test print
Current Current
controls controls
Basic Basic
parameters parameters
Dunning
notices
Dunning
list
- Execution -
- Print -
Loan Loan
selection selection
Dunning Run



All overdue items (according to net due date) are dunned. The dunning level is based on the net due
date, the number of days in arrears, the dunning procedure.
Firstly, you define the parameters for the dunning run. Based on the date of issue, the system selects
the items to be dunned. Which dunning notice is issued depends on:
the dunning procedure in the master record, the number of days the item is in arrears, and the
controls as to how many days in arrears trigger which dunning level.
You can process the dunning process created either completely, (without using the selection options)
or in sections. You can lower the new item dunning level. In addition, you can set or reset a
blocking reason.
The dunning charges and interest determined are debited during the dunning notice printout.
If only loan items are to be dunned in the dunning run, and no items in the customer account that
come from other applications, when you maintain the dunning run parameters, enter "1" in the field
BSID-VERTT in the dynamic selections.
As part of the dunning program, you can select the loan items to be dunned according to specific
loan fields (product type, contract currency, ...). When you are scheduling the dunning run, you can
access the selection screen from the parameter maintenance by selecting Environment --> Treasury
loans. These restrictions from the loan selection are additional and are based on the customer
interval selected as well as on the additional selections.


(C) SAP AG AC815 6-61
SAP AG 1999
-> Financial Accounting -> Accounts Receivable -> Business Transactions ->
Dunning
Dunning levels Min. amounts Dunn. charges Dunning texts
Basic parameters
Company code data Sort fields Sender details
Dunning areas Dunning keys Dunning block reasons
Interest Dunning grouping
Dunning procedure
Customizing: Financial Accounting Dunning




(C) SAP AG AC815 6-62
SAP AG 1999
Number range
Dunning active
Sample recNoRg
01
Internal
Basic settings
No. char.
Company Code Company Code- -Dependent Settings for Product Type Dependent Settings for Product Type
App.fun.
281
282
FTyp
3155
3150
Name
A_Dunning charges debit position
A_Dunning interest debit position
Payt trans. ind.
1
1
Assign Flow Types to Condition Groups for Each Application Assign Flow Types to Condition Groups for Each Application
Customizing: Dunning - Loans (1)



In order to use dunning in Loans Management, you have to activate dunning in the company code for
product types managed via customer accounts.
To post dunning charges and interest, you have to assign the appropriate flow types to the relevant
application functions (per condition group).

(C) SAP AG AC815 6-63
SAP AG 1999
Loans
+
Functions
Dunning
I. Basic Settings
+
_
_
_
III. Exclude Flow Types from Dunning Run
V. Flag Payment Methods for Incoming Payments as
Dunnable
VI. Assign Forms for Loans Dunning to Dunning Level
VII. Define Forms for Legal Dunning Procedure
IV. Assign Dunning Parameters and Limit Amount to
Applic./Role Cat.
II. Define Manual Dunning Level
Customizing: Dunning - Loans (2)



You make loan-specific settings for dunning in Customizing as shown above.
II. Define Manual Dunning Level (selection criteria in the dunning run, can be evaluated in
drilldown reporting).
III. You can exclude individual flow types from the dunning run or the calculation of dunning
interest: - Set flag 1: Customer items with this flow type are not dunned.
- Set flag 2: The system does not calculate interest for open items of this flow type during the
dunning run.
Flow types excluded from the dunning run are not subject to the calculation of dunning interest
either.
Interest may or may not be calculated on flow types included in the dunning run.
V. Payment methods that are flagged for incoming payments in FI are not dunned by the standard
FI dunning program. If dunning is required however, flag the payment methods as dunnable; for
example: Payment method for incoming transfers.
VI. and VII. For dunning in the Loans area, you can assign forms to each dunning procedure for
individual dunning levels.


(C) SAP AG AC815 6-64
SAP AG 1999
Loan contract
Finance project
Main borrower
FP
BO
DS Short text
Summarization level for dunning letterx
Assign role category to application
Fix limit amount for currency
Mortgage loan
Mortgage loan
Mortgage loan
0010
0010
0010
0100
0200
0201
Main borrower
Guarantor
Alternative payer
App. Appl. description RC Name of role cat.
PTyp Text D P
Mortgage loan 30A
DS
I. Basic Settings
VI. Dunning Parameters and Limits
F4
Detail
Basic setting:
Limit dunning level
Default:
Dunning letter
Dunning charges
/interest payer
B
No posting of dunning charges and interest
Smallest contr.no. of dunn. summariztn level
Individual using flag on contract
1
2
Short text
Posting var. for dun. charges/int. fr. dun. run x
2 FP
Customizing: Dunning - Loans (3)



Basic settings
- D: Dunning history can only be displayed (flag set) or changed (flag not set) in the contract
(updated from the dunning run).
- DS: The dunning summarization level determines the level at which open items in a dunning
run are summarized for a dunning letter: One dunning letter per contract/finance project
number/main borrower; default value in contract.
- P: Posting variant specification used to determine the contract to which the dunning charges and
interest from the dunning run are posted when the dunning letter is printed; default value in the
contract. (Note: For posting variant 2 and dunning summarization level finance project or main
borrower, the field Charges posting appears in the contract).
You can define specific dunning parameters and defaults for each application and role category:
Dunning parameters: Alternative settings to the procedure defined for the dunning procedure:
- Dunning level limit: The partner assigned to the loan using this role category only receives a
dunning letter once the dunning level for the letter has reached the dunning level defined here;
- Dunning letter limit: The partner assigned to the loan using this role category only receives a
dunning letter once the total of the items to be dunned for the dunning letter has reached the
total defined here.
Defaults: Type of dunning letter; payer of dunning interest and charges (prerequisite: Business
partner with customer role category).

(C) SAP AG AC815 6-65
SAP AG 1999
Loan 10000000
Flows
0125 Annuity rep. 09/03/YY 09/03/YY 969.73 UNI 000000055
Overdue items
Contract data Correspond. Cash flow Overdue items
M FType Name Due on PostDate Amount Curr. P P M Ref. doc.
1
1
Open Items: Waiver/Write-Off
Verzicht Tilgung
Flow type Text Due on Sett. amount Curr. IP
09/30/YY 969.75 UNI 21
P
3415
2



The waiver clears debit items for goodwill or other reasons at the expense of the loan provider.
This function is not a reversal.
You do not enter a waiver for a debit item directly, instead, you enter it via Overdue items within the
function Open items - Waiver.
The system copies the due date and the amount of the waiver from the items that are being waived.
The open items that you select to be waived are blocked against clearing by other payment
transactions.
You can save the transaction as a planned record or post it immediately. When you post the
transaction, the system posts and generates an actual record.
Write-offs are carried out in the same way.

(C) SAP AG AC815 6-66
SAP AG 1999
Posting log
10/15/YY
CoCde
PK
0001
40
17
Doc. number
Account
1000000000
Charles Brown
Date
10/15/YY
Doc. type
G/L
DZ
204000
Other expense
150100
Repayment receivables
Contract number
Curr.
0000010000000
UNI
UNI
969.75 D
969.75 C
Flow type
3415
Repayment waiver
ContrType
1
Open items: Posting




(C) SAP AG AC815 6-67
SAP AG 1999
App.fun.
202
203
FTyp
3415
3510
Name
A_Repayment waiver
A_Interest write-off
Payt trans. ind.
1
1
Relationship 025 Waiver 026 Write-offs
FTyp
0125
0110
Name
A_Annuity rep.
A_Int.debit position
Name
A_Repayment waiver
A_Interest write-off
RFT
3415
3510
Assign flow types to application function
Assign offsetting flows
025
026
Customizing: Waiver/Write-Off Debit Position



To execute the waiver and write-off functions, you have to make settings in Customizing.
Via the IMG activity Assign Flow Types to Application Function, you define which flow types are
automatically defaulted by the system in the relevant application, for example, 3415 Repayment
waiver, 3510 Interest write-off.

When you define the flow types for waiver/write-off, you use different flow types depending on
whether the waiver/write-off has an effect on the calculation of capital amounts (for example,
repayment waiver) or not (for example, waiver of costs).
Example: Repayment waiver: Flow type SVER; Waiver of interest, costs, and so on: VERZ.
Repayment write-off: Flow type SABS; Write-off of interest, costs, and so on: EABS.
For the calculation type for the waiver or write-off flow type, select the calculation type of the
corresponding type; for example, for flow type 3415 Waiver of annuity repayment, assign the
calculation type of the flow type 0125 Annuity repayment (TTAN).
In addition, enter the reference flow type for the item that is being waived or written off. Maintain
the table based on the company code and a relationship. The relevant relationships here are 025
Waiver, and 026 Write-off.


(C) SAP AG AC815 6-68
SAP AG 1999
Post incoming payments using the manual
account statement
Explain how incoming payments are processed in
the system (correct amounts, amounts that are
too high, amounts that are too low)
You are now able to:
Payments Due: Unit Summary




(C) SAP AG AC815 6-69
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.

1 Carry out the automatic debit position run:
1-1 Simulate the run for your loan first.
- Company code: TRXX ( XX = your group ID)
- Contract number
- The debit position date for the first interest payment and repayment
instalment.
Execute the program and check the posting log.
If there are no errors, carry out the actual debit position run using the same
selection criteria.
1-2 Return to the contract and look at the cash flow. Check the account statement in
the contract and the open items that have been posted to the customer account in
FI. What changes do you observe now that the debit position run has been
carried out?

(C) SAP AG AC815 6-70




Unit: Payments Due



Incoming payments: Manual processing


The interest payment and the repayment have been credited to your bank
account. You now want to enter the incoming payment in the system.

2 Use the manual bank statement to enter incoming payment items:
2-1 Check the default settings on the initial screen:
Internal bank determination
Start variant: DAR01
Further processing as batch input, generation online
Enter the following details to process the manual bank statement:
House bank: DB
Account ID: GIRUN
The statement number and the corresponding statement date
Opening balance: 0
Closing balance: Total of interest and repayment amounts
Posting date
Session names for the bank posting and subledger posting (for example,
BAPO and SLPO)


2-2 Enter the incoming payment item in the account statement.

(C) SAP AG AC815 6-71



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

2-3 Process your batch input sessions (only display errors).
3 Check the account statement in the contract and the open items that have been posted to
the customer account in FI.
What changes can you see now that the incoming payments have been processed?

(C) SAP AG AC815 6-72




Unit: Payments Due



Customizing


You want to check the settings in Customizing.


4 Consider the Customizing settings for the automatic debit position run:

4-1 Which G/L account is assigned to the account assignment reference for your
contract?

4-2 Which flow type is assigned to the automatic debit position run for interest?

4-3 Which account symbols are assigned to the posting record for the automatic
debit position run for interest?

4-4 Which reconciliation account is posted to?



(C) SAP AG AC815 6-73




Unit: Payments Due



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

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


(C) SAP AG AC815 6-74




Unit: Payments Due



Waiving open items


You have already generated open items for the next interest payment and
repayment using the automatic debit position run. At this stage, your
borrower informs you that he or she is not in a position to make the full
payment.

7 Enter a partial waiver for the open items.
Enter the company code and the loan.
Select the overdue items you want to waive.
Post the partial waiver immediately without simulating the posting first.
8 Return to the contract and look at the cash flow. How is the cash flow affected by the
partial waiver?





(C) SAP AG AC815 6-75
Payments Due Solutions



Unit: Payments Due
Topic: Automatic debit position run for interest payments
and repayments
1 Automatic debit position run:
1-1 Execution
Accounting
Treasury
Loans
Accounting
Execute posting: Per contract
Post individual loan

Start the report by selecting Execute, and check the posting log.
To carry out an update run, deactivate the field Test run.
1-2 Contract:
Accounting
Treasury
Loans
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.



(C) SAP AG AC815 6-76




Unit: Payments Due
Topic: Incoming payments: Manual processing

2 Entering incoming payments using the manual bank statement.
2-1 Define the settings and specifications for the manual account statement
via
Accounting
Treasury
Loans
Accounting
Incoming bank statement
Enter manually
Via Settings Specifications, enter the details from the exercise.
Confirm your entries with Enter, and maintain the entry screen in accordance
with the specifications.

(C) SAP AG AC815 6-77

2-2 Confirm the entries in 2-1 with Enter. This takes you to the entry screen
for the manual account statement.
Maintain the account statement as follows:
Transaction type 051
Value date (see planned principle actual record)
Amount
(Customer number)
Contract type 1
Contract number
Save your entries. Post the statement and look at the posting log.
2-3 Process the batch input sessions via
System
Services
Batch input
Sessions
Select and process the session BAPO, selecting process mode Display errors
only. Then select and process session SLPO.
3 Check the cash flow:
Accounting
Treasury
Loans
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.

(C) SAP AG AC815 6-78




Unit: Payments Due
Topic: Customizing

4 You can access Customizing via
Tools
Accelerated SAP
Customizing
Edit project
Goto
SAP Reference IMG

4-1 General ledger account for the account assignment reference:
Treasury
Treasury Management
Loans
Functions
Accounting
General Ledger Update
Define Account Assignment Reference
Solution: G/L account 46020

(C) SAP AG AC815 6-79

4-2 Assignment of flow type:
Treasury
Treasury Management
Loans
Transaction Management
Flow Types
Define Flow Types
Solution: Flow type 0110

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

(C) SAP AG AC815 6-80




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

5 Due date list:
Accounting
Treasury
Loans
Accounting
Execute posting: Mass processing
Preparation
Due date list for planned records
Enter your selection criteria and start the report.
6 Execute debit position run:
Accounting
Treasury
Loans
Accounting
Execute posting: Per contract
Post individual loan



Alternatively, you can post the debit position run from the due date
list by selecting Post.

(C) SAP AG AC815 6-81




Unit: Payments Due
Topic: Waiving open items

7 Entering a waiver:
Accounting
Treasury
Loans
Accounting
Receivables
Waive
Execute
Enter the company code and loan number.


Via Overdue items, you can display the open items
for the contract.
Select the items you want to waive and then via Goto Back,
return to the overview screen.
Select the flow type and Post the waiver without simulating the
posting.

8 Check the cash flow:
Accounting
Treasury
Loans
Transaction Management
Mortgage Loan
Display contract
Select Cash flow.


(C) SAP AG AC815 7-1
SAP AG 1999
Accruals/deferrals
Valuation
Summarization
Information system
Customizing:
- Accruals/deferrals
- Valuation
- Information system
Contents
Closing Operations




(C) SAP AG AC815 7-2
SAP AG 1999
Enter accruals and deferrals for a loan portfolio
and valuate the portfolio for accounting purposes
Use summarization to improve performance
Use the information system
At the conclusion of this unit, you will be able to:
Closing Operation: Unit Objectives




(C) SAP AG AC815 7-3
SAP AG 1999
Loans Management
within SAP Treasury
Rollover
Special cases
Complete process
including master data
Contract currency
changeover
Disbursement
Course overview
Process flow for
loans given
Loan contract
Payments due
Closing operations
Course Overview Diagram




(C) SAP AG AC815 7-4
SAP AG 1999
At the end of the month, you want to create interim
financial statements. In order to do this, you have
to enter accruals and deferrals for the loan
portfolio and valuate the portfolio.
Closing Operations: Business Scenario




(C) SAP AG AC815 7-5
SAP AG 1999
- Create loan
- Business partner
- Conditions
- Correspondence
- Disburse/post loan
- Integration with CM
- Integration with FI
- Post amounts due
- Incoming payment(post)processing
Interested Interested Appl Appl. Offer Contract . Offer Contract Disburse Disburse- - Other Rollover Rollover
party party ment ment activities
- Accrual/deferral
- Valuation
- Summarization
- Information system
Transaction Management Portfolio/Accounting
Mortgage Loans - Processing Seq./Contract




(C) SAP AG AC815 7-6
SAP AG 1999
Accruals/deferrals:
- Reset procedure (for interest, discount)
- Difference procedure (for discount)
Reversing accruals/deferrals
Resetting accruals/deferrals
(for reset procedure)
Accruals/Deferrals: Overview



You calculate accruals and deferrals in order to assign income and expenditure to the correct period
in accordance with accounting principles.
The accruals/deferrals procedure describes how the expense and revenue accounts are updated.
The accruals and deferrals are based on the relevant movements of the business operations selected
up to the key date. For each movement, the accrual/deferral amount is determined and appropriate
movements are created.
You can execute the accruals/deferrals run as a test run (accruals/deferrals log), or you can post the
accruals/deferrals immediately (accruals/deferrals log and posting log).
If you carry out accruals/deferrals using the reset procedure, you then carry out the corresponding
reset of the accruals/deferrals separately using the function Reset accruals/deferrals.
You can reverse accruals that have been posted or reset via the function Reverse accruals/deferrals.
If you have posted an accrual/deferral and a reset, you have to reverse the reset before you can
reverse the accrual/deferral.
If you want to reverse several discount accrual/deferrals, you do this in reverse chronological order.


(C) SAP AG AC815 7-7
SAP AG 1999
Reset procedure
(R/3 Loans Management:
for interest, discount)
Difference procedure
(R/3 Loans Management:
for discount)
Linear (time-based)
Interest-based
Financial mathematical*
Accrual/deferral
procedures
Accrual/deferral
methods
* Not for the Loans area
Accruals/Deferrals: Procedures/Methods



The accruals/deferrals procedure describes how the expense and revenue accounts are updated.
Using the reset procedure, the relevant time-based portion is posted on the key date, and then reset,
usually on the next working day.
If however, you use the difference procedure, the proportion that is posted is not reset. The next time
you execute the accruals/deferrals run, only the difference amount is posted.
The accruals/deferrals methods define how the accruals/deferrals amounts are determined.
The linear calculation is carried out on a time basis.
The interest-based calculation, which is supported for discounts, calculates the discount amount for
which an accrual/deferral is to be posted in proportion to the interest amount that is due for the
accruals/deferrals period in relation to the total of the remaining interest. The financial mathematical
method is not supported for the loans area.

(C) SAP AG AC815 7-8
SAP AG 1999
Accruals/deferrals for closing operations
01.11
Payment day
for interest1200 UNI
31.12
Accruals/deferrals
key date
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
02.01
Reset
01/02: Accrual/deferral of 800 UNI is reset
Accruals/Deferrals: Reset Procedure



The above is an example of a deferred interest payment.
A deferral must be calculated for this amount as part of the closing operations for the financial
statements.

11/01: Flow type 0110: Debit position: Bank clearing to interest revenue 1200 UNI
Incoming payment: Bank to bank clearing 1200 UNI

12/31: Flow type 8304:
Deferral: Interest revenue to deferrals 800 UNI

01/02: Flow type 8323:
Reset deferral: Deferral to interest revenue 800 UNI

04/31:

(C) SAP AG AC815 7-9
SAP AG 1999
Company code
Product type
Loan
.
Discount/premium acc./def.
Other accruals/deferrals
Accrual/deferral key date
Test run
0001
30A
10000001
To
To
To
12/31/YY
x
Accruals/Deferrals: Execute




(C) SAP AG AC815 7-10
SAP AG 1999
Linear
8301
0001
1
Company code
Flow type
Acc./defer. method
0110 A_Interest debit position
Reset procedure
8321
8304
8323
Accrual
Accrual reset
Deferral
Deferral reset
A_Accr.: Other rec. to revenue
A_Accr.: Revenue to other rec.
A_Def.: Revenue to def. income
A_Def. reset: Def. inc. to rev.
Difference procedure
-> Check account determination
Customizing: Accruals/Deferrals I



You maintain the flow types that are to be considered in an accruals/deferrals run in a special table.
You have to define the method and the procedure for every flow type for which accruals/deferrals are
to be created. For the procedures, specify the corresponding accruals/deferrals flow types that are to
be posted. You have to make the settings in the account determination for all flow types.

Example: 0110 Interest: Bank clearing to interest received
8301 Accrual: Receivable to interest revenue
8321 Accrual reset: Interest revenue to receivable

(C) SAP AG AC815 7-11
SAP AG 1999
0001
Company code
Flow type 0165 A_Discount debit position
Interest basis for flow type
Interest Name
0110 A_Interest debit position
Customizing: Accruals/Deferrals II



If you want to create an accrual/deferral for a discount in proportion to the interest, you must also
define the interest amounts that the calculation is to be based on (which condition type).
The interest-based calculation, which is supported for discounts, calculates the discount amount for
which an accrual/deferral is to be created in proportion to the interest amount.
Base calculation: Numerator/denominator.
Numerator: Total interest (from disbursement date or last selection date to current date)
Denominator: (From disbursement date or last selection date to "Fixed to" date in condition header)


(C) SAP AG AC815 7-12
SAP AG 1999
Maintain exchange rates
Valuation log
Posting log
Foreign currency
loans
Balance sheet
valuation
Valuation: Balance Sheet Valuation



You have to valuate foreign currency loans for the (monthly, annual) closing operations. You can
valuate loan portfolios at any key date. This key date valuation is the accounting valuation of the
portfolio at a specific key date using the exchange rate valid at the key date.
The R/3 functions are not however fully available for foreign currency loans based on customer
accounts. The following functions are available:
- Reversal of incoming payments
- Partial payments
- Automatic clearing of overpayments
- Disbursement with withholding
- Waiver

For more information, see: Note 75103
You set the valuation parameters in Customizing.


(C) SAP AG AC815 7-13
SAP AG 1999
Product type
Contract currency
...
To
To
To
...
...
...
Selections
Company code
Contract number
To
To
Parameters for foreign curr. valuation
Key date
Valuation principle
Rate calculation
Simulation/test
Reset valuation
Balance Sheet Valuation: Initial Screen



You select the loans that are subject to a balance sheet valuation for accounting purposes via the
selection criteria.
The following parameters are available:
- Key date: Date for which the balance sheet is created and the exchange rate is used.
- Valuation principle: This principle is defined in Customizing and determines whether, when a
difference arises between the exchange rate book price and the valuation price, a write-off or a
write-up should, or may, be carried out.
- Rate calculation indicator: Defines which exchange rate type is used, for example, M for
middle rate.
- You can execute the valuation as a simulation, test, or update run: If you simulate the run, a
valuation list is output. If you execute a test run, the account determination is checked, and in
addition to the valuation list, the (test) posting log is also displayed. An update run carries out
the relevant postings and updates Financial Accounting.
- If you select the Reset valuation indicator, the valuation postings are automatically reset on the
following day (key date + 1). This function is useful if you want to carry out an interim
valuation for information purposes.

(C) SAP AG AC815 7-14
SAP AG 1999
Posting log
40 280010 UNI 7,000.00 D
Write-off fin. asset
50 46020 UNI 7,000.00 C
Other loans
TR00 1000006 30A
USD 100,000 150,000.00 1.50000
140,000.00 1.40000
147,000.00 1.47000
7,000.00- 140,000.00 1.40000
CoCd Loan number
Currency Rem. capital Acquisition value Acquis. rate
Exch. rate date Curr. value Curr. price
Old book value
Old book price
Valuation gain/loss New book value New book price
Valuation log
Balance Sheet Valuation: Logs




(C) SAP AG AC815 7-15
SAP AG 1999
Valuation principle
Valuation method Valuation rules
1 1
One-step Two-step
2 2 3 3
- 0 Zero - 0 Zero
- 2 To key date value - 2 To acquis. value
- 4 To key date value
Valuation loss Valuation gain
Valuation: Defining Principles



You define one valuation method and selected valuation rules for every valuation principle.
The valuation methods are defined by the system.

Two-step methods are required for the balance sheet valuation of securities, since this means that
you can deal with a security price and an exchange rate separately.

The one-step method is relevant for the loans area.


(C) SAP AG AC815 7-16
SAP AG 1999
0 No valuation loss
1 (Currently not supported)
2 Valuation loss up to key date value
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
Valuation loss
Valuation gain
Valuation: Write-Off/Write-Up Options



You define the valuation rules specified in the valuation principle by selecting the "write-off and
write-up options" relevant for this principle.
For a loan given, a reduction in the balance sheet value due to a revaluation (write-off) represents an
exchange rate loss; for a loan taken however, this represents an exchange rate gain.
For a loan given, an increase in the balance sheet value due to a revaluation (write-up) represents an
exchange rate gain; for a loan taken however, this represents an exchange rate loss.


(C) SAP AG AC815 7-17
SAP AG 1999
Valuation principle
Name of valuation principle
Valuation method 1
Valuation loss
Valuation gain
Strict lowest value principle
101
2
0
Valuation loss up to key date value
No valuation gain
Valuation: Example of the One-Step Principle



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


(C) SAP AG AC815 7-18
SAP AG 1999
Problem: Performance
(in the form of total carryforward records in a table)
Cumulation of condition-based,
regular accounting documents for each flow type
in the form of carryforward records
Solution: Document data summarization
Summarization/Reorganization: Overview



Initial situation: Performance problems for runtime-intensive applications as a result of a high
portfolio volume, longer runtimes, and large amounts of documents.
Critical points (technical view):
Quantity of documents to be read from the database
Quantity of documents to be processed by the application
Currently, not the quantity of documents on the database!
Solution: Document data summarization in the form of total carryforward records in a table.
On a key date, a summarization function writes carryforward or totals records from documents
posted to a table for each loan.
Example: Total of previous repayments.
Applications that read documents and process them further can access the carryforward records
generated. If there are no valid carryforward records, the original documents are read.
Applications that carry out changes in summarized periods (for example, reversal) flag the
summarization as invalid.

(C) SAP AG AC815 7-19
SAP AG 1999
x
x
x
x
x
Documents Documents
Carryforwards
Carryforward
records (III)
Carryforward
records (I)
Today
3 months 3 years
System performance optimization
System performance optimization and subsequent archiving (future releases)
Management data
Original documents in the
system
Original documents
archived
Time
Archiving Summarization
Original
documents
Summarization: Carryforward Records



The summarized documents are flagged, the summarization records are available as "carryforward".
The information about the summarization (when the summarization was carried out, and so on) is
retained as management data.
The following applications can work with summarized data:
- Update planned records
- 'Loans to partner' overview (calculation of capital amounts)
- Time-based accruals/deferrals
- Planned: Successive integration in additional applications
For the summarization, you should select a period that lies approximately 3 - 5 months in the past.
This reduces the probability that subsequent business transactions have to access the summarized
period.


(C) SAP AG AC815 7-20
SAP AG 1999
Company code
Contract number
Call type
Carry out summarization
Invalidate summarized records
Delete summarized records
Display information
Summarization: Call Types



The following call types are available:
- Carry out summarization
- Invalidate summarized records: The summarization of the loans selected is flagged as invalid.
The summarization records remain on the database.
Example: If, after the summarization has been carried out, you make a posting that falls within
the summarization period, the summarization records are no longer up to date; they are
automatically invalidated by the application.
- Delete summarized records: The summarized records are deleted from the database.

- Display information.
Due to the long runtime for the summarization, and problems with blocks, you should carry out the
summarization in the background.

(C) SAP AG AC815 7-21
SAP AG 1999
Reporting
Standard Drilldown
reports reports
Standard Drilldown
reports reports
Application-specific TR information system
Information System: Overview



Standard reports are reports delivered by SAP and you cannot usually change them.
Drilldown reports are reports that you can configure to meet your requirements.
Example reports are delivered by SAP.

(C) SAP AG AC815 7-22
SAP AG 1999
Loans Management
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
Information System: Loans




(C) SAP AG AC815 7-23
SAP AG 1999
B
u
s
i
n
e
s
s

p
a
r
t
n
e
r
Brown
Miller
Fisher
Report list
Currency
CHF
USD
DEM
Product type
Policy loans
Mortgage loans Borrower's
note
Drilldown Reporting Principle





(C) SAP AG AC815 7-24
SAP AG 1999
Free navigation at all levels (characteristics)
Exception reporting provides a visual warning when critical
values deviate from 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
Drilldown Reporting Functions




(C) SAP AG AC815 7-25
SAP AG 1999
Drilldown reporting structure
P
a
r
t
n
e
r
Product type Borrowing/sale
1
Product type
2
P
a
r
t
n
e
r
Currency
Product type
Currency
Company code
Trader
Product type
Portfolio
Securities account
x
Partner
Financial transaction
Currency
Acct assignment ref.
x
x
Investment/purchase x
P
a
r
t
n
e
r
Currency
Money market Money market
Foreign Foreign
exchange exchange
Derivatives Derivatives
Securities Securities
Loans Loans
3
P
a
r
t
n
e
r
Product type
Currency
Multidimensional Dynamic Drilldown Reporting



Within drilldown reporting, you have various options for navigation:
Drilldown - this enables you to navigate through drilldown reporting levels and change the sequence
of characteristics in the search strategy.
Change drilldown - this allows you to replace one characteristic with another.
Deactivate characteristics - you can calculate totals for all the values of one characteristic.
Sort characteristics - to change the search strategy, that is, the sequence for navigation
through the characteristics.
Initial list - this allows you to display the original list.
Detail list - enables you to branch to the details of a selected characteristic value.
Hierarchy - this displays the list as a hierarchy.


(C) SAP AG AC815 7-26
SAP AG 1999
Key figures Key figures Charact. Charact.
Save
Lists
Graphics
Navigation/
drilldown
Save
Batch Batch
list list
Create
Change Change
Execute
Drilldown report Drilldown report
... Mail Excel Winword
Forms Forms
Forms Forms
Report Report
directory directory
Drilldown Reporting Architecture



You can enter characteristics, key figures, and forms in the definition of reports. The result of a
report is several interactive lists that you can display on the screen. You can also print the reports,
export them to Word or Excel, or store them in a file.
The form describes the content and structure of the reports. You can use it as the basis for a report
that is then completed during report definition. You can also create ad hoc reports without using a
form.
Characteristics reflect the classification options for the dataset, for example, company code, business
partner, product type.
You can include the characteristics in the form as well as in the report.
Key figures are not just amounts and quantities; you can use a key figure transaction to define
additional key figures from existing ones (key figure tree). Example: Assets = Investment/purchase -
Borrowing/sale
You can select the key figures in the form or in the report.

(C) SAP AG AC815 7-27
SAP AG 1999
Enter accruals and deferrals for a loan portfolio
and valuate the portfolio for accounting purposes
Use summarization to improve performance
Use the information system
You are now able to:
Closing Operations: Unit Summary




(C) SAP AG AC815 8-1
SAP AG 1999
Changing the cash flow
Business transactions:
- Entering charges individually
- Entering charges as business operations
- Unscheduled repayments
- Posting individual records
Balance sheet transfer
Capital transfer
Reversal
Customizing
Contents
Special Cases




(C) SAP AG AC815 8-2
SAP AG 1999
Enter unscheduled or additional operations
Examples:
- Unscheduled repayments
- Additional charges
At the conclusion of this unit, you will be able to:
Special Cases: Unit Objectives




(C) SAP AG AC815 8-3
SAP AG 1999
Loans management
within SAP Treasury
Rollover
Special Cases
Complete process
including master data
Contract currency
changeover
Disbursement
Course overview
Process flow for
loans given
Loan contract
Payments due
Closing operations
Course Overview Diagram




(C) SAP AG AC815 8-4
SAP AG 1999
You want to issue a customer with an invoice for
additional charges.
Another customer makes an unscheduled
repayment.
Special Cases: Business Scenario




(C) SAP AG AC815 8-5
SAP AG 1999
- Create loan
- Business partner
- Conditions
- Correspondence
- Disburse/post loan
- Integration with CM
- Integration with FI
- Post amounts due
- Incoming payment (post)processing
Interested Interested Appl Appl. Offer Contract . Offer Contract Disburse Disburse- - Other Rollover Rollover
party party ment ment activities
- Accrual/deferral
- Valuation
- Summarization
- Information system
- Special cases
Transaction management Portfolio/Accounting
Mortgage Loans - Processing Seq./Contract




(C) SAP AG AC815 8-6
SAP AG 1999
Calculate cash flow
Calculate cash 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
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
Name
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
FTyp
0001
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120
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
Basic data
Basic data
Conditions
Conditions
Collateral
Collateral
Objects
Objects
Correspond.
Correspond.
Loans - Cash Flow



Flow types explain the different changes in the cash flows. Together, all the transaction flows form
the basis for the financial mathematical generation of the cash flow and further processing, for
example, posting. The cash flow contains all the flow records in chronological order, and is used to
update the transaction data in Financial Accounting, Cash Management, and Market Risk
Management.
Typical flow types are, for example, fixed or variable interest, repayments, or commission.
The cash flow display is linked to the ABAP List Viewer.


(C) SAP AG AC815 8-7
SAP AG 1999
Changing condition-based flows using the cash flow
Prerequisites:
You have posted a disbursement (complete or partial disbursement)
Conditions can be changed
(this is not the case, for example, if there is a planned disbursement)
Changeable flows:
Only condition-based flows
Only planned flows for the current fixed interest period
No capital reductions or increases
No final repayments
Cash Flow: Manual Changes



In some cases, it is useful to be able to change a planned record quickly and easily, mainly for loans
taken.
Changeable data:
Due date
Payment date
Clearing date for alternative clearing
Amount
Payer data/payment details:

- Partner

- Partner bank type

- Payment method

- Dunning area

- Dunning block

(C) SAP AG AC815 8-8
SAP AG 1999
Change contract --> Cash flow
--> Select flow record --> Extras --> Change flow
Manual changes to flows in the cash flow
12/31/YY 12/31/YY 5,000.00 0120 A_Inst. rep.
Due date Payment date Amount
FlowType Text
Icon for changing
Icon for fixing
Cash Flow: Executing Changes



You can change flows manually. If you want these changes to be considered when you recalculate
the cash flow, you have to fix the changes.
If you fix the due date/payment date, a calendar icon appears.
If you fix all data for this flow, a lock icon appears.

(C) SAP AG AC815 8-9
SAP AG 1999
Calculate cash flow
Calculate cash 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
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
Name
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
P
FTyp
0001
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120
0110
0120
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
Basic view
Due date view
Calculation view
Posting view
View for manual changes
......
Loans - Cash Flow: Display Variants



The cash flow display is linked to the ABAP List Viewer.
You can use the display variants to focus on different information. There is a predefined view, for
example, for manual changes.
The cash flow is recalculated based on the fixed changes. Should the changes result in new annuity
or instalment amounts, or a reduction in the term, these flows must be calculated separately to take
effect.

(C) SAP AG AC815 8-10
SAP AG 1999
What is a business operation?
A loan transaction that is the source of one or
more flow records
(for example, unscheduled repayment, charges)
Flow records are not posted using the automatic
debit position run, they must be triggered explicitly
for this operation
Business Operations for Contracts



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

(C) SAP AG AC815 8-11
SAP AG 1999
Reversed
Deleted
Calculated as a
simulated
record in the
cash flow
Saved as a planned
record on the
database
Saved as an actual
record on the
database
Operation status:
Activate (release where necessary,
if the release procedure is activated)
Delete
Change
Delete
Reverse
Post
Entered/
saved
Activated
Posted
Business Operation: Process



A business operation can pass through three statuses, that is, it is first entered, then activated, and
then posted. You can also enter a business operation and post it immediately.
Business operations that you enter are included as simulated records when you simulate the cash
flow (as part of the business operation processing). If you delete the business operation, the history
cannot be traced.
When you activate a business operation, the system writes the flows to the database as planned
records. The flow records are fixed and can no longer be changed. If you delete a business operation
that has been activated, its history can be traced.
You cannot delete posted business operations, but you can reverse them.
If the release procedure is activated, business operations must be released between the statuses
entered and activated. In other words, if a business operation has entered status, it must be activated
before it appears in the Business Workplace Inbox for release. After the release, the business
operation has activated status. Activated status is a prerequisite for further processing.

(C) SAP AG AC815 8-12
SAP AG 1999
Disbursement ( )
Entering charges individually
- Entering one or more business operations
- Each business operation consists of exactly one flow record
- Each business operation can be activated, posted, or reversed separately
Business operation charges Unsch. rep.
- Entering one or more business operations
- Each business operation consists of exactly one flow record
- Each business operation can be activated, posted, or reversed separately;
this affects all flows for a business operation
Types of Business Operations



From each initial screen, you can enter one or more business operations.
You use the functions Unscheduled repayment and Enter business charges in business operations to
enter complex business operations. These complex business operations can also contain derived
flows (for example, exchange rate profit, accruals/deferrals records), or incidental costs.

The Disbursement function is also a business operation.
However, because it is so complex, it is treated as an independent function in the system. It is
therefore not covered by the business operation processing logic, and can only be called up from
business operations.
The flows created in the business operation are posted using the business operation function.
Flows that were entered using the Enter charges individually function can also be posted via the Post
individual records function.



(C) SAP AG AC815 8-13
SAP AG 1999
CoCd Loan
BO status Name First entered Entered on
Entered Special charges Harry Smith DD.MM.YYYY
Activated Posting charges Harry Smith DD.MM.YYYY
Flows for business operation
Activate Post Create Detail
FTyp Amount Curr. Payt date Name PT PC
3145 100 UNI DD.MM.YY Special charges x 21
3146 50 UNI DD.MM.YY Extra charges x 21
3147 10 UNI DD.MM.YY Process. charges x 21
10000006
0001
Business Operation Charges: Example



All business operations for the contract and this business operation type are listed in the business
operation overview.
You determine the flows permitted for each business operation in Customizing.
The key 21, Manual debit position, is automatically entered in the posting control field.
Whether or not the Payment transaction flag is set is determined from the Customizing settings.

(C) SAP AG AC815 8-14
SAP AG 1999
1. Maintain number ranges for business operations
2. Assign flow types to condition groups for each application:
- Application 101: Unscheduled repayment
- Application 102: Entering charges as business operations
- Application 103: Entering charges individually
3. Business operations
- Define company-code specific texts
- Default values for flow types
- Define parameters
(whether an unscheduled repayment should cause a reduction
in terms or instalments)
Business Operation: Customizing



Every business operation has its own number in the system.

For each condition group, the following is assigned for each application function:

- The flow types permitted for business operations
- Whether these flow types are posted via customer accounts (payment transaction: Yes) or not.
SAP recommends excluding the flow types with calculation type NOOP (no operation); an
exception to this would be the flows for the business operation Unscheduled repayment.

You can make the following settings for business operations:

- In each company code, a specific posting text is transferred for a specific application function
during posting.
- In a company code, default values for the dunning block and for a payment method are used for
a specific product type when you enter a specific flow type.
- In the business operation Unscheduled repayment, the loan term is reduced or the instalments
are reduced, or there is no effect on term/instalments in a company code for a specific product
type. If the term is reduced, the end of term and, where necessary, the fixed period end, are
adjusted automatically; if the instalments are reduced, a new condition item is added
automatically with the new instalment, and the next valid from date is determined in accordance
with the condition data (frequency, calculation date, and so on) in combination with the
calculation date of the unscheduled repayment.
If an activated or posted unscheduled repayment is reset, the instalment or term reduction is
corrected manually.

(C) SAP AG AC815 8-15
SAP AG 1999
Business operation
Entering charges
individually
Condition-based planned
records
(with posting control
"manual debit position")
Post individual records
Initial screen: Company code, loan number, due date from ... , to ...
Due on Flow type Amount Currency
x
x
10.MM.YY 3145 120 UNI
10.MM.YY 3146 300 UNI
30.MM.YY 0110 2,530.50 UNI
Post
Posting Individual Records



Using Post individual records, you can post the flows that were entered (and activated) using the
business operation Entering charges individually, as well as condition-based planned records where
the posting control "manual debit position" was defined in the condition detail.

(C) SAP AG AC815 8-16
SAP AG 1999
Balance sheet: Acct 2
Balance sheet: Acct 1
Capital position 1
Capital position 2
Capital position n
Capital position x
Capital position 1
Capital position a
Capital position b
Capital position y
Balance sheet Balance sheet
transfer transfer
Capital transfer: Capital transfer:
Grouping Grouping
Capital transfer: Capital transfer:
Contract split Contract split
Transfer Postings: Overview



You can use a balance sheet transfer posting to transfer loan or contract balances between G/L
accounts in Financial Accounting. In this case, the transfer posting only affects the Financial
Accounting general ledger.
A capital transfer transfers balances between different contracts.
This means that the loans subledger is affected as well as the Financial Accounting general ledger.

Grouping contracts usually involves transferring capital amounts from several contracts to one target
contract. Splitting a contract usually involves transferring the capital amounts from one contract to
several contracts.

(C) SAP AG AC815 8-17
SAP AG 1999
Acct assgt ref. X: Balance sheet account 46000
Contract
data:
xxx
Automatic
determination
Change contract
Contract
data:
yyy
Acct assgt reference Y:
Balance sheet account 46020
Automatic
determination
Preselection for
balance sheet transfer
Execute balance sheet transfer
46020 46000
10,000
PO 10,000 PO 10,000
Balance Sheet Transfer



The balance sheet account that the loan balance is posted to is taken from the account assignment
reference. This is determined automatically based on the loan data entered, and in accordance with
the rules defined for the automatic determination of the account assignment reference in
Customizing.
If you change data in the contract and this results in a different account assignment reference (in
accordance with rules defined in Customizing),

1. For contracts that have not been posted (no disbursement has been posted):
- The account assignment reference entry in the contract is changed.
2. For contracts that have been posted:
- The account assignment reference entry in the contract is changed.
- Preselection for the balance sheet transfer is carried out, irrespective of whether the balance
sheet accounts of both account assignment references are different or not.

The balance sheet transfer is then triggered separately in an additional activity. The balance of the
old balance sheet account on the key date is determined from the actual records and transferred to the
new balance sheet account via the interim account.
In the transfer posting report, the flag Delete transfer posting preselection if account assignment
reference is not changed has the effect that for contracts that are not affected, the preselection is
deleted from the database. This can be the case for example, if loan data has been changed several
times such that this does not lead to a change in the account assignment reference (and the previous
preselections were not posted).

(C) SAP AG AC815 8-18
SAP AG 1999
Target loan (or source loan) information
Control parameters
Capital amounts
Transfer date
Flow type
Source loan inclusive
Target loan inclusive
Company code
Target (or source) loan
...
Source loan
(or target loan)
Transfer amount
Distribute cash receipts
Disc./prem. def. not to revenue
Capital Transfer: Grouping and Splitting Contracts



By selecting either Source loan inclusive, or Target loan inclusive, you define whether the transfer
date for the interest calculation is taken from the source loan or the target loan.
The following prerequisites must be fulfilled for capital transfers:
- The source loan to be transferred has been disbursed (either partially or completely).
- For the source loan, the remaining debt (available capital = remaining capital minus
extraordinary, saved additions and withdrawals) must be at least as high as the amount to be
transferred.
- The disbursement obligation of the target loan is greater than or equal to the amount to be
transferred.
- All contracts have the same contract currency and the same product type.
- There are no postings after the transfer key date that are relevant for the cash flow and not based
on conditions (for example: Posted partial disbursements, posted unscheduled repayments). If
such postings exist, you should reverse them manually.
- There are no balance sheet transfers after the key date.
Items after the key date:
- Posted debit positions: These are automatically reversed, recalculated, and reposted.
- Accrual/deferral postings: Automatically reversed, recalculated, and reposted.
- Incoming payments: Automatically reversed and posted as overpayments; depending on the
selection (flag), the overpayment is distributed in proportion to capital; the overpayments can
then be cleared automatically.
- Discount: Cleared automatically and distributed in proportion to capital depending on the
selection (flag).

(C) SAP AG AC815 8-19
SAP AG 1999
Other posting
Capital transfer posting
Incoming payments
Debit position
Disbursement
Reversing individual
operations
Deferred interest
Reset
Accrued/deferred discount
Reversing accruals/
deferrals
Processing returned
debit memos
Reversal



If you reverse a document in Loans Management, the document in Financial Accounting is reversed
automatically.
Reversals (like normal postings) should always be triggered from Loans Management; integration
automatically transfers the information relevant for posting to Financial Accounting (FI).
You can reverse accruals that have been posted or reset via the function Reverse accruals/deferrals.
If you have posted an accrual/deferral and a reset, you have to reverse the reset before you can
reverse the accrual/deferral.
If you want to reverse several discount accrual/deferrals, you do this in reverse chronological order.

You can use the "Processing returned debit memos" report to post debits arising as a result of
returned debit memos, as long as the returns are not processed via the electronic bank statement. The
report posts the amount collected and charges to the customer account and the bank clearing account.
The incoming payment is thereby reversed and a new open item is created in the amount of the
original debit position. This item automatically receives a payment block. This means that this open
item cannot be collected again in FI by the payment program; the open item is then processed further
in accounting for Loans (manually or automatically).
(Customizing: See II)

(C) SAP AG AC815 8-20
SAP AG 1999
The system displays all items* from the operations selected in the specified period
(* reversible items with selection checkbox; items that cannot be reversed can only be
displayed)
Selection of records to be reversed
Specify Treasury reversal reason
Post reversal
Reversal categories or groups:
Disbursement/debit position/incoming payment/capital transfer/other posting
Selection
Reversal posting: Update run or simulation
Reversing Individual Operations



You can reverse all posted operations (actual records) via the Reverse individual operations function
as long as this does not affect the cash flow. If the cash flow is affected, reverse the operations
affected first.
Examples:
- Reversing an actual record (I1, interest debit position), for which there are further actual records
(I2, I3 both interest debit positions). Before you can reverse I1, you have to reverse I3 and I2 in
reverse chronological order.
- Reversing an actual record (I, interest debit position), that is followed by later non-condition
based planned records (P), for example, a saved disbursement. Before you can reverse I, you
have to delete the future planned record P.

(C) SAP AG AC815 8-21
SAP AG 1999
I. Define Treasury reversal reasons
RRe Long name PmntBlType
01 Processing error 3
02 Other reasons 3
1 Payment block for disbursement clearing
2 Payment block for IP postprocessing
3 No payment block
F4
Reversal: General Customizing I



The Treasury-specific reversal reasons are used for information purposes for evaluations in the
Loans subledger. They are only relevant for reversing individual operations. Here, you can also
define whether for Loans Management, payment blocks should be set for items generated from the
reversal (if so, which payment blocks):

The payment block for disbursement clearing is the one that is defined as the "Open item payment
block" in the company code-specific data for the product type. Setting this payment block has the
effect that a credit arising from a reversal is not assigned to the customer, that is, processing is
integrated in the payment program; you can only carry out manual postprocessing in Treasury.
Example: Debit position 500 UNI. OI clearing via incoming payment 500 UNI. Conclusion:
Incorrect amount, only 450 UNI. Procedure: Reverse debit position 500 UNI; the incoming
payment is reversed automatically and posted as an overpayment; the payment block is set
automatically for this overpayment; new debit position 450 UNI; manual incoming payment
postprocessing: Clear the debit position with the 450 UNI overpayment; refund the remaining 50
UNI.
The payment block for incoming payment postprocessing is the one that is defined as the "IP
payment block" in the company code-specific data for the product type. This block only applies
for the manual posting of returned debit memos. It has the effect that the incoming payment is
reversed by the returns posting, and also the new open item that was generated, are not collected
again. The payment block prevents the OIs being taken into account in the payment program;
postprocessing (automatic or manual) is only possible in Treasury.
No payment block is set for the receivables that were reopened by the reversal of the incoming
payments that came from the clearing of advance payments or overpayments.


(C) SAP AG AC815 8-22
SAP AG 1999
II. Define flow types for reversing incoming/outgoing payments
1. Define flow types as for 4596 (A_Reverse incoming payment)
or 4597 (A_Reverse outgoing payment)
2. Define account determination
(automatic clearing to reversal account or reversal account to automatic clearing)
3. Assign flow types to incoming payment processing type (14 or 15)
Reversal: General Customizing I



As a result of various changes to the reversal function (since Release 4.5), for technical reasons, two
flow types are required for reversing incoming payments/outgoing payments (see Customizing
example above).
For the postings from the report "Processing returned debit memos", you have to define a flow type
such as flow type 4595 (sample Customizing), assign it to processing type "13 Transfer returned
debit memo", and then make the settings for the account determination (reversal account to
automatic clearing).

(C) SAP AG AC815 8-23
SAP AG 1999
Assign activity category for reversal transaction grouping
PTyp Text Activity cat. Rev. group
1 Disbursement
2 Debit position
3 Incoming payments
4 Capital transfer
5 Other posting
F4
...
0003 Write-down: Credit
0004 Write-down: Debit
0009 Disbursement: Credit
F4
30A A_Mortgage given 0003 5
30A A_Mortgage given 0009 1
Reversal: Customizing for Individual Operations



The assignment of (flow type) activity categories to reversal groups (= reversal categories) defines
which documents (corresponding posted flow type) are displayed for which group; the documents
displayed that can be reversed are listed with a checkbox, and can be selected for the reversal
posting.
Reversal group 5 is used for other postings such as write-offs or waivers.

You can also assign activity categories such as accruals/deferrals here, but you cannot reverse the
accrual/deferral via the individual operations - it has to be reversed separately. If you make an
assignment here, when you select Other posting in the application, the accruals/deferrals documents
for example, are also displayed. They are however, only displayed - they cannot be selected. This
can be helpful for information purposes.
(Exception: Documents from the contract currency changeover are never displayed in these reversal
functions).

(C) SAP AG AC815 8-24
SAP AG 1999
Enter unscheduled or additional operations
Examples:
- Unscheduled repayments
- Additional charges
You are now able to:
Special Cases: Unit Objectives




(C) SAP AG AC815 8-25
Special Cases Exercises



Unit: Special Cases


Business operations for contracts - unscheduled repayments


The borrower makes an unscheduled loan repayment and you want to
enter this correctly in the system.

1 Your borrower has made a payment of 10,000 UNI earlier than scheduled.
Create an unscheduled repayment for your company code. (Term will be shortened).
You want to post this amount immediately!
Look at the posting log.
2 Note the changes that arise as a result of the unscheduled repayment:
2-1 Changes in the cash flow for the contract; also check the account
statement.
2-2 Changes to the open items posted to the customer account in FI.
3 What effect would an unscheduled repayment with "No effect" have had in
comparison to a reduction in the term?


(C) SAP AG AC815 8-26




Unit: Special Cases



Reversing business operations - unscheduled repayments


You have made a mistake while entering an unscheduled repayment from
your borrower. You therefore need to reverse this item and post it
correctly.

4 Reverse the unscheduled repayment that has been posted for your contract:
4-1 Display the corresponding document.
Enter the reason for the reversal.
Post the reversal immediately.

4-2 Once the reversal posting has been made, check the account statement.
5 Look at the effects in the cash flow and adjust the term again. How is the cash
flow affected by the reversal of the unscheduled repayment?




(C) SAP AG AC815 8-27
Special cases Solutions



Unit: Special Cases
Topic: Business operations for contracts - unscheduled
repayments
1 Enter an unscheduled repayment:
Accounting
Treasury
Loans
Position Management
Business operations for contracts
Unscheduled repayment
Enter the company code and loan number, and select Change.
Select Create unscheduled repayment. Select the effect Term will be shortened, and
enter a name. Select flow type 0135 for debit position repayments, and maintain the
date fields.


Information about the reduction in maturity appears.
Confirm the warning Posting is in the future with Enter.
Post the unscheduled repayment.



Confirm the warning Posting is in the future with Enter.


(C) SAP AG AC815 8-28

2-1 Check the cash flow and the account statement:
Accounting
Treasury
Loans
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.




(C) SAP AG AC815 8-29




Unit: Special Cases
Topic: Reversing business operations - unscheduled
repayments
4 Reverse the unscheduled repayment as follows:
Accounting
Treasury
Loans
Accounting
Reversal
Reverse individual activity
Enter the company code and loan number.


- Check the posting period and then select Debit position.
- Select the document for the unscheduled repayment and then
Post
the reversal.
- Enter the reversal reason 01 Processing error
and then carry out the posting.
- Check the Account statement.
5 Check the cash flow/adjust the term:
Accounting
Treasury
Loans
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.




(C) SAP AG AC815 9-1
SAP AG 1999
Changing contracts
Rollover
Process management
Customizing:
- Rollover
- Process management
Contents
Rollover




(C) SAP AG AC815 9-2
SAP AG 1999
Process rollover contracts when the condition
terms have expired - using individual processing
and mass processing
Use process management for random selection of
contracts as well as for mass correspondence
At the conclusion of this unit, you will be able to:
Rollover: Unit Objectives




(C) SAP AG AC815 9-3
SAP AG 1999
Loans management
within SAP Treasury
Special cases
Complete process
including master data
Contract currency
changeover
Disbursement
Course overview
Process flow for
loans given
Loan contract
Payments due
Closing operations
Rollover
Course Overview Diagram




(C) SAP AG AC815 9-4
SAP AG 1999
The fixed period for conditions has expired for a
loan given. You want to discuss future conditions
with the customer. You can present various
different condition offers.
You also want to write to all customers whose loan
has not been changed over to the euro.
Rollover: Business Scenario




(C) SAP AG AC815 9-5
SAP AG 1999
- Create loan
- Business partner
- Conditions
- Correspondence
- Disburse/post loan
- Integration with CM
- Integration with FI
- Post amounts due
- Incoming payment (post)processing
- Accrual/deferral
- Valuation
- Summarization
- Information system
- Special cases
- Rollover
Interested Interested Appl Appl. Offer Contract . Offer Contract Disburse Disburse- - Other Other Rollover
party party ment ment activities activities
Transaction management Portfolio/Accounting
Mortgage Loans - Processing Seq./Contract




(C) SAP AG AC815 9-6
SAP AG 1999
Time
DD.MM.YYYY DD.MM.YY+3
Contract
conclusion
End of the
first fixed
condition period
DD.MM.YY+15
End of loan
period
Contract
Conditions:
Fixed from
DD.MM.YYYY
Fixed to
DD.MM.YY+3
Offer/contract
Conditions:
Fixed from
DD.MM.YY+3
Fixed to
DD.MM.YY+7
Rollover
Change contract
or
Loans: Rollover



The fixed period agreed for loan conditions may be shorter than the contract period. At the end of
this period, you determine a new period and new conditions with the borrower.
You can process a contract individually (by changing a contract or using individual rollover), or you
can use the special rollover function.
If you create offers or contracts for loans that are in the rollover process, these loans are blocked for
other processing that is relevant to capital; you can no longer change conditions via the functions
Change contract, Disbursement, Enter business operation, Waive contract, Capital transfer, or
Reversal.
If a loan is in a rollover file, and offers/contracts have not been created yet, you can use the above
processing functions as long as this is permitted by the settings in Customizing.


(C) SAP AG AC815 9-7
SAP AG 1999
Loan disbursement posted
Change contract
User authorization
Loans: Changing Contracts



If disbursements have been posted for a loan, only users with the appropriate authorization can
change the contract and conditions.
(Exception: Condition data that is not relevant for finance, such as the payer and posting data in the
condition items, and request, contract, and termination data in the condition header data can be
changed without special authorization).
If you change conditions via the Change contract function, no condition history is available - except
for change documents. Only the current condition header is displayed. A condition history is
available however in the rollover function.

(C) SAP AG AC815 9-8
SAP AG 1999
Rollover: Rollover:
Adjustment of Adjustment of
loan conditions loan conditions
At the end of the At the end of the
current current
fixed period fixed period
At any At any time time
Rollover: General



You can use the rollover function to roll over a large number of contracts whose conditions have
expired automatically.
The rollover functions enable you to
Adjust the loan conditions for several contracts at the end of the expired fixed period (including
the organization and monitoring of the business operations occurring in this organization)
Adjust the conditions of an individual loan at any time
You can make scheduled adjustments (at the end of the fixed interest period) using the automatic
rollover functions; for unscheduled adjustments (at any time), you can use the individual rollover
function.
When you carry out a rollover, the system generates a new condition header and new entries for the
fields to be changed in the condition items. You can then track the original values using the
condition history. The other fields (contract master data) remain unaffected by the rollover and
continue to appear in the condition items. At the same time, the system makes some automatic
adjustments, for example, deleting conditions that have expired.

(C) SAP AG AC815 9-9
SAP AG 1999
General file, main file, file
Register
Functions
Table
Variants
Modifications
Rollover: Central Terms



You select the loans to be processed in the rollover using the appropriate selection criteria. You can
group the loans selected in different files for processing. (Example: File 1 Mortgage loans, File 2
General loans).
A file is subdivided into registers. (Example: File 1. "Not processed" register, "In progress" register,
"Completed" register).
Each register contains various functions. (Example: "Not processed" register functions: "Create
offer", "Print offer"; "In progress" register functions: "Print offer").
The tables are special condition tables for the rollover function. (Example: Table 1 for mortgage
loans, table 2 for general loans).
You can define an unlimited number of variants for each table, that is, different "sets" of conditions
with different interest or repayment clearing terms, and so on. For each table, you can define
modifications that can be used to change specific loan conditions (indicated as permitted in
Customizing).
In the rollover function, the file structure is relevant for mass processing as well as for individual
rollover; tables however, are only required for mass processing.

(C) SAP AG AC815 9-10
SAP AG 1999
How is the rollover carried out? How is the rollover carried out?
Result of rollover? Result of rollover?
Offer(s) Contract
Which contracts are rolled over? Which contracts are rolled over?
Files Files
Main files Main files
General file General file
or in or in
or in or in
Contracts Contracts
in specific in specific
Variant 1: Variant 1:
Variant 2: Variant 2:
Variant n Variant n
(Modification(s)) (Modification(s))
(Modification(s)) (Modification(s))
Table Table
Rollover - Overview



A rollover always relates to a certain number of contracts which correspond to your selection
criteria. You roll over the contracts for a file, a main file or a general file.
You define the rollover characteristics in a table. A table consists of variants and modifications.
As a result of the first rollover step, the system generates offers for you to send to your borrowers.
The offer accepted by the borrower is then used to create the contract via the individual rollover
function.
You can also omit the offer step and use the rollover function to create contracts directly.
The offers/contracts consist of the condition header and the related condition items.

(C) SAP AG AC815 9-11
SAP AG 1999
Loan: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
General file General file
Main file Main file Main file Main file
File File File File File
Rollover: File Structure



The above hierarchy allows you to organize your work more effectively.
The general file contains all the main files, and hence all the files in the system. The system
generates this file automatically as a 'virtual' file. There is one general file for each company code -
this provides an overview of all the loans in a rollover process.
A main file is subdivided into a series of files. The rollover file is a primary parameter for
organizing rollover activities. Rollover files enable you to group loans and process them together.
For example, you could create a file for each rollover clerk.
You can control access to files and main files by entering an authorization group. You can control
access to a general file via the display and change transactions linked to the user profile.
When a file is filled, the system checks whether the display authorization required exists for each
loan selected. Loans with excluded authorization groups are logged and not entered in the file.
A loan can only exist in one register/file/main file within the rollover function.



(C) SAP AG AC815 9-12
SAP AG 1999
Company code
Main file
Table YYYYMM
Version number
0001
Rollover05
YY05
Reference
Company code
Main file
Version YYYYMM
Version number
Rollover: Creating Main Files



If you create a main file, the version number that you specify is used to distinguish between various
alternatives; the version number is assigned internally (sequential numbering for each explicit
version, starting with 001).
You can change a main file as long as it has not been filled.
SAP recommends that you only create one version of the main file per month and use the
corresponding month and year for the name.

(C) SAP AG AC815 9-13
SAP AG 1999
Insert file Edit selection
No.
Loan distribution
Clerk pref.
Remainder distrib.
Equal Sequentl Assigned
File list File list
File Clerk Name AGrp
SC
PSC
Company code
Main file Version YYYYMM
0001
Rollover05 YY05 001


EU1 Miller Miller/Little

Rollover: Creating Files





Using the main selection criteria in the main file, you define the loans to be selected (selection is
usually carried out using the End of fixed period field in the condition header).
In the file list, you create the files required for automatic processing. Using the selection criteria
(SC), you can define which loans from the main file are to be selected in each of the files.
A range of functions are available for assigning loans to the individual files:

- Specification of the name of the clerk in the file: Only for information purposes.

- Name of clerk specified in the file and the flag Clerk pref. is set: All loans that fulfil the
selection criteria of the file (priority 3), or where the clerk specified is entered in the loan*
(priority 2), or where both these conditions are fulfilled (priority 1), are assigned to this file.

- Remainder distrib.: The loans from the main file that could not be assigned to a file on the basis
of the selection criteria can be distributed to the files as follows:
- Sequential: The unassigned loans are distributed to the files in sequential order.
- Equal: The unassigned loans are distributed such that the number of loans in each of the files
is the same (as far as possible).
- Assigned: The unassigned loans are entered in specific files.

* The clerks for the rollover must be defined as business partners in the corresponding role (and
entered in the loan).

(C) SAP AG AC815 9-14
SAP AG 1999
Print parameters - Log
Log level
Execution parameters
Online execution
Execute in batch imm.
Schedule batch
Rollover main file
Company code
Main file
Version YYYYMM
Version number
x
x Test run
Refer. date
9 Print/spool param. log
0001
Rollover05
YY05
001
05/12/YY
Rollover: Filling Files



You trigger the Fill Main File function for each main file.
The reference date must be a date between the Fixed from and Fixed until dates for the loans to be
selected.
When the file is filled, all capital fields are calculated at the end of the fixed interest period. If you
subsequently require the current capital values for the loans in the rollover process, use the report
"Update files". The capital fields of the loans selected are updated at the date of the calculation and if
necessary, the contracts with remaining capital of zero are reassigned to specific registers. The
separate update is required since the capital fields are not updated automatically for performance and
architecture reasons.

(C) SAP AG AC815 9-15
SAP AG 1999
Create Table Create Table
Company code
Table
Table YYYYMM
0001
Rollover05
YY05
Reference
Company code
Table
Version YYYYMM
Version number
Rollover: Creating Tables I



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

(C) SAP AG AC815 9-16
SAP AG 1999
Rollover: Creating Tables II
Create Table Create Table
Company code
Table
Name
Effective from
Reserv. period
Effective to
End cond. res.
Auth. group
Status
Variants Modifications
0001
Roll_05 YY05 001
Rollover May
05/01/YY 06/30/YY
6 weeks 06/12/YY



The date on which you carry out the rollover in the system must be between the Effective from and
Effective to dates.
In the Reserv. period field, you specify how much time the customer has to reply. The reservation
period is calculated from the date when the offer is created in the system. If the reservation period
has expired, all contracts that have not been processed are automatically transferred to a register
defined specifically for this purpose.
If you make an entry in the End cond. res. field, all contracts not processed on this date are also
transferred.
If you make entries in both of these fields, the shorter period is applicable.
A table can have different statuses: Undefined (is currently being created), To be released, Released,
Deactivated.
If you specify an authorization group in the rollover table, only employees with the corresponding
authorization group may process the table.

(C) SAP AG AC815 9-17
SAP AG 1999
Create variants Create variants
Table
Name
Effective from
Reserv. period
Status Released
Effective to
End cond. res.
Condition variants
Rnk Fxd int. DRate Nom. int. + Toler. - Toler.
Roll_05 YY05001
Rollover May
05/01/YY 05/01/YY
6 W 06/12/YY
001 3 Y 100.00 8.5000 2 M 2 M
Edit SC
Selection criteria Selection criteria
- -> Loans that fulfill > Loans that fulfill these these
criteria are rolled criteria are rolled over over
using variant using variant 001 001
Rollover: Variants



You can define an unlimited number of variants ("sets" of conditions) for each table. Via the
selection criteria, you can define which loans should be rolled over using the conditions of each of
the variants.
To define new conditions for all of the loans selected, you can use tolerance limits to extend the
validity: One variant applies for all loans with a remaining term longer than or equal to "Fixed
interest period minus the negative tolerance".
If the remaining term is shorter than or equal to the "Fixed interest period plus the positive
tolerance", the condition applies for the whole of the remaining term (the fixed interest period is
changed to correspond to the remaining term). If the remaining term is longer than this limit, the new
condition applies for the fixed interest period defined.
The sequence of the variants is not relevant for creating offers since you can create as many offers as
there are valid variants. If contracts are created immediately, the first valid variant in the sequence is
used.

(C) SAP AG AC815 9-18
SAP AG 1999
Rnk Fxd int. DRate Nom. int.
+ Toler. - Toler.
+ -
001 3 Y 100.0000 8.5000
2 M 2 M
Condition variants
All loans with remaining term Offer conditions fixed for
a) >= 2 years and 10 months The total remaining term
and (2 years and 10 or 11 months; 3 years;
<= 3 years and 2 months 3 years and 1 or 2 months)
b) > 3 years and 2 months 3 years
Variants: Tolerance Limits - Examples



If you do not specify tolerance limits, only those loans with a remaining term of exactly three years
would receive the new conditions for exactly three years. All other loans (remaining term longer or
shorter than 3 years) are not considered.
You can use the tolerance limits for example, to ensure that loans with a remaining term slightly
longer than the standard fixed interest period for the variant are also considered. If this were not the
case, the contracts that, for example, have a remaining term of 3 years and 1 month would be defined
with new conditions for 3 years. In 3 years, you would have to agree new conditions for the
remaining term of 1 month.
Additional example: Fixed interest period + Tolerance - Tolerance

Variant 1 2 years 6 months 2 years
Variant 2 5 years 1 month 2.5 years
Variant 3 10 years - 4 years

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

(C) SAP AG AC815 9-19
SAP AG 1999
Rollover: Modification(s)
Create Modification(s) Create Modification(s)
Table
Name
Effective from
Reservation period
Status Released
Effective to
End cond. res.
Condition modifications
Rnk SC Short name Ref. Modified val. MOpt Sign Var.no.
Nom. percent. 0.5 X 002
Roll_05 YY05001
Rollover May
05/01/YY 05/01/YY
6 W 06/12/YY
MN
x
Edit SC



You can use modifications to configure the new conditions as well as to change additional fields (in
addition to the fields offered in the variants).
Example:
The nominal interest specification for variant 002 is 0; this means that the values are transferred from
the old contract. If the modification has entries as in the above example, the entry "+0.5" means that
the interest value transferred is increased by 0.5 percent.
Via the selection criteria, you define the loans for which the modification data is to be used. By
specifying a variant number, you can define that the modification should only apply for those loans
rolled over with the corresponding variant.



(C) SAP AG AC815 9-20
SAP AG 1999
File File
Main file Main file
General file General file
Individual rollover Individual rollover
Edit
Display
Edit
Display
Edit
Display
Edit
Rollover: Processing Options



You can roll over loans individually using the Individual rollover function. To use the mass
processing function, select all loans to be edited from a specific file, main file, or general file. You
define the permitted ways of using the mass processing function in Customizing.
You can use mass processing to create offers or contracts. If the customer decides to accept one of
several offers, you transfer the offer data to a contract using individual rollover.
You can use individual rollover to create offers or contracts, or to transfer offer data to a contract.


(C) SAP AG AC815 9-21
SAP AG 1999
File information
No. of loans
Company code
Main file Version YYYYMM No.
Totals
0001
Rollover05 YY05 001
369,827.72 322,527.75
Register overview
Rnk Short name No. of loans Contract capital Planned capital
5
UB Not processed 5 269,827.72 222,527.75
: : : : :

Rollover: Register Overview I





In Customizing, you define which registers the system should create for each file. Registers are
subdivisions of the file, and reflect the distribution of the individual loans by processing status
during the rollover transaction.
From the register selected, you can display the overview of the loans in this register. You can then
process the content of this register.

(C) SAP AG AC815 9-22
SAP AG 1999
File/Register information
Main file
Register
No. of loans
Loans overview
N
P R
Contract no.
100001237
101085536
x
x
N
Online individual rollover
Display contract
Rollover - Create offers
Rollover - Print offers
Rollover - Remove offers
.
.
.
Function overview
Select edit function
1
1
N
N
N
Rollover05
UB
5
Rollover: Selecting the Editing Functions



To process the loans in this register, select the loan and choose Functions. The Select edit function
dialog box appears. You can use functions such as Create offers, or Print offers. You define the
editing function available in each register in Customizing.
All the loans you select are edited using the function selected.
The reference date is the processing date; in order for a table to be used for configuring conditions,
the reference date must be between the Effective from and Effective to dates of the relevant table.
The rollover generates new condition headers of the following type:
Offer: Document that has not been signed yet. It contains the new conditions to be used for the
next fixed interest period for a loan rollover. The borrower can accept or reject this offer.
Contract offer: Offer signed by the lender. If the customer accepts the offer, when he signs the
document, a legally binding contract arises.
Contract: Legally binding contract signed by both parties.
Rollover contract: Contract document generated by the rollover and signed by the lender before
being sent to the borrower for signature.
Fixed contract: Contract that is legally binding when created, that is, neither the signature nor the
agreement of the borrower is required.
The system currently only processes "Offers" (offer; contract offer) and "Contracts" (contract;
rollover contract; fixed contract).

(C) SAP AG AC815 9-23
SAP AG 1999
Print parameters - log
Execution parameters
Rollover table
Log level Print/spool param. log
Company code
Main file
Table YYYYMM
Table number
Online execution
Execute in batch imm.
Schedule batch
Test run
Refer. date
Rollover date
End of fixed interest period

05/31/YY
9
0001
Roll_05
YY05
001
On key date
Rollover: Creating Contract Offers



After you have selected the function, a screen appears where you can define the execution
parameters.
Here you define which rollover table is used. You also define whether the rollover offer should be
created online or as a batch job.
You have two options for the rollover date (new Effective from date for the new conditions). You can
choose the end of the fixed interest period - this can vary for each contract. Alternatively, you can
assign a fixed key date from which the new conditions apply for all loans affected by this rollover.

(C) SAP AG AC815 9-24
SAP AG 1999
File information
No. of loans
Company code
Main file
Totals
0001
Rollover05
369,827.72 322,527.75
Register overview
Rnk Short name No. of loans Contract capital Planned capital
5
UB Unprocessed 4 69,827.72 222,527.75
: : : : :
AE Roll. offer created 1 100,000.00 100,000.00

Rollover: Register Overview II





In Customizing, you can define whether and to which register contracts that have been processed
should be transferred, or whether a loan should be removed from the rollover once it has been
processed.
Example: An offer is created for a loan that was previously in the register "UB" - unprocessed. Based
on the settings in Customizing, the loan is automatically transferred to the register "AE" - offer.

(C) SAP AG AC815 9-25
SAP AG 1999
1. Create and fill file structure.
2. Create tables
- Variants
- Modifications
3. Edit files
- Create and print offers
- Create and print rollover contracts
- Remove loans from the file structure
Rollover: Process Overview




(C) SAP AG AC815 9-26
SAP AG 1999
Evaluation Evaluation
Rollover statistics
File contents
Rollover: Evaluations



The rollover statistics provide information about rollovers in a specific period. You can start this
evaluation separately from the rollover file structure, that is, all loans are considered irrespective of
whether they are in a rollover file or not.
The report evaluates one company code at a time. The decisive selection criterion is the interval for
the end of the fixed interest period. As a default setting, all capital amounts are calculated at the end
of each fixed interest period. Alternatively, you can enter a calculation date here if required.
The report issues total statistics for each product type/loan type.
If you evaluate the file contents, the system issues the following information for all company codes
for the loans selected (general file, main file, file, register):

- Capital fields and number per register

- If you selected an individual list according to loan number or file structure: List of all loans in the
file structure selected.

(C) SAP AG AC815 9-27
SAP AG 1999
Activity type
L Logical fields
Register
Report functions
Transaction functions
Functions/register
Variant-relevant condition types
Loans
_
_
_
Functions
Rollover
Customizing: Rollover



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

(C) SAP AG AC815 9-28
SAP AG 1999
Loans
_
_
_
Functions
Rollover
_
Activity type
AT
P
Name
Rollover
Customizing: Define Activity Type



Use activity type "P" for rollover.

(C) SAP AG AC815 9-29
SAP AG 1999
Detail
101020
Selection field
Properties
Set/get-progr.
Program
SAPFF67P
"Double-click"
FldNo.
101010
101020
:
Name
Product category
Product type
:
Field number
Define logical fields
Modification
Customizing: Define Logical Fields



During the rollover, at various points, selection criteria are used to select the relevant loans. The
fields available as selection criteria are defined in Customizing.
You can edit the contents of logical fields by means of a read and write routine (Set & Get Routine).
As logical fields, you can define all of the fields from the R/3 standard tables (for example, partner
data, loan basic data, or loan conditions), or from external files.
They are used as selection criteria for:
- Choosing the loans to be rolled over on a certain date (main file)
- Distributing the loans to the files
- Assigning new conditions (variants)

(C) SAP AG AC815 9-30
SAP AG 1999
Register
Name
Rollover offers created
RegisterTyp
Target reg. ID Removal ID
Properties
"Double-click"
RG
AD
AE
:
Name
Rollover offers printed
Rollover offers created
:
AE
Register definition
Dunning reg.
Term end reg.
Changes permitted
Dunning tol.
Term end tol.
Customizing: Define Register



In Customizing, you define the registers for each file.
You enter details for each register, for example, whether a register can be a target register, that is,
whether the loan can be automatically transferred to this register after the editing functions have been
executed.
If you set the flag Removal ID, you can remove a contract from the register without carrying out any
processing.
If you specify a register as a dunning register, all contracts in this register where the reservation
period has expired are entered there. You can specify a lead time using the dunning tolerance.
If you specify a register as a term end register, all contracts in this register where the fixed interest
period has expired are entered there. You can specify a lead time using the term end tolerance.
The Changes permitted flag controls whether capital-relevant changes are permitted for loans that
are in a rollover folder in this register (and for which no offer/contract has been created).

(C) SAP AG AC815 9-31
SAP AG 1999
Function code
Function call RFVDPF01
Detail screen
PAES
FCd
PADR
PAES
:
Name
Print rollover offers
Create rollover offers
:
Exec. param. ID
Refer. date ID
B
Define report functions
AE TrgtRegister
Customizing: Editing Functions I



Loans are processed using functions. The system differentiates between report and transaction
functions.
In the case of report functions, the system uses a report program to process a task, making it easier
for you to single out an activity. In the case of transaction functions, you process tasks as part of an
interactive transaction.
In the application, you can carry out report functions in various ways, and the system generates a
report processing log.
There is a detail screen behind each entry in the Customizing table. You can set default entries here,
for example, for the execution parameters (online, batch), or print parameters (log).

(C) SAP AG AC815 9-32
SAP AG 1999
Function code
Function call
Init. program
FNP0
"Double-click"
MPAE
FCd
MPAE
Name
Dialog individual rollover
SAPFF67F INIT.FNP0 Init. form
Define transaction functions
Customizing: Editing Functions II



Transaction functions start a transaction. The standard system contains three transactions: Individual
rollover, Display contract, Loan overview.
In the detail screen, you define the default values, in particular for the function call, the initialization
form routine ('Init.form'), and the program for this routine ('Init.program').

(C) SAP AG AC815 9-33
SAP AG 1999
SR
AD
AD
AD
AD
.
.
.
FCd
DAEF
MPAE
PADR
PAED
.
.
.
Fil. MnF GnF Df DR
26
1
4
3
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Activity type
P
Assign Functions to Register
Customizing: Assign Functions to Register



In order to guarantee controlled loan processing, you have to assign the report and transaction
functions (FCd) that you define to the individual registers. This means that in the application, you
can only access some of the functions for each processing status.
Using the columns File, Main file, General file, you define whether the corresponding editing
function is permitted if you access the function via Edit file/main file/general file.
You define one editing function for each register - this is then the default in the application selection
screen.
The last column contains the sequence for displaying the editing functions in the selection screen.

(C) SAP AG AC815 9-34
SAP AG 1999
FCat Flow category CTyp
TTAN Annuity repayment 261
TZ Nominal interest 201
TV Repayment offset 204
Activity type P Rollover
Customizing: Variant-Relevant Condition Types



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

(C) SAP AG AC815 9-35
SAP AG 1999
Rollover correspondence
Define documents
Define correspondence activities
Assign function/program to correspondence
activities
Assign documents to correspondence activities
and roles
Customizing: Rollover - Word Processing



The Customizing settings for correspondence are used for rollover correspondence. You have to
assign the functions/programs that you have defined under rollover/report functions to the
correspondence activities.

(C) SAP AG AC815 9-36
SAP AG 1999
Process management
File
File
File
File
File
File
File
File
Configure/fill files
Configure/fill files
Main file
Main file
Main file
Main file
General file
General file
Process Management: Overview



The Process management function is based on the same functions as rollover.
It also builds on the file concept and is used for example, for mass output of various
correspondence, such as the interest certificate.
A loan in the rollover file can also be assigned to one file of another activity type at the same time
(for example, a process management file).

(C) SAP AG AC815 9-37
SAP AG 1999
Settings for process management:
Process management
Correspondence
- Text processing
- External flow types
Process Management: Customizing



Under Functions -> Process management in the IMG, you can access the same settings as for
rollover. You maintain these in the same way.
You define an activity type here, for example, K for correspondence.
You make the settings for correspondence here for the settings for text processing and external flow
types required for process management.

(C) SAP AG AC815 9-38
SAP AG 1999
Customizing for number ranges:
For rollover: For process management:
Condition number
Rollover number
Condition number
Rollover/Process Management: Number Ranges




(C) SAP AG AC815 9-39
SAP AG 1999
Process rollover contracts when the condition
terms have expired - using individual processing
and mass processing
Use process management for random selection of
contracts as well as for mass correspondence
You are now able to:
Rollover: Unit Summary




(C) SAP AG AC815 9-40
Prolongation Exercises



Unit: Rollover



Rollover of a loan contract


As a result of changes in the market, the borrower asks you to revise the
loan conditions during the fixed interest period. The borrower wants to
view new offers.


1 Carry out an unscheduled loan adjustment.
First of all, create a main file in your company code:
Main file: XXTRXX
Version YYYYMM
1-1 Then create a file within the main file:
File: TRXX (XX = your group ID)
Assign a rollover clerk to the file (use the matchcode search facility).
1-2 Edit the following:
Main selection criteria:
- Product type: 30A
Selection criteria:
- Loan type: 005 (1A loan)
Save your entries.

(C) SAP AG AC815 9-41
2 Carry out an individual rollover for your loan. You want to create rollover offers to
send to your borrower.
2-1 Assign your loan to the main file 'XXTRXX' and the file 'TRXX' that you have
just created for your company code.
2-2 Create various rollover offers based on the original contract.
Save your entries.
3 You now want to print the offers to be sent to the borrower. To do this, edit the file you
created earlier. Which register contains the loan?
Look at the print preview for the offers.
(-> next editing function: Print rollover offers)
You want to print the offers online. Set the print parameters for displaying the print
preview. Display the offers.
4 The borrower has decided to accept one of the offers. Convert this offer into a contract.
Save the contract.
Which register of the file contains the loan now?
After the loan has been rolled over, remove it from the file.
5 Return to the contract and look at the condition history.
Which function in the condition history allows you to display the rollover offers you
have created?

(C) SAP AG AC815 9-42




Unit: Rollover



Creating tables


You want to send rollover offers that reflect current market conditions to
borrowers whose loans are about to reach the end of the fixed interest
period.

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

7 Assign contracts with product type 30A that expire at the year end to variant 1,
and the contracts with the following characteristics that expire at the year end to
variant 2:
Product type 33A
Nominal interest rate > 4%


(C) SAP AG AC815 9-43
Rollover Solutions



Unit: Rollover
Topic: Rollover

1 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
Version
YYYYMM
Confirm your entries with ENTER.
1-1 Create a new file via Insert file.

Field name or data category Value
File name TRXX
Clerk 9000000002

1-2 Set the selection criteria.
Via Edit main selection criteria, you can carry out a preselection from all files
at main file level:

Field name or data category Value

(C) SAP AG AC815 9-44
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:
Fixed period
Offer conditions
Interest and repayment conditions

(C) SAP AG AC815 9-45



Select Condition overview to go to the initial screen. You can then
repeat the transaction to create another offer.
Select Create rollover offer again, then double-click the new item to
go to the editing screen.
Save your entries.

3 Print the rollover offers:
Accounting
Treasury
Loans
Portfolio
Rollover
File Processing
File
Edit

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.


(C) SAP AG AC815 9-46


Carry out an update run and select Output immediately.


On the following screen, select Print preview, and then choose the letter you want to
display.



Do not forget to print the document after viewing the print preview.


4 To convert a rollover offer into a contract, proceed as follows:
Accounting
Treasury
Loans
Portfolio
Rollover
File Processing
File
Edit


The loan is in register AD (rollover offers printed).


Select register AD from the overview and then select Register content.
Select the loan and choose Functions.

From the function overview that appears, select Dialog individual rollover.

Choose the offer that has been accepted and then select Create contract.

Save the contract.


The loan is now in register VE (contract offers created).

(C) SAP AG AC815 9-47


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

5 Check the condition history:
Accounting
Treasury
Loans
Portfolio
Contract
Display
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.

(C) SAP AG AC815 9-48




Unit: Rollover
Topic: Creating tables
6 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.


(C) SAP AG AC815 10-1
SAP AG 1999
Master data:
- Business partner
- Credit standing check
- Objects
- Collateral value calculation
- Securities
- Filed documents
- New business table
Application/offer/decision-making/contract
Release
Customizing
Contents
Complete Process Including Master Data




(C) SAP AG AC815 10-2
SAP AG 1999
Use the options for managing contract acquisition
data in the system (application, offer, decision-
making)
Use the options for managing additional loan data
At the conclusion of this unit, you will be able to:
Complete Process Including Master Data: Unit
Objectives




(C) SAP AG AC815 10-3
SAP AG 1999
Loans management
within SAP Treasury
Special cases
Contract currency
changeover
Disbursement
Course overview
Process flow for
loans given
Loan contract
Payments due
Closing operations
Rollover
Complete process
including master data
Course Overview Diagram




(C) SAP AG AC815 10-4
SAP AG 1999
As well as managing existing contracts in the
system, you also want to reflect the contract
acquisition process. You want to include all
available relevant data, such as credit check data,
collateral value calculation, and so on.
Complete Process Including Master Data: Business
Scenario




(C) SAP AG AC815 10-5
SAP AG 1999
Integration with R/3 FI / TR Cash
Management
Master data Master data
Business partner
Credit standing check
New business tables
Filed documents
Collateral
Object master data
Collateral values
Transaction mgmt Transaction mgmt
Interested parties
Application
Decision-making
Offer
Contract
Rollover
Process management
Transfer postings
. . .
Portfolio Portfolio
Evaluations in the information system
Overview of the Process for New Business -
Mortgage Loans



In the Loans area, you can mange the various stages in the loan process and link your loans to
different master data.
There are also numerous position management functions for loans that have been entered in the
system.
The transactions in Loans Management are integrated with the R/3 Financial Accounting component
and with TR-Cash Management.
A range of programs allow you to carry out evaluations according to different criteria.

(C) SAP AG AC815 10-6
SAP AG 1999
Evaluations in the information system
Integration with R/3 FI / TR Cash Management
Contract Contract
offer offer
Interest.party Interest.party
Application Application Contract Contract
Mortgages Mortgages
General loans
Mortgages
General loans
Policy loans
Mortgages
General loans
Policy loans
Borrower's note loans: Reservation / Order Contract Borrower's note loans: Reservation / Order Contract
D
e
c
i
s
i
o
n
-
m
a
k
i
n
g
Possible Procedures in Loans Management



There are separate menus for each type of loan. These contain the possible steps in the loan process
for the type of loan in question.
The process in the mortgage loan area is the most complex.
All forms of loan are integrated with R/3 FI and TR-CM and can be evaluated according to various
criteria.

(C) SAP AG AC815 10-7
SAP AG 1999
- 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
Interested Appl. Offer Contract Disburse Disburse- - Other Other Rollover Rollover
party ment ment activities activities
Transaction management Portfolio/accounting
Mortgage Loans - Processing Seq./Contract




(C) SAP AG AC815 10-8
SAP AG 1999
Partner
Credit standing
calculation
Collateral
value
Objects
Collateral
New business
table
Filed
documents
Loans
Master Data - Overview



In the R/3 System, all real estate collateral in the form of land and buildings is included under
Objects. Collateral is all securities except for land and buildings (objects).

(C) SAP AG AC815 10-9
SAP AG 1999
Cred. stand.
calculation
File File
Cust. in FI Cust. in FI
When loan
is created
Loans
Object
with basic data
Collateral value Collateral value
Land register:
Part 1: Real estate register
Part 2: Incidental rights
Part 3: 3 sections
Sec. I) Display owners
Sec. II) Charges
Sec. III) Encumbrances
Collateral:
Life insurance
Stocks
Savings account Savings account
:
Borrower Partner Borrower Partner
= Prerequisite for the creation
of Encumbrances
Data is also automatically transferred
to the land register, Part 3/sect.III
Master Data: Context




(C) SAP AG AC815 10-10
SAP AG 1999
Partner
Credit standing
calculation
Collateral
value
Objects
Collateral
New business
table
Filed
documents
Loans
Master Data - Partner




(C) SAP AG AC815 10-11
SAP AG 1999
Create Contract: Initial Screen Create Contract: Initial Screen
Company code
Loan number
Product type
0001
/intern/
33A

Business partner selection


Role category main borrower
E N T E R
Loans - Initial Screen



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

(C) SAP AG AC815 10-12
SAP AG 1999
Partner Partner
Loans Management
Basic functions TR-TM
Create/Change/Display Create/Change/Display
Create/Change/Display Create/Change/Display
in roles in roles
Create/Change/Display Create/Change/Display
in roles compared to loans in roles compared to loans
Business Partner



In business partner management, you can create, change and display general business partner data.
You can enter a loan partner in the system in three ways:
1. Create business partner by choosing Basic functions -> Business partner in the application menu:
In this case, you create the partner using a grouping, without assigning an application area. You can
then assign loan-specific roles and data to the partner later on.
2. Within the Loans Management component - Business partner -> Create in role:
In this case, you first specify the application area (such as mortgage loan, borrower's note loan,
policy loan, or general loan) and then enter the partner role (for example, '0100' Main borrower) on
the next screen. If role types have been defined for a role category, these are displayed; if not, the
role category is displayed.
3. Within the Loans Management component - Create business partner in role when creating a loan:
You select the role here (role type or category). If an FI customer account is required for loans in that
particular status, the system creates an FI customer automatically on the basis of the default values
defined in Customizing. If no FI customer is required for this loan status, the system only creates an
FI customer using the default values if you call up a customer view.



(C) SAP AG AC815 10-13
SAP AG 1999
Credit standing
calculation
Partner
Collateral
value
Objects
Collateral
New business
table
Filed
documents
Loans
Master Data - Credit Standing Calculation




(C) SAP AG AC815 10-14
SAP AG 1999
Master data: Credit stand. calculation
- Create/Change/Display
Business partner reference
(with role category "Credit standing
calculation")
Credit Standing Calculation - Business Partner



You can create, change, and display a credit standing calculation for each business partner that has
the corresponding role category. You can no longer change calculations that you display. If the
credit standing data changes, you have to create a new calculation using the new Valid from date.
An unlimited number of credit standing calculations can exist for each business partner. You can
only calculate a new credit standing calculation however once the last calculation has been fixed.



(C) SAP AG AC815 10-15
SAP AG 1999
Basic data
Calculation for Brown/ 1 Main Street / Washington DC 20433
Cred. stndg inst. 0001 Schufa
Industry Employm. status Self-employed 04
Form type 0001 H
Cons. no.
Currency
Credit standing calculation
No. of persons
No. earners
4
1
Calcul. up to
Freeze date
H
001
UNI
04/27/YY
Monthly income Amount
Net salary of applicant 10,000.00 10,000.00
Incomings and outgoings
Creating Credit Standing Calculations



First of all, you select the business partner you want to carry out the credit standing check for.
You then choose which type of calculation form you want to use.
You enter the basic data, such as the number of persons and earners.
You then add the details relating to the borrower's income and financial commitments.
The system uses the data you have entered to calculate whether the total incomings minus the total
outgoings result in a surplus or a deficit.
If you have entered an authorization group in the data for the role category Credit standing check in
the business partner, only those users that have the appropriate authorization can process a credit
standing calculation for this business partner.


(C) SAP AG AC815 10-16
SAP AG 1999
Overview of forms
Form CT V Form items description
Overview of item types
Overview of item types
ItT T CT ItT Form items description
1 Monthly income
2 1 1 29 Net salary of applicant
6 1 1 29 Child benefit
0001 91 1 Credit standing calculation
Functions -> Credit Standing and Collateral Value Determination
-> Define Calculation Forms
Customizing: Credit Standing Calculation



The credit standing calculation is based on a calculation form. In Customizing, you can define
various different form types.
Credit standing checks and short versions of the collateral value calculation are defined based on the
calculation forms. They each have different calculation types.
For the credit standing check, you can choose between two calculation variants (V). One variant
calculation includes subtotals (income, expenditure, standard of living), the other does not.
The Item type (ItT) indicates the line in which the item should appear.
T is used for grouping items to calculate totals (see F1 Help).
The Calculation type (CT) specifies how the item is to be included in the calculation (percentage
calculation, quantities, and so on). The second ItT column specifies the total line in which the item
should appear.
The item description for the input field is displayed in the application.

(C) SAP AG AC815 10-17
SAP AG 1999
Objects
Credit standing
calculation
Partner
Collateral
value
Collateral
New business
table
Filed
documents
Loans
Master Data - Objects



Objects can be assigned to loans that belong to the product category Mortgage and where the flag
Objects active is set in the product type definition.

(C) SAP AG AC815 10-18
SAP AG 1999
Master data
- Create
- Change
Create/Change loans
Objects
Collateral
File
Master data
- Create
- Change
- Assign
Master data
- Create
- Change
- Assign
Master data
- Create
- Change
- Assign
Master Data - Procedure



Master data for objects (as well as collateral and files) can be created separately to a loan. From a
loan (application, offer, contract), you can access existing master data; this can be assigned to one or
more loans.
Alternatively, you can create master data from a loan, and this is then assigned to the appropriate
loan automatically.


(C) SAP AG AC815 10-19
SAP AG 1999
Yes Yes Yes No No No
Address available?
Create object data Create object data
Create object Create object
Master data
Loans
Create
address
Create Create
address address
Creating Objects




(C) SAP AG AC815 10-20
SAP AG 1999
Land register
Main object Main object
Additional Additional
object object
Loan Loan
Land register
Object - Loan



You can assign one or more objects to a loan. If there are several objects, you must define one of
them as the main object (object classes: Main, additional, joint liability). The data is included in the
main object in the decision-making stage.
If encumbrance rights exist for the objects, you can maintain the encumbrance right data as soon as
the object is linked with a loan.


(C) SAP AG AC815 10-21
SAP AG 1999
Basic data
Basic data
Additional data
Additional data
Parts of
building
Parts of
building
Land register
data
Land register
data
Basic data
Land register (name)
Valuation bases
...
Real estate register
Section I
Section II
Section III
Object - Data



Maintenance of the land register name is optional; you only need this name if encumbrance rights are
to be documented in the object data.
If you want to create correspondence for the land registry, you have to maintain the land registry as a
business partner with the appropriate role category. If this is not required for the correspondence, it
is sufficient to simply specify the land registry names in the object.
You can manage an "Online land register" for information purposes.


(C) SAP AG AC815 10-22
SAP AG 1999
Land registry
LndRegist. from
No. De Prcl Parcels RPRNo Business type
For PropOld LocSubDist Area Location
.
.
Land Registry Washington
Washington
333 40 172,175 7466 1-family house
Washington 325.00 Outskirts
Object - Real Estate Register



Some of the data from the land register details is used in the collateral value calculation (for
example, the area specification is used to determine the land value).

(C) SAP AG AC815 10-23
SAP AG 1999
Land registry
LndRegist. from
No. De List of properties Rank
Amount Currency Type of chge
Land Registry Washington
Washington
2 2
100,000.00 UNI 1 Mortgage
Mortgage Bank, Washington
1 1
250,000.00 UNI 2 Land charge
IDES
Object - Section III



You can use section II to enter encumbrances.

You can maintain and change third party rights in the land register data at any time.

You enter encumbrances when the object is assigned to a loan. The data you enter here is transferred
automatically to the fields in Section III of the land register data; this data cannot be changed in
section III. You can however make changes via the loan data.

If you branch to the land register data from the Change loan function via the object, you cannot
change the land register data. In order to avoid data inconsistencies, the data is only displayed in the
loan.

(C) SAP AG AC815 10-24
SAP AG 1999
Loan
~~~~~~~~~
~~~~~~~~~
~~~~~~~~~
Object Object
Sec. III)
Encumb. 8819
Assigned to
Encumbrances Object data
Land register data
Automatically entered in
Encumbrances





(C) SAP AG AC815 10-25
SAP AG 1999
Object overview
Object number Object type
Company code 0001 30A Mortgage loan
Loan number 10000000 60 Contract
1000000001
Create F4
Name
1000 - Encumbrance
1001 - Assigned encum.
Encumbrance overview
Collateral type Collateral type
Loans: Object - Encumbrance



Once you have entered the land register name, you can create encumbrances.
The encumbrances can be divided into collateral types and you define these in Customizing (for
example, original rights, assigned rights).

(C) SAP AG AC815 10-26
SAP AG 1999
V
Object number 1000000000
Land registry Washington
250,000.00 UNI
Encumbrance overview/detail
Collateral type Encumbrance
Type of charge Mortgage Ledger/letter
Amount
Right acc.to
land regis.
Creating Encumbrances



When you create an encumbrance, you enter information such as the type of charge (mortgage, land
charge), the mortgage type (ordinary mortgage, claim-securing mortgage), and the amount.

(C) SAP AG AC815 10-27
SAP AG 1999
Object Object
data data
-
-
Loans
Master Data
Collateral Object
Object Type
Land Register Type
-
- Basic Data
+
+
+
Additional Data
Parts of Building
Collateral Val. (Long Version)
F4
Customizing: Object



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


(C) SAP AG AC815 10-28
SAP AG 1999
Collateral
value
Objects
Credit standing
calculation
Partner
Collateral
New business
table
Filed
documents
Loans
Master Data - Collateral Value Calculation




(C) SAP AG AC815 10-29
SAP AG 1999
Master data: Collateral val.calc. (CVC) Create/Change object
- Create/Change
Object
Object Object
--> CVC long version
Environment
--> CVC long version
--> CVC short version
Collateral Value Calculation - Procedure



You have two options for calculating the collateral value. The long version uses the programmed
calculation structure. The short version is a calculation based on forms; in the same way as for the
credit standing calculation, you can determine the layout of the calculation for the short version by
making appropriate settings in Customizing.
Some of the data from the object is used in the collateral value calculation (long version), for
example, the area specification is used to determine the land value. You make settings in
Customizing to determine whether the data transferred to the collateral value calculation can be
changed.

If you create a collateral value calculation (long version), and then make changes to the object data,
these changes are not transferred to the existing collateral value calculation. You have to create a
new collateral value calculation. The changes to the object data are automatically included. To
create the new collateral value calculation, you can use the function Collateral value reference on the
initial screen; the prices are copied from an existing collateral value calculation.

(C) SAP AG AC815 10-30
SAP AG 1999
Collateral values - overview
Revenue value
Asset value
Build.value
Land value
Build.value
Parts of
building
Administrative
costs
Revenue value -
Parts of building
Collateral value - details
Collateral Value Calculation Long Version -
Overview




(C) SAP AG AC815 10-31
SAP AG 1999
Create Collateral Value: Details Create Collateral Value: Details Create Collateral Value: Details
Asset value
Revenue value
Mean value
ThPrtyExpOpin.
Proposal basis
Land value
Building value
Market value
Selling value
Deduction
Proposal
Fixing date
Rating base
Collateral val.
Collateral values
Fixing
0
0.00
0.00
1000000001
0000000002
20433, 1 Main Street Object number
Coll. no.
:
Collateral Value - Details




(C) SAP AG AC815 10-32
SAP AG 1999
1000000001 19 Forest Street / 69190 Washington
8000
400 5 400
8.400 8.400
1.260 15 1.260
9.660 9.660
10 966
8.694
Create Collateral Value: Building Value of Other Objects Create Collateral Value: Building Value of Other Objects
Building parts
Grounds
Construction costs
Construction incidental costs
Total
Collateral mrkdwn
Building value
Surcharge
Price New value Dep. Curr. val.
Garages
Park.sp.
Base costs
Stat. build. val.
Transfer building parts
318,176.25
8,000.00
1,000.00
300,000.00
8,000.00
2,000.00
310,000.00 0.00000
374,325.00
0.00
48,825.00
325,500.00
15,500.00
300,000.00
8,000.00
2,000.00
310,000.00
15.00000
5.00000
15.00000 56,148.75
374,325.00
48,825.00
325,500.00
15,500.00
Object number
Coll. no.
1000000001 20433, 1 Main Street
Collateral Value: Building Value



On this screen, you calculate the building value of an object.
The system calculates the values automatically (gray fields in the above illustration) on the basis of
the data you enter in the fields that are ready for input (white fields).


(C) SAP AG AC815 10-33
SAP AG 1999
Create Collateral Value: Building Value of Other Objects Part of Create Collateral Value: Building Value of Other Objects Part of Building Building
Object number
Coll.no.
BuilPrt Cubic area Price New val.
BuildPrtTyp Depr.
Build. parts
Totals for all building parts
250,000.00
250,000.00
1000000001 20433, 1 Main Street
1
1
625.00
EFM
400 250,000.00
250,000.00
Curr. val.
Collateral Value: Building Parts




(C) SAP AG AC815 10-34
SAP AG 1999
1000000001 19 Forest Street / 69190 Washington
Create Collateral Value: Land Value of Other Objects Properties Create Collateral Value: Land Value of Other Objects Properties
Property Parcel Parcels Area
Properties
Total for all properties: 0.00 125,000.00
Object number
Coll. no.
1000000001 20433, 1 Main Street
1 6
250.00
500.00
125,000.00 250.00
Land value
Total Devel. Price
Collateral Value: Land Value




(C) SAP AG AC815 10-35
SAP AG 1999
Create Collateral Value: Revenue Value Create Collateral Value: Revenue Value
Number Rnt/unit Gr. rev.
0.00
0
0
1
0
0.00
0.00
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
Commercial
Resident.
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
/
/
/
100 100
500.00
60.00
110.00
60.00
720.00
25,0000
180.00
540.00
5,0000 9,818.18
9,818.18
1000000001 20433, 1 Main Street
Coll. no.
Object number
Commercial
ExternalArea
Garages
Park.space
Resident.
ExternalArea
Garages
Park.space
Revenue value
Collateral Value: Revenue Value




(C) SAP AG AC815 10-36
SAP AG 1999
Create Collateral Value: Revenue Values Parts of Building Create Collateral Value: Revenue Values Parts of Building
Object number
BuilPrt C/R Usage type Area Rent
Gross rev. BuildPrtTyp
Build. parts
1000000001 20433, 1 Main Street
Coll. no.
1 0 1
1
Resident.
SFH
110 15 1,650.00
Collateral Value: Revenue Value Building Parts




(C) SAP AG AC815 10-37
SAP AG 1999
Create Collateral Value: Details Create Collateral Value: Details Create Collateral Value: Details
Asset value
Revenue value
Mean value
ThPrtyExpOpin.
Proposal basis
Collateral values
Land value
Building value
Market value
Selling value
Deduction
Proposal
Fixing date
Rating base
Fixing
Collateral val.
0
0.00
368,176.25
286,638.10
125,000.00
280,381.50
405,000.00
400,000.00
Object number 1000000001 20433 1 Main Street
Coll. no.
327,407.18
400,000.00
375,000.00
Volume unit M3 Cubic meter UNI
Area unit Square meter Acc/Part-owner. 0 No
Expert
1 Summ.val.det.
Valuation stat.
Provis.
M3
Currency
1 Valuation type
410,000.00
View
Collateral Value: Proposal Basis



On the basis of the collateral value specifications determined by the system, you enter a proposal
basis on this screen. When you press ENTER, the system fills the 'Proposal' field
automatically.
Via Collateral value -> Fix, you can fix the final value of the object. You cannot change a fixed
collateral value calculation.


(C) SAP AG AC815 10-38
SAP AG 1999
-
-
Loans
Master Data
Collateral Object
-
-
Collateral Value (Long Version)
F4
Object Object
Collateral value
calculation
-
Valuation Type
Rating Base
Functions -
-
...
-
Credit Standing and
Collateral Value Determination
Define Calculation
Forms
Customizing: Collateral Value Calculation





(C) SAP AG AC815 10-39
SAP AG 1999
Form CT V Form items description
Overview of item types
Overview of item types
ItT T CT ItT Form items description
1 1 9 Land value
2 1 4 9 Property value sqm x in DM
0101 92 Determination of collateral value
Overview of forms
Customizing: Collateral Value Calculation Forms



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

(C) SAP AG AC815 10-40
SAP AG 1999
Collateral
Objects
Credit standing
calculation
Partner
Collateral
value
New business
table
Filed
documents
Loans
Master Data - Collateral



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

(C) SAP AG AC815 10-41
SAP AG 1999
Master data
- Create
- Change
Create/Change loans
Objects
Collateral
File
Master data
- Create
- Change
- Assign
Master data
- Create
- Change
- Assign
Master data
- Create
- Change
- Assign
Master Data - Procedure



Master data for objects (as well as collateral and files) can be created separately to a loan. From a
loan (application, offer, contract), you can access existing master data; this can be assigned to one or
more loans.
Alternatively, you can create master data from a loan and this is then assigned to the appropriate loan
automatically.


(C) SAP AG AC815 10-42
SAP AG 1999
Building loan
agreement
Other
Contracts
Life insurance
Guarantees
Pledged
securities
Other credits
Collateral




(C) SAP AG AC815 10-43
SAP AG 1999
Collateral: Data
Collateral: Data
Life insurance
Building loan agreement
Securities
Guarantees
.....
Collateral data
- Amount
- Currency
- Life insurance contract number
- Security ID
- ...
Assignment data
- Collateral contract date (assignment)
- Amount of assigned portion
- ...
Collateral - Data




(C) SAP AG AC815 10-44
SAP AG 1999
Short name Total value Assigned value
Coll.
2000
2001
Endowment
Term life ins.
Number
Total/Value
Collateral
Company code
Loan number
Borrower
?
Assigned on
Short name
Mortgage loans
Contract
Brown/ 1 Main Street / Washington DC 20433
?
' -> Create '
0001 30A
60 10000000
Create Collateral



When you create data for a collateral object, you first define which type of collateral is relevant, for
example, whether you want to enter data for life insurance or a security. The system then branches
to the corresponding entry screen as defined in Customizing.

(C) SAP AG AC815 10-45
SAP AG 1999
Loans
Master Data
Collateral
Collateral Types
Guarantee Types I
Guarantee Types II
Special Treatment
Pledge Status
Special Arrangements
-
-
Define
collateral types
Special characteristics
for guarantees
Special characteristics
for life insurance
-
F4
Customizing: Collateral




(C) SAP AG AC815 10-46
SAP AG 1999
Col. Short name Name Cat.
1000 Encumbrance Encumbrance 1
1001 Ass. encumbr. Assigned encumbrance 11
2000 Endow. policy Endowment policy 2
2001 Term life ins. Term life insurance 2
Col. Short name
Encumbrance
Assigned encumbrance
1000
1001
F4 "Encumbrances" F4 "Collateral"
Col. Short name
Endowment
Term life ins.
2000
2001
Customizing: Collateral Types



In Customizing, you define the name of the collateral types to be used in the application. When you
assign a corresponding collateral type, the relevant entry screens are defined.
Collateral types with category 1 (encumbrance, own rights in section III), or 11 (assigned
encumbrances) can only be used in the application with an object for entering encumbrances.
Collateral types with other categories are only available with the other collateral objects.
An exception to this is collateral category 50 (main collateral). A collateral type with this category
can be retained in the loan basic data for information.

(C) SAP AG AC815 10-47
SAP AG 1999
Filed
documents
Collateral
Objects
Credit standing
calculation
Partner
Collateral
value
New business
table
Loans
Master Data - Filed Documents




(C) SAP AG AC815 10-48
SAP AG 1999
Master data
- Create
- Change
Create/Change loans
Objects
Collateral
File
Master data
- Create
- Change
- Assign
Master data
- Create
- Change
- Assign
Master data
- Create
- Change
- Assign
Master Data - File Procedure



Master data for objects (as well as collateral and files) can be created separately to a loan. From a
loan (application, offer, contract), you can access existing master data; this can be assigned to one or
more loans.
Alternatively, you can create master data from a loan and this is then assigned to the appropriate loan
automatically.
File management in the R/3 System is similar to a file checklist. The file contains a checklist that
lists the documents in the real, physical file.
In the file, you can only maintain the basic data as pure master data. When you enter the document
information, you have to assign it to one or more loans.
To create a file from a loan, you have to first save the loan; you need a loan number to assign the
file.
You can only delete a file if no loan has been assigned to it.

(C) SAP AG AC815 10-49
SAP AG 1999
Filed documents
File 1
File number
= File name
File 2 File 3
Borrower A
Loan A1 Loan A2 Loan A3
Borrower B
Loan B1 Loan B2 Loan B3
File 4
Master Data - Procedure



The filed documents are all documents that you create in the system. Each individual file is
identified by a file number (the file name).
You specify the file in the loan data (correspondence).
You can create a file for each loan; or one file for each borrower, where you specify the file name in
all of this borrower's loans; or you can create a file for all business partners.


(C) SAP AG AC815 10-50
SAP AG 1999
File name
Type of file
Creation date
File storage loc.
File basic data
Borrower
Lending date
Lend.loc.
File borrowing data
File number
Create documents
Brown Brown Brown
BROWN - MORTGAGE LOAN
01
04/09/YY Ent. by Smith
File archive
Documents (overview)
File: Create File: Basic Data



When you create a file, you can branch to the checklist via Create documents.
In Customizing, you define the layout of the checklists and which checklist should be displayed for
each product type and in which status.
If you have maintained information for the individual documents, via Documents overview, you can
display the documents that you have already processed. Via Create documents, you can then branch
to the documents that you have not yet processed.


(C) SAP AG AC815 10-51
SAP AG 1999
Selection of Documents to be Created for Status/Contract Selection of Documents to be Created for Status/Contract
File number BROWN
Dty. Document name DSt. Assign contract
1 Loan application
2 Cost sheet
3 Financing plan
4 Personal voluntary disclosure for co-applicant
5 Salary statement for the last 3 months
6 Annual earnings statement from previous year
7 Income tax assessment from previous year
8 Balance sheets with P+L for the previous years
9 Income tax assessment for the last 2 years
10 Rental agreements
:
2
2
2
2
2
2
2
2
2
0
x
x
File: Checklist



On this screen, you select the documents for which you want to maintain information.
The document status (DSt.) informs you, for example, whether the document type is complete (2),
not complete (1), or does not exist (0).
If you have assigned a file to several loans, via Assign contract, you define whether the information
from the relevant document type is applicable for this contract only, or for all loans belonging to this
file.




(C) SAP AG AC815 10-52
SAP AG 1999
Document type
Direction
DocStatus
Storage ID
Storage location
Entry date
..
Assignment
..
Notes
Document on file
File number
F4 F4
F4 F4
DType Document name
0001 Loan application
0002 Cost sheet
0003 Financing plan
0004 Personal voluntary disclosure
0005 Salary statement for ...
: :
DType DType Document name Document name
0001 0001 Loan application Loan application
0002 0002 Cost sheet Cost sheet
0003 0003 Financing plan Financing plan
0004 0004 Personal voluntary disclosure Personal voluntary disclosure
0005 0005 Salary statement for ... Salary statement for ...
: : : :
Indicator
1 File archive
2 Vault
3 Central register
Indicator Indicator
1 1 File archive File archive
2 2 Vault Vault
3 3 Central register Central register
Brown Brown Brown
File: Supplement Checklist



If the checklist does not contain all of the document types relevant in this case, you can add
document types; the list of document types is defined in Customizing.

(C) SAP AG AC815 10-53
SAP AG 1999
Document overview Document overview Document overview
File number BROWN File number BROWN
DType Document name DSt R Date
1 Loan application
2 Cost sheet
2
0
R
I 04/15/YY
Missing documents
2
2
2
2
2
2
2
2 Cost sheet
3 Financing plan
4 Personal voluntary disclosure for co-applicant
5 Salary statement for the last 3 months
6 Annual earnings statement from previous year
7 Income tax assessment from previous year
8 Balance sheets with P+L for the previous years
9 Income tax assessment for the last 2 years
10 Rental agreements
:
2
0
File: Document Overview



If you have maintained information for the individual documents, via Documents overview, you can
display the documents that you have already processed.
Via Missing Documents, you can display all documents (processed and unprocessed) that are not
identified as complete.

(C) SAP AG AC815 10-54
SAP AG 1999
Master Data -> Filed Documents
Company Code-Dependent Settings for Product Type -->
Status per Product Type
File Type
File Storage Location
Define Document Types
Define Document Groups
Assign Document Types to Product Groups
(and Document Groups)
Customizing: Filed Documents




(C) SAP AG AC815 10-55
SAP AG 1999
DTyp Document name Direction of doc.
1 Loan application
2 Cost sheet
3 Financing plan
4 Personal voluntary disclosure for co-applicant
5 Salary statement for the last 3 months
6 Annual earnings statement from previous year
7 Income tax assessment from previous year
8 Balance sheets with P+L from previous years
9 Income tax assessment for the last 2 years
10 Rental agreements
:
R
I
I
E
E
E
E
E
E
E
Customizing: Document Types



You define all document types that you want to use with a loan.
In Customizing, you define the direction of the document flow. This is displayed in the checklist in
the application for information purposes.

I: Internal
A: Outgoing
E: Incoming
R: Return (outgoing and incoming)
S: Others


(C) SAP AG AC815 10-56
SAP AG 1999
DGr Text
1 Application documents
2 Offer documents
3 Contract documents
Customizing: Document Groups



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


(C) SAP AG AC815 10-57
SAP AG 1999
Document
group 1
Document
group 2
Document
group 1
~~~~~~~
~~~~~~~
~~~~~~~
~~~~~~~
~~~~~~~
~~~~~~~
~~~~~~~
~~~~~~~
~~~~~~~
~~~~~~~
~~~~~~~
~~~~~~~
~~~~~~~
~~~~~~~
~~~~~~~
~~~~~~~
~~~~~~~
~~~~~~~
~~~~~~~
~~~~~~~
~~~~~~~
Document types
Product type A Product type A Product type B
Customizing: Assign Document Types



You assign document types for a specific document group and product type.
This determines which documents belong to which document group and which product type the
documents should be used for.
Note: You should only assign the document types required for all loans with the particular product
type. You can create additional document types required in individual cases in the application
individually in the respective file.

(C) SAP AG AC815 10-58
SAP AG 1999
Entry 1 of 9
CS DGr
1
Status name Int. level
1
Company code
Product type
0001
30A
31
20 2 33
31 1 32
34 2 34
37 3 37
60 3 35
Contract offer completed
Contract completed
Contract
FI CG AFS
x
x
x
x
x
x
3
3
Contract offer
Applicncompleted/deleted
Application
Field selection
x
Company code-dependent settings for product type - status per product type
Customizing: Status - Document Groups



Finally, you define the checklist to be used in each company code and for each status, that is the
document group, for the product type.


(C) SAP AG AC815 10-59
SAP AG 1999
Loan
partner
00
Loan contract
File number
Loan partner 00
File created
...
43 Loan contract R
Document overview
Correspondence created and stored
(for example, loan contract)
Details
Button
Access to optical archive
Optical archive
Optical Archiving of Correspondence



You can archive loan correspondence that you create optically if the following conditions are
fulfilled:
Loan Customizing
Basis Customizing for archiving
The document to be archived has a spool request number
The document to be archived is an original document (not a copy)
A file has been assigned to the loan
When you create correspondence, for archiving purposes, you must select "Print and file" on the
main spool screen in file mode. You can then archive the correspondence created optically. You can
access the archived documents via the file. From the document overview, go to the detail screen.

(C) SAP AG AC815 10-60
SAP AG 1999
Loans Customizing
- Create document types, direction A (outgoing) or R (return)
- Assign the document to be archived to the document type
- Activate archiving
Basis Customizing
Basis Components --> Basis Services --> SAP ArchiveLink -->
Basic Settings --> Maintain Links
Customizing: Optical Archiving



Loans Customizing:

- Create document type: Master Data --> Filed Documents --> Define Document Types

- Document: Functions --> Correspondence --> Define Documents

- Activate: Basic Settings --> Installation Parameters
Basis Customizing for archiving:

- Value of object type field "BUS1170

- Value of document type field "VDOxxxx", xxxx indicates the document group.

(C) SAP AG AC815 10-61
SAP AG 1999
New business
table
Collateral
Objects
Credit standing
calculation
Partner
Collateral
value
Filed
documents
Loans
Master Data - New Business Table




(C) SAP AG AC815 10-62
SAP AG 1999
Table
Effective from
HYP_01
05/01/YY
YY 05 001
Rnk
001
Fxd int.
2 Y
DRate %
98.00000
Nom. int.
Repayment
6.00000
4.00000
Ref. int.
Rep. sett.
PF
PF
PE
PE
Frq
3
3
Frq
IS
IS
+/-
PF
EIM
1
PE
ICM
Frq
IS
x
Variants
Contract: Conditions Contract: Conditions
Items
Nominal interest
Annuity repymt
6.00000
4.00000
3
3
x
x
Conditions table
1
05/31/YY
Effective to
New Business Table



You can let the system enter the condition items for a contract offer automatically on the basis of
predefined conditions in a new business condition table. Condition tables allow you to avoid input
errors, thus simplifying the later steps in the loan process.
In the loan, choose the function Conditions table, and select the relevant table with the corresponding
condition variants. You can only use tables where the Fixed from date of the loan lies within the
validity period.
You can deactivate or delete new business tables. You can also display deactivated tables and use
them as a reference for creating new tables. Deleted tables can only be displayed.
You cannot reactivate or delete activated tables.
If the release procedure is active for new business tables and you release a table, it can only be
deactivated, not deleted. If the release is active, but you have not released the table, or the release is
not active, a table cannot be deactivated, it can only be deleted.
If you specify an authorization group in the new business table, only employees with the
corresponding authorization group may process the table.

(C) SAP AG AC815 10-63
SAP AG 1999
1. Functions -> Process Management
Activity type 'N' has to be maintained!
FCat Flow category CTyp
TTAN Annuity repayment 261
TZ Nominal interest 201
2. Transaction Management -> Condition Types ->
Define Condition Types for New Business Table
Activity type N New business
Customizing: Condition Tables



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

(C) SAP AG AC815 10-64
SAP AG 1999
- Create loan
- Business partner
- Conditions
- Correspondence
- Disburse/post loan
- Integration with CM
- Integration with FI
- Post amounts due
- Incoming payment (post)processing
- Accrual/deferral
- Valuation
- Summarization
- Information system
- Special cases
- Rollover
- Master data
- Complete process
Interest. Appl. Offer Contract Disburse Disburse- - Other Other Rollover Rollover
party ment ment activities activities
Decision-making
Transaction management Portfolio/Accounting
Mortgage Loans - Processing Seq./Contract




(C) SAP AG AC815 10-65
SAP AG 1999
Interested
party
(request)
Interested Interested
party party
(request) (request)
Delete Delete Delete Reactivate Reactivate Reactivate
Change Change
Display Display Create Create
Interested Party: Function Overview



The function Interested party contains the basic data maintenance for a customer loan application.
You maintain the person making the application as a business partner in the role Interested party in
the system.
You can fix the following application data:

- Company code

- Capital required

- Product type

- Application of funds

- Date of application

- Rejection data
If you have entered an application for an interested party in the system, you cannot enter a new
application until you have processed the first application further.

(C) SAP AG AC815 10-66
SAP AG 1999
Interested party already in system as a partner?
Basic data
Interested Party: Create Interested Party: Create Interested Party: Create
Company code
RequestedCap
Product type
Purpose of loan
Acceptance type
Application date
Reserved until
Contact person
Mortgage loan
House building
In person
Rejection
Non-acceptance
Rejection on
Reason
150,000.00 UNI
0001
30A
01
03
03/01/YY
04/15/YY
Smith
- Create partner
- Assign role
No
Yes
Interested Party



When you enter an application for a business partner, the system checks whether the role category
Interested party has already been assigned to this partner. If it has not been assigned, this role
category is automatically assigned to the business partner when you create the application.

(C) SAP AG AC815 10-67
SAP AG 1999
Contract
Transfer to offer Transfer to offer
Change Change Waive Waive Reactivate Reactivate Display Display Create Create
Application
Change Change Waive Waive Reactivate Reactivate Display Display Create Create
Transfer to Transfer to
contract contract
Contract offer
Change Change Waive Waive Reactivate Reactivate Display Display Create Create
Application/Offer/Contract - Function Overview



The different statuses for a loan reflect the contract acquisition process. The three most important
statuses are Application, Offer, and Contract (interested party is not a status).
When you create an application, you can transfer the data to an offer or a contract.
If an offer exists, you can transfer the data to a contract.
You define the procedures, that is, the status combinations permitted, in Customizing.
The entry screens for applications, offers, and contracts are basically the same. You are free to
decide which data you maintain in each status.

You usually enter the information that forms the basis for the credit decision in the application, for
example, collateral entered, objects assigned.

The conditions are usually defined when you create an offer.

When you transfer a contract, you should enter all relevant data.



(C) SAP AG AC815 10-68
SAP AG 1999
Transfer Transfer
to contract to contract
Transfer Transfer
to offer to offer
Applicn Applicn
Create Create
Change Change
Display Display
Waive Waive
Reactivate Reactivate
Full waiver
Application: Function Overview



If a customer makes a loan application, and then withdraws the application, you can deactivate the
data you entered by waiving the application. When you enter a waiver, you can no longer use the
application data for further processing; you can however, display it.


(C) SAP AG AC815 10-69
SAP AG 1999
Sample loan
Company code
Loan number
Product type
Reference
Sample loan no.
Partner
0001
/internal/
30A
Create Loan: Initial Screen



The screens for entering applications, offers, and contracts all have the same basic layout. In
Customizing, you can use the field selection to control how fields are processed in each status.
If you want to create a loan (application, offer, contract), there are 3 options:
1. Create all the master data.
2. Transfer the data from a sample loan. You can create a sample loan using the Sample loan
function. The data is entered in the same way as for a "standard" loan, but without a business partner.
If you want to use a sample loan to create a new loan, enter the corresponding data in the reference
section.
3. Copy the data from a standard contract you have already created. Choose Copy from... . A dialog
box appears prompting you to define the contract from which data should be copied.

(C) SAP AG AC815 10-70
SAP AG 1999
Create Contract: Initial Screen Create Contract: Initial Screen Create Contract: Initial Screen
Company code
Loan number
Product type
0001
/internal/
33A

Business partner selection


Role category main borrower
E N T E R
Loans - Initial Screen




(C) SAP AG AC815 10-71
SAP AG 1999
Basic data
Basic 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.
Contract - Basic Data




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Contract Contract
offer offer
Change Change
Create Create Display Display
Contr Contr. acceptance . acceptance
Offer waiver Offer waiver
Reactivate Reactivate
Partial
waiver
Full waiver
Offer: Functions Overview



You can create offers, or transfer data from an existing application.
If the customer rejects the offer, this is entered in the system as a full waiver.
If the customer accepts the offer, but requires less capital, you can enter the loan reduction as a
partial waiver.
If the customer agrees with the offer, you can transfer the data to a contract via Contract acceptance.

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Transfer to Transfer to
offer offer
Create offer(s) where
necessary
(offer proposals/variants)
Application
No. 10000001 No. 10000001 No. 10000001
Contract
Offer Proposals



You can enter several offer proposals or variants for each offer that you create.

Example: The customer requires an offer for a mortgage loan of 100,000.00 UNI.
You present the following offer with three variants:

1. 100,000 UNI, 2% discount, 3% fixed interest, repayment in monthly instalments.

2. 100,000 UNI, no discount, 4% fixed interest, repayment in monthly annuity repayments.

3. 100,000 UNI, 1% discount, variable interest EURIBOR + 2%, repayment in monthly instalments.
If the customer decides to take the loan, you can transfer one offer variant to a contract.

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Basic data
Basic 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.
Offer - Basic Data




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Loans basic data Loans basic data
Condition header
Cash flow Cash flow
Condition items
Planned records
------------------------------------------------------
Configuring Conditions




(C) SAP AG AC815 10-76
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Further processing
completely or
partially rejected
Contract
offer
Full waiver
Contract
offer
Partial waiver
Contract
offer
10,000 UNI
Waive Contract Offer





(C) SAP AG AC815 10-77
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Non-accept. reason
Rejec./waiver on
Company code
Loan number
Borrower . .
0001 Mortgage loans
Contract offer
30A
20
General
02 Competitor's conditions better
11 Incorrect entry in offer
Status
Prev. status
New status
Contract offer
Contract offer completed
20
34
The loan is inactive - can only be displayed
Full Waiver



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


(C) SAP AG AC815 10-78
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Company code
Loan number
Borrower . .
0001 Mortgage loans
Contract offer
30A
20
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
Calc. date 04/15/YY 10,000.00
Amount
In the loan: Condition item "Capital reduction" added automatically
Partial waivers
Contract data
Partial Waiver



If the customer accepts an offer, but not for the full amount, you have two options for entering the
waiver of part of the capital:

1. You can reduce the commitment capital in the loan in the condition header. Disadvantage: The
history is not immediately visible.

2. You can use the Partial waiver function. The commitment capital is retained in the loan; a new
condition item is added automatically using the capital reduction. The cash flow, and all other
calculations, are based on the reduced capital.


(C) SAP AG AC815 10-79
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Contract Contract Contract
One contract offer One contract offer One contract offer
Create Create Change Change Display Display Waive Waive
Transfer Transfer
Create Create Change Change Display Display Waive Waive Reactivate Reactivate
Contract Offer/Contract - Functions Overview





(C) SAP AG AC815 10-80
SAP AG 1999
USER LEVEL
Product Product
category category
Flow category Flow category Calculation Calculation
category category
Condition type Condition type
SYSTEM LEVEL
Status Status
category category
Product type Product type
Condition group Condition group
Status definition/ Status definition/
status transfers status transfers
Flow type Flow type
Customizing Structure: Loans




(C) SAP AG AC815 10-81
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Entry 1 of 9
CS DGr
1
Status name Int. level
1
Company code
Product type
0001
30A
31
20 2 33
31 1 32
34 2 34
37 3 37
60 3 35
Contract offer completed
Contract completed
Contract
FI CG AFS
x
x
x
x
x
x
3
3
Contract offer
Applicncompleted/deleted
Application
Field selection
x
Company code-dependent settings for product type - status per product type
Customizing: Status Definitions



CS: Contract status: In Customizing, you must define the statuses you want to use in your company
(application, offer, contract, waiver). The system uses the internal status (internal level) to control
processing.
DGr: The document group determines the checklist that can be processed for loan documents in the
respective status.
FI: If the value "3" (FI posting to a customer account) is entered in this column for a particular
status, this is the first status in which postings can be made to a customer account (or to a G/L
account, see product type). If no customer account exists for the business partner, the system also
generates a customer account. If the value "4" is entered in this column, this is the first status in
which postings can be made (not to customer accounts).
AFS: Alternative field selection. You can either make the field selection control settings for the
product type (the settings then apply for all statuses for this product type), or for each status of a
product type (for example, if you want to use the fields differently in application and contract status).
If the indicator in this column is set, field selection control applies per status. If the indicator is not
set, the field selection settings apply for all statuses of a product type.
CG: Generate cash flow: The system saves the loan data to the database for the first time when a
disbursement is saved or posted. If you require database records beforehand, you can set the CG flag
for an earlier status. The system then writes the loan records to the database when the loan reaches
this status. (This is relevant, for example, for calculating commitment interest).

(C) SAP AG AC815 10-82
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Position... Entry 1 of 9
PrevStat. Status name
0
Status name New stat.
Application
Company code
Product type
0001
30A
1
0 Contract offer 20
0 Contract 60
1 Application 1
1 Contract offer 20
1 Application waived/deactivated 31
20 Contract offer 20
20 Offer waived/deactivated 34
20 Contract 60
Application
Application
Application
Contract offer
Contract offer
Contract offer
Company code-dependent settings for product type - status tfrs per product type
Copy stat. trans.
Transfer matrix of external statuses
Customizing: Status Transfers



For each company code, you define the permitted status transfers for each product type. This
controls the processing steps permitted in the loan processing.

Example: "Previous status 0" to New status 20" means that you can create an offer manually.

You can reflect every business process required by selecting the relevant status transfers for your
business. Transfers that are not defined are included as not permitted.
To carry out change transactions for a permitted status, you have to create an entry where the
previous status is the same as the new status.

Example: If an offer is changeable, you define the following:
Previous status 20 - new status 20.
The graphic above shows the maximum possible status transfers. This setting is not relevant in
practice and should be adjusted to correspond with the organizational processes in the business
during system implementation.

(C) SAP AG AC815 10-83
SAP AG 1999
1
Application
Transfer to
Contract
Transfer to
Offer
2
Offer
Transfer to
Contract
3
Create contract
4
Application
Transfer to
Contract
Application
Contract
Contract Offer
Decision-
making
5
Contract- 5 Ways to Enter Contracts in the SAP
System



In addition to the 4 options already explained, you can also use decision-making to enter a contract
in the system.
Decision-making is a special way of creating an offer, and is supported in the mortgages area.
When you select the Decision-making function, the offer data, the main object information entered
with the offer, the collateral value determination, and the credit standing check are displayed on a
screen in compressed form.
Information used for deciding on the offer is therefore available at a glance.
Decision-making refers to how you can or must continue processing from the Application status.
If decision-making is active in Customizing, offer data can only be processed further using this
function. If decision-making is required, procedures 1 and 4 are excluded.
If decision-making is not active, you can still use it. Procedures 1, 4, and 5 are possible.
Irrespective of whether decision-making is active or not, procedures 2 and 3 are always available.


(C) SAP AG AC815 10-84
SAP AG 1999
Decision-making
Transfer Transfer
to contract to contract
Transfer Transfer
to offer to offer
Applictn Applictn
Create Create
Change Change
Display Display
Waive Waive
Reactivate Reactivate
Full waiver
Application: Decision-Making





(C) SAP AG AC815 10-85
SAP AG 1999
Decision Decision- -making: making:
Offer(s) Offer(s)
Collateral value
Application data
Credit standing calctn
Decision-Making - Overview



The following data is included on the decision-making screen:
- Application data
- Data for the collateral value determination for the main object.
(If several calculations are carried out, in the dialog box, select the data to be included in the
decision-making. All calculations are displayed, irrespective of whether they are fixed or not;
short versions are only included if they are created using form type 0101 (--> Customizing)).
- Data for the credit standing calculation. The data of the last calculation is displayed, irrespective
of how or when the data was fixed. If there are calculations with different types of forms, in the
dialog box, select the calculation to be included in the decision-making.


(C) SAP AG AC815 10-86
SAP AG 1999
Decision base
Company code
Application no.
Prop.prime costs
Credit stand.surp.
Exist. commitment
Application
Application capital
Of which %
Of which %
Debt service
New commitment
UNI
Contract F PTyp LTyp Commitm.cap. Stat. Nom.int. Disb. Term end
Loan for application
Brown/ 1 Main Street / Washington DC 20433
Loan purpose 01
60
40
House construction
500,000.00
500,000.00
250,000.00
300,000.00
200,000.00
3,350.00 63.729
30A 150,000.00
0001
10000000
Object data
Decision-Making



After you enter the application number, the application data, object data, collateral value data, and
credit standing check data is imported.
The debt service percentage means: 63.729% of the total net income is used for existing loans (from
you and other lenders).
Using the appropriate functions, you can transfer the application data to offers or contracts.

(C) SAP AG AC815 10-87
SAP AG 1999
Application
Create offer(s) where
necessary
(offer proposals/variants)
Create several offer(s)
for each offer
where necessary
(offer proposals/variants)
Without decision-
making
With decision-
making
Contract
Contract
1000001
1000002
1000003
1000004
1000003
1000001
1000001
Transfer Transfer
to offer to offer
Transfer to Transfer to
several offers several offers
Offer Creation - Options



If you carry out processing without using decision-making, you can create one offer, but enter
several proposals. Only one proposal can be transferred to a contract.
The application, offer, and contract are managed with the same number in the system. This means
that no history is available. If the contract exists, offer and application data is no longer visible.
If you carry out processing with decision-making, you can create several offers and several proposals
for each offer. Only one proposal can be transferred to a contract.
The application, the accepted offer/contract, and the offers not accepted are all managed with
different numbers in the system. This means that a history is available. If the contract exists, the
application data and the data of the offers not accepted is visible.

(C) SAP AG AC815 10-88
SAP AG 1999
Data
Further processing
- Loan master data
- Business partner
- Object
- Decision-making
- New business table
- Business operations
- Capital transfer
- Reversal
- Incoming payment postprocessing
- Disbursement
Release
Release in Loans



The release report is triggered by the release workflow:
Staggered release procedure for most functions in master data and flow data processing in
accordance with the security principle requiring at least dual control.
Release objects:
1 Flow data: Business operations*, capital transfer, reversal, incoming payment postprocessing,
disbursement.
*(3 Release objects: Entering charges individually, entering charges as business operations,
unscheduled repayment)
2 Central master data: Loan master data, business partners, objects.
3 Other master data: Decision-making, new business table (new business table and rollover table!).
Generic workflow functions:
Definition of maximum times for work items: Acceptance, processing, run.
Creation of storage
Forwarding
Resubmission
User-specific adjustment of workflow, for example, with regard to
Runtimes
Setting up user control as work item references for processors required (user determination via
release object, company code, release level, product type) (see also the documentation under BC-
Basis -> SAP Business Workflow).

(C) SAP AG AC815 10-89
SAP AG 1999
SAP Menu SAP Menu
Office Office
Workplace Workplace
Workplace: User ABC Workplace: User ABC
Inbox Inbox
Unread documents 5 Unread documents 5
Workflow Workflow 2 2
Inbox
Classif. Title Date of entry
Rel: Disbursement - Loan 1000007 ....DD.MM.YYYY
Rel: New business table "Hyp".... DD.MM.YYYY
Release: SAP Business Workplace




When you create or change a release object, a new workitem is created and the release procedure is
started. The person authorized to release receives the workitem in his business workplace
automatically for further processing. The release procedure only has to be triggered manually for
decision-making.
The objects to be released are displayed as workitems in a table that is output via the ABAP List
Viewer.
For each workitem, you can
- Display the release history (date and time the object was created or changed; details of the user
that created, changed, released the object; release status).
- Display the release object
- Change the release object; you then have to release the object again.
- Release the release object
- Reject the release object; it appears as a workitem in the inbox of the person that started the
workflow.

(C) SAP AG AC815 10-90
SAP AG 1999
Release object Long name Cat. Created by
BUSOP Disbursement of loan 1000007 F user 123
...
Report for output of a release workflow overview
- Selection by release objects on current date
- Output via ABAP List Viewer
- Display of relevant loans and company codes per object, as well as,
for example, release and processing status of the workitem.
Overview of Workitems Loan



The monitoring report in the information system can be used to provide information about the release
objects (business release: Loan workitems). The report can be used to determine where a workitem is
located in the processing chain.

(C) SAP AG AC815 10-91
SAP AG 1999
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)
Result of Complete Release




(C) SAP AG AC815 10-92
SAP AG 1999
+
- Loans
Basic Settings
Transaction Management -
-
Release
Main. Active Inds
Def. Rel. Stat. Par.
Adj./Copy WF Tem.
Rel. Obj. CoCd Cont. stat. PTyp Curr.ReSt. Act.
BPAR 01 11
VDARL 0001 30A 11
Rel. Obj. Name Active
AUSZ Loan cont. Disb.
Customizing: Release



In order to use the release, you have to activate the relevant release objects, specify the release status
parameters for each object, and adjust the workflow template.


(C) SAP AG AC815 10-93
SAP AG 1999
Rel. object Name Short text Active
BPAR Business partner Partner
AUSZ Loan contract disbursement Disbursement x
Release: Object



You have to define the release objects for which the release procedure in Loans Management should
be active.
If the release is active for master data objects (loan master data, data for the business partner
assigned, collateral object), this data has to be released before you can carry out postings such as
status changes.
If the release is active for flow data objects (business operations, capital transfers, reversal, incoming
payment postprocessing, disbursement), you cannot create a new flow record for this loan until you
release the first one.
For a loan, you have to release the master data before you can release flow data.

(C) SAP AG AC815 10-94
SAP AG 1999
Name D ReSt
D
D
D
D
D
D
D
D
D
D
D
D
D
D
D
0
10
11
20
21
22
30
31
32
33
40
41
42
43
44
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
Release: Names



The release status provides you with information about the current status of a business operation to
be released.
The first character corresponds to the number of people required for the release.
The second character indicates the number of releases that have to be carried out.

If both characters are identical, the user that created or changed the object that is to be released can
carry out the (first) release. If both figures are different, only another user can carry out the release.
The release statuses are fixed in the system.


(C) SAP AG AC815 10-95
SAP AG 1999
Rel. object
Co
Cd
Status
Limit amnt Curr. ReSt Active
AUSZ
AUSZ
TR00
TR00
30A
33A
11
x
100.000 FRF 32 x
Product
type
Release: Parameters



To use the release procedure, you have to specify the object to be released and assign the release
status parameters (as well as activating the release object).
The release status can be activated as a general release obligation for all business operations; you can
control the procedure further based on the company code (and possibly also the status, product type,
and currency).
Example: The above entries mean: In company code TR00, you have to release all disbursement
postings that refer to loans (product type 30A) once; disbursements from general loans (product type
33A) activated in contract currency FRF have to be activated three times (de facto twice) if the
posting amount is equal to or higher than 100,000 FRF.
You do not have to release any other business operation postings.
If several valid entries exist for one case, the highest release status is relevant.

(C) SAP AG AC815 10-96
SAP AG 1999
Company code
Cross-company code
Contract number
Name of main borrower
Selection via contract number
With open items
With other contracts
Portfolio: Loans to Partner



Using the report Loans to partner, you can select and process loan contracts with reference to
specific partners or contracts.
If you carry out the selection for specific loans, the system branches to the contract data display.
From there - depending on the authorizations assigned - you can branch to the functions Change
contract, Disbursement, Unscheduled repayment, Enter charges as business operations, and Enter
charges individually.
If you carry out partner-based selection, the system first determines all partners that are linked to the
specified partner via the relationship type "alias". All the contracts to which this partner is assigned
as main borrower are determined for the partners determined in this way. The system outputs the
partners and contracts determined. By selecting a specific contract number, you can branch to
further contract processing.

(C) SAP AG AC815 10-97
SAP AG 1999
Evaluation Evaluation
Complete overview of loans
Total commitment per
partner
Loan commitment
Information System: Portfolio - Evaluations



The complete loan overview displays the most important data for a loan contract. You can display
open items for specific contracts. The following data is evaluated: Contract data, capital amounts,
dunning data, bank details, payment data, and contract conditions.
The total commitment per partner report contains the details of the commitment capital, the valuated
capital, and remaining capital for individual loans for a business partner.
You can access the total commitment overview from a loan via Extras (key date: Today), or - with
more selection criteria - via the information system (any key date possible). Here you have the
option of evaluating only posted amounts, or also planned records; you can evaluate only those loans
with status Contract, or also including offers.
The loans commitment accesses the data for the selected loans for all business partners.

(C) SAP AG AC815 10-98
SAP AG 1999
Number ranges for:
Loan number
Collateral object
Collateral value determination
Collateral
Business operation
Interested party (request)
Rollover number
.................
Loans: Customizing for Number Ranges



The data maintained in Loans Management is usually saved with its own number in the system. You
have to create number ranges for each of the different types of data.
Some objects require specific entries, for example:

- Specific number range

- Numeric or alphanumeric

- External or internal number assignment. For more information about the individual requirements,
see the Customizing documentation.

(C) SAP AG AC815 10-99
SAP AG 1999
Basic data
Basic data
Assignment/internal reference/characteristics
Alternative 1/alternative 2
Reference
CON SWIFT confirmation files
OPT Derivatives option reference
REF General reference
SWP Foreign exchange swap
Business 1
Business 1
Additional fields
Other references
User fields
Group keys
References



In order to document the relationship between business operations, you can define appropriate
connections for an operation.
The basic data for a loan contains additional fields, other references, group keys, and user fields
that you can assign as required. The data entered and held here is used for information purposes;
you can evaluate the data for the additional fields, other references, and group keys via drilldown
reporting. (Note: You define the user fields in Customizing).
A "reference" between Treasury business operations documents a relationship between "n"
objects, that is business operations (money market trading, foreign exchange, derivatives,
securities), and contracts (loans). You create this object link with a reference type that controls the
processing of a reference.
There are references that are created automatically, for example, relationships between business
operations that are components of a closing operation (foreign exchange swap).
There are also references created explicitly by the user, for example, the "general reference".
You can access information about existing references from a business operation, for example, loan
contract, via Object links.


(C) SAP AG AC815 10-100
SAP AG 1999
Use the options for managing contract acquisition
data in the system (application, offer, decision-
making)
Use the options for managing additional loan data
You are now able to:
Complete Process Including Master Data: Unit
Summary




(C) SAP AG AC815 10-101
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.
1 Create a credit standing calculation for your borrower (Loan partner XX). Save
the borrower in the role of Credit standing check. Use calculation form 0001.
1-1 What is the result of the credit standing check (income - financial
commitments) for your business partner?
1-2 Does a surplus or a deficit arise?

(C) SAP AG AC815 10-102




Unit: Complete Process Including Master Data
Topic: Collateral objects


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).
2 Create a collateral object. Enter an address for this object.
2-1 Maintain a land register for your object.
2-2 Create two building parts. Define one for commercial use and one for
residential use. Maintain units and areas for your building parts. Display the
totals for your object.
2-3 Define "Loan partner XX" as the owner of the object.
2-4 Maintain an entry for your object in the real estate register for the land
register. Display an overview of the master data fields for sections I/II/III of the
land register. Define at least one encumbrance in section III.
Save the object and make a note of the number.

(C) SAP AG AC815 10-103




Unit: Complete Process Including Master Data
Topic: Collateral value calculation


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.
3 Check whether all the relevant entries have been made for your collateral object
(see the collateral object exercise), and make changes where necessary.
4 Create an interim collateral value calculation for your collateral object.
4-1 Calculate the building value.
To do this, first calculate the value of the building parts. Maintain these values
(price, depreciation).
Display the building value again. Have the details for the building parts been
transferred correctly?
Maintain the missing details for calculating the building value (for example,
garages, external areas, collateral markdown).
4-2 Calculate the land value. Have the details for the land been transferred
correctly from the real estate register?
4-3 Calculate the revenue value.
First, calculate the revenue value for the building parts. Maintain the values for
the rental revenue. Go back to the revenue value calculation. Have the details
for the building parts been transferred correctly?
Maintain the missing details for calculating the revenue value.
4-4 Maintain the remaining data for the collateral value calculation (in
particular, a proposal basis).
4-5 Fix the collateral value. Specify the amount of the final collateral value and the
valuation basis.


(C) SAP AG AC815 10-104


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

(C) SAP AG AC815 10-105




Unit: Complete Process Including Master Data
Topic: Collateral and files


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.
5 Create an endowment policy as collateral and maintain the master data for the
policy.
5-1 Assign loan partner XX to the collateral as policyholder.
5-2 Maintain the cash surrender value for the current date.
5-3 Enter special arrangements for loan partner XX from the neighboring
group.
Save the collateral and make a note of the number.
6 Create a file for the documents from loan partner XX. The file is currently in the filing
cabinet.
Save the file and make a note of the number.



(C) SAP AG AC815 10-106




Unit: Complete Process Including Master Data
Topic: Interested party inquiry


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.
7 Create an interested party (prospective customer) in the system. Use the
business partner that has already been created for your group (Loan partner XX).
The business partner is interested in taking out a mortgage loan of 250,000 UNI with
your company (company code TRXX). Enter the product type (30A), the purpose of the
loan, and how the borrower contacted you.
You want to reserve the inquiry for four weeks.
Save the inquiry.

(C) SAP AG AC815 10-107




Unit: Complete Process Including Master Data
Topic: Application


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.
8 Create a mortgage application. Enter your company code, TRXX, and the
corresponding product type, 30A. Use the same business partner, but this time in the
role of Main borrower.
8-1 The system transfers the information you have already entered for the
interested party to the application. If necessary, you can make changes to this
data. Enter the following additional details for the loan application:
Loan type: 1A loan
Term of the loan: Maturity > 10
8-2 Assign the corresponding object for the business partner to the
application. You can search for the object using a detailed matchcode search by
master record, address, and land register data.
8-3 Look at the object data and the collateral value calculation that has
already been carried out for the object. How high is the proposed collateral
value for the object?
Look at the existing entries in section III of the land register.
8-4 Enter an encumbrance in the same amount as the nominal amount of the
loan.
8-5 Assign the endowment policy to the encumbrance as collateral. You can
search for the collateral using a detailed matchcode search. If you have
forgotten the number of your collateral, search for it using collateral type 2000.

(C) SAP AG AC815 10-108
8-6 Then link the file that you created to the application using the matchcode
search for the field File number.
Save the application.
8-7 In your file, note that the following documents already exist:
Loan application
Salary statement for the last three months
Tax assessment for the previous year


(C) SAP AG AC815 10-109
Solutions



Unit: Complete Process Including Master Data
Topic: Credit standing check
1 Create a credit standing check:
Accounting
Treasury
Loans
Master Data
Business Partner
Credit Standing Calculation
Create
Dialog box: Choose partner

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.

(C) SAP AG AC815 10-110




Unit: Complete Process Including Master Data
Topic: Collateral objects
2 Create a collateral object:
Accounting
Treasury
Loans
Master Data
Objects
Create
Dialog box: Choose address




Specify the address for your object in as much detail as possible.



The system then checks this address against all the addresses in the
central address management. The fewer details that you specify, the
longer the search will take. If the system does not find your address,
you can create a new address.

2-1 Maintain the land register:
Tab: Basic data




Enter the name of the land registry in the corresponding field (do not
use the possible entries help).


In this field, you can either enter a text, or use the possible entries
help to select a land registry. For this course, enter a text. You use
the possible entries help for the field if you want to create
correspondence.

(C) SAP AG AC815 10-111


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

2-2 Create a building part:
Tab: Parts of building



Select the Create building part icon. You can create additional new
building parts, or copy the first one that you created.
You can display the totals for all building parts.

Building part 1 (SFH)
Field name or data category Value
Usage type 1 (privately-financed
accommodation)
Building part type 1 (SFH)
Unit 1
Garages 1
External area For example, 100
Area collateral value For example, 200
Cubic area collateral value For example, 600


(C) SAP AG AC815 10-112
Building part 2 (warehouse)
Field name or data category Value
Usage type 6 (warehouse)
Building part type 3 (warehouse)
Unit 1
External area For example, 200
Area collateral value For example, 400
Cubic area collateral value For example, 2400




The details for the building parts are then included in the collateral
value calculation.

2-3 Create a partner:
Pushbutton: Partner
Environment
Partner
Create in role
Dialog box: Select role
or
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.

(C) SAP AG AC815 10-113

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.

(C) SAP AG AC815 10-114




Unit: Complete Process Including Master Data
Topic: Collateral value calculation
3 Check that the collateral object is complete:
Accounting
Treasury
Loans
Master Data
Objects
Change
Enter your object number. Alternatively, you can search for your object using the
possible entries help.



In order to create a collateral value calculation, the object must be
completely maintained. If you have not yet created your object, do
this now.

4 Create a collateral value calculation:
Accounting
Treasury
Loans
Master Data
Objects
Collateral Value Calculation
Create
Enter your object number. Alternatively, you can search for your object using the
possible entries help.


If you subsequently make changes to the object, these are not
automatically included in the collateral value calculation. To include
changes to the object in the collateral value calculation, you have to
execute the calculation again, and for example, transfer the data from
a valuation reference that you have previously created.

(C) SAP AG AC815 10-115


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)
Field name or data category Value
Price For example, 150
Depreciation For example, 20%



The basic data for calculating the building value was transferred
from the master data for the building parts of the objects.
Pushbutton: Building value
Garages

(C) SAP AG AC815 10-116
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
Field name or data category Value
Surcharge For example, 20%

4-2 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.

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

(C) SAP AG AC815 10-117
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
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



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.

(C) SAP AG AC815 10-118

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.


(C) SAP AG AC815 10-119




Unit: Complete Process Including Master Data
Topic: Collateral and files
5 Create collateral:
Accounting
Treasury
Loans
Master Data
Collateral
Create
Select collateral type 2000 (endowment policy).
Maintain the master data for the policy.



Each collateral type has a different entry screen.

5-1 Assign a partner:
Pushbutton: Partner
Environment
Partner
Create in role
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

Field name or data category Value

(C) SAP AG AC815 10-120
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.

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

(C) SAP AG AC815 10-121
Yes
The overview for special arrangements appears.
Function key: F3
Save
Make a note of the collateral number.
6 Create a file:
Accounting
Treasury
Loans
Master data
Filed documents
Assign a file name of your choice.
Icon: Create
The basic data screen for the file appears.
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.


(C) SAP AG AC815 10-122




Unit: Complete Process Including Master Data
Topic: Interested party inquiry
7 Create an interested party inquiry:
Accounting
Treasury
Loans
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

(C) SAP AG AC815 10-123



Unit: Complete Process Including Master Data
Topic: Application
8 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.

(C) SAP AG AC815 10-124

8-1 Maintain the loan master data:
Basic data

Field name or data category Value
Loan type 005 (1A loan)
Basic data/Analysis data
Field name or data category Value
Maturity 06 (Maturity > 10)
8-2 Assign the object:
Objects
Icon: Assign object



The Assign object icon is in the center of the screen.

Dialog box: Object search



You can search for the object using the object number, or other
address or land register data.

Dialog box: Collateral object numbers
Select the object.

(C) SAP AG AC815 10-125

8-3 Display a collateral value proposal:
Icon: Display object



Select the object. The Display object icon is in the center of the
screen. The collateral object is displayed.

Environment
Collateral values
The results of the collateral value calculation are displayed.



You can branch to the collateral value from the detail display of the
collateral value calculation.
Go back to the screen Display Collateral Object.
Then select
Environment
Land register
Third party rights sec. III
The third party rights entered for the object are displayed.
8-4 Create an encumbrance:
Objects
Icon: Create encumbrance



Select the object. The Create encumbrance icon is in the center of
the screen. The fields for entering an encumbrance are ready for
input.

Objects/Encumbrances/Basic data

Field name or data category Value

(C) SAP AG AC815 10-126
Collateral type Encumbrance
Type of charge Land charge
Vol./Cert. Right acc. to certificate
Amount 250,000 UNI
Section 3 For example, 2
Rank For example, 2
Property list For example, 3



The link between the application and the object/encumbrance on the
database is only established when you save the application. Only
then, for example, can you display the encumbrances entered for the
contract in section III for the object.

8-5 Assign the collateral:
Collateral
Icon: Assign collateral



The Assign collateral icon is at the bottom of the screen.

Dialog box: Collateral search



You can search for the collateral using the internal number or other
master data (for example, collateral type 2000).

Dialog box: Internal numbers
Select the collateral.
Field name or data category Value
Assigned value For example, 2,500 UNI
Type of document Assignment
8-6 Insert a file:

(C) SAP AG AC815 10-127
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


(C) SAP AG AC815 10-128


You can search for the file using the file number or other master
data.

Dialog box: File number
Select the file.
Icon: Change
Icon: Create documents
Dialog box: Contract number
Select the contract number for which you want to create documents.
Select documents to be created
Select the following documents: Loan application, current salary statements,
and income tax assessment for the previous year.
Save



You can maintain the documents for the file in the application itself.






SAP AG 1999
General information
Preparation activities
Conversion phase
Cleanup activities
Mass conversion
Customizing
Contents:
Contract Currency Changeover




(C) SAP AG AC815 11-2
SAP AG 1999
Convert loan contracts to the euro
Make the necessary Customizing settings for the
changeover to the euro
At the conclusion of this unit, you will be able to:
Contract Currency Changeover: Unit Objectives




(C) SAP AG AC815 11-3
SAP AG 1999
Loans Management
within SAP Treasury
Special cases
Disbursement
Course overview
Process flow for
loans given
Loan contract
Payments due
Closing operations
Rollover
Complete process
including master data
Contract currency
changeover
Course Overview Diagram




(C) SAP AG AC815 11-4
SAP AG 1999
Several loans customers want to change their
loans over to the euro.
Contract Currency Changeover: Business Scenario




(C) SAP AG AC815 11-5
SAP AG 1999
This section will give you an overview of:
Changeover options
Possible changeover scenarios
The local currency changeover for the loans area
The procedure for the contract currency changeover
Contract Currency Changeover: General
Information




(C) SAP AG AC815 11-6
SAP AG 1999
At the end of the dual-currency phase, all
the loans must have been converted to the euro.
Dual currency phase (01/01/1999 - 12/31/2001)
Loan contract
1,000,000 UNI
Contract currency:
Currency participating in EMU
Contract currency changeover
Loan contract
50,000 EUR
Contract currency:
EUR
Changeover Options I



During the dual-currency phase, an agreement is made between the lender and the borrower to
change over the loan contracts that are in a currency participating in the EMU.

(C) SAP AG AC815 11-7
SAP AG 1999
Changeover Options II
You can change over the contract currency (CCC)
before or after the local currency changeover (LCC)
The system supports the conversion of loans to the euro:
Individual processing Mass processing
- Loans given - Loans given
- Loans taken - Loans taken
You always reset the contract currency changeover in the
individual processing function



The functions for the contract currency changeover are the same for individual processing and mass
processing. Since you cannot perform a test run, the changeover always takes place in the update run.

(C) SAP AG AC815 11-8
SAP AG 1999
Local currency
EMU currency EUR Other currency
Local currency
(LC)
Case 1:
CC = LC EUR
Example:
UNI EUR
where LC = UNI
EMU
Foreign currency
(FC)
Case 2:
CC = FC EUR
Example:
FRF EUR
where LC = UNI
Case 3:
CC = FC EUR
Example:
UNI EUR
where LC = EUR
Case 4:
CC = FC EUR
Example:
UNI EUR
where LC = GBP
C
o
n
t
r
a
c
t

c
u
r
r
e
n
c
y

(
C
C
)
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
Possible Changeover Scenarios



Case 1:
Standard case: Loan in local currency; contract currency changeover (CCC) before the local
currency changeover (LCC)
Case 2:
Loan in a currency participating in the European Monetary Union (foreign currency); CCC
before the LCC. You need to value foreign currency loans before you change over the contract
currency.
Case 3:
- Standard case: Loan in a currency participating in European Monetary Union (foreign
currency), originally a local currency loan, CCC after LCC.
- Additional case: Loan in a currency participating in European Monetary Union (foreign
currency), originally a foreign currency loan, CCC after the LCC.
You need to value foreign currency loans before you change over the contract currency.
Case 4:
Only applies to customers outside the European Monetary Union that have loans in a
participating currency.

(C) SAP AG AC815 11-9
SAP AG 1999
Dual-currency phase
1/1/1999 1/1/2000 1/1/2001
1/5/1999 3/15/2001
LC = CC LC CC LC = CC
CC = FC
UNI
EUR
EUR
UNI
LC
CC
UNI
6/30/2002
LC and CC = UNI before 01/01/1999
LC changeover on 03/15/2001
CC changeover on 01/05/1999
Case 1: CCC of LC Loans before LCC



Before the contract currency changeover (01/05/1999) from UNI to EUR, the loans are managed as
local currency loans.
In the period between the contract currency changeover and the local currency changeover
(01/05/1999 to 03/15/2001), the converted loans (as well as new euro loans) are managed as foreign
currency loans.
After the local currency changeover (03/15/2001), the loans are managed as local currency loans
again.


(C) SAP AG AC815 11-10
SAP AG 1999
Dual-currency phase
1/1/1999 1/1/2000 1/1/2001
10/12/1999 3/15/2001
LC CC LC = CC
CC = FC
UNI
EUR
EUR
FRF FRF
LC
CC
6/30/1998
LC CC
LC = UNI / CC = FRF before 01/01/1999
LC changeover on 03/15/2001
CC changeover on 10/12/1999
Case 2: CCC of FC Loans before LCC



Before the contract currency changeover (10/12/1999) from UNI to EUR, the loans are managed as
foreign currency loans.
In the period between the contract currency changeover and the local currency changeover
(10/12/1999 to 03/15/2001), the loans are still managed as foreign currency loans.
After the local currency changeover (03/15/2001), all the euro loans are managed as local currency
loans.


(C) SAP AG AC815 11-11
SAP AG 1999
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 6/30/2002
4/18/1999 2/15/2001
LC = CC LC CC LC = CC
CC = FC
UNI
EUR
EUR
UNI UNI
LC
CC
Case 3 (Standard): CCC of LC Loans after LCC



Before the local currency changeover (04/18/1999) from UNI to EUR, the loans are managed as
local currency loans.
In the period between the local currency changeover and the contract currency changeover
(04/18/1999 to 02/15/2001), the loans which were originally local currency loans are managed as
foreign currency loans.
After the contract currency changeover (02/15/2001), the original local currency loans are changed
back to local currency loans.


(C) SAP AG AC815 11-12
SAP AG 1999
Dual-currency phase
1/1/1999 1/1/2000 1/1/2001
4/18/1999 11/18/2000
LC CC LC = CC
CC = FC
UNI
EUR
EUR
FRF FRF
LC
CC
6/30/2002
LC CC
LC = UNI / CC = FRF before 01/01/1999
LC changeover on 04/18/1999
CC changeover on 11/18/2000
Case 3 (Additional Case): CCC of FC Loans after
LCC



Before the local currency changeover (04/18/1999) from UNI to EUR, the loans are managed as
foreign currency loans.
In the period between the local currency changeover and the contract currency changeover
(04/18/1999 to 11/18/2000), the loans are still managed as foreign currency loans.
After the contract currency changeover (11/18/2000), the loans which were originally foreign
currency loans are managed as local currency loans. This only applies for foreign currencies
participating in EMU.


(C) SAP AG AC815 11-13
SAP AG 1999
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
CCC: Converting the Data



Contract currency: In the background, the system creates a new field for the original contract
currency (this is used for the parallel currency display in correspondence).
Conditions: You convert reference interest rates manually as part of the cleanup.
Process the following data manually:
Collateral
Objects
Encumbrances
Collateral value calculations
Credit standing calculations
Documents:
Documents in the loans subledger are converted.
FI documents are not converted; the FI document contains the amount originally posted



(C) SAP AG AC815 11-14
SAP AG 1999
Preparation
activities:
Accounting
Disclose
currency reserves:
TR-TM-SE
- File management
- Cancel summariztn
TR-LO
Effects on FI:
TR-LO
Convert limits
Execute
Run currency
valuation
program
- Process files
- Summarization
report program
Reconcile
FI and TR-LO
Make settings
Start
changeover
Preparation
activity
Customizing
Settings:
TR-TM-SE
Convert
manually
Conversion of
local currency
yes
yes
yes
yes
yes
yes
no
no
no
no
no
no
Effects on FI:
TR-TM-SE
yes
no
Reconcile
FI and TR-TM-SE
Local Currency Changeover and Loans I



When you execute the local currency changeover, you must ensure that there are no loans in rollover
files. You must process the files beforehand.
You must either invalidate or delete the summarization before the local currency changeover for all
loans whose contract currency is not euro and for which summarized records were created.
The local currency amounts in FI and TR-LO are converted independently of each other. Since the
local currency amounts are converted at different summarization levels (document in TR-LO /
account transaction figures in FI), there may be differences when you compare TR-LO and FI that
have arisen from rounding differences during the local currency changeover.

You must reconcile the TR-LO and FI balances both b e f o r e and a f t e r the local currency
changeover to check the consistency of the data.

For more information, see the Treasury euro documentation.


(C) SAP AG AC815 11-15
SAP AG 1999
Adjust
selection criteria:
TR-LO
Process
Local currency
conversion
Currency hedge
Cleanup
activities
Limit management
report program
SEUVTBLV
Adjust data in CM
Execute
End of
changeover
no
no
yes
yes
Effects on FI:
TR-TM-SE
Process
yes
Effects on FI:
TR-LO
Process
no
yes
Local Currency Changeover and Loans II



You have already assigned the relevant selection criteria to all files and methods. After the local
currency changeover (and after the contract currency changeover) you need to check the selection
criteria and make any necessary changes. You do this using the corresponding functions in the Loans
application menu.


(C) SAP AG AC815 11-16
SAP AG 1999
Start
changeover
CCC: Accounts
Make settings
in Customizing
Value foreign
currency loans
Empty rollover
file
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
General
preparation
activities
Preparation
activities
per loan
End of
changeover
Cleanup activities
Preparation activities
Currency swap:
Disc./premium
Conversion
log
Balance
sheet transfer
Other activities
Process
suspended data
Contract Currency Changeover (CCC):
Process Flow




(C) SAP AG AC815 11-17
SAP AG 1999
This section will give you an overview of:
The general preparation activities:
- Prepare accounts for CCC postings
- Value foreign currency loans
- Make settings in Customizing
The preparation activities per loan contract:
- Process suspended data
- Empty the rollover files
Contract Currency Changeover:
Preparation Activities




(C) SAP AG AC815 11-18
SAP AG 1999
CCC:
Accounts
Set up
Customizing
Value
FC loans
Process
suspended
data
Empty
rollover file
General
preparation
activities
Preparation
activities
per loan
Preparation activities
Start of
changeover
Preparation Activities: Overview




(C) SAP AG AC815 11-19
SAP AG 1999
I
CCC:
Accounts
III
Set up
Customizing
II
Value
FC loans
General
preparation
activities
General Preparation Activities




(C) SAP AG AC815 11-20
SAP AG 1999
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
Contract Currency Changeover: Postings




(C) SAP AG AC815 11-21
SAP AG 1999
Activities:
1) Make sure that you can make postings to each balance sheet
account in FI in both euros and the original currency.
(This is always the case if the currency of the balance sheet account
is the local currency. You can use the validation function in FI to
restrict the postings to certain currencies.)
2) Set up clearing accounts in FI for the CCC postings, such as:
- a clearing account for currency swap postings
- a clearing account for the adjustments to capital amounts
- a clearing account for the balance adjustments.
I) Contract Currency Changeover: Accounts




(C) SAP AG AC815 11-22
SAP AG 1999
PREREQUISITES
You must carry out a foreign
currency valuation:
--> before the contract currency
changeover for loans originally
managed in a foreign currency that
is also participating in EMU
PROCEDURE
Application level:
Loans
Accounting
Valuation
Foreign currency
II: Processing Foreign Currency Loans



If you do not value foreign currency loans before you change over the contract currency, problems
arise when you carry on processing the loan. Before the start of the dual-currency phase, you must
therefore perform a (one-time) foreign currency valuation for all loans in currencies participating in
EMU (that differ from the local currency).
You must value all the relevant foreign currency loans using a one-step valuation principle that
calculates the full valuation gain or loss.

(C) SAP AG AC815 11-23
SAP AG 1999
Define currencies to be
converted and the euro
Treasury Management
Basic Functions
Euro Currencies
Define Participating Currencies
for Euro Changeover
Define currency code for
the euro
Global settings
Currencies
III: Customizing: Currencies



In the Loans area (TR-LO), you can only change over the contract currency for currencies defined as
participating currencies in this table.

You can only convert the contract currency to the currency that is defined as the target currency in
Customizing. When it converts the contract currency, the system also checks whether the currency of
the loan to be converted is defined in the translation table in Customizing and whether a fixed rate
exists for the currency pair "currency to be converted - target currency".






(C) SAP AG AC815 11-24
SAP AG 1999
FTyp Name Flow Calc. Activity
categ. categ. ID
0910 Increase disb. commitm. euro EUA+ NOOP 07
0915 Reduce disb. commitm. euro EUA- NOOP 08
0920 Increase remaining capital euro EUR+ NOOP 07
0925 Reduce remaining capital euro EUR- NOOP 08
0930 Increase interest calc. capital euro EUZ+ AA 07
0935 Reduce interest calc. capital euro EUZ- SS 08
0940 Currency swap position inflow 2UBZ NOOP 07
0945 Currency swap position outflow 2UBA NOOP 08
0950 Currency swap discount outflow - - 08
0951 Currency swap premium outflow - - 07
0952 Currency swap discount inflow - - 07
0953 Currency swap premium inflow - - 08
....
0980 Euro transfer 0110 debit EUUB NOOP 07
0981 Euro transfer 0110 credit EUUB NOOP 08
....
....
....
Example: Extract from the table of flow types
III: Define Flow Types for Adjustment Postings and
Currency Swap Postings



Flow types for currency swap postings and adjustments to capital amounts: see above;
Flow types for adjustments to balances: See the standard Customizing settings delivered with the
system and Note 124254
In Customizing, choose Treasury Management / Loans / Transaction Management / Flow Types /
Define Flow Types.
For the currency swap of the balance sheet position, you must define flows with the flow categories
2UBA and 2UBZ. During conversion, the system changes these flow categories to EUUB.
(You need to make the settings in this way to enable the system to determine the flow types
automatically. The flow categories are replaced to prevent the flows from being considered for
evaluations.)


(C) SAP AG AC815 11-25
SAP AG 1999
Treasury
Treasury Management
Loans
Transaction Management
Condition Types
Define Condition Groups
Assign flow types to the application functions:
III: Currency Swap Postings for Loan Positions and
Adjustments to Capital Amounts



For the contract currency changeover, assign the flow types 0910-9045 to application function 850.
For the reset, assign the flow types 0945 and 0940 to application function 851.

Application function 850: Contract currency changeover to the euro
Application function 851: Reset contract currency changeover to the euro

(C) SAP AG AC815 11-26
SAP AG 1999
Make the following settings for currency swap postings for open items:
Define two flow types for the currency swap posting for each original flow
type that generates an open item (such as debit positions, overpayments)
Assign the currency swap flow types to the original flow types as offsetting
flows
See also:
- Currency swap postings for accrual/deferral (discount/premium)
- Flow types for adjustments to balances
III: Currency Swap Posting: Open Items



For currency swap postings for accrual/deferral (discount/premium): See the standard Customizing
settings delivered with the system and Note 111785
For flow types for adjustments to balances: See the standard Customizing settings delivered with the
system and Note 124254

(C) SAP AG AC815 11-27
SAP AG 1999
Treasury
Treasury Management
Loans
Functions
Accounting
General Ledger Update
Define Account Determination
III: Account Determination for Flow Types



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


(C) SAP AG AC815 11-28
SAP AG 1999
You can generate correspondence with a dual
currency display. In this case, the amounts are
shown in both the original currency or local currency
and in euros.
To make use of this option, you must change the
Customizing settings for correspondence accordingly.
III: Correspondence



The Customizing settings delivered with the system contain a sample document
AUSZ.ANZSCH_DUAL (Disbursement notification: Dual currency) as an example of a
disbursement letter with a parallel currency display.
The function module EMUL_ALTERNATE_CURR_FOR_SCRIPT is used for currency translation
in correspondence.
If you want to use the parallel currency display in correspondence, you must change your settings in
Customizing for correspondence to match the above sample document.
The remaining capital at the time of the CCC is saved in the field VDARL_EU-BREMAINCAP.
You can use this value in the correspondence if you want to disclose to the borrower the remaining
capital in the original currency when you convert the contract currency.


(C) SAP AG AC815 11-29
SAP AG 1999
I
Process
suspended
data
II
Empty
rollover
file
Preparation
activities
per loan
Preparation Activities per Loan




(C) SAP AG AC815 11-30
SAP AG 1999
PROCEDURE
Before you convert each loan
(individual processing), release any
suspended data
I: Process Suspended Data



Data is suspended when the release function is set to active and master data or flow records relating
to a loan are in release status.
If suspended data still exists when you run the conversion, the system automatically writes an error
message to the conversion log, indicating that the loan in question was not converted.


(C) SAP AG AC815 11-31
SAP AG 1999
PREREQUISITES
There are loans in the rollover file
These loans cannot be changed
over to the euro
PROCEDURE
Loans
Portfolio
Rollover
File Processing
General File
Display / Edit
II: Empty Rollover File



When you perform the contract currency changeover, you must ensure that none of the loans to be
converted are in a rollover file. If necessary, remove these loans from the rollover process.

(C) SAP AG AC815 11-32
SAP AG 1999
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
Contract Currency Changeover:
Conversion Phase




(C) SAP AG AC815 11-33
SAP AG 1999
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.
Contract Currency Changeover: Conversion
Procedure



! For performance reasons, the number of open items to be converted should be reduced to a
minimum !
We also recommend that you change over your loans successively, rather than changing them all
over at the end of the dual-currency phase.


(C) SAP AG AC815 11-34
SAP AG 1999
Procedure
Loans
Portfolio
Contract Currency Changeover
to the Euro
Currency Changeover
Selection criteria
Control parameters for online conversion
Control parameters for conversion
using process management
Company code
Loan number
Posting date
Planned record update
x
Put loan into file
CCC: Start Conversion for Individual Loans



During the dual-currency phase, we distinguish between individual loan processing and mass loan
processing. Call up the individual processing function as shown above. You use the process
management function for mass loan processing.
When you call up the individual changeover function, you can put a loan into a file and process it
later using the mass processing function.
The system performs a contract currency changeover according to the settings you have made in
Customizing: Define Participating Currencies for Euro Changeover.
Cash Management is updated automatically when you run a planned record update. You can choose
whether to have the planned records updated automatically when the contract currency is converted.
If you run the conversion program without the automatic planned record update, the system updates
the Cash Management records when you carry out the next planned record update.



(C) SAP AG AC815 11-35
SAP AG 1999
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
Check Incoming Payment Distribution Level



In order to be able to clear the overpayments for an incoming payment distribution level
automatically, the system requires all the loans for an incoming payment distribution level to be in
the same currency. This means that all the loans in a given incoming payment distribution level need
to be changed over at the same time.
Example: You want to convert loan 10000002. The system runs the check and recognizes that loan
10000001 also belongs to the IP distribution level Finance project level in finance project Project1.
The system displays the relevant loans and after confirmation by the user converts these loans as
well. In this case: The system also converts loan 10000001. Otherwise, neither of the loans are
converted.
Note: If you still want to convert an individual loan, choose Change contract and change the IP
distribution level to Contract variant. After the changeover, you can only assign the loan to the
original IP distribution level when all the other loans in the level have been converted.


(C) SAP AG AC815 11-36
SAP AG 1999
The following master data is converted automatically:
(currency key, amounts in contract currency)
Loan master data
Condition headers
Condition items
Payment splitting data
Payment advice data
If the account assignment reference has been defined
as currency-dependent, the system sets a flag for the
balance sheet transfer when the currency is changed to
the euro.
Conversion of Master Data



The system determines the account assignment reference automatically on the basis of the settings in
Customizing:
Treasury / Treasury Management / Loans/ Functions / Accounting / General Ledger Update /
Control Automatic Determination of Account Assignment Ref.
As part of the cleanup process you must carry out the balance sheet transfer flagged during the
conversion run.
We recommend that you set up the system so that it does not use the currency as a basis for
determining the account assignment reference automatically. Otherwise you may experience
performance problems particularly when converting the contract currency.

(C) SAP AG AC815 11-37
SAP AG 1999
The following flow data is converted
(for example, currency keys, amounts in contract currency, exchange rates)
Document items / Cash flow:
All actual records
Planned records not based on conditions are translated
Planned records based on conditions are deleted in the original
currency and regenerated using the conditions that have been
converted to euros (they are visible in the cash flow when you
carry out a planned record update)
Drawings on disbursements
Conversion of Flow Data



The system converts a loan as at a specified key date, taking into account any translation or rounding
differences. The contract number stays the same.
Note: Amounts in local currency are not converted during the contract currency changeover.
During the conversion run, condition-based planned records are converted to the euro. After the
planned record update, you can see the newly-calculated amounts in the cash flow.
This planned record update can be triggered in two ways:
When you run the contract currency changeover
by setting the Planned record update indicator when you run the conversion program
or
After the contract currency changeover
by calling up the planned record update function (choose Portfolio / Periodic Processing / Update
Planned Records)
You need to do this at the latest before the next debit position run!

This applies for individual processing and mass processing.


(C) SAP AG AC815 11-38
SAP AG 1999
Borrower's note loan orders are converted in the
same way as the flow data
BNL
Conversion of Borrower's Note Orders




(C) SAP AG AC815 11-39
SAP AG 1999
If loans have been rolled over, the system adjusts
the commitment capital in euros.
Loans Rolled Over



The commitment capital for the rollover is calculated on the basis of the cash flow for the existing
commitment capital and other amounts.

When the contract currency is converted, the system calculates the commitment capital (for the last
rollover) in the same way as it was calculated originally, but this time on the basis of the cash flow in
euros.
As a result, there are no rounding differences.


(C) SAP AG AC815 11-40
SAP AG 1999
UNI / EUR exchange rate: 1.95583
UNI EUR
Disbursement
100,000.00 51,129.19
Repayment
50,000.00 - 25,564.59 -
Remaining capital (calculated from flows) 50,000.00 25,564.60
Remaining capital (translated directly) 50,000.00 25,564.59
Rounding difference 0.01 -
Capital amount field
CCC: Example



CCC: Example of differences for capital amounts:

The system makes the following calculations:
- The capital amounts are calculated on the basis of the cash flow in the original currency:
Remaining capital (from flows): 50,000 UNI
- The capital amounts in the original currency are translated into euros using the fixed rate (direct
currency translation).
Remaining capital (direct translation): 25,564.59 EUR
- The cash flow is translated from the original currency into euros record by record.
- The capital amounts are calculated on the basis of the cash flow in euros:
Remaining capital (from flows): 25,564.60 EUR
- Calculation of the rounding difference: 0.01 EUR

Relevant capital amount: Remaining capital translated into euros (directly): 25,564.59 EUR


(C) SAP AG AC815 11-41
SAP AG 1999
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 Clearing account for currency swap
50,000.00 UNI * 50,000.00 UNI + 50,000.00 UNI + 25,564.60 EUR 4
25,564.60 EUR 4 0.01 EUR ^
25,564.59 EUR = * Starting basis: Position in UNI
+ Currency swap outflow
Clearing account for capital adjustment 4 Currency swap inflow (LC balance = 0)
^ Adjustment posting for remaining capital
0.01 EUR ^ = Position in EUR after conversion
(balance view!)
Currency Swap Posting: Loan Position



Prerequisite:
For currency swap postings (for loan positions, open items and discounts/premiums) you must be
able to make postings to the clearing account for the currency swap (and other relevant accounts)
in both euros and the original currency.
Procedure:
The system performs a currency swap posting for the proportional loan balance in the balance
sheet account in FI.
The system determines the remaining capital in the original currency via the cash flow and posts
this amount from the balance sheet account to a clearing account for currency swap postings.
The system determines the remaining capital in euros on the basis of the euro cash flow, and posts
this value back to the balance sheet account.
Note:
Since you cannot post a local currency amount of zero in FI, the adjustment comprises two postings
for technical reasons. In the first posting, the position is posted to a clearing account. In the second
posting, the local currency amount is taken off the clearing account, since only the contract currency
needs to be adjusted.
Example: Aim: Post 0.01 EUR = 0.00 UNI (LC) Postings: 1. 0.01 EUR = 0.02 UNI (clearing account
to balance sheet account); 2. 0.00 EUR.= 0.02 UNI (balance sheet account to clearing account).

(C) SAP AG AC815 11-42
SAP AG 1999
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
Generating and Posting Adjustment Flows



When the system converts and adjusts the capital amounts, it takes all the actual records that exist
when you run the conversion into account (if there is a disbursement commitment, planned
disbursements are also considered). The remaining capital is adjusted to reflect business practice,
while the interest calculation capital and disbursement commitment are adjusted for technical
reasons.
Rounding differences can affect interest calculation. To clear the rounding differences, the system
performs a one-off adjustment of the interest calculation capital on the conversion key date.
If the loan was fully disbursed before conversion, the system generates an adjustment flow (where
necessary). This adjustment flow clears any rounding differences and sets the balance for the
disbursement obligation back to zero.
The system also adjusts the remaining capital amount disclosed to the borrower. The system adjusts
any differences arising from the conversion automatically and transfers the corresponding postings to
FI.

(C) SAP AG AC815 11-43
SAP AG 1999
Post.dte Text Subledger FI
01/31 Interest debit pos. 100.00 UNI 100.00 UNI
02/15 Outflow due to euro 100.00 UNI
(51.34 EUR)
100.00 UNI
02/15 Post open items in
euros
51.34 EUR 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
Currency Swap Posting: Open Items



The open items resulting from the converted loan can be arrears from debit positions or
overpayments. These open items are converted during the contract currency conversion run by
means of a currency swap posting.
The original amount is taken off the subledger account, translated into EUR using the fixed exchange
rate, and then posted back to the subledger account in EUR.
No adjustment flow is necessary.


(C) SAP AG AC815 11-44
SAP AG 1999
The proportionate premium/discount on the FI
account is translated from the original currency into
euros by means of a currency swap posting
The system determines the remaining premium/discount on the
basis of the cash flow in the original currency and posts this amount
from the accrual/deferral account to a currency swap account
(outflow)
At the same time, it calculates the remaining premium/discount on
the basis of the cash flow in euros and posts this amount from the
currency swap account back to the accrual/deferral account (inflow)
Currency Swap Posting: Premium/Discount



Currency swap postings are only generated automatically during the conversion run for flow types
with flow category "TA" and calculation category "TA". These flows must be flagged as relevant for
accrual/deferral. Flow types with accrual/deferral method "0: None or manual" are not considered.
No adjustment flow is necessary.


(C) SAP AG AC815 11-45
SAP AG 1999
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.
Currency Swap Postings




(C) SAP AG AC815 11-46
SAP AG 1999
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
Adjustments Made During Conversion



Document-based balance adjustments are adjustments that can be attributed to a single item. They
are only carried out for loans that are managed on the basis of customer accounts.
Account-based balance adjustments cannot be attributed to a single item. They are carried out for
loans that are managed on the basis of customer accounts as well as for those that are not.

(C) SAP AG AC815 11-47
SAP AG 1999
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)
Balance Adjustments I



Reconciliation: In the subledger, incoming payments are cleared using the instalment payment
procedure. In FI customer accounts, they are cleared using the residual balance procedure. As a result
of the different procedures, there may be rounding differences after the contract currency changeover
(see the example on the next slide).
Document-based balance adjustments: The system makes document-based balance adjustments
for original flows (debit positions, overpayments) if the chain of clearing postings can be tracked
using references. The system first tracks the chain of postings using invoice references. If there are
no invoice references, the system uses the incoming payment document (RZEBEL) and the account
(RSOLL/RHABEN) to track the chain. In this case, residual items are also included. If the balance
within a chain is zero in the original currency, the chain is regarded as complete. A document-based
balance adjustment is entered as an additional item in the document of the original flow. If
adjustments were calculated using an invoice reference, the reference flow type is the same as the
flow type for the original flow. Otherwise, the reference flow type is the same as the flow type for
the balance adjustment.
Balance adjustments can only occur if more than one flow is used to clear the original flow.
Account-based balance adjustments: If document-based balance adjustments cannot be calculated
because references are missing or incorrect, the corresponding flows are considered in the account-
based balance adjustment. Account-based balance adjustments are only posted in the subledger.


(C) SAP AG AC815 11-48
SAP AG 1999
Before conversion After conversion
with adjustment
Flow Doc. Pos. Debit Credit Debit Credit
Interest debit pos. 0001 1 20.00 UNI 10.53 EUR
Bal. adjustment 0001 2 0.01 EUR
IP interest 0002 1 10.00 UNI 5.26 EUR
IP interest 0003 1 10.00 UNI 5.26 EUR
Balance 0.00 UNI 0.00 EUR
Example of a document-based balance adjustment:
(Exchange rate 1.90 UNI / EUR)
Balance Adjustments II



Without the balance adjustment, there is a balance of 0.01 EUR in the subledger. In this case, the
borrower would have to pay 0.01 EUR (assuming that the subledger shows receivables due from the
borrower). The customer account, on the other hand, is still cleared. There is no corresponding open
item.
The document-based balance adjustment clears the receivable item by adjusting the amount of the
original flow.
The balance adjustments are only recorded in the subledger. They are not posted in FI.
If the original flows are reversed (interest debit position), there is an overpayment of 2 x 5.26 EUR,
which fully clears the receivable. Without a balance adjustment there would be a residual receivable
item of 0.01 EUR that would need to be processed manually. The balance adjustment fully clears the
receivable item. If an adjustment is used in a reversal posting, it is also posted in FI.




(C) SAP AG AC815 11-49
SAP AG 1999
Procedure
Loans
Portfolio
Contract Currency
Changeover to the Euro
Reset Currency Changeover
Selection criteria
Control parameters
Resetting the euro contract currency changeover:
Company code
Loan number
Posting date
Reason for reversal
Planned record update
Reset contract currency changeover to the euro Reset contract currency changeover to the euro
Resetting the Contract Currency Changeover



The reset function reverses the contract currency changeover.
During the changeover, all the relevant loan data is saved to backup tables. If the changeover is reset,
the system uses the data from these backup tables.
You can only reset the changeover if no postings* have been made since the changeover. If postings
have been made, you must reverse them first.

*or only reversed postings


(C) SAP AG AC815 11-50
SAP AG 1999
1. Before you reset the changeover, you must reverse any
postings made since the changeover.
2. The reset function reverts to the original data.
3. Any postings made since the changeover and reversed
before the reset are translated automatically. If
necessary, enter the postings again during the cleanup.
The reset function is only intended for reversing the contract
currency changeover.
Reset Changeover: Procedure



1. You must reverse any postings made after the contract currency changeover.

2. The reset function uses the original data from the backup tables, except for payment splitting data
and payment advice data. You may need to postprocess this data manually, in which case there will
be a corresponding note in the changeover log.

3. The system automatically converts the flows that were reversed for the reset and the
corresponding reversal flows from euros into the original currency.
Any flows in euros that you reverse before the reset must be posted back in the original currency
after the reset.


(C) SAP AG AC815 11-51
SAP AG 1999
This section will give you an overview of how to:
Check the conversion log
Postprocess the balance sheet transfer
Perform other cleanup activities
Contract Currency Changeover:
Cleanup Activities




(C) SAP AG AC815 11-52
SAP AG 1999
Conversion
log
Balance
sheet
transfer
End
of
changeover
Cleanup activities
Other
activities
Cleanup Activities




(C) SAP AG AC815 11-53
SAP AG 1999
During the conversion run the system automatically
generates a log
The log appears when conversion of the individual loan
is complete
You can still view the log later on using transaction
SLG1 and object FTLE
Check Conversion Log



If errors occur during the conversion run, the loan is not converted.
The following information is recorded in the conversion log:
If the contract currency was converted:
Whether a flag was set for the balance sheet transfer
Whether reference interest rates need to be processed manually
Whether an error has occurred:
In this case, the loan has not been converted and is highlighted in red in the log.
If you select an item in the list and choose Display message, the system displays a list of the steps in
the conversion procedure. If an error occurred during the changeover, the corresponding place in the
list is highlighted in red.
If you select an item in this detail list and choose Long text, the system displays more detailed
documentation.
If you choose Back or Exit, you can call the log up again using the above transaction.


(C) SAP AG AC815 11-54
SAP AG 1999
Conversion:
- The system generates a flag for the balance sheet transfer
- The flag is displayed in the conversion log
Cleanup: Trigger balance sheet transfer:
Procedure:
In the Loans application menu, choose Balance sheet
transfer and enter your values in the initial screen.
If you have set up the system to determine the account assignment
reference automatically on the basis of the currency, the contract currency
changeover to the euro may result in a change to the account assignment
reference.
Cleanup: Balance Sheet Transfer



After you have run the conversion program, you must trigger the balance sheet transfer that was
flagged. You can trigger the transfers individually or as a batch job.
The balance sheet transfer has the following effect:
For loans that have not yet been posted:
The system changes the account assignment reference in the contract data

For loans that have been posted:
The system changes the account assignment reference in the contract data
and
Carries out a transfer posting between the corresponding balance sheet accounts in FI.

If currency swap postings were made for the position during the CCC, a balance sheet posting that is
flagged cannot be made if the posting date is before or the same as the posting date of the CCC.
See also: Note 126102

(C) SAP AG AC815 11-55
SAP AG 1999
You must process reference interest rates manually
The following are not converted automatically:
- Collateral
- Objects
- Encumbrances
- Collateral value calculations
- Credit standing calculations, etc.
Check the selection criteria of the files
Foreign currency loans
Other Cleanup Activities




(C) SAP AG AC815 11-56
SAP AG 1999
If your selection criteria for files used for rollovers / process
management include
- amounts
and / or
- currencies
you must check these criteria after the conversion and make any
necessary changes:
Procedure:
Rollover or Process management ...
Other Cleanup Activities: Selection Criteria for
Files



Rollover examples:

Selection criteria before conversion:
Contract currency and local currency = UNI
All loans for which the remaining capital is > 50,000 UNI are in file 1.
Selection criteria after conversion:
Contract currency = EUR
Actual situation: All loans with remaining capital > 50,000 (UNI) are in file 1.
Desired situation: All loans with remaining capital > 25,000 (EUR) are in file 1.


(C) SAP AG AC815 11-57
SAP AG 1999
Extract of the cash flow of a euro loan:
Other Cleanup Activities: Euro Foreign Currency
Loans
(Local currency)
...
08/01/2001 95.88 UNI Interest debit pos.
08/01/2001 32.04 UNI Annuit.repaym. D
09/01/2001 95.70 UNI Interest debit pos.
09/01/2001 32.22 UNI Annuit.repaym. D
10/01/2001 95.53 UNI Interest debit pos.
10/01/2001 32.39 UNI Annuit.repaym. D
11/01/2001 95.37 UNI Interest debit pos.
11/01/2001 32.55 UNI Annuit.repaym. D
12/01/2001 95.20 UNI Interest debit pos.
12/01/2001 32.72 UNI Annuit.repaym. D
12/01/2001 0.01 UNI Exchange rate loss
01/01/2002 95.02 UNI Interest debit pos.
01/01/2002 32.90 UNI Annuit.repaym. D
02/01/2002 94.85 UNI Interest debit pos.
02/01/2002 33.08 UNI Annuit.repaym. D
...
(Contract currency)
...
08/01/2001 49.28 EUR Interest debit pos.
08/01/2001 16.47 EUR Annuit.repaym. D
09/01/2001 49.19 EUR Interest debit pos.
09/01/2001 16.56 EUR Annuit.repaym. D
10/01/2001 49.10 EUR Interest debit pos.
10/01/2001 16.65 EUR Annuit.repaym. D
11/01/2001 49.02 EUR Interest debit pos.
11/01/2001 16.73 EUR Annuit.repaym. D
12/01/2001 48.93 EUR Interest debit pos.
12/01/2001 16.82 EUR Annuit.repaym. D
12/01/2001 0.00 EUR Exchange rate loss
01/01/2002 48.84 EUR Interest debit pos.
01/01/2002 16.91 EUR Annuit.repaym. D
02/01/2002 48.75 EUR Interest debit pos.
02/01/2002 17.00 EUR Annuit.repaym. D
...



In the case of foreign currency loans, changes in exchange rates result in exchange rate gains or
losses.

In the case of euro loans, the exchange rates are fixed. Despite the fixed rate, rate gains and losses
can arise from rounding differences.
Examples of rate gains or losses from rounding differences:
(LC = Local currency)

LC UNI, new loan is granted in EUR
LC UNI, existing loan in UNI converted to EUR
LC EUR, existing loan in "old" local currency UNI
The system uses the existing algorithm with fixed rates to display gains and losses resulting from
rounding differences in the cash flow.


(C) SAP AG AC815 11-58
SAP AG 1999
Define flow types for rate gains/losses
Assign the flow types to flow categories:
(You make the assignment for the condition group)
Category XF: Recalculate capital amounts during contract
currency conversion
Set up account determination
If, as a result of the contract currency changeover, you have
foreign currency loans for the first time, you must make the following
settings in Customizing:
Other Cleanup Activities: Foreign Currency Loans
- Customizing



If you already have foreign currency loans, you can use the existing Customizing settings for foreign
currency loans.
Even if no foreign currency loans have been granted so far, some loans may be treated as foreign
currency loans in the context of the euro changeover.
When the local currency is changed over to the euro, loans that were originally local currency
loans become foreign currency loans.
When the contract currency is changed over to the euro, loans that were originally local currency
loans become foreign currency loans.
If new loans are granted in euros before the local currency changeover, these are treated as foreign
currency loans (until the local currency changeover).
In all of these cases, you must define flow types for rate gains and losses, assign them to the above
flow category and make the settings for account determination.


(C) SAP AG AC815 11-59
SAP AG 1999
At the end of the dual-currency phase, make sure that all the loans
have been changed over to the euro
You can select all the loans that have not yet been changed over in
process management
For more information about the contract currency changeover, see:
- The documentation
- Note 124254

Other Cleanup Activities: General Note






(C) SAP AG AC815 11-60
SAP AG 1999
Loan contract
1,000,000 UNI
Contract currency changeover
Loan contract
1,000,000 UNI
Loan contract
1,000,000 UNI
Loan contract
1,000,000 UNI
Loan contract
Loan contract
1,000,000 UNI
Loan contract
1,000,000 UNI
Loan contract
1,000,000 UNI
Loan contract
1,000,000 UNI
Loan contract
500,000 EUR
Process management
4 Logs
+
Update files, if required
CCC: Mass Processing
1,000,000 UNI



You can use Process Management to carry out the mass processing of contract currency changeover.
After mass processing the system issues the following four logs:

1. Process management log
2. Contract currency changeover log
3. Posting log for the generated postings
4. Error log for incorrect postings
Loans containing errors are not converted. The system puts these in a suspension register.
After the contract currency changeover the system does not update the capital amounts for the loans
in the folder but continues to display them in the original currency. This is for system performance
reasons. If the file is updated, you can see the capital amounts in euros on the detail screens.

(C) SAP AG AC815 11-61
SAP AG 1999
I. Customizing for the changeover to the euro
II. Additional Customizing settings for process management
1. Define activity type: E
2. Define logical fields (such as the contract currency field)
3. Define the register (incl. the exclusion register)
4. Define report program functions
- EUR EUR_Contract currency changeover
- POFU Fill files
- If correspondence is required:
ADDR Notification of CCC to the euro
5. Assign functions to the register
6. If correspondence is required:
Correspondence settings in Customizing:
- Assign function code ADDR to correspondence activities
- ...
7. Installation parameters: Set format to X_65_132
CCC: Mass Processing - Customizing



You can use the following as the register: 1. Not processed 2. EUR-CCC Carried out 3. EUR-CCC
Correspondence generated 4. Excluded
The report functions have the following function calls:
POFU fill file: RFVDPSF1
EUR CCC: RFVDEMU3
ADDR notification: RFVDPF01

(C) SAP AG AC815 11-62
SAP AG 1999
Convert loan contracts to the euro
Make the required Customizing settings for the
changeover to the euro
You are now able to:
Contract Currency Changeover: Unit Summary




(C) SAP AG AC815 11-63
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.
1 Create a mortgage loan with currency UNI in your company code, TRXX.
1-1 Enter the general data for the contract and define the conditions. Save your loan
and make a note of the loan number.
1-2 Disburse the loan contract. Execute the disbursement without simulating the
posting.
1-3 Carry out a debit position run for the first two due dates.
1-4 After the disbursement and debit position run, run the payment program for
your customer.
2 Convert the contract currency of your loan to the Euro. You want to update the
planned records directly. Look at the log. Which data was converted?
2-1 Return to your loan and look at the changes resulting from the
conversion.



(C) SAP AG AC815 11-64
Solutions



Unit: Contract Currency Changeover to the Euro
1 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
Field name or data category Value
Loan type 005 (1A loan)

(C) SAP AG AC815 11-65
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 3
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 x
Frq 3
Due on 03/31/2000
Calc. date 03/31/2000
Pushbutton: Partner
Maintain the entries for the main borrower and note the number of your
customer.
Field name or data category Value
BnkT 0001
Payment method E
Save
In the dialog boxes that appear, select the settings for the partner.

(C) SAP AG AC815 11-66
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 x
Enter
Continue selecting Enter until the payment proposal has been created.

(C) SAP AG AC815 11-67
Pushbutton: Payment run
Dialog box: Schedule payment run
Field name or data category Value
Start immediately x
Enter
Continue selecting Enter until the payment has been created.
Pushbutton: Payment log
Check whether the payments have been posted.



If no payments were created, speak to the course instructor.

2 Run the payment program:
Accounting
Treasury
Loans
Portfolio
Contract currency changeover to EURO
Currency changeover
Field name or data category Value
Company code TRXX
Loan number Your loan number
Posting date 07/01/2000
Planned record update x



After the changeover, check the Currency change and adjustment
flows posted log by doubleclicking Ltxt.
In a second session, display the contract that you have changed over,
paying particular attention to the cash flow. Check that the log is
correct.