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
IS 604 Banking Enterprise Systems
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
IS 604 Banking Enterprise Systems
Order Management
IS 604 Banking Enterprise Systems
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
IS 604 Banking Enterprise Systems
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.
IS 604 Banking Enterprise Systems
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
IS 604 Banking Enterprise Systems
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
1 Order Management Concept
2 Account Holder Change
3 Product Change
4 Account Closure
IS 604 Banking Enterprise Systems
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
IS 604 Banking Enterprise Systems
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
IS 604 Banking Enterprise Systems
Business Workflow
process for dual control
principle
Agenda: Order management 13
Agenda
1 Order Management Concept
2 Account Holder Change
3 Product Change
4 Account Closure
IS 604 Banking Enterprise Systems
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
IS 604 Banking Enterprise Systems
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
IS 604 Banking Enterprise Systems
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
IS 604 Banking Enterprise Systems
Agenda: Order management 17
Agenda
1 Order Management Concept
2 Account Holder Change
3 Product Change
4 Account Closure
IS 604 Banking Enterprise Systems
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
IS 604 Banking Enterprise Systems
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
IS 604 Banking Enterprise Systems
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
IS 604 Banking Enterprise Systems
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.
IS 604 Banking Enterprise Systems