F110 incorrectly grants cash discount to direct debit customers

[Former Member]

Hi,

I am running F110 to execute direct debits for certain customers in Europe. Everything works fine except for one "error"

it consistently include cash discounts on customer invoices which are way past net due date. F110 run date = 8/10/10, next run date 09/10/10. And yes, additional logs in the F110 parameters are set. See excerpt from display log below:

Due date determination additional log

Document 8130000238 line item 001 via EUR 300.00

Terms of payment: 07/01/2010 10 3.000 % 30 0.000 % 0

Customer receivable is payable on 07/11/2010 with cash discount terms 1

Include customer items due by 09/10/2010

Item should be paid now

Item is due with 3.000 % cash discount

All other invoices are calculated correctly. For the above, the cash discount base is set correctly What could be wrong?

Johan

[raymond_moynihan · Accepted solution]

Hello Johan,

The system is working as designed . It will be necessary yo enter a second term.

Please review OSS Note 48384, which explains the system behaviour.

The second term is necessary as explained in the note. In the manual

clearing process the cash discount can be influenced by the user. This

is not common in the automatic payment process.

So please maintain terms of payment appropriately, say for the

example: 30 days 2.5% and 31 days 0%.

I hope this clarifies

Ray

Edited by: Raymond Moynihan on Aug 10, 2010 11:10 PM

[Former Member · Accepted solution]

Hello Raymond,

we are using a payment term - D006 - which is defined as follows: (from table T052):

Term Percentage No. of days / Fixed date Additional months

1. 3,000 % 10 0 0

2. 0,000 % 30 0 0

3. 0 0 0

The documents in question have taken that over from the master record. But still, cust. invoices created on July 1st, with a 3% cash discount within the first 10 days and a 30 days due net, are still being picked up by F110 on August 10th, with cash discount taken by the customer. In this case, of course, the discount should have been ignored.

Rgds,

Johan

[Former Member · Accepted solution]

Hi,

Please go to transaction FBZP and "All Company Codes" button. Navigate to your company code.

Check whether the "Max Cash Discount" option is selected under block "Cash discount and tolerances. This tick enables the maximum cash ddiscount, even after the due date. It ticked, you need to remove this.

Regards,

Gaurav

[Former Member · Accepted solution]

Gaurav,

the 'Max cash discount' box is unchecked (FBZP)., so that is not the issue. I have checked several expert forums and think I have checked everything they have suggested there. I am at a loss here.

Johan

[ravichandran_iyer · Accepted solution]

Hi,

Verify the posting date of the F110 transaction - parameters tab. If the posting date is before July 11, it will calculate discounts.

Ravi.

[Former Member · Accepted solution]

Posting date is todays' date (e.g. August 10th, 2010).

This is a large Retail implementation with very fragmented areas of responsibility. I have checked all known posts and blogs and come up with nothing. Payment terms and payment methods are both present in the customer master record. When I run the Payment Proposal today with only two customer invoices to be paid, I have the following settings:

1. invoice with 2.5% cash discount - 10 days / 30 days net. Invoice, posting and baseline date = 08/12/2010. $13.32. The system

correctly calculates 2.5% cash discount for this item

2. invoice with 3% cash discount - 10 days/30 days net. Invoice, posting and baseline date = 08/01/2010. $100, no VA. The

system incoorectly gives this customer a cash discount of 3% for this invoice - see below

Parameters in F110: Posting date = 08/16/2010, next payment run 08/26/2010, Docs. entered up to = 08/16/2010, Customer items due by = 08/26/2010, this one cust. is psecified, payment method = E (direct debit) etc.

==> Display log for invoice # 2, $100.-:

Due date determination additional log

Document 8130000263 line item 001 via EUR 100.00

Terms of payment: 08/01/2010 10 3.000 % 30 0.000 % 0

Customer receivable is payable on 08/11/2010 with cash discount terms 1

Include customer items due by 09/05/2010

Item should be paid now

Item is due with 3.000 % cash discount

Payment method selection additional log

Payment method selection for items due now to the amount of EUR 97.00

Payment method "E" is being checked

Bank details are being checked

Customer/vendor bank details are being checked

System reads house banks and checks if they are allowed

Our bank 20030 is being checked

For currency EUR and 000 days 500,000,000.00 are planned

Available amount is enough, 499,999,986.68 EUR still available, 97.00 necessary

House bank is selected ...

Our bank details 20030 20030 are used

Bank details of the partner with ctry DE bk no. 12070000 acct 01234567899 are being used

Payment method "E" is permitted

Does anyone have any clue what's going on??

Edited by: WickedViking on Aug 16, 2010 7:24 PM

[Former Member · Accepted solution]

Hi,

I am facing the same problem.

Our payment term

15 days 1%

30 days 0%

Even if I do a direct debit run after 100 days I still get cash discount and I don´t have the box ticked with max cash discount in FBZP/OBVU.

Anyone; a solution for it?

Regards

[Former Member · Accepted solution]

I am seeing the same behavior. Has anyone found a solution?

Kevin

[Former Member]

Dear Johan,

In the coding for the automatic payment program, if the document

is a Customer Invoice, the first condition of the payment term will

always be selected. The reason for this design is that the customer

has already agreed for the payment to be taken on a specific day at a

specific rate. He should not be penalized if the automatic entry is

not created on that day.

For a manual payment, it makes sense to penalize the customer if they

pay late, but not for an automated payment.

The customer has no influence over the time of payment. Therefore, one

may not be able to hold the customer responsible, if collections are too

late for the time period set for the highest cash discount terms. There

is no legal or business reason for raising the payment amount because

the payment program was run late.

Keeping the above scenario in mind, and considering the attached Note

31345, I would consider this as a Consulting issue. Please read the

attached Note 31345 which will make this issue clear.

BR Hana

[Former Member]

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