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sarkhelakash
Explorer
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Concept

Central Payment allows you to make payment centrally for all different source systems integrated to Central finance system. It marks all A/R & A/P open items as technically cleared (ALE_EXTERN) in source & replicate them as open items in central Finance where all open item related processes (Central Processes) can be executed i.e., Dunning, Foreign currency valuation, Collection & Dispute Management, Credit Management, Bank communication Management etc.

All A/R & AP open items in source will still have balances as payment/clearing executed in central finance system will not replicate to source. Central Finance system will be considered as single source of truth for all A/R & A/P.

It is still possible to perform Cancellation/Reversal & Document changes with A/R & A/P documents which are technical cleared in source. However, with CSPC (Cross System Process control) an additional component of central payment will only allow to perform cancellation/Reversal if the document is not cleared in Central Finance system.

 
Central Payment Pre- Requisites:

    • Tax Consistency Check: It performs consistency check for all tax attributes between source & Target during document replication. Using SLT, all tax tables i.e., T001, T007A, T005, T007B, TTXD, T001WT etc. are replicated & stored in FINS_CFIN_T* tables in CFIN. Tax consistency check can be activated without central payment as well but with central payment its mandatory to enable the same.
    • Cross System Process Control: CSPC is a validation which stops any cancellation & reversal in source if the same document is cleared/paid in central finance system.
    • Clearing Transfer: With this, you can transfer clearing document from source to central finance. With activation of CPAY, all AR/AR will be managed by central payment, but GL open item will still come under clearing transfer wherein document with any open item GL will remain open in source & will be replicated to CFIN as open item only. Clearing will be executed in source & will be replicated to CFIN as well.
    • Central Clearing Transfer: This enhanced feature of clearing transfer allows you to choose GL accounts which you want to clear from Central Finance. It means these Open item GL accounts will appear technically clear in Source & will appear open in central finance. This behavior would be similar to central payment, only difference is here you have flexibility to choose GL accounts which you want to clear centrally. Rest for all GL accounts clearing will be executed from source i.e. GR/IR clearing account.

Other Prerequisites:

    • SAP Notes: All SAP notes must be implemented in Source & Target depending upon system release.
    • RFC Connection: There must be active RFC connection between source & Target System.
    • General Settings in Source: VCFIN_SOURCE_SET should have value maintained in source system.
    • Mappings: Co Code Mapping between source & target should exist in central Finance system.
    • Logical System: Source Logical system must be created in CFIN & Source System.

Central Payment Architecture

Let us understand the system behavior considering:

Scenario A:

ScenarioOutcome
Central Payment & Clearing Transfer are Not ActiveAll the open items will remain open in the source system and technically cleared in CFIN system. Once payment (Clearing) document is generated in source system, the same will be replicated to the CFIN system with ALE-EXTERN without any reference to open item.


Transactions to understand System behavior for Scenario A:

Source System behavior:


Transaction

Source System

Doc. Number

Clearing Doc. Number

Vendor Invoice

Expense Dr.

190001

 

 

Vendor a/c Cr.

190001

140001

Vendor Payment

Vendor a/c Dr.

140001

 

 

Outgoing Bank a/c Cr.

140001

 


Target System Behavior:


Transaction

Target System

Doc. Number

Clearing Doc. Number

Sender Doc. Number

Vendor Invoice

Expense Dr.

190015

 

190001

 

Vendor a/c Cr.

190015

ALE-EXTERN

190001

Vendor Payment

Vendor a/c Dr.

140015

ALE-EXTERN

140001

 

Outgoing Bank a/c Cr.

140015

 

140001


Scenario B:

ScenarioOutcome
Only Clearing Transfer is Active (AP, AR and GL applies to all)The open items will remain open in both the source and the CFIN system. Once clearing is done in source system at the time of replication, it will clear the open item in the CFIN system as well and will update the clearing document number in open item.


Transactions to understand system behavior for Scenario B:

Source System Behavior:


Transaction

Source System

Doc. Number

Clearing Doc. Number

Vendor Invoice

Expense Dr.

190001

 

 

Vendor a/c Cr.

190001

140001

Vendor Payment

Vendor a/c Dr.

140001

 

 

Outgoing Bank a/c Cr.

140001

 


Target System Behavior:


Transaction

Target System

Doc. Number

Clearing Doc. Number

Sending Doc. Number

Vendor Invoice

Expense Dr.

190015

 

190001

 

Vendor a/c Cr.

190015

140015

190001

Vendor Payment

Vendor a/c Dr.

140015

 

140001

 

Outgoing Bank a/c Cr.

140015

 

140001


 Scenario C:

ScenarioOutcome
Central Payment & Clearing Transfer are Active.After activation of Central payment, all ongoing AP and AR open items posted in the source system will be technically cleared (ALE-EXTERN) and will be posted as an open item in the CFIN system. The payment of these open items will be made in the CFIN system. However, the GL open items for e.g., GR/IR clearing will remain open in both the systems and clearing done from the source system will be transferred to the CFIN system.


Transactions to understand System Behavior Scenario C:

Source System Behavior:


Transaction

Source System

Doc. Number

Clearing Doc. Number

Vendor Invoice

Expense Dr.

190001

 

 

Vendor a/c Cr.

190001

ALE-EXTERN


Target System Behavior:


Transaction

Target System

Doc. Number

Clearing Doc. Number

Sender Doc. Number

Vendor Invoice

Expense Dr.

190015

 

190001

 

Vendor a/c Cr.

190015

140015

190001

Vendor Payment

Vendor a/c Dr.

140015

 

NA

 

Outgoing Bank a/c Cr.

140015

 

NA


Transactions to understand System Behavior for Scenario C:

Source System Behavior:


Transaction

Source System

Doc. Number

Clearing Doc. Number

Goods receipt

Raw material stock Dr.

190001

 

 To GR/IR A/c Cr.

190001

190003

Transaction

Source System

Doc. Number

Clearing Doc. Number

Invoice receipt

GR/IR Dr

190002

190003

To Vendor

190002

 

Transaction

Source System

Doc. Number

Clearing Doc. Number

GR/IR clearing

GR/IR Dr

190003

 

GR/IR Cr

190003

 


Target System Behavior:


Transaction

Target System

Doc. Number

Clearing Doc. Number

Sender Doc. Number

Goods receipt

Raw material stock Dr.

190015

 

190001

 To GR/IR A/c Cr.

190015

190017

190001

Invoice receipt

GR/IR Dr

190016

190017

190002

To Vendor

190016

 

190002

GR/IR clearing

GR/IR Dr

190017

 

190003

GR/IR Cr

190017

 

190003


Deployment Strategy Scenario 1


Note: Before Go-Live, Clear ongoing replication tables (CFIN_ACCHD & CFIN_ACCIT) in source via report RCFIN_DEL_MIG & RCFIN_DEL_MIG_CO

CPAY will be activated prior executing CFIN initial load & all historical Open items in source will be marked ‘Technically cleared’ via FINS_CFIN_TECH_CLR after successful migration.

Deployment Strategy Scenario 2

Note: Since CFIN is already implemented, there won’t be any live proofing test which means source production system will not be hooked up with S4 QA or Pre-Prod Environment. Central Payment & all central processes will be tested till UAT.

If Client have CFIN with Clearing Transfer & want to activate CPAY. After CPAY activation, all historical open items will be marked ‘Technically cleared’ via FINS_CFIN_TECH_CLR in Source system.

If Client have CFIN w/o clearing Transfer & want to activate CPAY with Clearing Transfer. After CPAY activation, all historical A/R & A/P Technically cleared documents in CFIN which are still open in source will be reopened via FINS_MIG_CJ3 & Same documents will be marked technically cleared in Source via FINS_CFIN_TECH_CLR.

CPAY activation will also require changes in SLT, which may require several SAP notes & redefine Predefined load objects to make some changes in structure.

 

 

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