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

SAP Term: payment distribution directive

• Component: FS-AM

• Component Name: Account Management

• Description: An instruction indicating how the system is to distribute an incoming payment, which is made to the clearing account, over one or more loan accounts. Payment distribution directives are differentiated by the following categories: Customer request The rule set in Customizing determines whether the system takes the customer's request into account when distributing a payment. Bank directive The directive from the bank specifies exactly how the payment is to be distributed and overrides the rule set.

Smart SAP Assistant

• Key Concepts: 
  Payment Distribution Directive (PDD) is a feature of the FS-AM Account Management component of SAP. It allows users to define rules for how payments should be distributed among multiple accounts. This helps to ensure that payments are allocated correctly and efficiently. 
  
  How to use it: 
  To use the Payment Distribution Directive, users must first define the rules for how payments should be distributed. This includes specifying the accounts to which payments should be allocated, as well as the order in which they should be allocated. Once these rules have been defined, they can be applied to any payment transaction. 
  
  Tips & Tricks: 
  When defining rules for payment distribution, it is important to consider the order in which payments should be allocated. This will help ensure that payments are allocated correctly and efficiently. Additionally, it is important to ensure that all accounts specified in the rule are valid and active. 
  
  Related Information: 
  For more information on Payment Distribution Directive, please refer to the SAP Help Portal or contact your local SAP support team.