Features

Facility Creation

In order to make drawdowns, you are first required to create facilities. On the SAP Easy Access screen, choose  Accounting Bank Applications Loans Management New Business Facility Mortgage Loan Type Contract Create or  General Loan Type Contract Create .

A facility can have the following statuses: Application, Contract Offer, and Contract. Facilities are binding and can be used to create drawdowns only if they have the status Contract.

At the facility level, you can:

The following business operations are allowed at the facility level:

You can freeze a facility by setting its status to Inactive. For example, you may want to restrict the facility extended to a business partner due to the changed risk rating of the customer. An inactive facility can no longer be utilized by such a business partner, who is allowed very limited operations.

Subfacility Creation

When you create a facility, you are required to create a subfacility to make drawdowns. You can maintain a product type grouping at this level, for example, a subfacility maintained for the Term Loan product type.

The effective date for the subfacility can fall on or after the facility start date.

Similarly, the subfacility limit must equal or be less than the facility limit. Though the individual subfacility limit cannot exceed the overall facility limit, the sum of individual subfacilities may exceed the facility limit.

Any changes in the subfacility date or limit during the term of the facility must comply with the overall facility limit and the amount used under the facility.

If there are no drawdowns under a subfacility, you can delete the subfacility.

Drawdown Creation

Drawdowns are the final and third level in the facility hierarchy, where you can make loans.

Creating Drawdowns: On the SAP Easy Access screen, choose  Accounting Bank Applications Loans Management New Business Facility Create Drawdowns . The start date of the drawdown must fall on or before the effective date of the subfacility. The commitment amount of a new drawdown must not exceed the available amount at the subfacility and the facility levels. Each drawdown created reduces the available amount at the subfacility and the facility levels.

Revolving Drawdowns: You can maintain a drawdown as revolving or non-revolving. In general banking parlance, a revolving loan allows the principal paid to be withdrawn again by the customer. However, in this case, any principal repaid cannot be withdrawn again, but can be used to increase the available amount at the facility and subfacility levels.

Drawdown Disbursement: A drawdown can be disbursed fully or partially. If a drawdown is partially disbursed, the non-disbursed amount is taken into account when calculating the commitment interest for the facility. The creation of each drawdown results in a corresponding reduction at the subfacility and facility levels. Therefore, the limit at the facility level always controls the subfacility and drawdown amounts. A facility contains a limit that cannot be exceeded. A drawdown must not exceed the subfacility limit and must remain within the facility limit. Furthermore, an individual subfacility limit cannot be greater than the facilities limit but the total of all subfacility limits can exceed the facility limit.

Business Operations: All business operations allowed at the product category level are possible at the drawdown level except for Deferral in the case of revolving drawdowns.

Mass Run Report

We provide the mass run report Update Planned Records for Facilities to calculate commitment interest for facilities along with updates to planned records and to generate planned flows when charges or fees are applicable.

To execute this report, on the SAP Easy Access screen choose  Accounting Bank Applications Loans Management Position Management Periodic Processing Update Planned Records for Facilities .

For more information, see SAP Library for SAP Banking on SAP Help Portal at  http://help.sap.com SAP ERP SAP ERP Central Component Financial Accounting SAP Banking Loans Management Drawdown Creation for Facilities .