What is chain liability in SAP SRD-FIN-ACC - FIN-Financial Accounting?

SAP Term: chain liability

• Component: SRD-FIN-ACC

• Component Name: FIN-Financial Accounting

• Description: The responsibility of a company, who hires a subcontractor to complete work on behalf of the company, to pay any income tax and social security contributions that the subcontractor owes. Based on the agreement between the company and subcontractor, payments can be made to a specified G-account belonging to the subcontractor.

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• Key Concepts: 
  Chain liability is a concept in SAP Financial Accounting (FI) that allows for the automatic transfer of liabilities from one company code to another. This is done through the use of a chain of company codes, which are linked together in a chain. The chain liability concept is used to ensure that liabilities are transferred from one company code to another in a timely and accurate manner. 
  
  How to use it: 
  In order to use the chain liability concept, the user must first create a chain of company codes. This can be done by creating a new chain in the SAP system and then linking the company codes together in the chain. Once the chain is created, the user can then set up the chain liability rules for each company code in the chain. These rules will determine how liabilities are transferred from one company code to another. 
  
  Tips & Tricks: 
  When setting up the chain liability rules, it is important to ensure that all of the company codes in the chain are properly linked together. This will ensure that liabilities are transferred accurately and efficiently between all of the company codes in the chain. Additionally, it is important to keep track of any changes that are made to the chain liability rules, as these changes may affect how liabilities are transferred between company codes. 
  
  Related Information: 
  The chain liability concept is closely related to other concepts in SAP Financial Accounting such as intercompany accounting and intercompany reconciliation. Additionally, it is important to understand how other concepts such as foreign currency valuation and exchange rate differences can affect how liabilities are transferred between company codes.