What is payment distribution in SAP FS-AM - Account Management?

SAP Term: payment distribution

• Component: FS-AM

• Component Name: Account Management

• Description: The determination of how the system is to update payments posted to a clearing account on the corresponding loan account and the triggering of the postings in question. For every payment received that is relevant for payment distribution, the system generates a payment distribution item. In Customizing, report Execute Payment Distribution determines whether the payment on which the payment distribution item is based is to be used to clear open items, for curtailment, or as an advance payment. Then the report triggers the posting of a payment order in the system. The system posts the ordering party item of the payment order on the clearing account, as offsetting posting to the incoming payment item. The system posts the recipient items on the loan account.

Smart SAP Assistant

• Key Concepts: 
  Payment Distribution is a component of the FS-AM Account Management module in SAP. It allows users to manage payments and payment distribution processes. This includes creating payment plans, managing payment schedules, and tracking payments. It also allows users to set up payment rules and conditions for different types of payments. 
  
  How to use it: 
  Payment Distribution can be used to create payment plans for customers, vendors, and other entities. It can also be used to manage payment schedules and track payments. Payment rules and conditions can be set up for different types of payments, such as credit card payments, direct debits, and bank transfers. 
  
  Tips & Tricks: 
  When setting up payment rules and conditions, it is important to consider the different types of payments that may be received. This will help ensure that the correct payment rules are applied to each type of payment. Additionally, it is important to ensure that all payment information is accurate and up-to-date in order to avoid any delays or errors in processing payments. 
  
  Related Information: 
  For more information on Payment Distribution in SAP FS-AM Account Management, please refer to the SAP Help Portal or contact your SAP support team. Additionally, there are many online resources available that provide detailed information on how to use Payment Distribution in SAP.