SAP PS with financial Instutions.

[Former Member]

Hi Experts,

A client funds to other companies ( as a lone ), The funding is based on installment wise (depending on the part of work and progress of work).

As per PS concern,

Ii have to sub divide the project in WBS and activities. Allocate budget and activate the AVAC, Further to have a track on loan made i have to plan cost through cost Activities. which actual posting will be done directly through FI.

My doubt ate

1. Please correct me with the procedure...

2. How the recovery will be reflected through PS?

3. How can i Plan cost (loan sanction) based on completion stages?

[Former Member · Accepted solution]

Hi,

As I understood you can use service activities where you can do SES as per the completion of work

thanks & regards,

sam

[former_member230675]

Your Query is not clear..

SAP PS is designed to handle projects, I do not think it is suitable for Loan Management. There are other modules available in SAP for Handling Loans such as..

SAP Banking - Loans Management

FSCM - Treasury and Risk Management

[Former Member]

Hi Abdul,

Scenario is just like Loan Management.

1. But here the thing is the client is not purposely in Banking sector, They have this business apart from their main business.

1. They want to adopt the procedure like:

Estimation or verification of the estimation (provided by their customers) has to be done (Just like PS estimation/Cost Planning) Based on this breakup of the Project they will allocate the loan amount (BUdget) to each WBS/Work package. Based on Progress and workpackage they will partially issue the loan amount in stages...

Now, Can we adopt PS for this scenario? If No then what are the other options, If Yes then what will be the process flow.

[former_member230675]

According to me using PS for this scenario is purely a work around.

Implementing only the Loans Management is the correct solution, or do this work around through FSCM.

[Former Member]

Hi

Can brief in more business perception details regarding your client and loan receiver (customers - as you say).

1. What is your Customers line of business?

2. What kind of projects being executed by your customers (investment or customer)

If your client is interested to fund the projects executed by customers, they can extend the loan fecility by evaluting the proejct progress as agreed mutually. Your client must be disbursing amounts based on percentage of completion/packages as agreed mutually.

Now the point is extending the loan and recovery is a different aspect and can be executed either in SAP or outside of SAP.

As far as execution of project, its not an issue and this can be executed using PS module and but not recoveries of loans through PS.

Regards,

PSR