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 PSCD, Collections and Correspondence Management


Technical Data

Technical Name of Business Function


Type of Business Function

Industry Business Function

Available as of

Enhancement Package 4 for SAP ERP 6.0

Technical Usage

Public Sector Accounting

Application Component

Public Sector Contract Accounts Receivable and Payable (IS-PS-CA)

Directly Dependent Business Function Requiring Activation in Addition

Not relevant

You can use this business function to use new functions for enforcement work items and correspondence management as part of Collections Management in the Contract Accounts Receivable and Payable (FI-CA) component.

Furthermore, this business function enhances the functions available in the following areas of Contract Accounts Receivable and Payable, enabling you to:

  • Reduce your total costs of ownership and days sales outstanding (DSO)

  • Increase your customer satisfaction

  • Adjust your application to meet legal requirements


You have installed the following components as of the version mentioned:

Type of Component


Is Needed Only for the Following Features

Software Component

IS-PS-CA 604



FI-CA 6.04

To use this business function you also have to activate business function PSCD, Collections Management.

You have set up application component Contract Accounts Receivable and Payable (FI-CA). You have activated Business Function Set Industry Extension for Public Sector .

For relevant Customizing activities or chapters that have to be processed after activation of the business function, see the respective section in the release information for PSCD_COLLECTIONS_MANAGEMENT_1: PSCD, Collections and Correspondence Management (new).


Receivables Management

  • In Collections Management, you can define test series for champion/challenger analyses. For a certain percentage of champion strategies, you can specify challenger strategies and assign them to master data groups for analysis.

  • Both in Collections Management and with classic dunning, you can generate worklists from your dunning runs. You can use these worklists for contacting your customers by telephone or for telephony systems.

  • You can specify the responsibilities for processing worklists at the department level, unit level, and/or at the level of the collection specialist.


Integration with General Ledger — Account Assignments

  • You can enter account assignment to profit centers for receivables and liabilities.

  • Profit centers, segments, business areas and FM account assignments can be passed on from receivables to tax items. The tax items can also be distributed to different account assignments. (For more information, see Account Assignment of Tax Items.)

  • Postings to balance sheet accounts (such as bank accounts and bank clearing accounts) can also be posted with account assignment to a profit center.

Other Enhancements in Receivables Management

  • You can include partial amounts from receivables in an installment plan. In addition, you can set a different amount for the first installment than for the other installments. You can also levy other surcharges, for instance due to inflation, in the installment plan. (For more information, see Creating Installment Plans.)

  • You can use age and amount grids for automatically writing off receivables.

  • Classic revenue distribution is available as a mass activity.

    As part of enhanced revenue distribution, you can not only distribute receivables items cleared by payment to final recipients, but also open receivables items and payments on account.

  • You can group items together before they are cleared automatically.

  • For mass activities, you can specify the problem class for the messages output in the application log.


  • In the payment run, you can use preselections for master data in order to select business partners or contract accounts.

  • For international payment transactions, Contract Accounts Receivable and Payable supports the use of the BIC and IBAN instead of the bank number and bank account number. This applies to payment lots and to the transfer program for generation payment lots.

Integration with Other Application Components

  • Extractors for the payment and returns history, as well as for work items of Collections Management, enhance reporting in SAP NetWeaver Business Intelligence (SAP NetWeaver BI).

  • You can transfer dispute cases of SAP Dispute Management to an external application for further processing. For example, you can create and process dispute cases in a customer interaction center.

  • You can integrate the Funds Management (PSM-FM) component of Public Sector Management with Contract Accounts Receivable and Payable after it is already running.

Closing Preparation

  • For cases where you know neither the timing nor the amount for the recognition of deferred revenue at the time of invoicing, you can use events to trigger the revenue recognition.

  • You can use ledger groups for posting for doubtful entries or individual value adjustments to update specifically to selected ledgers.

  • For value adjustments, you can enter an explicit value adjustment amount that the system uses to individually adjust the receivable.

  • You can create reports on installment plans for a key date in order to include installment plans when you sort open items by due date for financial reporting purposes.

Enterprise Services

  • For submitting to collection agencies, enterprise services are now available in addition to the file interfaces used until now. (For more information, see Communicating with Collection Agencies Using Enterprise Services and Transfer of Information from Enterprise Services.) There is also a monitor for external collection services, along with transactions for processing collection agency information and for posting collection agency payments. Besides these enterprise services for submitting to collection agencies and for external cash desk services, additional enterprise services are available in the namespace

  • Using enterprise services in the area of external cash desk services, you can:

  • For reporting events to external systems, there are enterprise services for clearing and returns; for reading information, there are enterprise services for the account balance and for dunning.

Country-Specific Enhancements

  • Italy

    You can levy Bollo for customers with tax exceptions.

  • USA

    Contract Accounts Receivable and Payable supports the check escheatment process for checks that were not cashed by the recipient within a certain time period.

Enhanced Inbound Correspondences

Some new features are available for enhanced inbound correspondences with this business function. You can perform dunning activities before the due date of the inbound correspondence in order to create a reminder letter, for example. If you want to map period-independent processes, such as the registration of taxpayers, you can create the enhanced inbound correspondence requests for this period-independently. Additionally, you can define the system in such a way that existing inbound correspondences are changed automatically when you change the guidelines defined for generating inbound correspondence requests for a contract object. All these features are activated in Customizing for Contract Accounts Receivable and Payable.