Payment terms and discount voor the purchasing invoice

[Former Member]

Hi all,

In the definitions of the payment terms, you can choose how the Due date should be based on: Document date, Posting date, System date or Closing date..we choose for the Document date. (due date = doc. date + 30 days)

In the payment terms you can also define a cash discount if we pay the suppliers invoice within certain days, than we can deduct a discount of the total amount to be paid.

So we define f.e. within 14 days, 2%.

However the title of this colums says: Days after Posting date and the system also react like this.

The posting date of the suppliers invoice can ofcourse be different as the document date of this suppl.invoice.

F.e.: Suppliers Invoice: doc. date 30/9/2008, Posting date: 18/10/2008, Due Date 1/11/2008 (Doc.date + 30 days)

Payment at 25/10/2008 by the payment wizard.

The wizard still deduct 2 % as the due date of this invoice has not been reached, while the 2% should only be deducted if we pay before 14/10/2008.

So as we defined the due date based on the Document date, but the cash discount uses the posting date. (column title)

Is this wrong in the definitions or standard behaviour.

How can I use the cash discount in the payment terms?

Please advise.

Best regards,

Carl Verhagen

[Former Member · Accepted solution]

Hi Carl

In the Cash Discount window there is an option for By Date. Please tick this and test if it calculates better.

Kind regards

Peter Juby

[Former Member · Accepted solution]

Hi Peter,

Thanks for your answer, but using the By Date option is only valid for discount at certain dates of the month as the documentation says.

Also, the documentation always use the posting date as a basedate and not the documentation date. (for A/P invoices)

I have to find another way to solve this.

Best regards,

Carl Verhagen

[Former Member]

Hi Carl

The best would be to log this "requirement" with SAP, although I would expect a system like SAP to have the flexibility to handle this scenario, and sadly it doesn't. This might be a development request though and could take some time to get a solution from SAP. You could also go to the SAP Business One collaboration forum and raise the issue there. In the interim, you will have to get users to change the posting date to reflect as the actual supplier invoice date as a work around, and then use document date as the capture date, although this is not necessary as there is a create date on the tables.

If your supplier terms are all or mostly end of month, you can still consider using the By Date option I mentioned as this is a specific day within the month and not a add to a date function. Best would be to test and see if it gives you the desired results.

Kind regards

Peter Juby

[Former Member]

Hi Carl,

If you use the actual document date as the document date in the system, you can change your payment terms to be based on your document date instead of the posting date. This should make it work.

Bear in mind though, that if you use the date entered as your posting date, the expense will be recorded in that financial period instead of the one in which the expense was incurred, and this can have tax implications.

I usually recommend to use the posting date as the actual date of the invoice.

[Former Member]

Hi Julie,

Thanks for your answer.

For sales (A\R)invoices, yes we use the postingdate as the documentdate and as a base for calculating the due date.

For purchase (A\P) invoices, the document date should, in my opinion, be the base for calculating the due date and not the posting date.

If expenses therefor will be booked in another period it's o.k.

I have to take contact with our partner I think to try to get a solution.

Best regards,

Carl Verhagen

[Former Member]

Hi Carl

Any specific reason for using Document Date? The simplest would be to use Posting Date as this is the date used to post on and relates back to the periods created.

Kind regards

Peter Juby

[Former Member]

Hi Peter,

I'm talking about the A\R invoice.

The supplier sent his invoice with document date 1/10/2008 and his payment terms is payment within 30 days.

We receive the invoice at 3/10/2008 and after control etc. we will post the invoice at 7/10/2008.

If we use the posting date as a base for the due date, the invoice have to be paid at 6/11/2008, but the suppliers due date is 31/10/2008 and that's a difference of 1 nearly week.

If there are problems (f.e. caused by ourself) and the invoice will be booked at 20/10, we still have time to pay it before the due date 31/10 instead of 19/11/2008)

I think that the supplier will not be amused if we use the posting date as the base for calculating the due date.

We can discuss what's right to use, but SAP B1 gives the opportunity to choose between Doc.date, posting date and system date as a base for calculating the Due date but for cash discount it's automatically the posting date??

Best regards,

Carl Verhagen

[jitin_chawla]

Hi Carl,

Check this documentation regarding the cash discounts :

https://websmp207.sap-ag.de/~form/sapnet?_FRAME=CONTAINER&_HIER_KEY=701100035871000437965&_OBJECT=01...;

Regards,

Jitin

[Former Member]

Hi Jitin,

Thanks for your answer and the link to the documentation.

Unfortenately it didn't help to solve my problem.

As of the documenation you can choose to use the posting date as a base for calculating the due date but if you want to use the cash discount, the documentation only shows the After the posting date.

For A/P invoices, we never use the posting date, but the documentdate for calculating the due date.

If we pay the A\R invoice withing f.e. 8 days of the documentdate, we can get a discount of x%, otherwise we have to pay withing 30 days.

But also the A\R invoice which are already behind the 8 days of the documentdate, but does not yet reach the due date, will deduct the discount if we pay.

As I read the documentation, I think it's standard that the posting date will be used for cash discount?

I hope I can find another solution.

Best regards,

Carl Verhagen