Centralized payments - TRM-IHC over FI-AP

[nitya_n]

Team - Can you please explain the advantages of using In-house cash over FI-AP for centralized payment scenario. In FI-AP we can configure same paying company code for multiple sending company codes and achieve the same result as IHC centralized payments. Given that we have OBYA setting as customer and vendor it is also easy to track how much each company code owes or needs to receive from each other.

Regards

Nitya

[ajaycwa1981 · Accepted solution]

Hi Nitya

Not an expert at IHC, but IHC is much more than Sending-Paying co. code. It helps you to be combine the payments and do a netting off

let me loop in one of the known persons for this

- You can answer this, I believe

Regards

Ajay M

[nitya_n · Accepted solution]

Thanks Ajay. My question is specific to centralized payments. I completely agree on other benefits offered by IHC. If i have only the scenario of centralized payments to be implemented would it matter if I choose FI-AP over TRM-IHC?

[ajaycwa1981 · Accepted solution]

Hi Nitya

If it is only Central Payments, you can use FI-AP

You can also explore SAP BCM, as it has additional features of merging payment files, approval work flow etc

Ajay M

[sanilbhandari · Accepted solution]

Hi Nitya

IHC along with BCM can offer a lot of functionality for centralized payments and including I/C posting related automation as well. You have the ability to reduce or sunset some bank accounts. Of course, there is an additional license if you are using IHC, so you really have to match up costs with benefits.

Regards

Sanil Bhandari

[nitya_n · Accepted solution]

Thanks Sanil. Would you please highlight the advantages which IHC offers over FI-AP specific to centralised payments scenario?

[sanilbhandari · Accepted solution]

Hi Nitya

If it is just the centralized payments only, than FI-AP is a better solution since the license cost involved for IHC is quite huge. However, if you are also using Treasury as a submodule and you have full operating license for FSCM, than integration of IHC along with BCM considerably helps. Some of the quantifiable advantages:

1. Bank Account Consolidation: In IHC, you can sunset your bank accounts as well as integrate your Treasury related payments, which is not possible with FI-AP. You have to execute seperate t codes in FI-AP for Treasury related transactions

2. Reduce Funding Cost - Intercompany cash funding can help you reduce your bank charges and reduce your short term borrowings. FI-AP does not provide that kind of functionality

3. Shared Service Concept - Using IHC as a solution,you can use the shared service concept for managing your payment process more easily rather than individual markets in a global set up making the payments them selves

4. Internal Controls - A standardized process improves internal controls which may not be possible to that extent in FI-AP Enviornment

5. Standardize Bank Communication - You can go in for a single payment format with the bank rather than multiple payment formats reducing your overall IT Costs

Regards

Sanil Bhandari