What is collective invoice account in SAP FI - Financial Accounting?

SAP Term: collective invoice account

• Component: FI

• Component Name: Financial Accounting

• Description: A special contract account in which line items belonging to different contract accounts are grouped together to enable the same dunning or payment procedure to be applied to all the line items.

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• Key Concepts: 
  A collective invoice account is a type of account in SAP Financial Accounting (FI) that allows multiple invoices to be grouped together and paid in one payment. This type of account is useful for companies that have multiple vendors or suppliers that they need to pay on a regular basis. The collective invoice account allows the company to make one payment for all the invoices, instead of having to make multiple payments. 
  
  How to use it: 
  To use a collective invoice account, the company must first create the account in SAP FI. This can be done by going to the Accounts Payable (AP) module and selecting “Create Collective Invoice Account”. Once the account is created, the company can then add invoices to the account and make one payment for all of them. 
  
  Tips & Tricks: 
  When creating a collective invoice account, it is important to make sure that all of the invoices are for the same vendor or supplier. This will ensure that all of the invoices are paid in one payment and will help to streamline the payment process. 
  
  Related Information: 
  For more information on collective invoice accounts, please refer to SAP’s documentation on Accounts Payable (AP). Additionally, there are many online tutorials and videos available that provide step-by-step instructions on how to create and use collective invoice accounts in SAP FI.