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SAP LOANS MANAGEMENT COMPLETELY

INTEGRATED FOR PUBLIC SECTOR


Robyne Lyons / Terri Albright
Abhijit Umbarkar

LEARNING POINTS

Key drivers to implement SAP Loans Management


Implementation approach and timeline
Best practices
Solution highlights
Testing strategy
Conversion strategy

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

IMPLEMENTATION APPROACH AND


TIMELINE

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

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)

SOLUTION HIGHLIGHTS
Process Overview

The borrower
submits an
application

The agency analyst


reviews the
application and
submits to the
board for approval

The agency
analyst converts
the loan
application to an
offer upon board
approval

Funds are
Borrower accepts
disbursed
the offer . Upon
legal and
comptroller
approval the loan
offer becomes a
contract

Loan servicing

SOLUTION HIGHLIGHTS
Key Processes Covered

Business Partner
Loan Origination
Loan Disbursements
Invoicing and Processing Incoming Payments
Business Operations
Dunning
Correspondence & Reporting

Enter Account
Assignment
Details and
Update Contract
Status to 30

CO

FM

FI

CML

SOLUTION HIGHLIGHTS
Process Integration

Create Funds
Commitment with
GL Account, Fund
and Cost Object(s)

Trigger
Disbursement
Post Invoice

Disburse Loan

Post Planned
Records (Billing)

Service Loan
Receive Incoming
Payment

Service Loan
Adjustments/PayOff

Post Invoice for


Loans
Disbursement
with Fund and
Cost Object(s)

Post Loans
Disbursement
Outgoing
Payment with
Fund

Post Customer
Invoice with
Fund / CC

Post Incoming
Payment with
Fund and Cost
Object(s)

Post Adjustment
with Fund and
Cost Object(s)

Liquidate Funds
Commitment &
Post actual
expense with
same Act Asst.

AR Invoice Posted
but washed out
with same FM Act
Asst.

Post Revenue
with GL Account,
Fund and Cost
Object(s)

Post Adjustment
GL Account, Fund
and Cost Object(s)

Post actual
expense with Cost
Elements, Cost
Object(s) and
Fund

Post Revenue
with Cost
Elements, Cost
Object(s) and
Fund

Post Adjustment
with Cost
Elements, Cost
Object(s) and
Fund

SOLUTION HIGHLIGHTS
Public Sector Integration
Create additional tab on Loan Master for FM/GM/CO
account assignments
Automatically create Funds Commitments based on the
account assignments on the FM Tab on loans master
Reference funds commitments on all expense postings
form 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 to
achieve FM and SPL integration for specific Public
Sector requirements

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

FM/CO Account Assignment Tab

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

SOLUTION HIGHLIGHTS
Invoicing and Incoming Payments.
Automatic creation of monthly invoices scheduled
batch 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

SOLUTION HIGHLIGHTS
Business Operations.

Single Postings
Payoff
Charges
Waivers and Write-Offs
Capitalization / Deferral
Interest on Arrears

SOLUTION HIGHLIGHTS
BADi Implementations.

FVD_LOAN_POST
FVD_DISBURSEMENT
FVD_BUS_OP
User Exit 14

SOLUTION HIGHLIGHTS
GRC / Security Roles.

Agency Loan Analyst


Agency Loan Reviewer
Comptroller Loan Analyst
Comptroller Reviewer

Testing Strategy
Plan

Monitor
Execute

Close

Unit Testing

Integration Testing 2 rounds


User Acceptance Testing
Conversion Post Processing

Conv. Testing 1

Conv. Testing 6

Conv. Testing ..

Final Conversion

Mock Cut-Over

18

Conversion Scope

PENNVEST

PEMA

PENNDOT

Business
Partners

Loan Master

Loan
Transactions

Loan
Commitments

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

KEY LEARNINGS
Plan for SAP Loans Management training for the project
team
Get the right consultant for Loans Management and US
Public Sector Integration specialist
Dont underestimate data conversion efforts
Focus on the validation process for conversions
including the validation of future cash flow
Freeze the requirements early on and get the buy-in
from key stakeholders
Identify the pieces of the process that can be handled
by the standard functionality and parts where you
would need custom development

Applications of the solution within Public


Sector
Employee Loans
Student Loans
Loans to Citizens / Businesses for various programs

Contact information

Robyne Lyons : roblyons@pa.gov


Terri Albright: tealbright@pa.gov
Abhijit Umbarkar:
abhijit.umbarkar@thesolutionsco.com

THANK YOU FOR PARTICIPATING


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