Terms of payment

[Former Member]

Hi,

I would like to set up a new terms of payment for a customer like 20% 10days, 10% 15days, 15% 20days and net 30days. This is in SD area.

I appreciate your help.

[Former Member · Accepted solution]

This is done in the IMG.

T-Code SPRO

do a search once your there and you'll find it !

[Former Member · Accepted solution]

Thanks Bill,

However I tried to copy one of the available payment key, but I could see only two fields available to enter the percentage. I am not able enter the third percentage. Any idea how to add one more filed?

Shiva

[Former Member]

Hi,

Go to transaction code <b>"OBB8"</b>. Here you can maintain the terms of payment. First of all I would like to correct you. You are giving cash discount, the rate depending upon the no. of days. The less the no. of days the more is the cash discount. That means if the customer gives payment early then he/she will get more discount. The terms of payment should be as under:

<b>1. Within 10 days 20% cash discount.

2. Within 15 days 10% cash discount.

3. Within 20 days 05% cash discount.

4. Within 30 days due net.</b>

The discount rate will decrease as the no. of days increase otherwise thesystem will give you an error <b>"Enter percentage rates in descending order"</b>

<b>Now for your problem:</b>

Go to transaction code <b>"OBB8"</b> -

<b>1. In the</b> payment terms field enter the code as decided by you.

<b>2. In the</b> "sales text" section enter "within 10 days 20% cash discount."

<b>3. In account type</b> select customer and not vendor as this is with regards to sales & not purchase.

<b>4. In the</b> "default for baseline date section" select <b>"posting date."</b>

<b>5. In the</b> payment terms section - you have columns for <b>"percentage"</b> & <b>"no. of days"</b>. For term <b>1</b> enter percentage as <b>10</b> & no. of days as <b>15</b>; for term <b>2</b> enter percentage as <b>8</b> & no. of days as <b>20</b>; for term <b>3</b> there will be no percentage window but you have the no. of days window, enter <b>30</b> in this.

Now press enter. The system will show the following lines in the "explanations" section:

1. Within 15 days 10 % cash discount.

2. Within 20 days 8 % cash discount.

3. Within 30 days Due net.

4. The first one you have already entered in the "sales text" section - "within 10 days 20% cash discount"

SAVE the settings. When you go back you will see the required terms of payment as under:

<b>PayT Sales text

Day limit Explanations

BBBB Within 10 days 20% cash discount

0 Within 15 days 10 % cash discount

Within 20 days 8 % cash discount

Within 30 days Due net</b>

Reward points if solution helps.

Regards,

Allabaqsh G. Patil

[Former Member]

Thanks Allabaqsh Patil for the detailed explanation.

May I know this % discounts that are defined in the payment terms section has any impact at the accounting side like automatic crediting of the discount amount on the customer account? Or should this discounts be processed manually by the accounting person?

Regards,

Shiva

[Former Member]

hi,

kindly go to IMG screen = SD=Master data=Billing=Terms of payment. here u can maintain ur requirement.

regards

KR

[Former Member]

Helo Siva..

go to img....finanical accounting.....accounts receiable and accounts payable.....business transcations.....maintain terms of payments...when you click on maintain terms of payments...you can add new terms of payments as well here...

hpe it will slove your problem...

reward points..if helpful..

cheers....