The Bank Communication Management ES bundle supports the communication of financial transactions of a company to its banks via the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network. It includes Enterprise Services for the creation and status tracking of payment orders as well as enterprise services for receiving bank statements.
SWIFT operates a worldwide financial messaging network. Messages are securely and reliably exchanged between banks and other financial institutions. SWIFT also markets software and services to financial institutions, much of it for use on the SWIFTNet network.
This bundle leverages enterprise SOA through reusable enterprise services. These Enterprise Services communicate between SAP NetWeaver Process Integration (formerly SAP NetWeaver XI) and SAP Communication Management, which will be shipped at the same time as this ES bundle. Figure 1 shows the system landscape for SAP Bank Communication Management, the Bank Communication Management ES bundle (labeled BRM enterprise services), SAP NetWeaver Process Integration and the SAP Integration Package for SWIFT. SAP NetWeaver Process Integration then communicates with SWIFTNet to send payment orders to and receive financial messages from a variety of house banks.
Any company that wants to process payments from within SAP ERP 6.0 can benefit from using this bundle. Treasury clerks would most likely use the features provided. The Bank Communication Management ES bundle provides enhanced straight-through processing of payments, which means that no manual intervention is needed to process payments using this system-all communication occurs on an application-to-application basis once the process is initiated in SAP Bank Communication Management.
OnePager Bank Communication Management (click to enlarge)
For details on Service Operations, Business Objects and Process Components, please check the ES Workplace.
How to Use This ES Bundle
For many companies, communicating with banks is an expensive and inefficient activity. To exchange payment and bank statement information, the finance departments of these companies usually maintain proprietary IT interfaces to each individual bank, and typically, they do business with as many as 10 different banks. And the costs involved in maintaining these interfaces can be prohibitive. In addition, the introduction of the Single Euro Payments Area (SEPA) in 2008 will involve fundamental changes for companies, such as the introduction of new payment methods and the usage of IBAN (International Bank Account Numbers) and BIC (Bank Identifier Codes). Use of SAP Bank Communication Management and the services in this ES bundle can help smooth out all of these payment-related difficulties.
Figure 1. System landscape for the Bank Communication Management ES bundle (click to enlarge)
This bundle offers a single interface for connectivity to house banks via SWIFTNet. The reduction of proprietary bank interfaces results in a lower a total cost of ownership (TCO) for payment infrastructures.
This section will explore a series of use cases for the Bank Communication Management ES bundle. While these examples illustrate a few of the ways that this ES bundle could be used, the intention is to show the flexibility and reusability of these Business Objects and enterprise service operations so that you will have a clearer understanding of how to best deploy them in your own environment. This wiki is also a space for you to share knowledge and collaborate with others who are implementing this bundle.
Use Case 1: Process Outgoing Payments (Credit Transfer)
A company may initiate outgoing payments to vendors, creditors, or employees. Such payments are referred to as credit transfers.
Figure 2. Invoking Create Payment Order changes the status to "Payment medium created" (click to enlarge)
In this use case, an accounts payable clerk initiates outgoing payments by executing a payment run. The payments of the payment run are then automatically grouped into batches in SAP Bank Communication Management. After merging the payments, a manager then approves the batches. It is also possible to implement a multilevel approval process with several approvers. These first three steps happen before any enterprise services are invoked. Executing the final approval step invokes the Request Payment Order enterprise service, which sends the payment data to SAP NetWeaver Process Integration (formerly XI), which formats the web service message into the format SWIFT and the relevant house bank expect. This changes the status in the payment status monitor to "Payment medium created," as shown in Figure 2.
SWIFTNet then sends back a payment acknowledgment message to SAP NetWeaver Process Integration, which then invokes the Maintain Payment Order Based on Collective Payment Order Notification enterprise service. This enterprise service updates the payment status monitor in SAP Bank Communication Management, showing that the payment was received by SWIFTNet as shown in Figure 3.
Figure 3. Maintain Payment Order Based on Collective Payment Order Notification updates the batch's status to received by SWIFTNet (click to enlarge)
SWIFTNet then sends an updated message to SAP NetWeaver Process Integration (formerly XI), which in turn invokes the Maintain Payment Order Based on Collective Payment Order Notification enterprise service again, this time indicating that the payment order has been received by the bank. This is reflected in the payment status monitor and in the display batch screen as "Received by bank," as shown in Figure 4.
Figure 4. Maintain Payment Order Based on Collective Payment Order Notification updates the batch's status to "received by bank" (click to enlarge)
A few minutes later, another status message is received from SWIFTNet, once again invoking the Maintain Payment Order Based on Collective Payment Order Notification enterprise service, which now changes the status message to "Accepted by Bank" as shown in Figure 5.
Figure 5. Maintain Payment Order Based on Collective Payment Order Notification updates the batch's status to "accepted by bank (click to enlarge)
Other status messages, for example, indicating that a certain batch was rejected by the bank, also invoke this same enterprise service to update the payment status.
Use Case 2: Process Incoming Payments (Direct Debit)
Some customers may agree to allow a company to collect payments electronically from the customer's bank account. This type of payment is called a direct debit and the agreement between the customer and the company is referred to as a mandate. In this use case, an accounting clerk initiates direct debits via a payment run. The payments of the payment run are grouped into batches in SAP Bank Communication Management. Each SEPA direct debit includes information that is required by the SEPA regulations, which includes the mandate number, due date, and other specifics. By initiating the collection in SAP Bank Communication Management, the clerk invokes the Request Payment Order enterprise service, which sends the payment data to SAP NetWeaver Process Integration, which formats a web service message into the required format for SWIFT and the house bank in question and sends that message along. SWIFTNet sends back an acknowledgment to SAP NetWeaver Process Integration (formerly XI), which triggers Maintain Payment Order Based on Collective Payment Order Notification to update the payment status to "Received by SWIFTNET." After the bank receives the direct debit request, SWIFTNet sends a second acknowledgment message, which SAP NetWeaver Process Integration passes along by triggering Maintain Payment Order Based on Collective Payment Order Notification again to change the status to "Received by Bank." Other status messages follow a similar process flow.
Use Case 3: Process End of Day Bank Statement
Companies typically receive statements from their banks on a daily basis. A cash management clerk can monitor the receipt of these bank statements using SAP Bank Communication Management's Bank Statement Monitor.
In this use case SWIFTNet sends bank statements from each house bank using message type MT940. SAP NetWeaver Process Integration receives these messages and invokes the Create Bank Account Statement enterprise service to upload the bank statement into SAP Bank Communication Management, updating the status of the payment status monitor, as shown in Figure 6.
Figure 6. Bank statements are delivered from SWIFTNet by invoking Create Bank Statement (click to enlarge)
The bank statements are then posted and processed in SAP ERP 6.0 using familiar transactions, such as post bank statement, postprocess bank statement, and so on.
One possible future direction for this bundle could involve creating a way for smaller companies to connect to the SWIFT network through service bureaus. In the current solution, the bundle offers direct connectivity to the SWIFT network. Direct access to SWIFT requires expensive hardware and certain licenses that could be cost-prohibitive, especially for small and mid-sized companies. These companies could connect indirectly to SWIFT through SWIFT service bureaus. This would mean that the company sends their data to a service bureau and then the service bureau would offer connectivity to the SWIFT network.
SWIFT supports many different message types. Each message type has a three-digit number, and on the basis of the message type and the number SWIFT can clearly identify the content of the message. The ERP backend system automatically generates these different message types. This bundle offers support for only a small subset of the possible message types. In the future, it is possible that additional message types may be supported.
Currently only the subledgers FI-AR (financials, accounts receivable) and FI-AP (financials, accounts payable) are integrated with Bank Communication Management. Another possible direction for this bundle could include the integration of contract accounting as well.
The Bank Communication Management ES bundle achieves connectivity in the following ways: Messages are sent from a company's accounts payable or accounts receivable departments through SAP NetWeaver Process Integration (formerly XI) and the SAP Integration Package for SWIFT (based on XI) to the SWIFTNet Interface (hardware). These messages are then sent from the SWIFTNet Interface to SWIFTNet, and then on to the various banks that the company has accounts with.
- SAP ERP 6.0
- SAP enhancement package 2 for SAP ERP 6.0 or SAP enhancement package 4 for SAP ERP 6.0, depending on the enterprise services used.
For detailed technical information on enterprise services please refer to ES Workplace
- SAP NetWeaver Process Integration (formerly XI)
- SAP Bank Communication Management
- SAP Integration Package for SWIFT (based on XI)
(Back to #EBPP Table of Contents)
Streamlined Bank Communication and SWIFT Integration with SAP ERP at Adolf Würth GmbH and Co. KG
Authors: Claus Wild, Project Manager Financials, Adolf Würth GmbH and Co. KG and Steffen Karsch, Consultant NetWeaver Process Integration, SAP Consulting
Lower TCO by becoming independent from proprietary payment standards and bank-specific e-banking products and setting up a single communication channel to SWIFTNet, which will enable your company to communicate with all the banking partners through this one channel.
Minimize bank connections and enhance straight-through processing rates
via end-to-end integration with SWIFTNet
Full implementation of SAP Bank Communication Management application and
SAP Integration Package for SWIFT ia SAP Ramp-Up program in less than 6 months
For an overview please refer to the attached Reference Slide from Adolf Würth GmbH and Co. KG
Reference Slide from Adolf Würth GmbH & Co. KG (click to enlarge)