Account Management (FS-AM) 

Application component Account Management is a central SAP application within the SAP Deposits Management product. The Account Management system is responsible for the management and processing of the statutory reporting figures. It provides information concerning the receivables and payables between a bank and third parties. The accounts, balances and payment items are managed in the Account Management system. The currencies of the balances and turnover items are strictly separated, that is, no conversion takes place. The positions form the basis for external financial reporting, meaning that the contract and turnover data stored here represents the data basis for the creation of the balance sheet. One key processing function of the Account Management system involves the interest settlement and charge calculation for the accounts.

Processing is fully automated. (Rollovers, for example, are automatically executed on the respective date in accordance with rules defined when the contract is created). Changes to the position can be entered using orders (termination of contracts, product changes, account holder changes and so on), both via interfaces and defined order interfaces.

SAP’s Account Management is a new development with a modular, cross-product architecture. The new architecture

·        enables easier integration in the system landscape of a bank

·        fulfills the high performance criteria of a large bank

·        meets the requirements of the business transaction types current accounts (checking) and savings, irrespective of division. Using the Product Configurator you can flexibly design the features of a business type.

·        minimizes system downtimes during upgrade

·        provides an extensive and modification-free enhancement concept (such as adding contract data with the required checks, or defined business transaction events or Business Add-Ins)

·        strictly separates interface and application logic, allowing use of every function by way of defined order interfaces from other previous/feeder systems

The solution has been developed by SAP as standard software for international banks.

Purpose

This component comprises the functions you need in banking for the administration of customer accounts. Together with Payment Transactions, Securities Settlement and Securities Account Management, it is the central component of Transaction Banking which you can use to manage account contracts, account turnovers or account settlements. A special feature of the Account Management system is the integration of card management, since in many respects the administration of cards, such as credit cards or customer cards, is similar to the administration of customer accounts.

Implementation Considerations

Account Management optimizes the processing of customer transactions in the area of account management through automatization and centralization. The most valuable contribution this component makes lies in the depiction and processing of flow data. In the banking sector, both within one bank and also cross-bank, a distinction is increasingly being made between retail and transaction banks for reasons of efficiency. Account Management in no way involves tasks relating to a retail bank, but is centrally focused on the optimization potential of Transaction Banking.

Integration

The contract and account-oriented Account Management system is closely linked to other components in the area of operational banking. This ensures continuous processing.

In this respect, a connection to a system for managing business partner data, such as the SAP Business Partner for Financial Services , is particularly important. This enables you to create and manage business partners centrally. You can also use these or other business partners in another system. For more information, see Connection of External Systems.

For more information about connecting a system for general ledger management, see General Ledger Transfer.

To ensure correct and accurate processing, the Account Management system uses special tools with which you can manage the following processes:

·        Change documents

·        Correspondence

·        Authorizations and releases

·        Parallel processing and job control

·        Derivations

·        Postprocessing orders

Scope of Functions

Following this general overview, this documentation describes the Transaction Banking 4.0 Release.