SAP IS-Banking -Brief overview

The Banking services from SAP comprise both operational and analytical banking applications. The various applications can communicate with one another by means of Enterprise Services.

Banking services from SAP consist of the following components:
1. Account Management (FS-AM): The Account Management system is responsible for the management and processing of the statutory reporting figures. It provides information concerning the receivables and payables between a bank and third parties. The accounts, balances, and payment items are managed in the Account Management system. The balances are not managed on a currency basis that is, no conversion takes place. Postings can be made in a currency that differs from the account currency. In this case, currency conversion takes place and foreign exchange item postings can be generated. The positions form the basis for external financial reporting, meaning that the contract and turnover data stored here represents the data basis for the creation of the balance sheet. One key processing function of the Account Management system involves the interest settlement and charge calculation for the accounts.

This component comprises the functions you need in banking for the administration of customer accounts. Together with Payment Transactions, Securities Settlement and Securities Account Management, it is the central component of Transaction Banking which you can use to manage account contracts, account turnovers or account settlements. A special feature of the Account Management system is the integration of card management, since in many respects the administration of cards, such as credit cards or customer cards, is similar to the administration of customer accounts.


2. Master Contract Management (FS-MCM): This application component bundles contracts into master contracts and provides special processes and functions for these master contracts. List of processes:
* Communication Between Logical Systems
* Master Contract
* Product Version Change
* Order Management
* Overdraft Protection
* Combined Settlement
* Payment Distribution and Monitoring
* Effective Cash Pooling
* Facilities
* Postprocessing Office
* Financial Conditions in Master Contract Management
* Correspondence in Master Contract Management

3. Posting Control Office (FS-PCO-AM):
his component supports rational processing of mass payment transactions in the Account Management (FS-AM) system. You can use the Posting Control Office for the following purposes:

● For manual and automatic further processing when the Account Management system encounters posting problems when posting payment items.

● For manual further processing if the creation of pre-notes in Account Management leads to insufficient funds on the account.

● For further manual processing if Account Management identifies errors during processing of payment distribution items, such as incorrect Customizing settings or contrary settings in the loan account.

4. Collateral Management (FS-CMS):
SAP Collateral Management is a comprehensive solution for maintaining, administration and monitoring the usage of collaterals and also for adherence to reporting standards such as the Basel II framework. The solution is designed around the three principal collateral entities, namely the collateral objects, collateral agreements and receivables.

5. Business Partner for Financial Services (FS-BP): The SAP Business Partner for Financial Services (SAP BP-FS) is the SAP application for saving and managing all customer information.

6. Foundation (FS-FND): Foundation forms the technical basis for the banking services. It consists of the following reusable service components that are available to other components of the banking services:

* Agent Framework (FS-FND-AF)
* Correspondence (FS-FND-COR)
* Hierarchical Derivation Service (FS-FND-DER)
* Cash Flow Calculator (FS-FND-FCL)
* Cross Lock Management (FS-FND-LCK)
* Market Data (FS-FND-MKD)
* Parallel Processing and Job Control (FS-FND-PPJ)
* Pricing (FS-FND-PRI)
* Process Step Journal (FS-FND-PSJ)

7. Bank Analyzer (FS-BA):
Bank Analyzer supports risk and return management by calculating, measuring, and analyzing financial products. The structure of Bank Analyzer is based on the Integrated Finance and Risk Architecture (IFRA) and meets today's requirements (International Accounting Standards (IAS), Basel II, Risk Adjusted Performance Measurement, and Sarbanes-Oxley) for financial products.