The document lifecycle clearly indicates the FI-CA processes:
Documents can be posted as receivables (usual form) and sometimes as payables.
Documents can be posted in invoicing (usual form), dunning, or returns processing.
Documents can be posted manually as well.
Cleared and open items are regularly compressed and transferred to the general ledger.
Cleared and open items can be displayed using the account balance display.
Cleared documents that have expired can be archived.
Payments are initiated by business partner (payment lot) or company (payment run). Payments clear open items and can be displayed using the account balance display.
In returns processing, cleared payments are reset, the source receivables are posted as debit items, and return charges are posted. Return charges can be bank charges that are passed on to the business partner or company charges.
In dunning processing, overdue items from cash payers or blocked items from direct debit payers can be dunned. Dunning charges or interest on arrears can be posted.
As a result of the dunning run, items can be submitted to external collection agencies. Payments such as interest and external collection agency charges can be posted.
Interest can be calculated either automatically in the invoicing and dunning run, or manually. Interest can be calculated for open and cleared items, as well as for debit and credit items. Interest documents are posted.
Open documents can be deferred manually. A deferral can take place automatically in returns processing. The original due date is retained in the case of a deferral. If the deferral date is reached and the item is still open, the original due date is used again for further business processes.
Open documents can be integrated into an installment plan. Interests can be calculated using the installment plan. The interest receivable is integrated into the installment plan.
Overdue items can be entered as doubtful, adjusted individually, or written off.