IS 604: Contemporary Issues in IS Banking Enterprise Systemsissd.iism.kit.edu/downloads/...Session_III_part4_Order_Management_… · 1 Order Management Concept 2 Account Holder Change

Chair of Information Systems IV (ERIS)

Institute for Enterprise Systems (InES)

IS 604: Contemporary Issues in IS

Banking Enterprise Systems

Prof. Dr. Alexander Mädche

Chair of Information Systems IV

Institute for Enterprise Systems

Lecture

supported by:

Agenda – Session III

IS 604 Banking Enterprise Systems

2

Agenda

1 B2tec Company Overview

2 Introduction to SAP Banking Services

3 SAP Business Partner

4 Contract Management

5 Product Configuration

6 Financial Conditions & Pricing

7 Order Management

8 Item Management & Payment Services

9 …

3 Order Management

Co

rre

spo

nd

en

ce

Pe

riod

ic

Pro

cessin

g

Double,

Triple,

Quadruple

Control

Archiving

Product Configuration

Accounting

Financial Conditions/Pricing

Contract Management

Financial

Customer

Information

Management

Reporting

Collateral

Insurance

Order Management/

Business Operation

Posting Control Processing/

Exception Handling

Open Item Management

Combined Settlement

Payment Distribution & Monitoring

Master Contract Management

Posting Lock

Management Settlement

Currency

Conversion

Cash Flow Item Management/

Payment Services

Billing and Invoicing Payment Distribution

Pooling

Credit Facilities


Order Management 4 F

ron

t-O

ffic

e

Mid

-Off

ice

Ba

ck-O

ffic

e

Contact Advisory Offer Deal Mainte

nance

Create BP

Create

Account

Maintain

BP

Maintain

Account

Settle

Account

Create

Product Maintain

Product

Maintain

Conditions

Create

Conditions Assign

Product

Define Ind.

Conditions

Manage

Payments

Maintain Product

Pricing List

Create Product

Pricing List

Settle

Account

Posting

Control

Business

Processes

Business

Events

Business

Transactions

Book on internal

accounts Reporting

Account

Closure

Current account life-cycle

Order

Management

Payments


Order Management


5

Understand the order management concept and

explain use cases of orders

Define the process flow of order execution

Order management on the examples of account

holder change, product change and account closure

GOALS OF THIS UNIT

Agenda: Order Management 6

Agenda

1 Order Management Concept

2 Account Holder Change

3 Product Change

4 Account Closure


Order Management Concept 7

Order Management is used for business operations in banking services from

SAP that:

result in a contract being changed

are connected to complex conditions and follow-up activities

can be executed in the dialog or mass run

are assigned to one contract only

contain user information, time stamps, information about the origin of the entry or

change, and the status display

More complex business operations (example: account product change) are executed

using an order, while simple data changes (example: change of account credit

interest condition) are done directly in the contract.

The order management framework doesn’t deal with payment transaction orders.


Order Management Concept 8

Account Order: • Account Holder Change

• Product Change

• Account Closure

• Notice on Amount

• Disburse Loan

Card Order: • Card Cancellation

• Product Change

Card Pool Order: • Card Pool Cancellation

• Product Change

Master Contract Order: • Master Contract Termination

• Product Version Change for

Master Contracts

• Change to multiple Master

Contracts

Order

management

Order

Management

Framework

Services: Execution Models:

Status Management Mass Processing

Entry and change Data

Release Procedure Dialog Processing

Change Documents


Digression: Workflow and Control Principle

IS 540 – Management of Enterprise Systems

9

SAP Business Workflow can be used to define business processes. These may be simple

release or approval procedures, or more complex business processes. SAP Business Workflow

is particularly suitable for situations in which work processes have to be run through repeatedly,

or situations in which the business process requires the involvement of a large number of

agents in a specific sequence.

You can also use SAP Business Workflow to respond to errors and exceptions in other existing

business processes. You can start a workflow when predefined events occur, for example an

event can be triggered if particular errors are found during an automatic check.

SAP Business Workflow provides functionality for the Framework for the Principle of Dual

Control. The Framework for the Principle of Dual Control enables an application the option of

validating certain process flows with a principle of multiple control:

can freely set the number of releases required (up to a maximum of one entry and three

release levels)

has a uniform appearance for all releases

can use this framework for other objects

Agenda: Order management 10

Agenda



3 Product Change

4 Account Closure


Account Holder Change 11

An Order for Account Holder Change:

Shows the transition of an account from the present account holder to a new

account holder

Is a feature attribute (functionality) of the account product

Provides the ability to keep the full account history and account number

Offers only immediate execution in Dialogue execution (Mass execution vs.

Dialog execution)

Reasons of the account holder change, examples:

Change of legal form

Individual account to joint account

Joint account to individual account

Transfer among natural persons

Error corrections


Account Holder Change: Status and Functions 12

When the order is created in the system it can be executed only in case of absence of double control principle.

If this is not the case, the order can be executed only after the release in the workflow. In the release the order

can be sent back for change, deleted and released/executed.

Before order execution follow-up activities relevant to Account Holder Change are performed in the

system, such as: Delete Limits, Create Bank Statement for Previous Business Partner, Set Old Account

Holder as New Alias, etc.

They can be divided in the Object List tab of the account holder change order into three categories:

Mandatory, example: Change Account Holder in PLM Documents

Optional, example: Delete Limits

Informative, example: Bank Statement Agreement exists

release

change

Entered Deleted create delete

Entered in

Release

Executed

ex

ec

ute

change

reject

Follo

w-u

p a

ctivitie

s


Business Workflow

process for dual control

principle


Agenda



3 Product Change

4 Account Closure


Product Change 14

An Order for Account Product Change:

Enables the product on which an account is based to be changed to a new

product version or product, while retaining the account number and the account

history

Is required if extensive changes are necessary for a product that is already in use

for contracts/accounts, thereby enabling mass change of all contracts based on

the same product and not individual change of each contract/account

Provides a set of rules for the transition between products or versions

Restricts transitions to certain products only

Reasons for change, examples:

Customer requirements change

New legal requirements


Product Change: Transfer Procedure 15

Transfer procedures in the product change process define how the source account is to be

converted into the target product on the basis of attribute groups (set of rules)

In the transfer procedure one of the two procedures can be selected:

Retain Source Account – if selected, in spite of the different new product attributes, the source account

attributes will be retained and not replaced.

Favor Target Product – if selected, new product attributes will replace source account attributes

Certain account attributes (such as currency, contract start date, account holder, and so on) are

not included in the product change

Example of Product Change (transfer procedure: favor target product):

Source account has attributes A and B (for example: settlement, payment details). New product has additional attribute C that is

not available in the source account product (for example: limit). If for the account product change transfer procedure Favor

Target Product was chosen, then after the change process additional attribute C will appear in the source account.

A B

A B C

A B C

Pro

du

ct

Ch

an

ge

Source

Account

Target

Product

Target

Account


Product Change: Status and Functions 16

When the order is created in the system it can be activated and executed immediately only in case of absence of double control

principle. If this is not the case, the order can be activated or executed only after the release in the workflow. In the workflow the

order can be sent back for change, deleted and released for the next processing step.

Product change is not possible / executed:

Across product categories

Across account categories

If contract to be changed is pending / in release

If posting control order exist for account to be changed

If orders exist for processes in the Post Processing Office

release

change

Entered Deleted create delete

Entered in

Release

Activated

acti

vate

change

reject

activate in

release

Executed

execute

Activated in

release

change

Deactivated

reject

deactivate in

release release

deactivate



Agenda



3 Product Change

4 Account Closure


Account Closure 18

Order for Account Closure:

Closure of account contract between account holder and the contract managing

organizational unit

Immediate execution or execution on a specified date

Carries out all necessary functions, such as clearing the remaining balance and

the account settlement, to set the contract status Closed (Terminated) for the

account

Reasons, examples:

Death of an account holder

Change of a joint account

Divorce


Account Closure: Details 19

Account closure with a specified value date

Account settlement is carried out within account closure on this date and using the

conditions valid on this date

Exclude account closure with scheduling

A product attribute can be used to control whether account closure is permitted for an

account on a scheduled date

Simulate account closure: Posting of charges and settlement

Account closure data can be simulated:

Charges, debit and credit interest, CYT, remaining balance, and so on

At any time (present, past and future)

Account closure with outstanding receivable

Incoming payments can be redirected after account closure in order to avoid their rejection.

For that purpose it is possible to set the indicator Closed Account with Outstanding


Account Closure: Status and Functions 20

release

reject

Created Deleted create, save delete

Activated in

Release

Activated

acti

vate

change to be activated in

release

Partially

Executed

Partially

execute

Activated in

release

change

Deactivated

reject

to be deactivated in

release release

deactivate

to be activated in

release

Executed

execute

Partially executed in

release reverse Deactivated

executed in

release reverse Deactivated

reject

to be reversed in

release release

reverse

reject

to be reversed in

release release

reverse


When the order is created in the system it can be activated and executed immediately only in case of absence of double control

principle. If this is not the case, the order can be activated or executed only after the release in the workflow. In the workflow the

order can be sent back for change, deleted and released for the next processing step.

Order Management 21

Order management framework is used for complex business

operations that result in contract being changed, while simple data

change can be done directly in the contract.

Orders can be executed in dialog or mass run as part of the end-of-

day processing.

Principle of Dual Control as part of SAP Business Workflow

provides the option of validating certain process flows (up to three

release levels can be defined).

An order for account holder change can be executed only

individually in dialog mode. It involves execution of additional follow-

up activities that were specified in the order such as: deletion of

limits, generation of bank statement, etc.

An account product change order can be executed in the mass run

or individually. Necessary configurations in customizing have to be

made before order creation, such as creation and selection of target

product, definition of transfer procedure.
