What is collection in SAP FI - Financial Accounting?

SAP Term: collection

• Component: FI

• Component Name: Financial Accounting

• Description: The collection of receivables due, especially bills of exchange.

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• Key Concepts: 
  Collection is a term used in SAP Financial Accounting (FI) to refer to the process of collecting payments from customers. This process involves sending out invoices, tracking payments, and managing customer accounts. It also includes the ability to set up payment plans and manage customer credit limits.
  
  How to use it: 
  In SAP FI, collections are managed through the Accounts Receivable (AR) module. This module allows users to create invoices, track payments, and manage customer accounts. It also provides tools for setting up payment plans and managing customer credit limits.
  
  Tips & Tricks: 
  When setting up payment plans for customers, it is important to ensure that the terms are clearly defined and agreed upon by both parties. Additionally, it is important to keep track of customer payments and credit limits in order to avoid any potential issues.
  
  Related Information: 
  The Accounts Receivable (AR) module in SAP FI is closely related to the Collections process. Additionally, the Credit Management (CM) module in SAP FI can be used to manage customer credit limits and payment plans.