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

collection strategy - Overview

• Component: FI-CA

• Component Name: Contract Accounts Receivable and Payable

• Description: A procedure that defines, as part of Collections Management, the sequence of the collection steps that are undertaken for a given business partner.

collection strategy - Details

• 
  Key Concepts: 
  Collection strategy is a feature of the FI-CA Contract Accounts Receivable and Payable component of SAP. It is used to define the rules and processes for collecting payments from customers. It allows users to define payment terms, payment methods, and payment deadlines for each customer. It also allows users to set up automatic reminders for overdue payments.
  
  How to use it: 
  To use the collection strategy feature, users must first define the payment terms, payment methods, and payment deadlines for each customer. This can be done in the SAP system by creating a collection strategy for each customer. Once the collection strategy is created, it can be assigned to each customer's account. The collection strategy will then be used to automatically remind customers of overdue payments and to process payments according to the defined terms.
  
  Tips & Tricks: 
  When creating a collection strategy, it is important to consider the customer's payment history and preferences. This will help ensure that the collection strategy is tailored to each customer's needs. Additionally, it is important to regularly review and update the collection strategy as needed in order to ensure that it remains effective.
  
  Related Information: 
  For more information on using the collection strategy feature in SAP FI-CA Contract Accounts Receivable and Payable, please refer to the SAP Help documentation.