Hello Guys - Need your expertise on customer invoices.
We sold our product but the customer will pay us monthly via direct debit.
We will invoice the customer once at the start of the contract
Then monthly, the customer will pay via direct debit. Meaning, we will be instructing our bank to automatically get funds from our customer's bank account.
On a monthly basis, every time we collect the funds, is there a way for SAP to automatically do cash application against the invoice we raised at the start of the contract? Cash application is also called cash allocation which is the process of clearing or offsetting the customer invoice against the cash receipts.
Kindly share your thoughts how this can be accomplished. I'm thinking whether it can be accomplished via changing how we invoice or doing changes such that SAP is wise enough to do the cash allocation.