What is chain liability method in SAP FI-AP - Accounts Payable?

SAP Term: chain liability method

• Component: FI-AP

• Component Name: Accounts Payable

• Description: A system object that is used in the Netherlands for chain liability procedures. It contains the following information: The general percentage rate of tax and social security contributions, which are to be deducted from wages, and are fixed by the Dutch government The payment block reason for blocking payments to sub-contractors whose certificates have expired The partner bank type of the sub-contractor's blocked account

Smart SAP Assistant

• Key Concepts: 
  The chain liability method is a feature of SAP's FI-AP Accounts Payable module. It allows users to create a chain of liabilities for a single vendor invoice. This means that multiple payments can be made against the same invoice, with each payment being linked to the previous one. This helps to ensure that all payments are accounted for and that the vendor is paid in full. 
  
  How to use it: 
  To use the chain liability method, users must first create a vendor invoice in SAP. Once the invoice is created, users can then create a chain of liabilities for the invoice. This can be done by entering the amount of each payment and selecting the “chain liability” option. The system will then link each payment to the previous one, creating a chain of liabilities for the invoice. 
  
  Tips & Tricks: 
  When using the chain liability method, it is important to ensure that all payments are accounted for and that the vendor is paid in full. To do this, users should always check the total amount of payments made against an invoice before submitting it for payment. 
  
  Related Information: 
  The chain liability method is just one of many features available in SAP's FI-AP Accounts Payable module. Other features include automatic payment processing, vendor master data management, and more. For more information about these features, please refer to SAP's official documentation.