What is guarantee of payment in SAP FI - Financial Accounting?

SAP Term: guarantee of payment

• Component: FI

• Component Name: Financial Accounting

• Description: A contract by which a guarantor promises to the creditor of a third party the principal debtor to assume responsibility for the fulfillment of the principal debtor's commitment. Guarantees of payment made are shown in the notes to the balance sheet.

Smart SAP Assistant

• Key Concepts: 
  A guarantee of payment is a type of financial agreement in which one party agrees to pay a debt or other financial obligation of another party if the original debtor fails to do so. This type of agreement is commonly used in international trade, where one party may not be able to obtain credit from the other. In SAP Financial Accounting (FI), a guarantee of payment is recorded as a special type of vendor invoice. 
  
  How to use it: 
  In SAP FI, a guarantee of payment is recorded as a special type of vendor invoice. The vendor invoice must include the details of the guarantee, such as the amount, date, and terms. The vendor invoice must also include the details of the original debtor, such as their name and address. Once the vendor invoice is created, it can be posted to the general ledger and tracked in the system. 
  
  Tips & Tricks: 
  When creating a guarantee of payment in SAP FI, it is important to ensure that all details are accurate and complete. This includes the details of the original debtor, as well as any additional information that may be required for tracking purposes. Additionally, it is important to ensure that all relevant documents are attached to the vendor invoice for easy reference. 
  
  Related Information: 
  For more information on guarantees of payment in SAP FI, please refer to SAP Help documentation or contact your local SAP support team. Additionally, there are many online resources available that provide detailed information on how to use this feature in SAP FI.