Block Key/payment term

[Former Member]

Hi,

what is the purpose of choosing block key and payment method option in OBB8 (payment terms).

If we choose a payment method in OBB8 and a different payment method in a vendor master which payment mehod will be taken during APP?

Thanks,

Nivi

[Former Member]

Nivi,

When entering postings to a customer or vendor account for which the terms of payment key displayed has been entered in the master record, this blocking reason is proposed together with the terms of payment.

If you enter the terms of payment key later in the line item, the blocking reason originally entered has no effect.

same applies to payment method.

All payment methods are displayed in the customer or vendor master record in the screen for selecting the payment method. Here you select the required payment method by marking it; the system transfers the payment methods to the customer/vendor master record.

points will be appreciated.

[Former Member]

Block key - Using this indicator will allow you to block the payment (manual and automatic) based on the settings in OB27. We have an option to change the block key during APP.

Payment Method - The payment method determines how payments are to be made, e.g. by check, bank transfer or bill of exchange. Its country specific.

Specifying payment methods only affects the selection of payment methods by the payment program; it does not affect the selection of the accounts and documents to be processed. For example, if a certain account only permits payment with payment method 'C' (Check) the items from this account will be listed in the exception list after the program has run, since the payment program would have been unable to find a permitted payment method.

Pls award points if helpful

regards,

radhika

Message was edited by:

kolipara radhika

[Former Member]

I understood the block key, but not payment method.

Let's say we have chosen payment method 'T' for a vendor in master record and have chosen a payment term that has a payment method 'C'. When we run APP, which payment method will be used to pay: T or C.

I didn't get the concept why there is an option in payment term and its use since we have to define the payment method in the master data.

Thanks,

Nivi

[Former Member]

T

[Former Member]

Hi Nivi,

If you have defined Payment term"T" in the master record and changed it to "C" in the Invoice at the time of posting. The APP will consider Payment Term "C" at the time of making the payment.

I believe all your queries are answered.

Regards,

Nitin.

[Former Member]

Not really.

Thanks,

Nivi

[Former Member]

Nivi,

if you define pymt method and block in OBB8 pymt terms, it will transfer to vendor master data. I'm not able to do the test to change pymt method and block in the vendor master data, but I think it will overwrite the value in pymt terms.

points will be appreciated.

[former_member601419]

Nithin is right, the payment method is picked from the invoice and the payment method in the vendor master is overwritten

[Former Member]

Does it mean that though what ever the payment method is chosen in vendor master, once if we choose the payment term (where we define a payment other than a payment method defined in the vendor master) this payment method overwrites the payment method of master data payment method.

Thanks for the responses,

Nivi

[Former Member]

Hi Nivi,

Payment term is for us to know on whether a certain document ois due for payment or not. For example we created a document today and our payment terms is End of month + 30 days, therefore it is due after amonth.

Paymnet method is the way on how the bill is to be paid. either through check, cash (however i think this is not available in SAP) or online. Whatever method is available.

Are we clear with this? Or I am still missing your inquiry?

Regards,

JeCCas_DJ

[Former Member]

Hi Nivi,

Yes thats true, the master data payment term is overwritten in the document with the new payment term.

Regards,

Nitin.