IS 604: Contemporary Issues in IS Banking Enterprise Systems · PDF fileChair of Information Systems IV (ERIS) Institute for Enterprise Systems (InES) IS 604: Contemporary Issues in

Chair of Information Systems IV (ERIS)

Institute for Enterprise Systems (InES)

IS 604: Contemporary Issues in IS

Banking Enterprise Systems

Prof. Dr. Alexander Mädche

Chair of Information Systems IV

Institute for Enterprise Systems

Lecture

supported by:

Agenda – Session III

Agenda

1 B2tec Company Overview

2 Introduction to SAP Banking Services

3 SAP Business Partner

4 Contract Management

… …

IS 604 Banking Enterprise Systems

2

SAP Business Partner for Financial Services 3

Co

rre

spo

nd

en

ce

Pe

riod

ic

Pro

cessin

g

Double,

Triple,

Quadruple

Control

Archiving

Product Configuration

Accounting

Financial Conditions/Pricing

Contract Management

Financial

Customer

Information

Management

Reporting

Collateral

Insurance

Order Management/

Business Operation

Posting Control Processing/

Exception Handling

Open Item Management

Combined Settlement

Payment Distribution & Monitoring

Master Contract Management

Posting Lock

Management Settlement

Currency

Conversion

Cash Flow Item Management/

Payment Services

Billing and Invoicing Payment Distribution

Pooling

Credit Facilities


SAP Business Partner for Financial Services 4 F

ron

t-O

ffic

e

Mid

-Off

ice

Ba

ck-O

ffic

e

Contact Advisory Offer Deal Mainte

nance

Create BP

Create

Account

Maintain

BP

Maintain

Account

Settle

Account

Create

Product Maintain

Product

Maintain

Conditions

Create

Conditions Assign

Product

Define Ind.

Conditions

Manage

Payments

Maintain Product

Pricing List

Create Product

Pricing List

Account

Settlement

Posting

Control

Business

Processes

Business

Events

Business

Transactions

Book on internal

accounts Reporting

Account

Closure

Current account life-cycle

Order

Management

Payments


SAP Business Partner for Financial Services


5

Describe Business Partner (BP) concept

and its structure in SAP

Specify BP categories

Explain the use of BP roles and

relationships

Define BP master data and functions

Explain distribution of BP data within the

system landscape

GOALS OF THIS UNIT

6 Agenda: SAP Business Partner for Financial Services


Agenda

1 Business Partner Concept

2 Changing and Managing Business Partner Data

3 Business Partner Function

4 Business Partner Enhancement Concept

5 Integration Options in a System Landscape

Master Data Management (MDM)

Master data specifies the essential business entities a

company’s business activities are based on. Such entities

are, for example, business partners (customers,

suppliers), products, or employees

MDM comprises all activities for creating, modifying or

deleting a master data class, a master data attribute, or a

master data object, i.e. the modeling, provision, quality

management, maintenance, and archiving of master data.

-> A very important business entity that stores all

customer relevant data in SAP is the Business Partner

(BP)

7

Smith and Mckeen (2008)

IS 540 – Management of Enterprise Systems

Business Partner Concept 8

Central SAP application for saving and managing all process-relevant customer

details

Closely linked to other components in the area of operational banking and in

particular to Account Management

Business Requirements

BP at the center of the business

BP participation in various business

processes

Company-specific details and design

Cooperation with applications in

existing system landscape

SAP Business Partner

BP once only in the system

BP role concept

BP relationships

Extensibility / configurability (release-

insensitive)

Communication using predefined

interfaces, methods, and services


Business Partner Concept: BP Structure in SAP 9

SAP BP is a cross-application component and contains cross-industry functions and services for managing

business partner data.

Central data layer and financial services layer form the basis for all SAP systems. In addition customers and

partners have possibility to enhance the data and functionality shipped in the standard system. The outer

layers exist only in specific solutions: as CRM layer exists only in SAP CRM; Banking Services exists

only in Banking Services from SAP, etc.


CRM

Financial Services

Central

Data

Customer

Central Data

Functions

Financial Services

data and functions

ERP-specific

enhancements

Central Data

Functions

Financial Services

data and functions

Banking-specific

enhancements

Central Data Functions

Financial Services data

and functions

CRM-specific

enhancements

Business Partner Concept: Category 10

The business partner category describes the characteristics of a

business partner

It is not possible to create additional business partner categories

BP category cannot be changed retrospectively

Categories of Business Partners

Persons Organizations Groups

Private persons

Personal data

Companies,

subsidiaries, …

Company data

Households,

domestic

partnerships, …

Group data


Business Partner Concept: Grouping 11

BP Grouping is a classification assigned when creating a business partner. This assignment

cannot be changed at a later stage. Grouping enables:

Grouping enables division of the BP according to any number of user-defined criteria

Assignment must be made for each BP

Grouping is defined and configured in Customizing

Each grouping has a number range interval assigned to it

Number range determines:

Internal assignment – BP number assignment is done by the system while BP creation

External number assignment – BP number has to be assigned manually by the user

Permitted numbers – permitted number range interval

Example:

Grouping for VIP

BP Grouping for BP

# Number Range #

0000001 - 0999999

# Number Range #

1000000 - 1999999


According to user-defined criteria customer

will be assigned to the first or second

grouping. Depending on the grouping

assignment customer will get a permitted BP

number when first entered into the system.

In case of ‘preferred’ customers the BP

number can range within the interval of 1 –

999999.

The possible usage of grouping might be for

internal information/ marketing purposes

Business Partner Concept: Role 12

BP roles describe rights and obligations of business partners in different business transactions.

Roles classify business partner according to business criteria and can be maintained on a time-

dependent basis. BP can have more than one role assigned to it.

Example:

Business Activity/Transaction: Corresponding roles in SAP:

Create loan account Account holder

Send bank statement Correspondence recipient

Issue a card Card holder

Business

Transaction …

SA

P B

usin

ess P

art

ner Role 1

Role 2

Business

Transaction 1

Business

Transaction 2

Role …

Attribute 1

Attribute 2

Attribute …

Attribute 1

Attribute 2

Attribute …

Attribute 1

Attribute 2

Attribute …


Business Partner Concept: Role Configuration 13

SAP Business Partner for Financial

Services has a large number of field

attributes. These attributes are made

available to BP data maintenance

through assignment to BP roles.

Thus, depending on the BP role field

attributes are defined that:

• Require an entry (required entry)

• Are ready for input (optional entry)

• Are displayed (display only)

• Are hidden (hide)

Example:

Field “Occupation” depending on the role that was

assigned to the business partner might be hidden, optional,

mandatory, or just displayed.


Business Partner Concept: Relationship 14

A business partner relationship represents the business connection between two or more

business partners

Time-dependency

Relationship categories can be sub-divided into types

Relationships can be displayed as a list, hierarchy, and network

Business Partner

Relationship

Business Relationship

Category

Business Partner

1

2

1. Business Relationship Category has to be defined to

determine the business-related characteristics of a

relationship between BP.

one-way / two-way relationship category

extension of relationship category by addition of

more attributes or creation of new relationship

category

2. Business Partner Relationship is assigned to

business partners.

selection of necessary attributes

relationship limits in time frame


Business Partner Concept: Relationship 15

Example:

Marriage Partnership:

View 1: Belong to Marriage

Partnership

View 2: Has partner in

Marriage Partnership

Relationship between a

married couple as a BP

(category ‘group’) and natural

person as a BP

Is married to:

Relationship between two BP

(both belonging to the category

‘natural person’)


16 Agenda: SAP Business Partner for Financial Services


Agenda






Changing and Managing Business Partner Data 17

Most important business partner data includes:

Name and address of business partner

Supplementary data depending on business partner category

Relationships

Business partner roles

Legitimating, identification data

Credit standing data

Financial statement data or analysis

Total commitment

As well there are industry-specific enhancements for Financial Services, CRM and ERP

Managing additional data

Address Management:

• Any number of addresses can be created for a BP on time-dependent basis and classified into address

types.

Identification Numbers:

• Various identification types can be defined in customizing

Occupation:

• Several occupation types can be created in customizing and assigned to BP


Agenda: SAP Business Partner for Financial Services 18


Agenda






Business Partner Function 19

Central Functions:

Postal validation

internal and external tools for country-specific address validation. SAP internal tool provides only direct match

against address functionality, certified third-party tools can support error-tolerant search within address pools.

Duplicate check

aimed on preventing duplicates in the system when creating BP

Check rules for bank details and credit cards

available checks to ensure data quality

Data cleansing

aimed for merging BP duplicates, a cleansing tool with extensive functions on data and attribute level is

available

Search

flexible search help with different available search criteria

Total Commitment

intended for employees in operational business who require an overview of the contracts, balances and

customer relationships of the business partner. The function provides data in real time or data can be read

from the filled buffer table. Data can be read from SAP as well as non-SAP applications.


Business Partner Function: Total Commitment

IS 540 – Management of Enterprise Systems

20



Agenda






Business Partner Enhancement Concept 22

For enhancing existing BP data model Easy Enhancement Workbench tool is available:

Wizard for creating simple enhancements New attribute fields in BP

New tables in BP

Automatic generation of: ABAP data dictionary (DDIC) enhancements (database tables, domains, and so on)

Dialog screens

Function modules

Customizing tables

Application Programming Interfaces (APIs) for creating, reading, changing, deleting

Enhancement of external interfaces

Connection to change documents and archiving

Simple prototyping possible

No programming, ABAP data dictionary or Business Data Toolset (BDT) expertise

is required

Connection to BI (Business Intelligence)




Agenda






Integration Options in a System Landscape 24

Within the complex system landscape it is possible to have only one BP master data only

accessed by all applications

Integration options:


SAP

FS-BP

Services

BAPIs

Complex

Interfaces

EDT

Direct Input

Complex

Interfaces

Services

BAPIs

CRM MW

PI

Interfaces on data level

Process modeling

Initia

l loa

d

Re

plic

atio

n / d

istrib

utio

n

For initial load direct input, External Data

Transfer (EDT) and complex interfaces are

available

For interfaces on data level enterprise

services, Business Application Interfaces

(BAPIs) and complex interfaces are available

For process modeling purposes enterprise

services and Business Application Interfaces

are available

For data replication/distribution within SAP

systems in the existing landscape CRM

Middleware and Process Integration (PI) also

known as Exchange Infrastructure (XI) are

available. PI can be used as well for data

distribution between non-SAP systems

SAP Business Partner for Financial Services 25

Business Partner in SAP is a central master data that that is created

only once in the system and can be accessed by all other SAP and non-

SAP applications.

There are three business partner categories in SAP: Person,

Organization and Group. BP Categories describe characteristics of BP

and, they are delivered by SAP and cannot be changed or enhanced.

The layered structure of business partner master data in SAP fulfills

industry-specific requirements for BP and provides possibility to

customers and partners to enhance it, while remaining the core layer of

central data unchanged.

In SAP BP role concept is used to define business activities, in which

business partner can be allowed in, example: account holder,

correspondence recipient, etc.

BP Relationship concept serves to establish a business connection

between two or more business partners.

Total Commitment is one of central functionalities of SAP BP that

enables complete view of BP master data (such as contracts) and

transactional data (such as payments) with all related information across

the system landscape.

Easy Enhancement Workbench (EEW) is one of the tools for BP data

model enhancement. EEW is wizard-based and does not require any

programming skills.


Documents

IS 604: Contemporary Issues in IS Banking Enterprise Systems · PDF fileChair of Information Systems IV (ERIS) Institute for Enterprise Systems (InES) IS 604: Contemporary Issues in