A customer informs, that he will pay an outstanding receivable within a specified timeframe. This information is stored in the system in the form of a promise to pay. Creation of Promise to Pay(P2P) Go to the transaction FP2P1 and enter the BP. Click on ‘Create Promise’ button to create new Promise. The agent enters the following parameters for the new promise to pay: • Reason • Category • Start date • Correspondence creation After entering this data, the agent can simulate creation of the promise to pay. Valuation of P2P via TCODE - FP2P3 and FP2P Configuration To configure the Promise to pay, go to the transaction FICAIMG and navigate to the below highlighted node. Define Categories: Provide Category and Name. Payment Dates (Monthly, Every 2 Months, ...): Time interval between two sequential instalments. Number of Payment Dates: Number of payment dates for the promise to pay. The value specified here is used to calculate the amount and due date of the instalments. Define Reasons for Creation: Create new reason and save the process. Define specifications for creation: In this activity you define the specifications for the standard entry and the fast entry (CRM) of promises to pay. Select Use from the list and select Category and the reason.

This blog walks you through the configurations required for determining the due date of a FICA document.  The FICA document due date refers to the date by which a payment is expected or due for a particular financial document or transaction. The due date is typically determined based on the terms and conditions of the contract or agreement associated with the transaction. For example, in the case of a billing document generated in SAP FICA, the due date represents the deadline for the customer to make the payment for the billed amount. The due date is usually specified in the billing document itself, indicating when the payment should be received. The FICA due date is important for both the billing entity and the customer as it sets the timeline for payment processing, late payment penalties, and cash flow management. It helps ensure that payments are made in a timely manner and assists in accurate cash forecasting and revenue recognition. Payment terms refer to the conditions and rules that determine when payments are due for financial transactions within the SAP FICA module. Payment terms define the timing and terms under which payments should be made by customers or debtors. Some common components of payment terms in FICA include: Due date calculation: This specifies how the due date for payment is determined. It can be based on a fixed number of days from the billing date or based on a specific day of the month. Discount terms: If early payment discounts are offered, payment terms define the conditions under which the discounts apply. For example, a payment term may offer a 2% discount if the payment is made within 10 days of the billing date. Grace period: A grace period refers to the additional time allowed after the due date before late payment penalties or interest charges are applied. Payment terms can define the length of the grace period, if applicable. Payment methods: Payment terms may specify the acceptable methods of payment, such as checks, bank transfers, credit cards, or electronic payment systems. Late payment penalties : If payments are not received by the due date or within the grace period, payment terms can define the penalties or fees that will be imposed on overdue payments. Payment terms in FICA provide a standardized framework for managing payment expectations, facilitating accurate cash flow management, and ensuring compliance with contractual obligations. These terms can be configured and customized within the SAP FICA system to align with an organization's specific business requirements and practices. Pre-requisite FICA document Configuration Functionality Payment terms determines the due date of a FICA document. This can be configurable based on the requirement. Configuration Payment term is a FI object, and we can configure this using below path. Click on the “Maintain Terms of Payment” option for maintaining new Payment term. Click on “New Entries” button Enter the new payment term and description on this. We are always set the due date based on the client requirement, so all of the values will be different based on the configuration. Select Posting date/Document date/Entry date or No default for calculating due date from the base date. Save the process once filled the required fields. Now new payment term is created in FI side, and we need to map it with FICA configuration. For that, go to the following path.  Click on New Entries button Enter the below details as per the payment term created in the FI side Save the process