What is payment plan in SAP FS-CD - Collections/Disbursements?

SAP Term: payment plan

• Component: FS-CD

• Component Name: Collections/Disbursements

• Description: Payment plan means: A functional area within the system The tab page for the insurance relationship, which contains specifications for the payment option, payment plan key and other controlling parameters for payment plan items. The totality of all payment plan items in an insurance relationship.

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• Key Concepts: 
  A payment plan is a feature of the SAP FS-CD Collections/Disbursements component that allows users to set up and manage payment schedules for customers. It enables users to define payment terms, such as the amount, frequency, and due date of payments. It also allows users to track payments and generate reports.
  
  How to use it: 
  To use the payment plan feature, users must first create a payment plan template. This template defines the payment terms, such as the amount, frequency, and due date of payments. Once the template is created, users can then assign it to customers. The payment plan will then be used to track payments and generate reports.
  
  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 the template should include an installment plan. Additionally, it is important to ensure that the payment terms are clearly defined in order to avoid confusion or disputes.
  
  Related Information: 
  The SAP FS-CD Collections/Disbursements component also includes features such as direct debit processing and credit card processing. Additionally, users can use the component to manage customer accounts and generate invoices.