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Payment Terms

Hai,

I have to create payment terms such as,

Payment between 30-60 days.

means, when credit check is run, system should ignore first 30 days & it should consider only those values which is in between more than 30- less than 60 days.

Net due date will be after 30 days- before 60 days.

I have checked payment terms, in which we can give only fixed no.of days with/without discount. But there is no such kind of option to define payment terms as between 30-60 days.

This payment terms has an impact in Credit check.

How to achieve this in SAP.

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3 Answers

  • Best Answer
    Posted on Dec 20, 2008 at 05:54 AM

    Hi

    See Terms of payment and credit check are two different things processwise

    In simple have a logical look at business scenario

    You are giving a customer a credit limit of Rs 1000 and are giving a payment terms of 10 days

    He buys a product woth Rs 300 on the first day

    He buys a product woth Rs 400 on the second day

    He buys a product woth Rs 300 on the Third day

    This means the credit limit is over for him

    Any order on fourth day should be blocked This is business

    You cant argue that the customer is having 10 days time to pay the Rs 300 which was bought on the first day so i will supply up to 10 days whatever is his orders and that doesnt make sense

    If you do that according to this scenario at the end of 10 day you would have supplied more than Rs 3000 which is nowhere in accordance with his credit limt Rs 1000

    A logical or a smart business doesnt happen that way

    Within no of days of terms of payment it is DUE, morethan the no of days of terms of payment are OVERDUE

    Both dues and over dues form the part of credit check

    In this scenario if you want to register any order on the fourth day and supply you must get back or atleast received the payment from him for the goods supplied on 1st day that is Rs300

    That means you have receive payment in 3 or 4 days against his eligible time of 10 days to reduce your risk

    According to your scenario which you explained in the thread you cannot allow that first 30 days left un attended Even within thirty days are also DUE and these values should logically be included in credit limits

    But if your requirement is that only, you can go ahead with Developments

    Sir once again for that immediate delivery thread how it happens you didnot value the right soln provided by me

    Regards

    raja

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    • For your reference , I will tell you our scenario.

      Client is restricting its customers only on Open items ( billing which is release to accounting, but not yet settled by the customer) at delivery level (Credit group - 02), credit limit will be assigned for each customer.

      In this case, when customer places for requirement. when creating delivery, system has to check for the customer's outstanding (Open item value). if this value is more than assigned credit limit, delivery should be blocked.

      Which is regular scenario, as everyone knows.

      In same case, we have credit horizon period ( in dynamic check), by which we can consider only those open items which falls within in this horizon period,

      similarly we are having "Open Items" with Max.% & No.of days.

      This works in conjuction with the credit limit & no.of days mentioned against "Open item".

      "Oldest open item"- which we enter the no.of days- X, so that we consider this open item is oldest one, if that open items is overdue for "X" no.of days.

      Now, as per my client req-

      Customer has to restrict who has payment terms 30-60 days, which means customer can settle open item between these credit period.

      Its common practice in many process industry. Customer will provided an option to settle payment between some range of the duration unlike fixed duration.

      I hope SAP might given this option somewhere, if anyone come across this kind of requirement earlier. Just would like to know, how they achieved it.

      My proposal is, Will use static check ( as client is not considering partial deliveries/credit horizon) with "Oldest Open item" in which no.of days will be 30 days. so that open item which is below 30 days will not treated as "Oldest Open Item", after 30 days only it will be an Oldest open item & will be considered for credit check.

      eg:

      OI(open item)

      1 - Jan 1st-

      2 - Jan 2nd

      3- Jan 5th

      -

      -

      -

      30 - Feb 2nd

      then open item will be oldest open item, on 3rd Feb, & considered for credit check. those open items which is within 30 days will not be calculated for credit check.

      I am in process of Testing, very soon will post those results, whether its working or not.

      Thanks to Raja. Any more thoughts please welcome.

  • author's profile photo Former Member
    Former Member
    Posted on Dec 20, 2008 at 05:41 AM

    As per my understanding about Credit check, it should consider the whole period and not 30 days onwards. This looks like a requirement which is not possible in Standard SAP.

    Regards,

    Rajesh Banka

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  • Posted on Jan 17, 2009 at 08:49 AM

    NOT YET ANSWERED

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