SAP FS-CML Loans Management
It enables companies to manage both simply structured loans like consumer loans, and complex loans such as mortgage loans.
SAP FS-CML Loans Management 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:
NEW BUSINESS PROCESS
Loan parties are created as Business Partners and have distinct roles:
Main Loan Borrower
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
Posting to FI accounting based on the loan schedules
Accruals and Deferrals
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 Master Data
Discretionary Accruals / Deferrals
LOAN LIFECYCLE – CONDITIONS
Term Start / Fixed From
Fixed until / Term End
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.
A multiple-level Release Procedure can be defined for the main functions of Loans Management:
Loan Master Data Changes
Different Approvers/Agents can be assigned to each release step, and work items can be processed in the Business Workplace Inbox.