What is procurement card in SAP SD - Sales and Distribution?

SAP Term: procurement card

• Component: SD

• Component Name: Sales and Distribution

• Description: A payment card issued on behalf of a company to employees for purchasing items up to a given amount. Procurement cards may only be accepted by certain merchants and often require additional information for authorization and settlement, such as a budget number or material text. Settlement is made after goods issue.

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• Key Concepts: 
  Procurement cards are a type of payment method used in SAP Sales and Distribution (SD) to purchase goods and services. They are typically issued by a company to its employees and allow them to make purchases without having to use cash or a check. The card is linked to the company’s bank account, and the company is responsible for paying the vendor for the goods or services purchased. 
  
  How to Use It: 
  In SAP SD, procurement cards can be used to purchase goods and services from vendors. The cardholder will enter their card information into the system, and the vendor will be paid directly from the company’s bank account. The cardholder will then receive an invoice from the vendor, which they must submit to their company for reimbursement. 
  
  Tips & Tricks: 
  When using procurement cards in SAP SD, it is important to ensure that all purchases are within the company’s budget and that all invoices are submitted in a timely manner. Additionally, it is important to keep track of all purchases made with the card, as this information can be used for budgeting and forecasting purposes. 
  
  Related Information: 
  Procurement cards are just one of many payment methods available in SAP SD. Other payment methods include cash, checks, credit cards, and electronic funds transfers (EFTs). Additionally, SAP SD also offers various other features such as pricing rules, discounts, and payment terms that can be used to manage payments more effectively.