What is statute of limitations period in SAP IS-PS-CA - Public Sector Contract Accounts Receivable and Payable?

SAP Term: statute of limitations period

• Component: IS-PS-CA

• Component Name: Public Sector Contract Accounts Receivable and Payable

• Description: A statute in a common law legal system setting forth the maximum period of time, after certain events, that legal proceedings based on those events may begin.

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• Key Concepts: 
  The statute of limitations period is a time limit set by law for a creditor to take legal action against a debtor for an unpaid debt. In the IS-PS-CA Public Sector Contract Accounts Receivable and Payable component of SAP, the statute of limitations period is used to determine when a debt is no longer legally enforceable. 
  
  How to use it: 
  The statute of limitations period is set in the SAP system and can be adjusted as needed. When a debt reaches the end of its statute of limitations period, it is automatically marked as “uncollectible” in the system. This allows the creditor to write off the debt without having to take legal action against the debtor. 
  
  Tips & Tricks: 
  It is important to keep track of the statute of limitations period for each debt in order to ensure that it is not enforced beyond its expiration date. Additionally, it is important to note that some states have different statutes of limitations periods for different types of debts, so it is important to be aware of these differences when setting up the system. 
  
  Related Information: 
  The statute of limitations period can be found in the SAP system under the “Accounts Receivable” tab. Additionally, more information about statutes of limitations can be found on the website for the National Conference of State Legislatures.