What is payment on account in SAP FI - Financial Accounting?

SAP Term: payment on account

• Component: FI

• Component Name: Financial Accounting

• Description: A payment that is assigned to an account but in contrast to a down payment or partial payment is not yet assigned to a particular accounting transaction.

Smart SAP Assistant

• Key Concepts: 
  Payment on account is a term used in SAP Financial Accounting (FI) to refer to a payment made by a customer before the invoice is due. This type of payment is usually made in advance of the invoice due date and is used to reduce the amount of money owed by the customer. 
  
  How to use it: 
  In SAP FI, payment on account can be recorded in the system by entering the payment information into the customer's account. The payment will then be applied to any outstanding invoices that are due from the customer. 
  
  Tips & Tricks: 
  When recording a payment on account, it is important to ensure that the correct customer account is selected and that all relevant information is entered correctly. This will ensure that the payment is applied correctly and that any outstanding invoices are paid in full. 
  
  Related Information: 
  Payment on account can also be referred to as an advance payment or pre-payment. It is important to note that this type of payment does not necessarily need to be made in cash; it can also be made via credit card or other forms of electronic payment.