What is payment priority in SAP FI - Financial Accounting?

SAP Term: payment priority

• Component: FI

• Component Name: Financial Accounting

• Description: In Russia, a means of classifying payment orders according to what order they must be paid in. If a person or company does not have enough funds to cover all of the payment orders it has issued, they are required by law to prioritise them according to what the payments are for. For example, a company must give top priority to sick pay, but only fourth priority to tax remittance payments: it must pay its sick employees before it pays its taxes. Each payment order bears a number that indicates its priority. For example, 1 denotes sick pay and alimony payments, and 4 denotes tax remittance payments.

Smart SAP Assistant

• Key Concepts: 
  Payment priority is a feature in SAP Financial Accounting (FI) that allows users to prioritize payments for vendors. This feature allows users to set up payment priorities for vendors, so that payments are made in the order of priority. This helps to ensure that vendors are paid on time and in the correct order. 
  
  How to use it: 
  To use the payment priority feature, users must first set up payment priorities for each vendor. This can be done by going to the “Vendor Master Data” screen and selecting the “Payment Priority” tab. Here, users can select the payment priority for each vendor. Once this is done, payments will be made in the order of priority. 
  
  Tips & Tricks: 
  It is important to keep track of payment priorities for each vendor, as this will help ensure that payments are made in the correct order. Additionally, it is important to review payment priorities regularly to ensure that they are up-to-date and accurate. 
  
  Related Information: 
  For more information on setting up payment priorities in SAP Financial Accounting (FI), please refer to the SAP Help documentation. Additionally, there are many online tutorials and videos available that provide step-by-step instructions on how to set up payment priorities in SAP FI.