When configuring the payment program you can set up one of the following strategies for outgoing payments:
Make payments with the highest possible cash discount.
Make payments as late as possible even if this means losing cash discount.
Make payments according to a strategy that is midway between these two extremes.
If the highest possible cash discount is desired, flag the field Max. Cash Discount: See Company Code Specifications: Graphic. The payment program applies cash discount term 1 to these open items.
If you specified a minimum percentage rate (see Company Code Specifications: Graphic, outgoing payment with cash discount from), the payment program settles items only if the discount percentage rate entered can be reached in the current payment run. If not, payment is made when the amount is due net. If you wish to make payment as late as possible, enter 99 percent as the minimum percentage rate (during payment program configuration). This determines that payments are always made net.
By means of the minimum percentage rate, you can also define strategies that lie between the two extremes (due net and maximum discount).
regards
jaya
Hello Mallika,
Specifies the number of days by which the cash discount periods and period for the due date for net payment may be exceeded.
When determining the due date, the system adds the number of days specified here to the dates. Payment is then sometimes made after the exact date in the terms of payment.
thanks
venkat
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