demand lines of credit and overdrafts in ERP

[former_member1331557]

Dear Ralf Fischer

Can you give me some hints on how demand lines of credit and overdraft in ERP are processed?

Yours faithfully, Tatyana

Edited by: Tatiana Nebukina on Sep 23, 2008 12:22 PM

[Former Member]

Dear Tatiana,

thanks for asking.

Since there is always a risk of a single person not being available,

I recommend you to address future questions to the entire forum audience of contributors.

To answer your question, I start with narrowing your questions down to some essential facts.

Can you confirm, that

1. by application, you're speaking about the Banking enhancement package to ERP 6.0

or to other ERP or R/3 Enterprise releases,

SAP Loans Management (formerly called CML) and

SAP Deposits (formerly called BCA)

OR

do you speak about the release of banking services

with its components SAP Deposits Management and Master Contract Management

2. by bank product, "demand lines of credits" are lending products, and "overdrafts" are current account products

3. by definition, a "demand line of credit" is a facility product for which

3.1. the customer can decide

a. when

b. how often

c. how much

d. in which currency (as an option extending the scope of single-currency facility)

e. using which drawing product (financing trade, short-term lending, overdrafts, disbursements)

3.2. the bank can decide when to demand the money back by cancelling the line

3.3. facility meaning that multiple entities of the customer can use the shared limit for multiple contracts

4. by definition, an "overdraft" is an equivalent product to a facility

3.1. with the same options for the customer and the bank except

3.2. the main difference being that an overdraft line is for ONE account exactly

Having aligned on this, the answers are the following:

Speaking about

1. the standard scope for SAP Loans Management:

demand line of credit are available not in standard, but in an project-based enhancement.

In order to clarify whether the enhancement is needed and

how to commercially license this project-based enhancement and receive,

please touch base with SAP Ukraine, banking unit.

2. the standard scope for SAP Deposits:

overdraft is available in standard

Speaking instead about

1. the standard scope for SAP Deposits Management:

overdraft is available in standard

2. the standard scope for SAP Deposits Management:

demand line of credit are available in standard,

yet the standard scope currently allows to connect to participating

a. current accounts managed in Deposits Management

b. external contracts managed in non-SAP transactional systems.

To connect to loan contracts managed in Deposits Management,

this takes a due diligence and a future release statement.

Hope this answer helps you, do not hesitate to ask more,

regards Ralf

[former_member1331557]

Dear Ralf

I am grateful to you for the substantial answer .

I confirm that it is the Banking enhancement package to ERP 6.0 .

It is interesting what Add-on there is in the application CML for service demand lines of credits and overdrafts. Whether there is it now? What its realisation?

I have understood that there is a standard decision in BCA.

regards Tatyana.

[Former Member]

Dear Tatiana,

I recommend to move over to email conversation about the project-specific details of your request, as this is up to the local SAP office to specify.

For general statements, I hope I can finally answer your question with the definite statement that

1. by reasons of generally accepted banking business, overdrafts do not belong to loans contracts, but to deposits/accounts.

So there is no need to discuss those within SAP Loans Management,

The available solution in SAP Deposits is covering the requirements from banks also in Ukraine.

2. only a customer-project-specific analysis can clarify the requirements that can result in a request for the customer-project-based enhancement, which is not available for re-use out-of-the-box, but needs a study compared to scope and feasibility.

Your local SAP office in Kiev can help you sorting the steps.

If there are questions left open, they will be answered together with the solution consulting hub.

kind regards Ralf

[former_member1331557]

Dear Ralf

At present me the banking sector a little interests.

I need to know, how demand lines of credit and overdrafts at the simple enterprise, for example in retailing are processed. (Not banking sector ) Management of loans allows to operate credits and in trading business.

And how demand lines of credit and overdrafts at the simple enterprise are processed?

Yours faithfully, Tatyana

[Former Member]

Dear Tatiana,

I am afraid I am not enough into loans managament for ERP and non-banking financials to answer that question from first hand experience.

It hope it will be not long and complicated for you to find out, but I am not the right person to ask financials-orineted, non-banking loans topics.

Please can you reach out to SAP Ukraine or more financials-related experts in this forum to sort this, I can only recommend you to look into the area of SAP Help about "Credit Management" in the area of "Financial Supply Chain Management".

http://help.sap.com/saphelp_erp60_sp/helpdata/en/20/8ad8fa96494f16a8db9110234c855b/frameset.htm

http://help.sap.com/saphelp_erp60_sp/helpdata/en/42/cbf026fb0a136ae10000000a1553f7/content.htm

http://help.sap.com/saphelp_erp60_sp/helpdata/en/7e/80330913f349f6bcb6a512c0d82250/content.htm

Please validate if this fits your needs, Ralf