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

SAP Term: payment plan

• Component: FS-AM

• Component Name: Account Management

• Description: An overview for the borrower showing the payments that must be made in future towards paying off a loan. These include, for example, interest, repayments, and charges. The payment date is also shown.

Smart SAP Assistant

• Key Concepts: 
  A payment plan is a feature of the FS-AM Account Management component of SAP. It allows users to set up and manage payment plans for customers, vendors, and other entities. Payment plans can be used to manage payments for goods and services, as well as for loan payments. 
  
  How to use it: 
  To use the payment plan feature, users must first create a payment plan template. This template will define the payment terms, such as the amount due, the due date, and any applicable discounts or fees. Once the template is created, users can then create individual payment plans based on the template. The payment plans can be managed and monitored in the system. 
  
  Tips & Tricks: 
  When creating a payment plan template, it is important to consider the needs of the customer or vendor. For example, if a customer needs more time to pay off a loan, it may be beneficial to create a longer-term payment plan with lower monthly payments. 
  
  Related Information: 
  The FS-AM Account Management component also includes features such as account receivable and payable management, credit management, and cash management. These features can be used in conjunction with payment plans to provide a comprehensive solution for managing customer and vendor payments.