Material number: 50103347

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SAP 2010

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User notes
These training materials are not a teach-yourself program. They complement the explanations
provided by your course instructor. Space is provided on each page for you to note down additional
information.
There may not be sufficient time during the course to complete all the exercises. The exercises
provide additional examples that are covered during the course. You can also work through these
examples in your own time to increase your understanding of the topics.

Due to regulatory changes and comprehensive internal processes banks are moving towards integrated
data management, valuations and reporting.

This Unit should give an overall overview of SAP Architectural strategy in Analytical Banking with
focus on SAP Bank Analyzer.

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SAP Bank Analyzer offers banks a solution portfolio that makes it possible to measure and calculate
financial products in an integrated way.

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Most banks have extremely complicated system landscapes with various solutions, and operative
systems from several providers.

All these solutions and systems have to be integrated and maintained.

To keep future implementation and maintenance cost to minimum, banks want new software solutions
to be open, fully integrated and easily adjusted to meet changing or new requirements.

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This picture gives a typical example of how data management, calculations and reporting have been set
up in the past. Processes were separated between Finance and Risk departments, valuation for internal
purposes were based on different databases than those for regulatory requirements.

As a result the data was stored several times in several places, calculations have not been performed in a
consistent manner so that same key figures in reports of business departments were not comparable.

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The current changes in business requirements are forcing the banks to invest in an infrastructure that
enables consistency, transparency and access to high-quality information across the silos as shown in
this picture.

These changes to requirements are been driven by, for example, Basel II, Risk Adjusted Performance
Measurements, Financial Reporting Requirements and the Sarbanes-Oxley Act.

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Banks are looking for an Integrated Data Management.

1 Single Source of the Truth
Integration of information resolving boundary issues
Integrated views across groups (Risk, Finance, Treasury, and Line of Business)

SAP Bank Analyzer has been developed to fulfill these new requirements and is based on an Integrated
Financial and Risk Architecture.

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Simple and Agile IT Source Once and Use Many

Business Strategy Alignment Integrated Risk, Management Accounting, Financial Accounting and
Regulatory Reporting

Shared Resource Single Version of the Truth

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What functions are in Analytical Banking?

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Service Oriented Architecture (SOA)

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SAP follows an Enterprise Service Oriented Architecture approach that allows the creation of flexible
solutions that are built by loosely combining couples and interoperable services:
Target architecture of the infrastructure in Analytical Banking
Open architecture for adaptive business solutions
Modeling of business flows or business events as enterprise services
Enterprise services that use standardized web services to communicate can be described in one

central repository
Enterprise SOA is based on NetWeaver, SAPs open application and integration platform

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SAP IFRA & Bank Analyzer: Unit Overview

Diagram
Overview SAP Bank Analyzer
Lesson 1: Objectives Analytical Banking
Lesson 2: SAP IFRA & Bank Analyzer

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SAP IFRA & Bank Analyzer: Lesson Objectives

After completing this lesson, you will be able to:

State the main concepts of IFRA

Explain the integration of Bank Analyzer in IFRA

Highlight the main concepts of Bank Analyzer

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SAP IFRA & Bank Analyzer: Business Example

A Bank is looking to implement SAP BA.

The Reporting Manager wants to clearly understand how SAP
guidelines for BA will help his team to address the Regulatory Reporting
requirements

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SAPs Integrated Finance and Risk

Architecture (IFRA) (I)

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Please take a look next slide for the explanation of this figure.

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SAPs Integrated Finance and Risk

Architecture (IFRA) (II)

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The main concepts of IFRA are:

Integration of all information (single source or truth)

Layer Architecture (Basic Data, Valuations, Results)
Communication Services (Standardized Interfaces)
Modularity (Step by Step Implementation)
Openness (Platform for 3rd party applications)
Integration (Integration Cornerstones w/o restricting openness and modularity)
Service Orientation (Near-time processing)
Scalability and Distribution (Various IT environments, local global banks)

Advantages of Architectural guidelines:

Banks need a generic solution for the management of a bank as a whole:

- Combination of Revenue-generating area (valuation of financial products) and operational area (business
support) required

- Consistency, transparency and exchange of information for financial products across finance and risk
- SAP has developed architectural guidelines for financial product valuation area
- They are called Integrated Financial and Risk Architecture (IFRA) which is not a solution, product or
component

- In connection with SAP ERP, this generates a solution that covers the IT requirements of banks as regards
enterprise management
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Accounting as part of IFRA (I)

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Accounting as part of IFRA (II)

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According to IFRAs guidelines, the component of Bank Analyzer are assigned to different layers:
Source Data Layer (SDL)
Process & Methods Layer
Results Data Layer (RDL)
Calculation & Valuation Process Manager (CVPM)
- Reporting & Analytical Layer

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This Unit gives an overview of the general Bank Analyzer Architecture.

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DLL: Data Load Layer

SDL: Source Data Layer

ETL: Extraction Transform and Load

BW: SAP Business Warehouse

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SAP Bank Analyzer offers banks a solution portfolio that makes it possible to measure and calculate
financial products in an integrated way.

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SAP Bank Analyzer is a product family that consists of a number of applications that support the
Analytical Banking scenarios.

It provides an application for the calculation, valuation and analysis of financial products and by doing
so supports the banks financial and risk management processes and the banks controlling processes.

SAP Bank Analyzer offers an integrated data storage for source and result data that is based on financial
products. This integrated data storage is based on SAP NetWeavers BI technology.

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This figure gives an overall picture of an analytical banking system landscape using Bank Analyzer.

The sources systems are connected to Bank Analyzer with ETL (Extraction/Transformation/Load)
techniques to the Source Data Layer (SDL).

The SDL is the common source database on the Bank Analyzer platform.

The Result Data Layer (RDL) provides a framework for the consistent treatment of results data from
different valuation processes.

The infrastructure provides tool s to support data management and valuation like the Calculation &
Valuation Process Manager.

Results that were determined outside of Bank Analyzer can be saved directly in the RDL.

SDL data as well RDL data can be extracted into SAP solutions (BI) as well as into further non-SAP
applications.

DLL (Data load layer) provides standardized ready to use loading functions to load and store data into
SDL.

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Integration of Operational and Analytical:

Overview - Master data and Flow data

Master Data

Master Data

Business
Partner

Contract
Information

Flow Data

Business Partner
Version
Transfer from
Operational to
Analytical Banking

Financial
Transaction

Flow Data
Business
Partner

Payment Items
Settlement Data

Accruals

Accruals
Operational Banking

Analytical Banking: Accounting Subledger

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On this slide, you can see very nicely the processes that a retail product goes through, from Operational
Banking to Analytical Banking and then to the G/L.

The whole process starts with the payment items and settlement data which are generated in Operational
Banking.

With accruals: This is a special case; here you have two options: If you have use a product according to
actual principle, the accruals are calculated in Transactional Banking and then transferred to BA.

If you have a product that works according to plan principle, the accruals calculation takes place in BA.

So when the data from Transactional Banking, that is our payment items and settlement data, is
transferred to BA, the processes in BA take place. The processes in BA are as follows:

Set SDL Time Stamp

Aggregation Processes

Post Business Transactions

Update Secondary Business Transactions

Key Date Valuation

The next step is then the transfer of the data to the G/L.

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DLL: Data Load Layer

SDL: Source Data Layer

P&M Layer: Process & Method Layer

RDL: Result Data Layer

ETL: Extraction Transform and Load

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All components of SAP Bank Analyzer are integrated into specific layers, according to IFRA
architecture.

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This figure shows the layer structure and the data flow between all layers.

To simplify the overview, we have distinguished whether the data is written from a source layer to a
target layer (left hand side) or whether it is read by a target layer application from a source layer (right
hand side).

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According to IFRAs guidelines, the component of Bank Analyzer are assigned to different layers:
Source Data Layer (SDL)
Process & Methods Layer
Results Data Layer (RDL)
Calculation & Valuation Process Manager (CVPM)
- Reporting & Analytical Layer

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SAP Business Warehouse system is required to use DLL functionalities.

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Analytics Layer (AL)

Analytical processes using multifunctional financial and risk results

of the RDL, function specific views of local results, further
processing of global results

General Ledger Connector, Historical Database, Accounting

Merge Scenario, Limit Manager, Profit Analyzer, Strategy
Analyzer

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The SAP for Banking solution portfolio covers the whole range of transactional banking processes.
Further developments focus on deposits and loan management. Existing services will be provided on
Banking Services from SAP.

This figure summarizes the different SAP banking applications that can be used to constitute an SAP for
Banking environment. Note that some SAP banking applications are technically based on SAP ERP,
while others are belonging to Banking Services from SAP. In addition, there are also other banking
applications based neither on SAP ERP, nor on Banking Services from SAP, for example SAP Leasing,
which is based on SAP CRM.

The major difference between the ERP based solutions and Banking Services is that the latter is
designed for and builds on SOA principles. Both solutions offer Enterprise Services implemented on
Web Services Technologies. However, Banking Services follows a different architectural blueprint of
well-designed components that offer services for external orchestration, and also fire and consume
events for cross-component coordination. Offering greater flexibility, this new approach relies even
more on a robust and secure infrastructure.

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Data Management of Source Data and Result Data in Source Data Layer (SDL) and Results Data Layer
(RDL):
Consistent and comprehensive data management with semantically integrated data from all valuation
processes,
Pre-configured and flexible data modeling of source data and result data,
Auditability and transparency of data,
Communication infrastructure for data exchange inside Bank Analyzer,
Standard interfaces for data delivery and extraction into/from SDL and RDL.

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The Tasks of SDL are:

Centralization: The financial data from all feeder systems can be mirrored. This means it is available
from one individual source and there is no additional strain put on the feeder systems.
Homogenization: Financial data is changed into one homogenous format, independent of the
source/feeder system it originates from.
Standardization: This refers to standardized mapping on the basis of the relevant business processes.
Service functions: The service functions within SDL include functions such as validations,
authorizations, correction applications and logging of data changes.
Communication infrastructure: The underlying communication infrastructure of the SDL includes the
standardized read access to data via primary data sources, the flexible enrichment of read data via
secondary data sources and the processing framework for reporting.

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The Source Data Layer is the consolidated Data Store for a all contract, master and transaction data in
the Bank Analyzer.

The data transferred from the different source systems is stored in a flexible data model that is defined
by the customer. Each transaction is stored only once.

The SDL provides:

Centralized, homogenized and standardized financial data,
Tools for data transfer of source systems,
Tools for flexible data modeling,
Versioning, historization and archiving of data,
Service functions, such as, corrections, validations, authorizations.

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Source Data Aggregation

Main goals
1 Considerable performance
improvement
2

Post only what is needed

Reduce overall hardware costs

Sparing of limited time windows for

data processing

Keep it simple!

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Some financial products like for example current or saving accounts often lead to high volumes in
banks. That increases hardware costs due to large data volumes and limited time windows for data
processing.

On the other hand these mass products often need not be evaluated on a single transaction basis. Thus an
aggregation for such products before the analytical valuation processes should improve the performance
considerably if the aggregation processes are substantially faster than the valuation processes on the
single transaction level.

The aim of the source data aggregation is to improve the performance of the posting current accounts
and deposits.

Aggregations of current accounts or deposits are on a business view allowed due to the fact that they are
quite equal and have no complicated valuation processes. Master data are aggregated depending on
customizable characteristics which are described later. Business transactions will be aggregated
correspondingly.
Reduction of hardware costs due to:
- smaller data volumes
- sparing of limited time windows for data processing

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SDL data model provides primary objects for data modeling.

Primary Objects are flexible data stores for all types of financial data.

Primary Objects partly normalize the data into (several) master data and flow data.

Predefined data model that can be extended customer individually.

Imported data from operational systems are stored and managed in one or more Primary Objects.

This data is made available in a standard and consistent manner to the various applications (single
point of truth).

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Primary Objects for Master Data

The Primary Objects that are designed to manage Master Data are:
- Financial Transaction, for example, loan contracts, OTC contracts, facilities
- Financial Instrument, for example, listed securities and security classes
- Accounts, for example, security position account (portfolio)
- Country, for example, country-specific data like ratings
- Hedge relationship, to link hedged items and hedging instruments
- Physical Assets, for example, non-financial collaterals like real estates
- Position Master Data, for example, for position in financial instruments
Primary Object for Market Data
The Primary Object Market Data is used to store market data that is delivered frequently, usually by
external providers. Examples are:
- Interest rate data
- Currency data
- Prices for financial instruments (securities)
- Volatilities
In the SDL, it is possible to set customer-defined Generic Market Data calculated by external
applications, such as, Fair Values for IFRS or PDs for Basel II.

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Primary Object Business Partner

The Primary Object Business Partner (SAP FS-BP) stores and manages all customer information
centrally. Typical business partner information is:
- Main data, such as name and address
- Supplementary data, depending on the business partner category, such as date of birth, legal status
- Relationships (corporate group structures)
- Credit standing data / Ratings
- Data from financial statements or balance sheet analyses
A Business Partner can have different roles (different views on the data), for example, counterparty,
issuer, collateral partner.

Primary Object for Transactional Data

Transaction data includes the business transactions and the positions.
- Business Transactions: Business Transactions are independent, logically-related business
processes that contain changes in value and/or quantity or events, such as, purchase bond
- Positions: Positions record key figures of a given piece of data, such as daily balance, end-ofmonth balance, or monthly average value of an account.

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SDL Service Modules

The SAP pre-configured fields are grouped into service modules, based on business aspects.
Examples are:
- Basic data, like object status, dates and times, currencies
- Partner data like a business partner
- Cash flow data
- Object Relationships.

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Segmentation Service
Segmentation service allows you to add customer-defined characteristics to primary objects.
Definition of characteristic structures (set of customer-defined characteristics) that can be added to
the template versions.
Characteristic structures can be used for:
- Enhancing the template versions with customer-specific characteristics,
- Enhancing position classes with defining and describing characteristics,
- Enhancing position classes with defining and describing characteristics,
- Defining field control settings (optional/required entry fields; display fields; invisible checks for
value tables; entering default values)
- Analyzers.

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The Results Data Layer (RDL) is one important part of the IFRA, which aims at the management of
results that are based on accounting and/or risk related evaluations of financial products.

RDL is a logical data pool for semantically integrated and reconciled results data.

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Market drivers for change are:

Basel II asking for consistency of internal and external risk measurement as well as application of the
risk results in the internal performance management.
Risk-adjusted performance measurement (RAPM) approaches allowing the user to manage risk and
return of the portfolio consistently over time from pre-deal pricing to ex-post performance
monitoring.
Changing accounting principles bringing financial & management accounting much closer together.
Sarbanes-Oxley Act and other regulatory initiatives forcing banks to set up a transparent and high
quality process for all information disclosed to the public.

Purpose of the RDL

Framework to manage results uniformly. In order to avoid the different analytical components
having their own containers and functions to manage results, the RDL provides the means for the
storage and retrieval of this information. This should eliminate, or at least minimize, the need for
specific functions, so that results are more or less handled in a uniform way.
Framework to support the integration of results and guarantee consistency. Integration of results
from different areas becomes more and more important. Different analytical components in the
accounting and / or risk area can not be seen as separate silos, which have no relation to each other.
On the contrary, there are many interdependencies, which require reconciled information from
various sides. The RDL provides means to guarantee the necessary data consistency.

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Advantages of the RDL Framework

Quality: RDL enables you to use a superordinate or higher-level data model for results data. The
granularity of the data is standardized across the Analyzers. The result key figures are unique.
Efficiency and consistency: RDL helps prevent the duplication of results data in different Analyzers,
which avoids redundant data. Data is determined only once, and is then available for other Analyzers
(for example, book values or impairments calculated in Accounting can be used in the SAP Basel II
Solution).
Openness: RDL can be used to collate the results data generated by different Analyzers (SAP
Analyzers and Non-SAP Analyzers).
Integration: The results of one Analyzer can easily be used by other Analyzers. For example, the
Limit Analyzer can use the same Basel II results as the Disclosure and Reporting component. The
results of different Analyzers can be combined and analyzed more easily. For example, the results
from Accounting and from risk analysis can be collated for reporting purposes.
Costs of maintenance and operation: Standard management of results data across all Analyzers
reduces the costs of maintenance.

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RDA
Highest Level Structuring Element for all Results.
Logical Data Pool for semantically integrated and reconciled data from different information
production processes.
Decoupling of information production and information requests.
Idea of one RDA with commonly agreed dimensions.
Aside from the common RDA, additional RDAs for intermediate results or special purpose results
are possible.
Common Dimensions:
Set of characteristics defining the minimal granularity of all results
Information requests towards the RDA can rely on results of at least this granularity
Contract between information production and information requests, to ensure a common
understanding of result data
Examples are (Business Content):
- Financial Transaction ID
- Financial Instrument ID
- Legal Entity
- Security Position ID

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 Result Types

Predefined semantic ranges from structural aspects like:

- Hierarchical structure of results
- Supported versioning schema
- Minimum requirements of characteristics and key figures.
Within these semantic boundaries, the definition of the result type is totally left to customer specific
implementation:
- Assignment of characteristics and key figures

- Authorization profiles
- Check routines for data consistency.
Versioning Schemas:

Four versioning schemas:

- Single versioning with reversal (e.g. AFI),
- One-dimensional versioning (e.g. Aggregation)
- Two-dimensional versioning (like in SDL),
- Result group versioning (e.g. Basel II).
Result Views

Result Views are the general RDL concept for results data retrieval.
Result View defines a flat representation of one or more result types (new: combined read-out e.g. of AFI and
Basel II results).
There are two types of result views to be distinguished:
- Ad-hoc result view:

1:1 for a certain Result Type.

- Customized result views:
Assignment of multiple Result Types; not necessarily consisting of all characteristics and key-figures of
the Result Types.
Pre defined Result View Categories:
- Provide the information about the combinations of result categories that are supported by the system within
one view.
Aggregation is based on result views
Two ways of aggregation:

- Aggregation via customizable Aggregation Level:

based on a customized result view (no ad-hoc view)
specification of granularity defining characteristics,
characteristics and key-figures and its aggregation function are specified on Aggregation Level.
- Aggregation via Views (on-the-fly)
based on customized and ad-hoc result views
specification of granularity defining characteristics,
characteristics and key-figures and its aggregation functions can be specified e.g. via PDS.
The following aggregation functions are supported:
- SUM, AVG, MIN, MAX for key figures
- MIN, MAX for characteristics.

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The best term here is IFRS instead of IAS in this slide.

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This slide broadly shows the tasks of an accountant at a bank.

Basically speaking, the accountant creates journal entries for business events (such as the disbursement
of a loan, the purchase of a bond etc.), which are then valued according to the relevant accounting
standard (IFRS, US GAAP or your own local GAAP).

These valued postings are then enriched with additional data required for reporting purposes (for
example the resident/non-resident status of the recipient of a loan).

The postings are then aggregated in the general ledger.

Period-end the accountant makes adjustment postings and closes the fiscal period. The accountant then
creates the monthly financial statement report.

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Three different possible configurations, all of which can be used at the same time for different situation.

For banks that have external systems (lending, deposits, securities, etc.) that will post and valuate
(amortize, accrue, etc.) transactions on the external non SAP systems, those transactions will be feeded
into SAP Accounting for banks as-is and stored in the source data layer. They will then be made
available for enrichment and aggregation, where SAP accounting for banks will combine the
transactions into user defined aggregated amounts, the aggregated transactions will be made available
for adjustment and close and then made available for use for GAAP, IFRS, etc. reporting.

For banks that have external systems (lending, deposits, securities, etc.) that will valuate (amortize,
accrue, etc.) transactions on the external non SAP systems, but want to post results to SAP accounting
for banks. Sap Accounting for banks will Post the transaction as is, then value the entries (close the
books on a periodic basis, a period being: day, week, month, quarter, year ...you name it,), the next step
is to Enrich and aggregate the transaction, where SAP accounting for banks will combined the
transactions into user defined aggregated amounts to be used for GAAP, IFRS, etc. reporting.

For banks that have external systems (lending, deposits, securities, etc.) that will post detailed
transactions (contracts, adjustments to contracts, etc.) to SAP Accounting for banks. Sap Accounting for
banks will Post the transaction as is, then value the entries (close the books on a periodic basis, a period
being: day, week, month, quarter, year ...you name it,), the next step is to Enrich and aggregate the
transaction, where SAP accounting for banks will combined the transactions into user defined
aggregated amounts to be used for GAAP, IFRS, etc. reporting.

The value to the banks is flexibility in configuration to meet the needs of the existing external systems,
as well as providing the details to achieve auditability.

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Overall processing flow of SAP accounting for banks, where external transactions from lending,
deposits, securities and derivatives are feeded into the Source data layer, processes for post and
valuation, written into the Results data layer for aggregation and classification
Source Data Layer
The SDL manages the basic data for the measurement of financial products that is loaded from
operational feeder systems by means of ETL (extraction, transformation and loading) processes.
The SDL is a source for semantically integrated data for all valuation processes that are based on
financial products and a central consolidated source for valuations The SDL is not used to store data
that has already been analyzed completely. Instead, this data is stored in the RDL.
Results Data layer
The RDL manages consistent and reusable financial and risk data from various calculation and
valuation processes for financial instruments and financial transactions.
The RDL has two main tasks:
- To provide a framework for the consistent treatment of results data from different valuation
processes. The RDL provides means of treating the results data from all Analyzers as consistently as
possible. The individual Analyzers do not need to manage the results data themselves. Analyzers
with varying requirements can, nevertheless, be connected to the RDL. In other words, the RDL can
store both highly-integrated results (global results) and results that are function-specific (local
results).
- To provide a framework for the integration of results data, and to guarantee data consistency.
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It is becoming increasingly important to be able to integrate the results data (global results data) from
various areas. RAPM (risk-adjusted performance measurement) demonstrates this. To use RAPM, data
from Profit Management, Cost Controlling, and Risk Management are required. As a result, different
analytical components (financial accounting and risk, for example) can no longer be seen as separate
silos whose content is unrelated. The RDL provides tools that ensure that global results data is
consistent, but also allows local results data to be stored.

Process & Methods Layer

This layer contains all of the processes and methods within the application context of the business
solutions of the Bank Analyzer platform (third party Analyzer processes, for example). The
generated results are based on data from the SDL and from results data that has already been
delivered from the feeder systems or that has been calculated in previous steps. The following are
examples of processes from the Process & Method Layer:
- Calculation of Credit Exposure
- Calculation of RWA (Risk Weighted Assets)
- Gap analysis
- Calculation of spreads
- Valuation of business transactions.
The following are examples of methods from the Process & Method Layer:
- Calculation of fair value
- Calculation of cash flows.

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The value of a thin GL fat subledger approach.

SAP has designed an analytical banking solution that meets the requirements of todays banks. It
combines detailed accounting information, as in the historical fat-ledger architecture with functionality
that decouples analytical rules from underlying transactional core banking systems. The goal is to
provide all of the required functionality without the disadvantages of the historical approach. The
analytical banking solution:
Decouples accounting and valuation functions from core banking applications and supports them
with a consistent, flexible, and auditable application.
Provides central accounting and valuation functionality to handle local GAAP and IFRS
requirements in parallel using the same source data.
Supports cross-system and department valuations such as hedging, impairment events, and so on.
Enables flexibility for the system landscape by separating operational and analytical applications.
Supports a design based on a thin GL and fat subledger.

This architecture meets two key objectives. First, it eliminates the need to impose accounting and
valuation logic on the core operational applications. Second, it overcomes the limitations of the
historical fat-GL approach.

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Value to bank is Flexibility of processing per product, source system or business unit with nonexclusive mixed approach based on need.

Supports chart of accounts with minimal change and provides multiple dimensions for reporting without
impacting the chart of accounts. Fast organizational and regulatory change capabilities.

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SAP Accounting for Banks covers all major valuation aspects. It offers a huge variety of calculation
engines to handle all aspects of accounting-related valuations. Fair value calculations are typically used
as one example. Accounting-related calculations, e.g. in the area of impairment and hedging are also
covered by SAP Accounting for Banks.

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SAP Accounting for Banks offers pricing engines for the most-widely used banking products.
Technically, this is part of the Fair Value Server of Bank Analyzer. It is also possible to integrate
externally-calculated results, especially for complex products.

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The bank can decide for each key figure, if SAP price calculators are used or if external engines provide
the relevant information.

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SAP Accounting for Banks covers the complete Hedge Lifecycle for the different hedging options
(micro and macro, fair value and cash flow). The hedging process is depicted in 4 major steps.

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Impairment is a topic, which has both operational and accounting-related aspects. SAP offers two
dedicated components: SAP Reserve for Bad Debt covers the operational aspects, while SAP
Accounting for Banks covers the accounting-related aspects.

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Value proposition:
This application fascinates many prospects because of its very simple but effective value proposition:
Practically each company has a spread sheet in place describing best-practices, timelines, process
steps and responsibilities of a closing cycle. With SAP Financial Closing cockpit you can put this
information into a standard application providing a central platform for collaboration, automation
and monitoring of the financial close. Once the close is done you can access all log files from reports
that were executed from the processed task list which presents a valuable archive for audit and
compliance assurance.

In more detail:
SAP Financial Closing cockpit provides the global game plan for a Financial Close.
Based on templates you define the relative timeline for closing activities of a certain type of close,
e.g. monthly, quarterly and year-end-close. The template is then used to generate a task list for a
real close, e.g. Year-end 2008. This task list is then provided to all stakeholders in the process
(accountants, controllers, managers etc.) to execute their tasks and to monitor the status of the close.
Program based tasks can be automatically started per scheduled batch jobs within the ERP instance
or even in remote systems (requires EhP3 and the installation of SAP Central Process Scheduling by
Redwood).

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The financial statement items determined within the Analytics Layer of the AFI subledger can be
derived from both the accounting documents in the Results Data Layer and the Primary Objects in the
Source Data Layer.

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SAP Bank Analyzer Business Content definition and advantages will be covered in UNIT 7.

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The migration to this service-oriented architecture is a strategic goal of Banking Services from SAP 7.0.

The consistent management cycle along strategy & decision operation measure analyze and
decide again requires integrated data sources and reconciled methods. One of the challenges related to
Analytical Banking is the complexity of accessing information with different semantics from
independent systems that use complicated and competing interfaces.

The Financial Services Platform enables banks to work more effectively and efficiently across
information sources and distribution channels to service clients better. With this platform, advisors gain
a more holistic view of the customer and have a better chance of identifying products they can
successfully cross-sell. The platform also gives advisors more time with customers and prospects by
cutting back on administrative processes.

Overall, the Platform provides an end-to-end approach that begins with enhanced tools for client
prospecting and spans every aspect of ongoing relationship management.

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Source Data Aggregation

Main goals
1

Considerable performance
improvement

Post only what is needed

Reduce overall hardware

costs

Sparing of limited time

windows for data processing

Keep it simple!

SAP 2010

Some financial products like for example current or saving accounts often lead to high volumes in
banks. That increases hardware costs due to large data volumes and limited time windows for data
processing. On the other hand these mass products often need not be evaluated on a single transaction
basis. Thus an aggregation for such products before the analytical valuation processes should improve
the performance considerably if the aggregation processes are substantially faster than the valuation
processes on the single transaction level.

The aim of the source data aggregation is to improve the performance of the posting current accounts
and deposits.

Aggregations of current accounts or deposits are on a business view allowed due to the fact that they are
quite equal and have no complicated valuation processes. Master data are aggregated depending on
customizable characteristics which are described later. Business transactions will be aggregated
correspondingly.
Reduction of hardware costs due to:
- smaller data volumes,
- sparing of limited time windows for data processing.

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Integration scenario Financial Accounting for Banking Products integrates the operational banking
systems with Analytical Banking:
The scenario covers the complete Financial Accounting process for Banks for Deposits.
Covers the end-to-end scenario, beginning in responsibility area operational and ending up in
Analytical Banking and ERP-General Ledger.
Reporting is done in the Business Warehouse environment.

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Profitability Management:
Business Cycle
Management Accounting
& Profitability Analysis
Highly
Aggregated
Level

Strategy
& Planning

Strategy
Analyze

Aggregated
Level

Plan, Budget
Measure

Single
Transaction
Level

Execute

Sales &
Services,
Operations

SAP 2010

Profitability management is an integral part of risk and return management. Once the bank has defined
its strategy for, for example, the overall bank or individual business areas/segments, planned targets are
derived from this and the budget is fixed. The operational units of the bank (sales, services, operations)
are responsible for carrying out business operations.

At certain points in time - monthly or quarterly - performance is measured in a profitability analysis.

This examines the extent to which the planned figures have been fulfilled for the individual business
areas. Here, the data can be analyzed on various aggregation levels. Deviations are checked and may
lead to a strategy adjustment and correction of the planned figures or budget.

The area of sales and services, operations, that is, the execution/operation of banking business is not
dealt with in this presentation.

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Profitability Management:
Components
Planning
12

70%
6 5%

10

10

60%
50%

40%

4 0%

6
5

30 %

30%

4
20%

Profitability
Planning

Ser ies 2

Contribution Margin
Scheme Single Contract:
Net Interest Income
Funding Costs
=

10%

0%
Label 1

Lab el 2

Ser ies 1

La bel 3

Balance Sheets and P/L for

Market Units or Segments:

Profitability
Analysis

Management
Accounting

B/S Market Unit Loan

Assets

Liabilities

Gross Interest Margin

Standard Risk Costs
=

P/L Market Unit Loan

Standard Equity Costs

Loss

Standard Process Costs

Profit

Net Interest Margin

SAP 2010 / Page 1

Profitability management consists of the following components: profitability planning, profitability

analysis, and management accounting.

Profitability planning and strategy definition are only considered briefly in this presentation.

The profitability analysis is not dependent on financial accounting and is based on key figures, whereby
its core is contribution margin accounting for an individual transaction, product groups, or a profit
center. A profitability analysis uses primarily NPV analyses. In the analyses, a distinction is made
between time-based measurements and periodic measurements. The time-based measurement can be
made for products with a determined cashflow. Periodic measurements are also possible for products
without predictable cashflows. Volume-based methods are then used.

Management accounting, however, is closely linked with financial accounting, whereby the scenario
focuses on evaluating the performance of organizational units, product groups, or customer groups. To
obtain management information about internal segments and groups, internal costs and revenues also
have to be included in the figures for management accounting, which are not relevant for financial
accounting.

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Planning: For planning, SAP provides the Business Planning component in BI. There, the data used to
create balance sheets or profitability analyses can be reused for planning.

Forecast and simulation: BI also includes tools for forecasting and simulation. Forecast shows whether
the plans can be adhered to. If not, the effects of countermeasures can be simulated.

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As well as BI, you can also access other user interfaces for example from Business Objects, an SAP
company.

SAP provides tools for consolidation and planning on group level.

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The profitability analysis focuses on measuring the performance of different financial products. All
costs and revenues for the individual transaction are entered and calculated to determine a contribution
margin for the individual transaction or to determine a contribution margin for financial products by
aggregating the contracts.

The contribution margin scheme includes the excess spread, risk costs, equity and process costs, to
determine the profitability of a transaction.

Whereas the periodic view is most important in management accounting, it is primarily NPV analyses
that are used in a profitability analysis, that is, the focus is mainly on time-related calculations for sales
management. For example, the commitment NPV of a loan is calculated to determine whether this
transaction has a positive or negative effect on the success of the transaction.

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The profitability measurement can be made on different levels: On the most detailed level, that is, the
level of the individual contract, the level of the product- or customer group, profit center, segment, or of
course the overall bank. As an example, the levels of individual transaction/customer, product- or
customer group, and profit center have been used here.

Depending on which level the profitability measurement is made, data can be taken from different SAP
modules. For example BI, to display data on an aggregated level. This data can be displayed in more
detail by drilling down to Bank Analyzer, or by using other views. Furthermore, actual data from cost
accounting can be included, which is not available on individual contract level.

The standard costs and actual costs are shown in different colors on the slide. The next slides show the
individual levels of profitability measurement in more detail.

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Traditionally, banks have used a tactical ad-hoc approach for implementing new or changing
measurement and reporting requirements. In many banks, this has resulted in a complex architecture
(data silos). This fragmented system landscape generates a high amount of work involved in ensuring
data consistency and the maintenance of interfaces between the systems. Banks are now looking for a
way of reducing operational inefficiency and creating growth potential, by integrating data on a
common platform. SAP responds to this approach by introducing an integrated financial and risk
architecture in Bank Analyzer.

Here, different analytical applications (such as Accounting, Basel II, ALM) are built on the same
common data basis. Here we mean the source data layer (SDL) and results data layer (RDL) This is not
just a technical integration in a database, but a semantic integration. This means that source data
supplied once is used consistently in different analytical applications. The results data generated in the
process and methods layer (PML) is then available again to all analytical applications for further
processing. The principle applies that a key figure is generated by one process only. This guarantees
method consistency throughout and avoids later effort with regard to reconciliation or transfer.

The open architecture means that your own applications can be integrated in the common data store.
Such applications can be created much more quickly than before, since they can focus on the functional
aspects by using the available infrastructure.

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SAPs profitability solution can be used to manage the bank on the basis of integrated management and
financial accounting. Because the methods used are standard, there is no need for extensive
reconciliation between financial accounting and management accounting, which reduces the cost of
reporting, and at the same time is the basis for informed management decision-making.

If integrated reporting based on SAP NetWeaver BI as the main data warehouse is implemented,
normed data can be used. This avoids storing data in multiple data warehouses. Strategic reporting is
supported by flexible views on the data. The analyses are presented using state-of-the-art reporting
tools.

Business Content, which contains comprehensive configuration, can be used to implement the solution
quickly, so reducing TCO for the implementation and operation in your software environment.

The open nature of the solution architecture allows you to integrate SAPs profitability solution flexibly
into your bank's solution portfolio, and also makes it possible to use the methods and results in adjoining
systems. This means that you can adjust and extend the system easily

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SAP Bank Analyzer Business Content definition and advantages will be covered in UNIT 7.

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The call for regulators and from regulators was a natural action item out of this events; the regulators
themselves were emphasizing the need for a strong global Basel II implementation instead of looking for
additional regulations

Complexity of instruments: Structured credit markets are exposed to valuation problems; In the absence
of reliable market prices, instruments need to be valued by models; The models for mortgaged backed
securities backed by US sub-prime loans apparently did not have the correct underlying assumptions in
their models which than had an influence on structured products in general

Investors also need to invest much more into risk analysis

Ratings in structured finance are not yet as much tested as those of corporate issuers; Rating agencies
need to improve their rating methods for structured products

Banks need to strengthen their liquidity risk stress-tests and additional supervisory attention

Action items globally: financial stability forum set up by G7 and EU: Ecofin; the Financial Stability
Forum for example published a list of recommendations on hedge funds to address potential systematic
risk

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Pillar 2 addresses one principle directly to banks.

Principle #1 of the superivisory review process states:

Banks should have a process for assessing their overall capital adequacy in relation to their risk profile
and a strategy for maintaining their capital levels.

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SAP Credit Risk Management overview in SAP Bank

Analyzer: Lesson Summary

You should now be able to:

Describe the Key Capabilities of Credit Risk Management in SAP Bank

Analyzer

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New features Credit Exposure Calculation:

Calculation of Attributable Amounts I

The calculation of the Credit Exposure in the Default risk area is not
driven by regulatory calculation requirements like for Basel II

The calculation mainly depends on bank internal assumptions and rules

Therefore SAP does not deliver a fixed set of formulas but a tool set
which allows the customer to define the calculation based on his needs

To give the customer an overview how an calculation might look like SAP
delivers predefined Business Content for the calculation of the
attributable amounts for default risk
Business

Content contains an sample calculation for business partner risk as

well as for country risk

SAP 2010

Business Context of Attributable Amount

The attributable amount shows how high the risk is that arises from the transaction. If default of the
whole amount of the transaction was a certainty, then the exact amount of the calculation base could
be taken as the attributable amount (volume-oriented attributable amount). In reality, default is
subject to certain laws of probability. These uncertainties are therefore reflected in the calculation of
attributable amount by taking into account default quotas and repayment quotas, for example. This
results in risk-oriented attributable amounts
Depending on whether the risk-reducing effects of collateral are considered, a distinction can be
made between net and gross attributable amounts. Gross shows the maximum possible amount per
partial transaction. For example, the net attributable amount of a transaction results from the gross
attributable amount of the transaction minus the attributable amounts for the collateral that can be
allocated to the transaction.
The formulas chosen for the calculation of the attributable amounts can be free defined by the user of
the system

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New features Credit Exposure Calculation:

Calculation of Attributable Amounts II
Determination of Attributable Amount in the Business Content

On relation granularity the calculation is done using the calculation bases for the relevant exposure and
the distribution coefficients from collateral distribution
Sample Formulas used in the business Content:

Calculation Method 14 and 16:

Attributable Amount = Alpha Max (0, Calculation Base )

Calculation Method 14 and risk type 3rd party settlement risk
Attributable Amount = Alpha Max (0, Calculation Base ) Capital Requirement
Factor

Calculation method 15
Attributable Amount = Alpha Max (0, Calculation Base ) PD LGD

Calculation method 15 and risk type 3rd party settlement risk

Attributable Amount = Alpha Max (0, Calculation Base ) PD LGD CRF

Calculation method 17
Attributable Amount = Alpha Max (0, Calculation Base ) CEQ LGD CVaR
Instead of Max (0, Calculation Base ), the absolute value of Calculation Base can be used as well

SAP 2010 / Page 1

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SAP Bank Analyzer Business Content definition and advantages will be covered in UNIT 7

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Limit Management

SAP Limit Manager for Banking: As an integral part of SAP's Bank Analyzer the Limit
Manager supports banks in enforcing their risk strategies by providing functionality to limit
risk key figures. The SAP Limit Manager is intended as corporate/group limit system for
any type of limit (e.g. liquidity risk, credit risk, market risk) and as operational limit system
for commercial credit limits. In line with the architecture of SAP's Bank Analyzer the Limit
Manager does not contain real-time functionality and is therefore not intended to serve as
an operational limit system for trading activities. However, in addition to functions like limit
transfer, interim limit or a review workflow, it also provides single transaction checks for
new transactions.
Key Capabilities
Setting and Management of Limits (e.g. Administration of Limits, Individual Structuring
of Limits, Interim Limits and Limit Transfers)
Monitoring and Controlling of Limits (e.g. Post processing, Audit Trail, Review
Functionality, Automatic Matching of Reservations)
Alerts and Exception Handling (e.g. different Trigger Points for Early Warnings, Single
Commitments)
Risk Reporting (Extensive Reporting Functionality, Interfaces with BI, Aggregation
across Business Partner Hierarchies)
Interface to 3rd party applications and integration with other Bank Analyzer modules
(e.g. Basel II Engine)
SAP 2010

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Risk Management: Portfolio Limits

Typically batch, partly real-time
Credit risk (Market Risk is real-time -> end of day)
Exposure calculation
Any combination of dimensions as limit level

Operations: Single contracts, Facilities, Structured Finance, Corporate Cash Mgmt, Netting
Agreements
Real-time
Pricing

Dimensions of requirements
Real-time vs. Batch
Risk type (credit risk, market risk, )
Sophistication of exposure calculation
Flexibility of object the limit is assigned to

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Limit
Management

Limit
Management

Architecture of Limit Management

Product

Branch

Cust.

...

Limit Type

Reporting
Limits

Calculation of
risk amounts

Risk
Measurement

Exposure
Methods
workbench

Transaction
data

Risk View

Transaction
Manager
in SDL

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Further topics:
Optimized data supply from FDB for analyzers (performance)
Functional complete module customizing for Credit Exposure
Definition of necessary sample derivations for calculation process
Definition of RDB result tales
Exemplified delivery of HDB definitions and calculation functions

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Definition
Business Configuration (BC) Sets are packages which contain configuration settings snapshot. BC Sets
can use attributes for re-use of the configuration multiple times
Usage

BC Sets are used to take settings from one system into another system while controlling the settings that
get transferred.

They can be used as a configuration documentation tool for validation purposes.

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Bank Analyzer has to be integrated into the banks system landscape, which may comprise various
operational systems provided by SAP, other vendors, or in-house development. These solutions
and systems all have to be integrated and maintained. To keep future implementation and
maintenance costs to a minimum, banks want new software solutions to be open and easily
adjustable to meet changing or new requirements

New analytical banking applications should therefore have standardized interfaces that allow them
to meet changing requirements from different source and middleware systems

This Unit describes the Bank Analyzer data integration aspect

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In 2003, SAP announced its SOA strategy to change the design of business applications to enable
the rapid composition of business solutions by encapsulating business logic and providing it as
Enterprise Services based on SAP NetWeaver's SOA platform
As a consequence for SAP for Banking, the SAP SOA strategy was implemented with Banking
Services from SAP
As part of Banking Services from SAP, Bank Analyzer has the SAP SOA architecture:
To conform to SAP SOA strategy and platform architecture
(service based communication)
To reuse the existing information provisioning concept within Banking Services from SAP
(information broadcasting)
To have the capability for near-time analytical processing, which is the basis for future
architecture decisions
Banking Services from SAP is integrated into Enterprise Services and SAP Process Integration (PI)
using message-based and event-based communication
Bank Analyzer uses event-based SOA to make it easier for customers to integrate other SAP
systems and non-SAP systems than would be the case using a data-oriented ETL approach

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Consequences for the Bank Analyzer Data

Integration Strategy

Based on the clear commitment of Banking Services from SAP to SAP's

SOA strategy, all new interfaces of Bank Analyzer are provided as
enterprise services, and no new BAPI interfaces are provided

Type of approaches for the middleware

Message-based middleware approaches
ETL-based middleware approaches

SAP 2010

Message-based middleware approaches

Integration can be done using a message-based middleware provided by SAP (such as NW PI) or 3rd
party vendors to provide mapping and interface technology alternatives.
Bank Analyzer interfaces are semantically and technically aligned within SAP and especially within
Banking Services from SAP.
Therefore, for SAP-SAP integration, the services can be used point-to-point without using
middleware at runtime
ETL-based middleware approaches
Besides the existing BAPI interfaces, you can also connect enterprise services to ETL-based data
integration tools offered by SAP (for example, SAP NetWeaver BW ETL or SAP BusinessObjects
Data Services) or 3rd party vendors.
Reasons for using ETL tools are:
- The customer has legacy systems that cannot derive events
- The customer already has ETL or enterprise data warehouse implementations
- Customer focus on business intelligence (BI) or enterprise data warehouse integration
(Bank Analyzer is installed as part of or on top of the customers enterprise data
warehouse), meaning that the same technology has to be used for data warehousing and
Bank Analyzer integration.
- Today not all operational products and/or analytical scenarios are available within the
service oriented integration approach on SAP side

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All data which is stored in the SDL, RDL or Analytics Layer can be extracted to other SAP systems or
non-SAP Systems for valuation and reporting purposes

The different possibilities to extract data out of SAP Bank Analyzer are shown in this figure

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The SAP Open Hub Destination service reads data from BW InfoProviders and extract the data into flat
files or tables that server as the data source for external Data Marts.

SAP Open Hub is licensed separately by SAP

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The function Generic BI Data Extraction is used to extract results data from RDL and SDL in SAP Bank
Analyzer to SAP Netweaver (BW)

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Extraction and Reporting Services:

Generic Ad Hoc Reporting

SAP 2010

Generic Ad Hoc reporting displays data from SAP Bank Analyzer system. The Data Processing
Framework is used to select the data. Depending on which application of the data Processing
Framework you use, you can display various data records, such as historical data or limit data. The
selected data can be displayed directly in the Bank Analyzer System

Generic Ad Hoc reporting should be used in particular for small volume of data

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In most customer scenarios, a large degree of automation, load management and flexibility is
required of the processes used to load data. An ETL tool such as SAP BusinessObjects Data
Services can meet these requirements. SAP BusinessObjects Data Services is a productive and
scalable integration platform with which data can easily be explored, extracted, transformed and
delivered everywhere, at any frequency, and through a single, graphical design environment.
These functionalities ensure data integrity, maximize developer productivity, and accelerate
reporting, query and analysis, and performance management projects

To prevent disruption of existing extraction scenarios, SAP recommended that you load SAP
Business Suite Data via the SAP Standard Extractors (with SAP BW) and integrate any 3rd party data
sources with
SAP BusinessObjects Data Services

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SAP offers an ETL tool for delivering data to Bank Analyzer by combining SAP NetWeaver BW
technology with the Data Load Layer (DLL) as part of Bank Analyzer. The role of SAP NetWeaver
BW is to extract data from source systems and to transform the data to the format that is needed by
the reporting and analytical applications. The Data Load Layer loads transformed data into Bank
Analyzer

The extraction and transformation of source data via SAP NetWeaver BW is handled by standard
SAP NetWeaver BW functionality

DLL is part of Bank Analyzer and has an inbound interface to load data into Bank Analyzer. It
bridges the gap between the SAP NetWeaver BW infrastructure and the inbound interfaces (BAPIs
for SDL/HDB and XI interfaces for RDL) of Bank Analyzer. Therefore, it rounds off the SAP ETL
solution (together with SAP NetWeaver BW) by transferring the data from a customers source
systems to Bank Analyzer. This results in an end-to-end scenario. Together with Business Content,
the effort of implementing the process is reduced

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The DLL contains the following functions

Integration into SAP NetWeaver BW infrastructure
Logging of changed primary objects
Export of data for primary objects from a set of SAP NetWeaver BW InfoProviders
(Business Content)
Mapping of data from SAP NetWeaver BW objects to BAPI structures (for SDL data) or
function modules (for RDL data)
Call of update BAPI or function modules
Return of messages from BAPIs or SAP NetWeaver PI proxies to SAP NetWeaver BW
Infrastructure
Logging of the load status for each object
Handling of data processing by means of customizing options (Business Content)

The DLL does not implement

Any data checks. The mapped data will be forwarded directly to the inbound interface of
Bank Analyzer. This means that data has to be checked beforehand in the transformation
layer via standard SAP BW technology
Any analysis functionality to interpret the return codes from the inbound interfaces
Any transformation of data from a source system to a transformation result. The Data Load
Layer only takes the transformed data and loads it into SDL and RDL. This means that all
necessary data transformation steps have to be managed beforehand in the transformation
layer via standard SAP BW technology

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This figure demonstrates the power of mediated message-based communication in

heterogeneous system landscapes in a typical customer landscape

Applications can either be connected directly, which is called point-2-point, or in a mediated way by
using an infrastructure such as SAP NetWeaver PI, for instance. Point-2-point connections require
more effort in the define phase when the system is being set up, and later on at runtime to operate
the different connections. However, they provide performance advantages for the processing of
mass data. Furthermore, backend applications have to provide more connectivity capabilities and
are therefore more complex

The weaknesses of point-2-point connections can be reduced in SAP NetWeaver environments by

using an enhanced approach in which the backend can be configured centrally using SAP
NetWeaver PI and generated into the backend. At runtime, no additional infrastructure is required
to connect the sender and receiver systems

SAP NetWeaver PI, and probably also other message-based middleware tools, do not contain a
long-term storage for source system data. SAP NetWeaver PI has to be provided with data from
source systems either directly via messages or via adaptors such as files

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Message-based middleware technologies such as SAP NetWeaver PI enable a message-oriented

communication paradigm, which is usually part of a service-oriented architecture. Messages are
sent from one or more systems to one or more receiving systems, usually spread across multiple
different heterogeneous platforms. Message-based communication can be used for a loose
coupling of different applications that do not have a direct connection. This enables the setup of
very flexible and easy extensible system landscapes that supports furthermore the almost
seamless or at least easier integration or replacement of new or existing applications. But the main
focus of message-based middleware is mainly used to span multiple operating systems and
network protocols to reduce the complexity of application development

SAPs enterprise services approach also focuses on harmonizing the semantics of the messages
and the application landscape on an industry-wide basis. This helps to further simplify the
integration of applications from different vendors, including in-house development

SAP NetWeaver provides such a message-based middleware with SAP NetWeaver PI, which
supports:
Centralized configuration at configuration time
Mediated or point-to-point communication at runtime
Routing of messages
Mapping (structure, value or protocol mapping)
Integration of non-message-based technologies via adaptors (adaptor framework e.g. file
adaptor)
Predefined SAP enterprise services for SAP applications (e.g. for Bank Analyzer)
Predefined integration content for integration between SAP applications
Batch and near-time capabilities
Pre-configuration via SAP Business Content or 3rd party content
Centralized and harmonized handling of documentation and reconciliation

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SAP integrated banking platform offers the ideal solution:

We offer full integration and data reconcililiation between our banking platform (Operational and
analytical Banking) and the general ledger
by means of:
- Standardized and ready-to-use integration interfaces
- Communication realized via Enterprise Services
- Across system boundaries
- Complete Subledger Functionality

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All components (Operational Banking, Analytical Banking, General Ledger) can be of course SAP or
non-SAP applications, but this slide is based on the assumption, that all components are from SAP.

All components have their own persistency and the communication and data transfer is done with SOA
services.

The integration between the two components was built in a way that the relevant data is transferred from
the operational deposits application to the accounting component. Both systems can be configured and
customized independently. Concerning the integration it is mandatory that both components are
customized consistently, e.g. the mapping of the data flow between the two applications.
IOA covers the end-to-end scenario that begins in the area of responsibility of operational banking,
ending up in analytical banking and ERP General Ledger
IOA integrates Loans, Deposits and Current Accounts in DM/AM with the accounting procedures
and the integrated Subledger in the BA. Furthermore IOA integrates the new General Ledger as part
of SAP ERP Financials based on the newly implemented enterprise services.

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On this slide, you can see very nicely the processes that a retail product goes through, from Operational
Banking to Analytical Banking and then to the G/L

The whole process starts with the payment items and settlement data which are generated in Operational
Banking.

With accruals: This is a special case; here you have two options: If you have use a product according to
actual principle, the accruals are calculated in Transactional Banking and then transferred to BA.

If you have a product that works according to plan principle, the accruals calculation takes place in BA

So when the data from Transactional Banking, that is our payment items and settlement data, is
transferred to BA, the processes in BA take place. The processes in BA are as follows:
Set SDL Time Stamp
Aggregation Processes
Post Business Transactions
Update Secondary Business Transactions
Key Date Valuation

The next step is then the transfer of the data to the G/L

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The SAP BusinessObjects philosophy has always been to give each user persona the right BI tool for the
way they work.

Power users who want to analyze data need a different experience then an executive who wants to track
and monitor key metrics.

In other words, business users have distinct needs and have different IT skill sets

SAP BI portfolio provide business users with access to information through a broad suite of BI tools
on a single, scalable BI platform.

The ultimate goal is to empower all users (executives, analysts, staff, suppliers, and partners) so they
can make better-informed choices and decisions

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Key message: With Crystal Reports, SAP can offer the de-facto industry standard for enterprise
reporting.

What is Crystal Reports

Crystal Reports is a powerful, dynamic, actionable reporting solution that helps you design, explore,
visualize, and deliver reports to thousands of end users to any destination including the web or
embedded in enterprise applications.

It enables end users to consume presentation quality reports with stunning visualizations, conduct onreport business modeling, and execute decisions instantly from the report itselfreducing dependency
on IT and developers.

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Interactive Data Visualization with Xcelsius

Information at a glance with

dashboards

Access attractive (flash-based),

personalized dashboards anywhere

Portal, PDF, documents, presentations

XCELSIUS Overview

Interpret information beyond data

presentation

Easy to use, interactive what-if

scenarios for user empowered insight

Apply the power of innovative design

Intuitive design environment

Pre-built components, skins, maps,

charts, gauges, and selectors

SAP 2010

Key message: Xcelsius is the SAP Strategy for Dashboards and Data Visualization

What is the roadmap for Dashboards and Data Visualization

SAP NetWeaver BI used to offer in the past the SAP BEx Web Application Designer for dashboard
creation.
The Web Application Designer will not be further enhanced and is going into maintenance,
following the standard maintenance strategy from SAP.

However, project Pioneer will offer an OLAP SDK to enable web application design capabilities
Xcelsius is the SAP Strategy for Dashboards and Data Visualization, bringing users a completely
new, innovative experience.
Xcelsius is available today and customer should start today to consider working with Xcelsius.
SAP will enhance the integration of Xcelsius and BW

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Fast search and data exploration with

SAP Business Objects Explorer
Consistent and fast response time

SBO Explorer brings together:

High performance based on BW

Accelerator

Intuitive front-end for information

exploration.

Exploration across mountains of data

The primary use case is searching &

exploring large volumes of data to discover
relationships and uncover root cause

A casual user of BI can gain

Immediate 'insight at the speed of

thought'

Without assistance from IT

SAP 2010 / Page 1

Explorer
Simplicity & Speed of Search
Guided Summarizations & Visualizations
Relevant information displayed first
No training required
In-Memory, Columnar BI
Fast, predictable response times, every time
More reactive to business with faster delivery
Proven, reliable infrastructure

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SAP BusinessObjects Web Intelligence

Ad hoc query, reporting and analysis

SAP 2010

Key message: WEB is for casual end users looking for an intuitive BI tool for ad hoc reporting and
analysis
Openness/multiple sources
A single interface for SAP NetWeaver BW and any other non-SAP data sources, including personal
XL files
Combine multiple heterogeneous data sources in a single report
Merging multiple data sources done by creator of report without IT
Ease-of-use: same environment for design and consumption of interactive reports
Easily build queries with rich semantic layer
Easily analyze data with adapted set of features
Easily format reports with MS Office-like toolbar
Combination of Web + offline
A single interface for all business users: HQ/office, mobile, remote
Share reports with built-in interactivity among all users and enable mobile and remote users to drill
down
Report layout and printing
Add charts & tables with precise positioning or free-form layout
Insert custom calculations directly on the reports
Print multi-page reports with managed page breaks

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