What is incoming payment principle in SAP (FS-AM - Account Management)?

SAP Term: incoming payment principle

• Component: FS-AM

• Component Name: Account Management

• Description: A method for calculating the interest calculation capital of a loan at product level. The interest calculation capital is increased by disbursements and by interest, charges, and insurance premiums that have been capitalized. The interest calculation capital is reduced by the actual incoming payments, meaning by the repayments posted. The system posts the repayments with the settlement after the incoming payment of the installment. For products with the incoming payment principle, the interest share within the installment shifts if the payment is late.

Smart SAP Assistant

• Key Concepts: 
  Incoming payment principle is a feature of the FS-AM Account Management component of SAP. It allows users to process incoming payments quickly and accurately. The principle is based on the idea that incoming payments should be processed as soon as they are received, and that the payment should be allocated to the correct account. This helps to ensure that payments are not delayed or misallocated.
  
  How to use it: 
  Incoming payment principle can be used in SAP by setting up a payment rule. This rule defines how incoming payments should be processed, including which accounts they should be allocated to. Once the rule is set up, incoming payments can be processed automatically according to the rule.
  
  Tips & Tricks: 
  When setting up a payment rule for incoming payments, it is important to ensure that all relevant accounts are included in the rule. This will help to ensure that all payments are correctly allocated and that no payments are missed or misallocated.
  
  Related Information: 
  Incoming payment principle is closely related to other features of FS-AM Account Management, such as payment processing and account reconciliation. These features can be used in conjunction with incoming payment principle to ensure that all payments are processed quickly and accurately.