presentation - improve your bank communication with sap erp

7/27/2019 Presentation - Improve Your Bank Communication With SAP ERP

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Improve Your Bank

Communication with SAP

ERPSAP Bank Communication Management &

SAP Integration Package for SWIFTSAP In-House Cash

Christian MnichSuite Solution ManagementSAP AG

January, 2009



© SAP AG 2009. All rights reserved. /

Legal Disclaimer

This presentation is a preliminary version

and not subject to your license agreementor any other agreement with SAP.

This document contains only intended

strategies, developments, and functionalities

of the SAP® product and is not intended to

be binding upon SAP to any particular course of business, product strategy, and/or

development. Please note that this document

is subject to change and may be changed

by SAP at any time without notice.

SAP assumes no responsibility for errorsor omissions in this document.



© SAP 2007 /

Agenda

SAP ERP Financials Overview

Corporate-to-Bank Connectivity



© SAP 2007 /

Trends In the Financial World

© SAP 2007 / Page 4

FinancialExcellence

Gain Efficiencyin Finance

Drive Strategy

and Growth

Manage Risk

and ComplianceOptimize

Working Capital



© SAP 2007 / © SAP 2007 / Page 5

Gaining Efficiency in Finance

Optimizing Working Capital

Free-up Working Capital Decrease Day Sales Outstanding

Decrease Bad-debt write-offs

Driving Strategy and Growth

Supporting Excellence in

Corporate Operations

Manage Real-Estate Manage Global Travel Policies

Develop Talents & Leadership

Ensuring Compliance andMitigating Risks

Measure Profitability

Control Costs

Define Benchmarks and KPIs

Link Strategy with Execution

Handle Mergers & Acquisitions

Control Processes Efficiently

Manage Risks

Support Audits Decrease Cost of Finance

Accelerate Financial Close

Organize Finance Operations

Efficiently across the Enterprise

Today’s business challenges in Financials

What are the responsibilities of the CFO?



© SAP 2007 /

Financial Performance Management

Financial

AccountingManagement

Accounting

Financial

Supply Chain

Management

Corporate

Governance

Financial

Analytics

Treasury

Governance, Risk, and Compliance

Financial Performance Management

Financial


Accounting

Financial

Supply Chain

Management

Corporate

Governance

Financial

Analytics

Treasury

Financial


Accounting

Financial

Supply Chain

Management

Corporate

Governance

Financial

Analytics

Treasury

Governance, Risk, and Compliance

© SAP 2007 / Page 6

SAP Solutions for Financial Excellence

CFO Solutions by

SAP and

Business Objects

SAP ERP Financials

Key Capabilities


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© SAP 2007 / Page 7

Financial Supply Chain Management and

Treasury applications from SAP

Issueinvoice

Forecastcash

Financeworkingcapital

Resolvedisputes

Collectcash

Checkcredit-

worthiness

Settle& pay

Reconcile

Electronic billpresentmentand payment

SAP Disputemanagement

SAP Collectionsmanagement

SAP Creditmanagement

Cash andliquidity

management

SAP Treasuryand risk

management

SAPIn-house cash

SAPBank Communication

Management

http://images.google.de/imgres?imgurl=www.scheidung-internet.de/inkasso.jpg&imgrefurl=http://www.scheidung-internet.de/inkasso.html&h=212&w=240&sz=26&tbnid=fbWtCTy9mi8J:&tbnh=91&tbnw=103&prev=/images%3Fq%3Dinkasso%26hl%3Dde%26lr%3D%26ie%3DUTF-8%26oe%3DUTF-8%26sa%3DN



SAP ERP 6.0 – The Go-To Release

SAP NetWeaver

SAP ERP 6.0

Enhancement Packages

Quick Facts About SAP ERP 6.0 Launched in June 2006

Fastest adoption since SAP R/3 4.6C

Built on SAP NetWeaver 7.0

Platform upon which SAP will deliver futuresoftware innovations

Software innovation without disruption via SAPEnhancement Packages

Standard Maintenance until March 2013

Enterprise SOA

Industry-Specific

Enhancements

Process and User

Interface Simplification

Cross-Industry Enhancements

Customers Adopt Innovation at their Pace



Enhancement PackagesDelivering new capabilities along with critical updates

Legal/Tax Changes,

Corrections

Enhancement Packages

Support Packages

New/Improved Functionality

Switch Framework

Enterprise Services

Mandatory

Optional


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1. Trends & Challenges

2. Solution Proposal

2.1. SAP Bank Communication Management

2.2. SAP Integration Package for SWIFT2.3. SAP In-House Cash

3. Value Proposition

4. Customer Cases

5. Summary & Outlook

Agenda


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Yesterday: Multiple Standards &

Communication Standards

e-banking

Host to Host

e-banking

VAN

“fax-banking”

Internet

Leased line

PSTN

Accounts

Payable

Accounts

Receivable

Treasury

Other

Corporate client Banks



Challenges:

Compliance, Security & Efficiency Issues

High Maintenance Costs For Communication Interfaces

Corporates typically deploy several different bank communication interfaces

that each use various technologies and file formats

Over EUR 25,000 and more per year for each proprietary interface

Cumbersome Interfaces Hinder Compliance Efforts

Payment data is highly sensitive in nature and requires sophisticated securityprocesses to meet ever-increasing regulatory mandates

Process Inefficiencies

High levels of manual processing, productivity losses, excessive exception

handling and an overall lack of transparency into payment flowsMissing straight-through processing and separate handling of payment orders

or bank statements for each bank



Challenges:Increased Costs, Dependencies & Lack of Transparency

Cost of Working Capital

Errors in payment orders are identified too late

Certain level of liquidity must be kept on transaction accounts due to lack of

information

Security Issues

Security gaps during payment file transfer (authorization, signature andencryption often not part of the solution)

Dependency on House Banks

Proprietary interfaces create dependency on single bank due to cost of

changing bank relationship

Lack of Payment Transaction Transparency

Most proprietary interface applications cannot process incoming status

messages from banks


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4. Customer Cases


Agenda



SAP ERP – Solution Map

http://www.sap.com/businessmaps



Detail: Treasury



Optimize Finance With

Treasury Applications From SAP

Treasury applications from SAP

SAP Treasury and Risk Management

Risk Analyzer

Transaction Manager

SAP Bank Communication Management

SAP Cash & Liquidity Management

SAP In-House Cash

Cash Management Liquidity Planning

Credit Risk Market Risk Portfolio Analyzer

Hedge Mgt Exposure Mgt

MM FX SEC COMDER DEB

Manage Financial

Risks

Manage Financial

Instruments

Manage Cash



SAP Bank Communication ManagementNew in EH2

PaymentRun

Status Monitor

SAP ERP

GL

Payroll

Treasury

In house

cash

SAP

Integration

Package for

SWIFT

© SAP 2008 / Page 19

AggregatePayments

ApprovalWorklist

ExceptionHandling

StatusWorkflow

TransmitPayment

Workflow





enables corporate customers connecting

via SAP NetWeaver Process Integration to

the SWIFT Net Interface

SAP Bank Communication Management is

part of SAP ERP Core and is available since

SAP ERP 6.0, Enhancement Package 2


includes SAP Integration Package for

SWIFT

Functionalities of SAP Bank Communication Management

Logical structuring of payments into batches

Multiple approval levels for outgoing payments

Audit trail for payment approval decisions along with digital signatures for internal

audit

Analysis of payment status information and full payment-flow transparency

SWIFTNet interface integration using SAP Integration Package for SWIFT



Bank Communication with SAP ERP –

PRESENT

SAP ERP

System

3rd Party

System

Execute

Payment

Program

CreatePayment

Order

ImportBank

Statement

Post/Processing

and

Clearing

Upload File

Security:

Authorization

EncryptionDigital Signature

Send Payment

Order to Bank

Collect BankStatement

Security

File

Server

Download

File

B ank



Bank Communication Process Flow

Execute

Payment

Program

CreatePayment

Order

Import

Bank

Statement

Post/Processing

and

Clearing

SAP Integration

Package for

SWIFTSWIFTAlliance

Access /

Gateway

SAP NetWeaver

Process Integration

SAP Bank

Communication

Management

SAP ERP

Create Batch

Payment Approval

Work List

Security

- Approval workflow

- Authorization

- Digital signature

Receive Status

Messages

Bank Statement

Routing

Mapping

Security

Encryption

Digital Signature

Resource

Adapter

SWIFTNet



Features: Batching & Exception Handling

Batching of payments

Logical structuring of payment files

Flexible batching rules that can be enhanced

Automatic creation of unique identifiers

Exception handling

Visibility of errors in payment status monitor

Automatic generation of alert workflow items

© SAP 2007 / Page 23



Features: Compliance

Increased compliance

Multi-eye release procedures for payment approvals

Personal digital signatures for outgoing payments for internal audit

Release of individual payments or entire batches

Flexible approval rules (low-value payments = only one approver, for example)

Approval, rejection, or resubmission of payments

Flexible sorting and structuring of approval work list

© SAP 2007 / Page 24



Features: Integration to SWIFT and Banks &

Transparency

Integration to SWIFT and banks

Real-time integration with SWIFT via SAP Integration Package for SWIFT

Optional integration with banks with the adapters in SAP NetWeaver ProcessIntegration on a project basis

Increased payment-flow transparency

Payment status monitor with full status history

Flexible status concept

Processing of new ISO20022 payment status report and other status

messages (ACK/NACK)

Drill-down to documents and master data

Display of generated payment formats

© SAP 2007 / Page 25



© SAP 2007 /

Detail: Batch and Payment Monitor

The Batch and Payment Monitor provides an overview of the batch life cycle:

creation – approval – sending – confirmation – completion (bank statement). The monitor has two levels:

Initially, it shows only batches (‘headers’)

On drill-down, it shows all the payments (‘items’) that belong to the chosen batch

Drill-down



© SAP 2007 /

Detail: Approvals

Once the Payments are batched, it can be decided if a Batch has to go for Approval

or not This is done in the customizing setting ‘Mark Rules for Automatic Payments (No Approval)’

Payments with no approval are called ‘Automatic Payments’

Batch 1

Batch 2

Approval

Process

BANK



© SAP 2007 /

Detail: Digital Signatures

Digital Signatures are used in the Approval Process of the Batches

The object that is signed is the ‘action document’ (Log from the ‘Approve Payments’Transaction) and not the ‘batch file’

Digital Signatures are based on customizing for the existing Signature Tool



© SAP 2007 /

Detail: Log Tab

The actions performed so far within a session are also summarized in the ‘Change

log’ Tab This tab is just for information purposes and does not allow an undo

The Change Log stores only the state that is to be saved. If the user decides for example to undo his approval for a Batch, the corresponding entry will simplydisappear from the log



© SAP 2007 / © SAP 2007 / Page 30






4. Customer Cases


Agenda



© SAP 2007 /

What is S.W.I.F.T?

S.W.I.F.T. stands for Society for Worldwide Interbank Financial Telecommunications

A co-operative organization serving the financial industry

A provider of highly secure financial messaging services

The financial standardization body

2.5 billion messages/year

8,400 customers

208 countries

Latest peak day:

16.5 m messages

© SAP 2008 / Page 31

Country coverage



© SAP 2007 /

Summary SWIFTNet FIN and SWIFTNet File

Act

SWIFTNet FIN is suitable for single messages (such as a single credit transfer or

end-of-day bank statement based on traditional SWIFT MT standards) and is basedon the store-and-forward telecommunications technique

SWIFTNet FileAct can transfer bulk messages (such as domestic payment formats

or the new XML-based universal financial industry [UNIFI] messages) and supports

both real-time and store-and-forward communication

S C



© SAP 2007 /


Business Strategy & Initiatives

Bank Communication Before Bank Communication After

Simplification Reduce the number of

proprietary payment standards

and bank-specific e-banking

products and setting up a

single communication channel

to SWIFTNet

Cost Reduction Reduce maintenance cost by

communicating with all the

banking partners through this

one channel

Compliance Enhance straight-through-

processing (STP) rates and

ensure traceability of the whole

business process

F t SWIFT I t ti XML d ISO



© SAP 2007 /

Features: SWIFT Integration, XML and ISO

20022

SWIFTNet integration

Inbound and outbound support of FileAct and FIN Integration with SWIFT architecture (SWIFTAlliance access and gateway)

Management of local authentication and integrity between SAP

NetWeaver Process Integration and SWIFTAlliance access and gateway

Standard mappings in SAP NetWeaver Process Integration for

ISO20022 messages

Customer credit transfer initiation

Customer direct debit transfer initiation

Payment status report

Tight integration with SAP software Available for SAP R/3 4.6C and above

Support of various status messages in conjunction with SAP BankCommunication Management (prerequisite: SAP ERP 6.0)

© SAP 2008 / Page 34

D t il A hit t l O i



© SAP 2007 /

FIN

File Act

Keyed-hash

message

authentication

code

Detail: Architectural Overview

SWIFT

Alliance

Access

Messaging

Layer SAP NetWeaver Process

Integration

Message

File

Exchange(FTP,

shared

folders)

AFT

Adapter

SAP File Adapter

HMAC-SHA256

Native SAP

FILE ADAPTER

with extended

modules

SWIFT Alliance Access

native Automated File

Transfer Adapter

SWIFT

Alliance

Gateway

Communication

Layer

MT

MX

A d



© SAP 2007 / © SAP 2007 / Page 36






4. Customer Cases


Agenda



© SAP 2007 /

Business purpose

SAP In-House Cash provides payment-related services

for a group of affiliated companies

Features

Central dispatching, routing, and processing of payments

Creation of account statements to account holders

Tracking of payment statuses

Support of various corporate group structures

Routing of payment orders to local subsidiaries to replace

cross-border payments

Internal bank accounts in any currency

Flexible condition and limit concept

Full integration with SAP Cash Management and SAP Treasury and Risk

Management

SAP In-House Cash: Overview

E h t St li d B k C i ti ith



© SAP 2007 /

Enhancement: Streamlined Bank Communication with

Central In-House Bank and Payment Factory - UPDATE

SAP

Integration Package

for SWIFT

Corporate Client

SAP NetWeaver

Process Integration

Payments

Compliance

SWIFTNet

S A P B a n k

C o m m u n i c a t i o n

M a n a g e m e n t

S A P

I n - H o u s e C a s h

SWIFTNet

Interface

Bank

Subsidiary

Subsidiary

Subsidiary

Headquarter



© SAP 2007 /

SAP In-House Cash - Business Benefits

Reduce amount of physical cash transfers by internal netting

Reduce number of bank accounts

Reduce administrative overhead

Minimize netting process times

Save bank fees for bank accounts and payment transactions

Avoid cost for external cross-border payments

Reduce float and value-date losses

Gain more interest by keeping cash within the group

Reduce hedging deals concentrating exposure within thegroup

Improve competitive position in external money markets

Lower internal

cost

Lower external

cost

Agenda



© SAP 2007 / © SAP 2008 / Page 41

Value Proposition

Improved communication between corporates and banks

SAP Bank Communication Management helps increase efficiency, lower costs, andstreamline processes

Single communication channel to SWIFTNet

Standardized and uniform Payment Gateway

More cash flow transparency and visibility of working capital

Enhanced straight-through-processing (STP) rates

Companies get accurate and real-time view of their payment transactions

Enhanced security and compliance

Transparent management of outgoing payments with no breaches on internal controls

Reduced maintenance costs by using global payment standards

Independency from proprietary payment standards and bank-specific e-bankingproducts

Readiness for SEPA and UNIFI/ISO20022 standard

Agenda



Outlook



© SAP 2007 /

Outlook

Enhancement Package 4 for SAP ERP 6.0

Improved Service Enabling

New Interfaces for credit

and debit advice

Enhanced ISO20022 /

SEPA support

ENTERPRISE SOA

Capability to assignadditional approval users

for dual control

Enhanced encryption

capabilities

Security

Indicate urgent payments in

the payment monitor

Automated triggering of

follow up activities

Simplification

Enhanced reporting

capabilities

Functional



Education



© SAP 2007 /

Education

SAP Education Course FSC130 (Bank Communication Management)

www.sap.com/education --> Course Search --> FSC130

Duration: 2 Days

Collaterals

http://www.sap.com/education

http://www.sap.com/education



© SAP 2007 /

Collaterals(External)

Solution Brief

SAP Bank Communication Management (SMART) http://download.sap.com/download.epd?context=2B20A09F57C72CF46DB52BD86A44F8

2CE3031867AF267A3ED5DFEBE520580AD923F1C52B21E71C75D600B5A557797F3F91AD7003B5A4EE22

SAP Integration Package for SWIFT

http://download.sap.com/download.epd?context=90E21D4A3F4A8669E3BBDDB74A3856

F713F0497771AA7184D327EFAF841FA2ADACA54121F360749730DFA7A2EEE883B39EBC7A6C0608C41C

SEPA – Single Euro Payments Area

http://download.sap.com/download.epd?context=E63041D39B7A66F0367E55F8DFA21160E250BF3E23FE46EFCA311BF087F2A72EE57D9BB9917D1D0FB6F3CDA3DDC097DFB461788605E9B41F

Success Story Würth Customer Success Story

http://download.sap.com/SMIGlobal/download.epd?context=39183CCA4365505B96206BDC55C5EF6C0A21C3629EE38F45277EEE70D86187EDD154BEEE4790379B51ABC44481B48362C96D14728E664CEB

Quick Facts Bank Communication

http://download.sap.com/download.epd?context=2B20A09F57C72CF46DB52BD86A44F82CE3031867AF267A3ED5DFEBE520580AD923F1C52B21E71C75D600B5A557797F3F91AD7003B5A4EE22



http://download.sap.com/download.epd?context=90E21D4A3F4A8669E3BBDDB74A3856F713F0497771AA7184D327EFAF841FA2ADACA54121F360749730DFA7A2EEE883B39EBC7A6C0608C41C























© SAP 2007 / © SAP 2008 / Page 50

Quick Facts Bank Communication

Management

SAP Bank Communication Management is part

of Treasury Applications from SAP

SAP enables standardization and automation

of Corporate to Bank communication

Optimization of payment processes and

increased payment flow transparency throughflexible batching rules, approval workflows, as

well as release and status monitoring

Enhanced straight-through-processing (STP)

rates with end-to-end SWIFTNet integration

using SAP Integration Package for SWIFT

Reduced maintenance costs by using global

payment standards and replacing proprietary

bank-specific e-banking products

Readiness for SEPA and ISO20022

Further Information



© SAP 2007 /

Public Web

www.sap.com/treasury

Documentation and Release Notes

http://help.sap.com Documentation / SAP ERP / SAP enhancement package 2 for SAP ERP 6.0 /

SAP ERP Central Component / Financials / SAP Financial Supply Chain Management (FIN-FSCM)

/ Bank Communication Management

ASUG/DSAG: Treasury Special Interest Groups

www.asug.com, www.dsag.com

SAP Service Marketplace (log-on required)

https://service.sap.com/erp-treasury

SAP Community Network (log-on required)

http://sdn.sap.com Enterprise Services WIKI BCM

Contact

Your SAP Account and Consulting Engagement Manager

Further Information

© SAP 2008 / Page 51© SAP 2008 / Page 51

http://help.sap.com/

http://www.asug.com/


http://sdn.sap.com/

http://sdn.sap.com/




http://www.asug.com/

http://help.sap.com/



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