Early payment Discount

[Former Member]

hi All,

I've the following scenario.

If the customer pays promptly(within x days--x fixed), then the client wants to give discount to the customer. However, am not looking at a soln for manual discounts.

Plz suggest some solutions, based on this..

or, let me know if this would work-- I maintain a condition table based on payment terms--for all those customers with such payment terms( paying early) I would maintain discount and add this discount in the pricing proc. But, how do I know that the customer has paid the amount? any suggestions?

Or, is there any other way to handle this?

Regards,

Raghu.

[Former Member · Accepted solution]

hello, friend.

you can maintain early payment discounts by configuring these in your payment terms. the system recognizes the timing of the payments posting and could propose discounts based on the payment terms you configured. normally, the payments posting is done on FI side, instead of SD. possible tcodes used by FI in posting payments are F-28, F-01/02, etc.

hope this helped you.

regards.

[Former Member · Accepted solution]

hi Johnathan,

thank you very much.

However, I want to know more details on how does it work?

I found a terms of payment as Within 13 days 1,5 % cash discount

And, if I configure the baseline date as posting date-then where will the system propose the discount? am not clear how it works? do I configure the PP with a cash discount CType and ..?

how exactly does it work? plz explain in detail..

Regards,

Raghu.

[Former Member · Accepted solution]

hello again.

no, you don't have to include the payment discount as price condition records nor do you have to create condition types to be included in the PP.

let us say your payment terms looks something like this...

7 days, 3%

14 days, 2%

net of 30 days.

this means, your customer gets 3% discount when he pays within 7 days, 2% within 14 days (after 7 days) and no discount within 30 days (after 14 days).

you do not see the actual discount in SD. the discount will be reflected in FI when payment is posted with reference to the invoice. the baseline that has been configured in the payment terms and the system date will be the bases for calculation, unless another baseline has been specified either by SD in the sales order or by FI during the actual posting or in A/R (i.e. tcode FBL5N).

when the collection is posted, the system calculates the possible discount due the customer. at this point, i seem to recall that it will be now FI's responsibility to effect the discount. FI sometimes requests that SD posts the payment (as in one of our projects) but this is not recommended and we have intentionally forgotten how this is done (hahaha), for audit security reasons.

regards.