What is smoothing in SAP FS-CD - Collections/Disbursements?

SAP Term: smoothing

• Component: FS-CD

• Component Name: Collections/Disbursements

• Description: Function for calculation of payment plan subitems Uneven amounts can occur when splitting payment plan items, which can in turn lead to uneven open items. Smoothing prevents this by using the settings in the IMG to create payment plan subitems that are equal in terms of amounts.

Smart SAP Assistant

• Key Concepts: 
  Smoothing is a feature of the SAP FS-CD Collections/Disbursements component that allows for the automatic adjustment of payment amounts to account for differences in the expected and actual payment amounts. This feature helps to ensure that payments are made on time and in the correct amount. 
  
  How to use it: 
  To use smoothing, first configure the payment terms in the system. This includes setting up the payment terms, such as the payment frequency, payment amount, and any other relevant information. Once this is done, the system will automatically adjust the payment amounts to account for any discrepancies between the expected and actual payments. 
  
  Tips & Tricks: 
  When configuring smoothing, it is important to ensure that all relevant information is included in the setup. This includes any applicable taxes or fees that may be associated with the payments. Additionally, it is important to ensure that all payment terms are configured correctly so that payments are made on time and in the correct amount. 
  
  Related Information: 
  For more information on smoothing and other features of SAP FS-CD Collections/Disbursements, please refer to SAP's official documentation. Additionally, there are many online resources available that provide detailed tutorials and best practices for using this component.