Sap presentation (Payment terms)

Payment terms

1. Payment Terms

2. The system needs following data:- Base line date Cash discounts terms Cash discounts percentage rates

3. Terms of payment in invoices

4. The terms of payment defaulted when posting an invoice depends on where the invoice is created:- If the invoice is created in financials, the terms of payment from the company code segment are defaulted. If a customer is created a sales order management, the terms of payment from the sales area segment are defaulted. If a vendor invoices is created in purchasing management, terms of payment from the purchase organization segment are defaulted.

5. Installments payments:-

6. Cash discount base amount:-

7. Posting cash discount – Gross Procedure

8. The cash discount amount is entered either manually or automatically by the system using the rates in the terms of payment. When an open item on a customer or vendor account is cleared, the possible cash discount is posted automatically to an account for “cash discount expense” or “cash discount received”.