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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.


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.


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


  • 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

  1. 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.

  2. Activate central payment for the respective company codes. (run Program FINS_CFIN_APAR_CPAY_SWITCH)

  3. 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.

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
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



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 .