3311 SAP Loans Management Completely Integrated for Public Sector

SAP LOANS MANAGEMENT COMPLETELYINTEGRATED 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 The agency Funds are Borrower accepts submits an The agency analyst analyst converts disbursed the offer . Upon Loan servicing application reviews the the loan legal and application and application to an comptroller submits to the offer upon board approval the loan board for approval approval offer becomes a contract  SOLUTION HIGHLIGHTS – Key Processes Covered  Business Partner  Loan Origination  Loan Disbursements  Invoicing and Processing Incoming Payments  Business Operations  Dunning  Correspondence & Reporting  SOLUTION HIGHLIGHTS – Process Integration Enter Account Assignment Trigger Service Loan – Service Loan – CML Post Planned Details and Disbursement – Disburse Loan Receive Incoming Adjustments/Pay- Records (Billing) Update Contract Post Invoice Payment Off Status to 30 Post Invoice for Post Loans Post Incoming Loans Disbursement – Post Customer Post Adjustment FI Payment with Disbursement Outgoing Invoice –with with Fund and Fund and Cost with Fund and Payment with Fund / CC Cost Object(s) Object(s) Cost Object(s) Fund Liquidate Funds Create Funds AR Invoice Posted Post Revenue Commitment & Post Adjustment FM Commitment with but washed out with GL Account, Post actual GL Account, Fund GL Account, Fund with same FM Act Fund and Cost expense with and Cost Object(s) and Cost Object(s) Asst. Object(s) same Act Asst. Post actual Post Revenue Post Adjustment expense with Cost with Cost with Cost CO Elements, Cost Elements, Cost Elements, Cost Object(s) and Object(s) and Object(s) and Fund Fund 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 Final Conversion Conv. Testing .. Mock Cut-Over 18  Conversion Scope PENNVEST Business Loan Loan PEMA Partners Loan Master Transactions Commitments PENNDOT  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  Don’t 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 : [email protected]  Terri Albright: [email protected]  Abhijit Umbarkar: [email protected]  THANK YOU FOR PARTICIPATING Please provide feedback on this session by completing a short survey via the event mobile application. SESSION CODE: 3311 For ongoing education on this area of focus, visit www.ASUG.com