Introduction to SAP Funding Management
SAP Funding Management is a component of the SAP for Banking solution architecture and is used to fund assets. It is the goal of this application component to support funding processes. SAP Funding Management supports the structuring (pre-closing) as well as the processing (post-closing) of funding transactions.
Two different scenarios are supported:
This scenario consists of the funding of asset pools with one or more investors SAP Funding Management supports pool structuring by providing extensive selection and sampling functions. To manage the investors participating in the consortium, the creation and maintenance of investor contracts based on flexible conditions is provided. SAP Funding Management also ensures the aggregation and distribution of the funded cash flows for the asset pool. This gives you the option of distributing due payments automatically of manually for optimum control of payment distribution. A series of provided business transactions lets you manage the entire life cycle of a syndication.
For example, the business transactions replenishment and asset buyback as well as loss allocation are offered to investors.
This scenario supports the securitization of asset pools. For this purpose, SAP Funding Management provides an interface for the integration of each SPV. This permits you to tender the assets to be securitized in the form of an SPV sales file. The assets bought by the SAP are read on file basis and lead to the corresponding structuring of the asset pool of the funding transaction. It is valid for both scenarios that the underlying funding conditions are defined by creating a funding program. This includes, for example, the determination of the permitted asset class (such as loan contracts), entering the maximum funding amount and specifying the maximum funding period. On the basis of a funding program, a concrete funding occurs is specified in the form of a funding transaction. All parameters for a syndication or securitization are defined in detail with a funding transaction.
This includes the specification of the cash flow components to be funded (for example, repayment and interest), structuring the asset pool as well as details specifications for payment distribution (automatic or manual payments). To enable you to monitor the complete term phase of a funding transaction, the monitoring of events of the contract managing systems and the execution of internal monitoring functions (triggers) are provided. You can make the settings for these monitoring functions individually for each funding transaction.
The configuration of SAP Funding Management is described below:
This configuration guide is structured largely according to this process flow. First the basic settings are described, followed by the descriptions for the configuration of funding programs and funding transactions. There are separate sections for setting up investor contracts for the "syndication" scenario and for defining the parameters for payment distribution. The conclusion of the implementation guide consists of a description of monitoring settings and options for the modification-free enhancement of Funding Management.
Related: Funds Management (FI-FM)
1. Basic Settings
1.1 Number Ranges
1.2 Specify Logging Settings
1.3 Define RFC Systems
2. Funding Portfolio
2.1 Creating Funding Portfolios
2.2 Assign Funding Categories
2.3 Assign Interest Rates
3. Funding Types
3.1 Define Funding Types
3.2 Assign Business Transaction
3.3 Assign Product Types
4. Funding Transaction
4.1 Define Key Figures
5. Cash Flows
5.1 Define Internal Cash Flow Components
5.2 Assign Cash Flow Category
5.3 Define Mapping of Cash Flow Components
Related: Funds Flow Statement vs Cash Flow Statement
6. Investor Contracts
6.1 Define Intervals Tolerances
6.2 Assigning Flow Types and Conditions to Contract Types
6.3 Defining Flow Type for Application Function
6.4 Define Discount
7.1 Define Events
7.2 Define Event Categories
7.3 Define Handling Notes
7.4 Assign Events and Handling Notes
8. Customer-Specific Enhancement Options (BAdI)
8.1 Application Logic
8.2 Inbound interfaces
8.3 Outbound interfaces
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