What is subrogation in SAP FI-CA - Contract Accounts Receivable and Payable?

SAP Term: subrogation

• Component: FI-CA

• Component Name: Contract Accounts Receivable and Payable

• Description: Assignment of a receivable from a previous business partner to a third party

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• Key Concepts: 
  Subrogation is a process in the SAP FI-CA Contract Accounts Receivable and Payable component that allows a third party to take over the rights of a creditor. This means that the third party can take over the debt and become responsible for collecting it from the debtor. The third party is known as the subrogator. 
  
  How to use it: 
  In SAP FI-CA, subrogation can be used to transfer a debt from one creditor to another. This is done by creating a subrogation agreement between the two parties. The agreement will specify the terms of the transfer, such as the amount of the debt, the interest rate, and any other conditions that must be met. Once the agreement is created, it can be used to transfer the debt from one creditor to another. 
  
  Tips & Tricks: 
  When creating a subrogation agreement in SAP FI-CA, it is important to ensure that all of the terms are clearly stated and agreed upon by both parties. This will help to avoid any misunderstandings or disputes in the future. Additionally, it is important to keep track of all subrogation agreements in order to ensure that all debts are properly transferred and collected. 
  
  Related Information: 
  Subrogation is an important concept in SAP FI-CA Contract Accounts Receivable and Payable. It is also related to other concepts such as assignment and novation, which are also used to transfer debts between creditors. Additionally, subrogation can be used in conjunction with other processes such as payment plans and debt consolidation.