What is collection payment in SAP FI-CA - Contract Accounts Receivable and Payable?

SAP Term: collection payment

• Component: FI-CA

• Component Name: Contract Accounts Receivable and Payable

• Description: A payment for which collection was requested outside of the company by submitting to an external collection agency or to legal dunning proceedings.

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• Key Concepts: 
  Collection Payment is a component of the FI-CA Contract Accounts Receivable and Payable module in SAP. It is used to manage the collection of payments from customers and the payment of invoices to vendors. It allows for the tracking of payments, the reconciliation of accounts, and the generation of reports.
  
  How to use it: 
  Collection Payment can be used to manage customer payments and vendor invoices. It allows users to track payments, reconcile accounts, and generate reports. To use Collection Payment, users must first set up a payment plan for each customer or vendor. This plan will specify when payments are due and how much is due each time. Once the payment plan is set up, users can enter payments as they are received or invoices as they are sent out. The system will then track these payments and invoices and generate reports on them.
  
  Tips & Tricks: 
  When setting up a payment plan for customers or vendors, it is important to make sure that all payment terms are clearly defined. This will help ensure that all payments are received on time and that all invoices are paid in full. Additionally, it is important to regularly review the reports generated by Collection Payment to ensure that all payments and invoices are being tracked correctly.
  
  Related Information: 
  For more information on Collection Payment, please refer to the SAP Help Portal or contact your local SAP representative.