We will cover each of the steps in more details in further blogs. We want to see the simple debit and credit flow through and recognize the disbursement transaction. We will assume no upfront fees and ignore the FX and Currency position related processes. It issues a loan is issued to a customer and disburse the loan to customer. Below is a short representation of different data points needed for the subledger processing:-įor our example we will consider an entity (bank for simplicity sake) which needs to follow IFRS and US GAAP. For simplicity sake we will consider a loan product. Let’s take an example scenario to illustrate the above flow. These can be group reporting ( for enterprise consolidation), SAP Analytical cloud ( for reporting and is highly recommended to be used along side FPSL for both bank & insurance scenario) There are additional components which can also be used but the use case is optional in some cases. There is drill down facility ( to be enabled) which allows drill through for the ledger to the sub ledger postings and ease reconciliation. The Financial product also becomes a subledger for S/4HANA. S/4HANA provides the general ledger layer which can support the organization finances including various subledger like Fixed asset, Accounts Payables etc. probability of default etc.įrom the above diagram you would view the 3 key components of FPSL process are:-ġ) Source data layer- This is layer where you stage data for Subledger processing.Ģ) Accounting rules- This reads the data and post the subledger postingģ) Result data layer-This layer stores the values from subledger posting and certain data from FSDM
![product overview product overview](https://image.slidesharecdn.com/launchsalespresentation-090524141114-phpapp01/95/sample-product-overview-presentation-8-728.jpg)
Some of the example of data can be Counter party, Cash Flow, Business transactions, IFRS 9 credit related parameters e.g. FSDP will receive data from various TP system and this data will be then used for the subledger processing. SAP FSDP is the underlying data layer which can be used as a data service layer to support the subledger. SAP FSDP / Financial services data platform (Data layer) These can be SAP’s own system or third-party system present with Financial service These system records the transactions This represent the source systems which records the trade / front office transactions. Salient point about key components:- Sno. The source transaction layer can be replaced with Actuarial and claims related systems for the Insurance based scenario. Oracle Financials or Peoplesoft GL.īelow is a representation of the SAP’s architecture to support the Financial services industry with Focus on Banks. SAP FPSL can also be used standalone with any other ledger e.g. SAP FPSL is installed as an add-on on top of S/4HANA and links to S/4HANA General ledger. SAP S/4HANA for financial products subledger, Insurance option which is shipped with pre-configuration and template for IFRS 17 and US GAAP LDTI regulation.SAP S/4HANA for financial products sub-ledger, Banking option which is shipped with pre-configuration and templates for IFRS 9 and US GAAP.Having a detailed product subledger allows to manage the complexity and required data parameters within the subledger and allow for an easier adoption of the standard. To comply with the above regulations any organization will need to have system and processes to be in place. US GAAP LDTI or Long Duration Targeted Improvements Revenue recognition related to deferral / accrual of revenue based on performance obligations Scope for the financial instruments and investments
![product overview product overview](https://www.enghousenetworks.com/wp-content/uploads/2022/07/Enghouse-Dialogic-DSI-Protocol-Stacks-Product-Overview-226x337.jpg)
Some of the key regulations (but not limited to) which FS industry must deal with are :- Regulation Previously SAP had a product Bank analyzer and Insurance analyzer for the FSI space.įinancial reporting for FS industry has seen lot of changes in last few years and the complexity will increase. The product came into existence in first quarter of 2019 as part of co innovation project between SAP and Swiss Re.
![product overview product overview](https://image2.slideserve.com/4735217/sap-product-overview-n.jpg)
SAP FPSL is also dedicated multi-GAAP and multi-entity sub-ledger. SAP FPSL or Financial Product Sub-ledger is SAP’s solution to support various Financial services organization to manage finance products as separate sub-ledger and enable acquiring instant financial insight at any level of detail for analytics and reporting. A detailed version of the blog is available on my personal site:. There has been some time since I wrote a blog, and I thought of picking up the solution offering of SAP for Financial services and the Financial services product sub ledger product. Hope you are doing well and keeping safe.