What is 'payment type' in SAP PSM-FM - Funds Management?

payment type - Overview

• Component: PSM-FM

• Component Name: Funds Management

• Description: The method by which the government budget or financial fund is paid out. Possible payment types include, for example, direct payment, authorized payment, and fast payment.

payment type - Details

• 
  Key Concepts: 
  Payment type is a feature of SAP Funds Management (PSM-FM) that allows users to define the payment methods for vendor invoices. It is used to determine the payment method for each vendor invoice, such as check, wire transfer, or electronic payment. Payment types can also be used to define the payment terms, such as due date and discount terms. 
  
  How to use it: 
  Payment types are defined in the Funds Management module of SAP. To create a payment type, go to the Funds Management menu and select “Payment Types”. Enter the payment type name and description, then select the payment method and payment terms. Once the payment type is saved, it can be assigned to vendor invoices. 
  
  Tips & Tricks: 
  When creating a payment type, it is important to consider the payment terms and discount terms that will be associated with it. This will ensure that vendors are paid on time and that discounts are taken advantage of when applicable. 
  
  Related Information: 
  For more information on setting up payment types in SAP Funds Management, please refer to the SAP Help documentation.