SAP FS-CML Loans Management enables companies to manage both simply structured loans like consumer loans, and complex loans such as mortgage loans.
It is used by many corporations that lend money to their customers or distributors. It has the advantage that it’s an embedded module of SAP FI therefore is fully integrated in SAP’s S/4HANA ERP.
It provides functionality to manage the full loan lifecycle:
- Product Management
- Loan Contract Origination
- Flexible Loan Conditions
- Loan Disbursement
- Position Management
- Cash Flow Disturbances / Loan Prolongation
New Business Process
Loan parties are created as Business Partners and have distinct roles:
- Main Loan Borrower
- Borrower (Additional)
- Authorized Drawer
- Correspondence Recipient
Loan Offers can be created and have different approval steps before a Loan Contract is created. Additionally, Loan Contracts can be fully or partially disbursed during the loan lifecycle.
Position Management Process
Position Management allows for day-to-day business operations:
- Display and Maintenance of Loan master data
- Contract Changes
- Posting to FI accounting based on the loan schedules
- Accruals and Deferrals
- Valuation
- Business Operations
Cash Flow Disturbance Process
During the loan lifecycle the planned Cash Flows can be affected in the following ways:
- Dunning of Open Items
- Interest on Arrears calculation
- Business Operations – manual non-scheduled transactions on individual loans
- Write-offs and Waivers
- Value adjustments (foreign currency, variable rates, etc.)
SAP CML Features
Different Product Types can be maintained in SAP CLM. This allows for the creation of complex Loan Schedules.
Loan Schedules are modeled with the use of Condition Items, which allow for a clear understating and control of calculations.
Loan Lifecycle – Contract
Contract Header
- Company Code
- Product Type
- Status
Contract Master Data
- Loan Type
- Loan Class
- Posting System
- Discretionary Accruals / Deferrals
Loan Lifecycle – Conditions
Condition Header:
- Commitment Capital
- Term Start / Fixed From
- Fixed until / Term End
Condition Items:
- Condition (Interest, Repayment, Fee)
Loan Lifecycle – Condition Concept
Loan Lifecycle – Cash Flow
Account Determination Overview
Planned schedule items are posted to FI Accounting when they are due.
Each Flow Type is posted to FI G/L or Customer accounts depending on an account determination.
Each flow type will post to debit and credit symbols. These symbols are resolved to specific customer of G/L accounts based on the account determination customizing.
Release Procedures
A multiple-level Release Procedure can be defined for the main functions of Loans Management:
- Loan Disbursement
- Loan Master Data Changes
- Charges
- Payoffs
- Waivers/Write-offs
- Reversals
Different Approvers/Agents can be assigned to each release step, and work items can be processed in the Business Workplace Inbox.
For more information, contact us by filling the form below and request a free demo.