Cash Dicount to be inventorized

[Former Member]

Hi

In our purchase order, we have a condition for taking cash discount. We want to inventorize the cash discount. If suppose the material price is 100, then the a/c entries to be passed is

MIGO

Material A./c Dr 100

Cash Discount Dr 10

Gr/IR A/c Cr 100

Material A/c Cr 10

MIRO

GR/IR Dr 100

Vendor A/c Cr 100

Vendor A/c Dr 10

cash Discount Cr 10

The idea is to pass the cash discount as a debit memo to the vendor a/c and the discount to be inventorized. How can the same be effected in SAP?

Regards

Sanil Bhandari

[Former Member · Accepted solution]

Hi,

How do you plan to have the cash discount at the time of MIGO or MIRO? Cash discount will be effected at the time of payment to the vendor.

The customer might be doing the posting in Legacy System at the G/L Account level and manually adjusting the material price. In case of SAP, cash discount will not reflect against the material directly.

Regards,

Ramanand