FI-CA or FI-AR: Which Module Best Fits Your Needs?

  • by Martin Ullmann, President, DAP Consulting
  • September 15, 2004
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.

Martin Ullmann

Martin Ullmann is president of DAP Consulting, which specializes in public sector industries. He has more than 12 years of experience with SAP R/3. His main area of expertise lies in the FI/CO
area, with focus on new components, integration, enhancements, and business process improvements.

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