Change in Terms of payment for Vendors / Customers

[Former Member]

Dear Friends,

If the Terms of Payments are changed in Vendor / Customer master data then what will be the effect on below situation :

1. How will any open Purchase Orders and any open Sales Orders be updated?

2. How will processed, yet open customer invoices and vendor invoices be updated?

Please share your views on above.

Regards,

[Former Member]

Hi Bidyut,

SAP works on very clear philosphy known as changes with prospective effect.

When you create a Purchase order or Sales order, this import Payment term from Purchasing area (not from Payment TAB) and sales area. In case you change the payment term in Vendor/Customer master, the invoices created taking the reference of the already created purchase/Sales orders will still have the old Payment Term.

But the payment term field is editable so if you think these are not correct, you can change the payment term in PO/SO and even in invoices anytime but useful only if changed before they are paid.

Hope this answers your query.

Regards

Bharat

[Former Member]

Hi ,

Thanks for the reply.

There is a further updation in the situation.

Suppose the original existing payment terms is deleted completely and not at all maintained in OBB8 , What will happen to the open purchase orders and sales orders ? and also for open sales / purchase invoices ?

Regards,

[Former Member]

Hi,

Never had such a situation.

However, as per my understanding, the TOP would remain assigned in the master or the transaction unless changed. But, the due date would not be calculated according to the deleted TOP and would take the document date.

However, any new transaction for the particular vendor / customer would throw an error regarding non-availability of the deleted TOP.

Everyone, please confirm.

[Former Member]

System defaults the payment term from the cust / vend master record. In the scenario you have given, a change of payment term in cust / vend master record will not update (automatically) open POs / Sales Orders.

Cust / Vend open invoices will continue to have payment term that was defaulted (or manually entered) at the time of invoice entry in the system.

The changes you made to cust / vend master record (at company code level or purchase org. / sales area level) will get defaulted in subsequent Invoices / Sales Orders / POs, which however, can be overwritten before saving the document.