SAP CRM 7.

0
FS Products

SAP CRM 7.0

FS Products
 Agenda

1. Products Overview

2. FS Products

3. Appendix

© SAP 2007 / Page 2

 Agenda

1. Products Overview

2. FS Products

3. Appendix

© SAP 2007 / Page 3

 Maintaining Products

© SAP 2007 / Page 4

 Inactive Product Data

© SAP 2007 / Page 5

 Relationships

© SAP 2007 / Page 6

 Hierarchies and Categories

© SAP 2007 / Page 7

 Enhancing the Product Master: Overview

© SAP 2007 / Page 8

 Agenda

1. Products Overview

2. FS Products

3. Appendix

© SAP 2007 / Page 9

 Financial Service Product (FS Product)

Content:

Product Concept and FS-Specific Data

Mapping Products and Settings in Back-End Systems

Enhancement Concept

SAP AG 2006
 Financial Service Product Configuration

CRM is used to design

Collateral
type
sales and marketing
products with a
minimum set of
needs attributes. Attributes
is assigned to
and value ranges can
Product hierarchy
has variants Condition set
1
be predefined.

Product
Condition set
2 The back-end systems
Condition set
are responsible for the
is allowed for 3
settlement of products
is enabled for with all the attributes
Special agreement
A required for servicing.
Special agreement Sales
B organization CRM can handle
Distribution single products and
channel
product bundles.

SAP AG 2006
 Products in Financial Services

The field of financial services comprises a variety of potential

products including:
Loans (consumer, mortgage, etc.)
Cards (credit, debit, etc.)
Accounts (current/checking, savings, etc.)
Insurance (car, life, debt, etc.)
Brokerage (shares, securities, etc.)

In addition, there are elements that are not to be sold individually

but are needed as part of a valid contract as:
Objects (for example, real estate or cars): To collateralize the contract or as
objects to be financed
Collateral objects (for example, real estate): To collateralize the contract
Collateral agreements: To indicate the entitlements to the asset, how the
collateral value is calculated, and specify the purpose of declaration

SAP AG 2006
 SAP Product – General Architecture

SAP product architecture is a flexible approach to creating and

maintaining product master data. To map all your products, an easy
enhancement concept is provided.

Attributes Attributes: Product characteristics

Set types: Semantic grouping of application-

Set type
specific attributes

Category: Specifies which set types are allowed

Category for a product; set types are assigned to categories

Hierarchy: Hierarchical relationships between

Hierarchy categories

Product Product type: General classification of products

type that describes their basic characteristics

SAP AG 2006
 Product Type: 07 Financial Service

The product type 07 (Financial Service) comprises the products in

the financial services area. Each specific product is linked to a
product category.
Financial Service

Mortgage Car Homeowner

Credit card
loan insurance insurance

Collateral Consumer Travel Savings

Giro card
agreement loan insurance product

Collateral objects or financed objects, such as real estate, are

created as product type 01 (Material).
Material
Real
Ship Aircraft Vehicles
estate

SAP AG 2006
 Product Hierarchies Required for Account Origination

Base hierarchy for financial service products:

• Main hierarchy for defining financial service products
• Also used to define collateral agreements and
product bundles
Created by an SAP report

Process hierarchy for financial service products:

• Hierarchy for defining process-dependent
categories
Created by an SAP report

Base hierarchy for materials:

• Used in account origination for collateral objects
and financed objects
Uploaded from SAP ERP or created manually; you
create the categories for account origination (real
estate) manually

SAP AG 2006
 Base Hierarchy for Financial Service Products

Hierarchy A hierarchy consists of categories.

BASE_FS
Financial Services
The base hierarchy comprises the
Categories categories relevant for financial
BASE_FS
Financial Services service products.
BASE_FS_INS
Insurance Categories in the hierarchy define
BASE_FS_INS01
Life & Pension the attributes relevant for products.
BASE_FS_INS02
Property & Casualty
A product is assigned to one
BASE_FS_ACC
Equity Contributions
product category.
BASE_FS_ACC01
Checking Accounts You can extend the base hierarchy
BASE_FS_ACC02
Savings Deposits created by the report, for example
BASE_FS_LOAN
Loan
you can add subhierarchies.
BASE_FS_LOAN01
Consumer Loans Lower-level categories inherit the
BASE_FS_LOAN02
Mortgage Loan set types of the higher-level
BASE_FS_LOAN03
Facilities
category.
BASE_FS_LOAN04
Account Overdrafts
BASE_FS_COLL
Collateral Agreement
BASE _FS_COLL01
Collateral Agreement
BASE_FS_BNDL
Category is fully integrated in the
Product Bundle
origination process.

SAP AG 2006
 Creating FS Products: Loans

Product: Create Financial Service Consumer Loan

Mortgage Loan

The following standard set types apply to all product types and categories:

Description (COMM_PR_SHTEXT): Product description.

Units of Measure (COMM_PR_UNIT): Base unit of measure, alternative units of
measure, and the corresponding conversion factors.
Sales: Control Fields, Quantities (CRMM_PR_BTR): Sales data for a product.
Sales: Groupings (CRMM_PR_SALESG): Grouping of products.

SAP AG 2006
 Creating FS Products: Set Types for Loans I

Basic Data

Minimum Age 019 Age of Applicant

Maximum Age 027 Age group for a
product.
Effective Interest Clearing Frequency in 00
Months Interest and Payments
Effective Interest Method 1 Settings for interest
Number of Partial Payments 2 calculation and loan
disbursement.
Minimum Time Without Repayments 1 month
Maximum Time Without Repayments 3 months

Discount/Premium 1 Proportional per Partial Discount/Premium

Disbursement Specifies when the loan
discount or partial
payment is calculated
and credited to the
customer.

SAP AG 2006
 Creating FS Products: Set Types for Loans II

Term

Term
Term Term To Time Unit Default
The possible terms of a
012 060 Months
financial service product.
024 000 Months

Fixed Interest Period

Interest Lock Time Unit Default

Fixed Interest Period
Indicates how long a fixed
005 Years
interest rate is guaranteed
010 Years for customers.

SAP AG 2006
 Creating FS Products: Set Types for Loans III

Payment Structure

Ref. Interest
Flow Category Date Rule From Date Rule To Payt Frequency Default
Profile
Loan Amount Contract Start
Annuity
Contract Start Monthly in Arrears
Repayment
Interest Contract Start Monthly at End of Period

One-Time Fee Contract Start

(Fixed Amount)

Payment Structure
Indicates the periods and one-time inflows and outflows of loan amounts. From a
financial mathematics point of view, the payment structure has the character of a
condition, and is the basis for determining the payment schedule in the business
transaction.

SAP AG 2006
 Creating FS Products: Set Types for Loans IV

Agreements
Usage
Usage Short Text Usage
01 Construction Financing The possible uses for a
loan.
02 Purchase Real Estate
06 Policy Loan

Special Arrangements
Special Arrangements Description Special Arrangements
0001 Extended Commitment Period Arrangements that can be
made with the customer for
0003 Special Repayment Agreement
the financial service
product.

SAP AG 2006
 Creating FS Products: Collateral Agreement

Product: Create Financial Service Collateral Agreement

Agreement Type

Agreement Type Short Text

010100 Certificated Land Charge

090600 Guarantee of Payment

Agreement Type
Specifies the type of collateral agreement, such as
real estate lien or certified land charge.

SAP AG 2006
 Creating a Real Estate Product: Material

Product: Create Material Real Estate

Real Estate Data

Object Type Short Text

010001 Single Family House
030020 Apartment and Commercial
Building
010004 Townhouse

Object Type
Specifies the type of real estate.

SAP AG 2006
 Product Bundling – The Concept

A product bundle represents a set of products that are sold together

within a single contract. Product bundles can be used for
Marketing Reasons (promotions etc.)
Process Optimization

They will therefore only be designed in CRM.

Product used to group
Product bundle „Mortgage Loan“
several items, CRM
only

Mortgage Loan Loans Management

(SAP or legacy)
SAP Fire Insurance Policy Management
CRM (SAP or legacy)

Collateral Agreement Collateral Management

(SAP or legacy)
Real Estate The underlying physical
product to be financed,
not necessary in all cases

SAP AG 2006
 Product Bundling – Further Examples

Young family Premium Property

Starter Insurances Financing Package
Insurance

Banking
Home Owner Insurance Mortgage Loan
Life Insurance Credit Insurance
Disability Insurance Personal Belongings Insur.
Car Insurance Fire Insurance

Credit Card “Sports” Basic Checking

Account Package
Banking

Banking
Credit Card
Sports Accident Insurance Checking Account
Formula One Tickets Credit Card
Travel Booking Services Internet Banking Service

SAP AG 2006
 Creating a Product Bundle: Relationships

Settings in product master

Relationships
Product Bundle
Product ID Valid Valid To Mandatory Default Grouping Sort Product
From Sequence Type
FS_COLLAGREE02 Coll_Agree 0000 FinServ
FS_MORTGLOAN03 Mortgage 0000 FinServ
FS_MORTGLOAN01 Mortgage 0100 FinServ
FS_MORTGLOAN02 Mortgage 0200 FinServ
FS_COLLAGREE01 Coll_Agree 0300 FinServ
FS_REALESTATE01 0400 Material

In FS Product bundle:
quotation FS_COLLAGREE02
FS_MORTGLOAN01
FS_REALESTATE01

SAP AG 2006
 Specifying Product Relationships (Interlinkages)

To map a business dependency, you can link a

product to:
Another product
An object (for example, an individual
object)
A product category (FS relationship)
You use different relationship types to describe the different
meanings of a relationship to which attributes can be assigned.

Examples of product relationships:

Mortgage loan and collateral agreement
Consumer loan and residual debt insurance

The system transfer relationships to the quotation. It maps

relationships as item relationships.

SAP AG 2006
 Creating an FS Relationship

Relationships
FS Relationship
Category ID Hierarchy ID Description Purpose Short Product Type
Description
BASE_FS_LOAN BASE_FS Loans 0000000001 Extent of FinServ
Collateral
MAT_REALESTATE BASE_MAT Real Estate 0000000002 Collateral Material
Property Charges

You can only enter FS relationships for product type 07 (FS

Product).
You can link one FS product to several categories for different
purposes.

SAP AG 2006
 Example: Collateral Constellation

Mapping
using Charge Scope
relationships

Mapping
Object Collateral Receivable
using
(Real Estate) agreement (loan)
products

Elements of a collateral constellation that you map using relationships:

Collateral charge: Determines the amount by which the asset (object) is debited
by the collateral agreement.
Mapped as an FS relationship with the purpose Collateral Charge.
Collateral scope: Defines the scope of collateral for the receivables assigned to
a collateral agreement.
Mapped as an FS relationship with the purpose Collateral Scope.

SAP AG 2006
 Financial Service Product

Content:

Product Concept and FS-Specific Data

Mapping Products and Settings in Back-End Systems

Enhancement Concept

SAP AG 2006
 Mapping Products Between CRM and the Loans Back-End
System

Attribute In CRM, you create the sales and

Attribute
Attribute marketing view of products. You cannot
usually use these products in an
Sales/marketing attributes operational context.
Attribute CRM: Sales and marketing
Attribute
Attribute
products (minimum set of attributes).
Back-end system: Settlement
products (all attributes necessary for
PRODUCT ABC

Loans Management servicing).

MAPPING
CRM

PRODUCT 123
Mapping CRM products to products
Attribute in back-end system.
Attribute
Attribute

SAP AG 2006
 Mapping Products Between CRM and the SAP Loans Back-
End System
CRM Contract Management

Derivation
Derivation rule XX
CRM Product Settlement
A Product A Product 1 product 1

Derivation rule YY
CRM Product Settlement
B Product B Product 2 product 2

Derivation strategy
Defines derivation steps and places these in sequence.

Derivation Rule per Derivation Step

Defines a field or a combination of fields from the CRM system (source fields)
that the system is to use to determine the field to be derived in Contract
Management (target fields).

Rule Entries per Derivation Rule

Defines field values for the fields for the derivation rule.
SAP AG 2006
 Mapping Between CRM and Collateral Management

SAP CRM Account Collateral

To search for existing collateral objects or

EXCHANGE INFRASTRUCTURE
Origination Management create collateral constellations, SAP CRM
exchanges data with the connected
collateral management system. There are
two ways of exchanging data:

Send_RealEst Receive_Real In SAP CRM, you use exactly the same

ate_Query Estate_Query. Customizing settings for real estate items
and collateral agreements as in the
connected collateral management system.
You use different Customizing settings
for real estate items and collateral
Receive_Collat agreements in SAP CRM and collateral
Send_Collatera management. In this case, you must use
eralConstellatio
lConstellationC
nCreateReque the mapping function provided by the
reateRequest
st origination scenario in the SAP
NetWeaver Exchange Infrastructure (SAP
XI).
Receive_Collat Send_Collatera
eralConstellatio lConstellation
nCreateConfir CreateConfirm
mation ation

SAP AG 2006
 Financial Service Product

Content:

Product Concept and FS-Specific Data

Mapping Products and Settings in Back-End Systems

Enhancement Concept

SAP AG 2006
 Why Do We Need an Enhancement Concept?

A wide variety of different products exist in the financial services

environment, including:

Loans Payment schedule Limits

Accounts Loan Interest/payments Account Standing orders

Credit cards
Fixed interest period Holds

Insurance

Therefore, to map your specific product range you need

additional attributes to those delivered by SAP.

These attributes must be included in the master data for the

products as well as in the FS quotation.

SAP AG 2006
 Enhancement Concept: How to Proceed?

1. Create new attributes for products and group them

Set type together logically into set types.

2. Assign set types to product categories for use in the

product master.
Product
category
3. Integrate set types into business transactions (FS
quotation) via the Easy Enhancement
FS quotation Workbench (EEW) / Advanced Enhancement
enhancement Tool (AET) for CRM 7.0.

4. Integrate the newly created business transaction

component into the user interface. (will be done
automatically using the AET in CRM 7.0)

5. Enhance the appropriate SAP XI interfaces manually

to enable the distribution of new fields to back-end

XI systems via the SAP NetWeaver Exchange

Infrastructure. Then implement the appropriate
mapping methods on both the sender and receiver
side.
SAP AG 2006
 Easy Enhancement Workbench for Business Transactions

Adding new components to the data model of the business

Adding
transaction and integrating them into the business
components processes.

The new component fields are integrated into the business

Integration transaction and you can use them immediately in the
business transaction.
For example, the newly generated components are
automatically integrated into:
Interaction layers
Engineering Change Management (ECM)
Archiving
Business documents
Event handling
Copying logic and checks
Pricing

SAP AG 2006
 Set Type: Product Master - Generated One Order Objects

Product Master One Order Object (EEW)

Flat (form) Flat

Multi-value attribute prefilled by

Multi-value attribute settings in product master

Flat attribute and input help depends

Multi-value attribute on value defined in the product master

Multi-line and prefilled by settings in

Multi-line set type the product master

Set type independent from the

product master

SAP AG 2006
 Agenda

1. Products Overview

2. FS Products

3. Appendix

© SAP 2007 / Page 39

 Account Origination Architecture – Bussiness
View
Account Origination
Case Management
Sales Product Conditions
(incl. Bundle) (sales)
Campaign Collateral Checklists
Agreement
(Offer)
Documents
Offer e.g. Financial
Lead Opportunity Offer Collateral Statement
Collateral
Basic Value
(Offer)
Object
Calculation
(Offer)
Business
Business
Business Rules
Partner Financed
Partner
Object
(Offer)
Total Workflow
Commitment

Integration Layer Business

Services
Process Mapping
Repository
Management

Maintenance and Administration* Common Services*

Scoring
Contracts Collaterals Calculation
Reporting
Calculation Calculation
Create Contract Services Collateral Services
Contract
(Simulation) Object (Simulation) Credit Risk
Calculation
Financed
Conditions Product Create Collateral
Billing Object
(transactional) (settlement) Constellation
(Underlying)
Credit Report
& Rating
Business
Partner … Collateral
…
Agreement
Legend: Services Objects *SAP or Non-SAP
© SAP 2007 / Page 40
 Account Origination Architecture –
Technology View - I

CRM XI Server/
Middleware
Credit Management
Total commitment
FS quotation Business partner creation

Business partner scoring

Business partner incl. external ratings
Business partner
for Financial For FS
Services (FS)
O Loans Management
Items, such as:
P Creation of business

FS Product: Product
P • Product bundle
partner and customer

bundle O (split into components

Payment plan calculation
C during distribution)
R
A Creation of mortgage loan
FS Produkct: T • Mortgage loan contract
Mortgage loan S
U
E Creation of consumer

FS Product:
N loan contract
• Consumer loan
Consumer loan I
Collateral Management
T
Business partner creation
FS product: Y • Collateral
Collateral agreement
agreement Find collateral objects/
agreements

Material: Real estate •Collateral object

Creation of collateral
constellation

Plausibility checks

Business Rule Framework

© SAP 2007 / Page 41

 Account Origination Architecture –
Technology View - II

SAP CML CMS SAP

CRM SAP ERP SAP ERP FSCM

Send Credit Receive Credit

Worthiness Worthiness
Query Query

Send Real Receive Real

Estate Query Estate Query

Send Loan Recei ve Loan

Calculation Calculation
Query Query

Send Collateral Recei ve

Constellation Collateral
Create Request Constellation
Create Request

Send Loan Recei ve Loan

Contract Create Contract Create
Request Request

Receive Send Collateral

Collateral Constellation
Constellation Create
Create Confirmation
Confirmation

Send Loan
Contract Create
Confirmation

Receive Loan Recei ve Loan

Contract Create Contract Create
Confirmation Confirmation

© SAP 2007 / Page 42

 Flexible Rule Framework

A rule framework supports the origination process in several ways:

Plausibility and consistency checks
Product, bundle dependencies, default values, …
Status control
Workflow integration
Start of actions

The rules can flexibly be enhanced according to specific needs.

Rules are implemented customer-specific and modification free.

© SAP 2007 / Page 43

 Example Business Rule: ‘Missing Document’

When Quotation status is set to ‘released’, check if document is missing.

If so, reset status to ‘to be checked’ and alert user.

Quotation status changed to ‘released’ Event

Rule Set status to ‘to be checked’

‚document is missing‘ Rule
Rule and alert user
Rule
Actions
Calculating
Expression
Action
Action
Action
Action
Procuring Calculating
Expression Expression

Procuring Procuring
Expression Expression

© SAP 2007 / Page 44

 Thank you!

© SAP 2007 / Page 45

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