Preface

13

Target Audience

14

How To Read This Book

15

How This Book Is Organized

16

Conclusion

17

Acknowledgments

18

1 Payments Within a Corporation

21

1.1 Payments as a Business Imperative

22

1.2 Payments with SAP

26

1.2.1 Payments Management Within Financial Accounting

27

1.2.2 Bank Account Management

29

1.2.3 SAP Multi-Bank Connectivity and Bank Connectivity

34

1.2.4 SAP S/4HANA Finance for Advanced Payments Management

35

1.2.5 In-House Banking Versus SAP In-House Cash

42

1.2.6 SAP Bank Communication Management

50

1.2.7 SAP S/4HANA Finance for Cash Management

56

1.3 Payments Processing

59

1.3.1 Payments in the Name Of

59

1.3.2 Direct Debit

61

1.3.3 Intercompany Payments

63

1.3.4 Payments on Behalf Of

71

1.3.5 Collections/Receivables on Behalf Of

76

1.3.6 Cash Pooling

80

1.3.7 Treasury Payments

83

1.3.8 Preprocessing and Postprocessing

88

1.4 Summary

91

2 Bank Connectivity

93

2.1 Connectivity Standards and Security in Payments

93

2.1.1 SWIFT

95

2.1.2 Host to Host

108

2.1.3 API Usage

108

2.1.4 EBICS

109

2.1.5 Bank Collection and Forwarding Service

120

2.2 Financial Standards

121

2.2.1 Payment Instruments

121

2.2.2 Payment Schemes

130

2.2.3 Payment Systems

137

2.2.4 Payment Formats

142

2.2.5 Bank Fee Analysis

148

2.3 Summary

149

3 Bank Account Management

151

3.1 Functions and Processes

151

3.1.1 Bank Keys

152

3.1.2 Creating Banks

153

3.1.3 Uploading, Migrating, and Replicating Bank Accounts

181

3.1.4 Bank Account Approvals

183

3.1.5 Manage Bank Account Hierarchies App

187

3.1.6 Manage Bank Account Reviews App

188

3.1.7 Closing Bank Accounts

189

3.1.8 Manage Bank Chains App

190

3.1.9 Foreign Bank Accounts App

191

3.1.10 Bank Relationship Overview App

192

3.1.11 Power of Attorney for Banking Transactions

193

3.1.12 Bank Fees

197

3.2 Configuration

201

3.2.1 Define Basic Settings

201

3.2.2 Enable Payment Approval

204

3.2.3 Number Ranges for Technical Accounts ID

205

3.2.4 Define Settings for Bank Account Master Data

206

3.2.5 Define Settings for Bank Account Contract Types

209

3.2.6 Define Field Status Groups

212

3.3 Summary

214

4 Advanced Payment Management and In-House Banking

215

4.1 Advanced Payment Management Functions and Processes

215

4.1.1 Key Components

216

4.1.2 Functions and Apps

230

4.1.3 Master Data

245

4.2 In-House Banking Functions and Processes

260

4.2.1 Prerequisites

261

4.2.2 Account Management Lifecycle

262

4.2.3 General Functions

264

4.2.4 Payments: In-House Operations

282

4.3 Configuration

295

4.3.1 Advanced Payment Management

295

4.3.2 In-House Banking

331

4.4 Integration of Intelligent Services

339

4.4.1 Function and Processes

340

4.4.2 Intelligent Service Integration

341

4.4.3 Configuration

343

4.5 Summary

347

5 SAP Multi-Bank Connectivity

349

5.1 Introduction to SAP Multi-Bank Connectivity

350

5.1.1 System Landscape and Components

351

5.1.2 Cloud Foundry Migration

354

5.2 Connectivity Options

356

5.2.1 EBICS

357

5.2.2 Host-to-Host

360

5.2.3 SWIFT Connectivity

365

5.2.4 Member Banks

366

5.3 Functions and Processes

366

5.3.1 Connector Monitor Transaction

367

5.3.2 Manage Bank Messages App

373

5.3.3 Pull Messages

377

5.3.4 Push Messages

378

5.3.5 Pickup Files

379

5.3.6 Handling of Sensitive Data

382

5.3.7 SWIFTRef Integration

383

5.4 Onboarding

385

5.5 Configuration

387

5.5.1 SAP S/4HANA Finance Configuration and Prerequisites

387

5.5.2 Basic Configuration

392

5.5.3 Inbound and Outbound Processing

402

5.5.4 Business Add-Ins

413

5.5.5 Authorizations

415

5.6 Summary

417

6 SAP S/4HANA Finance for Cash Management

419

6.1 Functions and Processes

419

6.1.1 Bank Account Balances

420

6.1.2 Cash Position

424

6.1.3 Cash Flow Analyzer

425

6.1.4 Short-Term Positioning

438

6.1.5 One Exposure from Operations

446

6.1.6 Manage Memo Records

452

6.1.7 Import Memo Records

454

6.1.8 Bank-to-Bank Transfers

456

6.1.9 Free-Form Payments

459

6.1.10 Cash Concentration

462

6.2 Configuration

467

6.2.1 Planning Levels

467

6.2.2 Planning Groups

470

6.2.3 Liquidity Items

471

6.2.4 Memo Records

472

6.2.5 Cash Pools

476

6.2.6 Define Source Application Accounting

477

6.2.7 Activate Source Application

478

6.3 Summary

479

7 SAP Bank Communication Management

481

7.1 Functions and Processes

482

7.1.1 Payment Approvals

484

7.1.2 Payment Run

487

7.1.3 Batching and Processing Payments

492

7.2 Configuration

498

7.2.1 Basic Configuration

498

7.2.2 Batching Rules Configuration

500

7.2.3 Workflow Activation and Configuration

502

7.2.4 Alerts

506

7.2.5 Useful BAdIs

509

7.3 Summary

509

8 Mapping Format Data

511

8.1 Transition from SWIFT MT to ISO 20022 MX

512

8.2 Functions and Configuration

513

8.2.1 Map Format Data Apps Overview

514

8.2.2 Map Format Data for Incoming Files from Banks

520

8.2.3 Map Format Data for Advanced Payment Management

536

8.3 Summary

538

9 Bank Statements

539

9.1 Bank Statement Processing

540

9.1.1 Overview

540

9.1.2 Bank Statement Reconciliation

543

9.1.3 Bank Statement Monitor

544

9.1.4 Manage Bank Statements

548

9.1.5 Upload Bank Statement

550

9.1.6 Japanese Bank Statements

557

9.1.7 Bank Statement Forwarding Using Advanced Payment Management

559

9.1.8 Intraday Bank Statements

559

9.1.9 Processing Rules

562

9.2 Bank Statement Configuration

565

9.2.1 New Bank Statement Import Program: FEB_FILE_HANDLING

565

9.2.2 Lockboxes

569

9.2.3 Bank Statement Posting

573

9.2.4 Search String Configuration

579

9.2.5 BAdIs

581

9.3 Summary

582

10 The Payment Factory

583

10.1 Designing a Payment Factory

583

10.2 Processes and Functions

588

10.2.1 In-House Banking Processes

590

10.2.2 Payment Factory Functions

595

10.2.3 Payment Orchestration

598

10.3 Quantitative and Qualitative Factors

600

10.4 The Reconciliation Factory

602

10.5 Summary

605

11 Outlook on Payments and Bank Communication with SAP

607

11.1 SAP Solutions

607

11.1.1 SAP Digital Payments Add-On

608

11.1.2 SAP Digital Currency Hub

613

11.2 SAP Outlook by Kolja Ewering

617

11.3 Summary

620

A ISO 20022 Transformation

623

A.1 Opportunities and Risks

623

A.2 From SWIFT Message Type to ISO 20022 XML

625

A.3 Format Transformation Within Payments and Protocols

627

A.3.1 Changes to Specific Fields

627

A.3.2 Changes for pain.002

629

A.4 Format Transformation Within Bank Statements

631

A.5 Changes Within Transaction Banking

634

A.6 Electronic Bank Account Management

634

A.7 Summary

638

B Ongoing Regulations

639

B.1 Sarbanes-Oxley Act

639

B.2 Payment Services Directive

641

B.2.1 PSD2

642

B.2.2 PSD3

644