Terms of pay

[Former Member]

Hii experts,

If based on the terms of payment a custr is awarded 1% disc if he pays within 10 days, lets say the invoice amount is 100/- so if he settles within 10 days he/she shld pay only 99/-.

How this is settled as the customer pays 100/- and then he/she gets 1/-disc.

Is that a debit note is to be released for that 1/-, and if yes how an account is maintained regarding such amounts (1/- ) for which we need to release a debit note.

assuring rewards

montee

[Former Member · Accepted solution]

hi,

in the transaction code F-28 when the fi/co consultant r posting in the amount they we consider the term of payment . in the manu of F-28 the cash discount amount will be displayed directly depending up on your payment terms.

Reward points if the answer is helpful

Regards,

Murali

[Former Member]

hi,

it is not at all given as debit note,if at all it is given it is a credit not which will be effected..

usually buisness is an ongoing process,excess is at times settled at a later period of time.depending on the relation between customer and the buisness.

regards

raghav.

[Former Member]

Terms of payment are entered in the pricing procedure using the condition type SKTO. This will pick up the percentage from the payment terms from Customer master or Sales order and will list it as a statistical value in the sales order pricing procedure.

This payment terms will get activated in the billing document and can be seen during clearing of the accounting document in T.Code: f-28

we will do the settings in the pricing procedure in T.code:V/08.

With the condition type SKTO we maintain

statistical value: Check

Requirement: 9 - Qualified for Cash Discount

AltCBV: 11 - Cash Discount Base.

Regards

AK

reward points if helpful

[Former Member]

Thanks Ayub,

Actually i got ur point regarding the calculation of Terms of pay, i am concerned regarding the settlement of it.

i.e how is that above mentioned 1/- is settled as bcos while the custr sends the amount for payment he/she will send 100/- 1i.e the full amount and then he will be provided with the discount.

regards

montee

[Former Member]

hi,

if the customer sends the whole amount then the cash discount will not be taken into consideration.

REward points if the answer is helpful

Regards,

Murali

[Former Member]

If he/she is sending within 10 days by practice they will send Rs.99 only and not Rs. 100.

If by mistake they send Rs.100 the Rs1. will be credit remaining on the account. This a standard procedure in any business.

Regards

AK