Shared or Co-Liabilities is an important topic for public sector organizations to collect outstanding and overdue invoices from all involved debtors which are liable for these outstanding debts. The reason for shared liability is founded in general based on public laws e.g. Co-Ownership on properties, companies ….. but can also be relevant in case of given warranties or other obligations such as child support.
To handle shared liabilities in PSCD/FICA it is necessary to distribute the original overdue main obligations on the accounts from the involved Co-Debtors to allow dunning and different collection activities for each involved account independently. On the other side every payment, write off on the original or distributed posting should be consider within the whole process and the posting of multiple revenue amounts into the general ledger must be avoided.
The Co-Liability Record gives a detailed overview over all contained items and the corresponding clearings, as well as all related correspondences.
Co-Liability is available in ERP EhP8. For further information please check the SAP documentation.