Although both Accounts Receivable (FI-AR) and Contract Accounts Receivable and Payable (FI-CA) track accounts receivable transactions, there are important differences between the two modules. The author compares your options and presents the benefits and drawbacks of each.
A business partner is a customer within FI-CA. The business partner contains central data such as name, address, and bank details.
All invoices and payments are posted to a contract account, which is assigned to a business partner. The contract account contains control information like payment methods, payment conditions, or dunning procedures.
A contract object is an optional master data object that can be assigned to a contract account and business partner. The contract object allows for the segregation of receivables below the contract account.
SAP Financial Accounting (FI) delivers the standard Accounts Receivable (FI-AR) module to track accounts receivable transactions. This module is tightly integrated with the R/3 Sales and Distribution (SD) module to enter and process customer master data, shipping, billing, and receivables.