SAP Central Finance – Managing Central Payment dependent processes – Part 1
This blog will be divided into 2 sub blogs and focus will be on how to manage the business processes which are impacted due to activation of Central Payments.
Prerequisite to apply this blog in practice is that Central Payment is active in the system.
We will discuss the below items (Image 1) in this blog and for the details on the remaining content (Image 2) click on the image itself:
Once Central Payment is activated, the dependent processes (on customer & Vendor open items) can only be performed in Central system since the open items are already closed in source system (ECC or Non-SAP).
- Reversals – Any reversal of source document need to happen in source system and the reversal is replicated to CFIN system just like Original document. However the process document which are posted in CFIN system (like Payment, payment reversal etc.) needs to be reversed in central system. In addition, if an item posted in the source system has been cleared/paid in the Central Finance system, the user needs to manually reset the clearing in the Central Finance system before performing the reversal in the source system.
- Foreign Currency Valuation – This is one of the complex process however after Central Finance activation it should happen in CFIN system. If usage of delta revaluation (valuation for balance sheet preparation) is not in scope then this can be executed in CFIN system normally but if delta revaluation is in scope , the following steps need to be performed to ensure a proper valuation in the Central Finance system for historical open items after Central Payment activation, irrespective of the fact that the source system is using classic GL or New GL:
- Ensure that all the documents to be valuated have been replicated to the Central Finance system (via initial load or ongoing replication). This should be taken into account during the implementation of Central Finance
- Reset foreign currency valuations for all historical open items under this company code in the source system before Central Payment is activated
- Redo foreign currency valuations for historical open items in the corresponding company code in the Central Finance system
- Collection Management – This needs to be managed on case by case basis:
- If Collection Management was used in a separate Collection Management system before Central Payment than that process can be continued and no need to change any process
- If Collection Management was used in one or more source system(s) before Central Payment was activated then after Central Payment is activated, collection management needs to run from CFIN system
- For the historical collection process in the source systems, historical collection objects such as promises to pay, dispute cases, dunning history, notes, resubmissions, customer contacts can be kept in the source systems.
- Provision for Doubtful debts – All Provision documents should be replicated as a part of CFIN program (Initial Load or replication) and all the provision documents should have been reversed for the cleared invoices & historical open items in the source system before Central Payment is activated. To reverse the provision documents an offset posting can be made manually (FB01/F-02) to the provision account to make the balance zero. Reversal should be done before running the report FIN_CFIN_APAR_SET_TECH_CLR to set historical open items as technically cleared in the source system. Now again do the provision for the historical open items in Central Finance system before Central Payment activation
- Dispute Management – Before Central Payment activation, Dispute Management can run in the source system or in the CFIN system (if clearing transfer is activated) but if Central Payment is activated it is important to note that Dispute Management has to be implemented in the CFIN system. Any open dispute cases needs to be migrated to central system after central payment activation.
- Balance Sheet Adjustment – This can be run for:
- Profit Centre
- Business Area
Once Central Payment is activated, the balance sheet adjustment for business area and profit centre has to be executed in the CFIN system only and to do that successfully we need to:
- Source system BS adjustment has to be deactivated
- Corresponding BS adjustment has to be activated in CFIN system
- Individual Value Adjustment – After Central Payment is activated, the individual value adjustment (F-21) should only be carried out in CFIN system and the reversal process (FB08) of individual value adjustments that were posted in the source system before Central Payment activation, is carried out in the source system. The reversal document should be replicated to the central system.
We will cover more dependent process in the next blog (see image). Click on the IMAGE to read the next blog.
Link to next blog – CLICK HERE