In the SAP system, you define the payment terms as rules using a four-character key. Generally, the shorter the credit or payment period the higher the discount offered and vice versa. The terms of payment represent the specifications of the payment conditions such as the number of days by which the payment is to be made or whether there is a discount for early payment. Unless you maintain the correct settings, your system users will find it difficult to process the transactions with the speed and accuracy needed to support the business. This is to handle the business transactions the way you want to meet your organization’s specific processing requirements. Once you have the master data in the system available to your vendors, the next logical step is to configure the system.

Control data ( automatic purchase order, GR-based invoice verification)Īlso Learn: Master Data in SAP Business Transactions in SAP Accounts Payable.

Conditions ( order currency, incoterms etc.).

Correspondence ( dunning procedure, dunning level, dunning block etc ).

Payment transactions ( payment terms, payment methods, tolerance group etc ).

Accounting information ( recon A/C, w/tax code etc).

Payment transactions ( bank key, bank etc ).

However, you can prevent inconsistencies in master data by maintaining it centrally. Though Master data may have inconsistencies. The master data further controls how business transactions are recorded and processed by the system.

In addition to FI, these are also used in materials management ( MM). It can also be the tax information, bank details, account control data and payment and purchasing data. Such as their details – name, address, language and phone number. The vendor master record contains all the data you need to manage your vendors. For a better understanding of FI-AP, I will include the following sections:.

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