Integration Guide for CML-Based Policy Loans - help.sap.com · PDF file3.3 Document Splitting for Transfer Posting in FS-CD ... 5 and 6 provide information about the required configuration

SAP Policy Management 5.3 SAP Loans Management (Suite edition) in SAP ERP 6.0

EHP7 Collections and Disbursements in SAP ERP 6.0 EHP7

CUSTOMER

Integration Guide for CML-Based Policy Loans Document Version: 1.1 – 10.11.2015

2 © 2015 SAP SE or an SAP affiliate company. All rights reserved.

Typographic Conventions

Type Style Description

Example Words or characters quoted from the screen. These include field names, screen titles,

pushbuttons labels, menu names, menu paths, and menu options.

Textual cross-references to other documents.

Example Emphasized words or expressions.

EXAMPLE Technical names of system objects. These include report names, program names,

transaction codes, table names, and key concepts of a programming language when they

are surrounded by body text, for example, SELECT and INCLUDE.

Example Output on the screen. This includes file and directory names and their paths, messages,

names of variables and parameters, source text, and names of installation, upgrade and

database tools.

Example Exact user entry. These are words or characters that you enter in the system exactly as

they appear in the documentation.

<Example> Variable user entry. Angle brackets indicate that you replace these words and characters

with appropriate entries to make entries in the system.

EXAMPLE Keys on the keyboard, for example, F2 or ENTER .

Document History 3

© 2015 SAP SE or an SAP affiliate company. All rights reserved.

Document History

Version Date Change

0.9 2015-02-02 Draft Version for Beta- shipment

1.0 2015-07-05 Final version for FS-PM 5.3 SP00 RTC

1.1 2015-11-10 Final version for FS-PM 5.3 SP01 RTC

4 Table of Contents


Table of Contents

1 Introduction ..................................................................................................................................... 6 1.1 Disclaimer............................................................................................................................................... 6 1.2 About this Document ............................................................................................................................ 6 1.3 Required Releases and Support Packages ......................................................................................... 9 1.4 References ............................................................................................................................................. 9 1.5 Abbreviations ....................................................................................................................................... 10 1.6 Constraints ........................................................................................................................................... 10

2 Setting Up Remote Connections and Users .................................................................................. 11 2.1 FS-CML: Create User for RFC Calls and Assign a Role ..................................................................... 11 2.2 Create the RFC Destination from FS-PM to FS-CML ........................................................................ 12 2.3 Service Configuration in SOAMANAGER ........................................................................................... 12

2.3.1 The Loan Contract Retrieve Service .................................................................................. 12 2.3.2 Summary of Services for CML Integration ....................................................................... 24

3 Policy Loan-Specific Settings in FS-CD ........................................................................................ 25 3.1 Policy Loan Settings for Dunning in FS-CD ....................................................................................... 25 3.2 Policy Loan Settings for Interest Calculation in FS-CD .................................................................... 25 3.3 Document Splitting for Transfer Posting in FS-CD .......................................................................... 26 3.4 Setting Up FS-CD for New Functions in FS-PM ................................................................................ 26 3.5 Settings for Automatic Clearing in FS-CD ......................................................................................... 26 3.6 Further Policy Loan-Specific Settings ............................................................................................... 26

3.6.1 Disbursement of a Loan ..................................................................................................... 26

4 Policy Loan Settings in FS-CML .................................................................................................... 28 4.1 Policy Loan-Specific Customizing for Loan Conditions ................................................................... 28 4.2 Policy Loan Customizing for FS-CD Integration ............................................................................... 29 4.3 Other Policy Loan Settings ................................................................................................................. 30

5 Policy Loan-Specific Settings in FS-PM ........................................................................................34 5.1 Interface Customizing for Communication with FS-CML ................................................................ 34 5.2 Policy Loan Customizing in Policy Management .............................................................................. 35

6 Policy Loan Settings in FS-CM ...................................................................................................... 37 6.1 Switch Off Payment Item Splitting ..................................................................................................... 37 6.2 Check of Minimum Repayment Amount ........................................................................................... 37

7 Additional Information ................................................................................................................... 38 7.1 Business Partner Specifics for FS-CML and FS-CD ......................................................................... 38

8 Appendix ........................................................................................................................................43 8.1 Interfaces for External Access to FS-CML Policy Loans .................................................................. 43 8.2 FS-PM Interfaces and BAdIs for Life Benefit Claims Integration .................................................... 46

Table of Contents 5


6


1 Introduction

1.1 Disclaimer

This guide is not part of SAP product documentation. By using this guide, you agree that (unless expressly stated

otherwise in your agreements with SAP) you may not infer any product claims against SAP based on this

information.

1.2 About this Document

Use

This document provides information about how to combine the following SAP products into an integrated

insurance solution for CML-based policy loans:

SAP Policy Management (FS-PM)

SAP Loans Management (Suite edition) (FS-CML)

SAP Collections and Disbursements (FS-CD)

SAP Claims Management (FS-CM)

7


Note: The orchestration layer is the software layer where business processes affecting more than one

business object should be implemented. The business processes for policy loans, for example, require

coordinated access (read, write) to insurance contracts and loan contracts. Loan contracts can be

created (or increased) only if the insurance contract fulfils specific conditions; the access has to be done

in a certain sequence. Coordination of access is neither the duty of a policy system nor of a loan

management system. These individual systems are responsible of their own objects.

The structure package /PM0/A_ORCHESTRATION serves as an entry point to the orchestration layer.

This guide is aimed at system administrators or technical consultants to help them set up the relevant

connections between the different systems. Furthermore, it provides a guideline on what needs to be considered

when configuring and implementing CML-based policy loans.

Chapter 2 of this guide describes how to set up the remote connections and users in the systems involved.

Chapter 3 provides information about the policy loan settings in the FS-CD system that are required to execute

the scenario.

Chapters 4, 5 and 6 provide information about the required configuration settings in the FS-CML system (section

4), in the FS-PM system (section 5), and in the FS-CM system (section 6).

Chapter 7 contains additional information about specific business partner settings for FS-CML and FS-CD.

The Appendix in section 8 contains a list of important interfaces and BAdIs.

Notes:

This guide focuses on the specifics of the new integration scenario for CML-based policy loans. This guide does

not describe existing functions of policy loans in FS-PM (which are relevant only for existing customers) (see also

the references in section 1.2).

8


9


1.3 Required Releases and Support Packages

Prerequisites:

You have installed the following releases.

SAP Policy Management (FS-PM) 5.3

SAP Loans Management (Suite edition) (FS-CML) in SAP ERP 6.0 EHP7

SAP Collections and Disbursements (FS-CD) in SAP ERP 6.0 EHP7

SAP Claims Management (FS-CM) in SAP ERP 6.0 EHP7

You can use the integration scenario for CML-based policy loans with the following support packages:

SAP Policy Management (FS-PM) 5.3 SP01 or higher

SAP Loans Management (Suite edition) (FS-CML) in SAP ERP 6.0 EHP7 SP10 or higher

SAP Collections and Disbursements (FS-CD) in SAP ERP 6.0 EHP7 SP10 or higher

SAP Claims Management (FS-CM) in SAP ERP 6.0 EHP7 SP10 or higher

If you use ERP 6.0 EHP7 SP10, you have to install the following additional SAP Notes:

2231311 - RFC-Baustein für Kontenpflege (FI-CA) (RFC Module for account maintenance (FI-CA))

2239451 - Voraussetzung für Hinweis 2231316 (FS-CD) (Prerequisite for Note 2231316 (FS-CD))

2231316 - RFC-Baustein für Kontenpflege (FS-CD) (RFC Module for Account Maintenenance (FS-CD))

1.4 References

Title Internet Address Description

SAP Policy Management -

Installation Guide

http://help.sap.com/insurance-

pm53 -> Installation and Upgrade

Information -> Installation Guide

Describes the installation process

for the SAP component SAP

Policy Management (FSPM)

Master Guide SAP for Insurance

http://help.sap.com/insurance-

pm53 -> Installation and Upgrade

Information -> Master Guide

Describes the deployment

options for FS-PM running

together with SAP ERP

Master Guide and Installation

Information for SAP ERP

http://service.sap.com/instguides

-> SAP Business Suite Applications

-> SAP ERP -> SAP ERP 6.0 ->

Installation -> ERP 6.0

Installation information for SAP

ERP 6.0

http://help.sap.com/insurance-pm53




http://service.sap.com/instguides

10


1.5 Abbreviations

In the following table, the most important abbreviations used in this integration guide are listed:

Title Abbreviation

SAP Policy Management FS-PM

SAP Loans Management (Suite edition) FS-CML

Collections and Disbursements FS-CD

Claims Management FS-CM

1.6 Constraints

Only the interfaces required for the use of policy loans are available in Loans Management (FS-CML), but there is

no user interface that can be used productively.

The user interface must be built as a customer enhancement in a customer project according to your specific

requirements. SAP Policy Management (FS-PM) delivers functions to greatly simplify the task of connecting the

relevant components.

In the solution for CML-based policy loans, loan contracts must be managed in the same currency as their

insurance contracts. It is currently not possible to support policy loans whose currency does not match that of

their insurance contracts.

11


2 Setting Up Remote Connections and Users

This section describes how to set up the remote connections between FS-PM and FS-CML for CML-based policy

loans. This consists of the following steps:

1. FS-CML: Create user and grant authorization (transaction SU01)

2. FS-PM: Create RFC destination for connectivity to FS-CML (transaction SM59)

3. FS-PM and FS-CML: Configure enterprise services in the FS-PM and FS-CML systems (transaction

SOAMANAGER). This will be described in detail at a later point in time.

Note: Technically, it is possible to use the same user for a connection from FS-PM to FS-CML and from FS-PM to

FS-CD because both FS-CML and FS-CD need to be installed in the same system. This common user then needs

to have all necessary authorization for FS-CML as well as for FS-CD. However, we recommend that you set up

separate users (each with a minimum amount of specific authorization) and separate RFC destinations (also see

the settings in section 5.1).

2.1 FS-CML: Create User for RFC Calls and Assign a Role

The user in the FS-CML system for the RFC calls from FS-PM must have the role SAP_CML_LOANS_OFFICER (or

similar) to be able to perform the necessary steps in the FS-CML system.

To create the user for the RFC calls with the required authorization, proceed as follows in FS-CML:

1. Call up transaction SU01.

2. Create the appropriate user.

3. On the Logon Data tab, enter Dialog in the User Type field (the user must be a dialog user). In all other fields,

you can enter the values according to your requirements.

4. On the Roles tab you can either use the role SAP_CML_LOANS_OFFICER or create a new role and grant the

relevant authorizations.

5. Double-click on the relevant Role field.

6. Choose the Authorizations tab.

7. In the Maintain Authorization Data and Generate Profiles section, choose Change Authorization Data.

8. Save the data.

12


2.2 Create the RFC Destination from FS-PM to FS-CML

To connect FS-PM with FS-CML, you have to create a new RFC destination. This RFC destination needs to be

targeted to the corresponding client in the FS-CML system and the previously created user must be assigned to it.

Use transaction SM59 to create this new RFC destination.

For more information about how to create a remote connection with transaction SM59, see SAP Library for SAP

NetWeaver on SAP Help Portal at http://help.sap.com/nw74 under Application Help->Function-Oriented View->

Application Server-> Application Server Infrastructure-> Functions and Tools of SAP NetWeaver Application

Server-> Connectivity-> Components of SAP Communication Technology-> Classic SAP Technologies (ABAP)->

RFC-> RFC Administration->Maintaining Remote Destinations.

2.3 Service Configuration in SOAMANAGER

The process component Automatic Premium Loan Financing (APLF), which enables the payment of an overdue

open premium by creating a loan, is to a large extent based on enterprise services. The service implementations

for provider and consumers exist; but the services need to be configured in order to be able to send data to the

right system.

If you have in place a Process Integration (PI) system as the message hub, you should use it. In this integration

guide, we explain how to set up the services for simple point-to-point communication without using a PI system.

In the following sections, we explain the setup of the Loan Contract Retrieve service from the service provider side

and from the service consumer side. The other services need to be set up in a similar way.

For more information about the process component Automatic Premium Loan Financing (APLF), see SAP Library

for Policy Management on SAP Help Portal at http://help.sap.com/insurance-pm53 under Application Help->

Policy Management-> Integration-> Enterprise Services for SAP Policy Management->Automatic Premium Loan

Financing.

For more information about the PI system, see SAP Library for SAP NetWeaver on SAP Help Portal at

http://help.sap.com/nw74 under Application Help->Function-Oriented View-> Process Integration.

2.3.1 The Loan Contract Retrieve Service

2.3.1.1 Provider Side

Service Interface: BankAccountContractProcessingManageLoanContractIn

Service Operation: RetrieveLoanContract

Start the transaction SOAMANAGER in the Loans Management (FS-CML) system. Go to Service Administration

Web Service Configuration. Search by object name for RetrieveLoanContract.

Click on cell RETRIEVELOANCONTRACT in the Internal Name column and navigate to Web Service Configuration.

The Define Services and Bindings grid should be blank:

http://help.sap.com/nw74


http://help.sap.com/nw74

13


Click Create Service and fill out the requested fields starting with a service name, a service description text, and a

new binding name:

14


Click Next and make the settings for Provider Security: e.g. for transport level security, message level security, the

authentication settings, all according to the security regulations in your company.

15


Click Next and review the settings for the SOAP protocol. Change them if required.

Click Next and review the operation settings. Change them if required.

16


Click Finish and the systems returns to the grid Define Services and Bindings.

By default, the service is now active and can be consumed.

For the consumer side, you will need the WSDL, which can be accessed by clicking Open Binding WSDL Generation

and Binding level.

At the bottom of the popup, you will find the URL which can be used to configure the service consumer.

Copy it to your notepad (or another appropriate temporary storage).

Now you have done the configuration of the service provider. Let us now go to the corresponding service

consumer.

17


2.3.1.2 Consumer Side

Service Interface: AutomaticPremiumLoanFinancingManageOut

Service Operation: QueryLoanContract

Start the transaction SOAMANAGER in the FS-PM system. Go to Service Administration Web Service

Configuration. Search by object name for AutomaticPremiumLoanFinancingManageOut.

Click /PM0/CO_AOXI_APLF_LC_MNG in the Internal Name column and navigate to Web Service

Configuration. The Define Logical Ports grid should be blank:

18


Click Create and select the first entry WSDL based Configuration. Fill out the requested fields. Do not forget to set

the Logical Port is Default indicator.

19


Proceed with Next. To access the WSDL, you have multiple options. In this example we describe only one. Select

Via HTTP Access for WSDL Base. Then provide the URL to the WSDL of the service provider that you have copied

to the notepad earlier. Enter it in the URL for WSDL Access field. Enter your user name and password to access

the FS-CML system where the WSDL resides.

20


Proceed with Next. This may take a couple of seconds. On the next screen, select the binding.

f

21


Proceed with Next and enter your user name and password.

Note: The content of this screen depends on what you have selected on the Provider Security screen during the

setup of the provider side.

22


We will skip the next screens (HTTP Settings, SOAP Protocol, Identifiable Business Content and Operation

Settings) and leave them as they are. After clicking Finish, we arrive back at the Define Logical Ports grid which

now has an additional entry.

Note that this port is a "Logical Default Port". You finally should try out the "Ping"-function by clicking on the most

right icon in the "Actions" cell.

23


If you have set up the port correctly, a success message is displayed.

Now the first service connection is set up. The FS-PM system (e.g. the process component Automatic Premium

Loan Financing) is able to read loan contracts synchronously from the FS-CML system.

24


2.3.2 Summary of Services for CML Integration

Nr Service Provider Service Provider

Operation

Service Consumer Service Consumer

Operation

1 BankAccountContract

ProcessingManageLoa

nContractIn

RetrieveLoanContract AutomaticPremiumLoan

FinancingManageOut

QueryLoanContract

2 BankAccountContract

ProcessingLoanContra

ctIn_V1

CreateLoanContractAsB

ulk

AutomaticPremiumLoan

FinancingLoanContractO

ut

RequestLoanContractC

reationAsBulk

3 UpdateLoanContractAs

Bulk

RequestLoanContractU

pdateAsBulk

4 LoanDisbursementReq

uestERPBulkCreateRe

quest_In

LoanDisbursementRequ

estERPBulkCreateRequ

est_In

AutomaticPremiumLoan

FinancingLoanDisbursem

entRequestOut

RequestLoanDisburse

mentRequestCreationA

sBulk

5 AutomaticPremiumLo

anFinancingIn

ChangeBasedOnLoanCo

ntractCreationConfirma

tionAsBulk

BankAccountContractPr

ocessingLoanContractOu

t_V1

ConfirmLoanContractC

reationAsBulk

6 ChangeBasedOnLoanCo

ntractUpdateConfirmati

onAsBulk

ConfirmLoanContractU

pdateAsBulk

7 ChangeBasedOnLoanDi

sbursementRequestCre

ationConfirmationAsBul

k

LoanDisbursementReque

stERPBulkCreateConfirm

ation_Out

LoanDisbursementReq

uestERPBulkCreateCon

firmation_Out

Note: In general, you configure the service providers and service consumers. You do not explicitly refer to the

service operations. The system will automatically identify pairs of provider and consumer operations. We have

only mentioned the operations here to give you a brief overview of the available pairs.

25


3 Policy Loan-Specific Settings in FS-CD

To handle policy loans in FS-CD, a number of Customizing entries must be available in the FS-CD system before

you can post data, for example, from FS-CML. The most important entities are as follows:

Company code

Insurance object category

Main transactions and sub-transactions for the loan cash flow (for example, disbursement, interest, and

repayment)

These Customizing entries have to be created in the FS-CD system before they can be used in the upstream

systems. However, most of these entries are already available with the old FS-PM-based solution for policy loans.

Thus, in the following sections we will focus on the settings that are required for the new integration scenario for

CML-based policy loans.

3.1 Policy Loan Settings for Dunning in FS-CD

Check if the main transaction or sub-transaction setting of the according company code allows dunning.

Choose Customizing for SAP Insurance under Collections/Disbursements -> Basic Functions -> Postings and

Documents -> Document -> Maintain Document Assignments -> Maintain Transactions for FS-CD -> Define

and Parameterize External Transactions.

Configure a dunning procedure and check if the interest determination is active for each dunning level.

Choose Customizing for SAP Insurance under Collections/Disbursements -> Business Transactions->

Dunning -> Dunning by Dunning Procedure -> Configure Dunning Procedure.

Define a dunning variant that points to the dunning procedure and assign this variant to the FS-CD insurance

contract. Choose Customizing for SAP Insurance under Collections/Disbursements -> Business Transactions

-> Dunning -> Dunning by Dunning Procedure -> Define Dunning Variants.

3.2 Policy Loan Settings for Interest Calculation in FS-CD

Create a dummy interest calculation rule without assigning a condition. Choose Customizing for SAP

Insurance under Collections/Disbursements -> Business Transactions -> Interest Calculation -> Define

Interest Calculation Rules.

Create a dummy interest key for the dummy rule. Choose Customizing for SAP Insurance under

Collections/Disbursements -> Business Transactions -> Interest Calculation -> Define Interest Key.

Assign a main transaction and sub-transaction for that dummy interest key in the posting area V070. Choose

Customizing for SAP Insurance under Collections/Disbursements -> Business Transactions -> Interest

Calculation -> Balance Interest Calculation -> Assign Main and Sub-Transactions to Interest Keys.

Register a suitable function module for event 2075 to perform the interest calculation in CML. Check if

function module FSCD_SAMPLE_CML_2075 meets your requirements. Otherwise, you may use it as a

template for a customer specific function module.

26


3.3 Document Splitting for Transfer Posting in FS-CD

Activate document splitting for transfer postings in FS-CD. Create an installation-specific function module and

register this module for event 5130. Both parameters DOCUMENT_SPLITTING_ON and

SPLITTING_CRITERIA_XBLNR must be set.

3.4 Setting Up FS-CD for New Functions in FS-PM

The SAP Notes 2085693 - Setting up FS-CD for new functions in FS-PM Release 5.3 and 2233327 - Setting up FS-

CD for Automatic Premium Loan in FS-PM Release 5.3 are required for the integration between FS-PM and FS-CD

in the automatic premium loan scenario.

3.5 Settings for Automatic Clearing in FS-CD

In the automatic premium loan scenario, the dunned open item for the premium is automatically cleared with the

disbursement of the automatic premium loan. To be able to generate the reconciliation key for the automatic

clearing an entry with value 'PM0' has to exist.

Choose Customizing for SAP Insurance under Collections/Disbursements -> Data Transfer -> Maintain Caller ID

for External Interfaces:

3.6 Further Policy Loan-Specific Settings

3.6.1 Disbursement of a Loan

Automatic G/L account determination for the main transactions and sub-transactions for policy loans:

Define the reconciliation accounts to which receivables and payables are to be posted.

27


Choose Customizing for SAP Insurance under Collections/Disbursements-> Basic Functions-> Postings and

Documents -> Document -> Define Account Assignments for Automatic Postings -> Automatic G/L Account

Determination -> Define Accounts for Receivables/Payables.

Deferred Revenue Postings for Policy Loans:

Enter the delayed revenue accounts for your revenue accounts. You enter a delayed business area and a

delayed revenue account for a business area/revenue account combination.

Choose Customizing for SAP Insurance under Collections/Disbursements ->Business Transactions->

Deferred Revenue Postings -> Maintain Account Determination for Time-Based Deferred Revenue Postings.

28


4 Policy Loan Settings in FS-CML

4.1 Policy Loan-Specific Customizing for Loan Conditions

SAP delivers three condition structure types:

o S00 Interest rate fixed, no spread

o S01 Interest rate variable, spread variable (V1 + V3)

o S02 Int. rate fixed, spread var. (Int. +/*/- Spread)

For more information about the condition structure types, see Customizing for SAP Banking under Loans

Management -> Basic Settings -> Policy Loan Integration -> Define Condition Structure Types.

The underlying table has a customer namespace and can be enhanced with customer-specific types.

For non-SAP condition structure types, you have to implement the Business Add-In (BAdI)

FVD_PL_CONTRACT (methods CHANGE_CONDITIONS, CHANGE_CONTRACT, CHANGE_PARTNER) to

adjust contract master data during creation according to the condition structure type (mandatory). They can

also be used for adjustments for S00, S01, and S02 (optional).

For more information about the BAdI FVD_PL_CONTRACT, see Customizing for SAP Banking under Loans

Management -> Basic Settings -> Policy Loan Integration -> Business Add-Ins (BAdIs) -> BADI: Master Data.

A sample contract must be assigned to one of the combinations of condition structure type and product type.

This relation is evaluated when FS-PM requests FS-CML to create a policy loan.

Only samples that match the requirements of condition structure types can be assigned (S00, S01, and S02).

Samples for customer-specific condition structure types can be checked with Business Add-In (BAdI)

FVD_PL_CONTRACT, method CHECK_SAMPLE).

For more information about the assignment, see Customizing for SAP Banking under Loans Management ->

Basic Settings -> Policy Loan Integration -> Assign Samples to Condition Structure Types.

29


Note:

The product type 32B contains values for policy loans.

The product type 32C contains values for automatic premium loans (APLs).

4.2 Policy Loan Customizing for FS-CD Integration

Assign the FS-CD attributes (for example the insurance object category) to the product type.

Choose Customizing for SAP Banking under Loans Management -> Basic Settings -> Policy Loan Integration -

> Assign Default Values for Product Type.

Assign the FS-CD attributes (for example main transactions and sub-transactions) to the FS-CML product

type and flow type. Choose Customizing for SAP Banking under Loans Management -> Basic Settings-> Policy

Loan Integration-> Assign Transactions and other Values and Activate CD Posting per Flow Type.

For the integration of policy loans with FS-CD, you can implement the Business Add-In (BAdI) FVD_PL_CD.

For more information about the BAdI FVD_PL_CD, see Customizing for SAP Banking under Loans

Management -> Basic Settings -> Policy Loan Integration -> Business Add-Ins (BAdIs) -> BAdI: Integration with

FS-CD.

30


4.3 Other Policy Loan Settings

Define additional data for the company codes you use:

Choose Customizing for SAP Banking under Loans Management -> Basic Settings -> Organization -> Define

Company Code Additional Data.

Define new product types for policy loans with FS-CD integration:

Choose Customizing for SAP Banking under Loans Management -> Transaction Management -> Product

Types -> Define Product Types.

Note:

The product type 32B contains values for policy loans.

The product type 32C contains values for automatic premium loans (APLs).

Select the Integration with Policy Management / Collections and Disbursements (Integr. With PM/CD)

checkbox.

31


Define company code settings for the product type.

Choose Customizing for SAP Banking under Loans Management -> Transaction Management ->

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

When you define the status per product type, make sure the Setting for FI posting is 3 (Actual records

in subledger, FI posting with customer). The settings for FI posting determine whether Treasury flows

are posted to Financial Accounting (FI).

You can make further settings, for example:

o Define a new condition group for policy loans with FS-CD integration and assign conditions and flow types

per application.

To do so, choose Customizing for SAP Banking under Loans Management -> Transaction Management ->

Condition Types -> Define Condition Groups.

For example, the condition group 600 Policy Loans with FS-CD int.is available.

32


o Reversal of postings in FS-CML with posting to FS-CD:

In this step, you assign activity categories to reversal transaction categories. This is necessary to display

documents in the reversal transaction. Make your entries for the product type for policy loans in the

company code.

Choose Customizing for SAP Banking under Loans Management -> Functions -> Accounting -> Reversal -

> Assign Activity Category to Group Reversal Transaction.

33


o You can define the account assignment references you need. The account assignment reference

determines the general ledger account (balance sheet account) to which a financial product is to be

posted in Financial Accounting.

Choose Customizing for SAP Banking under Loans Management -> Functions -> Accounting -> General

Ledger Update-> Define Account Assignment Reference and Control Automatic Determination of Account

Assignment Ref.

o You can make the required settings for a payoff.

Choose Customizing for SAP Banking under Loans Management -> Functions -> Business Operations->

Payoff / Notice.

To execute a borrower change, you have to define a borrower change reason and assign a transfer

reason (FS-CD open item transfer) to the same. Choose Customizing for SAP Banking under Loans

Management -> Functions -> Business Operations-> Borrower Change-> Assign Transfer Reason to

Reason for Borrower Change (view V_VDPL_TRS_RSN).

34


5 Policy Loan-Specific Settings in FS-PM

5.1 Interface Customizing for Communication with FS-CML

To enable the communication from FS-PM to FS-CML, set up the interface Customizing in transaction SPRO.

Choose Policy Management -> Integration -> Process Primary Settings for Interfaces to External Systems.

On the Logical Destinations level, make the following settings:

Name: CL - Loans Management

Logical Destination: Use the created connection from Chapter 2.2

Dialog Destination: Use the created connection from Chapter 2.2

On the Assign Classes to Logical Destinations level, make the following settings:

LoB Name: LL

Class Interface: /PM0/CL_AB_INT_CML

35


5.2 Policy Loan Customizing in Policy Management

In Customizing under Policy Management-> Integration-> Loans Management FS-CML-> Policy Loan, execute the

following Customizing activities:

Define Product-Dependent Conditions for Policy Loans

In this Customizing activity, you determine for the policies of a certain product module how the related policy

loan should be managed in Loans Management (FS-CML) and which product dependent conditions should be

applied.

If you use automatic premium loans, assign a separate product type for automatic premium loans to

differentiate it from other policy loans.

Under Business Add-Ins:

BAdI: Create and Increase a Policy Loan with UI (/PM0/AOAL_POLICY_LOAN_BADI)

You can use this BAdI for a customer solution when you want to calculate the maximum loan amount, or to

create and increase a loan contract in Loans Management (FS-CML), from the orchestration layer of the

system that coordinates policy loans. For more information, see the documentation of the Customizing

activity.

BAdI: Calculation of Maximum Loan Amount (/PM0/ABT_MAX_LOAN_AMOUNT_BADI)

You can use this BAdI in a customer solution to calculate the maximum loan amount of an insurance contract.

For instance, you can implement the calculation of the maximum loan amount for the functional creation or

increase of a policy loan.

For more information, see the documentation of the Customizing activity.

BAdI: Date Determination for Automatic Premium Loan (/PM0/ABP_APRLN_DATE_SRVC_BADI)

You can use this BAdI to control the date determination for the execution date of the automatic premium

loan. The date determination can be differentiated by product module group. For more information, see the

documentation of the Customizing activity.

BAdI: Encapsulation of Write Accesses to FS-CML (/PM0/ABT_WRITE_CML_BADI)

This BAdI encapsulates the write access to Loans Management (FS-CML), which is then run in the release.

This BAdI enables you to change or enhance the service calls, or to change the calls of the RFC function

modules of FS-CML. For more information, see the documentation of the Customizing activity.

In Customizing under Policy Management-> In-Force Business Management-> Basis-> Business Transactions,

Actions, and Process Steps -> Business Add-Ins (BAdIs)

BAdI: Check Change Loan Characteristics (/PM0/ALP_LOANCH_CHECK_BADI)

36


You can use this BAdI to check if the Change Loan Characteristics business transaction can be completed. For

instance, you can control which fields in the Change Loan Characteristics business transaction must be changed

to justify completion in the Change Loan Characteristics business transaction.

In Customizing under Policy Management -> Integration-> Claims Management FS-CM-> Business Add-Ins

(BAdIs) -> General Functions for CM Interface execute the following policy loan-specific Customizing activities:

BAdI: Settlement of Policy Loan

You can use this BAdI to settle policy loans that were created in Loans Management (FS-CML).

In Customizing under Policy Management-> In-Force Business Management-> Basis-> Transfer Business->

Business Add-Ins (BAdIs), execute the following Customizing activities:

BAdI: Checks Before Transfer Business

You can use this BAdI to make customer-specific adjustments before the execution of a transfer business

(product change, sales product change, replacement business). For more information, see the

documentation of the Customizing activity.

In Customizing under Policy Management -> In-Force Business Management -> Basis-> Update -> Time Model,

execute the following Customizing activity for the use of automatic premium loans:

Define Execution Criteria for Time Model Functions

Define a product module group that contains the time model functions APRLNDUNR and APREMLOAN for the

automatic premium loan, but does not contain the time model functions SISUBDUNR and SINGLESUB for the

single substitution, since automatic premium loan and single substitution should not be used together in one

product.

37


6 Policy Loan Settings in FS-CM

For more information about setting up a connection from FS-CM to FS-PM, see SAP Library for Claims

Management in SAP ERP on SAP Help Portal at http://help.sap.com/insurance-cm -> Claims Management -

>Claim-> Life-Specific Concepts in Claims Processing -> Customizing Settings for Life Benefit -> Interface to Policy

System.

6.1 Switch Off Payment Item Splitting

The open loan interest and principal loan receivables are offset by the payment in FS-CM. This offset is reflected in

the contract account of the policy loan as a credit posting in FS-CD. Depending on the number of one-time benefit

values of the claim, FS-CM splits this posting into multiple documents.

To switch off payment item splitting in FS-CM, deselect the Payment Plan Items Not Compressed checkbox in

Customizing under SAP Insurance -> Claims Management -> Claim -> Business Settings ->

Payments/Subrogation/Recovery -> Special Settings for FS-CD -> FS-CD: Define Contract Acct Creation Variant

and Insurance Object for Claim.

6.2 Check of Minimum Repayment Amount

A withdrawal through FS-CM (external partial surrender) leads to a reduction of the insurance contract reserves.

Before the payout can happen, you must ensure that the loan contract is still covered after the withdrawal.

Otherwise the calculated minimum repayment amount needs to be repaid by offsetting the loan contract.

FS-CM provides a Business Add-In that enables you to run your own checks for the loan. This Business Add-In

enables you to check the minimum repayment amount. In Customizing, choose SAP Insurance -> Claims

Management-> Claim -> Technical Settings -> Business Add-Ins Specific to Life Benefit -> Policy Loan -> BAdI:

Check Data for Policy Loan.

FS-CM provides a Business Add-In that enables you to determine this amount. In Customizing, choose SAP

Insurance -> Claims Management-> Claim -> Technical Settings -> Business Add-Ins Specific to Life Benefit ->

Policy Loan -> BAdI: Policy Loan Interface. The minimum repayment amount can be retrieved from FS-PM by

calling the /PM0/ALT_CM_CALC_MIN_REPAYMENT function module.

http://help.sap.com/insurance-cm

38


7 Additional Information

7.1 Business Partner Specifics for FS-CML and FS-CD

The components FS-PM, FS-CML, FS-CD, and FS-CM all use the SAP Business Partner (FS-BP) for personal data

such as names, addresses, bank data and more. In a productive environment, FS-CML, FS-CD, and FS-CM have to

be installed in the same SAP NetWeaver instance with a local FS-BP installation in place, whereas FS-PM accesses

the same business partner data remotely.

Business partners need to fulfill certain criteria so that they can be used in policy loan scenarios (for example,

there must be a customer number for the BP so that a loan disbursement can be made in FS-CML).

This is a description about how to create a business partner that fulfills these criteria.

1. Start transaction BP in the FS-CML/FS-CD/FS-CM system to create a new BP

1.1 Create a new business partner.

1.2 Use business partner grouping TR02 and specify a business partner ID.

Fill in the data for title, name, address, and search term.

39


1.3 Change the address validity to 01/01/2000

1.4 Enter the required data on the Identification tab.

40


1.5 Enter the bank details on the Payment Transactions tab.

1.6 Save the business partner. Once you have done so, the application changes to display mode.

2. Switch to change mode and add new business partner roles.

2.1 Add the role TR0100 (Main Loan Partner).

2.2 Save the business partner in the new role.

2.3 Create a customer by selecting the Create Customer checkbox on the Customer: General Data tab page and

save.

41


If the customer creation was successful, the customer number field is filled when you save the

business partner. If the customer number is not filled by the system, add the BP role FLCU01

Customer and save it again.

Finally it should look like this:

3. Enter the company code data.

3.1 Enter a reconciliation account on the Account Management tab page.

42


3.2 Enter the payment methods and a house bank on the Payment Transactions tab page.

3.3 Save the business partner.

4.0 Switch to change mode and add new business partner roles.

4.1 Add the role MKK (Contract Partner).

4.2 Save the business partner in the new role.

You can now start using this business partner to run the CML-based policy loan scenarios.

43


8 Appendix

8.1 Interfaces for External Access to FS-CML Policy Loans

Note: Please also have a look at the system for the function modules of the mentioned

function groups.

Function group FVD_PL_RFC

RFC access related to policy loans

FVD_PL_COND_GET

Get condition types for capital increase (KAER)/ capital decrease (MAIN)

FVD_PL_COND_STRUC_TYPES_GET

Get condition structure types (S00, S01) for PLI company code/product type

FVD_PL_CONTRACTS_GET

Get contracts for each insurance contract

FVD_PL_CONTRACT_ADD_PARTNER

Add a new partner to the insurance object (used before or during borrower change)

FVD_PL_CONTRACT_CAPITALS_GET

Get contract capitals on key date

FVD_PL_CONTRACT_CHANGE

Change policy loan (CALL TRANSACTION for loan change)

FVD_PL_CONTRACT_CHANGE_DATE

Change end date of a policy loan (fixed until date/term end)

FVD_PL_CONTRACT_CHANGE_INSR_ID

Change insurance contract ID in CML contract

FVD_PL_CONTRACT_CHANGE_STATUS

Change (external) status of a policy loan (VDARL-SSTATI)

FVD_PL_CONTRACT_CHECK

Check policy contract (is an insurance object assigned?)

44


FVD_PL_CONTRACT_CREATE

Create a policy loan (CALL TRANSACTION FNV6)

FVD_PL_CONTRACT_DISBURSE

Disburse policy loan (CALL TRANSACTION FNVD or with API)

FVD_PL_CONTRACT_DISPLAY

Display policy loan (CALL TRANSACTION FNVS)

FVD_PL_CONTRACT_END_POSTING

Update planned records and post (to prepare termination of a contract)

FVD_PL_CONTRACT_GET_PER_TRANS

Get contract number for each business transaction number

FVD_PL_CONTRACT_GET_PLAN_SUMS

Get sums from planned records for each flow type group

FVD_PL_CONTRACT_GET_TRANS

Get main transaction and sub-transaction for each contract/flow type group

FVD_PL_CONTRACT_INCREASE_CAP

Increase contract capital (add capital increase condition)

FVD_PL_CONTRACT_REPAIR

Repair policy contract if necessary (create insurance object)

FVD_PL_INT_REF_GET

Get available interest references

FVD_PL_IOA_CALCULATE

Calculate IOA based on contract conditions

FVD_PL_PAYOFF_CREATE

Create a payoff (CALL TRANSACTION FN8X)

FVD_PL_PAYOFF_CREATE_WITH_API

Create a payoff (with payoff API)

FVD_PL_PAYOFF_TEMPL_ID_GET

Get payoff template IDs per product type/company code

FVD_PL_PROD_TYPE_GET

Get product types for policy loan integration per company code

FVD_PL_SAMPLE_GET_PER_TYPE

Get sample contract for a given condition structure type

45


Function group FVD_PL_QRFC

Function modules for qRFC access related to policy loans

FVD_PL_Q_CONTRACT_CHANGE_DATE

Change end date of a policy loan

FVD_PL_Q_CONTRACT_CHG_INSR_ID

Change insurance contract ID

FVD_PL_Q_CONTRACT_END_POSTING

Update planned records and post (to prepare termination of a contract)

FVD_PL_Q_PAYOFF_CREA_WITH_API

Create a payoff with API

FVD_PL_Q_UPD_PLANNED_RECORDS

Update planned records

Enhancement Spot FVD_PL (Policy Loan Integration)

Note: Please also have a look at the enhancement spot FVD_PL in the system for the

relevant Business Add-Ins (BAdIs) and their methods.

FVD_PL_CD BAdI for Integration of Policy Loans with FS-CD

Methods:

DETERMINE_TRANSACTION

Determine Main/Sub-Transaction

CHANGE_PPI_REMOTE

Change Payment Plan Items (CD in remote destination)

CHANGE_PPI_LOCAL

Change Payment Plan Items (CD and CML in same system)

CHANGE_DATA_INSOBJECT_CREATION

Change Data before Creation of Insurance Object

CHANGE_DATA_INSOBJECT_CHANGE

Change Data before Change of Insurance Object

TRANSFER_OPEN_ITEMS

Transfer Open Items

46


CHANGE_ROLE_RELEVANT

Check if partner in certain role shall be assigned to insurance object

FVD_PL_CONTRACT BAdI for master data (Policy Loan Integration)

Methods:

CHECK_SAMPLE

Check Sample Contract (after assignment to condition structure type)

CHANGE_CONDITIONS

Change Conditions (VZZKOPO) (during creation) (can be used to change data according to own condition

structure types)

CHANGE_CONTRACT

Change Contract (VDARL) (during creation)

CHANGE_PARTNER

Change Partner (VDGPO) (during creation)

CHECK_MODE

Check if Mode (Display, Create ...) is allowed (to be able to start for example FNVM for a policy loan)

8.2 FS-PM Interfaces and BAdIs for Life Benefit Claims Integration

Function group /PM0/ALT_CM_CM2FSPM

Life Services Claims Interface

Note: We only list the most relevant function modules (for more information, see the

function group in the system):

/PM0/ALT_CM_CALCULATE_BENEFIT

Calculates the Benefit

/PM0/ALT_CM_CALC_MIN_REPAYMENT

Calculates the Minimum Repayment Amount

/PM0/ALT_CM_EXECUTE_CTR_CHG

Executes the Contract Change

/PM0/ALT_CM_GET_PREM_LOAN_DATA

Determines Premium and Loan Data

47


Enhancement Spot /PM0/ALT_CM_BADI_ES

Claim/FS-PM integration for Life Benefit

Note: We only list the most relevant BAdIs (for more information, see the enhancement

spot in the system).

/PM0/ALT_CM_CALC_BNF_BADI

BAdI for Calculation of Benefit

/PM0/ALT_CM_EX_CTR_CHG_BADI

BAdI for Claim Life Service "Contract Restructuring"

/PM0/ALT_CM_GET_PRMLON_BADI

BAdI for Claims - Life - Services Premiums - Loan Data

Enhancement Spot /PM0/ALT_CM_STL_LOAN_BADI_ES

Settlement of Policy Loan

BAdI contained:

/PM0/ALT_CM_STL_LOAN_BADI

BAdI: Settlement of Policy Loan

www.sap.com/contactsap


No part of this publication may be reproduced or transmitted in any

form or for any purpose without the express permission of SAP SE

or an SAP affiliate company.

SAP and other SAP products and services mentioned herein as well

as their respective logos are trademarks or registered trademarks of

SAP SE (or an SAP affiliate company) in Germany and other

countries. Please see http://www.sap.com/corporate-

en/legal/copyright/index.epx#trademark for additional trademark

information and notices. Some software products marketed by SAP

SE and its distributors contain proprietary software components of

other software vendors. National product specifications may vary.

These materials are provided by SAP SE or an SAP affiliate company

for informational purposes only, without representation or warranty

of any kind, and SAP SE or its affiliated companies shall not be liable

for errors or omissions with respect to the materials. The only

warranties for SAP SE or SAP affiliate company products and

services are those that are set forth in the express warranty

statements accompanying such products and services, if any.

Nothing herein should be construed as constituting an additional

warranty.

In particular, SAP SE or its affiliated companies have no obligation to

pursue any course of business outlined in this document or any

related presentation, or to develop or release any functionality

mentioned therein. This document, or any related presentation, and

SAP SE’s or its affiliated companies’ strategy and possible future

developments, products, and/or platform directions and

functionality are all subject to change and may be changed by SAP

SE or its affiliated companies at any time for any reason without

notice. The information in this document is not a commitment,

promise, or legal obligation to deliver any material, code, or

functionality. All forward-looking statements are subject to various

risks and uncertainties that could cause actual results to differ

materially from expectations. Readers are cautioned not to place

undue reliance on these forward-looking statements, which speak

only as of their dates, and they should not be relied upon in making

purchasing decisions.