Personal Insights
Activation of central payment after Go-Live/Next phase
This blog is intended for project members responsible for implementing/ Activating Central payment in Central Finance System. this blog explains the various steps to follow and the special Considerations for Taxes along with pre-requisites.
Introduction:
We found so many customers are facing issues to implement Central payment functionalities in the existing Central finance system in the below cases.
- Activation of central payment in the existing Cfin system
- Activation of central payment in Next phase
- Time Gap between Central Finance GO live, and Activation of Central Payment because of Month end activates (Large scale companies)
- Adding of New Company codes after Go live
- Merging of Company codes (Central payment not activated Earlier)
- Management Decision to activate Central payment in the later stage .
In all the above cases considering as Central payment is not activated and we started out day to day activities in the central finance system.
What is Central payment:
As per Sap “Central Payment for SAP Central Finance allows you to make centralized payments and perform centralized clearing activities in the Central Finance system instead of each source system”
In layman language, If you activate that are activate central payment For company codes, the invoices posted in the source systems are technically cleared. The invoices are replicated to the Central Finance system and are paid in Cfin system.
Prerequisites:
Please test the scenarios in your in your sandbox or quality system before activating in the production system.
- Test Source system must be connected to the Target System
- RFC connection must be there
- Configuration must be in place
- Central payment Notes must be in place.
- AIF/SLT/MDG in place (optional)
Business scenarios
Existing:
- Posting Vendor/Customer Invoice in the Source system
- Payment in the source system
- Clearing in the source system
- Replication of Invoice, payment and Clearing Documents in the target system.
After Activation of Central payment:
- Posting Vendor/Customer Invoice in the Source system
- Set Technical clear of Invoice automatically in the source system and open item in the target system
- Central payment in the target system
Process to follow
- Run the Program FIN_CFIN_APAR_SET_TECH_CLR or Transaction Code FIN_CFIN_TECH_CLR to set technically clear for all open items (Historical) in the source system for the company codes you want to activate Central payment.
- Activate central payment for the respective company codes. (run Program FINS_CFIN_APAR_CPAY_SWITCH)
- Post day to day Transactions.
Special Instruction
The Program FIN_CFIN_APAR_SET_TECH_CLR only set technical clearing for the below historical open items In Central Payment.
- Accounts receivable
- Accounts payable
- Deferred tax accounts
- Cash discount clearing accounts
- Bank clearing accounts (This requires configuration if bank clearing accounts are to be cleared.)
Important Notes for Central payment
2346233 – Central Payment for SAP Central Finance: Pilot Note for Activation of Central Payment |
2292043 – Central Finance: Enable Clearing Transfer in Source System |
2623514 – Central Finance and Withholding Tax – SAP Notes |
2509047 – Central Finance: Required SAP Notes to support Tax Reporting out of the Central Finance System |
2184567 – Central Finance: Frequently Asked Questions (FAQ) |
2474760 – Central Payment: SD Down Payments |
2683870 – Central Payment: MM Down Payments |
2727394 – Handling of Historical Open Items |
2827364 – Central Payment Consulting Note |
Test Scenarios.
ECC | S4 | |
Create new invoice for company code XXXX | Vendor- 1900021710 | Vendor Invoice Replicated- 1900000003 |
Customer- 1800000850 | CustomerInvoice Replicated – 1800000001 | |
Payment/Clear invoice Posted above | Clearing Doc (Vendor)- 1500002035 | Clearing Doc Replicated(Vendor)- 1500000000 |
Clearing Doc (Customer)- 1500002030 | Clearing Doc Replicated((Customer)- 1400001244 | |
Activate Central payment | NA | Yes |
Run Program FIN_CFIN_APAR_SET_TECH_CLR | Yes | NA |
Create new invoice for company code XXXX | Vendor- 1900021715 -Technically cleared | Vendor Invoice Replicated- 1900000004 |
Customer- 1800000855 -Technically cleared | Customer Invoice Replicated- 1800000002 | |
F110 in S/4 for company code XXXX for the above Invoices | NA | Clearing docs (Vendor)- 1500000001 & 1500000002 |
NA | Clearing docs (Customer)- 1400001245 & 1400001246 |
Conclusion:
This blog is very useful for all the customers and Consultants who are planning to implement Central Payment after the S4 system golive or in the next phases .it Covers the Consideration of Understand the supported various business scenarios in activation central payment .
Thanks Dipti for the quick and crisp blog.
I have a scenario on which I needed your expertise..
Once Central Payments is activated, how are historical documents (of the current year) which have been cleared, updated in CFIN system?
My question is particularly on the clearing status and information of the cleared document.
thanks
Gayathri
HI Gayathri ,
System Behaves like below
Before Activation of Central Payment
Invoice Posted in ECC will real time replication in S4 System .
Payment Posted in ECC will real time replication in S4 System .
After Central payment Activation
Invoice Posted in ECC will real time replication in S4 System .
Payment will be in S/4 System .
Answer to your Qas before activation of Central payment all the Clearing documents has been Replicated to S4 System with clearing status and updated with the source system and source documents .
Before activation of central payment all Clearing documents will be available in both Source and target system .
Hope i answer your Query .
Regards,
Dipti Ranjan Das
thank you vey much for your document.
Hi Dipti,
Thanks for your answers. Curious to know is SAP going to support like this in other finance modules also?
There is a on-prem S/4H and CFIN - at this rate every business process will have to be mapped in CFIN, CLOG....etc.
Hi Dipti Ranjan,
Thanks for the informative article!
I have a question regarding deferred taxes in CFIN. Do we need to activate Central Payment for using the deferred tax functionality in CFIN?
Regards,
Sapna