Terms of Payment

[Former Member]

Dear All,

How can i define New Terms of Payment for each of these scenarios:

1-Payment monthly in advance with % of the whole price of the contract.

2-Payment of whole job in advance invoiced and paid

[Former Member · Accepted solution]

Dear Mahmoud,

Define Payment Terms Z001, ZOO2 AND ZOO3 by Tcode: OBB8

And Assign Payment terms Z002 AND Z003 TO Z001 BY Tcode: OBB9

1. Payment Term Z002 is for Advance Payment for example 25%

2. Payment Term Z003 is for Whole Payment

Best Regards,

MH

[Former Member]

hello,why do i need for that assigment ?

Thanks

[jpfriends079]

Based on my understanding of your question.

These assignment will trigger corresponding effect on your accounting doc with due date, which will assist & provide information to your Finance guy or collection guys related to customer aging/payment due dates.

As you know, payment terms is conditions under which a seller will make a sale. Typically, these terms specify the period allowed to a buyer to pay off the amount due, and may demand cash in advance, cash on delivery, deferred payment period of 30 days or more, etc.

So, if you have maintained a key for the payment terms in the customer master record, the system automatically defaults this key whenever you enter an item for this customer. The payment terms key can determine the following:

-The valid cash discount rate for an individual payment with a maximum of 3 payment terms (first cash discount period, second cash discount period and due date for net payment) and also a baseline date for the payment or

-The payment terms for hold-back/retain-age

For understanding refer following link:

[Terms of Payment (Accounts Receivable)|http://help.sap.com/saphelp_40b/helpdata/en/96/8b3fc643ce11d189ee0000e81ddfac/content.htm]

Hope it can assist you.

Thanks & Regards

JP