What is 'settlement mode' in SAP FS-AM-EP-ST - Settlement?

settlement mode - Overview

• Component: FS-AM-EP-ST

• Component Name: Settlement

• Description: A setting in Customizing that specifies whether the results of a settlement calculation are to be debited to the customer account or whether the settlement is to be calculated for information purposes only, without affecting a customer account.

settlement mode - Details

• 
  Key Concepts: 
  Settlement mode is a component of the SAP Financial Accounting (FI) module. It is used to determine how an invoice should be settled, such as through payment or credit. The FS-AM-EP-ST Settlement Mode component allows users to define the settlement rules for each invoice, such as the payment terms, payment methods, and credit limits. 
  
  How to use it: 
  To use the FS-AM-EP-ST Settlement Mode component, users must first define the settlement rules for each invoice. This can be done by setting up payment terms, payment methods, and credit limits. Once these rules are set up, the system will automatically apply them when an invoice is created. 
  
  Tips & Tricks: 
  When setting up the settlement rules for an invoice, it is important to consider the customer’s payment preferences and credit limits. This will ensure that the customer is able to pay the invoice in a timely manner and that their credit limit is not exceeded. 
  
  Related Information: 
  For more information on the FS-AM-EP-ST Settlement Mode component, please refer to the SAP Help Portal or contact your local SAP support team.