SAP Contract Accounts Receivables and Payables
SAP Contract Accounts Receivable and Payable is a subsidiary ledger that is tailored towards the requirements of industry sectors with a high volume of business partners and a large number of documents for processing, such as:
Electronic Toll Collection
Retail (mail order business)
Postal Services (large scale)
Railways (transportation of goods)
Internet content sales (for example, Apple-like businesses)
To meet the demands of high-volume business industries, the solution provides highly flexible processes to allow for a maximum of automation as well as mechanisms to guarantee outstanding system performance and scalability. The large number of postings, for example during billing, are managed in SAP Contract Accounts Receivable and Payable and uploaded to the general ledger.
Each individual business transaction, that is, each posting and each document for a given customer, is stored in order to guarantee itemized verification. These FI-CA documents are cumulated and transferred periodically to the general ledger of the Financial Accounting (FI) component or to a non-SAP system. When an FI-CA document is posted, accounts are determined automatically for G/L Accounting (FI-GL). All receivables, payables, revenue and expense accounts are automatically determined based on account assignment details in the line items.
Key functions of SAP Contract Accounts Receivable and Payable include the following:
Mass data processing
Reduction of memory space for storing open and cleared items
Performance of data change functions
Fast data input
Acceleration of all critical activities such as posting, payments, and returns processing
Automation of all transactions as far as possible
Flexibility and system openness
Flexible input format
Business process enhancements and seamless integration of customer-specific data without modification
Separation of user interface, checks, data storage
SAP Contract Accounts Receivable and Payable is suitable for worldwide implementation. It covers various statutory requirements (such as those that relate to tax legislation and accounting principles) and country-specific processes (such as the management of payment transactions).
SAP Contract Accounts Receivable and Payable is the backbone of the broader end-to-end process Consume to Cash in High Volume Business, which comprises the following processes:
Convergent Charging for online rating and charging
Convergent Invoicing for converging different billing streams on one customer invoice
Customer Financials Management
– Contracts Accounts Receivable and Payable (as described above)
– Credit Risk and Collections Management
– Financial Customer Care and Dispute Management
The overall end-to-end process serves the needs of online rating, charging and billing for any recurring or event-driven services or orders. In addition, Contract Accounts Receivable and Payable (FI-CA) facilitates the merge of different billing streams into one customer invoice. Customer Financials Management (CFM) can handle receivables management and payments, manage credit risk and collections, offer financial customer care and dispute management, and use electronic bill presentment and payment. In addition it brings together customer-facing activities and solid financial capabilities that ensure you comply with legal requirements. As it is compliant with statutory requirements on an international scale, its auditability is guaranteed.