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SAP LOANS MANAGEMENT COMPLETELY
INTEGRATED FOR PUBLIC SECTORRobyne Lyons / Terri Albright
Abhijit Umbarkar
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LEARNING POINTS
Key drivers to implement SAP Loans Management
Implementation approach and timeline
Best practices
Solution highlights
Testing strategy
Conversion strategy
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KEY DRIVERS
One system for all agencies and all programs Integrated with SAP Financials and BW
Enhanced functionality and flexibility to support various
loans processes
Ability to generate electronic payment files Standardize processes across agencies and programs
Ability to generate Amortization Schedules
Provide portal for borrowers to access current loan
information
Have direct interface with Trustee Banks
Sunset legacy systems
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IMPLEMENTATION APPROACH AND
TIMELINE
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BEST PRACTICES
Standardize processes across all agencies Minimize paper trail
Encourage borrowers to accept and repay using
electronic form of payments
GRC compliance Centralized business partner
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SOLUTION HIGHLIGHTS
Loans origination to Loan completion in SAP CML Complete integration with SAP Public Sector Financials
GRC compliant
Standard SAP workflow for CML
Synchronization of business partners and customers Automation of monthly invoicing and incoming ACH
payments
DOCFINITY for attachments within SAP CML
SAP BW for all reporting
Custom forms for correspondence
Standard SAP conversion tools for CML (EDT)
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The borrowersubmits an
application
The agency analyst
reviews the
application and
submits to the
board for approval
The agencyanalyst converts
the loan
application to an
offer upon board
approval
Borrower acceptsthe offer . Upon
legal and
comptroller
approval the loan
offer becomes a
contract
Funds aredisbursed
Loan servicing
SOLUTION HIGHLIGHTS
Process Overview
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Business Partner Loan Origination
Loan Disbursements
Invoicing and Processing Incoming Payments
Business Operations
Dunning
Correspondence & Reporting
SOLUTION HIGHLIGHTS
Key Processes Covered
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Enter Account
Assignment
Details and
Update Contract
Status to 30CML
FI
FM
CO
Trigger
Disbursement
Post Invoice
Disburse Loan
Service Loan
Receive Incoming
Payment
Service Loan
Adjustments/Pay-
Off
Create Funds
Commitment with
GL Account, Fund
and Cost Object(s)
Post Invoice for
Loans
Disbursementwith Fund and
Cost Object(s)
Liquidate Funds
Commitment &
Post actual
expensewith
same Act Asst.
Post Loans
Disbursement
OutgoingPayment with
Fund
Post actual
expensewith Cost
Elements, Cost
Object(s) and
Fund
Post Incoming
Payment with
Fund and Cost
Object(s)
Post Adjustment
with Fund andCost Object(s)
Post Revenue
with GL Account,
Fund and Cost
Object(s)
Post Adjustment
GL Account, Fund
and Cost Object(s)
Post Revenue
with Cost
Elements, Cost
Object(s) and
Fund
Post Adjustment
with Cost
Elements, Cost
Object(s) and
Fund
Post Planned
Records (Billing)
Post Customer
InvoicewithFund / CC
AR Invoice Posted
but washed out
with same FM Act
Asst.
SOLUTION HIGHLIGHTS
Process Integration
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SOLUTION HIGHLIGHTS
Public Sector Integration
Create additional tab on Loan Master for FM/GM/COaccount assignments
Automatically create Funds Commitments based on the
account assignments on the FM Tab on loans master
Reference funds commitments on all expense postingsform Loans to get the FM/GM/CO account assignments
on the expense postings
Use FM derive for getting FM data on specific postings
Apply SAP Notes that were specifically created toachieve FM and SPL integration for specific Public
Sector requirements
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Loan Master Data
Condition Header
Information entered here
applies to all the conditions
Condition Items
Information
entered here
only applies to
the line on which
it is entered
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FM/CO Account Assignment Tab
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SOLUTION HIGHLIGHTS
Disbursements.
Choice of disbursement
funding from FM Tab
Automatic liquidation of
commitments at the time of
disbursements
Daily scheduled automated
payment program F110 to
make disbursements
Exception Processing
Expenditure Adjustments
Payments Returned
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SOLUTION HIGHLIGHTS
Invoicing and Incoming Payments.
Automatic creation of monthly invoicesscheduledbatch job
Automatic creation of ACH debit filesscheduled batch
Job
Check deposits using SAP Cash Management Exception Processing using Payment Post Processing
Short Payments
Over Payments
Pre-Payments
Principal Reductions
Checks applied to wrong contract or borrower
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SOLUTION HIGHLIGHTS
Business Operations.
Single Postings Payoff
Charges
Waivers and Write-Offs
Capitalization / Deferral
Interest on Arrears
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SOLUTION HIGHLIGHTS
BADi Implementations.
FVD_LOAN_POST FVD_DISBURSEMENT
FVD_BUS_OP
User Exit 14
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SOLUTION HIGHLIGHTS
GRC / Security Roles.
Agency Loan Analyst Agency Loan Reviewer
Comptroller Loan Analyst
Comptroller Reviewer
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Testing Strategy
Plan
Execute
Monitor
Close
Unit Testing
Integration Testing2 rounds
User Acceptance Testing
Conversion Post Processing
Conv. Testing 1
Conv. Testing ..
Conv. Testing 6
Mock Cut-Over
Final Conversion
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Conversion Scope
PENNVEST
PEMA
PENNDOT
BusinessPartners
Loan MasterLoan
TransactionsLoan
Commitments
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RETURN ON INVESTMENT
Before Agencies with multiple disparate systems
Pay maintenance on non-SAP systems
Maintain multiple interfaces into SAP
After:
Agencies to use SAP Loans Management.
Eliminate maintenance and support for non-SAP Loan Systems
Enhanced functionality
Integrated with SAP Financials and Funds Management
Improved user experience
Standardization of processes
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KEY LEARNINGS
Plan for SAP Loans Management training for the projectteam
Get the right consultant for Loans Management and USPublic Sector Integration specialist
Dont underestimate data conversion efforts
Focus on the validation process for conversionsincluding the validation of future cash flow
Freeze the requirements early on and get the buy-infrom key stakeholders
Identify the pieces of the process that can be handledby the standard functionality and parts where youwould need custom development
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Applications of the solution within Public
Sector
Employee Loans Student Loans
Loans to Citizens / Businesses for various programs
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Contact information
Robyne Lyons : roblyons@pa.gov Terri Albright: tealbright@pa.gov
Abhijit Umbarkar:
abhijit.umbarkar@thesolutionsco.com
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THANK YOU FOR PARTICIPATING
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SESSION CODE: 3311
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