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Former Member

Vendor Payment earlier than Due Date with Discounts

Hi Gurus,

Our Client is interested in using the below mentioned process.

  • Once an MM invoice has been approved for payment, Client electronically instructs the Bank to pay the supplier on the future due date. Our Clients ERP/AP environment is integrated with the bank for automatic, file-based straight-through processing of payment instructions.
  • Supplier will be notified via Internet (email and website) of payment from Buyer on a future due date. Supplier may immediately and electronically discount the underlying receivables to cash without recourse, at agreed upon discount rates. Client funds the bank for full amount of invoices due on scheduled payment net 60 days.

We are working on to find the solution. Hence we have decided on using the Partner Function - PI in the Vendor Master of the Supplier. We wrote a logic to read the (Supplier) Vendor Master's Partner function with Invoicing Party = (4XXXX) Bank's Vendor Master ID to select the Vendor to be part of this program.

We can able to achieve this for Invoices posted for MIRO / PO. But this solution wont work on Invoices posted through FI transactions (FB01) in this case. We also thought of using the Alternate Payee field in the Vendor Master but that wont solve the purpose for Purchaing as it wont be tied with P.Org.

Just wondering, if there is anyone who have worked on similar kind of process? If you could share your thoughts in regards to this which can be mutually agreed by FI & Purchasing?

Thanks for the help in advance.



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