What is 'prepaid payer' in SAP TM - Transportation Management?

prepaid payer - Overview

• Component: TM

• Component Name: Transportation Management

• Description: The business partner that pays for the first part of a transport, according to agreed Incoterms. The prepaid payer may not necessarily be the prepaid bill-to party.

prepaid payer - Details

• 
  Key Concepts: 
  A prepaid payer is a customer in SAP Transportation Management (TM) who pays for freight charges before the goods are shipped. This type of payment is often used when the customer is not familiar with the carrier or when the customer wants to ensure that the goods are delivered on time. 
  
  How to use it: 
  In SAP TM, a prepaid payer is set up as a customer in the system. The customer can then be assigned to a shipment and the freight charges will be paid by the customer before the goods are shipped. The payment can be made via credit card, bank transfer, or other payment methods. 
  
  Tips & Tricks: 
  When setting up a prepaid payer in SAP TM, it is important to ensure that all of the necessary information is entered correctly. This includes the customer’s name, address, contact information, and payment method. It is also important to ensure that the payment method is set up correctly so that payments can be processed quickly and accurately. 
  
  Related Information: 
  Prepaid payers are often used in conjunction with other payment methods such as post-payment or third-party billing. It is important to understand how these different payment methods work together in order to ensure that all payments are processed correctly and on time. Additionally, it is important to understand how freight charges are calculated