Source: SAP Wiki & sdn
Service Oriented Architecture (SOA)
SAP Bank Communication Management Enterprise Service Bundle– SWIFT Net
Following is the structure in “Small & Midsized Enterprise”
Financials
o Bank Communication Management
o Credit Management
o Dispute Management
o Electronic Bill Presentment and Payment
o External Cash Desk
Before we get into the details of how “Bank communication Management Works”, it is very critical and important to know what is “SWIFT Net”…
“SWIFT Net (SWIFTNet Messaging Services):
In order to compete with technologically growing environment, the functionalities required by financial institutions include: interactive, store-and-forward and file transfer messaging, combined with secure browsing capability.
SWIFTNet's three complementary messaging services provide these capabilities in line with the security and reliability expectations of the financial services sector.
SWIFTNet services consists….
Ø SWIFTNet Inter Act: Allows the interactive (real-time) and store-and-forward exchange of messages between parties. This service is particularly suited for mission and time-critical applications.
Ø SWIFTNet File Act: Allows the exchange of files in an automated way. It supports both interactive and store-and-forward modes. It is particularly suited for the exchange of large volumes of data.
Ø SWIFTNet Browse: Enables secure browser-based access to service providers' web servers. This service provides direct access to the secure messaging features of SWIFTNet InterAct and SWIFTNet FileAct.
SWIFTNet PKI (Public Key Infrastructure) is the mandatory SWIFT product required to secure the SWIFTNet services. SWIFTNet PKI provides business applications with authentication, non-repudiation, integrity, confidentiality and access control capabilities.
Bank Communication Management (Enterprise Services Bundle):
Any company that wants to process payments using SAP ERP 6.0 can benefit from using this ES bundle. Treasury clerks would most likely use the features provided. Once Bank Communication Management ES Bundle process is initiated in SAP, it Processes payments straight from our application to partner application without having any manual intervention.
Image1: Bank Communication Management
There are multiple components in Bank Communication Management ES Bundle...like…
- Process Components in Bank Communication Management.
- Business Objects in Bank Communication Management.
- Enterprise Services in Bank Communication Management.
How to Use This ES Bundle:
Many companies face, communicating with banks is an expensive and inefficient activity. To exchange payment and bank statement information, the finance departments of these companies usually maintain proprietary IT interfaces to each individual bank, and typically, they do business with as many as 10 different banks. And the costs involved in maintaining these interfaces can be prohibitive. In addition, the introduction of the Single Euro Payments Area (SEPA) in 2008 will involve fundamental changes for companies, such as the introduction of new payment methods and the usage of IBAN (International Bank Account Numbers) and BIC (Bank Identifier Codes).
“Use of SAP Bank Communication Management and the services in this ES bundle can help smooth out all of these payment-related difficulties”
Image2: System landscape for the Bank Communication Management ES bundle
This bundle offers a Single Interface for connectivity to house banks via SWIFT Net. The reduction of proprietary bank interfaces results in a “Reduced total cost of ownership” (TCO) for payment infrastructures.
Use Case 1: Process Outgoing Payments (Credit Transfer):
A company may initiate outgoing payments to vendors, creditors, or employees. Such payments are referred to as credit transfers
- Accounts payable clerk initiates outgoing payments by executing a payment run.
- Payments of the payment run are then automatically grouped into batches in SAP Bank Communication Management.
- Post merging the payments, a manager then approves the batches. (Also Possible to implement a multilevel approval process with several approvers).
- These first three steps happen before any enterprise services are activated.
o Executing the final approval step activates the “Request Payment Order” enterprise service, which sends the payment data to SAP NetWeaver Process Integration (formerly XI).
o Which formats the web service message into SWIFT format and relevant house bank receives result.
o This changes the status in the payment status monitor to "Payment medium created," as shown in Figure 2.
Image3: Invoking Create Payment Order changes the status to "Payment medium created"
Acknowledgement by SWIFTNet:
- Once above instructions are received by SWIFT Net, its sends back a payment acknowledgment message to SAP Net Weaver Process Integration, which then invokes the Maintain Payment Order Based on Collective Payment Order Notification enterprise service.
- This enterprise service updates the payment status monitor in SAP Bank Communication Management, showing that the payment was “Received by SWIFT Net” as shown below..
Image4: Maintain Payment Order Based on Collective Payment Order Notification
updates the batch's status to received by SWIFTNet
2nd Acknowledgement by SWIFT Net:
Now, SWIFT Net sends another message activating the “Maintain Payment Order Based on Collective Payment Order Notification” enterprise service, which now changes the status message to “Received by Bank” as shown below…
Image5: Maintain Payment Order Based on Collective Payment Order Notification
updates the batch's status to "received by bank"
Final Confirmation by SWIFT Net:
Few minutes later, SWIFT Net sends another message activating the “Maintain Payment Order Based on Collective Payment Order Notification” enterprise service, which now changes the status message to “Accepted by Bank” as shown below…
Image: Maintain Payment Order Based on Collective Payment Order Notification
updates the batch's status to "accepted by bank
- Other status messages, for example, indicating that a certain batch was rejected by the bank, also invoke this same enterprise service to update the payment status
Use Casee2: Process Incoming Payments (Direct Debit)
Some customers, may agree to allow our company to collect payments electronically from their bank accounts. This type of payment is called a “Direct Debit” and this agreement between customer and company is referred to as a “Mandate”. In this scenario, accounting clerk initiates “Direct Debit” using payment Run.
The payments of the payment run are grouped into batches in SAP BCM. Each direct debit includes information that is required by the SEPA Regulations (such as Mandate Number, due date and other specifics).
By initiating the collection in SAP BCM,
o The clerk activates the “Request payment order Enterprise Service”
§ Which sends payment data to SAP Net Weaver process integration -> Which formats a web service message into the required format for SWIFT (In combination with House bank).
o SWIFT Net acknowledgement to SAP Net Weaver process integration which triggers “Maintain Payment Order Based on Collective Payment Order notification to update the payment status to “Received By SWIFT Net”.
o Once bank receives the “Direct debit request”, SWIFT Net sends another message stating “ Received By Bank”.
o Finally Once our house bank receives funds, it sends another status message “Received By Bank”.
Use Case 3: Process End Of Day Bank Statement
Usually companies receive bank statements from their banks on a daily basis. However, a cash management clerk can monitor the receipt of these bank statements using SAP Bank Communication Management’s “Bank Statement Monitor”.
In this scenario, SWIFT Net sends bank statements from each house bank using message type MT940. SAP Net Weaver process integration receives these messages and activates the “Create Bank Account Statement” enterprise service to upload the bank statement into SAP Bank communication management service. See below picture for more info…
Image: Bank statements are delivered from SWIFTNet by invoking Create
Bank Statement
The bank statements are then posted and processed in SAP ERP 6.0 using familiar transactions, such as post bank statement, postprocess bank statement, and so on…..
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