is-b bank components sap r/3 enterprise · 31 is-b bank components 31.1 changes in area menu 31.2...

IS-B Bank Components

Release Notes

SAP R/3 EnterpriseRelease 4.70

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31 IS-B Bank Components31.1 Changes in area menu31.2 SAP R/3 Enterprise Financial Services 1.10 (New) 131.3 New Functions for the SAP BP for Fin. Services (Extended) 131.4 IS-B-BCA Bank Customer Accounts 531.4.1 Average Daily Balance (ADB)31.4.2 Annual Percentage Yield (APY)31.4.3 Business Partner Tax ID31.4.4 Dormancy and Escheat Compliance31.4.5 Standard Funds Availability31.4.6 BCA US/Canada: Overview of Enhancements31.4.7 Permanent Holds New Features31.4.8 Reports for IRA Portfolios31.4.9 Retirement Plan31.4.10 Create BCA Account for a Retirement Plan31.4.11 Retirement plan payment transactions31.4.12 Retirement Plan Standing Order31.4.13 Time Deposit Enhancements31.4.14 Withholding Tax on Withdrawals31.4.15 IS-B-BCA-BF Basic Functions31.4.15.1 Changes in the BCA Customizing Structure31.4.15.2 Note Window for Payment Transaction Blocks 2331.4.16 IS-B-BCA-MD Master Data31.4.16.1 IS-B-BCA-MD-CD Condition31.4.16.1.1 Dynamic Balances31.4.16.1.2 Accrual/Deferral of Charges and Committment Interest 2431.4.16.2 IS-B-BCA-MD-PR Product definition 2531.4.16.2.1 Extended Payment Notes During Account Closure 2531.4.16.3 IS-B-BCA-MD-AC Account31.4.16.3.1 Principle of Dual Control for Account Closure 2531.4.16.3.2 Time Periods During Account Balancing31.4.16.3.3 Resubmission Function31.4.16.3.4 Changes in the Account Master Data31.4.17 IS-B-BCA-AM Account

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Management 2731.4.17.1 Changes in Account Management31.4.17.2 IS-B-BCA-AM-BF Basic functions31.4.17.2.1 Define Customer Fields31.4.18 IS-B-BCA-PT Periodic Tasks31.4.18.1 IS-B-BCA-PT-IC Interest /charge calculation 2831.4.18.1.1 Compensation Hierarchy Enhancements31.5 IS-B-DP Transaction Data Pool 2931.5.1 IS-B-DP-BD Basic Data31.5.1.1 Deletion of Objects in the SEM Banking Data Pool 2931.5.2 IS-B-DP-EDT External Data Transfer 3031.5.2.1 New Transfer Category for Financial Product Class Data 3031.5.2.2 IDoc Framework for RFC Interface for External Data Transfer 3031.6 IS-B-PA Profitability Analysis 3131.6.1 Activities and Changes after the Upgrade31.6.2 IS-B-PA-STC Single Transaction Costing 3231.6.2.1 NPV of Charges and Commission31.6.2.2 Distribution of Charges and Commission to Periods 3231.6.2.3 Interest Contribution Based on Average Volume 3231.6.3 IS-B-PA-PA Profitability Analysis 3331.6.3.1 SD Interface for Bank Operating Concerns31.7 IS-B-RA Risk Analysis31.7.1 Activate the Analysis Structure after Release Upgrade 3331.7.2 Inclusive Indicator in the Calculation of Accrued Interest (Enhanced) 3431.7.3 IS-B-RA-MR Market Risk Analysis 3431.7.3.1 Reorganization of Single Records in the Area Menu (Changed) 34


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31.7.3.2 Increased Length of Fields for Volatilities (Changed) 3531.7.3.3 Creation and Valuation of Eonia Swaps (Enhanced) 3531.7.4 IS-B-RA-CL Default Risk and Limit System 3531.7.4.1 Glossary in SAPTerm (New)31.7.4.2 Mass Data Capability in the Postprocessing Function (Enhanced) 3631.7.4.3 Initial Screen for Processing Business Partner Relationships (Changed) 3731.8 IS-B-SA Strategy Analyzer 3731.8.1 IS-B-SA-ALM Asset/Liability Management 3731.8.1.1 Creation and Valuation of Eonia Swaps (Enhanced) 3731.8.1.2 Interest Result Evaluation for Forward Exchange Transactions (Changed) 3731.8.1.3 Spreads in the Cash Flow Evaluation (Changed) 3831.8.1.4 Complete Balance Sheet and Profit/Loss Simulation (new) 38


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31 IS-B Bank Components

31.1 Changes in area menu

Use

As of SAP R/3 Enterprise Financial Services 1.10 (EA-FINSERV 110) the following newfunctionalty is in force:

In the area nemu for bank applications, the business partner is newly added.

The area menu, Bank applications -> Banks current account-> Info system was enhanced with thefollowing transactions:

F9A8 - Display check blocks

F97J - Application log balance sheet preparation

The area menu, Banks current account -> Info system -> G/L transfer:

F978 - Reconciliation list FI documents

Area menu Banks current account -> Info system -> G/L transfer -> Reconciliation BCA / G/L:

F97I - Reconciliation of total BCA balances against SAP FI balances

F9H_GLDATA - Comparison FI data with BCA

31.2 SAP R/3 Enterprise Financial Services 1.10 (New)

Use

With SAP R/3 Enterprise, Core Banking, SEM Banking; CFM, the SAP Business Partner for FinancialServicesand Investment Management for Insurance Companies will be delivered in the package SAP R/3Enterprise Financial Services 1.10 (EA-FINSERV 110) as a component of the SAP R/3 EnterpriseAdd-On. The encapsulated development of SAP R/3 Enterprise Core on the one hand and the extensionsand packages - such as the Financial Services package - on the other allow for separate support packages:Support Packages for SAP R/3 Enterprise Core and Support Packages for the extensions and packages inSAP R/3 Enterprise Add-On.

In order for you to be able to use the SAP R/3 Enterprise Financial Services 1.10 (EA-FINSERV110) package you need to activate the application EA-FS (R/3 Financial Services) in the SAPCustomizing IMG activity Activation Switch for Components of SAP R/3 Enterprise Extension Set.

31.3 New Functions for the SAP BP for Fin. Services (Extended)

As of Release SAP R/3 Enterprise Financial Services 1.10 ( EA-FINSERV 110), the following changes

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and enhancements have been made to the SAP Business Partner for Financial Services. You will findgeneral changes to the SAP Business Partner under application component CA-BP.

1. Changes to the menu for the SAP Business Partner for Financial Services

Use

In conjunction with the changes to the business partner user interface, the menu for the SAP BusinessPartner for Financial Services has also been restructured.

You can access business partner maintenance in the menu under

Accounting -> Corporate Finance Management -> Business Partner -> Maintain Business Partner

and under

Accounting -> Bank Applications -> Business Partner -> Maintain Business Partner.

From here onwards, both Business Partner menu options are identical. You can choose either theMaintain Business Partner function or the Special Functions.

The Maintain Business Partner function contains the following transactions

o Create Business Partner

o Change Business Partner, and

o Display Business Partner

in accordance with the new design for the user interface.

The menu option Special Functions includes both the direct transactions for processing StandingInstructions as well as the customer and vendor links. However, you can also access StandingInstructions via the Maintain Business Partner function.

The BDT Customizing options are no longer included in the SAP Easy Access menu. You make the BDTsettings for the SAP Business Partner using transaction BUPT. In addition, you can implement thespecific, technical settings for the SAP Business Partner for Financial Services using either transactionFTBPT or user role SAP_FS_BP_DEVELOPER_AG.

2. Changes to the user interface for the SAP Business Partner for FinancialServices

Use

With the conversion of the user interface for the SAP Business Partner for Financial Services inaccordance with the new design guidelines, the

o company code-dependent data and the

o differentiation type-dependent data

are no longer integrated in the main screen sequence. This information is summarized in sub-screensequences. You can access it using the corresponding pushbuttons in business partner maintenance.

3. Changes in the SAP Implementation Guide

Use

In conjunction with the changes to the user interface, the structure of the Implementation Guide (IMG)

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was also revised. You will now find the settings for the SAP Business Partner for Financial Servicesunder

o Corporate Finance Management -> Basic Functions -> SAP Business Partner for FinancialServices

o SAP Banking -> Customer Accounts -> Basic Settings -> SAP Business Partner for FinancialServices

o SAP Banking -> Loans Management -> Basic Settings -> SAP Business Partner for FinancialServices

4. Changed functions and new functions for the SAP Business Partner forFinancial Services

Business Partner Ratings

Use

External service providers, government agencies or departments within the company rate businesspartners for various business processes. The ratings take account of their payment history, credit standingor other criteria. You can define the corresponding rating results for various rating procedures togetherwith their business validity.

Dun & Bradstreet or Schufa are examples of external service providers; the Federal Banking SupervisoryBoard is an example of a government agency.

Effects on Customizing

The rating procedures and corresponding rating results are defined in the IMG.

You arrive at the respective IMG activity using the following menu paths:

o Corporate Finance Management -> Basic Functions -> SAP Business Partner for FinancialServices -> SAP Business Partner -> General Settings for Financial Services -> Business PartnerRatings

o SAP Banking -> Customer Accounts -> Basic Settings -> SAP Business Partner for FinancialServices -> SAP Business Partner -> General Settings for Financial Services -> Business PartnerRatings

o SAP Banking -> Loans Management -> Basic Settings -> SAP Business Partner for FinancialServices -> SAP Business Partner -> General Settings for Financial Services -> Business PartnerRatings

Additional Information

Use

Additional Information offers you a generic possibility of defining further information for the businesspartner. You can define so-called information categories in Customizing. "Pets" or "vehicles" areexamples of information categories. You then determine which attributes should be made available foreach information category. Different field types are intended here.


You can define information categories in the IMG. Select the attributes for each information category anddetermine which attribute is used as a required entry or an optional entry field. Furthermore, you can also

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determine various information types for each information category.


o Corporate Finance Management -> Basic Functions -> SAP Business Partner for FinancialServices -> SAP Business Partner -> General Settings for Financial Services -> AdditionalInformation

o SAP Banking -> Customer Accounts -> Basic Settings -> SAP Business Partner for FinancialServices -> SAP Business Partner -> General Settings for Financial Services -> AdditionalInformation

o SAP Banking -> Loans Management -> Basic Settings -> SAP Business Partner for FinancialServices -> SAP Business Partner -> General Settings for Financial Services -> AdditionalInformation

Partner Grouping Characteristics

Use

You can assign a business partner to a single grouping characteristic. The values of the groupingcharacteristic can be freely defined. For example, you can uniquely assign the business partners for agroup to a group subsidiary using this grouping characteristic, provided they are mapped within a client.

You can also include the grouping characteristic when configuring authorizations.


The grouping characteristics are defined in the IMG.


o Corporate Finance Management -> Basic Functions -> SAP Business Partner for FinancialServices -> SAP Business Partner -> General Settings for Financial Services -> Partner GroupingCharacteristics

o SAP Banking -> Customer Accounts -> Basic Settings -> SAP Business Partner for FinancialServices -> SAP Business Partner -> General Settings for Financial Services -> Partner GroupingCharacteristics

o SAP Banking -> Loans Management -> Basic Settings -> SAP Business Partner for FinancialServices -> SAP Business Partner -> General Settings for Financial Services -> Partner GroupingCharacteristics

Differentiation Type

Use

Each business partner appears once in a client in the System. You can use the differentiation type todistinguish between selected business partner information. For example, you can now definedifferentiation types for different areas of a group. You can then store the rating results for eachdifferentiation type, for example. This means that a different rating result can be made available for eacharea in the company group.

The following information can be defined as dependent on the differentiation type:

o Roles

o Relationships

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o Ratings

o Additional Information

There is also a table that you can extend to include differentiation type-dependent attributes.


The differentiation types are defined in the IMG.


o Corporate Finance Management -> Basic Functions -> SAP Business Partner for FinancialServices -> SAP Business Partner -> General Settings for Financial Services -> DifferentiationType: Criterion

o SAP Banking -> Customer Accounts -> Basic Settings -> SAP Business Partner for FinancialServices -> SAP Business Partner -> General Settings for Financial Services -> DifferentiationType: Criterion

o SAP Banking -> Loans Management -> Basic Settings -> SAP Business Partner for FinancialServices -> SAP Business Partner -> General Settings for Financial Services -> Control Table forDifferentiation Type: Criterion

In addition, you must also determine whether or not the roles, relationships, ratings and additionalinformation are used dependent on or independent of the differentiation type.

5. Special note

Deleting/archiving business partners

The (central) SAP business partner already provides the infrastructure for deleting (physical deletion) andarchiving (physical deletion and storing in an archive) business partner data. The specifications for theSAP Business Partner for Financial Services are not integrated in this infrastructure, however.

You cannot guarantee that the business partner data is not being used in an application when you delete orarchive data. Furthermore, you cannot delete or archive the parts that are specific to the SAP BusinessPartner for Financial Services.

For the reasons mentioned above, you should therefore not use the existing infrastructure to delete andarchive data for the SAP Business Partner for Financial Services.

31.4 IS-B-BCA Bank Customer Accounts

31.4.1 Average Daily Balance (ADB)

Use

Average daily balance is the amount calculated by adding the day end balances for each day and divide itby the number of days in the period.

As part of US specific functionality,

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Account master has been extended to show average daily balance as part of 'Display history'. Based onthe history date range, ADB is calculated for posting dates and value dates using the functions shownbelow. They are displayed next to the corresponding balances in same currency as displayed for balances.

New function modules for average daily balance calculation.

BCA_US_ADB_CALC Average daily balance calculation for single account

BCA_US_ADB_CALC_T Average daily balance calculation for multiple accounts

Reporting transaction F970has been extended to show average daily balance also. The selection screenhas been added with 2 new parameters for entering the date range "From" and "To" as required entries.In the report output, the last column displays average daily balance based on value dates. in the samecurrency as available balance.

31.4.2 Annual Percentage Yield (APY)

Use

The Annual Percentage Yield (APY) earned as defined under the US Federal Reserve System RegulationDD, Section 230.6, is an annualized interest rate that reflects the relation between actual interest earnedon an account and Average Daily Balance (ADB) of that same account during the statement period.

Effects on Existing Data

APY has no impact to existing data except that a new structure was appended to an existing structure thatis passed to event 00010510. APY can be found in the Table parameter T_DATA_OUT under theHEADER component. APY is stored in HEADER-BCAUS_STAT_APY.

31.4.3 Business Partner Tax ID

Use

In United States, tax identification number is the 'Social security number' for an individual and 'Taxidentification number' for organisations.

For US customers, this tax number can be maintained in business partner under the tab 'Control data'.Always choose the tax identification category as "US01" . The formating validation ensures the numberformat needed for socical security number and Tax identification number.


The following is applicable for customers who have been using the field XSSN in business partner tableBUT000.

In the earlier release BCA version 4.63, US social security number is maintained in the table BUT000(field XSSN). This field XSSN is not avialable any more. Hence this identification number can bemaintained as shown above. The contents of field XSSN from the table BUT000 need to be transferred to

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the table DFKKBPTAXNUM under the category "US01" for US customers as part of upgrade.

See also

Maintain Business partner

31.4.4 Dormancy and Escheat Compliance

Use

Dormancy and Escheat Compliance is statutorily provide for by the various states in abandoned propertylaws pertaining to abandonment of personal property. Many of these states have adopted the UniformDisposition of Unclaimed Property Act (1995, National conference of Commissioners on Uniform StateLaws, Omaha, Nebraska).

Statutes on escheat of bank deposits are based on the doctrine that when deposits remain inactive andlapse of the statutory period has occurred, a presumption arises that the owner has died intrastate withoutheirs. When this occurs, the trend in state legislation is that these deposits are turned over to the state.

The Dormancy and Escheat Account Maintenance report can be accessed via transactionBCA_US_DEA1.

Under the Account Maintenance tab, the Dormancy and Escheat Account Maintenance occurs in threephases. They are identified by the Status Enhancement that is set on the Account (Status Definition):

0020 - Inactive, no customer initiated transactions (Inact /no cust init trans): This is where the AccountHolder has not initiated any transactions and the Bank has maintained contact with the Account Holder.

0021 - Dormant, customer contact has been lost (Dormant/cust contact lost): This is where the Bank haslost contact with the Account Holder of an Inactive Account for a prescribed period of time.

0002 - Closed, flagged for archive (Closed/flagged for arch.): This is where the Account has beenDormant for a specified period of time and is finally closed as Escheat. The balance of the Account isturned over to the state. There is no specific status designated for Escheat. The standard status of 0002,Closed/flagged for arch. is used.

Under the Correspondence History tab, a log of correspondence can be tracked on the Account Holder.Entries can be created, edited and/or reversed as needed. Correspondence History is used to establish thelength of time elapsed in order to determine Dormancy.

Under the Escheat Adjustment tab, adjustments can be made to those Accounts that have been reportedas Escheat.

Under the Create Escheat File tab, an Escheat file and/or report is generated that can be submitted to thelocal jurisdiction.


Dormancy and Escheat Compliance uses existing Account Information. The only impact to Accounts iswhen the Escheat program is updating the Account Status and closing the account. Everything else isstored in it's own custom tables.

Effects on Data Transfer

The Dormancy and Escheat Accounts Maintenance report (Transaction BCA_US_DEA1) is a stand alone

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report.


In addition to the normal customizing needed for standard BCA, the following items will also need to becustomized:

- Maintain Escheat Attributes

- Maintain Escheat Property Codes

- Maintain Escheat Relationship Codes

- Maintain Escheat Deduction Codes

- Maintain Escheat Addition Codes

- Maintain Escheat Deletion Codes

- Maintain Escheat Account Closure Reference

- Maintain Dormancy Correspondence Codes

31.4.5 Standard Funds Availability

Use

Availability normally refers to the banks policy on the length of funds available on new deposits.Compliance for the availability of funds is regulated via the US Federal Reserve System, Regulation CCwhere limits are applied to the length of holds on funds. Often, the major factor affecting the length of ahold is related to the type of deposit being made.

There are three major categories of availability:

· Next Day

· Standard Availability

· Exceptions Availability

Next day refers to the simplest type of deposits, such as cash, electronic transfers, and local guaranteedchecks such as a cashiers check or certified check. Standard Availability is related mainly to local andnon-local checks. Finally, Exceptions refers to longer holds that are applied in situations that areconsidered more rare. For example, there are longer holds on large deposits over $10,000 in newaccounts, as well as deposits on accounts for holders who have overdrawn their account frequently.


Standard Funds Availability is made up of a number of BTE's that have been integrated into the existingPayment Order (External) processing.

In order to use the BTE's correctly, the sample interfaces provided may need to be copied and modifiedto customer specifications.

The following sample interfaces have been provided:

- SAMPLE_INTERFACE_00015020 - Value Date Adjustment for Holds

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- SAMPLE_INTERFACE-00015033 - Holds Deletion (not used*)

- SAMPLE_INTERFACE_00015036 - Holds Processing/Creation

- SAMPLE_INTERFACE_00015041 - Holds Update

* BTE 00015033 will never be used for deleting an Availability Hold. BTE 00015033 is called during areversing of an Internal Payment Item. However, Availability Holds are only created for externalpayment items. Since a Hold can never exist for an internal payment item, the BTE will never be used todelete the Hold.


After copying the sample interfaces provided, the entries in the Activate SAP-Application FunctionModule (P/S) must be maintained in IMG. Position to the Events 00015020, 00015033, 00015036 and00015041 and enter the name of the copied function modules.

31.4.6 BCA US/Canada: Overview of Enhancements

Use

The BCA component for North America (US and Canada) features the following new functions andenhancements:

Retirement Plan

Reports for Retirement Plan

Business Partner Tax ID

Tax Withholding

Funds Availability

Average Percentage Yield

Dormancy and Escheat

Average Daily Balance

Time Deposit Enhancements

Permanent Hold Enhancements


o Please remove entry 'BCA' with description 'US BCA enhancement' for business partner in theBDT tableApplications for business partner. This entry has been replaced by a new entry 'BKUS'.See Customizing below for details.


These enhancements must first be activated by going through the following steps:

o Please activate US version of BCA for application component 'BANK/CFM'.

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o Please activate entry 'BCA_US' with text 'US Banking Events' in table Application indicatorwithin the BTE settings.

o Please activate entry 'BKUS' with description 'US BCA enhancement' for business partner in theBDT tableApplications for business partner

o Please activate entry 'BCA' with description 'US BCA enhancement' for account master in theBDT tableApplications for account master.

o Please activate entry 'RTPA' with description 'Retirement plan' for account master in the BDTtable Applications for account master

o Please activate entry 'RTP' with description 'Retirement plan' for standing order in the BDT tableApplications for standing order

o Please replace the standard view BKK110 (Blocks) by a different view BCA110(Amount-dependent Blocks) for account master in the BDT table. To do this, go to Define Sections:Overview and highlight the section BKK110 (Blocks). Then double click on Assign Section ->View. Edit the entry by replacing the view BKK110 (Lock) by BCA110 (Lock - US Specific).

31.4.7 Permanent Holds New Features

Use

Change Document - Change Documents are now recorded with the creation and maintenance of Holdswithin an account. After changes have been made, please look at dialog within "Account Changes" to seeany changes that have been loged.

Direct Input - It is now possible to update accounts with Permanent Holds using the standard Direct Inputfunctionality of BCA.

Field Groups - Field Groups have been added so that Permanent Hold default field values can bemaintained via the Product Configurator

Validity Dates - Holds are now valid inclusively from their start date until the end date. This means thatall Hold types are not valid (and thus do not affect available balance) the day after their (validto) enddate.

Authorizations - The authorization of Permanent Holds is very similar to Limits, but uses a differentactivity. Authorization for the creation of Permanent Holds within BCA accounts is controlled withActivity 23 (Maintain). This new activity has been added to Authorization Object F_BKKA_BPG,F_BKKA_GRP, and F_BKKA_PRG.

31.4.8 Reports for IRA Portfolios

Use

Year-end Statement report

Year-end statements for a given year can be displayed with the report "Year-end Statements". The

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selection criteria for this report are:

o A range of bank areas

o A range of plan numbers

o A range of plan types

o A range of business partners in the role of accountholder or statement recipient.

The above mentioned selection criteria are optional. The only mandatory field to start the report is thecalendar year. The year entered, should be a year in the past because the functionality to forecast theyear-end statement(s) for future years is not (yet) supported. Once the report displays the fair marketvalues of the plans that meet the selection criteria, it is possible to drill down and display the:

o business partner data of the accountholder

o retirement plan data

o detailed Year-end statement

Age Limits report

The report "Age Limits for Retirement Plan" offers the functionality to display a list of plan owner whoreached the age on which they are either eligible to take withdrawals from their IRA portfolio, required totake withdrawals from their IRA portfolio, or no longer eligible to make contributions to their IRAportfolio.

The selection criteria for this report are:




o A range of plan owner numbers.

The above mentioned selection criteria are optional.

This report offers the additional functionality to display a list of plan owners who almost reached the ageon which they are either eligible to take withdrawals from their IRA portfolio, required to takewithdrawals from their IRA portfolio or no longer eligible to make contributions to their IRA portfolio.This can be achieved by entering a value in the field "Deviation from age limit". For example: The valueof the "Lower age for distributions" for a traditional IRA has been set in customizing to 59.5 years. If (onthe selection screen of this report) a value of 1.5 is entered in the field "Deviation from age limit" and theradio button "Age limit for eligible distributions" is selected, the report will display those plan ownerswho's age is in the range from 58 to 59.5 years.

If there are plan owners whose birthday has not been registered in the system, the report will give you theoption of displaying a list of these plan owners.

If the age limits have not to been maintained in customizing (Maintain Age Limits), this report will notdisplay the desired list.

Plan owners who have deceased will not be displayed in the report's list.

Contribution Limits report

The report "Contribution Limit" offers the functionality to display a list of plan owner who made anannual contribution to their IRA portfolio, which is either above the allowed contribution limit, or below

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the allowed contribution limit.

The only mandatory field to start the report is the calendar year. The year entered, should be a year in thepast because the functionality to forecast the contribution(s) of plan owners for future years is not (yet)supported. An optional selection criterion is a range of plan owners.

If the contribution limits have not to been maintained in customizing, this report will not display thedesired list. Plan owners whose birthday has not been registered in the system will not be displayed in thereport's list. Plan owners who have deceased will not be displayed in the report's list either.

Calculation of the Fair Market Value

The fair market values of selected IRA portfolios can be calculated using the report "Calculate or Updatethe Fair Market Value of a Retirement Plan". The selection criteria for this report are:




o A range of plan owners.

The only mandatory field to start the report is the calendar year. The year entered, should be a year in thepast because the functionality to forecast the fair market value(s) of IRA portfolio(s) for future years isnot (yet) supported.

The report can be started in three categories:

o As a simulation run: updates to the database tables will not be performed.

o As a "real" run: the database tables will be updated.

o As a "real" run with printing capabilities: the database tables will be updated and the fair marketvalue will be printed. However, the printing functionality has to be coded by the customer: only aninterface containing the basic information has been provided.

The report will calculate the fair market value(s) of the IRA portfolio(s) as of December 31 of the enteredyear. However, if the entered year is the current year and the report is executed before December 31, thereport will calculate the fair market value(s) of the IRA portfolio(s) as of the current system date.Example: if the current date is June 30, 2002 and the entered value for "Calendar year" is 2002, the reportwill calculate the fair market value(s) of the IRA portfolio(s) as of June 30, 2002. If the current date isJune 30, 2002 and the entered value for "Calendar year" is 2001, the report will calculate the fair marketvalue(s) of the IRA portfolio(s) as of December 31, 2001.

If need be, this report can be run multiple times for the same selection criteria. If this is done, the fairmarket value(s) will be calculated using the most current information (for the entered calendar year) inthe database.

Example: The report ran on January 2, 2002 for the calendar year 2001. The fair market value(s) for theselected IRA portfolio(s) has been calculated and stored as of December 31, 2001. After January 2, 2002it happened that a number of backdated payment items had to be made. The posting date of thesebackdated payment items is before December 31, 2001. This results in a situation that the fair marketvalue as of December 31, 2001 for one or more IRA portfolios has changed. In order to store the correctvalue of the fair market value, the report "Calculate or Update the Fair Market Value of a RetirementPlan" can be run again. The fair market value(s) of the effected IRA portfolio(s) will now be updated.

This report can be started online as well as in a batch run. Error, warning or display messages (if any) will

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not be displayed on the screen. Instead they will be written in a log file. This log file can be accessedusing the report "Select Application log for Update Fair Market Value". Select the appropriate timerestriction in order to display the log file for the desired report "Calculate or Update the Fair MarketValue of a Retirement Plan".

Verification of the Fair Market Value

The "Report for the Verification of the Fair Market Value Retirement Plan" will compare the stored fairmarket value with the fair market value that is calculated from the contributions and withdrawals made tothe IRA portfolio. IRA portfolios for which these two values are identical will be displayed with a green"OK" icon; IRA portfolios for which these two values are not identical will be displayed with a red"Invalid" icon.

The selection criteria for this report are:




o A range of business partners in the role of accountholder or statement recipient.

The above mentioned selection criteria are optional. The only mandatory field to start the report is thecalendar year.

Only IRA portfolios for which the fair market value has been calculated using the report "Calculate orUpdate the Fair Market Value of a Retirement Plan" will be displayed.

31.4.9 Retirement Plan

Use

The functionality to maintain an IRA (Individual Retirement Account) is now supported.

A retirement plan is a portfolio consisting of special savings accounts. At this time, three differentretirement plan types have been implemented:

o A "Traditional IRA" is designed to encourage people to save for their retirement. Accountholderscan accumulate funds to be primarily used for his/her retirement and to provide for a beneficiaryafter his/her death.

o A "Roth IRA" is designed to encourage people to save and invest. Accountholders can accumulatewealth and transfer it to the accountholder's beneficiary (or beneficiaries).

o A "Coverdell Education Savings Account" (formerly known as "Education IRA") is designed toaccumulate funds for a minor to be primarily used to pay the postsecondary educational expenses ofa child, grandchild, or other minors. It is not intended to accumulate funds for retirement.

The trustee or custodian (usually a bank) and the accountholder of an IRA have various legal andcontractual rules they must follow. These rules are maintained, enforced and published by the InternalRevenue Service (IRS).

The rules governing an IRA include (but are not limited to) contributions, distributions and IRA types.

Because the IRS can change the rules imposed upon an IRA, the technical implementation of these rules

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has to be flexible. This means that many of the rules have to be maintained in customizing tables. Forinstance: the rules governing the age limits for an IRA have to be maintained in Retirement planmaintenance -> Limits -> Maintain age limits. If one or more of these rules are not fulfilled, the programwill usually issue a warning message, instead of an error message. Because warning messages can be"overruled", the ultimate responsibility for deviating from the predefined rules rests with the user of theprogram: there may be very good reasons for doing so that are approved by the IRS.

A retirement plan portfolio can contain any number of BCA and/or time deposit accounts. Although aretirement plan portfolio itself does not contain funds (the funds are held in the BCA and time depositaccount or accounts), the currency has to be maintained on a portfolio level. This means that the funds inthe accounts associated to a portfolio, will all be in the same currency. The contribution and distributionamounts that are reported to the IRS will be reported in the currency maintained on the portfolio level.When creating a portfolio, the currency has to be selected. After the portfolio has been created, thecurrency can no longer be changed.

A retirement plan portfolio has to be created first, before an account can be associated to it. In otherwords: the opening date of a BCA or time deposit account has to be on or after the opening date of theportfolio. The reason for this restriction is that an association of an account, which contains funds, to aretirement plan portfolio is regarded as being a contribution to a retirement plan portfolio. As mentionedabove, there are various rules imposed upon making contributions to an IRA. If existing accounts wouldbe allowed to associate to a newly created retirement portfolio, the complexity of reporting thecontributions and distributions to the IRS would increase disproportional.

If a retirement plan is to be created, certain fields will have to be entered. The three fields which are mostimportant are the "Bank area", the "Plan type" (see above) and the "Opening date".

If a retirement plan will be changed, or displayed, only the fields that identify a retirement plan will haveto be entered: the plan number of a retirement plan and the Bank area.


Because a Coverdell Education Savings Account is used to accumulate funds for a minor, businesspartners in a specific role (in the real worlds, these people are called "parents" or "guardians") can beassociated to a Coverdell ESA. These specific role types can be maintained in customizing: Maintainspecial role types for a Coverdell Education Savings Account

A retirement plan is identified by a "plan number". The plan number is unique for a retirement plan in agiven bank area. When creating a new retirement plan, the plan number can either be assigned by thesystem or by the user. When the system is assigning a plan number, the plan number is numeric. Whenthe user manually assigns a plan number, the number can either be numeric or alpha numeric. Thesesettings can be maintained in customizing:

o Maintain number range interval for retirement plans Different number range intervals may bedefined for different number range numbers. Each number range number can be associated to aninternal or an external number range interval. For an internal number range interval, the system willissue a new number. For an external number range interval, the user is required to enter a numberhim/her self.

o Maintain number range numbers for plan types Different number range intervals may be defined fordifferent plantypes. In order to achieve this, a plantype (or several plantypes) can be associated to anumber range number. This number range number refers on its turn to a number range interval.

Default values can be maintained in customizing:

o Maintain default withholding tax percentage The user can maintain the default percentage for the

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federal withholding tax and the number of revocation days for a retirement plan.

o Maintain defaults and field statuses When creating a new retirement plan, certain input fields can bepre-filled with a default value. This can reduce the time needed to create a new retirement plan. Theuser may wish to change the field status of a screen field. He/she may, for example, wish to hidecertain fields because they are not relevant to them.

Several limits have to be maintained in customizing:

o Maintain contribution dates Per retirement plantype and per contribution type, the contributiondeadline can be maintained. An indication can be made if a shift to the next business day should bemade if the contribution deadline falls on a weekend day or a holiday.

o Maintain age limits Maintain the age limits for making contributions to and taking distributionsfrom a retirement plan. Four age limits can be maintained per retirement plan type:

- The age limit at which contributions to a retirement plan can be made.

- The age limit at which contributions to a retirement plan cannot be made (without beingsubject to a penalty tax). Example: when the accountholder of a Coverdell education savingsaccount turns 18, contributions cannot be made to his/her IRA.

- The age limit at which the accountholder is eligible to make distributions. Example: when theaccountholder of a traditional IRA turns 59.5, he/she is eligible to make distributions fromhis/her IRA.

- The age limit at which the accountholder is required to make distributions. Example: when theaccountholder of a traditional IRA turns 70.5, he/she is required to make distributions fromhis/her IRA. Failing to do this will lead to a tax penalty.

o Maintain contribution limit ids In order to assess whether or not a accountholder exeeded thecontribution limit, it may be necessary to add the contributions made to different plantypes. In orderto make this possible, one or more plantypes can be associated to a contribution limit code.

o Maintain contribution limits Using this transaction, contribution limits can be maintained for eachcontribution limit code. Some contribution limits are age dependent, therefore the minimum age forwhich a contribution limit is valid needs to be maintained as well.

o Assign retirement plan type to contribution id In order to assess whether or not a accountholderexeeded the contribution limit, it may be necessary to add the contributions made to differentplantypes. In order to make this possible, one or more plantypes can be associated to a contributionlimit code.

The description for the retirement plan types, the contribution types and the amount identifiers, need to bemaintained in customizing as well.

o Maintain retirement plan types The type code is the central entity of a retirement plan. Eachretirement plan type has a different set of rules for contributions and distributions. These rules areissued and enforced by the IRS.

o Maintain contribution types The contribution types are relevant when reporting a contribution to theIRS.

o Maintain amount identifiers Identifies different amount types used for a retirement plan. Someamount types, will have to be reported to the IRS, others do not.

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The funds in an IRA cannot be stored in the portfolio forever. If the plan owner dies or if the plan ownerreaches a certain age, a minimum amount needs to be withdrawn from the account(s) in the portfolio. Inorder to be able to calculate this so called Required Minimum Distribution (RMD) amount, three tableswill need to be maintained in customizing:

o Maintain joint life expectancy This transaction facilitates the determination of the requiredminimum distribution in case the sole beneficiary of the IRA is the accountholder's spouse who is atleast 10 years younger than the plan owner.

o Maintain single life expectancy This transaction is needed to enable the determination of therequired minimum distribution for a beneficiary of a retirement plan.

o Maintain distribution period This transaction is needed to enable the determination of the requiredminimum distribution for plan owners age 70 and above.

When reporting the withdrawal(s) of funds from the account(s) in the IRA portfolio, the IRS requires thata "Distribution Code" identifies such a withdrawal. The distribution code indicates the cause for thewithdrawal. The IRS requires that the distributions from a retirement plan portfolio are identified asaccurate as possible. Therefore, it may be necessary to append a second distribution code. However, notevery combination of distribution codes is acceptable to the IRS. The descriptions of the distributioncodes as well as the "acceptable" combinations of distribution codes need to be maintained incustomizing.

o Maintain IRS distribution codes Using this transaction, the description of the IRS distribution codescan be maintained.

o Maintain valid IRS distribution sub-codes This transaction can be used to maintain the validcombinations of IRS distribution codes.

When a withdrawal is made from an account belonging to an IRA portfolio, usually federal tax is beingwithheld. The transaction type(s) needed for this process have to be maintained in customizing: MaintainWithholding transaction type for payment items.

Postings of interest /charges need to be maintained for each posting category in the customizingtransaction: Maintain mapping of Posting category and Amount identifier.

Authorization management for the retirement plan maintenance can be performed in customizing as well.

o Maintain authorization types Authorization types are used to define which retirement plans a user isallowed to maintain. Authorization on the level of a group of retirement plans.

o Maintain authorization object group Using this transaction, an authorization object can bemaintained. Authorization on a application level (can only be used in combination withauthorization groups).

o Maintain authorization groups In this activity you define the corresponding values and a name forthe authorization group field and assign it to an authorization object. Authorization on the level ofan individual retirement plan. An authorization group is always associated with an authorizationobject group.

o Define fieldgroups relevant for authorization In this activity, you choose those fieldgroups whosefields can only be maintained or displayed by individual users. Authorization on the level of aninput field.

o Generate and assign Authorizations In this step, you can create roles and use the profile generator togenerate authorization profiles.

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The screen sequence and the positions of the various input fields on those screens is fully customizableby using Maintain screen configuration.

See also

Retirement Plan BCA Account

Retirement Plan Standing Order

Retirement Plan Payment Transactions

31.4.10 Create BCA Account for a Retirement Plan

Use

A retirement plan may consist of one or several BCA accounts belonging to the same account holder.Once a retirement plan is created for a customer, you may create BCA accounts and maintain theaccounts under the plan. The system automatically maintains the link between a BCA account and theplan to which it belongs. BCA accounts, once created and established under a retirement plan, cannot beremoved from the plan, or tied to a different plan. The user will not be allowed to manually change thelink between the plan and the BCA accounts under the plan. This is because changing the plan on a BCAaccount has the net effect of moving funds in or out of a plan. Contributions and distributions of funds toand from a retirement plan are subjected to specific rules and guidelines established by the government.To properly track the contributions and distributions of plan monies, a payment item or payment ordershould be executed on the BCA account.

Two new fields, Retirement Plan Number and Plan Type, have been added to the Basic screen in BCAAccount Maintenance and to the Fast Entry screen for Time Deposit accounts.

Use the transaction F9K1 to create a BCA account and link it to an existing retirement plan by entering aplan number. If you use the transaction BCA_US_TDA1 to create a BCA time deposit account and link itto an existing retirement plan, the initial deposit will be tracked as a contribution towards the plan.

The system performs the following validations when the Retirement Plan Number is entered:

- The plan number must exist in the bank area of the BCA account.

- The BCA account holder must be the same business partner as the plan account holder.

- The BCA account open date cannot be prior to the plan open date.

- The BCA account currency must be the same as the plan account currency.

- The BCA account status cannot be active if the plan status is inactive.

When the account is saved, the system will create the account and link it to the plan. Once the account iscreated, you will not be able to add, change or delete the Plan Number.

When you use the transaction RTP_US_M1 to change a retirement plan, or transaction RTP_US_D1 todisplay a retirement plan, you will be able to view a summary of all BCA accounts that belong to aretirement plan. On the Portfolio Account tab-screen, you may select a BCA account and jump over tothe BCA Account Maintenance screen to view details of the account.

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The Plan Number field is available for direct input. An append structure IBCA_US_DI_RTP has beenadded to the direct input structure IBKK_DI_AC for BCA Account.


Using the Product Configurator, it is possible to configure which products are allowed for retirementplan. For example, Saving products and Time Deposit product may be offered as instrument accounts foran Individual Retirement Arrangement (IRA), whereas other products such as Checking are not availableas IRA.

Two new product attributes have been created - Retirement Plan Number and Plan Type. Using theProduct Configurator, the bank will be able to make the Plan Number field required, optional or hidden.

- If the field is required, the product can only be used for IRA account.

- If the field is optional, the product may be used for IRA or non-IRA account.

- If the field is hidden, the product may not be used for an IRA account.

See also

Retirement Plan Maintenance


31.4.11 Retirement plan payment transactions

Use

The functionality of payment items and payment orders have been extended to handle special types ofpayments to BCA accounts which belong to IRA (Individual Retirement Accounts) plan. These specialpayments go through IRA specific validation in addition to the regular payment validation. IRA paymenttransaction history and their summary information are stored separately in addition to the regularpayment information.

All credit transactions are termed as contributions and debit transactions are distributions in IRA.

Payment items:

When a payment item is created for an IRA account through online, the tab 'Trans' meant fortransaction details displays retirement plan information in a separate section. This includes the PlanNumber, Plan Type and Account holder. In addition the following fields are also shown depending onwhether the transaction type belongs to contribution (credit) or distribution (debit).

In case of contribution, following information need to be provided for completing a contributionpayment.

Tax year- Tax year for which contribution is made

Transfer - Indicator for transfer contribution

Contribution ID- In case of transfer, contribution ID is not needed and this field will be hidden

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automatically.

In case of distribution, following information need to be provided for completing a distributionpayment.

Tax year- Tax year for which distribution is made

Transfer - Indicator for transfer distribution.

Primary distribution - Primary distribution code is required

Distribution sub-code

Fed withhold%

Federal withholding

Total WH amount - Automatically calculated by the system based on this formula.

Total WH amount = ( ( Transaction amount * Fed Withhold %) / 100 ) + Additionalwithholding

In case of transfer, only tax year is needed and the rest of the fields are irrelevant and hence they arehidden automatically.

Other payments functionalities like planned items, back dated payments, post processing, reverse, displayand release are all extended to handle retirement plan information except returns. Payment returnfunctionality is not supported for IRA accounts at this moment.

Payment orders:

When an internal payment order is created through online with at least one IRA account, the tabs meantfor Ordering party and Recipient party are extended with retirement plan information similar to paymentitem.

If the ordering party account belongs to IRA plan with credit transaction type (Contribution),contribution information is displayed in ordering party. On the other hand, if the ordering party belongs toIRA plan and the transaction is debit, distribution information is displayed.

Recipient side also works in the similar way.

In case of external payment order, if bank key for recipient party refers to an internal bank area in thesystem, the retirement plan functionality works similar to internal payment order as explained above. Onthe other hand if the bank key refers to any external bank, retirement information is not necessary forrecipient.

Other payments functionalities like foreign, back dated, return, post processing, reverse, display, releaseare all extended to handle IRA payments.


The following extrenal interface functions are extended with IRA payment functionality

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BAPI_PAYM_ITEM_POST_ITEM

BAPI_PAYM_ITEM_POST_SENDER

BAPI_PAYM_ITEM_POST_RECEIVER

BAPI_PAYM_ITEM_POST_CLEARING

BKK_RFC_PAYM_ORDER_POST

See also


Create BCA Account for a Retirement Plan

Retrement plan standing order

31.4.12 Retirement Plan Standing Order

Use

The functionality of BCA Standing Order has been extended to handle automatic distribution orcontribution of funds belonging to Individual Retirement Accounts (IRA).

When you create a standing order for a BCA account that belongs to a retirement plan, additional fieldswill be visible on the main screen to collect distribution or contribution information. Information aboutthe plan to which the account belongs will be displayed. This includes the Plan Number, Plan Type andAccount Holder.

If you enter a transaction type that debits the account, it will be tracked as an IRA distribution when thestanding order is executed. You will be required to enter a primary distribution code. You may alsoenter the distribution sub-code, federal withholding percentage and/or federal withholding amount. Thesystem calculates and displays the total federal withholding amount. The federal withholding percentagefield is visible only if the transaction type is for a fixed debit amount. If the transaction type is for avariable debit amount, the federal withholding percentage field is not available.

If you enter a transaction type that credits the account, it will be tracked as an IRA contribution when thestanding order is executed. The system will automatically track it as a regular contribution type. Rollover, Recharacterization, Conversion and Transfer will not be allowed in standing orders.

The recipient account may not be a BCA account belonging to another IRA. It may be an externalaccount, or a BCA account that is not an IRA, or a BCA account belonging to the same IRA.

When the standing order is executed, the contribution or distribution date will be the posting date. Thetax year of the contribution or distribution will be based on the posting date (or value date if it is differentfrom the posting date).

When you use the transaction RTP_US_M1 to change a retirement plan, or transaction RTP_US_D1 todisplay a retirement plan, you will be able to view a summary of all standing orders of BCA accounts thatbelong to a retirement plan. On the Standing Order tab-screen, you may select a standing order and jumpover to the Standing Order Maintenance screen to view more details.

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The additional fields for distribution and contribution information are available for direct input. Anappend structure BCA_US_IBKKSO_DI_S1 has been added to the direct input structureIBKKSO_DI_S1 for Standing Order.

See also


Create BCA Account for a Retirement Plan


31.4.13 Time Deposit Enhancements

Use

Following development are built on top of the BCA US time deposit functionalities in BANK 4.63.

1) Flexible term period unit.

A further enhancement is implemented to replace account master data dictionary field 'term in days' witha generic 'term' and a 'period unit' field. This provides the flexibilty of configuring accounts with 'day'or 'month' as the time unit, and changing the perfered unit in dialogue transaction. User now has moreflexibility in customizing the product attributes to better fit the business need, e.g. using 'days' as unit forshort term deposit product, and counting 'months' for long term deposit.

To enable the term period unit settings:

(a) In IMG product attribute maintenance (FIPRC3), make sure under account fields -> time deposit data-> time deposit term, two period unit radio buttons exists. Then,

(b) In IMG product configuration (Change product ), enable the above buttons. It is possible to hide onebutton, set one to be display, or set as default. But avoid contradictive settings like defining "day" asdefault and hidden.

2) Time deposit next account balancing date.

After a time deposit account is created, it must be balanced on the maturity date. However, in accountbalancing program, the next balancing date is determined by key date and balancing periods, notnecessarily aligned with maturity date. The enhancement fixes the problem by resetting the next date tomaturity date during account balancing process, if the caculated next date falls after the maturity date.

3) Display description text to the right of transaction type in time deposit fast entry screen.


Time Deposit data has no impact on existing data. All time Deposit specific data is stored separately init's own tables. Table BCA_US_BKK_TD stores certificate number, term, period unit, rollover and

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maturity dates, and other information specifically for this enhancement.


Time Deposit Maintenance screen has been integrated into core BCA utilizing the Business Data Toolset(BDT).

See also

Time Deposit Accounts - Overview

Time Deposit Account Maintenance

31.4.14 Withholding Tax on Withdrawals

Use

Withholding Tax, in general, refers to any taxes deducted from an interest payment being made within thesystem. For example, Withholding Tax on Withdrawals can be used for any withdrawals made fromretirement accounts.


Withholding Tax on Withdrawals is a BTE (SAMPLE_INTERFACE_00015037) that has been integratedinto the current existing Payment Item processing. In order to use the BTE correctly, the sample interfaceprovided will need to be copied and modified to customer specifications. BTESAMPLE_INTERFACE_00015037 will create the additional item that represents the Withholding Tax.It does not affect the original item amount. Adjustment to the original item amount (i.e., deducting theWithholding Tax amount from the original amount) will need to be accomplished via BTESAMPLE_INTERFACE_00010020.

In order to fully emulate the Withholding Tax functionality properly, the BTESAMPLE_INTERFACE_00010020 must be utilized. SAMPLE_INTERFACE_00010020 must first becopied into the same Function Group as SAMPLE_INTERFACE_00015037 is copied to. Then the newSAMPLE_INTERFACE_00010020 must store the c_item-a_amount in a global field G_AMOUNT(defined in the Function Group's top include). The SAMPLE_INTERFACE_00010020 reduces theA_AMOUNT for withholding tax. When the copied SAMPLE_INTERFACE_00015037 is called, it willcreate new position items that are added to the payment item.


After copying the sample interfaces provided, the entries in the Activate SAP-Application FunctionModule (P/S) must be maintained in IMG. Position to the Events 00010020 and 00015037 and enter thename of the copied function modules.

31.4.15 IS-B-BCA-BF Basic Functions

31.4.15.1 Changes in the BCA Customizing Structure

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Use

As of SAP R/3 Enterprise Financial Services 1.10 (EA-FINSERV 110), the following newfunctionality is in force:

The following nodes have been newly created:

SAP-Banking -> Current Account -> Master Data -> Conditions -> Differentiation Types

SAP-Banking -> Current Account -> Master Data -> Account -> Principle of Dual Control for AccountClosure

The following activities have assigned new nodes in the IMG SAP-Banking Current Account:

SAP-Banking -> Current Account -> Master Data -> Conditions -> Differentiation types -> Maintaindifferentiation types

SAP-Banking -> Current Account -> Master Data -> Conditions -> Differentiation types -> Maintaindifferentiation types condition categories

The following activities were newly created in the IMG SAP-Banking Current Account:

SAP-Banking -> Current Account -> Master Data-> Account -> Maintain resubmission reasons

SAP-Banking -> Current Account -> Master Data ->Account -> Principle of Dual Control for AccountClosure -> Switch on/off Principle of Dual Control

SAP-Banking -> Current Account -> Master Data -> Account -> Principle of Dual Control for AccountClosure -> Rejection Resaons

Sap.Banking -> Current Account -> Master Data -> Conditions -> Differentiation Types -> MaintainDifferentiation Values

SAP-Banking -> Current Account -> Account Management -> Basic Functions Account Management ->Maintain Field Name for Customer Fields

SAP-Banking -> Current Account -> Account Management -> Basic Functions Account Management ->Maintain Default Values for Customer Fields

SAP-Banking -> Current Account -> Account Management -> Basic Functions Account Management ->Maintain Note Window for Payment Transaction Blocks

31.4.15.2 Note Window for Payment Transaction Blocks

Use

AS of SAP R/3 Enterprise Financial Services 1.10 (EA-FINSERV 110), the following newfunctionality is in force:

This Customizing table enables you to check blocks when creating a payment item or payment order.

Payment transaction blocks and business partner blocks can be checked, dependent on the bank area.

If blocks are set and the check is switched on, a dialog box display appears when creating a payment itemor payment order.

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The settings can be found in Customizing under Kontokorrent -> Account management -> Basicfunctions account management -> Maintain note window for payment transaction blocks(Maintain note window for payment transaction blocks).

31.4.16 IS-B-BCA-MD Master Data

31.4.16.1 IS-B-BCA-MD-CD Condition

31.4.16.1.1 Dynamic Balances

Use

AS of SAP R/3 Enterprise Financial Services 1.10 (EA-FINSERV 110) the following newfunctionality is in force:

For dynamic balances, the average balance of an account is determined for a specified time period. Thisis compared to a specified minimum balance. If the customer never falls below the minimum balance inthe period, then they are entitled to an interest markdown or fee exemption.


You can maintain the differentiation values with the Customizing setting Current account -> Masterdata -> Conditions -> Maintain differentiation types -> (Maintain differentiation values)

31.4.16.1.2 Accrual/Deferral of Charges and Committment Interest

Use

As of SAP R/3 Enterprise Financial Services 1.10 (EA-FINSERV 110) the following newfunctionality is in force:

Accrual/deferral of charges

Via the transaction F993 or the report RFBKCONA accrual/deferral of charges is now also possible (uptill now only accrual/deferral of interest). You can now choose between pure accrual/deferral of interest,pure accrual/deferral of charges or complete accrual/deferral.

Commitment interest for unused limits

A function has been developed for calculating committment interest for unused limits.

The base capital for this calculation is calculated from the difference between the external overdraft limitand the debit balance per value date. Committment interest is calculated as a % value the same as interestcalcultion in BCA. The calculation of committment interst takes place on the settlement date of thenormal interest calculation. Committment interest is evaluated the same as the interest from the interestscale.

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31.4.16.2 IS-B-BCA-MD-PR Product definition

31.4.16.2.1 Extended Payment Notes During Account Closure

Use

As of SAP R/3 Enterprise Financial Services 1.10 (EA-FINSERV 110), the following newfunctionality is in force:

The functions in the dialog boxes for closing an internal or external reference account, have beenextended.

When closing an internal or external reference account, in customizing you can ensure that four furtherlines are inserted into the "payment note". They are freely defined lines.

It is always predefined that these four lines are left out of the "payment note".

These four line payment notes can be configured via the respective product. You can define a default textand include/exclude any lines. The payment note lines are separated to control the internal or externalreference accounts for the dialog box.

31.4.16.3 IS-B-BCA-MD-AC Account

31.4.16.3.1 Principle of Dual Control for Account Closure

Use

As of SAP R/3 Enterprise Financial Services 1.10 (EA-FINSERV 110), the following newfuntionality is in force:

A bank employee enters the closure data but cannot close the account. Another bank employee thenreleases the account or rejects it.

Once the account has been successfully released, the account can be closed by mass/update run or bydirect account closure. The account checks take place during closing.


In the implementation guide, via the following path: Customer Accounts -> Master Data -> Account-> Priniple of Dual Control for Account Closure

you can:

Switch on/off Principle of Dual Control

Maintain Rejection Reasons.

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31.4.16.3.2 Time Periods During Account Balancing

Use

AS of SAP R/3 Enterprise Financial Services 1.10 (EA-FINSERV 110), the following newfuntionality is in force:

When creating an account you have to specify the balancing date. You can now select the key datesregarding the calander year (end of quarter and end of year) with the help of a radio button.

Effects on System Administration

.

31.4.16.3.3 Resubmission Function

Use


Fields were created to control the business transaction event and the resubmission reason for theresubmission function. In the account, fields are made ready for resubmission maintenance (date andreason for resubmission). The fields can be controlled using the product configurator.


The resubmission reasons are maintained in a Customizing table under Curretn account -> Master data-> Account (Maintain resubmission reasons)

31.4.16.3.4 Changes in the Account Master Data

Use


Changing business partners during the mass run

Example: If account maintenance officer A leaves the company or if it comes to restructuring, theaccount balance has to be distributed to one or more other account maintenance officers. Therefore afunction for 'Mass change' is now available, so that not every account has to be converted separately.

Changing business partners during the mass run works in all business partner roles (also incustomer-specific roles) apart from that of account holder and authorized drawer.

Account name

The account name field is filled with the name of the account holder as default when the account iscreated. Many banks also use product names. This request is solved using a business transaction event

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(No. 00011055 Account master data: Account name) when creating an account, which can be switchedoff by the customer as they wish. The implementation of the BTE is bank area-dependent.

Improved date selection in the turnover display

For the function 'Display turnovers' a function was developed which predefines the field "Posting datefrom" with the value month-end for two months earlier as default in the existing note window. This valuecan be overwritten, if desired.

There is also the BTE SAMPLE_INTERFACE_00011215 for an institute- specific display.

IBAN Switzerland

To calculate the swiss IBAN the function module BKK_IBAN_CREATE_BBAN_CH was madeavailable.

Changing fields for an inactive account

Fields can be kept ready for input, provided the account is not set to "active".

SAP keeps the account currency ready for input, for example, so that it can be subsequently changed. Thecustomer recieves two structures (TBKK_AKT und TBKK_AKT2) with which they can keep furtherfields ready for input.

Restriction: Fields like bank area, account number and product type will remain after the first save of thedisplay fields.

31.4.17 IS-B-BCA-AM Account Management

31.4.17.1 Changes in Account Management

Use


Improved tracking of items in the payment order

In the transaction "F9I3 Display payment order" an additional button is displayed, if the transfer postingswere executed. If you click on this button, all transfer postings for items in this payment order are output,organized according to ordering party and recipient items in chronological order.

Selection screen for the postprocessing of payment item / payment order

The selection screen for postprocessing payment items was enhanced to the business partner number ofthe account maintenance officer.

Display of checks undergone when releasing payment orders

A new tab page is inserted within the screen for releasing payment orders (F9IA),which shows whichchecks were switched off when creating a payment order. Checks are switched off if a payment order iscreated with "Force". If a payment order si created without "force" then the new tab page is not displayed.

Change payment transaction posting date

The payment transaction posting date can no longer be changed without confirmation.

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Display interest expense/ Interest revenue

In the selection screen of the report there are further flags with which you can control whether interestrevenue and/or interest expense should be displayed.

31.4.17.2 IS-B-BCA-AM-BF Basic functions

31.4.17.2.1 Define Customer Fields

Use

As of SAP R/3 Enterprise Financial Services 1.10 (EA-FINSERV 110)

the user will be able to enter their own data in customer fields when creating payment items, paymentorders, standing orders and reference accounts. The structures and tables for the relevant fields have beenenhanced. These customer fields are passed through from editing to the bank statement, so that they canbe called up during bank statement printing.

For payment processes that are not triggered online (posting standing orders, account closure, accountbalancing on reference account), the contents entered online are compared to the default documents. Thecontents entered online priority over the Customizing settings.


The field names and the default values for the customer fields can be maintained in Customizing underCurrent account -> Account maintenance -> Basic functions in account management (

Maintain field name for customer fields

Maintain default values for customer fields )

31.4.18 IS-B-BCA-PT Periodic Tasks

31.4.18.1 IS-B-BCA-PT-IC Interest /charge calculation

31.4.18.1.1 Compensation Hierarchy Enhancements

Use

As of SAP R/3 Enterprise Financial Services 1.10 (EA-FINSERV 110) there are the followingenhancements to the compensation hierarchy:

Interest compensation enhancement to a further account

Up till now a newly created BCA account could only be accepted into an existing interest compensationhierarchy if this heirarchy hadn't been settled.

On the condition that

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the new account has not yet been posted,

the new account is active and

the creation date of the new account lies within the hierarchy period

then it can be entered into the interest compensation hierarchy, even if this has already been settled. Thenew account can also be entered during a settlement period.

Further information on bank statements for a compensation hierarchy

If account balancing has been carried out for the root account since the last bank statement run, additionalinformation for issuing is provided in the bank statement.

For a root account statement (of the interest compensation hierarchy) the bank area, account number andname of account holder determined for all subaccounts of the hierarchy involved.

For a subaccount statement (of the interest compensation hierarchy) the bank area, account number andname of account holder determined for the root account of the hierarchy involved.

31.5 IS-B-DP Transaction Data Pool

31.5.1 IS-B-DP-BD Basic Data

31.5.1.1 Deletion of Objects in the SEM Banking Data Pool

Use

As of SAP R/3 Enterprise Financial Services 1.10 (EA-FINSERV 110), you can delete selectedtransactions from the SEM Banking data pool. You can use this deletion function for the following banktransactions:

o Loans

o Variable transactions

o Accounts

If you delete a transaction using one of the transactions listed below, the deleted information is no longeravailable (in contrast to an archiving process).

The following transactions are available:

o JBDLN_DEL - Transaction for deleting loan master data

o JBDVT_DEL - Transaction for deleting variable transaction master data

o JBDAC_DEL - Transaction for deleting account master data

o JBDFOLN_DEL - Transaction for deleting financial objects for loans

o JBDFOVT_DEL - Transaction for deleting financial objects for variable transactions

o JBDFOAC_DEL - Transaction for deleting financial objects for accounts

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Once the system has run the deletion program, it displays and saves a log. If no errors occurred duringdeletion, the system flags the log with a green traffic light. If only minor errors occurred during thedeletion run, the system flags the log with a yellow traffic light. If you started the run as an update run,the yellow traffic light indicates that the system has deleted all selected transactions or financial objects.If you started the run as a test run, the yellow traffic light indicates that the system would have deleted allselected transactions or financial objects, had the run been an update run. If the system could not deleteall the selected transactions or financial objects, it flags the log with a red traffic light. You can usetransaction SLG1 to display the log at a later point in time. To display deletion logs, select object'JB_DEL'. You can specify a subobject in order to restrict further the choice of logs offered for display.You can choose between the following subobjects:

o LN -> Deletion of loan master data

o FOLN -> Deletion of financial objects for loans

o VT -> Deletion of master data for variable transactions

o FOVT -> Deletion of financial objects for variable transactions

o AC -> Deletion of account master data

o FOAC -> Deletion of financial objects for accounts

You can delete the logs using transaction SLG2.

For more information about the individual deletion programs, see the program-specific documentation.

31.5.2 IS-B-DP-EDT External Data Transfer

31.5.2.1 New Transfer Category for Financial Product Class Data

Use

As of SAP R/3 Enterprise Financial Services 1.10 (EA-FINSERV 110) there is a new transfer category(024) for financial product class data. This enables the system to use the BAPI interface (BusinessApplication Interface) of the financial object for external data transfer. The new transfer category 024combines the existing categories 007 (securities - class data), and 029 (class data - listed derivatives).

The fields of the receiver structure for this new transfer category correspond to the input structures of thefinancial product BAPI and are described in detail in the documentation relating to the financial productBAPI (BAPI_FP_CREATEFROMDATA and BAPI_FP_CHANGE).

See also

Use the BAPI Explorer (Tools -> Business Framework -> BAPI Explorer ) to display the BAPIdocumentation relating to the financial product BAPI.

31.5.2.2 IDoc Framework for RFC Interface for External Data Transfer

Use

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SAP R/3 Enterprise Financial Services 1.10 (EA-FINSERV 110) includes this enhancement, whichenables you to use the ALE interface for external data transfer (EDT). This gives you the option of usingIDoc to send the data that you want to transfer. The system saves the results of the transfer in the statusrecord of the IDoc.

In order to use the ALE interface for external data transfer, proceed as follows:

1. Create the sender structure for the external data transfer.

2. Generate the RFC function module for calling the external data transfer.

3. Generate the IDoc and the ALE inbound function module using transaction KCLI.

4. Check the required ALE settings (for example, assignment of the logical message to the partnerport).

The generated IDoc type contains all the fields of the corresponding EDT sender structure. Note that thefields may be divided between several data segments, as the maximum length for a data segment isrestricted to 100 characters.

If a suitable IDoc is present in the system, the system calls the ALE inbound function moduleautomatically. This function module then activates the RFC part of the external data transfer and transfersthe data from the IDoc to the EDT.

You can see the results of this process in both the EDT log and the IDoc status record.

31.6 IS-B-PA Profitability Analysis

31.6.1 Activities and Changes after the Upgrade

Use

The way in which particular functions of R/3 Core components, in particular CO-PA 'ProfitabilityAnalysis' (under Controlling in the SAP menu), work together with Bank Profitability Analysis (in theSAP menu: Bank Applications -> Profitability Analysis) has been revised for SAP R/3 EnterpriseFinancial Services 1.10 (EA-FINSERV 110).

As a result, if you already use Bank Profitability Analysis and are upgrading to R/3 Enterprise FinancialServices 1.10, certain technical changes are unavoidable. The necessary changes are made by reportsduring the upgrade. These reports are known as XPRAs.

After the upgrade, you must activate all bank operating concerns (data structures and environment). Wealso recommend that you read about the changes to the technical details. These are described in the notebelow.

In addition to the introduction of the SD interface fields, the technical bank field SHERKU has beenchanged into a fixed characteristic and is therefore still available in every bank operating concern. As it isa fixed characteristic, the system uses it automatically when constructing profitability segments(segment-level characteristics). As this was not previously the case, segment-level characteristics weredeactivated. This is equivalent to deactivating the characteristics using Customizing transaction KEQ3.

If you want to use SHERKU in profitability segments and make it fully available in the information

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system and in planning, you can activate it in Customizing. Note that the system does not carry outderivation of profitability segments that have already been posted when you activate SHERKU (seeCustomizing documentation). A suitable report for this will be provided in the future.

In the past, the formula and condition numbers for price determination issued for SAP Banking were thesame as those issued for IS-OIL. As part of the upgrade, the formula numbers 401-409 are replaced by381-389 and the condition numbers 401-403 are replaced by 304-306.

You can find current information on upgrade issues in the following note:

Note:

495869 - XPRA (field catalog) upgrade to R/3 Enterprise

31.6.2 IS-B-PA-STC Single Transaction Costing

31.6.2.1 NPV of Charges and Commission

Use

As of SAP R/3 Enterprise Financial Services 1.10 (EA-FINSERV 110) you can determine theNPV of all charges and commission relating to a loan or money market transaction for each fixed interestrate period. The system determines the NPV based on the market data for the transaction currency and thelocal currency (NPV of charges and commission in transaction currency and local currency). The systemdisplays the NPVs in two new value fields. You can use the costing rule to control whether or not thesystem determines the NPV of charges and commission for a transaction. (In Customizing, chooseProfitability Analysis -> Single Transaction Costing -> Costing -> Costing Rule -> Create FixedProcedures, 'Cash Flow' tab page.)

31.6.2.2 Distribution of Charges and Commission to Periods

Use

SAP R/3 Enterprise Financial Services 1.10 (EA-FINSERV 110) includes a function that allowsyou to determine the total amount of charges and commission arising in the costing period for a loan ormoney market transaction. The amount is displayed in a separate value field. You control whether or notthe system determines the amount of charges and commission in a costing period for a transaction usingthe costing rule settings. (In Customizing, choose Profitability Analysis -> Single Transaction Costing ->Costing -> Costing Rule -> Create Fixed Procedures, 'Per/Vol/Own-Act' tab page.)

31.6.2.3 Interest Contribution Based on Average Volume

Use

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As of SAP R/3 Enterprise Financial Services 1.10 (EA-FINSERV 110) , you have the option ofcalculating the interest contribution for loan transactions on the basis of the average volume. You musthave already created all interest conditions for the transaction using condition items (in the form of(reference) interest rates). The system calculates an average for the costing period based on the interestconditions. The system then determines the interest contribution from the average interest rate and theaverage volume for the costing period. In the costing rule, you can set whether or not the systemcalculates the interest contribution on the basis of the average volume. (In Customizing, chooseProfitability Analysis -> Single Transaction Costing -> Costing -> Costing Rule -> Create FixedProcedures; 'Int/Opp Cont.' tab page, choose 'Calculation with Average Values'.) This is possible only ifthe cash flow for the transaction is determined as part of costing and is distributed to periods on the basisof the average volume.

31.6.3 IS-B-PA-PA Profitability Analysis

31.6.3.1 SD Interface for Bank Operating Concerns

Use

The data structures of all bank operating concerns have been enhanced for SAP R/3 Enterprise FinancialServices 1.10 (EA-FINSERV 110).

Bank operating concerns differ from the standard operating concerns used in the core component CO-PA(Profitability Analysis, found under Controlling in the SAP menu) in that they always have their ownadditional data objects, for example the fixed characteristics 'bank product' (RBPROD) or 'costing rule'(RKALRG). In Banking releases before R/3 Enterprise, certain data objects of core components werehidden and were not therefore included in the data structure of bank operating concerns. These fields arealso known as the SD interface.

This restriction has been removed for R/3 Enterprise. Now when you generate a bank operating concern,the system always includes the fields of the SD interface in the data structures.

This means that the functions of the core component Sales and Distribution (under Logistics in the SAPmenu) are also available in Bank Profitability Analysis.

31.7 IS-B-RA Risk Analysis

31.7.1 Activate the Analysis Structure after Release Upgrade

Use

Activate the dictionary objects of the analysis structure

For Risk Management, in Customizing choose SAP Banking -> Strategic Enterprise Management(SEM) -> Risk Analysis -> Common Settings for Market Risk and ALM -> Characteristics andCharacteristic Values -> Define Analysis Structure. For CFM choose Corporate Finance

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Management -> Basic Analyzer Settings -> Reporting Characteristics -> Define AnalysisStructure. Enter the name of the analysis structure and choose Analysis Structure -> Change.Messages may appear that refer to regenerating the field catalog and the text read modules. Do not makeany changes to the characteristics. Choose Analysis Structure -> Activate.

Once you have activated the analysis structure exist the processing screen. Messages may appearreferring to the generation of service programs.

31.7.2 Inclusive Indicator in the Calculation of Accrued Interest (Enhanced)

Use

As of R/3 Enterprise Financial Services 1.10, you can now define in the evaluation type whether accruedinterest is to be calculated up to the horizon date. To do this, you set the Accrued Int. Calc: IncludeHorizon indicator. If you set the indicator, the horizon date is taken into account in the calculation ofaccrued interest. If you do not set the indicator, the date of the horizon is not included.

Up till now, the calculation included the horizon date and you were unable to influence this inCustomizing.


You do not need to make any changes as regards system administration.


You make the setting in transaction JBREVAL.

31.7.3 IS-B-RA-MR Market Risk Analysis

31.7.3.1 Reorganization of Single Records in the Area Menu (Changed)

Use

From Release SAP R/3 Enterprise Financial Services 1.10 (EA-FINSERV 110), the function"Reorganization of Single Records" is no longer contained in the IMG. Instead, you can access it from thefollowing places in the area menu and under the following new name:

o SAP Menu -> Accounting -> Bank Applications -> Risk Analysis -> Market Risk Analysis -> Tools-> Results Database -> Delete Non-Archived Single Records

o SAP Menu -> Accounting -> Corporate Finance Management -> Market Risk Analyzer -> Tools ->Results Database -> Delete Non-Archived Single Records

o SAP Menu -> Accounting -> Corporate Finance Management -> Portfolio Analyzer -> Tools -> Results Database -> Delete Non-Archived Single Records

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31.7.3.2 Increased Length of Fields for Volatilities (Changed)

Use

The length of the volatility field (data elements TV_VOLA, T_VOLA) was increased from 10.7 to 11.7,that is to four predecimal places.

Very occasionally, there are market conditions in which volatilities of up to 999 occur. This requirementwas not met previously. From SAP R/3 Enterprise Financial Services 1.10 values for the volatility of upto 9 999 are permitted.


You do not need to run any database conversions. Only the format of the data in the database (OLDTABLE) has to be changed. This is done automatically when you upgrade your system to SAP R/3Enterprise Financial Services 1.10.

See also

Statistics calculator

31.7.3.3 Creation and Valuation of Eonia Swaps (Enhanced)

Use

As of SAP R/3 Enterprise Financial Services 1.10 (EA-FINSERV 110) in Risk Management youcan process compound swaps and eonia swaps, for which the payment of capitalized interest does notoccur at the same time as the payment of the nominal amount.

See also Compound Swap and Eonia Swap


To be able to create and value compound swaps and eonia swaps in Risk Management, you have to assignin Customizing the following cash flow indicators to flow types of contract type 6:

o Interest capitalization (sample Customizing 1150) has cash flow indicator 9

o Payment of capitalized interest (sample Customizing 1150) has cash flow indicator 2

To make these settings choose the activity Define Assignment Manually under SAP Banking -> StrategicEnterprise Management (SEM) -> Risk Analysis -> Common Settings for Market risk and ALM ->Valuation -> Cash Flow Indicator and Fictitious Cash Flow Indicator -> Transactions with Flow Types:Assign CF Indicator and Fictitious CF Indicator or Corporate Finance Management -> Market RiskAnalyzer-> Assign Cash Flow Indicator to Flow Types.

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31.7.4 IS-B-RA-CL Default Risk and Limit System

31.7.4.1 Glossary in SAPTerm (New)

Use

From SAP R/3 Enterprise Financial Services 1.10 (EA-FINSERV 110) you can find terminologyand glossary definitions for the Default Risk and Limit System and the Credit Risk Analyzer in the SAPGlossary. To view the glossary choose Help -> Glossary.

31.7.4.2 Mass Data Capability in the Postprocessing Function (Enhanced)

Use

In contrast to the previous postprocessing function, which was able to handle individual transactions only,you are now able to postprocess multiple transactions simultaneously by using the new function.

The function for postprocessing mass data replaces the previous postprocessing function. You can findthe new function in the application menu by choosing

Accounting -> Bank Applications-> Risk Analysis -> Default Risk and Limit System -> Tools->End-of-Day Processing -> Execute Postprocessing

or

Accounting -> Corporate Finance Management -> Credit Risk Analyzer -> Tools -> End-of-DayProcessing -> Execute Postprocessing

Prerequisite

You need to have already run end-of-day processing at least once. You use postprocessing to re-posttransactions that were not included in end-of-day processing or that were subsequently changed.

Advantages of the new function

o You can use the new function for postprocessing facilities and netting groups. If you want topostprocess a facility, enter the object number of the facility. If you want to postprocess a nettinggroup, you need to enter just one transaction of the netting group.

o Provided that in Customizing you have activated parallel processing for end-of-day processing, thisapplies for postprocessing as well.

o The 24-hour capability of the single transaction check (STC) applies during postprocessing inexactly the same way as it does during end-of-day processing. If you have specified a postingdeadline for end-of-day processing, this deadline is ignored in the post-run update of the STCs thataccumulated during postprocessing. Hence postprocessing finishes when all STCs have beenincluded in a post-run update.

o Issuer risk is calculated and updated for the specified transactions only.

Note:

For performance reasons, you are no longer able to run this program as a test. However, you are able to

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trace back the changes in the utilization generation function in Limit Management.

31.7.4.3 Initial Screen for Processing Business Partner Relationships(Changed)

Use

As part of the changes to the business partner, as of Release SAP R/3 Enterprise Financial Services1.10 (EA-FINSERV 110) you process business partner relationships by using one central transaction.

You find the entry transaction for processing the business partner in the area menu under Accounting ->Bank Applications -> Risk Analysis -> Default Risk and Limit System -> Master Data -> BusinessPartner -> Edit Business Partner.

31.8 IS-B-SA Strategy Analyzer

31.8.1 IS-B-SA-ALM Asset/Liability Management

31.8.1.1 Creation and Valuation of Eonia Swaps (Enhanced)

Use

As of SAP R/3 Enterprise Financial Services 1.10 (EA-FINSERV 110) in Risk Management youcan process compound swaps and eonia swaps, for which the payment of capitalized interest does notoccur at the same time as the payment of the nominal amount.

See also Compound Swap and Eonia Swap


To be able to create and value compound swaps and eonia swaps in Risk Management, you have to assignin Customizing the following cash flow indicators to flow types of contract type 6:

o Interest capitalization (sample Customizing 1150) has cash flow indicator 9

o Payment of capitalized interest (sample Customizing 1150) has cash flow indicator 2

To make these settings choose the activity Define Assignment Manually under SAP Banking -> StrategicEnterprise Management (SEM) -> Risk Analysis -> Common Settings for Market risk and ALM ->Valuation -> Cash Flow Indicator and Fictitious Cash Flow Indicator -> Transactions with Flow Types:Assign CF Indicator and Fictitious CF Indicator or Corporate Finance Management -> Market RiskAnalyzer-> Assign Cash Flow Indicator to Flow Types.

31.8.1.2 Interest Result Evaluation for Forward Exchange Transactions

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(Changed)

Use

As of SAP R/3 Enterprise Financial Services 1.10 (EA-FINSERV 110) you can use the ALMvaluation type to control how forward exchange transactions are displayed in gap analysis. You have thefollowing options:

o NPV displayIn the position evaluations, the nominal volume discounted to the contract date is shown.

o Forward exchange transactions for hedging capital positionsIn the position evaluations, forward exchange transactions are shown with the nominal capital andan interest rate of zero. In the interest result evaluation, although a position is shown, the interestresult is not shown.

o Forward exchange transactions for hedging interest paymentsForward exchange transactions are not shown in the position evaluations. In the interest resultevaluation, an entry is made both for the interest revenue of the interest position and for the interestexpense of the position. These values are shown for the relevant period.

In the ALM valuation type, set the balance sheet volume in interest result indicator to off-balance sheettransactions not included. This means that in the interest result evaluation for forward exchangetransactions the system displays only the accrued interest revenue/expense, and not the volume.


You make the settings described above in the ALM valuation type in the field Forward Forex Trans. Youcan also make this setting specific to the valuation rule.

31.8.1.3 Spreads in the Cash Flow Evaluation (Changed)

Use

As of SAP R/3 Enterprise Financial Services 1.10 (EA-FINSERV 110) you can display spreads inthe cash flow evaluation in ALM simulation independently of the setting you have made for the spreadprocessing indicator in the ALM valuation type. This is useful because premiums/discounts on variablerate items contain a net present value risk.

31.8.1.4 Complete Balance Sheet and Profit/Loss Simulation (new)

Use

Capital planning is of major importance to banks, and requires full financial data to achieve accurateforecasting. As of SAP R/3 Enterprise Financial Services 1.10 (EA-FINSERV 110), Asset/LiabilityManagement (ALM) contains functions to handle non-interest-bearing profit and loss figures (forexample, equipment) and projected future balances in simulation reports.

The new ALM model enables you to balance the complete balance sheet (including the full P&L and

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retained earnings) by making automatic postings to a balancing account. The balancing account alsoserves as a goodness of fit indicator in the planning process. If a forecast balancing account becomesunusually large, it indicates that the two sides of the forecast balance sheet do not balance. Thisemphasizes the dynamics of the balance sheet and lets the user analyze what-if scenarios.

These enhancements in ALM allow banks to obtain a comprehensive view of the balance sheet forforecasting and analysis.


Additional Customizing is needed for the ALM enhancements. Follow the menu path in IMG:

SAP Banking -> Strategic Enterprise Management (SEM) -> Risk Analysis -> Asset/LiabilityManagement (ALM).

Customize the following items:

o Balancing Account

o Equity Account

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