3311 sap loans management completely integrated for public sector

7/22/2019 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



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)



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



Business Partner Loan Origination

Loan Disbursements

Invoicing and Processing Incoming Payments

Business Operations

Dunning

Correspondence & Reporting


Key Processes Covered



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.


Process Integration




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



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




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




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




Business Operations.

Single Postings Payoff

Charges

Waivers and Write-Offs

Capitalization / Deferral

Interest on Arrears




BADi Implementations.

FVD_LOAN_POST FVD_DISBURSEMENT

FVD_BUS_OP

User Exit 14




GRC / Security Roles.

Agency Loan Analyst Agency Loan Reviewer

Comptroller Loan Analyst

Comptroller Reviewer



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



Conversion Scope

PENNVEST

PEMA

PENNDOT

BusinessPartners

Loan MasterLoan

TransactionsLoan

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 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



Applications of the solution within Public

Sector

Employee Loans Student Loans

Loans to Citizens / Businesses for various programs



Contact information

Robyne Lyons : [email protected] Terri Albright: [email protected]

Abhijit Umbarkar:

[email protected]

mailto:[email protected]








THANK YOU FOR PARTICIPATING

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SESSION CODE: 3311

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3311 sap loans management completely integrated for public sector

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