What is 'collection procedure' in SAP FI - Financial Accounting?

collection procedure - Overview

• Component: FI

• Component Name: Financial Accounting

• Description: A procedure for automatic payment settlement occurring in the form of a bank transfer, check, or settlement payment order.

collection procedure - Details

• 
  Key Concepts: 
  A collection procedure is a feature of SAP Financial Accounting (FI) that allows users to manage and track customer payments. It is used to define the steps that should be taken when collecting payments from customers, such as sending out reminders or taking legal action. The collection procedure also allows users to set up payment plans and track the progress of payments. 
  
  How to use it: 
  To use the collection procedure, users must first define the steps that should be taken when collecting payments from customers. This includes setting up payment plans, sending out reminders, and taking legal action if necessary. Once the steps have been defined, users can then assign them to specific customers and track their progress. 
  
  Tips & Tricks: 
  When setting up a collection procedure, it is important to ensure that all steps are clearly defined and that they are tailored to each customer’s individual situation. Additionally, it is important to regularly review the progress of payments and take any necessary action if payments are not being made on time. 
  
  Related Information: 
  For more information on SAP Financial Accounting (FI) and the collection procedure, please refer to the SAP Help Portal or contact your local SAP representative.