What is direct debiting procedure in SAP FI - Financial Accounting?

SAP Term: direct debiting procedure

• Component: FI

• Component Name: Financial Accounting

• Description: A special procedure by which the party liable to pay submits a written instruction to their bank, authorizing them to honor account debit requests.

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• Key Concepts: 
  Direct debiting procedure is a feature of SAP Financial Accounting (FI) that allows customers to make payments directly from their bank accounts. This procedure is used to automate the payment process and reduce the amount of manual work required. It also helps to ensure that payments are made on time and in full. 
  
  How to use it: 
  In order to use the direct debiting procedure, customers must first provide their bank details to the company. This information is then stored in the SAP system and used to initiate payments when they are due. The customer's bank account is then debited for the amount due and the payment is recorded in the SAP system. 
  
  Tips & Tricks: 
  It is important to ensure that all customer bank details are kept up-to-date in order for the direct debiting procedure to work correctly. Additionally, it is important to ensure that all payments are made on time in order to avoid any late payment fees or penalties. 
  
  Related Information: 
  The direct debiting procedure can be used in conjunction with other features of SAP Financial Accounting such as payment terms, payment blocks, and payment methods. Additionally, it can be used in combination with other features such as credit management and cash management.