EAFS, Payt App. Hierarchy and Neg. Postings 
Technical Name of Business Function |
EAFS_CML_PAH_NP |
Type of Business Function |
Enterprise Business Function |
Available As Of |
SAP Enhancement Package 5 for SAP ERP 6.0 |
Technical Usage |
Financial Services |
Application Component |
Loans Management (FS-CML) |
Directly Dependent Business Function Requiring Activation in Addition |
Not relevant |
You can use this business function to improve processing of incoming payments and to execute negative postings for reversals.
Payment Application Hierarchy
You can use this business function to apply incoming payments through a payment distribution hierarchy dependent on the status of the payment. Payment Application Hierarchy is a part of the function for loan accounts, which is provided in SAP Loans Management (FS-CML). This function exists already for the product category Installment Loans (360) and is extended to the product categories Mortgage Loans (300) and General Loans (330).
Negative Postings
You can use this business function to execute negative postings. Negative postings are postings in the general ledger that lead to actual reversal postings instead of offsetting postings. You use negative postings to reduce the transaction figures in the general ledger accounts, customer accounts, and vendor accounts. After the negative posting has been made, the transaction figures have the status that they had before the reversed document and its reversal document were posted.
Prerequisites
You have installed the following components as of the version mentioned:
Type of Component |
Component |
Is Needed Only for the Following Features |
Software Component |
EA-FINSERV 605 |
|
Technical component or business content, e.g. Portal Content |
Not relevant |
Settings for Payment Application Hierarchy
You make the Customizing settings for Payment Application Hierarchy in Customizing for Loans Management (FS-CML) under:
SAP Banking 
Loans Management Functions Incoming Payment Assign Hierarchy to Product Category 
- SAP Banking Loans Management Functions Incoming Payment Distribution Extended Incoming Payment Distribution
Determine Underpayment Hierarchy
Determine Overpayment Hierarchy
Define Payment Plan
Assign Payment Plan to Product Type
Define Payment Rules
Assign Payment Rules to Payment Plan
Define Payment Limits for a Product Type
Settings for Negative Postings
You make the Customizing settings for Negative Postings in Customizing for Financials under:
- Financial Accounting Financial Accounting Global Settings Global Parameters for Company Code Enter Global Parameters
- Financial Accounting General Ledger Accounting Business Transactions Adjustment Posting/Reversal Define Reasons for Reversal
- Financial Accounting General Ledger Accounting Business Transactions Adjustment Posting/Reversal Permit Negative Posting
- Financial Accounting Accounts Receivable and Accounts Payable Business Transactions Postings with Alternative Reconciliation Account Other
Special GL Transactions Make and Check Document Settings Define Document Types
Additionally, you make the Customizing settings for this function in Customizing for Loans Management (FS-CML) under
SAP Banking -> Loans Management -> Functions - > Accounting -> Reversal
-> Define Reasons for Reversal .
Features
Payment Application Hierarchy
The PAH functionality is based on the assumption that the product categories are managed and calculated based on a planned payment schedule (“payment plan principle”).
A payment hierarchy enables you to control the order in which incoming funds are applied to the loan. The incoming payments are applied according to a payment plan, which is a complex collection of rules that must be assigned to every loan contract. You use the payment plan to determine how the system processes incoming payments and distributes them across open items. The payment plan also defines the procedure for dealing with exact payments, underpayments, and overpayments. You do not define a hierarchy for exact payments because this is made in accordance with the plan. You assign the payment plan to a product and company code. You can only assign one plan for each combination of product and company code.
You can assign a different payment hierarchy for different payment scenarios, including overpayment and underpayment scenarios. Each payment scenario has a payment status, which is based on the due date of the payment. The payment status that is available for the product categories Mortgage Loans (300) and General Loans (330) is Normal.
Underpayment Hierarchy: In this scenario, you define the order in which the system is to apply incoming payments to loan items when the incoming payment amount is less than the total due.
Exact Payment: Exact payments are treated as a special case for an underpayment.
Overpayment Hierarchy: In this scenario, you define the order in which the system is to apply incoming payments to loan items when the incoming payment amount exceeds the total due amount.
Negative Postings
Negative postings are those postings in general ledger which lead to actual reversal postings instead of offsetting postings. Negative postings are used to reduce the transaction figures in G/L, customer and vendor accounts. In this way, the transaction figures receive the status they would have had without posting the reversed document and its reversal document.
Most importantly, negative posting does not affect the individual posting records (a debit posting still offsets a previous credit posting and a credit posting still offsets a previous debit posting) That means that the posting records sent to the general ledger will look the same as before. The “negative postings” only affect on the account balances.