Business Partner in Collateral
Management 
Definition
Legal or natural persons, who have business interests in Collateral Management entity objects (collateral objects, collateral agreements and receivables).
Use
Business partners in Collateral Management have the following characteristic features:
● The business interests of business partners in Collateral Management are represented as partner functions. All business partners must be assigned to partner functions. The business partners can be individuals or organizations. Collateral Management also supports the scenarios for KNE borrower relationships.
● Only the basic details of the business partners are maintained in Collateral Management. Detailed descriptions can be maintained in an external business partner application.Collateral Management uses the SAP Business Partner for Financial Services (BP-FS) to provide business partner services. You can implement any other external business partner system for business partner services.
● The status of collaterals for a business partner can be analyzed using the Business Partner Overview report.
● The collateral coverage gap for business partners can be approved using the approved coverage gap function.
● Automatic assignments can be generated to receivables (from collateral agreements). This function can be used to collateralize complete loan portfolio of a business partner.
● Termination details can be maintained for each business partner in collateral agreement.
To assign business partners to entity objects, you must first create the business partners in the business partner application. For detailed information on creating business partners in BP-FS, see
Integration
To connect to any external SAP or non-SAP business partner application, you must implement the Business Add-In CMS_BUPA. The standard system provides a default implementation of this Business Add-In, for SAP Business Partner for Financial Services (FS-BP).
Customizing Settings for business partners
You must define the following settings in the Implementation Guide (IMG) Customizing:
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1. To connect to any external application other than BP-FS, you must create an alternate implementation of the Business Add-In CMS_BUPA.To create an alternate implementation, choose Collateral Management ® Basic Settings ® System Setup ® Business Partner ® Define Alternate Implementation.
The standard system provides a default implementation to BP-FS. For more information, see
Integration with Business Partner System
2. Additionally, maintain the following settings for the Business Add-In implementation:
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a. Define the remote function call (RFC) destination of the business partner application in which you want to maintain the business partner details, by choosing Collateral Management ® Basic Settings ® System Setup ® Business Partner ® Define RFC Destination to define the connection to the business partner system.
b. Assign the name of the RFC destination to the name of the business partner application.
2. Define the following:
a. Partner functions by choosing Basic Settings ® Business Partner ® Define Partner Functions.
b. Partner function sets by choosing Collateral Objects ® Basic Functions ® Define Partner Function Sets and Collateral Agreements ® Basic Functions ® Define Partner Function Sets.
You assign partner functions to the partner function sets. The partner function sets must then be assigned to the relevant entity object types. By this assignment, you determine the allowed and required partner functions for an entity type.
For detailed information, see
SAP Business Partner
for Financial Services