What is instruction key in SAP FI-CA - Contract Accounts Receivable and Payable?

SAP Term: instruction key

• Component: FI-CA

• Component Name: Contract Accounts Receivable and Payable

• Description: A function used together with the country of the house bank and the payment method, in automatic payments business, to control the instructions to be sent to the participating bank regarding payment order execution. The instruction key is used in several countries, including Germany, Austria, the Netherlands, Norway, Finland, Spain and Japan.

Smart SAP Assistant

• Key Concepts: 
  Instruction key is a feature in the FI-CA Contract Accounts Receivable and Payable component of SAP. It is used to define the payment terms for a customer or vendor. It is used to determine the due date of an invoice, the payment method, and any discounts that may be applied. 
  
  How to use it: 
  To use the instruction key, you must first create a master record for the customer or vendor. This master record will contain all of the relevant information about the customer or vendor, including their payment terms. Once this is done, you can assign an instruction key to the customer or vendor. This will determine how payments are processed and when they are due. 
  
  Tips & Tricks: 
  When creating an instruction key, it is important to make sure that all of the relevant information is included. This includes any discounts that may be applied, as well as any payment methods that are accepted. Additionally, it is important to make sure that the due date of an invoice is clearly stated in order to avoid any confusion or delays in payment. 
  
  Related Information: 
  The instruction key feature can be used in conjunction with other features in SAP such as payment terms and dunning procedures. Additionally, it can be used to automate certain processes such as invoicing and payments.