SAP FS-CML Loans Management

It enables companies to manage both simply structured loans like consumer loans, and complex loans such as mortgage loans.
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SAP FS-CML Loans Management is used globally by many corporations that lend money to their customers or distributors.
Its main usage is for:

Commercial Lending

  • Commercial Lines of Credit
  • Agro Financing
  • Receivable Financing and Factoring
  • Construction Loans
  • Loans Taken
  • Employee Loans / Loans for Advances
  • Collateralized Lending

Commercial Lending

  • Mortgage Loans
  • Student Loans
  • Lines of Credit
  • Auto Loans & Car Financing
  • Buy Now Pay Later
  • Secured/Unsecured Loans

Public Sector Lending

  • Project Loans
  • Subsidy Loans
  • Escrow Management
  • Construction Loans
SAP FS-CML Loans Management has the advantage of being an embedded module of SAP FI; therefore, it is fully integrated in SAP’s S/4HANA ERP.
SAP FS-CML Loans Management provides functionality to manage the full loan lifecycle, such as:
Product Management
Flexible Loan Conditions
Position Management
Loan Contract Origination
Loan Disbursement
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.)

Loans Management Subledger is integrated with the General Ledger in real time.

Loans Management Subledger is integrated with the General Ledger in real time.

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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.

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.