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Automate Bank Payment Processing with SAP Bank Communication Management

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Overview of SAP Bank Communication Management
  • | SAP FICO Consultant
SAP Multibank Connectivity is a SaaS product that helps establish connection between the various banks and organizations that make payments to them. The payments are tracked automatically with their transfer status to provide notification on its success. It helps connect the financial institutions with the corporate through secure network with the support of SWIFT.

SAP MBC acts as a single point corporate-to-bank connectivity increasing the visibility and control over all the financial transactions that take place periodically. In general, the daily essential financial transactions become difficult when there are too many exchanges between the bank and the corporate. Therefore, automating these transactions with a single point connectivity helps in tracking all the changes with end-to-end encryption through SWIFT.

This entire solution of payment tracking with SAP Bank Communication, and workflow approves can be achieved within your organization through two elements, namely:

  • Digital Core – this is the SAP ERP system or SAP S/4HANA system
  • SAP Multi-bank connectivity or SAP Bank Communication
SAP S/4HANA involving Multi-Bank Connectivity

SAP Multibank Connectivity has the following benefits

 

Digital Core (SAP ERP or SAP S/4HANA) – This is where the bank master can be maintained, workflows for the payments are triggers and approvals are tracked. The digital core allows triggers payments and monitors the payment end-to-end to detect any fraud.

 

SAP Multibank Connectivity – Provides transaction routing capabilities with the highest security standards This relates to the core digital via web services. MBC is installed via SAP Cloud Platform Interface and the maintenance is taken care by SAP Bank Communication upgrades to give an efficient end-to-end payment process within your treasury.

 The key processes covered by Bank Integration with SAP Multibank Connectivity is as follows:

 

  • Securely connect with encryption between SAP S/4HANA or SAP ERP (Digital Core) and SAP Multi-Bank Connectivity and the connected financial institutions/banks with SAP Bank Communication
  • Forward payment instructions to banks in local required format
  • Receive status notification for payment instructions to tract every payment
  • Receive bank statements in standard formats namely MT940, CAMT.053 and BAI2Receive lockbox messages BAI2

SAP MBC can be procured as a scope item activation when you use SAP S/4HANA Cloud as your digital core. This scope item is 16R (SAP Multibank Connectivity). The image below shows the process flow of SAP Multi-Bank Connectivity in SAP S/4HANA Cloud. There are two steps in this process

 

  1. Bank Integration with Multi-Bank Connectivity (Outgoing Integration) – This creates the payment medium and send the payment instruction to MBC
  2. Bank Integration with Multi-Bank Connectivity (Incoming Integration)- This imports the electronic bank statements to update the cash management with SAP Bank Communication

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