In this article, we discuss the banking loan disbursement process in SAP. We create Contract to manage Loans in SAP Loan Management, which in process need to disburse, once it is approved by decision making body.

After making decision on the contract and creating contract, we can take the decision to disburse the contract. SAP IS Banking, allows us to assign one user related to release of the contract. We can either do full disbursement or partial disbursement of contract amount. Usually management or the assigned user can take the decision.

Basically interest is calculated as per the disbursement amount. If we are partially paying the amount then interest is calculated on that amount only. Based on the payment type full or partial, disbursement sets a status e.g. F, P.

We can change the disbursement data manually. Only authorized user can do this kind of activity. Some conditions are set for change in disbursement. When we are changing contract data, we have to release disbursement again.

We can specify payment date, payment method, currency, bank details disbursement percentage etc.

Following are other additional functions in Disbursement screen:

  • Incidental cost – One time charges such as Interest, processing fees, admin charges.
  • Drawings – Allows third party to withdraw the disbursement amount.
  • Overview of drawing – Shows the cash flow / list of drawings for the loan.
  • Overdue Items – With this function we can identify the open items of that customer/borrower for contract.
  • Post – After entering all the relevant data you can post the disbursement and the corresponding FI entry will automatically post.


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SAP Easy Access Path for Disbursement

SAP Disbursement

Accounting -> Bank Application -> Loan Management -> New Business -> Mortgage Loan -> Contract -> Disburse.

Please send us your questions, comments or assistance, and our team would be glad to assist you.

By Manish Agarwal. (on behalf of SAP Consulting Team)

Apprisia Solutions
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