Bank Communication Management

Agenda

1 BCM Process Overview

2 Electronic Bank Statement

3 Process Simulation on SAP

3 Questions
What does this have to do with Bank Communication Management

2
Better Communication / Monitoring – Abstract

There are many different ways to

integrate payments with your banking
partners. This presentation will provide
you with an opportunity to better
understand your choices in relation to
bank communication; you will also get
new ideas on how SAP functionality can
make this process easier.

3
Better Communication / Monitoring – Key Takeaways

• Hear four options for how companies typically

integrate bank communication

• Understand how SAP’s bank communication

module can be used for payment approvals and
monitoring

• See how cash balance tracking and bank statement

monitoring can be implemented to track missing
statements or reconciliation problems in SAP

4
Better Communication / Monitoring – Target Customer Group

• Corporations implementing AP or AR payments functionality in their

SAP systems.

• Those planning to implement interfaces with their banking partners.

• Anyone implementing electronic bank statements for monitoring in their

system.

5
 Payments Approval Process
What are the primary components in creating a payment process?
Manual
payment Manual entry
Manual
clearing Approval Automated of payments
payment file
(F-53) processes payment file on bank
transfer
on bank transfer platform
platforms

Appr.process
oval
Confirmations sses
Review
in SAP Generating P
Generating payment
Paymin
ent
proposals payments Confirmations proposals
(F110) (F110) emails (F110)

© 2016 | Ace, LLC 9

Payments Approval Process
Option 1

Manual BBank Bank

Online
Payment PPortal Approval
al
Confirmations
Clearing Eentry Processs

10
Payments Approval Process
Option 2

Payment Payment
P payment
P MANUAL L Receive Email
Proposal proposal
P execution nsfer
File Transf Confirmations
E
review
R to Bank

© 2016 | Ace, LLC 11

Payments Approval Process
Option 3

AUTOMATION
ED
Payment Payment
P Payment
P Email
Proposal proposal
P execution
E File Transfer Confirmations
review
R to Bank

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Payments Approval Process

Option 4

AUTOMATION
AUTO ED
Payment
P
Payment proposal
P Payment
P nt Approvals in File Transfer Automated
F
Proposal review
R execution
E ion SAP (BCM) confirmations
tot Bank

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How do I design a better process?

14
BCM & Connectivity Overview
Option 1

confirmations

Payments SAP Bank Middleware Bank

Communication
Manager

15
BCM & Connectivity Overview
Option 2

confirmations confirmations

Payments SAP Bank Middleware SWIFT Bank

Communication
Manager

16
BCM & Connectivity Overview
Option 3

confirmations

Payments SAP Bank Manual Bank

Communication Transfer
Manager

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Bank Communication Management

An SAP module used for managing payments and bank statements.

Can be used standalone or in conjunction with middleware such as PI.

Payment Management

• Payment process approvals using workflow

• File transmission status
• Payment status

Bank Statements

• Bank statement monitoring

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Payment Approvals Process

Decisions for approvals process:

• How many approvers are typically required for payments?

• Do you have limits that guide the number of approvers required?
• Should you track digital signatures?
• What is necessary for audits?
• Can you have an automated transmission?

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Payment Approvals Process – continued…

• Payment batches are created for approval

• Batches are created by rules – dictate how

many approvals are required

• Screenshots show a two-person approval

process

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Payment Approvals Process – continued…

Batches can be approved or rejected

Digital signatures can be set up to require

entry of SAP password in order to approve a
batch. This information is logged in SAP and
available for future use.

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Payment approvals process - continued

A different user must perform the final approval.

Once the final approval is complete, a payment file will be created.

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Payment Approvals Process – continued

23
File Transmission Status

BCM has ability to receive transmission confirmations and update status

for files in an easy to use monitor.

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File Transmission Status

Ways to update status:

• CollectivePaymentOrderNotification service

• Confirmations Program –
RBNK_IMPORT_PAYM_STATUS_REPORT

You can track the time between various statuses to trigger

early warning alerts if too much time has passed between
statuses. This allows for proactive payment monitoring.

25
Comparison Between XML Payment File & Confirmation File

XML Payment File – XML Confirmation file with payment

pain.002.001.03 statuses- pain.001.001.03

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Payment Status Report

SAP provides a standard

program that can be used to
read XML confirmation files
and update payment status
in BCM.

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Payment Status Report

Functions and features:

• Reads from Logical Directory

• Upon successfully processing confirmation file, it is moved into an

archive directory

• Any files that are not successfully processed are moved into an error
directory

• Provides the ability for the customer to use a standard transformation for
the XML file or create a custom one for use by program

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Who Cares About Payment Status Anyway?

Make file confirmations a routine business process that is transparent to

everyone, instead of a function existing in only IT
IT
• Moves IT from getting the immediate phone calls when there is a
question on transmission
Business
• Statuses are transparent and loaded into SAP
• Allows for a proactive business response
Both
• Allows for faster troubleshooting process by having statuses at each step

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Consideration for Payment Automation

Completely Manual

Work on foundation first- do you have a solid master design and processes to
support the automation?
Remember Garbage In Garbage out (GIGO) principle:
Don’t automate a bad process. What kind of problems lurk?
• Inconsistent usage of the same fields – different entities
using the same fields for different purposes
• Commandeered fields in vendor master, bank master or
invoice documents
Always keep a backup plan of entering payments on bank portals.

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 Electronic Bank Statement Overview

• It is an electronic document sent by the bank which gives details of the

transactions done by the account holder.
• The electronic document can be remitted by the bank in the following
formats SWIFT, Multicash, BAI etc.

• The statement is used in SAP to do an Automatic Reconciliation.

• The statement is uploaded in SAP and it clears the various Bank Clearing
accounts such as the Check out, Check in account to the main bank
account.
 Electronic Bank Statement Process Flow Chart

Receiving electronic bank statement View Bank Statement using FF67

(Format MT940) from Main bank GL Balances Using FBL3N

View Bank
SAP Customer Uploading into
Statement or
Main Bank the System
(Company) General Ledger
(SAP)
Balances

Upload using T.Code: FF_5

• Steps for Data Process

1.Creation of Customer/Vendor Invoice

2.Post Customer/Vendor Payments
3.Import Electronic Bank Statement (FF.5)
4.Print/Display Bank Statement (FF.6)
5.Check Cleared Documents (FBL3N)
6.Check of Bank Statement (FF67)
• EBS upload file Format
Statement Number

• {1:F01SABBSABBAXXX0000000000}{2:I940DELLXXXXN}{4:
• :20:12345678910 Opening Balance is 100000
• :25:5144885678
• :28C:2 Received payment from the customer

• :60F:D120912SAR100000 50000 Rupees

• :61:1209110912CR50000,00NTRF1234//5
• :86:FT DELL
• :62F:D120911SAR150000
• -} Closing Balance
Closing Balance= Opening Balance(Last statement closing Balance + Payment Received)
=100000+50000=150000
Questions??

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