3311 SAP Loans Management Completely Integrated for Public Sector
Transcript of 3311 SAP Loans Management Completely Integrated for Public Sector
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SAP LOANS MANAGEMENT COMPLETELY
INTEGRATED FOR PUBLIC SECTOR Robyne 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 30 C M L
F I
F M
C O
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
expense with
same Act Asst.
Post Loans
Disbursement –
OutgoingPayment with
Fund
Post actual
expense with 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
Invoice –withFund / 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 invoices – scheduledbatch job
Automatic creation of ACH debit files – scheduled 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 Testing – 2 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
Don’t 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 : [email protected] Terri Albright: [email protected]
Abhijit Umbarkar:
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SESSION CODE: 3311
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