What is payment procedure in SAP AP-PAY - FIN Payment Processing?

SAP Term: payment procedure

• Component: AP-PAY

• Component Name: FIN Payment Processing

• Description: The form used to make a payment, for example, domestic bank transfer or international bank transfer.

Smart SAP Assistant

• Key Concepts: 
  Payment procedure is a feature of the SAP Accounts Payable (AP) component of the SAP Financial Accounting (FI) module. It is used to define the payment methods and rules for processing payments to vendors. It also defines the order in which payments are processed and the criteria for selecting payment methods. 
  
  How to use it: 
  The payment procedure is set up in the SAP system by defining a payment program. This program contains all the necessary information about the payment methods, such as bank details, payment terms, and other parameters. The payment program is then assigned to a vendor master record, which determines which payment procedure will be used for that particular vendor. 
  
  Tips & Tricks: 
  When setting up a payment procedure, it is important to consider the different types of payments that may need to be processed. For example, if a vendor requires both domestic and international payments, two separate payment procedures may need to be set up. Additionally, it is important to ensure that all necessary information is included in the payment program, such as bank details and payment terms. 
  
  Related Information: 
  The SAP Accounts Payable (AP) component of the SAP Financial Accounting (FI) module also includes features such as invoice verification and dunning. Additionally, there are several other components of the FI module that can be used in conjunction with AP-PAY FIN Payment Processing, such as Asset Accounting (AA), Funds Management (FM), and Controlling (CO).