What is supplier financing in SAP FI-AP - Accounts Payable?

SAP Term: supplier financing

• Component: FI-AP

• Component Name: Accounts Payable

• Description: A financing process that optimizes cash flow between a buyer and a supplier. The buyer starts the process by handing over supplier invoices from key suppliers to a factor often a bank. The factor remits the invoiced amount to the supplier before the actual due date and collects the money from the buyer on the due date.

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• Key Concepts: 
  Supplier financing is a type of financing that allows a company to pay its suppliers over an extended period of time. This type of financing is typically used when a company does not have the cash flow to pay its suppliers in full at the time of purchase. In SAP, supplier financing is managed through the FI-AP Accounts Payable component. 
  
  How to use it: 
  In SAP, supplier financing is managed through the FI-AP Accounts Payable component. This component allows users to set up payment terms for suppliers, such as payment due dates and payment amounts. It also allows users to track payments made to suppliers and reconcile accounts with suppliers. 
  
  Tips & Tricks: 
  When setting up supplier financing in SAP, it is important to ensure that all payment terms are clearly defined and agreed upon by both parties. It is also important to ensure that all payments are made on time in order to maintain a good relationship with suppliers. 
  
  Related Information: 
  For more information on supplier financing in SAP, please refer to the SAP Help Portal or contact your local SAP support team.