What is local instrument code in SAP FI-AR - Accounts Receivable?

SAP Term: local instrument code

• Component: FI-AR

• Component Name: Accounts Receivable

• Description: International key that is applied to SEPA direct debits. In the European Payments Council EPC documentation and general SEPA documentation, the local instrument code or value refers to the direct debit type being used for a mandate hence the German term Lastschriftart. &Example& Local instrument codes CORE und COR1 relate to SEPA core direct debits, and local instrument code B2B relates to SEPA business-to-business direct debits.

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• Key Concepts: 
  Local Instrument Code is a component of the FI-AR Accounts Receivable module in SAP. It is used to identify the payment method used by customers when making payments. This code is used to differentiate between different payment methods such as cash, check, credit card, etc. 
  
  How to use it: 
  The Local Instrument Code is used to identify the payment method used by customers when making payments. This code is entered into the system when a customer makes a payment and is then used to track the payment method used. The code can also be used to generate reports on payment methods used by customers. 
  
  Tips & Tricks: 
  When entering the Local Instrument Code into the system, make sure that it is entered correctly. This will ensure that the payment method is tracked accurately and that reports are generated correctly. 
  
  Related Information: 
  The Local Instrument Code is part of the FI-AR Accounts Receivable module in SAP. Other components of this module include customer master data, billing documents, and payment terms.