What is lead days in SAP FS-AM - Account Management?

SAP Term: lead days

• Component: FS-AM

• Component Name: Account Management

• Description: The period that ensures that the account-managing system sends the billing items early to the bill creation system that sends the items to the open item management system. The open item management system then creates open items for the billing items before the actual due date. If payments are received early from the business partner, this means that it is more likely that corresponding open items already exist for these incoming payments.

Smart SAP Assistant

• Key Concepts: 
  Lead days are a feature of the FS-AM Account Management component of SAP. Lead days are used to define the number of days before a payment is due that a customer should be notified. This allows customers to plan their finances accordingly and helps to ensure that payments are made on time. 
  
  How to use it: 
  Lead days can be set up in the FS-AM Account Management component of SAP. To do this, navigate to the “Lead Days” tab in the “Accounts” section. Here, you can enter the number of lead days you would like to set for each customer. Once saved, this will be applied to all future payments due from that customer. 
  
  Tips & Tricks: 
  It is important to set lead days for each customer as this will help ensure that payments are made on time. It is also important to review and update lead days regularly as customer payment habits may change over time. 
  
  Related Information: 
  For more information on setting up lead days in SAP, please refer to the SAP Help documentation at https://help.sap.com/viewer/product/FS-AM_ACCOUNT_MANAGEMENT/latest/en-US