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

SAP Term: payment specification

• Component: FI-CA

• Component Name: Contract Accounts Receivable and Payable

• Description: A means of defining the following for the planned payment of a selected set of receivables and payables of one or more business partners: Date of payment Amount Payment method Bank details for bank transfer and automatic debits The payment run uses payment specifications for automatically processing incoming and outgoing payments. During processing of payment lots, payment specifications are used to identify a group of items with notification.

Smart SAP Assistant

• Key Concepts: 
  Payment specification is a feature of the FI-CA Contract Accounts Receivable and Payable component of SAP. It allows users to define payment terms for customers and vendors, such as payment due dates, discounts, and payment methods. This helps to ensure that payments are made on time and that customers and vendors receive the correct amount.
  
  How to use it: 
  To use the payment specification feature, users must first create a payment term in the system. This can be done by entering the details of the payment term, such as the due date, discount rate, and payment method. Once the payment term is created, it can be assigned to customers or vendors in the system.
  
  Tips & Tricks: 
  When creating a payment term, it is important to consider the customer or vendor’s preferences. For example, if a customer prefers to pay by credit card, then it may be beneficial to create a payment term that allows for this option. Additionally, it is important to consider any discounts that may be offered for early payments.
  
  Related Information: 
  The payment specification feature is closely related to other features of FI-CA Contract Accounts Receivable and Payable, such as invoice processing and dunning. Additionally, it is important to consider any legal requirements when creating payment terms for customers or vendors.