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
5
Product Configuration
6
Financial Conditions & Pricing
7
Order Management
8
Item Management & Payment Services
9
…
2
IS 604 Banking Enterprise Systems
Periodic
Processing
Correspondence
Item Management and Payment Services
Double,
Triple,
Quadruple
Control
Product Configuration
Financial Conditions/Pricing
Contract Management
Order Management/
Business Operation
Posting Lock
Management
Posting Control Processing/
Exception Handling
Open Item Management
3
Accounting
Currency
Conversion
Settlement
Cash Flow
Billing and Invoicing
Item Management/
Payment Services
Payment Distribution
Master Contract Management
Combined Settlement
Financial
Customer
Information
Management
Reporting
Pooling
Collateral
Archiving
Payment Distribution & Monitoring
Credit Facilities
IS 604 Banking Enterprise Systems
Insurance
Item Management and Payment Services
4
Front-Office
Current account life-cycle
Contact
Mid-Office
Create BP
Create
Account
Assign
Product
Advisory
Offer
Deal
Mainte
nance
Back-Office
Account
Closure
Maintain
BP
Maintain
Account
Payments
Settle
Account
Business
Processes
Create
Product
Create
Conditions
Define Ind.
Conditions
Create Product
Pricing List
Order
Management
Posting
Control
Account
Settlement
Manage
Payments
Business
Events
Business
Transactions
IS 604 Banking Enterprise Systems
Book on internal
accounts
Maintain
Product
Maintain
Conditions
Maintain Product
Pricing List
Reporting
Item Management and Payment Services
GOALS OF THIS UNIT
 Understand the functions of payment items and
payment transaction orders
 Explain the usage of information items and nonbalance changing turnovers
 Define types of account balance basis and
relevance of dates
 Overview of integration of deposit management in
banking services from SAP with payment engine
IS 604 Banking Enterprise Systems
5
Agenda: Item Management and Payment Services
Agenda
1
Payment Item
2
Further Item Types
3
Balance and Key Figures
4
Payment Transaction Orders
5
Integration with Payment Transfer Systems
IS 604 Banking Enterprise Systems
6
Payment Item
7
Payment Item
is a one-sided turnover on an account and represents debit or credit posting. It can consist of one or more
payment item positions on the same item identification.
Ordering Party Item

Recipient Item
Routing Item
Turnover Item
Ordering Party Item – item that is posted on the account of the ordering party. An ordering party item can
always be both a credit and a debit. They can be initiated both internally and externally.
Example: customer has withdrawn money from his account through ATM machine  result is an ordering party payment
item with debit posting to the account

Recipient Item – item that is posted on the account of the recipient. Here, both a credit and a debit can be
involved that can be internally or externally initiated, too.
Example: customer transferred money from his current account to his savings account  this transfer results in two
payment items: one ordering party item with debit posting to the current account and one recipient item with credit posting
to the savings account.

Routing Item – are postings of the payment system to routing accounts
Example: recipient account specified in the bank transfer does not exist  transfer results in the generation of the routing
item with posting to suspense account until further processing

Turnover Item – are postings with no ordering party or recipient characteristic.
Example: time deposit account settlement  results in generation of turnover item with credit posting of incurred credit
interests to time deposit account
IS 604 Banking Enterprise Systems
Payment Item: Attributes
8
Mandatory Attributes
Transaction Type
Account Identification
Posting Date
Value Date
•
•
•
Bank Country/ Bank Key/ Account Number/ IBAN/ Currency/ ..
•
•
specifies the date, on which a payment item is posted
it can be determined from BS as a default value or
individually
•
•
•
specifies the date for which a payment item is relevant for
interest calculation
determined on the basis of value date condition and
depends on customizing settings
Amount in Transaction Currency
Amount in Account Currency
•
•
medium – from customer to ordering item bank
payment method – from ordering bank to recipient bank
•
Amounts
Medium
characterizes payment transactions
assigned to each posting generated by the system
can be configured
IS 604 Banking Enterprise Systems
Payment Item: Attributes
9
Optional Attributes
Payment Method
Payment Form Numbers
specifies the way that recipient items are transferred by payment
transactions
specify a one to 20-digit number for a payment form; it checks an
existing payment form or whether it has already been cashed
Sending Applications
specify the application used for transferring the payment item to
banking services from SAP, - synonym for channel
Payment Notes
contain information for the ordering party and/or recipient of the
payment
Date Subject to Final
Payment
specifies the date from which the bank customer can access the
amount from postings of subject to final payment receipts
Mandate ID
Further References
Origin
is a unique reference to mandates for each vendor (payment
recipient)
related to Technical References and Business References
specifies a freely definable characteristic that can be used for
customer-specific enhancements
IS 604 Banking Enterprise Systems
Payment Item: Methods and Status
1. Create
Payment Item
2. Check
Formal check and Material check
10
3. Reaction
1.
Payment item can reach SAP BaS from external systems or can be created directly in BaS through dialog.
2.
After entering into the system every payment item is first subject to checks: formal checks (ex: check of posting dates,
account existence) and material checks (ex: check of limits, locks). Relevant checks that must be performed during the
posting process should be activated in the system.
3.
If formal and material checks found error system responds according to the set of rules, one of which is sending this item to
post-processing. From post-processing following actions are possible:
In Post-Processing
Post
Return
Reject
Posted
Returned
Deleted
Reverse
Adjust
Redirect
Transfer Post
Status
Method
Reversed
IS 604 Banking Enterprise Systems
Agenda: Item Management and Payment Services
Agenda
1
Payment Item
2
Further Item Types
3
Balance and Key Figures
4
Payment Transaction Orders
5
Integration with Payment Transfer Systems
IS 604 Banking Enterprise Systems
11
Further Item Types
12
Information Item
Item for Debit Position
Item Relevant for Settlement





Is an item saved for information purposes only (for example, interest penalty or debit position items)
Does not result from payment transactions
Is not transferred to the general ledger
Does not affect the account balance or available amount
Can be either relevant for settlement or debit position
Non-Balance Changing Turnovers
Accrual / Deferral




Legacy Data Transfer
Accrual/ deferral of interest and charges, Legacy data transfer, Individual value adjustments
Determine which interest and charges have been accrued between the last settlement and the defined
key date
The revenues and expenses are posted as non-balance-changing turnover and transferred to the general
ledger
A legacy data transfer is used to transfer payment items and account balances from a legacy system to
banking services from SAP up to the going-live date
IS 604 Banking Enterprise Systems
Agenda: Item Management and Payment Services
Agenda
1
Payment Item
2
Further Item Types
3
Balance and Key Figures
4
Payment Transaction Orders
5
Integration with Payment Transfer Systems
IS 604 Banking Enterprise Systems
13
Balance and Key Figures: Account Balances
Account Balance
- is the amount that results from the difference between the debit side and credit side of an account.
In banking services from SAP, balances can either be based on the value date of the account flows, or the
posting date. These are called value date-based or posting date-based balances respectively.



Period balance is used for the period specified in the calculation; starting with the starting balance ‘zero’
Aggregated balance is used for the period specified in the calculation and includes the aggregated
balance of the previous period
Turnover is used to calculate the balance for the specified period, not including the balances
Account Balance
Posting DateBased Balance
Value DateBased Balance
Balance Basis:
Turnover
Aggregated Balance
IS 604 Banking Enterprise Systems
Period Balance
14
Balance and Key Figures: Counters
Counter
 Is a business object in banking services from SAP that is used to record
the number of posting items for each account
 Counter can measure in whole numbers only
 The reading increased by one for each relevant posted item
 Reversed posting items decrease the counter readings
 Counters can be used in the definition of settlement conditions
IS 604 Banking Enterprise Systems
15
Balance and Key Figures: Turnover Classes
16
Turnover Classes:





Group turnovers according to different criteria, for example: salary deposits, transaction charges, loan
repayment, etc.
The specific value resulting from each turnover group is called ‘flexible balance’
The turnovers for an account are generated when you post payment items
The criteria that determine which turnovers in an account are selected and grouped is defined in a flexible
balance for each turnover group
Turnover classes are assigned to an account either at:
 product level – assigning relevant turnovers to the product in customizing
 condition level – assigning relevant turnovers to the condition type in the customizing
 or in the application
Turnover Classes: Access Limits
Access limit is a value-related restriction of turnovers of a certain turnover class or counters for an account
within a defined period. It can be defined depending on turnover class or counter:

Counter-based, for example: the account has an access limit of maximum 15 ATM debit turnovers per
day, which means customer can execute maximum 15 ATM withdrawals per day

Turnover-based, for example: the account has an access limit of EUR 10.000 per day, which means
customer’s transaction cannot exceed 10,000 within one day. This can be used to check for money
laundering
IS 604 Banking Enterprise Systems
Agenda: Item Management and Payment Services
Agenda
1
Payment Item
2
Further Item Types
3
Balance and Key Figures
4
Payment Transaction Orders
5
Integration with Payment Transfer Systems
IS 604 Banking Enterprise Systems
17
Payment Transaction Orders
18
Payment Transaction Orders
Payment Order
Forward Order
Standing Order
Payment Order:


Is a business object that depicts a payment order to execute a bank transfer,
collection authorization or check deposits
Consist of two or more payment items: ordering party item and recipient item(s).
Payment Order
Transfer from account 4110 to account 4120 of EUR 300,00
Payment Item 1
Ordering party
Acc.:4110
-300,00
Payment Item 2
Recipient
Acc.:4120
IS 604 Banking Enterprise Systems
+300,00
Payment Transaction Orders
19
Standing Order:


Is a payment order that is generated periodically to debit (standing debit memo) or credit (standing bank
transfer) one or more recipient accounts
With fixed or variable amounts
Standing Order with Variable Amount:


A special type of standing order in which amounts are transferred to one or more recipient accounts on a
specific execution date, depending on the account balance on that date
Distinction of variable standing order:



Complete execution
Partial (percentage) execution in case of multiple recipients
Amount restrictions:
 Base amount
The minimum amount (in the transaction currency) that is to remain on the account after the standing order is executed

Minimum amount
A recipient-specific minimum amount for the standing order. If an amount is lower than the minimum transfer amount, it
is not posted

Maximum amount
A recipient-specific maximum amount for the standing order

Execution in end-of-day mass run
IS 604 Banking Enterprise Systems
Payment Transaction Orders
20
Forward Order:





Is a payment order that is not executed immediately, but in the future on a certain
execution date.
When executed the forward order becomes a payment order
The forward order does not create any reserve items or future items during the
creation process
Account closure is not possible if a forward order exists
In Customizing, the maximum number of days for creating a forward order before
the execution date ca be defined.
IS 604 Banking Enterprise Systems
Agenda: Item Management and Payment Services
Agenda
1
Payment Item
2
Further Item Types
3
Balance and Key Figures
4
Payment Transaction Orders
5
Integration with Payment Transfer Systems
IS 604 Banking Enterprise Systems
21
Integration with Payment Transfer Systems
Payment Engine (FS-PE) is a single-payment operations platform that can connect to multiple internal and external payment
channels. This component can be used to verify, sort, and clear payment transactions. The graph below shows the integration
scenario of Payment Engine with Banking Services.
IS 604 Banking Enterprise Systems
22
Item Management and Payment Services


The central point in BaS payment services are payment items and payment
orders. Payment item is a one-sided turnover on an account resulting in the
debit or credit posting.
Payment items have mandatory and optional attributes.



Mandatory attributes include: transaction type that characterizes payment
transaction and assigned to each generated posting, account identification of
ordering party and recipient, posting and value dates, transaction amount and
currency, and medium for a transaction.
Payment item posting triggers formal and material checks, failure of which
causes further processing according to the set of rules.
Further item types consist of information items and non-balance changing
turnovers.



23
Information items are items saved for information purposes, however they can be
cleared during the settlement and offset by credit postings.
Non-balance changing turnovers do not change balance of the account, but
determine accrued revenues and deferred expenses.
Payment transaction order consists of two or more payment items, where one
– is ordering party payment item and the rest – recipient payment items.
Payment transaction orders classified into payment orders, standing orders,
and forward orders.


Standing orders are orders that executed constantly on the periodic basis.
Forward orders are orders with posting and value dates in the future.
IS 604 Banking Enterprise Systems