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

SAP Term: payment distribution proxy

• Component: FS-AM

• Component Name: Account Management

• Description: An encapsulation mechanism that enables applications to access the payment distribution function, irrespective of whether this is in the same or another logical system. There is the following restriction: The clearing account must be in the same logical system as the payment distribution.

Smart SAP Assistant

• Key Concepts: 
  Payment Distribution Proxy (PDP) is a component of the SAP FS-AM Account Management module. It is used to automate the payment distribution process, allowing users to define rules for how payments should be distributed among different accounts. This helps to streamline the payment process and reduce manual effort. 
  
  How to use it: 
  To use PDP, users must first define the payment distribution rules. This includes specifying the accounts that should receive payments, as well as the order in which payments should be distributed. Once these rules are defined, PDP will automatically distribute payments according to the rules. 
  
  Tips & Tricks: 
  When defining payment distribution rules, it is important to consider how payments should be distributed in different scenarios. For example, if a payment is received that is larger than the total amount of accounts specified in the rule, it is important to consider how the remaining amount should be handled. 
  
  Related Information: 
  For more information on Payment Distribution Proxy, please refer to the SAP Help Portal or contact your local SAP support team.