What is contract account relationship in SAP FS-CD - Collections/Disbursements?

SAP Term: contract account relationship

• Component: FS-CD

• Component Name: Collections/Disbursements

• Description: Link between business partner and contract account.

Smart SAP Assistant

• Key Concepts: 
  Contract Account Relationship (CAR) is a component of the Financial Services Collection and Disbursement (FS-CD) module in SAP. It is used to define the relationship between a customer and a vendor in terms of payment and collection of invoices. CAR enables customers to set up payment plans with vendors, and also allows vendors to track payments from customers.
  
  How to use it: 
  To use CAR, customers must first create a contract account relationship with the vendor. This is done by entering the customer’s details into the system, such as name, address, contact information, and payment terms. Once the contract account relationship is established, customers can then set up payment plans with the vendor. The payment plan will specify when payments are due, how much is due each time, and any other relevant information.
  
  Tips & Tricks: 
  When setting up a contract account relationship with a vendor, it is important to ensure that all details are accurate and up-to-date. This will help ensure that payments are made on time and that any disputes can be resolved quickly and efficiently. Additionally, it is important to keep track of all payments made through CAR so that any discrepancies can be identified and addressed quickly.
  
  Related Information: 
  CAR is part of the Financial Services Collection and Disbursement (FS-CD) module in SAP. Other components of FS-CD include Accounts Receivable (AR), Accounts Payable (AP), Cash Management (CM), and Credit Management (CM). Additionally, CAR can be integrated with other SAP modules such as Sales & Distribution (SD) and Materials Management (MM).