SAP Reserve for Bad Debts (SAP RBD)

The market standard for efficient impairment management in the credit business.

Risk monitoring and provisioning in the credit business presents financial institutions with a complex challenge.

As a key part of the SAP for Banking industry solution, SAP Reserve for Bad Debts (SAP RBD) facilitates this task.

The SAP RBD software solution is developed and maintained by iBS on behalf of SAP.

Benefits

More Efficiency, More Transparency

SAP RBD provides a comprehensive set of features that facilitate the risk provisioning process and ensure that you always have exact information to assess risks.

Central management of all risk provisioning activities in one application
Daily overview of your risk provisioning positions and their development
Increased efficiency due to significant reduction of the manual effort
Real-time transfer of all changes that are relevant for the balance sheet to financial accounting
Automatic provision of all data that is relevant forinternal and external reporting
Multi-GAAP support for international (for example, IFRS 9, IAS 37/39) and local (including German, Austrian, Canadian) accounting principles
Seamless integration into the system landscape with interfaces to relevant systems

Reliable Standard Software, Fully Integrated into SAP ERP

Replaces stand-alone software and therefor reduces the complexity of IT-systems
Connected to all relevant SAP Banking modules, interfaces to external systems
Ensures data consistency within SAP
User-friendly with familiar SAP user interface

Made for international use

Flexible adaptation to local rules and peculiarities
Supports various languages, e.g. German, English, Chinese, Portuguese, Russian, Hungarian, Romanian, Slovak, Ukrainian. Additional localizations are available on request.

Features

Efficient Risk Provisioning Management for Your Credit Business

SAP Reserve for Bad Debts features all required functions for risk monitoring, risk provisioning and risk realization in one central application.

Credit risk provisioning in accordance with IAS39 and IAS37 as well as German and Austrian GAAP (HGB and UGB/BWG).
Flat-rate risk provisioning depending on the risk classification (e.g. dunning level)
Calculation of risk provisions based on predefined, customizable rules
Real-time transfer of all changes that are relevant for the balance sheet to financial accounting
Automatic data provision for internal and external reporting

ECF procedure:
Formation of Impairment using the Expected Cash Flows

The Expected Cash Flows procedure (ECF procedure) enables the claims handler to calculate and manage impairments via defined expected cash flow and keeps the manual effort required to a minimum.

This procedure offers extensive functions for modeling the expected cash flow - based on contractual cash flows, special payments, and the expected revenue from the liquidation of collateral.

The ECF procedure particularly supports:

Impairment Management using defined expected cash flows
Consideration of probability-weighted scenarios
Principle of dual GAAP or single-GAAP valuations
Impairment management for on-balance-sheet and off-balance-sheet transactions
Calculation and position management at single-transaction level

IPX procedure:
Manage impairments using loss rate-based methods

The Impairment Processing Extension (IPX procedure) features a flexible process framework for modeling loss-rate based impairment methods. The extension is specially designed to handle high data volumes using parallel processing procedures.

The IPX procedure includes processes to assign single transactions to different impairment categories (e.g. stages/buckets) as well as processes for loss-rate based impairment-calculation (by using EAD, LGD, PD, for example), transfer between the impairment categories and position management of the corresponding risk provision.

Das IPX procedure particularly supports:

Impairment Management using loss rate-based methods
Calculation of Simulation-Scenarios / Stress-Scenarios
Principle of dual GAAP or single-GAAP valuations
Impairment management for on-balance-sheet and off-balance-sheet transactions
Calculation and position management at single-transaction level

Integration

Seamless Integration into SAP ERP

SAP Reserve for Bad Debts is part of the industry solution SAP for Banking. The software is delivered as SAP component FS-RBD with the application component EA-FINSERV (ERP) or S4CORE (S/4HANA). SAP RBD is integrated into the maintenance and release processes of the SAP.

Linked to All Relevant SAP Components

SAP RBD is implemented as a central subledger with separate master data and flow data management. The application is connected to all SAP components that are relevant for risk provisioning:

SAP Loans Management for Banking (SAP FS-CML)
SAP Collateral Management for Banking (SAP FS-CMS)
SAP Deposits Management for Banking (SAP IS-B-BCA)
SAP General Ledger Accounting (SAP FI-GL)

In addition, SAP RBD features standardized interfaces to link external systems.

Implementation

Flexibly Adjustable by Configuration

SAP RBD can be flexible parameterized to adapt to your institution's specific needs.

Our Expertise for Your Success

SAP RBD is a solution developed and maintained by iBS on behalf of SAP. On request, our experienced solution specialists, together with selected partners, help you to implement the solution and adapt it to your individual requirements.

With their technical and professional expertise, they form the link between departments, IT, and external service providers. This, together with the iBS test factory, which actively supports the planning, execution, and assessment of testing activities, ensures successful project outcomes every time.

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