IS 604: Contemporary Issues in IS Banking Enterprise Systems

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

Agenda – Session III

Agenda

1

B

_{tec Company Overview}

2

Introduction to SAP Banking Services

3

SAP Business Partner

4

Contract Management

5

Product Configuration

6

Financial Conditions & Pricing

…

…

9

Posting Control Management

3

Posting Control Processing

C orr esp on de nce P erio di c P roce ssi ng 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

Posting Control Processing

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

Posting Control Processing



Understand posting control functions



Explain formal and material check processing



Explain posting control rule processing



Define functional scope of posting control office and

processing of posting control orders

Agenda: Posting Control Processing

Agenda

1

Posting Control Overview

2

Posting Control Rules

Posting Control Overview

Posting Control Management is a component that supports rational processing of mass payment transactions in the Account Management (AM) system in SAP BaS.

During posting or creation, every payment item and prenote in the AM system is subjected to a number of formal and material checks. If Posting Lock Management is active, it can as well cause posting errors by locking features (ex: debit postings are locked) and objects (ex: account is locked) with posting lock documents.

Identified posting errors are subject to posting control rules, where user can configure desired first responses to various posting problems.

If Posting Control Office (PCO) is active then the system automatically sends posting-related details to PCO and generates Posting Control Order. In PCO posting control orders can be processed automatically or manually in Posting Control Desktop.

Posting Control Office

Posting Control Order

Automatic Processing Posting Control Desktop P os ti ng Lo c k Ma na ge m en t Account Management Posting Checks Posting Control Rules

Payment Form Locks, Card Locks,

Account Locks _Bus ine s s T ran s ac ti on s Payment Transactions

Agenda: Posting Control Processing

Agenda

1

Posting Control Overview

2

Posting Control Rules

Posting Control Rules: Posting Checks

Depending on the error type identified by formal check, formal error to which posting control can be applied and to which it cannot be applied, system has the following reaction possibilities:

Formal Checks: Material Checks:

 Value (mandatory attribute not entered)

 Value range (entered value is not within value range)  Format (entered value does not match to the

allowed format)

 Account Posting Check  Limit (available amount)  Access Limit

 Account Name Check  Prenote

Formal Checks Material Checks

Formal error to which posting control cannot be applied

Formal error to which posting control can be applied

Formal object check Default response: Reject According to Posting Control Rules Cancel No rule Account Posting Check Available amount check … Default response: Routing Items: Reject

Other Items: Post-processing

According to Posting Control Rules

No rule

If formal checks did not identify any errors, payment item is checked further for material errors. Depending on the material error system performs following actions:

Posting Control Rules: Rule Processing

Incoming Payment Item

Through Dialog/BAPI/Services/… Formal Checks Material Checks Post Reallocate Reject Post-processing Redirect Return Cancel Post Respond according to Posting Control Rules

Formal error to which posting control rule cannot be applied

No Material error Material error Formal error to which posting control rule can be applied

Posting Control Rules: Rule Processing

 The posting control rules in banking services from SAP enable automatic processing of payment transactions if there are posting problems. In many scenarios, incorrect postings can be processed automatically without requiring any manual processing.

 The posting control rules are applied according to specific input parameters. Input parameters include:

 error types

 payment item type

 transaction type group

 product

 posting control group (this defines your customer groups)

 channel

Based on these parameters, the corresponding response is automatically determined by the system.

 The response is determined based on the input parameters. This means the system uses the input parameters of the payment item to determine the

response that best suits these input parameters. If the system does not find a matching entry, it looks for the one with the most matching criteria.

Input parameters

Posting Control Rules

Posting Control Rules: Rule Processing

During processing of a payment item several checks may fail. This may result in an item with several error types being submitted to the posting control rules. Different responses can then be determined in the set of rules.

 Fully qualified access takes priority over partially qualified access. The appropriate rule is determined according to a sequence defined by a customer. The default determination sequence is as follows:

 Channel

 Posting control group

 Product

 Transaction type group

 Item type

 Error type

 If more than one rule appropriate, the valid rule is determined according to the priority of responses received, where reject takes highest priority whereas post has a lowest priority:

Agenda: Posting Control Processing

Agenda

1

Posting Control Overview

2

Posting Control Rules

Posting Control Office

Posting Control Office (PCO) - supports efficient processing of mass payment transactions in the account managing system. It enables both automatic and manual processing of posting control orders.

 Aim:

 Reduction of the manual post-processing

 Cost saving due to reduction in post-processing

 Functional Scope:

 Enables efficient processing of mass payment transactions

 Takes over manual and automatic processing if posting problems are identified when you try to post a payment item as for example:

• Insufficient funds

• Value date variances and others

 Takes into account prenotes, which can also lead to insufficient funds

Manual Processing Automatic Processing

 Preparation of all information relevant for making posting control decision

 Post/ return/ reject/ transfer post turnover

 Transfer to automatic processing function

 Temporally postpone processing

 Close posting control order

 Resubmission

 Check limits

 Item in post-processing: Renewed posting  Item in reallocation: Renewed check of

posted item

 Execute final processing

 Renewed resubmission

Posting Control Office

 All exceptions that cannot be resolved automatically by the posting control rules are sent to post-processing. This means that a posting control order is created and the person

responsible has to process the payment item manually.

 Posting control orders are assigned to different worklists according to specific parameters.

User

Assignment to Worklist

Posting Control Office

 Order Category

The category of posting control order defines whether the posting control decision affects a single payment item or the whole account . There are two order categories:

 Item Order  Account Order 1. Payment Item Processing 2. Posting Control Order 3. Worklist Assignment 4. PCO Processing 5. Possible Actions Payment Item Posting Control Order Worklist 1 User Automatic Processing Res ponse s Resubmit Reject/ Return Item Post Item Transfer Post Item Reverse Item Complete Check finds errors

Posting Control Processing

 Posting Control Management is a component that supports rational

processing of mass payment transactions in the Account

Management (AM) system in SAP BaS.

 Every payment item and prenote in the AM system is subjected to a number of formal and material checks. The formal checks are

accomplished before the material checks. In case if checks identified errors posting control is used.

 The posting control rules in banking services from SAP enable automatic processing of payment transactions if there are posting problems. In many scenarios, incorrect postings can be processed automatically without requiring any manual processing.

 The posting control rules are applied according to specific input parameters.

 Posting Control Office supports efficient processing of mass payment transactions by enabling both automatic and manual processing of posting control orders. Manual processing is done with the help of worklists, to which posting control orders are sent if they cannot be handled automatically according to posting control rules.