GAP ANALYSIS

[Former Member]

Hi Experts,

Can any one of u be kind enough to share with me some real time gap analysis scenarios with complete solution.

Thanks in advance.

cheers

pathfinder

[Former Member · Accepted solution]

Hi,

GAP Analysis

A through gap analysis will identify the gaps between how the business operates ad its needs against what the package can can't do. For each gap there will be one of three outcomes which must be recorded and actioned, GAP must be closed and customised software can be developed close the gap, GAP must be closed but software cannot be written therefore a workaround is required, GAP does not need to be closed.

In simple terms: Gap means small cracks. In SAP world. In information technology, gap analysis is the study of the differences between two different information systems or applications( ex; existing system or legacy system with Client and new is SAP), often for the purpose of determining how to get from one state to a new state. A gap is sometimes spoken of as "the space between where we are and where we want to be." Gap analysis is undertaken as a means of bridging that space.

Actual gap analysis is time consuming and it plays vital role in blue print stage

Reward points if it helps

With regards

Rajesh

[Former Member]

Hi,

Gap Analysis

Use

In gap analysis position and maturity volumes, cash flows, and liquidities are analyzed on key dates or in periods. The gap positions, interest rate risk, currency risk, and liquidity risk that are disclosed in this way are then displayed.

For interest rate risk, you are able to highlight, for example, the fixed interest rate gap position in a maturity band for any currency by means of the following template:

In the closed fixed-rate block, there is no risk because the product interest rates of the counterparties are not affected by changes in the market interest rate. Hence the closed interest result is not affected. In the closed variable-rate block, it is assumed that the changes to the interest rate of the items, which result from changes in the market interest rate, affect both sides, meaning that the final net interest income is unchanged in this block too.

Therefore, the actual risk is in the area of the gap; in the area of the asset-side gap in this example. If, for example, the interest calculated for the variable-rate liabilities increases as a result of increases in the market interest rate, then you expect a decrease in the net interest income because the lending terms cannot be adjusted in line with the changes in the market rate due to the fixed-rate agreement.

Features

Gap analysis enables you to do the following:

· Depict the interest rate risk as a possible negative deviation of the net interest income per period from the expected net interest income per period.

· Depict key date-based and period-based position volumes, or key date-based maturity volumes in relation to their interest commitment or capital commitment, fixed-rate cash flows, and incoming payments and disbursements of liquidity.

· Depict gap positions as a comparison of the volumes of asset and liability positions, and maturity volumes, as well as incoming payments and disbursements of cash flows or liquidity flows.

· Analyze positions, maturity, and cash flows from fixed-rate items for any subportfolio on a daily basis.

· Use scenarios to depict the net interest income for old transactions.

· Use due date scenarios and forwards (for example, floaters, the variable side of swaps and FRAs) to take into account variable items that do not have fixed-rate periods (demand deposits and savings deposits).

· Use due date scenarios to take into account non-interest items that do not have a fixed-rate period (for example, equity, provisions, land and buildings).

· Take into account optional-like interest instruments with the underlying or delta-weighted underlying (for example, forward swaps for swaptions, fictitious bonds for OTC interest options, options on futures).

· Display results distributed over time periods, which can be subdivided into any time unit, for example, day, month, quarter, half-year and year.

Hope this gives you some clarity, reward points if helpful.

Regards

Srikanth.A

[Former Member]

Hi ,

''GAP'' ANALYSIS by name it self defines that it is the differnece between what can be configured in standard SAP and the requirement of the client that cannot be configured by standard SAP.

It comes in the business blueprint phase of ASAP methodlogy and GAPS are fulfilled in the realisation phase.

GAPS are fulfilled by the help of user exits and enhancements.

I can give two examples for your understanding.

1) one of my client want commodities trading process in his implementation which is not available in standard SAP.this can bre done bu using uesr exits.

2)Also he want to add broker as partner function and some condition type ZBRO as cond type ..which can be done based on his requirement and not in standard sap.

hope you can understand...

''Reward points if it helps...''.

Regards,

Ramesh

[Former Member]

hi Ramesh ,

thanx for help. Can u pls explain in short how u solve this two issues

full points guaranteed.

Thnx in advance,

Pathfinder

[Former Member]

Hi Rajesh,

Thnx a lot for ur reply. Yeah, I do understand now what gap analysis means, but if u can provide me with couple of real time examples with solutions then that will help me a lot.

Thank you.

regards,

pathfinder