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Author's profile photo Nitin Gupta

SAP Central Finance & FSCM with Central Payment

In this blog we will only focus on the impact of SAP Central Payment activation on the FSCM processes running in the organization in ECC systems.

Lets assume (for the sake of keeping it simple) we just have one SAP ECC as source system and of course one SAP S/4HANA system as a target system.

Below are the processes which fall under FSCM

 

Now lets talk about each process one by one

Collections Management –

  • Collections management is a collection of tools to support a company’s receivables processes. From a receivables management point of view, customers can be valuated and assigned a priority. Collection Management is affected by activating Central Payments. Lets assume this process is running in SAP ECC then it should be stopped in ECC and should be moved to Central Finance system (case 1 below) and if collections management is running in any other system connected to SAP ECC then the Central Finance system must be connected to the collections management system and must be disconnected from the source systems. Collections management must be carried out in the Central Finance system.(Case 2 below)
  • Historic items can remain in old system but if there is a need to execute processes on historic items then the data migration of historic items must be done to the Central Finance system
  • As central payment is activated by company code, the prerequisite for running collections management in the Central Finance system is that one collection segment needs to be assigned to one company code.

Case 1

Case 2

Dispute Management –

Dispute Management is kind of group of functionalities which helps in handling complaints process related to payments. When we activate Central Payments we need to ensure below:

  • Dispute Management should be done in Central Finance system as open items (AR and AP) are in Central Finance system
  • Open cases needs to be migrated to SAP S/4HANA Central Finance system if they exists at the time of activating Central Payments
  • Also we need the connect between the billing document in source and dispute case in target system for which below configuration is needed

Credit Management –

In normal replication scenario (before Central Payment activation) if Credit Management is implemented in CFIN system then the credit exposure is also updated which results in duplication of open invoices so its not recommended to activate CM before central payments. But their might be cases in projects where phased implementation is planned then company codes can be filtered out using BADi UKM_FILL.

Once Central Payment is activated alongside FSCM in Central Finance system then the open items are technically cleared in SPA ECC then the credit exposure can not be updated in EC so that standard report should be used – SE38 > FINS_CFIN_APAR_SET_TECH_CLR

Cash & Liquidity Management (C&LM)-

Before Central Payment is activated the C&LM can be done in source system. In case its done in target system then below needs to be planned:

  • Clearing transfer is activated
  • Cash Management data needs to be transferred to CFIN system using standard IDOCS

But once Central Payment is activated it is important that C&LM is only being executed in SAP Central Finance system. There is a huge importance of planning date as it drives the fund inflow & outflow. Planning date must be cleared (via mapping actions) when the data is replicated so that in Central Finance system it can be redetermined. Also, the payment history record (in customer master data) in source as well as target system should be maintained.

Please refer to the following blogs for more on SAP Central Payment and related information

SAP Central Payment and withholding taxes

SAP Central Payment and Tax Reporting

SAP Central Payment dependent processes

Business Process Design view with SAP Central Payments

Enjoy reading and keep sharing knowledge

 

 

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      2 Comments
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      Author's profile photo Subba Bendhanam
      Subba Bendhanam

      Nice Blog

      Author's profile photo Jonathan Negash
      Jonathan Negash

      Informative and detailed information. Thanks for sharing your knowledge with CFIN