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

SAP Term: collection success

• Component: FI-CA

• Component Name: Contract Accounts Receivable and Payable

• Description: A figure that is based on using the incoming payments recieived within a specified period to measure the results of the activities of Collections Management.

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• Key Concepts: 
  Collection success is a term used in the FI-CA Contract Accounts Receivable and Payable component of SAP. It is a measure of how successful a company is in collecting payments from its customers. It is calculated by dividing the total amount of payments collected by the total amount of invoices sent out. 
  
  How to use it: 
  In order to calculate collection success, you must first enter the total amount of invoices sent out and the total amount of payments collected into SAP. Once this information is entered, SAP will automatically calculate the collection success rate. This rate can then be used to measure the effectiveness of a company’s collection efforts. 
  
  Tips & Tricks: 
  It is important to keep track of all invoices sent out and payments collected in order to accurately calculate collection success. Additionally, it is important to regularly review collection success rates in order to identify areas for improvement. 
  
  Related Information: 
  Collection success is closely related to other metrics such as days sales outstanding (DSO) and customer delinquency rate. These metrics can be used together to gain a better understanding of a company’s collection efforts.