Vendor payment terms.

[Former Member]

Hi All,

I have a query in regard to vendor payment terms. If I have a payment term which says as below:

payment term 0024 - 10 days, 7.5% cash discount, Net due 30 days.

If I make a payment to vendor in less than 10 days I will get a discount on 7.5% on the total PO value. Is my understanding correct? And how will I make a payment to vendor (By posting MIRO for 7.5% less value) to avail the discount or is there any other process.

Thanks in advance

[Former Member]

Hi Prashant ,

MIRO is posted for the whole amount.

It is from FI end who takes care of these discounts while making the actual payment to vendor.

Regards

Ramesh Ch

[Former Member]

Hi Ramesh,

Thanks for your reply.

Can you please let me know on SAP process for the same, where from FI end discount is taken care.

Regards

Prashant