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
… …
9 Posting Control Management
10 Settlement Management
3 Posting Control Processing
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
Posting Control Processing 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
Account
Settlement
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
Posting Control Processing
IS 604 Banking Enterprise Systems
5
Understand posting control functions
Explain formal and material check processing
Explain posting control rule processing
Define functional scope of posting control office and
processing of posting control orders
GOALS OF THIS UNIT
Agenda: Posting Control Processing 6
Agenda
1 Posting Control Overview
2 Posting Control Rules
3 Posting Control Office
IS 604 Banking Enterprise Systems
Posting Control Overview 7
IS 604 Banking Enterprise Systems
Posting Control Management is a component that supports rational processing of mass payment transactions in the Account
Management (AM) system in SAP BaS.
During posting or creation, every payment item and prenote in the AM system is subjected to a number of formal and material
checks. If Posting Lock Management is active, it can as well cause posting errors by locking features (ex: debit postings are
locked) and objects (ex: account is locked) with posting lock documents.
Identified posting errors are subject to posting control rules, where user can configure desired first responses to various posting
problems.
If Posting Control Office (PCO) is active then the system automatically sends posting-related details to PCO and generates
Posting Control Order. In PCO posting control orders can be processed automatically or manually in Posting Control Desktop.
Posting Control Office
Posting Control Order
Automatic
Processing
Posting Control
Desktop
Posting L
ock M
anagem
ent
Account Management
Posting Checks
Posting Control Rules
Payment Form
Locks, Card Locks,
Account Locks Busin
ess T
ransactions
Payment
Transactions
Agenda: Posting Control Processing 8
Agenda
1 Posting Control Overview
2 Posting Control Rules
3 Posting Control Office
IS 604 Banking Enterprise Systems
Posting Control Rules: Posting Checks 9
Depending on the error type identified by formal check, formal
error to which posting control can be applied and to which it
cannot be applied, system has the following reaction possibilities:
Formal Checks: Material Checks:
Value (mandatory attribute not entered)
Value range (entered value is not within value range)
Format (entered value does not match to the
allowed format)
Account Posting Check
Limit (available amount)
Access Limit
Account Name Check
Prenote
Formal Checks Material Checks
Formal error to which posting
control cannot be applied
Formal error to which posting
control can be applied
Formal object check
Default response:
Reject
According to Posting
Control Rules Cancel
No rule
Account Posting
Check
Available
amount check
…
Default response:
Routing Items: Reject
Other Items: Post-
processing
According to Posting
Control Rules
No rule
IS 604 Banking Enterprise Systems
If formal checks did not identify any errors, payment item is
checked further for material errors. Depending on the
material error system performs following actions:
Posting Control Rules: Rule Processing 10
Incoming Payment Item Through Dialog/BAPI/Services/…
Formal Checks
Material Checks
Post
Reallocate
Reject
Post-processing
Redirect
Return
Cancel
Post
Respond
according to
Posting Control
Rules
Formal error to which posting
control rule cannot be applied
No Material error
Material error
Formal
error to
which
posting
control
rule can
be applied
IS 604 Banking Enterprise Systems
Posting Control Rules: Rule Processing 11
The posting control rules in banking services from SAP
enable automatic processing of payment transactions if
there are posting problems. In many scenarios, incorrect
postings can be processed automatically without requiring
any manual processing.
The posting control rules are applied according to specific
input parameters. Input parameters include: error types
payment item type
transaction type group
product
posting control group (this defines your customer groups)
channel
Based on these parameters, the corresponding response
is automatically determined by the system.
The response is determined based on the input
parameters. This means the system uses the input
parameters of the payment item to determine the
response that best suits these input parameters. If the
system does not find a matching entry, it looks for the one
with the most matching criteria.
Input parameters
Posting Control
Rules
Responces
IS 604 Banking Enterprise Systems
Posting Control Rules: Rule Processing 12
Rule Determination
During processing of a payment item several checks may fail. This may result in an item with several error
types being submitted to the posting control rules. Different responses can then be determined in the set of
rules.
Fully qualified access takes priority over partially qualified access. The appropriate rule is determined
according to a sequence defined by a customer. The default determination sequence is as follows:
Channel
Posting control group
Product
Transaction type group
Item type
Error type
If more than one rule appropriate, the valid rule is determined according to the priority of responses
received, where reject takes highest priority whereas post has a lowest priority:
Reject Redirect Reallocate Return Post Post-processing
IS 604 Banking Enterprise Systems
Agenda: Posting Control Processing 13
Agenda
1 Posting Control Overview
2 Posting Control Rules
3 Posting Control Office
IS 604 Banking Enterprise Systems
Posting Control Office 14
Posting Control Office (PCO) - supports efficient processing of mass payment transactions in the account
managing system. It enables both automatic and manual processing of posting control orders.
Aim:
Reduction of the manual post-processing
Cost saving due to reduction in post-processing
Functional Scope:
Enables efficient processing of mass payment transactions
Takes over manual and automatic processing if posting problems are identified when you try to
post a payment item as for example:
• Insufficient funds
• Value date variances and others
Takes into account prenotes, which can also lead to insufficient funds
Manual Processing Automatic Processing
Preparation of all information relevant for
making posting control decision
Post/ return/ reject/ transfer post turnover
Transfer to automatic processing function
Temporally postpone processing
Close posting control order
Resubmission Check limits
Item in post-processing: Renewed posting
Item in reallocation: Renewed check of
posted item
Execute final processing Renewed resubmission
Execution of final response from posting
control rules
IS 604 Banking Enterprise Systems
Posting Control Office 15
All exceptions that cannot be resolved automatically by the posting control rules are sent to
post-processing. This means that a posting control order is created and the person
responsible has to process the payment item manually.
Posting control orders are assigned to different worklists according to specific parameters.
User
Assignment
to Worklist
IS 604 Banking Enterprise Systems
Posting Control Office 16
Order Category
The category of posting control order defines whether the posting control decision affects a
single payment item or the whole account . There are two order categories:
Item Order
Account Order
1. Payment Item
Processing
2. Posting
Control Order
3. Worklist
Assignment
4. PCO
Processing
5. Possible
Actions
Payment
Item
Posting
Control
Order
Worklist 1
User
Automatic
Processing
Res
po
nse
s
Resubmit
Reject/
Return Item
Post Item
Transfer Post
Item
Reverse Item
Complete
Order
Check finds
errors
Posting Control Order Processing
IS 604 Banking Enterprise Systems
Posting Control Processing 17
Posting Control Management is a component that supports rational
processing of mass payment transactions in the Account
Management (AM) system in SAP BaS.
Every payment item and prenote in the AM system is subjected to a
number of formal and material checks. The formal checks are
accomplished before the material checks. In case if checks
identified errors posting control is used.
The posting control rules in banking services from SAP enable
automatic processing of payment transactions if there are posting
problems. In many scenarios, incorrect postings can be processed
automatically without requiring any manual processing.
The posting control rules are applied according to specific input
parameters.
Posting Control Office supports efficient processing of mass
payment transactions by enabling both automatic and manual
processing of posting control orders. Manual processing is done
with the help of worklists, to which posting control orders are sent if
they cannot be handled automatically according to posting control
rules.
IS 604 Banking Enterprise Systems