Angeline Hazel Henry Payments that are to be initiated are grouped together in a payment run and these batches are triggered for workflows. SAP BCM monitors both the incoming and outgoing workflows to track the cash flow within an organization. Therefore, the banking process is streamlined with Fiori reports for a clear communication with the bank.
What is SAP Multi-Bank connectivity
It is a cloud-oriented solution offering a multi-bank digital channel between SAP as well as banks. The advantage of MBC solution lies in its embedded SWIFT connectivity. Many prefer this solution since it has incorporated several security measures.
Who are eligible to use SAP MBC?
There are a certain set of SAP customers who are eligible to move on to SAP MBC. They are:
What new with SAP MBC?
Many customers will be able to interact with different banks on a regular basis. You can send and receive multiple files from bank.
When you want to successfully communicate with a bank, you need to establish a robust communication with it. This is possible with SAP MBC.
Bank communication was a norm even before the introduction of SAP MBC. But when SAP MBC was introduced, bank communication has been cost-effective and convenient.
The payment program (F110 or F111) runs and allows the download of payment media file that can be uploaded and to an intermediate system which helps in the transmission of the payment file to and from the bank. This payment file generated is in the bank’s required format (MT100 or ISO 20022 XML). This process also allows encryption of the payment file before transmitting to the bank for payment.
SAP Bank Communication Management has the following benefits
Payment workflows via SAP Bank Communication Management can be between SAP system or non-SAP system.
Payment Scenario between non-SAP system
If payments are processes from a non-SAP system, then the payment media file that is generated is the bank’s required (ISO 20022 XML) format is sent for approval through SAP BCM system.
The below flow represents a new offering for Payment Factory to implement a non-SAP payment
The accounting entries are tracked in sources system (non-SAP), only payment is processed via the SAP BCM using BCM Connector.
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The process steps for implementing this non-SAP Payment are as follows:
Payment Scenario between SAP system
If the payments are processes in an SAP system then the payment liabilities are created in the SAP system and the corresponding processing of these payments is also done in the SAP system with the help of SAP Bank Communication Management for workflows. The approved file is then digitally encrypted and sent to bank.
The processing of SAP BCM can be achieved via the scope item J60 in SAP S/4HANA Cloud
SAP BCM can be achieved as a scope item activation when you use SAP S/4HANA Cloud. This scope item is J60 (Accounts Payable) and 1EG (Bank Integration with File Interface). The image below shows the process flow of SAP Bank Communication Management achieved through payment program in SAP S/4HANA Cloud.
Post the payment program step the scope item 1EG (Bank Integration with File Interface) can be used to complete the payment medium download and upload of bank statement steps.
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