SAP Financial Services Network
Transcript of SAP Financial Services Network
SAP Financial Services Network
Introduction
April 2013
© 2013 SAP AG. All rights reserved. 2 SCN
Treasury Challenges and the Banking Relationship
Multibank relationship implies bank specific
content in SAP ERP
Long Implementation Projects
Needs separate on-premise integration
broker involving costs and special expertise
to maintain
Bank specific payment status and
statements, manually uploaded to SAP ERP
Poor cash management due to lack of
visibility
Lack of remittance information
Many payment rejections with incr.
customer support costs
Poor reconciliation .. Or issues etc..
Bank independent solution
Simplified connectivity
Improved visibility and centralization
Better reconciliation
Efficient straight through processing
Non-intrusive as much as possible
Evolving and growing technology to
support innovative new services
Multi-channel across multiple devices
Challenges Needs
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Trends, Challenges & Pain Points Challenges – Technological Pain Points
Lack of transaction visibility and
control
Lack of agility
Multiple failure points and/or
complex infrastructures
Implementation, maintenance and
“expertise” costs
Difficulties in managing working
capital across multiple banking
relationships
Banks Corporate Treasury, AP
& AR Departments
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A complete solution needs to have interoperability, scalability, standardization
and process integration all together as part of the business’ core processes
Corporates
demand enhanced services
to facilitate treasury
management
interactions with
their banks.
Banks demand simplified approach
to electronic service
development,
deployment and
delivery
Corporate Banking Supply Chain Partnership
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End-to-end process efficiency
Lower TCO
End-to-end compliance
Process and access control
Channel and device agnostic
Multi-bank connectivity through one channel
Easy ERP-integration
Quick response to regulatory change
Customer driven ease of adoption
Flexibility to change without business disruption
On-the-fly analytics
Flexible reporting on profitability, risk, growth
Immediate access
Key Features of an Effective Corporate Services Solution
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SAP FSN dramatically reduces costs and increases
efficiency of financial processes for the corporate
SAP Financial Services Network is a new innovative on-demand solution designed to
simplify electronic interaction with financial institutions. The network supports multi-
bank routing, multi-format documents, on-boarding, provisioning, management, and
monitoring capabilities.
• No individual custom solution per bank
• No multi-connection for multi-banks
• No additional hardware or 3rd party
software
• No additional training needed
• No manual updates of settlement,
reports to ERP environment
Deep integration
into your business
processes
Reduced
operational risk and
better visibility
Faster time to
achieve results
Low TCO Solution
Financial Services Network
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Why a Financial Services Network from SAP? Market Penetration
186,000 SAP Corporate Customers
730,000 SAP Ariba Buyers & Suppliers
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Value For Banks
Win new clients and offer new
services into a vast base of SAP
corporates:
• Faster corporate growth, faster time to
revenue
• Lower cost of doing business via single
integration point
• “Pay-as-you-go” subscription model
• Extension of SAP, higher win rates
New
business
Lower cost
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Value For Corporates
Integrates AP, AR and Treasury
processes seamlessly with financial
provider services.
• No new hardware or software footprint, extends
existing SAP resources
• Rapid Deployment Solution for ERP
configuration
• Efficient cash recognition and reconciliation
• Multi-bank solution, delivering risk mitigation
and business agility
• “Pay-as-you-go” subscription model Cost
© 2013 SAP AG. All rights reserved. 10 SCN
Corporates
SAP Financial Services Network Deliver benefits across all aspects of the relationship
Financial Services Providers e.g. Banks, Credit Cards, Insurance
sF
TP
SA
P E
RP
FS
N
Connecto
r
SA
P E
RP
• Values Services developed by Banks and delivered to corporates
• Enabling Standard industry messaging support
• Leveraging Business Networks and Rapid services deployment
• Trusted and Secure in the SAP Cloud
• Remotely monitored and managed at a Low TCO
SAP HANA Cloud Platform
SAP Cloud
Financial Services Network
Ca
sh
Ma
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ge
me
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Reco
ncili
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Monitro
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&
Ale
rtin
g
Oth
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Va
lue
Se
rvic
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SAP HANA Cloud Integration
Su
pp
ly C
hain
F
inan
cin
g
Re
mitta
nce
WS
RM
or
sF
TP
Back O
ffic
e S
yste
ms
Direct
SAP HANA Cloud Applications
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SAP Financial Services Network On boarding in three easy steps
On-board
Agree to join
Define services
On-board to network
Activate
Identify FSN Member
Activate connection
Test E2E Connectivity
Operate
Run payment processes
Monitor Services
Administrate Services
1 2 3
Corporates
sF
TP
SA
P E
RP
FS
N
Connecto
r
SA
P E
RP
SAP Cloud
Financial Services Network
Ca
sh
Ma
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ge
me
nt
Re
con
cili
ation
Monitro
ing
&
Ale
rtin
g
Oth
er
Va
lue
Se
rvic
es
Su
pp
ly C
hain
F
inan
cin
g
Re
mitta
nce
WS
RM
or
sF
TP
Back O
ffic
e S
yste
ms
Financial Services Providers e.g. Banks, Credit Cards, Insurance
SAP HANA Cloud Platform
SAP HANA Cloud Integration
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Multiple Layers of Security
• SAP Cloud. The network is based on a cloud owned and operated by SAP. Separation of data
and processing by each bank or corporate participant, digital signing and encryption of data
ensure integrity, security and authentication are complete. Membership and connectivity is not
open to public.
• Separation of processing and data. Each FSN
participant has their own virtual machine or “tenant” in
the Financial Services Network for processing and
their own partition (with unique encryption) for data
storage.
• Multiple layer of encryption and signing are
possible.
• Layer One: Transport encryption such as in SSL
or SSH
• Layer Two: Content signature and encryption
using PKCS#7 or (in future) PGP
• Layer Three: Data element level using corporate
or bank keys as appropriate
SAP Financial Services Network
Corporate
Tenant Bank
Tenant
BANK COPORATE
Bank
Payment
Engine
Corp Banking
System
SAP FSN
Payment Process Status Update
Payment
Customer Installation
SAP ERP
Accounting
Payments
Statement Reconciliation
Ge
neric FSN
Co
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ector SA
P E
RP
FSN
Co
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ecto
r
Payment Status #87 $1,000 processed
Account
Processing
Accounting Entries
Payment Status #88 $1,500 processed
Statement #87 $1,000 processed #88 $1,500 processed
FSN Payment Run Scenario
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SAP FSN
Scenario 1: End-to-End AP payments flow out-of-the-box
Customer Installation
SAP ERP Accounting
AP
Payment
Run
Status
Update
Bank
Payment
Request
1. Payment 87
$1,00
0
1. Invoice 28347 $400
2. Invoice 29830 $200
3. Invoice 930029 $300
4. Invoice 73684 $100
Payment
1 2
3
4
Payment
Process
Status
Update*
5
8
Payment
Status
#87 $1,000 Finished
7
6
9
Request
1.Creation
2.Forward to FSN
3.FSN Processing 1. Document Validations
2. Format & Values Conversion
4.Forward to Bank
5.Execution
Status
6.Status Update
7.FSN Processing 1. Document Validations
2. Document Format and Field Level Translation
3. Payment Correlation & Status Update
8.Forward to Customer (Optional)
9.SAP ERP Processing
• All SAP ERP payment methods supported
• All SAP ERP standard or custom payment mediums are supported
• Card Payment methods execute the cycle in 2 steps:
1. Pay vendor using payment card
2. Pay card statement (bank payment)
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SAP FSN
Scenario 2: Banks Statements Integration
Bank
Bank
Statemen
t
1
2
Customer Installation
SAP ERP
Accounting
Electronic Statements
Posting
Rules
Accou
nt
Payabl
e
Payments
Cancellati
on
Genera
l
Ledger
Expense
s
Financial
Supply
Chain
Bank
Account
s
3
• SAP ERP Electronic bank
statement functionality is
used to update bank
accounting, expenses and
payments.
• SAP FSN generates
statements in SAP ERP.
• No impact in SAP ERP
usage.
• Positive impact in Cash
Management and Account
Payable
Statement Processing
1. Banks forward statements to FSN
2. FSN Processing
1. Document Validations
2. Format & Values Conversion
3. Forward to SAP ERP
Reconciliati
on
Accounts
Cash
Managem
ent
Liquidity
Managem
ent
Vendor
Account
Balance
FI-CO
reportin
g
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On-boarding & Service Activation Phases Overview
On-boarding Phase Service Activation Phase
Connectivi
ty Test
Message
Flow Test
User Acceptance
Test
Tenant
Connectivity
Test
Message
Flow Test
User Acceptance
Test
Production
Test
On-boarding is the process of bringing any customer,
whether bank or corporate, onto FSN. This is
independent of any corporate to bank relationship
Service Activation is the process of connecting a
corporate to a bank once on-boarded to FSN.
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Scenario 3: How to On-board to FSN
SAP FSN Onboarding
• Service Agreement
• Customer Specific Environment Generation and Setup
Technical SAP ERP
Integration
• SAP FSN Connector Installation and Configuration
• Technical Connectivity
• Integration Security Implementation
Scenario Specific
Analysis and Configuration
• Bank & Card Payments to bank
• Payment Status to SAP ERP
• Statements to SAP ERP
Mapping & Data
Transformation
• Payments Normalization to Canonical Model
• SAP ERP Electronic Statements Generation
End-to-End Routing
• From SAP ERP to Bank
• From Bank to SAP ERP
Core On-boarding Team:
Project Manager – Manages project with the customer
Business Consultant – Identifies process flows and service types
Integration Consultant – Identifies required mapping and data transformation
Security Consultant – Identifies security requirements
FSN Operations – Provisions tenant in SAP Cloud
FSN Cloud – Manage and monitor running of the tenants
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SAP HANA Cloud Integration Lowers cost, increases speed, and enhances simplicity for our customers
Legend: OD = on-demand / op = on-premise / EC = Employee Central / ByD = Business By Design / PI = Process Integration
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SAP‘s cloud-based bank-company-integration solution offers Simplified connectivity between banks and corporates
– Non-intrusive to IT due to cloud-based integration
– Fast integration within days instead of weeks
– Central monitoring and management
Increased scalability and reach
– Low acquisition, implementation and operating costs for banks and corporates
– Achieving scale for multi-bank and multi-corporate connectivity
– Increased visibility into transactions between banks and corporates
Additional Service Offerings (future)
– New value-added banking applications
– Development by SAP, customer and partner eco-system
Summary
© 2013 SAP AG. All rights reserved.
© 2013 SAP AG. All rights reserved.
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