What is payment tolerance in SAP FI - Financial Accounting?

SAP Term: payment tolerance

• Component: FI

• Component Name: Financial Accounting

• Description: The rules for processing payment differences. These rules specify the maximum permissible difference between the actual payment amount and the amount agreed for payment, as well as rules for posting residual items in the case of these maximum amounts being exceeded.

Smart SAP Assistant

• Key Concepts: 
  Payment tolerance is a feature in SAP Financial Accounting (FI) that allows for a certain amount of variance between the amount of an invoice and the amount of the payment. This feature is used to ensure that payments are made accurately and on time. 
  
  How to use it: 
  Payment tolerance can be set up in the SAP system by going to the Financial Accounting (FI) module and selecting the “Payment Tolerance” option. From there, you can set up the parameters for the payment tolerance, such as the amount of variance allowed and the type of payment (e.g., check or electronic transfer). Once these parameters are set, payments will be processed according to the payment tolerance settings. 
  
  Tips & Tricks: 
  It is important to remember that payment tolerance should only be used when necessary. If payments are consistently being made with a large variance, it may be a sign that there is an issue with the invoicing process or with the payment processing system. 
  
  Related Information: 
  For more information on payment tolerance in SAP Financial Accounting (FI), please refer to SAP’s official documentation on Payment Tolerance.