SAP Financial Accounting (SAP FI) Practice Exam

What are the three configurations required for payment terms?

1. Credit limit, payment frequency, and interest rate

2. Billing address, sales region, and payment gateway

3. Customer or vendor or both, baseline date, discount periods

4. Invoice number, payment method, and transaction fee

The correct answer is: Customer or vendor or both, baseline date, discount periods

The correct answer focuses on the essential configurations that define payment terms in the context of SAP Financial Accounting. Specifically, the inclusion of customer or vendor details, the baseline date, and discount periods is crucial for establishing how and when payments are to be made. Having the customer or vendor information is essential as it ensures that payment terms are tailored to the specific agreements or needs between the parties involved. The baseline date serves as a reference point for calculating payment deadlines and discount eligibility, which is fundamental for managing cash flows and financial reporting. Lastly, defining discount periods allows organizations to incentivize timely payments, enhancing their liquidity by encouraging prompt settlements of invoices. In contrast, the other options do not adequately address the foundational aspects of payment terms. They touch on different functions or elements that may have relevance in a broader financial context but do not specifically relate to the configuration of payment terms necessary for effective accounts receivable or accounts payable processes.