The Financial Accounting - Results Integration ES bundle seamlessly transfers key figures from many external systems to a subledger, where it can be published in financial statements. The bundle performs this task by calculating financial valuations for various instruments, such as hedge adjustments. Or the existing figures can be transferred to double-entry postings in subledgers. Because figures can be pulled from multiple external sources and then consistently housed in one central gateway, they aren't duplicated elsewhere.
The Financial Accounting - Results Integration ES bundle leverages enterprise SOA by providing enterprise service-based integration with third-party systems that provide input for financial reports, including systems that produce double entry accounting entries, accrual data, and other types of valuations.
Any bank that publicly reports its financial figures and wants a simplified format for listing them will find this ES bundle highly helpful. Administrators can send valuations from hundreds of different financial systems to a central gateway, where it's posted in subledgers. Or they can calculate financial valuations, such as amortized costs, for many different kinds of instruments. Financial positions can then quickly viewed and either written up or down. Figures don't need to be pulled from other applications or be recalculated. The administrator's workload is thus significantly reduced, as millions of key data are consistently valued and then funneled into one centralized place.
Financial Accounting - Results Integration (click to enlarge)
For details on Service Operations, Business Objects and Process Components, please check the ES Workplace.
How To Use This ES Bundle
Transferring key figures from many different financial systems can be time-consuming, inconsistent and more fraught with error. Administrators must tap into external systems with many sets of key figures slated for inclusion in financial statements that may not be compatible. Or operational banking figures that analyze internal profitability are usually housed separately, adding to the confusion. Thus there may be two different systems - one for internal profitability figures and another for external financial ones - containing millions of data. Calculations may be done twice with different parameters, taking more time and producing wide-ranging results.
The systems currently available do not integrate internal and external reporting. And there was no seamless way to integrate these two complex sets of numbers from hundreds of other systems until now.
The SAP Financial Accounting-Results Integration ES bundle offers a way to integrate many financial systems through one gateway. Financial data, such as assessing the fair value of a currency option, can be valued and then sent to a subledger. Or the valuations that are already calculated can be shuttled to double-entry postings to be used in financial statements that will be published or seen by the SEC. Since all financial data is in one place, valuations that constantly rise and fall can be tightly controlled and implementation time reduced.
The following use case for the Financial Accounting - Results Integration ES bundle illustrates the message choreography between SAP Bank Analyzer and the third-party pricing engine. This wiki is also a space for you to share knowledge and collaborate with others who are implementing the Financial Accounting - Results Integration ES bundle.
Use Case 1: A Bank Updates Financial Accounting Using External Systems
Banks often have specialized external systems that produce valuations. Some even produce double-entry postings to be integrated into the general ledger.
If systems provide amortization results or hedge adjustments (any valuation, in effect, that is not considered fair value), the administrator would invoke the Create Results enterprise service operation that uses the Financial Instrument Position Accounting Valuation Analytical Result business object. This enterprise service transfers data into SAP Bank Analyzer.
For valuations that deal with fair value, the system administrator would instead invoke the Create Results enterprise service operation that uses the Financial Instrument Position Fair Value Analytical Result business object.
If a system provides a double-entry posting that must be sent to the general ledger, the system administrator would invoke Create Document Based on Notification, which uses the Analytical View of Financial Instrument Ledger Document business object. If many accounting documents must be created, the bulk version of this service should be invoked instead: Create Documents Based on Bulk Notification, or, for dual currencies, Create Documents based on Dual Currency Bulk Notification.
Accrual accounting is required to properly account for interest that must eventually be paid to customers, for example, on certificate of deposit. To send such results to SAP Bank Analyzer, the administrator would invoke Create Accrual Results which uses the Financial Instrument Position Accrual Analytical Result business object.
While most data is pushed over from the third-party system to SAP Bank Analyzer, when it's time to close the books, accruals must be calculated. To request that such data be sent, SAP Bank Analyzer invokes the Request Accrual Result Bulk Creation enterprise service, which uses the Bank Account Settlement business object.
Future directions for this ES bundle will be market-driven.
- SAP Bank Analyzer
- SAP Banking Services 6.0
Related ES Bundles
- Financial Accounting - Financial Instrument Accounting Integration
- Financial Accounting - Financial Instrument Pricing
- Financial Accounting - Loans Integration