Thank you for tuning in to our blog. We hope that in the previous blog (Part 1), we had helped you understand better how the source data are processed in the Model Assignment and how it creates the Actuarial Granularity which we will be using to finally produce the Best Estimate Cash Flow.
For some of our readers who might have missed it check the blog by alex.marasigan:
How to process the source data to produce the Best Estimate Cashflow – Part 1
In the first post, we concluded on how ACG worklist and RDL are generated. So, let's pick up where we left of and quickly look up on the diagram.
Figure 1. Model Assignment Process: Model Assignment consumes the MA worklists and RDL data to process the data and creates ACG worklist and RDL.
3. Actuarial Granularity Worklist
The ACG worklist created in the Model Assignment process can be viewed in SE16 using the table below and filter using the Source System (Legal Entity).
In the first part of the blog we have shown the ACG worklist and RDL result. The BECF process will use the ACG worklist to generate the best estimate cash flow.
Figure 2. Best Estimate Cash Flow Process: The BECF will process the ACG worklist and creates the BECF worklist and generates the Result Data Layer (RDL) entries. The ACG WL and ACG RDL builds the key information of the BECF. It is necessary to assign all RDL information to create the BECF Worklist.
4. Best Estimate Cash Flow Process
The Best Estimate Cash Flows are calculated in the Estimated Cash Flow Preparation (ECP) process. The ECP process therefore creates a new cash flow for each version of an Actuarial Granularity.
Note: The information and examples provided below are still based on the fixed content SFP 2000 and initial recognition is processed.
There are two ways to process the ACG worklist.
- Via PaPM Environment– This step gives us the option to check if we can see the BECF result and use it for debugging purposes and is not yet written in Result Data Layer (RDL)
- Via Calculation and Valuation Process Manager (CVPM) – This step allows to process ACG worklist and check if there are created BECF worklist and the results are written in the RDL table.
4.1 Checking BECF result inside the PaPM environment
4.1.1 In the working environment, choose the function ID 40180 (Bring Together and BECF
Cashflows)
Function
Function details
4.1.2 Choose Run button and the Run Manager window will appear
4.1.3 Navigate to Process Tab and provide the Process.
Process: Default ECP Process (DEFAULT) – BECF Calculation (00231)
Do not forget to assign a process on the Process field of the process tab. Failure to assign a process to this field will result to an error because this process will handover the parameters necessary to steer functions within ECP.
4.1.4 Navigate to Remote Call Tab and provide the Package Selection.
Package Selection: BA1_CR0SRCSYS=(BA1_CR0SRCSYS = 'QAMB_001') where QAMB_001 is the source system
Note: Every Space and quote sign must be exactly how it is in the example above. Incorrect selection will not return any results.
4.1.5 Choose Run and wait for the application result window to appear.
Note:
- If there are no results, you might need to recheck if there are ACG worklist generated.
- The results shown here are not yet written in the RDL. But you can see if the data are correct based on your expectation.
- To write the result in the RDL you must process the worklist via CVPM.
4.2 Processing the BECF via CVPM transaction
When BECF CVPM is executed the BECF worklist (/BA1/BR_CAP_BECF) is generated together with the following RDL:
- Exposure Period Split aligns the premiums and commissions with the risk exposure of the contract, providing the information as to which part of an expected premium payment covers claims of a certain period
- Change Driver Result defines which action is performed on the cash-flow. (i.e. Contract Modification, Experience Variance: Model-Driven, Experience Variance (contract based), Assumption Change and termination)
To process the BECF, please follow the steps below:
4.2.1 Go to SAP Menu > Financial Product Subledger > Preparatory processing > Estimated Cash Flows > Calculate Best Estimate Cash Flows or launch transaction code /BA1/FJ_ECP
4.2.2 Calculate Best Estimate Cash Flow window will appear, fill out the Source System and Step Sequence
4.2.3 Choose the Execute button or press F8
4.2.4 Once it is done with the processing, you may view the result via the results viewer or Results Data Layer (RDL)
5. Check the Result
5.1 Best Estimate Cash Flow Result (BECF RDL)
5.1.1 Go to SAP Menu > Financial Product Subledger > Source Data > Result Data Layer or
launch transaction code /BA1/HW_RESULTVIEWER
5.1.2 Display Result Data window will appear. Fill in the following fields
Note: Specify the RDA and Results view of the RDL you wish to check the result
In this example, we are checking the Best Estimate Cash Flow.
Results Data Area: SAFI
Results View: S_BECF
Two- Dimensional Versioning
Key Date From:
Key Date To:
All Version in Range is checked.
Selection
Maximum Number of Hits: ‘Blank’
Note: To ensure that all entries will be shown in the result.
Dynamic Selection
Source System: ‘QAMB_001’
5.1.3 Choose Execute button or Press F8. The Display Results View: Cash Flow window will appear.
Note: The result view shows the same data that we processed on our environment
In Addition, if there are manual upload for Best Estimate Cash Flow and/or manual upload for Exposure Period Split
To upload it, the following inputs are needed
To process it, data will undergo Model Assignment and Best Estimate Cash Flow process.
- Processing the Model Assignment
- Use the same steps which was discussed in steps 2.2 of Part 1 of the blog. Take note of the following;
- The step sequence should be executed in the following order
MBC – Manual BECF
MES – Manual EPS
ANA – Analytical Attributes
When the MBC Step sequence is triggered, it will look in to the ANAT worklist to check if EPS indicator (/BA1/CRPEPSIN) is set (X). If set, the MES step sequence will be triggered and processed together with MBC.
Note: Even though MES has been processed through MBC step sequence, processing MES and ANA are mandatory steps to delete the worklist of EPS and ANAT.
- ACG worklist will be created. One entry each for BECFM, EPSM and ANAT.
- It is also possible to process manual BECF only and without EPS. For this process, an ANAT is not required and only MBC should be triggered.
- Processing the Best Estimate Cash Flow
- Use the same steps which was discussed in step 4.2 of this blog. The Best
Estimate Cash Flow will pick up the manually uploaded BECF/EPS and store the
results to BECF/EPS RDL tables.
Now we have generated the Best Estimate Cash Flow, you can now use it as an input to run the accounting process.
Derived Cash Flow (DCF) depicts a possible way to calculate Best Estimate Cash Flows or time series of amounts, based on results from the ECP process. It will only be generated if the DCF indicator is set in the analytical attribute and cost rate is provided.
The Derived Cash Flow can be generated via the BECF CVPM. To process the DCF, please follow the steps below:
- Go to SAP Menu > Financial Product Subledger > Preparatory processing > Estimated Cash Flows > Calculate Best Estimate Cash Flows or launch transaction code /BA1/FJ_ECP
- Calculate Best Estimate Cash Flow window will appear, fill out the Source System and select Step Sequence, DER and execute
The BECF worklist (/BA1/BR_CAP_BECF) that was generated during the BECF CVPM processing is consumed and the RDL below is written.
There you have it! We have shared with you the steps and procedure of:
- How the source data was processed to create Actuarial Granularity and then Check the ACG worklist and RDL (Part 1)
- How ACG was processed to create the Best Estimate Cash Flow and then Check the BECF worklist and RDL (Part 2)
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