Professional Documents
Culture Documents
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Objectives
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VAN
Host to Host
Leased line
e-banking
Treasury
Internet
Other
e-banking
PSTN
fax-banking
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In todays corporate to bank communication, we have an array of multiple standards and communication
protocols to interface software solutions, in order to enable transmission of payment related information:
y From Host to Host communication via VAN
y E-banking solutions using a leased line or via the Internet
y Even communication via fax using the telephone network
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Corporate client
Accounts
Receivable
Treasury
Other
Accounts
Payable
SAP
NetWeaver
Process
Integration
(formerly XI)
SWIFTNet
SWIFTNet
interface
SAP
Integration
Package
for SWIFT
Tomorrow, we can benefit from the new solution: SAP Integration Package for SWIFT, embedded within
our SAP Exchange Infrastructure. This will enable communication from the corporate client to the bank
using a single gateway via SWIFTNet software.
Additionally, the Financial Supply Chain Management product within SAP Financials, will be enhanced
by SAP Bank Relationship Management, available from SAP ERP 2005 onwards, which will enable
monitoring of the end to end financial supply chain, from the creation of the payment file to the upload of
the bank statement, covering the full end-to-end pay-to-reconcile business scenario, as well as grouping of
different payment programs and batching of files in a way that they can meet banking deadlines, allowing
for cost savings and improved cash management.
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These slides describe the pain points experienced today by corporates. These paint points illustrate the
reasoning behind the development of SAP Integration Package for SWIFT and SAP Bank Relationship
Management functionality.
Today many corporations are struggling with a very complex system landscape in order to integrate their
multiple ERP systems with their banks. This results in multiple, often proprietary bank communication
systems and high annual interface costs.
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straight-through-processing
Changes
paper)
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The lack of transparency leads to suboptimal working capital usage and a below-average financial supply
chain.
Customers often face also corporate governance issues in order to keep up with compliance directives and
operational risks to achieve accounting transparency.
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Supplier
Invoice
Processing
Payroll
Processing
Treasury
Cash
Management
Customer
Invoice
Processing
Network
Bank
Payment Initiation
Status Message
Payment Confirmation
Request for Cancellation
Cancellation Status
Payment
Processing
Deposits
Management
Intraday-Statement
End-of-Day Statement
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This slide describes the flow of communications between a corporate and its bank
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Network
SRM
Treasury
Cash
Management
Payment Initiation
Status Message
Payment Confirmation
Request for Cancellation
Cancellation Status
Credit/Debit Advice
Bank Statement
.
Payroll
Processing
Customer
Invoice
Processing
Supplier
Invoice
Processing
CRM
Payment
Processing
Deposits
Management
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These communications are now enhanced with the usage of full portfolio of solutions from SAP, in
particular, with the Financial Supply Chain functionality of Bank Relationship Management, and the SAP
Integration Package for SWIFT embedded in the SAP Exchange Infrastructure (XI).
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SAP ERP
SAP
Bank
Relationship
Management
Accounts
Payable
Batching
Accounts
Receivable
Approval Rules
Treasury
Digital Signature
Human
Capital
Management
SAP
Exchange
Infrastructure
SWIFT Net
FileAct and FIN
SAP
Integration
Package
for
SWIFT
SWIFT
Alliance
Access
Mapping
Routing
Payment Monitor
Workflow
SWIFT
Alliance
Gateway
SAP XI
Resource
Adapter
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In the SAP ERP side, we have functionality for handling of Accounts Payable, Accounts Receivable,
Treasury transactions and the handling of Human Capital Management transactions.
New is the SAP Bank Relationship Management functionality, integrated in the SAP Financial Supply
Chain Management module within ERP. Below are the main steps that take place in the SAP BRM:
Batching, Approvals, handling of digital signatures, the new Payment Monitor, and Workflow
functionality for approval of payment files.
The SAP Exchange Infrastructure contains the SAP Integration Package for SWIFT, which performs
Mapping and Routing of payment messages.
Also integrated with SAP is the SWIFTNet software for FIN and FileAct messages. In one side the
SWIFT Alliance Access and in another side, the Gateway.
Finally we have the Banks, receiving and sending payment messages to corporates.
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3rd Party
System
Execute
Payment
Program
Upload File
File
Server
Send Payment
Order to Bank
Import
Bank
Statement
Collect Bank
Statement
Post/Processing
and
Clearing
Security
Bank
Create
Payment
Order
Security:
Authorization
Encryption
Digital Signature
Download
File
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Today, all communication of payment transactions is routed via the File Server, and a myriad of 3rd. Party
Systems to upload the file, introduce security for the handling of the file (including authorization handling,
encryption, and digital signatures), until we are able to send the payment order to the bank, collect the
bank statement, more security, download the bank statement file and route it via the file server until is
imported in SAP
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Execute
Payment
Program
Create
Payment
Order
SAP Bank
Relationship
Management
Post/Processing
and
Clearing
Bank
Create Batch
Routing
Payment
Approval
Mapping
SWIFTNet
FileAct / FIN
Worklist
Security
Approval Workflow
Authorisation
Digital Signature
Import
Bank
Statement
SAP Exchange
Infrastructure
Receive
Status
Messages
Exception
Handling
Bank Statement
Security
Encryption
Digital Signature
SAP Integration
Package for
SWIFT
SWIFT Alliance
Access / Gateway
Resource
Adapter
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Tomorrow, all the different steps involved in handling of payment communication between the corporates
and their banks will be done inside SAP
This graphic illustrates all these different steps within each of the SAP solutions
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Bank
SAP ERP
Payment
Engine
SAP XI
SAP XI
3a
4a
13
SWIFTAlliance
Gateway
11
Bank
Statement
Deposits
Management
Status
Message
14
Bank
Statement
10
Delivery
Notification
Acknowledgement
Payment
Order
4b
Status
Message
3b
Payment
Order
SAP Bank
Relationship
Management
3a
3b
4a
4b
10
11
12
13
14
12
SWIFTAlliance
Gateway
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An overview of all messages exchanged between a corporate and its bank, and how they are routed in the
context of SAP Bank Relationship Management, SAP Integration Package for SWIFT and SWIFT
Alliance Gateway.
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Single communication channel to SWIFTNet: will enable your company to communicate with all your
banking partners through this one channel. Your company can realize cost savings for the support and
maintenance of your payments infrastructure.
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In Addition
Combining SAP Integration Package for SWIFT with other SAP
applications, such as SAP Bank Relationship Management or the
SAP In-House Cash application, can create even more value
regarding the tracking of the payment life cycle or the setup of a
payment factory
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SWIFTNet Integration: Comment: HMAC stands for Hash Message Authentication Code
SWIFT Standards XML Support: It supports the newly designed XML payment schemes as defined by the
European Payments Council, the governance body that guides and implements SEPA initiatives.
Initially the following XML schemes are supported by the application (subject to change without notice):
y Pain.001.001.02
y Pain.008.001.01
y Pain.002.001.02
y Cash Management Advice Message
y Cash Management Statement Message
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In addition to the messages listed above, SAP Integration Package for SWIFT supports the following
traditional SWIFT
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At this point of time, the SWIFT Adapter will support FIN and FileAct.
The exact schedule of the ERP 2005 downgrade for the Bank Relationship Management is still open. The
downgrade is however planned to start in Oct. 2006.
Note: XI proxies, UNIFI messages and mappings will be available with this ECC Support Package
earliest.
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SAP Integration
Package for SWIFT
SWIFTNet FIN
SWIFTNet FileAct
SWIFTNet
Interface
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A more detailed view of what will be delivered with the SAP Integration Package for SWIFT: XI Content
and additional modules for the File Adapter
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System Landscape
Internal
Network
SAP
Supplier
Invoice
Processing
Payroll
Processing
Treasury
Cash
Management
Firewall
USB Dongle
SAP Exchange
Infrastructure
File Adapter
input
FIN-Module
output
FileAct
error
Outside
World
Firewall
ARP
Proxy
Customer
Invoice
Processing
Internet
SWIFT
Alliance
SWIFTAlliance
Access
Secure Card
Reader
RS-232
ICC
SWIFTAlliance
Gateway
VPN
Box
SWIFTNet Link
Modem
Dial-Up
SWIFTNet FIN
SWIFTNet FileAct
Communication
through SIPN
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SAP
Exchange
Infrastructure
Message
Communication
Layer
SWIFT
SWIFT
Alliance
Access
Alliance
Gateway
MT
File
Exchange
(FTP,
shared
folders)
AFT
Adapter
FIN
File Act
MX
HMAC-SHA256
Native SAP
FILE ADAPTER
with extended
modules
Keyed-hash
message
authentication
code
SWIFT
Alliance Access
native Automated
File Transfer
Adapter
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XI
file
envelope
create
SWIFT
SWIFT
Adapter
2
1
SWIFT Alliance
Gateway
Other
Adapter
XI
Interfaces
Interface
Download
Proxy
Payment
Program or
File Adapter
ERP
Mapping
to ISO 20022
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ISO20022 1.0
ISO20022
(Dummy)
4a
Swift 1.0
SWIFT
SWIFT-Adapter for ERP
Adapter Modules
SWCV
Java
Techn. Comp.
ESA ECC-SE 700
1
ECC-SE
ESA FAST TRACK (ERP)
XI CONTENT ISO20022
CustomerCreditTransferInitiation
Techn. Adapter Interfaces
CollectivePaymentOrderRequest
CustomerDirectDebitInitiation
PaymentStatusReport
XI Interfaces
ISO20022 Interfaces
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Delivered Archives:
iso20022_to_cporNotification_mapping ->
PaymentStatusReportV02_to_CollectivePaymentOrderNotification.xsl
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= contains the
Adapter Modules
SAP also delivers an Installation Guide and a Configuration Guide
to deploy the SAP Integration Package for SWIFT
Deployment of the Adapter Modules is done via the SAP System
Delivery Manager
As an additional requirement, the Java Cryptography Extension
(JCE) for the Java 2 SDK v.1.4 needs to be installed
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Archives:
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Message Types
Dummy: interface for plain file
transfer
ErrorLog: interface for transfer of
error.log file
SWIFT_FIN: interface for transfer of
FIN status messages
SWIFT_FTA: interface for transfer
of FTA status messages
SwiftMessage: Generic
SwiftMessage interface
SwiftMessage_FIN:
SwiftMessage_FIN interface
SwiftMessage_FTA:
SwiftMessage_FTA interface
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Software Component
Software Component
Version
Technical
Software
Component
Description
SWIFT
SWIFT 1.0
SWIFT
SAP Fileadapter
Enhancement for Swift 1.0
Java Modules
XI CONTENT SWIFT
XI CONTENT SWIFT
1.0
SAP Fileadapter
XI_CNT_SWIFT Enhancement for Swift 1.0
technical interfaces
ISO20022
ISO20022 1.0
ISO20022
XI CONTENT ISO20022
ISO20022
ISO20022 ERP
XI CONTENT ISO20022
ERP
ISO20022_ERP
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Note: This is an example containing all Software Components. Naming convention in the XI System for
delivered objects may change.
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Bank
Relationship
Management
New PMW
Formats*
Release
R/3 4.6C
R/3 Enterprise
File Adapter
(MX and
Proxies)
U
U
U
U
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Above are some examples of what type of messages can be routed via XI through SWIFTNet.
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Provisioning
Support on SWIFT application,
installation and configuration
of the system landscape
SWIFTNet Infrastructure
SAP Exchange
Infrastructure
Ensure landscape is available
and support further integration
efforts
Implementation
Configuration of
SWIFTAlliance Access and
Gateway according to the
scenario
End-to-end SWIFTNet
Integration
Import of XI content and
configuration of the SAP
Exchange Infrastructure
Adapt customizing of ERP
to use with the SAP Bank
Relationship Management
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Customer Benefit
Procedure
Fewer bank connections and enhanced straightthrough processing rates through full SWIFT
Integration via
SWIFT Alliance Access/Gateway
Reduced maintenance costs by using global payment
standards
Increased security and compliance
Readiness for SEPA and UNIFI/ISO20022 standard
References
Additional Info
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Customer Benefit
Procedure
Fewer bank connections and enhanced straightthrough processing rates through full SWIFT
Integration via
SWIFT Alliance Access/Gateway
More cash flow transparency and visibility of working
capital due to better payment handling
Reduced maintenance costs by using global payment
standards
Increased security and compliance
Readiness for SEPA and UNIFI/ISO20022 standards
References
Additional Info
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Summary
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