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Product and Topic Expert
Product and Topic Expert
SAP S/4HANA for Financial Services supports the modernization and financial transformation efforts in the financial services industry, especially Banking and Insurance, throughout the entire value chain from value-to-customer to value-to-organization and value-to-business user.

In this blog series, I will give you an expert view, from product experts to product experts, of some selected highlights for Industries of our SAP S/4HANA 2021 release. All these innovations will also be available for SAP S/4HANA Cloud, private edition.

The blog is built as a series of 6 parts and present the key highlights for:

  • Part 1: Consumer: Consumer Products and Fashion and Vertical Business

  • Part 2: Consumer: Retail and Wholesale Distribution

  • Part 3: Financial Services (Banking and Insurance)

  • Part 4: Public Services

  • Part 5: Energy & Resources

  • Part 6: Discrete

In this third blog, you can find information on functions that are used by Banking and Insurance.



Banking solutions in SAP S/4HANA manage the complete lifecycle of various financial products in the following areas:

  • Deposits (for example, current accounts, savings accounts, and fixed-term deposits)

  • Loans (for example, mortgage, consumer, policy, and commercial loans)

  • Collaterals (for example, real estate, ships, cars, security accounts, and their relationships to receivables)


Collateral Management:
Integration and data retrieval capabilities for the collateral management system

New functionality in the SAP S/4HANA 2021 of SAP Collateral Management for Banking software (FS-CMS, collateral management system):

Extraction of collateral management system (CMS) master data

  • CDS views with a change data capture (CDC) for master data–related tables, which supports an initial load and delta load; delta load also allows extraction of deleted records

Extraction of CMS calculation data

  • A new transaction that stores the calculation-related data for various objects

  • CDS views with CDC for calculation data–related tables, which supports an initial load and delta load; delta load also allows extraction of deleted records

Extraction of BW-ILM notifications for archived CMS data

For more information, see CDS Views for Collateral Management (FS-CMS)

Collateral Management:
Data Calculation

The new Data Calculation report enables you to store the calculation data and extract it using extraction-enabled CDS views. You can use this report both for the initial and delta calculation of data.

For more information, see SAP Note 3076563 Information published on the SAP site and the SAP Help Portal.



Insurance provides advanced claims, policy, and billing management capabilities insurers need to improve efficiency, profitability, and customer loyalty. It enables insurers to implement best-in-class business processes.

Policy Management: With Policy Management for Insurance, you can map the whole life cycle of an insurance contract, starting from the creation of an application, through policy issuance and ongoing contract maintenance, right up to the termination of the contract.

Claims Management: With Claims Management for Insurance, you can manage the entire claims process, from the first notification of loss to claims adjustment and financial reporting.

Collections and Disbursements (FS-CD): With Collections and Disbursements for Insurance, you can perform all collection and disbursement tasks across different lines of business. These tasks include open item accounting, payment processing, incoming payment processing, correspondence, and dunning. You can also map broker accounting and coinsurance business.

Incentive and Sales Force Management: With Incentive and Sales Force Management, you can manage your sales team effectively. The possibility to define clear and transparent models and to introduce new products or distribution channels in a short period of time translates into sales activities that are fully aligned with your corporate strategy.


Policy Processing:
SAP Fiori app for policy inquiry in policy management

The Policy Inquiry app has been enhanced by replacing the unmanaged query approach with the managed query approach using real-time CDS views. It also contains new features, such as the predecessor policy details, the contract status for the selected policy, and information about multiple contracts associated with a policy.

You can check the multiple contracts for a policy or multiple vehicles associated with a contract in the search results on the home screen. The new fields Predecessor Policy and Contract Status are displayed in the app in the header sections of the Policy Details and Contract Details screens respectively. You can click the link available in the form of policy number to view more details of the predecessor policy.

Picture 1: Consistency in the technology stack in core insurance SAP Fiori apps since all are now using CDS views.


Policy Processing:
Surcharge/Discount for Calculation of Anonymous New Business Quotation

The remote-enabled function module (RFM) for calculating an anonymous New Business quotation (/PM0/ABT_SVC_NBQUOTE_CALCULATE) can now also return information about a surcharge or discount.

Therefore, an external system (such as SAP Commerce) can determine, for example, the amount for a discount that the customer has entered on the SAP Commerce customer portal in the form of a coupon and that must be included in the calculation of the anonymous New Business quotation.

Additional Details

The new exporting parameter ET_SUPDC was added to RFM /PM0/ABT_SVC_NBQUOTE_CALCULATE. This parameter returns the information about the surcharge or discount to the calling system.

To ensure that the surcharge or discount amount is returned, this amount must have been determined correctly by the product engine during the calculation of the application. This means that the calculation logic in the product engine may have to be adjusted so that this amount is determined during the calculation of the application and returned to Policy Management.


Policy Processing:
New sample product for German home-content insurance in policy management

With this release, a new P&C product for German Home Contents Insurance has been added to the sample product library content. The product is built following the modern (current) features of a typical home contents insurance product in Germany. The product is based on the product engine in SAP Product, Quotation, and Underwriting Management.

Additional Details

The new product is called Best Personal Protection:

  • It is based on the German market.

  • It covers risks located in Germany.

  • It offers three plans/variants: Basic, Advanced, and Best (plus optional coverages).

  • It is enabled for the quotation and underwriting process in FS-PQM with a side-by-side comparison of the benefits and premiums offered by each plan.

  • It is enabled for changing business and other business processes in FS-PM.


Policy Processing:
New RFM to Create Subcoverages in the "Change" Business Process

The new remote-enabled function module (RFM) /PM0/ABT_SVC_COVCPCO_ICL (Create and Process Subcoverage) has been added to Policy Management. This can be called by an external system to create sub coverage in the Change business process.

Additional Details

The RFM is based on the Change business transaction P_B_S_COVCPCO_ICL (Create and Process Subcoverage) and enables you to create additional sub coverage for an existing coverage of a policy on a selected effective date.

For example, you can use the new function module to create new sub coverage for policies that already affect in-force business in Policy Management from an external application without using the user interface in SAP GUI. For more information, see the system documentation for the function module.

You can use the new Business Add-In (BAdI) /PM0/ABT_SVC_COVCPCO_ICL_BADI to take account of your own fields in addition to the existing fields when you create the sub coverage from an external system.

Policy Processing:
Logging of Change Information for Registration/CIC/IIS

With SAP S/4HANA 2021, you are now able to use this function for registration notifications or CIC/IIS notifications to log who made the most recent changes to the notification. This innovation is localized for Germany and Austria.

A new tab element was added in Registration that logs the change information of the respective notification. The following information is logged here: status of the notification, processor, change date, Automatic Processing checkbox.

Additional Details

The system always writes a new entry in the change information when the status of a notification changes. If other changes are made to the notification, an entry is written only if the current processor is not the same as the last processor. This occurs in the background as well as in the dialog. The system sets the Automatic Processing checkbox for background processes that were not triggered by the user in the dialog. The entry is only written when it is saved.

Effects on Existing Data

The Last Changed By and Last Change Date fields previously displayed in the dialog (registration) or on the Change Information tab page (CIC/IIS) are now displayed on the new tab element.

Effects on Data Transfer

Notifications that were created before the 2021 release are not migrated separately. When the notification is displayed, the most recent change information is displayed on the tab element. As soon as the notification is saved for the first time, the system writes an entry with this information in the change information table in the database. If the notification is saved without having been changed, only this migration entry is persisted. If a change is made to the notification, the migration entry and, if necessary, an additional entry for the change is persisted. Whether the additional entry for the change is written depends on whether the specified criteria for creating an entry are fulfilled.


Policy Processing:
Control balance transfers for vehicle changes

With SAP S/4HANA 2021, you can use this function when you execute a vehicle change to decide whether the system is to transfer the balance to the target contract. When you use this function, the setting for the balance transfer in the Customizing activity Makes General Settings for Vehicle Change is overridden.

Additional Details

When the Vehicle Change business transaction is executed, the system displays the Transfer Balance checkbox in the New Business and Change business processes after you have transferred the contracts as source contracts to be settled. The system fills the field with the value set in the Customizing activity Make General Settings for Vehicle Change. You can change the field and thus override the Customizing setting.

You can also override the Customizing setting for the balance transfer in background processing:

  • The field BALTRANS_CD (Transfer Balance) is provided in the parameter IT_AMWAASPROD of the application interface for vehicle change (/MVA/AMW_APIF_CHGVEC).

  • The field BALTRANS_CD is provided in parameter IT_SVC_ASPROD of the RFM New Business Application with Vehicle Change (/MVA/AMT_SVC_INPI_CHGVEC).

  • When the BTS date Vehicle Change is scheduled, you can supply the data container for vehicle change ASPROD with the field BALTRANS_CD.

You can fill the field in the abovementioned background functions with “1” (“Transfer Balance”) or “2” (“Do Not Transfer Balance”). If you do not make an entry in the field, the system decides on the balance transfer based on the Customizing activity Make General Settings for Vehicle Change.


Policy Processing:
Integration to Experience Management solutions from SAP and Qualtrics for policy management

With this release, we have the integration to Experience Management solutions from SAP and Qualtrics by policy management in SAP S/4HANA by providing:

  • New authentication OData service from policy management to prevent users from extracting data using random policy numbers:

    • Service based on an FS-PM CDS view, using policy number, application ID, and business process for authentication

    • Verification of the application ID against the supplied business process and policy numbers using contract journal and policy tables

  • New correspondence type BM60 in the policy management system for e-mail creation and to leverage correspondence-customizing functionality in policy management for definition per insurance product and insurance process

  • New business add-in (BAdI) to enable enhancement of the survey URL.

For more information, see also Send a Questionnaire via an Experience Management System


Claims Processing:
Improved integration from the financial services accelerator to claims management

Improvements to the existing integration functionality between the financial service accelerator (FSA) based on SAP Commerce and claims management:

  • For first notice of loss (FNOL) by a customer through the customer portal, an extension of document upload functionality to include additional file-extension types such as JPEG, PNG, and DOC as well as the ability to upload multiple documents. For example, insurance customers can upload their documents by logging on to the customer portal provided by SAP Commerce and view these documents in the Claims Management (FS-CM) backend.

  • Improvement of the existing integration functionality to replicate claim information to the customer portal, enabling delivery of more-detailed claim information to the customer such as sub claim details and payment details.

Picture 2: Provide more real-time updates to customers during key claim process steps such as sub claim and payment creation.

For more information, see Display of Specific Claim Data for External Portal.


Claim Processing:
SAP Fiori app “First Notice of Loss” for claims management

A completely revised version of the First Notice of Loss app replacing the existing app, which will be deprecated

Inclusion of all of the functionality of the original app, for instance:

  • The ability for insurance customer service representatives to capture the first notification of loss data when an insured party calls to report an auto accident

  • Support for capturing the details of the loss, vehicle damage, witness data, and notes

  • Provision of information (name and phone number) about the assigned claim handler once the claim is created and the claim handler is assigned

Delivers the following new features as well:

  • Payment creation (no-touch claim processing)

  • The capture of a third-party vehicle, an injured person, and claimant details

  • Assignment of service providers such as repair shop, towing service, and car rental service.

Picture 3: Capture data in a flexible sequence that accommodates the order in which the reporter provides the claim information.

Remark 1:

The Fiori app Notice of Loss with the Fiori ID F2846 is deprecated with SAP S/4HANA 2021. The app is still available for use but is planned to be removed in the future release. Use the new Fiori app First Notice of Loss with the Fiori ID F5750 instead.

Remark 2:

The new First Notice of Loss app has the following additional features and benefits compared to the old Notice of Loss app:

  • The app is based on the ABAP Restful Application Programming Model (RAP).

  • The app has a new feature to search for existing claims based on:

    • claim number

    • contract

    • date of loss

  • The app has a new feature to perform straight-through processing of certain benefits based on the incident type of the claim.

  • You can select external service providers (for example Repair Shop or Towing Service) configured in the system. The app also provides an option to enable a detailed geo-coding program for accurate location mapping of the service providers.

  • The app has new structured facts capture (SFC) to capture details on the origin of loss and the loss location.

For more information, see First Notice of Loss (FNOL).

Claim Processing:
SAP Fiori apps for maintaining all-important claims information in claims management

Support for changes to claims by insurance agents or claims clerks through a set of SAP Fiori apps:

  • One central cockpit for changing claims in the SAP Fiori app (variant) "Claims Inquiry and Update Claim" with improved and extended functionality

  • Five new SAP Fiori apps for maintaining different subjects of a claim:

    • Maintain Damaged Objects: see here for more information

    • Assign Performers: see here for more information

    • Maintain Tasks: see here for more information

    • Maintain Reserves: see here for more information

    • Maintain Payments: see here for more information

  • Improvements to existing SAP Fiori apps for changing claims:

    • Update claims-header information

    • Maintain sub claim information

  • Intuitive navigation between the central cockpit and the separate apps

  • Apps based on SAP Fiori elements using the ABAP RESTful application programming model to access claims management in back-end systems.

Picture 4: Improved usability while maintaining insurance claims.


Thanks for reading this blog post. Stay tuned!

If you are also interested in other Line of Business, I would like to draw your attention to my link collection blog – The Link Collection

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For more information on SAP S/4HANA Cloud and SAP S/4HANA 2021, check out the following links: 

  • SAP S/4HANA release info: sap.com/s4hana

  • SAP S/4HANA Community here

  • The Link Collection for Product Compliance here

  • SAP S/4HANA PSCC Digital Enablement Wheel here

  • Inside SAP S/4HANA Podcast here

  • Join the SAP S/4HANA Movement

  • Best practices for SAP S/4HANA here

  • Help Portal Product Page here

  • Feature Scope Description here

  • What’s New here

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