What is down payment chain in SAP FI-AF-DPC - Down Payment Chains?

SAP Term: down payment chain

• Component: FI-AF-DPC

• Component Name: Down Payment Chains

• Description: A down payment chain groups all transactions belonging to one contract. The first thing you do when you create a down payment chain is enter the contract data. Transactions can then be created for a down payment chain, for example an advance payment, several partial invoices and a final invoice.

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• Key Concepts: 
  Down payment chains are a feature of SAP Financial Accounting (FI) that allow for the automatic creation of down payments for vendors. This feature allows for the automatic creation of down payments based on the vendor’s payment terms and the amount of the invoice. The down payment chain is used to ensure that the vendor receives the correct amount of money in a timely manner. 
  
  How to use it: 
  To use the down payment chain, you must first set up a vendor master record with the appropriate payment terms. Once this is done, you can create a down payment chain for each vendor. The chain will then be used to automatically create down payments for each invoice that is created for that vendor. 
  
  Tips & Tricks: 
  When setting up a down payment chain, it is important to make sure that all of the payment terms are correctly entered into the system. This will ensure that the correct amount of money is sent to the vendor in a timely manner. Additionally, it is important to keep track of any changes to the payment terms as these can affect how much money is sent to the vendor. 
  
  Related Information: 
  For more information on setting up and using down payment chains in SAP Financial Accounting, please refer to SAP Help documentation or contact your local SAP support team.