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

SAP Term: payment plan principle

• Component: FS-AM

• Component Name: Account Management

• Description: A method for calculating the interest calculation capital of a loan at product level. The interest calculation capital is increased by interest, charges, and insurance premiums that have been capitalized. The interest calculation capital is reduced by the posted repayment clearings, irrespective of the actual incoming payments. The system posts the repayment clearings with the settlement.

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• Key Concepts: 
  The payment plan principle in SAP FS-AM Account Management is a feature that allows users to define payment plans for customers. It enables users to set up payment plans with different payment terms, such as fixed amounts, percentages, or a combination of both. The payment plan principle also allows users to define the payment frequency and the due date for each payment. 
  
  How to use it: 
  To use the payment plan principle in SAP FS-AM Account Management, users must first create a payment plan template. This template defines the payment terms and conditions for the customer. Once the template is created, users can then assign it to a customer account. The customer will then be able to view and manage their payments according to the terms of the payment plan. 
  
  Tips & Tricks: 
  When creating a payment plan template, it is important to consider the customer’s needs and preferences. For example, if a customer prefers to pay in installments, then it may be beneficial to create a template that allows for multiple payments over time. Additionally, it is important to consider any applicable taxes or fees when creating a payment plan template. 
  
  Related Information: 
  For more information on the payment plan principle in SAP FS-AM Account Management, please refer to the official SAP documentation. Additionally, there are many online resources available that provide detailed tutorials and best practices for using this feature.