Speed up your OTC (order-to-cash) cycle by eliminating the inherent delays of paper-based processes.
Frequently Asked Questions:
What are the four payment methods in SAP?
The answer depends on context. Generally, in an SAP scenario, “payment methods” refers to how funds are transferred. In that case, the four most common payment methods in SAP are eCheck, ACH transfer, credit card, and debit card. Outside of this context, “payment method” may also refer to options and terms related to when a customer can pay (or must pay). In that case, “payment methods” include milestone/periodic billing, payment guarantees, pre-payments (including partial down payments), and “payment on account.” In this last case, the full amount of the transaction is added to the customer’s accounts receivable balance for payment at a later date.
What is a payment processing system?
A payment processing system verifies the legitimacy of transactions and transfers funds electronically between the appropriate parties. Every electronic transaction (including ACH transfer, eCheck, and credit and debit cards) must pass through some kind of payment processing system.
What is an SAP payment request?
An SAP payment request is a notional transaction which logs a request for a down payment. It is not generated by a customer’s open item, but rather by the request for a down payment. It is strictly informational, not an indication of a real transaction or of any funds being owed. When a payment request is created in SAP, it logs an open line item in the subledger for that customer account, but it does not affect the books until the customer makes a payment. At that point, the payment request is converted into a down payment, and an associated open item is created along with an invoice. Reconciliation is required between the cleared invoice line item and the cleared down payment line item.
How does SAP payment processing work?
In a self-service portal with SAP payment integration, the customer sees a list of open items in the SAP FI-AR module pulled from SAP in real time. When the customer selects and pays off the invoice, the application clears that open item in SAP and logs the liability to a GL clearing account which waits for the bank to transfer the funds.