What is payment guarantee procedure in SAP SD - Sales and Distribution?

SAP Term: payment guarantee procedure

• Component: SD

• Component Name: Sales and Distribution

• Description: A method of assuring that an organization receives payment for products or services it sells or leases. Payment guarantee procedures include export insurance, letters of credit, and payment cards, such as credit cards.

Smart SAP Assistant

• Key Concepts: 
  The payment guarantee procedure in SAP Sales and Distribution (SD) is a process that helps to ensure that customers pay for goods or services they have received. It is used to protect the seller from non-payment or late payment by the customer. The payment guarantee procedure involves the seller providing a guarantee to the customer that they will receive payment for their goods or services, even if the customer does not pay. 
  
  How to use it: 
  The payment guarantee procedure in SAP SD is used when a customer requests a payment guarantee from the seller. The seller can then provide a guarantee to the customer that they will receive payment for their goods or services, even if the customer does not pay. The seller can also set up a payment plan with the customer, which will ensure that payments are made on time. 
  
  Tips & Tricks: 
  When setting up a payment guarantee procedure in SAP SD, it is important to ensure that all parties involved understand the terms of the agreement. It is also important to ensure that all payments are made on time and that any disputes are resolved quickly and efficiently. 
  
  Related Information: 
  For more information about setting up a payment guarantee procedure in SAP SD, please refer to the SAP Help documentation. Additionally, there are many online resources available which provide detailed information about setting up and managing payment guarantees in SAP SD.