Open Item Migration Posting logic in SAP FICA
Open item migration is a critical activity in an SAP financials project implementation. It is undertaken to ensure the following:
1) From the point of cutover, business is able to perform all the receivable and payable processing in SAP.
2) Trial balances generated in SAP after the migration reflects the accurate picture of organization’s accounting figures and is correct down to last 1 cent.
There is no fixed posting logic that is universally applicable. Each project has a different landscape and needs a prudent evaluation of the accounting record maintenance in legacy system(s) to come at the final posting logic and strategy. This strategy must be signed off by all stakeholders.
Nonetheless, the following posting logic explains the concept and can be used as a reference and should be applicable as it is in majority of implementations.
Suppose, there are 10 open receivable items in the legacy system each posted with following accounting entry in the legacy system.
Dr- $11 Accounts Receivable GL 112345
Cr- $10 Revenue GL 400100
Cr- $1 Tax liability GL 203456
Overall, we have the following balances:
GL 112345 – Debit Balance $110
GL 400100- Credit Balance $100
GL 203456- Credit Balance $10
Following steps are executed in the migration of these open items:
1) Transfer to SAP FI GL – Manual postings
GL 112345 – Debit amount $110
GL 400100- Credit amount $100
GL 203456- Credit amount $10
2) Clearing Posting in SAP FI GL – Manual posting
Clearing GL 800100 – Debit amount $110
GL 112345 – Credit amount $110
Note that the balance on receivable GL 112345 is zero at the end of second step.
3) Receivable GL is now marked as the reconciliation account for contract accounts receivables and payables. Now, no direct FI-GL posting shall occur.
4) Open item migration (receivable only) in FICA.
At the end of migrating 10 items in the FICA, the overall accounting impact of these 10 items posted in FICA shall be as follows:
GL 112345 – Debit Amount $110
GL 800100 – Credit Amount $110
Note that these postings in step 4 are still in FICA and not in FI
5) Reconciliation key transfer to FI
At the end of the fifth step, clearing GL balance should be zero now and receivable GL has correct balance of $110 in SAP FI.
Revenue and tax balances were updated in FI in step 1. This captures the posting logic for migration of open items in SAP FICA.