Reorganization of Receivables and Payables

With this reorganization, you can change the profit center assignments for open receivables and payables.

With the transfer posting, the system not only posts the receivables or payables balances in new General Ledger Accounting from the old to the new profit centers, but it also adjusts the document splitting information accordingly so that follow-on processes (such as partial payment and clearing) automatically apply the new profit centers.

Integration

The reorganization of receivables and payables forms part of the profit center reorganization. The reorganization also includes any relationships to other objects that have imparted their profit center assignment to the receivables or payables.

Document Splitting

A special feature of receivables and payables is that they are not assigned directly to a profit center; instead, they acquire a profit center as a result of document splitting: Receivable or payable items are never assigned to a profit center in the entry view; instead, receivables and payables obtain their account assignment in the general ledger view by means of document splitting (see the examples below).

Receivables and Payables in the Derivation Hierarchy

Receivables and payables can be objects on the first level of the derivation hierarchy as well as objects on a lower level:

Object on first level:

In the following case, a receivable or payable is an object on the first level: The receivable or payable or parts of the receivable or payable have obtained the profit centers from the expense or revenue items during document splitting. The processor has manually assigned the profit center in the expense or revenue items. It was not derived from another object (such as a cost center, order, asset, purchase order item, sales order item, WBS element, network, or network activity).

Example Example

Entry view:

CoCode	Item	Posting Key	Account	Description	Amount	Curr.	Tax	PrCtr	Segment
8005	1	31	VE800005	Seller	100.00–	EUR	V0
	2	40	400003	Raw Mat.3	40.00	EUR		PC_DEMO_10	8005
	3	40	400003	Raw Mat.3	60.00	EUR		PC_DEMO_10	8005

General Ledger View:

CoCode	Item	Line Item	Posting Key	Account	Description	Amount	Curr.	Tax	PrCtr	Segment
8005	1	000001	31	160000	Payable	40.00–	EUR	V0	PC_DEMO_10	8005
	1	000002	31	160000	Payable	60.00–	EUR	V0	PC_DEMO_11	8005
	2	000003	40	400003	Raw Mat.3	40.00	EUR		PC_DEMO_10	8005
	3	000004	40	400003	Raw Mat.3	60.00	EUR		PC_DEMO_11	8005

In the object list, the receivable or payable is displayed as follows with partial amounts for each profit center:

FY	CoCode	Doc.No.	Line Item	Object Type	Key 1	Key 2	Key 3	PrCtr	Amount in LC
2009	8005	1900000017	1	PC	PC_DEMO_10	8005		PC_DEMO_10	40.00–
2009	8005	1900000017	1	PC	PC_DEMO_11	8005		PC_DEMO_11	60.00–

The natural key of the receivable or payable (consisting of fiscal year, company code, document number, and line item) is supplemented with information regarding the object from which the profit center was derived for each partial amount of the receivable or payable. Since the profit center in this case was not derived from another object, the profit center forms part of the key.

The columns Object Type and Key Field 1 through 3 consequently signify the following:

Object type of the object from which the profit center was derived (here: object type PC for profit center)
Key field 1 of the object from which the profit center was derived (here: profit center)
Key field 2 of the object from which the profit center was derived (here: controlling area)
Key field 3 of the object from which the profit center was derived (here: empty)

End of the example.

Object on a lower level:

In the following case, a receivable or payable is an object on a lower level of the derivation hierarchy: The receivable or payable or parts of the receivable or payable have obtained the profit centers from the expense or revenue items during document splitting. In this example, however, the profit center was derived from a different object. In this way, the profit center can be derived from the following objects, for example, and inherited by the receivable or payable:

Purchase Order Item
Cost Center
Internal Order
Production Order and Process Order
Product Cost Collector
Sales Order Item
Network
Network Activity
Cost Object
Accrual Order
QM Order
Maintenance Order
WBS Element
Fixed Asset

In the case of these objects, however, the profit center can be derived from another object. These dependencies are reflected by the derivation hierarchy. The following applies for the hierarchical view of the object list: How the profit center was derived dictates under which node in the derivation hierarchy the receivable or payable is listed in the Reassignment area.

Example Example

When an incoming invoice is posted in Material Management (MM), the profit centers were derived from two purchase order items. The purchase order item of a nonassigned purchase order obtained the profit center from the ordered material. In the derivation hierarchy, the payable is therefore located in the Payables node beneath Material –> Purchase Order (Nonassigned). The partial amounts of the payable are reassigned to the same new profit centers and transferred in the same way as the assigned purchase order items from which they had received the old profit center.

FY	CoCode	Doc.No.	Line Item	Object Type	Key 1	Key 2	Key 3	PrCtr	Amount in LC
2009	8005	5100000002	1	PO	4500017548	00010		PC_DEMO_11	69.00-
2009	8005	5100000002	1	PO	4500017548	00020		PC_DEMO_10	57.50-

The columns Object Type and Key Field 1 through 3 consequently signify the following:

Object type of the object from which the profit center was derived (here: object type PO for nonassigned purchase order)
Key field 1 of the object from which the profit center was derived (here: document number of the purchase order)
Key field 2 of the object from which the profit center was derived (here: purchase order item)
Key field 3 of the object from which the profit center was derived (here: empty)

As with all other object types, the (partial) payables or receivables are not selected until the related higher-level object (here: purchase order item) has been reassigned.

End of the example.

For information about how the system proceeds when the profit center assignment cannot be derived from the higher-level object such as the internal order (possibly because the internal order has already been closed), see Receivables and Payables as Objects of the First Level.

Prerequisites

Receivables and payables can only be included in the reorganization when document splitting is activated with the document splitting characteristic Profit Center. (You make the corresponding setting in Customizing for General Ledger Accounting (New) under Start of the navigation path Business Transactions Next navigation step Document Splitting Define Document Splitting Characteristics for General Ledger Accounting End of the navigation path ).

Features

You can select open receivables and payables that are assigned to a profit center to be reorganized.

The reorganization manager can choose selection criteria to restrict the quantity of relevant objects.

The system tries to determine the new profit center automatically.

Example Example

If a production order needs to be reorganized, the system reorganizes the parts of the payable that have received their profit center from that production order and automatically transfers the payable balances to the same new profit center as the production order.

End of the example.

If the new profit center cannot be determined automatically, an object owner must decide which new profit center needs to be assigned to the receivable or payable.

When the receivable or payable is reorganized, the document is not changed. (One exception is the down payment request). Only the partial amount of the receivable is transferred to the new profit center on the reconciliation account of the vendor.

Furthermore, the system ensures that follow-on processes, such as clearing, are performed using the new profit center.

In the case of foreign currency valuations using the delta procedure, the balance remaining since the last valuation is increased or decreased with the next foreign currency valuation. However, for reassigned receivables and payables, the increase or decrease is made on the new profit centers. For this reason, the system also transfers the balance that needs to be valuated in the foreign currency to the corresponding accounts (and ledgers, if appropriate).

If a payable is posted with the vendor net procedure, the system also updates the document splitting for the cash discount clearing item during the reassignment.

Activities

As with every other object type, there are the following activities, which the reorganization manager or object owner performs.

Reorganization manager: Generate "first-level" object list:
Here, the system selects all receivables and payables that have received their profit center assignments directly and not from another object (such as the cost center). Furthermore, the system selects objects for which the analysis failed or for which the objects determining the assignment are closed (for more information, see Receivables and Payables as First-Level Objects).
Reorganization manager: Assign object owner and change object status
Object owner: Define new profit center assignments
Reorganization manager: Perform reassignment
The reassignment is performed for each node in the derivation hierarchy. Any first-level objects already edited by the object owner are reassigned with this activity. In the case of objects on lower levels, the system first selects, for all successfully reassigned objects of the higher-level node, the receivables and payables that have received their profit center assignment from these objects.

Example
Ten materials have been reassigned. These materials imparted their profit center to 50 purchase order items. 30 purchase order items were successfully reassigned. 20 payables were found for these 30 successfully reassigned purchase order items. In the next step, all receivables or payables found are reassigned together with objects for which the reassignment failed in previous runs.

End of the example.
Reorganization manager: Transfer balances
For successfully reassigned receivable or payable amounts, a cumulated transfer posting is performed.

Where necessary, repeat these steps to reorganize your objects successively or to include new objects.