What is circular posting in SAP FI - Financial Accounting?

SAP Term: circular posting

• Component: FI

• Component Name: Financial Accounting

• Description: Document that does not change the account balance, because both sides of the document are posted on the same account.

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• Key Concepts: 
  Circular posting is a feature of SAP Financial Accounting (FI) that allows for the automatic posting of documents in a continuous loop. This feature is used to post documents in a specific order, such as when a company needs to post documents in the same order each month. The documents are posted in the same order each time, eliminating the need for manual intervention. 
  
  How to use it: 
  To use circular posting, you must first create a document template that contains all of the necessary information for the document. This template can then be used to create a circular posting document. Once the document is created, it can be posted automatically in the same order each time. 
  
  Tips & Tricks: 
  When creating a circular posting document, it is important to ensure that all of the necessary information is included in the template. This will ensure that the document is posted correctly each time. Additionally, it is important to check that all of the documents are posted in the correct order. 
  
  Related Information: 
  Circular posting is often used in conjunction with other features of SAP Financial Accounting, such as automatic payment processing and automatic invoice processing. Additionally, circular posting can be used to post documents from multiple sources, such as different vendors or customers.