SAP Best Practices for Insurance
Baseline
SAP Best Practices for Insurance
Back- Middle- and Front Office Functions
Sales Marketing
Service
Incentives
Commissions
Analyze
Report
Risk & Compliance
Accounting
Financials
Assets
Cash
Governance
Fraud Control
Advanced Tools
Metrics & KPIs
Premiums
Claims
Underwriting
Product
Policy
User interface
SAP Best Practices for Insurance
Back- Middle- and Front Office Packages
10
11
91
92
31
32
21
22
23
41
51
61
52
53
71
93
HANA Live
81
82
Fiori
Predictive Analysis
10 – Baseline (this package)
11 – Business Partner
21 – Incentive and Commissions Management
22 – Financial Assets Management
23 – Reinsurance
31 – Premiums Receivable
32 – Claims Payable
41 – Product and Quotation Management
51 – Product and Policy Management (SAP)
52 – Product and Policy Management (MSG)
61 – Claims Management
71 – Fraud Management
81 – CRM OnDemand Campaign
82 – CRM OnDemand Lead Generation
91 – BPC Allocations and Reporting
92 – BPC Planning and Reporting
93 – Insurance Analyzer
98 – Analytics and KPIs
SAP Best Practices for Insurance – Baseline
Accounting Enablement for Insurance Operations
Business Drivers and Effect on Operations
Business Drivers
Accounting support for multiple financial reporting standards, industries,
currencies, and languages
Improve compliance and risk management
Reduce operating expenses of finance department
Reduce time to close books
Reduce audit cost
Effect on Operations
Seamless integration of front- and back-office processes and systems
The organization facilitates settlement by enabling real-time access to accounting and
payments systems
Finance organizations can centralize billing and collections
Payment handling is more accurate and credit control is optimized.
Finance organizations can further leverage the solution
Lower transactional costs
SAP Best Practices for Insurance – Baseline
Central Role in Core Insurance Operations
Scenario ID Scenario Description
1021 G/L Posting
1022 G/L Posting w/ Spreadsheet 1023 Period-End Closing (Central) 1024 Year-End Closing (Central) 1026 Asset Acquisition Direct
Capitalization
Architected for Cloud and On-Premise Use
Hosting Partner Customer 1 Customer 2 Customer…Cloud
#1 #2 #... Administrative Jump Hosts Shared Administrative Infrastructure Network ManagementGlobal Design – Local Deployment
Office of CEO – I010
US P&C (1000) Sales Marketing Underwriting Claims Billing Life (2000) Sales Marketing Underwriting Claims Billing Health (3000) Sales Marketing Underwriting Claims Billing Local US (Shared Services - 1000) Corporate Accounting IT HR Legal Investments Actuary Singapore P&C (1600) Sales Marketing Underwriting Claims Billing Life (2600) Sales Marketing Underwriting Claims Billing Locals (Singapore) Accounting IT HR Legal Investments Actuary Netherlands P&C (1400) Sales Marketing Underwriting Claims Billing Life (2400) Sales Marketing Underwriting Claims Billing Locals (Netherlands) Accounting IT HR Legal Investments Actuary CEO – direct reports Shared Services
Functional Scope
In Scope
•
General Ledger
•
Accounts Payable Sub-Ledger
•
Accounts Receivable Sub-Ledger
•
Bank Accounting
•
Fixed Asset Management
•
Cost Center Accounting
•
Internal Order Accounting
•
Profit Center Accounting
Out of Scope
•
ECC Materials Management and
Purchasing
•
ECC Human Capital Management
Baseline Business Process Scope
Functional Processes
Master Data Processes
Process ID Description
1021 G/L Posting
1022 G/L Posting w/ Spreadsheet 1023 Period-End Closing (Central) 1024 Year-End Closing (Central)
1026 Asset Acquisition Direct Capitalization 1027 Asset Acquisition w/ AuC
1028 Asset Retirement with/without Revenue 1032 Manual A/P Invoice
1033 A/P Outgoing Payment 1034 Customer Statement 1035 A/R Incoming Payment 1036 Manual A/R Invoice
1037 Costs Allocation (Distribution)
Process ID Description
1001 Maintain Asset Master
1002 Maintain Internal Order (Capital Expense) 1003 Maintain Coding Block Entries
1004 Maintain Cost Center and Cost Center Group 1005 Maintain Cost Element and Cost Element Group 1006 Maintain Customer Master
1007 Maintain G/L Account and Account Group 1008 Maintain Internal Order (Ordinary Expense) 1011 Maintain Profit Center and Profit Center Group 1012 Vendor Master
Software Scope
Baseline
•
HANA 1.0 SP7 Rev. 74
•
Solution Manager 7.1 on HANA
•
ERP 6.07 SP4 with Insurance
and SAP SFINANCIALS (sFIN)
•
SAP HANA Live for Business
Suite 1.0 SP6
Optional
•
BPC 10.1 SP2 on HANA
•
BW Content 7.57
•
SAP Fiori
•
BOBJ Enterprise 4.1 SP3
Business Optimization Guidance: Configuration
Requirement Solution Business Optimization Guidance
Flexible Enterprise Structuring Organizational Structure Company Codes, Segments, Profit Centers, Functional Areas, Cost Centers
International Compliance Multiple Accounting Principles [AP]
Ledgers-Based Design (Primary AP (US GAAP or IFRS), Local GAAP, Local STAT, Group AP)
Multi-Currency Support Currencies Group-, Local- and Transactional currencies
Industry Specific Dimensions
Accident /Claim Year (4-digits), Risk Location (country -3 digits), Risk Location State (3- digits), Line of Business (6 digits)
Business Optimization Guidance: Master Data
Range Numbers in Range Notes
01 9110000000-9119999999 GL Documents incl. Assets Postings 03 9130000000-9139999999 Depreciation Postings
14 9340000000-9349999999 Customer Payments 15 9450000000-9459999999 Vendor Payments
16 9360000000-9369999999 Customer Documents – incl. Credit Memos 17 9470000000-9479999999 Vendor Documents – incl. Credit Memos 18 9380000000-9389999999 Customer Invoice
19 9490000000-9499999999 Vendor Invoice
90 9190000000-9190999999 Ledger Z2 for Fixed asset re-class depreciation 91 9191000000-9191999999 Ledger Z2 for Fixed asset re-class
Business Optimization Guidance: Processes
•
Diagram shows roles,
events, process steps, and
correspondence and forms
•
Process steps are
interactive and linked with
SAP transactions
Baseline Porting Strategy
Cloud / On-Premise
Install
DEV
ERP
Customer’s Cloud / On-Premise Systems
000 Default Client 100 Initial Configuration 300 Customer Config and Data
1
2
3
000 Default Client 100 Customizing 200 Sandbox 300 Data Conversion5
6
7
000 Default Client 100 Customizing 200 QA Testing *) 300 Data ConversionERP
QA
9
IMPORTANT! “Delta” includes: Transports Manual customizing as required, such as framework, EDI,
correspondence and documentation, master data, etc. If activating additional SWF5 – make sure client-dependent customizing from business functions, if any, is imported as well
Delta
1
Install Baseline in Client 300. Copy to Client 100using CUSTOMIZING_ONLY profile
5
Project Team acquires On-Premise/HEC DEV
system as per Project requirements
9
Optional: Project Team installs Development system using the tested Sandbox (System Copy)
2
Project Team are given access to Client 100 forreference only
6
Project Team installs the initial configuration as
per Build Procedure (Client 100)
10
Project Basis deletes all DEV clients except SAP reference (000, 001, 066) and Client 100
3
Project Team extends master data andcustomizing for blueprinting activities
7
Project Team imports Delta transports into DEV
Client 100 to sync as per blueprint status
11
Project Basis sets up the Transport Path to QA Client 100 and optionally to other clients
