Master Contract Management (FS-MCM)
The Master Contract Management application component is a central SAP application within the banking services from SAP.
This application component bundles contracts into master contracts and provides special processes and functions for these master contracts.
Implementation Considerations
The application component bundles the following processes and functions that you can also use separately:
Overdraft Protection
To offer the transfer of a sum of cash from at least one funding account to a funded account, implement the Overdraft Protection process. You can combined this with the combined statement process.
Combined Settlement
To determine the charges and interest to be periodically calculated and posted for accounts participating in master contracts, implement the Combined Settlement process. There are two forms of combined settlement that mutually exclude each other. They are represented as attributes in the product, where you can choose one of them:
Compensation
To compensate the balances of individual accounts and to grant preferential conditions for a group of customers by use of economies of scale, implement the Compensation process. You can combine this with the following processes:
Effective Cash Pooling
Facilities
Combined Statement
Balance Transfer
Determination of Pricing Criteria
Bundle Pricing Calculation
To grant preferential prices for a group of accounts of different bank products and different account holders, implement the Bundle Pricing process. You can combined this with the combined statement process.
Payment Distribution and Monitoring
To automatically process deposits and disbursements for a group of contracts according to specified rules via a higher-level contract, implement the Payment Distribution and Monitoring process. You can combined this with the combined statement process.
Effective Cash Pooling
To offer interest optimization and liquidity management to customers who have multiple accounts at your bank, implement the Effective Cash Pooling process. You can combine this with the following processes:
Compensation
Facilities
Combined Statement
Facilities
To offer your customers main lines of credit that apply to multiple contracts, and for example, are valid for different products and currencies, implement the Facilities process. You can combine this with the following processes:
Compensation
Effective Cash Pooling
Combined Statement
Combined Statement
To group together the statements of multiple accounts of a business partner into one single statement, implement the Combined Statement process. You can combine this with all the other processes.
Balance Transfer
To transfer the balances from funding accounts to funded accounts virtually, implement the Balance Transfer process. You can combine this with the compensation and combined statement processes.
Determination of Pricing Criteria
To offer a master contract holder and other beneficiaries preferential prices, implement the Determination and Distribution of Pricing Criteria process. You can combine this with the compensation and combined statement processes. To use the determination of pricing criteria together with the combined statement, add the beneficiary accounts as participants.
The following graphic provides an overview of the options for combining the processes described above:
Note
You use an Implementation Guide (Customizing) to implement the application component. Note that this also contains parts of the Implementation Guide (Customizing) for Account Management, which you need to set up only once.
Parts of Account Management
were used for development and for the documentation.